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05/01/1990 - City Council RegularMINUTES OF A REGULAR MEETING OF THE EAGAN CITY COUNCIL EAGAN, MINNESOTA MAY 1, 1990 A regular meeting of the Eagan City Council was held on Tuesday, May 1, 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, Director of Public Works Tom Colbert, and City Attorney James Sheldon. Aye: 5 Nay: 0 McCrea moved, Wachter seconded, a motion to approve the agenda for the May 1, 1990, regular City Council meeting. Aye: 5 Nay: 0 Wachter moved, Gustafson seconded, a motion to approve the minutes for the April 17, 1990, regular City Council meeting with the following exception: Director of Public Works Colbert requested a correction to page 11, paragraph 4: the motion should be corrected to include, after the word, 'program,' 'for lawn sprinkling.' The Councilmembers were in agreement with the clarification. After brief discussion, the motion on Page 8 regarding the formation of a Community Action Committee, was allowed to stand as written. Gustafson moved, Wachter seconded, a motion to approve the minutes for the April 24, 1990, special City Council meeting. Aye: 5 Nay: 0 00145 There were no Department Head Business items; however, the City Administrator gave a brief update on the Omnibus Tax Bill that is before the Legislature. He said that the Pay 1990 aid cut to Eagan is equal to 1.53% of the City's Pay 1990 revenue base, or $148,793. Many cities will receive these cuts through their Local Government Aid; however, because Eagan has already lost all LGA, the 1.53% will come out of Homestead and Agricultural Credit Aid (HACA) payments. The City Administrator said that because the cuts come in the middle of the budget year, the City will have to decide how it will do without this revenue. He added that the aid cuts will have an impact beyond 1990. He said that cities subject to levy limits cannot increase their levies in Pay 1991 to make up for the 1.53% aid cuts. The tax bill reduces (by the dollar amount of the aid cut) the Pay 1991 levy limit bases thereby forcing the City to begin 1991 with Tess. Liz Witt, Administrative Assistant in the Finance Department as well as the Chair of the League of Minnesota Cities Resource Committee, said she is part of a Task Force formed by the LMC. The Legislature is looking at reserve funds and the Task Force will study alternatives. The City Administrator then suggested that a budget reduction strategy be developed at a workshop session with amendment to the 1990 budget at the first meeting in June. He also welcomed the Council's suggestions as to what Staff should look at. Page 2/EAGAN CITY COUNCIL MINUTES MAY 1, 1990 00146 The Mayor said he had briefly discussed the issue with Vern Peterson of the Association of Metropolitan Municipalities while attending a Nominating Committee meeting last week and this Legislature is very negative toward municipalities. He added that the cuts will require adjustments to the budget in 1990 and belt tightening in 1991. Councilmember Gustafson said it may sound like 'sour grapes,' but the City adopted a balanced budget, the Legislature came up short and then took the money from the City—money the City had budgeted. He said citizens should take a look at their Legislature. The City Administrator said he appreciated the comments. He said that Staff is preparing a fact sheet to outline the situation for employees and constituents. He said the fact sheet would go out to all residents. Councilmember Pawlenty questioned whether the lobbyist hired by the League had been effective. City Administrator Hedges said lobbyists don't always accomplish their goals in the first year but build for the future. He said one of the issues being strongly supported by our lobbyist is the flat tax. He said it was important to insure equitability in taxes as in 2-3 years, it is likely 100% of the City's financing will come from property taxes. Councilmember Pawlenty said that nothing will change until redistricting takes place. He said that the flat tax rate is a good idea but won't take place for 3-4 years. He added that next year, when the State again faces fiscal problems, all property taxes, as compared to this year, will sky rocket because state property tax relief will be reduced. A. Personnel Items mNseu AG A 1. It was recommended that Patricia Gutzmann and Mike Pike be hired as temporary Civil Engineering Interns for the City of Eagan. 2. It was recommended that Jill Gruenke be hired as a Seasonal Summer Recreation Program Assistant. 3. It was recommended that the following be hired as seasonal park workers: Seasonal Parks Maintenance Roy Newland Christopher Darwitz David Smith Michael Marxer Mike Finnegan Tyrone Johnson Joel Kivi Councilmember McCrea questioned why there were no females on the above list of seasonal park workers and, further, made reference to the City's recruitment of females and minorities. The City Administrator stated that the City has been very proactive in such recruiting and would provide a report of those efforts. B. Plumbers Licenses Ballfield Attendants Richard Marhula Timothy Gill Dean Downs It was recommended that the following five (5) plumbers licenses be approved: 1) Bruce Plumbing, 2) Domestic Mechanical, 3) Northbridge Plumbing, 4) Palma Plumbing, and 5) Plumber Ted. Page 3/EAGAN CITY COUNCIL MINUTES MAY 1, 1990 C. Final Plat, Lexington Pointe 6th Addition 00147 It was also recommended that two (2) water softner licenses to be issued to Bruce Plumbing and Metro South Water Conditioning. It was recommended that the final plat for Lexington Pointe 6th Addition be approved as presented. R -90 29 D. Contract 90-06, Receive Bids /Award Contract (Cray, Coventry Pass 2nd Effress Additions -Storm Sewer) It was recommended the bids for Contract 90-06 (Cray, Coventry Pass 2nd Effress Additions -Storm Sewer), be approved and the contract awarded to the lowest responsible bidder and the Mayor and City Clerk authorized to execute all related documents. E. Contract 89 -13, Approve Plans /Authorize Ad for Bids (Cliff Road Water Treatment Plant) It was recommended the plans for Contract 89-13 (Cliff Road Water Treatment Facility) be approved and advertisement for a bid opening authorized to be held at 10:00 a.m., Wednesday, June 13, 1990. F. Project 589, Receive Feasibility Report/Order Public Hearing (Elrene Kost Road Utilities and Streets) It was recommended the feasibility report for Project 589 (Elrene and Kost Road Utilities and Streets) be received and a public hearing scheduled to be held on June 5, 1990. G. Vehicle #145, Receive Bids /Authorize Purchase (Public Works Front End Loader) It was recommended the bids for Vehicle #145 (Public Works Front End Loader) be received and the purchase from the lowest responsible bidder be authorized. H. Contract 90 -04, Approve Plans /Authorize Ad for Bids (Rahn Road Reconstruction Streets and Utilities) It was recommended the plans for Contract 90-04 (Rahn Road Reconstruction-Streets and Utilities) be approved and the advertisement for bid opening be authorized to be held at 10:30 a.m., June 1, 1990. I. Contract 88 -K, Final Acceptance (Manor Lake Streets and Utilities) It was recommended the completion of Contract 88 -K (Manor Lake-Streets Utilities) be acknowledged and perpetual maintenance authorized by the City. J. Contract 89 -16, Approve Change Order #1 (Stems Addition Streets Utilities) It was recommended that Change Order #1 to Contract 89-16 (Stems Addition, etal Streets Utilities) be approved and the Mayor and City Clerk authorized to execute all related documents. Councilmember Wachter objected to the change order and said the developer should bear the burden of the additional costs and not the contractor. The Director of Public Works stated that the costs associated with the change order will be properly prorated and charged back to the respective developments and added to their final assessment obligations. Page 4 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 K. Agreement Between the County of Dakota, The City of Eagan. and Dakota Electric Association for Cost Sharing of Aerial Photography and Stereo Digitizing It was recommended that the agreement be approved between Dakota County, the City of Eagan and Dakota Electric Association for Cost Sharing of Aerial Photography and Stereo Digitizing and to authorize staff to propose to Dakota Electric Association that a portion of future power rebates to the City of Eagan be used to finance Eagan's share of costs for Section 10 18. Gustafson moved, Pawlenty seconded, a motion to approve the Consent Agenda Aye: 5 Nay: 0 (Exception taken to Item J by Wachter). PUBUCHEARINGS CROSSROADS OF EAGAN/RESOLUTION TO ISSUE MULTIFAMILY HOUSING REVENUE REFUNDING BONDS 00148 The City Administrator introduced the item saying that the public hearing was technical in nature. He said that Crossroads Partnership had requested that the first series of housing development revenue notes be paid off on the Crossroad of Eagan project and that the bonds be reissued. He also stated that a financing agreement was being proposed allowing the City to loan the proceeds of the bonds to the company in order to redeem in advance of maturity the prior note at a redemption price equal to the outstanding principal balance plus accrued interest to the date of redemption. He said the procedure was not new but was one that the City had used before. All payments under the FHA insured mortgage loan will be made by the Partnership. Councilmember Wachter asked what the old rate was and what the new interest rate will be. Mr. Dan Gustafson of Crossroads Partnership said the old rate was 11% and the new FHA will be a combined rate of approximately 8 Councilmember Pawlenty asked specifically what upgrades would be made to the property. City Planner Jim Sturm said that they would be similar to the Forest Ridge project with installation of an irrigation system and additional landscaping to be worked out with staff. Wachter moved, Gustafson seconded, a motion to approve a resolution authorizing the issuance of multifamily revenue refunding bonds relating to an existing multifamily housing development (Crossroads of Eagan) series 1990A and taxable multifamily housing revenue refunding bonds for the Crossroads of Eagan project FHA insured mortgage loan Series 19908 and that this approval in addition to all other conditions be subject to the following: 1. 1/8 of 1% City administration fees to offset any and all City administration costs for the life of the bonds. 2. Upgrade of the property with certain improvements to include landscaping, irrigation and general building inspection requirements. Aye: 5 Nay: 0 PROJECT 542/FINAL ASSESSMENT HEARING ALDEN PONDS- STREETS UTLRIES R 90.30 After noting no formal objection, either written or in person, Gustafson moved, McCrea seconded, a motion to close the public hearing and approve the final assessment roll for Project 542, Alden Ponds Streets and Utilities, and authorize its certification to the County. Aye: 5 Nay: 0 Page 5 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 PROJECT 452R/FINAL ASSESSMENT HEARING POND AP -50, TRUNK STORM SEWER After noting no formal objection, either written or in person, Pawlenty moved, Gustafson seconded, a motion to close the public hearing and approve the final assessment roll for Project 452R, Pond AP -50 Trunk Storm Sewer, and authorize its certification to the County. Aye: 5 Nay: 0 PROJECT 473/FINAL ASSESSMENT HEARING MISCELLANEOUS OBJECI1ONS -PILOT KNOB TRUNK STORM SEWER After a brief introduction by the City Administrator, Director of Public Works Colbert stated that all objections to the assessments being addressed are a result of a public hearing held for this project on September 19, 1988. He said written objections were submitted at that time and those properties were removed from the assessment roll. Mr. Colbert said at the direction of the City Council, staff had requested that appraisals be done on each property to substantiate the increase in value of the property associated with the improvement. He stated that in each instance, the assessments had been substantiated. Mr. Colbert said that written objections have been received from Tom Rooney, #10- 02200- 012 -86, and Anthony Caponi, #10- 02200- 010 -80 and #10- 02200- 010 -80, and Theresa Fritz 10- 02200- 014 -54. The Director of Public Works said the majority of objections had to do with the rough topography. He stated that Mr. Hosford, who originally had filed an objection, had subdivided his property and the assessments have been paid. He added that each objection should be addressed separately. The Mayor then asked the City Attorney what the procedure would be for dealing with the objections. tie asked if the City relied on the appraisal, what purpose would be served by the public hearing. The City Attorney stated that the City had a responsibility and an obligation to hold the public hearing. If the Council was in agreement with the final assessments, he said the assessments would then be certified to the County for collection with the property taxes. The City Attorney said the property owners could then determine whether they wished to pay the assessments or take the issue to district court. He said it would then be up to the court to decide if the homeowners had been assessed fairly. Mike Kohler was the first to ask the Council for reconsideration of the assessments for his property. Mr. Kohler said because of the natural drainage of his property, there was no improvement due to the trunk storm sewer. He said if his property drained into the storm sewer system, he could see some benefit. However, he said 80% of his property drained into a very swampy area at the back of his land and not into the City system. The Mayor asked the Public Works Director if some of the homeowners would have to join together to develop their property. Mr. Colbert said potential development on individual properties would be limited but they could subdivide without joining together as evidenced by the Hosford Addition. The next homeowner to address the Council was Theresa Fritz. Ms. Fritz said the Hosfords had talked to them when the Hosfords developed their property; however, Mr. Ms. Fritz were not prepared to join them at that time. Ms. Fritz said the assessment would be fair at the time of subdivision but not now. She also said the appraisal had a way of becoming a self fulfilling prophesy in that the appraisal was now reflected on the tax rolls. She added that if the assessments are pending against their property, the purchase price would have to be adjusted. She said the assessments should be paid if and when the property is subdivided. Councilmember Gustafson said it was likely the properties would have more run -off when they were subdivided with driveways, roofs, etc. However, as it stands now, he said it was likely there was little run -off. He said he understood the need to pay for the storm sewer system but questioned the 'benefit' to the property. City Attorney Page 6 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 0010 Sheldon pointed out that those properties on high ground always maintain that storm sewers provide no benefit; however, the same amount of rain falls on high as well as low -lying property. Councilmember Gustafson said perhaps the word should be 'responsibility' rather than 'benefit.' The Director of Public Works said the storm sewer system provides the opportunity to subdivide because the system is available to the property. He said that while it was limited now, the opportunity was provided and, hence, the benefit. Councilmember Gustafson questioned why the property could not be assessed when subdivision and development occurred. Mr. Colbert said that approximately 1/3 of the assessments for these properties are proposed to be levied now when the system is installed and the remaining 2/3 when development occurs. He said that when improvements are installed within a district, the affected properties should participate but provisions are made for postponement of part of the assessments for large unplatted property that is presently homesteaded and less than 5 acres. Ms. Fritz objected to a statement that development cannot occur until improvements are installed. She said that Hilltop Homes was developed before the storm sewer was put in Mr. Colbert pointed out that Hilltop had to prepay the assessments for the system. He said it is not feasible to put in all improvements before any development occurs. Mr. Kohler asked if it would be possible to be assessed for just that portion of his property that derives benefit from the system. The Director of Public Works said that the City assesses storm sewer by district. He said it has been an informal policy to delay assessment until which time as a majority of the property falls within a particular storm sewer district. Mr. Kohler asked if his property would be assessed only once. Mr. Colbert said there would be no future assessment unless the property was subdivided. Mr. Kohler then said that 15% of his property drains directly into the storm sewer system but the back portion of his property does not. He said since 2/3 of his property would never be developed, he should be assessed for 1/3 only. The Mayor said that these were difficult questions; however, the City Council has only to establish whether the appraisal indicates that the property benefitted from the improvements at least as much as the assessment. Councilmember Gustafson stated that it was becoming increasingly difficult to own more than 12,000 s.f. of property in Eagan. He said that parcels are being hit and that the uniform policy hits some acreages hard. He said that property owners can enjoy larger acreages but assessments and taxes are also high. Gustafson moved, McCrea seconded, a motion to close the public hearing and approve the final assessments for these properties: #10-02200 012 -86, #10-02200-010 -80, #10-02200-010 -84, #10-02200-014 -54, #10-02200-016- 54, and #10 -02200-011 -85 (Project 473, Pilot Knob Road Trunk Storm Sewer) and authorize their certification to the County. Aye: 5 Nay: 0 PROJECT 494/FINAL ASSESSMENT HEARING MISCELLANEOUS OBJECTIONS/WESCOTT ROAD STREETS UTILITIES Director of Public Works Colbert stated that the objections to the assessments being addressed were a result of a public hearing held for this project on September 19, 1988. He said written objections were submitted at that time and those properties were removed from the assessment roll. Mr. Colbert said at the direction of the City Council, staff requested that appraisals be done on each property to substantiate the increase in value of the property associated with the improvement. He stated that in both instances, the assessments had been substantiated. He said that one property owner has since sold his property. The Mayor added that the appraisal shows substantial benefit above the amount of assessments. Page 7 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 PROJECT 491/FINAL ASSESSMENT HEARING MISCELLANEOUS OBJECTIONS/EAGAN HILL FARMS TRUNK UTILITIES 00151 After noting no formal objection, either written or in person, McCrea moved, Gustafson seconded, a motion to close the public hearing and approve the final assessment roll for these properties: 10-01400 -020-82 and 10- 01400- 010 -82 (Wescott Road Streets Utilities) and authorize their certification to the County. The City Administrator said that an assessment hearing was held on September 19, 1988, and after receiving written objection to the assessment, the subject parcel was removed from the final assessment roll. He said the City Council had directed that an appraisal be performed on the property and this has been done. The Director of Public Works then provided background on the project and said that trunk water main had been installed in the front of the property in addition to water service. The total of all assessments was $11,007.17 based upon 710 feet of frontage which in this instance is the longest dimension of the property. Mr. Colbert said if the parcel were over 3 acres with more than 200 feet of frontage, the assessment would be for only 100 feet of frontage and 1 acre with the rest being postponed subject to executing an agreement. Mr. Colbert added that the property owner, Myron Hanson, had dedicated an additional 17 foot easement beyond the standard right of way easement at no cost to the City. He said this easement had dropped Mr. Hanson's parcel below the 3 acre minimum needed to qualify for a postponement of the assessment relating to the excess frontage and area. Mr. Hanson said he had given the additional right -of -way to the City in 1972. He also said it was possible his property could be subdivided, however, he has no intention of subdividing at this time. The Mayor asked the Director of Public Works if only the house and 100' of frontage were assessed what the assessment would be. Mr. Colbert said the assessment could be reduced by $6,028 or to an assessment of $4,980. McCrea moved, Pawlenty seconded, a motion to close the public hearing and approve the final assessment with amendment in accordance with Policy 86-3 for parcel #10-02400-010 -78 for Project 491 (Eagan Hill Farm Trunk Utilities) subject to execution of any and all agreements and authorize its certification to the County. Aye: 5 Nay: 0 PROJECT 505/FINAL ASSESSMENT HEARING MISCELLANEOUS OBJECTIONS COUNTRY HOLLOW TRUNK UTILITIES The City Administrator said that an assessment hearing was held on September 19, 1988, and after receiving written objections to the assessment, the subject parcels were removed from the final assessment roll. He said the City Council had directed that appraisals be performed on the properties and they have been done. The Director of Public Works indicated that a written objection had been received from Lawrence Oldenburg and objections had been received the evening of the Council meeting from George Doerfler and James Mayer. Mr. Colbert said there was one correction to the assessment roll and that was for the Mayer parcel. He said the property qualfied for a large lot credit for trunk storm sewer; therefore, the assessment should be reduced to $3,498. He also said the Mayer and Doerfler properties were for trunk area storm sewer only. George Doerfler said that his was an unusal situation as his house is very old and has very little value. He said raw land was selling for $8- $10,000 per acre and even with 6 1/2 acres, he doubted if his property would sell for $100,000. Page 8/EAGAN CRY COUNCIL MINUTES MAY 1, 1990 00152 Councilmember McCrea expressed concerns about the amount indicated for 'appraised benefit' and questioned how in each instance of this project, the appraised benefit was exactly the amount of the assessment. The Director of Public Works said that the appraisal takes into consideration the existing zoning, the structure, the land, the underlying zoning and its highest and best use. In the appraiser's opinion, these properties had increased in value by at least the amount of the assessment. Councilmember McCrea then asked if any comparable property had been looked at. Mr. Colbert said that none had been included in the report. The Councilmember was concemed that valuations could be reached without looking at comparable properties. The Director of Public Works said there are three ways to determine values in an appraisal: market comparison approach, income approach and cost approach, which was the method used in this instance. The Mayor reiterated that these were difficult hearings. However, he said the Council had requested appraisals, they had been received, and now questioned whether they were going to be disregarded. He said the Council need only determine whether the assessment was at least equal to the value of the benefit. Mr. Doerfler said he would rather the Council handle his property as a single -family residence or as a developable plot of land. He said the property is zoned agricultural now and if the property were ever developed, it would have to be rezoned. Director of Public Works Colbert said the underlying zoning is agricultural but land use guided for D -2. Councilmember McCrea reminded Mr. Doerfler that one of the considerations was the highest and best use and the underlying zoning would mean 3-6 units on each acre. Larry Oldenburg remarked that Mr. Doerfler had covered most of the issues; however, Mr. Oldenburg said that the $10,000 in value of appraised benefit had done a great deal of harm since the County now said his property was worth more and his taxes are going up. He said the appraisal should have been done in the future when the property was developed because it isn't worth it now. Councilmember Gustafson questioned the per acre value of these properties and asked why the values couldn't be capped at $100,000 and the assessments based on that value as Mr. Doerfler had requested. The Mayor said that each homeowner could have submitted their own appraisals to refute the methodology or values being used by the City but none had. The Mayor said it would be difficult to accept different valuations based solely on the objections of the property owners. Councilmember Pawlenty asked the City Attorney what process had been used for soliciting an appraiser. City Attorney Sheldon said they choose those appraisers who appear in court often and are familiar with valuations in the County. The Councilmember then asked if the appraiser might submit to the City what the City wants to hear in order to be rehired. The City Attorney said they were not interested in those just saying what the City wished to hear. He added that all the appraisals for this meeting had been done by Mr. Ray Connolly as all had come out of the same meeting; however, they do use other appraisers. Gustafson moved, Pawlenty seconded, a motion to close the public hearing and approve the assessments for Project 505 (Miscellaneous Objections Country Hollow Trunk Utilities) for parcels #10- 02400-010 -60, #10-02400- 011059, and #10-02400-020-60, with correction to parcel #10-02400-011-59 for large lot credit and authorize their certification to the County. Aye: 5 Nay: 0 BUSINESS R-4 STUDY /AREA M The City Administrator pointed out that the action requested on this item was to continue further consideration of Area M to a future workshop session. Page 9 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 REZONING/COMPREHENSIVE GUIDE PLAN AMENDMENT DIFFLEY /CEDAR PLANNED DEVELOPMENT 00153 Councilmember Pawlenty asked why two additional parcels were requesting review when presumably the Council was reviewing Area M because the property owner had not received proper notice. Director of Community Development Runkle said that staff had been working with the property owners and were close to agreement with what the City wants and what the owners want to bring in. He said they would like to find something that all could live with. Councilmember Pawlenty asked if this would set a precedent. Mr. Runkle said of the 16 properties, these are the only three that there are major concerns with. Councilmember McCrea said she originally voted against removing Area M from the rest of the parcels being considered for rezoning because it would set a precedent and now two additional properties have come forward. Wachter moved, Gustafson seconded, a motion to continue further consideration of Area M under review as a part of the R-4 Rezoning Study to a workshop allowing a formal presentation by the property owner. Aye: 4 Nay: 1 (McCrea) The City Administrator provided a chronology on this item. He said the project first appeared on the Advisory Planning Commission agenda in January of 1990 and again in February when it was recommended for approval. The City Council heard the item for the first time in March and then referred it back to the Planning Commission with specific direction. At the March 27 APC meeting, a motion to reaffirm the February approval failed. However, the City Administrator added that whether this could be construed as a denial was open to interpretation. He then turned the discussion of the background of this item over to the Director of Community Development. Director of Community Development Runkle pointed out that the applicant had reduced the density of the original application. He said the plan that had been originally presented to the APC at their January meeting had been reduced for reconsideration in February by 17 tt was this reduced density plan that was recommended for approval. After hearing the proposal at the March 6, 1990, City Council meeting, the City Council referred the project back to the Planning Commission meeting for additional review. Mr. Runkle said the motion at that meeting did not affirm the original motion. Mr. Runkle also said the Planning Commission had reevaluated the issues and concerns regarding public safety, schools, zoning, appropriateness of use and now it was a land use decision. Mr. Runkle said the applicant was there to answer any questions. Mayor Egan said he was a little disappointed in the product coming back from the APC. He said he thought the Council had expressed their concerns to the Planning Commission and had wanted those concerns addressed He said he did not see anything in the APC action that indicated they had addressed the issue of whether this product was the project the City wanted for this site. He then asked the applicant if the project had been changed. Mike Gould of Koldt Properties said that it had not. Councilmember Gustafson asked if the R4 (apartments) had been removed from the project and the Director of Community Development said no, there were two, 140 unit apartment buildings in the project. Councilmember McCrea said that the proposal had not changed from that brought before the Council in March. The Mayor told the applicant that the City is studying R-4 and R-3 zoning in the City and is looking for a net downzoning of those properties. He said the Council was receiving the same project as before and it would be up to the developer to convince the Council that they should look at the property differently than they had on March 6. Mike Gould then attempted to clarify the developer's position on the project. He said they had reduced the density previously but had to balance economics with what was marketable and with what would serve the people Page 10 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 00154 of Eagan. He said because of the quality and uniqueness of the site, the market they wanted to reach was at that $600 -$950 rent range, or at the upper end of the rent market. He said the product would appeal to the higher income renter, many of whom would be buying in the area and rent 1 -2 years before buying. He said the quality of the project would appeal to the senior population and they have 98% occupancy in their other senior developments. He said they had paid special attention to the amenities of the project such as, landscaping, an irrigation system, maintenance free (metal) exteriors, water amenities, a 5,000 s.f. clubhouse, athletic facilities for children, and trailways. Mr. Gould said they are also working with Enron to improve the site lines. Mr. Gould then addressed some of the alternate uses that had been suggested by the Council for this property. He said he had talked to an associate with the Radisson Hotel chain and was told the hotel market is extremely soft right now. Mr. Gould also said the office space market had a 25% 35% vacancy rate. He added that if on the off chance a hotel development or corporate headquarters development were to come in, they would have to be very sizeable for a 40 acre site. He said quality was the substitute here and they would like to do the project. Mr. Peter Pfister then spoke to the Council regarding their concerns about the density of the project. He said that a typical project with 16 units per acre would translate into 50% hard cover; however, because this project has three story apartments and underground parking, they are looking at 35% hard cover. He also pointed out that the parcels involved with this development carry three different zonings: Tight industrial, agricultural, and general business. He said one of the benefits of the project would be to remove some of the industrial zoned land. They would also landscape and shield the Enron property, He said there is a lot of open space at Enron, and with the new development and landscaping, the Enron buildings would tend to subside from view. He said that their development would focus on the new town' concept integrating diverse housing types with recreation and retail on site. The concept envisioned for the Diffley /Cedar site is modeled architecturally after an English village with steep roofs, chimneys, row houses and gardens. Councilmember McCrea questioned whether the slides indicated what would actually be built or whether they were just ideas. Mr. Pfister said the slides showed conceptual drawings. The Councilmember also asked how many people were proposed to live in the development. Mr. Pfister said from 650 700. Councilmember McCrea was also concerned about the number of persons per household. Director of Community Development Runkle said that the number of persons per household in Eagan is approximately 3-4 persons in single -family and 1.5 persons in multiple. The numbers for students per household is approximately 1.25 for single -family and Tess than .5 for multifamily. Councilmember McCrea then asked with those numbers, how the development would support the daycare and retail centers. Mr. Gould said they would also serve other residents. The Councilmember said that was not a 'new town' concept. Mr. Gould said the development was not on a scale to be self- supporting. Councilmember Gustafson said an office or hotel use for this parcel may not be realistic. He said he personally did not consider a mixed residential use inappropriate for this site, particularly since the market and quality are there. He said he had looked at other developments the developer has in the Twin Cities and is assured of the quality. Councilmember Gustafson said that with all things considered, they may be hard pressed to find anything better. Mary Teske, a resident of Cinnamon Ridge, said that a hotel or the previously proposed Splashland did not excite the neighborhood and they were not anxious to have any more commercial. She said it is a residential area and she did not understand the zoning. She expressed concerns about an LPG line that ran through the property and recommended that it be checked to see if it had been abandoned. Prior to approval, however, she requested that the Council address traffic and drainage problems. Because of its location, she was concerned that properties below it would experience flooding. Page 11 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 00155 Tom Webster, the owner of three of the parcels, said they had dealt with the drainage issue when Splashland was proposed. He said even with the parking lot, the drainage was no problem. He also pointed out that there were a number of different parcels on the ridge and a number of different zonings. He said he would like to see someone development the entire area as one project rather than a piecemeal approach. He also said he has had a number of persons approach him to buy individual parcels for a gas station or a plumbing supply company, but has tried to wait for one big development. Councilmember Pawlenty said he had struggled with the quality and quantity issue. He said the developer was aware that they would have to have a quality project but the Councilmember was concerned about the details of the project. He said he liked the drawings but was hesitant until the details were bolted down with a definite commitment. He said as he looked at other alternatives for the site, the proposed project may be the lesser of two evils. The City Administrator said the Council had identified an important point and suggested that the Council direct City staff to meet with the developer to generate a development agreement. He said this would allow them to satisfy their concerns before making a commitment to the project. Councilmember McCrea asked the Director of Community Development if there were any possiblity the Metropolitan Council would not approve the project. Mr. Runkle said that in addition to the comprehensive guide plan, it would have a lesser impact as residential and would fit the environmental standards. He said he did not foresee any problem. Councilmember Wachter asked if the Council should take for granted that this was the best use of the property. He said it did not live up to his expectations. Councilmember Gustafson said the project was better than that allowed under the present zoning. With the present zoning, however, he said it would be difficult to tum down a developer who met the requirements and wanted to put in a gas station. The City Administrator asked if the Council had any desire to direct Community Development to look at other land use options. Councilmember Pawlenty said he was interested in other options' however, for the present proposal, he needed to be convinced that the quality of the exteriors was exceptional. Mayor Egan recommended a two-way dialogue between the staff and City Council during the next 30 days. Gustafson moved, McCrea seconded, a motion to direct staff to work with Koldt Properties in the formulation of a development agreement to be brought back to the City Council for their consideration at the June 5, 1990, regular City Council meeting. Councilmember McCrea wanted her second to the motion tempered with the understanding that she reserves the right not to follow through with approval for the project if the exterior quality of the development's buildings are not suitable or site sensitive or concerns about traffic circulation are not satisfactorily addressed. Aye: 4 Nay: 1 Pawlenty) Councilmember Pawlenty said he was in favor of the spirit of the project but wanted to explore other options. NEW SPECIAL PERMIT/POUCE FIREARMS RANGE CITY OF APPLE VALLEY The City Administrator said that the City of Apple Valley had approached the City several month ago regarding development of a Police shooting range or firing range and asked if the City of Eagan had any interest in Page 12/EAGAN CITY COUNCIL MINUTES MAY 1, 1990 00156 participating. Apple Valley had also contacted the City of Burnsville. The City Administrator said there were two issues to consider: 1) the special permit for the firearms range, and 2) a master plan for indoor /outdoor ranges. The Director of Community Development addressed the issue of the special permit. He said the range would be located off Yankee Doodle Road with access through the Comsery property. He indicated obtaining an easement for access would be a condition of approval. Additional conditions regarding the use of automatic weapons on site and licensing provisions would allow the City to retain some control of the site. Captain Terry Cook of the Apple Valley Police Department said he had received a directive from the Apple Valley Council to pursue a range with a joint powers agreement. He said his search has come down to this parcel. He added that the National Rifle Association said this is the 'best natural range in the State' due to the bluff located on the property. Captain Cook said they have negotiated for the purchase of the property and with Comsery for donation of an access easement to the site. Councilmember Gustafson said he favored an indoor range, however, there were reasons why an outdoor range should and could be developed with an indoor range in the future. He said an indoor range was not as condusive to actual situations. A question was then asked as to the safety of the site and especially the barrier wall. Captain Cook said that the facility would be designed after one in St. Paul. He said the barrier wall would be constructed of 2X8 timbers with 6' of rock in between. Chief Geagan said they would not allow carte blanche use of the range but would restrict it to range masters. He said all types of firearms would have to be approved before their use would be allowed at the range. The number of officers using the site would be 130 140 from the three cities. Because of the joint use and location of the site, Chief Geagan said officers could use the range during duty hours. He said overtime is presently paid to send officers to Rosemount outside their duty hours. Councilmember McCrea also expressed concerns as to the safety of the site. Chief Geagan said most of the shooting would be with 'reloads' which would control the distance. He said the range would be as safe as they can make it. Chief Geagan also pointed out that a range has been there for three years and there hasn't been a problem. Councilmember Wachter asked if money for participation in a joint powers agreement had been budgeted. Chief Geagan said that Apple Valley would be going ahead with the site with or without Eagan's participation; however, $30,000 had been allocated last year for an outdoor range. He said Bumsville may develop an indoor range also with a joint powers agreement, but Chief Geagan said the Apple Valley venture was the most likely to happen in the foreseeable future. In answer to miscellaneous questions, Chief Geagan said the Police Department had no objection to a yearly review of calibers used on the firing range. As to the impact on wildlife, there is a range there now. McCrea moved, Gustafson seconded, a motion to approve a special permit that would allow the City of Apple Valley to construct a police firearms range within a light indistrial district located in Section 8, subject to the following conditions: 1. Annual review of the caliber of firearms being used at the range. 2. Compliance with all licensing requirements. Aye: 5 Nay: 0 Page 13 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 After brief discussion, McCrea moved, Pawlenty seconded, a motion to approve a special permit to the Eagan Christian Center for two years to allow the Eagan Christian Center to use a building located on Tight industrial zoned property for the purpose of holding church meetings subject to the following conditions: 1. The temporary permit shall expire two years after approval. 2. Church functions shall be limited to evenings and weekends. 3. The permit shall be subject to all Code requirements. Aye: 5 Nay: 0 SPECIAL PERMIT/EAGAN CHRISTIAN CENTER CONDITIONAL USE PERMIT/VETERINARY CONIC 00157 Gustafson moved, Wachter seconded, a motion to approve a conditional use permit for Elizabeth A. Aird to allow a veterinarian clinic in a CSC district on Lot 4, Block 1, Town Centre 100 6th Addition, subject to all applicable ordinance and licensing requirements. Aye: 5 Nay: 0 TRAFFIC SIGNAL /COACHMAN YANKEE DOODLE ROADS The City Administrator said that County Commission Chapdelaine and his staff had recently received a number of call regarding a signal at Coachman and Yankee Doodle Roads. He said a signal at this intersection is not planned until 1991. After review by the County Board and their staff, the City Administrator said the County is bringing the issue to the City Council to see if there is any interest in accelerating the installation. The Director of Public Works said financing for the signal could be one of two ways: 1) the City prefinances the County's share of $45,000 in addition to the City's equal share, or 2)request the County try to respond by arranging appropriate financing for their share. Considering budgetary constraints, Councilmember Wachter questioned where the money would come from. The Director of Public Works said it would have to come out of the major street fund. The Mayor said in talking with Commissioner Chapdelaine, the earliest the County could install the signal would be late November. Councilmember Gustafson said the signal was probably needed yesterday rather than in 1990 or 1991; however, he asked how many more are as sensitive as this? The Director of Public Works said there were a number of them and the pressures would be there to also accelerate those installations. Mayor Egan then asked what the process had been that they had just gone through. He said the Council had reviewed the five year plan and now were being asked to change this plan and its priorities. The City Administrator said there had been justification to move up the Cliff Road installation; however, at some point the schedule would have to be followed perhaps with a review every six months. Councilmember Pawlenty said the Cliff Road signal was an exception because of the heavy pedestrian traffic. He said, however, that unless the Coachman and Yankee Doodle Road signal was at the top of the priority list, he was recommending the Council follow the plan. Mayor Egan asked how much time savings was involved? The Director of Public Works said approximately six months. Page 14 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 0G158 Pawlenty moved, Gustafson seconded, a motion to adhere to the five -year Capital Improvements Program for installation of traffic signals within the City. Aye: 5 Nay: 0 RE YOUR HEART TO THE HUNGRY WEEK McCrea moved, Pawlenty seconded, a motion to approve the resolution proclaiming the week of April 30 May 6, 1990, as Open Your Heart to the Hungry Week. Aye: 5 Nay: 0 R-90.31 0 CONT IAACT 90- 2/PARK SHELTER BUILDINGS Wachter moved, Gustafson seconded, a motion to approve Contract 90-2, for the construction of park shelter buildings, and to award the contract to W. H. Oates in the amount of $235,746. Aye: 4 Nay: 1 (McCrea) Councilmember McCrea wanted it noted that she had voted against the Contract because she had said she wouldn't support another park building until the cost of maintenance is known. Councilmember Gustafson said there are so few costs that can be controlled, i.e., fire, police, that perhaps these are dollars that can be controlled. Councilmember McCrea said the Council had heard from the residents that they did not want tax increment financing but yet the City spends $900,000 a year to maintain a parks program. The Councilmember will continue to be concerned. City Administrator Hedges said this contract is the last of the construction approved with the 1984 Park Bond Referendum. He said that development had occurred bit by bit each summer and this will use up the remainder of bond funds. Councilmember McCrea said she had voted against additional grant applications for park buildings as they not only required staff time but matching funds as well. Councilmember Wachter recommended the issue be addressed with the budget. LAND RENTAL AGREEMENT/LEXINGTON DIFFLEY SITE Gustafson moved, McCrea seconded, a motion to receive the bid for the rental of City property located at Lexington and Diffley Roads and award the rental to Cliff Kirschner for $20 per acre. Aye: 5 Nay: 0 PROJECT 596/WOODLANDS NORTH ADDITION STREETS UTILITIES Wachter moved, Pawlenty seconded, a motion to receive the petition for Project 596, Woodlands North Streets Utilities) and authorize the preparation of a feasibility report and detailed plans and specifications. Aye: 5 Nay: 0 CUFF ROAD RIGHT-OF-WAY WAY Egan moved, Gustafson seconded, a motion to prepare a recommendation to the County requesting a reduction in the width of right -of -way on Cliff Road adjacent to the Park Center Addition from the present standard of 100' half right -of -way to an 80' half right -of-way plus 10' trailway easement. Aye: 5 Nay: 0 Page 15 /EAGAN CITY COUNCIL MINUTES MAY 1, 1990 LEXINGTON POINTE/TRAPP FARM PARK 00159 Pawlenty moved, Gustufson seconded, a motion to approve $6000 to be paid from the Park Site Fund to Tri- Land Properties for partial reimbursement for expenses incurred in the Lexington Pointe/Trapp Farm Park land negotiations. Aye: 4 Nay: 1 (Wachter) SPECIAL CITY COUNCIL MEETINGS Egan moved, McCrea seconded, a motion to approve a special City Council work session for Thursday May 24, 1990, at 5:30 p.m. Aye: 5 Nay: 0 Gustafson moved, Pawlenty seconded a motion to approve a special City Council work session for June 11, 1990, at 5:30 p.m. Aye: 5 Nay: 0 TEMPORARY ENGINEERING INTERN Gustafson moved, Wachter seconded, a motion to approve the temporary hiring of Scott Merkley until May 31, 1990, as an Engineering Intern with the provision that he cannot participate as a voting member of the Advisory Planning Commission during his temporary employment. Aye: 5 Nay: 0 CHECKLIST Wachter moved, Egan seconded, a motion to approve the checklist dated May 1, 1990, in the amount of $317,279.37. Aye: 5 Nay: 0 EXECUTIVE SESSION/ADJOURNMENT The City Council adjourned the regular meeting to an executive session to consider attomey /client privileged information at 11:45 p.m. Those in attendance were Mayor Egan, Councilmembers Gustafson, McCrea, Pawlenty and Wachter, City Administrator Hedges and City Attorney Sheldon. The executive session adjourned at 12:35 a.m. KF