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HomeMy WebLinkAboutEDA May 17, 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 May 17, 2005 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order 2. Approval of Minutes - April 19 and May 3,2005 3. Andover Station North Development 0 4. Letters of IntentlPurchase Agreements Review 5. Other Business 6. Adjourn o 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:: Economic Department Authority . .. Jim Dickinson, Executive Direct~ Vicki V olk, City Clerk <:J CC: FROM: SUBJECT: Approval of Minutes DATE: May 17, 2005 INTRODUCTION The following minutes were provided by TimeSaver Secretarial Service for approval by the EDA: April 19, 2005 Regular Meeting (Schultz absent) May 3, 2005 Regular Meeting (Schultz absent) DISCUSSION Attached are copies of the minutes for your approval. ACTION REOUIRED The EDA is requested to approve the minutes of May 3,2005 and April 19, 2005. Respectfully submitted, ([L. ()dL/ Vicki V olk City Clerk cv o o o DRAFT . ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 19, 2005 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, April 19, 2005, 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 member Robert Nowak Edward Schultz, Advisor to the EDA Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer, David Berkowitz Others Absent: Also present: APPROVAL OF MINUTES April 5, 2005: Correct as written. MOTION by Knight, Seconded by Orttel, approval of the Minutes as written. Motion carried unanimously. UPDATE PURCHASEAGREEMENTS - CASEYITRAMM Community Development Director Neumeister stated staffhas beenin discussions with Mr. Casey and Mr. Tramm regarding their purchase agreements. Mr. Neumeister noted a change to the size of parcel I, increasing it by twenty feet. Commissioner Trude asked if this would make it difficult to get a restaurant in there. Mr. Neumeister did not think it would. Commissioner Trude asked if there is an escalator on the property for Tramm. She wondered if they are going to be giving Tramm eight months free. Mr. Neumeister stated they would not. Mr. Dickinson stated the main thing is the closing and the eamest money is non-refundable. Commissioner Nowak asked if the agreement is transferable. Mr. Neumeister did not know and noted he would need to look at the contract for information on this. Commissioner Orttel thought they should be looking at this a little closer because this will be o Andover Economic Development Authority Meeting Minutes - April 19, 2005 Page 2 going on two years at the 2004 property value price. . - - - - - - - Commissioner Jacobson stated he did not see a right of refusal in the agreement. Mr. Neumeister stated the City Attorney indicated this is a separate document. He did not think there was transferability on the property ifhe decides not to build on the property. Commissioner Trude stated this is more like an option and not buying the land outright. She stated it is holding the land for Tramm so no one else could come in and buy it. Commissioner Trude thought they should have the City Attorney at the next meeting to give them input regarding this. Mr. Neumeister thought because ofthe questions, they may want to postpone this until the next meeting. Commissioner Jacobson thought they should get a plan from Tramm on a proposed use. Commissioner Orttel asked what changed in the Casey plan. Mr. Neumeister stated the change in the Casey plan is the additional twenty feet. o Commissioner Trude stated on the Tramm plan they want to include a contingency on building within a year. She stated on the Casey plan, she thought he was going to do more landscaping instead of parking. Mr. Neumeister stated he would like more parking stalls along Jay Street with more landscaping along there. Mr. Neumeister stated Mr. Casey would have to have the location sign on his own parcel. Motion by Jacobson, seconded by Trude, to approve the additional twenty feet onto the Casey property. Motion carried unanimously. Mayor Gamache asked on the Tramm site, how soon they would be able to get into the site if they did not want to postpone building. Mr. Berkowitz stated mid June would probably be the earliest. UPDATE ON LETTERS OF INTENT Community Development Director Neumeister stated there has been a new "Letter of Intent" received related to a lot located in Andover Station North, directly north of First Regents Bank. 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 o preparing purchase agreements on this particular parcel for this use. Mr. Rudnicki made a presentation to the EDA. It was noted the applicant is looking at April 2006 for the closing and construction date. o o o Andover Economic Development Authority Meeting Minutes - April 19, 2005 Page 3 Commissioner Jacobson indicated the parking will be facing Jay Street. He asked if people would . need to park in the back and walk around to the front. Mr. Rudnicki stated with the dance studio, they would incorporate a rear entrance so they could access the building from the parking area in the back. Mr. Rudnicki asked for an allowance for an on-site dry cleaner with on-site processing. He stated Mr. T's cleaning would be willing to give a tour of their site in Coon Rapids and the distributor would be willing to come in and discuss the issues. Commissioner Knight stated this is what he is concerned with because of the potential pollution and poisons being emitted into the air. He would like to have someone come in and discuss this with them. Commissioner Trude thought this would need to have a variance because she did not think it is an allowed business in Andover Station North. Mayor Gamache thought it would be a good idea to tour the Coon Rapids facility. Commissioner Orttel thought staff should check on what Coon Rapids allows regarding this. Mr. Neumeister stated they will try to talk with Regents Bank regarding a private drive that will be shared with all the properties. Mr. Neumeister stated they can try to get this shared access but they could not guarantee it. Commissioner Trude thought if Mr. Rudnicki could not get the dry cleaner in, they may want to get in a fast food restaurant. Mr. Rudnicki stated there is potential for a drive thru on the property with the front facing Jay Street. Mr. Rudnicki thought there was room to have two buildings adjacent to each other. Mr. Rudnicki's banker stated they may have a problem initially if they build two buildings because of the financing. This needs to be an owner occupied building. Commissioner Knight wondered if there were two buildings, would there be enough parking for both buildings. Mr. Rudnicki thought there would be. Commissioner Knight asked if there was a restaurant on the other piece would there be space for parking on the other site for a sit down restaurant. Commissioner Orttel asked if this is the same price per acre they talked to Oppidan about. Mr. Neumeister stated Oppidan wanted $5.25 over the whole site. He indicated Oppidan felt the front area was around $9.00 and the back area was around $3-$4. Commissioner Jacobson stated he did not like the $3.18 per square foot plus $.32/s.f. for park dedication fees because by the time Mr. Rudnicki actually builds, the park dedication fee may be o Andover Economic Development Authority Meeting Minutes - April 19, 2005 Page 4 more. He thought the price should be $3.50/s.f. Commissioner Orttel thought they should show this as a gross amount for their record keeping. Commissioner Trude wondered what they got from Regents Bank for the land. Mr. Dickinson stated it was $4.00/s.f. Commissioner Trude wondered if Oppidan I would be a better piece of land for the dance studio. She thought Oppidan II may be a better site for a restaurant. Mr. Neumeister thought Oppidan II is more valuable because it is on Jay Street and a site that has better site value. Commissioner Orttel asked if there would be access to Oppidan I from the Casey property. Mr. Neumeister stated they need to discuss this because staff told Mr. Casey there will need to be a private driveway and Mr. Casey will need to pay for part ofthis. o Commissioner Trude thought this would be a mistake not having a public road in there. She thought they could have a road maintained and owned by the association instead of Mr. Casey because they need to have a way to getto and sell the property in the back. Mr. Rudnicki's banker stated a private drive is also a question because of the financing and they cannot fmance a project without knowing all of the costs. Mr. Rudnicki thought if they were leasing space as a dance studio, location would not be a problem but if they plan on buying the land and renting to tenants, they would like a better site to help pay for the project. He thought the $3.50 per square foot was reasonable because of the price of the surrounding property. Commissioner Trude thought ownership was the question with the private road. Mr. Neumeister thought all of the property owners would share ownership and the City would maintain easement over the road for utilities. Mr. Neumeister thought the cost of utilities would be $1.00 per square foot along Jay Street. Commissioner Orttel did not think they were out to make money in this; they want to clean up the area and establish a tax base. Commissioner Knight thought they need to keep in mind what other properties in the City are getting for commercial. o Commissioner Trude felt they need more information on this. Mr. Neumeister asked ifthere was any way to run the building east/west so it did not interfere with the visibility of the building in the rear. Mayor Gamache thought the view may be blocked from Bunker Lake Boulevard by the bank if the building is turned. o Andover Economic Development Authority Meeting Minutes - April 19, 2005 Page 5 Commissioner Knight thought the people on Jay Street will be there for a reason, not by chance so it did not really matter if the building in the rear could be visible by Jay Street or not. UPDATE ANDOVER STATION NORTH IMPROVEMENTS There was not enough time to discuss this item. OTHER BUSINESS There was none. Motion by Knight, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting adjourned at 7:00 p.m. o Respectfully submitted, Susan Osbeck, Recording Secretary o o o o DRAFT ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MAY 3,2005 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, May 3,2005,6:00 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 Joyce Twistol and Robert Nowak; Absent: Non-voting resident members Edward Schultz Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Attorney, William Hawkins Others SWEARING IN EDA MEMBER - VERBAL Executive Director Dickinson swore in Commissioner Joyce Twistol to the Economic Development Authority. TOUR OF COMMUNITY CENTER PROJECT The Commission toured the Community Center. LETTERS OF INTENT/PURCHASEAGREEMENTS UPDATE Mr. Neumeister stated staffhas secured the services of Mr. Jason Messner of Patchin Messner & Dodd to provide an appraisal on the two parcels adjacent to Hanson Boulevard. No additional work has been done on the Play Ventures proposal since the last meeting. He indicated Oppidan has not proceeded forward with any additional dialogue on their proposal and Mr. Rudnicki is continuing to look at the parcel along Jay Street and would like to discuss his proposal at the May 17th EDA meeting. This proposal will require interpretation of the Design Guidelines relative to a dry cleaning business. Mr. Casey and Bruggeman Homes are moving toward closing. Commissioner Jacobson asked if staff discussed the price and reserving the land for a restaurant with Mr. Rudnicki. Mr. Dickinson stated Mr. Rudnicki would like to discuss this at the next meeting and make a presentation. o o o Andover Economic Development Authority Meeting Minutes - May 3, 2005 Page 2 Mr. Dickinson stated Mr. Rudnicki felt they had a good project and would like to make another presentation. Commissioner Orttel asked why they do not go to the other people and ask them to make an offer. Mr. Neumeister stated that is a possibility. One of the two is a local developer who would like to do light industrial like Mr. Casey. The other is another manufacturing company that is vying for different sites in the north metro. He thought there was some interest there but he did not know if they were a real good prospect at this point. Mr. Dickinson did not think they are fully prepared but they are interested in that parcel, they are kind of waiting to see what happens with the manufacturing facility. He thought they could adapt to another parcel. That would be their first choice but he did not think they would be willing to pay as much as the other project. The other projeCt would provide more upfront, higher paying jobs. Commissioner Trude thought the key was to get the jobs into Andover in order to get the restaurants. She went through the design guidelines and it specifically stated certain businesses. Mr. Neumeister stated they would need to rewrite the design guidelines in order to allow dry cleaning processing to be in the City. Mr. Dickinson stated Mr. Rudnicki wanted to make the argument that a better restaurant site would be along Bunker Lake Boulevard. Commissioner Knight did not think $2.00 a foot was feasible. Mr. Neumeister reviewed the plans for Mr. Casey's project. Commissioner Trude asked how they are marketing to the businesses that bring injobs. Mr. Neumeister stated so far the businesses have been coming to them. Mr. Dickinson stated the property sales have to be adjusted because their competition is giving the land away or selling the away for $1.00 a square foot or just a dollar. Commissioner Trude stated the property is guided for either industrial or commercial. She wondered if their appraisal was geared only toward retail. Mr. Neumeister stated the appraisal would evaluate anything on the allowable uses list. AUTHORIZE STREET LIGHTING AGREEMENT FOR JAY STREET/ANDOVER STATION NORTH Mr. Neumeister explained the EDA received three street lighting proposals for Jay Street from Connexus Energy. Direction was given by the EDA that staff should move forward and prepare an agreement for one of the options that shows fifteen lighting fixtures. Connexus Energy has prepared the agreement to install fifteen lighting fixtures along Jay Street at a cost of$62,386. They will be painted to match the color of the fixtures on the south side of o Andover Economic Development Authority Meeting Minutes - May 3, 2005 Page 3 Bunker Lake Boulevard in Andover Station. Commissioner Jacobson noted he has a conflict of interest and would not be voting. Motion by Trude, Seconded by Knight, to authorize the agreement to be executed by the Executive Director of the EDA so that the lighting fixtures can be ordered and installed later this summer. Motion carried 6 ayes, 1 present (Jacobson). OTHER BUSINESS Mayor Gamache asked if Commissioner Twistol received all of the pertinent information. Mr. Dickinson stated they will sit down with her and go over everything to update her. Motion by Knight, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 6:53 p.m. o Respectfully submitted, Susan Osbeck, Recording Secretary o o ,0 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 Jim Dickinson, Executive Direct~ . j Will Neumeister, Director of Co:n~ Developmentt<,.ij.n/ FROM: SUBJECT: Andover Station North Development DATE: May 17,2005 INTRODUCTION Since the work began on grading about three weeks ago, significant progress has been made in grading of this exciting new development area (Andover Station North). New development contacts have resulted in potential new interest in developing one of the light industrial sites for a new company that would employ about 45 people. Previously staff reported that a light manufacturing company was very interested in locating in the area and now we have learned that they are looking to lease rather than buy. We are looking into whether that is possible by opening up discussions with a local builder. DISCUSSION Work continues on removing contaminated soils following the approved soils management plan. Louis Rudnicki has requested time before the EDA to discuss his proposal for purchase of the site located directly north of First Regents Bank. He will be at the meeting to discuss his proposal/1etter of intent. ACTION REQUESTED This is an informational update for the EDA, no formal action is necessary. Respectfully submitted, 4/L Will Neumeister Q) 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 Jim Dickinson, Executive Direct~ // Will Neumeister, Director ofCo~ Development Wdv- FROM: SUBJECT: Letter ofIntent/Purchase Agreements Review May 17, 2005 INTRODUCTION DATE: Louis Rudnicki will be present at the meeting to provide answers to the questions that the EDA had asked and will present his rationale on why the EDA should consider his latest "Letter of Intent". As you will recall from the last discussion, he would like to develop a retail strip center that would be 7,500 square feet in size, with expansion potential. EDA is requested to hear his information and comment on whether there is interest in preparing a purchase agreement. o No other new "Letters of Intent" have been received and the City Attorney is continuing to work with attorneys for Mr. Casey and Mr. Tramm on their purchase agreements. Mr. Casey is awaiting the final form of the document so that a closing can be arranged. Mr. Tramm is no longer interested in pursuing the second parcel for office condominiums and would like to establish a closing date of July 2006 on the first parcel. Staff has indicated that this date will need to be approved by the EDA since it is later than originally expected. Staff was originally expecting a closing date of March or April, 2006. DISCUSSION Provided the EDA agrees to the terms and conditions contained in Mr. Rudnicki's "Letters of Intent", the EDA would need to authorize the City Attorney to prepare a purchase agreement. ACTION REQUESTED Staff requests the EDA to hear Mr. Rudnicki's presentation and comment on whether there is interest in preparing a purchase agreement with him on a land sale. Secondly, the EDA is asked to provide direction on Mr. Tramm's closing date. o Respectfully submitted, Will Neumeister~ Attachment Original "Letter of Intent" from Mr. Louis Rudnicki April 13, 2005 (0 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 Approximately 74,000 ftz 4. SIZE: p 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. 9; 7. DUE DILIGENCE: BUYER shall have 120 days from the execution ofthe 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. 8. MASS GRADING & UTILITIES: Property shall be delivered with mass grading completed and all utilities available at the perimeter of the parcel. -2- ,0 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. 10. BROKERAGE: BUYER and SELLER represent that neither party is represented and no brokerage commissions are due. 11. 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. ~~ Louis ~ ... ~ , Acknowledged this' day of ,20_ City of Andover, Minnesota Q By: Printed Name: Title: -3- /0 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: " 0, . "- -~- .i ~ I>'; o ) \ :t " ~ ~ ~ i j /.!l ~ ~ 9 '\ i6 ':1: 'e' ~. . ; 0 v :E ~l~ ',t; " 1.[ ~ ". oS :s j jili] ~ 11 ~ & ~ Li 1 lill !1Il: ~ \ IIll' ~ ,ill ri ~ ~ ! . .~ l-' " ~ tl, o -s--