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HomeMy WebLinkAbout2025-01-21 EDA Agenda PacketNDOVEk T Y O F 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING January 21, 2025 6:00 p.m. Conference Room A and B 1. Call to Order — 6:00 p.m. 2. Approval of Minutes (December 17, 2024) 3. Organizational Items — Appoint Officers of the Andover Economic Development Authority (EDA) 4. LAHA City Water Connection Grant Program 5. Placer.ai Discussion 6. Commercial Updates 7. Redevelopment Updates (Verbal) 8. Other Business 9. Adjournment 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Economic Development Authority CC: Sarah Cotton, City Administrator FROM: Michelle Hartner, City Clerk SUBJECT: Approval of Minutes DATE: January 21, 2025 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: December 17, 2024 Regular T)TCC'T TRCTCIN 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 DEVELOPMENT A UTHORITY MEETING— DECEMBER 17, 2024 - MINUTES The Meeting of the Andover Economic Development Authority was called to order by President Sheri Bukkila, December 17, 2024, 6:00 p.m., at the And City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Commissioners Absent: Also present: APPROVAL OF November 19, 2024, Motion Jamie Barthel, Ted B 6:01 p.m.) and Greg Rick EDA Executive M W Kari Kafer (arrived at ,Joe Janish ineer, Dave Berkowitz itten. minutes as written. Motion carried S PROGRAM Mr. Janish indicated at the last EDA meeting there was a discussion to make some revisions to the 2025 Home Improvement Program. He stated the median market value of qualifying homes will remain the same as 2024 atl-2J9,000. Language has been added to allow past recipients to apply for a second project fterYlay 1, 2025, if funds are available. Mr. Janish reminded the EDA they do have the ability to modify the program at any point. Commissioner Nelson indicated on page 12 of the agreement the word acknowledgement should be acknowledge. Motion by Butler, Seconded by Nelson, to approve the 2025 Andover Home Improvement Program Application as amended. Motion carried unanimously. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Andover Economic Development Authority Meeting Minutes —December 17, 2024 Page 2 REDEVELOPMENT UPDATES Mr. Janish indicated the building at 2527 Bunker Lake Boulevard was taken down and the area was hydroseeded. Mr. Janish reviewed the properties with tenants. He added the tenants have received notice that leases will not renewed the end of June. Mr. Janish indicated once the buildings are vacant the plan is to have them taken down by the end of 2025 for property tax purposes. Commissioner Butler asked when the property would begin to be marketed. Mr. Janish replied mid -2025 conversations will begin with the EDA regarding marketing. COMMERCIAL PROJECT ACTIVITY Mr. Janish updated on the following: Clocktower Commons, 15190 Bluebird Street — Shell permits for Chipotle and Starbucks have been issued. Construction is taking place. Interest in Hughes Industrial Park — Staff continues to have discussions with business owners in the area of expansion, however they tend not to carry through on the expansion due to costs. ABC Mini-Storage/T-Squared (self -storage), 13624 Hanson Boulevard — Two items remain to be completed before the escrow can be released. Restaurants/Fast Food — Currently staff is aware of companies continuing to look for land to locate to in Andover. Commissioner Barthel asked about the excessive parking at Target that is never used, could that be used for a business. Mr. Janish indicated it could, however Council would need to change the required 10 -foot stalls to either 8 -or 9 -foot stalls. President Bukkila indicated she would rather look at reducing the number of stalls required as people are shopping differently these days. TCF Site — Staff has received a Commercial Site Plan for Chase Bank to locate on the site. Andover Crossings, 71 Avenue and Bunker Lake Boulevard — Circle K/Holiday continues to work through the Commercial Site Plan. A Conditional Use Plan was approved by Council. Holasek Property (near City Hall) — The applicant has provided their next submittal to the City for review. They are planning on obtaining their building permit in April 2025. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Andover Economic Development Authority Meeting Minutes —December 17, 2024 Page 3 Fields of Winslow Cove — City Council approved the final plat for the Fields of Winslow Cove Yd addition with 109 lots. Lakeview at Sloth Farm, 13624 Gladiola Street — City Council will review a sketch plan for a 7 - lot subdivision located at the former Sloth Nursery site. Legacy at Petersen Farms — The final plat is recorded for the 1St and 2nd additions. Hartmanns Meadows — 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. The City Council voted to deny this request. Housing — 99 new home permits have been issued. Anoka County 911 and Radio Building - The County received the switch gear they had been waiting on, now Connexus Energy needs to make the final connection. Grace Lutheran Church, 13655 Round Lake Boulevard — They are working on the exterior parts of the remodel. The screening of the HVAC units has not been completed. Bunker Hills Park — Anoka County Parks is replacing two pavilions. Walmart — Walmart is looking at an addition to their building to facilitate their online order pickups. Staff has completed the Commercial Site Plan review. They ran into some issues with the required energy code. Transform Church — The final lift of the parking lot will be completed this spring. 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 B USINESS Mr. Janish indicated an application has been submitted for the area in front of the Andover Cinema. The applicant would like a building for a dentist office and a separate building for a rapid oil change. Automotive use would require a Conditional Use Permit. Commissioner Barthel stated there are several automotive locations in the city that do oil changes. Commissioner Butler indicated MedExpress by Walgreens has left. Mr. Janish stated the city was notified the day they left. He is unaware of what may go in there. ADJOURNMENT Andover Economic Development Authority Meeting Minutes —December 17, 2024 Page 4 1 Motion by Barthel, Seconded by Nelson to adjourn. Motion carried unanimously. The meeting 2 was adjourned at 6:30 p.m. 4 Respectfully submitted, 5 6 Michelle Hartner, Recording Secretary sit 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: FROM: SUBJECT: DATE: President and Commissioners Sarah Cotton, Executive Director CP'v Organization Item — Appoint Officers of the Andover Economic Development Authority (EDA) January 21, 2025 INTRODUCTION The Andover EDA is comprised of seven (7) commissioners, five (5) commissioners are the members of the Andover City Council serving terms that coincide with the Council terms and two (2) voting resident members serving six (6) year terms. DISCUSSION Below are the current Andover EDA officers and staff appointments: President Sheri Bukkila (Term expires 01/07/25) Vice -President Jamie Barthel (Term expires 01/05/27) Secretary Ted Butler (Term expires 01/07/25) Treasurer Kari Kafer (Term expires 01/0 1 /26) —resident Assistant Treasurer Greg Mueller (Term expires 01/01/26) — resident Commissioner Rick Engelhardt (Term expires 01/05/27) Commissioner Randy Nelson (Term expires 01/07/25) Executive Director Sarah Cotton Staff Executive Director Sarah Cotton Recording Secretary Michelle Hartner Staff Support Joe Janish ACTION REQUESTED Discuss/Appoint officers for the EDA and corresponding Support Staff. Respectfully submitted, �Cuojv� W05Q Sarah Cotton 0 tND61YR41k 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: EDA President and Commissioners CC: Sarah Cotton, Executive Director (� FROM: Aidan Breen, Associate City Planner SUBJECT: LAHA City Water Connection Grant Program DATE: January 21, 2025 INTRODUCTION During the August 20, 2024 EDA meeting and the September 24, 2024 City Council Workshop, members discussed options for utilizing the Local Affordable Housing Aid (LAHA) funds that are allocated to the City of Andover. Due to recent discoveries of well water pollution and subsequent efforts to connect homes in contaminated areas, it was determined that it would be a high priority to utilize LAHA funds to connect homes to city water, The LAHA funds had a higher maximum income threshold than CDBG grants for residents to qualify for the grant (115% of Area Median Income), and would only require the city to pay administrative costs. City Staff have contacted the Center for Energy. and the Environment (CEE) as a possible contracted administrator for this grant program, as CEE has administered similar programs in nearby communities, such as Champlin. Under the proposed agreement, CEE would assist in marketing the program, field all applications, verify the income of all applicants, and select the grantees. The EDA would be required to provide the funding for the program. Highlights of the Program: • The project cost would have to be between $15,000 and $33,000. LAHA funds would pay all eligible project expenses. Administrative costs would be paid by the EDA. • Andover will use the 2024 LAHA award of $98,152.49 as the 2025 LAHA City Watter Connection Grant budget. The LAHA program is currently funded at the state level for three years (2024-2026), and the award amounts vary year-to-year based on sales tax income • The proposed 2025 budget would pay for roughly 3 city water connections. • The 2024 AMI for Andover was $124,200. Households under 115% of the Area Median Income (AMI) would qualify for the grant ($142,830). Priority must be given to applicants under 80% of the AMI ($99,360). Grants will be awarded on a first-come first-served basis to qualifying applicants. Eligibility Requirements • Household income under 115% AMI based on household size. Priority must be given to households at 80% AMI or lower. • 1-4 unit owner -occupied properties in Andover. • Homestead status with Anoka County Property Records. • Current on Anoka County property taxes. • One bid will be required to complete the application. CEE, in consultation with city staff, will provide guidance for obtaining a bid from a trusted contractor. • Applicants will need to coordinate with their contractors to file building permits PROGRAM BUDGET & ADMINISTRATIVE COSTS The budget for the LAHA City Water Connection grant for 2025 will be $98,152.49, the amount of the 2024 LAHA funds awarded to the City of Andover. City staff have engaged with the Center for Energy and Environment (CEE) regarding the administration of potential programs and conducting income verification of applicants. CEE is a Twin Cities based nonprofit that currently administers various aid programs for the cities of Anoka, Blaine, Coon Rapids, and Fridley. CEE is willing to contract with the City to administer potential aid programs based on the following fees: Annual Administration Fee: $2,500 ($1,875 pro -rated cost for 2025 assuming a 3/1/25 start date) Origination Fee: $600 per grant closed One Time Program Set -Up Fee: $1,500 Estimated 2025 Admin Costs: $5,175 (assumes 3 grants are closed in 2025) Estimated 2026 Admin Costs: $4,300 (assumes 3 grants are closed in 2026) In exchange for these fees, CEE would intake all applications for aid dollars, work with applicants to obtain financial documents, conduct income verification, work with applicants on securing bids and selecting contractors for work, issuing payments to contractors, ensuring work is completed, etc. The addition of future programs to this contract would also be at a discounted rate and would not require the one-time program set up fee. City staff did reach out to several other firms for quotes on administering aid dollars and CEE was by far the best suited and most cost-effective option. Administrative costs would come from the EDA's budget and cannot be funded utilizing aid dollars. There is enough money in the EDA budget to cover the administrative costs of the program for 2025 and 2026. See Exhibit B provided by CEE for a draft of the program budget. CONTRACT CEE has provided a draft contract (Exhibit C) between CEE and the Andover EDA. This contract is written to expire at the end of 2025. If the EDA wishes to continue the program, the contract may be amended annually in the Fall to extend for another year. At the time of contract amendment, the budget for the following year would be set using the LAHA funds awarded to Andover for that year. For example, extending the contract through 2026 would utilize the 2025 LAHA funds. LAHA REPORTING & AID REQUIREMENTS Beginning in 2025, the City of Andover must submit a report annually, no later than December 1 of each year, to Minnesota Housing. The report must include documentation of the location of any unspent funds distributed under the LAHA program and of qualifying projects completed or planned with LAHA funds. Funds must be spent on qualifying projects by December 31 of the fourth year after the aid was received. Attachments: Draft of public -facing policy handout Exhibit A — Program Guidelines (Provided by CEE) Exhibit B — Draft of Program Budget (Provided by CEE) Exhibit C — Draft of Contract with CEE for Grant Program Administration (Provided by CEE) Exhibit D — Example Participation Agreement for Approved Grantees (Provided by CEE) • ' C'1 . 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV Local Affordable Housing Aid (LAHA) City Water Connection Grant LAHA Program Overview In 2023, the Minnesota Legislature authorized aid payments to cities 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 year-to-year. The City of Andover received $98,152.49 in Local Affordable Housing Aid in 2024, which will serve as the program budget for 2025. Due to recent well water contamination issues and the high cost of connecting homes to city water, the Andover Economic Development Authority (EDA) has determined that the top priority for these funds is to provide grants for income -qualifying homeowners to connect to city water. See Page 2 for income eligibility details. The Andover EDA has selected the Center for Energy and Environment (CEE) as their grant program partner to administer the LAHA City Water Connection Grant. Purpose The purpose of the LAHA City Water Connection Grant is to pay the full cost, up to $33,000, for connecting the home of an income -qualifying applicant to city water and properly abandoning any private well(s) that had previously been used. As the cost for a city water connection is quite high, it is unlikely that income -qualifying residents would be able to afford these connections without public assistance, like grants such as this. Connecting a home to city water services ensures high water quality and safety for Andover residents and protects income -qualifying residents from high one-time expenses. Grant Details Grant amounts will be awarded to cover 100% of eligible project expenses (see below) with total amounts up to $33,000 per applicant. One grant may be awarded per property. Grant funding will be awarded a first come, first served basis as recipients qualify, and will be paid directly to contractors after the work is completed and inspected. Grant dollars do not need to be repaid. All recipients must own and occupy the property. The project must result in the dwelling's connection to the city water system and proper abandonment of all private wells. All work must be completed within 120 days of the grant closing, though extensions may be granted due to weather or similar factors. Eligible Project Expenses: • Connection to City Water • Plumbing Modifications to Facilitate Connection to City Water • Payment of City Fees Including Cost of Water Meter and Accessories • Property Restoration • Proper Abandonment of Private Well Ineligible Project Expenses: • Any project not listed as an eligible project expense • Payment for work initiated prior to the grant being approved and closed, unless due to an emergency subject to EDA approval. • Homeowner labor or other in-kind contributions to the project. Income Eligibility LAHA funds for home improvements are income -restricted by state law. CEE will conduct income verification for all applicants. To be eligible for the LANA City Water Connection Grant, applicants' household income must not exceed 115% Area Median Income (AMI) based on household size. Priority will be given to applicants whose income is at or below 80% AMI. Income will be determined by the adjusted gross income on the most recent Federal Tax Return. If a tax return is not required, income will be determined by the projected gross income for the upcoming 12 months. In 2024, the Area Median household income for a family of four (4) in Anoka County was $124,200. AMI values are revised annually with new amounts typically released mid-April to mid-May. CEE will use the most recent Area Median Income calculations from the Department of Housing and Urban Development (HUD) when determining eligibility. 2 Grant -Eligible Incomes (based on 2024 AMI values) Household 80% AMI Priority Income Size in dollars 115% AMI Qualifyin Income in dollars 1 68,500 100,050 2 78,250 114,300 3 88,050 128,550 4 97,800 142,850 5 105,650 154,350 6 113,450 165,700 7 121,300 184,900 8+ 129,100 196,800 2 Other Eligibility Requirements: Eligible Properties: • 1-4 unit owner -occupied properties located within the geographical boundaries of the City of Andover. Properties held in a Trust, Townhomes, and Condominiums are eligible, subject to Association Bylaws. Properties may be held in a Contract for Deed. Ineligible Properties: • Dwellings with more than 4 units, cooperatives, mobile homes, and non -owner -occupied properties. Eligible Recipients: • All recipients must own and occupy the property. Ineligible Recipients: • Including but not limited to: o Businesses o Non -Occupant Co -Borrowers o Non -Legal Residents of the United States Credit Requirements: • All real estate taxes must be current. Bids: • Only one estimate is required. All contractors must be properly licensed or registered. 3 EXHIBIT A ANDOVER PROGRAM GUIDELINES The CITY OF ANDOVER is making funds available for homeowners to assist with home improvements and energy improvements. Center for Energy and Environment shall serve as the administrator for the Andover Grant Program. Eligible Project Expenses: • Connection to City Water • Plumbing Modifications to Facilitate Connection to City Water • Payment of City Fees Including Cost of Water Meter and Accessories • Property Restoration • Proper Abandonment of Private Well Ineligible Project Expenses: • Any project not listed as an Eligible Project Expense • Payment for work initiated prior to the grant being approved and closed, unless due to emergency. • Homeowner labor or other in-kind contributions to the project. Grant Amount: Up to $33,000 *Only one Grant per property Eligible Properties: 1-4 unit owner -occupied properties located within the geographical boundaries of the City of Andover. Properties held in a Trust, Townhomes and Condominiums are eligible, subject to Association Bylaws. Properties may be held in a Contract for Deed. Ineligible Properties: Dwellings with more than 4 units, cooperatives, mobile homes and non -owner occupied properties. Eligible Recipients: All recipients must own and occupy the property. Ineligible Recipients: Including but not limited to: - Businesses, Non -Occupant Co -Borrowers and non- legal residents of the United States. Income Limit: The property owner's household income shall not exceed 115% AMI based on family size. Income will be determined by the adjusted gross income on the most recent Federal Tax Return. If a tax return is not required, income will be determined by the projected gross income for the upcoming 12 months. Exhibit A Page 1 Credit Requirements: 1) All real estate taxes must be current. Bids: Only one estimate is required. Allcontractors must be properly licensed or registered. Sweat Equity / Homeowner Labor: Work may be performed by property owners on a "sweat equity" basis, but only the purchase of materials and rental of tools or equipment will be considered an Eligible Project Expense. Recipient Paid Fees: No closing costs. It is the recipient's responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original amount, the recipient must obtain the additional funds and provide verification of the additional funds in order to proceed. Deadline for Work Completion: All work must be completed within 120 days of the grant closing. Extensions may be granted by CEE due to weather or similar factors. General Program Conditions Application Processing: Grants will be distributed on a first come, first served basis as recipients qualify. Applicants must provide a completed application package including the following in order to be considered for funding. ➢ Completed and signed application form ➢ Proof of income ➢ Proof of Identity (driver's license, passport, etc.) ➢ Bids or estimates for proposed projects ➢ Other miscellaneous documents that maybe required. Program Costs: Grant origination fees, annual administrative fees, and one-time program setup fees will be paid separately from the Program Budget. Program marketing efforts will be billed directly to the City of Andover and is a separate expense should the city choose to commission CEE for marketing support. Total Project Cost: It is the recipient's responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original amount, the recipient must obtain the additional funds and provide verification of the additional funds in order to proceed. Disbursement Process: Grant: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector; • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; • Evidence of city permit(s) obtained and post -installation inspection approval by city. Exhibit A Page 2 EXHIBIT B Andover Program Budget Andover Grant Budget Allocation (Annual Administration, Origination Fee and One Time Program Set -Up Fee are NOT included in the Total Program Budget*): $98,152.49 TOTAL PROGRAM BUDGET: $98,152.49 Budget Notes: 1. CEE shall submit monthly invoices for grants, origination fees and post -installation inspections for that period. 2. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (1) Annual Administration Fee $2,500 (due January 1st of each year the contract is Active**) (2) Origination Fee: Grant $600 per grant closed (3) One Time Program Set -Up Fee $1,500 *Admin Fees are paid separately by the City of Andover and not a part of the Total Program Budget **Annual Administration Fee shall be pro -rated in the first year of the contract. Assuming a March V start date, the pro -rated fee would be $1,875 for the first year. 3. Marketing Marketing efforts outside of CEE's website and grant information are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all additional program marketing. CEE will also be reimbursed by the City of Andover for any non -labor, out-of-pocket expenses relating to these services on a dollar -for -dollar basis. Exhibit B EXHIBIT C HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT This HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT ("Agreement"), dated this day of 20 , is made by and between the Andover Economic Development Authority, a body corporate and politic under the laws of Minnesota, with offices at 1685 Crosstown Blvd NW ("Autho(ty"), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 ("CEE"). RECITALS A. The Authority has a need for certain professional services and desires to retain CEE to provide said services, all subject to the terms and conditions contained in this Agreement. CEE is qualified to provide the desired professional services and desires to provide said services for the Authority, all subject to the terms and conditions contained in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this Agreement, the parties agree as follows: 1. Services/Scope of Work 1.1 CEE shall in conjunction with the Authority develop and deliver City of Andover LAHA City Water Connection Grant Program (hereinafter the "Program") and more fully described in Exhibit A attached hereto. All activities delivered under the Program shall be coordinated with the Authority's designated Executive Director or their designee. 1.2 CEE shall assist the Authority staff in marketing the Program. This will include being on the CEE website and creating an information sheet about the loan program. 1.3 The funding source is exclusively from the Authority. 2. Compensation 2.1 The Authority shall compensate CEE for services provided under this agreement according to the schedule in Exhibit B attached hereto. The Authority shall compensate CEE only for services completed. 2.2 Upon request, CEE will provide additional marketing services. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to marketing. CEE will be reimbursed by the Authority for any non -labor, out-of-pocket expenses, relating to these services on a dollar -for -dollar basis with no mark-up. CONTRACT between CITY OF ANDOVER and CENTER FOR ENERGY AND ENVIRONMENT CEE # Page 1 2.3 CEE shall invoice the Authority not more than two times each month. The Authority shall pay CEE within 45 days of receipt of the invoice. 3. CLIENT's Obligations 3.1 If requested by CEE, the Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain information and or permission for access from clients which may be necessary for CEE to provide the services under this Agreement. 3.3 The Authority shall provide sufficient funding to fund eligible Authority funded loans. The Authority shall determine the amount of funds allocated to the Program. 3.4 The Authority shall establish eligibility for the Program and shall provide these criteria in writing to CEE prior to commencement of any marketing efforts. 3.5 The Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 4. CEE's Obligations 4.1 CEE shall use its best efforts to provide services under this Agreement in a professional manner consistent with the care and skill used by reputable members of CEE's profession. 4.2 CEE, and all of its employees or agents, shall comply with all statutes, ordinances, rules, regulations and other laws applicable to the provision of services under this Agreement. 4.3 CEE shall secure all permits and licenses required for performance of the services under this Agreement. 4.4 CEE shall not engage in discriminatory employment practices against any employee or applicant for employment and shall in all respects comply with all federal, state and local laws, regulations and orders, including without limitation, Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure to comply with the provisions hereof shall be deemed a material default under this Agreement. 5. Term and Termination CONTRACT between CITY OF ANDOVER and CENTER FOR ENERGY AND ENVIRONMENT CEE # Page 2 6. 7 A 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on March 1, 2025and continue through December 31, 2025. 5.2 This Agreement may be terminated by either party, for any reason or no reason, immediately upon written notice to the other party. In the event this Agreement is terminated by CEE prior to the expiration of the term set forth in paragraph 5.1, the Authority shall compensate CEE for all services delivered up the date of termination and CEE shall provide the Authority with such information as the Authority may request regarding the status of the Program. 5.3 Any termination of this Agreement shall not release either party from their respective obligations under sections 7 and 8 of this Agreement. Insurance 6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the amounts listed below: General Liability $2,000,000 Automobile Liability $1,000,000 Excess Liability $1,000,000 Workers Compensation Liability and Indemnification Aggregate Limit Combined Single Limit Aggregate Limit Statutory Limit 7.1 CEE represents that the services to be provided under this Agreement are reasonable in scope and that CEE has the experience and ability to provide the services. 7.2 CEE warrants that any services provided hereunder shall be done in a professional and workmanlike manner. 7.3 CEE shall indemnify, defend and hold harmless Authority and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys' fees and damages for death, personal injury and property damage) which Authority may incur as a result of any act or omission by CEE in providing services under this Agreement. 7.4 Authority shall indemnify, defend and hold harmless CEE and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys' fees and damages for death, personal injury and property damage) which CEE may incur as a result of any act or omission by Authority in discharging its duties under this Agreement. Confidentiality Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and not disclose to any third party any information obtained regarding the Authority CONTRACT between CITY OF ANDOVER and CENTER FOR ENERGY AND ENVIRONMENT CEE # Page 3 and/or any of Authority's clients for which CEE is providing services; provided, however, that this obligation to maintain confidentiality shall not apply to: a) Information in the public domain at the time of disclosure; b) Information which becomes part of the public domain after disclosure through no fault of CEE; or c) Information which CEE can demonstrate was known by it prior to the date of this Agreement. Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client information covered by this paragraph to governmental authorities to the extent CEE reasonably believes it has a legal obligation to make such disclosures and to the extent CEE reasonably deems to be necessary; provided, however, that if CEE believes that any such disclosure is required by law, it shall provide advance notice to the Authority to provide the Authority with a reasonable opportunity to attempt to obtain an injunction or other protective order preventing such disclosure. 9. Relationship of Parties CEE will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents, shall be considered employees of the Authority for any purpose, and neither shall CEE be eligible for any compensation or benefits which the Authority may provide to its employees from time to time. CEE shall be solely responsible for all employment and other taxes applicable to providing services hereunder, and the Authority will not withhold any taxes or contributions from the compensation payable to CEE under this Agreement. 10. Notices All notices, requests, demands and other communications required to be given in writing under this Agreement shall be given to the other party in person or by mail as provided in this section. If delivered personally, notice shall be deemed to have been duly given on the date of delivery. If delivered by mail, such notice shall be sent via first class U.S. mail, postage prepaid, to the address set forth at the beginning of this Agreement or such other address as a party may otherwise request by written notice, and notice shall be deemed duly given three (3) business days after mailing. 11. Assignment This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided, however, that neither party shall assign or transfer in any manner, this Agreement or any portion hereof without the prior written consent of the other party, and any attempt to assign or transfer without prior written consent shall be void and of no effect. 12. Governing Law CONTRACT between CITY OF ANDOVER and CENTER FOR ENERGY AND ENVIRONMENT CEE # Page 4 This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 13. Miscellaneous 13.1 Headings and captions used in this Agreement are for convenience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the entire agreement of the parties and supersedes all prior agreements, discussions and representations, written or oral, concerning the subject matter hereof. 13.3 No waiver by the Authority of any term or condition of this Agreement or any document referred to herein shall, whether by conduct or otherwise, be construed as a waiver or release of any other term or condition of this Agreement. 13.4 This Agreement may only be amended in a written agreement signed by both parties. 13.5 Except as expressly set forth in section 7, the rights and benefits under this Agreement shall inure solely to the benefit of the Authority and CEE, and this Agreement shall not be construed to give any rights, benefits or causes of action to any third party. 13.6 The invalidity or partial invalidity of any provision of this Agreement shall not invalidate the remaining provisions, and the remainder shall be construed as of the invalidated portion shall have never been a part of this Agreement. 13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13 (Government Data Practices) that are applicable to the Authority and shall not disseminate any information concerning loan requests of the borrowers without the prior written approval of the Authority. 13.8 This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. CONTRACT between CITY OF ANDOVER and CENTER FOR ENERGY AND ENVIRONMENT CEE # Page 5 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY By: Jamie Barthel Date: CENTER FOR ENERGY & ENVIRONMENT Stephanie Haddad Date: Its: President Its: Chief Operation Officer Tax ID # 41-1647799 CONTRACT between CITY OF ANDOVER and CENTER FOR ENERGY AND ENVIRONMENT CEE # Page 6 EXHIBIT D PARTICIPATION AGREEMENT Property Owner(s): Property Address: Total Project Cost: $ LAHA City Water Connection Grant Amount: Date: (herein referred to as "owner") (herein referred to as "property") (herein referred to as "grant") The owner will receive a grant as specified above, pending owners' compliance with the guidelines of the program as described in related informational material, this Agreement, and the program application. 1. The owner certifies that he/she/they is/are the owner(s) of the recorded.property where the funds will be used to finance repairs and/or improvements. 2. The owner certifies that he/she/they are current on mortgage payments and have no unpaid taxes. 3. Work performed at the property shall be as stated in the contractor(s) bid(s) and/or material list for sweat equity projects. 4. Any work performed by a contractor must meet City of Andover licensing, building permit and building/housing code requirements. 5. All projects must be completed and payment request documents provided to CEE within 120 days from the date indicated above. 6. The grant funds will be held in escrow until completion of the work. The grant funds will be disbursed to the owner/contractor based upon final inspection of ALL completed work. The owner must submit the following items to CEE upon completion of the work. If more than one contractor is used, there must be completed sets of the items listed below for each contract/contractor: a) A completion certificate (copies provided to owner) filled in and signed by the owner and contractor; b) A final invoice from the contractor showing the total cost for the project AND/OR for projects being done by the owner, detailed receipts from building materials supplier(s). c) For work requiring a city permit, proof of final inspection by the City of Andover Building Department. (This may be done by sending a copy of the permit signed off by the responsible City Inspector, verify permit has been closed on the city website or by having the responsible City Inspector call CEE) d) For work NOT requiring a city permit, the owner must notify CEE upon completion of the work. A CEE representative will contact the owner to arrange an inspection of the property to verify the completion of the work. CEE / Grant_ Participation_ Agreement / 07118 PARTICIPATION AGREEMENT e) an ORIGINAL lien waiver provided by the contractor(s) to the owner indicating full payment for all work completed. CEE will provide payment to the contractor(s) and/or owner within 30 days of the receipt of all the above items. CEE will mail the check(s) or hold for pick-up based upon request of the owner/contractor(s). The owner must notify any contractor(s) of the payment process as outlined above. The owner agrees to release and hold harmless the City of Andover, the Andover Economic Development Authority, and the Center for Energy and Environment, together with their officers and employees, from and against any and all claims, demands, injuries, damages, cost and expenses, including reasonable attorney's fees, arising out of or relating to the use or financing of the property, limited only to the extent that the liability or loss is attributable to the gross negligence or intentional misconduct of one or more of he released parties. OWNER: SUBJECT PROPERTY ADDRESS: OWNER: CEE / Grant_ Participation_ Agreement / 02/18 OF k CITY ND . QnHtd- 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners U CC: Sarah Cotton, Executive Director FROM: Peter Hellegers, City Planner SUBJECT: Placer.ai Discussion DATE: January 21, 2025 INTRODUCTION Staff has been contacted by Placer.ai about the City/EDA potentially using the software for economic development purposes. Placer is a location intelligence & foot traffic data software. DISCUSSION Placer.ai advertises its software as a way for municipalities to gather more advanced information about their location for economic development such as business attraction or retention. Examples provided via the Placer.ai website show it as a potential way to attract retail businesses by understanding area consumer behavior, preferences and shopping patterns and also to analyze retail leakage to adjacent cities. Placer.ai also notes it is a way to maximize the EDA's economic development marketing return on investment and provides a means to track other items of public interest such as park and open space usage data and demographic information about those who utilize the parks. Finally, Placer.ai notes that it improves forecasting sales tax revenue potential which can be helpful to municipal budgeting. Case studies for public entities available from the Placer.ai website include providing better attendance data to increase funding for a holiday lighting event and using trade area and visitor demographics to get funding for revitalization of a public gathering space. Andover does haver retail areas, but retail makes up only a small portion of the City's overall land area. Additionally, few of these retail areas have remaining developable or subdividable parcels. In addition, Andover has much larger retail areas in close proximity to its corporate boundary, such as Coon Rapids and Blaine. ACTION REQUESTED Provide staff with direction on whether or not to pursue Placer.ai software. If this is something you would like staff to pursue would ask them for a presentation to the EDA. Respectfully submitted, Peter Hellegers City Planner 0 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners CC: Sarah Cotton, City Administrator aqo FROM: Peter Hellegers, City Planner P� SUBJECT: Review Commercial Project Activity DATE: January 21, 2025 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCIAL PROJECTS • Clock Tower Commons — Permits have been issued for Starbucks and Chipotle and construction is taking place. Construction of the Chipotle has moved on to some interior work while framing of the Starbucks has just begun. In addition, a building permit has been issued for a bakery that would occupy the former White Rabbit Kitchen location near the interior corner of the shopping center. • 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) — The site has received their certificate of occupancy, and this project is now complete. • Restaurants/Fast Food — Currently staff are aware of companies continuing to look for land to locate in Andover. • "TCF" Site — The City Council approved an amended Conditional Use Permit for a drive-thru for Chase Bank to locate on the site. The Commercial Site Plan has been approved and building plans have been submitted. • Andover Crossings — Circle K/Holiday continues to work through their CSP for the site. A Preliminary Plat, Amended PUD, and Conditional Use Permit for the gas station were approved by the City Council in late November of 2024. In addition to the CSP, the property also needs a Final Plat and building permit • 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 has provided their next submittal to the City of Andover for review. They are planning on obtaining their building permit in April 2025. • Finnes Estates — The Park and Recreation Commission reviewed a sketch plan for a 32 -lot single family subdivision located SW of the intersection of Crosstown Boulevard NW and Prairie Road. • Lakeview at Sloth Farm — City Council reviewed a sketch plan for a 7 -lot subdivision located at the former "Sloth Nursery" site. 13624 Gladiola St NW. 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 the City had 140 new housing starts. In 2022, another 103 new home permits were issued plus 1 apartment (150 units), and an assisted living facility (32 units). In 2023, the City issued 64 new home permits issued., and another 101 more home permits in 2024. Thus far in 2025, the City has issued 8 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 received switch gear they had been waiting on. Connexus needs to make the final connection now. • Grace Lutheran Church — A Conditional Use Permit was granted in 2024. Most of the exterior parts of the remodel have been completed except for the screening of the HVAC units and some work for the dumpster enclosure. • Bunker Hills Park — Anoka County Parks is replacing two pavilions within the park. • Walmart — Walmart has submitted their addition permit to their building to facilitate their online order pickups. Staff have completed the CSP review and building plans have been submitted for permitting. • 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. • Jay Street - City Staff have received some interest in the development of the vacant property south of Jay Street and staff will be present to discuss.