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HomeMy WebLinkAboutJune 29, 1998 u u C) CITY of ANDOVER EDA Meeting - Monday, June 29, 1998 Call to Order - 7:00 PM Discussion Items 1. Discuss Architectural Concept/Theater 2. Discuss Additional Land Purchase to 116, LLC 3. Discuss Utility Fees - Commercial Park 4. Discuss Covenants - Commercial Park (J 5. Other Business Adjournment CJ U / , u CJ CITY of ANDOVER ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JUNE 29, 1998 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on June 29, 1998, 7:05 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Mike Knight and Ken Orttel Resident members Bill Hupp and Robert Nowak Absent: Councilmembers Bonnie Dehn and John Kunza Also present: City Attorney, William G. Hawkins Public Works Superintendent, Frank Stone City Finance Director, Jean McGann Accountant, Brian Swanson City Engineer, Scott Erickson Fire Chief, Dan Winkel U City Clerk, Vicki V olk Building Official, Dave Almgren Planner, John Hinzman Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others DISCUSS ARCHITECTURAL CONCEPT/THEATER Mike Quigley and Tony Emmerich presented drawings and a scale of the proposed Andover Theater to be constructed on the corner of Jay Street and Bunker Lake Boulevard. Mr. Quigley showed a sample of the building blocks which will be used on the outside of the theater and explained the construction of the stadium seating and lobby area. There,will be no basement; nothing is below grade. The amount of restroom facilities will meet state code. The signs for the movies will be along Bunker Lake Boulevard, not on the building itself. The name of the theater may be place on the back side as well, depending on the sign ordinance. Mr. Carlberg stated Staff has not yet addressed the sIgns. Mr. Quigley stated there is a parking lot standard for the industry; however, Andover's,ordinance is more restrictive and requires more parking. There have been only brief discussions on the lighting (~\ on the building and in the parking lot. There will definitely be some lighting on the building and U there may be some recessed lighting along the walkways. They have no intent of using neon lighting. The lights in the parking lot will coordinate with the rest of the Cominercial Park. Mr. Quigley also stated they will have to begin construction very soon because of the time it takes to receive materials that are ordered. \ , \. ) (~ '- , " Andover Economic Development Authority Meeting , Minutes - June 29, J 998 , ) Page 2 (Discuss Architectural Concept/Theater, Continued) The EDA generally liked the earth tone colors being proposed. The more conservative approach is preferred over the trendy ones which become dated very quickly. Mr. Quigley stated there will definitely be some canopy to join this building with the proposed restaurant. It is yet to be determined whether the canopy will actually attach to each building, but there will be a covered walkway between the two buildings. It is about 80 feet between the two buildings. Mr. Quigley pointed out the work to be done in Phase 1, which will include all of the parking for the theater. Snow removal will consist of hauling most of it away, which is standard for most commercial areas. There was some discussion on whether there would be room in the ponding area for the snow. Mr. Erickson didn't know of any restrictions for locating the snow on the ponding area. The ponding designed for the Commercial Park will hold all of the run off from this site; however, temporary ponding will be needed for now due to the phasing. The grading and streets will be done while the theater is being constructed. Bids for the grading and streets will be opened on July 13. , _. \ Mr. Emmerich stated the site is within one foot of the grade. They need to start construction prior , j to July 13 in order to open by November 24. He has talked with the president of the theater which is being proposed in Coon Rapids. He has been told that company will change their plans if this theater opens in November. Mr. Quigley explained the proposal for the other building is for two different types of restaurants, one casual and one being more formal. The brick on that building will be the same as on the theater. Mr. Emmerich and Mr. Quigley left the room while the EDA and City Attorney reviewed a letter regarding several issues on this project. DISCUSS ADDITIONAL LAND PURCHASE AND UTILITY FEES - COMMERCIAL PARK Attorney Hawkins outlined the issues noted in a letter from the developers regarding the proposed theater/restaurant project. The EDA made the following comments: Purchase J 4 acres at $0.65 per square foot - Mr. Carlberg stated the original request was for 8 acres. The acreage now being asked for is 14 acres for the theater and restaurant. Staff is very concerned about the amount of property remaining to the south so there is enough for an office warehouse development between this development and Commercial Boulevard. Rather than a street between the two areas, it may be necessary to just install a private road in the back. Or joint parking may be an option. The major reason for the additional six acres for the project is to meet the City's parking area requirements. The question is does the EDA want to sell the 14 acres at the original proposal ) of$0.6S per square foot. The developers have also expressed an interest in purchasing the remaining land south to Commercial Boulevard as a third phase of development, but that is not a part of the current proposal. '\ ,~ \.j Andover Economic Development Authority Meeting / Minutes - June 29, 1998 Page 3 (Discuss Additional Land Purchase and Utility Fees - Commercial Park, Continued) The EDA generally agreed that joint parking with an office warehouse development to the south would be feasible and preferable. It was also noted that once a project has been completed in this area, it will overcome the negative feelings others may be having about building in the area. The increase in acreage for the theater is needed to meet the City's parking ordinance. Some also felt this is a facility that is drastically needed in Andover. Mr. Fursman also estimated the two buildings in the project will provide about $2 million in taxes over ten years. The EDA then agreed to sell the 14 acres at $0.65 per square foot. It was felt, however, that the purchase price for any additional land would need further negotiation. Taxes and assessments - Attorney Hawkins stated the developers are asking that the City pay the real estate taxes for this year as well as the unpaid assessments. They are also asking that the City install all streets at its own expense. In addition, they want the City to grade the site to their plan. General real estate practice is that the taxes are pro-rated. In the past the City has paid the assessments, but the developer paid the connection charges to the utilities. , Attorney Hawkins stated he prepared a draft purchase agreement on the first phase plus an option ) on the second phase. That option expires on March 1, 1999. He is requesting $2S,000 for that option; so if they back out, they would lose that money. After some discussion, the EDA generally agreed with the purchase agreement for Phase I as proposed plus the option as proposed, both for $0.65 per square foot. It was felt that even if the developers backed out of the option, it should not be a problem finding other developers for that second phase. They also felt the option for Phase 2 should not be assignable unless the EDA approves it. Mr. Erickson stated he talked to the developers. The City's plan would coincide with their plan but would be a rough grade to get it to the contours the developers can work with. He didn't have a problem with the request for grading. The EDA discussed the charges to the developers in the first Commercial Park. It was generally agreed that the same policy would apply to this purchase for this project because it is the first one in this Park. The developer will be asked to pay the pro-rated real estate taxes and the connection charges to the utilities. The City will absorb the assessments. This policy should be reviewed before other parcels are sold, as it may not be necessary to waive those fees for the rest of the Park. Mr. Erickson noted whatever costs are picked up by the City must be absorbed by the trunk fund unless the TIF reimburses those funds. Ms. McGann felt it would be better to establish a loan receivable from the TIF. Liquor license - Attorney Hawkins noted the developers are also requesting the City agree to grant " them a liquor license for the restaurants. The EDA noted the City cannot commit to granting a liquor ) license without knowing the operators. " \ (j \.._) ) Andover Economic Development Authority Meeting \ Minutes - June 29, 1998 Page 4 (Discuss Additional Land Purchase and Utility Fees - Commercial Park, Continued) Platting - Attorney Hawkins stated the developers are asking the City to plat the land. It is torrens property, so it has to be platted. Mr. Carlberg stated flexibility is needed. Councilmember Orttel suggested the Park be platted as a PUD and then lots sold as needed. The EDA generally agreed the City should be platting the property. Starting date - Attorney Hawkins stated because of the time constraints, the developers would like to start construction tomorrow, though the purchase agreement will not be completed until the middle of July. The EDA agreed to give special permission to work on the property before ownership is transferred and before it is platted. The EDA recessed to allow the Attorney to discuss the EDA's recommendations with the developers, 8:20; reconvened at 8:26 p.m. DISCUSS COVENANTS - COMMERCIAL PARK \ '-/ Mr. Hinzman asked for comments on the draft of the Declaration of Covenants, Conditions and Restrictions for the Andover Commercial Park 2nd Addition. There is a variance procedure if the property owners want to vary from the covenant. The intent is fees would be charged to the property owners, and the City would maintain the open spaces, ponding, trails, etc. Mr. Carlberg noted that the covenants as proposed would be legally binding once the property is sold. He asked how the EDA would like to establish an association and the fees. An option would be to incorporate an association where the City has a controlling interest; but once the Park is 89 percent filled, the association would be turned over to them and the EDA would no longer be involved. Mr. Hinzman stated once it is turned over to the association, the covenants would still have to be maintained. The EDA felt the covenants should include a statement clarifying the fees will be charged the property owners to maintain the open spaces, lights, possibly for dumping snow in the pond, to maintain the ponds to a higher level than the City normally does, maintenance of the parkway on Jay Street, etc. The amount ofthe fees would initially be determined by the EDA and could be assessed to the property owners. They also agreed that at some point the association should be turned over to the property owners, after which the EDA would no longer be involved. Councilmember Orttel suggested finding out the county's plans for a trail along Bunker Lake Boulevard, as that may impact the amount of green space and right of way. Mr. Erickson stated ~hey will make sure there is enough property. It may have to be shifted and there may have to be a \ variance for the parking setbacks. J u (j Andover Economic Development Authority Meeting \ ) Minutes - June 29, 1998 Page 5 PURCHASE OF PROPERTYffHEATER Attorney Hawkins stated the developers have generally agreed to the EDA's proposal. He anticipated a July 15 closing date. The developers will be digging the footings but not grading the property before that. Mr. Erickson did not see a problem with grading for the footings. Attorney Hawkins recommended the EDA authorize the Chairman and Executive Director to enter into a purchase agreement and option in accordance to the terms discussed this evening. Motion by Knight, Seconded by Hupp, to so move. Motion carried on a S- Yes, 2-Absent (Dehn, Kunza) vote. Motion by Knight, Seconded by Hupp, to adjourn. Motion carried unanimously. The meeting adjourned at 8:44 p.m. \ / Respectfully submitted, . - ~~~~~L Recording Secretary , , r