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HomeMy WebLinkAboutMarch 4, 1997 o U CITY of ANDOVER .::] 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 · (612) 755-5100, ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MARCH 4, 1997 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on March 4, 1997, 11:34 p.m., at Fire Station No.1, 13875 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Dehn, Knight, Kunza, Orttel Absent: None Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson Community Development Director, Dave Carlberg City Administrator, Richard Fursman Others TIF REPORT Mr. Fursman presented a summary of the Tax Increment Financing as of February 28, 1997. The cash balance is $3,665,960.22; however, with projected future expenditures, that balance is reduced to $151,4778.89. At this time, the EDA is not in a position to approve any other f) expenditures for TIF dollars. Bond payments are expected to run until ~ the year 2012, but it is projected that by that time there will be a cash reserve of $1.7 million based on conservative estimates of revenues. Discussion was on proj ected revenues of land sales. The Authority suggested a policy be established regarding the sale of commercial property as to what types of businesses are desirable, the cost of the land per square foot and the types of incentives that may be offered to businesses. No action was needed. REQUEST ASSISTANCE/MEDICAL CLINIC' Mike Hurley, representing Columbia Park Medical Group, introduced Bruce, Brenholdt, Executive Director and Rolf Skogerboe, Board of Directors' from Columbia Park Medical Group. He explained they have three clinics now, in Columbia Heights, Fridley and Brooklyn Park. They are a family practice, community oriented medical group that takes all insurances and provides a full range of services. They are looking to expand into Andover because it is a growing community. They are proposing to locate just south of the proposed Bill's Superette site and build a 12,000 to 15,000 square-foot clinic In two phases. The first phase would cost about $1.9 million, and the second in three to four years would cost about $1. 6 plus another $700,000 for equipment in the two phases. . Because they expect an operating shortfall the first few years until a '~client base is established, they are asking Andover for some help with their initial outlay on the land or any other assistance. " ' ) I ' ~~ ~ Andover Economic Development Authority Meeting Minutes - March 4, 1997 Page 2 ) (Request Assistance/Medical Clinic, Continued) Mr. Skogerboe explained they propose to build a multi-specialist center with 25 to 30 physicians. They presently have about 1500 Andover residents that utilize their physicians. They primarily use Unity Hospital, and they ask their physicians and employees to live in the community where they work. Their organization is physician owned and physician run. Mr. Hurley stated they looked at several other locations in Andover, but this one fits their needs best because it has a high traffic pattern and is closer to Unity Hospital, as opposed to any where further west which would identify with Coon Rapids Hospital. They do not feel a site further north would support the kind of practice they want to build. They would not be interested in property west of Hanson Boulevard because ambiance is a factor for their setting. Mr. Fursman stated the EDA is land rich and dollar poor. The party who owns the parcel desired by the clinic may be interested in swapping that parcel for one in the commercial center for some type of restaurant and entertainment establishment. If interested, Staff could pursue that idea with all parties involved. It would not obligate the City in any way. If not, the EDA should let these gentlemen know now. \ Mr. Hurley also stated they understand the EDA cannot make a decision ) this evening. They are asking that they be allowed to explore alternatives and bring them back to the Authority. All of the members favored the proposal of the clinic, feeling there is a real need and it would be a great benefit to the City. However, Councilmember Dehn felt that fairness is an issue. What the Authority provides for one business, it should provide to all. Without a policy in place, she did not know how any recommendation could be made. Councilmember Knight did not think fairness was an issue and had no problem exploring options for the clinic. Councilmember Orttel was not in favor of having any more bars in the City. He also felt it is inappropriate making deals when a policy has not yet been formulated. Councilmember Kunza felt a plan is needed before options can be explored. Mr. Brenholdt appreciated the encouragement and warm welcome. They want to serve the citizens in Andover, and they don't want something for nothing. The City wants the area along Bunker Lake Boulevard and Hanson Boulevard to develop. If an expensive, attractive professional building will help improve the neighborhood on the east side of Hanson Boulevard and also help to stimulate future demand on the west side, it will be a win-win situation. If other health care organizations are given similar considerations as they would be given, it would help the neighborhood and they would have no problem with it. " Mr. Carlberg stated Staff is working on designs for the development of j that commercial park and will be looking at policies relating to the use of TIF incentives. Staff will be coming to the EDA relatively soon to address these items. ,-_) U Andover Economic Development Authority Meeting Minutes - March 4, 1997 Page 3 \ ~J (Request Assistance/Medical Clinic, Continued) Councilmember Dehn suggested the Council direct Staff to provide ideas and suggest policies of what types of businesses they would like to see built in the commercial area along Bunker Lake Boulevard and bring it back for the EDA to consider. The others agreed. No further action was taken this evening. MOTION by Dehn, Seconded by Kunza, to adjourn the EDA. Motion carried unanimously. The meeting was adjourned at 12:40 a.m. Respectfully submitted, ·~~~L \~~ella A. Peach Recording Secretary /