06/24/1997 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
June 24,1997
6:00 p.m.
Municipal Center Building
I. ROLL CALL & ADOPTION OF AGENDA
II. VISITORS TO BE HEARD
III. LAND USE CONSIDERATION FOR OSTENSON PROPERTY
IV. UPDATE MIGHTY DUCKS FUNDING & FURTHER
DISCUSSION RE: SECOND SHEET OF ICE
7:30 V. COLLABORATIVE MEETING
VI. OTHER BUSINESS
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MEMO
city of eagan
TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: JUNE 20,1997
SUBJECT: SPECIAL CITY COUNCIL MEETING/JUNE 24,1997
There are only two items scheduled for discussion at the Special City Council meeting that
precede the collaborative meeting schedule for 7:30 p.m. Therefore, the Special City
Council meeting is scheduled for 6:00 p.m. instead of the traditional 5:00 p.m. Due to the
later start, there will be no dinner served.
Land Use Consideration for Ostenson Property
The Ostenson property, which is located adjacent and directly north of the Eagan Promenade
and generally south of the bulk mail facility, is zoned Industrial (I-1). The property is
guided central area. Several weeks ago, the City Council suggested that a contact be made
with the owner with the suggestion that their property be developed as an office park. A
contact was made by Senior Planner Ridley with Jim Ostenson. Mr. Ostenson seems
interested in developing his property; however, he was not opposed or receptive to initiating
a rezoning to Business Park.
The public policy question before the City Council is whether the Cite should initiate a
rezoning to ensure an office park environment adjacent and north of the Eagan Promenade
development:.
For additional information, refer to a memo prepared by Senior Planner Ridley enclosed on
pages throughLC
.
DIRECTION TO BE CONSIDERED: To provide staff direction to proceed with a
further contact with Jim Ostenson regarding the future zoning status of his property and
provide further direction regarding a City Council initiative to exercise rezoning application.
Update Mighty Ducks Funding & Further Discussion Re: Second Sheet of Ice
The City or Eagan has learned that an announcement will be made on Monday, June 23,
regarding the status of the Mighty Ducks funding for 1997. Information the City has
received indicates that the additional $125,000 grant Ail] be awarded to the City of Eagan
for the proposed second sheet of ice.
As a reminder, the City Council did take action at a Special City Council meeting held on
March 4 directing staff to proceed with the Mighty Ducks funding request for the additional
$125,000, bringing the total grant award to $250,000 for the second ice sheet. For a copy of
those minutes, refer to pages through.
Presented at the March 4 meeting was a possible funding scenario if the City is successful in
obtaining the additional $125,000 in grant funds. The following is a copy of that scenario:
Estimated Project Budget J2,190.500
Cost Reduction - Sales Tax Savings $ 60,000
Mighty Ducks Grant 250,000
Revenue Bond 1,350,000(')
Equipment Provided by Lease Purchase
Hockey Association 400,000(2'
Hockey Association ContributiorL/In-Kind 130.550
Total Funding $2,190,550
(')Assumes an internally funded revenue bond with interest earnings on the bond reserve
available for debt service.
'`'Estimated cash available from ten years of $50,000 annual debt service payments.
It is anticipated that the Eagan Hockey Association will be present to share some comments,
specifically, their financial commitment to the second sheet of ice.
City- staff is looking for direction on the following:
l) Authorization to complete the contract agreement with the State of Minnesota that
the second sheet of ice project will proceed ahead subject to the $250,000 funding
allocation;
2) Staff will need direction regarding the financing alternatives that were discussed at
the March 4 Special City Council meeting;
3) Authorization is necessary to proceed with the architectural services provided by
ACC to complete the detailed plans and specifications; and
4) Financing of a unisex bathroom proposed for an exterior entrance to accommodate
the wading pool needs further discussion and direction.
At this work session, only direction is to be provided on these four items with official action
scheduled for the July 1 City Council meeting.
For additional information on the funding alternatives and budget that was presented at the
March 4 Special City Council meeting, refer to a memo prepared by the Director of Parks &
Recreati dated February entitled, "Second Ice Sheet - Mighty Ducks Grant' enclosed on
pages through.
DIRECTION TO BE CONSIDERED: To provide staff direction on the four items stated
above. Formal action on these items will be decided at a regular City Council meeting,
possibly scheduled for the July 1 meeting.
COLLABORATIVE MEETING
A collaborative meeting is scheduled for Tuesday, June 24, beginning at 7:30 p.m. For a
copy of letter that was distributed and the mailing list receiving the distribution, refer to
pages &L3 through --f-. The collaborative meeting should end at approximately 8:45 -
9:00 P.M.
/S/ Thomas L. Hedges
City Administrator
3
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i
city of eagan
TO: Tom Hedges, City Administrator
FROM: Mike Ridley, Senior Planner
DATE: June 20, 1997
RE: Ostenson/Avery Property
At a regular City Council meeting several weeks ago the Council asked if staff "vas aware
of any development proposed for the above referenced property, currently zoned
industrial. The 55 acre site is located north of Eagan Promenade and south of the USPS
Bulk Mail Center. Staff was not aware of any specific development plan and
Councilmember Awada suggested that we encourage the owner to develop the site as
office.
This information was forwarded to the owner, Jim Ostenson, who does not necessarily
oppose office development but is not sure what the market will demand for this property.
Because office uses are permitted in the Industrial Zoning District, staff is looking for
direction on whether or not the City should proactively approach this situation by perhaps
initiating a Rezoning to a more restrictive district.
BACKGROUND
The site was subdivided and platted as Lexington Addition almost 30 years ago. The
intended development at that time is unkno«-n. The property was zoned R-3 until the
early 1990's when the City initiated a Rezoning to LI. Our records indicate that the site
had been designated Industrial in the Comprehensive Guide Plan since the 1970's and
until the creation of the City's Central Area designation.
EXISTING CONDITIONS
The site is zoned Limited Industrial (LI) and designated in the Comprehensive Guide
Plan as Central Area (CA). The site contains some severe topography, many wetlands,
and a significant amount of trees.
It is our understanding that the USPS has successfully negotiated the purchase of
approximately 13 acres of the site to add to the Bulk Mail property. However, the
property transfer cannot be completed and recorded at Dakota County until the City
approves a new subdivision that defines the boundary of the property the USPS wishes to
acquire.
ACTION TO CONSIDER
Due to the site being located in the northeast quadrant of the City's Central Area and it's
proximity to the Eagan Promenade (retail & residential) and I -35E, does the City Council
wish to initiate a Rezoning of some or all of the site? Two possible options are:
To specifically encourage office development, the Zoning District specifically
designed to be compatible with residential development that includes office as a
permitted use is Limited Business.
2. To prohibit outdoor storage andror truck freight terminals while still allowing office,
officelsho«-room, and office.?warehouse the Business Park Zoning District would be
appropriate.
Attached to this memo are location maps and the LI, LB, and BP use district information.
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Subd. 16. I-1 limited industrial district.
A. Permitted uses. Within any I-1 district, no structure
or land shall be used except for one or more of the
following uses or uses deemed similar by the council:
1. Conducting a process, fabrication, storage or
manufacturing light materials or wholesaling
operation or providing a service including any of
the following or similar uses meeting the
performance standards applicable to the I-1
district.
2. Automobile painting, upholstering, tire recapping,
and major repair when conducted completely in an
enclosed building.
3. Ice, cold storage plants, bottling works.
4. Offices.
S. Machine and welding shops.
6. Paper products.
7. Tennis club, skating, theater, bowling alley or
similar indoor commercial recreation.
8. Radio and television.
9. Restaurants, class I only.
10. Research laboratories.
11. Trade school.
12. Warehousing and wholesaling and related sales or
showrooms.
13. Reserved.
14. Armories or convention hall.
15. Animal hospital or clinic (with no outside
kennel) .
16. Amusement devices, not to exceed three machines at
one licensed location, and which shall not be
located within 200 feet of another licensed
location. For this purpose the outside wall of
each licensed location shall be used in the
measurement of the distance between locations.
B. Performance standards. Applicants for building permits
in the I-1 district shall submit such evidences as may
be required by the chief building official to assure
compliance with the performance standards and the
intent and purpose of the limited industrial district
(I-1) Should the chief building official have any doubt
as to the ability of any proposed use to meet the
required standards, the matter shall be referred to the
planning commission, which shall make a recommendation
to the council to grant or deny the application.
C. Conditional uses. Within the I -I district, no structure
or land shall be used for the following uses or uses
deemed similar by the council except through the
granting of a conditional use permit:
2- Reserved.,
2. Truck and freight terminals.
3. Contractors' yards.
4. Explosives, including all activities involving the
storage, utilization or manufacture of materials
or products such as TNT or dynamite which could
decompose by detonation.
5. Subject to section 11.10, subdivision 29, outdoor
storage, and then only conducted by an occupant of
the principal building.
6. Subject to section 11.10, subdivision 29, sales
vards for building materials, and then only
conducted by an occupant of the principal
building.
7. Sales and service for trucks or passenger cars.
8. Rental lots.
9. Dog kennels with outside pens and subject to
section 6.38 of the City Code.
10. Car or truck wash.
11. Truckstops.
12. Motor fuel sales.
13. Amusement devices exceeding three machines at one
licensed location or to be located within 500 feet
of any other licensed location.
14. On -sale wine and 3.2 beer.
15. Subject to section 11.10, subdivision 12.1, off-
street parking and outdoor storage.
/o
A. Description. Limited business districts are areas that are
particularly exposed to residential neighborhoods and
are thus suitable to those businesses compatible with
nearby residential use (offices, clinics and the like).
B. Permitted uses. Within any LB district, no structure or
land shall be used except for one or more of the
following uses, or uses deemed similar by the council:
1. Municipal buildings where the use conducted is
customarily considered to be an office use.
2. Professional offices, banks and savings and loan.
3. Offices of a general nature where the operations
do not include retail sales or warehousing from
the site.
4. Clinics for human care.
5. Institutional uses: library, swimming pools,.
churches, public schools, religious centers,
health centers, and community buildings.
6. Funeral homes and mortuaries.
7. Amusement devices not to exceed three machines at
one licensed location and which shall not be
located within 200 feet of another licensed
location. For this purpose the outside wall of
each licensed location shall be used in the
measurement of the distance between locations.
C. Conditional uses. Within any LB district, no structure
or land shall be used for the following uses or uses
deemed similar by the council except by conditional use
permit:
1. Nursing homes, rest homes, retirement homes or
hospitals for human care, day care centers,
private schools.
2. Art, interior decorating, photographic or music
studio, provided no retail sales are made of
products not manufactured on the site.
3. Radio and television studios.
4. Private clubs and lodges.
5. Historical buildings, museums, art institutions,
galleries and playhouses.
6. Off-street parking when the principal site of the
off-street parking abuts on a lot which is in
another zoning district.
7. On -sale liquor in conjunction with a restaurant
facility.
8. Restaurants --Class I only those granted a permit
according to applicable City Code provisions to
serve 3.2 beer or wine.
9. Reserved.
10. Amusement devices exceeding three machines at one
licensed location or to be located within 200 feet
of any other licensed location.
11. Subject to section 11.10, subdivision 12.1, off-
street parking and outdoor storage.
D. Permitted accessory uses. Within any LB district, the
following uses or uses deemed similar by the council
shall be permitted accessory uses:
1. Private garages, off-street parking and loading
spaces, as regulated by this chapter.
2. Building temporarily located for purposes of
construction on the premises for a period of not
to exceed time necessary to complete said
construction.
3. Public telephone booths provided all yard
requirements are met.
22. BP business park district.
Description. The business park BP district is intended
to accommodate development of low intensity office,
light industrial and supporting commercial service uses
that may be suitable in relative close proximity to
nonindustrial development. More intensive industrial
uses which require outdoor storage and high truck
traffic are excluded. The performance. standards for
this district are intended to establish and maintain
high quality site planning, architecture, signage and
landscape design to create an attractive and unified
development character.
Permitted uses. Within any BP district, no structure or
land shall be used except for one or more of the
following uses or uses deemed similar by the council:
1. Financial institutions and banks (without drive-
through) .
2. Office and office buildings.
3. Office/warehouses and office/showrooms.
4. Processing, packaging, cleaning, storage,
assembling, servicing, repair or testing of
materials, goods or products, when wholly
contained within a building and which meet and
maintain all applicable standards established by
the state.
5.. Public utility uses..
6. Research laboratories, when wholly contained
within a building and which meet and maintain all
applicable standards established by the state.
7. Technical, vocational and business schools.
Conditional uses. Within the BP district, no structure
or land shall be used for the following uses or uses
deemed similar by the council except through the
granting of a conditional use permit:
1. Day care facilities.
13
2. Financial institutions and banks with drive-
through facilities.
3. Health care facilities.
4. Health and fitness clubs.
5. Hotels and motels.
6. Off-street parking and loading as regulated in
section 11.10, subdivision 12.1, herein.
7. Restaurants (class I)..
D. Permitted accessory uses. Within the BP district, the
following uses shall be permitted when incidental to
and clearly subordinate to the permitted principal use:
1. Coffeeshops and cafeterias located within the
principal structure.
2. Garage or similar structure to store vehicles and
equipment.
3. Parking and loading as regulated herein.
4. Retail sales of products manufactured, warehoused
or distributed on the premises where the retail
floor area does not exceed 15 percent of the gross
floor area or 3,000 square feet, whichever is
less, of the building in which the sales area is
located.
/ I
ooccJ
MINUTES OF A SPECIAL MEETING OF THE
EAGAN CiTY COUNCIL
Eagan, Minnesota
March 4,1997
A special City Council meeting was held on Tuesday, March 4, 1997, at 5:00 p.m. in the lunchroom
f the Eagan Municipal Center Building. Present were Mayor Egan and City Councilmembers Blomquist and
Vachter; City Councilmember Masin arrived at approximately 5.25 p.m. City Councilmember Awada was absent due
the birth of her second child on Monday, March 3. Also present were Director of Parks & Recreation Was,
iirector of Finance VanOverbeke and City Administrator Hedges.
MIGHTY DUCKS GRANT CONSIDERATIONISECOND SHEET OF ICE
City Administrator Hedges provided a brief background summary on a request by the Eagan
ockey Association to pursue a Mighty Ducks grant In the amount of $250,000 to help finance the construction of a
econd sheet of lice. He stated that the Hockey Association provided a donation to the City in the amount of $7,500
hire ACC Arch:lects to prepare preliminary designs for a second ice sheet. In the fall of 1996. the City Council
roceeded with a resolutoon to pursue the grant award. He stated that in November of 1996, the City was notified of
grant award in the amount of $125,000, which is half of the amount requested. He stated that the question before
ie City Council is whether the City should request the additional $125,000, if additional Mighty Ducks funding is
Dproved in this legislative session.
Mr. Bill Osbum, representing the Eagan Hockey Association, appeared and stated that there are
ler 600 kids in the hockey program at this time. He stated that with the growing interest and recent success in the
gals' hockey program, the number of young girls entering the program is rapidly increasing.
Mayor Egan asked various questions about the financial data that was presented in memos by the
City Administrator and Director of Parks & Recreation. Director of Parks & Recreation Vrea explained that
Springsted prepared the various scenarios that were presented as A: B, C and D. Director of Finance VanOverbeke
explained each of the four options. He stated that Scenario B provides the most capital. He also stated that
Scenarios A and B are funded internally and do not require a debt reserve. VanOverbeke further stated that the
main difference between A and B is a $100.000 bond issuance cost and the term varies from 20 to 25 years. He
further stated that the expected Iffe for a capital project when considering a debt service schedule is generally 20
years.
Mayor Egan further asked if the second sheet of ice will cash flow. Director of Parks & Recreation
Vraa stated that the second facility will generate an estimated $126,000 in proceeds over the operating cost based
on current ice usage projections from the Eagan Hockey Association and from discussions with Eagan High School.
City Councilmember Wachter asked If the Eagan hockey program, with 600 youth as previously
stated, appears to have reached capacity or the saturation point for interest in hockey. Mr. Osbum stated that
indications are that the City of Eagan's program has not reached saturation and it is expected to continue growing in
the next few years. Mary Pontrelli, also representing the Eagan Hockey Association, stated that currently the Eagan
Hockey Association will not take the very young skaters because there is no ice availability. City Counciimember
Wachter asked if these kids are going outside the community for ice. He further asked about the use of the buildings
In the summer. Mrs. Pontrelli stated that there is considerable ice time purchased by the Hockey Association
throughout the metro area, and as far as Faribault, Minnesota. She further stated that in Woodbury, the ice facility is
rented on weekends for lock -ins, which has provided an additional use for the facility. City Councilmember Wachter
asked about in-line skating and if that is a possible use for the civic arena. Director of Parks & Recreation Vraa
stated that in-line skating could be a use in the second facility. Mayor Egan stated that it appears any dry court use
in the winter will conflict with ice time. Director of Parks & Recreation Was stated that dry court will conflict with ice
during the months of February and March. Mayor Egan further stated that initially the City Council discussed an
eight week program for soccer in the spring. Director of Parks & Recreation Vraa stated that the Soccer Association
has been approached; however, to date there has not been an Interest to provide the furnishings necessary for
conducting a program in the facility and the apparent desire for soccer to begin in February, conflicting with ice
usage. City Counclmember Wachter stated that he would like well-rounded programs in the. facility and on the
condition that there are no public tax dollars required for construction or operation of the facility, he could support the
second sheet of ice.
/,5"
0`006
Page 2/Eagan Special City Council Meeting Minutes
March 4, 1997
Mayor Egan stated that it is important to discuss possible barriers. He asked if a second rink
proposed at 85 feet instead of 100 feet would be a problem and further, are ice sheets becoming oversaturated in
other communities? Director of Parks & Recreation Vraa stated that the second sheet of ice does not need to be
Olympic size which is the dimension in the civic arena. He further stated that the department is reviewing the status
of rink plans in neighboring communities and feels that the demand projected by the Eagan Hockey Association will
provide numbers for prime time use of a second sheet of ice. Mr. Osbum stated that the girls' program is expanding
and there should not be a problem with ice time. Mayor Egan expressed his excitement with the success of the
Eagan High School Girls Hockey team and his recent conversations with Northwest Airlines and West Publishing for
their financial support in making the civic arena possible.
Director of Parks & Recreation Vraa stated that there is a softening of ice time in the 'shoulder
season,' the time between seasons and off-season when groups are shopping around for ice time. City
Councilmember Masin asked if there is much interest in men and women's adult leagues. Director of Parks &
Recreation Vraa stated it is happening, but the arena is new enough that leagues are not as strong as they will be in
the future.
Mayor Egan asked specific questions about who would lease the equipment for the building as
explained in the proposed financing plan. Bill Osbum stated that a vendor will lease the equipment. He further
stated, it would be more fiscally prudent if the City financed without a vendor to save the cost of a third party which
should be strongly considered by the City Council. City Councilmember Blomquist asked if there is legislation
supporting a sales tax savings as proposed in the financing plan. Director of Parks & Recreation Was stated that
this legislation did pass and the sales tax reduction will be a savings to the project.
City Administrator Hedges summarized the policy issue, stating that the City is seeking direction
on the issue of whether to seek additional funds from a proposed third round of Mighty Ducks grant money and
subsequent construction of a second ice sheet. Mayor Egan asked the City Council for direction. " After further
deliberation and in a motion by City Councilmember Wachter, seconded by City Councilmember Masin, with Mayor
Egan, City Councilmember Masin and City Councilmember Wachter voting aye, and City Councilmember Blomquist
voting nay, direction was given to staff to proceed with the Mighty Ducks funding request for the additional $125,000,
bringing the total grant award to $250,000 for the second ice sheet.
Mr. Osbum, on behalf of several members of the Eagan Hockey Association who were present at
the meeting, thanked the City Council for their support in proceeding ahead with the grant application.
OTHER BUSINESS
There being no further business, the meeting was adjourned into executive session at
approximately 6:10 p.m.
March 4, 1997
Date
16
(� I Kli.. o
t�
City Clerk
TLH
City of eagan
TO: TOM HEDGES, CITY ADMINISTRATOR
FROM: [CEN NRAA, DIRECTOR OF PARKS AND RECREATION
DATE: FEBRUARY 18, 1997
RE: SECOND ICE SHEET - MIGHTY DUCKS GRANT
PURPOSE
This memo has been prepared for the purpose of discussion by the City Council and for direction
on how to proceed with a second Ice sheet at the Civic Arena.
ISSUE:
The City has received notification of grant approval in the amount of $125,000 from the "Mighty
Ducks" State Bonding bill. The Ory had sought $250,000. Staff h seeking direction on the issue
of whether to seek additional funds from a proposed third round of Mighty Ducks Grant money
and subsequent construction of a second ice sheet.
BACKGROUND/HISTORY
During calendar year 1996, the Eagan Hockey Association approached the Council In regards to
the construction of a second building to be attached to the existing Civic Arena. The funding for
the arena expansion was to come from a successful Mighty Ducks grant expected to provide
$250,000, Revenue Bonds to be paid back through arena income expected to generate between
$1.2 - 1.4 million in construction funds, and a contribution from the hockey association.
With an immediate donation of $7,500 from the hockey association to pay for preliminary
architectural costs, the Council authorized the preparation of a preliminary design for a second Ice
sheet. The Council will recall there were two meetings with the architect, A.C.C., and a preferred
plan was designated. A preliminary cost estimate was completed based on this design and adjusted
to reflect 1997 construction costs. A contingency of $90,000 was also included. A copy of
that estimate Is attached.
At the Oct 1, 1996 Council meeting, the Council approved a resolution authorizing the
submission of a grant application to the Minnesota Amateur Sports Commission (MASC) via the
State Capitol Bonding fund seeking the grant maximum of $250,000.
In late November of 1996, MASC released information to the public that Eagan was to receive,
along with six other communities in the Sixth Congressional District, $125,000 In grant funds.
On January 23,1997 staff went to a Grant Recipients Workshop sponsored by MASC and the
State Attorney Generals office to formally receive draft documents and direction for completion of
the necessary forms and agreements in order to obtain the grant funds. Two additional signlficant
pieces of information were also teamed. First, In addition to the grant funds, the State had agreed
to waive the collection of sales tax on the purchase of materials used in the conmcdon of the
project MASC staff predicted that this would save owners upwards of $75,000 to $80,000
dollars . A more conservative estimate for Eagan's project is $60,000. Second, Representative
MllbeM who authored past Mighty Ducks legislation, stated that another round of Might Ducks
would be introduced this session and was likely to succeed. In that case, the six communities In
DWct Six (MASC reviewed grants and made awards by State Legislative Districts) who received
only $125,000 would be considered for and would likely receive the remaining $125,000 in
order to receive the entire amount previously applied for. The Council would have to authorize
resubmission of the original grant to be considered for this next round of grant money.
SECOND OPINION ON CONSTRUCTION COSTS
Because the estimated cost of the second ice sheet was higher then was first anticipated and to
provide more then just one opinion, staff asked the bidder from Lund Martin Construction, who
built the existing Eagan Civic Arena to provide the City with a review of the A.C.C. estimate.
The firm also constructed the Inver Grove Heights and Ory of Champlin facilities since the Eagan
project. This Individual indicated that the estimate might be somewhat high, but would, in his
opinion give the City a goad levet of comfort and margin to bid the project.
DEMAND FOR HOURS
Demand for ice time in the "highly marketable" houm/season remains strong. This is the time
period between late September and mid-March. The Eagan Hockey Association purchased
approximately 750 hours at the Civic Arena during this period and about 600 hours at other
arenas In the metro area during the same time period. The association still was not able to get all
of the hours desired. A second ice sheet would provide about 1,050 hours of additional "prime
dme" during the late September to mid-March time period. This does not include additional hours
prior to 5:00pm, some of which might be purchased by Eagan High School or other high schools
looking for additional Ice time. Nor does this include hours that could be purchased by opening
eariler than late September and dosing later. In addition to serving the local need for increased
hours of Ice time.. expansion of other programs could also be accommodated.
FUNDING ALTERNATIVES_ -.-
PART 1
The funding of a second ice sheet could have three distinct components. Assuming the second half
of the Mighty Ducks State funds is approved, the City would have $250,000 available. These
funds are awarded at project completion. in addition, the safes tax exemption would reduce the
project cost by $50,000 to $60,000. The Mighty Ducks money might be identified as Part I of a
three part package.
FART 11
This component Is that which Is based on the expemd net revenue production of the combined
two sheet facility. -
2
An estimate of additional revenues and expenses associated with the operation of a second ice
sheet was prepared. This work sheet reflects that the 2nd facility would generate an estimated
$126,000 in proceeds over the operating costs based on current ice usage by the local association
at facilities other then Eagan and the needs of Eagan High School. These proceeds could be used
to pay the principle and Interest on a revenue bond. The estimate of revenues does not take into
consideration any potential dry floor events(thought to be minimal) nor does it include the
potential for extending the season. It h also based on an hourly rate of $125. (Staff is expecting
to recommend later this spring an increase to $ 130 per hour on selected prime time ice. Burnsville
and Apple Valley have already announced this rate for the 1997-98 season.)
The following chart reflects what the net proceeds from the second building could support with a
revenue bond under different options.
Column A reflects a 20 year bond and column B a 25 year bond with an internally funded reserve. Column C
and D reflect a bond funded reserve, again with 20 and 25 year pay backs. * Required reserve Is funded
Internally interest free. Investment earnings on the reserve are applied to reduce debit service. NOTE: This
was prepared from infonrnadon supplied by Springsted Inc. dated Oa.24, 1996 and assumes an Inue date of
4/1/97 with the first Intent payment 4/1/98.
PART III
The third component of the funding package is proposed to come from the Eagan Hockey
Association in the form of a "lease". The EHA would lease some of the equipment for the
building. This might Include the dasher boards and glass, the compressors and other miscellaneous
components of the building. The lease could be placed through a private lender or through the
Oty. The net effect would be to spread out their payments over a ten year period. The EHA
Board has gone on record as being willing to commit up to $30,000 a year.
Combined, the three funding components approximate the cost of a new facility.
MQNS
Part it of the funding component has some options for consideration which would provide
/9
A*
B*
C
D
Bond Issue
1,415,000
1,515,000
1,415,000
1,515,000
Issuance costs
(21,220)
(21,220)
(24,970)
(23,765)
Underwriters discount
(25,470)
(27,270)
(25,470)
(27,270)
Capitalize Interest
(64,088)
(72,855)
(64,088)
(72,855)
Debit Reserve
0
0
(141,500)
(151,500)
Net Proceeds
1,305,000
1,394,000
1,163,000
1,242,000
Total Interest
1,188,000
1,734,000
1,188,000
1,734,000
Tenn
20years
25years
20years
25years
Average Annual
Debit Service
118,000
117,000
118,000
117,000
Column A reflects a 20 year bond and column B a 25 year bond with an internally funded reserve. Column C
and D reflect a bond funded reserve, again with 20 and 25 year pay backs. * Required reserve Is funded
Internally interest free. Investment earnings on the reserve are applied to reduce debit service. NOTE: This
was prepared from infonrnadon supplied by Springsted Inc. dated Oa.24, 1996 and assumes an Inue date of
4/1/97 with the first Intent payment 4/1/98.
PART III
The third component of the funding package is proposed to come from the Eagan Hockey
Association in the form of a "lease". The EHA would lease some of the equipment for the
building. This might Include the dasher boards and glass, the compressors and other miscellaneous
components of the building. The lease could be placed through a private lender or through the
Oty. The net effect would be to spread out their payments over a ten year period. The EHA
Board has gone on record as being willing to commit up to $30,000 a year.
Combined, the three funding components approximate the cost of a new facility.
MQNS
Part it of the funding component has some options for consideration which would provide
/9
Increased funds without substantially Increasing the risk to the City. This would Include Internally
funding the second building thereby eliminating the bond Issuance and underwriting discount. This
-would save approximately $56,000 as shown In column A. -The Civic Arena Enterprise Fund
would then make payments of principal and Interest to the City annually to retire the debt. If both
of these assumptions were to be considered, there would be $1,600,000 available, which includes
the Mighty Ducks proceeds at full amount. This option makes the City a "conduit" for the
funding but Is different than the original Civic Arena project In which the Citylei Invest funds.
The ENA would have to make up the difference between the arnount available and the projected
construction budget of $2.1 mAllon.
Mother option would be to consider bond payout of 25 years vs 20 years. This would generate
an additional $89,000 in construction proceeds, but Increase total payments of principal and
Interest from $2,602,000 to $3,249,000. This assumes placement of the bonds externally.
OTHER USESAONG TERM PERSPECTIVE
What is the potential for the facility to be used for something other then ice or the continuation of
high usage and demand for ice beyond the present
It's likely that the second facility could be used for other events. Soccer players would require
flooring material to make it suitable for their use (about $50,000) and they would want to be in
such a facility earlier In the year; perhaps February 1. This generally conflicts with programmed
Ice usage. Other recreational uses include baseball and softball; both have made proposals to use
the existing upstairs mezzanine at the civic arena for practice. The potential for other dry floor
events remains, but as we have learned with the civic arena, there is a limited market In the
summer for dry floor activities.
The near term need and demand for Ice Is expected to continue to grow. The new Eastvlew High
School Is likely to spin off another hockey association. And, with a portion of Eagan included In
this school's attendance area, it very likely there will be a request for Ice time from this group.
Giris hockey Is just beginning to grow. The success that Eagan High School girls have had, In
particular Natalie Darwitz , Is likely to add continued Interest In the program. Certainly, Eagan's
youthful demographics would lead one to believe that the continued and growing need for Ice is
Ilkely to get stronger In the years ahead. if the history and experience of other communities Is
repeated in Eagan, we can expect a near doubling of Ice demand during the next five to seven
years.
The Civic Arena's Learn to Skate program is just now beginning to grow. This spring saw the
Introduction of Monday night classes along with the traditional Saturday and Wednesday classes.
Given time, Its very possible that this growing program could develop Into a Junior figure skating
dub or a full dub.
COUNCIL DIRECTION
This memo was generated to Initiate discussion by the Council on the issue of a 2nd facility.
If it Is the consensus of the Council to proceed ahead, the Council should direct staff to Issue a
fetter to MASC to resubmk its application for additional Mighty Ducks Grant money. Alternatives
4
;a.
on funding a portion of the construction from generated revenues should also be determined. The
Council may also want to consider additional work to be done on advancing the construction
documents. (The Council may recall that the issue of additional parking was left unresolved.)
If it b the consensus of the Council not to proceed, it would be appropriate for the Council to
direct staff to prepare a formal communication to MASC to withdraw from the Mighty Ducks
Grant program.
5
0a
CONSTRUCTION BUDGET
A.C.0 has, based on the proposed design scheme, projected a budget for the facility
- assuming a January 1997 bid dam. This budget also provides for all design, engin-eering and
testing costs as
lbudget,asa%contingency. The contingency at 556
h standard at this stage of
design work. The proposed follows.
Earthwork S
36,600
-Site Utilities-seweAwater
16,500
Parking40,000
Precast Concrete a Plank
257,000
Poured in place concrete-footing\siub
215,000
e Masonry wails
Beams or Untels;indudes mist, steel, -
241200
Ice melt plc, overhead door jam
Long span steel joist
174,600
Carpentry
291800
Roofing
106,000
Caulking
5,4130
Metal Door -Frames Hardware
22,000
Entrance
27,800
Overhead Door -Ice Resurfacer(elect ical)
4,800
Palndng
29j600
Toilets at Partition
$1600
Protective Flooring
34,000
Dasher Boards -Netting aGlass
112,000
Refrigeration System
316,00+
Plumbing, H.V.AC; Dehumidification
1921000
Fire Protection
34,200
Electrical
132,0001
Sub Total
General Conditions 5%
Construction Management 3.5%
Design -Arc *ecture-Englneering 6.25%
Reimbursables
Sub Total4nduding Fees
Sac a State Charges -Budding Permit
Contingency -556
TOTAL
90,900
63,600.
113,600
<. 3,000
9,950
190,900
May 30, 1997
Dear
I would like to extend an invitation to you to attend the second collaborative meeting with
the Eagan City Council to share and discuss ideas regarding various legislative topics and
issues relating to the community. The meeting will be hosted by the City of Eagan on
June 24, 1997 at 7:30 p.m. in the Community Room at the Municipal Center Building.
Invitations are being extended to include our legislative delegation, county
commissioners, Metropolitan Council representative, area school district superintendents
and board members, members of the Ministerium and others.
There is not a specific agenda set for the meeting at this time; however, feel free to
address any topics of interest to you that evening.
Please R.S.V.P. to Maria Karels in the Administration Office at 681-4613. We look
forward to your attendance and continued communication.
Sincerely,
Thomas Egan
Mayor
c2 3
State Representative Tim Commers State Representative Tim Pawlentt=
Collaborative Meeting 6/24/97 217 State Office Building 231 State Office Building
created 5/29/97 St. Paul, MN 55155 St. Paul, MN 55155
Lists/ collaborative labels
State Senator Deanna Wiener Mr. Kevin Howe Patrice Bataglia
303 Capitol Metropolitan Council Rep. Dakota County Commisioner
St. Paul, MIST 55155 1763 Lansford Lane Dakota County Govt. Center
Mendota Heights, MN 55118 1590 West Highway 55
Hastings, MN 55033
James Mueller Ms. Sherie Wallace, Chair Ms. Jennifer Hearon, President
Dakota County Commissioner Eagan Chamber of Commerce Northern Dakota Count}
Dakota County Govt. Center 3138-B Farnum Drive Chamber of Commerce
1590 West Highway 55 Eagan, MN 55121 1474 Yankee Doodle Road
Hastings, MN 55033 Eagan, MN 55121
Congressman Bill Luther Superintendent John T. Haro Mr. Kevin Sampers
1811 Weir Drive, Suite 150 Independent School Dist. #196 849 Curry Trail
Woodbury, MN 55125 14445 Diamond Path Eagan, MN 55123
Rosemount, MN 55068
Ms. Jude Lindsay Mr. Bruce Endler Mr. Mike Roseen
4041 1541h Court West 13828 Currant Circle 879 Redwood Drive
Rosemount, MN 55068 Rosemount, MN 55068 Apple Valley, MN 55124
Ms. Mary Hamann -Roland Ms. Jackie Magnuson Mr. Gene VanOverbeke
1069 Baldwin Circle 347213151 Street West 4295 Lodgepole Drive
Apple Valley, MN 55124 Rosemount, MN 55068 Eagan, MN 55122
Superintendent Robert Monson Ms. Janice Chasman Mr. Gare' Hagstrom
Independent School Dist. #197 723 Evergreen Knolls 2449 Pond Circle West
1897 Delaware Avenue Mendota Heights, MN 55118 Mendota Heights, MN 551120
West St. Paul, MN 55118
ay
Mr. David Jackson Ms. Linda Kjerland Mr. Thomas Weisbecker
279 Betty Lane 1338 Cherokee Avenue 1862 Walsh Lane
West St. Paul, MN 55118 West St. Paul, MN 55118 Mendota Heights, MN 55118
Mr. Steven Anderson Supt. Dr. James Rickabaugh Shari Prest
1328 MacArthur Independent School Dist. #191 2305 W. Burnsville Parkway
West St. Paul, MN 55118 100 River Ridge Court Burnsville, MN 55337
Burnsville, MN 55337
Vicki Roy Frances Potts Bruce Copp
12736 Portland Circle 900 Thoreau Drive 12816 Welcome Lane
Burnsville, MN 55337 Burnsville, MN 55337 Burnsville, MN 55337
John Coskran Jevne Kloeber Debra Pilton
11316 Raleigh Ct. 8735 Highwood Way 3400 W. 134th Street
Burnsville, MN 55337 Apple Valley, MN 55124 Burnsville, MN 55337
Sue Gehrz Tim Staley Don Gudmundson
2285 Folwell Avenue Southwest YMCA Dakota County Sheriff
Falcon Heights, MN 55108 550 Opperman Drive 1580 West Highway 55
Eagan, MN 55123 Hastings, MN 55033
David Rooney, Director
James Backstrom Max Saucedo
Community Services Division
Dakota County Attorney 146 Westchester Drive
33 East Wentworth Avenue
Dakota County Govt. Center West St. Paul, MN 55118
West St. Paul, MN 55118
1590 West Highway 55
Hastings, MN 55033
Jim Nikolai
1627 Blackhawk Lake Drive
Eagan, MN 55122
Randy Cirksena
2047 Coral Lane
Eagan, MN 55191
Local Churches - Mailing Labels Mary Mother of the Church Advent United Methodist Church
(from Eagan phone directory, Rev. James C. Zappa, Jr. Pastor Frederick Sauer
created on 9-24-96) 3333 Cliff Road 3945 Lexington Avenue South
holzfarm/churches.lbl Burnsville, MN 55337 Eagan, MN 55123
All Saints Lutheran Church Aspen Hills Community Church Beautiful Savior Lutheran Church
Pastor Larry Smith Pastor Bruce Konold Pastor David Koeplin
3810 Lexington Avenue South 1080 Lone Oak Road 4150 Pilot Knob Road
Eagan, MN 55123 Eagan, MN 55121 Eagan, MN 55123
Cedar Ridge Church
Chapel Hill Church Christ Lutheran Church
Pastor Bob Buchanan
Pastor John Peterson 1930 Diffley Road
2024 Rahn Way
4888 Pilot Knob Road Eagan, MN 55122
Eagan, MN 55122
Eagan, MN 55123
Community of Joy Lutheran Cross of Chirst Community Church Eagan Alliance Church
Brethren Pastor Richard Breu Pastor Dave Stapf
4015 Northview Terrace 1985 Diffley Road 700 Diffley Road
Eagan, MN 55123 Eagan, MN 55122 Eagan, MN 55123
Eagan Evangelical Covenant Easter Lutheran Church Faith Church of Glory
Church Pastor James Borgschatz Pastor John Zimmermann
Pastor Carleton Peterson 4200 Pilot Knob Road 3588 Kennebec Drive
4100 Lexington Way Eagan, MN 55123 Eagan, MN 55122
Eagan, MN 55123
Living Word Lutheran Church Mount Calvary Lutheran Church Oak Hills Church
Pastor Alvin Pinno 3930 Rahn Road Pastor Rod Carlson
4300 Nicols Road Eagan, MN 55122 3440 Federal Drive
Eagan, MN 55122 Eagan, MN 55122
Peace Reformed Church Praise Lutheran Church St. John Neumann Catholic Church
2180 Glory Drive Pastor Mark Tewes 4030 Pilot Knob Road
Eagan, MN 55122 670 Diffley Road Eagan, MN 55123
Eagan, MN 55123
St. Thomas Becket Church SS Martha & Mary Episcopal Trinity Lone Oak Lutheran Church
4455 South Robert Trail Church 2950 Highway 55
Eagan, MN 55123 4180 Lexington Avenue South Eagan, MN 55121
Eagan, MN 55123
Woodcrest Church
Pastor Jerry Schommer
3440 Federal Drive, Suite 250
Eagan, MN 55122
St. Peter's Catholic Church
Rev. Kevin Clinton
1405 Highway 13
Mendota, MN 55150
07