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HomeMy WebLinkAboutFebruary 6, 2007 C I T Y o F 0 NDOVE 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . 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 0 ~M L01l~ 3-Io-D7 C ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING FEBRUARY 6, 2007 - MINUTES A Regular Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache at 6:00 p.m., Tuesday, February 6, 2007 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Don Jacobson, Mike Knight, Julie Trude, Ken Orttel (arrived at 6:05 P.M.), resident member Joyce Twistol Commissioners Absent: Resident member Robert Nowak Also Present: Jim Dickinson, Executive Director Dave Berkowitz, City Engineer Will Neumeister, Community Development Director Others 0 Annroval of Minutes January 16,2007 Commissioner Trude stated that on Page 3, Line 37 it should say "in addition to a restaurant so she wants to keep both sites for restaurants." Motion by Trude, seconded by Jacobson to approve the minutes of January 16,2007 as amended. Motion carried unanimously. Public HearinVEDA Land Sales - Lot 1. Block 3. Andover Station North: Lot 24. Block 1. Parkside at Andover Station Motion by Trude, seconded by Jacobson to open the public hearing. Motion carried. Mr. Dickinson explained that State Statute requires that a public hearing be held so that the public knows we are selling the property. Commissioner Trude stated that she understands it's a land sale proposal. No one addressed the EDA regarding the sales. 0 Motion by Jacobson, seconded by Trude to close the public hearing. Motion carried. 0 Andover EDA Meeting February 6, 2007 - Minutes Page 2 Letter of Intent (Laura HeDDner) Mr. Neumeister explained that this is for Lot 4, Block 3, which is 72,000 square feet. The 12,500 square foot retail center will contain a dry cleaner. Gary Hugeback, representing Laura Heppner, noted that the offering price is $400,000. He indicated that the center would be desigoed and built as a condominium. Ms. Heppner has been operating a dry cleaner in Coon Rapids for 15 years. They are talking with a beauty salon and exercise operation and their intention is to get a restaurant on the end of the building._ The spaces would be sold, not leased. President Gamache noted that the restaurant area is about 4,000 square feet and he asked how that compares with a Green Mill. Mr. Hugeback stated they are between 4,000 and 5,000 square feet. Mr. Hugeback then presented the site plan to the EDA. Commissioner Trude stated that her concern is there are quite a few vacant retail spaces in the city now. 0 Ms. Heppner explained that she does not want to be a landlord. The owners of the spaces will have a vested interest in the property. Commissioner Jacobson noted that in the contract it says they need to have a decision from the EDA by February 9, 2007. He asked why they are in a hurry. Mr. Hugeback indicated they would like to be under construction by summer. Commissioner Jacobson stated that he would like to keep the lot the way it is and keep looking for a restaurant. Commissioners Knight and Trude concurred with Commissioner Jacobson. Commissioner Orttel would like to see a restaurant there also but the lot has been sitting there for a long time. He asked Mr. Hugeback if there is a problem with the other site. Mr. Hugeback felt that the other site would be better for a restaurant. Commissioner Trude noted that once the Sheriff's building is up we're going to need a restaurant. Commissioner Jacobson stated that if they can get a restaurant to come into their retail center he would be willing to sell the property to Ms. Heppner. The EDA agreed with Commisssioner Jacobson. Commissioner Knight noted that he would rather see this as a sit-down restaurant site 0 and look for a different location for Ms. Heppner's proposal. He felt that once Jay Street is paved the perspective would change. 0 Andover EDA Meeting February 6, 2007 - Minutes Page 3 Mr. Hugeback asked if there is an alternate site the EDA could recommend. President Gamache suggested the site north of Mr. Rudnicki's site. Ms. Heppner stated that she needs to have visibility. Mr. Dickinson indicated that staff would continue to work with Ms. Heppner and Mr. Hugeback to find other locations. He explained that the further north you go, the lower the price. Listine: Ae:reement/Northstar Partners (Lot 1. Block 2. Andover Station North) Scott Kummel, represented Town Center. Halfway through the marketing process the builders were talking about pre-leasing. We had a good idea of what we wanted to see on the site but couldn't find a developer who wanted to take the risk. He stated that they don't want a lot of exclusions. Ibis is now the middle of the construction season and they have to do some soils tests. There is no reason to have a due diligence clause in a purchase agreement. He noted they don't have any offers yet, but are confident they will. 0 If they bring someone in it's 6%. If someone else brings someone in they will want more than 3%. Mr. Dickinson asked the EDA what percentage they would be willing to look at. Commissioner Knight felt that we could potentially be paying 8 or 9%. Mr. Dickinson stated that is correct. Mr. Kummel stated that if that is the only problem it can be dealt with when it comes up. Commissioner Jacobson asked why this didn't work in the first six months. Mr. Kummel explained that the builders didn't close on the property. They are asking for a chance to bring in a bona fide developer. The first thing the developers want to know is what type of activity is on the site. Commissioner Trude noted that the EDA would want to make sure anyone you bring in would be a suitable tenant. We have some limits on who you can sell to. Mr. Dickinson explained that there are some modifications that would need to be made in the agreement. NorthStar Partners are looking at a 6-month proposal. Commissioner Trude stated that on the marketing end, we would be paying for the advertising and mail campaigns and asked that Mr. Dickinson really look at that. She also indicated that she would be willing to go more than 6 months. 0 0 Andover EDA Meeting February 6, 2007 - Minutes Page 4 Motion by Jacobson, seconded by Trude that we authorize the Executive Director and President to negotiate out a marketing contract with a commission rate of 6% with an additional 3% if it's brought in by an outside broker. Motion carried. Time Extension Reauest (Nassau Builders) Mr. Neumeister explained that Nassau Builders has a purchase agreement calling for a closing on or before February 19,2007. They have requested a six-month time extension on the purchase agreement before they make the down payment money non-refundable. Motion by Jacobson, seconded by Trude to extend the contract for 6 months and if nothing happens in six months, the price will go up. Discussion: Mr. Neumeister noted that if the day care falls apart they would like that site. That offer expires this week. Commissioner Twistol felt that the deposit should be non- 0 refundable. However Mr. Neumeister stated that if we do that, they will walk. Commissioner Jacobson withdrew his motion and Commissioner Trude withdrew her second. Motion by Jacobson, seconded by Trude to extend the contract for three months. At that point the refundable deposit becomes non-refundable. Motion carried. DDdate on Economic DeveloDment Activities Louis Rudnicki thanked the EDA for the opportunity to move to Andover. Motion by Jacobson, seconded by Twistol to adjourn. Motion carried. Meeting adjourned at 6:59 p.m. Respectfully submitted, tLt,'U4 Vicki V olk 0 City Clerk