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HomeMy WebLinkAbout07/27/2017 MeetingECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota July 27, 2017 Minutes of the regular meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held July 27, 2017, at 6:00 p.m., at Apple Valley Municipal Center. PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland, Hooppaw, Maguire and Melander ABSENT: City staff members present were: Executive Director Tom Lawell, City Attorney Michael Dougherty, Community Development Director Bruce Nordquist, City Planner Tom Lovelace, Planner Kathy Bodmer and Department Assistant Joan Murphy. Meeting was called to order at 6:00 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 Bergman, seconded by Melander, approving the minutes of the meeting of June 22, 2017, as written. Ayes - 6 - Nays — 0. Abstained — 1 (Maguire). OUTLOT C, VALLEY BUSINESS PARK City Planner Tom Lovelace stated for consideration is a request for approval of a purchase agreement to allow for the sale of Outlot C, Valley Business Park by the Economic Development Authority (EDA) to Miller Farms of Lakeville, LLC. The purpose of this sale is to create an access from the adjacent property located at 5751 150th Street West (CSAH 42) and allow for the installation of utilities to serve the two properties. The 0.18 -acre parcel, legally described as Outlot C, Valley Business Park, is located along the south side of Energy Way, approximately 1/8 -mile west of Pilot Knob Road. The property is 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. He provided a brief history of the site. Miller Farms of Lakeville, LLC, has purchased the Melby property and they are negotiating with City staff on the purchase of Outlot C. In order to complete the purchase the Planning Commission must determine that the sale is consistent with the Comprehensive Plan. Economic Development Authority City of Apple Valley Dakota County, Minnesota July 27, 2017 Page 2 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 and current zoning designations. Also, 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. President Goodwin opened the public hearing at 6:04 p.m. Commissioner Hamann -Roland said this in the best interest of the City and she implores the applicant to consider some strategies to improve what is out there on that property and clean up the site. Jacob Steen, Larkin Hoffman Attorneys, representing Miller Farms of Lakeville, LLC, said he understands Commissioner Hamann-Roland's concerns. They will work with staff to resolve any outstanding concerns with the use. He said there are two outstanding easements over the property in favor of the City. One is a blanket easement for drainage and utilities and the other is for more specific utility easement. Those will either have to be confined or terminated pending on City's needs in order to accommodate private utilities and a driveway. They will be working with staff on that and have been in touch with the City Attorney and City Engineer. Commissioner Bergman asked why the easement concerns brought forth by Mr. Steen were not brought forward and presented tonight and discussed as one item on this entire project. Mr. Lovelace answered that the Economic Development Authority would not be the group that would do that. It would be up to the City Council to vacate those easements. President Goodwin commented that when he sees an aerial view of the property it does show a number of trailers stored there. President Goodwin closed the public hearing at 6:09 p.m. MOTION: of Hamann -Roland, seconded by Hooppaw, adopting Resolution No. EDA 2017-05 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. Ayes - 7 - Nays - 0. Economic Development Authority City of Apple Valley Dakota County, Minnesota July 27, 2017 Page 3 VILLAGE POINTE PLAZA / ZVAGO APPLE VALLEY Community Development Director Bruce Nordquist reported the City of Apple Valley applied for and was awarded a Livable Communities Demonstration Account grant of $1,148,639 to off -set the cost of the purchase of the 3.65 -acre property on the southwest comer of Galaxie Ave and 153rd Street West at 7070 - 153rd St W. The funding is intended to help to create a denser mixed-use development form than is typically seen in Apple Valley. It would help to create a neighborhood area that would otherwise not be created under normal market conditions. The grant will not be awarded until the conditions of the grant are fulfilled including the development of the mixed-use residential and commercial project within the triangle area. The development must commence prior to December 31, 2017 and be completed by December 31, 2018. The grant funds will be disbursed to the developer, OneTwoOne, through a business subsidy. The purpose of the business subsidy is to provide financial assistance needed to ensure the development of the triangle property occurs in accordance with the City's vision and to create jobs. The Subsidy Agreement provides the terms and conditions for the disbursement of the LCDA grant funds to OneTwoOne. Staff continues to work with the developer to develop terms that will secure the release of the $1.149 million grant funding for the acquisition of the property. The developer is ready to proceed with the residential component of the project and wishes to receive a disbursement from the grant in order to purchase the property. The terms of the purchase agreement and business subsidy agreement must be structured to ensure that the residential and commercial components of the project are developed in accordance with the City's grant agreement with the Met Council. If the entire project does not move forward in the manner agreed to in the grant, there is a risk that the grant funds would need to be returned to the Met Council. Mr. Nordquist stated legal counsel has been reviewing the business subsidy agreement and more time is needed to finish this and it is not ready to move ahead. Staff is working with the developer. President Goodwin opened the public hearing at 6:18 p.m. Commissioner Hamann -Roland commented that she understands that Mr. Nordquist and Mr. Nichols have been working very diligently on this project and it is good to see that progress is being made. She understands that come commercial pieces are being worked on and that they are not ready to be expressed publicly at this time. Mr. Nordquist said it is not ready to be discussed and is not ready for prime time but the developer does have a signed Letter of Intent for developing some space. Commissioner Hamann -Roland said it is not simply housing that is being worked on right now but the full mixed-use is being worked on. Economic Development Authority City of Apple Valley Dakota County, Minnesota July 27, 2017 Page 4 Mr. Nordquist commented they are confident of the housing project and the direction it is going and that financing is secure, the developer is experienced and the pre -sales are many. Commissioner Melander referred to the term Letter of Intent and commented that there have been a lot of things intended in the past but did not come to fruition. He has seen a lot of letters of intent but yet it is not a commitment. There could be a significant consequence if this blows up. Mr. Nordquist added for which the agreements will address. Commissioner Maguire asked if there was a jobs creation element to the grant. Mr. Nordquist answered that there is not a jobs requirement but there will be a number of jobs added certainly for the types of uses being discussed. It is about 31,000 sq. ft. of commercial. It is not huge but there is opportunity there. Commissioner Maguire inquired if there was a concern with the compliance with the grant that we do not lose so besides job creation which is not on there, is it just the mixed-use part that is the only requirement for the grant. Mr. Nordquist agreed that the requirement for the grant is it being mixed-use of housing and commercial. They require an income test on some of the residents. They look at it called affordable housing. This is a different kind of housing though it is a limited equity cooperative so that future owners are guaranteed that there would be limited growth in their share of the building. That actually keeps the value somewhat below market as you move forward over several years. MOTION: of Hamann -Roland, seconded by Grendahl, continuing the public hearing for business subsidy to August 10, 2017, at 5:00 p.m. Ayes - 7 - Nays - 0. OTHER President Goodwin thanked Commissioner Maguire for all his action and help while on the committee of the Economic Development Authority. STAFF UPDATES Executive Director Tom Lawell thanked Commissioner Maguire for all his work and added that the direction the City Council will go next is to fill the vacancy on the Economic Development Authority. ADJOURNMENT MOTION: of Maguire, seconded by Melander, to adjourn. Ayes - 7 - Nays - 0. Economic Development Authority City of Apple Valley Dakota County, Minnesota July 27, 2017 Page 5 The meeting was adjourned at 6:36 p.m. Respectfully Submitted, J Murphy, Departm Approved by the Apple Valley Econo is Development Authority on Tom Goodwin, President