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HomeMy WebLinkAboutMarch 17, 2009 C I T Y O F p NDOVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN. US ECONOMIC DEVELOPMENT AUTHORITY MEETING March 17, 2009 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (2/17/09 Regular Mtg.) 3. Discuss Kwik Trip Proposal p 4. Review /Approve License Agreement for Cell Tower 5. Approve Banner Design for Andover Station 6. Purchase Agreement/Letter of Intent/Progress Review 7. Other Business C I T Y 0 N ANDOVER ECONOMIC DEVELOPMENTAUTHORITYMEETING MARCH 17, 2009 -MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Gamache, March 17, 2009, 6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila (arrived at 6:03), Don Jacobson, Mike Knight, Julie Trude Absent: Commissioner Robert Nowak and Joyce Twistol Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister Public Works Supervisor /City Engineer, Dave Berkowitz Others © APPROVAL OFMINUTES February 17, 2009 Regular Meeting: Correct as written. Motion by Jacobson, Seconded by Trude, approval of the minutes as written. Motion carried unanimously. ( Bukkila, Nowak and Twistol absent) DISCUSS KWIK TRIP PROPOSAL Mr. Neumeister introduced representatives Kevin Koenig and Dreux Shopbell with Croix Oil and Darcy Erickson with SuperAmerica. They are here to voice their concerns regarding this request. Mr. Neumeister stated the report in the agenda highlights the reasons staff supports this request. Commissioner Jacobson stated in the letter from Croix Oil, they state several years ago a median cut was suggested to the City. Commissioner Jacobson does not recall that issue presented to the Council. Mr. Dickinson stated at that time it could have been related to Hanson Boulevard and Bunker Lake Boulevard which are county roads. He does not recall this issue being brought to the Council or the EDA during that time frame. Mr. Neumeister stated the median change listed in the letter was not for Jay Street but for Hanson Boulevard. Hanson Boulevard is a county road © which means Anoka County would make the decision for any median change not the City. Commissioner Trude asked Croix Oil representatives when they were aware of this project. Mr. Shopbell stated they found out last week. © Andover Economic Development Authority Meeting Minutes — March 17, 2009 Page 2 Mr. Shopbell explained their business had been down with the road construction on Hanson Boulevard and Bunker Lake Boulevard. He stated they are seeing more traffic and business is coming back up. Mr. Dickinson wanted to respond to Croix Oil's comment about not being informed until last week. Back when the project was first presented it was presented as a concept plan. Nonnally with a concept plan we don't inform everybody. Through that time frame we then came forward with another plan of which the representatives of Croix Oil were made aware of both those plans. Which were Kwik Trip and a major developer interested in developing the Kottkes parcel. For Croix Oil to say we did not keep them apprised is not a fair statement. President Gamache invited the representatives to take a few minutes to make any presentations they might have. Mr. VanTassel with Kwik Trip stated their proposal hasn't changed. Commissioner Jacobson asked Mr. VanTassel in the agreement with Eddy's Auto Body is there a time limit they are working under. Mr. Prater, Eddy's Auto Body stated 180 days is the time © limit. President Gamache stated he sees this project as a need for development of this area. The frontage road needs to be changed, it's not very useful the way that it is. Commissioner Trude questioned using a huge amount of TIF money on a project with not much payback. Commission Jacobson stated before making his decision he'd like to hear from the representatives from Croix Oil and SuperAmerica. Ms. Darcy Erickson representing SuperAmerica presented the EDA with a letter formally opposing the request by Kwik Trip. Ms. Erickson stated SuperAmercia opposes this request for several reasons. The first being it's not a unique development, it's another convenience store and won't bring a lot of jobs to the area, it represents a competitor of SuperAmerica. Second it represents poor public safety policy. Ms. Erickson stated the EDA would be providing access to a direct competitor while access has been taken away from SuperAmerica. Commissioner Jacobson asked Ms. Erickson why this situation is any different than a restaurant or a grocery store request. Ms. Erickson stated this is different since tax dollars would be used. © Mr. Dickinson stated $326,000 is the total project cost, if there was a right -of -way acquisition there would be addition costs. Also one of the property owners in the area is willing to be assessed their share of the project which would amount to about $100,000. All parcels identified in this Pankonin Addition area, including Croix Oil are included in the TIF district. This area is still part of the redevelopment area. © Andover Economic Development Authority Meeting Minutes — March 17, 2009 Page 3 Mr. Koenig stated he didn't have much to add besides what's in the letter. The proposal to help Kwik Trip is unfair and the request should be denied. President Gamache stated the work on Hanson Boulevard and Bunker Lake Boulevard was done by the County, not the City. The County has certain restrictions they put in when redeveloping an intersection. This was an intersection that needed redeveloping. As far as SuperAmerica the City has helped and participated in putting a signal light on 139 Lane. The City also participated in some of the costs for the access road to the Mobil Station. The City has done those things to help those businesses when losing access from the County. The road in fiont of Eddy's is a poor functioning road. This is a good time to spruce up this area on Bunker Lake Boulevard when someone has interest in the parcel. The new frontage road will be much safer than the one there is now. This realigned frontage road will help the redevelopment of the other parcels in the area and will help the businesses further down on Grouse Street. President Gamache stated these as benefits to the area and the entire City. Commissioner Jacobson asked Mr. VanTassel if they have considered doing the project privately or having the amount assessed. Mr. Van Tassel stated they have considered an assessment © however, they feel by giving the City right -of -way they are giving more than their fair share. Commissioner Trude asked if the cost of the project has gone up since it was first discussed. Mr. Dickinson stated the estimate for the project is likely high. Mr. Berkowitz stated with the first estimate there was no survey work involved. Since that time the site has been surveyed and more information has been gathered. Mr. Dickinson explained all the changes that have taken place in this area since 2002, particularly the addition of Target. Commissioner Knight stated he doesn't recall the City ever using TIF money for this type of project. Mr. Dickinson stated with TIF notes you are willing to facilitate and build infrastructure and this would be a public street. So instead of providing a TIF note you would be building a public street. Commissioner Bukkila stated she doesn't have a problem with the reconstruction or the access point. She's a little at odds with the duplication of business. President Gamache stated at some point in time this road needs to be changed, it's not going to stay this way forever. This road was not done right the first time. Mr. Berkowitz stated safety is a main concern and he has seen first hand traffic "shoot the gap" to get onto the current frontage ® road. As traffic increases in this area this road will need to be changed. Commissioner Jacobson questioned this project as good public policy and use of tax money as presented. Should there be a $100,000 limit on the project. He believes it's a good idea to redevelop the area but what's the best use of tax payer money. © Andover Economic Development Authority Meeting Minutes — March 17, 2009 Page 4 President Gamache asked what the cost was buying out the junkyards. Mr. Dickinson stated the cost was over 16 million. President Gamache stated buying out Eddy's would cost more than $300,000. Motion by Jacobson, Seconded by Knight, recess the EDA meeting to go to the City Council meeting and to reconvene the EDA meeting following the City Council meeting in the Council Chambers. Motion carried unanimously. (Nowak and Twistol absent) President Gamache reconvened the EDA meeting at 8:23 pm. DISCUSS KWIK TRIP PROPOSAL (CONTINUED) Commissioner Jacobson asked how Kottkes could be assessed. Mr. Berkowitz explained how the right -a -way will butt the Kottkes parcel and the improvement will be beneficial to their property. Commission Jacobson asked if the EDA should spend the money and is it a good use of tax ® money. He'd rather see the EDA set a limit of $150,000 towards the project. He stated he'd like all seven EDA members to be in attendance to vote on the project. President Gamache would like to see the project go forward. Long range for the redevelopment of this area is necessary, that's why he supports it. Commissioner Knight stated the market should decide, not the EDA. Commissioner Trude stated she has concern taking that much money out of the TIF fund for the project. Commissioner Bukkila would like more time to read through the letters presented tonight by SuperAmerica and Croix Oil. She would like the item to be brought back to the next EDA meeting so all seven members are in attendance to vote. Motion by Jacobson, Seconded by Knight, schedule EDA meeting for April 7, 2009 at 6:00 pm. Motion carried unanimously. (Nowak and Twistol absent) REVIEW /APPROVE LICENSEAGREEMENT FOR CELL TOWER Mr. Dickinson explained the draft license agreement with Verizon Wireless to locate a cellular © phone antenna in Andover Station North. This project is time sensitive since Verizon would like to get the antenna up before the baseball season starts. Motion by Jacobson, Seconded by Knight, approval of the draft authorizing the City Administrator, EDA President and City Attorney to review the final draft and authorizing the © Andover Economic Development Authority Meeting Minutes —March 17, 2009 Page 5 EDA President to sign as long as it's essentially the same as the draft. Motion carried unanimously. (Nowak and Twistol absent) APPROVE BANNER DESIGN FOR ANDOVER STATION Mr. Neumeister stated the EDA is requested to choose a banner for Andover Station North. There are five examples pictured in the packet. The EDA discussed the examples. President Gamache stated the EDA would like Main Street Designs to put together a design of a banner with the train from the #1 example, the lettering from the #3 example and the color of the banner to be green. A new example, based on discussion will be brought back to the EDA at a future meeting. PURCHASEAGREEMENTILETTER OFINTENT/PROGRESSREVIEW Mr. Neumeister gave updates on the following: © Blue Fin Pool & Spa — The store is open. Monument Sign — Staff is writing up a temporary use agreement for Louis Rudnicki and Scott Brenner regarding a space on the monument sign. Moose & Co. Grill House — Working on long term financing. Office Development — The new signs placed in Andover Station North seem be working they have generated a couple calls regarding the sites for sale. Restaurant Site — Continue to pursue Buffalo Wild Wings to purchase a lot in Andover Station North. They would prefer a site in front of Target. Dynamic Sealing Technologies — July 31 their purchase option expires. They will be requesting a time extension of 18 months. They were informed there will be a non - refundable fee with the time extension. This item will be brought to the EDA at a future meeting. OTHER BUSINESS Mr. Dickinson stated the YMCA would like to make an alteration at the Community Center. He © explained the alteration which consists of making a conference /meeting room out of the pool concession area. Motion by Jacobson, Seconded by Knight to approve the request by the YMCA to go forward with the alteration. Motion carried unanimously. (Nowak and Twistol absent) © Andover Economic Development Authority Meeting Minutes — March 17, 2009 Page 6 Motion by Jacobson, Seconded by Is'-iight to adjourn. Motion carried unanimously. (Nowak and Twistol absent) The meeting adjourned at 9:07 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary