HomeMy WebLinkAbout11/03/2005 ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
• November 3, 2005
Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota
County, Minnesota, held November 3, 2005, at 7:30 o'clock a.m., at Apple Valley Municipal
Center.
PRESENT: President Severson; Commissioners Bergman, Erickson, Goodwin, Grendahl, and
Hamann - Roland.
ABSENT: Commissioner Edgeton.
Staff Members Present: Executive Director Lawell, Secretary Gackstetter, City Attorney
Huusko, Assistant City Administrator Grawe, and City Planner Lovelace.
Others Present: Jenny Boulton from Briggs and Morgan, Kathy Kopp and Tim Tucker from
Augustana Care Corporation, and Andrea Brennan and Mark Ulfers from Dakota County
Community Development Agency (CDA).
President Severson called the meeting to order at 7:31 a.m.
• APPROVAL OF AGENDA
MOTION: of Hamann - Roland, seconded by Grendahl, approving the agenda for today's
meeting. Ayes - 6 - Nays - 0.
MINUTES
MOTION: of Grendahl, seconded by Hamann - Roland, approving the minutes of the special
meeting of October 13, 2005, as written. Ayes - 6 - Nays - 0.
AUGUSTANA HOME OF ST. PAUL PROJECT (Health Care Facilities)
Mr. Lawell said staff has been working with Augustana Care Corporation and the attorneys to
address concerns the Commission raised regarding the preservation of Section 8 housing and the
Payment in Lieu of Taxes Agreement. One of the challenges has been devising an agreeable
payment structure for the Payment in Lieu of Taxes Agreement. A solution may be to
incorporate a clause whereby if Augustana receives money from the State, those funds would be
transferred to the City.
MOTION: of Hamann- Roland, seconded by Goodwin, approving language in the Payment in
Lieu of Taxes Agreement with Augustana Home of St. Paul providing that the
Pilot Payments will be due only if Augustana receives an increase in rates from
• the State of Minnesota to make payments in lieu of real estate taxes, and
providing that Augustana would in good faith make application for those
payments annually. Ayes - 6 - Nays - 0.
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
November 3, 2005
•
Page 2
Commissioner Hamann -Roland clarified that the Payment in Lieu of Taxes Agreement is for the
medical facility and that the assisted living facility will continue to pay taxes.
Mr. Lawell said staff has also been working on the preservation of Section 8 housing.
Ms. Andrea Brennan said the CDA provided tax increment financing assistance to the Apple
Valley Villa. As required by state statute, the sale of Apple Valley Villa triggers a repayment of
the loan in full. The CDA is working with Augustana Care Corporation to renegotiate the
repayment terms in an effort to preserve the 72 -units of Section 8 rental assistance currently
available at the Apple Valley Villa.
Mr. Mark Ulfers said Section 8 is probably the best funded of the Housing and Urban
Development (HUD) programs. However, all HUD programs are discretionary and contingent
on the budget. Funding is determined annually by Congress.
Mr. Lawell referred the Commission to number (6) on page 5 of the Payment in Lieu of Taxes
Agreement regarding Section 8 housing. It requires Augustana Home of St. Paul to attempt to •
negotiate an Interest Rate Reduction Loan Agreement with the CDA. If such an agreement is
met, Augustana will agree to maintain the 72 Section 8 apartment units.
Commissioner Grendahl asked the representatives of Augustana if the requirements being
proposed on Section 8 would be a deal breaker.
Ms. Kathy Kopp said it could be, but believes it is doable with the language presented. She then
clarified that the Section 8 commitment would be by Augustana of Maple Plain and not
Augustana of St. Paul.
Commissioner Grendahl noted that the sale is time sensitive and asked to be updated as to the
progress of the agreement.
MOTION: of Hamann- Roland, seconded by Goodwin, approving the pass through language
regarding Section 8 housing as written in the Payment in Lieu of Taxes
Agreement under Article II (6); and directing the City Attorney to prepare an
agreement with Augustana of Maple Plain which reflects the Section 8
commitment; and authorizing the President and Secretary to sign the same. Ayes -
6- Nays -0.
Mr. Lawell then referred the Commission to Section 6.6 on page 10 regarding the expiration of
the Agreement. The question is what obligation, if any, should Augustana have to continue to •
make payments to the City should they continue to receive funding from the State, and for how
long should they be required to request funding for Section 8.
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
40
November 3, 2005
Page 3
Commissioner Goodwin asked when the bond expires.
Ms. Jenny Boulton said the term of the bond is 30 years.
Mr. Mark Ulfers informed the Commission that it is not uncommon for bonds to be recalled or
refinanced prior to their original term.
Ms. Jenny Boulton said the bond in question is callable without a premium in 2015.
MOTION: of Goodwin, seconded by Grendahl, authorizing the Payment in Lieu of Taxes
Agreement to expire in ten years, unless earlier terminated or rescinded in
accordance with its terms. Ayes - 6 - Nays - 0.
MOTION: of Goodwin, seconded by Erickson, approving the Payment in Lieu of Taxes
Agreement with Augustana Home of St. Paul, Inc., minus the Section 8 language;
authorizing the Executive Director and City Attorney to make minor changes; and
• authorizing the President and Secretary to sign the same.
MOTION: of Erickson, seconded by Hamann- Roland, adopting Resolution EDA -05 -4
authorizing the issuance and sale of up to $16,100,000.00 Health Care Revenue
Bonds, Series 2005A, and up to $400,000.00 Taxable Health Care Revenue
Bonds, Series 2005B, for Augustana Home of St. Paul Project; and authorizing
execution of the necessary documents to complete the sale. Ayes - 6 - Nays - 0.
MOTION: of Grendahl, seconded by Hamann -Roland to adjourn. Ayes - 6 - Nays - 0.
The meeting was adjourned at 8:31 a.m.
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