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HomeMy WebLinkAboutEDA Packet - 01-26-23 M eeting L ocation: M unicipal Center 7100 147th Street West Apple Valley, M innesota 55124 January 26, 2023 EC O N O MIC D EVELO P MEN T A UT HO RIT Y REG ULA R MEET IN G T EN TAT IVE A G EN D A 6:00 P M 1.Call to Order 2.Approve Agenda 3.Approve Consent Agenda Items Consent Agenda Items are considered routine and will be enacted with a single motion, without discussion, unless a commissioner or citizen requests to have any item separately considered. It will then be moved to the regular agenda for consideration. A.Approve Minutes of May 26, 2022, Regular Meeting B.Approve 2023 Meeting C alendar 4.Regular Agenda Items A.Adopt Resolution Approving 2023 Board Officers B.Adopt Resolution Approving 2023 ED A Budget 5.Staff Updates 6.Adjourn Regular meetings are broadcast, live, on C harter C ommunications C able C hannel 180 and on the C ity's website at www.applevalleymn.gov I T E M: 3.A. E D A ME E T I NG D AT E :J anuary 26, 2023 S E C T I O N:Consent A genda Description: A pprove Minutes of May 26, 2022, Regular Meeting S taff Contact: B reanna Vincent, Department Assistant Department / Division: Community Development Department AC T I O N RE Q UE S T E D: Approve minutes of regular meeting on May 26, 2022. S UM M ARY: T he minutes of the Economic Development Authority regular meeting is attached for your review and approval. B AC K G RO UND: State statute requires the creation and preservation of meeting minutes which document the official actions and proceedings of public governing bodies. B UD G E T I M PAC T: N/A AT TAC HM E NT S : Minutes ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota May 26, 2022 Minutes of the Regular Meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held May 26, 2022, at 6:15 p.m., at Apple Valley Municipal Center. PRESENT: Vice President Ruth Grendahl, Commissioners Clint Hooppaw, Tom Goodwin, John Bergman, Ken Johnson, and Jodi Kurtz ABSENT: Tom Melander City staff members present: City Administrator Tom Lawell, Community Development Director Bruce Nordquist, Finance Director Ron Hedberg, City Attorney Michael Dougherty, and Department Assistant Breanna Vincent APPROVAL OF AGENDA Vice President Grendahl asked staff if there were any changes to the agenda. – None. MOTION: of Goodwin, seconded by Hooppaw, approving the agenda. Ayes - 6 - Nays - 0. CONSENT AGENDA MOTION: of Hooppaw, seconded by Goodwin approving the minutes of the meeting on January 27, 2022. Ayes – 6 – Nays – 0. REGULAR AGENDA A. Authorize EDA Funding in Partnership with Time Square and Three Adjacent Businesses to Address Storm Water Concerns Community Development Director Nordquist provided a brief presentation. MOTION: of Hooppaw, seconded by Goodwin, to authorize EDA funding in partnership with Time Square and three adjacent business to address storm water concerns. Ayes – 6 - Nays – 0. Economic Development Authority City of Apple Valley Dakota County, Minnesota May 26, 2022 Page 2 STAFF UPDATES City Administrator Tom Lawell noted that Community Development Director Bruce Nordquist will be retiring effective August 31, 2022. ADJOURNMENT MOTION: by Bergman, seconded by Goodwin, to adjourn at 6:34 p.m. Respectfully Submitted, Breanna Vincent, Department Assistant Approved by the Apple Valley Economic Development Authority on January 26, 2023 Thomas O. Melander, President I T E M: 3.B. E D A ME E T I NG D AT E :J anuary 26, 2023 S E C T I O N:Consent A genda Description: A pprove 2023 Meeting Calendar S taff Contact: B reanna Vincent, Department Assistant Department / Division: Community Development Department AC T I O N RE Q UE S T E D: Motion to approve the 2023 meeting calendar. S UM M ARY: Meetings are held on the fourth T hursday of every other month at 6:00 p.m. at the Apple Valley Municipal Center, 7100 - 147th Street West. T hursday, J anuary 26, 2023 T hursday, March 23, 2023 T hursday, May 25, 2023 T hursday, J uly 27, 2023 T hursday, September 28, 2023 T hursday, December 28, 2023 T hursday, J anuary 25, 2024 B AC K G RO UND: N/A B UD G E T I M PAC T: N/A I T E M: 4.A. E D A ME E T I NG D AT E :J anuary 26, 2023 S E C T I O N:Regular A genda Description: A dopt Resolution A pproving 2023 Board Officers S taff Contact: B reanna Vincent, Department Assistant Department / Division: Community Development Department AC T I O N RE Q UE S T E D: Motion adopting the resolution appointing 2023 officers of the Economic Development Authority. S UM M ARY: T he resolution organizing the Economic Development Authority provides that the offices of President, Vice President, and Treasurer be elected annually. T he appointments remain in effect until the Board elects new officers. At the meeting of the Economic Development Authority held on J anuary 27, 2022, the following officers were appointed: President: T homas Melander Vice-President: Ruth Grendahl Secretary: Pamela J . Gackstetter Treasurer: J ohn Bergman Assistant Treasurer: Pamela J . Gackstetter A draft resolution is attached, with blanks to be completed, that can be adopted to appoint the 2022 officers. B AC K G RO UND: N/A B UD G E T I M PAC T: N/A AT TAC HM E NT S : Resolution APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA-23-01 A RESOLUTION APPOINTING 2023 OFFICERS FOR THE APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the Board of the Commissioners of the Apple Valley Economic Development Authority has heretofore adopted Resolution No. EDA-90-1 which provided for initial organization of the Board and adoption of Bylaws; and WHEREAS, said Resolution specifies that the offices of President, Secretary, and Treasurer shall be elected annually, as required by law; and. WHEREAS, said officers were appointed on January 26, 2023; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Apple Valley Economic Development Authority that it hereby appoints and approves the following officers of the EDA for 2023: President __________________ Vice-President __________________ Secretary Pamela J. Gackstetter Treasurer __________________ Assistant Treasurer Pamela J. Gackstetter ADOPTED this 26th day of January, 2023. , President ATTEST: Pamela J. Gackstetter, Secretary I T E M: 4.B. E D A ME E T I NG D AT E :J anuary 26, 2023 S E C T I O N:Regular A genda Description: A dopt Resolution A pproving 2023 E D A B udget S taff Contact: Ron Hedberg, Finance Director Department / Division: Finance Department AC T I O N RE Q UE S T E D: Adopt resolution approving 2023 ED A budget. S UM M ARY: T he proposed 2023 budget, approved by the C ity Council in their annual budget, includes the Economic Development Operations Fund. T he proposed budget includes the anticipated activities in the coming year. If the need arises to address development opportunities, such as Business Retention, Expansion and Attraction (BREA) activities, future action would be requested to address the need. Enclosed are the pages from the budget document that relate to this fund and its use by the ED A. B AC K G RO UND: T here are two primary uses for the Economic Development Operations Fund: 1. To support the partnership with Dakota C ounty and participating cities in the business support program called “Open to Business”. T he program counsels small business in business plan development, marketing strategies, and business concept to realization best practices that result in a physical location or business expansion. Most often, small amounts of microgrant start-up financing is used in combination with local lender resources to facilitate business development and growth. T he program contribution from the Apple Valley ED A is approximately $9,000 for 2023. 2. To support the partnership with Dakota C ounty and other participating cities in responding to regional, national and global market opportunities that attract businesses and workers to the greater Twin C ity area, including Apple Valley. Greater MS P is that regional organization that has been the visible regional economic development authority to retain, expand and attract business. T he program contribution from the Apple Valley ED A is approximately $11,000 for 2023. Possible activity areas in 2023 include: Continue the master planning of the Mixed Business Campus (MBC ) with the identified owner/developer, Rockport LLC; attracting business and development. Respond to site selectors from D EED/G REAT ER MSP. Facilitate job creation from construction and occupancy of commercial, industrial and housing production. Continue Open to Business assistance services with the Dakota C ounty C D A. Continue as a member of G REAT ER MSP, the regional economic development organization with national and global contacts for local business development. Facilitate improvement of properties in the northwest quadrant of C R42 and C edar Avenue. Apply a portion of lease revenues from the Education Building toward ED A business development initiatives when possible. B UD G E T I M PAC T: T he resolution approves the budgeted expenditures of $20,650. AT TAC HM E NT S : Budget Resolution COMPANY DEPARTMENT BUSINESS UNIT ACTIVITY 3210 93 3212 EDA Operations Fund DESCRIPTION OF ACTIVITY The EDA Operations fund was created initially to focus on the activities related to the Valley Business Park development, including a revolving loan program and the development and sale of commercial lots. That activity was completed and the EDA Operations fund assists the EDA in supporting business development opportunities as they arise. MAJOR OBJECTIVES FOR 2023 and 2024  Continue the master planning of the Mixed Business Campus (MBC) with the identified owner/developer, Rockport LLC; attracting business and development.  Respond to site selectors from DEED/GREATER MSP.  Facilitate job creation from construction and occupancy of commercial, industrial and housing production.  Continue Open to Business assistance services with the Dakota County CDA.  Continue as a member of GREATER MSP, the regional economic development organization with national and global contacts for local business development.  Facilitate improvement of properties in the northwest quadrant of CR42 and Cedar Avenue.  Apply a portion of lease revenues from the Education Building toward EDA business development initiatives when possible. IMPACT MEASURES / PERFORMANCE INDICATORS Actual Actual Actual Projected Projected Projected Item 2019 2020 2021 2022 2023 2024 Jobs added (perm. and const.) 500 300 500 500 500 500 Bus. Dev./AV Clients Served 5 9 19 20 20 20 Summary Budget Department 93 EDA Operations Fund 2019 2020 2021 2021 2022 2023 2024 Actual Actual Actual Adopted Adopted Proposed Proposed Revenue: Building Mgmt Fee 50,000 - - 50,000 - - - County Grants- Parking Lot - - - - - - - Grants - MC & Other 500,000 - 353,981 - - - - Admin Fees-Other Funds - 50,000 - - - - - Refunds/Reimbursements - 574,320 - - - - - Other Transfers In - 399,850 - - - - - Investment Earnings 24,868 27,110 (8,286) 400 10,000 10,000 10,000 574,868 1,051,280 345,695 50,400 10,000 10,000 10,000 Expenditures: Salaries & Wages - 108 (54) 550 550 600 600 Emp. Benefits - 8 8 50 50 50 50 Supplies - - - - - - - Contractual Serv. 2,985 - 6,500 8,000 8,500 9,000 9,000 Training/Travel/Dues 10,175 18,800 11,000 11,850 12,100 11,000 11,000 Developer Asstistance 500,000 399,850 353,981 - - - - Capital outlay - - - - - - - Total Expenditure 513,160 418,766 371,435 20,450 21,200 20,650 20,650 Fund Balance Beginning 743,521 805,229 1,437,743 1,437,743 1,467,693 1,467,693 1,456,493 Ending 805,229 1,437,743 1,412,003 1,467,693 1,456,493 1,457,043 1,445,843 2023 & 2024 CAPITAL OUTLAY: None City of Apple Valley Department Expense Summary Budget Years (2023-2024) EDA OPERATIONS Object Account 2019 Actual 2020 Actual 2021 Actual 2021 Council Adopted Original Budget 2022 Council Adopted Original Budget June 2022 YTD Actual 2023 Dept Proposed 2023 Admin Recommend 2024 Dept Proposed 2024 Admin Recommend 6110 - SALARY-REGULAR EMPLOYEES 550 550 600 600 600 600 6112 - SALARY-SEASONAL TEMP 0 108 -54 54 6105 - SALARIES AND WAGES 0 108 -54 550 550 54 600 600 600 600 6138 - MEDICARE 0 2 1 50 50 1 50 50 50 50 6139 - FICA 0 7 3 0 0 3 6141 - PENSIONS-PERA 0 0 4 0 6125 - EMPLOYEE BENEFITS 0 8 8 50 50 4 50 50 50 50 6100 - TOTAL PERSONNEL SERVICES 0 116 -46 600 600 58 650 650 650 650 6235 - CONSULTANT SERVICES 2,985 0 6,500 8,000 8,500 8,100 9,000 9,000 9,000 9,000 6230 - CONTRACTUAL SERVICES 2,985 0 6,500 8,000 8,500 8,100 9,000 9,000 9,000 9,000 6276 - SCHOOLS/CONFERENCES/EXP OTHER 0 0 0 0 0 0 6278 - SUBSISTENCE ALLOWANCE 0 0 0 0 0 0 6280 - DUES & SUBSCRIPTIONS 10,175 18,800 11,000 11,850 12,100 0 12,500 11,000 12,500 11,000 6270 - TRNG/TRAVL/DUES/UNIF 10,175 18,800 11,000 11,850 12,100 0 12,500 11,000 12,500 11,000 6200 - TOTAL OPERATING COSTS 13,160 18,800 17,500 19,850 20,600 8,100 21,500 20,000 21,500 20,000 6397 - DEVELOPER ASSISTANCE 500,000 0 353,981 0 6301 - OTHER EXPENDITURES 500,000 0 353,981 0 6300 - TOTAL OTHER EXPENDITURES 500,000 0 353,981 0 6801 - TOTAL CONSTRUCTION COSTS 0 0 0 0 6800 - TOTAL CONSTRUCTION COSTS 0 0 0 0 513,160 18,916 371,436 20,450 21,200 8,158 22,150 20,650 22,150 20,650 CITY OF APPLE VALLEY 2023 BUDGET ACCOUNT DETAIL DEPT 93: EDA OPERATIONS FUND -3212 COMPANY 3210: EDA OPERATIONS 2021 2022 2022 2023 2023 2024 2024 ACC'T DESCRIPTION COUNCIL COUNCIL YEAR END DEPT ADMIN DEPT ADMIN ADOPTED ADOPTED PROJECTED PROP RECOMMEND PROP RECOMMEND SALARIES 6110 Regular Employees 550 550 550 600 600 600 600 6138 Medicare 50 50 50 50 50 50 50 Total 600 600 600 650 650 650 650 6235 CONSULTANT SERVICES Open to Business 8,000 8,500 8,500 9,000 9,000 9,000 9,000 Total 8,000 8,500 8,500 9,000 9,000 9,000 9,000 6280 DUES & SUBSCRIPTIONS Membership in local chapters of Nordic Chambers of Commerce 1,500 1,500 1,500 - - - - Greater MSP 10,350 10,600 10,600 11,000 11,000 11,000 11,000 Sister City - - - - - - - Total 11,850 12,100 12,100 11,000 11,000 11,000 11,000 Total Net of Personnel 19,850 20,600 20,600 20,000 20,000 20,000 20,000 TOTAL EXPENSES 20,450$ 21,200$ 21,200$ 20,650$ 20,650$ 20,650$ 20,650$ CITY OF APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA 23-___ RESOLUTION APPROVING 2023 PROPOSED BUDGET WHEREAS, the Apple Valley Economic Development Authority has reviewed the proposed 2023 operating budget set forth in this resolution; and WHEREAS, the Economic Development Authority desires to adopt an operating budget for management purposes; and NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Apple Valley Economic Development Authority, Minnesota, that revenue and expenditure budgets for 2023 shall be as included below in this resolution and as supported by the detailed document, as revised. 2023 Revenues: Investment Earnings $10,000 Total Revenues $10,000 Expenditures: Wages & Benefits 650 Consultant Services $9,000 Dues & Subscriptions $11,000 Total Expenditures $20,650 ADOPTED this 26th day of January, 2023, by the Apple Valley Economic Development Authority Board of Commissioners. Thomas O. Melander, President ATTEST: Pamela J. Gackstetter, Secretary