10/21/1997 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
October 21, 1997
5:00 p.m.
Municipal Center Community Room
h. J� ROLL CALL &ADOPTION OF AGENDA
0 II. VISITORS TO BE HEARD
I
III. PRESENTATION EAGAN CONVENTION & VISITORS BUREAU
* 1997 Research Survey - Eagan Hotel & Lodging Market Outlook
♦ 1997/98 Marketing Plan/Budget & 1996/97 Annual Report
0 IV.. DISCUSSION RE: INTERIM ORDINANCE/
CELLULAR TOWER STUDY
V. OTHER BUSINESS
C,
J
VI. ADJOURNMENT
C�
f
TO:
FROM:
DATE:
city of eagan
HONORABLE MAYOR & CITY COUNCILMEMBERS
CITY ADMINISTRATOR HEDGES
OCTOBER 17,1997
SUBJECT: SPECIAL CITY COUNCIL MEETING/OCTOBER 21,1997
MEMO
A Special City Council meeting is scheduled for Tuesday, October 21, 1997 at 5:00 p.m. in
the Community Room of the Municipal Center building. The purpose of the meeting is to
hear a presentation by the Eagan Convention and Visitors Bureau and review information
prepared by staff regarding the location of cellular towers that was directed by adoption of
an interim ordinance at the September 2, 1997 City Council meeting.
Presentation/Ea ;an Convention & Visitors Bureau
Ann Carlon, Executive Director for the ECVB, and members of the ECVB Board of
Directors have requested time at a City Council work session to present a study that was
conducted by Compass, an international research and information services business located
in Eagan, about the hotel and lodging market outlook in the Eagan community. The report
provides an overview of demand growth by sector and facility type. For a copy of a memo
from the ECVB Board of Directors and a copy of the report, refer to pages " through
The market outlook section details the future of the lodging industry in Eagan by
m 'ng three important considerations: 1) the forecast indicates that Eagan could
reasonably expect demand for approximately 38-40 new hotel rooms per year over the next
5 years without significantly affecting the current healthy occupancy rate; 2) the findings
also indicate that the hotel and lodging industry in Eagan can best be served if most of those
rooms are added in the full-service and budget categories; and 3) continued expansion of the
extended stay category does not appear to be a healthy direction at the current time.
Also enclosed for City Council review is a copy of the Eagan Convention & Visitors Bureau
1997/1998 marketing plan, which in essence is a budget forecast, including both estimated
expenses and estimated income for calendar year 1998. That document is enclosed on pages
through
Historically, the ECVB has presented its budget under Department Head Business at a
regular City Council meeting. This year due to the study that was authorized by the Board,
it was felt that additional time should be spent at a work session to allow for a presentation
and general discussion with the ECVB Executive Director and Board members present
regarding the special study conducted by Compass and the overall direction of the Board
that is specifically addressed in the marketing plan.
DIRECTION: To receive the information provided by the ECVB Board of Directors and
provide any recommendations. The marketing plan'1998 operating budget is scheduled as
an agenda item under Department Head Business for the regular City Council meeting.
According to the by-laws, the budget requires adoption by the City Council for each
calendar year.
Interim Ordinance/Cellular Tower Study
Following the consideration of the AT&T Wireless applications for a cellular tower location
near Cliff Road, east of Pilot Knob Road, the City Council requested that an interim study
be performed. Planning staff prepared background information and presented it to a
workshop of the Planning Commission on October 10. Background information concerning
the Commission's discussions is included in the staff memorandum on pagesj through
You will note that while the APC appears to support increasing tower setbacks, there
remains some difference of opinion on exactly how the issues of setback and height would
interact. The Commission felt it would beneficial for the Council to provide feedback on the
preliminary discussions to shape their future conclusions on the issue.
Attached to the memo are maps showing current communication tower locations throughout
The City and the potential effect of increased setbacks from residential property lines on the
available sites for toyer location. Since tower siting is extremely competitive and specific
from business to business, standards which limit locations to too great an extent without
some alternatives for siting may provoke additional challenges from the industry.
DIRECTION: To receive the information provided by the Advisory Planning Commission
from its work -shop meeting and provide direction for further consideration of the issue.
/S/ Thomas L. Hedges
City Administrator
®r
EA IV
MINNi:s01A
CO3\1 �Y151 RtiBUR! tt
DATE: October 3, 1997 �---
TO: Eagan City Council
FROM: Eagan Convention & Visitors Bureau
RE: 1996-97 Annual Report
1997-98 IViarketing Plan & Budget
1991 .i eseatcl, $uivev - Eagan Motel Cti Lodging Market Ou look
Work session with City Council on October 21, 1997 at 5:00pm
The Eagan Convention & Visitors Bureau is proud to present our fiscal year-end Annual
Report which details our goals and objectives over the past year and a summary of
achievements. Eagan's hospitality industry experienced a $10 million dollar increase over
last year and current estimates are that travel and tourism provided over $74 million
dollars in economic impact. Over 32,000 more rooms were occupied this year compared
to last and with the addition of new hotels, we expect that number to increase in the
future.
Eagan hotels recorded another increase in occupancy rates totaling 79.359,; with the
average daily rate increasing by $3.60 over last year. Compared to the national occupancy
rate, Eagan hotels are 14 points higher. When the Bureau began, the city had 432 rooms;
3147 rooms have since been added, and soon the construction of two new extended stay
properties will be completed giving Eagan a total of 1,034 rooms.
To date, the ECNrB has distributed over 37,000 visitors guides and coupon books to
inquiries made through our 1-900-EAGAN-20 number or through magazine and
newspaper advertisit:g place-ments.
The 1997-98 Marketing Plan and Budget has been approved by our Board of Directors
and the Northern Dakota County Chamber of Commerce Board of Directors. We submit
it to the Eagan City Council for final approval. More dollars will be spent in advertising
during the slow season ( Nov. 15 -May 15) and we are adding two new trade shows in
Chicago and Milwaukee. We also plan to target Church groups, Military reunions, Freight
companies and Winter sports Gtonps. International marketing will be highlighted and we
are increasing the circulation and number of newsletters. The ECVB will develop its own
web site and an additional employee will be hired to assist the sales department. The total
expenditures are estimated at $587,443 with estimated income at $587,500,
};mkcc Doodle Rcru1 •Fagan, hiinnc sofa • ' I -lt;�t l ° (•1 ? i5 �-4184 • F9\ 611- � 2 FT"?
• 1-�Ittl t ;G,1!y 20
3
LkA I NN
N-11NNES 1A
coa►cv�llo�s ��L=tttR�• Hr>zr:u
'Members of the ECVA Board o rrec ors plan to meet with the City Council nn Tuesday,
October 21. 1997 at 5-00pm at City Hall to discuss our Research surrey recently
completed by Compass Systems. This over. iew of demand growth in the hotel and
lodeina market details the current mix of hotels in Eagan and what is needed to ensure
economic prosperity for current property- o% vers and incoming hotel de.: elopments
The Market Outlook section details the future of the lodging industry in Fagan and says.
-Generalh•, this forecast would indicate that Eagan could reasonably expect demand for
approximateiv 31,;-4O neve hotel rooms per ytmj ov'el Lhe nevi of „_ years `•ii,,.iJL
significantly of e-I ing the current healthy occupancy rate. But more imps wand'k_ it
appears that the health of the hotel and ledging industry in Eagan can best be served if
most of these roorns are added in the full-service and budget categories. Continued
expansion of the extended stay category does not appear to be a healthy direction at the
current time.""
While it is beyond the scope of city responsibilities to dictate the qTc of development
which is allowed in any given market, it is also clear that prudent planning vvill be required
to assure the critically important viability of the Eagan lodging industry An unhealthy
lodging industry can become a serious problem for a community in attracting the wrong
kind of travelers and undermining the attractiveness of the community for firrther private
investment. "It appears that Eagan currently has a strong and "ell-balanced lodging
industry but is in danger of becoming over developed and over-capacity in the budget
portions of the market "
The ECVB Board of Directors would like to meet vyith the City Council to discuss the
research and provide up-to-date information about the hospitality industry. We look
fonvard to meeting with you. If you have any questions, please call Ann Carlon at 452-
y5;1,21.
11-4 Fankee Doodle Road • Eagan, i\tinnesata • ii"-1Sill • (,1 '{�2 41RF •Fay 612-4;2-9()-fi • 1-RfN1-f:At;�A.lp
PREPARED FOR:
THE EAGAN CONVENTION & VISITORS BUREAU
August 19, 1997
EA GAN
Hotel & Lodging Market Outlook
An Overview of Demand Growth
by
Sector and Facility Type
Compass
International Research & Information Services
1301 Corporate Center Drive
Suite 113
Eagan, Minnesota 55121 U.S.A.
Telephone: 612/454-0144
Fax: 612/454-0760
,_r
Convention and Visitor's Burean
BACKGROUND
Intersected by two interstate highways. adjacent to a major international airport. the Mall of
America and home to numerous corporate organizatio I 5ns, Eagan, Minnesota, has become a destination or
stop -over point for an increasing number of travelers. This number has increased very significantly over the
past ten years and the number of Eagan destinations for travelers has increased at an equal rate. Along with
these changes are a changing composition in terms of traveler type, mix and destination. Compass
International has worked with the Eagan Convention and Visitor's Bureau to develop insights to the way in
which this visitor profile will change in the years to come. During the course of this investigation, we have
reviewed expectations of current destinations for visitors as well as anticipated changes in the motivations
for travelers to Eagan. This investigation should be considered an overview. Budget and schedule
limitations have constrained the depth to which this analysis can be carried. but significant cooperation from
the Eagan hospitality industry, the Eagan Convention ?nd Visitor's Bureau and a numFer of Eagan
corporations and organizations has provided a depth of information and understanding of the factors
affecting the outlook.
The objective of this study is to evaluate the current and future demand for hotel space in the
Eagan area market, inciuding an assessment of market segmentation and optimization of the mix in hotel
type and configuration to meet requirements over the next five years.
METHODOLOGY
The research was carried out t„?e-national staff e%es a rerio.,? of six reeks and
included four stere. including:
• Development of the Baseline Perrpecli%c
• Mai 1,et Survey
• Revie-.+ and Anahsis of FindinEs
• Report of Findings and Conclusions
Development of the Baseline Perspective
The baseline perspective was developed through the use of published information. travel and hotel
data. Important contributions to this effort +'ere made In, the Eagan Coni entire incl Visitor's Bureau as
well as the'Minnesota Department of Tourists and ether associations and or_cni,atiens r_lated to the tra%el
industry. In addition. we conducted an extensive review of published materials us;ntz on-line search of
recent developments in the surrounding area. as well as other areas around the countn-, in similar sro�arth and
development situations During this phase of th:, .cork xe also made infnrmll contact -it;- he trl 2nd Tit:?i'
planners within major ;rational hotel groups, including: 6
Eagan Convention and Visitor's Bureau
• Holiday Inn
• Hilton International WW
• ITT Sheraton
• Marriott
• Radisson
]"wring the course of this work we were able to assemble statistics involving recent history and
current facility capability within the Eaoan market.
Market Survey
Following compilation of our baseline information, we conducted a survey among major sources of
travel and hotel utilization within the Eagan market. These included planners for major attractions, as well
as major Eagan businesses who are identified as significant users of locally -based hotel facilities. In total,
our survey involved 42 contacts with individuals who are responsible for securing hotel rooms and facilities
on behalf of corporations, attractions and other travelers. Thirty-six of these interviews were conducted by
telephone, six were conducted in person. A discussion guide was utilized to confirm and develop
quantitative information but subjective information based on an extended discussion of hotel requirements
and expected future developments was also included as part of these interviews and formed the basis for
much of our analysis.
Review and Analysis of Findings
The information which was compiled during our baseline perspective and market survey work was
combined to provide a reasonable understanding of the current nature of the hotel business in Eaoan, its
current stage of development and expectations for the near-term future. Particularly important to this effort
was appropriate segmentation of current utilization and requirements. Several tools were compiled as a
result of this effort, including:
• geographic analysis of facilities
• Utilization of facilities within Eagan
• Eagan hotel facilities guest matrix
• Capacity trends
• Average daily rate trends
• Hotel traveler profiles
• Identification of current needs and requirements.
Power Systems Research 2 830000
Eagan Convention and Visitor's Bureau
Report of Findings and Conclusions
The enclosed revort includes the results of our investigation and is organized to review the current
situation and future outlook for Eagan's hotel and lodging industry. Major issues addressed within this
report are:
• Current capacity
• Occupancy patterns
• Type of demand
• Sources of hotel utilization
• Facilit- and ser ice needs by major market sectors
• Utilization of hotel facilities for meetings. conventions and conf rcncc{
• The influence of spill-over markets in surrounding communities
• Influence of capacity, occupancy and rates on indusm help
• nhser�ations :with respect to sound poli=ie� for future developments
ON
Convention and. Visitor's Bureau
Current Capacity
Eagan's hotel capacity is currently at approximately 925 rooms. This represents 4% of the
metropolitan area market and the growth in Eagan's capacity has been consistent with that in surrounding
market areas. New hotel capacity development in the metropolitan area has expanded considerably and
similar development is underway in Ewan. Before the end of the year Eagan capacity will increase 26% to
1,200 room nights and by the middle of next year, capacity is expected to be over 1,300 room, a 40%
increase in just over 12 months. When a recently approved Hilton Garden Inn is completed later next year,
capacity will increase by an additional 100 rooms. This rather spectacular growth rate has some important
implications for Eagan's hotel and lodging industry.
Eagan Hotel Needs
Eagan Convention and Visitors Bureau - 1997
PROPERTY PROFILE
HOTELS UNDER CONSTRUCTION
Located on Yankee Doodle Road 120
Located on Lone Oak Road 170
PROPOSED HOTELS
Hilton, Garden Inn 100
Occuoancv Trends
Hotel occupancy in Eagan has beenmowing steadily over the past two years and has been
consistent with occupancy rates throughout the metropolitan and surrounding areas. The average
occupancy rate in Eagan most recently has been approximately 76%. This is compared with a metropolitan
area -wide level which has ranged near 70% over the past two years. Rates traditionally have been highest
along the 1-494 corridor in Bloomington followed closely by the downtown Minneapolis area. St. Paul arid
North and South suburban areas have usually experienced considerably lower occupancy rates, with as
much as a 10% differential. Eagan's occupancy rates have tended to look more like the I-494 strip than the
downtown profiles and this is not surprising given the closely related attractions, including airport,
businesses and the Mall of America.
Phone
9
Meeting
Fitness
Average
Existing Hotels
Nu -;her
Rooms Rest.
Lomnee Facilities
Pool
Center
Trans.
Rates
Rate
tlamptan Inn, Eagan
688-3343
122.
<40
Y
Y
S75-150
S69.47
Holiday Inn Express, Eagan
681-9266
120
<60
Y
Y
Y
S69-129
S73.41
Holiday Select, Eagan
454-3434
197 Y
Y <150
Y
Y
Y'
S79-130
576.36
The Residence Inn, Eagan (Marriott)
688-0363
120
<50
Y
581-157
583.43
Yankee Square Inn, Eagan (Best western)
452-0100
108
<150
Y
Y
Y
S68-105
558.93
Courtyard by Marriott
452-2070
146 Y
Y <40
Y
Y
Y
S69-109
NA
Fairfield Suites
686-0600
105
<14
Y
Y
Y
565.48
Budget Hart Inn
454-1211
17
S35-60
NA
Total
925
HOTELS UNDER CONSTRUCTION
Located on Yankee Doodle Road 120
Located on Lone Oak Road 170
PROPOSED HOTELS
Hilton, Garden Inn 100
Occuoancv Trends
Hotel occupancy in Eagan has beenmowing steadily over the past two years and has been
consistent with occupancy rates throughout the metropolitan and surrounding areas. The average
occupancy rate in Eagan most recently has been approximately 76%. This is compared with a metropolitan
area -wide level which has ranged near 70% over the past two years. Rates traditionally have been highest
along the 1-494 corridor in Bloomington followed closely by the downtown Minneapolis area. St. Paul arid
North and South suburban areas have usually experienced considerably lower occupancy rates, with as
much as a 10% differential. Eagan's occupancy rates have tended to look more like the I-494 strip than the
downtown profiles and this is not surprising given the closely related attractions, including airport,
businesses and the Mall of America.
Eaean Convention and Visitor's Bureau
ncctirancv rates also tend to vary. facility tyre Typicall, in the T% -,in C hies area
full-service h�7te!5 tend to eniox the most c�,nsi5ten ir:j highest occupancy rates. Limited ser:i:e hotels not
including restaurant facilities seem to have the most inconsistent rates. Twin Pities trends and trends
reflected in the Eagan market as well indicate that smaller hotels and those with lower averaze daily rates
tend to have lower occupancy rates than larger facilities with higher average daily rates. This has generally
been the case nationwide as well as in the Twin Cities and is also reflected in the Eagan market.
HOTEL ()C(. L PANCY RATES
199-
1996
1995
Twin Cities
69,5^,
69.'
70.5°a
Minneapolis
?0.0")
69.0:
1.0%
Saint Paul
62.0= n
59-51,0
62.5°x0
1-494 Corridor
75
75.500
76.040
North Suburbs
S70-$90
67.5°0
69.0°0
South Suburbs
6 t.5' ^
66.0 0
67.040
Eagan
76.='"^
76.9°0
74,6'0
ncctirancv rates also tend to vary. facility tyre Typicall, in the T% -,in C hies area
full-service h�7te!5 tend to eniox the most c�,nsi5ten ir:j highest occupancy rates. Limited ser:i:e hotels not
including restaurant facilities seem to have the most inconsistent rates. Twin Pities trends and trends
reflected in the Eagan market as well indicate that smaller hotels and those with lower averaze daily rates
tend to have lower occupancy rates than larger facilities with higher average daily rates. This has generally
been the case nationwide as well as in the Twin Cities and is also reflected in the Eagan market.
40000
35or,0
O 30000
a 25000
L
Z 20000
0 15000
a
Cr 10000
5000
0
Eagan Hotel Capacity By Hotel Type
'S Qf T Of Q� T 01 O1 Ol QY 71 Cs T O+ O� T 01 Of Q1 QI T QI Al T
c`a d O Q f0 "CO'> ' 7 N u Z ❑ d N 7 Q 9 U O d
-� U- 2 g Q cn O Q 2 ' L, = O
Elr-, ium
■ Budget
PoNver Svstems Research at 830000
/0
OCCUP XtiCY RATES
Twin Cities
Eagan
By Facility Type
Full Service
68.5%
812^'0
Limited Service
b9•5%
6Q2%,
All Suite
74.00,16
7-15�:Q
By Average Rate
X570
69.00,'°
6`' Sq,O
S70-$90
69.5°'°
7S.9' o
S90+
1.0%
NIA
40000
35or,0
O 30000
a 25000
L
Z 20000
0 15000
a
Cr 10000
5000
0
Eagan Hotel Capacity By Hotel Type
'S Qf T Of Q� T 01 O1 Ol QY 71 Cs T O+ O� T 01 Of Q1 QI T QI Al T
c`a d O Q f0 "CO'> ' 7 N u Z ❑ d N 7 Q 9 U O d
-� U- 2 g Q cn O Q 2 ' L, = O
Elr-, ium
■ Budget
PoNver Svstems Research at 830000
/0
Eagan Convention and Visitor's Bureau
Type of Demand
Not surprisingly, the Mall of America has had a significant effect on demand for hotel space in
Eagan. All Eagan properties report some significant impact from the Mall of America. But the single
largest source of hotel business is derived through corporate travelers. Corporate travelers typically are
destined for Eagan businesses or businesses in closely surrounding areas. Local corporations attracted 380'0
of the room nights booked by Eagan hotels and lodging facilities thus far in 1997. Corporations in other
parts of the metro area were the source of 13% of travelers. It is clear that business travelers are a very
important and critical component to the Eagan market. For several Eagan properties, the Mall of America is
the single largest attraction draxving visitors to their facility. Location appears to drive the effect of the
Mall. The Holiday Inn Select is clearly benefiting significantly from the Mall.
Engnn Uolel Nceds
Enonn Convenlinn & Visitors Durenu - 1997
Respoudenf3r IIatel Loenliou Mnp
Eagan Hotel Residents by Attraction 199"
Activitv Prefile
LOc21
Greater
Hotel
NIA!I
Airport Cotporation
Skarn corp.
Crinferenee
Sports
01her
Hampton Inn, Eagan
- 27"6
516 :s8%
10%
3116
12",0
510
Holiday Inn Express, Eagan
17,50"io
11-15% 26.2.5%
1016
3.75%
6.2596
NA
Holiday Select, Eagan
6396
5°6 15d/
5%
101".
296
NA
The Residence Inn, Eagan (Marriott)
5"16
30%
NA
10".
0
NA
Yankee Square Inn, Eagan (Best Western)
i096
201/n 30%
25".6
i%
foil.
Courtyard by Marriott
Fairfield Suites
20%
10% 30%
201a
5%
5"6
54/Q
Budget Host Inn
30'.6
1006 50%
10%
Averaee
28 4
9% 38%
13%
3%
6%
5%
Engnn Uolel Nceds
Enonn Convenlinn & Visitors Durenu - 1997
Respoudenf3r IIatel Loenliou Mnp
n Convention and Visitor's Bureau
Sources of Lodging Demand
The c,irrent basis of hotel and lodging demand in the Eagan area mares it clear that there are
several focal points for this demand upon which the future of the market is hiJil; 'e; � ids-nt.
The Mall of .America currentl, acr- unts for approxitnate!v :8° f 'he rr.f7m
nights booked in Eagan. It is the larges: single source of visitors to the Holida.: lrnn Se'ect
at -to, and Pilot Knob Road and is alta iho most important source for the Holiday inn
Express. While the ;`tall has been a fahulously successfal attraction for the metro area.
the exrectatio•ns for significant changes in Mall traffic over the next fo!ir to five .c^r
would not indicate substantial increases in the number of travelers. In fact. the !Mall :;ill
work very hard over the next several vears to sustain its current leve! of attractiveness.
and .vhi!e there may be expansinn and additional facilities. they probably .tiff r.ot ha' -,e a
sicnificant impact over the period of our fi•.'e-Near forecast. in fact. there :ire a number of
issues which will significantly challenge the Mall of America to retrain as irnpnrtant a
source for Eagan room nights as currently e%perienced. Amend them r= cnr.rinuing
construction of new hotel facilities closer to the Mall in the Bioomir,gt^r ar,°A ar.J The fact
that any economic slowdown is likely to significantly impact ?.lall traffic.
The airport isra source for approximately 9% of room nights booked in Eagan
hotels. Presumably most of these are in -transit travelers and airline employees. While
airport traffic has continued to grow and is an important source of continuing business to
Eagan, historic growth rates in airport traffic have been on the order of 4R o-6% annually.
We will assume that these levels of increases will be sustainable over the five-year
forecast, although again, airport traffic is vulnerable to the state of the economy and there
is more down -side than up -side risk.
Local corporations represent the largest single attraction for visitors to Eagan
hotels and lodging facilities. This is the areainwhich demand could continue to grow
significantly as commercial development in the Eagan area remains strong. It is also the
single sector in which Eagan has a significant competitive advantage over surrounding
communities, assuming that visitors to Eagan corporations will be more interested in
staying nearby in Eagan given equal facilities than traveling a greater distance.
Commercial investment in Eagan at the current time is appreciable and indications
through our survey show that visitors to local corporations can be assumed to crow at 71a-
9% annually and incremental growth through new and expanded corporate demand could
probably add two or three points to this growth rate as well.
Thirteen percent of Eagan hotel visitors are traveling to visit corporations in
the greater metropolitan area. Eagan is well situated to be attractive to visitors to the
eastern and south -metro areas. Strong competition for this market to the immediate west
softens the effectiveness a bit but the strategic location between the airport and the rapidly
growing eastern metropolitan region is an attractive opportunity and should allow this
sector to remain the relatively strong market for Eagan.
ME
Projected Annual Growth
% of Demand Annual Growth
[Mall of'Arnerica Visitors 28% --
Airport Travelers 9%
Local Corporate Visitors 38%
Greater Metro Corporate 130/'0 6°
Conference 8% 3"
Sports 6% ---
Other 5% 20ia
Total 4.6%
Power Systems Research 8 830000
/,3
Annual Corporate Room Nights
Corporate Needs
Full
Limited
All
Avg. Stay
Percent
Percent
Rate
Company
Service
Service
Suites
(In Days)
Weekends
«'eekdays
Per Day
Natco
10000
5
50%
50910
545.00
Natco
10000
13
5046
50910
$45.00
Natco
10000
30
509r"
50%
560.00
Transport America
300
2.5
5%
95910
S70
National Computer
375
1.5
10%
90010
S70
Dart Transport
200
3.5
1040
901:10
S65
Dart Transport
2
120
104'0
90910
S50
Blue Cross
35
3
1%
99%
S90
Blue Cross
30
2
1%
99%
S80
Blue Cross
5
2
14'0
W/O
S95
Alliant
150
2
30%
70%
S65
Alliant
20
12
30%
709
S65
Coca Cola - RO
150
2
0%
1000/0
S120
Coca Cola - RO
75
2
0%
100410
S60
Coca Cola - GO
90
2.5
2%
98%
S79
Coca Cola - GO
10
25
29'o
98%
S79
Best Brands
350
1.5
204o
30%
S89
General Purrip
50
2.5
10%
90%
S89
General Pump
50
2.5
10,110
90%
DK
Koch Refining
300
3
104'0
90410
S90
Koch Refining
200
5
10%
90%
S65
Koch Refining
l00
3
10%
90%
S120
Land O'Lakcs
800
2.5
20%
804'10
S75
Land O'Lakes
200
1.5
20%
80%
S55
Lull Industries
400
3.5
10%
90410
S65
Totals/Average
12125
11200
10567
9
15%
85%
Power Systems Research 8 830000
/,3
Eagan Convention and Visitor's Bureau
TYPE OF FACILITIES REQUIRED BY EAGAN TRAVELERS
Recent history has shown that for Eagan hotels demand for full-service and extended -stay hotels
has been strongest. In interviewing corporate travel administrators in and around Eagan, we have generally
found that the market is broken approximately one-third for premium full-service hotels. one-third for
extended -stay hotels and one-third for limited stay hotels. This usually has a good deal to do with the type
of activity and the type of traveler participating in this segment which is the strongest part of the demand for
hotel and lodging space in Eagan and shows indications of being the strongest growth component as well.
Short-term corporate travelers are generally first directed to the Holiday Inn Select in Eagan, but a number
of respondents reported frequent inability to schedule corporate travelers into the Holiday Inn Select on a
short-term basis. As a result, some have resorted to hotels outside of Eagan. Koch Refining, for example,
currently puts half of its business travelers in the Mall of America Grand Hotel. Lull Industries has a
combination of short-term and extended -stay visitors participating in training and educational sessions and
budget considerations usually direct participants to limited service budget -priced facilities. NAPCO, the
largest corporate user of hotel facilities in Eagan spreads business among nine different facilities within the
Eagan area, depending on length of stay and training budget for the visiting travelers.
Amon, 18 different contacts in the E•aran corporate community, we found Restaurant Facilities.
Proximity to the Host Location, and Airpo-t Trac:-�portation were the three roost frequently mentioned
amenities. Airport Transportation tends to he et more si_nificant factor in Eacmn locations heczuse most
travelers to Eaoalr can connect easily to the airp-)rt without the use of a rental carif the hotel can provide
satisfactory transportation. Several respond:•nt- cr)mmented that in addition to Airport Transportation the
Power Systems Research 9 830000
U
v
u
r
a
m
O
0
_
d
N
y
O
Q6A. What percent of your total bookings does [Hotel] represent? m
E
CL
E
?
a
d
a
m
d
V
_
'N
m
N O
E
c
Y
a
o
I'
E
d
V
$
U
®
¢
c
=
O
v
n
A
m
,��'
o
iu
m
F
Z
O
C1
U
U
m
Y
J
Total
Total Resp?rses 18
American Motel & Suites
Marriott Courtyard. Mendota Hgts.
I
5%
951/4
DK
DK
Fairfield Suites
I
DK
35%
DK
Hampton Inn, Eagan 100°a
90%
'DK
50%
OK
33,4
Holiday Inn Express, Eagan
I
ICK
a0%
OK
OK.
Holiday Inn Select, Eagan
0`6
1 95%
95%
10%
65%
75%
5 %
DK
OK
Mendota Heights Motel
The Residence Inn, Eagan
DK
i
DK
33%1
OK
Yankee Square Inn, Eagan
33%
DK
Crown Sterting Suites
Carnage Greer.
5%
Grand Hotel
50%
. Nine hotels represent 65% of Natcv's total booking needs.
Amon, 18 different contacts in the E•aran corporate community, we found Restaurant Facilities.
Proximity to the Host Location, and Airpo-t Trac:-�portation were the three roost frequently mentioned
amenities. Airport Transportation tends to he et more si_nificant factor in Eacmn locations heczuse most
travelers to Eaoalr can connect easily to the airp-)rt without the use of a rental carif the hotel can provide
satisfactory transportation. Several respond:•nt- cr)mmented that in addition to Airport Transportation the
Power Systems Research 9 830000
Eagan Convention and Visitor's Bureau
ability to use hotel transportation to travel to -and -from corporate locations, the Mall of America, restaurants
and other surrounding attractions is also an important factor.
C�
Q3. What amenities do you require in a
Total
Total responses 43
hotel?
Percent
100%
Restaurant
8
18.6%
Proximity
5
11.6%
Airport
4
9.3%
Transportation
Computer Plug -ins
2
Computer Plug -ins
3
7.0%
Meeting Facilities
2
4.7%
Pool
n
4.7%
Fitness Center
2
4.7%
No Smoking Section
2
4.7%
King Size Beds
2
4.7%
Coke Affiliate
2
4.7%
Breakfast
2
4.7%
Apartment Suites
2
4.7%
Transportation to
2
4.7%
Office
Lounge
1
2.3%
Clean Rooms
S
2.3%
Quality
1
2.3%
Clean
1
2.3%
Economically Priced
1
2.3%
Q3A. What amenities would you lige to see in a hotel?
Total
Percent
Total responses
15
100%
Fitness Center,
4
26.7%
Pool
3
20.0%
Computer Plug -ins
2
13.3%
Restaurant
1
6.7%
Meeting Facilities
1
6.7%
Airport
1
6.7%
Transportation
Shuttle to Events
1
6.7%
Shuttle to the Mall
1
6.7%
Conference Table
1
6.7%
in Room
Lounge
0
0.0%
Power Systems Research to 830000
n Convention and Visitor's Bureau
Interestingly, local corporate travel planners depend on direct relations to the individual hotel
rather than throush national reservation chains. While major hotel corporations generally enjoy a very
significant advantage because of their national reservation system, corporate travelers to Eagan very often
are dependent on a local relationship. Most respondents said a recognition as a national chain hotel for
purposes of malting reservations was only somewhat or not at all imponant.
Q7. How important is name recognition/chain
hotel in making your reservations?
Total
Percent
Total valid responses 13
100%
d = Eyt. Important 0
-
3 = Very Imoortant 2
15.4%
2 = Somewhat Imt;crtant 5
38.5%
1 = Nct at all Important 6
46.2%
Nfore meeting space was frequently mentioned as a factor which hotel users would like to see
improved in Eagan facilities. Eleven of IS respondents regularly sponsor sales meetings, annual business
and planning meetings, client conferences and training sessions. The Holiday Inn Select was the only
Eagan area hotel in which these types of meetings are regularly held. Some, such as Koch Refining, go
outside of Eagan to hold these meetings in hotel facilities and others utilize both in-house and off-site
specialty facilities.
Q10. Does your company sponsor/host.....
Total Percent
Total responses 11 100%
Sales Nleetings 5 45.5%
Annual Meetings 3 27.39'o
Client Conference 2 18.2%
Trairino 1 9.1 °o
Overall satisfaction of survey respondents to the !e% el of hotel accommodwions in the Eagan area
could best he described as "moderatch satisfied." H rlf the respondents said then Mere seme.�hat satisfied.
but only one-third said they were -er; satis,l^d. Su-ges:ed improNements to incre se satisfaction seemed to
focus upon Netter meeting faciliti.s, gr+ester a:aiL,', ilia of full-service hotel accnmrn,,dat::mF, and improved
transportation capal'ilir;.
Power Systems Research I 1 83nono
in the Eagan area? 1
Total responses.
5 = Very Satisfied
4 = Somewhat Satisfied
3 = Neither Satisfied nor
Dissatisfied
2 = Somewhat Satisfied
1 = Very Dissatisfied
96 = Don't Know
Total
12
4
6
2
1
Percent
33.3%
50.0%
16.7%
Corporate sponsors for hotel and lodging needs indicate that they expect continuing modest growth
over the next several years. During the next year, most believe that needs will be about the same and none
of the respondents indicated that their hotel requirements would decrease. Over the next five years most
respondents believe their hotel requirements will continue to grow and while reluctant to quantify this
growth, most indicated they expected that corporate needs would continue to -row in the future at about the
same rate they have in the past and that their needs for hotel facilities will be similar to those currently
utilized.
Q8. Do you anticipate that your local hotel needs in the next year
will .....
Total
Percent
Percent
Total responses
13
100%
100%
Increase
2
53.8%
15.4%
Stay the Same
8
7.7%
61.5%
Decrease
0
-
Don't Know
Don't Know
3
38.5%
23.1%
Q9. Do you anticipate that your local hotel needs in the next 5
years will .....
Total
Percent
Total responses
13
100%
Increase
7
53.8%
Stay the Same
1
7.7%
Decrease
0
-
Don't Know
5
38.5%
Power Systems Research
830000
n Convention and Visitor's Bureau
SPILLOVER MARKETS
Eagan benefits from enjoying some of the highest occupancy hotel markets in the Twin Cities area.
The 494 Strip in Bloomington and hotels surrounding the airport and Mall of America typically experience
the highest occupancy rates in the metropolitan market. As a result, Eagan frequently benefits from
travelers destined for these attractions and when hotels closer to these attractions are full. Additionally, as
we have seen, 13% of Eagan's market consists of travelers visiting corporations located in other parts of the
metropolitan area and an additional 13% are travelers visiting attractions, sporting events. conventions and
other gatherings which are also located outside of Eagan. It is fair to say then that a quarter of the Eagan
hotel market is drawn from travelers to other parts of the metropolitan area. These travelers could, for
many reasons, choose to stay in other locations. With current hotel development in the metropolitan area, it
is likely that this sector of the market could be somewhat vulnerable and Eagan's only ability to respond
would be through lower rates or lower occupancy, neither of which is particularly desirable for the Eagan
lodging industry. At the same time Eagan could lose some of the spillover market as well as some of its
basic markets if Eagan hotel capacity and rates are not competitive with demands of the Eagan travelers. At
the current time the sectors most vulnerable to that possibility are the premium full-service hotels which
appear to already be losing business to full-service hotels in the Bloomington area and extended -stay
travelers where occupancy has increased rather steadily and remains at fairly high levels. On the other
hand, Eagan has had substantial development in budget hotels and appears to be drawing spillover from
other budget hotel travelers. Budget hotel capacity in the immediate surrounding main markets is limited
and Eagan's occupancy rates in budget hotels are significantly lower than those in the immediately
surrounding markets. As a result, it would be logical to conclude that Eagan will continue to draw from
these markets.
CAPACITY/OCCUPANCY/RATES/INDUSTRY HEALTH
Not surprisingly. occupancy rates, average daily rates and hotel capacity are all closek interrelated
to overall industry health within a community. The St. Paul market is an example of a market %,,H6 eot out
of balance with respect to capacity during the 19810s when the market was heavily overbuilt +pith premium
full-service capacit-:° Occupancy rates dropped to well below 50% and the hotel and lodging industry in St.
Paul suffered considerably as several major properties closed, down -graded le%els of service and suffered
from lack of maintenance. After an extended period of recovery, the market still exhibits the lowest
occupancy rates and lowest average daily rates in the entire metropolitan market. During our research. we
interviewed a number of major facility and market planners with national hotel chains. Indications are that
planners generally -.gill not enter a market unless -he;: can project a sustainable rarc of 70?n occupancy or
more on an average annual basis. Occupancy rates below this, according to these hotel planners, mean that
hotel properties general!k, are not viable and cann❑t be sustained in a profitable manmer. At 1,;";, Eagan's
Power Systems Research 13 830000
/
F
Convention and Visitor's Bureau
occupancy rate is still regarded to be very healthy but the overall trend is troubling and particular concerns
are evident when the trend by hotel type is examined.
Eagan Occupancy Rates By Hotel Type _ 1996 / 1997
Jr'9E I b-" A .M An.M MMM J.—M uM Au999 S—M 0d_99 Her.9e 0r99 1-97 F'_97 4Yr.97 0p.97
While occupancy rates for premium full-service hotels and extended -stay hotels in Eagan have
been very strong for the past 18 months, the recent addition of considerable capacity in the budget hotel
market has caused occupancy rates to drop sharply to below 60%. Additional capacity in this segment will
exacerbate an already troubling trend. Average daily rates interestingly tend to be consistent with
occupancy statistics. The lowest occupancy rates are experienced by those hotels in the market with the
lowest average daily rate, whereas the highest occupancy rates are experienced by those hotels with the
highest average daily rates. While the budget hotels have been increasing rates rather sharply over the past
few months, occupancy trends indicate that these increases will not be sustainable. In the short term hotels
generally will try to offset declining occupancy with higher rates but this will ultimately lead to rate
discounting in an effort to improve occupancy levels. In June of 1997 the average daily rate at Eagan hotels
was actually slightly lower than the rate in June of 1996 and the ability to increase rates has been softened
considerably over the past several months.
Power Systems Research 14 830000
Eagan Convention and Visitor's Bureau
1997 61.14 71.60 74.00 -9.98 65.35 83.50 86.21
]n our discussions with hotel planners. it became evident that the level of planning which goes into
hotel site selection is very inconsistent from one hotel _roup to another. S._%eral of the major chains,
including Hilton, Holiday Inn, Sherraton, Radison and others, carefully study market trends, competitive
plans and market projections, much as we have done in the course of this research. Others, typically
independent operators, complete little or no research and react simply to market trends. It is evident in
Eagan that this has occurred in several cases where independent developers observing a sharp increase in
occupancy rates in budget hotels during the past 18 months have reacted by constructing new budget hotels.
The result, of course, is that several people independently arrived at the same conclusion without
consideration of the reaction of others. The end result will be an excess in capacity of budget hotels and the
same appears to be evolving in the extended -stay market as well. Planners for full-service premium hotels
typically report that they target markets where occupancy rates are consistently in excess of 78%. Several
indicated that the Eagan market appears to be an important opportunity for just this type of hotel and the
new Hilton Garden Inn appears is a step in that direction.
DETERMINING LODGING NEEDS
NVIien deterrninina if and when an area'municipality could support new hotels. the
following factors are taken into consideration:
• Overall occupancy rate of current hotels over a period of nvo to three years. Fxperts
vary on what percent would indicate a need for more hotels but a ?0-7P,o range is
standard.
• Evaluate the h-pcs of hotels in n given area and the community's needs.
• Studv the economic zrowth of an ar^a io determine if there are new h-usin.Zsses being
proposed or new attractions of national or international significance in the near
future.
Power Systems Research 15 830000
a 0
EaCan 11mel rarimies
Eagan Convention and ViNitors Bureau - 199'
A, erase Daily Rates
1997
Alonthly Statistics
Yankee Square
Hampton
Holiday inn holiday Inn Fairfield
Residence
Corrtyard
Monthiv
Year -to -
Inn
Inn
Express Select Suites
Inn
Average
Date Average
JAN
557.43
569.52
568.78 575.55
530.37
570.43
$70.43
FEB
559.00
$68.70
573.39 S7689
579.30
571.56
570.99
MAR
561.90
570.27
578.43 S7667 Open 3 days
582.64
573.98
571.99
APR
559.14
569.95
576.22 $73.00 562.62
584.38
571.77
571.93
MAY
560.42
S6942
$78.04 577.17 568.33
585.98
586.64
573.16
572.18
JUNE
565.16
$74.20
S84.87 581.37 S76.06
592.17
586.60
580.11
573.83
6 MTH.
561.30
571.86
576.83 578.46 569.34
586.52
586.62
575.30
572.13
AVG.
1997 61.14 71.60 74.00 -9.98 65.35 83.50 86.21
]n our discussions with hotel planners. it became evident that the level of planning which goes into
hotel site selection is very inconsistent from one hotel _roup to another. S._%eral of the major chains,
including Hilton, Holiday Inn, Sherraton, Radison and others, carefully study market trends, competitive
plans and market projections, much as we have done in the course of this research. Others, typically
independent operators, complete little or no research and react simply to market trends. It is evident in
Eagan that this has occurred in several cases where independent developers observing a sharp increase in
occupancy rates in budget hotels during the past 18 months have reacted by constructing new budget hotels.
The result, of course, is that several people independently arrived at the same conclusion without
consideration of the reaction of others. The end result will be an excess in capacity of budget hotels and the
same appears to be evolving in the extended -stay market as well. Planners for full-service premium hotels
typically report that they target markets where occupancy rates are consistently in excess of 78%. Several
indicated that the Eagan market appears to be an important opportunity for just this type of hotel and the
new Hilton Garden Inn appears is a step in that direction.
DETERMINING LODGING NEEDS
NVIien deterrninina if and when an area'municipality could support new hotels. the
following factors are taken into consideration:
• Overall occupancy rate of current hotels over a period of nvo to three years. Fxperts
vary on what percent would indicate a need for more hotels but a ?0-7P,o range is
standard.
• Evaluate the h-pcs of hotels in n given area and the community's needs.
• Studv the economic zrowth of an ar^a io determine if there are new h-usin.Zsses being
proposed or new attractions of national or international significance in the near
future.
Power Systems Research 15 830000
a 0
In the short term it is clear that we can project declining occupancy and average daily rates through
the end of 1997. The development of this trend is already evident and there is no indication that travel
patterns, market developments or competitive changes will drive both occupancy and average daily rates
anv direction but down. The opening of several ne%v facilities in late 1997 will exacerbate a situation that is
already softening.
Eagan Hotel Occupancy & Average Daily Rates
tccupancy'*� ----------------------------- ---------
- -- - -----
Rates $
S 8 S 8 q 4 ^e
4 i 3
_`�--
------------------------
----------------
FACTORS THAT COULD INFLUENCE EAGAN'S LODGING NEEDS
Negative Factor
• Can the Mall of America sustain its national and international tourist draw? Prior to
the opening of the Mall, local hotels were averaging 50 - 60% occupancy rates. After
the opening of the Mall, occupancy rates increased to over 80% on an average. The
Minnesota Department of Tourism fears that the Mall's draw is going to "flatten" and
possibly decline. A "bigger and better" mall is being proposed in Kansas City.
When, and if this occurs, it could have a serious impact on Twin City hotels.
Positive Factors
• The increase in airport traffic will have a large impact on local hotels. It is estimated
that two million more passengers will be traveling through the Twin Cities within the
next ten years.
• Eagan is developing a reputation as a hotel community that can draw visitors from
the Bloomington Strip.
• Eagan's strategic location is a plus with highway 494 and 35E, proximity to the
airport and both downtown areas.
• Local businesses cite proximity to their locations as a major factor in selecting a hotel
for their guest. The majority of businesses surveyed have had difficulty in making
reservations and have had to rely on hotels outside the area.
• Eagan, like most of the Twin Cities communities, is impacted by large conventions
and activities hosted in the area. For example, Eagan's hotels were needed for the
Lions Club convention and the Burnett Open. While this is not a steady source of
business, expanded marketing effort on the part of both convention centers of
Minneapolis and St. Paul could increase demand for hotel space in Eagan.
C2l
n Convention and Visitor's Bureau
MARKET OUTLOOK
Based upon the projected growth in demand over the next several years. it appears that corporate
demand will be the strongest and most consistent driver of additional hotel and lod_in; business in Eagan.
In addition, it is reasonable to expect that Eagan will continue to be a vett• competitive supplier to the
greater metropolitan market but it is unreasonarie to think that the traffic to the Mall of :+merici will grow
appreciably over the next several years. The Niall is already attracting visitors at a verb high level and it "will
be a major chailenge to sustain this level. Nle-.% development at the Mall will not take place in the
foreseeable fitture, at least within the five-year scope of this forecast, significant enough to draw
considerable increases in visitors using the Eagan hotels. The airport will continue to be an important
market and should grow on a consistent basis. Economic growth and development in other sectors,
particularly sporting and conference events, shat H benefit Eagan. The development of a ne:v convention
center in St. Paul and the introduction of professional hockey in the St. Paul market will benefit Eagan
hotels as well.
Demand Creation
Projected
Annual
Growth %
% of 1997
Demand
Impact % of Visitors
Full Service
Extended Stav
Budget
Mall of America
28
0
25
22
Airport
9
5
5
12
Local Corporation
38
8
38
70
34
Greater Metro Corporate
13
ti
18
8
14
Conference/Sports
14
2
9
7
3
Other
5
?
5
=
15
Projected Annual Growth %
4.65
6.57
4.52
Generally this forecast would indicate that Eagan could reasonably expect demand for
approximately 38-40 new hotel rooms per year over the next five years without significantly affecting the
current healthy occupancy rate. But more irnrnr?^nt!°:, it appears that the health of the hotel and lodging
industry in Eagan can best be served if most of th-:se rooms are added in the full-service and budget
categories. Continued expansion of the extended stay category does not appear to be a healthy direction at
the current time. Although demand for extended 'stay xill grow at the fastest rate, it is driven from a small
base. The addition of a single facility has a large impact on capacity and occupancy rates.
Power Systems Research 17 830000
a�
f
dh dh
We are less able to forecast the type of new developments which will take place in Eagan. We do
know that major hotels will probably not be attracted to the Eagan market for two or, three years after the
opening of the Hilton Garden Inn. Based on the forecast demand, occupancy levels will return to the 75%+
range in that category within two years of this facility's opening. Budget hotels may continue to be
developed, although informed developers would seem to be less than prudent in developing new budget
hotels in Eagan over the next several years. Extended -stay hotels are more of a question at this point. With
some additional development now underway, occupancy rates will soften considerably despite continued
strong growth in this category. Another extended stay facility could undermine the viability of this sector.
Growth and demand over the next five years would indicate that Eagan can reasonably expect to be opening
one 103+ roont full-service hotel every five years without significantly undermining the current business
base.
c�3
Power Svstems Research 18 830000
FORECAST AVER,4GE ROOM NIGHT DEMAND - EAGAN
Annual
Projected
Growth
1998
1999
2000
2001
2002
1996
1997
Full Service
273
278
291
301
319
333
349
Capacity
333 1
333
4.65
333
433
433
433
433
Occupancy %
82.0%
83.5%
87.46,10
70.3
73.6%
77.0%
80.6%
Extended Stay
89
96
6.57
102
109
116
124
132
Capacity
120
120
240
240
240
240
240
Occupancy %
74.2%
80.0%
42.6%
45.4'%
48.4%
5)1.6%
55.00`6
Budget
255
331
4.52
346
362
378
395
413
Capacity
350
472
592
592
592
592
592
Occupancy 6/6
72.9%
70.1%
58.4%
61.1416
63.8%
66.7416
69.7%
Total
617
705
739
775
813
852
894
Capacity
803
925
1165
1265
1265
1265
1265
Occupancy %
76.9
76.3
63.4
612
64.2
67.4
70.6
We are less able to forecast the type of new developments which will take place in Eagan. We do
know that major hotels will probably not be attracted to the Eagan market for two or, three years after the
opening of the Hilton Garden Inn. Based on the forecast demand, occupancy levels will return to the 75%+
range in that category within two years of this facility's opening. Budget hotels may continue to be
developed, although informed developers would seem to be less than prudent in developing new budget
hotels in Eagan over the next several years. Extended -stay hotels are more of a question at this point. With
some additional development now underway, occupancy rates will soften considerably despite continued
strong growth in this category. Another extended stay facility could undermine the viability of this sector.
Growth and demand over the next five years would indicate that Eagan can reasonably expect to be opening
one 103+ roont full-service hotel every five years without significantly undermining the current business
base.
c�3
Power Svstems Research 18 830000
n Convention and Visitor's Bureau
RECOMMENDATIONS AND CONCLUSIONS
While it is beyond the score of ctry resrors+i!ities to dictate the tyre of dc�elcpm•:nt %Nhich is
allowed in ar,y given market, it ;: also clear that prudent planning will be required to assure the critically
important viari!ity of the Eagan !^dging indu5tn. An unhealthy lodging industry can become a serious
problem for a community in attracting the wrong kind of travelers and undermining the attractiveness of the
community for further private investrient. It seems clear that Eagan should contint!e to fuel the type of
commercial development which brings %Nith it demand for lodging but at the same time should require
developers to indicate that they have been prudent in their planning and in their development expectations.
The addition of a convention and visitor's bureau and the provision of good statistical inforrlation means
the circ has at its disposal tools to monitot anal encourage sound development and resronsi%eness to the
demands of loci! markets. It appears that E2^ -.in currently has a strong and well-balanced lodging industry
but is in danger of becoming over -developed ,!d over -capacity in the budget pnrtinn of the r„arket which
could arguably be described as some of the !e — , desirable portions of the market. ()n the other hand.
industry experts indicate that this is the portion cf *.he market which typically can or -crate at considerably
lo -.ver occurancv rates. Fixed costs in this industr sector are considerably lower bur it is for t)tis reason
that investments in this sector often are made with less rigorous planning and market analysis as well.
RECOMMENDATIONS
• Eaean should consider developing a planned p-licy of hotel grn:vth based on a
sustained occupancy rate of 7o -'GOA While the local hotels have exceeded this in the
last two years, two new hotels under construction and the proposed Hilton will add
-20 new rooms to the area.
• Several of businesses surveyed (70`10 felt that impro%ements need to be made to the
existing hotels and expansion of the types of accommo atir.ns available. Additional
services need to be added such as transportation to and from company offices,
facilitate booking and billing procedures, and increase the variety of amenities
currently offered.
t2
Power Systems Research 19 , 830000
1997-1995 Marketing Plan
Eagan Convention & Visitors ]bureau
Submitted: October 1, 1997
ECV'B Board of Directors
Tim Dunn-Chainnan
Todd Byhre
Tamara Carlisle
Jennifer Hearon
Torn Hedges
John :Kemp
Mark Reimer
Steve Schlundt
Diane Signorelli
Lana Sloan
Patty Spanheimer
Michelle Steffens
Joel Vogler
Sherie Wallace
ECVB Staff
Ann Carlon
Anne Sullivan
Lynn Nlatty
14,74 Fan!<c c I)nnrile Road• liag cn, R1imresota • i,! ? 1 1 lt! 'fel i52 9188 • Fi%: 012-4i i-Sir)VS e 1-800 17A(,AN-20
�s
Eagan Convention & Visitors bureau
1997-1998 MARKETING PLAN
1 fi.C.cir�tT S1c7tenTelTt: 7o pr nwte Etlg(7n as a preferred dc.�iinat;on and to
(01 -ante the economic impact rtf iow-ism in the FagyatT ai-m.
1997-98 Objectives -
1 Increase off-season marketine from mid -'november through May
Focus on top feeder cities and International travelers
2 Strong public relations and set -vice orientation to promote general awareness of
destination
3. Continue CVB connections with 'Minneapolis. St. Paul R Bloomineton to
encourage overflow convention activity to Eagan
5. Focus on Mall of America & NWA packages to ensure high occupancy levels.
1997-98 Goals:
Increase off-season marketing from mid-November through May
International marketing - partner with NXVA
Travel Agent Marketing - hotel packages for off-season with Park n Fly
Continue to encourage corporate use of Eagan hospitality
Technology improvements for the future
Evaluate staff to determine additional sales staff needs
Develop an Image for Eagan - Build image through the media
Promote a "Gathering Place" for events - a central festival site
Staff assessment of new potential markets - church & sports croups_ etc
Create av, areness of the CVB with local businesses through strategic partnering
%yith the Eagan Chamber of Commerce and Eagan Fconotnic Development
Commission
Marketinta stratedes designed to address the zoals & obiectives:
MARKETING STRATEGY Timeline Estimated COST
Lei.5uret' .'mike
I Eauan's 1997 Tourism Brochure Print 50.000 1/1/98 $22.,000
2 Eagan Coupon Book Print 50.000 li 1 / 98 $12.000
3 Minnesota Brochure Distribution
1-3 5 South to Albert Lea Dec -Mar $3 5/mo $140
Milwaukee Corporate Dec -Mar $78/mo $312
Chicago Corporate Dec -Feb 5130,%mo 5.101)
Explore !Minnesota Store Mall of America Av 500/day S25()
4. Print Advertising - newspaper coupon ads, travel magazines
group tour magazines, meetings publications
MARKETING STRATEGY Timeline Estimated COST
Twin Cities Visitors Guide 11/2/97
$3,802.50
Japanese Guide 11/1/97
$1,445
Travel Management - Japan 10/97
$750
Eagan Telephone Book 12/1/97
$172.50
Minnesota Meetings & Events Apr/Dee 1998
$3,600
2 issues of 20,000 to local, regional & national
Meeting Planners - ASAE, ATD, MPI, MBPA, SITE
Corporate Travel Agents, MN Film Board, ROMA, SME
Destination Minnesota Jan./Sep 1998
$2,000
2 issues of 20,000 to Group Tour Planners & UBOA
ABA, NTA, ACTH, Educational, Jack Rabbit, Jefferson,
Midwest Motorcoach, MN Chamber, Ontario Motorcoach
Chicago Tribune Oct./Mar.
$2,888
Circulation 1,098 mil
AAA Home & Away Sep/Oct 97 "Touring the Twin Cities"
Nov/Dec 97 "Hotel Shopping Pkg
$8,76775
#1 Magazine for conversion ratios in Wisconsin
Circ. 2.7 mil - AAA members account for over 27% of all
hotel room nights in Twin Cities in 1995.
AAA Tour Book 1998
$4,500
Midwest Living 10/30 & 2/27/98
$9,458.80
Sep -Oct 97 4" 4/c 2 1/4" x 4" Circ. 852,000
$3,183
Nov -Dec Poly -bagged "Holiday Plus Minnesota Travel"
$1,000
Better Homes & Gardens Travel Central.
$9,435
Feb/Mar/Sep/Oct $2,358.75 per insert Circ. 7.6 mid
Circ 1,448,000 Spent $2.5 billion on domestic vacations
Great Lakes Group Tour Magazine Oct, Apr, `98
$1,222
Ad & Editorial reduce to 2 issues this year
Midwest Vacation Guide Newspaper Insert March `98
$5,200
Fall/Winter Vacation Guide Newspaper Insert Aug `98
$1,999
Circ. 2.4 million Des Moines, Kansas City, St. Louis, Detroit, Chicago,
Minneapolis, Indianapolis, Cleveland, Milwaukee Sunday Newspapers
Brochure File Folder Mid -Jan 1998
$ 500
Circ. 10,000 Tour Operators, Group Tour, Travel Writers,
AAA
Minnesota Explorer Summer/Fall/Winter
$4,250
Listing and ad
Statewide Guide 1/12 3 5/8" x 19/16"
$525
Primary response piece for statewide information to non -Minnesotans.
TIC, Shows, Media, bulk distribution -AAA 3.50,000
Chicago Magazine 3 mo.. for Travel Showcase
$1,080
Kansas City Star Brochure Page Oct./Jan.
$600
Metro Iowa Plus Brochure Page April /Sept
$2,960
940,534 subscribers in Iowa, 7th largest market in the U.S.
Cedar Rapids, Quad Cities, Des Moines, Dubuque, Iowa City,
Omaha, Sioux City, Waterloo
OMCA The Road Explorer Nov/March
$840
Eau Claire Leader-Telegram/LaCrosse Nov/Dec
$718
USA Getaway Guide -Canada March `98 Central & West
$4,300
USA Getaway Guide - Canada Sept. `98 Central
$2,200
41 % of Canadians travel to the US October through March
$5,000
Circ. 1,081,500 to Toronto, Windsor, Winnipeg, Thunder Bay, Calgary,
Alberta, Edmonton, Vancouver, British Columbia, Saskatoon, Regina
USA Weekend Nov `97 & Mar `98
$11.160
MN, WI, IL,OH,IA.KS,NE,ND,SD,MI 5,700,000 circ.
Promotional gifts
Milwaukee Journal Sentinal - Brochure Pages
$2,000
Contact USA
$450
ACTA - Canadian Guides
$615
New York Times/Boston Globe
$1,500
Police & Sports Ads and sponsorship
$350
Vis -FAX i ith Mall of America NOV-Jan
$329
NWA Passages & World Traveler N1,'iQUines
$1,800
Publication editorial stories included x, ith advertising-
N/C
SIJB-TOTAL
5. Advertising Agency & Creative - ad production
$12,00?
6. Coupon ads in Newspapers for 1 ]:'97-5 98 250off specials
S26,900
Place 2x -Nov, 1 x -Dec. 2x -Jan. 2x -Feb. 2x -April, 1 x-Niav
2x2 ad Iowa $850, Wisconsin $900. North Dakota $350
Minnesota $1.000, Kansas $500, Illinois 51.100
AJI Nov. Dec. Jan. Feb = $18,800
Extra placement in Iowa & Wisconsir.-Nov. Feb & April=$5.25�?
Extra placement in Illinois, Iowa. Wisconsin -Jan = $2,850
7 Coi7,nrate .Afurketnrg - Sales calls to Corporate & Travel Agencies
south & east cities with large
$5,000
corporations (Chicago. St. Cloud. Duluth. Cannon Falls, % ilwaukee
LaCrosse. Madison, Rochester. Green Bay, etc..)
Promote with Hotels-ECVB to incur travel and meal costs.
Promotional gifts
$2,000
Corporate appreciation Reception/Annual 'Meeting
$6,000
$13,000
8. 7rcn e1 Agents - Promote Park n'Fly with survey & prize drawing -games
Send prizes to agents who return survey.
$2,500
American Society of Travel Agents Show
$2,500
$5,000
9. Leisure Marketing - More Americans are planning summer travel vacations 734"0
compared to 62% who traveled last summer. 64% will travel to another state
while 21% will stay within their own state. 15% will travel outside the USA.
Promote with Shopping Bags $11,100
Weekend Getaway Package - Nov.-Mav Target Minnesota $2,500
$13,600.
10. Group Tour Marketing - The economic impact of Group Tours has increased 39%
since 1993. In 1996, group travelers contributed more than $11.6 billion to the
North American economy. Last year, the number of group tour travelers totaled
25 million for an increase of 22% since 1993. As the population of baby boomers
and mature travelers grows, the popularity of tour traveling has increased. In July,
Minnesota hosted 86 overnight motorcoaches & day tours for 1,713 rooms.
Develop Joy Ride program with NATCO
NTA Annual Convention 11/6-11/98 St. Louis, MO $2,500
ABA Annual Convention 12/6-11/98 Milwaukee, WI $2,000
FAM tours & $100 Gift Cert. $1,500
Group Tour Committee Meetings 4x/year + Annual Meeting $500
Minnesota Tour Operator Lunch 3/17/98 $75
Mall of America Coupon Books $3/ea 2m $6,000
$12,575
11. Church Groups - Brochure production & Direct Mail Program $5,000
1.2. Military Reunions •- Produce new Brochure & Direct Mail -July `98 $4,000
13. Winter Sports Groups - Sports marketing and Cultural Tourism are
burgeoning profiles with statistics to justify the effort. Flyer Production,
Direct Mail Program -set parameters -$50 Gift Cert. - August `98 $1,500
1.4. Convention Marketing - The recent IACVB convention income survey estimates that
delegate spending is up nearly 4% totaling $218.43 per day per delegate.
Sales calls, direct mail, telemarketing
MPI, MSAE Membership meetings, networking, FAMs $2,500
Ad placement in MSAE Focus Newsletter 4x (co-op Royal Cliff) $2,000
MSAE Expo May 19, 1998 $700
$5,200
15. CANADA Marketing - sales calls to Winnipeg & Thunder Bay (ACTA)
a) April 1998 partner with Minnesota Zoo (MOT April 20-24) $2,000
b) Canadian Travel Technology Trade Show $2,000
c) Canadian Media and FAM Tour Program with MOT Como
$4,000
16. Newsletter - 4/year Increase circulation to all Eagan businesses $16,000
17. Update Group Tour Manual and print 2,000 copies $12,000
N3
i7
M
IS Intei-mvional Afarkeling - International travelers to the US spend $218 million per day
Brand narne and mid -priced hotels were the most popular forms of accommodation
and trip expenditures average $5,600 per travel party.
Direct mail program to China Travel Azent market
$800
Tokvo's Western Villaee is featurinu ?Minnesota as the
destination of choice beeinnine NIaN 1997 for one year
September 1998 - In conjunction v ith the Minnesota Orchestra
tour in September - meet with Tour Operators,
host a maior event and conduct travel aeent training with MOT
$2,500
Japanese Receptive Operators Reception - February 1998
$1,500
Partner with MOT & Holiday Inn Select (attended last year)
New, Fork Sales Mission - Sept. 1098 Partner with MOT & Select
$1,500
Asian FAM &'Media Programs with MOT
Comp.
Great Lakes Brochure Distribution Program
$1 100
Brochure distributed at three trade shows in Germanv
$6.600
(Visit USA Germany. ITB and Visit ( FSA Switzerland plus
two shows in the United Kinedom-World Travel Mal ket-trade
and Destinations 98 -consumer show)
19 Ttzrget 19(7rkefirrg - Freight Comlwnic��
Encouraee Freight companies to use Eagan hotels for clients
Direct \fail - Brochure & Meetine Planners Guide $100
20. Travel Ti-acle Shrnt's
a) \CTA Thunder Bav (co-op with Zoo) October 24-26/94 $1,500
Booth $500 - Zoo pax•s transportation - Hot elt"Ni -leals-4days
b) Jack Rabbit Show 2/6-8198 Sioux Falls SD $1,000
Booth $450 - 2 Days with sales calls
c) Chicago Travel Show 2:'2>-3/_rc4 $;,500
Booth $750 - 8 Days with sales calls
d) Des Moines Sport & Travel Show 3/3-7/98 $2,500
Booth $500 - Shakopee to attend 3-5 Eagan to attend 5-7
e) Milwaukee Sport & Travel Show 3/13-22/98 $4,500
Booth $750 - I 1 Days with sales calls
f) GLA.n1ER Shows $1,500
Booth $450 (84.1; of group leaders plan their tours
only IL 6% use a tour company)
P) T1A International Pow Wow - 5/23-28, 1998 Chicago. IL. $2,500
Largest international show held in the US - attend by $17,000
invitation only - partner with MOT
21 Everts - special promotions, festivals. direct mail, ads $10,000
$5.000 offered as a matching grant to community events
Partner relationship with the City of Eagan
22. 1999 - Eagan celebrates its 25th Anniversary as a city - need to develop a highly
visible community event to attract national media attention.
23. BEST organization firnding National Tourism Week Reception
24. Outdoor Billboards - New board in Wisconsin on I-94
Do not renew Forest Lake Board
25. Aitport posters at carousels
26. Postage for direct mail & fulfillment
27. Internet Web Site - Interactive - Create and hosting of site
28. Maps - Travel Graphics, Eagan Lions Club
29. Video Tape - 4 minute promotional video on Eagan
$500
$24,286
$5,500
$20,000
$5,000
$5,400
$8,000
30. Tourist Information Center $3,000
Work on new sign ordinance with City to develop
Signage for hospitality & attractions in Eagan
Fax Machine, Fax phone line, furniture_, shelving, automated
information on phone
31. Additional Employee - payroll, taxes, benefits, office expenses, etc. $25,000
Receptionist/Sales Assistant/Database
32. Education MOT Annual Meeting 2/98 $1,000
Meetings & Seminars $1,500
Front Office Training $600
$3,100
33. Research Postcards for guests to complete -receive coupons $350
34. Associations - MACVB, MMA, TMA, TCTAA, MAI, MPI
NTA, ABA, MSAE, IFA, TIA, Metro Assn. ASTA $6,000
31
L
Sub -Total Marketing & Advertising $401,303.55
OPERATIONS:
Rent R. utilities
Audit
Accounting
Depreciation
Education
Insurance
Supplies
Telephone
Reserve Fund
Administration Fee
Equipment Leases
Equipment
Maintenance
Sub -TOTAL
1998 TOTAL
PERSONNEL:
$15,000
Wages
$95,000
$2,800
Payroll Taxes
$7,500
$2,340
Health Insurance
$2,500
$2,600
Expenses
$5,000
$2,500
SEP/IRA
$4.400
$3.800
Sub -TOTAL
.10 "ON Tr
$7.000
$ 3,500
1994 $176,842.69
$9,500
$ 12,000
S10.000
$587,500
$4,200
$2,000
(Telephone. Copier. Postage)
$10,000 (Update Computer Equipment -Internet)
$587,413.55
Estimated Expenses
Estimated Income for 1997-1998
1998 $587.443.55
3° o Lodpina Tax
5550,000
Membership Dues
$ 2,000
Comparison to:
AdvenisinR,Coupors
$ 1.000
1997 $440,500.00 (est)
Fvents
S 4,000
1996 $349,851.00
MOT Co-op Fund
S 15,000
1995 $278,957.00
Investment Income
$ 3,500
1994 $176,842.69
)Nlonev ,%larket
$ 12,000
TOTAL
$587,500
3;L
city of eagan
TO: TOM HEDGES, CITY ADMINISTRATOR
FROM: LISA J. FREESE, SENIOR PLANNER
DATE: OCTOBER 16,1997
SUBJECT: COMMUNICATION'S TOWER ORDINANCE
MEMO
INTERIM ORDINANCE — TOWERS ON P, PUBLIC ZONED LAND
BACKGROUND
At the September 2°d City Council meeting, the Council requested an interim study regarding the
appropriateness of communication towers in P, Public Facilities district. Of particular concern was
the proximity of such facilities to residential properties under the new ordinance that was adopted
by the City on May 6, 1997. This new ordinance increased setback standards and significantly
reduced the zones that commercial towers are allowed by conditional use permit. The significant
changes made in the revised code are as follows:
The new ordinance (attached) was developed to respond to changes in the cellular and personal
communications industry brought about by additional licenses being sold by the Federal
Communications Commission, and by the passage of the Federal Communication Act in 1996. This
Act originally included language that would override a municipality's zoning controls over
telecommunications towers. This language was removed shortly before passage, however, and the
Act now reads, "Except as provided (herein), nothing in this act shall limit or affect the authority of
a State or local government or instrumentality thereof over decisions regarding the placement,
33
Old Code
New Code (adopted 5/6/97)
Towers Permitted
All zoning districts
Industrial and public districts
subject to CUP
subject to CUP
Tower Height
100 feet
100 feet
150 feet for co -location tower
Tower Setbacks
Equal to height of tower
Building setbacks of the district
Commercial towers 2X height
of tower from residential structure
Satellite Dishes/
Not Regulated
15 feet above the roof in all zoning
Antenna
districts
The new ordinance (attached) was developed to respond to changes in the cellular and personal
communications industry brought about by additional licenses being sold by the Federal
Communications Commission, and by the passage of the Federal Communication Act in 1996. This
Act originally included language that would override a municipality's zoning controls over
telecommunications towers. This language was removed shortly before passage, however, and the
Act now reads, "Except as provided (herein), nothing in this act shall limit or affect the authority of
a State or local government or instrumentality thereof over decisions regarding the placement,
33
construction. and modification of personal wireless service facilities." The Act does place three
important limitations on local governments: 1) cities may not "unreasonable discriminate among
providers of functionally equivalent services". ?) cities may not "prohibit or have the effect of
prohibiting the provision of personal wireless services". and 3) cities may not regulate personal
wireless services "on the basis of the environmental effects of radio frequency emissions to the
extent that such facilities comply with the (FCC's) regulations concerning such emissions."
The new ordinance was developed recognizing that there would be increased competition for
siting communications facilities and that the City was limited in its scope of regulation. In its
adopted form. the new ordinance is more restrictive than the old ordinance with regard to towers
(Setbacks & zoning districts allowed) but more permissive with regard to antenna placement
(which was not previously provided for).
Setback Issue
The issue regarding setbacks and proximity to residential properties was brought to the forefront
this summer with the applications from AT&T wireless near the proximity of Cliff Road and
Pilot Knob Road. At the public hearing for the AT&T R'ireless proposal on the Park View golf
course concern was expressed by the APC regarding the CUP provisions on P. Public Facilities
zoned property. The City Council also shared this concern and requested that the provision of
the CUP regarding setbacks be examined further.
Included with this memo is a map that depicts all tower and antenna locations in the City and
includes generalized land uses of the properties. 1Vhen the ordinance was developed it was
recommended by the APC. after significant deliberation. to onh allow CUP's on 1-1. l-'. and P
zoned properties. P. Public Facilities was included as an area to allow- towers by CUP because it
would provide opportunities for siting towers in portions of the Cite with little or no industrial
land.
APC Discussion
In response to the Cite- Council's request for an interim study of the setback issue. the APC
discussed several alternatives at their workshop on October 10`h. The alternatives considered
and recommendations made are as follows:
1) Change Setback measurement from "residential structure" to "residential propem, line." This
would result in additional setback for most residential properties and would protect
residential properties that are currently undeveloped.
All APC members felt that this revision should be considered by the City Council. Two of
the members felt that this was the only change that should be considered at this time.
3 `i
["I
2) Increase the tower setback minimum with no factor for tower height — i.e. 300' setback: or
increase the setback factor upward from 2 times the tower height. The current ordinance
requires a setback 2 times the height of the tower measured to the nearest residential
structure. For a 100' tower, it would need to be setback 200' from the closest residential
structure. Some communities have larger setback requirements. Bloomington, for example,
has a 600' setback from the property line of all protected residential uses (i.e., single-family
homes). A concern with increasing the setback in the P zone is the FCA limitation on
municipal regulatory authority. The APC felt that increasing the setback on P zoned property
could be too restrictive and have the effect of prohibiting the activity. The impact of a couple
setback alternatives are illustrated on the Map 2 (attached without number)
The APC felt that a higher standard than in the current ordinance such as a minimum of
300'base setback or increasing the ratio might be acceptable. The advantage of increasing
the setback requirement is that it is a clear standard that could be measured by the provider
when considering sites. It is, however, inflexible and does not effectively deal with
topography issues that might affect provider coverage. An increased setback would reduce
the P, Public Facilities zoned property available for siting.
Two APC members favored this change.
Incorporate a provision that would allow increased tower height to compensate for elevation
changes resulting from efforts to increase setbacks from residential.property. Commissioner
Bakken suggested that the City could develop a provision that would be more flexible by
allowing the height of a tower to be increased by the difference in elevation between the
provider's preferred site (closer to residential) and the alternative site with increased
setbacks. The APC discussed what the incentive would be for the provider: why build a
higher tower at more expense which needs a longer access road and at additional cost. Some
APC members felt that community "good will" would provide the incentive.
Two APC members favored this alternative.
4) Pursue Co -location with other utilities (i.e. replace power pole with communication tower
polel. The City already allows the placement of communications antennas on city water
towers. City staff has been exploring the possibility of co -location of communication
antennas with other utilities, in particular electric utilities. Dakota Electric and Cooperative
Power were contacted to determine if they would consider the replacement of a power pole
with a monopole structure to allow the co -location of the antennae and the power lines.
While they would not consider them on high voltage lines (along the Wilderness Run
corridor), they would consider such an arrangement on transmission and local service lines
along most of the major road corridors in the City (i.e., Cliff, Wescott, Yankee). The main
advantage of this concept would be that the utility poles already exist and that the
visual/aesthetics acceptance of the power -line corridor is already established with adjacent
residential neighborhoods. The concern with this alternative would be the placement of the
equipment buildings required for these facilities. If pursued, the APC questioned where
35-'
should this be allowed --all utility pole corridors or just selected areas where there is limited
siting potential?
The APC concluded that this idea might be worth pursuing if the City Council deems it
appropriate.
Attachments:
1) Ordinance (adopted 51''6/97)
2) Map -Communication Facilities Locations (without page number)
3) Map -Setback Illustrations (vvithout page number)
36
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN CITY
CODE CHAPTER FOUR ENTITLED "CONSTRUCTION LICENSING, PERMITS AND
REGULATION, INCLUDING SIGNS, EXCAVATIONS AND MOBILE HOME PARKS" BY
DELETING SECTION 4.50; AMENDING CHAPTER ELEVEN ENTITLED "LAND USE
REGULATIONS (ZONING)" BY ADDING SECTION 11.10, SUBD.. 30, REGARDING
REGULATIONS OF ANTENNAE, TOWERS, SATELLITE DISHES AND WIND ENERGY
CONVERSION SYSTEMS; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE
CHAPTER 1 AND SECTION 11.99,
The City Council of the City of Eagan does ordain:
Section 1. Eagan City Code Chapter 4, is hereby amended by deleting Section, 4.50 entitled
"Placement, Erection and Maintenance of Wind Energy Conversion Systems and Radio or TV
Towers" in its entirety.
Section 2. Eagan City Code Chapter 11 is hereby amended by adding the following definitions to
Section 11. 03, to read as follows:
Secs 11.03. Definitions.
"Antenna" - A device used for transmitting or receiving electromagnetic waves, including but
not limited to: television or video, AM/FM radio, analog or digital, microwave, cellular or
personal communications service (PCS), telephone or data, or similar signals.
"Preferred Co -location Site" - An existing or approved tower, structure, or building which
may accommodate planned equipment for a proposed new tower within a one-half ('/z) mile
search radius of the proposed tower location.
"Satellite Dish" - An antenna device used for transmitting or receiving electromagnetic
waves, but which incorporates a reflective surface that is solid, open mesh, or bar figured and is
in the shape of a shallow dish, cone, horn, or cornucopia. For purposes of this Chapter only, a
satellite dish, which technologically constitutes an antenna as defined herein shall be deemed as
a separate and distinct antenna and shall be specifically regulated as such in this Chapter.
"Tower" - Any freestanding structure designed specifically to elevate an antenna, satellite dish
or similar apparatus.
2
%
(3) Building mounted sateiline dishes located within any Agricultural District ("A"), Estate
District ("E-). Residential District ('*R-1. R-2. R-3, R4, and R-5"); or Planned
Development District, within the area designated solely for residential uses under a
Planned Development Agreement ("PD'') shall not be larger than one (1) meter (thirty-
nine inches (39")) in diameter, and
(4) Building mounted satellite dishes and antennae located within any Agricultural District
("A"); Estate District ("E"), Residential District ("R-1, R-2, R-31 R-4, and R-5"); or
Planned Development District, within the area designated solely for residential uses
under a Planned Development Agreement ("PD") shall not be used for commercial
purposes.
C. Freestanding Sateflite Dishes. Freestanding satellite dishes shall be permitted in all zoning
districts, subject to the following requirements:
(1) Freestanding satellite dishes shall be located in the rear yard;
(2) .Accesson. equipment associated with a freestanding satellite dish shall be located
within the principal building or within an enclosure which is constructed of materials
and color scheme compatible with the principal building or within an equipment
encasement not exceeding 10 feet(W) x 10 feet(L) x 5 feet(H) in size;
(3) Satellite dishes and any accessory equipment enclosures shall meet the setback
requirements for accessory structures as set forth in this Chapter of the City Code,
(4) Satellite dishes and accesson; equipment enclosures shall not be located within any
utility or drainage easement; and
(5) Freestanding satellite dishes located within any Agricultural District ("A"); Estate
District ("E"); Residential District ("R-1, R-2) R-3, R4, and R-5"); or Planned
Development District within the area designated solely for residential uses under a
Planned Development Agreement ("PD") shall not be used for commercial purposes.
(6) Freestanding satellite dishes shall not exceed fifteen (15) feet in height.
D. Freestanding Towers and Antennae.
(1) Freestanding Towers and Antennae in Residential Use Districts. Freestanding towers
and antennae shall be permitted as an accessory use only in Agricultural Districts ("A"),
Estate Districts ("E"), Residential Districts ("R-1, R-2,. R-3, R4 and R-5"), and
Planned Development Districts within the area which is designated solely for residential
combination, provided the tower is designed to:
(A) Accommodate the applicant's antennae and at least one (1)
additional comparable antennae for other communication
providers;
(B) Accept antennae mounted at varying heights; and
(C) Allow the future rearrangement of antennae upon the tower.
(iii) one -hundred fifty (150) feet, measured from the base of the tower to
the highest point of the tower-antenna/satellite dish combination,
provided the tower is designed to:
(A) Accommodate the applicant's antennae and at least two (2)
additional comparable antennae for other communication
providers;
(B) Accept antennae mounted at varying heights; and
(C) Allow the future rearrangement of antennae upon the tower.
(b) All setback requirements for any accessory equipment building or structure
shall be met as set forth in this Chapter, provided the minimum setback distance
of the tower from any residential structure shall be equal to two (2) times the
height of the tower;
(c) The tower shall be located in the rear yard;
(d) The tower shall be self-supporting through the use of a design that uses an
open -frame or monopole configuration;
(e) Permanent platforms or structures, exclusive of the tower or antennae, that
increase off-site visibility are prohibited;
(f) Existing vegetation on the site shall be preserved to the greatest possible extent
practical;
(g) Accessory equipment associated with freestanding towers and antennae shall
be located within an equipment building constructed of materials and color
compatible with principal building and surrounding area or within an equipment
encasement not exceeding 10 feet(W) x 10 feet(L) x 5 feet(M in size.
39
(4) AD systems shall comply with the Minnesota Pollution Control Agency's Noise
Pollution Section (i�PC 1 and NPC 2), as amended, and
(_) Any wind energy conversion system which utilizes a propeller shall have neither a blade
rotation diameter ofgr eater than thirty-five (34) feet nor a blade arc less than thirty
(30) feet above the ground.
F. General Standards. All antennae, satellite dishes, towers, and wind energy conversion
systems shall be subject to the following additional requirements:
(1) Location and color shall be in a manner to minimize off-site visibility to the greatest
possible extent.
(2) Compliance with all applicable provisions of the City Code, including the provisions of
the State Building Code therein adopted, in addition to the requirements set out in this
Subdivision.
(3) No signs, other than for public safety warnings or equipment information, shall be
affixed to any portion thereof.
(4) No artificial illumination, except when required by law or by a governmental agency to
protect the public's health and safety, shall be utilized;
(5) The placement of transmitting, receiving and switching equipment shall be integrated
within the site, being located within an existing structure whenever possible; any new
accessory equipment structure shall be attached to the principal building, if possible,
and constructed of materials and of a color scheme compatible with the principal
structure and/or surrounding area or within an equipment encasement not exceeding 10
feet(tiND x 10 feet(L) x 5 feet(I-D in size.
(6) Accessory equipment or buildings shall be screened by suitable landscaping, as set forth
in this Chapter, except where a design of non -vegetative screening better reflects and
compliments the architectural character of the surrounding neighborhood;
(7) Building permits shall be required for the installation of building mounted satellite
dishes in excess of five feet in diameter, towers, and wind energy conversion systems;
(8) Structural design, mounting and installation of a tower, antenna or satellite dish which
requires a building permit shall be verified and approved by a qualified licensed
eneineer; and
7
� D
'1190
ORDINANCE NO. 2ND SERIES
AN ORDINANCE OF THE CITY OF EAGAN, MINNESOTA, AMENDING EAGAN
CITY CODE- CHAPTER ELEVEN ENTITLED "LAND USE REGULATIONS (ZONING)"
BY AMENDING SECTION 11.20 REGARDING ANTENNAE, SATELLITE D1SIJES,
WIND ENERGY CONVERSION SYSTEMS AND TOWERS; AND BY ADOPTING BY
REI=EU- NCE EAGAN CITY CODE CHAPTER 1 AND SECTION 11.99.
The City Council of the City of Eagan does ordain:
Section 1. EaJan City Code Chapter I l is ]lei y emended by changrrzg Section I I.20, Subd.
3(C)(5), to read as follows:
C. Accessory Uses. Within any Agricultural ("A") District, any accessory use
permitted an R -I District shall be pemlitted and a wind energy conversion system,
subim to the regulations thereof ill this Code, shall be permitted.
Section 2. Eagan City Code Chapter 1 I is herebyamended by adding Section 11 .20, Subd.
4(C)(7) and (8), to react as follo%�-s:
7. Building mounted antennae and satellite dishes, subject to the
reg*�rlations thereof v1 this Code.
S. Fieestandilr0 to«ers, subject to the regulations thereof in this
Code.
Section 3. Eagan City Code Chapter I 1 is hereby amended by adding Section 11.20, Subd.
5(C)(7) alid (8), to read as follows:
7. Building mounted antenna and satellite dishes, subject to the
regulations thereof in tlus Code.
S. Freestandi.n; towers, subject to tine regulations thereof irr tllis
Code.
Y/
Sec—
11Q11 4 E���1n City Code Chlpter• 1 l is hereby annended by cllarluln,
%(A), to read as follows: � a Section 11.20, Slrbd,
A. Permitted Uses. Withiri any Public Facilities District, no st;;rc,,;r�
]ar,d shall be used except for one of- more of the followin(T
ti or
b'v the CoUr1Ci1: Public so11c:ttres, parks, play�otrnds, carnIlses; rr uses
es deemed srrllilzlr
pools, tennis cotu-ts, golf courses, churcPles, school P grounds, s%%** ' i�l`�
arrerlrlae and satePlite dish, subject to the re, s, liosPrtals, and building rllounted
J , mations thereof in this Code.
* * *
Section 5. L-a`*an City Ccde Chapter ] ] is hereby amended 11
7(B)(3), to read as follows: Y adding Section 11.20, Subd.
�. Freestaradill to«er and wind<,
tO tP e reCLII ltiorls tilereofin this Code. energy conversion system, subiect
Sect-
-. L-a�an Citi Code Chapter 1 l is hereby amended b
9(D)(4), to read as fePlo%N•s: y adding Section 11.20, Subd.
* * *
4• BuPldin�, mounted an:enrla or satellite di;Pl, sub•ect
re=ulra;ons thereof i-1 this Code.
J to the�
Sector, 7. Eagan City Code Clla ter I1 is hereby a7P
IG(E)()), to read as follows: p .ended by addu-10 Section 11.20, Subd.
E. Pennitted Accessor}' Uses.
1 Btrildiny mounted antenna or satellite dish, stlbjeet
rerlIORL ons thereof m this Code.
to the
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Section S. Eagan City Code Chapter I I is hereby ameridcd by adding Section 11.20, Subd.1 6(C)(1$), to read as follows:
15. Freestanding tower or wind energy conversion system, subject to
the regulations thereof in this Code.
Section 9. Eagan City Code Chapter 1 l is hereby amended by adding Section 11.20, Subd.
17(D)(1), to read as follows:
D. Permitted Accessory Uses.
I. Building mounted antenna or satellite dish, subject to the
regulations thereof in this Code.
Section 10. Lagan City Code Chapter l 1 is hereby amended by adding Section 1 ].20, Subd.
13
to read as follows:
13. Freestanding tower or 'Hind enemy conversion system, subject to
the regulations thereof ill this Code.
Section I I. Ea�,an City Code Chapter l l is hereby amended by adding Section l 1.20, Subd.
to read as follows:
3. Building mounted antenna or satellite dish, subject to the
regulations thereof in, this Code.
Section 12. Eagan City Code Chapter 11 is hereby amended by adding Section 11.20, Subd.
22(D)(5), to read as follows:
Building mounted antenna or satellite dish, subject to the
regulations thereof in this Code.
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Sectic�rt 1 Ea_xan City Code Chapter 1 Ce
neral Pro%�isions and Der
r,itiori
Arpiicable to the Entire Cite Code lncludins: 'Pe:,alty for
• Violation and Section l l.;'?,
er2titled "Violation a .Misdemeanor" are hereby adopted in tlieu entirety by reference as
though reheated verbatim.
Section 14. Effective Date. This ordinance sliall take effect upon its adoption and
publication according to law.
ATTEST: CITY OF EAG A.N'
City Council
By: E. J. VanOverbeke By: Thomas A. Egan
Its: Clerk Its: Mayor
Date Ordinance Adopted:
Date Ordinance Published in the Leal I�e%�•sl)aper:
Date of AdN isoiy PlanniiiQ Commission Hearing:
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