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HomeMy WebLinkAbout10/12/2006 ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota • October 12, 2006 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held October 12, 2006, at 6:30 o'clock p.m., at the Apple Valley Municipal Center. PRESENT: Commissioners Bergman, Erickson, Goodwin, and Hamann - Roland. ABSENT: President Severson and Commissioner Grendahl. Staff members present were: Executive Director Lawell, Secretary Gackstetter, Finance Director Ballenger, Assistant City Administrator Grawe, Public Works Director Heuer, Acting Community Development Director Lovelace, City Engineer Manson, and Police Captain Marben. Vice - President Goodwin called the meeting to order at 6:30 p.m. APPROVAL OF AGENDA MOTION: of Bergman, seconded by Hamann - Roland, approving the agenda for today's meeting as presented. Ayes - 4, Nays - 0. • MINUTES MOTION: of Hamann- Roland, seconded by Erickson, approving the minutes of the special meeting of June 20, 2006, as written. Ayes - 4, Nays - 0. $6,400,000 REFUNDING BONDS FOR ISD 196 Mr. Steve Mattson, of Northland Securities, said with the current market it is possible to save approximately two - thirds of a percent on the revenue bonds issued for the Independent School District 196 School of Environmental Studies (SES). The bonds were originally sold in 1994 and were refinanced in 1998. Although the Economic Development Authority sold the bonds for the SES project, the school district is responsible to pay the principal and interest on the bonds. The school district leases the SES property from the Zoo for $1.00 a year. There are eight years left in the lease. Refunding the bonds will save the school district approximately $105,000.00 in future debt service costs. MOTION: of Erickson, seconded by Hamann- Roland, adopting Resolution No. EDA -06 -2 amending and restating the resolution authorizing the issuance of $6,400,000 Public Project Revenue Refunding Bonds, Series 1998 (Independent School District No. 196 lease obligations) and the execution and delivery of a second supplement to Lease Agreement and a second supplement to Trust Indenture, and • authorizing the President and Secretary to sign the necessary documents. Ayes - 4, Nays -0. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 12, 2006 • Page 2 BIOSCIENCE ZONE PROGRAM Mr. Lovelace explained that Dakota Future is a non - profit organization serving Dakota County. Its primary goals are to improve the overall economic environment in Dakota County by engaging the collaborative leadership of business, government, and education; and to market Dakota County as a world -class location for business. Approximately 20 private sector companies sponsor the organization. Mr. Lovelace said Dakota Futures asked the City if it would like to participate in a joint application with Dakota and Goodhue Counties in designating specific parcels for inclusion in the Bioscience Zone Program. The Bioscience Zone Program provides tax exemptions and credits to biotech and health science businesses. The program provides a tool that allows bio- related businesses to cluster together. Five properties in Apple Valley met the criteria for inclusion in the application. Two property owners opted not to participate in the program. Venstar, Fischer Market Place, and the Hartford Group have agreed to be included in the bio -zone application. Mr. Lovelace indicated that this evening the City Council will consider passing a resolution and authorizing submittal of an application designating these properties for inclusion into the Bioscience Zone Program. Commissioner Hamann- Roland stated she was interested in the program. Commissioner Bergman asked if this would lock these properties into this use Mr. Lovelace said there is no obligation to actually develop the property for bio -tech and health science uses. The tax credits and exemptions would simply not be granted if the land is not used for this purpose. Commissioner Bergman left the meeting at 6:44 p.m. Mr. Bill Coleman, Dakota Future Executive Director, said bioscience businesses would be a valuable asset to Dakota County. Medtronics has indicated it would like to expand south of the river. Very likely the first place they will look at is a bio- zone. By participating in the program, Apple Valley is increasing its opportunity to develop and grow this type of business. Commissioner Bergman returned at 6:46 p.m. Commissioner Goodwin said he believes participating would give Apple Valley an advantage. Mr. Lawell noted that although $1,000,000 was initially funded for this program, no additional • - funds have been authorized. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota • October 12, 2006 Page 3 MOTION: of Hamann- Roland, seconded by Erickson, recommending approval of the joint application with Dakota and Goodhue Counties on the Bioscience Zone Program application to the State of Minnesota. Ayes - 4, Nays - 0. MOTION: of Erickson, seconded by Bergman, to adjourn. Ayes - 4, Nays - 0. The meeting was adjourned at 6:50 o'clock p.m.