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HomeMy WebLinkAboutEDA - August 20, 2024C I T Y O F Nb6 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING August 20, 2024, 6:00 p.m. Conference Room A and B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (May 21, 2024, Regular) 3. Discuss/Approve Purchase Agreement 4. Discuss Local Affordable Housing Aid 5. Redevelopment Updates (Verbal) 6. Commercial Updates 7. Other Business a. CDBG — Connection Fees (verbal) b. After the Fact Andover Home Improvement Grant c. Discuss Possible City Code Amendment for Automated Car Wash 8. Adjournment 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER. MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: CC: FROM: SUBJECT: DATE: Economic Developn Jim Dickinson, City Michelle Hartner, Ci Approval of Minutes August 20, 2024 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: May 21, 2024 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Hartner 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— MAY21,2024 -MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Sheri Bukkila, May 21, 2024, 6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Commissioners Absent: Also present: APPROVAL OF April 16, 2024, Motion by Kafer, Jamie Barthel, Ted and Kari Kafer Rick Greg Mueller EDA Executive Director Community Developme (arrived at 6:03 p.m.), Lt Director, Joe Janish minutes as written. Motion carried Mr. Dickinson indicated the property at 2641 Bunker Lake Boulevard, which is located in the targeted redevelopment area has been negotiated within the parameters set by the EDA and a Purchase Agreement; is before the EDA for possible approval. Mr. Dickinson stated the sellers have signed the Purchase Agreement. Motion by Barthel, Seconded by Butler, approving the Purchase Agreement for 2461 Bunker Lake Boulevard. Motion carried unanimously. Commissioner Kafer left the meeting at 6:05 p.m. 2975161ST AVENUE NW CONCEPT DISCUSSION Mr. Janish stated there are representatives from Best Outdoors present for the discussion. He indicated in the staff report the concept is contractor condos for 2975 161" Avenue is broken down into phases. Mr. Janish reviewed the phases. Andover Economic Development Authority Meeting Minutes — May 21, 2024 Page 2 Brandon Rossmeisl, Best Outdoors stated the buildings would be condos to rent for businesses. For example, a small contractor that needs a place to store their construction equipment. 4 Mr. Janish asked if the EDA has interest in this type of project in the City, if so then staff would continue to work with the applicants. Commissioner Barthel asked if each unit would have office space. Mr. Rossmeisl replied each unit would have the ability to have a bathroom and an office. 10 President Bukkila asked where this concept falls within the City Code. Mr. Janish replied each 11 building would have a fire suppression system and private septic. There could be some level of 12 code amendments with this project. 13 14 President Bukkila indicated she has reservations on the units being sold versus rental units. She 15 is also concerned about crime issues. 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 Mr. Rossmeisl stated as the owner ideally, he would prefer to keep the units as rentals however by selling units it would keep funding the development. Commissioner Butler asked the size of each unit. Mr. Janish answered 24x50, eight units per building. Commissioner Butler shared he has the same concerns as President Bukkila regarding uses in the units and also the units turning into a mini -storage. Mr. Rossmeisl stated he does not want it to become a mini storage as well. Commissioner Nelson asked what the property is zoned. Mr. Janish answered the Comprehensive Plan shows it as industrial, however any use of the property would require an Interim Use Permit (IUP). Commissioner Barther indicated he is open to the concept and would like the road to connect to the cul-de-sac. President Bukkila recapped the EDA is interested in the concept but has concerns in use and what will be put into place to control the use of the units. Mr. Janish asked if the EDA is interested in phases of the concept. President Bukkila and Commissioner Barthel are not interested in phases. President Bukkila suggested to start building from the street side back. Commissioners Barthel and Butler agreed. REDEVELOPMENT UPDATES Mr. Dickinson asked if the EDA is interested in planning for a redevelopment of Downtown Center 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 — May 21, 2024 Page 3 as a mixed-use concept. The EDA is not interested in the concept. COMMERCIAL PROJECT ACTIVITY Mr. Janish updated on the following: Clocktower Commons, 15190 Bluebird Street— City Council approved PUD amendment to allow for two buildings with drive up windows. Staff continues to work through the commercial site plan process with the applicant. They have seen the 2"d review comments from the City, staff is expecting a revision to be submitted. TE Connectivity Building, 1711139' Lane — PEM (Power Engineering & Manufacturing, Inc.) has purchased the TE Connectivity building. PEM designs and produces electric actuators and controls. In July the company is relocating from Blaine. Interest in Hughes Industrial Park — Staff continues to have occasional discussions with business owners in the area on expansion. However, they tend to not carry through on the expansion due to costs associated with sprinklers, septic systems, etc. ABC Mini-Storage/T-Squared (self -storage), 13624 Hanson Boulevard — They have received their certificate of occupancy, and the City has a $51,000 escrow to complete improvements on the property. Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate to in Andover. TCF Site — The parcel is back on the market. Aurora Vista, 71h Avenue and Bunker Lake Boulevard —The property is 60% leased. Andover Crossings, 71h Avenue and Bunker Lake Boulevard — Staff has met with a convenience store looking at a 2 -acre parcel. Their desire is to have a convenience store with fuel and also a carwash. The convenience store and fuel will require a CUP and the carwash is not currently allowed within the zoning district. It sounds as though they plan to request a code amendment to allow for the carwash if the City Council agrees. Staff also met with the developer, and he is interested in constructing a building with a drive thru at the "toe" of the development. If both projects move forward the development would be built out. Holasek Property (near City Hall) — The preliminary plat and PUD were approved by City Council. The applicants are continuing to work through the preliminary plat and commercial site plan process. Housing — 46 new home permits have been issued. Fields of Winslow Cove — City Council has approved the final plat for Fields of Winslow Cove 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 Andover Economic Development Authority Meeting Minutes — May 21, 2024 Page 4 2"d Addition with 36 lots on the west side of Prairie Road. City Council has also approved a final plat for Fields of Winslow Cove Yd Addition application with another 109 lots. The utility plans have been submitted for review. Legacy at Petersen Farms — The final plat was recently released for recording purposes. Legacy at Petersen Farms 2nd Addition was approved by City Council. Staff is currently reviewing information related to the final plat. Vacation of easements within the Final Plat will occur. Legacy Christian Academy — Plan review is taking place for an interior remodel of the existing building. Anoka County 911 and Radio Building - Interior finishes are taking place. Grace Lutheran Church, 13655 Round Lake Boulevard — They started work on the new parking lot on the west addition. They have started sheet rocking this week on the east addition. Andover Christian Church, 16045 Nightingale Street— Permit has been issued for the fire damage that had taken place. Kwik Trip, 1756 Bunker Lake Boulevard — Cooler/freezer have been placed, working on framing the roof structure over the cooler/freezer. 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. OTHER BUSINESS Mr. Dickinson gave an update on the Silvercrest development. Mr. Dickinson asked if the EDA is interested in recommending reducing park dedication fees and/or in a tax abatement deal to assist the project. The EDA replied no to each request. ADJOURNMENT Motion by Barthel, Seconded by Butler to adjourn. Motion carried unanimously. The meeting was adjourned at 6:46 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary AKb6'Y^_ 0 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 Direct SUBJECT: Approve Purchase Agreement for 13 and 13724 Xavis Street NW (one twin property) DATE: August 20, 2024 REQUESTED ACTION The EDA is requested to receive a presentation and consider acquisition of a property in the Bunker Lake Boulevard Redevelopment Area, 13718 and 13724 Xavis Street NW (one twin property). The Executive Director was in active negotiations with various properties in the Bunker Lake Boulevard Redevelopment Area. Based on progress to date on negotiations the Executive Director would like to seek authorization to acquire a specific property, 13718 and 13724 Xavis Street NW, to which an offer with contingencies was extended. Attached is the purchase agreement prepared and reviewed by the City Attorney that is consistent with the offer extended and is within general parameters previously set by the EDA. If details of other negotiations are desired at the meeting, the EDA should go into a closed session to discuss the Bunker Redevelopment Area Property Negotiations. Attachments -Purchase Agreement — 13718 and 13724 Xavis Street NW PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement (this "Agreement") is made by and between Steven and Diane Bialick, husband and wife (collectively referred to herein as "Seller"), having an address for notices of 3201 Hazelwood W., Wayzata, MN 55391 and the City of Andover Economic Development Authority ("Buyer"), a Minnesota municipal corporation having an address for notices of 1685 Crosstown Boulevard, N.W., Andover, MN 55304, and is effective as of the date last signed by a party to this Agreement ("Effective Date"). 2. OFFER/ACCEPTANCE. Subject to the terms and conditions of this Agreement, Buyer agrees to purchase and Seller agrees to sell real property located in the City of Andover, County of Anoka, State of Minnesota, commonly known as 13718 and 13724 Xavis Street, and legally described on the attached Exhibit A (the "Property"). 3 PRICE AND TERMS. The purchase price for the Property (the "Purchase Price") shall be Three Hundred Twenty Thousand and 00/100 Dollars ($320,000.00), which Buyer shall pay in cash or other immediately available funds on the "Closing Date" (defined below). 4. CONTINGENCIES TO BUYER'S OBLIGATION TO PURCHASE THE PROPERTY. Not later than ten (10) days after this Agreement has been executed and delivered by both Seller and Buyer, Seller shall make available to Buyer and its attorneys and agents, all reports, studies, tests, surveys, current tenant leases and other documents relating to the Property that are in Seller's possession or control. Buyer's obligation to purchase the Property is contingent upon satisfaction, or waiver by Buyer, of each of the following conditions. If Buyer so notifies Seller that any such contingency to Buyer's obligation to purchase the Property has not been satisfied, this Agreement shall be voidable at the option of Buyer and neither Seller nor Buyer shall have any further rights or obligations under this Agreement except for obligations (the "Surviving Obligations") which expressly survive the termination of this Agreement or the Closing Date. (a) Seller shall provide a marketable title to the Buyer, lien, judgment and mortgage free, and in the condition described by Sections 11 and 12 below. (b) Buyer shall be completely satisfied, in Buyer's sole discretion, with the environmental and soil conditions of the Property. Seller hereby authorizes Buyer, at Buyer's sole risk, to enter the Property during the period (the "Inspection Period") commencing on the Effective Date of this Agreement and ending at a date thirty (30) days subsequent to the Effective Date, to conduct investigations and testing of the Property. Buyer shall indemnify and hold Seller harmless from all loss, cost, damage and expense (including court costs and reasonable attorney's fees) that Seller may suffer or incur as a result of Buyer's entry onto and investigation and testing of the Property, and Buyer's obligation under this sentence shall be a Surviving Obligation. (c) Seller shall allow Buyer a right of entry to fully inspect the Property, and Buyer's obligation to purchase the Property shall be contingent upon Buyer's satisfaction of the Property, in its sole discretion. (d) Buyer shall have determined that roads, easements, driveways, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes, as determined by Buyer in Buyer's sole discretion. (e) Buyer shall have obtained all watershed, environmental and other governmental approvals and permits (excluding any such approvals and permits as Buyer itself may grant) that Buyer shall deem necessary to use the Property in the manner contemplated by Buyer. (i) Buyer shall be satisfied with the matters disclosed by any survey of the Property obtained by Buyer at Buyer's expense. (g) Seller shall assign and Buyer shall accept and assume all rights, obligations, and interests Seller has in the current rental lease agreement on the Property, and Buyer shall have the right to receive all rental proceeds subsequent to the sale of the Property. Seller shall provide Buyer with the current rental lease agreement on the Property within five (5) days of the Effective Date for review by Buyer. (h) Seller transferring to Buyer all damage deposits associated with current rental leases on the Property or reducing the Purchase Price by an amount equal to the damage deposit posted with and held by Seller. (i) The representations and warranties made by Seller in Section 9 shall be correct as of the Closing Date with the same force and effect as if such representations were made at such time. 0) Formal approval of this transaction by the Andover Economic Development Association at a scheduled Economic Development meeting. 5. CLOSING. Except as otherwise expressly provided in this Agreement, the closing of the sale and purchase contemplated by this Agreement shall occur on August 30, 2024, or on such other date as shall be mutually acceptable to Seller and Buyer (the "Closing Date"). The Closing shall occur at 10:00 a.m., or such other time as shall be mutually acceptable to Seller and Buyer, at such location as shall be mutually acceptable to Seller and Buyer. At the Closing, and subject to performance by Buyer, Seller shall execute in recordable form and deliver a Warranty Deed (the "Deed") to the Property, conveying marketable title to the Property subject only to the "Permitted Exceptions" (defined below), and shall execute and deliver such other and further documents as reasonably shall be required to consummate the transaction contemplated by this Agreement. The Deed shall either be accompanied by a well disclosure certificate prepared and signed on behalf of Seller and filed at Seller's cost, or shall include the following statement: "I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate." At the Closing, and subject to performance by Seller, Buyer shall pay the Purchase Price in cash or other immediately available funds, and shall execute and deliver such documents as reasonably shall be required to consummate the transaction contemplated by this Agreement. At the Closing, Buyer shall pay the state deed tax and any conservation fee on the Deed, and the cost to record any instrument needed to correct title. Buyer shall pay the cost to record the Deed. Buyer shall pay any closing fee charged by the title insurance agency or other company closing the transaction contemplated by this Agreement. For purposes of this Agreement, "Permitted Exceptions" include: A. Building and zoning laws, ordinances, state and federal regulations; B. Reservation of any mineral rights by the State of Minnesota; C. Utility and drainage easements which do not interfere with Buyer's intended use of the Property; D. Public roads upon and County ditches across the Land; and E. Any other matter disclosed by the Title Commitment and not timely and effectively objected to by Buyer. 6. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of Closing shall be prorated between Seller and Buyer on a calendar year basis to the actual Closing Date. Seller shall pay on the Closing Date all special assessments and all current and delinquent real estate taxes levied against or pending for the Property as of the Closing Date. Buyer shall pay real estate taxes due and payable in the year following Closing and thereafter, and any special assessments levied and payable after the Closing Date. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 7. CONDITION OF PROPERTY. Seller shall remove from the Land before the completion of the Closing all debris and personal property not included in the purchase of the Property. 8. BROKERAGE. Buyer and Seller represent that neither party is represented by a real estate agent or broker and no brokerage commissions are due any third parties as a result of this transaction. 9. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller represents and warrants to and covenants with Buyer that: (a) Seller is the owner of fee simple title to the Land; Seller has the power and authority to enter into and perform the terms and conditions of this Agreement, and such performance will not conflict with or result in a breach of any of the terms, conditions or provisions of any agreement or instrument to which Seller is a party or by which it is bound, or constitute a default under any of the foregoing; and this Agreement is valid, binding and enforceable against Seller in accordance with its terms. (b) Seller has not received any notice of, and Seller is not aware of, any violation of any law, municipal ordinance or other governmental requirement affecting the Property, including without limitation any notice of any fire, health, safety, building, pollution, environmental or zoning violation, but specifically excluding any such ordinance of Buyer, as to which Buyer has knowledge at least equal to that of Seller. (c) Seller has not received any written notice of any condemnation or eminent domain proceedings, or negotiations for purchase in lieu of condemnation, relating to the Property, or any portion thereof; and Seller has no actual knowledge that any condemnation or eminent domain proceedings have been commenced or threatened in connection with the Property or any portion thereof. (d) (1) To Seller's knowledge, the Property (A) is not subject to any private or governmental lien or judicial or administrative notice, order or action relating to Hazardous Substances or environmental problems, impairments or liabilities with respect to the Property, and (B) to Seller's knowledge, neither Seller nor the Property is in, or with any applicable notice and/or lapse of time, and/or failure to take certain curative or remedial actions, will be in, violation of any Environmental Laws (as herein defined). (2) Seller shall not, prior to Closing, cause or acquiesce in any Hazardous Substances to exist or be stored, generated, used, located, discharged, released, possessed, managed, processed or otherwise handled on the Property in violation of any Environmental Laws, and shall comply with all Environmental Laws affecting the Property. (3) Seller shall promptly notify Buyer should Seller become aware of (A) any environmental problem or liability with respect to the Property, (B) any lien, order, action or notice of the nature described in subparagraph (1) above, or (C) any litigation or threat of litigation relating to any alleged unauthorized release, discharge, generation, use, storage or processing of any Hazardous Substance or the existence of any Hazardous Substance or other environmental contamination, liability or problem with respect to or arising out of or in connection with the Property. As used herein, "Hazardous Substances" means any matter giving rise to liability under the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et sea., the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Sections 9601 et sea. (including the so-called "Superfund" amendments thereto), or other applicable federal, state or local statute, law, ordinance, rule or regulation governing or pertaining to any hazardous substances, hazardous wastes, chemicals or other materials, including without limitation asbestos, polychlorinated biphenyls, radon, petroleum and any derivative thereof, or any common law theory based on nuisance or strict liability (all of the foregoing statutes, laws, ordinances, rules, regulations and common law theories are sometimes collectively referred to as "Environmental Laws"). (e) No litigation or proceedings are pending or, to Seller's knowledge, contemplated, threatened or anticipated, relating to the Property or any portion thereof. (f) Seller has no knowledge of any unrecorded agreements, undertakings or restrictions which affect the Property. There are no other tenants, persons or entities occupying any portion of the Property other than as disclosed in Seller's current rental leases provided to Buyer from Seller, and to Seller's knowledge no claim exists against any portion of the Property by reason of adverse possession or prescription. (g) To Seller's knowledge (i) there is no obligation with respect to the Property for any assessment, annexation fee, payment, donation or the like (other than general real estate taxes, which are required to be paid by the Buyer); (ii) there are no obligations in connection with the Property of any so-called "recapture agreement" involving refund for sewer extension, oversizing utility, lighting or like expense or charge for work or services done upon or relating to the Property or otherwise; and (iii) there is no unexecuted paving agreement or undertaking with any government agency respecting construction of any acceleration or de -acceleration lane, access, or street lighting. If, prior to the Closing Date, Seller obtains knowledge of a fact or circumstance the existence of which would constitute a breach by Seller of its representations and warranties hereunder or would render any such representations and warranties materially untrue or incorrect, Seller shall promptly notify Buyer in writing of the same. Under said circumstances, and in addition to any other right or remedy that may be available to Buyer, Buyer, at its option, may terminate this Agreement by notice to Seller prior to completion of the Closing. If Buyer timely gives such notice, neither Seller nor Buyer shall have any further rights or obligations under this Agreement except for the Surviving Obligations. All representations, warranties, covenants, indemnities and undertakings made herein shall be deemed remade as of the Closing Date, shall be true and correct as of the Closing Date, shall be deemed to be material and to have been relied upon by Buyer notwithstanding any investigation or other act of Buyer heretofore or hereafter made, and shall survive for a period of twelve (12) months after the Closing Date. 10. POSSESSION. Seller shall deliver possession of the Property not later than the completion of the Closing. 11. EXAMINATION OF TITLE. Title examination will be conducted as follows: A. Seller's Title Evidence. Seller shall furnish to Buyer a commitment (the "Title Commitment") for an ALTA Form B Owner's Policy of Title Insurance, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens, issued by a title insurance company acceptable to Buyer in its reasonable judgment, committing the title insurer to insure Buyer's title to the Property deleting standard exceptions and including affirmative insurance regarding zoning, contiguity, appurtenant easements and such other matters as may be identified by Buyer, with policy limits in the amount of the Purchase Price. B. Buyer's Objections. Buyer shall be allowed ten (10) business days after receipt of the Title Commitment for examination of title and making any objections, which shall be made in writing or deemed waived. 12. TITLE CORRECTIONS AND REMEDIES. Within ten (10) business days after its receipt of Buyer's written title objections, Seller shall either notify Buyer of Seller's intention to make the title marketable or Seller may cancel this Agreement. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of Closing shall not delay the Closing and need not be timely objected to by Buyer. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the Closing shall be postponed. A. If notice is given and Seller makes title marketable within thirty (30) days after Seller's receipt of Buyer's title objections, then upon presentation to Buyer of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the Closing shall take place within ten (10) business days or on the scheduled Closing Date, whichever is later. B. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may, as its sole remedy, cancel this Agreement. C. If title is marketable, or is made marketable as provided herein, and either party defaults in any of the agreements herein, the non -defaulting parry may cancel this Agreement, or may sue the defaulting party for specific performance or for damages for breach of this Agreement, provided such action is commenced not later than six (6) months after such cause of action arose. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 13. NOTICES. All communications, demands, notices or objections permitted or required to be given or served under this Agreement shall be in writing and, except as otherwise expressly provided in this Agreement, shall be deemed to have been duly given or served on the earliest to occur of. when delivered in person to the other party or its duly authorized agent; or one (1) business day after delivery to a same-day or overnight prepaid courier service; or two (2) business days after deposit with the United States Postal Service, postage prepaid, certified or registered mail, return receipt requested, in each case addressed to the other party at the address set forth at the beginning of this Agreement. Either party may change its address by giving at least ten (10) days' notice of such change to the other party. 14. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 15. SELLER'S DISCLOSURES. Seller certifies that there is not an existing individual sewage treatment system on and serving the Property. G7 Seller certifies that there is an existing well serving the Property. Buyer hereby acknowledges that the sale and purchase contemplated by this Agreement is exempt from the disclosure requirements of Minnesota Statutes Sections 513.52 to 513.60. Date: Date: The undersigned agrees to sell the Property for the Purchase Price and on the terms and conditions set forth above. SELLER: Diane Bialick Steven Bialick The City of Andover Economic Development Authority agrees to buy the Property for the Purchase Price and on the terms and conditions set forth above. BUYER: THE CITY OF ANDOVER ECONOMIC DEVELOPMENT AUTHORITY Date: By: James Dickinson Its: Executive Director 7 EXHIBIT A The land referred to is situated in the State of MN, County of Anoka, and is described as follows: UNPLATTED GROW TWP ALL TH PT OF S 1/2 OF NE 1/4 OF SEC 33-32-24 DESC AS FOL COM AT A PT ON S LINE OF SD S 1/2 OF NE 1/4 DIST 550.0 FT W FROM SE COROF SD S 1/2 OF NE 1/4 TH N AT RT ANGLES TO SD S LINE A DIST OF 153.33 FT TO ACTUAL PT OF BEG OF TR OF LAND TO BE HEREBY DESC THCONT N ALONG LAST MENTIONED LINE A DIST OF 103.33 FT TH W & PRLLWITH S LINE OF SD S 1/2 OF NE 1/4 A DIST OF 146.0 FT-TH S AT RT ANGLES TO LAST MENTIONED LINE A DIST OF 103.33 FT-TH E & PARA. WITH S LINE OF SAID S 1/2 OF NE 1/4 A DIST OF 146.0 FT TO ACTUALPT OF BEG TOG WITH AN EASE FOR RD PUR OVER FOL DESC TR RD EASE ALL TH PT OF S 1/2 OF NE 1/4 OF SEC 33-32-24 LYING WITHIN A STP OF LAND 60 FT IN WIDTH BEING 30 FT ON EACH SIDE OF FOL DESC CTR LINE & INCL ALL LAND LYING WITHIN EXTENSIONS OF SIDE LINES OF SDSTP OF LAND COM AT A PT ON S LINE OF SD S 1/2 OF NE 1/4 DIST 520FT W FROM SE COR OF SD S 1/2 OF NE 1/4 TH N AT RT ANGLES TO SD SS LINE A DIST OF 390 FT TH W & PRLL WITH S LINE OF SD S 1/2 OF NE 1/4 A DIST OF 536.20 FT TH ON A TANGENTIAL CURVE CONCAVE TO NE HAVING A RADIUS OF 415.51 FT & HAVING A DELTA ANGLE OF 30 DEG09 MIN FOR A DIST OF 218.65 FT TH N 59 DEG 51 MIN W A DIST OF 359.36 FT MORE OR LESS TO ITS I NTE RSEC WITH CTRLINE OF CNTY S T AID HWY 18 & THERE TERM )OVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: CC: FROM: SUBJECT: DATE: President & Commissioners Jim Dickinson, Executive Joe Janish, Community D Jake Griffiths, Associate Planner Discuss Local Affordable Housing Aid August 20, 2024 0 BACKGROUND In 2023, the State of Minnesota established a new formula -based Affordable Housing Aid program for all local governments in the metropolitan area. The program is designed to help local governments develop and preserve affordable housing within their communities. The amount of aid is calculated based on each community's share of cost -burned households as determined by the American Community Survey conducted by the U.S. Census Bureau, The City of Andover will receive $98.152.49 in Local Affordable Housing Aid in 2024. There are a number of restrictions on the use of aid and qualifying projects that are attached for review. The intent of the Local Affordable Housing Aid is for local governments to spend the money, how that is accomplished is up to each City as long as they meet the program guidelines. Most expenditures of aid funds will need to be income verified. City staff cannot conduct income verification in house, and aid dollars cannot be used on administrative costs. Therefore, any program the City develops using Local Affordable Housing Aid will likely need to be supplemented by non -aid dollars to fund administrative costs such as hiring a consultant to conduct income verification. City staff will provide more information on potential uses of aid dollars during the meeting. Some examples of qualifyingroroiects include: • Emergency rental assistance. • Home improvement assistance. • Financial support to nonprofit affordable housing providers. • Downpayment assistance. • Transfer of funds to a county or regional Housing and Redevelopment Authority (HRA). • Use of funds towards a specified qualifying affordable housing development project. • Other income verified programs. Some examples of projects that would not qualify include: • Conducting a housing or zoning study. • Costs to create a housing improvement area, TIF district, etc. • Staff and services related to general housing quality and licensing, such as code enforcement. • Staff and administrative costs of any qualifying project, or in administering aid dollars. • Commercial, industrial or public space development projects. • Acquisition of properties for speculative or future development. • Demolition of existing structures for speculative or future development. The City also has the right to decline to participate in the Local Affordable Housing Aid program. However, since this program is funded by a 0.25% metro area sales tax if the City declined to participate Andover residents would still be paying for the program even though there would be no benefit. ACTION REQUESTED The EDA is requested to discuss Local Affordable Housing Aid and provide feedback to staff on how to proceed. Please note that the attachment references multiple housing aid programs administered by the State, please ignore any references to the Statewide Affordable Housing Aid (SAHA) program as Andover will not be receiving aid under that program. respectfully submitte , C Jake. Griffiths Associate Planner Attachments Local Affordable Housing Aid Frequently Asked Questions MINNESOTA HOUSING Local and Statewide Affordable Housing; Aid Frequently Asked Questions June 14, 2024 In 2023, the Minnesota Legislature authorized aid payments to counties, cities and Tribal Nations and in 2024 the legislature adopted changes to the aid programs. The goal is to fund affordable housing projects and help organizations provide affordable and supportive housing. Local Affordable Housing Aid (LAHA) is aid to metropolitan local governments of seven counties and 63 cities. LAHA is funded through a new dedicated sales tax in the seven -county metropolitan area. As sales taxes will vary, the amount of LAHA distributed will also vary. Aid payments are made directly to local governments. In the metro, aid is funded by the sales tax for housing. Statewide, aid is funded by state appropriations. Throughout the document, "housing aid" is used when the response applies to both LAHA &Ad &A! IA The information provided in this document does not constitute legal advice and is subject to change. If there are questions regarding how program requirements or criteria apply in specific circumstances, please consult with your own legal counsel. Overview and Requirements Why is there a diNrence between SAHA and LAHA? The primary differences tween LAHA and SAHA are the way they are funded, when funding will be disbursed and to whom. Both aid projects have the sameleigible uses and requirements except for market rate housing. This is only available in certain non -metro titan areas using SAHA. What are the eligible uses of housing aid programs? Qualifying projects for aids payable in 2023 are: • Emergency rental assistance for households earning less than 80% of area median income (AMI) as determined by the U.S. Department of Housing and Urban Development (HUD) • Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing • Development of market rate residential rental properties outside of the metro area if certain conditions are met • Projects designed for the purpose of construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction, refinancing and gap financing of affordable housing For aids payable in 2024, qualifying projects are those listed above plus: • Financing the operations and management of financially distressed residential properties • Funding of supportive services including staffing for supportive housing, which includes financial support to nonprofit services providers and capitalized reserves • Costs of operating emergency shelter facilities, including services For more information, read the complete list of LAHA qualifying projects and SAHA qualifying projects. What is gap financing? Gap financing is the difference between the property costs (including acquisition, demolition, rehabilitation and construction) and • The market value of the property upon sale Mi • The amount the target household can afford for housing (based on industry standards and practices) What are the affordability requirements of LAHA and -SARA? Specific income requirements are provided for: • Emergency Rental Assistance o Less than 80% of AMI {�nda,eir • Homeownership I Rarfvw �`D�tYfO1`� o At or below 115% of the greater of state or area median income — I Lug 1 $30 o Priority for those at or below 80% • Rental Housing o At or below 80% of the greater of state or area median income — � qy 13(®b o Priority for those at or below 50% State and area median incomes are determined by HUD. While there are no income requirements or income qualification for projects supporting nonprofits, organizations should be providing affordable or supportive housing. Some non -metropolitan communities may be eligible to spend aid on market rate developments. There are no income requirements for market rate housing under this category. Are there other requirements if using these funds? Yes. If LAHAis used for new construction of a building with more than four units, the building must be constructed, converted or otherwise adapted to include accessibility features, such as sensory -accessible (see subd. 4). Documentation will be required for reporting and compliance. State Agency Roles and Reporting Requirements What roles do the Department of Revenue and Minnesota Housing play in distributing and tracking local housing aid? The Department of Revenue calculates and distributes the amount of aid available to each government. Revenue also accepts applications from eligible Tribal Nations. Minnesota Housing's statutory role relates to reporting and compliance. First reports are due by December 1, 2025. While not required by the legislation, Minnesota Housing is hiring staff to support housing aid programs with technical assistance and coordination. Does a city, county or Tribe need to apply to receive the funds? For cities and counties there is no application process. Revenue will distribute aid according to statutory requirements. Tribal Nations must apply to receive funds annually. Tribes should work with Revenue to meet this annual requirement. Does a city, county or Tribe need to seek preapproval before spending the funds? No. Approval is not needed before spending funds. However, funds must be used on qualifying projects and expenditures should be documented to avoid repayment or recapture. Will Minnesota Housing be developing a program guide for housing aid? No. Housing aid is not a grant or loan program and is not subject to a program guide. Minnesota Housing will support housing aid programs through guidance and staff support. What are the reporting requirements for the funds? Beginning in 2025, housing aid recipients must submit a report to Minnesota Housing every year by December 1. The report must include documentation of: • Certification that the aid recipient will use the aid funds to supplement and not supplant its existing locally -funded housing expenditures • Qualifying projects completed or planned with the funds • Location of unspent funds • Inability to spend on a qualifying project prior to the deadline (if funds deposited into a local housing trust fund) • Accessibility requirements (for project of four or more units) • Relevant resolution and certifications for market rate developments in non -metropolitan communities • Relevant documentation of locally -funded housing expenditures in prior years, including public notice requirements Additional guidance on the report's format will be provided in the future. Do metropolitan counties need to submit a report for LAHA and one for SAHA? Minnesota Housing is determining if the reports must remain separate. However, if they do, the report format will be the same or substantially similar for LAHA and-SAHA What happens if a city, county or Tribal Nation does not submit a report or does not spend the funds? Reports are due by December 1 every year. The first report is due on December 1, 2025. If the aid recipient fails to submit a report, does not spend funds during the required timeframe, or spends funds on an ineligible project, they must repay the funds. Revenue may also suspend payments to these entities. Detailed information can be found in 477A.35, Subd 6 and 477A.36, Subd. 6. What happens to the aid funds if they are returned or recaptured? If returned, aid funds would be deposited with one or more of Minnesota Housing's programs. This includes Family Homeless Prevention and Assistance Program (FHPAP), the Economic Development and Housing Challenge Program (Challenge), and the Workforce and Affordable Homeownership Development Program as specified in law. Will Minnesota Housing be monitoring the use of housing aid prior to the reporting deadline for cities and counties? Minnesota Housing will not require reporting prior to December 1, 2025, when the first report is due from cities and counties. However, Minnesota Housing will be checking in with local governments to offer support and track spending progress. Definitions and Clarifications What is a Tier I and a Tier II city? — A,. 6je/y- ; s � ''-T7 ,- t' The terms Tier I and Tier II are used to determine cities that will receive aid. A Tier I city is a statutory or home rule charter city that is a city of the first, second or third class. For LAHA, it must be in a metropolitan county. a in a me e F4l1 dof n r n of riti s ,nr L1"&es. A Tier II city is a statutory or home rule charter city that is a city of the fourth class and not located in a metropolitan county (see subd. 4). The bill requires aid be spent on a qualified project. What is the definition of spent? If a project is started but not completed, are the funds considered to be spent? The definition of spent was clarified in 2024 session law. Funds must be committed to a qualifying project by December 31 in the third year following the year the aid was received (for aid received in 2024, this would be December 31, 2027) and expended by December 31 the fourth year after the aid was received. Is SAHA fundinfrom appropriations ongoing? The following tableXat amounts appropriated to SAHA through the fiscal year ending in 2027. The appropriations are base level with one-time increases in the first two years. SAHA Appropriations Fisca ear Ending FYE 6/N/24 6/30/2025 To the 87 counties in $ 13, 0,000 $ 13,050,000 Minnesota FYE FYE 2027 and each 6/30/2026 year after $ 5,550,000 $ 5,550,000 5 SAHA Appropriations Ni cal Year Ending FYE FYE FYE 2027 and each /30/24 6/30/2025 6/30/2026 year after To the 37 cities in $ 500,000 S 4,500,000 > 2,000,000 S 2,000,000 Greater Minnesota To the 7 eligible Tribal $ 2,70 , 00 $ 2,700,000 $ 1,200,000 $ 1,200,000 Nations To Minnesota Housing $ 2,250,000 $ 2,250,000 > 1,250,000 $ 1,250,000 for the Tier II Cities Grants program TOTAL $ 22,500,000 $ 2 , 00,000 $ 10,000,000 $ 10,000,000 How were the funding allocations determined? Revenue determined allocations based on distribution formulas. For counties and cities, these formulas consider cost -burdened households and total population. For Tribal Nations, funds are distributed to Tribes that apply by the deadline. Will Tier \sizeof eceive a disbursement of SAHA? Tier II citiereceive a direct disbursement of SAHA. However, ture appropriated $4.5 million for Tier II cities. Funds will be available as grants in the compec s for a range of rental, homeownership and housing stability activities with a minimum ze of 25,000. Minnesotwill be repaving a program guide, a list of eligible Tier II cities and a request for proposals 2024. Qualifying Projects and Expenses What portion of the housing aid funds can be used for staffing costs and administrative costs? Administrative costs and staffing costs are not listed as an eligible project. Therefore, the funds are not able to be used for these costs. If funds are used for Emergency Rental Assistance (ERA), what portion can be used for navigation, services and administration related to ERA provision and programs? Navigation and services related to providing ERA are eligible aid expenses. However, there is no allowance for administrative costs using housing aids. . D If aid funds are used for demolition or removal of existing structures, does affordable housing need to be constructed on the site? Yes. The expense must be tied to affordable housing for eligible households. Demolition or clearing of land alone, including for speculative or future development of eligible housing, is not an eligible project. Can funds be used for planning activities (soft costs) for new construction and preservation affordable housing projects? Soft costs are only eligible as part of a qualifying project. General or speculative planning activities unrelated to a qualifying project are not an allowed use of funds. Can funds be used for downpayment assistance for homebuyers? Qualifying projects include homeownership projects for income -eligible households. Downpayment assistance may be provided as permanent financing or gap financing, depending on program requirements established by the aid recipient. Can the housing aid funds immediately be deposited into a Local Housing Trust Fund? Funds can be held in a local housing trust fund while recipients determine if a project qualifies. Funds must be spent on a qualifying project by the deadline in statute. Funds remaining in a local housing trust fund past the deadline will only be considered "spent' on a qualifying project if the aid recipient demonstrates that it could not spend funds by the deadline due to factors outside their control. Can funds be transferred to a county or regional Housing and Redevelopment Authority (HRA) if they are spent on qualifying projects? Yes. Funds can be transferred to a county or regional HRA if they are spent on qualifying projects. The original aid recipient is still responsible for all requirements related to the funds, including reporting. Can funds be used for developing new infrastructure, such as utilities and roads, or upgrading existing infrastructure if the infrastructure serves affordable housing? Potentially. The infrastructure would need to be part of a qualifying project. All requirements related to project type, income affordability and other accessible requirements would also need to be met. Speculative site and infrastructure development would not be eligible. Infrastructure development or improvement for sites that include development uses not allowed under this aid program would not be eligible. What are some examples of expenditures ineligible for housing aid? Housing aid should be used for projects that create and preserve affordable housing or stabilize the housing of low-income people. This does not include: • Conducting a housing or zoning study • Costs to create a Housing Improvement Area • Staff and services related to general housing quality and licensure, such as code enforcement • Staff and administrative costs for operation of an HRA or county or city housing department • Commercial, industrial or public space development projects • Projects located outside of Minnesota Housing aid received by Greater Minnesota counties, cities and Tribes in 2023 cannot be used for emergency shelter. However, for aid received in 2024 and after, shelter is an eligible project type. If funds are used to support a nonprofit organization, do they need to be tracked to qualifying projects? Housing aid can be used to provide financial support to a nonprofit affordable housing provider in their mission to provide safe, dignified, affordable and supportive housing. If aid is used in this manner, providing support to the eligible nonprofit is the qualifying project. The aid recipient should document that the funds were used to support the organization's mission. Can a county or city use other state or federal funding as part of a development financing package that includes housing aid funds? Yes. State and federal funding can be used as a part of the project's development financing package. If the funds are held in a Local Housing Trust Fund, can they be used as a match in Minnesota Housing's Local Housing Trust Funds Matching Grants program? No. Housing aid cannot be used as matching funds in the Local Housing Trust Fund Grants program. Only new public revenue, defined as local income committed to the Local Housing Trust Fund on or after June 29, 2021, can be used as matching funds. Can a county use its funds within cities that have also received housing aid? Yes. Counties can spend the funds on qualifying projects anywhere in the county, including cities that directly receive aid. Regional collaboration is encouraged to maximize the aid's impact. A county receiving aid should consult with the cities where projects are planned (see subd. 7). Can aid funds be used to reimburse prior expenditures on eligible projects? No. An aid recipient may not use aid money to reimburse itself for prior expenditures. Will the aid funds trigger other state funding requirements, such as prevailing wage? For questions on labor and wage requirements, contact the Department of Labor and Industry. For questions on the use of sales tax proceeds, contact the Department of Revenue. 0 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 FROM: Joe Janish, Community SUBJECT: Review Commercial Project Activity DATE: August 20, 2024 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCL4L PROJECTS • Clock Tower Commons — City Council approved PUD Amendment to allow for two buildings with drive up windows. First plan review comment letter went out for shell buildings. • Interest in Hughes Industrial Park — Staff continues to have occasional discussions with business owners in the area on expansion. However, they tend to not carry through on the expansion due to costs associated with sprinklers, septic's, etc. Two CSP's/NP's for the two buildings at the entrance are being worked through at the staff level. 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 have received their certificate of occupancy and the City has a $51,000 escrow to complete improvements on the property. • 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. Applicant received an extension for the CUP of 1 year, therefore the CUP will expire early 2025. Aurora Vista (Andover Crossings) — Last staff heard the property is 94% leased. Units include studios, 1 bedroom, 2 bedroom and 2 bedroom w/den. Club room, fitness room, business center and parcel lockers are included. Rents range from $1,325 to $2,255. Andover Crossings — Staff has met with a convenience store looking at a 2 acre parcel. Their desire is to have a convenience store with fuel and also a carwash. The convenience store and fuel with require a conditional use permit (CUP) and the carwash is not currently allowed with the zoning district, it sounds as though they plan to request a code amendment to allow for the carwash, if City Council agrees. Staff also met with the developer and he is interested in constructing a building with a drive thru at the "toe" of the development. If both projects move forward the development would be built out. This item is also under the "other" for additional conversation. Holasek Property (near City Hall) —A Comprehensive Plan Amendment, and rezoning have been acting on by the City Council. Preliminary Plat and PUD are approved by City Council. The applicants are continuing to work through the Preliminary Plat and Commercial Site Plan process. DNR conducted the rare plant inventory and found no rare plants. The applicant is working on their next submittal to us. • 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. hi 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). In 2023 we had 64 new home permits issued. So far in 2024 we have issued 66 home permits. • Fields of Winslow Cove — City Council has approved the Final Plat for Fields of Winslow Cove 2nd addition with 36 lots on the West side of Prairie Road. City Council also approved a Final Plat for Fields of Winslow Cover 3`d Addition with another 109 lots. • Legacy at Petersen Farms — The final plat was recently released for recording purposes. Legacy at Petersen Farms 2nd Addition was approved by City Council. Final Plat was released for recording. • Legacy Christian Academy — Final Inspections are occurring. • Anoka County 911 and Radio Building —City Council approved a request for a fuel tank to be on the property on August 16, 2022. Interior finishes are taking place. County is waiting on some equipment to be delivered prior to the building becoming active. • Grace Lutheran Church — A Conditional Use Permit was granted. They have started work on the new parking lot on the west addition. Final inspections are taking place on the two existing daycare rooms, they are finishing up the new entry. Staff is having conversations related to demolition of the portable classrooms. • Kwik Trip — Cooler/freezer have been placed, working on framing the roof structure over the cooler/freezer. 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. C I T Y O F �V• ND OVER 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, CommunityDevelopment i ector SUBJECT: After the Fact Andover Home Improvement Grant DATE: August 20, 2024 INTRODUCTION Staff was contacted by Susan Warzecka after she completed her home projects. The home projects completed included: new front door with side light, storm door, rear sliding door, 2 service doors, 1 garage window, adding limestone veneer and leger stone, replacement of siding, soffit and facia, vinyl shakes, window/door trim and gutters. The project costs totaled $50,635.37. Warzecka indicated she was unaware of the Andover Home Improvement grant or would have otherwise applied to obtain a match of up to $5,000 towards her project. She was made aware of the program by a neighbor asking if the grant had enticed them to make the improvements. Staff informed her that the program does not allow for "after the fact" items. The Warzecka home would have met the requirements of the program, and staff has been provided photos by the owner. BEFORE: AFTER: Warzecka is requesting the EDA to consider an "after the fact' award of the grant for her projects. The home owner is expected to attend the meeting if the EDA has additional questions. ACTION REQUESTED Consider Discussion, and determine direction to staff. C I T Y O F 10, � ND OVER 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: EDA Commissioners COPY: Jim Dickinson, City Administrato n� Joe Janish, Community Developmen ector FROM: Peter Hellegers, City Planner SUBJECT: Discuss Possible City Code Amendment for Automated Car Wash - Planning DATE: August 20, 2024 DISCUSSION The City has been asked to discuss a possible amendment to the City Code to allow car washes as a use in the Neighborhood Business (NB) zoning district. The City was asked to consider amending the Code to allow an automated car wash use in the NB district. Automated car washes are listed as a Conditional use in the Shopping Center (SC) zoning district, but that they are prohibited in all the other districts. There are currently no standalone automated or self-service car washes in the city. City Code does not allow any car washes in the NB district, so even the car wash accessory to a gas station, which is a permitted use in all other commercial/industrial districts, would be prohibited. There are currently four (4) car washes in the city which are accessory to an automobile service station. These accessory car washes are permitted uses in the Shopping Center (SC), General Business (GB), and Industrial (I) districts but are not currently allowed in the NB district. ACTION REQUESTED The EDA is requested to discuss the merits of a proposed change to allow car washes in the NB zoning district and provide a recommendation. Resp ec y submi e , Pete City Planner CHAPTER II COMMERCIALANDUSTRIAL PERMITTED. PERMITTED ACCESSORY. CONDITIONAL. INTERIX1 AND PROHIBITED USES P - Permitted Use NB - Neighborhood Business PA - Permitted Accessory Use SC - Shopping Center C - Conditional Use' GB - General Business 1- Interim Use 1- Industrial PUD- I^..n^ed Unit Develo mem NB X — Prohibited Use I GB If Use Not Specificatly Luted or Prosdded for Elsewhere In the City Code. It 1% Prohibited Uses "tonin Districts AUTO RELATED USES NB SC I GB I Automobile service stations in coot liance with Cit • Code 12-12-I Car wash (automated) C3 X C2 C C X C X Car wash (self service) X X P P Car wash. accessory to automobile service station School bus terminal X X P P X P P Tram nation terminals or motor freight terminals X X X X Vehicle sales (new) in Compliance with City Code 3.8 X X C C Vehicle sales (used) in Compliance with City Code 3.8 X X C C 3421 PacsanosSte 207 San Mtoriro Texas 78237 Main: 877 627 3772772 � TBP:S Reg. 10194550 • TBPE Reg. F.1490 • TBPG 50617 Engineering & Design July 25, 2024 City of Andover 1685 Crosstown Blvd N.W. Andover, MN 55304 Car wash (automated) - NEC of Bunker Lake & r Ave. Code Amendment Request for allowed uses in the Neighborhood Business (NB) district To whom It may concern, Nle would like to respectfully request an amendment to the city code to allow for a Standalone (Automated) car wash within the Neighborhood Business (NB) District. Currently there are a total of sixteen (16) lots within the City of Andover that are zoned Neighborhood Business. Two of them are vacant lots, and one of them includes an abandoned building that is Up for lease. The rest of the lots are fully developed and vary in types of use. Allowing for a standalone (automated) car wash within the NB district and more specifically for the lot at the NEC of Bunker Lake and Th Avenue would benefit the City of Andover and the residents In area. Currently the nearest car wash within city limits to city residents is located at the SEC of Round Lake Blvd and 1401h Lane (14041 Round Lake Blvd NW). All residents to the north and northwest side of the city must travel to adjacent cities to gain access to their nearest car wash. Below is additional Information specific to the proposed Clean Freak Car Wash that would go in on the NEC of Bunker Lake and 7i1' Avenue. Business Hours: 7am-8pm c This is a very residential friendly use bringing a needed amenity to the area without late night noise or traffic/ parking issues. o Our wash always has at a minimum of 2 staff members present and active or) the lot. Weekends and Evenings will have we will have 3A staff members on site. o We promote neighborhood cleanliness with free vacuums and convenient trash receptacles at each vac station to reduce litter. o Our lots attendants and wash operators are present and active during business hours to keeps lots clean and customers happy. We appreciate your time and consideration regarding our request. Please feel free to contact me using the contact information below for any questions regarding the development. Sincerely, Colliers Engineering & Design, Inc. 0 KTW Engineers * Surveying is new Colhers Engineering R Design jalme Salinas, P.E. Project Manager Jaime Salim7uoaCollierseng.com (210)979.8444 Accelerating success.