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HomeMy WebLinkAboutEDA November 20, 2007 0 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 0 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 0 0; 3 4 5 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. 46 47 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 39 040 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 0 0 0; 3 4 5 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 0 Q) 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 ~ 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. 0 "'.... Z e: "'C Q) :2 ~ c:5 ~ c: ro ro 0 '" Q) .- t) - co. rn o ...."'00 e: O a; ~ e'i5~ ,g a. .gQ)uQ) ro :;:: e:E.QO g :; <(:> - :2 e: ~ N co co o 0 o "'C 0 N .0 N r-:. I- r-:. o 0 o 0 N N Q) E :;:: .!!1 .r: .... en ~ ....... .... ro ro m:g <( Q) :g e: >. I- Z >. I- .2 ...... LO 0 '" o ~ e: o ro N e: x .- Q) ... '+- "'0 L... ...... 0 '0 rn := 0 o 00 a. "'C "'C ~...... ... . ~'o .0.0 .o"'C CI) ~ <o~ LO I- I- E Q) .c 6'l- ~6'l- LO 0 .><: Q) E 6t7 6t7 0 '- c: .... 0 .... .., 3: 3: ffi W" 0 0 lo.... > (/) .c.......:; 0' Q) '" 00 Q) 0.... Q) U Z g g ('. ~ g 16 .~ 0 I -M- en <0 r-- :t: Z N '0 ~ LO B ~ "'C .... "'C Q) W' "'C C ....: en c: Co e: 0 ~ .... 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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 I o 1M Ii?( ~ Jl if ,~ .W'~ ~~ ----7 o I ~: I I 11 .~pf?L<1~_ ~ --0 I ~. ~10!1~ ~.~ o =MLJffta~ @ 0 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 I . I . . l . '" I Q) . Q)1O~ , 2:?E~ I Q) ..cc::o. - .- 0 Cii '" "''Ou.. 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'CaJ'-Q)'-_ :1.- W m I:c<UO_CU as"''' CCJ)()L..Q)CU - "CIl-'OOlcn- ~'- - - CIl CaJ.c:- ~~ - " 5: ? x aJ lii aJ>....o .c aJa. .l!.l! Q, :l5 0.';:: c 0-....0 .c aJ.l! C ... _roa.- _ 00 >(Q) - _a. 0 ::J U. 0:::1-(/)-=-= 00........ WCl 00.... u. o @ @ 0 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