HomeMy WebLinkAboutMay 17, 1994
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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.
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Economic Development Authority Meeting
Minutes - May 17, 1994
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, Page 2
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(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
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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~.
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Marcella A. Peach
Recording Secretary
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