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Home My WebLink About09/26/2019 EDA Meeting••• •••• Apple II Valley Meeting Location: Municipal Center 7100 147th Street West Apple Valley, Minnesota 55124 September 26, 2019 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING TENTATIVE AGENDA 6:15 PM 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 July 25, 2019, Regular Meeting 4. Regular Agenda Items A. Adopt Resolution Approving Preliminary 2020 EDA Budget B. Convene into Closed Session to Discuss the Potential of Acquiring Property Located at 5751 - 150th Street West 5. Staff Updates 6. Adjourn Regular meetings are broadcast, live, on Charter Communications Cable Channel 180 and on the City's website at www.cityofapplevalley.org l App Valil ley ITEM: EDA MEETI NG DATE: SECTION: 3.A. September 26, 2019 Consent Agenda Description: Approve Minutes of July 25, 2019, Regular Meeting Staff Contact: Joan Murphy, Department Assistant Department / Division: Community Development Department ACTION REQUESTED: Approve minutes of regular meeting of July 25, 2019. SUMMARY: The minutes of the regular Economic Development Authority meeting are attached for your review and approval. BACKGROUND: State statute requires the creation and preservation of meeting minutes which document the official actions and proceedings of public governing bodies. BUDGET IMPACT: N/A ATTACHMENTS: Minutes ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota July 25, 2019 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held July 25, 2019, at 6:30 p.m., at Apple Valley Municipal Center. PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann -Roland, Hooppaw, Johnson and Melander. ABSENT: City staff members present were: Executive Director Tom Lawell, Community Development Director Bruce Nordquist, Finance Director Ron Hedberg, Planner/Economic Development Specialist Alex Sharpe and Department 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 Grendahl, approving the agenda. Ayes - 7 - Nays - 0. CONSENT AGENDA MOTION: of Grendahl, seconded by Bergman, approving the minutes of the meeting of May 9, 2019, as written. Ayes - 7 - Nays - 0. REDEVELOPMENT FUNDING APPLICATIONS Community Development Director Bruce Nordquist stated staff seeks authorization to submit applications for redevelopment funds which are due or available on August 1, 2019. Staff became aware of these resources in early July as changes to each program were announced. The Department of Employment and Economic Development (DEED), has a Redevelopment Grant and Loan program for sites which require remediation. The program's focus has slightly changed to allow for site which require soil correction and stabilization. This change allows staff to pursue funds for the site known as the Scannell property. The site has buried concrete debris which require soil stabilization prior to construction. This limitation has caused the site to remain undeveloped, which staff is seeking to remedy through a redevelopment program application. The Dakota County Community Development Agency (CDA) has funded the Redevelopment Incentive Grant (RIG) program for many years, and the City has been the recipient of these funds for several projects. Examples include the public parking lot in Central Village and the street signals at 147th and Johnny Cake Ridge Road. The RIG program has been amended this year and allows year round application, with the application released August 1, 2019 and accepted monthly. Changes include the focus on improvements to site infrastructure and land acquisition. The redevelopment of Time Square has been impacted by large infrastructure improvements including storm water. The application would seek to assist with correction of storm water activities and/or acquisition of the property with the intent to redevelop the site with storm water improvements. Economic Development Authority City of Apple Valley Dakota County, Minnesota July 25, 2019 Page 2 The applications for each project are required to be submitted by the City or EDA, however the project match required would be leveraging private resources. Obtaining these resources is highly competitive, would allow redevelopment at these sites, and advance redevelopment where it is not presently advancing. If funds are awarded for either or both programs, the City/EDA is required to accept the resources at a future time for redevelopment to proceed. Discussion followed. MOTION: of Hamann -Roland, seconded by Grendahl, authorizing staff to submit applications to DEED for Redevelopment Program and Incentive Grant (RIG) to Dakota County CDA. Ayes - 7 - Nays - 0. ADJOURNMENT MOTION: of Bergman, seconded by Melander, to adjourn. Ayes - 7 - Nays - 0. The meeting was adjourned at 6:42 p.m. Respectfully Submitted, /s/ Joan Murphy Joan Murphy, Department Assistant Approved by the Apple Valley Economic Development Authority on Clint Hooppaw, President ... .... •••• ..• l App Valil ley ITEM: EDA MEETI NG DATE: SECTION: 4.A. September 26, 2019 Regular Agenda Description: Adopt Resolution Approving Preliminary 2020 EDA Budget Staff Contact: Ron Hedberg, Finance Director and Bruce Nordquist Community Development Director Department / Division: Finance Department ACTION REQUESTED: Adopt Resolution Approving 2020 EDA Budget SUM MARY: The proposed 2020 budget, approved by the City Council in their annual budget, includes the Economic Development Operations Fund. The proposed budget includes the anticipated activities in 2020. If the need arises to address development opportunities, such as Business Retention, Expansion and Attraction (BREA) activities, future action would be requested to address the need. Enclosed are the pages from the budget document that relate to this fund and its use by the EDA. BACKGROUND: Possible activity areas in 2020 and 2021 include: • Anticipate trade/business development mission of a national and global destination as they present themselves. • Continue as a member of GREATER MSP, the regional economic development organization with national and global contacts for local business development. • Continue the "Open to Business" small business development service with the Dakota County CDA and Metropolitan Consortium of Community Developers. • Begin the master planning of the Mixed Business Campus (MBC) with the identified developer, Rockport LLC. • Facilitate repositioning and improvement of properties within the quadrants of CR42 and Cedar Avenue. • Manage City/EDA owned property until development. • With a fully occupied and updated Education Building apply a portion of lease revenues toward EDA business development initiatives. With a fully occupied and updated old City Hall in 2018, a portion of lease revenues will be applied as a management fee reflecting the staff time required to manage the property with the fee directed toward EDA business development initiatives. The projected 2020 year-end fund balance is $208,910. BUDGET IMPACT: ATTACHMENTS: Resolution Budget CITY OF APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA 19 - RESOLUTION APPROVING 2020 PROPOSED BUDGET WHEREAS, the Apple Valley Economic Development Authority has reviewed the proposed 2020 operating budget set forth in this resolution; and WHEREAS, the Economic Development Authority desires to adopt an operating budget for management purposes; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Apple Valley Economic Development Authority, Minnesota, that revenue and expenditure budgets for 2020 shall be as included below in this resolution and as supported by the detailed document, as revised. 2020 Revenues: Building Management Fee $ 50,000 Investment Earnings $400 Total Revenues $50,400 Expenditures: Wages & Benefits 580 Consultant Services $8,000 Dues & Subscriptions $12,650 Total Expenditures $21,230 ADOPTED this 26th day of September, 2019, by the Apple Valley Economic Development Authority Board of Commissioners. Clint Hooppaw, President ATTEST: Pamela J. Gackstetter, Secretary COMPANY DEPARTMENT BUSINESS UNIT ACTIVITY 3210 93 3212 EDA Operations Fund DESCRIPTION OF ACTIVITY The EDA Operations fund was created many years ago and focused on the activities related to the Valley Business Park development, including a revolving loan program and the development and sale of commercial lots. That activity was completed and the EDA Operations fund assists the EDA in supporting business development opportunities as they arise. MAJOR OBJECTIVES FOR 2020 and 2021 • Anticipate trade/business development mission of a national and global destination as they present themselves. • Continue as a member of GREATER MSP, the regional economic development organization with national and global contacts for local business development. • Continue the "Open to Business" small business development service with the Dakota County CDA and Metropolitan Consortium of Community Developers. • Continue the master planning of the Mixed Business Campus (MBC) with the identified developer, Rockport LLC. • Facilitate repositioning and improvement of properties within the quadrants of CR42 and Cedar Avenue. • Manage City/EDA owned property until development. • With a fully occupied and updated old City Hall in 2017 and 2018, apply a portion of lease revenues toward EDA business development initiatives. IMPACT MEASURES / PERFORMANCE INDICATORS Item Jobs added (perm. and const.) Open to Bus./AV Clients Served Actual Actual Actual Projected Projected Projected 2016 2017 2018 2019 2020 2021 400 650 500 16 8 10 500 500 500 10 10 10 2020 CAPITAL OUTLAY: None Summary Budget Department 93 EDA Operations Fund 2016 2017 2018 2018 2019 2020 2021 Actual Actual Actual Adopted Adopted Proposed Proposed Revenue: Building MgntFee - - 50,000 50,000 50,000 50,000 50,000 County Grants- Parking Lot 83,396 - - - - - - MC Grant - - 1,148,639 - - - - Admin Fees -Other Funds Investment Earnings - 13,292 - 937 - 14,849 - 1,500 - 150 - 400 400 96,688 937 1,213,488 51,500 50,150 50,400 50,400 Expenditures: Salaries & Wages 582 520 416 - 520 535 550 Emp. Benefits 49 40 33 - 40 45 50 Supplies - - - - - - - Contactual Serv. 24,500 7,766 - 7,500 7,800 8,000 8,000 Training/Travel/Dues 10,175 10,175 19,730 31,250 31,250 12,650 12,650 Developer Asstistance 800,000 - 574,320 - 574,320 - - Capital outlay 352,415 - - - - - - Total Expenditure 1,187,721 18,501 594,499 38,750 613,930 21,230 21,250 Fund Balance Beginning 1,233,128 142,095 124,531 124,531 743,520 179,740 208,910 Ending 142,095 124,531 743,520 137,281 179,740 208,910 238,060 2020 CAPITAL OUTLAY: None CITY OF APPLE VALLEY 2020 BUDGET ACCOUNT DETAIL DEPT 93: EDA OPERATIONS FUND -3212 COMPANY 3210: EDA OPERATIONS ACC'T DESCRIPTION 2018 COUNCIL ADOPTED 2019 COUNCIL ADOPTED 2019 YEAR END PROJECTED 2020 DEPT PROP 2020 ADMIN RECOMMEND 2021 DEPT PROP 2021 ADMIN RECOMMEND SALARIES 6110 Regular Employees 6138 Medicare Total 520 40 520 40 535 45 535 45 550 50 550 50 - 560 560 580 580 600 600 6235 CONSULTANT SERVICES Miscellaneous - MCCD 7,500 7,800 8,000 8,000 8,000 8,000 8,000 Total 7,500 7,800 8,000 8,000 8,000 8,000 8,000 6276 SCHOOL/CONF/EXP - OTHER Economic Development-UPONOR Nordic Business Development Trade Mission (3 @ 5500) 16,500 16,500 - - Total 16,500 16,500 - - - - - 6278 SUBSISTANCE ALLOWANCE Economic Development-UPONOR Nordic Business Development Trade Mission (3 for 7 days @ $100) 2,100 2,100 2,100 - - Total 2,100 2,100 2,100 - - - - 6280 DUES & SUBSCRIPTIONS Membership in local chapters of nordic Chambers of Commerce 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Greater MSP 10,350 10,350 10,350 10,350 10,350 10,350 10,350 Sister City 800 800 800 800 800 800 800 Total 12,650 12,650 12,650 12,650 12,650 12,650 12,650 Total Net of Personnel 38,750 39,050 22,750 20,650 20,650 20,650 20,650 TOTAL EXPENSES $ 38,750 $ 39,610 $ 23,310 $ 21,230 $ 21,230 $ 21,250 $ 21,250 ... .... ..... Apple ppl all Valley ITEM: EDA MEETI NG DATE: SECTION: 4.B. September 26, 2019 Regular Agenda Description: Convene into Closed Session to Discuss the Potential of Acquiring Property Located at 5751 - 150th Street West Staff Contact: Bruce Nordquist, Community Development Director Department/ Division: Community Development Department ACTION REQUESTED: Convene into Closed Session to Discuss the Potential of Acquiring Property Located at 5751 - 150th Street West. SUMMARY: A closed session with the EDA is scheduled. BACKGROUND: N/A BUDGET IMPACT: N/A /44 jy0.7. a 244 e; A '11 a 7/4 a' 4, / 4 44, 1 I 04t, /k4 4:4 2020 BUDGET - MAJOR OBJECTIVES Chambers of O c O . 0) a) ix . 0 v) ix W H Q W ix 0 i w E a O a) a) tnN cn D -13 0 E t n .. --0 N N D m 0 c a) a N D a E 0 V N i I N N D m a) X 0) C C c _O a i w N 0 E a) D i 0 0 W } > c Q a) O E -o a a) O ✓ w cos > a) N ✓ } U) D i 05 1113 O a O 2 T 6 g V o i O O H o a) O \LII O Q 2 V CLD a) a) a) O O) O) - O O - i i ✓ O O 0 LCL * * 0 0 0 0 0 0 CO 0 1.0 0 0 M Li) 0 M CO 1.0 CV 00 0 i— N w E ;:n•J I Woz Eimi cf) N W Z d;'4!U 0 t.) 0 a) • M": �i i IP:N 02 o co oW } NI tn O c 1 p — o •— V c i � CO s W cos i N 0) E 0 a) "Open to Business" Greater MSP Sister City Local Nordic Chambers N 0)-0 Dm Q -0 W y H o w o 0_ V cp. w N CDZ c0 Q I--1 -a V C o 0 N a) 000 0000 000 000Loc0 Q t t u) O •o N 6 6 oo N Lo I- N Ma mt Fee • .c 171•m CO nvestment Earninas H c o V H D v) 046 col)) D 0 m • c a) O. x 0 • 1-