HomeMy WebLinkAboutApril 7, 1998
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::) CITY of ANDOVER
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY CLOSED MEETING
APRIL 7, 1998 - MINUTES
A Closed Meeting of the Andover Economic Development Authority was called to order by Mayor
Jack McKelvey on April 7, 1998, 7:00 p.m., at the Andover City Hall, I68S Crosstown Boulevard
NW, Andover, Minnesota, to meet with the City Attorney regarding the settlement offer for
Commercial Auto Parts.
Present: Councilmembers Bonnie Dehn, Mike Knight, John Kunza, Ken Orttel
Resident member Bill Hupp
Absent: Resident member Robert Nowak
Also present: City Attorney, William G. Hawkins
City Engineer, Scott Erickson
Planner, John Hinzman
Community Development Director, Dave Carlberg
City Administrator, Richard Fursman
0 Attorney Hawkins reviewed the settlement offer received from Charles Mistelske's attorney, john
Bannigan ofBannigan & Kelly, P.A., dated April 6, 1998. The request was for $880,000 for the real
estate and fixtures plus relocation claims, for a total of$I,826,000. Attorney Hawkins advised the
EDA is responsible for $850,000 for the real estate plus $5S8,000 for relocation costs. He felt much
of what is being asked above that amount is inflated costs or costs that the City is not obligated to
pay. The City only has to pay for one move and for 12 months of storage. There is also some
exposure by going to court. The City had budgeted about $1,320,000, but the request is about
$700,000 above that. The matter will be set for trial for late summer or early fall if it is not settled.
He felt a counter offer of $1,2S0,000 would be realistic. Attorney Hawkins stated because Mrs.
Mistelske is contesting her share of the business in the divorce case, the City can only release the
relocation benefits to Mr. Mistelske at this time.
Mr. Fursman understood Mr. Mistelske has no funds and needs a SO percent down payment on his
newbusiness. If the cost for Commercial Auto Parts comes to $1,320,000, there would still be
enough funds to do the grading and ponding for that entire commercial area. He'd recommend that
the northwest corner be left undeveloped for now because of the high cost of developing that area.
It would also leave about $550,000 in the TIP fund as a contingency.
After discussing the issue, the EDA directed Attorney Hawkins to continue negotiations with-Mr.
Mistelske and his attorney and offer $1.2 million for the real estate and relocation costs.
(--...... The meeting ended at 7:30 p.m.
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~) CITY of ANDOVER
EDA Meeting - Tuesday, April 7, 1998
Call to Order - 7:00 PM
Discussion Items
1. Commercial Auto SettlementlPark Update
2. Charles Mistelske Relocation Benefits
Other Business
Adjournment
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0 CITY of ANDOVER
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
APRIL 7, 1998 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack
McKelvey on April 7, 1998, 7:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard Nw,
Andover, Minnesota.
Present: Councilmembers Bonnie Dehn, Mike Knight, John Kunza, Ken Orttel
Resident member Bill Hupp
Absent: Resident member Robert Nowak
Also present: City Attorney, William G. Hawkins
City Engineer, Scott Erickson
Planner, John Hinzman
Community Development Director, Dave Carlberg
City Administrator, Richard Fursman
Others
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COMMERCIAL AUTO SETTLEMENT
Mayor McKelvey asked for a motion to direct the City Attorney to negotiate for the purchase of the
Commercial Auto site per the agreement during the closed session this evening.
Motion by Dehn, Seconded by Orttel,to so move. Motion carried on an 6-Yes, I-Absent (Nowak)
vote.
CHARLES MISTELSKE RELOCATION BENEFITS
Attorney Hawkins explained Mr. Mistelske had a building on the corner of Bunker Lake Boulevard
and Jay Street where he had stored items. The EDA is obligated to pay for 12 months of storage of
those items offsite. They had a hearing inrront of an arbitrator, who directed that $2,500 per month
for storage was reasonable. Mr. Mistelske was initially paid $2,500, and now the EDA owes the
remaining 11 months at $2,500, which amounts to $27,500. That would end the EDA's obligation
for that storage, and he recommended the EDA pay that amount to Mr. Mistelske.
0 Motion by Orttel, Seconded by Knight, the payment as recommended. Motion carried on an 6- Yes,
I-Absent (Nowak) vote.'
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, Andover Economic Development Authority Meeting
\._-, ) Minutes - April 7, 1998
Page 2
ORDER PLANS AND SPECS/ANDOVER COMMERCIAL PARK REDEVELOPMENT
(PHASE 88)/IP97-2
Mr. Erickson reviewed the proposed grading and ponding for the Commercial Park. There would
be a massive amount of grading plus clean up of debris and the construction of a large pond in the
middle of the site, estimated to cost $1,451,546. Ofthat amount, it is estimated the clean up of the
debris and rubble plus the relocation of the wetland on the northwest corner of the park will cost
about $500,000. They have also identified four streets through the Park plus a service drive and the
reconstruction of Jay Street. The total cost for site grading and streets and utilities is estimated to
be $2.S million. There have been discussions about not developing the northwest corner at this time
nor the north-south streets and utilities until they are needed for more flexibility. For now the
suggestion is just to do the site grading and ponding, which would mean working around the
Mistelske site and the M.R. Olson site in the northwest corner. The ponding is anticipated to be eight
feet from the top of the banks to the bottom. It is intended there would be standing water at all times,
but the details have not yet been worked on. The intent is to enhance the area and make it
aesthetically pleasing. The City would maintain the ponds for storm water maintenance levels.
\. Typically those who develop around the pond would maintain it.
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Councilmember Knight felt more discussion and planning needs to be done. He suggested the EDA
hold a work shop to discuss the remaining issues. (The work session was set by the Council for April
21,6 p.m. See April 7, 1998, City Council Meeting Minutes, Page 10. )
Mr. Erickson explained the grading would be done this summer. With the preparation of final plans
and specifications and advertising for bids, it would be about two months before grading can bëgin.
Mr. Fursman stated the development of the northwest corner would take a sizable amount of the
grading budget. That is why it is being recommended that that corner not be graded at this time.
Also, a sample of covenants and restrictions for commercial areas from five or six cities was given
to the EDA. Those covenants need to be finalized in the near future, as well as many other issues.
In addition, the Attorney is working with the EP A over the covenant not to sue release and with the
MNPCA. Mr. Erickson asked that the plans and specifications for the grading of the whole project
and clean up be ordered.
Motion by Knight, Seconded by Dehn, to so move. (See Resolution EDA 0001-98). Motion carried
on a 6-Yes, I-Absent (Nowak) vote.
Motion by Knight, Seconded by Dehn, to adjourn. Motion carried on a 6-Yes, I-Absent (Nowak)
vote. The meeting adjourned at 7:50 p.m.
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~ella A. Peacn, Recording Secretary