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HomeMy WebLinkAboutDecember 20, 2005 5'\NDbVE~ ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING DECEMBER 20, 2005 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, December 20,2005,6:02 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota Present: Commissioners Don Jacobson, Mike Knight, Ken Orttel; Voting resident members Joyce Twistol and Robert Nowak Commissioner Julie Trude, Advisor to the EDA Edward Schultz Executive Director, Jim Dickinson Community Development Director, Will Neumeister Others Absent: Also present: APPROVAL OF MINUTES December 6, 2005: Correct as written. MOTION by Jacobson, Seconded by Knight, approval of the minutes as written. Motion carried unanimously. REVIEW BUNKER LAKE BOULEVARD REDEVELOPMENT OPTIONS Mr. Neumeister stated this was last discussed with the EDA on June 25, 2002. At that time, the focus was on redeveloping the area between Crosstown Drive and Crosstown Boulevard. Mr. Neumeister reviewed the staff report for the Crosstown Boulevard area with the Commission regarding redevelopment options. Mr. Dickinson reviewed how he came up with the numbers for option two. Mr. Dickinson indicated it would take $10.6 million dollars to clean the area out. They would probably be able to sell the land for $3 million and then the project would yield $3.6 million in tax increment over the next twenty-five years. He stated with option three, there would be office condos and townhomes and they would probably be able to sell the land for a little bit more but the tax increment would go down so there would still be close to a $4 million funding gap. Commissioner Jacobson asked in the cost estimate, would they get ninety percent in sales and ten percent condemnation sales. Mr. Dickinson did not think they would get that much condemnation percentage if they would be buying the property at market rate. Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 2 Mr. Dickinson did not think this would be a feasible project. Mr. Nowak wondered what he meant by the gap could be filled by funds from the Andover Station TIF District. How do they fill in the gap and do they have an excess. Mr. Dickinson stated if they do nothing else in the TIF District and all the land sales come through, and they do not take on any other projects, they could take in about $3.5 to $3.6 million dollars. Mr. Dickinson stated they could do a cost share with developers. Commissioner Knight wondered how they would justify that kind of expenditure for private property without loans. Mr. Dickinson stated this is a redevelopment area and they are improving it so it is in the best interest of the residents and would not require a loan. Commissioner Jacobson wondered ifit made more sense to watch the area closely and make sure all the ordinances are carried out to keep the property up to certain standards in order to live in the area. Commissioner Orttel stated that is not the problem, the buildings are all legal but do not look nice. Commissioner Orttel stated if they improve the looks of the buildings, they could get more rent. This has always been a low rental area in the City. He thought the way to do it is to split what can be split and sell them off because owners will take care of their property, unlike renters, Commissioner Orttel stated they are doing something like that in Anoka. President Gamache wondered if the City was helping to clean up the buildings. Commissioner Knight stated they are doing this on Grand Avenue in St. Paul where they are taking buildings and making them into condos and the City is not helping them. Commissioner Orttel thought the unsightly buildings on Bunker Lake Boulevard should be removed. Mr. Nowak did not think anyone really likes the looks of these buildings. Commissioner Orttel stated they cannot walk away from this but he could not see using public money to fund this. He thought a loan or CDBG funds could be used. Mr. Neumeister reviewed the Kottke's Bus area with the Commission. Commissioner Orttel stated other cities have auto malls and Andover does not have anything like that. He wondered ifthis was something they could look at getting to come into Andover. Mr. Neumeister thought this would be a private sector deal and he did not think the City would want to subsidize this. Commissioner Jacobson stated if this is zoned industrial, they might want to rezone it to Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 3 commercial so something undesirable does not come in. He wondered what is allowed in industrial that is not allowed in commercial. Mr, Neumeister indicated there is not much difference. Commissioner Orttel wondered if they have determined what Kottke's needs for acreage. Mr. Neumeister indicated Kottke's said they would need about twenty acres and they have eighteen acres right now. Kottke's is in a central location and does not want to leave unless a really good deal is given from the City. Mr. Neumeister thought this could be a nice area for a Molly Building. Commissioner Orttel thought this would be prime retail space in the future. Commissioner Jacobson wondered if the City should come to Kottke's and ask them to sign a right of first refusal so the City is in the loop. Mr. Dickinson stated they could look at that. Mr. Neumeister stated they need to get access to either Hanson Boulevard or Bunker Lake Boulevard in order to make something work on that land if redeveloped. President Gamache stated once Hanson is widened, they will know how the Spur station is working out. Mr. Nowak stated if there was an access put in now at Hanson to connect to Grouse, development may not happen the way the City wants it to happen. He thought they should just leave it the way it is. Ms. Twistolliked the idea of looking at the zoning on the property. Mr. Neumeister wondered if they wanted to investigate putting an overlay on this that sets the same designs they used at Andover Station so as the area starts to turn over, they have to meet some higher standards other than Commercial or fudustrial Zoning Districts. He stated right now those standards are fairly low where Andover Station standards are higher. He wondered if they should consider looking at that too. President Gamache thought that was a good idea also. President Gamache wondered how that would affect the buildings further back. Mr. Neumeister stated it would affect them only if they were to remodel and then they would have to bring them up to City standards. Mr. Dickinson stated they could look at other areas for redevelopment in the City ifthe Commission wanted that. Commissioner Orttel stated he did not want to walk away from the Bunker/Crosstown redevelopment. He thought there had to be a way to upgrade the area. Mr. Dickinson indicated they do not have City water. Andover Economic Development Authority Meeting Minutes - December 20, 2005 Page 4 Ms. Twistol wondered what it would take to hook these sites up to water. Mr. Dickinson stated they would have to have bad water because they cannot force them to hook up. There was discussion among the Commissioners regarding bringing the buildings up to code and improving the area. Ms. Twistol wondered if it would do any good to do an overlay on this area as well. Mr. Neumeister did not think that would work in this area. He thought it could be somewhat detrimental. Mr. Neumeister stated they could change the land use on this area, making it multi-use. Commissioner Orttel stated they still need to have the City indicate the entire area will flip or else no one will be the first one to redevelop it. Mr. Neumeister stated unless the City is willing to give a grant, the property owners will not want to improve the area. Ms. Twistol wondered if they have a beautification program along Bunker. She thought this may be something they want to look at. Commissioner Knight stated there is more to this than landscaping. He stated there is not any deviation to the buildings and they are starting look old and worn. He thought the buildings themselves need to be upgraded. OTHER BUSINESS Mr. Neumeister updated the Commission on Andover Station North. He stated they received a letter from the MPCA regarding file closure. They are still waiting for a letter from VPIC. He indicated this will give Mr. Casey and Mr. Rudnicki a chance to get going on their projects. Motion by Jacobson, Seconded by Orttel, to adjourn. Motion carried unanimously. The meeting adjourned at 6:57 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary