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HomeMy WebLinkAboutEDA February 6, 2002 -- CITY OF ANDOVER 1685 CROSSTOWN BOULEY ARD N,W. . ANDOYER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW,CI.ANDOYER.MN.US Economic Development Authority Meeting - Wednesday, February 6, 2002 Call to Order - 6:30 p.m. 1. Agenda Approval Discussion Items 2. Andover Station/Commercial Development Proposal (United Properties) 3. WDE Site Development/Private Development Proposals a. Bruce Knowlan b. Premier Commercial 4. Commercial BoulevardIName Change/Parking Restrictions (Board President Request) 5. WDE Site Planning Discussion & Review (Staff Presentation) 6. WDE Site Planning/Great River Energy Site Acquisition (Discussion) Adjournment @ CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW,CI.ANDOVER,MN,US TO: EDA Chair and Board FROM: John Erar, Executive Director SUBJECT: Consider Andover Station Commercial Development Concept Plan DATE: February 6, 2002 INTRODUCTION Mr. Bruce Carlson, representing United Properties will be in attendance at the Board meeting to present concept plans regarding the commercial development of Andover Station. DISCUSSION EDA Board members have been previously advised that a prospective grocery store operator is interested in locating a new store in Andover Station. Ms. Marie Arthune, President and CEO of Knowlan's Supermarket Inc. has been working with United Properties to develop plans for this facility. Ms. Arthun should be present at the meeting to respond to questions and provide the Board with additional information. Consequently, the purpose of the EDA Board review at this meeting is to provide direction on whether the concept plan as proposed by United Properties meets with EDA Board approval in terms of development vision for Andover Station. ACTION REOUIRED The EDA Board is respectfully requested to express theirs views, comments and questions on the proposed commercial development for Andover Station at this evening's meeting and provide staff with direction in terms of forward progress. Should the EDA Board be receptive to United Properties commercial development proposal, staff will proceed with a full-scale commercial site plan review. Under the terms of the development agreement, United Properties must submit construction plans for commercial development to the EDA by March I, 2002, therefore the EDA will need to express their views as to the acceptability of concept plans. Construction of minimum commercial improvements must commence by May 1, 2002, subject to unavoidable delays. Similarly, in order to satisfy the terms and conditions of the development agreement, closing of the property is scheduled for March 15, 2002 or earlier if agreed by the parties. This date may be extended 10 days beyond the last date that United Properties has to terminate the agreement (referenced under Exhibit B, Terms of Conveyance). Q) CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N. W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CLANDOVER,MN.US TO: EDA Chair and Board FROM: John Erar, City Administrator SUBJECT: WDE Site Development - Private Development Proposals DATE: February 6, 2002 INTRODUCTION The City has received notification that two additional parties are interested in the development potential of the site directly east of the First Regions Bank site. DISCUSSION As the EDA Board may recall, a presentation was made by Northwest Commercial LLC on December 18, 2002 regarding their interest in developing a strip mall on this site. Since that time, my office has received calls from two other developer with similar interests. Mr. Bruce Knowlan is an owner of several area off-sale liquor store businesses and has indicated a strong interest in constructing an upscale strip mall center that would include a variety of different tenant uses such as a restaurant, personal service retail offices and a liquor store. Mr. Knowlan will be in attendance at the meeting to present information on his concept development plans. In terms of background, Mr. Knowlan had communications with the City previously on the adjacent site at the time the EDA was considering the First Regions Bank building project. Mr. Marty Fisher, Vice-President of Commercial Sales and Leasing for Premier Commercial Properties, has indicated an interest on behalf of their client to purchase property for the purpose of constructing a free-standing single use retail services building (liquor store). A letter to that effect is attached for EDA review. Both developers desire to make a brief presentation to the EDA on their interest in developing the site located adjacent to the First Regions Bank. Both parties have been advised that the EDA is presently considering a master site planning approach to this section of the property and consequently would probably not be making a decision until a master plan has been approved. Furthermore, given the level of interest in this site, the EDA may wish to discuss a more competitive development selection process in identifying a preferred developer. This process r . - ,- , .' ,-., .... ~. :'j ';';-. .~~. ,',.t' "",'," , ;-.-..... -"',>., :.~-~' '.' .'. ..- ~,(;.':. -,"., (i) CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W,. ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW,CI.ANDOVER,MN.US TO: EDA Chair and Board FROM: John Erar, Executive Director SUBJECT: Commercial Boulevard - Name ChangelParking Restrictions DATE: February 6, 2002 INTRODUCTION EDA Chair Gamache has requested that the Board discuss parking and street naming issues associated with Commercial Boulevard. DISCUSSION As the Board has on many occasions discussed their vision of Andover Station as a pedestrian oriented commercial center as opposed to vehicular dominated, Chair Gamache has indicated interest in encouraging opportunities for pedestrian-oriented travel, reducing traffic speeds by allowing vehicle parking on public streets thus narrowing roadway sections, and creating an environment which supports traditional urbanized commercial settings reminiscent of small, downtown main streets. Chair Gamache has requested that the Board discuss these issues at its meeting of February 6,2002. In support of these deliberations, City engineering staff has been gathering information on whether Commercial Boulevard, as an MSA route, would allow on-street parking, and should the Board support on-street parking provide options for review. This information will be provided at the EDA meeting. In addition, Chair Gamache would like to entertain Board discussion on whether the street name "Commercial" remains reflective of the EDA's vision of Andover Station or if some other street name should be considered at this point. ACTION REOUIRED Board discussion of the items as described above. @ CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER,MN.US TO: EDA Chair and Board FROM: John Erar, Executive Director SUBJECT: WDE Site Planning - Master Plan Review DATE: February 6, 2002 INTRODUCTION At the December 18,2001 meeting, the EDA had indicated an interest in reviewing street/traffic layouts and proposed site development configurations for a significant portion of the WDE site using a master site planning approach. DISCUSSION Preliminary design work has been developed to establish preferred layouts affecting traffic flow, site access points and lot size development. City staff will have three large scale master plan scenarios for EDA review and comment at the February 6, 2002 Board meeting. Proposed layouts have been reviewed by ARC and represent potential site alternate layouts. In order to provide EDA Commissioners with a preview of the master site planning concepts that will be presented at the February 6th meeting, please find two attachments representing a composite of all three master site concepts. Each color represents a different layout for traffic flow and site development and is overlaid on both an aerial and architectural view of the site. Various degrees of road curvature have been introduced as a traffic calming measure. Staffwill have three separate master site planning layouts available at the meeting. ACTION REQUIRED Additional information on this item will be presented at the February 6, 2002 EDA meeting. The EDA will be requested to select a preferred master site plan layout for the WDE site. @ CITY OF ANDOVER ~ 1685 CROSSTOWN BOULEY ARD N.W. . ANDOYER, MINNESOTA55304 . (763) 755-5100 FAX (763) 755-8923. WWW.cI,ANDOYER.MN.US TO: Mayor and Councilmembers FROM: John Erar, City Administrator SUBJECT: WDE Site Planning - Great River Energy Site Acquistion (Discussion) DATE: February 6, 2002 INTRODUCTION The EDA has had discussions in the past regarding acquisition of the Great River Energy (GRE) property located on the northwest comer of Bunker Lake Boulevard and Hanson Boulevard. DISCUSSION In an effort to move this process forward in conjunction with the development and anticipated sale of Andover Station, the EDA is requested to review and establish a more definitive Board position on the level of interest in acquiring GRE property. Several weeks ago, my office met with Mr. Gary Ostrom, Great River Energy Land Rights Supervisor, to discuss his company's position and interest in selling any or all of the property located on the Northwest comer of Bunker Lake and Hanson Boulevards (see attached aerial). In review of past correspondence, GRE had prepared information regarding potential land costs, costs to relocate their electrical facilities and other associated costs with acquiring either a portion or all of their property. Mr. Ostrom indicated that while GRE does not have any great interest in selling this property, they are willing to entertain discussions on property sale as long as the EDA recognizes its financial responsibilities are not limited to simple property acquisition but also in relocation of GRE facilities. Anticipated preliminary costs to relocate both the substation and bulk station to the north could, according to GRE estimates, exceed $8.2 million (this does not include the market value of the land itself, nor does it include the cost of acquiring additional land for displaced GRE facilities). In addition, the property is heavily encumbered with underground transmission lines that would need to be removed and/or relocated to the right-of-way (if possible) in order to fully develop the underlying property. The remaining portion of property that the EDA may be interested in is located directly east of the undeveloped lot currently owned by the EDA fronting Bunker Lake Boulevard. This site is approximately 1.17 acres in size and was the former site of the GRE office/maintenance building. The structure, as the EDA may recall, recently caught fire and is no longer present on the site. Mr. Ostrom indicated that GRE has no further plans for this site at this time, and would be interested in selling the property. According to GRE correspondence dated July 28, 2001, the site was estimated to have a land value of between $72,000 to $2l6,000. It would be necessary to have the property re-appraised to determine a current market value of the site. BUDGET IMP ACT Financing of GRE property acquisition costs could be appropriated through proceeds of Andover Station sale and should be available after March 15,2002. If the EDA is interested in any portion of the described GRE property, actions to facilitate an appraisal of the subject property should commence immediately. ACTION REOUlRED If the EDA is interested in acquiring any portion of the described GRE property, the following actions would be necessary: I. Determine the level of interest in pursuing GRE property acquisition and delineate the area of interest. 2. Authorize the Executive Director to order a new appraisal of the subject property. GRE has indicated they would like to be consulted on the selection of an appraisal firm. 3. The EDA may also wish to discuss whether the Executive Director should be directed to begin property negotiations with GRE once the appraisal has been completed or whether a future EDA meeting should be held to make that specific determination. . " aI,. . ..,. . :.',' , GBEA TJsl\lER ENERGY" - --------- - -------------- -----...- --. ------------- ---- - ---- - ---- -- ------ 17845 East Highway 10 . P.O. Box 800 . Elk River, Minnesota 55330-0800 . 612-441-3121 . Fax 612-241-2366 July 28, 2000 Dave Carlberg City of Andover Planning & Zoning 1685 Crosstown Blvd. Andover, MN 55304 SUBJECT: Connexus/GRE Bunker Lake Land Sale & Related Costs Dear Dave: The following is a breakdown of the estimated costs associated with the relocation of the Connexus Substation and distribution feeders and the reconfiguration of GRE's transmission line and related work on the GRE transmission substation. Also included is an estimated value of the substation land. A separate line item (Land Purchase only) gives an estimate for the land and buildings located in the southwest corner of the GRE/Connexus parcel. *Substation Relocation and Land Purchase - Including related Transmission & Distribution work. ./ Connexus Costs: Rebuild Distribution Feeders $230,000.00 Substation Reconstruction 280,000.00 Temporary Facilities - Mobile Sub., Crane Service, Etc 30,000.00 Subtotal $540,000.00 ./ Retirement: Retirement Substation Structure $30,000.00 Removal of Fence, Foundation & Disposal 45,000.00 Subtotal $75,000.00 . Total Connexus Distribution & Substation Costs $615,000.00 ./ GRE Costs: Reconfigure Transmission System: $375,000.00 Transmission Substation Work 250,000,00 Total GRE Trans. & Bulk Sub Costs $625,000.00 _DirecllliaL_ (163)24 k2377 E-MaiLgoslrom@grenergy,cam F A>L(263)..2.41-6iI7 A Touchstone Energ~'. Cooperative ~ -- . . ... Dave Carlberg July 28, 2000 Page Two ./ Land: 162,000 sq. ft. @ 1.00 to 3.00 per sq. ft. = $162,000 to $486,000 Land Costs (including bldg) $162,000 to $486,000 Grand Total (Range) $1,402.000.00 to $1,726,000.00 *Land Purchase Only - (300' x 240' Parcel in the southwest corner of substation parcel. ) ./ Land & Building: 72,000 sq. ft. @ 1.00 to 3.00 per sq. ft. = $72,000 to $216,000. The area of proposed land sale is highlighted on the enclosed diagram. We would agree to sell two blocks of land. One block measuring 360' x 250' is the area where the Connexus Sub is located, the other block measuring 300' x 240' includes the existing home and surrounding land. We would need to have the land appraised, but for the sake of this estimate, I have used a land value range from 1.00 to 3.00. Please keep in mind that the estimates provided are rough estimates. If the City would like to pursue the matter for further, Connexus and GRE will prepare a detailed estimate based upon engineering studies and a Certified Land Appraisal. We would ask to be compensated costs associated with the engineering studies and land appraisal. Please contact me at your convenience if you would like Connexus and GRE to pursue the matter further. Sincerely, ~FRGY Gary strom, SR/WA Supervisor, Land Rights Enclosure , GO:jh\r:\subs\bunkenake\Jandsalecost7 -13-00,doc cc: Mike Felber - Connexus Larry Peterson - Connexus Chuck Lukkarila - GRE Ivars Vancers - GRE Kevin Lennon - GRE Direct Dial (763) 241-2377 E-Mail gostrom@grenergy.com FAX (763) 241-6177 . '\. ~ ~0 ~ w ~ ,\.~ ~ ~ >. ~~ \ ~ ~'~" ~ ] '" f-. ~ ~ l ~. ~ l\~~ ~ - ...... ~ ~ ~ '" ~ 1- <- ',", ., ex '---' \ ~ vi\. z \J'\ ~ . - -!>- '-----' ~ U I'r.- - <1 C ;,.- v c ~ ::r 0.. <1 0:: c: - ---. ~{ ,... .' \C . 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