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Home My WebLink AboutEDA March 21, 2006 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING March 21, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (3/8/06 Regular Mtg.) 3. Purchase Agreement Review 4. Verbal Update on Economic Development Activities 5. Other Business 6. Adjourn 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US ECONOMIC DEVELOPMENT AUTHORITY MEETING March 21, 2006 6:00 p.m. Conference Rooms A & B AGENDA 1. Call to Order - 6:00 p.m. 2. Approval of Minutes (3/8/06 Regular Mtg.) 3. Purchase Agreement Review 4. Verbal Update on Economic Development Activities 5. Other Business 6. Adjourn @ 1685 CROSSTOWN BOULEVARD N.W. . ANDOVER, MINNESOTA 55304. (763) 755-5100 FAX (763) 755-8923. WWW.CI.ANDOVER.MN.US CC: Jim Dickinson, Executive Director TO: Economic Development Authori FROM: Vicki V olk, City Clerk SUBJECT: Approval of Minutes DATE: March 21, 2006 INTRODUCTION The following minutes were provided by TimeSaver Secretarial Service for approval by the EDA: February 21,2006 Regular Meeting DISCUSSION Attached are copies ofthe minutes for your review. ACTION REOUlRED The EDA is requested to approve the above minutes. Respectfully submitted, I {- :1 ~LL' u/b Vicki V olk City Clerk ANDOVER ECONOMIC DEVELOPMENT AUTHORITY MEETING FEBRUARY 21, 2006 - MINUTES A Meeting of the Andover Economic Development Authority was called to order by President Mike Gamache, February 21,20061 6:00 p.m., at the Andover City Hall, 1685 Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Don Jacobson, Mike Knight, Julie Trude; Voting resident member Joyce Twistol Commissioner Orttel, Voting resident member Robert Nowak and Edward Schultz (Advisor to the EDA) Community Development Director, Will Neumeister Others Absent: Also present: APPROVAL OF MINUTES February 7, 2006: Correct as written. MOTION by Trude, Seconded by Knight, approval of the Minutes as written. Motion carried unanimously. REVIEW LETTER OF INTENT (JOHN LARKIN & JOE RUHLAND) The EDA is asked to review the newest "Letter of Intent" for purchase and development of a site in Andover Station North. The subject site is located at the Northwest comer of Hanson and 139th Avenue. The "Letter of Intent" indicates that they would like to purchase the site and develop a practice and training facility for sports teams (baseball, football, soccer, lacrosse) and sports enthusiasts to receive individualized training. They also may develop a sports medicine and physical therapy area in the building as well as offices, meetings rooms and lecture rooms for larger presentations. Commissioner Trude wondered if the City has counter-offered to Play Ventures, because if they have, they need to get a denial from Play Ventures before they can accept another Letter of Intent. Mr. Neumeister stated they had not. Mr. John Larkin made a presentation to the Commission. He stated they are working in conjunction with MVP Baseball Academy and would like to call their facility the "Andover Center for Excellence" because they will not specialize in one sport. Andover Economic Development Authority Meeting Minutes - February 21, 2006 Page 2 He noted they will have the training available for anyone who would like to use it. The people who use MVP Baseball Academy also have other programs available. He stated there are a lot of restrictions on the property and they need to adjust the business to these restrictions. He indicated they are still working with the design of how to build the facility to meet the restrictions of the site. Mr. Larkin stated they are looking at Summit Structures, steel structures with a membrane for one of their facilities. He stated this will be a supplemental part of the facility and there will be other buildings. Another idea would be to do a steel and brick structure, which would cost more. He stated they may be able to put this structure within a portion of the restricted area because of the way they are built. Commissioner Jacobson wondered if this structure will be a requirement of this letter of intent. Mr. Larkin stated it would not. Mr. Neumeister stated this project is in the concept mode because Mr. Larkin has not had a lot of time to bring this together. Commissioner Jacobson asked because of the close proximity to the ball fields, will they want use of ball fields for part of their program. Mr. Larkin stated he would go through the proper channels to get use of the ball fields. Commissioner Trude thought because this property is close to the ball fields and the Summit structure was not the only building, she would not have a problem with this. Commissioner Jacobson wondered what the timeframe is for this. Mr. Larkin stated they could put the package together along with the business proposal within two months if the Commission agreed to the letter of intent. Commissioner Trude thought this focused on their community and interested the people in the City. She also thought this would fit on the site and could bring additional businesses and customers to the area President Gamache wondered how large Mr. Larkin would want the structure to be. Mr. Larkin stated they are looking at a 150 x 200 feet structure. Commissioner Jacobson stated he would not have a problem looking further into this but he was not as agreeable to the structure. Mr. Larkin indicated Summit Structures can make the building to any City requirements. Commissioner Jacobson thought Mr. Larkin needs to look at the site and see what could be placed on it. Andover Economic Development Authority Meeting Minutes-February 21, 2006 Page 3 Mr. Larkin indicated the primary building will be the block building and the Summit Structures will be installed if they have room. Commissioner Jacobson thought it was worth looking at this further to see what could be done. Mr. Neumeister stated it did not mention that Mr. Larkin would be operating his security business in there. Mr. Larkin stated they would be doing this elsewhere because he wants to just focus on the sports aspect of the business at this site. The Commission liked what they saw and would like to see this move forward for more information to come back for further review and discussion. It was noted a cross easement agreement for the road along with a parking agreement on the EDA property next to this would need to be looked at. VERBAL UPDATE ON ECONOMIC DEVELOPMENT ACTIVITIES Mr. Neumeister updated the EDA on activities happening in Andover Station North. Mr. Neumeister stated someone asked him about a place to put a Perfect 10 Car Wash in Andover Station North or other areas in the City. Commissioner Knight wondered if the ball fields will be full size. Mr. Larkin indicated there will be a couple full size ball fields and one small ball field. OTHER BUSINESS .Mr. Neumeister noted Anoka County Partners will be asking Andover for some money to be a part of this partnership. Motion by Jacobson, Seconded by Knight, to adjourn. Motion carried unanimously. The meeting adjourned at 6:51 p.m. Respectfully submitted, Susan Osbeck, Recording Secretary @ 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 Cc: Jim Dickinson, Executive Director FROM: DevelopmentMA.-- SUBJECT: Purchase Agreement Review DATE: March 21, 2006 INTRODUCTION Mr. Casey has asked to modify the purchase agreement for purchase of Lot 2, Block 3, Andover Station North. The reason he would like to change it is that one of the potential buyers he had lined up for the multi-tenant building decided not to pursue the venture. Mr. Casey would still like to proceed with purchasing enough land to build a 24,000 square foot light industrial building. The original proposal was to build 31,000 square feet with three different businesses occupying the building Mr. Casey has indicated that he would not need as much property as was originally planned for Lot 2, and he would like to move the lot line between Lot 2 and 3 approximately 35 west of where it is currently located (see attached drawing showing the proposed change). Each parcel would be equal in size and Mr. Casey feels that this will allow him to build the same size building on the second site and not incur additional architectural fees. He would still like to obtain an option of the site to the east of Lot 2. DISCUSSION Staffhas the following comments on the proposed request to modify the original purchase agreement. First, there has been more than one year since the original purchase agreement was written and the price of the land involved should be adjusted upward by $0.20 per square foot to account for the time that has elapsed since the original agreement was negotiated. The site area and lot lines can be adjusted to suit Mr. Casey, but there are costs associated with adjusting the lot line and removing the easements that currently exist and replacing them with new ones. Those are costs to the EDA that result from this request. Secondly, the "Right of First Refusal" document should be amended to require that if Mr. Casey wants the option on the property to the east (as originally conceived) the cost per square foot should also be increased to be $0.20 per square foot higher at this time and an escalator of 6% built in to the price if it is taken down one year from now. The EDA should also require a $10,000 non-refundable down payment. This is due to the fact that the property is in effect taken off the market for a one-year period oftime, and the EDA needs some assurance that Mr. Casey will purchase the second site. Comparison Size of Lot and Pricing Proposal (Lot Size) Area in Sq. Feet Price Per Sq. Foot Total Price of Lot Currently Platted - Lot 2 (290' x 353') 102,370 $2.60 $266,162 New Proposal- Portion of Lot 2 (290' x 318') 92,220 $2.80 $258,216 ACTION REOUESTED The EDA is asked to review and comment on the requested changes to the purchase agreement. Please direct staff as to the direction the EDA would like to pursue. Respectfully submitted, LvL Will Neumeister Attachments Purchase Agreement (current) Drawing A (showing existing configuration) Drawing B (showing modified site plan and lot configuration) Cc: Michael Casey, 4135 Coon Rapids Blvd., Minneapolis, MN 55433 ~2- r / DMW'N~ "'A"(6<i~, LAf(!i'-il1fft'd~ l ,-------- ..... '" <l; ~o >-.; ~ . S . Z I I I I I 1 I I'" "' 10 I;;; I I 1 I 1 I , I 0,<5 I I 1 ::;1 ;;1 "', 1 I I I 589"44"16"E 1 - --:----------------3S3_J----- --~------- ----- - - - _ _ _ _ _ _ _ I . . ----------------- -------------------------- . r 283.39 --1 " I 1 :~~ I I~'l- I I c:i ,'l- I I~~ L Ll6ff1TNP&'SJ7<Iltt- I ~~ ~ 3 ~I """~ ~I VJ SrTf5 "', 3 l I I I 636.48 -1 W6-H-r :LNJ:A.J5"[l<IAL- Sr!t 1 , - - I ~' i I 1 i~ 116,000 1 ,.F. I I' 3\000 I' ,.F. I' ", " I BUILD NG .' 5890Z7'50"E 319.42 ~ 588.18'.31 "E ~ ~ [58818'Z9"E! ,~.... ~l ~f ~ .~~ EXCEPTION i~N. 2'b ~;t. <0 ~~ easo 6=88.77''''0' 5~'-:.- :;; C) Deed=l>=88033'19" VV, (fJ C::l g Ct) R=30o 00 CrJ( L=46. 371N8818'29'W! ~ N88'18'.31 "w - 284.07 -_{ [er Lake Boulevard ~---- S ." BUNKER'" treet and Ulllity Easem"en :. ~ ! ,LAKE B.aU!:EVARD (CaU! ", l:: 168 f-- LIJ LIJ lL f-- (/) J C. I I ' ,.. <( ) 68~ --15"FW" l.AN-e -3- PAAWlN~;;.8'!.Pt'Of"SeJ UTc;,"'~ytdi,,,,.. ...._,....."":><""..'~"'..., ..".~~-...m....,"'_.._ ;'-, '~~~j=~~,:~r:-- / .-! . 3: . Z I - -~ I' ~ - _._~-~=-~.~~----~~-~-~.=--=-~ I . I ~; I <::): I c:ii I~. I "'i' I- I I I I I I I ~ '" N to) ------~--------~:-~ ---------; l'J '"' ..... ..., ti tl '- <:> '- <> ~ .~ .... . "'"' '" I I J I t, 1" me !"~ :t~ o~ z I I I , {:. N .,'1 II 4 I I ( ~ .... "" <D <( ~ 68") g 19.42 588.,8'.3, "E ~?i!::: IS881 8'29"EI ~?i!::: ~l~ !~f .~ ~ EXCEPTION ;;,.... . ~b ~~. C::l~ eas. L1=88"33'20' 5:.....l C::l Deed=6=88'33'19" (IJ C::l V) R=30.00 Vir L=46.3~88'18'29'Wl .-: N88.,8'.31"W 284.07 _{ ~ '" ~ ""Junker Lake Boulevard ~"'------Sfree/ and U/Z./ ~ I() U Y c:.osemen -:!E'1(N t.-ANe - ....... ! BUNKER, LAKE B,OU!,EVARD (CQ.U! _ '1_ PURCHASE AGREEMENT 1. PARTIES. This Purchase Agreement is made on , 2005, by and between Andover Economic Development Authority, a body corporate and politic, 1685 Crosstown Boulevard NW , Andover, Minnesota, Seller and Michael S. Casey, an individual, of 14168 Orchid Street, Andover, Minnesota 55304, Buyer. 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property legally described as follows: See Exhibit A attached hereto. After execution of this Agreement by the parties, Sellers shall cause the Property to be surveyed and the legal description in said survey shall be attached hereto. 3. PURCHASE OF LOT WITH BUILDING OR VACANT LOT. (Check paragraph that pertains.) A. Buyer is purchasing the lot with an existing building. x B. Buyer is purchasing a vacant lot. 4. PRICE AND TERMS. The price for the real and property included in this sale: Two Hundred Six Thousand Three Hundred Eight and no/100 Dollars ($256,308.00) which Buyer shall pay as follows: Earnest money of Ten Thousand and no/100 Dollars ($10,000.00) by check, receipt of which is hereby acknowledged, and Two Hundred Forty Six Thousand Three Hundred Eight and no/100 Dollars ($246,308.00) cash on or before ,2005 DATE OF CLOSING. The purchase price is based on a site estimated to be 98,580 square feet with a price of $2.60 per square foot. After the survey is completed of the property by the EDA as required in paragraph 8 herein and the actual square footage of the site is known, the price shall be adjusted to reflect the change in land area based upon the square foot price set out in this paragraph. 5. CONTINGENCIES. Buyer's obligations under this Purchase Agreement are contingent upon the following: (a) Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied with the environmental and soil conditions of the Property. (b) Buyer shall have obtained all zoning, land use, signage, watershed, environmental and other governmental approvals and permits Buyer shall deem 1 -fi'- necessary to use the Property in the manner contemplated by Buyer, including, without limitation, a full building permit for a building conforming to Seller's design standards which Buyer determines can be built for a price acceptable to Buyer, in Buyer's sole discretion. (c) Buyer shall have determined that the roads, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes. In the event any of the above contingencies have not been satisfied or waived by Buyer on or before the date of closing, this Agreement shall be voidable at the option of the Buyer. If any of the foregoing contingencies have not been satisfied by the date of closing, Buyer may postpone the date of closing up to 60 days to permit more time for such contingencies to be satisfied, 6. DEEDIMARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Restrictions relating to use or improvement of the property without effective forfeiture provisions; C. Reservation of any mineral rights by the State of Minnesota; D. Utility and drainage easements which do not interfere with existing improvements. E. Declaration of Covenants filed by the Andover Economic Development Authority. 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual DATE OF CLOSING. SELLER SHALL PAY on DATE OF CLOSING all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing except any installments associated with the construction of 13Sth Avenue and Ibis Street which shall be the responsibility of the Buyer. SELLER SHALL PAY on DATE OF CLOSING all other special assessments levied as of the date of this Agreement except any installments associated with the construction of 13Sth Avenue and Ibis Street which shall be the responsibility of the Buyer. 2 -{- BUYER SHALL PAY real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 8. SELLER'S OBLIGATIONS. (a) Seller warrants that there has been no labor or material furnished to the property in the past 120 days for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property. These warranties shall survive the delivery of the warranty deed. (b) SELLER shall provide a survey of the property reflecting boundary lines, topographic indications, subdivision, easements, restrictions and other matters customarily reflected in a plat of real property. (c) SELLER warrants that there shall be two direct non-exclusive accesses to public streets to the property. (d) SELLER shall cause all offsite utilities, storm drainage, street lights and paving to be constructed, if not already completed, necessary to serve the subdivision at its expense. Such obligation shall not include the sanitary sewer and water area connection charges. Said charges shall be the responsibility of the Buyer. (e) SELLER shall provide site rough grading on the property. (f) SELLER shall provide and pay for a Phase I environmental assessment for subject property for the benefit of and with reliance letters addressed to the Buyer and Buyer's lenders. 9. BUYER'S OBLIGATIONS. (a) BUYER will provide a preliminary site plan on or before March 22, 2005 for approval of the Seller. (b) BUYER will provide a final site plan on or before May 15, 2005. (c) BUYER shall construct a building upon the property which is in substantial conformance to the building identified in attached Exhibit B. Buyer's obligation shall survive the closing on this transaction. 10. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulation. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 3 -'7- 11. POSSESSION. Seller shall deliver possession of the property not later than DATE OF CLOSING. All interest, fuel oil, liquid petroleum gas, and all charges for city water, city sewer, electricity and natural gas shall be prorated between the parties as of the date of change of possession. 12. EXAMINATION OF TITLE. Seller shall, within a reasonable time after acceptance of this Agreement, furnish an Abstract of Title, or a Registered Property Abstract, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens. Buyer shall be allowed 30 business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 13. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention of make title marketable within the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable, Buyer may declare this Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, anyone or more of the following: (1) Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages 4 -1"- under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; (2) Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer; (3) Damages from Seller including costs and reasonable attorney's fees, as permitted by law; (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; (2) Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: (1) Seek damages from Seller including costs and reasonable attorneys' fees; (2) Seek specific performance within six months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 14. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 5 -'1- 15. MINNESOTA lAW. This contract shall be governed by the laws of the State of Minnesota. 16. WEll AND FUEL TANK DISCLOSURE. Seller certifies that the Seller does not know of any fuel tanks or wells on the described real property. 17. INDIVIDUAL SEWAGE TREATMENT SYSTEM DISCLOSURE. Seller certifies that there is no individual sewage treatment system on or serving the property. 18. PAYMENT OF CLOSING COSTS. Each party will pay closing costs which are normally allocated of Buyers and Sellers in a real estate transaction. 19. RIGHT OF FIRST REFUSAL. The Seller and Buyer agree that at the closing, the property contained herein, they will enter into a Right of First Refusal Agreement attached hereto attached hereto as Exhibit C. 20, RESTRICTIVE COVENANT. Seller and Buyer agree that at the time of the closing, they will execute a restrictive covenant to be recorded against the property described herein and in the Right of First Refusal which requires the Buyer, its successors and assigns to construct a "vapor barrier" under any building that is constructed upon the property being constructed on Lots 2 and 3, Block 3, Andover Station North. Said restrictive covenant shall also include a provision that prevents any new wells from being bored or drilled on any of the properties described in this paragraph. 21. PARK DEDICATION. Buyer agrees, at the closing, to pay a park dedication fee to the City of Andover in an amount of 10% of the purchase price listed in paragraph 4 herein. Said amount shall be in addition to the price paid for the land in paragraph 4. 22. CROSS EASEMENT. Buyer shall provide to Seller at the closing a signed cross easement prepared at Buyer's expense providing for driveway access rights between Lots 1, 2, 3, Block 3, Andover Station North, Anoka County, Minnesota. Such cross easement shall be in a form approved by Seller. The Andover Economic Development Authority agrees to sell the property for the price and terms and conditions set forth above. I agree to purchase the property for the price and terms and conditions set forth above. SELLER: BUYER: ANDOVER ECOMONIC DEVELOPMENT MICHAEL S. CASEY 6 -/,,~