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01/10/2012 - City Council Special AGENDA SPECIAL CITY COUNCIL MEETING TUESDAY, JANUARY 10, 2012 5:30 P.M. EAGAN ROOM -EAGAN MUNICIPAL CENTER I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD e a III. JOINT MEETING WITH EAGAN'S LEGISLATIVE DELEGATION 1 9. g' IV. NAVIGATING THE NEW NORMAL PRESENTATION (JOINT MEETING WITH THE APC) V. OTHER BUSINESS VI. ADJOURNMENT Special City Council Workshop January 10, 2012 III. JOINT MEETING WITH EAGAN'S LEGISLATIVE DELEGATION ACTION TO BE CONSIDERED: No formal action is needed. Eagan's legislative delegation has been invited to the workshop to dialogue with the Council regarding legislative issues of importance during the 2012 session. FACTS: • The City of Eagan is represented by State Senators Ted Daley (District 38) and Jim Metzen (District 39), along with State Representatives Diane Anderson (District 38A), Doug Wardlow (District 38B), and Rick Hanson (District 39A). • It is the tradition of the City Council to meet with the Legislative delegation at the beginning of each year, prior to the start of the legislative session. • The enclosed list of Eagan's 2012 legislative priorities and positions has been established to serve as a discussion guide for the Council and delegation. The list purposely does not duplicate the policy positions supported by the City through the League of Minnesota Cities (LMC), Municipal Legislative Commission (MLC), and Metro Cities. The City's priorities and positions are not intended to be comprehensive of every legislative issue important to the City; however, the list does represent the more critical issues facing the City. • The enclosed legislative priorities were distributed to the City Council in the December 16, 2011 Additional Information memo to seek feedback from the City Council on any changes or additions. • The priorities were sent to the Legislative delegation on December 22, 2011 in order that they would have the opportunity to review them in advance of the January 10 workshop. • As of January 5, Representative Wardlow, Daley, and Anderson have indicated they will be in attendance on the 10`". Senator Metzen contacted the City to note he is unable to attend the workshop. Representative Hansen also has a conflict, and noted that if he is able to attend, he will be arriving late. ATTACHMENTS: • Enclosed on page , S is a copy of the letter that was sent to each member of Eagan's legislative delegation, inviting them to attend the January 10 workshop. • Enclosed on page is a copy of the subsequent letter sent to each member of the delegation, which included the City of Eagan's 2012 Legislative Priorities and Positions handout. • Enclosed on pages through 7 is the City of Eagan's 2012 Legislative Priorities and Positions handout, intended to assist the Council as a discussion tool with the legislators. C!ty of Eaaall Mike Maguire November 30, 2011 Mayor State Representative Doug Wardlow Paul Bakken 551 State Office Building Cyndee Fields 100 Rev. Dr. Martin Luther King Jr. Blvd. Gary Hansen Saint Paul, Minnesota 55155 Meg Tilley Council Members Re: Save the Date — January 10, 2012, 5:30 p.m.— Legislative Priority Discussion Thomas Hedges with the Eagan City Council City Administrator Dear Representative Wardlow: On behalf of the Eagan City Council, you are cordially invited to attend the January 10, 2012 City Council workshop, at which the Council would like to dialogue with you and your fellow Eagan legislative delegation members about the City's priorities for the 2012 Municipal Center legislative session. 3830 Pilot Knob Road Eagan, MN 55122 -1810 In keeping with past practice, you are invited to the Council's first workshop of the year 651.675.5000 phone on January 10, 2012 at 5:30 p.m. in the Eagan Room at Eagan City Hall. The City's 2012 651.675.5012 fax legislative priorities will be shared with you in writing in advance of the workshop. 651.454.8535 TDD The City Council looks forward to seeing you at the January 10 workshop to dialogue about the City's priorities and the issues you anticipate addressing in the coming Maintenance Facility legislative session. Please RSVP to Mary O'Brien, Administrative Secretary, at (651) 3501 Coachman Point 675 -5005 or mobrien @cityofeagan.com. Eagan, MN 55122 Sincerely, 651.675.5300 phone 651.675.5360 fax 651.454.8535 TDD . Vim_.... Thomas L. Hedges www.cityofeagan.com City Administrator The Lone Oak Tree The symbol of strength and growth in our community. 3 • 40 0. C ity o f December 21, 2011 Mayor Paul Belden State Representative Diane Anderson Cyndee Fields 525 State Office Building Gary Hansen 100 Rev. Dr. Martin Luther King Jr. Blvd. Meg TINey Council St. Paul, MN 55155 Members Thomas Hedges Re: City of Eagan 2012 Legislative Priorities and Positions City Administrator Dear Representative Anderson: A couple of weeks ago, you received a letter inviting you to attend a meeting with the Eagan City Council on Tuesday, January 10 at 5:30 p.m. in the Eagan Room at the Eagan Municipal Center. The annual meeting is an opportunity to dialogue with the City Municipal Center Council and your fellow Eagan legislative delegation members about the upcoming 3830 Pilot Knob Road legislative session. Eagan, MN 55122 -1810 651.675.5000 phone In preparation for the January 10 meeting, enclosed are the City's 2012 legislative 651.875.5012 fax priorities and positions. It is the Council's intent to discuss these priorities with you on 651.454.8535 TDD the 10 along with any other issues you anticipate arising in the 2012 Legislative session. Maintenance Facility The City Council and staff look forward to seeing you on January 10. If you have not yet 3501 Coachman Point contacted the City regarding your availability that evening, please RSVP to Mary Eagan, MN 55122 O'Brien, Administrative Secretary, at (651) 675 -5005 or mobrien@cityofeafzan.com. 651.675.5300 phone • 651.675.5360 fax 651.454.8535 TDD Sincerely, www.cityafeagan•com Ck4C244r Thomas L. Hedges City Administrator The Lone Oak Tree The symbol of strength and growth in our community. 40 City of Eaton City of Eagan 2012 Legislative Priorities and Positions The following requests and positions represent the Legislative priorities for the City of Eagan during the 2012 Legislative Session. In order not to duplicate what has already been provided to our Legislators, this list does not include every position on the issues that have already been addressed through policy documents set forth by the League of Minnesota Cities (LMC), Metro Cities, or the Municipal Legislative Commission (MLC). The City of Eagan respectfully requests the support of our Legislative delegation on the following initiatives: State Budget and Impact on the City of Eagan • Eagan has maintained low property taxes and has been fiscally prudent for decades, and therefore strongly opposes any measure that would look to address continuing State deficits by taking money from cities' cash flow account for operations. • Eagan maintains its long -held opposition to State imposed levy limits or property tax freezes, as levies are an issue of local control, best addressed by the elected City Council. Transportation Secure Funding for the Continued Phased Improvements for the Cedar Avenue Bus Rapid Transit (BRT) Improvements. • Priority Access improvements are needed to /from the recently completed Cedar Grove Transit Station and the TH 77 expressway. As the only current freeway station on the Cedar BRT Corridor, the Cedar Grove Station will require differently configured access improvements than the curbside access available on other portions of the Corridor. The City is working with Dakota County and MNDOT to move forward with design, but they will not receive priority for installation without adequate funding specific to that purpose. Land Use Consider Modifications for TIF Redevelopment Districts to Offset Effects of the Current Development Economy • The League of Minnesota Cities has adopted a number of Legislative Policies related to modifications of tax increment financing, which the City supports. • In particular, the City of Eagan would support an additional year's extension of the sunset provision for the use of TIF economic development districts through July 1, 2013 to create construction jobs by permitting the tool to be applied to uses that are not traditionally eligible under such districts, including office, retail and housing projects. • The Cedar Grove Redevelopment District faces many of the same development market challenges as other redevelopment districts in the state. The City is currently exploring whether to submit a request 5 2012 City of Eagan Legislative Priorities and Positions Page 2 for special legislation for the Cedar Grove District during this session. However, if there are bills proposed for other districts that address issues similar to those at Cedar Grove, the City may request that the Cedar Grove District be added to the legislation. Support TIF for Businesses Producing IT Products • Current TIF law limits the establishment of Economic Development Districts to those situations that support the expansion of businesses and creation of jobs that manufacture a physical product. • An increasing number of businesses in Minnesota are creating software and on -line publications. The ability of Minnesota cities to support the location and expansion of such businesses will be vital to the state's competitiveness in current and future economies. • Eagan's past experience with Thomson West's (now Thomson Reuters) proposed expansion illustrated the point. While it was clear that the firm's expansion project would create substantial property tax base and a large number of head of household jobs, current TIF law did not recognize it as being the equivalent of manufacturing, which would have permitted the City to consider the formation of an economic development TIF district to support the project. • Instead, the City needed to pursue special legislation to request permission to apply the statute to Thomson. While not all information businesses create products comparable to manufactured goods, state law should be amended to create criteria under which production of information technology products may be defined as manufacturing for TIF purposes. Oppose Industry Efforts to Oversee Building Codes • The Minnesota Department of Commerce uses an effective system to consider the implementation of international building codes and amendments of codes specific to the Minnesota environment and economy. The Code adoption process provides ample opportunity for input from interested parties including the construction industry, building officials and the general public. • Past legislative efforts by the industry to create "code councils" made up of industry representatives and intended to control the Code adoption process would tilt the process away from the public interest and toward industry interests rather than balancing those interests as the current system does. In the past, industry representatives have also proposed authorizing private inspectors, hired by property owners or contractors to take the place of the unbiased inspections by municipal inspectors. The City opposes these efforts. Provide Additional Tools to Minimize Impacts of Foreclosures • Like all cities in Minnesota and around the country, the City of Eagan is focusing efforts on monitoring vacant and foreclosed properties and taking steps to minimize the impacts of vacancies on the properties themselves and their neighborhoods. • Cities will continue to need to use traditional and innovative tools to address this issue. In 2008, Legislation was enacted that requires private utility companies to share information regarding gas and electric shut offs with local units of government to aid in efforts to identify vacant or uninhabitable properties. Cities use this information as part of their database for and monitoring those properties for maintenance issues and to minimize vandalism and theft. 2012 City of Eagan Legislative Priorities and Positions Page 3 • To build on the value of the utility shut off notice requirement, the City would also support legislation that would authorize water shut offs to properties whenever cities receive information from other utility companies that would suggest that the home is not heated. Currently cities may not shut off water service to unheated or vacant homes unless the City utility account is delinquent or the owner of record requests /consents to it. This is despite the fact that an unheated home is not safe for occupancy under the building code. • In addition, the City would support similar legislation that would obligate the owner of a property that is in foreclosure or vacant for any reason to provide contact information to the City that would pennit prompt attention to matters that arise through property monitoring programs, including the need to secure buildings, the need to keep them in good repair during vacancies, the need to remove trash and maintain yards, etc. Communications • The Minnesota Legislature successfully amended tax code in 2011 to make it more attractive for Minnesota to compete with other states in landing large data centers, a currently expanding area of the economy. However, the legislation effectively limits those incentives to large single user facilities, even though multi- tenant data centers (such as the one proposed for Eagan) would not be eligible, despite achieving the same size and scale in aggregate. Modifications are needed to the new statute, given that that multi -tenant centers will attract an estimated $5 billion worth of investment in North America. Other states, like Virginia's tax code, recognize the growing trend of shared -use facilities. • Phone companies, like Century Link want to extend video service to MN customers and compete with cable companies like Comcast. They are willing to sign a video franchise. Minnesota law was changed to allow phone companies to build out only to their footprint, and not require build out to portions of a city beyond their service territory. Even then, entire build out is very expensive and requires more capital than financial markets are typically willing to finance. The current global trend where fiber optics are being built directly to the home, is to require build out whenever 50% of a neighborhood says they would like the service. This is a financeable model that would grow jobs and services, at a much lower capital investment. 7 Agenda Information Memo Eagan City Council Workshop January 10, 2012 IV. URBAN LAND INSTITUTE PRESENTATION REGARDING NAVIGATING THE NEW NORMAL FOR FUTURE DEVELOPMENT NOTE: The City Council has a goal of meeting jointly with its advisory Commissions at least annually. The Advisory Planning Commission will be joining the City Council for this presentation and discussion. Given the nature of the topic, the Department Directors have been invited to attend and members of other Commissions may be in the audience as well. DIRECTION TO BE CONSIDERED: To receive a presentation regarding Navigating the New Normal and discuss implications for Eagan's future vitality and growth. FACTS: • The Urban Land Institute of Minnesota developed the Navigating the New Normal Program as a tool for cities interested in having a better understanding of the factors affecting development and redevelopment in the economic environment that is evolving as a result of the Great Recession. Gordon Hughes, the former Edina City Manager, and Cathy Bennett, with whom the City worked on the Opportunity Cities program, are coordinating the program on behalf of ULI MN. This program is provided at no -cost to the city and is funded by the MN Housing, Family Housing Fund and Metropolitan Council. • Since the initiation of the program in mid -2011, Mr. Hughes and Ms. Bennett have partnered with four cities around the region to present community change information and facilitate a panel discussion involving representatives of the business and residential development and local government finance communities in the context of each city's development potential and realities. • The Navigating the New Normal program utilizes some of the community change data that was developed in the Opportunity Cities program to define residential potentials and applies it more generally to all types of physical and economic development. A copy of the presentation materials from the Opportunity Cities program is attached as a reminder of that discussion and Ms. Bennett will present additional information regarding jobs and business growth as part of this discussion. • As outlined in the attached Presentation and Discussion Agenda, Mr. Hughes and Ms. Bennett will present an overview and Mr. Hughes will facilitate the panel discussion, followed by a discussion of the topics covered by the panel, Council and Planning Commission. • As an outcome of the presentation and discussion, if the Council and Commission find topics or concepts relative to long term planning, development expectations for specific O areas, economic development efforts or other issues they would like to discuss further, it would be helpful to identify them at the conclusion of the meeting. ATTACHMENTS: • Presentation and Discussion Agenda on page /0 • ULI MN Navigating the New Normal Program Summary on pages 1 I through 10a • Community Change Presentation from December, 2010, Opportunity Cities presentation on pages 1;) throughca) U �� : . :4__ � at i ar ,, � , - - 11; Institute _ - j *7,4 / 6.m Navigating the New Normal '; � = ` g g C - - A ULI Minnesota (ULI MN) public official education f.;" workshop City of Eagan Tuesday, January 10, 2012 6:30 -8:30 P.M. Eagan City Hall Welcome and Introductions — Caren Dewar, Executive Director, ULI Minnesota- 5 minutes Overview of the New Normal & Community Change Data — Gordon Hughes & Cathy Bennett, ULI MN — 30 minutes Panel Discussion — 40 minutes Eric Anderson, New Perspective Senior Living Jay Lindgren, Dorsey and Whitney Mark Ruff, Ehlers Financial John Shardlow, Stantec Panelist Q & A — Panelists and Workshop Participants — 40 minutes Wrap - Up/Next Steps — Staff — 5 minutes /0 orit Urban 3:ri 7 i 11 Minnesota .ww:privri,-,, Navigating the New Normal �•.. A ULI Minnesota (ULI MN) public official e 1 education workshop - __ : ; 1 7 - "' _ ! Realizing great development and redevelopment opportunities for your community is difficult even in the best of times. The `Great Recession' has made this job especially daunting for everyone — including communities that were previously well - positioned in the marketplace. Many believe this is not a short-lived situation, but represents a `new normal' for the marketplace, i.e. the metrics that will govern the economics of development and redevelopment in the foreseeable future will be fundamentally different than the past. Navigating the New Normal is a ULI MN workshop that offers a practical approach to the new challenges of development and redevelopment. It focuses on your city —or a cluster of cities — in a way that strengthens your understanding of today's realities of development and redevelopment. Navigating the New Normal is designed to foster a dialogue about the opportunities and challenges inherent in a new economy based upon shifts in the market and changing demographics. Navigating the New Normal Objectives ULI MN volunteers will partner with you to lead an interactive two hour workshop geared towards your City Council, Planning Commission, EDA/HRA. members, and staff. The ULI MN team will comprise a cross section of professionals representing disciplines such as design, finance, development, planning and marketing. The workshop will be held at a locale and time of your choosing. The workshop is perfect for a pre - Council or Planning Commission meeting work session. City clusters are encouraged but not required! A workshop involving two or three cities with similar interests may provide a great venue for presentation and dialogue. Ii Workshop participants will develop a better understanding of: • the impact of the `new normal' on future growth patterns, demographic trends, and market preferences; • your city's households, shifts in household moves, housing types, and labor and commute patterns with a focus on strategies to support a full range of housing choices connected to transportation options and jobs; and • how to position your community to attract the best quality development. There is no cost to participate! Navigating the New Normal is an outreach program designed to foster meaningful dialogue between public and private sector leaders. ULI MN is able to provide this workshop through the generous financial support from the Family Housing Fund and Minnesota Housing. In addition, access to Community Change Data is possible through a funding partnership with the Metropolitan Council. Host communities are only asked to arrange for a meeting location, cover printing costs, and provide refreshments for participants. For more information about Navigating the New Normal, please contact Katie Anderson, ULI MN Associate, at 612 - 338 -1332 or katherine.anderson@uli.org. ULI Minnesota actively engages public and private sector leaders to foster collaboration, share knowledge and join in meaningful strategic action to create thriving, sustainable communities. 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