11/14/2006 - City Council Finance CommitteeMeeting Notes
Finance Committee Meeting
November 14, 2006
DRAFT FOR REVIEW ONLY
Attendance: Mayor Geagan, Councilmember Carlson, City Administrator
Hedges, Assistant City Attorney Bauer, Fiscal Consultant Inman, and Director of
Administrative Services VanOverbeke. Director of Community Development
Hohenstein participated via speaker telephone.
I. Agenda Adoption
The agenda was adopted as presented.
II. Cedar Grove Redevelopment District / Discuss Options for the
Development of the Core Area of the Cedar Grove Redevelopment
District
In response to a question from Councilmember Carlson regarding the accuracy
of the financial information presented by Schaffer -Richardson (S -R), City
Administrator Hedges responded that the projections as presented were the
basis for the suggestion from S -R that the City needs to commit more money to
the project either through assuming more costs or by further writing down the
land costs for S -R. City Administrator Hedges provided additional background
and explained numerous changes in the potential development from the time S -R
was selected as the master developer. Those changes include market
conditions for housing and the resulting implications for the housing/commercial
mix, City ownership of more than half of the property combined with continuing
acquisition efforts, successful relocation of numerous businesses, potential
opportunities for more senior housing, and improvements in other market
sectors.
He further explained the difficulty for the City and consultants to determine if
more money/developer incentives are necessary or appropriate without more
detailed concept plans that would be feasible, acceptable, and market
supportable. This additional information has not been provided by S -R.
The Finance Committee expressed agreement to review potential modifications
to the original redevelopment vision as reflected in the early S -R concept plans,
but emphasized that the overall redevelopment vision should not change with
each market fluctuation.
The Finance Committee reiterated the City's commitment to continue this
redevelopment opportunity either with S -R or with a new development partner. In
the event S -R is no longer the master developer they would be welcome to
continue participation in the project as a developer of components matching their
strengths.
In response to a question from Mayor Geagan, City Administrator Hedges noted
that Burnsville's Heart of the City Project has also experienced some challenges
in responding to the market and that the Cub Foods and ancillary retail
development has helped jump start certain components of Heart of the City
development. Financial Consultant Inman also noted that the questions and
relationship between S -R and Eagan are not unique to this redevelopment
project. In general, it seems to be the rule rather than the exception that the first
master developer does not see the project through to completion.
Assistant City Attorney Bauer was directed to contact the S -R attorney to. discuss
a potential parting of the ways per the letter from Brad Schafer dated November
2, 2006. The Finance Committee stressed that future communications and
negotiations should emphatically emphasize that the City is committed to
continuing the project and is moving ahead with the redevelopment. Mr. Inman
was directed to informally talk to others regarding potential interest in becoming
the master developer on this project and in getting their response to what type of
overall project they see as market feasible. The Finance Committee stressed the
importance of continuing to move the redevelopment along and to engage other
potential developers as soon as possible and practical.
The Finance Committee discussed the need to continue aggressively pursuing
the acquisition of property in light of the new eminent domain legislation and the
resulting deadlines grandfathered into this project.
The Finance Committee directed that this item be brought before the full City
Council for consideration on December 4, 2006,
III.Discuss Funding Alternatives for Environmental Clean Up Required as
a Result of the Site Assessment Project
City Administrator Hedges briefly noted potential sites in the Cedar Grove
Redevelopment District that might require environmental clean up and that the
City has been pursuing all available avenues for cost sharing. More site specific
information will become available as actual development proceeds. Mr. Inman
also noted potential revenue sources related to TIF to assist with clean up costs.
IV. Homestead Market Value Credit
City Administrator Hedges updated the Finance Committee on staff progress in
surveying other communities regarding final 2007 property tax levies and
whether or not cities will include full or partial MVHC levies. He also noted that
the item is on the upcoming agenda for the Operating Committee of the
Municipal Legislative Commission. Staff will be providing additional information
to the City Council as part of the Truth in Taxation Hearing and the budget and
Levy approval process.
V. Adjournment
Page 2 of 2
would like to reserve a booth. Where do we send the registration money and to whom do we
make out the check?
Sincerely,
Kevin McClure, lead pastor
new beginnings Christian Church
www. theshepherd sflo ck. org
11/22/2006