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Home My WebLink AboutEDA September 21, 2004 /' '\ 'J l. 2. 0 3. 4. 5, 6. 7. 8. 9. ~J CITY OF NDOVE 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 September 21,2004 - 6:00 p.m. Council Chambers AGENDA Call to Order Approval of Minutes - August 17, 2004 and September 7, 2004 Update on Proposed TIF District 1-4 - Planning/Administration-Finance Discuss Andover Station North Improvements - Planning Discuss Andover Station North Residential Land Sale - Planning Discuss Andover Station North Marketing Contract - Planning Update on Andover Station South - Planning/Admin/Engineering Other Business Adjourn ,- (j /', U u 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755,5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: ECDnomic Department Authority CC: Jim Dickinson, Executive Director FROM: Vicki Volk, City Clerk SUBJECT: Approval of Minutes DATE: September 21,2004 INTRODUCTION The following minutes were provided by city staff for approval by the EDA: September 7, 2004 Regular Meeting (Jacobson, Schultz, Larsen, Nowak absent) The following minutes were provided by TimeSaver for approval by the EDA: August 17, 2004 Regular Meeting (Schultz, Larsen, Nowak absent) DISCUSSION Attached is are copies of the minutes for your approvaL ACTION REOUlRED The EDA is requested to approve the minutes of September 7, 2004 and August 17, 2004. Respectfully submitted, /JL'()fl Vicki V olk City Clerk @ "- .I ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING SEPTEMBER 7, 2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, September 7, 2004, 6:03 p,m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Also present: Commissioners Mike Knight, Ken Orttel, Julie Trude Commissioner Don Jacobson, Votirig resident members Fred Larsen and Robert Nowak; and Non-voting resident member Edward Schultz Executive Director, Jim Dickinson Community Development Director, WiJI Neumeister City Engineer, Dave Berkowitz Others Present: Absent: APPROVAL OF MINUTES " f No minutes attached to approve, DISCUSS ANDOVER STATION NORTH IMPROVEMENTS Mr. Neumeister reviewed information regarding the Andover Station North Improvements and the supplemental information provided regarding the cost estimates to move forward with utilities and streets. The feasibility study that was prepared in 2003 was never been presented to the EDA and staffhas been working with Short Elliot and Hendrickson to prepare an amended feasibility report for the needed public improvements, Mr. Berkowitz discussed how the attached supplemental sheet shows the assessable costs of $61,000 per acre that would allow the EDA to recoup costs to rebuild the roadway. The cul-de- sac would be kept separate for future development. Some of the non-assessable costs include the oversizing of the trunk, overpass and contaminate clean up. Commissioner Trude asked if 2.8 million is for the entire street throughout the entire site, Mr. Berkowitz stated that the costs include all residential, commercial and park properties. The costs include site grading and a signal at 139th, The site grading is the most difficult due to the amount of fill that must be brought in, Commissioner Trude asked if the EDA authorized the feasibility study. Mr, Dickinson stated that the feasibility study was authorized when the marketing plan was put together over 1 year ago. ,/ " \J Andover Economic Development Authority Afeeting Minutes - September 7, 2004 Page 2 Commissioner Trude asked about RLK doing a study. Mr, Dickinson said that RLK did an environmental study, Mr, Berkowitz stated that he could look into exactly when the study was authorized. The RFP submission process was done during the time Scott Erickson was City Engineer. Mr. Berkowitz discussed how the land use has changed from a 5 lane roadway to a 3 lane roadway, Originally SEH was asked to look at a Big Box concept versus what is current. RLK is working on doing a concept approval to market the park. SEH is the underlying engineer on the entire project Commissioner Trude stated that Doug Hanson had been looking for information a while ago and she was not aware of this study being done, Commissioner Knight asked what the purpose of pad fInishing was, / " '-J Mr, Neumeister stated that this is related to number 4, Discuss Andover Station North Residential Land Sale, DISCUSS ANDOVER STATION NORTH RESIDENTIAL LAND SALE Mr, Neumeister stated that since the City will be doing the mass grading on site, it makes sense to prepare this as part of the grading, Bruggeman is willing to negotiate a higher purchase price because the City will be doing the grading and tree clearing needed, This increases the purchase price that they are willing to give, Commissioner Trude noted the EDA needs to trust the staff on the numbers, Commissioner Orttel asked if the light on I 39th was included in the numbers, Mr, Berkowitz stated that yes it was, and that the County is not able to pay for it at this time. Commissioner Orttel stated the street costs do not include expansion to the full 4 lanes. Is this okay with the County? Mr. Berkowitz stated that the County would in the future need to build it to the .full 4 lanes, but that 3 lanes is all that is needed currently, These are the minimum road improvements required. / '\ '-j Commissioner Knight asked if Bill Hawkins has gone through this, Mr. Neumeister stated no, Discussion then revolved about lighting of Andover Station North and that this was a significant Andover Economic Development Authority Meeting Minutes - September 7, 2004 Page 3 " " portion of costs. Commissioner Trude asked if this lighting makes sense. She stated that it may just be a waste if people are just driving by, Mr. Neumeister asked if the EDA would like to continue the same lighting theme as Andover Station? Commissioner Trude asked if there were still problems with the original lighting? Mr. Berkowitz stated that yes there were issues and the City is still dealing with the manufacturer, supplier and City Attorney to get some issues resolved, Discussion involved checking with Connexus Energy about other lighting options. Mr. Dickinson then discussed TIP fmancing and how the dollars would pay for the road improvement project. Commissioner Gamache asked about the accessibility of improvements to Pov's Sports Bar, " " Commissioner Orttel stated that assessments were waived when Pov's was built and the City should look into this for future assessments, Commissioner Trude asked about the park assessments and felt that they did not make sense, Mr. Neumeister stated that staff is going by City policy and there would be some benefit to the park. Mr. Neumeister stated that a decision does not need to be made on these issues right now. He would like a decision at the next meeting on September 21,2004, since there is so much information to look at. DISCUSS ANDOVER STATION NORTH MARKETING CONCEPT Community Development Director Neumeister stated that an error occurred in the packet and pages 2, 3, and 4 should not have been attached, Mr. Neumeister stated that Mr, Mike Mulrooney has developed a contract to assist with the marketing of Andover Station North, The contract is for a period of I year. Commissioner Knight asked about Section 4 and why the City would need to pay 3-'1,% for projects that they found. " " r-, o , '\ '--' o Andover Economic Development Authority Meeting Minutes - September 7, 2004 Page 4 Mr. Neumeister stated that the EDA had requested Mr. Mulrooney come back to them with an hourly cost; however this contract is what he provided. Discussion about why Mr. Mulrooney would get the 3-1/2% fee and some examples such as Bruggeman homes was discussed as being completely done by staff. Other discussion about what exactly the 3 \1,% would be for and the marketing Mr. Mulrooney would perform, Commissioner Trude felt that Bill Hawkins should be able to close the deals. Commissioner Orttel stated that he still did not understand what the need for the contract was, He stated that there should be a map that shows exclusions for specific property that staff has already identified purchases of. Commissioner Knight stated that there should be a cap on the total amount of commissions earned from property that City staff has already identified possible interest in. Mr, Neumeister stated that this does not need to be decided tonight and can be brought back to the September 21,2004, EDA meeting with some more fine tuning, UPDATE ON ANDOVER STATION Mr, Neumeister sated that the TCF building is again a possibility, but in front of Festival Foods. Ryan Construction is still planning on a retail strip in front of Target. Therefore the City will get both a bank and retaiL OTHER BUSINESS None Motion by Orttel, Seconded by Gamache, to adjourn. Motion carried unanimously, The meeting adjourned at 7:00 p,m, Respectfully submitted, Dana Peitso, Human Resources Manager DRAFT " .' ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING AUGUST 17, 2004 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, August 17,2004,6:03 p,m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota, Absent: Commissioners Don Jacobson, Mike Knight, Ken Ortte!, Julie Trude Voting resident members Fred Larsen and Robert Nowak; and Non-voting resident member Edward Schultz Interim Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer, Dave Berkowitz Others Present: Also present: APPROVAL OF MINUTES " June 29,2004: Correct as written. July 6, 2004: Correct as written. MOTION by Jacobson, Seconded by Orttel, approval of the Minutes as written, Motion carried unanimously. Commissioner Jacobson wondered why some of the members are not showing up for the meetings, Mr. Dickinson stated they are notified every month and Mr, Nowak did tell him he would not be able to make the meeting because he would be out of town, He explained that Mr, Nowak usually does come to the meetings. Commissioner Jacobson was concerned because the EDA is a board consisting of City Council members and residents of Andover and he felt the resident members should be at the meetings, Commissioner Trude arrived at 6:05 p,m. DISCUSS PROPOSED TIF DISTRICT I-4/APPROVE RESOLUTION MODIFYING DEVELOPMENT DISTRICT NO.1 AND TAX INCREMENT FINANCING PLAN FOR TIF DISTRICT 1-4 Interim Executive Director Dickinson stated 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, -\ :) ,\ \.J '0 Andover Economic Development Authority Meeting Minutes - August 17, 2004 Page 2 Mr. Neumeister reviewed information regarding the TIF District with the Commission and why the commercial owners want the two residential properties included, Commissioner Jacobson asked if this was jerry mandering to meet code. Mr. Neumeister stated the person they have consulted asked they do not jerry mander to make this meet code, Mr. Dickinson stated right now the property owners cannot insure their buildings for full value because of water issues, Commissioner Jacobson stated the residential properties do not seem to want to be included, Mr. Dickinson stated the end residential owner does not want to be included and they are willing to take that property out but they requested the Commission keep the other residential property in for reasons explained, Commissioner Jacobson asked what the other residential owner would do with the land that would be the community septic system, Mr. Dickinson stated the owner could split the lot and sell that portion off. Commissioner Trude stated even if the residential land is in the TIF District, they could use and maintain their land as they want to for as long as they want but it just gives them some financial options if they want to sell out Mr. Dickinson stated this is correct Commissioner Trude stated this could potentially raise the land value quite a bit if it could be sub-divided as commercial or business use. Commissioner Jacobson asked what the difficulty was of adding them in at a later date. Mr. Dickinson stated they could add them in the future but the difficulty is in how long they can collect an increment on them. He stated there becomes some real criteria issues trying to attach to that Commissioner Orttel stated they could still develop it but they would not get subsidy. Commissioner Trude stated the advantage to them would to be included in the TIF District from the beginning, Mr, Dickinson stated that is correct because they can always take them out of the TIF District. Mr. Dickinson stated they need to fine tune the numbers in order to bring accurate numbers forward and they had to switch inspection firms. They would like to get this extended to a future date in September. Commissioner Jacobson asked if they need to certifY by a certain date, Mr, Dickinson stated this did not really matter at this point, it is when the value raises and they start to receive the increment dollar that the clock starts ticking. Andover Economic Development Authority Meeting Minutes - August 17, 2004 Page 3 " .' Commissioner Orttel asked if the rural reserve is filled out to Constance Boulevard, there is no sewer capacity left to go north of there. Mr, Berkowitz stated their plan through the Rural Reserve is to oversize this to handle development to the north. Commissioner Orttel stated the reason he asked this was because the people on the residential property felt it is probably better to have it commercial than residential, Having it commercial, they would be able to market their property fairly quickly at a decent price, APPROVE ANDOVER STATION NORTH MARKETING CONTRACT Community Development Director Neumeister stated on June 29, 2004 the EDA authorized staff to begin working one a contract with Mr. 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 indicated the terms and conditions that he should include in the final form of his contract for services, Mr, Neumeister stated they have not received all of the information for this item yet and they would like to continue this until the September EDA meeting, " -' Commissioner Trude noted she had a correction to the EDA meeting dated June 29, 2004 on page 2, Councilmember Knight did not inquire about a mix of housing and residential, he inquired about a mix of housing and office. "Commissioner Knight inquired ifit was possible to provide a mix of housing and r-esiaential offices along the main street-" DISCUSS ANDOVER STATION NORTH DEVELOPMENT PLAN Community Development Director Neumeister stated 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. Motion by Commissioner Orttel, Seconded by Commissioner Jacobson, to approve the land use change, Commissioner Jacobson asked if there is anything else that needs to be taken care of so they could send it all in together, Mr. Neumeister stated he would rather see it done this way because the Met Council reviewing under forty acres at a time, processes it as a minor plan amendment and it can be processed within ten days, He stated he would rather not take the whole hundred acres in at one time because it could take awhile to explain to the Met Council and screw up the plans for Bruggeman. "\ -' Commissioner Trude asked if there is any residential zoning right now in the area, Mr, () " \ ,-J o Andover Economic Development Authority Meeting Minutes - August 17, 2004 Page 4 Neumeister stated it is all commercially zoned. The land use plan shows high density in one small quadrant. Commissioner Trude stated she is going to oppose this because she does not think they should have more than ten acres because of the lack of commercial development and tax base, Mr. Neumeister stated the Met Council is still holding them to 120 units of affordable housing which this ten acres would have provided at 12 units per acre. This is six units per acre which is considerably less than 12 units per acre which leaves a considerable amount of open space in a housing type that hits their criteria for affordable. Commissioner Orttel asked how many units are on the City land. Mr. Neumeister stated 108. Commissioner Knight asked what the definition is for affordable, ML Dickinson stated it would be between $180 to $200 thousand. These units would start at around $180. Commissioner Jacobson thought they agreed with the Met Council to reserve affordable housing in certain areas. Mr, Neumeister stated that if they reduce the counts in this area, they will have to increase them elsewhere, Commissioner Knight asked where they would put high density housing, Mr, Neumeister stated there are two areas they could put high density. He showed on the map where the areas are located. Motion carried 4 ayes, I nay (Trude). REVIEW REQUEST FROM UNITED PROPERTIES FOR USE OF LOT FOR FINANCIAL INSTITUTION Community Development Director Neumeister stated on May 25, 2004, the EDA reviewed whether the lot at the southwest corner of Martin Street and Bunker Lake Boulevard could be allowed to be used for a TCF Bank The EDA approved 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 corner or Quinn Street and Station Parkway, to also be allowed to be used for either an office building or a fmancial institution, Commissioner Jacobson asked why they want this changed, Mr, Neumeister stated United Properties felt this was a use they would like to market to, When you look at the area, because there is not high visibility off of Bunker, this would work well as a financial building, He stated they bring high tax value with very low service levels, Commissioner Jacobson stated they already have a number of bank buildings in the area. Andover Economic Development Authority Meeting Minutes - August 17, 2004 Page 5 '\ Commissioner Trude asked if they change this parcel, wouldn't it make most of the area office. She stated this land is more visible than Andover Station North ever will be. The Commission discussed the possibilities of future retail versus office areas in Andover Station South. Motion by Commissioner Jacobson, seconded by Commissioner Trude, to deny the request. Commissioner Knight asked what happens if they deny the request. Mr. Neumeister stated United will probably not sign off on the TCF Bank site, Commissioner Trude thought they could solve this problem by having United come back when they have a distinct plan, Motion carried 4 ayes, I nay (Gamache), VERBAL UPDATE ON ANDOVER STATION '\ City Engineer Berkowitz stated the wetland mitigation and storm water basin have been created on the north side which is complete without any issues tied to it, He stated that as they got to the south side, they knew they had petroleum contaminants and they are working through the PCA, Leash and Ryan Companies evaluating the petroleum issues, He stated they have to take samples out of each pile and evaluate each one, He explained the big benefit for the area is that they got Ryan Companies to build the storm water ponds, wetland mitigation and the outlet pipes for both of the ponding areas. Commissioner Orttel asked if they have three hundred yards of spoiled material. Mr, Berkowitz stated that was correct. OTHER BUSINESS Commissioner Knight asked what was happening with the garden golf course, Mr. Neumeister stated Mr. Ward did not get Target's approval for his use in front of their store so he thought they might allow him to use the back pond area instead. Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 7:00 p,m. "\ Respectfully submitted, Susan Osbeck, Recording Secretary () C) o @ CITY OF NDOVE 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER. MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President and Board Membe~ Jim Dickinson, Executive Directo~ Will Neumeister, Community DeveWt Director {l./L CC: FROM: SUBJECT: Update on Proposed TIF District No. 1-4- Planning/Administration-Finance DATE: September 21, 2004 INTRODUCTION The City staff in conjunction with Ehlers Associates, have now put together a fmal report that is going to the City Council on September 21, 2004 that includes twenty parcels in the area that is referred to as the Hughs Industrial Park (see attached location map), The public hearing was continued for three City Council meetings to allow adequate time to complete additional inspections of properties that has resulted in a better district and has allowed additional public input DISCUSSION Ehlers Associates has completed the necessary paperwork to bring this forward for fmal action and the industrial property owners in the proposed district are "on board" with the proposed district. This District will enable them to achieve something that has been woefully inadequate for many years, that being the lack of a comprehensive sewer, storm and potable and irrigation water supply for their properties. These improvements to the area will be the primary focus of how the tax increment dollars will be used. The secondary focus will be improving the aesthetics of the area., both buildings and grounds. ACTION REOUESTED No action is needed, This item was only an informational update, Respectfully submitted, tt/L Will Neumeister Attachment ,/ ~ Map of Development District No, 1 and TIF District No. 1-4 \\ IJ ~ r-p- ~ *L II: ~ ~ t,~ If,! 5~ I I "I-h "T1 n:r ;:> ,,~ rJ '" "'I \ ,----- I I I I I l_____ ttf!!fjf/ ~NDbVE~ Tax Increment Financing District No.1-4 Development District No.1 City of Andover Anoka County, Minnesota 1ii:J 1A1~TAV l'IIJ ~ \ ~ "fj:::::l! II ~ '" --, TIF District No, 1-4 (Subject Site) 11 ~ II Development District No.1 ,,.. :f\ ,~ 'U c I III r I I Development District No, 1 "' ..- ..- 181ST AVE U :=i u - = I. --1 ..tf ~ - " ---/......... <: ), ~ S! ~ :z: '" :ii! =ll--- Ir ~ ;-i!- 'tt '\'8 IB:;' 1-' :g;" - - 'rAI.E, f;j l I Bi!1~" ~;b-- ='=1 ~/ /' J:: =f- -t 1 a "\; :z: '" :ii! '\r ......~ '-.... ~ ! 1,1 ~ - . .-<r' , -\ Tax Increment Financing District No, 1-4 (Subject Site) /' ) "- ~ ~) ~NDbVE~ TIF District 1-4 Economic Development Authority ~r tea ~~ /121 LfL- ~ \ - - - - ~ I- f \ I-~ I~ I '~f T I h. ) 1 )~ " -;,[." ,".... '.' 0"' . .~. '.' ",' .' ",' "ot '0 . ..... ....,.. ............ .... ....... ..... .... ...... .. " .. .' :1""' ..." P,', :f;{J:..:;::~;JJ~J.tt] ~"""""""""""""..,., . =:.::.."; :::. .:;...::::~. ::::::t;:::;:::; :,':;:: " , .... . . ...... . .~:.f: . ....'. .. " '::;:;";;: :::::::=:=:::::1: ~::.:;:::;:::;::.r:."o "'0"" . . '. .. . .., " , . '., . '0 .. .. .. ", ,~;' ',.. . . ...... ...... ", pO' '0' ....... . r ~ I~ <( Ji - ..-- \~ ~ / ~....... 0',\ ~~ 1~1,~T AVE I I \ c--- ~ .~, . r -, '-) CITY OF NDOVE (j) 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President and Board Jim Dickinson, Executive Direct~ Will Neumeister, Director of Community Development 41:1" CC: FROM: SUBJECT: Discuss Andover Station North Improvements--Planning DATE: September2l,2004 INTRODUCTION ~ This item was brought before the EDA on September 7,2004 and was continued to this meeting, Due to the progress that has been made with regard to negotiating an agreement with Bruggeman Properties, there is now a need to discuss the extension of streets and utilities into Andover Station North. As you will see in the next item on the agenda, the decision to move ahead with ordering, designing and bidding a public improvement project to bring utilities and streets into the area becomes timely, DISCUSSION Staffhas worked with Short Elliot Hendrickson to prepare an amended feasibility report for the needed public improvements. In the spring of2003, staff began to discuss the land use plan and issues related to the development of Andover Station North, and direction was given at that time by the previous City Administrator to prepare a feasibility report, That report was prepared, but never presented, Now with the letter of intent from Bruggeman, it needed to be revised and costs evaluated to make a decision on whether this project should be moved forward, The engineer's estimated costs are shown on the attached spreadsheet The costs on the sheets are based on a preliminary design of the roadway, which is now anticipated to be a three-lane design with the center lane being a turn lane, There is a need to do site grading all at once and that is also shown on the tally sheet u The decision needs to be made whether utilities and streets can be extended halfway from Btmker Lake Boulevard to Hanson Boulevard, or all the way, to Hanson Boulevard. Halfway is the minimum needed in order to be able to extend lateral lines and streets into the Bruggeman townhome site, Bruggeman, at this point, is a potential contract purchaser and the City EDA is the underlying landowner, For this to move forward, the EDA must make the decision to petition for the improvement project (at least Phase I) and the City Council must be willing to consider assessing the property that benefits. This would also potentially involve other properties in the area, including Povlitski's and the Great River Energy property along Btmker Lake Boulevard, Bruggeman is working on putting together a purchase agreement with Mr.Povlitski to buy the portion of his property that is located along Jay Street and the portion that would enable all the townhomes to be built according to the attached schematic plan. '" Cost and Financial Commitments By authorizing the Phase 1 of Jay Street to begin, the EDA would be committing to bearing an assessment against the property owned by the EDA. Phase 1 is estimated to cost a little more than half (assume 60%) of the estimated overall assessable costs, Estimated Assessable Project Costs (to build entire Jay Street to Hanson Blvd.): $3,708,049 Assuming sixty percent of project costs attributable to the Phase I construction: $2,224,829 These costs would be offset by the land sale to Bruggeman Properties $1,767,000 (based on 114 housing units), paid over the next two years, with interest the amount will be on the order of $1,912,600. Other potential land developers that staff is working with are in the process of preparing "Letters of Intent" that may be available in the next two weeks. These two potential land sales could allow the entire Jay Street project to be constructed all at the same time. If these materialize, staff would bring this back to the EDA for review, and request authorization for the entire project to be moved forward, Also, take into consideration that there are other costs that would be attributable to serving the surrounding properties (Povlitski, and Great River Energy, and the City for the park complex) with utilities and street access. The swnmary is provided below: -, Povlitski assessable (residential site) Povlitski assessable (new office area) City Park assessable City non-assessable EDA non-assessable TOTAL $345,451 $277,584 $370,126 $177,763 $187.387 $1,358,311 Contaminant Removal The City staff has been working with Ryan Companies and Leisch to quantify the amount and type of contaminants at the excavation site for the wetlands in Andover Station North and complete the needed clean up of contaminants for the Target site in Andover Station South, At this point in time, it appears that the costs involved that are attributable to the EDA are on the order of$300,000. The staff will provide further details at the meeting. ACTION REOUIRED The EDA is requested to receive the information, take this opportunity to discuss the spreadsheets and the overall direction this needs to move to accommodate the Bruggeman townhome development. , 2 u :J /\ \.J The EDA is requested to make a decision on beginning the work involved in Phase 1 of Jay Street (utilities and streets) and whether to request the City Council to hold a public hearing and begin the Chapter 429 Assessment process for the involved areas, In a few weeks, as other "Letters of Intent" are provided by other developers, staff will bring forward another discussion item on this topic to consider the authorization of the entire project all at the same time. Respectfully SUbmiwL Will Neumeister Attachments Spreadsheet of Andover Station North Costs ,/ Concept Plan for Andover Station North / 3 oJeot H_: And~ S\IdIon Hor1h JppI..-nW F.-Ibtlty R.port Dill.: August 2:1, 2004 AssessBble A.reas MdOYW 9tBIIon Nor1h (A_chAa.. compon...t) . 11.t III:lfIS An~ stillion North (eorm.erc:w CofT1JonWlt) - 27.11 B:II'IS p~tzId Ptopwty (R_dwt.W CcJn1Ioon.nt) .5.6 IE:I"" PD'llOtdd Propwty (eornn.n:W Compm.nt) .4.5 BCI'. Andl:Jlfnl' stillion Nor1h (p1Wk eon.-.nt) . iJlE[a TotS,AsnallbI.Ar- .en.1'acr_ Assessaf>ls Costs rDevelooer"l !slim""" Co_on coot (Jay stroot): SIts Orating and Restoralon- Lateral Sanl\aly Sew." Lateral Wa\er Main- SlormS.WOI" streets- Landscaping Ughllng" S\bIctel MOOIUzaion (4%) SI,071,03O,(IO $121,419.15 125,4&4.50 315,149.10 745.792.74 60,120.00 303 065.02 2,742,640.5' 109 705.62 P-sse.ssablll Construction Costs: S2,852,346,13 Indired Costs (30% r:A construclon) $ 855,703.84 Total Assessable Costs (Developer): $3,708.049,97 (A) Assessable Con.strucrion Cost, I acre (50.f1I1ssessabJeaCt'e$) $61,6B7.74 . Does nollnclude OOl'\Struction cosII tor ClJ..oe-Sae street Estimated ConstrucUon Cos1 rcw-Oe-S1IIc street): SIte Grading & Restoralon Lateral Sanitary Sewer Lateral Water Main storm Sewer Sire.1s Ughllng S\bIctal MOOltzaion (4%) S4,226,25 S3S,04B.eo $23.00s.~O $54,121.20 S60,453,75 $25,87Z.DO =,=,30 S8.149,09 Assessable Construction costs: $21 1 ,876.39 Indlred Cosls (30% 01 ConsJruo&~ SB3,5B2.92 Total CIJ-De-Sao costs: sm,439,31 City Project NCl. 02-33 " .' Non-Assessable Costs rcftvl Trunk SanItary Sewer Trunk Waler Main OewatBJtng S\bIoIeI McbIBJ.ion (4%) SSB,433.0D S 25,063.50 S 50000,(10 S 131,498.50 S 8259,8. Non-Assessable Construction Ccsts: $13f3,7SB.3S Indlred Costs (30% ol ConslrUo&~ $ ,".028.&1 Total Non-Assessabl. Cosls (Cltyl : $177.703.27 Non-AS$e$Sable Costs lEDA) Remove Fence AemOYe l1res Remove Sur1ace Debris Abandon We. SpecIal Exoavation . HaU Contaminated SdI to Landfil Slblotel McbItzalon (4%) $4,725.00 $15,750,00 $38.750.00 $2,625,00 $78750,00 $13S.SOO.00 $S.~..OO "\ Non-Assessable Construction Costs: $1404,1404.00 Indireol Costs (30% 01 ConslrUo&~ $43,24320 To'a1 Non-Assessable Costs (EO~: $187,387,20 AndQver statltJh North Costs (Oomponeri Area. Assessable Cons:truc1Ion Costs/Acre) Residential component (16.9 acres resldenthd x A) Assessable Construction Costs $10oll2522.75 Assessable Construction CosU: $1 67.2.354.5 Commercial Component (%7.1' acres commercial x A) Pavlltzkl Property Costs (component Area. .Assessable Construction Costs/Acre) \ Residential Component (5.6D acres residential x A) Assessable ConstnJcllon costs $345451.34 ./l$essable Construction Costs $277 5P4,B Commercial component (4.5 acres commercial x A) Andover station North Costs (Oomponenl. Area . Assessabla Construction Costs/Acre) Park Compcmen1 (5.00 Beres x A) Assessa.ble coostrucllon ccsts $370 126.43 ~) .. - C Q) C o '~ o '" C"l N c o z - .. 1O e- o. <=' o III W .. o o N ti 11 01 " c( ~ it t: 'li o c Z t: ~ 0 :: 0- Il II 1ii a: ~ ~ : :D o 'ii " il ~ u. if iil E c .. II Z E c; II II 'ii. "0 0- ~ " 0.. (J) o ll> .. .... 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WWW,CI.ANDOVER,MN,US TO: EDA President and Board evelopmentt~ CC: Jim Dickinson, Executive Director FROM: SUBJECT: Discuss Alldover Station North Residential Land Sale-Planning DATE: September 21, 2004 INTRODUCTION The City StalIhave been negotiating a residential land sale with Bruggeman Homes and it has resulted in a "Letter of Intent" that is attache<L :J DISCUSSION While discussing the best method to determine land sale price, it was determined that the City would sell Bruggeman a parcel that was graded, and had no additional charges for hringing a trunk sewer and water line to the edge of the property, The developer's "Letter of Intent" explains this under the sellers responsibilities and it also explains under buyers responsibilities that they are willing to pay a fee for area and connection charges as is consistent with City of Andover policy for city installed improvements, They would also bear the costs of all lateral and street costs for extending the streets and utilities into the property from Jay Street. This is important to keep in mind during these discussions as the actual costs of those items does add significantly to the developer's costs, Attached is a detail that shows area charges will amount to an estimated $349,992 (based on 108 housing units) on the lands they would purchase from the EDA and will also be approximately $162,571 (based on 50 units) on the residential land they plan to purchase from Mr. Brad Povlitsh These numbers may change slightly based on actual units and acreage on each property, The terms also indicate that they will provide $20,000 earnest money at the time of execution of a purchase agreement and an additional $80,000 earnest money payment at the time of preliminary plat approval, and then another $100,000 at the time of closing, StalIfeels this shows a major commitment to the development being done in a timely fashion, Another important point to acknowledge is the timing that they are planning on taking down the frrst phase. They indicate that if the City can agree to complete the first lift of asphalt by August 1,2005 they would close by February 28, 2005, This would be an additional $389,000 that would be paid next spring, The remaining land in Phase II would be closed on in two years. Based on the updated count of 114 housing units, the amount shown in the "Letter of Intent" needs to be changed to add an additional $93,000, The balance of the amount due would be financed by the EDA at 6% compounded annually forthat period of time, Using the higher total housing unit count, there would be a balance due of$I,323,600 on February 28,2007. Total land sale would then amount to $1,912,600, ACTION REOUIRED The EDA is asked to review the "Letter oflnten!" from Bruggeman Homes and determine whether the terms are acceptable, If they are, the EDA is asked to authorize stalIto: I.) Work with the City Attorney to prepare a purchase agreement on the sale ofIand in Andover Station North to Bruggeman Properties; and 2.) Authorize stalIto begin the Chapter 429 process for public improvements to fulfill the contract date of August I, 2005 to have installed utilities and completed the frrst lift of asphalt for the frrst phase of the development, C) Respectfully submitted, Will Neumeister t:i.L Attachments Bruggeman Properties Letter of Intent (Dated August 16,2004) ./ Table of Proposed Payments/Area Charges for Property v-' Tabulation of Proposed Payments (Bruggeman Properties) " . Earnest Money Down Payment (September 2004) . Earnest Money Down Payment - After Prelim. Plat Approval (Late 2004) . Closing (February 28, 2004) . August 1, 2005 (utilities and streets are in) . Balance Due in Two Years (6% interest compounded annually) $20,000 $80,000 $100,000 $389,000 $1.323-600 TOTAL $1,912,600 Other Potential Land Sales (over the next two years): . Mike Casey (office showroom) 195,300 Square Feet at $3.50 $683,550 . Keith U1stad (office showroom) 195,300 Square Feet at $3.75 $732,375 . Commercial Site (300' x 300') 90,000 Sq. ft. at $7.00 $630,000 . Commercial Site (360' x 550') 198,000 Sq. ft. at $7.00 $1,386,000 TOTAL $3,431,925 Area Charges for Bruggeman on City EDA Land (subject to adjustment based on actual acreage and units) " Sewer Area Charges ($1,302/acre) Sewer Connection Fee ($351/unit, 108 units) $23,436 $37,980 $38,232 $250344 Water Area Charges ($2,124/acre) Water Residential REC ($2,318/unit, I 08 units) TOTAL $349,992 Area Charges for Bruggeman on Povlistski's Land (subject to adjustment based on actual acreage and units) Sewer Area Charges ($1,302/acre) Sewer Connection Fee ($351/unit, 50 units) $11,067 $17,550 TOTAL $18,054 $115.900 $162,571 ", Water Area Charges ($2,124/acre) Water Residential REC ($2,318/unit, 108 units) 2 / '\ ',,- ) ~ /{"" 48 R UGG EMA_N_~J30P_ERTI~S ~ B u i I din 9 Com m u nit i e 5 S i nee 1 95 9 August 16, 2004 RECEIVED Mr. Will Neumeister Andover Economic Development Authority 1685 Crosstown Blvd. N.w. Andover, MN 55304 AUG 1 8 2004 CITY OF ANDOVER Re: Andover Station North Dear Will, Bruggeman Properties, LLC is pleased to provide this revised Letter of Intent for the purchase of property north of Bunker Lake Boulevard in Andover as depicted on the attached Concept Layout The probable phasing of the project is also shown on the plan, Upon your review and acceptance of this letter, we are prepared to immediately enter into a purchase agreement under the following terms and conditions: Site Area Total site area: 17 acres +/- " o Compensation Improved land (EDA property only): $15,500 / unit@ 108 units = $1,674,000 Purchase price to be adjusted according to actual unit count on property as approved by the City of Andover, $20,000 earnest money upon execution of purchase agreement $80,000 additional non- refundable eamest money upon preliminary plat approval by the City of Andover- $100,000 additional cash at closing, seller financing for balance at 6% for two years, Timinq Closing 30 days from Andover City Council acceptance of feasibility study for off-site improvements to the project site, Closing date is anticipated to be February 28, 2005, First takedown of 38 lots for additional payment of $389,000 (release price of $15,500 per lot) upon completion of first lift of asphalt, provided work Is completed no later than August 1, 2005, else closing date of May 15, 2006, , \ '-J Seller's Responsibilities . Provide pad finish grading, clearing, and fill import for all townhome lots on EDA property, Lots to be slab on grade. . Provide boundary and topographic survey, . Provide all off-site (outside the parcel boundaries) utilities, stonn drainage, street lights, and paving necessary to serve the property, including payment of trunk fees or similar charges. . Provide reliance letter for environmental investigations completed by the EDA. . Include phase I takedown property in feasibility report for street and utility Improvements, . Provide property abstract (or similar) and marketable title. . Pay prorated real estate taxes, . Pay current levied assessments, if any. . Pay seller's customary closing costs, l:\Proposals & Market Studies\AndoveMndover Station North\AEDA0816041f01NeumeisterletterOflntenldoc 3564 ROLLING VIEW DRIVE. WHITE BEAR LAKE. MINNESOTA 551 to . 651-770-2981 . FAX 651-770-9273 Mr. Will Neumeister August 16, 2004 Page 2 -, Buver's Responsibilities Pay all costs for platting, wetland delineation, soils testing, phase I environmental assessment (If needed), paving of private drives, landscape and amenity improvements, on-site trails (with credit for park fees), private utilities, street lights, park and, trail fees, engineering design for grading and preliminary improvement plans, and similar costs, Pay assessments for phase I takedown area for all on-site (within the parcel boundaries) utilities, utility laterals and services to each unit, stonn drainage, paving within the rights of way, and area and connection charges consistent with City of Andover policy for city Installed Improvements, Improvement of phase II takedown area by city assessment process or developer installed improvements process at buyer'S option, Pay prorated real estate taxes. Pay buyer's customary closing costs. ContinQencies Buyer's satisfaction with all soils, wetlands, utility service, environmental assessment, and similar investigations; and other matters deemed appropriate by buyer. Contingency period until November 30, 2004, Thank you for your consideration of this letter of intent. " Sincerely, /7, ;j ,/0~ l/-- ~ Gregory W. link Bruggema ropertles, LLC c: Denny Trooien L:\Proposals & Market StIJdies\A.ndover\Andover Station North\AEDAOB1604INNeumeislerletterOflntentdoc ~) Concept Layout ,/ ''\ 'J ~ '" r " 'J L:\Proposa!s & MarXet Studies\AndoveMndO\l8l" Station Nortt1\AEDA081604'NNeumeisterletl:erOfIntentdoc r ) '- 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~ I Will Neumeister, Director of Community Development t~ CC: FROM: SUBJECT: Discuss Andover Station North Marketing Contract--Planning DATE: September 21, 2004 INTRODUCTION Earlier this summer, the EDA directed staff to work on a contract with Mike Mulrooney (Advanced Resources) to assist in marketing Andover Station North, At the last meeting, the EDA directed staff to talk with Mr, Mulrooney to convey that the contract proposal should be modified to include an hourly amount to allow him to be compensated for time spent working with clients that had been developed by the City staff. In cases where the staffhas developed the " lead and no services were sought from Mr, Mulrooney, no compensation would be provided, He '- / has agreed to make changes that he would include in the fmal form of his contract for services accounting for the described changes. The contract is attached. DISCUSSION The term of the contract is written for a one-year period with extension by mutual agreement One additional exclusion should appear on the list of exclusions from the contract and that would be Bruggeman Properties, ACTION REOUIRED The EDA is asked to review the contract with Mr. Mulrooney and provide staff direction whether it should be modified or accepted. Respectfully SUbmi~^- Will Neumeister Attachment Contract from Mike Mulrooney /,\ '-J '" CONSULTING AGREEMENT This agreement is made (date], between the City of Andover, Minnesota [City], a Minnesota Municipal corporation organized and existing under the laws of the State of Minnesota with its principal office located at 1685 Crosstown Blvd. NW, Andover, Minnesota 55304("City"), and Advance-Resources for Development, Inc" of 13868 Crane St. NW, Andover, Minnesota 55304("Consultant"). RECITALS A. City desires to appoint Consultant as its advisor and marketing agent regarding the sale of property located in the area generally described as Andover Station North B. Consultant desires to accept such appointment and to perform all the provisions of this agreement, In consideration of the matters described above, and of the mutual benefits and obligations set forth in this agreement, the parties agree as follows: SECTION ONE. DURATION The term of the agency created shall be for a period of 12 months beginning September 1,2004 and ending August 31, 2005. The term may be extended by mutual agreement of the parties, \ SECTION TWO. CONSULTANT'S BEST EFFORTS Consultant agrees to devote Consultant's professional time and best efforts toward the business of City under the direction of City's officers or representatives, and to conform to the best of Consultant's ability with the rules, regulations and instructions of City now in force or that may be adopted and mailed to Consultant's address. SECTION THREE- NONDISCLOSURE OF CITY'S AFFAIRS Consultant agrees to keep confidential such information as City may from time to time impart to Consultant regarding City's business affairs and customers. Consultant will not, in whole or in part, now or at any time, disclose such information, SECTION FOUR. COMMISSIONS A. Consultant, during the term of the agreement, shall receive a commission from the sale of City's property located in Andover Station North, whether sold by Consultant or by City, or others, except as provided in this agreement. \ ;' '\ B. Consultant's commission on sales made pursuant to this agreement shall be as ,-", follows: Seven percent (7%) of the selling price of the property sold if the buyer is anyone not identified on the exclusion list (Exhibit A), The consultant may be requested by the City to provide development consulting services in relation to the projects proposed by the prospective buyers identified in Exhibit A. In this event the Consultant shall be reimbursed at the normal hourly billing rate of $150 per hour plus out of pocket expenses. SECTION FIVE. WHEN COMMISSIONS PAID Any commiSSIOn to be received under this agreement shall not be paid to the Consultant until the purchaser has made settlement in full with City, either by cash or acceptable notes. SECTION SIX. SHARING COMMISSION The Consultant may give any part of Consultant's commission to any assistant, local Consultant or other person to assist Consultant in making a sale. (' ''\ , I SECTION SEVEN. PURCHASE AGREEMENTS All purchase agreements related to the sale of the City's property shall be structured in the form of a development agreement with the City. The development agreement shall contain all conditions and agreements of every nature whatsoever between the parties to the sale, it being agreed that City shall not be responsible for promises or conditions not specified in the development agreement. SECTION EIGHT. ACCEPTANCE OF ORDERS BY CITY Offers taken by Consultant shall not be binding until accepted by City, SECTION NINE. CONSULTANT'S EXPENSES All expenses for traveling, entertainment, office, clerical, office and equipment maintenance, and general selling expenses that may be incurred by Consultant in connection with this agreement will be borne wholly by Consultant unless the Consultant is requested to provide services in relation to projects proposed by developers identified in Exhibit A . / '\ "'-J " SECTION TEN. COMPLIANCE WITH LAWS Consultant agrees, for the benefit of Consultant's employees and sub Consultants, to comply in all respects with the workers' compensation laws of the State of Minnesota, and to pay the premiums and other costs and expenses incident to such coverage, SECTION ELEVEN. MODIFICATION AND TERMINATION The agency created by this agreement may be terminated by either party with 60 day's written notice mailed or delivered to the last known address of the other party. This agreement covers all agreements between Consultant and City relating to the employment of Consultant. SECTION TWELVE, GOVERNING LAW The laws of the State of Minnesota shall govern the enforcement and interpretation of this agreement. The parties have executed this agreement at the City's offices the day and year first above written. City Jim Dickinson City Administrator City of Andover Consultant Michael J. Mulrooney, CEO Advance - Resource for Development, Inc. \ ;' \ --" EXHffiIT A Thomas Bissen - Copperwood Investments Michael Casey - Nothstar Glass Industries, Inc. Michael Monson - Benson - Orth Associates, Inc. Keith Ulstad - United Properties Tom Palmquist - Ryan Companies Kevin Maas - Amcon, Inc, Mike Quigley - Emmerich Companies, Inc, Tram Builders ,- , '_I r -I '--J ( \ '- . f " '_J :) @ CITY OF NDOVE 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 Directo~ Will Neumeister, Director of Communi1y Developmen~ CC: FROM: SUBJECT: Update on Andover Station South -Planning DATE: September 21, 2004 INTRODUCTION An update is being provided to the EDA on what is happening at Andover Station, as things do change on a regular basis, Overall, everything is beginning to look very nice, Bruggeman Properties townhome models are open for viewing during the Parade of Homes, and things there look very nice, DISCUSSION As you will recall in May of this year the EDA acted on a request from Ryan Construction to modify the covenants to enable a TCF Bank to work out a deal to locate in front of the TARGET store. Since that time, the bank deal has gone away, and now the site is being considered for a 10,000 square foot retail convenience center (see attached site plan sketch). They are contemplating the endcap will be a drive through for a coffee house. This will require the approval by the Planning Commission and Ci1y Council. The developer, Ryan Construction has indicated that TCF was not willing to build on the site any sooner than 2007, therefore they are now pursuing a retail building on the site. We have had recent discussions with the developer and it is likely the TCF will be located in front of the Festival Foods at Quinn Street and Bunker Lake Boulevard. Walgreens is on schedule for completion in early November, and opening before Thanksgiving, TARGET store is on schedule for completion in early December with opening scheduled before Easter. The banners have been ordered for the light fixtures and should be on the light poles by the end of September. We are working on getting irrigation on Outlot E installed so that the grass can be seeded and be ready for when Walgreens opens this fall, This is an ideal time for grass seed to germinate. ACTION REOUIRED No action is needed, this is written to keep the EDA updated on the latest information regarding the progress at Andover Station. Re.spectfully. submitted, /: _ ~/ WIll NeumeIster ,'.tLJL-- z o ~ I- is) oL lLJ > o o z <( z Cl en w Cl l- ll. ... W e () ,:. Z e o d, () I- o ..J I- ::> o z- :II: " -It @ z:n !' ~ z '0 ~~B ~f;.5 L.. ~ <OJ ;:; ~~~ o 3 i ~ VI :;:-' ~U ~H MtH+mJ s z Cl ~ lJ) w ~ ::5 0::: w ~ Z ::J lJ) ...Jw. -(/) ~g we. o::~ ~ ~NDbVE~ 1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: EDA President & Board FROM: Jim Dickinson, City Administrator SUBJECT: Supplemental Agenda Items for September 21, 2004 EDA Meeting DATE: September 21,2004 The EDA is requested to receive the following supplemental items, Item #3, Update on Proposed TIF District 1-4 - Plannini!/ Administration-Finance Receive resolution Item #5, Discuss Andover Station North Residential Land Sale - Plannini! Receive revised "Letter of intent" CITY OF NDOVE 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, City Administrato Will Neumeister, Director ofComm '. Development~ FROM: SUBJECT: Resolution to Establish TIF District 1-4 (SupplementaJ)-- Planning DATE: September 21, 2004 INTRODUCTION The update to the Tax Increment District 1-4 was sent out on Friday without the attached resolution. DISCUSSION Since the EDA reviewed the Tax Increment District there have been slight changes to the overall size of the district. This resolution describes the final form of the District and what will be accomplished with the establishment of the proposed District. ACTION REOUESTED The EDA is asked to review and approve the attached resolution for TIF District 1-4. Attachment Resolution for TIF District 1-4 @ ANDOVER ECONOMIC DEVELOPMENT AUTHORITY 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. I (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 469.1 082, 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 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 Plan 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: L 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 of the 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 EDA 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. 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 21" day of September, 2004, Chair A ITEST: Secretary @ CITY OF NDOVE TO: 1685 CROSSTOWN BOULEVARD N,W,. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANOOVER,MN,US EDA President and Board ~ Jim Dickinson, City Administrato Will Neumeister, Director ofComm ' Development ~ FROM: SUBJECT: Discuss Andover Station North Residential Land Sale (Supplemental))- Planning DATE: September 21, 2004 INTRODUCTION The item sent out on Friday without the attached revised "Letter of Intent". DISCUSSION The report referenced that the number of housing units in Andover Station North would be approximately 108 units and recently Bruggeman Properties reviewed the drawings and found that approximately 114 units will be able to be developed on the EDA parcel. The attached letter is identical except for the number of potential housing units. ACTION REQUESTED The EDA is asked to review and include this revised "Letter of Intent" in the public record. Attachment Revised "Letter ofIntent" diIth" ,;, c , ::~ (.m=h:c dfflh. B RJ-L~ G_ ~ M AJ\~_PJ~ QJ=J~J3__I1J~~~ ~ Building Communities Since 1959 September 17, 2004 RECEIVED Mr. Will Neumeister Andover Economic Development Authority 1685 Crosstown Blvd, NW, Andover, MN 55304 3EP 2 0 2004 CITY OF ANDOVER Re: Andover Station North Dear Will, Bruggeman Properties, LLC is pleased to provide this revised Letter of Intent for the purchase of property north of Bunker Lake Boulevard in Andover as depicted on the attached Concept Layout The probable phasing of the project is also shown on the plan, Upon your review and acceptance of this letter, we are prepared to immediately enter into a purchase agreement under the following terms and conditions: Site Area Total site area: 17 acres +/- Compensation Improved land (EDA property only): $15,500 / unlt@ 114 units = $1,767,000 Purchase price to be adjusted according to actual unit count on property as approved by the City of Andover" $20,000 eamest money upon execution of purchase agreement $80,000 additional non- refundable eamest money upon preliminary plat approval by the City of Andover. $100,000 additional cash at dosing, seller financing for balance at 6% for two years, Timinq Closing 30 days from Andover City Council acceptance of feasibility study for off-site improvements to the project site. Closing date is anticipated to be February 28, 2005. First takedown of 38 lots for additional payment of $389,000 (release price of $15,500 per lot) upon completion of first lift of asphalt, provided work is completed no later than August 1, 2005, else closing date of May 15, 2006, Seller's Responsibilities . Provide pad finish grading, dearing, and fill import for all townhome lots on EDA property. Lots to be slab on grade, . Provide boundary and topographic survey, . Provide all off-site (outside the parcel boundaries) utilities, storm drainage, street lights, and paving necessary to serve the property, induding payment of trunk fees or similar charges, . Provide reliance letter for environmental Investigations completed by the EDA, . Include phase I takedown property in feasibility report for street and utility Improvements, . Provide property abstract (or similar) and marketable title, . Pay prorated real estate taxes, . Pay current levied assessments, if any, . Pay seller's customary closing costs, L:\Proposals & Market Studies\Andover\Andover Station North\AEDA091704WNeumeisterLettelOflntentdoc 3564 ROLLING VIEW DRIVE. WHITE BEAR LAKE. MINNESOTA 55110 . 651-770-2981 . FAX 651-770-9273 Mr, Will Neumeister September 17, 2004 Page 2 Buver's Responsibilities Pay all costs for platting, we~and delineation, soils testing, phase I environmental assessment (if needed), paving of private drives, landscape and amenity improvements, on-site trails (with credit for park fees), private utilities, street lights, park and trail fees, engineering design for grading and preliminary improvement plans, and similar costs, Pay assessments for phase I takedown area for all on-site (within the parcel boundaries) utilities, utility laterals and services to each unit, stann drainage, paving within the rights of way, and area and connection charges consistent with City of Andover policy for city installed improvements. Improvement of phase II takedown area by city assessment process or developer installed improvements process at buyer's option, Pay prorated real estate taxes. Pay buyer's customary closing costs, ContinQencies Buyer's satisfaction with all solis, we~ands, utility service, environmental assessment, and similar investigations; and other matters deemed appropriate by buyer, Contingency period until November 30, 2004, Thank you for your consideration of this letter of intent. Sincerely, '^-- chlink roperties, LLC fl C: Denny Trooien L:\Proposals & Market Studies\Andover\AndoYef Station North\AEDA091704VVNeumeisterletterOflntenldoc Concept Layout L:\Proposals & Mal1<::et studies\AndoveMndover Station North\AEOAOO17QfflNeumeisterLetterOflntent.doc ~S,~::