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HomeMy WebLinkAboutEDA August 21, 2007 o 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING August 21,2007 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (8/07/07 Regular Mtg.) 3. Public Hearing on Land Sales (MVP Baseball, Tasty Pizza, Dynamic Sealing Technologies) 4. Bunker Lake Redevelopment Activities 5. Update on Economic Development Activities 6. Other Business 7. Adjourn c o o o 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Economic Development Authority CC: Jim Dickinson, Executive Director FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: August 21, 2007 INTRODUCTION The following minutes were provided by staff for approval by the EDA: August 8, 2007 Regular Meeting (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, tJ;:L. U~ Vicki V olk City Clerk ... @ 01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1'\22 W23 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 AUGUST 8,2007 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Vice President Julie Trude, August 8, 2007, 6:03 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: President Mike Gamache (arrived at 6:14 p.m.), Commissioners Don Jacobson, Mike Knight (arrived at 6:14 p.m.),Ken Orttel, and Voting resident member Joyce Twistol Voting resident member Robert Nowak Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer, Dave Berkowitz Others Absent: Also present: APPROVAL OF MINUTES July 17, 2007: Correct as amended Vice President Trude stated on page 2, line 4, it should say, "the EDA will need to rescind the purchase agreement submitted to the Sportsman's Grill." Page 2, line 7, should say, "Discussion regarding the process of rescinding the purchase agreement." Page 2, line 9, the motion should say, "to rescind the previous purchase agreement submitted to Sportsman's Grill. MOTION by Jacobson, Seconded by Ortte!, approval of the Minutes as amended. Motion carried unanimously. REVIEW PURCHASE AGREEMENT (TASTY PIZZA) Sarah Brenk from Tasty Pizza stated there are some changes to the purchase agreement recommended by her attorney. Page 2, paragraph 7, under seller shall pay she would like "pending assessments" to be included. Page 1, paragraph 5, Contingencies, adding that project costs need to be acceptable to the buyer. She would also like the purchase agreement to include an indemnity clause regarding any contaminated soil found on the site. Mr. Neumeister stated the site has been cleaned up to the satisfaction of the MPCA. Commissioner Trude would like the City Attorney to write up the clause regarding soil contamination. c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 018 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 - August 8, 2007 Page 2 MOTION by Trude, Seconded by Jacobson, authorizing staff to sign on behalf of the EDA with the discussed provisions in the purchase agreement with Tasty Pizza. Motion carried unanimously. DISCUSS FRONTAGE ROAD RECONSTRUCTION REQUEST (KWIK TRIP STORE/CAR WASH) Mr. Neumeister introduced Mr. Van Tassel who is representing Kwik Trip. Mr. Van Tassel is asking for assistance from the city in reconstructing the frontage road at Jay Street and Bunker Lake Boulevard. Commissioner Jacobson asked the cost of the project and if the city would be in charge of the construction of the project. Mr. Berkowitz stated the estimated cost of the project is $200,000; however if the cost exceeds that amount, Kwik Trip would be responsible for the remaining cost. The city would be in charge of the construction. Commissioner Trude asked about the other property owners along the frontage road contributing to the cost of the project. Mr. Dickinson explained the benefits for all the properties in that area. Mr. Van Tassel stated the background of the Kwik Trip Company. They are considered a small grocery store, not just a gas station. This would be the first North Metro store. The square footage of the building would be 5,200. Kwik Trip's share of the cost of the frontage road project would be 47 percent. They would also be giving the city more right-of-way easement then Kwik Trip would be getting back. Construction would be next year. Commissioner Knight suggested Mr. Dickinson contact Kottkes and Mobil regarding the frontage road construction. EDA would like a report from staff at the next meeting. UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES Mr. Neumeister gave updates on the following: Rudnicki's Retail Building-A hair salon has submitted a plan for a tenant finish permit. Funeral Home-Ground breaking will be August 22, 2007 at 11 :00 a.m. c o o Andover Economic Development Authority Meeting Minutes - August 8, 2007 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Office Development-There may be more interest if the property is office pads and they could be sold off one at a time. MVP Baseball (John Larkin)-Would still like to close before September 1, 2007. Still working on fmancing and needs to get an appraisal report. Dynamic Sealing Technologies-The building design and site plan are being prepared. Soil borings will be done next week. Northstar Partners-The agreement will expire August 31, 2007. Northstar would like a six- month extension. . Motion by Trude, Seconded by Jacobson, to extend the current agreement for six months. Motion carried unanimously. Other Retail-A new plan regarding a portion ofland south of Rudnicki's retail center. This could enable the retail center to continue expanding as the market allows and still allow for a restaurant site. Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 7:02 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US FROM: Will Neumeister, Director of Commun evelopment tilL TO: EDA President and Board CC: Jim Dickinson, Executive Director SUBJECT: Public Hearing -- Land Sale (MVP Baseball, Tasty Pizza, Dynamic Sealing Technologies) DATE: August 2 I, 2007 INTRODUCTION City Attorney, Bill Hawkins, has advised the EDA that when land owned by the EDA is sold a public hearing is necessary. Now that purchase agreements are signed and the closing dates are pending, it is appropriate to hold the required public hearing for the land sales. Three separate parcels in Andover Station North are being sold to the following ventures: MVP Baseball (Lot I, Block 1), Tasty Pizza (Lot 4, Block 3), and Dynamic Sealing Technologies (the east Y, of Lot I, Block 3). ACTION REOUESTED The EDA is requested to open the public hearing and request public comment. If no public comments are made, then the EDA may close the public hearing and discuss the proposed resolution. The City Attorney has also advised that the EDA should pass a resolution indicating it is in the public interest to sell these properties and that the specified intended use of the parcels is in keeping with the interest of the City of Andover EDA to further the redevelopment of Andover Station North. See attached resolution on the upcoming land sales. Staff recommends the land sales be completed as they meet the original objective of redeveloping the area with a diversity of different uses that will meet the needs of the broader community. All proposed buildings will conform to the design guidelines that were established for Andover Station North and will compliment the entire Andover Station redevelopment area. ACTION REOUESTED The EDA is asked to hold a public hearing; take public comment on the three proposed land sales; and review the attached resolution. If the EDA agrees with the findings of the resolution, a motion to approve the resolution and allow the land sales as proposed would be in order. o Respectfully submitted~ Will Neumeister Attachments: Public Hearing Announcement, Resolution, Location Map o CITY OF ANDOVER EDA COUNTY OF ANOI<A STATE OF MINNESOTA RESOLUTION NO. - 07 A RESOLUTION APPROVING THE LAND SALE OF PARCELS LOCATED IN ANDOVER STATION NORTH WHEREAS, the City of Andover EDA has held a public hearing to gather public comments on the proposed land sales and to disclose the pending land sales of three parcels in Andover Station North to MVP Baseball (Lot 1, Block 1), Tasty Pizza (Lot 4, Block 3), and Dynamic Sealing Technologies (the east Y2 of Lot 1, Block 3); and WHEREAS, the findings substantiating that it is in the public interest to sell the EDA owned parcels to these companies include the following: A. The land sales to the enterprises noted above meet the original objective of redeveloping the area with a diversity of different uses that will meet the needs of the broader community. c B. All proposed buildings shall conform to the design guidelines that were established for Andover Station North and will compliment the entire Andover Station redevelopment area. NOW, THEREFORE, BE IT RESOLVED by the EDA ofthe City of Andover, Anoka County, Minnesota, that the public hearing has been held and it has been found to be in the public's interest to sell the EDA owned land to MVP Baseball (Lot I, Block I), Tasty Pizza (Lot 4, Block 3), and Dynamic Sealing Technologies (the east Y2 of Lot 1, Block 3). Adopted by the EDA of the City of Andover this 21st day of August, 2007. CITY OF ANDOVER EDA Michael R. Gamache, President Attest: Victoria V olk - City Clerk o -2.. - !57s.;.R 2 Aaeo ~ TION NORTH Anoka County Jlonumtlflt a1 lb. HE. Cor. 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(S. $h..t 2 of ~SI}~~ -..............._......_ Ac4e6:> ------------- , , I I ~ J<; ,0:; , , , , , I- ~ I W~ W~ 0:: .... en ~ Z ">-00 2 ~ ..., 109.596 sq.ft. 2."~ r .." I , , I , , / , I s::t:! c:i~1 ~~I !l!/ , , / , I , I , .." 2 I D"..lI<.........u... ,rl''11 VI'!I.'! Dynamic Sealing Technologies 28J:J9 3 88.399 sq.fl 2.03~ 3 589'27'50"( .iBl.3... '""3Sw.74 () LL <( ,> LoJ _J :J () co 5 180,239 Sq.Ft. 4.14 Acres ~ I r I ~ I~ RLK - Ku. SHEET 1 OF ~ o @ CC: 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US EDA President and Commissioners ~ Jim Dickinson, Executive Director ~ Will Neumeister, Director of comm~velopment~ TO: FROM: SUBJECT: Bunker Lake Boulevard Redevelopment Activities DATE: August 21, 2007 INlRODUCTION This report is to explore a few options related to what can be done to facilitate redevelopment of the area south of Bunker Lake Boulevard between Hanson Boulevard and Jay Street. The issue was first identified in the Council goal setting for 2005-06 and was last discussed at the December 20,2005 EDA meeting (see attached minutes). Redevelopment of another section of Bunker was also on that agenda. This report will attempt to bring back into focus potential C options to phase in redevelopment of the area between Jay Street and Hanson Boulevard. DISCUSSION Area between Jay Street and Hanson Boulevard As was the case two years ago, some properties in this area are currently for sale. The issue that prompted this new discussion is the opportunity presented by Kwik Trip convenience store and what they are proposing. At the last meeting the EDA asked staff to look at what could be done to redevelop the entire area. This report is to put a forward looking plan on the table for the EDA to evaluate whether there should be any support for their request and how the other property owners in the area would tie into that plan. The attached drawings show the area and how the parcels could be redeveloped into a mixed use area (similar to Andover Station North) A key element to any plan to redevelop the area is an improvement in access to the area from both Bunker and Hanson Boulevards. It is staff's recommendation that this entire area remain in private ownership with a redevelopment plan developed (and adopted) showing the long term goal of the City is to transform the area into a new business park This will involve planning how the bus company site could be reorganized to enable some of the northern portion to become retail, office, or restaurant sites. This could open up some very good possibilities for creating new jobs in Andover which the entire Andover Station area needs to support the various new restaurant and retail ventures that are located in the area and may be attracted to locate in the area. o o o o This measured methodical approach may yield a desirable development along Bunker and allow Kottkes to remain until they have found a site to relocate to The concept plan is meant to provide flexibility and allow transition of the Kottke site to occur. It is likely that this transformation could take years. This "transitional" concept plan provides the Kottkes the opportunity to remain at this location for many years (obviously downsized as they sell off portions of their site). The improvement of the access to the area is very important to the ability of the area to support the level of new development that is portrayed on the attached drawings. Staffhas contacted the brokers representing the Kottke's on the sites that are for sale along Bunker, and they are very supportive of the relocated frontage road and improvements to upgrade the access to these parcels. They have indicated that their client may be willing to provide some financial support for the costs to relocate the frontage road along Bunker as shown on the concept plans. The Mobile Gas Station site could be viewed as a prime redevelopment site, however, it probably will be difficult to site a new building on the comer because of Anoka County limiting access to either Bunker or Hanson. There are two power line easements that restrict the size and type of building that can be placed there and the power lines may be seen as a negative to someone that may be interested in buying the property. Again, unless there's a willing seller this may be a very expensive site to acquire. Staff suggests that both the comer and the adjacent mini storage site be redeveloped together to allow the access at Hanson to serve the sites as well as the land located west of Grouse Street. This will become important to facilitate the bigger goal of redeveloping more than just the comer of Hanson and Bunker. ACTION REOUESTED The EDA is requested to discuss the various options of redevelopment of property along Bunker Lake Boulevard and determine whether there is a benefit to working on the frontage ' road reconstruction. Also, provide staff direction for new options or if any of the potential redevelopment concept options should be pursued. Respectfully submitted,~ Will Neumeister Attachments Minutes of December 20, 2005 EDA meeting Concept Redevelopment Drawings (two alternatives) o Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 2 . Dickinson did not think this would be a feasible project. ak wondered what he meant by the gap could be filled by funds fro the Andover Station District. How do they fill in the gap and do they have an exce . Mr. Dickinson stated if the do nothing else in the TIF District and all the land sales c e through, and they do not take on an ther projects, they could take in about $3.5 to $3.6 lion dollars. Mr. Dickinson state hey could do a cost share with developers Commissioner Knight wo ered how they would justifY th kind of expenditure for private property without loans. Mr. . clcinson stated this is a re evelopment area and they are improving it so it is in the best erest of the residen d would not require a loan. o Commissioner Jacobson wondered if made mo sense to watch the area closely and make sure all the ordinances are carried out to keep e p. perty up to certain standards in order to live in the area. Commissioner Orttel stated that i ot the problem, the buildings are all legal but do not look nice. Commissioner Orttel stated if they i prove the 100 of the buildings, they could get more rent. This has always been a low renta ea in the City. He ought the way to do it is to split what can be split and sell them off b ause owners will take c of their property, unlike renters. Anoka. President Gamache wondered if the City w helping to clean up the buildings. Co . sioner Knight stated they a Avenue in St. Paul where they are taking but ings and making them City is not helping them. Orttel thought the unsightly buildings on Bunker Lake Boulev Mr. wak did not think anyone really likes the looks of these buildings. Commissio r Orttel sta a they cannot walk away from this but he could not see using public money to fund ought a loan or CDBG funds could be used. .. Mr. Neumeister reviewed the Kottke's Bus area with the Commission. Commissioner Orttel stated other cities have auto malls and Andover does not have anything like that. He wondered if this was something they could look at getting to come into Andover. o Mr. Neumeister thought this would be a private sector deal and he did not think the City would want to subsidize this. Commissioner Jacobson stated if this is zoned industrial, they might want to rezone it to o Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 3 commercial so something undesirable does not come in. He wondered what is allowed in industrial that is not allowed in commercial. Mr. Neumeister indicated there is not much difference. Commissioner Orttel wondered if they have determined what Kottke's needs for acreage. Mr. Neumeister indicated Kottke's said they would need about twenty acres and they have eighteen acres right now. Kottke's is in a central location and does not want to leave unless a really good deal is given from the City. Mr. Neumeister thought this could be a nice area for a Molly Building. Commissioner Orttel thought this would be prime retail space in the future. Commissioner Jacobson wondered if the City should come to Kottke's and ask them to sign a right offrrst refusal so the City is in the loop. Mr. Dickinson stated they could look at that. Mr. Neumeister stated they need to get access to either Hanson Boulevard or Bunker Lake Boulevard in order to make something work on that land if redeveloped. o President Gamache stated once Hanson is widened, they will know how the Spur station is working out. Mr. Nowak stated if there was an access put in now at Hanson to connect to Grouse, development may not happen the way the City wants it to happen. He thought they should just leave it the way it is. Ms. Twistol liked the idea oflooking at the zoning on the property. Mr. Neumeister wondered if they wanted to investigate putting an overlay on this that sets the same designs they used at Andover Station so as the area starts to turn over, they have to meet some higher standards other than Commercial or Industrial Zoning Districts. He stated right now those standards are fairly low where Andover Station standards are higher. He wondered if they should consider looking at that too. President Gamache thought tha.t was a good idea also. President Gamache wondered how that would affect the buildings further back. Mr. Neumeister stated it would affect them only ifthey were to remodel and then they would have to bring them up to City standards. Mr. Dickinson stated they could look at other areas for redevelopment in the City if the Commission wanted that. o Commissioner Orttel stated he did not want to walk away from the Bunker/Crosstown redevelopment. He thought there had to be a way to upgrade the area. Mr. Dickinson indicated they do not have City water. o Q ~. E NP o Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 4 Ms. Twistol wondered what it would take to hook these sites up to water. Mr. Dickinson stated they would have to have bad water because they cannot force them to hook up. There was discussion among the Commissioners regarding bringing the buildings up to code and improving the area. Ms. Twistol wondered if it would do any good to do an overlay on this area as well. Mr. Neumeister did not think that would work in this area. He thought it could be somewhat detrimental. Mr. Neumeister stated they could change the land use on this area, making it multi-use. Commissioner Orttel stated they still need to have the City indicate the entire area will flip or else no one will be the first one to redevelop it. Mr. Neumeister stated unless the City is willing to give a grant, the property owners will not want to improve the area. Ms. Twistol wondered if they have a beautification program along Bunker. She thought this may be something they want to look at. Commissioner Knight stated there is more to this than landscaping. He stated there is not any deviation to the buildings and they are starting look old and worn. He thought the buildings themselves need to be upgraded. Mr. Neumeiste dated the Commission on Andover Station North. He stated t received a letter from the MP regarding file closure. They are still waiting for a Ie from VPIC. He indicated this will give . Casey and Mr. Rudnicki a chance to get . g on their projects. Motion by Jacobson, Seconded by adjourned at 6:57 p.m. . Motion carried unanimously. The meeting RespectfulIy submitted, Q @ 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 SUBJECT: Will Neumeister, Community Develop nt Director tu:l.-- Update on Economic Development Activities FROM: DATE: August 21,2007 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. The following is the update on activities: Rudnick's Retail Building - Still marketing to fill the spaces, staff assisting by providing leads. The staff met with Rudnicki and a broker who would like to consider expanding the retail center. As more discussion takes place, the staffwiII inform the EDA on the discussions. At this point it is very preliminary. The possibilities look very positive towards building out the center as originally envisioned with another 19,000 square feet of space added onto the existing center. o Bruggeman Homes - Nothing new to report. Funeral Home - They are in the process of building the structure. Office Development - The staff made contact with the individual that showed some interest in the day care center, That person is not interested and has pursued another location. Staff contacted Pinewski Builders once again to see if they had any interest, and none has been shown. MVP Baseball (John Larkin) - They are working on the architectural and site plans. John Larkin would stilI like to close on or before September 1, 2007. Light Industrial Building (Dynamic Sealing Technologies) - They have completed their soils borings and found a pocket of peat about ten feet below grade and staff is taking care of getting the soils correction done as specified in the purchase agreement. They anticipate closing on the land purchase on August 29th. They want to have a full building permit by fall. Office Development (Northstar Partners) - The listing agreement has been extended an additional six months as approved by EDA at the last meeting. Tasty Pizza (Darren Brenk & Associates) -The purchase agreement is being modified by the Attorneys. ACTION REQUESTED This is an informational update, no action is requested. Respectfully submitted} . / Will Neumeister ~ '"