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HomeMy WebLinkAboutEDA June 7, 2005 CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING June 7, 2005 6:30 p.m. Conference Rooms A & B AGENDA 1. Call to Order 2. Approval of Minutes - May 17,2005 3. Letters of Intent 4. Andover Station North Update 5. Other Business 6. Adjourn CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US Economic Department Authority Jim Dickinson, Executive Director ~ Vicki Volk, City Clerk ~ TO: CC: FROM: SUBJECT: Approval of Minutes DATE: June 7, 2005 INTRODUCTION The following minutes were provided by Staff for approval by the EDA: May 17,2005 Regular Meeting (Don Jacobson, Robert Nowak absent) DISCUSSION Attached is a copy of the minutes for your approval. ACTION REQillRED The EDA is requested to approve the minutes of May 17, 2005. Respectfully submitted, eLL. O.Lb Vicki Volk City Clerk @ ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MAY 17,2005 - MINUTES A meeting of the Andover Economic Development Authority was called to order by Vice President Julie Trude at 6:05 p.m., Tuesday, May 17, 2005 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Joyce Twistol, Mike Knight, Ken Orttel, Mike Gamache (arrived at 6:14 pm) Don Jacobson, Robert Nowak Jim Dickinson, Executive Director Dave Berkowitz, City Engineer Will Neumeister, Community Development Director Others Commissioners Absent: Also Present: APPROVAL OF MINUTES Motion by Knight, seconded by Orttel to approve the minutes of May 3,2005 and April 19,2005 as written. Motion carried. (Commissioner Twistol abstained on approval of the April 19, 2005 minutes.) ANDOVER STATION NORTH DEVELOPMENT Mr. Neumeister noted that he met with a company looking for a light industrial site for a bindery operation. They were quoted a price of $2.60 to $2.65 a square foot as well as a 10% park dedication fee. The health food company is interested in leasing rather than buying a site. A local builder might be willing to build the building and then the health food company would lease a space. Vice President Trude noted that between the two we would have a couple of hundred employees during the day. Commissioner Knight stated that he received a letter from a woman concerned with the ballfields and asked if we are cutting back on the size of the fields. Mr. Berkowitz stated no. Mr. Dickinson explained that the Mayor sent a response to her explaining what we are doing. President Gamache arrived- 6:14 pm) Mr. Neumeister noted that the negotiations on the Brad Povlitzki property have been completed. Economic Development Authority Meeting May 17, 2005 - Minutes Page 2 Commissioner Trude asked. what would be across from the lot north of Casey I and II. Mr. Dickinson stated that area contains wetlands. LETTERS OF INTENTIPURCHASE AGREEMENTS REVIEW Mr. Neumeister explained that Mr. Rudnicki would like to develop a 7500 square foot retail strip center with potential expansion. Louis Rudnicki stated that at the present time the bank property is probably worth $5.40 per square foot with direct access to Bunker Lake Boulevard and Jay Street. The parcel he is considering has frontage on Jay Street but no direct access. In addition to the sale price, there will be another $30,000 for the road that will require maintenance and repairs. He feels that $3.50 per square foot is a reasonable price. They would rather put more money into the building than in the land. As part of an SBA loan, the building has to be owner occupied and if they sell the building within 10 years there is a significant penalty. He feels that his dance studio would be an asset to the community. President Gamache asked ifhe would consider a front forward design or two buildings. Mr. Rudnicki stated that because of the requirements of the SBA loan they would not be able to do two separate buildings. However, a double fronted building would work. Commissioner Trude asked what portion of the building the dance studio would be. Mr. Rudicki stated 60%. Commissioner Trude asked what the other area would be. Mr. Rudnicki stated that they are proposing a dry cleaner with on site processing. Commissioner Trude asked if the dry cleaner would be 3000 square feet and the dance studio 4500 square feet. Mr. Rudnicki stated yes. He also noted that a kick-boxing studio has expressed an interest as well as a chiropractor. The idea of a fast food restaurant came up at the last meeting and there is room for that. Commissioner Trude asked if Mr. Rudnicki would be willing to look at the site to the east so this site could be preserved as a restaurant site. Mr. Rudnicki stated that he would like to find a way to make this work. Commissioner Knight asked what the utilities cost is for this site. Mr. Neumeister stated it's two million dollars to grade and build the road which comes to about $1.00 per square foot. Mr. Dickinson asked if74,000 square feet is needed for this project. Mr. Rudnicki stated that is probably more land than is needed. He asked Mr. Dickinson what they would do with the rest of the land. Mr. Dickinson stated they are trying to figure that out. Mr. Dickinson asked the EDA if they want staff to continue to work with Mr. Rudnicki on his proposal. Economic Development Authority Meeting May 17, 2005 - Minutes Page 3 Commissioner Orttel asked if these businesses have to pay area charges. Mr. Berkowitz stated they pay area charges but not laterals. Commissioner Trude stated that this was going to be a restaurant pad. Mr. Neumeister noted that he received a call from a party who would be willing to build a retail center and would pay $5.00 per square foot. Mr. Neumeister explained that at the last meeting he brought up the uses in the guidelines and they do not include a dry cleaner with processing. Mr. Rudnicki stated that they are not willing to let their request for a dry cleaning business get in the way of their coming in here. Mike Mulrooney asked the EDA to keep in mind that the building frnish will be similar to what is in Riverdale. The EDA needs to look at loan to value. Ifhe ends up paying more than what the property is appraised at that is more money coming out of his pocket. If the property costs get too expensive, they will affect marketability as far as getting tenants. Commissioner Trude noted that they had a discussion on this at a previous meeting and said it should be kept as a restaurant site. Mr. Dickinson asked the EDA if they want staff to work with Mr. Rudnicki on either the Oppidan I or Oppidan II sites. Commissioner Twistol asked if this is the frrst parcel to be sold in this area Mr. Dickinson explained what is going on with the other parcels. President Gamache stated that at this point he thinks the EDA is looking for something different on this site. Commissioner Trude noted that we need to have businesses that have jobs or the restaurant is not going to make it. Commissioner Orttel felt that the lots should be broken down into smaller sizes. He asked why we don't have a sign out there that says "Retail Sites Available". President Gamache stated that the EDA is still interest in keeping the piece Mr. Rudnicki is looking at for something different and staff should work with Mr. Rudnicki. Motion by Trude, seconded by Knight to adjourn. Motion carried unanimously. Meeting adjourned at 7:00 p.m. Economic Development Authority Meeting May 17,2005 - Minutes Page 4 Respectfully submitted, Vicki V olk City Clerk . @ 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 Directo~ ~. , / Will Neumeister, Director of Community Development~ FROM: SUBJECT: Letters of Intent DATE: June 7, 2005 INTRODUCTION The EDA is asked to consider the request of Mr. Casey to address three issues that he has outlined in the attached letter regarding the land he is proposing to purchase in Station North. Attached. The changes he is asking for would be considered revisions to the letter of intent he previously submitted. DISCUSSION Staff requests the EDA review Mr. Casey's letter and address the following issues: 1. Should the driveway serving Mr. Casey's parcel and three others be private or public. 2. If the driveway is to be public, the width at 40 feet will need a variance to minimum size standards for public right-of-way. Will a variance be able to be granted or will a PUD be supported? 3. Will Tax Increment Financing assistance be considered for Mr. Casey to construct the street, whether it is private or public? ACTION REQUESTED Staff requests the EDA review the letter from Mr. Casey and advise staff as to the direction they would like to proceed relative to any adjustments in plans, TIF assistance and the original letter of intent/purchase agreements. Respectfully submitted, Will Neumeister ~ Attachment Letter from Michael Casey JUN-02-2005 07:12 AM NORTH STAR GLASS 763 421 0308 P.02 June 1, 2005 Will Neumeister Andover Economic Development Authority 1685 Crosstown Blvd. N.W. Andover, MN 55304 Dear VVIII: I am writing this request in regards to your suggestion from our conversation on Monday, May 31, 2005. I have consulted with my advIlOl'S, Which lncludEt my Attorney..Davld Johnson with Moss & Burnett, CPA..Jon Enstad with Hubner, Enstsd, OvIk & Co., Ltd, and general contractor-Mark Steingass with Benson-Orth Associates Inc., who have brought up a few Items I would like the E.DA committee to please consider in I'I!Ifetence to Andover Station North Development. The first item pertain$ to the new access mad that runs eastMest of my properly and the other concem involVes tax Inaemented fioarn:ing. As it is m.wn out on the plat layout of AndOver Station North thet8 is a "new access road". This road !tinS eastlwest in front of my property, the property next to me, the property earm8rited for a strip mall and 101 Regions Bank. ThIs"atces8 road" is marfwd as an association owned private drive. I've spoken with Roger Okennan, President of 101 Regions Bank and financer of my property, who has ahared his understanding that this access road was most certainly going to be a city s1reet. My futute property owners and advisors find it undesimbJe and are concerned wlth the potentiaJ frability risk and mad maintenance. According to the layout, the acc:ess road is proposed to be 40' wide. My request involves the E.D.A. cornmItfae to allow this s1reet to be constructed as a city owned street at 40'. I checked with Mark steingass-Benson Orlh, and they would be wilJing to build this new city street to be 40' wide along with the buildings on my lot They did not foresee any problems to this proposal. From my understanding, the property I am developing lies within a tax incremented district of Andover Station North. If the committee allows my generaJ contractor to build the road to exist as a city street that is maitlaioed by the city, I would like to request tax inaemented flnancing. The main reason for my request Is that when I originally looked at the planned development, there were two cum cuts on my property accessing Jay Street. I understand changes are constantly necessary to improve the property for all who are involved. The "access road" was an unexpected change that dmstlcaJly involves my future owners and finanC9$. Could the E.DA please cc::Jmider my request for T.l.F. to defray the cost of this eastlwest access road? I thank you for granting me the opporD.mity to bring this to the E.D.A. I am confident these changes would greatly benefrt an parties Involved. SIncerely, CITY OF NDOVE B 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US FROM: EDA President and Board ~ Jim Dickinson, Executive Director Will Neumeister, Director ofCommum Development U./&r- TO: SUBJECT: Andover Station North Update DATE: June 7, 2005 INTRODUCTION At the last meeting, the EDA asked staff to prepare a concept plan for the southern twenty acres of Andover Station North. Attached is the schematic plan for that area. One of the sites has a letter of intent from Michael Casey and is shown on the site plan (31,000 square foot building). Mr. Casey is still interested in obtaining the "Right of First Refusal" for a second future development site located directly to the east. In a year or two, he could conceivably build another light industrial building on that property which would be approximately 20,000 square feet in size. The site with frontage along Bunker is being planned for a shopping center that would be nearly 30,000 square feet in area. We have an interested buyer for the land if they can gain approval to occupy 10,000 to 12,000 square feet of the center with an off sale liquor store. The major issue for this area is whether the City can formally obtain the "right in"/turn lane from Bunker Lake Boulevard from Anoka County. The City EDA will need to prepare a detailed plan that can be brought before Anoka County Highway Department to confirm their verbal agreement. These sites are not as marketable without that "right in". Based on comments at the May 17th EDA meeting, the concept plan shows the site located directly north of the bank with a question mark. Based on the need for a driveway to serve the Casey lot(s), a plan will need to be prepared for a private driveway and the right turn lane off of Bunker. Staff would like the EDA to authorize a consultant to prepare such a plan and have it readied to be bid out for construction this year. This would also mean that plans for the sanitary sewer, water main and storm water be prepared to serve these lots. DISCUSSION Staff requests the EDA review the concept plan and determine what developments staff should be pursuing for the lots on the southern twenty acres of Andover Station North. At the previous EDA meeting, Louis Rudnicki had discussed with the EDA his proposal to purchase the site located directly north of First Regents Bank. Staff and Mr. Rudnicki need to have direction on the EDA's land use choice for the site. Site work continues on removing contaminated soils following the approved soils management plan. Utilities work is expected to begin in about one week. Staff is also continuing to work with a local developer for a plan to develop office condominiums on a site that Mr. Tramm was originally interested in. Mr. Tramm has indicated that the soonest he would be able to purchase the first parcel would be July 2006. Staff is of the opinion that is too far out to continue to work with him on his proposal. Staff would like to bring forward proposal at the next EDA meeting that will show another office condominium option from a local developer that should be considered, in light of delayed take down date that Mr. Tramm has proposed. Mr. Tramm is no longer interested in pursuing the option to purchase the second site. ACTION REQUESTED First, staff requests the EDA review the concept plans and determine if this is "The Plan" for developing the sites on the southern twenty acres of Andover Station North. Secondly, staffwould like confirmation by the EDA of what they would like the site (north of the bank) marketed for, leading to a definitive yes or no to the Louis Rudnicki proposal. Thirdly, staff would like the EDA to authorize preparation of plans for a private drive, utilities, and right turn off of Bunker Lake Boulevard and have it bid out for construction later this year. Respectfully submitted, Will Neumeister UKiv-- Attachment Concept Plan for southern twenty acres of Andover Station North -~(&Nce IT MN U i!; ll: ~ '"' ~ . ~ . Z I ~ -------------,~~---------------1 I I I I ",0 I 1 _________________ 1 I I 1 1 ~ ~ g, 10 ~I ~ 1 I I I I ! I ~~..b,.. I ..~_.....- S89'44'16"E , .~-~~~~~~~~~~~~~~~-~~~~~:::~~~~~~~~~~~~~~~~~~-~r-=--=--=--=--=- 283.39 -=--=--=--=---1 . --.1 I",,~ " - I "V. . 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