HomeMy WebLinkAboutAugust 18, 1998
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......-j 1685 CROSSTOWN BOULEVARD NW. · ANDOVER, MINNESOTA 55304 . (612) 755-5100
Economic Development Authority Meeting - Tuesday, August 18, 1998 agenda
Call to Order - 7:00 PM Bookmark
Name
Approval of Minutes minutes
Discussion Items
1. Consider Relocation Payment/Commercial Auto relocation
2. Schedule TourNarious Commercial Parks in Other Cities tour
3. Other Business
Adjournment.
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Ü CITY of ANDOVER
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
AUGUST 18,1998 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack
McKelvey on August 18, 1998, 7:14 p.m., at the Andover City Hall, 1685 Crosstown Boulevard
NW, Andover, Minnesota.
Present: Councilmembers Bonnie Dehn, Mike Knight, John Kunza, Ken Orttel
Resident members Robert Nowak
Absent: Resident member Bill Hupp
Also present: City Attorney, William G. Hawkins
City Engineer, Scott Erickson
Community Development Director, Dave Carlberg
City Administrator, Richard Fursmah
Others
U APPRO V AL OF MINUTES
August 4, 1998: Correct as written.
Motion by Dehn, Seconded by Knight, to approve the Minutes as presented. Motion carried on a
5-Yes, I-Present (Nowak), I-Absent CHupp) vote.
CONSIDER RELOCATION PAYMENT/COMMERCIAL AUTO
Mr. Fursman explained the EDA has already paid $150,000 to Commercial Auto Parts for relocation
expenses earlier this year. Over the past six weeks, crushers and clean-up crews have moved a
significant amount of inventory from the site. The yard has been reduced by approximately 80
percent, so an additional payment of$150,000 seems appropriate. He showed a video of the site
currently. The City's relocation consultant initially indicated the cost of moving the salvage yard
would be $550,000. The owner has indicated that anything taken off the site is eligible for
relocation expenses. The City considers parts sold or crushed and then removed from the property
as a sale, not a move to another location and, therefore, is not eligible for relocation expenses. In
reviewing the site and speaking with the City's attorney, he is confident there is at least an additional
$150,000 worth of relocation expenses that have been incurred even though the City has no
verifiable information or confirmation on the exact expenses incurred. By paying this now, the
CJ owner will have enough additional moving revenue to complete the move and get the building down.
Attorney Hawkins agreed, noting there are controls in case the owner doesn't complete the move.
He is confident that the exposure to the City will not be less than the $IS0,000. The owner did not
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, Andover Economic Development Authority Meeting
" j Minutes - August 18, 1998
Page 2
(Consider Relocation Payment/Commercial Auto Parts, Continued)
relocate everything, though a final amount of expense will not be known unless a final report is
received on where the inventory is located. Mr. Fursman stated he would not give the full $IS0,000
to the owner at one time. Payment would be given for expenses that have been verified and then as
additional progress is made. Mr. Carlberg stated they had originally discussed the deadline of
September 1 by which the buildings would be removed, but they are willing to extend the time ffame
if progress is being made.
Council member Kunza stated Mr. Mistelski called him and said he would be willing to move all of
the other things to the front ifhe gets his money. Ifhe doesn't get the money, he will stop removing
items from the site. He'd also like the City to provide a dumpster on site. Mr. Fursman stated Staff
has indicated that can be provided. If the City would take the building down, a dumpster would have
had to be provided anyway. If there is a break down of cooperation, the City can move to
consolidate the yard to the front of the property. Mr. Erickson stated if the property can be cleared
in a timely fashion, the City's contractor will start grading it. Ifit doesn't happen, a separate contract
will be let next year. Attorney Hawkins explained the City must store the property for 12 months,
which is until February, 1999. If it hasn't been removed by that time, the City can have it removed
, and charge the owner for those costs. The City does have the legal authority to move the inventory
"- , } that is still on site to the front of the property.
The Authority discussed the request, the remaining inventory, the need to receive verification of
actual relocation costs incurred and the legal process involved if there is a dispute over the amount
of relocation expenses incurred.
Motion by Knight, Seconded by Dehn, that the Economic Development Authority authorize the
payment of $150,000 in moving expenses to Charles Mistelski incurred at Commercial Auto Parts
to be distributed by the City Administrator and City Attorney as additional moving goals are met.
Motion carried on a 5-Yes, I-No (Kunza), I-Absent (Hupp) vote.
SCHEDULE TOURlVARIOUS COMMERCIAL PARKS IN OTHER CITIES
Mr. Fursman asked the Authority to consider taking a tour of other commercial parks in other cities
to look at themes, designs, lighting, etc. It would probably take an entire day to do so.
The Authority suggested that the Staff make another attempt at video taping other parks and meet
with The Leonard Park Associates, the consultant for the Commercial Park project to review the
video and discuss themes for the development.
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Andover Economic Development Authority Meeting
\ Minutes - August 18, 1998
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Page 3
APPROVE MINOR CHANGES IN AGREEMENT AND CONSENT NOT TO SUE
Attorney Hawkins stated the final agreement with the US EP A on the agreement not to sue any
owner or subsequent transfer of property on the South Andover Superfund site has been received.
There were some minor changes since the Authority last reviewed the agreement, but they did not
affect the document itself. He asked that the EDA and the City Council approve the Agreement and
authorize the appropriate officers to sign it. The agreement will then be forwarded to the attorney
for the EP A, which will then be approved by the Department of Justice. After a 30-day comment
period, the agreement will be signed and returned to the City. The purchase agreement for the sale
of the land for the theater project references this agreement, so those purchasers will be bound by
it.
Motion by Knight, Seconded by Dehn, to so move. Motion carried on a 6-Yes, I-Absent CHupp)
vote.
ltJotion by Knight, Seconded by Dehn, to adjourn. Motion carried on a 6-Yes, I-Absent CHupp)
vote.
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The meeting adjourned at 7:S0 p.m.
Respectfully submitted,
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Recording Secretary
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