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HomeMy WebLinkAboutJune 6, 1995 o 0 ( .i ~') CITY of ANDOVER · o .... r\',¡¡i!lii! 1685 CROSSTOWN BOULEVARD N.W. · ANDOVER, MINNESOTA 55304. (612) 755-5100 ..",... ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JUNE 6, 1995 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Acting Mayor Don Jacobson on June 6, 1995, 9:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Knight, Kunza Absent: Councilmember Dehn and Mayor McKelvey Also present: City Attorney, William G. Hawkins City Engineer, Scott Erickson City Finance Director¡ Jean Nichols City Planning Director, Dave Carlberg City Administrator, Richard Fursman Others TIF BOND INFORMATION/DISCUSSION ' Mr. Fursman addressed the Authority with a proposal to consider the issuance of an $8,800,000 TIF bond to cover the purchases of the salvage /) yards, the completion of Commercial Boulevard, the purchase and clearing ~ of State tax forfeit property, for site and economic development and for the school district storm sewer project. That amount of debt can be supported by the TIF district to the year 2012. At the present investment, that will exhaust the TIF resources; however, the likelihood of absolutely no further commercial or industrial development in the City is remote. Any further development will add to the TIF income. Mr. Fursman could not guarantee that the funds would be expended in two years to avoid arbitrage; however, there would be no exposure from arbitrage as the earnings over what the bond has to pay would have to be paid back to the federal government. Attorney Hawkins felt that because the size of the issue, the City would have to keep track of the arbitrage. There is a lot of discussions regarding the purchase of the salvage yards, and he felt the money needs to be on hand to purchase them rather than bond for each individual purchase. Mr. Fursman explained by bonding now, the City is protecting itself against any future changes in TrF financing. , Charlie Vieman - asked about the size of the bond, how much is in the TIF fund now and where the TIF funds come from. Mr. Fursman explained the bond would be between $8 and $9 million. There is about $700,000 in the fund now. He also noted the Tax Increment Financing Districts and the tax dollars that go to the TIF fund from those areas. Winslow Holasek - asked if the houses are taxed an additional amount. ~ The Authority explained it is the normal taxes that go into a special ¡ fund. Also, the State supplies the school district with funds to make up for their loss. The TIF Districts cannot be expanded to collect more funds. , \ , ) t~~_) \. "---,,- Andover Economic Development Authority Meeting Minutes - June 6, 1995 ) Page 2 (TIF Bond Information/Discussion) The Authority gave verbal approval for Mr. Fursman to proceed with the preparation of the proposed bond issue, then bring it back fòr action. APPROVE CONCRETE CURBING AND PARKING LOT PAVING/IP94-18 Acting Mayor Jacobson noted the proposal to install concrete curb and gutter for the drive area and parking lot areas adjacent to City Park Complex #1 at an estimated cost of $23,500 using TIF funds. MOTION by Knight, Seconded by Kunza, to so move. Motion carried on a 3- Yes, 2-Absent (Dehn, McKelvey) vote. RIGHT-OF-ENTRY/TIRE SITE Attorney Hawkins reviewed the negotiations with the county for the old "Tire Site". The county is asking $100,000 for it. There is a tremendous amount of work to be done in cleaning the site. The county can't give credit for the cost of clean up until an actual amount is known for that clean up. He does not have a purchase agreement, but he does have a , letter and verbal conversations with the county attorney that the county ) will sell the property to the City with credit for the cleanup work. The request is for permission to enter into an agreement with the county to clean the site. The cost for cleanup will be absorbed by the TIF fund. The City would have to get some bids for cleaning it up. Otherwise it appears unlikely that anything will ever happen with that site. MOTION by Knight, Seconded by Kunza, to enter into an agreement between the City and Anoka County as necessary per EDA Item 26 on the agenda. Motion carried on a 3-Yes, 2-Absent (Dehn, McKelvey) vote. AUTHORIZE PURCHASE OF TAX FORFEIT PROPERTY , Attorney Hawkins reported the county has set the price of $20,000 for the Punkin City site. Any money paid for the site will come back to the City in the form of delinquent taxes, so it will cost nearly nothing or nothing at all. MOTION by Knight, Seconded by Kunza, that we approve the purchase of the Punkin City site at a price of $20,000. Motion carried on a 3-Yes, 2- Absent (Dehn, McKelvey) vote. \ JOHN SANDEEN PROPERTY TESTING \.~- ) Mr. Fursman stated the question of additional testing for hazardous waste on the Sandeen property was raised at the time of the purchase. Mr. Fursman found that to have additional soil borings done on the ( " ì i ! \ .\....-.-' ~. Andover Economic Development Authority Meeting Minutes - June 6, 1995 ) Page 3 (John Sandeen Property Testing/Discussion) property would cost approximately $7,000. Those he talked to have asked why the City wants additional testing. In looking at the report done in 1990, the surface examples and soil borings were all negative, showing no contamination. The history of the property since then indicates there is no reason to believe there would be further contamination of the property. He asked the Authority if there is a need to spend $7,000 for additional soil borings. The Authority discussed the issue, with the majority preferring to spend the $7,000 as further insurance that there is no contamination. Considering the area, it was felt the expenditure is worth ìt to find out prior to the purchase rather than learning after the sale and be responsible for the cleanup. MOTION by Kunza, Seconded by Jacobson, to spend up to $7,000 on additional borings on the Sandeen site for borings done in the most economical way possible. Motion carried on a 2-Yes, I-No (Knight) , 2- Absent (Dehn, McKelvey) vote. MOTION by Knight, Seconded by Kunza, to close the EDA meeting. Motion carried on a 3-Yes, 2-Absent (Dehn, McKelvey) vote. --~ The meeting was closed at 9:43 p.m. Respectfully SUbmit~ \\~~ ê~L Mar lla A. Peach Recording Secretary \ \ \