HomeMy WebLinkAboutEDA November 20, 2007
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
November 20, 2007
6:00 p.m.
Conference Rooms A & B
AGENDA
1. Call to Order - 6:00 p.m.
2. Approval of Minutes (l0/16/07Regular Mtg.)
3. Update on Economic Development Activities
0 4. Discuss Bunker Lake Blvd. Median Concepts/07-30
5. 2008 Budget Review
6. Approve LMCIT Liability Coverage - Administration
7. Other Business
8. Adjourn
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C I T Y o F @
NDOVE
0 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 Volk, City Clerk
SUBJECT: Approval of Minutes
. DATE: November 20, 2007
INTRODUCTION
The following minutes were provided by staff for approval by the EDA:
October 16, 2007 Regular Meeting (Nowak absent)
0 October 16, 2007 Closed Meeting (Nowak absent)
DISCUSSION
Attached are copies of the minutes for your review.
ACTION REOUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
(J:.L. IJdL
Vicki V olk
City Clerk
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6 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
7 OCTOBER 16, 2007 - MINUTES
8
9
10 A Meeting of the Andover Economic Development Authority was called to order by President Mike
11 Gamache, October 16, 2007, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
12 Andover, Minnesota.
13
14 Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie
15 Trude and Voting resident member Joyce Twistol
16 Absent: Voting resident member Robert Nowak
17 Also present: Executive Director, Jim Dickinson
18 Community Development Director, Will Neumeister
19 Others
20
21
22 APPROVAL OF MINUTES
O;~ October 2, 2007: Correct as amended
25
26 Commissioner Jacobson stated on page 1, lines 34 and 38 the word scrolling should be changed to
27 "electronic".
28
29 MOTION by Jacobson, Seconded by Orttel, approval of the Minutes as amended. Motion carried
30 unanimously.
31
32
33 UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES
34
35 Mr. Neumeister gave updates on the following:
36
37 Bruggeman Homes - There have been 11 recent sales of their town homes. Not one of their
38 single-family homes has sold.
39
40 Funeral Home-The interiors walls are going up. They would like to be open by January.
41
42 Dynamic Sealing Technologies-They have submitted their site plan for review.
43
044 Tasty Pizza - Darren Brenk & Associates were not aware that their attorney hadn't responded to
45 the City Attorney regarding the purchase agreement.
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48
0 Andover Economic Development Authority Meeting
Minutes - October 16, 2007
Page 2
1 DISCUSS LETTER OF INTENT (MURLI NAGWANI)
2
3 Mr. Neumeister stated Mr. Nagwani is interested in purchasing the site located at the southwest
4 comer of Jay Street and 139th Lane NW in Andover Station North to develop a 7,500 square foot
5 day care/Montessori school. EDA is asked to discuss the offering price of$3.66 per square foot.
6
7 Mr. Dickinson stated this parcel is listed at $4.25 per square foot; this price would include the
8 park fee.
9
10 Commissioner Trude asked for a closed session to discuss the price of the land. Mr. Dickinson
11 stated a closed session could be done after this meeting, when all the items on the agenda have
12 been discussed.
13
14 Mr. Nagwani stated his wife operates an existing day care/Montessori school they have in St.
15 Francis. They purchased the day care five years ago and turned it into a Montessori school a year
16 ago. Enrollment has improved since it was turned into a Montessori school. They have looked at
17 several cities and believe Andover would be a great location. They would enroll up to 88
18 children and have 15-18 full time employees. Teachers will be Montessori certified. He would
019 like to start construction in April and enrolling children in August.
20
21 Discussion of the driveway entrance.
22
23 Mr. Neumeister explained sewer and water connection costs.
24
25 DISCUSS CANCELLATION/EXTENSION OF PURCHASE AGREEMENT (MVP
26 BASEBALL)
27
28 Mr. John Larkin asked the EDA to extend the purchase agreement time frame to complete his
29 bank financing. Mr. Larkin stated a third party had been organizing the funding. The third party
30 has dropped the ball; Mr. Larkin has been dealing with the bank directly.
31
32 Motion by Trude, Seconded by Knight, to extend the time frame of the purchase agreement to the
33 end of the year, based on the request by Mr. Larkin.
34
35 Amendment to Motion by Jacobson, Seconded by Trude, ifnot completed by the extension time
36 a letter needs to be provided releasing the EDA from the purchase agreement. Motion carried
37 unanimously.
38
39
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41 The EDA recessed at 6:45 p.m. to go into a closed session.
42
43 The EDA reconvened at 6:54 p.m. from the closed session.
44
0 Andover Economic Development Authority Meeting
Minutes - October 16, 2007
Page 3
1 DISCUSS LETTER OF INTENT (MURLI NAGWANI) CONT.
2
3 Mr. Dickinson provided the results of the closed session. The EDA has indicated the price they
4 are looking at is $4.00 per square foot, which would include the park fee. The price with all
5 sewer and water connections would be $4.40 per square foot.
6
7
8 Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting
9 adjourned at 6:56 p.m.
10
11 Respectfully submitted,
12
13 Michelle Hartner, Recording Secretary
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6 ANDOVER ECONOMIC DEVELOPMENT CLOSED SESSION-
7 OCTOBER 16, 2007 MINUTES
8
9
10 The Andover Economic Development Authority Closed Session was called to order by President
11 Mike Gamache, October 16, 2007, 6:45 p.m., at the Andover City Hall, 1685 Crosstown Boulevard
12 NW, Andover, Minnesota.
13
14 Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie
15 Trude and Voting resident member Joyce Twistol
16 Absent: Voting resident member, Robert Nowak
17 Also present: Executive Director, Jim Dickinson
18 Community Development Director, Will Neumeister
19
20
21 DISCUSS LETTER OF INTENT (MURI NAGWANI)
22
023 Mr. Dickinson stated the piece of property to be discussed is the southwest comer of Jay Street
24 and 139th Lane. The question being asked, how much money do we have into this piece of
25 property? Ten cents per square foot is the purchased price. $1.75 per square foot is what has
26 been put into the property. To include sewer and water connections forty cents would be added
27 to the $1.75.
28
29 Commissioner Jabcobson suggested offering $4.25 per square foot then subtracting 6% for the
30 brokerage fee, bringing the price to $4.00 per square foot.
31
32 The EDA agreed to offer $4.00 per square foot; this price includes the park fee. A price of $4.40
33 per square foot would include the sewer and water connections.
34
35
36 The meeting adjourned at 6:54 p.m.
37
38 Respectfully submitted,
39
40 Michelle Hartner, Recording Secretary
41
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0 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: irector ~
SUBJECT: Update on Economic Development Activities
DATE: November 20, 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 - Mr. Rudnicki is not willing to offer any additional money to buy the land to expand his retail
building towards Bunker. Jim will provide a verbal update at the meeting.
Bruggeman Homes Townhomes - Sales remain slow, no new sales since the last report was given the EDA. .
Funeral Home - They're working on getting the structure built and expect to occupy by January 1 st.
o Offi~e/Day Care Site - The staff have been working with Murli Nagwani. Jim Dickinson will give a verbal update at the
meetmg.
MVP Baseball (John Larkin) - John Larkin has submitted for a building permit and the bank is now evaluating the loan
to him. Jim Dickinson will give a verbal update at the meeting.
Light Industrial Building (Dynamic Sealing Technologies) - They've submitted a Commercial Site Plan review and it is
in process.
Office Development (Northstar Partners) - Our real estate agents continue to market the site for both office and light
industrial uses (see attached summary sheet of their progress in finding a buyer).
Tasty Pizza (Sara & Darren Brenk) - The Brenk's attorney has asked for extensive language to be added to the purchase
agreement in the area of environmental clearances. Staff advised the City Attorney to revise the purchase agreement with
our standard two-year environmental indemnification agreement and we were not willing to agree to what they wanted
added. We have informed them that we needed a signed purchase agreement by November 14, 2007 or we would
recommend that the EDA take action to suspend all negotiations and indicate that we are no longer interested in selling
them the land. Jim will update the EDA at the meeting as to the status of this item.
Star Tribune Newspaper Article - Jim Dickinson encouraged an inquisitive Star Tribune reporter to write an article about
"home town" businesses wanting to locate in Andover Station North (see attached). The article appeared on Sunday,
October 28th and resulted in an e-mail inquiry the next day from a company about what heavy industrial land may be
available in Andover for them. They want to build a 100,000 square foot building and have 60 employees We are
helping them to see if they could locate in Hughs Industrial Park.
ACTION REOUESTED
o This is an informational update. The only action requested relates to Tasty Pizza, as indicated above.
Respectfully submitted, Will Neumeister U'/L
Attachment: Newspaper Article
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0 Andover, hoping to become a boomtown,
trumpets its value as a hometown
Without a state highway, Andover is looking for other routes to attract businesses --like recruiting
current and former residents.
By Paul Levv <mailto:plevv@startribune.com>, Star Tribune
Last update: October 27,2007 - 4:17 PM
A year ago, Andover officials sent 1,500 business executives invitations to attend a gala designed to
lure new businesses to the Anoka County city. But only a dozen attended the event.
"We tried everything," said Will Neumeister, Andover's community development director. "But I think
once a suburb like Andover is already perceived to be built-up, businesses skip over it and go to Maple
Grove, Apple Valley or wherever else there's land to be bought."
If new business were going to come to Andover, a community of about 27,000, they literally needed to
take a less-traveled road. The city, which does not offer large tax-increment financing (TIF) incentives,
is the biggest in the metro area without a state highway. Without a large nF agreement or major
artery, many companies weren't interested.
So instead oftrying to lure new businesses via mass recruitment, Andover officials decided to target
companies with owners who grew up in or live near Andover. Unusual businesses that seemed like
square pegs in other cities' industrial villages and strip malls might be deemed good fits in Andover.
0 MVP Sports Academies is expected to open a franchise next year in Andover, in part because local
owner John Larkin lives in the community.
Dynamic Sealing Technologies Inc., which designs small, rotating parts, plans to move next year from
neighboring Ham Lake to Andover, company owner Jeff Meister's hometown.
"We're looking for niche businesses that want to be in the metro area," said Jim Dickinson, Andover's
city manager. "We're interested in some level of franchising, but it helps to have company owners who
have targeted Andover."
It took nearly two decades and $13 million in land acquisition, cleanups, and street and utility
improvements for the city to shed its image as a "metro areajunkyard," as it was described in a 1988
Star Tribune headline.
A dump site where 550,000 tires were burned in a 1988 fire, drawing the ire of state officials, is now
home to Andover Station, a 90-acre redevelopment the city hopes will become a downtown tax base.
But the area along Hanson Boulevard, which might best be described as the city's downtown, is full of
tax-exempt development such as new schools and a sparkling $18.65 million YMCA-city center
complex. Allowing a potential tax base to go tax-exempt attracts residents but it can also be a
detriment to businesses, said Kent Meister, who represents his brother's Dynamic Sealing company.
A light-industrial company has expressed recent interest in Andover. A pizza restaurant has contacted
city officials about moving in. A contractor wants to build a day-care center. And a developer has
asked to expand an Andover retail center, Neumeister said.
"We can't say we have a lock on any of them, " Neumeister said. "But we have prospects.
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
.
TO: EDA President and Board Membe
CC: Jim Dickinson, Executive Director
FROM:
SUBJECT: Discuss Bunker Lake Blvd. Median Concepts
DATE: November 20, 2007
INTRODUCTION
At the October 2nd EDA meeting staff presented information related to some options that could be investigated
further. EDA directed staff to work with Mickman Brothers Landscaping to remove the debris, weeds and get the
median ready for spring seeding of native grasses. We have completed that work and now would begin the process
of selecting the appropriate native plants and seeds to put in the median in the spring of2008. We have begun to
discuss with Prairie Restorations, Inc. what they would recommend along with recommendations from a DNR
Ecologist. Prairie Restorations is working on developing a detailed cost estimate to complete all the work in the
spring of 2008.
o DISCUSSION
At this point the area looks cleaned up and ready for an April 2008 start thanks to the work done by Mickman
Brothers. Both Prairie Restorations and Mickmans recommended a couple of applications of broad leaf control
herbicide before the actual seeding takes place. We will need to closely monitor weed growth for a year or two
until the grasses have filled in properly to assure grasses will establish themselves properly. The following
paragraph describes what we are working towards for a planting plan.
The ends of the two medians will have wildflowers seeded and also small plants or plugs of either "Prairie Drop
Seed" and/or "Karl Forester's Feather Reed Grass". These areas would be about I 00 square feet in area and add
some color and interest and then we would seed the bulk. of the median with "Little Bluestem ", "Junegrass", or
"Side Oats Gramma". See attached concept planting plan. These three grasses would be planted in sections
approximately 1 00 feet long and alternate to provide some visual interest with a change of color and textures every
1 00 feet. The second reason for doing this is to determine which grass may do better than the others given the
soils, salt already in the soil, and how tolerant each grass is to the conditions of the area.
When the cost estimate is available we will provide it to the EDA. The reason we are bringing this to the EDA at
this time is to determine if all EDA members are in agreement with the general concepts that we are working
towards and when a cost estimate is done we will be able to move forward without a lot of uncertainty or
deliberation over what will be done.
ACTION REOUESTED
The EDA is asked to discuss whether this concept is what they want to pursue.
o Respectfully submitted, ~
Will Neumeister
Attachment: Concept Planting Plan
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
TO: President and Commissioners
FROM: Jim Dickinson, Executive Director
SUBJECT: 2008 EDA Budget Review
DATE: November 20, 2007
INTRODUCTION
The EDA is requested to receive a brief presentation on the 2008 EDA Special Revenue Budget
and a presentation on budgets impacted by EDA decisions.
DISCUSSION
The presentation will be based on the attached documents:
0 Pgs 2 - 5 EDA Special Revenue Fund - This is what needs to be approved at the meeting.
Pgs 6 - 9 Tax Increment Project Fund & Community Center Construction Fund
PgsI0-21 TIF Bonds Debt Service Funds & Community Center Debt Service Funds
If any of the Commissioners would like a one on one discussion with me on the attached
financial data, I would be more than happy to do so.
ACTION REOUESTED
Receive a brief presentation and approve the EDA Special Revenue Fund Budget.
0
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CITY OF ANDOVER
Budget Worksheet - 2008
EDA 2110-46500
,Ot Actual Actual Actual Budget Estimate Requested
Number Description 2004 2005 2006 2007 2007 2008
Charges for Services
54285 Finance Department Fees
54370 Tax Increment Administration F 126,551 127,507 t55,250 150,000 155,975 155,000
Charges for Services 126,551 127,507 155,250 150,000 155,975 155,000
Investment Income
56910 Interest Earned (404) 2,730 6,635 1,000 4,000 2,000
56920 Valuation Adjustment 1,905 328 (1,374)
Investment Income 1.501 3.058 5,261 t,OOO 4,000 2,000
Miscellaneous Revenue
58100 Refunds & Reimbursements 2,954 13.595 14,770 11,065
58170 Sale of Land 101,440
Miscellaneous Revenue 104,394 13,595 14,770 11.065
Other Financing Sources
59100 Operating Transfers In
Other Financing Sources
Total Revenues 232,446 144,160 175,281 151,000 171,040 157,000
Salaries & Benefits
60110 Salaries - Regular 111,794 81,908 40.654
~ Salaries ~ Council / Comrnissio 278 980
FICA 6,020 4,785 2,448
Medicare 1,571 1,123 582
60310 Health Insurance 9,474 7,153 2,833
60320 Dental Insurance 428 384 179
60330 Life Insurance 397 24 11
60340 Long-Term Disability 269 205 108
60410 PERA 4,361 4,325 2,478
60990 Inter-City Labor Allocation 74,571 74,57t 92,772
Salaries & Benefits 134,314 100,186 50,273 74,571 74,571 92,772
Departmental
61005 Supplies - General 49 16 62 2,000 2,000 2,000
61020 Supplies - Operating 4,612 15,797 13,226 12.500
61220 Software
613tO Meals I Lodging 439 386 396 700 700 700
61315 Continuing Education 250 250 1,500 1,500 1.500
61320 Annual Dues I Licenses 610 285 450 15,431 15,431 t6,800
61405 Postage 505 620 585 1,000 1,000 1,000
61410 Transportation I Mileage 881 1,455 1,221 1,200 1,200 1,200
Departmental 7,096 18,809 16,190 21,831 34.331 23,200
Operating
62005 Electric 729
62100 Insurance 3,461 4,534 2.641 5,000 3,000 5.000
62200 Rentals 1.118 746 639
62210 Computer Services 1,500 1,500 1,500 1,500 1,500 1,545
62300 Equipment Maintenance Contract
Operating 6,808 6,780 4.780 6.500 4,500 6,545
0
1I//4/2007 @
CITY OF ANDOVER
BudgetVVorksheet-2008
EDA 2110-46500
ACt Actual Actual Actual Budget Estimate Requested
Number Description 2004 200S 2006 2007 2007 2008
Professional Services
63005 Professional Services 6,06t 3,530 2,223 5,075 5,075 5,000
63010 Contractual Services 6,446 2.077 2,000 11,000 5,000 11,000
63015 Attorney 271 588 91 2,000 2,000 2,000
63025 Publishing 1,633 1,019 733 2,500 2,500 2,500
63100 R & M Labor - General 1,629 5,006 6,006 6,500
63105 R & M Labor - Building 3,922
63200 Inspections 444 1,838 522 250
63905 Contingency
Professional Services 16,484 17,979 11,575 20,575 21,325 20,500
CapitalOntlay
65300 Improvements 500
65600 Equipment
Capital Ontlay 500
Other Financing Uses
67101 Operating Transfers Out
Other Financing Uses
Total Expenditures 165,202 143,753 82,818 123,477 134,727 143,017
Net Increase (Decrease) in FB 67,244 407 92,463 27,523 36,313 13,983
Fund Balance
Beginning 20,944 88,188 88,595 181,058 181,058 217,371
Ending 88,188 88,595 181,058 208,581 217,371 231,354
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1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923. WWW,CI.ANDOVER,MN.US
TO: President and EDA Commission Members
FROM: Jim Dickinson, Executive Director
SUBJECT: Approve LMCIT Liability Coverage - EDA
DATE: November 20, 2007
INTRODUCTION
The League of Minnesota Cities Insurance Trust (LMCIT) requests that participating EDA's
annually decide whether or not to waive the statutory tort liability limits established by
Minnesota Statutes 466,04.
DISCUSSION
0 Attached is the "LMCIT Liability Coverage - Waiver Form" provided by the LMCIT, which
provides a description of the options available to the City of Andover EDA, Currently the City
of Andover EDA DOES NOT WAIVE the monetary limits on municipal tort liability
established by Minnesota Statutes 466.04, I am recommending continuing with the past
practice,
BUDGET IMP ACT
No budget impact if the EDA does not waive limits,
ACTION REQUESTED
The City of Andover EDA is requested to not waive the monetary limits on tort liability
established by Minnesota Statutes 466.04.
-
0
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
0 LIABILITY COVERAGE - WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide
whether or not to waive the statutory tort liability limits to the extent of the coverage purchased, The
decision to waive or not to waive the statutory limits has the following effects:
0 If the city does not waive the statutory tort limits, an individual claimant would be able to recover no
more than $300,000.on any claim to which the statutory tort limits apply. The total which all claimants
would be able to recover for a single occurrence to which the statutory tort limits apply would be
limited to $1,000,000. These statutory tort limits would apply regardless of whether or not the city
purchases the optional excess liability coverage,
0 If the city waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could potentially recover up to $1,000,000. on a single occurrence. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to $1,000,000., regardless of the number of claimants.
0 If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to the amount of coverage purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are notaffected by this decision.
This decision must be made by the city council. Cities purchasing coverage must complete and
return this form to LMCIT before the effective date of the coverage. For further information, contact
0 LMCIT, You may also wish to discuss these issues with your city attorney.
Andover Economic Development Authority accepts liability coverage limits of $
from the League of Minnesota, Cities Insurance Trust (LMCIT).
Check one:
D The city DOES NOT WAIVE the monetary limits on municipal tort liability established by
Minnesota Statutes 466.04.
D The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04,
to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting
SignaturelDate Position
Return this completed form to LMCFT, 145 University Ave. J.1I., St Paul, MN. 55103-2044
0
LMCIT (11/00)(Rev, 11/03) Page 1 of 1