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HomeMy WebLinkAboutJuly 21, 1998 u 0 - CITY of ANDOVER , '\ '~ \.- 1685 CROSSTOWN BOULEVARD NW.. . ANDOVER, MINNESOTA 55304 . (612) 755-5100 Economic Development Authority Meeting - Tuesday, July 21, 1998 agenda Call to Order - 7:00 PM Bookmark Name Approval of Miimtes minutes Discussion Items 1. Discuss Financial Assistance - Rental Units/Grey Oaks rentalunits 2. Award Bid/97-2/Andover Commercial Park (Phase II) bid972 3. Other Business Adjournment í '\ '-J r ..... '-J u u (j CITY of ANDOVER ANDOVER ECONOMIC DEVELOPMENTAUTHORITY MEETING JULY 21,1998 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on July 21, 1998, 7:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Mike Knight, John Kunza, Ken Orttel Resident members Bill Hupp and Robert Nowak Absent: Councilmember Bonnie Dehn Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others 0 APPROVAL OF MINUTES July 28, 1998 - Correct as written. July 7, 1998 - Correct as written. Motion by Knight, Seconded by Orttel, approval of the July 29 Minutes. Motion carried on a 5- Yes, I-Present (Kunza), I-Absent (Dehn) vote. Motion by Orttel, Seconded by Kunza, approval' of the July 7 Minutes. Motion carried on a 3- Yes, 3-Present (Knight, Hupp, Nowak), I-Absent (Dehn) vote. DISCUSS FINANCIAL ASSISTANCE - RENTAL UNITS/GREY OAKS Mr. Carlberg stated he met with Mr. Windschitl, the developer, and Mary Ippel of Briggs and Morgan, bond counsel for the City. The request is for financial assistance for the two 64-unit buildings and possibly one 24-unit building. Ms. Ippel has stated the only option is to create a Tax Increment Financing Housing District in that area. If that is done, the City can regulate by contract that the buildings be for seniors only. There are very strict guidelines relating to the rental units themselves based on the income of the seniors. The scope of the project was not discussed. The developer wanted to know if the EDA was interested in pursing it. " (~ Mr. Carlberg explained the proposal would be very similar to the Farmstead project where increment financing is being paid back to the developer over a 16-year period for improvements done up front and financed by the developer. The proposal is that that same method would be used for the Grey ~-) CJ Andover Economic Development Authority Meeting \ Minutes - July 21, 1998 I , ) - Page 2 (Discuss Financial Assistance - Rental Units/Grey Oaks, Continued) Oaks project. It would only apply to the rental units, and a certain number of the units would have to be affordable. There really would be no financial risk to the City. He estimated about one-third of the Andover PUD would be a part of the TIF project. In briefly discussing the concept, the EDA members were interested in pursing it further, wanting more information. Councilmember Orttel thought the intent of the developer was that the entire development would be for senior housing; but apparently the TIF assistance to the rental units is the only way to guarantee a minimum age of clientele. The rest of the units will be privately owned. Charlie Veiman - asked about the number of units that would be affected and whether or not the renters would be paying dues to an association. Mr. Carlberg explained about IS4 units would be affected by this project. The rest would be built for sale. He didn't know if an association is being formed for the development or if the renters would contribute. Mayor McKelvey noted a letter received from Mr. Windschitl asking that all of his items on the agendas this evening be tabled to August 4. The EDA acknowledged the request, stating they were ) not adversed to the proposal and asked that more information be brought back to them. " - . A WARD BID/IP97-2/ANDOVER COMMERCIAL PARK (PHASE II) Mr. Erickson reviewed the bids received for Phase II of the Andover Commercial Park, which is basically the grading of the Park. The low bid also includes the cleanup, excavation and wetland replacement for the M. R. Olson site, plus the grading for a stormwater ponding area to the east of . the City Hall. The material from the pond will be utilized for some of the fill needed for the Commercial Park. Because the bid is considerably lower than the engineer's estimate, Staff is recommending the alternate to clean up the M. R. Olson site be done at this time. Motion by Knight, Seconded by Kunza, the Resolution as prepared awarding the bid to E. H. Earth Movers, Inc. (Resolution EDA 004-98) Motion carried on a 6- Yes, I-Absent (Dehn) vote. OTHER BUSINESS Andover theater - Mr. Carlberg stated the developers have started to prepare the dirt work for the site. A purchase agreement has been signed, and Staff will be reviewing the site and landscaping plan. The intent is still to open by Thanksgiving. , Excess dirt in Commercial Park - Mr. Erickson stated that whenever there is excess dirt in a project, ) it is being hauled to the Commercial Park site. The dirt under the plastic has low levels of contamination and will be used in paving projects around the City. r . \ , l~ '-_.1 \ Andover Economic Development Authority Meeting ) Minutes - July 21, 1998 Page 3 (Other Business, Continued) Moving expenses for C. Mistels/d - Attorney Hawkins stated the City is under no legal obligation to pay Mr. Mistelski moving expenses for cars that are being crushed and sold. The inventory has basically been sold. If tires, etc., are moved and relocated, then the City would be obligated to pay relocation expenses. The building belongs to the City and can be taken down by the City. Mr. Fursman stated he will make one more contact with Mr. Mistelski to see ifhe wants the building. If so, he will be given a specific period of time in which to remove it. Otherwise, the City will consolidate the items and remove it. County property south of the WDE site - Mr. Fursman stated he has not received a response from the county regarding the City's request to review the purchase price of the property. Motion by Knight, Seconded by Kunza, to adjourn. Motion carried on a 6- Yes, I-Absent (Dehn) vote. \ The meeting adjourned at 7:30 p.m. " / Respectfully submitted, ~ ~2>t::1- Mar lla A. Peach Recording Secretary , . ' )