07/21/1992 - City Council Special •
AGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
July 21, 1992
5:00 p.m.
I. ROLL CALL/ADOPT AGENDA
II. CEDARVALE UPDATE
III. OTHER BUSINESS
IV. ADJOURNMENT
The City of Eagan is committed to the policy that all persons have equal access to its
programs, services, activities, facilities and employment without regard to race,color, creed,
religion, national origin, sex, disability, age, marital status or status with regard to public
assistance. Auxiliary aids for persons with disabilities will be provided upon advance notice
of at least 96 hours. If a notice of less than 96 hours is received, the City of Eagan will
attempt to provide such aid.
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: JULY 2, 1992
SUBJECT: SPECIAL CITY COUNCIL MEETING/JULY 21, 1992
At the July 7, 1992 regular City Council meeting, a special City Council workshop was
scheduled for 5:00 p.m., Tuesday, July 21, at the Municipal Center building in Conference
Rooms A and B. The purpose of the meeting is to discuss the Cedarvale Study and any
other business appropriate for a workshop session.
Enclosed on pages c2 through D is a copy of the Executive Summary for the Cedarvale
Study that was prepared by Jim McComb of McComb & Associates for your review. If any
member of the City Council has misplaced the full study and would like an additional copy,
feel free to contact the City Administrator's office. Also enclosed on pages ? through
/D is a copy of the Economic Development Goals which include review and consideration
of economic/distressed commercial districts such as the Greater Cedarvale Area.
There is no specific other business at this time unless there is sufficient time for an update
by the Personnel Committee on their recent meeting and an update by City Councilmembers
Awada and McCrea on their recent meeting with Anthony Caponi to resolve matters
pertinent to the Diffley Road improvements and the Art Park Project on behalf of the City
Council.
/S/ Thomas L. Hedges
City Administrator
Executive Summary
CEDARVALE FINDINGS AND RECOMMENDATIONS
This report provides a comprehensive analysis of the Cedarvale
shopping area, including its current characteristics, trade area
and purchasing power, competition and problems confronting existing
businesses. This section summarizes key findings related to each
of these areas and then details recommendations to improve business
prospects in the area.
Site Evaluation
The Cedarvale study area includes land use classifications for
general business, neighborhood business, community shopping center
and industrial. These zoning land uses are generally consistent
with existing uses in the area and those that could occur in the
future. The neighborhood business classification for the Silver
Bell Center area is appropriate as is the general business
classification for the area between Cedarvale Boulevard and Highway
13. The commercial area south of Silver Bell, categorized as
community shopping center, is consistent with uses that currently
exist or are likely to locate there in the future. The area west
of Highway 13 should continue to develop with business and
industrial uses similar to those now located in the area.
The Cedarvale commercial area contains a mix of retail, restau-
rants, entertainment, recreation and retail services and business
services in three shopping centers and a business center. Vacant
buildings and changing building uses testify to the evolving nature
of business activities in the area.
Access and Visibility
State Highways 13 and 77 provide excellent regional access to the
Cedarvale area. Traffic counts are high, particularly on Highway
77, with over 62, 000 trips daily and almost 20,000 trips on Highway
13. Limited visibility of the Cedarvale area from Highway 77 and
to some extent 13 negate much of the potential benefit that could
be derived from these high traffic volumes.
Visibility of the Cedarvale area, particularly south of Silver Bell
_Road, from these highways is poor at best. McDonalds, Silver Bell
Center and Express Donuts enjoy the best visibility of any business
establishment in the area other than U-Haul, which has a very
visible pylon sign.
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Cedarvale developed when Highway 13 and Cedar Avenue (Highway 77)
intersected with an at-grade intersection. Since Cedar Avenue was
reconstructed to freeway standards, visibility and accessibility to
the commercial area has suffered a significant reduction and
properties that had enjoyed high visibility and strong access were
left with poor access and poor visibility.
The change in accessibility and visibility has compounded inherent
problems represented by inconsistent and confusing building
orientation that exists in the area. This is most evident in the
area between Silver Bell Road and Rahn Road where most businesses
orient either toward Cedarvale Boulevard or Beau D'Rue Drive.
Vacant commercial and industrial buildings contribute to the poor
visual impression.
Building orientation in the Cedarvale area is confusing due to
obsolete road patterns and parcel sizes. These parcel and building
locations make sense based on the existing road network. However,
the road network and development patterns are confusing to tenants
and customers familiar with contemporary land use patterns for
shopping areas.
Visual Issues
Silver Bell Road is the main entrance to the Cedarvale Commercial
area. The visual impression at this intersection is marred by the
industrial buildings, vacant buildings and deferred maintenance on
commercial structures. Businesses located to the south along
Cedarvale Drive suffer from poor visibility from this intersection.
The overwhelming visual image of the Cedarvale commercial area east
of Highway 13 is one of deterioration and lack of concern by
property owners. This impression overwhelms the positive images of
the few businesses that have maintained their property.
Cedarvale Trade Area
Cedarvale's trade area was delineated based on the results of.
business interviews and freeway and highway arterial access
supplemented by firm knowledge of shopping center trade areas and
retailing patterns in the Twin Cities.
The Cedarvale trade area is comprised of the cities of Eagan, Apple
Valley, Burnsville and Rosemount. Cedarvale can expect to draw 80
to 85 percent of its sales from within this trade area. The
- remainder of Cedarvale's resident-based sales are expected to be
derived from persons residing outside the trade area, primarily
from employees.
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1
Employment has grown rapidly in Eagan, reaching an estimated 20,700
in 1990. The Cedarvale trade area has grown rapidly during the
Eighties, increasing to an estimated .142,000 people and 50, 500
households.
Household incomes in 19;0 averaged $48, 800 and are expected to
increase almost $57,000 by 1995. Average family incomes were
estimated at about $54,000 in 1990 and are estimated to increase to
almost $65,000 by 1995.
It is estimated that aggregate 1995 income for the Cedarvale trade
area will exceed $3. 5 billion. Approximately one-third or $1.2
billion will be spent on shopping, dining, entertainment, recre-
ation and services.
Business Interviews
Interviews indicated that Cedarvale customers are primarily in
their thirties and forties with children. Their shopping frequency
varies from one to three times per week to the seasonal visit
depending on the business. Customers primarily reside or work in
Eagan or its adjoining cities of Apple Valley, Burnsville and in
some cases Rosemount.
Business owners and managers felt the main strengths of the
Cedarvale area were the age of the commercial area, established
residential neighborhoods which create a sense of permanency and
familiarity with the area. Other strengths included its expansion
potential and the presence of Grand Slam and U.S. Swim and Fitness
and the upgrading of the Cedarvale Mall interior.
Business owners and managers were candid about area problems,
including access, lighting, building maintenance, street, median
and curb maintenance, weed and shrub control and the overall
rundown image of the area.
Competition
•
The Cedarvale commercial area faces competition from a host of new
shopping centers that have developed in Eagan over the past ten
years. These centers have greatly reduced the functional trade
area for neighborhood and community center type services. This has
led to the evolution of the Cedarvale area as a convenience center
(Silver Bell Center) and a location for destination type business-
es: Grand Slam, U.S. Swim and Fitness and Eagan Bowl. This
evolution of businesses has served to increase the size of the
trade area to include the four communities discussed previously.
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RECOMMENDATIONS
Implementing recommendations to improve occupancies and business
performance in the Cedarvale shopping area will require coordinated
and cooperative action between governmental units, property owners
and businesses. These actions should be focused on improving
visibility and access, rationalizing land uses, correcting
deferred maintenance and coordinated merchandising and marketing.
Each of these areas is discussed in greater detail in this section.
Visibility
Cedarvale commercial area visibility needs to be improved from both
Highways 77 and 13. This could be accomplished by the following:
o Erecting pylon signs with visibility characteristics
similar to existing U-Haul sign for major shopping destina-
tions. These signs should be large enough to attract
attention and be easily read from automobiles on the two
highways.
o Trees and weeds in the former Highway 13 right-of-way area
should be removed to improve visibility of the commercial
area.
o Mature pine trees in the vicinity of Cedarvale mall should
be removed and replaced with plantings that will maintain
a lower profile.
o The Cedarvale commercial area needs visual identity as a
commercial area. This could be accomplished by creating
entrance identity at Silver Bell Road to create a sense of
arrival. In addition, consistent identifying treatment
should be used within the public and private areas to
create a sense of unity. This could consist of street
landscaping, lighting, banners or other approaches that •
experts could suggest. Design consultants should be
engaged to provide solutions.
•
Access
Access to the Cedarvale shopping area from Highway 13 should be
improved. Possible improvements include the following:
o Access from Highway 13 for traffic from the southwest and
south could be measurably improved by a right-turn lane off
Highway 13 that would connect with Rahn Road. This would .
provide much better visibility for Cedarvale Mall and
businesses located to the south. While there may be design
concerns related to this recommendation, it would greatly
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Ltc-
improve accessibility to trade area residents living south
along State Highway 77.
o Consultant studies have recommended reconfiguring the
intersection of Silver Bell and Cedarvale Drive in the
vicinity of Express Donuts. This solution should be
pursued.
o Entrances to commercial properties along Cedarvale Boule-
vard should be studied to determine if they are in the best
location to provide both visibility and accessibility to '
the individual properties.
Maintenance
Business owners and managers commented about property. maintenance
as related to both public and private spaces. These issues were
readily apparent during the course of this study. Maintenance
issues that should be addressed within the Cedarvale area include
the following:
o Right-of-way areas, both local and state controlled, should
be properly maintained. Roadway surfaces should be in good
repair. Landscaped areas should be mowed and plants
trimmed to maintain a well-cared for look.
o Owners of vacant buildings representing obsolete uses and
those with characteristic franchise architecture should
have them demolished and the site cleared. These sites
have more potential as vacant land than for reuse of the
existing buildings.
o Buildings with improper street orientation should be either
reconfigured to provide proper orientation or demolished.
o Deteriorated parking areas should be repaired and paved and
striped to present a properly maintained image to custom-
ers. The parking lot is the customer's first pedestrian
area in the shopping experience and should be treated with
more concern than is evident at many of the properties in
the Cedarvale area.
o Parking areas should be properly lighted to create a
feeling of confidence and safety during evening hours.
o Building exteriors should be repaired, painted and updated
as necessary to present a properly maintained image to the
public. There are numerous examples of poorly maintained
buildings with deteriorated signage, missing signage,
peeling paint and other indications of deterioration.
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6
Land Use
Land use within the Cedarvale area should be rationalized to
conform with contemporary commercial standards. Consideration
should be given to eliminating the industrial uses in the area of
Silver Bell Road between Cedarvale Boulevard and Beau D'Rue Drive.
This is a highly visible location for the commercial area and these
buildings create the wrong visual impression.
In the area south of Cedarvale Mall, buildings and land use area
should be studied and improved as part of a program to strengthen
commercial activities in the area.
Cedarvale is the location of many automobile service and supply
type businesses. Some of these businesses are located west of
Cedarvale Drive, along with other uses. Concentration of auto
oriented uses in this area should be pursued as a long-term
objective. The area south of Silver Bell Road should be redevel-
oped with destination type uses consistent with the merchandising
recommendations contained in the next section.
Merchandising
The Cedarvale commercial area must evolve into a different type of
retail area than has existed in the past. Some of the existing
businesses and new business which have located in the area provide
support for this recommendation. This recommendation is also
supported by the types of businesses that have left the area.
Area businesses that appear to be doing well are destination uses,
including restaurants, entertainment and fitness. The personal and
business services, convenience shopping and automotive uses also
appear successful. These businesses provide a strong basis for
further redevelopment and merchandising activities.
Cedarvale should focus on becoming a location for destination
businesses which focus on serving the following areas:
•
o Families with children
o Fitness and health
o Dining
o Entertainment
o Outdoor activities
o Sporting goods
o Personal services
o Business services
o Automotive supply and repair
These businesses will draw their primary support from the trade
area, but can serve as a destination for residents of a broader
area. Grand Slam has already achieved this objective.
viii
r
Business uses consistent with this orientation include the
following:
Retail Tenants
Play It Again Sports Team Center
Penn Cycle GBS Sports
Merle Norman's Fan Fair Pro Golf-Nevada Bob's
Shields Midwest Mountaineering •
Herman's Kokesh
Burger Brothers Bwana Archers
Hoigaards Scuba Outlet
Midwestern Water Sports Strauss Skate & Bicycle
Gymboree Croquet America
Soccer Field Racquet Specialists
Restaurants
Grandma's Main Event
Champs Macaluso's Sports Bar & Grill
Old Country Buffet TGI Friday's
Samurai
These specific businesses may or may not be interested in locating
in Cedarvale. They are. cited to provide a general idea of the
business uses that are consistent with the overall merchandise
concept.
Marketing
•
Businesses located in the Cedarvale commercial area should
cooperatively market to trade area households creating a unified
marketing image for the area. This should include focusing on
target markets for businesses located in the area and sponsoring
events that will attract customers. These activities are needed to
establish Cedarvale' s location and business activities in the minds
of trade area residents, most of whom are new residents, and more
than likely, have no idea that Cedarvale exists. Cedarvale
businesses need to assume that most trade area residents don't know
they exist and market as if they were new businesses in the area.
The above recommendations cover a broad range of issues and areas
of concern. Recommendations concerning visibility, access and
maintenance are critical to future success of the commercial area.
Without specific attention to these areas of concern it will be
difficult to achieve success in the merchandising area and build a
healthy base of business in Cedarvale.
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CITY OF EAGAN
ECONOMIC DEVELOPMENT GOALS
8/6/91
1 . Retain, Expand and Diversify Tax Base
- Reep residential property taxes as low as possible
through broad, substantial tax base
- Limit adverse effects to community's revenue position due
to economic conditions
- Achieve economies of scale available for larger
concentrations of property value
2 . Retain, Expand and Diversify Employment Base
- Provide job opportunities for Eagan residents
Limit dependence on narrow job categories
- Enhance buying power for Eagan businesses' goods and
services
3 . Enhance the Image and Visibility of the City
- Encourage sense of community and community identity
through recognition of City as economic activity center,
corporate headquarters, etc.
- Enhance external image of City as economic destination,
corporate center, etc.
- Develop identity as major economic center in addition to
the Minneapolis/St . Paul central business districts as
Bloomington/494 strip is doing.
4 . Attract Primary Dollars from Outside the Community
- Produce goods and services sold outside of the community
in regional , statewide, national and international
markets such that dollars are brought into the community
and not just circulated within it.
- Improve Eagan ' s ability to attract shoppers and service
users from outside of the community from the freeway and
highway system.
5 . Retain, Expand and Diversify Retail and Service Facilities for
Eagan Residents , Employees and Businesses
- Create massings and synergies of retail activity
- Provide a broader spectrum of locally available choices
in the areas of retail goods and services to reduce the
outflow of Eagan dollars to other communities and to
reduce Eagan residents' dependence on long car trips for
goods and services .
6 . Create Massings of Economic Activity
- Create focuses and areas of commercial/industrial , retail
and hospitality/entertainment activity that will natually
encourage related and spin-off businesses.
- Encourage substantial development of existing economic
activity areas within context of Comprehensive Land Use
Guide Plan.
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ECONOMIC DEVELOPMENT TARGETS ti
1. Commercial/Industrial
- Encourage Head of Household Job Formation
- Attract Clean Industry/Manufacturing
- Attract Service Industries
- Encourage Expanded Business Service Sector
Promote Eagan as Location for Headquarters and Branches
of Major Companies
2. Hospitality
- Attract Visitors and Tourism
Visitors and Convention Bureau
- Capitalize on Mall of America Market and Traffic
Expand Lodging Opportunities for Local Businesses
3. Retail
- Capitalize on Mall of America Market and Traffic
- Explore Other Regional Market Opportunities
s
- Attract Larger/Major Anchors
- Encourage Big Ticket Retail such as Auto and Marine
- Facilitate Revitalization/Redevelopment of all
depressed areas
Specifically:
Men's and Women's Fashions
- Upscale Grocery
- Department/Junior Department Stores
- Furniture
- Full-Service Sporting Goods
- Electronics
- Office Supplies/Stationary
- Camping Outfitters
- Hobby and Crafts
Home Maintenance
4 . Entertainment/Service
- Expand Available Food and Beverage Options
- Promote Youth-Oriented Entertainment
Attract Evening Entertainment Opportunities
Specifically:
- Upscale and Ethnic Restaurants
- Theaters
- Racquet Sports
Golf Facilities
JD
MEMORANDUM
TO: Tom Hedges, City Administrator
FROM: City Attorney's Office PRIVILEGED AND CONFIDENTIAL
DATE: Ju]Ly 17, 1992
RE: Project 578/Greer Assessment Appeal
Our. File No. 206-9773
As you may recall from our latest memo on this matter, the City of
Eagan was successful in its argument before the Minnesota Board of
Appeals in sustaining the dismissal of an assessment appeal brought
by the Greers. The dismissal centered around the failure by the
Greers through their attorney to properly file their Notice of Appeal
with the District Court within the time frame set forth in the
statutes.
Following the City Council meeting on July 7, 1992 , I requested
direction from the City Council in connection with a request by the
Greers' attorney, Joe Christenson to seek to settle the Greers' claim
against the City somewhere around $. 50 on the dollar of the
assessment. As you may recall, the Council was not inclined to settle
this matter for anything less than the amount of the total assessment
particularly in light of the fact, that the Greers next door neighbor
had lost her appeal at the trial court.
Yesterday I had an opportunity to meet with Joe Christenson, whom
again, sought to try to reach an accommodation for his clients. His
clients still have until the end of July to contest the decision by
the Court of Appeals to the Minnesota Supreme Court. Any such action
would necessitate an expense of a couple of thousand dollars to the
City. Mr. Christenson's present offer to the City in return for
waiving the Greers' right of appeal, would be to have the City remove
the sanitary lateral from the assessment roll at this time. The
sanitary lateral assessment is in an amount equal to $4 , 129 . 50. Mr.
Christenson's alternative would be that this amount would be payable
by the Greers and/or their successors at the time that the Greers'
septic system fails to work or prior thereto if they should choose to
connect to the City system. This payment would be made in lump sum
prior to their connecting to the system.
Mr. Christenson explained that the Greers are elderly homeowners whom
could not "afford" to bear the total costs of the assessments. He
indicated that the Greers' mortgage company paid the first half of
the taxes and assessments due against the parcel and have adjusted
the monthly payment due from the Greers to account for the large
IL .
increase required in their tax escrow for the payment of the
assessments. This increase has forced the Greers to not be able to
make their monthly payments and they risk the loss of the property to
the mortgage company as a result. Mr. Christenson indicated that
obviously he would provide "assistance" to his clients so that they
would not ]Lose their property, but was hoping the City would likewise
help the Greers under the circumstances.
Our analysis of Mr. Christenson's offer is that there is merit toward
reducing the City's exposure to attorney's fees in return for
obtaining the full amount of the assessment. Mr. Christenson does not
seek to reduce the obligation of the Greers, but rather seeks to
defer the payment for the sanitary sewer lateral only. Again, these
monies would be collected at the time that the Greers were to connect
to the sanitary system. I mentioned to Mr. Christenson that we would
review this matter with the appropriate officials at the City and
hoped to get him a response following the next City Council meeting.
If you have any questions or concerns regarding this matter, please
give me a call otherwise I will be happy to discuss this item with
you on Tuesday afternoon.
MGD/wkt