HomeMy WebLinkAbout2012-03-08 Regular Meeting Packet i+•
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City of App�e
Va��eV
NOTICE: The Apple Valley Economic Development Authority will hold a
special informal meeting at the Municipal Center, on Thursday,
March 8, 2012, at 4:30 p.m. to discuss the items listed in the
following agenda:
ECONOMIC DEVELOPMENT AUTHORITY INFORMAL MEETING
TENTATIVE AGENDA
MARCH 8, 2012 — 4:30 P.M.
1. Call to Order
2. Approval of Agenda
3. Update on Changes to the Master Development District to Include TIF District 14
and Modifying TIF Districts 7 and 13 to Reflect the Expanded Master Development
District
4. Small Business Building Improvement Program
5. Project Updates
6. Other items
7. Adjourn
(Agendas are also available on the City's Internet Web Site http://www.cityofapplevalley.org)
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City of Apple
valley ME�o
Finance Department
TO: Economic Development Authority, and
Tom Lawell, Executive Director
FROM: Ron Hedberg, Finance Director
DATE: March 3, 2012
SUBJECT: Update on modification to the Master Development District to include TIF District
14 and modifying TIF District 7 and 13 to reflect the expanded Master
Development District
Introduction
Staff would like to update the EDA on upcoming City Council actions and to discuss the request for
economic development assistance from SPOWD Development and if the SPOWD Development
Project progresses the EDA will be asked to consider a business subsidy agreement at a future
meeting. The first item is a housekeeping action to align the TIF plans with the Expansion of the
development District that occurred in 2010. The second is considering the creation of a new TIF
district to support the construction costs of a portion of 147�' Street.
SPOWD Development (represented by Hebert and Associates) has submitted an appiication for tax
Increment Financing (TIF) assistance for their project in the Valley Business Park, the area adjacent
to the 147�' St extension project, east of Flagstaff and west of Johnny Cake Ridge Road. The timing
of this project is expected to begin along with the anticipated construction of 147'�' St between
Flagstaff and Johnny Cake.
The Master Development District must be amended to include any new districts are
contemplated. Mary Ippel, Bond Gounsel and our attorney for TIF related activity has indicated
that recent interpretations from the State Auditor's office also include that when the Master
Development Districts are expanded the individual TIF plans for each of the Districts should be
amended. In February 2010 the master Development District was enlarged but the individual
TIF District plans were not amended to include the expanded area. This action on the Master
Development District includes amending Districts 7 and 13 to reflect the expanded Master
Development District.
The City Council has set March 22, 2012 as a date for a public hearing to consider the creation of
TIF District # 14 and the expansion of the Master Development District that occurred in 2010.
Update on Master Development District to include new TIF District #14
March 3, 2012
Discussion:
The project includes the development of 21 acres, which will be comprised of two separate phases
including four buildings, totaling 200,000 square feet of office/ show room! warehouse. The total
development costs are estimated to be approximately $14 million.
Any assistance to be provided using TIF would require the use of the temporary authority granted by
the Legislature last year as part of the Jobs Bill. In an effort to stimulate construction a new
Economic Development TIF district can be created and to qualify under the temparary authority the
construction must commence prior to July 1, 2012. To meet this time frame the City Council has
called for a public hearing on March 22, 2012.
The assistance requested by the developer is to offset the anticipated special assessments related to
the construction of 147�' St and Flagstaff Court. Flagstaff Court would be constructed during the first
phase of the project and would serve only the four properties ultimately constructed on the site. 147�'
Street, Flagstaff to Johnny Cake, would be completed and serve as the Ring Route connection.
Because of the site layout and the plans by the developer to construct the northern two buildings first
it is necessary to construct both Flagstai� Court and 147�' Street at the same time.
The property was purchased by SPOWD Development and is encumbered by an agreement between
the City and the property owner that ca11s for the City to construct 147�' street by 2015 and in turn
calls for the assessment of the road costs to be levied against the SPOWD Development parcels. The
agreement alsa called for the costs to be assessed for the portion of the assessable cost related to the
Magellan parcel against the SPOWD Development parcel. '
The preliminary special assessment amounts for 147�' Street are $1,300,000 and the cost for Flagstaff
Court is approximately $800,000, for a total of $2,100,000 in road costs. The attach�d proforma '
shows that the costs for 147�' Street would be assessed and the costs for Flagstaff court would be
financed by the developer. The developer has requested that the repayment of the special assessments
be structured around the timing of the T� Increments that would be generated from the project, this
results in the inclusion of capitalized interest of $50,000 in the fmancing costs. The developer would
be reimbursed TIF eligible costs for the mechanism of a TIF developer note, and any repayments
would be restricted to the available increment generated and assluning full development would
generate approximately $1,699,400 towards reimbursement of eligible costs.
The TIF plan would be set up as a pay as you go district, with the costs incurred secured by the
property in the form of a special assessment levied against the property. The available increment
would be the amounts generated from the project less 10% to provide far administrative costs
incurred by the City and the amaunts deducted by the State Auditor. Based on the value of the
development of $70 per square foot for phase I and $73.50 for phase II the project as contemplated
would generate tax increment of approximately $926,000 on the first phase and $773,000 in the
second phase, a total of $1,699,000, assurning both pha.ses are completed. The first phase of the
project would commence in early 2012 and the second phase would be in 2014.
Update on Master Development District to include new TIF District #14
March 3, 2012
Recap of SPOWD Development costs associated with the construction of 147 and Flagstaff Ct:
Phase I Phase II Total
T� Increment Generated $ 926,000 $ 773,000 $1,699,000
Project Costs:
147�' Street (1,300,000) -0- (1,300,000)
FlagstafFCozut ( 800,000) -0- ( 800,000)
Assessment Financing costs ( 280,000) -0- ( 2$0,000
Total Assessment Costs (2,380,000) -0- { 2,380,000)
Remaining Gap between
Developer Request and Revenues
, Generated from the Project (1,454,000) 773,000 <( 681,000) _ _-
Because of the timing of the road construction and the timing of each of the phases there remains a
significant gap and the developer would be assuming the risk of the development oceurring within a
time frame that generates resources to cover the project costs. For example, if only phase I is
completed the remaining gap is $1,454,000. Mark Hebert, representing SPOWD Development, has
indicated that this is too much risk far them to take and has requested that additional assistance be
provided from outside this project.
The EDA is asked to provide direction on the request for additionai assistance at the March 8�`EDA a
meeting and staff will present a summary of any available sources from outside this new district.
Staff Recommendation
Staff is seeking direction on the financial assistance program provided to SPOWD Development.
Action Re uec� sted:
No formal action is requested at this time.
PRELIMINARY - For Discussion Only
City of City of Apple Valley
Tax Increment Financing District No. 14
G.O. Bonds for Public Improvements
Interest Start Date 8/1/2012 Total Costs To Finance 1,300,000
First Principal 2/1/2015 Less: Up-Front Funds -
Term (Years) 10 Net Cost 1,300,000
Finance Expense 25,000
Capitalized Interest 50,000
Rounding
Total Bond Issue 1,375,000
Funds Available
Taxes
Payable Payment Estimated Capitalized Assessment Balance in
Year Date Principal Rate Interest P&I Interest Payments Total Fund
2012 8/1/2012 - - - - 50,000
2/1/2013 - 0.30% 11,130 11,130 12,500 - 12,500 38,870
2013 8/1/2013 - 11,130 11,130 12,500 12,500 27,740
2/1/2014 - 0.45% 11,130 11,130 12,500 40,000 52,500 56,610
2014 8/1/2014 - 11,130 11,130 12,500 40,000 52,500 85,480
2/1/2015 140,000 0.65% 11,130 151,130 90,000 90,000 24,350
2015 8/1/2015 - 10,675 10,675 90,000 90,000 103,675
2/1/2016 140,000 0.85% 10,675 150,675 90,000 90,000 43,000
2016 8/1/2016 - 10,080 10,080 90,000 90,000 122,920
2/1/2017 140,000 1.05% 10,080 150,080 90,000 90,000 62,840
20ll 8/1/20ll - 9,345 9,345 90,000 90,000 143,495
2/1/2018 140,000 1.25% 9,345 149,345 90,000 90,000 84,150
2018 8/1/2018 - 8,470 8,470 90,000 90,000 165,680
2/1/2019 140,000 1.50% 8,470 148,470 90,000 90,000 107,210
2019 8/1/2019 - 7,420 7,420 90,000 90,000 189,790
2/1/2020 140,000 1.75% 7,420 147,420 90,000 90,000 132,370
2020 8/1/2020 - 6,195 6,195 90,000 90,000 216,175
2/1/2021 140,000 1.95% 6,195 146,195 90,000 90,000 159,980
2021 8/1/2021 - 4,830 4,830 90,000 90,000 245,150
2/1/2022 140,000 2.15% 4,830 144,830 90,000 90,000 190,320
2022 8/1/2022 - 3,325 3,325 90,000 90,000 276,995
2/1/2023 140,000 230% 3,325 143,325 20,000 20,000 153,670
2023 8/1/2023 - 1,715 1,715 20,000 20,000 171,955
2/1/2024 140,000 2.45% 1,715 141,715 - - 30,240
2024 8/1/2024 - - - - - 30,240
2/1/2025 - 2.60% - - - - 30,240
2025 8/1/2025 - - - - 30,240
TOTAL 1,400,000 179,760 1,579,760 50,000 1,560,000 1,610,000
Note:
Beginning Fund Balance includes capitalized interest.
� NORTNLAiVD Sl'RATECIES �
SpiCiOl P�oi�ClS GloY6
2/23/2012
PRELIMINARY - For Discussion Only
City of Apple Valley
Tax Increment Financing District No. 14
Tax Increment Revenue Note
Interest Start Date: 2/1/2013
Costs Reimbursed: 2,100,000
Interest Rate: 3.790%
First Payment: 8/1/2014
Last Payment: 2/1/2023
100%
Taxes Semi-Annual Annual Tax Reimbursible
Payable Payment Increment Increment Costs
Year Date Interest Principal P+I Available for Note Outstanding
2014 8/1/2014 22,483 - 22,483 22,483 44,965 2,100,000
2/1/2015 22,483 - 22,483 22,483 2,100,000
2015 8/1/2015 38,662 - 38,662 38,662 77,324 2,100,000
2/1/2016 38,662 - 38,662 38,662 2,100,000
2016 8/1j2016 39,795 47,406 87,201 87,201 174,402 2,052,594
2/1/2017 38,897 48,304 87,201 87,201 2,004,290
2017 8/1/2017 37,981 65,399 103,380 103,380 206,761 1,938,891
2/1/2018 36,742 66,638 103,380 103,380 1,872,252
2018 8/1/2018 35,479 84,080 119,560 119,560 239,119 1,788,172
2/1/2019 33,886 85,674 119,560 119,560 1,702,498
2019 8/1/2019 32,262 87,297 119,560 119,560 239,119 1,615,201
2/1/2020 30,608 88,952 119,560 119,560 1,526,249
2020 8/1/2020 28,922 90,637 119,560 119,560 239,119 1,435,612
2/1/2021 27,205 92,355 119,560 119,560 1,343,257
2021 8/1/2021 25,455 94,105 119,560 119,560 239,119 1,249,152
2/1/2022 23,671 95,888 119,560 119,560 1,153,264
2022 8/1/2022 21,854 97,705 119,560 119,560 239,119 1,055,559
2/1/2023 20,003 99,557 119,560 119,560 956,002
TOTAL 555,051 1,143,998 1,699,048 1,699,048 1,699,048
NQIiTHLAND STRATEGIE9
3BiC40M PrOj4Ci# GrQUP
AV TIF 14 SPOWD DEVELOPMENT FEB 23 2012 2/23/2012
For Preliminary Discussion Purposes Only
SPOWD Development, LLG
10-Year Operating Pro Forma
T1F 14, Apple Valley, MN
Phase 1 Year 1 2 3 4 5 6 7 8 9 10
Phase I[ Year 1 2 3 4 5 6 7 8 9 10
CalendarYear 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
O�ce (square fooWge) 25,000 25,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Warehouse (square footage) 75,000 75,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000 150,000
INCOME
Office $212,500 $212,500 $435,500 $435,500 $439,875 $448,545 $448,545 $457,470 $461,978 $461,978 $466,619 $466,619
Warehouse $337,500 $337,500 $700,500 $700,500 $707,625 $714,510 $714,510 $721,778 $728,800 $728,800 $736,213 $736,213
Gross Potential Rents $550,000 $550,000 $1,136,000 $1,136,000 $1,147,500 $1,163,055 $1,163,055 $1,179,248 $1,190,779 $1,190,779 $1,202,832 $1,202,832
Vacancy/Loss (S%) $27,500 $27,500 $56,800 $56,800 $57,375 $58,153 $58,153 $58,962 $59,539 $59,539 $60,142 $60,142
Less Revenue Loss: $Z7,500 $27,500 $56,800 $56,800 557,375 $58,153 $58,153 $58,962 $59,539 $59,539 $60,142 $60,142
Effective Renta! lncome 5522,500 $522,500 $1,079,200 $1,079,200 $1,090,125 $1,104,902 $1,104,902 $1,120,285 $1,131,240 $1,131,240 $1,142,691 $1,142,691
CAM $100,000 $200,000 $400,000 $500,000 $600,000 $606,000 $606,000 $612,000 $618,120 $618,120 $624,240 $624,240
Other Income - TIF PAY-GO $22,483 $61,145 $125,863 $190,581 $222,940 $239,119 $239,119 $239,119 $239,119 $119,560 $0 $0
Effective Gross lncome $644,983 $783,645 $1,605,063 $1,769,781 $1,913,065 $1,950,021 $1,950,021 $1,971,404 $1,988,479 $1,868,919 $1,766,931 $1,766,931
EXPENSES
CAM Costs $50,000 $100,000 $150,000 $200,000 $200,000 $202,000 $202,000 $204,000 $206,040 $206,040 $208,080 $208,080
Property Management Fees $15,563 $18,063 $36,980 $39,480 $42,253 $42,772 $42,772 $43,307 $43,734 $43,734 $44,173 $44,173
Reai Estate Taxes $106,344 $159,515 $319,032 $372,204 $425,376 $425,376 $425,376 $425,376 $425,376 $425,376 $425,376 $425,376
Special assessment** $80,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $40,000 $0 $0
Legal $1,000 $1,000 $2,000 $2,000 $2,000 $2,020 $2,020 $2,040 $2,060 $2,081 $2,101 $2,122
Accounting $1,000 $1,000 $2,000 $2,000 $2,000 $2,020 $2,020 $2,040 $2,060 $2,081 $2,101 $2,122
Leasing $25,500 $25,500 $51,000 $51,000 $51,000 $54,328 $54,328 $58,963 $59,539 $59,539 $60,141 $60,141
Total Expenses $279,407 $485,078 $741,012 $846,684 $902,629 $908,516 $908,516 $915,726 $918,809 $778,851 $741,972 $742,014
Net Operating Income $365,576 $298,567 $864,051 $923,097 $1,010,436 $1,041,505 $1,041,505 $1,055,678 $1,069,670 $1,090,068 $1,024,959 $1,024,917
Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
NOI After Reserves $365,576 $298,567 $864,051 $923,097 $1,010,436 $1,041,505 $1,041,505 $1,055,678 $1,069,670 $1,090,068 $1,024,959 $1,024,917
NOI After Reserves without Pay-Go $343,093 $237,422 $738,188 $732,516 $787,496 $802,386 $802,386 $816,559 $830,551 $970,509 $1,024,959 $1,024,917
Project Costs with Assistance 6,154,200 6,154,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200
Project Costs without Assistance 6,154,200 6,154,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200 12,198,200
ROR with Assistance 5.9% 4.9% 7.1% 7.6% 83% 8.5% 8.5% 8.7% 8.8% 8.9% 8.4% 8.4%
ROR without Assistance 5.6% 3.9% 6.1% 6.0% 6.5% 6.6°/o 6.6°/o 6.7% 6.8% 8.0°/o 8.4% 8.4%
' Developer notes that minimum unleverage rate of return must equa17.5 to 10%.
See Phase I and Phase ll Oper Pro Forma for additiona! notes.
� xct�zrr��.nr�a sr�aztct�a
2/23/2012 3o�o�ai eraYsc�: 4�e�oaa .
For Preliminary Discussion Purposes Only
SPOWD Development, LLC
10-Year Operating Pro Forma
TIF 14, Apple Valley, MN
Year 1 2 3 4 5 6 7 8 9 10
TaxesPayable Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Adjusting Rate Office 0.00% 2.00°k 4.00°� 2.00°k
Adjusting Rate Warehouse O.00�o 2.00�o 2.00% 2.00%
Office (square footage) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Warehouse (square footage) 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
INCOME
Office $218,750 $218,750 $223,125 $223,125 $223,125 $232,050 $232,050 $232,050 $236,691 $236,691
Warehouse $356,250 $356,250 $363,375 $363,375 $363,375 $370,643 $370,643 $370,643 $378,055 $378,055
Gross Potential Rents $0 $0 $575,000 $575,000 $586,500 $586,500 $586,500 $602,693 $602,693 $602,693 $614,746 $614,746
Vacancy/Loss (5%) $28,750 $28,750 $29,325 $29,325 $29,325 $30,135 $30,135 $30,135 $30,737 $30,737
Less Revenue Loss: $0 $0 $28,750 $28,750 $29,325 $29,325 $29,325 $30,135 $30,135 $30,135 $30,737 $30,737
Effective Renta( Income $0 $0 $546,250 $546,250 $557,175 $557,175 $557,175 $572,558 $572,558 $572,558 $584,009 $584,009
CAM $100,000 $200,000 $300,000 $300,000 $300,000 $306,000 $306,000 $306,000 $312,120 $312,120
Other Income - TIF PAY-G0 $0 $0 $41,954 $81,678 $111,470 $119,560 $119,560 $119,560 $119,560 $59,780 $0 $0 % 7 7 �� � 2 Z
Effective Gross lncome $0 $0 $688,204 $827,928 $968,645 $976,735 $976,735 $998,117 $998,117 $938,338 $896,129 $896,129
EXPENSES
CAM Costs $50,000 $100,000 $100,000 $100,000 $100,000 $102,000 $102,000 $102,000 $104,040 $104,040
Property Management Fees $16,156 $18,656 $21,429 $21,429 $21,429 $21,964 $21,964 $21,964 $22,403 $22,403
Real Estate Taxes $105,281 $160,048 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688
Special assessment� $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Legal $1,000 $1,000 $1,000 $1,000 $1,000 $1,020 $1,020 $1,020 $1,040 $1,061
Accounting $1,000 $1,000 $1,000 $1,000 $1,000 $1,020 $1,020 $1,020 $1,040 $1,061
Leasing $25,500 $25,500 $25,500 $25,500 $25,500 $30,135 $30,135 $30,135 $30,737 $30,737
Total Expenses $0 $0 $198,937 $306,204 $361,617 $361,617 $361,617 $368,827 $368,827 $368,827 $371,948 $371,990
Net Operating [ncome $0 $0 $489,268 $521,724 $607,028 $615,118 $615,118 $629,290 $629,290 $569,511 $524,181 $524,139
Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
NOl After Reserves $0 $0 $489,268 $521,724 $607,028 $615,118 $615,118 $629,290 $629,290 $569,511 $524,181 $524,139
NOl After Reserves without Pay-Go $0 $0 $447,313 $440,046 $495,558 $495,558 $495,558 $509,731 $509,731 $509,731 $524,181 $524,139
Project Costs with Assistance 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000
Project Costs without Assistance 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000 6,044,000
ROR with Assistance 8.1% 8.6% 10.0% 10.2% 10.2% 10.4% 10.4% 9.4% 8.7% 8.7%
ROR without Assistance 7.4% 7.3% 8.2% 8.2% 8.2% 8.4% 8.4% 8.4% 8.7% 8.7%
1 Developer notes that minimum unleverage rate of return must equa17.5 to 10%.
� �1l�RTH4Ak�O STRATEGIP.,S
2/23/2012 xasc�o�? vr¢4ac.. G+�aup
For Preliminary Discussion Purposes Only
SPOWD Development, LLC
10-Year Operating Pro Forma
TIF 14, Apple Valley, MN
Year 1 2 3 4 5 6 7 8 9 10 11 12
Taxes Payable Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2025
Adjusting Rate Office 0.00% 2.00% 4.00% 2.00%
Adjusting Rate Warehouse 0.009�0 2.00% 2.00% 2.00Y
Office (square footage) 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Warehouse (square footage) 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
1NCOME
Office $212,500 $212,500 $216,750 $216,750 $216,750 $225,420 $225,420 $225,420 $229,928 $229,928 $229,928 $229,928
Warehouse $337,500 $337,500 $344,250 $344,250 $344,250 $351,135 $351,135 $351,135 $358,158 $358,158 $358,158 $358,158
Gross Potential Rents $SS0,000 5550,000 5561,000 $561,000 8561,000 $576,555 $576,555 5576,555 $588,086 $588,086 8588,086 $588,086
Vacancy/Loss (5%) $27,500 $27,500 $28,050 $28,050 $28,050 $28,828 $28,828 $28,828 $29,404 $29,404 $29,404 $29,404
Less Revenue Loss: $27,500 $27,500 $28,050 $28,050 $28,050 $28,8�8 $28,828 528,828 $29,404 $29,404 $29,404 $29,404
E(fective Rental Income 8522,500 $522,500 $532,950 $532,950 $532,950 $547,727 $547,727 $547,727 $558,682 $558,682 $558,682 5558,682
CAM $100,000 $200,000 $300,000 $300,000 $300,000 $306,000 $306,000 $306,000 $312,120 $312,120 $312,120 $312,120
Other Income - TIF PAY-G0 $22,483 $61,145 $83,909 $108,904 $111,470 $119,560 $119,560 $119,560 $119,560 $59,780 $0 $0 '_ � �-�,� � �
Effective Gross Income 5644,983 $783,645 4916,859 $941,854 5944,420 $973,287 5973,287 $973,287 $990,361 $930,582 $870,802 $870,802
EXPENSES
CAM Costs $50,000 $100,000 $100,000 $100,000 $100,000 $102,000 $102,000 $102,000 $104,040 $104,040 $104,040 $104,040
Property Management Fees $15,563 $18,063 $20,824 $20,824 $20,824 $21,343 $21,343 $21,343 $21,770 $21,770 $21,770 $�1,770
Insurance
Real Estate Taxes $106,344 $159,515 $213,751 $212,156 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $z12,688 $212,688
Special assessments to property $80,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $180,000 $40,000
Legal $1,000 $1,000 $1,000 $1,000 $1,000 $1,020 $1,020 $1,020 $1,040 $1,061 $1,061 $1,061
Accounting $1,000 $1,000 $1,000 $1,000 $1,000 $1,020 $1,020 $1,020 $1,040 $1,061 $1,061 $1,061
Leasing $25,500 $25,500 $25,500 $25,500 $25,500 $28,828 $28,828 $28,828 $29,404 $29,404 $29,404 $29,404
Total Expenses $279.407 $485,078 $542,075 $540,480 $541,012 $546,899 $546,899 $546,899 $549,982 5430,024 $370,024 5370,024
Net Operating Income $365,576 $298.567 $374,783 $401,373 $403,408 5426,388 $426,388 $426,388 $440,379 $520,558 5500,778 $500,778
Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
NOI After Reserves $365,576 $298,567 $374,783 $401,373 $403,408 4426,388 $426,388 $426,388 $440,379 $520,558 $500,778 $500,778
NOI After Reserves without Pay-Go $343,093 $237,422 $290,875 $292,470 $291,938 $306,828 $306,828 $306,828 $320,820 $460,778 5500,778 $500,778
Project Costs with Assistance 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200
Projed Costs without Assistance 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,200 6,154,100
RORwithAssistance 5.9% 4.9% 6.1% 6.5% 6.6% 6.9% 6.9% 6.9% 7.2% 8.5% 8.1% 8.1%
RORwithoutAssistance 5.6% 3.9% 4.7% 4.8% 4.7% 5.0% 5.0% 5.0% 5.2% 7.5% 8.1% 8.1%
1 Developer notes that minimum unleverage rate of return must equal 7.5 to 10%.
2 Estimate for amount of annual assessment of $1,300,000 payable over 10 years at an agreed to fixed payment schedule.
�uaaxN�a:vcr srenrec,dts
2/23/2012 . � #�+e�o� P= � cr. �ro��ru� .
For Preliminary Discussion Purposes Only
SPOWD Development, LLC
Development and Capital Pro Forma
TIF 14, Apple Valley, MN
Submited by Developer Updated by City for Discussion Difference
PHA E I PHASE II COMBINED PHASE I PHASE II COMBINED
Building Square FooWge 100,000 100,000 200,000 100,000 100,000 200,000 -
PROJECT COSTS
SITE COSTS - All Amount � � � Qita9S14S Amount
Site Acquisition $275,000 $275,000 $550,000 $275,000 $275,000 $550,000 $0
Environmental $0 $0 $0 $0 $0 $0 $0
Property Survey Cost $0 $0 $0 $0 SO $0 $0
TOTAI LAND COSTS $275,000 $275,000 $550,000 $275,000 $275,000 $SS0,000 $0
BUILDING COSTS �
Site Work $100,000 $100,000 $200,000 $100,000 $100,000 $200,000 $0
Shell $3,550,000 $3,550,000 $7,100,000 $3,550,000 $3,550,000 $7,100,000 $0
Tenant Improvements $1,550,000 $1,550,000 $3,100,000 $1,550,000 $1,550,000 $3,100,000 $0
Parking $0 $0 $0 $0 $0 $0 $0
Landscaping $20,000 $20,000 $40,000 $20,000 820,000 $40,000 $0
Construdion Contingency (10%) $0 $0 $0 $0 $0 $0 $0
TOTAL BUILDING COSTS =5,220,000 $5,220,000 $10,440,000 $5,220,000 $5,220,000 $10,440,000 $0
TOTAL SITE/BUILDING COSTS - ALL 55,495,000 $5,495,000 510,990,000 $5,495,000 $5,495,000 $10,990,000 $0
SOPT COSTS & ADMINISTRATIVE
Architectural & Design $30,000 $30,000 $60,000 $30,000 830,000 $60,000 $0
Insurance $15,000 $15,000 $30,000 $15,000 $15,000 $30,000 $0
Leasing $50,000 $50,000 $100,000 $50,000 $50,000 $100,000 $0
Financing Interim Costs $125,000 $125,000 $250,000 $125,000 $125,000 $250,000 $0
Financing Permanent Costs $75,000 $75,000 $150,000 $75,000 $75,000 $150,000 $0
Advertising and Marketing Costs $0 $0 $0 $0 $0 $0 $0
Trunk Utility Fees - Sanitary Sewer $0 $0 $0 $5,700 $0 $5,700 $5,700
Trunk Utility Fees - Water $0 $0 $0 $27,000 $0 $27,000 $27,000
Trunk Utility Fees - Storm Sewer $0 $0 $0 $91,000 $0 $91,000 $91,000
Building Permit $25,000 $25,000 $50,000 $52,000 $58,000 $110,000 $60,000
SAC Charge due with Building Permit $0 $0 $0 $62,000 $66,000 $128,000 $128,000
WAC due with Building Permit $0 $0 $0 $17,500 $19,000 $36,500 $36,500
Park Dedication Fee $0 $0 $0 $9,000 $11,000 $20,000 $20,000
Su6tota( City Deve(opment Fees $15,000 $25,000 $50,000 $264,200 $154,000 $418,200 $368,200
City Street Assessments - 147th Street $650,000 $650,000 $1,300,000 $1,300,000 $0 $1,300,000 $0
City Street Assessments - Flagstaff Court $400,000 $400,000 $800,000 $0 $0 $0 ($800,000)
Special Assessments (Paid Annually) $0 $0 $0 ($1,300,000) $0 ($1,300,000) ($1,300,000)
SubrotalSpecia(ASSessmentr $1,050,000 $1,050,000 $2,100,000 SO SO $0 ($2,100,000)
Construction Interest Expense $0 $0 $0 $0 SO $0 $0
Development Fee/Project Manager $100,000 $100,000 $200,000 $100,000 $100,000 $200,000 $0
Development Contingency (10%) SO $0 $0 $0 $0 $0 $0
TOTAL SOPT CO5T5 & ADMIN 51,470,000 51,470,000 $2,940,000 $659,200 $549,000 $1,208,200 ($1,731,800)
TOTAL DEVELOPMENT COSTS $6,965,000 $6,965,000 $13,930,000 $6,154,200 $6,044,000 $12,198,200 ($1,731,800)
TIF Contribution $1,050,000 $1,050,000 $2,100,000 $0 $0 $0 ($2,100,000)
Net Development Cost $5,915,000 $5,915,000 $11,830,000 $6,154,200 $6,044,000 $12,198,200 $368,200
Construction Loan Amount $0 $0 $0 $0 $0 $0 $0
ProjectEquity $5,915,000 $5,915,000 $11,830,000 $6,154,200 $6,044,000 $12,198,200 $368,200
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Economic Development Authority
Discussion af Business Subsidy
(TIF Assistanc�) for SPOWD Deuelapment
March �, 2Q12
NORTHLAND SECURITIES
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��� � �3�`�` The in(ormation in this yrerenmuon is 6ased on sowtes beNeved m be reliabk, 6ut dces not purport m be mmpkce and is not worranred by Nwthland Securrtie; lnc.
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• Combined value of $14M of private improvements
completed in two phases
— Phase I to begin 2012 and Phase II to begin in 2014
• Public improvements of $2.1M to be paid by
developer as part of Phase I in 2012
• Developer is seeking financial assistance from the
City to offset the costs of the public improvements
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• Project qualifies as an economic development district
under temporary legislative authority
— Construction must commence by July 1, 2012
— Requirement for creation/retention of jobs will be met
— Tax increment may be collected for up to 9 years
• Proposed use of TIF is to reimburse the Developer for
cost of public improvements that will be assessed
and/or constructed by the Developer (Flagstaff Court
' and 147th Street)
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• Project is estimated to generate $1.7 to $1.8M in tax
increment over 9 years
— Current estimate is based on 2012 tax rates recently released
from Dakota County on March 7th
Year Phase I Phase II Combined
1 47,000 47,000
2 81,000 81,000
3 120,000 64,000 184,000
4 120,000 97,000 217,000
5 126,000 126,000 252,000
6 126,000 126,000 252,000
7 126,000 126,000 252,000
- 8 126,000 126,000 252,000
"� � 9 126,000 126,000 252,000
���`��� ,; Total 998,000 791,000 1,789,000
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• Developer will incur 100% of the property's cost for public
improvements in 2012 as part of Phase I
• Developer assumes risk that Phase II improvements will
commence as planned by year 2014
• TIF from Phase II is needed to help offset public improvement
costs that will be paid in by the Developer in 2012 as part of
Phase I
• Developer has an incentive to complete Phase II
� TIF assistance will only be provided to the extent its available
��� � nd Developer assumes risk that TIF will be sufficient
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• If only Phase I is completed the estimated average annual rate
of return on investment with TIF assistance is estimated at
6.5% and without assistance 5.1%— over a 10 year period
• If both Phase I and Phase II are completed the estimated
average annual rate of return on investment increases to 7.7%
with assistance and 6.3% without assistance
• Developer is seeking additional assistance to reduce cost #or
public improvements and to improve the rate of return
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• Presently a"gap" exists between the estimated TIF the project
will generate and the cost of the public improvements
• City staff report to the EDA shows a gap of $681,000, which is
calculated as the difference between the available TIF and the
Developer's cost of the public improvements
• City staff and the Developer continue to look at options that
may further reduce this "gap"
- Review of assumptions for TIF that may increase the amount
- Other City revenue to offset Developer's cost of the public
improvements
-� Timing and interest rates for TIF Note and assessment payments
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Update on Master
Development District
Expansion and new TIF 14 -
Valley Business Campus
EDA meeting 3-8-12
•
Future Actions:
Public Hearing on March 22, 2012
• Align the existing TIF district plans (TIF #7 and #13) to the
expanded Master Development District approved in 2010.
• Public Hearing to consider creation of new TIF District (TIF # 14)
= Allowed under the "temporary authority—Jobs Bill"
• Construction must begin by 7-1-12
r Economic District with maximum life of 9 years
• Consistent with City Council / EDA priorities on road needs,
* Flagstaff extension
• 147th connection from Flagstaff to Pilot Knob
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Master Development District
prior to 2 010
CITY OF APPLE VALLEY TAX INCREMENT FINANCING DISTRICTS
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M.D. District expanded in 2010 to include
major roads and commercial nodes
MASTER DEVELOPMENT D13TRICT AND TIF DISTRIGTS
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New District — Valley Business Campus
• Summary of SPOWD Development Project—
� "Valley Business Campus"
* 2 Phases — total 200,000 Sq Ft
� 2 buildings of 50,000 ftz in each phase
� Total Building Value $ 13M
• Construction of 147th Street & Flagstaff Ct.
� TIF eligible costs of up to $2.1M plus financing
• Reimbursement in form of Pay as You go financing
• Development risk remains with SPOWD
r S A Bonds issued for 147t" — secured by Special Asmt
• Developer financing of Flagstaff Ct.
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Building Rendering
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Similar Building in other City
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Northland Securities Financial Analysis
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, 3/8/2012
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Developer Request
� SPOWD Development has requested assistance in
covering development costs associated with street costs
f Preliminary cost estimate of 147t" St =$1.3 M
� Preliminary cost estimate for Flagstaff Ct. =$800,000
• Cost to lower Pipeline (not assessed) =$1.9M
* Cost of Pipeline Easement Acquisition = not settled
•
Development cost
• Project TIF revenues constrained by the phasing of the project
and the type of development expected on the location
° Phase I generates approximately $926,000 (initial estimate)
• Phase II would generate approx. $773,000 (initial estimate)
� Assumes construction complete within two years
� Significant developer risks remains
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Gap eX1StS lri prOJ eCt (from memo)
Phase I Phase II Total
Tax Increment Generated $ 926,000 $ 773,000 $1,699,000
Project Costs:
147th Street -1,300,000 0 -1,300,000
Flagstaff Court -800,000 0 -800,000
Assessment Financing costs -280,000 0 -280,000
Total Eligible Costs -2,380,000 0 -2,380,000
Remaining Gap between Developer
Request and Revenues Generated
from the Project $ (1,454,000) $ 773,000 $ (681,000)
•
Attempts to close the Gap
Phase I Phase II Total
Remaining Gap between Developer
Request and Revenues Generated from
the Project $ (1,454,000) $ 773,000 $(681,000)
Additional Increment from 2012 final rates 72,000 18,000 90,000
Reduction in 147th Street Project Costs from
engineers estimate 110,000 110,000
Remove Flagstaff Ct. (privately installed) - I
align cost with potential revenue 800,000 (800,000) -
portion of costs associated with trunk �
utilities - not assessed 45,000 45,000
Lower assessment financing costs with lower
assessment 100,000 100,000
Remaining Gap $ (327,000) $ (9,000? $(336,000)
•
6
.
3/8/2012
�
Remaining Issues /
Direction Sought
• Significant developer risk remains for phase II
� No additional resources exist from within the district
• If construction not begun by 7-1-12 — no TIF district allowed
� Easement acquisition still needs to be completed
� Gap still remains at $327,000
� Options to address gap
° Seek to renegotiate the Assessment Agreement with neighboring
parcel, lowers assessment for 147Ln
� Direct resources from outside the district
•
Remaining Actions
• March 22, 2012 — City Council Conducts Public Hearing
• TIF plan action
• March 22, 2012 — Propose EDA meeting (prior to CC meeting)
to complete any agreements/actions
� TIF / Business subsidy agreement w/ SPOWD
� Assessment Agreement w/SPOWD
• TIF Note—reimbursement agreement
• Easement Acquisition / agreement needed to proceed
• Reach agreement with SPOWD
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City of A►pp MEMO
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Community Development Department
TO: President and Board Members of the Economic Development Authority,
Executive Director
FROM: Margaret Dykes, Associate City Planner
MEETING
DATE: March 8, 2012
SUBJECT: Small Business Building Improvement Program
Background
In 2010, the Legislature approved changes to Tax Increment Financing (TIF) law that allowed
the broad use of tax increment from any TIF district to assist in the construction or rehabilitation
of private development. The purpose of this legislation was to help private development begin
construction on projects that would create jobs, both temporary construction jobs and permanent
jobs. Construction on any project receiving funds from this program had to begin by July l,
2011, and all expenditures needed to be completed by December 31, 2011. This legislation was
extended in 2011 so that the construction needs to occur no later than June 30, 2012, and all
expenditures must be made by December 30, 2012. The City has requested an extension of this
TIF pooling legislation for another 12 months, and there are bills under consideration at the
Legislature that would allow this to occur. There is also some discussion at the Legislature that
the 12 month extension of the TIF pooling may be considered for state-wide implementation.
TIF pooling funds have been identified that could be used by the EDA to support local
commercial property owners who would like to make investments in their buildings in order to
attract businesses. The EDA is reviewing the feasibility of such a request for the Commons II
building. However, there are other smaller buildings where funds could be used to make
renovations to the buildings in order to expand the existing businesses in the building, or to start
a new business venture. The City has been approached by potential property owners of smaller
buildings or potential new small businesses to help assist with funds that would be used for items
that do not add value to the business. The requests for funding are desired to bring aging
buildings into compliance with current regulations, or ensure that the buildings remain viable.
One option that the EDA might use to assist these types of business would be to create a"Small
Business Building Improvement Program", which is outlined below.
Pro�ram Outline
If the EDA wanted to pursue a"Small Business Building Improvement Program", funds would
only be used to help support building improvements or additions which are necessary to improve
the usability and structural integrity of an aging commercial building, especially in buildings that
have history of high vacancy rates. Such improvements would include roof repair, electrical and
plumbing upgrades, HVAC systems, fire suppression, and similar construction. Funds would be
used only for construction or renovation purposes. The funds could not be used for refinancing
existing debt, personal property items, working capital, previously completed projects, and the ,
like. Program funds would only be available when the EDA makes them available for these
purposes. Staff believes the maximum funding should be between 10-20% of the project's
construction costs as determined by a gap analysis.
To comply with the state law TIF Pooling requirements, all work must commence by June 30,
2012, and all work supported by the funds must be completed by December 30, 2012. Funding
could be the form of a forgivable loan recorded against the property that would reduce in amount
over five years. The funds would be made to the building owner upon completion of the
improvement or renovation. Additionally, this program would be subject to Business Subsidy
law, which requires the EDA to hold public hearings on funds granted to a recipient.
Criteria that could be used to analyze the feasibility of the improvement projects might include:
• Located in a commercial area with high visibility or in existing industrial park;
• Likely to have a positive "snowball" effect on neighboring businesses;
• Part of an overall expansion project or a significant reinvestment in a building that has a
history of high vacancy rates;
• Improve the usability and structural integrity of a commercial building at least 25 years
old;
• Address the safety of employees and customers;
• Allow new businesses to occur that create new jobs in Apple Valley, including both
construction and permanent jobs;
• Program funds max out at 10-20% of construction project costs.
Potential Proiects
The City has been approached by two business owners that have requested help with the
following projects:
1. 7600-147� St. W. The potential business owner would like to open a wholesale food
operation with a small amount of retail in the former Granny's Attic building. The
approximately 14,000 sq. ft. building was constructed in 1972 and was originally used as
a racquetball club. The site has been used as a retail store (Granny's Attic), and has had a
number of owners and tenants over the years. The building has been vacant for the last
several years and is now in disrepair. The potential buyer would like assistance to help
fund a complete retrofit of the HVAC system, rewire the building, repair the roof
structure, and abate mold damage that has occurred throughout the structure. The
potential new business owner states the total project costs are approximately $610,000;
he is requesting assistance in the amount of $104,750. Site plan review is not required
there is no expansion of the existing structure.
2. 5885-149�' St. W. — There is a potential buyer for this approximately 41,500 sq. ft.
warehouse building, which was constructed in 1989. Most of the building known as
Venstar 15 is vacant, and the potential buyer would like to convert approximately 18,000
sq. ft. of the building into an aquatic training facility that would include an 8-lane pool,
bleachers, locker rooms, and some office areas. In order to renovate the building for such
a use, the potential buyer states the roof would need to be removed and support structures
widened to accommodate the in-ground pool. The potential buyer has also stated there
has been some mold in the structure. The potential buyer believes the total project cost is '
approximately $2 million. He believes if assistance could be provided in a range of
$150,000 to $200,000, he would be able to start the new business. Site plan review is not
required there is no expansion of the existing structure.
2
H:\Economic Dev. Projects\Small Business Building Program�EDA memo.docx
There are two other projects that might also be considered if a program were implemented:
1. 7707-149 St. W. — The owner of Valley Bike and Ski has stated he would like to expand
his successful business but has not done so because the building would be required to
have a sprinkler system installed. Though he would not be expanding the building, the
fact that he would be taking over additional vacant tenant space necessitates the need for
sprinklers in the new space. This is due to a change in the Building Code. The estimated
cost for the sprinkler system is approximately $20,000. The building owner recognizes
the sprinkler system is necessary, but the additional expense does not add value to the
business.
2. 7525-148 Street W. — The City received a grant in 2010 from the Dakota County
Community Development Agency (CDA) for improvements to be made to the Time
Square Shopping Center. The City had requested $250,000, but the CDA awarded
$78,700. The grant is to be used for parking lot improvements, a pedestrian path from
the shopping center to the existing trail on Cedar Avenue, and building exterior
improvements including building refacing and a courtyard gathering area. The building
owner would like to make the improvements but has been unable to begin construction on
the project because he has had difficulty obtaining sufficient financial resources to fill the
gap between the grant amount requested and the grant received.
Additional analysis of the buildings in terms of condition, and review of financing need would be
part of any application process. Staffbelieves these two construction projects could� be ramped
up within 90 days so that they would be eligible for the TIF pooling funds. It should be noted
that if the projects cannot start by June 30 the projects would not be able to receive funds.
Attached to this memo is a draft application to gather the information from potential projects.
Requested Action
Staff is requesting feedback from the EDA whether a Small Business Building Improvement
Program as outlined in the staff report is worth pursuing, and if using TIF pooling funds is
appropriate.
3
H:1Economic Dev. Projects\Small Business Building Program\EDA memo.docx
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
SMALL BUSINESS BUILDING IMPROVEMENT LOAN APPLICATION
1. The Business is a:
New Business or Startup Existing Business
2. If Business is existing, how many years in business?
3. The Business is primarily:
Type of Industrv: Check One Please Describ�Your Business:
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5. How many employ�e� will the t�i�siness errtpi�iy upon completion of the project?
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Minimum Wage: Benefits Minimum Wage: Benefits:
7. Please describe your project. Please describe in particular those portions of the project that
help to explain why a request for economic development assistance is sought from the
Apple Valley Economic Development Authority.
1
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
SMALL BUSINESS BUILDING IMPROVEMENT LOAN APPLICATION
8. Please include contractors bid and diagram or photo if applicable. Also, provide total
estimated project costs
Land Acquisition $
Site Development $
Building Costs $
Equipment $
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Architectural & Engineering Fees $ � "�= �
Legal Fees � � � $ �� ��.
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Financing Costs $ � � �,� ���,�,
Broker Costs $
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Other (please specify) $ �°�
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Total � � _ , $ �
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9. Is this project part of a� ���rall commereial exp�n�tc�n? Ple�s�.ze�xplain.
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� 10. If the project is for bu�dtng coct���nd/or life/s���ty improvements, please �explain the extent
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11. What�i� f.�ie estimated ct?rnpletion dat��for the project? � �
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12. Please outline thr�ources t���nds being utilized �for the proposed project. � � �
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Bank financing: �s�. � $ % of Total:
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Owner equity (must be present): $ % of Total:
Financing Requested from City (gap): $ % of TotaL•
Total: $
13. What is the financial gap and the reason for seeking public resources in support of this
project?
2
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
SMALL BUSINESS BUILDING IMPROVEMENT LOAN APPLICATION
Gap Amount: $
Reason:
14. Please describe why City financing is necessary to complete the project, such as building
obsolescence, Minnesota State Building Code compliance, improvements related to safety,
accessibility, habitability, and energy consumption.
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3
�'D� � 3/8/2012
Small Business Building
Improvement Program
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Presentation to Economic Development Authority
March 8, 2012
Expanded TIF Legislation
• 2010—Changes to Tax Increment Financing law
• Allowed broad use of tax increment from any TIF district to assist
in the construction or rehabilitation of private development.
• Purpose: Help private development construct projects that
would jobs - both temporary construction jobs and
permanent jobs.
• Construction start by July 1, 2011; funds spent by December 31,
2011.
• 2011— Legislation extended
• Construction must start by July 1, 2012, funds spent by December
30, 2012.
1
3/8/2012
TIF Pooling Funds
• TIF Pooling Funds have been identified.
• EDA and City have authorized use of funds for 147tn
Street extension, Flagstaff Avenue extension.
• EDA will be asked later this month to review request for
rehab of Downtown office building.
• Could remaining funds be used to help smaller
businesses and property owners?
• To bring aging buildings into compliance with current regulations, - -
� or ensure that buildings remain �viable by bringing new businesses �����
to area or allow existing ones to expand. �' �
� Potential Program Outline �
• Support only those construction or renovation necessary to
improve usability and structural integrity of an aging commercial
building, especially those with history of high vacancy rates.
• Roof repair
• Electrical and plumbing upgrades
• HVAC systems
• Could not be used to refinance existing debt, personal property
items, working capital, previously completed projects, and the
like.
• Program funds only available when the EDA makes them
available.
• Maximum funding between 10-20%a of project's construction
� costs as determined by a gap analysis. � °��
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• Project must start by 6/30/12; completed by 12/31/12.
2
3/8/2012
Project Ana�ysis
Projects must meet following criteria:
• Located in commercial area with high visibility or in existing
industrial park;
• Likely to have a positive "snowball" effect on neighboring
businesses;
• Part of an overall expansion project or a significant
reinvestment in a building with history of high vacancy rates;
• Improve usability and structural integrity of a commercial
building at least 25 years old;
• Address safety of employees and customers;
• Allow new businesses to occur that create new jobs in Apple
Valley, including both construction and permanent jobs;
Potential Proj ects
• 7600-147t" St. W.
• Former Granny's Attic; approximately 14,000 sq. ft. ; constructed in
1972
• Potential Use: Wholesale food operation with small amount of retaiL
• vacant for the last several years ; now in disrepair.
• Assistance to retrofit HVAC system, rewire the building, repair the
roof structure, and abate mold damage that has occurred
tMroughout the structure.
• Total project costs: approximately $610,000;
• Request: $104,750. ��. r _ � �r � J���
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3/8/2012
Potential Proj ects
• 5885-149th St. W. (Venstar 15)
• Approx. 41,500 sq. ft. warehouse building; constructed in 1989.
• Most of building is now vacant
• Potential Use: Convert approx. 18,000 sq. ft. into aquatic training
facility •
• 8-lane pool, bleachers, locker rooms, and some office areas.
• Assistance to remove roof and support structures to accommodate
the in-ground pool; and abate some mold.
• Total project cost: Approximately $2 million.
• Request: $150,000 to $200,000
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� � Potential Proj ects � � � � �
• 7707-149t" St. W. (Valley Bike and Ski)
• Approx. 12,000 sq. ft.; constructed in 1976
• Owner would like to expand successful business into vacant space
in building.
• Has not expanded because new building sprinkler system must
installed.
• Change of use per Building Code.
• Estimated cost: Approx. $20,000.
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3/8/2012
Potential Proj ects
• 7525-148th Street W. (Time Square)
• City received CDA grant in 2010 to support improvements at
shopping center.
• City had requested $250,000; awarded $78,700
• Funds to support parking lot improvements, a pedestrian path to
existing trail on Cedar Avenue, and building exterior improvements
including building refacing and a courtyard gathering area.
• Building owner has not started construction due to difficuity
obtaining sufficient financial resources to fill the gap of $171,300
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uestions
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5
CITY OF APPLE VALLEY
ORDER FOR SPECIAL BOARD MEETING
I, Larry S. Severson, President of the Apple Valley Economic Development
Authority (EDA), hereby order that a special informal meeting of the EDA be held at
Apple Valley Municipal Center, 7100 147th Street W., on Thursday, the 8th day of
March, 2012, at 4:30 o'clock p.m., to discuss changes to the Master Development
District to include TIF District 14 and modifying TIF Districts 7 and 13 to reflect the
Expanded Master Development District, receive updates on various projects and any
other items that may come before the Board.
In accordance with this order, the Secretary is requested to provide notice of
this meeting following the requirements of the By-laws.
DATED this Sth day of March, 2012.
erson, President