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HomeMy WebLinkAboutEDA April 19, 2005 o 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING April 19, 2005 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order 2. Approval of Minutes - April 5, 2005 3. Update Purchase Agreements-Casey/Tramm 0 4. Update on Letters ofIntent 5. Update Andover Station North Improvements 6. Other Business 7. Adjourn o o o o 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: CC: FROM: SUBJECT: DATE: INTRODUCTION Economic Department Authority ~ Jim Dickinson, Executive Director ~y Vicki V olk, City Clerk Approval of Minutes April 19, 2005 The following minutes were provided by TimeSaver Secretarial Service for approval by the EDA: April 5, 2005 Regular Meeting (Nowak, Schultz absent) . DISCUSSION Attached is a copy of the minutes for your approval. ACTION REOUlRED The EDA is requested to approve the minutes of April 5, 2005. Respectfully submitted, ~. (j/t Vicki V olk City Clerk (jJ o o o DRAFT ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 5, 2005 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, April 5, 2005, 6:00 p.m., at the Andover City Hall 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: President Mike Gamache, Commissioners Don Jacobson, Mike Knight, Ken Orttel, and Julie Trude (arrived 6:24 p.m.) Edward Schultz, and Robert Nowak Executive Director, Jim Dickinson Community Development Director, Will Neumeister Others Absent: Also present: APPROVAL OF MINUTES March 15, 2005: Commissioner Jacobson stated he wasn't sure the design standards were approved as stated on Page 2 of the minutes. Mr. Neumeister said they were approved as part of the Consent Agenda. Commissioner Jacobson noted the process is unclear. Commissioner Jacobson said on the bottom of Page 3, a motion made by Jacobson is not listed as being seconded. Mr. Dickinson said the words "Motion failed for a lack of second" should be added. Commissioner Jacobson stated that the middle of Page 5 regarding the discussion oflights, it is not stated that the Commission agreed with option three. He said the consensus should be indicated. Commissioner Ortell pointed out it does state "President Gamache stated he was fine with option three. The Commission agreed." Commissioner Jacobson noted there should be no changes. MOTION by Knight, Seconded by Jacobson, approval of the Minutes as amended. Motion carried unanimously. UPDATE PURCHASE AGREEMENTS - CASEY /TRAMM Executive Director Dickinson said the proposal was sent to Mr. Tramm and he is waiting for their reply on the purchase agreement. He said they are motivated, however the timing with Easter and other projects have delayed their work on this. Executive Director Dickinson stated that Courtney Bednarz has been working with Mike Casey. He indicated Mr. Casey will be at this meeting to present a site plan. He requested this item be o o o Andover Economic Development Authority Meeting Minutes - April 5, 2005 Page 2 revisited when Mr. Casey arrives. Commissioner Jacobson questioned the status of the project with Pov's. Mr. Neumeister said he will ask whether they will sign. He said the Staffhas gone as far as they can go. Mr. Berkowitz said the construction can start without the agreement. However, it would be nice to complete the negotiation. He said we have to work through Mr. Povlitzi' s attorney to get things done. Mr. Neumeister said if Mr. Povlitzi does not sign, we will work around that. He noted it is to Mr. Povlitzi's advantage to join in. Mr. Dickinson stated part of the direction is to add the small parcel adjacent to the Bruggeman property. President Gamache confirmed the plan is to add a trail on Pov's side. President Gamache said he is concerned about the netting. Mr. Berkowitz noted the netting would be installed. Mr. Dickinson gave an update on the Bruggeman property. He said there has not been a final closing on this, in part due to the back up in the surveyor's office. He noted City Attorney Bill Hawkins had indicated it is a 4-week review time. He said the closing will have to be pushed out another week or so. Commissioner Jacobson questioned why it must be reviewed. Mr. Neumeister explained it must be checked for errors or overlaps or omissions. He added that Bruggeman's attorney is still looking at the DCCRs which were approved at the last meeting. They seemed to be unaware that they would be tied into the wetland and would need to share in the maintenance cost. They are not against it, but want to take their time in reviewing the responsibility that goes with that. Their attorney said it is a minor issue. UPDATE ON LETTERS OF INTENT . Mr. Dickinson stated that no additional work has been done on the Play Ventures proposal since the last meeting. He said a memo is included in the packet and the appraiser's proposal and noted the proposal is better than the previous one. He explained they requested a timeline of 8 to 10 weeks; Mr. Dickinson tried to reduce that, and it is now at 6 to 8 weeks and cost is down from $8,000 to $7,500. Commissioner Orttel inquired whether anytlllng is happening with the south parcel. Mr. Dickinson answered he is meeting with a developer next week. Mr. Dickinson stated Oppidan has not proceeded forward with anytlllng new on their proposal. However, the parcel next to Bunker Lake Boulevard has generated interest from another developer. o Andover Economic Development Authority Meeting Minutes - April 5, 2005 Page 3 Mr. Neumeister illustrated the possible proposal on the white board. He explained they are trying to raise interest in a developer to put in a shopping center facing west. The entrance would be off Bunker Lake Boulevard with a right in/right out. If a strip mall was built parallel to Bunker Lake Boulevard, the back of the parcel would be blocked, which led to the suggestion of the strip mall facing west, or possibly an L-shaped building. Commissioner Knight clarified the business of Oppidan. Mr. Dickinson explained they are a development company with the focus on Cub Foods, Coborns, and Gander Mountain Stores. He added that they develop small strip centers. Mr. Dickinson stated that he would expect that if Oppidan came in, they would only buy the back lot. This possibly puts ownership of the front outlots to the EDA. He added that other development ideas are welcome. President Gamache said he believes we should stay firm on the road plans with right in/right out off Bunker Lake Boulevard. He said the developer should be instructed to work around the entrances as planned. o Commissioner Jacobson commented he would not like to see an abundance of cars in a parking lot along Bunker Lake Boulevard. o Commissioner Knight mentioned that strip malls are risky with tenancy, and a poor use of land. President Gamache said there would have to be one main tenant. Mr. Dickinson agreed and added that the maintenance must be kept up to keep the big tenants. He said we are still hoping for a restaurant on the north side of Lot B. Mr. Neumeister pointed out that going eastbound, if the left turn is missed at Jay Street, it is difficult to get into this development. He stated the outlots would need a main tenant to draw the traffic in. Commissioner Orttel said that this is the situation in many developments today. Mr. Dickinson said that the new proposal would be a 20,000 square foot building, with the developer occupying half of it. Oppidan would want the outlots consolidated into one, which they are now. President Gamache agreed that a big parking lot would not be as attractive along Bunker Lake Boulevard. He said he would like to see the front face west. Mr. Neumeister asked if the lot was on the west side, and there was more green space along the Bunker Lake Boulevard side, if that would be more acceptable. Commissioner Orttel pointed out there may need to be some access to the easterly lot. Mr. Dickinson said he has some information to work from now, with the consensus that the building should be oriented north - south, and a lot should be on the west side. o Andover Economic Development Authority Meeting Minutes - April 5, 2005 Page 4 UPDATE ANDOVER STATION NORTH IMPROVEMENTS Executive Director Dickinson stated there have been issues relating to obtaining the County Engineer's signature, and with State Aid approval. He noted the signature has been obtained, but the bid cannot be awarded because there is no State Aid approval yet. He expected approval within the next half day. He said the situation would be presented to the Council later in the evening at their meeting. This would keep the project on schedule. Commissioner Jacobson questioned if this is for the entire road. Mr. Dickinson answered it is, however the full intersection improvements would not be done yet. He said we had agreed that we would not access Hanson or pursue to access it unless it is deemed necessary. Commissioner Trude mentioned that the amount of mud and debris should be monitored so it doesn't interfere with the existing businesses. Commissioner Orttel thought the construction would be far enough away that it wouldn't interfere. o Mr. Dickinson said they want the interchange to progress on Highway 10 and Hanson Boulevard. However, if it is opened up, there could be more traffic than can be handled. Mr. Berkowitz said the hope is that there would be some action on this prior to 2006. Commissioner Jacobson questioned why the County is not contributing. Mr. Berkowitz explained the County would say there already is proper access. The County is willing to negotiate and make it work, and willing to build a right turn lane. The businesses would be required to build their driveways. Commissioner Trude asked if we could do a 5-year assessment for ABC mini storage. She noted they are supposed to pay half, and she asked if they could do an assessment plan. She also' questioned if there is a concern with the cost of fuel and petroleum. Mr. Berkowitz responded the materials have gone up, and there is concern it could go higher than the engineer's estimate. UPDATE PURCHASE AGREEMENTS - CASEY (continued) o Mike Casey, developer, displayed a preliminary plan. He said one of the problems is that there are three separate businesses. The fIrst space is 6,000 square feet; the center space is 15,000 square feet and the tenant wants 16,000; and the third space is 6,000 square feet. He said he had a conversation with Mr. Bednarz regarding the number of parking stalls who agreed with Edward Farr Architects. He noted a 40 foot clearance is needed to gain access to the back properties. As it sits, the entire 40 feet is on the north side, making his property smaller, and making the requirements of square footage and parking difficult. He is giving up 20 feet for the property on the south, which would provide the appropriate clearance. He explained the other plan is a 40 foot right-of-way on the original survey. However this plan only allows 1.5 businesses rather o o o Andover Economic Development Authority Meeting Minutes - April 5, 2005 Page 5 than 3 in the other plan. If the road goes in, it lessens the square footage. He further explained the original letter of intent stated the size was roughly 300 x 318 feet. Approximately 409 feet is needed in order to make all three businesses fit. He said it would be an almost even split with 316 feet on one side, and 320 feet on the other. If the lot to the east could be shrunk, it would help. Setback is the issue and the amount of parking spaces as Mr. Bednarz advised. City Code states 20 percent of space must be for an office/display room area. Mr. Bednarz is suggesting a minimum of 77 parking stalls, and the first plan gives 100 stalls. Mr. Dickinson advised that enough parking should be created for future use. President Gamache questioned the 100 stalls when only 77 are needed. He asked if some could be omitted. Mr. Casey said they could. Mr. Neumeister suggested using more green space against Jay Street and have the parking on the west side. Mr. Casey said he will find out whether than can be done, as he is working off the setbacks as Mr. Bednarz advised. Mr. Neumeister said the building should not be too close to Jay Street. Discussion took place regarding whether a PUD is more flexible. President Gamache clarified that based on the information from Mr. Bednarz, the number of parking stalls could be as low as 77. Mr. Casey answered in the affirmative. He showed another layout with 65 parking stalls. He said once the building is put together, they will do an exchange from their existing buildings and then go on to Phase II. Mr. Neumeister pointed out that the site on the south side should be kept as long as possible. Ifit is a restaurant, more parking space will be needed, and there would likely be parking in Mr. Casey's lot at night. He added that the north line is not set permanently. He said if20 feet makes a difference, that line could be moved. Commissioner Trude suggested looking at the PUD and more green space. Mr. Neumeister said he would rather work within the ordinance than do a PUD if possible. Mr. Neumeister said the grading would not be impacted, but the location of the sewer and water stubs would be. Mr. Berkowitz added that the grading is all set. Commissioner Trude asked if the horseshoe-shaped drawing was considered. Mr. Dickinson said it was, but it did not work. Commissioner Trude pointed out that the setback in Andover Station was virtually no setback. She questioned whether this type would work. Mr. Neumeister said he would look into it. Mr. Casey noted the building would be nicely landscaped to block some of the loading docks. He said that bermed green space was also considered. o o o Andover Economic Development Authority Meeting Minutes - April 5, 2005 Page 6 Commissioner Trude thanked the Staff for their creativity and flexibility. OTHER BUSINESS None. Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 6:50 p.m. Respectfully submitted, Chris Moksnes, Recording Secretary o o o @ CITY OF NDOVE 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 , ,/ Will Neumeister, Director of Community Development ~ SUBJECT: Update Purchase Agreements--Caseyfrramm -- Planning DATE: April 19, 2005 INTRODUCTION The staff has been in discussions with Mr. Casey and Mr. Tramm regarding their purchase agreements. This report summarizes the status of the discussions. DISCUSSION Mr. Casey is working out details ofthe site and building plans. He has arrived at a plan that will work for him and the two tenants that would occupy the 31,000 square foot building he is planning to build. It appears that the site boundaries need to be slightly adjusted to fit their building (see attached drawing). He needs an additional 20 feet of lot depth (north-south) to enable him to build the style building that he desires (125 feet deep). Staff recommends that the location of the common driveway serving the lots be centered on the south lot line. This is acceptable to Mr. Casey and will enable him to fit the building on the lot. His goal is to close on the land sale for the first phase in the next month and have the building under construction shortly thereafter. Mr. Casey is still interested in building the high quality light industrial building that we have his verbal commitment on. Also the building does require a slightly larger parcel for the first phase and a smaller parcel for the second phase. Staff sees no problem with this change. Mr. Tramm has discussed with staff the purchase agreements on the two parcels and the only changes he wants is to have the closing dates changed. He would like to close in April 2006 on the first parcel, and April 2007 on the second parcel. The ernest money he would be required to pay would be non-refundable ($20,000 on first parcel, $40,000 on the second parcel). Staff recommends that the slight adjustments he is asking for be approved. ACTION REOUESTED Staff requests the EDA to discuss the adjustments that are described above and direct the staff to proceed with the adjustments ifthey are found acceptable. Respectfully submilJe~,/ Will Neumeister ~ Attachments Site Plan from Mike Casey Amended Tramm Purchase Agreements I I: d \: I: I: I: \: I II I I: : l:~': I: : ,: : d : I: I I:~W-: .1 (J- I II C; I .,,- I:/~l L_~____.__ ~' ~ '~l~";~~ i ' t ' :' ," \,~, II ,I . t\"' . ~.~ ~ ~ ~ ~ ~ ~<( lJ.j --..9 ..< ~ - .....<( s:s /Zb.~ Ii I: I, I, Ii I: I! .01 .0' d'., ,~ /-/' \ '" I: : ( l:~~__~_. ..~~.. ;- \ - ------------------------~ i2 .'"h'hO~ $" Q^-.J._'_~.,-',__c-- . ~ :i~ii. :itl,i~!t.!'!:.I.I' ;:.:.:~.:.:._~Jt i ! ! I I I i2 \- . LL . '- ----o-----~ o ~ () '-'S --------- . LL ----~- u) ~ "- o - O~ ----t) - 8-J .~ 0 ;:> ~ ~ ~ l"\ .oOOl ,5-Z --- - --- - - - --- - ----- .~~~:.'~:~.~ : ,.; : :-: u}}IIlJJ ( \ "- . CJ) . ---..-. - --.--- -- om.. o ~ ~ .~ .~ L_~_ -/.3a.')liS .~Z'~GZ Attr. @ [ I I i [1* ~ .Oc .1 e CY I .Oc ~ -l <( l- \\) () 9 .OH t, ,J I I. I;:::: I~ I I I I I I I I I I / ~~ .0<: o o o '11</1 M/11 =IJ / PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on , 2005, by and between, the Andover Economic Development Authority, a body corporate and politic, of 1685 Crosstown Boulevard NW, Andover, Minnesota 55304, Seller, and Tramm Builders & Realtors, LLC, a Minnesota limited liability company, of 3820 Cleveland Avenue North, #100, Arden Ridge Officer Park, Arden Hills, Minnesota, 55112, Buyer. 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: See Exhibit A attached hereto. 3. PURCHASE OF LOT WITH BUILDING OR VACANT LOT. (Check paragraph that pertains.) A. Buyer is purchasing the lot with an existing building. x Buyer is purchasing a vacant lot. B. 4. PRICE AND TERMS. The price for the real and personal property included in this sale: Four Hundred Seventy Nine Thousand Nine Hundred Nine and no/100 Dollars ($479,909.00) which Buyer shall pay as follows: Non-refundable earnest money of Twenty Thousand and no/100 Dollars ($20,000.00) by check, receipt of which is hereby acknowledged, and Four Hundred Fifty Nine Thousand Nine Hundred Nine and no/100 Dollars ($459.909.00) cash on or before April 1 , 2006, DATE OF CLOSING. The purchase price is based on a site estimated to be 131,482 square feet with a price of $3.65 per square foot. After the plat is completed of the property by the EDA as required in paragraph 8 herein and the actual square footage of the site is known, the price shall be adjusted to reflect the change in land area based upon the square foot price set out in this paragraph. 5. CONTINGENCIES. Buyer's obligations under this Purchase Agreement are contingent upon the following: (a) Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied with the environmental and soil conditions of the Property. (b) Buyer shall have obtained all zoning, land use, signage, watershed, environmental and other governmental approvals and permits Buyer shall deem necessary to use the Property in the manner contemplated by Buyer, including, without 1 o o o limitation, a full building permit for a building conforming to Seller's design standards which Buyer determines can be built for a price acceptable to Buyer, in Buyer's sole discretion. (c) Buyer shall have determined that the roads, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes. In the event any of the above contingencies have not been satisfied or waived by Buyer on or before the date of closing, this Agreement shall be voidable at the option of the Buyer. If any of the foregoing contingencies have not been satisfied by the date of closing, Buyer may postpone the date of closing up to 60 days to permit more time for such contingencies to be satisfied. 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the property without effective forfeiture provisions; C. Reservation of any mineral rights by the State of Minnesota; D. Utility and drainage easements which do not interfere with existing improvements. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual DATE OF CLOSING. SELLER SHALL PAY on DATE OF CLOSING all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. SELLER SHALL PAY on DATE OF CLOSING all other special assessments levied as of the date of this Agreement and pending special assessments for Jay Street. SELLER SHALL PAY on DATE OF CLOSING any deferred real estate taxes, special assessments or connection charges payment of which is required as a result of the closing of this sale. SELLER SHALL PAY all street and utility costs for the street lying between Lot 5, Block _ and Lot 1, Block , Andover Station North, if constructed at any time in the future. 2 o BUYER SHALL PAY real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. SELLER'S BOUNDARY LINE AND ACCESS WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the property. Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the property in the past 120 days for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the warranty deed. 9. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 10. POSSESSION. Seller shall deliver possession of the property not later than DATE OF CLOSING. All interest, fuel oil, liquid petroleum gas, and all charges for city water, city sewer, electricity and natural gas shall be prorated between the parties o as of the date of change of possession. 11. EXAMINATION OF TITLE. Seller shall, within a reasonable time after acceptance of this Agreement, furnish an Abstract of Title, or a Registered Property Abstract, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens. Buyer shall be allowed 30 business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 12. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention of make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title o 3 o objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, anyone or more of the following: (1 ) Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; o (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer; (3) Damages from Seller including costs and reasonable attorney's fees, as permitted by law; (4) Specific performance within six months atter such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; o 4 o o o (2) Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: (1) Seek damages from Seller including costs and reasonable attorneys' fees; (2) Seek specific performance within six months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 13. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 14. MINNESOTA lAW. This contract shall be governed by the laws of the State of Minnesota. 15. WEll AND FUEL TANK DISCLOSURE. Seller certifies that the Seller does not know of any fuel tanks or wells on the described real property. 16. INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE. Seller certifies that there is no individual sewage treatment system on or serving the property. 17. PAYMENT OF CLOSING COSTS. Each party will pay closing costs which are normally allocated of Buyers and Sellers in a real estate transaction. The Andover Economic Development Authority agrees to sell the property for the price and terms and conditions set forth above. We agree to purchase the property for the price and terms and conditions set forth above. SELLER: BUYER: ANDOVER ECOMONIC DEVELOPMENT REALTORS, LLC AUTHORITY TRAMM BUILDERS & 5 o o o By: Michael R. Gamache, President By: James Dickinson, Executive Director By: 6 By: Its: Its: o o 7Mm/YJ ~2- PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on , 2005, by and between, the Andover Economic Development Authority, a body corporate and politic, of 1685 Crosstown Boulevard NW, Andover, Minnesota 55304, Seller, and Tramm Builders & Realtors, LLC, a Minnesota limited liability company, of 3820 Cleveland Avenue North, #100, Arden Ridge Officer Park, Arden Hills, Minnesota, 55112, Buyer. 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: See Exhibit A attached hereto. 3. PURCHASE OF LOT WITH BUILDING OR VACANT LOT. (Check paragraph that pertains.) A. Buyer is purchasing the lot with an existing building. x B. Buyer is purchasing a vacant lot. 4. PRICE AND TERMS. The price for the real and personal property included in this sale: Five Hundred Four Thousand Four Hundred Twenty Four and 80/100 Dollars ($504,424.80) which Buyer shall pay as follows: Non-refundable earnest money of Forty Thousand and no/100 Dollars ($40,000.00) by check, receipt of which is hereby acknowledged, and Four Hundred Sixty Four Thousand Four Hundred Four Twenty Four and 80/100 Dollars ($464.424.80) cash on or before April 1,2007, DATE OF CLOSING. The purchase price is based on a site estimated to be 130,680 square feet (3.0 acres) with a price of $3.86 per square foot. After the plat is completed of the property by the EDA as required in paragraph 8 herein and the actual square footage of the site is known, the price shall be adjusted to reflect the change in land area based upon the square foot price set out in this paragraph. 5. CONTINGENCIES. Buyer's obligations under this Purchase Agreement are contingent upon the following: (a) Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied with the environmental and soil conditions of the Property. (b) Buyer shall have obtained all zoning, land use, signage, watershed, o environmental and other governmental approvals and permits Buyer shall deem 1 o o o necessary to use the Property in the manner contemplated by Buyer, including, without limitation, a full building permit for a building conforming to Seller's design standards which Buyer determines can be built for a price acceptable to Buyer, in Buyer's sole discretion. (c) Buyer shall have determined that the roads, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes. In the event any of the above contingencies have not been satisfied or waived by Buyer on or before the date of closing, this Agreement shall be voidable at the option of the Buyer. If any of the foregoing contingencies have not been satisfied by the date of closing, Buyer may postpone the date of closing up to 60 days to permit more time for such contingencies to be satisfied. 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the property without effective forfeiture provisions; C. Reservation of any mineral rights by the State of Minnesota; D. Utility and drainage easements which do not interfere with existing improvements. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual DATE OF CLOSING. SELLER SHALL PAY on DATE OF CLOSING all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. SELLER SHALL PAY on DATE OF CLOSING all other special assessments levied as of the date of this Agreement and pending special assessments for Jay Street. SELLER SHALL PAY on DATE OF CLOSING any deferred real estate taxes, special assessments or connection charges payment of which is required as a result of the closing of this sale. SELLER SHALL PAY all street and utility costs for the street lying between Lot 5, Block 1 and Lot 1, Block 1, Andover Station North, if constructed at any time in the future. 2 o BUYER SHALL pAY real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. SELLER'S BOUNDARY LINE AND ACCESS WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the property. Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the property in the past 120 days for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the warranty deed. 9. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. o 10. POSSESSION. Seller shall deliver possession of the property not later than DATE OF CLOSING. All interest, fuel oil, liquid petroleum gas, and all charges for city water, city sewer, electricity and natural gas shall be prorated between the parties as of the date of change of possession. 11. EXAMINATION OF TITLE. Seller shall, within a reasonable time after acceptance of this Agreement, furnish an Abstract of Title, or a Registered Property Abstract, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens. Buyer shall be allowed 30 business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 12. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention of make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title o 3 o objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, anyone or more of the following: o (1) Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer; (3) Damages from Seller including costs and reasonable attorney's fees, as permitted by law; (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; o 4 o o o (2) Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: (1) Seek damages from Seller including costs and reasonable attorneys' fees; (2) Seek specific performance within six months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 13. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 14. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 15. WELL AND FUEL TANK DISCLOSURE. Seller certifies that the Seller does not know of any fuel tanks or wells on the described real property. 16. INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE. Seller certifies that there is no individual sewage treatment system on or serving the property. 17. PAYMENT OF CLOSING COSTS. Each party will pay closing costs which are normally allocated of Buyers and Sellers in a real estate transaction. The Andover Economic Development Authority agrees to sell the property for the price and terms and conditions set forth above. We agree to purchase the property for the price and terms and conditions set forth above. SELLER: BUYER: ANDOVER ECOMONIC DEVELOPMENT REALTORS, LLC AUTHORITY TRAMM BUILDERS & 5 o o o By: Michael R. Gamache, President By: James Dickinson, Executive Director By: 6 By: Its: Its: o 0J 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 Will Neumeister, Director of Community Development SUBJECT: Update Andover Station North Letters ofIntent -- Planning DATE: April 19, 2005 INTRODUCTION There has been a new "Letter of Intent" received related to a lot located in Andover Station North, located directly north of First Regents Bank (lot 4, Block 3, Andover Station North). The person submitting the letter of intent is Mr. Louis Rudnicki and he explains in his letter that he would like to develop a retail strip center that would be 7,500 square feet in size, with expansion potential. EDA needs to review it and provide staff direction on whether there is interest in preparing purchase agreements on this particular parcel for this use. o DISCUSSION o 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 individuallLLC that has shown interest in purchasing one parcel of land in Andover Station North. ACTION REOUESTED Staff requests the EDA to review the newest "Letter of Intent" and direct the City Attorney to prepare purchase agreements if there is interest in pursuing a land sale for this purpose. Respectfully submitted, Will Neumeister Attachment "Letter of Intent" from Mr. Louis Rudnicki April 13, 2005 o Mr. Will Neumeister City of Andover 1685 Crosstown Blvd. N.W. Andover, MN 55304 RE: Purchase and development of Lot 4, Block 3, Andover Station North. Dear Mr. Neumeister, This letter is a proposal for the purchase of a parcel of land (Lot 4, Block 3, Andover Station North) from the City of Andover and its subsequent development into retail space. This letter is intended to outline terms to be incorporated into a mutually acceptable Purchase Agreement as follows: 1. SELLER: City of Andover 2. BUYER: Boulder Point, LLC 3. LEGAL DESCRIPTION: Lot 4, Block 3, Andover Station North 4. SIZE: Approximately 74,000 ftz o 5. PRICE: Two Hundred Fifty Nine Thousand Dollars ($259,000.00) or Three Dollars and Fifty Cents ($3.50) per square foot of land, payable at closing. This represents a per square foot price of $3.50 ($3.18 per square foot for property plus $0.32 per square foot for park dedication fees) and shall be adjusted based on the actual useable square footage of the land. 6. CLOSING: Closing shall be on or about April 1, 2006 with construction to begin immediately thereafter. At selling, SELLER shall convey marketable fee title free of all leases, mortgages, and other encumbrances and restrictions. 7. 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 of the property, including topography after remediation and mass grading, to be provided by the City of Andover. . Current Title Commitment or updated Abstract. · Copies of any building and site development plans, restrictions, covenants and specifications, if available. . Phase I and Phase II environmental reports for the entire site. · Brown Field Certificate of Completion from the Pollution Control Agency. to review the suitability of the property for BUYERS intended use. If for whatever reason BUYER determines the property is not suitable, the Purchase Agreement is cancelled and any earnest money posted by BUYER shall be returned to BUYER. o 8. MASS GRADING & UTILITIES: Property shall be delivered with mass grading completed and all utilities available at the perimeter of the parcel. 9 . TAXES & ASSESMENTS: All taxes shall be prorated as of the day of closing. The property shall be delivered by SELLER free of any Special Assessments. o 10. BROKERAGE: BUYER and SELLER represent that neither party is represented and no brokerage commissions are due. II. INTENDED USE: The parties acknowledge that the intended use of the property would be the construction of a 7,500 square foot commercial service/retail facility fronting Jay Street. Possible tenants include a dance studio, neighborhood dry cleaner, and a tenant with a possible drive-thru use. This facility would incorporate some of the design elements described in the photographs in Exhibit A. Exhibit B is a scaled version of the conceptual building design. 12. CONDITIONS PRECEDENT TO CLOSING: BUYER shall receive from the City of Andover the following: · Approval for commercial service/retail development for the above referenced intended uses. . Approval for a neighborhood dry cleaning service with on-site processing. · Approval for access to Jay Street either via a right turn in only slip ramp or as a joint access through an agreement with the parcel to the south. . Approval of Preliminary Plat, Final Plat, and Commercial Site Plan. o 13. CONFIDENTIALITY: 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 and except as may be required by law or otherwise mutually agreed upon in writing by the parties. 14. NON-BINDING: Each of the parties acknowledges that this is a Letter of Intent only and shall not be binding until a written Purchase Agreement is executed by both parties. Please acknowledge your acceptance of this Letter of Intent by signing one of the enclosed copies and returning it to my attention. Thank you for your assistance in the process and your consideration for the proposed use. I look forward to working with the City of Andover on this location. Sin"~ ~ Louis nicki " Acknowledged this day of ,20_ City of Andover, Minnesota By: o Printed Name: Title: o EXHIBIT A (Design Elements) Exterior lighting on the front and sides of the building will incorporate a style similar to that shown below: Construction materials will be a combination of rough-faced block, brick, and stucco similar to the materials depicted in the pictures below: o o . . N ...."- . I . '. I ..... .{"---'- , u: . ; }l . ". '.' t I I ." .--.;.' I : . I ) r..... . p I' I =- .... . . \ I ) :i: a ~ o l j f1J ~ ~ ~ ~. ~ 1:> !~ ~ ! I . ill if1 I 1 . illl 14: !W . ~. .~ = . .1' .' . I 1 . . v O %.....".. ....-....(.._-;,.._.,..,.~.,:...."...~- J ~ \:I i! I I I. 1 I j II . q i I ~I , :5 i I I- I I \!Ii 1\1 ~ , ~l~' Ij :5~I I! ~..'~. r .~ II 11 I ! '2g: ~ ! ~ -' ! I~! 191 ilh. 1W) 1~ '/J; 1-' IVlI I ! , ! o 0........ o o o C3 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 Will Neumeister, Director of Community" Development SUBJECT: Update Andover Station North Improvements -- Planning DATE: April 19, 2005 INTRODUCTION A preconstruction meeting will be scheduled in the next two weeks. Contract documents will be signed in the next two weeks. The schedule for Andover Station North Improvements calls for the grading to begin in about two weeks and after that the construction of utilities and streets will begin in early May. DISCUSSION Final sign off on the "Rights-of-Entry" from Brad Povlitzki and First Regents Bank.are still in process and expected in the next two weeks. ACTION REQUESTED This is an informational update, no action by the EDA is necessary. Respectfully SUb~ Will Neumeister