HomeMy WebLinkAboutEDA - April 3, 2012C I T Y O F
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1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
April 3, 2012
6:00 p.m.
Conference Rooms A & B
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (March 6, 2012)
3. Parkside at Andover Station Update
4. Arbor Oaks - Trident Development Update
5. EDA Project Progress Review
6. Other Business
7. Adjournment
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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: April 3, 2012
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
March 6, 2012 Regular
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
Michelle Hartner
Deputy City Clerk
Attach: Minutes
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V
ANDOVER ECONOMIC DEVELOPMENT A UTHORITY MEETING
MARCH 6, 2012 - MINUTES
A Meeting of the Andover Economic Development Au
Julie Trude, March 6, 2012, 6:01 p.m., at the Andover
Andover, Minnesota.
Present:
Absent:
Also present:
APPROVAL OF
February 6, 2012,
February
Motion by T
unanimously
Commissioners
Mike Knight, R
6:05 pm)
, Jim
as
called to order by Vice President
1 685 Crosstown Boulevard NW,
[a (arrived 6:06 pm), Tony Howard,
and President Mike Gamache (arrived
, David
the Minutes as presented. Motion carried
Closed Meeting: Correct as presented.
approval of the Minutes as presented. Motion carried
BUNKERICROSSTOWN REDEVELOPMENT AREA
Mr. Carlberg indicated staff will be soliciting bids for abatement of environmental issues and
demolition for the four -plex located at 2600 138t` Avenue. He stated the Anoka County Sheriff's
Office and the Andover Fire Department are interested in using the building for training exercises
before it is demolished.
Commissioner Trude stated the neighbors should be notified when the building will be
demolished and if it is used for any training exercises. She suggested putting a sign by the curb
with the information when available.
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Andover Economic Development Authority Meeting
Minutes — March 6, 2012
Page 2
Mr. Carlberg explained the City applied for County CDBG funds to purchase another four -plex
in the area, but were unsuccessful in the grant award process this year.
EDA PROJECT STATUS REPORT
Mr. Carlberg updated on the following:
Retail Market Analysis: Linda Oie from the McCombs Group has conducted 10 interviews with
Andover businesses. The struggle seems to be getting the businesses to conduct customer
surveys. Part of the struggle is the business's corporate office does not allow for the customer
surveys to be done at their establishment. This issue could push the analysis out a couple weeks.
Ms. Oie will continue to try and get more responses from customers.
Concert Events. The schedule is complete and staff is working on contracts for each event.
PARKSIDE AT ANDOVER STATION UPDATE
Mr. Carlberg stated closing took place February 15, 2012 for the property at 1801 139` Avenue.
He indicated staff is working on a purchase agreement with Capstone Homes Inc. regarding the
single family property.
Mr. Dickinson indicated part of the negotiating is the grading on the west side. He recommended
starting in that area which would create about 27 lots.
Commissioner Trude suggested starting on Linnet Street and move back. Mr. Dickinson
indicated the City would be looking at very large redevelopment costs. He explained it is about
the lot sizing, the infrastructure is all set up for eight - plexs.
Mr. Dickinson reminded the EDA being the developer, money is going to have to be spent for
platting, grading, etc before lot sales can occur.
ARBOR OAKS /TRIDENT DEVELOPMENT UPDATE — RECOMMEND CREATION OF
TIF DISTRICT
Mr. Carlberg stated Trident Development is holding a neighborhood meeting at Grey Oaks
tonight.
Mr. Carlberg reviewed the schedule of events calendar regarding the proposed modification to
the development program for Development District No. 1 and creation of TIF District 1 -5.
Mr. Dickiinon indicated Trident Development submitted an escrow and application materials for
a business subsidy. Ehlers and Associates are reviewing the application. The banks listed in the
application have been reviewed. Trident has done TIF deals in other communities. Trident is
projecting a total market value of 9.6 million with 7.4 million construction costs. Mr. Dickinson
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Andover Economic Development Authority Meeting
Minutes —March 6, 2012
Page 3
stated along with the EDA, Grey Oaks Inc. has requested more upgrades to the fagade of the
building.
Mr. Dickinson stated Trident is asking for a 25 year TIF District with an $800,000 subsidy. He
indicated when reviewing the application what is looked at is what is a reasonable rate of return
for an investor, the rule of thumb-is for an investor to get at least a 10% return on investment.
Based on what Trident submitted a rate of return of 10% can be attained just after 10 years. Mr
Dickinson recommended putting a "look- back" clause in the development contract.
Commissioner Bukkila stated she is not comfortable with a 25 year TIF District. President
Gamache stated that is a long time.
Mr. Dickinson indicated Ehlers feels that 10 years is warranted but could be persuaded to support
15 years.
President Gamache stated Ehlers is suggesting 10 -15 years. Mr. Dickinson believes the City can
get 15 years. He reviewed the benefit of a shorter district.
Commissioner Trude suggested having an agreement on the valuation for property tax purposes.
Mr. Dickinson indicated a valuation agreement can be in the developer contract so they can not
contest the value.
Motion by Trude, Seconded by Howard to approve the 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. Motion carried unanimously.
OTHER BUSINESS
Mr. Carlberg stated Advanced Eyecare of Andover, 1574 154th Avenue is hosting an open house
March 15f' from 4:00 p.m. — 8:00 p.m.
Anoka County Community Development will be hosting an open house at 14524 Bluebird Street
on March 2e from 1:00 p.m. — 4:00 p.m.
There will be a Beyond the Yellow Ribbon kickoff meeting on March 29"' at 6:30 p.m. at Green
Haven Golf and Banquet Center. A representative from the program will be at the March 20''
City Council meeting to give a presentation.
ADJOURNMENT
Motion by Knight, Seconded by Bukkila to adjourn. Motion carried unanimously. The meeting
adjourned at 6:51 p.m.
Andover Economic Development Authority Meeting
Minutes — March 6, 2012
Page 4
Respectfully submitted,
Michelle Hartner, Recording Secretary
A,0 6, YA
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: Parkside at Andover Station Update
DATE: April 3, 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
Development of Remaining Property Acquired from Bruggeman
Staff has been working through the Purchase Agreement with Capstone Homes,
Inc. for the take down of thirty -five (35) single family residential lots. A public
hearing is being scheduled for an April 17`" EDA meeting to have the EDA
consider the purchase agreement and the sale of the land to Capstone Homes.
ACTION REQUESTED
Receive presentation and provide input if necessary.
Respectfully submitted,
David L. Carlberg
9 °7'� Ir
(S)
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 + (763) 755 -5100
FAX (763) 755 -8923 • WW *.CLANDOVER.MIN.US
TO: President and Commissioners
Jim Dickinson, Executive Directo
FROM: David L. Carlberg, Community Development Director
SUBJECT: Arbor Oaks — Trident Development Update
DATE: April 3, 2012
INTRODUCTION
The EDA is requested to receive an update from staff on the status of the project.
DISCUSSION
Staff has been meeting with representatives from Trident Development on the
preliminary site design. Staff is also working with Ehlers to prepare the documents
necessary for the creation of TIF District 1 -5, a Housing District. Attached is a schedule
of events for EDA consideration and discussion. Staff will provide an additional update
on the financial aspects of the project at the meeting.
Trident Development held a neighborhood meeting on Tuesday, March 6, 2012 at 6:00
p.m. at the Grey Oaks Community Room, 15550 Linnet Street NW. Comments from
those in attendance were favorable.
ACTION REQUESTED
Receive presentation from staff and provide feedback where necessary.
Respectfully submitted,
David L. Carlberg
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 15, 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.
I* I EHLERS
6 .SSOCI.tE4 1 C
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, 2012]
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 Interfand 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.
1 FREERS
N OVE:
D
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 Deve o ent Director
SUBJECT: EDA Activity - Project Status Report
DATE: April 3, 2012
0
This memo provides a brief update of all EDA activities. Further details will be provided at the meeting.
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 18th (previously the 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 ".
Prizes and gifts are currently being solicited.
Andover Station Area Medians — No update until spring 2012.
Andover Station North — Available sites are actively being marketed.
www.MetroMSP.org 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 propertiesibuildings.
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 140th Lane NW this year. The $200,000 application for 2012 funding for CDBG was not
approved.
Parkside at Andover Station Negotiations — Staff is working with Capstone Homes, Inc. on a purchase
agreement and takedown schedule for the single family lots. Staff is also actively pursuing the development
of the remaining multi - family property as well.
Retail Market Analysis
The phone interviews of business owners /managers and the customer spotting survey are complete. The
McComb Group is currently drafting the analysis.
ACTION REQUESTED
Receive a presentation from staff and provide direction.
Respectfully submitted,
David L. Carlberg
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