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HomeMy WebLinkAbout02/26/15 EDA Meeting Meeting Location: Municipal Center 7100 147th Street West City of Apple Valley, Minnesota 55124 NOTICE: The Apple Valley Economic Development Authority will hold a special meeting at the Municipal Center, on Thursday, February 26, 2015, at 7:00 p.m. to consider the items listed in the following agenda: FEBRUARY 26, 2015 ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING TENTATIVE AGENDA 7:00 p.m. (immediately following the City Council meeting) 1. Call to Order. 2. Approval of Agenda. 3. Approval of Minutes of January 22, 2015. 4. Approval of Consent Agenda Items*: *A. Planned Uponor Manufacturing Expansion at 14800 Everest Avenue: *1. Authorize Staff to Prepare an Economic Development District TIF Plan, Program and Agreements. *2. Set a Public Hearing to Consider an Economic Development TIF District at a Special Meeting of the EDA, 7:00 p.m. on April 9, 2015, Immediately following the City Council Meeting. *B. Set Public Hearing to Consider a Business Subsidy in Support of Planned Uponor Manufacturing Expansion at 14800 Everest Avenue, for April 9, 2015, at 7:00 p.m., Immediately following the City Council Meeting. 5. Regular Agenda Items: A. Authorize Staff to Distribute Request For Proposal (RFP) for Development of Central Village West Office Site. 6. Other 7. Staff Updates. 8. Adjourn. * Items marked with an asterisk (*) are considered routine and will be enacted with a single motion, without discussion, unless a commissioner or citizen requests the item separately considered in its normal sequence on the agenda (Agendas are also available on the City’s Internet Web Site http://www.cityofapplevalley.org) LCONOM1C DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota January 22, 2015 MOTION: ABSENT: Grendahl APPROVAL OF AGENDA APPROVAL OF MINUTES CONSENT AGENDA 2015 BOARD OFFICERS County, Minnesota, held January 22, 2015, at 6:00 p.m., at Apple Valley Municipal Center. PRESENT: Commissioners Goodwin, Bergman, Hamann-Roland, Hooppaw, Melander and Mauuire. Meeting was called to order at 6:00 p.m. by President Goodwin. Commissioner Bergman arrived at 6:01 p.m. MOTION: of Hooppaw, seconded by Maguire, approving the minutes of the special meeting of October 9, 2014, as written. Ayes - 5 - Nays — 0. Abstain — 1 — Melander. Minutes of the special meeting of the Economic Development Authority of Apple Valley. Dakota City staff members present were: Executive Director Tom Lawell, City Attorney Michael Dougherty, Community Development Director Bruce Nordquist, Finance Director Ron Hedberg. Planner Margaret Dykes and Department Assistant Joan Murphy. MOTION: of Hamann-Roland, seconded by Hooppaw, approving the agenda. Ayes - 5 - Nays - 0. MOTION: of Hamann-Roland, seconded by Melander, approving the Joint Powers Agreement with Dakota County CDA and various participating communities to participate in the "Open to Business" program. Ayes - 6 - Nays — 0. 1-1 qmqnn_Roland , seconded b Melander adopting Resolution Nn EDA --• 01 authorizing submittal of an application to the Dakota County Community Development Agency for a Redevelopment Incentive Grant. Ayes - 6 - Nays — O. MOTION: of Hamann-Roland, seconded by Melander, approving Quit Claim Deed related to Ground Lease with ISD 196 for the financing of the stadiums at the high schools. Ayes 6 - Nays — 0. MOTION: of Hamann-Roland, seconded by Bergman, adopting Resolution No. EDA 2015-02 appointing 2015 officers of the Economic Development Authority as President — Economic Development Authority City of Apple Valley Dakota County, Minnesota January 22, 2015 Page 2 Goodwin, Vice-President — Melander, Secretary — Gackstetter, Treasurer — Hooppaw, and Assistant Treasurer — Gackstetter. Ayes - 6 - Nays - 0. 2015 MEETING CALENDAR MOTION: of Hooppaw, seconded by Hamann-Roland, approving the dates on the 20 1 5 calendar and the first meeting of 2016. Ayes - - Nays — 0. 2015 BUDGET FOR THE ECONOMIC DEVELOPMENT OPERATIONS FUND Finance Director Ron Hedberg provided an overview of the 2015 budget, approved by the City Council, which included the Economic Development Operations Fund. Discussion followed. MOTION: of Hamann-Roland, seconded by Hooppaw, approving Resolution No. EDA 2015- 03 for the 2015 Economic Development Authority Budget. Ayes - 6 - Nays - O. 6. Other. NONE 7. Staff Updates. ADJOURNMENT MOTION: of Hooppaw, seconded by Bergman, to adjourn. Ayes - 6 - Nays - O. The meeting was adjourned at 6:14 p.m. Respectfully Submitted, J0/ Departmen' Assista Approved by the Apple Valley Economic Development Authority on 000 0 06*0 000* *** 4, City of Apple Valley TEM DESCRIPTION: Formation of an Economic Development Tax Increment Finance (TIF) District at Uponor Manufacturing Expansion site, 14800 Everest Avenue. STAFF CONTACT: Bruce Nordquist, Community Development Director Action Requested 1. Authorize staff to prepare an Economic Development District TIF Plan, Program and Agreements. 2. Set a public hearing to consider an Economic Development TIF District at a Special Meeting of the EDA, 7:00 p.m. on April 9, 2015, Immediately following the City Council meeting. Summary Uponor is planning an 88,000 sf expansion at their Apple Valley headquarters location. The Company reports that the capital improvements cost will be $12.3 million with an additional $5.7 million in business equipment to be installed there. The total Uponor investment is $18 million. The Company reports 75 added jobs at headquarters as a result of this expansion. the Company has requested tax increment financing assistance in support of the value added property improvement being made. As is the policy of the City and EDA, the assistance would be provided on a "pay as you go" basis over the nine years of a qualified district rather than by issuance of a revenue bond. The last economic development district created by the City and EDA supported the development of the Mark Hebert Apple Valley Business Campus. Tax increment assistance requires a public hearing to form the district, see attached map for the proposed district boundaries. Tax increment, by state law, is also considered a business subsidy. Public hearings are being scheduled for April 9, 2015 for the City and EDA to consider business assistance for the planned I Tponor expansion. A spring start and a year end 2015 completion is part of the plan. Budget Impact Staff will prepare the TIF Plan and Program to determine this. Attachment(s) Uponor Expansion Area Map ITEM: EDA MEETING DATE: SECTION: February 26, 2015 Consent Agenda DEPARTMENT/DIVISION: Community Development Department Uponor SITE UPONOR EXPANSION AREA MAP ^ µ 000 0000 00000 000 000• City of Apple Valley Action Requested ITEM: EDA MEETING DATE: SECTION: 4A.1- Amended February 26, 2015 Consent Agenda ITEM DESCRIPTION: Formation of an Economic Development Tax Increment Finance (TIF) District at Uponor Manufacturing Expansion site, 14800 Everest Avenue. STAFF CONTACT: Bruce Nordquist, Community Development Director DEPARTMENT /DIVISION: Community Development Department 1. Authorize staff to prepare an Economic Development District TIF Plan, Program and Agreements. 2. Adopt draft resolution setting a public hearing on April 9, 2015, at 7:00 p.m. to consider a business subsidy for Uponor, Inc. Summary Attached for your consideration is a draft resolution that was prepared by the City's bond counsel for the establishment of a Tax Increment Financing District for the expansion of a manufacturing facility by Uponor, Inc. The resolution was received after the City Council packets were distributed. Uponor is planning an 88,000 sf expansion at their Apple Valley headquarters location. The Company reports that the capital improvements cost will be $12.3 million with an additional $5.7 million in business equipment to be installed there. The total Uponor investment is $18 million The Company reports 75 added jobs at headquarters as a result of this expansion. The Company has requested tax increment financing assistance in the amount of $1,090,643 to support of the value added property improvement being made. As is the policy of the City and EDA, the assistance would be provided on a "pay as you go" basis over the nine years of a qualified district rather than by issuance of a revenue bond. The last economic development district created by the City and EDA supported the development of the Mark Hebert Apple Valley Business Campus. Tax increment assistance, by state law, is considered a business subsidy. Public hearings are being scheduled for April 9, 2015 for the City and EDA to consider business assistance for the planned Uponor expansion. A spring start and a year end 2015 completion is part of the plan. Budget Impact Staff will prepare the TIF Plan and Program to determine this Attachment(s) Draft Resolution (b) APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA -15- HELD: February 26, 2015 RESOLUTION CALLING FOR A PUBLIC HEARING ON THE PROPOSED GRANTING OF BUSINESS SUBSIDY BE IT RESOLVED by the Board of Commissioners (the "Board") of the Apple Valley Economic Development Authority (the "Authority"), as follows: 1. Recitals: (a) Minnesota Statutes, Sections 116J.993 to 116J.995 (the "Business Subsidy Law "), authorizes the Authority, upon satisfaction of certain conditions, to grant a business subsidy; and the Authority fits the definition of "grantor" in the Business Subsidy Law; and (c) It is a legal requirement that the Authority hold a public hearing prior to adoption of a resolution granting a business subsidy. 2. Public Hearing. A public hearing on the proposed grant of a business subsidy in accordance with the Business Subsidy Law will be held at the time and place set forth in the Notice of Hearing attached hereto as Exhibit A and hereby made a part hereof; and 3. Notice of Public Hearing. The Secretary of the Authority is authorized and directed to cause notice of the hearing in substantially the form attached hereto as Exhibit A to be given one publication in a newspaper of general circulation in the City at least 10 days before the hearing. Adopted by the Board of Commissioners of the Apple Valley Economic Development Authority, Minnesota, this 26th day of February, 2015. ATTEST: Pamela J. Gackstetter, Secretary 6955464v1 Tom Goodwin, President The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor: and the following voted against the same: 6955464v1 Whereupon said resolution was declared duly passed and adopted. 2 STATE OF MINNESOTA ) ) ss. COUNTY OF DAKOTA ) I, the undersigned, being the duly qualified and acting City Secretary of the Apple Valley Economic Development Authority, DO HEREBY CERTIFY that the attached resolution is a true and correct copy of an extract of minutes of a meeting of the Board of Commissioners of the Apple Valley Economic Development Authority duly called and held, as such minutes relate to the calling of a public hearing on the proposed granting of a business subsidy. WITNESS my hand as such Secretary of the Apple Valley Economic Development Authority this day of February, 2015. 6955464v1 3 Secretary EXHIBIT A NOTICE OF PUBLIC HEARING ON GRANTING OF A BUSINESS SUBSIDY NOTICE IS HEREBY GIVEN that the Board of Commissioners (the "Board") of the Apple Valley Economic Development Authority, Dakota County, Minnesota, will hold a public hearing on Thursday, April 9, 2015, at approximately 7:00 p.m., at the Apple Valley Municipal Center, in the City of Apple Valley, Minnesota (the "City "), to have the Board consider granting a business subsidy to Uponor, Inc., in connection with the expansion of an existing manufacturing facility located in the City (the "Project "). The summary of the terms of the business subsidy is available for inspection at the office of the Secretary of the Authority, City Hall, during regular business hours. After the public hearing the Board will consider granting the business subsidy. A person with residence in or the owner of taxable property in the granting jurisdiction may file a written complaint with the City if the City fails to comply with Sections 116J.993 to 116J.995, and no action may be filed against the City for the failure to comply unless a written complaint is filed. All interested persons may appear at the hearing and present their views orally or in writing prior to the hearing. 6955464v1 City of Apple Val ey Budget Impact The request $800,000 will come from funds available to the EDA . Attachment(s) None ITEM: EDA MEETING DATE: SECTION: February 26, 2015 Consent PROJECT NAME: Uponor Expansion PROJECT DESCRIPTION: • Deferred loan business assistance. STAFF CONTACT: Margaret Dykes, Planner APPLICANT: City of Apple Valley DEPARTMENT/DIVISION: Community Development Department PROJECT NUMBER: PC 15-07 Action Requested • Set a public hearing for a public business subsidy as a deferred loan business assistance benefitting Uponor, Inc. Project Summary/Issues Uponor Inc. ("Uponor") is a leading international provider of PEX plumbing, indoor climate and infrastructure systems for the residential and commercial building markets in more than 100 countries worldwide. Uponor North America employs nearly 400 people in their Apple Valley North American headquarters, and they are the City's largest private employer. The company is experiencing solid growth, and expects to continue that growth for the near future. To accommodate this growth, Uponor is proposing to expand its operations in Apple Valley with the construction of an 88,000 sq. ft. manufacturing facility to be located at 14800 Everest Ave, a six-acre lot south of the main office and manufacturing building. The subject building is currently approximately 36,000 sq. ft. and was previously occupied by a school transit provider. The subject building is proposed to be expanded and significant costs will be incurred. The expansion and improvements are expected to create at least 75 additional jobs, and $18 million in improvements. To assist with the expansion, Uponor has requested assistance from the State of Minnesota as well as the City. The State has made available up to $1,500,000 through the Minnesota Investment Fund and the Job Creation Fund programs. Uponor has requested $800,000 in assistance from the Apple Valley Economic Development Authority ("EDA"), and the formation of an Economic Development Tax Increment Financing District. The EDA funds will be used to offset costs for expansion of the subject building. The requested EDA assistance is a Business Subsidy, and, as required by State statute, a public hearing must be held. Additional information and analysis of the requested $800,000 will be made by staff and presented at that meeting. City of App e Val ey PROJECT NAME: Central Village West Office Building PROJECT DESCRIPTION: • Request for Proposals for Development of Central Village West Office Building STAFF CONTACT: Margaret Dykes, Planner APPLICANT: City of Apple Valley DEPARTM ENT/DIVISION: Community Development Department PROJECT NUMBER: PC12-03 Action Requested • Authorize the distribution of the draft Request for Proposals for the development of the Central Village West office site. Project Summary/Issues In 2012, the City received $866,000 in LCDA-TOD funds from the Metropolitan Council for site acquisition of the Commons I and II property in order to make lease costs competitive to a large job- producing tenant that needed to locate near the 1 TRO Red Line. That project did not materialize. Given the options to either return the funds to the Metropolitan Council or request the reprogramming of the funds to a different site, staff, with Metropolitan Council staff support, found reprogramming was best. The area that received the reprogrammed grant funds was 5.34 acres of City-owned tax-forfeited property in the Central Village West, generally located northeast of Garrett Avenue and 153r Street W. The site was to be used for a 100,000 sq. ft. office building and structured parking on three existing vacant lots. The project planned for that site also did not occur because the company that was to locate on the site was acquired by another company and expansion plans were halted. Since then, staff has worked with several potential partners to develop the site, but none has been able to execute a plan. The City was to expend the grant by April 30, 2015. However, the Metropolitan Council has agreed to extend the grant by six (6) months to allow the City to find a qualified developer for the site, and execute a development agreement that provides information regarding project funding, and start and end dates. If the City can complete this step by October 30, 2015, the Metropolitan Council may consider extending the grant to April 30, 2017. As a reminder, the grant funds can only be used for projects located within specific transit areas; the Central Village West area is located in the Apple Valley Transit Station (AVTS) Transit Improvement Area. Staff has drafted a Request for Proposals that would be distributed to qualified developers and brokers to develop the site, if the EDA concurs. The draft RFP requires proposals to be submitted to the City by April 3, 2015, with a final decision to be made by the EDA and the City Council by the end of July 2015. Budget Impact None identified at this time. Attachment(s) 1. Draft RFP 2. Site Aerial ITEM: EDA MEETING DATE: SECTION: February 26, 2015 Regular I. Background APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY 7100 147 Street West Apple Valley, MN 55124 ATTN: Community Development Department 952-953-2575 commdev@ci.apple-valley.mn.us REQUEST FOR PROPOSALS (RFP) FOR THE DEVELOPMENT OF THE CENT A L VILLAGE WEST OFFICE SITE • Pro •osals Due: Aril 3 2015 b 12:00 P.M. Central The Apple Valley Economic Development Authority ("AVEDA") is seeking proposals from qualified developers (individuals or firms) interested in constructing and owning an office building or mixed-use office/retail building on property currently owned by the City of Apple Valley the "City"). The 3.7-acre property (the "Site") is generally located northeast of Garrett Avenue and 153 Street West in the Central Village area of Apple Valley's Downtown. The Site is one of the last large development opportunities in the Downtown area. AVEDA is looking for a creative approach to development that accommodates significant office and/or mixed-use development with an office component to occur on the Site as described in the Background that follows. All proposals must allow for significant job creation with a minimum of 350 jobs to be created within 12 months of construction completion. Develo nlent must be completed by June 30, 2017. Page 1 of 5 • Thc 3.7-acre Site includes two abutting, platted parcels: PID 01-81750-034)10 = 1.67 acres (Lot 1, Block 3, Village at Founders Circle) PID 01-81750-03-020 = 2.03 acres (Lot 2, Block 3, Village at Founders Circle) • of parcels are currently vacant. The Site had previously been used for small-scale farming. Prior to farming operations, the Site was adjacent to a small airstrip. • The Site is approximately 1/3-mile from the Apple Valley Transit Station , which provides convenient access for of MVTA local and commuter bus routes, and the METRO Red Line, the region's first Bus Rapid Transit corridor on Cedar Avenue. Apple„ Valley • The Site is owned by the City of Apple Valley. The City acquired the property for $1,246,700, and will convey the property through AVEDA. An $866,000 grant assists the owner/developer team in financing acquisition. • Existing development in the Central Village includes: the Grandstay Hotel and LaGrand Conference Center, Shops on Galaxie, Vivo Kitchen restaurant, RE/Max Real Estate, Legacy Square townhomes (105 units), and the Haralson Apartments (36 units of affordable supportive housing). The Site is also adjacent to Apple Valley's U.S. Post Office branch, L.A. Fitness, Culver's, SuperTarget, Best Buy, and other large national retailers. Development currently under construction includes Remington Cove apartments (101 units), and Parkside Village, which consists of 322 market-rate apartments; 196 units are currently being built. • Ptoposed for construction start yet in 2015 is a mixed-use retail/housing development southeast of the Site. • Parking for the Site must be provided on the property, but a future public parking lot is planned to be available for use by building tenants. • All utilities are available to the site, and all necessary public infrastructure is in place. • The Site will be sold "as-is". II. Required Elements Page 2 of 5 • Interested developers must incorporate an office or vertical mixed-use development that recognizes the value of the Site as a quality Iocal pornt of the downtown and the community. • Interested developers must design a developinent that provides significant on-Site parking facilities to accommodate the needs of the office and any potential mixed-used development. • All proposals must be consistent with the design principles outlined in the City's Central Village Plan and must conform to existing zoning for the property. The Central Village Plan, adopted in 2003, calls for a neo-traditional, urban-style neighborhood for living, shopping and walking inth existing Downtown. The property is currently zoned 'Plarmed Development 73 • Interested developers must demonstrate they have the necessary financial resources to create a unique addition to the heart of the Downtown business district. • Proposals should de scnbe in general terms the anticipated schedule for the project from initial groundbreakmg to full development and occupancy. • Proposals must evidence the developers' familiarity with urban design principals, with emphasis on pedestrian-friendly street edges and landscaping. • Architecturally, care should be taken to ensure that the appearance and design style are compatible with existing community design and style. • The facade and overall structure, or massing, should be articulated with the details and scale of openings along all street-facing structures. III. Content of Pro osals and Deadline In order to be considered for selection, developers must submit a complete response to this RFP. One (1) original and five (5) copies of each proposal along with an electronic copy of the proposal on CD or flash drive either in Microsoft Word or PDF format must be submitted to the City as a complete sealed proposal. Faxed or emailed proposals will not be accepted. Submissions will not be returned. Each proposal submitted in response to this RFP must contain, at a minimum, the following information: 55124 • over page that includes the following: • Developer's name and mailing address. • Developer's current legal status: corpofation pai tnership, sole proprietor, etc., and supporting evidence/documentation. • Contact person's name, title, phone fax number and email address. • Signature of authorized corporate o er for each entity proposing as a partnership or team. • Completed Development Pro-Forma that dcmonstates the feasibility of the proposed project. Page 3 of 5 • Completed plans to include the following: existing conditions, site plan, landscape plan, drainage/grading plan, and building elevations. • Identification of anticipated partners/team that will perfo rrn project duties, including financing, engineering, utility analysis and design, parking analysis, construction, management, etc. • Proposed timeline inciuding identification of any conditions that must be met. Please include the following: time needed to obtain financing, time needed to complete design, and secure permits and approvals; time for all site preparation; the start and completion dates; and time to complete lease-up and/or sellout. Please note: development must be completed by June 30,2017. • Proposals must be sent to Bruce N Community Development Director 1 ..../iLyr of ',Toe Nralle , 7100 147 Street W . Apple Valley, • Proposals Are Due: April 3, 2015 by 12:00 P.M. (Central) Iv. Evaluation Criteria In reviewing potential development concepts, the following criteria are among those that will be considered: • The number of jobs that will be provided by the development. • The extent to which the proposed development is in compliance with the City's Comprehensive Plan and zoning code, and the degree to which it meets the goals stated in the Central Village Plan. • The qualifications and experience, and the financial and organizational capacity of the development team in successfully planning and completing similar development projects on time and within budget. • The degree to which the development proposal requires publicfiancia1 support. f. Preference will be given to those proposals that demonstrate a hrnite nee d f , any, for public financing. V. Review and Selection Process Interested developers must follow the guidelines be ow m preparing and submitting proposals for consideration: • AVEDA will review development proposals received and may select one or more developers whose professional and financial qualifications and Proposal are deemed meritorious. AVEDA will then explore the development proposal through further discussions with the selected developer(s). Upon request, any Developer selected at this stage shall provide any reasonable additional information requested to allow a thorough investigation of the Developers ability to fully complete the proposed development and the business integrity and reliability necessary to assure good faith performance. • In the event AVEDA identifies a proposal that satisfies the requirements, staff will enter into negotiations with the selected developer in order to develop a written purchase agreement for the She and a development agreement with AVEDA for the Site. The agreement may provide for a contingency commitment period to be negotiated to allow developer adequate time to perform necessary due diligence and finalize financial commitments. Any contract negotiated between a developer and City/AVEDA staff shall be subject to the final approval of City Council/AVEDA. • AVEDA reserves the right to reject any or all proposals or parts of proposals, to negotiate modifications of proposals submitted, and to negotiate specific work elements with a proposer into a project of lesser or greater magnitude than described in this RFP or the proposer's reply. Page 4 of 5 VI. Timing A purchase agreement is anticipated to be executed with the selected proposer within six (6) months of selection; construction of the project would be expected to begin within 120 days thereafter. Following is the anticipated timeline: • Submission deadline for proposals: April 3, 2015 • Review/evaluation of proposals: May 15, 2015 • Recommendation to City Council and AVEDA on the selected developer: July 23, 2015 • Final action by City Council and AVEDA on purchase agreement, development contract and other necessary documents: December 22, 2015 VII. Additional Information • The City's Comprehensive Plan and zoning code may be found at www.cityofapplevalley.org • The Central Village Plan may be viewed by contacting Margaret Dykes at the address below. VIII. Questions/ Contact Person Questions concerning thel-fq.F' or g the RF Apple Val!ey. may be directed to the following: Page 5 of 5 Central Village West Office Parcels 1.64 acres 1.67 acres 2.03 acres 3.65 acres 4.8 acres Æ a Apple Valley Transit Station Ü . 00.050.10.20.30.4 Miles CENTRAL VILLAGE WEST OFFICE SITE Plant - Grow - Prosper