HomeMy WebLinkAboutOctober 17, 2006
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
October 17, 2006
6:00 p.m.
Conference Rooms A & B
AGENDA
l. Call to Order - 6:00 p.m.
2. Approval of Minutes (10/3/06 Regular Mtg.)
3. Discuss Business Subsidy Request
0 4. Update on Economic Development Activities
5. Other Business
6. Adjourn
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
OCTOBER 17, 2006 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by President Mike
Gamache, October 17, 2006, 6:01 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present:
Commissioners Don Jacobson, Mike Knight, Julie Trude; Voting
resident members Joyce Twistol
Commissioner Ken Orttel, Voting resident member Robert Nowak.
Edward Schultz (Advisor to the EDA)
Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
City Engineer, David Berkowitz
Others
Absent:
Also present:
o APPROVAL OF MINUTES
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October 3, 2006: Correct as written.
MOTION by Jacobson, Seconded by Knight, approval of the Minutes as written. Motion carried
lInanimously.
DISCUSS BUSINESS SUBSIDY REQUEST
Executive Director Dickinson explained Rumblebee Properties has requested business assistance
financing from the EDA. The property is located in the recently created Tax Increment
Financing (TIP) district 1-4, an area just east of Round Lake Boulevard and north of 161 Avenue.
Mr. Dickinson reviewed the pre-application with the Commission.
Commissioner Jacobson stated on page 4, part of this is the auto sales. Regarding parking, this
was what was in the original application for auto sales. He did not think they had thirty more
spots for parking in the auto sales plan.
Commissioner Trude wondered how many acres this is. Mr. Dickinson indicated the total area is
38,950 square feet. Commissioner Trude wondered if they would do a calculation based on
square footage. Mr. Dickinson explained how they would calculate the price. $400,000 is a
more realistic amount. The property is worth about $275,000 now.
Commissioner Jacobson wondered what the loan would consist of. He did not think this
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Andover Economic Development Authority Meeting
Minutes - October 17, 2006
Page 2
included the building. Mr. Dickinson indicated in this area, TIF money can be used for buildings
because it is a redevelopment area but it is not for the building.
Commissioner Trude thought they would have to fix the building up to make the TIF loan
worthwhile.
Commissioner Trude wondered if there is any hope for that area if they do not do any TIP. Mr.
Dickinson stated the last person he talked to and told them what they would need to do to qualify,
has not contacted him and that was nine months ago.
Commissioner Trude thought they may need to have a meeting with the property owners in that
area to see what their plans are. Mr. Dickinson stated they are currently in year two of the TIF
district and they have four years before the parcels would fallout of the district if there is not any
activity.
Commissioner Trude asked if they should have a business success record in order to do a TIP.
Mr. Dickinson stated they would need a requirement that they would need to stay in business as
long as they have the TIF and also a previous record of some success.
Commissioner Knight asked if they have a right to look at their books. Mr. Dickinson stated they
could. The applicant will have to meet the "but for" test and show a P&L Statement.
Commissioner Knight thought they have a double risk going on here. Commissioner Trude
thought the City has a limited risk and that the bank would carry on all of the risk.
Mr. Dickinson read an email from Mr. Nowak indicating they need to limit the payback to ten
years and they need to look at the P&L before making a decision.
President Gamache wondered if the applicant will even want to do this with the presented price.
Mr. Dickinson stated he needs to bring this to the applicant.
Commissioner Jacobson wondered why they are letting him go into business without getting all
the requirements done. Mr. Neumeister stated his approval at the City Council was the
stipulation that the requirements be done. He is trying to get them done with TIF approval.
Ms. Twistol indicated it would be nice if they did some fCl9ade improvements instead of just
parking lot improvements.
o UPDATE ON ECONOMIC DEVELOPMENT ACTWITIES
Community Development Director Neumeister reviewed the EDA activities related to Andover
Station North that the City staffhave recently been engaged in.
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Andover Economic Development Authority Meeting
Minutes - October 17, 2006
Page 3
OTHER BUSINESS
Andover City Flag - Mr. Dickinson reviewed a flag proposal for the City. Commissioner
Jacobson wondered if they should use cream for a background color instead of white. Ms.
Twistol indicated she would like to see a border around the flag and that she likes the white
background because it makes the emblem stand out more.
Motion by Jacobson, Seconded by Trude, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:44 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary