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HomeMy WebLinkAboutApril 21, 1998 0 u "- CITY of ANDOVER <...) 1685 CROSSTOWN BOULEVARD NW. · ANDOVER, MINNESOTA 55304 . (612) 755-5100 EDA Meeting - Tuesday, April 21, 1998 agenda Bookmark Call to Order - 6:00 PM Name Approval of Minutes minutes Discussion Items 1. Discuss Theater/Restaurant Proposal proposal 2. Set Sale Price/Commercial Park saleprice 3. Commercial Auto Parts Update commauto Adjournment , \ '....J '\ '-..J ü U /' " CITY of ANDOVER U ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 21, 1998 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey onApril21, 1998,6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Bonnie Dehn, Mike Knight, Ken Orttel Resident members Bill Hupp and Robert Nowak Absent: Councilmember John Kunza Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others 0 DISCUSS THEATER/RESTAURANT PROPOSAL The following representatives of Bunker, LLC were present: Tony Emmerich, Gary Gorham, Mike Quigley, Norman Wells, Mark Moots. 'The group presented a conceptual plan for the development of about eleven acres on the southwest corner of Bunker Lake Boulevard and Jay Street. The easternmost building is proposed to be a ten-screen movie theater with stadium style seating and with a seating capacity of 1,496. The westernmost building is proposed to house two restaurants, a banquet hall, game room and pos~ibly an hourly child care facility for patrons of these businesses. Restaurants being proposed are a Champs style restaurant and a formal sit-down type. They are planning for 728 parking lots, with each stall being 10 feet wide and 20 feet deep. The theater would provide employment for 20 to 25 people. They plan to break ground on June 15 for the theater so it can open the end of November, 1998. Mr. Quigley stated this is not the only site they are looking at' for this development, though they would prefer to develop in Andover, their home town. The factors to be considered are the land price, the City's ability to meet their time schedule, the infrastructure to be provided by the City, the ability to ,obtain a liquor license and a commitment by the City that the rest of the commercial site would be compatible to their development. Mr. Nowak was concerned with the timing of the phases and how the customers will be affected. Mr. Quigley explained the intent is to begin phase two in the spring, 1999. They too are concerned with 0 maintaining the least disruption for the theater while the second phase is being constructed. Enough parking will be provided for the theater in the first phase. Industry standards is to provide parking at a 4-to-l ratio. Developing in two phases is strictly a timing issue for them and for the City. Mr. Carlberg stated the ordinance calls for about 500 parking spaces for the theater. Councilmember Orttel suggested Staff look at the ordinance since not all screens will be showing at the same time. , " , u U Regular Andover EDA Meeting -, , , ) Minutes - April 21, 1998 Page 2 (Discuss Theater/Restaurant Proposal, Continued) Councilmember Knight asked about a market study and the ability to sustain another theater in the area. He was concerned with having an empty theater eventually. The developers explained theaters are built based on 3,000 people per screen within a IS-mile radius. Convenience and user iliendly are the factors for success. They intend to provide a high level of service. Councilmember Dehn was concerned with the traffic flow coming in and out of the area plus within the parking lot itself. The developers noted the various outlets, in-only entrances, drop-off areas provided between the buildings, the extra wide travel lanes, the staggered theater times and the anticipated traffic flow coming into and out of the complex. The EDA discussed the need for a traffic light at Jay Street and Bunker Lake Boulevard when this opens, preferably one that turns only on demand from traffic on Jay Street. It was noted that would have to be worked out with the county. Councilmember Orttel also noted that the benefit of the site is the ability to go west or ,south without having to go onto Bunker Lake Boulevard. Mr. Erickson noted the road to the south of this site is not yet constructed. Consideration will be given to incorporating that road into this year's project. \ In discussing the financing of the development, Mr. Emmerich stated they are making an $8 million "- ) commitment to the City, and they are asking the City for help. He hoped the City would provi~e the land. They are creating the anchor for the development; and anything given to them will be recovered very quickly in the tax base. The Authority noted they would have to pay the entire cost of a light at Jay Street and Bunker Lake Boulevard in conjunction with this project, because the intersection would not yet meet warrants. A suggestion was to sell the land for $0.6S per square foot, which is considerably less than what commercial land is being sold for elsewhere. Discussion was on the issue of potentially remaining hazardous site pockets on the site. Mr. Erickson explained the contracts are in place to excavate and remove any potential hazardous waste that may be uncovered during construction. Attorney Hawkins stated the contracts with the EP A and MPCA have not yet been finalized. The City would have to sign an indemnification agreement with the developers so they could not be sued for any of the items related to the hazardous waste site. The City looses nothing by such an agreement because the City is currently the owner and would be responsible anyway. The EDA generally supported the project and directed Staff and the City Engineer to negotiate on the purchase price and other items. It was also agreed that a meeting is needed to discuss other issues relating to the Commercial Park. (That meeting was later set for April 30 following the Board of Review). , \ ) ./ , ) ,-.-J Regular Andover EDA Meeting , j Minutes -April 21, 1998 Page 3 COMMERCIAL AUTO PARTS UPDATE Mr. Fursman reviewed the EDA's direction to the City Attorney when negotiating with Charles Mistelske for the acquisition of Commercial Auto Parts. Apparently Mr. Mistelske has called several Councilmembers rejecting that offer. Attorney Hawkins stated he has not received a rejection from Mr. Mistelske's attorney yet. Mr. Mistelske has to have the vehicles off the property within 10 months, or the City will crush the cars and sell them. The only obligations of the City now are the $S20,000 for the land and about $600,000 in relocation expenses. There will be court costs if this goes to trial. The EDA did not feel their offer for the property is out ofline and directed the Attorney to continue negotiations if possible. Motion by Dehn, Seconded by Knight, to adjourn. Motion carried on a 6-Yes, I-Absent (K~nza) vote.. The meeting adjourned at 7: 10 p.m. / Respectfully submitted, . ~~~ Marcella A Peach Recording Secretary \ )