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HomeMy WebLinkAbout07/28/1994 ECONOMIC DEVELOPMENT AUTHORITY • City of Apple Valley Dakota County, Minnesota July 28, 1994 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held July 28th, 1994, at 7:30 o'clock p.m. at Apple Valley City Hall. PRESENT: President Branning; Commissioners Erickson, Goodwin, Humphrey (attended at 7:39 p.m.) and Sterling. ABSENT: None. Staff members present were: City Administrator Gretz, Secretary Mueller, City Attorney Sheldon, City Engineer Gordon, Finance Director Ballenger, Adminis- trative Intern Grawe, Community Development Director Kelley, and Public Works Director Miranowski. President Branning called the meeting to order at 7:35 p.m. MOTION: of Erickson, seconded by Sterling, approving the agenda for APPROVE AGENDA tonight's meeting as presented. Ayes - 4 - Nays - 0. MOTION: of Sterling, seconded by Goodwin, approving the minutes of JUNE 30, 1994 • the special meeting of June 30th, 1994, as written. Ayes - MINUTES 3 - Nays - 0 (Erickson Abstained). President Branning called the public hearing to order at 7:38 p.m. to PUBLIC HEARING consider establishing Tax Increment Financing District No. 13, a rede- TIF DISTRICT velopment district for the gravel mining area north of County Road 42 NO. 13 and east of Galaxie Avenue, and noted receipt of the affidavit of publication of the hearing notice. James O'Meara reviewed the proposed master development plan amendments which make no commitment to spend dollars, but allow the area to be included in the district. In addition to the gravel area redevelopment, it allows possible assistance relating to electric utility lines and facilities. (Commissioner Humphrey attended during this time.) President Branning asked for questions or comments from the Board and the public. Commissioner Erickson noted the County Board submitted a resolution opposing the district and asked what its policy is and what the implications of a 25 -year district are? Mr. Gretz said the County's position is to oppose tax increment financing in principle. He said a 25 -year district does not take property off the tax rolls for 25 years. Mr. O'Meara said a district does not have to stay in place for 25 years. It could be terminated any time unless bonds have been sold and they need to be repaid. Commissioner Erickson asked if a project could use tax increment financing more than once with a 25 -year period; that is, build a building now and tear it down in 21 or 22 years and come in with a new project? Mr. O'Meara said it is possible but not likely. • Commissioner Goodwin asked why an eight or ten year district was not proposed? Mr. Gretz said the area involves a great deal of infrastructure construction to ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley • - Dakota County, Minnesota July 28, 1994 Page 2 be developed and will take some time to complete. The longer time period allows greater options for it to be completed. Commissioner Humphrey said because this is a 25 -year district does not mean there has been a request for 25 years of assistance. It may be five or seven years before a project comes in on the property and the assistance can be for a limited period. There were no other questions or comments and President Branning declared the hearing closed at 7:49 p.m. MOTION: of Humphrey, seconded by Goodwin, adopting Resolution No. RES. EDA -94 -9 EDA -94 -9 approving Development District and Tax Increment ESTABLISH TIF Financing Amendments and establishing Tax Increment DISTRICT 13 Financing District No. 13 as a redevelopment district. Ayes - 5 - Nays - 0. Mr. Gretz said the Board discussed establishment of a foreign trade FOREIGN zone, for the area north of County Road 42 and west of Pilot Knob, TRADE ZC,,TF�_ Road at an informal meeting. It agreed to consider it under certain conditions; one of which was if the property owner would pay 50 percent of the cost. LGS Concord has agreed to do so. President Branning said he would like t • pursue the designation as one more tool to assist in increasing the industrial base of the City. MOTION: of Humphrey, seconded by Sterling, approving the Foreign LGS CONCORD Trade Zone Designation Agreement with LGS Concord FOREIGN TRADE Corporation for payment of an equal share of the costs of ZONE AGREEMENT obtaining such a designation, not to exceed $15,000.00, and authorizing the President and Secretary to sign the same. Commissioner Goodwin said he would like a report from Janna King, the economic development consultant, on whether this would be helpful before proceeding. Commissioner Erickson asked how the EDA's share of the costs would be paid? Mr. Gretz said it could come from the City's Local Government Aid Fund. Commissioner Humphrey said he sees no problem proceeding with the LGS Concord agreement, but would like a report from Ms. King before proceeding with a consultant agreement. Vote was taken on the motion. Ayes - 5 - Nays - 0. MOTION: of Sterling, seconded by Branning, approving the Foreign HOUY FOREIGN Trade Zone Designation Consultation Agreement with Michael TRADE CONSULT. D. Houy, at a fee not to exceed $30,000.00, and authorizing AGREEMENT the President and Secretary to sign the same. 1111 ECONOMIC DEVELOPMENT AUTHORITY 4 11 1 City of Apple Valley Dakota County, Minnesota July 28, 1994 Page 3 Commissioner Goodwin questioned the terms of the agreement requiring payment of $15,000.00 up front. His understanding is that such up front payments are not usually done in the consulting business. MOTION: of Humphrey, seconded by Goodwin, tabling consideration of TABLE HOUY the Foreign Trade Zone Designation Consultation Agreement AGREEMENT with Michael D. Houy for 30 days for a report from the economic development consultant and clarification of the terms. Ayes - 4 - Nays - 1 (Branning). The Board received a preliminary draft of criteria for evaluating LANDMARK landmark corner proposals and noted they will be discussed at the CORNER UPDATE August 11, 1994, meeting. The Board also received a memo dated July 26, 1994, from Janna King ECON. DEV. advising that the Economic Development Growth Partnership Committee COMMITTEE will be holding a strategic planning session on September 24, 1994, PLANNING SESS. and inviting the Board to attend. • MOTION: of Erickson, seconded by Sterling, setting the next meeting SET NEXT of the EDA for 7:30 p.m. on August 11, 1994. Ayes - 5 - MEETING Nays - 0. MOTION: of Sterling, seconded by Goodwin, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 8:02 o'clock p.m. •