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HomeMy WebLinkAbout01/26/2017 EDA MeetingCity of 4** **** ***** * ** *0* Apple„ Valley Meeting Location: Municipal Center 7100 147th Street West Apple Valley, Minnesota 55124 January 26, 2017 ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA 6:00 p.m. 1. Call to Order 2. Approve Agenda 3. Approve Consent Agenda Items Consent Agenda Items are considered routine and will be enacted with a single motion, without discussion, unless a commissioner or citizen requests to have any item separately considered. It will then be moved to the regular agenda for consideration. A. Approve Minutes of December 8, 2016 4. Regular Agenda Items A. Adopt Resolution Approving 2017 Board Officers B. Approve 2017 Meeting Calendar C. Outlot C, Valley Business Park 1. Hold Public Hearing 2. Adopt Resolution Approving Findings and the Sale of the Property to Miller Farms of Lakeville, LLC 5. EDA Items and Communications (For items EDA wishes to discuss) 6. Staff Updates 7. Adjourn Regular meetings are broadcast, live, on Charter Communications Cable Channel 180 and on the City's website at www.cityofapplevalley.org ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota December 8, 2016 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held December 8, 2016, at 6:30 p.m., at Apple Valley Municipal Center. PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland, Hooppaw, Maguire and Melander ABSENT: none City staff members present were: Executive Director Tom Lawell, Attorney Sharon Hills, Community Development Director Bruce Nordquist, Finance Director Ron Hedberg, Planner Kathy Bodmer, and Department Assistant Joan Murphy Meeting was called to order at 6:39 p.m. by President Goodwin. APPROVAL OF AGENDA MOTION: of Hamann -Roland, seconded by Grendahl, approving the agenda. Ayes - 7 - Nays - 0. CONSENT AGENDA MOTION: of Hooppaw, seconded by Maguire, approving the minutes of the meeting of October 27, 2016, as written. Ayes - 7 - Nays - 0. PARKSIDE VILLAGE GABELLA Planner Kathy Bodmer stated IMH Special Asset NT 175 -AVN, LLC received authorization to construct the Parkside Village development on January 24, 2013. The project included two sites, the 198 -unit Parkside Village Gabella building north of Kelley Park and the 128 -unit Parkside Village Galante building west of Kelley Park. Construction of the Parkside Village Gabella building was completed with the final certificate of occupancy issued on May 31, 2016. Bigos Management executed a purchase agreement with IMH to purchase the 198 -unit Gabella apartment building north of Kelley Park at 6820 Gabella Street. In connection with the purchase, Bigos Management submitted an application requesting tax increment financing assistance to own and operate the Parkside Village Gabella building as previously approved by the City. The City's Financial Consultant, Northland Securities, conducted a review of the project financing. The Parkside Village development is subject to an approved Development Assistance Agreement and Business Subsidy Agreement which requires the Apple Valley Economic Development Authority (EDA) and City Council to review and consent to transfers of ownership, assignment of documents and mortgages. Economic Development Authority City of Apple Valley Dakota County, Minnesota December 8, 2016 Page 2 MOTION: of Hamann -Roland, seconded by Melander, adopting Resolution No. EDA 2016-12 Consenting to Transfer of Parkside Village Gabella from IMH Gabella LLC to Bigos- Gabella, LLC by Consenting to Partial Assignment of Development Agreements and Assignment of Tax Increment Revenue Note. Ayes - 7 - Nays - 0. ADJOURNMENT MOTION: of Melander, seconded by Grendahl, to adjourn. Ayes - 7 - Nays - 0. The meeting was adjourned at 6:47 p.m. Respectfully Submitted, Joan Murphy, Departn1nt Sstant Approved by the Apple Valley Economic Development Authority on Tom Goodwin, President City of Applei Val ey MEMO Apple Valley Economic Development Authority TO: Apple Valley Economic Development Authority Board of Directors FROM: Tom Lawell, EDA Executive Director MEETING DATE: January 26, 2017 SUBJECT: APPOINTMENT OF 2017 OFFICERS The resolution organizing the Economic Development Authority provides that the offices of President, Treasurer, and Secretary be elected annually. The appointments remain in effect until the Board elects new officers. The meeting of the Economic Development Authority held January 28, 2016, the following officers were appointed: President Thomas Goodwin Vice -President Thomas Melander Secretary Pamela J. Gackstetter Treasurer Clint Hooppaw Assistant Treasurer Pamela J. Gackstetter A draft resolution is attached, with blanks to be completed, that can be adopted to appoint the 2017 officers. Recommended Action: Motion adopting the resolution appointing 2017 officers of the Economic Development Authority. :jm APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA -17- A RESOLUTION APPOINTING 2017 OFFICERS FOR THE APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the Board of the Commissioners of the Apple Valley Economic Development Authority has heretofore adopted Resolution No. EDA -90-1 which provided for initial organization of the Board and adoption of Bylaws; and WHEREAS, said Resolution specifies that the offices of President, Treasurer, and Secretary shall be elected annually, as required by law; and. WHEREAS, said officers were appointed on January 26, 2017; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Apple Valley Economic Development Authority that it hereby appoints and approves the following officers of the EDA for 2017: President Vice -President Secretary Treasurer Assistant Treasurer ADOPTED this 26th day of January, 2017. ATTEST: Pamela J. Gackstetter, Secretary Pamela J. Gackstetter Pamela J. Gackstetter , President APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY 2017 MEETING CALENDAR Meetings are held on the fourth Thursday of every other month at 6:00 p.m. at the Apple Valley Municipal Center, 7100 - 147th Street West. Thursday, January 26, 2017 (previously approved) Thursday, March 23, 2017 Thursday, May 25, 2017 Thursday, July 27, 2017 Thursday, September 28, 2017 Thursday, December 28, 2017 Thursday, January 25, 2018 city of Apple Valley ITEM: ECONOMIC DEVELOPMENT AUTHORITY MEETING DATE: SECTION: 4C 1-2 January 26, 2017 Regular PROJECT NAME: Outlot C, Valley Business Park -Resolution Finding Disposal of Property in Conformance with Comprehensive Plan PROJECT DESCRIPTION For consideration is a request to allow for the sale of Outlot C, Valley Business Park by the Economic Development Authority (EDA) to Miller Farms of Lakeville, LLC The 0.18 -acre parcel, legally described as Outlot C, Valley Business Park is located alongthe south side of Energy Way, approximately 1/8 -mile west of Pilot Knob Road. The property is p Y currently vacant and if sold to Miller Farms of Lakeville, LLC would be incorporated with a 3.54 -acre parcel currently owned by Miller Farms for the purpose of developing the properties for business park uses. STAFF CONTACT: Thomas Lovelace, City Planner APPLICANT: City of Apple Valley APPLICATION DATE: N/A DEPARTMENT/DIVISION: Community Development Department PROJECT NUMBER: PC17-01-M 60 DAYS: N/A 120 DAYS: N/A Proposed Action 1. Hold a public hearing to consider the sale of real property to Miller Farms of Lakeville, LLC. 2. Adopt the resolution finding that the sale and conveyance of Outlot C, Valley Business Park is in the best interest of the City and accepting the terms of the purchase agreement, and authorize the President and Secretary to sign the necessary documents. In 1994, the Apple Valley Economic Development Authority (EDA) acquired a 28 -acre site generally located northwest of the intersection of Pilot Knob and County Road 42 from L.G.S. Concord/Citizens Utility to facilitate the creation of an industrial business park. This 28 -acre parcel, now called Valley Business Park, was platted in 1999 and is zoned "BP" (Business Park). Immediately to the south of Valley Business Park is a 3.54 -acre unplatted parcel commonly referred to as the Melby farmstead property. When Valley Business Park was platted, a 0.18 -acre outlot, Outlot C, was created to provide the Melby propertywith access to Energy Way. The Y Melby property also has access to County Road 42, but will likely lose that access when the property is developed for another use. The Melby property is guided in the Comprehensive Plan for industrial uses and was rezoned from "A" (Agriculture) to "BP" (Business Park) in 2015. In 2012, the Melby property was put up for sale, and the property owner requested the EDA work with them to acquire Outlot C so that their property would be more attractive to a potential user. The property owners did not present an offer for the acquisition of the property. The CityAttorney has determined that no appraisal is needed and staff received approval from the EDA to begin negotiations with the Melbys for their acquisition of Outlot C. No sale of the outlot occurred as the result of the action taken by the EDA in 2012. Miller Farms of Lakeville, LLC, have purchased the Melby property and they are negotiating with City staff on the purchased of Outlot C. In order to complete the purchase the Planning Commission must determine that the sale is consistent with the Comprehensive Plan. The purchase of the outlot will help achieve the objectives of the EDA by attracting future development on the Melby property consistent with the Comprehensive Plan's and current zoning designations. Attached for your consideration is a copy of a purchase agreement for the sale of Outlot A, Valley Business Park to Miller Farms of Lakeville, LLC. The purpose of this sale is to create an access from the adjacent property located at 5751 150t" Street West (CSAH 42) and allow for the installation of utilities to serve the two properties. Any charges incurred with the improvement of the properties shall be the sole responsibility of Miller Farms of Lakeville, LLC., and will be subject to the following conditions: • All items stored outside on the adjacent parcel shall be removed. • All buildings on the adjacent property shall be vacated. • All buildings on the adjacent property shall be brought into compliance with the State Building Code and the Apple Valley Code of Ordinances. • The use and occupancy of the adjacent property shall be in compliance the City's "BP" (Business Park) district. In addition, a portion of a building located in the northwest corner of the Melby property currently encroaches on to Outlot C. Approval of this sale and any combination of the two parcels will rectify this issue. The Planning Commission, at its January 18, 2017, meeting unanimously approved a resolution finding that the disposal/sale of Outlot C, Valley Commercial Park to Miller Farms of Lakeville, LLC, for consolidation with the property located at 5751 150th Street West (CSAH 42) is consistent with the Apple Valley Comprehensive Plan. Budget Impact The City's EDA would receive proceeds from the sale of the property and it would become a taxable parcel. Attachments Resolution Exhibit A Purchase Agreement Minnesota Statutes Section 462.356 Location Maps APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA -17 - RESOLUTION APPROVING LAND SALE TO MILLER FARMS OF LAKEVILLE, LLC WHEREAS, pursuant to Minnesota Statutes Sections 469.090 to 469.108 (the "Act"), the Apple Valley Economic Development Authority (the "EDA") is authorized to sell and convey real property owned by it if it determines that said sale and conveyance are in the best interest of the City of Apple Valley and that the transaction furthers it general plan of economic, development; and WHEREAS, pursuant to said Act a public hearing was held before the EDA on January 26, 2017, to consider sale of property legally described as Outlot C, Valley Business Park Dakota County, Minnesota, attached hereto as Exhibit A; and WHEREAS, the EDA considered the facts placed before it at said public hearing concerning the proposed uses allowable under the Comprehensive Plan and Zoning Regulations to which any buyer(s) is limited to establish on the property and the market rate sales price, which must be tendered for it. NOW THEREFORE BE IT RESOLVED by the Board Members of the Apple Valley Economic Development Authority, that the following findings concerning the sale of property are adopted: 1. The EDA received an offer for sale of property legally described as Outlot C, Valley Business Park, Dakota County, Minnesota, attached hereto as Exhibit A. 2. The overall sales price for the property represents the assessed value as determined by the Dakota County Assessor. 3. The proposed use of the property will provide access to a 3.54 -acre parcel located at 5751 150th Street West, and install utilities to serve the two properties, which will lead to future economic development consistent with the City's Comprehensive Plan and Zoning Regulations. 4. The sale of the property to Miller Farms of Lakeville, LLC, for access, utility installation and future development of this property and the property located at 5751 150th Street West is found to be in the best interest of the City. BE IT FURTHER RESOLVED that the attached agreement for land purchase for the property is hereby approved and that the President and Secretary are authorized to execute the necessary documents to effect the sale. ADOPTED this 26th day of January, 2017. Thomas C. Goodwin, President ATTEST: Pamela J. Gackstetter, Secretary ,C) 414 11- 0 VACANT LAND PURCHASE AGREEMENT RECEIVED OF Miller Farms of Lakeville, LLC, a Minnesota limited liability company ("BUYER"), the sum of Five Hundred Dollars ($500.00) bycheckas earnest money to be deposited upon acceptance of Purchase Agreement by all parties, on or before the next business day after acceptance, in an escrow account of DCA Title ("Title"),but to be returned to BUYER if Purchase Agreement is not accepted by Apple Vallcey:SEELcolinm,ic Development Authority, a public body under the laws of the State of Minnesota The earnest money is part payment for the purchase of the property located at: Outlot C, Valley2Business Park, Dakota County, Minnesota, PID 01-81100-00-030 ("Property"), Which SELLER has agreed to sell to BUYER, As -Is, for Ten Thousand Eight Hundred ($10,800.00) Dollars cash on March 31, 2017 ("Date of Closing"). BUYER CONTINGENCIES: This Purchase Agreement .is subject ' to the following Agreement contingencies and if the following • •contingencies cannot be satisfied • • BUYER by st money shall be 28, 2017, this Purchase Agreement shall become null and void and all satisfactory he City expense. from earnest money Feb be refunded to the BUYER. BUYER and SELLER agree of Apple to sign a cancellation ofthe Purchase in the event the Purchase Agreement ase Agreement becomes null and void: from t , of A. BUYER obtaininginformationValley of proposed building plans and specifications,the City at if any, BUYER'oSr waived, 111 writing' by B. BUYER subdivisionBu obtaining satisfactory informationApple Valley of uyERs potential BUYER obtaining and/or developmentplans at BUYER' S BUYER. D. acceptable at Y. ER yER. BUYER'S expense, percolation tests which are If C. to access to written notice security. null may be BUYER obtainingat BUYER'S expense, for R shall or cash this expense, soil tests whichindicate thatthe Property a improved without extraordinary building methods or costs. BUYER shall this Agreement • approval amount, either party SELLER grants will be intrusive, upon a permission of the Propertytesting and surveyingpurposes. testing may provide advance to SELLER and SELLER may conditionreasonable u bond escrowIf the parties cannot agree on said bond or cash party declareand void, and the earnest moneybe refunded shall to Buyer. SELLER CONTIGENCIES: This Purchase Agreement is subject to the following contingencies and if the following contingencies are not satisfied by February 28, 2017, this Purchase Agreement shall become null and void and all earnest money shall be refunded to the BUYER. BUYER and SELLER agree to sign a cancellation of the Purchase Agreement in the event the Purchase Agreement becomes null and void: A. BUYER removing all items (movable property and vehicles) stored outside on the contiguous property owned and controlled by BUYER. B. BUYER vacating or causing the vacation of existing buildings or otherwise bringing the occupancies of any and all buildings located on the contiguous property owned and controlled by BUYER into compliance with the State Building Code. C. BUYER bringing the use of the contiguous property owned and controlled by BUYER into compliance with the Apple Valley City Code of Ordinances: Business Park Zoning District. PLEASE NOTE: BUYER may incur additional charges improving the Property including but not limited to: Hook-up and/or access charges, municipal charges, costs for sewer access, stubbing access, water access, park dedication, road access, utility connection and connecting fees, curb cuts and tree planting charges. To the best of SELLER'S knowledge, there are no hazardous wastes, abandoned wells, or underground storage tanks, except as herein noted: DEED. Upon performance by BUYER, SELLER shall deliver a Limited Warranty Deed, conveying title, to the Property, subject to the covenant required under Minnesota Statute 469.105, Subd. 6. TITLE AND EXAMINATION. SELLER shall, within a reasonable time after acceptance of this Agreement, furnish BUYER with a title commitment certified to date including proper searches covering bankruptcies and State and Federal judgments, liens, andlevied and pending special assessments. BUYER shall be allowed ten (10) business days after receipt of the title commitment for examination of title and making any objections which shall be made in writing or deemed waived. If any objection is so made SELLER shall have ten (10) business days from receipt of BUYER'S written title objections to notify BUYER of SELLER'S intention to make title insurable within 120 days from SELLER'S receipt of such written objection. If notice is given, payments hereunder required shall be postponed pending insurability of title and within ten (10) days after written notice to BUYER, the parties shall perform this Purchase Agreement according to its terms. If no such notice is given or if notice is given but title is not insurable within the time provided for, this Purchase Agreement shall be null and void, at option of BUYER, neither party shall be liable for damages hereunder to the other and earnest money shall be refunded to BUYER. In that event, BUYER and SELLER agree to sign a cancellation of Purchase Agreement. USE OF PROPERTY. Buyer shall use the Property for the purposes of providing access to Buyer's contiguous property and for the installation of utilities to serve the Property and the Buyer's contiguous property. Buyer may make additional use of the Property, so long as such use is permitted under the applicable zoning ordinance. REAL ESTATE TAXES shall be paid as follows: BUYER shall pay prorated from day of closing real estate taxes due and payable in the year of closing. SELLER shall pay prorated to the day of closing real estate taxes due and payable in the year of closing. In the event the closing date is changed, the real estate taxes paid shall, if prorated, be adjusted to the new closing date. SELLER warrants taxes due and payable in the year 2017 are non - homestead classification. SELLER makes no representation concerning the amount of real estate taxes subsequent to closing. SPECIAL ASSESSMENTS shall be paid as follows: SELLER shall pay on or before the date of closing all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. SELLER shall pay on date of closing all other special assessments levied as of the date of closing. SELLER shall provide for payment of special assessments pending as of the date of closing for improvements that have been ordered by the City or other governmental assessing authorities. SELLER shall pay into assessment. Upon certification of the p shall pay said assessment and refund any escrowed overage to the BUYER If `� l aslosing evied hall date assessm pay on assessments payment of which is required as It real estate taxes due and payable in the year t agrees hat this Purchase Agreem fallowing c ACCEPTANCE: BUYER understands and acceptance by SELLER in writing. losing d thereafter. INSPECTION: BUYER has the right to inspect Property prior to closing. ent is su ect to GENERAL WARRANTIES: SELLER WARRANTS THAT SELLER HAS NOT RECEIVED ANY NOTICE FROM ANY GOVERNMENTAL AUTHORITY AS TO VIOLATION OF ANY LAW, ORDINANCE OR REGULATION. IF THE PROPERTY IS SUBJECT TO RESTRICTIVE COVENANTS, SELLER WARRANTS THAT SELLER HAS NOT RECEIVED ANY NOTICE FROM ANY PERSON OR AUTHORITY AS TO A BREACH OF THE COVENANTS. ANY NOTICES RECEIVED BY SELLER WILL BE PROVIDED TO BUYER IMMEDIATELY. DEFAULT: If title is insurable or is corrected as provided herein, and BUYER defaults in any of the agreements herein, SELLER may terminate this Purchase Agreement and payments made hereunder may be retained by SELLER. This provision shall not deprive either BUYER or SELLER of the right to recover damages for a breach of this Agreement or of the right of specific performance of this Agreement, provided this Purchase Agreement is not terminated, and further provided, as to specific performance, such action is commenced within six (6) months after such right of action arises. TIME IS OF THE ESSENCE: Time is of the essence in this Purchase Agreement. METHAMPHETAMINE DISCLOSURE: To the best of SELLER'S knowledge, during the time of its ownership, methamphetamine production has not occurred on the Property. SURVIVAL: SELLER'S warranties shall survive closing. CLOSING COSTS: Closing costs shall be paid according to the usual and customary procedure and responsibility as occurs in Dakota County, Minnesota. ENTIRE AGREEMENT: This Purchase Agreement, any attached exhibits, and any addenda or amendments signed by the parties, shall constitute the entire Agreement between SELLER and BUYER, and supersedes any other written or oral agreements between SELLER and BUYER. This Purchase Agreement can be modified only in writing signed by SELLER and BUYER. POSSESSION: SELLER shall deliver possession of the Property not later than Date of Closing. SELLER Apple Valley Economic Development Authority, a public body under the laws of the State of Minnesota By: Its: Date: BUYER Miller Farms of Lakeville, LLC, a Minnesota limited liability company By: Joseph M Miller Its: Chief Manager Date: [THIS PAGE INTENTIONALLY LEFT BLANK] 1 MINNESOTA STATUTES 2016 462.356 462.356 PROCEDURE TO EFFECT PLAN: GENERALLY. Subdivision 1. Recommendations for plan execution. Upon the recommendation by the planning agency of the comprehensive municipal plan or sections thereof, the planning agency shall study and propose to the governing body reasonable and practicable means for putting the plan or section of the plan into effect. Subject to the limitations of the following sections, such means include, but are not limited to, zoning regulations, regulations for the subdivision of land, an official map, a program for coordination of the normal public improvements and services of the municipality, urban renewal and a capital improvements program. Subd. 2. Compliance with plan. After a comprehensive municipal plan or section thereof has been recommended by the planning agency and a copy filed with the governing body, no publicly owned interest in real property within the municipality shall be acquired or disposed of, nor shall any capital improvement be authorized by the municipality or special district or agency thereof or any other political subdivision having jurisdiction within the municipality until after the planning agency has reviewed the proposed acquisition, disposal, or capital improvement and reported in writing to the governing body or other special district or agency or political subdivision concerned, its findings as to compliance of the proposed acquisition, disposal or improvement with the comprehensive municipal plan. Failure of the planning agency to report on the proposal within 45 days after such a reference, or such other period as may be designated by the governing body shall be deemed to have satisfied the requirements of this subdivision. The governing body may, by resolution adopted by two-thirds vote dispense with the requirements of this subdivision when in its judgment it finds that the proposed acquisition or disposal of real property or capital improvement has no relationship to the comprehensive municipal plan. History: 1965 c 670 s 6 Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. fik) � � � � _ r1;r7-- Melby and EDA Properties e - 00' 111 a - - - Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification. Dakota County assumes no legal responsibility for the information contained in this data. Map Scale 1 inch = 87 feet 11/8/2012