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HomeMy WebLinkAbout09/23/1993 ECONOMIC DEVELOPMENT AUTHORITY • City of Apple Valley Dakota County, Minnesota September 23, 1993 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held September 23rd, 1993, at 7:00 o'clock p.m. at Apple Valley City Hall. PRESENT: President Branning (attended at 7:15 p.m.); Commissioners Erickson, Goodwin, Humphrey and Sterling. ABSENT: None. City staff members present were: Executive Director Melena, Secretary Mueller, City Attorney Sheldon and Finance Director Ballenger. Vice President Humphrey 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 - 4 - Nays - 0. MOTION: of Sterling, seconded by Erickson, approving the minutes of SEPT. 9, 1993 the special meeting of September 9th, 1993, as written. MINUTES Ayes - 4 - Nays - 0. • Steve Mattson, of Juran & Moody, was present and described a proposal BOND REFINANCE for refinancing certain bonds. The tax increment bond refinancing will PROPOSAL reduce the interest rate from 6.393 percent to 3.896 percent. The City Council will be acting on the refinancing, but because tax increment bonds are involved, the EDA is requested to approve a pledge agreement regarding available tax increments for the debt service account. The bonds involved are $2,100,000 G.O. Tax Increment Bonds of 1989 and $2,250,000 G.O. Tax Increment Bonds of 1990. MOTION: of Goodwin, seconded by Erickson, adopting Resolution No. RES. EDA -93 -5 EDA -93 -5 approving and authorizing execution of a tax BOND PLEDGE increment pledge agreement respecting payment of $3,250,000 AGREEMENT General Obligation Refunding Bonds of 1993, Series B, of the City of Apple Valley. Ayes - 4 - Nays - 0. The Board received a report dated September 20, 1993, summarizing BUS. ASSIST. business assistance program agreement costs incurred to date and the PROGRAM cost of those being submitted for consideration at this meeting. Mr. REPORT Melena reviewed the information and noted retention /expansion funds have been used. Agreements submitted at this meeting could be funded under the discretionary attraction portion and then only the incubator portion of the program will have funds remaining. MOTION: of Goodwin, seconded by Erickson, approving the Agreement APPLIEDGRAPHIC with AppliedGraphics Limited Partnership for discretionary BUSINESS ASST. attraction business rental assistance totaling $30,254.28, AGREEMENT • over three years, for 2,370 square feet of space; and authorizing execution of documents. Ayes - 4 - Nays - 0. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley • Dakota County, Minnesota September 23, 1993 Page 2 MOTION: of Goodwin, seconded by Sterling, approving the Agreement SUBURBAN TITLE with Suburban Title, Inc., for business rental assistance, BUSINESS ASST. under the discretionary attraction program, totaling AGREEMENT $25,000.00, over three years, for 3,200 square feet of space; and authorizing execution of documents. Commissioner Sterling said she opposes moving Suburban Title to the discretionary attraction portion of the program since it was to be used to help businesses locate to the City. The program was set up on a first come first served basis and if retention /expansion funds have been used up, that portion of the program should end. (President Branning attended during this time.) Commissioner Humphrey said the overall program has funding available and he does not see a problem with approving this under the discretionary attraction portion. Commissioner Erickson noted that the program has been adjusted as it has gone along and he does not have a problem adjusting it for this agreement. Mr. Melena said the Board authorized an initial budget of $250,000 for the three- year program. If an allocation of $60,000 is made for rental assistance to Enderes Tools, all of the funding through December 31, 1996, will be used and • that will basically end the program . Only about $3,600 will remain in the incubator portion. Vote was taken on the motion. Ayes - 4 - Nays - 1 (Sterling). MOTION: of Goodwin, seconded by Erickson, setting the next Board SET NEXT meeting at 7:00 p.m. on October 28, 1993, at City Hall. Ayes MEETING - 5 - Nays - 0. MOTION: of Sterling, seconded by Erickson, to adjourn. Ayes - 5 - Nays - 0. • The meeting was adjourned at 7:20 o'clock p.m. 1111 •