HomeMy WebLinkAboutEDA February 1, 2005
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1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER.MN,US
CITY OF ANDOVER
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
February 1, 2005 - 6:00 p.m.
Conference Room A & B
AGENDA
1. Call to Order
2. Approval of Minutes - January 18, 2005
3.
Updates on Letters of Intent - Administration/Planning
4.
Other Business
5. Adjourn
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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 Department Authority
CC: Jim Dickinson, Executive Director
FROM: Vicki V olk, City Clerk
SUBJECT: Approval of Minutes
DATE: February 1,2005
INTRODUCTION
The following minutes were provided by TimeSaver for approval by the EDA:
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January 18, 2005
Regular Meeting (Larsen, Nowak, Schultz absent)
DISCUSSION
Attached is a copy of the minutes for your approval.
ACTION REQUIRED
The EDA is requested to approve the minutes of January 18,2005.
Respectfully submitted,
ILL, f);!k
Vicki Volk
City Clerk
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DRAFT
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
JANUARY 18,2005 -MINUTES
A Meeting ofthe Andover Economic Development Authority was called to order by President Mike
Gamache, January 18, 2005, 6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Present:
Absent:
Commissioners Don Jacobson, Ken Orttel, and Julie Trude
Commissioner Mike Knight, Voting resident members Fred
Larsen, Robert Nowak and Non-voting resident member Edward
Schultz.
Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
City Engineer, Dave Berkowitz
Others
Also present:
APPROVAL OF MINUTES
January 4, 2005: Correct as amended.
Commissioner Trude noted a change on page 3, under Approve Andover Station North Guidelines,
third paragraph, second sentence stated "Commissioner Trude stated the need to add a residential
standard to the guidelines". She noted this was not what she said, "They need to add residential
standards at the beginning of section two which limits the standards to general business,"
MOTION by Jacobson, Seconded by Trude, approval ofthe Minutes as amended, Motion carried
unanimously.
APPROVE ANDOVER STATION NORTH DESIGN GUIDELINES, CONTINUED
Community Development Director Neumeister explained at the last meeting there were
suggestions made by the EDA regarding the Andover Station North Design Standards. Based on
comments from the City Attorney, these guidelines will need further revision and will need to be
brought back one more time for further review.
Mr. Neumeister discussed the changes with the City Council.
Commissioner Trude suggested when staff talks to the City Attorney, Mr. Neumeister points out
that this is the situation at Andover Station South and they cannot come in and use the sign
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Andover Economic Development Authority Meeting
Minutes - January 18, 2005
Page 2
ordinance ifthe Station Guidelines had a different standard. Mr. Neumeister thought the City
Attorney told him if they wanted to be more restrictive, they can.
Commissioner Orttel wondered if they were concerned with some adult type businesses, Mr.
Neumeister was not sure.
Mayor Gamache stated his only concern was if a lot of changes are made they follow through on
the south side for uniformity.
Mr. Neumeister stated the City Attorney suggested making these as guidelines instead of
covenants for the property.
Commissioner Trude had a couple of items she wanted to discuss generally. She noted the
monument sign and buildings further back should have taller signs.
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Commissioner Trude wondered if they are going to use the same type oflamps as in the south
area because she did not think there would be shoppers walking around, Mr. Berkowitz stated
they are proposing to use the acorn type lights.
Commissioner Trude thought they should have some regulation regarding flashing, blinking
lights on monument signs. She thought this is kind of tacky and did not think they should be
allowed in the area.
DISCUSS ANDOVER STATION NORTH DEVELOPMENT PROGRESS
Community Development Director Neumeister stated over the past few months staff met with
local developers interested in looking at the possibility of building a variety of different buildings
in Andover Station North. There has been progress made in regard to receiving "letters of intent"
to buy land and develop in this exciting new development area. The developers that have shown
interest are planning to develop concurrently with the first phase of the construction of utilities
and streets. Provided the EDA accepts the "letters of intent" and directs staff to prepare a
purchase agreement, the City would be on track to construct at least the first phase of Jay Street
in the summer of2005.
Commissioner Trude thought anything around the bank should be treated like an entryway into
the development.
Mr. Neumeister stated Opidan's offer would be conditioned on whether or not they have to have
.:) a restaurant. They do not want to be held for only a restaurant in this area.
Mr. Dickinson wondered if the EDA wants to hold a condition on a restaurant in the particular
parcel or within the development.
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Andover Economic Development Authority Meeting
Minutes - January 18, 2005
Page 3
Commissioner Trude stated they want to know what will be going into the development
Mr. Dickinson wondered if the EDA would be willing to allow a spec building to be built
without exact tenants.
The. Commission discussed what the property should be sold for in different areas.
Commissioner Orttel stated this could become the business part of the City. Some of these areas
are spaced out. Land in Andover is going up twenty percent a year and he wondered if they are
getting their money out of this, He stated there is an inflationary equation that needs to be
incorporated into the cost.
Commissioner Trude wondered if they could use State Aid funds for development of the
roadway. Mr. Berkowitz stated they have other commitments in their State Aid budget He
stated they would build the road to State Aid standards but they would not have it a State Aid
roadway.
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Commissioner Orttel wondered if it was better to build the road and assess it back to the City.
Commissioner Trude thought they should hold onto the front piece of property for a restaurant
Commissioner Jacobson stated a family restaurant to him is family oriented.
Commissioner Jacobson would like them to consider putting in the entire road at one time
because it makes it easier to sell the property.
ANDOVER STATION NORTH LETTERS OF INTENT
Community Development Director Neumeister stated over the past few months, staff has been
working with local developers to sell land in Andover Station North. As a result of these
discussions we have received "Letters of Intent" to purchase.
Commissioner Orttel wondered if they would be better offwith more retail tax wise. He wanted
to know what type of anchor would be in the buildings because it will set the standards of the
area.
BRUGGEMAN LAND SALE UPDATE
t'" Community Development Director Neumeister stated over the past few months staff has been
V working with the developer, Bruggeman Properties, their Attorney and the EDA's Attorney to
write a purchase agreement for the land in Andover Station North that would be sold to them for
a towhnhome development. The final form ofthe purchase agreement that is being finalized
contains various provisions that contain the deal points that both the City and the developer feel
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Andover Economic Development Authority Meeting
Minutes - January 18, 2005
Page 4
are pertinent to achieving a successful townhome land transaction,
EDA MEMBERSHIPITERMS
Executive Director Dickinson stated the EDA at the January 4,2005 meeting requested staff to
report back to the EDA at the next meeting the current EDA membership and terms, Also
requested was for staffto research how members could be removed and new members appointed.
Commissioner Trude stated one thing they could do is to ask Mr. Larsen to resign his seat before
going forward with the removal. Mr. Dickinson stated Mr. Larsen indicated he would like to
remain on the EDA but has been very busy over the last year.
Commissioner Jacobson stated they need to have someone who is willing to attend the meetings.
Commissioner Trude stated Mr. Larsen was at one out of sixteen meetings, Commissioner
Orttel stated they need someone who will be at the meetings and participate in discussion.
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Mr. Dickinson thought they should modifY their by-laws to include attendance records and other
things that could allow quick removal of a person on the board.
Commissioner Jacobson thought Mr. Dickinson should talk to Mr. Larsen for his resignation
before going forward with the removal process.
APPOINT REPRESENTATIVE/ANDOVER STATION ASSOCIATION
Community Development Director Neumeister stated the City has received a request to have the
City representative attend a meeting of the Andover Station Owners Association meeting on
January 21,2005.
Motion by Orttel, Seconded by Jacobson, to appoint Community Development Director WilI
Neumeister as representative ofthe City to the Andover Station Owners Association, Motion
carried unanimously.
OTHER BUSINESS
Mr. Dickinson stated with the discussion tonight, he would like the Commission to schedule
another EDA meeting for February 1, 2005.
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U Motion by Trude, seconded by Orttel, to schedule an EDA meeting for February 1, 2005 at 6:00
p.m. Motion carried unanimously.
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Andover Economic Development Authority Meeting
Minutes - January 18, 2005
Page 5
Motion by Orttel, Seconded by Trude, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:55 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary
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TO:
1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
EDA President and Board "",-,\,\
Jim Dickinson, Executive DirectoQ
Will Neumeister, Director of Community Development/~
FROM:
SUBJECT: Andover Station North Letters ofIntent -- Planning
DATE:
February 1, 2005
INTRODUCTION
As had been indicated at the last EDA meeting, additional "Letters of Intent" were
forthcoming and the EDA needs to review them and provide staff direction on whether there
is interest in preparing purchase agreements on the particular parcels that the individuals are
seeking to acquire (see attachments).
DISCUSSION
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\. _J Provided the EDA agrees to the terms and conditions contained in the "Letters of Intent", the
EDA would need to authorize the City Attorney to prepare purchase agreements with the
individuals or companies that have shown interest in purchasing land in Andover Station
North.
Michael Casey (North Star Glass) is working with his attorney to finalize a "Letter of Intent"
that will be brought to the EDA meeting on Tuesday night. If it is available on Monday, it
will be FAXED to EDA members. His attorney has been out of town and that is the cause of
the delay. Another "Letter of Intent" from a local developer is also expected sometime
between the time this is written and Tuesday evening.
ACTION REQUESTED
Staff requests the EDA to review the newest "Letters of Intent" and direct the City Attorney to
prepare purchase agreements for those that there is interest in pursuing.
Respectfully submitted,
wed-
Will Neumeister
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Attachments
Revisions to the Letter of Intent from Tramm Builders /
Letter ofIntent from Oppidan ,/
FROM: TRAMM BUILDERS & REALTORS. LLC FAX NO. 651-636-5200
Jan. 28 2005 01:40PM P1
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AMMENDMENT TO LEITER OF INTENT VIA FAX TRANSMISSION
To: City of Andover
Will Neumeister
Community Development Director
Fr: Kim Tramm. Tramm Builders & Realtors, L.L,C.
Re: Previously tendered letter of intent
Dt: January 28, 2005
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Please let this fax transmission confirm the amendment of our previously submitted
Letter ofIntent to purchase subject land parcel(s) in the city of Andover described
therein. Accordingly, change price mentioned therein to the following price equation:
$3.65 per usable square foot All other general terms of said lot shall remain the same.
ACCEPTED
Kim 1. T rannn. president
1RAMM BUILDERS & REALTORS, L.L.C.
#l 00 ArdenRidge Office Park
3820 Cleveland Ave. N.
Arden HilIs, MN 55112
651-636-5100
651-636-5100 (fax)
info@tramm.biz
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January 12, 2005
Kim L Tramm, President
TRAMM BUILDERS & REAlTORS, LLC
3820 Cleveland Avenue North
#100 ArdenRidge Office Park
Arden Hills, MN 55112
Mr. Will Neumeister
Director of Community Development
City of Andover .
1685 Crosstown Boulevard Northwest
Adover, Minnesota 55304 .
Memorandum of Understanding relative to Tramm purchase of land parcels ,from the CIty
of Andover In Andover Station North Development
Dear Mr. Neumeister:
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Tramm Builders & Realtors, LLC or an assign of related Tramm entity ('Buyer") proposes to
purchase from The City of Andover ("Seller"J the property located contiguously to the following
proposed streets: Southwest comer of 139 Lane NorthWest and Jay Street Northwest consisting
of approximately three acres of land. SubjeCt parcel is bounded by Outlot B to the west as
indicated on a Preliminary Plat document that was received by the City of Andover of December
10,2004. See attached preliminary plat titled ANDOVER STATION NORTH. Buyer proposes to
purchase said parcel of land from the Seller on the foil .ng terms and conditions:
1. PurchasePrI : $4S9,BB6,{}f} . 471; <10, b4$ed'on ,1J1eliJ f~
2.. Tenns of Payment of Purchase Price: Eamest Money In the amount of $20,000 shall 5.-[:
be tendered to Seller at execution of formal Purchase Agreement by all principals. Said ·
Purchase Agreement shall be drafted by the Seller. Balance of the purchase pr;ce shall ...... e;z..,
be paid by Buyer in cash at time of Buyer securing building permit for the start of .)t 1 /
consfnlction of Buyer's proposed project Office condomlnlumsITown-style Offices. JtU!/tRR:f
3. Closlnq Pate: Buyer shall not be required to commence proposed project or secure any <<-
building permits earner than May 15, 2006, but may commence project earlier at its
option and In the event City infrastructure Improvements are completed prior to this date.
In the event City infrastructure Improvements are not completed by May 15,2006, Buyer
shan agree to commence project within sixty days of completion of such improvements by
City. Actual closing date shall be governed as follOWS: a) City Infrastructure
improvements shall be complete, b) Buyer shall have appr.ed for building permit and City
shall have approved such application, and c) Tramm shall tender balance of purchase
price in cash and City shan convey title to subject property. Buyer shall not commence
with any project construction until the City has been paid In full for the subject property,
4. 11tle Evidence: Seller shall provide evidence of title and shaD convey marketable title to
the Property to Buyer at Closing.
ExclusivItY: Seller shall not offer the Property for sale to others providing Buyer and Seller have
entered into a formal Purchase Agreement on or before . 2005 on which date
this Memorandum of Understanding shall expire and be replaced by a more formal Purchase
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, j Memorandum of Understanding
Purchase of Andover Land Parcel
_, TRAMMlANDOVER
January 12, 2005
Page Two ofTwo
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5. Agreement In the event formal Purchase Agreement has not been executed by Buyer
and Sener on or before said date, all agreements and obligations contemplated by this
Memorandum of Understanding shall terminate.
6, Inclusions: Seller shan provide a list of general project Improvements and
improvements Seller shall make to the subject land parcel within the formal Purthase
Agreement Such improvements witl include the extension of water and sanitary sewer
lines to the site, the Installation of street, curb and gutters, storm sewer, constnJction of
drainage ponding, and the establishment of final grade on the subject parcel. These
Issues shall be fully addressed in the Purchase Agreement In addition to general
delineation of standard area costs to Buyer shaD be addl1:!ssed in the Purchase
Agreement In accordancewith the discussions Buyer has held at the City Offices
regarding the same subject.
7. COntinaencles: This transaction shall be subject to City approving Buyer's re-platting of
subject parcel by the date of closing.
6. ODtian Aareement At closing of this transaction, Buyer shall have the option to
purchase similar parcel of Iancllocated across Jay Street to the southeast Parcells
similar in size to subject parcel. Buyer would have one year from c:Josing date of this
transaction to exercise its option to purchase said second parcel from Seller. Price for
this second parcel shall be the same as subject parcel plus live percent A calculation of
purchase price divided by usable square footage plus fiVe percent shall establish the
purchase pl1ce.
9. Aaencv ReDresentation: There are no Agents or Agencies Involved in this transaction.
Buyer and Seller are not represented in this transaction by any Agent or Agencies and
therefore no commissions shall be due any entity at closing of transaction. Buyer
hereby acknowledges that Kim L Tramm is a f1censed real estate broker in the State of
Minnesota and is also affiliated with the Buyer.
We hereby agree to buy the subject Property from Seller under the Terms and Conditions
contained herein. We look forward to working with the City of Andover and developing a project
of which we can all be proud.
Sincerely yours,
Kim L Tramm, Buyer Date
President
TRAMM BUILDERS & REALTORS, LLC
Countersi(mature: We hereby agree to Sell the Property to Buyers under the Terms and
Conditions contained herein.
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City of Andover
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OPPIDAN
Bui/der oj IDWnS. Creator oj value.
5125 CooNTY ROAD 101 . #100 . MINNETONKA, MN 55345 . PHONE: 952/294,0353 . FAX: 952/294,0151 . WEB: www.oppidan.com
December 10, 2004
RECEIVED
Mr. Will Neumeister
City of Andover
1685 Crosstown Blvd. N.W.
Andover, MN 55304
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DEe 1 3 2004
VIA FACSIMILE (763-755-8923) & U.S. Mail
CITY OF ANDOVER
RE: Andover Land Site - Andover, MN
Dear Will:
This letter shall serve as a revised proposal for purchase of that parcel ofland owned by the City
of Andover consisting of approximately 288,000 square feet (Lots D & E on the attached plan) in
Andover, Minnesota. This proposal should not be construed to be a binding commitment on
either party, but rather an outline of terms to be incorporated into a mutually acceptable Purchase
'1 Agreement. The terms are as follow:
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1. SELLER: City of Andover
2. BUYER: Oppidan, Inc. or an entity controlled by Oppidan, Inc.
3. SIZE: Approximately 288,000 sCJ.uare feet
4. LEGAL DESCRJPTION: To be determined
5. PRICE: Oile Million Five Hundred Twelve Thousand Dollars ($1,512,000.00) or Five
Dollars and Twenty-Five Cents ($5.25) per square foot of land, payable at closing. This
represents a per square foot price of $5.25 and shall be adjusted based upon the actual usable
square footage of the parcel.
6. DUE DILIGENCE: Buyer shall have 120 days from the execution of the Purchase
Agreement and Seller's delivery of the following items: .
. A copy of the survey ofthe property, including topography, to be provided by the City of
Andover
. Current Title Commitment.
. Copies of any building and site development plans and specifications, if available.
. Phase I environmental report for the entire site.
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7. CONDmON PRECENDENT: Seller shall receive approval from the City of Andover,
within 120 days, for a commercial development on the site. .
8. EXTENSIONS: Buyer shall have the right to extend for one period of 45 days by placing an
additional amount of $5,000 in escrow and all escrowed funds shall be non-refundable;
9. CLOSING:. Closing shall take place within 15 business days of the completion of the Due
Diligence period and approval from the City of Andover, which shall include a joint access
agreement for the lot B, C, D & E, for the development At closing, Seller shall convey
marketable fee title free of all leases, mortgages and other encumbrances or restrictions.
10. mrriEs: Property shall be delivered with all utilities available at the perimeter of the
parcels. Also, City shall install the roadway, as depicted on the attached plan.
11. TAXES & ASSESMENTS: All taxes shall be prorated as of the day of closing.uAny Special
Assessments, levied or pending as of the date of closing.
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\. j 12. BROKERAGE: Buyer and Seller represent that neither party is represented and no brokerage
commissions are due.
It is understood that this Letter of Intent does not constitute a reservation or option on the
property and shall not be' binding on Seller or Buyer until a mutually satisfactory Purchase
Agreement has been executed by both parties incorporating the above terms and conditions.
. Please acknowledge your acceptance of this Letter of Intent by returning one copy of this letter to
my attention, executed by an authorized representative of the Seller. .
Thank you for your cooperation. I look forward to working with you on this location.
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Paul . ucci
APPROVED AND ACCEPTED
Cc: Joe Ryan
By:
By:
Print Name
Title:
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Date:
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1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CLANDOVER,MN,US
TO: EDA Board Members
FROM: Jim Dickinson, City Administrator
SUBJECT: Supplemental Agenda Items for February I, 2005 EDA Meeting
DATE: February 1,2005
The Economic Development Authority is requested to review the supplemental material for the
following Agenda Items:
Accept Additional Information under Discussion Items
Item #3. Andover Station North Letters of Inter (Supplemental) - Planning
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\J Accept Additional Item Under Other Business
Item #4a. Accept EDA Member Resignation - Administration
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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 ~
Jim Dickinson, Executive Director
Will Newneister, Director ofComm . Developmentad-...
FROM:
SUBJECT: Andover Station North Letters ofIntent (Supplemental)-- Planning
DATE:
February 1,2005
INTRODUCTION
The additional "Letters of Intent" have been submitted and are attached. The EDA
needs to review them in addition to those that were provided in the EDA packet and provide
staff direction on whether there is interest in preparing purchase agreements on the particular
parcels that the individuals are seeking to acquire.
DISCUSSION
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\...J Provided the EDA agrees to the terms and conditions contained in the "Letters of Intent", the
EDA would need to authorize the City Attorney to prepare purchase agreements with the
individuals or companies that have shown interest in purchasing land in Andover Station
North.
ACTION REOUESTED
Staff requests the EDA to review the newest "Letters ofIntent" and direct the City Attorney to
prepare purchase agreements for those that there is interest in pursuing.
Respectfully submitted,
ad-.
Will Newneister
Attachments
Letter of Intent from Michael Casey
Letter ofIntent from Play Ventures of Minnesota, LLC
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MICHAEL S. CASEY
14168 ORCIDD STREET
ANDOVER MINNESOTA 55304
January 31,2005
Wtll Neumeister
Andover Economic Development Authority
1685 Crosstown Boulevard NW
Andover MN 55304
Re: Andover Station North
Dear Will:
I am pleased to provide this Letter ofIntent for the purchase of property north of Bunker Lake
Boulevard NW near Jay Street in Andover, as depicted on the attached Vicinity Map, in the
Andover Station North area. Upon your review and acceptance of this Letter, I am prepared to
prepare and enter into a purchase agreemel)t with the City of Andover or the Andover Economic
Development Authority (whichever governmental body is appropriate) (referred to herein as
the "EDA"), under the following terms and conditions:
Site Area:
Purchase Price:
approximately 3 I 0 feet x 318 feet
$2.60 per square foot ofIand purchased, inclusive of all
assessments affecting the land but excluding park dedication/green space
fees (subject to a maximum of$0.26 per square foot), sewer access
charges and water access charges,
full execution of this Letter of Intent by me ("Purchaser") and the
EDA no later than February 15, 2005. A definitive purchase
agreement to be approved and signed by the parties no later than
March 15, 2005. The real estate purchase and sale transaction to
be closed no later than May 15, 2005.
Timing:
EDA's
Responsibilities:
1. Subject property shall be zoned for the following uses: office/warehouse; builders
showcase; community commercial.
2,
pennitted,
Owner-occupied and rental uses of improvements on the subject property shall be
3.
The subject property shall have three direct accesses to public streets.
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4.
There shall be no public streets/roadways on the subject property,
5. All utility services and public roads shall be brought to the subject property by the
City of Andover on or before September 30, 2005. Temporary road and vehicle access and utility
services, to the subject property, shall be provided by the EDA before the date on which pennanent
utility services and roads are brought to the subject property.
6, Assessments related to the subject property for street (and related) improvements to
be included in the purchase price for the subject property.
7. For development and improvement of the subject property, subdivision of the
subject property into four, separate parcels, and the use of zero lot lines, shall be pennitted. The
construction of one building, with an aggregate area of approximately 20,000 - 28,000 square feet,
shall be pennitted, such building to have a maximum height of thirty (30) feet
8. The City of Andover shall pennit, on the subject property following development,
car access for employees and retail uses, and truck access for transportation of goods to and from
businesses located on the subject property.
9. The EDA shall provide a certified survey reflecting boundary lines, topographic
indications, subdivisions, easements, restrictions and other matters customarily reflected in survey
U drawings of real property.
10. The EDA shall provide all off-site (outside the subject property boundaries) utilities,
stonn drainage, street lights, and paving necessary to serve the subject property, including payment
of trunk fees or similar charges.
11.
property.
The EDA shall provide pad rough grading, clearing and fill import for the subject
12. The EDA shall provide soils and engineering testing of the subject property in
satisfaction of Purchaser's requirements.
13. The EDA shall provide and pay for a Phase I Environmental Assessment (and such
further environmental investigations as may be necessary) of the subject property, for the benefit of
and with reliance letters addressed to Purchaser and Purchaser's lender(s).
14, The EDA shall convey marketable title to the subject property to Purchaser, and at
the EDA's expense shall deliver a commitment for title insurance to Purchaser and Purchaser's
lender(s).
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15. The EDA shall pay all real estate taxes on the subject property for all years prior to
the date of closing, and shall pay all real estate taxes, for the year of closing, prorated with the
Purchaser on a calendar year basis as of the date of closing.
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16. The EDA shall pay all assessments against the subject property which are (i) due
and payable, (ii) levied but not yet due and payable, and (iii) pending, as of the date of closing.
17. The EDA shall pay all closing costs customarily paid by the seller of real property.
18. The EDA shall take the actions necessary to complete a recorded plat of the subject
property incorporating Purchaser's proposed subdivision of the subject property.
Purchaser's
Responsibilities:
1. The Purchaser shall pay prorated real estate taxes due and payable in the year of
closing, and shall pay real estate taxes for the years following the year of closing.
2. The Purchaser shall pay all closing costs customarily paid by a Purchaser of real
property.
3. The Purchaser will provide a preliminary site plan on or before March 15,2005 for
EDA approval, and the Purchaser will provide a final site plan on or before
May 15, 2005.
Contingencies:
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I, The Purchaser shall be satisfied with the results of all soils and engineering testing of
the subject property in light of the Purchaser's intended development, the enviromnental assessment
of the subject property, matters concerning title to the subject property, platting and zoning of the
subject property, and the timing and location of utility services and public roads serving, benefiting
and accessing the subject property. The Purchaser and the EDA shall be satisfied with the final site
plan for the subject property. . The contingency period shall be open until the date of closing relative
to the Purchaser's purchase ofthe subject property from the EDA
Option:
I, The EDA will grant to the Purchaser a right of first refusal, allowing the Purchaser
to acquire a parcel ofland adjoining the subject property, inunediately to the east of the subject
property. The Purchaser shall have the right of first refusal for a period of one (1) year from and
after the date on which the Purchaser closes on the purchase of the subject property from the EDA
Pursuant to the right offirst refusal, the EDA shall give written notice to the Purchaser of the EDA's
receipt of a bona fide written offer to purchase the option property (providing the terms of the
purchase offer and a copy of the executed, written purchase offer), and the Purchaser shall thereafter
have the right to purchase the option property on the same terms and conditions.
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Thank you for your consideration of this Letter of Intent. Once executed, this Letter of Intent shall
be a non-binding expression of the intention of the parties as to the subject property. Upon the full
execution of this Letter of Intent by the Purchaser and the EDA, the parties will then use their best
efforts to enter into a definitive purchase agreement as to the subject property, including but not
limited to the tenns and conditions set forth herein,
For the purposes of this Letter of Intent and the transaction relating to the subject property, the
Purchaser may fonn a business entity and transfer and assign his interests under this Letter of Intent
to such entity.
S~~/ r~
Michael S. Casey
MSC/rp
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:-J January 13, 2005
Andover Economic Development Authority
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Mr. James Dickinson
City Administrator
City of Andover, Minnesota
1685 Crosstown Boulevard
Andover, MN 55304
Re: Purchase of property (the "Property") within Andover Station North from
The City of Andover, Minnesota (the "Seller").
Ladies and Gentlemen:
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This letter confirms our interest in purchasing from Seller a parcel of land to be created
within Andover Station North, an Andover EDA project, with a total of approximately
four acres raw land, all on the following terms and conditions:
Parcel Description
The parcel is located in the Northeast comer of Andover Station North adjacent to the
proposed ballfield complex and the existing transmission line easement located along
Hanson Boulevard, The site is incumbered by the Great River Energy easement and the
conditions determined by the WDE site to the north.
Purchase Price
Because of the complexity and nature of the proposed site and the adjacent mixed uses, it
is difficult to propose a price certain until such time as a detailed plan for access and
cross-use easements can be completed, However, we anticipate the proposed use would
traditionally occupy approximately Four (4) acres for the building and associated parking.
We therefore propose a price based on $2.5 per square foot over 4 acres, or $435,600,00,
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Buyer assumes seller will provide and fund all remediation necessary to ready the site for
the intended use. This includes, but is not limited to; monitoring wells, soil remediation,
soil replacement, and ventilation systems.
Buyer assumes seller will rough grade the site to the specifications mutually agreed upon
by both parties as part of the overall mass grading project. Building pad to be prepared to
the buyers specifications for in-place fills, and suitable for standard foundation
construction.
Payment of Purchase Price
The Purchase Price, subject to adjustments, shall be payable by wire transfer of
immediately available funds at Closing.
Earnest Monev
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Within two (2) business days following the execution of the Purchase Agreement by both
parties Purchaser will submit, by wire transfer of immediately available funds, an earnest
money deposit $5,000 to the title company of the Purchasers choice to be held as an
initial deposit in an interest-bearing account at the direction of Purchaser, with interest to
be for the benefit of Purchaser pending completion of the transaction or other tennination
of the Purchase Agreement.
Due Diligence
Purchaser will be afforded a Due Diligence Period of 120 days from the date of delivery
to Purchaser of the last of the Documents for Inspection listed on Exhibit A referred to
below to conduct its due diligence investigations and inspections with respect to the
Property (including, without limitation, the economic perfonnance of the Property, soil
and environmental analysis, physical condition of the Property and engineering
inspections, review of the Documents for Inspection, and such other investigations and
inspections as Purchaser in its sole and absolute discretion may require). Purchaser may
tenninate the Purchase Agreement and receive a refund of the Earnest Money (together
with interest accrued thereon) if as of the end of the Due Diligence Period, Purchaser is
not satisfied, in its sole and absolute discretion, with the results of its investigations and
inspections.
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Seller will deliver the Documents for Inspection to Purchaser within three (3) business
days following the execution of the Purchase Agreement Purchaser and its consultants
and representatives will be afforded reasonable access to the Property and to Seller's
books, records and files relating to the ownership, development, maintenance,
management and operation of the Property.
Title
Seller will, at its cost, provide Purchaser with a current title commitment issued by Title
Company (which Title Company shall be chosen by Purchaser), together with legible
copies of all documents referenced therein. Seller will, at its cost, provide Purchaser with
an updated survey of the Property, which survey shall be current as-built, ALTAlACSM
Land Title Survey, prepared and certified by a registered land surveyor licensed in the
state where the Property is located and certified to Purchaser, Purchaser's lender, if
known, and Title Company, which certification shall be that required by the Accuracy
Standards for Land Title Surveys in 1999, using the third of the three alternatives
regarding the accuracy standards in the certification, and including Items 1,2, 3, 4, 6, 7,
8,9, 10, 11, 13, 14, 15 and 16 of Table A thereof.
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The cost of the owner's policy of title insurance to be issued by Purchaser shall be borne
by Seller or Purchaser in accordance with custom and practice in the area in which the
Property is located,
C1osinl!: and Prorations
The closing will take place at 10:00 a.m. at the offices of Title Company on the 120th day
after the satisfaction of the conditions precedent outlined in Exhibit B ofthis document
(or, if such _ th day is not a business day, the next following business day), or at such
other time or place as may be agreed to in writing by the parties.
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Confidentialitv
Each of the parties (and their respective agents and representatives) will keep the
existence and terms of this letter and the Purchase Agreement in strict confidence both
before and after Closing, except in the course of conveying necessary information to third
parties directly involved in the transaction (including without limitation, in the case of
Purchaser, prospective assignees of the Purchase Agreement, prospective partners of
Purchaser and prospective lenders) and except as may be required by law or otherwise
mutually agreed upon in writing by the parties.
Commissions
Seller shall be solely responsible for the payment of all commissions or fees payable to
any real estate agent or broker in connection with this transaction and shall indemnify
Purchaser in connection therewith.
Purchase Al!:reement
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Purchaser will deliver a draft Purchase Agreement to Seller as soon as reasonably
possible following the signing of this letter of intent by both parties, It is intended that
the Purchase Agreement will be settled and executed by both parties as soon as
reasonably possible after delivery of the draft to Seller.
Assil!:nment
Seller understands and agrees that prior to the closing, the persons constituting Purchaser
will assign their interests in the Purchase Agreement to a Minnesota limited liability
company in which the persons constituting Purchaser will each own an interest
Intended Use
The parties acknowledge that the intended use of the property would be the construction
of a 50,000 sq .ft, indoor sports facility and Sports Grill with associated retail spaces. The
facility would host primarily volleyball events with the ability to provide space for other
court activities or batting cages, The on-site Sports Grill, intended primarily to provide a
family dining environment for the facility, and the entire community, would require a
liquor license for on-site consumption of alcoholic beverages,
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[0 Non-Bindinl!: Letter ofIntent
The parties acknowledge that this is a letter of intent only and is not intended to create
and does not create a binding or enforceable agreement between the parties, save and
except for the provisions under the headings Confidentiality and Non-Solicitation, which
are binding on the parties,
Please confirm your agreement with the terms of this letter by signing and returning the
enclosed duplicate copy, We look forward to working with you to complete this
transaction
Yours very truly,
Play Ventures of Minnesota, LLC
a to-be-formed Minnesota Limited Liability Company substantially owned and controlled
by:
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Acknowledged and agreed this _ day of
City of Andover, Minnesota
By:
Printed Name:
Title:
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EXHIBIT A
Documents for Inspection
I, Plans and specifications for the Property and overall development, including site
plan showing location and number of parking spaces, grading plans, utility plans,
environmental remediation plans, and any other documents relative to
development of the subject site,
2. All engineering, inspection, environmental and similar studies and reports relating
to the Property
3. Copies of any existing title policies (with underlying documents) and surveys
4, All warranties and guaranties affecting the Property,
5. Documentation regarding any litigation currently affecting the Property.
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EXHmrr B
Conditions Precedent to Closing
1. The construction and opening of Jay Street including signalized intersections at
both Hanson and Bunker Lake Boulevard.
2, The completion of rough grading and construction of paved parking lots serving
the park and ball fields adjacent to the property in a configuration mutually
acceptable to the buyer and seller of the subject parcel.
3. The completion of all Sanitary Sewer, Domestic Water, and Storm Sewer
infrastructure serving the parcel and extended to the proposed property line,
4, The availability of all private utility services (electric, natural gas, CATV,
telephone, etc. ) immediately adjacent to the property.
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5, Preliminary Plat, Final Plat, and Commercial Site Plan Approval from the City of
Andover.
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CITY OF
NDOVE
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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 & Commissioners
FROM: Jim Dickinson, Executive Director
SUBJECT: Accept Letter of Resignation
DATE: February 1,2005
DISCUSSION
A letter of resignation (attached) was received by fax from Fred Larsen III with an effective date
of February 1,2005. I did follow up by phone to confirm.
~) ACTION REQUESTED
The EDA is requested to accept the letter of resignation from Fred Larst>n III and provide
direction to staff for recruitment of a commissioner.
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'-> February 1, 2005
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To: City of Andover, Economic Development Authority
I, Fred Larsen III. hereby resign my position as voting resident member of the
Andover Economic Development Authority, as of February 1, 2005.
Regards,
-dJ;tY0 uL
~~:en III
NVIaMVns 113S-n-d13H (;009 v9L C9L YVd 09:C1 3ill 900(;/10/(;0