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HomeMy WebLinkAboutSP January 29, 1996 ¥\ pP.....O\l€O ~)~C:>lq~ CITY of ANDOVER 1685 CROSSTOWN BOULEVARD NW. . ANDOVER. MINNESOTA 55304. (612) 755-5100 SPECIAL CITY COUNCIL MEETING - JANUARY 29, 1996 MINUTES A Special Meeting of the Andover City Council was called to order by Mayor Jack McKelvey on January 29, 1996, 7:05 p.m., at Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Councilmembers present: Jacobson, Knight Councilmembers absent: Dehn, Kunza Also present: City Finance Director, Jean McGann City Administrator, Richard Fursman TIF FUND UPDATE Ms. McGann reviewed the report on the TIF fund, noting the anticipated revenue and committed funds. It is anticipated that there will be about $1.6 million carried into 1997. This projection includes the assumption that a $2 million bond will be let and that the committed project expenditures plus the lighting of the ball field and parking lot at the Field of Dreams complex are paid. An additional $2 million bond is all that the TIF District would support at the present time. If development changes, additional bonding would be available. Also, if Anoka Auto Wrecking is not purchased and the lights in the Field of Dreams is not done, there would be no need for the bond. Mr. Fursman explained the agreement made with Andover Limited Partnership. Out of the $900,000 the City offered to help fund the Downtown Center, it still owes $118,462. Ms. McGann explained the land acquisitions noted under expenditures is the amount budgeted to acquire all of the salvage yard properties, including Anoka Auto Wrecking. Councilmember Jacobson questioned whether the City wants to acquire every salvage yard or does it want one or two to remain in the City. Mayor McKelvey noted he has talked with the owners of Anoka Auto Wrecking, who are leaning toward constructing a building to do all work indoors. That would open up acreage for other development and would make the area more aesthetically pleasing for other businesses to come in. He'd like to negotiate something with Anoka Auto Wrecking so their operations would be conducted indoors and the land now used to store junk cars made available for development. Mr. Fursman stated the $1.7 million estimated for road improvements is for Commercial Boulevard and the service road, though there will be other roads within the system. There may also be other sources of revenue to pay for the roads, such as MSA funds. Ms. McGann also went over the report of the revenue and expenditures of the TIF Districts as of December 31, 1995. Total revenue was $7,397,266.55; total expenditures $5,188,251. 68. The expenditures are low because the sal vage yards have not yet been purchased. Mr. Fursman then updated the Council on the status of the negotiations on several properties in the commercial area. Special Andover City Council Meeting Minutes - January 29, 1996 Page 2 (TIF Fund Update, Con tinuedJ Mr. Fursman stated the City has paid about the same price per square foot for the properties it has purchased. The big difference in cost is relocating businesses. He thought it may be necessary to begin condemnation proceedings on the Mistelski building on the corner of Jay Street and Bunker Lake Boulevard, as the service road along Bunker Lake Boulevard is proposed to go through the center of it. Ms. McGann projected the TIF Districts will be generating about $200,000 per year, which will increase as the businesses are developed. Mr. Fursman did not feel comfortable obligating any more expenditures from the TIF fund until there is more development and the fund is built up more. Mayor McKelvey didn't think there would be a problem with development, as he has been already approached by many businesses who are interested in establishing in Andover. Councilmember Jacobson wondered if the City should look at the price at which it sells the land in the commercial park. It the cost reasonable compared to what other cities are doing? Mr. Fursman noted many other cities give the land away, considering it an investment. What is more important is the type of businesses that buy the land. Councilmember Jacobson thought one option to consider would be to have the EDA construct a building and rent out the facilities. Mr. Fursman stated in that case the City forgoes the taxes but will have an eternal revenue stream. Councilmember Knight suggested the City consider a senior citizen center in the commercial area. Another consideration would be to look at a specialized type of industry such as medical businesses. Discussion continued on speculated use of the tax forfeit property just south of the landfill ; on possible development scenarios on the northwest corner of Bunker Lake and Hanson Boulevards; that Anoka Auto Wrecking would probably not be purchased in 1996 if at all; that a comfortable carry over in the fund each year would be at least $1 million; that it is projected there will be excess funds for projects outside of the commercial area in the years 1997 and 1998; that it may be best to postpone any commitment of funds outside of the commercial area for the trail system, lighting at the Field of Dreams, a structure for Public Works, etc., until then; and on the various needs of the City including the renovations on the City Hall building, expansion of the Public Works facility, the grant for the trail system and establishing a development fund. The Council asked Staff to identify the needs, prioritize them, provide estimated costs and determine when and from which source each could be funded. Possible sources of funding would also include the PIR fund and the Piper Fund, as well as the TIF fund. MOTION by Jacobson, Seconded by Knight, to adjourn. Motion carried on a 3-Yes, 2-Absent (Dehn, Kunza) vote. The meeting adjourned at 8:00 p.m. 1rL~~ Mar la A. Peach, ~ec ding Secretary .- - --. -