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HomeMy WebLinkAboutEDA - March 6, 2012AI T Y O F NDOVE^ 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING March 6, 2012 6:00 p.m. Conference Rooms A & B 1 Call to Order — 6:00 p.m. 2. Approval of Minutes (February 6, 2012 Regular; February 6, 2012 Closed) 3. Bunker /Crosstown Redevelopment Area 4. EDA Project Progress Review 5. Parkside at Andover Station Update 6. Arbor Oak/Trident Development Update — Recommend Creation of TIF District 7. Other Business 8. Adjournment UC I T Y 0 F^ NDOVE 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: Economic Development Authority CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: March 6, 2012 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: February 6, 2012 Regular February 6, 2012 Closed DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Harmer Deputy City Clerk Attach: Minutes 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 ANDOVER ECONOMIC DEVELOPMENT AUTHORITYMEETING FEBRUARY 6, 2012 -MINUTES A Meeting of the Andover Economic Development Aul Gamache, February 6, 2012, 6:00 p.m., at the Andover Andover, Minnesota. Present: Absent: Also present: APPROVAL OF January 3, 2012, MOTION Commissioners Julie Trade Commissioners , Jim Public called to order by President Mike 1685 Crosstown Boulevard NW, Tony Howard, Mike Knight, and Robert , David Dave Berkowitz the Minutes as presented. Motion carried OF ANDOVER SENIOR PROJECT — TRIDENT Mr. Carlberg introduced Roger Fink from Trident Development, LLC. He indicated Mr. Fink would be making a presentation on a proposed senior housing project located on the southwest corner of Hanson Boulevard and 155`" Lane in the Grey Oaks Development. Mr. Fink explained the team is made up of three companies, Trident Development LLC a real estate developer, Lyon Contracting Inc. a general contracting firm and Tealwood Care Center Inc. a management company. The objective of this team is to develop, construct and manage the facility long term. Mr. Fink indicated the project concept for Andover is a three story, 70 unit building. The building will house residents from approximately 70 —100 years old. There will be three types of housing: independent living, assisted living and enhanced services often referred to as memory support care. Mr. Fink stated this facility would create approximately 30 — 35 new jobs. A Marketing Director would be hired six months before the facility is open. They would like to Andover Economic Development Authority Meeting Minutes — February 6, 2012 Page 2 start construction in July of 2012; the construction will take about a year, opening the facility in August of 2013. Mr. Fink stated the total development budget is approximately 9.9 million. Mr. Fink explained the market demand for senior housing in Anoka County. Commissioner Trade stated her concern is that Andover is a young community. She believes the parents of the city's residents are the ones that will be interested in the facility. President Gamache asked how this facility compares to the Farmstead. Mr. Dickinson indicated the Farmstead is 144 units. 10 11 Commissioner Howard asked if using TIF funds brings down the cost to the facility residents. 12 Mr. Fink explained TIF funds close the financing gap. The lending environment has changed in 13 the recent years. Mr. Fink stated with a large project such as this one some costs do not qualify 14 for financing. He explained the project costs are stacked up as follows: 73% financing, 19% 15 private investors and 8% TIF funds. 16 17 Mr. Fink indicated they would be applying for Housing TIF Funds, which creates affordable 18 housing units. He stated the Housing TIF District will establish at least 20% of the rental units as 19 affordable housing. 20 21 Commissioner Howard asked if when the TIF District drops off will the rent rates increase. Mr. 22 Fink stated they are asking for a 25 year TIF District. Mr. Dickinson indicated after the TIF 23 District ends it will depend on how the market is regarding facility rates. 24 25 President Gamache stated from the City's stand point once the TIF District ends the City has no 26 input since the City has been paid back. 27 28 Commissioner Trude indicated her concern with a rent increase when the TIF District ends. Mr. 29 Fink stated he believes it is highly unlikely the rent would increase a significant amount. 30 31 Commissioner Trade asked who is going to be the long term owner of the facility. Mr. Fink 32 indicated Trident, Tealwood and private investors will form a company called Arbour Oaks LLC 33 and they will own the facility. 34 35 Commissioner Howard commented that he would like to see more cultured stone on the building, 36 an all enclosed dumpster area and the number of parking spaces in the back of the building 37 reduced. Mr. Fink stated on the latest concept plan the parking in the back has been reduced. 38 Commissioner Howard stated his concern regarding the noise from the air conditioner units 39 placed in each apartment. 40 41 Commissioner Bukkila asked what the ups and downs are for the City regarding this facility. Mr. 42 Dickinson indicated there is a market demand for this type of facility and by using a TIF District 43 it will provide affordable housing for seniors. He stated this evening's presentation is to provide 44 a feel for the developer and direction from the EDA in regard to moving forward with this Andover Economic Development Authority Meeting Minutes — February 6, 2012 Page 3 1 project. Mr. Dickinson indicated a positive for the City is that the project will create jobs. 2 Commissioner Knight asked if there are a maximum number of TIF districts a city can have. Mr. 3 Dickinson answered Andover is at the very low end of having TIF districts. 4 5 Commissioner Bukkila asked if 25 years is a long time for a TIF district. Mr. Dickinson stated 6 25 years is a long time. Mark Ruff from Elhers and Associates indicated a 25 year TIF district is 7 not common; however it is locking in long term affordability. 8 9 Mr. Fink stated they will hold a neighborhood informational meeting to hear concerns and 10 questions from the residents. 11 12 The EDA feels the concept is very good and encouraged Mr. Fink to move forward. 13 14 The EDA thanked Mr. Fink for the presentation. 15 16 EDA ACTIVITY— PROJECT STATUS REPORT 17 18 Mr. Carlberg updated on the following: 19 20 2012 Special EDA Events — Staff has scheduled the concerts in the park series for this summer. 21 Oak View Middle School Jazz Band on May 30'', Erin Rogue on June 27`", Bellows and Brass on 22 July 24ffi, and the Andover High School Band on August 22 "d 23 24 OTHER BUSINESS 25 26 Mr. Carlberg reminded the EDA, February 14th is the Chamber luncheon at the Harvest Grill in 27 Coon Rapids and February 15`h is the kick off for the McCombs Group market analysis study at 28 5:30 p.m. in the Council Chambers. 29 30 EDA recessed at 6:58 p.m. to go to the City Council meeting. 31 32 The EDA returned from the City Council meeting and recessed to an EDA Closed Session to 33 discuss Parkside at Andover Station proposals at 8:10 p.m. 34 35 The EDA reconvened from the Closed Session at 8:40 p.m. 36 37 ADJOURNMENT 38 39 Motion by Bukkila, Seconded by Howard, to adjourn. Motion carried unanimously. The meeting 40 adjourned at 8:40 p.m. 41 42 Respectfully submitted, 43 44 Michelle Hartner, Recording Secretary ACI T Y NDOVE • a y 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: President and Commissioners✓ Jim Dickinson, Executive Director FROM: David L. Carlberg, Community Development Director SUBJECT: Bunker and Crosstown Redevelopment Area DATE: March 6, 2012 INTRODUCTION The EDA is requested to receive an update from staff on the redevelopment of the Bunker Lake Boulevard/Crosstown area. DISCUSSION All environmental work has been completed on the four -plex purchased at 2600 138`" Avenue NW. Staff will be soliciting bids for abatement of environmental issues as well as soliciting bids for demolition. The City made application to Anoka County for $200,000 in Community Development Block Grant (CDBG) funds for 2012 to purchase and demolish an additional four -plex in the area. The City was not successful in receiving funding this year. Staff continues to monitor the area for potential purchase /acquisition opportunities. ACTION REQUESTED The EDA is requested to continue discussions on the redevelopment of this area. Respectfully submitted, David L. Carlberg +r ' T -:Z,� 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US. TO: EDA President and Board Jim Dickinson, Executive Director FROM: David L. Carlberg, Community Development Director SUBJECT: EDA Activity - Project Status Report DATE: March 6, 2012 INTRODUCTION This memo provides a brief update of all EDA activities. Further details will be provided at the meeting. DISCUSSION 2012 Special EDA Events — "Concert in the Park" - Staff has scheduled the "Concert in the Park" series for this summer. The schedule includes the Oak View Middle School Jazz Band on May 30th, Erin Rogue on June 27th, Bellows and Brass on July 24th and the Andover High School Band on August 22nd. Staff will be drafting contracts with each entity outlining responsibilities and cancellation policy due to inclement weather. 2012 Business Appreciation Day — The date has been set for Wednesday, June 13, 2012 at "The Refuge ". Andover Station Area Medians — No update until spring 2012. Andover Station North — Available sites are actively being marketed. www.MetroMSP.ora and City Website — Staff continues to monitor the EDA's land sales information on the MetroMSP website sponsored by Anoka County. We have also shown information on other commercial and industrial lands that are for sale in Andover on both the www.metromsp.org and in the past on the city planning department's website. Staff has updated the city's website to include and economic development department to provide prospective businesses easier access to available commercial /industrial properties as most parties interested look for an economic development section of a city's website if they are inquiring about available properties/buildings. Potential Restaurants — Staff continues to submit demographic information to potential restaurants as leads become available. There continues to be two issues facing Andover in attracting sit down restaurants. The first is not enough daytime traffic and the second being not enough square footage of retail space to support a restaurant. Redevelopment Sites —Staff is monitoring the area for potential acquisitions as they become available. Community Development Block Grant Funds (CDBG) funds will be used to install municipal water service in the area of 1401h Lane NW. The $200,000 application for 2012 funding for CDBG is not being recommended for approval from-the project funding committee. Parkside at Andover Station Negotiations — Closing on the sales center unit occurred on February 15, 2012. Staff is working with Capstone Homes, Inc. on a purchase agreement and takedown schedule for the single family lots. Retail Market Analysis The kick -off meeting for the Retail Market Analysis occurred on Wednesday, February 15, 2012 at 5:30 p.m. in the Council Chambers. Eight businesses were represented at the meeting. Staff has solicited other businesses to participate in the phone interview with Linda Oie of the McComb Group and also to conduct the customer survey at their establishments. ACTION REQUESTED Receive a presentation from staff and provide direction. Respectfully submitted, David L. Carlberg PA A LD6 06 AVYE � IF 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN.US TO: President and Commissioners Jim Dickinson, Executive Directo FROM: David L. Carlberg, Community Development Director SUBJECT: Parkside at Andover Station Update DATE: March 6, 2012 INTRODUCTION The EDA is requested to receive an update from the Community Development Director on recent developments at the Parkside at Andover Station. DISCUSSION Sale of 1801 139th Avenue NW (Sales Center) The closing occurred on February 15, 2012. Development of Remaining Property Acquired from Bruggeman The EDA discussed the proposals received to develop the single family parcels at the February 6, 2012 meeting. Staff is currently working on a purchase agreement with Capstone Homes, Inc. Recent discussions including the takedown of the property, grading of the property, platting and related development costs. ACTION REQUESTED Receive presentation and provide input if necessary. Respectfully submitted, David L. Carlberg 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN. US TO: President and Commissioners Jim Dickinson, Executive Director FROM: David L. Carlberg, Community Development Director SUBJECT: Arbor Oaks — Trident Development Update (Order Public Hearing) DATE: March 6, 2012 INTRODUCTION The EDA is requested to receive an update from the Community Development Director on the status of the project. The EDA is also requested to recommend the City Council Call for a Public Hearing for the Proposed Adoption of the Modification to the Development Program for Development District No. 1, and the Proposed Establishment of Tax Increment Financing District No. 1 -5 and the Proposed Adoption of a Tax Increment Financing Plan. DISCUSSION The EDA at the February 6, 2012 meeting provided positive feedback to Trident Development, LLC on a proposed senior housing project to be known as the Arbor Oaks of Andover. The 70 unit project is being proposed to be developed with a subsidy from the city in the form of a Tax Increment Financing (TIF) housing district. Under this pay as you go program, the taxes would be rebated back to the project and would be used to reduce the rental rates to create affordability. Trident Development has scheduled a neighborhood meeting for Tuesday, March 6, 2012 at 6:00 p.m. at the Grey Oaks Community Room, 15550 Linnet Street NW. Attached is the invitation letter from Trident Development. ACTION REQUESTED The EDA is requested to approve the attached resolution recommending the City Council Call for a Public Hearing for the Proposed Adoption of the Modification to the Development Program for Development District No. 1, and the Proposed Establishment of Tax Increment Financing District No. 1 -5 and the Proposed Adoption of a Tax Increment Financing Plan. Respectfully submitted, �- -'e 67- - David L. Carlberg T R" ENT Development, LLC. 3601 18th Street South • Suite #103 • St. Cloud, MN 56301 Phone: 320.258.4438 • Fax: 320.252.3603 February 17, 2012 Re: Neighborhood Informational Meeting Proposed Arbor Oaks Senior Living Community Dear Future Neighbor, You are cordially invited to a neighborhood informational meeting to learn more about the proposed The Arbor Oaks Senior Living Community. The meeting will be held at the Grey Oaks Community Room, 15550 Linnet Street NW, on Tuesday evening, March 6, 2012 starting at 6:00 PM. Information will be presented by a representative of the owner /developer of project and should conclude no later than 7:00 PM.. Refreshments will be served. 7 Ho a to see you there. Roger DLYink Sr. Vice President Trident Development, LLC ANDOVER ECOMONIC DEVELPOMENT AUTHORITY CITY OF ANDOVER COUNTY OF ANOKA STATE OF MINNESOTA RESOLUTION NO. RESOLUTION REQUESTING THAT THE CITY COUNCIL OF THE CITY OF ANDOVER CALL FOR A PUBLIC HEARING ON A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1 -5. WHEREAS, the City Council (the "Council ") of the City of Andover, Minnesota (the "City ") established Development District No. 1 pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the Andover Economic Development Authority (the "EDA ") is proposing a Modification to the Development Program for Development District No. 1 and the establishment of Tax Increment Financing District No. 1 -5, all pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 through 469.1799 and Sections 469.090 to 469.1082, inclusive, as amended; and NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners (the "Board ") of the EDA as follows: The EDA hereby requests that the Council call for a public hearing on May 1, 2012, to consider the proposed adoption of a Modification to the Development Program for Development District No. 1 (the "Program Modification ") and the proposed adoption of a Tax Increment Financing Plan (the "TIF Plan") for Tax Increment Financing District No. 1 -5, (the Program Modification and the TIF Plan are referred to collectively herein as the "Plans ") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Plans to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Plans are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Plans to the Council for its approval. 4. The HRA directs the Executive Director to transmit the Plans to the county and the school districts in which the Tax Increment Financing District No. 1 -5 is located not later than March 30, 2012. 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Plans and related documents and to undertake other actions necessary to bring the Plans before the Council. Approved by the Board on March 6, 2012. Chair ATTEST: Secretary SCHEDULE OF EVENTS ANDOVER ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF ANDOVER ANOKA COUNTY, MINNESOTA FOR THE PROPOSED MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1 -5 (a housing district) March 5, 2012 Project information (property identification numbers and legal descriptions, detailed project description, maps, but /for statement, and list of sources and uses of funds) for drafting necessary documentation sent to Ehlers & Associates. March 6, 2012 EDA requests that the City Council call for a public hearing. March 6, 2012 City Council calls for public hearing on the proposed Modification to the Development Program for Development District No. 1 and the proposed establishment of Tax Increment Financing District 1 -5. March 15, 2012* Letter and maps submitted to the County Board for review of county road impacts. [Ehlers & Associates faxed & mailed on March IS, 2012] *The County Board, by law, has 45 days to review the TIF Plan to determine if any county roads will be impacted by the development. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. March 19, 2012 Ehlers & Associates confirms with the City whether building permits have been issued on the property to be included in TIF District No. 1 -5. March 20, 2012 Letter received by County Commissioner giving notice of potential redevelopment tax increment financing district (at least 30 prior to publication of public hearing notice). [Ehlers & Associates faxed & mailed on March 20, 2012] March 30, 2012 Fiscal/economic implications received by School Board Clerk and County Auditor (at least 30 days prior to public hearing). [Ehlers & Associates faxed & mailed on March 30, 2012] April 2, 2012 Ehlers & Associates conducts internal review of Program Modification and TIF Plan. EHLERS i e asoc v,�ss i SCHEDULE OF EVENTS - PAGE 2 ANDOVER ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF ANDOVER ANOKA COUNTY, MINNESOTA FOR THE PROPOSED MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1 -5 (a housing district) April 10, 2012 Planning Commission reviews Program Modification and TIF Plan. April 20, 2012 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [Anoka County Union publication deadline, April 12, 2012 —City of Andover to submit notice and map to newspaper - Ehlers & Associates provided language for the notice to the City on April 5, 20121 May 1, 2012 EDA considers the Program Modification and TIF Plan. May 1, 2012 City Council continues public hearing at 7:00 P.M. on a Modification to the Development Program for Development District No. 1 and the establishment of Tax Increment Financing District No. 1 -5, and passes resolution approving the Program Modification and TIF Plan. [Ehlers & Associates emailed Council packet information to the City on April 24, 2012] City Council passes resolution for Interfund Loan in connect with TIF District No. 1 -5. 12012 Ehlers & Associates files Program Modification and TIF Plan with the MN Department of Revenue, requests certification of the TIF District with Anoka County. 0 EHLERS See you at the... Beyond the Yellow Ribbon Kickoff Hosted by the cities of Andover, Anoka, Champlin, Coon Rapids and Ramsey Thursday, March 29, 2012 @ 6:30 p.m. Green Haven Golf & Banquet Center 2800 Greenhaven Road, Anoka 55303 The cities of Andover, Anoka, Champlin, Coon Rapids and Ramsey are beginning the process of becoming Yellow Ribbon Cities to show our support of military families in our community. Please join us in our Kickoff event. We need support from all key areas of the community, to include: • Educators • Elected officials • Employers • Faith -based organizations • Veterans and civic organizations • Public safety /judicial • Medical and social services organizations • Volunteers from the community For more information on the program please visit www.BeyondTh eYellowRibbon. orE Beyond the Yellow Ribbon Beyond the Yellow Ribbon is a comprehensive program that creates awareness for the purpose of connecting Servicemembers and their families with community support, training, services and resources. It's neighbors supporting neighbors. Together we can become a Yellow Ribbon Community Beyond the Yellow Ribbon is united to bring Servicemembers all the way home.