Loading...
HomeMy WebLinkAboutEDA July 1, 2003 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 SPECIAL MEETING July 1, 2003 - 6:30 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes - June 17, 2003 3. Andover Station - Ryan/Target Extension Request 4. Other Business 5. Adjourn J / C I T Y o F @ 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 CC: John Er.rr, Executive Directm~ FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: July 1,2003 INTRODUCTION The following minutes have been provided by Time Saver Secretarial for approval by the EDA: June 17, 2003 Regular Meeting (Schultz absent) / Copies are attached for your review. ACTION REOUIRED The EDA is requested to approve the minutes of the June 1, 2003 meeting. Respectfully submitted, ~'d$ Vicki V olk City Clerk C I T Y o F NDOVE I 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,C1.ANDOVER.MN.US ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING JUNE 17,2003 -MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, June 17,2003, 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 Fred Larson and Robert Nowak. Absent: Non-voting resident member Edward Schultz. Also present: Executive Director, John Erar Community Development Director, Will Neumeister City Engineer, Dave Berkowitz City Finance Director, Jim Dickinson Others APPROVAL OF MINUTES June 3, 2002: Correct as written. MOTION by Jacobson, Seconded by Larson, approval of the Minutes as written. Motion carried 5 ayes, 1 absent (Orttel), I present (Nowak). UNITED PROPERTIES COMMERCIAL SITE PRESENTATION Keith Ulstad, United Properties, presented architectural renderings of the new Target Greatland development site and plan to the Commission. Mr. Ulstad showed maps of Andover Station and explained they did not realize how well the interior road tied the entire project together until he saw the site plan. He noted they have a . signed lot agreement with Walgreen's to locate on the property pending City approval. They have a deal done with Target pending EDA approval and circulated an amendment to the deed restriction to all involved. They have talked with a national restaurant chain to build on the site pending EDA approval. Mr. Ulstad summarized the report for the Commission including the trail system. Mr. Erar stated in terms of the pond area, trails, etc, they are consistent with the thoughts the EDA had in the beginning. Staff worked with United Properties to create this. Mr. Ulstad explained the fountain was the City's idea and it would attract the passersby as more than a J,' Andover Economic Development Authority Meeting Minutes - June 17, 2003 Page 2 shopping area, but an area that people can congregate at. Commissioner Orttel arrived at 6: 1 0 p.m. Commissioner Knight asked if there was any way they could connect the two areas with an underground passage so people would not need to cross the road. Mr. illstad stated they are dealing with some pretty tight grades and he is not sure it would work. Mr. Joe Samuel, RLK, explained there is significant bounce and if they had a tunnel under the road, there is a possibility of flooding because of the fluctuation. Commissioner Knight asked if they could go over the road. Mr. Samuel stated this was a possibility. Commissioner Jacobson asked about the building on the NW comer, a food service and he wondered if this could be moved over to border the pond area Mr. Ulstad explained he did not have a problem with this because he did not think Target would have a problem. He would like to defer this until Target presented their plans to the EDA. Mr. Erar explained the option agreement with United Properties. . Commissioner Knight explained the nicer the pond area is, the more benefit for the shops in the area Mr. Erar stated they would talk to Target regarding this. Commissioner Trude asked what kind of building Target planned on building because it looks too boxy. Mr. Ulstead explained Target was going to emulate Knowlan's. Commissioner Orttel asked what the width of the main street is. Mr. Samuel explained the street was 28 feet face to face and 30 feet back to back. Commissioner Orttel asked if the street was trying to take the congestion off of Station Parkway. Mr. Erar explained the street is a way to get the internal traffic through. Commissioner Knight stated they may create so much traffic they may end up with a lot of cars coming and going. President Gamache asked if there is a plan for a stop light off of Quinn Street. Mr. Ulstad stated there was not Commissioner Trude stated they might need a stop sign. Commissioner Trude emphasized that landscape will be important and she is hoping the lights will be lower lights in comparison to the rest of the station. Mr. Samuel stated it would be consistent with what is there already. Commissioner Knight asked what types oflandscaping they are thinking of. Mr. Samuel stated they will be working with staff on this and they have ideas of what the City wants. Commissioner Orttel asked if the pond is no longer considered a wetland. Mr. Erar stated this is considered a storm pond and they are even considering putting in a dock with some fish. Andover Economic Development Authority Meeting Minutes - June 17, 2003 Page 3 Commissioner Jacobson asked when groundbreaking will be. Mr. Ulstad stated he thought it would be late August pending approval. Commissioner Trude explained the brick look inlay slows people down when they come upon it and she hoped they would use this in front of Target like they have at Knowlan's. She stated the parking ordinance is ten-foot parking spots. Mr. Nowak hoped there would be no internal signage like around Festival. Commissioner Trude asked what the thought was for the trail. Mr. Ulstad explained it would be an eight-foot wide bituminous trail. Mr. Ulstad explained that the Outlot B pond is not the feature pond, Outlot A pond will be. Motion by Jacobson, Seconded by Orttel, approval of preliminary site and building approval to the site development plan for a Target Greatland store in Andover Station South subject to discussion points. Commissioner Trude stated for the record she has a daughter that is a Target employee but did not believe this would be a conflict of interest. Motion carried unanimously. UNITED PROPERTIES RESIDENTIAL SITE PRESENTATION Mr. Keith Olstad of United Properties and Mr. Greg SchIenk of Bruggeman Homes presented architectural renderings of the new Bruggeman Homes development and site plan. Mr. Schlenk explained they had a neighborhood meeting and no one attended. He explained their concept plan is similar to the Hans Hagen plans. They are working with United Properties. Commissioner Knight asked what the homes would be selling for. Mr. SchIenk stated they would start at $165,000. He stated they would like to try to start ground breaking in the fall. Mr. Berkowitz suited they will try to get utilities in this fall for development in the spring. Commissioner Jacobson stated there was some concern in the past with this being a brownfield and he asked if all the information was given to them. Mr. SchIenk stated they have not read the reports in detail but he did not think there would be a problem. Commissioner Trude asked if they construct slab or basement homes. Mr. SchIank stated they do both but people have been resistant to basements for the homes. Motion by Orttel, Seconded by Trude, approval of preliminary residential site and building plan Andover Economic Development Authority Meeting Minutes - June 17, 2003 Page 4 approval for Bruggeman Homes in Andover Station South subject to ARC approval and comments discussed. Motion carried nmmimously. APPROVE 1ST AMENDMENT OF DECLARATION OF RESTRICTIVE COVENANT Executive Director Erar explained the document in the Commission packet specified a revised understanding between Target Corporation, United Properties, Festival Foods and the City Economic Development Authority as it relates to the non-compete grocery store provision incorporated within the original Declaration of Restrictive Covenant dated August 6, 2002. The Original non-compete restrictive covenant prevented a competing grocery store facility from being constructed on EDA owned property. In order for a new Target Store to be constructed. the various parties needed to amend the original covenant with regard to modifying the noncompete provisions to meet the needs of both Festival Foods and Target. Mr. Erar explained through several months of very complex negotiation that began last year, United Properties and City staff worked with Target and Festival Foods to develop an acceptable revision to the noncompete provisions. ; The City Attorney has reviewed this document and has no legal objections to its adoption. Motion by Jacobson, Seconded by Trude, approval of the I st Amendment to Declaration of Restrictive Covenant. Commissioner Orttel stated there is no mention of time, which is unusual. Mr. Erar explained if Festival foods were to cease to exist, it would be twenty-four months before Target could expand to a Super Target. Mr. Erar explained this only explains what Target can and cannot do within the store. Motion carried unanimously. MARKETING STRATEGY/ANDOVER STATION NORTH Executive Director Erar explained the development of a site layout for Andover Station North is at a point where the EDA Board will need to provide some direction to staff regarding the marketing of this property. There has been and continues to be interest in developing the site by both large and small business interests. Staffhas had discussions with several interested parties that are in the beginning stages of expressing interest in either acquiring individual parcels or large-scale tracts of property to develop a master plan for the entire site. Staff would like to engage the EDA Board on this topic to being the process of determining how to deal with prospective development interests. Andover Economic Development Authority Meeting Minutes - June 17, 2003 Page 5 Commissioner Jacobson stated the more interest they have, the better for the City. Mr. Nowak agreed. Mr. Neumeister explained how the process for development would begin and how they would pick the developers. Mr. Erar stated United Properties and other developers think of the frontage area as prime space and they may want to keep this property for themselves. Commission consensus was to go with the RFP and bring a list to the EDA for additions for a good business mix. DISCUSS EDA POSITION ON LEASE REVENUE BONDS City Finance Director Dickinson explained on June 4, 2003, the City Council declared its intent to support the issuance oflease revenue bonds for the new Andover Community Center. It was suggested that as the EDA will be called upon to issue the lease revenue bonds for this project, that the EDA should discuss its position relative to the issuance of these bonds. The issuance of Lease Revenue Bonds by the EDA will not affect EDA finances as debt service payments will come from a myriad of facility revenue resources, including YMCA Lease revenues, advertising, user fees, concessions, rentals and capital campaign pledges, with any differences in operating revenues and expenditures appropriated annually by the City Council through a separate City tax levy. Financial proformas prepared by the City finance department suggests that the facility will need minimal public subsidy for the first several years of operation. The level of public subsidy under a Lease Revenue Bond may be adjusted annually in response to rising or declining operating revenues generated by the new Community Center. The EDA is authorized under state statute to serve as the issuing agency. OTHER BUSINESS There was none. Motion by Orttel, Seconded by Trude, to adjourn. Motion carried lImmimously. The meeting adjourned at 6:57 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary @ 1685 CROSSTOWN BOULEVARD NW. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US TO: EDA President and Board FROM: John Erar, EDA Executive Director SUBJECT: Ryanffarget Companies Request for Time Extension DATE: July I, 2003 INTRODUCTION The EDA Board is requested to consider a request by Ryan/Target Companies for a 180 day extension for purposes of conducting their due diligence on the site, DISCUSSION The Option Agreement with United Properties expires on October 15, 2003. Ryanffarget Companies is requesting that an extension be granted to the Option Agreement between United Properties and the Andover EDA to allow them adequate time in dealing with any environmental issues arising out of the site. I have requested that this time extension request be communicated in writing, which is attached to this report. Ryan Companies has indicated that this will not necessarily delay their proposed development time line, unless unforeseen environmental issues emerge that necessitates additional time delays. Staff has reviewed this request, and subject to Target's commitment to proceed with their development timeline as previously proposed, has no objection to granting this time request subject to EDA approval. BUDGET IMPACT Delays due to environmental site issues may result in a loss of tax increment revenues, At this point, staff is holding Ryan/Target Companies to their original development timeline. ACTION REQUIRED Consider time extension request as presented by Ryanffarget Companies. Page 1 of 1 John Erar From: Tom Palmquist [Tom.Palmquist@RyanCompanies,com] Sent: Wednesday, June 25, 2003 3:29 PM To: 'jerar@cLandover.mn,us' Cc: 'Keith Ulstad' Subject: Proposed Target - Andover Station John, as a follow up to our earlier conversation, I thought I'd write a quick note to underscore the need for Target Corporation and Ryan Companies US, Inc, to be able to control the approximately 16.5 acre tract at Andover Station beyond the 10/15/03 outside date contemplated in the First Amendment to Option to Purchase between the Andover EDA and United Properties Investment LLC. Specifically, Target and Ryan require that this outside date be extended to April 15, 2004, This is critical due the environmental considerations associated with the site to be acquired and also the site to be used for the mitigation of wetlands, In fact, without this, I cannot go forward with Target and Ryan expending the necessary additional due diligence review dollars required for this site, The timeframe for due diligence is overly compressed and does not allow for any unforeseen contingencies, Target has a very involved environmental review process and in light of this being a Superfund site, there is concern that the environmental agency review and approval process may push the due diligence period and process for Target beyond a timeframe which would allow a closing on or before 10/15/03, Notwithstanding, understand that it is the goal for Target and Ryan to close fall '03 and commence construction, We will work in eamest with United Properties and the EDA to accomplish this. Target is planning a store opening in October, 2004. Given the timeframe required for construction, this requires a closing this fall. If due to governmental or environmental agency delays the closing could not take place this fall, but the approvals could be obtained over the winter, Target would then close in April, 2004, with an opening of March, 2005. Given internal Target policy, if the October closing window is not achieved, Target would not be in a position to close until the following April. Please contact me with any questions or comments regarding this matter. I would also be available if needed to address the EDA directly regarding this requirement. Thank you for your continued assistance in this process. Thomas P. Palmquist Vice President, Retail Development Ryan Companies US, Inc, 50 South Tenth Street, Suite 300 Minneapolis, MN 55403 612-492-4354 (office) 612-492-3354 (fax) 612-360-3354 (cell) tom, palma uist@.ryancomoanies,com 6/25/2003