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HomeMy WebLinkAboutMay 2, 1995 o 0 "",::¡;:·~::;~Gï":j:~;"·' '.~",," . (j}.."'. ~ CITY of ANDOVER \..) .L"\. ., 1685 CROSSTOWN BOULEVARD NW. · ANDOVER, MINNESOTA 55304 · (612) 755-5100 ¡""'''''" "...¡' ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MAY 2, 1995 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on May 2, 1995, 8:34 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 Planning· Director, Dick Fursman City Administrator, Richard Fursman Others REQUEST TIF FUNDS/139TH AVENUE SIGNALS Mr. Carlberg explained the Rademacher Companies, Inc., are planning to move their Bill's Superette and G-Will Liquor facilities to new facilities on property located on Round Lake Boulevard between 140th r Lane and 139th Avenue NW. They believe the volume of business would ~ necessitate the installation of a traffic light at 139th, which would be approximately $110,000. They are willing to share in those costs and are asking for financial assistance from the City to cover the balance of the installation costs. The Anoka County Highway Department has stated the traffic count does not warrant a light at that intersection at this time. Joe Nemo, Senior Vice President & General Counsel, Rademacher Companies, Inc. - explained they have not been able to find a way to upgrade their existing buildings, so they are building new structures for Bill's Superette and G-Will Liquors. Their average daily customer count between the liquor store and superette is about 2,500 personal vehicles per day, or 5,000 in and out. To be competitive they will be doubling the fueling points from 8 at Bill's to 16 at the new location, plus add a car wash. They will increase the liquor store from 8,800 to 14,000 feet. with the added traffic that will create plus another 13,000 feet of retail use by other users, they feel there must be a traffic light at 139th. The Highway Department indicated they could have a right-in and right-out entrance on Round Lake Boulevard; but because so much of their business comes from the north, those people would have a difficult time getting back out to proceed south on Round Lake Boulevard without a light. He did not think a light at 139th would create a stacking problem on Round Lake Boulevard. Councilmember Knight felt it would be more practical to run a service r~ road to cover all the businesses along that area. Mr. Nemo felt it I '~ would be difficult to do that, though the intent is to provide access to all the businesses through the parking lot. But that still doesn't address the people using the superette who need a convenient way to get in and out. Just because it doesn't meet warrants doesn't preclude them ( ) I ) --- \.~ Regular Andover Economic Development Authority Meeting Minutes - May 2, 1995 ) Page 2 (Request TIF Funds/139th Avenue Signals, Continued) from having the intersection signalized, but they would have to make independent arrangements to pay for it. Discussion noted that there are other lights along Round Lake Boulevard that do not meet warrants. Mr. Nemo stated the project is estimated to cost $2 million, and they have budgeted about one-third the cost of the light. They probably would not develop the site if the light does not go in. Over time the light would pay for itself. Councilmember Dehn appreciated the light at the existing superette for ease of entering and existing. She felt a light as proposed would be very beneficial to the business and would be a worthwhile investment for Rademacher Companies to consider themselves if the Authority does not agree. Mayor McKelvey noted that 139th does provide another entrance into Woodland Creek. He could agree with the Authority paying for 50 percent of the traffic light to help with the traffic flow out of Woodland Creek. Other Councilmembers agreed. Councilmember Knight stated he would like to see that provision is made for through traffic through that entire retail area, though not necessarily a service road. MOTION by Jacobson, Seconded by Dehn, to authorize Staff and the Attorney to sit down with the applicants to draft a development agreement to outline the cost sharing on the proposed traffic light if \ and when the county does allow it to be put in. It would be contingent ,) upon the county allowing it to be installed. Have them come back to the Authority with the document for us to approve. Money should be out of the TIF funds. Motion carried unanimously. PURCHASE AGREEMENT/SANDEEN PROPERTY Mr. Fursman reported they have negotiated a purchase agreement from Mr. Sandeen and his attorney outlining that the Authority will purchase the property and businesses. The amount was agreed upon by the committee and Mr. Sandeen. The purchase price is $470,000, and it was valued at $278,000 for the land and the building. Attorney Hawkins stated there was a measurement error in the appraisal, so the value changed to $282,000. The additional compensation is for the solarium and a number of other items having to do with the acquisition and relocation benefits, etc. In addition to Mr. Sandeen's business, there was the gun shop and a house with tenants. It is a unique business, and Mr. Sandeen is entitled to some relocation benefits, including financing charges for the new acquisition, legal expenses, lost income, prepayment penalty on the contract for deed, etc. He felt it is a reasonable figure, and he didn't think there was anything in dispute in the purchase agreement. The execution of the agreement is contingent upon the results of the soil borings. He will have someone test bore the site if it has not been sufficiently done so by the EPA. The seller is warranting there are \ no hazardous substances on the property. The property is 2 1/2 acres, ~~) but no closing date has been set because the seller wants to investigate how quickly he can get into another location. It will probably be another three to four months. The Authority will not pay any money other than the earnest money until Mr. Sandeen has relocated. The land '\ <j I "'-_/ Regular Andover Economic Development Authority Meeting Minutes - May 2, 1995 \ Page 3 j (Purchase Agreement/Sandeed Property, Continued) cost comes to $1.12 per square foot which is more than elsewhere because of its frontage on Bunker Lake Boulevard. Mayor MCKelvey stated Mr. Sandeen is talking about starting to construct a building this summer and move into it before winter. MOTION by McKelvey, Seconded by Jacobson, that the Authority purchase the Sandeen property and allow the City Attorney to continue with the purchasing process for the price of $470,000 as per the purchase agreement that we have before us. Motion carried unanimously. MOTION by Knight, Seconded by Kunza, to close the EDA meeting. Motion carried unanimously. The meeting adjourned at 9:17 p.m. ; \ /