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HomeMy WebLinkAboutJuly 18, 2006 o o o CV/V\.Q;'\dJlCl-- ~-IS-'~ CITY OF NDOVE ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JULY 18, 2006 - MINUTES A Meeting ofthe Andover Economic Development Authority was called to order by President Mike Gamache, July 18, 2006, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Mirmesota. Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie Trude; Joyce Twistol Commissioner Robert Nowak, Edward Schultz (Advisor to the EDA) . Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer, Dave Berkowitz Others Absent: Also present: APPROVAL OF MINUTES June 20, 2006 Regular Minutes: Correct as written. MOTION by Knight, Seconded by Twistol, approval ofthe Minutes as written. Motion carried 4 ayes, 1 present (Jacobson). LETTER OF INTENT/TOWN CENTER COMPANIES & NORTH STAR PARTNERS/PRESENTATION & REVIEW Mr. Neumeister stated a revised letter of intent was negotiated with Town Center Companies, LLC in conjunction with Northstar Partners (as broker) to purchase Lot 1, Block 2, Andover Station North. Commissioner Orttel arrived at 6:02 p.m. Commissioner Trude asked if some assessments were paid on the other parcels. Mr. Dickinson stated to begin with they are talking about assessing for private streets but they elected to go with a public street. He noted there were assessments paid. Commissioner Trude asked if they would be adding private roads within the site. Mr. Dickinson stated the applicant would need to build them. Commissioner Jacobson asked what the applicants objected to on the letter of intent. o Andover Economic Development Authority Meeting Minutes - July 18, 2006 Page 2 Mr. Doug Uhrharnmer, Town Center Companies & Scott Kurnmel, Northstar Partners, made a presentation to the Commission. Mr. Uhrharnmer stated he would like to see a six month extension being included in this. Mr. Kurnmel stated the issue with the exclusivity is it will take them at least a year to get the land and building ready for occupancy. They have a team that does the office leasing and they have indicated they need a year for marketing. Mr. Kurnmel understood the Commission's reluctance to hold this land up for a year. Commissioner Orttel asked if they could give updates to the City on leasing percentages. Mr. Uhrharnmer stated he gets reports from Mr. Kurnmel on other properties they are leasing and they would be agreeable to this. Commissioner Orttel stated their concern is that it could sit for a year and nothing may happen and then the EDA will get the land back and have to try to sell it again. Mr. Kurnmel thought as o soon as everyone is in agreement they would start trying to lease the property. Mr. Kurnme1 did not think it would be difficult to lease once they started. He noted office space is prime today and there is a gap in normal office buildings. Mr. Uhrharnmer stated he needs to make sure he gets a concept layout done on the building so Mr. Kurnmel can go out and market it. Commissioner Jacobson stated on the bottom of the agreement it says the buyer is Town Center Companies but Northstar is not listed at all and if something were to get done, Northstar gets paid. Mr. Uhrharnmer stated they take the risk to make sure the building gets leased permanently. He noted that Northstar will not get paid if they do not find people to lease. Commissioner Jacobson asked if they have looked at all of the agreements that go with the property. Mr. Kurnmel stated they understand and will go along with the agreements. Commissioner Jacobson asked what is wrong with the $25,000 non-refundable deposit. Mr. Uhrharnmer stated they will be spending$40,000 to get the $25,000 back. They do not know what type of market is in Andover and they have a large amount at risk. o Commissioner Jacobson noted they have two prospects and if they do not do anything for six months and the EDA gets the property back the prospects will be gone. He stated the only way they will not get the $25,000 back is if the EDA gets the property back. Commissioner Trude asked if they will be looking at some of the businesses by Mercy Hospital along with some specialists for medical. Mr. Kurnmel reviewed what they are looking at for businesses. o Andover Economic Development Authority Meeting Minutes - July 18, 2006 Page 3 Mr. Dickinson noted they upped the price per square foot and they did some modification to exclusivity. He asked if the concern is the non-refundable $25,000, would the applicant, after six months, get an extension and would they be willing to agree to the $25,000 non-refundable deposit then. Mr. Uhrharnmer thought this would be very fair. Mr. Uhrharnmer stated one thing he did not understand on the exclusivity is when the money becomes real. Their plan is to try to spend some money and get this plan in the market. Commissioner Orttel asked if everyone has agreed to the increase in price besides the EDA. Mr. Uhrharnmer stated they have agreed to it. Mr. Kummel stated they carmot agree to exclusivity. Commissioner Orttel thought this seems like the EDA is dealing with a broker. Mr. Dickinson stated that is correct except they already have a prospective buyer. o Commissioner Trude asked what staffs advice is on the six months because she does not have a problem with it. Mr. Dickinson suggested they enter into the agreement including the six/six and taking out the limited exclusivity and putting in the exclusivity from the original proposal. Mr. Neumeister stated he likes what he conceptually described because it brings in the big building rather than the small buildings and brings in higher paying jobs to Andover. Motion by Trude, Seconded by Orttel, to approve the Letter of Intent Agreement including in it the six month no deposit and after six months an extension with $25,000 non-refundable deposit and taking out the limited exclusivity and putting in the exclusivity from the original proposal. Commissioner Jacobson asked ifthey could add to the motion, monthly reports regarding this. Mr. Dickinson stated they will request bi-monthly reports. Motion carried unanimously. REVIEW REQUEST FROM ANOKA COUNTY PARTNERS o Mr. Neumeister stated at the May 2, 2006 EDA meeting, Mr. David Piggott, representing Anoka County Partners, made a presentation to the EDA requesting funding to support their efforts to work to bring new businesses into Andover and the Anoka County area. Since that time, Mr. Piggott has prepared a 2006-07 Work Plan and has begun to proceed to implement it. At that meeting, the EDA deferred any decision on this request for funding and it is now being brought back for a final decision. Commissioner Jacobson stated Anoka County Partners was going to the Anoka County Board and requesting $150,000. He wondered if they received that and how many cities have said yes and how many have said no. o o o Andover Economic Development Authority Meeting Minutes - July 18, 2006 Page 4 I ()D, &:;0 Mr. Piggott stated the Anoka County Board has approved $158,008 and they are going to hear their reply August 25th as far as their level of participation. O..rn.!!.11&.R..L:L 'b-l6-Db Mr. Piggott named some of the cities in Anoka County that have agreed to add their amounts to their 2007 budget. He stated the only large ones he has not gotten to are Spring Lake Park and Lexington. Some of the more rural cities are going to wait until more come on board. Mayor Gamache asked if putting it in the budget means the Council has approved it or staff has added it to the budget. Mr. Piggott stated staffhas added it in their budget but the Council has not approved it yet. Commissioner Jacobson thought the work plan was very light the first year. Commissioner Trude stated her concern is they are about 98 percent residential and have a smaller business base so it is hard to justify the cost because the residents spend their money in other cities. Mr. Dickinson stated staff has gone through the big searches and they will probably not land them but it benefits Anoka County and brings in a tax base, which benefits them. Mayor Gamache asked if other counties have this type of economic development organization. Mr. Piggott stated they do but Minneapolis and St. Paul do not. In other parts of the country it is really prevalent. If the marketing plan is light it is because they do not have any money and carmot do national marketing without a budget. He stated once they get money in, the plan will progress. Commissioner Knight asked if they will be part of the Viking plan in Blaine which will benefit Blaine for the most part. How does that affect them and the rest of the County. Mr. Piggott stated they are a 501(C3) and carmot lobby. It is his personal belief that the Viking project is not going to be the large growth; it will be the light rail and the completion of Highway 65 upgrade and the sewer system in East Bethel. Commissioner Orttel wondered why the Anoka County Board will only appoint board members who would be donating and who the benefactors will be for the board placement. Mr. Piggott stated the board will oversee the operations and approve yearly plans. He explained why they want board members to also donate. The board members will not get any special privilege by being on the Board. Mr. Peterson stated there will not be any exclusivity with certain banks. Commissioner Trude stated she would like to see this go in the 2007 budget and see how it goes. She would like to see it come out ofTIF funds and will not take away from the road fund. Motion by Commissioner Trude, seconded by President Gamache, to include funding for the organization in the 2007 budget with funds coming from the TIF funds. o o o Andover Economic Development Authority Meeting Minutes - July 18, 2006 Page 5 Commissioner Ortte1 stated he would like to see updates regarding this. Ms. Twisto1 stated she is going to be voting against this because she does not think Andover would be benefiting enough from this and she could not support the expenditure at this time. Motion carried 4 ayes, 2 nays (Twistol, Jacobson). UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES Mr. Neumeister updated the Commission on development activities in Andover Station North. OTHER BUSINESS Funeral Home Proposal Mr. Neumeister reviewed the proposal with the Commission. Mr. Neumeister proposed the Funeral Home be placed on the reserved restaurant site. The Commission said no to the restaurant site being used. Commissioner Knight did not think it made sense to have it next to the ball fields either. Commissioner Orttel thought Site One could be split in two for the funeral home. Motion by Jacobson, Seconded by Trude, to adjourn. Motion carried unanimously. The meeting adjourned at 7:01 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary