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HomeMy WebLinkAbout11/08/2012 EDA Meeting44 *01,0 0.06 006 City of Apple NOTICE: The Apple Valley Economic Development Authority will hold a Special meeting at the Municipal Center, on Thursday, November 8, 2012, at 7:00 p.m. to consider the items listed in the following agenda: ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA NOVEMBER 8, 2012 — 7:00 P.M. (immediately following the City Council meeting) 1. Call to Order. 2. Approval of Agenda. 3. Approval of Minutes of June 14, 2012. Action Items: 4. Support for Modification to Dakota County Community Development Agency (CDA) TIF District #3. 5 Reimbursement Authorizations for Business Assistance Program. 6. Set Public Hearing for December 13, 2012, for Business Subsidy Agreements with IMH, LLC; Parkside Village Development. Information Items: T Project Updates: a. Review of EDA/City Powers. b. Bus Rapid Transit Oriented Development Study. c. Upcoming Parkside Village Schedule. d. Open for Business. 8. Other Items 9 Adjourn (Agendas are also available on the City's Internet Web Site http://www.cityofapplevalleyorg) ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota June 14, 2012 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held June 14, 2012, at 4:00 o'clock p.m., at Apple Valley Municipal Center. PRESENT: President Severson, Commissioners Bergman, Goodwin, Grendahl, Hamann- Roland, and Hooppaw. ABSENT: None City staff members present were: Executive Director Lawell, City Attorney Dougherty, Associate City Planner Bodmer, Associate City Planner Dykes, Finance Director Hedberg, City Planner Lovelace, Community Development Director Nordquist, and Department Assistant Murphy. APPROVAL OF AGENDA Meeting was called to order at 4:02 p.m. by President Severson. Executive Director Lawell stated that Item 7 — Public Hearing to consider a business subsidy agreement with Stream International Inc. to fund improvements and job creation at Time Square be removed from the agenda. MOTION: of Hamann-Roland, seconded by Grendahl, approving the agenda for today's meeting as presented with the removal of Item 7. Ayes - 6 - Nays - 0. APPROVAL OF MINUTES MOTION: of Bergman, seconded by Goodwin, approving the minutes of the special meeting of June 4, 2012, as written. Ayes - 6 - Nays - 0. APPROVAL OF CONSENT CARROLL CENTER 4TH ADDITION DISCLAIMER OF INTEREST MOTION: of Hamann-Roland, seconded by Bergman, adopting Resolution No. EDA-12-09 authorizing the execution of a Disclaimer of Interest in western ten feet (10') of Lot 1, Block 1, Carroll Center 4th Addition (Red Robin Property for Cedar Ave road project). Ayes - 6 - Nays - 0. IMH MEMO OF UNDERSTANDING Finance Director Ron Hedberg provided an update of the Memorandum of Understanding prepared by City Attorney Mike Dougherty and accepted by IMH between IMH Special Asset NT 175-AVN, LLC and Apple Valley Economic Development Authority and the City of Apple Valley. DA 3 Economic Development Authority City of Apple Valley Dakota County, Minnesota June 14, 2012 Page 2 Discussion followed. MOTION: of Goodwin, seconded by Hamann-Roland, approving the Restated Memorandum of Understanding between IMH Special Asset NT 175-AVN, LLC, the Apple Valley Economic Development Authority and the City of Apple Valley. Ayes - 5 - Nays - 1. (Grendahl) EDA ADMINISTRATIVE ITEMS/REFERENCE NOTEBOOK Community Development Director Bruce Nordquist provided background materials and informational resources of interest to the EDA. The reference notebook included bylaws, operations fund, business assistance and TIF policies and applicable EDA State Statutes. Discussion followed. PUBLIC HEARING TO CONSIDER BUSINESS SUBSIDY AGREEMENT WITH TIME SQUARE SHOPPING CENTER, LLP TO FUND IMPROVEMENTS AT TIME SQUARE President Severson opened the public hearing at 6:14. Associate Planner Margaret Dykes provided the background information related to a Business Subsidy Agreement that would authorize funding resources for substantial construction to occur at the Time Square Shopping Center, located southwest of the intersection of Cedar Avenue and 149th Street W. Discussion followed. President Severson closed the public hearing at 6:43. MOTION: of Hooppaw, seconded by Bergman, adopting Resolution No. EDA-12-10 approving the Business Subsidy Agreement between the Apple Valley EDA and Time Square Shopping Center II, LLP to provide up to $157,400 for substantial construction costs at Time Square Shopping Center. Ayes - 6 - Nays - 0. BUSINESS ASSISTANCE AGREEMENT WITH TIME SQUARE SHOPPING CENTER, LLP TO FUND IMPROVEMENTS AT TIME SQUARE Associate Planner Margaret Dykes stated that the City of Apple Valley received a Redevelopment incentive Grant from the Dakota County Community Development Agency (CDA) in 2010, for exterior renovations at Time Square which could include remilling and restriping of the exiting parking lot, extending a pedestrian walkway from the property to a pedestrian trail on Cedar Avenue and installing curb cuts at landscape islands to facilitate stormwater runoff. Economic Development Authority City of Apple Valley Dakota County, Minnesota June 14, 2012 Page 3 MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. EDA-12-11 approving the Business Assistance Agreement between the Apple Valley EDA and Time Square Shopping Center II, LLP. Ayes - 6 - Nays - 0. PROJECT UPDATES No project updates discussed. MOTION: of Hamann-Roland, seconded by Hooppaw, to adjourn. Ayes - 6 - Nays - 0. The meeting was adjourned at 6:47 p.m. Respectfully Submitted, 1 11 ti Joari Murphy, Departmen Approved by the Apple Valley Economic Development Authority on TO: 00 6 060 City of App e„ Valle Community Development President and Board Members of the Economic Development Authority, Executive Director DA FROM: Bruce Nordquist, Community Development Director, AICP DATE: November 8, 2012 SUBJECT: Support for Modification to Dakota County Community Development Agency (CDA) TIF District #3 The Dakota County CDA has requested support from the EDA to modify the TIF Plan for their District #3. Their District is the Augustana property and the financial assistance provided for that housing development. Due to a loan repayment by the property owners, approximately $1.2 million received by the CDA is proposed to be spent by the CDA for future housing opportunities in Apple Valley. Attached with this request are the following supporting materials: • A map of TIF District #3. A map of the TOD (Transit Oriented Development) Target Areas where the CDA wants to utilize the resources. • A summary prepared by the CDA of the probable impact of the modification to TIF District #3 on City provided services and the County ability to issue debt. A CDA representative has been asked to attend to respond to any questions that may arise. The CDA is not proposing to expand the size of the District. The purpose of the modification is to provide housing project assistant outside the established District. State Statute allows the CDA to spend increment from housing districts (the loan repayment is considered "increment") for income qualified housing, 20 percent of the units affordable at 50 percent of the area median income, for example. A resolution of support is being prepared for EDA consideration and will be available at the meeting. CDA TIF Distri 3 (County TIF District 022) TIF Parcel Areas City Boundary Other Cities Interstate Highway County Highways & Roads Local Road 7. State & US Highway Apple Valley TIF District 3 has 1 parcel in Apple Valley Copyright 2004, Dakota County This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information and data located in various City, County, and State Offices and other sources, affecting the area shown, and is to be used for reference purposes only. Dakota County is not responsible for any inaccuracies herein contained. If discrepancies are found please contact the Dakota County Office of Geographic Information Systems. 0 01 02 0.4 0.6 0.8 socalmarammaramern Miles 160TH ST W 150TH ST W 0 z 0 TOD Target Areas Apple Valley Cedar Ave Stations Cedar Ave BRT Area within 1/2 Mile Area within 1/4 Mile 0 Miles Prepared by Office of GIS Map Date: June 27, 2012 Copyright 2012, Dakota County This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information and data located in various city, county, and state offices and other sources, affecting the area shown and is to be used for reference purposes only. Dakota County is not responsible for any inaccuraci herein contained. If discrepancies are found, pleasE contact this office. Probable impact of the Modification to TIF District #3 on city provided services and the County's ability to issue debt. The probable impact of the Modification to the District on police protection is not expected to be significant. With any addition of new residents or businesses, police calls for service will be increased. The proposed development, in and of itself, will not necessitate new capital investment in vehicles or facilities. Proposed development occurring subsequent to this Modification will be located outside of the District and will pay property taxes in accordance with state law. The probable impact of the District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The City may have a slight increase in medical related calls; however, the development is not expected to require an increase in capital investment in vehicles or facilities. The impact of the District on public infrastructure is expected to be minimal. Proposed housing development will be located on existing roadways or within transit corridors, to support the use of existing infrastructure. The development is not expected to necessitate the construction of new streets, roads, or infrastructure for sanitary sewer, storm sewer and water. The proposed development will pay special assessments for infrastructure, if applicable, and will pay sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the County's ability to issue future debt or on the County's debt limit. City of Apple Vailev TO: President and Board Members of the Economic Development Authority, Executive Director FROM: Margaret Dykes, Associate City Planner MEETING DATE: November 8, 2012 SUBJECT: Reimbursement to AV 147 Properties, LLC for Substantial Building Improvements - 7600 -147 Street W. NOTE: Due to the large number of invoices, these are not attached to this memo but are available in Planning Department for review. Attachments: 1. Site Location Map 2. Reimbursement Request Form 4. Certificates of Occupancy bA MEMO Community Development Department Discussion On June 14, 2012, the EDA entered into a Development Agreement with the owner of the building located at 7600-147 St. W. to support substantial building improvements that were necessary to bring the building into compliance with Building Code requirements. The 14,000 sq. ft. building, which was constructed in 1972, required significant improvements including a complete retrofit of the HVAC system, rewiring of the electrical system, repairing the roof, installing a hydraulic wheelchair lift to the second story, and resurfacing the parking lot among other improvements. The owner, Mr. Keith Sperbeck, stated the total project costs are approximately $654,350 including site acquisition; he requested assistance in the amount of $149,100 to defray some of the costs of the improvements. The funds for the assistance came from changes to Tax Increment Financing (TIF) law that allowed the broad use of tax increment from any TIF district to assist in the construction or rehabilitation of private development, and create jobs, both temporary construction jobs and permanent jobs. Construction on any project receiving funds from this program had to begin by July 1, 2012, and all expenditures needed to be completed by December 31, 2012. The improvements listed in the Development Agreement have been completed, and two new tenants located on the first floor, Greater Midwest Fundraising and AAA Insurance, have received Certificates of Occupancy. However, there are still improvements that will be made to an additional first floor tenant space as well as the second floor. Thus far, Mr. Sperbeck has expended $225,008 in addition to the $328,750 for site acquisition. Mr. Sperbeck is now requesting reimbursement of $149,100, and has submitted invoices and proof of payment of said invoices. The Finance Director has reviewed the invoices and found them to be in order. The project has created 18 permanent non-construction jobs and 67 construction jobs. Recommended Action: If the EDA concurs, staff is recommending the following motion: • Adopt the draft resolution approving the reimbursement of $149,100 to AV 147 Properties, LLC for the completion of substantial construction costs at 7600-147 Street W. 3. Invoice and Payment List 5. Building Photos APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA-12- A RESOLUTION AUTHORIZING THE MAKING OF REIMBURSEMENT TO AV 147 PROPERTIES, LLC WHEREAS, the Board of Commissioners of the Apple Valley Economic Development Authority ("EDA") finds as follows: 1. That on December 20, 2011, the City Council approved a spending plan for TIF District No. 13 (the "TIF District") in accordance with Minnesota Statutes, Section 469.176 Subd. 4m (the "Spending Plan") to utilize existing tax increment revenues from the TIF District by December 30, 2012, in order to stimulate construction or rehabilitation of private development in a way that will also create or retain jobs. 2. That AV 147 Properties, LLC (the "Developer") requested assistance from the EDA to support building renovations, construction and site improvements consistent with the Spending Plan at property identified as the East 85 feet of Lot 1, Block 2 and the West 40 feet of Lot 2, Block 2, Valley Commercial Park First Addition, (7600-147 St. W.). 3. That the EDA found it to be in the best interest of the EDA and City to utilize a portion of the revenues from the TIF District to provide assistance to the Developer for substantial building improvements, which include retrofitting of the HVAC system, rewiring the electrical system, and repairing the roof structure to comply with the City Building Code. 4. That on June 4, 2012, the EDA and the Developer entered into a Development Agreement and authorized the use of $149,100 for the substantial building improvements listed in the Development Agreement. 5. 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I1 ev TO: Economic Development President, Board Members, and Executive Director FROM: Kathy Bodmer, Associate City Planner MEETING DATE: November 8, 2012 SUBJECT: Set Public Hearing to Consider Business Subsidy for Parkside Village EDA MEMO Community Development The EDA is asked to set a public hearing for an upcoming December 13, 2012 meeting, to be scheduled, to consider a business subsidy for IMH LLC. IMH has applied for Tax Increment Finance (TIF) in connection with the development of the Parkside Village project, a multiple family development, consisting of two buildings with a total of 322 units, located on the northeast corner of Galaxie Avenue and 153 Street West. The public hearing is intended to allow for discussion of financial assistance in the form of a business subsidy for the creation of construction and permanent jobs, through the development of a multiple family housing project. Recommended Action: Staff recommends that the Apple Valley Economic Development Authority set a public hearing for December 13, 2012, to consider a business subsidy for IMH Special Asset NT 175-AVN, LLC. and the beneficiary, a copy of which is ava? Community Development Department. NOTICE IS FURTH heard at the time and place NOTICE City of Appl Authority if the Statutes Sections 11 NOTICE OF PUBLIC HE ' 1 G FOR A PROPOSED BUSINESS SUBSIDY IN THE CITY OF APPLE VALLEY NOTICE IS HEREBY GIVEN that the Apple Valley Economic Development Authority will hold a public hearing at the Apple Valley Municipal Center, 7100 - 147 Street W., on December 13, 2012, at 7:00 p.m., or as soon thereafter as possible, to consider a business subsidy pursuant to Minnesota Statutes Sections 1161993 to 116J.995. The proposed business subsidy is for IMH Special Asset NT 175 — AVN, LLC, an Arizona limited liability compan the beneficiary, for the purposes of creating construction jobs through the development of n lt1-family housing prof ect located east of Galaxie Avenue and north of 153 Street West. Specific terms of the proposed business subsidy are detailed in a draft business subsidy agreement between Apple Valley Economic Development Authority view at the Apple Valley Municipal Center, hat all interested parties will be given an opportunity to be N that if you are a resident or owner of taxable property in the e a written complaint with the Apple Valley Economic Development conomic Development Authority fails to comply with Minnesota 16J.995, and that no action may be filed against the Apple Valley Economic Development Authority for the failure to comply with the statutes unless a written complaint is filed. DATED this 8th day of November, 2012 Pamela J. Gackstetter, City Clerk City of Apple Valle TO: Community Development President and Board Members of the Economic Development Authority, Executive Director FROM: Bruce Nordquist, Community Development Director, AICP DATE: November 8, 2012 SUBJECT: EDA Project Updates Attached to this cover memo are updates assembled by the City Attorney or staff related to the following topics: 7a. Review of EDA/City Powers (Michael Dougherty) 7b. Bus Rapid Transit Oriented Development Study (Kathy Bodmer) 7c. Upcoming Parkside Village Schedule (Kathy Bodmer) 7d. Open for Business (Bruce Nordquist) Brief will occur with each item. Etvi D Dougherty, Molenda, Solfest, Hills & Bauer RA. OUGHERTY MOLENDA Attorneys I Advisors MEMORANDUM TO: Bruce Nordquist, Community Development Director FROM: Michael G. Dougherty, City Attorney DATE: November 2, 2012 RE: City v. EDA Powers Our File No. 66-11273 E riot. 7300 West 147th Street: Suite 600 Apple Valley, MN 55124 (952) 432-3136 Phone (952) 432-3780 Fax www.dmshb,com Cities derive their power from the State legislature. Any specific action taken by a city must be based on an enabling statute authorizing the activity. Historically, city authority flows into one of three categories: (1) police power (regulating conduct); (2) government service power (providing utilities); or (3) planning power (zoning ordinances). Over the last several decades, city powers have expanded, through legislation, into areas of development. Some common development activities have been the building of parking ramps, skyways and plazas. These types of activities are thought of as the exercise of a non-traditional power. In furtherance of the use of non-traditional powers, the Minnesota Legislature in 1987 enacted Chapter 469-Economic Development, placing economic powers and financing tools into one statute. Under Chapter 469, a city is granted specific power to construct parking ramps, skyways and other public amenities and is provided with financing alternatives to pay for such construction. Within Chapter 469, the Legislature also provided the city with economic development powers that expand beyond public facilities (e.g. housing, rehabilitation, reclamation, industrial development, improvements, etc.). However, in order to implement these additional powers, the Legislature requires the City to create a separate entity (e.g. Housing and Redevelopment Authority (HRA); Economic Development Authority (EDA); etc.). In providing for the establishment of these separate entities, the Legislature gave the city the authority to permit an EDA to exercise HRA powers or an HRA to exercise EDA powers. Once established, an EDA may use tax increment financing for qualified projects. An EDA is established by council resolution. The resolution may limit the power of the EDA (e.g. sale of all bonds need to be approved by the city council before issuance). The limits are set forth in §469.092 of the statutes. However, once established, the EDA is recognized as a separate public body corporate and politic and a political subdivision of the state which can sue and be sued in its own name. As a separate body, the EDA should be careful to distinguish its activities as permitted pursuant to its resolution of establishment, from those activities of the city council. CITY OF APPLE VALLEY RESOLUTION NO. 1990-15 ENABLING RESOLUTION - ESTABLISHING THE APPLE VALLEY ECONOMIC DEVELOPMENT 2WTHORITY UNDER MINNESOTA STATUTES SECTIONS 469.090 THROUGH 469.108 BE IT RESOLVED by the City Council (the "Council") of the City of Apple Valley, Minnesota (the "City"), as follows: 1. Recitals. The City is authorized pursuant to Minnesota Statutes, Sections 469.090 through 469.108 (the "Economic Development Authority Act"), to establish an economic development authority for the City, and the Council desires to do so in order to promote the economic, commercial, housing, and industrial de,velopment and redevelopment of the City and in order to consolidate the activities heretofore undertaken by the City in those areas. The City has caused notice of a public hearing on the establishment by the City of an economic development authority to be published in a newspaper of general circulation in the City once each week for two consecu- tive weeks, and pursuant to such notice, a public hearing on said question has been held by the Council on the date hereof, at which hearing all'persons desiring to present their oral or written comments on this proposal were given an opportunity to do so. 2. Establishment of Economic Develooment Authorit Pursuant to the Economic Development Authority Act, the Council hereby establishes an economic development authority for the City, to be known as the Apple Valley Economic Development Authority (the "EDA"). The EDA shall be governed by a board of commissioner thereof consisting of the five members of the Council, and the term of each such commissioner of the EDA shall coincide with that commissioner's membership on the City Council. 3 Powers. The EDA shall have all powers given to an economic development authority pursuant to the Economic Development Authority Act. ATTEST: 1 CI; Duly adopted by the City Council of the City of Apple Valley, Minnesota, on January 11, 1990. Mayor 282964.1 1. Recitals. Council all as CITY OF APPLE VALLEY RESOLUTION NO 1995 RESOLUTION AMENDING AND RESTATING .ENABLING RESOLUTION ESTABLISHING THE APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY UNDER MINNESOTA STATUTES, SECTIONS 469,090 THROUGH 469.103 BE IT RESOLVED by the City Council (the "Council") of the City of Apple Valley, Minnesota (the "City"), as follows; (a) On January 11, 1990, the Council adopted its Resolution. Now 1990-15, entitled •"Enabling Resolution Establishing the Apple Valley Economic Development Authority tinder Minnesota Statutes, Sections'469.090 Through 469.108" (the "Enabling Resolution"). (b) Pursuant to the Enabling Resolution, the City established the Apple Valley Economic Development Authority (the "EDA"). (c) It has been proposed that the Council amend the . Enabling Resolution, and the Council has on the date hereof held a public hearing, which hearing was preceded by publication of a notice thereof in the City's official newspaper once a week for two consecutive weeks prior to the date hereof, on the question of amending the Enabling Resolution to provide for a seven-member, instead of a five- member, Board of Commissioners of the EDA. 2. Amendment of Para ra h 2 of Enablin. Resolution. Paragraph 2 of the Enabling Resolution is hereby amended to read as follows (added material is shown by underscoring and deleted material is enclosed in brackets): 2 Establishment of Economic Develo ment Authorit Pursuant to the Economic Development Authority Act, the Council hereby establishes an economic development authority for the City, to be known as the Apple Valley Economic Development Authority (the "EDA"). The EDA shall be governed by a board of commissioners thereof consisting of seven members five of whom shall be the members of the rovided in Minnesota Statutes Section 469.095 Subdivision 2 oara ra hs c and e [the five members of the Council ] , and the term of each such commissioner of the EDA who is a Councilmember shall . coincide with that commissioner's membership on the City Council. 3. Restatement of Enablin Resolution As Amended Hereb The Enabling Resolution, as amended pursuant to this Resolution, reads as follows: 1. Recitals. The City is authorized pursuant to Minnesota Statutes, Sections 469.090 through 469 (the "Economic Development Authority Act") , to establish an economic development authority for the City, and the Council desires to do so in order to promote the economic, commercial, housing, and industrial development and redevelopment of the City and in order to consolidate the activities heretofore undertaken by the City in those areas. The City has caused notice of a public hearing on the establishment by the City of an economic development authority to be published in a newspaper of general circulation in the City once each week for two consecutive weeks, and pursuant to such notice, a public hearing on said question has been held by the Council on the date hereof, at which hearing all persons desiring to present their oral or written comments on this proposal were given an opportunity to do so. • 2. Establishment of Economic Development Authority. Pursuant to the Economic Development Authority Act, the Council hereby establishes an economic development authority for the City, to be known as the Apple Valley Economic Development Authority (the "EDA"). The EDA shall be governed by a board of commissioners thereof consisting of seven meiibers, five of whom shall be the of the Council, all as provided in Minnesota Statutes, Section 469.095, Subdivision 2, paragraphs (c) and (e), and the term of each such commissioner of the EDA who is a Councilmember Shall coincide with that commissioner's membership on the City Council. 3. Powers. The EDA shall have all powers given to an economic development authority pursuant to the Economic Development Authority Act. Duly adopted by the City Council of the City of Apple Valley, Minnesota, on February 2T, 199 ATTEST: 282964.1 Mar/ Mueller, City Clerk 1 Willis E. Br nning, ay or Apple City of 'Valley MEMO Community Development TO: Economic Development President, Board Members, and Executive Director FROM: Kathy Bodmer, Associate City Planner MEETING DATE: November 8, 2012 The first open house for the City of Apple Valley Cedar Avenue Bus Rapid Transit-Oriented Development (BRTOD) Guide Plan was held on October 23, 2012. The attached drawings were presented and feedback was received concerning the preliminary guide plans for the 1/2-mile area surrounding the transit stations at 147 Street and 155 Street. In addition to the open house, the Apple Valley Chamber of Commerce is planning a luncheon event on Tuesday, November 13, to receive the information attached to this memo. This memo will present the EDA with some of the preliminary findings from the BRTOD Guide Plan project. Hoisington Koegler Group Inc. (HKGi) has been hired to create a BRTOD Guide Plan that will be used to help the City to guide development to create housing, retail, live/work, office and ED 'is 13 SUBJECT: Cedar Avenue Bus Rapid Transit-Oriented Development Guide Plan ("Apple Valley BRTOD Guide Plan") Update entertainment uses in more intensive configurations that take advantage of the enhanced transit service on Cedar Avenue. The BRTOD Guide Plan is funded through a $60,000 Livable Communities Demonstration Account (LCDA) Pre-Development Grant from the Metropolitan Council. The BRTOD Guide Plan will include the following three elements: (1) a synthesis of recently completed market studies and demographic analyses, (2) guide plans and design principles, and (3) recommended land use controls. (1) Preliminary Market Findings: The first portion of the BRTOD Guide Plan will review market conditions and opportunities. The following are some preliminary findings from the market analysis: 1. Cedar Avenue in Apple Valley offers potential for substantial additional retail development, particularly near the Cedar Avenue/County Road 42 intersection. 2. The dynamics of the regional office market mean that demand for high-end corporate office development will be less strong along Cedar Avenue in Apple Valley. Residential development offers potential for growth, for a variety of housing types, densities and formats along the Cedar Avenue BRT corridor. Apple Valley is uniquely positioned to capture a dominant share of the Dakota County market for various TOD-related forms of residential development. 4. Apple Valley lodging market not likely to support any substantial net additional supply within the next 10-20 years. (2) Guide Plans/Design Principles: The second portion of the BRTOD Guide Plan will present some preliminary land use guide plans for the 1/2-mile area surrounding the station stops at 147 Street and 155 Street. The concept plans presented at the open house contained the following elements: BRTOD Guide Plan Study Update EDA Memo November 8, 2012 Meeting Page 2 147 Street Station: NW Quadrant Cedar Avenue & County Road 42: The northwest quadrant of Cedar Avenue and County Road 42 may be likely for redevelopment because many of the buildings in the area are becoming outdated and the blocks are smaller which would allow for easier land assembly. • NE Quadrant Cedar Avenue & County Road 42: This area is already fairly transit-supportive with high density housing, major employers including Wings, the Apple Valley Municipal Center and the Dakota County Western Services Center. This area is not expected to undergo significant change in the next 10-20 years. • Auto-Oriented Uses NW and NE Quads: There is likely to continue to be demand for more auto-oriented uses near the intersection of Cedar Avenue and County Road 42. A crescent shaped zone around the intersections might allow for continuation of smaller, stand-alone pad businesses such as restaurants with drive-thru windows and banks with drive-thru tellers. Outside the crescent-shaped areas, auto-oriented uses might be prohibited to encourage more transit-supportive uses. 155 Street Station: • SW Quadrant Cedar Avenue and County Road 42: The area in the southwest quadrant of Cedar Avenue and County Road 42 is currently made up of predominately retail and housing uses. Given ownership patterns and market viability, it is unlikely that the City will see major changes driven solely by the private market. • Land use concept #1: • Retail uses remain northwest corner of Cedar Avenue and County Road 42. Mixed-use/higher density residential in the center of the quadrant. • Medium density residential on the north side of the quadrant. • Extreme northwest corner (Pennock Avenue & 145 Street), cottage-style lower density senior development. o Land use concept #2: • Adds more office development • Retains more retail Decreases residential development, SE Quadrant Cedar Avenue and County Road 42: More significant changes are expected in this quadrant. • New and renewed pad sites north and west of Target. • Enhanced connection between sidewalk along Cedar and front of Target. • Pedestrian connections from 157 Street residential area north to County Road 42. • East of the Apple Valley Transit Station (AVTS) is mixed-use. • East of the mixed-use area is cultural/arts area consistent with recommendations in the ALA report. BRTOD Guide Plan Study Update EDA Memo November 8, 2012 Meeting Page 3 • Auto-oriented uses in SW and SE Quads: Like the north side of Cedar Avenue and County Road 42 intersection, crescent-shaped areas immediately abutting the Cedar/County Road 42 intersection will continue to see auto-oriented uses, some with drive-thru windows. Auto- oriented uses are proposed at 153 Street and Cedar Avenue. South of Cub may be set up to be more transit-supportive uses including mixed-use, higher intensity housing and entertainment uses. Drive-up windows could be excluded from this area. (3) Land Use Controls: The third part of the BRTOD Guide Plan will contain recommendations for tools the City may implement to help regulate land uses in the stations areas along Cedar Avenue. Mixed-use development, reduced setbacks, reduced parking requirements, and other transit-supportive techniques are not currently provided in the zoning districts that currently surround the transit stations. The consultant is currently reviewing the City's zoning code and will make recommendations concerning approaches the City may want to use to take advantage of transit-oriented development opportunities, while ensuring existing properties continue to remain in compliance with the zoning code. ' � n:. k5�rr':;� w..�,., V1: f� . a) fp :: ;= s.. .J.f •. F t brt '14 LU 0 CL 0 >— 0 (J) 0 CC) 0 0 cu F- cL i 4 - 0} c 0 0 eeleeeeeeel w CU R5 0_ 4' Q. 0 4- v Cu E a a) a) 0 0 v 4- C.) a c a 4- c c CU 0 u (I) 0 a v, U to I-- 0) CC C C C E CU ro a 0 ro © 4 -' 4- L' CU l-- u i a u cv +-f c a 4- E 4- c v 4- c a� 0 Cu 0 c a 4- a i C See I a 4- Q c 4 2 c a C�1 a N E Q v cu u c F v CC - 0 m Cr c Q c a p s 0 0 C) c katamms 9 t • si a� brt brt brt bry TUN 441'. brt LU 0 uJ v) LU 0 0 -.0 WS) ?, 0 4J E 0 LJ 7f) 73 Cl.) . c C C ZS , • E c c 'Es 0 0 CZ (2) '''.- N N QJ E et) e, City of Appl Valley MEMO Community Development EDA TO: Economic Development President, Board Members, and Executive Director FROM: Kathy Bodmer, Associate City Planner MEETING DATE: November 8, 2012 SUBJECT: Parkside Village Project Review Timeline Attached for Economic Development Authority's information is a timeline for the review of the Parkside Village development project. The property owner, IMH, LLC, and developer, Titan Development I, LLC, are proceeding with their development proposal. The first phase of the project, which includes the construction of two multiple family buildings with a total of 322 units, was reviewed and acted upon by the Apple Valley Planning Commission at its October 17, 2012, meeting. The next step in the process will be review and approval of land use actions, vacations, tax increment financing, business subsidy agreement and purchase agreement for Kelley Park. Because there are several actions that are needed from both the City Council and the EDA related to this project, a timeline was prepared to help organize all of the tasks and meetings that will be needed. Economic Development Authority (EDA) November 20, 2012 Meeting (or December 13?) • Resolution Amending Master Dev Program & Establishing TIF District 15 • Development Assistance Agreement • TIF Financing Plan December 13, 2012, Meeting • Business Subsidy Agreement — EDA holds public hearing & makes recommendation to City Council City Council November 20, 2012 Meeting • Land Use Actions including: Rezoning/PD-739 Amendments, Preliminary Plat, Site Plan Review/Building Permit Authorization, Final Plat, Private Installation Agreement and PD Agreement • Complete Vacation of portions of Fortino Street and Fontana Trail ROW and drainage & utility easements • Tax Increment Financing Request o Hold public hearing to consider resolution amending Master Development Program and Establishing TIF District 15 o Development Assistance Agreement o TIF Financing Plan December 13, 2012 Meeting • Business Subsidy Agreement — City Council considers agreement • Kelley Park Expansion — City Council considers consistency with Comp Plan and Acquiring Additional Parcels for Kelley Park �-i E eL E ti E E L E (T, E 0 E z oe 0 00 e-I CO 0 01 0 E a. E 9_ 0 CL E ct 0 if, 2 • 4 E' • w E ?))_ tv , E < <0 ▪ E E )) -1L (1) MCCD is oif TO BUSINESS in your community Promoting entrepreneurism. Entrepreneurs are starting and growing small businesses in your community. By helping them gain access to financing and other business assistance, you can encourage small business development that grows your tax base, creates local jobs and increases community vitality. How we can help. MCCD's Open to Business program brings on-site business services specialists to your city that can expand your community development staffs expertise in such areas as start-up financing and business plan development. We can respond to requests for business assistance when those requests are beyond the range of the services normally provided by your municipal agencies. How we work. Our staff can provide one-on-one assistance customized to meet the needs of your small business owners and operators. Many of our clients receive help in planning and organizing their business ventures. We can also assist with financial management, marketing and regulatory compliance. Accessing capital for your businesses. MCCD operates a small business loan fund that can help your entrepreneurs access the capital they need to grow their businesses. We can also draw on our long-standing partnerships with area banks to help your businesses obtain bank loans and revolving lines of credit. As a participant in MCCD's "Open to Business" program, your community development agency can help promote more effective access to capital for your local businesses. How we partner with you. MCCD will work with city staff to develop materials that brand this as a program of your city and assist with outreach ideas to the business community. Or staff can meet clients at our office or their place of business. In addition, we can schedule on-site hours at your city hall or other public venue for walk-in consultations. This fee-for-service arrangement can provide you with a cost-effective alternative to an "in-house" business development program staffed and funded by your agency. Who we are. The Metropolitan Consortium of Community Developers is an association of 43 non-profit community development agencies that work to improve housing and economic opportunity throughout the Twin Cities metropolitan area. During this past year, our team of business development specialists has provided access to more than $1 million in business capital for our clients and technical assistance services for more than 200 area businesses. You can find our Web site at .opentobusinessmn.org. For more information, contact: Rob Smolund Metropolitan Consortium of Community Developers rsmolund • mccdmn.orq 612-789-7337, ext 11 fl Motronotitrin Consortium Con,munn, nounitipors 4- 7d Sharing business savvy C O Richard Sennott, Star Tribune Brooklyn Park is offering a program that Provide free one on one intensive, confidential counseling to entrepreneurs who are thinking of opening a business or expanding one. Rod Smolund is the counselor who call himself a "Business Therapist" and works with the entrepreneurs.Rod Smolund talked with Lynn Huynh in a conference room in City Hall, she wants to expand and move her restaurant. A business counselor is on hand every third Tuesday in Brooklyn Park to help people navigate the entrepreneurial waters « and it doesn't cost them anything. By MARIA ELENA BACA mbaca@startribuneicom Last update: March 26. 2011 - 7:07 PM Take notice, Brooklyn Park: The "Business Therapist" is ready to hear your money-making ideas. 10-030'," 111111,111110110111 Last Tuesday, adviser Rob Smolund met with Lynn Huynh, manager of her brother's restaurant, Kim Anh Pastry and Deli, on Edinburgh Center Drive. The siblings are contemplating a move and expansion to a former Dunn Brothers coffee shop across the street, and were looking for help to secure financing to take the step. In a half-hour meeting at City Hall, Smolund went through the restaurant's financials, listened enthusiastically to the details of the new location, and gave Huynh a handful of resources to check out for private financing, as well as a to-do list to check off before their next meeting. Smolund, an enterprise facilitator with the Metropolitan Consortium of Community Developers, is available for consultation the third Tuesday of each month at City Hall as part of a program made possible by the Brooklyn Park Development Corp.. a nonprofit funded by the city's Economic Development Authority. Users are business owners seeking to expand operations in Brooklyn Park, or entrepreneurs with a great idea and the drive to make it happen. The city has a deal with Smolund's organization, to pay his $50 hourly fee, up to $5,000. Participants pay nothing for his services. Smolund does a similar service in Minnetonka and North St. Paul. Other cities are in the pipeline. Brooklyn P arks business developer, Amy Baldwin, praised the way Smolund follows clients through the process, possibly strengthening and expanding the city's small business core. Print Powered rTribune co "We don t have the capacity to do what he does," she said. "If they run into a hiccup along the road, they have an ally to help them through." After about six months in operation, the program has been popular enough that the city has expanded Smolund's hours. He starts most of his Brooklyn Park days with several half-hour appointments; his free time often is filled by drop-ins. Smolund has seen one of his early protegees, Lara Babalola, to the point of opening her business, Divas Ave. Boutique, at the Shops at Village Creek, with loans from the city development corporation, WomenVenture and the consortium. He or a colleague has spent more than 50 hours counseling with 19 residents. In last Tuesday's session, Smolund warned Huynh about potential damage a move could do to the restaurant's brand; she countered that the new space was within sight of the old one. Plus, it has space for a large roaster, a drive-through window, better curb appeal and favorable lease conditions, she said. He encouraged her to get all the details in writing, and promised that with more information he'd help her make financial projections three years out, as part of an eventual loan application. Huynh is an unusually savvy entrepreneur, Smolund said. He called attention to the "Business Therapist" line on his business card. Sometimes, his work is just a matter of helping people streamline their ideas and fill out applications. Sometimes. he helps them to create a multi-year plan. Sometimes, he encourages — 2 — them to concentrate their efforts elsewhere. Bad ideas can succeed ' can't predict winners or losers," he said, adding that he's seen what he considers great ideas fail, and crummy ideas succeed, based on smart execution. What he does is help people identify their strengths and weaknesses, and when necessary encourages them to find partners to make their dreams reality. The city has microloans available for people who can't get access to commercial bank loans, but Smotund said entrepreneurs should be able to put at least 10 percent into a deal. He said he believes that the recent popularity of the program is a reflection of both people's renewed confidence in the recovering economy and of the desperation of people who are looking for any revenue source. Its a long process, and I help them with that," he said. "1 take a very holistic approach. if I don't feel their business has legs, I still help them. I tell them, look out a year." Maria Elena Baca • 612-673-4409 • print Powered t3y C "nail" Ce:15 Dakota County communities may team up on economic development - TwinCities.com Page 1 of 2 Dakota County communities may team up on economic development By Nick Ferraro nferraro pioneerpress.com TwinCities. com-Pioneer Press Posted: TwinCities.com Dakota County commerce could get a boost under a proposed partnership between its cities and a nonprofit group that assists small-business owners and entrepreneurs. Officials from the county's 11 biggest cities are discussing whether they should pool money and sign on with the Metropolitan Consortium of Community Developers. Through its Open to Business program, the Minneapolis-based organization aims to further small- business growth and development through financing and consulting. It currently works with 16 metro- area cities, with all but North St. Paul located in the west metro. After learning of the program from Jenni Faulkner, Burnsville's community development director, the Dakota County Community Development Agency proposed the idea to officials from several cities this spring. "Staff from each city is taking this proposal back to their respective economic development or port authority to determine their level of interest," said Andrea Brennan, the CDA's director of community and economic development. Under an informal plan developed by the MCCD, about $150,000 annually would be needed to fund the program countywide -- with half possibly coming from the CDA. The agency has earmarked funding for its fiscal year 2013 budget, which begins July 1, and will consider matching the cities' contribution, Brennan said. Each community would pay a share, based on population. Eagan, with the largest population at about 64,200, would pay $7,500 a year, as would Burnsville, Lakeville and Apple Valley. Inver Grove Heights would pay $6,250, while Hastings, Rosemount, Farmington, South St. Paul and West St. Paul would contribute $5,000 apiece. Mendota Heights would pay $3,750. If a contract is secured in Dakota County, MCCD would hire a full-time staff member who would be based out of the CDA office or someplace else in the county, according to the proposal. In Open to Business cities in Hennepin County, the MCCD holds two-hour "Test Drive Your Business Idea" sessions once a month. The organization plans to offer the same service in Dakota County, said Rob Smolund, MCCD's enterprise facilitator. Depending on the needs of a client, help can include business plan development, feasibility studies, cash flow and financing projections, marketing plans and licensing and filing requirements. Six Hennepin County cities took the Open to Business program in 2011, while another 10 did so this year. littn•//www twinoitipc orlm ilrlontritaxATc h.; 2(15:227'71 411 OPIni Dakota County communities may team up on economic development - TwinCities.com Page 2 of 2 MCCD's direct loan program offers up to $25,000 or less for startup and existing retail and service businesses that cannot secure financing from a traditional bank, Smolund said. The interest rate, which is dependent on use, term and other factors, would not exceed 10 percent. According to MCCD's 2011 lending report, the organization provided nearly $730,000 in direct loans to businesses and leveraged an additional $4.1 million in capital from other sources, including banks, community lending partners and owner equity. The organization helped 30 businesses damaged by the May 2011 tornado in North Minneapolis access business recovery loans to help with building repairs, and it helped another 14 businesses acquire forgivable loans to help offset some of their declines in sales as a result of light-rail construction. Earlier this month, West St. Paul community development director Jim Hartshorn introduced the idea to his city's economic development authority, which is made up of city council members. Hartshorn said the Open to Business program could complement the city's own small-business initiative it is developing with bankers. "I could see a need for this," he said, adding that MCCD's direct loans would carry higher interest rates than the city's loan program. "My thought is there are risky loans and then there are riskier loans, and I would use the MCCD for the more riskier-type startups." Nick Ferraro can be reached at 651-228-2173. Follow him at. littn • //wAxrur txvi n ti P 11M 11 or nlnewslci 20868771/dakota-county-communities 6/19/2012