01/05/1988 - City Council SpecialMINUTES OF AN EXECUTIVE SESSION OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
JANUARY 5, 1988
An executive meeting of the Eagan City Council was held on
published and mailed notice to all City Council members at the City
Hall on Tuesday, January 5, 1988 at 8:00 p.m. The meeting was held
in City Administrator Tom Hedges' office and those present were
Mayor Ellison, and Councilmembers Wachter, Egan and Gustafson. Also
present were City Administrator Tom Hedges, Public Works Director
Tom Colbert, Assistant City Administrator Jon Hohenstein, Assistant
Planner Steve Schwanke, Special Counsel Chris Dietzen and and City
Attorney Paul Hauge. A tape recording of the proceedings was done
on a mini - cassette recorder, required under the Rules.
City Attorney Hauge explained the purpose of the meeting was to
discuss in closed meeting, the litigation entitled Robert and Grace
O'Neil vs. City of Eagan involving three separate lawsuits in Dakota
County District Court. He indicated that Judge Jack Mitchell was
present in the Council chambers and desired to explain his reasons
for being at the City Council meeting.
Judge Mitchell was then invited into the Administrator's office
and explained to the Council that his purpose was to be present at
the meeting to discuss the potential settlement of the three
actions, and that he had his court reporter and clerk present with
him. He suggested that the Council meet and discuss the options
available for settlement of the action and that he would then
convene Court and implement the settlement process, including the
signing of an order upon submission of a Stipulation by the O'Neils
and the City.
Jerry Duffy, the attorney for the O'Neils was also present only
during the time that Judge Mitchell was in the City Administrator's
office.
Judge Mitchell and Jerry Duffy were then excused and the Council
members discussed in detail the implications of the settlement of
the miscellaneous O'Neil actions. They reviewed a planned
development guide document prepared by Dale Runkle and John Voss
covering the progression toward the zoning of the 120 acre O'Neil
property on Yankee Doodle Road and also a stipulation prepared by
Paul Hauge intended to cover the terms for settlement.
There was considerable discussion regarding a proposed maximum
amount that the City would be responsible for and an indemnification
on behalf of the O'Neils whereby in the event that the decision in
the condemnation action exceeds that amount, that the O'Neils would
be responsible for holding the City harmless for any amount
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Exec. Council Minutes
January 5, 1988
exceeding the fixed maximum amount. In addition, there was
discussion among councilmembers about the O'Neils paying for any
costs incurred by the City, including attorneys fees in defending
any legal action regarding the terms of the stipulation for the
rezoning of the property, if the rezoning takes place.
There was general consensus that the City should not be
responsible for an amount in excess of approximately $45,000.00 or
5.7% of the potential cost for the acquisition of the two ponds and
utility easements on the O'Neil parcel.
John Voss, the City Planning Consultant also joined the meeting
at approximately 8:30 and considerable discussion ensued regarding
terms of the proposed settlement.
At approximately 9:00 p.m., Chris Dietzen and Paul Hauge left
the meeting and the Council then discussed a letter from Chris
Dietzen that the Council approve the termination of his services as
special counsel in the O'Neil condemnation action.
Upon motion by Egan, seconded Gustafson, it was resolved that
the request of Chris Dietzen for termination of his roll as special
counsel in the condemnation action be and hereby is approved. All
voted yes.
The Mayor and all Councilmembers unanimously requested that
Chris Dietzen stay on as special counsel relating to the O'Neil
zoning case also.
At about 9:15 p.m., Chris Dietzen and Paul Hauge re- entered the
meeting with the City Council in the City Administrtor's office and
relayed the response from the O'Neils acquired through Jerry Duffy
and Harold Sheff, another O'Neil attorney. Instructions were given
to Mr. Dietzen and Mr. Hauge concerning the proposed settlement of
the zoning and assessment actions and proceeding on the
condemnation action. In addition, there was discussion concerning
an action commenced on December 31, 1987 entitled Eagan Heights
Commercial Park vs. Eagan. The case involves the Town Centre 70 and
Town Centre 100 developments and the agreements relating to the
Federal. Land and City of Eagan agreements relating to the
acquisition of the O'Neil pond easements. The issue of a potential
declaratory judgment action was also reviewed to determine the
validity of those agreements in respect to the pond easement
acquisition.
Whether a hearing should be held before the Planning Commission
regarding the revision to the planned development, the fact that the
trial would start on Monday, January 11, 1988 if no settlement was
reached, and the effect of a court order to rezone the property
according to the stipulation were issues also discussed.
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Exec. Council Minutes
January 5, 1988
After considerable negotiation, the executive session ended at
approximately 9 :30 p.m. and the Council reconvened its regular
meeting in the Council chambers with instructions to the two
attorneys concerning settlement terms, including a maximum recovery
of $45,000 from the City by the O'Neils in the condemnation action.
City Clerk
EXECUTIVE COUNCIL SESSION
At approximately 10 :30 p.m., Mayor Ellison recessed the regular
City Council meeting and an executive session was called at the
front of the City Council chambers, including Chris Dietzen, Paul
Hauge and Tom Hedges, together with all councilmembers. Further
discussion ensued regarding the proposed settlement of the O'Neil
action and Council agreed with the general terms, subject however,
to the preparation of a detailed stipulation regarding all three
actions. Special Counsel Dietzen would recite into the record of
the District Court, at the City Council meeting, the general terms
of the agreement. A maximum of $100,000 recovery against the City
by the O'Neils in the condemnation proceeding was authorized with
assurance that the balance of the funds will be returned to the
City.
The executive session lasted for approximately 10 minutes and
was then adjourned, after which time the regular City Council
meeting again was convened by the Mayor.
City Clerk
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