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Home My WebLink AboutEDA March 19, 2002 CITY OF ANDOVER 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 MEETING MARCH 19,2002 - 6:00 P.M. CONFERENCE ROOM A AGENDA 1. CALL TO ORDER 2. APPROVAL OF MINUTES (2/5/02) (2/6/02) (3/6/02) 3. UNITED PROPERTIES _1ST Amendment to Development Contract 4. ENVIRONMENTAL INDEMNIFICATION AGREEMENT - Hans Hagen Homes 5. NEXT MEETING - March 26, 2002 6. ADJOURN (0 , CITY OF ANDOVER 1685 CROSSTOWN BOULEVARD N,W,. ANDOVER. MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US TO: President and Commissioners ofthe Andover Economic Development Authority CC: John Erar, Executive Directorf" FROM: Vicki Volk, City Clerk SUBJECT: Approval of Minutes DATE: March 19,2002 INTRODUCTION The following minutes have been provided by TimeSaver Secretarial Service: " , J February 5, 2002 Regular EDA Meeting February 6, 2002 Regular EDA Meeting (Hokanson absent) March 6, 2002 Regular Meeting (Nowak absent) DISCUSSION Copies of the minutes have been e-mailed to all members of the EDA with hard copies provided to Councilmembers Knight and Trude, and resident members Hokanson, Nowak, Schultz and Larson. If you did not receive any of the minutes, please contact the City Clerk. ACTION REOUIRED The Economic Development Authority is requested to approve the above minutes. Respectfully submitted, fl1.-; t/# Vicki Volk J City Clerk CD , , CITY OF ANDOVER f 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.C1.ANDOVER.MN.US TO: EDA President and Chair FROM: John Erar, Executive Director SUBJECT: United Properties - First Amendment to Development Contract DATE: March 19,2002 INTRODUCTION At March 6, 2002 EDA meeting, the Board reviewed issues associated with the purchase of additional property by United Property for the private construction of Quinn Street. In addition, several items were raised by United Properties regarding the option agreement in terms of "partial takedowns". DISCUSSION Key points of review for the EDA include: I) The Board discussed the issue of partial take downs as undesirable to the extent it may affect the future marketing and development of the site. However upon closer review, United Properties has countered with additional language that the EDA may wish to consider as it clarifies the terms and conditions of denial regarding the partial takedown of the option property. I have attached a copy of the original letter of intent, with a diagram of the optionable parcels indicated as B, C, D, E and F, 2) United Properties has added language indicating that the ponding area would not be included in the optionable property land costs. Essentially, the ponding area would be excluded for purposes associated with the future land sale, however the developer would still benefit from this water amenity. From staffs perspective, the EDA as the property owner would be selling only the land surrounding the pond and would remain as the owner of the pond. Questions regarding this language in terms of the sale arrangement should be discussed by the Board, but appear to be consistent with the original Letter of Intent. 3) United Properties has added additional language defining restricted use for the competing sale of groceries, Page A-3-1. In response, staff suggests placing a limitation on the No Grocery Use Restriction by instituting a time period where if no grocery store operation exists for a period of 24 months, then the EDA is free to market other EDA owned property for grocery store uses, ACTION REOUIRED For Board review and discussion. , , . i :T1 > ~~~ ~~!l:::S > J:::m::: . !! ~ i: 3 a .<> :! '" _. ~ ~ n -, i:l " ~ . -"Il ~,,~~S- =23~ to.> :[ ~ 0" (If) :1 ~. 0' g., n I'll .g t'& 0 ~ ~ \"!"',.. ~ if Zo ~ ~ ::, ~~ ~ ~~ ~ g !l ~ ~ ~ ~ !: g ~,p; ;l ~ ~il -:r 5"",,:r ="",,,o:r -:r ::l...," ",<;;. oS~ gm _a"'m 32_32m Iil"m z ~~X'8~ I~ ~ >-~~ ~oow~ -~ m 8.< - ill~ ~~i S!l~ [8.~ t~ ~~l~ taS-il=~ 8.~ ~ c~~a -~~ ~~= ~~~ ~O~ -~ ~~~~ mi~~~~ ~~ m 3'1~~ >~a. 2.~'~ ~.:!- F-f~ ~s. g~g.s. 5:~,s'~~s. is. ~ [g~n 3~ (f)~O ~~. ~ ~ (f)ttI E~n ~~on an.. ~_ = 1; ~e: ~ ~':l;l ~1~ i1 la~~ ~its.t;;~ ~~ ~ ~.~~ 3 n!!. 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(lJn2.n5oOQ ~ s:~~a!i:~~ al '< ~ S' it s.. ijj'i 000) ~ N ~ i :.; ~;:; ~'< ~ 3 ~ 0 3.. n["-g>n&, g::l 0 ::l IQ. ::>o'8PJg.E.& '" o S. ::l iiJ g':i '< iil ~ g"g:rn::l'""l~~ " z " 0 So::l.::r (I) ::l tTl 0.. a ,; 1"O-<e.~383ll.1 ~. ~ ~~;;~8..se:~ 0 2' (D Q.~"""I 3 c.S' ;j' 2: ~ ~. ~ ~ Er r;' ~ -< " ;;' ;:Q.o.:Q:~~-;'~ ~ 5. 3:3:~:iag; c. ==rio:rt'l 2. ~:B:~]~~' ~ "[!~.~@;: , , ~ I' I ~ ;;; i .- _u_J' ~I~ J.WiiI ~ IGOOIH ... l"""IlI'!_I~ --- -- Cl , $~~~~ ~ ,.j: ..... ." :I: ,- n 0 '" ! ." X ~ :I: _. I EO I 8 :=1 I ;;i , J '" :>; .J L l [Il .., ,- > r- .., NOUIOO't' H.L. ~ .."..,0 cmI: ---ir 0 z . , "=:,,,.:!.:..:c . . ---.....-- I J!' 0<) ~ - ...ftl', j "'J~ '" '0; "" 0 V}fONV .olO ).J.Nn J:J H:~^OUNV dO )..1.1;) I 4- NO!'!' V,U~; U,';f ;lOaNV ./ 03/14/2002 22:59 UNITED PROPERTIES 7 97537558923 , NO,213 [;103 . ~ ,. Thursday, Febnwy 01, 2001 I Michael Mulrooney Advance Resources for Development, Inc. 3960 Springbroak Drive, Suite 230 Coon Rapids, MN 55433 Dear Michael: After careful consideration, I am pleased to provide the following Letter of Iment (L01) 10 purchase approximately 19,3 ams of land located approximatelybetweell Thrush St. NW l!lId Quinn St. NW on Bunker Lake Blvd., in Andover, MN, as apprc>>dmately shown on Exhibit A lI1tached. If you are in agreement willI the following tums and conditions, please sign below and return. This Letter of Intent is not a legally binding dOCllment. The parties will only be bound by a mutually acceptable, fully executed, fonnal DevelopmenllPurcl1a.se Agn:ement incorporating the terms and conditions of this 10J along with other mutually acceptable tenus and conditions panicular to this proposed transaction. \ Property Descriptlon: Approximately 19.3 aeresat the / BE Quadrant oIThrush 51. NW and Bunker Lake Blvd" Andover, MN; as approximatcly shown by ClOSS batch on E>dlibit A as those portions of Parcel A, Parccl B and Parcel G , to be specifically defined in a ronnal Purchase Agreement, based on a survey. All assessments levied or deferred prior to Closing to be paid by the Seller. Se.ller: Andover Economic Development Authority Buyer: United Propenies InvestmenlllC 3500 West 80lD Street, Suile 200 Bloomington, MN 55431 I Pnrc:hnse Price: $3.20 per square foot as shown by tile SUlVey Earnest MOlIey $.50,000.00 deposited wilb ESCtow Agent upon execution of tile Purchase At;reemenl Escrow money applicable and refundable during the first The Buyer's Contingency Period. The escrow money is non-refundable after the Buyer's Contingency Period, but applicable towards the purchase price. Buyer'8 Contingency I Period: One-hundred and twentY (l20~ days after receipt of ulllv execured Purchase Aereement: 1. Buyer sha11118Ve bun able to obtain all necessary governmental approvals and I permits with regard to nll applicable environmental, conmuction, zoning. platting, signage, and oilier land and business use laws. ordinances and regulatiops and cedes for the constnlction and/or use of the Property as Buyer intends. It is undCl'Stood that Seller luts developed a maSler plan for the property and Buyer intends to place commercial and residential uses in the Seller's designated areas with building , / elevations similar to Seller's il1tel1lions. Buyer intends and agrees to have Hans Hagen Eomes develop in the residential area, , I Docil1362419\2 MAR 1S 2002 11:10 952+893+8804 PAGE. 03 03/14/2002 22:5'3 UNITED PROPERTIES ~ '37637558'323 NO,213 Gl04 ,..;. ,. 2. Buyer shall be allowed 10 inspect the Propeny, including performing soil tests and / drilling, SUNeyS and environmental tests, and Buyer shall have detenr.ined that the property meets with Buyers approval, including other assessments sucll as utilities and environmental suiUlbility, 3. Buyer shall have been able to determiru: the costs of Buyer's proposed development for the site and the feasibility of such a proposed project based upon said costs. Said costs must be acceptable to Buyer in Buyer's sole judgement and discretion. Date of Pun:hase: Within thirty (30) days after the a'Pirauon of !he Contingency Period, Option to Purchase: Buyer shall have an option to purchase adjacent land as shown on Exhibit A as; the bala.nce ofParccl 8, Parcel C. Parcel D, Parcel E, and Parcel F for a one (1) year period commencing as o1'\he Closing Date of the Property, at the price as setfor1h above forlbe Propeny. and on S\\cb other murually acceptable tenus to be set forth in the Putthase Agreement. Third Parties: Seller agrees that, from the dale aEthe execution oft1l.is LOI, Seller will Dot conduct any negotiations or discussions wid, third patties concerning the possible purchase and sale of the Property. Seller agrees thai this offer and tenns shall be confidential. Broker Commissions: Seller responsible for paying real estate commissions on sale ofPropeny to its brokers (Advance Resources For Development, Inc). Option to Extend Purchase Agreement: Buyer shalll13ve two (2) options to extend contingency period by sixty (60) days each by , paying to Seller a fee of 520,000.00 for each sb..-ry (60) day pc:riod. Said e,.1eIlSion fees ; shall be deemed additional Earnest Money and non-refundable. but applicable towards the Purchase Price, This LOI is valid until FebruaIy 9,2001, at 5;00 p,m. I!thc above terms and conditions are acceptable, please have the appropriate party sign below and return, After receipt of this signed L01, a formal Purchase Agreement will be forwanfed to you for your review incorporating the tennsllnd conditioll5 of this LO!. It is understood that, tllis LOI is not a legally binding document. The panics will only be bound by a mutually acceptable, f'lllly executed, fonnal Purc1lase Agreement incD1]XlJating the ternlS and conditions of this 101 along with other muroally acceptable terms and ccnditions particular to this proposed transaction. Please feel free to call me if you have any questions. My direct line is (612) 893-&887 and my fax number is (612) 893.8804. Sincerely. BUYER SELLER Z~CtLL Andover Economic Development Authority 1 Bruce D. Carlson Vice President of Retail Development I I I / cc: Frnnk Dutke, United Propenies : 101m Breitinger, United Properties Dcc:1I1J62419\2 MAR 15 2002 11:10 952+893+8804 PAGE. 04 03/14/2002 22:59 UNITED PROPERTIES ~ 97637558923 NO.213 [;105 "--. ... .... :> . Mike Sims, United Properties Hans Hagen, Hans Hagen Homes , , I I ! ! i , , I I I I 'I Doc~ 13rS241gU MAR 15 2002 11:10 952+893+8804 PAGE,05 03/14/2002 22:5g UNITED PROPERTIES ~ g763755Sg23 , NO.213 Gl06 ~- FEB 01 '01 09:41 FR LINDQUIST VENNUM 612 371 32B7 TO 103?~123123~0400 P,02/02 I . Oi/311200~ 17:41 PAl 415 ~Sl 5713 Amer1can Audio visual ~OO2 WI, 3!, aUla 3: 33FM FR LJNOOUIST l.I8+lUM 612 371 ~ TO la37111C?3~aiNO. 7381~E? 2 , .- cu,....~..vJ,. .:.ID~_.. ~"'..LM ~.'Wl.....'...... . _..._t ..-...... . --' -... I 51 ~- " .l :..:.. I --' L !-" I iti I <- I l~!t t I ... ~ Q I' I ~: to , I - "-CDt-- a ,.cc.tt,O II "'I&Il~ . ~ . T ~WII ...c,~1I)- I I - \ ~ ...... , , "'.... cfU ... I I ,- , -.... ---- I I ~- , :? I \ I " " r " . ~ :tt'1 , :.:1. I " - n I I . ,.... I ..;:; .-. .~. . " I t'? ..,. . ~: I ,.. ":1 I . .. , ri.. IIi. I .~. I I:;: !1 m G: 1'-" w I '" ~.. ...... .:~. 311 ," ~~ I I , ~O( I , l.tl I ," .- . , ,.. ..~: t-'\' i ..,1. 1;1 I I" I : ...~ !.I~ lY. .u 1 ..... I , ~ I ,.-, i.~S \ ::!1: ..~ I I - , , I , I t , , - I . '. . ..\ ~ 5 fl1 .,1.. ...,- ..... ...e :~; ::r~ ~ .e~ 1a=Sa 61a 893 eoo. 1', GE a<< ! JAN J~ 'Bl 19:4l 41"i :'lcn <;71"l P~r.~ "'~ MAR 15 2002 11:11 ** TDTAL PAGE.02 ** 952+893+8804 PAGE. 06 (j) , 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 President and Chair FROM: John Erar, Executive Director SUBJECT: Hans Hagen Homes - Environmental Indemnification Agreement DATE: March 19, 2002 INTRODUCTION Issues related to the environmental liability of the residential site component continue to be raised by Hans Hagen Homes, DISCUSSION Hans Hagen Homes have raised several questions regarding the environmental aspects of the site, The following are questions raised by Hans Hagen Homes (HHH) and the responses I have , provided to United Properties on behalf of HHH> 1. What is the business relationship between the City and EDA? Does the City assume obligations of EDA if the EDA is dissolved or bankrupt? Response: The EDA and City are two distinct legal entities, Should the EDA be dissolved, the City does NOT assume any obligations, 2, HHH desires to close directly with the EDA on the matter of the environmental agreement, Response: HHH will be allowed to close on the property directly with EDA, A separate Environmental agreement will be drafted with HHH, 3, HHH requests that the City remove, at their cost, any monitoring wells when they are no longer required for water analysis, Response: City agrees to remove monitoring wells at our cost subject to direction by the MPCA or USEP A to remove such wells, 4, HHH requests that the EDA provide verification of the soil piles located on the site are acceptable as landfill for residential use or remove the soils from the site, at HHH option Response: EDA agrees to either test or remove soil piles. EDA is in process of obtaining quotes to test soil piles, This will be at EDA option, not HHH, Based on the information provided to-date, it appears that the estimated cost for testing the soil piles is approx. $10,000. The additional site testing quoted would be an additional $22,000, 5, HHH requests that the EDA provide a "No association letter" on site regarding environmental Issues. Response: We will need to research the costs for the No association letter, 6, HHH is requesting that the time period of environmental indemnification be extended from 1 year to 12 years in the agreement, Response: Discussion with the EDA Board ACTION REQUIRED For Board review and discussion. Respectfully submitted, ~ \