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HomeMy WebLinkAboutEDA - November 21, 2023_t�N DO VVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING November 21, 2023 6:00 p.m. Conference Room A and B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (September 19, 2023 Regular) - Administration Review EDA Tax Increment Projects Fund - Administration 4. Approve LMCIT Liability Coverage - Administration 5. Andover Home Improvement Grant Program Update - Planning 6. Review Commercial Project Activity -Planning 7. Closed Session: Bunker Redevelopment Property Negotiations -Administration 8. Other Business 9. Adjournment 0 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Economic Development Autho CC: Jim Dickinson, City Administrat FROM: Michelle Hartner, Deputy City Cler SUBJECT: Approval of Minutes DATE: November 21, 2023 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: September 19, 2023 Regular The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: Minutes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING— SEPTEMBER I9, 2023 - MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Sheri Bukkila September 19, 2023, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Commissioners Absent: Also present: Jamie Barthel (arrived Randy Nelson, Kari K None EDA Executive Mr. Janish stated staf cutting a check to the home improvement p: Ted Butler, Rick Engelhardt, , Joe Janish ;er. Dave Berkowitz minutes as written. Motion carried UPDATES received, based on property values, eight of the ys and siding are the two most frequent requests. W-9 form which means the Finance Department will be Mr. Janish presented before and after pictures of the Mr. Dickinson stated there is interest in the program. Mr. Janish indicated with the current applicants the funds will be consumed for the program this year. President Bukkila stated she would like the before and after pictures to continue for each finished project. COMMERCIAL PROJECT ACTIVITY Mr. Janish updated on the following: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Andover Economic Development Authority Meeting Minutes — September 19, 2023 Page 2 Clocktower Commons, 15190 Bluebird Street — Staff have met with the owner/developer who is working on plans to build on the final pad. Costs came back higher than expected as they looked at construction costs and are currently re-evaluating the building. The developer is aware and plans to have a clock on the building. Interest in Hughes Industrial Park — Staff have been contacted by businesses that would like to expand for outside storage. The businesses would have to go through the Interim Use and Commercial Site Plan process. ABC Mini-Storage/T-Squared (self -storage), 13624 Hanson Boulevard — The buildings will have brick over the steel and stucco. Staff have met with the project manager related to site improvements and continue to work with them to see progress on the buildings and site. Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate to in Andover. TCF Site — At this time the city has approved two conditional use permit applications related to having a drive through at this location. The two restaurants would be Chipotle and Noodles and Company. The applicant is working with the Coon Creek Watershed District on infiltration at the site. Aurora Vista, 7" Avenue and Bunker Lake Boulevard — Room finishes are taking place within the second phase. Room finishes are near completion on phase one. Elevators have been installed. Landscaping and sod is near completion. They would like approval to allow people to move in October I". Holasek Property (near City Hall) — Andover City Council approved a Comprehensive Plan Amendment, City Zoning Code Amendment and rezoning of the parcel on August 4, 2022. This item was approved by the City Council on December 20, 2022. The applicants are reviewing market conditions and financial partners. Mr. Dickinson presented a handout from SilverCrest Senior Communities. He indicated they continue to work on the project and have requested the EDA consider a 9,000 square feet commercial component integrated into the building versus a separate 10,000 square feet commercial component. The proposal contains a wellness center for seniors, a bistro and salon which would service the facility and also the public. The consensus of the EDA is that they are not in favor of declaring the 9,000 square feet as commercial. Zoning of the property requires 10,000 square feet of commercial. Mr. Dickinson stated the property is not eligible for tax increment financing, but assessment agreements or abatement are available. Housing — Currently 45 permits have been issued for single-family homes/townhomes. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Andover Economic Development Authority Meeting Minutes — September 19, 2023 Page 3 Fields of Winslow Cove — City Council has approved the Final Plat for Fields of Winslow Cove 2"d Addition with 36 lots on the west side of Prairie Road. The roundabout is under construction and is expected to be completed in late October. Legacy at Petersen Farms — City Council will consider the Conditional Use Permit (CUP) amendment for a Planned Unit Development amendment to allow for Phase 3 (33 lots). City staff continues to work with the applicant on the primary plat. The pre -construction meeting is scheduled. Legacy Christian Academy — Tip up panels are complete, working on setting spancrete and bar joists. Anoka County 911 and Radio Building - Concrete is being placed on the interior. Framing crews have started framing the upper exterior walls so the roof can start soon. Grace Lutheran Church, 13655 Round Lake Boulevard — Staff continues to work with the applicant on the Commercial Site Plan. They received an extension for their subordinate classrooms. Constance Free Church, 16150 Crosstown Boulevard — Building permits have been issued, siding and EFIS work is taking place. White Rabbit Kitchen, 15190 Bluebird Street— They have started to call for final inspections, the project should be complete in a week. Overall Marketing — City staff continues to work with parties interested in investing in Andover and marketing all commercial sites. Staff continues to work with Anoka County Regional Economic Development (ACRED) on marketing of the community and Anoka County. REDEVELOPMENT UPDATES Mr. Dickinson stated staff are still pursuing property in the area but at this time property owners are not interested in selling. Mr. Janish indicated a tenant has fallen behind in paying rent and has been asked to leave. The tenant will have 60 days to vacate the property. After the 60 days if they do not leave the eviction process will begin. EDA SPECL9L REVENUE FUND/TAX INCREMENT PROJECTS CAPITAL PROJECT FUND Mr. Dickinson reviewed the EDA Fund balance report. He highlighted the home improvement program, indicating $50,000 was allocated for the program in 2023. An additional $30,000 has been allocated for the program in 2024. Any funds remaining from 2023 will be rolled over to the program in 2024 adding to the $30,000. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Andover Economic Development Authority Meeting Minutes — September 19, 2023 Page 4 Commissioner Butler asked what the long-term plan is for the home improvement program. Mr. Dickinson replied the program could qualify for funds from the State Funding Program generated from the new sales tax. That could be the potential for the City to continue the program. The consensus of the EDA is in favor of continuing the program, but to continue to look for other funding options. Mr. Dickinson reviewed the Budget Detail indicating most of the costs are maintenance responsibilities the EDA has. Mr. Dickinson reviewed the Tax Increment Fund. OTHER BUSINESS There was none. ADJOURNMENT Motion by Barthel, Seconded by Nelson to adjourn. Motion carried unanimously. The meeting was adjourned at 6:45 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Review EDA Tax Increment Projects Fund DATE: November 21, 2023 INTRODUCTION The EDA is requested to receive a brief presentation on the EDA Tax Increment Projects Fund. DISCUSSION The Executive Director will use the attached documents as the basis for the presentation and to facilitate discussion: 1. October 2023 TIF District Status 2. October 2023 TIF Rental Properties ACTION REQUESTED a presentation, discuss, and provide direction to staff. submitted, �r Jim October 2023 Year Potential Land Sales CITY OF ANDOVER Fund Balance Analysis - TIF Project Accounts Districts 1-1 & 1-2 TIF Potential Projects Expenses 4-plex 2-plex 12/31/2022 2023 - (65,000) 2024 150,000 (100,000) (450,000) 2025 400,000 (119,516) 550,000 (284,516) (450,000) Budgeted at: $450k each TIF Project Account Interest Fund Balance $ 875,035 9,481 819,516 (350,000) - 69,516 (350,000) (0) (700,000) 9,481 $350k each ** $25,000 has been designated for landscaping improvements in the Building Fund for Andover Station Outlot E. Year Property Owned by Andover EDA Purchased 2600 138th Ave NW (quad) vacant lot 2011 2543 Bunker Lake Blvd NW (quad) vacant lot 2017 2557 Bunker Lake Blvd NW (quad) vacant lot 2017 2526 138th Ave NW (quad) vacant lot 2017 2542 138th Ave NW (quad) rental 2018 2527 Bunker Lake Blvd NW (quad) rental 2020 2556 138th Ave NW (quad) rental 2020 2513 Bunker Lake Blvd (twin) rental 2020 2621 Bunker Lake Blvd (quad) vacant lot 2020 2607 Bunker Lake Blvd (quad) rental 2020 29-32-24-42-0006 Round Lake Blvd vacant lot 2021 2503 138th Ave NW (twin) rental 2022 October 2023 fund 4515 Redevelopment District 1-5 Arbor Oaks 15 yr Pay -As -You -Go Note: $540,000 TIF Contract Tax TIF Potential TIF Potential Increment Project Account Year Land Sales Expenses Projects Revenue Xfer In /(Out) Fund Balance 12/31/2022 $ 2023 - (6,989) (62,904) 69,893 2024 - (6,989) (62,904) 69,893 2025 - (6,989) (62,904) 69,893 2026 - (6,989) (62,904) 69,893 - 2027 - (6,989) (62,904) 69,893 - 2028 - (6,989) (62,904) 69,893 - - 2028 final year of Pay -As -You -Go Note 2029 - (6,989) - 69,893 - 62,904 2030 - (6,989) - 69,893 - 125,808 2031 - (6,989) - 69,893 - 188,712 2032 - (6,989) - 69,893 - 251,616 2033 - (6,989) - 69,893 - 314,520 2034 - (6,989) - 69,893 - 377,424 2035 - (6,989) - 69,893 - 440,328 2036 - (6,989) - 69,893 - 503,232 2037 - (6,989) - 69,893 - 566,136 2038 - (6,989) - 69,893 - 629,040 2039 - (6,989) - 69,893 - 691,944 2039 final year fund 4516 Economic Development District 1-6 TE Connectivity Tax TIF Potential TIF Potential Increment Project Account Year Land Sales Expenses Projects Revenue Interest Fund Balance 12/31/2022 $ (43,109) 2023 30,582 (12,527) 2024 30,582 18,055 2024 final year CITY OF ANDOVER TIF Rental Properties Purchased 2600 138th Ave NW (quad) 2017 2018 2019 2020 2021 2022 Oct2023 Revenues 2526 138th Ave NW (quad) vacant lot 2017 2542138th Ave NW(quad) rental 2018 2527 Bunker Lake Blvd NW (quad) Rent $ 3,677.75 $80,711.25 $88,903.00 $100,147.00 $204,476.00 $155,629.25 $ 92,087.75 Interest 10.04 720.50 2,467.00 2,532.00 27.00 (3,903.00) 1,342.00 Total Revenue 3,687.79 81,431.75 91,370.00 102,679.00 204,503.00 151,726.25 93,429.75 Expenditures Salaries & Benefits - - - - - - - Departmental 8.96 51.23 1,976.37 324.00 1,275.00 - 1,484.85 Operating 608.64 24,157.09 31,691.00 39,978.00 81,062.00 80,629.59 61,401.87 Professional Services 418.00 20,068.85 16,813.00 44,161.00 84,747.00 68,893.99 42,846.83 Equipment - - - - Total Expenditures 1,035.60 44,277.17 50,480.37 84,463.00 167,084.00 149,523.58 105,733.55 Net increase (decrease) in fund balance 2,652.19 37,154.58 40,889.63 18,216.00 37,419.00 2,202.67 (12,303.80) Fund Balance - January 1 - 2,652.19 39,806.77 80,696.40 98,912.40 136,331.40 138,534.07 Fund Balance -December 31 $ 2,652.19 $39,806.77 $80,696.40 $ 98,912.40 $136,331.40 $138,534.07 $126,230.27 Purchased 2600 138th Ave NW (quad) vacant lot 2011 2543 Bunker Lake Blvd NW (quad) vacant lot 2017 2557 Bunker Lake Blvd NW (quad) vacant lot 2017 2526 138th Ave NW (quad) vacant lot 2017 2542138th Ave NW(quad) rental 2018 2527 Bunker Lake Blvd NW (quad) rental 2020 2556 138th Ave NW (quad) rental 2020 2513 Bunker Lake Blvd (twin) rental 2020 2621 Bunker Lake Blvd (quad) vacant lot 2020 2607 Bunker Lake Blvd (quad) rental 2020 29-32-24-42-0006 Round Lake Blvd vacant lot 2021 2503 138th Ave NW (twin) rental 2022 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and EDA Commission Members FROM: Jim Dickinson, Executive Director SUBJECT: Approve LMCIT Liability Coverage - EDA DATE: November 21, 2023 q 6 INTRODUCTION The League of Minnesota Cities Insurance Trust (LMCIT) requests that participating EDA's annually decide whether or not to waive the statutory tort liability limits established by Minnesota Statutes 466.04. DISCUSSION Attached is the "LMCIT Liability Coverage — Waiver Form" provided by the LMCIT, which provides a description of the options available to the City of Andover EDA. Currently the City of Andover EDA DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. I am recommending continuing with the past practice. BUDGETIMPACT No budget impact if the EDA does not waive limits. ACTION REQUESTED The City of Andover EDA is requested to not waive the monetary limits on tort liability established by Minnesota Statutes 466.04. tted, LEAGUE of MINNESOTA CITIES LIABILITY COVERAGE WAIVER FORM Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) must complete and return this form to LMCIT before their effective date of coverage. Email completed form to your city's underwriter, to pstech(d,)lmc.or¢, or fax to 651.281.1298. Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to the extent of the coverage purchased. The decision to waive or not waive the statutory tort limits must be made annually by the member's governing body, in consultation with its attorney if necessary. The decision has the following effects: • If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether the member purchases the optional LMCIT excess liability coverage. • If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived to the extent of the member's liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of claimants. • If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. LMCIT Member Name:Andover Economic Development Authori Check one: ❑ The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. 466.04. ❑ The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. 6 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of member's governing body Signature: Position: League of Minnesota Cities 3/2/2023 Liability Coverage Waiver Forrn Page 1 ANL6 Y VEO FOR 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners CC: Jim Dickinson, Executive Directo FROM: Joe Janish, Community Development ' ctor 5°f SUBJECT: Andover Home Improvement Grant Program Updates DATE: November 21, 2023 INTRODUCTION The Andover Home Improvement Program is considered "active". The information was sent by newsletter and was available on the City of Andover's website. A facebook post was also conducted on the City of Andover Facebook page. As of November 15, 2023 the City of Andover has received 30 applications, and spoke with 5 others that did not qualify based on home values. Based on program criteria, 8 homes have qualified. The following items are the most requested improvements: - 13 Requests for siding. - 12 Requests for Driveways or sidewalks. - 10 Requests for Front Door, Storm Door, Garage Door - 10 Requests for Fascia Two homes have completed the program, and photos are attached. Others are running into supply or contractor issues based on supplies and availability. Alter Chimney Sidelight Rooflineot W d. Repian.Tuck Front DoorStcr. WIMowM Columnsat &itk.Stram. Front or Permanent Driveewyor Mke. Rreeningot Point. Retaining Door. Wrage Door font Door Front Door mrStlaYes House Landscaping Sidewalk Shutters milityDoes Roof Siding Dainting S�fit F.,. Gutters Windows Repointing Dark potth Wall 1 1 1 10 2 1 5 1 s 12 0 0 2 13 3 9 10 9 9 0 1 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10 2 1 5 1 s 12 0 0 2 13 3 9 10 9 9 0 1 0 0 .. �.i i r`'•�'Jy.:� v x'11;' �. i," /� � ti. !; s W r `� •,', `' r• ,,. g "- , . . ,:n "•:., i ,�.- R �l - - •� _'1 -- �- j �, � r - .• � +•r� r-,.. �; �' , r :N __ - ,. , y�"- ". ,� y,,��� :�, - c;. <:�� .. BEFORE: AFTER: 6. ' :cI 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: CC: FROM: SUBJECT: DATE: President and Commissioners Jim Dickinson, Executive Joe Janish, Community Review Commercial Project Activity November 21, 2023 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCIAL PROJECTS • Clock Tower Commons —The final building pad location interest is relatively low at this point. Staff has met with the owner/developer who is working on plans to build on the final pad. Costs came back higher then expected as they looked at construction costs and are currently re-evaluating the building. The developer is aware and plans to have a clock on the building. Interest in Hughes Industrial Park — A 10 acre property east of the park had been on the market and City Council reviewed with the landowner desired roadway connections through the parcel at a past work session. The owners of Best Outdoor Services, which owns a lot nearby, have purchased the property. Eventually, they would like to expand to this location. They are aware that the property is currently zoned residential and would have to follow a process for any type of expansion. They are looking at ways to allow for outside storage, continue to rent out the home and not have to build the roadway. Their current plans are to continue to rent out the home. ABC Mini-Storage/T-Squared (self -storage) — City Council approved a CUP for additional Mini -storage on a portion of this lot. The buildings will have brick over the steel and stucco. Staff has met with the project manager related to site improvements and continue to work with them to see progress on the buildings and site. They will be looking for a certificate of occupancy this week and will provide an escrow for outstanding site improvements. Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate in Andover. TCF Site —At this time the city has approved two conditional use permit applications related to having a drive through at this location. These two restaurants would be Chipotle and Noodles and Company. City Council has approved the CUPS. The applicant is working with Coon Creek Watershed District on infiltration at the site. The applicant has been notified that the CUP may expire in early 2024 with lack of progress. • Aurora Vista (Andover Crossings) — Is nearly complete. • Holasek Property (near City Hall) —Andover City Council will review a Comprehensive Plan Amendment, City Zoning Code Amendment and rezoning of the parcel on November 21, 2023. Planning and Zoning Commission held a Public Hearing on November 14, 2023 and provided a recommendation of approval. Housing — Developers are looking for additional land for future developments. Several developers are trying to keep an inventory of lots, but are having difficulty in finding locations. In 2021 we had 140 new housing starts. In 2022 we had 100 permits issued for new housing, 1 apartment (150 units), and an assisted living facility (32 units). Currently, 58 permits have been issued for single-family homes/ townhomes. Fields of Winslow Cove — City Council has approved the Final Plat for Fields of Winslow Cove 2"d addition with 36 lots on the West side of Prairie Road. The roundabout is open. The developer has provided a Final Plat for Fields of Winslow Cover 3'd Addition application with another 109 lots. Legacy at Petersen Farms — This phase is under construction. City Council will consider an IUP for a stockpiles outside of the plat boundaries on November 21, 2023. City Counicl will also consider a Final plat on the same date. Staff is currently reviewing a Legacy at Petersen Farms 2"a Addition, which would eliminate the permanent cul de sac, temporary cul de sac and two emergency accesses by creating a "loop" roadway. • Legacy Christian Academy —Interior framing is taking place, with HVAC, and plumbing doing rough in's. • Anoka County 911 and Radio Building —City Council approved a request for a fuel tank to be on the property on August 16, 2022. The first asphalt lift has been placed for the parking lot. Interior framing is near completion, with framing inspections taking place this week. • Grace Lutheran Church —A Conditional Use Permit was granted. Staff continues to work with the applicant on the Commercial Site Plan. They received an extension for their subordinate classrooms. Building Plan review is occurring at this time. • Constance Free Church — Is remodeling part of their facility, including revamping the entrance to the building and screening some mechanical equipment they installed. City Council amended the City Code to allow for taller fences in certain situations. Staff has stamped the commercial site plan. Building permits have been issued and siding and EFIS work is taking place. L&W Supply — Has attempted to submit Commercial Site Plan and Two variance requests but all items have been found as incomplete. The intention is to create a three sided accessory structure for additional storage of building materials. • White Rabbit - Moving into the former META location. The business is open. Overall marketing - City Staff continue to work with parties interested in investing in Andover and marketing all commercial sites. Staff continues to work with the Anoka County Regional Economic Development (ACRED) on marketing of the community and Anoka County.