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Home My WebLink AboutEDA - October 18, 2022NO DVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING October 18, 2022 6:00 p.m. Conference Room A and B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (August 16, 2022 Regular) 3. Redevelopment Updates (Verbal) 4. Commercial Updates 5. Update - EDA Special Revenue Fund & Tax Increment Projects Capital Project Fund 6. Approve LMCIT Liability Coverage - EDA 7. Other Business 8. Adjournment C I T Y O F ND OVE (R) 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Economic Development Authorit ��\\ CC: Jim Dickinson, City Administrato FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: October 18, 2022 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: August 16, 2022 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: Minutes S 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING- AUGUST 16, 2022 - MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Sheri Bukkila August 16, 2022, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Jamie Barthel, Ted Butler, Valerie Holthus, Randy Nelson, Kari Kafer and Greg Mueller Absent: None Also present: EDA Executive Director, Jim Dickinson Community Development Director, Joe Janish 24 APPROVAL OFMINU 25 26 June 21, 2022, Regular) 27 28 Motion by Butler, Secon 29 unanimously. 30 31 EDA 2023 BUDGETDi 32 33 Mr. Dickinson stated the 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 August. The Mr. Dickinson reviewed the 20, significantly. as written. approve the minutes as written. Motion carried the EDA is to review a preliminary budget in is in November. budget documents. Pointing out expenditures are down Mr. Dickinson indicated the Bunker Lake Boulevard median project will take place yet this year, the medians will be filled in with concrete. Mr. Dickinson stated funds will be allocated for the Andover Home Improvement Program. REDEVELOPMENT UPDATES Mr. Janish stated the one tenant that refused to sign a lease has been evicted. He reviewed the properties owned by the EDA and the number of tenants in each building. Andover Economic Development Authority Meeting Minutes —August 16, 2022 Page 2 1 Mr. Janish indicated the asbestos has been removed from a vacant property owned by the EDA. 2 The Fire Department and Anoka County Sheriffs Office will use the building for training. After 3 that, staff will go out for RFPs for demolition of the building. 4 5 Mr. Janish stated 2621 Bunker Lake Boulevard owned by the EDA is also vacant. The building 6 was tested for asbestos, the asbestos will be removed, and the building will be demolished by the 7 end of the year. 9 COMMERCIAL PROJECTA CTIVITY 10 11 Mr. Janish updated on the following: 12 13 Hearth Development, 1714 Bunker Lake Boulevard — Loco Fitness and Nystrom and 14 Associates are renting space. Milk Moms is also utilizing a portion of the building for retail 15 storage. In May a tobacco license was issued for a retail smoke shop in suite 106, that shop has 16 yet to open. 17 18 Clocktower Commons, 15190 Bluebird Street — The final building pad location interest is 19 relatively low at this point. 20 21 Andover High School, 2018 Additions and Renovations, 2115 Andover Boulevard — The high 22 school is planning to add an additional garage near the football fields. 23 24 Interest in Hughes Industrial Park — Interest in this area comes and goes. A 10 -acre property 25 east of the park has been on the market and City Council reviewed with the landowner desired 26 roadway connections through the parcel at a past work session. The property has been purchased 27 by the owners of Best Outdoor Services which currently owns a lot nearby. In time they would 28 like to expand to this location but for now they are aware that the property is currently zoned 29 residential and would have to follow a process for any type of expansion. Staff met with the new 30 owners and they "bounced" some ideas off of staff. They are looking at ways to allow for outside 31 storage, continue to rent out the home and not have to build the roadway. Their current plans are 32 to continue to rent out the home. 33 34 ABCMini-Storage/T-Squared (self -storage), 13624 Hanson Boulevard — City Council approved 35 a CUP for additional mini -storage on a portion of this lot. The buyers of the property had intended 36 to expand the mini -storage. The Building Department is working with the applicant on structural 37 drawings for review. Water, sewer, and site prep is completed. Due to the increase in materials 38 and the timing of approval they are waiting to start construction. Materials are expected to arrive 39 in September and staff is working with developing a construction schedule with them. 40 41 Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to 42 locate to in Andover. 43 44 TCF Site — At this time the city is in receipt of two conditional use permit applications related to 45 having a drive through at this location. The current owner is looking at having two separate Andover Economic Development Authority Meeting Minutes —August 16, 2022 Page 3 1 buildings with their own drive through. 2 3 Andover Crossings, 71h Avenue and Bunker Lake Boulevard — The development is under 4 construction. 5 6 Taco Bell, 71' Avenue and Bunker Lake Boulevard — City staff has completed a Commercial Site 7 Plan (CSP) for a Taco Bell. The drive through has also received a Conditional Use Permit (CUP). 8 9 Westgate Senior Living, 7' Avenue and Bunker Lake Boulevard — This is under construction. 10 11 Aurora Vista, 711 Avenue and Bunker Lake Boulevard — This is under construction. 12 13 Holasek Property — Staff has been in contact with a multi -family housing developer on this 14 particular property. The multi -family developer has taken comments from the City Council during 15 a work session and are researching options available to add additional commercial to the site. The 16 developer also held two neighborhood meetings that a staff member was present at. 17 18 Andover City Council approved a Comprehensive Plan Amendment, City Zoning Code 19 Amendment and rezoning of the parcel on August 4, 2022, the amendment has been submitted to 20 the Met Council. The applicant will still need to pursue a Planned Unit Development (PUD), 21 preliminary and final plat for the property. 22 23 Housing— Developers are looking for additional land for future developments. Several developers 24 are trying to keep an inventory of lots but are having difficulty in finding locations. Several sites 25 are being reviewed and looked at. In 2021 there were 140 new housing starts. So far this year we 26 have had 61 permits issued for new housing, 1 apartment (150 units) and an assisted living facility 27 (32 units). 28 29 Fields of Winslow Cove — Trunk utility work is complete on the west side of Prairie Road and 30 utilities are currently being installed for Phase 1 on the east side of Prairie Road. 31 32 Anoka County Sheriffs Office, 13301 Hanson Boulevard — Staff received a Commercial Site 33 Plan (CSP) for an expansion of parking at the property. This was recently signed off on by staff. 34 Construction expected soon. 35 36 Anoka County 911 and Radia Building - This is currently in review for the Commercial Site Plan 37 (CSP) and the Andover Planning and Zoning Commission considered a Conditional Use Permit 38 for an additional fuel tank for the facility on August 10, 2022 with City Council consideration on 39 August 16, 2022. 40 41 Bunker Lake Boulevard and Crosstown Boulevard Message Board Replacement — The 42 replacement reader board is in and working as expected. 43 44 Overall Marketing — City staff continues to work with parties interested in investing in Andover 45 and marketing all commercial sites. Staff continues to work with Anoka County Regional 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Andover Economic Development Authority Meeting Minutes —August 16, 2022 Page 4 Economic Development (ACRED) on marketing of the community and Anoka County. Andover Post Office, 15219 Bluebird Street — Mr. Dickinson indicated he has followed up with the Regional Post Office, they have reviewed the site, sent out their architects and have put together drawings, but the project has been stalled because of their strategic plan related items. They indicated they would be moving forward with the project at some point. OTHER BUSINESS There was none. ADJOURNMENT Motion by Holthus, Seconded by Kafer to adjourn. Motion carried unanimously. The meeting adjourned at 6:41 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Conuniss: CC: Jim Dickinson, Executi, FROM: Joe Janish, Community SUBJECT: Review Commercial Project Activity DATE: October 18, 2022 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCIAL PROJECTS • Clock Tower Commons —The final building pad location interest is relatively low at this point. Interest in Hughes Industrial Park — Interest in this area comes and goes. A 10 acre property east of the park had been on the market and City Council reviewed with the landowner desired roadway connections through the parcel at a past work session. The property has been purchased by the owners of Best Outdoor Services which currently owns a lot nearby. In time they would like to expand to this location but for now they are aware that the property is currently zoned residential and would have to follow a process for any type of expansion. Staff met with the new owners and they "bounced" some ideas off of staff. They are looking at ways to allow for outside storage, continue to rent out the home and not have to build the roadway. Their current plans are to continue to rent out the home. • ABC Mini-Storage/T-Squared (self -storage) — City Council approved a CUP for additional Mini - storage on a portion of this lot. The buyers of the property had intended to expand the mini -storage. The Building Department is working with the applicant on structural drawings for review. Water, Sewer and site prep is completed. Due to the increase in materials and the timing of approval they are waiting to start construction. Work is occurring on the site. • Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate in Andover. • TCF Site —At this time the city is in receipt of two conditional use permit applications related to having a drive through at this location. The current owner is looking at having two separate buildings with their own drive through. • Andover Crossings — The development is under construction. • Taco Bell (Andover Crossings) — City staff has completed a Commercial Site Plan (CSP) for a Taco Bell. The drive through has also received a Conditional Use Permit. The building permit is ready to be issued. • Westgate Senior Living (Andover Crossings) —This is under construction. • Aurora Vista (Andover Crossings) - This is under construction. • Holasek Property (near City Hall) — Andover City Council approved a Comprehensive Plan Amendment, City Zoning Code Amendment and rezoning of the parcel on August 4, 2022. The applicants will still need to pursue a Planned Unit Development (PUD); Preliminary and Final Plat for the property. The applicants have asked the City to delay action on the official adoption of the Comprehensive Plan as they continue to evaluate the current market conditions. • Housing — Developers are looking for additional land for future developments. Several developers are trying to keep an inventory of lots, but are having difficulty in finding locations. In 2021 we had 140 new housing starts. So far this year we have had 83 permits issued for new housing, 1 apartment (150 units), and an assisted living facility (32 units). • Fields of Winslow Cove —The wear course is expected to be installed and followed up with private utilities in the next few weeks. • Sheriffs Office — The City of Andover has received a Commercial Site Plan (CSP) for an expansion of parking at the property. Staff was made aware the construction is complete, and waiting for some of the grass to germinate prior to inspection. • Anoka County 911 and Radio Building — This is currently in review for the Commercial Site Plan (CSP), City Council approved a request for a fuel tank to be on the property on August 16, 2022. • Beberg Landscaping — The property is listed for sale as the owner has closed the business. • Overall marketing - City Staff continue to work with parties interested in investing in Andover and marketing all commercial sites. Staff continues to work with the Anoka County Regional Economic Development (ACRED) on marketing of the community and Anoka County. 11171'', rVJ 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: EDA Special Revenue Fund & Tax Increment Projects Capital Project Fund DATE: October 18, 2022 INTRODUCTION The EDA is requested to receive a brief presentation on the EDA Special Revenue Fund and the Tax Increment Projects Capital Project Fund. DISCUSSION The Executive Director will use the attached documents as the basis for the presentation and to facilitate discussion: 1. EDA Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balance 2. EDA Budget Detail Worksheets 3. Tax Increment Projects Fund Statement of Revenues, Expenditures and Changes in Fund Balance 4. Fund Balance Analysis — TIF Project Accounts 5. October 2022 TIF District Status 6. TIF Rental Properties ACTION REQUESTED a presentation, discuss, and provide direction to staff. submitted, City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ Actual 1 Adopted Estimate 1 Adopted Description 2021 2022 2022 2023 Fund Balance, January 1 $ 153,980 $ 143,524 $ 143,524 $ 206,838 Revenues Charges for Services 27,527 15,000 15,000 15,000 Investment Income (440) 2,000 2,000 2,000 Miscellaneous 1,308 - - Total Revenues: 28,395 17,000 17,000 17,000 Other Sources Transfers In 150,000 150,000 - Total Revenues and Other Sources: 28,395 167,000 167,000 17,000 Total Available: 182,375 310,524 310,524 223,838 Expenditures Personal Services 3,787 7,536 7,536 7,536 Supplies and Materials 4,097 18,900 18,900 18,900 Purchased Services 23,883 213,400 63,400 83,500 Other Services and Charges 7,084 13,850 13,850 14,100 Total Expenditures: 38,851 253,686 103,686 124,036 Other Uses Transfers Out - - - - Total Expenditures and Other Uses: 38,851 253,686 103,686 124,036 Fund Balance, December 31 $ 143,524 $ 56,838 $ 206,838 $ 99,802 Change in Fund Balance $ (10,456) $ (86,686) $ 63,314 $ (107,036) -7% -60% 44% -52% Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure HiehliQhts 2023 includes a new Home Improvement Program to assist in exterior home improvements within the City. 2022 included the medians along Bunker Lake Boulevard to be filled in with concrete ($150,000) through a transfer from the General Fund. It also included a monument entrance sign. EDA Budget provides for ongoing maintenance around the Andover Station Development area. Department Head: City Administrator General Activity Description To provide for the quality development of commercial and industrial properties to ensure a strong, viable and diversified tax base. Process Used Promotion and expansion of the commercial and industrial tax base through the development and redevelopment of land. The EDA is the primary authority involved in managing the City's four Tax Increment Financing (TIF) Districts. The EDA monitors and initiates the activities within the TIF Districts to reach the goals of the TIF plans. ADOPTED 2023 BUDGET CITY OF ANDOVER, MINNESOTA City of Andover Budget Detail for all Object Codes (List ead - -'se account in;:. : ,ally with spec ,,:aJ) Department / Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested 2022 2023 Budget Adjustment Total 2023 Request Priority 1 through 5 1 -high : 5 -low 61005 SUPPLIES -GENERAL 2,000 2,000 paper/promotions supplies 0 0 0 0 Total 2,000 0 2,000 61130 R & M SUPPLIES - LANDSCAPE 10.000 10,000 median expenditures 0 0 0 0 Total 10,000 0 10,000 61310 MEALS / LODGING 700 700 Special events participation - Staff/Commission 0 0 0 0 Total 700 0 700 61315 CONTINUING EDUCATION 1,500 1,500 Training opportunities - Staff/Commission 0 0 0 0 Total 1,500 0 1,500 61320 ANNUAL DUES / LICENSES 1,500 1,500 Chamber of Commerce Dues 0 0 -Anoka Area & Metro North 0 0 0 0 Total 1,500 0 1,500 61405 POSTAGE 1,000 1,000 Newsletter Publication & Mailings 0 0 0 0 Total 1,000 0 1,000 61410 TRANSPORTATION / PARKING 2,200 2,200 Staff/Commision Travel 0 0 Executive Director %allocation 0 0 0 0 Total 2,200 0 2,200 62005 ELECTRIC 7,000 1 7,000 Andover Station Area Street Light Cost Sharing 0 1 0 0 0 Total 7,000 0 7,000 62100 INSURANCE 5,250 5,250 Risk Management/LMCIT Premiums 0 250 250 0 0 Total 5,250 250 5,500 62210 COMPUTER SERVICES 1,600 1,600 Central systems - Server/email/imaging/etc. 0 0 0 0 Page 1 of 2 City of Andover Budget Detail for all Object Codes (List each expense acco:, with specific cost detail) Department I Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested 2022 2023 Budget Adjustment Total Priority 2023 1 through 5 Request 1 -high : 5 -low Total 1,600 0 1,600 63005 PROFESSIONAL SERVICES 3,500 3,500 Audit - LB 2,400 100 2,500 0 0 Total 5,900 100 6,000 63010 CONTRACTUAL SERVICES 1,000 1,000 Landscaping @ Andover Station - assoc membership 2,000 2,000 Maintenance - Andover Station Area 10,000 10,000 Partnership opportunities - EDA Discretionary 10,000 10,000 Home Improvement Program 50,000 50,000 Community Monument Entrance Signs 30,000 (30,000)1 0 Bunker Lake Blvd Concrete Median 150,000 (150,000)1 0 Total 203,000 (130,000) 73,000 63015 ATTORNEY 2,000 2,000 0 0 0 0 Total 2,000 0 2,000 63025 PUBLISHING 2,500 2,500 Tax Increment Reporting 0 0 0 0 Total 2,500 0 2,500 Grand Total for all Expenditures 1 $246,150 ($129,650) $116,500 Page 2 of City of Andover Capital Projects Funds Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Tax Increments Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,381,678 $ 1,406,384 $ 1,406,384 $ 1,076,384 103,474 Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2021 2022 2022 2023 Fund Balance, January 1 Revenues Tax Increments Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ 1,381,678 $ 1,406,384 $ 1,406,384 $ 1,076,384 103,474 100,000 100,000 (24,467) 35,000 15,000 204,476 100,000 140,000 283,483 235,000 255,000 283,483 255,000 235,000 1,665,161 1,641,384 1,661,384 258,777 235,000 235,000 - 450,000 350,000 258,777 685,000 585,000 258,777 585,000 685,000 $ 1,406,384 $ 956,384 $ 1,076,384 Change in Fund Balance $ 24,706 $ (450,000) 2% -32% $ (330,000) -23% 100,000 20,000 520,000 640,000 640,000 1,716,384 258,000 800,000 1,058,000 1,058,000 $ 658,384 $ (418,000) -39% Fund: 4501 Cost Center: Tax Increment Projects Activity Type/Code: Capital Projects Expenditure Hlahli¢hts 2023 Budgeted expenditures include: Redevelopment Site Purchases $ 800,000 Pay -As -You -Go Note 65,000 Rental Property Expenditures 150,000 TIF Administration 43,000 $ 1,058,000 2022 Budgeted expenditures include: Redevelopment Site Purchases $ 450,000 Pay -As -You -Go Note 65,000 Rental Property Expenditures 150,000 TIF Administration 20,000 $ 685,000 TIF District 1-1 was decertified in 2012 and TIF District 1-2 was decertified in 2014. TIF District 1-3 and TIF District 1-4 was decertified in 2016. Department Head: Finance Director General Activity Description The Tax Increment Projects Fund accounts for activities in TIF districts 1-1, 1-2, 1-3, 1-4, 1-5 and 1-6 and all TIF land sales and expenditures to reach the goals of the TIF district plans. Process Used Promotion and expansion of the commercial / industrial tax base through redevelopment of land. ADOPTED 2023 BUDGET CITY OF ANDOVER, MINNESOTA October 2022 Year Potential Land Sales CITY OF ANDOVER Fund Balance Analysis - TIF Project Accounts Districts 1-1 $ 1-2 TIF Potential Projects Expenses 4-plex 2-plex TIF Project Account Interest Fund Balance 12/31/2021 $ 1,334,250 2022 - (60,000) (350,000) 924,250 2023 400,000 (65,000) (450,000) (350,000) 459,250 2024 150,000 (75,000) (450,000) 84,250 2025 - (84,250) - 550,000 (284,250) (900,000) (700,000) Budgeted at: $450k each $350k each " $25,000 has been designated for landscaping improvements in the Building Fund for Andover Station Outlot E. Year Property Owned by Andover EDA Purchased 2600 138th Ave NW (quad) vacant lot 2011 2543 Bunker Lake Blvd NW (quad) rental 2017 2557 Bunker Lake Blvd NW (quad) vacant lot 2017 2526 138th Ave NW (quad) vacant lot 2017 2542 138th Ave NW (quad) rental 2018 2527 Bunker Lake Blvd NW (quad) rental 2020 2556 138th Ave NW (quad) rental 2020 2513 Bunker Lake Blvd (twin) rental 2020 2621 Bunker Lake Blvd (quad) rental 2020 2607 Bunker Lake Blvd (quad) rental 2020 29-32-24-42-0006 Round Lake Blvd vacant lot 2021 2503 138th Ave NW (twin) rental 2022 October 2022 Redevelopment District 1-5 Arbor Oaks fund 4515 Tax 15 yr Pay -As -You -Go Note: $540,000 TIF Contract Tax TIF Potential TIF Potential Increment Project Account Year Land Sales Expenses Projects Revenue Xfer In /(Out) Fund Balance 12/31/2021 21,460 (42,737) 2023 $ 2022 - (7,324) (65,918) 73,242 30,740 2023 - (7,324) (65,918) 73,242 - - 2024 - (7,324) (65,918) 73,242 - - 2025 - (7,324) (65,918) 73,242 - - 2026 - (7,324) (65,918) 73,242 - - 2027 - (7,324) (65,918) 73,242 - - 2028 - (7,324) (65,918) 73,242 - - 2028 final year of Pay -As -You -Go Note 2029 - (7,324) - 73,242 - 65,918 2030 - (7,324) - 73,242 - 131,836 2031 - (7,324) - 73,242 - 197,754 2032 - (7,324) - 73,242 - 263,672 2033 - (7,324) - 73,242 - 329,590 2034 - (7,324) - 73,242 - 395,508 2035 - (7,324) - 73,242 - 461,426 2036 - (7,324) - 73,242 - 527,344 2037 - (7,324) - 73,242 - 593,262 2038 - (7,324) - 73,242 - 659,180 2039 - (7,324) - 73,242 - 725,098 2039 final year Economic Development District 1-6 TE Connectivity fund 4516 Tax TIF Potential TIF Potential Increment Project Account Year Land Sales Expenses Projects Revenue Interest Fund Balance 12/31/2021 $ (64,197) 2022 21,460 (42,737) 2023 30,740 (11,997) 2024 30,740 18,743 2024 final year Revenues Rent Interest Total Revenue Expenditures Salaries & Benefits Departmental Operating Professional Services Equipment Total Expenditures Net increase (decrease) in fiord balance Fund Balance - January 1 Fund Balance - December 31 2600 138th Ave NW (quad) 2543 Bunker lake Blvd NW (quad) 2557 Bunker Lake Blvd NW (quad) 2526 138th Ave NW (quad) 2542 138th Ave NW (quad) 2527 Bunker Lake Blvd NW (quad) 2556 138th Ave NW (quad) 2513 Bunker Lake Blvd (twin) 2621 Bunker Lake Blvd (quad) 2607 Bunker Lake Blvd (quad) 2503 138th Ave NW (twin) CITY OF ANDOVER TIF Rental Properties 2017 2018 2019 2020 2021 Oct 2022 vacantlot 2017 rental 2018 rental 2020 $ 3,677.75 $ 80,711.25 $ 88,903.00 $100,147.00 $204,476.00 $120,950.00 10.04 720.50 2,467.00 2,532.00 27.00 - 3,687.79 81,431.75 91,370.00 102,679.00 204,503.00 120,950.00 8.96 51.23 1,976.37 324.00 1,275.00 - 608.64 24,157.09 31,691.00 39,978.00 81,062.00 70,148.00 418.00 20,068.85 16,813.00 44,161.00 84,747.00 43,084.00 1,035.60 44,277.17 50,480.37 84,463.00 167,084.00 113,232.00 2,652.19 37,154.58 40,889.63 18,216.00 37,419.00 7,718.00 - 2,652.19 39,806.77 80,696.40 98,912.40 136,331.40 $ 2,652.19 $ 39,806.77 $ 80,696.40 $ 98,912.40 $136,331.40 $144,049.40 Purchased vacantlot 2011 rental 2017 vacantlot 2017 vacantlot 2017 rental 2018 rental 2020 rental 2020 rental 2020 rental 2020 rental 2020 rental 2022 • F NDOVEA 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: President and EDA Commission Members Jim Dickinson, Executive Director Approve LMCIT Liability Coverage - EDA October 18, 2022 INTRODUCTION The League of Minnesota Cities Insurance Trust (LMCIT) requests that participating EDA's annually decide whether or not to waive the statutory tort liability limits established by Minnesota Statutes 466.04. DISCUSSION Attached is the "LMCIT Liability Coverage — Waiver Form" provided by the LMCIT, which provides a description of the options available to the City of Andover EDA. Currently the City of Andover EDA DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. I am recommending continuing with the past practice. BUDGETIMPACT No budget impact if the EDA does not waive limits. ACTION REQUESTED The City of Andover EDA is requested to not waive the monetary limits on tort liability established by Minnesota Statutes 466.04. submitted, Jim LMC LEAGUE of MINNESOTA CITIES LIABILITY COVERAGE - WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before the member's effective date of coverage. Return completed form to your underwriter or email to pstech(a,lmc.ore. The decision to waive or not waive the statutory tort limits must be made annually by the member's governing body, in consultation with its attorney if necessary. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision has the following effects: If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. • If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. LEAGUE OF MINNESOTA CITIES 145 University Avenue West PH: (651) 281-1200 FX: (651) 281-1298 INSURANCE TRUST St. Paul. Minnesota 55103 TF: (800) 925-1122 www.Imc.org LMCIT Member Name: Check one: ❑ The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. & 466.04. ElThe member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. & 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member's governing body meeting: Signature: Position: 2