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HomeMy WebLinkAboutNovember 21, 2006 o 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING November 21,2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (11/8/06 Regular Mtg.) 3. Approve Community Center Refinancing 0 4. Amendment to Bruggeman Purchase Agreement-Continued 5. 2007 EDA Budget Review 6. Approve LMCIT Liability Coverage 7. Update on Economic Development Activities 8. Other Business 9. Adjourn o o o o 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 o Andover Economic Development Authority Meeting Minutes-November 21,2006 Page 2 carried lInanimously. (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 lInanimously. o 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 TIP funds to work with. Mr. Dickinson stated at the end of the year they will be at approximately $2.5 million. o 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 districts 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. o 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. o APPROVE LMCIT LIABILITY COVERAGE o 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 o Andover Economic Development Authority Meeting Minutes - November 21, 2006 Page 4 adjourned at 6:52 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary (; o