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HomeMy WebLinkAboutMay 17, 2005 ~NDbVE~ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER. MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING May 17, 2005 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order 2. Approval of Minutes - April 19 and May 3,2005 3. Andover Station North Development 4. Letters of Intent/Purchase Agreements Review 5. Other Business 6. Adjourn C I T Y 0 F NDOVE ~-t, Q/.V ~ h-l-OS> ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING MAY 17,2005 -MINUTES A meeting ofthe Andover Economic Development Authority was called to order by Vice President Julie Trude at 6:05 p.m., Tuesday, May 17,2005 at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Commissioners Present: Joyce Twistol, Mike Knight, Ken Orttel, Mike Gamache (arrived at 6: 14 pm) Don Jacobson, Robert Nowak Jim Dickinson, Executive Director Dave Berkowitz, City Engineer Will Neumeister, Community Development Director Others Commissioners Absent: Also Present: APPROVAL OF MINUTES '\ .I Motion by Knight, seconded by Orttel to approve the minutes of May 3, 2005 and April 19,2005 as written. Motion carried. (Commissioner Twistol abstained on approval of the April 19, 2005 minutes.) ANDOVER STATION NORTH DEVELOPMENT Mr. Neumeister noted that he met with a company looking for a light industrial site for a bindery operation. They were quoted a price of $2.60 to $2.65 a square foot as well as a 10% park dedication fee. The health food company is interested in leasing rather than buying a site. A local builder might be willing to build the building and then the health food company would lease a space. Vice President Trude noted that between the two we would have a couple of hundred employees during the day. Commissioner Knight stated that he received a letter from a woman concerned with the ballfields and asked if we are cutting back on the size of the fields. Mr. Berkowitz stated no. Mr. Dickinson explained that the Mayor sent a response to her explaining what we are doing. President Gamache arrived - 6:14 pm) Mr. Neumeister noted that the negotiations on the Brad Povlitzki property have been completed. '. Economic Development Authority Meeting May 17, 2005 - Minutes Page 2 .' Commissioner Trude asked what would be across from the lot north of Casey I and II. Mr. Dickinson stated that area contains wetlands. LETTERS OF INTENT/PURCHASE AGREEMENTS REVIEW Mr. Neumeister explained that Mr. Rudnicki would like to develop a 7500 square foot retail strip center with potential expansion. Louis Rudnicki stated that at the present time the bank property is probably worth $5.40 per square foot with direct access to Bunker Lake Boulevard and Jay Street. The parcel he is considering has frontage on Jay Street but no direct access. In addition to the sale price, there will be another $30,000 for the road that will require maintenance and repairs. He feels that $3.50 per square foot is a reasonable price. They would rather put more money into the building than in the land. As part of an SBA loan, the building has to be owner occupied and if they sell the building within 10 years there is a significant penalty. He feels that his dance studio would be an asset to the community. \ / President Gamache asked ifhe would consider a front forward design or two buildings. Mr. Rudnicki stated that because of the requirements of the SBA loan they would not be able to do two separate buildings. However, a double fronted building would work. Commissioner Trude asked what portion ofthe building the dance studio would be. Mr. Rudicki stated 60%. Commissioner Trude asked what the other area would be. Mr. Rudnicki stated that they are proposing a dry cleaner with on site processing. Commissioner Trude asked if the dry cleaner would be 3000 square feet and the dance studio 4500 square feet. Mr. Rudnicki stated yes. He also noted that a kick-boxing studio has expressed an interest as well as a chiropractor. The idea of a fast food restaurant came up at the last meeting and there is room for that. Commissioner Trude asked if Mr. Rudnicki would be willing to look at the site to the east so this site could be preserved as a restaurant site. Mr. Rudnicki stated that he would like to find a way to make this work. Commissioner Knight asked what the utilities cost is for this site. Mr. Neumeister stated it's two million dollars to grade and build the road which comes to about $1.00 per square foot. '. I Mr. Dickinson asked if74,000 square feet is needed for this project. Mr. Rudnicki stated that is probably more land than is needed. He asked Mr. Dickinson what they would do with the rest ofthe land. Mr. Dickinson stated they are trying to figure that out. Mr. Dickinson asked the EDA if they want staff to continue to work with Mr. Rudnicki on his proposal. Economic Development Authority Meeting May 17,2005 - Minutes Page 3 Commissioner Orttel asked ifthese businesses have to pay area charges. Mr. Berkowitz stated they pay area charges but not laterals. Commissioner Trude stated that this was going to be a restaurant pad. Mr. Neumeister noted that he received a call from a party who would be willing to build a retail center and would pay $5.00 per square foot. Mr. Neumeister explained that at the last meeting he brought up the uses in the guidelines and they do not include a dry cleaner with processing. Mr. Rudnicki stated that they are not willing to let their request for a dry cleaning business get in the way of their coming in here. Mike Mulrooney asked the EDA to keep in mind that the building finish will be similar to what is in Riverdale. The EDA needs to look at loan to value. Ifhe ends up paying more than what the property is appraised at that is more money coming out of his pocket. If the property costs get too expensive, they will affect marketability as far as getting tenants. " Commissioner Trude noted that they had a discussion on this at a previous meeting and said it should be kept as a restaurant site. Mr. Dickinson asked the EDA if they want staffto work with Mr. Rudnicki on either the Oppidan I or Oppidan II sites. Commissioner Twistol asked if this is the first parcel to be sold in this area. Mr. Dickinson explained what is going on with the other parcels. President Gamache stated that at this point he thinks the EDA is looking for something different on this site. Commissioner Trude noted that we need to have businesses that have jobs or the restaurant is not going to make it. Commissioner Orttel felt that the lots should be broken down into smaller sizes. He asked why we don't have a sign out there that says "Retail Sites Available". President Gamache stated that the EDA is still interest in keeping the piece Mr. Rudnicki is looking at for something different and staff should work with Mr. Rudnicki. Motion by Trude, seconded by Knight to adjourn. Motion carried unanimously. '. Meeting adjourned at 7:00 p.m. Economic Development Authority Meeting May 17, 2005 - Minutes Page 4 Respectfully submitted, (LL. ()d Vicki V olk City Clerk \.