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HomeMy WebLinkAbout12/27/2012 EDA Meeting6000 O*00 0 City of Apple ll Valley NOTICE: The Apple Valley Economic Development Authority will hold a Special meeting at the Municipal Center, on Thursday, December 27, 2012, at 7:00 p.m. to consider the items listed in the following agenda: Information Items: 7. Project Updates: 8. Other Items 9. Adjourn ECONOMIC DEVELOPMENT AUTHORITY MEETING TENTATIVE AGENDA DECEMBER 27, 2012 — 7:00 P.M. (immediately following the City Council meeting) 1. Call to Order. 2. Approval of Agenda. 3. Approval of Minutes of November 20, 2012. 4. Public Hearing for Business Subsidy Agreements with IMH, LLC; Parkside Village Development. 5. Authorization Reimbursement, Time Square 6. Authorization to Prepare Agreements to Consider Sale of Remnant Parcel (Agendas are also available on the City's Internet Web Site http://www.cityofapplevalley.org) ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota November 20, 2012 Minutes of the special meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held November 20, 2012, at 7:00 o'clock p.m., at Apple Valley Municipal Center. PRESENT: President Severson, Commissioners Bergman, Goodwin, Grendahl, Hamann- Roland, Hooppaw and Melander. 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 9:18 p.m. by President Severson. EDA 3 MOTION: of Hamann-Roland, seconded by Hooppaw, approving the agenda. Ayes - 7 - Nays - 0. APPROVAL OF MINUTES MOTION: of Hamann-Roland, seconded by Goodwin, approving the minutes of the special meeting of November 8, 2012, as written. Ayes - 6 - Nays — 0 — Abstain — 1 (Melander). REIMBURSEMENT FOR BLUEWATER AQUATIC CENTER, 5885 — 149TH STREET W. MOTION: of Bergman, seconded by Hamann-Roland, adopting Resolution No. EDA 12-14 approving reimbursement request for Bluewater Aquatic Center in the amount of $149,900.00 for substantial building improvements. Ayes - 7 — Nays - 0. AMENDMENTS TO MASTER DEVELOPMENT PROGRAM, THE ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 15 AND APPROVING THE TAX INCREMENT FINANCING PLAN THEREFOR. Finance Director Ron Hedberg provided an overview to consider amendments to the Master Development District to include a new district, TIF District #15, Parkside Village. He stated that, earlier in the evening, the City Council held a public hearing, modified and established the new district. Economic Development Authority City of Apple Valley Dakota County, Minnesota November 20, 2012 Page 2 Discussion followed. MOTION: of Hooppaw, seconded by Goodwin, adopting Resolution No. EDA-12--15, approving amendments to Master Development Program for Master Development District, the establishment of Tax Increment Financing District No. 15 and approving the Tax Increment Financing Plan therefor. Ayes - 6 - Nays — 1 — (Grendahl). PROJECT UPDATES Community Development Director Bruce Nordquist conveyed a message from Jim Wise, Wise Swim School, who was on site earlier but had another commitment. Mr. Wise wished to thank the EDA for the business support given to him for Bluewater Aquatic Center. ADJOURNMENT MOTION: of Grendahl, seconded by Hamann-Roland, to adjourn. Ayes - 7 - Nays - 0. The meeting was adjourned at 9:42 p.m. Respectfully Submitted, Murphy, Department A .istant Approved by the Apple Valley Economic Development Authority on *0* *000 *000* 0000 *0* City of Appl Va e ilev SUBJECT: Consideration of Business Subsidy for Parkside Village MEMO Community Development TO: Economic Development President, Board Members, and Executive Director FROM: Kathy Bodmer, Associate City Planner MEETING DATE: December 27, 2012 ED q At its November 8, 2012, meeting, the Apple Valley EDA set a public hearing to consider a business subsidy for IMH LLC. The public hearing notice was sent to the City's official newspaper indicating that the Business Subsidy would be discussed at the December 27, 2012, EDA meeting. However, the City Attorney, City's Bond Counsel and petitioner's attorney continue to negotiate the terms of the TIF agreements and development agreements. As a result, the Business Subsidy is not ready to be discussed at the meeting of the 27th. Recommended Action: The City Attorney, City's Bond Counsel and petitioner's attorney will meet on December 27, 2012, to discuss the status of the agreements and whether the developer will be ready to move the project forward at the January 8, 2013, meeting. At the December 27, 2012, EDA meeting, staff will recommend that the EDA take one of two actions, depending upon the outcome of the attorneys' meeting: 1. Open the public hearing and continue the public hearing to the January 8, 2013, meeting. or 2. Cancel the public hearing. The EDA would set a new public hearing and re-advertise the public hearing for a future date. PUBLIC NOTICE NOTICE OF PUBLIC HEARING A PROPOSED POSED BUSINESS,SUBSIDY IN THE CITY OF APPLE VALLEY NOTICE IS HEREBY GIVEN that the fipple Valley Economic Development Authority vvillh hearing at the Municipal 7100 147th Street W., on Thursday, December 27, '012, at 7:00 p.m or as soon thereafter as 3°ssible' to consider business subsidy pursuant to Minnesota a ta Statutes Sections 116J.993 to 116J.995. The proposed busi- - less subsidy is for IMH Special Asset NT 175 - AVN, LLC, an Arizona Limited ty Company, the beneficiary, for the pur- poses of n g construction jobs through the development of multi-family housing project located east of Galaxie Avenue and iorth of 153rd Street W. Specific terms of the proposed business subsidy are detailed n a draft business subsidy agreement Detween Apple Valley Economic Develop- ment Authority and the beneficiary, a copy of which is available for review at the Apple Valley Municipal Center, Community Devel- opment Department. NOTICE IS FURTHER GIVEN that all nterested parties will be given an opportu- iity to be heard at the time and place of the DUiDiiC hearing. NOTICE IS FURTHER GIVEN that if you are a resident or owner of taxable property n the City of Apple Valley, you may file a written complaint with the Apple Valley Economic Development Authority if the 4pple Valley Economic Development 4uthority fails to comply with Minnesota Statutes Sections 116J.993 to 116J.995, and that no action may be filed against the 4pple 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. /s/ Pamela J. Gackstetter Pamela J. Gackstetter, EDA Secretary 3238503 12/7/12 Tad Johnson, being duly sworn on oath says that he is the managing editor of the newspaper(s) known as Sun Thisweek Apple Valley/Rosemount, and has full knowledge of the facts which are stated below: (A) The newspaper(s) has/have complied with all of the requirements constituting qualifications as a legal newspaper(s), as provided by Minnesota Statue 331A.02, 331A.07 and other applicable laws, as amended. (B) The printed legal notice, which is attached was cut from the columns of said newspaper(s) and was printed and published once a week for one week; it was first published on Friday, the 7th day of December, 2012, and was therefore printed and published on every Friday to and including Friday, the 7th day of December, 2012, and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is hereby acknowledged as being the size and kind of type used in the composition and publication of the notice Subscribed and sworn to before me on this 7th day of December, 2012 AFFIDAVIT OF PUBLICATION STATE OF MINNESOTA ) COUNTY OF DAKOTA SS abcdefghijklmnopqrstuvwxyz Managing Editor Puthe-h,* o mv Comm'ssOrt Expres Jan :31, 2014 NOTICE OF PUBLIC HEARING 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 Thursday, December 27, 2012, at 7:00 p.m., or as soon thereafter as possible, to consider a business subsidy pursuant to Minnesota Statutes Sections 116J.993 to 116J.995. The proposed business subsidy is for IMH Special Asset NT 175 — AVN, LLC, an Arizona Limited Liability Company, the beneficiary, for the purposes of creating construction jobs through the development of multi-family housing project located east of Galaxie Avenue and north of 153 Street W. Specific terms of the proposed business subsidy are detailed in a draft business subsidy agreement between Apple Valley Economic Development Authority and the beneficiary, a copy of which is available for review at the Apple Valley Municipal Center, Community Development Department. NOTICE IS FURTHER GIVEN that all interested parties will be given an opportunity to be heard at the time and place of the public hearing. NOTICE IS FURTHER GIVEN that if you are a resident or owner of taxable property in the City of Apple Valley, you may file a written complaint with the Apple Valley Economic Development Authority if the Apple Valley Economic Development Authority fails to comply with Minnesota Statutes Sections 116J.993 to 116J.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. 0 PO /113t 0_ Pamela J. Ga kstetter, EDA Secretary City of Apple Valley TO: President and Board Members of the Economic Development Authority, Executive Director FROM: Bruce Nordquist, Community Development Director Margaret Dykes, Associate City Planner MEETING DATE: December 27, 2012 E bA MEMO Community Development Department SUBJECT: Reimbursement to Time Square Shopping Center II, LLP for Substantial Building Improvements at Time Square Shopping Center 7525 — 148 St. W., 7530-149 St. W, and 7540-64 149 St. W. Discussion On June 14, 2012, the Apple Valley Economic Development Authority ("EDA") took the following actions related to Time Square Shopping Center: • It approved a Business Subsidy Agreement with the property owner of the shopping center to provide financial support in the amount of $157,400 for substantial site improvements. The Agreement required that at least 15 jobs be created that paid an average of $30 per hour (wages and benefits). The project created 32 construction jobs; 20 of the jobs paid an average of $36 per hour. 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 were to be completed by December 31, 2012. • It also approved a Business Assistance Agreement with the property owner to pass through grant funds in the amount of $78,700 received from the Dakota County Community Development Agency ("CDA") for exterior renovations. The grant required a 2:1 match of funds from the property owner; the EDA's funds did not count towards the match. The CDA has authorized the payment of the funds subject to approval by the EDA. The following site improvements were completed with the combination of funds and the owner's contribution: O Completed removal and replacement of north parking lot and area in front of TCF Bank and alley behind the South building. Added bituminous wear coat, compacted to average 2.5 inches. Patched areas and seal coated parking lot. Removed and patched concrete islands. * Constructed dumpster enclosures on north side of the North building. Enclosures constructed of cedar with steel frame. Includes footings, and 3 steel bollards * Excavated and installed 888 sq. ft. of concrete sidewalk from North building to Cedar Avenue frontage road. Includes removal of planter boxes and debris, installation of black dirt and sod, and permit costs • Excavated, installed of landscaping, bedding and sod for pedestrian plazas at North building • Power washed and painted rear side of North building • Installed brick veneer to 24 existing steel columns. Installed steel bollards at north parking lot to shield existing sidewalk. • Installed 13-2'x2' piers with cement caps and black wrought iron fencing for three pedestrian plaza areas at north building. • Installed three wood pergolas with 24 cement columns, bases and capitals for three pedestrian plaza areas at North building • Installed 6 steel tables (three are ADA compliant), 21 steel chairs and 6 steel benches (all permanent) for pedestrian plazas at North building. Installed six electrical outlets for decorative pergola lighting. The attached sources and uses spreadsheet shows how the funds were utilized. The EDA's funds were used to support the reconstruction of the parking lot, the installation of bollards in the parking lot, and the installation of brick veneer on the existing steel support columns. The CDA's funds were used to support the parking lot and the pedestrian trail from the building to Glenda Avenue. The property owner's funds of $202,549 were used for the construction of the dumpster enclosures, painting the building, and the construction of the three pedestrian plazas and landscaping. The Building Inspections Division has reviewed the work and has no issues. The Finance Director has reviewed the request and the invoices, and found them to be in order. The City Attorney is satisfied that the requirements of the Business Subsidy Agreement have been met. Recommended Action: If the EDA concurs, staff is recommending the following motions: • Adopt the draft resolution approving the reimbursement of $157,400 to Time Square Shopping Center II, LLP for the completion of substantial construction costs at 7525 — 148 St. W., 7530-149 St. W, and 7540-64 149 St. W. as listed in the approved Business Subsidy Agreement dated June 14, 2012. • Adopt the draft resolution approving the reimbursement of $78,700 to Time Square Shopping Center II, LLP for the completion of site improvements at 7525 — 148 St. W., 7530-149 St. W, and 7540-64 149 St. W. as listed in the approved Business Assistance Agreement dated June 14, 2012. 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 3. Sources and Uses Spreadsheet 5. Building/Site Photos 2. Reimbursement Request Form 4. Building Inspections Report 2 APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA-12- A RESOLUTION AUTHORIZING THE MAKING OF REIMBURSEMENT TO TIME SQUARE SHOPPING CENTER II, LLP 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 Time Square Shopping Center 11, LLP (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 Lots 1, 3, and 4, Block 1, Levine Subdivision No. 2 (7525 — 148 St. W, 7530 — 149 St. W., and 7540-64 — 149 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 complete removal and replacement and North parking and portions of the South parking lot; milling, overlying and spot repairing the parking lot between the North and South buildings; construction of three pedestrian plaza areas at the North building; and other improvements as shown on the plans submitted to the City on June 29, 2012. 4. That on June 27, 2012, the EDA and the Developer entered into a Business Subsidy Agreement and authorized the use of $157,400 for the substantial building improvements listed in the Business Subsidy Agreement. 5. That the Developer has completed the building improvements, received a Certificate of Occupancy from the Building Official, and submitted proof of payment for the work completed, which have been reviewed by the City Finance Director and found to be in order. 6. That 20 construction jobs with an average wage of $36 per hour were created as a result of the project. 7. That the Developer is now requesting reimbursement in the amount of $157,400. NOW, THEREFORE, the EDA hereby authorizes the reimbursement of $157,400 to the Developer pursuant to the Business Subsidy Agreement. DRAFT ATTEST: ADOPTED this 27 day of December, 2012. Pamela J. Gackstetter, Secretary Larry S. Severson, President APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA-12- A RESOLUTION AUTHORIZING THE MAKING OF REIMBURSEMENT TO TIME SQUARE SHOPPING CENTER II, LLP WHEREAS, the Board of Commissioners of the Apple Valley Economic Development Authority ("EDA") finds as follows: 1. The Apple Valley Economic Development Authority (the "EDA") and the City of Apple Valley, Minnesota (the "City") have adopted a Master Development Program in an effort to encourage development and redevelopment of certain designated areas within the City, which program, plans and districts have been amended from time to time. 2. The City received a Redevelopment Incentive Grant (the "Grant") from the Dakota County Community Development Agency ("CDA") in 2010 in the amount of $78,700 for site improvements at Time Square Shopping Center (the "Property"), located at 7525-148 Street W., and 7530 and 7540-149 Street W. and legally described as Lots 1, 3, and 4, Block 1, Levine Subdivision No. 2. 3. The Grant allowed Time Square Shopping Center II, LLP (the "Owner") to make certain improvements including the repair and restriping of the existing 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 (the "Project"). 4. The City and the CDA entered into a Grant Agreement on February 9, 2010. The City authorized the transfer of the Grant to the EDA on June 14, 2012. The EDA entered into a Business Assistance with the Owner on June 14, 2012. 5. The Owner has completed the Project, which has been reviewed by the Building Inspections Division and found to be in compliant with all applicable City Codes and standards. 6. The Owner has submitted invoices and proof of payment, which have been reviewed by the Finance Director and found to be in order. 7. The Owner is requesting and has requested reimbursement from the EDA in the amount of $78,700. 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" ,•% City of Apple Valley President and Board Members of the Economic Development Authority, Executive Director FROM: Margaret Dykes, Associate City Planner MEETING DATE: December 27, 2012 TO: SUBJECT: Outlot C, Valley Business Park Recommended Action: Direct staff to begin negotiations with the Melbys for their acquisition of Outlot C, Valley Business Park. E MEMO Community Development Department In 1994, the Apple Valley Economic Development Authority (EDA) acquired a 28-acre site generally located northwest of the intersection of Pilot Knob and County Road 42 from L.G.S. Concord/Citizens Utility to facilitate the creation of an industrial business park. This 28-acre parcel, now called Valley Business Park, was platted in 1999 and is zoned "BP" (Business Park). The Valley Business Park property is entirely developed, with the exception of one lot which is still vacant. Immediately to the south of Valley Business Park is the Melby farmstead, which is a 3.54-acre unplatted parcel. When Valley Business Park was platted, a 0.18-acre outlot, Outlot C, was created to provide the Melby property with access to Energy Way. The Melby property also has access to County Road 42, but will likely lose that access when the property is developed for another use. The Melby property is guided in the Comprehensive Plan for Industrial uses, but is currently zoned for agricultural purposes. When the Valley Business Park plat was approved, it was with the understanding that the Melby property would eventually be incorporated into the business park and be rezoned as "BP". The Melby property is now on the market, and the property owner is now requesting the EDA work with them to acquire Outlot C so that their property is more attractive to a potential user. The property owners have not presented an offer for the acquisition of the property. The City Attorney has determined that no appraisal is needed. Staff is requesting the EDA direct it to begin negotiations with the Melbys for their acquisition of Outlot C. map • a t , Dakota Coun 1 4a: -.14 simosagii0p; • 1.111:Vg V.-4W '1 NrY Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification, Dakota County assumes no legal responsibility for the information contained in this data Map Scale 1 inch = 90 feet 12/4/2012 Property Card Owner Information Fee Owner APPLE VALLEY ECONOMIC DEV AUTHORITY Mailing Address CEDAR AVE APPLE VALLEY MN 55124-8546 Building Type Building Style Frame Multiple Buildings 196 Property Address Address Municipality APPLE VALLEY Last Qualified Sale Sale Value $0.00 Uses EXEMPT Foundation Sq Ft Finished Sq Ft Garage Sq Ft Watershed District VERMILLION RIVER Parcel ID Number 01-81100-00-030 Parcel Information Total Acres 0.18 RAN Acres Water Acres Plat Lot and Block OUTLOT Tax Description 2012 Building Characteristics (payable 2013 Year Built 0 Bedroonis Miscellaneous Information Homestead Green Acres NON HOMESTEAD Assessor Valuation Taxable $0.00 $0.00 $0.00 2012 Land Values (payable 2013) 2012 Building Values (payable 2013) 2012 Total Values (payable 2013) 2011 Total Values (payable 2012) VALLEY BUSINESS PARK Bathrooms $0.00 Net Tax (payable 2012) $0.00 Property Tax Information Special Assessments (2012) $0.00 Total Tax (& Assessments (2012) $0.00 Disclaimer: Map and parcel data are believed to be accurate, but accuracy is- not guaranteed, This is not a legal document and should not be sui)stituted for a title search, appraisal, survey, or for zoning verification, Monday, December 03, 2012 Dakota County, MN Page 1 of 1 Estimated $9,200.00 $0.00 $9,200.00 $9,700.00 November 20, 2012 Economic Development Authority Apple Valley, MN 55124 RE: Melby Property - 5751 150th St. W. Apple valley, MN Dear EDA, This letter is a formal request to work with the EDA to try and acquire the property that abuts our family property listed above (see enclosed tax parcel). We believe that when the property is developed the county will be requesting us to give up our access onto County Road 42 for safety and traffic concerns. This will make our property land locked and will not have good access for future development. The property tax info enclosed shows a driveway that crosses this property and has been used for years to access our parcel from Energy Way. It is our belief due to set back requirements, etc... that this property would not be usable land for the EDA and would make sense to be part of the Melby property for future development. It is our hope to resolve this issue so we can have a saleable property that will conform to the city and county's long term planning process. Your consideration in this matter is greatly appreciated! If you have any questions or concerns, please direct them to Eric Ruud at Top Notch Properties & Realty Services. His number is 612-2454382. If you need to meet with us or contact me directly, please call 651-463-4760. Sincerely, 01 Deborah Juenke (Melby) hp,i/ Dakota County Real Estate Inquiry 01-81100-030-00 ner APPLE VALLEY ECONOMIC DEV AUTHORITY r, a-- N Details C u t Plat ro al t Data Updated 3/17/2011. t Map navigation Select option and click ,rn map: Zoom In Zoom Out Pan i..identry 1 Big Map PLEASE READ This application was developed by the arty in cooperation with afiel troqraun Neighborhood G 7 <' Click on the Dakota County Logo above to return to the home page Legend Real. Estate Parcels 0 Parcels EJ Common. Ownership Water RAN. Easement 0 Dedicated Rfult Tax Parcels Market Value Recent Sales Year Built 'Air Photo Torrens Refresh Map Choose ONE search method, enter criteria, and click Go or hit enter key. House #: PIN: OR Birds Eye Departments Page 1 of 1 'Go Go CITY OF APPLE VALLEY ORDER FOR SPECIAL BOARD MEETING I, Larry S. Severson, President of the Apple Valley Economic Development Authority (EDA), hereby order that a special Board meeting of the EDA be held at Apple Valley Municipal Center, 7100 - 147th Street W., on Thursday, the 27th day of December, 2012, at 7:00 p.m., immediately following the City Council meeting, to hold a public hearing for business subsidy agreement with IMH, LLC, Parkside Village Development, reimbursement authorization for Time Square, authorization to prepare agreements to consider sale of remnant parcel, and provide other project updates. In accordance with this order, the Secretary is requested to provide notice of this meeting following the requirements of the By-laws. DATED this 21st day of December, 2012. Larry son, President