HomeMy WebLinkAbout20240820 PA RM Packet
AGENDA
Port Authority Regular Meeting
Tuesday, August 20, 2024
6:00 PM
Council Chambers, City Hall
1. CALL TO ORDER/PLEDGE OF ALLEGIANCE
2. ADDITIONS OR CORRECTIONS TO AGENDA
3. CONSENT AGENDA
a. Meeting minutes of the July 16, 2024 Regular Meeting
4. CHAIRPERSON’S REPORT
5. REPORTS FROM PORT AUTHORITY COMMISSIONERS
6. NEW BUSINESS
a. Modification to the Tax Increment Financing Plan for Osprey Tax Increment Financing
District
b. Willy McCoy's Development Contract
7. OLD BUSINESS
a. Project Updates
8. DISCUSSION
9. ADJOURNMENT
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ROSEMOUNT PORT AUTHORITY
REGULAR MEETING PROCEEDINGS
JULY 16, 2024
CALL TO ORDER/PLEDGE OF ALLEGIANCE
Pursuant to due call and notice thereof, a regular meeting of the Rosemount Port Authority
was held on Tuesday, July 16, 2024, at 6:00 PM. in Rosemount Council Chambers, 2875 145th
Street West.
Vice Chair Klimpel called the meeting to order with Commissioners Weisensel, Freske,
Beaudette, Ober and Theisen. Commissioner Essler was absent.
ADDITIONS OR CORRECTIONS TO AGENDA
Motion by Klimpel Second by Theisen
Motion to approve consent agenda
Ayes: 6.
Nays: None. Motion carried.
CONSENT AGENDA
Motion by Theisen Second by Freske
Motion to approve consent agenda
Ayes: 6.
Nays: None. Motion carried.
a.Regular Meeting Minutes June 18, 2024
CHAIRPERSON’S REPORT
None.
REPORTS FROM PORT AUTHORITY COMMISSIONERS
Commissioner Beaudette noted the recent First State Bank of Rosemount groundbreaking, and
the Port Authority discussed the great addition of Sweet Kneads to the project. Also noted was
the adjacent parcel owned by the Bank which is to be marketed for development preferably for
a sit-down restaurant.
NEW BUSINESS
a.Local Affordable Housing Aid Collaboration
Dakota County Community Development Agency (CDA) presented an overview of the
latest legislative funds and the goal to administer three proposed programs (home
improvement loan program, radon mitigation grant or preservation and new
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construction gap financing) . In 2023, the Minnesota Legislature authorized aid
payments to counties, cities and Tribal Nations. The goal is to fund affordable housing
projects and help organizations provide affordable and supportive housing. Local
Affordable Housing Aid (LAHA) has funds for direct allocation of dedicated sales tax to
cities and counties for the purpose of developing and preserving affordable housing;
and helping persons experiencing homelessness find housing. Rosemount is to receive
$85,047.80 in the first year (2024).
Vice Chair Klimpel questioned the administration that goes along with this, and
Community Development Director Kienberger noted the CDA handles the
administrative burden and staff recommends partnering with the CDA.
Commissioner Freske and Klimpel stated they would be in favor of the home
improvement loan program as the dollars would go to existing homeowners and seems
to the best option financially.
Next, the CDA will obtain formal approval and execute a joint powers agreement for the
program.
OLD BUSINESS
a.Project Updates
Community Development Director Kienberger provided the following project updates;
UMore approved the sale to the school district for the middle school location and
Speedway continues to go through a legal process at least until December 17th. Mr.
Kienberger noted staff continues to clean up the property as legally possible.
DISCUSSION
None.
ADJOURNMENT
There being no further business to come before the City Council at the regular council meeting
and upon a motion by Klimpel and a second by Freske the meeting was adjourned at 6:53 p.m.
Respectfully submitted,
Erin Fasbender
City Clerk
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EXECUTIVE SUMMARY
Port Authority Regular Meeting: August 20, 2024
AGENDA ITEM: Modification to the Tax Increment Financing Plan AGENDA SECTION:
for Osprey Tax Increment Financing District NEW BUSINESS
PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 6.a.
ATTACHMENTS: Modification to TIF Plan APPROVED BY: LJM
RECOMMENDED ACTION: Information Item
BACKGROUND
The District currently consists of forty (40) parcels of land and adjacent roads and internal rights-of-
way. The District was created to facilitate the development of an approximately 417,600 square foot
warehouse/distribution facility for Home Depot. The City has entered into an agreement with Seefried
PSO Rosemount, LLC as the developer, and development began in 2021 and was completed in 2022.
The TIF Plan is being modified to remove thirty-eight (38) non-complying parcels from the District.
After establishment of the District, the parcels were re-platted, and parcels not associated with the
development will be removed from the District. This item will appear on the Consent Agenda for the
regular City Council Meeting on August 20, 2024. A representative from Ehlers will give a brief
presentation on the action and be available to answer questions.
RECOMMENDATION
Information Item
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34-40701-00-02034-64560-01-190
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34-64560-01-15034-64560-01-340
34-64560-01-16034-64560-01-350
34-64560-01-17034-64560-01-360
34-64560-01-18034-64560-01-370
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Minnesota Statutes ("M.S."), Sections 469.124 - 469.133M.S.,
Sections 469.174 to 469.1794
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Description of Property in the District and Property to be Acquired
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Classification of the District
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M.S., Section 469.176, Subd. 4c,
M.S., Section 469.176,
Subd. 4c(d)
M.S., Section 469.175, Subd. 1, and M.S., Section 469.176, Subd. 1
M.S., Section 469.176, Subd. 1b.
M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1
M.S., Section 469.177, Subds. 1 and 2
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M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4
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M.S., Section 469.175, Subd. 4
M.S.,
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M.S. Section 469.175 Subd. 2(b)
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M.S. Section 469.175 Subd. 2(b)
M.S. Section 469.175, Subd. 1 (a), clause 7
M.S. Section
469.175, Subd. 3, clause (b)(2)
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Horseshoe
Park
Shannon Park
Meadows
Park
Brockway
Park
BIRMINGHAM
CT
Schwarz
Pond Park
BELVIDERE CT
emara Park
Birch Park
Carrolls
Woods Park
Bloomfield
Park
Erickson Park
Central Park
Charlie's Park
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Biscayne Park
Kidder Park
ara Park
Camfield Park
Chippendale Park
Puddles
RUU
Claret Park
Jaycee
Park
Winds
Park
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M.S., Section 469.175, Subd. 3
1.Finding that the Osprey TIF Districtis an economic development district as defined in M.S.,
Section 469.174, Subd. 12.
2.Finding that the proposed development, in the opinion of the City Council, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeablefuture and that the increased market value of the site that could reasonably be
expected to occur without the use of tax increment financing would be less than the increase
in the market value estimated to result from the proposed development after subtracting the
present value of the projected tax increments for the maximum duration of the Osprey TIF
Districtpermitted by the TIF Plan.
The proposed development, in the opinion of the City, would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable future:
The increased market value of the site that could reasonably be expected to occur without
the use of tax increment financing would be less than the increase in market value estimated
to result from the proposed development after subtracting the present value of the projected
tax increments for the maximum duration of the TIF District permitted by the TIF Plan:
Qbhf!39!pg!4:
3.Finding that the TIF Plan for the Osprey TIF Districtconforms to the general plan for the
development or redevelopment of the municipality as a whole.
Finding that the Tax Increment Financing Plan for the Osprey TIF Districtwill afford maximum
4.
opportunity,consistent with the sound needs of the City as a whole, for the development of
Redevelopment Project No. 1 by private enterprise.
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EXECUTIVE SUMMARY
Port Authority Regular Meeting: August 20, 2024
AGENDA ITEM: Willy McCoy's Development Contract AGENDA SECTION:
NEW BUSINESS
PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 6.b.
ATTACHMENTS: Contract APPROVED BY: LJM
RECOMMENDED ACTION: Motion to Approve the First Amendment for Private Development Between
Rosemount Port Authority and Willy McCoy's of Shakopee, LLC.
BACKGROUND
Earlier this year, the Rosemount Port Authority approved a contract for private development with Willy
McCoy's of Shakopee, LLC to construct a new restaurant near the Life Time development. The
agreement outlined the minimum requirements of the project and the requirements Willy McCoy's of
Shakopee, LLC needed to complete in order to be eligible for a business subsidy from the city. Due to a
delay in the purchase agreement between the private parties, the contract for private development
needs to be updated to reflect a new project timeline.
Staff and the city's legal counsel decided it would be appropriate to add a new definition "Satisfactory
Progress to Completion." This new definition would allow the business subsidy to be granted prior to
gaining a Certificate of Occupancy, but after the majority of the building has been constructed. This
change is to provide some flexibility to disburse the business subsidy, while still meeting the statutory
deadline of the TIF Spending Plan on December 31, 2025. Representatives from Willy McCoy's of
Shakopee, LLC are present to give an update on the project and Ehlers, the City's financial consultant, is
present to answer any questions on the TIF Spending Plan.
RECOMMENDATION
Staff recommends the Port Authority approve the First Amendment for Private Development Between
Rosemount Port Authority and Willy McCoy's of Shakopee, LLC.
Qbhf!41!pg!4:
FIRST AMENDMENT TO
CONTRACT FOR PRIVATE DEVELOPMENT
BY AND BETWEEN
ROSEMOUNT PORT AUTHORITY
AND
WILLY MCCOYS OF SHAKOPEE, LLC
’
This Document Was Drafted By:
KENNEDY & GRAVEN, CHARTERED (RHB)
150 South Fifth Street
Suite 700
Minneapolis, MN 55402
(612) 337-9300
RS230\\66\\967219.v3
Qbhf!42!pg!4:
FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT
This First Amendment to Contract for Private Development (the “First Amendment”), is
made as of the _______ day of _______________, 2024, between the Rosemount Port Authority,
a public body corporate and politic under the laws of Minnesota, having its principal office at
th
2875 145 Street W., Rosemount, Minnesota 55068-4941 (the “Port”), and Willy McCoy’s of
Shakopee LLC, a limited liability company under the laws of Delaware, having its principal offices
th
at 515 165 Avenue, NW, Andover, Minnesota 55304 (the “Developer”).
Witnesseth:
WHEREAS, on January 16, 2024, the Port approved a Contract for Private
Development with the Developer for the development of a 7,500 sq. ft. restaurant and tavern
with a rooftop patio and upstairs bar and banquet area (the “Project”); and
WHEREAS, the Port and the Developer desire to amend the Contract for Private
Development in recognition of certain delays in the project.
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
obligations set forth in this First Amendment, the Port and the Developer hereby agree as follows:
1.In this First Amendment, unless otherwise noted, underline and strike-through text
shall be used to indicate amendments to the Contract for Private Development. Underline text
shall indicate new language, and strike-through text shall indicate removed language.
2.Section 1.1 Definitions of the Contract for Private Development is amended as
follows:
“Minimum Improvements” means the construction of a 7,500 sq ft. restaurant and tavern
with a rooftop patio and upstairs bar and banquet area (the “Project”) consistent with the
Construction Plans on the Property. After completion of the Minimum Improvements, the term
shall mean the Property as improved by the Minimum Improvements.
“Project” means a 7,500 sq. ft. restaurant and tavern with a rooftop patio and upstairs
bar and banquet area.
“Satisfactory Progress to Completion” means the certification to be made by the City’s
building official after all rough-in inspections for plumbing, utilities, framing and electrical work
on the Minimum Improvements have been completed and passed, and the building shell is
completed, and the roofing structure and membrane are installed.
3.Section 3.1 of the Contract for Private Development is amended as follows:
Section 3.1. Acquisition of the Property. The Developer has entered into a purchase
agreement regarding the Property and agrees to close on the transaction and obtain fee title and
possession of the Property by no later than July 30, 2024 April 30, 2025.
4.Section 4.3 of the Contract for Private Development are amended as follows:
1
RS230\\66\\967219.v3
Qbhf!43!pg!4:
Section 4.3 Commencement and Completion of Construction Satisfactory Progress to
Completion. Subject to Unavoidable Delays and the Port’s timely approval of the Construction Plans,
and any delays in the Developer’s receipt of the City’s approvals, the Developer shall commence
construction of the Minimum Improvements by no later than August 30, 2024 April 30, 2025. Subject
to Unavoidable Delays, the Developer shall have achieved Substantial Completion Satisfactory
Progress to Completion of the Minimum Improvements by no later than December 20, 2025. All
work with respect to the Minimum Improvements to be constructed or provided by the Developer on
the Property shall be in conformity with the Construction Plans. Following written report thereof
from the Port, the Developer shall make such reports to the Port regarding construction of the
Minimum Improvements as the Port deems necessary or helpful in order to monitor progress on
construction of the Minimum Improvements.
5.Section 5.3 of the Contract for Private Development is amended as follows:
Section 5.3. Conditions Precedent to Financial Assistance. Notwithstanding anything in
this Agreement to the contrary, the Port shall not be obligated to pay the Financial Assistance to
Developer until all of the following conditions precedent have been satisfied:
(a)The Developer has acquired the Property as of August 30, 2024 April 30, 2025;
(b)The Developer and the Port have executed this Agreement and it has been recorded
in the County land records;
(c)The Developer has demonstrated to the Port that it has incurred Qualified Costs in
at least the amount of $500,000;
(d)The Certificate of Substantial Completion has been issued Satisfactory Progress to
Completion has been achieved by December 20, 2025;
(e)The Developer remains eligible for receiving a business subsidy under the Business
Subsidy Act; and
(f)There has been no Event of Default on the part of the Developer which has not been
cured.
When the above conditions have been satisfied, the Port will disperse the Financial Assistance to
the Developer. The Developer understands and agrees that all Spending Plan TIF must be spent
by December 31, 2025. To the extent the Spending Plan TIF is not spent by December 31, 2025,
the Port shall have no further obligation to make any additional payments under this Agreement.
6.Section 10.1(a) of the Contract for Private Development is amended as follows:
(a)Failure by the Developer to acquire the Property in fee by August 30, 2024 April 30,
2025 or failure to satisfy any other condition precedent specified in section 5.3 of this Agreement.
2
RS230\\66\\967219.v3
Qbhf!44!pg!4:
7.Except as amended in this First Amendment, all of the provisions, covenants, terms
and conditions of the Contract for Private Development shall remain unaltered and in full force
and effect.
8.This First Amendment may be executed in any number of counterparts. All such
counterparts will be deemed to be originals and will together constitute but one and the same
instrument.
\[The remainder of this page is intentionally left blank.\]
3
RS230\\66\\967219.v3
Qbhf!45!pg!4:
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
executed as of the date first above written.
ROSEMOUNT PORT AUTHORITY
By
______________,
By
_____________,
STATE OF MINNESOTA)
) SS.
COUNTY OF _____________)
The foregoing instrument was acknowledged before me on this ____ day of
_________________, 2024, by __________________, the ___________ of the Rosemount Port
Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the
Authority.
IN WITNESS WHEREOF, I have set my hand and my official seal this ____ day of
____________, 2024.
Notary Public
STATE OF MINNESOTA)
) SS.
COUNTY OF _____________)
The foregoing instrument was acknowledged before me on this ____ day of
_________________, 2024, by __________________, the __________________ of the
Rosemount Port Authority, a public body corporate and politic under the laws of Minnesota, on
behalf of the Authority.
IN WITNESS WHEREOF, I have set my hand and my official seal this ____ day of
____________, 2024.
Notary Public
4
RS230\\66\\967219.v3
Qbhf!46!pg!4:
WILLY MCCOY’S OF SHAKOPEE, LLC
By
__________________
STATE OF _____________)
) ss.
COUNTY OF ___________)
The foregoing instrument was acknowledged before me on this ___ day of ____________,
2024, by __________________, the __________________ of Willy McCoys of Shakopee LLC,
a Delaware limited liability company, on behalf of the company.
IN WITNESS WHEREOF, I have set my hand and my official seal this ___ day of
_____________, 2024.
Notary Public
5
RS230\\66\\967219.v3
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EXHIBIT A
The property subject to the foregoing First Amendment to Contract for Private
Development is as follows:
\[add platted legal description\]
4865-3537-5316, v. 1
A-1
RS230\\66\\967219.v3
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EXECUTIVE SUMMARY
Port Authority Regular Meeting: August 20, 2024
AGENDA ITEM: Project Updates AGENDA SECTION:
OLD BUSINESS
PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 7.a.
ATTACHMENTS: APPROVED BY: LJM
RECOMMENDED ACTION: Information Item
BACKGROUND
Ongoing and New Projects
ISD 196: The school district has applications in for a plat, rezone, and CUP for a new middle school with
various play areas, sports fields, bus corral and parking areas at the intersection of Biscayne Avenue
and County Road 42.
Kwik Trip: Kwik Trip has submitted plans for a 11,000 sf gas station and stand-alone carwash to be
located at the northwest quadrant of Akron and County Road 42 intersection.
Beirut Restaurant: Beirut will be relocated from West St. Paul to Rosemount. They will be located near
the Aldi grocery store. This location will offer fast-casual counter service with a heavy focus on
catering, ready-made products, and carry-out/take-home services. Staff is working with the owners to
plan a ribbon cutting.
KJ Walk/Rosewood Commons: My Credit Union has submitted a proposal for an 8,130 sf bank that will
include a drive-through and community room. This was approved by the Planning Commission in June,
and the City Council approved their CUP/Minor Amendment in July. KJ Walk is scheduled for PC this
month for a site plan review for two lots within Rosewood Commons Second Addition. One lot will be
for a restaurant and the other is a multi-tenant building that will contain a fast food/drive-through and
other office/retail uses.
Life Time Area: Willy McCoy’s has an updated timeline (spring 2025) and the Port will update the
th
business subsidy agreement to reflect the changes on August 20.
O2B Kids: A day care was approved for an 11,000 sf indoor facility and a 10,786 outdoor play area. This
will be constructed on the northwest side of Akon and 42. Upon completion, there will be 157 students
and 27 staff.
Today’s Life Childcare: An application was received for a new 12,408 sf childcare facility just east of the
current Anytime Fitness building.
Qbhf!49!pg!4:
Speedway: Environmental review was completed in March and the matter was returned to the
foreclosure process. There was a hearing to confirm the sheriff’s sale on June 17th. The six-month
redemption period begins once the order confirming the sale is entered. Thus, the redemption period
ends on or about December 17th – depending upon when the court enters the order. Staff continues
to work with the receivership to get an action plan for the property once the lender can assume
ownership. The City is also maintaining the lawn and any trash issues for the site.
UMore: Staff has been working extensively with the University of Minnesota on the next stages of
UMore development. This has included prospects for industrial and business park uses. These are part
of a larger ongoing discussion for the next stages of UMore’s development. Staff will give an update on
th
Project Falcon and other potential users on the August 20 regular meeting. City Council will be
considering a resolution of support for Project Falcon's Minnesota Forward Fund application at their
meeting on August 20th.
RECOMMENDATION
None
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