HomeMy WebLinkAboutEDA December 5, 2006
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
December 5, 2006
6:00 p.m.
Conference Rooms A & B
AGENDA
1. Call to Order - 6:00 p.m.
2. Approval of Minutes (11/21/06 Regular Mtg.)
3. Update on Economic Development Activities
4. Approve Community Center Refinancing
5. Other Business
6. Adjourn
.....
@
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
Economic Development Authority --
Jim Dickinson, Executive Director~
Vicki V olk, City Clerk <J
CC:
FROM:
SUBJECT:
Approval of Minutes
DATE:
December 5, 2005
INTRODUCTION
The following minutes were provided by TimeSaver Secretarial for approval by the EDA:
November 21,2006
Regular Meeting (Twistol absent)
DISCUSSION
. Attached are copies of the minutes for your review.
ACTION REOUlRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
tl:L. d~
Vicki V olk
City Clerk
-
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
NOVEMBER 21, 2006 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by President Mike
Gamache, November 21, 2006, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present:
Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie
Trude; Voting resident member Robert Nowak
Voting resident member Joyce Twistol and Edward Schultz
(Advisor to the EDA)
Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
City Engineer, Dave Berkowitz (6:40)
Others
Absent:
Also present:
APPROVAL OF MINUTES
November 8, 2006: Correct as written.
MOTION by Jacobson, Seconded by Trude, approval of the Minutes as written. Motion carried
unanimously.
APPROVE COMMUNITY CENTER REFINANCING
Executive Director Dickinson explained activity in the current bond market is indicating that
there is an opportunity for the EDA to save some significant long term debt service expense by
refinancing the EDA's $19,640,000 Public Facility Lease Revenue Bonds, Series 2004.
Mr. Dickinson made a presentation to the Authority.
Commissioner Jacobson asked what the amount of savings would be for both of these. Mr.
Dickinson stated they are saving $755,979 in long term debt service costs with the first bond and
he was anticipating they will be able to hit $300,000 fairly easily on the next one but more than
likely it will be closer to $400,000 for the second.
Motion by Jacobson, Seconded by Orttel, approval of the attached Resolution authorizing the
issuance of $10,000,000 Public Facility Lease Revenue Refunding Bonds, Series 2006 (City of
Andover Community Center) and the execution and delivery of a lease agreement, mortgage and
security agreement and indenture of trust and an escrow agreement in connection therewith. Motion
Andover Economic Development Authority Meeting
Minutes - November 21, 2006
Page 2
carried unanimously. (RES. R003-06)
Commissioner Orttel stated he appreciated the hard work Mr. Dickinson has done on this.
AMENDMENT TO BRUGGEMAN PURCHASE AGREEMENT - CONTINUED
Community Development Director Neumeister explained at the previous EDA meeting the EDA
agreed with the request from Bruggeman Properties to amend the purchase agreement related to
the land that was exchanged with Brad Povlitzki.
Commissioner Jacobson stated he did not have a problem doing this but they still do not have a
definition of what they have per lot. He wondered if the definition in section five is a good
enough one for what they are doing. Commissioner Trude thought this fit the plat.
Motion by Knight, seconded by Jacobson, to approve the amendment to the purchase agreement
with Bruggeman Properties. Motion carried unanimously.
2007 EDA BUDGET REVIEW
Executive Director Dickinson stated the EDA is requested to receive a brief presentation on the
2007 EDA Special Revenue Budget and a presentation on budgets impacted by EDA decisions.
Mr. Dickinson made a presentation of the proposed budget to the Commission.
Commissioner Knight asked if the State has any recommended cushion. Mr. Dickinson stated
within the special revenue funds they do not. They have more of a concern with a large
undesignated fund balance, which they do not have.
Commissioner Jacobson wondered how much money they have in TIF funds to work with. Mr.
Dickinson stated at the end of the year they will be at approximately $2.5 million.
Commissioner Jacobson wondered what they will do with that money. Mr. Dickinson stated they
will need to reserve some of it for some of the project costs that were incurred on Andover
Station North and they need to reserve some of it because one of the 4istricts comes off earlier
than the other so they will be able to cover their long term debt service costs. At that point, if
everything is covered and land sales come in, they can do another project or reserve enough
money to decertifY the district sooner and to pay off the bonds early.
Commissioner Trude wondered if they want to look at some of the older strip mall areas for
improvements. Mr. Dickinson stated it may be outside of the development district and they have
to make sure they also fit within the Tax Increment District Budget.
-
Andover Economic Development Authority Meeting
Minutes-November 21,2006
Page 3
Commissioner Orttel stated the second line item on page four ''tax increment administration" is
over what was estimated. He wondered who gets that amount. Mr. Dickinson stated the EDA
uses this money for staff time and associated budget expenses.
Commissioner Trude stated she would like to make sure they have all the sidewalks and trails in
place within the district. She thought they should make sure all of the connections are in place
and they all go somewhere.
Commissioner Trude stated another item not in the information is the identification signs.
Mr. Nowak stated on page nine they are saying there was $276,000 in administration costs and he
wondered what that is. Mr. Dickinson stated this would include engineering and planning for
projects and he could bring forward a breakdown for the EDA.
Motion by Trude, seconded by Knight, to approve the 2007 EDA Special Revenue Fund Budget.
Motion carried unanimously.
APPROVE LMCIT LIABILITY COVERAGE
Executive Director Dickinson stated the League of Minnesota Cities Insurance Trust (LMCIT)
requests that participating EDAs annually decide whether or not to waive the statutory tort
liability limits established by Minnesota Statutes 466.04.
Motion by Jacobson, seconded by Knight, to not waive the monetary limits on tort liability
established by Minnesota Statutes 466.04.
UPDATE ON EDA ACTIVITIES
Community Development Director Neumeister updated the Commission on EDA development
activities in the City of Andover.
Commissioner Knight wondered at what time Jay Street will be open both ways. Mr. Berkowitz
stated that signal is included with the Hanson Boulevard improvements. He stated by fall of
2007, it should be fully open.
OTHER BUSINESS
There was none.
Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting
-
Andover Economic Development Authority Meeting
Minutes ~ November 21, 2006
Page 4
adjourned at 6:52 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary
@
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
CC:
EDAPre,;dontandBnanl ~
Jim Dickinson, Executive Direct ..
Will Neumeister, Community Development Directorud-
TO:
FROM:
SUBJECT:
Update on Economic Development Activities
DATE:
December 5, 2006
INTRODUCTION
This memo is provided as a status update for all the economic development activities related to
Andover Station North that the City staff have recently been engaged in.
DISCUSSION
The following is the update on activities:
Rudnick's Retail Building - Mr. Rudnicki's tenant space for his wife's dance studio is nearly
ready to obtain a Certificate of Occupancy. He is planning a grand opening soon.
Bruggeman Homes - They have pulled one permit for one of the single unit townhomes. They
want to be ready for the spring "Parade of Homes" and they will soon pull a second permit.
Their first closing is scheduled for December lih. The City Attorney continues to try to get the
Attorney General's Office to release the institutional controls so that we can close on the
property with Bruggeman (for the Povlitzki land exchange parcel).
Funeral Home Proposal- They are preparing a commercial site plan. The lot split drawings
(wi boundary and topographic survey) have been forwarded to the client. The lot split was
approved by City Council on November 21 st.
Day Care Proposal - The purchase agreement was prepared and mailed out to Tracy Sonterre for
signature. Nothing has been heard from her in months.
NBI Office Development - They are preparing site plan drawings and continue to market the
office space that they would like to build. .
Town Center Companies - Due Diligence Progress Review - The marketing staff at Northstar
Partners have indicated that they are working with two potential banks and have been calling the
brokers to see if they can get some interest going in an office building.
-
MVP Baseball (John Larkin) -- Nothing new to report. They are still looking at building
approximately a 52,000 square foot structure in the spring of 2007 and are doing their
homework.
EPA Clearance of Institutional Controls - The City Attorney has given the Attorney General's
Office all the proper legal descriptions for the documents. We have been asking if this can all be
done by the end of the year, and the parties involved have indicated it is possible.
Attracting a Restaurant - The staff has received calls from three developers that may be
interested in building a restaurant on the site closest to Bunker Lake Boulevard. The search
continues to be elusive, but some interested retail shopping center developers are looking at the
possibility of building onto the existing retail center (Louis Rudnicki's). We have explained that
they should be considering a sit down restaurant in their proposal ifthey make one.
Attracting other Light Industrial - The staff has been in contact with three different industrial
prospects that are interested building on the light industrial lots located north of Louis Rudnicki's
retail center. As more details become available they will be shared One of the prospects is a
machine shop that currently is located in Ham Lake that needs more space. As you will recall,
last year the EDA discussed this potential use, and the consensus was that it would be acceptable
as a light industrial use in Andover Station North.
ACTION REQUIRED
This is an informational update to the EDA only, no action is needed.
Respectfully submitted,
~
Will Neumeister
2
~
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
EDA President and Commissioners
FROM:
Jim Dickinson, Executive Director
SUBJECT: Approve Community Center Refinancing
DATE:
December 5,2006
INTRODUCTION
Activity in the current bond market is indicating that there is an opportunity for the EDA to
save some significant long term debt service expense by refinancing the EDA's $19,640,000
Public Facility Lease Revenue Bonds, Series 2004.
DISCUSSION
City Staff has been working with an underwriter (Northland Securities), our fiscal advisor
(Ehlers & Associates), and the City's bond counsel (Briggs & Morgan) to refinance the
Community Center Bonds. I will present the results for Ehlers and Northland at the meeting.
The EDA, will be considering a negotiated land sale based on the approved "parameters
resolution" where the EDA Board of Commissioners authorized, the City Administrator, City
of Andover, Minnesota, to execute a Bond Purchase Agreement which will approve the sale
of the Bonds to Northland, provided that the total net savings accomplished by the refunding
is at an amount set by the EDA (minimum $800,000) and the net present value savings as a
percentage of the present value of the refunded debt service of the 2004 Bonds is at an
acceptable percentage (3%).
As discussed at previous EDA & Council meetings the refinancing will be completed with
two separate new issuances to refinance the 2004 bonds. The first sale of $10,000,000 was
conducted on November 15th and yielded a savings of $755,979.44. The second sale of
$6,865,000 was conducted on December 1st and yielded a savings of $517,163.49. Please
refer to the attached documents that outline the December 1 st sale:
Pg3
Pgs 4 -16
- Northland Securities Bond Purchase Agreement
- Ehlers & Associates Report of the Sale of $6,865,000 Refunding Bonds,
Series 2007 Partial Crossover Refunding
- "RESOLUTION AUTHORIZING THE ISSUANCE OF $6,865,000
PUBLIC FACILITY LEASE REVENUE REFUNDING BONDS,
SERIES 2007 (CITY OF ANDOVER COMMUNITY CENTER) AND
THE EXECUTION AND DELIVERY OF A FIRST AMENDMENT TO
LEASE AGREEMENT, A FIRST SUPPLEMENTAL INDENTURE
AND AMENDMENT TO MORTGAGE AND AN ESCROW
AGREEMENT IN CONNECTION THEREWITH"
Pgs 17 - 23
--
The savings on the second sale did push the total savings over the minimums set by the
original parameters resolution. ill the end, the long term debt service savings of the two
issuances totaled $1,272,142.90. This was approximately $150,000 more than previously
estimated.
ACTION REOUESTED
Receive a presentation on the sale and approve the attached resolution:
"RESOLUTION AUTHORIZING THE ISSUANCE OF $6,865,000 PUBLIC
FACILITY LEASE REVENUE REFUNDING BONDS, SERIES 2007 (CITY OF
ANDOVER COMMUNITY CENTER) AND THE EXECUTION AND DELIVERY OF
A FIRST AMENDMENT TO LEASE AGREEMENT, A FIRST SUPPLEMENTAL
INDENTURE AND AMENDMENT TO MORTGAGE AND AN ESCROW
AGREEMENT IN CONNECTION THEREWITH"
Attachments
--
NORTHLAND'SECURITIES
Honorable Economic Development Authority
City of Andover, Minnesota
Dear Economic Development Authority Officials:
We understand that you desire to issue $6,865,000 Public Facility Lease Revenue Refunding Bonds. Accordingly, we
propose as follows:
We agree to purchase $6,865,000 Public Facility Lease Revenue Refunding Bonds, Series 2007 to be dated January 1,
2007, and to mature February 1,2015-2034. We agree to pay for the Bonds $6,802,626.50 and accrued interest to the
date of settlement.
The Bonds are to be payable at U. S. Bank, MiImeapolis, Minnesota, as Trustee. Interest is to be payable on August
I, 2007, and semiannually thereafter. The bonds will have the following interest rates and will mature or be subject
to mandatory redemption on February 1 in the years and amounts as follows:
2015 $225,000 4.00% 2021 $290,000 4.05% 2028 $390,000 4.35%
2016 235,000 4.00 2022 295,000 4.10 2029 400,000 4.35
2017 245,000 4.00 2023 305,000 4.10 2030 420,000 4.25
2018 255,000 4.00 2024 ....... :330,000 . 420 2031 440,000 4.50
....:,::.:,..-.:::
2019 270,000 .4.00 .>2025...... ' 335,000 '<4.20.: ::2032 455,000 4.50
2020 275,000.. . :4.05 . ',:2Q26,:;:: 355,000 ";;4.2Q. :::......2033 . ..480,000 4.50
'':1..,O'P':': 370,000 .....4:3?:.:.. '.:'2034 . .' 495,000 4.50
.... -.' ..... -'
., ..:......:.". . . .
All Bonds will be Book ;En~ and in multiples of $5,000. The average interest rate,is4.3071o/. and the TIC is
4.3628%. . .' . .. . . . .
:. '
Mandatorv . Redemntion: This issue shall have 4 term bonds maturing February I, 2023 (2022 through 2023
maturities), February 1,2026 (2024 through 2026 maturities), February 1,2029 (2027 through 2029), and February 1,
2034 (2031 through 2034 maturities) which will have mandatory redemptions equal to the annual principal due as
stated above.
Olltional Redemntion: Bonds maturing in the years 2015 through 2034, inclusive, are callable at the option of the
Issuer in whole or in part on February 1,2014, or on any date thereafter at a price of par plus accrued interest.
This bid is made for prompt acceptance and subject to the approval of Briggs and Morgan (Bond Counsel) of St. Paul,
Minnesota, as to the legality and regularity of all proceedings taken in the issuance of the Bonds.
The Issuer agrees to pa.y the expenses for registering the Bonds and the fee of Bond Counsel, in furnishing the
necessary proceedings required to authorize the issuance of the Bonds.
Respectfully submitted this 1 st day of December, 2006.
By:
The foregoing proposal was duly accepted by the EconomJ
Minnesota, at~ Q,.m. this 1st day of December, 2006.
By:
Northland Secutities, Inc. 45 South 7th Stteet, Suite 2500, Minneapolis, MN 55402 Ton F... 1_800_851_2920 M.;. 612-851-5900 "'" 612-851-5987
www.northlandsecurities.com
Member NASD and slPe
....
City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Table of Contents
Report
Sources & Uses
Debt Service Schedule
2
Debt Service Comparison
4
Debt Service To Maturity And To Call
5
Pricing Summary
6
Total Refunded Debt Service
7
PROQ~Q~g_~Q!l_S DIS SA VlNGS @ 4.4750422%
8
------------------~-------~---------~---------------
Summary Of Bonds Refunded
9
Refunding Summary
10
SLGS Subscription Forms
11
Crossover Escrow Fund Cashflow
11
06xoverofSer04$19.58 I SINGLE PURPOSE t 1113012006 I 3:06PM
-
City of Andover EllA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Sources & Uses
Dated 01/01/20071 Delivered 01/05/2007
Sources Of Funds
Par AmOWlt of Bonds
Reoffering Premium
Accrued Interest from 01/0112007 to 0110512007
$6,865,000.00
6,276.50
3,244.25
Total Sources
$6,874,520.75
Uses Of Funds
Total Underwriter's DisCOWlt (1.000%)
Costs ofIssuance
Gross Bond insurance Premium ( 40.0 bp)
Deposit ~ Crossover Escrow Fund
ROWlding AmOWlt
68,650.00
45,140.75
49,880.96
6,710,306.87
542.17
Total Uses
$6,874,520.75
06 xover of Ser 04 $19.58 I StNGLEPURPOSE [11130/2006 1 3:06PM
-
City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Debt Service Schedule
Part 1 of2
Date Principal Coupon Interest Total P+I Fiscal Total
01/05/2007
08/0112007 170,323.13 170,323.13
02/01/2008 145,991.25 145;991.25 316,314.38
08/0112008 145,991.25 145,991.25
02/0112009 145,991.25 145,991.25 291,982.50
08/0112009 145,991.25 145,991.25
02/0112010 145,991.25 145,991.25 291,982.50
08/0112010 145,991.25 145,991.25
02/0112011 145,991.25 145,991.25 291,982.50
08/0112011 145,991.25 145,991.25
0210112012 145,991.25 145,991.25 291,982.50
08/0112012 145,991.25 145,991.25
02/0112013 145,991.25 145,991.25 291,982.50
08/01/2013 145,991.25 145,991.25
02/0112014 145,991.25 145,991:25 291,982.50
08/01/2014 145,991.25 145,991.25
02/01/2015 225,000.00 4.000% 145,991.25 370,991.25 516,982.50
08/01/2015 141,491.25 141,491.25
02101/2016 235,000.00 4.000% 141,491.25 376,491.25 517,982.50
08/01/2016 136,791.25 136,791.25
02101/2017 245,000.00 4.000% 136,791.25 381,791.25 518,582.50
08/0112017 131,891.25 131,891.25
02/01/2018 255,000.00 4.000% 131,891.25 386,891.25 518,782.50
08/01/2018 126,791.25 126,791.25
02/01/2019 270,000.00 4.000% 126,791.25 396,791.25 523,582.50
08/01/2019 121,391.25 121,391.25
02/01/2020 275,000.00 4.050% 121,391.25 396,391.25 517,782.50
08/01/2020 115,822.50 115,822.50
02/01/2021 290,000.00 4.050% 115,822.50 405,822.50 521,645.00
08/0112021 109,950.00 109,950.00
02/01/2022 295,000.00 4.100% 109,950.00 404,950.00 514,900.00
08/01/2022 103,902.50 103,902.50
02/01/2023 305,000.00 4.100% 103,902.50 408,902.50 512,805.00
08/0112023 97,650.00 97,650.00
02/01/2024 330,000.00 4.200% 97,650.00 427,650.00 525,300.00
08/01/2024 90,720.00 90,720.00
02/01/2025 335,000.00 4.200% 90,720.00 425,720.00 516,440.00
08/01/2025 83,685.00 83,685.00
02/01/2026 355,000.00 4.200% 83,685.00 438,685.00 522,370.00
08/01/2026 76,230.00 76,230.00
02/01/2027 370,000.00 4.350% 76,230.00 446,230.00 522,460.00
08/0112027 68,182.50 68,182.50
02/01/2028 390,000.00 4.350% 68,182.50 458,182.50 526,365.00
06 XQver of Ser 04 $19.58 I SINGLE PURPOSE I 11130i2006 I 3:06PM
Ehlers & Associates, Inc.
Leaders In PubliC Finance Page 2
C9
-
City of Andover EllA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Debt Service Schedule
Part 2 of 2
Date Principal Coupon Interest Total P+I Fiscal Total
08/01/2028 59,700.00 59,700.00
02101/2029 400,000.00 4.350% 59,700.00 459,700.00 519,400.00
08/0 112029 51,000.00 51,000.00
0210112030 420,000.00 4.250% 51,000.00 471,000.00 522,000.00
08/01/2030 42,075.00 42,075.00
0210112031 440,000.00 4.500% 42,075.00 482,075.00 524,150.00
08/0112031 32,175.00 32,175.00
02/0112032 455,000.00 4.500% 32,175.00 487,175.00 519,350.00
08/01/2032 21,937.50 21,937.50
0210112033 480,000.00 4.500% 21,937.50 501,937.50 523,875.00
08/01/2033 11,137.50 11,137.50
02/0112034 495,000.00 4.500% 11,137.50 506,137.50 517,275.00
Total $6,865,000.00 $5,605,239.38 $12,470,239.38
Yield Statistics
Accrued Interest from 01/01/2007 to 01/0512007
Bond Year Dollars
Average Life
Average Coupon
3,244.25
$130,137.08
18.957 Years
4.3071807%
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AlC)
4.3551098%
4.3628173%
4.3409045%
4.4750422%
IRS Form 8038
Net Interest Cost
W eighted Average Maturity
4.2977821 %
18.948 Years
06 xover of Ser 04 $19.58 I SINGLE PURPOSE [11/3012006 I 3:06PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 3
G)
Iliiiii
City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Debt Service Comparison
Date
02/01/2007
02/01/2008
02101/2009
02/01/2010
02/01/2011
02/01/2012
02/01/2013
02/01/2014
02/01/2015
02/01/2016
02/01/2017
02/01/2018
02/01/2019
02101/2020
02101/2021
02101/2022
02/01/2023
02/01/2024
02/01/2025
02/01/2026
02101/2027
02/01/2028
02/01/2029
02/01/2030
02/01/2031
02/01/2032
02/01/2033
02/01/2034
Total
Total P+I
Const Loan
Pmt
316,314.38
291,982.50
291,982.50
291,982.50
291,982.50
291,982.50
291,982.50
516,982.50
517,982.50
518,582.50
518,782.50
523,582.50
517,782.50
521,645.00
514,900.00
512,805.00
525,300.00
516,440.00
522,370.00
522,460.00
526,365.00
519,400.00
522,000.00
524,150.00
519,350.00
523,875.00
517,275.00
$12,470,23938
(316,314.38)
(291,982.50)
(291,982.50)
(291,982.50)
(291,982.50)
(291.982.50)
(6,991,982.50)
(8,768,20938)
PV Analysis Summary (Net to Net)
~et FV Cashfl.ow Savings
Gross PV Debt Service Savings.....................
Net PV Casbf10w Savings@ 4.475%(AIC)............
Contingency or Rounding Amount...................
Net Present Valne Benefit
Net PV Benefit / $6,700,000 Refunded Principal...
Net PV Benefit / $6,865,000 Refunding Principal..
Net PV Benefit / $5,315,526.13 PV Refunded Debt Service
Average Anona! Cash Flow Savings..................
Refunding Bond Information
Refunding Dated Date
Refunding Delivery Date
06 xover of Sar 04 $19.58 I SINGLE PURPOSE I 1113012006 I 3:06 PM
Existing D/S
373.889.48
345,128.76
345,128.76
345,128.76
345,128.76
345,128.76
7,045,128.76
$9,144,662.04
Net New D/S
(542.17)
373,889.48
345,128.76
345,128.76
345,128.76
345,128.76
345,128.76
345,128.76
516,982.50
517,982.50
518,582.50
518,782.50
523,582.50
517,782.50
521,645.00
514,900.00
512,805.00
525,300.00
516,440.00
522,370.00
522,460.00
526,365.00
519,400.00
522,000.00
524,150.00
519,350.00
523,875.00
517,275.00
$12,846,149.87
Old Net D/S
373,889.48
345,128.76
345,128.76
345,128.76
345,128.76
345,128.76
345,128.76
545,128.76
545,128.76
544,628.76
543,628.76
547,128.76
544,878.76
546,810.00
542,972.50
543,622.50
548,503.76
542,360.00
545,460.00
547,520.00
553,540.00
543,260.00
547,460.00
550,360.00
546,960.00
547,520.00
541,780.00
$13,363,313.36
Savings
542.17
0.00
28,146.26
27,146.26
26,046.26
24,846.26
23,546.26
27,096.26
25,165.00
28,072.50
30,817.50
23,203.76
25,920.00
23,090.00
25,060.00
27,175.00
23,860.00
25,460.00
26,210.00
27,610.00
23,645.00
24,505.00
$517,163,49
517,163.49
250,416.78
250,416.78
542.17
$250,958.95
3.746%
3.656%
4.721%
18,470.12
1/01/2007
1/05/2007
Ehlers & Associates, Inc.
Leaders In PubliC Finance Page 4
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City of Andover EDA
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Debt Service To Maturity And To Call
Refunded Interest to
Date Bonds Call DIS To Call Principal Coupon Interest Refunded DIS
02/01/2008 373,889.48 373,889.48 373,889.48 373,889.48
0210112009 345,128.76 345,128.76 345,128.76 345,128.76
0210112010 345,128.76 345,128.76 345,128.76 345,128.76
0210112011 345,128.76 345,128.76 345,128.76 345,128.76
0210112012 345,128.76 345,128.76 345,128.76 345,128.76
0210112013 345,128.76 345,128.76 345,128.76 345,128.76
02101/2014 6,700,000.00 345,128.76 7,045,128.76 345,128.76 345,128.76
02101/2015 200,000.00 5.000% 345,128.76 545,128.76
02/0112016 210,000.00 5.000% 335,128.76 545,128.76
02/01/2017 220,000.00 5.000% 324,628.76 544,628.76
02/0112018 230,000.00 5.000% 313,628.76 543,628.76
02/01/2019 245,000.00 5.000% 302,128.76 547,128.76
02/0112020 255,000.00 5.125% 289,878.76 544,878.76
02101/2021 270,000.00 5.125% 276,810.00 546,810.00
02/0112022 280,000.00 5.125% 262,972.50 542,972.50
02/0112023 295,000.00 5.125% 248,622.50 543,622.50
02/0112024 315,000.00 5.125% 233,503.76 548,503.76
02/0112025 325,000.00 5.200% 217,360.00 542,360.00
02/0112026 345,000.00 5.200% 200,460.00 545,460.00
02/01/2027 365,000.00 5.200% 182,520.00 547,520.00
02/01/2028 390,000.00 5.200% 163,540.00 553,540.00
02/01/2029 400,000.00 5.200% 143,260.00 543,260.00
02/01/2030 425,000.00 5.200% 122,460.00 547,460.00
02/0112031 450,000.00 5.200% 100,360.00 550,360.00
02101/2032 470,000.00 5.200% 76,960.00 546,960.00
0210112033 495,000.00 5.200% 52,520.00 547,520.00
02101/2034 515,000.00 5.200% 26,780.00 541,780.00
Total $6,700,000.00 $2,444,662.04 $9,144,662.04 $6,700,000.00 $6,663,313.36 $13,363,313.36
Yield Statistics
Average Life 19.236 Years
Weighted Average Maturity (Par Basis) 19.225 Years
Average Coupon 5.1700349%
Refunding Bond Information
Refunding Dated Date 1/0112007
Refunding Delivery Date 1/0512007
Ser04 $19.58m Pub proj R I SINGLE PURPOSE 111/3012006 I 3:06PM
...
City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Pricing Summary
Maturity
02/01/2015
02101/2016
02/01/2017
02/01/2018
02/01/2019
02/01/2020
02101/2021
02101/2023
02/01/2026
02/01/2029
02/01/2030
02/01/2034
Total
Bid Infonnation
Type of Bond
Serial Coupon
Serial Coupon
Serial Coupon
Serial Coupon
Serial Coupon
Serial Coupon
Serial Coupon
Term 1 Coupon
Term 2 Coupon
Term 3 Coupon
Serial Coupon
Term 4 Coupon
Par Amount of Bonds
Reoffering Premium or (Discount)
Gross Production
Total Underwriter's Discount (1.000%)
Bid (99.091%)
Coupon
4.000%
4.000%
4.000%
4.000%
4.000%
4.050%
4.050%
4.100%
4.200%
4.350%
4.250%
4.500%
Accrued Interest from 01/0112007 to 01/05/2007
Total Purchase Price
Bond Year Dollars
Average Life
Average Coupon
Net Interest Cost (NIC)
True Interest Cost (TIC)
Yield
3.800%
3.850%
3.900%
3.950%
4.000%
4.050%
4.080%
4.100%
4.200%
4.320%
4.375%
4.450%
06 xover of Ser 04 $19.58 I SINGLE PURPOSE 111/3012006 I 3:06PM
Maturity
Value
225,000.00
235,000.00
245,000.00
255,000.00
270,000.00
275,000.00
290,000.00
600,000.00
1,020,000.00
1,160,000.00
420,000.00
1,870,000.00
$6,865,000.00
Price
10 1.227%
100.918%
100.610%
100.303%
100.000%
100.000%
99.678%
100.000%
100.000%
100.178%
98.192%
100.297%
c
c
c
c
Dollar Price
227,760.75
237,157.30
246,494.50
255,772.65
270,000.00
275,000.00
289,066.20
600,000.00
1,020,000.00
1,162,064.80
412,406.40
1,875,553.90
$6,871,276.50
c
c
$6,865,000.00
6,276.50
$6,871,276.50
$(68,650.00)
6,802,626.50
3,244.25
$6,805,870.75
$130,137.08
18.957 Years
4.3071807%
4.3551098%
4.3628173%
Ehlers & Associates, Inc.
Leaders in Public Finance Page 6
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i'
City of Andover EDA
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Total Refunded Debt Service
Date Principal Coupon Interest Total P+I
0210112008 373,889.48 373,889.48
0210112009 345,128.76 345,128.76
02/0112010 345,128.76 345,128.76
02/0112011 345,128.76 345,128.76
0210112012 345,128.76 345,128.76
02101/2013 345,128.76 345,128.76
02101/2014 345,128.76 345,128.76
02/0112015 200,000.00 5.000% 345,128.76 545,128.76
02/0112016 210,000.00 5.000% 335,128.76 545;128.76
02/0112017 220,000.00 5.000% 324,628.76 544,628.76
02/0112018 230,000.00 5.000% 313,628.76 543,628.76
0210112019 245,000.00 5.000% 302,128.76 547,128.76
02/0112020 255,000.00 5.125% 289,878.76 544,878.76
02/0112021 270,000.00 5.125% 276,810.00 546,810.00
0210112022 280,000.00 5.125% 262,972.50 542,972.50
02/0112023 295,000.00 5.125% 248,622.50 543,622.50
02/0112024 315,000.00 5.125% 233,503.76 548,503.76
0210112025 325,000.00 5.200% 217,360.00 542,360.00
02/0112026 345,000.00 5.200% 200,460.00 545,460.00
0210112027 365,000.00 5.200% 182,520.00 547,520.00 .
0210112028 390,000.00 5.200% 163,540.00 553,540.00
0210112029 400,000.00 5.200% 143,260.00 543,260.00
0210112030 425,000.00 5.200% 122,460.00 547,460.00
0210112031 450,000.00 5.200% 100,360.00 550,360.00
0210112032 470,000.00 5.200% 76,960.00 546,960.00
02/0112033 495,000.00 5.200% 52,520.00 547,520.00
02/0112034 515,000.00 5.200% 26,780.00 541,780.00
Total $6,700,000.00 $6,663,313.36 $13,363,313.36
Yield Statistics
Average Life 19.236 Years
Weighted Avernge Maturity (Par Basis) 19.225 Years
Average Coupon 5.1700349%
Refunding Bond Information
Refunding Dated Date 110112007
Refunding Delivery Date 1105/2007
Ser04$19.58mPubProjR 1 SINGLE PURPOSE 111/30120061 3:06PM
Ehlers & Associates, Inc.
Leaders In PubliC Finance Page 7
@
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City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
PROOF OF GROSS D/S SAVINGS @ 4.47504220/0
NEW GROSS OLD GROSS Present
Date DIS DIS SAVINGS PV Factor Value
01/0512007 1.0000000x
0210112014 6,872,564.38 6,872,564.38 0.00 0.7312527x 0.00
08/0112014 145,991.25 172,564.38 26,573.13 0.7152489x 19,006.40
02101/2015 370,991.25 372,564.38 1,573.13 0.6995953x 1,100.55
08/0112015 141,491.25 167,564.38 26,073.13 0.6842843x 17,841.43
0210112016 376,491.25 377,564.38 1,073.13 0.6693084x 718.25
08/0112016 136,791.25 162,314.38 25,523.13 0.6546602x 16,708.98
02/01/2017 381,791.25 382,314.38 523.13 0.6403326x 334.98
08/0112017 131,891.25 156,814.38 24,923.13 0.6263186x 15,609.82
02/0112018 386,891.25 386,814.38 (76.87) 0.6126113x (47.09)
08/0112018 126,791.25 151,064.38 24,273.13 0.5992040x 14,544.56
02/01/2019 396,791.25 396,064.38 (726.87) 0.5860901x (426.01)
08/01/2019 121.391.25 144,939.38 23,548.13 0.5732632x 13,499.28
02/0112020 396,391.25 399,939.38 3,548.13 0.5607171x 1,989.50
08/0112020 115,822.50 138,405.00 22,582.50 0.5484455x 12,385.27
02/01/2021 405,822.50 408,405.00 2,582.50 0.5364425x 1,385.36
08/0112021 109,950.00 131,486.25 21,536.25 0.5247021 x 11,300.12
02101/2022 404,950.00 411,486.25 6,536.25 0.5132188x 3,354.53
08/0112022 103,902.50 124,311.25 20,408.75 0.5019867x 10,244.92
02/0112023 408,902.50 419,311.25 10,408.75 0.4910005x 5,110.70
08/01/2023 97,650.00 116,751.88 19,101.88 0.4802547x 9,173.77
0210112024 427,650.00 431,751.88 4,101.88 0.4697440x 1,926.83
08/0112024 90,720.00 108,680.00 17,960.00 0.4594634x 8,251.96
02/01/2025 425,720.00 433,680.00 7,960.00 0.4494079x 3,577.29
08/0112025 83,685.00 100,230.00 16,545.00 0.4395723x 7,272.72
02/01/2026 438,685.00 445,230.00. 6,545.00 0.4299521x 2,814.04
08/01/2026 76,230.00 91,260.00 15,030.00 0.4205423x 6,320.75
02/01/2027 446,230.00 456,260.00 10,030.00 0.41 13385x 4,125.73
08/01/2027 68,182.50 81,770.00 13,587.50 0.4023362x 5,466.74
02/01/2028 458,182.50 471,770.00 13,587.50 0.3935309x 5,347.10
08/01/2028 59,700.00 71,630.00 11,930.00 0.3849182x 4,592.07
02/0112029 459,700.00 471,630.00 11,930.00 0.376494Ix 4,491.57
08/0112029 51,000.00 61,230.00 10,230.00 0.3682543x 3,767.24
02/0 112030 471,000.00 486,230.00 15,230.00 0.3601949x 5,485.77
08/0112030 42,075.00 50,180.00 8,105.00 0.3523118x 2,855.49
02/0112031 482,075.00 500,180.00 18,105.00 0.3446013x 6,239.01
08/0112031 32,175.00 38,480.00 6,305.00 0.3370595x 2,125.16
02/0112032 487,175.00 508,480.00 21,305.00 0.3296828x 7,023.89
08/01/2032 21,937.50 26,260.00 4,322.50 0.3224675x 1,393.87
02/0112033 501,937.50 521,260.00 19,322.50 0.3154102x 6,094.51
08/01/2033 11,137.50 13,390.00 2,252.50 0.3085072x 694.91
02/0112034 506,137.50 528,390.00 22,252.50 0.3017554x 6,714.81
Total $17,274,594.38 $17,791,215.70 $516,621.32 $250,416.78
06 xover of Ser 04 $19.58 I SINGLE PURPOSE I 1113012006 I 3:06 PM
Ehlers & Associates, Inc.
Leaders In Public Finance Page 8
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iiIiii
City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Summary Of Bonds Refunded
of Maturity
Issue Maturity Type Bond Coupon Value Call Date Call Price
Dated 1/0112007 I Delivered 1/0112007
SOl 04 $19.58m Pub Proj Rev Bds B 02/01/2015 Serial Coupon 5.000% 200,000 02/0112014 100.000%
SOl 04 $19.58m Pub Proj Rev Bds B 02/01/2016 Serial Coupon 5.000% 210,000 0210112014 100.000%
SOl 04 $19.58m Pub Proj Rev Bds B 02/0112017 Serial Coupon 5.000% 220,000 0210112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02/0112018 Serial Coupon 5.000% 230,000 02101/2014 100.000%
SOl 04 $19.58m Pub Proj Rev Bds B 02/01/2019 Serial Coupon 5.000% 245,000 02/0112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02/0112020 Serial Coupon 5.125% 255,000 02/01/2014 100.000%
SOl 04 $19.58m Pub Proj Rev Bds B 02/01/2021 Serial Coupon 5.125% 270,000 0210112014 100.000%
SOl 04 $19.58m Pub Proj Rev Bds B 02/01/2022 Serial Coupon 5.125% 280,000 02/0112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02/0112023 Serial Coupon 5.125% 295,000 02/0112014 100.000%
SOl 04 $19.58m Pub Proj Rev Bds B 02/0112024 Serial Coupon 5.125% 315,000 02/0112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02/01/2025 Serial Coupon 5.200% 325,000 02/0112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02101/2026 Serial Coupon 5.200% 345,000 02/01/2014 100.000%
SOl 04 $19.58m Pub Proj Rev Bds B 0210112027 Serial Coupon 5.200% 365,000 02/0112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 0210112028 Serial Coupon 5.200% 390,000 02/01/2014 100.000%
Ser04 $19.58m Pub Proj Rev Bds B 02101/2029 Serial Coupon 5.200% 400,000 02/01/2014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02101/2030 Serial Coupon 5.200% 425,000 02/01/2014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02/01/2031 Serial Coupon 5.200% 450,000 0210112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02/01/2032 Serial Coupon 5.200% 470,000 02101/2014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02101/2033 Serial Coupon 5.200% 495,000 0210112014 100.000%
Ser 04 $19.58m Pub Proj Rev Bds B 02101/2034 Serial Coupon 5.200% 515,000 0210112014 100.000%
Subtotal $6,700,000
Total $6,700,000
06 xover of Ser 04 $19.58 I SINGLE PURPOSE 111130/2006 I 3:06PM
--
City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Refunding Summary
Dated 01/01/2007 I Delivered 01/05/2007
Sources Of Funds
Par Amount of Bonds
Reoffering Premium
Accrued Interest from 01/0112007 to 0110512007
$6,865.000.00
6,276.50
3,244.25
Total Sources
86,874,520.75
Uses Of Funds
Total Underwriter's Discount (1.000%)
Costs oflssuance
Gross Bond !osmance Premium (40.0 bp)
Deposit to Crossover Escrow Fund
Rounding Amount
68,650.00
45,140.75
49,880.96
6,710,306.87
542.17
Total Uses
86,874,520.75
Flow of Funds Detail
State and Local Government Series (SLGS) rntes for
Date of OMP Candidates
1113012006
Crossover Escrow :Fund Solution Method
Total Cost of Investments
---------------------------- ------------------------------------------
Interest Earnings @4.34O"1o
Total Draws
Net Funded
________________~~,z!O,lO~IlZ_
2,057,902.51
$8,768,209.38
Issues Refunded And Call Dates
Ser 04 $19.58m Pub Proj Rev Bds B
2/0112014
PV Analysis Summary (Net to Net)
Net PV Casbflow Savings @ 4.475'%(A1C)
Contingency or Rounding Amount
Net Present Value Benefit
250,416.78
542.17
$250,958.95
Net PV Benefit / $6,700,000 Refunded Principal __________________
Net PV Benefit / $6,865,000 Refunding Principal
3.746%
3.656%
Bond Statistics
Average Lite
Average Coupon
18.957 Years
4.3071807%
Net Interest Cost (NIC)
Bood Yield for Arbitrage Purposes
True Interest Cost (TIC)
All Inclusive Cost (AlC)
06 xoverofSer 04 $19.58 I SINGLE PURPOSE 11113012006 I 3:06PM
4.3551098%
4.3409045%
4.3628173%
4.4750422%
Ehlers & Associates, Inc.
Leaders In Public Finance Page 10
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PO F 4144-2
Department of the Treasury
Bureau of the Public Debt
(Revised July 1999)
OMS No. 1535-0092
STATE AND LOCAL GOVERNMENT SERIES
TIME DEPOSIT
The United states Treasury Securities - Stale and Local Govemement Series subscribed for on PD F 4144 and account inlormatior
furnished on PO F 4144-1 to which this schedule is attached and incorporated, are requested to be issued and held in book-enlr)
accounts on the books 01 the Department 01 the Treasury.
PRINCIPAL INTEREST ISSUE MATURITY ARST INTEREST"'
AMOUNT RATE DATE DATE PAYMENT DATE
(MMDDYY) (MMDDYY) (MMDDYY)
3,509 0% 1/05/2007 8/0112007
1,045 0% 1/0512007 2/011200e 8/01/2007
1,048 0% 1/0512007 2/01/2009 e101/2007
1,046 0% 1/05/2007 2/01/2010 el0112007
1,046 . 0% 1/05/2007 2/0112011 8101/2007
1,046 0% 1/05/2007 2/01/2012 e101/2007
1,048 0% 1/05/2007 2/0112013 e101/2007
6,700,522 4.342% 1/0512007 2/01/2014 e101/2007
*A first interest payment date must be specified for interest bearing securities with a maturity date greater than one year.
Taxpayer Identification Number:
Name of State or local Government Body:
@
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City of Andover EDA
$6,865,000 Refunding Bonds, Series 2007 - Proposed Crossover Refunding of
$19,580,000 Public Project Lease Revenue Bonds, Series 2004
(City of Andover Community Center)
Crossover Escrow Fund Cashflow
Date Principal
01/0512007
08/01/2007 3,509.00
02/0112008 1,045.00
08/0112008
02/0112009 1,046.00
08/0112009
02/0112010 1,046.00
08/0112010
02/0112011 1,046.00
08/01/2011
02/01/2012 1,046.00
08/01/2012
02/01/2013 1,046.00
08/01/2013
02/01/2014 6,700,522.00
Total $6,710,306.00
Rate
Interest Receipts Disbursements Cash Balance
0.87 0.87
166,814.22 170,323.22 170,323.13 0.96
145,468.33 146,513.33 145,991.25 523.04
145,468.33 145,468.33 145,991.25 0.12
145,468.33 146,514.33 145,991.25 523.20
145,468.33 145,468.33 145,991.25 0.28
145,468.33 146,514.33 145,991.25 523.36
145,468.33 145,468.33 145,991.25 0.44 .
145,468.33 146,514.33 145,991.25 523.52
145,468.33 145,468.33 145,991.25 0.60
145,468.33 146,514.33 145,991.25 523.68
145,468.33 145,468.33 145,991.25 0.76
145,468.33 146,514.33 145,991.25 523.84
145,468.33 145,468.33 145,991.25 0.92
145,468.33 6,845,990.33 6,845,991.25
$2,057,902.51 $8,768,209.38 $8,768,209.38
4.342%
Investment Parameters
Invesbnent Model [PV, GIC, or Securities]
Defuult invesbnent yield target
Securities
Bond Yield
Cash Deposit
Cost of Investments Purchased with Bond Proceeds
Total Cost of Investments
0.87
6,710,306.00
$6,710,306.87
Target Cost oflnvesbnents at bond yield
Actual positive or (negative) arbitrage
$6,709,801.69
(505.18)
Yield to Receipt
Yield for Arbitrage Purposes
4.3397979%
4.3409045%
State and Local Government Series (SLGS) rates for
11/3012006
-
EXTRACT OF MINUTES OF A MEETING
BOARD OF COMMISSIONERS OF THE
ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF ANDOVER, MINNESOTA
HELD: December 5, 2006
Pursuant to due calland notice thereof, a regular or special meeting of the Board of
Commissioners of the Economic Development Authority of the City of Andover, Minnesota was
duly called and held at the City Hall in the City of Andover, Minnesota, on December 5, 2006 at
P.M.
The following members were present:
and the following were absent:
Member
introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE ISSUANCE OF $6,865,000 PUBLIC FACILITY LEASE
REVENUE REFUNDING BONDS, SERIES 2007 (CITY OF ANDOVER COMMUNITY
CENTER) AND THE EXECUTION AND DELIVERY OF A FIRST AMENDMENT TO
LEASE AGREEMENT, A FIRST SUPPLEMENTAL INDENTURE AND AMENDMENT TO
MORTGAGE AND AN ESCROW AGREEMENT IN CONNECTION THEREWITH
WHEREAS, Minnesota Statutes, Section 469.012, Subdivision 1, clause 15 (the "Act"),
authorizes the Economic Development Authority of the City of Andover, Minnesota (the
"Authority"), to issue revenue bonds, in anticipation of the collection of revenues ofa project, to
fmance, in whole or in part, the cost of acquisition, construction, reconstruction, improvemep.t,
betterment or extension of a project; and
WHEREAS, the Authority has previously fInanced the acquisition and betterment of a
community center (the "Project"), used by the City of Andover, Minnesota (the "City"), which
was an authorized project under the Act, by the issuance of its $19,580,000 original principal
amount of Public Facility Lease Revenue Bonds, Series 2004 (City of Andover Community
Center), dated May 4,2004 (the "2004 Bonds") pursuant to a Mortgage and Security Agreement
and Indenture of Trust between the Authority and U.S. Bank National Association, St. Paul,
Minnesota, as Trustee (the "Trustee"), dated as of May 1,2004; and
WHEREAS, by means of a crossover refunding, the Authority has previously refunded
$9,755,000 aggregate principal amount of the February 1,2015 and later maturities of the 2004
Bonds, by the issuance of its $10,000,000 Public Facility Lease Revenue Refunding Bonds,
Series 2006 (City of Andover Community Center), dated December 1,2006 (the "2006 Bonds");
the Authority and the Trustee entered into a Mortgage and Security Agreement and Indenture of
Trust (the "Indenture"), the Authority and the City entered into a Lease Agreement (the "Lease")
and the Authority and U.S. Bank National Association, in St. Paul, Minnesota (the "Escrow
Agent") entered into an Escrow Agreement, each dated December 1, 2006, with respect to the
issuance of the 2006 Bonds; and
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WHEREAS, now the Authority proposes to refund the remaining outstanding portion of
the February 1, 2015 and later maturities, aggregating $6,700,000 in principal amount, of the
2004 Bonds (the "Prior Bonds"), on February 1,2014, by means of a crossover refunding (the
"Refunding") and to provide funds for the Refunding, the Authority proposes to issue its
$6,865,000 Public Facility Lease Revenue Refunding Bonds, Series 2007 (City of Andover
Community Center) (the "Bonds"); and
WHEREAS, the Authority and the Escrow Agent will enter into an Escrow Agreement,
to be dated January 1, 2007 (the "Escrow Agreement"), pursuant to which an Escrow Account
will be established to pay when due the interest to accrue on the Bonds to and including February
1,2014, and to pay when called for redemption on February 1, 2014, $6,700,000 of the principal
amount of the Prior Bonds; and
WHEREAS, the Bonds will be issued pursuant to a First Supplemental Indenture and
Amendment to Mortgage between the Authority and the Trustee, to be dated as of January 1,
2007 (the "Supplemental Indenture"), will be secured by a pledge and assignment of certain
rights of the Authority under the Lease and a First Amendment to Lease Agreement, to be
entered into between the Authority and the City, to be dated as of January 1,2007 (the
"Amendment to Lease") and will also be secured by the revenues to be derived by the Authority
from the Project and pursuant to the Indenture and the Supplemental Indenture, the Authority
grants to ~e Trustee a mortgage interest in the Project with certain reservations; and
WHEREAS, the Bonds shall be payable solely from the revenue pledged therefor and
shall not constitute a debt of the Authority within the. meaning of any constitutional or statutory
limitation nor shall they constitute nor give rise to a pecuniary liability of the Authority or a
charge against its general credit or taxing powers and shall not constitute a charge, lien, or
encumbrance, legal or equitable, upon any property of the Authority, other than its interest in the
Project; and
WHEREAS, in order to carry out the Refunding, (1) the Authority will continue to lease
the Project to the City pursuant to the Lease and the Amendment to Lease and (2) the City will
continue to lease the Project to the Authority pursuant to the original Ground Lease Agreement,
dated as of May 1,2004 (the "Ground Lease").
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Economic Development Authority of the City of Andover, Minnesota:
1. Findings. The Board of Commissioners acknowledges, finds, determines and
declares that the Project promotes the welfare of the City and satisfies the purposes stated in the
Act.
2. Authorization of Refunding. The refinancing of the Project by the Authority to be
accomplished by the Refunding, be and the same is hereby authorized.
3. Ratification of Acceptance of Purchase. By Resolution duly adopted on October
3,2006, the Board authorized the City Administrator to execute a Bond Purchase Agreement,
within the parameters outlined in the resolution, for the sale of the Bonds. The acceptance of the
offer of Northland Securities, Inc., in Minneapolis, Minnesota (the "Purchaser"), to purchase the
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Bonds in accordance with the terms and at the rates of interest set forth in the Indenture, and the
execution the Bond Purchase Agreement by the City Administrator, on behalf of the Authority, is
hereby ratified. The Bonds shall bear interest at the rates, be in the denominations, numbered,
dated, mature, be subject to redemption, in such form and have such other details and provisions
as are prescribed by the Indenture and the Supplemental Indenture.
4. Special Obligations: Securitv: Authorization to Execute and Deliver Supplemental
Indenture and Bonds. The Bonds shall be special obligations of the Authority payable solely
from the revenues derived by the Authority from the Project, in the manner provided in the
Indenture and the Supplemental Indenture. As security for the payment of the principal of,
premium, if any, and interest on the Bonds, pro rata and without preference of anyone Bond
over any other Bonds, the Board of Commissioners hereby authorizes and directs the President
and Executive Director to execute the Supplemental Indenture in substantially the form on file
with the Executive Director, and to deliver the Supplemental Indenture to the Trustee, and does
hereby provide that the Indenture and the Supplemental Indenture shall provide the terms and
conditions, covenants, rights, obligations, duties and agreements of the Holders (as defined in the
Indenture) of the Bonds, the Authority and the Trustee as set forth therein. All of the provisions
of the Indenture and the Supplemental Indenture, when executed as authorized herein, shall be
deemed to be a part of this resolution as fully and to the same extent as if incorporated herein and
shall be in full force and effect from the date of execution and delivery thereof. The President
and the Executive Director are hereby authorized and directed to execute and deliver the Bonds.
5. Authorization to Execute and Deliver Amendment to Lease and Escrow
Agreement. The President and the Executive Director are hereby authorized and directed to
execute, attest and deliver the Amendment to Lease and the Escrow Agreement in substantially
the forms on file with the Executive Director. All of the provisions of the Lease, the
Amendment to Lease and the Escrow Agreement, when executed and delivered as authorized
herein, shall be deemed to be part of this resolution as fully and to the same extent as if
incorporated herein and shall be in full force and effect according to the terms thereof from the
date of execution and delivery thereof.
6. Termination Upon Payment or Discharge. Upon the payment or discharge of the
Bonds in accordance with the terms of the Indenture, the Supplemental Indenture, the Lease, the
Amendment to Lease and the Escrow Agreement (together, the "Bond Documents") shall
terminate and the Authority's interest in the Project and real estate on which the Project is located
shall cease.
7. Binding: Obligations: No Personal Liability. All covenants, stipulations,
obligations and agreements of the Authority contained in this resolution and contained in the
Bond Documents shall be deemed to be the covenants, stipulations, obligations and agreements
of the Authority to the full extent authorized or permitted by law, and all such covenants,
stipulations, obligations and agreements shall be binding upon the Authority. Except as
otherwise provided in this resolution, all rights, powers and privileges conferred and duties and
liabilities imposed upon the Authority or the Board of Commissioners thereof by the provisions
of this resolution or by the Bond Documents, shall be exercised or performed by the Authority
by such members of the Board of Commissioners, or such officers, board, body or agency
thereof as may be required by law to exercise such powers and to perform such duties.
1970116vl
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No covenant, stipulation, obligation or agreement herein contained or contained in the
Bond Docwnents shall be deemed to be a covenant, stipulation, obligation or agreement of any
member of the Board of Commissioners, or any officer, agent or employee of the issuer in that
person's individual capacity, and neither the Board of Commissioners of the Authority nor any
officer executing the Bonds shall be liable personally on the Bonds or be subject to any personal
liability or accountability by reason of the issuance thereof.
8. Sole and Exclusive Benefit. Except as herein otherwise expressly provided,
nothing in this resolution or in the Indenture, as amended by the Supplemental Indenture,
expressed or iinplied, is intended or shall be construed to confer upon any person or firm or
corporation other than the Authority or the Trustee, any right, remedy or claim, legal or
equitable, under and by reason of this resolution or any provision hereof or of the Indenture or
any provisions thereof, this resolution, the Indenture, as amended by the Supplemental Indenture,
and all of their provisions being intended to be and being for the sole and exclusive benefit of the
Authority and the Holders from tiine to tiine of the Bonds issued under the provisions of this
resolution and the Indenture, as amended by the Supplemental Indenture.
9. Provisions Held Separate and Apart: Binding Contracts. In case anyone or more
of the provisions of this resolution, the Bond Docwnents or any of the Bonds issued hereunder
shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect
any other provision of this resolution, the Bond Docwnents, or the Bonds, but this resolution, the
Bond Docwnents and the Bonds shall be construed and endorsed as if such illegal or invalid
provision had not been contained therein. The terms and conditions set forth in the Bond
Docwnents, the pledge of revenues derived from the Project, the creation of the funds provided
for in the Indenture, the provisions relating to the handling of the proceeds derived from the sale
of BOIlds pursuant to and under the Indenture and the handling of said revenues and other monies
are all commitments, obligations and agreements on the part of the Authority contained in the
Indenture, and the invalidity of the Bond Docwnents, shall not affect the commitments,
obligations and agreements on the part of the Authority to create such funds and to handle said
revenues, other monies and proceeds of the Bonds for the purposes, in the manner and according
to the terms and conditions fixed in the Indenture, it being the intention hereof that such
commitments on the part of the Authority are as binding as if contained in this resolution
separate and apart from the Indenture or the Lease.
10. Bond Recital. The Bonds shall contain a recital that they are issued pursuant to
the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the .
regularity of the issuance thereof, and that all acts, conditions and things required by the laws of
the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds
and to the execution of the Bond Docwnents to happen, exist' and be performed precedent to and
in the enactment of this resolution, and precedent to the Bonds, the execution of the Bond
Docwnents have happened, exist and have been performed as so required by law.
11. Performance. That the officers, attorneys, engineers and other agents or
employees of the Authority are hereby authorized to do all acts and things required of them by or
in connection with this resolution, the Bond Docwnents, for the full, punctual and complete
performance of all the terms, covenants and agreements contained in the Bonds, the Bond
Docwnents and this resolution.
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12. Furnishing of Certificates and Proceedings. The President and the Executive
Director and other officers of the Authority are authorized and directed to prepare and furnish to
the Purchaser certified copies of all proceedings and records of the Authority relating to the
Bonds, and such other affidavits and certificates as may be required to show the facts relating to
the legality of the Bonds as such facts appear from the books and records in the officers' custody
and control or as otherwise known to them; and all such certified copies, certificates and
affidavits, including any heretofore furnished, shall constitute representations of the Authority as
to the truth of all statements contained therein.
13. Negative Covenant as to Use of Proceeds and Project. The Authority hereby
covenants not to use the proceeds of the Bonds or to use the Project, or to cause or permit them
to be used, in such a manner as to cause the Bonds to be "private activity bonds" within the
meaning of Sections 103 and 141 through 150 of the Code.
14. Tax-Exempt Status of the Bonds; Rebate; Elections. The Authority shall comply
with requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(1) requirements relating to temporary periods for investments, (2) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment
earnings to the United States.
15. Designation ofOualified Tax-Exempt Obligations. In order to qualify the Bonds
as "qualified tax exempt obligations" within the meaning of Section 265(b )(3) of the Code, the
Authority hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7,1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the
Code, treating "qualified 501(c)(3) bonds as not being private activity bonds;
(c) the Authority hereby designates the Bonds as "qualified tax exempt
obligations" for purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax exempt obligations (other than
private activity bonds, treating qualified 501 (c )(3) bonds as not being private activity
bonds) which will be issued by the Authority (and all entities treated as one issuer with
the Authority, and all subordinate entities whose obligations are treated as issued by the
Authority) during calendar year 2007 will not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the Authority during
calendar year 2007 have been designated for purposes of Section 265(b)(3) of the Code.
The Authority shall use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designation made by this section.
16. Authorized Issuer Representative. The President and Executive Director are each
hereby designated and authorized to act on behalf of the Authority as the Issuer Representative,
as defmed in the Indenture.
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17. Modifications to Documents. The approval hereby given to the various
documents referred to above includes approval of such additional details therein as may be
necessary and appropriate and such modifications thereof, deletions therefrom and additions
thereto as may be necessary and appropriate and approved by the Authority Attorney and the
Authority officials authorized herein to execute said documents prior to their execution; and said
Authority officials are hereby authorized to approve said changes on behalf of the Authority.
The execution of any instrument by the appropriate officer or officers of the Authority herein
authorized shall be conclusive evidence of the approval of such documents in accordance with
the terms hereof. In the absence of the President or Executive Director any of the documents
authorized by this resolution to be executed by the Acting President or the Acting Executive
Director, respectively.
The motion for the adoption of the foregoing resolution was du1y seconded by member
, and upon vote being taken thereon the following voted in favor thereof:
and the following voted against the same:
whereupon the resolution was declared du1y passed and adopted.
Passed: December 5, 2006.
President
Attest:
Executive Director
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STATE OF MINNESOTA )
COUNTY OF ANOKA ) SS.
CITY OF ANDOVER )
I, the undersigned, being the duly qualified and acting Executive Director of the
Economic Development Authority of the City of Andover, Minnesota, hereby certify that I have
carefully compared and attached the foregoing extract of minutes of a meeting of the Board of
Commissioners held December 5, 2006, with the original thereof on file and of record in my
office and the same is a full, true and complete transcript therefrom insofar as the same relates to
a resolution authorizirig issuance of bonds.
WITNESS my hand on December 5, 2006.
Executive Director
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO: EDA President & Board
FROM: Jim Dickinson, Executive Director
SUBJECT: Supplemental Agenda Item for December 5, 2006 EDA Meeting
DATE: December 5, 2006
The City Council is requested to receive the following supplemental information.
Add-On Item. Discuss Letter from Andover Station Owners Association (Supplemental)
Planning
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
FROM:
Will Neumeister, Director of Community Development~
TO:
EDA President and Board
CC:
Jim Dickinson, Executive Director I
SUBJECT: Discuss Letter from Andover Station Owners Association
DATE:
December 5, 2006
INTRODUCTION
Earlier this year the City Council discussed at a workshop a variety of alternatives for the median
maintenance on Bunker Lake Boulevard. Since that meeting, staff conveyed to the
representatives of the Andover Owners Association what the plan entailed. Staff indicated to
them that the City was willing to fund half of the costs with the other half being the Association's
to bear.
DISCUSSION
As is evident from the attached letter, the concept of what is being done should be discussed
further as it will be resisted by the Andover Station Owner's Association. If there isn't cost
sharing then the entire cost would be the EDA's to bear. The original staff report from August
22, 2006 and minutes of that meeting are also attached.
ACTION REOUIRED
The EDA is asked to review the letter from the Andover Station Owners Association and provide
direction.
Respectfully submitted,
WL
Will Neumeister
Attachment
Letter from Andover Station Owners Association
Report and Minutes of Council Workshop
RL~CEiVED
November 28, 2006
NOV 2 9 2006
CITY OF ANDOVER
City of Andover
Attn: Will Neumeister
1685 Crosstown Blvd. NW
Andover, MN 55304
RE: ANDOVER STATION
Dear Will:
This letter is written in response to your letter to the Mayor and Council Members of
Andover in regards to the upgrading of Bunker Lake Blvd. While all Association
members are appreciative of your position on reducing the costs associated with the
median, we also feel at the same time that this cost should be absorbed by the City in its
entirety based on the following.
. We were not able to input on the makeup of these islands prior to the initial
plantings. The islands on Bunker and those on Martin were planted with the
wrong materials, over planted and not planted correctly.
. Tenants at Andover Station are struggling and to apply costs in these amounts in
addition to real estate taxes and regular CAM costs will 1) put a huge stress on
their financials 2) hamper future leasing efforts due to higher CAM costs as
related to other similar centers
. If the City will correct the initial problem we would be more than willing to
budget expenses of a flat payment of $2,000 annually to the City for ongoing
maintenance.
The Board of Directors of Andover Station II Owner's Association have reviewed this
document and are in completed agreement and support of the information contained
herein.
If you have any questions please call me at (952) 843-0344.
On Behalf Of:
ANDOVER STATION OWNERS ASSOCIATION
~~'.
Jennifer L Lenhart, CPM@
President
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CITY OF
NDOVE
@
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
Mayor and Council Members
CC:
Jim Dickinson, City Administrator """'-
Will Neumeister, Community Development Directo~
FROM:
SUBJECT: Options for Bunker Lake Boulevard Median Maintenance (continued) - Planning
DATE:
August 22, 2006
INTRODUCTION
At the July 25th Council Workshop the discussion item was first introduced. Since that time, staff has
thought about other options available and want to get more input from the Council on what direction to
pursue. Attached is the discussion item as it was presented last month.
DISCUSSION
These are six options that could be cDnsidered as to what can be done with the median on Bunker:
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6.
1. Do nothing. ($10,000 annual cost to maintain)
2. Remove all the plant materials and place concrete in the median. (one-time cost of$120,000)
3. Remove all the plant materials and place colored concrete in the median (one-time cost of $240,000)
4. Remove all the plant materials and place paver bricks in the median leaving spaces for a limited
number of decorative trees and shrubs. (initial cost could be well over , with some annual,
costs for . ited landsca e areas (
Remove all the plant material and place crushed granite in the median leaving spaces for a limited
number of decorative trees and shrubs. (initial CDst of $45,000 with some annual costs for limited
landscaped areas)
e ve the p ant materials and start over with a native planting plan. (we are still trying to get a
cost estimate from Prairie Restorations and it will be provided at the meeting)
Staff feels that option #5 is the best one to pursue at this time. Whichever option is picked, the EDA lind
City Council will need to be discuss who would pay the costs to do the work. At the meeting, staff will
provide some digital photos of examples of what some other cities have done in their medians.
ACTION REOUESTED
The staff is looking for direction on whether there is anyone option that has more appeal than any of the
others on the list. The Andover Station Owners Associations are still interested in moving towards
lowering their annual Dperating costs.
Attachment: Previous Staff Report
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO: Mayor and Council Members
CC: JIID. Dickinson, City Administrator
FROM: Will Neumeister, Community Development Director wJ.-
SUBJECT: Options for Bunker Lake Boulevard Median Maintenance
DATE: July 25, 2006
As you can see from the attached sheet from Finance, the Bunker Lake Boulevard median is again going to cost both
property owners asSDciRtiOns at AndDver Station a significant amDunt Df mDney. This memo is written because the
Associations have asked for us to look at new ways to get these costs under control.
A month ago the staff suggested to put concrete in the entire median, but that was met with objection. Staff' has
consulted with Jl.{ickman Brothers and together we believe we have an idea of what to do to gain control of the weeds
and still have landscaping in the median. We feel that we need to limit the amDunt of organic area to only about 10%
of the area and selectively place salt tolerant, very hardy plants in a proper fashion in smaller spaces (see attached
drawing). The situation we have right now is Dut of control and will not ever be completely under control unless we
do a major change.
We would suggest a material in the median that looks nice, and is able to keep weeds from growing up and is mDre
cost effective to install. The material would be a grey C01Dred crushed (unwashed sand) granite quarry rock that is
placed and compacted very well, then a material called "poly pavemenf' would be sprayed on it 'to hold it in place
and bind the material together. The finished product would look like exposed aggregate (stronger than bituminous).
The idea would be to reduce.the amount of organic growing media to a much smaller area, and then plant very close
together to have the plants out compete the weeds. The cost breakdDwn below is what could be expected include:
Item No. Description Units Est. Quantity Unit Price Total
I Mobilization Each 1 $3,500 $3,500
2 Traffic Control Each . 1 $3,500 $3,500
3 Common CY 600 $15 $9,000
Excavation
4 Granular CY 300 $12 $3,600
Borrow
5 Crushed Granite Tons 750 tons . $16 $12,000
6 LabDrlEqup. To CY 300 $8 $2,400
Compact Granite
7 hrigation System Lump Sum I $3,000 $3,000
Modifications
8 Salvage Plants! Lump Sum I $5,000 $5,000
New Plants
9 Poly Pavement Lump Sum 1 $2,400 $2,400
TDtal $44,400
Attachments: Current Maintenance Cost Breakdown / Concept Drawing
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c
.. CITY OF ANDOVER '._ .<!J
~ Andover Station Maintenance Cost Sharing. 200S
Area A Area B AreaC
Andover Station U Andover Station Andover Cc:onomic
Owners Association Pro emes Association Development Authority
% $ % $ % $
Mickman Brothers
Spring Cleanup $ 1,985.00 20.00% $ 397.00 80.00% $ 1,58B.00 0.00% $
Start up Irrigation System 1,145.38 3920% 448.99 45.10% 516.57 15.70% 179.82
Repair Irrigation 491.49 3920% 192..66 45.10% 221.66 15.70% 77.17
Mid-Season Cleanup 2,997.00 20.00% 599.40 80.00% 2,397.60 0.00".4
FaD Cleanup 1,635.00 20.00% 3ZT .00 80.00% 1 ,30B.00 0.00%
WlI1lerization of Irrigation 160.00 3920".4 62.72 45.10% 72.16 15.70% 25.12
B,413.a7 3,Bzr.77 6,103.99 282.11
Anoke County Highway Dept
Penni! 110.00 20.00% 22.00 80.00% BB.OO. 0.00%
Water 2,466.25 3920% 966.3B 45.10% 1,111.83 15.70% 387.04
United Rentals
Lane ClosW'eS on Bunker 1.D45.5O 20.00% 209.10 80.00% B36.4O 0.00".4
Street Lights
Bulbs 868.08 50.00% 434.04 24.00% 20B.34 26.00% 225.70
Aircon Electric 3,821.71 50.00% 1,960.86 24.00% 94121 26.00% 1,019.64
Connexus Energy 6,289.37 50.00% 3,144.69 24.00% 1 ,509.45 26.00% 1,63523
1'1,079.16 5,539.59 3,&59.00 2,880.57
Invoice Totals 23,113.78 B,764.84 10,799.22 3,549.72
37.82% 46.72% 15.36%
City Expenses 248.25 94.14 115.99 3&.13
Grand Total $ B,B5B.9B $ 10,915.21 $ 3,587.85
~ p.....71..L-/
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gldatalstaffllbrezinl<alAndover Station Cost Sharing 2005.xJs
-$C-
116,'2006
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Crat!; ff&s
Special Andover City Council Workshop Meeting
Minutes - August 22, 2006
Page 7
VIEW OF BUFFER REQUIREMENTS AND POTENTIAL CHANGES
City En ineer Berkowitz stated there continues to be a number of problems arising on properties
where ho s are built close to the back of the required 100-foot buildable area. Especially
problematic e properties that abut wetlands or storm water ponds. There have also been some
questions raise bout where the required 16.5 buffer area around wetlands and ponds is to be
measured from. nges to three code sections are being suggested to address these problems.
He reviewed the chan es and requested Council direct staff as to whether or not the proposed
ordinance amendments ould move forward.
Councilmember Trude stated e thought they had already done this. City Engineer Berkowitz
responded staff would need to g ack and do some research on this.
Councilmember Trude stated it was ill Building Department that had addressed this previously.
Councilmember Jacobson asked how difficult would be to put a deck in the 16 Y, feet. City
Engineer Berkowitz responded the footing woul .t in muck and eventually pull away.
Councilmember Trude stated the new number 3 needs say the new homeowners need to
respect the buffer. City Engineer Berkowitz stated if they ake this a City Ordinance, it would
be enforceable. He stated they would come back with the di ensions of the buffer and the
signage recommended.
Councilmember Trude suggested they add a number 3 for a permanent buffer.
Mayor Gamache recommended they hold off on this until after the
Councilmember Orttel requested staff go through the past minutes to see i
this in the past.
Mayor Gamache stated they should tie this into the study if possible.
.. OP110N FOR BUNKER LAKE BOULEVARD MEDIAN MAINTENANCE (CONTINUED)
Community Development DirectDr Neumeister stated at the July 25, 2006 Council Workshop the
discussion item was first introduced. Since that time, staffhas thought about other options
available and want to get more input from the Council on what direction to pursue. He reviewed
the seven options that could be considered as to what can be done with the median on Bunker.
He indicated staff is looking for direction on whether there is anyone option that has more
appeal than any Df the others on the list. The Andover Station Owners Association is still
interested in moving toward lowering their annual operating costs.
-7-
Special Andover City Council Workshop Meeting
Minutes - August 22, 2006
Page 8
He stated if they went with the prairie grass option it would need to be burned off once a year.
He noted the native plantings would take a couple of years to establish.
Councilmember Knight stated he wDuld like to see the money used elsewhere and wants
landscaping that took care of itself. He is in favor of the granite.
CDuncilmember Orttel agreed. He suggested researching salt tolerant plantings. The problem
with prairie grass is that people do not like the look of it and believe the grass is just weeds.
Councilmember Knight stated another issue is the prairie grass seeds blowing into neighboring
lawns.
Councilmember Jacobson asked what the association wants. Community Development
Neumeister responded they want the cheapest option available.
Mayor Gamache asked how high the trees would grow on Jay Street. Mr. Neumeister responded
15 - 25 feet depending on the tree.
Councilmember Trude asked if the trees are irrigated in those medians. Mr. Neumeister
responded they are not irrigated.
Mayor Gamache asked if they could add taller trees. City Engineer Berkowitz responded the
County would not allow taller trees.
Mr. Neumeister stated staff is recommending the number 5 option.
Councilmember Orttel suggested they go back to the association with the $25,000 option and see
what type of a contribution they are willing to make, even if they make the contribution over
time.
Councilmember Trude stated she still wants them to look at the lighting issues. City Engineer
Berkowitz responded they are still working on this. He noted to change the lighting would be
difficult.
Councilmember Knight suggested taking light bulbs out of the lights and not replacing them.
Councilmember Trude noted they could use the poles as banner hangers once the bulbs were
removed.
Councilmember Orttel asked ifthere is a way to get someone to spray the weeds a couple of
times a year in the median. Mr. Neumeister responded this would be brought back to Council
after staff speaks with the association.
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