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HomeMy WebLinkAboutMarch 21, 2006 c CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING March 21, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. c""?'b2/-CJ{:; 2. Approval of Minutes (3/8/0e..Regular Mtg.) 3. Purchase Agreement Review o 4. Verbal Update on Economic Development Activities 5. Other Business 6. Adjourn o o o o ~.~ Wli~ '-f-Lj-()(, ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MARCH 21,2006 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, March 21,2006,6:00 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 and Robert Nowak Commissioner Ken Orttel, Edward Schultz (Advisor to the EDA) Executive Director, Jim Dickinson Community Development Director, Will Neumeister Others Absent: Also present: APPROVAL OF MINUTES February 21,2006: Correct as written. MOTION by Jacobson, Seconded by Knight, approval of the Minutes as written. Motion carried unanimously. PURCHASE AGREEMENT REVIEW Mr. Neumeister stated Mr. Casey has asked to modify the purchase agreement for purchase of Lot 2, Block 3, Andover Station North. The reason he would like to change it is one of the potential buyers he had lined up for the multi-tenant building decided not to pursue the venture. Mr. Casey would still like to proceed with purchasing enough land to build a 24,000 square foot light industrial building. The original proposal was to build 31,000 square feet with three different businesses occupying the building. Mr. Casey has indicated that he would not need as much property as was originally planned for Lot 2, and he would like to move the lot line between Lot 2 and 3 approximately 35 feet west of where it is currently located. Each parcel would be equal in size and Mr. Casey feels that this will allow him to build the same size building on the second site and not incur additional architectural fees. He would still like to obtain an option of the site to the east of Lot 2. Mr. Neumeister reviewed the revised purchase agreement with the Commission. Mr. Dickinson indicated there would also be a non-refundable deposit. Mr. Nowak wondered how long the option would be. Mr. Neumeister stated it would be for one year. o Andover Economic Development Authority Meeting Minutes-March 2], 2006 Page 2 Commissioner Jacobson wondered if they could leave the proposal as is. Mr. Casey stated he would not mind doing this but there could be a problem with the financing and the third business has decided to retire. He stated he would not have a problem with leaving it as is but he did not know if the financing agent would agree to this. Commissioner Trude wondered if Mr. Casey has found a floor business yet because she thought one would work well in Andover. Mr. Casey stated he has not. Commissioner Knight wondered if the second building would be a home center also. Mr. Casey stated it would. Mr. Neumeister indicated the new layout would work for the parcels. Commissioner Jacobson stated there is a cost to the EDA for reconfiguring the lots and doing a new survey. He thought the additional cost to the EDA should be reimbursed. Commissioner Trude wondered if they would be making this up with the higher cost. Mr. o Dickinson stated they would recoup some of the costs. Commissioner Trude did like the mirror image buildings because that is what they see in other business parks. Commissioner Jacobson asked what the price is if Mr. Casey were to sign now. Mr. Neumeister stated it is $2.60 per square foot plus park dedication fees and assessments. The new price per square foot would be $2.80. Commissioner Trude wondered what building would work better for Mr. Casey. Mr. Casey stated the smaller building would work better in acquiring the businesses and he thought leaving the price the same on the first lot and then raising the fee on the second lot to the $2.80 per square foot would be best. Commissioner Jacobson stated that is assuming Mr. Casey is the purchaser of the second lot. Mr. Casey stated the EDA would still have the $10,000 non-refundable deposit. Mr. Nowak wondered if that would be in the cost of the property if Mr. Casey purchased the property. Mr. Neumeister stated it would. Mr. Nowak. stated the EDA would not recoup their costs unless the costs would be included in the new price per square foot. Mr. Dickinson stated they could do that. o Commissioner Trude stated she would be concerned with this if Mr. Casey did not pull permits this year. Mr. Casey stated he wanted to get certificates of occupancy by the Fall of2006. Mr. Nowak. wondered if the cost of moving the line would be more than $10,000. Mr. Neumeister did not think so. He thought this would all be done on computers and would C Andover Economic Development Authority Meeting Minutes-March 21,2006 Page 3 probably be around $1,000 in costs. Commissioner Trude stated her concern with raising the price is that Mr. Casey would be paying almost as much for this parcel, a less desirable piece ofland, as Mr. Rudnicki is paying. Mr. Neumeister reviewed the costs with the Commission. Commissioner Jacobson noted his suggestions to the Commission indicating he would want $2.80 a square foot along with first refusal option and a ten thousand dollar non-refundable deposit. Mr. Dickinson thought there may be some value in getting mirror image buildings. Mr. Casey stated he would need to go to his banker to see if this would work. Commissioner Knight stated he would not have a problem extending the drop dead letter by a week, if Mr. Casey would need additional time. Mr. Casey stated he would need to go back and renegotiate this with the tenants of the building to see if this would work for them. o Commissioner Trude stated she liked the idea of an option for this because it will allow Mr. Casey to go out and market the areas. The Commission discussed different options for the land and surrounding parcels. The Commission decided they would not want to split the parcel any more and make it smaller than it already is. Commissioner Knight stated he would not have a problem with staying at $2.60 a square foot, if they passed on the costs to the parcel next to this. Commissioner Jacobson stated he would be willing to keep the $2.60 until the next meeting and if a decision is not made by Mr. Casey by then the cost would go up to $2.80 a square foot. President Gamache thought once Mr. Casey's and Mr. Rudnicki's buildings are up the other parcels prices will go up. He stated he liked Commissioner Jacobson's idea about the two-week price stay. Mr. Neumeister stated they need to have a base price for the second parcel and he thought the agreement indicated that along with an escalator. Mr. Dickinson stated staffwill negotiate with Mr. Casey in the next two weeks on either an option or right of first refusal on the second parceL o ANDOVER STATION NORTH - TOWNHOME PORTION OF DEVELOPMENTIBRUGGEMAN HOMES Mr. Neumeister stated Bruggeman Homes wants to shorten the units and make them one level single unit townhomes.Instead of eight units, they will have seven units for a total of 28 units instead of the original proposal of 32 units. They will be losing four units. The Commission o o o Andover Economic Development Authority Meeting Minutes - March 21, 2006 Page 4 agreed with this plan and thought it would look good. VERBAL UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES Mr. Neumeister reviewed the Andover Station North parcels. He stated they are still working with the Play Venture parcel for the sports facility. Parcel two on Jay Street is being discussed to possibly split it into four separate parcels. He stated they are still discussing with Mr. Howard regarding the City Code and building phases. The parcel south of the wetland is being discussed with a business owner from Ramsey and there will probably be outside storage on this site. Commissioner Knight stated he would be concerned with what is going to be stored outside. He stated he is concerned with the height of fencing. Mr. Dickinson stated they could restrict the height. Mr. Neumeister thought shingles would be stored outside. Mr. Neumeister stated he keeps approaching people on the restaurant site. He's encountered negative attitudes but he will keep trying. Commissioner Trude stated they could wait on the restaurant site until after some of the businesses come in and build. She thought a restaurant would want to come in once the area shows activity. OTHER BUSINESS Commissioner Jacobson wondered how the bowling alley is going. Mr. Dickinson updated the Commission on the bowling alley. Motion by Jacobson, Seconded by Trude, to adjourn. Motion carried unanimously. The meeting adjourned at 6:55 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary