HomeMy WebLinkAboutJuly 19, 2005
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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
July 19, 2005
6:00 p.m.
Conference Rooms A & B
AGENDA
1. Call to Order
2. Approval of Minutes (Reg. EDA Mtg. 7/5/05; Exec. Session 7/5/05)
3. Andover Station North Development Improvements Update
4. Discuss Site Plan Layout (Lot 5, Block 3, Andover Station North)
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5. Letters ofIntent (KnowlanlHanson Proposal)
6. Discuss Finders Fee for Lot Sales (Andover Station North)
7. Other Business
8. Adjourn
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CITY OF
NDOVE
ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING
JULY 19,2005 -MINUTES
A Meeting of the Andover Economic Development Authority was called to order by Commissioner
Mike Knight, July 19, 2005, 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW,
Andover, Minnesota.
Absent:
Also present:
President Mike Gamache (arrived at 6:05 p.m.), Commissioners
Don Jacobson, Mike Knight, Ken Orttel, Joyce Twistol.
Julie Trude; Robert Nowak; Edward Schultz.
Executive Director, Jim Dickinson
Community Development Director, Will Neumeister
City Engineer, David Berkowitz
Others
Present:
APPROVAL OF MINUTES
July 5, 2005: Regular EDA Meeting - Correct as written.
July 5, 2005: Executive Session - Correct as written.
MOTION by Jacobson, Seconded by Orttel, approval of the Minutes as written. Motion carried
unanimously.
ANDOVER STATION NORTH DEVELOPMENT IMPROVEMENTS UPDATE
Community Development Director Neumeister stated the public improvements for Jay Street are
right on schedule. Some sections are ahead of schedule such as the first two hundred feet of Jay
Street that is now open to traffic. The contractor will be completing the balance of the work by
late August or early September.
Mr. Neumeister explained staff met with the City's consulting engineer (SEH) to begin the plans
for the utility and street work to complete the needed improvements to serve the southerly twenty
acres. The City Engineer, David Berkowitz, has talked with North Pine Aggregate, the prime
contractor, and they are interested in doing the work under the original contract.
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Commissioner Orttel wondered when this was bid. Mr. Neumeister thought it was either
February or March.
Commissioner Orttel wondered if they are willing to hold the bid. Mr. Berkowitz stated they are.
Andover Economic Development Authority Meeting
Minutes - July 19, 2005
Page 2
Commissioner Orttel wondered were the funding is coming from. Mr. Neumeister stated Mr.
Dickinson bonded for this as a larger improvement than it actually was so this will be included in
the bond.
President Gamache arrived at 6:05 p.m.
Commissioner Jacobson asked if this is a State Aid project, how they can add into the cost. Mr.
Berkowitz explained how State Aid and bond funds will work.
Commissioner Orttel asked when they bonded this, did it include all of the improvements. Mr.
Neumeister stated it did.
DISCUSS SITE PLAN LAYOUT (LOT 5, BLOCK 3, ANDOVER STATION NORTH)
Community Development Director Neumeister stated at a recent meeting of the EDA, the site
plan for the southerly 20 acres was discussed. Although there was discussion, no conclusion was
reached regarding the site plan for the site known as Lot 5, Block 3. The subject property is
approximately 3.5 acres in size and the site plan concept that was discussed was that the property
could be made into two sites. It was suggested that Louis Rudnicki could potentially build a
retail strip center that would include a dance studio and dry cleaners on the northerly portion and
Bruce Knowlan and Mike Hanson could build on the southerly portion. Mr. Rudnicki has
indicated he would like to get feedback from the EDA regarding whether the EDA would require
that the building he is interested in building be connected to the one that is being proposed by
Bruce Knowlan and Mike Hanson, or whether it could be a free standing building.
Mr. Neumeister discussed the information with the Commission.
Commissioner Knight asked if they have one building, does that boundary carry across so the
boundaries are separate properties. Mr. Neumeister showed on the map the layout of the
building.
Commissioner Knight asked if this would be separate ownership. Mr. Neumeister stated they
would be separately owned and they would maintain the parking lot together and would have to
work this out between themselves. He stated otherwise they would have separate buildings.
Mr. Neumeister explained how he came up with the different prices for the properties.
Commissioner Orttel stated if they do decide on separate buildings, it would be a minimal
separation.
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President Gamache stated by having trucks use the back road, it would keep them out of the front
parking lot.
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Andover Economic Development Authority Meeting
Minutes - July 19, 2005
Page 3
Commissioner Orttel wondered what the problem is with a drycleaner and if it is a drycleaner in
general or the use of on site processing. Mr. Neumeister indicated it was on-site processing.
President Gamache stated this would be the ideal spot for it in the City if allowed.
Commissioner Jacobson stated he wanted to make sure this was the only area that it would be
allowed in the City so other ones do not pop up.
Commissioner Jacobson asked if they have a split building, wouldn't it make more sense
economically to have one building and have one more space in the building of twenty feet. Mr.
Neumeister stated this would be a decision needed to be made between the two developers.
Commissioner Knight stated the parking lot is much better with one building than with two.
President Gamache indicated the Commission would prefer one building to two but if there were
two buildings, it would not stop the deal.
Mr. Rudnicki indicated he would also prefer one building because there would be better traffic
flow.
LETTERS OF INTENT (KNOWLAN/llANSON PROPOSAL)
Community Development Director Neumeister stated there has been a new "Letter of Intent"
received for a lot located in Andover Station North, located directly east of First Regents Bank
(Lot 1, Block 3, Andover Station North). The persons submitting the letter of intent are Bruce
Knowlan and Mike Hanson. They explain in their letter that they would like to develop a retail
strip center that would be approximately 20,000 square feet in size, of which 10-12,000 square
feet would be the new location for their Northgate Liquor Store.
Commissioner Jacobson wondered iflegally they can say that no other competition would be
allowed. The applicant thought because they are spending a lot of money on a building, that they
do not face additional competition by vacating their spot. Mr. Dickinson did not think they could
do this on former EDA land but he thought it could be done on land currently owned.
Commissioner Orttel thought this should be cleaned up and worded differently to prohibit any
more licenses to be issued which could be hard to do.
Commissioner Jacobson thought this needed to be reviewed by the City Attorney for legality.
\ The applicants wondered if they could even have a time constraint on this.
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Mr. Neumeister stated they could go back and look at a radius restriction on this. He stated they
will look into this and bring it back with further ideas.
Andover Economic Development Authority Meeting
Minutes - July 19, 2005
Page 4
Commissioner Jacobson stated the City Attorney should look into ifliquor is allowed in grocery
stores, what would happen.
The applicant stated the deciding factor would be if they had a right-inlright-out onto Bunker.
Mr. Berkowitz stated they discussed this with the County and they could only get a right-in and
would not allow a right-out; they will have to use Jay Street. The applicants indicated they have
large semis dropping off liquor and he did not know how they would navigate the turns to get out
onto Jay Street.
Commissioner Orttel wondered if they get another developer who would want to develop on this
property, could they break this deal. Mr. Dickinson indicated this is a non-binding agreement.
President Gamache stated the problem they run into is if they take away the bank's right-in and
move it, they will not be too happy.
DISCUSS FINDER'S FEE FOR LOT SALES (ANDOVER STATION NORTH)
/ Community Development Director Neumeister noted as has been discussed in the past, the City
will enlist help in marketing the land in Andover Station North. Recently there has been an
inquiry from" a local real estate agent who is interested in helping locate a buyer for the restaurant
site north of First Regents Bank. There is a need to identify what type of [mder's fee the EDA is
willing to offer this agent should a prospect that he brings forward actually buy the land. Also
would a "finder's fee" be extended to anyone who is able to bring in a prospective buyer that
purchases land in Andover Station North.
Commissioner Jacobson asked how many parcels they have left where they are not under
negotiations. Mr. Neumeister showed the parcels on the map that are left in Andover Station
North for development.
Commissioner Knight indicated he would be willing to offer five percent. Commissioner Orttel
thought they could be flexible on the percentage offered for the different parcels. Mr. Dickinson
thought it would be better for one level fee throughout.
Mr. Neumeister indicated the [mder's fee would not extend to the property that is in negotiations
with Mr. Rudnicki. The Commission concurred.
There was discussion that Mr. Dickinson suggested and the Commission conferred that the finder
fee be applicable to a licensed real estate agent or broker.
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Motion by Jacobson, Seconded by Knight, to allow a finder's fee of five percent on parcels other
than the restaurant site and on the restaurant site for a good quality restaurant they would offer up
to ten percent. Motion carried unanimously.
Andover Economic Development Authority Meeting
Minutes -July 19, 2005
Page 5
OTHER BUSINESS
Commissioner Orttel wondered if it would be reasonable for the EDA to look at properties they do
not own and offer design ideas for them. Mr. Dickinson stated they could do this but only for their
development district.
Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting
adjourned at 6:50 p.m.
Respectfully submitted,
Susan Osbeck, Recording Secretary
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