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HomeMy WebLinkAbout07/28/2016 EDA Meeting••• •••• ••••• ••• Meeting Location: Municipal Center city of Apple 7100 147th Street West VaIIey Apple I Valley, Minnesota 55 124 July 28, 2016 ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA 6:00 p.m. 1. Call to Order 2. Approve Agenda 3. Approve Minutes of May 26, 2016 4. Approve Consent Agenda Items Consent Agenda Items are considered routine and will be enacted with a single motion, without discussion, unless a commissioner or citizen requests to have any item separately considered. It will then be moved to the regular agenda for consideration. None 5. Regular Agenda Items A. Adopt Resolution for LCDA — TOD Grant Funding; the Redevelopment and Repositioning at 147th Street/Garrett and Glazier Avenue 6. EDA Items and Communications (For items EDA wishes to discuss) 7. Staff Updates A. Upcoming Review of Department of Employment and Economic Development (DEED) Minnesota Investment Fund Agreements for Uponor B. Review and Discussion; Multi -family Development in the City 8. Adjourn Regular meetings are broadcast, live, on Charter Communications Cable Channel 180 and on the City's website at www.cityofapplevalley.org ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota May 26, 2016 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held May 26, 2016, at 6:00 p.m., at Apple Valley Municipal Center. PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland and Hooppaw. ABSENT: Commissioners Maguire and Melander City staff members present were: Executive Director Tom Lawell, City Attorney Michael Dougherty, City Engineer Brandon Anderson, Public Works Director Matt Saam, Finance Director Ron Hedberg, Planner Kathy Bodmer, and Department Assistant Joan Murphy. Meeting was called to order at 6:01 p.m. by President Goodwin. APPROVAL OF AGENDA MOTION: of Hooppaw, seconded by Hamann -Roland, approving the agenda. Ayes - 5 - Nays -0. APPROVAL OF MINUTES MOTION: of Grendahl, seconded by Bergman, approving the minutes of the meeting of March 24, 2016, as written. Ayes - 5 - Nays - 0. CONSENT AGENDA None CREATION OF TIF DISTRICT FOR VALLEY BLUFFS SENIOR (PRELIMINARY PLATTED AS HUDSON DIVISION) Community Development Director Bruce Nordquist stated the City approved the Valley Bluffs Senior Apartment development, a $35 million development on the southwest corner of Cedar Avenue and 140th Street, at its January 28, 2016, meeting. The property owner has requested financial development assistance from the Dakota County CDA. The CDA is taking the lead to help the developer to identify financing assistance that will create affordable senior housing. The Valley Bluffs Senior Apartments would be set up for all of the 163 units to be affordable at 60 percent of the medium income or less. Similar income requirements were used for the CDA - owned Orchard Square, Cortland Square and Cobblestone Square senior apartment developments. The CDA also provided financing assistance for the privately -developed Apple Valley Villa and The Timbers senior housing. For a household with two people, the income requirement would be $41,220 in 2016. When financing assistance is requested, the policy of the CDA is the following: Economic Development Authority City of Apple Valley Dakota County, Minnesota May 26, 2016 Page 2 1. Receive local city review and support of the TIF request. 2. Have the Housing TIF District run the allowed duration of 25 years. To achieve the level of affordability sought by the CDA and the Developer, the developer's request to the CDA includes TIF, HOME (HUD) funds, Minnesota Housing Finance Agency (MHFA) tax exempt bonds, and 4% housing tax credits. No Section 8 project based rent assistance is sought from the CDA or HUD. The City is a strong supporter of senior affordable housing and this development helps the City achieve the affordable housing goals it has with the Metropolitan Council. In spite of the resources identified, the developer indicates that there is still a financing gap and has asked for the City's help. The developer approached the City requesting a reduction of park dedication, sewer availability charges (SAC) and park dedication fees. Instead, staff has offered a reprogramming of $100,000 in 2016/2017 CDBG housing rehabilitation deferred loans to apply toward the site acquisition/site preparation that is required for the 163 unit project. The reprogramming might reduce the number of single family rehab projects this year by five, but the reprogramming is similar to what the City did in 2012 to assist the repair of the Glazier Townhomes directly adjacent to the 147th Street Redline Station. This would be the second Cedar Avenue/Redline related TOD, station area, affordable housing investment of CDBG resources made by the City. Further discussion of the reprogramming of the CDBG funds will occur at a later date. For now, Dakota County seeks the City's support for establishing the TIF Housing District. Lisa Alfson, Director of Community and Economic Development for Dakota County CDA, introduced the need for a TIF district. Margaret Dykes, Assistant Director of Dakota County CDA, provided additional information. Discussion followed. MOTION: of Hooppaw, seconded by Grendahl, recommending the item be tabled. Ayes - 5 - Nays - 0. TIF PROJECT AREA CONSISTENT WITH SPECIAL LEGISLATION Community Development Director Bruce Nordquist stated that on April 1, Fischer Sand and Aggregate made application to the Apple Valley EDA for consideration of tax increment financing and business assistance in the mining area. The proposed project is the reclamation of a gravel mining site and site preparation for mixed use development. Special legislation in 2013 allows the sand and gravel area to be qualified as a project area which would lead to the establishment of tax increment districts in the future, if certain conditions are met. Only the establishment of a "project area" is being considered at this time. Economic Development Authority City of Apple Valley Dakota County, Minnesota May 26, 2016 Page 3 Conditioned on a favorable legal opinion, the EDA is being requested to recommend the City Council adopt a resolution establishing a project area for future consideration of tax increment districts. The City Council is being requested to adopt the resolution establishing a project area. The 2030 Comprehensive Plan was completed by the City and accepted by the Metropolitan Council in 2009. Significant public infrastructure improvements will be required and installed in the greater MBC area including: Significant storm water ponding and distribution, sanitary water and sewer that matches the intensity of development and the Johnny Cake Ridge Road and 153rd, 155th and 157th Street extensions. Discussion followed. MOTION: of Hamann -Roland, seconded by Hooppaw, recommending the City Council adopt a resolution approving TIF Project Area consistent with Special Legislation. Ayes - 5 - Nays - 0. ADJOURNMENT MOTION: of Hooppaw, seconded by Hamann -Roland, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 6:45 p.m. Respectfully Submitted, Murphy, Departme t Assi ant Approved by the Apple Valley Economic Development Authority on Tom Goodwin, President City of AppleVlley TO: FROM: MEETING DATE: SUBJECT: President, Commissioners, Executive Director Bruce Nordquist, AICP, Community Development Director July 28, 2016 MEMO Community Development Adopt a Resolution supporting submitting a Livable Community TOD Grant Application at 147th Street/Garrett and Glazier Ave During the Spring, 2016, property owners at Commons I & II and Paideia Academy were undergoing changes that allow new opportunities to be considered: - Commons II was planned to be sold by the owner and renovated by a buyer; Wings Financial has purchased the building. - Commons I was planned to be renovated by the present owner, John Hanson. - Paideia Academy determined they would no longer lease their existing space and the ownership, Metro Equity LLC, could consider other options Working with staff, it was determined that redevelopment led by the property owners, to include Bogarts, allows about 5 acres on the east end of the 21 acre block to have a higher intensity mixed use (housing, retail). Those new uses when combined with the office updates, would allow the entire larger block to be re -imagined, an interest of all property owners including Wing's Financial. Approximately 260 apartments or condominiums and 42,000 sq. ft. of first floor retail is proposed through redevelopment. Through owner's representation, staff has received the following concept (see attached plan) and is planning to request a Livable Community Transit Oriented Development Grant in the amount of $1.7 million. Use of funds: • S500,000 toward demolition of Paideia and Bogart uses. • $500,000 toward structured parking for Commons II with the renovation of the office space. • $500,000 toward storm water amenity improvements interior to the location and access improvements at the perimeter of the redevelopment area. • S200,000 toward improved pedestrian and bicycle trails in all directions on the superblock and leading toward the 147th Street transit station. The Livable Community grant application was submitted as required on July 1, 2016. An official resolution of support is sought and required from the EDA and City for the application to be further considered by the Metropolitan Council. APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA -16- A RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES TRANSIT ORIENTED DEVELOPMENT FUNDING AND SUPPORTING AN APPLICATION FOR GRANT FUNDS WHEREAS, the City of Apple Valley is a participant in the Metropolitan Livable Communities Act ("LCA") Local Housing Incentives Program for 2016 as determined by the Metropolitan Council, and is therefore eligible to apply for LCA Livable Communities Demonstration Account and Tax Base Revitalization Account Transit Oriented Development (collectively, "TOD") funds; and WHEREAS, the Economic Development Authority has identified a proposed project within the City that meets TOD purposes and criteria and is consistent with and promotes the purposes of the Metropolitan Livable Communities Act and the policies of the Metropolitan Council's adopted metropolitan development guide; and WHEREAS, the Economic Development Authority has the institutional, managerial and financial capability to adequately manage an LCA-TOD grant; and WHEREAS, the Economic Development Authority certifies that it will comply with all applicable laws and regulations as stated in the grant agreement; and WHEREAS, the Economic Development Authority acknowledges TOD grants are intended to fund projects or project components that can serve as models, examples or prototypes for TOD development or redevelopment elsewhere in the Region, and therefore represents that the proposed project or key components of the proposed project can be replicated in other metropolitan -area communities; and WHEREAS, only a limited amount of grant funding is available through the Metropolitan Council's Livable Communities TOD initiative during each funding cycle and the Metropolitan Council has determined it is appropriate to allocate those scarce grant funds only to eligible projects that would not occur without the availability of TOD grant funding. NOW, THEREFORE, BE IT RESOLVED that, after appropriate examination and due consideration, the Apple Valley Economic Development Authority: 1. Finds that it is in the best interests of the City's development goals and priorities for the proposed TOD Project to occur at this particular site and at this particular time. 2. Finds that the TOD Project component(s) for which Livable Communities TOD funding is sought: (a) will not occur solely through private or other public investment within the reasonably foreseeable future; and (b) will occur within the three year term of the Development grant award only if Livable Communities TOD funding is made available for this project at this time. 3. Authorizes its Executive Director to support on behalf of the City an application for Metropolitan Council Livable Communities TOD grant funds for the TOD Project component(s) identified in the application, and to execute such agreements as may be necessary to implement the TOD Project on behalf of the City. ADOPTED this 28th day of July, 2016. ATTEST: Pamela J. Gackstetter, Secretary 2 Tom Goodwin, President a le City of AppValley TO: President, Commissioners, Executive Director MEMO Community Development FROM: Bruce Nordquist, AICP, Community Development Director MEETING DATE: July 28, 2016 SUBJECT: Staff Updates As time permits on July 28, staff will present information concerning the following two topics: A. Upcoming Review of Department of Employment and Economic Development (DEED) Minnesota Investment Fund Agreements for Uponor B. Review and Discussion; Multi -family Development in the City