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December 20, 2022
p 6ANLb YW 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING December 20, 2022 6:00 p.m. Conference Room A and B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (October 18, 2022 Regular) 3. Redevelopment Updates (Verbal) 4. Community Development Block Grant (CDBG) Application Discussion (Verbal) p5. Andover Home Improvement Program Discussion 6. Commercial Updates 7. Other Business 8. Adjournment H • ANL6 , .4 ANDOVER ECONOMIC DEVELOPMENT AUTHORITYMEETING— DECEMBER 20, 2022 - MINUTES The Meeting of the Andover Economic Development Authority was called to order by Secretary Jamie Barthel December 20, 2022, 6:01 p.m., at the Andover City Hall,1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Commissioners Absent: Also present: APPROVAL OF MINUTES Sheri Bukkila (arrived at 6:06 p.m.), Ted Butler, Randy Nelson, Kari Kafer and Greg Mueller Valerie Holthus EDA Executive Director, Jim Dickinson Community Development Director, Joe Janish Public Works Director/City Engineer, Dave Berkowitz October 18, 2022, Regular Meeting: Correct as written. Motion by Nelson, Seconded by Mueller, to approve the minutes as written. Motion carried 5 ayes and 2 absent (Bukkila and Holthus). REDEVELOPMENT UPDATES Mr. Dickinson reviewed the property in Andover Station North owned by DSTI. DSTI is interested in selling the parcel. The property is 7.26 acres and zoned commercial. The proposals DSTI has been receiving have been mixed use, commercial and housing. He reviewed a proposal for a 3-story market value apartment building with 115 units and commercial space featuring a restaurant. Mr. Dickinson reviewed market values of the proposal versus a strict commercial development identifying that the multi -family component has significant valuation and pays other development fees. Commissioner Nelson asked if the property is zoned commercial. Mr. Janish replied the parcel is zoned commercial. There are two options a comprehensive plan amendment to allow for housing or a City Code amendment allowing for a Conditional Use Permit on the parcel. Commissioner Nelson asked if the apartments are market value. Mr. Dickinson replied yes. © Andover Economic Development Authority Meeting Minutes — December 20, 2022 Page 2 Commissioner Kafer asked if there has been any interest in the parcel that doesn't include housing. Mr. Dickinson replied no, there has been interest in splitting the parcel. DSTI would prefer to sell the parcel in its entirety. The consensus of the EDA was they are not in favor of housing on the parcel. Mr. Janish reviewed the buildings in the Bunker Lake Boulevard redevelopment area. He indicated the wells are being sealed on the parcels where the buildings have been demolished. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) APPLICA TION DISCUSSION Mr. Dickinson stated in the past Andover has not been very successful receiving community development block grants. He continued the State and National priority is clean water. With the well contamination in the Red Oaks area the city is proposing a water analysis of the community for areas that could potentially be serviced with city water. The EDA supported the CDBG application. Mr. Dickinson indicated the application resolution will be taken to Council at their first meeting in January. 0 ANDOVER HOME IMPROVEMENT PROGRAM DISCUSSION Mr. Janish indicated the program has $50,000 slated for 2023, the plan is to begin marketing the program early 2023. Mr. Janish reviewed the home improvement program and eligibility requirements. He reminded the EDA the qualifying value can be changed at any time by the EDA. COMMERCIAL PROJECT ACTIVITY Mr. Janish updated on the following: Clocktower Commons, 15190 Bluebird Street — The final building pad location, interest is relatively low at this point. Interest in Hughes Industrial Park — Staff met with one of the business owners who is interested in building an accessory structure. The business would need an Interim Use Permit. ABCMini-Storage/T-Squared (self-storage),13624 Hanson Boulevard — City Council approved a CUP for additional mini -storage on a partition of this lot. They will not be getting the slab placed on the second building this year. They do have a construction crew to start erecting the east building. Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate to in Andover. © Andover Economic Development Authority Meeting Minutes —December 20, 2022 Page 3 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. HJ Development is waiting on the second site to "catch up" to the first and will process both applications with the City Council at a future meeting date. Taco Bell, 7" Avenue and Bunker Lake Boulevard — The building permit has been issued. The foundation is in. This is a panelized building and panels will not be showing up until February 2023. Westgate Senior Living, 71h Avenue and Bunker Lake Boulevard — Framing inspection has been completed on the west wing of the building. They will be insulting and starting with sheetrock. Aurora Vista, 7" Avenue and Bunker Lake Boulevard — Framing is under way, roof trusses are being installed. The east portion of the building could be enclosed within the week. Holasek Property — 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. This item is on the consent agenda for the City Council on December 20, 2022. 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 there were 140 new housing starts. So far this year we have had 88 permits issued for new housing, 1 apartment (150 units) and an assisted living facility (32 units). Fields of Winslow Cove — Staff is currently reviewing a final plat for Fields of Winslow Cove 2"a Addition with 36 lots on the west side of Prairie Road. The final plat will be brought to Council in January. Legacy at Petersen Farms — City Council will consider the Conditional Use Permit (CUP) amendment for a Planned Unit Development amendment to allow for Phase 3 (33 lots) and adjustments to the Master Plan at their December 20, 2022 meeting. Anoka County Sheriff's Office, 13301 Hanson Boulevard — Parking lot expansion construction complete. Anoka County 911 and Radio Building - The building permit is in review. © Beberg Landscaping,13535 Grouse Street— The property is listed for sale as the owner has closed the business. Staff has not heard as of yet if the property has sold. Overall Marketing — City staff continues to work with parties interested in investing in Andover and marketing all commercial sites. Staff continues to work with Anoka County Regional Andover Economic Development Authority Meeting Minutes — December 20, 2022 Page 4 Economic Development (ACRED) on marketing of the community and Anoka County. ACRED is developing two programs with intentions to have them available in early 2023. One program is expected to allow communities and landowners to obtain a grant to assist with obtaining "shovel ready" status. The other would allow for communities and landowners to assist with preparing their property for market or assist a project to move forward. Grace Lutheran Church, 13655 Round Lake Boulevard — The church will be removing the portable classrooms on their property. Legacy Christian Academy, 3037 Bunker Lake Boulevard — They are looking at an expansion to their building and will be requesting to bring in portable classrooms. OTHER BUSINESS There was none. ADJOURNMENT President Bukkila adjourned the meeting at 6:45 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary ►J