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Meeting location: Municipal Center
City of Apple Valley 7100 147th Street West
Apple Valley, Minnesota 55124
JULY 30, 2014
PARKS AND RECREATION ADVISORY COMMITTEE
SPECIAL INFORMAL MEETING TENTATIVE DISCUSSION ITEMS
6:00 p.m.
1. Committee Discussion Items 10 minutes
2. Regent's Point (formally known as Quarry Ponds) 10 minutes
3. Legacy of Apple Valley Sixth Addition/Remington Cove Apartments 10 minutes
4. Parkside Village Gabella 10 minutes
5. Arena Manager Update 5 minutes
6. Park Tour 90 minutes
7. Adjourn
PARKS AND RECREATION ADVISORY COMMITTEE
REGULAR MEETING TENTATIVE AGENDA
7:00 p.m.}
1. Call to Order
2. Approval of the Agenda
3. Audience —10 Minutes Total Time Limit —For Items Ag
4. Approval of the May 2014 Minutes Vi
V
5. Agenda Items
A. 4
6. Adjournlro
s
NEXT REGULARLY SCHEDULED MEETINGS - Tentative:
Thursday September 4, 2014 6:00 p.m. (Informal)
" " 7:00 p.m. (Regular)
Thursday November 6, 2014 6:00 p.m. (Informal)
" 7:00 p.m. (Regular)
Regular meetings are broadcast, live, on Charter Communications Cable Channel 16.
(Agendas and meeting minutes are also available on the City's Internet Web Site
www. cityofapplevalley. org)
•es,
City of Apple
Valley
ITEM:
CITY COUNCIL MEETING DATE:
SECTION:
5.2)
1-6
July 10, 2014
Regular
PROJECT NAME:
REGENT'S POINT Final Plat (formally known as';QUARRY PONDS)
PROJECT DESCRIPTION
REGENT'S POINT is a proposed subdivision that will create 41 single-family lots and
dedicated public street right -of way on approximately 60.5 gross acres. The site is located'
north of 16& Street West (CSAH 46), approximately %s-mile west of Pilot Knob Road (CSAH"
31).
STAFF CONTACT:
DEPARTMENT/DIVISION:
Thomas Lovelace, City Planner
Community Development Department
APPLICANT:
PROJECT NUMBER:
Arcon Land II, LLC and Fischer Sand and PC13-27-ZS
Aggregate, LLP
APPLICATION DATE:
March 25, 2014
Proposed Action
I. Adopt the draft resolution considering the need for an Environmental
Assessment Worksheet (EAW) for the REGENT'S POINT AND QUARRY
PONDS WEST development projects. (The draft resolution wiU be distributed
prior to the City Council meeting)
2. Accept the first reading of the proposed REGENT'S POINT planned
development ordinance, waive the provision for the second reading and pass the
draft ordinance amending Appendix F of the City Code of Ordinances.
3. Adopt draft resolution approving the REGENT'S POINT Planned Development
Agreement, and that the Mayor and City Clerk be authorized to sign the
agreement.
4. Adopt the draft resolution approving the REGENT'S POINT final plat and
development agreement, and that the Mayor and City Clerk be authorized to
sign the necessary document after review and acceptance of the final document
by the City Administrator and City Attorney.
5. Approve the 157tb Street West Restoration Agreement.
6. Adopt draft resolution approving the conveyance of City -owned property to
Fischer Sand and Aggregate, LLP.
Project Summarylissues
Attached for your consideration is a request by Arcon Land II, LLC (the developer) and Fischer
Sand and Aggregate, LLP (the property owner) for approval of a planned development ordinance
that will establish permitted, conditional, and accessory uses; a planned development agreement,
and final plat and development agreement for REGENT'S POINT. This development consists of
41 lots and four (4) outlots. The lots will be used for the construction of 41 single-family
dwellings, with Outlots A and B to be used for storm water ponding and Outlots C and D reserved
for future single-family residential development. Right-of-way will be dedicated for local streets
to serve the individual lots as well as Johnny Cake Ridge Road and 157s' Street West, collector
streets and 160a` Street West, a minor arterial street.
A public hearing on the proposed rezoning and subdivision of the land by preliminary plat was
held by the Planning Commission on June 19 and July 17, 2013, and was recommended for
approval by the Commission at its July 17, 2013, meeting. On January 9, 2014, the City Council
approved the following:
I. An amendment to the 2030 Comprehensive Land Use Map re -designated the property east
of Johnny Cake Ridge Road with the proposed final plat from "MD" (Medium Density
Residential/6-12 units per acre to "LD" (Low Density Residential/2-6 units per acre);
2. rezoning of the _land within the QUARRY PONDS preliminary plat from "SG" (Sand and
Gravel) to "PD" (Planned Development) and directed staff to prepare a planned development
ordinance; and
3. The QUARRY PONDS preliminary plat.
The draft planned development ordinance includes the permitted, conditional, and accessory uses;
and the area requirements and special performance standards for zone 1, which include Blocks 1-4
and Outlots C and D of the final plat. This zone has been established to allow for single-family
dwellings that will be constructed on smaller lots than you would typical see in the "R-3 single-
family residential zoning district. Zone 2 will include Outlots A and B and the only allowed use in
that zone is public storm water ponding area and other essential public service facilities.
The draft development agreement refers to the installation of the municipal improvements
consisting of municipal streets, utilities, a reconstruction and expansion of the existing storm water
pond within the development. It also lays out the cost participation between the City and
developer for construction of Johnny Cake Ridge Road, the 160`s Street West turn lanes, and costs
related to oversizing municipal utilities within and outside of the subdivision's boundary.
Financial guarantees for all of the developer -installed items and landscaping are included in the
agreement as well as other financial obligations and dedication requirements.
The agreement also calls the conveyance of City -owned property that is currently part of the storm
water ponding area to the developer for residential development. This includes approximately .6
acres east of Johnny Cake Ridge Road that will become part of Lots 1-3, block 4 and .05 acres
west of Johnny Cake Ridge Road, which will be part of Outlot D. The conveyance of this property
will be offset by the dedication of land within Outlots A and B for storm water ponding.
The agreement includes conditions for grading of the expanded storm water pond and public
streets, which includes dates for completion of these grading activities.
Z
Finally, the agreement also calls out the installation of all subdivision monuments and
documentation of additional agreements, which will be included as attachments to the development
agreement. These include the following:
A temporary drainage and utility easement over Outlot C.
A drainage and utility easement over the watermain that will be located in the 157t' Street
right-of-way.
Access restriction easements that will restrict direct driveway access from Johnny Cake
Ridge Road and 157`s Street West to all abutting lots.
Planning Commission Action
A public hearing scheduled for the June 19, 2013, Planning Commission meeting was continued to
the July 17, 2013 meeting. The Planning Commission voted to recommend approval of the rezoning
from "SG" (Sand and Gravel) to "PD" (Planned Development) and the Quarry Ponds preliminary
plat.
Budget Impact
The City will be Earticipating with the developer with the cost of the construction of Johnny Cake
Ridge Road, 157 Street West and the 160a' Street West turn lanes, and costs related to oversizing
municipal utilities within and outside of the subdivision's boundary. The costs are outlined in the
development agreement.
Attachment(s)
Draft Ordinance
Drag Develo ment A ent
Location Ma
Draft Platmed Develo meat A eement Resolution
Draft Restoration AzrBemmt
Draft Final Plat
Draft Planned Develo meat A Bement
Draft Land Conv ce Resolution
EAW Petition
Draft Final Plat Resolution
it Claim Deeds
I B Letter
outlot into 33 single-family lots. This plat is also proposed to be completed in two phases. The City has
placed the same street extension condition on this plat as they did on REGENT'S POINT
Financial Issues: Johnny Cake Ridge Road and 157 ° Street West are classified collector streets in the
City's 2030 Transportation Plan. Collector streets are described as roadways designed to serve shorter trips
within the City, and collect and distribute traffic from neighborhoods and employment centers to the arterial
street system. Both of these streets will be designed and constructed to serve those needs greater than what
is generated by this development. The development agreement includes a section that identifies the City's
and developer's financial responsibilities for the construction of the two collector streets, the CSAH 46 turn
lanes, as well as the public utilities oversizing costs.
Pedestrian Access: Sidewalks, trails or pathways shall be provided in each plat in accordance with
provisions of the City's pedestrian circulation plan. Sidewalks will be required along both sides of local
streets within the development and pathways will be installed on both sides of future Johnny Cake Ridge
Road and 157d' Street West. The Quarry Ponds preliminary plat identified a 13-foot wide area has been in
the southeast comer where a pathway will be installed that will connect with an existing pathway in Quarry
Point Park. That location will be established at the time of the Outlot C replat.
This development is in an area where Dakota County is proposing to construct a section of the North Creek
Greenway. This trail will connect the Vermillion River in Empire Township with the Minnesota Zoo and
Lebanon Hills Regional Park. Different layouts have been discussed over the year, with no decision made
on a location.
City staff met with Dakota County representatives to discuss the trail's alignment as part of this
development proposal. It appears that an understanding has been reached that will take the trail west and
north through Quarry Point Park and will cross 157s' Street West east of the Quarry Ponds development.
This proposed alignment was presented to the Apple Valley Parks and Recreation Advisory Committee and
they voted to recommend the Quarry Point Park alignment as proposed by staff.
Recreation Issues: The Cities subdivision regulations provide for dedication of land or easements for the
purpose of offsetting the need created by new development for new parks or storm water holding ponds.
The regulations also provide for a cash -in -lieu of land dedication and is based on a "benchmark" land
valuation for raw land. The plans do not propose any land dedication,, therefore it will be expected that the
developer will be proposing the cash option to meet their park dedication requirement. The Parks and
Recreation Advisory Committee reviewed the Quarry Ponds development project at their June 10, 2013 and
they recommended the acceptance of a cash dedication with the plat. Approval of the REGENT'S POINT
final plat and development agreement will include the cash -in -lieu of parkland land dedication $187950.00
Environmental Review Request: The Minnesota Environmental Board (EQB) has informed the City that
they have received a petition requesting that an Environmental Assessment Worksheet (EAW) be prepared
for the REGENT'S POINT and QUARRY PONDS WEST developments. The petition cites the following
significant environmental effects as reasons for the need of an EAW:
e Heavy vehicle traffic on residential streets of Regatta and Lakeville.
• Heavy traffic creating unsafe risks for children at play and use on residential streets.
• Higher density housing of Quarry Ponds causing drop in property values, with problems.
• Destruction of the Vermillion River Watershed's home to wildlife in southeast Apple Valley.
• Excessive harmful dust and noise from the gravel mining before, during development.
• Destruction of a 20-year-old, 2,580 feet shoreline of lake adjacent to Fennel Court and 160th St. W.
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7/10/2014
APPROVED
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PROPOSED REGENT'S POINT
FINAL • ,
Quarry Ponds West
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7/10/2014
1. Quarry Ponds Comprehensive Plan amendment public
hearing held by the Planning Commission on April 17,
2013. Planning Commission recommends approval.
2. City Council authorizes submittal of Comprehensive Plan
amendment to Metropolitan Council at their April 25,
2013.
3. Metropolitan Council approves Comprehensive Plan
amendment on June 6, 2013.
'1 : 9 1 ,
1. Quarry Ponds development project reviewed by Parks and
Recreation Advisory Committee at their June 10, 2013, meeting.
The Committee recommended a cash -in -lieu of land dedication.
2. Quarry Ponds preliminary plat and rezoning public hearing was
held by the Planning Commission on July 17, 2013,
3. Discussion of cost participation for Quarry Ponds collector roads
at September 12, 2013, City Council informal meeting.
4. Approval of Comprehensive Plan amendment, rezoning and
preliminary plat for Quarry Ponds at January 9, 2014 City Council
meeting.
S. Quarry Ponds West preliminary plat public hearing held by
Planning Commission on May 7, 2014.
6. Planning Commission recommends approval on May 21, 2014.
7. City Council approves Quarry Ponds West preliminary plat on
June 12, 2014.
in
7/10/2014
REGENT'S POINT
SINGLE FAMILY DEVELOPMENT
1. Adopt the draft resolution considering the need for an
environmental assessment worksheet for the REGENT'S POINT
AND QUARRY PONDS WEST development projects.
2. Accept the first reading of the proposed REGENT'S POINT
planned development ordinance, waive the second reading and
pass the draft planned development ordinance.
3. Adopt draft resolution approving the REGENT'S POINT Planned
Development Agreement.
4. Adopt the draft resolution approving the REGENT'S POINT final
plat and subdivision agreement.
S. Approve the 1ST" Street West Restoration Agreement.
6. Adopt draft resolution approving the conveyance of City -owned
property to Fischer Sand and Aggregate, U.P.
19
4.4
444
City of Apple
Valley
ITEM:
CITY COUNCIL MEETING DATE:
SECTION:
5.0
1 -5
July 10, 2014
Regular
PROJECT NAME:
The Legacy of Apple Valley Sixth Addition/Remington Cove Apartments'
PROJECT DESCRIPTION: '
• Vacation of Drainage and Utility Easements across the following described property now currently
platted as Lot 1, Block 1, The Legacy of Apple Valley Fourth Addition: Lot 1, Block 1, The Legacy
of Apple Valley; Lot 1, Block 1, The Legacy of Apple Valley Second Addition; Lot 1, Block 1, The
Legacy of Apple Valley Fourth Addition; and Utility Easement per Document No. 1611915;
• Development Agreement and Final Plat for The Legacy of Apple Valley Sixth Addition; and
Amended Planned Development Agreement.
STAFF CONTACT:
DEPARTMENT/DIVISION:
Margaret Dykes, Planner
Community Development Department
APPLICANT:
PROJECT NUMBER:
Remington I AV, LLC and Trident
PC14-14-ZSB
Development, LLC
APPLICATION DATE
60 DAYS:
120 DAYS:
June 18, 2014
August 1 i, 2014
October 16, 2014
Proposed Actions
Vacation of Easements:
• Open the public hearing for the vacation of the subject easements, receive public comments,
and close the hearing.
• Adopt Resolution vacating the easements and direct the City Clerk to publish the notice of
completion of vacation in accordance with the attachments.
Development Agreement and Final Plat for The Legacy of Apple Valley Sixth Addition; and
Planned Development Amendment:
• Adopt Resolution Approving The Legacy of Apple Valley Sixth Addition Final Plat and
Development Agreement.
• Approve Amended Planned Development Agreement
• Approve Assignment of Development Agreement
Project Summary/Issues
Vacation of Easements:
Remington 1 AV, LLC, the property owner of the 5.21-acre lot located southeast of the intersection of
Galaxie Avenue and Founders Lane, is requesting the vacation of all existing drainage and utility
easements across the subject lot. A letter from the ownership group's development arm, Trident
Development, LLC is attached. The subject lot has been replatted several times. The property was
originally platted as Lot 1, Block 1, The Legacy of Apple Valley, which was approved by the City in
2002. The property was replatted in 2003 as Lot 1, Block 1, The Legacy of Apple Valley Second
Addition. And the property was replatted again in 2004 as Lot 1, Block 1, The Legacy of Apple
Valley Fourth Addition. When the previous replats of the property were completed, the easements
were not vacated, which lead to a duplication of the easements. It has made the legal description of the
site cumbersome. The property owner wishes to vacate the existing easements and reestablish them as
part of the final plat for The Legacy of Apple Valley Sixth Addition. This will simplify the legal
description of the property. The new easements will have the same dimensions and be in the same
location as the existing easements.
There are City utilities in the easements, but the new easements for The Legacy of Apple Valley Sixth
Addition will adequately cover the infrastructure. Staff has no outstanding issues with the requested
vacation, and no comments expressing concerns related to the vacation have been received.
The Legacy of Apple Valley Sixth Addition —Development Agreement and Final Plat, and
Planned Development Amendment:
Attached is the draft copy of the development agreement and final plat for The Legacy of Apple Valley Sixth
Addition, which has been prepared by the City Attorney's office and reviewed by Remington 1 AV, LLC, the
property owner. The plat, which consists of two (2) -lots, is generally southeast of the intersection of
Galaxie Avenue and Founders Lane. Lot 1 will be 2.66 acres; this lot will be developed in the future.
Lot 2 will be 2.54 acres. A public hearing on the subdivision of the land was held by the Planning
Commission on May 21, 2014, and recommended for approval by the Commission at its meeting on June 4,
2014. The City Council approved the preliminary plat for The Legacy of Apple Valley Sixth Addition at its
meeting on June 12, 2014. The Council also approved site plan review/building permit authorization for
one 101-unit apartment building called the Remington Cove Apartments at that same meeting.
Park dedication will be satisfied by a cash payment in the amount of $262868.00 for Lot 2. This amount
will be collected prior to the release of the final plat for filing at Dakota County. Park dedication for
issuance of the building permit for that lot. An approximately one -acre storm water pond, which was
dedicated to the City as part of The Legacy of Apple Valley Addition, satisfies the pending requirement for the
subject plat.
Also attached is an Amendment to the Planned Development Agreement. The property is zoned "PD-716,
Zone 2". Because this is a Planned Development district, a change to the existing Planned Development
agreement prepared for The Legacy of Apple Valley is needed. This agreement approves the changes to
the original plan and allows the plans for the Remington Cove development to move forward. This is
considered a "housekeeping" issue.
Budget Impact
N/A
Attachment(s)
1. Draft Resolution - Vacation of Easements 4. Xcel Energy comments 7. Development Agreement
2. Location Map 5. Letter from Developer 8. Planned Development Agreement
3. Legal Description of Easements 6. Draft Resolution — Final Plat
and Subdivision Agreement
2
C:\Users\jmurphy\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.WlookVERCKZFP\071014 CCMemo Legacy
Vacation and final plat.docx
DEVELOPMENT AGREEMENT
Between
GALAXIE PARTNERS, LLC -
And
CITY OF APPLE VALLEY
For
THE LEGACY OF APPLE VALLEY SIXTH ADDITION
AGREEMENT
WHEREAS, the City of Apple Valley, a Minnesota municipal corporation, (the
"City"), has been requested by Galaxie Partners, LLC, a Minnesota limited liability
company (the "Developer") to approve for recording the following described subdivision
of land:
The Plat of THE LEGACY OF APPLE VALLEY SIXTH ADDITION
(the "Subdivision"); and
WHEREAS, the Developer intends to develop the Subdivision as two (2) lots; and
WHEREAS, pursuant to City Ordinances, the Planning Commission held a public
hearing with reference to the application for approval of the plat on May 21, 2014; and
WHEREAS, the Planning Commission recommended its approval on June 4,
2014; and
WHEREAS, the. City Council approved the preliminary plat on June 12, 2014;
NOW, THEREFORE, in consideration of the mutual agreements of the parties it.is
hereby agreed by and between the parties as follows:
1. Subject to the terms and conditions of this Agreement, the City hereby
approves for recording the plat known as THE LEGACY OF APPLE VALLEY SIXTH
ADDITION, as shown and noted on Exhibit "A" attached hereto. Upon recording, the
Developer shall submit copies of the recorded Plat and the recorded Development
Agreement to the City for its records.
2. The following Improvements shall be maintained as follows:
A. The City shall only be responsible for maintenance of sanitary sewer lines
having a pipe equal to or greater than eight inches in diameter and located
within public right-of-way or utility easements. Maintenance of service
and lateral Panes shall be in accordance with City Policy 2.03 Water and
Sanitary Sewer Service Maintenance and Repair Policy Adopted July 8,
2010, per Resolution 2010-144.
1
5. The Developer agrees to install all utilities underground in the Subdivision,
specifically including electrical, telephone, cable television and gas services. The
Developer hereby represents that all utility services will be available for a building prior
to occupancy of any dwelling in that respective building.
6. No occupancy of any building in the Subdivision shall occur until water,
sanitary sewer, and a gravel driving surface are available for use to that building.
7. Upon submission of a building permit application(s), the Developer agrees
to pay the City for the public services furnished to the Subdivision, an amount as
determined below upon the basis of units (per building) as determined by the City
Engineer, which amount shall be paid in the following manner:
(i) Sewer Availability Charge - The rate per unit is based on the year in which
the building permit is issued (presently $2,625.00 per unit - $2,325.00
Metro and $300.00 City). The person who applies for a building permit
shall pay, at the time of the issuance of the permit, an amount equal to the
rate times the number of units. This fee is subject to change if the
obligation of the City to the Metropolitan Waste Control Commission
changes.
(ii) Water System, Supply and Storage Charge - The rate per unit is based on
the year in which the building permit is issued (presently $817.00 per unit).
The person who applies for a building permit shall pay, at the time of the
issuance of the permit, an amount equal to the rate times the number of
units.
8. The parties mutually recognize and agree that park dedication requirements
as provided in Chapter 153 of the City Code for Lot 2, Block 1, shall be satisfied in total
and complete satisfaction by a cash payment of $261868.00 notwithstanding any past
agreements for the payment of park dedication fees, including real property that includes
Lot 2, Block 1. The. cash dedication payment is computed in the following manner:
Step 1: Land Dedication
101 Units x 1.7 Residents per Unit x 0.00955 Acres per Resident = 1.64 Acres
Step 2: Gross Cash Dedication
1.64 Acres x $175,000.00 per Acre = $287,000.00
Sim 3: Credit for Previous Park Dedication
49% of $51,290.00 credit for dedication of Ontlot B, The Legacy of Apple Valley,.
attributed to Lot 1, Block 1, The Legacy of Apple Valley Fourth Addition
$25,132.00 credit
Step 4: Net Cash Dedication
$287,000.00;gross cash dedication less $25,132.00 credit = $261,868.00.
Payment must be made to the City prior to the release of the plat for recording.
9. The parties mutually recognize and agree that park dedication requirements
as provided in Chapter 153 of the City Code for Lot i, Block 1, shall be satisfied in total
and complete satisfaction by a cash payment in an amount to be determined at the time of
site plan/building permit authorization for Lot 1, Block 1, based on the number of units,
residents per unit, park dedication requirements per resident and benchmark land
valuations then in effect, notwithstanding any past agreements for the payment of park
dedication fees, including real property that includes Lot 1, Block 1. The cash dedication
requirement shall be offset by a credit equal to 51% of the $51,290.00, credit for
dedication of Outlot B, The Legacy of Apple Valley, attributed to Lot 1, Block 1, The
Legacy of Apple Valley Fourth Addition, which equals $26,158.00. Payment must be
made to the City prior to the release of the building permit for Lot 1, Block 1.
10. The parties mutually recognize and agree that storm water pond dedication
requirements, as provided in Chapter 153 of the City Code, have been satisfied by the
dedication to the City of Outiot B, The Legacy of Apple Valley, according to the
recorded plat thereof, Dakota County, Minnesota.
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000*0
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ITEM: F--3
=N
City of Apple
Valley
COUNCIL MEETING DATE: July 10, 2014
SECTION:
Informal Agenda
ITEM DESCRIPTION:
Parkside Village Update
STAFF CONTACT: DEPARTMENTIDIVISION:
Bruce Nordquist, Community Development Director Community Development Department
Action Requested
Review and discuss Parkside Village. This is an information item and no action is requested as
part of this informal review. Both the City Council and Economic Development Authority will
consider actions related to Parkside Village during the regularly scheduled meetings the evening of
July 10,
Summary
In January 2013, actions were taken by the City Council and economic Development Authority
approving the development of Parkside Village. Since that time, progress has been made:
- A Confession of Judgement with Dakota County has addressed the scheduled payment of
special assessment.
- Final plans have been reviewed for issuance of a building permit.
- Construction and permanent financing has been secured for the project.
The owner, IMH Special Asset NT 175-AVN, LLC and Titan Development I, LLC are requesting
a two phase approach to development starting with the 196-unit Gabella building. A second phase
and the construction of the 126-unit Galante building is planned to follow.
Given the span of time that has occurred, staff is planning to re -introduce the approved project as a
two phase project at the Informal City Council session. The attachments for this review are
included at the City Council Regular Agenda 5D, 1 through 5.
•••
••••
006
City of Apple
Valley
ITEM:
CITY COUNCIL MEETING DATE:
SECTION:
S.D
1-S
July 10, 2014
Regular
PROJECT NAME:
Parkside Village Gabella
PROJECT DESCRIPTION
Request for revised and reauthorized agreements to allow construction of Parkside Village Gabella
multiple family building, consisting of 196 units, north of Kelley Park.
STAFF CONTACT:
DEPARTMENT/DIVISION:
Ron Hedberg, Finance Director
Finance
Bruce Nordquist, AICP, Community Development Dir.
Community Development Department
Kathy Bodmer, AICP, Planner
APPLICANT:
PROJECT NUMBER:
IMH Special Asset NT 175 — AVN, LLC and Titan
PC12-31-ZSBG
Development I, LLC
APPLICATION DATE:
60 DAYS:
120 DAYS:
May 12, 2014
1 July 10, 2014
September 9, 2014
Proposed Action(s)
1. Financial Assistance Items (City Council and EDA Actions):
a. Adopt the Resolution approving the revised Business Subsidy Agreement.
b. Adopt the Resolution approving the revised Development Assistance Agreement.
2. Land Use Items (City Council Only):
a. Approve the amended Planned Development Agreement.
b. Adopt the Resolution Approving the Final Plat of Parkside Village Gabella and Development
Agreement with conditions and authorizing the City Clerk and Mayor to sign all required
documents.
c. Adopt the Resolution Reauthorizing Site Plan/Building Permit Approval to construct the
196-unit Parkside Village Gabella building with conditions as approved January 24, 2013.
Project Summary
The owners of the Parkside Village development, IMH Special Asset NT 175 — AVN, LLC and Titan
Development I, LLC, received approval to construct the Parkside Village development with a total of 322
units January 2013. The project included the 196-unit Gabella building north of Kelley Park and the 126-
unit Galante building along Galaxie Avenue. The owners have been working to secure financing for the
project and have found that lenders do not support financing the construction of 322 units all at once, as
originally proposed and approved. At its May 8, 2014, meeting, the Developer requested and the EDA
supported a reconsideration of the timing and financial structure of the project. Splitting the development
into two phases, with construction of the 196-unit Gabella building in August and construction of the 126-
unit Galante building in the future would achieve the following shared objectives of the City, EDA and
developer:
• The developer requested a fair financial splitting of the projected into two phases based on the
number of units in each building.
• Rather than splitting the assistance in a simple 60/40 split according to the number of units, staff,
legal counsel and Northland Securities revised the distribution of funding to an approximately
50150 split to provide an incentive to complete the second building.
• Construction of the Gabella and Galante buildings will comply with all requirements of the
January 24, 2013, approvals.
• Construction will proceed in a timely manner with construction of the Gabella building north of
Kelley Park expected to begin in August.
Background
The owners of the Parkside Village development, IMH Special Asset NT 175 — AVN, LLC and Titan
Development I, LLC, request splitting the Parkside Village project into two phases, with construction of the
196-unit Gabella building to begin this summer and construction of the Galante building, the 126-unit
building along Galaxie Avenue, to occur in the future. The attached draft agreements are revised to allow
for a two-phase project. No other changes to the project are proposed; the building would be constructed in
accordance with the previously approved zoning amendments, development agreement and building permit
authorization.
Business Subsidy Agreement. The Business Subsidy Agreement is revised so that the business subsidy
will be divided between the two projects. Funds are the amount of money the City has received from
Dakota County for penalty and interest (P&I) on past due special assessments. The subsidy is intended to
increase the City's tax base by increasing the value of the property, create living wage jobs, and enhance the
City's residential business districts. So far, the property owner has paid $1,282,890 of back taxes and
special assessments. As a result, the City has made one reimbursement of P&I in the amount of $122,653.
A second reimbursement of $99,447, for the 2013 payment year, will be released upon execution of these
agreements. When the final plat is filed for the Gabella development parcel, all past due taxes and special
assessments will be paid on the property which is estimated to be $1,090,994.
Development Assistance Agreement. The Development Assistance Agreement is revised so that the TIF
assistance is spread between the two projects. Originally the TIF was set up with an up -front
reimbursement of $1.15M and $5.35M pay -go reimbursement for both buildings. The assistance has been
split as follows:
Originally
Phase I Gabella
Phase II Galante
Approved Project
(196 units)
(126 units)
322 units
TIF Note (Pay -Go)
$5,350,000
$2,684,000
$2,666,000
Up Front Reimbursement
$1,150,000
$576,000
$574,000
Planned Development Agreement. The Planned Development Agreement is revised to allow for two
phases of development. No other changes are made to the previously approved zoning amendments,
conditions, or building and development plans.
Final Plat of Parkside Village Gabella and Development Agreement. The final plat of Parkside Village
Gabella is consistent with the Parkside Village Preliminary Plat, but only the lots associated with the
Gabella building are platted. Four former lots and the vacated portion of right-of-way of Fontana Trail are
platted into a single parcel. In addition, right-of-way is dedicated so that Gabella Street intersects with
Foliage Avenue north of the apartment building. A 30' drainage and utility easement is dedicated along the
east property line abutting Foliage Avenue for the relocation of a 24" storm sewer line.
Site Plan/Building Permit Reauthorization. The approval for the site plan and building permit expired
January 24, 2014, so the petitioners are requesting a reauthorization of the approved plans. No changes to
the previously approved plans are requested. The Gabella building consists of two u-shaped buildings
with a center one-story community area containing a fitness center, internet cafe, club room/party room,
yoga studio and game room. Outside of the community space will be an outdoor swimming pool and
patio/barbeque area. The four-story, 196-unit building, will be located north of Kelley Park across 152ad
Street. Access to the Gabella parcel will be taken from the north from Gabella Street. At 196 units on a
5.2-acre site, the development has a density of 37.7 units/acre.
Previous City Council and Planning Commission Action
At its October 17, 2012, meeting, the Apple Valley Planning Commission voted unanimously to
recommend approval of the project with conditions. Subsequently, the City Council reviewed and
approved the Parkside Village development project with conditions on January 24, 2013. The petitioners
seek a reauthorization of previous approvals which would allow them to begin construction of the
Parkside Village Gabella building north of Kelley Park.
Budget Impact
Overall budget impact remains the same as previously approved; only the timing and allocation of the
TIF resources between the two phases would be adjusted. While a 60/40 split was requested by the
developer, the documents are amended to allow closer to a 50150 split. This will provide the owner with
incentive to complete the second building. Attached is a memo from the City's Finance Director
providing further financial discussion including analysis from Northland Security.
Attachment(s)
1. Location Map
5. Draft Resolution Approving
8. Draft Resolution Approving Final Plat, Development
2. GabeOa Site Plan
Development Assistance Agreement
Agreement, and Associated Documents
3. Gabella Elevation Drawing
6. Draft Resolution Approving Business
9. Draft Resolution Approving Site Plan and Giving
4. Parkside Village Rendering
Subsidy Agreement
Building Permit Authorization
View to West
7. Draft Resolution Approving Planned
Development Agreement
EXHIBIT A-1
DESCRIPTION OF PHASE 1 DEVELOPMENT PROPERTY
Lot 1, Block 2
Lot 2, Block 2
Lot 3, Block 2
Lot 1, Block 3
Parkside Village, Dakota County, Minnesota.
All in the Legacy of Apple Valley North, Dakota County, Minnesota.
A-1-1
632779Ov2
EXHIBIT A-2
DESCRIPTION OF PHASE 2 DEVELOPMENT PROPERTY
Lot 1, Block 7
Lot 1, Block 8
Parkside Village,; Dakota County, Minnesota.
All in the Legacy of Apple Valley North, Dakota County, Minnesota.
A-2-1
632779Ov2
EXHIBIT A TO PHASE 1 ASSESSMENT AGREEMENT
LEGAL DESCRIPTION OF PHASE 1 DEVELOPMENT PROPERTY
Project Name: Gabella';Building
Description: Lot 1, Block 2, Lot 2, Block 2, Lot 3, Block 2 and Lot 1, Block 3
All in Parkside Village, Dakota County, Minnesota
A-1
6327790d1
EXHIBIT A TO PHASE 2 ASSESSMENT AGREEMENT
LEGAL DESCRIPTION OF PHASE 2 DEVELOPMENT PROPERTY
Project Name: Galante Building;
Description: Lot 1, Block 7, and Lot 1, Block 8
.All in Parkside Village, Dakota County, Minnesota
A-1
632779ov2
DEVELOPMENT AGREEMENT
Between
IMH SPECIAL ASSET NT 175-AVN, LLC
And
CITY OF APPLE VALLEY
For
PARKSIDE VILLAGE - GABELLA
authorization to proceed is given by the City and (ii) to exercise any other
remedies available under this Development Agreement or under the Development
Assistance Agreement between the Developer and the City. The exercise of any
remedy shall not preclude the exercise of any other remedies available to the City.
The Developer agrees to hold the City harmless from any damages, causes of
action, or claims related to the construction being stopped by the City.
9. Occupancy. No occupancy of any building in the Plat shall occur until water,
sanitary sewer, and a paved surface are available for use to that building.
10. Service Fees. The applicant shall pay the City for the public services furnished to
each Lot within the Plat, an amount as determined below upon the basis of units (per building) as
determined by the City Engineer, which amount shall be paid in the following manner:
A. Sewer Availability Charge - The rate per unit is based on the year in which the
building permit is issued (presently $2,646.00 per unit - $2,365.00 Metro and
$281.00 City). The person who applies for a building permit shall pay, at the time
of the issuance of the permit, an amount equal to the rate times the number of
units. This fee is subject to change if the obligation of the City to the Metropolitan
Waste Control Commission changes.
B. Water System, Supply and Storage Charge - The rate per unit is based on the year
in which the building permit is issued (presently $766.00 per unit). The person
who applies for a building permit shall pay, at the time of the issuance of the
permit, an amount equal to the rate times the number of units.
11. Park Dedication. The parties mutually recognize and agree that park dedication
requirements for the Plat, as provided in Chapter 153 of the City Code, shall be satisfied by a
cash payment of Two Hundred Nineteen Thousand Eight Hundred Fifteen and'No/100 Dollars
($219,815.00) This amount is due and payable prior to the release of the Plat for recording.
12. Storm Water Dedication. The parties mutually recognize and agree that the
storm water pond dedication requirement, as provided in Chapter 153 of the City Code, has been
satisfied.
13. As -Built Surveys. The Developer must provide the City with as -built site surveys
("Survey") for each building constructed within the Plat, prior to the issuance of the Certificate
7.
5.D
7/10/2014
Approve 2-Phase Project
Apple Valley City Council Meeting
July 10, 2014
Project overview
• Request for revised and reauthorized
agreements to allow construction of
Parkside Village Gabella multiple family
building, consisting of 196 units, north of
Kelley Park.
1
7/10/2014
Gabeila Building
7/10/2014
Galante Building
Gabella Site Plan
rd
7/10/2014
Actions previously taken:
• TIF Housing District #15 created —Jan 2013
• Kelley Park land purchased
• Parkside development agreements originally approved
On May 8, 204 EDA approved consideration of phasing approach
7/10/2014
Phasing Concept
• Phase I - Gabella
• Begin Oct 2014
• Complete Mar 2016
Min Value $21,365,000
# units 196
• Phase II - Galante
• Begin April2017
• Complete Dec 2018
• Min Value $13,830,000
• # Units 126
Phasing Concept - total remains
same
500 i as G6 70% 70% 70% 709
!ay Go?IFp1l�ies7 $2,684000 2,666000 $5,350,000 $5,350,001
sty. wk ^�,r
1 �e $576,000 $574,000 $1,150,000 $1,150,001
9