HomeMy WebLinkAbout2025-11-13 EDA Packet
Meeting Location: Municipal Center
7100 147th Street West
Apple Valley, Minnesota 55124
November 13, 2025
Economic Development Authority Special Meeting Tentative Agenda
6:30 PM
1. Call To Order
2. Approve Agenda
3. Consent Agenda
Consent Agenda Items are considered routine and will be enacted with a single
motion, without discussion, unless there is a request to have any item
separately considered. It will then be moved to the regular agenda for
consideration.
A. Approve Minutes of September 25, 2025, Regular Meeting
4. Regular Agenda
A. EDA Resolution of Support for Allocation of Pooled TIF Funds to Real Estate
Equities for the Proposed Valley Station Apartments Project
5. EDA Items And Communications
6. Staff Updates
7. Adjourn
Next Regularly Scheduled Meeting Date: Tuesday, December 23, 2025
ITEM: 3.A.
MEETING DATE: November 13, 2025
SECTION: Consent Agenda
Description:
Approve Minutes of September 25, 2025, Regular Meeting
Staff Contact:
Christina Scipioni, City Clerk
Department / Division:
Community Development
Action Requested:
Approve minutes of regular meeting on September 25, 2025.
Summary:
The minutes of the regular Economic Development Authority meeting are attached for your review
and approval.
Background:
State statute requires the creation and preservation of meeting minutes which document the official
actions and proceedings of public governing bodies.
Budget Impact:
N/A
Attachments:
1. 2025-09-25 EDA Minutes
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
September 25, 2025
Minutes of the Meeting of the Economic Development Authority of Apple Valley, Dakota
County, Minnesota, held September 25, 2025, at 7:46 p.m., at Apple Valley Municipal Center.
PRESENT: President Tom Melander, Commissioners John Bergman, Ruth Grendahl, Clint
Hooppaw, Jodi Kurtz, and Ken Johnson
ABSENT: Commissioner Lisa Hiebert
City staff members present: City Administrator Lawell, Community Development Director
Benetti, City Attorney Hills, City Clerk Scipioni, and City Planner Dill
Approval of the Agenda
President Melander asked staff if there were any changes to the agenda. Mr. Lawell stated Item B
under Consent would be moved to Regular Business.
MOTION: of Hooppaw, seconded by Grendahl, approving the agenda as amended. Ayes - 6 -
Nays - 0.
Consent Agenda
MOTION: of Hooppaw, seconded by Grendahl, approving the consent agenda. Ayes - 6 -
Nays - 0.
Consent Agenda Items
A. Approve the minutes of the January 23, 2025, regular meeting
Regular Business
A. Approve Planned Development Agreement and Development Agreement for Valley Station
Apartments (Gaslight Site), 15584 Gaslight Drive
Mr. Bennetti provided an overview of the proposed project, which was approved by the City
Council earlier in the evening. Because the Economic Development Authority owns the land, the
Planned Development Agreement and Development Agreement must be approved by both the
City Council and EDA.
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
September 25, 2025
Page 2
MOTION: of Hooppaw, seconded by Kurtz, approving a Planned Development Agreement
and a Development Agreement for Valley Station Apartments (Gaslight Site),
15584 Gaslight Drive. Ayes - 6 - Nays - 0.
Staff Updates
There were no staff updates.
Adjourn
MOTION: by Hooppaw, seconded by Bergman, to adjourn at 7:50 p.m. Ayes - 6 - Nays – 0.
Respectfully Submitted,
Christina M. Scipioni, City Clerk
Approved by the Apple Valley Economic
Development Authority on __________. Thomas O. Melander, President
ITEM: 4.A.
MEETING DATE: November 13, 2025
SECTION: Regular Agenda
Description:
EDA Resolution of Support for Allocation of Pooled TIF Funds to Real Estate Equities for the
Proposed Valley Station Apartments Project
Staff Contact:
Tim Benetti, Community Development Director
Department / Division:
Community Development
Action Requested:
Adopt the EDA Resolution of Support for the allocation of Pooled Tax Increment Funds by the
Dakota County Community Development Agency to assist in the financing and development of the
proposed Valley Station Apartments In the City of Apple Valley by Real Estate Equities, LLC.
Summary:
Real Estate Equities, LLC (also referenced as Apple Valley AH I, LLLP and collectively herein as
"Developer") is purchasing a 3.1-acre EDA-owned site located at 15584 Gaslight Drive and legally
described as Lot 1, Block 2, Carroll Center 4th Addition (the "Gaslight Site"). On September 25, 2025,
the Developer received approval to construct a new 144-unit multifamily development, with
approximately 90% of units affordable to households earning at or below 60% of Area Median
Income (AMI).
The total development cost of this project is estimated at $55 million. To help finance the project,
the Developer applied to the Dakota County Community Development Agency (CDA) for an
allocation of tax-exempt bonds, which triggered eligibility for the “automatic” 4% Low-Income
Housing Tax Credits (LIHTC) available for qualified developments. However, the Developer
represents to the City and the CDA that prevailing wage requirements, the unique design of the
Project, increased building and labor costs, and higher than expected interest rates have resulted in
unforeseen increased costs to the Project, resulting in an estimated $6 million financing gap.
To help close this gap, the Developer has secured an $808,000 Metropolitan Council Livable
Communities Demonstration Account (LCDA) Grant, and the City has tentatively committed
approximately $1.2 million in Local Affordable Housing Aid (LAHA) from its 2025 and 2026
allocations, which is permitted under the LAHA program and is an approved use of LAHA funds
under the agreement entered into by the City and the CDA on March 27, 2025. Despite these
contributions, an estimated $4 million gap remains. To address the remaining shortfall, the
Developer has requested additional financial assistance from the CDA through the allocation of
available pooled TIF funds to complete the project’s funding.
The CDA is now seeking separate consideration and potential approval from the Dakota County CDA
Board of Commissioners to allocate a portion of pooled tax increment financing (TIF) funds from the
existing TIF District No. 11 - Pennock, also referred to as the "CDA Scattered Site TIF District."
These TIF funds would be used to help close a financing gap the Developers are attempting to
reduce or eliminate in order to carry the project forward.
TIF No. 11 was created (certified) on April 17, 2002, and is set to decertify by December 31, 2029.
This district encompasses several affordable multiple-family developments in Apple Valley,
including Remington Cove, Haralson Apartments, Legacy Square Condominiums, Hearthstone, and
The Timbers. Revenues generated from these developments have contributed to the district since
2002. The district was originally established to support affordable housing development by
offsetting land acquisition costs, providing eligible on-site improvements, and promoting the
development and preservation of affordable housing both within Apple Valley and in neighboring
communities.
Because this TIF District No. 11 is managed by Dakota County, no direct City funds or budget
allocations are involved in this request. Adoption of this EDA resolution would formally convey the
City’s support and encouragement for the Dakota County CDA Board of Commissioners to authorize
the allocation of pooled TIF funds to assist in financing the Valley Station Apartments project.
Background:
The Site is the former Apple Valley Park and Ride facility, which was decommissioned by the
Minnesota Valley Transit Authority (MVTA) and is no longer in service.
In 2024, the City issued a Request for Proposals (RFP) to redevelop the Site and subsequently
selected the Developer’s proposal for a four-story, workforce (affordable) apartment community. A
purchase agreement between the City and the Developer was executed shortly thereafter.
The City Council approved the proposed development on September 25, 2025.
Budget Impact:
N/A
Attachments:
1. Resolution of Support_Pooled TIF Funds_Valley Station Apts_EDA 11-13-2025
CITY OF APPLE VALLEY
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA 2025 - ____
A RESOLUTION OF SUPPORT FOR THE ALLOCATION OF DAKOTA COUNTY
COMMUNITY DEVELOPMENT AGENCY POOLED TAX INCREMENT FUNDS TO ASSIST IN
THE FINANCING AND DEVELOPMENT OF THE PROPOSED VALLEY STATION
APARTMENTS IN THE CITY OF APPLE VALLEY BY REAL ESTATE EQUITIES, LLC
WHEREAS, on October 24, 2024, the City of Apple Valley’s Economic Development
Authority (the “EDA”) approved a Purchase and Sale Agreement between the EDA and Real
Estate Equities, LLC (also referenced as Apple Valley AH I, LLLP and collectively as the
“Developer”) for the sale of a 3.1 acre site owned by the EDA and legally described as Lot 1,
Block 2, Carroll Center 4th Addition, Dakota County, Minnesota, and addressed as 15584
Gaslight Drive, Apple Valley, Minnesota (the “Subject Property”); and
WHEREAS, on September 25, 2025, the city council for the City of Apple Valley (the
“City”) adopted Resolution No. 2025-143, approving issuance of a building permit to the
Developer to construct a new 144-unit affordable workforce apartment building (the “Project”)
on the Subject Property, with an estimated total development cost of $55,000,000 (fifty-five
million dollars) for the project; and
WHEREAS, to finance the Development, the Developer has applied to the Dakota
County Community Development Agency (the “CDA”) for an allocation of tax-exempt bonds
which activates the allocation of automatic 4% low-income housing tax credits to be applied
towards the Development; and
WHEREAS, the Developer represented to the City that prevailing wage requirements,
the unique design of the Project, increased building and labor costs, and higher than expected
interests rates have resulted in unforeseen increased costs to the Project, thus creating a financing
gap of over $6 million; and
WHEREAS, as part of an effort to close this gap, the Developer received a Metropolitan
Council Livable Community Demonstration Account (LCDA) grant of $808,000 through the
City, and the City has tentatively agreed to commit approximately $1,200,000 of its 2025 and
2026 Local Affordable Housing Aid (LAHA) funds to the Project; leaving approximately $4
million needed to complete the financing package; and
WHEREAS, the CDA is considering allocating up to $4,000,000 of pooled tax increment
financing (TIF) funds that have been generated and collected from properties within Apple
Valley under its existing TIF District No. 11 - Pennock, also referred to as the “CDA’s Scattered
Site TIF district.” The TIF District No. 11-Pennock includes several affordable multiple family
developments within Apple Valley, such as Remington Cove, Haralson Apartments, Legacy
Square Condominiums, Hearthstone and The Timbers; and
2 of 2
WHEREAS, the purpose of these Dakota County CDA controlled pooled TIF funds is to
help offset land acquisition costs, provide eligible on-site improvements, support certain
affordable housing projects within and outside the City of Apple Valley, and to develop and
preserve affordable housing for the City’s and neighboring communities’ residents with quality,
safe and healthy housing; and
WHEREAS, it is in the best interest of the City of Apple Valley that the TIF District No.
11 - Pennock funds received by the CDA from the foregoing properties/projects be used to
support projects within the City of Apple Valley.
NOW THEREFORE BE IT RESOLVED, that the Economic Development Authority for
the City of Apple Valley hereby expresses its support and encouragement to the Dakota County
Community Development Agency to allocate a portion of its pooled TIF funds generated
specifically by TIF District No. 11 - Pennock (CDA’s Scattered Site TIF District) to Real Estate
Equities, LLC / Apple Valley AH I, LLLP, to be used exclusively towards the Valley Station
Apartments project and development in the City of Apple Valley, Minnesota.
ADOPTED this 13th day of November 2025.
____________________________________
Thomas O. Melander, President
Apple Valley Economic Development Authority
ATTEST:
___________________________________
Christina M. Scipioni, City Clerk/Secretary
CERTIFICATE
I, Christina M. Scipioni, Apple Valley City Clerk and Secretary for the Economic
Development Authority, hereby certify that the foregoing is a true and correct copy of a
resolution adopted by the Apple Valley Economic Development Authority on November 13,
2025, the original of which is in my possession, dated this 13th day of November 2025.
____________________________________
Christina M. Scipioni, City Clerk/Secretary