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HomeMy WebLinkAboutEDA Packet - 01-25-24 ••• Meeting Location: Municipal Center Apple II 7100 147th Street West Valley Apple Valley, Minnesota 55124 January 25, 2024 ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING TENTATIVE AGENDA 5:30 PM 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 October 26, 2023, Special Meeting B. Approve 2024 Meeting Calendar C. Time Square Storm Water Agreement 4. Regular Agenda Items A. Adopt Resolution Approving 2024 Board Officers B. Adopt Resolution Approving 2024 EDA Budget C. "Open to Business" Program Joint Powers Agreement Authorize Joint Powers Agreement with Dakota County Community Development Agency D. Review, Discuss and Direct Staff on Potential Sale and Development of EDA Owned Property - 15584 Gaslight Drive E. Review, Discuss and Direct Staff on Potential Development Proposals on City-Owned Lands - 7153 & 7169 152nd Street W. ("866 Site") 5. EDA Items and Communications (For items EDA wishes to discuss) 6. Staff Updates 7. Adjourn Regular meetings are broadcast, live, on Charter Communications Cable Channel 180 and on the City's website at www.applevalleymn.gov • ITEM: 3.A. ••••• • ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Consent Agenda Description: Approve Minutes of October 26, 2023, Special Meeting Staff Contact: Department/ Division: Breanna Vincent, Planning Department Assistant Community Development Department ACTION REQUESTED: Approve minutes of special meeting of October 26, 2023. SUMMARY: The minutes of the special Economic Development Authority meeting are attached for your review and approval. BACKGROUND: State statute requires the creation and preservation of meeting minutes which document the official actions and proceedings of public governing bodies. BUDGET IMPACT: N/A ATTACHMENTS: Minutes ECONOMIC DEVELOPMENT AUTHORITY City of Apple Valley Dakota County, Minnesota October 26, 2023 Minutes of the Special Meeting of the Economic Development Authority of Apple Valley, Dakota County, Minnesota, held October 26, 2023, at 6:30 p.m., at Apple Valley Municipal Center. PRESENT: President Tom Melander, Commissioners Clint Hooppaw, Tom Goodwin, John Bergman, Ruth Grendahl, Ken Johnson, and Jodi Kurtz ABSENT: None City staff members present: City Administrator Tom Lawell, Community Development Director Tim Benetti, Planner/Economic Development Specialist Alex Sharpe, Finance Director Ron Hedberg, City Attorney Michael Dougherty, and Department Assistant Breanna Vincent APPROVAL OF AGENDA President Melander asked staff if there were any changes to the agenda. —None. MOTION: of Grendahl, seconded by Hooppaw, approving the agenda. Ayes - 7 -Nays - 0. CONSENT AGENDA MOTION: of Hooppaw, seconded by Bergman, approving the minutes of the meeting on January 26, 2023. Ayes—7—Nays—O. REGULAR AGENDA A. Adopt Resolution Authorizing Execution of Subordination Agreement (Bigos-Galante, LLC) Finance Director Hedberg provided a brief presentation. Commissioner Johnson asked if this was a new requirement. Finance Director Hedberg stated that this is the first loan/mortgage on the Galante project. A similar action was done in 2017 on the Gabella building. Commissioner Hooppaw said that this is timing and the rates for mortgages are all about when they are filed against the property and since our TIF note existed before the mortgage is taken out currently, that first mortgage lender wants to be in first position and the City is holding that up with our notice. Economic Development Authority City of Apple Valley Dakota County, Minnesota October 26, 2023 Page 2 President Melander stated that this action is just a formality. MOTION: of Goodwin, seconded by Hooppaw, to adopt resolution authorizing execution of Subordination Agreement(Bigos-Galante, LLC). Ayes—7 -Nays—0. B. Adopt Resolution Approving the Amendment of a Loan Agreement Related to the Apple Valley Economic Development Authority's Health Care Facilities Revenue Refunding Bonds (Augustana Health Care Center of Apple Valley Project), Series 2016A and 2016B Finance Director Hedberg provided a brief presentation. MOTION: of Hooppaw, seconded by Bergman, to adopt Resolution Approving the Amendment of a Loan Agreement Related to the Apple Valley Economic Development Authority's Health Care Facilities Revenue Refunding Bonds (Augustana Health Care Center of Apple Valley Project), Series 2016A and 2016B. Ayes-7 -Nays-0. STAFF UPDATES None ADJOURNMENT MOTION: by Grendahl, seconded by Bergman, to adjourn at 6:41 p.m. Respectfully Submitted, p N . Breanna Vincent, Department Assistant Approved by the Apple Valley Economic Development Authority on December 28, 2023 Thomas O. Melander, President • ITEM: 3.B. ••••• • ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Consent Agenda Description: Approve 2024 Meeting Calendar Staff Contact: Department/ Division: Breanna Vincent, Department Assistant Community Development Department ACTION REQUESTED: Motion to approve the 2024 meeting calendar. SUMMARY: Meetings are held on the fourth Thursday of every other month at 6:00 p.m. at the Apple Valley Municipal Center, 7100 - 147th Street West. Thursday, January 25, 2024 Thursday, March 28, 2024 Thursday, May 23, 2024 Thursday, July 25, 2024 Thursday, September 26, 2024 Thursday, December 26, 2024 BACKGROUND: N/A BUDGET IMPACT: N/A • ITEM: 3.C. • •• ••• ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Consent Agenda Description: Time Square Storm Water Agreement Staff Contact: Department/ Division: Alex Sharpe, Al CP, Planning and Economic Dev. Spec. Community Development Department ACTION REQUESTED: Approve Agreement Between Apple Valley Economic Development Authority and TS Shopping Center LLC for Time Square/Granada Avenue Storm Water Management Project. SUMMARY: In May 2022, the Apple Valley Economic Development Authority (EDA) met to discuss the EDA's participation in the correction of storm water drainage issues at the Time Square property that affected three adjacent businesses. The EDA was asked to consider a partial contribution of$33,000 towards a correction of storm water issues. Drainage from Time Square and these adjacent businesses was flooding the rear drive aisle of Time Square causing significant damage and making the area difficult to traverse in the winter and spring. Prior to the EDA's discussion, City staff facilitated several meetings with the former owner of Time Square and the surrounding properties could not come to an agreement on how to finance the corrections required. After applying for outside funding through the CDA, staff brought forward a proposed project allocation for the EDA's consideration. At the time, it was unclear whether the project would be a public or private project. It was anticipated that a public project may be necessary due to the number of property owners involved and some property owner's desire to see project costs assessed to individual properties while others would see to pay project costs up front. After review of the issue, and number of properties involved and the impacts to a key commercial center in the community, the EDA chose to allocate $33,000 in TIF funds from decertified Tax Increment District #7, which when active included these parcels. The EDA further directed staff and the City Attorney to coordinate and begin work on any agreements required for the project to proceed with all attorney and engineering time to be covered through the EDA's allocation. The EDA's action on this matter helped spur the subsequent sale of the Time Square properties in September of 2022 to Mid-America Real Estate - Minnesota, LLC, the owner of TS Shopping Center, LLC, which is the listed property owner. Staff continued discussing storm water correction with the new property owners and found a strong preference for a private vs. public project process. The public process was largely sought to ensure surrounding property owners would be receptive to participate. A public process would be led by City staff; and due to the complexity of agreements the $33,000 allocation was anticipated to primarily cover the design, review and creation of agreements by City staff and the City Attorney. The original estimate of this project was approximately $100,000, of which the EDA was anticipated to cover approximately one-third (1/3) of the project costs. A private project would be led by the new property owners who would work directly with surrounding properties for any participation. The City review would occur through the building permit process and all staff review time would is covered through permit fees. Additionally, the agreement is with a single landowner to ensure compliance, thus reducing attorney fees. Staff preferred a private project as the process was significantly easier. The new property owner chose to proceed with the private project, installing a storm water pipe in the fall of 2023. The City reviewed and approved the plans, has inspected the project, and has provided all required documentation. Simultaneously, the City Attorney drafted the attached agreement for the installation and maintenance of the new storm line. The agreement states that all attorney fees for the review of this project and the drafting of the agreement to be covered by the EDA's allocation, with remaining funds to be distributed to the property owner. The agreement further requires that the property owner maintain the storm line in accordance with a public project. The property owner has executed the agreement, and the EDA has been requested to approve the agreement to allow the distribution of remaining funds once the final attorney bills are completed. BACKGROUND: Attached to this staff report is the staff memo from the EDA's meeting in May of 2022. This memo provides additional context on the history of the storm water issue and provides context on the scope of the project. A map attached to this memo created by the City Engineer identifies the number of properties that contributed storm water that flowed into the rear drive aisle. As stated previously, staff sought to facilitate correction of the storm water issue with the surrounding property owners. Upon review, staff found that despite there being four "business owners" in the area, there were actually 8-9 property owners. Several of the surrounding properties were condominiums, sometimes with multiple owners. This further complicated a public project process as agreements and preferred payments would need to be established for each property owner. This complexity would likely cause delays in launching the project as agreements with all property owners would be required prior to the City Engineer beginning design work. The City Engineer has reviewed the project, and it should address storm water concerns. BUDGET IMPACT: The funds are being allocated from decertified TIF District #7 and are an eligible expense to the district. ATTACHMENTS: Agreement Plan Set Memo AGREEMENT BETWEEN APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY AND TS SHOPPING CENTER LLC FOR TIME SQUARE/GRANADA AVENUE STORM WATER MANAGEMENT PROJECT This Contribution Agreement("Agreement")is made by and between TS Shopping Center LLC, a Minnesota limited liability company (the "Developer"), and the Apple Valley Economic Development Authority.A body corporate and politic organized and existing under the laws of the State of Minnesota (the "EDA"). The Developer and the EDA are collectively referred to herein as the "Parties." WHEREAS, the Developer, or its successor or assign, intends to develop real property legally described as Lot 1,Block 1,Levine Subdivision No.2,Dakota County, State of Minnesota, according to the recorded plat thereof(the "Property"); and WHEREAS, development of the Property will include the construction of a private storm water extension and facilities (collectively "Improvement") within and along the northerly boundary of the Property to serve the Property and those adjacent properties legally described on Exhibit A, attached hereto and incorporated by reference; and WHEREAS, the Developer shall design and prepare plans and specifications for the Improvement that comply with City of Apple Valley(the"City")standards at the Developer's sole cost and expense("Plans and Specifications"),which the City shall review as a condition to issuing a building permit for the Improvement; and WHEREAS, the Developer shall construct the Improvement to connect to the City's existing storm sewer located within the drainage and utility easement at the location identified in the Plans and Specifications; and WHEREAS,the Developer shall provide the City with as-built plans of the Improvement to confirm compliance with the Plans and Specifications; and WHEREAS,the Improvement shall remain a private utility; and WHEREAS,the legal fees incurred by the City for preparing this Agreement and advising the City regarding this Agreement and/or the Improvement shall be charged to the Developer at the hourly rates for development work specified in the City's fee schedule in effect when the work is performed; and 1 WHEREAS,the City staff and engineering consultant's time and expenses incurred by the City for reviewing revisions, if any, to the Plans and Specifications and reviewing the as-built plans shall be charged to the Developer, staff time will be charged at the hourly rates for development work specified in the City's fee schedule in effect when the work is performed and the City's engineering consultant's invoices, if any, shall be charged by the City to the Developer for reimbursement; and WHEREAS, the City's legal fees and the City's staff and engineering consulting fees and expenses are hereinafter collectively referred to as the "City Costs"; and WHEREAS, the EDA agrees to contribute EDA tax increment fund balance dollars in the amount of $33,000.00 ("EDA Funding") towards the City Costs and the Improvement if the Improvement is constructed in accordance with the Plans and Specifications and the Developer providing as-built plans of the Improvement to the City that are acceptable to the City. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. The above recitals are incorporated and restated herein. 2. The Developer shall design the Plans and Specifications for the Improvement. 3. The Developer shall submit the Plans and Specifications with Developer's building permit application for the Improvement. 4. The City staff and/or engineering consultants shall review the Plans and Specifications for compliance with City standards as a condition of issuing permits for the construction of the Improvement. 5. The Parties acknowledge and agree that, as construction progresses, circumstances and events may necessitate revision of the Plans and Specifications. The Developer shall submit any proposed revisions to the Plans and Specifications to the City to review for compliance with the City standards. 6. The Developer shall provide the City staff with the Developer's construction schedule for the Improvement prior to commencing construction and with updates of any changes in the schedule throughout the construction of the Improvement. 7. The City staff and/or engineering consultants shall review the Developer's as-built plans for the Improvement to confirm compliance with the Plans and Specifications. 2 8. The Developer agrees the City shall charge the Developer for the actual City Costs as follows: a. The legal fees incurred by the City for preparing this Agreement and advising the City regarding this Agreement and/or the Improvement shall be charged to the Developer at the hourly rates for development work specified in the City's fee schedule in effect when the work is performed. b. The City staff and engineering consultant's time and expenses incurred by the City for review of revisions, if any,to the Plans and Specifications shall be charged at the City staff and engineering hourly rates as specified in the City's fee schedule in effect when the work is performed. c. The City staff and engineering consultant's time and expenses incurred by the City for reviewing the as-built plans for the Improvement shall be charged to the Developer; staff time shall be billed at the hourly rates for development work specified in the City's fee schedule in effect when the work is performed. 9. The EDA shall apply the EDA Funding to the City Costs charged to the Developer whether or not the Developer constructs the Improvement and/or provides as-built plans for the Improvement that are acceptable to the City. 10. After the Developer completes the Improvement and provides as-built plans of the Improvement to the City that are acceptable to the City, the EDA shall deliver to the Developer a written statement of the actual City Costs and apply the EDA Funding toward the City Costs (the "Statement"). If the City Costs exceed the EDA Funding, the Developer shall pay the shortfall to the City within thirty (30) days after receipt of the Statement. 11. If the EDA Funding exceeds the City Costs after the Developer completes the Improvement and provides as-built plans of the Improvement to the City that are acceptable to the City, the EDA shall pay any remaining balance of the EDA Funding to the Developer upon the Developer providing proof sufficient to the City that the Developer has paid construction costs for the Improvement that equal or exceed the remaining balance of EDA Funding. 12. The Developer acknowledges and agrees that: (i) development of the Property is subject to approval by the City, including but not limited to the exercise of the City's authority over zoning, subdivision, platting and land use regulation; (ii) the Developer's obligations to pay 3 the City Costs to the City are not contingent upon approvals by the City; and(iii) this Agreement or the performance thereof by one or both parties shall not affect the City's consideration of any plans to develop the Property. 13. The Developer acknowledges and agrees that Developer's obligations hereunder are not contingent on the Developer's ability to obtain monetary contributions towards and/or easements for the Improvement from the owners of the adjacent properties identified in Exhibit A. 14. The Developer acknowledges and agrees that the Improvement is a private utility and that the Developer and its successors and assigns shall be solely responsible for maintenance and repair of the Improvement. IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of , 2024. TS Shopping Center LLC A Minnesota limited liability company By: TS Shopping Center MM LLC By: Brad Heitzinger Its: Manager APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY By: Thomas O. Melander Its: President By: Pamela J. Gackstetter Its: Secretary 4 EXHIBIT A Lot 1, Block 2, Valley Commercial Park 1st Addition, Dakota County, State of Minnesota, according to the recorded plat thereof; and Lot 2, Block 2, Valley Commercial Park 1st Addition, Dakota County, State of Minnesota, according to the recorded plat thereof. PID Nos.: 01-81200-02-010; 01-81200-02-020; 01-81200-05-001; 01-81200-05-002; 01-81200- 05-003; 01-81200-05-004 5 Ql m u M co N PLAN NOTES = j I_ I \ I 7 ��\ �\ N Q o 0 ! ________ I j_ �- \ N y o c 1. ALL WORK SHALL BE PERFORMED IN ACCORDANCE WITH THE I CONTRACTOR TO MAINTAIN f / l - �- 1 \ \ \ y CITY OF APPLE VALLEY,SPECIFICATIONS AND BUILDING ACCESS TO SITE AND ADJACENT '� I _ - _ O PERMIT REQUIREMENTS. TOP=956.7 I ' _ LI INV=941.15 PROPERTIES THROUGHOUT _ _ _ _ _ --� j \ _ 2. CONTRACTOR TO CALL GOPHER STATE CALL ONE 3 CONSTRUCTION 1 I II /� \_--- I I I I CONNECT TO EXISTING STORM -�,�/ I \ _ -- \ \\ •' °' @ aMANHOLE. IE:950.65 CONTRACTOR 1-800-252-1166 AT LEAST TWO WORKING DAYS PRIOR TO �_ _ I , II - / GLEND Y EXCAVATION/CONSTRUCTION FOR UTILITY LOCATIONS. Q / / In TO VERIFY INVERT ELEVATION - g A AVENUE ` \ co h 12 � sMH a CONNECT TO 24" STORM SEWER �/ PRIOR TO CONSTRUCTION. REPLACE EXISTING- MAIN WITH STR-05. CONTRACTOR 0)1 °��' I srs TOP=ssa.o INV=945.55 N-S 3. STORM SEWER PIPE SHALL BE AS FOLLOWS: I L - I I I \� �� NV=95o.05 SW Z = ASPHALT PAVEMENT. -� TO VERIFY EXISTING INVERT g57- \ - . u) p 15 RCP PER ASTM C-76 7 / / •III l �.�� �� f f a5y z co HDPE:0"-10"PER AASHTO M-252 MATCH EXISTING -� / I oI L \ �0���9 _p ELEVATION AND SIZE PRIOR TO Et O HDPE: 12"OR GREATER PER ASTM F-2306 0 - ,STR-03(CB) �� - STSO4949 // �a \ \ / I \ W I CONSTRUCTION o / n I RE:954.92 I �. \ PVC SCH.40 PER ASTM D-3034 o/ - - STR-03 /II�CONTRACTOR TO MAINTAIN > STR-01 CB = IE:950.83 W \f ® I I W 3 STORM SEWER FITTINGS SHALL BE AS FOLLOWS: ME:956.18 - _. ' .. �- o°� - - - ( ) -II �79 LF-18"STORM RE:954.92 !\ `� ACCESS TO SITE AND ADJACENT I RCP PER ASTM C-76,JOINTS PER ASTM C-361,C-990, /.• ME:956.44 ••••••••• / RE:954.74 181 LF 18"STORM IE:950.83 E r I / / ....� .........�\ ........ IE:951.68 E @ 0.33/0 @ 0.33% 71 IE:950.83 W 'ii --,• sr s' PROPERTIES THROUGHOUT I o AND C-443 •'•' IE:950.83 E `' TOPg955:9,' \- ' to / CONSTRUCTION z��` I m HDPE PER ASTM 3212 /' .. .."..' .".'.'.'.'.'.'. r952. rc 3 w t STR-05(CBMH)�9 / �INb / iL i i /,u , O/- INv=sso.. I 0'9 A co PVC PER ASTM D-3034,JOINTS PER ASTM D 3212 II S6 i - Q Q 1-a 955' ro s / I �� I W RE:955.92 t gy5 �a STR-02(CB) 31 LF 18"STORM - \ y IE:951.03 N rn �° a'a/ i Q� RE:954.94 @ 0.33% 1_958 CONTRACTOR TO LOWER �� y >- - 4. CONTRACTOR TO FIELD VERIFY THE LOCATIONS AND IE:951.03 S -'-957' IE:951.09 W 25 LF 18"PVC WATERMAIN AT STORM II \ I �� I I_ ELEVATIONS OR EXISTING UTILITIES AND TOPOGRAPHIC * * • I I - I U m FEATURES PRIOR TO THE START OF SITE GRADING. THE (ME:955.99 ••• 957 •, / II \ ` IE:951.09 E 0 0 0 STR-04(MH) @ 0.33% CROSSING IF VERTICAL I II I I CONTRACTOR SHALL IMMEDIATELY NOTIFY THE PROJECT I-:- ' '_ / • I I IIIIII EXISTING SANITARY CONTRACTOR TO REPLACE 956� - 4'SUMP W/ A CONFLICT IS IDENTIFIED 1 II C Z ENGINEER OF ANY DISCREPANCIES OR VARIATIONS. K " SAFE BAFFLE DURING CONSTRUCTION. II II Q I-:W: ME:956.71 L. •• °o SEWER AND WATERMAIN 956� _ EXISTING ASPHALT AND I RE:955.57 �, ::- N I • TO REMAIN, PROTECT RE-STRIPE PAVEMENT. ° 3 �� � IE:950.73 W IIII I co 5. SUBGRADE EXCAVATION SHALL BE BACKFILLED IMMEDIATELY - - a FROM DAMAGE MATCH EXISTING IE:950.73 NE I I �" No I ill E AFTER EXCAVATION TO HELP OFFSET ANY STABILITY �a �a m^ 2 PROBLEMS DUE TO WATER SEEPAGE OR STEEP SLOPES. I II q---� w REPLACE CURB AND 21 R I TOP= v m WHEN PLACING NEW SURFACE MATERIAL ADJACENT TO p 11 II oM 1.: -' 1 d� / _J I I INv=I EXISTING PAVEMENT,THE EXCAVATION SHALL BE Q II • • L� -1 �- -957 21•R srs INv=s R BACKFILLED PROMPTLY TO AVOID UNDERMINING OF Z Z 1 )- I---�� �� 957 -� GUTTER. MATCH EXISTING EXISTING PAVEMENT. Q w 2;. m�� �s'� T�_ :5 N-S r II > a> H I I II I t oxi 0 Z Z STS 1 - Q � Iirn_ ME 95ti l I I i 1 w o 6. CONTRACTOR SHALL BE RESPONSIBLE FOR ALL HORIZONTAL �r i _ il I I \III I I I I GB G i-AND VERTICAL CONTROL. TOP=953.4 0 o a' 0 X 74,000± S F II \ I I INv=9a6.o Z , o u) o INV=946.1 7. CONTRACTOR SHALL EXCAVATE DRAINAGE TRENCHES TO IL .'.•�I ° 9s I I I 1 C u) Et -a FOLLOW PROPOSED STORM SEWER ALIGNMENTS. 9- o Q o LO z II : :•=• CONTRACTOR SHALL RETAIL I I I I 1 m o o o 0 8. GRADES SHOWN ARE FINISHED GRADES.CONTRACTOR II II-- PATCH/REPLACE PAVEMENT AS III l 1 Q ~ w SHALL ROUGH GRADE TO SUBGRADE ELEVATION AND LEAVE I 1 I ` I I Z co STREET READY FOR SUBBASE. 3 • �-��+ �_ NECESSARY AROUND EXISTING I I I \ �\ o a �� : . CATCH BASINS WITHIN GRANADA I p Y D 9. ALL EXCESS MATERIAL, BITUMINOUS SURFACING,CONCRETE N 1.••-. 1 AVE. / I 1y a) w c ITEMS,ANY ABANDONED UTILITY ITEMS,AND OTHER I -- •-� 1 I /I I 7 N� , ,(7) 0 UNSTABLE MATERIALS SHALL BECOME THE PROPERTY OF / / I I 1 o I Y c� .L THE CONTRACTOR AND SHALL BE DISPOSED OF OFF THE - - j� I " 2 H N U) CONSTRUCTION SITE. - A . . - N E CB BRICK I I O a -I PLANTER "I/ I W(� II II TOP= 5.7 �. .• - - - -� JI @ r_ 10. REFER TO THE UTILITY PLAN FOR SANITARY SEWER MAIN, INv= 1.95 rM< 19- -ED -® ® - Ico O § WATER MAIN SERVICE LAYOUT AND ELEVATIONS AND 11 II ,� /2 1 - is -•;I IgQII1 �1 i I I I G. op c CASTING/STRUCTURE NOTATION. s ,_•a>. , .IYT ITII / I Ia) II Ozz+. .,1 �� I I I TOP-953.1I -•-•-� J INV=953.1 N-SII II . . .•. 11 - - -z � -� �� _ 959- 959 r I I~/ I 1 CO 11. CONTRACTOR IS RESPONSIBLE FOR CONSTRUCTION OF g� .:.f w'.'."'.'.' / I 0 PAVEMENTS AND CURB AND GUTTER WITH SMOOTH UNIFORM J :-:-:'•�::,•i::':I �_ 6�J J 11 11 f N SLOPES TO PROVIDE POSITIVE DRAINAGE. - -°�- �' -:-I 1 . °' co I 2 I // // I I 12. INSTALL A MINIMUM OF 4"CLASS 5 AGGREGATE BASE UNDER 72- : ma,.••••• - °' �I / °'/ rn 11 // \ 1 r O S KII« -- -_ _ - - - - - )9- I 1 I LL Lip L CURB AND GUTTER AND CONCRETE SIDEWALKS. 1.'. . �'_ .�,i) ) j G - - _ � �7= - , 959 = - �- �) L- __-J / 7// // h 00 0 0 I wza � �P=9 ..B" ,•.•. -• � g° // I I V� O a o a o 13 13. UPON COMPLETION OF EXCAVATION AND FILLING, 1 NV=s •.2 , :-' :. - - - - / ¢ z - F T. CONTRACTOR SHALL RESTORE ALL STREETS AND II II � � -� /I /il I II // co I o w 0m0DISTURBED AREAS ON SITE. ALL DISTURBED AREAS SHALL "' d' I •' `w. w= O Q II II - o BE RE-VEGETATED WITH A MINIMUM OF 4"OF TOPSOIL. II L 11 I I� I II p / ( ' 'I °' � o � m zci E 14. ALL SPOT ELEVATIONS/CONTOURS ARE TO GUTTER/FLOW I • • g5$ J I II / °'^B = w z c\1 a LINE UNLESS OTHERWISE NOTED. � •:•'•` _ w IIII II/I `rrrr - co I .� 5ai I 11 / NV=946.25 N-S ¢ d w W W U Z caa - ,p • ,0 I I I xwD _ Q o 15. GRADING FOR ALL SIDEWALKS AND ACCESSIBLE ROUTES V •::::. �/ � - �'- - I \� / oY N 000lll J a N INCLUDING CROSSING DRIVEWAYS SHALL CONFORM TO a . ••�•�•�•�•••- _ STOP SIGN AND STOP BAR ys I / LL ow a rn / o aai CURRENT ADA STATE/NATIONAL STANDARDS. IN NO CASE H I.•.•. (TYP.) e / L ���� _�= W o w :>EIC z a Z SHALL ACCESSIBLE RAMP SLOPES EXCEED 1 VERTICAL TO 12 I - = I - - - - - - _ - - - - - - 1( C -�� o // A Q z F HORIZONTAL. IN NO CASE SHALL SIDEWALK CROSS SLOPES - \ - �� �� -'958 -� / �I / i }c� w o --958 - C m - D ¢ �' EXCEED 2%. IN NO CASE SHALL LONGITUDINAL SIDEWALK I'-'•' --- co �� - _ _ - - - _ = - � _ _ -� - w LT_ w - z w Q a SLOPES EXCEED 5%. IN NO CASE SHALL ACCESSIBLE ��� �•• ,3 \ \ \ I w a ow 1- z Z Q CC Q PARKING STALLS OR AISLES EXCEED 2%(1.5%TARGET)IN ' '�• �1� 149TH AVE WEST 9 M _0) w 0 ALL DIRECTIONS.SIDEWALK ACCESS TO EXTERNAL BUILDING _ J y, --- L - J� I 6 SS S'6, z J CC J U DOORS AND GATES SHALL BE ADA COMPLIANT.CONTRACTOR 2 �.'•'.=•. :� - - _ �� / / SHALL NOTIFY ENGINEER IMMEDIATELY IF ADA CRITERIA _ _ _ �� / " O Q CO Q CANNOT BE MET IN ANY LOCATION PRIOR TO PAVING. NO � _ - - - - � � _ _ _ � �� - � '� � _ _ _ � � _ - _ � -��- o / / w o cM�l = U 3 CONTRACTOR CHANGE ORDERS WILL BE ACCEPTED FOR - m \ �� _ _ _ - _ - _ \!- _ �_____ _ - _ 7� - - - �� �� LA �\ I 01-A.D.A COMPLIANCE ISSUES. I \ / �n Q < m '.:Z) GB/ 1 l �r, oar mT 16. MAINTAIN A MINIMUM OF 0.5%GUTTER SLOPE TOWARDS LOWL T NV=952.2 N 957 -\ -� I m' Q o w 00 �w INV=952.3 S - \ I LL1 Z Z W 4' POINTS. Nv=ss2.6 s �_� = 957 - _ _ \1 / I I I roP=ss2s Y C7 v CO ' A , I I 1 INV=946.7 N-S a < -O INV 936.2 _ - - - -� -957 ��' - - - - - / - - /11 y co U U W D' 2 c 17. CONTRACTOR TO PROVIDE 3"INSULATION BY 5'WIDE ‘r'- I °TOP 955.9 I �h Rh INV- 52.95 - I W3 I Il y E a CENTERED ON STORM PIPE IF LESS THAN 4'OF COVER IN hNy oM� PAVEMENT AREAS AND LESS THAN 3'OF COVER IN I / I III III II I a E LANDSCAPE AREAS. \CD 0 - IN I INV- 51.0 I 1 ma» OB II INIMI IIIIII TOP=955.0 NV=949.8 D 1 hrl - / °ozz 15'RCP 1B'RG?11 CB 0- I = - - - -\ o ll oMJ f2"RCP Sr S ST S TOP=952.5 SMH INV=946.65 N-S0 U 18. ALL STORM SEWER CONNECTIONS SHALL BE GASKETED AND I - - �� �� sr I TOP 955.1 INv=947.1 W 1 �- - - - < INV 949.84 a WATER TIGHT INCLUDING MANHOLE CONNECTIONS. I I - / _ I \ <IC - - - I III I III I II N In 19. ALL STORM SEWER PIPE SHALL BE AIR TESTED IN 1 I / \\ ❑ ❑ // N 12R CB - -/ ,_=_-_ _ _ _ ACCORDANCE WITH THE CURRENT PLUMBING CODE. sr �� SMH _ - \ TOP=956.5 �11111i Z _ 2, TOP=956.7 Y INV=95a.2 N(n CB I I ��� INV=953.1 E-W/ / I \ NV=953.9 W 1y�' v' IOITOP= 55.5 ,i, 6 I V=953.9 SE \ B• - �_ • NN�T GET SE INV \ /\ I� ° \>C 20. MAINTAIN A MINIMUM OF 1.25%SLOPE IN BITUMINOUS NV- 52.2\j �95 �- PAVEMENTAREAS,0.5%SLOPE IN CONCRETE PAVEMENT r � 2'RCP ` lSTS -� 8$a� , Piz+ 8-Pic sr ,.O rnI rnrn ST 5 s'OLc I c6s ^M ST s - - sr y v C •5 5 II / t Q I I Z AREAS. (O II II S P=95,i S rnh ��TNV 56.9 Q moz INV=95.2 E&W\ ^ \ �i vai CB / \ 4n CB INV= 9 / / / \ -' (ICe <IC �' d) °� (.., INV=9 ,3 S II III INV=953.1 \ �+ti�= CB TOP=956.9 -� > 8'PVC ST S -> Cg / CB 21. CONTRACTOR SHALL REVIEW PAVEMENT GRADIENT ANDI moz / rOP=957.0 INv=sss.2 roP=sss.z I I 1TOP=952.55��¢\\ °a> FULL OF D BRIS/ `PVC INV=955.0 E-W p� - INV=s53.45 NE G II INV=947.°N-S U I \ \ II ~ / / �T S •Sr S / ��- INV=953.6 W �c I A�' U CONSTRUCT"INFALL CURB"WHERE PAVEMENT DRAINS �' I J co TOWARD GUTTER,AND"OUTFACE"CURB WHERE PAVEMENT m I / II -� T �- T -' - �� Z cO II ._ ._ - 5 CDCL DRAINS AWAY FROM GUTTER. ucc - J II I " G \ °' I // 0 0 1 ° � II}/IIh Oei 3. I i ` I �\ - O II II 1 ` f > - I1'9'1 di 1 11 / I IIo LEGEND 1 ° I WEI I I II 1 > E - - PROPERTY LINE \VI L �II I II °j Ice- F > I \ \> TOP 9523 T1 I II I II I 1 INV=9a7.1 N IT1 - EXISTING CONTOUR i - JN 11 I ( Nv=sa7.2 s z a I ^ f I CO 925 PROPOSED CONTOUR a' I I �I I / II 0 ,II C Q o 1 A..... t 1 m I 1n Q PROPOSED STORM MANHOLE(SOLID CASTING) II r / \ rl II l'' I z 0�: W - II _ - PROPOSED STORM MANHOLE(ROUND INLET CASTING) I / r 5 i z CZ °' • McDONALD'S I I II `7/`� `� f 1 I I� 0 PROPOSED STORM SEWER CLENOUT I I� I ( \ \ \ ` c / I I y CD p T -� ( 1 I PROPOSED FLARED END SECTION I I - o�� °oo LLL� o I III I I �, F 2 \ Q z3 I J � J f � _ L _ � \ IWL1 \ ih VPROPOSED RIPRAP mWW I - J/ ' v - - - -0 . .� III ~ Q ImW� I �� - - - -.- - - - _ _ GB DWI II (' cn > PROPOSED STORM SEWER < L s aw oe W W s INV=94 55 E II II II II II II r qy TOP=95.5 mo, I TOP=952.1 \ / ` II INV=947.9 N J co - I V ZI 1 TOP=955.3 INV=94 9 SW oz_z_dI NV=948.1 S-W M Li? NFzz �, L _ li I I = _ _ - c NV=945_95- i_� CB 12'RCP ~-A���� l J 0 i . 3• PROPOSED STORM SEWER 15"RCP 4.)\ _6-PVC Q .% 00 - - PROPOSED CURB AND GUTTER sAn1 s ' I T rn���rcc- WO3 I II (L V V Y �c Y �- - _ >� V ) _ _ -X- _ - - roP=9 .5 �I L Q W �I��1 (( < II V ° I 1 I I 1 -ucc I II UGC-lc towc _ LA 00� irNv=s ss sw ®� °� �� W LL Z C6 co /- / / /- / / I ' 1 \ \ / I I TOP=955.3CB ST S h$'h \ I I LI O' I FN y ' �y / / STANDARD DUTY ASPHALT PAYMENT III (/� I M IINV=NV=9511.4 S •unaF 'WTI V / 1i �/ LaL ri O ////// Is\-1 \ I If 11 II \___Sb, ) N.� de, 1 / I i I II` /� y I rn d C J w WI- WI- - LANDSCAPE AREA W Q _� _ •. . . .•.•.•. . . .•.•. . . /k a a NORTH - a Z X RECORD PLAN ACCEPTED H Q _1 > 0 > W w 1/2/24 a _1 a) - GRAPHIC SCALE IN FEET Q 0 0 20 40 80 SHEET NUMBER I- I- C300 ••:. ITEM: 4.A. ..... :�. Apple EDA MEETING DATE: May 26, 2022 Valley SECTION: Regular Agenda Description: Authorize EDA Funding in Partnership with Time Square and Three Adjacent Businesses to Address Storm Water Concerns Staff Contact: Department/ Division: Bruce Nordquist, Community Development Director Community Development Department ACTION REQUESTED: Authorize EDA Funding in Partnership with Time Square and Three Adjacent Businesses to Address Storm Water Concerns SUMMARY: At the regularly scheduled Economic Development Authority (EDA) meeting of May 26, staff will review finance options for addressing storm water ponding in an access driveway near Granada Avenue with no outlet to an adjacent storm sewer line. Adjacent businesses will need to contribute financially and provide drainage, utility and access easements toward a resulting public or private project. In years past, the City and EDA has partnered with business to address roadway and utility improvements related to the private portions of Granada Avenue and locations nearby. The City Engineer has recommended a role for the City in the design and installation of a storm sewer line extension which is part of the $100,000 estimated cost. Staff will propose an alternative financial role for the EDA given that a 2021 request for a redevelopment grant from the Dakota County CDA for about a third of the cost was not approved. BACKGROUND: Previously, storm water was routed into the sanitary sewer, a practice that cannot continue and the sanitary system was sealed years ago. A permanent solution to connect this site to the municipal storm system is required. An aerial location and the diagram showing the percentage each surrounding lot contributes to storm water within the drainage area is attached. The City Engineer will oversee the project to ensure the alignment and connection to the City storm sewer in Granada Avenue is completed. Apple Valley is the facilitator and now proposed to be a funding partner with the primary land owner of Time Square, and the adjacent property owners that each contribute to the storm water issues on site. The proposed approach offers a collaborative solution that is shared by multiple affected adjacent property owners. The City Attorney and City Engineer have both been consulted to arrive at the following scope of work summary. The City and property owners in this area have partnered on road repair and storm water projects in the past. Staff is in contact with each property owner to confirm the following: 1. The City Engineer would arrange the design, construction, scope of work and supervision as either a private installation or public project. 2. A public project could include an assessment of the cost. A private project would require a financial deposit of funds to be held in trust by the City to project completion and disbursement and required in advance for project approval by the City. 3. Each property owner north of Time Square is asked to contribute $11,000 to a shared storm water solution since none presently exists; a total amount of$33,000. 4. Each property owner north of Time Square is asked to execute an assessment waiver given the possibility of a public project. 5. Additionally, the owners are asked to provide a drainage, utility, and access easement in recordable form to address lot areas within 5 feet of the respective property lines and within the needed project area. Locations where buildings exist at the property line would not include the building area in the required easement. 6. Time Square is contributing $35,000 and a drainage, utility, and access easement within the Time Square construction limits of the property and within the service alley north of the shopping center. 7. An amount of $33,000 in funding was sought by the City in 2021 from the Dakota County CDA. The request was not supported given the quasi-public/private elements were not an eligible use of funds. BUDGET IMPACT: The Apple Valley EDA is asked to consider the use of existing Tax Increment fund balances in the amount of $33,000 toward the project as the City's share. According the Finance Director Ron Hedberg there are available funds in decertified Tax Increment District #7, which when the district was active included these same parcels. Storm water improvements are an eligible use of Tax Increments. The requested funding matches contributions by the affected parties without being onerous to small business. A best case if the EDA supports the proposal, would be to express a willingness to contribute to fix the shared storm water concern. The City Attorney and City Engineer would then begin preparing a final scope of work, plan, and agreements to manage funds flow whether as a public or private installation. At the City Council meeting of June 16, the City Council would be able to act in advance of the possible property sale at the end of June. The total project cost contributes to the time and oversight of the City Attorney and Engineer. ATTACHMENTS: Map Area Map - En:#111 rif.---77:40P1 1 1 J- ..ii=prilil - - -.__ _- . 147TH T7 - �� -maim inamiswismii..,. _.,�_z.. , - _- IN , :,,. ., . 0 ; ,,,s• .•• II is F . .. _ :------ r_.: ;... r = e s r l • c ' . T.- :::;'1 rillill'661..-:: 1. . L , i, '.. ' . . 1 , . ' -1 it i _ Y( r h1- 7 41 .. _ iiii . . • . '-"' i- r 0' i ... in C. SITE - . 1M J' ... t, ry F. ? 148TH ST W 1 I �"\ -Cr` Q. �;� -� la_ A. L;,..1 ,1 I It° i u, Y149T @F jam . , , - _J - . it ':. \ ,\ \S\ 1 `• 1 ; ji, .-. j.: 7 Arr- .:.••-._ I r � N ... >"= ` - • I ' si . � / 4:1 " '21..'I! '' li ( Ek � „ *' r .--rC r.._ T F r • itio' I. _ice I# J` .T'I' 4 . 4fi T 1/4, �- •: IINIIIM- Businesses Affected .��,"�AI: '' ''mit 1' eWiliGIs „ . Storm Water itt—o aigli f , ". Drainage Concerns [17.67.11,1 �---Ip.u1A II __... m�� i 1, L t r ow% �. MA,'i= 1r�1 Mil! Lrl ,` v 7,! Fuim► ,_�,L�' ��erifit LL�1h4 N Rai r g wti�SV Rl►I .77 1 0 75 150 300 450 Feet t. .Jr ",`1!`���AA�IIItfli_�' `' °i 'I;�ri',:� --- 4 T ____ /--- --05' A 1 ( I _ t E13—E]I' 1 805 I A \N___- 2 \ 1 \ 1 / 17) I I piit I�ri I12" EXISTING PUBLIC U vi ( 7540 \ SANITARY SEWER LINE 14Pi 7600 O I o \ \ \ n nv I � Li �� AREA=1260 SQ.YD. I I lUi 1 7.9% AREA=1664 SQ.YD. I J AREA=884 SQ.YD. I ( 10.5° U----1 \ AREA=1969 SQ.YD. \ �, — 1 n AREA=254 SO YD. I 12.4% /� 5.6% < < I < < < < `-' -�r`� _,E.i....................................-11.4 J yr EXISTING PRIVATE U GATE VALVE _ 6"WATER MAIN _ ., //// SANITARY SEWER LINE - ( I 1 J I 1 1� I I I I I I ICI I I I I I I I _ I v I 8" EXISTING WATER MAIN _—_ —I EXISTING PUBLIC ( AREA=8398 SQ.YD. �I / STORM SEWER 52 9% 8" EXISTING L____- U —1 a > ���!!!_ I WATER MAIN REA=1453 SQ.YD. 12"EXISTING I WATER MAIN ^ I 9.1% I I ) II I I I 7525 7-1 L - J - i L ____ - g i 7771.1 APPLE VALLEY SHOPPING CENTER •••• .• :. CITY OF APPLE VALLEY FIGURE 1 ••• ALLEY DRAINAGE Apple APPLE VALLEY SHOPPING CENTER.DWG DATE: 4/28/17 COMM: Valley • ITEM: 4.A. ••••• • ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Regular Agenda Description: Adopt Resolution Approving 2024 Board Officers Staff Contact: Department/ Division: Breanna Vincent, Department Assistant Community Development Department ACTION REQUESTED: Motion adopting the resolution appointing 2024 officers of the Economic Development Authority. SUMMARY: The resolution organizing the Economic Development Authority provides that the offices of President, Vice President, and Treasurer be elected annually. The appointments remain in effect until the Board elects new officers. At the meeting of the Economic Development Authority held on January 26, 2023, the following officers were appointed: President: Thomas Melander Vice-President: Ruth Grendahl Secretary: Pamela J. Gackstetter Treasurer: John Bergman Assistant Treasurer: Pamela J. Gackstetter A draft resolution is attached, with blanks to be completed, that can be adopted to appoint the 2024 officers. BACKGROUND: N/A BUDGET IMPACT: N/A ATTACHMENTS: Resolution APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA-24-01 A RESOLUTION APPOINTING 2024 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 25, 2024; 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 2024: President Vice-President Secretary Pamela J. Gackstetter Treasurer Assistant Treasurer Pamela J. Gackstetter ADOPTED this 25th day of January, 2024. , President ATTEST: Pamela J. Gackstetter, Secretary • ITEM: 4.B. ••••• • ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Regular Agenda Description: Adopt Resolution Approving 2024 EDA Budget Staff Contact: Department/ Division: Tim Benetti, Community Development Director Community Development Department ACTION REQUESTED: Adopt resolution approving 2024 EDA budget. SUMMARY: The proposed 2024 budget, approved by the City Council in their annual budget, includes the Economic Development Operations Fund. The 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 EDA. BACKGROUND: There are two primary uses for the Economic Development Operations Fund: 1. To support the partnership with Dakota County and participating cities in the business support program called "Open to Business". The program counsels small businesses 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. The program contribution from the Apple Valley EDA is approximately $9,000 for 2024. 2. To support the partnership with Dakota County and other participating cities in responding to regional, national and global market opportunities that attract businesses and workers to the greater Twin City area, including Apple Valley. Greater MSP is that regional organization that has been the visible regional economic development authority to retain, expand and attract business. The program contribution from the Apple Valley EDA is approximately $11,000 for 2024. As noted, a portion of the EDA budget is the partnership with Greater MSP. Greater MSP is a regional economic development agency that seeks to market the Twin Cities and greater Minnesota on a global scale. In 2023 Greater MSP sought a federal designation as a "Tech Hub" specifically marketing medical tech manufacturing. The Twin Cities were awarded this designation in October 2023. This designation was awarded to only 31 regions in the country and allows these regions to be eligible for $10 billion in federal funding. The attraction of medical device manufacturing is often a "clean industrial" use with high paying jobs. As part of the 2040 Comprehensive Plan medical manufacturing was specifically noted as a priority for attraction within the sand and gravel mining area as it is reclaimed. This designation should make the region, and Apple Valley a potential site for new or on-shoring device manufacturing. 2023 was a busy year for Department of Employment and Economic Development (DEED) and Greater MSP project alert/solicitations. As staff has presented to the EDA in the past, multiple times per year DEED and Greater MSP partner to issue alerts for potential and substantial development projects seeking to evaluate whether to construct in Minnesota, or, if Minnesota has already been selected, which sites in the state would meet their criteria. These projects seek confidentiality to the extent that governments can provide it, which is where Greater MSP takes the lead. Greater MSP is a private organization and is primarily funded through private businesses but is a public and private partnership. In 2020, staff saw an uptick in the scale of projects this year from prior years. These projects often seek larger acres or massing of land under single ownership, but 2023 saw project capital expenditures in the billions with land demand in the 400+ acres. Based on the limited information provided by the businesses, staff must determine whether to submit for these projects, often on truncated timelines with significant demands on submissions. In 2023, staff submitted on 5 of these national projects, and chose not to submit on 3 projects due to the nature of the project. When staff does not submit there are multiple reasons: (a) criteria set by the company on utility needs, rail demand, or other may automatically disqualify Apple Valley from submission; (b) other projects may not be the right fit due to impacts to adjacent properties. Submissions in 2023 resulted in two site visits that staff was made aware of and actually participated in one of those on-site tours and discussion with the interested group. Further discussion is pending on other solicitations, but the City has not received any formal applications, plans, or intent from any of these projects at this time. Possible activity areas in 2024 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 Minnesota Depaitiiient of Employment & Economic Development (DEED) and 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 and around the select quadrants of CR42 and Cedar Avenue. BUDGET IMPACT: The resolution approves the budgeted expenditures of$20,700. ATTACHMENTS: Resolution Budget CITY OF APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. EDA 24- RESOLUTION APPROVING 2024 PROPOSED BUDGET WHEREAS,the Apple Valley Economic Development Authority has reviewed the proposed 2024 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 2024 shall be as included below in this resolution and as supported by the detailed document, as revised. 2024 Revenues: Investment Earnings $26,000 Total Revenues $26,000 Expenditures: Wages&Benefits 600 Consultant Services $9,050 Dues&Subscriptions $11,000 Total Expenditures $20,700 ADOPTED this 25th day of January,2024,by the Apple Valley Economic Development Authority Board of Commissioners. Thomas O. Melander,President ATTEST: Pamela J. Gackstetter, Secretary 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 2020 2021 2022 2023 2024 2025 Jobs added (perm. and const.) 300 500 620 500 500 500 Bus. Dev./AV Clients Served 9 19 16 20 20 20 Summary Budget Department 93 EDA Operations Fund 2020 2021 2022 2022 2023 2024 2025 Actual Actual Actual Adopted Adopted Proposed Proposed Revenue: Grants-MC&Other - 353,981 - - - - - Admin Fees-Other Funds 50,000 - - - - - - Refunds/Reimbursements 574,320 - - - - - - Other Transfers In 399,850 - - - - - - Investment Earnings 27,110 (8,286) (59,795) 10,000 10,000 26,000 26,000 1,051,280 345,695 (59,795) 10,000 10,000 26,000 26,000 Expenditures: Salaries&Wages 108 (54) 54 550 600 600 600 Emp.Benefits 8 8 4 50 50 50 50 Supplies - - - - - - - Contractual Serv. - 6,500 8,100 8,500 9,000 9,050 9,050 Training/Travel/Dues 18,800 11,000 11,000 12,100 11,000 11,000 12,000 Developer Asstistance 399,850 353,981 - - - - - Capital outlay - - - - - - - Total Expenditure 418,766 371,435 19,158 21,200 20,650 20,700 21,700 Fund Balance Beginning 805,229 1,437,743 1,412,003 1,412,003 1,333,050 1,322,400 1,327,700 Ending 1,437,743 1,412,003 1,333,050 1,400,803 1,322,400 1,327,700 1,332,000 2024&2025 CAPITAL OUTLAY: None City of Apple Valley Department Expense Summary Budget Years(2024-2025) EDA OPERATIONS 2022 Council 2023 Council Object 2020 Actual 2021 Actual 2022 Actual Adopted Adopted June 2023 2024 Dept 2024 Admin 2025 Dept 2025 Admin Account Original Original YTD Actual Proposed Recommend Proposed Recommend Budget Budget 93 6110-SALARY-REGULAR EMPLOYEES 550 600 600 600 600 600 93 6112-SALARY-SEASONAL TEMP 108 -54 54 0 93 6105-SALARIES AND WAGES 108 -54 54 550 600 0 600 600 600 600 93 6138-MEDICARE 2 1 1 50 50 0 50 50 50 50 93 6139-FICA 7 3 3 0 0 0 93 6141-PENSIONS-PERA 0 4 0 0 93 6125-EMPLOYEE BENEFITS 8 8 4 50 50 0 50 50 50 50 93 6100-TOTAL PERSONNEL SERVICES 116 -46 58 600 650 0 650 650 650 650 93 6235-CONSULTANT SERVICES 0 6,500 8,100 8,500 9,000 0 9,050 9,050 9,050 9,050 93 6249-OTHER CONTRACTUAL SERVICES 0 0 0 11,000 93 6230-CONTRACTUAL SERVICES 0 6,500 8,100 8,500 9,000 11,000 9,050 9,050 9,050 9,050 93 6280-DUES&SUBSCRIPTIONS 18,800 11,000 11,000 12,100 11,000 320 11,000 11,000 12,000 12,000 93 6270-TRNG/TRAVL/DUES/UNIF 18,800 11,000 11,000 12,100 11,000 320 11,000 11,000 12,000 12,000 93 6200-TOTAL OPERATING COSTS 18,800 17,500 19,100 20,600 20,000 11,320 20,050 20,050 21,050 21,050 93 6397-DEVELOPER ASSISTANCE 0 353,981 0 766,902 93 6301-OTHER EXPENDITURES 0 353,981 0 766,902 93 6300-TOTAL OTHER EXPENDITURES 0 353,981 0 766,902 93 6801-TOTAL CONSTRUCTION COSTS 0 0 0 0 93 6800-TOTAL CONSTRUCTION COSTS 0 0 0 0 18,916 371,436 19,158 21,200 20,650 778,222 20,700 20,700 21,700 21,700 CITY OF APPLE VALLEY 2024 BUDGET ACCOUNT DETAIL DEPT 93:EDA OPERATIONS FUND-3212 COMPANY 3210: EDA OPERATIONS 2022 2023 2023 2024 2024 2025 2025 ACC'T DESCRIPTION COUNCIL COUNCIL YEAR END DEPT ADMIN DEPT ADMIN ADOPTED ADOPTED PROJECTED PROP RECOMMEND PROP RECOMMEND SALARIES 6110 Regular Employees 550 600 600 600 600 600 600 6138 Medicare 50 50 50 50 50 50 50 Total 600 650 650 650 650 650 650 6235 CONSULTANT SERVICES Open to Business 8,500 9,000 9,000 9,050 9,050 9,050 9,050 Total 8,500 9,000 9,000 9,050 9,050 9,050 9,050 6280 I DUES&SUBSCRIPTIONS Membership in local chapters of Nordic Chambers of Commerce 1,500 - - - - - Greater MSP 10,600 11,000 11,000 11,000 11,000 12,000 12,000 Total 12,100 11,000 11,000 11,000 11,000 12,000 12,000 Total Net of Personnel 20,600 20,000 20,000 20,050 20,050 21,050 21,050 TOTAL EXPENSES $ 21,200 $ 20,650 $ 20,650 $ 20,700 $ 20,700 $ 21,700 $ 21,700 12/20/2024 2024 EDA pp Budget A roval Economic Development Authority Meeting January 25, 2024 A�Valley 1 2024 Budget Summary Approved by the City Council in their annual budget, includes the Economic Development Operations Fund Includes the anticipated activities in the coming year. If need arises - to address development opportunities, such as Business Retention, Expansion and Attraction (BREA) Future action would be requested to address these needs. Apple. Valley 2 1 12/20/2024 Budget 2024 Revenues: Investment Earnings $26,000 Total Revenues $26,000 Expenditures: Wages & Benefits 650 Consultant Services $9,050 Dues & Subscriptions $12,000 Total Expenditures $21,700 Apple IIey 3 Two Uses for Economic Development Operations Fund: Support partnership with Dakota County and participating cities in the business support program called "Open to Business". program counsels small businesses in business plan development, marketing strategies, and business concept to realization best practices that result in a physical location or business expansion. Micro-grant start-up financing is used in combination with local lender resources to facilitate business development and growth. contribution from Apple Valley EDA is $9,000 for 2024. Appvalley 4 2 12/20/2024 Two Uses for Economic Development Operations Fund: Support the partnership with Dakota County and other participating cities in responding to regional, national and global market opportunities that attract businesses and workers to the greater Twin City area, including Apple Valley. D Greater MSP is that regional organization that has been the visible regional economic development authority to retain, expand and attract business. Program contribution from Apple Valley EDA is $11,000 for 2024. A Valley 5 Results. . . 2023 Greater MSP sought a federal designation as a "Tech Hub" specifically marketing medical tech manufacturing. Twin Cities awarded designation October 2023. Designation awarded to only 31 regions in the country and allows these regions to be eligible for $10 billion in federal funding. Attraction of medical device manufacturing is often a "clean industrial" use with high paying jobs. 2040 Comprehensive Plan identifies medical manufacturing as a priority for attraction within the sand and gravel mining area. Designation should make the region — and Apple Valley a potential site for new or on-shoring device manufacturing. A Valle Y 6 3 12/20/2024 Results. . . 2023 was a busy year for DEED and Greater-MSP project alert/solicitations. ❑ 2023 saw project capital expenditures in the billions with land demand in the 400+ acres. Based on the limited information provided by the businesses, staff must determine whether to submit for these projects, often on truncated timelines with significant demands on submissions. ❑ In 2023, staff submitted on 5 of these national projects, and chose not to submit on 3 projects (due to the nature of the project, limited transportation services, utility capacity, etc.) Apple Valley 7 Action Requested Adopt resolution approving the 2024 EDA budget. Questions for Staff? A Valle v 1 8 4 12/20/2024 CITY OF APPLE VALLEY 2024 BUDGET ACCOUNT DETAIL DEPT 93:EDA OPERATIONS FUND-3212 COMPANY 3210: EDA OPERATIONS 2022 2023 2023 2024 2024 2025 2025 ACCT DESCRIPTION COUNCIL COUNCIL YEAR END DEPT ADMIN DEPT ADMIN ADOPTED ADOPTED PROJECTED PROP RECOMMEND PROP RECOMMEND--: SALARIES 6110 Regular Employees 550 600 600 600 600 600 600 6138 Medicare 50 50 50 50 50 50 50 Total _ 600 I 650 650 I 650 650 650 650 6235 CONSULTANT SERVICES Open to Business 8,500 9,000 9,000 9,050_ 9,050 I 9,050 9,050 Total 8,500 9,000 9,000 9,050 9,050 9,050 9,050 6280 I DUES&SUBSCRIPTIONS Membership in local chapters of Nordic Chambers of Commerce 1,500 - - - - - Greater MSP 10,600 11,000 11,000 11,000 11,000 12,000 12,000 Total 12,100 11,000, 11,000 11,000 11,000 12,000 12,000 Total Net of Personnel 20,600 20,000 20,000 20,050 20,050 21,050 21,050 le TOTAL EXPENSES $ 21,200 $ 20,650 $ 20,650 $ 20,700 $ 20,700 $ 21,700 $ 21,700 AppValley 9 Summary Budget Department 93 EDA Operations Fund 2020 2021 2022 2022 2023 2024 2025 Actual Actual Actual Adopted Adopted Proposed Proposed Revenue: 1 Grants-MC&Other - 353,981 - - - - - Admin Fees-Other Funds 50,000 - - - - - - Refunds/Reimbursements 574,320 - - - - - - Other Transfers In 399,850 - - - - - - Investment Earnings 27,110 (8,286) (59,795) 10,000 10,000 26,000 26,000 1,051,280 345,695 (59,795) 10,000 10,000 26,000 26,000 Expenditures: Salaries&Wages 108 (54) 54 550 600 600 600 Emp.Benefits 8 8 4 50 50 50 50 Supplies - - - - - - - Contractual Serv. - 6,500 8,100 8,500 9,000 9,050 9,050 Training/Travel/Dues 18,800 11,000 11,000 12,100 11,000 11,000 12,000 Developer Asstistance 399,850 353,981 - - - - - Capital outlay - - - - - - - Total Expenditure 418,766 371,435 19,158 21,200 20,650 20,700 21,700 Fund Balance Beginning 805,229 1,437,743 1,412,003 1,412,003 1,333,050 1,322,400 1,327,700 Ending 1,437,743 1,412,003 1,333,050 1,400,803 1,322,400 1,327,700 1,332,000 A valley 10 5 12/20/2024 I City of Apple Valley Department Expense Summary Budget Years(2024-2025) EDA OPERATIONS 2022 Council 2023 Council Dept 2020 Actual 2021 Actual 2022 Actual Adopted Adopted Juno 2023 2024 Dept 2024 Admin 2025 Dept 2025 Admin ACWuIt Original Original YTO Actual Proposed Recommend Proposed Recommend Budget Budget 93 6110-SALARY-REGULAR EMPLOYEES 550 600 600 600 600 600 93 6112-SALARY-SEASONAL TEMP 108 -54 51 0 93 6105-SALARIES AND WAGES 108 54 54 550 600 0 600 600 600 600 93 6138-MEDICARE 2 1 1 50 50 0 50 50 50 50 93 6139-FICA 7 3 3 0 0 0 93 6141-PENSIONS-PERA 0 4 0 0 93 6125-EMPLOYEE BENEFITS 8 8 4 50 50 0 50 50 50 50 93 6100-TOTAL PERSONNEL SERVICES 116 -46 58 600 650 0 650 650 650 650 93 6235-CONSULTANT SERVICES 0 6.500 8,100 8.500 9000 0 9050 9050 9050 9.050 93 6249.OTHER CONTRACTUAL SERVICES 0 0 0 11 000 93 6230-CONTRACTUAL SERVICES 0 6,500 8,100 8.500 9,000 11,000 9,050 9,050 9,050 9,050 93 6280-DUES 8 SUBSCRIPTIONS 18.800 11 000 11.000 12.100 11.000 320 11.000 11,000 12.000 12.000 93 6270-TRNG/TRAVL/DUES/UNIF 18,800 11.000 11,000 12.100 11,000 320 11,000 11,000 12,000 12,000 93 6200-TOTAL OPERATING COSTS 18,800 17,500 19,100 20,600 20,000 11,320 20,050 20,050 21,050 21,050 93 6397.DEVELOPER ASSISTANCE 0 353,961 0 766 902 93 6301-OTHER EXPENDITURES 0 353.981 0 766.902 93 6300-TOTAL OTHER EXPENDITURES 0 353,981 0 766,902 93 6801-TOTAL CONSTRUCTION COSTS 0 0 0 0 A�Valley 93 6800-TOTAL CONSTRUCTION COSTS 0 0 0 0 18,916 371,436 19,158 21,200 20,650 778,222 20,700 20,700 21,700 21,700 11 6 • ITEM: 4.C. • •• ••• ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Regular Agenda Description: "Open to Business" Program Joint Powers Agreement Staff Contact: Department/ Division: Alex Sharpe, Planning and Economic Dev. Spec. Community Development Department ACTION REQUESTED: Approve the Joint Powers Agreement with Dakota County CDA and various participating communities to participate in the "Open to Business" program. SUMMARY: Attached for your consideration is a Joint Powers Agreement with the Dakota County Community Development Agency (CDA) for the "Open to Business" program in Dakota County. The program is offered through the Metropolitan Consortium of Community Developers (MCCD), and helps small businesses and entrepreneurs that need individual advice and counseling, and access to capital in support of partnerships with local commercial banking resources. Small businesses and entrepreneurs generate a significant number of jobs and income, but are often unable to obtain traditional funding because they are considered too risky by many lending institutions. The technical assistance and financing network offered by MCCD can make a difference in creating a successful business. The "Open to Business" program hired Natalie Mouilso as Dakota County's Business Advisor in 2020. Since that time, Natalie has met with numerous businesses, assisting in both business advisement and direct loans to fill gap financing. Ms. Mouilso will be presenting a summary of 2023 which included a number of loans to Apple Valley businesses and a significant amount of hours providing businesses with assistance. Ms. Mouilso provides expertise in start-up financing and business plan development, as well as meeting with businesses at other locations at their convenience. In addition to Apple Valley, the participating communities include Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, West St. Paul, and small cities and townships in the County. The 2023 year end report is attached for reference. BACKGROUND: N/A BUDGET IMPACT: The CDA will continue to administer the program and fund half of MCCD's $165,000 fee; participating cities fund the other half of the fee. Apple Valley's cost to participate in this program for 2024 -2026 is $9,000 per year, which represents 50% of the total cost for the City's participation of$18,000. This fee has increased from the 2023 Apple Valley share of $8,100. This is the first increase in the fee since the 2018-2020 agreement. Since that time, the services from Open to Business have increased dramatically in both quality and quantity. ATTACHMENTS: Agreement Memo Agreement Report JOINT POWERS AGREEMENT Open to Business Program THIS JOINT POWERS AGREEMENT (this "Agreement"), is made as of January 1, 2024,by and between the DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY (the "CDA"), a public body corporate and politic organized and existing under the laws of the State of Minnesota (the "State"), and each of the BURNSVILLE ECONOMIC DEVELOPMENT AUTHORITY, CITY OF LAKEVILLE, CITY OF MENDOTA HEIGHTS, INVER GROVE HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY, EAGAN ECONOMIC DEVELOPMENT AUTHORITY, HASTINGS ECONOMIC DEVELOPMENT AND REDEVELOPMENT AUTHORITY, ROSEMOUNT PORT AUTHORITY, FARMINGTON ECONOMIC DEVELOPMENT AUTHORITY, SOUTH ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, AND WEST ST. PAUL ECONOMIC DEVELOPMENT AUTHORITY, MINNESOTA (each individually a "Local Government Entity" and together the "Local Government Entities"), each a political subdivision of the State. RECITALS: A. In order to pursue common goals of fostering economic development, the CDA and the Local Government Entity Cities desire to engage the Metropolitan Consortium of Community Developers, a Minnesota non-profit corporation ("MCCD") to undertake the "Open To Business Program" (the"Program")within Dakota County(the"County"). B. Pursuant to the Program, MCCD will provide technical assistance and access to capital to small business and potential entrepreneurs in the County. C. The CDA and the Local Government Entities propose to jointly exercise their common economic development powers to undertake the Program. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the CDA and each of the Local Government Entities, each party does hereby represent, covenant and agree with the others as follows: Section 1. Representations. Each of the Local Government Entities and the CDA makes the following representations as to itself as the basis for the undertaking on its part herein contained: (a) It is a political subdivision of the State of Minnesota with the power to enter into this Agreement and carry out its obligations hereunder. Joint Powers Agreement (b) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which it is now a party or by which it is bound, or constitutes an event of default under any of the foregoing. Section 2. Powers to be Exercised. The powers to be jointly exercised pursuant to this Agreement are the powers of the CDA and the Local Government Entities under Minnesota Statutes, Chapter 469, to undertake activities to promote economic development within their respective jurisdictions. Section 3. Method for Exercising Common Powers; Funds. The CDA, on its own behalf and on behalf of the Local Government Entities, will initially enter into an agreement with MCCD in substantially the form attached hereto as Exhibit A (the "Agreement") to engage MCCD to operate the Program within Dakota County. The CDA and each of the Local Government Entities will make payments to MCCD as described in Exhibit A of the Agreement. The CDA may from time to time execute and deliver documents amending, modifying, or extending the Agreement as it deems necessary or convenient, provided, that no such document will adversely affect services provided to, or amounts payable by, any Local Government Entity without the prior written consent of such Local Government Entity. Section 4. Limited Liability. Neither the CDA nor any of the Local Government Entities shall be liable for the acts or omissions of the other in connection with the activities to be undertaken pursuant to this Agreement. To the extent permitted by law, (a) the CDA hereby indemnifies the Local Government Entities for costs associated with claims made against the Local Government Entities directly relating to actions taken by the CDA, and (b) each Local Government Entity hereby indemnifies the CDA for costs associated with claims made against the CDA directly relating to actions taken by such Local Government Entity. Nothing herein shall be deemed a waiver by the indemnifying party of the limits on liability set forth in Minnesota Statutes, Chapter 466; and the indemnifying party shall not be required to pay, on behalf of the indemnified party, any amounts in excess of the limits on liability set forth in Minnesota Statutes, Section 466.04, less any amounts the indemnifying party is required to pay on behalf of itself, its officers, agents and employees for claims arising out of the same occurrence. Section 5. Conflict of Interests; Representatives Not Individually Liable. The CDA and each of the Local Government Entities, to the best of its knowledge, represents and agrees that no member, official or employee of their respective bodies shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is directly or indirectly interested. No member, official or employee of the CDA or any Local Government Entity shall be personally liable with respect to any default or breach by any of them or for any amount which may become due to the other party or successor or on any obligations under the terms of this Agreement. 2 Joint Powers Agreement Section 6. Term; Distribution of Property. The term of this Agreement shall expire on December 31, 2026. There is no property which will be acquired by the CDA or any Local Government Entity pursuant to the Program which would need to be distributed at the end of the term hereof. Section 7. Notices and Demands. A notice, demand or other communication under this Agreement by any party to another shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested or delivered personally to the person and at the addresses identified on each signature page hereto, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. [Remainder of page intentionally left blank] 3 Joint Powers Agreement IN WITNESS WHEREOF, the CDA and the Local Government Entities have caused this Agreement to be duly executed in their respective names and behalf as of the date first above written,with actual execution on the dates set forth below. DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Dated: By Its Executive Director Notice Address: Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123 Attn: Lisa Alfson, Director of Community and Economic Development A - 1 Joint Powers Agreement APPLE VALLEY ECONOMIC DEVELOPMENT AUTHORITY Dated: By Its By Its Notice Address: 7100 147th Street W. Apple Valley, MN 55124 Attn: A- 6 Joint Powers Agreement Dakota County EF i� Board of Commissioners CDA Request for Board Action Meeting Date: December 19, 2023 Agenda #: 5D DEPARTMENT: Community and Economic Development FILE TYPE: Regular - Consent TITLE Approval Of Three-Year Participation Agreement For Open To Business Program PURPOSE/ACTION REQUESTED • Approve participation in the Open To Business program for 2024, 2025 and 2026. • Authorize Executive Director to enter into a contract with Metropolitan Consortium of Community Developers for the Open To Business program, and enter into joint powers agreements with participating cities. SUMMARY The CDA and the 11 largest cities in Dakota County launched Open To Business (OTB) in 2013, a program that provides business advisory services and access to capital for entrepreneurs and small businesses in Dakota County. The participating cities and CDA share the cost of the program. The CDA enters into a joint powers agreement (JPA) with the 11 participating cities to act as the fiduciary agent and to administer the contract with the Metropolitan Consortium of Community Developers (MCCD), the OTB non-profit service provider. Natalie Mouilso has been the Dakota County OTB business advisor since August 2020. Ms. Mouilso provides one-on-one technical assistance to business owners and aspiring entrepreneurs on a wide range of topics including business plan development, feasibility analysis, marketing, licensing, and cash flow and other financial projection development. The participating cities have expressed enthusiastic support for Ms. Mouilso continuing as the dedicated OTB advisor for the next three years. The annual cost of the OTB program for the next three years is $165,000. This reflects a 10 percent increase from the last contract; however, the annual contract amount has been $150,000 since 2018. The cost covers the direct and indirect staffing needs for the program. The CDA's portion of the fee will not exceed $78,280 to match the 11 participating cities' fees plus the $8,440 to cover service for the small cities and townships for a total CDA investment not to exceed $86,720 (Attachment A). The CDA's continued financial support of the countywide OTB program is supported by the CDA's economic development powers which were established by the Minnesota Legislature and the Dakota County Board of Commissioners in 2000. The OTB program is consistent with several Economic Development Strategy Guiding Principles including: (1) it is a collaborative approach to economic development; (2) it serves a need located in more than one community; (3) it responds to the need for specialized expertise and economies of scale; and (4) it is non-duplicative of other services. RECOMMENDATION Staff recommends entering into an agreement with MCCD for Open To Business services for 2024, 2025 and 2026, and executing joint powers agreements with the 11 participating cities. Meeting Date: December 19, 2023 Agenda #: 5D EXPLANATION OF FISCAL/FTE IMPACTS The annual cost for the OTB program is $165,000. The costs will be split between the CDA and the 11 participating cities, with the CDA's portion of $78,280 to match the 11 participating cities' fees plus the $8,440 to cover service for the small cities and townships for a total CDA investment not to exceed $86,720. Participating cities will be invoiced for their portions of the cost. ® None ❑ Current budget ❑ Other ❑ Amendment Requested ❑ New FTE(s) requested RESOLUTION WHEREAS, the Dakota County Community Development Agency (CDA) was granted the powers of an economic development authority in 2000 by Minnesota Law and an authorizing resolution adopted by the Dakota County Board of Commissioners (Resolution No. 00-543); and WHEREAS, the CDA in conjunction with the 11 largest cities in Dakota County launched the countywide Open To Business program in 2013 to provides business advisory services and access to capital to entrepreneurs and small businesses in Dakota County; an WHEREAS, the CDA and 11 cities have annually renewed participation in the Open To Business program since 2013, with the CDA acting as the fiduciary agent and administrator of the contract with the Metropolitan Consortium of Community Developers and joint powers agreements executed between each participating city and the CDA; and WHEREAS, the annual cost for the Open To Business program for 2024 — 2026 is $165,000; and WHEREAS, the CDA portion of the annual cost of the program is fifty percent (50%) to match each participating city, as well as to cover the total cost of serving the small cities and townships; and WHEREAS, the Open To Business program is consistent with the Economic Development Strategy and Guiding Principles adopted by the Dakota County CDA Board of Commissioners, in that it is a collaborative approach; it is a response to a need for specialized expertise and economies of scale; it serves a need that is located in more than one community; and it is non-duplicative of other services. NOW, THEREFORE BE IT RESOLVED by the Dakota County Community Development Agency Board of Commissioners hereby: 1 . Approves CDA participation in the Open To Business program for 2024, 2025 and 2026 subject to participation of the Dakota County cities. 2. Authorizes the Executive Director to execute a three-year contract with the Metropolitan Consortium of Community Developers for an amount not to exceed $165,000 annually, of which the CDA's portion of the fee shall not exceed $86,720. 3. Authorizes the Executive Director to execute a joint powers agreement between the CDA and the participating cities, designating the CDA as fiscal agent for the contract with the Metropolitan Consortium of Community Developers and requiring each city to submit a participation fee to the CDA. PREVIOUS BOARD ACTION 12-5128; 9-18-2012 13-5290; 10-17-2013 14-5467; 12-16-2014 Meeting Date: December 19, 2023 Agenda #: 5D 15-5655; 12-15-2015 17-5830; 1-24-2017 17-5945; 12-12-2017 21-6387; 2-16-2021 21-6500; 12-14-2021 ATTACHMENTS Attachment A: Proposed 2024-2026 agreement and fee schedule BOARD GOALS ❑ Focused Housing Programs ® Collaboration ❑ Development/Redevelopment ❑ Financial Sustainability ❑ Operational Effectiveness PUBLIC ENGAGEMENT LEVEL ❑ Inform and Listen ❑ Discuss ❑ Involve ❑ N/A CONTACT Department Head: Lisa Alfson, Director of Community and Economic Development Author: Lisa Alfson Contract for Services for the Open To Business Program THIS AGREEMENT is dated , 2023, and is between the Dakota County Community Development Agency ("CDA") and Metropolitan Consortium of Community Developers, a Minnesota nonprofit corporation("MCCD"). WHEREAS, the CDA, on behalf of itself and the 11 political subdivisions of the State of Minnesota listed on Exhibit A here to (the "Local Government Entities"), which each have powers with respect to a city with a population over 10,000 (collectively the "Municipalities"), wishes to engage MCCD to render services under the model known as "Open To Business," a program providing small business technical assistance and capital to existing businesses and residents and other parties interested in opening a business within Dakota County(the "County") (the "Program"); and A 1 WHEREAS, MCCD has successfully provided the services requi to administer and out the Program in Dakota County from 2013 —2023; and WHEREAS,pursuant to CDA Resolution No. , adopted on (the "Resolution"), the CDA is authorized to enter into this agreement with MCCD for the Program; and II mi WHEREAS, pursuant to the Resolution and certain joint powers agreements to be entered into between the CDA and the Local Government Entities (the "Joint Powers Agreements"), the CDA will act as fiscal agent for the Local Government Entities in connection with this Agreement; and it III WHEREAS, the CDA will pay from its ownfunds 50 perc nt of the fee charged by M D for the Program in the Municipalities and 100 percent of the fee charged by MCCD for the Program in the small cities and townships within the County with populations less than 10,000 residents ("Small Cities and Townships"), as further described herein and in Exhibit A; and WHEREAS,pursuant to the Joint Powers Agreements, the Local Government Entities will be required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A, representing the remaining 50 percent of the fee charged by MCCD for the Program in the Municipalities. Now therefore, for good and valuable consideration,the receipt of which is hereby acknowledged, the parties agree as follows" TIME OF PERFORMANCE The term of this Agreement and the period during which MCCD will provide services hereunder will commence upon the first day of January 2024, and automatically renew January 1, 2025, and January 1, 2026. This agreement will terminate on December 31, 2026, 1 subject to earlier termination as provided herein. MCCD will perform the services necessary to carry out the Program as promptly as possible, and with the fullest due diligence. COMPENSATION The CDA will compensate MCCD for its services hereunder an amount equal to One Hundred Sixty-Five Thousand Dollars ($165,000) ("Contract Amount"). The CDA will pay such amount in two equal installments, the first no earlier than March Pt and the second no earlier than September 30th, upon receipt of invoices from MCCD. Subject to the limits above,payments will be due within 15 days of receipt of the respective invoices. The portion of the Contract Amount payable from Participation Fees will be payable by the CDA only from and to the extent such Participation Fees are paid by the respective Local Government Entities. In the event a Local Government Entity does not pay the CDA its Participation Fee in amounts and by deadline described in Exhibit A, the CDA will notify MCCD, and MCCD will immediately cease the Program in that Municipality. Upon such termination, the Contract Amount will be reduced by an amount equal to the Participation Fee which such Local Government Entity did not pay and the amount thf CDA would have paid as a matching payment. I i 111 S E OF SEVICES im MCCD will provide technical assistance and access to capital to existing businesses, residents and those parties interested in starting a business in any of the Municipalities, Small Cities, and Townships within Dakota County as further described on Exhibit B and Exhibit C hereto, which sets forth the Dakota Open To Business Program Scope of Services. REPORTII, OP i i MCCD will submit quarterly reports to the CDA in lirm ansubstance acceptabe to the CDA. Reports will provide information in the agreement for County and will include a sub-report for each Municipality and each of the Small Cities and Townships Reports will include the following information: > Number of inquiries, entrepreneurs, and businesses served > Hours of technical assistance provided > Hours of dedicated program (including but not limited to—city initiatives,program outreach,public events, city meetings,research, client follow-up, general inquiries) ➢ Type of business/industry ➢ Annual sales revenue ➢ Number of businesses opened 2 > Number of businesses expanded/stabilized > Number and amount of financing packages > Demographic information on entrepreneurs > Business city and/or resident city The required reporting schedule is as follows: Pr quarter January—March, report due April 3 0th 2nd quarter April—June,report due July 31 st 3rd quarter July—September, report due October 31st 4th quarter October—December, report due January 31 st In addition to the foregoing, MCCD will provide additional reports as reasonably El requested y the CDA or Local Government Entities. Client confidentiality being a core component of the service model, MCCD will not typically report specific client/business information in its regular reporting, However, with permission from the clieott, MCCD will produce profiles of successful clients for publication dissemination and media release. P ONNEL MCCD representsat it has, or will employ or contract for, at its own expense, all personnel required to perform the services necessary to carry out the Program. h personnel will not be employees of, or have any contractual relationship with, t County, the CDA, or any of the Local Government Entities. No tenure or any other rights or benefits, including worker's compensation, unemployment insurance, medical care, sick leave, vacation pay, severance pay, or any other benefits available to County, CDA, or any of the Local Government Entities' employees shall accrue to MCCD or employees of MCCD performing services under this Agreement. MCCD is an independent contractor. All of the services required to carry out the Program will be performed by MCCD and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. Natalie Mouislo shall be the dedicated MCCD Program advisor for the County, CDA, and Local Government Entities for the duration of this Agreement. If there are material' changes to Ms. Mouilso's position with MCCD during the time of this Agreement, the CDA will be informed by MCCD immediately. 1 Material is defined as any event or events that would prohibit Ms.Mouislo from being the full-time Program Advisor for Dakota County. 3 USE OF CDA OFFICE SPACE The CDA will make available a cubicle space for MCCD personnel at the CDA office building for use by MCCD in carrying out the Program. MCCD personnel will have access to the CDA meeting rooms, wireless internet services, copy machines, and printers. MCCD personnel shall comply with all CDA office rules and policies regarding the use of CDA office space, equipment, and internet access. If the CDA, in its sole direction, determines that MCCD personnel has failed to comply with CDA office rules and policies, MCCD personnel will be required to vacate the CDA office and the CDA will cease to provide MCCD office space to carry out the Program. INTEREST OF MEMBERS OF THE CDA AND OTHERS No officer, member, or employee of the CDA and no member of its governing body, and no other public official or governing body of any locality in which the Program is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Program, will participate in the decision relating to this Agreement which affects he/she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement. ASSIGNABILITY i f MCCD will not assign any interest in this Agreement and not transfer any ' rest in the same without the prior written approval of the CDA. CO PLIANCE WITH LOCAL LAWS ♦ Li MCCD agrees to comply with all federal laws, statutes, and applicable regulati of the State of Minnesota and the ordinanc of the Local Government Entities. INSURANCE T Genera Terms. MO to to self and to protect di CDA under the emnity provisions set fort above Contractor shall, at Contractor's expense, procure an maintain a policy of Professional Liability (PL) insurance covering the term of this Contract. Such policy of PL insurance shall apply to the extent of, but not as a limitation upon or in satisfaction of,the indemnity provisions herein. All retentions and deductibles under such policies of insurance shall be paid by Contractor. Each such policy of insurance shall contain a clause providing that such policy shall not be cancelled by the issuing insurance company without at least 30 days' written notice to the CDA of intent to cancel. Certificates. Prior to or concurrent with execution of this Contract, Contractor shall file certificates of such policies of insurance with the CDA. Failure to Provide Proof of Insurance. The CDA may withhold payments or immediately terminate this Contract for failure of Contractor to furnish proof of insurance coverage or to comply with the insurance requirements as stated above. INDEMINFICATION MCCD agrees to defend, indemnify, and hold harmless the County, the CDA, the Local Government Entities, and each of their respective officials, agents, volunteers and 4 employees from any liability, claims, causes of action,judgements, damages, losses, costs, or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of MCCD, its subcontractors, anyone directly or indirectly employed by MCCD or any if its subcontractors, and/or anyone for whose acts and/or omissions MCCD may be liable in the performance of the services required by this Agreement, and against all loss by reason of failure of MCCD to perform any obligation under this Agreement. NOTICES A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail,portage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD is addressed or delivered personally to: Tyler Hilsabeck Metropolitan Consortium of Commu velopers 3137 Chicago Avenue South Minneapolis, MN 55407 (b) In the case of the CDA is addressed or delivered personally to: Lisa Alfson, Director of Community and Economic Development Dakota County Community Development Agency 1228 Town Centre Dri Eagan, MN 55123 II Or at such other address with e any party as that party may designate i iting and forward to the other as provide in this Section. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. NON-DISCRIMATION In connection with its activities under this Agreement, MCCD will not violate any Federal or State laws against discrimination. DEFAULT AND CANCELLATION Failure of the MCCD to perform any of its obligations under this Agreement to the satisfaction of the CDA will constitute in a default hereunder. If a default occurs, MCCD will have 60 days to cure any and all defaults and come into compliance with this Agreement. MCCD will immediately notify the CDA of any default. MCCD and the CDA will develop agreed upon milestones that must be met within the 60-day period to avoid cancellation of this Agreement. 5 The primary default would be the loss of Ms. Mouilso as the dedicated MCCD Program advisor. If Ms. Mouilso is no longer the dedicated MCCD Program advisor, MCCD will be expected to meet the following milestones within the 60-day period— 1. MCCD will inform the CDA within 48 hours of Ms. Mouilso's employment departure notice. 2. The name and contact information of the interim MCCD Program advisor for Dakota County will be shared with CDA and Local Government Entities within three business days of Ms. Mouilso's departure notice. 3. MCCD will continue to actively work with Dakota County clients on a full-time basis in the event of a default and respond to client communication in a timely manner as defined elsewhere in this Agreement. 4. MCCD will continue to track and input client data to ensure the quarterly report is accurate when generated(see REPORTING section, page 2, for details). MCCD staff, including the interim MCCD Program advisor, will meet with CDA staff weekly(at a minimum)to provide updates on clients, Program work in Dakota County, etc. Local Government Entities will invited to these meetings. I MCCD will continue to actively market the MCCD P ogram in the same capacity as prior to the default. i Hiring a new dedicated MCCD Program advisor for Dakota County is notexpected within 60 days of the default; however, steps to secure a new, qualified, full-time MCCD Program advisor will occur within the 60 days. Steps taken to secure a new advisor will be regularly communicated to CDA. fault is not remedied in 60 days, and/or the agreed upon milestones are not met within the'60 days, the CDA may cancel this Agreement in its entirety by five additional days' written notice to MCCD. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 6 DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY By: Tony Schertler, Executive Director Date: MC By Printed Name: Elena ar er , inted Title. Chief Executive Officer Date: Exhibit A 2024, 2025 & 2026 Local Government Entity Annual Participation Fee Schedule Municipality Local Government Total CDA Local Government Entity Fee Share of Entity Participation Fee Fee Lakeville City of Lakeville $21,380 $10,690 $10,690 Eagan Eagan Economic Development $21,280 $10,640 $10,640 Authority Burnsville Burnsville Economic $21,000 $10,500 $10 500 416 Development Authority Apple Valley Apple Valley Economic $18,000 $9,000 $9 Development Authority 4 Inver Grove Inver Grove Heights Econom' $14,000 $7,000 $7 Heights Development Authority li I Rosemount Rosemount Port Authority $11,3,00 $5,650 $5 Ir Farmington Farmington Ec is $11,000 $5,500 $5, Development Authority Hastings Economic Hastings Development and $11,000 $5,500 $5,500 Redevelopment Authority South St. Paul South St. Paul Economic $10,800 $5,400 $5,400 Development Authority West St. Paul West St. Paul Economic $10,800 $5,400 $5,400 Development Authority Mendota City of Mendota Heights $6,000 $3,000 $3,000 Heights Small Cities n/a $8,440 $8,440 $0 and Townships Total $165,000 $86,720 $78,280 8 Exhibit B Dakota Open To Business Program Scope of Services Open To Business ("OTB") Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Municipalities' and Small Cities' and Townships' businesses, residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota County. MCCD will dedicate one full time staff person based in Dakota County to provide the Technical Assistance Services ("Dakota OTB Staff'). In addition, MCCD will make available the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open to Business Program. Technical assistance includes, but is not limited to, the following: > Business plan development > Feasibility analysi. ➢ Marketing ➢ Cash flow and other financial projection development IOperational analysis City and e licensing and r gulatory assistance II > Loan p ing, nd other assistanc obtaining financi > Help i taining petent 111 ce 411 MCCD Dakota OTB Staff will be available to meet clients at the CDA office building, various Municipality city halls or at the client's place of business. During the COVID-19 pandemic, MCCD Dakota OTB staff will only meeting clients in-person if the MCCD Dakota OTB staff are comfortable; otherwise, client meetings will be held virtually and/or on the phone. Open To Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD's Emerging Small Business Loan Program(see Exhibit C Small Business Loan Program Guidelines below). MCCD also provides it's financing in partnership with other community lenders,banks or Local Government Entities interested in making capital available to residents and/or businesses in their community. Ribbon Cuttings & Grand Openings MCCD Dakota OTB staff will assist the CDA and Local Government Entities with the coordination of ribbon cuttings and grand openings for Program clients within Dakota County who wish to participate to ensure that all Program clients receive the option of this introduction into their communities. Coordinating efforts may include promoting the event, finalizing date/time of event with Program client, sending out invitations, and taking photographs. 9 EXHIBIT C Small Business Loan Program Guidelines Loan Amounts: • Up to $25,000 for start-up businesses • Larger financing packages for established businesses • Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: • Borrowers must be a"for-profit"business. • Business must be complimentary to existing business community. vs • Borrowers must have equity injection as determined by fund managemen . Ali4able Use of Proceeds: Ilk Loan proceeds can be used for working capital ' ventory, lding and equipm and general business operations. Interest Rates: A ill • Loan interest rate is dependent on use, term and other fact not to exceed 7% Loan Term Length: ii 4 • Loan repayment terms will generally range from three to five years, but may be substantially longer for major asset financing such as commercial property. Fees and Charges: • Borrowers are responsible for paying all customary legal and other loan closing costs. 10 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C Contract for Services for the Open To Business Program THIS AGREEMENT is dated December 29, 2023, and is between the Dakota County Community Development Agency("CDA") and Metropolitan Consortium of Community Developers, a Minnesota nonprofit corporation("MCCD"). WHEREAS, the CDA, on behalf of itself and the 11 political subdivisions of the State of Minnesota listed on Exhibit A hereto (the "Local Government Entities"), which each have powers with respect to a city with a population over 10,000 (collectively the "Municipalities"), wishes to engage MCCD to render services under the model known as "Open To Business,"a program providing small business technical assistance and capital to existing businesses and residents and other parties interested in opening a business within Dakota County(the "County") (the"Program"); and WHEREAS, MCCD has successfully provided the services required to administer and carry out the Program in Dakota County from 2013 —2023; and WHEREAS, pursuant to CDA Resolution No. 23-6776, adopted on December 19, 2023, (the "Resolution"), the CDA is authorized to enter into this agreement with MCCD for the Program; and WHEREAS, pursuant to the Resolution and certain joint powers agreements to be entered into between the CDA and the Local Government Entities (the "Joint Powers Agreements"), the CDA will act as fiscal agent for the Local Government Entities in connection with this Agreement; and WHEREAS,the CDA will pay from its own funds 50 percent of the fee charged by MCCD for the Program in the Municipalities and 100 percent of the fee charged by MCCD for the Program in the small cities and townships within the County with populations less than 10,000 residents ("Small Cities and Townships"), as further described herein and in Exhibit A; and WHEREAS, pursuant to the Joint Powers Agreements, the Local Government Entities will be required to pay a Participation Fee to the CDA in accordance with the schedule in Exhibit A, representing the remaining 50 percent of the fee charged by MCCD for the Program in the Municipalities. Now therefore, for good and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows: TIME OF PERFORMANCE The term of this Agreement and the period during which MCCD will provide services hereunder will commence upon the first day of January 2024, and automatically renew January 1, 2025, and January 1, 2026. This agreement will terminate on December 31, 2026, 1 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C subject to earlier termination as provided herein. MCCD will perform the services necessary to carry out the Program as promptly as possible, and with the fullest due diligence. COMPENSATION The CDA will compensate MCCD annually for its services hereunder an amount equal to One Hundred Sixty-Five Thousand Dollars ($165,000) ("Contract Amount"). The CDA will pay such an amount in two equal installments, the first no earlier than March Pt and the second no earlier than September 30th, upon receipt of invoices from MCCD. Subject to the limits above, payments will be due within 15 days of receipt of the respective invoices. The portion of the Contract Amount payable from Participation Fees will be payable by the CDA only from and to the extent such Participation Fees are paid by the respective Local Government Entities. In the event a Local Government Entity does not pay the CDA its Participation Fee in amounts and by deadline described in Exhibit A, the CDA will notify MCCD, and MCCD will immediately cease the Program in that Municipality. Upon such termination, the Contract Amount will be reduced by an amount equal to the Participation Fee which such Local Government Entity did not pay and the amount the CDA would have paid as a matching payment. SCOPE OF SEVICES MCCD will provide technical assistance and access to capital to existing businesses, residents and those parties interested in starting a business in any of the Municipalities, Small Cities, and Townships within Dakota County as further described on Exhibit B and Exhibit C hereto, which sets forth the Dakota Open To Business Program Scope of Services. REPORTING MCCD will submit quarterly reports to the CDA and Municipalities in form and substance acceptable to the CDA and Municipalities. Reports will provide information in the agreement for County and will include a sub-report for each Municipality and each of the Small Cities and Townships Reports will include the following information: > Number of inquiries, entrepreneurs, and businesses served > Hours of technical assistance provided > Hours of dedicated program(including but not limited to—city initiatives,program outreach, public events, city meetings, research, client follow-up, general inquiries) > Type of business/industry > Annual sales revenue > Number of businesses opened > Number of businesses expanded/stabilized 2 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5ABDC ➢ Number and amount of financing packages ➢ Demographic information on entrepreneurs ➢ Business city and/or resident city The required reporting schedule is as follows: 1St quarter January—March, report due April 30th 2nd quarter April—June, report due July 31 St 3rd quarter July—September, report due October 31st 4th quarter October—December, report due January 31St In addition to the foregoing, MCCD will provide additional reports as reasonably requested by the CDA or Local Government Entities. Client confidentiality being a core component of the service model, MCCD will not typically report specific client/business information in its regular reporting, However, with permission from the client, MCCD will produce profiles of successful clients for publication dissemination and media release. PERSONNEL MCCD represents that it has, or will employ or contract for, at its own expense, all personnel required to perform the services necessary to carry out the Program. Such personnel will not be employees of, or have any contractual relationship with, the County, the CDA, or any of the Local Government Entities. No tenure or any other rights or benefits, including worker's compensation,unemployment insurance, medical care, sick leave, vacation pay, severance pay, or any other benefits available to County, CDA, or any of the Local Government Entities' employees shall accrue to MCCD or employees of MCCD performing services under this Agreement. MCCD is an independent contractor. All of the services required to carry out the Program will be performed by MCCD and all personnel engaged in the work shall be fully qualified and shall be authorized or permitted under State and local law to perform such work. Natalie Mouislo shall be the dedicated MCCD Program advisor for the County, CDA, and Local Government Entities for the duration of this Agreement. If there are material l changes to Ms. Mouilso's position with MCCD during the time of this Agreement, the CDA will be informed by MCCD immediately. 1 Material is defined as any event or events that would prohibit Ms.Mouislo from being the full-time Program Advisor for Dakota County. 3 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C USE OF CDA OFFICE SPACE The CDA will make available a cubicle space for MCCD personnel at the CDA office building for use by MCCD in carrying out the Program. MCCD personnel will have access to the CDA meeting rooms, wireless internet services, copy machines, and printers. MCCD personnel shall comply with all CDA office rules and policies regarding the use of CDA office space, equipment, and internet access. If the CDA, in its sole direction, determines that MCCD personnel has failed to comply with CDA office rules and policies, MCCD personnel will be required to vacate the CDA office and the CDA will cease to provide MCCD office space to carry out the Program. INTEREST OF MEMBERS OF THE CDA AND OTHERS No officer, member, or employee of the CDA and no member of its governing body, and no other public official or governing body of any locality in which the Program is situated or being carried out, who exercises any functions or responsibilities in the review or approval of the undertaking or carrying out of the Program, will participate in the decision relating to this Agreement which affects he/she is, directly or indirectly, interested or has any personal or pecuniary interest, direct or indirect, in this Agreement. ASSIGNABILITY MCCD will not assign any interest in this Agreement and will not transfer any interest in the same without the prior written approval of the CDA. COMPLIANCE WITH LOCAL LAWS MCCD agrees to comply with all federal laws, statutes, and applicable regulations of the State of Minnesota and the ordinances of the Local Government Entities. INSURANCE General Terms. In order to protect itself and to protect the CDA under the indemnity provisions set forth above Contractor shall, at Contractor's expense, procure and maintain a policy of Professional Liability(PL) insurance covering the term of this Contract. Such policy of PL insurance shall apply to the extent of, but not as a limitation upon or in satisfaction of, the indemnity provisions herein. All retentions and deductibles under such policies of insurance shall be paid by Contractor. Each such policy of insurance shall contain a clause providing that such policy shall not be cancelled by the issuing insurance company without at least 30 days' written notice to the CDA of intent to cancel. Certificates. Prior to or concurrent with execution of this Contract, Contractor shall file certificates of such policies of insurance with the CDA. Failure to Provide Proof of Insurance. The CDA may withhold payments or immediately terminate this Contract for failure of Contractor to furnish proof of insurance coverage or to comply with the insurance requirements as stated above. INDEMINFICATION MCCD agrees to defend, indemnify, and hold harmless the County, the CDA, the Local Government Entities, and each of their respective officials, agents, volunteers and employees 4 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C from any liability, claims, causes of action,judgements, damages, losses, costs, or expenses, including reasonable attorney's fees, resulting directly or indirectly from any act or omission of MCCD, its subcontractors, anyone directly or indirectly employed by MCCD or any if its subcontractors, and/or anyone for whose acts and/or omissions MCCD may be liable in the performance of the services required by this Agreement, and against all loss by reason of failure of MCCD to perform any obligation under this Agreement. NOTICES A notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by mail,portage prepaid, return receipt requested, or delivered personally; and (a) In the case of MCCD is addressed or delivered personally to: Tyler Hilsabeck Metropolitan Consortium of Community Developers 3137 Chicago Avenue South Minneapolis, MN 55407 (b) In the case of the CDA is addressed or delivered personally to: Lisa Alfson, Director of Community and Economic Development Dakota County Community Development Agency 1228 Town Centre Drive Eagan, MN 55123 Or at such other address with respect to any party as that party may designate in writing and forward to the other as provided in this Section. MODIFICATION This Agreement may not be modified, changed, or amended in any manner whatsoever without the prior written approval of all the parties hereto. NON-DISCRIMATION In connection with its activities under this Agreement, MCCD will not violate any Federal or State laws against discrimination. DEFAULT AND CANCELLATION Failure of the MCCD to perform any of its obligations under this Agreement to the satisfaction of the CDA will constitute in a default hereunder. If a default occurs, MCCD will have 60 days to cure any and all defaults and come into compliance with this Agreement. MCCD will immediately notify the CDA of any default. MCCD and the CDA will develop agreed upon milestones that must be met within the 60- day period to avoid cancellation of this Agreement. 5 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C The primary default would be the loss of Ms. Mouilso as the dedicated MCCD Program advisor. If Ms. Mouilso is no longer the dedicated MCCD Program advisor, MCCD will be expected to meet the following milestones within the 60-day period— 1. MCCD will inform the CDA within 48 hours of Ms. Mouilso's employment departure notice. 2. The name and contact information of the interim MCCD Program advisor for Dakota County will be shared with CDA and Local Government Entities within three business days of Ms. Mouilso's departure notice. 3. MCCD will continue to actively work with Dakota County clients on a full-time basis in the event of a default and respond to client communication in a timely manner as defined elsewhere in this Agreement. 4. MCCD will continue to track and input client data to ensure the quarterly report is accurate when generated(see REPORTING section, page 2, for details). 5. MCCD staff, including the interim MCCD Program advisor, will meet with CDA staff weekly (at a minimum)to provide updates on clients, Program work in Dakota County, etc. Local Government Entities will be invited to these meetings. 6. MCCD will continue to actively market the MCCD Program in the same capacity as prior to the default. 7. Hiring a new dedicated MCCD Program advisor for Dakota County is not expected within 60 days of the default; however, steps to secure a new, qualified, full-time MCCD Program advisor will occur within the 60 days. Steps taken to secure a new advisor will be regularly communicated to CDA. If a default is not remedied in 60 days, and/or the agreed upon milestones are not met within the 60 days, the CDA may cancel this Agreement in its entirety by five additional days' written notice to MCCD. MINNESOTA LAWS GOVERN The Laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the State of Minnesota. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 6 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY DocuSigned by: '_ B �l�A,u'�'l�.c.v.y' Dro2Ars7Dc72ac[... Tony Schertler, Executive Director Date: 12/29/2023 MCCD DocuSfgned by: By: ttAAA,H /Ga4.V/t,V' Printed Name: Elena Gaarder Printed Title: Chief Executive Officer 12/29/2023 Date: DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5ABDC Exhibit A 2024, 2025 & 2026 Local Government Entity Annual Participation Fee Schedule Municipality Local Government Total CDA Local Government Entity Fee Share of Entity Participation Fee Fee Lakeville City of Lakeville $21,380 $10,690 $10,690 Eagan Eagan Economic Development $21,280 $10,640 $10,640 Authority Burnsville Burnsville Economic $21,000 $10,500 $10,500 Development Authority Apple Valley Apple Valley Economic $18,000 $9,000 $9,000 Development Authority Inver Grove Inver Grove Heights Economic Heights Development Authority $14 000 $7,000 $7,000 Rosemount Rosemount Port Authority $11,300 $5,650 $5,650 Farmington Farmington Economic $11,000 $5,500 $5,500 Development Authority Hastings Economic Hastings Development and $11,000 $5,500 $5,500 Redevelopment Authority South St. Paul South St. Paul Economic $10,800 $5,400 $5,400 Development Authority West St. Paul West St. Paul Economic $10,800 $5,400 $5,400 Development Authority Mendota City of Mendota Heights $6,000 $3,000 $3,000 Heights Small Cities n/a $8,440 $8,440 $0 and Townships Total $165,000 $86,720 $78,280 8 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C Exhibit B Dakota Open To Business Program Scope of Services Open To Business ("OTB") Technical Assistance Services MCCD will provide intensive one-on-one technical assistance to Municipalities' and Small Cities' and Townships' businesses, residents and aspiring entrepreneurs intending to establish, purchase, or improve a business in Municipalities and Small Cities and Townships within Dakota County. MCCD will dedicate one full time staff person based in Dakota County to provide the Technical Assistance Services ("Dakota OTB Staff'). In addition, MCCD will make available the expertise of all MCCD technical and support staff in the delivery of services to Dakota Open to Business Program. Technical assistance includes, but is not limited to, the following: > Business plan development > Feasibility analysis > Marketing > Cash flow and other financial projection development > Operational analysis ➢ City and State licensing and regulatory assistance ➢ Loan packaging, and other assistance in obtaining financing ➢ Help in obtaining competent legal advice MCCD Dakota OTB Staff will be available to meet clients at the CDA office building, various Municipality city halls, County libraries, or at the client's place of business. Client meetings may also be held virtually and/or on the phone. Open To Business Access to Capital Access to capital will be provided to qualifying businesses through MCCD's Emerging Small Business Loan Program (see Exhibit C Small Business Loan Program Guidelines below). MCCD also provides it's financing in partnership with other community lenders, banks or Local Government Entities interested in making capital available to residents and/or businesses in their community. Ribbon Cuttings & Grand Openings MCCD Dakota OTB staff will assist the CDA and Local Government Entities with the coordination of ribbon cuttings and grand openings for Program clients within Dakota County who wish to participate to ensure that all Program clients receive the option of this introduction into their communities. Coordinating efforts may include promoting the event, finalizing date/time of event with Program client, sending out invitations, and taking photographs. 9 DocuSign Envelope ID:743DDAE5-4022-44F9-A734-05B673C5AB0C EXHIBIT C Small Business Loan Program Guidelines Loan Amounts: • Up to $25,000 for start-up businesses • Larger financing packages for established businesses • Designed to leverage other financing programs as well as private financing provided by the commercial banking community. Eligible Projects: • Borrowers must be a"for-profit"business. • Business must be complimentary to existing business community. • Borrowers must have equity injection as determined by fund management. Allowable Use of Proceeds: • Loan proceeds can be used for working capital, inventory, building and equipment and general business operations. Interest Rates: • The loan interest rate is dependent on use, term and other factors, not to exceed 7%. Loan Term Length: • Loan repayment terms will generally range from three to five years but may be substantially longer for major asset financing such as commercial property. Fees and Charges: • Borrowers are responsible for paying all customary legal and other loan closing costs. 10 i11 mccD Metropolitan Consortium OPEN of CommunityDevelopers TO BUSINESS Business Advisor for Dakota County: Natalie Mouilso, nmouilso@mccdmn.org, 952-451-6390 Q4 2023 ending 12.31.2023 Clients Served YTD Client Inquiry 4 Existing-Challenged 19 Existing-Opportunity 45 Pre-start planning 57 Start-up 43 Total 168 Business Owner Demographics YTD Low-Income Owned 63 BIPOC or Immigrant Owned 86 Woman Owned 82 Financing&Access to Capital YTD Approved (YRLY Total) $ 604,855.00 Equity (YRLY Total) $ 751,362.00 Facilitated (YRLY Total) $3,166,022.00 Program Hours TA Program HRS 1st QTR 382.00 159 2"d QTR 299.75 213 3rd QTR 293.25 223 4th QTR 290.25 179 Total 1,265.25 774 TA: Client Meetings, Providing Resources, Client Calls, Client Deliverables, Loan Packaging Program HRS: City Initiatives, Program Outreach, Public Events, City Meetings, Research, Data/Admin, General Inquiries Dakota County Q4 Report 12.31.2023 Industry Segment YTD Construction/ Real Estate 5 Food 27 Health/Fitness 16 Manufacturing 2 Consulting 11 Retail 32 Service 39 Technology 3 Wholesale/ Distribution 3 Other/TBD 13 Total 168 Referral Source YTD Bank Referral 21 Entrepreneur 8 Friends and Family 20 Municipality 50 MCCD Partner/Staff 14 Other 48 Web 7 Total 168 City YTD Business Resident Apple Valley 22 15 Burnsville 20 18 Eagan 22 23 Farmington 13 16 Hastings 15 11 Inver Grove Heights 10 10 Lakeville 19 26 Mendota Heights 1 1 Rosemount 12 13 South St. Paul 6 7 West St. Paul 9 7 Other Dakota Co. 0 2 Other/ No Data 19 19 2 Dakota County Q4 Report 12.31.2023 Direct Financing&Access to Capital Business Type:Thai Grocery Store—Updated Q3 Business Locations: Burnsville &South Saint Paul Owner Residence: Woodbury Referred by: Bank Partner& City of South Saint Paul MCCD Financing: $125,000 Owner Equity: $196,391 Other Financing: $2,455,472 Overview: MCCD approved gap financing for a BIPOC-owned business expansion. The owners currently operate a Thai grocery store in Burnsville and are expanding the business to include a new wholesale and distribution business line with a second location in South Saint Paul to include extra storage for the grocery inventory as well as a deli walk up window. The project is the development of a multitenant building which will include space for two additional tenants. MCCD financing will be utilized for construction costs. Update: After this loan was initially approved in Q1 2023 an adjustment to the total project costs increased the project size from $1,920,000 to$2,455,472. The loan was reapproved by MCCD in August and closed in September 2023. Business Type: Financial Advisory Business Location: Hastings& Lakeville Owner Residence: Lakeville Referred by: Bank Partner MCCD Financing: $204,000 Owner Equity: $46,000 Other Financing: $255,000 Overview: MCCD approved permanent term financing for a commercial real estate purchase by a growing financial advisory business based in Lakeville with a second location in Hastings.The project was brought to MCCD via a bank partner and the real estate transaction is part of a larger business expansion plan and ownership transition for the Hastings location. The real estate purchase and eventual business purchase will retain 6 full-time jobs and create 1 new full-time position. Business Type: Hair Braiding Salon Business Location: Eagan Owner Residence: Eagan Referred by: MCCD Community Partner MCCD Financing: $25,000 Owner Equity: $21,000 Overview: MCCD approved financing for this immigrant owned start-up hair braiding salon business.The owner has been working in the industry for nearly 10 years, always renting chairs at other salons, and splitting her profits with the salon owner. With startup capital provided by MCCD she will be able to open her own space in Eagan, expand her clientele, and build wealth for herself and her family. In addition to braiding services,the salon will have two rental chairs available and will sell high-quality products that cater to the Black and African community in the area. 3 Dakota County Q4 Report 12.31.2023 Business Type:Adult Daycare Homes and Services Business Locations: Business Office in Burnsville with homes owned in Inver Grove Heights (2), Apple Valley(1), Farmington (1), Crystal (1),and newest location in New Hope (1) Owners Residences: Eagan & Prior Lake Referred by: Bank Partner MCCD Financing: $37,200 Owner Equity: $37,200 Bank Financing: $297,600 Overview: MCCD partnered with Amplio and a local bank on this real estate transaction for a growing adult daycare and homecare business. Our participation (which is considered equity by the SBA) at 10%of the total project costs allowed the business owners to meet Amplio's 20%equity requirement and retain much needed working capital in the business. Through the real estate purchase,the owners are adding a new residential home in New Hope, MN to the existing roster of home care facilities where the business operates throughout the Twin Cities region. One of the business's owners is Native American and the new location will create new opportunities for the community of New Hope. Business Type:Trucking Business Location: Hastings Owner Residence: Hastings Referred by: Bank Partner MCCD Financing: $25,000 Bank Financing: $44,450 Owner Equity: $16,545 Overview: MCCD approved financing for this startup transportation business. This industry veteran has worked for decades driving trucks for other businesses. He finally took the leap to establish himself as an owner operator in January 2023 when he approached his bank about his business idea. The bank referred him to OTB to help with a business plan and financial projections. After a few months of planning the project was ready to move forward in July. This new business will create one job for the business owner, who is a low-income individual, and allow him the opportunity to build wealth for himself and his family. Business Type: Restaurant Business Location &Owner Residence: Inver Grove Heights Referred by: Community Outreach MCCD Financing: $110,000 Partner Financing: $110,000 Owner Equity: $129,490 Overview: MCCD approved financing for this immigrant owned business expansion in Inver Grove Heights in July 2023. This full-service, family-owned Mexican restaurant has been a community staple in IGH since 2015 with a solid local following. The business embarked on an expansion to a larger location in 2021 but due to unforeseen costs and logistics,the project had been stalled for quite a while. Having exhausted their available funds,the owners were stuck paying rent at both locations with a partially completed renovation. The business connected with MCCD advisor Vicky Gonzalez in summer of 2022 at a community event and she worked tirelessly to find a path forward for this family business. MCCD brought in a non-profit lending partner and together the organizations collaborated on the final funding package. The business has three existing employees and when the expansion is complete,three new jobs will be created. 4 Dakota County Q4 Report 12.31.2023 Business Type: Restaurant Business Location: Apple Valley Owner Residence: Rosemount Referred by: Municipality MCCD Financing: $67,935 Owner Equity: $290,000 Overview:This husband-and-wife team of seasoned entrepreneurs contacted OTB for startup financing to complete leasehold improvements and provide working capital. After years of successfully operating a sushi franchise, the business owners decided to start a new food business which could appeal to a wider variety of customers. The new restaurant is in a prime retail and commercial area of Apple Valley and will serve fried fish, seafood, and chicken, as well as sandwiches, fried fish tacos, and freshly hand cut fries. This immigrant owned business opened January 11, 2024, and created two full time jobs for the owners and two part time jobs for kitchen helpers. Business Type: Hair Braiding Salon Business Location: Apple Valley Owner Residence: Lakeville Referred by: Bank Partner MCCD Financing: $10,000 Owner Equity: $5,500 Overview:This business owner was referred to OTB by Royal Credit Union, Apple Valley. The business was poised for growth although the owner did not have the working capital on hand to bring in new products and make important equipment upgrades. With a loan from MCCD the business will be able to book new services and raise prices, increasing income for the owner and her family. As a single parent of four children,this hard- working and dedicated business owner is now set up for success in 2024. Credit Builder Loans In collaboration with nonprofit partners who provide credit building&financial awareness counseling, MCCD provides $240 Credit Builder Loans (CBLs)to qualified applicants seeking to improve their personal credit. Credit Builder applicants complete financial training through MCCD's partners and are then referred to MCCD for a CBL. MCCD generates and services the CBLs in-house. 2023 Credit Builder Loans YTD Resident City Loan Amount Rosemount $240 West Saint Paul $240 West Saint Paul $240 TOTAL $720 Business Grants Business Type: Driving School Business Location: Apple Valley Referred by: Google Search MicroGrant: $3,500 (Grant Application Facilitated by MCCD) Owner Equity: —$10,000 5 Dakota County Q4 Report 12.31.2023 Overview: This low-income, women business owner learned of the Open to Business program by searching online for resources. After working as a driving instructor for a few years and falling in love with the work,this entrepreneur recognized the opportunity to establish her own school. After pouring every spare dollar into the startup costs,the business owner had a gap of—$3,000 which MCCD was able to fill through a MicroGrant. The grant covered the remaining costs for equipment, supplies, and technology. With the additional funding the business owner opened her doors in June with a fully equipped classroom space. As the head of a household with 6 children,this business owner is on the path to building a strong business and a successful future. Highlights, Networking,&Outreach Funding& Policy Updates • November 9—Along with clients and partners, MCCD held our Annual Meeting to celebrate collective community impact. Read the accompanying Annual Report which summarizes achievements in policy, advocacy,field building, small business development, lending, and shared ownership. • December 13—MCCD was recognized as a recipient of DEED's Small Business Assistance Partnership Grant designed to support organizations dedicated to empowering BIPOC entrepreneurs and small business owners. Programming, Partnerships,&Trainings • October 10—The Open to Business team participated in the first annual teambuilding retreat. The team gathered to reflect on 2023 and look ahead to 2024. • November 8—In partnership with accounting firm Tax Actions of Minneapolis, MCCD hosted a bookkeeping and accounting Q&A webinar. The event provided an overview of bookkeeping practices for small businesses as well as a Q&A section. • November 14—MCCD, alongside Mni Sota Fund and Shared Capital Cooperative, collaborated with the MN Small Business Administration District Office to organize a Capital Strategies Symposium to discuss constructing a more inclusive finance system. The event featured remarks by Geri Sanchez Aglipay, Regional Administrator, SBA, Neela Mollgaard, Executive Director, DEED Office of Small Business Innovation, and St. Paul Mayor Melvin Carter. • November 17—In partnership with the UMN Law School, MCCD hosted a Small Business Law Q&A webinar where legal experts provide transaction-based legal assistance to small businesses on a variety of subject matters including entity formation, owner distributions, and commercial lease review. • December 1—MCCD rolled out a Holiday Shopping Guide which featured clients and businesses in our community. • January 19—Join the Open to Business team as we host our first in person Small Business Planning Workshop of 2024 at the MCCD Office. The training is open to entrepreneurs throughout the region and will provide attendees with the tools and resources needed to write a business plan. Advertising&Outreach • Banker and lender outreach occurred specifically with Merchants Bank, Minnwest Bank, Northeast Bank, Royal Credit Union, Scale Bank, Sunrise Bank,Think Bank, and US Bank. 6 Dakota County Q4 Report 12.31.2023 • Written or in-person presentations were made and/or networking efforts were made including Minnesota Minority Goods&Services Association on October 3, CMDC Business Financing on October 16, West Saint Paul Workforce Development Center on October 20, St.Thomas Small Business Development Center on November 20, Dakota County Bi-Monthly City/County Meeting on December 14. Regular updates/meetings occurred with the Workforce Development Board's Business Services/Economic Development Committee, the University of MN Law School, Dakota County CDA, the City of Burnsville,the City of Eagan, and the City of Farmington. • The Open to Business advertisement library is up to date with the most recent ads and flyers for OTB.Access the Ad Library here. Client Highlight Meet Mireya Sanchez, owner of El Rincon Mexicano of Inver Grove Heights. This full-service,family-owned Mexican restaurant has been a community staple in IGH since 2015 with a solid local following. The business serves healthy, freshly prepared, and unprocessed food and even has a vegetarian menu! Mireya started the business when she felt called to sell her enchiladas to the community. As the business grew, Mireya looked to expand to accommodate additional dining spaces for both customers as well as her employees during their lunch breaks. The business embarked on an expansion to a larger location in 2021 but due to unforeseen costs and logistics,the project stalled. Having exhausted available funds, she was stuck paying rent at both locations with a partially completed renovation. The business connected with MCCD advisor Vicky Gonzalez in summer of 2022 at a community event and Vicky worked tirelessly to find a path forward providing in-depth technical assistance and sound professional resources. MCCD brought in a non-profit lending partner and together the organizations collaborated on the final funding package. MCCD approved financing in July 2023.The business has three existing employees and when the expansion is complete,three new jobs will be created. "MCCD has helped where I couldn't and wouldn't. It's important that other Hispanic and other Latin people know about MCCD's existence."-Mireya, Owner of El Rincon 0 I aill ,,---..:11 - F �_0, ► ) -K ,41 "'u , ,, . :407/Sibiov. 4:1112 . .... . : 446, • Mireya Sanchez,Owner of El Rincon Mexicano,Inver Grove Heights 7 12/20/2024 mil. ni , ‘,. , . All - M CC D Metropolitan Consortium of Community Developers . _ jr4i,_____________, OPEN TO � BUSINESS Y Apple Valley - January 2024 \---- i EN \ s a Or t ''''; .i�� ID BUSINESS I 1 Technical Assistance prick-nn-nna RI Iciness Advising — Dakota County 168 businesses served; 1 ,265 TA Hours 60% startups / 40% existing businesses • 49% Women-owned; 51 % BIPOC-owned; 38% Low- wealth owned Referrals • 38% from banks, partners, word of mouth • 30% from web or other sources • 33% from cities or CDA 2 1 12/20/2024 Technical Assistance One-o .-.ne Advising — Apple Valley 29 businesses served; 250 TA Hours • 76% startups / 24% existing businesses • 41 % (12) Women-owned; 72% (21 ) BIPOC-owned; 38% (11 ) Low-wealth owned; 21 % (6) all three Referrals • —45% from banks, partners, word of mouth • —28% from web or other sources OMCCD • —28 /° from municipality 3 Lending & Access to Capital Approvea airect loans, facilitated capital, microgrants Dakota County • $604,855 in direct MCCD lending • $751 ,362 in owner equity • $3, 166,022 in access to capital • $5.23 leveraged for every $1 .00 from MCCD • MCCD's average portfolio interest rate is <5% • MCCD's interest rate is capped at 7%, includes startups 4 2 12/20/2024 Lending & Access to Capital Approvr. . .iirect loans, facilitated capital, microgrants Apple Valley • $115, 135 in direct MCCD lending • $342,700 in owner equity • $301 , 100 in access to capital • $2.60 leveraged for every $1 .00 from MCCD IWMCCD 5 Lending & Access to Capital Approvea airect loans, facilitated capital, microgrants • Home Care Services — Apple Valley, Burnsville, Eagan, Farmington, IGH (Q1 ) • Driving School — Apple Valley (Q2) • Fish & Chips Restaurant — Apple Valley (Q4) • Hair Salon — Apple Valley (Q4) • Pizza Restaurant — Apple Valley (Q1 2024 projected) Ii IVRA.V 6 3 12/20/2024 Client Highlights Hot Seat Driving School, Apple Valley • Certified driving instructor , sf, • Opened in May 2023 • Microgrant for equipment, supplies, and technology • Leveraged with equity investment from business owner MCCD 7 Client Highlights riot Sear uriving JLiiuol, Apple valley Thank you to Natalie Mouilso and Open to Business for all the hard work and guidance as I embarked on the journey of starting my own business. Natalie's expertise and advice are invaluable as she provided me with practical solutions and suggestions that helped me navigate through the challenges of starting a business. MCCD 8 4 12/20/2024 Client Highlights MN Fish & Chips, Apple Valley • Seasoned entrepreneurs • Opened January 2024 - 1,,,,il• Fundingfor tenant improvements , .� :, `'� ■` t & working capital • ma l a WMCCD 9 Client Highlights ivini Fish a .rIIpb, !Apple Valley THANK YOU VERY MUCH for your kind help, MCCD and all loan committee members. I could not go forward with my business without your help. The MCCD loan helped me to pay for the final construction payment and start the business on time. MCCD is the best support for community and small business owners. The loan process was fast and smooth from start to finish, I believe it is because of your knowledge, experience and guidance. I also learned so many things from you for my business. I really appreciate it. MMCCD Zo 5 12/20/2024 Client Highlights Hair Salon, Apple Valley • Opened in early 2023 • Business was poised for growth • Capital needed for new equipment & inventory • New services & price increase MCCD 11 Client Highlights hair Salon, Apple valley I like to remind myself that even if I get 50 No's, that 1 yes can make a difference in my life. Natalie was absolutely heaven sent with assisting me close my first Business Loan! She knew how important this was to me. Although the Holidays were just a week out, and she was busy with other clients, she made sure to treat me and my business as a top priority. In that I am forever grateful ... WMCCD 12 6 12/20/2024 Client Highlights Hair Salo., Apple Valley ... The process was fast and smooth. She was straight to the point and absolutely pleasant. This loan is going to place my business in a position to reach my next Financial goal, while being able to provide luxurious and relaxing services to all of my clients. NATALIE, YOU ARE APPRECIATED MORE THAN YOU KNOW! Thank you for believing in a vision that once started out as a dream! MCCD 13 Outreach & Updates • Local lending partners — Merchants, Old National, Royal Credit Union, Think Bank, US Bank • DEED's Small Business Loan Participation Program • SBA PRIME award for disadvantaged MEs • Bookkeeping webinars & Law Q&A webinars • Business Resource Newsletter • Expanded office hours, now available 5 days per week • In person client meetings at local libraries C]MCCD 14 7 12/20/2024 Looking Ahead • 2024 OTB lending goal is $3,000,000 • Keeping interest rates capped at 7% • Focus on client work & increasing accessibility • Quarterly business planning & QuickBooks workshops at MCCD Office • Continue with outreach & advertising • Spring/Summer AV Newsletter Ad forthcoming MMCCD 15 MCCD Contact Us p Metro olitan Consortium of Community Developers (612) 789-7337 OPEN info@mccdmn.org TO BUSINESS 3137 Chicago Ave, Language Assistance Minneapolis, MN 55407 Our business advisors speak English, Spanish, Somali, and Hmong. www.mccdmn.org 16 8 • ITEM: 4.D. • •• ••• ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Regular Agenda Description: Review, Discuss and Direct Staff on Potential Sale and Development of EDA Owned Property- 15584 Gaslight Drive Staff Contact: Department/ Division: Tim Benetti, Community Development Director Community Development Department ACTION REQUESTED: Planning staff is seeking discussion and direction from the EDA on how to proceed with a request from a developer interested in acquiring and developing the Minnesota Valley Transit Authority (MVTA) Transit Hub - Park & Ride site, located at 15584 Gaslight Drive. This property is commonly referred to as the "Gaslight Site." SUMMARY: The Gaslight Site is generally located at the southeast corner of 155th Street W. and Gaslight Drive; and south of the main MVTA Transit Hub and parking ramp structure. The subject property consists of 3.1 acres. The site is guided "SIHD" (Suburban Intensive High Density Residential"; and is currently in the PD-507 District, Zone No. 2. The SIHD land use guidance allows for high-density residential developments between 24 to 48 units/acre; and "Apartment buildings" of two stories or more and served with full city services, are considered a permitted use under the PD-507/Zone 2. The site is currently operated, maintained and leased by the MVTA as an individual park- and-ride facility. The park-and-ride site currently has an elongated shaped structure situated on the west edge of the site along Gaslight Drive, which serves as an on-site transit hub station. Before the end of 2023, planning staff met with a local developer specializing in housing projects, and this developer was seeking information on available sites in and around the City of Apple Valley for multi-family housing opportunities. The developer indicated a desire to provide affordable, workforce type housing for the community; and expressed an interest in acquiring the site directly from the city and begin the entitlement process and immediate site design of the site. The developer narrowed their focus on this Gaslight Site due in part to its proximity to similar housing uses, retail/food establishments, and the large bus transit station to the north. Although the developer did informally discuss with staff the idea of a new high- density apaitiiient complex and accompanying townhomes, no specific concept or site development plan was submitted to the city. Planning staff will also note that prior to contact with this developer, we have received periodic inquiries and previous requests from other developers or real estate groups interested in developing this Gaslight Site, with similar high-density housing or other retail/commercial uses. As of this date, none of the other developers have submitted an official letter of request, sketch plan or any related offer to purchase or develop the subject site. If the EDA were to approve the sale and transfer of this property to a third-party group, the EDA would receive proceeds from the sale of the property, and the property would later become a taxable, revenue generating parcel. The process or options affiliated with the selling of or transferring city-owned lands can be somewhat complex. Options may include: 1. EDA may direct staff to have an official appraisal performed on the subject property in order to determine the true (and fair) market value of the parcel. 2. Upon completion of the appraisal, the EDA may direct staff to either: a. begin negotiations and work directly with the developer that has expressed their interest in acquiring and developing the site with new housing; b. direct staff to market and offer the land for sale on the local real estate market, and review and present offers back to the EDA Board as they become available; or c. direct staff to prepare and advertise for a general Request for Proposals (RFP) on the property, with certain site design parameters and standards, including an established minimum price (as determined by the appraisal); whereby after all RFP's have been submitted, staff can present and review those proposals to the EDA Board (typically in a closed session), whereby the EDA can choose a preferred design or proposal, and direct staff to begin negotiations and work with the chosen developer. 3. Direct staff to cease all negotiations or contact with the proposed housing developer at this time; maintain city ownership of the property; and continue to honor the obligations of the lease agreement between the City and MVTA to operate the park-and-ride and hub station. Should the EDA Board decide to accept and authorize Option No. 1, planning staff would recommend the appraisal be managed by and submitted to the City Attorney, in order to keep the appraisal and value confidential until such time that a developer is selected, or to establish a minimum value within an RFP submittal package. Dakota County Community Development Agency (CDA) has informed city staff that there may be some special housing funds or financial assistance available to a developer that provides workforce/affordable housing on this site, due to its ideal location for such housing. Staff recommends the EDA Board consider that any future marketing or RFP submission narrative include language that specifies workforce (and/or affordable) housing development on this site. Also, the CDA has informed and recommended staff to consider the submission of a Brownfield Site Nomination application on this Gaslight Site, in order to complete a Phase I Environmental Site Assessment (ESA) of the property. The funds are from the U.S. Environmental Protection Agency but administered through the CDA. This Phase I would be paid by grant funds from the CDA and will be a valuable tool in determining if the site is impacted with any harmful contaminations or environmental issues that may need mitigation or clean-up (note: staff has no knowledge or reason to suspect the current site is impacted or has any issues at this time). The Phase I will help in efforts to market or sell the site if directed later. BACKGROUND: The Gaslight Site was originally acquired by the City of Apple Valley Economic Development Authority in 1997. In March 1999, the Apple Valley EDA and MVTA entered into a Lease Agreement, which approved the MVTA to improve and use the Gaslight Site for a park and ride site, with terms from January 1999 to December 2088 (90-year lease), which included a nominal $1.00 annual rent payment. The intent was to use this site for a 364-space park-and-ride lot with a small transit hub station for commuters. This park and ride lot was used extensively by a large number of local commuters, until a new parking ramp structure was completed in 2009 just to the north of this site. Even with the parking ramp, this site continued to receive heavy usage up until 2016 and through 2020, when the parking ramp received additional grant funds to expand two floors (for total of five levels). Since this ramp improvement in 2020, and largely due to the residual effects of the pandemic, the Gaslight park-and-ride site has seen a significant drop in riders or users from this site, and it remains virtually empty or under-utilized for this area. The termination clauses contained with the 1999 Lease Agreement provide the following: 16.1 Landlord (EDA) may terminate this Lease, if the City of Apple Valley ceases to be a member of a Joint Powers Agreement for Transit Services with the other cities that are members of Minnesota Valley Transit Authority upon giving Tenant written notice consistent with the notice required for withdrawal from the Joint Powers Agreement. 16.2 Tenant may terminate this Lease at any time during the term hereof by delivering to Landlord the following: (a) Any and all amounts due Landlord pursuant to the terms hereof (b) A Quit Claim Deed to the Leased Premises executed by Tenant, in a form and content reasonably acceptable to Landlord. (c) 60 days'written notice of termination of the Lease. 16.3 Upon termination of the Lease, whether terminated on the Termination Date of December 31, 2088 or prior to the Termination Date as provided in this Lease, Landlord shall reimburse Tenant and/or the Metropolitan Council or its successor the depreciated cost of capital repairs or improvements made or paid for as additional rent by Tenant. City records show that part of this Gaslight/Park-&-Ride site may have been acquired or improved with grant funds from both the US Government and State of Minnesota. In September 2010, the City Attorney prepared an internal memorandum of opinion to planning staff regarding the "MVTA-Gaslight Drive" site, particularly addressing the "grant funds" used to purchase and improve the Gaslight/P&R property. The question of two funding sources: (i) a $638,900 grant from the old ISTEA - Intermodal Surface Transportation Efficiency Act Program through the Feds; and (ii) a $920,000 grant from the Met Council, which required a restrictive covenant be issued or placed on the property for a period of 20 years. Per the attorney's opinion, the ISTEA funds contained no restrictions, while the State/Met Council funds restrictions ended in 2017; therefore allowing the EDA to remove any restrictive covenant and to convey the property or make use of the property in any manner without the consent of the Metropolitan Council. The City of Apple Valley has no intention of withdrawing our partnership or commitment to the Joint Powers Agreement. The Tenant (MVTA) has expressed an interest in cooperating with the City of Apple Valley in allowing the development of this Gaslight Site (especially with workforce housing), subject to the Metropolitan Council providing its approval or agreeing to have MVTA terminate the same lease agreement. As of the preparation of this memo report, the MVTA reps are still working with and seeking the approval of the Met Council to forgo any future interest in the Gaslight Site and allow the MVTA to terminate the lease agreement, thereby allowing the city to proceed with possible development of this site. It remains undetermined if the city or developer(s) of this site will be obligated to pay the depreciated costs of the improvements made to the site, especially the small transit hub station, parking lot, lights, etc. It is anticipated that any new appraisal performed on the site will account for or provide value to these improvements, and the EDA can negotiate directly with MVTA/Met Council on any reimbursement, if requested by MVTA. Staff will also review or request additional legal opinions on any reimbursement that may be included or made part of any future purchase agreement or related agreement. BUDGET IMPACT: Should the EDA elect to proceed with the sale of this property, City's EDA would receive proceeds from the sale of the property, and it would become a taxable parcel. Any new high- density housing development would also likely generate added and considerable real estate tax revenue for the community. ATTACHMENTS: Area Map Comp Plan Map Zoning Map Exhibit Photo 15584 GASLIGHT DRIVE pow— •r-4 - halbr .s., —v•-••• Air. • '. Lirf i i L` ), 4� i �_ _' �, i'i . . . , 4 !, L L,' i i, r ,,. .__:,......1 , / . , 4 , ,,,f: s 'LRIIrSm^ Ali it 1W ,4 - it 1 IL ,- :Alba hilirli‘gli `� L k Ie71-'S9el'lA19l un 1 , itoai-4,m4.4.. .' . __ s 3 ., , i 1 • ;#.1- ,Ai6. 'w _.... UG`JU W\'JU .mnnrra..L " y.7 UC�'lUlnJ 401111 . 1 $:4-1? — li , k ..a"....J M� r; At a a re li , .! ter - , l►p : , . -. _ j 0104,.9_,,, otio . - s‘is-41+‘ : i ,'' ,• ly .� w mar y� C d14 , ..; , 1 _ ..,..‘, I. li. ,I i 1. , . 4, . . :, , Da4 tl v�PrLi 4 1 ,, , „.,.....,, , I Alit , . . — — z 1 1I1 Disclaimer:Map and parcel data are believed to be accurate,but accuracy is not guaranteed. Map Scale ; F, 4 This is not a legal document and should not be substituted for a title search,appraisal,survey,or 1 inch = 150 feet for zoning verification. 1/17/2024 2040 LAND USE MAP INS t illilififfili � c = , ■ y E INOM �-ii 1 ■ D o _ Subject Site • P Z _ INS 'i' 15584 Gaslight Dr. D. MD 5]RDS, NMITNEV DR „11■. , FA. Eft P W FLORE T4 1 �� Q 1na. � MD 4. INS-- ;' uj 0 154TH ST W M D j FLIGHT WAY W • •:�I - =Dil IL INS U • • + HD p a ;et.1:r E LD I ' D[ �� LL < LD [ o6v ,D)tMD ' D � F(F�T:11.14jp. T— 1SOTHSTWMD MD 1 �� D1 . V� CITY OF APPLE VALLEY 2040 Land Use Map Designation: Acres: Percent: LD-Low Density Residential(2 to 6 4,582 40 94% units/acre) III,,,II I LDF-Low Density Flex(3 to 8 23 021% MD-Medium Density Residential(6 558 4 99% to 12 units/acre) _ HD-High Density Residential(12+ uniL4acre) 275 2.46% _ SIHD-Suburban Intensive High 29 0.26% Density(24 to 48 units/acre) 1111111 MH-Manufactured Housing 108 0.97% _ C-Commercial 537 4.80% I ND-Industrial 271 2.42% MBC-Mixed Business Carpus 159 1.42% V A MIX-Mud Use 7 0.06% _ INS-Institutional 477 4.26% _ P-Parks 8 Open Space 1,780 15.91% _ Utilities 6 0.05% I I Water/Pond 310 2.77% I I Right-of-Way 2.069 1649% Total 11,191 100.00% S—e Temporary Sand 8 Gravel Overlay 2023 ZONING MAP LrLJ�E Ela�p l - �F�. := 1 1 PD l 2 2 2 I� P J 150th ST (CO R_D 42) • 3 '• 2 244 A R-3R-3 R-3• �.. 2 PD 244 2 1 2 PD-254 1 3 R-3 R-3 il PD- 1 PD-254 R-3 `�o RB 'PD-244 PD-541 2/14 PD-679 P R-3 P R 2 1 �-.� Subject Site " 2 } p R-33 -zo R-3 t-3 1." IN C'' 'p R-3 p - �_ 15584 Gaslight Drive J"cq R-3 R-3 R-3 � I s 1 s R 3 R-3 M-6C T w 4f �3 3 .1%)ST w �� P R3 1 R-3 R 3 PD- M- RB 1 4 PD-716 2 PD-679 N�'w R-3 P 1PD-102 pD 'PD=739 4 1 1 T' R-3 wr+R .of R-3 p PD-507 PD-716 s.TN sr w 8C ' R 3 13_3 M-6C 2 A. ..._.. � N 2 R-3 ! R"t7wAr 2 R-3 ��r?R-3 W 1 ' P 2 507 c 6 M-8B 6 0 ' pp ATEW� h W 1• 5 5 . ItRilll1 4 5 Q' op 1 PD-632 3_ 1 PD-71= 7 R-3 P�� 3_", \ q' 10 Q R 3 4 LLJ `PD-400 —k `+c c 6 1 - FLEET ' 3 FLOT, ,„ = 2 E 6. .' . 160th R-: W (CO RD 46) 4 A -1 2 ` (1 i A 4� ` P Property Card Parcel ID Number 01-16253-02-010 Owner Information Fee Owner cJ APPLE VALLEY ECONOMIC DEV AUTHORITY Mailing Address 14200 CEDAR AVE iker STATION APPLE VALLEY MN 55124-5627 i _ ,31 all(liJ - • ,_� r Property Address �� Address 15584 GASLIGHT DR Municipality APPLE VALLEY Parcel Information Sale Date Total Acres 3.10 Sale Value $0.00 R/W Acres Uses EXEMPT Water Acres Plat CARROLL CENTER 4TH ADD Lot and Block 1 2 Tax Description 2023 Building Characteristics (payable 2024)* Building Type Year Built 1998 Bedrooms 0 Building Style Foundation Sq Ft NOT APPL Bathrooms 0.00 Frame Above Grade Sq Ft Garage Sq Ft Multiple Buildings Finished Sq Ft 0 Other Garage Miscellaneous Information School District Watershed District Homestead Green Acres Ag Preserve Open Space 196 VERMILLION RIVER NON HOMESTEAD Assessor Valuation Taxable Estimated 2023 Land Values (payable 2024) $0.00 $1,017,000.00 2023 Building Values (payable 2024)* $0.00 $334,600.00 2023 Total Values (payable 2024)* $0.00 $1,351,600.00 2022 Total Values (payable 2023)* $0.00 $1,249,900.00 Property Tax Information Net Tax(payable 2023) Special Assessments(2023) Total Tax&Assessments(2023) $0.00 $0.00 $0.00 * Manufactured Homes Payable the Same Year as Assessment. 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. Parcel data current as of 01/10/2024 Dakota County, MN Page 1 of 1 4 Apple Valley,Minnesota • 0 Google Street View Jun 2019 1111111.11.111.— - — Ill _.---------___ _ SIT STATION -----Cr."" 7-......411111.......3 s ---—-,MilaY IRAN . ,. ... .''..ei—t.:1/4:-:—.:_:_...-.-•..,. • I --•,-.-. -• m4e,2'.-at' :''Z i'1 i;.aj..-.:el.*:zit;•:.c.:.i.i.a-s..."_..-.:.-:,,.'„.••., II,/•s•. ' • . ' , 1'1 11111111111011111111111I1 l!. , , N ; _ _ _ . _,. •.....-dr_.a; .... ,• .... — . _ _ meat." • -, ah • Arntd 1 , -......., - . . - .. .! • _ .. _ --,- _,. _, liczzek 9 Red Robin Gourme __,... • ----e...____.s.. strgers and Brews Maurhill Auto , Inc/Gts I ............ • \.... ../ 11:Z=Vaa. - , .....- , --- • _ iftma,anunma .• I . ... - . . Google _ --. , .. ..... - —"CS Image capture:Jun 2019 0 20'24 Google 12/20/2024 Discussion of Gaslight Site 15584 Gaslight Drive Economic Development Authority Meeting January25, 2024 " valley 1 Information -1__• 1 li i 'it — 1 1 i WO, w k.aff. d .. ! i i War Gaslight Site generally located at 4-- ee'ee *lee ii, SE corner of 155th Street W. and l -�. `� ;55TMs Gaslight Drive; R — '"' — ..t: 4_'~" .. 1t: 1 1, 1: ' _ 1•k. South of the main MVTA Transit ! K Rk-_- M Hub and parking ramp structure . - I 9 ' - - ;' %`,,1 3.1 acres ` -� �" ;ell1 f ' a )j• Site owned by the AV EDA '' `r �. ;� , ,� fir\ y Apple y-:, ti .4 '1 Va��ey i din - 2 1 12/20/2024▪ Guided "SIHD" IRthII _= J11111i1iLL Suburban Intensive High Density Res. INS J SIHD allows HD res. @ LD Y .. ^"^ 24-48 un./ac. (75- LD 0 9.d Subject Site 148 units) P Z INS 'r = 15584 Gaslight Dr. =- a MD ..• „r .. PD-507, Zone No.2. — — :: 'W .... , Apartments 2+stories LD MD A INS — rei are permitted use �, SIH► Q =HD Ji s I • City received an L01 �. • ••"`""" L from local developer LD `• •LD 1 f MD MD to buy and develop MD ':� r ; UM A site with workforce ' . —!D ' "^"` •°'N 3— A�VallMD f ' ri inw MDe,.,tee r L 3 Information imii--- 0. • 1997-Gaslight Site acquired by the EDA I • March 1999— EDA and MVTA entered into a i'STATION — 90-Yr. Lease Agreement(exp. Dec. 2088) /_ _ 1010 kio • 364-space lot w/ mini transit hub station s _k;-. � � r r installed i •,,— �'" • P&R lot was used extensively by number of local commuters until a new parking ramp structure completed in 2009 (north of site) ---- - — • Ramp expansion completed 2020 • Due to pandemic, site has seen a significant drop in riders or users from this site, and it remains virtually empty or under-utilized for °''Valley this area. 4 2 12/20/2024 EDA Memo Options ( Noted ) 1. Direct staff to have an appraisal performed on the subject property. 2. Upon completion of the appraisal: a. begin negotiations and work directly with the developer; b. direct staff to market and offer the land for sale on the local real estate market; review and present offers back to EDA c. direct staff to prepare and advertise for RFP's 3. Direct staff to cease all negotiations or contact with the proposed housing developer; maintain city ownership of the property; and continue to honor the obligations of the lease agreement between the City and MVTA APPValley 5 Additional Information Any sale will involve a public hearing process as required by state statute ❑ Appraisal managed by and submitted to the City Attorney for confidentiality ❑ Dakota County CDA indicated there may be special housing funds or financial assistance available to a developer that provides workforce/affordable housing on this site, due to its ideal location EDA Board can consider what uses are appropriate for this site—and future marketing or RFP submission narrative may include language that specifies workforce (and/or affordable) housing development on this site CDA has offered to provide grant assistance to performing Phase I Environmental Site Assessment (ESA) of the property Staff still awaiting word from MVTA if Met Council supports relinquishing lease APP!Valley Questions for Staff? 6 3 12/20/2024 Updated Options Does the EDA wish to keep the land for future economic development needs that may benefit the community? OR Does the EDA wish to sell the property? If so, it may direct Staff to begin facilitating the process for the sale of the property. AND Does the EDA have any opinions regarding the current zoning uses for the site and any possible use changes? APpVaIley Questions for Staff? 7 4 • ITEM: 4.E. ••••• • ••• EDA MEETING DATE: January 25, 2024 Apple Valley SECTION: Regular Agenda Description: Review, Discuss and Direct Staff on Potential Development Proposals on City-Owned Lands - 7153 & 7169 152nd Street W. ("866 Site") Staff Contact: Department/ Division: Tim Benetti, Community Development Director Community Development Department ACTION REQUESTED: Planning staff is seeking discussion and direction from the EDA on how to proceed with a request from two separate developers interested in developing the city-owned parcels located at 7153 & 7169 152nd Street West. These properties are commonly referred to as the "866 Site." SUMMARY: The subject properties are currently vacant and generally located south of Apple Valley Ford, east of the Post Office, north of Roers Apartments, and west of Grand Stay Hotel. The site is bounded on all four sides by 152nd Street to the north, Garrett Avenue to the west, 153rd Street to the south, and Gallant Place to the east. The properties are legally described as Lots 1 and 2, Block 3 Village at Founders Circle, and consist of 1.67 and 2.03 acres, respectively, for a combined area of 3.7 acres. The subject properties are guided "MIX" (Mixed Use) and are located in PD No. 739, Zone No. 4. The Background section in this report will provide additional information regarding the goals and objectives of this land use designation and includes detailed information on the zoning standards and allowed uses under PD 739. In mid-2023, planning staff met with a private owner/operator of senior residential care centers, who expressed an interest in developing a new two-story office/headquarter building for his company, along with a new 32-unit, single-story senior residential care facility next door to the offices. The developer submitted preliminary concept and elevation plans for the office/residential care facility, and authorized staff to share these to the EDA for unofficial review and consideration of this initial development inquiry (see attached plan set). While staff was supportive of a multi-level office building, we expressed concerns with the single-story/gabled-pitched roof design of the senior care structure and encouraged the developer to modify or include a second story to this facility. The Developer remains committed to seeking the option of purchasing the 866 Site from the city; and is aware that he will need to put forward Zoning Code (PD) amendment requests to facilitate this development and may need to refine any future plans for this site accordingly. The Developer will be in attendance at the meeting to offer more details of his development proposal if requested by the EDA Board. Planning staff also received a separate request from a local commercial real estate group seeking to purchase the same 866 Site and develop a 20-court indoor pickleball facility and interior restaurant. This development group also indicated secondary interest to purchasing the adjacent city-owned parking lot located at 7075 - 152nd Street, located northeast of the 866 Site - across Gallant Place, and next to Culver's and Grand Stay. This 1.64-acre open lot contains 128 parking spaces, which are available for public parking; and part of this lot is being leased back to the neighboring Apple Valley Ford for temporary storage of dealership vehicles and employee parking. Planning staff has not received any sketch or concept plan from this proposed developer, but did receive a project narrative memo, which is attached to this EDA report. The Development group will be in attendance at the meeting to offer more details if requested by the EDA Board. If the EDA were to approve the sale and transfer of this property to a third-party group, the City of Apple Valley would receive proceeds from the sale of the property, and the property would later become a taxable, revenue generating parcel. The process or options affiliated with the selling of or transferring city-owned lands can be somewhat complex. Options may include: 1. EDA may direct staff to have an official appraisal performed on the subject property in order to determine the true (and fair) market value of the parcel. 2. Upon completion of the appraisal, the EDA may direct staff to either: a. begin negotiations and work directly with one of the two developers that have come forward and expressed an interest in acquiring and developing the site with their preferred developments; b. direct staff to market and offer the land for sale on the local real estate market, and review and present offers back to the EDA Board as they become available; or c. direct staff to prepare and advertise for a general Request for Proposals (RFP) on the property, with certain site design parameters and standards, including an established minimum price (as determined by the appraisal); whereby after all RFP's have been submitted, staff can present and review those proposals to the EDA Board (typically in a closed session), whereby the EDA can choose a preferred design or proposal, and direct staff to begin negotiations and work with the chosen developer. 3. Direct staff to cease all negotiations or contact with both development groups; maintain the public parking lot arrangements and city ownership of all properties noted herein and continue to honor the lease agreement between the City and Apple Valley Ford. Should the EDA Board decide to accept and authorize Option No. 1, planning staff would recommend the appraisal be managed by and submitted to the city attorney, in order to keep the appraisal and value confidential until such time that a developer is selected, or to establish a minimum value within an RFP submittal package. BACKGROUND: The subject properties are guided as MIX-Mixed Use and are situated in PD 739, Zone No. 4. Pursuant to the 2040 Comprehensive Plan, Mixed Use (MIX) areas contain a mix of retail and service businesses, office, institutional, medium and high-density residential, public uses, and/or park and recreation uses. The uses may be mixed vertically in a common structure or horizontally in a common, well-defined site or area. Apple Valley's objectives for Mixed Use are as follows: • Organize land in a compact and walkable environment. • Ensure that Mixed Use PD site plans include strong, well-defined internal and external multimodal connections, especially for pedestrians and bicyclists. • Set standards for private development and public improvements that produce enduring quality and enhance the character and identity of Apple Valley. • Encourage parking strategies that support greater intensity of use and which promote pedestrian activity in Mixed Use districts. • Integrate green/open space into Mixed Use areas. • Improve environmental conditions, such as water quality and energy use, through development incentives. • Connect Mixed Use areas to public facilities, including transit systems, and to the broader community. The purpose of Planned Development No. 739 is to provide for pedestrian oriented, integrated mixed use by means of innovative, neo-traditional mixed-use developments. In addition to the performance standards contained within this article, the design and location of all buildings, as well as lot, block, and street layouts shall be consistent with the design guidelines as contained within the "Apple Valley Central Village Plan", as formally adopted, to the satisfaction of the City Council. (PD-739 District standards and provisions are attached for review). Under PD 739/Zone 4, the proposed two-story professional office building would be considered a permitted use. The proposed 32-unit senior care housing, however, would not be allowed in Zone 4, nor would the single-story/pitched roof design for said structure, as the elevations of single-story buildings must be a minimum height of 25 feet and be designed to appear as a two or more story building. Modifications or amendments to the PD/Zone 4 would be necessary to allow the senior care facility. The EDA Board should note that PD 739 does permit "Assisted living care facilities" under Zone 3. The indoor pickleball facility would likely be classified as a commercial recreation use, or a Health or Athletic Facility. Health/Athletic facilities are allowed by conditional use permit in PD 739/Zone 2 areas only. Amendments to the PD/Zone 4 would be needed to allow such a use inside these areas. BUDGET IMPACT: Should the EDA elect to proceed with the sale of this property, City's EDA would receive proceeds from the sale of the property, and it would become a taxable parcel. Any new office/assisted living care development or a large indoor commercial recreation/athletic facility would likely generate added and considerable real estate tax revenue for the community. ATTACHMENTS: Location Map Map Background Material Background Material Plan Set Background Material "866 SITE" - 7153 - 7169 152nd ST W. J .. . V:l _ � e a9A_ .1 V �7 WCr'i1 4 a. 7200 . - .='• .. didie tar 1 ''�=�' ;V I -1r • •- r . 1 is A_. ._ T! Q 1^ �•f7 • -,,.. -; ` 1, -...'• AS . _ #. n .. 1 25 T • a :Fs:, s at ^r -I; J .4,i ,...,,, :ti: :0 _..,: -:.11.4 it . Illiiih„i,4‘, ''' - '-. et - ;i:ei. IR = oh- '. /A 1'1 3- . .4, Aill; 1 1041 152ND 11 — ^• '111 o WO 10 i 1. * 144 gg --• ._ . •Thlog). _ , , 1� f i- as®0r75 - 15225 r " fTT'i 1 T ^.... I . ,.. fit ,0 a1 ''4 WEN-0 I` T 1 r. REO ..it � - gg rr b� 7083 1 .- 4 f1 n 4,. L., J— _.'�• • • is I P _ >�- s • F _ - 153RD 0C l • - 153RD S3RDj ., --' - .. •• . T , 7070 "' slfahlw t — T T _ f- li . i 1 ' , ' M15380 73501 73,20 . ■ ,e ;II \ 1., Ili r• T 15496 - III �► 549'� r1 Disclaimer:Map and parcel data are believed to be accurate,but accuracy is not guaranteed. Map Scale ,5F:0 This is not a legal document and should not be substituted for a title search,appraisal,survey,or 1 inch =200 feet for zoning verification. 1/18/2024 "866 SITE-2040 LAND USE MAP IMAGE MI C C OW G D'' LL I! M IND Allr FLORENCE TRL 150th ST 150th ST W (CO RD 42) x w y Mil pBELLA6 I - CPriff 9` • •IHD�Q MB 153 ra p .. ,,R i > MD _ 153RD ST ' T •il, �' C ,• W FLORET LD it INS SIHD Q "' Subject Site - "866 Site" 1 Q GA RNE T 1.t,A` >i L zo ro 1• L/ , =SIHD ii• p �_ . LD W H D LL 2 LD AyP� 2 0+ L11J tiT ILip..< J%-..-..-.— CITY OF APPLE VALLEY 2040 Land Use Map Designation: Acres: Percent: 1 LD-Low Density Residential(2 to 6 4,582 40.94% units/acre) 11111111111111111 IIIIIIIIIIIII LDF-Low Density Flex(3 to 8 23 0.21% units/acre MD-Medium Density Residential(6 558 4.99 to 12 units/acre) _ HD-High Density Residential(12+ units/acre) 275 2.46 _ SIHD-Suburban Intensive High 29 0.26% Density(24 to 48 units/acre) ® MH-Manufactured Housing 108 0.97% _ C-Commercial 537 4.80% IND-Industrial 271 2.42% MBC-Mixed Business Campus 159 1.42% re, A MIX-Mixed Use 7 0.06% _ INS-Institutional 477 4.26% _ P-Parks&Open Space 1,780 15.91% _ Utilities 6 0.05% I Water/Pond 310 2.77% Right-of-Way 2069 18.49% Total 11,191 100.00% S S Temporary Sand&Gravel Overlay "866 SITE-2023 ZONING MAP IMAGE 3 M,SC 1 r - 2 LBO _PD=409 4 M-8C PD-290 0 " PD-290111111 1 3 1 1 . 2 W Oa FRN, 3 5 II2 PD-646 1 PD 290 2 Q 1 1 PD-105: 1 3 P O �- _ill 1 I`I 1 2 Mill ii PD= o a 3 2 2 244 pA 2 LL- 150th ST W 2 fi PD-244 g' 2 -2541 3 PD- 1 PD-254 RB P`D-244 PD-541 224 4 3 PD-679 2 1�\ ._ 2 15 - 4 1 4 PD-739 ,,Q �-7 PD- RBW$ ' 1TWL ,° �' 4 _ DSTW J ^ o� RB 1 1 4 _ -o-716 2 1 1 -PD1739 4 I Isubiect Site - "866 Site" 2 7A PD-507 ,...,..�_��.., 713 3 `2 2 [PD-716I I 154TH ST W I ments help to define an identity and character for "� �' .. Central Village District the Downtown area. The Ring Route also serves 1,1...�, ,�' • ik, ': y �'� ` - �r The Downtown focus area contains the Central to provide vehicle access to the Downtown apartVb•, _ .,tY '' ,^. s° i +z -Al. -, • Village, the 60-acre area surrounding the inter- from the primary arterials, and separates the pri- !�, , v,, mary shopping and service area of the City from t ; •:. ` , \ y` /4.' . section of Galaxie Avenue and 153rd Street West. .;,� -`',i / . .7+, •:a', , , 1 This area includes the Shops on Galaxie, Vivo the surrounding neighborhoods. The original Ring - . • , Kitchen, Grand Stay Hotel, RE/MAX office build- Route circles 147th Street West, Galaxie Avenue, — ' "r in Le Legacy Townhomes, Seasons at Apple 153rd Street West, and Pennock Avenue. The ' _ 1 �'� g' g Y pp Valley, s \ Haralson Apartments, Remington Apartments, Central Village is located within this area, with a - r undeveloped parcels remaining. .� f �., • and Parkside Village Gabella. Kelley Park, a pop- fewr - ---.2 ular community park and significant neighbor- Apple Valley's core commercial district has shift- Distinctive streetscape improvements on the Ring Route help de- hood amenity, hosts Music in Kelley Park through- fineed to the east with the development of the Fisch- the Downtown area. p out the summer and Oktoberfest in the fall. er Marketplace and Central Village. Beyond, the Sense of Place Parkside Village Galante is currently under con- Fischer Mine Area contains more than 400 acres, struction and a mixed-use senior cooperative which will be redeveloped and integrated into the The results of a public survey conducted in early building with nearby restaurants, retail and office downtown fabric. The Ring Route should be ex- 2017 indicates that there is strong support for in- buildings are expected to be under construction tended through Orchard Place in or- der to con- vestments in and redevelopment of Downtown soon. Only a few lots remain for residential and nect to the future employment area and draw that continue to promote a unique sense of place. mixed-use commercial development in the area. from adjacent multifamily developments. A sense of place arises from utility, activity, and The vision for the Central Village was to create an To extend the RingRoute and developopportuni- careful design. The City can use many policy, pP area with a unique sense of place by offering a ties alongitsperimeter, the Citywill incorporate economic, and design strategies to achieve its p design alternative to the rest of the Downtown: similar design and amenities to ensure a con- Downtown objectives. 9 multiple story buildings, with a mix of commercial, sistent feel. The focus in this area will be on em- Survey participants indicated that dining and re- retail and residential uses placed closer to the ployment-based land uses — mixed office, medi- tail variety were needed in Apple Valley. Signifi- street in a compact, pedestrian-oriented form. cal, and industrial, including the Mixed Business cant mention was also made by the public for a Vertical mixed use with commercial offices and re- Campus in Orchard Place — with ancillary retail downtown or focal point as something needed in tail on the first floor and residential housing on the and residential. Developing the intensity of adja- Apple Valley. As an implementation action, the upper stories was proposed. The Central Village cent land uses along 147th Street and 153rd community may develop a set of Downtown De- has been shaped over time by market realities and Street will encourage the use of these routes as sign Guidelines to help distinguish the character right-sized for a suburban setting. Full build out of relievers for traffic on County Road 42. of the Downtown development. the area was slowed by the recession and the market was slow to accept the mixed-use-within- a-building development form. However, as more CITY OF APPLE VALLEY 12040 Comprehensive Plan Update Land Use 4-9 AppValley of the residential developments are completed, the area is becoming the vibrant and active area that was envisioned. The area has accomplished its mixed-use vision, an energetic, sustainable and active place containing a variety of housing �_ sus_ \ types, neighborhood commercial uses, live/work - units, and meaningful green spaces. ® . ■■ :�� I + The Cityhas installed on-street parkingand �� - 11 �I III" .. 111_ �' .. .uzr.. u . wacr �„ $ streetscaping improvements that will allow drivers 1 1 .4;1 M 11 1 I ��! to park in the Central Village area and walk the —� M� I 1� -�► �.: district. To maximize dining and retail variety op- _ ..� __ portunities in this area, the existing street im- provements ®� can be taken advantage of through the promotion of ground-floor commercial retail ' '.. development on vacant land. To further promote ';,' the Central Village as a focal point, new devel The Shops on Galaxie. opment should be built to the sidewalk to enhance and others, the development trend has shifted pedestrian interaction with the street and to make Mixed Use toward horizontal mixed-use throughout the sub- the area unique. urban communities of the region. Likewise, Apple The City desires more mixed-use development in Valley encourages horizontal mixed use. Howev- The City can take positive design concepts from Downtown. Uses could be mixed horizontally in er, horizontal mixed use is only effective when the Central Village and build on them throughout building divisions or in separate buildings located designed as part of a cohesive site plan that con- the Downtown. As a first step, the City will adopt close together, or they could be mixed vertically siders both vehicular and active modes of trans- and implement a series of Downtown Design by floors within a single structure. Developers in portation; well connected both internally and ex- Guidelines. the Twin Cities metro have begun to gravitate from ternally from the entire site. vertical mixed-use, which poses distinct chal- lenges. For example, a development is typically Transit Supportive Development only as successful as the ground-floor use. A de- Apple Valley envisions an inclusive, accessible velopment built on ground-floor retail will suffer if Downtown that welcomes and engages citizens the retail businesses suffer or are forced to va- of all ages and abilities and supports alternative cate. Some ground-floor uses, such as restau- travel modes in addition to private automobiles. rants, may also create bothersome effects (noise, odor)for the residents above. For these reasons CITY OF APPLE VALLEY 12040 Comprehensive Plan Update Land Use 4-10 AppValley that would be exclusively for residential develop- vertically in a common structure or horizon- are designated for Mixed Use. Within Downtown, ment at densities greater than 24 units per acre tally in a common, well-defined site or area. the City intends to use the suburban intensive high and most often average 40 units per acre. SIHD Apple Valley's objectives for Mixed Use are as fol- density designation in areas already approved for is located adjacent to the METRO Red Line lows: high density multiple family development. How- transit stations and takes advantage of the prod- ever, Mixed Use could be considered for redevel- • Organize land in a compact and walkable en- ucts and services conveniently located in the opment of scattered parcels, though this is not vironment. Downtown. The SIHD designation does not in- shown on the future land use map. Mixed Use •crease the density of the parcels shown, but ra- Ensure that Mixed Use PD site plans include may be implemented through a planned unit de- strong, well-defined internal and external mul- ther recognizes the densities already approved by velopment. The City will also use design stand- timodal City. This land use designation is served with connections, especially for pedestri- the ards and other land use controls to achieve its ans and bicyclists. a PD zoning designation. desired outcomes for this category. • Set standards for private development and Manufactured Housing public improvements that produce enduring Commercial Land Uses and the In the 2040 Comprehensive Plan Update, the City quality and enhance the character and identity Downtown is creating a new land use category called "Manu- of Apple Valley. • Encourage parking strategies that support Commercial factured Housing" to recognize and maintain the two existing manufactured neighborhoods in Ap greater intensity of use and which promote Use type examples:Retail, office, and service- pie Valley. The two neighborhoods are located pedestrian activity in Mixed Use districts. related uses adjacent to Cedar Avenue in the north end of the • Integrate green/open space into Mixed Use community and may face redevelopment pressure areas. - ' ' i' over the course of this plan, especially if connec- • Improve environmental conditions, such as4. �'1 �� A. tions to transit services are improved. The City in- water quality and energy use, through devel- I I I % i tends to maintain the two neighborhoods to en- opment incentives. I I I I sure unsubsidized affordable housing is available • Connect Mixed Use areas to public facilities, ' I i in Apple Valley. including transit systems, and to the broader i" community. i I i Mixed Use (MIX) A distinction is made between Mixed Use and The Commercial (C) designation includes a wide Use type examples: Live/work units, and Mixed Business Campus, with MBC reserved for variety of retail, office, and service uses that vary planned unit developments Orchard Place, where it is intended to guide in intensity and off-site impacts. The City uses the Mixed Use (MIX) areas contain a mix of retail and higher-intensity development and promote eco- zoning ordinance to regulate the intensity and service businesses, office, institutional, medium nomic growth. characteristics of development. Lower-intensity and high-density residential, public uses, and/or Currently, only three parcels in the Central Village park and recreation uses. The uses may be mixed CITY OF APPLE VALLEY 12040 Comprehensive Plan Update Land Use 4-25 AppValley ARTICLE A31. DESIGNATION NO. 739 §A31-1 PURPOSE. The purpose of this article is to establish specific performance standards in compliance with §A1-46 for property designated by Ordinance No. 739 on the official zoning map. The purpose of this planned development-zoning district is to provide for pedestrian oriented, integrated mixed use by means of innovative, neo-traditional mixed use developments. In addition to the performance standards contained within this article, the design and location of all buildings, as well as lot, block, and street layouts shall be consistent with the design guidelines as contained within the"Apple Valley Central Village Plan ", as formally adopted, to the satisfaction of the City Council. (Ord. 739, passed 12-8-03) §A31-2 CONFLICT PROVISION. If any provision or requirement of this article is in conflict with any term, condition, or standard contained in the "Apple Valley Central Village Plan " or with any provision or requirement of any other chapter in this Code, the provisions and requirements set forth in this article shall govern. (Ord. 739, passed 12-8-03) §A31-3 DEFINITIONS. For the purpose of this article, the following definitions shall apply unless the context clearly indicates or requires a different meaning. LIVE/WORK UNIT.A residential dwelling unit that also serves as the resident's workplace. MIXED USE.The development of a tract of land, building, or structure with a variety of complementary and integrated uses such as, but not limited to residential, commercial, or civic, in a compact urban form. NEO-TRADITIONAL DEVELOPMENT.A pedestrian oriented compact development, with variable lot width and sizes, a mix of dwelling and commercial uses, onstreet parking, a main street and structures built no greater than the front line on major streets. TOWN OFFICE.A multiple-unit commercial office building that is designed and constructed to resemble a townhouse structure and is built to no greater than ten feet from the front property line of its lot. (Ord. 739, passed 12-8-03) §A31-4 PERMITTED USES. (A) Zone 1. Within this zone, no structure or land shall be used except for one or more of the following uses or uses deemed similar by the City Council: (1) Townhouses at a maximum of 25 units per acre. (2) Multi-family residential apartment and condominiums at a maximum density of 48 units per acre. (3) Town offices at a maximum density of 25 units per acre. (4) Family-care home or day-care home licensed by the State of Minnesota or such home for the care of the mentally or physically handicapped licensed by the State. (5) Public utility buildings and structures. (6) Home occupation as defined in §155.003 . (7) Parks and playgrounds. (8) Public libraries. (9) Public recreation buildings, community centers and swimming pools. (10) Municipal government administrative buildings. (B) Zone 2.Within this zone, no structure shall be used, except as a mixed use that consists of any two or more of the following uses or uses deemed similar by the City Council: (1) The following retail uses: Antique or gift shops; appliance store (sales and/or repair); art and school supply store; bakery; bank; savings and loan (drive-up teller service and outdoor ATM service are subject to conditional use permit); barbershop; beauty salon; bicycle sales; books; stationery and office supplies; candy; camera and photographic supplies; carpet and rug sales; catering services; china and glassware sales; clothing and costume sales and rental; coin operated amusement devices and similar facilities; department store; drugstore; dry cleaning; dry goods; electronic sales and/or service; florist; furniture store; garden supplies; grocery; hardware store; hobby store; interior decorating;jewelry and watch repair; laundromat; leather goods and luggage; locksmith; musical instruments; nail salon; off-sale liquor store; on-sale liquor, wine or 3.2% beer in conjunction with a Class I restaurant facility; paint and wallpaper sales; photography studio; pipe and tobacco shop; recorded music sales; Class I, II, or III restaurant(no drive-through facilities allowed), subject to the installation of state of the art ventilation equipment in restaurants where applicable; shoe sales or repair; sporting goods; tailoring; theater(except open air drive-in); toy store; and video rental and sales. (2) Professional offices for doctors, dentists, lawyers, realtors, insurance agents, and similar uses. Individual tenant office spaces shall not exceed 25% of the first floor gross area within any one building. (3) Offices of a general nature where the operations do not include over-the-counter retail sales or warehousing from the site. Individual offices shall not exceed 25% of the first floor gross area within any one building. (4) Multi-family residential. (5) Live/work units when part of a mixed use building. (6) Community-based family care home, day care home licensed under M.S. §245.812 or such home for the care of the mentally or physically handicapped licensed by the state. (7) Public utility buildings and structures. (8) Home occupation as defined in §155.003. (9) Parks and playgrounds. (10) Public libraries. (11) Public recreation buildings, community centers, and swimming pools. (12) Municipal government administrative buildings. (13) Parking ramps and structures in conjunction with a commercial retail building, residential structure, or residential/commercial mixed use structure. (14) Hotels. (C) Zone 3.Within this zone, no structure or land shall be used except for one or more of the following uses or uses deemed similar by the City Council: (1) Any permitted use specified for Zone 1 of Planned Development Designation No. 739 herein. (2) Assisted care facility on Lots 1 &2, Block 10 of The Legacy of Apple Valley North. For purposes of this clause, an "assisted care facility" shall mean a structure or several structures developed as a single facility in which residential housing and limited medical care is provided to persons who reside in a single unit dwelling that includes complete, permanent independent living facilities for the resident, including, but not limited to: living, sleeping, cooking, eating, and sanitation provisions and receives some personalized supportive services or care from the facility staff, but not full, 24-hour personal or medical care. (D) Zone 4.Within this zone, no structure or land shall be used except for one or more of the following uses or uses deemed similar by the City Council: (1) The following retail uses: antique or gift shops; appliance store (sales and/or repair); art and school supply store; bakery; bank and savings and loan; barbershop; beauty salon; bicycle sales; books; stationery and office supplies; candy; camera and photographic supplies; carpet and rug sales; catering services; china and glassware sales; clothing and costume sales and rental; coin operated amusement devices and similar facilities; department store; drugstore; dry cleaning; dry goods; electronic sales and/or service; florist; furniture store; garden supplies; grocery; hardware store; hobby store; interior decorating;jewelry and watch repair; laundromat; leather goods and luggage; locksmith; musical instruments; nail salon, on-sale liquor, wine or 3.2 beer in conjunction with a Class I restaurant facility; paint and wallpaper sales; photography studio; pipe and tobacco shop; recorded music sales; Class I, II, or III restaurant(no drive through facilities allowed), subject to the installation of state of the art ventilation equipment in restaurants where applicable; shoe sales or repair; sporting goods; tailoring; theater(except open air drive-in); toy store; video rental and sales. (2) Professional offices for doctors, dentists, lawyers, realtors, insurance agents, and similar uses. Individual tenant office spaces shall not exceed 25% of the first floor gross area within any one building. (3) Offices of a general nature where the operations do not include over-the-counter retail sales or warehousing from the site. Individual offices shall not exceed 25% of the gross floor area within any one building. (4) Parking ramps and structures in conjunction with a commercial building. (5) A single-story building, provided the following conditions are met: (a) The height of the building as measured from grade shall be a minimum of 25 feet and shall be designed to appear as a two or more story building. The minimum building height shall not include decorative parapets, towers, or other architectural, ornamental or mechanical treatments. (b) Any elevation of the building that fronts a public street, sidewalk, parking lot, or open space as defined herein shall have window coverage of a minimum of 35%of the total square feet area of the elevation. The windows in the lower 50% area of the elevation, as measured from grade to the roof line, shall be constructed of a material that allows unobstructed view into the building. Spandrel glass or other false window material shall not be permitted for windows that are located in the lower 50% area of the elevation, but may be installed in the upper 50% area of the elevation. The phrase "open space" shall mean any public right-of-way, public property, and any outdoor private property which is open to the general public, including, but not limited to: plaza areas, court yards, outdoor dining areas, patios, commons, gardens or other feature areas for display to and review by the public. (6) Publicly owned parking lots and facilities. (Ord. 739, passed 12-8-03; Am. Ord. 765, passed 1-27-05; Am. Ord. 851, passed 12-11-08;Am. Ord. 938, passed 1-24-13; Am. Ord. 993, passed 7-9-15; Am. Ord. 1037, passed 12-28-17) §A31-5 CONDITIONAL USES. (A) Zone 1. Within this zone, no structure or land shall be used for the following use or uses deemed similar by the City Council except through the granting of a conditional use permit: (1) Community-based family care home, day care home not licensed under M.S. §245.812 or a community-based residential care facility or day care facility in a multiple dwelling unit when: (a) Facility meets all existing health, fire, building and housing codes. (b) Separation of one-quarter mile exists between such intervals. (c) Such conditional use permit shall be reviewed at one-year intervals. (B) Zone 2. Within this zone, no structure or land shall be used for the following use or uses deemed: similar by the City Council except through the granting of a conditional use permit: (1) Bank or savings and loan with drive-through teller and ATM services, subject to the following: (a) A maximum of one drive-through teller lane and ATM service lane shall be allowed per lot. (b) Drive-through lanes shall be located in the back of the building and shall not have direct access from an arterial or collector street. (c) Drive lane circulation patterns, including ingress and egress, shall be designed not have an adverse impact to overall pedestrian and vehicular traffic of the area. (2) Day care center, subject to the following: (a) The drop off/pick up lane shall be located in the back of the building and shall not have direct access from an arterial or collector street. (b) The drop off/pick up lane circulation pattern, including ingress and egress, shall be designed not have an adverse impact to overall pedestrian and vehicular traffic of the area. (c) Recreational areas shall be located inside the building or on the roof and shall be appropriately screened and fenced. (3) Health or athletic facilities, subject to the following: (a) The facility shall be contained within a multi-story building with a total building footprint area not to exceed 40,000 square feet. (b) The facility shall be located within this zone to allow for shared parking with adjacent non-conflicting uses. (4) Sidewalk display or sales of goods conducted by an occupant of a retail building subject to review by the Planning Commission and City Council and to the following standards: (a) Sidewalk displays or sales shall be permitted only directly in front of the occupant's business, provided that at least five feet of clearance is maintained at the storefront entrance, the display is located against the building wall and no greater than three feet deep, no higher than the sill of the first floor windows and does not exceed 75% of the length of the storefront. (b) Sidewalk displays or sales shall be clean, litter-free, and well maintained at all times and shall be compatible with the colors and character of the storefront from which the business operates. (c) Sidewalk displays or sales shall be permitted only during business hours and shall be removed at the end of the business day. (d) Items for sale shall be displayed on commercially available or professionally constructed, custom-designed shelving or platforms of waterproof, high quality, and durable materials. Cardboard boxes and wood pallets shall not be used for sidewalk displays or sales. (e) A minimum of five feet sidewalk shall remain clear to allow for unencumbered pedestrian movement. (5) Outdoor sidewalk cafes in conjunction with a restaurant, subject to review by the Planning Commission and City Council and to the following standards: (a) A minimum of five feet of sidewalk along the curb and leading to the entrance of the restaurant shall be maintained free of tables, chairs, and other obstructions. (b) Temporary barriers shall be used as a way of defining the sidewalk cafe area. (c) Extended awnings, canopies, or large umbrellas with colors that complement the building colors may be permitted. (d) Additional outdoor trash receptacles shall be provided. (e) Tables, chairs, planters, trash receptacles, and other elements of street furniture shall be compatible with the architectural character of the building where the restaurant is located and/or city street furniture standards. (C) Zone 3.Within this zone, no structure or land shall be used except for one or more of the following uses or uses deemed similar by the City Council pursuant to the granting of a conditional use permit: (1) Any conditional use specified for Zone 1 of Planned Development Designation No. 739 herein. (D) Zone 4.Within this zone, no structure or land shall be used except for one or more of the following uses or uses deemed similar by the City Council pursuant to the granting of a conditional use permit: (1) Sidewalk display or sales of goods conducted by an occupant of a retail building subject to the following standards: (a) Sidewalk displays or sales shall be permitted only directly in front of the occupant's business, provided that at least five feet of clearance is maintained at the storefront entrance, the display is located against the building wall and no greater than three feet deep, no higher than the sill of the first floor windows and does not exceed 75% of the length of the storefront. (b) Sidewalk displays or sales shall be clean, litter-free, and well-maintained at all times and shall be compatible with the colors and character of the storefront from which the business operates. (c) Sidewalk displays or sales shall be permitted only during business hours and shall be removed at the end of the business day. (d) Items for sale shall be displayed on commercially available or professionally constructed, custom-designed shelving or platforms of waterproof, high quality, and durable materials. Cardboard boxes and wood pallets shall not be used for sidewalk displays or sales. (e) A minimum of five feet sidewalk shall remain clear to allow for unencumbered pedestrian movement. (2) Outdoor sidewalk seating in conjunction with a restaurant, subject to the following standards: (a) A minimum of five feet of sidewalk along the curb and leading to the entrance of the restaurant shall be maintained free of tables, chairs, and other obstructions. (b) Temporary barriers shall be used as a way of defining the sidewalk cafe area. (c) Extended awnings, canopies, or large umbrellas with colors that complement the building colors may be permitted. (d) Additional outdoor trash receptacles shall be provided. (e) Tables, chairs, planters, trash receptacles, and other elements of street furniture shall be compatible with the architectural character of the building where the restaurant is located and/or the city's street furniture standards. (Ord. 739, passed 12-8-03; Am. Ord. 851, passed 12-11-08; Am. Ord. 938, passed 1-24-13) §A31-6[RESERVED]. §A31-7 PERMITTED ACCESSORY USES. (A) Zone 1. Within this zone, the following uses or uses deemed similar by the City Council shall be permitted accessory uses: (1) Buildings temporarily located for the purposes of construction on the premises for a period not to exceed the time necessary to complete said construction. (2) Temporary sales office. (3) Public telephone booths and other essential public service facilities provided all yard requirements are met. (B) Zone 2. 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T , . , . . .a , Tr a b (1) •- Itil 0- . '• ilk b < c•J C/) El . .._ . ._ • ,.,•) •— ._ . , . b.0 CL III 2.. c71°44 *4. in IMILIN. NI Pe.--- Lf) 1 NI p rimm . m . .1 . • 77 . ii... Ill . . ... ...............i Ca cri. ill 11.1ill ... z • N IIIIMIIIOIMMIMMINIMIIIIMMMOII Ito > 1111 C CU es' > I. < Lin CO ul - Z cc 1/40 CL 0 ray. Tu:2 2,E, . ci) 71 •`4 • I • -I—'• 1 , II Cn 0 .'C j-•" E) (q.:7) I I E . . cu = w z ..,_, ca.„ lionselliiimmiwg.- _ 1 0 o ..... ci) - w _ 44•010P- , . >. c - ._ t . o ci, 11- Ardmimiiit4 .0-.99 .0-.9£l .0-376 .0-,SZ - I ' ' wi (..) in) (11 (J) - .0-.01 — • f': 0 ti --- _l II I .. ce ia Vie ' CO/ ---- Edina Realty® a Berkshire Hathaway affiliate EDA, Council and members of the planning staff of the city of Apple Valley, I am representing a client that is in the process of finalizing a joint venture to build the premier Pickleball facility in the Twin Cities. Pickleball is the fastest growing sport in the nation, and Minnesota is within the top 5 states in the number of citizens engaging in this activity. With a high degree of, and growing, demand, our group feels confident that the southern Twin Cities is grossly underserved in venues that offer a unique Pickleball experience. Our team intends to design and develop a facility that will draw not only the avid Pickleball players, but a wider range of players, from nov- ice to expert through tournament play, community events, lessons and FOOD! I will give you the high level plan consid- ering that this project is in its beginning stages, and although the pieces are coming together nicely, our team has only recently engaged consultants in some of the needed areas of design, development and business planning and the avail- ability of this site has accelerated our efforts in lieu of other obligations. Our design build firm, ONYX along with The Obsidian Group, with whom you're working on other projects, have been tasked to conceptualize for the site: Form-cast or similar building to accommodate up to 20 pickleball courts in a round as the hub to this facility will be a fully equipped restaurant/bar with room for spectators. -- - TAW Ca I anticipate the size to be around 40,000 sq ft with features to allow for some natural , ""' light and or open-air feel during the spring/summer months. The restaurant operator desires to a rooftop patio and a water feature on the site. With this in mind,the restau- r 1• ,r . ,1te. �� i 1101 rant will be elevated on a mezzanine level with rooftop access or something similar. °" " `` ���`r� Building aesthetics are planned to be attractive and inviting,thus the idea of water fea1 'r tures and possibly outdoor courts as well. • _,‘ Restaurant operator: My client, currently involved in the planning for the aforementioned restaurant is a locally based specialty Happy Mex concept that has been successful for over 13 years with two locations in the Twin Cities, and now a third location opening in April.This "chain" has a recognizable name, even to suburban consumers. Pickleball operator: There are currently two prospects for this position, both with ownership aspirations as well as fi- nancial backing. In addition,we have engaged with a Pickleball consultant, renowned in the Twin Cities for his Pickle- ball lessons programs, as well as his oversight on some of the largest Pickleball projects, including that of one of the largest health club companies in the country. Both of the operator candidates are also well known within the Pickleball community in Minnesota. Development team: because of the recency of this endeavor,the development team and the level of investment from the members is being determined. We are still exploring the capital stack and have several investors that have shown a great deal of interest in funding this project. Knowledge of the level of interest by the EDA will help entice our current investor pool to subscribe to the project fully. If there is an appetite for this project on behalf of the city and the EDA we would encourage conversations about the possibility of community discounts/investment. Please let me know if you have any further questions...design work is just beginning, so our team is open to your sug- gestions. Because the team and the operators aren't fully vetted or solidified,thus we cannot offer names or organiza- tions fully at this time.Thank you for your consideration! Rick Thram, Commercial Realtor C-952.451.2900 E—RickThram@EdinaRealty.com 12/20/2024 Discussion of City-Owned Lands 7153 & 7169 152nd Street W. ("866 Site") Economic Development Authority Meeting January25, 2024 ApPValley 1 III " �� + ' , -- Information v. 720'1, • � _ Site owned by City of AV—NOT the EDA i ti.c .. = s.. t 4 I ,-+ 0~n A " al 7 2,416 Site located south of Apple Valley Ford, east �,l'" r" ', I- S ' of Post Office, north of Roers Apts. west ofC. " ,N., F = . �= _ '-` ��- Grand Stay Hotel. • ' ° 4‘�' ' - - Vacant site - bounded on four sides by --\ • g-36 ' 152nd St. to north, Garrett Ave. to west, ,, - __ 0 153rd St. to south, and Gallant Place to �_ + east. , ;- 15: Lots 1 & 2, Block 3 Village at Founders Circle 4 -� 1 � _ _ _, 0 1.67 & 2.03 acres each; combined 3.7 acres. ,� - _ , , --- kk` . — 3,�.iy:y�e '� /, ppValley Tr _ a _• 1549 ,5 -, i 2 1 12/20/2024 "866 SITE-2040 LAND USE MAP IMAGE • Guided " "MIX" (Mixed Use) INSMI. ISE IND • Mixed Use(MIX)areas contain a mix of retail and _ _ service businesses, office, MIMIinstitutional, medium and I MBC high-density residential, I public uses, and/or park and - -- recreation uses. �� 4 I �� �1� MD The uses maybe mixed - vertically in a common ::►' my �«•.• structure or horizontally in a ' LD INSillik "t j common, well-defined site or : Subject Site-"866 Site" le area. i 1 r . . O f ik!i in. P � t LI LD if' 1 LD LD LD �;• Imo-,.. 3 "866 SITE-2023 ZONING MAP IMAGE IITWWi R-3 ! —- 9....,.�. 3 P;1-5C 2 Le; PD 40 L r 47 1 PD-290 Q 1:1111111ke 3 PD-290 M-8C W � .)�1_I r..i X i 3 1 Q2 PD-646 PD-290 2 Q 1 PD-105 (. 1 PD No. 739, ZoneL3... P0 _ 1 No. 4. I - 2 -MW PD- 2 , A 2 150thSTW ` I PD-244 '- El 1 PD-2541 3 S=1:1- PD- 1 PD-254 RB -PD-244 PD-541 2 PD-679 24 4 3 ! L 2 1 ,..cnit .2 4 4 PD-739 .-'-. CD PO- ' RB I ' IC.- 3 3 s „ 1 1 RB 1 1 4 •-716 2 -PD-739 E1- Subject Site-"866 Site" I ; 7A PD-507 7B � ,.,.,.,,.2 - PD-716II I 4 2 12/20/2024 Information Staff received two separate ',f �� �i .=:1 development proposals: ■••II■• "'� I■ EM I.M■■■. - ' 3: � ■Immo ■gy I m , , - , imom• , A) two-story office building - ..c 'r i "il `iiii with 32-unit, single-story _ "JI_�lii - senior residential care i facility * _ _ ___—mi.-__Inn iiiiiii Militi i■i•i•ii- .... :W '-_--- --- EMT ill lei; iiiiii iW■NN, IMENNI= :h Apple Valley 866 Site -Sample Elevation of two story senior living with dormers ,�.„j / iAiAis 4-® n \ $�. ` Apple ti. Valley, a _ . + Information _ Alipi.----__- _ _ _ �► w eat Staff received two separate development proposals: _ _ �'"�;-' - -nor -_ TACO CANT( - _ - l - B) 20-court indoor pickleball /, Ili• ,1 • • facility with interior • ;_. - _ ' _ ' restaurant * A JM.+-...'- ., r �; gill. 11 11.1t6 1 II C \ , 4r' 1111.i - r r X111 - ' -T i .. 1 * Note: both proposed uses ' 1� , would require modifications s • =a �. :::; or amendments to the PD AppValley 739 District 0 164 ' \-- lilt I - . 6 3 12/20/2024 EDA Memo Options ( Noted ) 1. Direct staff to have an appraisal performed on the subject property. 2. Upon completion of the appraisal: a. begin negotiations and work directly with one of the two developers; b. direct staff to market and offer the land for sale on the local real estate market; review and present offers back to EDA c. direct staff to prepare and advertise for RFP's 3. Direct staff to cease all negotiations or contact with the proposed housing developer; maintain city ownership of the property; and Apple valley continue to honor the obligations of the lease agreement between the City and MVTA 7 Updated Options What is the EDA's input on whether the City of Apple Valley retain ownership of the land for public purposes that may benefit the community? If not retain ownership, does the EDA have any input on the current zoning and any possible changes in zoning uses (type of general uses, not specific uses). APP lley Questions for Staff? 8 4