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HomeMy WebLinkAboutMay 17, 1994 o 0 "".;",,'-';¡:"''''''''''- C} ((J).\ CITY of ANDOVER "r\.",.,.£;:~I,ii" 1685 CROS$TOWN BOULEVARD NW. · ANDOVER, MINNESOTA 55304 . (612) 755-5100 >:':C:::' , ,,:' ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MAY 17, 1994 - MINUTES i A Meeting of the Andover Economic Development Authority was called to order by Mayor Jack McKelvey on May 17, 1994, 8:58 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Councilmembers Dalien, Jacobson, Knight, Perry Absent: None Also present: City Attorney, William G. Hawkins Casserly Molzahn, Inc., Jim Casserly City Planner, Dave Carlberg City Finance Director, Daryl Sulander City Administrator, Richard Fursman Others EXPAND TIF DISTRICT Mr. Fursman reviewed his memo to the EDA on various reasons to expand the Tax Increment Financing District to cover the entire City. An Of advantage of modifying the existing TIF District is that the City can use all the tax increments anywhere within that District. There may be areas in the City where the Council may wish to use TIF funds for sewer extensions, road improvements, soil corrections, and with some limitations, public buildings and parks. Another concern is that there is the possibility that the State Legislature will enact a law that will not allow TIF expansions without county approval. Right now there is only a limited amount of land in Andover's TIF District. His proposal is not to expand that District from which revenues are generated, only the project area to include the entire City. Mr. Fursman stated an update of the funds to be generated from the Tax Increment District is estimated to be $12 million, and that is a conservative figure assuming no other improvements in the Redevelopment District between now and the year 2012, which is very unlikely. With this kind of TIF revenue stream available, he felt it would be prudent to consider expanding the project area. Mr. Casserly explained TIF funds can be used on those public buildings to be used for community and recreational activities, not for buildings to house units of governments or to hold meetings. He stressed the importance of reviewing the projects and plans for the program every year. The proposal is simply to expand the area in which the EDA can do its planning and where the revenues can be spent as a part of this program. Expansion of the project area does not affect the school /~ district and county. He then reviewed the process by which funds are ~ generated in the increment area and its effect on the school district and county, again noting that is a different issue than what the Commission is being asked to consider this evening. (~ (~ Economic Development Authority Meeting Minutes - May 17, 1994 " , Page 2 /, (Expand TIF District, Continued) Commissioner Jacobson was bothered by including the entire City in the project area and then by using the funds for roads. That was not the original intent of the use of the revenues. Mr. Fursman stated revenues generated from these districts in many other cities are used to keep the taxes of their residents down. Expensive road projects, for instance, can be partially paid for with TIF funds and resident participation. For now, he is just asking for permission to proceed with Mr. Hawkins to expand the tax increment financing area and to develop a list of eligible activities for such an area. MOTION by Knight, Seconded by Jacobson, to direct Staff, in cooperation with consultant and City Attorney, to develop some project plans and proposals for the EDA and to set a special meeting to discuss them. Motion carried unanimously. ORDER PLANS AND SPECS/COMMERCIAL PARK/IP94-13 MOTION by Jacobson, Seconded by Perry, the Resolution as presented. (See EDA Resolution R004-94 ordering the improvement of pond / \ construction and regrading of lots, Project No. 94-13 in the Andover ,-~ Commercial Park) Motion carried unanimously. ANDOVER PARK COMPLEX /12/COMMERCIAL PARK Mr. Fursman explained the request to take soils from the Andover Park Complex #2 near City Hall for the soils correction plan for the Commercial Park. The excess top soil from the Commercial Park will then be transferred to the park. This allows the park to be graded and allows the City to get started with the soils correction needed in the Commercial Park. Mr. Casserly has indicated that the use of tax increment financing funds for this park correction and for the correction of the commercial area would be appropriate. The other possibility would be to bring the soils into the Commercial Park from another area, which would be somewhat cheaper; but the benefit to the City of Andover would not be as great as using the park soils. Mr. Davidson stated they are in the process of doing soil borings to determine the amount of soils to be transferred from each site. He guessed the cost to correct the lots within the commercial area would be under $100,000 and that grading of both parks would be under $200,000. Mr. Fursman stated they would come back for final approval once the figures are known. \ MOTION by Knight, Seconded by Jacobson, that we direct the Staff to ) proceed with using the Field of Dreams park for soils to correct the soils problem in the Commercial Park area and proceed with the items on the memo on the back page: * A final grading plan for the Field of Dreams complex will be submitted \ U ' ) \.~ Economic Development Authority Meeting Minutes - May 17, 1994 Page 3 (Andover Park Complex #2/Commercial Park, Continued) * Soils will be extracted and tested from the Commercial Park * Granular material will be extracted from the Field of Dreams area * Granular material will be transported to the Commercial Park for soil correction and compaction * The ball fields will be graded according to the approved plan * Topsoil from the commercial area will be deposited and graded at the ball fields. * Volunteers will be organized to install the sprinkler system * Grass and sod will be planted as required within 14 days following grading Using Tax Increment Financing Funds. Motion carried unanimously. PURCHASE OF AUTO SALVAGE YARDS Mr. Fursman noted the original purpose of the tax increment financing money was to redevelop the auto salvage yard area south of Bunker Lake Boulevard. He asked for permission to begin pursing strategies for the reduction in the number of salvage yard acres. They would begin by identifying the auto salvage yards interested in negotiating with the City, obtaining appraisals on the property identified, reviewing all ¡ environmental data on the site, then preparing a report for the Board. MOTION by Jacobson, Seconded by Perry, that the Board of Commissioners authorize Staff to identify any auto salvage yards interested in negotiating with the City in either selling or moving and obtain appraisals on the property they do identify; and authorize Staff to look at any and all environmental data pertaining to those sites, and authorize them to prepare a report for future consideration by the Board of Commissioners, and ln that report provide action plans for us. Motion carried unanimously. MOTION by Dalien, Seconded by Perry, to close the EDA meeting. Motion carried unanimously. The meeting was adjourned at 9:47 p.m. Respectfully SUbmitted~. \{\.~ ~~ "........... Marcella A. Peach Recording Secretary \ i ,