HomeMy WebLinkAboutFebruary 17, 1998
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0 CITY of ANDOVER
EDA Meeting - Tuesday, February 17, 1998
Call to Order - 7:00 PM
Discussion Items
1. Review Commercial Auto
Other Business
Adjournment
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0 CITY of ANDOVER
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
FEBRUARY 17, 1998 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack
McKelvey on February 17, 1998, 7: 10 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: Robert Nowak
Also present: City Attorney, William G. Hawkins
City Engineer, Scott Erickson
Community Development Director, Dave Carlberg
City Administrator, Richard Fursman
Others
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V REVIEW COMMERCIAL AUTO
Mr. Fursman reminded the Authority they have authorized $100,000 to Charles Mistelski for moving
expenses. The expert firm hired by the City to oversee the moving of the business has indicated about
$140,000 worth of moving activity has already taken place. He asked the EDA to authorize an
additional $40,000 to Mr. Mistelski. In addition, $10,000 in earnest money is being requested for the
purchase of the site. This amount would be subtracted from the cost of the property.
Attorney Hawkins understands Mr. Mistelski does not yet have a signed purchase agreement for a .
new location of the business; however, he is looking for authority to make an advance contribution
of $ 10,000 toward the total purchase amount the City will be paying for the property. The City takes
possession of the property at 12:01 a.m. on February 23.
Councilmember Kunza stated he has talked with Mr. Mistelski on several occasions. He asked Mr.
Mistelski ifhe would be willing to drop his attorney so the negotiations could be done directly with
him. Mr Mistelski was unwilling to do so but stated the City owes him money for the storage site on
the corner of Jay Street. Attorney Hawkins clarified he did not tell Mr. Mistelski to drop his attorney.
A claim for $7,500 for storage has been submitted. He asked that Mr. Mistelski and his attorney go
through Conworth, the firm who represents the City for moving. Once Conworth verifies the claim,
it will be'paid.
0 Motion by Orttel, Seconded by Dehn, that the Authority authorize an additional $40,000 in moving
expenses for Commercial Auto and $10,000 that would be charged against the escrow money to be
used for the purchase of a new site for his business. Motion carried on a 6- Yes, I-Absent (Nowak)
vote.
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\ Regular Andover Economic Development Authority Meeting
,,_) Minutes-February 17, 1998
Page 2
AUTHORIZE SECURITY CONTRACT FOR COMMERCIAL AUTO PARTS
Mr. Carlberg again noted the City will take possession of Commercial Auto Parts on February 23,
and the City needs to provide security of the site and the items still remaining on it. Staff is asking
for authority to enter into an agreement with a security company to provide that security at a
maximum rate of $20 per hour. Staff will be looking at a combination of private security plus a
Community Service Officer so private security would not be needed 24 hours a day. Attorney
Hawkins stated potentially the site will have to be secured for up to a year. All of the personal
property has been removed from the site. Rather than moving the cars to a storage site and then to
a new business site, the City has decided to provide security on this site. It is expected the inventory
will be moved by this summer or fall, but the City is obligated to pay for storage and transportation
for a period of 12 months, which had been estimated to cost over half a million dollars.
Councilmember Orttel noted the private security could potentially amount to $182,000. He also noted
the difficulty of inventorying what is there and keeping track of what Mr. Mistelski takes from the
site to avoid confusion. Mayor McKelvey felt that at some point the inventory may be low enough
to be secured inside of the building Councilmember Kunza stated there are 2,200 cars remaining on
, site. Mr. Carlberg stated the Public Works Department will secure the perimeter of the facility to
/ keep people out. Attorney Hawkins stated the business is no longer on site. Something will have
to be worked out with Mr. Mistelski to allow him on the site during the day and keep track of what
is taken.
Mayor McKelvey asked for a motion to allow Staff to contract with a security company at least
temporarily for Commercial Auto, not to exceed $20 per hour. _
Motion by Knight, Seconded by Dehn, to so move and that this be reviewed at the next meeting.
Motion carried on a 6-Yes, I-Absent (Nowak) vote.
Motion by Kunza, Seconded by Knight, to adjourn. Motion carried on a 6- Yes, I-Absent (Nowak)
vote.
The meeting adjourned at 7:26 p.m.
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) Marcella A. Peach
Recording Secretary