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HomeMy WebLinkAboutNovember 21, 1995 , ¡ ,,-j \" / ~ 01 ANDOVER 1685 Crosstown Blvd. N.W. . Anoka, Minnesota 55303 · (612) 755-5100 , ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 21, 1995 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on November 21, 1995, 8:10 p.m. , at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Dehn, Jacobson, Knight, Kunza Absent: None Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson City Finance Director, Jean McGann City Administrator, Richard Fursman Others PURCHASE ANDOVER AUTO PARTS Attorney Hawkins explained an agreement has been reached with Robert and Bonnie Pears, owners of Andover Auto Parts. The property is currently occupied by Jerry Haluptzok. The purchase price is $259,605, plus the City will pay the assessments for Commercial Boulevard and the improvements put in by the City in the last year. An issue in the past has been the $10,000 interest on the assessments. The Pears' have agreed to pay that interest. The closing date is set for January, but the City will enter into a lease with Mr. Haluptzok allowing him to stay there until the end of May. Mr. Haluptzok will be paying rent during that time and will vacate the premises and all automobiles by May 31. The amount of the rent will probably be $1,600 month, which is what he is paying now. Mr. Hawkins will draft a lease agreement and negotiate the rent, which will be brought back to the EDA for action. Councilmember Jacobson questioned Items d and e on Page 4, as it appears all equipment must be removed prior to closing. How will Mr. Haluptzok be able to operate without equipment? Mr. Hawkins explained those items refer to the equipment owned by Mr. Pears personally, not those of Mr. Haluptzok. Mayor McKelvey asked for a motion to enter into a purchase agreement with Mr. and Mrs. Pears. MOTION by Dehn, Seconded by Kunza, to so move. Motion carried unanimously. EXPAND EDA Mr. Fursman asked the EDA to consider expanding the Authority to appoint citizens. The thought is to include individuals with backgrounds which could be helpful in making decisions on the future economic development / of the City. Councilmember Jacobson was concerned that certain expenditures of the TIF funds require a 4/5 vote of the Authority. If the EDA is expanded by two more people, would the vote then need to be 6 out of 7 members? Secondly, he recommended one of the members be the ~) ~~ Regular Economic Development Authority Meeting Minutes - November 21/ 1995 Page 2 " ) (Expand EDA/ Continued) chairperson of the Planning and Zoning Commission because of the planning that goes into economic development. He suggested the second person be someone experienced in economic development activities. A drawback to adding citizens to the EDA is the meeting times. It may not be convenient for them to attend Council meetings and have to wait until the EDA meets. Mr. Fursman stated an idea may be to have the EDA meet prior to the City Council meeting once a month, starting at 6 p.m. Or start the EDA at 7 and change the regular Council meeting to 7:30 or 8 p.m. The EDA items would be handled in front of the Council agenda. Mr. Hawkins stated the EDA By-Laws would be changed to reflect the new membership and a change in the vote requirement. Where it now reflects a 4/5 vote required, it would require an extraordinary majority requirement of 5 out of 7 votes. Several members felt it may be unnecessary and too difficult to attend a 6 p.m. meeting once a month. MOTION by Knight, Seconded by Kunza, to enlarge the EDA to seven. That one of those be the Chairman of the Planning and Zoning Commission. The other being an applicant from the community with experience in financial matters. That the majority be left as 5 in all voting; and that the EDA have a special meeting prior to the City Council each third meeting if ) there are things to consider. The By-Laws of the EDA be changed to reflect those changes. AFTER DISCUSSION, Councilmember Knight amended the motion to "the EDA meeting would be scheduled at the head of the Council agenda when scheduled as needed. Where an extraordinary vote is needed, now we would make it five out of seven; but the other matters would require a simply majority as it is now". Motion carried unanimously. BEST AUTO PARTS Mr. Fursman recalled the EDA authorized a study of Best Auto Parts for soils contamination. Small levels of contamination were found in the ground water directly below some contaminated soil samples. The City is being advised to do further study and have water samples taken via a different method, as it may be possible that the first sample may have been contaminated because of its method of collection. The contamination was found at only one source on the entire site. It will take a few months until anything conclusive is determined. If there is contamination because of something in the past, the WDE Group would have to assume all responsibility for the clean up. The WDE Group is the responsible party through 1997, and their action plan calls for continuous monitoring of the site through then. The WDE Group will be approaching the EPA in Chicago, and he thought they will recommend additional wells be drilled and further tests to see if the level of ,I contamination is something to be concerned with. , / . ) \..-- Regular Economic Development Authority Meeting Minutes - November 21, 1995 '. Page 3 I (Best Auto Parts, Continued) In the mean time, the owners of Best Auto Parts have completely cleaned out the lot, liquidated their inventory and their building and are anxious to start business at their new location. The people at the new location will not close because Best Auto Parts does not have any money to close with. Mr. Fursman believed they have been operating in good faith. The owners have agreed to an escrow for any potential cleanup. The City is developing an escrow account to be held until an all clear or action plan on how to deal with the hazard is received from the EPA on the additional studies. Once that is received, the escrow would be released. Mr. Fursman proposed $40,000 in escrow. He based that on the fact that the clean up of the ATV site, which consisted of taking several inches of dirt off of the entire property and hauling it away, much of it out of state, cost $63,000. The potential hazard at Best Auto Parts seems minimal compared to that. If the EDA approves, the sale will be closed with Best Auto Parts. Attorney Hawkins advised potentially there is some exposure, but the best indications are that it isn't likely the case. He is comfortable with this procedure, and Mr. Fursman appears to be satisfied with the $40,000 figure based on the clean up of the ATV site. However, there is / no guarantee that the escrow amount will be enough. MOTION by McKelvey, Seconded by Jacobson, to proceed with the buyjng of the Best Auto Parts with the holding of $40,000 in escrow for any possible clean up costs. Motion carried unanimously. MOTION by Dehn, Seconded by Knight, to adjourn. Motion carried unanimously. The EDA meeting was adjourned at 8:40 p.m. Respectful~, ~~L Ma ella A. Peach Recording Secretary )