HomeMy WebLinkAboutSeptember 12, 1994
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Andover Economic Development Authority Meeting
Monday, September 12, 1994
Andover city Hall
1685 Crosstown Boulevard N.W.
Andover, Minnesota
Call to Order - 5:30 p.m.
1. Award Bid/Grading/park Complex #2
2.
3. Adjournment
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
SEPTEMBER 12, 1994 - MINUTES
A Meeting of the Andover Economic Development Authority was called to
order by Mayor Jack McKelvey on September 12, 1994, 5:46 p.m., at the
Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota.
Present: Councilmembers Jacobson, Perry
Absent: Councilmembers Dalien, Knight
Also present: City Finance Director, Daryl Sulander
City Administrator, Richard Fursman
Others
AWARD BID/IP94-13 AND IP93-7/ANDOVER COMMERCIAL PARK GRADING AND CITY
HALL PARK COMPLEX #2
Mr. Haas explained the difference in the Division II sodding item and
the Division V, Alternate Bid C, is that the contractor would lay the
sod in Division II, but volunteers would be expected to lay it under the
alternate bid. That would be a savings of $17,091. (During the meeting
0 Mr. Haas discussed the Alternate with Mr. O'Toole and Mr. Grabowski of !
the Andover Recreational Development Association, who felt the sod
should be laid by the contractor, not volunteers.)
There was great concern over what items in the bid can be paid with Tax
Increment Financing funds and which ones would need to be paid with City
funds. They did not want to award the bid and later find out that over
a quarter million dollars of the contract must come from City funds,
because that amount of money is not available. Nor did they want to use
TIF money on items that cannot legally be paid from that source. It was
suggested that opinions be solicited from the City Attorney and bond
counsel as to which items in the bid can legally be paid with TIF funds.
The 20 percent rule was mentioned which allows the EDA to spend up to
that amount of TIF funding on park properties. The Authority asked that
both legal and bond counsel comment on the ability to apply that rule as
well.
Staff felt an opinion from the counsels can be obtained rather quickly.
So the project is not delayed, the Authority agreed to award the bid
contingent upon the opinion from counsels that all or a majority of the
cost for the projects can come from TIF funds. Otherwise it is to be
brought back to the EDA for further consideration.
MOTION by Jacobson, Seconded by Perry, the Resolution as presented
accepting the bids and awarding contract for 94-13 and 93-7 as presented
,r"'. with the change in the amount. The number which presently reads
{ 1 $400,323.82 to be changed to read $514,565.83 (which includes Alternates
\J A and B). The Resolution is contingent upon receiving from the City's
legal counsel and the City's bond counsel concurrence that the City can,
through the use of TIF funds and the 20 percent rule, expend the dollars
in this Resolution for the items indicated in the bids. If legal
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Andover Economic Development Authority Meeting
Minutes - September 12, 1994
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(Award Bid/IP94-13 and IP93-7/Commercial Park Grading and City Hall Park
Complex #2, Continued)
counsel and bond counsel determine that significant amounts of the
project cannot be funded with TIF funds and those amounts so determined
are in excess of what is available to the Andover Park Commission, then
the contract would return to the Economic Development Authority for
review before it is given to the contractor. (See Resolution EDA R008-
94)
DISCUSSION: Councilmember Perry was concerned with the balance of the
TIF funds after awarding this project. She wanted to be sure enough
funds remained to proceed with the cleanup in the southern part of the
City, which is the original purpose of those funds. Mr. Fursman stated
the City will be receiving the appraisals on the auto recycling
businesses on September 30; however, he was confident there is enough
funding for both those purchases and these two projects. Also, it is
unlikely that all of the businesses selling to the City will want their
money up front.
Motion carried on a 3-Yes, 2-Absent (Dalien, Knight) vote.
\ MOTION by Jacobson, Seconded by Perry, to adjourn. Motion carried on a
J 3-Yes, 2-Absent (Dalien, Knight) vote.
The meeting was adjourned at 6:18 p.m.
Respectfully submitted,
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Recording Secretary
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