HomeMy WebLinkAbout11/07/20126. LAND USE/ACTION ITEMS
This agenda is subject to change by deletion or addition to items until approved by the Planning
Commission on the date of the meeting.
CALL TO ORDER
2. APPROVAL OF AGENDA
3. APPROVAL OF MINUTES OF OCTOBER 17, 2012
4. CONSENT ITEMS
—NONE--
PUBLIC HEARINGS
PLANNING COMMISSION AGENDA
November 7, 2012
7:00 P.M.
Apple Valley Municipal Center
7100 — 147th Street West
A. Menards-Hanson Property I.U.P. — Public hearing to consider an interim use permit to allow for
crushing and temporary storage of concrete material generated from three demolished buildings on
the site.
LOCATION: 6055 — 150th Street West
PETITIONER: Menard, Inc.
A. Consistency of Parkside Village Project TIF Plan with the Comprehensive Plan
Consider resolution finding that the amendment to the "Master Development District" and "Master
Development Program" for the Parkside Village Project "TIF Plan" is consistent with the Apple
Valley 2030 Comprehensive Plan.
7. OTHER BUSINESS
A. Review of upcoming schedule and other updates.
8. ADJOURNMENT
NEXT PLANNING COMMISSION MEETINGS
Wednesday, December 5, 2012
Regular Scheduled Meeting
-Public hearing applications due by 9:00 a.m. on Wednesday, November 7, 2012
-Site plan, variance applications due by 9:00 a.m. on Monday, November 26, 2012
7:00 P.M.
Wednesday, December 19, 2012
Regular Scheduled Meeting
-Public hearing applications due by 9:00 a.m. on Wednesday, November 21, 2012
-Site plan, variance applications due by 9:00 a.m. on Monday, December 10, 2012
NEXT CITY COUNCIL MEETINGS
Thursday, November 8, 2012
Informal 5:30 P.M.
Regular Scheduled Meeting 7:00 P.M.
Tuesday, November 20, 2012
Regular Scheduled Meeting
7:00 P.M.
7:00 P.M.
Regular meetings are broadcast live on Charter Communications Cable, Channel 16. Agendas are also
available on the City's Internet Web Site http://www.cityofapplevalley.org.
CALL TO ORDER
CITY OF APPLE VALLEY
PLANNING COMMISSION MINUTES
OCTOBER 17, 2012
The City of Apple Valley Planning Commission meeting was called to order by Vice-Chair Burke
at 7:00 p.m.
Members Present: Ken Alwin, Tim Burke, Keith Diekmann, Paul Scanlan and Brian Wasserman.
Members Absent: Tom Melander and David Schindler
Staff Present: Community Development Director Bruce Nordquist, City Planner Tom Lovelace,
Associate Planner Kathy Bodmer, City Attorney Sharon Hills, Assistant City Engineer David
Bennett and Department Assistant Joan Murphy.
2. APPROVAL OF AGENDA
Vice-Chair Burke asked if there were any changes to the agenda.
MOTION: Commissioner Alwin moved, seconded by Commissioner Diekmann, approving the
agenda. Ayes - 5 - Nays - 0.
. APPROVAL OF MINUTES OF OCTOBER 3, 2012.
Vice-Chair Burke asked if there were any changes to the minutes. Hearing none he called for a
motion.
MOTION: Commissioner Alwin moved, seconded by Commissioner Diekmann, approving the
minutes of the meeting of October 3, 2012, as written. Ayes - 5 - Nays — 0.
4. CONSENT ITEMS
A. Majestic Cove Apartments Sign Variance — Consideration of a setback variance to allow
for the replacement of an existing monument sign to be constructed at the existing sign's
current location. (PC12-36-V)
LOCATION: Southeast corner of 157th Street West and Cedar Avenue, 7472 — 157th Street W.
PETITIONER: Stephen Haight
MOTION: Commissioner Diekmann moved, seconded by Commissioner Alwin recommending
approval for a 10.7 sign setback variance from the 13' setback requirement for the
Majestic Cove sign at 7472 - 157th Street West, allowing the sign to be located 2.3'
from the newly established right-of-way line of Cedar Avenue, based upon the
following findings:
1. The property owner wishes to replace an existing sign with a new sign in the
same location.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 2 of 11
2. The petitioner will not expand the size nor increase the height of the sign.
3. There will be no negative impacts on neighboring properties resulting from this
variance.
4. The variance is needed based upon actions taken by Dakota County in
connection with the Cedar Avenue reconstruction project and is not a result of
actions taken by the property owner.
And additional conditions:
1. The variance is approved for the sign in the location as of the date of the variance
approval and as depicted on the Dakota County Highway Department drawing
received in City Offices on August 29, 2012.
2. The applicant/owner shall file and record the City Council Resolution granting the
variance against the property at the Dakota County Recorder's Office.
Ayes - 5 - Nays — 0.
5. PUBLIC HEARINGS
--NONE--
6. LAND USE/ACTION ITEMS
A. Parkside Village (formally known as Legacy North) — Consideration of proposed
development zoning amendments, preliminary plat, and site plan/building permit authorization
to allow for two multiple-family buildings totaling 322 units in the former Legacy North
development. (PC12-31-ZSBG)
LOCATION: Northeast corner of Galaxie Avenue and 153rd Street W.
PETITIONER: IMH Special Asset NT-AVN, LLC, and Titan Development.
Associate Planner Kathy Bodmer stated the property owner, IMH Special Asset NT 176-AVN, LLC
and the developer, Titan Development, wish to develop two multiple family buildings with a total of
322 units in the Parkside Village, located on the northeast corner of Galaxie Avenue and 153rd'
Street. They are requesting consideration of amendments to PD-739 Zoning District (Central
Village), preliminary plat and site plan/building permit authorization.
Ms. Bodmer said the Planning Commission held the public hearing for this item at its September
19, 2012, meeting. The revised plans indicate that the number of units has been reduced from 332
units down to 322 units, a reduction of 10 units. The Galante building had been reduced from 134
to 126 units while the Gabella building has been reduced from 198 to 196 units. The units were
reconfigured and some of the smaller units were made larger, but no changes were made to the
footprint of the buildings.
She reviewed characteristics, setbacks, and amenities for the two buildings. She stated the
petitioner requested several amendments to Planned Development No. 739. During the review of
the request to vacate the drainage and utility easements in order to create the buildable lot, Center
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 3 of 11
Point Energy informed the City that it has a gas main located along Galaxie Avenue and 153rd
Street which requires a minimum ten foot (10') drainage and utility easement. As a result, the
building had to be shifted east to ensure it is out of the easement area.
She stated the City Engineer raised a concern about the elevation of the underground garage in
relation to the elevation of the stormwater pond. The petitioner proposes to disconnect the trench
drain and to use a pump to address the potential flooding issue. The City Engineer has indicated
that he is amenable to this solution and would work with the petitioner to finalize the design.
Ms. Bodmer reviewed surface and garage space design, elevation drawings, landscape plans,
vacation of Fontana Trail from Gabella Street to 152nd Street and addressed questions and concerns
that were brought forward from the public hearing. Staff found that the project complies with the
requirements of the zoning and subdivision code requirements and the planned development zoning
district.
Commissioner Alwin inquired if the narrower garage parking spaces for the Galante building would
be allocated to particular units or to residents upon request.
Tony Patinella, Titan Development, LLC, answered they would encourage the use of narrower
parking spaces for those with compact vehicles.
Commissioner Scanlan asked for clarification on the rezoning changes.
Ms. Bodmer summarized that new zones would be created and stated none of the property on the
west side of Galaxie Avenue would be impacted.
Commissioner Scanlan asked of the wing shortening of the Galante building was shortened initially
from what was first shown on the sketch view.
Ms. Bodmer stated the wings were shortened from the sketch plan to the first plan but since the
public hearing the wings were the same length.
Commissioner Diekmann commented on the Galante building and the encroachment into the
drainage and utility easement. He stated that one of the architectural features of that building was
the ability to get to the street level and asked what other design would not create an encroachment.
Ms. Bodmer stated staff is working with the developer. It could take shifting the building, perhaps
working with the utility company to come up with a shorter easement, or coming up with a different
design.
Commissioner Diekmann stated he would rather not lose that feature.
Ms. Bodmer stated the Attorney's office is looking at a solution to keep it a walkable active street
front that is an important design consideration.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 4 of 11
MOTION: Commissioner Diekmann moved, seconded by Commissioner Alwin, recommending
approval to the PD-739 (Central Village) with the following conditions:
a. Rezone Blocks 3, 7, and 8, The Legacy of Apple Valley North, to Zone 3, to
allow those uses as set forth for Zone 1.
b. Rezone all of Lot 1, Block 1, The Legacy of Apple Valley North, to Zone 4
which would allow those retail and commercial uses as set forth for Zone 2
(no mixed-use required) in a single-story building with a 2-story design.
c. The height of the commercial buildings in Zone 4 as measured from grade
shall be a minimum of 25 feet and shall be designed to appear as a two-story
building.
d. Delete Zone lA regulations from Article A31 of the City Code.
e. Allow 10% of parking stalls in an underground parking garage to be 8.5' wide
in Zone 3 adjacent to Galaxie Avenue.
f. Allow the depth of 90 parking stalls to be reduced to 19 in Zone 3 adjacent to
Galaxie Avenue.
Ayes - 5 - Nays O.
MOTION: Commissioner Diekmann moved, seconded by Commissioner Alwin, recommending
approval of retaining Zone 2 zoning designation (mixed use) for Block 9, The
Legacy of Apple Valley North. Ayes - 5 - Nays - 0.
MOTION: Commissioner Diekmann moved, seconded by Commissioner Scanlan,
recommending approval of rezoning of Block 10, The Legacy of Apple Valley
North, to Zone 3 (residential), and allow for assisted care facility on said Block 10.
Ayes - 5 Nays 0.
MOTION: Commissioner Diekmann moved, seconded by Commissioner Alwin, recommending
approval of the preliminary plat of Parkside Village, subject to compliance with all
code requirements and the following conditions:
a. Approval of the preliminary plat is subject to the approval of the vacation of
the right- of-way of Fortino Street, the right-of-way of Fontana Trail, and all
existing drainage and utility easements.
b. Drainage and utility easements shall be dedicated in accordance with the
City's subdivision ordinance.
c. A 30' drainage and utility easement shall be dedicated for the relocated 24"
storm sewer line east of the right-of-way line of Fontana Trail in the location
directed by the City Engineer.
d. A minimum 10' drainage and utility easement shall be dedicated adjacent to
Galaxie Avenue and 153rd Street West rights-of-way.
e. A cash-in-lieu of land parkland dedication shall be required in accordance
with the City's dedication formula in the subdivision ordinance.
Stormwater pond dedication has been previously satisfied.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 5 of 11
Ayes - 5 - Nays - O.
MOTION: Commissioner Diekmann moved, seconded by Commissioner Scanlan,
recommending approval of the site plan and give building permit authorization to
construct the 126-unit Galante building without encroachment into the Galaxie
Avenue utility and drainage easement and the 196-unit Gabella building in the
Parkside Village subject to compliance with all City code requirements and
construction standards and the following conditions:
a. Approval of the building permit is subject to approval and publication of
zoning amendments to Planned Development No. 739, Article 31 of the City
Code, and execution of a Planned Development Agreement.
b. Approval of the building permit is subject to the approval of the vacation of
the right- of-way of Fortino Street, the right-of-way of Fontana Trail, and all
existing drainage and utility easements.
c. Approval of the building permit is subject to approval of the final plat and
development agreement of Parkside Village.
d. A landscape bid list that confirms that the landscape plantings meet or exceed
2-1/2% of the value of the construction of the building based on Means
Construction Data shall be submitted at the time of building permit
application.
e. The landscape plan shall be revised to replace the honeylocust trees along
Galaxie Avenue with a tree that is better suited to the limited size of the
planting area to be reviewed and approved by the Natural Resources
Management Coordinator.
f. A lighting plan shall be submitted at time of building permit application.
g. A hauling and staging plan shall be submitted at time of Natural Resources
Management Permit (NRMP) application.
Ayes - 5 - Nays — O.
B. Kwik Trip Store Reconstruction — Consideration of a proposed replat, amendments to
conditional use permits, variance, and site plan/building permit authorization to allow for the
reconstruction of an existing gas/convenience store and car wash operation. (PC12-30-SCB)
LOCATION: 7510 — 145th Street West
PETITIONER: Kwik Trip, Inc. and Convenience Store Investments.
City Planner Tom Lovelace stated the applicant requested approval of a replat of two existing lots
into one (1) lot, amendments to existing motor fuel sales, car wash operations and outdoor display
conditional use permits; and site plan/building permit authorization to allow for construction of a
5,764 sq. ft. convenience store, 1,879 car wash bay, 4,800 sq. ft. fuel canopy, and 23 surface
parking spaces. The site is located at the northwest corner of 145th Street West and Cedar Avenue.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 6 of 11
The site includes the current multi-tenant retail building of the existing Kwik Trip convenience
store and Big Apple Bagel restaurant, a 970 sq. ft. car wash bay, a 3,700 sq. ft. fuel canopy, and 61
surface parking spaces.
The proposed plat identifies all the required perimeter drainage and utility easements as well
restricted access easement along Cedar Avenue. No outstanding issues have been identified. The
existing motor fuel sales, car wash, and outdoor display sales conditional use permits would need to
be amended that would address their proposed operations. Building signage had been identified on
the elevations but no formal sign application had been submitted. All building signage would need
to be in conformance with the City's sign regulations. A sidewalk would be installed along the
north side of 145th Street West.
He stated the applicant is requesting a variance for two 35-foot wide driveways off of 145th Street
West to access the site. Maximum driveway width allowed by City code is 30 feet. An existing
driveway off of Glenda Drive would be removed with the new construction, and no access would be
allowed from Cedar Avenue.
He identified the outdoor display locations and reviewed building and fuel canopy elevation plans.
He said revisions would need to be made to the grading, utility, and landscape plans per staff
comments as outlined in the report.
Commissioner Diekmann asked for clarification in the report as to the infiltration basins versus the
filtration basins.
Mr. Lovelace stated the report currently reflects infiltration basins and modification to the plans had
not been made yet to show the filtration basins but would be submitted with the building permit.
Commissioner Scanlan commented on the LED lighting and thought the brightness of the lighting
could be controlled since the new store would be so close to the residential area and possibly a 24-
hour operation. He asked if this had been discussed with the developer.
Mr. Lovelace answered that lighting had not been discussed yet but that it would be open ended and
if the City receives complaints. The City would have the ability to contact the store and request for
them to racket the lighting down a little. In the past the City has developed good relationships with
the property owners in the business district and has worked with them to tone down the lighting if
needed.
Commissioner Scanlan asked if there was a reason the LP would be in the front of the store versus
the side where the ice chest storage would be. He expressed the concern for the outside appearance
of the LP tanks and how they start to look after a period of time.
Wade Dumont, Kwik Trip Inc., LaCrosse, Wisconsin, stated the ice chest would be for staff
availability. He commented that they use non-corrosive propane tanks with a stainless steel type of
finish which do not rust. Regarding the LED lighting, he stated they have not had complaints at
their other stores and they would work with City staff if it becomes an issue. He addressed the
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 7 of 11
outdoor display of merchandise at the fuel station end caps and stated they prefer to keep their
stores as similar as possible so their customers would be more familiar with their product.
Commissioner Alwin was in support of the wider driveways for the trucks to enter and exit but not
in favor of products to be stored on the end caps of the pump displays.
Commissioner Scanlan concurred with the increase of driveway widths and also preferred not to see
outdoor merchandising.
Commissioner Diekmann questioned if the outdoor vending machines was something not allowed
in this area alone or was it not allowed in any areas of Apple Valley.
Mr. Lovelace answered it is not allowed in the retail business zoning area unless with a conditional
use permit and could be allowed in a planned development but generally outdoor vending machines
are not allowed.
MOTION: Commissioner Alwin moved, seconded by Commissioner Diekrnann, recommending
approval of the replat of Lots 1 and 2, BOR-NEL into Lot 1, Block 1, KWIK TRIP
406. Ayes - 5 - Nays - O.
MOTION: Commissioner Alwin moved, seconded by Commissioner Diekmann, recommending
approval of the following amendments to the approved conditional use permit for
motor fuel sales, dated May 24, 1983:
a. The Conditional Use Permit shall apply to property legally described as Lot
1. Block 1, KWIK TRIP 406.
b. Such operations shall be in conformance with the site plan dated July 18,
2012.
c. No more than thirteen (13) pump islands shall be allowed.
d. Canopy lighting above the gas pumps shall be either completely recessed or
provided with a lens bezel to restrict illumination to the area directly beneath
the canopy.
e. The red LED lighting on the face of the canopy shall be illuminated in a
manner that will not have an adverse impact on neighboring properties or
vehicles traveling along the roadways adjacent to the site.
f. Any fuel dispensing public address system shall not be used for advertising
or background music purposes.
MOTION: Commissioner Alwin moved, seconded by Commissioner Diekrnann, recommending
approval of the following amendments to Conditional Use Permit No. 1993-168,
dated July 22, 1993 for car wash operation in conjunction with a convenience
store/motor fuel operation:
a. The Conditional Use Permit shall apply to property legally described as Lot
1. Block 1, KWIK TRIP 406.
Ayes - 5 - Nays - 0.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 8 of 11
b. Such operations shall be in conformance with the site plan dated July 18,
2012.
c. Such operations shall be in conformance with the elevation plans dated July
10, 2012.
Ayes - 5 - Nays - 0.
MOTION: Commissioner Alwin moved, seconded by Commissioner Diekmann, recommending
approval of the following amendments to Conditional Use Permit No. 1993-238,
dated October 14, 1993 for outdoor display and sales in conjunction with a
convenience store/motor fuel operation:
a. The Conditional Use Permit shall apply to property legally described as Lot
1. Block 1, KWIK TRIP 406.
b. Such operations shall be in conformance with the site plan dated July 18,
2012.
c. Display of goods at the end of the pump islands shall not be allowed.
d. Outdoor display of vending machines shall not be allowed.
Ayes -5 - Nays - 0.
MOTION: Commissioner Alwin moved, seconded by Commissioner Diekmann, recommending
approval of the site plan/building permit authorization to allow for construction of a
7,643commercial building that will include a 5,764 convenience store and 1,879 sq.
ft. attached single stall car wash facility and 4,800 sq. ft. fuel canopy on Lot 1, Block
1, KWIK TRIP 406, subject to the following conditions:
a. A variance shall be granted to allow for a 5-foot increase in the width of the
driveways along 145th Street West from the maximum 30 feet allowed by
City Code.
b. Issuance of a building permit shall be contingent upon the approval and
recording of the KWIK TRIP 406 final plat.
c. Construction shall occur in conformance with the site plan dated July 18,
2012.
d. A sidewalk shall be constructed along the north side of 145 Street West, from
Cedar Avenue to Glenda Drive.
e. Construction shall occur in conformance with the elevation plan dated July
10, 2012.
f. Construction shall occur in conformance with the landscape plan dated July
18, 2012, subject to the replacement of the Colorado blue spruce trees with
Black Hills spruce.
g. The site grades shall meet a minimum elevation of 957 feet and the building
elevation shall have a minimum elevation of 957.5 feet.
h. Overland flow from the east side of the building shall be directed to Filtration
Basin #1.
1. Catch Basin #3 should be converted to a manhole.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 9 of 1 - 1
7. OTHER BUSINESS
j. Site grading shall ensure flow from the east side of the building to Filtration
Basin #1 is maximized.
k. The filtration basins shall be designed and constructed in accordance with
City standards and shall have sufficient capacity for 0.5" of volume over the
entire site in a 48 hour period.
1. Any work within the public right-of-way shall require a right-of-way permit
and shall be coordinated with engineering staff.
m. Construction shall occur in conformance with the utility plan dated July 18,
2012; subject to necessary revisions as identified by the City Engineer in his
memo dated September 24, 2012.
n. All applicable City ordinances shall be adhered to.
Ayes - 5 Nays — 0.
A. Chick-fil-A Restaurant Sketch Plan - Review of a proposed 4,585 sq. ft. Class II
restaurant with a drive-thru.
LOCATION: Southeast corner of 153rd Street West and Cedar Avenue
PETITIONER: Chick-fil-A, Inc. and H.R. Green
City Planner Tom Lovelace stated the proposed site is part of the replat of the existing Cub Foods
property that consists of the replatting of the 11.63-acre lot into a one 9.63-acre lot and two one-acre
lots. The proposed restaurant would be located on the one-acre lot located in the northwest corner
of the plat. Construction of the proposed restaurant would be contingent on the approval of CUB
FOODS ADDITION final plat.
Review of a concept plan for a proposed development project would consist of the construction of a
4,585 sq. ft. Chick-fil-A restaurant, 38-space parking lot, and drive-thru lane on .988 acres. The site
is located in the southeast corner of 153rd Street West and Cedar Avenue.
A Class II restaurant is a conditional use within the "RB" (Retail Business) zoning district and
cannot be located any closer than 1,000 feet from a residential or institutional use. A variance
would need to be approved along with a conditional use permit for this restaurant to move forward.
Jason Hill, Chick-fil-A, provided background information of their company and design and said
they would be looking at a 2013 spring construction. He stated they typically use two menu boards
but they are of a smaller design.
Discussion followed regarding the dual drive-up lanes and double menu board and what was
allowed in other locations in the City.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 10 of 11
Commissioner Diekmann said he had no problem with the dual boards and stated it should be
revisited again for further discussion. He would like to see the canopy wrap around the building
more so it does not look so front-sided and back-sided.
Commissioner Scanlan stated he would be open for discussion on the dual menu boards as well. He
said he preferred to not see a variance needed for setback and questioned where deliveries to the site
would be made and if the trucks would block the aisle for the drive-up.
Mr. Hill answered they take delivery of their products at off peak hours.
Commissioner Wasserman inquired if there was a landscape plan yet and if it was the responsibility
of the City with Cedar Avenue or is it part of the restaurant responsibility.
Mr. Lovelace stated it would be part of the restaurant responsibility.
Vice-Chair Burke commented that he would like to see the building line up with the Walgreens
along the corridor and not see one building far back from the street and felt that the sound barrier
wall across Cedar would make it so the applicant could get by without the 1000 foot requirement.
He stated he was in favor of the project.
Commissioner Wasserman inquired if there would be a public hearing associated with the project.
Mr. Lovelace answered that there would be a public hearing for a Class II restaurant.
Commissioner Scanlan commented he would be agreeable to looking at the variance design based
on the clarification Mr. Lovelace provided. He inquired if there was any other design consideration
to move the restaurant further into the parking lot to bring the trash container closer to the store so
the employees would not be walking across the lane of traffic from the drive-thru.
Mr. Hill stated they have changed the design footprint in the past where they had extended the trash
enclosure to the back of the store which extended the length of the building. They do not have that
option with this site due to the location of the property line.
B. Review of upcoming schedule and other updates.
Community Development Director Bruce Nordquist stated that October was "Community Planning
Month" and he provided a proclamation from Governor Mark Dayton.
He informed the Commission that on October 23, 2012, from 5:30 to 7:30 p.m. there would be a
Bus Rapid Transit Oriented Development Open House to be held at the Apple Valley Municipal
Center in the Council Chambers.
He also informed the Commission that the event previously planned for October 23, 2012, at 3:00
p.m., a Kick-Off event of the Apple Valley Business Campus, has been postponed to a later date
and staff would notify the Commission when it is rescheduled.
CITY OF APPLE VALLEY
Dakota County, Minnesota
Planning Commission Minutes
October 17, 2012
Page 11 of 11
He stated that the next Planning Commission meeting would take place Wednesday, November 7,
2012, at 7:00 p.m.
8. ADJOURNMENT
Hearing no further comments from the Planning Staff or Planning Commission, Vice-Chair Burke
asked for a motion to adjourn.
MOTION: Commissioner Diekmann moved, seconded by Commissioner Alwin to adjourn the
meeting at 8:49 p.m. Ayes - 5 - Nays - 0.
Respec ully Submitted,
Joai urphy, Planning Depa
ment
sistant
Approved by the Apple Valley Planning Commission on
Agenda Item:
Number: PC12-39-I
Staif Reviewer: Thomas Lovelace
: ITY OF APPLE VALLEY PROJECT SUIVIMAR
MENARDS - HANSON PROPERTY INTERIM USE PERMIT
Case
Menard's Inc.
Applicant:
Application Date: October 8, 2012
Meeting Date: November 7, 2012
Petition for:
Interim Use Permit to allow for the crushing and temporary stockpiling of concrete resulting from the
demolition of three buildings located at 6055 150th Street West. The applicant is requesting approval to
crush the concrete from the Hanson Pipe and Products manufacturing plant, office, and shop buildings and
store the crushed concrete onsite for the purpose of using the material as fill and base for a proposed new
store construction project located at the southeast corner of Flagstaff Avenue and 150 Street West.
Summary of
Issues: Approximately 25,000 tons of concrete from the demolished buildings will be crushed on the site and they
expect to crush about 2,000 tons per day. The applicant should provide a crushing timeline. Also, any import
of material for crushing or stockpiling should be strictly prohibited.
Other debris piles from the building demolition are currently on the site, which should be removed as quickly
as possible and the office basement should be filled in.
The applicant is requesting that the stockpile be allowed to have a maximum height of 25 feet. Staff would
like the applicant to consider lowering the stockpile to a height that would soften the visual impact from
adjacent properties and roadways. This would likely require a larger stockpile area.
Staff is recommending that any truck hauling in and out of the site be limited to the Johnny Cake Ridge Road
driveway.
Several storm water drains are located in close proximity to the stockpile area including two that will be
located directly under it. Some of these drains are connected to a 42-inch storm line that receives storm water
runoff from Johnny Cake Ridge Road and transports it to the ponding area located in the northwest corner of
the project site. To ensure that the drains do not plug up from crushed material or other debris, inlet protection
devices should be installed in all drains within a minimum of 100 feet of the stockpile.
Staff is recommending that they be allowed to operate for one year and shall be limited to the hours of 8:00
a.m. to 4:00 p.m., Monday through Friday only. No weekend work should be allowed. The permitted hours
and days of operation should be applicable to all activities related to the crushing and stockpiling operations
including but not limited truck hauling to and from the site.
In order to control dust generated by the proposed operation, staff is recommending that crushing and hauling
should not occur when wind velocity exceeds thirty (30) miles per hour and watering to control dust onsite
shall occur as needed and whenever directed by the Apple Valley Building Official or Zoning Administrator.
Noise created by the machinery used to crush the concrete shall be operated in conformance with the minimum
standards as adopted and enforced by the Minnesota Pollution Control Agency.
Issuance of interim use permit by the City shall be contingent upon the applicant providing verification from
any and all applicable agencies as to whether additional approval or permitting of this interim use is necessary.
And if any additional approvals or permits are required, they shall be obtained prior to commencement of any
crushing activity at the site.
Recommended
Action: Open the public hearing, receive comments and close the public hearing. It is the policy of the
Planning Commission not to act on a public hearing item the night of the public hearing.
Property Location:
Legal Description:
Comprehensive Plan
Designation
Zoning
Classification
Existing Platting
Current Land Use
Size:
Topography:
Existing Vegetation
Other Significant
Natural Features
Adjacent
Properties/Land
Uses
MENARDS - HANSON PROPERTY INTERIM USE PERMIT
PROJECT REVIEW
6055 150 Street West
The South 50.68 acres of the East IA of the Southwest '4 of Section 26
"IND" (Industrial)
"I-2" (General Industrial)
Unplatted
Vacant concrete pipe manufacturing facility and storage yard
50.68 acres
Flat
East lot line has a berm topped with coniferous trees
Pond located in the northwest corner of the site
NORTH
SOUTH
EAST
WEST
Vacant
Existing Conditions
Comprehensive Plan "IND" (Industrial)
Zoning/Land Use
Fischer Sand and Aggregate Mining Operation
Comprehensive Plan
Zoning/Land Use
Venstar Industrial Park and Uponor, Inc.
Comprehensive Plan
Zoning/Land Use
Magellan Petroleum Tank Farm
Comprehensive Plan
Zoning/Land Use
"IND" (Industrial)
Development Project Review
"I-2" (General Industrial)
"MBC" (Mixed Business Campus
R-1 Single Family 40,000
"I-1" (Limited Industrial)
"IND" (Industrial)
"I-2" (General Industrial)
Comprehensive Plan: The project site is guided "IND" (Industrial), which is a designation that allows offices,
assembly, warehouse, manufacturing and other similar activities within an enclosed building to limit the amount of
dust, noise, odor, and other adverse impacts. This proposed use will be done outside and will likely generate some
noise and dust.
Zoning: The site is zoned "I-2" (General Industrial), which is designed to serve smaller "quasi-industrial" uses, such
as machine shops, mill working establishments, and the like. Permitted uses within this district include the
manufacturing, compounding, assembly, packaging, treatment, or storage of products and materials that include
cement, concrete, stonecutting, and brick. Conditional uses include open storage of materials and goods, concrete
ready mix plants and asphalt plants.
The proposed crushing and stockpiling of demolition concrete has some similar characteristics to some of the
permitted and conditional uses within the "I-2" zoning district, there are enough operational issues that would make
undesirable long term. The applicant is therefore, requesting an interim use permit to allow for the onsite recycling of
the demolition material that will be hauled off the site and used for base and fill material for their proposed home
improvement store located at the southeast corner of 150 Street West and Flagstaff Avenue.
An interim use is defined as a temporary use of the property until a particular date, until the occurrence of a particular
event or until zoning regulations no longer permit it. By using this process the City will have the ability to put
conditions on the proposed project that will include a time certain for the cessation of operations.
Interim Use Permit Request: The applicant is requesting approval of an interim use permit to allow for the crushing
and open storage of concrete from three demolished buildings that will be recycled and used as base and ill material
for a Menard's store. The operation is proposed to occur on a portion of a 50.68-acre site located in the northwest
corner of CSAH 42 and Johnny Cake Ridge Road. The site is part of a former 80-acre concrete pipe manufacturing
plant and pipe storage yard, which has ceased operations.
The applicant has indicated that there will be approximately 25,000 tons of concrete from the demolished buildings
that will be crushed on the site and they will be able to crush about 2,000 tons per day. The applicant has not
indicated how long it will take to complete the crushing of the material. Also, any import of material for crushing or
stockpiling should be strictly prohibited.
Other debris piles from the building demolition are currently on the site. They include among other things structural
steel and metal window and door frames. Those piles should be removed as quickly as possible. The office had a
basement, which should be filled in.
They will stockpile the crushed material in a 200 ft. x 400 ft. area that will be located approximately 365 feet from the
east property line, 100-114 feet from the north property line, 540 feet from the west property line and 1,190 feet from
the south property line. The stockpile area will also be located approximately 1,500 feet from the nearest residential
property, 450 feet from the closet commercial/industrial property, and 440-450 feet from 147 Street West, which is
expected to open to traffic sometime this November.
The size of the stockpile area is not consistent with the area called out in the applicant's submittal letter, which
indicates a 300 ft. x 400 ft. area. The applicant should delineate the correct size of the stockpile area on the site plan.
The applicant is requesting that the stockpile be allowed to have a maximum height of 25 feet. There is currently an 8-
10-foot high berm with a row of conifers that nearly runs the length of the east property line, which could provide
some screening of the operation from vehicles and businesses along Johnny Cake Ridge Road. No screening is
proposed along the north, south, or east sides of the property. Staff would like the applicant to consider lowering the
stockpile to a height that would soften the visual impact from adjacent properties and roadways. This would likely
require a larger stockpile area.
Several storm water drains are located in close proximity to the stockpile area including two that will be located
directly under it. Some of these drains are connected to a 42-inch storm line that receives storm water runoff from
Johnny Cake Ridge Road and transports it to the ponding area located in the northwest comer of the project site. To
ensure that the drains do not plug up from crushed material or other debris, inlet protection devices should be installed
in all drains within a minimum of 100 feet of the stockpile.
Two driveway accesses exist from CSAH 42 and one from Johnny Cake Ridge Road. CSAH 42 is a principal arterial
road that has a traffic volume of 27,500 vehicle trips per day on the section of this roadway between Galaxie Avenue
and Pilot Knob Road. Johnny Cake Ridge Road is classified as a major collector and has a volume of 7,900 trips per
day on the section between 140 Street West and CSAH 42. The Johnny Cake Ride Road driveway also aligns itself
with a driveway on the east side of the street that provides access to the Holiday convenience store. Because of the
lower volume and driveway alignment, staff is recommending that any truck hauling in and out of the site be limited
to the Johnny Cake Ridge Road driveway.
The applicant is requesting they be allowed to run their crushing operation from 8:00 a.m. to 4:00 p.m. Staff has no
issue with the hours of operations, but would recommend that they be allowed to operate Monday through Friday
only. No weekend work should be allowed. The permitted hours and days of operation should be applicable to all
activities related to the crushing and stockpiling operations including but not limited truck hauling to and from the site.
Finally, staff would propose that this interim use permit be valid for one year.
2
This proposed operation will likely generate dust, which was the case will the building demolition that occurred over
the past several weeks. Therefore, crushing and hauling should not occur when wind velocity exceeds thirty (30)
miles per hour and watering to control dust onsite shall occur as needed and whenever directed by the Apple Valley
Building Official or Zoning Administrator.
The machinery used to crush the concrete will likely create noise. Any noise shall be in compliance with the City' s
zoning code, which states "That any use producing noise shall be in conformance with the minimum standards as
adopted and enforced by the Minnesota Pollution Control Agency".
This operation may require additional approvals/permits from other governmental agencies such as Dakota County or
the Minnesota Pollution Control Agency. Therefore, issuance of interim use permit by the City shall be contingent
upon the applicant providing documentation from any and all applicable agencies verifying if additional approval or
permitting of this interim use is necessary. And if any additional permits are required, they shall be obtained prior to
commencement of any crushing activity at the site.
Public Hearing Comments: Open the public hearing, receive comments and close the public hearing. It is the policy
of the Planning Commission not to act on a public hearing item the night of the public hearing. Staff has received one
e-mail comment from an adjacent property owner that has been included with this report.
Attachments:
Letter from Applicant
Public Hearing Response E-mail
Aerial Map
3
Location Map
Comprehensive Plan
Zoning Map
Site Plan
October 8, 2012
Tom Lovelace
City Planner
City of Apple Valley, MN
7100 W. 147th Street
Apple Valley, MN 55124
Dear Tom,
Menard, Inc. is working through the process of replacing the existing Apple
Valley Menards store on the corner of Florence Trail and Flagstaff Ave with a new
prototypical store. The new store will be located southeast from the existing store on the
corner of Cty. Rd. 42 and Flagstaff Ave. Menard, Inc. also purchased the Hanson
concrete plant on the north side of Cty. Rd. 42 as part of the store redevelopment project.
The concrete plant currently has three vacant block buildings on the property. These
buildings are of no value to Menards and are being demolished as part of the
redevelopment.
Through a Interim Use Pe it Menard, Inc. would like to request the right to
demolish these three buildings and crush the concrete onsite. The crushed material will be
used as fill and base for the new store construction project. The attached exhibit depicts
the stockpile location on the northern portion of the property 365 feet from the Jonny
Cake Road Right-of-Way. This stockpile will be limited to the 300x400 foot area and no
more than 25' high. Crushing onsite will allow Menards to recycle material that would
otherwise need to be hauled offsite, dumped and stored for unknown amounts of time at
an aggregate waste pit. Menards has crushed buildings onsite through this exact process
on other development sites and fbund that it works very well in recycling existing
materials and keeping construction costs lower. Please review the attached materials and
do not hesitate to contact me if there are any questions. The Application Fee and Escrow
will be fo arded on Friday, October 12 2012.
RE: Menards Interim Use Pe it Application
Apple Valley, Minnesota
Sincerely,
Menard, Inc.
Tom O'Neil
Real Estate Acquisitions
Menard, Inc
5101 Menard Dr.
Eau Claire, WI 54703
715-876-2810
5101 MENARD DRIVE
tone
EAU CLAIRE,
54703-9625
Via Overnight Mail
PHONE (715) 876-5911 FAX (715) 87 868
Lovelace, Tom
From:
Sent:
To:
Subject:
From: Hughes, Dan [mailto:Dan.Hu hes u•onor.com]
Sent: Friday, October 26, 2012 3:02 PM
To: Murphy, Joan
Subject: Public hearing regarding 6055 150th Street West
Murphy, Joan
Friday, October 26, 2012 3:48 PM
Lovelace, Tom
FW: Public hearing regarding 6055 150th Street West
0
I am submitting the following comments for consideration at the upcoming Planning Commission meeting
regarding the subject property:
While the demolition of the former Hanson facility is a necessary element of redeveloping that property, I
do want to comment on the need to improve the monitoring and control of dust from the concrete disposal
process. For the last several months of the project there has been an unacceptable amount of airborne
concrete and soil materials that have impacted the neighboring properties. Only after placing a call to the
ordinance enforcement authorities were any steps taken by the demolition contractor to water down the
debris to control dust. On several extremely windy days the amount of dust in the air was quite shocking
and a source of many complaints from our employees. Those complaints addressed both air quality and
the deposits on their vehicles. In addition, our maintenance personnel have seen a big impact to our HVAC
intake filters and the front windows and facade of our building are now extremely dirty. Although our
windows are routinely cleaned twice per year we are currently engaging a contractor at a cost in excess of
$5,000 to completely wash the face of the building and clean the windows and window sills, which all have
an excessive accumulation of dirt. For these reasons I would like to suggest the following:
1. The City of Apple Valley should closely monitor any ongoing crushing and stockpiling of concrete
materials, imposing requirements on the contractor/owner as appropriate to control dust from the
handling and crushing processes, particularly during dry and windy conditions.
2. Prohibit the contractor/owner from bringing any new materials on the site to be crushed or
otherwise processed. The temporary work should be limited to completing the clean-up of
materials now on site.
I have talked with another neighboring property owner who experienced the same problems with the
demolition activity to date and hope that my recommendations can be considered to the benefit of
Uponor, its employees and other neighboring properties.
Thank you for your consideration of this input.
Dan Hughes, LEED GA
Real Estate and Development Manager
Uponor
5925 148th Street West, Apple Valley, MN 55124
Tel: 952-997-5344 Mobile: 612-306-5377 Fax: 952-891-2008
email: dan.hughes@uponor.com Web: www.uponor-usa.com
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ALTA/ACSM LAND TITLE SURVEY PROPERTY ADDRESS: #6055 - 150TH ST. WEST, APPLE VALLEY, MN
SCHEDULE B-2 ITEMS:
-for-
"Menard, Inc" &
"CHICAGO TITLE INSURANCE COMPANY",
riRs,Vi'l,TcVGET,','DLPI5535
BENCHMARK:
MNDOT STATION 'DAKOTA', GSID STATION #50804. ELEV. = 952.305 (NAVD 1988 DATUM).
1 S 8 F10 3 V,Z=J V R A VW. EW A L.K, TRAIL, DRAINAGE AND UTILITY AND TEMPORARY CONSTRUCTION EASEMENT AS PER DOC. NO. 2820794
15077 T. W.
LEG, DESCRIPTION:
ADVANCED ENGINEERING CONCEPTS
Eric R. Vickaryous, P.L.S.#44125
635 FAIRFAX STREET
ALTOONA, WI 54720
(715) 514-4116
www.rls-aec.com
S73 DEGREES 30 MINUTES 00 SECONDS WEST A DISTAN
I hereby certify to Menard, Inc., a Wisconsin corporation, and Chicago Title Insurance Company, to their heirs, successors and
assigns, that I have anrveyed the property legally described hereon; that this survey is a true, correct and accurate drawing and
representation of said property and the boundaries thereof; that this map or plat and the surv, on which it is based were made in
accordance with "Minimum Standard Detail Requirements ALTA/ACSM Land Title Surveys," as jointly established and
adopted by ALTA and ACSM in 2005, and includes Items 1, 2, 3 (Se,e #6 under general notes), 4, 5, 8„10 and 11(a) of Table A
thereof, and meets the Accurany Standards (as adopted by ALTA and ACSM and in effect on the date of this certification), and
that in locating or identifying recorded easements or other recorded documents I have relied upon the Commitmant for Title
Insurance issued by Chicago Title Msurance Company, dated of June 19, 2012 and bearing file number 230772.
LEGEND
- AREA DRAIN
- STORMSEWER MANHOLE
, SANITARY SEWER MANHOLE
- CATCHBASIN
- CABLE PEDESTAL
- TELEPHONE PEDESTAL
- GAS METER
- ELECTRICAL MANHOLE
- L T I C ° IR E A N S F 0 R M E y
- VENT PIPE
- WATER GATEVALVE
1:1- HYDRANT
- MONITORING WELL
C.A, STORM/SANITARY STRUCTURE NUMBER
it- CONIFEROUS TREE
It - DECIDUOUS TREE
- CONCRETE AREA
- LIGHT POLE
- GAS .LVE
- FOUND 1 3/4 0.D. IRON PIPE
• FOUND IRON PIPE WITH CAP (LS44125)
0 - SET IRON PIPE WTH CAP (LS44125)
City of Apple
I
Valley
Chair and Planning Commission Members
TO:
FROM: Kathy Bodmer, Associate City Planner
MEETING
DATE: November 8, 2012
EMO
Community Development
SUBJECT: Resolution Finding that the Amendment to the "Master Development District" and "Master
Development Program" for the Parkside Village Project "TIF Plan" is consistent with the
Apple Valley 2030 Comprehensive Plan
The Parkside Village development is an approximately 8-acre area located on the northeast corner of
Galaxie Avenue and 153 Street West. The Planning Commission reviewed and recommended
approval of the development, which included two multiple family buildings with a total of 322 units, at
its October 17, 2012, meeting. In connection with the development of the property, the property
owner, IMH LLC, has requested tax increment financing (TIF) to apply toward eligible project costs.
Without this assistance, the project could not proceed. The Planning Commission is asked to review
the attached resolution finding that the Amendment to the "Master Development District" and "Master
Development Program" for the Parkside Village Project "TIF Plan" is consistent with the Apple Valley
2030 Comprehensive Plan.
One of the requirements for the use of TIF assistance is that a specific "TIF Plan" must be prepared
which outlines the eligible site development/redevelopment costs which will be paid for with the
pooled TIF funds. State statute requires that the activities for which TIF is used be consistent with a
City's Comprehensive Plan and that the local Planning Commission must make such an administrative
finding of consistency. In this case, implementation of the project will provide for development within
the Central Village new housing choices and including affordable housing. Within Chapter 4 of the
2030 Comprehensive Plan, the land use chapter, downtown development of this type is supported.
Further, the City's Comprehensive Plan has goals of providing a variety of housing styles in a range of
price points to provide "life-cycle" housing opportunities within the community.
Eligible TIF activities that can be funded include the following:
(a) Acquisition of land;
(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.
Attached is a copy of the proposed amendment to the Master Development Program and District which
includes establishing housing TIF District 15 along with its Tax Increment Financing Plan.
Recommended Actions:
Staff is recommending that the Planning Commission adopt the attached resolution finding that the
amendment to the "Master Development District" and "Master Development Program" for the
Parkside Village Project "TIF Plan" is consistent with the Apple Valley Comprehensive Plan.
WHEREAS, the City of Apple Valley, Minnesota. (the "City"), has prepared an
amendment to the Master Development Program for the Apple Valley Master Development
District, for the establishment of Tax Increment Financing District No. 15 (the "Program
Amendment") and a Tax Increment Financing Plan (the "TIF Plan ") for Tax Increment Financing
District No. 15 therein and has submitted the Program Amendment and the TIF Plan to the City
Planning Commission pursuant to Minnesota Statutes, Section 469.126 and Section 469.175,
Subdivision j, and
ATTEST:
CITY OF APPLE VALLEY
PLANNING COMMISSION RESOLUTION NO. 2012 -
RESOLUTION CONCERNING AMENDMENT TO THE MASTER
DEVELOPMENT PROGRAM FOR APPLE VALLEY'S MASTER
DEVELOPMENT DISTRICT AND TIF PLAN'S CONFORMANCE WITH
THE APPLE VALLEY COMPREHENSIVE PLAN
Pamela J. Gackstetter, City Clerk
WHEREAS, the Planning Commission has reviewed said Program Amendment and TIF
Plan to determine their conformity to the City's Comprehensive Plan for the development or
redevelopment of the City as a whole; and
WHEREAS, the Planning Commission is in agreement with the Program Amendment
and TIF Plan.
ADOPTED this 7th day of November, 2012.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission that the
proposed Program Amendment and TIF Plan conform to the City's Comprehensive Plan for the
development or redevelopment of the City as a whole and the Planning Commission
recommends the Program Amendment and TIF Plan to the City Council of the City of Apple
Valley for its approval.
Thomas Melander, Chair
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This document was drafted by:
4996914v2
Amendments Relating to the Apple Valley Master
Master Development District
of the
Apple Valley Economic Development Authority, Minnesota
Including Amendment of its Master Development Program
and
Establishment of Tax Increment Financing District No. 15 and
Approval of its Tax Increment Financing Plan
With Financial Information provided by:
November 20, 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 469.1082, and all powers
and statutes referenced therein, including Minnesota Statutes, Sections 469.001 through 469.047,
and 469.124 through 469.133, as amended.
"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.
4996914v2
1
"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 Sections 1.03, 2.05, 2.06 and 2.14 of the Tax Increment Financing Plan for Tax
Increment Financing District No. 15, 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 469.1794, 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. 15, 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 469.133, as amended, 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
14 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.
49969 14v2
On May 18, 1990, the following actions were taken by the City:
( 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
( 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 include the estimated and additional public improvement and
development goals, activities and costs described in Section II. 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.
4996914v2
SECTION II
THE TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 15
Section 2.01 Parcel(s) to be Included in Tax Increment Financing District No. 15. Tax
Increment Financing District No. 15 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 2.02 Property to be Acquired. The City reserves the right to acquire any
property within Tax Increment Financing District No. 15.
Section 2.03 Statement of Objectives; Development Activity in the Master
Development District for Which Contracts Have Been Signed, Tax Increment Financing District
No. 15 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 a 322 unit
multifamily housing facility to be developed within Tax Increment Financing District No. 15 (the
"Project") designed for persons or families of low and moderate income. No contract has been
signed prior to the establishment of Tax Increment Financing District No. 15.
Section 2.04 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 2.05 Estimated Public Costs. The estimated total Public Costs to be paid from
Tax Increments is described in Exhibit C.
Section 2.06 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 to reimburse the
developer for a portion of the cost of the development property to be acquired for the Project and
on a pay-as-you-go basis to reimburse the developer for costs of site improvements related to the
Project. The City, however, reserves the right to issue bonds estimated not to exceed $6,500,000
to finance said project costs.
Section 2.07 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 2.08 Estimated Recent Net Tax Capacity. The estimated net tax capacity of all
taxable property in Tax Increment Financing District No. 15 as most recently certified by the
Commissioner of Revenue of the State of Minnesota, being the certification made in 2012 with
4996914v2
respect to the net tax capacity of such property as of January 2, 2011, for taxes payable in 2012 is
estimated to be $25,393.
Section 2.09 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. 15 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. 15 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. 15 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:
49969 1 4v2
(
(2)
(
abatements;
change in tax exempt status of property;
reduction or enlargement of the geographic boundaries of the district;
change due to stipulations, adjustments, negotiated or court-ordered
(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. 15 the City estimates the net tax capacity of taxable property in Tax Increment
Financing District No. 15 will be approximately $1,489,607.
The captured net tax capacity upon completion of development is expected to be
approximately $1,464,214. The Tax Increments may be captured for up to twenty-five (25)
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. 15 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 2.10 Type of Tax Increment Financing District. Pursuant to Section 469.174,
Subdivision 11 of the Act, the City has determined that Tax Increment Financing District No. 15
qualifies as a "housing district" because:
"Housing district" means a type of tax increment financing district which consists
of a project, or a portion of a project, intended for occupancy, in part, by persons or
families of low and moderate income, as defined in Chapter 462A, Title II of the National
Housing Act of 1934, the National Housing Act of 1959, the United States Housing Act
of 1937, as amended, Title V of the Housing Act of 1949, as amended, any other similar
present or future federal, state, or municipal legislation, or the regulations promulgated
under any of these acts. A district does not qualify as a housing district under this
subdivision if more than 20 percent of the square footage of buildings that receive
assistance from tax increments (including interest reduction, land transfers at less than the
City's cost of acquisition, utility service or connections, roads, parking facilities, or other
subsidies) consists of commercial, retail, or other nonresidential uses. Housing project
means a project, or portion of a project, that meets all the qualifications of a housing
district under this subdivision, whether or not actually established as a housing district.
The City will cause the Developer to comply with the income restrictions pursuant to
Minnesota Statutes, Section 469.1761. For residential rental property, the property must satisfy
the income requirements for a qualified residential rental project as defined in section 142(d) of
the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax
increment financing district.
Section 2.11 Duration of Tax Increment Financing District No. 15. The Act allows
"housing districts" to remain in existence for a period of 25 years from the receipt of the first Tax
Increments.
Section 2.12 Estimated Impact of Tax Increment Financing. The estimated impact of
Tax Increment Financing District No. 15 on the other taxing jurisdictions is set forth on Exhibit
D. In accordance with Minnesota Statutes, Section 469A75, 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 district will
contain approximately 322 multifamily rental housing units. The overall impact on the general
finances of the City, related to the District, is expected to be minimal. 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. The existing sanitary sewer and
water systems of the City have adequate capacity to serve the development in the District. There
is no impact on the City's ability to issue future debt or on the City's debt limit.
Section 2.13 Cash Flow and Other Financial Analysis. See Exhibit G attached hereto.
Section 2.14 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. 15 for the following activities:
499691 4v2
(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.
6
49969 14v2
( To finance or otherwise pay Public Costs of the Master Development
District.
(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 469.1655, as amended, 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
Minnesota Statutes, Chapter 462C and Minnesota Statutes, Sections 469.152 to 469A655,
as amended, 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 2.15 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. 15 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. 15 by the net tax capacity of the improvements for which the
building permit was issued.
Section 2.16 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. 15,
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 bearing 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 a housing 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
7
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 469A77,
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 2.17 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
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 2.18 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 pursuant to Minnesota Statutes, Section 469.177, 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 2.19 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,
49969 14v2
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
(
(2)
(
Bonds; or
prepay the outstanding Tax Increment Bonds;
discharge the pledge of Tax Increments thereto;
pay into an escrow account dedicated to the payment of the Tax Increment
(4) return the excess to the County Auditor for redistribution to the respective
taxing jurisdictions in proportion to their respective tax capacity rates.
In addition, the City may, subject to the limitations set forth herein (in particular in
Section 2.25), choose to modify the Tax Increment Financing Plan as described in Section II, in
order to finance additional Public Costs of the Master Development District.
Section 2.20 Administration of Tax Increment Financing District No. 15.
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. 15 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 2.21 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. 15 the information
required to be reported under Subdivision 6, paragraph (c), clauses (1), (2), (3), (11), (12), (18),
and (19); 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. 15. The report shall also be filed by the City with the County Auditor. The report
shall:
4996914v2
( Provide for full disclosure of the sources and uses of Tax Increments of
Tax Increment Financing District No. 15;
(2) Permit comparison and reconciliation with the affected City's accounts and
financial reports;
4996914v2
( Permit auditing of the funds expended on behalf of Tax Increment
Financing District No. 15, 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:
( The original net tax capacity of Tax Increment Financing District No. 15
and any district under Section 469.177, Subdivision 1;
(6) The net tax capacity for the reporting period of Tax Increment Financing
District No. 15 and any subdistrict;
(
The captured net tax capacity of Tax Increment Financing District No. 15;
( 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);
(1 1) 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. 15 and the date of the request for
certification regarding any parcel added to the Tax Increment Financing District No 15;
(14) The date the County Auditor first certified the original net tax capacity of
Tax Increment Financing District No. 15 and the date of certification of the original net
tax capacity of any parcel added to Tax Increment Financing District No 15;
(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. 15;
(1 6) The date Tax Increment Financing District No. 15 must be decertified;
10
4996914v2
(17) For the reporting period and prior years of Tax Increment Financing
District No 15, 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;
(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. 15, 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.
11
4996914v2
(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:
(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. 15 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. 15; 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. 15.
Section 2.22 Reasonable Expectations. As required by the Tax Increment Financing
Act, in establishing Tax Increment Financing District No. 15, 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. 15 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. 15 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. 15 and the use of Tax Increments.
12
Section 2.23 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 469.133, as amended. 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
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. 15 must be expended on activities in Tax Increment
Financing District No. 15 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, provided that in the case of a housing district, a
housing project as defined in Minnesota Statutes, Section 469.174, Sub. 11, is deemed to
be an activity in the District, even if the expenditure occurred after five years. 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. 15 except to pay,
or secure payment of, debt service on credit enhanced bonds, provided that in the case of
a housing district, a housing project as defined in Minnesota Statutes, Section 469.174,
Sub. 11, is deemed to be an activity in the District, even if the expenditure occurred after
five years. 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. 15.
( Five Year Limitation on Commitment of Tax Increments. Tax increments
derived from Tax Increment Financing District No. 15 shall be deemed to have satisfied
the 80 percent test set forth in paragraph (2) above only if the five year rule set forth in
Minnesota Statutes, Section 469.1763, Sub. 3, has been satisfied; and beginning with the
sixth year following certification of Tax Increment Financing District No. 15, 80 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 Minnesota Statutes, Section 469.1763, Sub. 5, provided that in the
case of a housing district, a housing project as defined in Minnesota Statutes, Section
469.174, Subd. 11, is deemed to be an activity in the District, even if the expenditure
occurred after five years.
Section 2.24 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.997, 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,
4996914v2
13
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.
4996914v2
Before granting a business subsidy, the City must complete the following:
( Adopt criteria for awarding business subsidies following a public hearing.
(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.
(0 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 $150,000, the City must conduct a public
hearing on the subsidy, after providing at least ten (10) days published notice in the local
newspaper.
Section 2.25 Requirements for Agreements with Developers. Pursuant to Minnesota
Statutes, Section 469.176 Subd. 5, if more than 10% of the acreage of a project is to be acquired
by the City with proceeds from tax increment bonds then, prior to such acquisition, the City must
enter into an agreement for the development of the property. Such agreement must provide
recourse for the City should the development not be completed.
14
Section 2.26 County Road Costs. Pursuant to Minnesota Statutes, Section 469.175,
Subdivision la, the County board may require the City to pay for all or part of the cost of County
road improvements if the proposed development to be assisted by Tax Increments will, in the
judgment of the County, substantially increase the use of County roads requiring construction of
road improvements or other road costs and if the road improvements are not scheduled within the
next five years under a capital improvement plan or within five years under another County plan.
If the County elects to use Tax Increments to improve County roads, it must notify the City
within forty-five days of receipt of this Tax Increment Financing Plan.
Section 2.27 Green Acres. Tax Increment Financing District No. 15 does not contain
any parcel or part of a parcel that qualified under the provisions of Section 273.111 or 273.112
and Chapter 473H for taxes payable in any of the five calendar years before the filing of the
request for certification of the Tax Increment Financing District.
4996914v2
15
. •
Ct
•
VD
6
0
0
VD
0
0
H
cep
"7$
)
Parcel identification number(s) of property, located in the above referenced Tax
Increment Financing District in the City of Apple Valley, Dakota County, Minnesota are
as follows:
4996914v2
EXHIBIT B
Description of Tax Increment Financing District No. 15
CITY OF APPLE VALLEY, MINNESOTA
JLJ
01-75900-07-010
01-75900-02-010
01-75900-02-020
01-75900-02-030
01-75900-03-010
01-75900-08-010
CITY OF APPLE VALLEY TIF DISTRICT 15
150TH ST
LE=i I
TIF District 1
B-1
I I
Legend
Bari RO3dS
Parks
%ads
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
EXHIBIT C
Projected Tax Increment
City of Apple Valley, Minnesota
Tax Increment Financing District No. 15
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
Estimated financing costs
Interest expense
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
499691 4v2
C-1
Total
$23,609,000
$50,000
$0
so
$23,659,000
$5,000,000
$11,103,000
so
$886,000
$0
$0
$0
$2,360,000
$19,349,000
$4,310,000
$23,659,000
$19,349,000
49969 i 4v2
10/18/2012
EXHIBIT D
Apple Valley EDA
Tax Increment Financing District No. 15
Estimated tax Increments Over Maximum Life of District
City of Apple Valley
Apple Valley EDA
Tax Increment Financing District No. 15
Estimated Tax Increments Over Maximum Life of District
Parkside Village
Based on Pay 2012 Tax Rate = 109.532% 44.110% 31.426% 28.440% 5.556%
Estimated
TIF Taxes New Base Captured Total
District Payable Tax Tax Tax Tax
Year Year Capacity Capacity Capacity Increment
2014 0 0
1 2015 170,464 (25,393) 145,071 158,900
2 2016 461,879 (25,393) 436,487 478,094
3 2017 484,973 (25,393) 459,581 503,389
4 2018 509,222 (25,393) 483,829 529,949
5 2019 534,683 (25,393) 509,290 557,837
6 2020 561,417 (25,393) 536,025 587,120
7 2021 589,488 (25,393) 564,096 617,866
8 2022 618,962 (25,393) 593,570 650,150
9 2023 649,911 (25,393) 624,518 684,048
10 2024 682,406 (25,393) 657,014 719,641
11 2025 716,526 (25,393) 691,134 757,014
12 2026 752,353 (25,393) 726,960 796,255
13 2027 789,970 (25,393) 764,578 837,459
14 2028 829,469 (25,393) 804,076 880,722
15 2029 870,942 (25,393) 845,550 926,149
16 2030 914,489 (25,393) 889,097 973,847
17 2031 960,214 (25,393) 934,821 1,023,930
18 2032 1,008,225 (25,393) 982,832 1,076,518
19 2033 1,058,636 (25,393) 1,033,243 1,131,734
20 2034 1,111,568 (25,393) 1,086,175 1,189,711
21 2035 1,167,146 (25,393) 1,141,753 1,250,588
22 2036 1,225,503 (25,393) 1,200,111 1,314,508
23 2037 1,286,778 (25,393) 1,261,386 1,381,624
24 2038 1,351,117 (25,393) 1,325,725 1,452,096
25 2039 1,418,673 (25,393) 1,393,281 1,526,091
26 2040 1,489,607 (25,393) 1,464,214 1,603,786
Total 23,609,026
0 NORTHLAND STRATEGIES
Special Prol•cls Gioup
D-1
0
63,991
192,534
202,721
213,417
224,648
236,440
248,823
261,824
275,475
289,809
304,859
320,662
337,255
354,678
372,972
392,181
412,350
433,527
455,764
479,112
503,627
529,369
556,397
584,777
614,576
645,865
9,507,653
City County School Other
TIF *TIF TIF TIF
Related Related Related Related
Share Share Share Share
0 0 0
45,590 41,258 8,061
137,170 124,137 24,253
144,428 130,705 25,535
152,048 137,601 26,883
160,050 144,842 28,297
168,451 152,445 29,784
177,273 160,429 31,341
186,535 168,811 32,980
196,261 177,613 34,699
206,473 186,855 36,504
217,196 196,558 38,401
228,455 206,747 40,391
240,276 217,446 42,482
252,689 228,679 44,676
265,722 240,474 46,981
279,408 252,859 49,399
293,777 265,863 51,940
308,865 279,517 54,609
324,707 293,854 57,409
341,341 308,908 60,350
358,807 324,715 63,439
377,147 341,311 66,681
396,403 358,738 70,086
416,622 377,036 73,661
437,852 396,249 77,414
460,144 416,423 81,354
6,773,690 6,130,073 1,197,610
49969 1 4v2
V18/2012
City of Apple Valley
Dakota County
Rosemount-Apple Valley-Eagan ISD 196
Apple Valley EDA
Tax Increment Financing District No. 15
Impact On Other Taxing Jurisdictions
(Taxes Payable 2011)
City of Apple Valley
Apple Valley EDA
Tax Increment Financing District No. 15
Impact on Other Taxing Jurisdictions
(Taxes Payable 2012)
Parkside Village
ANNUAL TAX INCREMENT
Estimated Annual Captured Tax Capacity (Full Development)
Payable 2012 Local Tax Rate
Estimated Annual Tax Increment
Percent of Tax Base
Dollar Impact of Affected Taxing Jurisdictions
Net Tax Tax Added
Capacity % of Total Increment Local Tax
(NTC) Share Rate
City of Apple Valley 44.110% 40.271% 645,865 1.389%
Dakota County 31.426% 28.691% 460,144 0.110%
Rosemount-Apple Valley-Eagan ISD 196 28.440% 25.965% 416,423 0,281%
Other 5.556% 5.073% 81,355
Totals 109.532% 100.000% 1,603,787
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 E
$1,464,214
109.532%
$1,603,786
Net Tax Captured
Capacity Tax
(NTC) Capacity
Percent of
Total NTC
46,491,474 1,464,214 3.15%
419,583,852 1,464,214 0.35%
148,173,078 1,464,214 0.99%
NORTHLAND STRATEGIES
3p•cial Ploi•sts 0,0u0
4996914v2
(18/2012
EXHIBIT F
Apple Valley EDA
Tax Increment Financing District No. 15
Present Value Analysis As Required By
Minnesota Statutes 469.175(3)(2)
City of Apple Valley
Apple Valley EDA
Tax Increment Financing District No. 15
Present Value Analysis As Required By
Minnesota Statutes 469.175(3)(2)
Parkside Village
1 Estimated Future Market Value w/ Tax Increment Financing 35,190,802
2 Payable 2012 Market Value 2,031,400
3 Market Value Increase (1-2) 33,159,402
4 Present Value of Future Tax Increments 12,396,164
5 Market Value Increase Less PV of Tax Increments 20,763,238
6 Estimated Future Market Value w/o Tax Increment Financing 6,879,041
7 Payable 2012 Market Value 2,031,400
8 Market Value Increase (6-7) 4,847,641
9 Increase in MV From TIF 15,915,597 2
Assume 5.0% annual appreciation over 25 year life of district.
2 Statutory compliance achieved if increase in market value from TIF (Line 9) is
greater than or equal to zero.
NORTHLAND STRATEGIES
Sp•cioi Ptoi•cts GrouD
F-1
Page :
4996914v2
EXHIBIT G
Tax Increment Financing District No. 15
Projected Tax Increment
City of Apple. Valley
Apple Valley EDA
`fax Increment Financing District No.1,5
Projected Tax Increment
rksi d VilIage
Asat riled 1110„.0.0,f, 1.t.I.00%, 0 Available otal
Tif l'axes Nevo. Rase Captured Otigittal E.,itificiated State Anrrival PV of iwaltak,,te-
DisArict Vri, Rayal:tte Tax 3Lx.. 7G:ix Twt Cilty lAtulitor Tax I' litrerrient:
Yr ' t....;:i .apar,ity Rato .trtererclortt Arittlitt. l.)ecilmt. Iftcrefileat 4„
-,. 11 ,, 1
0:1.,:....,,..:<',..i.:,•, f'...,;..11::;,,2.:.',..;.-i:::::;:.'
1.09,532', 158,90() iil.,5..,.::.,,.,::: - ,47,778
2,015 2016 461,879 12.5,..,1,':::::: 436,481 1.:(.) 4'78,094 .('-.4
' , : ::'0 '''' '.•:''.':)',.'''.:: ' - -II ) ,`,:' ' :' : .1 ..... 1 .''' s'''C'''''C'''' 9 i.: !>:(1) : i 39): 01 .':i;: 1 .. ,:n: 4.: 1,001,0
483,829 10.9,532% 1....29,9,,i9 ,,,,.:;::: ,-,•.,„:-',.,,,,,...-, , (1..„'„3 , 1.1:r,1::::), 475„046 1.,44t:::
201 fl ?01 5.,34!,68:E 1:::::':::,.::::.:.. 509,29(.) '..),09.,532'4. , C:1'...,9 , 08), 5().(1.045 1„.813
2019 2020 561„41.1 ,,,, 536,0.2 1„09.5„1 581?0 ,::::.„ 114) 5215,294 2.,
1 202(1 .2023. 5,89„418 c 564,09(.: 1.W.).5.32X, ( . {. S '... , 2
'8 2021 2022 ;) 591570 109,5329t:, 650,15.0 2.,3..4:1„1
9 (31:l4,048 .,4.6.3) 613,1,81. 3,710357
2 3 2t)24 68.2,4(ifi. , r..2$ .„1:1c.43) 6..()1.4 109,.., 71%641 f7:::::,.,96,..li: (2:591',..', :645,08(3 4,179,355
1.1.. 2024 2025 716,526 -(25..:3933 691134 109,532','4, 757,01.4 (7 i:.2,7 251: 678581 4
12 2025 2026 752,353 ) .3'...13) 726,960 109.532% 796,255 ,..',8,: 713,763 5.,132,N7
13 2026 202 18:9,970 ,ii:....„) - . 764,,.5y8 (}J )/'/( .837,459 -...:. (3,1935 750,698 5
1.4 202 2028 829,469 :(25,39.1) 804,07 109,532 880722 i88..c:17.2) :13,1711 '/(
1.5 2028 2029 870942 :(2...::: 845,550 109532'7,i, 926,149 (92 6.1.!...1.) (3, 3341: 8 30,200 6,600,5611
16 - 2029 203-0 914489 1 8E9097 109.53.2'7,, '973847 07.385) 872,9 7100,564
17 2030 .2Q31. 960214: ( 934,821 09.532% 1;023;930 C.1.02 1393) .,(Ii8.6) 917,851. 7,,,505,868
. 1 - :8. 20.31, 20:32 1,008,225. (.25,393') .:(82,83,2 109..532% 1;076,518 n.137,652) 1.3„ar '954,9E.)].. 8,]..116,493
19 '2032 2033 1,058,636 ( 1„0.33;243 1,09.,532',',/,,, 1,1.31..„734 - 1,1.. (4,074 ) J., OK486 :8,63.2„465
20 2033, 2034 1,11.1„:568 (1:::::::";93) 1,086,175 1,09..532% 1,11..89,711 (11...8,971) (4,283) L066,457 9.,153,806
21. 2034 •035 1,167,146 (25,393' '1,141,753 3,09,532?4, 1 .(45 1,121 9,680,544
22 2035 2036 1,225„583 - (2 5 , ..?....9 3":. 1,200,111 109.532'k 1,31:4,508 (.1.31 .(4,732) 1,178,325 10,212;706
23 2036 2037 1,28637'8 , .3) 1,261,386 109.53.2% 1,381,624 (13'8,1. 62) 0,97 1„238,488 1,0,750,31.8
24 203.7 203.8 1,351, (.2 1,325,725 ))/ ( (5,223) 1,301,659 1,1
25 2038 203,) 1,418 .; 25393) 1,393,281 109..532% 1,526;091, ::: , „. , ..4.) , . - .:)) L367,988 1.1.,842.(117
2 :4)39 2040 1,489, 6tY7
,- 5 1 ,9 1 1()S ,(1;03, 7
TOTAL 23,609,026 (2,360:903)
Kgy..,Ass$44.9
1 Assumes e.slirtiacci assessed market v0,,le of th 35% t:;:amptOtf...,:j 2013, 1.00`x, cornp 2014,
2 New howtjrtg units, t roortim irK:otr,e.
3 'fax rat is based on certified payable 2012 rate.,
4 d 3% anntial ty,,,,or 25 yOar
trICPX11(,111.:
•oHc for 25 year:.:; arte• first year of coliec.fiorl, tot// of 26 yeas,
6 P"V calcoiat(W1::,q1sed et) ,5err(i-annuai
G-1
774
1,84:9 21 163 131
1,437,634 1,2,396,1.64