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HomeMy WebLinkAbout06/22/2017 MeetingECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota June 22, 2017 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held June 22, 2017, at 6:30 p.m., at Apple Valley Municipal Center. PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland, Hooppaw and Melander ABSENT: Maguire City staff members present were: Executive Director Tom Lawell, City Attorney Michael Dougherty, Community Development Director Bruce Nordquist and Department Assistant Joan Murphy. Meeting was called to order at 6:30 p.m. by President Goodwin. APPROVAL OF AGENDA MOTION: of Melander, seconded by Hamann -Roland, approving the agenda. Ayes - 6 - Nays - 0. CONSENT AGENDA MOTION: of Hamann -Roland, seconded by Bergman, approving the minutes of the meeting of May 25, 2017, as written. Ayes - 5 - Nays — 0. Abstained — 1 (Melander). PLANNING ESTABLISHMENT OF THE TAX INCREMENT FINANCING (TIF) DISTRICT NO. 18 Community Development Director Bruce Nordquist provided a draft resolution that was prepared by the City's bond counsel for initial actions required for the establishment of a Tax Increment Financing District addressing soil deficiency in the active mining area at Johnny Cake Ridge Road and CSAH 42. An application for TIF resources by Rockport LLC is being considered (to be known as TIF 18) to coincide with anticipated development applications for 40 acres of commercial property at 157th Street and Pilot Knob Road. It is important that the master planning effort also advances the themes, features and priorities for the 400 acre development using the initial 40 acres of commercial as a built environment example of more to come. The effort should be sufficiently advanced to a stage where the Economic Development Authority and City Council will be better able to determine the benefit of the tax increment investment to take action on the TIF application and initial land uses. In 2013, the Minnesota Legislature passed special enabling legislation for the City of Apple Valley which provides special authority related to the Fischer Aggregate mining site property within the City. In summary, the special legislation provided authority for the City to establish a "project area" that meets certain criteria provided in the special law and to establish a Economic Development Authority City of Apple Valley Dakota County, Minnesota June 22, 2017 Page 2 special type of tax increment financing (TIF) district, a "soil deficiency district" within the project area, along with the establishment of other types of tax increment financing districts allowed by current law. To establish a "soil deficiency district" under the special law requires that the City find by resolution that certain conditions exist within the boundaries of the district. The establishment of a TIF district allows the City to capture the increase in certain property taxes payable from new development for a defined period of time. The City is able to capture the increase in all property taxes, except for State property taxes, general education levy taxes, or referendum property taxes, to provide financial assistance to a project. To establish a TIF district, a city or an authority must find that a proposed development or redevelopment would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future, among other findings that must be made. Rockport maintains that TIF will advance development more quickly than a projected 15 to 45 years. In April 2016, Fischer Sand & Aggregate, LLP (now referred to as "Rockport" or the "Developer") submitted an application to the City for TIF assistance, consistent with the Special TIF Legislation, for the reclamation of its gravel mining site for development. The entire site is now being referred to and marketed by the Developer as "Orchard Place". City staff and the Developer have been meeting to consider the application and request for assistance. In June 2016, the City Council, pursuant to the Special TIF Legislation, adopted a resolution approving the project area and making findings regarding the project area. This was the first step before the EDA and City could consider the establishment of a TIF district. The next step is to consider the establishment of a TIF district. Prior to the establishment of a TIF district, the City must provide written notice to the County and School District and a copy of a written plan for the TIF district. The process will commence at such time the EDA is ready to request the City Council to call for the public hearing. The entire approval process is anticipated to take approximately 60-90 days starting with the calling for the public hearing. Tax increment assistance requires a public hearing to form the district. Tax increment, by state law, is also considered a business subsidy. Public hearings are being scheduled for September 28, 2017, for the City and EDA to consider business assistance for the planned tax increment district. Discussion followed. MOTION: of Hamann -Roland, seconded by Hooppaw, recommending that the City Council call a public hearing on the proposed adoption of the proposed establishment of a soil deficiency tax increment financing district No. 18, within the project area established by Special Law. Ayes - 6 - Nays - 0. MOTION: of Hooppaw, seconded by Bergman, adopting Resolution No. EDA 2017-04 calling for a public hearing on the proposed granting of Business Subsidy on September 28, 2017, at 6:00 p.m. Ayes - 6 - Nays - 0. Economic Development Authority City of Apple Valley Dakota County, Minnesota June 22, 2017 Page 3 ADJOURNMENT MOTION: of Hooppaw, seconded by Grendahl, to adjourn. Ayes - 6 - Nays - 0. The meeting was adjourned at 6:39 p.m. Respectfully Submitted, 4-11 Jo Murphy, Departm t As tant Approved by the Apple Valley coma ic Development Authority on 7 Tom Goodwin, President