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HomeMy WebLinkAboutSP EDA June 3, 2003 CITY OF ANDOVER .F '\ , ~/ 1685 CROSSTOWN BOULEVARD NW,. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVERMN.US CI1Y OF ANDOVER ECONOMIC DEVELOPMENT AUTHORI1Y SPECIAL MEETING June 3, 2003 - 6:00 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes -April 15, 2003 3. United Properties Commercial Site Verbal Update - Planning 4. Receive Verbal Update on Andover Station Residential - Planning 5. Receive Verbal Update on Andover Station North Mitigation Plan- \. Engineering " ,/, 6. Discuss Lease Revenue Bonds (Supplemental) - Finance 7. Receive Update on EDA Property Acquisition of Great River Energy Site - Planning 8. Other Business 9. Adjourn , , ./ @ I 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CLANDOVER.MN.US TO: EDA President and Commissioners CC: John Ernr, Exooutive DirectO'~ FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: June 3, 2003 INTRODUCTION The following minutes have been provided by staff for approval by the EDA: April 15, 2003 Regular Meeting (Larsen, Schultz absent) I Copies are attached for your review. ACTION REQUIRED The EDA is requested to approve the minutes of the April 15, 2003 meeting. Respectfully submitted, ilL. ()~ Vicki V olk City Clerk / / 'A Special Meeting of the Andover Economic Development Authority was called to order' by Vice President Julie Trude at 5:32 p.m., Tuesday, April 15, 2003 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Ken Orttel, Don Jacobson, Mike Knight, Robert Nowak, Mike Gamache (arrived at 5:35 p.m.) Commissioners Absent: Fred Larsen, Ed Schultz (advisor to the EDA) , Also Present: Jim Dickinson, Finance Director Dave Berkowitz, City Engineer Will Neumeister, Community Development Director Others APPROVAL OF MINUTES Motion by Knight, seconded by Jacobson to approve the minutes of March 11,2003 as presented. Motion carried on a4-yes (Jacobson, Knight, Nowak, Trude), I-present (Orttel), I-absent (Gamache) vote. (president Gamache arrived at 5:35 p.m. to chair the meeting.) ANDOVER STATION WETLAND MITIGATION PLANIREVISED SITE PLAN Mr. Berkowitz explained that they have been working with United Properties, RLK Kuusisto and the Coon Creek Watershed District to move the wetland from Andover Station to Andover Station North. Joe Samuel, RLK Kuusisto, noted that there are 5.6 acres of wetland that need to be mitigated and they have relocated that into three different wetland areas. Mr. Samuel presented a sketch showing where the ponds would be located. Mr. Berkowitz stated that the city is looking at redeveloping Prairie Knoll Park If there isn't a wetland in that area we may be able to mitigate so we could get some credit for Andover Station North. Commissioner Trude didn't feel that the city should start trading off wetlands as was done inKelsey Park for the high school. / Mr. Neumeister stated that part of this process is to determine the cost. Mr. Special EDA Meeting / April 15, 2003 - Minutes Page 2 Samuel was contacted by United Properties to do this analysis. The last step is that some dollars will be put together for Ryan Companies. Mr. Samuel explained that this is purely conceptual. Based on information SEH prepared for the city, they have come up with this concept. Next they would look at the grading on the site. Commissioner Jacobson suggested that the power company be contacted regarding the right-of-way. Commissioner Trude asked if this is also a site plan. Mr. Samuel noted that one of the concerns a month ago was what the site is going to look like. Commissioner Knight felt that this plan doesn't have any character. Mr. Dickinson explained that creation of wetland mitigation areas is what the city would be providing. United Properties would commit to the cost of the wetland mitigation plan. reconfiguring the pond and re-grading Andover Station South. The city would get 125,000 square feet ofre-saleable land which would generate $470,000 ofland sales, the presence of another anchor business and adequate cash flow. If this goes through. we would be in the black. Commissioner Jacobson asked how far weare from a final decision from Target. Keith illstad, United Properties, stated the only issue left is a dispute over the definition of produce. Until the city decides where they want the wetland, they can't figure out how much this is going to cost. Commissioner Jacobson preferred the original plan but understood why it is being done this way. Commissioner Knight agreed with Mr. Jacobson. Consensus of the EDA was that the proposed plan was satisfactory. Commissioner Nowak expressed concern about what the property is going to look like when finished. Mr. Berkowitz stated that at the next meeting United Properties could provide a couple of different site plans. ANDOVER STATION RESIDENTIAL DEVELOPMENT Mr. illstad noted that there have been a lot of potential residential candidates interested in this site 'and a lot was learned during the process. Bruggeman Homes is aware of all of the problems with the site. I Special EDA Meeting I April 15, 2003 - Minutes Page 3 Greg Schlink, Bruggeman Homes, stated they are pleased to be included in this project. At the present time, they are working on Constance Comers, a new development in the city. He noted that he has experience with brownfie1d sites, President Gamache asked which brownfield area Mr. Schlink was involved in. Mr. Schlink stated that it was in Nevada. He also noted that they are working on a development in Forest Lake. The proposal here is for two-story units, which will not be lined up so as to soften the look. Commissioner Jacobson stated that he went to look at the Forest Lake development which is a vast improvement over the last proposal the EDA looked at. However, he didn't think there is enough visitor parking in this proposal. Mr. Schlink explained that the public street would allow for on-street parking. The units would sell in the $160,000 to $180,000 range and could be built with basements. The buyers for these units usually are young professionals, not families with children. It was suggested that the developer proceed with a sketch plan and hold a neighborhood meeting so that the neighbors are aware of the proposal. I APPEAL REQUEST - LINDER'S GREENHOUSE SPECIAL USE PERMIT Mr. Dickinson explained that Linder's is appealing the EDA's previous decision to deny a Special Use Permit for a temporary greenhouse at Festival Foods. Pete Linder stated that they appreciate the opportunity to be able to come back with their request. At the last EDA meeting there were concerns about this type of operation. He explained that they have to compete with other people who don't put their names on the business. They have been in operation for 90 years, He didn't feel that the garden center would make the parking lot congested and there is good traffic flow. They will have approximately 40 locations this year and they have never been asked to move out of a site. They would be in operation from approximately April 15th until after the 4th of July. Commissioner Jacobson asked how they would answer to a business that is here year around and pays taxes. Mr. Linder noted that competition makes other people compete harder. They have never run a competitor out of business. They are not a discount vendor; their prices are the same throughout the whole metro area Commissioner Trude noted that there are two nurseries that are within a mile of Festival Foods. One of the issues is that the city sets very strict standards in new developments. Special EDA Meeting I April 15, 2003 - Minutes Page 4 Mr. Neumeister informed the EDA that if this were to be allowed the covenants would need to be modified as they now contain specific requirements about no outdoor storage. Commissioner Trude stated that she would not support a decision to allow this to occur. Commissioner Jacobson stated that when the original request was made he voted against it but he would be willing to change his vote as this will only be in the city for 2-1/2 months. Chris Beberg, Beberg Nursery, expressed concern over the close proximity of the proposed operation to his nursery. He stated that he has invested over a million dollars in the city and this would have an impact on his business. Ifhis profits go down, that will have an impact on what they can do to their property Motion by Trude, seconded by Nowak to deny the request of Linder's. Commissioner Orttel explained that legally the EDA is not allowed to restrict business based on competition. Vote on motion: Yes - Knight, Gamache, Trude, Nowak; No - Jacobson. Orttel. Motion carried. / APPROVE ANDOVER STATION MAINTENANCE QUOTES Motion by Trude, seconded by Knight to authorize the low quote from Bleeker's for maintenance of Andover Station. Motion carried unanimously. REVIEW ALTA SURVEY - GREAT RIVER ENERGY PROPERTY Commissioner Jacobson stated that he would refrain from participating in the discussion as he has a conflict of interest. Mr. Neumeister explained that the site contains approximately 56,740 square feet of buildable property that is not impacted by easements. In 2002 an appraisal placed the value in the range of $4.50 to $5.00 per square foot. Mr. Neumeister presented two scenarios of proposed development of the site. Consensus of the EDA was to continue negotiations with Great River Energy. PARTICIPATING BUSINESS PROGRAM Because oflack of time, this item was tabled to the next EDA meeting. Special EDA Meeting April 15, 2003 - Minutes j Page 5 Motion by Trude, seconded by Jacobson to adjourn. Motion carried. The meeting adjourned at 6:55 p.m. Respectfully submitted, U.()~ Vicki V olk City Clerk CD 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CLANDOVER,MN,US TO: EDA Board Members CC: John Erar, City Administrator FROM: Jim Dickinson, Finance Director SUBJECT: Discuss Lease Revenue Bonds (Supplemental) - Finance DATE: June 3, 2003 INTRODUCTION Information for this item will be presented at the meeting, DISCUSSION To be discussed at the meeting , / ~ (j) CITY OF ANDOVER , " 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW,CLANDOVER,MN,US TO: EDA President and Board CC: Jim Dickinson, Finance Director FROM: Will Neumeister, Director of Community Development cd- SUBJECT: Receive Update on EDA Property Acquisition of Great River Energy Site--Planning DATE: June 3, 2003 INTRODUCTION John Dahl, McKinzie Metro Appraisal, recently updated the appraisal that was done about one year ago for a portion of the Great River Energy property located along Bunker Lake Boulevard. As you will see, the appraisal takes into account the existence of power line easements and the land that was dedicated for Bunker Lake Boulevard. The assumptions that were made one year ago indicated a parcel size of approximately 270' x 350'. The proposed parcel size currently shown on the concept drawings is 364' x 350' therefore the valuation numbers shown in the current updated appraisal report are short by about 33,950 square feet multiplied by $4.86 per square foot ($164,997). The valuation in the appraisal report needs to be increased by nearly that whole amount to accurately reflect the land value of the proposed site. Some adjustment (-15%) , was allowed by the appraiser for the power easements and lack of direct access to Bunker. That adjustment , in the appraisal did take into account easements may be used for parking purposes and the lack of direct access to Bunker Lake Boulevard. The site will need to be marketed to a destination user that does not depend upon a quick in/out access, because the parcel will be accessible only from the end of a long dead-end cul-de-sac. DISCUSSION Adjusting the appraised value of the parcel (with the upward adjustment that is needed because the proposed parcel is larger now) it appears the site valuation is approximately $473,497. This parcel will be very difficult to attract a user to, given the constraints of the lack of direct access to Bunker and the adjacent power substation. Staff has evaluated this and recommends the EDA not move forward on this Ilurchase due to the cost and the constraints. ACTION REOUIRED The EDA is asked to review the appraisal information and determine if they would like to pursue purchase of the site from Great River Energy. Respectfully submitted, A/L Will Neumeister Attachment Updated Real Estate Appraisal for Great River Energy Site Previous Report on Usable Area of Site (April 15,2003) FROM : MO<I NZ I E METRO APPRA I SAL PI-ONE NO. : 651 4269458 Ma~. 28 2003 12:38PM P2 White Bear Office ~~~~~ Woodbury Office 4740 Wa.s.hinglon Square Suite 200 7650 Currell Boulevard Suile 300P White Beat Lake. MN 551 10 McKinzie Metro Appraisal Woodbury, MN 55125 (65')426-7'" (651) 738-'017 , Fall.: l6S1 )426-9159 www.mcki~;emetroappraisa[.com Fax: (55') 426-9458 May 28, 2003 Mr. Will Neumeister Community Development Director City of Andover 1685 Crosstown Blvd. NW Andover, MN 55304 RE: Update ofappraisal dated March 14,2002. This update applies only to lot A. which was appraised at $459,300. Dear Mr. Neumeister, This leller is intended to be an addendum to and a part of the above referenced appraisal In the original appraisal I was given a hypothetical lot size of270 ft, x 350 ft, = 94,500 sq. ft. This apparently included existing right of way for BUIlker Lake Boulevard of56.685 ft. x 350 ft. = 19,840 sq. ft., leaving a net before size of74,660 sq. ft. Assuming the value per square foot remains the same, this would give a net value of 74,660 sq. ft. @$4.86per sq. ft. = $362,848 - rounded to $362,900. In the original appraisal I used a per annum adjustment for time, on the land sales, of 5%. This adjustment is e".-plained in the original appraisal. It is my opinion that a 5% per annum adjustment would still be appropriate. This adjusts the appraised value forward from the original date of March of2002 to May of2003. Adjusted original value of $362,900, present value, rate 5%, time 1.17 years = future value in May of2003: $384,284. I Since the original appraisal, the city has advised me that there are two power easements now in place, one nms north/south through the property measuring 150 ft. x 314 ft. = 47,100 sq. ft~ leaving a narrow sliver ofunbuildible land along the east boundary that is 15 ft. x314 ft. - 4,710, sq. ft. The other power easement is adjacent to the northwest comer of the larger one oUllined above and is 1,350 sq. ft. The easements would not allow buildings but would allow parking. Please refer to the sketch of "Parcel 4 " showing the Ioclrtion of these three items. In addition, the original appraisal contemplated access to the property from Bunker Lake Boulevard. The city now advises lhat access will be from a cuI de sac at the northwest comer of the property. Tbis most likely means that the use would be for office or other destination use rather than an impulse "drive in" that Bunker Lake access would If'llTERNATIONAI.. $OCIe;TY or APfl'R,lIS~RS . A"fIUCAN RIG:HT OF' WAY ASSOCIATION w-...\.&.............~ - ' ..- Sincerely, ~~ Certified General Real Property Appraiser (State of Minnesota) License #400 1146 McKlNZIE METRO APPRAISAL , 1ZD/ad MAY 28 2033 13:41 651 4269458 PAGE. 02 FROM : MCKINZIE METRO APPRAISAL PHONE NO. : 651 4269458 May. 28 2003 12:41PM P6 , / accamodate. Attached are two sketches, provided by the city, 0 f possible development plans. These show the cul de sac at the northwest corner. The access change and the easement additions result in a diminished value of the site. It is my opinion that a reduction of 15% in value is the result. Conclusion Revised Value: $362,900 Reduction in Value caused by easements and accesS @ 15%: - 54.435 Net $308,465 Rounded $308,500 N ore: The question of access to the Great River Energy property adjacent to the subject, on the east, has been raised by the city. They currently have direct access off from Bunker Lake Boulevard to the substation site. There was concern, because it is close to the Hanson Boulevard _ Bunker Lake Boulevard intersection, that the county may want it , removed. I talked to a staff member of the Anoka County Highway Department who was / familiar with the site. She advised me that no plans had been made to remove the access and that it would be premature to make plans based on the assumption the access may be lost. I also talked with a representative of Great River Energy about the loss of direct access and asked if the access were lost could they come in from the proposed cuI de sac, crossing to the north of the subject. Although they bad not given consideration to that idea it appeared workable. These issues may have to be addressed in the future but there was nothing specific to consider noW and I have not considered the access situation in this addendum. Sincerely, Certified General Real Property Appraiser (State of Minnesota) License #4001146 McKINZIE METRO APPRAISAL JZD/ad MAY ?R ?~~~ 1~:44 651 4269458 PAGE. 06 \ :<t-: ~ I ~~ Iii Si~ I / 1{)>(O I Q) )( jl <! 0 (/ '; (">I EX,ST~ 3B~ ~ / i: ~ ~ I Fa, ) 0;1"") ~I- w ' - x~" ",-- A_ x . I 0 'I U) I ~N" " ,a. L() ./' I I;.N(5 I~ ~g 1/ G.R,E, \ , - o:e ~ u..-, ,/ x I g"'! 0 Ilh ~ ( SUB PROPERTY ,,__ , , I (J1 - 01 ;g <-D ---< - Fence 20,5:t W, 01 Line x I' 0;;:; _ _ _________________ / ----------~----_=_- ----n1tl--~n- r-- 60000 i I x - FEMA -I _I C I w 0 ., , I : 1 x~ 3 ~ ~ Un,led Power Association ! fJ I! I. (f) ~ 0 I ~ x I ~ ~.z ZONE B ./l 1 ...0", x I . crOci ./'" I EX.ST~.4B f ~ g SUB. FENCE ~- .... x , ., S89'04'3?-E , u. 22,8:t W, of Line ---J 350.02l.. , GATE - , --*" \ A___ \ Power Pole \" "J<0 / _ \ _ "- 1,/ I X (Pe, GRE) '-\ "",~, l - ~ ,>' i ~S I ',I GA TE Uo''', Po.~ A"o"oHoo It' f,,~ ~ ( I I' 0'- 0' " x '~ ". ~ , ~ . ~ ' ~N", I' ~ x .~O I ,")_. 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WWW,CLANDOVER,MN.US TO: EDA President and Board CC: Jim Dickinson, Finance Director FROM: Will Neumeister, Director of Community Development~_ SUBJECT: "Great River Energy Parcel" DATE: April 15, 2003 INTRODUCTION As shown on the drawing, the parcel is 350' x 364' yielding a gross area of 127,400 s.f, or 2,92 acres in size, There are a number of easements for power utilities that cross the parcel, along with the right- of-way for Bunker Lake Boulevard. Subtracting these from the gross area of the parcel results in the net buildable area of the parcel: Unusable Areas (for building purposes) . 50' Bunker Lake Blvd, R.O.W. 50' x 350' = 17,500 s.f. . North/South Power Easement 150'x314' = 47,100 s.f. . "Sliver" along east edge IS' x 314' = 4,710 s.f. . Small triangular power easement Yz x 45' x 60' = 1.350 s.f. Total 70,660 s.f. Net Usable Area of Parcel Gross Area of Parcel 127,400 s.f. Unusable Areas (for building purposes) -70,660 s.f. Net Buildable Area 56,740 s.f. Note: the part covered by the power easements may be used for parking. Determining the value and/or use of the parcel for retail or restaurant purposes will depend upon: . Visibility of the parcel from high traffic volume roads . The amount of buildable space in which to build a structure . The amount of parking space available, / " DISCUSSION . Staff has prepared two different drawings to show how the site may be used for either a retail or restaurant (sit down or fast food) development. RETAIL USE The first example is with a 19,000 square foot retail building. The amount of parking is shown as 127 stalls that would be more than adequate for 19,000 square feet of retail space. RESTAURANT USE A second example shows the site being divided into two pieces, each with a small fast food (drive- in/convenience) type restaurant. The amount of parking available would again be the limiting factor. It is possible that the two restaurant sites could be developed and the shared parking available would be 85 to 100 parking stalls. This again would dictate how large the seating area in the restaurants could be. The ordinance is more liberal with fast food establishments requiring only one stall for each 150 square feet of area. The 85 to 100 stalls would be sufficient for the two sites. If the site were used for a conventional sit-down restaurant, the building would need to be roughly \ about 75% of the size of the Tanners Steakhouse (which is 8,000 square feet in size and has 230 . parking stalls). This is due to the fact that the Zoning Ordinance requires one parking stall for each 40 gross square feet of floor area for sit down type restaurants/bars/on-sale nightclubs. Also, some parking is needed for the kitchen area. Again, the estimate for the size of sit-down restaurant that it could accommodate is about 114 seats (which is about half the size of the Tanner's Steakhouse). The building would be only about 5,000 square feet in size, thus the amount of space available for parking would increase as a result. Further detailed study may show that somewhere around a 5,000 square foot building would be capable of being put on the site with adequate parking for it. Again, the key determinant for the size of any restaurant is the amount of parking that is available. ACTION REQUIRED None is needed, this purpose of this memo is to present more detailed information on how the site may be developed, either in retail or a restaurant use. Respectfully submitted, wL Will Neumeister J