HomeMy WebLinkAbout09/09/1993 1110 ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
September 9, 1993
Minutes of the special meeting of the Economic Development Authority of Apple
Valley, Dakota County, Minnesota, held September 9th, 1993, at 7:00 o'clock p.m.
at Apple Valley City Hall.
PRESENT: President Branning; Commissioners Erickson, Goodwin, Humphrey and
Sterling.
ABSENT: None.
City staff members present were: Executive Director Melena, Secretary Mueller,
City Attorney Sheldon, Finance Director Ballenger, Community Development Director
Gretz and City Planner Kelley.
President Branning called the meeting to order at 7:00 p.m.
MOTION: of Erickson, seconded by Sterling, approving the agenda for APPROVE AGENDA
tonight's meeting as amended. Ayes - 5 - Nays - 0.
MOTION: of Erickson, seconded by Sterling, approving the minutes of AUG. 19, 1993
the special meeting of August 19th, 1993, as written. MINUTES
1110 Ayes - 4 - Nays - 0 (Goodwin Abstained).
The Board received a report dated September 7, 1993, listing business BUS. ASSIST.
rental assistance program agreements approved to date and costs of PROGRAM
those being submitted for consideration at this meeting. It was noted REPORT
that nearly all the funding in the expansion /retention portion of the
program has been encumbered. Commissioner Erickson said he would like to see the
dollars allocated to the incubator portion of the program remain for that purpose
rather than being shifted to expansion /retention or discretionary attraction.
MOTION: of Humphrey, seconded by Erickson, accepting the A.V. COUNSELG.
application, dated June 21, 1993, of Apple Valley Counseling BUSINESS ASST.
Clinic, P.A., for business incubator rental assistance APPLICATION
totaling approximately $13,610, over three years, for 997
square feet of space; and directing the Attorney to prepare
the necessary agreement.
Michael Bortel, the applicant, was present and described his Counseling Clinic
business and projected growth in 1995. Commissioner Erickson questioned why it
is classified as an incubator. It was noted that the definition of an incubator
is a business less than three years old. He questioned whether the intent of the
program is to subsidize a business that will be five years old by the time the
subsidy is used.
Commissioner Humphrey said he believes the intent of the program is to assist a
4110 business moving in or expanding. This business doesn't show expansion projected
until the third year.
Vote was taken on the motion. Ayes - 0 - Nays - 5. Motion Failed.
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley •
Dakota County, Minnesota
September 9, 1993
Page 2
MOTION: of Humphrey, seconded by Sterling, accepting the revised SUBURBAN TITLE
application, dated August 31, 1993, of Suburban Title, Inc., BUSINESS ASS ?,
for business retention /expansion rental assistance totaling APPLICATION -,
approximately $43,200, over three years, for 3,200 square
feet of space; and directing the Attorney to prepare the
necessary agreement.
Richard Lambert, of Suburban Title, was present and said he originally applied
for assistance to expand from 2,000 to 3,000 square feet of space. The
application was accepted with assistance for the 1,000 sc#uare -foot expansion. He
has been negotiating a lease totaling 3,200 square feet and would like the total
considered for assistance.
Commissioner Erickson questioned how to clarify the program to determine when
assistance will be provided for the entire space and when only the expansion
space will qualify. When a business expands at the same location, how can it be
determined whether it would expand naturally without assistance?
MOTION: of Humphrey, seconded by Sterling, amending the foregoing AMEND MOTTO1
motion by providing rental assistance up to $10,000 in year •
one, $10,000 in year two, and $5,000 in year three. Ayes -
5 - Nays - 0.
Vote was taken on the motion as amended. Ayes - 5 - Nays - 0.
Robert Bro, of AppliedGraphics, was present to describe his business APPLIEDGRAYMIC '
and reapplication for rental assistance. His application for incubator APPLICATION
assistance was previously approved, but he now needs more than the
1,500 square -foot maximum allowed under the incubator program.
MOTION: of Goodwin, seconded by Erickson, accepting the revised APPLIEDGRAPHIC
application, dated September 9, 1993, of AppliedGraphics BUSINESS ASST.
Limited Partnership for business discretionary attraction APPLICATIOI.
rental assistance totaling approximately $30,717, over three
years, for 2,370 square feet of space; and directing the
Attorney to prepare the necessary agreement. Ayes - 5 -
Nays - 0.
MOTION: of Erickson, seconded by Goodwin, approving the Agreement DONMAR TROPHY
with DonMar Trophies & Awards, Inc., for business incubator & AWARDS
rental assistance totaling $12,413.12, over three years, for AGREEMENT
1,250 square feet of space; and authorizing execution of
documents. Ayes - 5 - Nays - 0.
MOTION: of Goodwin, seconded by Sterling, approving the Agreement MESSAGE ON
with Michael D. Houy, d/b /a Message on Hold Network of HOLD NETWORIIII -
Minnesota, for business incubator rental assistance totaling AGREEMENT
$5,108.28, over three years, for 525 square feet of space;
and authorizing execution of documents. Ayes - 5 - Nays - 0.
ECONOMIC DEVELOPMENT AUTHORITY
• City of Apple Valley
Dakota County, Minnesota
September 9, 1993
Page 3
MOTION: of Sterling, seconded by Humphrey, approving the Agreement AMERICAN HTG.
with American Heating, Air - Conditioning & Refrigeration, A/C & REFRIG.
Inc., for business retention /expansion rental assistance AGREEMENT
totaling $14,083.06, over three years, for 2,240 square feet
of space; and authorizing execution of documents.
The Board asked for clarification on where the business was expanding before
voting on the motion.
Mr. Melena reviewed the revised estimate of costs for clean up of the MINNEHAHA
Minnehaha Falls Nursery site. Commissioner Sterling said she believes NURSERY SITE
the site should be cleaned up, but would like to see the owner parti- CLEAN UP
cipate in some way. Mr. Melena said part of the delay in any action
was the death of one of the owners. The process for the City to assess the cost
could cost more than the clean up.
Commissioner Goodwin said he believes this is an appropriate use of tax increment
financing. If someone bought the property in its present state, they would
probably come in and ask for assistance with clean up at that time.
• MOTION: of Goodwin, seconded by Humphrey, authorizing the expendi- AUTHORIZE
ture of up to $36,370.00 for clean up of the Minnehaha Falls MINNEHAHA
Nursery site as described in the Public Works Director's SITE CLEAN UP
memo dated September 3, 1993. Ayes - 5 - Nays - 0.
The Secretary reported that the application of American Heating, Air - AMERICAN HTG.
Conditioning & Refrigeration, Inc., showed it was expanding from a AGREEMENT VOTE
home occupation, at 13166 Floral Court, to rental space in Apple Valley
Business Center, at 6950 West 146th Street.
Vote was taken on the motion. Ayes - 5 - Nays - 0.
MOTION: of Sterling, seconded by Goodwin, setting the next Board SET NEXT
meeting at 7:00 p.m. on September 23, 1993, at City Hall. MEETING
Ayes - 5 - Nays - 0.
MOTION: of Sterling, seconded by Goodwin, to adjourn. Ayes - 5 - Nays - 0.
The meeting was adjourned at 7:55 o'clock p.m.
1110