Big Vision for a Big Gravel Pit in Apple Valley

Apple Valley city officials have big plans for a massive, 455-acre open pit gravel mine in the southeast corner of the city.

The mine, owned by Fischer Sand and Aggregate, isn't going anywhere soon; Apple Valley City Administrator Tom Lawell says operations there will likely continue for a decade or more. But that hasn't stopped city officials from laying the groundwork for a significant redevelopment project at the site, located south of 150th St. W. in the southeastern corner of the city.

"We believe that [site] may be redeveloped or evolved into a business campus with office and medical uses," Apple Valley Mayor Mary Hamann-Roland said.

Earlier this year, District 57A Rep. Tara Mack (R) authored two bills at the behest of Apple Valley city officials that would allow the city to create a Tax Increment Financing (TIF) district at the Fischer mining site.

When new development is constructed on a site, the market value of that property and its property taxes typically rise. TIF districts use the extra property taxes generated as a result of development—called the tax increment—to retroactively pay for certain development costs within the district.

Proceeds from a TIF district could help pay for a portion, or all of, the costs the city may incur to bring utilities, including roads and sewage pipes, to the 455-acre site. City officials estimate as much as $50 million may be needed to build the necessary infrastructure on the site prior to any private development.

TIF money could also fund strategic incentives for private businesses to develop on the site, Lawell said.

"Certainly this land could develop on its own based on a regular timeframe, but it may not develop with the type of land uses we’re looking for," Lawell said.

Apple Valley officials have yet to decide whether to create a TIF district on the Fischer mining site—Mack's legislation would simply put the option on the table for the Apple Valley City Council, which may consider implementation at a future date.

But if they do, it wouldn't be the first time the city has used TIF funding to reshape a former gravel mining area. The roughly 60-acre Fischer Marketplace, located north of 150th Street W. and east of Galaxie Avenue, was also former sand mining operation owned by Fischer Aggregate. In 2003, the city implemented a TIF district in the area, according to Hamann-Roland. Now, the marketplace is home to a Sam's Club, Menard's, Barnes & Noble and other retailers and restaurants.

Hamann-Roland calls the Fischer Marketplace "an incredibly successful example of a judicious use of TIF funding." But her vision for the 455-acre mining site south of 150th St. W. is drastically different.

Rather than retail, the mayor hopes the city can entice international companies to build major business campuses on the site—creating "head of household" jobs in the city. Hamann-Roland estimates that the fully-developed site could bring between 7,600 and 9,300 jobs to the city and as much as 2 million square feet of additional development.

Although the Fischer site is currently zoned for sand and gravel mining, city officials updated Apple Valley's Comprehensive Guide Plan in 2010. At that time, the city chose to designate portions of the site for "Major Business Center" development. Other portions of the 455-acre property were designated for additional commercial development.

The city, Hamann-Roland believes, has also set the stage for major investment by creating the right mix of retail, recreation and housing in the city.

"I call them building blocks, because you can’t get a big company without those necessary building blocks," Hamann-Roland said. "We have everything that’s necessary for these business to come here, and for them to have quality of life."