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HomeMy WebLinkAboutEDA July 19, 2005 / '\ S'\NDbvlf~ 'J 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING July 19, 2005 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order 2. Approval of Minutes (Reg. EDA Mtg. 7/5/05; Exec. Session 7/5/05) 3. Andover Station North Development Improvements Update '\ 4. Discuss Site Plan Layout (Lot 5, Block 3, Andover Station North) V 5. Letters ofIntent (Knowlan/Hanson Proposal) 6. Discuss Finders Fee for Lot Sales (Andover Station North) 7. Other Business 8. Adjourn , " '-.-/ 9\NDbVE~ @ ',...) 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755.8923 . WWW.C1.ANDOVER.MN.US TO: Economic Department Authority CC: Jim Dickinson, Executive Director FROM: Vicki Volk, City Clerk SUBJECT: Approval of Minutes - DATE: July 19, 2005 INTRODUCTION The following minutes were provided by TimeSaver Secretarial for approval by the EDA: \ July 5, 2005 Regular Meeting '--./ July 5, 2005 Executive Meeting DISCUSSION Attached are copies of the minutes for your approval. ACTION REOUIRED The EDA is requested to approve the minutes of July 5, 2005. Respectfully submitted, tLL. {),/& Vicki Volk City Clerk Attach: Minutes \ I '-./ , , DRAFT \J ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JULY 5, 2005 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, July 5, 2005, 6:00 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 Joyce Twistol and Robert Nowak Absent: Advisor to the EDA - Edward Schultz Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer David Berkowitz Others \ APPROVAL OF MINUTES '. / June 21, 2005: Correct as written. MOTION by Trude, Seconded by Knight, approval of the Minutes as written. Motion carried 6 ayes, 1 present (Jacobson). EXECUTIVE SESSION The EDA recessed at 6:02 p.m. and went into an Executive Session. The EDA reconvened at 6:56 p.m. President Gamache stated no decisions were made in the Executive Session. Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 6:56 p.m. Respectfully submitted, . \ Susan Osbeck, Recording Secretary '-.../ , DRAFT "._.1 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY EXECUTIVE SESSION- JULY 5, 2005 MINUTES The Executive Session of the Andover Economic Development Authority was called to order by President Mike Gamache, July 5, 2005, 6:02 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 Joyce Twistol and Robert Nowak: Absent: Advisor to the EDA - Edward Schultz Also present: Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer, Dave Berkowitz Mr. Jason Messner \ Others \J REVIEW APPRAISAL INFORMATION ON LOT 1, BLOCK 1, AND LOT 1, BLOCK 2, ANDOVER STATION NORTH Community Development Director Neumeister noted Mr. Jason Messner was at the meeting to answer Commission questions. Executive Director Dickinson stated the information included the Play Ventures of Minnesota lot. That property was identified in the appraisal of having a value of $495,000; originally it was given a value of close to $895,000 and then based on some encumbrances on the property relative to being close to the WDE site, the 500 foot line, the 200 foot line and in the Andover Station design guidelines has been reduced down to about $495,000. He stated the parcel in total is 6.85 acres; net of easements is 4.31 acres. Mr. Dickinson stated a lot of the questions relative to this were in regard to access and value. He noted the property is along Hanson but will be accessed at 139th Lane. Commissioner Orttel noted a recent sale adjacent to this was not included because the adjacent property owner bought the property and therefore it was not a reasonable compo He wondered if this was true. Mr. Messner stated it was included in the report. He stated page 18 and page 20 '. list the comparable land sales. He stated Beberg Landscaping bought the adjacent property from '-./ Kottke Bus for $7.45 a square foot. He indicated that only that would be the portion between Jay Street and Hanson Boulevard. Commissioner Orttel asked ifthe recent sale of the mini storage was used. Mr. Messner stated ~J Special Andover EDA Executive Session Meeting Minutes - July 5, 2005 Page 2 he has not looked at this because he did not know if the improvements would be demolished. Commissioner Trude asked if this would vary had they looked at it because it does maintain access directly to Hanson based on what the County has told them. She wondered if the value of the land would be affected by that. Mr. Messner stated it would but he was not sure the buildings would be demolished so he did not include it in the appraisal. Commissioner Orttel stated on page 18, regarding access, the terrain is actually eight feet below grade to Hanson and not twenty feet. Mr. Messner stated he was basing his numbers on a proposal he was given and he based it on the contours as shown from Hanson to the elevation depths. Mr. Berkowitz stated the final elevation is actually ten feet below grade to Hanson Boulevard. President Gamache asked if the difference of twenty feet to ten feet would have any affect on the price. Mr. Messner thought it would. Commissioner Jacobson asked regarding the power line easements, how they evaluate the . "- property under them. Mr. Messner stated on page 22 of the appraisal, thirty-seven percent of the \J site is encumbered by the permanent power line easements but what is not shown to be encumbered as part of that number is the additional 200 foot buffer area that lies even beyond the power line easements. Net of all of the areas is 115,627 square feet or about thirty-nine percent of the gross site area which is unencumbered by at least those specific restrictions but most of the balance is still encumbered by the five hundred foot buffer requirement. Mr. Messner discussed how he came up with his valuation of the site. He indicated he made a downward adjustment of sixty percent to meet the comps. Commissioner Orttel asked if the $2.63 a foot was net of easements. Mr. Messner stated he based this on total site area. Commissioner Orttel stated on page 24 it states they are getting $1.66 a foot for the total site area which is less than the cost of their utility and $2.63 after they take out the easements. Mr. Messner stated he was at $5.00 a square foot gross before they deducted the cost of the vapor barrier and then $4.95 a square foot net of the power line easement. Commissioner Orttel stated in the information it indicates $3.00 per square foot net of the power line easement. Mr. Messner explained how he came up with the amount per square foot for the site. \ I '..J Commissioner Orttel asked ifthe fact that the lot is located by a traffic signal impacts the site. Mr. Messner stated it was. President Gamache asked if they had a right in coming off of Hanson onto Jay Street with an , \ Special Andover EDA Executive Session Meeting \.._--j Minutes - July 5, 2005 Page 3 entrance to the site, would this help the price. Mr. Berkowitz stated the right in would be in a right turn lane to 139th which they do not usually do. Commissioner Knight asked if a road could be brought in between the white and pink. Mr. Berkowitz stated there is a median between the white and pink areas. Commissioner Jacobson asked if it would make a difference. Mr. Messner thought it would and may increase the price by fifty cents. Commissioner Trude understood that land closer to a light and access to a major road would be a selling point for almost any parcel and then the deduct would be any ofthe negatives. Mr. Messner stated that was correct. Commissioner Trude wondered ifit is more valuable to have retail next to it. Mr. Messner stated having an anchor next to the parcel is always a good thing. Another thing that also helps is rooftops (residential). With the landfill to the north and ball fields consuming a fair amount of the land, industrial is not rooftops. Being on the going home side of the street is worth more than being on the going to work side. \ -V Mr. Messner stated the major problem with lot 1, block 1, is the methane and deed structure. What he did not get into is if the lender will want some type of insurance that they do not get a property that is not worth much. There is also the stigma associated with this property and he did not deduct this. The geometries consultant did indicate that there may be a cheaper alternative than what is in the report assuming that they will be able to park within the two hundred foot buffer area. If they put in a venting system under the parking lot the MPCA will sign off on it. Instead of a venting system under the parking lot and alternative would be that they could build a trenching system north of the property. Commissioner Orttel wondered if the trench is the current standard. Mr. Messner indicated it is not. He is not currently aware of a building where a venting trench has been installed. Usually the venting is placed under the site. Commissioner Trude wondered if a parking lot would be able to go within the two hundred foot zone. Mr. Messner indicated he did not know. Mr. Berkowitz stated they are currently looking at fences and that is the reason parking is not allowed. He stated no permanent structure could be placed there. Any structure has to be outside of the two hundred foot buffer. Mr. Neumeister stated they are assuming a parking lot will be allowed there as long as it is properly vented. \ Commissioner Trude wondered if it would be hard to get a franchise to come in to a site like this. '-j She wondered if it is an issue for the bank or investor. Mr. Messner stated it is. He thought it is less of an issue today than it was ten years ago. He noted that was why he has not made any discount for environmental insurance. , " Special Andover EDA Executive Session Meeting \.~) Minutes - July 5, 2005 Page 4 Commissioner Orttel wondered if there were more lots instead of one lot, would the price go up. Mr. Messner stated it would because they will fmd more users for the smaller lots than for one large lot. Commissioner Nowak thought for this price they could make another ballfield because it would be cheaper to do this. Commissioner Trude wondered if this made sense to do this because there are so many environmental issues associated with this. She wondered if the soil is fine on this site. Mr. Berkowitz stated the soil is not contaminated. Commissioner Trude thought this is all public perception. Mr. Messner did not think people's perception would prohibit them from going to whatever is there. DISCUSS WITH APPRAISER (MR. JASON MESSNER) HIS VALUATION APPROACH TO LOTI, BLOCK 1, AND LOT 1, BLOCK 2, ANDOVER STATION NORTH Mr. Neumeister stated the appraisal report shows that its gross land area is 7.27 acres and only about '. half an acre is taken up by easements. All the same comparables were used. There was a price '-J average of$3. 76 to $5.13 per square foot. The average being $4.34 with his adjustments on page 23 the weighted average of$3.88 per square foot and the summation indicates $4.00 a square foot. It is not affected by the setback issues or the MPCA. Commissioner Trude wondered if this is still twenty feet below grade to Hanson. Mr. Berkowitz stated they are looking at ten to twelve feet. Mr. Messner stated what affected the value of the properties is the finished grade height and the access. He stated if they could get a second access onto the site it would be a plus. Commissioner Jacobson asked if there is a reason for the adjustment of five percent for the power lines. Mr. Messner stated a significant amount of the property is unencumbered by the power lines. The south portion he made a small adjustment for the power line easement. Commissioner Jacobson asked if having water by the building as a view would be positive. Mr. Messner stated it would if it was residential or a business with an outside patio area. He stated if a portion of the wetland could be used for green area or open space it would increase the value. Commissioner Trude asked on this property, the most valuable land would be to the south by the signal light. Mr. Messner thought Bunker Lake Boulevard is considered the main commercial entrance. '-..-) Mr. Dickinson asked if the signage entitlement added to any value. Mr. Messner thought if at any time they could provide signage, it would increase the value of a parcel not visible to Hanson or Bunker. Commissioner Jacobson asked on this parcel if they would change the lots from two to four or five, \.. ) Special Andover EDA Executive Session Meeting Minutes - July 5, 2005 Page 5 would they see an increase in value. Mr. Messner stated they would. Commissioner Trude wondered if they were looking to market this for industrial if five acres was the minimum mass they could have. Mr. Messner stated beyond a certain point, four or five acres may be beyond the point of industrial. Commissioner Orttel asked regarding zoning, it does not matter what the end use will be, the end price will remain the same. He wondered if this was correct. Mr. Messner suggested this to be all zoned the same. It is not the zoning that matters, it is the location. Commissioner Orttel wondered how this is factored in when an appraisal is done. Mr. Messner stated he looked at the site as more of a service oriented/industrial area instead of retail. Mr. Messner stated what he has attempted to do is to estimate what would be the best price. Mr. Neumeister noted the conditions placed on these parcel which were done in 1989. He thought there may be ways to work with these and there may be new written requirements that come into effect. Mr. Dickinson stated the MPCA is open to negotiations. '. / The executive session adjourned back to the EDA meeting at 6:55 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary '-_/ CD , ,,) 1685 CROSSTOWN BOULEVARD N.W. . 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 FROM: Will Neumeister, Community Development Director ~ David D. Berkowitz, City Engineer]:)"'}:)};; SUBJECT: Andover Station North Development Improvements Update DATE: July 19,2005 INTRODUCTION The public improvements for Jay Street are right on schedule. Some sections are ahead of schedule such as the first two hundred feet of Jay Street that is now open to traffic. The contractor will be completing the balance of the work for Jay Street by late August or early September. DISCUSSION Staff met with the City's consulting engineer (SEH) to begin the plans for the utility and street work to , complete the needed improvements to serve the southerly twenty acres. The initial meeting was held , on Friday, July 8th and SEH was instructed to complete the plans as soon as possible as we are , ~ ) pursuing the possibility of adding this work as a change order to the original contract. The City Engineer, David Berkowitz, has talked with North Pine Aggregate, our prime contractor, and they are interested in doing the work under the original contract. If the contractor is interested in doing the work under the current contract prices staff will recommend the project move forward as a change order to the current project. As soon as the street plans are finished in a form that we can approach the County, staff will begin to formally gain approval from Anoka County Highway Department relative to the right in access on Bunker Lake Boulevard. A verbal acceptance of this access point was given last fall, with the understanding that it will be a right in only and the bank entrance will be removed. It is staff's intention to gain County approval of the access into the site from Bunker Lake Boulevard. By turning this around as soon as possible, it will potentially save money and the work will be completed this fall. To continue aggressively marketing the sites at the southeast comer of the redevelopment area these improvements are needed as soon as possible. No further action is needed from the EDA to authorize the additional construction work to commence, since the EDA (Executive Director) has authorized the waiving of the public hearing. ACTION REOUESTED No action needed, this is an informational update as to the progress and construction activity at Andover Station North. Respectfully Submitted, C)~M012a ~~~ " ~k~<&~~ - 0 Will Neumeister David D. Berkowitz \:::.~ 6J , C I T Y 0 F , NDOVE '--J 1685 CROSSTOWN BOULEVARD N.W. . 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 FROM: Will Neumeister, Director of Community Development utlv--- SUBJECT: Discuss Site Plan Layout (Lot 5, Block 3, Andover Station North) DATE: July 19, 2005 INTRODUCTION At a recent meeting of the EDA, the site plan for the southerly 20 acres was discussed. Although there was discussion, no conclusion was reached regarding the site plan for the site known as Lot 5, Block 3. The subject property is approximately 3 Y, acres in size and the site plan concept that was discussed was that the property could be made into two sites. It was suggested that Louis Rudnicki could potentially build a retail strip center that would include a dance studio, and dry cleaners on the northerly portion and Bruce Knowlan and Mike Hanson could build on the southerly portion. Mr. Rudnicki has indicated he would like to get feedback from the EDA regarding whether the EDA would require that the building he is interested in building be connected to the one that is being proposed by Bruce Knowlan and Mike Hanson, or whether it \ could be a free standing building. , . , ~ DISCUSSION As expressed at the last EDA meeting on this subject, staff is of the opinion that the site/building plans should have a building that is an extension of the larger retail center that Bruce Knowlan and Mike Hanson are planning to pursue. This could be done with a common wall or there could be a small separation between, but they should both be built of same materials and appearance and appear to be coordinated. The primary reasons for this recommendation are: 1. Visibility of the future building on the site to the north would be better. 2. Visual impression of one unified building compared to two separate buildings. 3. Traffic flow and site plan layout is better as one building rather than two smaller buildings. ACTION REOUESTED The EDA is requested to review the two attached schematic site plans and information contained in this report and recommend a course of action to Mr. Rudnicki as well as Mr. KnowlanlHanson regarding the site plan/building configuration that the EDA would like to see constructed on Lot 5, Block 3, Andover Station North. To help staff in negotiations with Mr. Rudnicki, the EDA should also discuss: 1.) Whether a dry cleaner will be a user that will be acceptable to the EDA on this site; and 2.) Whether the staff should continue negotiations with Mr. Rudnicki regarding the northerly 175 feet of the subject lot. He has indicated that he will work with putting a new letter of intent together but he needs to know whether there is acceptance of the dry cleaners and whether the price he had previously offered is acceptable to the EDA. Respectfully SUbm~ Will Neumeister / \ '--oj Attachment - Conceptual Site Plans Cc: Bruce Knowlan/Mike Hanson, 1921 Coon Rapids Blvd., Coon Rapids, MN 55433 Louis Rudnicki, 2711 Dahlia StreetNW, Oak Grove, MN 55011-9319 -YCON'7:fl"::"-n: ::.~7ftAN'U' . ~- .. ,'f "c.e.. ' ,.., Q". .. . - '- J ~CAkTefZ.NAT6~ I} ,. ,-------- ------------1 / I ---636.~--- I I I I I 0,,0 I I ----------------- I W6HT 'J}{r;ti5fr</AL;. ?;rfE I I I I'" 1 ~I '" ~I I~ . I'" , "', $: I I I I . I I Z I I I ...~,.w:a. 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WWW.CI.ANDOVER.MN.US TO: EDA President and Board CC: Jim Dickinson, Executive Director FROM: Will Neumeister, Director of Community Development wL SUBJECT: Letters of Intent (Knowlan/Hanson Proposal) DATE: July 19,2005 INTRODUCTION There has been a new "Letter of Intent" received related to a lot located in Andover Station North, located directly east of First Regents Bank (lot 5, Block 3, Andover Station North). The persons submitting the letter of intent are Bruce Knowlan and Mike Hanson. They explain in their letter that they would like to develop a retail strip center that would be approximately 20,000 square feet in size, of which 10-12,000 square feet would be the new , \ location for their Northgate Liquor store. EDA needs to review it and provide staff direction OJ on whether there is interest in preparing purchase agreements on this particular parcel for this use. DISCUSSION Provided the EDA agrees to the terms and conditions contained in the "Letters of Intent", the EDA would need to authorize the City Attorney to prepare purchase agreements with the individuals that have shown interest in purchasing the parcel of land in Andover Station North. ACTION REOUESTED Staff requests the EDA to review the newest "Letter of Intent" if further discussions are needed relative to land price, the EDA may be advised to move to Executive Session. If the EDA feels this is a proposal that they would like to accept, then they should direct the City Attorney to prepare a purchase agreement. Respectfully submitted, ~ Will Neumeister , \ \J Attachment "Letter of Intent" from Bruce Knowlan and Mike Hanson ~ . 0 TO: EDA President and Board From: Bruce Knowlan, Mike Hansen! NorthGate Liquors Subject: Letter of intent to purchase "SOUTH PORTION OF LOT 5 BLOCK 3. We propose to build a 20,000 sq. ft, Upscale Retail Center similar to that in attached photo. This center would include an Off-Sale liquor store which we will move from Andover Crossing with the understanding that no other off- sale liquor store will be built on current or former EDA land, Also with the understanding of a "Right IN Right Out of some form onto Bunker Lake Blvd. Purchase Price: We would agree to purchase approximately 97000 sq. ft, at $7.89 a sq. ft. which would include the improvements outlined in the feasibility report, U Payment of purchase price. The purchase price will be paid in the form of a cashiers check for the amount agreed upon at the time of closing, Earnest Money: Within two(2) business days following the execution of the Purchase Agreement by both parties Purchaser will submit a earnest money deposit of $5000,00 to the title company of the purchasers choice to be held as an initial deposit in an interest-bearing account at the direction of the purchaser, with the interest to be for the benefit of the purchaser pending completion of the transaction or other termination of the Purchase Agreement. Due Diligence: Purchaser will be afforded a Due Diligence period of 120 days from the date of delivery to the Purchaser of the last Documents for inspection (including, without limitation, soil and environmental analysis, physical condition of the 0 property and engineering inspections, review of the Documents of Inspection, and such other investigations and inspections as Purchaser in its ) . / ' sole and absolute discretion may require,) Purchaser may terminate the ,--) Purchase Agreement and receive a refund of the Earnest Money(together with the interest accrued thereon) if as of the end of Due Diligence Period, Purchaser is not satisfied, in its sole and absolute discretion, with the results of its investigations and inspections. Our Timeline On This Project: We would hope to proceed as soon as possible and start getting tenants lined up now with an approximate construction start in mid to late 2006. Thank you for your time and we look forward to working with you. Bruce Knowlan and Mike Hansen ~Y Jl~4---- 7,.- ~-- 0 S '\ , '--/ 0 r i , , ( I I ! , ! , ! , I t ! , ( ~ ~ il '$1 ' fl ,I I , i: I' '1 I: l' 'I 'I 1,,- J Ii " i , , " \.. @ , 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 CC: Jim Dickinson, Executive Director FROM: Will Neumeister, Director of Community DevelopmentJ.- SUBJECT: Discuss Finders Fee for Lot Sales (Andover Station North) DATE: July 19, 2005 INTRODUCTION As has been discussed in the past, the City will enlist help in marketing the land in Andover Station North. Recently there has been an inquiry from a local real estate agent that is interested in helping locate a buyer for the restaurant site north of First Regents Banle There is a need to identify what type of finders fee is the EDA willing to offer this agent should a prospect that he brings forward actually buy the land. Also would a "finders fee" be extended , to anyone that is able to bring in a prospective buyer that purchases land in Andover Station " North? This needs to be discussed as there have been inquiries regarding this issue from others who are interested in helping find a buyer (i.e. City staff, or acquaintances of staff). DISCUSSION The benefit of having others enlisted to help market the property is that the word of mouth and personal acquaintances can help get the area developed much faster than one ad in a publication or having one person begin to make all the contacts. It is staffs recommendation that the EDA offer a "finders fee" as has been discussed. If there is interest in doing this, the . EDA should approve a motion stating what percentage of a sales price will be offered, and whether it will be offered to all people that make contacts that result in a land sale. ACTION REOUESTED Staff requests the EDA to discuss if there is interest in offering a "finders fee" for land sales in Andover Station North. If there is interest, please establish (in a motion) the percentage that will be paid, who is eligible to receive the "finders fee" and under what terms it will be paid. If the EDA desires more time to discuss this, there is no urgency to this matter and it can be continued to the next meeting to allow time for EDA members to think about this. Respectfully sUbmi~ , Will Neumeister M \.. , "