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Home My WebLink About05/28/15 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 meeting at the Municipal Center, on Thursday, May 28, 2015, at 6:00 p.m. to consider the items listed in the following agenda: MAY 28, 2015 ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA 6:00 p.m. 1. Call to Order. 2. Approval of Agenda. 3. Approval of Minutes of April 9, 2015. 4. Approval of Consent Agenda Items*: None 5. Regular Agenda Items: A. Adopt Resolution Allocating Resources from the EDA Operations Fund for Central Village West Parking Lot. 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 ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota April 9, 2015 Minutes of the meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held April 9, 2015, at 7:00 p.m., at Apple Valley Municipal Center. PRESENT: Commissioners Goodwin, Bergman, Grendahl, Hamann-Roland, Hooppaw, Maguire and Melander. ABSENT: None City staff members present were: Executive Director Tom Lawell, City Attorney Michael Dougherty, Community Development Director Bruce Nordquist, Finance Director Ron Hedberg, Planner Kathy Bodmer, Planner Margaret Dykes and Department Assistant Joan Murphy. Meeting was called to order at 8:15 p.m. by President Goodwin. APPROVAL OF AGENDA MOTION: of Hamann-Roland, seconded by Hooppaw, approving the agenda. Ayes - 7 - Nays -0. APPROVAL OF MINUTES MOTION: of Grendahl, seconded by Bergman, approving the minutes of the meeting of March 26, 2015, as written. Ayes - 6 - Nays — 0. Abstained — 1 (Goodwin) CONSENT AGENDA MOTION: of Hamann-Roland, seconded by Hooppaw, approving Partial Release of Signage and Access Easement on the western fifteen feet (15') of Lot 2, Block 1, CARROLL CENTER 4TH ADDITION (Carmike Theater Property). Ayes - 7 - Nays — 0. UPONOR ANNEX EXPANSION Planner Margaret Dykes introduced the item and stated it was previously presented and discussed at the City Council meeting prior to tonight's EDA meeting. Finance Director Ron Hedberg stated a public hearing was scheduled to consider a modification to the Master Development Program and the establishment of Tax Increment Financing District No. 16 to address a new project and the provision of a business subsidy. Prior to the establishment of any new Tax Increment Financing (TIF) it is necessary to amend the Master Development District to include the TIF plan for the new district. The City and EDA have received a request for financial assistance from Uponor NA Asset Leasing Inc. to assist in the expansion of their annex facility located at 148th Street and Everest Economic Development Authority City of Apple Valley Dakota County, Minnesota April 9, 2015 Page 2 Avenue near the current company headquarters. One of the pieces of the assistance being considered is in the form of a pay as you go Economic Development TIF District. The project includes the renovation and expansion of Uponor's existing 36,000 square annex facility to create an approximately 86,000 square foot office and manufacturing facility consisting of approximately 6,000 square feet of office space and approximately 80,000 square feet of manufacturing space. The total development costs are estimated to be $12,300,000 on the site. The assistance request is to offset a portion of the development cost. President Goodwin opened the public hearing at 8:19 p.m. President Goodwin closed the public hearing at 8:20 p.m. MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. EDA-06 approving Amendments to Master Development Program, the Establishment of Tax Increment Financing District No. 16 and approving the Tax Increment Financing Plan therefor and approving Business Subsidy. Ayes - 7 - Nays - 0. 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 approximately $504,000 in Tax Increment Financing, which would be used to offset costs for expansion of the subject building. The $1,304,000 contribution by the EDA is approximately 11% of the total project costs. President Goodwin opened the public hearing at 8:20 p.m. President Goodwin closed the public hearing at 8:21 p.m. MOTION: of Hamann-Roland, seconded by Melander, adopting Resolution No. EDA-07 approving Business Subsidy Agreement between the Apple Valley Economic Development Authority and Uponor, Inc to provide up to $800,000 for substantial renovation and construction costs for an 86,000 sq. ft. manufacturing facility at 14800 Everest Avenue. Ayes - 7 - Nays - 0. 6. OTHER NONE 7. STAFF UPDATES NONE Economic Development Authority City of Apple Valley Dakota County, Minnesota April 9, 2015 Page 3 ADJOURNMENT MOTION: of Hooppaw, seconded by Grendahl, to adjourn. Ayes - 7 - Nays - 0. The meeting was adjourned at 8:22 p.m. Respectfully Submitted, n Murphy, Departn{ent As stant Approved by the Apple Valley Economic Development Authority on PROJECT NAME: Central Village West Parking Lot PROJECT DESCRIPTION: • Allocate funds for the construction of a 130 -space parking lot in the Central Village West area STAFF CONTACT: Margaret Dykes, Planner DEPARTMENT /DIVISION: Community Development Department APPLICANT: City of Apple Valley PROJECT NUMBER: PC 15 -02 -M City of App Valley ITEM: EDA MEETING DATE: SECTION: 5A May 28, 2015 Regular Action Requested • Adopt the draft resolution approving the allocation of $273,048 from funds available to the Apple Valley Economic Development Authority for the construction of a 130 -space parking lot on Lot 1, Block 2, Village at Founders Circle ( "Project 2015 - 105 ") Project Summary /Issues Earlier this year, the City submitted an application for a Redevelopment Incentive Grant (RIG) for $99,585 from the Dakota County Community Development Agency (CDA). The funds are slated to be used to partially support a shared, public neighborhood parking lot in the Central Village area on a 1.64 -acre lot north of the Grandstay Hotel. The Central Village Plan, which was adopted by the City in 2002, always envisioned a public parking solution as the area intensified as a destination. Surrounding businesses, including the Grandstay Hotel, Culver's, and Apple Valley Ford, are all becoming more intensified in their uses, and the shared parking lot will help them solve peak parking demand that each experiences. Staff is discussing a shared license agreement arrangement with the businesses so that they could use up to half of the spaces at various times as the need arises, and the businesses would pay towards the costs of seasonal maintenance (mowing, snow plowing, etc.). The shared parking lot will also help support Kelley Park especially when there are large special events. The CDA has provided $68,396 in RIG funds, and has stated it will reallocate to this project another $15,000 from a CDA grant provided to the City that has not yet been used. The total to be provided by the CDA is $83,396. The CDA chose not to fully fund the City's request because of the number of applications received from other communities. The City Engineer has refined the design and cost estimates for the proposed 130-space parking lot. The cost, which includes landscaping and parking lot lights, is estimated to be $356,444. There has been an increase in the budget of about $50,000 to account for the installation of four (4) parking lot lights, which staff believes are necessary to safety and visibility. The City Engineer has stated that to save time and costs, the project could be incorporated into an existing street project, Project 2015 -105. If the City Council and AVEDA approve the parking lot and the allocation of the funds, the City Engineer will recommend a change order to Project 2015 -105 at a later meeting. Budget Impact The CDA RIG funds will cover $83,396. Staff has identified funds from the Economic Development Authority budget for the remaining amount of $273,048. A breakdown of the funds to be expended is shown in the following table: Project Activities/Expenses Est, Costs Funding Source Mobilization and Preliminary Site Preparation $6,979.00 EDA Excavation $80,847.00 EDA 130-space parking lot construction (including striping, lighting, and islands) $155,612.00 RIG/EDA Landscaping $66,513.00 EDA Administration/overhead $46,493.00 EDA Total: $356,444.00 y / 4 Budget Impact The CDA RIG funds will cover $83,396. Staff has identified funds from the Economic Development Authority budget for the remaining amount of $273,048. A breakdown of the funds to be expended is shown in the following table: Attachment(s) 1. Site Map 2. Parking lot draft plan 3. Budget estimate APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA -15- A RESOLUTION APPROVING THE ALLOCATION OF FUNDS AVAILABLE TO THE APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY FOR THE CONSTRUCTION OF A PUBLICLY OWNED PARKING LOT WHEREAS, the Apple Valley Economic Development Authority ( "AVEDA ") has certain funds available to it to use for the advancement of economic development in the City of Apple Valley; and WHEREAS, the City of Apple Valley (the "City ") is the owner of a 1.64 -acre property legally described as Lot 1, Block 2, Village at Founders Circle (the "Site "); and WHEREAS, the City has proposed the construction of a 130 -space publicly owned parking lot on the Site for the purpose of providing public parking in the Central Village area of Downtown Apple Valley for businesses and residents; and WHEREAS, the City Engineer has drafted a preliminary plan and budget and estimates a cost of $356,444 for construction for a parking lot ( "Project 20015- 105 "); and WHEREAS, the City has received grant funds from the Dakota County Community Development Agency in the amount of $83,396 to apply to Project 2015 -105; and WHEREAS, the EDA finds it is in the best interest of the City and its residents that the EDA allocate $273,048 of its available funds to construct Project 2015 -105. NOW, THEREFORE, be it resolved that the AVEDA approves the allocation of $273,048 to be used toward Project 2015 -105. ATTEST: ADOPTED this 28 day of May, 2015. Pamela J. Gackstetter, Secretary Tom Goodwin, President CERTIFICATE I, Pamela Gackstetter, Apple Valley Economic Development Authority Secretary, hereby certify that the forgoing is a true and correct copy of a resolution adopted by the Apple Valley Economic Development Authority on May 28, 2015, the original of which is in my possession, dated this day of , 2015 . Pamela J. Gackstetter, Secretary CENTRAL VILLAGE WEST PARKING LOT AREA MAP •, I , it I 1E1 or' ril.2) i I I 1 1 [1 0 n 1 L 0 q i 11 p .../ • r; 2' k /7;' = aaia a Id INVI1IV9 r 11 f t.t = == = 111 111, ,--, 1 II ; 0 z 11.1 z U tu, Amount 00'050`9 $ 00'099 $ $ 175.20 SL•E6 $ 100'L68'SL $ 00'OS6'7 $ 00'08L'TZ $ $ 60,500.00 00'081'81 $ 00'O $ 00 $ OS'9991 $ 00'S90't $ 00'050'9 $ 100'EE1 $ 100'0EE $ $ 60,000.00 I Sb'0S6'60£ $ $ 46,492.57 1 ZO'£bb'9S£ Unit Cost 00'0S0'9 $ 00'01 $ 09't /I Si OS'E1 $ 00 $ 001T $ ' OS'09 $ 00'81 $ 00'OZ17'Z $ $ 12,500.00 S9'1 $ OE'0 $ 05'5 $ 1 06'1 $ 1 00'OEE $ Quantity 99 ZT SL ZZ9S OSI 0861 0001 0101 0101 OSSE 10011 10L i!ufl S l 3l AS ill AD AD NI NOl dl Sl 3l 3l' AS 91 ' ST 30% of material costs 15% of total costs wail P!8 MOBILIZATION REMOVE CURB AND GUTTER REMOVE BITUMINOUS PAVEMENT PAVEMENT COMMON EXCAVATION PREMIUM TOPSOIL BORROW (LV) AGGREGATE BASE CLASS 5 FOR TRAILS, WALKS AND DRIVES TYPE SPWEB340B 3" THICK CONCRETE CURB AND GUTTER, DESIGN B618 TRAFFIC CONTROL LIGHTING SILT FENCE, MACHINE SLICED 4" Solid White - Paint SODDING TYPE LAWN FERTILIZER TYPE 3 TURF ESTABLISHMENT 1 Landscaping Administration # wail i C CU CL 0 N Excavation C O V I- c 0 U Landscaping Subtotal Final Total Central Village West Parking Lot Presentation to the EDA May 28, 2015 Location -7075 152St. W. nd Aerial View Proposed Parking Lot Design Proposed Budget Funding Sources Funding Project Activities/Expenses Est. Costs Source Mobilization and Preliminary Site $6,979.00EDA Preparation Excavation$80,847.00EDA 130-space parking lot construction $155,612.00 (including striping, lighting, and RIG/EDA ($83,396 - CDA RIG) islands) Landscaping$66,513.00EDA Administration/overhead$46,493.00EDA Total:$356,444.00 Schedule DateBodyProposed Action May 28EDAAllocate $273,048 of fundsavailable to EDA for publicly owned parking facility May 28City Council Authorizestaff to prepare final plans and budget for parking June 17Planning Hold publichearing for zoning Commissionamendments and rezoning July 9CityCouncilReviewzoning amendments and rezoning TBDCityCouncil Authorize change order for existing street project2015-105for construction of parking lot Recommended Action Adopt the draft resolution approving the allocation of • $273,048 from funds available to the Apple Valley Economic Development Authority for the construction of a 130-space parking lot on Lot 1, Block 2, Village at Founders Circle (“Project 2015-105”) Questions?