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HomeMy WebLinkAbout11/08/2001ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota November 8, 2001 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held November 8th, 2001, at 6:00 o’clock p.m., at Apple Valley Municipal Center. PRESENT: President Severson; Commissioners Edgeton, Erickson, Goodwin, Grendahl, Hamann-Roland, and Sterling. ABSENT: None. Staff members present were: Executive Director Lawell, Secretary Mueller, Finance Director Ballenger, City Engineer Gordon, Assistant to the City Administrator Grawe, Public Works Director Heuer, Police Chief Johnson, Community Development Director Kelley, and Human Resources Manager Strauss. President Severson called the meeting to order at 6:00 p.m. APPROVAL OF AGENDA MOTION: of Hamann-Roland, seconded by Grendahl, approving the agenda for tonight’s meeting as presented. Ayes - 7 - Nays - 0. MINUTES MOTION: of Hamann-Roland, seconded by Grendahl, approving the minutes of the special meeting of August 9th, 2001, as written. Ayes - 7 - Nays - 0. VALLEY OLDS-PONTIAC-GMC EXPANSION (President Severson turned the meeting over to Vice-President Sterling at this time.) Mr. Lawell introduced Glenn Nord, representing Joe Graeve, property owner of the Valley Olds-Pontiac- GMC site, at 7500 West 145th Street, who was also present. Mr. Nord referred to his letter of October 12, 2001, objecting to the Board’s action to acquire the property. He asked the Board to reconsider it. Mr. Graeve was not notified this was going to occur and is willing to meet with the Board and discuss improving the structures or anything else on the property. He was served with legal papers commencing condemnation yesterday and would like to find out what the Board wants to see on the property and will consider it. Commissioner Edgeton commented on the expansion plans for Valley Sales approved by the City in 2000. They were ready to proceed with construction when they were unable to renegotiate a lease on the property or purchase it. Mr. Graeve distributed a copy of a letter from Associated Bank dated November 8, 2001, concerning loan arrangements on the property. The issue with Valley Sales was a mortgage on the property and guarantee for payment. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota November 8, 2001 Page 2 Mr. Graeve commented on buildings he has built in other cities and showed photographs of them. He asked the Board to consider what use would be best for the site. He could build a new car dealership on County Road 42 and redevelop the current site for office uses. Tona Dove, of Levander, Gillen & Miller, P.A., representing the EDA in this matter, was present and read a statement to clarify the EDA’s position. Valley Sales is a major employer in the City and located within an existing development district. Another site in the City is not available for the business to relocate. The EDA has the authority to exercise the power of condemnation as granted by the legislature. The forum for dealing with disagreement about the matter is in the condemnation proceedings. The hearing is set for January 9, 2002, with taking scheduled for February 4, 2002. Commissioner Hamann-Roland said the EDA is concerned about timing of redevelopment on the site. The purpose of encouraging redevelopment is to prevent deterioration of commercial property in the City. Mr. Lawell said the condemnation process takes some time before it concludes. The property owner and tenant could get together and continue to discuss their issues and try to reach an agreement. Mr. Nord said, since Mr. Graeve is being sued, he does not believe they can meet with Valley Sales. Mr. Graeve said he could build a new building for Valley Sales in two and a half to three years and then put a new building on the site at 145th and Cedar. He asked for another 60 days to submit a plan. Ms. Dove reviewed the process in serving notice and scheduling a hearing date. If action were delayed, it would involve reserving papers and changing the dates. As far as value on the property, each party has an appraisal prepared. Three commissioners meet, hear the issues, and enter an award. If there is disagreement with the award, it can be appealed to District Court. The Board did not take any action to reconsider its previous actions or delay the proceedings. Mr. Nord noted that he had requested time to submit an additional sketch plan on the property and asked for reconsideration and was turned down. He also noted that there was no participation by Mr. Graeve in previous EDA considerations. VALLEY BUSINESS PARK PROPERTY SALE (President Severson took over the meeting at this time.) Mr. Kelley reviewed his memo dated November 5, 2001, describing the proposed sale of property in Valley Business Park. Interstate Partners, LLC, wishes to acquire a small sliver of land adjacent to its building for an additional driveway connection. It has agreed to pay the asking price of $1.75 per square foot. Resolution No. EDA-01-4 MOTION: of Hamann-Roland, seconded by Goodwin, adopting approving a Purchase Agreement with Valley Business Center I, LLC, for 13,750 ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota November 8, 2001 Page 3 square feet of Outlot A, Valley Business Park, for $24,062.50, subject to conditions contained in the documents, and authorizing the President and Secretary to sign the necessary documents. Ayes - 7 - Nays - 0. MOTION: of Goodwin, seconded by Sterling, to adjourn. Ayes - 7 - Nays - 0. The meeting was adjourned at 7:12 o’clock p.m.