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Home My WebLink AboutEDA March 16, 2004 ~ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN,US CITY OF ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING March 16, 2004 - 6:00 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes - March 1, 2004 3. TIF District for Hughs Industrial Park - Finance/Planning 4. Authorize Resolution-Redevelopment Plan/Community Center - Finance 0 5. Other Business 6. Adjourn , "0 CD '\ ) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Economic Department Authority CC: John Erar, Executive Directof" FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: March 16, 2004 INTRODUCTION The following minutes were provided by TimeSaver for approval by the EDA: March 1, 2004 Regular Meeting (Schultz, Larsen, Knight absent) ,J DISCUSSION Attached is a copy of the minutes for your approval. ACTION REQUIRED The EDA is requested to approve the minutes of March 1, 2004. Respectfully submitted, {.tL. ()~ Vicki V olk City Clerk \ \.j , <A.NDOVItI4 ) 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 MARCH 1,2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, March 1,2004,6:30 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Mllrnesota. Present: Commissioners Don Jacobson, Ken Ortte1, Julie Trude and Voting resident member Robert Nowak. Absent: Commissioner Mike Knight, Voting resident member Fred Larson and Non-voting resident member Edward Schultz. Also present: Executive Director, John Erar City Finance Director Jim Dickinson City Attorney, Barry Sullivan Others APPROVAL OF MINUTES J February 3, 2004: Correct as written. MOTION by Trude, Seconded by Orttel, approval of the Minutes as written. Motion carried unanimously. AUTHORIZE TERMINATION OF LEASE & GROUND LEASE, EXECUTION OF AN ESCROW AGREEMENT & CALLING PRIOR BONDS (PUBLIC WORKS BUILDING) EDA Treasurer Dickinson explained at the February 17,2004 Andover City Council meeting, Mark Ruff, the City's Financial Advisor from Ehlers & Associates presented the results of the . City's sale of a $3,890,000 G.O. Capital Improvement Bond, Series 2004A. Commissioner Jacobson stated he is not against this. He noted that they need to terminate the lease and ground lease when paying off the bond. He wondered if they will make a new lease with the new bond. Mr. Dickinson stated they will not; it will be transferred directly to the City. Mr. Nowak asked how they will be saving money. Mr. Dickinson stated they will be financing the bond at a lower rate. Commissioner Trude asked why they used March 16th for the date. Mr. Dickinson stated March 16th is the date they will close all the bonds. ,) Commissioner Orttel asked if they over levy for lease revenue. Mr. Dickinson stated they only levy for what they need. Motion by Jacobson, Seconded by Trude, authorizing the City Council to approve the attached " Andover Economic Development Authority Meeting ) Minutes-March 1,2004 Page 2 resolution "A Resolution Authorizing Termination of Lease and Ground Lease, Execution of an Escrow Agreement and Calling for Prior Bonds". Motion carried unanimously. (Res. R001-04) CONSIDER WINDFALL LEAN INDEMNIFICATION REQUEST FOR TARGET GREATLAND. Executive Director Erar explained staff discussion late last week with Target and Ryan Company representatives has resulted in a developer request for indemnification from the Andover EDA. This indemnification is specific to federal environmental legislation covering EP A efforts to obtain a windfall lien on past brownfield site remediation costs. Mr. Erar stated as this federal legislation has been interpreted to potentially allow the EP A to pursue environmental clean-up recovery costs from the original purchaser of a piece of contaminated property that is remediated and then sold at a profit. This issue is complicated by the belief of Target Corporation attorneys that the EP A could pursue litigation in the form of a lien on th,e property purchased by Target in an attempt to recover past environmental remediation costs. Staff and the City Attorney's office believe that the federal legislation on windfall liens , does not affect the ultimate end user, but only the original buyer of the contaminated property \ " .J before and after the environmental cleanup took effect. Mr. Erar explained Target will not realize any type of "windfall" profit on the site as they are paying what amounts to market value on the land from United Properties, the broker on the land deal. The EDA is already legally indemnified from any type of litigation, as the EP A has previously agreed not to sue the EDA once the site was remediated and prepared for redevelopment. Mr. Erar stated the terms of the general indemnification wilhemain the same. This item is related to some legal perspectives that are a little bit too conservative in regard to what the windfall lien implies. City Attorney Sullivan stated the statute is fairly new from 2001. He explained what the Statute means. Commissioner Jacobson asked if this is a Federal Statute and not a State Statute. City Attorney Sullivan stated it is. City Attorney Sullivan stated they do not feel this is a great risk to the City. They feel it is a low risk to provide an indemnity to Target. , Commissioner Jacobson stated they could only sue for unreimbursed costs. City Attorney / , Sullivan stated that was correct. City Attorney Sullivan stated the statute is meant to protect the Federal Government. \ Andover Economic Development Authority Meeting I / Minutes - March 1, 2004 Page 3 Commissioner Trude asked if the EP A will submit a letter of approval for this site. Mr. Erar stated it is the Department of Justice pushing this item. The EP A has already given their final reading of the monitoring well and delisted it. Commissioner Trude asked who has read the covenants to see who this covers. Mr. Erar thought City Attorney Hawkins read it. Commissioner Trude wanted to make sure the EDA is covered also. Commissioner Jacobson understood that the worst that could happen is they would only be liable for $500,000. Mr. Erar stated they have a written indemnification, a covenant not to sue. Target is pursuing delisting of the site and the EP A has indicated they are willing to delist this site. Commissioner Trude stated she would like a written letter of opinion in the file from the City Attorney regarding this. Mr. Erar stated the City has not granted any indemnification; the indemnifications have been done by the EDA. \ , / Motion by Orttel, seconded by Jacobson, to authorize the EDA Executive Director and legal counsel to prepare language that meets the concerns of Target and Ryan Company to the extent possible with particularity to this specific environmental issue associated with a windfall lien and the terms of general indemnification would remain the same. Commissioner Jacobson asked if they should have President Gamache look at the City Attorney letter. Mr. Erar stated he will mail it out to all of the EDA members. Motion carried unanimously. OTHER BUSINESS There was no other business. Motion by Nowak, Seconded by Orttel, to adjourn. Motion carried unanin1ously. The meeting adjourned at 6:57 p.m. Respectfully submitted, \ Susan Osbeck, Recording Secretary ,J CD , '-) 1685 CROSSTOWN BOULEVARD N.W.o ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US TO: President and EDA Members CC: John Er..-. Chy Admini,uatob FROM: James Dickinson, Finance Director L Will Neumeister, Community Development Directoritlc SUBJECT: TIF District for Hughs Industrial Park - Finance and Planning DATE: March 16, 2004 INTRODUCTION At the February 3,2004 EDA meeting there was discussion regarding Rick Lindquist's ylans for a new industrial building at the southeast comer of Round Lake Boulevard and 162n Lane. Staff was asked to review a "pay as you go" Tax Increment Finance (TIF) district on three parcels that Mr. Lindquist is interested in developing further. Staff was also directed to investigate the list of potential qualifying expenses that TIF could be used for. DISCUSSION . / J When envisioning what this request could mean to the entire Hughs Industrial Park, staff believes that this could serve the purpose of sparking others in the area to want to also upgrade their building and site. Staff feels that the "but for" test to establish the TIF district could be met. Staff would advocate that a "pay as you go" TIF district be established that would only apply to the four parcels along Round Lake Boulevard from 16151 to 162nd Lane. Staff feels this would make sense from the standpoint that there would be a new positive image for the Hughs Industrial Park and could set the stage for others in the industrial park to want to do the same. As others in the park may want to join in, then a second TIF district could be set up to do similar improvements to their properties. Staff feels it would be premature to establish a larger TIF district encompassing all the properties in Hughs Industrial Park at this time. Mr. Lindquist has indicated that he would not do any improvements on these properties unless the City establishes a "pay as you go" TIF district that he could use to pay for parking lot, site improvements, landscaping, etc. He understands that none of the TIF money could be used on the building itself. The attached site plans show the size building that Mr. Lindquist would like to build on the property. Long term, he would move the business from the steel building at 16191 Round Lake Boulevard to the new building. Then he would tear down the existing structure and build , '-~) a second new building similar to the one he is indicating he would build at the comer of 162nd and Round Lake Boulevard. \ The City staff have not done a complete review of the building plans at this point in time to - / determine the allowable building square footage and whether the septic drain field has been sized to handle the square footage of building that has been proposed. It should be noted that it could be quite costly to provide fire suppression inside this new building using a private welVtank system. Depending upon the Uniform Building and Fire Code requirements, the size and cost of the project could change. Mr. Lindquist's two parcels currently have a current taxable market value of$199,600 and with building improvements on them, it could be expected that the taxable market value would increase to approximately $1,050,000. Staff will provide a tax increment cash flow at the meeting that will aid the EDA in seeing how this would cash flow. ACTION REOUESTED EDA is asked to discuss whether the two parcels along Round Lake Boulevard should be established as a "pay as you go" TIF district at this time. If the EDA determines that this is the course of action they would like to pursue, staff (along with Ehlers Associates and Briggs and Morgan) would begin the process of preparing the necessary paperwork to establish the TIF district. Respectfully submitted, \ '- ) I!&I,"/~ Jim Dickinson Will Neumeister Attachments Map of Hughs Industrial Park Site and Elevation Plans of Mr. Lindquist's Building Minutes of February 3,2004 EDA Meeting , , '- J 198 162ND LANE NW 250.00 N 88'05'43" E ------,-,-----,-,-'-'-'-'-'-'-'-r'-'-'- , PROPOSED SITE ACCESS _ _ ~ EXISTING sm:==----r- - ACCESS TO BE REMOVED: : ..... ._._~ I TRASH ENCLOSURE _ _:_ _ SEE6/Al I "cBllUMINPUs--. . I PA~NG ~ I := \ /2'.12 8 NORTHERN LO:!:!, <0 I CYLINDER HEADS ,- Q 2,563 S.F. 12;;;;2 0 LO-H. I z IIIIl -;:c:;;:-:;;:-:;;:'';- - - - - -~ 0( I i: i: SLOP~ ""-BITU~NOUS\ g > I ~~_-_-_-_-_-)j-DEMOUSH PA~1 NG n Ilol 'I I @ ----j-----~~[)~~REi- ~ 4E p2'.,2 I ~ -I IG'J\. ~ _ _ ."EI.!O_YU)q~f-lGI2~. m__ u__ ~ \ F rOWER POLE r;- , j I m>.',1 ~ ~ /2.,2 I 40'-0' RE R INDICATES EXTENT O I <l. PROPOSED LO:!:!. . BUILOIN . OF EXISTING GRA\<U. I BUILDING 2'-0 SETBAC III 120, o' PHASE 1 'PA~-ING 10,484 S.F. EW 86/12 CONC. CURB E ACK SEE 2/Al (TYP.) \ III I I . 10'-0' .J ~ ~- I ~ d I I, , . \. . I ~ 'I' ~ '-' .~:\-t. r Q MONUME~T1sIGN, " SEE B/Al. I . I Z I I ;:) w. I I 0 o~1 I /..."'fr-----~--'~ w ,1IIIl C!~. I " g II IV-~A EXISTING I ~,-\ II) 1[,; BUILDING NO I ""T::__...l1._____JL_ / r ---------1 I INDICATES ~. I I, l5 ~~I~I~~ II EXTENT OF I EXISTING J,., -',.".,"' I ASPHALT C:::-;, / ~ 'I .' I . EXISTING SIDEWALK II INDIC -1 f-' ~:I L!, I tXTENT OF I 0.0_ r-----------i! ~XISTlNG _ g I '.... I I r - J I :' "'-EXlSTlNG~ I: tSPHA1. r 1 ui --;--t-i-/ I ': ASPHALT :1 I ---] ~ I I I, INDICATES II f---EXI!#nNGI ASFfiAL T ~ I it- - - - EKT.E.NI. Of - - - -ti I DRIVE l..A:NE I EXISTING I I I I I I' ASPHALT II ~~I~~NG .- -.\ :' PROPOSED I: I - j . I I I I II BUILDING II - - - -j \ . I I ~___$.01HA~E 2----!i I I LEGA ,I ' "'- -S.F. I - - - - I LOT . j I ~ * II I: I c/ 't~ I ANOf , / ___ I I v 7// . EXlSTlN INDICA S " IL - - - .J( V":: \ I SIGN I I - _~TENl1 OF I I EXISTING ib = = = = = = = = = = = dJ . I ~ - - A_SPHA1 T I ~2~~5ED I I I I L _ PONDING . I ,. I b:::~_I- - - - - - -Y ' J -3 - - - - I . - \ ____ ._-;~._.L._._._._._._._. ~ ,- 190.00 N88'OS'43"E --- _i u.. ~~:~ ...... ~~&:~ v_ .. t!~1X .. ~~ 1XF:5~ ~<r I O<r OUO @G~ ><0 ~~cl~ oz~ g" :>00 <ru c..uuu ~uu o:J:::&V) <rU -il II Y, II II " --r1 j I I I I I I I I I :J' I .. ,Q.u g~;;! I.... <r I~-i'! _I-HH~) g II:S~~ -NR: w :o....w "'..~ 'Y " I I,I III II' -M I, i1 ~ ~~ w'" ~gj trI:::& 0--' trio( 8 ;le: ~o C)~~ 0% zzo C)~ ~:i0 z :Ow ~:l ~~~ <o(~ ~f:l}- ~~ l~~ ~~ ~~~ I 00 o(aJ I I I I I I I I I I II II II II 0 II 0:: II <l: II > II W -' II => II 0 II CD -H w " :>:c -H <l: -' 0 "I Z d => "I 0 d 0:: "I <.:> -M z U 'I <l: 11 "- II II II II II II II II II , II , ) J.i / II II I I I -u 16615 3068 3024 16608 - ~ ----- I 16463 3125 3061 3051 3041 3021 I I . I ,64TH L~~ I 16437 3020 I 3124 3104 3060 3040 I 16425 I 16415 2776 I 3125 3105 3061 3031 3021 2981 2927 .~ 16405 164 TH />.VE 3251 I- (f) 3153 3124 :::! 3106 3060 3040 3020 163n ~ I a z 0 16340 -, 3105 3055 16351 16341 16315 3126 0> It) It) It) It) It) "'" 3139 ~::~~l:;3055 3021 .... (') (') (') (') (') (') , , 'N 2975 2875 2855 2837 3118 3098 16180 3121 3017 16125 ------- H;1~ / ~1 I \ I I I I ~ City of LEGEND Andover NORTH 1/2 SECTION: 16 Half Section TOWNSIllP: 32 RANGE: 24 D Half Section Bound , Address Book D Lots / Parcels '-> t.'L,,;i1 Parks '-"..':- -" . Map Date: July 22, 1999 L_ Water Features D Right-of-Way -4- , ) EDA Meeting February 7, 2004 - Minutes Page 2 missioner Jacobson stated that the way the RFP is written a developer would have to buyt ntire site. He questioned if that is what the EDA wants or would the EDA look at other pe e who would just want to do the housing or retail portion. Commissoner Knigh ought that the EDA had decided to make the RFP broad enough so they could look at seve developers for the site. Commissioner Trude felt that the document should be simpler. also noted that the most significant piece of information is the engineering study e by S.E.H. and that is not a part of the RFP. Commissioner Nowak suggested that Item 10, osed Purchase Price, should read, "Present a proposed purchase price for the entire de within the development...." and add a zoning map. Several commissioners felt that the last part of the proposal, "Prop I Review, Evaluation Process and Final Developer Agreement" should be shorten that as a courtesy to the bidders, they should know what our process is. , ) Mr. Neumeister was directed to revise the RFP and either em ail or fax it to the Commissioners. ~ DISCUSS CREATION OF TIF DISTRICT FOR HUGHS INDUSTRIAL PARK Mr. Neumeister explained that creation of a TIF district would be based on meeting the statutory criteria for a redevelopment district. Commissioner Jacobson asked if there is any other vehicle that could be used if a TIF district is not an option. Mr. Dickinson stated the possibilities are loan and grant processes or rezonmg. (Mr. Hawkins arrived at this time - 6:23 pm) Mr. Neumeister stated that most of the buildings have a mortar type appearance and it would be challenging to prove that they are dilapidated or substandard. We could set higher zoning standards. If you set up a TIF district too soon, water and sewer could become available. There is capacity in the pipe to run utilities to Hughs. Mr. Hawkins reviewed the criteria from State Law for establishing a TIF district noting that 70% of the district has to have buildings that are 50% dilapidated. '-_/ -6-- "- EDA Meeting ) February 3, 2004 - Minutes Page 3 Rick Lindquist explained that he would like to put a block building on 162nd and Round Lake Boulevard and make improvements to the building at 16191 Round Lake Boulevard. Mr. Dickinson felt that a pay as you go program would be the safest route to take. In this program the increment would indicate what he would get. Commissioner Trude suggested that the CDBG program could be another option. Commissioner Jacobson asked Mr. Lindquist ifhe is ready to proceed even without the TIF district. Mr. Lindquist noted that he is counting on the TIF. The EDA discussed creation of a TIF district using only three lots and questioned what the maximum increment would be. Motion by Trude, seconded by Orttel that staff evaluate further the "pay as you go" option for the build out of the three lots and come back with that information and to look at the list of potential qualifYing expenses. Motion carried unanimously. '\ Mr. Erar noted there is a revised bill the County is considering to allow them to ,~ j . . ment and transit oriented activities. County officials will be engage In economIc e at the Council's February 1 eting to discuss this information. Support is growing from some cities such as Columbia . hts, Anoka and Coon Rapids. They are talking about creating a multi-jurisdictional comm' e that would recommend projects to the County Board. Motion by Orttel, seconded by Jacobson to adjourn. Meeting adjourned at 7:00 p.m. Respectfully submitted, Vicki Volk City Clerk ,J -7- C I T Y o F GJ NDOVE , ) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US TO: Economic Development Authority (EDA) President and Commissioners CC: John Erar, EDA Executive Directof/ FROM: Jim Dickinson, EDA Treasurer SUBJECT: Authorize Resolution-Redevelopment Plan/Community Center DATE: March 16, 2004 INTRODUCTION As the Andover Community Center Project proceeds to an ultimate decision by the City Council within the month to move forward or not, the EDA will be called upon to provide lease revenue financing for the project Furthermore, if a decision is made to move forward and to achieve the opening date of October 4, 2004 for the ice arena the process for the financing plan needs to start now. DISCUSSION The first step in the financing of the Community Center Project is the initiation of the review process of a \ Redevelopment Plan (draft attached) that will need to be formally approved by the Planning Commission, " ) EDA and City Council. The Redevelopment Plan is a joint work product of Briggs & Morgan (EDA bond counsel) and City Staff. BUDGET IMPACT The issuance of lease revenue bonds will be used to finance the proposed Andover Community Center Project of approximately $17,200,000. ACTION REOUlRED The EDA is requested to approve the attached resolution, "RESOLUTION INITIATING PROCESS FOR ADOPTION OF REDVELOPMENT PLAN". "\ ent Resolution Initiating Process for Adoption of Redevelopment Plan / Draft Redevelopment Plan 01 , " ,-/ : ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ANDOVER, MINNESOTA J Member introduced the following resolution and moved its adoption: RESOLUTION INITIATING PROCESS FOR ADOPTION OF REDEVELOPMENT PLAN BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of the City of Andover, Minnesota (the "Authority"), as follows: 1. Recitals. (a) The Authority is authorized to exercise redevelopment powers under Minnesota Statutes, Sections 469.090 through 469.1082, among other statutory powers; and (b) It has been proposed that the Authority establish a Redevelopment Project Area as described herein (the "Redevelopment Project Area"), in connection with construction of a new community center and adopt the Redevelopment Plan for the Redevelopment Project Area (the "Plan"); all pursuant to and in conformity with applicable law. 2. City Council Public Hearing; Planning Commission Written Comment. Under applicable law, it is necessary for the City Council of the City of Andover, Minnesota to hold a '\ public hearing on the Plan, and the Authority hereby requests the Council to hold the public \.~J hearing, following notice thereof having been published not less than 10 and not more than 30 days prior thereto, and to consider thereafter the Plan for approval at a meeting of the Council on April 20, 2004. The Authority also requests the Andover Planning Commission to provide written comment on the Plan. Adopted by the Board on March 16, 2004. President Secretary The motion for the adoption of the foregoing resolution was duly seconded by Member , and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon the resolution was declared passed and adopted. \ '- j 1626254v2 , STATE OF MINNESOTA ) , '. ./ COUNTYOFANOKA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ANDOVER, MINNESOTA I, the undersigned, being the duly qualified and acting Secretary of the Economic Development Authority of the City of Andover, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the Board of Commissioners, duIy called and held on the date therein indicated, insofar as such minutes relate to the Initiating Process for Adoption of Redevelopment Plan. WITNESS my hand officially on March 16,2004. \ Secretary '- ./ Economic Development Authority ofthe City of Andover, Minnesota , " ./ , 1626254v2 2 , : ~ REDEVELOPMENT PLAN "\ \. / '- / 1626254v2 \ TABLE OF CONTENTS \ Page I. INTRODUCTION AND LEGAL BASIS ......................................................................... 1 A. Intent .... ................. ....................................... ........ ..... ................... .............. ............ 1 B. Statement .................. ................. ........................... ........... ..... ........ ......................... 1 C. Redevelopment Area Boundaries .......................................................................... 1 D. Statement of Authority .......................................................................................... 1 E. Findings and DecIaration.......................................................................................2 II. REDEVELOPMENT PROGRAM ....................................................................................2 A. Redevelopment Plan Objectives ............................................................................ 2 B. Land Use .....................................................................~.............................. 3 C. Redevelopment Activities............................................ ...... ...............................3 D. Firumdng Plan ....................................................{ ....................................... J E. Development Standards ...................................... ......... .................................. 4 F. Environment Controls.................................... ...... .......... ...... .....................4 G. Administration of Project ......................... ............................... .........................4 H. Modification of Plan ............................ . ...... ............... ...... .......... ............. 4 Exhibit A - Redevelopment Area Boundary Map Exhibit B - Budget \. .' J I 626254v2 1 " I. INTRODUCTION AND LEGAL BASIS ., '. ./ A. Intent The Economic Development Authority of the City of Andover, Minnesota (the "EDA"), proposes to establish a Redevelopment Project Area as described herein (the "Redevelopment Project Area"), in connection with the acquisition and betterment of a new community center (the "Community Center"). The City of Andover, Minnesota (the "City") will lease the building from the EDA with an option to purchase pursuant to a lease with option to purchase agreement. A portion of the Community Center will be leased by the City to the Young Men's Christian Association of Metropolitan Minneapolis (the "YMCA") pursuant to a sublease (the "Sublease"). Revenue bonds in the Prin~ount not to exceed approximately $ are proposed to be sold . EDA to finance the redevelopment projoot en,". The revenne bnn~ e '=red by the paymen" to be made by the City under the lease with opti to p ase agreement and payments to be made by the YMCA under t u e. In the remainder of the Redevelopment '. ) B. Statement contributing to the public health, safety and welfare er existing development. ment these parcels are not attainable in the foreseeable future without the . ention ofthe EDA in the development process. The EDA has prepared the edevelopment Plan, which provides for the elimination of these conditions, thereby making the land useful and valuable for contributing to the public health, safety and welfare. C. Redevelopment Area Boundaries The boundaries of the Redevelopment Area are outlined on the Redevelopment Area Boundary Map, Exhibit A. All land included in the Project Area is within the legal boundaries of the City. \ , .J 1626254v2 D. Statement of Authority I / Minnesota Statutes Section 469.001-469.047 (Housing and Redevelopment Authority Act) grants municipalities the authority to designate redevelopment areas within the boundaries of the municipalities. Within these areas, the municipality may adopt a redevelopment plan and establish a project consistent with the municipality's public purpose. The project as contemplated by this plan consists of a redevelopment project as defined in Section 469.001, Subdivision 14. The lease with option to purchase agreement is authorized under Minnesota Statutes, Section 465.71. E. Findings and Declaration The City and the EDA make the following findings: 1. The certain parcels ofland in the project for redevelopment without some pubr fi 2. The redevelopment plans for the 3. The Redevelopment '\ the locality as a w , ) II. REDEVELOPMENT PROGRAM A. The EDA, throug objecti 1. co effective and efficient Community Center for the City to uate City services to the region. 2. bte and seek the orderly and harmonious development of the elopment Area. 3. To provide logical and organized land use for the entire Redevelopment Area consistent with the Comprehensive Land Use Plan and the zoning ordinances of the City. 4. To promote the prompt development of property in the Redevelopment Area with a minimal adverse impact on the environment. 5. To provide general design guidance in conjunction with a suitable \ development contract in order to enhance the physical environment of the '---/ Redevelopment Area. 1626254v2 2 , 6. To provide adequate utilities and other public improvements and facilities, ) to enhance the Redevelopment Area and the City for new and existing development. 7. To assist the financial feasibility of private projects to the extent necessary and where there is a corresponding level of public benefit. 8. To enhance the overall economy of the City and surrounding area by retaining current, and providing additional employment opportunities for the residents of the City and surrounding community. 9. To increase the City's ta,x base by providing critical public infrastructure improvements for the City. 10. To stimulate development and investment by private interests. B. Land Use The proposed land use for the Redeve men. facilities and commercial land uses. uti facilities necessary for the public health, sa the Redevelopment Area. " , C. Redevelopment Activities j 1. The City pre 0 the Redevelopment Area on which the Community Cente 2. t any persons will be displaced as a result of this 3. unity Center and Other Public Improvements. The EDA proposes to cause the Community Center to be constructed and, as appropriate, other public improvements within the Redevelopment Area The Community Center will be leased to the City under a lease with option to purchase agreement and a portion will be subleased to the YMCA. D. Financing Plan 1. Project Budget J 1626254v2 3 ') Attached hereto as Exhibit B is a budget which details estimated development ,_/ costs associated with the acquisition and betterment of the Community Center. The items of cost and the costs thereof shown in the budget are estimated to be necessary based upon information now available. It is anticipated that the items of cost and the costs thereof shown in each category in the budget may decrease or increase, but that the total project cost will not exceed the amount shown above. 2. Source of Funds and Security The City is entering into the lease with option to purchase agreement with the EDA pursuant to Minnesota Statutes, Section 465.71. The lease with option to - purc~ase agreement is payable from general sources inc ding taxes, and its payment is not limited to a specific fund or specific s c f revenues. Sources of funds for any other public improvements includ s and charges, assessments and other available funds of the ED orC 3. Bond Issue Details The EDA will issue approximately $ in public facility revenue bonds to fmance the acquisition and bette the Community Center. No bonding has currently been structured to fin e co of any other public improvements. , /' E. Development Standards r t ings, the following factors when evaluating Ithin the Redevelopment Area seeking 1. e velopment objectives are provided for or enhanced. 2. this plan and the Andover Comprehensive Plan. F. ols It is presently anticipated that the proposed development in the Redevelopment Area will not present major environmental problems. All municipal actions and public improvements will be carried out in a manner that will comply with applicable environmental standards. The environmental controls to be applied within the area are contained within the codes and ordinances of the City. G. Administration of Project The Andover City Council has authorized the Economic Development Authority of the City to be responsible for seeing that the contents of this Plan are promoted, , " implemented and enforced. '.-) 1626254 v2 4 , \ H. Modification of Plan \. ~) The Redevelopment Plan may be modified at any time. The modification must be adopted by the EDA and the City, upon notice and after the public hearing required for the original adoption of the Redevelopment Plan. Changes that do not alter or affect the exterior boundaries and do not substantially alter or affect the general land use established in the plan, shall not constitute a modification of the Redevelopment Plan, nor require approval by the City. , '-- ~ / , \ ) 1626254v2 5 \ EXHIBIT A , / Description of the Redevelopment Area and Boundary Map '- -' } \._~... } 1626254v2 A-I Andover Economic Development Authority Redevelopment Project Area , / ,;... 10066 ;;: >! 0 ~ > --.J m v.. ... Z .- \ 0 ~ } if) , z <( I ~ ~ slIn , . - - / w~. Project Location Map . , EXHIBIT B . . , Budget Estimated Construction and related expenses $ Debt Service Reserve Capitalized Interest Costs ofIssuance Discount Factor - Total Issue (Rounded) $ <<: \ " - } , ) 1626254v2 B-1