HomeMy WebLinkAbout09/18/2013 EDA Meetingcity of Apple
Meeting Location: Municipal Center
7100 147th Street West
Apple Valley, Minnesota 55124
NOTICE: The Apple Valley Economic Development Authority will hold a
Special informal meeting at the Municipal Center, on Wednesday,
September 18, 2013, at 4:15 p.m. to consider the items listed in the
following agenda:
SEPTEMBER 18, 2013
ECONOMIC DEVELOPMENT AUTHORITY INFORMAL MEETING
TENTATIVE AGENDA
4:15 P.M.
1. Call to Order.
2. Cedar Avenue Land Use Planning:
a. Overview of BRTOD Guide Plan Completed in January 2013 by the City.
b. Update on METRO Red Line Market and Development Study; Multi-City Study
Underway.
c. Introduction of Phase 11 of the City Guide Plan for the Corridor; Finalizing the
Cedar Corridor Ordinance and Implementing the Design Guide.
3. Central Village West Update.
4. Discuss Board Officers and the Process to fill a Board Vacancy.
5. Economic Development Updates in the City.
6. Other Items.
7. Adjourn.
(Agendas are also available on the City's Internet Web Site http://www.cityofapplevalley.org)
City of Apple 11
TO:
FROM: Kathy Bodmer, Planner
MEETING
DATE: September 18, 2013
SUBJECT: Informal Discussion of Cedar Avenue Land Use Planning
At its August 22, 2013, meeting, the Apple Valley Economic Development Authority considered a
request for approval of a grant agreement and $ 15,000 in matching funds to complete the design
guidelines and ordinance work for the V2-mile area around the BRT station areas on Cedar Avenue.
The EDA requested that additional information be provided on the BRTOD Guide Plan and the next
steps in the planning process. Because a few studies have been done the last couple of years focusing
on the Cedar Avenue corridor, staff thought a quick recap of the studies would be helpful:
1. American Institute of Architects Sustainable Design Assessment Team (August 2011)
• Three day visioning and charrette process with national experts.
• Provided guiding principles for transformation from suburb to compact village
• Land use concepts developed emphasizing "villages," integrated mix of uses in smaller
block pattern
• Next step: fix the Code to create a vital, walkable, mixed-use downtown served by transit.
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MEMO
Community Development
Economic Development Authority Board Members and Executive Director
BRTOD Guide Plan
• General guidance for development and redevelopment within the V2-mile station areas
• Land use concept plans and development pattern concepts created
• Draft Design Guidelines
• Draft BRTOD Ordinance
• Next Step: complete the design guidelines and BRTOD ordinance
3. METRO Red Line Market and Development Study
• Multiple-city project including Lakeville, Apple Valley, Eagan, Bloomington, Hennepin
and Dakota Counties.
• Corridor-wide analysis of markets and station typologies
• High-level market study
• Incorporates land use recommendations from the BRTOD Guide Plan
• Infrastructure recommendations
The grant agreement and requested matching funds from the CDA Redevelopment Incentive
Planning Grant would be used for the following project:
4. BRTOD Phase II Implementation
• Final review of vision and land use guidance.
• Prepare a Comprehensive Plan Amendment.
• Complete the Design Guidelines.
• Establish a BRTOD Zoning District.
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RED LINE MARKET AND DEVELOPMENT STUDY
Open House Materials
METRO Red Line Mar<et and Development Study
Study Purpose
0
O Identify strategies to promote transit-
oriented development at station areas
O Understand the existing character
and the potential real estate market at
each station area
Understand the role of bus rapid
transit (BRT) as a catalyst for
development
Develop station area "typologies"
to help attract and shape transit-
oriented development in the future
Involve a wide range of stakeholders,
including residents, businesses,
developers, foundations, and
historically underserved and
unrepresented populations
Tasks and Timeline
Task 1 Transitway and
Station Character
Task 2. Existing Market
Condition and Potential
Task 3. Station Area
Investment Strategies
Task 4. Public/Private/
Foundation Engagement
Task 5. Implementation Plan
= Public/Stakeholder Workshop
Jan
Feb
Who is Involved?
Staff from the following agencies are
involved in the study:
O City of Apple Valley
O City of Bloomington
O City of Eagan
O City of Lakeville
O Dakota County
O Dakota County Community
Development Agency
O Hennepin County
The consultant team is being led by
Kimley-Horn and Associates, Inc. with
support from Hoisington Koegler Group,
Inc., W-ZHA, and Northland Securities.
Mar
Apr
2013
May
June
• ••
July
Aug
Sept
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TO:
FROM:
MEETING
DATE:
SUBJECT:
City of Apple
Val e
Community Development
Economic Development Board Members and Executive Director
Bruce Nordquist, Community Development Director, AICP
September 18, 2013
Next Steps within Central Village West
MEMO
Background:
The EDA met on April 11, 2013 to discuss:
• Principals for an agreement within the Dakota County CDA for their interest in
developing multi-unit housing in the future on parcels E and F on the attached map.
The attached matrix summarizes progress in developing an agreement.
• EDA interest in acquiring parcels A, B, C and D for office, commercial and vertical
mixed uses sought by the marketplace. A missing element, which staff still awaits, is
the land price the County will determine for the tax forfeited parcels. That
determination may not occur until October but it is believed the cost to acquire will
match existing estimated market value plus the ongoing City interest in collecting the
special assessment obligation.
In accordance with the attached letter from Dakota County, time will be short to act between
an October value determination and a January public sale by the County. Finance Director
Ron Hedberg has prepared a memo to discuss financial aspects in further detail. The
County, by statute, seeks a fair market value return and has no vested interest in the
absence of a buyer at other than the value plus special assessment price. County
representatives have suggested the properties might sit for 3 to 5 years before the estimated
value would be further considered. The City objective is to recover special assessment
obligations and guide desirable development.
2013 City Staff Activities:
Staff has been active in pursuing development of A, B, C and D. This has included the
pursuit of resources, builders, developers, end users, brokers and peer organizations such as
DEED and GREATER MSP. While diligent in staff pursuit, the EDA may consider hiring of an
independent broker by contract with the EDA.
The following is a brief summary of staff actions by category:
1) Resources sought:
• Successfully secured special legislation extending a "jobs bill" tax increment financing
tool for Apple Valley to assist in developing job opportunity in the Central Village and
near AVTS.
• Secured a reprogram of a Livable Community TOD grant of $866,000 to use at parcels
A, B and C to assist in the cost of acquisition tied to a development project that
benefits from transit proximity.
Conducted an initial analysis of eligible public costs to determine if additional public
revenue would be needed for the project. Structured parking was identified as a cost
to serve a high intensity office user and address neighborhood parking demand.
2) Builders/Developers responses:
Staff secured the development parameters and needs of a large employer interested in
doing business in Apple Valley at this location. Staff met with and facilitated independent
bids from three highly qualified builder/developers that would be interested in developing
up to 100,000 sq. ft. of office space with structured parking.
It was determined through the process that there was interest, but an inability to
immediately proceed given long term lending and lease requirements and a wide range of
project costs related to a multi-story building.
3) Brokers expressed interest:
Since May, at least 5 different Brokers and 3 potential end users at the A, B, and C
parcels, have been approached. All like the location and proximity to Grand Stay, AVTS
and the Downtown. An attractive feature are the resources that would assist with
acquisition and could assist with a project design that includes structured parking.
Recommended Action:
Next steps with the available Central Village West parcels is for discussion and
feedback, but no action is planned at the informal meeting.
F 4Y �dy ',4' •
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a01- 8175001
° `'k �•, pr
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P! Ds 01 81750 - 0001 ;"
and 01-03400-020-28
4.8 total acres
RD D 01 -81 "750 - 0:10 -0
!31 365lacres,
CENTRAL VILLAGE WEST PARCEL DATA
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Property Taxation &
Records
Dakota County
Administration Center
1590 Hwy 55
Hastings, MN 55033
om-4nn4o76
Fax 651-438-4399
July 8, 2013
Tom Lavve/i
City of Apple Va|le«Adnm|nistrator
7100 147~`StVV
Apple Valley, MN 55124-7519
Dear Mr. Lawell:
On November 6 2012, the Dakota County Board of Commissioners approved the
classification of tax forfeited parcels that forfeited to the State of Minnesota in
September 2012. TheCitVofAop|eVa|hevrequestodthatOakotaCountvplareaG-
nnonthholdonLheproperdesidentifiedbe|ovvonNovennber2-2Ol2.Theseparce|s
were included in the County Board classification and classified as non-conservation.
On June 6, 2013 the Minnesota Department of Natural Resources deemed the
classification process complete and the parcels identified below eligible for sale.
Based on this determination, Dakota County has concluded that the start of the G-
month hold is June 6, 2013.
Parceb:
01-81750-03'010
81-81750-03-020
01-8175O~01-0I0
|[ there are further questions, please contact nne@tG5l-438'437O.
3in
01-81750-00-011
01-81750-02-010
01-03400-28-020
Amy Koe Lb~Manager
Dakota County PropertyTaxation & Records
Administration Center
I59O Highway 55
Hastings, MN 55033
City of Apple
Valley
TO:
000
0000
00
0000
000
Economic Development Authority, and
Tom Lawell, Executive Director
MEMO
Finance Department
FROM: Ron Hedberg, Finance Director
DATE: September 13, 2013
SUBJECT: Information Related to Special Assessments on Tax Forfeit Parcels in Central
Village West
Introduction
There are six parcels in the Central Village West area that are currently working through the tax
forfeit process, which is being administered by Dakota County. The County Board is at the point
where they will be assigning a market value for the property at their October meeting. Based on
earlier action, the City of Apple Valley and the County CDA expressed interest in obtaining the
parcels. Once the County determines the minimum we will have a short time to decide whether
to move forward on acquiring the parcels. Once the value is set, public agencies have the ability
to either take title to the property for public purposes or have the option to purchase at the
assigned market value if it not to be used for public purpose. Anyone else who purchases the
property through the auction process will need to pay a minimum of the market value assigned.
We understand that the County Board will be assigning the market value at their October
meeting. What the County Auditor has explained; is if the City or CDA do not act to acquire or
purchase the property it would be set for public auction, with the minimum price beginning the
market value set by the county board.
Staff will be walking through and explaining the following data at the EDA meeting showing the
flow of funds related to the tax forfeited properties. Bruce Nordquist also has a memo
introducing the acquisition topic.
Discussion
The following assumptions were used in the discussion.
• If the property is not acquired by a public agency for public purposes, the City may
purchase the property for the value set by the County Board
* If the property is not acquired by a public agency, the parcels will be subject to a public
auction, with the minimum price being the value set by the county board.
* If the property is not sold at auction it will be placed on the county list of parcels
available for purchase, at the minimum value set by the County.
o The county will notify any interested parties of the potential for re-levying of
unspread special assessments.
EDA
Central Village West Delinquent Special Assessments
September 13, 2013
p2
• After three years if the property remains unsold the County Board will review the market
value set for the property and may possibly adjust the price.
• Out of the sale proceeds the County may deduct their administrative costs, then proceeds
are applied to the delinquent special assessments, any remaining excess will then be
distributed to each jurisdiction based on the ratio of their tax rates (the City of Apple
Valley is approximately 43% of the total tax rates)
• Once the property is sold the City of Apple Valley may reassess any unpaid delinquent
assessments and any of the unspread special assessments following the 429 assessment
process.
• The value assumed is the last Taxable Market Value off the tax statement. The county
will not be notifying us of the value to be set until the board meeting on October.
• The City has received a proposal from the CDA, under the proposal the CDA would
acquire two of the parcels (E & F) for no cost and would pay to the City $1,500,000
toward unpaid special assessments.
Below is the previously spread and delinquent special assessments as well as the unspread
special assessments that could be relevied against each of the parcels. Not included in the
unspread S/A Balance would be future interest that would be collected as the special assessments
are amortized and paid.
Map
key
Housing Parcels E 01 81750 011 00
Housing Parcels F 01 03400 020 28
2008 to 2013
- Total
Previously
Spread 12-31-2013
S/A (Prin & Unspread total Potential
Property value Interest) S/A Balance Re- Levy
Commercial A 01 81750 010 03 $ 530,900 $ 189,558.60 $ 203,056.00 $ 392,614.60
Commercial B 01 81750 020 03 598,000 225,487.00 242,134.70 467,621.70
Commercial C 01 81750 010 02 521,400 187,526.30 200,825.35 388,351.65
602,571.90 646,016.05 1,248,587.95
Triangle D 01 81750 010 01 1,111,600 1,134,552.82 1,321,817.05 2,456,369.87
1,062,000 894,162.81
187,400 119,536.97
1,249,400 1,013,699.78
4,011,300 2,750,824.49
1,093,223.21
166,260.15
1,259,483.36
3,227,316.46
1,987,386.02
285,797.12
2,273,183.14
5,978,140.95
EDA
Central Village West Delinquent Special Assessments
September 13, 2013
p3
The CDA is proposing to pay $1,500,000 towards the delinquent and future special assessments
upon acquiring the parcels. The total of the delinquent and future assessments is $2,273,183. The
$1,500,000 would be applied to delinquent assessment in the amount of $616,942 and the
relevied assessments of $883,058, the allocation is based on which assessments are pledged
towards bonds and the remainder would go toward the assessments not pledged to bonds.
A recap of the two parcels interested in by the CDA
SPECIAL ASSESSMENTS Parcel F Parcel E
Delinquent Assessments ('2007 to 2013) $ 119,537 $ 894,163
S/A Payoff Balance 12 -31 -13 166,260 1,093,223
Subtotal 285,797 1,987,386
Amounts received towards S/A
Remaining SjA To cover
Cashflows to the City for the CDA Parcels
CASH FLOWS FOR CITY
Price Paid to Purchase (1) (2)
CDA 'Purchase' all to S/A
Delinquent asmts
CDA Future Asmts Paid
S/A Rec'd
NET CASH FLOWS FOR CITY
Parcel F
Note:
(1) Assumes CDA acquires parcels for zero
(2) City must acquire for no less than value established by county
Parcel E
EDA
Central Village West Delinquent Special Assessments
September 13, 2013
p4
The EDA has the option to purchase four of the tax forfeited parcels (A,B,C &D) for economic
development purposes at the minimum value established by the county. The portion of the purchase price
that exceeds the delinquent assessments would be redistributed to all the taxing jurisdictions in the ratio
of their tax rate, Apple Valley would receive approximately 43% of these excess. The example below
assumes that this excess would be applied to the special assessments related to these parcels.
The total of the delinquent and future assessments is $3,704,958. The purchase price for parcels A,B,C
exceed the delinquent assessments and for parcel D (the triangle) the delinquent assessments exceed the
minimum value. To acquire the parcels the City /EDA would pay the minimum value of $2,761,900, of
this approximately $1,714,172 would be applied to delinquent assessments and would receive $451,000
in redistributed excess. The net cost to the City /EDA would be $596,728. If the EDA purchases the
property the intent would be to remarket the parcels and the future assessments would be relevied as part
of the resale.
A recap of the four parcels potentially acquired by the EDA.
SPECIAL ASSESSMENTS Parcel D Parcel C Parcel B Parcel A
Delinquent. Assessments ('2007 to
2013) $1,134,553 $187,526 $ 225,487 $ 189,559
S/A Payoff Balance 12 -31 -13 1,321,817 200,825 242,135 203,056
Subtotal 2,456,370 388,351 467,622 392,615
Amounts received towards. S/A 1,111,600 187,526
Remaining S/A To cover
Cashflows related to the EDA four parcels
CASH FLOWS FOR CITY
Price Paid to Purchase (1) (2)
Redistribution of Excess proceeds
Delinquent asmts
S/A Rec'd
1,344,770
Parcel. D Parcel C.
200,825
$(1,111,600) $ (521,400) $ (598,000) $ (530,900)
1,111,600 187,526
1,111,600 187,526
NET CASH FLOWS FOR CITY - (189,874)
242,135 203,056
Parcel B Parcel A
144,000 160,000 147,000
225,487 189,559
225,487 189,559
(212,513) (194,341)
Staff will be walking the EDA through the cashflows related to the Central Village West parcels and
explore other options. We have not received the minimum values set by the County yet but once we
receive the values and if the CDA or the EDA are interested in the acquiring the parcels they will need to
act by early December.
City of Apple
Val ev
TO: Apple Valley Economic Development Authority Board of Directors
FROM: Tom Lawell, EDA Executive Director
DATE: September 18, 2013
SUBJECT: Discuss Officer Appointments for the Balance of 2013
DISCUSSION:
President Vacant
Vice-President Thomas Goodwin
Secretary Pamela J. Gackstetter
Treasurer Clint Hooppaw
Assistant Treasurer Pamela J. Gackstetter
RECOMMENDED ACTION:
MEMO
Apple Valley Economic Development Authority
As the EDA Board is aware, Larry Severson recently resigned his position with the EDA
leaving the office of President vacant. At our September 18, 2013 meeting, the Board
should discuss how best to fill this vacancy. Vice-President Tom Goodwin has indicated
his desire to serve as President. Should he be selected, the Board would then need to
fill the vacant Vice-President position. Current board officers include:
In that the September 18, 2013 meeting is an informal workshop meeting, no formal
action to appoint officers can be taken at this meeting. Instead, it is suggested that a
formal EDA meeting be called for September 26, 2013 immediately prior to the regularly
scheduled City Council meeting that evening.
Mr. Severson's resignation leaves a vacancy on the EDA Board. In order to bring the
EDA back to its established size of seven members, the City Council (not the EDA
Board) will need to make a formal appointment to the EDA Board. This too could occur
on September 26, 2013 on the City Council agenda.
No formal action can occur at our September 18, 2013 EDA meeting. The Board should
discuss officer appointments for the balance of 2013. Board members should also
indicate their availability to meet in advance of the September 26, 2013 City Council
meeting.
CITY OF APPLE VALLEY
ORDER FOR SPECIAL BOARD MEETING
NOTICE IS HEREBY GIVEN that the Apple Valley Economic Development
Authority (EDA), will hold a special informal Board meeting at Apple Valley
Municipal Center, 7100 - 147th Street W., on Wednesday, the 18th day of September,
2013, at 4:15 p.m., to discuss Cedar Ave planning, Central Village update, officers,
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 12th day of September, 2013.
Thomas Goodwin, Vice-President
Clint Hooppaw, Commissioner
d, Commissioner