HomeMy WebLinkAbout03/26/2015 MeetingECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
March 26, 2015
Minutes of the meeting of the Economic Development Authority of Apple Valley, Dakota County,
Minnesota, held March 26, 2015, at 6:00 p.m., at Apple Valley Municipal Center.
PRESENT: Commissioners Bergman, Grendahl, Hamann-Roland, Hooppaw, Maguire and
Melander.
ABSENT: Commissioner Goodwin
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.
Meeting was called to order at 6:00 p.m. by Vice-President Melander.
APPROVAL OF AGENDA
MOTION: of Hamann-Roland, seconded by Hooppaw, approving the agenda. Ayes - 6 - Nays
- 0.
APPROVAL OF MINUTES
MOTION: of Hooppaw, seconded by Bergman, approving the minutes of the meeting of
February 26, 2015, as written. Ayes - 6 - Nays — 0.
CONSENT AGENDA
MOTION: of Hamann-Roland, seconded by Bergman, approving dedication of Drainage and
Utility easement over portions of Outlot C, Valley Business Park. Ayes - 6 - Nays
0.
MOTION: of Hamann-Roland, seconded by Bergman, authorizing staff to prepare agreements
between the Apple Valley EDA and OneTwoOne Development, LLC for the
Village Pointe Plaza mixed-use development (Lot 1 Plock 1 \Tillage at Founders
Circle). Ayes - 6 - Nays — 0.
TRANSFER OF OWNERSHIP OF SPOWD DEVELOPMENT TO AVBC, LLC
Finance Director Ron Hedberg stated that in June 2012, the EDA entered into a development
agreement with Spowd Developments, LLC for the development of the Apple Valley Business
Campus located in TIF District No.14 along the newly constructed 147th Street W. The
development agreement provided for the development of 21 acres, comprised of two separate
phases including four buildings, totaling 228,928 square feet of office/ show room/ warehouse
with a market value of $11.3 million. Spowd Developments, LLC is requesting a transfer of the
development agreement to a new company, AVBC, LLC.
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
March 26, 2015
Page 2
He commented that the developer obligations included, building a minimum of two buildings,
employing at least 40 people and maintaining the property as a rental commercial building during
the term of the TIF District. The developer has met all the requirements except for maintaining
the property as an ongoing rental commercial property over the life of the TIF district, which is a
function of time.
The development agreement includes a pay as you go TIF district, with the costs incurred secured
by the property in the form of a special assessment levied against the property. The agreement
included a Tax Increment Revenue Note which is the instrument that provides the pay as you go
financing feature whereby the developer will receive 90% of available tax increment revenue each
year.
The original Tax Increment Revenue Note was executed with Spowd Developments, Inc. and
Spowd is requesting that the rights and responsibilities included be transferred to a new entity,
AVBC, LLC. AVBC, LLC is owned by Spowd Developments.
Discussion followed.
MOTION: of Bergman, seconded by Hooppaw, adopting Resolution No. EDA-05 approving
and authorizing the execution of assignment of Development Agreement for
transfer of ownership from SPOWD Developments to AVBC, LLC. Ayes - 6 -
Nays — 0.
6. OTHER
NONE
7. STAFF UPDATES
Community Development Director Bruce Nordquist informed the Commission that a presentation
for Vitalocity would take place on April 15, 2015, at 7:00 p.m. and that the City Commissions and
Committees are invited.
ADJOURNMENT
MOTION: of Hamann-Roland, seconded by Grendahl, to adjourn. Ayes - 6 - Nays - 0.
The meeting was adjourned at 6:15 p.m.
Respectfully Submitted,
Tt7 )
n Murphy, Departme t Assi ant
Approved by the Apple Valley Economic Development Authority on