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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
October 5, 2004 - 6:00 p.m.
Council Chambers
AGENDA
Call to Order
Approval of Minutes - September 21, 2004
Discuss the TIF District 1-4 Development - Finance
Review Schedule/Andover Station North Development Plan/Improvements - Planning
Update/Andover Station North Potential Land Sales - Planning
Andover Station North Design Guidelines - Planning
Discuss Andover Station North Marketing Contract - Finance
Other Business
Adjourn
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1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US
ToJ:
Economic Department Authority
Jim Dickinson, Executive Directo~
Vicki V olk, City Clerk <s
CC:
n.oM:
S'JBJECT:
Approval of Minutes
DATE:
October 5, 2004
INTRODUCTION
T le following minutes were provided by city staff for approval by the EDA:
September 21, 2004
Regular Meeting (Schultz,Larsen absent)
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DISCUSSION
Attached are copies of the minutes for your approval.
ACTION REOUlRED
Tle EDA is requested to approve the minutes of September 21, 2004.
R~spectfully submitted,
t~' (j~
Vicki Volk
City Clerk
Attachment: 9-21-04 Minutes /
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CITY OF
NDOVE
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
September 21,2004 - Minutes
A meeting of the Andover Economic Development Authority was called to order by
Pr~sident Gamache at 6:00 p,m" Tuesday, September 21, 2004 at the Andover City Hall,
1685 Crosstown Boulevard NW, Andover, Minnesota.
Commissioners Present:
Don Jacobson, Mike Knight, Bob Nowak, Ken Orttel,
Julie Trude
Fred Larsen, Ed Schultz
Jim Dickinson, Executive Director
Dave Berkowitz, City Engineer
Will Neumeister, Community Development Director
Others
Commissioners Absent:
AJ so Present:
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J A GENDA APPROVAL
A ld Resolution to Item #3, Update on Proposed TIF District 1-4; add revised Letter of
Intent to Item #5, Discuss Andover Station North Residential Land Sale.
Motion by Trude, seconded by Jacobson to amend the agenda Motion carried
unanimously.
APPROVAL OF MINUTES
S,ptember 7, 2004
C )uncilmember Trude noted that on Page 2 it states that Doug Hanson had been
lcoking__., The name should be Dean Hanson.
Ai/gust 17, 2004
CJuncilmember Trude stated on Page 5, Verbal Update on Andover Station, the name
L~ash should be Liesch.
Motion by Trude, seconded by Jacobson to approve the September 7, 2004 and August
\ 1'7,2004 minutes as amended. Motion carried unanimously,
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An:iover Economic Development Authority Meeting
September 21,2004 - Minutes
Page 2
UPDATE ON PROPOSED TIF DISTRICT NO. 1-4
Mr, Dickinson explained that there have been slight changes in the size of the district
One parcel on the far easterly edge of the proposed district could not be included. All of
the other parcels were able to be included based on the most recent inspections. After the
EC A approves the resolution, the City Council also needs to approve a resolution to
estlblish the district
Mlltion by Knight, seconded by Tmde to adopt the resolution adopting a modification to
the development program for Development District No, 1 and establishing Tax Increment
Fir,ancing District No, 1-4,
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Di:;cussion: Commissioner Knight asked if there has been any discussion about buffering
the parcel to the north. Mr. Neumeister stated that the city wants to make sure it's on
ree ord that we are going to do a good job of buffering it A list of specific uses allowed
wi] be compiled and a contract rezoning would enable the city to limit the uses,
Cc mmissioner Tmde noted that the public needs to be told that we are just creating the
di,trict Mr. Dickinson explained that all proposed uses would need to come back for
ap)roval. Commissioner Nowak asked what the setup cost is, Mr. Dickinson stated it
we uld be about $10,000. The Commission discussed the possibility of someone wanting
retnl and the fact that rezonings would be required for those uses,
Motion carried unanimously, (Resolution R005-04)
Ce mmissioner Trude complimented staff on their involvement
DISCUSS ANDOVER STATION NORTH IMPROVEMENTS
M-. Neumeister explained that Bmggeman would like to develop 158 units oftownhomes
on the parcel. The cost to extend Jay Street halfway is estimated at 2.2 million dollars.
TIe purchase agreement is for 1.767 million dollars which would be paid over two years.
He noted that staff is working on a couple of other potential land sales in this area, The
co,t forJay Street would be covered by those sales. Staff has discussed with Mr.
Po vlitzki the fact that his assessment would be about one million dollars. Great River
Erergy and the EDA would also have some assessments.
M-. Dickinson noted that there are some dollars from the south side that could be
co Jtributed to this parcel.
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M~, Neumeister stated that if we could get commitments from some of the other people
inlerested in the property, the project could be bid in early spring. Mr. Berkowitz noted
that the entire site would be graded at one time.
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EllA Meeting
Se Jtember 21, 2004 - Minutes
Pa ~e 3
Cemmissioner Jacobson asked if the cost to purchase the Great River site had been
figured into the totaL Mr. Dickinson stated no. Great River would sell to a private party
and that would avoid the cost to the city.
Mr. Neumeister stated that originally there was a larger amount of square footage of light
industrial but people were not willing to pay enough to underwrite the costs. There is
no w more retail rather than light industrial. Some could end up to be office space. Those
trJ'es of developments pay more per square foot.
M)tion by Trude, seconded by Jacobson to authorize staff to start the feasibility study
anI begin the 429 process for Jay Street between Bunker Lake Boulevard and Hanson
Be ulevard,
Di ;cussion: Commissioner Knight asked if it would be prudent to run the sewer and
wcter all the way now. Mr. Dickinson stated that staffwants to plan for it. '
Ce mmissioner Orttel noted that we would be placing an assessment of one million dollars
on someone's property who has not requested the improvements. Mr. Dickinson asked if
they resist the assessment would the city be willing to defer it? Mr, Neumeister
ex Jlained that Mr, Povlitzki is aware of the potential assessment and at some point he
:.J will probably be looking for a deferment.
The motion was withdrawn,
M )tion by Trude, seconded by Jacobson to direct staff to begin the plans for the whole
Ja:r Street from Bunker Lake Boulevard to Hanson Boulevard, Motion carried
unmimously.
Mr. Berkowitz informed the Commission that so far there is about $300,000 in cleanup
co its on this site and some cleanup on the south site. That cost does not include disposal,
DISCUSS ANDOVER STATION NORTH RESIDENTIAL LAND SALE
111-- Neumeister noted that Bruggeman Homes has submitted a Letter of Intent to
pu:chase approximately 17 acres for 114 housing units at a purchase price of $1,912,600.
The City would grade the property and do tree removal. Mr, Neumeister asked the EDA
to 'luthorize staff to work with the attorney on a purchase agreement, which would be
CO:1tingent on the change ofland use and rezoning,
Cemmissioner Jacobson noted that under seller's responsibility it says we would provide
pad finish grading and asked if it is required that we do the finish grading, Mr,
Berkowitz explained that it is really rough grading.
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EDA Meeting
SeFtember 21,2004 - Minutes
Page 4
Mo tion by Knight, seconded by Ortte1 to authorize staff to work with the city attorney to
pre:Jare a purchase agreement on the sale to Bruggeman Properties, to begin the Chapter
425 process for public improvements.
Motion carried on a 5-yes, I-no (Trude) vote,
AI\DOVER STATION NORTH MARKETING CONTRACT
Mr, Neumeister explained that Mr. Mulrooney has submitted a contract with an hourly
rate that is not satisfactory to staff. Mr. Dickinson noted that the commission rate is 7%
on property sold if the buyer is anyone not identified on the exclusion list. Staff would
definitely want Bruggeman excluded. Commissioner Ortte1 didn't think Mr, Mulrooney
shculd be paid for something staffhas already done. Mr. Neumeister felt that a non-
exclusive agreement is the way to go.
Co ncensus of the Commission was to go with a non-exclusive agreement and that Clause
B needs to be rewritten.
r '\ UI'DATE ON ANDOVER STATION SOUTH
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Mr. Neumeister informed the commission that there is interest in a developer building a
10,000 square foot retail building in front of Target. Twin City Federal is possibly
coming back and will be in front of Festival Foods.
Moltion by Jacobson, seconded by Knight to adjourn. Motion carried unanimously.
Meeting adjourned at 7:00 p.m,
Rf spectfully submitted,
LCL o'.et
Vicki Volk
City Clerk
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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 Commissioners
FROM: Jim Dickinson, Executive Director
SUB:ECT: Discuss the TIF District 1-4 Development
DAT3: October 5, 2004
INTI ODUCTION
Proputy owners from the Hughes' Industrial Park area and their consulting engineer will be
prese 1t at the meeting to provide the EDA with a conceptual presentation of a development
propc sal for the Hughes Industrial Park
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'--.) ACTJON REOUESTED
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The EDA is requested to receive a presentation and provide direction to the property owners
from the Hughes' Industrial Park,
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CITY OF
NDOVE
1685 CROSSTOWN BOULEVARO 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 Director ~
Will Neumeister, Director of comm~eVelopment l~
CC:
FRO~<:
SUBJECT: Review Schedule/Andover Station North Improvements -- Planning
DATE:
October 5, 2004
INTRODUCTION
Coord nation and planning will be needed for Andover Station North to be on time and a
succes ,ful development, thus the need for a schedule,
DISCI JSSION
The a1tached schedule shows the work involved in getting the planned improvements and
developments off the ground for Andover Station North. As the schedule may change on a
period:c basis, staffwill update the EDA on a regular basis.
ACTION REOUESTED
This i~ an informational update only. The EDA is asked to review the attached schedule.
Attach nent
Schedule for Andover Station North ./'
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Andover Station North Tentative Schedule
(as of Sept 29, 2004)
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Sept. 28, 2004 -- Council orders feasibility report.
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Sept. 28 - Oct. 19, 2004 -- Jeff Caine prepares preliminary plat for EDA
property. Staff review and changes as needed, Revisions then made, submitted
Nov. 2, 2004 for Nov. 23'd Planning Commission meeting.
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Oct. 20-27th, 2004 - Leon Opatz submits prelim. plat/grading plans for
Bruggeman Townhome development. This also will be submitted on Nov, 2nd for
Nov, 23'd Planning Commission,
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Oct. 26, 2004 - Rezoning (for townhomes) goes to Planning Commission.
Nov. 2, 2004 -- Rezoning (for townhomes) goes to Council.
Nov. 16, 2004 -- Council receives feasibility report, authorizes Public Hearing.
Nov, 30, 2004 -- Council holds Public Hearing, approves resolution ordering
improvements, authorizes preparation of plans and specs,
December, and half of January -- Plans and specs prepared by SER
January 18, 2005-- Plans and specs. approved and Council orders ad, for bid,
February 17,2005 -- Bid Opening
March 1,2005 -- Council awards bid.
March 5-12, 2005 - Contractor moves heavy equipment on site.
Preconstruction Meeting the week of March 9_13th, 2005.
Construction work begins March 15, 2005,
First lift of asphalt and all underground utilities are completed by August 1, 2005
on Phase 1 of Jay Street and the first section of 139th A venue into the townhome
development (4 Yz months),
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1685 CROSSTOWN BOULEVARO N,W, . ANDOVER. MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US
EDA President and Board ~
Jim Dickinson, Executive Director ~
Will Neumeister, Director of Community Development {(/L
SUBJECT: Update/Andover Station North Potential Land Sales -- Planning
TO:
CC:
FRDril:
DATE:
October 5,2004
INTRODUCTION
The plan for developing Andover Station North depends upon land sales to be far enough
along by early March, 2005 to enable the "award of a bid" for construction of Phase 1 or
possihly the entire Jay Street and utilities to be constructed on time,
DISCUSSION
The 2ttached table and drawing identifies parcels that staff is working to get commitments
from potential buyers. We are working with them to obtain "Letters of Intent" that would
brought to the EDA for review. Upon EDA acceptance, the EDA's Attorney would prepare
purchlse agreements allowing the EDA and City to move ahead with the "award of bid" on
Jay Street construction.
ACTION REOUESTED
This 's an informational update only. The EDA is asked to review the attached map and
potenjalland sales table and provide direction as needed.
Attachments
Map of Andover Station North ./
Table of Projected Land Sales ./
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Andover Station North Potential Land Sales
Site A. Proposed Payments from Bruggeman Properties:
Earn( st Money Down Payment (September 2004)
Earn(st Money Down Payment - After Prelim. Plat Approval (Late 2004)
Clositg (February 28, 2004)
Augu,t 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):
Site IL Mike Casey (office showroom) 195,300 Sq. Ft. at $3.50
Site C. Local Developer (office showroom) 195,300 Square Feet at $3.75
Site n. Commercial Site (300' x 300') 90,000 Sq. ft. at $7,00
Site I:. Commercial Site (360' x 550') 198,000 Sq, ft. at $7,00
Site r. Local Developer ( 7 acre site) at $3,50 per square foot
Site G. Retail Site East of Ball Fields -- 100,000 Sq. Ft. at $5.00
$683,550
$732,375
$630,000
$1,386,000
$1,067,220
$500,000
$4,<)99',145
TOTAL
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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 comm~ Development UJi,-
CC:
FRO:v1:
SUBJECT: Andover Station North Design Guidelines -- Planning
DATE:
October 5, 2004
INTFDDUCTION
In th~ coming months, there will need to be new design guidelines created for Andover
Station North. The EDA needs to review the Design Guidelines from Andover Station to
deter nine how they may be changed to suit new land uses that were not considered in
Andever Station South.
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'''-.l DISCUSSION
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Some potential buyers in Andover Station North have been interested in building a light
indm trial building that would be considered a "Builders Showcase". This type of building
woul j include various tenants that are somehow related to the home building trades. The
build ing could include all the product and services that may be needed in the construction of a
new home, The current guidelines have some uses that would fall under that type of category.
There are others that staff believes should be included, On the attached page is a listing of the
proposed changes that staff would like incorporated into the proposed guidelines for Andover
Station North. Also, the EDA needs to discuss whether any outdoor storage will be allowed,
or wi II storage only be allowed inside the buildings.
ACT [ON REOUESTED
The ;~DA is asked to review and provide direction on the proposed changes to the Andover
Station Design Guidelines for Andover Station North.
Atta( hments
Original Design Guidelines v
Potelltial Changes to Design Guidelines /
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Andover Station Guidelines (as currently written)
] .12 "Permitted Uses" shall mean the permitted uses of the Property be limited to
(ommunity commercial, office, entertainment, office warehouse and residential as
defined below. The uses shall be limited to those as defined herein. Ifthere is a question
LS to whether or not a use meets the definition, the Economic Development Authority
~ hall make that interpretation. Permitted uses shall be allowed only in the areas specified
(In Exhibit B for which they are specified below. The Block and Lot designations in final
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 R
!=ommunitv Commercial Establishments engaged in commercial operations including
letail 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:
. Apparel and Clothing
. Book Store
. Food and Grocery Stores
. Leather Goods
. Photography Studio
. Sporting Goods
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Permitted uses shall include the following:
. 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
!)ffice Establishments engaged in strictly office operations not requiring loading or
'varehousing facilities. Areas designated for Office uses are shown on Exhibit R The
Jollowing are permitted uses:
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. Scientific and Technology Industries
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. Office and Administrative Facilities
. Financial Institutions
. Conference Centers
. Health and Dental Care Facilities
. Hotels and Motels
. Day Care Facilities
. Veterinary Hospital
!)ffice\Warehouse Establishments engaged in operations requmng both office and
warehousing facilities. Office space shall constitute at least 20% of floor area. There
~ hall be minimal impact upon the surrounding environment by noise, vibration smoke,
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
1,ntertainment Areas designated as Entertainment are shown on Exhibit B. The
following are permitted uses:
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. Theatres
. Restaurants (with or without on sale liquor)
. Health Club
. Private Clubs, Lodges, Halls or Convention Centers
. Indoor Commercial Recreation
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gesidential Areas designated as residential are shown on Exhibit B.
] .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 storage and sales
. Manufacture, storage or sale of explosives or similar dangerous products
. Trucking Terminal
. "Adult Uses" as regulated by city ordinances
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Uses that may need to be added
Builders Showcase Typical Uses (permitted):
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Electrical Sales
Paiut aud Wallpaper Sales
luterior Decoratiug
Carpets and Rugs
Household Appliances
Indoor Showroom
Indoor Limits Retail Sales Accessory to OfficelWarehousing Uses
Other Similar Uses with Indoor Storage
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Uses that may have to be added provided nothing is stored outside:
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Drywall Compauies
Lighting Studios
Cabinet Shops
Tile Shops
Contractors Offices
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Uses that are shown as excluded, that may need to be revisited:
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. Home ImprovemenUBuilding Supply
. Lumber Yards
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1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER~MN,US
TO: EDA President and Commissioners
FRO\1: Jim Dickinson, Executive Director
SUBJECT: Discuss Andover Station North Marketing Contract
DATE: October 5, 2004
At the last EDA meeting the EDA directed staff to work with Advance Resources to negotiate
accepable compensation language for a marketing contract. At the date of the writing of this
report I have talked to Mike Mulrooney from Advance Resources and am in the process of
provi:ling him with language, I will present the language at the meeting or deliver to each
Commissioner before the meeting if time permits.