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1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100
FAX (763) 755.8923 . WWW.CI.ANDOVER.MN.US
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
June 21, 2005
6:00 p.m.
Conference Rooms A & B
AGENDA
1. Call to Order
2. Approval of Minutes - June 7, 2005
3. Andover Station North (continued from June 7, 2005)
'\ 4. Letters of Intent
5. Financia~ Update
6. Other Business
7. Adjourn
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ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
JUNE21,2005-MINUTES
A Meeting of the Andover Economic Development Authority was called to order by President Mike
Gamache, June 21, 2005, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Also present:
Commissioners Mike Knight, Ken Orttel, Julie Trude; Voting
resident members Joyce Twistol and Robert Nowak
Commissioner Don Jacobson, Non-voting resident member
Edward Schultz
Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
City Engineer, David Berkowitz
Others
Present:
Absent:
APPROVAL OF MINUTES
June 7, 2005: Correct as written.
MOTION by Orttel, Seconded by Trude, approval of the Minutes as written. Motion carried
unanimously.
LETTERS OF INTENT
Executive Director Dickinson explained staff is continuing to pursue letters of intent for Andover
Station North on a daily basis.
Mr. Dickinson stated he has been in contact with the office condominium parcel but they are not
ready yet. He stated they are very interested in the parcel.
Commissioner Trude wondered ifthere was anything new with the County. Mr. Dickinson stated the
timing will work out fine.
FINANCIAL UPDATE
Executive Director Dickinson stated as development in Andover Station North proceeds and
Andover Station South is wrapping up, staffthought it would be appropriate to update the EDA on
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Andover Economic Development Authority Meeting
Minutes - June 21, 2005
Page 2
the financial position of the tax increment district that is financing the development.
Mr. Dickinson discussed the financial information with the Commission.
Commissioner Trude wondered what the Casey parcel price was for. Mr. Neumeister indicated it is
around $200,000.
Commissioner Trude asked what tax was coming in. Mr. Dickinson indicated this would be in the
column that says projected per year plus two percent. Right now they are receiving close to 1.2
million a year. With the new buildings they have added such as Target, they will have some tax
increment coming in. There is no increment calculated for the new land sales yet.
Mr. Dickinson stated these are TIF District 1-1 (Old Junkyard sites, Andover Station North and
South) and 1-2 (downtown center). Downtown Center and the cash flow from the downtown center
built Andover Station.
Mr. Dickinson stated 2013 is when the TIF District ends and they will need to de-certify the District.
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) Commissioner Nowak asked ifthey would have to complete the project by 2013 or just have in place
contracts and agreements. Mr. Dickinson stated they would need to service all of their debt by that
time. He stated land sales could do it. He did not see them buying a lot ofland to sell after Andover
Station North is done.
Mr. Dickinson stated they are going to start calling in some of their debt. This will allow them to
gain a couple hundred thousand dollars income to use on projects. They only have one bond at this
time that they can call so that may be implemented next year; He stated that the cash flow is looking
pretty positive but if they do not see a forecasted land sale they may want to wait until 2007 to call
the debt.
Commissioner Trude wondered if they should start taking control of some land around Andover
Station North or should they let the private sector handle this. Mr. Dickinson stated there are a
number of options and their focus has been on marketing Andover Station North. He stated they
would like to come back to the Commission in the next year on potential areas that can be looked at
for development.
ANDOVER STATION NORTH (CONTINUED FROM JUNE 7,2005)
Community Development Director Neumeister explained this item was carried over from the last
meeting on June 7, 2005. At the May 17,2005 EDA meeting staff was directed to prepare a
concept plan for the southern twenty acres of Andover Station North.
Mr. Neumeister reviewed the concept plan with the Commission.
/ Andover Economic Development Authority Meeting
Minutes - June 21, 2005
Page 3
Commissioner Trude asked if the site where the strip mall area is similar to what they had open
in one. Mr. Neumeister stated that was around forty thousand.
Commissioner Knight asked how big the liquor store is. Mr. Neumeister stated it is about 12,000
square feet.
Commissioner Trude asked ifthis is similar to United. Mr. Neumeister stated it would be bigger
and then United would lease their area to something else such as a restaurant. Mr. Dickinson
stated you would license the liquor to the area and the business.
President Gamache stated the way it is drawn up for the liquor strip mall would have frontage on
Bunker. Mr. Neumeister stated that is based on the road to the west. Ifthe road does not go in
there will probably not be any retail there. Mr. Dickinson stated they needed to get the road
otherwise the retail will go away.
Mr. Berkowitz stated the feasibility report will have two options for connection.
" Mr. Rudnicki was present at the meeting to answer questions of the Commission regarding parcel
4.
President Gamache stated his hope was that Lot 4 would develop into some type of restaurant.
At this point he would want to try to stay with that piece as the restaurant site. Commissioner
Knight stated he would prefer a restaurant site also.
Commissioner Orttel wondered what the appraisal was on the property. Mr. Dickinson stated
they did not get an appraisal on that property yet.
Commissioner Orttel wondered why they could not put Mr. Rudnicki's plan on the Play Ventures
of Minnesota site. He wondered if it would be a possibility to subdivide the Play Ventures land.
Mr. Dickinson stated it could.
President Gamache stated the site on number four, what is the largest building that could there.
Mr. Neumeister stated ifit is an L shaped building, it could be around 10,000 square feet but ifit
was a restaurant, it would be smaller.
Commissioner Knight asked what the acreage is on parcel three. Mr. Neumeister thought it was
roughly an acre and a half.
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Commissioner Knight asked when they are talking about a restaurant are they talking about a full
sit down restaurant with liquor or a family or fast food restaurant. Mr. Dickinson stated it
depended on what type of restaurant would want to come in. He did not think it would be a fast
food restaurant.
Commissioner Trude stated her opinion has not changed. She thought they were going to wait
Andover Economic Development Authority Meeting
Minutes -June 21,2005
Page 4
for a restaurant.
Mr. Dickinson asked if the Commission would be open to using a broker for finding a restaurant.
Commissioner Orttel stated they would need to negotiate a price but he would be open to it.
Commissioner Trude stated they need to get in more daytime businesses for a restaurant to work.
Commissioner Trude wondered if they could use the back part of parcel three for Mr. Rudnicki
and shorten the strip mall. Mr. Neumeister stated they could look at doing this ifthey used the
zero lot line on this site like they did with the Casey site.
President Gamache thought parcel four would be a good site for a restaurant because when
Bruggeman is done, people will be walking along there all of the time and the ball fields will
bring in people and all of this will need a restaurant. He stated he would still like to have Mr.
Rudnicki in the area but he may want to consider another lot.
Mr. Dickinson recapped the area and what the EDA wanted for the area.
Commissioner Trude stated when dealing with the liquor parcel, she would be ok with it as long as it
is a moved use and not an additional use.
OTHER BUSINESS
Mr. Neumeister discussed with the Commission an idea for the area in front of Festival Foods.
Motion by Trude, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:55 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary