Loading...
HomeMy WebLinkAboutWK - November 16, 2011OF NDOVE 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY WORKSHOP November 16, 2011 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Available Commercial Property - Retail Market Analysis 3. Bunker and Crosstown Redevelopment Area 4. Parkside at Andover Station 5. Other Business - Review 2011 -2012 EDA Goals - Commissioners Comments, Concerns and Issues 6. Adjournment Lie ND QVE 0 ANDOVER ECONOMIC DEVELOPMENT A UTHORITY WORKSHOP NOVEMBER 16,2011 - MINUTES A Workshop of the Andover Economic Development Authority was called to order by President Mike Gamache, November 16, 2011, 6:05 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila, Tony Howard, Mike Knight, Julie Trude, Joyce Twistol, Bob Nowak Absent: None Also present: Executive Director, Jim Dickinson Community Development Director, Dave Carlberg LMCIT LIABILITY COVERAGE - EDA ji Motion by Trude, Seconded by Knight approving not waiving the monetary limits on tort liability. Motion carried unanimously. AVAILABLE COMMERCIAL PROPERTY — RETAIL MARKET ANALYSIS Mr. Carlberg indicated at the November 8` Planning and Zoning Commission meeting the Commission requested staff to look at the percentage of commercial property in neighboring communities. Mr. Carlberg stated in a typical community 20% of a city's tax base is desired to come from commercial uses. Andover's tax base from commercial use is 8.26 %. Mr. Carlberg stated the percentage is pretty consistent for a city in the metro without a state highway system through it. Mr. Carlberg reviewed the vacant commercial property in the city. He stated the city has 2% of its land zoned commercial. Mr. Carlberg indicated Mr. Don Eveland has purchased 20 acres next to his property on Andover Boulevard and is interested in putting the 20 acres into Agriculture Preserve. The question is would the Council be willing to allow Mr. Eveland to put the 20 acres into Ag Preserve, the 20 acres would add to his current property already in Ag Preserve. Mr. Dickinson indicated the city would have to change the development staging if Ag Preserve is granted on the 20 acres. A master plan of the Rural Reserve area, adjacent to where Mr. Eveland's property is was reviewed. © Andover Economic Development Authority Workshop Minutes November 16, 2011 Page 2 President Gamache suggested talking to Mr. Eveland to make sure he fully understands the guidelines for putting property into Ag Preserve. After discussion the direction from the EDA was for Mr. Eveland to submit his application to put the 20 acres in Ag Preserve and let the normal review process begin. Retail Market Analysis Mr. Carlberg stated in the agenda packet is the proposal prepared by the McComb Group regarding preparing a retail analysis report. The McComb Group would be communicating with the merchants and their customers. The fee for the report is approximately $30,000. The time frame for a report to be completed is about four months. Mr. Carlberg indicated he made several attempts to contact the U of M Extension Office for a proposal and received no returned calls or emails. Commissioner Knight asked where the McComb Group gets their demographics for the report. Mr. Carlberg indicated they have their own model they use. Q Commissioner Bukkila stated she was looking for something more comprehensive. The report is focused on retail, what about manufacturing/industrial businesses. Mr. Carlberg answered he is not aware of a company that does a manufacturing/industrial analysis. Mr. Carlberg indicated he and Mr. Dickinson have been talking to Jeff Meister the owner of Dynamic Sealing Technologies finding out what manufacturers they deal with. He stated he is working on a list of manufacturers he will be contacting regarding information on industrial property available in the city. Commissioner Nowak stated since we may be entering into an agreement with the McComb Group, should the City Attorney look at the agreement. He asked if there is any confidentiality regarding the report. Mr. Carlberg indicated the report is a public document and the results will be placed on the city website. He stated the City Attorney has not looked at the agreement. The EDA consensus was to secure a contract and have the McComb Group begin after January 1, 2012. Mr. Carlberg stated this item will be brought to the December 20` EDA meeting for approval. BUNKER AND CROSSTOWN REDEVELOPMENTAREA Mr. Carlberg stated the City has purchased the 4 -plex located at 2600 138` Avenue NW and has received a couple proposals to have an environmental assessment done. The environmental © assessment must be done in order to demo the structure. Mr. Carlberg indicated since this area may become a TIF District redevelopment area, if the building were to be demoed and the city wanted to re -coop the costs of demolition, the building would need to be declared a sub - standard structure. Andover Economic Development Authority Workshop © Minutes November 16, 2011 Page 3 Mr. Carlberg stated he has contacted a relocation specialist company, SRF. SRF indicated in Minnesota even if the lease is up for tenants living in a rental property the City would still be responsible for relocation benefits and moving costs. The average cost for a SRF specialist to work with a tenant is about $3,000 per unit. Mr. Dickinson indicated the cost to relocate tenants could be about $20,000 per 4 -plex building, it could take 15 -20 years to re -coop those costs. Mr. Carlberg indicated the suggestion from the last EDA meeting was to contact a management company. He contacted Great Lakes Management Company who Anoka County uses for their Senior Housing program. He received no response from the Great Lake Management Company. Mr. Dickinson stated the cheapest way will take a very long time. He said if the EDA wants to see an immediate impact, it is going to be a struggle and expensive. Commissioner Trade asked what area should be focused on. Mr. Dickinson suggested focusing on the properties south of 138' Avenue and north of Bunker Lake Boulevard. © Commissioner Trade asked if there are enough funds in the budget to accomplish their goals. Mr. Dickinson stated there are funds currently available to operate, when more funds are needed that is when a new TIF District is created. Mr. Dickinson indicated if the EDA wants to be more aggressive with this project they will need to be willing to go after the occupied parcels and bring in a relocation specialist. Mr. Dickinson indicated there are TIF projects that have not been committed to; funds committed to those projects could be used to pursue parcels in this area. The EDA consensus is to focus on parcels south of 138` Avenue and north of Bunker Lake Boulevard, contact a real estate agent and be aggressive on purchasing the parcels. PARKSIDE AT ANDOVER STATION Mr. Carlberg reviewed the slides from a PowerPoint presentation providing potential development scenarios for Parkside at Andover Station. Mr. Dickinson stated the existing lots measure 53 feet wide. After talking with developers, lots measuring 60 feet wide is what is needed to provide a larger house with a 3 car garage in the current market. He stated replatting the area a few lots will be lost in order to provide a 60 foot wide lot. Mr. Dickinson reviewed the options for the 8 unit buildings. 0 Andover Economic Development Authority Workshop © Minutes November 16, 2011 Page 4 OTHER BUSINESS REVIEW 2011 -2012 EDA GOALS Mr. Carlberg asked for any comments or questions regarding the EDA goals that were adopted in February 2011. Commissioner Nowak asked for an update on Kottkes. Mr. Carlberg indicated Kottkes is currently marketing two parcels on Bunker Lake Boulevard. The two parcels are included on the City website for sale. Mr. Dickinson stated Kottkes may be willing to relocate. Mr. Dickinson indicated ABC Mini Storage is for sale. Mr. Dickinson reviewed the Pov's property. The City is assisting with marketing the site. There is a business interested in purchasing part of the parcel (noted as Pov's #1 on the handout). He wanted to know if the EDA would be interested in purchasing parcel Pov's #2 of the property. © The parcel was discussed. The EDA requested staff continue discussions with Brad Povlitzki, owner of Pov's. Commissioner Knight asked about the Serendipity property. Mr. Carlberg stated the daycare is still interested in the property and they are working on the outdoor playground issues. Commissioner Trude indicated the $25,000 from United Properties to use around the Andover Station ponds is still in the bank. The area was discussed regarding what the funds could be used for. President Gamache stated most of the goals were accomplished for 2011. Motion by Bukkila, Seconded by Howard, to adjourn. Motion carried unanimously. The meeting adjourned at 8:45 p.m. Respectfully submitted, chelle Hartrding Secretary x