HomeMy WebLinkAbout09/08/1994 • ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
September 8, 1994
Minutes of the special meeting of the Economic Development Authority of Apple
Valley, Dakota County, Minnesota, held September 8th, 1994, at 7:00 o'clock p.m.
at Apple Valley City Hall.
PRESENT: President Branning (attended at 7:12 p.m.); Commissioners Erickson, Goodwin,
Humphrey, and Sterling.
ABSENT: None.
Staff members present were: City Administrator Gretz, Secretary Mueller, City
Attorney Sheldon, Finance Director Ballenger, Administrative Intern Grawe,
Community Development Director Kelley, Planning Intern Kragness, and Public Works
Director Miranowski.
Vice President Humphrey called the meeting to order at 7:00 p.m.
MOTION: of Goodwin, seconded by Erickson, approving the agenda for APPROVE AGENDA
tonight's meeting as presented. Ayes - 4 - Nays - 0.
• MOTION: of Sterling, seconded by Erickson, approving the minutes of AUG. 25, 1994
the special meeting of August 25th, 1994, as written. MINUTES
Ayes - 3 - Nays - 0 (Goodwin Abstained).
Mr. Gretz commented on the history of the northeast corner of County CR 42 & CEDAR
Road 42 and Cedar Avenue and the EDA's acquisition of it. The Sherman DEVELOPMENT
Group proposes to purchase the 2.7 acres for $5.50 per square foot and PROPOSAL
locate two restaurants on it. A hotel and conference center would be
constructed northeast of the site. Tax increment financing would be used as an
incentive on the hotel site.
The Board received a report from Janna King, the City's economic development
consultant, on the proposed project and transaction. She reported that the
Economic Development Growth Partnership Committee met this morning and
recommended pursuing the concept further subject to approval of a development
agreement. (President Branning attended during this time.)
MOTION: of Humphrey, seconded by Sterling, agreeing to the concept CR 42 & CEDAR
of selling the 2.7 -acre Landmark Corner site for two CONCEPT
restaurants, and further considering the capture of tax AGREEMENT
increment on the approximately $6 million restaurant, hotel
and meeting room complex, at a rate of 85 percent, for up to
13 years, subject to applicable TIF laws. The TIF captured
would be used to induce the development of a hotel and
meeting room facility on the interior 3.3 -acre parcel. This
action is subject to approval of a development agreement by
• the City and the EDA.
Commissioner Sterling asked when the last appraisal was done on the property?
Ms. King said an appraisal was done when the EDA acquired the site and a market
analysis was done in August.
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley •
Dakota County, Minnesota
September 8, 1994
Page 2
Commissioner Goodwin asked for clarification of the Economic Development Growth
Partnership Committee recommendation and said he understood the 85 percent limit
was removed. President Branning said he also understood that change was made.
MOTION: of Goodwin, seconded by Erickson, amending the foregoing AMEND MOTION
motion by considering the use of tax increment financing as
appropriate to induce development of a hotel and meeting
room complex.
The Board noted that this approval would be a commitment to allow use of tax increment
financing of some type for the development.
Vote was taken on the amendment. Ayes - 5 - Nays - 0.
Vote was taken on the main motion as amended. Ayes - 5 - Nays - 0.
James O'Meara, bond consultant attorney, reviewed a proposed resolu- Z00 SCHOOL
tion authorizing the sale of revenue bonds to finance the alternative BOND SALE
environmental school at the Zoo. This document also approves and
authorizes execution of a number of agreements and lease documents related to the
transaction. It would not result in a bond sale until all documents are complete. •
MOTION: of Goodwin, seconded by Erickson, adopting Resolution No. RES. EDA -94 -10
EDA -94 -10 authorizing issuance of up to $8,910,000 Public $8,910,000
Project Revenue Bonds to finance the Zoo Alternative REV. BOND SALE
Environmental School of Independent School District 196,
approving associated agreements and leases, and authorizing
execution of all documents by the President and Secretary.
Mr. O'Meara said the Zoo Board is meeting September 9, 1994, and the School Board
is meeting September 12, 1994, to approve the necessary agreements. Steve
Mattson, the City's bond consultant, was also present to answer questions.
Dan Kehler, Director of Secondary Education; and Dan Bodette, Zoo School
Principal; were present. Mr. Kahler thanked the Board for its consideration and
said ground breaking for the school is being scheduled for October 4, 1994, at
12:00 noon.
Vote was taken on the motion. Ayes - 5 - Nays - 0.
MOTION: of Humphrey, seconded by Goodwin, setting the next meeting SET NEXT
of the EDA for 7:00 p.m. on September 22, 1994. Ayes - 5 - MEETING
Nays - 0.
MOTION: of Sterling, seconded by Goodwin, to adjourn. Ayes - 5 - Nays - 0.
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The meeting was adjourned at 7:45 o'clock p.m.