HomeMy WebLinkAboutEDA January 2, 2007
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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
January 2, 2007
6:00 p.m.
Conference Rooms A & B
AGENDA
1. Call to Order - 6:00 p.m.
2. Approval of Minutes (12/05/06 Regular Mtg.)
3. Organizational Items
0 4. Consider New Letter of Intent (for Light Industrial Lot)
5. TIF Cash Flow Presentation
6. Update on Economic Development Activities
7. Other Business
8. Adjourn
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1665 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-6923 . WWW.CI.ANDOVER.MN.US
TO:
Economic Development Authority
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CC:
Jim Dickinson, Executive Director
FROM: Vicki V olk, City Clerk
SUBJECT: Approval of Minutes
DATE: January 2,2007
INTRODUCTION
The following minutes were provided by staff for approval by the EDA:
December 5, 2006
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,
!l~' Odb
Vicki V olk
City Clerk
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
DECEMBER 5, 2006 - MINUTES
A Regular Meeting of the Andover Economic Development Authority was called to order
by President Gamache at 6:00 p.m., Tuesday, December 5, 2006 at the Andover City
Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota.
Commissioners Present:
Don Jacobson, Mike Knight, Ken Orttel, Julie Trude, Bob
Nowak; Joyce Twistol
None
Jim Dickinson, Executive Director
Dave Berkowitz, City Engineer
Will Neumeister, Community Development Director
Commissioners Absent:
Also Present:
A letter from the Andover Station Owners Association will be added as Item 5.
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APPROVAL OF MINUTES
November 21,2006
Motion by Trude, seconded by Knight to approve the minutes of November 21,2006 as
written. Motion carried on a 6-yes, I-abstain (Twistol) vote.
UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES
Mr. Neumeister noted that the dance studio in Mr. Rudnicki's building will be opening in
a few weeks; Bruggeman will be closing on their first unit on December 12, 2006 and on
the Povlitzki parcel on December 15,2006; the funeral home developer is working on a
site plan; the day care owner has not responded to any messages from staff but is
scheduled to close in March 2007; NBI Office Development is working on a site plan; the
Town Center Companies are working with two potential banks (their 6-month period that
the EDA gave them will expire on January 19,2006); MVP Baseball is working on their
plan preparation; there is nothing new to report on a restaurant; we have had some calls
regarding the light industrial.
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Commissioner Knight expressed concern that we are going to have a lot of vacant
buildings. Commissioner Trude felt that we should keep a parcel open for a fast food
restaurant as well as trying to attract a sit-down restaurant.
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Andover Economic Development Authority Meeting
December 5, 2006 - Minutes
Page 2
APPROVE COMMUNITY CENTER REFINANCING
Mr. Dickinson explained that the second bond sale was concluded by 9:50 a.m.,
December 5, 2006 and yielded a saving of$517,163.49. In January with the equipment
notes that we have to sell we're looking at refmancing the bonds on the water treatment
plan.
Motion by Jacobson, seconded by Trude to adopt the resolution authorizing the issuance
of $6,865,000 public facility lease revenue refunding bonds, series 2007. (Resolution
R004-06)
Motion carried unanimously.
DISCUSS LETTER FROM ANDOVER STATION OWNERS ASSOCIATION
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Mr. Neumeister noted that a letter has been received from the Andover Station Owners
Association stating they do not want to partner in the upgrading of the landscaping in the
median on Bunker Lake Boulevard. One of the options for redoing the landscaping is to
use crushed granite with a limited number of shrubs. The cost of doing this would be
$45,000. Commissioner Trude stated that this reflects on our city and asked if it' s a TIF
qualified expense. Mr. Dickinson stated it is.
Mr. Neumeister stated staff would talk to the county about what they will allow, get an
estimate and come back to the EDA.
OTHER BUSINESS
Mr. Dickinson explained that there is an item on the City Council agenda to schedule an
EDA meeting for December 19th but he will recommend that it not be scheduled as there
is nothing to discuss.
It was noted that Edward Schultz, the advisor to the EDA, has not participated in any
EDA matters for several years. At the first meeting in January the EDA will consider
whether he needs to continue to receive packets and be considered as the advisor to the
EDA.
Motion by Trude, seconded by Jacobson to adjourn. Motion carried. Meeting adjourned
at 6:32 p.m.
Respectfully submitted,
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Vicki V olk, City Clerk
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755.5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO: EDA President & Commissioners
FROM: Jim Dickinson, Executive Director
SUBJECT: Organizational Items
DATE: January 2, 2007
INTRODUCTION
With the recent election various terms of Commissioners will be made. The terms will coincide
with that commissioner's City Council seat.
DISCUSSION
Attached is the Andover EDA membership listing with current term expiration. The listing will
be updated with terms for the Commissioners whose terms will coincide with their City Council
seat. The EDA should discuss whether. or not there is a need to change any of the officer
positions (president, Vice President, Secretary, Treasurer, and Assistant Treasurer).
Also, at the last meeting EDA meeting the EDA indicated that they would like to discuss whether
or not Edward Schultz, the advisor to the EDA, should continue to receive packets and be
considered as the advisor to the EDA.
ACTION REQUESTED
The EDA is requested to review the attached data and provide direction to staff.
Attachment
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Andover Economic Development Authority
Public Copy
Mike Gamache - President VOTING RESIDENT MEMBERS
2815 - 134 Avenue NW
Andover, MN 55304 Robert Nowak, Sr.
H. 757-6060 1306 - 141 Lane NW
Email home - cmgamache(a),ci.andover.mn.us Andover, MN 55304
H.434-4371
Term Expires 1-2-07
Term Expires 1/1/08
Don Jacobson - Secretary Joyce Twistol
13335 Uplander Street NW 1518 139th Lane NW
Andover, MN 55304 Andover, MN 55304
H. 434-3401 H. 755-8488
Email address - cmiacobson(a),ci.andover.mn.us
Term Expires 1/1/08
Term Expires 1-2-07
Mike Knight - Treasurer ADVISORS to the EDA
4660-175th AveNW
Andover, MN 55304 Edward F. Schultz
H. 421-9247 3321-133 Lane NW
Email address - cmknight(a),ci.andover.mn.us Andover, MN 55304
H.421-7838
Term Expires 1-6-09
Term Expires 1/1/08
Ken.Orttel- Assistant Treasurer
2772 Bunker Lake Blvd NW
Andover, MN 55304
H. 755-8425
Email address - cmorttel(a),ci.andover.mn.us
Term Expires 1-6-09
Julie Trude - Vice President Jim Dickinson - Executive Director
13862 Holly Street NW City of Andover
Andover, MN 55304 1685 Crosstown Blvd NW
H. 862-2499 Andover, Mn 55304
Email address - cmtrude(a),ci.andover.mn.us 763-767-5110
Term Expires 1-2-07
Recordine Secretary .
Time Saver
Off-site Secretarial Service
File:g/data/everyone/comrnissions/EDA
Revised 4/29/05
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1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW,CLANDOVER,MN,US
TO:
EDA President and Board
Cc:
Jim Dickinson, Executive Director
Will Neumeister, Director of Community Development uJ1.-
FROM:
SUBJECT: Consider New Letter of Intent (for Light Industrial Lot)
DATE:
January 2, 2007
INTRODUCTION
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 Station North. The site that they are considering for their new business location is
the east Yz of Lot 1, Block 3, Andover Station North. This is the lot directly east of the funeral
home site. They would like to build a 24,000 square foot "precast tip-up panel" light industrial
building for their machine shop business. The EDA has previously discussed modifying the
Andover Station North Design Guidelines to allow this type of construction. A change in the
guidelines would be needed to give them the option of choosing break off type block or precast
tip-up panel construction materials. Staff supports the change provided it is clear that there
will need to be embellishments in the form of brick or colored break-off type block facings on
the front face of the building to be considered acceptable.
Dynamic Sealing Technologies is currently located in Ham Lake and have outgrown their
facility that was built only two years ago. They currently have 21 employees and all the jobs
are at a livable wage. This type of use (machine shop) has previously been authorized by the
EDA for acceptance into the area known as Andover Station North. They would not have
outdoor storage except for a dumpster enclosure and also a metal recycling bin. They have
considered the other light industrial sites at Andover Station North, and primarily based on
direction from staff, they have chosen to make an offer on the parcel east of the funeral home
site.
DISCUSSION
The attached "Letter of Intent" proposes a price that would average $3.41 per square foot for
the land (including the park dedication fee). The park dedication fee is shown as being 10% of
the purchase price. Considering that this parcel does not have prime street frontage on the
public streets, the City Staff believes that this is an acceptable offering price for the parcel they
would like to purchase. They anticipate that they will break ground in early spring 2007.
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If the EDA agrees with the use and type of building construction, they need to authorize the
City Attorney to prepare a purchase agreement containing the particulars. To make the site
ready for their proposed building there are going to be some expenses to the EDA associated
with providing thicker paving across the funeral home driveway; and also to bring city sewer,
water and storm water utilities to the site. Because the site is located where it is, there are no
utilities inunediately available and the access driveway will have to be built heavier across the
funeral home parcel and built to withstand fully loaded semi-truck weight. Therefore the City
will need to assure the buyer that these will be brought to their site at no cost, or they would
opt for the corner lot on the public street (Lot 2, Block 3). Staff believes this particular site is
more conducive to this type of use compared to the other lot and believes the EDA should
accept the offer and deal points that they have made.
ACTION REOUESTED
The EDA is asked to review the "Letter of Intent" from Dynamic Sealing Technologies, Inc.
and if the price is acceptable, direct the City Attorney to prepare a purchase agreement and
send to the buyer for signature.
Secondly, the EDA should discuss and determine if there is agreement on the use of "precast
tip-up concrete" as an allowable material for the Andover Station North Design Guidelines. If
so, then the motion should be made to modify the Andover Station North Design Guidelines to
be modified to allow the use of that material.
Respectfully submitted,
W.ll N . tl/c!I/-
1 eumelster
Attachments
Letter of Intent
Plat Map of Andover Station North
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December 26, 2006
Mr. Will Neumeister
City of Andover
1685 Crosstown Blvd. N.W.
Andover, MN 55304
RE: Letter of Intent to Purchase Land
SELLER: City of Andover
BUYER: Dynamic Sealing Technologies Incorporated
LEGAL DESCRIPTION: East Y2 of Lot 1 Block 3 of Andover Station North
AREA: 98,763 Gross square feet
86,591.5 Net square feet
12,171. 5 Easement square feet
PRICE: $3.75 per square foot for the net square feet
$1.00 per square foot for the easement square feet
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The total purchase price for the above named property is $336,889.62. This
price includes $303,200.66 for land and $33,688.96 for park dedication fees. This price
includes all and any assessments for street, curb and gutter, sidewalks, storm sewer,
sanitary sewer, and water main. Final sale price shall be adjusted by the above amounts
per square foot if final survey shows area amount other the area amount proposed in
Letter ofIntent.
TERMS: Buyer shall make a $5,000.00 refundable down payment that will apply toward
the final purchase price.
TAXES: All taxes shall be prorated from the date 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 at any point during the first six months of the Due Diligence period, the down
payment shall be completely refunded to the buyer within ten working days of receiving
written notice of cancellation.
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CLOSING CONDITIONS: Buyer shall receive approval of preliminary plat on the
property. At closing, seller shall convey a marketable fee title free of all leases,
mortgages and any other encumbrances and restrictions.
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INTEDED USE: Parties acknowledge that the intended use ofthe property would be to
construct an approximate 24,000 square foot industrial building for machine shop type
use with a certain amount of space for company office use.
EXCLUSIVITY: Seller agrees to remove site from the market and will not entertain any
other offers solicited or not during the Due Diligence or extended Due Diligence time
frame.
BROKERAGE: Seller acknowledges Coldwell Banker Burnet as Buyer Broker and
agrees to pay a six (6) percent fee on the total sale 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.
NON - BINDING: Both parties acknowledge that this is a Letter of Intent and shall not
be binding until a written Purchase Agreement is executed by both parties.
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BUYER:
Dynamic Sealing Technologies Incorporated
BY:~.
Title: '\> s-e > '
Date: \"L I ~11 '~lp
SELLER:
City of Andover
By:
Title:
Date:
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DYNAMIC SEALING TECHNOLOGIES
IRCDRPDRRiEO
December 26, 2006
Re: DSTI Company Description
To Whom It May Concern:
Dynamic Sealing Technologies, Inc.
January of 2002. DSTI is an
to as rotary unions. These
stationary point to a rotating
various kinds of equipment.
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Exam les of Industries
Oil & Gas processing equip
Automated packagingeqw.p
Machine tOQl$i<
Heavy
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"-""-':""'.""-':':-:-":"".'
',' oducttdov
'" Jmillion.
for'2007. .' ploy over 20 ,top p
January 2005.: A ver.i!ge pay is over$21.2
rangmg
ell over and we are
oyees locally, up from 7
with full benefits.
you for your consideration. Please ;f~elfreeto co'
comments. \<';:::':i';;':}/
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,,8 directly with and questions or
13941 Lincoln Street nE
Ham Lake, mn SS3D4
phone: '1G3.'18G.3'158
toll free: 8GG.'1DD.nSTI 13784J
faR: '1G3.'18G.9G'14
e-mail: info@dynamicsealing.com
www.dynamicsealing.coni
Dedicated to delivering a quality product on time.
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US
TO: EDA President & Commissioners
FROM: Jim Dickinson, Executive Director
SUBJECT: TIF Cash Flow Presentation
DATE: January 2,2007
INTRODUCTION
During the discussion of the 2007 EDA Budget, the EDA expressed an interest in wanting to
review the tax increment district cash flows for district 1-1 and 1-2. These are the districts that
are facilitating the development in the Andover Station area.
o DISCUSSION
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The Executive Director will discuss the attached spreadsheet with the EDA and answer any
questions the commissioners may have. Please keep in mind while you review the cash flow that
the column for "Potential Land Sales" is a prediction based on marketing progress and should not
be considered money in the bank!
ACTION REQUESTED
The EDA is requested to review the attached data, receive a presentation and provide direction to
staff.
Attachment
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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
CC: Jim Dickinson, Executive Directo
FROM: Will Neumeister, Community Development Director ev:t-
SUBJECT: Update on Economic Development Activities
DATE: January 2, 2007
INTRODUCTION
This memo is provided as a status update for all the economic development activities related.to
Andover Station North that the City staffhave recently been engaged in.
DISCUSSION
The following is the update on activities:
Rudnick's Retail Building - Mr. Rudnicki's tenant space for his wife's dance studio has
obtained a Certificate of Occupancy. He is planning a grand opening soon.
Bruggeman Homes - They have two of the single unit townhomes going up. They want to be
ready for the spring "Parade of Homes" with a rambler and also a two-story model They have
now closed on two of the attached townhomes. The Attorney General's Office fmally had all the
paperwork ready to allow the release of the institutional controls and the closing on the property
with Bruggeman finally happened (for the Povlitzki land exchange parcel) on December 15ili.
Funeral Home Proposal - They are preparing a commercial site plan. The lot split drawings
(wi boundary and topographic survey) have been forwarded to the client. The lot split was
approved by City Council on November 21 st. The closing date is February 19,2007.
Day Care Proposal- Once again, the purchase agreement was prepared and mailed out to Tracy
Sonterre for signature. There is still nothing in response. The closing date is set for March 19,
2007. Ifnothing 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 space that they would like to build.
Town Center Companies - Due Diligence Progress Review - The marketing staff at Northstar
Partners have indicated that they are working with two potential banks and have been calling the
Q
brokers to see if they can get some interest going in an office building. They have until January 19,
2007 to market the property. If nothing is done by then to indicate they will take down the property
then the EDA will have to go on to the next idea on what to do with the property. The primary goal
should be to at least get a bank to locate there. Since there is more interest in light industrial, the EDA
should potentially consider the balance of the site for more light industrial development. If that is
something the EDA would support, please indicate to staff that is something that should be pursued.
MVP Baseball (John Larkin) -- Nothing new to report. They are still looking at building
approximately a 52,000 square foot structure in the spring of 2007 and are doing their homework.
EPA Clearance of Institutional Controls - The work was done prior to the closing on the Povlitzki
exchange parcel. This took 14 months to complete and is now officially done.
Attracting a Restaurant - There is nothing new to report. Nothing has materialized from the three
developers that showed some interest in building a restaurant on the site closest to Bunker Lake
Boulevard. The search for a restaurant continues to be elusive. Does the EDA have any new ideas to
market the site? 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.
Attracting other Light Industrial - The staff has been in contact with three different industrial
prospects that are interested building on the light industrial lots located north of Louis Rudnicki's
retail center. As more details become available they will be shared One of the prospects is a machine
shop that currently is located in Ham Lake that needs more space. As you will recall, last year the
EDA discussed this potential use, and the consensus was that it would be acceptable as a light
industrial use in Andover Station North.
o
Potential Redevelopment Project - At the last Council meeting, a request from Nitti's Rolloff Service
was not viewed favorably as a site to be used for two new businesses with outdoor storage (dumpster
storage, and concrete saw cutting business). Within a couple of days after that meeting, Chuck
Peterson, one of the owners of Kottke's Bus Service, came to City Hall to discuss the options that they
have if the Council doesn't want the rolloff dumpster business. Staff met with him to explain that this
may be a perfect opportunity to work with Eddie's Autobody to move them to the site at the comer of
Jay Street and Station Parkway and share the site with the concrete saw cutting business. There was
some interest shOwn by Mr. Peterson to investigate what could be done to facilitate the relocation and
staff indicated the EDA would first need to provide staff direction to pursue anything further than just
talking conceptually about the potential redevelopment of the southeast corner of Jay and Bunker
where Eddie is currently operating.
The staff is asking for direction from the EDA as to whether there is any interest in developing a plan
of how the area might be redeveloped; how that might be accomplished; what costs may be entailed;
and whether to even begin discussions with Eddie regarding this possibility.
ACTION REOUIRED
This is an informational update to the EDA only, no action is needed.
Respectfully submitted, d-
Will Neumeister
o
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