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HomeMy WebLinkAboutNovember 18, 2008 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 18,2008 6:00 p.m. Conference Rooms A & B 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (10/7/08 Regular Mtg.) 3. Approve LMCIT Liability Coverage 4. 2009 EDA Budget Review 0 5. TIF District Cash Flow Analysis 6. Closed Session: Parkside at Andover Station Purchase Agreement Negotiations 7. Purchase Agreement/Letter of Intent/Progress Review 8. Other Business 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 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 18, 2008 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by Vice President Trude, November 18,2008,6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: President Mike Gamache, Commissioners Mike Knight, Ken Orttel, Julie Trude, Don Jacobson and Voting Resident Member Joyce Twistol Absent: Voting Resident Member Robert Nowak Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister Council Member Elect, Sheri Bukkila Others 0 APPRO V AL OF MINUTES October 7, 2008 Regular Meeting: Correct as written. Motion by Jacobson, Seconded by Orttel, approval of the minutes as written. Motion carried unanimously. APPROVE LMCIT LIABILITY COVERAGE Mr. Dickinson stated that this is an annual item. The main reason that the EDA has a policy is to provide some limits outside of the City because of our extensive development activity in the Andover Station North and South areas. Mr. Dickinson stated this is the fifth year he has brought this item to the EDA for coverage. He is identifying that we accept the monetary limits as set forth by the state statute. The EDA has adopted this in the past years and he recommends the EDA do so again. Motion by Jacobson, seconded by Orttel, to not waive the monetary limits, approve LMCIT Liability Coverage. Motion carried unanimously. 2009 EDA BUDGET REVIEW 0 Mr. Dickinson stated the EDA is technically a separate entity from the City of Andover. The City would like to see a recommendation from this board to the City Council for adoption of the EDA Special Revenue Fund. 0 Andover Economic Development Authority Meeting Minutes - November 18, 2008 Page 2 Mr. Dickinson provided other information to the EDA members, including, tax increment, project, community center construction funds (capital project funds), TIF Bond Debt Service funds, and Community Center Debt Service funds. Mr. Dickinson stated a budget request of$166,000 for revenue. It is tax incremental administration revenue and the City has the ability to go up to 10% of the administration of all the TIF District revenues that come in. The City charges less than that. Mr. Dickinson stated in 2009, the City is forcasting an intracity labor allocation of$90,000 expenditure, relative to salary. Allocation comes from a percent of various salaries that dedicate time to the EDA. Mr. Dickinson stated that other expenditures are based on history. There is one line item, Annual Dues & Licenses, that the City budgeted some funds for the EDA to participate in any outside activities. For the most part, a residual budget from when the EDA was part of Anoka County Partners. 0 Commissioner Jacobson asked how much is in the fund now. Mr. Dickinson stated $16,000. It was the EDA contribution to the Anoka County Partners, which dissolved last year. These funds are for potential partnership opportunities in 2009. If the EDA does not use it, the funds will roll into fund balance and then we have the ability to reduce it next year. It is a reserve amount. Commissioner Trude asked if the EDA could allocate a portion of the chamber dues to that fund. Mr. Dickinson stated that cUlTently the chamber dues are in that fund. Commissioner Orttel asked which line item will the chamber dues go to. Mr. Dickinson stated that it will be the dues line item in the EDA budget. Mr. Dickinson stated that there is $11,000 for Contractual Services, which is the City's contributions towards landscaping improvements and maintenance in the Andover Station Area. Commissioner Trude asked if the City still had banners to attach to the light fixtures at Andover Station. She asked ifthe EDA can use some of the funds for that next year. 0 Mr. Dickinson stated that they could use those funds. President Gamache stated he would like staff to look for banners that would be compatible with our current poles at Andover Station. 0 Andover Economic Development Authority Meeting Minutes - November 18, 2008 Page 3 The EDA members expressed interest in looking for seasonal banners for the area. Commissioner Trude stated that United Properties gave $25,000 for land near Walgreens for public improvements. She asked if that is in a special fund. Mr. Dickinson stated that it is in a fund balance. Commissioner Trude stated she would like to see a separate line in the budget for that. She expressed that it is very important to make use of that money.' The businesses in the area are expecting some form of specific area identification. Mr. Dickinson stated they can show a designation in the budget for that amount. Motion by Orttel, seconded by Gamache, approve 2009 EDA Budget Review. Motion carried unanimously. TIF DISTRICT CASH FLOW ANALYSIS Mr. Dickinson reviewed TIF District 1-1 and 1-2 with the EDA members. 0 Commissioner Orttel asked what the parameters were for TIF District 1 & 2. Mr. Dickinson stated TIF District 1-1, is the Downtown Center Area, and 1-2 is the Andover Station Area. Mr. Dickinson stated the Debt Service Requirement is the EDA obligation with the TIF District for all the bonds that were issued. The EDA has provided for 105% of debt services. Also, there are some assessments for the Jay Street Project which will come due in 2011,2012 & 2013. EDA has tax: increments coming in each year to cover the total debt, which is about $4.5 to $4.6 million. Commissioner Jacobson asked if the current economic situation today is going to have an affect on these figures. Mr. Dickinson estimated a difference of 5% and explained that is why it is required to provide 105% debt coverage. These specific TIF Districts have not experienced a down shift in tax payments. Mr. Dickinson explained that the EDA has a plan to pay for the debt. Relative to land sales, Bruggeman is under contract with the City, other items we had under contract from 2006-2008, 0 have either closed or are forcasted to. The City is expecting to close with Bruggeman on 12-31-08 for an outstanding $119,000 note. Mr. Dickinson stated the excess TIF, based on homerun estimates in these two districts, would be approximately $5.6 million. 0 Andover Economic Development Authority Meeting Minutes - November 18, 2008 Page 4 Commissioner Olitel asked what the EDA does with the excess TIF. Mr. Dickinson stated thatifthe EDA does not do a qualifying tax increment expense, those dollars are then redistributed to the City, School District, and County. Mr. Dickinson stated that ifthe City does not sell anymore property and collect from Bruggeman, the EDA will have approximately $2.4 million of excess TIF. President Gamache asked how soon does the EDA need to make a decision on what to pursue. Mr. Dickinson stated when the City officially deceliifies is when those dollars get distributed. A poliion will go out in 2012 and another poliion in 2014. Commissioner Olitel asked if it is to the EDA's advantage to find another project. Mr. Dickinson stated ifthe City didn't collect another dollar today going forward from anyone and the City got our tax collections as they are, EDA will have an excess fund balance of 0 approximately $1 million. This is a recession proof TIF District. Mr. Dickinson stated the EDA will meet its obligations and next year the EDA could talk about another project or wait. Mr. Dickinson suggested that if the EDA wanted to increase tax increment, they may want to look at moving Lot 5 or Lot 6 in Andover Station. Another potential project would be the Kottke parcel. Primarily with the TIF Budget, the EDA has oppoliunity to look at infrastructure projects, not buying property. The EDA members discussed some different oppoliunities within the TIF Districts. President Gamache stated he would like to see City staff come up with potential future projects for the EDA to look at in the future. Commissioner Trude requested a brainstorming session with staff and the EDA. Motion by Orttel, seconded by Jacobson to move to item seven on the agenda before beginning the closed session. Motion carried unanimously. 0 PURCHASE AGREEMENT/LETTER OF INTENT/PROGRESS REVIEW Mr. Neumeister updated the EDA on the following: Mr. T's Dry Cleaner - City staff continues to help with potential leads to Laura Heppner. 0 Andover Economic Development Authority Meeting Minutes - November 18, 2008 Page 5 Blue Fin Pool & Spa - East wall is now up and parking lot is in place. Moose & Co. Grill House - Obtained a building pennit on November 6th. They are hoping to open by Spring. Office Development - City staff is advertising through the MSP & CoStar websites. New For Sale signs made by the City's sign department are up and look great. Monument Sign - Electrician has been out to the site and should be ready by end of the week. Kwik Trip Convenience Store/Car Wash - Waiting for Eddy to find a place to move. Motion by Jacobson, seconded by Knight, to recess the meeting to a closed session to discuss the Parkside at Andover Station Purchase Agreement Negotiations. Motion carried unanimously. EDA recessed at 6:42 p.m. to go to a closed session. 0 The EDA returned from the closed session at 7:03 p.m. Motion by Jacobson, seconded by Knight to adjourn. Motion carried unanimously. Respectfully submitted, Anne Heppell, Recording Secretary 0