HomeMy WebLinkAboutEDA - February 3, 2010
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
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
February 3,2010
6:00 p.m.
Conference Rooms A & B
1. Call to Order - 6:00 p,m,
2. Approval of Minutes (January 5, 2010)
3, Purchase Agreement/Letter of Intent/Progress Report
4. TIF Project Fund Discussion
5. Other Business
6, Adjournment
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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: Economic Development AuthoritY.
CC: Jim Dickinson, Executive Director
FROM: Michelle Hartner, Deputy City Cle
SUBJECT: Approval of Minutes
DATE: February 3, 2010
INTRODUCTION
The following minutes were provided by Staff for EDA approval:
January 5, 2010 Regular Meeting
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
~~
Michelle Hartner
Deputy City Clerk
Attach: Minutes
1
2
3
4
5 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
6 JANUARY 5,2010 - MINUTES
7
8
9 A Meeting of the Andover Economic Development Authority was called to order by President Mike
10 Gamache, January 5, 2010, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
11 Andover, Minnesota.
12
13 Present: Commissioners Don Jacobson, Sheri Bukkila, Mike Knight, Julie
14 Trude, Robert Nowak, Joyce Twistol
15 Absent: None
16 Also present: Executive Director, Jim Dickinson
17 Community Development Director, Will Neumeister
18 Public Works Director/City Engineer, Dave Berkowitz
19 Fire Chief, Dan Winkel
20
21
22 APPROVAL OF MINUTES
23
24 November 17, 2009 Regular Meeting: Correct as amended
25
26 Commissioner Trude stated on page 2, line 6 the word "billing" should be changed to payment.
27
28 Motion by Trude, Seconded by Knight, approval of the minutes as amended. Motion carried
29 unanimously.
30
31 ORGANIZATIONAL ITEMS
32
33 Motion by Jacobson, Seconded by Bukkila, to reappoint EDA Officers. Motion carried
34 unanimously.
35
36 President - Mike Gamache
37 Vice-President - Julie Trude
38 Secretary - Don Jacobson
39 Treasurer - Mike Knight
40 Assistant Treasurer - Sheri Bukkila
41 Resident Commissioner - Robert Nowak Sr.
42 Resident Commissioner - Joyce Twistol
43 Recording Secretary - Michelle Hartner
44 Executive Director - Jim Dickinson
45
46 REVIEW 2010 CDBG APPLICATION
47
48 Mr. Neumeister explained the CDBG grant application will be for installation ofwatermain
Andover Economic Development Authority Meeting
Minutes - January 5, 2010
Page 2
1 down 138th Avenue and Xavis Street. The County guidelines allow you to request a maximum of
2 $300,000 in a single year,
3
4 Commissioner Trude suggested putting the watermain in but only hooking up the residents when
5 they ask. She does not want to assess the low income residents. Phase II could be Bunker Lake
6 Boulevard.
7
8 Mr, Dickinson indicated the project is within the TIF District which allows TIF funds to be used
9 to bridge the gap ofthe CDBG grant.
10
11 Commissioner Jacobson asked if money that comes from the CDBG grant and TIF funds has to
12 be used for infrastructure. Mr. Dickinson indicated that is correct.
13
14 Commissioner Jacobson indicated a couple years ago this area was discussed for redevelopment.
15 Mr. Dickinson stated he does not see a developer coming into this area to redevelop for 10 - 15
16 years.
17
18 Mr. Berkowitz explained the project. He indicated if the area was redeveloped the infrastructure
19 would be saved because there is value to it. He believes the infrastructure will stay intact if
20 redevelopment does occur.
21
22 Fire Chief Winkel explained why having a water supply in this area is a good idea especially for
23 fire protection.
24
25 Commissioner Jacobson asked what part ofthe project could be done with only using the
26 $300,000 grant money. Mr. Berkowitz explained the project costs and the estimated cost for
27 each resident to hook up to city water.
28
29 Mr. Dickinson explained the amount of dollars in the TIF funds available for projects.
30
31 Commissioner Trude asked what the process would be to get water to the houses on Bunker Lake
32 Boulevard and would the street need to be torn up. Mr. Berkowitz indicated the street would not
33 necessarily have to be tom up, however there is an eight foot wide trench for private utilities that
34 runs along the front of the homes that creates a challenge to work around.
35
36 Commissioner Jacobson asked if they receive the grant money and decide not to do the project
37 what happens to the money. Mr. Dickinson indicated he would try to reallocate the funds to
38 another project within the City, otherwise the funds would be turned back to the County,
39
40 Mr. Dickinson indicated staff has put together a project that has strong potential to get the grant
41 funds.
42
43 Assessments to property owners for water hook up were discussed,
44
Andover Economic Development Authority Meeting
Minutes - January 5, 2010
Page 3
1 The EDA recommended staff to move forward with the grant application for $300,000,
2
3 PARKSIDE AT ANDOVER STATION NEGOTIATION UPDATE
4
5 Mr. Dickinson updated the EDA on Parkside at Andover Station, He stated discussions with
6 Premier Bank have discontinued due to Bruggeman having a judgment against them from
7 another bank. The City will try and seek some release from the other bank.
8
9 PURCHASEAGREEMENTILETTER OF INTENT/PRGRESS REPORT
10
11 Mr. Neumeister updated on the following:
12
13 Foundation Hill Montessori School/Daycare - Owner, Murli Nagwani has indicated he plans to
14 expand his building this summer.
15
16 OTHER BUSINESS
17
18 Mr, Dickinson indicated the Andover Station North Owners Association held their armual meeting
19 January 5, 2010 at 4:30 p.m. Officers were appointed and armual assessments for all property
20 owners were discussed and agreed to.
21
22 Motion by Knight, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting
23 adjourned at 6:50 p,m,
24
25 Respectfully submitted,
26
27 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
TO: EDA President and Board
FROM: Jim Dickinson, Executive Director
SUBJECT: Purchase Agreement/Letter of Intent/Progress Review
DATE: February 3, 2010
INTRODUCTION
This memo provides a brief update of all development activities in the Andover Station area:
Parkside at Andover Station: Staff continues to follow up with Bruggeman Homes and
Premier Bank to monitor progress.
Banners for Andover Station North: - The barmers and arms were ordered and have arrived.
When the weather cooperates and Public Works time becomes available, we will have the
public works crew put them up.
Moose & Co. Grill House - The owners continue to work to sell the site. Staff continues to
follow up with the owners to maintain the site.
Office Development and Retail Development Sites - No inquiries to report,
Monument Sign (small one) - Louis Rudnicki and Scott Brenner have the signed agreement.
The new panels on the small sign were just recently updated per the agreement.
Kwik Trip Motor Fuel/Convenience Store/Car Wash - The "Commercial Site Plan" has
been approved and they closed on the property on December 22nd. Spring construction is
plarmed; staff continues to work through with K wik Trip, Kottkes and the Praters to move the
street realignment along,
Annual Meeting of the Andover Station North Owners Association - The armual meeting
was held at 4:30 p,m. on January 5, 2010 at City Hall. Staffis working through some of the
concerns that came up at the meeting such as street lighting, putting timers on the lighting of
the monument signs, and coordinating the armual association assessment dues.
ACTION REQUESTED
This is an informational update only, no action is requested.
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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CLANDOVER.MN.US
TO: President and Commissioners
FROM: Jim Dickinson, Executive Director
SUBJECT: TIP Project Fund Discussion
DATE: February 3, 2010
INTRODUCTION
The EDA is requested to receive a detailed presentation on the City Tax Increment Financing (TIP)
Project Fund.
DISCUSSION
The presentation will use the following outline:
1. Current TIP Cash Flow Analysis
2, TIP District Durations
a. Early Decertification
i. District 1-1 - expires 2012
ii. District 1-2 - expires 2014
b, Available Increment Distribution
i. City allocation
3. Tax Increment Revenues - Defined
a. Land Purchases & Land Sales
1. Pre-1997
11. Post 1997
b. Interest Earnings
i. Pre-1997
ii. Post 1997
4. Future Projects - Are there any?
If any of the Commissioners would like a one on one discussion with me on the attached financial data, I
would be more than happy to do so,
ACTION REOUESTED
Receive a presentation and provide direction to staff,
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Governor Carlson signed the 1997 "Tax Bill" on June 2, 1997.
It is Laws of Minnesota for 1997, Chapter 231, and its Article 10
contains the following tax increment changes.
I. New Definition of "Tax Increment". The terms increment, tax
increment, tax increment revenues, revenues derived from tax
increment and "other similar terms" are now defined to
include:
(A) "Raw" tax increments, meaning the taxes generated by
the captured net tax capacity which are payable to the
TIP authority, but excluding any excess taxes, as
computed under Section 469.177;
(B) The proceeds from the sale or lease of any property,
real or otherwise, which was purchased by the
authority with tax increments;
(C) The repayments of any loans or other advances made
from tax increments; and
(D) Interest or other investment earnings on tax
increments.
There are two effective dates for this change, and they are
important. Items (A) and (D) above, dealing with "raw"
increment and the investment earnings on increment, are
effective only for post-July 31, 1979 districts and for earnings
received after July 1, 1997.
Items (B) and (C) above, proceeds from the sale or lease of
property which was purchased after June 30, 1997, and
repayments of loans that were made after June 30, 1997, are
classified as increment, but this applies only to increment from
districts requested for certification after June 30, 1982.
n. "Small Cities" Get A "Commercial" Break: Economic
Develo>>ment Districts. Small cities can now establish
economic development tax increment districts to provide
assistance to up to 15,000 square feet of commercial facilities,
which is a use that otherwise would not generally qualify for
economic development district treatment.
"Small city" means a city having a population of 5,000 or fewer
residents that is not located within 10 miles of a Minnesota
city with a population of 10,000 or more. The distance
between the two cities must be measured by drawing a straight
line from the nearest municipal boundaries. Population is to
1997 Tax Increment Legislative Changes
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Pre-1997 Land Purchases
Owner PIN's Address Purchase Date Purchase Sale
Festival Foods Site
M.R.Olson 34.32.24.32.0005 & 0006 2148 & 2274 8lB $ 393,546.76 11/1/1995 $ 393,546.76
Tax Ladies, Inc I C Heidelberger 34.32.24.31.0014 & 0018 I 13.504,00 8/20/1996 I 13,504,00
Total $ 407,050.76 $ 407,050.76
UP - Festival Foods Site $ 2,061,401.60 $ 2,061,401.60
T~~~~!.!gi~~~~.Si~~
A TV - William Packard 34.32.24.31.0003 & 0005 $ 306,524.20 3/25/1996 $ 306,524.20
Liesinger 34.32.24.31.0004 & 0019 $ 153,734.61 6/17/1996 $ 153,734.61
Less 1/3 for Bruggeman $ (51.244,87) $ (51,244.87)
Anoka Co - Tax Forfeit 34.32.24.31.0009 & 0011 $ 20,715.50 7/5/1995 $ 20,715.50
Less 1/2 for Bruggeman $ (10,357.75) $ (10,357.75)
Mom's - Parmak - M.Heidelberger 34.32.24.31.0012 & 0017 $ 36,718.18 3/26/1998
Mom's ~ Parmak - M.Heidelberger 34.32.24.31.0022 298,053.38 12/2/1997
$ 334,771.56
Wilber Auto Parts 34.32.24.42.0002 & 0007 from below $ 338,266.49 1/2/1997
Best Auto - Richardson, Terrance & Lo 34.32.24.42.0006 $ 412,032.20 11/21/1995 $ 412,032.20
Mistelske - Commercial Auto 34.32.24.42.0008 & 0009 from below $ 300,000.00 7/16/1996 $ 300,000.00
BBP Investment, Inc - Pears, Robert & Bonnie from below $ 103,842.00 1/8/1996 $ 103,842.00
Anoka Co - Tax Forfeit 34.32.24.11.0003 $ 140,500.00
Anoka Co - Tax Forfeit 34.32.24.12.0003 140,500.00
$ 281,000.00 2/8/1999
Total $ 2,189,283.94 $1,235,245.89
56%
UP - Target Site $ 3,211,056.63 $ 1,811,754.26
!y~i__~ii~.i~~i~gge~~ni:.I~~e~~~~.te
R. Heidelberger 34.32.24.31.0006 & 0016 $ 107,135.00 7/16/1996 $ 107,135.00
Liesinger 34.32.24.31.0004 & 0019 from above $ 51,244.87 6/17/1996 $ 51,244.87
Anoka Co - Tax Forfeit 34.32.24.31.0009 & 0011 from above $ 10,357.75 7/5/1995 $ 10,357.75
David Heidelberger 34.32.24.31.0008 $ 48,349.00 5/5/1995 $ 48,349.00
Total $ 217,086.62 $ 217,086.62
BruggemanlVet Clinic Site $ 868,356.15 $ 868,356.15
lTa.tln.e~(l:~~a_~~~9.f'I'i.~~_~!t.e.
John A Sandeen 34.32.24.42.0001,0004, & 0005 $ 470,000.00 7/18/1995 $ 470,000.00
Wilber Auto Parts 34.32.24.42.0002 & 0007 $ 845,666.23 1/2/1997
Less 40% for Target S (338.266.49)
Mistelske - Commercial Auto 34.32.24.42.0003 $ 302,500.00 7/16/1996 $ 302,500.00
Mistelske - Commercial Auto 34.32.24.42.0008 & 0009 $ 750,000.00 1/20/1998
Less 40% for Target S (300,000.00)
BBP Investment, Inc - Pears, Robert & 34.32.24.42.0010 $ 259,605.00 1/8/1996 $ 259,605.00
Less 40% for Target S (103.842.00) $ (103.842,00)
Total S 1.885,662.74 $ 928,263.00
49%
Tannersffheatre!Office Site $ 738.579.90 $ 363,583.78
Anoka Auto 34.32.24.14.0001 $ 1,822,947.97 1211/2000
$2,787,646.27 $ 5,105,095.79
--, ~_._-------,."
CITY OF ANDOVER
TIF Districts - Pre '97 Interest Income & Land Sales
Land
Interest Sale
1987 1,686
1988 3,641 70,081
1989 2,031
1990 3,593
1991 1,862
1992 61,739 38,228
1993 120,830
1994 34,095 26,786
1995 31,386
1996 331,821
592,684 135,095
727,779