HomeMy WebLinkAbout10/25/2018 EDA MeetingECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
October 25, 2018
Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota
County, Minnesota, held October 25, 2018, at 6:30 p.m., at Apple Valley Municipal Center.
PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland, Hooppaw and
Johnson
ABSENT: Commissioner Melander
City staff members present were: Executive Director Tom Lawell, City Attorney Mike Dougherty,
Community Development Director Bruce Nordquist, Finance Director Ron Hedberg, Planner Kathy
Bodmer and Assistant Joan Murphy.
Meeting was called to order at 6:30 p.m. by President Hooppaw.
APPROVAL OF AGENDA
MOTION: of Hamann -Roland, seconded by Goodwin, approving the agenda. Ayes - 6 - Nays - 0.
CONSENT AGENDA
MOTION: of Goodwin, seconded by Bergman, approving the minutes of the meeting of July
26, 2018, as written. Ayes - 6 - Nays - 0.
BIGOS-GALANTE, LLC
Finance Director Ron Hedberg stated in 2016, the Apple Valley Economic Development Authority
(EDA) entered into a number of agreements to accomplish the development of the Parkside Galante
building. Now the Galante building is substantially complete and the developer has completed the
required minimum improvements. It is appropriate for the EDA to confirm the completion of the
minimum improvements and to issue the tax increment financing note and cancel the forgivable
note.
He explained on November 14, 2016, the City of Apple Valley entered into an Amended and
Restated Development Assistance Agreement with Bigos Galante, LLC, to provide financial
support in the amount of up to $2,666,000 for substantial site improvements involved in the
construction of the Parkside Galante Apartments. The support provided comes in the form of "Pay
as You Go" Tax Increment Financing (TIF) in addition to returning of penalties and interest that
had accrued on delinquent special assessments through 2012 and providing upfront assistance of
$574,000.
The Development Assistance Agreement included a "Pay as You Go" TIF financing provision
where the developer could be reimbursed for eligible development costs related to the construction
of Parkside Galante Apartments in the second phase of the TIF 15 Parkside District. A remaining
condition of the tax increment district is that 20% of the available units be rented to, or held out for,
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
October 25, 2018
Page 2
households that are under 50% of the median household income for Dakota County. The "Pay as
You Go" financing calls for repayment from the annual tax increment collected from the project
and is dependent on the property owner making the annual property tax payments.
The development assistance will be recovered in the future by retaining 30% of any available tax
increment generated by this property.
Discussion followed.
MOTION: of Hamann -Roland, seconded by Goodwin, adopting Resolution EDA 2018-05
authorizing the execution of a tax increment revenue note for the Parkside — Galante
project. Ayes - 6 - Nays - 0.
MOTION: of Bergman, seconded by Goodwin. adopting Resolution EDA 2018-06 certifying
the benefit date for the Business Subsidy Agreement with Bigos-Galante, LLC and
authorizing the execution of the Loan Forgiveness Agreement. Ayes - 6 - Nays - 0.
ADJOURNMENT
MOTION: of Goodwin, seconded by Grendahl, to adjourn. Ayes - 6 - Nays - 0.
The meeting was adjourned at 6:37 p.m.
Respectfully Submitted,
4L 4,ta,p
Jqn Murphy, Departrrknt ' ;s s ant
Approved by the Apple Valley
Development Authority on
nt Hooppaw, President