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HomeMy WebLinkAboutEDA February 3, 2004 CITY OF NDOVE o 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CLANDOVER.MN.US TO: Economic Department Authority CC: John Erar, Executive Directorf FROM: Vicki Volk, City Clerk SUBJECT: Approval of Minutes DATE: February 3,2004 INTRODUCTION The following minutes were provided by TimeSaver for approval by the EDA: December 2, 2003 o DISCUSSION Regular Meeting (Schultz absent) Attached is a copy of the minutes for your approval. ACTION REQUIRED The EDA is requested to approve the minutes of November 12, 2003. Respectfully submitted, Vicki V oIk City Clerk o -~ o o o 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 2, 2003 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, December 2, 2003, 6:00 p.m_, at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota.. Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie Trude; Voting resident members Fred Larsen and Robert Nowak Non-voting resident member Edward Schultz Executive Director, John Erar Community Development Director, Will Neumeister . City Finance Director, Jim Dickinson City Engineer, Dave Berkowitz City Attorney, William Hawkins Others Absent: Also present: APPROVAL OF MINUTES November 12,2003: Correct as amended. Commissioner Trude stated on page 3, eighth paragraph down, the sentence should read "She stated Anoka County is on the map because everything else is already sold out." Commissioner Trude explained she wanted the last paragraph on page three stricken. MOTION by Jacobson, Seconded by Orttel, approval of the Minutes as indicated above. Motion carried unanimously. APPROVE LMCIT LIABILITY COVERAGE Finance Director Dickinson explained the League of Minnesota Cities Insurance Trust (LMCIT) requests that participating cities and special authorities annually decide whether or not to waive the statutory tort liability limits established by Minnesota Statutes 466.04. Motion by Jacobson, Seconded by Trude, to not waive the monetary limits on tort liability established by Minnesota Statute 466.04. Motion carried llmmimously. o Andover Economic Development Authority Meeting Minutes - December 2, 2003 Page 2 ANDOVER STATION EDA APPROVAL Community Development Director Neumeister explained this agenda item consists of multiple authorizations and approvals that all relate to the Walgreens and Target Land transactions in Andover Station. The City Attorney will be present to describe the various actions that are requested of the EDA. Commissioner Orttel asked if they will be incurring additional liability with these items. Mr. Erar explained he would have City Attorney Hawkins review the documents. He stated their position remains the same as before. Mr. Erar stated the environmental indemnification remains consistent with how they proceeded with Festival Foods. The same terms and conditions are involved in this. o Mr. Erar explained the City will retain control and ownership of the pond and will retain a seat on the Andover Marketplace Association. The agreement states the Association will pay for everything relating to the maintenance and improvements. Commissioner Trude stated this will not be a typical situation; it will be a unique situation. She does not want to see this happen at Andover Station North because they are providing ponding without payment: Mr. Erar stated all of the grading, pond work, wetland mitigation is being paid for through their negation with United Properties. The EDA does not incur any costs; this is a cost associated with purchasing the property. Commissioner Orttel asked if they were only getting paid for the cost of useable land. Mr. Erar stated this was true. Commissioner Trude stated most cities would collect a fee to take the storm water into a city park so this is a highly unique negotiating situation. City Attorney Hawkins explained the following items to the Commission: a. Authorization to convey Outlots D and E, Andover Marketplace East to the Andover Station Owners Association. City Attorney Hawkins explained Outlot D is going to be the private street that runs through the development. Outlot E is the green space on the comer. Mr. Erar stated United Properties has agreed to fund any improvements to Outlot E up to $25,000 so the EDA can decide what they want to see on that site. Commissioner Jacobson asked if this is in writing. Mr. Erar stated this will be included in the documents. (Commissioner Knight arrived at 6:09 p.m.) o Commissioner Jacobson stated Item L should be discussed and agreed upon before any of the others because if this is not settled, none of this will matter. City Attorney Hawkins explained this has been settled. o Andover Economic Deve lopment Authority Meeting Minutes - December 2, 2003 Page 3 Mr. Erar explained what was discussed and settled up to the time of the meeting. b. Authorization to convey Outlots A and B, Andover Marketplace East to the City of Andover. City Attorney Hawkins explained this is conveyance of all the outlots to the City and this will be the pond areas and the City will be responsible for those areas. They will have an agreement with 116 LLC to make a contribution to the cost of maintenance of the outlots. He stated 42.8 percent will be collected from the 116 LLC contributions. Commissioner Jacobson asked if this needed to be conveyed from the EDA to the City. City Attorney Hawkins stated that was correct. c. Approval of the Amended apd Restated DCCR's. o City Attorney Hawkins explained there is a substantial change to this. There has been a lot of discussion regarding voting rights, cross easements for access, parking and things of that nature. He was concerned they would still have control over the design of the facility. He explained the documents state there cannot be any changes unless the plans are reviewed by the City and they must comply with the Andover Station Design Standards. City Attorney Hawkins explained if they do not maintain the grounds, the City does have the ability to do the work and assess the cost back to them. City Attorney Hawkins stated there was concern from Commissioner Trude regarding being able to dissolve the Agreements and the members have rather sever restrictions that they have been. negotiating with cross easements and this is never going to be dissolved. Commissioner Jacobson asked if they approve this and a new business comes in, do they need to follow the design guidelines. City Attorney Hawkins stated they did. d. Approval of the Amended Articles of Incorporation and Bylaws of the Association. City Attorney Hawkins explained they will be a voting member of the board but they cannot vote on anything that would affect the assessments against the property owner. e. Resignation of the Existing Board Members from the Association. o City Attorney Hawkins stated this will be reconstituted and they need to get everyone to resign from the Association. Commissioner Jacobson stated if they all resign, how will they get a new representative in. City Attorney Hawkins explained they will also be appointing a representative in the motion. o Andover Economic Development Authority Meeting Minutes - December 2, 2003 Page 4 f. Approval of the Estoppel Letter for Walgreens (Net Lease Development LLC). City Attorney Hawkins stated this is a standard document the buyers want for a warranty. Commissioner Trude stated there are a couple of references to the fact that the MPCA would not allow a certain record (certificate of completion) to be filed and there is a way they are going to get around it. She wondered if this is an issue. City Attorney Hawkins stated the County is very difficult to deal with but this will get recorded. g. Approval ofthe Environmental Indemnity for Walgreens (Net Lease Development LLC). City Attorney Hawkins explained Items G and H are the same. These are the environmental indemnities and they are for one year. h. Approval of the Environmental Indemnity for United Properties Investment LLC for Outlot C. o 1. Approval of the Environmental Undertaking Agreement for Andover Station Owners Association for Outlots D and E. J. Approval of a Wetland Mitigation Easement on EDA Property Located North of Bunker Lake Boulevard. City Attorney Hawkins stated one of the original proposals was going to be a wetland mitigation easement. Walgreens feels comfortable that in the Estoppel letter the City has indicated they have complied with everything and will make sure this is done so this item has been stricken. Commissioner Trude asked if the property Walgreens is buying is a hole with water and this will be filled in for a building pad and they will build on this. Mr. Erar stated this is a performance issue between United Properties and Walgreens. City Attorney Hawkins stated there will also be an agreement contract with United Properties to make sure this gets done. City Engineer Berkowitz stated this will require an escrow before it can be worked on. k. Appointing the New Board Member (City Representative) to the Association. 1. Discuss Requested Signs for Target and Walgreens to be Located on Outlot A. o City Attorney Hawkins explained this is an item that is being worked on. Mr. Erar stated they have worked with all the parties regarding the sign locations and they have agreed regarding the size and relative position of each of these. Mr. Erar stated the issue is allowing a modification of the design guidelines, which are not recorded against the property. The signs are well within the requirements of the City's zoning. As a retail center, they do need a sign that is visible and they are less than what has already been permitted out there. o Andover Economic Deve lopment Authority Meeting Minutes - December 2, 2003 Page 5 Mr. Erar explained that United Properties is looking at selling the piece on the northwest comer. They will be looking at a new bank: and they will want a monument He showed on the site plan where the monument signs will be placed on the property. Community Development Director Neumeister showed a color rendering of the Target sign which showed the size and placement Mr. Erar explained the Target sign is within what has already been allowed for the cinema. Mr. Erar stated the reason why the Target and Walgreen's signs are coming in at 12 arid 20 feet is because they are trying to accommodate the Andover Station logo at the bottom. He explained both signs will be in brick and very attractive. Mr. Nowak asked ifboth signs will be lighted. Mr. Neumeister stated they will be lit internally. Commissioner Jacobson asked if this was a standard sign for Target because some Target signs in other cities are smaller. Mr. Neumeister stated Target will have two signs on the property. o Commissioner Trude asked if everyone will have their own sign. She thought they needed to have an overall plan for the signs in order to be fair to everyone located on the property including the businesses already there. Commissioner Jacobson asked if these signs were proposed to be on City easements. City Attorney Hawkins stated they would be located on Outlot A. Mr. Erar stated the Association will be maintaining the property as well as Outlot A. Commissioner Jacobson asked why they are giving eighteen months for repair or replacement of a monument sign. Mr. Erar explained this would give them time given weather conditions to repair the sign and he believed it would be repaired before then because they will want a working sign for their business. City Attorney Hawkins stated all this has changed and he has not had time to review this. Commissioner Jacobson stated on item 19, the covenant will remain in force for 75 years. This seems like a long time and he wondered why it was for such a long time. City Attorney Hawkins stated he thought this had something to do with the life of the building. Commissioner Jacobson asked if Walgreen's went out of business and another company bought the property, what would happen. City Attorney Hawkins stated they will still have a sign for the new business. o Commissioner Knight asked what happens if twenty years down the road, Target leaves, what would they do with an empty business. President Gamache stated they would probably redevelop it Mr. Erar stated if this would happen. the City would make sure this would be maintained and continue to provide the value the community wants. o Andover Economic Deve lopment Authority Meeting Minutes - December 2, 2003 Page 6 Commissioner Jacobson asked if the easement is only for the Walgreen's site. City Attorney Hawkins stated this was true. Mr. Neumeister stated they have received an emaillate in the afternoon that the City Attorney has not had time to review which has a number of changes showing the allowances that need to be made to make sure both of them can be placed on the corner. Mr. Neumeister stated they want to make sure it meets clearview triangle setbacks at the corner for both the City and County transportation. He stated this is all done and the emails and verbal commitments are showing there is agreement there. Mr. Erar stated both Target and Walgreen's needs a confirmation by the EDA stating that a 20 by 12 sign for Target and a 12 by 12 sign for Walgreen's will be permitted. City Attorney Hawkins stated this is set to close on December 16, 2003 and there are still negotiations on some of the terms of the amended and restated declaration of covenants that pertain to control issues between Target and Walgreens. There will be some changes to the sign easement and some other documents. m_ Authorizing the Chairman and Executive Director to Sign the Documents with Amendments Approved by the Attorney. o City Attorney Hawkins stated they are asking authorization for the Chairman and Executive Director to sign any documents that have been approved by him. He stated there is nothing of substance that affects the EDA that he is aware of. Mr. Erar stated there are a lot of documents that Target and Walgreen's are working through but this does not affect the EDA in terms of the standards or guidelines that are out there with the exception of the signage. Commissioner Trude stated they did put a heavy burrden on the first properties that came into the site and she wanted to make sure everything is equal. Mr. Erar stated they are being very careful to make sure everything is consistent. Commissioner Jacobson asked if under the current City sign ordinance, do these proposals including the signage on the buildings, meet all of the current sign standards. Mr. Neumeister stated on the Walgreen's drawing, the east and south walls would be above their sign requirements. The City would need to give approval of the east and south wall signage otherwise they would be above the standards. He stated Walgreens is aware they are over the standards. Target is below what is allowed by the Ordinance. o Mr. Erar stated the Target Store represents higher standards than what is seen in other cities. Commissioner Jacobson does not mind the Walgreen's building but all the other buildings have banding around the building and Walgreen's does not. He would like to have them matching. n. Approval of the Sign Easement for Walgreens Over Part of Outlot A. o. Approval of Architectural Elevation Drawings for Walgreens Store. o o o Andover Economic Development Authority Meeting Minutes - December 2, 2003 Page 7 p. Approval of Architectural Elevation Drawings for Target Store. Commissioner Trude stated she thought 1hat what ever applied to the standards, should apply to everyone. :Mr. Erar stated ifKnowlans or Festival would have come forward and asked for bigger signs on their buildings, they would have probably tried to work with them on that issue. Commissioner Trude stated they need fairness. Motion by Orttel, Seconded by Knight, approval of items A through P with the conditions under 0 that they are approving architectural elevation drawings of Walgreen's store but they are not approving the signs on the building and approval of the free standing signs for Target (2) allowing a 20 foot high and for Walgreen's up to what is allowed by sign code and eliminate Item J and appoint Commissioner Trude to the Board and the Executive Director as an alternate and a multi-tenant sign on the comer and the exact size, location and design to be determined later. Motion carried unanimously. :Mr. Keith Ulstad of United Properties also wanted to make sure the Board was approving a multi-tenant sign allowed at the comer. Commissioner Jacobson stated he would like to see it first. :Mr. Ulstad stated he wants a sign there. :Mr. Erar stated there is nothing preventing this in the guidelines. OTHER BUSINESS There was none. Motion by Trude, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 6:55 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary o o o 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 Members CC: John Erar, Executive Directot- 1 Will Neumeister, Community Development Director~ FROM: SUBJECT: Review/Approve Andover Station North RFP DATE: February 3, 2004 INTRODUCTION Attached is a draft of the Request For Proposal (RFP) announcement that the staff has revised from the one prepared last falL Last fall discussion at the EDA meeting touched on the need to discuss their vision for this area of the City. This is the first opportunity since that time to do that. DISCUSSION The minutes of the EDA meeting where this was last discussed are attached. The EDA directed staff to prepare a revised RFP and mailing list and allow the EDA to review both before sending them out to interested developers. The mailing list is also attached. ACTION REQUESTED The EDA is asked to: L) Review the recently revised RFP document for Andover Station North; 2.) Review the mailing list of developers that the RFP would be sent to; 3.) Determine if the RFP conveys the vision that the EDA has for Andover Station North and provide staff direction on any changes that are desired. ResP~ubmitted, Will Neumeister Attachments Revised RFP for Andover Station North Mailing List for Revised RFP Minutes of Nov. 12,2003 EDA meeting o o o Request For Proposals To Develop "Andover Station North" (Draft - February 3, 2004) BACKGROUND INFORMATION The Andover Economic Development Authority of Andover, Minnesota (pop. 30,000) seeks an experienced developer or team of developers to undertake full or partial development of a master planned development known as "Andover Station North", located north of Bunker Lake Boulevard, just west of Hanson Boulevard. "Andover Station North" is a continuation of the area to the south of Bunker Lake Boulevard that contains the City's primary retail and entertainment center and office park. . The City is currently finalizing the develapment plans for this area and is ready to embark upon this next large development site that the City of Andaver Economic Development Authority owns. The City of Andover has the highest median household income in Anoka County. Located within two miles of the site are several thousand housing units with more being added at the rate of approximately two hundred per year. The entire development area of "Andover Station North" consists of approximately 90 acres, with the net usable area (exclusive of roadways, park, ponds, wetlands, and power line easement) being approximately 44 acres. The zoning of the site is currently General Business (GB) and a portion will be set aside for medium density residential development and will need to be "contract rezoned". The GB zone provides for a wide variety of businesses including retail trade and services, office and light manufacturing and similar uses. The City expects high quality urban architecture and use of durable building materials. Maintaining architectural integrity throughout the development is a priority all of which is covered in the Design Guidelines for Andover Station that will be covenanted on the property. In this master planned development area, it is the City's overall goal to have a developer provide for: .:. Housing Development .:. Employment Opportunities .:. Commercial Development .:. Recreational Opportunities .:. Park and Ride Facilities -z..~ o o o The goal of this master planned develapment area is long term in nature and seeks a variety of living wage employment opportunities in the area. It is envisioned that the successful development proposal will include: .:. A complimentary mix of land uses that offer a variety of places to go and things to do within a compact area; .:. A housing component that may include a variety of housing styles including: single family, multi-family, senior independent and/or assisted living; .:. Buildings and public infrastructure that are designed to maximize energy efficiency, encourage walking, biking, and use of transit; .:. Shared parking behind buildings, in structures, or underground; .:. A street system that is designed far access to a residential area and also capable of handling the needs of a commercial/industrial area with ample sidewalk and trails that will encourage pedestrian circulation; .:. Preservation and creation of natural features to ensure environmental protection and simultaneous accessibility for public use and enjoyment; and .:. Edge treatments which are respectful of adjacent residential neighborhoods. STATEMENT OF PURPOSE The Andover Ecanomic Development Authority and Community Development Department are inviting develapment proposals for this master planned development opportunity. Develapers are asked to demonstrate in their proposals: I. Market support for various land use types and development densities. 2. Appropriate land uses within the study area, including but not limited to residential (for a variety of markets and price points), retail commercial, office, light industrial, and park/open space. 3. Strategies (action steps and schedules) to develop the master planned area. 4. Land use arrangements and urban design and architectural guidelines that will be implemented in the area to encourage: .:. Transit-oriented lifestyles for future residents and use of cammuter rail services and other future transit services. .:. A high level of pedestrian circulatian and use of alternative transportation modes for future residents, business patrons, and employees. -3- .:. Development of high quality buildings, and overall design character for the areas future development focusing on use, frontage, and streetscapes. o .:. Development in a manner by which a positive community identity may be established that takes full advantage of the area's access, visibility. 5. Provide an implementation plan that identifies: .:+ Specific development projects within the study area, project phasing. +:+ Potential partnerships (i.e. public/private), and sources offunding. DEVELOPMENT AREA A map of Andover Station North is presented as an attachment to this document. Electronic files of the site specific information that has been campleted to date are available upon request. EA W APPROVALS AND TRAFFIC STUDY The Andover Statian North development area has already completed the Environmental Assessment Worksheet (EA W) process and a negative declaration on the need for an Environmental Impact Study has been made. A detailed traffic study has already been completed and bath documents area available ta the prospective developers to use as needed in preparing the request for proposal (and will be made available on a request basis). DEVELOPMENT ISSUES o At a minimum, the following development issues will be required to be addressed in the developer's proposal: .:+ Market analysis -- Determine market support for future uses (type and density). Market analyses for potential future commercial uses should include competitive centers evaluation, a trade area analysis, and a competitive position evaluation. The market analyses should address the potential to develop light industrial facilities as well. +:+ Thoroughfare Upgrades - Anoka County has indicated that the development must provide for the upgrades to both Bunker Lake Boulevard and Hanson Boulevard that relate to traffic generated from the proposed development. The development proposal that is put forth should indicate the developer's willingness to undertake these costs and/or be willing to work with the City to complete these improvements as a part of the costs of developing the site. .:+ Park and Ride Facilities - Developer should indicate whether there is a willingness to work with the City to establish a Park and Ride facility on the site (i.e. under the powerlines). o --1- o o o SUBMISSION REQUIREMENTS Each submission of a development proposal should be presented in an 8 12" x II" vertical, bound format. The submissions shall be limited to twenty (20) pages or less. Fourteen (14) copies ofthe proposal shall be submitted at the time indicated in the following proposal schedule section. Submit one master copy and thirteen photocopies (black and white) of the complete package. Submittals will become the property of the Andover Economic Development Authority and will not be returned. All submissions must be received by the City of Andover by Tuesday, April 7, 2004 at 4:00 p.m. Submissions that have been postmarked by that time will be accepted, however any submittals not meeting these deadlines will be rejected. Submissions shall be addressed to Will Neumeister, Community Development Director, City of Andover, 1685 Crosstown Boulevard, Andover, MN 55304. All phane calls regarding submission requirements shall be directed to Will Neumeister at 763-767-5140. All questions regarding the content of proposals and clarification of substantive issues must be submitted in writing to Will Neumeister by March 24, 2004. Written responses to inquiries will be mailed on Monday, March 29, 2004. SPECIFIC RFP SUBMITTAL REQUIREMENTS: Each RFP submission must be arranged according to the fallowing outline: 1. Title Sheet The title sheet must provide the name(s) ofthe developer submitting a development proposal with the name ofthe prime contact clearly identified. 2. Cover Letter The cover letter.must indicate the composition of the entire development team including the Principal in Charge, Project Manger and support team. 3. Table of Contents 4, Background Information on Developer's Team Summarize for each member of the developer's team their background and focus. List and describe the principals, their length of association and general background. Provide a list of current active projects including the name, type of project, location, firm's role in the project and status of the project. 5. Relevant Experience of the Developer's Team List three ta five (3 to 5) examples of mixed-use development projects comparable in scale, program, process, component parts and function to this master planned development project. For all projects listed as relevant experience, include the following: -!;- o o o . Location . Date of project involvement . Project description including illustrative materials and a written descriptian of why this example is relevant to this development project . Cost and scope of the project 6. Development Team Compositian For each firm included in the team provide names, titles and qualifications of individuals who will be assigned to the project. This section ofthe proposal should include descriptions of the respective roles that will be played by team members. Discuss the experiences ofteam members on the example projects referred to above. A resume (no more than one-page in length) should be included for key team members in an addendum to the proposal. 7. Developer's References List a minimum of three (3) references. List references for the example projects. For each reference list the contact's name, address, phone number and relationship to the developer. 8. Statement of philosophy and project understanding Provide a concise statement (one page) outlining the philosophy of the team in approaching projects of this nature. 9. Overall project schedule Provide a propased timeline for completing various phases of the master planned development project. 10. Proposed Purchase Price Present a proposed purchase price for the entire development proposal and the timing of how the land would be taken down. Submission Schedule: 1. Release of the Request for Proposals February 10,2004. 2. Deadline for the submission of written questions regarding the RFP March 24,2004. 3. Deadline for submission ofRFP's April 7, 2004. 4. Dates for interviews (if needed) Week of April 12, 2004. 5. Evaluation ofRFP submittals by EDA on April 20, 2004. 6. Enter into Development Agreement to Develop or Purchase of Property (month of May 2004). -'6- o o o Proposal Review, Evaluation Process and Final Developer Agreement Proposals submitted for this master planned development project will be reviewed and evaluated as follows: 1. A Developer Selection Committee comprised of city staff will review all development proposals submitted to ensure compliance with all RFP requirements. Those proposals that fail to meet specific requirements outlined above will be rejected. 2. Remaining proposals will be reviewed and evaluated for content and four developers will be brought forward to the Andover Economic Development Authority (EDA) for review and consideration. 3. The Andaver EDA may also decide to conduct interviews with the developers that have been recommended for further discussions. 4. If interviews are conducted by the EDA, each developer will be given up to 20 minutes to present their proposal. The presentation will be followed by up to 35- minutes of questions for the developer's team. The questions will be comprised of bath standard and proposal-specific questions. 5. Each team will finally be given up to 5 minutes to make summary statements. 6. The EDA will make the final decision on which development proposal to move forward to final negotiations with. 7. A master development agreement will be drafted and final deal points with the developers will be included in the formal developers agreement and signed by both the Developer and the President of the EDA. The City of Andover reserves the right to reject any or all submittals and withdraw, modify or reissue this RFP at any time. -7- Tom Schuett Schuett Real Estate Group 16220 44th Ave. No. Qnouth, MN 55446 m/tmJ!ti~l{E?lY/tV'6hfbjT::;~$;1v;;;JYib;i1. .M~..... Northwest Commercial Tony Howard 2119 156th Ave. NW Andover, MN 55304 Tony Emmerich Construction 1875 Station Parkway NW Andover, MN 55304 Jim Gray Duke Realty Corp. 1600 Utica Ave. So., Suite 250 St. Louis Park, MN 55416 Tim Murnane Vice President of Development Opus Group 10350 Bren Road West Minnetonka, MN 55343 James Ryan Ryan Companies, Inc. 50 So. 10th St., Suite 300 Minneapolis, MN 55403 Scott Tailkenoff Hillcrest Development 2424 Kennedy St. NE Minneapolis, MN 55413 Dennis Doyle Welsh Companies 7807 Creekridge Circle Bloomington, MN 55439 Jay Scott North American Properties 300 Prairie Center Dr.; Suite 225 Eden Prairie, MN 55344 Joseph Ryan Oppidan Investment Co. 5125 County Road 101, Suite 100 Minnetonka, MN 55345 Bob Fields LandCor Inc. 9464 Hemlock Lane No. Maple Grove, MN 55369 Matt Van Slooten Carlson Real Estate Co. 301 Carlson Parkway, Suite 100 Minnetonka, MN 55305 Boyd Stofer United Properties 3500 West 80tl1 St., Suite 200 Bloomington, MN 55431 Q, Holmes CSM Corp. 2575 University Ave. West St. Paul, MN 55114 Greg Miller Interstate Partners 860 Blue Gentian Road, Suite 175 Eagan, MN 55121 Kevin Bramer The Avalon Group 5500 Wayzata Blvd., Suite 1045 Plymouth, MN 55416 Stephen Wellington Wellington Management Inc. 1625 Energy Park Drive, Suite 100 St. Paul, MN 55108 Gary Dreher TOLD Development Co. 6385 Old Shady Oak Rd., Suite 120 Eden Prairie, MN 55344 Patrick Gaughan Gaughan Properties 56 East Broadway, Suite 200 Forest Lake, MN 55025 Barbara VanAuken Executive Vice President The Avalon Group 5500 Wayzata Blvd., Suite 1045 Minneapolis, MN 55416 Joseph M. Doll Sales Associate Pfeffer Company, Inc. 7200 Hemlock Lane, Suite 101 Maple Grave, MN 55369 Dick Schrier 95 South Owasso St. Paul, MN 55117-7830 Sierra Corporation Attn: John 9120 Isanti St. Blaine, MN 55449 Advance Resources for Devel. Inc. Attn: Mike Mulrooney P.O. Box 48269 Minneapolis, MN 55448-0269 Asset Realty Advisors, Inc. Attn: Joseph M. Nemo 401 Second Ave. South, Ste. 550 Minneapolis, MN 55401 Kelly J. Doran The Robert Muir Company 2850 Metro Drive, Suite 503 Bloomington, MN 55425 General Growth Properties, Inc. 400 Highway 169 So., Suite 800 Minneapolis, MN 55426-1116 Haydobbs Architects 1"'\: Tom 'MFoshay Towers 821 Marquette Ave. So. Minneapolis, MN 55402 Mark Hedin 3482 165th Lane NW Andover, MN 55304 Jay Feider Construction 70 . 3113 Lynn Avenue So. Minneapolis, MN 55416 -8- o )~Z---75Ee/JIC(/i7 k/-~~dldb~-lW~~'- Dave Sebold Insignia Development LLC 800 West 78th St., Suite 133 Chanhassen, MN 55317 Terry Matula D.R. Horton Custom Homes 20860 Kenbridge Caurt, Suite 100 Lakeville, MN 55044 Michael Munson Benson Orth Construction 14001 Ridgedale Drive, Suite 320 Minnetonka, MN 55305 Peter Warthington 1107 Hazeltine Blvd., Suite 200 Chaska, MN 55318 Bruce Neddegard Neddegard Canstruction 1814 Northdale Blvd. Coon Rapids, MN 55448 David Reimer Tawn Center LLC 13750 Reimer Drive Maple Grove, MN 55311 John Darkenwald Darkenwald Construction 7535 River Road NE Elk River, MN 55330 Charlie Nestor Master Development Services 2104 4th Avenue Sauth Minneapolis, MN 55404 Dick Welk Osseo Meat Market 344 County Road 81 Osseo, MN 55369 Darren Lazan Landform Engineering Company 510 First Ave. No., Suite 650 Minneapolis, MN 55403 Qin G. Maas Director of Sales & Marketing Amcon 200 West Highway 13 Burnsville, MN 55337 Michael Casey Northstar Glass 4135 Coon Rapids Blvd. Coon Rapids, MN 55433 Bruce Knowlan 1837 86th Lane NE Blaine, MN 55449 Chris Sanders Re/Max 2605 Campus Drive Plymouth, MN 55441 Elizabeth Kautz Executive Vice President Hartford Group, Inc. 12100 Singletree Lane, Suite 100 Eden Prairie, MN 55344-7933 o -?- o o o ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING NOVEMBER 12, 2003 - MINUTES A'Special Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, November 12, 2003, 6:33 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: President Mike Gamache; Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie Trude; Non-voting resident member Fred Larsen Voting resident member Robert Nowak:; Non-voting resident member Edward Schultz Community Development Director, Will Neumeister Dean Hanson of Hanson Builders Absent: Also present: APPROVAL OF MINUTES October 21, 2003: Correct as written. MOTION by Orttel, Seconded by Jacobson, approval of the Minutes as written. Motion carried unanimously. .. DISCUSS ANDOVER STATION NORTH RFP SUBMITTALS Community Development Director Will Neumeister explained the Hartford Group will not be present tonight as their main presenter is ill. They would like to reschedule for another Wednesday night. He has brought copies of the original RFP so the EDA can discuss the original proposal. Hartford has indicated that they would like some housing included in the plan on the second story above the retail spaces. It would be beneficial to discuss this among the group so they can give their general opinion of the master plan before their next meeting with the Hartford Group; there may be some opinions they need to get out on the table. Dean Hanson of Hanson Builders explained last week he received more information about elevations and actual dimensions on the site. He has learned the type of unit they had proposed will not work because of the water table and ground elevations; they will not be able to do full basements. He stated one of the things that has struck bUn regarding the Jay Street construction is that part of the infrastructure should be attributed to part of this property. In addition, some ponding will be shared by the housing. Everything starts to integrate to a point where it would become difficult to have two different entities and coordinate it all. It seems there needs to be a master plan with one company in charge of the commercial and residential, the sharing of the dirt, the building of the road, and the distribution of the price. Also, by assigning some of the -ttJ- o Andover Economic Development Authority Meeting Minutes - November 12, 2003 Page 2 cost of the Jay Street construction to the residential area, there would be too much cost attributed per unit if the density is too low. The price of the units would go up too much and they would be unable to sell them due to the type of product. He would tlllnk a cost of $160,000 to $200,000 would be a very saleable price. The products would be slab on grade, and densities would be at least eight to ten units per acre to justifY the costs involved and keep the costs of the units down. Mr. Hanson stated another thing that struck him as he looked at Andover as a whole, is that if there were ever going to be an area with higher density, this would seem to be a good spot. It is close to what will be some of the highest concentration of Andover retail and resources. It would make sense it should have a higher density than 3.5 to 3.7 units per acre. As he analyzes everything from a business and practical standpoint it seems that is the logical thing to incorporate into a master plan. Ultimately portions of anyone's master plan should be able to be challenged by a group such as the EDA. He explained the product he presented really does not work with the hard data, and he does not have a product he can put out there. He noted Hans Hagen has nice buildings that are this type of product. Commissioner Jacobson indicated the housing component may not be the best thing to put in if it can only be slab on grade. o Commissioner Knight stated he would like to see the plan that had previously been drawn up for this area. Commissioner Trude commented the land would be difficult to sell located next to Pov's and would require his participation. Mr. Neumeister explained there is a certain kind of market for townhouses in a range from $160,000 to $250,000, depending on where they are located in Andover. To fit this site they would have to be in the low end and in the density of six to ten units per acre. He indicated when the [mal arrangements were settled with Bruggeman Homes about one week ago, they asked if they could come in on the North RFP project; however, they have not submitted any proposals. Commissioner Orttel noted Hans Hagen had also asked to be considered for this site. He indicated the original plan included eight to ten units per acre. Commissioner Trude commented there is a new Met Council. If the City wanted to rezone this to commercial to avoid losing fiscal disparities in the future the Met Council would have to consider that. o Mr. Neumeister explained the Met Council had indicated the City would need medium and high density through this area. He had responded that even without this site the City is meeting their goal. Commissioner Trude suggested TIP funding be used for some of the street costs. -11- o o o Andover Economic Development Authority Meeting Minutes - November 12, 2003 Page 3 Mr. Neumeister explained Hartford had discussed the price of the land bearing all the assessments for the road, and had indicated at some point it does not work unless they could include the housing above the retail. He thinks they might back off of some of the housing above the retail if some of the costs could be written down. Commissioner Jacobson stated the conditions have changed greatly due to Hanson Builders pulling out and the high water levels. He suggested RFP's be sent out again. Mr. Neumeister explained there are two to three acres that could be developed along Jay Street. The road and all the infrastructures cost approximately 2.2 million dollars with improvements, and there are 43 to 44 acres of usable space, including housing. Commissioner Orttel stated any privately done project would be done the same, and the City is being told it is not feasible to put in the utilities and buy the land. He has been arguing about the appraisals that come back the same whether or not there are improvements. Mr. Neumeister advised this information must come into play with final negotiations. The Hartford Group is having a problem with how much they are paying for the land and all the improvements. If the project can be worked out to be better for the City and for Hartford it may not be necessary to put in houses. Commissioner Knight suggested the entire project be reopened and Bruggeman and Hans Hagen be invited back. Commissioner Orttel stated they had indicated they would not accept anything with housing over a certain density on the south side. What they want should be included in their specifications. Commissioner Jacobson stated he does not care for the housing over the retail. He has concerns with the proposal and some of the rental. He stated they owe it to the Hartford Group to say what they like and do not like in their plan. Commissioner Trude commented she has heard that the Hartford Group's expertise is the livable community downtown center. If the housing is excluded, their experience in retail is not as strong. She stated Anoka is on the map because everything else is already sold out. There are discussions that Highway 65 may become an expressway, and this site would be three miles from that. Commissioner Jacobson stated if they are going to start from scratch they should be prepared to state if they are going to participate in the cost of the road. Commissioner Trude stated the City's water hook-up fees are so high Target is balking. Mr. Neumeister explained when developers come in it can be explained the City takes that into account; they can do cost sharing with TIT and other sources. It can all be negotiated with the land. --12'-- o o o Andover Economic Development Authority Meeting Minutes - November 12, 2003 Page 4 MOTION by Knight, Seconded by Trude, to reject all present proposals and reopen RFP's for all options, partial or all, for Andover Station North. Motion carried unanimously. Commissioner Jacobson directed staff to come to the EDA with the revised RFP prior to sending it out, and to supply the EDA with a list of who it will be sent to. Commissioner Trude indicated she has talked to people that do his type of work and has been informed part of this is the timing, and it is now a bettertime. Also, developers need to know what the City is willing to help on. A lot of people have not discovered Andover yet and they need to sell it. The only people that came to meet with them were personally brought here; they have a problem marketing their community. She stated if they send out RFP's again they will get the same response and the City may need to do some courting. Commissioner Orttel indicated the Hartford Group should know the engineering data has changed and will change what the property can be used for. Mr. Neumeister advised what he thought was good from the plan of Hartford Associates is that the whole concept of what the EDA wanted out of the Andover Station South is included in the north area, with the vitality they were trying to create. When the proposal is written it should include that, the current RFP is wide open and does not give direction. Commissioner Jacobson suggested the developers be shown the main road, with them stating what they would like to build. President Gamache indicated Hartford Associates was looking at the residential area to make the project profitable, not the retail and commercial portion. It will likely keep coming back to the same thing with the next group of plans being somewhat similar and including residential. They also heard this from Dean Hanson. His concern is that they be ready to deal with that. They have always stated they want to stay with what the market would bear in regard to residential size. Commissioner Trude noted many of the people that work in Andover work out of their homes. Commissioner Knight stated the market for office space is small office space for individual businesses, rather than group offices. These people substitute the small office space for basement offices. ' Commissioner Jacobson suggested a deadline of February 1 st for staff to present the revised RFP's to staff. Mr. Neumeister indicated an EDA meeting is planned prior to the December 2nd Council meeting. Staffwill bring the revised RFP to the EDA meeting. If the EDA approves of the revised RFP it could be sent out by the end of the year. Commissioner Trude commented the city' of Blaine courted three or four big developers and chose one of them for their new development. ~/5- o o o -"................, Andover Economic Development Authority Meeting Minutes - November 12, 2003 Page 5 Commissioner Jacobson stated the RFP process should be open to everyone. A small developer may want to present their plan for only the housing component of the project, and they should have a chance as well as the big developers. Commissioner Trude noted many people think once Target comes on line this will go forward. Mr. Neumeister indicated when Target comes on line it will spark more action; it is tough to get any of this going without something like a Target to draw from. Word of mouth and articles in the newspaper are beneficial. Commissioner Trude stated Andover is on the county's agenda for January 30th. This will be the time to make their pitch and show the county what they are doing and planning, including the nice housing and the high school. Andover is now the third largest city in the county. They should show the market value of the City that is going to the county in county tax dollars. OTHER BUSINESS There was no other business to come before the EDA. MOTION by Jacobson, Seconded by Larsen, to adjoum. Motion carried unanimously. The meeting adjourned at 7:38 p.m. Respectfully submitted, Carol Hamer, Recording Secretary ..c../+_ o o o CITY OF NDOVE 1685 CROSSTOWN BOULEVARD NW.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US TO: EDA President and Board Members John Erar, City Administratof Will Neumeister, Community Development DirectortV'l- CC: FROM: SUBJECT: Discuss Creation ofTIF district for Hughs Industrial Park DATE: February 3, 2004 INTRODUCTION There has been some discussion in the past about studying the possibility of setting up a Tax Increment Financing (TIF) District for the Hughs Industrial Park. The City staff has prepared this memorandum to briefly touch on some issues that need to be debated before a decision to set up a TIF District is made. DISCUSSION Creation of a TIF District for Hughs would be based on meeting the statutory criteria for a redevelopment district. City staff would need to work with our bond counsel to establish that the criteria could be met (i.e. job creation, meeting the blight test, dilapidated or substandard structures, etc.) To give the EDA a feeling for what currently exists at the Hughs Industrial Park, pictures of the existing buildings and site maps ofthe individual sites in Hughs Industrial Park have been attached. Note that most of the buildings have exterior materials that are Butler type steel panels. The area is without City sewer or water services and this type of construction is typical of outlying rural industrial areas around the Twin Cities. To establish a redevelopment district, the City would need to be able to prove that the structures are substandard or dilapidated and this could prove to be rather challenging. Many ofthese buildings do not appear to be dilapidated, only built ofthese types of panels. The ability to create a TIF district for redevelopment depends upon the existence of conditions that meet the "slum and blight" test, which could be very difficult to prove at this point in time. Timing of the establishment of the TIF district should be evaluated. Prematurely establishing a TIF district could aversely affect its overall success. The lack of any City utilities to serve the area at this time, could prove to be detrimental to the establishment of the TIF district at this time. The EDA needs to ask the question whether this is the proper tool to use at this point in time. o o o The City should also keep in mind that there is another method to go about changing the character of the area. This could be done by establishing higher zoning standards for building materials, front green space requirements and landscaping for industrial areas. The use of zoning regulations is a way to ensure new development will be built to meet the City's expectation. As new development occurred, then the new business would need to comply with these requirements. The use ofTIF could be reserved for a time when city utilities are extended (some 10-15 years into the future). ACTION REQUESTED EDA is asked to consider these issues and determine whether there is a desire to pursue the establishment of a TIF district for Hughs Industrial Park at this time. If the answer is yes, staff will need to work with the bond counsel and our fiscal advisor to determine whether the case can be made that this industrial park can meet the statutory requirements (i.e. "slum and blight" test) to establish a TIF district. Respectfully submitted, a- Will Neumeister Attachments Aerial Photos Building Photos -2- 16615 3068 3024 16608 0 -- ------------ 16463 3125 3061 3051 3041 3021 ~(-34TH LN 16437 3020 3124 3104 3060 3040 16425 16415 2776 3125 3105 3061 3031 3021 2981 2927 16405 164TH /WE 3251 I- (f) 3153 3124 --' 3106 3060 3040 3020 => 16377 a z 16369 0 16340 , 3105 3055 16351 16341 16315 3126 31'60 / ~R1 I \ tfi\\ City of \[.Y Andover Half Section Address Book 2975 ~ 10 10 ~ 10 Ie 3139 N ...... 0> 3055 3021 3233 I- ...... ...... ...... ...... 0 0 (') (') (') (') (') (') II \ 16'/ n L.N 3160 3118 3098 3138 16191 16180 16191 3121 3017 16125 NORTH 1/2 SECTION: 16 TOWNSHIP: 32 RANGE: 24 Map Date: July 22, 1999 -3- 2875 2855 2837 i f) 1 ::;- LEGEND D Half Section Bound P Lots I Parcels l/'.';:.i.i'.~ P ks >":":-'2' . ar L_ Water Features D Right-of-Way r-.. I . , i I. . I . L.. o ,. ... . ... -"'...--. . J I - I o - ..- - ...J o ~Df\ ~us~ --r~ rp.Q.Y~) ~ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US OfLw ( If' TO: EDA President and Board FROM: John Erar, EDA Executive Director SUBJECT: Consider Anoka County Economic Development Authority Legislation DATE: February 3,2004 INTRODUCTION If time permits, Anoka County has prepared draft legislation for the establishment of a County Economic Development Authority. County officials have requested that cities discuss this new proposal in terms of soliciting comments and support for this new legislative initiative in 2004. DISCUSSION As Board members may recall, Anoka County proposed legislation last year that failed to garner legislative support from cities in creating a new County economic development authority. Concerns expressed by city leaders revolved around the ambiguity of additional tax levies to support County economic development efforts, duplication of effort, the absence ofa formal mechanism for cities to provide input on proposed projects and a general sense that the authority being sought by the County would undermine local efforts and force cities to accept projects they did not necessarily support. The cities of Blaine, Coon Rapids, Anoka and Columbia Heights have indicated they will most likely support the County's new legislation. Proposed legislation and the letter from Commissioners Langfeld and Kordiak appear to address several of these concerns, however the EDA Board may wish to discuss this new proposal in light of the changes made by Anoka County, and their renewed attempt in the 2004 legislative session to gain passage of their new bill. ACTION REOUlRED For EDA Board discussion. This item will also be on February 17, 2004 Council agenda, as County officials would like to address the full Council on this proposal and respond to any questions or concerns by the Council. y submitted, COUNTY OF ANOKA OFFICE OF COUNTY BOARD OF COMMISSIONERS GOVERNMENT CENTER 2100 3RD AVENUE. ANOKA, MINNESOTA 55303-2265 (763) 323-5700 January 9,2004 The Honorable Mike Gamache Mayor City of Andover 1685 Crasstown Blvd. NW Andover, MN 55304 Dear Mayor Gamache: The meeting afDecember 30,2003, was held to discuss the Anoka County proposal for speciallegislatian to enable the county to engage in economic development and transit oriented activities with representatives from numerous municipalities attending. Our thanks to those of you who participated and provided thoughtful suggestions and excellent inquiries about the county proposal. The consensus was that the county move forward with the drafting of the concept in legislative form. That draft is naw completed and enclosed with this letter for your information. A question raised at the meeting was what types of economic development activities could the county engage in if the proposal became law. The draft language provides that the county be authorized to engage in the same economic development activities cities and most counties currently are allawed. The statutes allowing for these activities are found in Minn. Stat. SS 469.090 through 469.1081. The county proposal would not allow an additional levy nor include the provisions for establishment of a separate commission, as Anoka County activities will function under the organizational umbrella of the county rail authority. A copy of Minn. Stat. S 469.090, which generally outlines allowable econamic development activities is enclosed for your infarmation. Another excellent suggestion made at the meeting was that if the legislation passes, a multi-jurisdictional advisory group be organized to establish guidelines and criteria to review proposed economic development projects. There are a number of models we could modify to fit these needs. Again, our thanks to all of you who have taken the time from yaur busy schedules to meet, discuss, and affer input on this important issue. Sincerely, Commissioner Margaret Langfeld Chair, Intergovernmental Committee Commissioner Jim Kordiak District #4 LS/tc Enclosures cc: Jahn Erar, City Administrator FAX: 763-323-5682 Affirmative Action / Equal Opportunity Employer TDD/TTY: 763-323-5289 DRAFT OF JANUARY 13,2004 FOR DISCUSSION PURPOSES ONLY A bill for an act 2 3 4 relating to the Anoka county regional railroad authority; authorizing the Anoka county regional railroad authority to exercise economic development authority powers. 5 6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 7 Section 1. [ANOKA COUNTY REGIONAL RAILROAD AUTHORITY POWERS.] 8 Subdivision 1. [ECONOMIC DEVELOPMENT POWERS AND DUTIES.] The Anoka 9 countv regional railroad authoritv mav exercise anv of the powers and duties of an economic 10 development authoritv under sections 469.090, 469.098, and 469.101 to 469.106. The Anoka 11 countv regional railroad authoritv mav exercise the powers under sections 469.001 to 469.047 12 for the purpose of transit oriented development except that the Anoka countv regional railroad 13 authoritv mav not exercise the power to tax under section 469.033, subdivision 6. In applying 14 sections 469.001 to 469.047, 469.090, 469.098, and 469.101 to 469.106, to the Anoka countv 15 regional railroad authoritv, the countv is considered to be the citv and the countv board is 16 considered to be the citv council. 17 Subd.2. [RELATION TO LOCAL AUTHORITIES.] Nothing in subdivision 1 shall 18 alter or impair the powers or duties of a citv, a town, a municipal housing and redevelopment 19 authoritv or a municipal economic development authoritv. 20 Subd. 3. [LOCAL APPROVAL.] If anv economic development project is constructed in 21 the county pursuant to the authorization in this section, the project must be approved bv the 22 governing bodv of each citv or town within which the project will be constructed. 23 Sec. 2. [EFFECTIVE DATE.] Section 1 is effective the dav after the governing bodv of 24 the Anoka countv regional railroad authoritv and its chief clerical officer timelv completes its 25 compliance with Minnesota Statutes, section 645.021. subdivisions 2 and 3.