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HomeMy WebLinkAboutEDA October 18, 2005 'ANDbVE~ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US ECONOMIC DEVELOPMENT AUTHORITY MEETING October 18, 2005 6:30 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:30 p.m. 2. Approval of Minutes (10/04/05 Exec. Session; 10/04/05 Regular Mtg.) 3. Andover Station North Development Improvements - Verbal 4. Letters of IntentJPurchase Agreements Review 5. Other Business 6. Adjourn ~\NDbVE~ @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Economic Development Authority CC: Jim Dickinson, Executive Director ~ FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: October 18, 2005 INTRODUCTION The following minutes were provided by Staff for approval by the EDA: October 4, 2005 Executive Session October 4, 2005 Regular Meeting DISCUSSION Attached are copies of the minutes for your review. ACTION REOUIRED The EDA is requested to approve the above minutes. Respectfully submitted, LLL. U4 Vicki V olk City Clerk ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING OCTOBER 4, 2005 - MINUTES A Regular Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache at 6:00 p.m., Tuesday, October 4,2005 at the Andover City Hall, 1685 Crosstown Boulevard N.W., Andover, Minnesota. Commissioners Present: Don Jacobson, Mike Knight, Ken Orttel, Julie Trude, Robert Nowak, Joyce Twistol Commissioners Absent: Edward Schultz, Advisor to the EDA Also Present: Jim Dickinson, Executive Director Dave Berkowitz, City Engineer Barry Sullivan, City Attorney Will Neumeister, Community Development Director APPRO V AL OF MINUTES Motion by Jacobson, seconded by Orttel to approve the minutes of September 20,2005 as written. Motion carried unanimously. ANDOVER STATION NORTH DEVELOPMENT IMPROVEMENTS Mr. Neumeister noted that the sewer and water are installed in the Block 3 area. He has been getting inquiries regarding office/showroom developments. Commissioner Orttel asked if the EDA is subdividing the lots. Mr. Neumeister stated that we would split them. He noted that Tony Howard came in to discuss what they could do with the long part of the Tramm I parcel, noting that he could get two buildings in there. That would bring the number of buildings to twelve. Mr. Dickinson noted that they were concerned about getting utilities in there. They could get townhomes to fit. Commissioner Jacobson asked how we are doing with Andover Station South. Mr. Neumeister explained that there is one building left and Mr. Howard is looking to sell the whole unit. Mr. Dickinson did forward a lead to Mr. Howard for that building. He asked the EDA if they should go the residential or office space route. Commissioners Jacobson and Knight felt that residential would be best. Commissioner Knight stated that a pitched rooflike Mr. Howard has on his buildings would be the way to go. Commissioner Orttel stated that the access is the concern. Mr. Neumeister explained that it's going to be landlocked unless we work with Bruggeman. EDA Meeting October 4, 2005 Minutes - Page 2 Commissioner Trude thought that the EDA needs to get some cross easements for access for their driveways. Mr. Neumeister stated that we are within a week of the when the land swap with Pov's will happen. Commissioner Trude asked how Bruggeman is doing. Mr. Dickinson noted that when he spoke to Paui he was very positive. Commissioner Jacobson asked if Mr. Howard wants the EDA to come back with a counter offer on the Play Ventures parcel. Mr. Dickinson stated yes. He thought that we have a number that would work. Commissioner Trude asked if we have heard anything new from the PCA. Mr. Berkowitz stated that we are looking for a letter of completion on that site. Once the soil borings come in Bruggeman is going to want to see those reports. Commissioner Twistol asked if Bruggeman has an obligation to inform his buyers. Mr. Neumeister stated yes. Commissioner Orttel also noted that that information is in the deed. Mr. Neumeister noted that Mike Casey is waiting on the letter of completion from the PCA. Regarding the restaurant site north of the bank, everyone Devon Walton has talked to wasn't interested because there isn't enough daytime traffic. There is one person in Iowa who would be interested in opening on weekends and evenings only. Commissioner Knight stated that he talked with the Perkin's representative who said there isn't enough daytime traffic. Mr. Neumeister noted that Culvers isn't interested in the site north of the bank either. LETTERS OF INTENTIPURCHASE AGREEMENTS REVIEW Mr. Neumeister noted that we may have a letter of intent for the meeting on the 18th for either Oppidan lor Lot 2 that would be for light industrial and some retail. Commissioner Trude asked if we have heard'anything from the dry cleaners. Mr. Neumeister noted that he told the dry cleaner that we need to see the information regarding the chemicals. The EDA recessed at 6:20 p.m. and went into an Executive Session. The EDA reconvened at 6:41 p.m. EDA Meeting - October 4, 2005 Minutes - Page 3 Motion by Jacobson, seconded by Orttel to adjourn. Meeting adjourned at 6:42 p.m. Respectfully submitted, Vicki V olk City Clerk ~NDbVE~ @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: EDA President and Board G FROM: Jim Dickinson, Executive Director ~ 1 Will Neumeister, Director of Community Developmenta/aCr- SUBJECT: Letter of IntentJPurchase Agreements Review DATE: OctQber 18, 2005 INTRODUCTION Louis Rudnicki will be present at the meeting to provide answers to any questions that the EDA may have. He will present his rationale on why the EDA should consider his latest "Letter of Intent". As you will recall from the last discussion, he would like to develop a retail strip center that would be at least 7,500 square feet in size, with expansion potential. EDA is requested to hear his information and comment on whether there is interest in preparing a purchase agreement. No other new "Letters of Intent" have been received. DISCUSSION Provided the EDA agrees to the terms and conditions contained in Mr. Rudnicki's "Letters of Intent", the EDA would need to authorize the City Attorney to prepare a purchase agreement. ACTION REOUESTED Staff requests the EDA to hear Mr. Rudnicki's presentation and comment on whether there is interest in preparing a purchase agreement with him on a land sale. Respectfully submitted, a----L Will Neumeister Attachment Newest "Letter ofIntent" from Mr. Louis Rudnicki October 13, 2005 Mr. Will Neumeister City of Andover 1685 Crosstown Blvd. N.W. Andover, MN 55304 RE: Purchase and development of Northern 195 feet of Lot 5, Block 3, Andover Station North. Dear Mr. Neumeister, This letter is a proposal for the purchase of a parcel of land (Northern 195 feet of Lot 5, Block 3, Andover Station North) from the City of Andover and its subsequent development into retail space. This letter is intended to outline terms to be incorporated into a mutually acceptable Purchase Agreement as follows: 1. SELLER: City of Andover 2. BUYER: Boulder Point, LLC 3. LEGAL DESCRIPTION (metes and bounds): The Northern 195 feet of Lot 5, Block 3, Andover Station North 4. SIZE: Approximately 70,429 ft2 5. PRICE: Two Hundred Fifty Eight Thousand Five Hundred Twenty Nine Dollars ($258,529.00) or Three Dollars and Eighty-Nine Cents ($3.89) per square foot of use able land, payable at closing. This represents a per square fOQt price of$3.89 ($3.00 per square foot for property and park dedication plus $0.89 per square foot for assessments to include street, storm sewer, sanitary sewer, water main, right turn lane, and construction restoration) and shall be adjusted based on the actual useable square footage of the land. 6. CLOSING: CIQsing shall be on or about April 1, 2006 with construction to begin immediately thereafter. At closing, SELLER shall convey marketable fee title free of all leases, mortgages, and other encumbrances and restrictions. 7. DUE DILIGENCE: BUYER shall have 120 days from the execution ofthe purchase agreement and SELLER'S delivery ofthe following items: . A copy of the survey ofthe property, including topography after remediation and mass grading, to be provided by the City of Andover. . Current Title Commitment or updated Abstract. . Copies of any building and site development plans, restrictions, covenants and specifications, if available. . Phase I and Phase II environmental reports for the entire site. . Brown Field Certificate of Completion from the Pollution Control Agency. to review the suitability of the property for BUYERS intended use. If for whatever reason BUYER determines the property is not suitable, the Purchase Agreement is canceIled and any earnest money posted by BUYER shaIl be returned to BUYER. 8. MASS GRADING & UTILITIES: Property shaIl be delivered with mass grading completed and all utilities available at the perimeter ofthe parcel. 9. TAXES & ASSESMENTS: AIl taxes shaIl be prorated as of the day of closing. The property shaIl be delivered by SELLER free of any Special Assessments. 10. BROKERAGE: BUYER and SELLER represent that neither party is represented and no brokerage commissions are due. I 1. INTENDED USE: The parties acknowledge that the intended use ofthe property would be the construction of a 8,000 to 10,000 square foot commercial service/retail facility fronting south and west with a zero-lot-line construction on the south property line. Possible tenants include a dance studio, neighborhood dry cleaner with on-site processing, and a tenant with a possible drive-thru use. This facility would incorporate some of the design elements described in the photographs in Exhibit A. Exhibit B is a scaled versiQn of the concept plan for site layout. 12. CONDITIONS PRECEDENT TO CLOSING: BUYER shaIl receive from the City of Andover the foIlowing: a. Approval for commercial service/retail development including the above referenced intended uses. b. Approval for a neighborhood dry cleaning service with on-site processing. c. An agreement that the Andover EDA shaIl place a restrictive covenant on any other land it owns, develops, or seIls prohibiting on-site dry cleaning processing. d. Approval for a direct access to and from Ibis Street and a direct access to and from 138th Avenue. e. Approval of Preliminary Plat, Final Plat, and Commercial Site Plan. f. Approval for zero-lot-line construction on the south property line. g. Approval for use of geothermal ground loop HV AC system. h. Approval for a monument sign along Bunker Lake Boulevard to be divided based on a percentage ofIeasable square footage between the two parcels of Lot 5, Block 3, Andover Station North. J. Encumbrances, covenants and easements on the southern 303 feet of Lot 5, Block 3, Andover Station North: 1. The southern 303 feet of Lot 5, Block 3, Andover Station North shaIl not be further subdivided and shaIl remain designated as a commercial service/retail use only. 2. Building design, layout and construction on the southern 303 feet of Lot 5, Block 3, Andover Station North must be similar to that ofthe structure on the northern 195 feet of Lot 5, Block 3, Andover Station North. This includes, but is not limited to building materials (textures and colors), building height, signs, and landscaping. Boulder Point, LLC and the Andover EDA shaIl have the right to Architectural approval. 3. The owner of the building on the Northern 195 feet of Lot 5, Block 3, Andover Station North shall have the right to use of the boulevard monument sign with the allocated area to be granted as a percentage of leasable square footage and based on the maximum total square footage of boulevard sign allowed under the Andover Station North Design Standards. 4. The Andover EDA shall share in the cost ofthe construction ofthe boulevard monument sign on a leasable square foot percentage based on assuming 20,000 square feet of retail space on the southern portion of Lot 5, Block 3, Andover Station North. 5. No building, boulevard sign, landscaping or other structure may be erected on the southern 303 feet of Lot 5, Block 3, Andover Station North, such that it blocks the view ofthe northern 195 feet of Lot 5, Block 3, Andover Station North, north and west ofa line starting at the southwest property corner of Lot 5, Block 3, Andover Station North proceeding N 38043'21.4" E. 6. A cross-access agreement between the'two parcels of Lot 5, Block 3, Andover Station North. 13. CONFIDENTIALITY: Each ofthe parties (and their respective agents and representatives) will keep the existence and terms of this letter and the Purchase Agreement in strict confidence both before and after closing, except in the course of conveying necessary information to third parties directly involved in the transaction and except as may be required by law or otherwise mutually agreed upon in writing by the parties. 14. NON-BINDING: Each of the parties acknowledges that this is a Letter ofIntent only and shall not be binding until a written Purchase Agreement is executed by both parties. Please acknowledge your acceptance of this Letter of Intent by signing one of the enclosed copies and returning it to my attention. Thank you for your assistance in the process and your consideration for the proposed use. I look forward to working with the City of Andover on this location. Sincerely, Louis Rudnicki Acknowledged this day of ,20_ City of Andover, Minnesota By: Printed Name: Title: EXHIBIT A (Desil~n Elements) Exterior lighting on the front and sides of the building will incorporate a style similar to that shown below: Construction materials will be a combination of rough-faced block, brick, and stucco similar to the materials depicted in the pictures below: Exhibit B (Concept Plan 1 LotS, Block 3, Andover Station North City of Andover Anoka County, Minnesota N Submitted by Boulder Point, LLC w*. October 13, 2005 s : f~~ lfI lita :f:~f~>t ~.--:;""<::;'''~,<,,'''''''',-': :GeothEmnaIC- 7"':;; ;;..;,....~ ~ ;......_~:=.;.;;.,-..;.~- -; ~~~~~~=tI .- ",.: - i-~~-~~~~~i~~, ." " -. 3~~t1~~~ .. " '. .- ~. .~~ ,"... _.. 0- '-~. -" "_~;...:"".:-:-.~'--...::.~y::.: .. - ~- ~..I :f~~f .. : ::~~;:.:: .. ~r:::~ :: .- ~r:.:~r -. ~F~..':r i,Ii :P:::j. ~~f~:' :r r -~ .,~:-- ,,- ..-,- ... ~.- I I $11. ..::~- I I I I I I .. I I ., . I I ;~Jr:~: 1:- '~"l' .. ~= ~ " l'~1~~~1i~~1!~~1II~~~~~~ 50 25 0 50 100 ~- 'Feet ~NDbVE~ 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER.MN,US TO: EDA Board Members FROM: Jim Dickinson, City Administrator SUBJECT: Supplemental Agenda Items for October 18, 2005 EDA Meeting DATE: October 18, 2005 The Economic Development Authority is requested to review the supplemental material for the following Agenda Items: Accept Additional Item Information Item #4. Letter of Intent/Purchase Agreements Review (Supplemental) ~NDbVE~ 1685 CROSSTOWN BOULEVARD N.W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: EDA President ood Boon! ~ FROM: Jim Dickinson, Executive Directo Will Neumeister, Director of Community Development SUBJECT: Letter of Intent/Purchase Agreements Review (Supplemental) DATE: October 18, 2005 INTRODUCTION To refresh the EDA members memory, at various times over the last two months, staff has indicated to Mr. Rudnicki that he would need to provide a purchase price that was at least $3.50 per square foot with an additional $0.35 per square.foot park dedication fee and $0.89 per square foot payment that would cover the special assessments for building the public street, turn lane and public utilities to serve the parcel that he is trying to acquire, totaling $4.74 per square foot. DISCUSSION Staff has issues with the terms in the proposed letter of intent that include the following conditions: 12 (t). ; and 12 (i). 1.,4.,5. Staff would like to comment that the 12(t) condition just needs to be clarified to indicate "per the attached schematic drawing". The 12 (i) conditions are more difficult to resolve. The City EDA may need to preserve the ability to subdivide the remainder of Lot 5 and should not give up that right. The sign that is being proposed to serve Lot 5 must also serve as the Area Identification Sign for the rest of the development. Thus the percentage that will be devoted to Mr. Rudnicki's proposed site may need to be much smaller than what is being proposed here. Lastly, the condition (#5) that does not allow Mr. Rudnicki's site to be blocked by "no building, boulevard sign, landscaping or other structure on the southern 303 feet of Lot 5" is too restrictive. Virturally anything that is built on the southern portion of Lot 5 will create some form of blocked view of Mr. Rudnicki's proposed retail development. This condition cannot be accepted. ACTION REQUESTED Staff requests the EDA to hear Mr. Rudnicki's presentation and comment on whether there is interest in preparing a purchase agreement. If needed the EDA may move to closed session to discuss the points that have been presented. Respectfully submitted, evel- Will Neumeister