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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. 1111 The meeting was adjourned at 7:45 o'clock p.m.