03/20/1990 - City Council RegularMINUTES OF A REGULAR MEETING OF THE
EAGAN CITY COUNCIL
EAGAN, MINNESOTA
MARCH 20, 1990
00060
A regular meeting of the Eagan City Council was held on Tuesday,
March 20, 1990, at the Eagan Municipal Center. Present were Mayor Egan
and Councilmembers Wachter, Gustafson, McCrea and Pawlenty. Also present
were City Administrator Tom Hedges, Community Development Director Dale
Runkle, Public Works Director Tom Colbert, and City Attorney James
Sheldon.
AGENDA
City Administrator Hedges recommended the following changes to the
agenda:
Item 1, Department Head Business, Parks and Recreation Department,
Trapp Farm Park Land Acquisition, request to continue to the April 3,
1990, regular City Council meeting.
Item I, Consent Agenda, Duckwood Square Final Plat, request to
continue indefinitely.
Item J, Consent Agenda, Frank's Nursery Crafts Addition, request
to continue indefinitely.
Item K, Consent Agenda, Park Center Final Plat, request to continue
indefinitely.
Wachter moved, Pawlenty seconded, a motion to continue Item 1 of
Department Head Business, Parks and Recreation Department, Trapp Farm
Park Land Acquisition to the April 3, 1990, regular City Council meeting.
Aye: 5 Nay: 0
McCrea moved, Wachter seconded, a motion to approve the agenda as
amended. Aye: 5 Nay: 0
MINUTES
Wachter moved, Pawlenty seconded, a motion to approve the minutes
for the March 6, 1990, regular City Council meeting. Aye: 5 Nay: 0
DEPARTMENT HEAD BUSINESS
CONSIDER DISPOSITION OF SURPLUS PROPERTY
HOUSE AT CLIFF PILOT KNOB ROADS
The Director of Public Works reported that only one bid was received
for the removal of the house located on the property slated for the
Joseph Connolly Addition and that bid is unusually low. The City
Councilmembers had questions as to whether any alternatives had been
explored for the use of the house; however, because the building will
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March 20, 1990
have to be moved and it is economically unfeasible to move the house to
another location solely for storage purposes, it was recommended that
the bid be accepted.
Wachter moved, Gustafson seconded, a motion to receive the bids for
the removal of surplus property (house on northeast corner of Cliff and
Pilot Knob Roads) and award the contract to Otting House Movers for $375,
conditioned upon Otting's obtaining the necessary moving permits.
Aye: 5 Nay: 0
VARIANCE TO WORK HOURS
COVENTRY PASS GRADING PERMIT /ENEBEK CONSTRUCTION
The Director of Public Works explained the necessity for the
extended hours of operation for Enebek Construction on the Coventry Pass
grading. Councilmember McCrea asked that staff notify the nearest
neighbor, the Don Klein's, regarding the variance.
McCrea moved, and Gustafson seconded, a motion to approve a variance
to Subdivision Ordinance 4.30, 5B, for Enebek Construction Company to
allow 24 -hour operations within Coventry Pass for two separate, two -week
periods to be defined by City staff between April 16 and July 27, 1990,
subject to following condition:
1. If complaints are received from off -site property owners, the
applicant will be given an opportunity to address the complaint.
However, if the complaint cannot be satisfactorily resolved, the Council
reserves the right to revoke the variance. Aye: 5 Nay: 0
FUNDING MAINTENANCE /DAKOTA COUNTY TRAILS
A. Personnel Items.
CONSENT AGENDA
00081
Wachter moved, Gustafson seconded, a motion that the present program
for funding and maintenance of Dakota County trails be continued in its
present form unless unforeseen circumstances arise, at which time the
Council may wish to reconsider. Aye: 5 Nay: 0
1. It was recommended that an insurance proposal for the City's
life, short -term disability and AD D group insurance coverage be
accepted.
2. It was recommended that an internship in the Parks Recreation
Department for Jennifer Peterson be approved.
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March 20, 1990
B. Declare 1985 Ford as Surplus Property /Authorize Sale.
It was recommended that the 1985 Ford Crown Victoria be declared
surplus property and its sale authorized to Suburban Auto Sale in the
amount of $1,016.
C. Declare Two (2) K -55 Moving Radar Units as Surplus property and
Authorize Sale.
It was recommended that two (2) K -55 Moving Radar Units purchased
in 1983 be declared as surplus property and their sale by the Police
Department be authorized.
D. $700 Cash for Trash Winner.
It was recommended that Mr. Malcolm Heinle be recognized as the
recipient of a $700 Cash for Trash award.
E. Contract 90 -2, Park Shelter Buildings for Ohmann, Bridle Ridge,
and Northview (Blackhawk Deleted).
It was recommended that the plans and specifications for park
shelter buildings at Bridle Ridge Park, Ohmann Park and Northview
Athletic Fields be approved and the advertisement for bids be authorized
with a bid opening on April 24, 1990.
F. Purchase of Replacement Vehicles for Parks Recreation
Department.
It was recommended that the purchase of replacement vehicles through
Hennepin County purchasing be approved for the Parks Department for a
3/4 Ton pick -up and a 1 -Ton pick -up chassis and cab and that the
advertisement for bids be authorized for a dump box for the 1 -Ton
chassis.
G. Proclamation, Earth Day, April 22, 1990.
It was requested that the Council proclaim April 22, 1990, as Earth
Day in the City of Eagan.
R 90.13
H. Parks Maintenance Tractor.
It was recommended that the bids for a replacement tractor in the
Parks Maintenance Division be received and the sale awarded to H W
Equipment for $29,780.
I. Duckwood Square Final Plat.
00682
When the agenda for this meeting was approved, the Duckwood Square
final plat was recommended for continuance.
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March 20, 1990
J. Frank's Nursery and Crafts Addition Final Plat.
00083
When the agenda for this meeting was approved, the Frank's Nursery
and Crafts Addition final plat was recommended for continuance.
K. Park Center Final Plat.
When the agenda for this meeting was approved, the Park Center final
plat was recommended for continuance.
L. Receive Final Assessment Roll /Schedule Public Hearing (Pond AP-
50 Trunk Storm Sewer).
It was recommended that the final assessment roll for Project 452A
(Pond AP -50) be received and a public hearing scheduled for May 1, 1990.
M. Receive Final Assessment Roll /Schedule Public Hearing (Alden
Ponds Streets Utilities).
It was recommended that the final assessment roll for Project 452
(Alden Ponds Streets Utilities) be received and a public hearing
scheduled for May 1, 1990.
N. Project 473, Reconsider Final Assessment Objections /Schedule
Public Hearing (Pilot Knob Road Trunk Storm Sewer).
It was recommended that the final assessments for miscellaneous
parcels under Project 473 (Pilot Knob Road Trunk Storm Sewer
miscellaneous objections) be reconsidered and a new final assessment
hearing be scheduled for May 1, 1990.
O. Project 494, Reconsider Final Assessment /Schedule Final
Assessment Hearing (Wescott Road Streets Utilities.
It was recommended that the final assessment roll for Project 494
(Wescott Road Streets Utilities Miscellaneous Objections) be
reconsidered and a new final assessment hearing scheduled for May 1,
1990, for the affected parcels.
P. Project 491, Reconsider Final Assessment Roll /Schedule Final
Assessment Hearing (Eagan Hill Farms Trunk Utilities Miscellaneous
Objections.
It was recommended that the final assessment roll for Project 491
(Eagan Hill Farms Trunk Utilities Miscellaneous Objections) be
reconsidered and a new final assessment hearing scheduled for May 1,
1990, for the affected parcels.
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March 20, 1990
00084
Q. Project 505, Reconsider Final Assessment Roll /Schedule Final
Assessment Hearing (Country Hollow Trunk Utilities Miscellaneous
Objections).
It was recommended that the final assessment roll for Project 505
(Country Hollow Trunk Utilities Miscellaneous Objections) be
reconsidered and a new final assessment hearing scheduled for May 1,
1990, for the affected parcels.
R. Contract 89 -14, Final Payment /Acknowledgement of Completion
(Coachman Water Treatment Plant Dehumidification).
It was recommended that the completion of Contract 89 -14 (Coachman
Water Treatment Plant Dehumidification) be acknowledged, that the
fourth and final payment to Enviro -Con, Inc., in the amount of $3,000 be
authorized, and the project be accepted for maintenance subject to any
warranty provisions.
S. Contract 90 -04, Resolution Restricting On- Street Parking (Rahn
Road Diffley to Beau D'Rue Drive).
It was recommended that a resolution restricting on- street parking
for Contract 90 -04 (Rahn Road Diffley to Beau D'Rue Drive) be approved
and the Mayor and City Clerk be authorized to execute all related
documents.
R -90.14
Pawlenty moved, Wachter seconded, a motion to approve the Consent
Agenda except as described with the adoption of the agenda. Aye: 5
Nay: 0
At this time, Mayor Egan recognized the achievement of one of
Eagan's residents, Bea Blomquist. Ms. Blomquist was the recipient of the
Athena Award, given each year to a Woman of Distinction in Dakota County.
PUBLIC HEARINGS
RESOLUTION FOR DEVELOPMENT PROGRAM AND TAX INCREMENT
PLAN FOR DEVELOPMENT DISTRICT NO. 3 /TRI -LAND PROPERTIES
RESOLUTION FOR DEVELOPMENT AGREEMENT
FOR DEVELOPMENT DISTRICT NO. 3
The public hearing for this item began with the Mayor reviewing the
procedures to be followed for the public hearing. Following the Mayor's
review, the City Administrator discussed the process for this application
and the complexity of the issue before the Council. After a brief
presentation, the City Administrator called the audience's attention to
an informational fact sheet prepared by the City which explained the TIF
proposal in more detail.
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March 20, 1990
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Dave MacGillivray, the City's bond counsel, addressed his remarks
to the on -going negotiations on the development agreement. He said
that an acceptable development agreement has not yet been completed.
Mr. Rollie Crawford, counsel for the developer, then made his
presentation. He pointed out that he had brought a court reporter to
record the details of the meeting. Mr. Crawford outlined the issues
before the Council but, in addition, pointed out that the proposal is
not a zoning issue or a question about proper land use; it is not a
request to spend tax dollars on behalf of the developer but a tax
increment financing plan, and it is not a question of whether this
proposal offers competition to other businesses.
Brad Swenson addressed his remarks to the physical layout of the
proposal. He described the proposal as consisting of 95,000 s.f. of
retail with a grocery at one end, a theater at the other, with
convenience and specialty shops in between; a medical /bank building; an
outlot reserved for a service station; and an ice arena.
Sid Inmann from PubliCorp was the next to address the Council. Mr.
Inmann confined his remarks to the financial aspects of the proposal.
He briefly discussed the taxes, the "but for" test and said he was
available for questions.
Mr. Rollie Crawford again spoke. He said this was a culmination of
a lot of hard work. He urged that the public hearing go forward and that
the details would be nailed down. He said that perhaps the wording in
the development agreement was not there yet but he believed they would
have an agreement completed.
Mayor Egan then suggested that the Council collect questions and
then field the answers all at once at the end of the public portion of
the hearing.
The first of the public to address the Council was Doug Lee. He is
a hockey parent and he has recently run ads in the local newspapers
regarding the tax increment financing. He introduced Bob Utecht who has
been active in hockey in Minnesota for many years.
Mr. Utecht encouraged the development of ice rinks. He discussed
the average costs for these rinks and stated that the average contruction
costs for a rink in the Metro area was $721,000, not including land
costs. Mr. Utecht said that the cost figures he used had not been
updated for inflation.
Mr. Lee then returned to the podium and pointed out that the
original project for Eagan Center, which was brought to the Council on
August 15, 1989, did not mention an ice arena nor tax increment
financing. Because of this, Mr. Lee said the development failed the "but
for" test. He also acknowledged that the bank /medical building grading
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March 20, 1990
00086
began late in the fall of 1989 and a permit was issued for this grading.
He said that tax increment financing provides that any prior construction
must be excluded from a tax increment financing district. When asked,
the City Administrator stated Mr. Lee was correct.
Mr. Lee then expressed concerns that if the ice arena were a tenant
of the shopping center, that in the future, the developer could have
someone else move into this space. Mr. Lee was also concerned about
school district budget cuts and asked why the City would subsidize a
shopping center when this money could be used in a different direction.
He asked what would happen if the ice arena could not keep going? Would
the City then subsidize the operation of the ice arena? He also said it
was difficult for existing merchants to compete with a center that was
built with government subsidies. Mr. Lee stated that the ice arena was
used as a smoke screen to get tax dollars to build a shopping center and
urged the Council to vote against this project.
Mr. Paul Taylor, who lives on Heine Strasse, was the next to address
the Council. He said it is a myth that the project would not cost tax
dollars. Further, he stated that if nothing else, the project would
require additional City services. Mr. Taylor mentioned that the
Legislature is proposing a bill at this time that would require the
cities to make up any lost revenues to the school districts due to tax
increment financing. He then quoted losses regarding ice arenas. He
mentioned the Burnsville arena and said that perhaps in the future there
would be pressure to bail out the ice arena if the project failed. Mr.
Taylor said that City support through tax increment financing would be
a big mistake.
The next person to address the Council was Ben Bartel, a young man
who spoke on behalf of his hockey team. He said that school district
#196 had built a high school and a middle school without a hockey rink
but that other sports teams had received their arenas: basketball,
tennis, football. He said the fate of the hockey team was in the
Council's hands.
Next to speak was John Gustin who lives on Woodlark. Mr. Gustin
said the major issue in this case is the tax increment financing and he
urged the Council to vote no.
Next was Sue Grousz who urged the Council to vote no as the project
failed the "but for" issue and the development would occur anyway. She
granted that the City needs and wants a hockey rink but she didn't want
tax increment financing used as the means to get one. She said this was
a bare minimum project.
The next person to speak was Mark Springer and he also urged the
Council to vote no. He reported that for the last 4 or 5 years, his
taxes have been going up and he wondered whether tax increment financing
was a fancy word for tax increase?
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March 20, 1990
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Jim Curry then spoke to the Council. Mr. Curry does not own the
present Eagan Center property but did own it from 1968 -1986. Mr. Curry
developed much of the surrounding property. He briefly discussed the
environmental impact statement done earlier on the PUD and that the
infrastructure was in place. He said Mr. Swenson had put together a good
project and that while it was controversial, Eagan would love the arena.
Next was Bill Duggan who lives on Gabbro. He is a member of the
Economic Development Commission and gave Tri -Land Properties credit for
creative marketing. Mr. Duggan also stated that he had voted against the
project when it was before the Economic Development Commission. He
wondered how many jobs would be created by the use of this tax increment
financing. He would appreciate a detailed explanation of the "but for"
test. He also questioned whether the development would take place, with
the exception of the ice arena, even if the tax increment financing were
not used. He said history would indicate that it would although perhaps
not how or on the schedule that Tri -Land Properties would wish. He said
that approval of tax increment financing for this type project would set
a dangerous precedent. He questioned whether the Economic Development
Commission would then hear proposals for community swimming pools,
basktetball courts, etc., all tied to other strip malls. He said Eagan
was being placed in a difficult situation and not in a favorable light
at the Legislature because of this proposal. While he agreed that the
City needed an arena, he did not think this was the best way to finance
one.
Allen Benning, 4174 Blueberry, stated that the ice arena is a
project that meets the "but for" test. He then chronicled the times that
they have tried to get an ice arena in Eagan: a school with an ice arena
was denied, a community center with an ice arena was denied, a group also
approached the City about donated land on which to build an ice arena,
and that was denied. He said tennis courts had been built in the City,
parks, basketball courts, etc., and all had been paid for with taxes.
He said only $1 per year would be necessary for fiscal disparities. He
said this would allow the City to control the site where this development
was taking place. He mentioned Don Fraser, Mayor of Minneapolis, tearing
down houses to build townhouses with tax increment financing dollars.
TIF will also be used in Apple Valley to build the Target. He urged the
Council to vote yes.
Next to speak was Jim Joinly who said he represented students of the
school system. He also questioned whether tax increment financing should
be used to build this project. Mr. Joinly asked several questions: 1)
what is the best /worst scenario for taxes that would be paid? 2) would
students playing hockey have an equal opportunity for ice time? 3) would
the ice arena go forward if tax increment financing was not approved?
Jack Johnson who lives on Flicker is a member of the Advisory Parks
Recreation Commission. He is a citizen and businessman in the City of
Eagan and has been a "hockey" parent. He understands the need but
Page 9 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
O('C88
questioned whether this was the way to obtain an ice arena. He also
asked whether the City needed another shopping center and said tax
increment financing dollars would give this development an unfair
advantage. He added there are many shopping centers currently with open
space and questioned whether other centers would come to the City and ask
for relief from their taxes? He urged the Council to vote no.
Ray Nutzman stated the City Council had no right to vote on this
issue. He said the issue should be put in front of the people through
a referendum like the community center. He asked if the project failed,
whether the taxpayers would have to pay?
Dennis Bartel is a 16 year resident. He said because of schools,
parks, and ballfields, his taxes have tripled in the last 16 years. Mr.
Bartel said the ice arena should have been built as part of the high
school and he questioned why hockey always had to suffer. He urged the
Council to vote yes, otherwise, he didn't think it would happen.
Mark Olson stated that he is for a hockey arena but not the use of
tax increment financing to pay for it. He asked the Council to do their
homework and vote no on TIF.
Terry Davis who lives on Safari said tax increment financing was
inappropriate for development of this type of property. Mr. Davis said
the only times TIF should be used are when inducements are needed to
attract a particular type of business to the City, when employment is low
and additional jobs are needed, when the development offers a high
potential for success, or when there is a critical need for the type of
development.
Jessica Hoven is not a hockey player but a figure skater. She said
the new high school has no arena and wondered how students could support
a school without one.
Ken Cody lives on Ticonderoga and said the Council couldn't
appreciate what 360 families go through trying to take their kids to an
ice sheet. He offered his schedule in support of his statement.
Arlene Krecklau said that TIF should be used. She said the Council
couldn't look at just one segment of this development. Ms. Krecklau also
added that other communities have used TIF and if Eagan didn't use tax
increment financing, it would just go back into a fund for others to use.
She said the money should be kept at home and spent on Eagan development.
Gerald Thurston said that the business of a building is to make
money. He asked why hockey parents didn't petition the City Council for
an arena or pool their money and build one.
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March 20, 1990
00089
Ken Walsted lives on Marble Lane said tax dollars were used to pay
for other sports. He brought an article with him citing the use of TIF
for the construction of the Midway Shopping Center. He said the City has
a chance for an ice arena for $1 a year versus a community center for
$20.
Tom Novitsky of Jefferson Lane is in favor of an ice arena but does
not agree with financing it with tax dollars. Because of the limited
space in the shopping center, he said it had limited potential for cross
utilization and was afraid another facility would be needed in the future
and have to be built across town. He said a city managed facility would
be the way to go to insure an equitable use of the facility.
Mr. Monroe lives on Strawberry Lane and moved to Eagan from Hawaii.
He drives his daughter to Apple Valley for figure skating and his son
elsewhere for hockey. He supported use of TIF for the arena and he
thought it met the "but for" test. He then made the following points:
it was a chance for Eagan to get an arena as he didn't think the citizens
would support a community center, the arena needs a private developer,
and fiscal disparities would mean a very minor loss to the City. He said
the City should take a chance and move ahead with the project. He added
that the TIF would benefit the City and its children and that the
competition between shopping centers would benefit the citizens.
Larry Schmidt of Reindeer Lane is a 15 year resident and mentioned
all the lawsuits being brought against the City by developers. He
wondered what the legal liability would be for the City if the developer
met the criteria for TIF and it was not approved.
Mark Johnson of Strawberry Lane cited Councilmember Gustafson's
question at an earlier meeting wondering how many people in Eagan would
like to see TIF used to build an ice arena. In response, Mr. Johnson and
several others circulated a petition and collected 2500 signatures, which
he pointed out were about the same number as those needed to elect each
of the Council. He told of approaching the City Administrator, Director
of Parks and Recreation and former Mayor with a request for two acres of
public land on which to build an arena. He reported that the request was
denied.
The City Administrator then spoke to this issue saying such a
request would have had to go to the entire Council and they would not
have made such a decision without doing so.
Mr. Johnson then asked why other cities could use TIF and not Eagan.
He granted that the project did involve a shopping center but the kids
need an arena. He said that memberships could be sold to help operating
expenses. He said if the developer wasn't permitted to put the entire
project together it could be another project such as the one developed
by M. G. Astleford where parcels were eventually sold to other developers
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March 20, 1990
0 (}09()
and the area became a hodgepodge of different projects. He said that if
the development got into trouble, the parents would help keep the arena
alive. He then discussed the present park system where he said the
pavillions and ballfields were poorly kept and many things were not used.
He said Parks and Recreation money could be put to better use than
another pavillion. He asked if all monies from the TIF would come from
Eagan, #196 or Dakota County. He suggested if the need to expand arose
that the land is right there. He asked the Council to look at the issue
openmindedly and to think of the children.
Mr. Dave Robecki is a 19 year Eagan resident. He stated that the
issue is not an ice arena but rather one of tax increment financing. He
asked where the hockey parents were when the high school was built? He
said the arena should have been built as a part of the school. He said
he spoke against all three instances of TIF in the City: the race track,
Unisys and Northwest. He then added that if we had gone for TIF in the
race track, today we would be Shakopee.
Lucy Monroe lives on Strawberry Lane. She would appreciate not
having to get up early to drive to Burnsville to use their ice arena; it
could be right here in Eagan.
Norb Rother asked if TIF was proper for this development. He asked
why now?
Mr. Richard Ericson asked: why Brad Swenson? why not another
developer? why can't the arena stand on its own?
Mr. James Shaffert of James Court had concerns about TIF. He asked
if the shopping center went broke, would bonding money have to be paid
back? He said small businesses were being hurt by competing shopping
centers on every corner and such competition had caused a good many small
businesses to go under. He asked what kind of leases are being signed.
He asked why another grocery store; Eagan already has Cub and Rainbow.
He also added that Eagan had a movie theater at one time and it went
broke. He didn't think tax increment financing was necessary. He said
banks and insurance companies had money and the City should let them
build the project. He said he voted for many on the Council because they
were against that sort of thing (TIF). Vote no.
Kevin Sanfors likes the area, parks, and sports and said that the
City needs an arena but TIF was not the way. He said he hadn't heard
anyone say that we needed another shopping center. He said to find
another way.
Mr. Dennis Bartel then returned to the podium to ask why the City
didn't have an ice arena. He asked if the project complied with the law
and was available at not a lot of cost to the taxpayers, why not (build
the arena)? He asked why #196 had not been involved with the project.
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Mayor Egan then closed the public portion of the hearing. Dr. John
Hanson of School District #196 was next to address the Council and began
by thanking Eagan's residents for supporting #196 building projects. He
said the school district's position has been that the ice arena and TIF
are City issues and not one the school district should interfere in. He
then briefly discussed several issues: Would they rent ice time? The
school district would be a strong candidate. They have reached an
agreement with Burnsville for next year's ice time. The ice rental in
#196 is $15,000 per season and since their ice time is for junior varsity
and varsity hockey, the actual ice time is not likely to change a great
deal. Hockey at the bantam, peewee, etc., level is usually sponsored by
local athletic associations, not the school district. The ice arena in
Apple Valley was built cooperatively with the City of Apple Valley and
the school district shares arena time with City sponsored activities.
Councilmember McCrea then asked why the school district had not come
to Eagan with a plan to build a facility similar to that at Apple Valley
High School?
Dr. Hanson replied that a bond referendum including a hockey arena
was attempted before but had failed. He also stated that experience
indicated that community center referendums with hockey arenas also
usually failed. The school district said that ice arenas are too
divisive an issue to include in their referendums. He thought perhaps
it could be a separate issue.
Councilmember Wachter then asked if there would be a school bond
referendum for additional schools this fall. Dr. Hanson replied that
numerous bond issues were coming up. The District projects the student
population in #196 to be 30,000 students by the year 2000. They are even
contemplating a fourth high school and year round school to meet the
needs of the district. He couldn't pinpoint the dates, but the District
would need additional referendums in the near future.
Councilmember Gustafson said the City had received two letters from
the school district on the ice arena. He stated that he had originally
been critical of the District's lack of involvement in the tax increment
financing of the arena, but said Dr. Hanson had answered that criticism
by stating the District did not want to interfere and comment on a City
issue. While the Councilmember understood the District's position, he
would have preferred that #196 was with the City on the issue.
The City Administrator then directed two of the public's questions
involving #196 to Dr. Hanson. While the question as to why the school
district had not been involved in the ice arena had been answered, the
City Administrator asked Dr. Hanson, who uses the Apple Valley arena?
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March 20, 1990
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Dr. Hanson explained that #196 shares the facility with the City and
that in addition to hockey, the arena is used for other activities such
as phy ed and tennis. The ice arena is used by the school from 2:30 p.m.
to 6:00 p.m. each day during the hockey season and evenings when games
are scheduled. The City of Apple Valley recently came to the District
with a request for additional time and the District gave up some of
theirs.
The City Administrator then asked several of the audience's
questions of fiscal consultant, Steve Rosholt of Faegre and Benson, and
bond counsel, Dave MacGillivray of Springsted, Inc. Why do we subsidize
a development when our schools are cutting their budgets? When the City
is going through budget cuts? Is tax increment financing a subsidy?
What amount would the City have to pay in fiscal disparities? What is
the "but for" test and does this project meet that test? Is tax
increment financing a tax increase? Will taxes go up?
Dave MacGillivray was the first to address these questions. He said
the best way to answer the tax questions was to explain the flow of tax
dollars. Property taxes go to various entities including the City, the
County, and the school districts. Tax dollars from this project will
continue to go to those jurisdictions plus their inflationary growth.
What will not go to them is the increase in property taxes that would
result from the increased value once the project is built. The
difference between what is paid now and what would be paid is the
"increment." Since this is a "pay as you go" arrangement, the new taxes
will go to the City, the City will subtract their costs, and then pay
what is left to the developer who will use it to pay land costs. If one
makes the assumption that this project would be built anyway, a case
could be made that the City could be using those tax dollars.
Fiscal disparities is a sharing of the commercial /industrial tax
base in the seven county metro area. A new development must contribute
40% of that industrial /commercial tax base back to cities in the fiscal
disparities pool based on the ratio of residential to commercial property
in their communities. In this instance, it appears that fiscal
disparities would have an insignificant impact on the taxpayers.
As far as the subsidy question, one would have to go back to the
"but for" test. Steve Rosholt stated that the "but for" test comes down
to statutory interpretation and would be a matter of judgment for the
Council. When asked what the legal liabilities of the City would be if
the City turned down this project, Mr. Rosholt replied there would be
none as the use of tax increment financing is a matter of city council
discretion.
Would the City bail out the arena if it failed to generate enough
income to meet operating expenses? This question was answered a year ago
when the taxpayers turned down the community center referendum citing the
cost of operating and maintaining the center as one of their reasons.
Page 14 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
00093
The development agreement specifically outlines that no tax monies will
be used for operating or maintaining the ice arena.
The next question was one of jobs. How many jobs will be directly
attributable to the project? Mr. Crawford estimated that based on other
arenas and retail centers, there would be 600 full and part -time jobs.
In the best /worst case scenario, what would the tax liability be to
citizens? The best case would involve minimizing the public and
maximizing private involvement to mitigate liability to the taxpayer.
While there would be no return to the taxpayers as a result of the
present method of financing, breaking even could be viewed as the best
case. Even in the worst case, i.e., the project failed, there would be
no obligation to the taxpayer. The downside risk is basically zero.
Will other shopping centers ask for tax reductions if their centers
are not full? The shopping center in this project will pay taxes just
as any other center. They will not be relieved of their tax obligations.
Why don't the people petition the City for an ice arena? A bond
referendum to build a community center with an ice arena was defeated.
Controversy seems to surround any proposal to build an ice arena with tax
dollars.
Can it be guaranteed that this facility will stay as an ice arena
and for how long? Steve Rosholt stated that a guarantee could be
negotiated as a part of the development agreement. The subject has come
up but, in its present form, the development agreement does not contain
this provision. The Community Development Director also added that a
change in the use of the facility would have to come back to the City
Council for review. Mr. Crawford said if a decision had to be made as
to the continuance of the arena, its (the arena's) governing board would
decide its future.
Councilmember Pawlenty asked if the 501C3 ownership was intended as
a method of avoiding state and federal income taxes? Mr. Crawford said
there were a number of reasons for the 501C3 status in that the arena was
not intended for profit and its nonprofit status would make more money
available for its operation and maintenance. The tax exemption was not
a determining factor. Councilmember Pawlenty then expressed concerns
about an entity owning the facility which will have no assets.
Do the funds from the tax increment financing come from Eagan alone
or from a broader base? The increment itself represents property taxes
received by all taxing districts.
Does bonding money have to be paid back if the arena goes broke?
The TIF in this case is "pay as you go;" no bonds will be sold.
Page 15 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
If the City does not use tax increment financing, what are our other
options? This is a difficult question to answer but other avenues will
be explored if it is turned down. The City would continue to face the
question of an ice arena.
The Mayor then turned to the Council for their questions and
discussion.
Councilmember Wachter wished to address some of the issues raised
earlier. He stated that we had heard why #196 had not included the arena
in the school bond issue. He also pointed out that the City built many
of the parks, trailways and pavillions because the voters had expressed
a desire for them through their approval of a referendum for those
amenities. He stated that bond issues and referendums were for schools
and other important things for the community. Even though tax increment
financing was approved for the race track, he personally did not vote for
it. Councilmember Wachter still thinks the TIF would be preferential
treatment for the developer and its use is a policy issue for Eagan.
The Mayor then asked Mr. MacGillivray to answer three feasibility
questions: 1) construction financing, 2) covering operating deficits,
and 3) insurance. Mr. MacGillivray said that the developer is assuming
maximum funds available through tax increment financing but, in his
opinion, it is difficult to project the increment available to support
the arena. Even though the applicant has given improvement on the
construction schedules, all development would have to be in place by
January 2, 1991, for full value on the increment. Other funding will
have to be specified and "in place" defined.
The Mayor asked if the arena couldn't fund operating costs, would
the developer approach the City for assistance. Would they use the
operating reserve for operation costs? Mr. MacGillivray said the
developer would probably reserve the right for the lender to use gross
revenues. The developer states the arena would generate operating
reserves, however, the City would want an up- front, cash reserve to draw
on to cover operating deficits. The Mayor reported that there are
$100,000 in operating deficits annually at the Burnsville arena. How
could $30,000 $40,000 cover? Mr. MacGillivray said the City would want
to require a performance bond and /or cash deposit.
The Mayor then questioned insurance and reconstruction. The
developer would have to commit to rebuilding subject to the agreement of
the lender.
Councilmember Pawlenty then questioned if one sheet of ice with
seating for 1,000 1,200 generates $250,000 in revenues and $313,000 in
operating expenses, how would $70,000 in operating deficits be funded?
If reserve funds are used up with no hope of replenishing, is there a
redraw? Mr. MacGillivray said this was an area of concern that they are
trying to work out in the development agreement with an up -front cash
deposit.
Page 16 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
00095
The Councilmember then questioned the 501C3 ownership. If one of the
reasons to use the 501C3 is to exempt the arena from income taxes and
there is likely no income to tax, it appears one of the rationale to use
evaporates. Are there any other reasons for 501C3 ownership? Mr.
Rosholt sees no advantage in the 501C3 if there is no assistance on
taxes. Also, if they move away from the 501C3 ownership and the
operating entity is not the developer, it should be someone financially
responsible with some community involvement to provide additional
funding.
Councilmember Gustafson addressed the Council. He had received
numerous phone calls the previous evening regarding the ice arena. He
discussed the various possibilities but there did not seem to be one
ideal solution for providing an arena. He stated he was not interested
in using tax increment financing for a "half- baked" arena. With no
development agreement to vote on, the options open to the Council were
to vote the proposal down or to vote a continuance.
Councilmember McCrea then spoke to broadening the scope of the issue
by proposing a "win /win" situation. Next to Brad Swenson's proposed
development are 66 acres of City parkland acquired from the Department
of Housing and Urban Development. She suggested the City donate land at
no cost to the YMCA. Perhaps some type of land swap between the City and
the developer could be worked out. Former Mayor Ellison is presently
heading up a million dollar campaign to raise the funds to build a Y in
Eagan. The Councilmember had called the Executive Director of the YMCA
and they would consider expediting a YMCA with ice on a donated site.
If the City donated 15 acres of the adjoining parkland and a YMCA was
built, a joint advisory board could also operate the ice arena. This
proposal would lessen the City's liability. In order to get the ice
arena as soon as possible, she suggested the City go ahead with the TIF
for the ice arena and then the YMCA would get underway after that
approval was in place. She reported that the Executive Director of the
Y is extremely interested.
The Mayor then asked about the costs of infrastructure to the site.
The Director of Public Works said the City has major services on site but
any additional costs would depend upon extension of those services.
The Mayor then asked Mark Johnson about fund raising on behalf of
the Y. Mr. Johnson said when they originally discussed funding an ice
arena, they had approached Coca Cola and other businesses in Eagan about
donations. A lender told them at that time that if they could raise half
the money needed, the bank would loan the remainder. Councilmember
Pawlenty asked Mr. Johnson if the City donated the land, how long before
a facility could be in use? Mr. Johnson said two years.
Page 17 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
0 0 0 96
Mayor Egan stated that if the City were to consider this latest
proposal, it should be considered separately and not tied to the present
development. Councilmember Wachter agreed that they could not be tied
together.
Councilmember Pawlenty asked if the land price had been finalized.
The City Administrator stated that the appraisal had been delivered to
the Finance Department today. The total for the four parcels is
$2,770,830; the total excluding the ice arena is $2,406,675.
Mr. Rollie Crawford first addressed the status of the development
agreement and was confident an agreement could be reached. He said the
approach brought up by Councilmember McCrea was new and perhaps could be
integrated into their proposal. He mentioned the letter before the
Council requesting a continuance of two weeks and said that may be
optimistic; however, respectfully requested the continuance.
The Mayor appreciated the request and mentioned his personal concern
that 4 of the 6 meetings in 1990 had the Tri -Land proposal on their
agendas. Mr. Crawford concurred but said the people wanted a correct
decision and the new information could change the approach.
Councilmember Gustafson moved, Pawlenty seconded, a motion to
continue for 30 days.
Councilmember Pawlenty remarked that if questions regarding this
development were not satisfactorily resolved, each issue would be a deal
breaker. The developer should not take a continuance as necessarily
favorable.
Mr. Crawford said the developer would need more specifics with
regard to the YMCA proposal; however, it certainly has merit. He wishes
they could have worked with it sooner. The developer has no burning
desire to own an arena and he hoped to find an alternative that would
make the City and the developer happy.
Councilmember Wachter asked in what way was the YMCA interested in
an ice arena. Councilmember McCrea replied not in financing bricks and
mortar but in land on which to build a Y. Councilmember Wachter asked
why the hockey association and the YMCA didn't work together on some type
of arrangement. Aye: 5 Nay: 0
OLD BUSINESS
EXTENSION /PRELIMINARY PLAT
COUNTRY HOLLOW 2ND ADDITION
The Director of Community Development said staff had gone back and
attempted to reconstruct the events surrounding the original request for
continuance. While the minutes are vague, it appears the plat approvals
Page 18 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
were extended to November 30, 1989. In addition, the fees were
inadvertently collected in 1989 at 1988 rates. He, therefore, requested
that all fees be collected at the 1990 rates.
Gustafson moved, Wachter seconded, a motion to approve an extension
of the preliminary plat for the County Hollow 2nd Addition and that all
fees collected in 1989 be at the 1989 rate and all fees collected in 1990
be at the 1990 rate. Aye: 5 Nay: 0
ON -SALE LIQUOR LICENSE /XAVIER'8 INC.'
00097
Concerns were expressed regarding the financial report submitted by
Xavier's, Inc. No Police Department recommendation was included with
this Council item as part of the corporation with close ties to Xaviers
is in a foreign country and could not be investigated. City ordinance
does not permit issuing a liquor license to anyone who is not a citizen
of this country.
Mr. Richard Gabriel, representing the restaurant owners, stated that
the owners of the restaurant are the individuals requesting the liquor
license. Mr. Gabriel also went on to add: Both are citizens of the
United States. It is only the parent corporation, Food and Beverage,
Inc., that is located in a foreign country. Two resident, non nationals
have invested money in Xavier's but are not included in the operations
of the restaurant. Federal Land Company holds the lease for the
restaurant and will not list Xavier's, Inc., as the leaseholder until
they obtain a liquor license. At present, Food and Beverage, Inc., is
carried on the lease.
The City Attorney pointed out that the City received two financial
statements from Xavier's, one dated March 6 and one March 15. The City
Attorney said that the statements contain conflicting information and are
incomplete and inaccurate.
Mr. Gabriel then again tried to explain the relationship of the two
corporations. He added that Xavier's is struggling and needs the on -sale
license.
The Mayor told Mr. Gabriel that because accurate financial
information could not be obtained, no recommendation from the Police
Department had accompanied the application. The Council would be
hesitant to act favorably without this recommendation. The Police
investigation is on- going.
Ms. Carmen Cannesa said she had thought the Police report was
completed. Councilmember McCrea told her that the financial report was
a part of the Police Department investigation.
Page 19 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
CONDITIONAL USE PERMIT /XAVIERS, INC
Wachter moved, Egan seconded, a motion to deny a liquor license for
Xavier's, Inc. at 1260 Town Centre Drive, Town Centre Shoppes.
Councilmember Gustafson said he understood the City's questions
about the financial statements but was unsure of corporate ties. The
City Attorney said that based on information supplied by the applicant,
it appeared there are strong ties between Food and Beverages, Inc., and
Xavier's. The Mayor asked if this was sufficient to deny the
application. The City Attorney said there were a myriad of reasons to
deny in light of the fact there seems to be two sets of numbers.
Mr. Gabriel said the original statement of March 6 was preliminary
and that adjustments were made in the March 15 statement to reflect
requests made by the City.
Aye: 4 Nay: 1 (Gustafson) Councilmember McCrea wished to point
out that she voted for denial based on her original desire to reserve
this license for a larger, perhaps hotel, restaurant.
Wachter moved, Egan seconded, a motion to deny a conditional use
permit for Xavier's Restaurant to allow on -sale liquor in a CSC District,
1260 Town Centre Drive /Town Centre Shoppes. Aye: 4 Nay: 1
(Gustafson)
FINAL PLAT EXTENSION /EAGAN EVANGELICAL CHURCH
McCrea moved, Pawlenty seconded, a motion to approve an extension
of the final plat until April 30, 1990, for Eagan Evangelical Covenant
Church. Aye: 5 Nay: 0
APPOINTMENTS /CORRIDOR BLUE RIBBON PANEL
After discussing the agressive schedule anticipated for the Eagan/
Mendota Heights Corridor Blue Ribbon Task Force, it was decided that at
least one councilmember should be appointed as one of two representatives
on this panel. Councilmember Gustafson, while concerned about the time
commitment, agreed to accept appointment. Jon Hohenstein was recommended
as the other representative. Mayor Egan and Councilmember Pawlenty
agreed to serve as alternates.
Egan moved, Wachter seconded, a motion to appoint Councilmember
Gustafson and staff member Hohenstein, to the Eagan Mendota Heights
Corridor Blue /Ribbon Task Force, with Mayor Egan and Councilmember
Pawlenty serving as alternate members. Aye: 5 Nay: 0
SIMILAR USE DETERMINATION /TEEN CLUB
BLACKHAWR PLAZA
The City Administrator introduced this item by reporting on a
meeting held yesterday between the Police and the Community Development
Page 20 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
Q1C99
Departments. The Chief of Police had concerns about this proposal and
recommended that it be continued to allow for further study. The
Director of Community Development then outlined the request before the
Council as 1) a determination as to whether this is a similar use within
a neighborhood district and, if not, 2) a determination as to where it
would best be located.
The proposal is for a 10,000 s.f. center with operating hours from
3:30 p.m. to 1:00 a.m. The club would have 400 seats, a dance floor,
and video games. Parking spaces required for this facility would be 135
stalls and approximately 177 spaces are available. Staff concerns
include traffic control, the number of teens and young adults using the
facility, the curfew and hours of operation, and the large scale of the
project.
Mr. L. Swanson of TC Teens, Inc., then elaborated on the proposal
before the Council. He said the club is a multifaceted, entertainment
center. Their hours of operation would adhere to all curfews. There
would not be more than 300 -400 persons on site at any one point. The
center would draw from other suburbs but is designed to work within the
City. The center will provide educational assistance after school and
would involve parents and teachers. They would also operate a job
placement service. Since the club would have 501C status, a portion of
the profits would go into a scholarship fund.
Adjoining the club would be a pizza take -out operation which would
also serve the club. The club would be non alcoholic and non smoking.
Mr. Swanson listed the requirements for admission including the fee,
identification, breathalizer tests, etc. Individuals would not be
allowed to loiter or mingle outside. He stated that the City of Fridley
was pleased with their operation. Many inner City kids come out to the
centers. There have been six minor incidents at the Fridley facility in
their nine months of operation. The Center's security handled all
incidents. The center employs security for both inside and outside of
the facility.
The Mayor asked why they had chosen this particular center. Mr.
Swanson stated that one of the principals of the corporation is Mr. Steve
Ramsey, who owns Blackhawk Plaza. They had not anticipated the need for
a special use permit to utilize the facility and had already begun some
minor remodeling. Councilmember Gustafson asked about the square footage
at the Fridley center. He was told it is 4,800 s.f. expansion. With
weekends being the busiest nights, 400 -500 visit at those times. The
closest facility similar to the one planned for Blackhawk Plaza is the
Back to the Goldrush in Cottage Grove which is attended by 900 -1,200
individuals on a weekend evening. Councilmember Gustafson expressed
concerns about parking for such large numbers. Mr. Swanson said they
anticipate 100 -150 cars in an evening.
Page 21 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
SPECIAL USE PERMIT /PRAISE FELLOWSHIP CHURCH
CONDITIONAL USE PERMIT /FEDERAL LAND COMPANY
OUTSIDE STORAGE
00100
Ms. Sharon Hanson presented a petition against locating the teen
club at Blackhawk Plaza. She stated she was not opposed to a teen club
but did not agree that an NB district such as Blackhawk Plaza was the
place for one. She defined an NB district as small business areas to
serve daily needs of adjoining residents. She said the center did not
fit the definition. The adjoining neighborhoods are made up of 25 -year
residents and new homeowners. 99% of the adjoining neighborhood would
not use the center at all, let alone on a daily basis. She appreciated
the center being drug, smoke and alcohol free, but wondered who would
patrol the area once the teens were off the Blackhawk Plaza property.
Pawlenty moved, McCrea seconded a motion to deny a similar use
finding for the teen club use in a neighborhood business district.
Aye: 4 Nay: 0 (Gustafson abstain)
It was recommended that TC's Teen Club work with staff to find a
more suitable location.
Gustafson moved, McCrea seconded, a motion to approve a special use
permit for Praise Fellowship church to allow the church to locate
temporarily at 3103A Sibley Memorial Highway. The special permit will
expire on March 20, 1992. Aye: 5 Nay: 0
The City Administrator prefaced this item by saying the Advisory
Planning Commission had recommended denial of this conditional use permit
on the basis that the applicant was in violation of City ordinance. The
applicant stated they had tried to control the parking and admitted that
at times the number of cars parked at the Agency Rent A Car site was 20-
30 cars rather than the allowable 8 -10.
Councilmember Gustafson said that the applicant should be cited if
in violation but it should not be a deciding factor in considering their
application for conditional use permit. The applicant said the rental
site was beneficial if the numbers could be controlled. Councilmember
Pawlenty asked if the conditional use could carry a sunset provision.
The City Attorney said the Council could tie the approval to an event but
it would be difficult to set a time limit.
Gustafson moved, Wachter seconded, a motion to approve a conditional
use permit for the outside storage of up to 10 cars in the Yankee Square
Center for Agency Rent A Car. Approval is subject to the following
conditions:
Page 22 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
00101
1. That the cars will not carry for sale signs nor be available for
sale at this site.
2. That signage shall be provided delineating the rental car
parking from the shopping center parking.
3. That the permit shall be subject to all applicable ordinances.
Aye: 4 Nay: 1
PRELIMINARY PLAT
GOPHER EAGAN INDUSTRIAL PARK 3RD ADDITION
Councilmember Gustafson asked about the variance request for less
parking stalls than would ordinarily be required of this site. He asked
as to the hardship. Director of Community Development Runkle stated that
the additional spaces were not needed as the site only supports 30
employees. The applicant will be required to supply proof of parking.
Gustafson moved, Wachter seconded, a motion to approve a preliminary
plat entitled Gopher Eagan Industrial Park 3rd Addition subject to the
following:
These standard conditions of plat approval as adopted by Council
action on September 15, 1987, shall be complied with: Al, B1, B2, B3,
B4, Cl, C2, C4, C5, D1, El, F1, and G1.
1. The required conservation easement for the north property line
shall be properly conveyed and recorded simultaneously with the final
plat.
2. A variance of 42 parking stalls shall be approved with the plat
subject to proof of parking if needed for future use.
3. No outside storage shall be allowed.
4. No outdoor speakers shall be allowed.
5. The development is required to provide a 5 cfs storm sewer
outlet to the storm sewer system in Kutoff Court.
6. The development is required to submit detailed plans and
specifications for the construction of the proposed retaining wall for
staff review and comment.
7. The development is required to limit nutrient loadings to Burr
Oak Pond to predevelopment levels. Aye:
Page 23 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
ADMINISTRATIVE AGENDA
MPCA ADVISORY COMMITTEE
Wachter moved, Gustafson seconded, a motion to appoint Phyllis
Riesland as a regular member of the MPCA Advisory Committee subject to
her acceptance. Aye: 5 Nay: 0
CLERICAL SETTLEMENT
McCrea moved, Gustafson seconded, a motion to approve ratification
of the clerical bargaining unit settlement for 1990, 1991, 1992.
Aye: 5 Nay: 0
GROSS REVENUE AUDIT OF CABLE TV NORTH CENTRAL
Wachter moved, McCrea seconded, a motion to authorize the Chair of
the Burnsville /Eagan Cable Commission to execute a contract on behalf of
the cities of Burnsville and Eagan for the purposes of conducting an
audit of Cable TV North Central. Aye: 5 Nay: 0
ACQUISITION OF MCCARTHY PROPERTY
Pawlenty moved, McCrea seconded, a motion to approve the acquisition
of the Lillian McCarthy property as directed in negotiations in 1988, and
the Mayor and City Clerk be authorizedto to execute all related
documents. Aye: 5 Nay: 0
LEASE AGREEMENT /OPERATION OF COMPOST SITE
CITY OF EAGAN /DAKOTA COUNTY
McCrea moved, Pawlenty seconded, a motion to approve the lease
agreement between the City of Eagan and Dakota County with respect to
operation of the compost site. Aye: 5 Nay: 0
PROCLAMATION /HEALTH FAIR 11
Egan moved, McCrea seconded, a motion to approve a resolution
entitled, Health Fair 11, proclaiming March 31 April 14, 1990, as the
dates for a Health Fair 11 site in the City of Eagan. Aye: 5 Nay: 0
PROCLAMATION /FAIR HOUSING MONTH
00102
R -90.15
Egan moved, Wachter seconded, a motion to approve a resolution
entitled, Fair Housing Month, proclaiming the month of April 1990 as Fair
Housing Month in the City of Eagan. Aye: 5 Nay: 0
R -90.16
Page 24 /EAGAN CITY COUNCIL MINUTES
March 20, 1990
McCrea moved,
entitled, American
American Home Week
PROCLAMATION /AMERICAN HOME WEEK
Pawlenty seconded, a motion to approve
Home Week, proclaiming April 29 May
in the City of Eagan. Aye: 5 Nay: 0
VISITORS TO BE HEARD
00103
a resolution
5, 1990, as
R -90.17
Mr. Gordon Byers of 4825 Eriks Boulevard, approached the Council
requesting a 1' variance to the sideyard setback requirements in order
to extend his home 1'. Mr. Byers had obtained his neighbor's approval
but was unaware he needed to go through the variance application process.
Wachter moved, Gustafson seconded, a motion to continue the variance
to the April 3, 1990, regular City Council meeting contingent upon the
applicant going through the variance process. Aye: 5 Nay: 0
RAHN ROAD PROJECT /PROJECT 584
After discussing the results of the neighborhood meeting, it was
determined that all facets of the original approval would remain in
effect with the exception of the materials used to complete the trailway
on the east side of Rahn Road. Bids will be obtained for both bituminous
and concrete surfacing of the trailway and the affected property owners
notified of the change in assessments to allow them to determine which
material they wished installed.
WILDERNESS PONDS PETITION /PROJECT 86 -RR
The Director of Public Works reported that a petition had been
received from the developer of the Wilderness Ponds subdivision
requesting a feasibility report for the installation of storm sewer.
City staff reports that the existing system was designed and installed
privately and is inadequate for the development. Because any redesign
and upgrade of this utility under a public improvement project could
result in assessments to adjacent property owners, it should be the
responsibility of the developer. An alternative would be to have the
developer declared in default of the development agreement.
McCrea moved, Wachter seconded, a motion to declare the developer
of the Wilderness Ponds Addition in default of the development agreement.
Aye: 5 Nay: 0
CHECKLIST
Wachter moved, Egan seconded, a motion to approve the checklist
dated February 28, 1990, in the amount of $556,069.21 and the checklist
dated March 20, 1990, in the amount of $661,571.33. Aye: 5 Nay: 0
Page 25 /EAGAN CITY COUNCIL MINUTES
March 6, 1990
00104
ADJOURNMENT
The City Council meeting was adjourned at 2:10 a.m. on March 21,
1990.
KF
C TY OF EAGAN
E. J anOverbe e, City Clerk