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HomeMy WebLinkAbout10/22/1998ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 22, 1998 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota; held October 22nd, 1998, at 7:30 o’clock a.m., at Apple Valley City Hall. PRESENT: President Severson; Commissioners Edgeton, Erickson, Goodwin, Grendahl, and Sterling. ABSENT: Commissioner Humphrey. Staff members present were: Executive Director Gretz, Secretary Mueller, Bond Counsel O’Meara, Assistant to the City Administrator Grawe, Community Development Director Kelley, and Public Works Director Miranowski. President Severson called the meeting to order at 7:30 a.m. APPROVAL OF AGENDA MOTION: of Grendahl, seconded by Erickson, approving the ag enda for today’s meeting as presented. Ayes - 6 - Nays - 0. MINUTES MOTION: of Grendahl, seconded by Goodwin, approving the minutes of the special meeting of September 24th, 1998, as written. Ayes - 5 - Nays - 0 (Edgeton Abstained). SALE/DEVELOPMENT CONCORD BUSINESS PARK SITE Mr. Kelley reviewed his memo, dated October 19, 1998, describing the proposed agreement for sale and development of the L.G.S. Concord property which the EDA acquired in 1997. The site is located on the southwest corner of 147th Street and Pilot Knob Road. Wispark Corporation has proposed to purchase and develop the site, in phases, under a master development plan. The first phase would be sold at $.75 per square foot in order to facilitate a speculative building of about 50,000 square feet. He reviewed suggested modifications to the three-year Development Agreement which are recommended for approval. President Severson called the public hearing to order, at 7:38 a.m., to consider sale of the business park property, and noted receipt of the affidavit of publication of the hearing notice. Mr. Kelley noted the terms of the proposed sale, as detailed in his memo. Because the sale and development will be done in phases, it is suggested the Board hold annual hearings in reference to the terms of any sale that might occur over the year. The President asked for questions or comments from the Board and public. There were none and the hearing was declared closed at 7:40 a.m. Resolution No. EDA-98-11 MOTION: of Sterling, seconded by Erickson, adopting approving an Agreement for Land Development and land sale to Wispark ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 22, 1998 Page 2 Corporation for business park property located in Section 26, at the southeast corner of 147th Street and Pilot Knob Road, subject to modifications as recommended by the Community Development Director, and authorizing the President and Secretary to execute the necessary documents. Ayes - 6 - Nays - 0. RESUBORDINATION OF MORTGAGE (Commissioner Edgeton stepped down from the table at this time.) Mr. Kelley reviewed his memo, dated October 19, 1998, concerning resubordination of the EDA’s 1995 loan on property at 7570 West 147th Street, for The Printing Center. The first mortgage is being refinanced and the EDA is requested to again subordinate its mortgage as it had done previously. MOTION: of Erickson, seconded by Goodwin, approving a new Subordination Agreement with Hampton Bank for the loan on property at 7570 West 147th Street, for Karen Edgeton, as attached to the Community Development Director’s memo dated October 19, 1998, and authorizing the President and Secretary to execute the necessary documents. Ayes - 5 - Nays - 0. FISCHER MARKET PLACE (Commissioner Edgeton returned to the table at this time.) Mr. Miranowski reviewed the request for assistance under the Tax Increment Financing Agreement for Fischer Market Place as contained in his memo of October 19, 1998. The request is for site development cost reimbursement for an 86,584 square-foot single-user retail facility. Mr. Gleekel’s letter, attached to the memo, indicated a request was also being made for an office building, however, that has been withdrawn. The retail use will be on the easterly nine acres of Outlot H and result in approximately $869,000 of assistance. Tony Gleekel, representing Fischer Market Place, was present and said they have been negotiating with the retailer for the site. They now have a letter of intent, but gross price is an issue. Without on-site cost reimbursement, they will not be able to complete the sale or enter into a purchase agreement until the price is known. Commissioner Erickson said he has some concern about additional assistance and had hoped Menard’s would be enough to get the project moving. Commissioner Goodwin said it is a judgment call as to when enough assistance has been provided. It was intended that each project would be looked at as it comes in. Mr. O’Meara noted the Supplemental Assistance Agreement specifically provides that this falls under the overall limit of $2,607,228 for on-site cost reimbursement. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 22, 1998 Page 3 Resolution No. EDA-98-12 MOTION: of Goodwin, seconded by Edgeton, adopting approving a Supplement to the Redevelopment Assistance Agreement with Fischer Market Place, LLP, consenting to provide tax increment financing assistance for an 86,584 square-foot single-user retail facility on the easternmost part of Outlot H, Fischer Market Place, and authorizing the President and Secretary to execute the necessary documents. Ayes - 6 - Nays - 0. MOTION: of Sterling, seconded by Erickson, to adjourn. Ayes - 6 - Nays - 0. The meeting was adjourned at 7:53 o’clock a.m.