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HomeMy WebLinkAboutEDA December 17, 2002 CITY OF ANDOVER - 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304. \163) 755-5100 FAX \163) 755-8923 . \WW.CI.ANDOVER.l\!N.US CITY OF ANDOVER ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING December 17, 2002 - 6:15 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Oathof Office 3, Approve Minutes - (11/18/02) 4. Consent Items a, Approve 2003 EDA Budget b. Approve Andover Station Design Standards Revisions 5, Andover Station Townhouse Development - Verbal Update , J 6. Andover Station - TIF Financial Update 7, Receive Beberg Landscaping Funding Request 8. Consider Andover Station Maintenance Agreement 9, Other Business 10. Adjourn i @ , CITY OF ANDOVER J 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . \'V\'VW.CI.ANDOVER.MN.US TO: EDA President and Board FROM: John Erar, Executive Director SUBJECT: Oath of Office DATE: December 17, 2003 INTRODUCTION The EDA Board recently appointed Mr, Fred Larson III to a voting position on the EDA Board. In addition, President Gamache, Vice President Trude and Secretary Jacobson will also need to be reappointed as their Board terms will expire on January 7, 2003, DISCUSSION In light of the opportunity to swear in Commissioner Larson, staff suggests that Commissioners Gamache, Trude and Jacobson be appointed and sworn in to new terms at this meeting. J Commissioner Larson's appointment was to fill the vacancy created by the resignation of former Commissioner Terri Hokanson-Anderson that would have expired on January 1, 2008. Under state statute, the appointment of Council members to the EDA Board typically runs concurrent with their respective Council terms, Accordingly, President Gamache would be reappointed for a two~year term expiring on January 2, 2005. Commissioners Trude and Jacobson would be reappointed for four (4) year terms expiring on January 2,2007. ACTION REQUIRED Unless there is no action to change Commissioner designations in terms of Board positions and responsibilities, Commission Fred Larson III will be sworn in to fill the remaining term of former Commissioner Hokanson. Commissioners Gamache, Trude and Jacobson to be appointed and sworn in to terms as previously described. Oath of office ceremonies for these Commissioners will be performed by City Attorney Bill Hawkins at the beginning of the meeting. ljA~rrllU'd' 1 hn Erar J ~~ ~~~ &..Q A?A ~.A A'" &~ ..~ A~ ~~ 6\~ ~~ ~~~~.~y~~y~~~~y~~y~~y~~~~~~y~:v~ / ,~~ .~.A "-~~ ~~ c..?4 Oath of Office ~?4 ~~ ~ Qt.~ State of Minnesota) A~ :v~ ~~ County of Anoka ) SS ~~4 City of Andover ) ~?~ ~~ ~~ A.A I, Fred Larsen III do solemnly swear that I will support A'T'ta ~ ~~ the Constitution of the United States, the Constitution of the ~~~ ~.a ~~ State of Minnesota, and that I will faithfully and impartially ~~ &~4 discharge the duties of the office of Commissioner of the ~~ ~~ ~y~ ,-j~~ Andover Economic Development Authority to which I have A.lQ ~~ ~~ been appointed, to the best of my knowledge and ability, so ~~4 ~.4 .:v~ help me God. ~ ~~A3 A~4 ~~ ~~ ~~Al ~~ ~ ------------------------- ~ Fred Larsen III ~~ ~.t::l ~~ Subscribed and sworn to before me this _ day of , ~~ . ~"A 2002. ~.. ~~ ~~ ~\f4 ~~ ~ ~~ .' l'J~ ------------------------- '--/~ ~?A ~?4 &'?At ~~. .~ ""'A .~ ."- .?A ."-A A'" a,?.. ~~~~~~~~.~~~~~~~~~~ n \ .J OFFICIAL OATH Filed in my office this day of ,2002, Victoria Volk, City Clerk City of Andover County of Anoka State of Minnesota () n \ j ..A ..A ... ... ... ."A ..A ."A ..A .."A ..A ..A ~~~y~~y~~~~y~~~~.~~~~ ... ..A ~. . .-.. ..A ~ ~ ~T~ Oath of Office ~T~ ..A. ..A :;T~ State of Minnesota) :;T~ ..A County of Anoka ) SS ."A ~~ City of Andover ) ~y~ ..A ..A ~~ I, Michael R. Gamache do solemnly swear that I will . ... support the Constitution of the United States, the ... ~~ ~~ Constitution of the State of Minnesota, and that I will ..A ..A ~~ faithfully and impartially discharge the duties of the office of ~~ ..A ..A ,~ . ,__~T~ Commissioner of the Andover Economic Development ..A Authority to which I have been appointed, to the best of my ..A ~~ :7~ ..A knowledge and ability, so help me God. ."A ~~ :7~ ..A ... ~~ . ..A ... . ------------------------- :7~ Michael R. Gamache ..A Subscribed and sworn to before me this ..A . _ day of , ~ 2002. ..A .-.. :7~ :7~ , .-.. ... ~~ ------------------------- ~~ '--69T .-.. ... ... .-.. .-.. .-.. .-.. .-.. .-.. .-.. . . ~y~~~y~~~y~~~~y~~y~~~~y~~T~~T~ (\, ,--/ OFFICIAL OATH Filed in my office this day of ,2002, Victoria V olk, City Clerk City of Andover County of Anoka State of Minnesota .f"\ '---' 0 " ... .~ ... ... ... ... ... .... .... ... ... ... ~~~~~~.~~~~~~~~~~~~~~~ ... ... ~ ~~ ,,~l~ ... .~ ~~ Oath of Office ~~ ... ... ~~ State of Minnesota) ~ County of Anoka ) SS ... ... ~ City of Andover ) ~ ... I, Don Jacobson .~A ~~ do solemnly swear that I will support ~y~ ... the Constitution of the United States, the Constitution of the .~. ~~ ~~ State of Minnesota, and that I will faithfully and impartially ... ... ~~ discharge the duties of the office of Commissioner of the ~~ /-,e ... .'-~l~ Andover Economic Development Authority to which I have ~~ ... been appointed, to the best of my knowledge and ability, so ... ~~ ~ .... help me God. ... ~ ~~ ... ... ~~ ~ ... ------------------------- .~. . ~y~ Don Jacobson ~ .~l~ ... Subscribed and sworn to before me this _ day of , ... ~~ 2002. ~~ ... ... ~~ ~~ . ,~.. ------------------------- ... '--~ ~y~ ... ... ... ... ... ... ... ... ... e ,~ ~~ ~y~~~~~~~~~~~~~~~l~~l~~l~ ,~\, \ ) OFFICIAL OATH Filed in my office this day of ,2002, Victoria Volk, City Clerk City of Andover County of Anoka State of Minnesota f\ ~) 0 ..A ..A ... ."9'A ... ."9'A .~ ..A ... ."9'A ..A ."9'A ~Y~~~~~~~.~~g~~~~~.~g~g~ ." ... ~.~~ ~~ ".A ..... ~~ Oath of Office g~ ... .~ ~~ State of Minnesota) ~Y~ County of Anoka ) SS ... ."9'A ~Y~ City of Andover ) ~ ... I, Julie Trude do solemnly swear that I will support the ." ~~ ~~ ... Constitution of the United States, the Constitution of the ... ~Y~ ~ State of Minnesota, and that I will faithfully and impartially ... ." ~Y~ discharge the duties of the office of Commissioner of the ~Y~ .' '... ... ''-~ Andover Economic Development Authority to which I have ~ ~T~. ..A been appointed, to the best of my knowledge and ability, so .~ ~~ g~ help me God. ... ..A ~~ ~~ ... ... ~Y~ ~ ..A ------------------------- ..A Julie Trude ~Y~ ~~ ." Subscribed and sworn to before me this _ day of , ... ~~ 2002. ~Y~ ... ... ,~~ ~ "-;.~ ------------------------- ..A ~~ ~Y~ ... ..A ... ... ... ... ." ... ... ..A e .e ~Y~~~Y~~~~~~~Y~~~~Y~~~~T~~T~ C) OFFICIAL OATH Filed in my office this day of ,2002. Victoria Volk, City Clerk City of Andover County of Anoka State of Minnesota () 0 CD CITY OF ANDOVER 1685 CROSSTOWN BOULEVARDN.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: Economic Development Authority CC: John Erar, Executive Director FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: December 17, 2002 INTRODUCTION The following minutes have been provided by staff for approval by the Economic Development Authority: / November 18, 2002 Special Meeting Copies of the minutes are attached for your review. ACTION REOUIRED The EDA is requested to approve the minutes of November 18, 2002. Respectfully submitted, dJ~ (),~ Vicki V olk City Clerk / 1 CITY of ANDOVER SPECIAL ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 18,2002 - MINUTES. A special Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache at 7:00 pm, Monday, November 18,2002 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Don Jacobson. Mike Knight, Ken Orttel, Julie Trude, Robert Nowak, Fred Larsen Commissioners Absent: None . Also Present: John Erar, Executive Director Will Neumeister, Community Development Director Jim Dickinson. Finance Director Chris Enger, Ryland Homes ANDOVER STATION - ENVIRONMENTAL WORK -PHASE I AND II Mr. Erar noted two quotes were received for the Phase land Phase IT work. One was from Leash Environmental for $25,000 and one from SEH for $7,700.00 for Phase I arid Phase IT. SEH was authorized to do the work. ANDOVER STATION - REVISED SITE LAYOUT PROPOSAL . Mr. Erar explained that staffhas attempted to reconfigure the pond layout to enhance the marketing potential of the site. The Coon Creek Watershed District has indicated that the EDA would be allowed to fill the east end of the pond and expand the west end. Because of the way the pond is at the present time we are losing a lot of exposure from Bunker Lake Boulevard. United Properties is receptive to the possibility of revising the area. The cost for filling that portion of the pond could be absorbed through development of the property. He also noted that replacement would beone to one. Mr. Erar stated that if this is something the EDA wants, staff could work with United Properties. With the . current configuration it is possible that we will end up with office buildings and with an open area there would be more stores. . President Gamache asked if we should ask United Properties to come back with some design. Commissioner Orttel felt that if the EDA is willing to accept some reconfiguration. they should come back with something. Commissioner Jacobson stated that he is not against change if it's necessary. The idea in the beginning was looking across the pond from Bunker Lake Boulevard. He felt that the character is changing almost completely. . / , Special EDA Meeting November 18, 2002- Minutes Page 2 Mr. Erar stated that if the EDA is open to reconfiguratioIl, only upon approval would we go ahead and reconfigure. Commissioner Nowak asked how long the option is on the property. Mr. Erar stated that it expires in 2003. He explained that the reconfiguration is only an idea Staifis trying to think of creative ways to market the property. President Gamache noted that he would not have a problem telling United Properties that we are looking at some changes. A decision can be made when they come back with something. Consensus was to see what United comes back with. ANDOVER STATION - RESIDENTIAL DEVELOPMENT PROPOSAL -RYLAND HOMES Chris Enger, Land Resources Manager for Ryland Homes reminded that he had appeared before the EDA in June. At that time he has proposed urban townhomes for the site. He explained that his company is a large homebuilder, building a wide spectrum of housing. They have over 1600 floor plans available nationwide. They have looked at the site again / and are proposing a different type of townhome. Mr. Enger reviewed the townhomes they are proposing, noting that the end unit has one level living and is ADA accessible. The three bedroom is popular with single parents and has a single entry. The center unit is a two story. He noted that the site plan is similar to what Hans Hagen had proposed. There are 72 units proposed compared to the 90 they had proposed in June. There would be landscaping along Station Parkway to screen the homes from the street. Also proposed are a tot lot, trails, a gazebo and sidewalks throughout Mr. Enger explained that some communities require sprinklers which add $6,000 to each unit. He was not aware of what Andover requires. He also noted that if they did not have to provide a 60 foot right-of-way for the street in the middle of the project they could get more units. He noted that these homes are 1600 to 1800 square feet and range in price from $160,000 to $200,000. The exterior construction is vinyl siding and brick. Mr. Erar felt that gables on the backs of the units would make them more attractive. Mr. Enger noted that there would be 60 feet between these units and the homes to the south. He stated that they have these same units in Circle Pines on Lexington and Lake Drive. He suggested that the EDA members tour the units in Circle Pines. He also noted that he would be open to having a neighborhood meeting. Commissioner Jacobson suggested that the EDA members look at the Circle Pines units and let Mr. Erar know what they think and if the majority like them, a neighborhood meeting should be scheduled. Special EDA Meeting . November 18, 2002 - Minutes \ Page 3 Commissioner Trude asked Mr. Enger what the market is for these units. Mr. Enger noted that they would be for entry-level and retired people. Commissioner Jacobson asked if this would be done in phases. Mr. Enger stated they would hope to build it all in one year. President Gamache asked if Ryland Homes has had experience with properties with problems such as this site. Mr. Enger explained that in Shakopee they are building on a site that was a dump; in Hopkins they are building on the old Honeywell site and the site in Circl~ Pines is also a problem site. The EDA thanked Mr. Enger for his presentation. Commissioner Knight expressed misgivings about what the units would look like in 20 years. Commissioner Trude stated that if you have a good homeowners association then you don't have problems. Commissioner Nowak asked if Ryland Homes is asking for indemnification. Mr. Erar stated that they are looking for 5 years. , ANDOVER STATION NORTH - SITE PLANNING AND ENVIRONMENTAL '. J VERBAL UPDATE Mr. Erar noted that staff is moving forward with a number of environmental activities. The Phase I and Phase IT price is down to $6,300.00. The EA W will come in at about $14,928 rather than the expected $25,000. Staff is waiting to see if we should remove the 500-year flood plain. Mr. Erar stated that he received notice from SEH that there are 33000 cubic yards of contaminated soil in three locations on the North Andover Station site. We may be able to use the contaminated soil for the roadbed. Once the Phase IT is completed it will come back to the EDA. Commissioner Jacobson noted that in the management report, Mr. Erar noted that Target Greatland might be coming in and asked Mr. Erar if they are really interested in the North Andover Station site. Mr. Erar stated that they are very serious about coming here. Commissioner Trude expressed concern about the lighting from a Target store or whatever store might be built. She also was concerned with the homes on the east side of Pov's property. Mr. Neumeister explained that our consultant is working on a sketch showing a loop road. If there is housing on both sides of the street it is more conducive to families. I Special EDA Meeting \ November 18, 2002 -Minutes Page 4 Motion by Jacobson, seconded by Nowak to adjourn. Motion carried unanimously. Meeting adjourned at 9:07 pm. Respectfully submitted, U' !/-/U Vicki V olk City Clerk J / (5J '\ CITY OF ANDOVER / 1685 CROSSTOWN BOULEVARD N.W. . ,\NDOVER, l\lINNESOTA 55304. (763) 755-5100 FA,X (763) 755-8923 . 'W,\'vW.CL\NDOVER.l\lN.US TO: EDA President and Board FROM: John Erar, Executive Director SUBJECT: Adoption of 2003 EDA Budget DATE: December 17, 2002 INTRODUCTION The proposed 2003 EDA Budget is attached for Board consideration and adoption. DISCUSSION Budgetary increases in 2003 are attributed to 1) increased time allocations by staff on economic development projects attributable to Andover Station North and other authorized work activities; 2) capital outlay for City monument signs identified in the 2003 CIP. , ) With respect to training opportunities, the Executive Director and other designated staff will be planning on enrolling in seminars and other professional education courses designed to keep staff abreast of changing laws and requirements affecting economic development. In terms of revenue, proceeds from sale of property is reflected in the budget and is associated with Andover Station development and is non-tax increment related. No other changes in revenue from the preceding year are noted. BUDGET IMPACT The proposed 2003 EDA Budget reflects additional anticipated workload activities associated with the commercial redevelopment of Andover Station and Andover Station North. ACTION REQUIRED The EDA Board is respectfully requested to adopt the 2003 EDA Budget, Respectfully submitted, John Erar J , "T1 ao-oen-om -l -l -00 5"::!;:a "T1 c: -I~S:~-a~~ 0 0 a - -l<T11ll c: ::J - - o ::r affi)>i5 ::J o -. ctl 0 -c en III III III c.. Dr or -, ::T =-= 0 :::::s - - ctl III c.. ~ ;:a ctl .. OJ ...... a. ::::s m --enOlctl:Jc, C.en -33C: m Octlg:ene!.-, III III ~c::<c.Qlen2' III < en 0 ;:a ctl -. III III III ..... c: (I)~:Jcn iii III "'C!::!;()"cn~CD'" iii ~ .. ::J III ~ ctl ctl c. :< lJl :s 0 n < - TI ::J C' c: 3 III III :J ctl n :s en:<;s:: o. iD lD :s 0 ctl n en CD c, III _0 Ql ctl (/l en (/l c 0 ~CD - ;:;: ::J () ..... en III III lD 3 l>> C r::: c..CD~ :s CD (/l ctl c.. - CD ... en -. .. 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WWW.CLANDOVER.MN.US TO: EDA President and Board CC: John Erar, Executive Directo~ FROM: Will Neumeister, Director of Community Developmentd- SUBJECT: Approve Andover Station Design Standards Revisions DATE: December 17,2002 INTRODUCTION During the review of the construction plans for the two most recent buildings in Andover Station there were questions raised regarding two of the elements of the Design Standards (i.e. rooftop mechanical screening and architectural finishes). In both cases, the staff worked with the owners and their architects to achieve the goals of providing high quality architectural materials and screening efforts that would achieve the desired effect. As a result of these problems it was felt that the language in the design standards that are being used should be reviewed and written so as to avoid , these problems in the future, J DISCUSSION The pertinent portions of the design standards (with the proposed changes highlighted) are attached to this report. All other portions of the design standards would stay as currently written, ACTION REQUIRED EDA review and adopt the proposed language changes regarding rooftop mechanical screening and architectural finishes), Respectfully submitted, UbC~/I~~~ Will Neumeister I (12/17/02 revision) (proposed new language-with new language that has been added shown in underlining) j ~ Roof Form/Rooftop Equipment A variety of roof forms are permitted, Architectural drawings shall show rooftop mechanical equipment details, Changes in roof form must correspond with a building's structural bays and massing. Mechanical equipment must be integrated into overall mass of a building and screened and/or hidden behind parapets or recessed into hips, gables, parapets, Plain equipment boxes are not acceptable, . Materials and Methods of Construction Building Materials. All buildings must have the following facade materials in any combination on each facade: brick. stone. glass, Other materials. such as wood. masonry. brick. rock face block. stucco. stone, architecturally textured concrete precast panels (but not including smooth concrete block) may be permitted at the EDA's discretion. if they are determined to be consistent with the Andover Station Design Standards and the purpose of this section, The design on facades not visible from a public right-of-way or residential uses may be less ornamental than those visible from public right(s)-of-wav, but may still use the same materials as the rest of the building. Walls used for screening must use the same building materials as the principal building(s). Buildings shall suPport regional traditions and maintain a high level of craft in the process of construction. See recommended materials palette, Exhibit C, (Sanlples available at Andover Community , Development Office,) (old language -- that was generally too vague and/or left room for interpretation) ~ Roof Form/Rooftop Equipment A variety of roof forms are permitted, Changes in roof form must correspond with a building's structural bays and massing, Mechanical equipment must be integrated into overall mass of a building and screened behind parapets or recessed into hips, gables, parapets and similar features, Plain equipment boxes are not acceptable, . Materials and Methods of Construction Buildings shall support regional traditions and maintain a high level of craft in the process of construction. Wood, masonry, brick, rock face block, stucco and stone are appropriate building materials. See recommended materials palette, Exhibit C. (Samples available at Andover Community Development Office,) I CITY OF ANDOVER TIF Cash Flow Analysis. Debt Service Districts 1-1 & 1-2 Revenue Available for Debt Service Projected Scheduled Projected Increment to . TIF Debt Service Current New Spedal Transfer From Debt Service Year Total 105% Increment Increment. Assessments Total Projects Cash Balance 1/1/2002 $ 757,498 2002 $ 1,188,068 $ 1,247,471 $ 820,598 $ $ 68,800 $ 889,398 $ 283,007 682,432 2003 1,215,473 1,276,247 837,010 100,888 68,800 1,006,698 200,000 612,883 2004 1,318,739 1,384,676 954,638 172,260 68,800 1,195,698 200,000 623,905 2005 1,403,155 1,473,313 1,145,991 36,450 68,800 1,251,241 200,000 601.833 2006 1,455,885 1,528,679 1,205,361 45,090 63,328 1,313,779 200,000 586,933 2007 1,454,275 1,526,989 1,274,558 63,328 1,337,886 200,000 597,830 2008 1,468,370 1,541,789 1,300,049 63,328 1,363,377 200,000 619,418 2009 1,476,145 1,549,952 1,326,050 1,326,050 200,000 595,516 2010 1,249,070 1,311,524 1,352,571 1,352,571 200,000 838,563 2011 1,050,435 1,102,957 1,379,622 1,379,622 77,002 1,190,230 2012 1,040,430 1,092,452 285,568 lA) 285,568 383,346 2013 642,500 674,625 291,279 291,279 2014 14,962,545 15,710,674 12,173,295 354,688 465,184 12,993,167 1,960,009 lA) The last year of Increment for TIF District 1-2 is 2011 . Tax Increment based on pay 2003 tax capacity computation rates, and listed on attached New Increment Project Listing CITY OF ANDOVER Cash Flow Analysis - TIF Project Accounts Districts 1-1 & 1-2 / I Cash Flow Analysis I XferOut TIF TIF Potential Pre-1998 Xferto Project Account Year Land Sales Expenses Projects TIF Interest' Debt Service Cash Balance Potential Land Sales 1/1/2002 $ 544,514 - United Option $ 2,100,000 2002 $ 2,061.401 lA) $ 445,000 $ $ $ 283,007 1,877,908 2003 550,000 (.) 488,000 1,000,000 (') 750,000 200,000 (10,092) - Old Anoka Auto $ 2,600,000 2004 270,000 350,000 (2) 200,000 (830,092) 2005 220,000 200,000 <1,250,092) 2006 120,536 200,000 (1,570,628) 2007 127,458 200,000 (1,898,084) 2008 130,005 200,000 (2,228,089) 2009 132,605 200,000 (2,560,694 ) 2010 135,257 200,000 (2,895,951 ) 2011 137,962 77,002 (3,110,915) 2012 28,557 (3,139,472) 2013 29,128 (3,168,600) lA) Andover Market Place (1) Jay 5t Construction (.) United - Residential (2) Great River Land * Interest earned in TIF Districts prior to 1998 is not classified as Increment and can be transferred out for other city uses, such as Public Works land purchase. 2002 TiF Forecast.XLS CITY OF ANDOVER Tax Increment Analysis New Increment Project Listing / Estimated Market Estimated Value* Increment** I 2003 I Northwest Commercial $ 845,000 $ 17,442 1 st Regions 800,000 16,470 TIF Settlement - 66,976 Total $ 1,645,000 $ 100,888 I 2004 I Tanners Steakhouse $ 1,800,000 $ 38,070 Office Warehouse #9 400,000 7,830 Office Warehouse #10 400,000 7,830 Knowlans Grocery 4,000,000 85,590 Andover Market Place - Shops 1,200,000 25,110 Andover Market Place - Liquor 400,000 7,830 Total $ 8,200,000 $ 172,260 I 2005 I '. Office Warehouse #6 $ 400,000 $ 7,830 (A) } Office Warehouse #5 400,000 7,830 (A) 116 LLC - Sports Bar 1,000,000 20,790 (A) Total $ 1,800,000 $ 36,450 I 2006 I Andover Market Place - Bank $ 700,000 $ 14,310 (A) Andover Market Place - Restaurant 500,000 9,990 (A) 116 LLC - Restaurant 1,000,000 20,790 (A) Total $ 2,200,000 $ 45,090 (AI Based on Developer's Estimate for Completion * The estimated market value is taken from the Building Department's permit applications and increment based on pay 2002 tax capacity computation. ** The increment generated from the aforementioned projects will end in 2011, I 2002 TIF Forecast.XLS @ ) CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: EDA President & Commisioners CC: John Erar, Executive Directo~ FROM: Jim Dickinson, Finance Director SUBJECT: Andover Station - TIP Financial Update DATE: December 17,2002 INTRODUCTION With potential development prospects on the plate for the Andover Station area, Finance thought it would be beneficial to the EDA Board if a financial status report was given outlining financial implications of making or not making decisions on potential prospects, A presentation on the attached data will be provided at the meeting so the EDA has an understanding of the analysis provided, DISCUSSION Development activity in the Andover Station area is currently being driven by tax increment financing (TIP) administered by the Andover EDA. The TIP used is a pooling of two districts identified as TIP 1-1 and TIP 1-2, which will remain in effect until 2013 and 2011 respectfully, The attached cash flow analysis is showing the following: 1. Current TIP debt service obligations 2. Projected revenues pledged to service debt service obligations 3, Negotiated land sales 4, Current and projected TIP district on-going expenses 5, Projects to develop Andover Station North 6, Transfer out of pre-l 998 TIP interest to facilitate Public Works land purchase 7, TIP Debt Service and TIP Project Account projected cash balances. The analysis has a multitude of factors that affect the timing of future projects both in and outside of the TIP districts and Finance will be looking for direction from the EDA on what direction to go, / EDA President & Commissioners , December 17, 2002 Page 2 of2 BUDGET IMP ACT Analysis only, ACTION REQUESTED The EDA is requested to review, discuss and comment on the attached analysis with the Finance Director and Executive Director, ~ / / CITY OF ANDOVER TIF Cash Flow Analysis - Debt Service Districts 1-t & 1.2 Revenue Available for Debt Service Projected Scheduled Projected Increment to T1F J Debt Service Current New Special Transfer From Debt Service Year Total 105% Increment Increment- Assessments Total Projects Cash Balance 1/1/2002 $ 757,498 2002 $ 1,188,068 $ 1,247,471 $ 820,598 $ $ 68,800 $ 889,398 $ 283,007 682,432 2003 1,215.473 1,276,247 837,010 100,888 68,800 1,006,698 200,000 612,883 2004 1,318,739 1,384,676 954,638 172,260 68,800 1.195,698 200,000 623,905 2005 1,403,155 1,473,313 1,145,991 36,450 68,800 1,251.241 200,000 601,833 2006 1,455,885 1,528,679 1,205.361 45,090 63,328 1.313,779 200,000 586.933 2007 1,454,275 1,526,989 1,274,558 63,328 1,337,886 200,000 597,830 2008 1,468,370 1,541,789 1,300,049 63,328 1,363,377 200,000 619,418 2009 1,476,145 1,549,952 1,326,050 1,326,050 200,000 595,516 2010 1,249,070 1,311.524 1,352,571 1,352,571 200,000 838,563 2011 1,050,435 1.102,957 1,379,622 1,379,622 77,002 1,190,230 2012 1,040,430 1,092,452 285,568 lA) 285,568 - 383,346 2013 642,500 674,625 291,279 291,279 2014 - 14,962,545 15,710,674 12,173,295 354,688 465,184 12.993,167 1,960,O09 (A) The last year of increment for TIF District 1-2 is 2011 . Tax Increment based on pay 2003 tax capacity computation rates, and listed on attached New Increment Project Listing CITY OF ANDOVER Cash Flow Analysis. TIF Project Accounts Districts 1.1 & 1-2 / I Cash Flow Analysis I Xfer Out TIF T1F Potenfial Pre-1998 Xferto Project Account Year land Sales Expenses Projects T1F Interest' Debt Service Cash Balance Potential Land Sales 1/1/2002 $ 544,514 - United Opfion $ 2,100,000 2002 $ 2,061.401 (Al $ 445,000 $ $ $ 283,007 1,877,908 2003 550,000 {B) 488,000 1,000,000 (') 750,000 200,000 (10,092) - Old Anoka Auto $ 2,600,000 2004 270,000 350,000 (2) 200,000 (830,092) 2005 220,000 200,000 (1,250,092) 2006 120,536 200.000 (1,570,628) 2007 127,456 200,000 (1,898,084) 2008 130,005 200,000 (2,228,089) 2009 132,605 200,000 (2,560,694) 2010 135,257 200,000 (2,895,951 ) 2011 137,962 77,002 (3,110,915) 2012 28,557 (3,139,472) 2013 29,128 - (3,168,600) lA) Andover Market Place (11 Jay 5t Construction (0) United - Residential (2) Great River Land -Interest earned In TIF Districts prior to 1998 Is not dassified as increment and can be transferred out for other city uses, such as Public Works land purchase. / 2002 TIF Forecasl.XLS CITY OF ANDOVER Tax Increment Analysis New Increment Project Listing I Estimated Market Estimated Value* Increment** I 2003 I Northwest Commercial $ 845,000 $ 17,442 1st Regions 800,000 16,470 TIF Settlement - 66,976 Total $ 1,645,000 $ 100,888 I 2004 I Tanners Steakhouse $ 1,800,000 $ 38,070 Office Warehouse #9 400,000 7,830 Office Warehouse #10 400,000 7,830 Knowlans Grocery 4,000,000 85,590 Andover Market Place - Shops 1,200,000 25,110 Andover Market Place - Liquor 400,000 7,830 Total $ 8,200,000 $ 172,260 I 2005 I Office Warehouse #6 $ 400,000 $ 7,830 (A) / Office Warehouse #5 400,000 7,830 (A) 116 LLC - Sports Bar 1,000,000 20,790 (A) Total $ 1,800,000 $ 36,450 I 2006 I Andover Market Place - Bank $ 700,000 $ 14,310 (A) Andover Market Place - Restaurant 500,000 9,990 (A) 116 LLC - Restaurant 1,000,000 20,790 (A) Total $ 2,200,000 $ 45,090 (A) Based on Developer's Estimate for Completion * The estimated market value is taken from the Building Department's permit applications and increment based on pay 2002 tax capacity computation, ** The increment generated from the aforementioned projects will end in 2011, / 2002 TIF Forecast.XLS CITY OF ANDOVER / 1685 CROSSTO'W'N BOULEVARD NW. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . W\V\V.CI.ANDOVER.MN.US TO: EDA President and Board FROM: John Erar, Executive Director SUBJECT: Beberg Landscape Nursery Company - Request for Financial Assistance DATE: December 17,2002 INTRODUCTION Mr. Chris Beberg, President of Beberg Landscape Nursery Company is requesting financial assistance from the EDA in the form of a business loan that allows for low monthly payments in the first 24 months, with a series of larger payments in the subsequent repayment period. The repayment period requested by Mr, Beberg is anticipated to be in the 4~5 year range. DISCUSSION Mr, Beberg's letter is attached for EDA Board review. In his request, two options are identified with / a total cost of approximately $81,000. Staff will be meeting with Mr. Beberg to further confirm the particulars of the financial assistance requested, but based on the letter submitted to the EDA is believed to be in the range of approximately $100,000. The EDA may wish to consider whether there is Board interest in working with Mr. Beberg to structure a revolving loan package to assist the company with costs associated with expanding his facility location, If EDA Board direction is provided, staff will work with Mr, Beberg in terms of negotiating loan particulars acceptable to Mr. Beberg and bring the proposed arrangement to the Board for final approval. There are a number of model revolving loan programs currently in place in other communities that assist local businesses with financial support designed to supplement primary bank loans and provide additional flexibility to the business owner in terms of repayment options, Local business assistance is typically considered to be a meaningful investment in local job creation and economic expansion, BUDGET IMPACT Funding for a revolving loan program will most likely be appropriated through special revenue resources associated with economic development activities and/or investments from related activities. / ACTION REQUIRED "' Consider the request from Mr. Beberg and determine the level of Board interest in creating a revolving loan business assistance program. If the Board supports this request, staff will develop a revolving loan program proposal for Board approval and work with Mr, Beberg to structure an appropriate business loan package that attempts to meet both EDA Board requirements and company needs, , , / ee.: 'fol+N UAfL Will ^,Maf5~ . / Date: November 26, 2002 To: Andover Economic Development Authority From: Beberg Landscape Nursery Co, Chris Beberg, President Re: Application for assistance in construction of a greenhouse & fence Beberg Landscape Nursery is in the process of constructing a 60' x 90' block building at our 13535 Grouse Street NW address. This building will become our retail garden center and warehouse in the Spring of2003. With the assistance and advice of City Staff, we have made strong efforts to present an attractive facility that will be a welcome part of the Andover Station commercial park. Part of our improvements will be to construct a greenhouse on the Southwest comer of the property, directly off the intersection of Grouse Street and Station Parkway, This application is a request for financial assistance to improve the aesthetics of this structure beyond what our current financial ability allows us to do. On November 22, 2002 Beberg Landscape Nursery was able to acquire the property from Roger's Auto Body and begin construction. Significant delays were encountered due to efforts made for inspecting, testing and analyzing the soil conditions of the property, In conjunction with the Minnesota Pollution Control Agency, we have developed a plan for cleaning up any debris found on the site during construction. This j process has been and will continue to be an expensive addition to our construction plans and has reduced the amount of funds we have available for construction, Construction has begun on our warehouse/retail facility, This building is being constructed according to the City reviewed plans, Our proposed greenhouse structure will adjoin this retail building on the South side, The warehouse/retail building has been priced out at $400,236,00, nearly $100,000 over original projections we received from two general contractors, We were able to obtain a $400,000,00 mortgage for construction from 151 Regions Banle This mortgage was put into place 6 weeks ago and was intended to cover the retaiVwarehouse building, a new ornamental fence around the majority of the property, and the greenhouse structure, The mortgage will only cover the retaillwarehouse building while the fence and greenhouse will have to be paid for from our general operating funds, Other improvements to the facility beyond the building have already cost us $174,000,00.. ,a large strain on a small company, Beberg Landscape Nursery will provide detailed financial budgets indicating the need for assistance with this project upon request from the Economic Development Authority, Resulting from the increased costs of soil clean-up and building construction, we are forced to consider less expensive greenhouse structures. Through our review of several types of greenhouses, we have identified two options. / I Option 1 is to construct a 21' x 42' "Retail-Mart" by PolyTex, Inc, This structure is an improved hoop-house type building that has clear, rigid polycarbonate sides and roof. The presentation of this building is an improvement over the poly topped structures commonly seen in grocery store parking lots, but has a similar framework. The Retail- Mart is a flexible structure and does not require frost footings. The building does not have options of glass windows or doors, The building materials for this option would cost us $10, 514.47 and the building would be constructed by our personnel. The greenhouse would be placed on grade and would have a gravel floor, Option 1 is the maximum we believe we can afford in the next two years. Option 2 is to construct a 24' x 60' "Super-Mart" by PolyTex, Inc, The Super-Mart is a more attractive greenhouse featuring 12' sidewalls, glass windows and doors, and a more permanent presentation, Our consideration of this option includes a glass store front/windows along the West and South sides of the building, The South side would also feature glass doors, This structure has stamped engineered plans and would be placed on a frost footing, The floor of the greenhouse would be poured concrete or concrete pavers, The presentation to the surrounding streets would be one of colorful plants through the glass windows; a notable improvement over the commercial appearance of the pure polycarbonate covered Retail-Mart. This structure is significantly more expensive however, We have the following cost estimation for Option 2: Greenhouse structure - Firm Bid $38,239,00 ) Glass windows & doors - unconfirmed estimate $22,000,00 Frost Footings - verbal quote $4,800.00 Concrete Floor (or concrete pavers) $4,104,00 Plumbing for drains / irrigation spickets $1.400.00 TOTAL OPTION 2 $70,543,00 Implementation of Option 2 will require digging the footings as soon as possible to avoid added expense for cutting the frost line, Our request is one for financial assistance to improve the appearance of our facility to our neighbors and fellow Andover Station occupants, Improving the presentation of our greenhouse will complement the balanced look of the rest of our facility. As this building would also add value to our business and better our image, we feel there is strong business merit to such a purchase, The improved facility will help us transition from a bulk landscape product supplier to a comer garden center/flower mart, However, it is just not feasible in the next few years, Our need is one of a structured loan that features low monthly payments or down payment in the first 24 months followed by a series oflarge payments for 48 to 50 months, Our goal is a financial package that would allow us to make the upgrades now and delay the majority of the repayment until the time that we have paid for all the other improvements, I , \ / We have made strong efforts to design a commercial site that is an asset to the Andover Community both in appearance and service, Our sincere appreciation is extended to the Andover City Council, Commissions, and Staff for their assistance and guidance with this project. We appreciate your consideration of this additional request and look forward to an opportunity to further discuss this with you. Sincerely, cJ2(J~. Chris Beberg, President Beberg Landscape Nursery Co. J J (j) , CITY OF ANDOVER ./ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WW\V.CL\NDOVER.MN.US TO: EDA President and Board FROM: John Erar, Executive Director SUBJECT: Andover Station Maintenance Agreement DATE: December 17, 2003 INTRODUCTION Staff has been working with representatives from the 116 LLC Group and United Properties to create a maintenance plan and cost allocation formula. The plan includes maintaining landscaping improvements and general maintenance of common areas in the Andover Station, In support of the maintenance plan, staff has discussed and prepared a cost allocation formula designed to fairly and equitably assign costs for this activity based on property ownership. DISCUSSION Engineering staff, along with the City Attorney, Executive Director and Finance Director have ; developed a plan and cost allocation proposal, which has been reviewed by the other parties, The EDA is also a major land owner in Andover Station and consequently will need to underwrite their portion of costs for maintaining, Once the remaining property is sold by the EDA the allocation formula will shift financial costs to the appropriate parties, Staff is in the process of fInalizing an agreement with United Properties and 116 LLC Group. Given the complexity of the plan relative to cost assignment, staff will review this plan with the EDA Board at the meeting. BUDGET IMPACT Engineer staff has identifIed the following costs attributable to the EDA for Area C of Andover Station. This would include property owned and maintained by the EDA during 2002, Costs for maintenance activities of $13,729,25 plus administrative expenses (13,52%) of 1,856.19 for total cost of $15,585.44. Costs will be underwritten by TIF and EDA Special Revenue funds. Costs allocated to United Properties and the 116 LLC Group will be invoiced separately. ACTION REQUIRED Information has been attached to provide the Board with a preview of the plan and related cost allocation assignments as prepared by the City Engineering Department. Staff will briefly present this information to the Board at the meeting. I Approve 2002 Andover Station maintenance costs of $15,585.44. Engineering staff is also preparing an analysis of costs associated with property maintenance in 2001 for Andover Station. These costs, once fully determined, will brought to the EDA for review and approval at a later date. Respectfully submitted, John Erar / TOTALS ; Area A Area B AreaC 1. $6,432.74 1. $ 0.00 1. $2,144.25 2. 2,068.42 2. 1,059,07 2. 3,592.51 3, 2,746.02 3. 515,71 3. 1,456.52 4. 554.04 4, 283.68 4. 962.28 5, 1,182.79 5, 222.13 5, 627,38 6, 1,714.04 6. 0.00 6. 1,142,70 7. 288.00 7. 0.00 7. 192,00 8, 0.00 8. 0.00 8. 1,218.15 9. 836,00 9. 152.00 9. 532.00 10. 0.00 10. 0.00 10, 1,650,00 11. 95,00 11. 0.00 11. 0.00 12. 398.67 12, 74,87 12. 21116 $16,315.72 $2,307.46 $13,729.25 50.43% 7.13% 42.44% Landscape Maintenance & Lighting Grand Total = $32,352.43 Expenses = $ 4.372.54 = 13.52% 32,352.43 116 Group Area A - $16,315.72 Expenses (13.52%) 2.205.86 $18,521.61 United Property Area B - $2,307.46 Expenses (13.52%) 311.97 $2,619.43 EDA Area C - $13,729.25 Expenses (13.52%) 1.856.19 $15,585.44 O:everyonelBerl<owitzIllvoice Through November2002.doc - - - 1- T- L- .. _ 2 /1 ,i. -' '- , .! l T "AlBNO""," 0 . ~l~ . . . I " I It I "'-~ ~..l *- :' -( ~ iff . 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