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Home My WebLink AboutSP March 10, 1994 ~ CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - MARCH 10, 1994 1. Call to Order - 7:00 P.M. 2. Wasteco Site Option Agreement Discussion 3. 4. Adjournment 0 -- ...._~- .. _00-_ - --- -----. ~ CITY of ANDOVER SPECIAL CITY COUNCIL MEETING - MARCH 10, 1994 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on March 10, 1994, 7:05 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Jacobson, Knight, Perry Councilmember absent: Dalien Also present: City Attorney William G. Hawkins Ca.~rly (II.'"'''' ~ss""otð.-¡:\"'- ~rr;~gs~cà, InG~, Jim Casserly ¡\..~...d~J. '-I{s/'i'-l AEDC Commissioner, Bob Nowak City Planner, Dave Carlberg dii-y .fi",,~< Oir...ctQI" Oo..l"tl Sa..l;-'..J:~r WASTECO SITE OPTION AGREEMENT DISCUSSION Mr. Carlberg reported he receive no requests for proposals from developers because of the short time frame to respond. Several developers have expressed an interest in developing a commercial park on the Wasteco site, and the suggestion has been that the Council meet with several developers prior to requesting proposals. Attorney Hawkins stated the Attorney for the property owner of the Wasteco site has verbally agreed to a 30-day extension on the City's option to purchase the site. He has forwarded the paperwork for that extension. The City now has until April 29, 1994, in which to make a decision to purchase the property. Councilmember Jacobson had two concerns about purchasing the property. First, the City must make sure the property is environmentally cleared by the PCA and other regulating agencies. Second, the property must be free and clear or any liens and encumbrances encountered by the property owner. Attorney Hawkins stated the City would be provided with title insurance to take care of any items there may be against the property. The taxes will have been paid out of the profits. The survey is in the process of being completed, and the exact purchase price is dependent upon the acreage that is determined from that survey. The City would be acquiring more than 110 gross acres. The toe of the landfill is included in the legal description. That toe does not contain debris from the landfill but is just the extension of the cap on the landfill. Mr. Hawkins thought the toe area may not be a problem for the City, and that the City would not want to leave that strip of land there. He also noted a letter he received from an attorney representing the WDE group. That letter was to put the City on notice that at the time Mr. Roth entered into the agreement on the landfill site, he agreed not to sue anyone and that he would deliver the proceeds from the sale of the property to the WDE group. It was Mr. Hawkins' opinion that the amount per acre to purchase this property is very reasonable when compared to the sale of property in the surrounding areas. The question is if the land is suitable for development and whether the City can find someone to assist in developing it. TY\~~OA-~ ~.... 4/-;J'fS - _.._-~------- --- - --~ ---. Special Andover City Council Meeting Minutes - March 10, 1994 Page 2 (Wasteco Site Option Agreement Discussion, Continued) Attorney Hawkins also noted that the City Council has the option to establish an Economic Development Authority. If it does, the deed would go to that Authority. Mr. Casserly explained an EDA can be established by the City Council to oversee economic development in the City. He outlined the advantages of an EDA, comparing its functions and operations to the Housing Redevelopment Authority which the City has already established. An EDA is a separate legal entity that then assumes responsibility for economic development, and the City Council acts as the Authority Board in most cities. The Authority takes no power away from the City, but provides more ability to develop the property. The EDA has more powers than the City does when it comes to mortgage agreements, leasing arrangements, partnerships, budgeting, bonding, etc. Mr. Hawkins advised the liability factor for the members of the EDA is not any different than the position of Councilmembers. The Authority simply provides more flexibility in developing. Mr. Hawkins stated if the Council wishes to establish an EDA, that should be done before exercising the option on the Wasteco property. The City does not want to be in the chain of title on that property. Mr. Carlberg explained the public hearing to establish an EDA could be held on April 5, 1994. Discussion turned to contracting with developers to develop the Wasteco site. Mr. Casserly suggested the City will want to enter into a development agreement with the firm that will develop the Wasteco property, noting threshold requirements, performance deadlines, etc. The advantage for the EDA to hold the property is to have control over it and its development. He also suggested the Council have several firms make a presentation as to their suggestions for developing the property. With that information, the Council will have a better idea of what they would like to see done and how to get it done. In discussing the Tax Increment Financing budget, Attorney Hawkins noted the funds are available to pay for the bonding to acquire this property. The analysis done last year by Mr. Casserly was very conservative. Even after setting aside for the debt service on Commercial Boulevard, there is about $5 million in terms of revenue being generated on existing tax increment districts to service bonds. The taxing district expires in the year 2012. Mr. Casserly stated they are not sure if the City should create a tax increment district with the Wasteco parcel. The suggestion has been to use the funds from the other tax increment districts to help support this project area. After further discussion, the Council was leaning toward leaving the Wasteco property as a project area since there are sufficient funds to support it. It was expressed that the some of the remaining TIF funds be used in the project area south of Bunker Lake Boulevard. The matter of the proposed Anoka Electric construction project was raised, as some thought AEC is having a problem acquiring the property in the City of Ramsey. Councilmember Jacobson agreed to get more information on AEC's plans and to let them know Andover is proceeding on ... - -,----- ..- . " Special Andover City Council Meeting Minutes - March 10, 1994 Page 3 (Wasteco Site Option Agreement Discussion, Continued) the acquisition of this site. He noted, however, that having AEC as a tenant would mean low-density development since they want to have all of their warehousing facilities in the same area. Mayor McKelvey understood Anoka Auto Parts will construct a berm around its business and plant trees some time in April. Once they are allowed to construct their building, they estimate the amount of acreage needed for outside storage can be reduced by ten acres. Councilmember Knight pointed out the sight of the junkyard may be a deterrent to the development of the Wasteco site, and the City may want to consider using TIF funds to enhance the line of site from the commercial area. Councilmember Jacobson suggested the possibility of running a road between the junkyard and the commercial area as a buffer. At this point the Council confirmed its desire to establish an Economic Development Authority. MOTION by Jacobson, Seconded by Knight, that the City authorize the development of an Economic Development Authority, and that the Attorney and Staff be authorized to draw up the necessary documents to establish an EDA, and that this be accomplished prior to the purchase of the Wasteco property. The intent would be to make the members of the Council the EDA Board. Motion carried on a 4-Yes, I-Absent (Dalien) vote. a.1'Y\"",¡..d 'i/'('I'1 Mr. Carlberg stated the~y has hired a firm to do the environmental studies on the Wasteco ~'te, and those results should be available soon, hopefully for the March Council meeting. After some discussion, the Council agreed to wait until those environmental results are available before making a final decision to purchase the Wasteco property. It was recognized that any development of that area would probably be a 1995 project. Councilmember Jacobson wanted to see a letter from the PCA that the property is clear of environmental effects. Others didn't feel the PCA would put that in writing, but they may provide a clearance on what has been discovered as a part of the work plan. Mr. Carlberg was asked to invite the developers to make a presentation to the Council on the development of the Wasteco property and to propose several dates for that meeting. The Council also felt the residents should be given an opportunity to express their opinion on the establishment of an EDA and on the proposed commercial development for the Wasteco property. It was agreed to provide the information to the residents via cable TV and the Anoka union of the proposals made tonight to establish an EDA and to develop the Wasteco property. Input from the residents will be welcomed during the agenda item to establish the EDA on April 5. The Council asked about the implications for staffing with the establishment of an EDA and the development of the commercial park. Mr. Carlberg felt that contracting with a development firm is the best procedure and will impact staffing the least. .... _~_~~____·_4_·"· - -- - ----... ..--- .-_.-.-- .. ..- Special Andover City Council Meeting Minutes - March 10, 1994 Page 4 MOTION by Jacobson, Seconded by Perry, to adjourn. Motion carried on a 4-Yes, I-Absent (Dalien) vote. The meeting adjourned at 8:32 p.m. Respectfully submitted, ~~:k~L Recording Secretary Lo___ ____~_ ____._~_~_ ~~ -