HomeMy WebLinkAboutJanuary 5, 1995
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
JANUARY 5, 1995 - MINUTES
A Meeting of the Andover Economic Development Authority was called to
order by Mayor Jack McKelvey on January 5, 1995, 7:42 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, Dave Carlberg
City Administrator, Richard Fursman
Others
AUTHORIZE OFFICIAL BANKS AND DEPOSITORIES
Mayor McKelvey asked that the appointment of officers for the EDA be
reviewed at the next meeting.
/)- MOTION by Knight, Seconded by Jacobson, introducing the Resolution
\. designating depositories of funds and supplemental depositories for
investment purposes only as pertaining to the Economic Development
Authority. (See Resolution EDA ROOl-95) Motion carried unanimously.
GREENWOOD GRAPHICS
Mr. Fursman explained Mr. Chuck Greenwood of Greenwood Graphic Arts is
requesting an extension of the construction completion date on Lot 2,
Block 3, Andover Commercial Park, to January 15, 1998. Apparently that
was his original intent, but the Authority had understood and approved
the financing of the land acquisition over a two-year period with
construction to be completed no later than January 15, 1997. Once the
paperwork was drawn up by the City Attorney, Mr. Greenwood realized the
error and is now asking for an extension to be allowed a three-year pay-
off. He would like to have the lot paid for before beginning
construction to use as an equity base in the financing of the building.
The Authority discussed the wisdom of extending the payment for that
length of time and allowing the lot to remain vacant for that long
versus putting it back on the market. There were reservations because
it would set a precedent. Does the Authority want to have land off the
market and remain vacant for three years? It was noted that the intent
_ is to have additional commercial lots available within the next few
C~ years which may be attractive to Mr. Greenwood then, rather than tie up
this lot. Mr. Fursman thought Staff could look at the future Park and
development area and possibly do a land deal with him on a potential
future lot under similar conditions instead of tying up development now.
On the other hand, this is a good business for the City. It is the type
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Regular Andover Economic Development Authority Meeting
Minutes - January 3, 1995
\ Page 2
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(Greenwood Graphics, Continued)
of industry that doesn't pollute or create a large distribution of
traffic; it will hire up to 15 people and will generate a considerable
amount in property taxes for the City. Attorney Hawkins pointed out
that the TIF district is in place for a specific number of years. It
would be more cost effective for the City to give the lot away and have
a building constructed immediately to begin collecting taxes on it
rather than have someone make payments on it for three years, leaving it
vacant during that time period.
MOTION by Jacobson, Seconded by Dehn, that we authorize the City
Administrator to talk with Mr. Greenwood and express the opinion of the
Authority is reluctant to go three years and to offer other options or
discuss other things that may be available to him or to encourage him to
build in the two-year time period. DISCUSSION: Attorney Hawkins
suggested setting a deadline by which a decision would be made by Mr.
Greenwood. The Authority asked that the Staff discussions with Mr.
Greenwood be done with a report back for the next meeting for further
deliberation. It was reitereated the intent is that unless Mr.
Greenwood agrees to some other proposals to be discussed by Staff, the
Authority would continue to support its original agreement of a two-year
payment with construction completed no later than January 15, 1997.
Motion carried unanimously.
MOTION by Knight, Seconded by Kunza, to close the EDA meeting. Motion
carried unanimously.
The EDA meeting was adjourned at 7:55 p.m.
Respectfully submitted,
~~01 ,
~la A. Peach
Recording Secretary
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