Loading...
HomeMy WebLinkAboutJune 9, 1993 o 0 Q ~ -'~~) CITY of ANDOVER :oLir\mbOVER ECONOMIC DEVELOPMENT COMMITTEE - JUNE 9, 1993 MINUTES The Monthly Meeting of the Andover Economic Development Committee was called to order by Mayor Jack MCKelvey on June 9, 1993, 7:40 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Members present: Mike Auger, Larry Dalien, Robert Nowak, Rebecca Pease Members absent: Howard Neisen, Bill Coleman, Mike Knight, Gregg Kroll Also present: City Planner, Dave Carlberg APPROVAL OF MINUTES May 12, 1993: Correct as written. MOTION by Dalien, Seconded by Auger, approval of the Minutes. Motion carried on a 5-Yes (McKelvey, Auger, Dalien, Nowak, Pease), 4-Absent o (Neisen, Coleman, Knight, Kroll) vote. COMMERCIAL PARK LOT PURCHASE DISCUSSION Hr. Carlberg reported the representatives of "For Kids Only" have decl i-ïled the Committee's recommendation to purchase Lot 3, Block 3 for their day care facilities. They are proposing instead to purchase Lot 3, Block 1, which is almost 1.2 acres in size. Jud,y Gieske and Lauri Pfeiffer - represented "For Kids Only". Ms. Gieske stated they polled the parents of the children they care for, and the majority preferred Lot 3, Block 1 because of its easy access from the main roads. That lot also lends itself better to their layout with a playground all around the building. Plus the southern lot proposed by t.he Committee would be off the path enough where they would be difficult to see because of the big buildings around it. They have 113 children enrolled, and they are full. Hopefully they will be able to increase that with a bigger building and more playground. They are not concerned about the traffic because the once the children are there, they will be either inside the building or in the playground immediately adjacent to it. 'rhere is no need to go outside of the fenced area. Plus the chi,ldren love to watch the trucks coming and going and there is the pond on the north side. Ms. Pfeiffer stated at first they thought they would need both Lots 3 r-; and 4 of Block 1; but after going into greater detail on their plan, ~ they find they don It need both. They prefer Lot 3 because of the exc~ssive traffic on the corner of Lot 4. , ( ) ',- ) '--./ Andover Economic Development Committee Minutes - June 9, 1993 Page 2 I (Commercial Park Lot Purchase Discussion, Continued) Ms. Gieske explained there would be no parking on the street. They would have enough parking for their employees plus for parents dropping off or picking up their children. Parents are usually there for not more than four or five minutes. They have between 11 and 12 Staff at any one time. They would like to have a U-shaped driveway to avoid congestion and as a safety factor. Mr. Carlberg stated the ordinance does not directly address day care centers; so in the review process, the Andover Review Committee will have to determine the number of parking spaces required to accommodate employees and clientele. Also, only one access per road frontage is allowed, so they may have to vary from that for a U-shaped driveway. Mayor McKelvey thought that most day care centers have two driveways for traffic. He has also observed that there is rarely more than five or six parents dropping off or picking up children at a time. Ms. Gieske stated their present lease is up in June, 1995. They propose purchasing this lot, but not to start building until October, 1994. The size of the building is required to be 35 square feet per licensed child. She estimated about half of their employees are Andover residents. The Commission determined the size of the building desired \ will adequately fit on Lot 3, Block 1. They would be allowed to fence I right to the property line. The Commission generally agreed to the proposal to sell Lot 3, Block 1. MOTION by Nowak, Seconded by Pease, recommend that Lot 3, Block 1 of the Commercial Park be sold to "For Kids Only", Inc. Motion carried on a 5-Yes (McKelvey, Auger, Dalien, Nowak, Pease) , 4-Absent (Neisen, Coleman, Knight, Kroll) vote. Discussion then centered on determining a cost for the lot. Mr. Carlberg stated the first lots were sold at $0.65 square foot and negotiated costs for the connection charges for sewer and water. The last few lots have been sold at $0.55 square foot with no negotiations on connection charges. For Lot 3, Block 1, the cost would be $31,720 for $0.65 s. f. and $26,840 for $0.55 s.f., for a difference of $4,880. He reviewed the breakdown of the various fees, with the end result based on what was done on the past being a total cost of $7,298 for the various fees. The Committee debated a reduction in the cost per square foot of the lot versus a negotiation for connection charges and what was done in the past. Ms. Gieske preferred a negotiation in the connection charges. She asked if the City offers terms for the payment. Or they would be willing to pay $10,000 down if it would help their negotiations for the lot. That additional money can then be invested by the City. Mr. Carlberg stated the City is not in the financing business, that the firms are expected "- to secure their own financing. The receipt of a larger down payment has J not been done in the past. The $1,000 down required is the earnest money on the lot to hold it until the final papers are signed. .-- ) u ~- Andover Economic Development Committee Minutes - June 9, 1993 , Page 3 " ) ~ (Commercial Park Lot Purchase Discussion, Continued) One option suggested by the Committee would be to eliminate the sewer and water connection charges but to still require the building permit and other fees. Ms. Gieske was concerned about not having any control over the fees and, consequently, over the amount of their loan. They would prefer a fixed negotiated amount so they know exactly what they are liable for. The Committee stated there probably would not be a large increase in the amount of the fees, but there may be some increase. Ms. Gieske asked if they could pay the balance in October, 1994, when they start construction. The Committee noted the past sales have been completed within 60 days of signing the purchase agreement, though they understood the position of the day care center. The Committee thought an exception could be made but felt a specific date should be agreed upon for closing the agreement so the City doesn't potentially have the purchase agreement for years. Mayor McKelvey suggested the package include the specific fees and connection charges that would not change, so they have an exact package of costs at the time of the down payment. In continuing the discussion on negotiating the costs, Mr. Auger ) prefeITed that a specific policy be established so that all potential buyers are treated the same. MOTION by Auger, Seconded by Dalien, to offer the sale of Lot 3, Block 1 for $0.55 square foot plus connection charges, and there would be no lIlcrease in the connection charges at the time of the final payment. DISCUSSION: Mr. Carlberg estimated the cost would be $26,840 for the land and $7,298 for the connection charges, for a total of $34,138 as the price of the lot paid at the time of construction. Ms. Gieske asked if there is some type of easement for a sign on Bunker Lake Boulevard. Mr. Carlberg stated the City can look at that. Some parks have signs on the major roads indicating the businesses in the COTrL,'Tlercial Park. Mayor McKelvey felt there may be a possibility of putting a temporary one on the corner. The Committee also agreed the Attorney should establish a closing date in the agreement, but left it to the Staff and the Attorney to set a date that is reasonable. Motion carried on a 5-Yes (McKelvey, Auger, Dalien, Nowak, Pease) , 4- Absent (Neisen, Coleman, Knight, Kroll) vote. PURCHASING OF AUTO RECYCLING/JUNKYARDS Mayor McKelvey stated he approached the parties at Mom's Auto Body and ) Andover Auto indicating the Council has requested letters from them as to what they would be willing to sell their businesses for. He has not , / J yet received those letters. There is a possibility another business may be going tax forfeit along Bunker Lake Boulevard, which would mean the City may be able to clean up a large portion of that area. No action was taken by the Committee. " '\ "- i i ) '~./ \...J Andover Economic Development Committee Minutes - June 9, 1993 '\ Page 4 ) MARKETING BROCHURE DISCUSSION Mr. Carlberg had a sample of a marketing brochure prepared by Greg Knoll. The brochure consists of a green folder with gold lettering in which a sheet about the Commercial Park printed on buff colored paper and an updated residents' pamphlet can be added. There is also an insert area for calling cards. The cost of 500 residents' pamphlets, 250 commercial sheets, and 250 folders comes to $1,020. The Committee liked the idea of a folder and generally agreed to proceed. Mr. Carlberg stated he will check with the Finance Department to determine how many bids are needed and will obtain other bids if necessary. OTHER BUSINESS The Committee agreed to meet again around the second week in August. Hr. Carlberg will inform everyone of a specific date. MOTION by Pease to adjourn. Motion carried on a 5-Yes (McKelvey, Auger, Dalien, Nowak, Pease) , 4-Absent (Neisen, Coleman, Knight, Kroll) vote. i / The meeting was adjourned at 9:10 p.m. Respectfully submitted, ~ 0:"~L Marcella A. Peach Recording Secretary \ \. j