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HomeMy WebLinkAboutEDA July 27, 2000 CITY OF ANDOVER REQUEST FOR EDA ACTION DATE: July 27. 2000 AGENDA SECTION ORIGINATING DEPARTMENT Approval of Minutes City CleO~'JV ITEM NO. Approval of Minutes The Economic Development Authority is requested to approve the following minutes: July 5, 2000 Regular EDA Meeting CITY OF ANDOVER REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION DATE: luly 27.2000 / AGENDA SECTION ORIGINATING DEPARTMENT Discussion Community Development ITEM NO. 1 David L. Carlberg Public Hearing: Lot Sale Community Development Director Lot 2, Block I, Andover Commercial Park The Economic Development Authority (EDA) was scheduled to hold a public hearing on the sale of Lot 2, Block 1, Andover Commercial Park. However, staff in reviewing the statutes on the sale of property by the EDA (Minnesota Statutes 469.105) has discovered that the hearing notice published did not comply with hearing notice requirements set out in 469.105 (attached). Therefore, the EDA is requested to discuss the proposals received by the June 30, 2000 deadline, select a buyer and call for the public hearing for August 15,2000 at 6:30 p.m, As the EDA is aware, the availability of the lot was advertised and letters soliciting proposals were sent to prospective buyers (letter attached), Attached are the two proposals received from Greg Howard, President of Northwest Commercial LLC and from Anthony Emmerich, AJE / Companies for EDA review and discussion. 469.103 ECONOMIC DEVELOPMENT 1032 amount the authority considers necessary to establish an initial reserve to pay principal and interest on the bonds. The authority shall state in a resolution how the bonds and their at- tached interest coupons are to be executed. Subd, 2, Form, The bonds of each series issued by the authority under this section shall bear interest at a rate or rates, shall mature at the time or times within 20 years from the date of issuance, and shall be in the form, whether payable to bearer, registrable as to principal, or fully registrable, as determined by the authority, Section 469.102, subdivision 6, applies to 'I bonds issued under this section, and the bonds and their coupons, if any, when payable to 'rer, shall be negotiable instruments. Subd. 3, Sale, The sale of revenue bonds issued by the authority shaH be at public or _ ,ate sale. The bonds may be sold in the manner and for the price that the authority deter- mines to be for the best interest of the authority. The bonds may be made caHable, and if so issued, may be refunded, Subd, 4, Agreements, The authority may by resolution make an agreement or covenant with the bondholders or their trustee. The authority must first decide that the agreement or covenant is needed or desirable to do what the authority may do under this section and to ... assure that the revenue bonds are marketable and promptly paid. Subd. 5. Revenue pledge, In issuing general obligation or revenue bonds, the authority may secure the payment of the principal and the interest on the bonds by a pledge of and lien on authority revenue. The revenue must come from the facility to be acquired, constructed, or improved with the bond proceeds or from other facilities named in the bond-authorizing res- olutions. The authority also may secure the payment with its promise to impose, maintain, and coHect enough rentals, rates, and charges, for the use and occupancy of the facilities and for services fumished in connection with the use and occupancy, to pay its current expenses to operate and maintain the named facilities, and to produce and deposit sufficient net reve- nue in a special fund to meet the interest and principal requirements of the bonds, and to col- lect and keep any more money required by the resolutions. The authority shall decide what constitutes "current expense" under this subdivision based on what is normal and reasonable under generally accepted accounting principles, Revenues pledged by the authority must not be used or pledged for any other authority purpose or to pay any other bonds issued under this section or under section 469.102, unless the other use or pledge is specificaHy authorized in the bond-authorizing resolutions. Subd. 6, Not city debt, Revenue bonds issued under this section are not a debt of the authority's city nor a pledge of that city's fuH faith and credit. The bonds are payable only from project revenue as described in this section. A revenue bond must contain on its face a statement to the effect that the economic development authority and its city do not have to pay the bond or the interest on it except from revenue and that the faith, credit, and taxing power of the city are not pledged to pay the principal of or the interest on the bond. Subd. 7, Not applicable. Sections 469.153, subdivision 2, paragraph (e), and 469.154, subdivisions 3, 4, and 5 do not apply to revenue bonds issued under this section and sections 469.152 to 469.165 ifthe interest on the revenue bonds is subject to both state and federal income tax or if the revenue bond proceeds are not loaned by the authority to a private person. Subd, 8, Tax increment bonds, Obligations secured or payable from tax increment rev- 1- enues and issued pursuant to this section or section 469.102 are subject to the provisions of section 469.178, History: 1987 c 291 s 104 469,104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES. Sections 474A,Ol to 474A,21 apply to obligations issued under sections 469.090 to 469.108 that are limited by a federal limitation act as defined in section 474A,02, subdivision 9. or existing federal law as defined in section 474A.02. subdivision 8, History: 1987 c 291 s 105 ~~ 469.105 SALE OF PROPERTY. Subdivision 1. Power, An economic development authority may seH and convey prop- erty owned by it within the city or an economic development district if it determines that the .i 1033 ECONOMIC DEVELOPMENT 469.106 ,.Ie and conveyance are in the best interests of the city or district and its people, and that the .ansaction furthers its general plan of economic development. This section is not limited by other law on powers of economic development authorities. Subd, 2. Notice; hearing, An authority shall hold a hearing on the sale, At the hearing a taxpayer may testify for or against the sale, At least ten, but not more than 20, days before the hearing the authority shall publish notice of the hearing on the proposed sale in a newspaper. The newspaper must be published and have general circulation in the authority's county and city. The notice must describe the property to be sold and state the time and place of the hear- ing. The notice must also state that the public may see the terms and conditions of the sale at the authority's office and that at the hearing the authority will meet to decide if the sale is advisable. Subd. 3. Decision; appeal. The authority shall make its findings and decision on wheth- er the sale is advisable and enter its decision on its records within 30 days of the hearing. A taxpayer may appeal the decision by filing a notice of appeal with the district court in the city or economic development district's county and serving the notice on the secretary of the au- thority, within 20 days after the decision is entered. The only ground for appeal is that the action of the authority was arbitrary, capricious, or contrary to law. Subd, 4. Terms. The terms and conditions of sale of the property must include the use that the bidder will be allowed to make of it. The authority may require the purchaser to file security to assure that the property will be given that use, In deciding the sale terms and con- ditions the authority may consider the nature of the proposed use and the relation of the use to the improvement of the authority's city and the business and the facilities of the authority in general. The sale must be made on the authority's terms and conditions. The authority may publish an advertisement for bids on the property at the same time and in the same manner as the notice of hearing required in this section. The authority may award the sale to the bid con- sidered by it to be most favorable considering the price and the specified intended use. The authority may also sell the property at private sale at a negotiated price if after its hearing the authority considers that sale to be in the public interest and to further the aims and purposes of sections 469.090 to 469.108. , Subd. 5. One-year deadline, Within one year from the date of purchase, the purchaser / shall devote the property to its intended use or begin work on the improvements to the proper- ty to devote it to that use. If the purchaser fails to do so, the authority may cancel the sale and title to the property shall return to it. The authority may extend the time to comply with a condition if the purchaser has good cause. The terms of sale may contain other provisions that the authority considers necessary and proper to protect the public interest. A purchaser must not transfer title to the property within one year of purchase without the consent of the authority, Subd, 6. Covenant running with the land, A sale made under this section must incor- porate in the deed as a covenant running with the land the conditions of sections 469,090 to 469,108 relating to the use of the land. If the covenant is violated the authority may declare a breach of the covenant and seek a judicial decree from the district court declaring a forfeiture and a cancellation of the deed. Subd. 7, Plans; specifications, A conveyance must not be made until the purchaser gives the authority plans and specifications to develop the property sold. The authority must approve the plans and specifications in writing. The authority may require preparation of fi- nal plans and specifications before the hearing on the sale. History: 1987 c 291 s 106 469,106 ADVANCES BY AUTHORITY, An authority may advance its general fund money or its credit, or both, without interest, for the objects and purposes of sections 469,090 to 469.108. The advances must be repaid from the sale or lease, or both, ,of developed or redeveloped lands. If the money advanced for the development or redevelopment was obtained from the sale of the authority's general ob- ligation bonds, then the advances must have not less than the average annual interest rate that is on the authority's general obligation bonds that are outstanding at the time the advances are made, The authority may advance repaid money for more objects and purposes of sections , ~ City of Andover Commercial Park Andover Lot 2, Block 1 ".. , ":" ,',....,,' """"::: :;::",:.,"':;::- ::-i"31,,'!"'M -' .,_,'" ,"~:..",.. ';,\""" "'-' ,"::, U,,' ,', ,.. '.:::: :'" "", " ,'''':' ....,. r~r:,,", ;,_~ O!: ~"~ . 1376' . ""'. , ':c. ~ '-"'.. ','. '," ,'i' . . 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Andover, MN 55304 763-754-2910 RECEIVED June 29, 2000 JUN 2 9 2000 City of Andover CITY OF ANDOVER Attn: Dave Carlberg We at Northwest Commercial are interested in purchasing lot 2, block I, of Andover Commer- cial Park. For the purchase price of $1.10 per square foot of build-able land. With the inten- tion of building office and warehouse space for Consolidated Concrete & Masonry, United Siding & Roofing and Armour Die Cutting Service, The structure will be all masonry exterior. / The 3 units will consist of approximately 18000 square feet with secured parking in rear (Per Andover Code), Consolidated Concrete & Masonry currently has 30 employee's and rents space in Andover. United Siding has roughly 20 subcontracting crews currently employed and rents space in Andover, Armour Die Cutting Service has 3 employees and currently rents in Maple Grove. All 3 Business's are in desperate need of more office/warehouse space and secured parking and would like to continue to run their business's in Andover. Northwest Commercial is will- ing to maintain and improve the appearance ofthe drainage pond abutting Bunker Lake Boule- vard with trees, shrubbery's and a retaining wall to screen the secured parking area and to cre- ate curb appeal from Bunker Lake Boulevard. We look forward to working with the City of Andover and your staff. Feel free to call with any questions. Cell # 328-7526 or 427-7510. Sincerely, Greg Howard President AJE COMPANIES INC. 1875 Commercial Blvd. NW RECeiVED Building #1 Andover, MN 55304 (763) 755-6554 JUN 2 9 2000 June 27, 2000 CITY OF ANDOVER City of Andover EDA 1685 Crosstown Blvd. Andover, MN 55304 Re: Bid for Lot 2, Block 1, Andover Commercial Park. 1. The intended use of the property is OfficelWarehollse. 2. The type and size of the building will be designed to the site and similar to the existing building at the SW corner of Hanson Blvd. & Commercial Blvd. 3. The bid price per square foot is $1.00 for usable land outside all easements. 4. Assessments to be paid by seller. 5. Existing wells and septic to be sealed and abandoned by seller. Anthon J. Emmerich AJE Co anies Inc. CITY OF ANDOVER REQUEST FOR ECONOMIC DEVELOPMENT AUTHORITY ACTION DATE: luly 27. 2000 AGENDA SECTION ORIGINATING DEPARTMENT Discussion Community Development ITEM NO.2 David L. Carlberg Discuss Redevelopment Plan Community Development Director Bunker Lake Blvd. & Crosstown Blvd. The Leonard Parker & Associates The Economic Development Authority (EDA) is requested to discuss the redevelopment plan for the area north of Bunker Lake Boulevard NW between Crosstown Drive and Crosstown Boulevard NW. The Leonard Parker and Associates will be presenting the latest concept or master plan for the area to the EDA.