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Home My WebLink AboutEDA August 17, 2004 / '\ '-J , '\ ,-) Sb\NDbVE~ 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 August 17, 2004 - 6:00 p,m, Council Chambers AGENDA I. Call to Order 2. Approval of Minutes - June 29, 2004 and July 6,2004 3. Discuss Proposed TIF District 1-4/ Approve Resolution Modifying Development District No, 1 and Tax Increment Financing Plan for TIF District 1-4 - Planning 4. Approve Andover Station North Marketing Contract - Planning 5. Discuss Andover Station North Development Plan - Planning 6, Review Request from United Properties for Use of Lot for Financial Institution- Planning 7. Verbal Update on Andover Station -Planning 8, Other Business 9, Adjourn , -----) :~ " u --J 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: CC: FROM: Vicki Volk, City Clerk SUBJECT: Approval of Minutes DATE: August 17,2004 INTRODUCTION The following minutes were provided by TimeSaver for approval by the EDA: June 29, 2004 Regular Meeting (Schultz, Larsen absent) July 6, 2004 Regular Meeting (Larsen, Nowak, Schultz absent) DISCUSSION Attached are copies of the minutes for your approval. ACTION REOUlRED The EDA is requested to approve the minutes of June 29, 2004 and July 6, 2004, Respectfully submitted, d.:L' (JtfL; Vicki Volk City Clerk @ :~) 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 JUNE 29, 2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, June 29, 2004, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Absent: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie Trude; Voting resident member Robert Nowak Voting resident Fred Larsen; and Non-voting resident member Edward Schultz Interim Executive Director, Jim Dickinson Community Development Director, Will Neumeister Present: Also present: APPROVAL OF MINUTES , " -..J May 25, 2004: Correct as written. Motion by Knight, Seconded by Jacobson, approval of the Minutes as written, Motion carried unanimously. APPROVE FIRST AMENDMENT TO DECLARATION OF COVENANTS FOR ANDOVER MARKETPLACE EAST Community Development Director Neumeister stated at the May 25,2004 EDA meeting, approval was granted for a TCF Bank to be planned for one of the properties at Andover Marketplace East. The attorneys have prepared the paperwork that is needed to allow this use of the property. Commissioner Jacobson inquired if the primary change had to do with the 10 percent floor space. Mr. Neumeister replied that was correct. Motion by Knight, Seconded by Gamache, to authorize the signing of the "First Amendment of the Declaration of Restrictive Covenants" by the EDA President, Executive Director and City Clerk. , "- ',-j Commissioner Trude stated that she has observed the number of parking spaces that are provided for at other banks and expressed concern that there may not be enough parking spaces incorporated with this bank. Mr. Neumeister replied that the current proposal does meet the City ordinance as it pertains to :J Andover Economic Development Authority Meeting Minutes - June 29. 2004 Page 2 parking space requirements., but the EDA will still have one more opportunity to review the plan and the materials of the proposed building. Commissioner Trude suggested that maybe they should be reviewing what the City's parking requirements are for financial institutions. Mr. Dickinson explained that previous direction from the EDA was that the development group come back with a plan that would not require any variances and comply with City Code. Motion carried unanimously. UPDATE OF ANDOVER STATION NORTH Community Development Director Neumeister explained the staff has been working to develop a land use plan and marketing drawing for Andover Station North. Mr. Neumeister reviewed the schematic drawing for Andover Station North with the EDA. " \ 'J Commissioner Knight inquired as to what type of use would be considered light industrial. Mr, Neumeister replied that one of the potential uses would be a builder showcase building. He explained that the units for the light industrial would be carved into 2,000 square foot bases to accommodate several different uses. Commissioner Jacobson inquired as to what the net density is in the residential portion of the development. Mr. Neumeister replied that six to eight units per acre is currently being proposed. He explained that they would be constructing two different types of units that would be affordable market rate housing and be owner occupied. Commissioner Trude suggested replacing the housing units adjacent to Jay Street with office units that look similar to the housing units. Mr. Neumeister replied that staff did talk to the developer about that possibility and it was his preference to have the housing come all the way to Jay Street. Commissioner Trude replied that she thought it would be a way to bring more commercial tax base into the City. Commissioner Knight inquired if it was possible to provide a mix of housing and residential along the main street. o Mr. Dickinson replied that is something they could negotiate with the developer, but noted that in reality the City would more than likely receive more tax base with the townhouse units rather than the commercial units because you have to provide for additional parking with the commercial units. / \ , ) Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 3 Commissioner Trude replied that typically the smaller single office units don't require a lot of parking. Commissioner Orttel inquired if it made sense to provide office above the proposed retail area. Mr, Neumeister replied that it is very difficult to market second level office space in the suburbs. Mr. Neumeister inquired if the EDA was in overall agreement with the concept of what is included in the schematic design for Andover Station North so that they can unveil it at the Andover GolfTournarnent. Consensus of the EDA was that they are in agreement with the concept plan for Andover Station North. Mr. Dickinson noted that the plan is always open for change, Commissioner Knight stated that at one point they had talked about having dual purpose parking areas between the ballparks and the commercial/industrial area and inquired if that was still the " case. Mr. Neumeister replied that that is something they will look to negotiate before they sell v the land, but that is the City's ultimate goal. Commissioner Jacobson inquired as to what the status is to upgrading the intersection of Hanson Boulevard and 139th. Mr. Neumeister replied that the intersection will have to be designed to accommodate the traffic that will flow in and out of the Andover North Station. Commissioner Jacobson inquired if the City was to going to depend on the County to build that intersection. Mr. Dickinson replied that the County will be upgrading the intersection, but the City will be asked to participate. Mr. Neumeister noted that upgrading the intersection is in the County's plan to be completed in the next two years, but that does not include installing lights at the intersection, which is why the City would probably have to participate. Commissioner Nowak inquired if staff was confident that three lanes was going to be adequate to serve the development. Mr. Neumeister replied that staff will be having consultants review the concept plan to detennine if the three lanes will work. Originally they had planned for five lanes, but that was when they were including more commercial development. CONSIDER CONTRACT/ADVANCE RESOURCES PROPOSAL ~-) Finance Director/Interim City Administrator Dickinson stated at the May 25, 2004 meeting, the EDA directed staff to discuss a perfonnance based marketing agreement with Mr. Mike Mulrooney of Advance Resources for Development, Incorporated, Staff has had discussions with Mr. Mulrooney and a proposal was presented for the EDA's consideration, Mr. Dickinson explained that the proposal was similar to the arrangement with Advance Resources for the initial ~ Andover Economic Development Authority Meeting Minutes - June 29. 2004 Page 4 development of Andover Station. The new proposal proposes various development services through a consulting fee/commission of seven percent of the negotiated selling price of the property sold. The proposal is perfonnance based as requested by the EDA, and if the EDA were to decide to proceed forward with the proposal, staff would recommend that the proposal be modified to allow that exclusions be made for proposals and contacts that City Staff has marketed to and secured development interest from in Andover Station North. Commissioner Trude inquired if Mr. Mulrooney would consider a flat hourly rate to assist with staff with the process in the situation where staffhas already secured development interest. Commissioner Nowak inquired if any thought had been given to pay a fee based on a sliding scale. Commissioner Trude replied that she was thinking of trying to have staff and Mr. Mulrooney work together rather than against each other. .~ Mr. Dickinson explained that staff did discuss with Mr. Mulrooney that they would want exclusions and he seemed fine with that. His concern is that at this point going forward it could be very fuzzy as to who those contacts are. Commissioner Jacobson stated that it seems that staff has had great success already with bringing in potential users and questioned if it is necessary to even enter into a contract with Advance Resources. Mr. Neumeister replied that he thought there were definitely contacts that Mr, Mulrooney has that City staff does not. Mr. Dickinson stated that he felt a joint agreement would work fine. Mr. Orttel inquired if staff felt that $4.5 per square foot was a reasonable market rate, Mr. Neumeister replied that the retail property is at least that, and the light industrial property would sell between $2.00 to $4.00 per square foot. He noted that the City does have to consider price breaks on the commercial/industrial section because surrounding communities are giving the land away. Commissioner Orttel inquired if the City would only be selling the building pad, Mr. Neumeister replied yes. . \ "0 Commissioner Orttel replied that if that was the case the City was providing a huge subsidy because the ponding, roads, etc will already be in. Mr. Dickinson stated that he is hearing from the EDA that they would like staff to discuss the possibility of a sliding scale fee on commercial/industrial transactions if appropriate, an hourly rate for service to assist with closings on any of the transactions listed under the exclusion, ~) Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 5 Commissioner Jacobson inquired if they would be entering into a one-year contract. Commissioner Trude replied that she thought it needed to be longer than one year. Mr. Dickinson inquired if the EDA felt that a seven percent commission was adequate. Commissioner Nowak replied that a seven percent commission may be adequate if they are selling property at $4.00 per square foot, but possibly not at $2.00 per square foot. Mr. Dickinson inquired if that is something that staff should discuss with ML Mulrooney. Consensus of the EDA was yes. Mr. Dickinson questioned what the sunset date of the contract should be. Consensus of the EDA was that the contract should be at least two years. . \ o Motion by Knight, seconded by Orttel, to direct staff to discuss the possibility of a sliding scale fee on commercial/industrial transactions if appropriate, include exclusions for current contacts the City has already entered into discussions with, an hourly rate for service to assist with closings on any of the transactions listed under the exclusion, and that the contract be a minimum of two years. Commissioner Trude inquired if staff was reluctant to move forward with the contract because they seem to be having good luck marketing the development on their own, Mr. Dickinson replied that things have been going good, but staff still needs assistance to get the development filled out in the time they have set forward. Commissioner Knight inquired if it will be possible to get started with the residential portion of the development before they begin the commercial/retail areas, ML Neumeister replied that staff would like to have commercial/retail contracts in place before the residential portion proceeds forward. Staffhas met with Bruggeman Homes and they seem to be in agreement with the current timeline. Motion carried unanimously. UPDATE ON PROPOSED TIF DISTRICT 1-4 " , ,--) Community Development Director Neumeister explained that staff held a meeting with the property owners in the area known as Hughs Industrial Park on June 22, 2004. There were five property owners representing nine of the properties present. Staff indicated that the process to set up the District must start over and the City wants to make sure they have discussed with all potential property owners in the area involved what the opportunity is and whether they would be ~) Andover Economic Development Authority Meeting Minutes - June 29. 2004 Page 6 interested in being included in the District. It was explained that in order to assist in qualifying parcels that will be included in the potential new district there will need to be a visual inspection and report on the properties to determine whether the conditions present will qualify the property for inclusion in the tax increment district. It was indicated that the inspection would not be used for anything other than determining if the site and building will allow the City to qualify the parcel in the proposed new TIF district. Generally there was acceptance that the City should proceed with the inspections and analysis of what can be done to set up the District for the entire Hughs and Westview Industrial Parks. Mr. Dickinson stated that due to the fact that a few property owners were not present at the meeting, staff will be individually contacting the other property owners in the area to determine if they are interested in being included in the proposed district. The general feeling that was prevalent at the meeting on June 22nd was that the properties could greatly benefit from being included in the TIF District and that the City should continue in the effort to expand the boundaries of the original area. Commissioner Orttel noted that MMHI is currently zoned residential so they should probably . " make changes to the zoning ifit is going to be included in the TIF District. ,~ ~) There was no action required. UPDATE ON MONUMENT SIGNS Community Development Director Neumeister explained staff has been working on determining the cost of the monument signs and have found that the cost will generally exceed $16,750 per monument sign. The goal of the EDA was to have monument signs at six to seven locations at entrances into the Community. Firm cost estimates that staff has received are far in excess of what had originally been envisioned. Staff is concerned that the direction this is taking is not in keeping with the original budget and also there are other priorities that they may want to consider before these signs are authorized. Staff would prefer to have the green metal entrance signs move forward and receive approval for construction and installation (cost $6,000 to $7,000) and hold off on the monument style entry signs. There are many costs that could be involved in the marketing of Andover Station North and staff would prefer to hold off on the large costs involved in the monument signs until the development of Andover Station North has generated enough additional revenues to support the large expense involved, President Gamache inquired if there was CIP money set aside for the monument signs. Mr. Dickinson replied yes, but explained that with as fast as Andover Station North is developing it makes sense to hold off on spending that money until the area is developed. Motion by Jacobson, seconded by Knight, to authorize the construction and installation of the green metal signs; hold on any further work on the monument style signs until Andover Station North has been nearly fully developed and there are sufficient additional funds to support the cost. ~) Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 7 Motion carried unanimously. OTHER BUSINESS Outlot Behind Walgreen's Commissioner Trude suggested that some sort of public art be placed on the outlot behind Walgreen's. Mr. Neumeister noted that there will be an item on the July 6th EDA agenda to discuss that property. Motion by Jacobson, Seconded by Knights, to adjourn. Motion carried unanimously. The meeting adjourned at 7:10 p.m. Respectfully submitted, .' \ <.-J Nanci Libor, Recording Secretary , \ o :J , \, '-J' , , I '-/ CITY OF NDOVE ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JULY 6, 2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, July 6, 2004, 7:08 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; and Non-voting resident members Edward Schultz Absent: Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Attorney, William Hawkins Others APPROVE RESOLUTION REQUESTING CITY COUNCIL CALL FOR A PUBLIC HEARING ON MODIFICATIONS TO DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT I-4)A REDEVELOPMENT DISTRICT) Executive Director Dickinson stated staff has been working Ehlers & Associates and the EDA needs to take action on the attached resolution to be on track for the calling of the Public Hearing on August 17, 2004. Motion by Jacobson, Seconded by Knight, to approve the attached resolution. Motion carried unanimously, (Res, R004-04) OTHER BUSINESS There was none. Motion by Orttel, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjoumed at 7:12 p,m. Respectfully submitted, Susan Osbeck, Recording Secretary o G) FROM: 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,C1.ANDOVER,MN,US EDA President and Board ~ Jim Dickinson, Executive Director Will Neumeister, Director of Com uni Development ~ TO: SUBJECT: Discuss Proposed Tax Increment Finance District l-4/Approve Resolution Modifying Development District No, I and Tax Increment Financing Plan for TIF District 1-4- Planning/Finance DATE: August 17,2004 INTRODUCTION Staff held a meeting with the property owners in the area known as Hughs Industrial Park on June 22, 2004. Five property owners were present representing nine of the properties. Staff indicated that the process to set up the District must start over because of the lack of a quorum at a Council meeting in June, ,\ This then became an opportunity to make sure we have discussed with all potential property owners in "J the area what this opportunity is and whether they would be interested in being included in the proposed TIF District, In order to assist in qualifying parcels that will be included in the potential new district there would need to be a visual inspection and report on the properties in the area to determine whether the conditions present will qualify the property for inclusion in the tax increment district (i.e. site coverage, building conditions, etc,), With the assistance of staff from Ehlers Associates, inspections were conducted on nearly all the buildings in the area. DISCUSSION Staff has also been working with Ehlers Associates, to complete the necessary paperwork and bring this item before the City Council on August 17, 2004 to establish the new Tax Increment Financing District in the area of 161~ and Round Lake Boulevard, The prevalent comment at the June 22, 2004 meeting was that the properties could greatly benefit from being included in the TIF District and that we should continue in our efforts to expand the boundaries of the original area that was to be included, ACTION REOUESTED The EDA is requested to review the materials establishing the proposed TIF District 1-4, Consider adopting Resolution authorizing the establishment of the proposed TIF District 1-4 and authorizing the proposed modifications to Development District No, I. Attachments . Resolution , ) . Summary and Full Copy of Tax Increment Financing Plan (for TIF District 1-4) and '- Modifications to Development District No, I . Minutes of June 29, 2004 EDA Meeting ~) ANDOVERECONONnCDEVELOPMENTAUTHOIDTY CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO, RESOLUTION ADOPTING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND ESTABLISHING TAX INCREMENT FINANCING DISTRICT NO. 1-4 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR. WHEREAS, it has been proposed by the Board of Commissioners (the "Board") of the Andover Economic Development Authority (the "EDA") and the City of Andover (the "City") that the EDA adopt a Modification to the Development Program for Development District No, 1 (the "Development Program Modification") and establish Tax Increment Financing District No, 1-4 and adopt a Tax Increment Financing Plan (the "TIF Plan") therefor (the Development Program Modification and the TIF Plan are referred to collectively herein as the "Program Modification and TIF Plan"), all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469,090 to 469.1082, and Sections 469,174 to 469.1799, inclusive, as amended (the "Act"), all as reflected in the Program Modification and TIF Plan and presented for the Board's consideration; and , " V WHEREAS, the EDA has investigated the facts relating to the Program Modification and TIF Plan and has caused the Program Modification and TIF Plan to be prepared; and WHEREAS, the EDA has performed all actions required by law to be performed prior to the adoption of the Program Modification and TIF Plan, The EDA has also requested the City Planning Commission to provide for review of and written comment on Program Modification and TIF Pian and that the Council schedule a public hearing on the Program Modification and TIF Plan upon published notice as required by law. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: 1. The EDA hereby finds that Tax Increment Financing District No, 1-4 is in the public interest and is a "redevelopment district" under Minnesota Statutes, Section 469,174, Subd, 10 (a)(I), and finds that the adoption of the proposed Program Modification and TIF Plan conform in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State of Minnesota which is already built up and that the adoption of the proposed Program Modification and TIF Plan will help provide employment opportunities in the State and in the preservation and enhancement ofthe tax base of the City and the State because it will discourage commerce and industry from moving their operations to another state or municipality and thereby serves a public purpose. 2, The EOA further finds that the Program Modification and TIF Plan will afford maximum opportunity, consistent with the sound needs for the City as a whole, for the development or redevelopment of the project area by private enterprise in that the intent is to provide only that public assistance necessary to make the private developments financially feasible, , , ,-_./ 3, Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Program Modification and TIF Plan, as presented to the EDA on this date, are hereby approved, established and adopted and shall be placed on file in the office of the City Administrator, -2-- , \ V , \ <) r , ~-) 4, Upon approval of the Program Modification and TIF Plan by the City Council, the staff, the EDA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Program Modification and TIF Plan and for this purpose to negotiate, draft, prepare and present to this Board for its consideration all further plans, resolutions, documents and contracts necessary for this purpose, Approval of the Program Modification and TIF Plan does not constitute approval of any project or a Development Agreement with any developer. 5, Upon approval of the Program Modification and TIF Plan by the City Council, the Interim City Administrator is authorized and directed to forward a copy of the Program Modification and TIF Plan to the Minnesota Department of Revenue pursuant to Minnesota Statutes 469.175, Subd, 4a. 6, The Interim City Administrator is authorized and directed to forward a copy of the Program Modification and TIF Plan to the Anoka County Auditor and request that the Auditor certify the original tax capacity of the District as described in the Program Modification and TIF Plan, all in accordance with Minnesota Statutes 469.177, Approved by the Andover Economic Development Authority this 17''' day of August, 2004. Chair A TrEST: Secretary -3- / ' '---' Ehlers & Associates, Inc. Tax Increment Financing District Overview e EHLERS .. AiliOC.AlES IHe City of Andover - Tax Increment Financing District No. 1-4 The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for Tax Increment Financing District No. 1-4, More detailed information on each of these topics can be found in the complete TlF Plan, Maximum duration: Establishment of Tax Increment Financing District No, 1-4 and the adoption of a Tax Increment Financing Plan. Adoption of a Development Program Modification for Development District No, L The Modification includes the project activities anticipated in Tax Increment Financing District No, 1-4. A redevelopment district 16-32-24-23-000 I ] 6-32-24-23-00 13 16-32-24-23-0020 16-32-24-23-0002 16-32-24-23-0014 16-32-24-23-0021 16-32-24-23-0005 16-32-24-23-0015 16-32-24-23-0022 16-32-24-23-0009 ]6-32-24-23-0016 16-32-24-23-0023 ]6-32-24-23-0010 16-32-24-23-0017 16-32-24-23-0024 16-32-24-23-0011 16-32-24-23-0018 16-32-24-24-0003 16-32-24-23-0012 16-32-24-23-0019 ]6-32-24-24-0004 The District is being created to facilitate the demolition of several substandard buildings, New buildings will be constructed that will serve primarily as office and warehouse facilities for service businesses, within the City. The project is expected to be in two phases. Proposed for Phase I is a 14,000 s,f, building, with an estimated value of $725,000, The proposal for Phase II includes a 6,000 s,f. addition to the Phase I building ,to be built at a later date, Deve]opment is likely to begin in the Spring/Summer of 2005. The balance of the properties in the proposed district are aging and have expressed interest in a variety of building and site improvements to expand, upgrade facades or make site improvements to their properties to bring them up to current building and fire codes, The duration of TIF District No, 1-4 will be 25 years from the date of receipt of the first increment (26 years of increment), The date of receipt of the first tax increment will be approximately 2007, Thus, it is estimated that District No. 1-4, including any modifications of the TlF Plan for subsequent phases or other changes, would terminate after 2032, or when the TIF Plan is satisfied, Proposed action: Development District: Type ofTIF District: Parcel Numbers: . , ,~ Proposed Deve]opment: Estimated annual tax increment: $300,263 per year / ' '---' -f- / ' ,~ T1F District Overview Proposed uses: The TIF Plan contains the following budget: Land/Building Acquisition uouuouuo,......'u.u'u'uouuo,..' $1,000,000 Site Improvements/Preparation 'uo........'uuouuuuou..,.... $1,200,000 Public Utilities uo.uouuuo,.....uu.uu.uuo....,.....uuuuououuuo $300,000 Parking Facilities uuuo,....uuuuuuuuou,.......uuuuuouo'uo $ I ,000,000 Streets and Sidewalks .uuouuo...,....uuu'uuu'uuuuu...uu $1,000,000 Other Public Improvements .uouuuo..........uououououuu.. $1,000,000 Interest ....uu'uu.uuououou..uuuuouuo.uo,......uouu.uuuouuo $ I ,536,840 Administrative Costs (up to 10%) uouuuo,..u.........uuu.uo, $780.000 TOTAL PROJECT COSTSuuououo............u'uouuuu.. $7,816.840 " Interfund Loan / Revolving Loan Requirement: See Subsection 2-10, page 2-6 of the TIF Plan for the full budget authorization, Additional uses of funds are authorized which include inter-fund loans and transfers and bonded indebtedness, Financing will be primarily through a pay-as-you-go note, Up to 10% of annual increment, if costs are justified, The EDA chooses to calculate fiscal disparities by clause a (outside the District) Coverage Test: greater than 15% of s,f, improved Substandard Test: not in compliance with current building code AND will cost greater than 15% of constructing a new similar structure, If the City wants to pay for administrative expenditures from a tax increment fund, it is recommended that a resolution authorizing a loan from another fund be passed PRIOR to the issuance of the check, Form of financing: Administrative fee: Fiscal Disparities Election: Qualifications , '-- The reasons and facts supporting the findings for the adoption of the TlF Plan for TIF District No. 1-4, as required pursuant to MS" Section 469,175, Subd, 3, are included in Exhibit A of the resolution, / Page 2 '- -s-- r ' '- TlF District Overview BOUNDARY MAPS OF DEVELOPMENT DISTRICT NO, I AND TAX INCREMENT FINANCING DISTRICT NO, 1-4 '-, ; Page 3 ,~ -~- ~NDbVE~ Tax Increment Financing District No. 1-4 Development District No.1 City of Andover Anoka County, Minnesota .' " '-~ ,.,, u ::: ~ l))-I~ / :='\ ~ -.~\~ ./ ~ ~ ~1IfI:~ "- ~~F~ 58~ ~~ rW. 16~ ~ -5~> I f-: 'L I4>-IV . ~~ . ~~ m I~ ~mAve ,I ~ I\-\CI~ J-I \~ " \1 I -=r 1 L--r o..:r:U c = 1 blil., I-- 1\ t I ~ - ~ ~ v Ifi~ If- Q c :; !::< en 13' ::I: TI F District No. 1-4 , (Subject Site) ~. L ~- ~r b\ - In :::;io) 1B T W l4E == - .~ ~ Jii IIIIJII uu ~ VE,II,f' IJi . '- L: = 'TIT; , ./ Development District No.1 o~ IT ~v /~ ~ II ~~ I ili-T'rl' ..' ~ ~ \ l [ - [l .. IL . '1 , () f-L " ~ ;1;1.. en ~ E ~~, ~L, , - , I /~ .. '\, .----- I I I Development District No. 1 I I ----- ~ /' \ \. / .......... ...... .. .., .." ......... .;.:.:....:.:.:.. =:=:::=:=:::::::: Tax Increment Financing District No. 1-4 (Subject Site) -7- 9\NDb,:f[~ TIF District 1-4 ( > "'~j Economic Development Authority "yc ,,) ... a f- " d /~ Jr:; LL \~ \ r .... \.J '\, \._-j --- - r 164TH LN ~'--- > /~ ~ l~ /jJ - 1 " "." ""..# .# ...... #." a . #. #.".. .' ".' :~. #.' ". ".". #. ".".". :..". ".;". .". ".;..". .;. -.;.;.; .:. .; ::. .; ;. ;.;.;. ;.;.;.; ..;.;.;...;. .:.::.:.:. "",, ......... .;. . "" "" ...... ........ ...... ........... ..".. l:............~:. ".." :" ".. Or:" ............ ........... ..:.........:.... ......:...."..".. ...............................:.~.................... ". ......; "",, ,," "" ,," "" ...... ~".J;-.; .......... .......... b;{ :;/r{fi{:!/i;} i)fit irit ~................................................ :f;j)0ii{;j~iJ![Jfifjll 10'<:T "" I r "\F '---j ~\ 1\ I~ a ~ ,"" I~ / 0/ 0:: -,5'- ~,} ~ / rI I -<?- o As of July 16, 2004 Draft for Fiscal Implications MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 and the TAX INCREMENT FINANCING PLAN for the establishment of TAX INCREMENT FINANCING DISTRICT NO. 1-4 (a redevelopment district) within o DEVELOPMENT DISTRICT NO.1 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA Public Hearing: August 17,2004 Adopted: This document is in draft form for distribution to the County and the School District, The TlF Plan contains theestimatedfiscal and economic implications of the proposed TIF District, The City and the EDA may make minor changes to this draft document prior to the public hearing, o . EHLERS Prepared by: EHLERS & ASSOCIATES, INC, 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www,ehlers-inc,com & ASS 0 C I ATE SIN C -7- o o TABLE OF CONTENTS (for reference purposes only) SECTION 1- MODIFICA TION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1. , . , , , . . . , . , . , . , . . . ' . , , . . . . . . . . . . , .. 1-1 Foreword, . . . . , . . , , . . , . , , , . , , , , , , , . ' . . , . . . . . . . . . , . . . . . . , . . . . , . , . . . . . .. 1-1 SECTION 11- TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING District NO. 1-4 , , , , . . , , , . , , , , , , , , . . , . . , . , , 2-1 Subsection 2-1, Foreword,...,...".""""""..""""........."" 2-1 Subsection 2-2. Statutory Authority ..,.......,..",.."..""...,......... 2-1 Subsection 2-3. Statement of Objectives. . . , . . , . . , , , . . , , , . , , , , . . . , . . . . . . . . . 2-1 Subsection 2-4. Development Program Overview ..,.,...,...."..."........ 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired ,2-2 Subsection 2-6, Classification of the District "",."""""""..",...,." 2-2 Subsection 2-7. Duration of the District .,.....,.."..."....",..".,...... 2-4 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ..,.....'."... 2-4 Subsection 2-9, Sources of Revenue/Bonded Indebtedness ,...", . . . , , . . , . . . .. 2-5 Subsection 2-10. Uses of Funds ,.",...........,.,...',...."..."......, 2-6 Subsection 2-11. State Tax Increment Financing Aid (Local Contribution) . . . , , . , . . . . 2-7 Subsection 2-12, Fiscal Disparities Election, , , , , , , , . , , , , , , , , , , , , , ' , , , , , , , . . . . 2-7 Subsection 2-13, Business Subsidies ...,.,.."."".."..,.",..""".". 2-7 Subsection 2-14. County Road Costs ,...,..",."".""...",.""""". 2-8 Subsection 2-15, Estimated Impact on Other Taxing Jurisdictions, . . . . . . . . . , , . , , " 2-9 Subsection 2-16. Supporting Documentation. . , , , . , , , , . , , , , . . , , , , . , , , , , , , , . " 2-9 Subsection 2-17. Definition of Tax Increment Revenues, ' , , , , ' , , ' . . , ' , , , ' , , , , " 2-9 Subsection 2-18, Modifications to the District. , , , , , , , , , , , , , . , , ' , , , ' , , , , , , , , " 2-10 Subsection 2-19. Administrative Expenses ".""..,...."....."....,."" 2-10 Subsection 2-20. Limitation of Increment. . . . . . , . . , . , , . . . , , . . . . . , , . . . . , . . . " 2-11 Subsection 2-21. Use of Tax Increment.",."""".."".""""",.".. 2-12 Subsection 2-22, Excess Increments , . . . , . . . , , , . , , , , . . , , , . . . . . , , , . . . , . . . .. 2-13 Subsection 2-23, Requirements for Agreements with the Developer, , , , . , . . , . , . .. 2-13 Subsection 2-24, Assessment Agreements, . . . , . . , . , . . . , , , . . . . . , , , . . . , . . . .. 2-13 Subsection 2-25, Administration of the District. , , , . , . , . . , , , , . . . . . , , , . . . , . . . .. 2-13 Subsection 2-26, Annual Disclosure Requirements .,.,.."",....",......... 2-14 Subsection 2-27. Reasonable Expectations, . . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . 2-14 Subsection 2-28. Other Limitations on the Use of Tax Increment ,."""."..... 2-14 Subsection 2-29, Summary,.........."..",.",....."....",......... 2-15 APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E 0 APPENDIX F APPENDIX G PROJECT DESCRIPTION ..'..."..,.,.......,.....,......... A-1 MAPS OF DEVELOPMENT DISTRICT NO.1 AND THE DISTRICT. . . . . B-1 DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT, , C-1 ESTIMATED CASH FLOW FOR THE DISTRICT ..""...",.,,'... D-1 MINNESOTA BUSINESS ASSISTANCE FORM ...,."...",.",.,. E-1 REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT ..,."", F-1 BUT/FOR QUALIFICATIONS, . . " . . . ,. , . . . . . . .... . . . '" , , , " " G-1 -~- o o o SECTION 1- MODIFICA TION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1 Foreword The following text represents a Modification to the Development Program for Development District No. I. This modification represents a continuation ofthe goals and objectives set forth in the Development Program for Development District No. I. Generally, the substantive changes include the establishment of Tax Increment Financing District No, 1-4, For further information, a review of the Development Program for Development District No, 1, adopted September 2, 1986, is recommended, It is available from the City Administrator at the City of Andover. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Development District No, I, Andover Economic Development Authority Modification to the Development Program for Development District No.1 1-1 -1;- o o o SECTION 11- TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING District NO. 1-4 Subsection 2-1. Foreword The Andover Economic Development Authority (the "EDA"), the City of Andover (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No, 1-4 ("the District"), a redevelopment tax increment financing district, located in Development District No, I, Subsection 2-2. Statutory Authority Within the City, there exists areas where public involvement is necessary to cause development or redevelopment to OCCUL To this end, the EDA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S, "), Sections 469,090 to 469,1082, inclusive, as amended, and M.s., Sections 469,174 to 469,1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1-4. Other relevant information is contained in the Modification to the Development Program for Development District No, 1, Subsection 2-3. Statement of Objectives The District currently consists of twenty one parcels ofland and adjacent and internal rights-of-way. The District is being created to facilitate the renovation and demolition of substandard buildings within the district, New buildings will be constructed where the buildings will be demolished. Contracts for this have not been entered into at the time of preparation of this TIF Plan, but development is likely to begin in the Spring/Summer of 2005. This TIF Plan is expected to achieve many of the objectives outlined in the Development Program for Development District No, I. The activities contemplated in the Modification to the Development Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities, These activities are anticipated to occur over the life of Development District No, I and the District. Subsection 2-4. Development Program Overview 1. Property to be Acquired - Selected property located within the District may be acquired by the EDA or City and is further described in this TIF Plan, 2. Relocation - Relocation services, to the extent required by law, are available pursuant to M.S" Chapter 117 and other relevant state and federal laws, 3, Upon approval of a developer's plan relating to the project and completion ofthe necessary legal requirements, the EDA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer. 4, The EDA or City may perform or provide for some or all necessary acqulSltlOn, construction, relocation, demolition, and required utilities and public streets work within the District. Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-1 -IZ-- Subsection 2-5. Description of Property in the District and Property To Be Acquired r' .....J The District encompasses all property and adjacent rights-of-way identified by the parcels listed below, See the map in Appendix B for further information on the location of the District. 16-32-24-23-0001 16-32-24-23 -0002 16-32-24-23-0005 16-32-24-23-0009 16-32-24-23-00 I 0 16-32-24-23-0011 16-32-24-23-0012 Parcel Numbers 16-32-24-23-0013 16-32-24-23-0014 16-32-24-23-0015 16-32-24-23-0016 16-32-24-23-0017 16-32-24-23-0018 16-32-24-23-0019 16-32-24-23-0020 16-32-24-23-0021 16-32-24-23-0022 16-32-24-23-0023 16-32-24-23-0024 16-32-24-24-0003 16-32-24-24-0004 The EDA or City may acquire any parcel within the District including interior and adjacent street rights of way. Any properties identified for acquisition will be acquired by the EDA or City only in order to accomplish one or more ofthe following: storm sewer improvements; provide land for needed public streets, utilities and facilities; carry out land acquisition, site improvements, clearance and/or development to accomplish the uses and objectives set forth in this plan, The EDA or City may acquire property by gift, dedication, condemnation or direct purchase from willing sellers in order to achieve the objectives of this TIF Plan, Such acquisitions will be undertaken only when there is assurance of funding to finance the acquisition and related costs, Subsection 2-6. Classification of the District 0) The EDA and City, in determining the need to create a tax increment financing district in accordance with M,S., Sections 469,174 to 469,1799, as amended, inclusive, find that the District, to be established, is a redevelopment district pursuant to M.s., Section 469,174, Subd, 10(a)(l) as defined below: (a) "Redevelopment district" means a type of tax incrementfinancingdistrict consisting of a project, or portions of a project, within which the authority finds by resolution that one or more of the following conditions, reasonably distributed throughout the district, exists: (1) parcels consisting of70 percent of the area in the district are occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance; (2) The property consists of va cant, unused, underused, inappropriately used, or infrequently used rail yards, rail storage facilities or excessive or vacated railroad rights-ol-way; (3) tank facilities, or property whose immediately previous use was for tank facilities, as defined in Section 115C, Subd. 15, if the tankfacility: (i) have or had a capacity of more than one million gallons; (ii) are located adjacent to rail facilities; or (iii) have been removed, or are unused, underused, inappropriately used or infrequently used; or f~,\ "-.J (4) a qualifYing disaster area, as defined in Subd, lOb, Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-2 -/$- o (b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance, (c) A building is not structurally substandard ifit is in compliance with the building code applicable to new buildings or could be modified to satisfY the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs or other similar reliable evidence, The municipality may not make such a determination without an interior inspection of the property, but need not have an independent, expert appraisal prepared of the cost of repair and rehabilitation of the building, An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permissionfrom the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard, (d) A parcel is deemed to be occupied by a structurally substandard buildingfor purposes of the finding under paragraph (a) if all of the following conditions are met: o (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district with the county auditor; (2) the substandard building was demolished or removed by the authority or the demolition or removal was financed by the authority or was done by a developer under a development agreement with the authority; (3) the authority found by resolution before the demolition or removal that the parcel was occupied by a structurally substandard building and that after demolition and clearance the authority intended to include the parcel within a district; and (4) upon filing the requestfor certification of the tax capacity of the parcel as part of a district, the authority notifies the county auditor that the original tax capacity of the parcel must be adjusted as provided by J 469,177, subdivision 1, paragraph (j), (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures unless 15 percent of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots or other similar structures, (j) For districts consisting of two or more noncontiguous areas, each area must qualify as a redevelopment district under paragraph (a) to be included in the district, and the entire area of the district must satisfY paragraph (a), In meeting the statutory criteria the EDA and City rely on the following facts and fmdings: o o The District is a redevelopment district consisting of 2 I parcels, o An inventory shows that parcels consisting of more than 70 percent of the area in the District are Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2,3 -/<1- o occupied by buildings, streets, utilities, paved or gravel parking lots or other similar structures, o An inspection of the buildings located within the District finds that more than 50 percent of the buildings are structurally substandard as defined in the TIF Act. (See Appendix F), Pursuant to M.S469,176 Subd, 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S 273,111 or 273,112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration of the District Pursuant to M,S, Section 469,175, Subd, 1, and Section 469,176, Subd, 1, the duration of the District must be indicated within the TIF Plan. Pursuant to M.S" Section 469,176, Subd, 1 b, the duration of the District will be 25 years after receipt of the first increment by the EDA or City (a total of26 years of tax increment), The date of receipt by the City of the first tax increment is expected to be Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2032, or when the TIF Plan is satisfied, If increment is received in 2006, the term of the District will be 2031, The EDA or City reserves the right to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Valuellncrement and Notification of Prior Planned Improvements PursuanttoM.S, Section 469,174, Subd, 7 and M,S, Section 469,177, Subd. 1, the Original NetTax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2004 for taxes payable 2005. o Pursuant to M.S" Section 469,177, Subds, 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2007 the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2, Reduction or enlargement of the geographic boundaries of the district; 3, Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5, Change in state law governing class rates; or 6. Change in previously issued building permits, In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the EDA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2005, assuming the request for certification is made before June 30, 2005. The ONTC and the Original Local Tax Rate for the District appear in the table on the following page, Pursuant to M.S, Section 469,174 Subd. 4 and M.S, Section 469,177, Subd, 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Development District No, I, upon completion of the project, will annually approximate tax increment revenues as shown in the table on the next page. The EDA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2007, The Project Tax Capacity (pTC) listed is an estimate of values when the project is completed, o Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-4 -;>- 0 Project Estimated Tax Capacity upon Completion (pTC) $400,000 Original Estimated Net Tax Capacity (ONTC) $71,312 Estimated Captured Tax Capacity (CTC) $328,688 Original Local Tax Rate 91.352% Pay 2004 Estimated Annual Tax Increment(CTC x Local Tax Rate) $300,263 Percent Retained by the EDA 100% Pursuant to M.S" Section 469,177, Subd, 4, the EDA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M,S., Section 469,175, Subd, 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M,S., Section 469,175, Subd. 3, The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued, The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonded Indebtedness o Public improvement costs, acquisition, demolition, utilities, parking facilities, streets and sidewalks, and site preparation costs and other costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments, The EDA or City reserves the right to use other sources of revenue legally ap- plicable to the EDA or City and the TIF Plan, including, but not limited to, special assessments, general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other contributions from the developer and investment income, to pay for the estimated public costs. The EDA or City reserves the right to incur bonded indebtedness or other indebtedness as a result ofthe TIF Plan, As presently proposed, the project will be financed by a pay-as-you-go note, Additional indebtedness may be required to finance other authorized activities, The total principal amount of bonded indebtedness, including a general obligation (GO) TIF bond, or other indebtedness related to the use of tax increment financing will not exceed $6,050,000 without a modification to the TIF Plan pursuant to applicable statutory requirements, It is estimated that $6,050,000 in interfund loans is authorized to be financed with tax increment revenues. It is estimated that $6,050,000 in transfers is authorized to be financed with tax increment revenues, It is estimated that $6,050,000 in indebtedness debt proceeds is authorized to be financed with tax increment revenues. This provision does not obligate the EDA or City to incur debt. The EDA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City, The EDA or City may also fmance the activities to be undertaken pursuant to the TIF Plan through loans from funds of the EDA or City or to reimburse the developer on a "pay-as-you-go" basis for eligible costs paid for by a developer- The estimated sources of funds for the District are contained in the table on the following page, o Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-5 -16- 0 SOURCES OF FUNDS TOTAL Tax Increment $7,806,840 Revenue $10,000 PROJECT REVENUES $7,816,840 Interfund Loans $6,050,000 Transfers $6,050,000 Bond Proceeds $6,050,000 Subsection 2.10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the demolition of several substandard buildings, New buildings will be constructed that will serve primarily as office and warehouse facilities for service businesses, within the City, The EDA and City have determined that it will be necessary to provide assistance to the project for certain costs. The EDA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIP Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses, The estimate of public costs and uses of funds associated with the District is outlined in the following table, USES OF FUNDS TOTAL 0 Land/Building Acquisition $1,000,000 Site Improvements/Preparation $1,200,000 Public Utilities $300,000 Parking Facilities $1,000,000 Streets and Sidewalks $1,000,000 Other Public Improvements $1,000,000 Interest $1,536,840 Administrative Costs (up to 10%) $780,000 PROJECT COSTS TOTAL $7,816,840 Interfund Loans $6,050,000 Transfers $6,050,000 Bond Principal $6,050,000 The above budget is organized according to the Office of State Auditor (OSA) reporting forms, It is estimated that the cost of improvements, including administrative expenses which will be paid or financed with tax increments, will equal $7,816,840 as is presented in the budget above. o Estimated costs associated with the District are subject to change among categories without a modification to this TIP Plan, The cost of all activities to be considered for tax increment financing will not exceed, Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-6 -17- o o o without formal modification, the budget above pursuant to the applicable statutory requirements, Pursuant to MS, Section 469,1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District will be spent on activities related to development or redevelopment outside ofthe District but within the boundaries of Development District No, I, (including administrative costs, which are considered to be spent outside ofthe District) subject to the limitations as described in this TIP Plan. Subsection 2-11. State Tax Increment Financing Aid (Local Contribution) M,S" Section 273,1399 (LGNHACA penalty) was repealed by the 2001 Legislature and does not apply to the District. Subsection 2-12. Fiscal Disparities Election Pursuant toM,S" Section 469,177, Subd, 3, the EDA or City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M,S, Section 469,177, Subd, 3, clause a, (outside the District) are followed, the following method of computation shall apply: (1) The original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured net tax capacity and no tax increment determination, Where the original net tax capacity is less than the current net tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity, This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority, (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates, The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts, The tax generated by the extension of the lesser of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority, The EDA will choose to calculate fiscal disparities by clause a (outside the District), According to MS, Section 469,177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b), Subsection 2-13. Business Subsidies Pursuant to MS, Sections 116J,993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (I) A business subsidy ofless than $25,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-7 -10- o such as a line of business, size, location, or similar general criteria; (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.s. Section 116J,552, Subd, 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.s. Section 469,174, Subd, 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M,S, Section 469,174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principally technical nature. (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $75,000 or less; and (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration. o The EDA will comply withM.S" Section 116J,993 to 116J.994 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions, Subsection 2-14. County Road Costs Pursuant toM.S" Section 469,175, Subd, la, the county board may require the EDA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgement of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan, r", V Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-8 -11- Subsection 2-15. Estimated Impact on Other Taxing Jurisdictions r' \, ) The estimated impact on other taxingjurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the EDA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0, The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE 2003/2004 Estimated Captured Total Net Tax Capacity (CTC) Percent of CTC Tax Caoacitv Doon Comoletion to Entity Total Anoka County 200,134,542 328,688 0.1642% City of Andover 18,604,494 328,688 1.7667% Anoka-Hennepin ISD No, II 104,342,258 328,688 0.3150% IMPACT ON TAX RATES 2003/2004 Percent Potential Extension Rates of Total CTC Taxes Anoka County 0.352210 38.56% 328,688 115,767 C) City of Andover 0.316030 34.59% 328,688 103,875 Anoka-Hennepin ISD No, II 0,210500 23,04% 328,688 69,189 Other (Met, Rail, Radio) 0,034780 3,81% 328.688 11.432 Total 0,913520 100,00% 300,263 The estimates listed above display the captured tax capacity when all construction is completed, The tax rate used for calculations is the actual2003/Pay 2004 rate. The total net capacity for the entities listed above are based on actual Pay 2004 figures. The District will be certified under the actual2004/Pay 2005 rates, which were unavailable at the time this TIF Plan was prepared, Subsection 2-16. Supporting Documentation Pursuant to M,S, Section 469,175 Subd 1, clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth inMS, Section 469,175 Subd 3, clause (2) and the findings are required in the resolution approving the TIF district. Following is a list of reports and studies on file at the City that support the Authority's findings: . SEH report . TIP request from Developer and Property Owners Subsection 2-17. Definition of Tax Increment Revenues ( ') Pursuant to M,S., Section 469,174, Subd, 25, tax increment revenues derived from a tax increment financing ~ district include all of the following potential revenue sources: Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-9 -24- o I. Taxes paid by the captured nettax capacity, but excluding any excess taxes, as computed under MS., Section 469,177; 2, The proceeds from the sale or lease of property, tangible or intangible, purchased by the Authority with tax increments; 3, Principal and interest received on loans or other advances made by the Authority with tax increments; and 4. Interest or other investment earnings on or from tax increments, Subsection 2-18. Modifications to the District In accordance withMS., Section 469,175, Subd, 4, any: 1. Reduction or enlargement of the geographic area of Development District No, I or the District, if the reduction does not meet the requirements of MS., Section 469,175, Subd, 4(e); 2, Increase in amount of bonded indebtedness to be incurred; 3, A determination to capitalize interest on debt ifthat determination was not a part ofthe original TIF Plan, or to increase or decrease the amount of interest on the debt to be capitalized; 4, Increase in the portion of the captured net tax capacity to be retained by the EDA or City; 5, Increase in the estimate of the cost of the project, including administrative expenses, that will be paid or financed with tax increment from the District; or 6, Designation of additional property to be acquired by the EDA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan, o Pursuant to MS, Section 469,175 Subd, 4(f), the geographic area of the District may be reduced, but shall not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a redevelopment district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M,S" Section 469,174, Subd, 10, paragraph (a), clauses (I) to (5), must be documented in writing and retained, The requirements of this paragraph do not apply if (I) the only modification is elimination ofparcel(s) from Development District No, I or the District and (2) (A) the current net tax capacity of the parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the EDA agrees that, notwithstandingMS., Section 469,177, Subd, 1, the original nettax capacity will be reduced by no more than the current net tax capacity of the parcel(s) eliminated from the District. The EDA or City must notify the County Auditor of any modification that reduces or enlarges the geographic area of Development District No. I or the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-19. Administrative Expenses In accordance with M,S., Section 469,174, Subd, 14, administrative expenses means all expenditures of the EDA or City, other than: o I. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the project; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-10 -Z-I- o proj ect; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to MS., Section 469,178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3), For districts for which the request for certification were made before August I, 1979, or after June 30, 1982, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants, Pursuant to MS., Section 469,176, Subd, 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent ofthe total estimated tax increment expenditures authorized by the TIP Plan or the total tax increments, as defined by MS., Section 469,174, Subd, 25, clause (1), from the District, whichever is less. Pursuant to M,S" Section 469,176, Subd, 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District. The county may require payment ofthose expenses by February 15 of the year following the year the expenses were incurred, Pursuant to M,S., Section 469, 177, Subd, 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the EDA or City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of financial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing, This amount may be adjusted annually by the Commissioner of Revenue, o Subsection 2-20. Limitation of Increment Pursuant to MS" Section 469,176, Subd, la, no tax increment shall be paid to the EDA or City for the District after three (3) years from the date of certification of the Original Net Tax Capacity value of the taxable property in the District by the County Auditor unless within the three (3) year period: (I) Bonds have been issued in aid of the project containing the District pursuantto MS" Section 469,178, or any other law, except revenue bonds issued pursuant to M,S" Sections 469,152 to 469,165, or (2) The EDA or City has acquired property within the District, or (3) The EDA or City has constructed or caused to be constructed public improvements within the District. The bonds must be issued, or the EDA or City must acquire property or construct or cause public improvements to be constructed by approximately June, 2007 and report such actions to the County Auditor. The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. o Andover Economic Development Authority Tax: Increment Financing Plan for Tax Increment Financing District No. 1-4 2-11 -Z2-- Pursuant to M,S" Section 469,176, Subd, 6: o if, after four yearsfrom the date of certification of the original net tax capacity of the tax increment financing district pursuant to M,S., Section 469,177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner of the parcel in accordance with the tax increment financing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district, If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall certifY to the county auditor that the activity has commenced and the county auditor shall certifY the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax incrementfinancing district, The county auditor must enforce the provisions of this subdivision, The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district, The evidence for a parcel must be submitted by February 1 of the fifih year follOWing the year in which the parcel was certified as included in the district, For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street, o The EDA or City or a property owner must improve parcels within the District by approximately June, 2008 and report such actions to the County Auditor. Subsection 2.21. Use of Tax Increment The EDA or City hereby detennines that it will use lOa percent of the captured net tax capacity of taxable property located in the District for the following purposes: I. To pay the principal of and interest on bonds issued to finance a project; 2, To finance, or otherwise pay the cost of redevelopment of Development District No. I pursuant to the MS., Sections 469,090 to 469, J082; 3, To pay for project costs as identified in the budget set forth in the TIP Plan; 4. To finance, or otherwise pay for other purposes as provided in M,S" Section 469,176, Subd, 4; 5, To pay principal and interest on any loans, advances or other payments made to or on behalf of the EDA or City or for the benefit of Development District No. I by a developer; 6, To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIP Plan or pursuant to M,S" Chapter 462C. M,S" Sections 469,152 through 469,165, and/or MS" Sections 469,178; and 7, To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M,S" Chapter 462C, MS" Sections 469.152 through 469,165, and/or MS" Sections 469,178, These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by MS., Section 469.176, Subd, 4, o Tax increments generated in the District will be paid by Anoka County to the EDA for the Tax Increment Fund of said District. The EDA or City will pay to the developer(s) annually an amount not to exceed an Andover Economic Development Authority Tax Increment Financing Plan fOT Tax Increment Financing District No. 1-4 2-12 -'23- o amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration, Remaining increment funds will be used for EDA or City administration (up to 10 percent) and the costs of public improvement activities outside the District. Subsection 2-22. Excess Increments Excess increments, as defined in MS" Section 469,176. Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3, Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4, Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates, In addition, the EDA or City may, subject to the limitations set forth herein, choose to modifY the TIF Plan in order to finance additional public costs in Development District No.1 or the District. Subsection 2-23. Requirements for Agreements with the Developer o The EDA or City will review any proposal for private development to determine its conformance with the Development Program and with applicable municipal ordinances and codes, To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the EDA or City to demonstrate the conformance of the development with City plans and ordinances, The EDA or City may also use the Agreements to address other issues related to the development. Pursuant to M,S,. Section 469,176, Subd, 5, no more than 25 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the EDA or City as a result of acquisition with the proceeds of bonds issued pursuant to MS.. Section 469,178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of25 percent of the acreage, the EDA or City concluded an agreement for the development or redevelopment of the properly acquired and which provides recourse for the EDA or City should the development or redevelopment not be completed, Subsection 2-24. Assessment Agreements Pursuant to M,S" Section 469,177, Subd, 8, the EDA or City may enter into a written assessment agreement in recordable form with the developer of properly within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certifY the minimum market value agreement. Subsection 2-25. Administration of the District o Administration ofthe District will be handled by the City Administrator. Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-13 -2-'/ _ Subsection 2-26. Annual Disclosure Requirements o Pursuant to M.s., Section 469,175, Subd, 5, 6, and 6b the EDA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board, County Auditor and School Board on or before August I of each year. M.S" Section 469,175, Subd, 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S, Section 469,175 Subd, 5 and Subd, 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Subsection 2-27. Reasonable Expectations o As required by the TIP Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the District permitted by the TIP Plan, In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon EDA and City staff awareness of the feasibility of developing the project site, A comparative analysis of estimated market values both with and without establishment of the District and the use of tax increments has been performed as described above, Such analysis is included with the cashf10w in Appendix D, and indicates that the increase in estimated market value ofthe proposed development (less the indicated subtractions) exceeds the estimated market value of the site absent the establishment of the District and the use of tax increments, Subsection 2-28. Other Limitations on the Use of Tax Increment I, General Limitations, All revenue derived from tax increment shall be used in accordance with the TIP Plan. The revenues shall be used to finance, or otherwise pay the cost of redevelopment of Development District No, I pursuant to the M,S" Sections 469,090 /0 469,1082, Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure, 2, Pooling Limitations, At least 75 percent of tax increments from the District must be expended on activities in the District or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities within said district or to pay, or secure payment of, debt service on credit enhanced bonds, Not more than 25 percent of said tax increments may be expended, through a development fund or otherwise, on activities outside of the District except to pay, or secure payment of, debt service on credit enhanced bonds, For purposes of applying this restriction, all administrative expenses must be treated as if they were solely for activities outside ofthe District. o 3. Five Year Limitation on Commitment of Tax Increments. Tax increments derived from the District shall be deemed to have satisfied the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in M,S" Section 469,1763, Subd. 3, has been satisfied; and beginning with the sixth year following certification of the District, 75 percent of said tax increments that remain after expenditures Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-14 -2.> - o o o permitted under said five year rule must be used only to pay previously committed expenditures or credit enhanced bonds as more fully set forth in M.S" Section 469,1763, Subd, 5. 4, Redevelopment District. At least 90 percent of the revenues derived from tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation of redevelopment and renewal and renovation districts under M.S" Section 469,176 Subd, 4j. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of the land, the removal of hazardous substances or remediation necessary for development of the land, and installation of utilities, roads, sidewalks, and parking facilities for the site, The allocated administrative expenses of the EDA or City, including the cost of preparation of the development action response plan, may be included in the qualifYing costs, Subsection 2-29. Summary The EDA is establishing the District to preserve and enhance the tax base, redevelop substandard areas, and provide employment opportunities in the City, The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113, telephone (651) 697-8500. Andover Economic Development Authority Tax Increment Financing Plan for Tax Increment Financing District No. 1-4 2-15 -Z6- o o o APPENDIX A PROJECT DESCRIPTION There are over twenty separate properties included in the proposed District. Currently under consideration is a proposal to facilitate the demolition of several substandard buildings. New buildings will be constructed that will serve primarily as office and warehouse facilities for service businesses, within the City. The project is expected to be in two phases, Proposed for Phase I is a 14,000 s,f. building, with an estimated value of$725,000. The proposal for Phase II includes a 6,000 s,f, addition to the Phase I building ,to be built at a later date, Development is likely to begin in the Spring/Summer of2005, The balance ofthe properties in the proposed district are aging and have expressed interest in a variety of building and site improvements to expand, upgrade facades or make site improvements to their properties to bring them up to current building and fire codes, The EDA and City have determined that it will be necessary to provide assistance to the project for certain costs which include, but are not limited to demolition costs, site improvements, utility installation and parking facility costs, The EDA has studied the feasibility ofthe development or redevelopment of property in and around the District. To facilitate the establishment and development orredevelopment ofthe District, this TIF Plan authorizes the use of tax increment financing to reimburse for the cost of certain eligible expenses paid by the developer, APPENDIX A-I -Z-7- f' ,/ ~NDbVERt! Tax Increment Financing District No. 1-4 Development District No.1 City of Andover Anoka County, Minnesota r) <.. z TIF District '" No. 1-4 (Subject Site) .----- I I I Development District No.1 -<?- I I ----- o ...................... ......;........;. ;.:.:...:.:.:..:...; :..:.;....:.;.:.. Tax Increment Financing District No. 1-4 (Subject Site) -Z'I- 9\~1JOVE~ TIF District 1-4 o Economic Development Authority o ~~ r :------- ~ ~">. )- ~ ~ 164TH L '\ 'i U I- 14 (' '\ /:; . r )~ / P- L ) r I . . , . . . '. . . . . . . . . . . . . . ~ .......:.. .: "..; :: ".; :. :.:.;. :';';'. .;.:.:.::. .....:.... ....... .......... ..... ...... .......... .:.:...:-:- :.. ....:.: ...... .... ............... ....:.:..... .;.;-.:.: .:...:-..:..; ........................ ;....;..............:;:.;: ..:......:. .......... ..: :.::.:. .......... ......:... . . . ..... .................. .......... ...:.:-..:.: ....... ......... .- ...:.:.:-..:- .......... .. .. ........ ..:.........:.:.:.. .:.: ......... .......... .......... ., . ..:..............:.......:...... .......... ......... .... .. ............................. ...:..;.:;.; ....... ~... :.::.:.:.. ....... ............................. 1--- ......... ......... ]0.................. .. .......... .:....:.:. :.;...... :...... ..:... ....:.;....:.:.: .......... ..:.:..:.: ........; ...;. ;.;.: ..;.;. .;;. :.:.;.. ;.;. ..;.;.;;.;. ......... -.r- ..:.;.:.. ................................ ......... ......;... I .;.;.;.;; ;..: .:.; .;;.;.; ....; .:.; .;;. ;.;. ........... .......... .................... ....... ....;..... ......;.. .....;.:........ ............... ..;...... ..... '~T ,\I~ I ill If \- H l~ ~ I ~ ;:, / 2 .~ / o -<?- -3d - o o o APPENDIX C DESCRIPTION OF PROPERTY TO BE INCLUDED IN THE DISTRICT The District encompasses all property and adjacent rights-of-way identified by the parcels listed below, Parcel Numbers i Parcel Address i Legal Description i Parcel Owner ..........................................i...........................................j.....................................................................i.............................................._ 16-32-24-24-0003 i 2875 161" Ave i Unplatted i Renee Hogendorf ..........................................~..........................................-t.....................................................................~............................................... 16-32-24-23-0012 ! 3115 162"' Ln i Lot 4, Block I, Hughes Industrial i Emmerich Wood ! ! Park ! Products Inc. ......................................................................................~...................................................................................................................... 16-32-24-23-0009 i 3149 162"' Ln ! Lot I, Block I, Hughes Industrial! James Larson ! ! Park ! ..........................................~.................................................................................................................................................................. 16-32-24-23-0024 i 3138 162"' Ln i THE E 150 FT OF W 400 FT OF i Clarence and Barbara ! ! S 433 FT OF N 2184,99 FT OF ! Zuleger i i Wl/20FNWl/40FSECI6TWP i ! i 32 RGE 24, EX RD ! .....................................................................................-t..................................................................................................................... 16-32-24-23-0019& ! 16191 Round Lake! Lots I and 2, Block I, Westview ! A VR Inc, (0019) and 16-32-24-23-0018 ! Blvd, ! Industrial Park ! Rick Lindquist (0018) .....................................................................................-t..................................................................................................................... 16-32-24-23-0020 i 16125 Round Lake! Lot 3, Block I, Westview i AVRInc, ! Blvd, i Industrial Park ! .....................................................................................-t.....................................................................-t............................................... 16-32-24-23-0015 i 3075 162"' Ln i Lot 7, Block I, Hughes Industrial: James Larson ; ; Park i ........................................................................................................................................................................................................... 16-32-24-23-0014 : 3095 162"' Ln : Lot 6, Blockl, Hughes Industrial i James Larson : 'Park , ..........................................~..........................................~.....................................................................~............................................... 16-32-24-23-0010 ! 3139 162"' Ln ! Lot 2, Block I, Hughes Industrial! Cedar Siding Lumber, i ! Park ! Inc. ........................................................................................................................................................................................................... 16-32-24-23-0022 ! 3098 162"' Ln i THE S 354,02 FT OF THE N i Gilbertson Block ! i 2106,01 FT OF THE Wl/2 OF i Company i i THE NWl/4 LYG E OF THE wi i i 650 FTTHEREOF EX THE E 165 i _.........................................1..........................................1..~.............................................................1............................................... 16-32-24-24-0004 ! 2975 161" Ave ! WI/2 OF WI/2 OF SEl/4 OF! Richard and Mary ! ! NW1/4; EX RD ! Heyen ..........................................~..........................................~.....................................................................~............................................... 16-32-24-23-0002 i 3019161" Ave i THAT PART OF THE E 461 FT i Walter Johnson i i OF THE Wl/2 OF NWI/4 OF i i i SEC 16-32-24 LYING S OF THE i ! iN 2,106,01 FT; i ........................................................................................................................................................................................................... 16-32-24-23-0017 i 3021 162"' Ln i Lots 10 and II, Block I, Hughes ! D J Properties ! ! Industrial Park i -.......................................................................................................................................................................................................... 16-32-24-23-0013 i 3105 162"' Ln i Lot 5, Block I, Hughes Industrial! Alois Emmerich ; iPark ; .....................................................................................-t..................................................................................................................... 16-32-24-23-0011 ! 3125 162"' Ln ! Lot 3, Block I, Hughes Industrial i Alois and Bruce ! ! Park ! Emmerich "16~32:24~23'~o'o2'3''''T3i18..162~di~....'........rTli:'E''E'2'50..FT..OF\\T65'O'IT'OF..'..j~li~;;;;~.z~hi~uo............ i is 433 FT OF N 2184.99 FT OF i i Wl/2 OF NWl/4 OF SEC 16 .............uo..,...."".."....".....J.,..""........""...........".........l.:..~,~~,~:,~,~.....UO..UO,......."........UO,_....."....,...,..."..,..,,,..,,..uo...,,... APPENDIX C-I -s/- o o o "16:3'2~24~23':ii'oii'5""T3'i'6ii"i.62;d'i;:''''''''''''''TijNiLAriED'GROW'TWP'lliETF...'M...'M~~k~ii~g....&., : : W 250 FT OF THE S 233 FT OF : Leasing, Inc, i i THEN 1984.99 FTOF THEWl/2 ! ! ! OF NWl/4 OF SEC 16-32-24 i i i ANOKA CNTY, MN : "16:3'2~24~23':ii'oiiT""r3'i'2'j"16.i';i"A~~'''''''''''1''lj'N'ili'A'T'T''Eii'''c'iT'Y'''O'F''1''J~~~ph';;':''d'R;bK~~;i'' iANDOVER THAT PART OF! : THE SWI/4 OF NWl/4 OF SEC i ! 16-32-24 DESC AS FOL-COM i i ON THE SE CORNER OF THE! ! SWl/40FNWl/40FSEC 16-32- i i 24-TH WLY ON S LINE OF: i SAID 1/4 A DIST OF 461 FT TO i . : THE ACTUAL POINT 0 i ..........................................~..........................................~....................................................u...............~............................................... 16-32-24-23-0016 i 3055 162"' Ln : Lots 8 and 9, Block I, Hughes i James andKari Larson : : Industrial Park i .......................................-..~..........................................~...............................................................n....~............................................... 16-32-24-23-0021 : NO ADDRESS i Lots 10 and II, Block I, Hughes: D J Properties : i Industrial Park : APPENDIX C-2 -J2-- . I ~A~t~I~E~'~ o Round lake Blvd between 161st Ave and 162nd lane City of Andover o PID 21 Parcels - See List Totals I District District # Inflation Rate - Every Year Pay-As-You-Go Interest Rate: Note Issued Date (Present Value Date): Local Tax Rate - Maximum (51011 L) Year District was certified Assumes First Tax Increment For District Years of Tax Increment Assumes Last Year of Tax Increment Fiscal Disparities Ratio Fiscal Disparities Metro Wide Tax Rate Local Tax Rate - Current State Wide Property Tax Rate (Used for total taxes) T.I.F.CASH FLOW ASSUMPTIONS Redevelopment 1-4 0.0000% 5.7500% 01-Aug-04 91.352% Pay 2004 Pay 2004 2006 26 2032 0.321645 Pay 2004 137.107% Pay 2004 91.352% Pay 2004 Market Value Tax Rate (used for total taxes) Commercial Industrial Class Rate First 150,000 Over 150,000 ~ [ '" BASE VALUE INFORMATIoN Land Mkt Value 1,925,000 Building Mkt Value 2,304,720 Total Mkt Value 4,229,720 1,925,000 2,304,720 4,229,720 * Reflects base value at final use classification qedeveloped Properties TOTAL 7/16/2004 54.1090% Pay 2004 0.14343% Pay 2004 1,5%-2,0% Pay 2003 1,50% 2,00% I Class Rate 1,5%/2% Original Tax Date Capacity" Payable 71,312 2004 71,312 PROJECTlNFORMATION ,. ~. </l,: ,;,: '::i'~, " :?',',: Total Taxes Market Value 20,000,000 Class Rate 2,00% o 20,000,000 Estimates Only -3<!- _ Tax Capacity 400,000 Year Constr 2004 2004 2004 400,000 Pay Year 2006 2006 2006 Fiscallmplicationruns.xls o e EHLERS a. ",SSOCIATES l!'Ie City of Andover Tax Increment Financing District No, 1-4 ",'."".,. ',,'.'. ,',' ,BASEVAI.UEINFORMATlON .,...... "... "'..",."....... .,.".... ,'.' Original land Building Total Class Tax Date PID Mkt Value Mkt Value Mkt Value Class Rate CaDacitv Payable R 16-32-24-23-000 1 147,000 135,900 282,900 C/I Pref 1.5%/2% 4,908 2004 R16-32-24-23-0002 206,400 189,200 395,600 CII Pref 1.5%/2% 7,162 2004 R16-32-24-23-0005 74,500 7,200 81,700 CII Pref 1,5%/2% 1,226 2004 R 16-32-24-23-0009 78,300 190,400 268,700 CII Pref 1,5%/2% 4,624 2004 R 16-32-24-23-001 0 96,700 168,000 264,700 CII Pref 1,5%/2% 4,544 2004 R16-32-24-23-0011 59,800 59,800 CII Pref 1,5%12% 897 2004 R16-32-24-23-0012 64,900 267,200 332,100 CII Pref 1,5%/2% 5,892 2004 R16-32-24-23-0013 61,900 61,900 CII Pref 1.5%/2% 929 2004 R16-32-24-23-0014 65,000 256,220 321 ,220 C/I Pref 1,5%12% 5,674 2004 R16-32-24-23-0015 65,000 170,700 235,700 CII Pref 1,5%/2% 3,964 2004 R 16-32-24-23-00 16 85,300 96,200 181,500 CII Pref 1,5%/2% 2,880 2004 R16-32-24-23-0017 87,400 126,200 213,600 CII Pref 1,5%12% 3,522 2004 R16-32-24-23-0018 63,000 65,200 128,200 CII Pref 1.5%/2% 1,923 2004 R16-32-24-23-0019 94,900 29,600 124,500 CII Pref 1,5%/2% 1,868 2004 R 16-32-24-23-0020 99,600 99,600 CII Pref 1,5%/2% 1,494 2004 R 16-32-24-23-0021 1,000 1,000 C/I Pref 1,5%12% 15 2004 R16-32-24-23-0022 137,400 141,600 279,000 CII Pref 1,5%/2% 4,830 2004 R16-32-24-23-0023 100,900 138,200 239,100 CII Pref 1,5%/2% 4,032 2004 R 16-32-24-23-0024 75,600 54,400 130,000 CII Pref 1,5%/2% 1,850 2004 R16-32-24-24-0003 130,200 114,200 244,400 CII Pref 1.5%/2% 4,138 2004 R16-32-24-24-0004 130,200 154,300 284,500 CII Pref 1,5%/2% 4,940 2004 TOTAL 1,925,000 2,304,720 4,229,720 71,312 o o Source: Anoka County Property Records and Taxation website 7116/2004 Fiscal Implicatlonruns.xls -:IS" - e EHLERS . ~"CCIAUI 'He CITY OF ANDOVER o , ',' AXjNCREMEN cA$,~F[bW Base Total Captured Semi-Annual State Admin. Semi-Annual Cumul. PAYMENT DATE PERIOD BEGINNIN Tax T.. Tax Gross Tax Auditor at Net Tax Net Tax PERIOD ENDING Yrs, Mth, Yr, Canacitv Capacity Capacity Increment 0.36% 10.00% Increment Increment Yrs. Mth. Yr, 0,0 02-01 2004 71,312 71,312 0,0 08-01 2004 0,0 08-01 2004 71,312 71,312 0 0 0 0 0 0 0,0 02-01 2005 0,0 02-01 2005 71,312 71,312 0 0 0 0 0 0 0,0 08-01 200S 0,0 08-01 2005 71,312 71,312 0 0 0 0 0 0 0,0 02-01 2006 0,0 02.01 2006 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 134,632 0,5 08-01 2006 0,5 08,01 2006 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 269,264 1,0 02-01 2007 1,0 02-01 2007 71,312 400,000 328,688 150.132 (540) (14,959) 134,632 403,896 1,5 08-01 2007 1.5 08-01 2007 71,312 400,000 328,688 150,132 (540) (14,959) 134.632 538.528 2,0 02-01 2008 2,0 02-01 2008 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 673,160 2,5 08-01 2008 2,5 08-01 2008 71.312 400,000 328,688 150,132 (540) (14,959) 134,632 807,792 3,0 02-01 2009 3,0 02-01 2009 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 942,424 3,5 08-01 2009 3,5 08-01 2009 71,312 400,000 328,688 150,132 (540) (14,959) 134.632 1,077,056 4,0 02-01 2010 4,0 02-01 2010 71,312 400,000 328,688 150.132 (540) (14,959) 134,632 1,211,688 4,5 08-01 2010 4,5 08-01 2010 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 1,346,320 5,0 02-01 2011 5,0 02-01 2011 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 1,480,951 5,5 08-01 2011 5,5 08-01 2011 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 1,615,583 6,0 02-01 2012 6,0 02-01 2012 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 1,750,215 6,5 08-01 2012 6,5 08-01 2012 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 1,884,847 7,0 02-01 2013 7,0 02-01 2013 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 2,019.479 7,5 08-01 2013 7,5 08-01 2013 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 2,154,111 8,0 02-01 2014 8,0 02-01 2014 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 2,288,743 8,5 08-01 2014 8,5 08-01 2014 71,312 400,000 328,688 150,132 (540) (14,959) 134.632 2.423,375 9,0 02-01 2015 9,0 02-01 2015 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 2,558,007 9,5 08-01 2015 9,5 08-01 2015 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 2,692,639 10.0 02-01 2016 10.0 02-01 2016 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 2,827,271 10.5 08-01 2016 10.5 08-01 2016 71.312 400,000 328,688 150,132 (540) (14,959) 134,632 2,961,903 11.0 02-01 2017 11.0 02-01 2017 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 3,096,535 11,5 08-01 2017 11,5 08,01 2017 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 3,231,167 12,0 02-01 2018 12.0 02-01 2018 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 3,365,799 12.5 08-01 2018 12.5 08-01 2018 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 3,500,431 13.0 02-01 2019 13.0 02-01 2019 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 3,635.063 13,5 08-01 2019 13,5 08-01 2019 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 3,769,695 14.0 02-01 2020 14,0 02-01 2020 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 3,904,327 14,5 08-01 2020 14.5 08-01 2020 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 4,038,959 15,0 02-01 2021 15.0 02-01 2021 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 4,173,591 15,5 08-01 2021 15.5 08-01 2021 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 4,308,222 16.0 02-01 2022 16,0 02-01 2022 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 4.442,854 18,5 08-01 2022 16.5 08-01 2022 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 4,577,486 17.0 02-01 2023 17,0 02-01 2023 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 4,712,118 17.5 08-01 2023 17.5 08-01 2023 71.312 400,000 328,688 150,132 (540) (14,959) 134,632 4,846,750 18.0 02-01 2024 18.0 02-01 2024 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 4,981,382 18,5 08-01 2024 18.5 08-01 2024 71,312 400,000 328,688 150,132 (540) (14,959) 134.632 5,116,014 19.0 02-01 2025 19,0 02,01 2025 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 5,250,646 19.5 08-01 2025 19.5 08-01 2025 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 5,385,278 20.0 02..a1 2026 20.0 02-01 2026 71,312 400,000 328,688 150,132 1540) (14,959) 134,632 5,519.910 20.5 08-01 2026 20.5 08-01 2026 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 5,654,542 21.0 02-01 2027 21,0 02-01 2027 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 5,789,174 21,5 08-01 2027 21,5 08-01 2027 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 5,923,806 22.0 02-01 2028 22,0 02-01 2028 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 6,058,438 22,5 08-01 2028 22,5 08-01 2028 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 6,193,070 23,0 02-01 2029 23.0 02-01 2029 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 6,327,702 23.5 08-01 2029 23,5 08-01 2029 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 6,462,334 24,0 02-01 2030 24,0 02-01 2030 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 6,596,966 24.5 08-01 2030 24,5 08-01 2030 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 6,731,598 25,0 02..a1 2031 25.0 02-01 2031 71,312 400,000 328,688 150,132 (540) (14,959) 134,632 6,866,230 25.5 08-01 2031 25,5 08,01 2031 71312 400 000 328688 150132 ;540i (14959\ 134 632 7000861 26,0 02-01 2032 Totals 7 806 840 28105\ 1777 8731 7000 881 4025992 13312\ 1368 449\ o NOTES: o 1. State Auditor payment is based upon 1st half, pay 2002 actual and may change over term of district 2. Assumes redevelopment is completed In 2004, assessed in 2005 and first increment is paid in 2006. If increment received in 2005, district will be shortened by one year. 3. Amount of increment will vary depending upon market value, tax rates, class rates, construction schedule and inflation on Market Value. 4. Inflation on tax rates cannot be captured. 5. T1F does not capture state wide property taxes or market value property taxes. 7/1612004 Estimates Only Fiseallmplleatlonruns.xls -3'- o "-', I , '-J r) V APPENDIX E MINNESOTA BUSINESS ASSISTANCE FORM (MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT) Form to be added prior to the public hearing APPENDIX -37- E.\ o o o APPENDIX F REDEVELOPMENT QUALIFICATIONS FOR THE DISTRICT The City's engineering firm, SEH is currently in the process of accumulating the required data to substantiate the coverage requirements and determine that the level of blight is sufficient for qualification under the law. Prior to the public hearing, SEH will provide a written report outlining their findings, APPENDIX F-l -J?- / " v APPENDIX G BUT/FOR QUALIFICATIONS , ,:> BUT I FOR ANALYSIS Current Market Value - Est. 4,229,720 New Market Value - Est, 20,000,000 Difference 15,770,280 Present Value of Tax Increment 4,025,992 Difference 11,744,288 Value Likely to Occur Without Tax Increment is Less Than: 11,744,288 / '\ ,,-.J The proposed development, in the opinion oj the City Council, would not reasonably be expected to occur solely through private investment within the reasonably Joreseeable future and that the increased market value oJthe site that could reasonably be expected to occur without the use oJtax increment financing would be less than the increase in the market value estimated to result Jrom the proposed development after subtracting the present value oj the projected tax increments Jar the maximum duration oj the TIF District permitted by the TIF Plan. "Z ( The proposed development, in the opinion oj the City, would not reasonably be expected to o~cr solely through private investment within the reasonably Joreseeablf' Juture: The proposed redevelopme consists of small commercial and light industrial busincsses in City of Andover, This area is occupied by parcels, where some acquisition will be required, demolition and renovation to permit the proposed redevelopment of the area, The costs of renovation, land acquisition costs and site preparation, on the original project, is expected to be over $376,000, Without any public assistance, the cost of land utilities, demolition, site preparation is higher than raw land prices. In addition, with public assistance, other business ownersin the District have expresscd interest in renovating existing facilities, The increased market value oj the site that could reasonably be expected to occur without the use oj tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value oJthe projected tax incrementsJor the maximum duration oj the TIF District permitted by the TlF Plan: It is not likely that any new development on this site is feasible without assistance, New development or redevelopment on the site would not take place in the foreseeable future, Therefore, the City concludes as follows: a, The City's estimate of the amount by which the market value of the entire District will increase without the use of tax increment financing is less than $11,744,288, b, If all development which is proposed to be assisted with tax increment were to occur in the District, the total increase in market value would be up to $15,770,280 (see above table), c, The present value of tax increments from the District for the maximum duration of the district permitted by the TlF Plan is estimated to be $4,022,922 (see above table), Even if some development other than the proposed development were to occur, the Council finds that no alternative development would occur that would produce a market value increase greater than $11,744,288 (the ,~) amount in clause b less the amount in clause c) without tax increment assistance, APPENDIX G-I -5'''1- /- -~ , ) '-.../ Andover Economic Development Authority Meeting Minutes-June 29, 2004 Page 5 mmissioner Jacobson inquired if they would be entering into a one-year contract. Comm' sioner Trude replied that she thought it needed to be longer than one year. inquired if the EDA felt that a seven percent commission was adequate. Commissioner No replied that a seven percent commission may be adequate if they are selling property at $ . 0 per square foot, but possibly not at $2,00 per square foot. Mr. Dickinson inquired if t is something that staff should discuss with Mr. Mulrooney. Consensus of the EDA was yes. Mr, Dickinson questioned what the su et date of the contract should be. Consensus of the EDA was that the contract , " :0 Motion by Knight, seconded by Orttel, to direct sta to discuss the possibility of a sliding scale fee on comrnerciaVindustrial transactions if appropria include exclusions for current contacts the City has already entered into discussions with, an ho rate for service to assist with closings on any of the transactions listed under the exclusio and that the contract be a minimum of two years. Commissioner Trude inquired if staff was reluctant to move forward ith the contract because they seem to be having good luck marketing the development on their 0 ,Mr. Dickinson replied that things have been going good, but staff still needs assistance to filled out in the time they have set forward, Commissioner Knight inquired if it will be possible to get started with the residenti ortion of the development before they begin the comrnerciaVretail areas. Mr, Neumeister replie that staff would like to have commerciaVretail contracts in place before the residential portion proc ds forward, Staff has met with Bruggeman Homes and they seem to be in agreement with the current timeline. Motion carried unanimously. .. UPDATE ON PROPOSED TIF DISTRICT 1-4 :~ Community Development Director Neumeister explained that staff held a meeting with the property owners in the area known as Hughs Industrial Park on June 22, 2004. There were five property owners representing nine of the properties present. Staff indicated that the process to set up the District must start over and the City wants to make sure they have discussed with all potential property owners in the area involved what the opportunity is and whether they would -~o- (J Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 6 be interested in being included in the District. It was explained that in order to assist in qualifYing parcels that will be included in the potential new district there will need to be a visual inspection and report on the properties to determine whether the conditions present will qualifY the property for inclusion in the tax increment district. It was indicated that the inspection would not be used for anything other than determining ifthe site and building will allow the City to qualifY the parcel in the proposed new T1F district. Generally there was acceptance that the City should proceed with the inspections and analysis of what can be done to set up the District for the entire Hughs and Westview Industrial Parks. Mr, Dickinson stated that due to the fact that a few property owners were not present at the meeting, staff will be individually contacting the other property owners in the area to determine iftheyare interested in being included in the proposed district. The general feeling that was prevalent at the meeting on June 22nd was that the properties could greatly benefit from being included in the TIF District and that the City should continue in the effort to expand the boundaries of the original area. Commissioner Orttel noted that MMHI is currently zoned residential so they should probably make changes to the zoning if it is going to be included in the T1F District. / '~ 'J There was no action required, Communi evelopment Director Neumeister explained staff has been working on determining the cost ofthe ument signs and have found that the cost will generally exceed $16,750 per monument sign. Th oal of the EDA was to have monument signs at six to seven locations at entrances into the Comm 'ty, Firm cost estimates that staff has received are far in excess of what had originally been enVl ' ned. Staff is concerned that the direction this is taking is not in keeping with the original budget a also there are other priorities that they may want to consider before these signs are authori ,Staff would prefer to have the green metal entrance signs move forward and receive approval fo onstruction and installation (cost $6,000 to $7,000) and hold off on the monument style en igns, There are many costs that could be involved in the marketing of Andover Station North staff would prefer to hold off on the large costs involved in the monument signs until the deve ment of Andover Station North has generated enough additional revenues to support the large exp e involved, President Gamache inquired if there was CIP money set aside for the m ument signs, Dickinson replied yes, but explained that with as fast as Andover Station No makes sense to hold off on spending that money until the area is developed, o Motion by Jacobson, seconded by Knight, to authorize the construction and installation 0 e green metal signs; hold on any further work on the monument style signs until Andover Statio North has been nearly fully developed and there are sufficient additional funds to support the cost. -1-/ - ~) , " <.J ~ 'I "-I (j) CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President and Board ~ Jim Dickinson, Executive Directo~ Will Neumeister, Director of Community DevelopmentAL CC: FROM: SUBJECT: Update on Andover Station North Marketing Contract--Planning DATE: August 17,2004 INTRODUCTION On June 29, 2004 the EDA authorized staff to begin working on a contract with Mike Mulrooney, Advanced Resources, to assist in marketing Andover Station North. Staff met with Mr. Mulrooney on July 20th to review his contract proposal and indicate the terms and conditions that he should include in the final form of his contract for services (see attached letter to Mr. Mulrooney), Mr. Mulrooney is working on the revised contract and if available it will be distributed on Tuesday at the EDA meeting, Ifunavailable, then this item should be tabled until the next EDA meeting in early September. ACTION REOUIRED The EDA is asked to review the contract with Mr. Mulrooney (if available) or table this item until the September EDA meeting to allow time for the final contract to be prepared. Respectfully submitted, ~ Will Neumeister Attachment Letter of July 20, 2004 Minutes of June 29, 2004 EDA meeting ~) CITY OF NDOVE July 20, 2004 1685 CROSSTOWN BOULEVARD N,W" ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US Mike Mulrooney Advance Resources 13868 Crane Street NW, Suite 100 Andover, MN 55304 Re: Andover Station North (Exclusions) Dear Mr. Mulrooney: As we discussed, the City of Andover has been working with a number of businesses and developers who may want to buy property directly from the City of Andover in the area known as Andover Station North. As you know, the City found a great deal of interest in the sites for town house development and selected Bruggeman Homes to become the developer of choice for the housing area in Andover Station North, During those discussions, we learned that Bruggeman is also interested in potentially developing offices in the same area, Therefore, we have listed them as exclusions to both the housing and office development at Andover Station North. , \ The remaining exclusions have been working with the City Staff for some time and include the V following companies or individuals: . Thomas Bissen -- Copperwood Investments . Michael Casey -- Northstar Glass Industries, Inc. . Michael Monson - Benson-Orth Associates, Inc, . Keith Ulstad - United Properties . Tom Palmquist - Ryan Companies, US, Inc, . Kevin Maas - Amcon, Inc. . Mike Quigley -- Emmerich Companies, Inc. We ask that in preparing the final form of the contract for your services, please list these names and companies as exclusions, The City would ask that the final form of the contract to be non-exclusive, Meaning if the City locates other individuals or companies that are interested, and you did not provide the lead, there will be no finders fee paid to Advance Resources for them to purchase property in Andover Station North, The contract should also include an hourly fee if we should need your services to complete a sale with the people or companies named above, If you should have any questions please feel free to contact me. Sincerely, c.&d/lb~~ Will Neumeister Director of Community Development ", Cc: EDA Members o Jim Dickinson, Executive Director ~) , \ ,...) '0 Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 3 GQn:missioner Trude replied that typically the smaller single office units don't require a lot of park g. Commiss ner Orttel inquired if it made sense to provide office above the proposed retail area, Mr. Neumel r replied that it is very difficult to market second level office space in the suburbs, Mr. Neumeister in ired if the EDA was in overall agreement with the concept of what is included in the sche ic design for Andover Station North so that they can unveil it at the AndoverGolfTournam t. Consensus ofthe EDA was th they are in agreement with the concept plan for Andover Station North. Mr. Dickinson noted that the plan is al s open for change. Commissioner Knight stated that at one poin ey had talked about having dual purpose parking areas between the ballparks and the commercia ' dustrial area and inquired if that was still the case. Mr. Neumeister replied that that is somethin hey will look to negotiate before they sell the land, but that is the City's ultimate goal. Commissioner Jacobson inquired as to what the status is to ding the intersection of Hanson Boulevard and 139th, Mr. Neumeister replied that the intersect n will have to be designed to accommodate the traffic that will flow in and out of the Andover Commissioner Jacobson inquired if the City was to going to depend on e County to build that intersection. Mr. Dickinson replied that the County will be upgrading the ersection, but the City wi1\ be asked to participate. Mr, Neumeister noted that upgrading the intersection is in the County's plan to be c pleted in the next two years, but that does not include installing lights at the intersection, which' City would probably have to participate, Commissioner Nowak inquired if staff was confident that three lanes was going to be adequate serve the development. Mr. Neumeister replied that staff will be having consultants review the concept plan to detennine if the three lanes will work. Originally they had planned for five lanes, but that was when they were including more commercial development. ,.. CONSIDER CONTRACT/ADVANCE RESOURCES PROPOSAL Finance Director/Interim City Administrator Dickinson stated at the May 25, 2004 meeting, the EDA directed staff to discuss a perfonnance based marketing agreement with Mr. Mike Mulrooney of Advance Resources for Development, Incorporated. Staffhas had discussions with Mr. Mulrooney and a proposal was presented for the EDA's consideration. Mr. Dickinson explained that the proposal was similar to the arrangement with Advance Resources for the ,~ Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 4 initial development of Andover Station, The new proposal proposes various development services through a consulting fee/commission of seven percent of the negotiated selling price of the property sold. The proposal is performance based as requested by the EDA, and if the EDA were to decide to proceed forward with the proposal, staff would recommend that the proposal be modified to allow that exclusions be made for proposals and contacts that City Staff has marketed to and secured development interest from in Andover Station North. Commissioner Trude inquired if Mr. Mulrooney would consider a flat hourly rate to assist with staff with the process in the situation where staff has already secured development interest. Commissioner Nowak inquired if any thought had been given to pay a fee based on a sliding scale. Commissioner Trude replied that she was thinking oftrying to have staff and Mr. Mulrooney work together rather than against each other. Mr. Dickinson explained that staff did discuss with Mr, Mulrooney that they would want exclusions and he seemed fine with that. His concern is that at this point going forward it could o be very fuzzy as to who those contacts are. Commissioner Jacobson stated that it seems that staff has had great success already with bringing in potential users and questioned if it is necessary to even enter into a contract with Advance Resources. Mr. Neumeister replied that he thought there were definitely contacts that Mr. Mulrooney has that City staff does not. Mr, Dickinson stated that he felt ajoint agreement would work fine. Mr, Orttel inquired if staff felt that $4.5 per square foot was a reasonable market rate. Mr. Neumeister replied that the retail property is at least that, and the light industrial property would sell between $2,00 to $4,00 per square foot. He noted that the City does have to consider price breaks on the commercial/industrial section because surrounding communities are giving the land away, Commissioner Orttel inquired if the City would only be selling the building pad. Mr, Neumeister replied yes. Commissioner Orttel replied that if that was the case the City was providing a huge subsidy because the ponding, roads, etc will already be in. o Mr, Dickinson stated that he is hearing from the EDA that they would like staff to discuss the possibility of a sliding scale fee on commercial/industrial transactions if appropriate, an hourly rate for service to assist with closings on any of the transactions listed under the exclusion. , "' J Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 5 Commissioner Jacobson inquired if they would be entering into a one-year contract. Commissioner Trude replied that she thought it needed to be longer than one year. Mr. Dickinson inquired if the EDA felt that a seven percent commission was adequate. Commissioner Nowak replied that a seven percent commission may be adequate if they are selling property at $4,00 per square foot, but possibly not at $2,00 per square foot. Mr. Dickinson inquired if that is something that staff should discuss with Mr, Mulrooney. Consensus of the EDA was yes, Mr. Dickinson questioned what the sunset date of the contract should be, Consensus of the EDA was that the contract should be at least two years, ~) Motion by Knight, seconded by Orttel, to direct staff to discuss the possibility ofa sliding scale fee on commercial/industrial transactions if appropriate, include exclusions for current contacts the City has already entered into discussions with, an hourly rate for service to assist with closings on any of the transactions listed under the exclusion, and that the contract be a minimum of two years. Commissioner Trude inquired if staff was reluctant to move forward with the contract because they seem to be having good luck marketing the development on their own, Mr, Dickinson replied that things have been going good, but staff still needs assistance to get the development filled out in the time they have set forward. Commissioner Knight inquired if it will be possible to get started with the residential portion of the development before they begin the commercial/retail areas, Mr. Neumeister replied that staff would like to have commercial/retail contracts in place before the residential portion proceeds forward. Staff has met with Bruggeman Homes and they seem to be in agreement with the current timeline. Motion carried unanimously, 'E ON PROPOSED TIF DISTRICT 1-4 : '\ '-../ Community Developmen or Neumeister explained that staff held a meeting with the property owners in the area known as Industrial Park on June 22, 2004, There were five property owners representing nine of the propertle t. Staff indicated that the process to set up the District must start over and the City wants to make s have discussed with all potential property owners in the area involved what the opportunity is an they would / , v CITY OF NDOVE CD TO: 1685 CROSSTOWN BOULEVARD N,W,. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US EDA President and Board ~ Jim Dickinson, Executive Direct~ Will Neumeister, Director of Community Development /~ CC: FROM: SUBJECT: Discuss Andover Station North Development Plan--Planning DATE: August 17,2004 INTRODUCTION On June 29, 2004 the attached colored drawing was reviewed by the EDA so that it may be presented at the EDA Business Appreciation Day Golf Outing on the 30th. In order to implement the vision for medium density housing for this area, there will need to be a land use plan amendment processed through the City Planning Commission and City Council, that is ultimately approved by Metropolitan Council. ~J DISCUSSION The land use plan amendment would change the land use for this area. The land use is currently shown as commercial and also high density residential and that would be changed to medium density residential, Provided the EDA agrees with this request, staffwill bring this forward to the Planning Commission on August 24, 2004, ACTION REOUIRED The EDA is asked to review this change in land use and authorize the staff to proceed to the next step. That step being review and approval of the land use plan change to medium density residential over an area of approximately twenty acres in Andover Station North, Provided the land use changes are approved by the City Council and ultimately the Metropolitan Council, the zoning map would also need to be changed to M-2, Multiple Dwelling. Respectfully submitted, ~ Will Neumeister Attachment Colored Map of Andover Station North o Minutes of June 29, 2004 EDA Meeting o o , , '0 Andover Economic Development Authority Meeting Minutes - June 29. 2004 Page 2 ping space requirements" but the EDA will still have one more opportunity to review the plan and the 'als ofthe proposed building. Commissioner Trude sugges t maybe they should be reviewing what the City's parking requirements are for financial institutlO . Mr. Dickinson explained that previous direction from the as that the development group come back with a plan that would not require any variances and comp . h City Code, Motion carried unanimously. ~ UPDATE OF ANDOVER STATION NORTH Community Development Director Neumeister explained the staff has been working to develop a land use plan and marketing drawing for Andover Station North. Mr. Neumeister reviewed the schematic drawing for Andover Station North with the EDA. Commissioner Knight inquired as to what type of use would be considered light industrial. Mr. Neumeister replied that one of the potential uses would be a builder showcase building, He explained that the units for the light industrial would be carved into 2,000 square foot bases to accommodate several different uses, Commissioner Jacobson inquired as to what the net density is in the residential portion of the development Mr. Neumeister replied that six to eight units per acre is currently being proposed. He explained that they would be constructing two different types of units that would be affordable market rate housing and be owner occupied, Commissioner Trude suggested replacing the housing units adjacent to Jay Street with office units that look similar to the housing units. Mr. Neumeister replied that staff did talk to the developer about that possibility and it was his preference to have the housing come all the way to Jay Street, Commissioner Trude replied that she thought it would be a way to bring more commercial tax base into the City. Commissioner Knight inquired if it was possible to provide a mix of housing and residential along the main street Mr. Dickinson replied that is something they could negotiate with the developer, but noted that in reality the City would more than likely receive more tax base with the townhouse units rather than the commercial units because you have to provide for additional parking with the commercial units, o Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 3 Commissioner Trude replied that typically the smaller single office units don't require a lot of parking. Commissioner Orttel inquired if it made sense to provide office above the proposed retail area, Mr. Neumeister replied that it is very difficult to market second level office space in the suburbs, Mr. Neumeister inquired if the EDA was in overall agreement with the concept of what is included in the schematic design for Andover Station North so that they can unveil it at the Andover Golf Tournament Consensus of the EDA was that they are in agreement with the concept plan for Andover Station North, Mr, Dickinson noted that the plan is always open for change, Commissioner Knight stated that at one point they had talked about having dual purpose parking areas between the ballparks and the commercial/industrial area and inquired ifthat was still the case, Mr, Neumeister replied that that is something they will look to negotiate before they sell . " the land, but that is the City's ultimate goal. ....-..J Commissioner Jacobson inquired as to what the status is to upgrading the intersection of Hanson Boulevard and 139th. Mr. Neumeister replied that the intersection will have to be designed to accommodate the traffic that will flow in and out ofthe Andover North Station. Commissioner Jacobson inquired if the City was to going to depend on the County to build that intersection, Mr. Dickinson replied that the County will be upgrading the intersection, but the City will be asked to participate. Mr, Neumeister noted that upgrading the intersection is in the County's plan to be completed in the next two years, but that does not include installing lights at the intersection, which is why the City would probably have to participate. Commissioner Nowak inquired if staff was confident that three lanes was going to be adequate to serve the development Mr. Neumeister replied that staff will be having consultants review the concept plan to detennine if the three lanes will work. Originally they had planned for five lanes, but that was when they were including more commercial development CON. ONTRACTIADVANCE RESOURCES PROPOSAL \~ Finance Director/Interim City ator Dickinson stated at the May 25, 2004 meeting, the EDA directed staff to discuss a perfonnance arketing agreement with Mr. Mike Mulrooney of Advance Resources for Development, Inco , Staff has had discussions with Mr. Mulrooney and a proposal was presented for the EDA's conSl . n. Mr, Dickinson explained that the proposal was similar to the arrangement with Advance Resource e If; C!; n ~,-~ j , ; ~ a i ~ ~ oj g~ n 1"1 ~... 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ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: President and EDA Members CC: Jim Dickinson, Executive Director Will Neumeister, Community Develop nt Director/tfi- FROM: SUBJECT: Review Request from United Properties for Use of Lot for Financial Institution -Planning DATE: August 17, 2004 INTRODUCTION On May 25, 2004, the EDA reviewed whether the lot at the southwest comer of Martin Street and Bunker Lake Boulevard could be allowed to be used for a TCF Bank As you will recall, the EDA approved of the modifications to the Covenants to allow the use of that site for a financial institution. Recently, United Properties verbally requested the same change to allow Outlot C, located at the northeast comer of Quinn . 'i Street and Station Parkway, to also be allowed to be used for either an office building or a financial -./ institution. DISCUSSION In the previous discussion, the case was made by the developer, Ryan Companies, that attempts were made to market the site for a sit-down restaurant They also had indicated that they would like to accommodate the desire of the EDA for a sit-down restaurant, but the reality is that the market did not support it The property in question does not have the high visibility that the site at the comer of Bunker and Martin Street had. Staff is supportive of the changes to the covenants to allow the property known as Outlot C, located at the northeast comer of Quinn Street and Station Parkway, to allowed to be sold for use as a financ'ial institution, ACTION REOUESTED The EDA is requested to consider the request from United Properties and allow the covenants to be changed to allow the use of the property known as Outlot C, Andover Marketplace East, to be used for an office building or as a financial institution. Res~ submitted, Will Neumeister o Attachments Andover Station Design Standards (section L12 Allowed Uses) Map of Andover Marketplace East o , \ ,J ~J 1. "Lot" shall mean a portion of the Property identified as a lot on a subdivision plat prepared in cordance with Minnesota Statutes, Chapter 505, and filed for recording in the Anoka County order's Office. 1.06 "Occupan" shall mean any Person, other than an owner, in possession of a lot or parcel. 1.07 "Owner" shall me the recorded owner of a lot or parcel, whether one or more persons, but excluding contract for d vendors, mortgagees and other secured parties. The term "Owner" includes, without limitation, ontract for deed vendees and holders of a life estate. 1.08 "Parcel" shall mean a tract 0 d separately described and identified as a "Parcel" within the Property. The conditions and re 'ctions in these Design Standards which apply to each lot shall also apply to each parcel. 1.09 "Person" shall mean a natural individual, corpor . on, limited liability company, partnership, trustee, or other legal entity capable of holding title to re Property. 1.10 "Property" shall mean all of the real Property submitte 0 the provisions of these Design Standards, including all improvements located on the real Prope now or in the future. Tl1eProperty as of the date of the adoption of the Design Standards is leg y described on Exhibit A 1.11 "Street" shall mean a portion of the Property dedicated to the public and sh as a street or 'internal drive on a subdivision plat prepared in accordance with Minnesota Statue Chapter 505 and filed for recording in the Anoka County Recorder's Office. 1.12 "Permitted Uses" shall mean the permitted uses of the Property be limited to community commercial, office, entertainment, office warehouse and residential as defined beluw. The uses shall be limited to those as defined herein. If there is a question as to whether ornot a use meets the definition, the Economic Development Authority shall make that interpretation. Permitted uses shall be allowed only in the areas specified on Exhibit B for which they are specified below. The Block and Lot designations in fmal plats approved for phases of development may differ from those specified below. However, the permitted uses shall continue to be those specified below for the Lots identified on Exhibit B. Communitv Commercial Establishments engaged in commercial operations including retail trade and services and hospitality industries. Areas designated as Community Commercial are shown on Exhibit B. Preferred uses shall include, but are not limited to, , the following: Andover Station Design Standards December 18, 2001 -2 - / " 'J . Apparel and Clothing . Book Store . Food and Grocery Stores . Leather Goods . Photography Studio . Sporting Goods Permitted uses shall include the following: '\ '-J . Antiques . Bakeries . Carpets & Rugs . China & Glassware . Department Stores . Furniture . Hobby Shops . Interior Decorating . Locksmith Shop . Office Supply & Equipment . Pharmaceutical . Tailoring . Toys . Video Store Rental & Sales . Barber and Beauty Shop . Florist . Jewelry Store . Music Store . Optometrist . Bicycles . Candy . Catering Establishments . Clothing & Costume Rental . Electrical Sales & Repair ' . Gifts . Household Appliances · Laundry & Dry Cleaning Pickup . Luggage ~ Paint & Wallpaper Sales . Restaurants . Tobacco . Variety Stores . Liquor Store Sales - Off-Sale Office Establishments engaged in strictly office operations not requiring loading or warehousing facilities. Areas designated for Office uses are shown on Exhibit R The following are permi!kd uses: . Scientific and Technology Industries . Office and Administrative Facilities ) . Financial Institutions · Conference Centers . Health and Dental Care Facilities . Hotels and Motels . Day Care Facilities . Veterinary Hospital Office\Warehouse Establishments engaged in operations requiring both office and warehousing facilities, Office space shall constitute at least 20% of floor area, There shall be minimal impact upon the surrounding environment by noise, vibration smoke, , \ \.J Andover Station Design Standards December] 8, 200] - 3- " dust or pollutants. Areas designated as Office\Warehouse are shown on Exhibit B. The following are permitted uses: , " ',) · Indoor limited retail sales accessory to office\manufacturing uses · Scientific and Technology Industries . Indoor Showroom · Office and Administrative Facilities Entertainment Areas designated as Entertainment are shown on Exhibit B. The following are permitted uses: . Theatres · Restaurants (with or without on sale liquor) . Health Club · Private Clubs, Lodges, Halls or Convention Centers · Indoor Commercial Recreation Residential Areas designated as residential are shown on Exhibit B. '\ \_j 1.13 "Excluded Uses" shall mean the following uses and activities are prohibited within the Property: · Contractors Yards · Lumber Yards · Home Improvement\Building Supply . Garden\Landscape Center · Auto Related industries including sales and repair . Used Material Yard . Exterior SfoFage and sales · Manufacture, storage or sale of explosives or similar dangerous products · Trucking Terminal . "Adult Uses" as regulated by city ordinances SECTION 2 PROJECT DESIGN STANDARDS Development The The purpose of the Andover Station development is to provide for the orderly and integrated develop of a high quality Commercial Center that includes a mix of shops, offices, entertainment, housing, re tiOD, community facilities, and open space. The Andover Station intends to offer citizens a place n'oy an active street life, community activities, and a neighborhood retail experience. , , \.J Andover Station Design Standards December 18, 2001 -4 - / " I , ~~ ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JUNE 29, 2004 - MINUTES ft.. eting of the Andover Economic Development Authority was called to order by President Mike ache, June 29, 2004, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andove , innesota. Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie de; Voting resident member Robert Nowak Volt esident Fred Larsen; and Non-voting resident member Edward Sc tz Interim Executl irector, Jim Dickinson Community Develop Absent: Also present: APPROVAL OF MINUTES \ , -' May 25, 2004,' Correct as written. Motion by Knight, Seconded by Jacobson, approval of the Minutes as written, unanimously. ... APPROVE FIRST AMENDMENT TO DECLARATION OF COVENANTS FOR ANDOVER MARKETPLACE EAST Community Development Director Neumeister stated at the May 25, 2004 EDA meeting, approval was granted for a TCF Bank to be planned for one of the properties at Andover Marketplace East. The attorneys have prepared the paperwork that is needed to allow this use of the property, Commissioner Jacobson inquired if the primary change had to do with the 10 percent floor space, Mr. Neumeister replied that was correct. Motion by Knight, Seconded by Gamache, to authorize the signing of the "First Amendment of the Declaration of Restrictive Covenants" by the EDA President, Executive Director and City Clerk " \ ~ ; -' Commissioner Trude stated that she has observed the number of parking spaces that are provided for at other banks and expressed concern that there may not be enough parking spaces incorporated with this bank, Mr. Neumeister replied that the current proposal does meet the City ordinance as it pertains to / ~ I ~~ Andover Economic Development Authority Meeting Minutes - June 29, 2004 Page 2 parking space requirements., but the EDA will still have one more opportunity to review the plan and the materials of the proposed building. Commissioner Trude suggested that maybe they should be reviewing what the City's parking requirements are for fmancial institutions. Mr. Dickinson explained that previous direction from the EDA was that the development group come back with a plan that would not require any variances and comply with City Code. Motion carried unanimously. >ATE OF ANDOVER STATION NORTH Comm ity Development Director Neumeister explained the staffhas been working to develop a land use p and marketing drawing for Andover Station North, Mr. Neumeister viewed the schematic drawing for Andover Station North with the EDA. ,~ \ '- J Commissioner Knight' quired as to what type of use would be considered light industrial. Mr. Neumeister replied that 0 of the potential uses would be a builder showcase building. He explained that the units for light industrial would be carved into 2,000 square foot bases to accommodate several different es, Commissioner Jacobson inquired as what the net density is in the residential portion of the development Mr. Neumeister replied t six to eight units per acre is currently being proposed. He explained that they would be construe ' g two different types of units that would be affordable market rate housing and be owner cupied. Commissioner Trude suggested replacing the hOUSl units adjacent to Jay Street with office units that look similar to the housing units, Mr. Neu ister replied that staff did talk to the developer about that possibility and it was his preference have the housing come all the way to Jay Street Commissioner Trude replied that she thought it would be a way to base into the City. Commissioner Knight inquired if it was possible to provide a mix ofhousi along the main street Mr. Dickinson replied that is something they could negotiate with the developer, bu oted that .' ') in reality the City would more than likely receive more tax base with the townhouse u 's rather ,,__ than the commercial units because you have to provide for additional parking with the commercial units. rr- "'!HI lOt "~."IIII ...1'.... .......-c.... 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