HomeMy WebLinkAbout04/13/1995 • ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
April 13, 1995
Minutes of the special meeting of the Economic Development Authority of Apple
Valley, Dakota County, Minnesota, held April 13th, 1995, at 9:00 o'clock p.m., at
Apple Valley City Hall.
PRESENT: President Branning; Commissioners Edgeton, Erickson, Goodwin, Humphrey,
Severson and Sterling.
ABSENT: None.
Staff members present were: City Administrator Gretz, Secretary Mueller, City
Attorney Dougherty, City Engineer Gordon, Finance Director Ballenger,
Administrative Intern Grawe, Community Development Director Kelley, Public Works
Director Miranowski and Police Chief Willow.
President Branning called the meeting to order at 9:50 p.m.
MOTION: of Humphrey, seconded by Erickson, approving the agenda for APPROVE AGENDA
tonight's meeting as presented. Ayes - 7 - Nays - 0.
• MOTION: of Erickson, seconded by Humphrey, approving the minutes of FEB. 23, 1995
the special meeting of February 23/27, 1995, as written. MINUTES
Ayes - 4 - Nays - 0 (Edgeton, Severson and Sterling
Abstained).
MOTION: of Erickson, seconded by Goodwin, adopting Resolution No. RES. EDA -95 -4
EDA -95 -4 amending the Bylaws, relating to expansion of the AMEND BYLAWS
Economic Development Authority Board to seven members, and
providing that four members will constitute a quorum for the
purpose of conducting business. Ayes - 7 - Nays - 0.
MOTION: of Humphrey, seconded by Goodwin, approving assignment of ASSIGN GRANADA
the Mortgage and Promissory Note, in the principal amount of MORTGAGE NOTE
$416,564.46, with Granada Shopping Center Partners and
Granada Associates to Leo Wolk and Seymour H. Wilensky for
the sum of $309,812.00, as per the Finance Director's memo
dated March 16, 1995; and authorizing the President and
Secretary to sign the same. Ayes - 7 - Nays - 0.
The Board received the proposal of Shervoss Company to develop landmark SHERVOSS
corner with a 64 -room hotel and a restaurant with a banquet /conference LANDMARK COR.
facility. Mr. Gretz said their proposal is to pay $200,000 for the PROPOSAL
land and request 85 percent, pay -as- you -go, tax increment financing for
11 years. He reviewed a schedule of estimated tax increment payments and also
the effect of extending the district for an additional five years which can be
done because it is a redevelopment district. Based on a project valued at
• $3,657,542, the 11 -year tax increment assistance would be $1,306,382. The EDA
would receive $230,538 or $929,138 if the five years are added.
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley •
Dakota County, Minnesota
April 13, 1995
Page 2
MOTION: of Sterling, seconded by Humphrey, directing preparation of SHERVOSS
a Purchase Agreement with Shervoss Company for the sale of PURCHASE
landmark corner, Lot 1, Block 1, Apple Valley Commercial AGREEMENT
Addition; for $200,000 with tax increment financing
assistance of 85 percent, pay -as- you -go, for consideration
at the EDA's next meeting.
John Voss and Ken Sherman, of Shervoss Company, were present and reviewed the
layout of their proposal on the site. A three - story, 64 -room, Americlnn motel
would be located on the eastern part of the site and an Old Chicago restaurant
with an attached banquet /conference facility would be on the north.
Commissioner Humphrey asked about procedures for the tax increment financing
agreement. Mr. Gretz said three agreements will be involved; the purchase agree,
a tax increment financing agreement and a subdivision agreement. The attorneys
will need to review them and determine how they will be inter - related.
Commissioner Goodwin asked how many people the banquet facility will be able to
accommodate and questioned whether 3,000 square feet is adequate. Mr. Voss said
it will accommodate 220 to 250 people. A larger facility would be more expensive •
and may not be feasible.
Mr. Gretz said the Economic Growth Partnership Committee met this morning to
review the proposal and recommended approval.
Vote was taken on the motion. Ayes - 7 - Nays - 0.
MOTION: of Humphrey, seconded by Edgeton, directing Staff to proceed EXTEND DOWN -
with preparation of the necessary documents to extend Tax TOWN TIF DIST.
Increment Financing District No. 7 of Development District
No. 2 (Downtown Redevelopment) by five years. Ayes 6 -
Nays - 1 (Sterling).
MOTION: of Goodwin, seconded by Erickson, to continue to hold EDA MEETING
meetings, as needed, at 7:00 p.m. on the same nights as SCHEDULE
regular City Council meetings. Ayes - 5 - Nays - 1
(Humphrey) (Sterling Abstained).
MOTION: of Goodwin, seconded by Severson, to adjourn. Ayes - 7 - Nays - 0.
The meeting was adjourned at 10:25 o'clock p.m.
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