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HomeMy WebLinkAboutEDA November 1, 2005 CITY o F NDOVE 1685 CROSSTOWN BOULEVARD N.W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US ECONOMIC DEVELOPMENT AUTHORITY MEETING November 1, 2005 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:30 p.m. 2. Approval of Minutes (10/18/05 Exec. Session; 10/18/05 Regular Mtg.) 3. Letters QfIntentlPurchase Agreements Review 4. Distribute 2006 EDA Budget - Finance 5. Other Business 6. Adjourn @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,Cf.ANDOVER,MN,US TO: Economic Development Authority ~ CC: Jim Diclcinoon, Ex~lltive Directo, ~ FROM: Vicki V Qlk, City Clerk SUBJECT: Approval of Minutes DATE: November 1,2005 INTRODUCTION The following minutes were provided by TimeSaver Secretarial for approval by the EDA: October 18, 2005 Executive Session (JacobsQn, Nowak absent) October 18,2005 Regular Meeting (Jacobson, NQwak absent) DISCUSSION Attached are copies ofthe minutes for your review. ACTION REOUIRED The EDA is requested to approve the above minutes. Respectfully submitted, ~a!b Vicki V olk City Clerk ANDOVER EDA EXECUTIVE SESSION- OCTOBER 18, 2005 MINUTES The Executive Session of the Andover ECQnomic Development Authority was called to order by President Mike Gamache, October 18, 2005, 6:55 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioner present: Mike Knight, Ken Orttel, Julie Trude, Voting resident member Joyce Twistol Councilmember absent: Commissioner Don Jacobson, Voting resident member Robert NQwak Also present: Executive DirectQr Jim Dickinson Community Development DirectQr Will Neumeister City Engineer Dave Berkowitz LETTERS OF INTENTIPURCHASEAGREEMENTS REVIEW President Gamache nQted stafftoQk out the thirty five cents for park dedicatiQn. He wondered what the cQmbined price was for the entire parcel. Mr. Neumeister stated they indicated $5.25 per square foot. They figured the price would be $7.00 to $7.50 in the front to make it $5.25 throughout. CQmmissiQner Trude wondered hQW this compared to what they have done with PlayVentures. Mr. Dickinson stated they need to look at the location of the property. He did not think: this was the prime property because it is not Qn a major roadway. He stated the Rudnicki parcel is a tough parcel and the front parcel would dictate $7.00 to $7.50 a square foot but the one being discussed would nQt. Commissioner Knight indicated they are asking double for the front site. Commissioner Trude stated it disappointed her that Mr. Rudnicki keeps dropping his price. Commissioner Orttel thought $3.50 was a good price. Commissioner Trude stated he was not asking for this. Mr. Dickinson stated they could ask for $4.74 a square foot because $4.34 was not a negQtiated final price. Commissioner Knight stated on the west side of the City, the price is $6.00 a square foot starting. Mr. Dickinson stated in this area, they do nQt have the CQnstant daytime traffic so they cannot justifY the price. Commissioner Trude stated raw land is at $5.25 a square fQQt in this area. Commissioner Trude indicated she was ok with $3.50. Commissioner Orttel wQndered ifthe eighty-nine cents was in addition which would be $4.34 a square foot. Mr. Dickinson thQught EDA Executive Session Meeting Minutes - October 18, 2005 Page 2 they should go back to Mr. Rudnicki with a price of $4.74 including park dedicatiQn of thirty-five cents and eighty-nine cents for street costs and negotiate from that price. Motion by Knight, Seconded by Ortte!, to close the executive Session. Motion carried unanimously. Meeting adjourned at 7:04 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary DRAFT ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING OCTOBER 18, 2005 -MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, October 18, 2005, 6:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, MinnesQta. Present: CommissiQners Mike Knight, Ken Orttel, Julie Trude; Voting resident member Joyce Twistol Absent: Commissioner Don Jacobson, Voting resident member RQbert Nowak; and Advisor to the EDA Edward Schultz Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer Dave Berkowitz Others APPRO V AL OF MINUTES October 4, 2005: Executive Session: CQrrect as amended. Commissioner Trude stated on the second paragraph, fourth sentence they shQuld delete "never". She noted in the first paragraph, the statement was "suggested" and she thought it was more than suggested, they determined the allowable expenses. Mr. Dickinson thQught it was fine with "suggested" . MOTION by Trude, Seconded by Orttel, approval of the Minutes as amended. Motion carried unanimously. October 4, 2005: Regular Meeting: Correct as written. Commissioner Trude stated on the second page, she wanted tQ add her statement of opinion. She wanted to add to the second sentence "she preferred they have more commercial". MOTION by Trude, Seconded by Orttel, approval of the Minutes as amended. MQtion carried unanimQusly. ANDOVER STATION NORTH DEVELOPMENT IMPROVEMENTS - VERBAL This item was skipped by the Commission. Andover Economic Development Authority Meeting Minutes - October 18, 2005 Page 2 LETTERS OF INTENT/PURCHASE AGREEMENTS REVIEW Mr. Neumeister indicated there was an additional thirty-five cents for a park fee, which was nQt told to Mr. Rudnicki so they need to back this out of the cost per square foot. He stated staff made assumptions that it was including it but Mr. Rudnicki had documentation from staff indicating the total price was $4.39 a square foot. Mr. Neumeister stated staffwas concerned with SQme of the sub points in the proposed letter of intent. He reviewed the staff report and supplemental information with the Commission. Commissioner Orttel wondered what item four meant. Mr. Neumeister explained the identification sign planned for the develQpment. CommissiQner Orttel wondered ifitem 12i was strictly site related. Mr. Rudnicki stated he did not want to build something with a zero lQt line and then have something else go in there. He stated he would like the plan to be as close to the plan suggested by the EDA and staff. Mr. Neumeister stated regarding size, the site is much larger than seventy thousand square feet but they made a portion of it public streets, which shrank the lot size. They are talking about a net area, not including the forty feet along the west side and twenty feet alQng the north side. The number in the repQrt of seventy thousand takes it to the middle of the street so his proposal generates $250,000. If they were to back off to a lesser total area they would be selling, it CQmes out to be less than that price. He thought it needs to be clear exactly what square footage they are talking about for pricing. CQmmissiQner Knight wondered ifit is mandatory tQ be at a zero lot line. Mr. Neumeister stated the reason they have done this is because it will provide a larger building and look larger. There would be a uniform look to the buildings. Commissioner Knight wondered what would happen if someQne came in and did not want tQ build to the line. Mr. Neumeister stated whoever purchases the lower parcel could possibly reconfigure the parcel. President Gamache stated the way the road is being laid out, this configuration is probably the ideal Qne. Mr. Neumeister stated that is CQrrect. Commissioner Trude noted she would like to keep the door open for other configurations if needed. Mr. Rudnicki made a brief presentation to the Commission. Mr. Rudnicki indicated he would be willing to be flexible Qn the building on the southern property but he thought the southern property should have similar building materials, height and Andover Economic Development Authority Meeting Minutes - October 18, 2005 Page 3 the same architectural review along with the EDA. CQmmissioner Trude wondered what would happen if a restaurant would want to build on the south property. Mr. Rudnicki indicated he would be willing to be flexible but WQuld not want the view to be blocked. Mr. Dickinson stated if there is a zero lot line, they would probably want to put together a common interest cQmmunity. Commissioner Knight wondered ifthere was a different use on the south property, such as a restaurant, would Mr. Rudnicki still require consistent material. Mr. Rudnicki stated he would not. President Gamache asked for clarification on item 13. Mr. Rudmcki explained the reason this was in the proposal. Motion by Gamache, seconded by Trude, to go into Executive Session at 6:55 p.m. to discuss Mr. Rudnicki's proposal. MQtion carried unanimously. The EDA returned from the executive sessiQn at 7:04 p.m. with the EDA providing directiQn to staff. Commissioner TwistQl indicated she has a problem with 12c. OTHER BUSINESS There was nQne. Motion by Knight, Seconded by Orttel, to adjourn. Motion carried unanimQusly. The meeting adjourned at 7:05 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary - (}) 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 ~ FROM: Jim Dickinson, Executive Director Will N,=oi,t", Direoto< of Commumty ~"opm'ot I.ul- SUBJECT: Letter Qf Intent/Purchase Agreements Review DATE: November 1, 2005 INTRODUCTION The "Letter of Intent" provided at the last EDA meeting on October 18, 2005 has been slightly modified by Mr. Rudnicki and is attached for YQur review. Mr. Rudnicki will be present at the meeting to explain his proposal and further details regarding the dry cleaner business. His proposal equates to a purchase price that totals $4.59 per square foot. As you will recall, at the last meeting Mr. Rudnicki's proposal was for a total purchase price of$3.89 per square fOQt. DISCUSSION Staff reviewed the terms in the proposed letter of intent and concurs with all but one point in the purchase agreement. The only issue is related to paragraph 12.e. and what type of signs will be allowed for the area Mr. Rudnicki is proposing to purchase. In discussing this with Mr. Rudnicki he Qffers the following explanation for why it is written as it is: "The last sentence in the paragraph was to include additional language that would prohibit us from using both the ASN Area ID sign and the Boulevard Monument. In 12e I am specifically requesting a separate Boulevard Monument sign for the sole use by Lot 5, Block 3 tenants (ie, there would be two monument signs on Bunker Lake BlvdJ. The one in the SE corner would be the ASN Area ID sign for those businesses in ASN other than Lot 5, Block 3; and the one in the SW corner only for the retail tenants of Lot 5, Block 3. Because we have our own sign, we would not use the ASN Area ID sign." Staff feels that the EDA needs tQ discuss this further and provide direction. ACTION REOUESTED Staff recommends the purchase price of $4.59 per square fOQt be accepted by the EDA. Staff requests the EDA hear Mr. Rudnicki's latest presentation and comment on the various points that he makes in the "Letter QfIntent". Ifneeded, the EDA may move to closed session to discuss the points that have been presented. Upon completion of the discussion/reconvening the EDA needs to provide staff direction on whether there is interest in preparing a purchase agreement with Mr. Rudnicki. Respectfully submitted, Will Neumeister ~ Attachment Louis Rudnicki's Letter QfIntent October 26, 2005 Mr. Will Neumeister City of AndQver 1685 Crosstown Blvd. N.W. Andover, MN 55304 RE: Purchase and development QfNorthern 195 feet of Lot 5, Block 3, Andover Station North. Dear Mr. Neumeister, This letter is a proposal for the purchase ofa parcel ofland (Northern 195 feet of Lot 5, Block 3, Andover Station North) frQm the City of Andover and its subsequent development into retail space. This letter is intended to outline terms to be incorporated intQ 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 if Gross (56,240 if Net) 5. PRICE: Two Hundred Fifty Eight Thousand One Hundred Forty-One Dollars and Sixty Cents ($258,141.60) or Four Dollars and Fifty-Nine Cents ($4.59) per square foot of net useable land, payable at closing. This represents a per square foot price of $4.59 ($3.85 per square foot for property and park dedication plus $0.74 per square foot for assessments to include street, storm sewer, sanitary sewer, water main, right turn lane, and constructiQn restoration) and shall be a<jjusted based on the actual useable net square footage ofthe land. 6. CLOSING: Closing 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 Qfthe following items: . A copy ofthe survey ofthe property, including topography after remediation and mass grading, to be provided by the City of Andover. . Current Title CQmmitment or updated Abstract. . Copies of any building and site development plans, restrictions, covenants and specifications, if available. . Phase I and Phase 11 environmental reports for the entire site. . Brown Field Certificate QfCQmpletion from the PQllution Control Agency. -2..- 7.(cont.) SELLER's delivery ofthe aforementiQned items is to allQw the BUYER 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 cancelled and any earnest money posted by BUYER shall be returned to BUYER. 8. MASS GRADING & UTILITIES: Property shall be delivered with mass grading completed and all utilities available at the perimeter ofthe parcel. 9. TAXES & ASSESMENTS: All taxes shall be prorated as of the day of closing. The property shall 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. II. INTENDED USE: The parties acknowledge that the intended use ofthe property WQuld be the construction of a 8,000 to 10,000 square foot cQmmercial 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. The architecture of the facility would incorpQrate some ofthe conceptual design elements QfExhibit A and Exhibit C. Exhibit B is a scaled version Qfthe concept plan for site layout. 12. CONDITIONS PRECEDENT TO CLOSING: BUYER shall receive from the City of Andover the following: a. Approval for a commercial service/retail development with architectural integrity consistent with the concepts shown in Exhibits A and C, including, but not limited to, the above referenced intended uses. b. Approval for a neighborhood dry cleaning service with on-site processing. c. Approval for direct accesses to and from both Ibis Street and 138th Avenue. d. Approval QfPreliminary Plat, Final Plat, Commercial Site Plan, and zero-lot-line construction on the south property line per Exhibit B. e. ApprQval for a monument sign along Bunker Lake Boulevard, other than the I"~ AndQver StatiQn North Area ID sign, to be divided based on a percentage of O-~ - J tJ.bc.l l=able "IMre footage between tbe t~ """el, of Lot 5, Block 3, Aodov", ] I/JUI Station North. Use of the boulevard monument sign shall preclude all owners of Lot 5, Block 3, Andover Station North from using the AndQver Station North " Area ID sign. . f. Encumbrances, covenants and easements on the southern 303 feet of Lot 5, Block 3, Andover Station North: I. Ifzero-lot-line construction is used on the southern 303 feet of Lot 5, Block 3, Andover Station North, building design, layout and construction must be similar to that Qf the 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 cQlors), building height, signs, and landscaping. BQulder Point, LLC and the AndQver EDA shall have the right to Architectural approval. --g~ 2. Ifzero-lot-Iine construction is not used on the southern 303 feet of Lot 5, Block 3, Andover StatiQn North, continuity of parking, traffic flow and access between the two IQts must be maintained. 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 Qfthe boulevard monument sign with the allocated area to be granted as a percentage ofleasable square footage and based on the maximum total square footage of boulevard sign aIlowed under the Andover StatiQn North Design Standards. The AndQver 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. 4. 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 QfLot 5, Block 3, Andover Station North, north and west ofa line starting at the southwest property comer of Lot 5, Block 3, Andover Station North proceeding N 38043'21.4" E, as shown on Exhibit B. 5. 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 ofthis letter and the Purchase Agreement in strict cQnfidence both before and after closing, except in the course Qf 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 ofthe parties acknowledges that this is a Letter ofIntent only and shall not be binding until a written Purchase Agreement is executed by bQth parties. Please acknowledge your acceptance ofthis Letter ofIntent 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 fQrward tQ working with the City of AndQver Qn this IQcation. Sincerely, Louis Rudnicki Acknowledged this day of ,20_ City of Andover, Minnesota By: Printed Name: Title: -7"- EXHIBIT A (Design Elements) Exterior lighting on the front and sides Qf the building will incorporate a style similar to that shown below: Construction materials will be a combination of rough-faced blQck, brick, and stucco similar to the materials depicted in the pictures below: -5- Exhibit B (Concept Plan 1 Lot 5, Block 3, Andover Station North City of Andoyer Anoka County, Minnesota N Submitted by Boulder Point, LLC W*E October 26, 2005 s : . ~;~~~~i~~~ .. I i:22~~~;~~~ .- I I :G:iot~~~~lt. I I I - "'~ -- :';..:~ ;"'~~.:: ,.....:.. < ......: ,.t~r:;.;.' 2~~~~?~~f :...... ~f;.:.:t ., , j;.f~-I -,'~ .-:.........~-.....:-~-~.. - '1-.~ .... ~~~i~~~~ii~t -'J~":'::I ..;:: 1;.:;i " '"1-::;.>~f ~,:;~;-~;~~;~s.:? -,,, '1',:;;, ::;r;;:~;':'}f;;:-:~ .,' :-1.~:;': <- ~ ~.. .-." ,. -.. :1>::1 -" "'--~...:.'''"'-:~~':"-''':~~ .. . .f....., 1~~3 '.. ;::::.::::1 .. -, ~F"':.' 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