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HomeMy WebLinkAboutEDA July 15, 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 15, 2003 - 6:00 p.m. CONFERENCE ROOM A AGENDA 1. Call to Order 2. Approve Minutes - July 1,2003 3. Developer Option Extension Request (Continued) 4. Review Andover Station North RFP 5. Authorize Market Appraisal for Andover Station North 6. Discuss EDA Role in Business Appreciation Day and Business () Recognition Program 7. Other Business 8. Adjourn , '\ '-../ @ \ / 1685 CROSSTOWN BOULEVARD N,W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW,CI.ANDOVER,MN,US TO: President and Commissioners CC: John Erar, Executive Directo~ FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: July 15,2003 INTRODUCTION The following minutes have been provided by staff for approval by the EDA: \ July 1,2003 Special Meeting (Trude, Larsen, Schultz. absent) / Copies are attached for your review. ACTION REQUIRED The EDA is requested to approve the minutes listed above. Respectfully submitted, ~ tJrL/-- Vicki V olk City Clerk , / 5l\NDbVE~ / 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US SPECIAL ECONOMIC DEVELOPMENT AUTHORITY MEETING JULY 1,2003 -MINUTES A Special Meeting of the Economic Development Authority was called to order by Secretary Don Jacobson at 6:33 p.m., Tuesday, July 1,2003 at the Andover City Hall, 1685 Crosstown Boulevard N.W., Andover, Minnesota. Commissioners Present: Ken Orttel, Mike Knight, Robert Nowak, Mike Gamache (arrived at 6:37 p.m.) Commissioners Absent: Julie Trude, Fred Larsen, Edward Schultz Also Present: Executive Director, John Erar Finance Director, Jim Dickinson Others "- , J AGENDA APPROVAL Motion by Knight, seconded by Nowak to approve the agenda as presented. Motion carried. APPROVAL OF MINUTES June 17, 2003: Correct as written Motion by Knight, seconded by Orttel to approve the minutes of June 17,2003 as written. Motion carried. ANDOVER STATION-RYAN/TARGET EXTENSION REQUEST Mr. Erar explained that Ryan/Target are requesting a 180 day extension on the option agreement to allow adequate time for purposes of conducting their due diligence on the site. This would allow them time to deal with any environmental issues which may arise. Stafffeels the request is appropriate. Tom Palmquist, Ryan Companies, has said that this is a routine request from Target when dealing with this type of property. Commissioner Orttel asked if we are operating under an extension now. Mr. Erar stated the extension we have now is with United Properties. Once the option agreement is J executed by United Properties they will then sell the property to Target. Special EDA Meeting July 1, 2004 - Minutes Page 2 (President Gamache arrived at 6:37 p.m.) The EDA discussed whether this would delay the construction of the Target store. Mr. Erar stated that he would have language that says the extension only happens if something is found on the site. Motion by Orttel, seconded by Jacobson to approve the 180-day conditional extension request based on any negative environmental discovery. Motion carried unanimously. Mr. Erar informed the EDA that United Properties has signed an agreement with Walgreens. Motion by Gamche, seconded by Orttel to adjourn. Motion carried. Meeting adjourned at 7:00 p.m. . Respectfully submitted, :' / ~~.., I ,.,; I I Ii, /1 ~J// ~..i~,,,,,,~- v....~~ Vicki Volk City Clerk / 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 Board FROM: John Erar, EDA Executive Director SUBJECT: Developer Option - Extension Request DATE: July 15,2003 INTRODUCTION At the July 1, 2003 EDA Board meeting, an extension request was approved by the Board granting a "conditional 180-day option extension" relative to any unforeseen environmental issues that may delay the development of a Target store in Andover Station South. The reason for this extension was to allow Target Corporation and Ryan Companies the opportunity to conduct due diligence reviews of the site, essentially related to environmental concerns, which in their view might delay their purchase of the site from United Properties. DISCUSSION I Since that time, I have met with representatives of Ryan Companies, speaking on behalf of Target Corporation, who have expressed concerns with the "conditional" nature of the extension. In their view, Target Corporation is unwilling to work within the conditional aspects of this extension given concerns that there may be other indirect delays associated with conducting their due diligence of the site. In their view, these delays may be attributable to obtaining certifications from the MPCA, lender delays and/or approvals for wetland mitigation activities, which in turn might delay the platting of the property and other miscellaneous process items associated with purchasing the property. Typically, it has been my experience that a developer will not execute a purchase agreement unless they are fully satisfied with the integrity of the site in terms of their ability to develop and plat the property, along with the consequential approvals they will need to move the project forward without incurring excessive, unforeseen expense and/or experience significant delays or objections. In reality, many developers request and negotiate purchase agreements with potential property owners that contingent the final sale of a piece of property on approval of a final plat by the governing body. Based on my discussions with Ryan Companies' representative Tom Palmquist, it would appear that Target Corporation is concerned with the site's history to the extent they feel it is prudent to allow themselves additional time to execute a purchase agreement with United Properties. Ryan / Companies has indicated that Target is committed to the site and the original development time frame, barring any unforeseen circumstances that result in a delay relative to their closing on the property by October 15, 2003. A delay in Target purchasing the property beyond October 15, 2003 would obviously delay their store-opening schedule for Fall 2004, and could push the date to Spring 2005. While this office cannot convey any absolute guarantees regarding what would constitute an "unforeseen" circumstance, it is my belief that Target has a good faith intention to meet the Fall 2004 store-opening schedule. Discussions with Ryan Companies Vice-President Tom Palmquist regarding what would constitute an "unforeseen" circumstance have always revolved around site development issues as previously described. Throughout this process, staff has continually emphasized the importance of meeting the Fall 2004 time line with Ryan Companies and United Properties. ACTION REQUIRED Consider extending the option with United Properties for 180 days for the purpose of allowing Target Corporation additional time to address site development issues. In addition, I have attached a copy of two e-mails. One sent by my office to Ryan Companies and United Properties regarding the EDA's financial commitment to address the disposal and clean-up of any suspected environmentally hazardous soils discovered during the grading of the site. The second email by Commissioner Bob Nowak regarding his position on the option extension request. / The EDA Board is respectfully requested to approve the option extension request for 180 days to April 15, 2004 with United Properties. / Page 1 of 1 John Erar From: Bob & Jan Nowak [nowak@pro~ns,net] Sent: Monday, July 07, 2003 3:16 PM To: John Erar Subject: Andover Station-United/Ryan/City-Target site deal Basis our telephone conversation......as much as I dislike the possible 180 day delay in opening of a Target Greatland in Andover Station......its a tougher pill to swallow to lose the whole deal over 6 months of "possible" delay. So I support the proposal to give them a 180 day delay if sufficient unforseen site related issues only come up during their "due deligence". Thank you for calling, John, and J hope this will get the deal done. AND......I hope no unforseen items come up so we can see a grand opening in October 2004! As to the EDA meeting next week I shall be out of town but am very interested in getting-out an RFP on Station North, so trust that will get approved. Bob Nowak J ~ 7/10/2003 Page 1 of 1 John Erar From: John Erar , Sent: Monday, July 07, 2003 10:12 AM To: Tom Palmquist (E-mail) Cc: James Dickinson; Dave Berkowitz; Will Neumeister; Courtney Bednarz; Keith Ulstad (E-mail); Todd Haas Subject: Hazardous Waste - EDA Commitment Tom: As a follow-up to our meeting on Thursday morning, July 3, 2003, I would like to confirm in writing the EDA's commitment to take financial responsibility for the environmental clean-up and disposal of any confirmed contaminated soils within the definition of applicable state and federal environmental laws, which may be discovered on the Andover Station development site. The EDA's responsibility specifically excludes any soils correction work not attributable to any suspected hazardous environmental contaminants. Soils correction work, if any and exclusive of any aforementioned environmental site contaminants, remains the sole responsibility of the developer of record on the site. Should Ryan Companies discover any suspected contaminated soils, your agent on the site should immediately notify the City Engineer or this office and cease any work in that particular area of the site. City officials will promptly notify the MPCA, stock pile and isolate the suspected soils, and take any corrective measures necessary to satisfy the MPCA. The City will endeavor to minimize any time delays associated with any suspected environmental cleanup activities. As I indicated earlier, this area of the site was the least impacted from prior salvage yard operations and was thoroughly cleaned in compliance with MPCA , requirements. I The City Engineering Department will make available any past environmental studies and/or records you deem necessary to your company's agents in this matter. Please contact Dave Berkowitz, City Engineer for this information. Finally, a special EDA Board meeting will be scheduled for 6:30 pm on July 15 for approval of the language on extending the option with United Properties for 180 additional days. My understanding remains that this extension needs to be unconditional as it relates to unforeseen delays in the site development process, but that Ryan Companies and Target Corp. remains committed to a Fall 2004 opening schedule. I would welcome your and/or Joan Ahren's attendance at this meeting if possible. I trust this communication satisfies the substance of the issues raised at our last meeting. I look forward to working with Target Corp., Ryan Companies, and United Properties on this exciting new development. Please contact me with any additional questions or concerns. John Erar City Administrator City of Andover, MN 55304 763.767.5100 7/10/2003 @ 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: John Erar, Executive Director{4I FROM: Will Neumeister, Director of Community DevelopmentlV'L SUBJECT: Approval of the RFP for Andover Station North DATE: July 15, 2003 INTRODUCTION The staff has been working towards preparing a Request For Proposals (RFP) for the area known as Andover Station North. The attached RFP describes the basic concept for how the area north of Bunker Lake Boulevard has been envisioned and provides details regarding what potential developers must submit in order to be considered for the rights to own and develop the area. DISCUSSION An RFP has been formulated to explain to potential developers what vision the City EDA has for this area and also covers the specific submittal requirements that potential developers must submit in order to be considered by the EDA. ACTION REOUESTED The EDA is asked to review and discuss whether this RFP meets the intent and vision that they have for the area north of Bunker Lake Boulevard and the timing that is desired. Respectfully submitted, 4/L Will Neumeister Attachments Request for Proposals Request For Proposals To Develop a Mixed Use Development To Be Known As "Andover Station North" BACKGROUND INFORMATION The Andover Economic Development Authority of Andover, Minnesota (pop. 30,000) seeks an experienced developer or team of developers to undertake development of a master planned development known as "Andover Station North", located north of Bunker Lake Boulevard, just west of Hanson Boulevard. "Andover Station North" is a continuation of the area to the south of Bunker Lake Boulevard that contains the City's primary retail and entertainment center and office park. The City is currently finalizing the development plans for this area and is ready to embark upon this next large development site that the City of Andover Economic Development Authority owns. The City of Andover has the highest median household income in Anoka County. Located within two miles of the site are several thousand housing units with more being added at the rate of two hundred per year. The entire development area of "Andover Station North" consists of approximately 90 acres, with the net usable area (exclusive of roadways, park, ponds, wetlands, and power line easement) being approximately 40 acres. The zoning of the site is currently General Business (GB) and a portion will be set aside for medium density residential development and will need to be "contract rezoned". The , GB zone provides for a wide variety of businesses including retail trade and services, office and light manufacturing and similar uses. The City expects high quality urban architecture and use of durable building materials. Maintaining architectural integrity throughout the development is a priority all of which is covered in the Design Guidelines for Andover Station that will be covenanted on the property. In this mixed-use development area, it is the City's overall goal to have a developer provide for: .:. Housing Development .:. Employment Opportunities .:. Commercial Development .:. Recreational Opportunities .:. Park and Ride Facilities The goal of the development area is long term in nature and seeks high tech employment as well as retail. A development style that integrates a mix of low-rise and mid-rise structures is desirable. " '""'L- It is envisioned that the successful development proposal will include: .:. A complimentary mix of land uses that offer a variety of places to go and / things to do within a compact area; .:. Life cycle, single family and multi-family homes that are within an easy walk of shopping and services such as child care, parks, and public gathering places; .:. Buildings and public infrastructure that are designed to maximize energy efficiency, encourage walking, biking, and use of transit; .:. Shared parking behind buildings, in structures, or underground; .:. A street system that is designed for access to a residential area and also capable of handling the needs of a commercial/industrial area with ample sidewalk and trails that will encourage pedestrian circulation; .:. Preservation and creation of natural features to ensure environmental protection and simultaneous accessibility for public use and enjoyment; and .:. Edge treatments which are respectful of adj acent residential neighborhoods. STATEMENT OF PURPOSE The Andover Economic Development Authority and Community Development Department are inviting development proposals for this mixed-use development opportunity. Developers are asked to demonstrate in their proposals: 1. Market support for various land use types and development densities. 2. Appropriate land uses within the study area, including but not limited to residential (for a variety of markets and price points), retail commercial, office, light industrial, and park/open space. 3. Strategies (action steps and schedules) to develop the mixed-use area. 4. Land use arrangements and urban design and architectural guidelines that will be implemented in the area to encourage: .:. Transit-oriented lifestyles for future residents and use of commuter rail services and other future transit services. -3- .:. A high level of pedestrian circulation and use of alternative transportation modes for future residents, business patrons, and employees. .:. Development of high quality buildings, and overall design character for the areas future development focusing on use, frontage, and streetscapes. .:. Development of the mixed use area in a manner by which a positive community identity may be established that takes full advantage of the area's access, visibility. 5. Provide an implementation plan that identifies: .:. Specific development/redevelopment projects within the study area, project phasing. .:. Implementation partnerships (public/public and public/private), and sources of funding. DEVELOPMENT AREA A map of Andover Station North is presented as an attachment to this document. Electronic files of the site specific information that has been completed to date is available upon request. EA W APPROVALS AND TRAFFIC STUDY / The Andover Station North mixed-use development area has already been through the Environmental Assessment Worksheet (EA W) process and a negative declaration on the need for an Environmental Impact Study has been made. A detailed traffic study has already been completed and both documents area available to the prospective developers to use as needed in preparing the request for proposal (on a request basis). DEVELOPMENT ISSUES At a minimum, the following development issues will be addressed in the developer's proposal: .:. Market analysis -- Determine market support for future uses (type and density). Market analyses for potential future commercial uses should include competitive centers evaluation, a trade area analysis, and a competitive position evaluation. The market analyses should address the potential to develop light industrial facilities as well. .:. Thoroughfare Upgrades - Anoka County has indicated that the development must provide for the upgrades to both Bunker Lake Boulevard and Hanson Boulevard that relate to traffic generated from the proposed development. The development -4~ proposal that is put forth should indicate the developer's willingness to undertake these costs as a part of the costs of developing the site. .:. Park and Ride Facilities - Developer should indicate whether there is a willingness to work with the City to establish a park and ride facility on the site (i.e. under the powerlines). SUBMISSION REQUIREMENTS Each submission of a development proposal should be presented in an 8 Yz" x 11" vertical, bound format. The submissions shall be limited to twenty (20) pages or less. Ten (10) copies of the proposal shall be submitted at the time indicated in the following proposal schedule section. Submit one master copy and ten photocopies (black and white) of the complete package. Submittals will become the property of the Andover Economic Development Authority and will not be returned. All submissions must be received by the City of Andover by Tuesday, August 26, 2003 at 4:00 p.m. Submissions shall be addressed to Will Neumeister, Community Development Director, City of Andover, 1685 Crosstown Boulevard, Andover, MN 55304. All phone calls / regarding submission requirements shall be directed to Will Neumeister at 763-767-5140. All questions regarding the content of proposals and clarification of substantive issues must be submitted in writing to Will Neumeister by August 6, 2003. Written responses to inquiries will be mailed on Monday, August 11,2003. SPECIFIC RFP SUBMITTAL REQUIREMENTS: Each RFP submission must be arranged according to the following outline: 1. Title Sheet The title sheet must provide the name(s) of the developer submitting a development proposal with the name of the prime contact clearly identified. 2. Cover Letter The cover letter must indicate the composition of the entire development team including the Principal in Charge, Project Manger and support team. 3. Table of Contents , -!7- 4. Background Information on Developer's Team Summarize for each member of the developer's team their background and focus. List and describe the principals, their length of association and general background. Provide a list of current active projects including the name, type of project, location, firm's role in the project and status of the project. 5. Relevant Experience of the Developer's Team List three to five (3 to 5) examples of mixed-use development projects comparable in scale, program, process, component parts and function to this mixed-use development project. For all projects listed as relevant experience, include the following: . Location . Date of project involvement . Project description including illustrative materials and a written description of why this example is relevant to this mixed-use development project . Cost and scope of the project 6. Development Team Composition / For each firm included in the team provide names, titles and qualifications of individuals who will be assigned to the project. This section of the proposal should include descriptions of the respective roles that will be played by team members. Discuss the experiences ofteam members on the example projects referred to above. A resume (no more than one-page in length) should be included for key team members in an addendum to the proposal. 7. Developer's References List a minimum of three (3) references. List references for the example projects. For each reference list the contact's name, address, phone number and relationship to the developer. 8. Statement of philosophy and project understanding Provide a concise statement (one page) outlining the philosophy of the team in approaching projects of this nature. 9. Overall project schedule / -b- Provide a proposed timeline for completing the mixed-use development project. 10. Proposed Purchase Price Present a proposed purchase price for the entire mixed-use development proposal and the timing of how the land would be taken down. Submission Schedule: I. Release of the Request for Proposals July 17, 2003 2. Project informational meeting July 23, 2003 3. Deadline for the submission of written questions regarding the RFP August 6, 2003 4. Deadline for submission August 26, 2003 5. Dates for interviews (if needed) Week of September 8, 2003 6. Final Selection of Developer by EDA on September 16,2003 7. Enter into Development Agreement to Develop or Purchase of Property on September 30,2003. Proposal Review, Evaluation Process and Final Developer Agreement Proposals submitted for this mixed use development project will be reviewed and evaluated as follows: I I. A Developer Selection Committee comprised of city staff will review all development proposals submitted. Those proposals that fail to meet specific requirements outlined above will be eliminated from further review. 2. Remaining proposals will be reviewed and evaluated for content and four developers will be brought forward to the Andover Economic Development Authority (EDA) for review and consideration. 3. The Andover EDA may also decide to conduct interviews with the developers that have been recommended for further discussions. 4. If interviews are conducted by the EDA, each developer will be given up to 20 minutes to present their proposal. The presentation will be followed by up to 35- minutes of questions for the developer's team. The questions will be comprised of both standard and proposal-specific questions. 5. Each team will finally be given up to 5 minutes to make summary statements. 6. The EDA will make the final decision on which development proposal to move forward to final negotiations with. -7- 7. A master development agreement will be drafted and final deal points with the developers will be included in the formal developers agreement and signed by both the Developer and the President of the EDA. The City of Andover reserves the right to reject any or all submittals and withdraw, modify or reissue this RFP at any time. / -0- g 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 FROM: John Erar, EDA Executive Director SUBJECT: Authorize Market Appraisal for Andover Station North Site DATE: July 15,2003 INTRODUCTION The EDA Board is requested to authorize staff to engage a commercial appraisal firm for the purposes of establishing a market value for Andover Station North. DISCUSSION As the process to market Andover Station North progresses, the need to determine an appropriate valuation of this property becomes urgent in developing a negotiating position with prospective developers. BUDGET IMPACT The fee for a market appraisal is dependent on several factors, but should fall within $8,000 to $13,000 depending on the level of research associated with the multiple uses of the site. As there are currently 15 potential parcels within Andover Station North, the fee for market appraisal services will be based on the differing commercial and residential uses of each proposed parcel. This information is critical to negotiating land sales that allows the EDA to receive fair market value for the subject properties. ACTION REOUIRED Authorize the Executive Director to obtain quotes and engage a firm to conduct a market valuation of the commercial and residential parcels contained within Andover Station North. Respectfully submitted, Sl\NDbVE~ ({) 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 FROM: John Erar, EDA Executive Director SUBJECT: Discuss EDA Role/Program Business Appreciation Day Business Recognition Program DATE: July 15, 2003 INTRODUCTION The City Council has adopted two goals relating to recognition and appreciation of the local business community. Both Council goals include opportunities for the EDA Board to serve in a leadership role to establish the direction that staff should pursue in coordinating and organizing these two activities. DISCUSSION Staff has discussed several options for the EDA Board's consideration in developing possible program approaches for both goals. Business Appreciation Day Option A: Develop a program based on a golf outing for participating businesses that would include a buffet style dinner, brief dinner program with business recognition and awards. The green fees, cart and dinner would be paid for by participating businesses, with awards, grab bags, golf prizes and miscellaneous organlzmg expenses being underwritten by the EDA (approximately a $1,000). Organizing this event could be coordinated through Anoka Area Chamber of Commerce (AACC). Peter Turok, President of the AACC has indicated his willingness to coordinate the entire event, with the exception of hosting the reception, the awards and dinner program, which he felt the City should actively host with the Mayor as the master of ceremonies. Mr. Turok already coordinates this type of event for Anoka, Ramsey and Champlin and indicates this a very popular event for local business participation. If the Board is so inclined, two dates have been identified for consideration: Friday, September 5 or Friday, September 12. City staff would work with Mr. Turok to organize the event and prepare a proposed program. This could also be a good opportunity to showcase the Community Center, Andover Station and other City projects as part of the program. Option B: Develop a program based on reception only that would include light snacks, a cash bar and a brief presentation of current development projects occurring in the City. This could be held , at the Andover Courtyards in the late afternoon for a limited time period. It would essentially be an informal gathering of businesses, with EDA Board attendance. The EDA Board could underwrite the cost of the light snacks and refreshments. Option C: Develop a more formal program modeled after Option B that would include a formal sit-down dinner, with a reception, cash bar, dinner program and presentation. The EDA Board could underwrite a portion of the dinner costs and organizing expenses. A speaker could also be hired dealing with contemporary business issues or held to a more humorous theme with a comic relief performer on general issues of the day. As with Option A, this could also be a good opportunity to showcase the Community Center, Andover Station and other City projects. Business Recognition Program The EDA Board is requested to consider the establishment of a Business Recognition Program for recognizing local businesses. Questions and issues the Board may wish to consider include: . The level of involvement the Board would envision for itself? . What type of criteria would the Board favor? . Format for business recognition in terms of publicizing the recognized business? Should this be done at a televised Council meeting? . The costs associated with the program? What type of recognition would be appropriate and depending on what it is, who should pay for it? . How frequently should any business be recognized (IX a month.. .IX a quarter)? / . What do other cities do? Staff will need some time to research this question. . How would the selection be made? A committee comprised of the Board, other businesses or a combination? I am sure there will be other questions, but this should be a good beginning point. BUDGET IMPACT Both Council goals are related to economic development initiatives in terms of building, attracting and retaining a strong local business base in the community. Funding for these events could be appropriated through the EDA Special Revenue Fund. ACTION REOUIRED For EDA Board consideration. \ /