HomeMy WebLinkAbout2012-05-07 Regular Meeting PacketCity of Apple ll
Valley
1. Call to Order
2. Approval of Agenda
3. Resolution Appointing Officers for 2012
4. Approval of Minutes of April 26, 2012
5. Continue Public Hearing: Authorize Business Assistance Policy
6. Authorize Tax Increment Financing (TIF) Policy
7. Adopt Resolution Approving Amended Master Development District and
Establishment of TIF District 14
8. Authorize Development Assistance Agreement for Bluewater Capital Management 11,
LLC; aka Wise Aquatic Facility — 5885 — 149 Street W.
9 Adopt Resolution Authorizing the Execution of a Certificate of Completion to Shervoss
Company, Inc., Developer of the Americinn and Old Chicago Hotel, Restaurant, and
Conference Center
10. Greater MSP Annual Report and Request for Membership Renewal
11. Legislative and Project Updates
HF 2337
• Stream Global
• Station Stops on Cedar
12. Other items
13. Adjourn
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NOTICE: The Apple Valley Economic Development Authority will hold a
special meeting at the Municipal Center, on Monday, May 7, 2012, at
3:00 p.m. to consider the items listed in the following agenda:
ECONOMIC DEVELOPMENT AUTHORITY MEETING
TENTATIVE AGENDA
MAY 7, 2012 — 3:00 P.M.
(Agendas are also available on the City's Internet Web Site http://www.cityofapplevalley.org)
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City of Apple
Valley
TO: Board of the Apple Valley Economic Development Authority
FROM: Joan Murphy, Department Assistant
DATE: May 2, 2012
SUBJECT: APPOINTMENT OF 2012 OFFICERS
MEMO
Community Development
E DA 3
The resolution organizing the Economic Development Authority provides that the offices of President,
Treasurer, and Secretary be elected annually. The appointments remain in effect until the Board elects
new officers. The meeting of the Economic Development Authority held February 3, 2011, the
following officers were appointed:
President Larry S. Severson
Vice-President Thomas Goodwin
Secretary Pamela J. Gackstetter
Treasurer Clint Hooppaw
Assistant Treasurer Pamela J. Gackstetter
A draft resolution is attached, with blanks to be completed, that can be adopted to appoint the 2012
officers.
Recommended Action:
Motion adopting the resolution appointing 2012 officers of the Economic Development Authority.
jm
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA-12-
A RESOLUTION APPOINTING 2012 OFFICERS
FOR THE APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS, the Board of the Commissioners of the Apple V alley Economic Development
Authority has heretofore adopted Resolution No. EDA-90-1 which provided for initial organization
of the Board and adoption of Bylaws; and
WHEREAS, said Resolution specifies that the offices of President, Treasurer, and Secretary
shall be elected annually, as required by law.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Apple
Valley Economic Development Authority that it hereby appoints and approves the following
officers of the EDA for 2012:
ADOPTED this 7th day of May, 2012.
ATTEST:
President
Vice-President
Secretary
Treasurer
Assistant Treasurer
Pamela J. Gackstetter, Secretary
Larry S. Severson, President
ECONOMIC DEVELOPMENT AUTHORITY
City of Apple Valley
Dakota County, Minnesota
April 26, 2012
Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota
County, Minnesota, held April 26, 2012, at 6:00 o'clock p.m., at Apple Valley Municipal Center.
PRESENT: Commissioners Bergman, Goodwin, Grendahl, Hamann-Roland, and Hooppaw.
ABSENT: President Severson
City staff members present were: Executive Director Lawell, City Attorney Dougherty, Associate
City Planner Dykes, Finance Director Hedberg, City Planner Lovelace, Community Development
Director Nordquist, and Department Assistant Murphy.
APPROVAL OF AGENDA
Meeting was called to order at 6:33 p.m. by Vice-President Goodwin.
MOTION: of Hamann-Roland, seconded by Hooppaw, approving the agenda for today's
meeting as presented. Ayes - 4 - Nays - 0.
MOTION: of Hooppaw, seconded by Bergman, approving continuance of the public hearing to
the next meeting on May 7, 2012. Ayes - 4 - Nays - 0.
MINUTES
MOTION: of Hooppaw, seconded by Bergman, approving the minutes of the special meeting
of December 27, 2011, as written. Ayes - 4 - Nays - 0.
DISCUSS DATES FOR THE NEXT EDA MEETING
MOTION: of Hamann-Roland, seconded by Hooppaw, approving the next meeting for
Monday, May 7, 2012 at 3:00 p.m. Ayes - 4 - Nays - 0.
PUBLIC HEARING ON BUSINESS ASSISTANCE POLICY
Community Development Director Bruce Nordquist reviewed the Business Assistance Policy.
Vice-President Goodwin opened the public hearing at 6:41 p.m.
Commissioner Hamann-Roland stated she had the opportunity to tour the Wise School expansion
and saw significant concerns and damage to the building.
LEGISLATIVE UPDATES
Executive Director Tom Lawell delivered an overview of legislative updates. He stated Peter
Coyle is requesting a letter from the City thanking The Honorable Julianne E. Ortman, Chair of
Economic Development Authority
City of Apple Valley
Dakota County, Minnesota
April 26, 2012
Page 2
the Senate Tax Committee, for her time and attention to Apple Valley legislation in crafting the
2012 Omnibus Tax Bill.
MOTION: of Hooppaw, seconded by Bergman, approving the draft letter thanking Chair
Ortman of the Senate Tax Committee. Ayes - 4 - Nays - 0.
Commissioner Grendahl arrived at 6:50 p.m.
OTHER ITEMS
Mr. Lawell provided an update of the Metropolitan Council awarding funds to spur job growth
along transitways. Apple Valley has been awarded $866,000 to assist with transit-oriented
development near the 147th Street Station Stop.
MOTION: of Hooppaw, seconded by Hamann-Roland, to adjourn. Ayes - 5 - Nays - 0.
The meeting was adjourned at 6:56 p.m.
Respectfully Submitted,
Jolt Murphy, Departme Assista "
Approved by the Apple Valley'rconomic Development Authority on
City of Apple II
Valley
TO: President and Board Members of the Economic Development Authority,
Executive Director
FROM: Margaret M. Dykes, Associate City Planner
MEETING
DATE: May 7, 2012
SUBJECT: Amendments to Business Subsidy Policy - Public Hearing and Adoption
Agenda Item
MEMO
Community Development Department
In 2000, the City Council and the Economic Development Authority (EDA) adopted a Business
Subsidy policy as required by changes to State statutes passed in 1999. The policy was amended in
2003 to deal with some additional legislative changes. Since 2003, the Legislature has made additional
changes to the governing statutes that require the EDA to update the policy.
A business subsidy is defined by State statute as any grant by local or state government agencies,
contributions of persona property, real property, infrastructure, loan rate reductions below market, any
reduction or deferral of any tax or any fee, or any preferential use of government facilities given to a
business. Certain activities are exceptions to the business subsidy statutes, such as assistance less than
$150,000, assistance for energy conservation, assistance for housing. The City and EDA has generally
not provided business subsidies except when acting as a funding conduit for other programs, such as
the Metropolitan Council's LCDA grants. Tax Increment Financing has been and continues to be the
primary business subsidy tool for Apple Valley, and one that the EDA and City Council have supported
for larger developments. However, from time to time, the EDA may wish to provide other types of
assistance that are not necessarily considered business subsidies. This provides a framework for the
EDA if it wants to consider assistance to developers of smaller projects or owners of older buildings
that want to reinvest in their buildings.
The proposed business assistance criteria make the following changes to the policy:
1. Renames the policy to cover all assistance provided to businesses, irrespective of whether it is a
business subsidy.
2. Lists eligible uses for the receipt of business assistance. The existing policy does not list
eligible uses.
3. Lists criteria for the receipt of business assistance. The existing policy does not have criteria
listed.
4. Amends the policy to set the minimum wage for jobs created above the State Minimum Wage.
The statute no longer allows the State Minimum Wage to serve as the wage floor for a business
receiving assistance.
5. Requires commitment from a business or property owner received the assistance to operate
within Apple Valley for a period of five (5) years.
6. Lists the items that must be addressed in a business assistance agreement.
Recommended Action: Open the public hearing, receive comments, and close the hearing. If
there are no outstanding issues and the EDA concurs, staff is recommending the EDA adopt
the resolution approving the Business Assistance Policy.
A 5
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2012 -
WHEREAS, Minnesota Statutes, Section 116J.993 to 116J.995 (the "Statutes") required
the adoption of criteria for the granting of business subsidies as defined in the Statutes; and
WHEREAS, the City of Apple Valley (the "City") and the Apple Valley Economic
Development Authority (the "EDA") approved the business subsidy policy on February 10,
2000; and
WHEREAS, the City and the EDA approved an amended policy on April 24, 2003; and
WHEREAS, the EDA has determined to modify the business subsidy policy in certain
respects so that it pertains to all business assistance provided by the EDA, whether the assistance
is a Business Subsidy as defined by the Statutes, and has performed all actions required by law to
be performed prior to the adoption and approval of the amended policy, including the holding of
a duly noticed public hearing on May 7, 2012.
NOW, THEREFORE, BE IT RESOLVED, by the Apple Valley Economic Development
Authority that the amended business subsidy policy, now referred to as the "Business Assistance
Policy" and attached as Exhibit A of this resolution, is hereby approved.
ATTEST:
ADOPTED this 7t1 of May, 2012.
Pamela J. Gackstetter, Secretary
Larry S. Severson, President
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approving business assistance policy.docx
CERTIFICATE
I, Pamela Gackstetter, Apple Valley Economic Development Authority Secretary, hereby
certify that the forgoing is a true and correct copy of a resolution adopted by the Apple Valley
Economic Development Authority on May 7, 2012, the original of which is in my possession,
dated this day of , 2012 .
Pamela J. Gackstetter, Secretary
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approving business assistance policy.docx
SECTION 1. PURPOSE
CITY OF APPLE VALLEY
BUSINESS ASSISTANCE POLICY
Adopted: February 10, 2000
Amended: April 24, 2003
Amended: , 2012
The purpose of the policy is to establish guidelines and criteria for the use of business subsidies
as defined in the Business Subsidies Act (the "Act"), found in Minnesota Statutes, Chapter 116J.
This policy shall be used as a guide in processing and reviewing applications requesting business
assistance as may be provided by the Apple Valley Economic Development Authority (the
'EDA"). Terms used in this Policy are intended to have the same meanings as used in the Act.
In accordance with the Act, all business assistance requests must comply with applicable State
Statutes.
The EDA shall have the option of amending or waiving sections of this Policy when determined
necessary or appropriate. Minnesota Statutes 116J.994, Subd. 2, allows the EDA to deviate from
its criteria by documenting in writing the reason for the deviation and attaching a copy of the
document to its next annual report to the Minnesota Department of Employment and Economic
Development.
SECTION 2. ELIGIBLE USES FOR THE RECEIPT OF BUSINESS ASSISTANCE
The EDA will consider business assistance for developments and projects that demonstrate a
financial need, and meet one or more of the following uses:
1. Increase the local job base, retain local jobs, and provide diversity in that job base.
2. Address building decline and encourage redevelopment in the commercial and industrial
areas of the City in order to encourage high levels of property maintenance and private
reinvestment in those areas.
3. Increase property values and the City' tax base to ensure the long-term ability of the City to
provide adequate services for its residents while lessening the reliance on residential
property tax.
4. Increase the local business and industrial market potential of the City.
5. Encourage additional unsubsidized private development in the area, either directly, or
through secondary "spinoff' development.
6. Offset unusual and/or extraordinary costs of redevelopment, over and above the costs that a
developer would incur in normal development, such as the remediation of contaminated
sites.
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7. Accelerate the development process and to achieve development on sites that would not be
developed without assistance.
8. Encourage full utilization of existing or planned public infrastructure improvements, such as
streets, sewers, water, fiber optic, transit and transportation, and energy technologies.
9. Meet the following housing related uses, particularly in mixed use commercial projects:
a. Provide a diversity of housing not currently provided by the private market.
b. Provide a variety of housing alternatives and housing choices.
c. Promote affordable housing for low or moderate income individuals.
d. Promote neighborhood stabilization and revitalization by the removal of declining
buildings and the upgrading in existing housing stock in residential areas.
SECTION 3: BUSINESS ASSISTANCE PROJECT THRESHOLD CRITERIA
Projects to be considered by the EDA shall meet the following criteria. However, it should not
be presumed that a project meeting these criteria will be approved. Meeting these criteria creates
no obligation of the EDA to provide assistance.
Any assistance shall be provided within applicable legislative restrictions of the State, State
Auditor interpretations, debt limit guidelines, and other appropriate financial requirements
and policies.
2. The project should meet one or more of the uses identified in Section 2, Eligible Uses for
the Receipt of Business Assistance.
3. The project must be consistent with the City's Comprehensive Plan and Zoning Ordinances
to secure assistance.
4. Assistance will be provided only to projects that cannot financially proceed without benefit
of the assistance. Assistance will not be provided solely to broaden a developer's profit
margins on a project, or to support speculative projects. Prior to required public actions, the
EDA may undertake an independent financial analysis of the project, at the applicant's cost,
to ensure that the request for assistance is needed, feasible, and reasonable.
5. Business assistance will be considered only if the applicant and the project are financially
sound.
6. Prior to approval of business assistance, the applicant shall provide to the EDA any required
market and financial feasibility studies, appraisals, soil boring information provided to
private lenders for the project, and other information or data that the EDA or its financial
consultants may require.
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7. Any applicant requesting business assistance should be able to demonstrate a history of
successful operation or general development capability as well as specific capability in the
type, size, and scope of development proposed.
8. New business ventures and development will be considered on the strength of the operations
and development investment team acting together as the applicant.
9. The applicant must retain ownership or control of the project for a period long enough to
complete project construction, stabilize its occupancy, establish the project management,
and repay the business assistance, if repayment is required.
10. The level of business assistance funding will be reduced to the lowest possible level and
least amount of time by maximizing the use of private debt and equity financing first, and
other funding sources or income producing vehicles that can be structured into the project
financing, prior to using business assistance funding.
SECTION 4: BUSINESS ASSISTANCE PROJECT EVALUATION CRITERIA
If an applicant meets the criteria in Section 3 and is determined to be eligible for assistance, the
following criteria will be used to determine the amount of assistance and type of assistance that
may be provided.
1. All development proposals should optimize the private development potential of a site. An
occupied property must experience an increase of at least 25% of property valuation as a
result of the investment spurred by the subsidy. A currently vacant property must
experience an increase of at least 200% of property valuation as a result of the investment
spurred by the subsidy.
2. All business assistance projects, regardless of whether they are considered Business
Subsidies by the Act, must meet the "but for" test. Assistance will not be provided unless,
in the sole determination of the EDA, that without assistance the project could not proceed
in the manner as proposed.
3a. A development project receiving any business assistance must commit to continue to own
and operate the facility benefitting from the assistance within the City of Apple Valley for a
period of five (5) years after the date the assistance is provided. Upon any sale of the
project or property receiving assistance, the transfer must be approved by the EDA.
3b. A tenant receiving any business assistance must commit to continue to maintain and operate
the business benefitting from the assistance within the City of Apple Valley for a period of
five (5) years after the date the assistance is provided
4. A business subsidy must result in the creation or retention of jobs, unless the EDA identifies
an alternate public purpose in addition to tax base increase as identified in Section 2. If after
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a public hearing, the creation or retention of jobs is determined not to be a goal, the wage
and job goals may be set at zero.
5. Recipients of business assistance requiring the creation or retention of jobs will be required
to meet the following job and wage goals:
a. Wage and job goals will be set forth specifically in the business assistance agreement.
b. Benefitting businesses shall pay wages to full-time and part-time employees in an
amount not lower than 110% of the State Minimum Wage that is in effect at the time of
the granting of assistance.
6. Some criteria, by their very nature, must remain subjective. However, wherever possible
"benchmark" criteria have been established for review purposes. The fact that a given
proposal meets one or more "benchmark" criteria does not mean that it is entitled to funding
under this policy, but rather that the EDA is in a position to proceed with evaluations of (and
comparisons between) various business assistance proposals, using uniform standards
whenever possible.
SECTION 5: ASSISTANCE AGREEMENT AND APPLICATION
1. Each entity receiving business assistance shall enter into a business assistance agreement
with the EDA, which will include, but not be limited to the following:
a. Description of the assistance;
b. Statement of the public purpose;
c. Statement of the reason why the assistance is needed;
d. Goals for the assistance including the number of jobs created or retained and the wages
and benefits;
e. Description of the financial obligation of the recipient if the goals are not met and
conditions under which the subsidy must be repaid in all or part;
f. Commitment to continue operations as described in Section 4(3);
g. Provisions securing repayment of the assistance in the event of default or failure to meet
the goals; and
h. Reporting requirements of the recipient to the EDA and the State as detailed in the Act.
2. The business assistance agreement may be amended from time to time as the parties may
agree. Any such amendment must be in writing and signed by both parties. The business
assistance agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and assigns. The business assistance agreement shall be recorded in
the Office of the Dakota County Recorder or Registrar of Titles.
3. Applications for business assistance shall be made on forms provided by the EDA. A
deposit shall accompany the application to cover any legal, administrative, and other costs
necessary to review the request. The deposit amount shall be noted on the application form.
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CITY OF APPLE VALLEY
BUSINESS SUBSIDY POLICY
This Policy is adopted for purposes of the business subsidies act (the "Act"), which is
Minnesota Statutes, Sections 116J.993 through 116J.995. Terms used in this Policy are intended
to have the same meanings as used in the Act, and this Policy shall apply only with respect to
subsidies granted under the Act if and to the extent required thereby.
While it is recognized that the creation of good paying jobs is a desirable goal which
benefits the community, it must also be recognized that not all projects assisted with subsidies
derive their public purposes and importance solely by virtue of job creation. In addition, the
imposition of high job creation requirements and high wage levels may be unrealistic and
counter-productive in the face of larger economic forces and the financial and competitive
circumstances of an individual business.
With respect to subsidies, the determination of the number of jobs to be created and the
wage levels thereof shall be guided by the following principles and criteria:
• A currently occupied property must experience an increase of at least 25% of property
valuation as a result of investment spurred by the subsidy. A currently vacant property
must experience an increase of at least 200% of property valuation as a result of
investment spurred by the subsidy.
• In cases where the objective is the retention of existing jobs, the recipient of the subsidy
shall be required to provide reasonably demonstrable evidence that the loss of those jobs
is imminent.
O The setting of wage and job goals must be sensitive to prevailing wage rates, local
economic conditions, external economic forces over which neither the grantor nor the
recipient of the subsidy has control, the individual financial resources of the recipient, and
the competitive environment in which the recipient's business exists. At a minimum, all
newly created or retained jobs shall pay at least the minimum federal hourly wage in
effect at the time the subsidy is approved.
• Because it is not possible to anticipate every type of project which may, in its context and
time, present desirable community building or preservation goals and objectives; the
governing body must retain the right, in its discretion, to approve projects and subsidies
which may vary from the principles and criteria of this Policy. A deviation from the
criteria may occur when documentation in writing is provided which lists the reason for
the deviation and when this documentation is attached to the next annual report to the
Minnesota Department of Trade and Economic Development. For special projects where
job creation is neither a principal or accessory role, it may be permitted under this section
without any specific wage or job goals, as may be permitted by applicable law, after a
public hearing to consider the question is held.
Adopted by:
APPLE VALLEY ECONOMIC
DEVELOPMENT AUTHORITY
April 24, 2003
Date of public hearing: April 24, 2003
APPLE VALLEY CITY COUNCIL
April 24, 2003
Date of public hearing: April 24, 2003
Business Assistance
Policy Amendments
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Apple 1 ,
Valley
Apple Valley EDA
May 7, 2012
History
• 2000— City Council and EDA adopt Business Subsidy
policy.
• Required by changes in State statute.
• 2003 — Policy amended to deal with additional changes
in State law.
• Policy has not been amended since then.
1
Policy Review
• Current EDA policy covers business subsidies defined by statute
as "any grant by Iocal or state government agencies,
contributions of persona property, real property, infrastructure,
loan rate reductions below market, any reduction or deferral of
any tax or any fee, or any preferential use of government
facilities given to a business."
• Certain activities are exceptions:
• assistance less than $15OOOO
• assistance for energy conservation
• assistance for housing
Policy Amendments
• Renames the policy to cover all assistance provided to
businesses, irrespective of whether it is a business subsidy.
• Lists eligible uses for the receipt of business assistance.
• The existing policy does not list eligible uses.
• Lists criteria for the receipt of business assistance. The existing
policy does not have criteria Iisted.
• Sets the minimum wage forjobs created above the State
Minimum Wage. The statute no Ionger aliows the State
Minimum Wage to serve as the wage floor for a business
receiving assistance.
• Requires commitment from a business or property owner that
received the assistance to operate within Apple Valley for a
period of five (5) years.
• Lists the items that must be addressed in a business assistance
agreement.
2
Recommended Action
• Receive public comments, and close
hearing.
• Adopt resolution approving Draft policy
amendments.
3
TO:
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City of Apple
FROM: Margaret M. Dykes, Associate City Planner
MEETING
DATE: May 7, 2012
MEMO
Community Development Department
President and Board Members of the Economic Development Authority,
Executive Director
SUBJECT: Adopting Revisions to EDA's Tax Increment Financing Policy
Agenda Item A 40
The City of Apple Valley began using Tax Increment Financing (TIF) as an economic
development tool in 1982. In 1988, the Economic Development Authority (EDA) adopted a
policy for the use of TIF. This policy was amended in 1990 to account for the transfer of duties
from the City Council to the EDA, but has not been changed since that time. In the ensuing 22
years, there have been several changes to State statute relative to the use of TIF. Though Apple
Valley's TIF policies have been flexible enough to meet the changes made by the Legislature,
staff is presenting non-substantive changes that modernize the policy. The spirit and intent of the
EDA's original policy is retained in the proposed amendment, though document organization is
different and some minor modifications were made. Staff also sought to retain the original
policy's flexibility. The policy has been reviewed by the City Attorney, and Rusty Fifield and
Tammy Omdal of Northland Securities.
Changes include:
1. Clear statements of TIF program goals and objectives. These were not clearly
enumerated in the 1990 policy.
2. Differentiation of program policies and criteria. Again, this was not clear in the 1990
policy.
3. Identification of reporting requirements incumbent upon recipients of TIF assistance,
which is required by State statutes.
Attached, then, for your consideration is the proposed revised TIF policy. Also attached is the
1990 TIF policy. The City Attorney has stated that a public hearing is not required for adoption
of the proposed changes.
Recommended Action
If the EDA concurs, staff is recommending the EDA adopt the resolution approving the
changes to the EDA's Tax Increment Financing policy.
H:\Economic Dev. Projects\TIF\TIF Policy and Application Changes\TIF Policy review EDA memo 042612.doc
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2012 -
WHEREAS, pursuant to Minnesota Statutes Chapter 469 (the "Statutes"), the Apple Valley
Economic Development Authority (the "EDA") is authorized to adopt criteria for the use of tax
increment financing as defined in the Statutes; and
WHEREAS, the Apple Valley Economic Development Authority (the "EDA") approved
the tax increment financing policy on February 11, 1988; and
WHEREAS, the EDA approved an amended policy on January 1, 1990; and
WHEREAS, the EDA has determined to modify the tax increment financing policy in
certain respects so that it states the programs goals and objectives; separates the program policies
and criteria; and identifies reporting requirements incumbent upon recipients of tax increment
financing assistance.
NOW, THEREFORE, BE IT RESOLVED, by the Apple. Valley Economic Development
Authority that the amended tax increment financing policy, attached as Exhibit A of this
resolution, is hereby approved.
ATTEST:
ADOPTED this 7 day of May, 2012.
Pamela J. Gackstetter, Secretary
Larry S. Severson, President
CERTIFICATE
I, Pamela Gackstetter, Apple Valley Economic Development Authority Secretary, hereby
certify that the forgoing is a true and correct copy of a resolution adopted by the Apple Valley
Economic Development Authority on May 7, 2012, the original of which is in my possession,
dated this day of , 2012.
Pamela J. Gackstetter, Secretary
SECTION 1. PURPOSE
To broaden the tax base, encourage quality construction, develop an enhanced employment base,
promote the highest and best use of the land, and provide more and better services to the citizens
of the community, it is the policy of the City of Apple Valley ("City") to encourage strong,
viable growth and development for the mixed-use, commercial and industrial areas of the
community. Tax Increment Financing ("TIF") can be an important and useful tool benefitting
the community by attracting private development, creating employment opportunities, providing
housing opportunities and encouraging the redevelopment of property.
The Apple Valley Economic Development Authority (the "EDA"), pursuant to Minnesota State
Statutes Chapter 469, as may be amended from time to time, has the authority to use TIF within
the City. When appropriate, the EDA will use TIF to aid or accomplish the development goals
of the City. The Apple Valley City Council has transferred authority for TIF issuance and
administration to the EDA. The provisions of the TIF program are designed to provide
potentially significant savings in costs, which may be an incentive for industrial, commercial,
and multi family and mixed housing enterprises to locate or expand within the City.
Though the EDA has expressed support for the use of TIF as needed, the EDA may approve or
reject any TIF application. Meeting policy criteria does not guarantee the use of TIF for an y
project. Approval or denial of one 'Project is not precedent for approval or denial of another
prjoect. The EDA shall have the option to deviate from this policy for projects when determined
necessary or appropriate.
CITY OF APPLE VALLEY
TAX INCREMENT FINANCING POLICY
Adopted: February 11, 1988
Amended January 1, 1990
Amended: , 2012
SECTION 2. TIF PROGRAM GOALS AND OBJECTIVES
It is the City's intent o advance the following goals and objectives in granting TIF assistance.
1. To promote the development or redevelopment that would not occur "but for" the assistance
provided through TIF.
2. To promote development or redevelopment that will build a strong tax base.
3. To improve the City's economic vitality through the creation and expansion of employment
opportunities.
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1 Dev. Projects\TIF\TIF Policy and Application Changes\2012 Draft Revision of EDA TIF Policy.doc
4. To assure that development projects are constructed and maintained with quality consistent
with the goals of the City.
5. To enhance the competitive position of the City regarding new and expanding business.
6. To increase the local job base, retain local jobs, and provide economic diversity in that job
base.
SECTION 3. POLICIES FOR THE USE OF TIF
1. At all times, procedures and policies related to the proposed or actual approval of TIF usage
will comply with the State laws.
2. The project must be in accord with the City's Comprehensive Plan and Zoning ordinances to
secure assistance.
3. The use of TIF may be a "business subsidy" as defined by State law. In these cases, the use
will comply with the requirements of applicable statutes and the EDA's Business Assistance
Policy.
4. The following general types of TIF districts may be established:
a. District
b. Renewal and Renovation District
c. Economic Development District
d. Housing District
e. Soils Condition District
f. Compact Development Distric t
In addition to these districts,.the EDA may also consider the creation of TIF Districts as
authorized by applicable legislation.
5. When poss ible, TIF shall be used to pay for the costs of public improvements associated
with i
*th a project, including but not limited to streets, sewers, storm water control, water, public
p l
arking lots and structures, lights, fiber optic infrastructure, transit and transportation,
energy techn ologies, and publicly owned infrastructure,
6. TIF shall gen e
e erally be used to reimburse the developer for eligible costs on a "Pay as You
T
Go" basis. EDA shall have the option to issue a TIF note with or without interest. The
principal amount of the TIF note will not exceed the amount of eligible project costs
incurred and documented by the developer. The developer shall be required to provide
written I n
itten receipts that show costs eligible for reimbursement have been paid. all cases, TIF
ents shall be based on available increment generated from the project. TIF payments
payments
be made after collection of property taxes. Requests for up front financing may be
considered by the EDA on a case-by-case basis.
2
HAEconornie Dev. Projects\TIF\TIF Policy and Application Changes\2012 Draft Revision of EDA TIF Policy.doc
7. The applicant is required to retain and be assisted by qualified professionals, e.g.
accountants, legal counsel, etc., separate and independent from the EDA.
8. TIF shall not be used for projects that would place extraordinary demands on city services
or for projects that would generate significant environmental impacts.
9. Construction of an eligible project shall not commence until the EDA has given final
approval to the application for financing and the TIF district has been established, if
required.
10. The EDA reserves the right to deny any application for financing at any time prior to final
execution of a business subsidy agreement or development agreement, which ever applies.
11. The EDA shall be reimbursed by the applicant for all its costs related to the request for TIF.
At the time of application, the applicant will deposit with the EDA an amount as determined
by the EDA as necessary to cover all costs incurred by the EDA in connection with the
proposed project.
a. The amount of the initial deposit shall be determinediDy the Executive Director of the
EDA.
b. The fact that the applicant's deposit is accepted by the EDA is not be construed as a
guarantee that the EDA will authorize the project.
c. The EDA may request and the applicant shall be responsible to pay any additional
amounts as determined from time to time by the EDA, should associated costs exceed the
initial deposit.
12. All applications and supporting materials and documents shall become the property of the
EDA, arid, as such. are subject to the Minnesota Data Practice Act.
13. T DA reserves the right to select a third party to assist in the management of the TIF
process.
14. All TIF proposals must take into account the direct costs to the City and County and how
those costs will be addressed. The applicant shall pay all permits and fees normally charged
by the City as part of the subdivision or building permit approval.
15. The EDA will reserve up to 10% of all TIF funds to pay the EDA's administrative costs.
SECTION 4. TIF PROGRAM CRITERIA
In addition to satisfying the provisions in Section 3, qualified projects should meet or exceed the
following criteria to be eligible for TIF assistance. Meeting the threshold of eligibility does not
mean automatic approval for the project.
3
H:\Economic Dev. Projects\TIRTIF Policy and Application Changes\2012 Draft Revision of EDA TIF Policy.doc
. The developer must demonstrate that the project is not financially feasible "but for" the use
of TIF. The level of TIF financing shall be reduced to the lowest possible level to achieve
the development or redevelopment goals of the City.
2. The developer must be willing to enter into a development agreement or business subsidy
agreement that satisfies the EDA.
3. The project must comply with the City of Apple Valley Business Assistance Policy,
including job and wage goals.
4. To be eligible for TIF, a project shall result in the following minimum values:
a. All industrial projects must have a minimum estimated market value of $1,500,000 upon
completion.
b. All fee-standing commercial or office projects must have a minimum estimated market
value of $1,500,000 upon completion.
c. All retail shopping center projects must have a minimum estimated market value of
$10,000,000.
d. All multi-family projects must have a minimum estimated market value of $5,000,000
upon completion.
4
11:\Econornic Dev. Projects\TIF\TIF Policy and Application Changes\2012 Draft Revision of EDA TIF Policy.doc
SECTION 5. ASSISTANCE AGREEMENT AND REPORTING REQUIREMENTS
1. All recipients of TIF assistance from the EDA shall be subject to the provisions and
requirements set forth by state statute.
2. All recipients 0 1 111: assistance with shall enter into an assistance agreement wit the EDA that
identifies the reason for the assistance, the public purpose served by the assistance, the goals
of the assistance, as well as other criteria set forth by state statute.
3. The TIF assistance agreement may be amended from time to time as the parties may agree.
Any such amendment must be in writing and signed by both parties. The TIF assistance
agreement shall be binding upon and inure to the benefit of the parties and their respective
successors and assigns. The TIF assistance agreement shall be recorded in the Office of the
Dakota County Recorder or Registrar of Titles.
4. All recipients of TIF assistance shall file a report annually for two years after the date the
benefit is received or until all goals set forth in the application and the assistance agreement
have been met. Reports shall be completed using the format drafted by the State of
Minnesota and shall be filed with the City no later than March 1 of each year for the
previous calendar year. Businesses fulfilling job creation requirements must file a report to
that effect with the City within 30 days of meeting the requirement.
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
Adopted:
Revised:
TAX INCREMENT FINANCING POLICY
AND
APPLICATION INFORMATION
App le
Valle
February 11, 1988 — Resolution #1988-20
January 1, 1990
HAEconomic Dev. Projects\TIF\TIF Policy and Application Changes\Original EDA TIF Policy.doc
GENE
L
To broaden the tax base, encourage quality construction, develop an enhanced employment base,
promote the highest and best use of the land, and provide more and better services to the citizens
of the community, it is the policy of the City of Apple Valley to encourage strong, viable growth
and development for the commercial and industrial areas of the community
The City of Apple Valley Economic Development Authority, pursuant to Minnesota State
Statutes 469 et seq, as may be amended from time to time, has the authority to use Tax Increment
Financing within the City. Therefore, when appropriate, the City of Apple Valley City Council
will use the Apple Valley Economic Development Authority (the "EDA") tax increment
financing to aid or accomplish the development goals of the City of Apple Valley. The City
Council (as of January 1 990) has transferred authority for tax increment financing issuance and
administration to the EDA, which is managed by the City Administrator.
CRITERIA
Tax Increment Financing ("TIF") can benefit the community by attracting development, creating
employment opportunities, providing housing opportunities and assisting in redevelopment
financing to eliminate blighted land. The Council and the EDA have expressed their support for
the use of TIF, however, the EDA has reserved the right to approve or reject new industrial or
commercial projects, multi-family and mixed housing, or rehabilitation and/or expansion of
business already existing in the City on an individual case basis. The factors taken into
consideration by the EDA for each case are the following:
1. Does the project meet the legislative criteria and general use of the law?
2. What significant new employment potential is created?
1 Does the project create incentive for future development?
4. Does the project increase the tax base?
5. What impact is there on City service needs?
6. Does the project support existing industrial or commercial operations in the City?
7. What is the quality of the facility to be built?
8. What is the financial feasibility of the proposed project?
9. Would the project proceed in its present design and timetable TIF?
10. Is there compatibility of the proposed project with the City's overall development plans and
objectives, and with those of the neighborhood for the project's location?
2
EI:\Economic Dev. Projects\TIF\TIF Policy and Application Changes\Origiiial EDA TIF Policy.doc
The provisions of the TIF program are designed to provide potentially significant savings in
costs, which may be an incentive for industrial, commercial, and multi-family and mixed housing
enterprises to located or expand within the City.
POLICY
1. The applicant at all times must retain and be assisted by qualified financial agencies
and/or underwriters, and by legal counsel, separate and independent from the City and the
EDA.
2. Construction of the project shall not be commenced until the EDA has given preliminary
approval to the application for financing.
3. The EDA reserves the right to deny any application for financing at any state of the
proceedings prior to adoption of the final approval authorizing issuance of the loan.
4. The EDA shall be reimbursed by the applicant for all EDA and EDA-consultant costs
related to the proposed or actual use of TIF. At the time preliminary procedures are
initiated, the applicant will deposit with the EDA an administrative fee to cover all costs
incurred by the EDA and Dakota County in connection with the proposed project. (See
Administration Section Item 2(n) for amount.)
a. The fact that the applicant's deposit is accepted by the EDA is not be construed as
a guarantee that the EDA will authorize the project which is under construction.
b. The EDA may request and receive from the applicant an additional administration
fee in an amount to be determined from time to time by the EDA should
associated costs exceed the initial deposit.
5. At all times, procedures and policies related to the proposed or actual approval of TIF
usage will comply with the laws of the State.
6. All applications and supporting materials and documents shall become the property of the
EDA, and, as such, are public documents.
7. The EDA reserves the right to select a third party to assist in the management of the loan
process.
8. All TIF proposals must take into account the direct costs to the City and County and how
those costs will be addressed to lessen or relieve those impacted. All applications shall
itemize the costs of all permits and fees to be paid by the applicant along with the
building permit. The applicant shall pay all permits and fees normally charged by the
City as part of the subdivision or building permit approval.
3
HAEconomic Dev. Projects\TIRTIF Policy and Application Changes\Original EDA TIF Policy.doc
9. The EDA will use as guidelines for types of TIF the following criteria:
a. Meets State law requirement.
b. Redevelopment TIF: The project must be a major impact on new or redeveloped
buildings in one project a minimum of 150,000 sq. ft. or 150 full-time employees.
If for housing, then a minimum of 150 multi-family units. TIF project timetables
will not exceed 20 years.
c. Economic Development TIF/Bond Issue: Bonds may be issued to pay for public
improvements such as streets, sewers, storm water control, water, public lots or
parking, purchase of land for lease back, streetscaping, lights, and other publicly
owned infrastructure. TIF project time table will not exceed the State law
stipulation of 8 annual payments in a given 10 year project.
d. Economic Development TIF/Pay-As-You-Go: The City and the EDA encourage
the use of "Pay-As-You-Go" TIF whenever possible. Pay-As-You-Go may be
used to pay for public improvements such as streets, sewers, storm water control,
water, public parking lots and structures, purchase of land for lease back,
streetscaping, lights, and other publicly owned infrastructure. TIF project time
table will not exceed the State law stipulation of 8 annual payments in a given 10
year project. Economic Development TIF bonding and Pay-As-You-Go programs
may be combined as a development tool if financially feasible in the project.
e. Minimum Values: (These values will include the total cost of the projects,
including land and infrastructure.)
(1) All industrial projects must have a minimum value of $1,500,000 upon
completion.
(2) All free-standing commercial or office projects must have a minimum
value of $1,500,000 upon completion.
( All retail shopping center projects must have a minimum value of
$10,000,000 upon completion.
(4) All multi-family projects must have a minimum value of $5,000,000 upon
completion.
10. The EDA will consider land acquisition TIF assistance only in new industrial, office or in
redevelopment projects.
11. The EDA will strive, as a general goal, to reserve up to 25% of all TIF funds to be
deposited to the "future development fund" for further enhancement to the City and EDA
development efforts.
4
H:\Economic Dev. Projects\TIF\TIF Policy and Application Changes\Original EDA TIF Policy.doc
ADMINIST
TIVE
1. A TIF application form must be completed and shall include all of the information
requested without exception.
In addition, the applicant shall agree to allow the EDA to check backgrounds of managing
partners or project managers/personnel within the development corporation and within financial
guarantee organizations.
2. The application shall include all of the following without exception:
(a) Statement of Public Purpose
(b) Description of Project
(c) Plans and Drawings of Project
(d) Description of Company
(e) Legal Opinions as Required
(f) Statement of Property Ownership or Control
(g) Letter of Feasibility from Qualified Lender
(h) Market Analysis
(i) Pro Forma Analysis
(j) Financial Statements
(k) Zoning and Planning Analysis
(1) "But For" Letter from a Qualified Lender
(m) TIF Amount Requested
(n) Deposit Check
3. EDA staff or the EDA's agent will review the data and make preliminary recommendations
to the EDA Board as to compliance of the application and proposed project with City and
EDA objectives and criteria.
5
FI:\Economic Dev. Projects\TIF\TIF Policy and Application Changes\Original EDA TIF Policy.doc
History
• 1982 - City began using Tax Increment
Financing (TIF) as an economic
development tool.
• 1988 - EDA adopted a TIF policy.
• 1990 — Policy amended; responsibility
transferred from City Council to EDA.
• Policy has not been changed since 1990.
1
Current Policy
• Flexible, generally complies with State
statute.
• Policy needs some updates to comply with
statute changes.
• Not "user friendly" — not as clear about
expectations as other cities
Policy Amendments
• Policy revised to have clear program goals and objectives.
• Based on current policy.
• Opens up types of TIF districts that could be established
• Changes in state law allow more types of districts than allowed in
1990.
• Expands use of TIF to cover other infrastructure besides roads
and sewer.
• New uses include fiber optic infrastructure, transit &
transportation, and energy technologies
• "Pay As You Go" is still preferred method.
• Identifies responsibilities of TIF recipient
• Application and deposit
• Reporting to State
2
• Adopt resolution approving Draft policy
amendments.
3
City of Apple
Val le
TO: Economic Development Authority, and
Tom Lawell, Executive Director
FROM: Ron Hedberg, Finance Director
DATE: April 22, 2012
MEMO
Finance Department
EU- 7
SUBJECT: Adopt Resolution Approving Amendments to Master Development Program for
Master Development District, Tax Increment Financing Amendments and the
Establishment of Tax Increment Financing District No. 14 and Approving the Tax
Increment Financing Plan Therefor
Introduction
The Economic Development Authority (EDA) is asked to approve the amendments to the Master
Development District and establish a new Tax Increment Financing (TIF) District, Number 14. The
City Council conducted a public hearing on March 22, 2012 to consider amendments to the Master
Development District to include a new district, No. 14 Valley Business Park and to modify the TIF
Plans for districts number 7 and 13 to reflect the expanded modified Master Development District.
After conducting the public hearing the City Council adopted a resolution approving amendments to
the Master Development Program for the Master Development District, the Tax Increment
Financing Amendments and the Establishment of Tax Increment Financing District No. 14 and
approving the Tax Increment Financing Plan.
The Master Development District should be amended to include any new districts that are
contemplated. Mary Ippel, Bond Counsel 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.
Staff has been negotiating with SPOWD Developments, LLC (represented by Hebert and
Associates) for assistance with their project in the Apple Valley Business Campus, 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 significant issues in the negotiation was obtaining the easement
required for the lowering of the pipeline along with the assessments
EDA and Executive Director
Approve Master Development District Expansion
April 22, 2012
Page 2
Discussion:
The new TIF District No. 14 would include 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 $13,930,000.
The assistance requested by the developer is to offset the anticipated special assessments related to
the construction of 147 St and Felton Court. Felton 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 Felton 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 calls 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 also called for the costs to be assessed for the portion of the assessable cost related to the
Magellan parcel against the SPOWD Development parcel.
In future action to be considered by the City Council will be to cap special assessment amounts for
147 Street at $900,000 plus estimated financing costs and interest with an associated bond issue to
finance this portion of the project. In addition to the cost for 147 the cost for Felton Court (formerly
referred to as Flagstaff Ct.) is approximately $800,000, for a total of $1,700,000 in road costs. The
attached proforma shows that the costs for 147 Street would be assessed and the costs for Felton
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 Tax Increments that would be generated
from the project, this results in the inclusion of capitalized interest of $32,000 in the financing 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 assuming full
development would generate approximately $1,931,000 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 for administrative costs
incurred by the City and the amounts 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 $1,079,000 on the first phase and $853,000 in the
second phase, a total of $1,932,000, assuming both phases are completed. The first phase of the
project would commence in early 2012 and the second phase would be in 2014.
EDA and Executive Director
Approve Master Development District Expansion
April 22, 2012
Page 3
Recap of SPOWD Developments costs associated with the construction of 147 and Felton Ct:
Tax Increment Generated
Project Costs:
147 Street
Felton Court
Assessment Financing costs
Total Assessment Costs
Remaining Gap between
Developer Request and Revenues
Generated from the Project
Action Requested:
Phase I Phase II Total
$ 1,079,000 $ 853,000 $ 1,932,000
(900,000) -0- ( 900,000)
-0- 800,000- ( 800,000)
( 180,000) -0- ( 180,000
(1,080,000) 53,000- ( 1,880,000)
(1,000)
53,000 52,000
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 occurring within a
time frame that generates resources to cover the project costs. For example, if only phase I is
completed none of the costs for Felton Ct. would be reimbursed.
Staff Recommendation
Staff recommends the adoption of the attached resolution approving modifications to the Master
Development District including modifications to the TIF plans for district no. 7 and no. 13 and
the creation of district no. 14.
• Adopt Resolution Approving Amendments to Master Development Program for Master
Development District, Tax Increment Financing Amendments and the Establishment of
Tax Increment Financing District No. 14 and Approving the Tax Increment Financing
Plan Therefor
EXTRACT OF MINUTES OF MEETING OF
THE BOARD OF COMMISSIONERS OF THE
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA
May 7, 2012
Pursuant to due call and notice thereof, a regular meeting of the Board of Commissioners
of the Apple Valley Economic Development Authority, Dakota County, Minnesota, was duly
called and held on the 7th day of May, 2012, at p.m.
The following members of the Board were present:
and the following were absent:
Member introduced the following resolution and moved its adoption:
RESOLUTION NO.
BE IT RESOLVED by the Board of Commissioners (the "Board ") of the Apple Valley
Economic Development Authority, Minnesota (the "EDA "), as follows:
1.01. It has been proposed that the EDA amend the Master Development Program for
the EDA's Apple Valley Master Development District (the "Development District ") to reflect
increased public development and redevelopment costs and activities, amend the tax increment
financing plans for Tax Increment Financing Districts No. 7 and 13 heretofore established within
the Development District, and establish Tax Increment Financing District No. 14 within the
Development District and approve its tax increment financing plan, all pursuant to the applicable
provisions of Minnesota Statutes, Sections 469.174 through 469.1799 (the "Act "), and all as
reflected in that certain document entitled in part "Amendments Relating to Apple Valley Master
Development District," dated as of March 22, 2012 (the "Program "), and presented for the
Board's consideration.
1.02. The Board has investigated the facts relating to the Program and has caused the
Program to be prepared.
1.03. The EDA has requested that the City Council of the City of Apple Valley,
Minnesota (the "City ") hold a public hearing on and thereafter consider approving the Program.
4546621v1
RESOLUTION APPROVING AMENDMENTS TO MASTER
DEVELOPMENT PROGRAM FOR MASTER DEVELOPMENT DISTRICT, TAX
INCREMENT FINANCING AMENDMENTS AND THE ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 14 AND APPROVING THE TAX
INCREMENT FINANCING PLAN THEREFOR
Section 1. Recitals.
1.04. Certain written reports (the "Reports") relating to the Program and to the activities
contemplated therein have heretofore been prepared and submitted to the Board and/or made a
part of the City or EDA files and proceedings on the Program. The Reports include data,
information and/or substantiation constituting or relating to (1) the "studies and analyses" on
why the new Tax Increment Financing District No. 14 meets the so-called "but for" test and (2)
the bases for the other findings and determinations made in this resolution. The Board hereby
confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a
part of this resolution to the same extent as if set forth in full herein.
Section 2. Approval of Amendments to the Master Development Program and
Modifications to the Tax Increment Financing Plans for Tax Increment Financing Districts No. 7
and 13. The amendments to the Master Development Program for the Apple Valley Master
Development District, and the Modifications to the Tax Increment Financing Plans for Tax
Increment Financing Districts No. 7 and 13 are hereby approved, established and adopted.
Section 3. TIF District No. 14. There is hereby established in the City within the
Master Development District, Tax Increment Financing District No. 14 therein ("TIF District No.
14"), the initial boundaries of which are fixed and determined as described in the Tax Increment
Financing Plan (the "TIF Plan") therefor.
Section 4. Tax Increment Financing Plan. The TIF Plan is adopted as the tax
increment financing plan for the TIF District, and the Board of Commissioners makes the
following findings:
4.01. The TIF District is an economic development district as defined in Minnesota
Statutes, Section 469.174, Subd. 12, the specific basis for such determination being that the
construction of not less than two commercial buildings in the Valley Business Campus by Spowd
Developments, LLC will increase employment in the State, help prevent the emergence of blight
and result in the preservation and enhancement of the tax base of the State and is in the public
interest and pursuant to Minnesota Statutes, Section 469.176, Subdivision 4c(d):
4.02. The proposed development in the opinion of the Board of Commissioners, would
not occur solely through private investment within the reasonably foreseeable future. The
reasons supporting this finding are that:
4546621v1
"It will create or retain jobs in this state, including construction jobs, and that
construction of the project would not have commenced before July 1, 2012,
without the authority providing assistance. Construction of the project will begin
no later than July 1, 2012; the request for certification of the district will be made
no later than June 20, 2012."
(i)
Spowd Developments, LLC has represented to the EDA that private investment
will not finance these development activities because of prohibitive costs. It is
necessary to finance these development activities through the use of tax increment
financing so that this and other development by private enterprise will occur
within the Development District.
2
4546621v1
(ii) A comparative analysis of estimated market values both with and without
establishment of TIF District No. 14 and the use of tax increments has been
performed as described above. Such analysis is found in Exhibit F of the TIF
Plan, and indicates that the increase in estimated market value of the proposed
development (less the indicated subtractions) exceeds the estimated market value
of the site absent the establishment of the TIF District and the use of tax
increments.
4.03. In the opinion of the Board of Commissioners, the increased market value of the
site that could reasonably be expected to occur without the use of tax increment financing would
be less than the increase in the market value estimated to result from the proposed development
after subtracting the present value of the projected tax increments for the maximum duration of
TIF District No. 14 permitted by the TIF Plan. The reasons supporting this finding are that:
(i)
The estimated amount by which the market value of the site will increase without
the use of tax increment financing is $293,447 (from $1,100,000 to $1,393,447);
(ii) The estimated increase in the market value that will result from the development
to be assisted with tax increment financing is $15,900,000 (from $1,100,000 to
$17,000,000); and
(iii) The present value of the projected tax increments for the maximum duration of
the district permitted by the tax increment financing plan is $2,340,561.
4.04. The TIF Plan for TIF District No. 14 conforms to the general plan for
development or redevelopment of the City as a whole. The reasons for supporting this finding
are that:
(i) TIF District No. 14 is properly zoned; and
(ii) The TIF Plan will generally compliment and serve to implement policies adopted
by the EDA.
4.05. The TIF Plan will afford maximum opportunity, consistent with the sound needs
of the City as a whole, for the development or redevelopment of the Development District by
private enterprise. The reasons supporting this finding are that:
The development activities are necessary so that development and
redevelopment by private enterprise can occur within the Development District.
Section 5. Public Purpose. The adoption of the Program, as amended, for the
Development District, the amendments to the Tax Increment Financing Plans for Tax Increment
Financing Districts No. 7 and 13, and the adoption of the TIF Plan for TIF District No. 14 therein
conforms in all respects to the requirements of the Act and will help fulfill a need to develop an
area of the State which is already built up to provide employment opportunities to improve the
tax base and to improve the general economy of the State and thereby serves a public purpose.
3
Section 6. Certification. Upon approval of the Program by the City Council
following its public hearing thereon, staff of the EDA shall request the Auditor of Dakota County
to certify the original net tax capacity of TIF District No. 14 as described in the TIF Plan, and to
certify in each year thereafter the amount by which the original net tax capacity has increased or
decreased in accordance with the Act; and the EDA Administrator is authorized and directed to
forthwith transmit this request to the County Auditor in such form and content as the Auditor
may specify, together with a list of all properties within TIF District No. 14 for which building
permits have been issued during the 18 months immediately preceding the adoption of this
Resolution.
Member moved the adoption of the foregoing resolution, and said
motion was duly seconded by member , and upon vote being taken
thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly adopted.
Adopted on May 7, 2012 by the Apple Valley Board of Commissioners.
Attest:
4546621v1
, Secretary
4
, Chair
I, the undersigned, being the duly qualified and acting Secretary of the Apple Valley
Economic Development Authority, Minnesota, DO HEREBY CERTIFY that I have carefully
compared the attached and foregoing extract of minutes of a duly called and regularly held
meeting of the Board of Commissioners of said Authority held on May 7, 2012, with the original
minutes thereof on file in my office and I further certify that the same is a full, true, and correct
transcript thereof insofar as said minutes relate to the tax increment and related actions
referenced therein with respect to the Apple Valley Master Development District of the Apple
Valley EDA.
WITNESS My hand officially and the official seal of the EDA this day of May,
2012.
(SEAL)
4546621v1
SECRETARY'S CERTIFICATE
Secretary
Apple Valley Economic Development Authority
This document was drafted by:
4504860v2
Amendments Relating to the Apple Valley Master
Master Development District
of the
Apple Valley Economic Development Authority,
Including Amendment of its Master Development Program
and the Tax Increment Financing Plans Therein,
Including Without Limitation the Amendment of Tax Increment
Financing Plans for Tax Increment Financing District No. 7
and for Tax Increment District No. 13 and
Establishment of Tax Increment Financing District No. 14 and
Approval of its Tax Increment Financing Plan
With Financial Information provided by:
March 22, 2012
Briggs and Morgan (MLI)
2200 First National Bank Building
332 Minnesota Street
Saint Paul, Minnesota 55101
Tel: (651) 808-6600
Fax: (651) 808-6450
Northland Securities, Inc.
45 South 7 Street
Suite 2000
Minneapolis, Minnesota 55402
SECTION I
AMENDMENT OF MASTER DEVELOPMENT PROGRAM FOR
APPLE VALLEY MASTER DEVELOPMENT DISTRICT
Section 1.01 Definitions. The terms defined below, for purposes hereof, shall have the
following respective meanings, unless the context specifically requires otherwise. As used
herein, the term "development" includes redevelopment, and the term "developing" includes
redeveloping.
"City" means the City of Apple Valley, Minnesota.
"Council" means the City Council of the City, its governing body.
"County" means Dakota County, Minnesota.
"EDA" means the Apple Valley Economic Development Authority.
"Enabling Act" means Minnesota Statutes, Sections 469.090 to 469.108, and all powers
and statutes referenced therein, including Minnesota Statutes, Sections 469.001 through 469.047
and 469.124 through 469.134.
"Master Development District" means the Apple Valley Master Development District, as
established on May 18, 1990, including without limitation the areas of the City encompassed
therein, and constituting initially a consolidation of Master Development District Nos. 1 and 2,
as said Master Development District has been or may be amended; as shown on Exhibit A
attached hereto.
"Master Development District No. 1" means that certain Master Development District of
the City established on October 14, 1982, pursuant to Council Resolution No. 1982-133, as
amended.
"Master Development District No. 2" means that certain Master Development District of
the City originally established as Master Development District No. 1 on July 14, 1983, pursuant
to Council Resolution No. 1983-99 (which Master Development District was redesignated from
"No. 1" to "No. 2" on September 13, 1984), as amended.
"Master Development Program" means the Master Development Program adopted on
May 18, 1990, for the development of the Master Development District, constituting initially an
integration of Master Development Program Nos. 1 and 2, as said Master Development Program
has been, is hereby or may be amended.
"Master Development Program No. 1" means the Master Development Program for
Master Development District No. 1, as originally adopted on October 14, 1982, pursuant to
Council Resolution No. 1982-133, as amended.
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"Master Development Program No. 2" means the Master Development Program for
Master Development District No. 2, as originally adopted on July 14, 1983, pursuant to Council
Resolution No. 1983-99, as amended.
"Project Area" means the real property within the City constituting the Master
Development District, which includes all areas within the corporate limits of the City.
"Public Costs" means the repayment of debt service on any Tax Increment Bonds, the
Costs set forth in Section 1.03, 4.05 and 4.14 of the Tax Increment Financing Plan for Tax
Increment Financing District No. 14, and any other costs eligible to be financed by Tax
Increments under Minnesota Statutes, Section 469.176, Subdivision 4.
"State" means the State of Minnesota.
"Tax Increment District" means any tax increment financing district established pursuant
to the Tax Increment Act within the Master Development District, as amended.
"Tax Increment Act" means Minnesota Statutes, Sections 469.174 through 469.179, as
amended.
"Tax Increment Bonds" means any tax increment bonds issued by the City to finance the
Public Costs of the Master Development District as stated in the Master Development Program
and in the Tax Increment Financing Plan for Tax Increment Financing District No. 14, and any
obligations issued to refund such bonds.
"Tax Increment Plans" means the respective tax increment financing plans adopted
pursuant to the Tax Increment Act for the Tax Increment Districts, respectively, as amended.
Section 1.02 Background and Purposes. The City established Master Development
District Nos. 1 and 2 and adopted their respective Master Development Program Nos. 1 and 2
pursuant to the Minnesota Municipal Master Development District Act, formerly codified as
Minnesota Statutes, Chapter 472A, and now codified in Minnesota Statutes, Sections 469.124
through 469.134, and the City established a certain Tax Increment District within Master
Development District No. 1 and adopted its Tax Increment Plan pursuant to the Tax Increment
Act. The City has also established Tax Increment Financing District Nos. 1 through 13 within
Master Development District No. 2 and adopted their respective Tax Increment Plans pursuant to
the Tax Increment Act. Additional Tax Increment Districts have been established within the
Master Development District.
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On May 18, 1990, the following actions were taken by the City:
(1) The Master Development District was established as initially the
consolidation of Master Development District Nos. 1 and 2, each project area being
expanded to become coterminous with the other.
(2) The Master Development Program was adopted, constituting initially the
integration of Master Development Program Nos. 1 and 2.
2
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( The Master Development District was enlarged and it was further
provided that such enlargement, together with every future enlargement thereof, would
constitute and be deemed to be an enlargement of both Master Development District Nos.
1 and 2.
(4) The Master Development Program was amended to include additional
public development goals, activities, and costs and it was further provided that said
amendment, together with every future amendment thereof, would constitute and be
deemed to be an amendment of both Master Development Program Nos. 1 and 2.
Pursuant to the Enabling Act, and pursuant to the Council's Resolution No. 1990-15,
adopted on January 11, 1990, the City established the EDA and, pursuant to the Council's
Resolution No. 1990-40, adopted on February 8, 1990, the City authorized the EDA to assume
the management, operation, control, and authority of the City's Master Development District
(including all Tax Increment Districts therein and their related Tax Increment Plans), as such
transfer and assumption are allowed and permitted pursuant to Minnesota Statutes, Section
469.094. On February 8, 1990, the EDA adopted its Resolution No. EDA-90-4, which accepted
such responsibility and control of the Master Development District, the Master Development
Program, and the Tax Increment Districts and Plans.
Subsequent to the establishment of the Master Development District and the adoption of
its Master Development Program, the EDA and the Council have approved a number of
amendments and supplements to the Master Development District, the Master Development
Program, and the Tax Increment Districts and Plans, respectively, including without limitation
certain amendments approved on December 10, 1992, pursuant to which the Master
Development Program was designated as and found to constitute a "redevelopment plan" within
the meaning of Minnesota Statutes, Section 469.002, Subdivision 16, and the Master
Development District was designated as and found to constitute a "redevelopment project"
within the meaning of Minnesota Statutes, Section 469.002, Subdivision 14. On March 11, 2010
the Master Development District was enlarged and the Master Development Program was
amended to reflect additional goals, objectives and activities.
Section 1.03 Amendment of Master Development Program. The Master Development
Program is hereby amended to (0 include the modification to the budget of the Tax Increment
Financing Plan for Tax Increment Financing District No. 1 adopted by the EDA in 2011 and the
City in 2012; (ii) the modification to the budget of the Tax Increment Financing Plan for Tax
Increment Financing District No. 7 adopted by the EDA and the City in 2011; (iii) the
modification to the budget of the Tax Increment Financing plan for Tax Increment Financing
District No. 13 adopted by the EDA and the City in 2011. The Master Development Program is
hereby amended to include the estimated and additional public improvement and development
goals, activities and costs described in Section IV. These costs are anticipated to be made or
incurred within the Project Area and financed in whole or in part by tax increment or other
revenues available to the EDA and/or the City.
In addition, the EDA intends to pay from available tax increment such qualifying
administrative costs as may be permitted by but subject to the applicable limitations provided in
the Tax Increment Act.
3
SECTION II
AMENDMENT OF TAX INCREMENT PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 7
Section 2.01 Amendment of Tax Increment Plan for Tax Increment Financing District
No. 7. The Tax Increment Plan of Tax Increment Financing District No. 7 heretofore established
within the Project Area is hereby amended to incorporate the enlargement of the Master
Development District, previously approved by the City and the Authority on March 11, 2010 and
incorporate all development goals, activities, and expenses herein or heretofore incorporated into
the Master Development Program or into any of the individual Tax Increment Plans, including
without limitation the budgets and purposes described in Sections 1.03 hereof.
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4
SECTION III
AMENDMENT OF TAX INCREMENT PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 13
Section 3.01 Amendment of Tax Increment Plan for Tax Increment Financing District
No. 13. The Tax Increment Plan of Tax Increment Financing District No. 13 heretofore
established within the Project Area is hereby amended to incorporate the enlargement of the
Master Development District, previously approved by the City and the Authority on March 11,
2010 and incorporate all development goals, activities, and expenses herein or heretofore
incorporated into the Master Development Program or into any of the individual Tax Increment
Plans, including without limitation the budgets and purposes described in Sections 1.03 hereof.
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SECTION IV
THE TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 14
Section 4.01 Parcel(s) to be Included in Tax Increment Financing District No. 14. Tax
Increment Financing District No. 14 is described on the attached Exhibit B and includes the
parcel identification number(s) or legal description and adjacent rights-of-way set forth on the
attached Exhibit B.
Section 4.02 Property to be Acquired. The City reserves the right to acquire any
property within Tax Increment Financing District No. 14.
Section 4.03 Statement of Objectives; Development Activity in the Master
Development District for Which Contracts Have Been Signed. Tax Increment Financing District
No. 14 is being established to achieve the objectives of the Master Development Program. The
City intends to enter into a development agreement with respect to the construction of four
commercial buildings in the Valley Business Campus to be developed within Tax Increment
Financing District No. 14 (the "Project"). No contract has been signed prior to the establishment
of Tax Increment Financing District No. 14.
Section 4.04 Other Specific Development Expected to Occur within the Master
Development District. It is anticipated that development will occur within the Master
Development District. Additional development may occur in the Master Development District in
the future; however, no contracts have been entered into at this time with respect to such
development. The nature and timing of further development cannot accurately be predicted at
this time.
Section 4.05 Estimated Public Costs. The estimated total Public Costs to be paid from
Tax Increments is described in Exhibit C.
Section 4.06 Estimated Amount of Bonded Indebtedness. It is anticipated that Tax
Increment Bonds will not be issued to finance the estimated Public Costs of the Master
Development Program. The City intends to use tax increment financing on a pay-as-you-go
basis to reimburse the developer for costs of public improvements and site improvements related
to the Project. The City, however, reserves the right to issue bonds estimated not to exceed
$3,100,000 to finance said project costs.
Section 4.07 Sources of Revenue. The revenues to pay the Public Costs of the Master
Development District are the proceeds of the Tax Increments, Tax Increment Bonds and any
other available sources of revenue, including interfund loans, which the City may apply to pay
Public Costs.
Section 4.08 Estimated Recent Net Tax Capacity. The estimated net tax capacity of all
taxable property in Tax Increment Financing District No. 14 as most recently certified by the
Commissioner of Revenue of the State of Minnesota, being the certification made in 2012 with
respect to the net tax capacity of such property as of January 2, 2011, for taxes payable in 2012 is
estimated to be $11,000.
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6
Section 4.09 Estimated Captured Net Tax Capacity and Computation of Tax Increment.
Each year the County Auditor will measure the amount of increase or decrease in the total net tax
capacity value of Tax Increment Financing District No. 14 to calculate the Tax Increments
payable to the City. In any year in which there is an increase in total net tax capacity in Tax
Increment Financing District No. 14 above the original net tax capacity, Tax Increments will be
payable to the City. In any year in which the total net tax capacity in Tax Increment Financing
District No. 14 declines below the net tax capacity, no net tax capacity will be captured and no
tax increment will be payable.
The County Auditor shall certify in each year after the date the original net tax capacity
was certified, the amount the net tax capacity has increased or decreased as a result of:
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(1) change in tax exempt status of property;
(2) reduction or enlargement of the geographic boundaries of the district;
( change due to stipulations, adjustments, negotiated or court-ordered
abatements;
(4) change in the use of the property and classification;
( change in state law governing class rates; and
(6) change in connection with previously issued building permits.
Upon completion of the development expected to occur in Tax Increment Financing
District No. 14 the City estimates the net tax capacity of taxable property in Tax Increment
Financing District No. 14 will be approximately $278,500.
The captured net tax capacity upon completion of development is expected to be
approximately $257,250. The Tax Increments may be captured for up to eight (8) years from
receipt of the first Tax Increments or until the Public Costs described in the Tax Increment
Financing Plan have been paid. The City determines that 100% of the available increase in net
tax capacity from Tax Increment Financing District No. 14 shall be used for the payment of
Public Costs of the Master Development District in accordance with the Master Development
Program and Tax Increment Financing Plan.
Section 4.10 Type of Tax Increment Financing District. Pursuant to Section 469.176,
Subdivision 4c (d) of the Act, the City has determined that Tax Increment Financing District No.
14 qualifies as an "economic Master Development District" because:
"It will create or retain jobs in this state, including construction jobs, and that
construction of the project would not have commenced before July 1, 2012, without the
authority providing assistance. Construction of the project will begin no later than July 1,
2012; the request for certification of the district will be made no later than June 30,
2012."
7
Section 4.11 Duration of Tax Increment Financing District No. 14. The Act allows
"economic Master Development Districts" to remain in existence for a period of 8 years from the
receipt of the first Tax Increments.
Section 4.12 Estimated Impact of Tax Increment Financing. The estimated impact of
Tax Increment Financing District No. 14 on the other taxing jurisdictions is set forth on Exhibit
D. In accordance with Minnesota Statutes, Section 469.175, Subdivision 1, clause (6),
alternative estimates of the impact have been made, assuming in one case that the captured net
tax capacity would be available without creation of the district and in the other case that none of
the captured net tax capacity would be available without creating the district. The details are set
forth on Exhibit F.
In accordance with Minnesota Statutes, Section 469.175, Subdivision 2, clause (b), the
fiscal and economic implications of the district are set forth on Exhibit E. The overall impact on
the general finances of the City, related to the district, is expected to be minimal. The Project is
the construction of two buildings of approximately 50,000 square feet per building and the
potential construction of two additional buildings of approximately 100,000 square feet for both
buildings. It is the opinion of the City that police and fire protection services can be provided to
the district with no identifiable budget impacts or the direct need for any additional capital
equipment. Public improvements consisting of street and utility improvements will be
constructed by the City and specially assessed to the developer undertaking the construction of
the Project. The Tax Increments will be used to reimburse the developer for the costs of the
public improvements to be constructed within Tax Increment Financing District No. 14. There is
no impact on the City's ability to issue future debt or on the City's debt limit.
Section 4.14 Use of Tax Increment. The City hereby determines that it will use 100%
of the captured net tax capacity of taxable property located in Tax Increment Financing District
No. 14 for the following activities:
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Section 4.13 Cash Flow and Other Financial Analysis. See Exhibit G attached hereto.
(
District.
(1) To pay principal and interest on the Tax Increment Bonds.
(2) To pay principal and interest on any loans, advances or other payments
made to the City or for the benefit of the Master Development District by the developer.
To finance or otherwise pay Public Costs of the Master Development
(4) To finance or otherwise pay premiums and other costs for insurance, credit
enhancement, or other security guaranteeing the payment when due of principal and
interest on the Tax Increment Bonds or bonds issued pursuant to the Tax Increment
Financing Plan or pursuant to Minnesota Statutes, Chapter 462C and Minnesota Statutes,
Sections 469.152 to 469.1651, or both.
( To accumulate or maintain a reserve securing the payment when due of
the principal and interest on the Tax Increment Bonds or bonds issued pursuant to
8
Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469.1651,
or both.
(6) To pay or finance Public Costs described in the Master Development
Program and Tax Increment Financing Plan.
( To finance other Public Costs as may be allowed by the Tax Increment
Financing Act.
These revenues shall not be used to circumvent levy limitations applicable to the City nor
for other purposes prohibited by Section 469.176, Subdivision 4 of the Tax Increment Financing
Act.
Section 4.15 Prior Planned Improvements. The City shall, after due and diligent search,
accompany its request for certification to the County Auditor with a listing of all properties
within Tax Increment Financing District No. 14 for which building permits have been issued
during the eighteen (18) months immediately preceding approval of the Tax Increment Financing
Plan by the City. The County Auditor shall increase the original net tax capacity of Tax
Increment Financing District No. 14 by the net tax capacity of the improvements for which the
building permit was issued.
Section 4.16 Modifications of Tax Increment Financing Districts. In accordance with
Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the
geographic area of the Master Development District or Tax Increment Financing District No. 14,
increase in amount of bonded indebtedness to be incurred, including a determination to increase
the amount of capitalized interest on debt to be paid on the Tax Increment Bonds over the
amount shown in this Tax Increment Financing Plan, or to increase or decrease the amount of
interest on the debt to be capitalized, increase the portion of the captured net tax capacity to be
retained by the City, increase in total estimated Public Costs or designation of additional
property to be acquired by the City shall be approved upon the notice and after the discussion,
public hearing and findings required for approval of the Tax Increment Financing Plan. The
geographic area of a Tax Increment Financing District may be reduced, but shall not be enlarged
after five years following the date of certification of the original net tax capacity by the county
auditor. If an economic Master Development District is enlarged, the reasons and supporting
facts for the determination that the addition to the district meets the criteria of section 469.174,
subdivision 11, must be documented. The requirements of this paragraph do not apply if (1) the
only modification is elimination of parcels from the project or district and (2)(A) the current tax
capacity of the parcels eliminated from the district equals or exceeds the tax capacity of those
parcels in the district's original tax capacity or (B) the authority agrees that, notwithstanding
Section 469.177, subdivision 1, the original tax capacity will be reduced by no more than the
current tax capacity of the parcels eliminated from the district. The authority must notify the
county auditor of any modification that reduces or enlarges the geographic area of a district or a
project area.
Section 4.17 Limitation on Administrative Expenses. In accordance with Minnesota
Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section 469.176, Subdivision
3, administrative expenses means all expenditures of an authority other than (1) amounts paid for
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9
the purchase of land; (2) amounts paid to contractors or others providing materials and services,
including architectural and engineering services, directly connected with the physical
development of the real property in the project; (3) relocation benefits paid to or services
provided for persons residing or businesses located in the project; (4) amounts used to pay
principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to Section
469.178; or (5) amounts used to pay other financial obligations to the extent those obligations
were used to finance costs described in clauses (1) to (3). For districts for which the requests for
certifications were made before August 1, 1979, or after June 30, 1982, administrative expenses
includes amounts paid for services provided by bond counsel, fiscal consultants, and planning or
economic development consultants. No Tax Increments shall be used to pay any administrative
expenses for a project which exceed ten percent of the total expenditures authorized by the Tax
Increment Financing Plan or the total project costs, whichever is less.
Section 4.18 Limitation on Qualification of Property in Tax Increment Financing
Districts Not Subject to Improvement. Pursuant to Minnesota Statutes, Section 469.176,
Subdivision 6, "if, after four years from the date of certification of the original net tax capacity of
the Tax Increment Financing District..., no demolition, rehabilitation or renovation of property or
other site preparation, including qualified improvement of a street adjacent to a parcel but not
installation of utility service including sewer or water systems, has been commenced on a parcel
located within a Tax Increment Financing District by the authority or by the owner of the parcel
in accordance with the tax increment financing plan, no additional tax increment may be taken
from that parcel and the original net tax capacity of that parcel shall be excluded from the
original net tax capacity of the Tax Increment Financing District. If the authority or the owner of
the parcel subsequently commences demolition, rehabilitation or renovation or other site
preparation on that parcel including qualified improvement of a street adjacent to that parcel, in
accordance with the tax increment financing plan, the authority shall certify to the county auditor
that the activity has commenced, and the county auditor shall certify the net tax capacity thereof
as most recently certified by the commissioner of revenue and add it to the original net tax
capacity of the Tax Increment Financing District." The City must submit to the county auditor
evidence that the required activity has taken place for each parcel in the Tax Increment
Financing District. The evidence for a parcel must be submitted by February 1 of the fifth year
following the year in which the parcel was certified as included in the district.
Section 4.19 Excess Tax Increments. Pursuant to Minnesota Statutes, Section 469.176,
Subdivision 2, in any year in which the Tax Increments exceed the amount necessary to pay the
Public Costs authorized by the Master Development Program and Tax Increment Financing Plan,
including the amount necessary to cancel any tax levy as provided in Minnesota Statutes, Section
475.61, Subdivision 3, the City shall use the excess amount to:
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(1) prepay the outstanding Tax Increment Bonds;
(2) discharge the pledge of Tax Increments thereto;
( pay into an escrow account dedicated to the payment of the Tax Increment
Bonds; or
10
In addition, the City may, subject to the limitations set forth herein (in particular in
Section 4.25), choose to modify the Tax Increment Financing Plan as described in Article IV, in
order to finance additional Public Costs of the Master Development District.
Section 4.20 Administration of Tax Increment Financing District No. 14.
Administration of Tax Increment Financing District will be handled by the Executive Director of
the EDA.
The Tax Increments received as a result of increases in the net tax capacity of Tax
Increment Financing District No. 14 will be maintained in a special account separate from all
other municipal accounts and expended only upon municipal activities identified in the Master
Development Program and Tax Increment Financing Plan.
Section 4.21 Annual Disclosure and Financial Reporting Requirements. The City (by
August 15) shall publish an annual statement as required under Minnesota Statutes, Section
469.175, Subdivision 5 showing for Tax Increment Financing District No. 14 the information
required to be reported under Subdivision 6, paragraph (c), clauses (1), (2), (3), (11), (12), (20),
and (21); the amounts of Tax Increment received and expended in the reporting period; and any
additional information the City deems necessary.
In addition, pursuant to Minnesota Statutes, Section 469.175, Subdivision 5, the City
must provide the County Board, the County Auditor and the State Auditor on or before August 1
of the year in which the statement must be published a copy of the annual statement.
Pursuant to Minnesota Statutes, Section 469.175, Subdivision 6, the City must file with
the State Auditor on or before August 1, an annual financial report for Tax Increment Financing
District No. 14. The report shall also be filed by the City with the County Auditor. The report
shall:
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(4) return the excess to the County Auditor for redistribution to the respective
taxing jurisdictions in proportion to their respective tax capacity rates.
(1) Provide for full disclosure of the sources and uses of Tax Increments of
Tax Increment Financing District No. 14;
(2) Permit comparison and reconciliation with the affected City's accounts and
financial reports;
( Permit auditing of the funds expended on behalf of Tax Increment
Financing District No. 14, including a single district that is part of a multidistrict project
or that is funded in part or whole through the use of a development account funded with
tax increments from other Tax Increment Financing Districts or with other public money;
and
(4) Be consistent with generally accepted accounting principles.
In addition, the report shall contain the following information:
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( The original net tax capacity of Tax Increment Financing District No. 14
and any district under Section 469.177, Subdivision 1;
(6) The net tax capacity for the reporting period of Tax Increment Financing
District No. 14 and any subdistrict;
( The captured net tax capacity of Tax Increment Financing District No. 14;
( Any fiscal disparity deduction from the captured net tax capacity under
Section 469.177, Subdivision 3;
( The captured net tax capacity retained for tax increment financing under
Section 469.177, Subdivision 2, paragraph (a), clause (1);
(10) Any captured net tax capacity distributed among affected taxing districts
under Section 469.177, Subdivision 2, paragraph (a), clause (2);
(11) The type of district;
(12) The date the City approved the Tax Increment Financing Plan and the date
of approval of any modification of the Tax Increment Financing Plan, the approval of
which requires notice, discussion, a public hearing, and findings under Section 469.175,
Subdivision 4, paragraph (a);
(13) The date the City first requested certification of the original net tax
capacity of Tax Increment Financing District No. 14 and the date of the request for
certification regarding any parcel added to the Tax Increment Financing District No. 14;
(14) The date the County Auditor first certified the original net tax capacity of
Tax Increment Financing District No. 14 and the date of certification of the original net
tax capacity of any parcel added to Tax Increment Financing District No. 14;
(15) The month and year in which the City has received or anticipates it will
receive the first increment from Tax Increment Financing District No. 14;
(16) The date Tax Increment Financing District No. 14 must be decertified;
(17) For the reporting period and prior years of Tax Increment Financing
District No. 14, the actual amount received from, at least, the following categories:
(a) Tax Increments paid by the captured net tax capacity retained for
tax increment financing under section 469.177, Subdivision 2, paragraph (a),
clause (1), but excluding any excess taxes;
(b) Tax Increments that are interest or other investment earnings on or
from Tax Increments;
12
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(c) Tax Increments that are proceeds from the sale or lease of
property, tangible or intangible, purchased by the City with Tax Increments;
(d) Tax Increments that are repayments of loans or other advances
made by the City with Tax Increments;
(e) bond proceeds; and
(0 the market value homestead credit paid to the City under Section
273.1384.
(18) For the reporting period and for the prior years of Tax Increment
Financing District No. 14, the actual amount expended for, at least, the following
categories:
(a) acquisition of land and buildings through condemnation or
purchase;
(b) site improvements or preparation costs;
(c) installation of public utilities, parking facilities, streets, roads,
sidewalks, or other similar public improvements;
(d) administrative costs, including the allocated cost of the City; and
(e) for housing districts, construction of affordable housing;
(19) The amount of any payments for activities and improvements located
outside of the district that are paid for or financed with Tax Increments;
(20) The amount of payments of principal and interest that are made during the
reporting period on any nondefeased:
(a) general obligation tax increment financing bonds; and
(b) other tax increment financing bonds including pay-as-you-go
contracts and notes.
(21) The principal amount, at the end of the reporting period, of any
nondefeased:
(a) general obligation tax increment financing bonds; and
(b) other tax increment financing bonds, including pay-as-you-go
contracts and notes.
(22) The amount of principal and interest payments that are due for the current
calendar year on any nondefeased:
13
(a) general obligation tax increment financing bonds; and
(b) other tax increment financing bonds, including pay-as-you-go
contracts and notes.
(23) If the fiscal disparities contribution under Chapter 276A or 473F for Tax
Increment Financing District No. 14 is computed under Section 469.177, Subdivision 3,
paragraph (a), the amount of total increased property taxes to be paid from outside Tax
Increment Financing District No. 14; and
(24) Any additional information the State Auditor may require.
IF THE CITY FAILS TO MAKE A DISCLOSURE OR SUBMIT A REPORT
CONTAINING THE INFORMATION REQUIRED BY AND WITHIN THE TIME
PROVIDED IN SECTION 469.175, SUBDIVISIONS 5 AND 6 THE STATE AUDITOR
SHALL NOTIFY THE COUNTY AUDITOR TO HOLD THE DISTRIBUTION OF TAX
INCREMENT FROM TAX INCREMENT FINANCING DISTRICT NO. 14.
Section 4.22 Reasonable Expectations. As required by the Tax Increment Financing
Act, in establishing Tax Increment Financing District No. 14, the determination has been made
that the anticipated development would not reasonably be expected to occur solely through
private investment within the reasonably foreseeable future and that the increased market value
of the site that could reasonably be expected to occur without the use of tax increment financing
would be less than the increase in the market value estimated to result from the proposed
development after subtracting the present value of the projected Tax Increments for the
maximum duration of Tax Increment Financing District No. 14 permitted by the Tax Increment
Financing Plan. In making said determination, reliance has been placed upon written
representations made by the developer to such effects and upon City staff awareness of the
feasibility of developing the project site. A comparative analysis of estimated market values
both with and without establishment of Tax Increment Financing District No. 14 and the use of
Tax Increments has been performed as described above. Such analysis is on file with the City,
and indicates that the increase in estimated market value of the proposed development (less the
indicated subtractions) exceeds the estimated market value of the site absent the establishment of
Tax Increment Financing District No. 14 and the use of Tax Increments.
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Section 4.23 Other Limitations on the Use of Tax Increment.
(1) General Limitations. All revenue derived from tax increment shall be
used in accordance with the tax increment financing plan. The revenues shall be used to
finance or otherwise pay public capital and administration costs pursuant to Minnesota
Statutes, Section 469.124 through 469.134. These revenues shall not be used to
circumvent existing levy limit law. No revenues derived from tax increment shall be used
for the construction, renovation, operation or maintenance of a building to be used
primarily and regularly for conducting the business of a municipality, county, school
district, or any other local unit of government or the state or federal government or for a
commons area used as a public park, or a facility used for social, recreational, or
conference purposes; this provision shall not prohibit the use of revenues derived from
14
tax increments for the construction or renovation of a parking structure or of a privately
owned facility for conference purposes.
(2) Restriction on Pooling. At least 80 percent of tax increments from the Tax
Increment Financing District No. 14 must be expended on activities in Tax Increment
Financing District No. 14 or to pay bonds, to the extent that the proceeds of the bonds
were used to finance activities within said district or to pay, or secure payment of, debt
service on credit enhanced bonds. Not more than 20 percent of said tax increments may
be expended, through a development fund or otherwise, on activities outside of Tax
Increment Financing District No. 14 except to pay, or secure payment of, debt service on
credit enhanced bonds. For purpose of applying this restriction, all administrative
expenses must be treated as if they were solely for activities outside of Tax Increment
Financing District No. 14.
( Five Year Limitation on Commitment of Tax Increments. Tax increments
derived from Tax Increment Financing District No. 14 shall be deemed to have satisfied
the 75 percent test set forth in paragraph (2) above only if the five year rule set forth in
M.S., Section 469.1763, Subd. 3, has been satisfied; and beginning with the sixth year
following certification of Tax Increment Financing District No. 14, 75 percent of said tax
increments that remain after expenditures permitted under said five year rule must be
used only to pay previously committed expenditures or credit enhanced bonds as more
fully set forth in M.S., Section 469.1763, Subd. 5.
Section 4.24 Economic Development or Job Growth; Business Subsidies; Reporting.
To the extent applicable, the City agrees to comply with Minnesota Statutes, Sections 116J.993
to 116J.995, which states that a local unit of government granting financial assistance to a
business for economic development or job growth purposes, including tax increment financing,
must establish business subsidy criteria and approve a business subsidy agreement with the
business receiving tax assistance. Minnesota Statutes, Section 116J.993 requires a city providing
a business with a subsidy worth $25,000 to complete a subsidy approval process as described
below. Housing projects and many redevelopment projects are exempt from the requirements.
Before granting a business subsidy, the City must complete the following:
(1) Adopt criteria for awarding business subsidies following a public hearing.
4504860v2
(2) Enter into a subsidy agreement which must include the following
information and requirements:
(a) A description of the subsidy, including the amount and type of
subsidy, and type of district if the subsidy is a tax increment financing;
(b) A statement of the public purpose of the subsidy;
(c) Measurable, specific, and tangible goals for the subsidy;
(d) A description of the recipient's financial obligation if the goals are
not met.
15
4504860v2
A commitment from the recipient to continue operations in the
jurisdiction where the subsidy is used for at least five (5) years after the benefit
date;
any;
(e) A statement of why the subsidy is needed.
(g) The name and address of the parent corporation of the recipient, if
(h) A list of all financial assistance by all grantors for the project; and
(i) A requirement for the recipient to provide the Authority and the
Department of Employment and Economic Development with annual information
regarding goals for two years after receiving the subsidy or until the goals are
achieved. The reports must be filed by March 1 for the prior year.
( If the business subsidy exceeds $150,000, the City must conduct a public
hearing on the subsidy, after providing at least ten (10) days published notice in the local
newspaper.
Section 4.25 Requirements for Agreements with Developers. Pursuant to Minnesota
Statutes, Section 469.176 Subd. 5, if more than 10% of the acreage of a project is to be acquired
by the City with proceeds from tax increment bonds then, prior to such acquisition, the City must
enter into an agreement for the development of the property. Such agreement must provide
recourse for the City should the development not be completed.
Section 4.26 County Road Costs. Pursuant to Minnesota Statutes, Section 469.175,
Subdivision 1 a, the County board may require the City to pay for all or part of the cost of County
road improvements if the proposed development to be assisted by Tax Increments will, in the
judgment of the County, substantially increase the use of County roads requiring construction of
road improvements or other road costs and if the road improvements are not scheduled within the
next five years under a capital improvement plan or within five years under another County plan.
If the County elects to use Tax Increments to improve County roads, it must notify the City
within forty-five days of receipt of this Tax Increment Financing Plan.
Section 4.27 Green Acres. Tax Increment Financing District No. 14 does not contain
any parcel or part of a parcel that qualified under the provisions of Section 273.111 or 273.112
and Chapter 473H for taxes payable in any of the five calendar years before the filing of the
request for certification of the Tax Increment Financing District.
16
H
exihit
Estimated financing costs
Interest expense
EXHIBIT C
Projected Tax Increment
City of Apple Valley, Minnesota
Tax Increment Financing District No. 14
Estimated Tax Increment Revenues (from tax increment generated by the district)
Tax increment revenues distributed from the county
Interest and investment earnings
Sales/lease proceeds
Market value homestead credit
Total Estimated Tax Increment Revenues
Estimated Project/Financing Costs (to be paid or financed with tax increment)
Project costs
Land/building acquisition
Site improvements/preparation costs
Utilities
Other qualifying improvements
Construction of affordable housing
Small city authorized costs, if not already included above
Administrative costs
Estimated Tax Increment Project Costs
Total Estimated Project/Financing Costs to be Paid from Tax Increment
Estimated Financing
Total amount of bonds to be issued
Note:
Figures have been rounded
4504860v2
C-1
Total
$3,000,000
$100,000
$0
$0
$3,100,000
$0
$0
$1,700,000
$690,000
$0
$0
$0
$300,000
$2,690,000
$410,000
3,100,000
$0
4504860v2
EXHIBIT D
Apple Valley EDA
Tax Increment Financing District No. 14
Estimated tax Increments Over Maximum Life of District
Based on Pay 2011 Tax Rate = 103.695% 42.388% 29.149% 26.959% 5.199%
TIF Taxes New Base Captured Estimated City County School Other
District Payable Tax Tax Tax Total TIF TIF TIF TIF
Year Year Capacity Capacity Capacity Tax Related Related Related Related
Increment Share Share Share Share
1 2014 69,625 (21,250) 48,375 50,162 20,505 14,101 13,041 2,515
2 2015 230,707 (21,250) 209,457 217,197 88,785 61,055 56,468 10,889
3 2016 359,115 (21,250) 337,865 350,349 143,214 98,484 91,085 17,566
4 2017 369,888 (21,250) 348,638 361,520 147,781 101,625 93,989 18,125
5 2018 380,985 (21,250) 359,735 373,027 152,484 104,859 96,981 18,703
6 2019 392,414 (21,250) 371,164 384,879 157,329 108,191 100,062 19,297
7 2020 404,187 (21,250) 382,937 397,086 162,319 111,622 103,236 19,909
8 2021 416,312 (21,250) 395,062 409,660 167,459 115,157 106,505 20,539
9 2022 428,802 (21,250) 407,552 422,611 172,753 118,797 109,872 21,189
Total 2,966,491 1,212,629 833,891 771,239 148,732
D -1
Estimated Annual Captured Tax Capacity (Full Development)
Payable 2011 Local Tax Rate
Estimated Annual Tax Increment
City of Apple Valley
Dakota County
Rosemount -Apple Valley -Eagan ISD 196
City of Apple Valley
Dakota County
Rosemount -Apple Valley -Eagan ISD 196
Other
Totals
4504860v2
EXHIBIT E
Apple Valley EDA
Tax Increment Financing District No. 14
Impact On Other Taxing Jurisdictions
(Taxes Payable 2011)
ANNUAL TAX INCREMENT
Percent of Tax Base
E - 1
Net Tax Captured
Capacity Tax Percent of
(NTC) Capacity Total NTC
42,796,310
383,768,975
139,200,876
$407,552
103.695%
$422,611
407,552
407,552
407,552
0.95%
0.11%
0.29%
Dollar Impact of Affected Taxing Jurisdiction
Net Tax Tax Added
Capacity Increment Local Tax
(NTC) % of Total Share Rate
42.388% 40.878% 172,753 0.404%
29.149% 28.110% 118,797 0.031%
26.959% 25.998% 109,872 0.079%
5.199% 5.014% 21,189
103.695 100.000% 422,611
NOTE NO. 1: Assuming that ALL of the captured tax capacity would be available to all taxing jurisdictions even if
the City does not create the Tax Increment District, the creation of the District will reduce tax capacities and
increase the local tax rate as illustrated in the above tables.
NOTE NO. 2: Assuming that NONE of the captured tax capacity would be available to the taxing jurisdiction if the
City did not create the Tax Increment District, then the plan has virtually no initial effect on the tax capacities of the
taxing jurisdictions. However, once the District is established, allowable costs paid from the increments, and the
District is terminated, all taxing jurisdictions will experience an increase in their tax base.
EXHIBIT F
Apple Valley EDA
Tax Increment Financing District No. 14
Present Value Analysis As Required By
Minnesota Statutes 469.175(3)(2)
1 Estimated Future Market Value w/ Tax Increment Financing 17,000 000
2 Payable 2011 Market Value 1,100 000
3 Market Value Increase (1-2) 15,900 000
4 Present Value of Future Tax Increments 2,340 561
5 Market Value Increase Less PV of Tax Increments 13,559 439
6 Estimated Future Market Value w/o Tax Increment Financing 1,393,447 1
7 Payable 2011 Market Value 1,100,000
8 Market Value Increase (6-7) 293,447
9 Increase in MV From TIF 13,265,992 2
1 Assume 3.0% appreciation over 8 year life of district
2
Statutory compliance achieved if increase in market value from TIF (Line 9) is
greater than or equal to zero.
4504860v2
F-1
Tax Increment Financing District No. 14
Projected Tax Increment
TIF Taxes New Base Captured Original Estimated State Annual PV of
Distrkt Value Payabk Tax Tax Tax Tax Tax City Auditor fax Net Increme
Year Year Year Capacity Capacity Capacity Rate crement Admin e uct Inc rement 4,00%
1 2013 2014 69,625 (21,250) 48,375 103.6954 50,162 (5,016) (181' 1196% 43,236
2 2014 2015 230,707 C21,250) 209,457 103.695% 217,1,97 (21,720) (782) 194,695 223,243
3 2015 2016 359,115 (21,250) 337,865 103.695% 350,349 (35,035) (1,261) 314,053 502,434
4 2016 2017 369,888 (21,250) 348,638 103.695% 361,520 (36,152) (1,301) 324,067 779,448
5 2017 2018 380,985 (21,250) 359,735 103.695% 3'73,027 (37,303) (1,343) 334,381 1,054,285
6 2018 2019 392,414 (21,250) 371,164 1(B.695% 384,879 (38,488) (1,386) 345,006 1,326,948
*7 2019 2020 404,187 (21,250) 382,937 103.695% 397,086 (39,709) (1,130) 355,948 1,597,439
8 2020 2021 416,312 (21,250) 395,062 103.695% 409,660 (40,966) (1,475) 367,219 1,865,763
9 2021 2022 428,802 (21,250) 407,552 103.695% 422,611 (42,261) (1,521) 378,829 2,131,922
TOTAL =
1 Phase 1 Assumed development 100,000 sf @ $70/sf
2 Phase II Assumed development = 100,000 sf 04). $100/sf
3 New economic development nr district
4 District excluded from Fiscal Disparities contributtion
5 Fax rate for taxes payable 2011
6 Assume 3.0% annual appreuduon n value over 8 year life af district
4504860v2
Assumed 100.00% 10.00% 0.36% Available Total
EXHIBIT G
2,966,491
(296,649)
10,679)
2,
G-1
nt
City of Apple II
Valley
TO:
FROM:
MEETING
DATE:
SUBJECT:
President and Board Members of the Economic Development Authority,
Executive Director
Margaret M. Dykes, Associate City Planner
May 7, 2012
Agenda Item
Development Agreement for Bluewater Capital Management II, LLC
(a/k/a Wise Aquatic Facility — 5885-149 Street W.)
MEMO
Community Development Department
Background
At its meeting of March 8 , the EDA reviewed information regarding the feasibility of using TIF
pooling funds to support local commercial property owners who would like to make investments
in their buildings in order to attract businesses. 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 1, 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.
Project Description
Jim Wise, owner of two existing Apple Valley businesses (Wise Swim School and Elsmore
Sports), approached the City in December 2011 about possible resources to assist with
renovations at the Venstar 15 building located at 5885-149 St. W. Mr. Wise has recently
purchased this building; he has created Bluewater Capital Management II, LLC for this property.
The building is an approximately 41,500 sq. ft. warehouse and was constructed in 1989. Most of
the building is vacant, and Mr. Wise would like to convert approximately 15,000 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, Mr. Wise states
the roof would need to be removed and support structures widened to accommodate the in-
ground pool. There is also some damage that has been done to building by previous occupants
which resulted in mold in some areas. Removal of the existing interior walls is necessary to
remediate the mold. Additional upgrades must be made to the HVAC system, and the electrical
and plumbing systems. Site plan review is not required as there is no expansion of the existing
structure. Mr. Wise has submitted cost estimates that show the project construction costs would
total over $1 million. He is requesting assistance totaling $149,900 to help finance some of the
construction costs in order to start the new business. Funding for the assistance would come
from the TIF pooling dollars that can be used for projects such as the one proposed by Mr. Wise.
bA g
Staff is recommending support of Mr. Wise's proposal for the following reasons:
1. The Aquatic Facility will employ approximately 32 people.
2. Mr. Wise is the owner of two existing successful businesses in Apple Valley.
3. The project is ready to begin and would meet the June 30 start-date deadline.
4. The requested funding is approximately 15% of the hard construction costs.
Agenda Item
The requested funding from Mr. Wise does not require a public hearing. Attached to this memo
is the Development Agreement drafted by Mary Ippel of Briggs & Morgan, the City's bond
counsel. It has been reviewed by the City Attorney, and agreed to by Mr. Wise.
Recommended Action: Adopt the draft resolution approving the Development Agreement
for Bluewater Capital Management II, LLC to provide $149,900 for construction costs at
Wise Aquatic Facility — 5885-149 Street W.
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA-12-
A RESOLUTION APPROVING A DEVELOPMENT AGREEMENT
BETWEEN THE APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
AND BLUEWATER CAPITAL MANAGEMENT II, LLC
WHEREAS, the Apple Valley Economic Development Authority ("EDA") and the City
of Apple Valley, Minnesota (the "City") have adopted a Master Development Program and
established the Master Development District and created Tax Increment Financing Districts
within the Master Development District and adopted Tax Increment Financing Plans with respect
to these Tax Increment Districts pursuant to Chapter 469 of the Minnesota Statutes in an effort to
encourage development and redevelopment of certain designated areas within the City, which
program, plans and districts have been amended from time to time; and
WHEREAS, the City has previously established Tax Increment Financing District No. 13
(the "TIF District") and adopted the tax increment financing plan therefor (the "TIF Plan"); and
WHEREAS, on December 20, 2011, the City Council approved a spending plan for the
TIF District in accordance with Minnesota Statues, Section 469.176 Subd. 4m (the "Spending
Plan") to utilize existing tax increment revenues from the TIF District in order to stimulate
construction or rehabilitation of private development in a way that will also create or retain jobs;
and
WHEREAS, Bluewater Capital Management II, LLC (the "Developer") has requested
assistance from the EDA to support building renovations and construction at property identified
as Lot 3, Block 1, Northstar Industrial Park (5885-149 Street W.); and
WHEREAS, a Development Agreement between the EDA and the Developer has been
prepared describing a project and site improvements consistent with the Spending Plan; and
WHEREAS, the EDA deems it to be in the best interest of the EDA and City to utilize a
portion of the revenues from Tax Increment Financing District No. 13 to provide assistance to
the Developer for site improvements listed in the Development Agreement, which include the
construction of an eight-lane competition pool, the removal and replacement of the roof, interior
demolition of existing walls, construction of locker rooms, classrooms, training rooms, and
offices as shown on the building plans submitted to the City on April 23, 2012.
NOW, THEREFORE, be it resolved by the Commissioners of the EDA that the
Development Agreement is hereby approved and the President and Secretary are authorized to
sign the same.
ADOPTED this 7 day of May, 2012.
ATTEST:
Pamela J. Gackstetter, Secretary
Larry S. Severson, President
CERTIFICATE
I, Pamela Gackstetter, Apple Valley Economic Development Authority Secretary, hereby
certify that the forgoing is a true and correct copy of a resolution adopted by the Apple Valley
Economic Development Authority on May 7, 2012, the original of which is in my possession,
dated this day of , 2012 .
3
Pamela J. Gackstetter, Secretary
4608235v1
DEVELOPMENT AGREEMENT
BY AND BETWEEN
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY,
MINNESOTA
AND
BLUEWATER CAPITAL MANAGEMENT II, LLC
ARTICLE I
Section 1
ARTICLE II
Section 2
Section 2.
ARTICLE III
Section 3.
Section 3.
ARTICLE IV
Section 4.
Section 4.
Section 4.
Section 4.
Section 4.
Section 4.
ARTICLE V
Section 5.
Section 5.
Section 5.
ARTICLE VI
Section 6.1
Section 6.2
Section 6.3
Section 6.4
Section 6.5
Section 6.6
Section 6.7
Section 6.8
Section 6.9
4608235v1
Table of Contents
DEFINITIONS
.1 Definitions
REPRESENTATIONS AND WARRANTIES
.1 Representations and Warranties of the Authority
2 Representations and Warranties of the Developer
UNDERTAKINGS BY DEVELOPER AND AUTHORITY
1 Site Improvements; Project Costs
2 Reimbursement
EVENTS OF DEFAULT
1 Events of Default Defined
2 Remedies on Default
3 No Remedy Exclusive
4 No Implied Waiver
5 Agreement to Pay Attorney's Fees and Expenses
6 Indemnification of Authority
DEVELOPER'S OPTION TO TERMINATE AGREEMENT
1 The Developer's Option to Terminate
2 Action to Terminate
3 Effect of Termination
ADDITIONAL PROVISIONS
Restrictions on Use
Conflicts of Interest
Titles of Articles and Sections
Notices and Demands
Counterparts
Law Governing
Provisions Surviving Rescission or Expiration
Assignability of Agreement
Expiration
EXHIBIT A Parcel Identification Numbers of Development Property
Page
2
2
4
4
4
6
6
6
7
7
7
8
8
8
8
10
10
10
10
11
11
11
11
12
12
12
12
12
A-1
4608235v1
THIS AGREEMENT, made as of the day of , 2012, by and between
the Apple Valley Economic Development Authority, Minnesota (the "Authority"), a public body
corporate and politic under the laws of the State of Minnesota and Bluewater Capital
Management II, LLC (the "Developer"), a limited liability corporation.
WITNES SETH:
DEVELOPMENT AGREEMENT
WHEREAS, pursuant to Minnesota Statutes, Section 469.124 through 469.134, the City
has formed Apple Valley Master Development District (the "Development District") and has
adopted a development program therefor (the "Development Program"); and
WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through
469.1799, as amended, (hereinafter the "Tax Increment Act"), the City has created, within the
Development District, tax increment districts within the Development District and has in
accordance with the provisions of Minnesota Statutes, Section 469.176, subd. 4m adopted a
spending plan which provides for the use of tax increment financing in connection with certain
developments within the Development District; and
WHEREAS, in order to achieve the objectives of the Development Program and
particularly to make the land in the Development District available for development by private
enterprise in conformance with the Development Program, the Authority has determined to
reimburse the Developer for certain costs of a Project (as hereinafter defined) to be undertaken
by the Developer as more particularly set forth in this Agreement; and
WHEREAS, the Authority believes that the development and construction of the Project,
and fulfillment of this Agreement are vital and are in the best interests of the Authority, the
health, safety, morals and welfare of residents of the Authority, and in accordance with the
public purpose and provisions of the applicable state and local laws and requirements under
which the Project has been undertaken and is being assisted.
WHEREAS, the requirements of the Business Subsidy Law, Minnesota Statutes, Section
116J.993 through 116J.995, do not apply to this Agreement because the amount paid to the
Developer is less than $150,000; and
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. All capitalized terms used and not otherwise defined herein
shall have the following meanings unless a different meaning clearly appears from the context:
Agreement means this Agreement, as the same may be from time to time modified,
amended or supplemented;
Authority means Apple Valley Economic Development Authority, Minnesota, a
Minnesota public body corporate and politic;
Business Day means any day except a Saturday, Sunday or a legal holiday or a day on
which banking institutions in the Authority are authorized by law or executive order to close;
Commencement of Construction means the issuance of all building permits and any other
permits the City requires for construction of the Project and commencement of physical
construction of the Project on the Development Property;
County means Dakota County, Minnesota;
Developer means Bluewater Capital Management II, LLC, its successors and assigns;
Development District means the real property described in the Development Program;
Development Program means the development program approved in connection with the
Development District;
Development Property means the real property legally described in Exhibit A attached to
this Agreement;
Event of Default means any of the events described in Section 4.1 hereof;
Project means the substantial rehabilitation of the building at 5885 — 149 Street West,
including the replacement of the roof on the east side of the building; mold remediation; interior
demolition of existing walls to accommodate construction of an 8-lane competition pool, locker
rooms, training and classroom facilities, and offices.
Site Improvements means the construction of an eight-lane competition pool, the removal
and replacement of the roof, interior demolition of existing walls, construction of locker rooms,
classrooms, training rooms, and offices as shown on the building plans submitted to the City on
April 23, 2012;
4608235v1
City means the City of Apple Valley, Minnesota;
State means the State of Minnesota;
2
Tax Increment Act means Minnesota Statutes, Sections 469.174 through 469.1799, as
amended;
Unavoidable Delays means delays, outside that control of the party claiming its
occurrence, which are the direct result of strikes, other labor troubles, unusually severe or
prolonged bad weather, acts of God, fire or other casualty to the Project, litigation commenced
by third parties which, by injunction or other similar judicial action or by the exercise of
reasonable discretion, directly results in delays, or acts of any federal, state or local
governmental unit (other than the Authority) which directly result in delays.
4608235v1
3
ARTICLE II
REPRESENTATIONS AND WARRANTIES
Section 2.1 Representations and Warranties of the Authority. The Authority makes
the following representations and warranties:
(1) The Authority is a body corporate and politic and has the power to enter into this
Agreement and carry out its obligations hereunder.
(2) The development contemplated by this Agreement is in conformance with the
development objectives set forth in the Development Program.
(3) The Authority proposes, subject to the further provisions of this Agreement, to
reimburse the Developer for a portion of the costs of the Site Improvements as further provided
in this Agreement.
(4) The Authority makes no representation or warranty, either express or implied, as
to the Development Property or its condition or the soil conditions thereon, or that the
Development Property shall be suitable for the Developer's purposes or needs.
Section 2.2 Representations and Warranties of the Developer. The Developer makes
the following representations and warranties:
(1) The Developer is a limited liability corporation, qualified to do business in the
State and has the power to enter into this Agreement and to perform its obligations hereunder and
is not in violation of its articles of organization, operating agreement, member control agreement
or the laws of the State.
(2) The Developer shall cause the Project to be installed in accordance with the terms
of this Agreement, the Development Program, and all local, state and federal laws and
regulations (including, but not limited to, environmental, zoning, energy conservation, building
code and public health laws and regulations).
(3) The construction of the Project would not be undertaken by the Developer, and in
the opinion of the Developer would not be economically feasible within the reasonably
foreseeable future, without the assistance and benefit to the Developer provided for in this
Agreement.
(4) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provision of any contractual restriction, evidence of indebtedness,
agreement or instrument of whatever nature to which the Developer is now a party or by which
they are bound, or constitutes a default under any of the foregoing.
4608235v1
4
( The Developer will cooperate fully with the Authority with respect to any
litigation commenced with respect to the Project.
(6) The Developer will cooperate fully with the Authority in resolution of any traffic,
parking, trash removal or public safety problems which may arise in connection with the
construction of the Project.
( The Commencement of Construction of the Project shall commence by July 1,
2012, and will create or retain jobs in the State including construction jobs and, barring
Unavoidable Delays, the Project will be completed by December 31, 2012.
(8) The Developer will continue to maintain and operate in the Development Property
for a period of five (5) years after the date the assistance is provided.
4608235v1
5
4608235v1
ARTICLE III
UNDERTAKINGS BY DEVELOPER AND AUTHORITY
Section 3.1 Site Improvements; Project Costs. The parties agree that the Site
Improvements to be constructed and installed by the Developer are essential to the successful
completion of the Project. The Project Costs shall be paid by the Developer. The Authority
shall reimburse the Developer for Project Costs up to $149,900, actually incurred and paid by the
Developer (the "Reimbursement Amount") as further provided in Section 3.2 hereof.
Section 3.2 Reimbursement. Upon satisfaction of the following preconditions the
Authority agrees to reimburse the Developer for the costs identified in Section 3.1. The
Authority's obligation to pay the Reimbursement Amount shall be conditioned upon the
requirement that:
(1) There shall not at any time be an Event of Default that has occurred and
continuing under this Agreement;
(2) This Agreement shall not have been rescinded pursuant to Section 4.2(b);
( The construction and installation of the Site Improvements are complete, and a
Certificate of Occupancy has been issued by the City of Apple Valley Building Official; and
(4) The Developer shall have provided the Authority, no later than November 15,
2012, with paid invoices and receipts for the installation of the Site Improvements in an amount
not less than the Reimbursement Amount.
Section 4.1 Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean whenever it is used in this
Agreement any one or more of the following events:
4608235v1
ARTICLE IV
EVENTS OF DEFAULT
(a) Failure by the Developer to timely pay any ad valorem real property taxes
assessed special assessments or other Authority charges with respect to the Development
Property.
(b) Failure by the Developer to cause the installation of the Project to be
completed pursuant to the terms, conditions and limitations of this Agreement.
(c) Failure of the Developer to observe or perform any other covenant,
condition, obligation or agreement on its part to be observed or performed under this
Agreement.
(d) The holder of any mortgage on the Development Property or any
improvements thereon, or any portion thereof, commences foreclosure proceedings as a
result of any default under the applicable mortgage documents.
(e) If the Developer shall
(A) file any petition in bankruptcy or for any reorganization,
arrangement, composition, readjustment, liquidation, dissolution, or similar relief
under the United States Bankruptcy Act of 1978, as amended or under any similar
federal or state law; or
(B) make an assignment for the benefit of their creditors; or
(C) admit in writing its inability to pay its debts generally as they
become due; or
(D) be adjudicated a bankrupt or insolvent; or if a petition or answer
proposing the adjudication of the Developer, as a bankrupt or its reorganization
under any present or future federal bankruptcy act or any similar federal or state
law shall be filed in any court and such petition or answer shall not be discharged
or denied within sixty (60) days after the filing thereof; or a receiver, trustee or
liquidator of the Developer, or of the Project, or part thereof, shall be appointed in
any proceeding brought against the Developer, and shall not be discharged within
sixty (60) days after such appointment, or if the Developer, shall consent to or
acquiesce in such appointment.
Section 4.2 Remedies on Default. Whenever any Event of Default referred to in
Section 4.1 occurs and is continuing, the Authority, as specified below, may take any one or
7
more of the following actions after the giving of thirty (30) days' written notice to the Developer
citing with specificity the item or items of default and notifying the Developer that it has thirty
(30) days within which to cure said Event of Default. If the Event of Default has not been cured
within said thirty (30) days:
(a) The Authority may suspend its performance under this Agreement until it
receives assurances from the Developer, deemed adequate by the Authority, that the
Developer will cure its default and continue its performance under this Agreement.
(b) The Authority may cancel and rescind the Agreement.
(c) The Authority may take any action, including legal or administrative
action, in law or equity, which may appear necessary or desirable to enforce performance
and observance of any obligation, agreement, or covenant of the Developer under this
Agreement.
Section 4.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to
the Authority is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.
Section 4.4 No Implied Waiver. In the event any agreement contained in this
Agreement should be breached by any party and thereafter waived by any other party, such
waiver shall be limited to the particular breach so waived and shall not be deemed to waive any
other concurrent, previous or subsequent breach hereunder.
Section 4.5 Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of
Default occurs and the Authority shall employ attorneys or incur other expenses for the
collection of payments due or to become due or for the enforcement or performance or
observance of any obligation or agreement on the part of the Developer herein contained, the
Developer agrees that they shall, on demand therefor, pay to the Authority the reasonable fees of
such attorneys and such other expenses so incurred by the Authority.
(1) The Developer (a) releases the Authority and its governing body members,
officers, agents, including the independent contractors, consultants and legal counsel, servants
and employees (collectively, the "Indemnified Parties") from, (b) covenants and agrees that the
Indemnified Parties shall not be liable for, and (c) agrees to indemnify and hold harmless the
Indemnified Parties against, any claim, cause of action, suit or liability for loss or damage to
property or any injury to or death of any person occurring at or about or resulting from any
defect in the Project or on the Development Property.
(2) Except for any willful misrepresentation or any willful or wanton misconduct of
the Indemnified Parties, the Developer agrees to protect and defend the Indemnified Parties, now
4608235v1
Section 4.6 Indemnification of Authority.
8
and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit,
action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly
arising from the actions or inactions of the Developer (or if other persons acting on its behalf or
under its direction or control) under this Agreement, or the transactions contemplated hereby or
the acquisition, construction, installation, ownership, and operation of the Project; provided, that
this indemnification shall not apply to the warranties made or obligations undertaken by the
Authority in this Agreement or to any actions undertaken by the Authority which are not
contemplated by this Agreement.
( All covenants, stipulations, promises, agreements and obligations of the Authority
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the Authority and not of any governing body member, officer, agent, servant or
employee of the Authority.
4608235v1
9
4608235v1
ARTICLE V
DEVELOPER'S OPTION TO TERMINATE AGREEMENT
Section 5.1 The Developer's Option to Terminate. This Agreement may be terminated
by Developer, if (i) the Developer is in compliance with all material terms of this Agreement and
no Event of Default has occurred; and (ii) the Authority fails to comply with any material term of
this Agreement, and, after written notice by the Developer of such failure, the Authority has
failed to cure such noncompliance within ninety (90) days of receipt of such notice, or, if such
noncompliance cannot reasonably be cured by the Authority within ninety (90) days, of receipt
of such notice, the Authority has not provided assurances, reasonably satisfactory to the
Developer, that such noncompliance will be cured as soon as reasonably possible.
Section 5.2 Action to Terminate. Termination of this Agreement pursuant to Section
5.1 must be accomplished by written notification by the Developer to the Authority within sixty
(60) days after the date when such option to terminate may first be exercised. A failure by the
Developer to terminate this Agreement within such period constitutes a waiver by the Developer
of its rights to terminate this Agreement due to such occurrence or event.
Section 5.3 Effect of Termination. If this Agreement is terminated pursuant to this
Article V, this Agreement shall be from such date forward null and void and of no further effect;
provided, however, the termination of this Agreement shall not affect the rights of either party to
institute any action, claim or demand for damages suffered as a result of breach or default of the
terms of this Agreement by the other party, or to recover amounts which had accrued and
become due and payable as of the date of such termination. Upon termination of this Agreement
pursuant to this Article V, the Developer shall be free to proceed with the Project at its own
expense and without regard to the provisions of this Agreement; provided, however, that the
Authority shall have no further obligations to the Developer with respect to reimbursement of the
expenses set forth in Section 3.2.
10
ARTICLE VI
ADDITIONAL PROVISIONS
Section 6.1 Restrictions on Use. The Developer agrees for itself, its successors and
assigns and every successor in interest to the Development Property, or any part thereof, that the
Developer and such successors and assigns shall operate, or cause to be operated, the Project as
an aquatic education facility, as well as an office and warehouse facility and shall devote the
Development Property to, and in accordance with, the uses specified in this Agreement.
Section 6.2 Conflicts of Interest. No member of the governing body or other official
of the Authority shall have any financial interest, direct or indirect, in this Agreement, the
Development Property or the Project, or any contract, agreement or other transaction
contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such
member of the governing body or other official participate in any decision relating to the
Agreement which affects his or her personal interests or the interests of any corporation,
partnership or association in which he or she is directly or indirectly interested. No member,
official or employee of the Authority shall be personally liable to the Authority in the event of
any default or breach by the Developer or successor or on any obligations under the terms of this
Agreement.
Section 6.3 Titles of Articles and Sections. Any titles of the several parts, articles and
sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 6.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by any party to any
other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally, and
or at such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other, as provided in this Section.
4608235v1
(a) in the case of the Developer is addressed to or delivered personally to:
Mr. Jim Wise,
Bluewater Capital Management II, LLC
5885-149 Street West
Apple Valley, MN 55124
(b) in the case of the Authority is addressed to or delivered personally to the
Authority at:
Apple Valley Economic Development Authority, Minnesota
Apple Valley Municipal Center
7100 West 147 Street
Apple Valley, MN 55124
Section 6.5 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 6.6 Law Governing. This Agreement will be governed and construed in
accordance with the laws of the State.
Section 6.7 Provisions Surviving Rescission or Expiration. Sections 4.5 and 4.6 shall
survive any rescission, termination or expiration of this Agreement with respect to or arising out
of any event, occurrence or circumstance existing prior to the date thereof.
Section 6.8 Assignability of Agreement. This Agreement may be assigned only with
the consent of the Authority.
4608235v1
Section 6.9 Expiration. This Agreement shall terminate on December 31, 2017.
12
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and on its behalf and its seal to be hereunto duly affixed, and the Developer has
caused this Agreement to be duly executed in their names, on or as of the date first above
written.
4608235v1
APPLE VALLEY ECONOMIC
DEVELOPMENT AUTHORITY,
MINNESOTA
By
Its President
By
Its Secretary
BLUEWATER CAPITAL MANAGEMENT II, LLC
By
Its
By
Its
13
4608235v1
EXHIBIT A
Parcel Identification Numbers of Development Property
01- 52200 -01 -030
A -1
4/30/2012
Wise Aquatic Center -
Bids per Lampert plan dated - Remodel area approximately 12,368
Costs to be reimbursed by EDA funds
Architect 21,500.00
Plumbing $121,600.00
Excavation $2,000.00
Concrete/Masonry $55,612.00
$64,400.00
Concrete Plank $46,221.00
Demolition-Soft $39,900.00
Demolition-Hard $70,000.00
Concrete Panels $69,904.00
Structural Steel, Joists/Deck $84,500.00
Int/Ext. steel stairs $11,600.00
Built Up Roof $61,440.00
Bleachers $33,088.00
Lockers $22,724.00
Overhead Door $558.00
Fire Sprinkler $23,110.00
HVAC $86,950.00
$18,320.00
Flooring $25,000.00
Drywall $21,500.00
Accoustical Ceiling $10,600.00
Windows/Front Entry $25,400.00
Painting $43,027.00
Electrical $59,840.00
Total: $ 1,018,794.00
Note: Lead Times
Fabcon 7-8 weeks
Lift 7 weeks
Steel 6-7 weeks
Bleachers 7 weeks
Project Request
• Owner/Developer—Jim Wise
• Location 'SO85-149th St. VK(VenstarlS)
• Approx. 41,5OO sq. ft. warehouse building; constructed inlg89.
• Most of building is now vacant
• Potential Use: Convert approx. 18,000 sq. ft. into aquatic training
facility
• 8 pool, bleachers, locker rooms, and some office areas.
• Assistance to remove roof and support structures to
accommodate the in-ground pooI; and abate some mold.
• Total project cost: Approximately $2 million.
• Assistance Request: $149,900
• Projectwillstart byiune 30th and be completed by December
2012.
1
Funding Source
• 2010 —Changes to Tax Increment Financing Iaw
• 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 byJuly 1, 2011; funds spent by December 31,
2011.
• 2011 — Legislation extended
• Construction must start byJuly 1, 2012, funds spent by December
30, 2012.
Project Analysis
Wise Swim Academy:
• 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 p ject or a significant
reinvestment in a building with history of high vacancy rates;
• Improve usability and structural integrity of older commercial
building;
• Address safety of employees and customers;
• AIIow new businesses to occur that create new jobs in Apple
Valley, including both construction and permanentjobs;
2
3
4
5
Recommended Action
• Adopt Draft resolution approving Development
Agreement for Bluewater Capital Management 11,
LLC to provide $149,900 for construction costs at
Wise Aquatic Facility — 5885-149th Street W.
City of Apple
Valle
TO: Economic Development Authority, and
Tom Lawell, Executive Director
Action Requested:
MEMO
Finance Department
FROM: Ron Hedberg, Finance Director
DATE: May 2, 2012
SUBJECT: Adopt Resolution Authorizing the Execution of a Certificate of Completion to
Shervoss Company, Inc,
Introduction
The Economic Development Authority (EDA) is asked to authorize the execution of a certificate of
completion for the development agreement with Shervoss Company, Inc. The Shervoss Company
entered into a development agreement for the construction of a 64 unit hotel (the Americlnn Hotel), a
restaurant (Old Chicago) and conference center/ banquet facility in 1995. The current owner is
seeking action from the EDA indicating that they have completed the improvements as called for in
the agreement.
Staff Recommendation
Staff recommends the adoption of the attached resolution authorizing the execution of a
certificate of completion to Shervoss Company, Inc.
Adopt resolution authorizing the execution of a certificate of completion to Shervoss Company,
Inc.
APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. EDA-12-
A RESOLUTION AUTHORIZING THE EXECUTION OF A CERTIFICATE OF
COMPLETION TO SHERVOSS COMPANY, INC.
WHEREAS, in May 1995, the Apple Valley Economic Development Authority ("EDA")
entered into a Development Assistance Agreement ("Agreement") with Shervoss Company, Inc.
("Company"), a Minnesota corporation.
WHEREAS, the Agreement stated the EDA would furnish the Company with a
Certificate of Completion once the required site improvements had been substantially completed,
and the Company had submitted a written request for the Certificate of Completion.
WHEREAS, all required site improvements have been completed, and the Company has
requested the EDA supply the Certificate of Completion.
NOW, THEREFORE, BE IT RESOLVED, by the Board members of the Apple Valley
Economic Development Authority, that the EDA President is hereby authorized to sign the
Certificate of Completion in accordance with the Agreement.
ATTEST:
ADOPTED this day of , 2012.
, Secretary
Larry Severson, President
CERTIFICATE OF COMPLETION
WHEREAS, the Apple Valley Economic Development Authority (the "Authority") and Shervoss
Company, Inc., a Minnesota corporation (the "Developer"), have executed a Development Assistance
Agreement, dated as of May 11, 1995 (the "Development Agreement"), with respect to the completion by the
Developer of certain improvements (the "Improvements"), more specifically, a 64 unit hotel, a restaurant and
conference center/banquet facilities on certain land (the "Development Property") described in the Development
Agreement and the attached Exhibit "A"; and
WHEREAS, said Developer has to the present date substantially performed its undertakings under the
Development Agreement in a manner deemed sufficient by the Authority to pemit the execution of this certificate
pursuant to Section 3.4 of the Development Agreement;
NOW, THEREFORE, this is to certify that the Improvements have been completed on the
Development Property in substantial conformance with the terms of the Development Agreement.
Dated
, 2012 APPLE VALLEY ECONOMIC
DEVELOPMENT AUTHORITY
By. Larry Severson
Its: President
EXHIBIT A
DEVELOPMENT PROPERTY
The Development Property consists of the following described
properties, all located in the City of Apple Valley, Dakota County,
Minnesota:
Lot 1, Block 1, Apple Valley Commercial
Addition.
City of Apple
EDA
MEMO
TO:
FROM: Bruce Nordquist, Community Development Director, AICP
DATE: May 2, 2012
SUBJECT: GREATER MSP — Annual Report and Membership Renewal
Community Development
President and Board Members of the Economic Development Authority,
Executive Director
In January, 2011, the EDA was introduced to the idea of a new regional economic development
partnership. The EDA contributed an initial $10,000 from $94,000 in funds returned from the
dissolution of the Twin Cities Community Capital Fund. The annual renewal has been
requested.
Dues are based on city population. Due to the unique outcome of the 2010 Census, and
GREATER MSP fee schedule, cities above 50,000 pay $25,000. Apple Valley's reported
population of 49,084 requires only $10,000 contribution to renew. Each of our neighboring
cities: Burnsville, Lakeville, Eagan and Rosemount are members, as is Dakota County through
the CDA.
When the EDA last discussed membership, in early 2011, it was unclear how quickly the
organization would position itself and Apple Valley would benefit. Three years was thought to
be a reasonable time frame and substantial progress is already being made.
As an organization, GREATER MSP has:
• Hired a CEO, Michael Langley.
• Hired a staff team to represent the Region and attend national business development
conferences.
Represented the Region with site selectors.
• Formed a 45 member Partner Advisory Council that represents public and private interest
within the Region. Anders Tollsten, working closely with Bruce Nordquist, represents
Apple Valley's economic development interests with the Advisory Council interest on
the Advisory Council.
As a member, the City of Apple Valley, in partnership with GREATER MSP has:
• Attended member events and networking opportunities.
• Participated in affiliated Regional Council of Mayor and Dakota County CDA led
economic development round tables.
• Lead and participated in meetings related to attracting Stream Global Services.
10
Attended Apple Valley Chamber events.
Evolved in our member relationship, starting as part of the region and most recently, to
be recognized by CEO Michael Langley for the positive and successful way we do
economic development.
While the GREATER MSP relationship continues to deepen, we are becoming a "go to" City for
both national and international business opportunities that are looking at our Region, our City.
Recommendation: Authorize, with available EDA funding, the annual membership in
GREATER MSP at a cost of $10,000.
GREATER MSP
Minneapolis St. Paul Region' Economic Development Partnership
400 Robert Street North, Suite 1520
St, Paul, MN 55101
651-287-1362
sara.barrow eaterms .or
City of Apple Valley
Bruce Nordquist
7100 147th St. W
Apple Valley, MN 55124
2012 Investment
GREATER
IM Invoice
Invoice Date: 03/30/2012
Invoice
11
Number:
Minneapolis Saint Paul Regional Economic Development Partnership
Description
MAKE ALL CHECKS PAYABLE TO:
GREATER MSP
Attn: Sara Barrow, Director Investor Relations
400 Robert Street North, Suite 1520
St. Paul, MN 55101
Thank you very much for your investment in GREATER MSP!
Quantity
1
Terms
_ • .•
Net 30
r $10,000,00
Rate 1 Amount
Subtotal:
Total:
Payment/Credit Applied:
Tax:
Balance:
Please direct any inquiries to Sara Barrow at (651) 287-1362
Due Date
$10,000.00
$10,000.00
$0.00
$10,000.00
$0.00
$10,000.00
GR
A TER
Dear GREATER MSP Partner:
Enclosed is your copy of the 2011 Annual Report for GREATER MSP. I am sure
that you share our pride in building this organization and helping to tell the
region's story around the world. The Greater MSP region is primed to take its
place as a globally competitive region and leading world economy! Together we
can make that happen.
Thank you for your support of GREATER MSP. Without your engagement, your
ideas, your enthusiasm, your talent and your committed resources, we couldn't
have come this far as quickly as we have. I am proud of the organization we have
built and the work we have begun.
Please take a moment and read the enclosed report. It is also available at
ww eaterms .or! Let me know if you need extra copies. I look forward to
seeing you at our Spring Investor Meeting at the Minneapolis Institute of Arts on
May 9 Please make sure that date is on your calendar.
Yours in regional excellence,
CEO, GREATER MSP
, 100 Robert, Street North, Suite 1520 Saint Raul, Minnesota SEiiii1101
Where
business
and people
prosper.
GREATER MSRm
Minneapolis Saint Paul Regional Economic Development Partnership
•
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•$E$11
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win
Just over a year ago, private and public leadership in our
community together to create a new future for our
region. After much thoughtful analysis and discussion by the Itasca Project, we set
out to unite the region in a coordinated economic development effort. The partnership we
felt among leaders from many companies and from our cities and counties emboldened
us to start the Minneapolis-Saint Paul Regional Economic Development Partnership
(GREATER MSP).
We live in a great region, filled with smart people, great businesses, engaged |oadership, and an outstanding quality ot life.
Yet our region's job growth was lagging behind the national average and we weren't realizing our fair share of economic
expansion. In order to ensure our region's future prosperity, we needed to reverse the job loss trajectory and bring new
opportunity to the region. To do this required a shift in our approach to economic development.
GREATER MSP is poised to drive growth and expansion of the region's economy by retaining, expandin@, and
attracting business and talent to the 13^oounty Greater MSP region. Political boundaries don't determine
business success. It is the assets of this community a strong workforce, top education and research faoUities, a
well-planned infnastruotune, and a drive for economic excellence that define what we can offer businasses, and these
transcend boundaries.
GREATER MSP will succeed because it is a best-in-class organization, led by an experienced staff and supported by a
Board of business and public-sector leaders committed to coordinating business investment and creating jobs across
the region. It plays a distinct role that will enhance the economic development efforts of other organizations and
invigorate the Greater MSP business community.
We've hit the ground running and we're not looking back. But there is still
much work to do and many oppor unities to capture. We couldn't have come
so far so quickly without the shared vision of all our region's leaders. We will
work to make this an even more successful and vital community; one with
both a great past and a bright future.
Sincerely,
Douglas Baker Jr.
Chairman of the Board
t
Stu rI
•
T RIVER ENV 0
REATER MSP wi I I accelerate }gib
growth and capital investment in
the greater MSP Region by:
LEADING regional economic strategy
f.
development, aligning with regional
partners to target key industry sectors for
growth.
BRANDING A CS MARKETING
our region to business decision
makers, site - location consultants,
workers, and residents.
SERVING business clients as
the region's "one -stop shop"
for retention, expansion, and
recruitment projects.
) 408 ,
Yours in regional excellence,
Michael Langley
CEO, GREATER MSP
We accomplished much, but there is still much to do.
Regional partnership is the key to accelerating our job growth
and realizing significant new investment in our region. With
tremendous help and insight from public and private partners throughout the 13-county
Metropolitan Statistical Area (K4SA), we are now serving the region with a straightforward
vision and mission for our work together.
Our vision is clear: We see the Greater MSP region recognized as a globally leading
economy. The key word in this statement is recognized. With a gross domestic product
of $200 Billion, we are a significant global economic region - in fact if we were a
country, we'd be the 44th largest in the world. We lead the world in both traditional strengths such as food production,
agribusiness, and financial services, as well as new technology sectors such as medical devioes, health semices,
education, and water quality. It's time to make sure that the rest of the world's investors, decision makers, talented
wmrkers, and others realize this, too.
GREATER MSP's organizational mission is to accelerate job growth and capital investment in the region. It is only through this
ongoing economic vitality and growth that we will continue to be a place where business and people prosper on a global scale.
And finally, we built our organization's operational infrastructure and started on the path to secure our financial future.
It has been an amazing year and I've loved every minute I've been here. |'m proud to call myself a Minnesotan, and
|'m proud to represent GREATER MSP. We are starting to see the momentum build. We have only just begun to see
how powerful our actions can be by working together and giving visibility to what makes this region great. | thank you
for all your support and look forward to our continued partnership.
�
In 20I1. our work was focused in four areas:
First, in partnership with leaders and economic development
practitioners from around the region, we developed an economic
development strategy that leverages our region's business strengths
and identifies the strongest opportunities for future growth.
Second, we developed a regional brand marketing strategy that
promotes how this region drives business.
Third, we developed a protocol and pipeline to connect business
expansion opportunities with regional and local resources and
GREATER MSP
Board of Directors
CHAIR
Douglas Baker, Jr., Ecolab, Inc.
VICE CHAIR
Ken Powell, General Mills
SECRETARY
Richard Davis, US Bancorp
TREASURER
David MacLennan, Cargill, Inc.
CEO
Michael Langley, GREATER MSP
Mary Brainerd, Health Partners
Marilyn Carlson Nelson, Carlson
Douglas Carnival, Of Counsel, McGrann
Shea, Carnival, Straughn and Lamb
Mayor Chris Coleman, City of Saint Paul
Benjamin Fowke, Xcel Energy, Inc.
John Griffith, Target
Commissioner Joseph Harris,
Dakota County
Randall Hogan, Pentair
Virginia Hubbard Morris,
Hubbard Broadcasting
Jay Lund, Andersen Corporation
David Mortenson, Mortenson Construction
Russ Nelson, Nelson, Tietz and Hoye Inc.
Laura Oberst, Wells Fargo Bank
Chris O'Connell, Medtronic, Inc.
Commissioner Mike Opat, Hennepin County
Christopher Policinski, Land O'Lakes, Inc.
Commissioner Victoria Reinhardt,
Ramsey County
Mayor R.T. Rybak, City of Minneapolis
Commissioner Rhonda Sivarajah,
Anoka County
FORMATION AND GOVERNANCE
ta bi
GREATER MSP is a private public partnership
funded by business, and city and county
goverrirrients We are committed to producing a me aningful
return on their investments. In early 2011, we received
our 501(c)3 status and completed the formation of our
organizational infrastructure - step one of this commitment.
GREATER MSP
Board of Directors
Our first Board members, most from the Itasca Project's job growth
task force, agreed unanimously on the need for a robust Board of
seasoned leaders from both the public and private sectors and from
across the 13-county Greater MSP region.
Today, our Board of Directors reflects our region's diversity and
unique assets. Members represent businesses from a wide
range of industries and geographies, and include four county
commissioners, and the mayors of Minneapolis and Saint Paul.
All are fully committed to the region's business community and
its economic success.
Partnership
Advisory Council
Established by the organization's bylaws, this Council advises
and supports the GREATER MSP Board of Directors. It is
chaired by members of the Board, and includes more than 50
economic development partners, practitioners, investors, and
organizations involved in economic development functions
from throughout the Greater MSP region.
Advisory Council working groups oversee and ensure the
success of our operational protocol, marketing, and regional
product improvement.
GREATER MSP professional team
In 2011, we hired our CEO, Michael Langley, a nationally recognized economic development leader,
and staffed four organizational teams: Strategy & Research, Marketing & Communications, Business
Investment, and Operations.
Joel Akason
Director, Business Investment
Sara Perlman Barrow
Director, Investor Relations
Carolyn Bates
Research Analyst
Sara Benedict
Human Resources, Generalist
Michael Brown
Vice President,
Marketing & Communications
Gene Goddard
Director, Business Investment
David Griggs
Vice President,
Business Investment
Michael Langley
CEO
Mary Jo Lewis
Executive Assistant
to Michael Langley
Micki Mathieson
Accounting Manager
Ted Mondale
Vice President, Strategy & Research
Amy Quaintance
Administrative Assistant
Kathy Schmidlkofer
Executive Vice President
Gita Sitaramiah
Director,
Marketing & Communications
Julia Spencer
Investment Associate
Val Vannett
Director, Strategy & Research
"As an investor in GREATER MSP, Woodbury is now
part of a global marketing and outreach program."
- Mary Giuliani Stephens, Mayor, City of Woodbury
T't� ACH OUR MISSION, we set aggressive five -year foals
and developed the strategies to reach them.
Five -year goals
Priority -one is to change our region's job- growth trajectory, outpace the U.S. rate of employment
growth, and meet or exceed job- growth rates of competing, high-performing peer groups.
By 2016, GREATER MSP
will support the creation
of 100,000 new jobs in
the Greater MSP region.
Our direct activity will
stimulate a "margin of
excellence" of 25,000 of
these jobs.
A total increase of 100,000 jobs
in GREATER MSP
100,000 New Jobs
Second, we seek significant
returns on our investors' funding.
25% Margin
GREATER MSP of Excellence
margin of
excellence
Projected
regional job
growth
2012 2016
1
For every $1 invested, we will realize:
❑ $50 in new payroll
❑ $100 in increased gross regional product
KEY INDUSTRY SECTORS
INNOVATION AND TECHNOLOGY
R &D centers, software and IT development,
advanced manufacturing, and traditional and
renewable energy development.
HEALTH AND LIFE SCIENCES
Bio -tech industries, healthcare providers and payers,
IT providers, and medical device companies.
FINANCIAL SERVICES AND INSURANCE
Financial advisory and insurance companies.
To create our regional economic development strategy, eleven roundtable meetings
were held with economic development partners throughout the region (one in
each Minnesota county). Together, we assessed opportunities and assets for job
growth and business investment. This input, combined with analysis conducted by
McKinsey & Company, identified five key industry sectors that offer our top growth
opportunities. By focusing on these sectors, we expect to see the greatest return
on our efforts. In each, our region boasts significant strength in knowledge base,
workforce quality, industry infrastructure, and research capabilities.
HEADQUARTERS AND BUSINESS SERVICES
Corporate headquarters, creative and professional services, and data centers.
FOOD AND AGRIBUSINESS
Food processing and production, agrichemicals, and seed production.
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We don't Just make busihe
We make history.
In 2011, we launched a new brand
identity, "Prosper ", in an effort to
galvanize the region on a single path
toward growth. This platform is based on the
insight that our region as a whole owns a proud heritage
of sustained prosperity that continues to benefit the
companies and people who call it home.
We launched our campaign in October of 2011 and
have delivered more than 24 million media impressions.
We doubled the average number of views to our website
(5,759 per month) and our videos were viewed more
than 50,000 times on YouTube.
u iri s - and Ogle
rosper her
PRINT/OUTDOOR ADVERTISING
We highlighted industries and companies that prosper here by
showcasing the talented workforces that drive their success.
LAUNCH EVENT AT PANTAGES THEATER
We introduced our organization and our business and marketing
strategies to the region to engage partners to work and invest with
us, and to become ambassadors for the region. We promoted the
event with more than 1 million media impressions.
GREATER MSP WEBSITE
Our website, www.greatermsp.org, highlights our regional assets and
creates a single destination for prospects to learn about our area. I n
just over two months, we had 14,398 unique visitors, 17,625 total
visits, and 41,950 page views.
SOCIAL MEDIA
We launched the GREATER MSP
Facebook site, Twitter feed and YouTube
channel, which are already raising
awareness across the U.S. and building
regionalism at home.
YOUTUBE
Several videos showcasing the Greater MSP
region were completed and are enticing
viewers to learn more about our region. Find
them at YouTube /greatermsp.
twitter.
You
COLLATERAL
We finished our first regional brochure, which is being distributed in
2012. It is also available at www.greatermsp.org.
OUTREACH
In 2011, GREATER MSP team members began ambitious outreach efforts,
promoting our region and initiating relationships with business leaders and
site - selection consultants worldwide. Visits included Charlotte, Chicago,
Atlanta, and Portland; as well as Tokyo and Harbin, China. Our teams also
met with delegations from Japan, France, Winnipeg, Thailand, and Austria.
201 1 PROJECT COMPLETIONS
We're • ro p your part
GREATER MSP IS COMMITTED TO DRIVING JOB GROWTH through a mix of
attracting new companies to the region, retaining companies who have options to
grow elsewhere, and helping companies located in the region to expand. In every
case, our success is due to the great work of our partners.
We believe that 80% of job growth will come through
retention /expansion efforts and 20% will come through attraction.
Though only operational for a few months in 2011, GREATER MSP was successful in partnering with
regional economic development organizations to realize job growth in the region. Were confident
that these wins represent just the beginning of what's to come.
Attraction
Five 9's LLC will develop and own The Connexion,
a Multi- Tenant, carrier - neutral data center in
Eagan. The result of a concerted effort led by the
City of Eagan to attract data centers, this new data
center will add Tier 3 Data Center space to this
underserved market to accommodate corporate
data centers, colocation and cloud companies, and
disaster recovery end users. Additionally, the new
data center will bring high capacity connectivity
and enhance the region's broadband infrastructure.
GREATER MSP, working with DEED, was able to
help the company leverage key provisions of th
recently passed Data Center I n
and help it m
Retention
Polaris made key product acquisitions in
2011 with the purchase of North Carolina
based Indian Motorcycles and North Dakota
based GEM. When it needed to consolidate its
administrative and showroom space, GREATER
MSP was able to assist Polaris in its initial
site search, resulting in a new lease of 30,000
square feet of secure space in Plymouth.
SUCCESS DATA
FIVE 9'S LLC
Jobs Created: 25 to 50
Square Footage: 138,000
Capital Investment: $50 million
to $75 million
POLARIS INDUSTRIES INC.*
Jobs Created: 80
Square Footage: 30,000
Capital Investment: $500,000
UNISON COMFORT TECHNOLOGIES*
Jobs Created: 83
Square Footage: 30,000
Capital Investment: $12,500,000
CHART, INC.
Jobs Created: 100
Square Footage: 141,000
Capital Investment: $4,000,000
POLAR SEMICONDUCTOR, INC.*
Jobs Created: 300
Square Footage: 98,000
Capital Investment: $90,000,000
PRIME THERAPEUTICS*
Jobs Created: 300
Square Footage: 100,000
Capital Investment: N/A
*Data based on estimates provided.
Expansions
Prime Therapeutics realized an opportunity to grow
and saw great promise in the region's workforce.
With three locations in the area, the company
needed more space, and found it in a nearby
vacant building. GREATER MSP partnered with
DEED to create a financial assistance package to
help cover the costs of facility renovations.
Chart, Inc., located in New Prague, needed to expand
its operations to meet growing demand. With operations
in many locations throughout the US, the company
had many options. A critical factor in its decision
was the ability to find available workforce. When a
location couldn't be found in New Prague, GREATER
MSP helped find a location in Owatonna that met the
company's operational needs, and we informed the
company about workforce availability. Working with
DEED, GREATER MSP was able to help the company
access Minnesota Investment Funds and JOBZ funds to
aid in the expansion.
Polar Semiconductor, Inc. wanted to double
production of its high performance automotive and
electronic IC products at its Bloomington facility.
GREATER MSP worked with the company and the city
to allow Polar to acquire sewer access credits. This
saved the company considerable expense and time,
and allowed for timely acquisition of building permits.
Unison Comfort Technologies, a manufacturer
of innovative commercial and industrial HVAC
systems, wanted to acquire its headquarters
building. GREATER MSP worked with the City
of Minneapolis and the state to make public
infrastructure improvements that made the location
more efficient for the company.
"The programs that GREATER MSP offered helped my client bridge
a significant financial hurdle in order to expand in Eagan. Its quick
response was extremely helpful and greatly appreciated in bringing this
transaction together." - Raymond J. Reese, Senior Vice President, CBRE, Inc.
In 2011, GREATER MSP partnered with Resource
Development Group to help lead our investment
development process. More than two dozen business and
public leaders stepped forward to support the organization's formation
and start-up. Our aim was to raise $2.8 million for 2011 operations. We
exceeded our goal by raising nearly $3.0 million. We are grateful to these
companies, cities and counties for joining us to advance the region.
ANNUAL BUDGET
ALLOCATION GOAL
DRIVE REGIONAL COLLABORATION 10%
MARKETING AND BRANDING 50%
NEW BUSINESS DEVELOPMENT 20%
EXISTING INDUSTRY SUPPORT 20%
In October 2011, we launched a three-year, $15 million
investment campaign that will fully fund GREATER MSP in
its efforts to stimulate regional economic development.
"Successful fundraising depends on leadership's
ability to create a shared vision for the campaign."
- Rob Radcliff, Resource Development Group
201 1 FINANCIAL RECAP (year ending December 31, 2011)
INCOME 2011 ACTUALS 2011 BUDGET +/- BUDGET
STATEMENT (000) (000) (000)
Revenues $2,977 $2,800 + $177
Expenses $2,436 $2,570 - $134
Reserve $541 $230 + $311
These numbers represent an annual run rate of $4.0 million. In accordance with
sound financial management practices, we are building an operating reserve. Through
conservative expense management, we added $400K of marketing expenditure not
originally budgeted (included in actual expenses, above).
BALANCE SHEET (000)
ASSETS
Current Assets $1,349
Fixed Assets $112
LIABILITIES AND NET ASSETS
Current Liabilities $230
Temporarily Restricted Net Assets $690
Net Assets $541
"With the collective efforts of
GREATER MSP and its supporters,
businesses and people around the
country - and the world - will want
to learn more about what makes
this such a great place to live
and do business."
- Laura Oberst, Executive Vice President,
Wells Fargo Bank
2011 INVESTORS
Andersen Corporation
Capital City Partnership
Cargill, Inc.
Carlson
C.H. Robinson
Worldwide, Inc.
Ecolab
General Mills
Great River Energy
HealthPartners
Hubbard Broadcasting, Inc.
"GREATER MSP allows all of us to sit at the table
together and to think regionally and globally to ensure
our continued growth and success."
- Mike Opat, Chair, Hennepin County Board of Commissioners
IN -KIND INVESTORS
Capital City Partnership
General Mills
General Office Products
Economic Development Services, Inc.
H. Larson Photography
Haberman & Associates
Haskell's
Hubbard Broadcasting, Inc.
Itasca Project
KPMG LLP
McKinsey & Company
McGrann Shea Carnival Straughn and Lamb
Metropolitan Airports Commission
Land 0' Lakes, Inc.
Medtronic, Inc.
Mortenson Construction
The Mosaic Company
Nelson Tietz and Hoye, Inc.
Pentair, Inc.
Target Corporation
US Bancorp
Wells Fargo Bank
Xcel Energy, Inc.
Anoka County
City of Apple Valley
City of Belle Plaine
City of Bloomington
City of Burnsville
City of Chaska
City of Eagan
City of Edina
City of Elko New Market
City of Jordan
City of Lake Elmo
City of Minneapolis
Minneapolis Foundation
Minneapolis Regional Chamber of Commerce
Minnesota State Chamber of Commerce
Minnesota Wild
Nelson Tietz & Hoye, Inc.
Padilla Speer Beardsley, Inc.
Phillips Distilling Company
Sage Hunter
St. Croix Promotions
Sullivan Cotter and Associates, Inc.
Tunheim
Wells Fargo Bank
Unisys
City of New Prague
City of Prior Lake
City of Rosemount
City of Saint Paul
City of Savage
City of Shakopee
City of Woodbury
Dakota County
Hennepin County
Ramsey County
Scott County
Washington County
PARTNER ADVISORY COUNCIL MEMBERS
John Griffith, Co -Chair
Target Corporation
Russ Nelson, Co -Chair
Nelson, Tietz and Hoye Inc.
Margaret Anderson Kelliher,
Minnesota High Tech Association
Megan Barnett - Livgard, City of Monticello
Collin Barr, Ryan Companies
Cecile Bedor, City of Saint Paul
Denise Beigbeder, Ramsey County
Bill Blazer,
Minnesota Chamber'of Commerce /Grow MN!
Paul Cerkvenik, MN Private Colleges
Katie Clark, Minnesota Trade Office
Patrick Connoy, Hennepin County
Caren Dewar, Urban Land Institute Minnesota
Marlys Dunne, Xccent, Inc.
Wayne Elam, Commercial Realty Solutions
Chris Eng, Chisago County
Steve Fisher, Medtronic, Inc.
Pat Born, Metropolitan Council
Don Haller, Connexus Energy
Jeff .Hamiel, Metropolitan Airports Commission
Jon Hohenstein, City of Eagan
Jim Hovland, Mayor, City of Edina
Scott Johnson, Xcel Energy
Bob Kill, Enterprise Minnesota
Janna King, Economic Development Services, Inc.
Todd Klingel, Minneapolis Regional Chamber of Commerce
Matt Kramer, Saint Paul Area Chamber of Commerce
Curt Larson, City of Blaine
Kim Lindquist, City of Rosemount
Mark Lofthus, Minnesota Department of
Employment and Economic Development
Scott Marquardt, Southwest Initiative Foundation
Tim Mulcahy, University of Minnesota
David Olson, Minnesota Chamber of Commerce
Ewald Petersen, Commissioner, Sherburne County
Mark Phillips, Commissioner, Minnesota Department of
Employment and Economic Development
Cathy Polasky, City of Minneapolis
Mary Rothchild ,
Minnesota State Colleges and Universities
John Schlagel, Schlagel Manufacturing
Janelle Schmitz, City of Woodbury
Gary Shelton, Scott County
John Sullivan, Carver County
Anders Tollsten, Tollridge, Inc.
Dale Wahlstrom,
Lifescience Alley /Bio Business Alliance of Minnesota
Charlie Weaver, Minnesota Business Partnership
Gene Winstead, Mayor, City of Bloomington
David Wright, US Bancorp
knotia
our region to corne
together and celebrate
our strengths and
market them to
the world.”
was time for
Christopher Policiiiski, CE.0 and
President, Land 0' Lakes, Inc,
GREATER m s pTm
Minneapolis Saint Paul Regional Economic Development Partnership
www.facebook.cornlgreaterrnsp
twitter*
www.twitter.corntgreaterrnsp;
The handle is @GreaterMSP
You
youtube.com/greatermsp
Website: www.greatermsp.org
Email: businessdevelopment@greaterrnsp.org
Zoom Prospector/G1S site: www.greatermspprospector.com
651-287-1300
400 North Robert St., Suite 1520, Saint Paul, MN 55101
CITY OF APPLE VALLEY
ORDER FOR SPECIAL BOARD MEETING
I, Larry S. Severson, President of the Apple Valley Econoinic 'Development
Authority (EDA), hereby order that a special Board meeting of the EDA be held at
Apple Valley Municipal Center, 7100 - 147th Street W., on Monday, the 7th day of
May, 2012, at 3:00 p.trt., to continue a public hearing on a Business Assistance
Policy, review a Tax hicrement Finance (TIF) Policy, take actions -elated to the
Master Development District, establish a TIF 14 District, consider development
agreements, and provide project updates.
In accordance with this order, the Secretary is requested to provide notice of
this meeting following the requirements of the By-laws.
DATED this ist day of May, 2012.