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HomeMy WebLinkAbout06/27/2002ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota June 27, 2002 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held June 27th, 2002, at 7:30 o’clock a.m., at Apple Valley Municipal Center. PRESENT: President Severson; Commissioners Edgeton, Erickson, Goodwin (attended at 7:47 a.m.), Grendahl, and Hamann-Roland. ABSENT: Commissioner Sterling. Staff members present were: Executive Director Lawell, Secretary Mueller, Assistant to the City Administrator Grawe, and Community Development Director Kelley. President Severson called the meeting to order at 7:35 a.m. APPROVAL OF AGENDA MOTION: of Hamann-Roland, seconded by Grendahl, approving the agenda for today’s meeting as amended. Ayes - 5 - Nays - 0. MINUTES MOTION: of Erickson, seconded by Grendahl, approving the minutes of the special meeting of November 8th, 2001, as written. Ayes - 5 - Nays - 0. APPOINTMENT OF OFFICERS Resolution No. EDA-02-1 MOTION: of Hamann-Roland, seconded b y Edgeton, adopting appointing 2002 officers of the Economic Development Authority as: President - Severson, Vice-President - Goodwin, Secretary - Mueller, Treasurer - Erickson, and Assistant Treasurer - Mueller. Ayes - 5 - Nays - 0. QUESTAR EDUCATIONAL SYSTEMS SITE ACQUISITION Mr. Kelley reviewed his memo dated June 24, 2002, describing the offer of Questar Educational Systems, Inc., to acquire Outlot A, Valley Business Park 2nd Addition, for the purpose of constructing two buildings of approximately 50,000 square feet each. The lot is located south of 147th Street between Pilot Knob Road and Energy Way. One building would be constructed on the east part of the lot immediately and the second building would be constructed in three to four years. Because state law requires property sold by the EDA to be put to use within one year, a three-year option agreement is proposed for the western part of the lot. It has agreed to pay the asking price of $1.75 per square foot for the property with a price escalator clause for the option on the western part of the lot. ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota June 27, 2002 Page 2 Resolution No. EDA-02-2 MOTION: of Erickson, seconded by Hamann-Roland, adopting approving a Purchase Agreement for land sale with Questar Educational Systems, Inc., for the eastern part of Outlot A, Valley Business Park 2nd Addition, at a price of $1.75 per square foot, to construct a 50,000 square-foot light industrial/office building, subject to conditions contained in the documents, and authorizing the President and Secretary to sign the necessary documents. Ayes - 5 - Nays - 0. Resolution No. EDA-02-3 MOTION: of Hamann-Roland, seconded by Grendahl, adopting approving a three-year Option Agreement for land sale with Questar Educational Systems, Inc., for the western part of Outlot A, Valley Business Park 2nd Addition, at an initial price of $1.75 per square foot, to construct a 50,000 square- foot light industrial/office building, subject to conditions contained in the documents, and authorizing the President and Secretary to sign the necessary documents. Ayes - 5 - Nays - 0. OWENS PROPERTIES LETTER OF INTENT ON SITE Mr. Kelley reviewed his memo dated June 24, 2002, describing the letter of intent by J.L. Owens Properties, L.L.C., to purchase Lot 1, Block 2, Valley Business Park, for the purpose of constructing an office/warehouse building of approximately 25,000 square feet. The lot is located at the southwest corner of 147th Street and Energy Way. The offer is for a price of $1.51 per square foot with the EDA responsible for the cost of preparing an ALTA survey and Phase I environmental report. It is recommended the offer be rejected and a counteroffer made with the current asking price of $1.75 per square foot, consistent with other sales. MOTION: of Grendahl, secon ded by Erickson, rejecting the Letter of Understanding and Intent dated June 4, 2002, from J.L. Owens Properties, L.L.C., to purchase Lot 1, Block 2, Valley Business Park, at a price of $1.51 per square foot; and making a counteroffer to sell the property for $1.75 per square foot with the cost of the ALTA survey and any Phase I environmental report borne by the purchaser as recommended in the Community Development Director’s memo dated June 24, 2002. Ayes - 5 - Nays - 0. FIRST INDUSTRIAL ACQUISITIONS MARKETING & DEVELOPMENT PROPOSAL Mr. Kelley reviewed his memo dated June 24, 2002, describing an agreement proposed by First Industrial Acquisitions, Inc., to act as marketing and development agent for the remaining approximately 10 acres of the Valley Business Park site. These services were provided by Wispark Corporation before it ceased operations in Minnesota. There would be no annual management fee and First Industrial would recover its costs and profit through sales commissions. The EDA would be responsible for half of the direct marketing and surveyor costs, which would ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota June 27, 2002 Page 3 be deducted from land sales proceeds as they occur. (Commissioner Goodwin attended during this time.) MOTION: of Erickson, seconded by Hamann-Roland, approving an Agreement for Land Development with First Industrial Acquisitions, Inc., for marketing and development of undeveloped land in Valley Business Park, as attached to the Community Development Director’s memo dated June 24, 2002, and authorizing the President and Secretary to sign the same. Ayes - 6 - Nays - 0. OWENS PROPERTIES PURCHASE AGREEMENT DISCUSSION Brian VanHoof, of Paramount Real Estate, and Joel Owens attended at this time and explained that the initial offer on the lot was based on the cost of property available in Rosemount. Mr. Owens said he now has 22 employees and buys, sells, and refurbishes IBM mainframe products. He is expanding into the service business and expects to employ 30 to 40 people in a new facility. They would probably need to increase the size of the lot by about 100 feet to the south. Mr. Kelley described the counteroffer authorized by the Board. A fast track process has been established for development of this property. As long as the building meets the pre-approved standards, plans do not have to come back for approval. A permit can simply be issued. Mr. Owens said he is not opposed to paying $1.75 per square foot and would proceed with a purchase agreement. NWA FEDERAL CREDIT UNION IMPROVEMENT COSTS Resolution No. EDA-02-4 MOTION: of Hamann-Roland, seconded by Goodwin, adopting accepting certified site work improvement costs for NWA Federal Credit Union, in the amount of $2,969,009.00, to be recorded on the Taxable Tax Increment Revenue Note for reimbursement. Ayes - 6 - Nays - 0. VALLEY OLDS-PONTIAC-GMC CONDEMNATION STATUS Mr. Kelley advised the Board that the condemnation petition to acquire the Valley Olds-Pontiac- GMC site, at 7500 West 145th Street, was challenged in Court and the Court ruled against the EDA. No appeal is proposed. The owners of Valley Sales have determined they did not want to invest any more money in the process. They are still looking for an alternate site in the City and are considering how to make some improvements to the current site. The Board stated it would offer continuing support to encourage the business to remain in the City. FISCHER MARKET PLACE GUARANTEE RELEASE ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota June 27, 2002 Page 4 MOTION: of Erickson, seconded by Hamann-Roland, approving release of the $5,219,843.00 letter of credit financial guarantee for Fischer Market Place improvements, as listed in the Planning Department’s memo dated June 24, 2002. Ayes - 6 - Nays - 0. SOUTHPORT CENTRE REFINANCING MOTION: of Erickson, seconded by Grendahl, approving an Estoppel Certificate, as requested by Thrivent Financial for Lutherans, related to refinancing by entities owning Southport Centre property, and authorizing the President and Secretary to sign the same. Ayes - 6 - Nays - 0. MOTION: of Goodwin, seconded by Edgeton, to adjourn. Ayes - 6 - Nays - 0. The meeting was adjourned at 8:25 o’clock a.m.