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HomeMy WebLinkAboutApril 7, 2009 C II T Y ` 0 F NDO © 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 (763) 755 -5100 FAX (763) 755 -8923 • WWW.CLANDOVER. MN. US ECONOMIC DEVELOPMENT AUTHORITY MEETING April 7, 2009 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (3/17/09 Regular Mtg.) 3. Discuss Kwik Trip Proposal, Continued 4. Other Business �t r V T Y O F DOVE ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 7, 2009 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Gamache, April 7, 2009, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila, Don Jacobson, Mike Knight, Julie Trude, Robert Nowak and Joyce Twistol Absent: None Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister Public Works Director /City Engineer, Dave Berkowitz City Attorney, Scott Baumgartner Others APPROVAL OFMINUTES March 17, 2009 Regular Meeting: Correct as written. Motion by Jacobson, Seconded by Trude, approval of the minutes as written. Motion carried unanimously. (Nowak and Twistol present) DISCUSS KWIK TRIP PROPOSAL, CONTINUED Mr. Dickinson stated a supplemental item was submitted for the record that includes comments from Commissioner Twistol. Mr. Dickinson stated this project was discussed at length at the March 17, 2009 meeting. Mr. Dickinson gave a brief presentation of the project. Eddy's Auto Body has a pending sale with Kwik Trip. The deal is contingent upon the realignment of an existing frontage road. Staff is looking to see if there is EDA support for a commitment to realign the frontage road. As far as the proposal, Kwik Trip is offering to donate as part of the project the right -of -way and the ponding area to facilitate the realignment. In exchange the City would vacate the current frontage road easement but the City would retain utility easements on the property. The project includes a median opening on Jay Street. The estimated project cost is $326,000. Staff supports this project and feels the project is good Public Policy for the following reasons: Removes blight Improves roadway safety © Andover Economic Development Authority Meeting Minutes — April 7, 2009 Page 2 Improves community image Fulfills the original intent of the Andover Station redevelopment area Improves the potential of development of land in the vicinity Mr. Dickinson stated staff is looking for a cormmitment from the EDA for the project and a financial commitment for the realignment of the frontage road. Commissioner Trude asked what amount could be assessed. Mr. Dickinson speculated that the dollar amount could range from $75,000 to $100,000 that could be assessed. Mr. Dickinson explained the cost of the project. Commissioner Nowak asked for further explanation of what the Kwik Trip buildings located on the map would be. Mr. Neumeister explained Kwik Trip would consist of a pump island, the main building and a car wash. Commissioner Twistol asked about the Kottke's bus traffic on Jay Street. Mr. Neumeister stated most of the bus traffic does go south on Jay Street, but some does go north. Commissioner Twistol asked who'd be responsible if there was environmental waste found on the parcel. Owner of Eddy's Auto Body responded there was no hazardous waste and the EDA had issued a report when Eddy's refinanced two years ago. Mr. Dickinson anticipated that would be handled between Kwik Trip and Eddy's through the due diligence process. Commissioner Bukkila asked how long before the City would see payback for this project. Mr. Dickinson stated it would depend on future development in this area and the level of financial commitment; the City could be looking at 10 -15 years. Mark Ogren, Croix Oil Company, went over the history of road construction done in the last ten years that has affected his business. He stated Croix Oil has paid over $52,000 for an assessment that had no benefit to his business. He doesn't have a problem with competition coming into the City; he feels the City shouldn't use tax money to pay for the project. He would like the EDA to deny the Kwik Trip proposal. Darcy Erickson representing SuperAmerica stated they have two concerns the first one is this project represents poor public policy, using tax money for a project that benefits one business and not giving to another is unfair. Their second concern is the public safety policy. Ms. Erickson stated she has never heard that a full directional access is safer. She noted there has been no engineering traffic study done. Ms. Erickson would like the EDA to carefully consider the public policy and public safety considerations that are at play. © Commissioner Trude asked City Attorney, Scott Baumgartner if this project would have to be a 429 project in order to assess property. Mr. Baumgartner stated to assess it would need to be a 429 project, with the land owner dedicating the right -a -way and ponding land this could equate as their required contribution. Mr. Dickinson explained the assessment process. © Andover Economic Development Authority Meeting Minutes — April 7, 2009 Page 3 Commissioner Jacobson stated the real issue being, is this good public policy using tax payer's money to fund this project. He feels Kottke's is not going to come through paying a large assessment for this project and the EDA could get stuck paying more than anticipated for this project. He stated if the motion was to participate and there was a cap of $125,000 he would be interested, but without a cap he would not vote to have this move forward. President Gamache stated he supports this project. The current road is not a good road alignment and needs to be redone. He does not see this as a $300,000 expenditure but as a savings to the City of about a half a million dollars, since that is what it may cost the City in the future to move Eddy's. Commissioner Nowak stated the $326,000 is just an extension of the 16 million that was spent in the Andover Station area, this expenditure and project would be going in the same direction the EDA had set forth years ago to improve the City. Commissioner Trude stated she does not support this project. She thinks there will be three © struggling businesses. Commissioner Twistol stated she is in support of this project, believing this is a small expenditure given the long term value of it. Motion by Gamache, Seconded by Bukkila, to assist in the project cost for realigning Bunker Lake Boulevard frontage road and modifying the median at Jay Street with an EDA contribution cap of $150,000. Motion carried 6 ayes and 1 nay ( Trude). Commissioner Jacobson indicated that he would not want to commit any more dollars to the project than the $150,000 and indicated Kwik Trip, Eddy's and Kottke's will need to cover more project costs. Commissioner Nowak and President Gamache indicated the EDA should be kept apprised of the project costs and progress. Motion by Jacobson, Seconded by Bukkila to adjourn. Motion carried unanimously. The meeting adjourned at 7:03 p.m. Respectfully submitted, , A 6d E -� C4&'t LVL, Michelle Hartner, Recording Secretary