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HomeMy WebLinkAboutApril 19, 2005 ~NDbVE~ C!-G- L\..-\c-vC Q..:.L. L0lCtcJ'l 5-11~ c:S 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING April 19,2005 6:00 p.m. Conference Rooms A & B AGENDA I. Call to Order 2. Approval of Minutes - April 5, 2005 3. Update Purchase Agreements-Caseyfframm 4. Update on Letters ofIntent 5. Update Andover Station North Improvements 6. Other Business 7. Adjourn / CITY OF NDOVE ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 19, 2005. MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, April 19, 2005, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Absent: Also present: Commissioners Don Jacobson, Mike Knight, Ken Orttel, Julie Trude; Voting resident member Robert Nowak Edward Schultz, Advisor to the EDA Executive Director, Jim Dickinson Community Development Director, Will Neumeister City Engineer, David Berkowitz Others Present: APPROVAL OF MINUTES April 5, 2005: Correct as written. MOTION by Knight, Seconded by Orttel, approval of the Minutes as written. Motion carried unanimously. UPDATE PURCHASE AGREEMENTS - CASEYITRAMM Community Development Director Neumeister stated staffhas been in discussions with Mr. Casey and Mr. Tramm regarding their purchase agreements. Mr. Neumeister noted a change to the size of parcel I, increasing it by twenty feet. Commissioner Trude asked if this would make it difficult to get a restaurant in there. Mr. Neumeister did not think it would. Commissioner Trude asked if there is an escalator on the property for Tramm. She wondered if they are going to be giving Tramm eight months free. Mr. Neumeister stated they would not. Mr. Dickinson stated the main thing is the closing and the earnest money is non-refundable. Commissioner Nowak asked ifthe agreement is transferable. Mr. Neumeister did not mow and noted he would need to look at the contract for information on this. Commissioner Orttel thought they should be looking at this a little closer because this will be Andover Economic Development Authority Meeting Minutes - April J 9, 2005 Page 2 going on two years at the 2004 property value price. Commissioner Jacobson stated he did not see a right of refusal in the agreement. Mr. Neumeister stated the City Attorney indicated this is a separate document. He did not think there was transferability on the property ifhe decides not to build on the property. Commissioner Trude stated this is more like an option and not buying the land outright. She stated it is holding the land for Tramm so no one else could come in and buy it. Commissioner Trude thought they should have the City Attorney at the next meeting to give them input regarding this. Mr. Neumeister thought because ofthe questions, they may want to postpone this until the next meeting. Commissioner Jacobson thought they should get a plan from Tramm on a proposed use. Commissioner Orttel asked what changed in the Casey plan. Mr. Neumeister stated the change in the Casey plan is the additional twenty feet. Commissioner Trude stated on the Tramm plan they want to include a contingency on building within a year. She stated on the Casey plan, she thought he was going to do more landscaping instead of parking. Mr. Neumeister stated he would like more parking stalls along Jay Street with more landscaping along there. Mr. Neumeister stated Mr. Casey would have to have the location sign on his own parcel. Motion by Jacobson, seconded by Trude, to approve the additional twenty feet onto the Casey property. Motion carried unanimously. Mayor Gamache asked on the Tramm site, how soon they would be able to get into the site if they did not want to postpone building. Mr. Berkowitz stated mid June would probably be the earliest. UPDATE ON LETTERS OF INTENT Community Development Director Neumeister stated there has been a new "Letter of Intent" received related to a lot located in Andover Station North, directly north of First Regents Banle The person submitting the letter of intent is Mr. Louis Rudnicki and he explains in his letter that he would like to develop a retail strip center that would be 7,500 square feet in size, with expansion potential. EDA needs to review it and provide staff direction on whether there is interest in preparing purchase agreements on this particular parcel for this use. Mr. Rudnicki made a presentation to the EDA. It was noted the applicant is looking at April 2006 for the closing and construction date. Andover Economic Development Authority Meeting Minutes - April 19, 2005 Page 3 Commissioner Jacobson indicated the parking will be facing Jay Street. He asked if people would need to park in the back and walk around to the front. Mr. Rudnicki stated with the dance studio, they would incorporate a rear entrance so they could access the building from the parking area in the back. Mr. Rudnicki asked for an allowance for an on-site dry cleaner with on-site processing. He stated Mr. T's cleaning would be willing to give a tour of their site in Coon Rapids and the distributor would be willing to come in and discuss the issues. Commissioner Knight stated this is what he is concerned with because ofthe potential pollution and poisons being emitted into the air. He would like to have someone come in and discuss this with them. Commissioner Trude thought this would need to have a variance because she did not think it is an allowed business in Andover Station North. Mayor Gamache thought it would be a good idea to tour the Coon Rapids facility. Commissioner Orttel thought staff should check on what Coon Rapids allows regarding this. Mr. Neumeister stated they will try to talk with Regents Bank regarding a private drive that will be shared with all the properties. Mr. Neumeister stated they can try to get this shared access but they could not guarantee it. Commissioner Trude thought if Mr. Rudnicki could not get the dry cleaner in, they may want to get in a fast food restaurant. Mr. Rudnicki stated there is potential for a drive thru on the property with the front facing Jay Street. Mr. Rudnicki thought there was room to have two buildings adjacent to each other. Mr. Rudnicki's banker stated they may have a problem initially if they build two buildings because of the financing. This needs to be an owner occupied building. Commissioner Knight wondered if there were two buildings, would there be enough parking for both buildings. Mr. Rudnicki thought there would be. Commissioner Knight asked if there was a restaurant on the other piece would there be space for parking on the other site for a sit down restaurant. Commissioner Orttel asked if this is the same price per acre they talked to Oppidan about. Mr. Neumeister stated Oppidan wanted $5.25 over the whole site. He indicated Oppidan felt the front area was around $9.00 and the back area was around $3-$4. I Commissioner Jacobson stated he did not like the $3.18 per square foot plus $.32/s.f. for park dedication fees because by the time Mr. Rudnicki actually builds, the park dedication fee may be Andover Economic Development Authority Meeting Minutes - April 19. 2005 Page 4 more. He thought the price should be $3.50/s.f. Commissioner Orttel thought they should show this as a gross amount for their record keeping. Commissioner Trude wondered what they got from Regents Bank for the land. Mr. Dickinson stated it was $4.00/s.f. Commissioner Trude wondered if Oppidan I would be a better piece of land for the dance studio. She thought Oppidan II may be a better site for a restaurant. Mr. Neumeister thought Oppidan II is more valuable because it is on Jay Street and a site that has better site value. Commissioner Orttel asked if there would be access to Oppidan I from the Casey property. Mr. Neumeister stated they need to discuss this because staff told Mr. Casey there will need to be a private driveway and Mr. Casey will need to pay for part of this. Commissioner Trude thought this would be a mistake not having a public road in there. She thought they could have a road maintained and owned by the association instead of Mr. Casey because they need to have a way to get to and sell the property in the back. Mr. Rudnicki's banker stated a private drive is also a question because of the financing and they cannot finance a project without knowing all of the costs. Mr. Rudnicki thought if they were leasing space as a dance studio, location would not be a problem but if they plan on buying the land and renting to tenants, they would like a better site to help pay for the project. He thought the $3.50 per square foot was reasonable because of the price of the surrounding property. Commissioner Trude thought ownership was the question with the private road. Mr. Neumeister thought all of the property owners would share ownership and the City would maintain easement over the road for utilities. Mr. Neumeister thought the cost of utilities would be $1.00 per square foot along Jay Street. Commissioner Orttel did not think they were out to make money in this; they want to clean up the area and establish a tax base. Commissioner Knight thought they need to keep in mind what other properties in the City are getting for commercial. Commissioner Trude felt they need more information on this. Mr. Neumeister asked if there was any way to run the building east/west so it did not interfere with the visibility of the building in the rear. Mayor Gamache thought the view may be blocked from Bunker Lake Boulevard by the bank ifthe building is turned. Andover Economic Development Authority Meeting Minutes - April 19, 2005 Page 5 Commissioner Knight thought the people on Jay Street will be there for a reason, not by chance so it did not really matter if the building in the rear could be visible by Jay Street or not. UPDATE ANDOVER STATION NORTH IMPROVEMENTS There was not enough time to discuss this item. OTHER BUSINESS There was none. Motion by Knight, Seconded by Jacobson, to adjourn. Motion carried unanimously. The meeting adjourned at 7:00 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary