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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 2 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. 3 V,3 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: 4 qy