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HomeMy WebLinkAboutEDA January 17, 2006 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING January 17, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (12/20/05 Regular Mtg.) 3. Amend Andover Station North Design Guidelines 4. Update of Andover Station Development / 5. Other Business 6. Adjourn \ / @ '\ , 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 Volk, City Clerk SUBJECT: Approval of Minutes DATE: January 17,2006 INTRODUCTION The following minutes were provided by TimeSaver Secretarial for approval by the EDA: ", December 20, 2005 Regular Meeting (Trude absent) DISCUSSION Attached are copies of the minutes for your review. ACTION REOUIRED The EDA is requested to approve the above minutes. Respectfully submitted, f1.L. t/,/L, Vicki V olk City Clerk , '\ , / DRAFT ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 20,2005 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, December 20,2005, 6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel; Voting resident members Joyce Twistol and Robert Nowak Commissioner Julie Trude, Advisor to the EDA Edward Schultz Executive Director, Jim Dickinson Community Development Director, Will Neumeister Others Absent: Also present: \ APPROVAL OF MINUTES December 6, 2005: Correct as written. MOTION by Jacobson, Seconded by Knight, approval of the minutes as written. Motion carried unanimously. REVIEW BUNKER LAKE BOULEVARD REDEVELOPMENT OPTIONS Mr. Neumeister stated this was last discussed with the EDA on June 25, 2002. At that time, the focus was on redeveloping the area between Crosstown Drive and Crosstown Boulevard. Mr. Neumeister reviewed the staff report for the Crosstown Boulevard area with the Commission regarding redevelopment options. Mr. Dickinson reviewed how he came up with the numbers for option two. Mr. Dickinson indicated it would take $10.6 million dollars to clean the area out. They would probably be able to sell the land for $3 million and then the project would yield $3.6 million in tax increment over the next twenty-five years. He stated with option three, there would be office condos and townhomes and they would probably be able to sell the land for a little bit more but the tax increment would go down so there would still be close to a $4 million funding gap. '\ Commissioner Jacobson asked in the cost estimate, would they get ninety percent in sales and ten percent condemnation sales. Mr. Dickinson did not think they would get that much condemnation percentage if they would be buying the property at market rate. \ I Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 2 Mr. Dickinson did not think this would be a feasible project. Mr. Nowak wondered what he meant by the gap could be filled by funds from the Andover Station TIP District. How do they fill in the gap and do they have an excess. Mr. Dickinson stated if they do nothing else in the TIF District and all the land sales come through, and they do not take on any other projects, they could take in about $3.5 to $3.6 million dollars. Mr. Dickinson stated they could do a cost share with developers. Commissioner Knight wondered how they would justify that kind of expenditure for private property without loans. Mr. Dickinson stated this is a redevelopment area and they are improving it so it is in the best interest of the residents and would not require a loan. Commissioner Jacobson wondered if it made more sense to watch the area closely and make sure all the ordinances are carried out to keep the property up to certain standards in order to live in the area. Commissioner Orttel stated that is not the problem, the buildings are all legal but do not look nice. / Commissioner Orttel stated if they improve the looks of the buildings, they could get more rent. This has always been a low rental area in the City. He thought the way to do it is to split what can be split and sell them off because owners will take care of their property, unlike renters. Commissioner Orttel stated they are doing something like that in Anoka. President Gamache wondered if the City was helping to clean up the buildings. Commissioner Knight stated they are doing this on Grand Avenue in St. Paul where they are taking buildings and making them into condos and the City is not helping them. Commissioner Orttel thought the unsightly buildings on Bunker Lake Boulevard should be removed. Mr. Nowak did not think anyone really likes the looks of these buildings. Commissioner Orttel stated they cannot walk away from this but he could not see using public money to fund this. He thought a loan or CDBG funds could be used. Mr. Neumeister reviewed the Kottke's Bus area with the Commission. Commissioner Orttel stated other cities have auto malls and Andover does not have anything like that. He wondered if this was something they could look at getting to come into Andover. Mr. Neumeister thought this would be a private sector deal and he did not think the City would want to subsidize this. Commissioner Jacobson stated if this is zoned industrial, they might want to rezone it to " Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 3 commercial so something undesirable does not come in. He wondered what is allowed in industrial that is not allowed in commercial. Mr. Neumeister indicated there is not much difference. Commissioner Orttel wondered if they have determined what Kottke's needs for acreage. Mr. Neumeister indicated Kottke's said they would need about twenty acres and they have eighteen acres right now. Kottke's is in a central location and does not want to leave unless a really good deal is given from the City. Mr. Neumeister thought this could be a nice area for a Molly Building. Commissioner Orttel thought this would be prime retail space in the future. Commissioner Jacobson wondered if the City should come to Kottke's and ask them to sign a right of first refusal so the City is in the loop. Mr. Dickinson stated they could look at that. Mr. Neumeister stated they need to get access to either Hanson Boulevard or Bunker Lake Boulevard in order to make something work on that land if redeveloped. President Gamache stated once Hanson is widened, they will know how the Spur station is working out. Mr. Nowak stated if there was an access put in now at Hanson to connect to Grouse, development may not happen the way the City wants it to happen. He thought they should just leave it the way it is. Ms. Twistolliked the idea of looking at the zoning on the property. Mr. Neumeister wondered if they wanted to investigate putting an overlay on this that sets the same designs they used at Andover Station so as the area starts to turn over, they have to meet some higher standards other than Commercial or Industrial Zoning Districts. He stated right now those standards are fairly low where Andover Station standards are higher. He wondered if they should consider looking at that too. President Gamache thought that was a good idea also. President Gamache wondered how that would affect the buildings further back. Mr. Neumeister stated it would affect them only if they were to remodel and then they would have to bring them up to City standards. Mr. Dickinson stated they could look at other areas for redevelopment in the City if the Commission wanted that. Commissioner Orttel stated he did not want to walk away from the Bunker/Crosstown redevelopment. He thought there had to be a way to upgrade the area. Mr. Dickinson indicated they do not have City water. ) Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 4 Ms. Twistol wondered what it would take to hook these sites up to water. Mr. Dickinson stated they would have to have bad water because they cannot force them to hook up. There was discussion among the Commissioners regarding bringing the buildings up to code and improving the area Ms. Twistol wondered if it would do any good to do an overlay on this area as well. Mr. Neumeister did not think that would work in this area. He thought it could be somewhat detrimental. Mr. Neumeister stated they could change the land use on this area, making it multi-use. Commissioner Orttel stated they still need to have the City indicate the entire area will flip or else no one will be the first one to redevelop it. Mr. Neumeister stated unless the City is willing to give a grant, the property owners will not want to improve the area Ms. Twistol wondered if they have a beautification program along Bunker. She thought this may be something they want to look at. Commissioner Knight stated there is more to this than landscaping. He stated there is not any deviation to the buildings and they are starting look old and worn. He thought the buildings themselves need to be upgraded. OTHER BUSINESS Mr. Neumeister updated the Commission on Andover Station North. He stated they received a letter from the MPCA regarding fIle closure. They are still waiting for a letter from VPIC. He indicated this will give Mr. Casey and Mr. Rudnicki a chance to get going on their projects. Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 6:57 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary @ CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US CC: EDA President and Board 'D Jim Dickinson, Executive Directo~ Will Neumeister, Director of Community Development tV~ SUBJECT: Amend Andover Station North Design Guidelines -- Planning TO: FROM: DATE: January 17,2006 INTRODUCTION The discussions with Louis Rudnicki have progressed to the point that the code change for dry cleaning processing is being brought forward to the City Council and the change to the design standards/guidelines for Andover Station North should also be made. DISCUSSION Attached is a section of the design guidelines that shows the uses that are allowed in Andover Station North. Previously the EDA had heard testimony from Laura Heppner and Louis Rudnicki where they indicated that they will be using new machines in their dry cleaning processing and that the technology has become much better. They indicated that there will not be any issue with the smells associated with the dry cleaning operation that they are proposing to occupy one of the spaces in the proposed shopping center. Last week, the Planning Commission reviewed the information and concurred with staff and recommended that the dry cleaning processing use should be a conditional use in the commercial zoning districts. ACTION REOUESTED The EDA is asked to review the proposed change to the Andover Station North design guidelines to allow laundry and dry cleaning processing on the properties in Andover Station North. Respectfully submitted, Will Neumeisterd-- Attachment Uses Page from Andover Station North Design Standards \ .' 1.06 "Property" shall mean all of the real Property submitted to the provisions of these Design Standards, including all improvements located on the real Property now or in the future. The Property as of the date of the adoption of the Design Standards is legally described on Exhibit A. 1.07 "Permitted Uses" shall mean the permitted uses of the Property be limited to community commercial, office, entertainment, builder's showcase, office warehouse and residential as defined below. The uses shall be limited to those as defmed herein. If there is a question as to whether or not a use meets the definition, the Economic Development Authority shall make that interpretation. 1.08 "Community Commercial" shall mean the establishments engaged in commercial operations including retail trade and services and hospitality industries. These uses shall include the following: " . Apparel and Clothing . Book Store . Food and Grocery Stores . Leather Goods . Photography Studio . Sporting Goods . Antiques . Bakeries . Carpets & Rugs . China & Glassware . Department Stores . Furniture . Hobby Shops . Interior Decorating . Locksmith Shop . Office Supply & Equipment . Pharmaceutical . Tailoring . Toys . Video Store Rental & Sales . Lighting Studios . Barber and Beauty Shop . Florist . Jewelry Store . Music Store . Optometrist . Car Wash . Bicycles . Candy . Catering Establishments . Clothing & Costume Rental . Electrical Sales & Repair . Gifts . Household Appliances . Laundry/Dry Cleaning Processing "* and Pickup . Luggage . Paint & Wallpaper Sales . Restaurants . Tobacco . Variety Stores . Liquor Store Sales - Off-Sale 1.09 "Builders Showcase" shall mean uses related to the home building industry, these shall include: . Home and Office Electronics \ ) . Drywall Companies Andover Station North Design Standards March 15,2005 -2- @ \ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US CC: EDA President and Board ~ Jim Dickinson, Executive Director \.:j Will Neumeister, Director of Community Development !K~ SUBJECT: Update of Andover Station Development TO: FROM: DATE: January 17,2006 INTRODUCTION The City Attorney and the Attorney for Brad Povlitzki have agreed to change the closing date on the land exchange to May 15,2006 to enable the lot split to be recorded when the fIrst half year taxes are due. This will not have any effect on the land sale to Bruggeman/Pulte Homes. The BruggemanlPulte Homes staff have been working with the City Planning Staff to put a new plat together showing the additional townhome units that will result from the land exchange. Attached is the detailed drawing showing the layout of the units. This also includes the land adjacent to the pond and will result in the EDA receiving approximately $200,000 of additional land sales above the original purchase price. The development has previously been reviewed by the EDA and no further action is needed by the EDA to allow this amended Preliminary Plat to move forward. DISCUSSION The staff has been working with Louis Rudnicki on details for his land sale and are very close to having signed purchase agreements and the earnest money in hand. The latest site plan he has been working on is attached to allow the EDA to see what his site plans are. Staff is processing a lot split to enable the land to be closed by April 1, 2006. We are also expecting the fmal "File Closure" letter from MnPCA by January 15th. If it becomes available it will be sent to Mike Casey and also Mr. Rudnicki, both need it for their lenders to allow the closings to happen this spring. Staff have been working with Tony Howard to prepare the purchase agreements and expect that he will also close on April 1 st. Staff has had contact with "Play Ventures" and they are still interested in pursuing the land for their restaurant and sports venue at the NW comer of Hanson and 139th Avenue. They indicated that they remain interested but they need to meet among the parties that will comprise the owners and get their approvals before they can move ahead with any counter offers. Staff has been working with a local developer on a redevelopment concept plan for the area along Bunker that was discussed at an EDA meeting a few weeks ago. This will be explained in further detail at the EDA meeting. ACTION REOUESTED None is needed, as this is an informational update on recent construction, and marketing/promotional efforts. 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