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HomeMy WebLinkAbout02/12/1998ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota February 12, 1998 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held February 12th, 1998, at 7:00 o’clock p.m., at Apple Valley City Hall. PRESENT: President Severson; Commissioners Erickson, Goodwin, Grendahl, Humphrey, and Sterling. ABSENT: Commissioner Edgeton. Staff members present were: Executive Director Gretz, Secretary Mueller, City Attorney Sheldon, City Engineer Gordon, Assistant to the City Administrator Grawe, Park & Recreation Director Johnson, Community Development Director Kelley, and Public Works Director Miranowski. President Severson called the meeting to order at 7:00 p.m. APPROVAL OF AGENDA MOTION: of Erickson, seconded by Humphrey, approving the agenda for tonight’s meeting as amended. Ayes - 6 - Nays - 0. MINUTES MOTION: of Humphrey, seconded by Erickson, approving the minutes of the special meeting of December 11th, 1997, as written. Ayes - 6 - Nays - 0. APPOINTMENT OF OFFICERS President Severson called for nominations for 1998 officers. Commissioner Humphrey nominated the 1997 officers for reappointment. There were no further nominations. Resolution No. EDA-98-1 MOTION: of Humphrey, seconded by Goodwin , adopting appointing 1998 officers of the Economic Development Authority as: President - Severson, Vice President - Sterling, Secretary - Mueller, Treasurer - Erickson, and Assistant Treasurer - Mueller. Ayes - 6 - Nays - 0. SCHOOL DISTRICT 196 STADIUM FINANCING Mr. Gretz reviewed the request of Independent School District No. 196 for issuance of $1,900,000 of 10-year lease revenue bonds to finance construction of stadiums at Apple Valley and Eastview High Schools. This is similar to financing used for the School of Environmental Studies and the bonds would be taxable. It will be recommended that the bonds be insured so, in the event of default, taxpayers would be covered. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota February 12, 1998 Page 2 Commissioner Sterling asked if there is any other method of financing available to the School without using the EDA? Mr. Gretz said the School District would have to address that, but it has made the request to the EDA. There are several problems which will have to be resolved before final issuance of the bonds. President Severson noted this is not a public hearing, but individuals present would be allowed to express their opinions on the bonding mechanism. Wilt Anderson, 5441 West 134th Street, said he believes four high schools can share two stadiums. Additional stadiums will increase the City’s costs of cleaning up litter, dealing with parking problems, etc. He is opposed to using the City as a back door funding source. The School District should use voter-approved financing to construct the stadiums. Lee Strom, 5751 West 125th Street, President of Eastview Athletic Association, spoke in favor of the financing. He noted the facilities are needed by the community as well as the School District. Theresa Hunsberger, 14327 Guthrie Avenue, spoke representing residents near Apple Valley High School, and noted voters approved a $78,000,000 bond issue in 1994. She stated the District spent over $80,000,000 on projects and that is why it is asking for this financing. She commented on noise issues and said a stadium will reduce quality of life and property values in the neighborhood. She asked the Council and EDA to have an environmental impact study done before giving approval. Rick Campins, 14269 Guthrie Avenue, said residents have asked the School District to consider the impact of a stadium on areas east and south of Apple Valley High School. A petition is being filed with the Environmental Quality Board (EQB) in which he believes the City will be the Responsible Governmental Unit (RGU) to review the request. The School District and its architect have indicated they will work with the citizens to assess possible changes to the site. He presented a copy of a petition opposing the stadium. He said when citizens petition the EQB, permits and approvals are not to go forward until an EAW is addressed. Commissioner Humphrey said the EDA and City Council are separate entities and have separate authorities. The EDA’s charge is can this project be financed and is it economically feasible. Other issues may be part of Council action at another time. The other problems will have to be resolved as part of the process if any bonds are to be issued. Commissioner Grendahl expressed concern about an opportunity for public input on the request and asked what the urgency is in the request? Superintendent Haro said, in order to have the stadiums ready for use by Fall of 1998, equipment and bleacher seating need to be ordered as soon as possible. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota February 12, 1998 Page 3 President Severson asked how long it will take to resolve the questions? Mr. Gretz said it depends on the School District answering an EAW, if requested, parking problems, etc. Commissioner Goodwin said the issues appear to relate to the Apple Valley High School site and most of them would occur on only a few evenings. He encouraged the School to limit the evening stadium schedule as much as possible. The Board questioned how the EQB determines the RGU. Mr. Gretz said there are mandatory and discretionary EAWs. EQB rules stipulate the RGU for mandatory ones, while the EQB must rule on the RGU for discretionary ones. Neither the City nor the EDA is the permitting agency in this case. Building permits will come from the State Building Code Office. Mr. Sheldon said if the EAW is discretionary, the EQB makes the determination on whether the State Planning Agency or City will be the RGU. Geri Dirth, Apple Valley Track Coach, commented on the recent survey of youth attitudes which indicated feelings of a lack of community acknowledgment for youth. She asked for approval of the stadiums to give kids a place for positive activities. VAA activities will continue to be there with or without a stadium. Commissioner Goodwin said a lot of decisions are made by City Councils and School Boards without going to the voters; that is their duty. The stadiums will be used for a long time. The alternative to two stadiums is a true neutral site stadium, but that would be more expensive. He supports the decision of the School District. MOTION: of Humphrey, seconded by Goodwin, authorizin g Staff to address problems associated with sites for construction of two School District stadiums and begin the process to prepare bond documents for issuance of $1,900,000 lease revenue bonds as requested by Independent School District No. 196. Ayes - 4 - Nays - 2 (Grendahl and Sterling). SOUTHPORT CENTRE OFFICEMAX/PARTY CITY PROJECTS Mr. Kelley described authorization required from the EDA for construction of OfficeMax and Party City buildings at Southport Centre. Because the property is within a tax increment financing district, EDA approval is needed for conveyance of property and of construction plans. The City Council has approved the site plans and authorized issuance of building permits. Commissioner Humphrey asked what the limit is for food service related uses in the district? Mr. Kelley said restaurant, recreational, and auto related businesses are limited to 25 percent of the total and are now at six percent. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota February 12, 1998 Page 4 MOTION: of Goodwin, seconded by Erickson, approving the Consent to Conveyance an d Assumption of Agreement for Lot 3, Block 1, Southport Centre 2nd Addition; and Lot 7, Block 1, Southport Centre; under the terms of the October 12, 1989, Development Agreement, and authorizing execution of the necessary documents. Ayes - 6 - Nays - 0. MOTION: of Goodwin, seconded by Humphrey, approving Construction Plans and Estoppel Certificate for Lot 3, Block 1, Southport Centre 2nd Addition; and Lot 7, Block 1, Southport Centre; for construction of OfficeMax and Party City buildings, under the terms of the October 12, 1989, Development Agreement, and authorizing execution of the necessary documents. Ayes - 6 - Nays - 0. SCHOOL OF ENVIRONMENTAL STUDIES REFINANCING Mr. Gretz said the bond consultant has reviewed the bonds issued to finance construction of the School of Environmental Studies for the School District and recommends recalling the bonds and reissuing them at lower interest rate. The bonds would be sold, in a negotiated sale, when market conditions are favorable. Costs of reissuance would be covered by interest savings. Resolution No. EDA-98-2 MOTION: of Erickson, seconded by Grendahl, adopting authorizing issuance of Public Project Revenue Refunding Bonds, Series 1996 (Independent School District No. 196 Lease Obligations) and the execution and delivery of a Supplement to Lease Agreement and a Supplement to Trust Indenture in connection therewith. Ayes - 6 - Nays - 0. MOTION: of Grendahl, seconded by Erickson, to adjourn. Ayes - 6 - Nays - 0. The meeting was adjourned at 7:46 o’clock p.m.