10/27/1988 - City Council Special MINUTES OF A SPECIAL MEETING OF
THE EAGAN CITY COUNCIL
Eagan, Minnesota
October 27, 1988
A special meeting of the Eagan City Council was held on Thursday, October
27, 1988, at 6:00 p.m. , at the Eagan Municipal Center Building. Present were Mayor
Ellison and City Councilmembers Egan, Gustafson, McCrea and Wachter. Also present
were Director of Finance VanOverbeke, Director of Community Development Runkle,
Director of Public Works Colbert, Director of Parks and Recreation Vraa and City
Administrator Hedges.
COMMUNITY CENTER
Director of Parks and Recreation Vraa reviewed the most recent drawings
for the proposed Community Center Building as prepared by the City's architectural
firm, Hastings and Chivetta. He reviewed the entire floor plan, off-site
improvements and the orientation of the building as it relates to Pilot Knob Road
and the Municipal Center Building.
There were a number of questions and comments shared by members of the
City Council regarding the up to date drawings and especially conveyed a
concurrence with the new site location as to how it relates to the property. After
further discussion, Mayor Ellison thanked the Director of Parks and Recreation and
0 the Advisory Parks and Recreation Commission for all their work to date and
encouraged the Reaction Committee and others to continue their work on the project.
City Administrator Hedges stated that a final cost estimate and building design is
expected for Council review in late November.
TIF WORKSHOP TO CONSIDER MAJOR CAPITAL TRANSPORTATION IMPROVEMENTS
Mayor Ellison welcomed the Advisory Planning Commission members, Ron
Voracek and Scott Merkley and four members of the Economic Development Commission
including Candace Garry, Bill Duggan, George Traynor and Paul Krauss. City
Administrator Hedges introduced the City's fiscal consultant, Dave MacGillivray,
of Springsted, Inc. ; Glen VanWormer, transportation consultant from SEH; John
Shardlow of Dahlgren, Shardlow and Euben, Inc. , Planning Consultants for Northwest
Airlines; Don Diddams, Briggs and Morgan, Financial Advisor for Northwest Airlines;
and Tim Thornton, General Counsel for Northwest Airlines. City Administrator
Hedges stated that Northwest Airlines has requested the opportunity to meet with
the City of Eagan and discuss their future development plans and how that relates
to the financing of transportation system improvements in the area surrounding the
NWA world headquarters. Mr. Thornton, Counsel for NWA stated that 2,250,000 square
feet of additional building space is planned by NWA as an ultimate build-out in
Eagan. He stated that due to MPCA standards that regulate air emission, additional
transportation improvements will be required in order to receive an indirect source
permit allowing the expansion to occur. Mr. Thornton emphasized the importance of
proceeding expediently with transportation improvements if Northwest is to continue
with its scheduled corporate expansion.
• Mr. John Shardlow representing Dahlgren, Shardlow and Euben presented a
history of the parcel and using visual aids represented the various off-site state
and interstate highway improvements that will be required. He discussed the high
corporate growth rate of NWA and how an environmental impact statement has been
prepared and approved with the original 1985 Lone Oak PUD. He further stated that
his firm has advised NWA to proceed with the request of off-site transportation
improvements and that tax increment financing would be the most feasible revenue
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• source available to the City and NWA for financing the type of transportation
improvements that will be needed. Mr. Don Diddams appeared from Briggs and Morgan,
representing NWA, and presented a process for establishing a project area and
development program and stressed the urgency for proceeding with the tax increment
financing plan by February 1989. He stated that the legislature has reviewed tax
increment financing and, more specifically, the option of using the Economic
Development option of TIF financing and because of their involvement, it is
necessary that the City proceed and be grandfathered on this project before any
statutes are changed.
Director of Public Works Colbert addressed the need for completion of the
Comprehensive Transportation Plan. He further stated that the City has authorized
SEH to perform a study of northeast Eagan and that will be completed by the end of
1988 providing various travel demand management options that will even out the
transportation flow. Mr. Glen VanWormer, the City's transportation consultant from
SEH, stated that this report will be done by the end of December for Council
review. He commented that growth rates are increasing very rapidly in the Dakota
County and that NWA has been included as a model in the transportation study. The
transportation study will include a known CIP and will look at land use concepts of
neighboring communities and further gave the example that TH 149 could increase
traffic/number of trips by as much as five times by calendar year 2010. Mr.
VanWormer presented various alternatives expressing the significance of
coordinating all results with MnDOT and the Met Council. The Director of Finance
discussed other financing alternatives stating that creation of a special
assessment area would be extremely difficult and suggested that tax increment
• financing is the only viable revenue source available to the City given the
magnitude and cost for off-site transportation improvements. Dave MacGillivray,
representing Springsted, Inc. , the City's fiscal consultant reviewed at length the
mechanics of tax increment financing, the development district plan and development
agreement, process for implementing TIF, the benefits and costs to the City and
number of policy questions such as, the "but for" test, fiscal disparities, City's
security guarantees and City administrative costs. Following his presentation,
Mayor Ellison asked for comments and input from the Advisory Planning Commission or
City Councilmembers. There were a number of questions about the traffic patterns
and what type of building potential there is to support a tax increment financing
bond issue. Mr. VanWormer stressed the importance of defining the large project
area realizing that increased trips to NWA could impact 35E at Lone Oak Road and
the 35E/494 intersection as well as TH 149 at 494. After further discussion and
input by the audience and those contributing as a part of the work session, Mayor
Ellison suggested that the staff and Northwest Airlines proceed with a joint
funding package that considers tax increment financing as the City of Eagan's
participation and that State and Federal funding be pursued by NWA with the
appropriate agencies. The City Administrator was directed to proceed with the
security agreement and preparation of a project and TIF area for consideration at a
December City Council meeting.
OTHER BUSINESS
There being no further business, the meeting was adjourned at 10:00 p.m.
TLH
October 27, 1988 t )Waal.
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