HomeMy WebLinkAboutEDA July 15, 2008 0
1685 CROSSTOWN BOULEVARD N.W. - ANDOVER, MINNESOTA 55304 - (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US
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ECONOMIC DEVELOPMENT AUTHORITY
MEETING
July 15, 2008
6:00 p.m.
Conference Rooms A & B
1. Call to Order - 6:00 p.m.
2. Approval of Minutes (6/17/08 Regular Mtg.)
3. Update on MVP Sports Academies
4. Update on Eddys/Kwik Trip
0 5. Update on Economic Development Activities
6. Other Business
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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: Economic Development Authority
CC: Jim Dickinson, Executive Director
FROM: Michelle Hartner, Deputy City Clerk
SUBJECT: Approval of Minutes
DATE: July 15,2008
INTRODUCTION
The following minutes were provided by staff for approval by the EDA:
June 17,2008 Regular Meeting
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DISCUSSION
Attached are copies of the minutes for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
Lf:~~
Michelle Hartner
Deputy City Clerk
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6 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
7 JUNE 17, 2008 - MINUTES
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9
10 A Meeting of the Andover Economic Development Authority was called to order by President Mike
11 Gamache, June 17~ 2008, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
12 Andover, Minnesota.
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14 Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie
15 Trude (arrived at 6:03 p.m.) and Voting Resident Members Joyce
16 Twistol and Robert Nowak
17 Absent: Executive Director, Jim Dickinson
18 Also present: Community Development Director, Will Neumeister
19 City Engineer, Dave Berkowitz
20 Others
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o;~ APPROVAL OF MINUTES
25 May 20, 2008 Regular Meeting: Correct as written.
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27 Motion by Jacobson, Seconded by Knight, approval of the Minutes as written. Motion carried
28 unanimously. (Trude absent)
29
30 REVIEW SITE AND ELEVATION DRAWINGS (BLUE FIN POOL & SPA)
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32 Mr. Neumeister presented the architectural/site design for Blue Fin Pool & Spa. He explained
33 the elevation drawings. Mr. Rudnicki, owner of the strip mall has seen the plans and agreed with
34 the revisions. Mr. Brenner stated the brick on the building will match Mr. Rudnicki's strip mall.
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36 Commissioner Trude indicated the turning radius needs to be checked. Mr. Neumeister stated
37 that will be checked and some curb may be moved.
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39 President Gamache asked Mr. Brenner how many customers he usually serves. Mr. Brenner
40 replied an average weekend he'd serve 100 customers, less during the week.
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42 Motion by Jacobson, Seconded by Trude, approval of architectural design and site plan for Scot
43 Brenner (Blue Fin Pool & Spa) as presented. Motion carried unanimously.
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0 Andover Economic Development Authority Meeting
Minutes - June 17, 2008
Page 2
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2 DISCUSS CHANGES IN ALLOWABLE USES/POTENTIAL LAND SALE TO EDDY
3 PRATER (CONTINUED)
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5 Mr. Neumeister stated at the last EDA meeting the board had suggested Mr. Prater look at the lot
6 located at 139th Avenue and Jay Street. This parcel is not large enough for the building Mr.
7 Prater would like to build. Mr. Neumeister presented a concept plan with Mr. Prater building on
8 the MVP Sports Academy parcel. The parcel would be split into three lots.
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10 Commissioner Trude asked if that parcel should be broken up. Mr. Neumeister stated another
11 option would be to move the property line on parcel 2 making that parcel larger.
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13 Commissioner Jacobson stated the commitment with John Larkin is active until July 15th.
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15 The EDA agreed they are open to changes in the allowable uses in Andover Station North
16 allowing auto oriented repair and retail.
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019 UPDATE ECONOMIC DEVELOPMENT ACTIVITIES
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21 Mr. Neumeister updated on the following:
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23 Day Care Site - The walls are up and roof trusses are on.
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25 Moose & Co. Grill House - They need to make a slight adjustment regarding parking or a shared
26 parking agreement with the bank.
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28 K wik Trip Convenience Store - They have a signed letter of intent from Eddy's Auto Body,
29 subject to Eddy's finding a new location.
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31 Monument Sign - Footings for the sign are in.
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34 POWERPOINT PRESENTATION
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36 Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting
37 adjourned at 6:55 p.m.
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o:~ Respectfully submitted,
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43 Michelle Hartner, Recording Secretary
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1685 CROSSTOWN BOULEVARD N,W, - ANDOVER, MINNESOTA 55304 - (763) 755-5100
FAX (763) 755-8923 - WWW.CI.ANDOVER,MN.US
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TO: EDA President and Board
CC: Jim Dickinson, Executive Director
FROM: Will Neumeister, Director of Community Deve opment (,(/ L
SUBJECT: Update on MVP Sports Academies
DATE: July 15,2008
INTRODUCTION
The original purchase agreement had officially expired. As of April 15th, the EDA granted a
three-month time extension to allow John Larkin the opportunity to secure fmancing for his
project. That time period has now lapsed and staff has begun to work on marketing the property
to others who may be interested. The EDA needs to decide if there is any.more interest in
0 allowing more time for Mr. Larkin to fulfill his intention to buy Lot 1, Block 1, Andover Station
North.
The original letter of intent from John Larkin was approved by the EDA on March 20, 2007 and
the original closing date was set for August 1, 2007. There have been many time extensions
approved before the latest one in April.
ACTION REQUESTED
The EDA is requested to give direction on whether a time extension will be approved for Mr.
Larkin once again or not.
Respectfully submitted,
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Will Neumeister
Cc: John Larkin, C/o Sunland Security, 17308 Roanoke St. NW, Andover, MN 55304
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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
CC: Jim Dickinson, Executive DirectoF
FROM: Will Neumeister, Director of Community Development d
SUBJECT: Update on Eddys/K wik Trip
DATE: July 15,2008
INTRODUCTION
As was discussed on June lOth staff has taken direction from the EDA to begin working with Eddy and
Jim Prater to determine what type of building would be acceptable for the lot they would like to
purchase in Andover Station North. The attached photos are similar to what they would like to build
for their auto repair service. First phase would look like the TSI building and if they are able to secure
enough other tenants, then they would build the second phase to look like that shown in the strip mall
photo. They are willing to work with the City EDA on perfecting the architectural design details.
They understand that all vehicles in need of service would need to be kept inside at all times. They
also know that if they would like to pursue any auto sales, they also would need to be kept inside.
0 DISCUSSION
EDA is requested to review the attached photos and provide comment on whether the approach they
are proposing is acceptable. If the EDA fmds this acceptable, please direct staff to begin working with
the Praters on a "Letter of Intent" on the lot located east of the ballfields to allow auto related repair
facilities to operate there. Also needed would be a change in the allowable uses in the Design
Guidelines for Andover Station North.
Based on comments from EDA members at previous meetings, staff has modified the sketch of what
could be done to put Eddy's repair facility on the lot. The Praters are thinking about purchasing part
of the parcel and also writing an option on the balance of the remaining land. The second phase of
their land purchase would be to create an auto-services related mall. Including a retail parts store, car
wash, sound system installer, car rental, insurance agency. They have indicated that they would be
interested in developing the entire auto mall but it would be done as they generate interest from other
auto service related business owners.
ACTION REQUESTED
The EDA is asked to review the Prater's photos and request and determine if the EDA will accept what
they are proposing in Andover Station North.
Respectfully submi~
Will Neumeister '
Attachment: Photos and Concept Drawing
0 Cc: Eddy Prater, Eddys Autobody, 1786 Bunker Lake Blvd., Andover, MN 55304
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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
TO: EDA President and Board
CC: Jim Dickinson, Executive Directo
FROM:
SUBJECT: Update Economic Development Activities
DATE: July 15,2008
INTRODUCTION
This memo is provided as an update for all economic development activities related to Andover Station North:
Funeral Home (Thurston-DeShaw) - They're open for business.
Day Care Site (Griffen Business Holdings) - They are starting to work on putting up the interior walls and would
like to be done with construction by the end of August.
Dry Cleaners Site (Golden Eagle II) - The EDA approved the site and architectural plans. The CUP was approved
for dry cleaner processing and drive-thru on July 1 st .
0 MVP Baseball (John Larkin) - A 90-day time extension was approved on April 15th and it has expired.
Blue Fin Pool & Spa - The purchase agreement has been signed and they have paid the $5,000 down payment.
They obtained architectural and site plan approval at the EDA meeting on June 17th. They are getting their fInancing
for an SBA loan.
Moose & Co. Grin House - They purchased the property on April 1 st. The CUP for the on-sale liquor was approved
by the City Council on April 15t1i. They are working on a Commercial Site Plan application and have submitted for a
building permit.
Light Industrial Building (Dynamic Sealing Technologies) - The walls are up and the roof is on the 30,000 square
foot light industrial building. Their goal is to be :finished and occupy the building by late August. Work is moving
right along on schedule.
OffICe Development - Staff have begun marketing the site through the new MSP website. Staff will continue to
market the site and if any potential buyers surface we will bring forward any and all offers.
Kwik Trip Convenience Store/Car Wash - They have a signed letter of intent from Eddy's Auto Body to buy the
land. At the EDA meeting this evening more discussion will occur with the EDA on the Eddy's move to a site in
Andover Station North and whether the uses list will be modifIed or not.
Monument Sign - LeRoy Sign Company have begun building the sign along Bunker Lake Blvd. and it willbe done
by the middle of July.
ACTION REQUESTED
0 No action is needed, this is only an informational update.
Respectfully sUbmi~
Will Neumeister
1685 CROSSTOWN BOULEVARD N.W, - ANDOVER, MINNESOTA 55304 - (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US
TO: President & EDA Board Members
FROM: Jim Dickinson, Executive Director
SUBJECT: Supplemental Agenda Item for July 15, 2008 EDA Meeting
DATE: July 15, 2008
The EDA is requested to receive the following supplemental information.
Add-On Item. Discuss Bruggeman Properties Request (Supplemental)
C I T Y o F @-~
NDOVE 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 Development Director ~
SUBJECT: Discuss Bruggeman Properties Request
DATE: July 15,2008
INTRODUCTION
Please refer to the attached letter from Bruggeman Properties dated July 1, 2008 requesting a lowering
of the land sales price on approximately 14 existing units to help them in the Parade of Homes this fall.
DISCUSSION
The developer is trying to remain as competitive as possible in this very challenging market for selling
townhomes. They need to know the answer to their request as soon as possible in order to put their Ad
in the next Parade of Homes listing magazine. Staff will provide their comments and recommendation
at the EDA meeting.
ACTION REQUESTED
The EDA is asked to review the request and provide direction to staff on whether they will entertain
Bruggeman's request or not.
Respectfully sUbm:,-~
Will Neumeister
Attachment
Letter from Bruggeman Properties
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July 14, 2008
Mr. Will Neumeister
Andover Economic Development Authority
1685 Crosstown Blvd. N.W.
Andover, MN 55304
Re: Parkside at Andover Station
Dear Will,
As you may be aware, home sales within Parkside at Andover Station continue to remain sluggish. In
addition to problems created by the national and local real estate market slowdown, buyer traffic is being
impacted by construction on Hanson Boulevard. We have had no qualified purchase agreements to date
in 2008.
We are entering the Fall Parade of Homes with very aggressive pricing that is below our breakeven point.
The price for the interior villa townhome will be $149,900, which had an original price of $174,900, Our
competitor in Ramsey is selling a similar unit for $128,900 which we believe is substantially below cost.
Also, the Afton detached townhome will be priced at $229,900 and the Lanesboro detached townhome will
be priced at $245,100. This pricing for the detached townhomes reflects a $40,000 reduction from original
prices.
We respectfully request the EDA's assistance with further price reductions. We are asking the EDA to
consider a reduction in the principal release price for the 12 built villa townhomes and the 2 built detached
townhomes. The current principal release price is $15,500 per unit. In consideration for any principal
reduction granted by the EDA, Bruggeman Homes will decrease the home price by the amount.
We greatly appreciate the continuous support the Andover EDA has demonstrated and your careful
consideration of this proposal. Please contact me if you have any questions.
Sincerely,
LV.
Gregory W. Schlink
Bruggeman Properties, LLC