Two more land sales in place for Andover Station North

The Andover Economic Development Authority has sold two more properties within its Andover Station North Development, leaving just two more commercial lots and two residential lots to sell, according to Community Development Director David Carlberg.

Dynamic Sealing Technologies will be closing on a land sale this July to purchase 7.26 acres from the Andover Economic Development Authority for $962,409.55. File photo by Eric Hagen

Dynamic Sealing Technologies will be closing on a land sale this July to purchase 7.26 acres from the Andover Economic Development Authority for $962,409.55. File photo by Eric Hagen

Andover Station North is on the north side of Bunker Lake Boulevard and west of Hanson Boulevard. It includes a mix of commercial, industrial, residential and park developments with some of the largest being Walmart, Parkside at Andover Station homes and Andover Station North ball fields.

It is also the location of a closed landfill and a power line easement in certain areas on the eastern side, which is why the city accepted $50,000 for Measurement Specialties to purchase 8.05 acres, according to Carlberg. The city closed on this sale Dec. 30.

Dynamic Sealing Technologies, Inc. already has a home in Andover Station North and vacant property to expand on, but it will be buying another 7.26 acres for $962,409.55 in July.

Measurement
Specialties

According to its website, Measurement Specialties is a global designer and manufacturer of sensors and sensor-based systems for equipment manufacturers in the engine and vehicle, medical, military/aerospace, heating/venting/refrigeration, and consumer/business equipment industries.

According to a company statement, chief executive officer Frank Guidone told employees the week of Feb. 3 that the company will close and consolidate its U.S. Temperature operations in Dayton, Ohio, St. Mary’s, Pa. and Ham Lake into a new Greenfield facility that is being built in Andover that will employ 80 people.

Bob Geiselman said the Ham Lake location was in place for eight years, first as RTD Company. Measurement Specialties purchased this location in 2012 and Geiselman has been the site manager in Ham Lake for three years.

Measurement Specialties owned a 15,000 square foot facility in Ham Lake, but also leased another 14,000 square feet next door.

The Andover location that will replace the three closed facilities will be 50,000 square feet, according to Geiselman. Groundbreaking will happen this spring and it could open in December 2014 or January 2015.

Geiselman said the company chose to consolidate its business the Minneapolis-St. Paul market because of its ease of access to markets in Europe and Asia and the U.S. via the Minneapolis-St. Paul International Airport.

Andover was specifically chosen because it offered “an excellent incentive package to companies locating within their economic zone,” Geiselman said.

City Administrator Jim Dickinson said the land would have been worth $502,100 had it not been for the nearby landfill and an overhead power line easement.

The Andover EDA approved a nine-year Tax Increment Financing District for this development as well. Dickinson said the future tax increment generated from this project will help reimburse the city for the land write-down costs.

The proximity of the closed landfill means a methane gas protection system is necessary, according to Carlberg. The city is contributing $20,000 for a 40 mil polyurethane material under the foundation of the building.

The city will also be paying $150,000 for a parking lot that Measurement Specialties would share with the Andover Station North ball fields.

When asked how much Measurement Specialties is contributing to the parking lot and the polyurethane material, Geiselman replied that the company is still in the design phase and do not have any final numbers.

Dynamic Sealing
Technologies

Dynamic Sealing Technologies develops and manufactures rotary unions for a variety of machines including oil drills, cancer treatment devices, wind turbines, concentrated solar power systems, gas turbines for power generators, and a dredging transfer system that vacuums the sea floor to create trenches and channels for ship passageways.

When a second phase expansion opened in January 2012, it went from 36,000 to 86,000 square feet.

Company spokesperson Chris Larson said the company is planning to expand its office space within its first phase building as early as this summer.

Larson said facility blueprints are complete and city approval has been received for a third phase would add another 45,000 square feet to its facility. The aim of this $4 million project that could start construction in the summer of 2015 would be to increase machining operations.

DSTI was thinking ahead to a fourth phase before this third phase started, so it began negotiating with the city last year. The agreement on the 7.26 acres has been reached, but the property transaction will not close until July.

“Phase four expansion is planned to increase manufacturing space by an additional 80,000 to 100,000 square feet,” Larson said. “This new, separate facility would require heavy floors and a heavy bridge crane for large component manufacturing.”

Larson said the conservative estimate for start of fourth phase construction is five years from now.

Eric Hagen is at eric.hagen@ecm-inc.com

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