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HomeMy WebLinkAbout07/23/1992 ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota July 23, 1992 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held July 23rd, 1992, at 8:00 o'clock p.m. at Apple Valley City Hall. PRESENT: President Holton; Commissioners Erickson, Goodwin, Humphrey and Sterling. ABSENT: None. City staff members present were: City Administrator Melena, City Clerk Mueller, City Attorney Sheldon, Administrative Intern Bail, Finance Director Ballenger, Personnel Director Boland, Public Works Director Gretz, Parks & Recreation Director Johnson, City Planner Kelley, Police Chief Rivers, Assistant to City Administrator Weldon, and Community Development Director Welsch. President Holton called the meeting to order at 9:35 p.m. MOTION: of Humphrey, seconded by Erickson, approving the minutes of JULY 9, 1992 the special meeting of July 9th, 1992, as written. Ayes - 4 MINUTES - Nays - 0 (Holton Abstained). Mr. Melena reviewed the objectives of the CDBG Revolving Loan Fund, NF PERKINS originally established with $250,000, to encourage new tax base, RLF APPLICATN. provide jobs, etc. Since there were no applications for funding, the program was reduced to $100,000 by transferring $150,000 into the housing rehabilitation loan program. There are now three applications to the Revolving Loan Fund for $50,000 each. The EDA does not actually approve the loans, it makes a determination as to whether the application meets the program guidelines. The HRA has the final approval authority. The application from NF Perkins & Associates, now being considered, is to assist in the acquisition of an office condominium at 7570 West 147th Street. Another application, previously submitted, was for construction of a new auto repair facility. The third application, being prepared but not yet submitted, is for construction of a new restaurant. Commissioner Goodwin asked why no one took advantage of the program when $250,000 was available? Mr. Melena said timing was a problem. Because of economic conditions, banks were not able to approve the loan applications. The Board reviewed the guidelines established for the program. Commissioner Humphrey asked if a "but for" test should be added; that is, can the business locate or expand without assistance? Mr. Melena said this analysis is required to be provided by a private lending institution and the HRA reviews it to determine compliance. Nancy Frost Perkins, the applicant, was present and said this analysis has been prepared. Her business cannot expand without additional office space and, based ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota July 23, 1992 Page 2 on the cost of expanding her current lease, the business cannot be expanded without relocating. MOTION: of Goodwin, seconded by Sterling, adopting Resolution No. RES. EDA-92-6 EDA-92-6 finding that the preapplication of NF Perkins & NF PERKINS Associates, Inc., for $50,000.00 of funding from the CDBG RLF APPLICATN. Revolving Loan Fund, to acquire commercial office property, is in compliance with City land use regulations and economic development goals previously stipulated. Councilmember Sterling asked what the length of the loan is? Mr. Melena said this portion is blended into the same term as the balance of the loan from a private lending institution. As the funds are repaid to the program, they can be applied to new loans. Wilton Anderson, 5441 West 134th Street, asked what the risk is to the City for such a loan? Mr. Melena said there is no direct risk. The funding is from the Federal Community Development Block Grant Program. No funds are paid out until a loan is made. When the loan is repaid, the funds are available to the EDA for other uses. The purpose of the program is to encourage economic development and the funds are not available to the City. There is no risk as a local taxpayer; the risk is as a Federal taxpayer. Vote was taken on the motion. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Erickson, adopting Resolution No. RES. EDA-92-7 EDA-92-7 approving the Development Assistance Agreement for A.V. FORD Apple Valley Ford Addition with Rydell Company for reimbur- DEV. ASSIST. Bement of certain costs, up to $798,000, from available tax AGREEMENT increments, and authorizing the President and Secretary to sign the same. Ayes - 4 - Nays - 0 (Humphrey Abstained). The Board reviewed the proposed Development Agreement with Minnesota AUTO MALL Auto Service Centers Partnership for additional parking facilities. DEV. AGREEMENT Mr. Melena said drawings for reconstructing the Auto Mall parking lot, due to loss of parking on 151st Street, were received today. A setback variance from County Road 42 is being requested. President Holton noted the Agreement states that all work would be done in compliance with City regulations and asked if this allows a variance. Mr. Kelley suggested adding language stating "unless otherwise approved by the City". Councilmember Sterling noted that there is no provision in the Agreement for repayment or special assessment of the funds. Mr. Melena said the Agreement has been prepared as a grant, with no repayment requirements, and is considered a trade-off for the street closing and allowing the adjoining major development. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota July 23, 1992 Page 3 MOTION: of Goodwin, seconded by Sterling, adopting Resolution No. RES. EDA-92-8 EDA-92-8 approving the Development Agreement with Minnesota AUTO MALL Auto Service Centers Partnership, d/b/a Auto Mall, for DEV. AGREEMENT reimbursement of actual costs, not to exceed $18,000.00, in reconstructing the parking lot on Lot 1, Block 1, Southport 4th Addition, and authorizing the President and Secretary to sign the same. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Erickson, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 10:03 o'clock p.m.