HomeMy WebLinkAbout09/22/2016 EDA Meetingcity of AppleVlle
Y
Meeting Location: Municipal Center
7100 147th Street West
Apple Valley, Minnesota 55124
September 22, 2016
ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA
6:00 p.m.
1. Call to Order
2. Approve Agenda
3. Approve Minutes of July 28, 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. Parkside Village Gabella
1. Adopt Resolution Authorizing Execution of Tax Increment Revenue Note
2. Adopt Resolution Partially Forgiving Repayment of Business Subsidy Subject to
Execution of Amended and Restated Promissory Note and First Amendment to
Business Subsidy Agreement
3. Authorize First Amendment to Business Subsidy Agreement
B. Adopt Resolution Approving the 2017 EDA Budget
6. EDA Items and Communications
(For items EDA wishes to discuss)
7. Staff Updates
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
July 28, 2016
Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota
County, Minnesota, held July 28, 2016, at 6:00 p.m., at Apple Valley Municipal Center.
PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland, Hooppaw and
Melander.
ABSENT: Commissioner Maguire
City staff members present were: Executive Director Tom Lawell, Community Development
Director Bruce Nordquist, 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 Hamann -Roland, seconded by Grendahl, approving the agenda. Ayes - 6 - Nays
- 0.
APPROVAL OF MINUTES
MOTION: of Bergman, seconded by Hooppaw, approving the minutes of the meeting of May
26, 2016, as written. Ayes - 5 - Nays - 0. Abstain — 1 (Melander)
CONSENT AGENDA
None
LCDA — TOD GRANT FUNDING; THE RDEVELOPMENT AND REPOSITIONING AT
147TH STREET/GARRETT AND GLAZIER AVENUE
Community Development Director Bruce Nordquist stated that 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
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
July 28, 2016
Page 2
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 a concept and is planning to request a Livable
Community Transit Oriented Development Grant in the amount of $1.7 million.
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.
Discussion followed.
MOTION: of Hamann -Roland, seconded by Bergman, adopting Resolution No. EDA 2016-05
identifying the need for Livable Communities Transit Oriented Development
funding and supporting an application for grant funds. Ayes - 4 - Nays — 1 —
(Grendahl. Abstain — 1 (Hooppaw)
ADJOURNMENT
MOTION: of Hamann -Roland, seconded by Grendahl, to adjourn. Ayes - 6 - Nays - 0.
The meeting was adjourned at 6:52 p.m.
Respectfully Submitted,
Murphy, Departmerk Assis
Approved by the Apple Valley Economic
Development Authority on Tom Goodwin, President
SOW
tafeelk
0.11**
06.06
City of Apple
Valley
MEMO
Finance Department
TO: President, Economic Development Authority Commissioners, and
Tom Lawell, Executive Director
FROM: Ron Hedberg, Finance Director
DATE: September 15, 2016
SUBJECT: Adopt Resolution Authorizing Execution of Tax Increment Revenue Note
(Parkside Gabella Project)
Adopt Resolution Partially Forgiving Repayment of Business Subsidy
Introduction
On July 10, 2014, the Apple Valley Economic Development Authority (EDA) entered into a
Development Assistance Agreement and Business Subsidy Agreement with IMH Special Asset
NT 175 -AVN, LLC (IMH) to provide financial support in the amount of up to $2,684,000 for
substantial site improvements involved in the construction of the Parkside Gabella Apartments.
In addition to this "Pay as You Go" TIF financing, the Business Subsidy Agreement provided for
the refund of penalties and interest that had accrued on delinquent special assessment amounts up
through 2012.
Pay as you Go TIF Financing — TIF Note
The Development Assistance Agreement included a "pay as you go" financing provision where
the developer could be reimbursed for eligible development costs related to the construction of
Parkside Gabella Apartments in the first phase of the TIF 15 Parkside District. They have
documented over $3,218,741 of eligible site improvement costs per the development agreement,
which exceeds the $2,684,000 maximum amount provided for in the TIF note. The agreement
provides for a minimum assessed valuation for the Phase I, Parkside Gabella project at
$21,345,000 and the current market value as determined by the County Assessor as of January 1,
2016, is $21,415,300.
Upon IMH meeting the construction jobs goal, documenting eligible costs exceeding $2,684,000,
and the issuance of Certificate of Occupancy, the development agreement calls for the execution
of a TIF note.
On January 28, 2016, the EDA certified the benefit date and acknowledged IMH Special Asset
NT 175 -AVN, LLC had met the construction job creation goals. As of March 2015, the project
created 159 construction jobs with an average of $30 per hour plus, the value of benefits
provided.
On August 29, 2016, we received IMH' s Compliance Certificate for meeting the occupancy
requirements, of which a copy is attached. The requirement for the first phase is that 40 units are
occupied or held for occupancy, by person whose income is 50% or less than the Dakota County
median income of $85,800 for a family of four.
Business Subsidy Agreement — Refund of Penalties and Interest
The Business Subsidy Agreement provided for the refund of penalties and interest that had
accrued on delinquent special assessment amounts up to 2012. The total amount of penalties and
interest on delinquent special assessments that had accrued through 2012 and would be
potentially refunded totals $1,132,000. The City receives these penalties and interest from
Dakota County as IMH makes the annual payments on the Confession of Judgement payments.
The total amount refunded to date to IMH under this provision is $762,238.72 the amounts that
are refunded to IMH are in the form of a forgivable loan. Any remaining amounts would be paid
on Phase II upon the issuance of building permit for the Phase II — Galante improvements.
Upon IMH meeting the construction jobs goal and completing the minimum improvements for
Phase I, which included the Parkside Gabella building, the Business Subsidy Agreement calls for
the forgiveness of the loan related to the Phase I improvements. The attached resolution forgives
the amounts included in the first phase and includes an amendment to the Business Subsidy
Agreement, reducing the amount to the amount that would be paid under the Phase I1 portion of
the project, or $369,083.28.
Background:
The development assistance agreement offsets the costs of constructing the Parkside Gabella
Apartment project. The construction of Parkside Gabella is complete and the final certificate of
occupancy was issued on May 31, 2016.
The development assistance agreement provided for the reimbursement up to $2,684,000 of
eligible costs associated with constructing the Parkside Gabella Apartments. IMH has submitted
invoices for eligible site improvement and construction costs related to the construction of
Parkside Gabella Apartments totaling $23,375,600, which exceeds the maximum of $2,684,000.
The "pay as you go financing" calls for repayment from the annual tax increment collected from
the project and is dependent on the property owner making the annual property tax payments.
The terms of the TIF Revenue Note include an interest rate of 5% and the amount of the note is
$2,684,000. The annual payment is set at 70% of the available Tax Increment generated by the
project and are applied first to interest and then towards the principal balance until the balance is
retired. The first year of increment repayment will be 2017.
The next key target date included in the Business Subsidy Agreement for the Parkside IMH
projects is for the developer to submit for and have issued, the building permit for phase II, the
Galante building by April 30, 2017. The building plans have been submitted and are in the
review process for this second phase.
Staff Recommendation
Staff recommends the adoption of the attached resolutions:
® Authorizing the execution of a Tax Increment Revenue Note
• Resolution Partially Forgiving Repayment of Business Subsidy
EDA Action Requested:
Adopt Resolutions:
• Authorizing Execution of Tax Increment Revenue Note (Parkside — Gabella Project)
• Resolution Partially Forgiving Repayment of Business Subsidy
Attachments:
• Resolution Authorizing Execution of Tax Increment Revenue Note (Parkside — Gabella
Project).
• Resolution Partially Forgiving Repayment of Business Subsidy
• First Amendment to Business Subsidy Agreement
• Form of Phase I TIF Note
APPLE VALLEY ECONOMIC DEVELOPMENT AUTORITY
RESOLUTION NO. EDA -16 -
RESOLUTION AUTHORIZING THE EXECUTION OF TAX INCREMENT
REVENUE NOTE (PARKSIDE - GABELLA PROJECT)
WHEREAS, the Apple Valley Economic Development Authority entered into a
Development Assistance with IMH Special Asset NT 175 -AVN, LLC dated Augustl 8,
2014, and
WHEREAS, the Development Assistance Agreement provided for the financing of costs
incurred in connection with construction of the Parkside Gabella Apartments consisting
of 196 dwelling units, and
WHEREAS, IMH Special Asset NT 175 -AVN, LLC has submitted documentation of
eligible expenditures exceeding the maximum amount provided for in the Development
Assistance Agreement, and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Apple
Valley Economic Development Authority, Minnesota, approves the Tax Increment Revenue
Note in the form attached, and the President and Secretary are hereby authorized and
directed to execute the Tax Increment Revenue Note on behalf of the EDA.
ADOPTED this 22nd day of September 2016.
Thomas Goodwin, President
ATTEST:
Pamela J. Gackstetter, Secretary
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA -16-
A RESOLUTION PARTIALLY FORGIVING REPAYMENT OF BUSINESS SUBISDY
WHEREAS, pursuant to the Minnesota Business Subsidy Act, set forth in Minnesota
Statutes, Sections 1.16J.993 to 116J.995, the Apple Valley Economic Development Authority
("EDA") granted a business subsidy to IMH Special Asset NT 175 -AVN, LLC ("IMH"); and
WHEREAS, the terms of the EDA's agreement with IMH are set forth in the Business
Subsidy Agreement, dated July 10, 2014 ("Agreement"); and
WHEREAS, the EDA has advanced $762,238.78 to IMH pursuant to the Agreement and in
accordance with the Promissory Note executed by IMH on July 10, 2014; and
WHEREAS, IMH certified that it has met the job and wage goals set forth in Section 2.5 of
the Agreement, as related solely to the Phase 1 Improvements, as defined in the Agreement; and
WHEREAS, no Event of Default, as set forth in Section 7.1 of the Agreement, currently
exists; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the EDA
that it hereby forgives any obligation by IMH to repay the $762,238.78, including any and all
interest accrued thereon, in accordance with Section 5.1(a) of the Agreement, on the condition that
IMH execute the First Amendment to Business Subsidy Agreement and the Amended Restated
Promissory Note (forms of which are attached hereto).
ADOPTED this 22nd day of September, 2016.
Tom Goodwin, President
ATTEST:
Pamela J. Gackstetter, Secretary
FIRST AMENDMENT TO BUSINESS SUBSIDY AGREEMENT
THIS FIRST AMENDMENT TO BUSINESS SUBSIDY AGREEMENT ("First
Amendment") is made this day of , 2016, by and between IMH Special Asset
NT 175 — AVN, LLC, an Arizona limited liability company, ("IMH") and Apple Valley
Economic Development Authority, a public body corporate and political subdivision of the State
of Minnesota ("EDA").
RECITALS:
A. Unless otherwise defined herein, all capitalized terms used in this First
Amendment shall have the same meanings as defined in the Business Subsidy Agreement, as
defined herein.
B. IMH and the City entered into that certain business subsidy agreement dated July
10, 2014, ("Business Subsidy Agreement Agreement"), incorporated herein by reference.
C. The subsidy consisted of the Loan provided by the EDA to IMH.
D. The Loan was evidenced by the Note dated July 10, 2014.
E. If IMH met the construction and job -creation Goals for the Phase I
Improvements/Gabella Property and no event of default existed at the time such Goals were met,
section 5.1 of the Business Subsidy Agreement required the EDA to forgive the principal amount
of the Loan and all related interest for funds disbursed pursuant to Section 3.1(a) and (b) of the
Business Subsidy Agreement.
F. IMH met the construction and job -creation Goals for the Phase I
Improvements/Gabella Property.
G. No event of default existed at the time such Goals were met.
H. The principal amount and all related interest on the Loan for funds advanced
under the Note disbursed pursuant to Section 3.1(a) and (b) of the Business Subsidy Agreement
is $762,238.72.
I. IMH requested that the EDA forgive $762,238.72, as well as any and all accrued
interest, of the obligation under the Note, as evidenced by the Note, as required by section 5.1 of
the Business Subsidy Agreement, which request is agreeable to the City upon the following
terms and conditions.
AGREEMENT:
NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein, and for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, IMH and the EDA hereto covenant and agree as follows:
1. The above -stated Recitals are true and correct and are incorporated herein by
reference and made a part hereof.
2. The EDA hereby forgives
the obligation under the Note.
762,23 8.72, as well as any and all accrued interest, of
3. Except as otherwise amended or altered herein, all terms of the Business Subsidy
Agreement, the Loan, and the Note remain valid and enforceable.
4. ARTICLE 1, Definitions, Section 1.1, Definitions, is amended to include the
following definition:
"Amended Note" means the Amended and Restated Promissory Note of even date
herewith.
"Loan" means the funds disbursed by the EDA to Recipient in relation to the
Improvements in an amount not to exceed Three Hundred Sixty Nine Thousand
Eighty Three and 00/100ths Dollars ($369,083.28).
5. ARTICLE 4, Loan Terms and Conditions, is hereby deleted in its entirety and
replaced with the following:
Section 4.1. Basic Terms. Subject to Article 5 of this Agreement, the principal amount of the
Loan shall be equal to the P & I disbursed to the Recipient. The Loan shall bear interest at a
rate of six percent (6%) per annum, and interest shall commence to accrue as of each
disbursement date and continue until satisfied or paid in full. The Loan shall be evidenced
by the Note and Amended Note, the terms of which are incorporated fully herein by
reference.
Section 4.2. Repayment. If the Recipient does not pull a building permit for the Galante
Property by April 30, 2017, or fails to complete construction of the Phase II
Improvements and obtain a certificate of occupancy for the Galante Property by
December 31, 2018, the Amended Note, including principal and interest, must be repaid
on or before December 31, 2019.
Section 4.3. Termination of Article 4 of this Agreement. If the Loan is fully forgiven
pursuant to Section 5.1(b) of this Agreement, the provisions of Sections 4.1 and 4.2 of this
Agreement shall terminate with the remainder of this Agreement remaining in full force and
effect.
-2
6. ARTICLE 9, Miscellaneous Provisions, Section 9.4, Notices and Demands, is
hereby amended as follows:
(a) As to the EDA: Apple Valley Municipal Center
7100 147th St. W
Apple Valley, Minnesota 55124
Attn: Thomas Lawell, Executive Director
with copy to:
Dougherty, Molenda, Solfest Hills & Bauer P.A.
14985 Glazier Avenue, Suite 525
Apple Valley, Minnesota 55124
Attn: Michael G. Dougherty
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
made effective as of the day and year first above written.
APPLE VALLEY ECONOMIC
DEVELOPMENT AUTHORITY
a public body corporate and a political
subdivision of the State of Minnesota.
a Minnesota Corporation
By:
Tom Goodwin
Its: President
By:
Pamela J. Gackstetter
Its: Secretary
-3
IMH SPECIAL ASSET NT 175 -AVN,
LLC
an Arizona limited liability company
By: IMH Financial Corporation
A Delaware corporation
Its: Sole member
By:
Lawrence D. Bain
Its: Chief Financial Officer
4
, 2016
AMENDED AND RESTATED PROMISSORY NOTE
IMH Special Asset NT 175 — AVN, LLC, an Arizona limited liability company (the
"Maker"), for value received, hereby promises to pay to the Apple Valley Economic
Development Authority, a public body corporate and a political subdivision of the State of
Minnesota (the "EDA"), or its assigns (the EDA and any assigns are hereinafter referred to as the
"Holder"), at its designated principal office or such other place as the Holder may designate in
writing, the principal sum of Three Hundred Sixty Nine Thousand Eighty Three and 00/ 100ths
Dollars ($369,083.28) or so much thereof as may be advanced under this Amended Note, with
interest as hereinafter provided. The principal of this Amended Note is payable as follows:
1. The principal shall bear interest at a rate of six percent (6%) per annum and
interest shall commence to accrue as of each disbursement date.
2. Any outstanding principal and interest is due and payable on or before December
31, 2019, pursuant to the terms of the Loan Agreement.
3. This Amended Note is given pursuant to the Business Subsidy Agreement entered
into by the Maker and the EDA on July 10, 2014, and the First Amendment to the Business
Subsidy Agreement entered into of even date herewith (collectively "Loan Agreement").
All of the agreements, conditions, covenants, provisions, and stipulations contained in the
Loan Agreement, or any instrument securing this Amended Note are hereby made a part of this
Amended Note to the same extent and with the same force and effect as if they were fully set
forth herein, including the forgiveness provisions contained in Article 5 of the Loan Agreement.
It is agreed that time is of the essence for this Amended Note. If a default occurs under the Loan
Agreement, or any instrument securing this Amended Note, then the Holder of this Amended
Note may at its right and option, without notice, declare immediately due and payable the
principal balance of this Amended Note, together with any costs of collection including attorney
fees incurred by the Holder of this Amended Note in collecting or enforcing payment hereof,
whether suit be brought or not, and all other sums due hereunder, or under any instrument
securing this Amended Note. The Maker agrees that the Holder of this Amended Note may,
without notice to the Maker of this Amended Note and without affecting the liability of the
Maker of this Amended Note, accept additional or substitute security for this Amended Note, or
release any security or any party liable for this Amended Note or extend or renew this Amended
Note.
4. The remedies of the Holder of this Amended Note as provided herein, and in the
Loan Agreement, or any other instrument securing this Amended Note, shall be cumulative and
concurrent and may be pursued singly, successively or together and, at the sole discretion of the
Holder of this Amended Note, may be exercised as often as occasion therefore shall occur; and
the failure to exercise any such right or remedy shall in no event be construed as a waiver or
release thereof.
The Holder of this Amended Note shall not be deemed, by any act of omission or
commission, to have waived any of its rights or remedies hereunder unless such waiver is in
writing and signed by the Holder of this Amended Note and then only to the extent specifically
set forth in the writing. A waiver with reference to one event shall not be construed as
continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This
Amended Note may not be amended, modified, or changed except only by an instrument in
writing signed by the party against whom enforcement of any such amendment, modifications, or
change is sought.
5. This Amended Note shall be governed by and construed in accordance with the
laws of the state of Minnesota without regard to its conflict of laws. Any disputes, controversies,
or claims arising out of this Amended Note shall be heard in the state or federal courts of
Minnesota, and all parties to this Amended Note waive any objection to the jurisdiction of these
courts, whether based on convenience or otherwise.
6. This Amended Note, with the Loan Agreement, constitutes the entire Amended
Note between the parties pertaining to its subject matter and it supersedes all prior
contemporaneous Notes, representations, and understandings of the parties pertaining to the
subject matter of this Amended Note.
7. Wherever possible, each provision of this Amended Note and each related
document shall be interpreted so that it is valid under applicable law. If any provision of this
Amended Note or any related document is to any extent found invalid by a court or other
governmental entity of competent jurisdiction, that provision shall be ineffective only to the
extent of such invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Amended Note or any other related document.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things
required to exist, happen, and be performed precedent to or in the issuance of this Amended Note
do exist, have happened, and have been performed in regular and due form as required by law.
IN WITNESS WHEREOF, the Maker has caused this Amended Note to be duly
executed as of the day first written above.
IMH SPECIAL ASSET NT 175 —AVN, LLC
By:
Its:
By:
Its:
2
E
I
V
FO • OF P
No. R-1
IT B-1
SE 1 TIF NOTE
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT REVENUE NOTE
(GABELLA PROJECT)
The Apple Valley Economic Development Authority, Minnesota the "Authority"),
hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the
amounts hereinafter described (the "Payment Amounts") to IMH Special Asset NT 175 -AVN,
LLC, or its registered assigns (the "Registered Owner"), but only in the manner, at the times,
from the sources of revenue, and to the extent hereinafter provided.
The principal amount of this Note shall equal from time to time the principal amount
stated above, as reduced to the extent that such principal installments shall have been paid in
whole or in part pursuant to the terms hereof; provided that the sum of the principal amount
listed above shall in no event exceed $2,684,000 as provided in that certain Amended and
Restated Development Assistance Agreement, dated as of July 1, 2014, as the same may be
amended from time to time (the "Development Assistance Agreement"), by and between the
Authority, the City of Apple Valley, Minnesota, and IMH Special Asset NT 175 -AVN, LLC
The unpaid principal amount of the Note shall bear simple, non -compounding interest from the
date of issuance of the Note at 5.0% per annum. Interest shall be computed on the basis of a 360
day year consisting of twelve (12) 30 -day months.
The amounts due under this Note shall be payable on August 1, 2017, and on each
August 1 and February 1 thereafter to and including February 1, 2042 (as determined in
accordance with the Development Assistance Agreement), or, if the first should not be a
Business Day (as defined in the Development Assistance Agreement) the next succeeding
Business Day (the "Payment Dates"). On each Payment Date the Authority shall pay by check
or draft mailed to the person whom was the Registered Owner of this Note at the close of the last
business day preceding such Payment Date an amount equal to the sum of the Tax Increments
(hereinafter defined) received by the Authority during the six month period preceding such
Payment Date. All payments made by the Authority under this Note shall first be applied to
accrued interest and then to principal.
The Payment Amounts due hereon shall be payable solely from 70% of the tax
increments (the "Tax Increments") from the Development Property (as defined in the
Development Assistance Agreement) within the Authority's Tax Increment Financing District
Tax Increment Financing District No. 15 (the "Tax Increment Dishier) within its Master
Development District which are paid to the Authority and which the Authority is entitled to
B-1-1
6327790v3
retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as
the same may be amended or supplemented from time to time (the "Tax Increment Act").
Notwithstanding the foregoing, the Tax Increments shall be applied pro rata to this Note and the
Tax Increment Note if issued for the Galante Project as set forth in the Development Assistance
Agreement. This Note shall terminate and be of no further force and effect following: (i) the last
Payment Date defined above, (ii) on any date upon which the Authority shall have terminated the
Development Assistance Agreement under Section 9.2(3) thereof; (iii) on the date the Tax
increment District is terminated; or (iv) on the date that all principal and interest payable
hereunder shall have been paid in full, whichever occurs earliest,
The Authority makes no representation or covenant, expressed or implied, that the Tax
Increments will be sufficient to pay, in whole or in part, the amounts which are or may become
due and payable hereunder.
The Authority's payment obligations hereunder shall be further conditioned on the fact
that no Event of Default under the Development Assistance Agreement shall have occurred and
be continuing at the time payment is due hereunder, but subject to the terms and conditions under
the Development Assistance Agreement such unpaid amounts may become payable, without
interest accruing thereon in the meantime, if said Event of Default shall thereafter have been
timely cured; and, further, if pursuant to the occurrence of an Event of Default under the
Development Assistance Agreement the Authority elects to cancel and rescind the Development
Assistance Agreement, the Authority shall have no further debt or obligation under this Note
whatsoever. Reference is hereby made to all of the provisions of the Development Assistance
Agreement, and said provisions are hereby incorporated into this Note as though set out in full
herein.
This Note is a special, limited revenue obligation and not a general obligation of the
Authority and is payable by the Authority only from the sources and subject to the qualifications
stated or referenced herein. This Note is not a general obligation of the Authority and neither the
full faith and credit nor the taxing powers of the Authority are pledged to the payment of the
principal of this Note and no property or other asset of the Authority, save and except the above -
referenced Tax Increments, is or shall be a source of payment of the Authority's obligations
hereunder.
This Note is issued by the Authority in aid of financing a project pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota, including the Tax
Increment Act.
This Note may be assigned only with the consent of the Authority which consents shall
not be unreasonably withheld. In order to assign the Note, the assignee shall surrender the same
to the Authority either in exchange for a new fully registered note or for transfer of this Note on
the registration records for the Note maintained by the Authority. Bach permitted assignee shall
take this Note subject to the foregoing conditions and subject to all provisions stated or
referenced herein.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to have happened,
B-1-2
6327790v3
and to be performed precedent to and in the issuance of this Note have been done, have
happened, and have been performed in regular and due form, time, and manner as required by
law; and that this Note, together with all other indebtedness of the Authority outstanding on the
date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of
the Authority to exceed any constitutional, statutory or charter limitation thereon.
IN WITNESS WHEREOF, Apple Valley Economic Development Authority, Minnesota,
by its Board of Commissioners, has caused this Note to be executed by the manual signatures of
its President and Secretary and has caused this Note to be dated as of , 20 .
President Secretary
B-1-3
6327790v3
CERTIFICATION OF REGISTRATION
It is hereby certified that the foregoing Note, as originally issued on
20 was on said date registered in the name of IM1-1 Special Asset NT 175 -AVN, LLC, and
that, at the request of the Registered Owner of this Note, the undersigned has this day registered
the Note in the name of such Registered Owner, as indicated in the registration blank below, on
the books kept by the undersigned for such purposes.
NAME AND ADDRESS OF DATE OF SIGNATURE OF
REGISTERED OWNERS REGISTRATION EDA SECRETARY
IMH Special Asset NT 175 -AVN,
LLC
7001 N. Scottsdale Road, #2050
Scottsdale, AZ 58253
6327790v3
20
, 20
, 20
,
20
B-1-4
City of Applen
Valley
b A
1tptkez11
MEMO
Finance Department
TO: President, Economic Development Authority Commissioners, and
Tom Lawell, Executive Director
FROM: Ron Hedberg, Finance Director
DATE: September 21, 2016
SUBJECT: Additional information for Action Items related to Parkside Gabella Project
• Copy of Tax Increment Revenue Note (Parkside Gabella Project)
• Updated Resolution Partially Forgiving Repayment of Business Subsidy
and related Promissory Note.
Introduction
Additional info- TIF Note
The original packet that was distributed did not include a separate copy of the TIF note to be
acted on, it was included as exhibit B-1 to the Development Agreement that was distributed with
the City Council packet.
Additional info- Updated Resolution Partially Forgiving Repayment of Business Subsidy
A correction was made to the amounts included in the Resolution Partially Forgiving Repayment
of Business Subsidy which will also change the amount included in the Promissory Note that
IMH will be executing along with the First Amendment to Business Subsidy Agreement.
E
a
1 tr
FO OF P
No. R-1
1
1
IT B-1
SE 1 TIF NOTE
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT REVENUE NOTE
(GABELLA PROJECT)
The Apple Valley Economic Development Authority, Minnesota (the "Authority"),
hereby acknowledges itself to be indebted and, for value received, hereby promises to pay the
amounts hereinafter described (the "Payment Amounts") to IMH Special Asset NT 175 -AVN,
LLC, or its registered assigns (the "Registered Owner"), but only in the manner, at the times,
from the sources of revenue, and to the extent hereinafter provided.
The principal amount of this Note shall equal from time to time the principal amount
stated above, as reduced to the extent that such principal installments shall have been paid in
whole or in part pursuant to the terms hereof; provided that the sum of the principal amount
listed above shall in no event exceed $2,684,000 as provided in that certain Amended and
Restated Development Assistance Agreement, dated as of July 1, 2014, as the same may be
amended from time to time (the "Development Assistance Agreement"), by and between the
Authority, the City of Apple Valley, Minnesota, and IMH Special Asset NT 175 -AVN, LLC
The unpaid principal amount of the Note shall bear simple, non -compounding interest from the
date of issuance of the Note at 5.0% per annum. Interest shall be computed on the basis of a 360
day year consisting of twelve (12) 30 -day months.
The amounts due under this Note shall be payable on August 1, 2017, and on each
August 1 and February 1 thereafter to and including February 1, 2042 (as determined in
accordance with the Development Assistance Agreement), or, if the first should not be a
Business Day (as defined in the Development Assistance Agreement) the next succeeding
Business Day (the "Payment Dates"). On each Payment Date the Authority shall pay by check
or draft mailed to the person whom was the Registered Owner of this Note at the close of the last
business day preceding such Payment Date an amount equal to the sum of the Tax Increments
(hereinafter defined) received by the Authority during the six month period preceding such
Payment Date. All payments made by the Authority under this Note shall first be applied to
accrued interest and then to principal.
The Payment Amounts due hereon shall be payable solely from 70% of the tax
increments (the "Tax Increments") from the Development Property (as defined in the
Development Assistance Agreement) within the Authority's Tax Increment Financing District
Tax Increment Financing District No. 15 (the "Tax Increment District") within its Master
Development District which are paid to the Authority and which the Authority is entitled to
B-1-1
6327790v3
retain pursuant to the provisions of Minnesota Statutes, Sections 469.174 through 469.1794, as
the same may be amended or supplemented from time to time (the "Tax Increment Act").
Notwithstanding the foregoing, the Tax Increments shall be applied pro rata to this Note and the
Tax Increment Note if issued for the Galante Project as set forth in the Development Assistance
Agreement. This Note shall terminate and be of no further force and effect following: (i) the last
Payment Date defined above, (ii) on any date upon which the Authority shall have terminated the
Development Assistance Agreement under Section 9.2(3) thereof; (iii) on the date the Tax
increment District is terminated; or (iv) on the date that all principal and interest payable
hereunder shall have been paid in full, whichever occurs earliest,
The Authority makes no representation or covenant, expressed or implied, that the Tax
Increments will be sufficient to pay, in whole or in part, the amounts which are or may become
due and payable hereunder.
The Authority's payment obligations hereunder shall be further conditioned on the fact
that no Event of Default under the Development Assistance Agreement shall have occurred and
be continuing at the time payment is due hereunder, but subject to the terms and conditions under
the Development Assistance Agreement such unpaid amounts may become payable, without
interest accruing thereon in the meantime, if said Event of Default shall thereafter have been
timely cured; and, further, if pursuant to the occurrence of an Event of Default under the
Development Assistance Agreement the Authority elects to cancel and rescind the Development
Assistance Agreement, the Authority shall have no further debt or obligation under this Note
whatsoever. Reference is hereby made to all of the provisions of the Development Assistance
Agreement, and said provisions are hereby incorporated into this Note as though set out in full
herein.
This Note is a special, limited revenue obligation and not a general obligation of the
Authority and is payable by the Authority only from the sources and subject to the qualifications
stated or referenced herein. This Note is not a general obligation of the Authority and neither the
full faith and credit nor the taxing powers of the Authority are pledged to the payment of the
principal of this Note and no property or other asset of the Authority, save and except the above
referenced Tax Increments, is or shall be a source of payment of the Authority's obligations
hereunder.
This Note is issued by the Authority in aid of financing a project pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota, including the Tax
Increment Act.
This Note may be assigned only with the consent of the Authority which consents shall
not be unreasonably withheld. In order to assign the Note, the assignee shall surrender the same
to the Authority either in exchange for a new fully registered note or for transfer of this Note on
the registration records for the Note maintained by the Authority. Each permitted assignee shall
take this Note subject to the foregoing conditions and subject to all provisions stated or
referenced herein.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to have happened,
B-1-2
6327790v3
and to be performed precedent to and in the issuance of this Note have been done, have
happened, and have been performed in regular and due form, time, and manner as required by
law; and that this Note, together with all other indebtedness of the Authority outstanding on the
date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of
the Authority to exceed any constitutional, statutory or charter limitation thereon.
IN WITNESS WHEREOF, Apple Valley Economic Development Authority, Minnesota,
by its Board of Commissioners, has caused this Note to be executed by the manual signatures of
its President and Secretary and has caused this Note to be dated as of , 20.
President Secretary
B- 1 -3
6327790v3
CERTIFICATION OF REGIST TION
It is hereby certified that the foregoing Note, as originally issued on
20 was on said date registered in the name of IMH Special Asset NT 175 -AVN, LLC, and
that, at the request of the Registered Owner of this Note, the undersigned has this day registered
the Note in the name of such Registered Owner, as indicated in the registration blank below, on
the books kept by the undersigned for such purposes.
NAME AND ADDRESS OF DATE OF SIGNATURE OF
REGISTERED OWNERS REGISTRATION EDA SECRETARY
IME Special Asset NT 175 -AVN,
LLC
7001 N. Scottsdale Road, #2050
Scottsdale, AZ 58253
6327790v3
, 20
, 20
, 20
, 20
B-1-4
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA -16-
A RESOLUTION PARTIALLY FORGIVING REPAYMENT OF BUSINESS SUBISDY
WHEREAS, pursuant to the Minnesota Business Subsidy Act, set forth in Minnesota
Statutes, Sections 116J.993 to 1161995, the Apple Valley Economic Development Authority
("EDA") granted a business subsidy to IMH Special Asset NT 175 -AVN, LLC ("IMH"); and
WHEREAS, the terms of the EDA's agreement with IMH are set forth in the Business
Subsidy Agreement, dated July 10, 2014 ("Agreement"); and
WHEREAS, the EDA has advanced $762,283.72 to IMH pursuant to the Agreement and in
accordance with the Promissory Note executed by IMH on July 10, 2014; and
WHEREAS, IMH certified that it has met the job and wage goals set forth in Section 2.5 of
the Agreement, as related solely to the Phase 1 Improvements, as defined in the Agreement; and
WHEREAS, no Event of Default, as set forth in Section 7.1 of the Agreement, currently
exists; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the EDA
that it hereby forgives any obligation by IMH to repay the $762,283.72, including any and all
interest accrued thereon, in accordance with Section 5.1(a) of the Agreement, on the condition that
IMH execute the First Amendment to Business Subsidy Agreement and the Amended Restated
Promissory Note (forms of which are attached hereto).
ADOPTED this 22nd day of September, 2016.
Tom Goodwin, President
ATTEST:
Pamela J. Gackstetter, Secretary
FIRST AMENDMENT TO BUSINESS SUBSIDY AGREEMENT
THIS FIRST AMENDMENT TO BUSINESS SUBSIDY AGREEMENT ("First
Amendment") is made this day of , 2016, by and between IMH Special Asset
NT 175 — AVN, LLC, an Arizona limited liability company, ("IMH") and Apple Valley
Economic Development Authority, a public body corporate and political subdivision of the State
of Minnesota ("EDA").
RECITALS:
A. Unless otherwise defined herein, all capitalized terms used in this First
Amendment shall have the same meanings as defined in the Business Subsidy Agreement, as
defined herein.
B. IMH and the City entered into that certain business subsidy agreement dated July
10, 2014, ("Business Subsidy Agreement Agreement"), incorporated herein by reference.
C. The subsidy consisted of the Loan provided by the EDA to IMH.
D. The Loan was evidenced by the Note dated July 10, 2014.
E. If IMH met the construction and job -creation Goals for the Phase I
Improvements/tabella Property and no event of default existed at the time such Goals were met,
section 5.1 of the Business Subsidy Agreement required the EDA to forgive the principal amount
of the Loan and all related interest for funds disbursed pursuant to Section 3.1(a) and (b) of the
Business Subsidy Agreement.
F. IMH met the construction and job -creation Goals for the Phase I
Improvements/Gabella Property.
G. No event of default existed at the time such Goals were met.
H. The principal amount and all related interest on the Loan for funds advanced
under the Note disbursed pursuant to Section 3.1(a) and (b) of the Business Subsidy Agreement
is $762,283.72.
I. IMH requested that the EDA forgive $762,283.72, as well as any and all accrued
interest, of the obligation under the Note, as evidenced by the Note, as required by section 5.1 of
the Business Subsidy Agreement, which request is agreeable to the City upon the following
terms and conditions.
AGREEMENT:
NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein, and for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, IMH and the EDA hereto covenant and agree as follows:
1. The above -stated Recitals are true and correct and are incorporated herein by
reference and made a part hereof.
2. The EDA hereby forgives $762,283.72, as well as any and all accrued interest, of
the obligation under the Note.
3. Except as otherwise amended or altered herein, all ten -ns of the Business Subsidy
Agreement, the Loan, and the Note remain valid and enforceable.
4. ARTICLE 1, Definitions, Section 1.1, Definitions, is amended to include the
following definition:
"Amended Note" means the Amended and Restated Promissory Note of even date
herewith.
"Loan" means the funds disbursed by the EDA to Recipient in relation to the
Improvements in an amount not to exceed Three Hundred Sixty Nine Thousand
Thirty-eight and 00/ 100ths Dollars ($369,038.28).
5. ARTICLE 4, Loan Terms and Conditions, is hereby deleted in its entirety and
replaced with the following:
Section 4.1. Basic Terms. Subject to Article 5 of this Agreement, the principal amount of the
Loan shall be equal to the P & I disbursed to the Recipient. The Loan shall bear interest at a
rate of six percent (6%) per annum, and interest shall commence to accrue as of each
disbursement date and continue until satisfied or paid in full. The Loan shall be evidenced
by the Note and Amended Note, the terms of which are incorporated fully herein by
reference.
Section 4.2. Repayment. If the Recipient does not pull a building permit for the Galante
Property by April 30, 2017, or fails to complete construction of the Phase II
Improvements and obtain a certificate of occupancy for the Galante Property by
December 31, 2018, the Amended Note, including principal and interest, must be repaid
on or before December 31, 2019.
Section 4.3. Termination of Article 4 of this Agreement. If the Loan is fully forgiven
pursuant to Section 5.1(b) of this Agreement, the provisions of Sections 4.1 and 4.2 of this
Agreement shall terminate with the remainder of this Agreement remaining in full force and
effect.
2
6. ARTICLE 9, Miscellaneous Provisions, Section 9.4, Notices and Demands, is
hereby amended as follows:
(a) As to the EDA: Apple Valley Municipal Center
7100 147th St. W
Apple Valley, Minnesota 55124
Attn: Thomas Lawell, Executive Director
with copy to:
Dougherty, Molenda, Solfest Hills & Bauer P.A.
14985 Glazier Avenue, Suite 525
Apple Valley, Minnesota 55124
Attn: Michael G. Dougherty
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
made effective as of the day and year first above written.
APPLE VALLEY ECONOMIC
DEVELOPMENT AUTHORITY
a public body corporate and a political
subdivision of the State of Minnesota.
a Minnesota Corporation
By:
Tom Goodwin
Its: President
By:
Pamela J. Gackstetter
Its: Secretary
3
IMH SPECIAL ASSET NT 175 -AVN,
LLC
an Arizona limited liability company
By: IMH Financial Corporation
A Delaware corporation
Its: Sole member
By:
Lawrence D. Bain
Its: Chief Financial Officer
4
, 2016
AMENDED AND RESTATED PROMISSORY NOTE
IMH Special Asset NT 175 — AVN, LLC, an Arizona limited liability company (the
"Maker"), for value received, hereby promises to pay to the Apple Valley Economic
Development Authority, a public body corporate and a political subdivision of the State of
Minnesota (the "EDA"), or its assigns (the EDA and any assigns are hereinafter referred to as the
"Holder"), at its designated principal office or such other place as the Holder may designate in
writing, the principal sum of Three Hundred Sixty Nine Thousand Thirty-eight and 00/ l 00ths
Dollars ($369,038.28) or so much thereof as may be advanced under this Amended Note, with
interest as hereinafter provided. The principal of this Amended Note is payable as follows:
1. The principal shall bear interest at a rate of six percent (6%) per annum and
interest shall commence to accrue as of each disbursement date.
2. Any outstanding principal and interest is due and payable on or before December
31, 2019, pursuant to the terms of the Loan Agreement.
3. This Amended Note is given pursuant to the Business Subsidy Agreement entered
into by the Maker and the EDA on July 10, 2014, and the First Amendment to the Business
Subsidy Agreement entered into of even date herewith (collectively "Loan Agreement").
All of the agreements, conditions, covenants, provisions, and stipulations contained in the
Loan Agreement, or any instrument securing this Amended Note are hereby made a part of this
Amended Note to the same extent and with the same force and effect as if they were fully set
forth herein, including the forgiveness provisions contained in Article 5 of the Loan Agreement.
It is agreed that time is of the essence for this Amended Note. If a default occurs under the Loan
Agreement, or any instrument securing this Amended Note, then the Holder of this Amended
Note may at its right and option, without notice, declare immediately due and payable the
principal balance of this Amended Note, together with any costs of collection including attorney
fees incurred by the Holder of this Amended Note in collecting or enforcing payment hereof,
whether suit be brought or not, and all other sums due hereunder, or under any instrument
securing this Amended Note. The Maker agrees that the Holder of this Amended Note may,
without notice to the Maker of this Amended Note and without affecting the liability of the
Maker of this Amended Note, accept additional or substitute security for this Amended Note, or
release any security or any party liable for this Amended Note or extend or renew this Amended
Note.
4. The remedies of the Holder of this Amended Note as provided herein, and in the
Loan Agreement, or any other instrument securing this Amended Note, shall be cumulative and
concurrent and may be pursued singly, successively or together and, at the sole discretion of the
Holder of this Amended Note, may be exercised as often as occasion therefore shall occur; and
the failure to exercise any such right or remedy shall in no event be construed as a waiver or
release thereof.
The Holder of this Amended Note shall not be deemed, by any act of omission or
commission, to have waived any of its rights or remedies hereunder unless such waiver is in
writing and signed by the Holder of this Amended Note and then only to the extent specifically
set forth in the writing. A waiver with reference to one event shall not be construed as
continuing or as a bar to or waiver of any right or remedy as to a subsequent event. This
Amended Note may not be amended, modified, or changed except only by an instrument in
writing signed by the party against whom enforcement of any such amendment, modifications, or
change is sought.
5. This Amended Note shall be governed by and construed in accordance with the
laws of the state of Minnesota without regard to its conflict of laws. Any disputes, controversies,
or claims arising out of this Amended Note shall be heard in the state or federal courts of
Minnesota, and all parties to this Amended Note waive any objection to the jurisdiction of these
courts, whether based on convenience or otherwise.
6. This Amended Note, with the Loan Agreement, constitutes the entire Amended
Note between the parties pertaining to its subject matter and it supersedes all prior
contemporaneous Notes, representations, and understandings of the parties pertaining to the
subject matter of this Amended Note.
7. Wherever possible, each provision of this Amended Note and each related
document shall be interpreted so that it is valid under applicable law. If any provision of this
Amended Note or any related document is to any extent found invalid by a court or other
governmental entity of competent jurisdiction, that provision shall be ineffective only to the
extent of such invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Amended Note or any other related document.
IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts, and things
required to exist, happen, and be performed precedent to or in the issuance of this Amended Note
do exist, have happened, and have been performed in regular and due form as required by law.
IN WITNESS WHEREOF, the Maker has caused this Amended Note to be duly
executed as of the day first written above.
IMH SPECIAL ASSET NT 175 —AVN, LLC
By:
Its:
By:
Its:
2
%rev
10060
*CO 66
*COO
City of Apple
Valley
E4 C
MEMO
Finance Department
TO: President, Economic Development Authority Commissioners, and
Tom Lawell, Executive Director
FROM: Ron Hedberg, Finance Director
Bruce Nordquist, Community Development Director
DATE: September 14, 2016
SUBJECT: Adopt 2017 Economic Development Operations Fund Budget
The proposed 2017 budget, approved by the City Council in the preliminary budget, includes the
Economic Development Operations Fund. The items included in the proposed budget are the
anticipated activities. If the need arises to address development opportunities, Business
Retention, Expansion and Attraction (BREA) activities, further action would be requested to
address the need. Enclosed are the pages from the budget document that relate to this fund and its
use by the EDA.
The activity areas in 2017 include:
• Complete 2016 construction of the Central Village parking lot. A County grant in the
amount of $83,396 is applied to project costs.
• Continue as a member of GREATER MSP, the regional economic development
organization with national and global contacts for local business development.
• Continue the "Open to Business" small business development service with the Dakota
County CDA and Metropolitan Consortium of Community Developers.
• Begin the master planning of the Mixed Business Campus (MBC) with the identified
developer.
• Facilitate repositioning of properties within the quadrants of County Road 42 and Cedar
Avenue.
• Manage City/EDA owned property until development.
The projected 2017 year end fund balance is $103,780.
Recommended Action:
Resolution Adopting 2017 Proposed Budget for the EDA
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA 16 -
RESOLUTION ADOPTING 2017 PROPOSED BUDGET
WHEREAS, the Apple Valley Economic Development Authority has reviewed the
proposed 2017 operating budget set forth in this resolution; and
WHEREAS, the Economic Development Authority desires to adopt an operating budget for
management purposes; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Apple
Valley Economic Development Authority, Minnesota that revenue and expenditure budgets
for 2017 shall be as included below in this resolution and as supported by the detailed
document, as revised.
2017
Revenues:
Investment Earnings 1,860
Expenditures:
Consultant Services 7,500
Schools/Conferences/Exp 16,500
Subsistence Allowance 2,100
Dues & Subscriptions 11,850
Total Expenditures $37,950
ADOPTED this 22nd day of September, 2016 by the Apple Valley Economic Development
Authority Board of Commissioners
Thomas Goodwin, President
ATTEST:
Pamela J. Gackstetter, Secretary
COMPANY DEPARTMENT BUSINESS UNIT ACTIVITY
1000 93 3210 EDA Operations Fund
DESCRIPTION OF ACTIVITY
The EDA Operations fund was created many years ago and focused on the activities
related to the Valley Business Park development, including a revolving loan program
and the development and sale of commercial lots. That activity was completed and the
EDA Operations fund assists the EDA in supporting business development opportunities
as they arise.
MAJOR OBJECTIVES FOR 2017
• Complete construction of the Central Village parking lot. A County grant in the
amount of $83,396 is applied to project costs.
• Continue as a member of GREATER MSP, the regional economic development
organization with national and global contacts for local business development.
• Continue the "Open to Business" small business development service with the
Dakota County CDA and Metropolitan Consortium of Community Developers.
• Begin the master planning of the Mixed Business Campus (MBC) with the
identified developer.
• Facilitate repositioning of properties within the quadrants of CR42 and Cedar
Avenue.
• Manage City/EDA owned property until development.
IMPACT MEASURES / PERFORMANCE INDICATORS
Actual Actual Actual Projected Projected Projected
Item 2013 2014 2015 2016 2017 2018
Jobs added (perm. and const.) x x 400 500 500 500
Open to Bus./AV Clients Served x x 22 25 25 25
Summary Budget
Department 93 EDA Operations Fund
2013 2014 2015 2016 2016 2017 2018
Actual Actual Actual Adopted Projected Proposed Proposed
Revenue:
County Grant
Redistribution of TIF 334,465 11
Investment Earnings (17,328) 24,888 16,734 2,100 6,000 1,860 975
(17,328) 359,353 16,745 2,100 89,396 1,860 975
83,396
Expenditures:
Salaries & Wages 110 560
Contractual Serv. 7,500 7,500 32,320 16,400 7,500 7,500 7,500
Training/Travel/Dues 10,000 11,388 10,592 30,100 11,675 30,450 30,450
Consultant Services/Other 141 794 800,000
Capital outlay - 356,220
Net addition to Fund 17,641 19,792 43,472 46,500 1,175,395 37,950 37,950
Balance
Fund Balance
Beginning
Ending
948,004 913,035 1,252,596 1,225,869 1,225,869 139,870 103,780
913,035 1,252,596 1,225,869 1,181,469 139,870 103,780 66,805
2017 CAPITAL OUTLAY None
CITY OF APPLE VALLEY
2017 BUDGET
ACCOUNT DETAIL
DEPT 93: EDA OPERATIONS FUND -3212
COMPANY 3210: EDA OPERATIONS
ACC'T
DESCRIPTION
2014
COUNCIL
ADOPTED
2015
COUNCIL
ADOPTED
2016
DEPT
PROP
2016
YEAR END
PROJECTED
2017
DEPT
PROP
2017 2018
ADMIN COUNCIL
RECOMMEND ADOPTED
2018
DEPT
6235 CONSULTANT SERVICES
Miscellaneous - MCCD
Ordinance/MB Campus
Downtown Plan (CDA Match)
Financial Advisor fees
Total
7,500
40,000
7,500
40,000
7,500
7,500
7,500
7,500
7,500
7,500
47,500
47,500
7,500
7,500
7,500
7,500
7,500
7,500
6249 OTHER CONTRACTUAL SERVICES
Share of Broadband Access Study
Forgivable Loan - UPONOR
Total
8,900
800,000
-
-
8,900
800,000
-
-
-
-
6276 SCHOOL/CONF/EXP - OTHER
Economic Development-UPONOR
Nordic Business Development Trade
Mission (3 @ 5500)
Total-
16,500
16,500
16,500
16,500
16,500
16,500
16,500
16,500
-
16,500
16,500
16,500
16,500
6278 SUBSISTANCE ALLOWANCE
Economic Development-UPONOR
Nordic Business Development Trade
Mission (3 for 7 days @ $100)
Total
2,100
2,100
2,100
2,100
2,100
2,100
-
2,100
2,100
-
2,100
2,100
2,100
2,100
6280 DUES & SUBSCRIPTIONS
Membership in local chapters of nordic
Chambers of Commerce
Greater MSP
Total
10,000
10,000
1,500
10,000
1,500
10,175
1,500
10,350
1,500
10,350
1,500
10,350
1,500
10,350
10,000
10,000
11,500
11,675
11,850
11,850
11,850
11,850
6740 Capital Outlay
Central Village Parking Lot
Total-
356,220
-
-
356,220
-
-
-
-
Total Net of Personnel
TOTAL EXPENSES
57,500
$ 57,500
76,100
$ 76,100
46,500
$ 46,500
1,175,395
$ 1,175,395
37,950
$ 37,950
37,950
$ 37,950
37,950
$ 37,950
37,950
$ 37,950