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HomeMy WebLinkAbout10/13/2005 ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 13, 2005 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held October 13, 2005, at 7:30 o’clock a.m., at Apple Valley Municipal Center. PRESENT: President Severson; Commissioners Erickson, Goodwin, Grendahl, and Hamann- Roland. ABSENT: Commissioners Bergman and Edgeton. Staff Members Present: Executive Director Lawell, Secretary Murphy, City Planner Lovelace and Planning Intern Thomson. President Severson called the meeting to order at 7:38 a.m. APPROVAL OF AGENDA MOTION: of Grendahl, seconded by Erickson, approving the agenda for today’s meeting. Ayes - 5 - Nays - 0. MINUTES MOTION: of Hamann-Roland, seconded by Grendahl, approving the minutes of the special meeting of September 22, 2005, as written. Ayes - 5 - Nays - 0. PUBLIC HEARING President Severson opened the public hearing at 7:40 a.m. on the proposed revenue bond issue related to the Augustana Home of Maple Plain Project, and noted receipt of the affidavit of publication of the hearing notice. Linda Lund commented on Lemieux sisters' excitement regarding Augustana Care Corporation purchasing the Apple Valley Health Care Center property, located at 14650 Garrett Avenue. Eric Iverson, 4812 - 142nd Street, Marketing Director for Augustana, states Augustana gets involved in the community and fundraising for projects. Kathy Kopp, Augustana Representative, identifies Augustana as a tax exempt, non-profit, faith based organization. They would like to see the transaction closed by December 31, 2005. She feels Augustana would be a benefit to the community of Apple Valley and the City would benefit from the fee in the Payment-in-Lieu of Taxes agreement, which would help the City recover some of the lost taxes since a portion of the facility would become tax exempt. The housing portion will remain taxable. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 13, 2005 Page 2 Renae Lemieux was present to represent her family. She stated her parents had a vision to provide long-term health care. They were able to achieve their goal with the commitment from Apple Valley. They have respected the City and Council for their support over the years. Commission Erickson commented that Ms. Lemieux's parents did indeed achieve their goal and he sees no reason why Augustana wouldn't benefit the community. Commission Hamann-Roland asked for Augustana to comment on the funding for patient care. Renae Lemieux stated that funds are raised through large funding projects. Mr. Lawell explained that there are currently 72 units of Section 8 housing where senior citizens of limited financial means are able to live in the facility while paying no more than 30 percent of their income for services. He commented that negotiations are likely to continue for several weeks between the Dakota County CDA and Augustana Care Corporation.. Kathy Kopp commented that Augustana would like to work with the Lemieux family to achieve a December 31, 2005, closing on the property. Augustana is scheduled to meet with Dakota County CDA on October 18, 2005. Commission Grendahl showed concern for Augustana and would like to see action taken on the decision by November 3, 2005. Roger Tadsen, of Northland Securities, would not like to burden Augustana with undo issues on the bonds. He believes in volunteerism and would like the health care residents' lives enhanced and not over burdened. Commission Goodwin stated he was uncomfortable with a joint powers agreement for a senior center and does not expect support from Augustana. However, he feels a senior center is very important and needs to be addressed quickly. Commission Erickson asked if the City could have the option to build a senior center at the location. He sees the need for a senior center in a central location and noted that the site is excellent for that. Mr. Lawell stated that if Augustana was to acquire the property, the City would like to acquire part of it for a future senior center and does not expect Augustana to build it. Kathy Kopp stated Augusta would need to think through the details and would act in good faith to develop something that would be beneficial to both the City of Apple Valley and Augustana ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 13, 2005 Page 3 Care Corporation. At this time, Augustana is not able to make a commitment since they do not own the property. Tim Tucker, President of Augustana, presented financial considerations and concerns that they lose $8 - $15 a day with Medicare and Medicaid patients. They depend on fund raising and in excess of 40,000 hours of volunteerism. At this time, it is difficult to tie themselves to the commitment. Commission Erickson pointed out that the City is willing to buy the piece of property at fair market value and is not asking for anyone to build a senior center. Commission Goodwin commented on the loss of $8 - $15 a day and stated that is a considerable amount for any business to absorb. He feels Augustana Care Corporation is at the top of health care establishments and looks forward to working with them. Commission Hamann-Roland stated she is looking for the best relationship between the City of Apple Valley and Augustana and looking forward to the partnership in this community. Larry Oberloh, Apple Valley Health Care Center, reported he is pleased that Augustana is interested in purchasing the facility and he does not anticipate many changes in operations. Commission Goodwin stated he would like to wrap this up and decide by November 3, 2005. President Severson asked if there were anymore comments. There were none and the hearing was declared close at 8:20 a.m. SET SPECIAL MEETING MOTION: of Erickson, seconded by Hamann-Roland, setting a special meeting at 7:30 a.m. on November 3, 2005. Ayes - 5 - Nays - 0. LAND USE PLANNING FOR BUSINESS PARK/LIGHT INDUSTRIAL USES Mr. Lawell discussed vacant land use within the City and different land use options. Discussion led into the current temporary uses such as sand and gravel mining south of County Road 42 and the property owned by Hanson Pipe and Products and Magellan Pipeline north of County Road 42. The Commission expressed the desire for vacant land to be zoned for industrial/commercial use. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 13, 2005 Page 4 The Magellan Pipeline Company is interested in constructing another tank for diesel fuel which would hold about 300,000 barrels. Hanson Pipe and Products has already purchased land south of Apple Valley. Mr. Lawell stated it would take approximately five years for Hanson Pipe and Products to relocate. Commission Grendahl stated we need a bigger tax base than residential. She brought up concerns the City of Rosemount has had in developing their unused land. She feels the need to start promoting Apple Valley. Minnesota’s Bioscience Industry is looking for a location south of the river and has been looking at one of the junior highs in Burnsville. The Commission discussed possible sites. Commission Goodwin stated Apple Valley does not have the rail system available in Rosemount and that limits where companies are willing to locate to Apple Valley. President Severson asked for staff to put together a plan. MOTION: by Hamann-Roland, seconded by Erickson requesting staff to develop a plan for the Hanson Pipe and Products area of vacant land. Ayes -5 - Nays - 0. President Severson asked for other comments. MOTION: of Erickson, seconded by Grendahl to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 8:56 a.m.