HomeMy WebLinkAboutJuly 7, 1998
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CITY of ANDOVER ;
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\.J 1685 CROSSTOWN BOULEVARD NW. · ANDOVER, MINNESOTA 55304 · (612) 755-5100 I
EDA Meeting - Tuesday, July 7, 1998 !
agenda
Call to Order - 7:00 PM Bookmark
Name
Approval of Minutes minutes
Discussion Items
I. Request Financial Assistance - Rental Units/Andover PUD reandoverpud
2. Authorize Traffic Study/97-2/Andover Commercial Park (Phase II) auth972
3. Other Business
Adjournment
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C) CITY of ANDOVER
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
JULY 7, 1998 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack
McKelvey on July 7, 1998, 7:04 p.m., at the Andover City Hall, 168S Crosstown Boulevard NW,
Andover, Minnesota.
Present: Council members Bonnie Dehn, Ken Grttel
Absent: Councilmember Mike Knight; Resident members Bill Hupp and Robert
Nowak
Also present: City Attorney, William G. Hawkins
City Engineer, Scott Erickson
Community Development Director, Dave Carlberg
City Administrator, Richard Fursman
Others
Ü APPROVAL OF MINUTES
June 16, 1998 - Correct as written.
Motion by Dehn, Seconded by Kunza, to approve the Minutes as presented. Motion carried on a 4-
Yes, 3-Absent (Hupp, Knight, Nowak) vote.
REQUEST FINANCIAL ASSISTANCE - RENTAL UNITS/ANDOVER PUD
Mr. Carlberg explained the developer of Grey Oaks (Andover PUD), Chesterton Partnership, has
approached the City requesting the City's financial assistance in the development of two 64-unit and
one 24-unit apartments in the development. These units are designed for senior or elderly housing.
Staff has talked with Mary Ippel of Briggs and Morgan, who assisted the City with the financial
assistance given to The Farmstead project. She has advised that the only means of providing
financial assistance through the EDA would be to establish a housing TIF district in this area.
Jerry Windschitl. Chesterton Partnership - stated the purpose of the request is to pursue a means of
restricting the age limit in the units, which was brought up as a concern when the sketch plan was
before the City. As the architectural drawings are being done, it makes a difference whether the
units will be rented or sold. Ifthe City wishes to provide some financial assistance, the intent would
0 be to rent those units. They would then be constructed without the party walls and other items
needed if they would be sold. From what he is being told, it appears he cannot restrict the age to rent
or purchase those units ifthere isn't public financing involved. If it is involved, he understands that
restriction can be added.
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Andover Economic Development Authority Meeting
, Minutes - July 7, 1998
) Page 2
(Request Financial Assistance - Rental Units/Andover PUD, Continued)
Mr. Carlberg stated by contract the City can control or age restrict the development if Tax Increment
Financial dollars are used. In this case a new TIF housing district would be established in that area.
In the Farmstead project, the rents were reduced some because of the City's financial involvement.
There are very strict guidelines on the use ofTIF funds for housing projects like that. They have to
be for low to moderate income seniors. Only the three units are being proposed for this project and
the age restriction would be established only over those units, not over the entire project.
Mr. Windschitl - stated they are addressing the rental side if City aid is not involved and on the other
units that are not involved. The dilemma is that if all of the units are for sale, it excludes around 40
percent of the senior population from being able to live there. Statistics on the senior population
show a large number of them with equities of $12,000 or less. That means they are only able to
afford to rent. If public funding was not to materialize, they have not excluded rentals but are
leaning more toward sales. If public funding is available, those units would become permanent
rental units because they would not be constructed for sale.
The Authority asked Staffto work with the developer, develop a proposal on the scope of the project,
\ determine how it will impact the renters if the City gets involved and what benefits there would be
to both the renters and the City if public financing is involved. Staff and Mr. Windschitl agreed to
pursue the matter and come back with more information.
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AUTHORIZE TRAFFIC STUDY/IP97-2IANDOVER COMMERCIAL PARK (PHASE II)
Mr. Erickson stated this is not a speed study but a study of the projected traffic flows and the need
for future streets in the Commercial Park, including a signal justification report at Jay Street and
Bunker Lake Boulevard. That report will look at potential traffic volumes and is a critical part of
pursuing a signal at that intersection.
Motion by Dehn, Seconded by Kunza, to so move. Motion carried on a 4- Yes, 3-Absent CHupp,
Knight, Nowak) vote.
Motion by Dehn, Seconded by Kunza, to adjourn. Motion carried on a 4- Yes, 3-Absent CHupp,
Knight, Nowak) vote. The meeting adjourned at 7:22 p.m.
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M~la A. Peach, Recording Secretary