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HomeMy WebLinkAboutJune 20, 2006 o o o 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.C1.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING June 20, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (5/16/06 Regular Mtg.) 3. Approve Relocation Benefit Payment - Charles Mistelske (Commercial Auto Parts) 4. PUBLIC HEARING - Land Sales at Andover Station North 5. Letter offutent - Review Funeral Home Proposal (Continued) 6. Letter offutent - Review Town Center Companies/ Northstar Partners Proposal 7. Purchase Agreement/Closing Updates 8, Other Business 9. Adjourn o o o CJ1lfu.l~ ()JJ WVl~ 'l-(<?' ~'f ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JUNE 20, 2006 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Vice President Julie Trude, June 20, 2006, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota Present: President Mike Gamache (arrived at 6:05 p.m.), Commissioners Mike Knight, Ken Orttel, Julie Trude; Voting resident members Joyce Twistol and Robert Nowak Commissioner Don Jacobson, Edward Schultz (Advisor to the EDA) Executive Director, Jim Dickinson Community Development Director, Will Neumeister Others Absent: Also present: APPROVAL OF MINUTES May 16, 2006: Correct as written. MOTION by Knight, Seconded by Orttel, approval of the Minutes as written. Motion carried nnanimously. APPROVE RELOCATION BENEFIT PAYMENT - CHARLES MISTELSKE (COMMERCIAL AUTO PARTS) Executive Director Dickinson stated in June 2005, Mr. Charles Mistelske made a claim of some $400,000 in additional relocation benefits related to the EDA's acquisition of his Commercial Auto Parts property. The appointed hearing examiner conducted a contested hearing on April 19, 2006. After the contested hearing and a detailed review by the hearing examiner, the examiner has concluded that Mr. Mistelske is entitled to an additional award of $42,500 for some storage expenses during the period of June 1998 through October 1998. All other claims made by Mr. Mistelske were denied. The EDA's legal counsel is recommending payment to Mr. Mistelske of $42,500 as directed by the hearing examiner. The payment would be from the TIF Project Fund, which currently has a legal defense reserve fund balance available for the payment. Commissioner Orttel wondered if this is the only issue for this case out there at this time. Mr. Dickinson stated it is the only active claim and an appeal would be Mr. Mistelske's last one ifhe were to file. o o o Andover Economic Development Authority Meeting Minutes - June 20, 2006 Page 2 President Gamache arrived at 6:05 p.m. Motion by Orttel, Seconded by Trude, approval of allocation of $42,500 to Mr. Mistelske. Motion carried unanimously. PUBLIC HEARING - LAND SALES AT ANDOVER STATION NORTH Community Development Director Neumeister stated the City Attorney has advised the EDA that when land is sold in Andover Station North, a public hearing is necessary. It is appropriate to hold the public hearings for the land sales to Louis Rudnicki for a retail development and also to Michael Casey for a light industrial development now that the purchase agreements have been put into final form and signed. Motion by Trude, Seconded by Knight, to open the public hearing at 6:05 p.m. Motion carried unanimously. No one wished to address the EDA. Motion by Knight, Seconded by Orttel, to close the public hearing at 6:05 p.m. Motion carried unanimously. Motion by Knight, Seconded by Trude, to proceed forward with the closing on the two properties as discussed in the staff report. Motion carried unanimously. Commissioner Trude asked staff to check with City Attorney Hawkins if they were only supposed to authorize this item to go forward because she would hate to see something go wrong. LETTER OF INTENT -REVIEW FUNERAL HOME PROPOSAL (CONTINUED) Community Development Director Neumeister stated on May 16, 2006, a letter of intent was brought to the EDA related to a funeral home and crematorium proposal. The letter was submitted by Daniel DeShaw for a portion of Lot 1, Block 2, Andover Station North. Commissioner Trude stated when she read Bruggeman's letter, it indicated they already have some issues they have to deal with in regard to this property. She thought if this issue stood alone, it may not be such a big issue but with two other issues, it may be too much for the homeowners and builders to handle. She would like to see staff work with the applicants on another site if any are available. President Gamache wondered if they want to adjust the list to let the funeral home fit somewhere else. Commissioner Trude stated she was not interested in changing the guidelines for Andover Station North. o o o Andover Economic Development Authority Meeting Minutes - June 20, 2006 Page 3 Commissioner Orttel stated he did not have a problem with this and he did not think: there was anything negative and people would not even know a crematorium was there. President Gamache agreed and thought it was a perception of people. He thought the design fit in there nicely. He wondered if Great River would be willing to sell a portion of their land on Bunker Lake Boulevard for this. Commissioner Trude wondered if they would be able to get a restaurant in the area if there was a funeral home there. Mr. Nowak stated he was willing to allow this in the area until he heard there were objections from Bruggeman and he did not want to risk any deal with them. Commissioner Trude wondered if the funeral home would fit into the vacant lot by G-Will Liquor and would they be willing to rezone if necessary. Commissioner Orttel stated this is the nicest development within the entire park and he hated to run the applicant out of the city because of perceptions. Commissioner Trude asked why they would split the land when they have a proposal to buy the entire parcel and if they allowed this they would have an issue with sales of the townhomes. President Gamache stated he did not have a problem with this going in where proposed but he wondered if they could move it further to the east or north. Commissioner Orttel thought staff should look into the Great River site to see if they could sell some land for this. Mr. Russ Karach stated they picked that lot because eight to ten months ago there was a bank going in and a daycare and office space going in and now that has changed. Mr. Nowak wondered how the developer would respond to the issues Bruggeman has in his letter. Mr. Russ Karach stated a low key sign would not be an issue for them. He thought a crematorium was actually an asset to the location. There would not be a lot of traffic associated with this and they are willing to do cross easements to help out traffic control and do whatever the City wants with landscaping. He thought the Great River property would be overpriced and this is the second attempt at a location. Commissioner Trude wondered if they move the funeral home further to the east, would the parcel be large enough for the medical proposal because they need a base for customers in order to get a restaurant in. Mr. Nowak thought the first site along Hanson would be a good site for the funeral home. The developer thought there might be an issue with methane gas. Commissioner Trude stated they o o o Andover Economic Development Authority Meeting Minutes - June 20, 2006 Page 4 would need to vent the foundation. Ms. Twistol did not think a crematorium was such a bad thing. Commissioner Trude stated generally they do not have funeral services in a strip mall area; they are more accepted in a residential area President Gamache stated they have some options to look at and he thought they liked the general plan for the funeral home. LETTER OF INTENT - REVIEW TOWN CENTER COMPANIES/NORTHSTAR PARTNERS PROPOSAL Community Development Director Neumeister stated a letter of intent has been received from Town Center Companies, LLC in conjunction with Northstar Partners (as broker) to purchase Lot 1, Block 2, Andover Station North. They have indicated they would develop professional offices, including possibly a bank: on the site. The site is the large parcel at the southwest corner of 139111 and Hanson Boulevard. Commissioner Trude thought the deposit of $25,000 should be non-refundable. Commissioner Orttel stated he did not oppose the use but the deal is leaning toward the applicant's benefit. He stated what they are going to do for six months is try to sell the land and if they cannot then they are not out anything but the EDA would have to sit idle on the property for that amount of time. Commissioner Trude wondered if they could have the applicants come in and talk to them about this. Mr. Dickinson stated they do want to be an exclusive marketer of the property and he would check to see if they would be available to discuss this further. Commissioner Trude thought they would get quite a few employees in a large building that would be helpful in getting a restaurant in the area Mr. Dickinson discussed some of the developments Town Center has done. Commissioner Orttel stated what concerns him is it looks like they will be dropping the price to sell the parcel to this developer and he did not know if it was fair to the public because they would also be paying a brokerage fee. Mr. Neumeister stated they gave the developer a higher number than what is in the proposal. $4.75 a foot was what staff gave them for a price and they would be building a five million dollar building. Mr. Nowak wondered if they should go back to them at $4.50 a square foot and a non-refundable deposit. Commissioner Trude stated they should counter offer for more per square feet and then check on what they have done in the past and get references for them. o o o Andover Economic Development Authority Meeting Minutes - June 20, 2006 Page 5 Commissioner Knight stated the up side to this is they would get some restaurant companies. Commissioner Trude stated they may even get some Andover residents working in town. Commissioner Trude wondered if they could get the broker fees down. Mr. Dickinson stated the fee was originally on the entire price and staff asked them to take the park dedication fees out first. PURCHASE AGREEMENT/CLOSING UPDATES Community Development Director Neumeister updated the Commission on the activities going on at Andover Station North. OTHER BUSINESS There was none. Motion by Trude, Seconded by Twistol, to adjourn. Motion carried unanimously. The meeting adjourned at 6:59 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary