The Andover Economic Development Authority (EDA) is looking to buy the Stop-N-Shop gas station property as part of an ongoing effort to assemble properties on the north side of Bunker Lake Boulevard and east of Crosstown Drive and redevelop them.
City Administrator Jim Dickinson said the city and the site owner, which is Mardot Properties LLC, have reached a tentative agreement of $430,000.
The main building tenant has been the gas station. However, the building is large enough for other tenants, which have included a tanning salon, a Youth First Community of Promise neighborhood center and warehouse storage for the Time to Thrift business.
Dickinson told the EDA Nov. 7 that Mardot Properties is negotiating with tenants on lease terminations. The city’s goal is to officially close on the property acquisition by Dec. 31.
The property has a remaining special assessment of approximately $5,000 due to the Crosstown Drive reconstruction project that occurred last year and the property owner must pay the full amount at closing, Dickinson said. There are no delinquent property taxes.
On the other hand, Dickinson said the city will cover the costs of building demolition and removing the three underground gas storage tanks.
Mardot Properties informed the EDA that there was a fuel leak on the property in the 1990, but the Minnesota Pollution Control Agency wrote an Oct. 27, 1999 letter that did not find any contamination beyond what was previously found and that the contamination was at a level that no further action was needed.
The property owner must allow the EDA to fully inspect the property prior to the sale being finalized, according to the terms of the agreement. Due to this previous soil contamination, Dickinson said the EDA must have an action plan to clean up the site in case the site becomes a residential development.
With this property in place, the city would have a small swath of land extending northwest between this gas station property to 138th Avenue. The EDA bought a vacant four-plex at 2600 138th Ave. N.W. on Oct. 18, 2011 for $174,900. A city park lies between these two properties, but Dickinson said that this is not an official dedicated park, so this site could legally be redeveloped for commercial use.
“It is a good solid core for us,” Dickinson said of the three properties.
According to Dickinson, the EDA should not start marketing this area until it has even more properties. The EDA has been focusing on vacant properties and willing sellers, so assembling the sites could take some time.
“Right now it’s buy, clean and hold,” Dickinson told the EDA.
Eric Hagen is at [email protected]