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HomeMy WebLinkAboutEDA January 16, 2007 1685 CROSSTOWN BOULEVARD N.W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.C1.ANDOVER.MN,US ECONOMIC DEVELOPMENT AUTHORITY MEETING January 16, 2007 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (1/2/07 Regular Mtg.) 3. Purchase Agreement Review (Dynamic Sealing Technologies) 4. Letter of Intent / Due Diligence Progress Review (Northstar Partners) 5. Update on Economic Development Activities 6. Other Business 7. Adjourn CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US . January 11,2007 Edward Schultz 3321 - 133rd Lane NW Andover, MN 55304 RE: Andover Economic Development Authority Dear Edward, The Andover Economic Development Authority (AEDA) would like to thank you for your past service and interest in the activities and goals of the Authority as an Advisor. Over the past few years the success of the Andover Station area has certainly shown that AEDA is committed to providing for quality commercial and industrial development to ensure a strong, viable and diversified tax base. The Authority at its most recent meeting has elected to proceed forward without having a Resident Advisor for the EDA and has direct staff to discontinue the delivery of agenda packets. If you would like to receive agenda notification beyond what is currently supplied in the Anoka County Union and on the City of Andover's web site www.ci.andover.mn.us do not hesitate in contacting me at 763-767-5110. Again thank you for your past service and interest in the activities and goals of the AEDA. "-- Jinipickinson ~xeputive Director Andover Economic Development Authority CC: EDA President and Commissioners CITY OF NDOVE @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US SUBJECT: Approval of Minutes TO: Economic Development Authority CC: Jim Dickinson, Executive Director FROM: Vicki V olk, City Clerk DATE: January 16,2007 INTRODUCTION The following minutes were provided by staff for approval by the EDA: January 2, 2007 Regular Meting DISCUSSION Attached are copies of the minutes for your review. ACTION REOUlRED The EDA is requested to approve the above minutes. Respectfully submitted, tLL. u.~ Vicki V olk City Clerk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JANUARY 2, 2007 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Vice President Julie Trude, January 2,2007,6:00 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 members Joyce Twistol and 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 December 5, 2006: Correct as written. MOTION by Jacobson, Seconded by Nowak, approval of the Minutes as written. Motion carried unanimously. Commissioner Mike Knight arrived at 6:03 p.m. President Mike Gamache arrived at 6:04 p.m. Commissioner Ken Orttel arrived at 6:05 p.m. ORGANIZATIONAL ITEMS Executive Director Dickinson stated the newly appointed Commissioners will need to sign an Oath of Office. The Commission consented to remove Mr. Schultz from the Commission. CONSIDER NEW LETTER OF INTENT (FOR LIGHT INDUSTRIAL LOT) The EDA is asked to review the attached "Letter of Intent" from Dynamic Sealing Technologies, Inc. indicating they would like to buy one of the light industrial parcels located in Andover Andover Economic Development Authority Meeting Minutes - January 2, 2007 Page 2 1 Station North. 2 3 Commissioner Knight wondered what the product is. Mr. Newneister indicated it is a machine 4 shop business. Ken & Jeff Meister, applicants, explained what their business is. They noted 5 they currently have a building in Ham Lake but have outgrown it. 6 7 Commissioner Trude understood the business has grown and done well and she wondered if in 8 the future they would want to be in a space where they could expand. Mr. Meister stated they are 9 looking five years in the future at this time. Oil and gas is a big factor for the applicant right now 10 and drives part of their business at this time. 11 12 Commissioner Trude thought they were looking at large truck delivery and she wondered if the 13 access would work for them. Mr. Meister stated they will be getting large truck deliveries into 14 the business and will use UPS to remove the product from the business. 15 16 Commissioner Jacobson asked if the road is covered in the cost of the land. Mr. Dickinson stated 17 it is factored into the price of the land. 18 19 Commissioner Jacobson noted the EDA cannot control preliminary plat approval, that is the 20 responsibility of the City Council. 21 22 Commissioner Jacobson thought the down payment of $5,000 should be made non-refundable in 23 case the applicant decides to back out of the project. Commissioner Orttel thought this is a moot 24 point because he did not think this would be an issue. Mr. Dickinson thought they could tighten 25 the due diligence a little bit. 26 27 Commissioner Jacobson stated they could make it refundable for six months and after six months 28 make it non-refundable. The applicant agreed with this. 29 30 Commissioner Orttel wondered if it is typical to drop the utilities at the edge of the property. Mr. 31 Newneister stated the funeral home has agreed to build the street and run the utilities across the 32 easement to the north property line. 33 34 Mr. Newneister stated the funeral home would need to bring in a pipe at least half the way onto 35 the lot and the City would cover the rest to extend the pipe to the other lot. The funeral home 36 would pay half the costs. 37 38 Mr. Berkowitz stated they would look at building a nine ton road to access the property. 39 Commissioner Trude thought they had an agreement with the funeral home to upgrade the access 40 road. Mr. Berkowitz stated the funeral home would pay for the access road and the City would 41 pay for the upgraded road. 42 43 Mr. Newneister stated the applicants want the option oflooking at precast material for the 44 construction of the building but the City would want some type of color variations and accents. Andover Economic Development Authority Meeting Minutes - January 2, 2007 Page 3 1 Commissioner Knight stated if they agree to precast, what will happen if someone else asks for 2 this type of material. Commissioner Jacobson stated he would be willing to look at precast tip 3 ups. Commissioner Knight stated if they allow this, they have to prepare themselves for 4 everyone else asking for their own standards. Commissioner Trude thought the retail standards 5 are different than light industrial standards. 6 7 Commissioner Orttel stated the appli~ant would still need to meet the City's architectural design. 8 Mr. Dickinson indicated this is correct. 9 10 President Gamache wondered if there will be a cross access agreement between the properties. 11 He wondered if the parking areas will meet. Mr. Neumeister thought they would want to put into 12 the agreements some sort of cross access agreement between the properties. He indicated the 13 funeral home has indicated they do not want to give up thirty feet for a cross access. 14 15 The Commission thought they should make an outside loop road to the east of the properties for 16 the remaining lots. Commissioner Trude thought they should have a cross easement agreement 17 for worker access. 18 19 MOTION by Jacobson, Seconded by Knight, to direct the City Attorney to prepare a purchase 20 agreement and send to the buyer for a signature with the changes discussed. 21 22 Commissioner Trude wanted the applicant to work with staff regarding the large truck access and 23 worker access. 24 25 Mr. Nowak asked since this is light industrial, are there any excessive noises or odors. The 26 applicant indicated there are not any. 27 28 Motion carried unanimously. 29 30 31 TIF CASH FLOW PRESENTATION 32 33 During the discussion of the 2007 EDA Budget, the EDA expressed an interest in wanting to 34 review the tax increment district cash flows for district 1-1 and 1-2. These are the districts that 35 are facilitating the development in the Andover Station area. 36 37 President Gamache thought this gave them the option to help out a business where needed, like a 38 restaurant in the area. Mr. Dickinson stated they do have a business subsidy policy in place. 39 40 Commissioner Trude thought they should get sidewalks in so they have as many connections as 41 possible on this site. She stated Hanson Boulevard is a busy street and should have a trail or 42 sidewalk on both sides of the street as far as they can. Mr. Dickinson indicated this would be 43 County Right-Of-Way along Hanson by the substation. 44 Andover Economic Development Authority Meeting Minutes - January 2, 2007 Page 4 1 Mr. Nowak thought in 2007 the EDA has to do something about the center dividing lane on 2 Bunker between Andover Station North and South. He thought it looks terrible and it should be 3 upgraded to look nice. Mr. Dickinson stated they discussed this with the two associations and 4 they do not want to contribute any costs to fix this. Mr. Berkowitz stated they need to go to the 5 County Highway Department and to the associations to see if they want to contribute annually to 6 maintenance and then the City would keep it up. 7 8 9 UPDATE ON EDA ACTIVITIES 10 11 Community Development Director Neumeister updated the Commission on EDA activities. 12 13 Potential Redevelopment Project - Mr. Neumeister stated they have talked to Chuck Peterson of 14 Kottke's Bus Service to discuss the options that they have if the Council does not want the rolloff 15 dumpster business. He stated they discussed looking at a land swap with Eddie's Auto Body. 16 This would take away the blight of the area because the EDA could not afford to buy Eddie's 17 outright and remove the business all together. 18 19 President Gamache stated with Eddie's Auto Body, they do not have the early start time which is 20 what they were concerned with the rolloffs but he was concerned with having it next to 21 residential because of potential junk cars sitting on the premises. 22 23 The Commission thought if the two businesses are willing to work together, they would look at 24 this further. 25 26 27 OTHER BUSINESS 28 29 There was none. 30 31 32 Motion by Trude, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting 33 adjourned at 6:58 p.m. 34 35 Respectfully submitted, 36 37 Susan Osbeck, Recording Secretary @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: EDA President and Board ~ Jim Dickinson, Executive Director ~ Will Neumeister, Director of Community Development c.u'L CC: FROM: SUBJECT: Purchase Agreement Review (Dynamic Sealing Technologies) DATE: January 16, 2007 INTRODUCTION The City Attorney and staff have prepared the "draft" of the purchase agreement for the land sale to Dynamic Sealing Technologies (see attached). DISCUSSION The buyer has asked for details to be incorporated that cover the truck access driveways and the costs associated with bringing private utilities to the edge of the property. The EDA is asked to review the details and decide if they are agreeable to the deal points. ACTION REQUESTED The EDA is asked to review the proposed language in the purchase agreement and make any changes they feel are needed. Respectfully submitted, Will Neumeister ~ Attachment Purchase Agreement PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on , 2007, by and between Andover Economic Development Authority, a body corporate and politic, 1685 Crosstown Boulevard NW , Andover, Minnesota, Seller and Dynamic Sealing Technologies, Inc., a Minnesota corporation, Buyer. 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: The East Half of Lot 1, Block 3, Andover Station North, Anoka County, Minnesota ("Property"), together with a non-exclusive easement for driveway purposes over the following described parcels: A. The north 50 feet of the west half of Lot 1, Block 3, Andover Station North, Anoka County, Minnesota. B. The north 50 feet of Lot 3, Block 3, Andover Station North, Anoka County, Minnesota. C. The east 50 feet of Lot 3, Block 3, Andover Station North, Anoka County, Minnesota. Seller reserves for itself, its successors and assigns a 50 foot easement over the South 50 feet of the East Half of Lot 1, Block 3, Andover Station North, Anoka County, Minnesota, for driveway and truck turnaround purposes. Said easement shall be for the benefit of Lot 3, Block 3, Andover Station North. 3. PURCHASE OF LOT WITH BUILDING OR VACANT LOT. (Check paragraph that pertains.) A. Buyer is purchasing the lot with an existing building. x B. Buyer is purchasing a vacant lot. 4. PRICE AND TERMS. The price for the real property included in this sale: Three Hundred Thirty Six Thousand Eight Hundred Eighty-Nine and 62/100 Dollars ($336,889.62). This price includes $303,200.66 for land and $33,688.96 for park dedication fees, which Buyer shall pay as follows: Earnest money of Five Thousand and no/100 Dollars ($5,000.00) by check, receipt of which is hereby acknowledged, and Three Hundred Thirty One Thousand Eight Hundred Eighty-Nine and 62/100 Dollars ($331,889.62) cash on or before July 16, 2007 DATE OF CLOSING. In the event that Buyer has not completed its due diligence within six months from the date of this Agreement as provided, said $5,000.00 shall become non-refundable to Buyer. 1 The purchase price is based upon a site estimated to be 86,591.50 net square feet and 12,171.50 square feet of driveway easement. Net square footage shall be determined by taking the gross square footage of the property described in paragraph 2 and deducting the existing utility easements located upon the Property. The price herein represents a per square foot price for the net area of $3.75 and $1.00 per square foot for the easement area. Said price includes the land price, park dedication fees and non-residential water area charges and assessments. After a survey of the property is completed by the AEDA as required in paragraph 8 herein and the actual gross square footage and net square footage are known, the price shall be adjusted to reflect the change in the area based upon the square foot price set out in this paragraph. 5. CONTINGENCIES. Buyer's obligations under this Purchase Agreement are contingent upon the following: (a) Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied with the environmental and soil conditions of the Property. (b) Buyer shall. have obtained all zoning, land use, signage, watershed, environmental and other governmental approvals and permits Buyer shall deem necessary to use the Property in the manner contemplated by Buyer, including, without limitation, a full building permit for a building conforming to Seller's design standards which Buyer determines can be built for a price acceptable to Buyer, in Buyer's sole discretion. (c) Buyer shall have determined that the roads, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes. In the event any of the above contingencies have not been satisfied or waived by Buyer on or before the date of closing, this Agreement shall be voidable at the option of the Buyer. 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the property without effective forfeiture provisions; C. Reservation of any mineral rights by the State of Minnesota; . D. Utility and drainage easements which do not interfere with existing improvements. 2 E. Declaration of Covenants filed by the Andover Economic Development Authority. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual DATE OF CLOSING. SELLER SHALL PAY on DATE OF CLOSING all special assessments for street, storm sewer, sanitary sewer, water main and water area charges levied as of the date of closing. BUYER SHALL PAY real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter. Seller makes no representation concerning the amount of future real estate taxes or of future speCial assessments. 8. SELLER'S OBLIGATIONS. (a) Seller warrants that there has been no labor or material furnished to the property in the past 120 days for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the warranty deed. (b) SELLER shall provide a survey of the property reflecting boundary lines, topographic indications, subdivision, easements, restrictions and other matters customarily reflected in a survey of real property. (c) SELLER shall cause all sanitary sewer, water and storm drainage utilities to be constructed to the edge of the property at Seller's expense. Such obligation shall not include the sanitary sewer and water connection charges to be paid. Said charges shall be the responsibility of the Buyer. (d) SELLER shall deliver the property with all mass grading completed. 9. BROKERAGE. Buyer and Seller acknowledge that Buyer's real estate agent, Ken Meister, is directly related to Buyer. Seller shall be responsible for a brokerage commission due to Coldwell Banker Burnett in the amount of six percent (6%) of the total sale price less park dedication fees included therein. 10. BUYER'S OBLIGATIONS. (a) BUYER shall construct a building upon the property which is in substantial conformance to the building identified in attached Exhibit A. Buyer's obligation shall survive the closing on this transaction. 3 (b) Buyer acknowledges that it has had (and will have) an adequate opportunity to inspect the Property and, upon closing the transaction contemplated by this Agreement, shall be deemed to have accepted that Property in "AS IS" and "WHERE IS" condition with any and all faults. Seller hereby disclaims all warranties, whether oral or written, express or implied, as to the Property's merchantability, fitness for a particular purpose, condition, type, quantity or quality. 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 12. POSSESSION. Seller shall deliver possession of the property not later than DATE OF CLOSING. 13. EXAMINATION OF TITLE. Seller shall, within a reasonable time after acceptance of this Agreement, furnish an Abstract of Title, or a Registered Property Abstract, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens. Buyer shall be allowed 30 business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 14. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention of make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner. as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. 4 C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good. faith, Buyer may seek, as permitted by law, anyone or more of the following: (1) Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer; (3) Damages from Seller including costs and reasonable attorney's fees, as permitted by law; (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; (2) Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: 5 (1) Seek damages from Seller including costs and reasonable attorneys' fees; (2) Seek specific performance within six months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 15. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 16. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 17. WELL AND FUEL TANK DISCLOSURE. Seller certifies that the Seller does not know of any fuel tanks or wells on the described real property. 18. INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE. Seller certifies that there is no individual sewage treatment system on or serving the property. 19. PAYMENT OF CLOSING COSTS. Each party will pay closing costs which are normally allocated of Buyers and Sellers in a real estate transaction. ,20. PARK DEDICATION FEES. Seller shall be responsible for payment of all park and trail dedication fees due the City of Andover for development by Buyer of the Property. 21. DRIVEWAY CONSTRUCTION AND MAINTENANCE AGREEMENT. The parties shall enter into a shared driveway construction and maintenance agreement prior to closing covering the easements described in paragraph 2. Said agreement shall provide that a nine (9) ton driveway shall be constructed by Seller across the easement described in paragraph 2. A. and the application of Class 5 aggregate on the easement described in paragraph 2. B. Seller or its buyer of said Lot 3 will be required in this agreement, at the time of sale, to provide a nine (9) ton bituminous surface on the easement described in paragraph 2.C. to allow for heavy truck turnaround. 6 The Andover Economic Development Authority agrees to sell the property for the price and terms and conditions set forth above. I agree to purchase the property for the price and terms and conditions set forth above. SELLER: BUYER: ANDOVER ECOMONIC DEVELOPMENT AUTHORITY DYNAMIC SEALING TECHNOLOGIES, LLC By: By: Michael R. Gamache, President Its: By: James Dickinson, Executive Director By: Its: 7 ~) l!i' 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: EDA President and Board Members CC: Jim Dickinson, Executive Director FROM: Will Neumeister, Community Develop SUBJECT: Letter of Intent / Due Diligence Progress Review (Northstar Partners) DATE: January 16,2007 INTRODUCTION The terms of the purchase agreement indicate that Town Center Companies would have a 6 month due diligence period to determine whether they could fmd enough interest in building a combination of office/bank space on Lot 1, Block 2, Andover Station North. The site is the large parcel at the southwest corner of 139th and Hanson Boulevard (see map). As the EDA may recall, Town Center Companies, LLC represented that they would work in conjunction with Northstar Partners (as broker) to purchase Lot 1, Block 2, Andover Station North and have a $25,000 refundable down payment that would become non- refundable at the end of the six months or they could opt to retract their letter of intent. DISCUSSION The staff is expecting to see a letter asking to refund the down payment and suspend the purchase agreement by January 18,2007. The broker had done a great deal of marketing to fmd very little interest in doing what had been proposed (see attached e-mail from Northstar Partners - Rob Youngquist). ACTION REOUESTED The EDA is asked to review the information and if the letter is received on or before January 19th, toaccept their refund request, authorize the City's fmance department to refund the $25,000. Secondly, the EDA should discuss the next course of action to pursue for the parcel. Staff will present some options at the meeting. Respectfully submitte~, / Will Neumeister a/cY-- Attachments Plat map (Andover Station North) E-mail from Northstar Partners Purchase Agreement IN NORTH ~ TION NORTH '!Xli I' -~I ,- . 'I ~I-- 2' ~_-f " " ~~ ~~ . . :S:S ,~ . . ~~ ~~ . . :s'S ~~ . . . . :S:5 t...i:t: , I:G- '(~ 1l().1 ..... {TCU ::_ _ _ ts t- IJI 5::::1 - ,> ~L- - 5 /l _ <n IV -. Ld , '" ~- _J , . ( ~~ ~~ - 11[=;- ~ ) l~L ~ .J g er.- I t -. ..._____ N. 11- -- /'" . / - . ....,(1 of thfl 5E1/4 of thtt NEI/4 f . - . / s: UntJ of thtl ND/4 of th" NEi/4 :,}:' ~ ~ 32. R. 24 .t " OUTLOT A.J2. H. 24 1111.58 ~J o,\Q V~I k..... <:)Iw) ~- I . . S89~;~.E: .~/ -'-- l . ." ~ / / OUTLOT B'~~f;~;c-::::. - . _ _________J_.____;_-MA TCHLlNE -------. . ... ~"----- \ ...>7"-c...r&e Sh~t~.1 01 J.siJMbJ.-.-. ~::-:-.":"."., ... 589'44"6-E ---.. 636.48 -. ~ I I I I I I 1 3 - November 22, 2006 Will, Here are the things I've done so far in terms of marketing the project in Andover: · Created flier and e-brochure (attached and link below) . Sent fliers to 455 businesses (list attached) . Created and placed a sign on property · Listed the property on mncar (minnesota commercial association of realtors) · Every other day follow up with banks to anchor building (First Western Bank, Klein Bank, Bank of the West, Premier Bank, Security State Bank, State Bank, Unity Bank Central, 1st Regents Bank, Anchor Bank, Bremer Bank, Citizens Bank, Community Bank, First National Bank, TCF, US Bank, & Wells Fargo) I've gotten some interest from two of them, but have had no luck with the other ones. I'm in the process of making follow up calls to the businesses on the mail list http://www.northstarpartners.neUbrochures!Andover!Andover.htm So, that is what has been going on for Andover Professional. So far I've received one call off the sign. Let me know if you have any more questions. Thanks, Robert J Youngquist Northstar Partners An Independently owned and operated member of the Cushman & Wakefield Alliance One Southwest Crossing 11095 Viking Drive, Suite 240 Eden Prairie, MN 55344 Direct 952.465.3316 Fax 952.465.3301 Mobile 952.200.8000 Sjrlfi/i d,fJ' ~~ ??'I<c;tl~ 46~'\ Mr. .Jim Dickenson Mr. Will Neumeister City of Andover, MN 1685 Crosstown Blvd. N. W. Andover, MN 55304 RE: Letter of Intent to Purchase Land By and between the City of Andover ("Seller") and Town Center Companies, LLC ("Buyer") made this 18th day of .July 2006. Location: Hanson Boulevard And .Jay Street NW Andover, MN 55304 Legal Desc. : Lot 1, Block 2, Andover Station North Approximate Area: 7.27 Gross Acres (316,676 s. f.) 6.77 Net Acres (294,858 s. f.) Price: $4.50 per sq. ft. for the net 6.77 Acres, ($1,327,055.40). $1.00 per sq. ft. for the easement area of.5 acres, ($21,780). Total purchase price for the 7.27 Gross acreages is $1,348,835.40. This price includes $1,226,214.40 for land and $122,621 for park dedication fees. Assessments for street, storm sewer, sanitary sewer, water main is included in the price. Final price will be adjusted once 1 survey is completed, but will be based on the above price per square foot. Terms: Buyer shall make a $25,000 refundable down payment that will apply to the final purchase price. If Buyer requests Seller to extend the Due Diligence by an additional six (6) months the $25,000 down payment will become nonrefundable, but will still apply to the final purchase price. Effective Date: .July 19, 2006 Taxes: All taxes shall be prorated as of the day of closing. The property shall be delivered by Seller free of any Assessments. Due Diligence: Buyer shall have six (6) months to complete its Due Diligence, including but not limited to environmental, survey, and economic viability. If Buyer is engaged in the process of entitlement, i.e. getting plans approved etc. Seller agrees to extend the closing date by an additional six (6) months. If Buyer cancels this agreement in writing during the first six (6) months of the Due Diligence period, the down payment shall be refunded to the Buyer within 10 working days of the City receiving written notice of cancellation. Closing conditions: As listed below: a. Approval of a preliminary plat on the property. Intended Use: Developer plans to develop professional office, with some services (potentially medical), to include all office type uses as well as banks" 2 Exclusivity: Brokerage: Seller agrees to remove the site from the market and will not entertain any other offers solicited or not during the Due Diligence time frame. Seller acknowledges Scott Kummel of Northstar Partners as the Buyer Broker and agrees to pay Northstar Partners a fee of six percent (6) of the gross sales price (less park dedication) at the time and place of closing. Both parties represent that they have not dealt with any other broker in connection with this transaction and agree to hold each other harmless for any claims arising from any other brokers. Buyer agrees to provide the Seller with bi-weekly updates of marketing and due diligence progress. Non- Binding: Each of the parties acknowledges that this is a Letter of Intent and shall not be binding until a written Purchase Agreement is executed by both parties. Buyer TO By: Its: Date: i r e(~6r /- jg,-D6 3 Andover Professional Building Jay Street & Hanson Boulevard, Andover, MN for lease P'-5 exclusive agent, we are pleased to O'~fer the follovving: Up to 45,000 Square Feet Available Development Highlights . Conveniently located on southwest corner of Jay Street and Hanson Boulevard . Perfect location in growing area . In proximity to numerous retail and restaurant offerings . Residential expansion occurring in surrounding area . Strong demographics: 2005 Estimated Population: 2005 Estimated Median Household Income: 2005 Estimated Average Household Income: WCL ASSOCIATES, INC 1 mile 3 mile 5 mile 144,251 $66,649 $79,500 6,543 $84,369 $105,072 48,125 $75,286 $91,828 For more information and inspection, contact: Rob Youngquist ryoungquist@northstarpartnetS.net 952-465-3316 Aaron Barnard, CCIM abarnard@northstarpartnetS.net 952-465-3372 *NORTHSTARI PARTNERS An independently owned and operated member of the lillll.~ CUSHMAN& .~t WAKEFIELD@ ALLIANCE I'Jo "nrran\y or f<2pres:n,ation, ';!xpress 0: implied. is made as to the aCGuraGY of the information contained herein, and same is submitied -subject to !:'!rmr,;. omissions, change of price, rental 0" oLher condilions, witl1drawal witl10ut noUc"". and to ,my sp8dfic listing condition.'), imposed by our f.lrindp8ls Northstar Partners 11095 Viking Drive, Suite 240 Eden Prairie, MN 55344 Andover Professional Building Jay Street & Hanson Boulevard, Andover, MN for lease ~ J1 .. ~ . :I: MainSt @ ..} Location Map For more information and inspection, contact: Rob Youngquist ryou ngquist@northstarpartnets.net 952-465-3316 Aaron Barnard, eerM abarnard@northstarpartnets.net 952-465-3372 *NORTHSTAR I PARTNERS An independently owned and operated member of the illlll.~ CUSHMAN & -.v" WAKEFIELD", ALLIANCE ~~o warm.nty or r<2:presen\ation, o;;xpress or implied, is made as to tile 8ccuracy {)fth~ information CGilt8ined hal'sin. nnd same is submlUed subject to erfOr3 omisslQl1s, changE: of price, f"mtal or other c,ondilionS,wHlldrawal with.oUI notice. .;nd to ;;Jny specific listing conditions, impcsE:d by our principals Northstat Partners 11095 Viking Drive, Suite 240 Eden Prairie, MN 55344 @ 1665 CROSSTOWN BOULEVARD N_W_ . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-6923 . WWW.CLANDOVER.MN.US TO: EDA President and Board CC: Jim Dickinson, Executive Director Will Neumeister, Community Development Director d-- FROM: SUBJECT: Update on Economic Development Activities DATE: January 16,2007 INTRODUCTION This memo is provided as a status update for all economic development activities related to Andover Station North that the staff have recently been engaged in. DISCUSSION The following is the update on activities: Rudnick's Retail Building - Mr. Rudnicki's dance studio has opened and they are expecting to fill a second bay with a tenant very soon. Bruggeman Homes - They are getting two of the single unit townhomes ready for the spring "Parade of Homes". Funeral Home Proposal- They are preparing a commercial site plan. The closing date is set for February 19,2007. . Day Care Proposal- Once again, the purchase agreement was prepared and mailed .out to Tracy Sonterre for signature. Still nothing heard from her. The closing date is set for March 19, 2007. If nothing is heard from her she stands to lose her $5,000 down payment. NBI Office Development - They are preparing site plan drawings and continue to market the office/retail space that they would like to build. They are looking at modifying the site plan to be able to take advantage of views of the wetland to the west. Town Center Companies -'- This is covered with a separate report to the EDA. MVP Baseball (John Larkin) - John Larkin recently contacted staff and indicated that he will now begin to pursue putting together a proposal for a building that may be slightly smaller than the 52,000 square foot structure they had previously indicated they wanted to build in the spring of2007. Attracting a Restaurant- 1. Staffhas met with the experts at Parasole Restaurant Corporation and Idein LLC to discuss what services they offer to do site analysis on the available sites in Andover Station North. Our goal is to have some idea from them as to what restaurant operators would think about the success potential of the sites available in Andover Station North. 2. After all the work of sending a mailing to 1,200 commercial real estate brokers, there is nothing to report. For about a month (November) it looked like three developers might show some interest in building a restaurant on the site closest to Bunker Lake Boulevard. The search for a restaurant continues to be elusive. Staff feels that we may just have to be patient and hope that there are more daytime jobs brought into the area and then it may be easier to get a restaurant interested. 3. QCTV was interested in getting some film on newsworthy items and staff prepared a short clip about the restaurants Andover currently has and the availability of land in Andover Station North for someone to locate a new restaurant. Hopefully someone is interested in the QCTV viewing area. Potential Redevelopment Project - Since the last EDA meeting, staffhas learned from the real estate brokers that Eddies Auto Body will consider nothing less than a $1.4 million to be bought out. Based on the square footage that he owns, that would be slightly over $14 per square foot. ACTION REOUESTED This is an informational update to the EDA only, no action is needed. Respectfully submitted, Will Neumeister wL 2