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HomeMy WebLinkAboutEDA - October 15, 20241685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING October 15, 2024, 6:00 p.m. Conference Room A and B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (August 20, 2024, Regular) 3. Approve LMCIT Liability Coverage 4. Review EDA & LAHA Special Revenue Funds and Tax Increment Projects Capital Projects Fund 5. Redevelopment Updates (Verbal) 6. Commercial Updates 7. Other Business 8. Adjournment ' A C I T Y NLD6 06 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.ANDOVERMN.GOV TO: Economic Development Authority CC: Dave Berkowitz, Interim City Administrator -05-t!> FROM: Michelle Harmer, City Clerk SUBJECT: Approval of Minutes DATE: October 15, 2024 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: August 20, 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 ECONOMICDEVELOPMENTAUTHORITYMEETING— A UGUST 20, 2024 - MINUTES The Meeting of the Andover Economic Development Authority was called to order by Vice President Jamie Barthel, August 20, 2024, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Sheri Bukkila (arrived at 6:02 p.m.), Ted Butler, Rick Engelhardt and Randy Nelson Commissioners Absent: Kan Kafer and Greg Mueller Also present: EDA Executive Director, Jim Dickinson Community Development Director, Joe Janish Director of Public Works/City Engineer, Dave Associate Planner, Jake Griffiths. APPROVAL OF MINUTES May 21, 2024, Regular Meeting. Correct as written. Motion by Nelson, Seconded by Engelhardt, to approve the minutes as written. Motion carried unanimously. DISCUSS/APPROVE PURCHASE AGREEMENT Mr. Dickinson stated -per direction .from the EDA, staff has negotiated a purchase agreement for the acquisition of the property at 13718 Xavis Street, a twin home located in the redevelopment area. Closing is scheduled for August 30, 2024. Motion by Butler, Seconded by Nelson, approving the Purchase Agreement for 13718 Xavis Street. Motion carried unanimously. DISCUSS LOCAL AFFORDABLE HOUSING AID Mr. Griffiths stated the State of Minnesota established a new tax in the metro area that funds local affordable housing aid for cities. The funds are formula based for each city; Andover could see an estimated $100,000 in 2024. Mr. Griffiths explained the funds can be used for projects geared towards affordable housing. Andover Economic Development Authority Meeting Minutes —August 20, 2024 Page 2 1 There are many restrictions tied to the funds on what it can actually be used for. He reviewed 2 some examples of qualifying projects. If the funds are not spent within four years, the money 3 goes back to the State. Staff is looking for guidance from the EDA Commission on how to 4 proceed. 5 6 Commissioner Butler asked if the funds would fluctuate each year. Mr. Janish answered the 7 funds depend on the revenue since the funds are tax based. 9 Programs were discussed. 10 11 Mr. Janish suggested a program to use the funds for hook-up to city water. This would be 12 similar to the program using CDBG funds from Anoka County. 13 14 The EDA directed staff to come back with more information for programs. 15 16 OTHER BUSINESS 17 18 a. CDBG — Connection Fees 19 20 Mr. Janish reviewed the CDBG program for hooking up to city water indicating there is one 21 property that would qualify; however, the EDA would need to come up with $10,000415,000 to 22 get the federal funds open. Is the EDA open to finding the funds. 23 24 The EDA directed staff to compile more information regarding setting up a city program for 25 properties to hook up to the city water using the funds from the Local Affordable Housing Aid 26 that was discussed earlier. 27 28 b. After the Fact Andover Home Improvement Grant 29 30 Mr. Janish explained a property owner completed home improvement projects totaling 31 $50,635.37 and was unaware of the Andover Home Improvement grant. The property owner is 32 in attendance and is asking the EDA to consider an "after the fact' award of the grant for the 33 projects. 34 35 Mr. Janish indicated the way the program is written if the property owner requests funds after the 36 project is completed, no funds would be granted. 37 38 Commissioner Butler stated he is sympathetic to the property, however if the EDA grants this 39 "after the fact' request that opens the door for other property owners to think that is precedence. 40 41 The property owner left the meeting. 42 43 The EDA consensus was to not grant the "after the fact' request. 44 45 c. Discuss Possible City Code Amendment for Automated Car Wash Andover Economic Development Authority Meeting Minutes —August 20, 2024 Page 3 1 Mr. Janish indicated staff received a request to consider amending the City Code to allow an 2 automated car wash use in the Neighborhood Business (NB) zoning district. 3 4 The EDA has no interesting in amending the City Code to allow an automated car wash in the 5 NB district. 6 7 d. Target Pond 8 9 Mr. Berkowitz indicated the Target pond dock that was built several years ago is in need of 10 replacement. Does the EDA want to replace it. 11 12 The EDA consensus is to not replace the Target pond dock. 13 14 REDEVELOPMENT UPDATES 15 16 Mr. Janish stated 2527 Bunker Lake Boulevard is vacant, no asbestos was found, and the Fire 17 Department will be using the building for training. The building will be removed by the end of 18 the year. 19 20 COMMER CIAL PROJECT A CTIVITY 21 22 Mr. Janish updated on the following: 23 24 Clocktower Commons, 15190 Bluebird Street — Shell permit and interior reviews have been done 25 for Chipotle and Starbucks. 26 27 Aurora Vista, 711 Avenue and Bunker Lake Boulevard — The property is 94% leased. 28 29 Holasek Property (near City Hall) — The applicants are continuing to work through the 30 preliminary plat and commercial site plan process. The DNR conducted the rare plant inventory 31 and found no rare plants. The applicant is working on their next submittal to the City. 32 33 Housing — 66 new home permits have been issued. 34 35 ADJOURNMENT 36 37 Motion by Barthel, Seconded by Nelson to adjourn. Motion carried unanimously. The meeting 38 was adjourned at 6:51 p.m. 39 40 Respectfully submitted, 41 Michelle Hartner, Recording Secretary 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 EDA Commission Members David D. Berkowitz, Interim City Administrator" Lee Brezinka, Finance Manager Approve LMCIT Liability Coverage - EDA October 15, 2024 D 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. Respectfully submitted, �4 � Lee Brezinka Attachment of LMC MEINNESOTA 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(a�lmc.or¢, or fax to 651.281.1298. Members who obtai0 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. 4 466.04. ❑ The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. 4 466.04, 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 Form Page 1 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners CC: David D. Berkowitz, Interim City Administrator FROM: Lee Brezinka, Finance Manager D SUBJECT: Economic Development Authority (EDA) & Local Affordable Housing Aid (LANA) Special Revenue Funds and Tax Increment Projects Capital Projects Fund DATE: ` October 15, 2024 The EDA is requested to receive a brief presentation on the EDA & LAHA Special Revenue Funds and the Tax Increment Projects Capital Projects Fund. DISCUSSION The attached documents will be used as a basis for the presentation and to facilitate discussion: 1. EDA Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balance 2. EDA Budget Detail Worksheets 3. LANA Special Revenue Fund Statement of Revenues, Expenditures and Changes in Fund Balance 4. Tax Increment Projects Capital Projects Fund Statement of Revenues, Expenditures and Changes in Fund Balance 5. September 2024 TIF District Status 6. TIF Rental Properties ACTION REQUESTED Receive a presentation, discuss, and provide direction to staff. Respectfully submitted, Lee Brezinka Attachments City of Andover Special Revenue Funds Economic Development Authority Fund Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out $ 196,839 $ 168,503 $ 168,503 $ 93,251 17,422 Actual 1 Adopted 1 Estimate 1 1 Adopted Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues Intergovernmental Charges for Services Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Personal Services Supplies and Materials Purchased Services Other Services and Charges Total Expenditures: Other Uses Transfers Out $ 196,839 $ 168,503 $ 168,503 $ 93,251 17,422 15,000 10,195 2,000 304 - 27,921 17,000 27,921 17,000 224,760 185,503 2,986 7,536 5,915 19,400 9,114 63,600 38,242 13,100 56,257 103,636 15,000 15,000 2,000 2,000 384 - 17,384 17,000 17,384 17,000 185,887 110,251 7,536 7,536 19,400 16,400 65,700 13,100 71,730 92,636 108,766 Total Expenditures and Other Uses: 56,257 103,636 92,636 Fund Balance, December 31 $ 168,503 $ 81,867 $ 93,251 Change in Fund Balance $ (28,336) $ (86,636) $ (75,252) -14% -51% -45% 108,766 $ 1,485 $ (91,766) -98% Fund: Economic Development Authority Activity Type/Code: Special Revenue Expenditure Hi¢hliahts 2025 continues the Home Improvement Program to assist in exterior home improvements within the City ($25,000). 2024 continues the Home Improvement Program to assist in exterior home improvements within the City ($30,000). EDA Budget provides for ongoing maintenance around the Andover Station Development area. Department Head: City Administrator General Activity Description To provide for the quality development of commercial and industrial properties to ensure a strong, viable and diversified tax base. Process Used Promotion and expansion of the commercial and industrial tax base through the development and redevelopment of land. The EDA is the primary authority involved in managing the City's four Tax Increment Financing (TIF) Districts. The EDA monitors and initiates the activities within the TIF Districts to reach the goals of the TIF plans. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA CITY OF ANDOVER Budget Worksheet - 2025 IrDA 2110-46500 Account Actual Actual Actual Actual Actual Budget Estimate Requested Number Description 2019 2020 2021 2022 2023 2024 2024 2025 =7771 Other Financing Sources 62005 Total Revenues 62010 Water 62100 Salaries & Benefits 60110 Charges for Services 60140 Salaries - Council/Cormnissio 60210 FICA 60220 Medicare 60310 Rcalth hrsumnce 54370 Tax Increment Administration F 7,096 26,006 27,528 22,447 17,422 15,000 15,000 15,000 Charges for Services 7,096 26,006 27,528 22,447 17,422 15,000 15,000 15,000 4,111 Investment Income 56910 Interest Famed 56920 Valuation Adjustment 61310 Investment Income 61315 Miscellaneous Revenue 58100 Refunds & Reimbursements 61405 Miscellaneous Revenue 61410 Other Financing Sources 59100 Operating Transfers In (440) Other Financing Sources 62005 Total Revenues 62010 Water 62100 Salaries & Benefits 60110 Salaries - Regular 60140 Salaries - Council/Cormnissio 60210 FICA 60220 Medicare 60310 Rcalth hrsumnce 60320 Dcmallnsumnce 60340 Long -Term Disability 60410 PERA 60420 Nationwide Retirement 60520 Workers Comp 60990 Inter -City Labor Allocation 65300 Salaries & Benefits 4,111 Departmental 61005 Supplies -General 61130 R & M Supplies - Landscape 61310 Mcals/Lodging 61315 Continuing Education 61320 Annual Dues/Licenses 61405 Postage 61410 Transportation/Mileage 6,231 Departmental (440) Operating 62005 Electric 62010 Water 62100 Insurance 62200 Rentals 62210 Computer Services 953 Operating - Professional Services 63005 Professional Services 63010 Contractual Services 63015 Attorney 63025 Publishing 63100 R & M Labor -General Professional Services Capital Outlay 65300 Improvements 150,000 Capital Outlay Total Expenditures Net Increase (Decrease) in FB Fund Balance 150,000 Beginning Ending 4,111 2,491 1,007 2,148 3,994 2,000 2,000 2,000 2,120 (56) (1,447) (7,580) 61201 - - - 6,231 2,435 (440) (5,432) 10,195 2,000 2,000 2,000 177 443 1,308 953 304 - 384 - 177 443 1,308 953 304 384 - 150,000 150,000 13,504 28,884 28,396 167,968 27,921 17,000 17,384 17,000 129 405 611 698 537 - - - 2,280 2,800 1,720 1,520 1,720 7,000 7,000 79000 158 197 143 134 137 434 434 434 37 46 34 31 32 102 102 102 208 241 1,176 275 443 - - - 8 9 8 8 11 4 4 3 3 4 21 31 25 26 40 - - - 46 45 44 42 41 - - - 5 14 23 19 21 - - - 2,896 3,792 3,787 2,756 2,986 7,536 7,536 7,536 95 150 1,053 - - 2,000 2,000 29000 - - - - 7,500 7,500 7,500 15 - - 100 75 700 700 700 295 - - - - 1,500 1,500 1,500 1,031 1,043 1,043 1,160 1,198 1,500 1,500 1,500 135 2,617 201 2,759 2,842 4,000 4,000 1,000 1,800 1,800 1,800 1,800 1,800 2,200 2,200 2,200 3,371 5,610 4,097 5,819 5,915 19,400 19,400 16,400 3,000 3,130 19094 3,229 3,635 6,000 5,000 6,000 17 330 924 177 355 - - - 6,099 49071 3,466 7,552 3,524 5,500 5,500 5,500 2,000 - - - - - - - 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 12,716 9,131 7,084 12,558 9,114 13,100 12,100 13,100 2,854 2,595 1,989 2,682 5,409 6,100 6,100 6,230 39,318 209414 209924 89,741 32,458 53,000 45,000 61,000 - 307 - 180 - 2,000 1,000 2,000 992 667 971 917 375 2,500 1,500 2,500 1,025 43,164 25,008 23,884 93,520 38,242 63,600 53,600 71,730 30,151 30,151 62,147 73,692 38,852 114,653 56,257 103,636 92,636 108,766 (48,643) (44,808) (10,456) 53,315 (28,336) (86,636) (75,252)(91,766) 247,431 198,788 153,980 143,524 196,839 168,503 168,503 93,251 198,788 153,980 143,524 196,839 168,503 81,867 93,251 1,485 101412024 City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department I Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested 2024 2025 Budget Adjustment Total 2025 Request Priority 1 through 5 1 -high : 5 -low 61005 SUPPLIES -GENERAL 2,000 2,000 paper/promotions supplies 0 0 0 0 Total 2,000 01 2,000 61130 R & M SUPPLIES - LANDSCAPE 7,500 7,500 0 0 0 0 Total 7,500 0 7,500 61310 MEALS I LODGING 700 700 Special events participation - Staff/Commission 0 0 0 0 Total 700 0 700 61315 CONTINUING EDUCATION 1,500 1,500 Training opportunities - Staff/Commission 0 0 0 0 Total 1,500 0 11500 61320 ANNUAL DUES / LICENSES 0 0 Chamber of Commerce Dues 500 500 -Anoka Area & Metro North 1,000 1,000 0 0 Total 1,500 0 1,500 61405 POSTAGE 1,000 1.000 Newsletter Publication & Mailings 0 0 North Metro Guide 3,000 (3,000) 0 Total 4,000 (3,000) 1,000 61410 TRANSPORTATION / PARKING 2,200 2,200 Staff/Commision Travel 0 0 Executive Director % allocation 0 0 0 0 Total 2,200 01 2,200 62005 ELECTRIC 6,000 6,000 Andover Station Area Street Light Cost Sharing 0 0 0 0 Total 6,000 0 6,000 62100 INSURANCE 5,500 5,500 Risk Management/LMCIT Premiums 0 0 0 0 Total 5,500 0 5,500 62210 COMPUTER SERVICES 1,600 1,600 Central systems - Server/emailArraging/etc. 0 0 0 0 Page ! of 2 City of Andover Budget Detail for all Object Codes (List each expense account individually with specific cost detail) Department I Cost Center: Economic Development - 2110 Object Code Explanation Amount Requested 2024 2025 Budget Adjustment Total Priority 2025 1 through 5 Request 1 -high : 5 -low Total 1,600 0 1,600 63005 PROFESSIONAL SERVICES 3,500 3,500 Audit 2,600 130 2,730 0 0 Total 6,100 130 6,230 63010 CONTRACTUAL SERVICES 1,000 1,000 Landscaping @ Andover Station - assoc membership 2,000 2,000 Maintenance - Andover Station Area 10,000 5,000 15,000 Partnership opportunities/promotional - EDA Discretionary 10,000 3,000 13,000 Home Improvement Program 30,000 (5,000) 25,000 0 0 Local Affordable Housing Aid Program Mgmt 0 5,000 5,000 Total 53,000 8,000 61,000 63015 ATTORNEY 2,000 2,000 0 0 0 0 Total 2,000 0 2,000 63025 PUBLISHING 2,500 2,500 Tax Increment Reporting 0 0 0 0 Total 2,500 0 2,500 Grand Total for all Expenditures $96,100 $5,130 $101,230 Page 2 of 2 City of Andover Special Revenue Funds Local Affordable Housing Aid Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 $ $ $ $ 100,000 Revenues Intergovernmental 100,000 100,000 Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ Change in Fund Balance $ 100,000 100,000 100,000 200,000 100,000 100,000 $ $ 100,000 $ 100,000 $ $ 100,000 $ - n/a n/a n/a 0% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 $ $ $ $ 100,000 Revenues Intergovernmental 100,000 100,000 Other Sources Transfers In Total Revenues and Other Sources: Total Available: Expenditures Other Services and Charges Other Uses Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 $ Change in Fund Balance $ 100,000 100,000 100,000 200,000 100,000 100,000 $ $ 100,000 $ 100,000 $ $ 100,000 $ - n/a n/a n/a 0% Fund: Local Affordable Housing Aid Activity Type/Code: Special Revenue Expenditure Hiehliahts This is a fund created to track the Local Affordable Housing Aid program. Aid began in 2024 and is funded by a new dedicated sales tax on housing transactions in the seven -county metropolitan area. Department Head: Community Development Dir. General Activity Description Local Affordable Housing Aid helps local governments develop and preserve affordable housing within their jurisdictions to keep families from losing housing and to help those experiencing homelessness find housing. Process Used The Minnesota Department of Revenue will distribute the aid semi annually to the City and the aid will be disbursed to qualified applicants. Qualifying projects include: - Emergency rental assistance for households earning less than 80 percent of area median income; and - Financial support to nonprofit affordable housing providers in their mission to provide safe, dignified, affordable and supportive housing; and - Projects designed for the purpose of construction, acquisition, rehabilitatioin, demolition or removal of structures, construction financing, permanent financing, interest rate reduction, refinancing, and gap financing of housing to provide affordable housing to households that have certain incomes. - Housing developed or rehabilitated with funds under this section must be affordable to the local work force. ADOPTED 2025 BUDGET CITY.OF ANDOVER, MINNESOTA Local Affordable Housing Aid Account Acmal Actual Number Deseription 2019 2020 Revenues IntergoVt- Federal 53110 Comm Development Block Grant Intergov't - Federal - - Investment become 56910 Interest Earned 56920 Valuation Adjustmera Investment Income Miscellaneous Revenue 58100 Refunds &Reknbursemems Miscellaneous Revenue Total Revenue Expenditures Depamnemal 61005 Supplies -General Departmental - - Pmfessimul Services 63010 Contractual Services - 63105 R&M Labor -Building Professional Services Total Expenditures Net Increase (Decrease) in FB Food Balanee Beginning Ending CITY OF ANDOVER Budget Worksheet -2025 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 - 100,000 100,000 100,000 /0/4/1024 2111-46500 Actual Actual Actual Budget ESBmate Requested 2021 2012 2023 2024 2024 2025 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 - 100,000 100,000 100,000 /0/4/1024 City of Andover Capital Projects Funds Tax Increment Projects Statement of Revenues, Expenditures and Changes in Fund Balance Fund Balance, January 1 Revenues Tax Increments Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 970,460 $ 985,834 $ 985,834 $ 256,916 100,476 51,499 104,333 256,308 256,308 1,226,768 240,934 240,934 240,934 $ 985,834 $ 15,374 2% 100,475 20,000 270,000 390,475 390,475 1,376,309 299,893 800,000 1,099,893 1,099,893 $ 276,416 $ (709,418) -72% 100,582 7,500 120,000 228,082 228,082 1,213,916 317,000 640,000 957,000 957,000 $ 256,916 $ (728,918) -74% 70,000 90,000 160,000 160,000 416,916 277,126 277,126 277,126 $ 139,790 $ (117,126) -46% Actual 1 Adopted 1 Estimate 1 Adopted 1 Description 2023 2024 2024 2025 Fund Balance, January 1 Revenues Tax Increments Investment Income Miscellaneous Total Revenues: Other Sources Transfers In Total Revenues and Other Sources Total Available: Expenditures Other Services and Charges Capital Outlay Total Expenditures: Other Uses Operating Transfers Out Total Expenditures and Other Uses: Fund Balance, December 31 Change in Fund Balance $ 970,460 $ 985,834 $ 985,834 $ 256,916 100,476 51,499 104,333 256,308 256,308 1,226,768 240,934 240,934 240,934 $ 985,834 $ 15,374 2% 100,475 20,000 270,000 390,475 390,475 1,376,309 299,893 800,000 1,099,893 1,099,893 $ 276,416 $ (709,418) -72% 100,582 7,500 120,000 228,082 228,082 1,213,916 317,000 640,000 957,000 957,000 $ 256,916 $ (728,918) -74% 70,000 90,000 160,000 160,000 416,916 277,126 277,126 277,126 $ 139,790 $ (117,126) -46% Fund: 4501 Cost Center: Tax Increment Projects Activity Type/Code: Capital Projects Expenditure 1E2hli2hts 2025 Budgeted expenditures include: Redevelopment Site Purchases $ Pay -As -You -Go Note 70,000 Rental Property Expenditures 90,000 TIF Administration 117,126 $ 277,126 2024 Budgeted expenditures include: Redevelopment Site Purchases $ 800,000 Pay -As -You -Go Note 69,893 Rental Property Expenditures 130,000 TIF Administration 100,000 $ 1,099,893 TIF District 1-1 was decertified in 2012 and TIF District 1-2 was decertified in 2014. TIF District 1-3 and TIF District 1-4 was decertified in 2016. Department Head: Finance Director General Activity Description The Tax Increment Projects Fund accounts for activities in TIF districts 1-1, 1-2, 1-3, 1-4, 1-5 and 1-6 and all TIF land sales and expenditures to reach the goals of the TIF district plans. Process Used Promotion and expansion of the commercial / industrial tax base through redevelopment of land. ADOPTED 2025 BUDGET CITY OF ANDOVER, MINNESOTA September 24 CITY OF ANDOVER Fund Balance Analysis - TIF Project Accounts Districts 1-1 & 1-2 TIF Potential TIF Potential Projects Project Account Year Land Sales Expenses 4-plex 2-plex Interest Fund Balance 12/31/2023 $ 879,626 2024 (130,000) (640,000) 7,500 117,126 2025 (117,126) - - (247,126) (640,000) 7,500 Budgeted at: $450k each $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) vacant bldg 2020 2556 138th Ave NW (quad) vacant lot 2020 2513 Bunker Lake Blvd (twin) vacant lot 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 2461 Bunker Lake Blvd (twin) rental 2024 13718 Xavis St NW (twin) rental 2024 to be used for fire training and torn down September 24 Redevelopment District 1-5 Arbor Oaks fund 4515 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 12/31/2023 $ 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 ,n. ^fx"M14W'W xJiiv/n•{'i A3^F^nIF^'R Economic Development District 1-6 TE Connectivity fund 4516 Tax TIF Potential TIF Potential Increment Project Account Year Land Sales Expenses Projects Revenue Interest Fund Balance 12/31/2023 $ (13,277) 2024 30,582 17,305 will be decertified CITY OF ANDOVER TIF Rental Properties 2600 138th Ave NW (quad) 2543 Bunker Lake Blvd NW (quad) 2557 Bunker Lake Blvd NW (quad) 2526 138th Ave NW (quad) 2542 138th Ave NW (quad) 2527 Bunker Lake Blvd NW (quad) 2556 138th Ave NW (quad) 2513 Bunker Lake Blvd (twin) 2621 Bunker Lake Blvd (quad) 2607 Bunker Lake Blvd (quad) 29-32-2442-0006 Round Lake Blvd 2503 138th Ave NW (twin) 2461 Bunker Lake Blvd (twin) 13718 Xavis St NW (twin) Purchased vacantlot 2017 vacantlot 2018 vacantlot 2019 2020 2017 2021 2018 2022 2023 vacantlot 2024 -Sep YTD Revenues 2020 vacantlot 2020 rental 2020 vacantlot 2021 rental 2022 rental 2024 rental 2024 Rent $ 3,677.75 $80,711.25 $88,903.00 $100,147.00 $204,475.76 $155,629.25 $104,333.25 $ 57,730.00 Interest 10.04 720.50 2,467.00 2,532.00 27.00 (3,903.00) 6,929.00 808.00 Total Revenue 3,687.79 81,431.75 91,370.00 102,679.00 204,502.76 151,726.25 111,262.25 58,538.00 Expenditures Salaries & Benefits - - _ _ _ _ _ _ Departmental 8.96 51.23 1,976.37 323.98 1,275.00 - 1,484.85 - Operating 608.64 24,157.09 31,691.00 39,978.00 81,061.52 80,629.59 66,894.31 52,468.00 Professional Services 418.00 20,068.85 16,813.00 44,161.00 84,746.88 68,893.99 61,931.94 27,191.00 Equipment _ _ _ Total Expenditures 1,035.60 44,277.17 50,480.37 84,462.98 167,083.40 149,523.58 130,311.10 79,659.00 Net increase (decrease) in fund balance 2,652.19 37,154.58 40,889.63 18,216.02 37,419.36 2,202.67 (19,048.85) (21,121.00) Fund Balance - January 1 - 2,652.19 39,806.77 80,696.40 98,912.42 136,331.78 138,534.45 119,485.60 Fund Balance- December 31 $ 2,652.19 $39,806.77 $80,696.40 _L98,912 $136,331.78 $138,534.45 $119,485.60 $ 98,364.60 2600 138th Ave NW (quad) 2543 Bunker Lake Blvd NW (quad) 2557 Bunker Lake Blvd NW (quad) 2526 138th Ave NW (quad) 2542 138th Ave NW (quad) 2527 Bunker Lake Blvd NW (quad) 2556 138th Ave NW (quad) 2513 Bunker Lake Blvd (twin) 2621 Bunker Lake Blvd (quad) 2607 Bunker Lake Blvd (quad) 29-32-2442-0006 Round Lake Blvd 2503 138th Ave NW (twin) 2461 Bunker Lake Blvd (twin) 13718 Xavis St NW (twin) Purchased vacantlot 2011 vacantlot 2017 vacantlot 2017 vacant lot 2017 rental 2018 rental 2020 vacantlot 2020 vacantlot 2020 vacantlot 2020 rental 2020 vacantlot 2021 rental 2022 rental 2024 rental 2024 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners CC: Dave Berkowitz, Interim City Administrator 1A, FROM: Joe Janish, Community Development Director, SUBJECT: Review Commercial Project Activity DATE: October 15, 2024 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCIAL PROJECTS • Clock Tower Commons — City Council approved PUD Amendment to allow for two buildings with drive up windows. Shell permits have been issued for Starbucks and Chipotle and construction is taking place. • Interest in Hughes Industrial Park— Staff continues to have occasional discussions with business owners in the area on expansion. However, they tend not to carry through on the expansion due to costs associated with sprinklers, septic's, etc. 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. A few items remain 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. Currently staff has received a Commercial Site Plan for a different business to be located on the site. This would require a Conditional Use Permit for a drive thru at this location. Aurora Vista (Andover Crossings) — Last staff heard the property is 94% leased. Units include studios, 1 bedroom, 2 bedroom and 2 bedroom w/den. Clubroom, 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 a carwash. The convenience store and fuel with require a conditional use permit (CUP) and they have apparently dropped the idea of a carwash at this time. 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 fully 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. • 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 3rd Addition with another 109 lots. • Legacy at Petersen Farms — The final plat is recorded for 151 and 21 Addition. • Meadows East - A PUD application was received for property east of Country Oaks North for a rural development. They are proposing 15 rural lots on roughly 33 acres. • 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). In 2023, we had 64 new home permits issued. So far, in 2024 we have issued 76 home permits. • 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 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. They are working on the exterior parts of the remodel. • Bunker Hills Park — Anoka County Parks is replacing two pavilions. The steel is being erected. • Walmart — Walmart is looking at an addition to their building to facilitate their online order pick UPS. • Transform Church — Is currently working on a parking lot expansion. • 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.