HomeMy WebLinkAboutEDA February 6, 2007
o
1685 CROSSTOWN BOULEVARD N.W. 0 ANDOVER, MINNESOTA 55304 0(763) 755.5100
FAX (763) 755-8923 0 WWW.CI.ANDOVER.MN.US
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
February 6,2007
6:00 p.m.
Conference Rooms A & B
AGENDA
1. Call to Order - 6:00 p.m.
2. Approval of Minutes (1/16/07 Regular Mtg.)
3. PUBLIC HEARING / EDA Land Sales
a. Lot 1, Block 3, Andover Station North
0 b. Lot 24, Block 1, Parkside at Andover Station
4. Letter of Intent (Laura Heppner)
5. Listing Agreement / Northstar Partners
(Lot 1, Block 2, Andover Station North)
6. Time Extension Request (Nassau Builders)
7. Update on Economic Development Activities
8. Other Business
9. Adjourn
o
o
CITY OF
NDOVE
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
Economic Development Authority '\'"
Jim Dickinson, Executive Director
CC:
FROM:
Vicki V olk, City Clerk
SUBJECT:
Approval of Minutes
DATE:
February 6, 2007
INTRODUCTION
The following minutes were provided by TimeSaver Secretarial for approval by the EDA:
o
January 16,2007
Regular Meting (Orttel, Nowak absent)
DISCUSSION
Attached are copies of the minutes for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
~- U./b
Vicki V olk
City Clerk
o
01
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
022
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
044
45
46
47
48
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
JANUARY 16,2007 - MINUTES
A Meeting of the Andover Economic Development Authority was called to order by President Mike
Gamache, January 16,2007, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present:
Don Jacobson, Mike Knight, Ken Orttel, Julie Trude, Joyce
Twistol
Ken Orttel, Robert Nowak
Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
City Engineer, David Berkowitz
Others
Absent:
Also present:
Commissioner Jacobson wondered if they need to elect officers because at the last meeting they
did not elect any.
Motion by Knight, seconded by Jacobson, to keep the officers the same as 2006. Motion carried
unanimously.
APPROVAL OF MINUTES
January 2, 2007: Correct as amended.
President Gamache stated on page 4, line 20, he would like the last part of the sentence removed
because he did not think he said it. He knew it was said but could not recall who said it. "... but he
was concerned with having it next to residential because of potential junk cars sitting on the
premises." was removed.
MOTION by Trude, Seconded by Jacobson, approval of the Minutes as amended. Motion carried
unanimously.
PURCHASE AGREEMENT REVIEW (DYNAMIC SEALING TECHNOLOGIES)
The City Attorney and staffhave prepared the "draft" of the purchase agreement for the land sale
to Dynamic Sealing Technologies. 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.
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
O 18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
040
41
42
43
44
Andover Economic Development Authority Meeting
Minutes - January 16, 2007
Page 2
President Gamache wondered if one of the main issues is the driveway. Mr. Neumeister stated
this is one of the main issues along with the cross easement with the adjoining property and the
cross easement truck access along the south edge of the lot along with another access point to get
out to the street.
Mr. Neumeister stated paragraph two covers a lot of the easements. He thought they were
looking for a way in off of Jay Street across the northern portion of the adjacent lot and all the
way across the back lot and then straight south along the east.
Commissioner Jacobson stated since they own the lot to the north of this parcel, why are they
creating an easement on the property they are selling to the mortuary. Mr. Neumeister stated
there is a ponding area on the north edge of this property and a driveway cannot be placed there.
Mr. Dickinson indicated they are selling the property up to the protected wetland area. Mr.
Berkowitz noted there is a storm water pond along the property line.
Mr. Neumeister showed on the map where the pretreatment pond is located that goes into the
wetland.
Commissioner Knight wanted to make sure the trucks will have a way to loop around the
building. Mr. Neumeister showed how the trucks would maneuver through the area.
Commissioner Trude thought the owner would want to have a place for the employees to park so
that they would not interfere with the truck traffic.
Commissioner Jacobson asked if this goes beyond the six months they have to look at this, is
there a way the EDA can adjust the price. Mr. Dickinson indicated they could keep the deposit.
Motion by Jacobson, Seconded by Trude, approval of the Purchase Agreement for Dynamic Sealing
Technologies and authorizing the Executive Director to sign it subject to any minor changes
presented by the purchaser but in the minds of the President and Executive Director of the EDA are
not detrimental to the intent of the purchase agreement. Motion carried unanimously.
LETTER OF INTENT/DUE DILIGENCEPROGRESS REVIEW (NORTHSTARPARTNERS)
The terms of the purchase agreement indicate that Town Center Companies would have a 6 month
due diligence period to determine whether they could find enough interest in building a combination
of officelbank space on Lot 1, Block 2, Andover Station North. 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.
The staff is expecting to see a letter asking to refund the down payment and suspend the purchase
o
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
O 18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
040
41
42
43
44
Andover Economic Development Authority Meeting
Minutes - January 16, 2007
Page 3
agreement by January 18,2007. The broker had done a great deal of marketing to fmd very iittle
interest in doing what had been proposed. The EDA is asked to review the information and if the
letter is received on or before January 19th, to accept their refund request, authorize the City's finance
department to refund the $25,000. Secondly, the EDA should discuss the next course of action to
pursue for the parcel.
Commissioner Jacobson wondered if the EDA refunded the money, would they be out completely.
Mr. Dickinson indicated they would be out, including their marketing money.
President Gamache asked when the City gets their letter if staff would inquire about the reason why
they did not want the property anymore. He wondered if there is anything within the site that
stopped them from developing. Mr. Dickinson indicated there was feedback regarding businesses
interested, but not willing to sign, if a building was built.
Commissioner Jacobson thought this was a good example why they should make these deposits non-
refundable. The EDA has pulled any option to show and sell this to others.
President Gamache wondered if they expected with the Sheriff's Department expansion, would they
see additional businesses start to come in there. Mr. Dickinson indicated if the Sheriff's Department
were to include a court or something like that, then lawyers may start to move in.
Motion by Trude, Seconded by Knight, to accept the refund request and authorize the City's Finance
Department to refund the $25,000 if a letter of request is received according to the terms of the
agreement. Motion carried unanimously.
UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES
Community Development Director Neumeister updated the Commission on current EDA activities in
the City.
Mr. Neumeister stated he would like to fmd out if the Commission is willing to give up one of the
restaurant sites for a possible upcoming proposal for a business.
Commissioner Trude thought once they get in some of the businesses with employees that will help
the restaurant businesses. She stated people in Andover want another type of drive thru fast food
restaurant.
Commissioner Jacobson stated he agreed and did not want to give up on a restaurant site for a sit
down restaurant. Ms. Twistol thought it was too early to decide because with the Hanson
reconstruct, the area will be detrimental to businesses.
Commissioner Knight thought once the ball fields start, they will get more need in the area for food
vendors.
o Andover Economic Development Authority Meeting
Minutes - January 16, 2007
Page 4
1 The EDA did indicate that they would be willing to review other proposals as they come forward.
2
3 OTHER BUSINESS
4
5 There was none.
6
7
8 Motion by Trude, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting
9 adjourned at 6:41 p.m.
10
11 Respectfully submitted,
12
13 Susan Osbeck, Recording Secretary
o
o
o
o
o
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
DATE: February 6, 2007
INTRODUCTION
The City Attorney has advised that according to State Statute, the EDA must hold a
public hearing prior to any land sales in the redevelopment area known as Andover
Station North. Because Lot 24, Block 1, Parkside at Andover Station, was originally
platted as part of Andover Station North, that should also be included. The City has had
purchase agreements prepared and are pending closing dates on the parcels described in
this report and the legal notice that has been published at least ten days prior to the
meeting.
ACTION REOUIRED
The EDA is asked to hold a public hearing and take public comment on the proposed land
sales of the two parcels in "Andover Station North" and "Parkside at Andover Station".
Respectfully submitted,
u.d-
Will Neumeister
Attachments
Legal Notice
. Location Map
I' 600.04' 'vv
if89V6:38'E \ ~:. I
I zj
\ 1--15;:-
~ ------- ,.", t-------------T-~ ~E I
;' \ ! ~~~ I ~
,//1 \~ ~ ;,~ I
"'~'''-' I 'C I
r ~ 1 ~~ I~ 'I"-------m- ~,.oo m_____m__ : ~~ I
~ 3 J ~~ Ii I ~ I ; ~~ f-
,., Ba.399sq.lt.;;;J ~" I ,v
r '~:r i .: ~ i--.'OO--l
l ~~' j iii ~ k) I
~: .".,. 1 i,~ I' I ~ I
I I U [,~
~ ' J <1 :~:
"I "~,~.~~ or i I I
r J I j ~~ I
~ ! i ~ -----------~.----------------~ :~ J
,.,~.- .-______,_,~,V""y<._M'''''~~~=~-:~::-=----.-J - -1- W----'oo-- L
~ BUNKERrlAKE ~UlJ:VARD (;,~~ATE AlO HIGHWAY NO~' 1161 _ _ ~6lii:04 f(8:I':ci~1I' .' _ _
, I ^1,,~ /~ 'i~,i?,4'rI!,"r_>r-. N891U~nv~~t.~';'~!___~/ I
1...r\l'L 1..Ls:u>~",_~'i/X~'f;~?t~T'S=34. T.J2.R.24 (CO:"':~~T''[' ~STATE AID Ht(;HWAY ~~o. ~~5.',
'~~-'~l!r~~oIT.r.~241 - - - ~ ~ r- _ _ -,
-::=='
9W~::t-==-~- -~ ~
------~
o
to/;
11:<<
:f:f
..,,,,,
..
"
~~
~~
~~
s::S
1
f~
s::S
5~
o
\1.
\1\
'1'
'.1'
'.'
~~\\\
""~\'
", ,
\\\
1(\
",
t \
, ,
:If Andc
yof Ar
~
ANE--N1
/ -
, ./ OUTLOT B9~~:U~I.-
----_.~J___.__MA TCHLlNE----____
\ ~~../ (S<te Sh~ 2 oF.1 .5!'""':t~~ ---_____~
~
:i
o
o
~
~
I-~
W~ r
W~ I
0:::'
1-'
m:
~
~
r
I
I
I
~
..,
o
Lot 1, Block_3,
Andover Station North
m.DO
2
ltri.S96S<\.ft.
~~-
o
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
NOTICE OF PUBLIC HEARING
CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
o
The Economic Development Authority ofthe City of Andover will hold a public hearing
at 6:00 p.m., or as soon thereafter as can be heard, on Tuesday, February 6, 2007 at
Andover City Hall, 1685 Crosstown Blvd NW, Andover, for Land Sales for the Lot I,
Block 3, Andover Station North and also Lot 24, Block I, Parkside at Andover Station.
All written and verbal comments will be received at that time and location. A copy of the
proposed land sale information will be available for review prior to the meeting at City
Hall. Please contact Will Neumeister, Community Development Director, with any
questions at (763) 767-5140.
// y~ --/
<<.d'.a ~L=
Will Neumeister, Community Development Director
Publication date: January 26, 2007
o
o
o
o
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
Cc:
c,
EDA President and Board '", :--..." . /
Jim Dickinson, Executive Directo~ .
Will Neumeister, Director of comm~rt)rbevelopment ev=L-
Letter of Intent (Laura Heppner)
FROM:
SUBJECT:
DATE:
February 6, 2007
INTRODUCTION
The EDA is asked to review the attached "Purchase Agreement" from Laura Heppner (which is really a
"Letter of Intent") indicating she would like to buy one of the parcels located in Andover Station North.
The site that she is offering to buy is Lot 4, Block 3, Andover Station North (see attached location map).
This is the lot directly north of the First Regions Bank site. She would like to build a 12,500 square foot
retail center building of which about 30% would be occupied by their dry cleaning business with the
remainder ofthe space available for lease.
DISCUSSION
The attached "Letter of Intent" proposes a price of $5.48 per square foot for the land (including the park
dedication fee). The park dedication fee is shown as being $0.50 of the purchase price. They anticipate
that they will break: ground in early spring 2007.
Minutes of previous discussions on this particular site have been attached. In 2005 the EDA indicated that
they would like to hold out for a restaurant, however at a recent meeting the EDA indicated that they would
look at other proposals. If the EDA agrees with the use and the type of building construction, price, etc.
then the next step is to authorize the City Attorney to prepare a purchase agreement.
ACTION REQUESTED
The EDA is asked to review the "Letter of Intent" from Laura Heppner and determine if the proposed use
and price is acceptable. If so, please authorize the signing of the document and authorize the City Attorney
to prepare a purchase agreement.
Respectfully submitted,
Will Neumeister c::.v~
Attachments
Purchase Agreement (Letter of Intent)
Plat Map of Andover Station North
Minutes of ED A Meetings
//. ..,:..:.:.:.::....:::,.:-.... .--......-..... =::::::-::::.::-::::.:':\........:::==--=t-==::=~.::lI.-...~~~
~...~..~. FJtd..n1.....,.tlUt'i.D----
o
PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made on January ~ ~, 2007, by and
between Andover Economic Development Authority, a body corporate and politic, 1685
Crosstown Boulevard NW, Andover, Minnesota, Seller and Laura J. Heppner, and/or Assigns,
Buyer.
2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real
property legally described as follows.
Lot 4, Block 3, Parkside at Andover Station, Anoka County, Minnesota (property) (See
Exhibit A).
3. PURCHASE OF VACANT WT. Consisting of 72,923::1:: square feet (1.67::1::
acres) lot zoned commercial usage.
4. PRICE AND TERMS. The price forthe real property included in this sale: Four
Hundred Thousand and noll00 Dollars ($400,000) which Buyer shall pay as follows: Earnest
money of Five Thousand and no/100 Dollars ($5,000.00) by check to be deposited in the
account of Land Title, New Brighton, Minnesota, upon acceptance by Seller, receipt of which is
hereby acknowledged, and Three Hundred Ninety Five Thousand and no/100 Dollars ($395,000)
on or before May 31,2007, Date of Closing.
o
The purchase price is based on a site estimated to be 72,923::1:: sq. ft. of gross area. The
price herein represents a per square foot price of$5.48. After the survey of the property is
completed by the AEDA as required in paragraph 8 herein and the actual gross square footage of
the site is known, the price shall be adjusted to reflect the change in land area based upon the
square foot price set out in this paragraph. It is understood and agreed that $0.50 of the above
$5.48 per sq. ft. shall be applied towards the City park dedication fee.
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 at Buyer's expense and Buyer shall be completely satisfied with the environmental
and soil conditions of the Property. If a Phase One exists, a copy is to be provided to Buyer.
(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.
o
(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.
-2--
o
(d) Buyer shall obtain a Conditional Use Permit for a drive-thru window and dry cleaning
processing plant for usage on the property from the City of Andover before closing, and if not,
this agreement is null and void.
( e) Buyer being able to obtain conventional financing at Buyer's sole discretion and if not, this
agreement is null and void all earnest money to be returned to the Buyer.
(f) Contingent upon Buyer's examination and approval ofthe declaration of covenants filed by
Andover Economic Authority.
(g) Contingent upon inspection and approval of survey furnished to Buyer by Seller under
Paragraph B.
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. DEEDIMARKETABLE 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;
o
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 contemplated
improvements;
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. All previous years to be paid by the Seller.
SELLER SHALL PAY ON DATE OF CLOSING all special assessments levied or
pending for street (Jay Street NW and 13Sth Street and Ibis 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 future special assessments payable therewith and thereafter. Seller
makes no representation concerning the amount of future real estate taxes or of future special
o assessments.
-:J-
.
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 off site utilities, storm drainage, street lighting and
paving to be constructed, if not already completed, necessary to serve the
subdivision at Seller's expense. Such obligation shall not include the
sanitary sewer and water connection charges. Said charges shall be the
responsibility of the Buyer for connection to sanitary sewer and water.
D.
To the best of Seller's knowledge, the property does not presently contain,
and is free from all hazardous substances and/or waste, toxic and non-toxic
pollutants and contaminants, including but not exclusive to petroleum and
asbestos.
.
To the best of Seller's knowledge, the property has not in the past been
used for the storage, manufacture or sale of hazardous waste. To the best
of Seller's knowledge, no hazardous substances are located on or in the
vicinity of the property. The Seller has not stored, manufactured or used
hazardous substances on the property prior to selling.
The Seller has not transported or caused to be transported, any hazardous
substances to or from the property.
The Seller has not received or is aware of written or verbal notification
from any federal, state, county or city agency or authority relating to
hazardous substances on or in the property. To the best of Seller's
knowledge, no underground storage tanks have been or are now located on
the property.
9. BROKERAGE. Buyer and Seller represent that the Buyer and Seller are
represented by Integrated Real Estate Services, Inc. and a real estate commission of Six Percent
(6%) shall be paid to Integrated Real Estate Services, Inc. by the Seller at closing. Buyer to pay
no commission in this transaction.
.
10.
BUYER'S OBLIGATIONS.
-tJ-
o
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.
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 pennitted by law, any
one or more of the following:
A. 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 pennitted 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;
B. Rescission of this Purchase Agreement by notice as provided herein, in
which case th Purchase Agreement shall be null and void and all earnest
money paid hereunder shall be refunded to Buyer;
o
C.
Damages from Seller including costs and reasonable attorney's fees, as
pennitted by law;
D. Specific performance within six months after such right of action arises.
D. Iftitle 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
pennitted by law:
A. 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;
B. 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 defaJ"llts
in any of the agreements herein, Buyer may, as pennitted by law:
1. Seek damages from Seller including costs and reasonable attorney's fees;
o
2.
Seek specific performance within six months after such right of action
-~-
o
o
o
anses.
F.
Seller shall indeII111ifY and hold harmless the Buyer, its successors or assigns from
and against any and all liability arising from any and all claims, litigation or
governmental action involving any breech of the represented warranties and
covenants of One (1) - Seven (7) above.
This indemnification shall, specifically fines, penalties, sums paid in settlements or
claims or litigation, fee for a1llegal fees, consultant's, experts to be selected by
Buyer, cost of investigation, cleaning up, testing, removal and restoration. This
provision shall survive the closing.
TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. This
agreement to be accepted by the Seller and Buyer on or before February 9. 2007 or it is null and
void.
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 the mailing.
16. MINNESOT A 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 servicing 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 payments of all park
dedication fees due the City of Andover for development by Buyer of the Property.
-7-
.
The Andover Economic Development
Authority agrees to sell the property
for the price and tenus and conditions
set forth above.
SELLER: Andover Economic Development
Authority
By:
Michael R Gamache, President
By:
James Dickinson, Executive Director
Dated:
. By:
.
Dated:
/ / :A;"/ :L0ci7
-e-
I agree to purchase the property for
the price and terms and conditions
set forth above.
BUYER: Laura 1. Heppner, and/or
B~~
c;;;,;a J. HOP,,!:
Dated: I / ~~ iftJO J
,
PAl Andover-Heppem-1685-rev.l-07
o
EXHIBIT B
Declaration of Covenants filed by
Andover Economic Development Authority
o
o
P N Andover-Heppem-1685-rev.l-07
-!d-
o
Economic Development Authority Meeting
May 17, 2005 -Minutes
Page 2
Commissioner Trude aske~ what would be across from the lot north of Casey I and n.
Mr. Dickinson stated that area contains wetlands.
LETTERS OF INTENT/PURCHASE AGREEMENTS REVIEW
Mr. Neumeister explained that Mr. RUdnicki would like to develop a 7500 square foot
retail strip center with potential expansion.
Louis Rudnicki stated that at the present time the bank property is probably worth $5.40
per square foot with direct access to Bunker Lake Boulevard and Jay Street. The parcel
he is considering has frontage on Jay Street but no direct access. In addition to the sale
price, there will be another $30,000 for the road that will require maintenance and
repairs. He feels that $3.50 per square foot is a reasonable price. They would rather put
more money into the building than in the land. As part of an SBA loan., the building has
to be owner occupied and if they sell the building within 10 years there is a significant
penalty. He feels that his dance studio would be an asset to the community.
o
President Gamache asked if he would consider a front forward design or two buildings.
Mr. Rudnicki stated that because of the requirements of the SBA loan they would not be
able to do two separate buildings. However, a double fronted building would work.
Commissioner Trude asked what portion of the building the dance studio would be. Mr.
Rudicki stated 60%. Commissioner Trude asked what the other area would be. Mr.
Rudnicki stated that they are proposing a dry cleaner with on site processing.
Commissioner Trude asked if the dry cleaner would be 3000 square feet and the dance
studio 4500 square feet. Mr. Rudnicki stated yes. He also noted that a kick-boxing .
studio has expressed an interest as well as a chiropractor. The idea of a fast food
restaurant came up at the last meeting and there is room for that.
Commissioner Trude asked if Mr. Rudnicki would be willing to look at the site to the east
so this site could be preserVed as a restaurant site. Mr. Rudnicki stated that he would like
to find a way to make this work.
Commissioner Knight asked what the utilities cost is for this site. Mr. Neumeister stated
it's two million dollars to grade and build the road which comes to about $1.00 per
square foot.
o
Mr. Dickinson asked if 74,000 square feet is needed for this project. Mr. Rudnicki stated
that is probably more land than is needed. He asked Mr. Dickinson what they would do
with the rest of the land. Mr. Dickinson stated they are trying to figure that out. Mr.
Dickinson asked the EDA if they want staff to continue to work with Mr. Rudnicki on his
proposal.
~//--
o
Economic Development Authority Meeting
May 17, 2005 - Minutes
Page 3
Commissioner Orttel asked if these businesses have to pay area charges. Mr. Berkowitz
stated they pay area charges but not laterals.
Commissioner Trude Stated that this was going to be a restaurant pad. Mr. Neumeister
noted that he received a call from a party who would be willing to build a retail center
and would pay $5.00 per square foot.
Mr. Neumeister explained that at the last meeting he brought up the uses in the guidelines
and they do not include a dry cleaner with processing. Mr. Rudnicki stated that they are
not willing to let their request for a dry cleaning business get in the way of their coming
in here.
Mike Mulrooney asked the EDA to keep in mind that the building finish will be similar to
what is in Riverdale. The EDA needs to look at loan to value. Ifhe ends up paying more
than what the property is appraised at that is more money coming out of his pocket. If
the property costs get too expensive, they will affect marketability as far as getting
tenants.
o Commissioner Trude noted that they had a discussion on this at a previous meeting and
said it should be kept as a restaurant site.
Mr. Dickinson asked the EDA if they want staff to work with Mr. Rudnicki on either the
Oppidan I or Oppidan IT sites.
Commissioner Twistol asked if this is the first parcel to be sold in this area Mr.
Dickinson explained what is going on with the other parcels.
President Gamache stated that at this point he thinks the EDA is looking for something
different on this site.
Commissioner Trude noted that we need to have businesses that have jobs or the
restaurant is not going to make it.
Commissioner Orttel felt that the lots should be broken down into smaller sizes. He
asked why we don't have a sign out there that says ''Retail Sites Available".
President Gamache stated that the EDA is still interest in keeping the piece Mr. Rudnicki
is looking at for something different and staff should work with Mr. Rudnicki.
o
Motion by Trude, seconded by Knight to adjourn. Motion carried unanilnously.
Meeting adjourned at 7:00 p.m.
-}2--
o
Andover Economic Development Authority Meeting
Minutes-June 21,2005
Page 3
Commissioner Trude asked if the site where the strip mall area is similar to what they had open
in one. Mr. Neumeister stated that was around forty thousand.
Commissioner Knight asked how big the liquor store is. Mr. Neumeister stated it is about 12,000
square feet.
Commissioner Trude asked if this is similar to United. Mr. Neumeister stated it would be bigger
and then United would lease their area to something else such as a restaurant. Mr. Dickinson
stated you would license the liquor to the area and the business.
President Gamache stated the way it is drawn up for the liquor strip mall would have frontage on
Bunker. Mr. Neumeister stated that is based on the road to the west. If the road does not go in
there will probably not be any retail there. Mr. Dickinson stated they needed to get the road
otherwise the retail will go away.
Mr. Berkowitz stated the feasibility report will have two options for connection.
o
Mr. Rudnicki was present at the meeting to answer questions of the Commission regarding parcel
4.
President Gamache stated his hope was that Lot 4 would develop into some type of restaurant.
At this point he would want to try to stay with that piece as the restaurant site. Commissioner
Knight stated he would prefer a restaurant site also.
Commissioner Orttel wondered what the appraisal was on the property. Mr. Dickinson stated
they did not get an appraisal on that property yet.
Commissioner Orttel wondered why they could not put Mr. Rudnicki's plan on the Play Ventures
of Minnesota site. He wondered if it would be a possibility to subdivide the Play Ventures land.
Mr. Dickinson stated it could.
President Gamache stated the site on number four, what is the largest building that could there.
Mr. Neumeister stated if it is an L shaped building, it could be around 10,000 square feet but if it
was a restaurant, it would be smaller.
Commissioner Knight asked what the acreage is on parcel three. Mr. Neumeister thought it was
roughly an acre and a half.
o
Commissioner Knight asked when they are talking about a restaurant are they talking about a full
sit down restaurant with liquor or a family or fast food restaurant. Mr. Dickinson stated it
depended on what type of restaurant would want to come in. He did not think it would be a fast
food restaurant.
Commissioner Trude stated her opinion has not changed. She thought they were going to wait
-/3-
o
o
o
Andover Economic Development Authority Meeting
Minutes-June 21,2005
Page 4
for a restaurant.
Mr. Dickinson asked if the Commission would be open to using a broker for finding a restaurant.
Commissioner Ortte1 stated they would need to negotiate a price but he would be open to it.
Commissioner Trude stated they need to get in more daytime businesses for a restaurant to work.
Commissioner Trude wondered if they could use the back part of parcel three for Mr. Rudnicki
and shorten the strip mall. Mr. Neumeister stated they could look at doing this if they used the
zero lot line on this site like they did with the Casey site.
President Gamache thought parcel four would be a good site for a restaurant because when
Bruggeman is done, people will be walking along there all of the time and the ball fields will
bring in people and all of this will need a restaurant. He stated he would still like to have Mr.
Rudnicki in the area but he may want to consider another lot.
Mr. Dickinson recapped the area and what the EDA wanted for the area.
Commissioner Trude stated when dealing with the liquor parcel, she would be ok with it as long as it
is a moved use and not an additional use.
OTHER BUSINESS
Mr. Neumeister discussed with the Commission an idea for the area in front of Festival Foods.
Motion by Trude, Seconded by Ortte1, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:55 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary
--/~-
_.<J/~"
. --
./
~ I
I
-- 125 ~-
W
c!;(>-
Z~I-'~
0> Q):z: CC
UJW~Cl'"
~5ZS:~
:J:o~c
11I8<
-
bee.
t~~
L'"
~ -
<::>
City of Ar,
County of
34, Twp. ~
~ STA TION NORTH
J
I
I
I
I
I
~
Ie;
I"
I
I
I
I
I
I- ~ I
w;!:
w~
c:::
?-
m
~
Z
"
/-'
-.
h
!:1
I~
\
\
)
--
~, .~
. --- ../'
"',,-----N, Un. of th. SE1/4 of th~ NE/A of SlJc:. J4., i: J2: R. 2<1- 4r
/ .s: ""~ of tile NEi/4 of theNEt/4 ofStIf;, .u. r..12 R. 2<f.
/ OUTLOT A
-.-.-.
j 500.04
tJ'S89V6'38nE r-
8' \ ~ I
. ;1 \ __-- '5~~--~
'~J -----~ 1 ~ :
//1 \ i;,~ I
~f--------- -- ~--- H~ II
<o;D ~ -7
!ii ~ I ifl f-
~g ~ 1---- '50 --l
!l i ~ ~ [
00 C)
f i I ~ I
(\'~l' II ~5 I[
CD
I
I
~I
~i i I -7 I
i I I ~~ I
1 .6 -~ '00.00 ----------------:1 ~e J
."
~----SBS;8'3n:-----~.,..J I ----- 150 ----
1ke BOCIleYUnJ -......_-- -'-- . 6 5.14 ~ ==t L
BUNKER~LAKE S"'-t fJmi UtHlty ~fJ!lem6r1t S88"t8'J1"Ep&- Ooc. No f141388---_ -_ '" _- -M---:-."'-W
"' - T _EOU~ARO(COlJNTYSTAlEAJDHIGHwAYNO~, 1161 ",__,
j J;' I 716.21 600.04 "J4000 ..... l
! I"! 2 N89V4~37.W I N89TU'.mv-:"Q~ ~t>;,'t:,:m;;,/: /
/ . L.A}\E: t - 21""'\1 'I ~" ^ C)t"'"\ , It) of s~.:J.f.. r. .l4 R. 24---__...'"
\...LsUn fth95E'i/~~.j;-VDI\U tCO~~~T'/:::~'TAT~ AID 111t'''IIIA'A''' tl.J ",,--'
,~~"'~'r"'~\<'-l'~. ~ - ,i -:'~t;;';"~ ,,0.,0)
g.:; I I :J ~J I ., ~
'to [ 1 ' OCC .,.
'.001 I " ""/~"'" I I I CC ~- ~ ' ~~'T'm' I
' f"'It't'....VI'tIl'l I (~ v~ f"'IlJV111VI't
--! 71.57
'-.
Di
DeShaw
Funeral Home
...
135::s.00 r
,
, .
,
Ii l
lot.596 sq.tt.!
2;52 acres
I
.
,. i
l89"27"50~E I
1~8~~
~
. 71 S(j~q-
flZ<J~
~2.923 Sq.~
1.S7.Acres
-
L-ANE-
~
./
""'"
--
.-.-.
J
, (
Dynamic Sealing
'. Technologies
-,
I
I
I
I
I
1"1
~I
;!j
~I
I
I
1
I
I
zt'"
I
I
I
/ t:&- '
5
180,239 Sq.Ft.
4.14 Acnt3
I
1/
I~
\",
RLK - Ku'"
-Is--
SHEET 1 OF 3
o
o
o
1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO:
CC:
FROM:
SUBJECT: Listing Agreement (Northstar Partners)
DATE: February 6, 2007
INTRODUCTION
Northstar Partners would like the EDA to consider listing the property known as Lot 1,
Block 2, Andover Station North (see attached).
DISCUSSION
The previous six month due diligence period for Town Center Companies has expired
and the property is now available for sale. Since Northstar Partners is very familiar with
the site and who may be interested in developing it, it seems appropriate to give them a
chance to pursue the buyers that they have in mind.
The EDA is asked to review the details and decide if they would agree to give Northstar
Partners a six month listing agreement.
ACTION REQUESTED
The EDA is asked to review the proposed listing agreement and make any changes they
feel are needed. If satisfied, then authorize the EDA Executive Director and President to
SIgn.
Respectfully submitted,
Will Neumeister ~
Attachment
Listing Agreement
.J' .
...
o
o
o
EXCLUSIVE AGREEMENT
FOR SALE OF PROPERTY
THIS AGREEMENT is entered into this _ day of , 20_, by and between The City
of Andover ("Owner") and Northstar Partners LLC ("Northstar").
In consideration of the mutual covenants contained herein, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:
Owner hereby employs Northstar and grants to Northstar the exclusive right to negotiate a sale
of the real property described, on Exhibit A attached hereto ("Property") upon the terms and
conditions hereafter set forth. This Agreement shall apply to all portions of the Property.
The term of this Agreement ("Term") shall commence on the date hereof and end at midnight
on January 24, 2008.
Northstar hereby accepts said grant and agrees to use its continuing and good faith efforts to
effect a sale of the Property upon the minimum terms and conditions specified in Exhibit B or
such other terms as Owner agrees in writing.
NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT
OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER
AND ITS CLIENT.
It is further agreed that Owner shall pay Northstar a brokerage fee of six percent (6%) of the
gross sales price and an additional percent when an outside broker is involved (or
a Northstar broker or sales person other than the listing team of Scott Kummel, Aaron Barnard
and Rob Youngquist), for which the Property is sold or exchanged or upon occurrence of any of
the following conditions:
1.
The sale, contract for sale, exchange, or conveyance of the Property during the period of
this Agreement by Northstar or any_other person, including but not limited to Owner, or
any other agent or broker not a party to this Agreement, in accordance with the price,
terms or exchange as set forth herein or as otherwise consented to by Owner.
2.
A buyer is procured, whether by Northstar, Owner or anyone else, who is ready, willing,
and able to purchase the Property at the price and terms set forth above and Owner
refuses to sell.
3.
Owner agrees to sell the Property before this contract expires, and Owner refuses to
close the sale.
4.
Owner grants an option to purchase the Property ("Option Sale"). However, in the event
of an Option Sale, the parties agree that the brokerage fee arrangement and schedule
shall be as follows: Owner shall pay Northstar a sales commission in the percentage
provided herein based on the price paid for the option and for any extensions thereof.
This commission shall be paid upon receipt by Owner of any such payments under the
Option Sale. In the event such option is exercised, whether during the term of this
An. independently owned and
operated. member of the
11111'. CUSHMAN &
~..,~~ WAKEFIELD@
A.llIANCE
11095 Viking Drive, Suite 240, Eden Prairie, MN 55344
952-465-3300 Phone 952-465-3301 Fax
..;~
o
~~i?c.IAI
Agreement, or thereafter, Owner shall also pay Northstar a sales commission on the
gross sales price of the Property in accordance with the provisions of this Agreement.
Notwithstanding the foregoing, to the extent that all or part of the price paid for the option
or any extension thereof under the Option Sale is applied to the sales price of the
Property, then any commission previously paid by Owner to Northstar on account of
such option payments shall be credited against the commission payable to Northstar on
account of the exercise of the option.
5. During the term of this Listing Agreement or within ninety (90) days after the expiration of
this Listing Agreement: (i) the Property is acquired by a public authority; (ii) an
agreement to acquire the Property is reached with a public authority; or (iii) a public
authority institutes eminent domain/condemnation proceedings to acquire the Property.
6. Owner contributes or conveys the Property or any interest therein to a partnership, joint
venture or other business entity during the term of this Agreement in lieu of a sale of the
Property during the term of this Agreement and then the commission shall be payable on
the listed gross sales price.
7. Owner is a partnership or other business entity and an interest in the partnership or
other business entity is transferred, whether by merger, outright purchase or otherwise in
lieu of a sale of the Property during the term of this Agreement and then the commission
shall be payable on the listed gross sales price.
o
8.
Within the "Override Period" (as defined below), Owner enters into any of the
transactions set forth in clauses 1, 4, 6 or 7 above with anyone who has made an
affirmative showing of interest in the Property by responding to an advertisement or by
contacting Northstar or has been physically shown the Property by the Northstar. It is
understood that Northstar shall not seek to enforce collection of a commission under this
Paragraph 8 unless the name of the prospect is on a written list given to Owner within
seventy-two (72) hours after expiration of this Listing Agreement ("Protected List"). The
Protected List shall include the following language:
IF YOU RELlST WITH ANOTHER BROKER WITHIN THE OVERRIDE PERIOD AND THEN
SELL OR LEASE YOUR PREMISES TO ANYONE WHOSE NAME APPEARS ON THE LIST,
YOU COULD BE LIABLE FOR FULL COMMISSION TO BOTH BROKERS. IF THIS NOTICE
IS NOT FULLY UNDERSTOOD, SEEK COMPETENT ADVICE.
"Gross Sale Price" as used herein shall mean the total amount to be paid or value of other
consideration given for the Property including assumption of existing liabilities or the listed gross
sales price, as the case may be.
"Override Period" shall mean the period of time within one hundred eighty (180) days after the
expiration of the Term.
o
Owner hereby authorizes Northstar to disburse part of Northstar commission, which may
become due and payable hereunder, to any cooperating broker, including brokers solely
representing buyers of the Property, in accordance with industry practice or agreements
between Northstar and any such brokers.
An independently owned and
operaied. member- of the
IIIIII'~ CUSHMAN &
.~'~f WAKEFIELD@
AlliANCE
11095 Viking Drive, Suite 240, Eden Prairie, MN 55344
952-465-3300 Phone 952-465-3301 Fax
(i..
'"
o
o
o
*PiPeWlAI
Northstar is authorized to advertise the Property in whatever manner it deems appropriate and
to contact such other brokers as may, in Northstar's sole judgment, assist in concluding a sale
of the Property. Northstar is further authorized to place signs in and about the Property if, in
Northstar's sole opinion, such signs would facilitate the leasing or sale of the Property.
OWNER AGREES THAT IT SHALL:
1. Furnish Northstar with pertinent information regarding: (i) the status of established
tenants, including rent rolls which, among other data, set forth lease expirations; (ii) the
current real estate taxes of the Property; and (Iii) the environmental status of the
Property, including information on wells or septic systems, above or below ground tanks,
and environmental reports which have been performed with respect to the Property.
2. Furnish to Buyer an Abstract of Title, or a Registered Property Abstract, certified to date,
to include proper searches covering bankruptcies and state and federal judgments and
liens, and to execute or cause to be executed a deed of general warranty conveying a
marketable title to the Property to the Buyer and any further documents as may be
required to consummate the sale to Buyer in accordance with the terms above
designated or with the terms to which Owner may hereafter consent.
3. Forward to Northstar any inquiry of any sort received with regard to the sale of the
Property or any portion thereof.
Owner warrants that it is the record fee Owner of the Property and has the legal authority to
enter into this Agreement. Owner agrees to hold Northstar harmless from any liability,
damages, costs, and expenses arising from any incorrect information supplied by Owner.
Owner does not request Northstar to arrange for closing services. Owner will separately
arrange for its closing services arising out of the sale of the Property.
NORTHSTAR PARTNERS LLC AGREES THAT IT SHALL:
1. Endeavor to procure buyers by all reasonable means available, including direct
solicitation, consultation, and marketing presentations, processing of inquiries received
from any and all sources and advertising of the Property.
2. Provide Owner with reports detailing the status of the sale program as such times as
Owner shall reasonably request.
THE EXPENSES INCURRED BY NORTHSTAR PARTNERS LLC AND OWNER in
performance of this Agreement shall be borne as follows:
1.
Signage, staffing, and other relative travel and entertainment expense shall be at
Northstar's expense.
2. All other expenses, including but not limited to, direct expenses such as appraisal fees,
title charges and fees, survey charges and fees, attorneys fees for preparing or
An. independently.- owned. and
operated member of the
11111'. CUSHMAN&.
~~~lWAKEFIELD@
A l II A NeE
11095 Viking Drive, Suite 240, Eden Prairie, MN 55344
952-465-3300 Phone 952-465-3301 Fax
o
o
o
~liP"IIJ41
negotiating purchase agreements, marketing tools, advertising, mail campaigns and
environmental reports shall be at Owner's expense.
Northstar warrants that it is a duly licensed broker under the laws of Minnesota and that all
agents and salespersons working for Northstar in connection with the Property are also duly
licensed salespersons and/or brokers under the laws of Minnesota. Northstar further warrants
that it has the legal authority to enter into this Agreement. Northstar agrees to hold Owner
harmless from any liability, damages, costs and expenses arising from any incorrect information
(unless supplied by Owner) given by Northstar to others with respect to the Property.
You understand that Northstar represents buyers looking for Property including properties which
may be similar to the Property. If a potential buyer represented by Northstar becomes
interested in the Property, a dual agency will be created. This means that Northstar will owe the
same duties to the potential buyer that it does to the Owner. Northstar cannot act as a dual
agent unless both Owner and the potential buyer agree to the dual agency after it is disclosed to
both the Owner and the potential buyer. By agreeing to a possible dual agency, Owner will be
giving up the right of exclusive representation in the proposed transaction, however, if Owner
decides not to agree to a possible dual agency, it may be giving up the opportunity to sell the
Property to potential buyers represented by Northstar. Northstar will immediately disclose to
Owner any situation that arises in which a dual agency relationship is created. If such a
situation does arise, Northstar will present Owner with a Dual Agency Representation
Agreement for review. Northstar will not continue any further representation of Owner under the
dual agency until such time as Owner has provided its consent to such dual agency by
executing the Dual Agency Representation Agreement.
IN WITNESS WHEREOF, the undersigned have executed this Agreement the day and year first
above written.
Accepted by: Accepted by:
(Owner)
NORTHSTAR PARTNERS LLC
By
Its
By
Clinton A. Miller
Its President
Date:
Date:
Address:
11095 Viking Drive
Suite 240
Eden Prairie, MN 55344
Telephone:
Fax:
Telephone: 952-465-3300
Fax: 952-465-3301
An ,independently owned and
operated member ofthe
111111l~CUSHMAN&
....'~f WAKEFIELD@
AlliANCE
11095 Viking Drive, Suite 240, Eden Prairie, MN 55344
952-465-3300 Phone 952-465-3301 Fax
c:> Background
Northstar Partners (NSP) was contacted by Doug Urhammer who requested we
represent Town Center Development (TCD) in the acquisition, development &
leasing of "Andover Professional Building (APB).
NSP & TCD entered into a Listing Agreement to represent TCD in the leasing of
the Andover Professional Building (APB). NSP was informed at that time that the
project required a good prospect, perhaps a good bank or other financial entity to
"kickoff' the project. The NSP OfficelMedical team then proceeded with a major
marketing campaign on TCD's behalf to lease only and not sell the site. NSP did
not attempt to "flip" the site to another developer. To do so would have been
questionable at best. Either by taking advantage of the cities site pricing or
selling the site out from underneath. TCD.
It became clear near the end of our Listing Agreement and the cities Agreement
with TCD that NSP would have to have significant pre-leasing, meaning fully
signed leases for a majority of the project in order for TCD to move forward. An
unlikely scenario at best.
Proposal to List and Sell the Andover Site
o
Goal: To have the site acquired by a Developer interested in pursuing a quality
development that is aligned with the City of Andover & the EDA's vision. A
speculative project with no pre-leasing requirements. In conjunction with those
efforts and at the same time to identify a quality user/company to purchase the
site and build-to-suit to lease or own.
NSP's mission is to create a market for the site by exposing the opportunity to all
prospects users and developers alike thereby creating a competitive scenario for
the city resulting in the best price and terms.
Recommendations
. Start now, the development season is upon us.
. No letters of intent for any period longer than that would be considered
reasonable to produce a purchase agreement (1st draft)... Ten (10)
business days.
. Limited contingencies in both scope and time
.
EDA approval for both site plan as well as use. In the case of a
speculative developer a concept plan. All other contingencies can
typically be met within ninety (90) days.
o
o
. Earnest money becomes non-refundable after all contingencies have
been satisfied. Earnest money should be significant to "flush out"
any developers not serious about a speculative development in
Andover.
Brokers Fee
We are recommending a 6% fee for a direct sale by NSP to an
investor/developer buyer. If a user represented by a legitimate broker entity
comes forward we are suggesting an additional % fee. The total to be split
between NSP and a procuring broker if any. The reasoning behind this is
simple... most, if not all decent size and credit users are in fact represented by
brokers. NSP wants to encourage the broker to broker dialogue. A market fee is
required to open that dialogue.
. No Exclusions: The Listing Agreement should not contain any
exclusions that would effect the marketing efforts of the team. NSP
performs best working directly with the acquiring principals. The process
of driving the highest value for Andover requires that team understands
their responsibilities as well as compensation.
o
. ListinQ Period: Six months. By law, these agreements are essentially "at
will" and can be terminated by either party at any time.
. Marketina Plan: A clear concise mutually acceptable plan for success.
An out line to be modified with Dickinson and Neumeister is attached and
is subject to EDA and NSP management's final approval.
o
o
Mark ting Plan
Andov r Site
Marketing Tactics
A. Understand The Property and the competition
Timeline:
Done
B. Personal Prospectinq Timeline: In progress
We have identified many of the most likely buyers for this property. We will
contact the appropriate person via phone and attempt to set up showings with
good prospects. Direct phone calls to all developers will be made
immediately.
C. Brokers Timeline: 5-15 days
and ongoing
All significant brokers working north/northwest submarkets will be contacted
directly regarding the site.
o
D. Brochures & Collateral Material Timeline: Done
We will design a color e-brochure for prospects. A detailed property offering
will also be prepared for interested prospects. The offering package will
include area maps, floor plans, construction specifications, City of Andover
zoning information, Property Tax Information, traffic studies and any other
pertinent document.
E. Direct Mail Timeline: 30 - 60 days
Our database of public, private, developers and corporate users is up-to-date
and ready for direct mail use. Prospects that we have identified as "likely
prospects" will receive personalized brochures and will be invited to tour the
site, to include 500 piece mailing and twice a month thereafter.
F. Local Listinqs Timeline: Done
We will prepare a summary listing describing basic features of the property for
submittal to the MNCAR on-line system that reaches of 1,000 commercial
brokers in the Twin Cities market. We will modify the existing listing to meet
EDA approval.
G. Broadcast emails promoting the opportunity will be sent to all MNCAR brokers
twice monthly. Currently 700 brokers.
H. Siqnaqe Timeline: Done
Visible, but tasteful and unobtrusive signs will be placed in an appropriate
location to assist visitors in locating the drive area as they approach the
building subject to city approval.
o
o
I. Accountable Reportino Timeline: Ongoing!
Demonstrated
We will report our progress on a schedule that meets your specifications.
Reporting can be written, online, conference call or in person. You will not
have to call us to know the status of any prospects for your property.
J. Showino Report Timeline: 24 hours
A showing report will be completed outlining the company, personal & any
pertinent information regarding the prospects interest.
. Agreed to
By:
Its:
Date:
o
o
e,
o
o
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 Develo
SUBJECT: Time Extension Request (Nassau Builders)
DATE:
February 6, 2007
INTRODUCTION
Andy Stoner (Nassau Builders Inc.) has a purchase agreement that calls for a closing on or before
February 19, 2007 for the north half of Lot 24, Block 1, Parkside at Andover Station (attached).
They have found some interest from a few small companies to occupy the buildings that they've
proposed, but none have committed to signing on the dotted line. They feel that they'll need an
additional six months of due diligence to see if this is financially feasible. They're asking for a six
month time extension on the purchase agreement before they will make the down payment money
"hard" (non-refundable). They feel they need this additional time to enable them to market the space
properly (see attached letter). If they need to make the down payment non-refundable at this time,
they have indicated they will ask for a refund of their down payment and back away from any further
efforts to market the buildings.
DISCUSSION
Although the developer has had six months to market the proposed buildings, staff feels that the
marketing has not been easy, since Jay Street is not a very busy street at this point in time. When the
ballfields open this spring, and the barricades on the comer of 139th and Hanson Boulevard are
removed in the fall of 2007, it will be much easier to market the site. Staff is recommending that the
EDA grant a six-month time extension for marketing the proposed buildings.
ACTION REOUESTED
The EDA is asked to discuss and determine if they will give Nassau Builders, Inc. a 6-month time
extension to perform their due diligence.
Respectfully submi~edy
Will Neumeister ~
Attachments
Purchase Agreement
Letter from Nassau Builders
o
o
o
PURCHASE AGREEMENT
// /6'i Ith ,
2006, by and between Andover Economic Development Authority (AEDA), a body
corporate and politic, 1685 Crosstown Boulevard NW, Andover, Minnesota, Seller and
Nassau Builders, Inc. a Minnesota corporation, Buyer.
1.
PARTIES.
This Purchase Agreement is made on
2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to
sell real property legally described as follows (and shown on attached Exhibit A):
The North One-Half of Lot 24, Block 1, Parkside at Andover Station,
Anoka County, Minnesota ("Property").
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:
Two Hundred Thousand Five Hundred Seventy Seven and no/100 Dollars
($200,577.00) which Buyer shall pay as follows: Eamest money of Five Thousand and
no/100 Dollars ($5,000.00) by check, receipt of which is hereby acknowledged, and One
Hundred Ninety Five Thousand Five Hundred Seventy Seven and 00/100 Dollars
($195,577.00) cashon or before February 19, 2007 DATE OF CLOSING.
The purchase price is based on a site estimated to be 50,144 square feet of
gross usable area (exclusive of the triangular area at the northwest corner of the parcel
which is not considered to be usable). The price herein represents a net per square
foot price of $4.00 ($3.64 per square foot for property inclusive of all assessments/area
charges and $0.36 per square foot for park/trail dedication fees). After the survey of the
property is completed by the AEDA as required in paragraph 8 herein and the actual
gross square footage of the site is known, the price shall be adjusted to reflect the .
change in land area based upon the square foot price set out in this paragraph. Net
square footage is defined as the gross area minus the unusable triangular area at the
northwest corner of the parcel.
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.
1
o (b) Buyer shall have obtained all zomng, 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, and economic
viability of the project, 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. If Buyer requests that Seller extend anyone of the contingencies by an
additional 6 months, the deposit will still be applied to the final purchase price.
6. DEEDIMARKETABLE 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;
o
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.
E. Declaration of Covenants filed by the Andover Economic
Development Authority.
F. Restrictive covenant described in paragraph 22 herein.
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.
o
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.
2
o
o
o
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 offsite utilities, storm drainage, street lights and
paving to be constructed, if not already completed, necessary to serve the property at
Seller's expense. Such obligation shall not include the sanitary sewer and water
connection charges. Said charges shall be the responsibility of the Buyer.
(d) SELLER shall deliver the property with all mass grading completed.
9. BROKERAGE. Seller acknowledges Devon Walton, of RElMAX
Associates Plus, Inc. as Buyer's agent for Nassau Builders, Inc. Seller agrees to pay
RElMAX Associates Plus, Inc. a fee of five percent (5%) of the gross sale price upon
successful closing of the transaction. Both parties represent that they have not dealt
exclusively with any other agentlbroker in connection with this transaction and agree to
hold each other harmless for any claims arising from any other brokers.
10. BUYER'S OBLIGATIONS.
(a) BUYER will provide a preliminary site plan on or before January 19, 2007
for approval City of Andover.
(b) BUYER will provide a final site plan to the City on or before February 19,
2007.
(c) BUYER shall construct a building upon the property which is in substantial
conformance to the building identified in attached Exhibit B. Buyer's obligation shall
survive the closing on this transaction.
(d) 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
3
o
property is subject to restrictive covenants, Seller has not received any notice from any
person as to a brea,ch 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.
o
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, arid if not
objected to in the same time and ma,nner 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.
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:
o
(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
4
o
o
o
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:
(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.
5
o
o
o
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. PARKlTRAIL DEDICATION FEES. Seller shall be responsible for payment
of all parkltrail dedication fees due the City of Andover for development by Buyer of the
Property.
21. CROSS ACCESS AND PARKING AGREEMENT. The parties shall enter.
into a cross access and parking agreement prior to closing for access and parking
between the parcel being conveyed to the Buyer described in paragraph 2 herein and
. the remainder parcel owned by the Seller.
22. RESTRICTIVE COVENANT. Seller and Buyer agree that at the time of
the closing, they will execute a restrictive covenant to be recorded against the property
described herein which requires the Buyer, its successors and assigns to construct a
"vapor barrier" under any building that is constructed upon the Property. Said restrictive
covenant shall also include a provision that prevents any new wells from being bored or
drilled on any of the Property.
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:
NA~ .
By: . ;;: ft/"8z-
Its: P~r /CEO
/
By:
By:
6
Feb 01 07 04:04p
p.2
o
Nassau Builder's, Inc.
763.413.9100 Andv@nassaubuildersinc.com
Andover City Hall
1685 Crosstown Blvd. NW
Andover, MN 55304
February 1,2007
Dear EDA,
o
At this time, Nassau Builders, Inc. has not been able to secure any leases or tenants for
the property currently rmder purchase agreement in Andover Station North. Response to
ads, signage and other marketing bas been non-existent. In talking with other
commercial developers, their responses have been similar.
Given the current "cool" commercial market, we are requesting that we be given a six
month extension on our agreement rmtil August 1, 2007. During that time, we would
continue to pursue clients and development in this area. With the extension, we also
request keeping our earnest monies reftmdable during that time period. If you are
agreeable to this change, we will sign the appropriate paperwork.
Please let us know of your decision as soon as possible.
/If iIJ !
Andy Stoner
Nassau Builders, Inc.
o
o
o
o
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 Director
FROM:
1
nt Director d
Will Neumeister, Community Deve
SUBJECT: Update on Economic Development Activities
DATE:
February 6, 2007
INTRODUCTION
This memo is provided as a status update for all the economic development activities related
to Andover Station North that the City 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
"Preview" which will start on February lOth .
Funeral Home Proposal- They are preparing a commercial site plan. The closing date will
be on or before February 26, 2007.
Day Care Proposal- Once again, the purchase agreement was prepared and mailed out to
Tracy Sonterre for signature. Still nothing heard from her. Staffhas sent her a certified
letter that indicates that unless we have a signed purchase agreement from her by February
15,2007 the $5,000 non-refundable earnest money will be lost, as specified in the original
letter of intent that she had provided the City. In the event we do hear from her, the purchase
agreement calls for a closing date of March 19,2007. We will keep the EDA informed of
what happens.
NBI Office Development - They are asking for a six-month time extension to work on their
due diligence. The EDA needs to act on the request or they will walk away from the deal and
ask for their down payment to be refunded.
MVP Baseball (John Larkin) - There is nothing new to report.
o
o
o
Attracting a Restaurant -The search for a restaurant continues to be elusive. Again, 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.
Potential Redevelopment Project - Since the last EDA meeting staffhas learned from the .
brokers that Eddies Auto Body will consider nothing less than a $1.4 million to be bought
out. There are two prospects that are looking at the site. If anything new develops, the staff
will inform the EDA about what may be needed to make the redevelopment attractive enough
to proceed to the next step
ACTION REQUESTED
This is an informational update to the EDA only, no action is needed.
Respectfully submitted,ui-
Will Neumeister
2