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HomeMy WebLinkAboutDecember 2, 1997 Ü /) V CITY of ANDOVER 0 EDA Meeting - Tuesday, December 2, 1997 Call to Order - 6:00 PM Discussion Items 1. Review and Discuss Master Plan! Andover Commercial and Industrial Park 2. Consider Hiring Patchin & Associates, Inc./Appraising Land that has been Contaminated 3. Relocation Agreement Expense/Charles Mistelske 4. Purchase Rick Heidelberger Property Non-Discussion Items 5. Approve 1998 EDA Budget 0 Other Business Adjournment . ~ 0 ( ) ü V r-- ''\, ' CITY of ANDOVER U ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 2, 1997 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on December 2, 1997,6:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Bonnie Dehn, Mike Knight, John Kunza, Ken Orttel Resident members Bill Hupp and Robert Nowak ~ Absent: None Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson City Finance Director, -Jean McGann Planner, John Hinzman Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others /--" '0 REVIEW AND DISCUSS MASTER PLAN/ANDOVER COMMERCIAL AND INDUSTRIAL PARK Sara Weiner and David Hyde, The Leonard Parker Associates, and William Tobin, Tobin Real Estate Company, presented to the EDA their proposal for the development of the Andover Commercial and Industrial Park. Ms. Weiner stated part of their charge was to'develop a focal point that establishes a community identity. It is to have a campus style to it with landscaping that would create buffer zones, open spaces and a bike and trail system. Mr. Hyde then reviewed the visual concept to that charge. There are two locations of designated wetlands which are protected by the state. The proposal is to enhance the wetland areas to create an amenity to draw consumers and potential . purchasers of the land. The development around the wetlands is proposed to be flexible with office warehouse functions to the' southeast, an entertainment area to the northeast and aggregate retail to the west. The southwest area is flexible and could stand alone either as single family residential, multiple residential or possibly senior housing. A pathway system would weave around the wetland area with some playground equipment and perhaps some community related functions. Stop lights would be needed ont Bunker Lake Boulevard at the entrances to the Park on either end and in the middle. The buildings would be one to two stories in height. The identity for the site would be marked by a gateway imagery that frames both the east and west sides of the site with the wetlands in the middle. /,- "- Mr. Tobin eXplained the principle behind the proposal relates to the vision of the City, what is 0 economically feasible, what the market will accept, the size of the development for a 10- to 15-year development plan and the natural features of the site. Also, the draw for the Park is intended to be from the community, not from the wider regional area. " \ U ' ) "-_/ /\ Andover Economic Development Authority Meeting ,,-.J Minutes - December 2, 1997 Page 2 (Master Plan/Andover Commercial and Industrial Park, Continued) Councilmember Knight asked if a hydrology study has been done to determine if there will be standing water on the site. Ms. Weiner stated they have not yet brought in a hydrologist nor landscaping architect, but there are things that can be done to ensure an attractive wetland area. It would be more of a wetland with some standing water, grasses and cattails as opposed to a lake. There was some discussion on the enhancement of the existing wetlands and the incorporation of the storm water retention ponds for the site and suggestions to prevent the area from deteriorating to an unsightly swamp. The ideal situation would be to keep the water at three to four feet. Anything less becomes unsightly; anything more becomes an attractive nuisance and a safety hazard. It probably would not be one continuous water area, though it would look like it is. The designated wetlands and the retention ponds would be separate. Mr. Tobin also discussed the definition of office-warehouse type functions, noting many of the inquiries the City has received from businesses would fall into that category. It would not be an industrial bulk distribution center with large trucks hauling to and from the site. The buildings would be block or brick. It could be a store front or a warehouse showroom. '\ , - ) Councilmember Knight had some concerns with the retail area proposed for the western portion of the site. It is difficult to sustain retail businesses, noting the high turn over at the Andover Downtown Center and other centers in the vicinity. Mayor McKelvey felt the retail businesses should be along Bunker Lake Boulevard with the office buildings in the back. Councilmember Dehn envisioned the retail as speciality retail incorporated with specialty eating establishments where one could leisurely walk the boardwalk, shop in the speciality stores and enjoy some unique beverage or food, for example. People would enjoy the atmosphere of a galerie. She also envisioned this as a good area for the Anoka County Library. Mr. Tobin stated the retail should be built on a demand basis. With the vision of Andover in the next ten years and the expectation that the size will double, the area should be able to support that much more retail. There will not be individual lots accessing onto . Bunker Lake Boulevard. That is why they created an east and west area, as some businesses require more visibility than others. If there is a demand for retail, the best location would be to the west. If there is a demand for entertainment, they feel the best location would be to the northeast. Mr. Tobin stated this provides a complete plan, but there is flexibility built into it. The first thing is to begin to change people's idea of what the area was and what it can become. The decision of the EDA is whether to first improve the site over all like the City of Fridley did with grass, the walkway, etc., to make it more visually attractive and ready for development. The other decision is whether the City wants to construct some buildings and sell or lease. Ms. Weiner felt phase 1 could be improving the wetland and perhaps create family activities such as soccer fields in the undeveloped areas. It would be something that everyone understands that the area will be a family community \ entity. 'J ,~j u . '\ Andover Economic Development Authority Meeting ) Minutes - December 2, 1997 \ / Page 3 (Master Plan/Andover Commercial and Industrial Park, Continued) The Authority generally liked the overall concept, feeling it could be very attractive if done correctly. Mr. Tobin suggested the first phase to be constructed probably would be the office-warehouse because the demand seems to be there. That area is also very approachable and can be developed without a lot of economic output from the City. The north-south roads can almost be installed on demand. The market is good right now and there are various ways to market it from a manpower and financial standpoint. The City can either designate a developer for the entire Park or do much of it themselves. The Authority suggested the City begin discussions with Anoka County regarding the installation of stop lights on Bunker Lake Boulevard. They also suggested another meeting be scheduled with the consultants to discuss marketing techniques. A-fotion by Orttel, Seconded by Dehn, that the Economic Development Authority conceptually approve the plans of the development of the Industrial Park. Motion carried unanimously. ^' 1 , / COI,:WDERHIRING PATCHIN AND ASSOCIATES, INC/APPRAISING LAND THAT HAS BEEN CONT AAUNA TED lV1r. Fursman asked the EDA to consider hiring Patchin and Associates, Inc., a firm with expertise in the field of property that has been contaminated, for the Commercial Auto Parts property. The property is being tested for possible contamination. When the results come back, the City will be in a better position to determine whether or not an expert will be needed on the City's behalf. If there is contamination, this firm would represent the City in court as to the demonstrated value of the propel1y as an expert witness. He asked for authority to retain the firm if it is necessary. Attorney Hawkins noted the firm is very well known and has experience in court. The EDA felt it would be a good idea to have an expert witness if necessary. A-fotion by Dehn, Seconded by Kunza, to retain the firm if the Staff feels it is necessary at the rate . they quoted. Motion carried unanimously. RELOCATION AGREEMENT EXPENSE/CHARLES MISTELSKE Attorney Hawkins stated they City does not yet have an agreement with Mr. Mistelske. All of their attempts for negotiation have been adversarial. The eminent domain proceedings are continuing with a hearing for the Commercial Auto Parts property scheduled for next week. He has made several '\ attempts to negotiate a relocation agreement with Mr. Mistelske, who has indicated no interest. The '. j situation appears to be the City is going to end up the owner of the property and there will be a substantial amount of automobiles and business equipment left on it. In order to facilitate a move by \, U \ ) '-_/ ) Andover Economic Development Authority Meeting '--- .' Minutes - December 2, 1997 Page 4 (Relocation Agreement Expense/Charles Mistelske, Continued) Mr. Mistelske, he suggested the City make a proposal to advance funds. The City has received an estimate of$558,000 to move the property. He is proposing to offer Mr. Mistelske the payment of those funds over time ifhe clears off the property. He didn't know if Mr. Mistelske will accept the proposal. The City does have the obligation to reimburse actual costs of the move. Not all of the funds are given up front. If Mr. Mistelske elects to crush all of the cars, then there would be no relocation expenses. Councilmember Orttel suggested making the payment offer for the relocation costs, but also offer to buy the inventory ifMr. Mistelske has no place to move. It may be more cost effective for the City to buy the inventory than to pay the relocation costs to move it. Motion by Orttel, Seconded by Knight, introducing the relocation agreement prepared by the City Attorney between the City and Commercial Auto parts as presented. Motion carried on a 6- Yes, 1- No (Dehn) vote. '¡ "--,J PURCHASE RICK HEIDELBERGER PROPERTY Attorney Hawkins reported they closed on the purchase of Mom' s Auto Salvage today. The property is cleaned up. There is still the other 0.6-acre parcel owned by Rick Heidelberger that has a home on it. The City is in the process of acquiring it through eminent domain; however, they are continuing to negotiate with the property owner. There is a purchase agreement before the EDA this evening which includes the relocation costs, relocation benefits, as well as the cost of the house and land. The EDA previously authorized $45,000 for moving the items out of the house. This proposal is for $50,000 of relocation costs. Rather than proceed through the eminent domain hearings, he felt this is a reasonable compromise, and he recommended approval contingent upon receiving the soil tests back and there are no soil problems. Mr. Heidelberger has been busy cleaning up Mom's Auto Salvage and has not had time to find another location. Mr. Heidelberger is asking to be allowed to remain in the house until February 28. If this agreement is approved, Attorney Hawkins expected to close on this Friday, and the agreement reflects the right to stay in the building until February 28. k!otion by Orttel, Seconded by McKelvey, the purchase agreement with Rick Heidelberger and the City of Andover be approved as presented. DISCUSSION: Councilmember Dehn wondered why there is an attempt to settle now when it is going through cJndemnation proceedings. Mayor McKelvey stated the offer was $145,000. The compromise is $150,000. It would probably cost the City $6,000 to go through the court proceedings, so he felt this is a good compromise. \ ---) Rick Heidelberger - stated he paid $125,000 for the parcel ofland. The relocation company wants $41,000 to pack his personal belongings, plus storage at a cost of about $1,600 per month for up to \_) C) ) Andover Economic Development Authority Meeting A1inutes - December 2, 1997 Page 5 · (Purchase Rick Heidelberger Property, Continued) a year. The City is basically running him out of town. Plus he's s~ent about $25,000 in attorney fees while dealing with the City, so he is taking about a $25,000 loss as it is. He stated he is willing to accept the agreement as proposed. Motion carried unanimously. APPROVE 1998 EDA BUDGET Motion by Knight, Seconded by Dehn, to so move. DISCUSSION: Ms. McGann explained the tax increment money goes directly into the debt service accounts. The increase is anticipated until the bonds are paid off; then it will be put back into the EDA account. The administrative money comes directly ftom the tax increments. Councilmember Orttel stated he is starting to question the amount of salaries allocated for administrative fees, but he will look into it further next year. Motion carried unanimously. · Jrfotion by Kunza, Seconded by Dehn, to adjourn. Motion carried unanimously. The meeting was adjourned at 7:44 p.m. Respectfully submitted, ,~~l Marcella A. Peach Recording Secretary · \ " "