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03/31/1996 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING Thursday March 21, 1996 5:00 P.M. I. ROLL CALL & ADOPTION OF AGENDA II. VISITORS TO BE HEARD III. REVIE14" PROPOSAL FOR THE COMPLETION AND OPERATION OF THE CAPONI ART PARR IV. OTHER BUSINESS V. ADJOURNMENT MEMO —city of eagan TO: HONORABLE MAYOR & CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: MARCH 18, 1996 SUBJECT: SPECIAL CITY COUNCIL MEETING TO CONSIDER PROPOSAL FOR THE COMPLETION AND OPERATION OF THE CAPONI ART PARK A meeting was held on Monday, February 5, at the request of Tony Caponi, with Mayor Egan, City Councilmember Hunter and members of the staff, including Assistant to the City Administrator Duffy, Director of Parks & Recreation Vraa and the City Administrator. Mr. Richard Schieffer, legal counsel for the Caponi Art Park Non-profit Corporation, was also present. It was proposed to Mr. Caponi that he prepare a specific proposal for both the completion and operation of the Caponi Art Park and present the same to the City Council for their review. A document was presented to both the City Council and the Advisory Parks, Recreation & Natural Resources Commission on approximately February 20 that outlined the history, the artist, philosophy of the Art Park, support from the City of Eagan, how the parcels would be defined, the current status and a specific proposal for both the completion and operation. The APRNRC has reviewed the proposal and identified the following four issues as summarized by the Director of Parks & Recreation: 1. Cost of land. 2. Concerns that the proposed development items, i.e. parking lot, etc., are in balance with natural amenities. 3. If 40 acres is acquired, will the additional 20 acres be preserved? 4. There is no language as to how disputes would be resolved regarding operations. In order to help focus on issues that need to be addressed on a greater macro basis, the proposal has been reviewed by the Administrator's office and the following list was compiled for discussion purposes: The amount of land, if any, to be purchased by the City. Mr. Caponi is proposing that the City purchase the entire 40 acres south of Diffley Road. 2. The cost of the land. Mr. Caponi is proposing a sale price of $1,800,000. This is equal to $45,000 per acre. 3. Should the purchase of this land, either total or in part, be proposed as a part of the Parks Bond Referendum? 4. If the land is purchased, does the City wish to contribute $270,000 to an "Art Park Improvement Fund" in order to construct an entrance and parking lot on the south side of Diffley Road? 5. If the land is purchased, does the City want to participate in determining the type and sequence of improvements? 6. If the land is purchased, does the City want to participate in determining the type of programming and activities to be held on the property? 7. If the land is purchased, does the City want to participate in the administration and operation activities of the Art Park? 8. How would the City's participation be guaranteed? 9. What guarantees are there that the total 20 acres to the north will be transferred to the non-profit corporation. Will this be a donation or are the Caponis expecting some sort of payment? What is included in the proposed "life estates" for Anthony and Cheryl Caponi and their joint descendents? 10. Is the City interested in the additional purchase of Remo Caponi's six acres for $270,000 ($45,000 per acre)? City Councilmember Wachter would like to take an opportunity after the Caponi's have completed their presentation of the proposal to share his historical perspective of the Caponi Art Park proposal. Enclosed and referenced as pages through is a copy of a memo the City Administrator prepared for City Councilmembers Awada and Masin dated March 20, 1995. City Councilmember Wachter's comments will build on information provided in the memo and presented from a one-page chronology as being prepared for Thursday's meeting. The Director of Parks & Recreation or City Administrator can provide additional information upon request by the City Council. 1SI Tr City Administ Attachment TLHlvmd MEMO —city of eagan TO: CITY COUNCILMEMBERS AWADA AND MASIN FROM: TOM HEDGES, CITY ADMINISTRATOR DATE: March 20, 1995 SUBJECT: CAPONI ART PARK Since reading Mr. Caponi's letter dated March 17, and speaking to each of you by telephone, I thought it would be helpful to research the City Administrator's files on the Caponi Art Park and search for some clarification of the issues raised in Mr. Caponi's letter. Some additional history is important to the overall development of the Caponi Art Park. My personal involvement with this matter has been limited over the past 5-6 years, at which time Ken Vraa was the lead staff person. His records are more complete and may need to be researched. In order to make the information helpful and meaningful, I attempted to address the chronology of the art park and make reference to a few attachments that I think would be helpful as we prepare for the meeting with the Caponis on Tuesday. o The oldest documents I have is 1) a letter from former Mayor Blomquist dated December 2, 1986, and that letter was addressed to Steve Wellington, Wellington Management Inc., asking if his company could help us organize the concept of a foundation; and 2) correspondence to the Chamber dated November 21, 1986. o On February 13, 1987, Mr. Caponi presented a written document entitled "Proposal for Sculpture Gardens". As a part of his proposal, he asked the City Council to create a foundation to work out procedures for the implementation of the project. Specifically, page 3 of the attachment outlines the proposal to the city. o On Tuesday, February 24, 1987, a joint meeting of the Advisory Parks Commission and City Council was held and action taken to hire S & B Properties to provide research and direction and how the city could proceed with some type of local non- profit organization that would raise the funds and actually administer the cultural gardens into the future on behalf of the City. A copy of that correspondence to Susan Sands, Mr. Caponi, and minutes are attached. The letter to Mr. Caponi dated March 9, 1987 specifically states, "...it is the consensus of both the commission and City Council that a not-for-profit foundation be organized and they would in turn raise Memorandum Page 2 March 20, 1995 private dollars for the acquisition and ongoing funding of the 'sculptural gardens'. Again, the city will act as a facilitator and help coordinate the activity. o S & B Properties coordinated land and art appraisers for the purpose of placing a value on the Caponi land and art during early 1987. At that time, the land and buildings were valued at $260,000, while the environmental land work (sculpture) ranged in value from $80,000 to $100,000. The value summary was presented to the City on June 1, 1987. There were several appraisers retained, three selected by Mr. Caponi, and one by S & B Properties. The results of the appraisals ranged dramatically for land and buildings; the suggested total value as stated was the recommendation by S & B Properties. A copy of their letter is attached. This letter preceded the value summary and is available for review if you so desire. Mr. Caponi was not in agreement with the value and recommendation suggested by S & B Properties. o The second part of S & B Properties' analysis was to complete a framework for pursuing a foundation. For a copy of a summary, refer to the attachment. This document was completed in early 1988. For a copy of a letter indicating final payment to Susan Sands of S & B Properties, refer to the attached letter. This letter addresses the fact that there are no public dollars available to acquire the land or art; however, the city would certainly commit employee resources for the purpose of pursuing foundation dollars or other mechanisms to finance the project. It was also indicated that this item is a low priority by the City Council in a recent strategic planning session. o A memo was sent to the City Council by the City Administrator dated May 10, 1988 that summarized a meeting that Mayor Ellison and Councilmember Wachter had with Mr. Caponi indicating that there is no city funding or departmental resources available for coordinating and maintaining his property or financing any operations. Also at that meeting, Mr. Caponi was encouraged to become the lead person and contact the necessary foundations and regional funding sources in an effort to formalize the art park project. A copy of the letter is attached. o On June 28, 1988, former Mayor Vic Ellison, at the direction of the City Council, provided Mr. Caponi with copies of a letter that expressed support and encouragement for the development of the art park that Mr. Caponi could use for his fund raising efforts. o At the same time, May 25, 1989, the Director of Parks and Recreation sent a lengthy letter to Mr. Caponi addressing the result of discussions the city had had with the Dakota County Parks Department, the likelihood of funding by the Met Council Memorandum Page 3 March 20, 1995 through the Open Space and Parks Commission; however, it was summed up that there were no funding avenues available through those units of government. Attached is a copy of that letter. o There is no documentation in the City Administrator's file between May of 1989 and April of 1990. A meeting was held at the Caponis home on April 26, 1990. For a summary of that meeting, refer to the attached memo. Mr. Capon! did ask the city to evaluate the possible acquisition of 40 acres south of Diffley as a part of the entire project. o The remainder of the documents were enclosed with Mr. Caponi's memo dated March 17 and distributed last Friday. The October 10 memo from the Director of Parks and Recreation addressed a report and request for formal action which led to the resolution. o As a result of the resolution, various persons including staff and City Councilmembers were asked to contact respective board members. The City Administrator did contact West Publishing, specifically John Nasseff, who expressed that they were not interested at that time. He has since followed up with West Publishing. Their answer is a consistent "no" to any involvement with either serving on the foundation or participating financially in the Caponi Art Park. Mr. Steve Rothmeier never returned phone calls. o The City Administrator recalls that during 1991, there was a consensus that it might be in Mr. Caponi's best interest that he pursue persons to serve on the foundation board and facilitate fund raising efforts. o Shortly thereafter, in late 1991 /early 1992, the special committee consisting of Councilmembers Awada and McCrea, along with staff, spent most of their time as a committee focusing on storm sewer alignment, tunnel, alignment of Diffley Road, the trails, etc. o In a memo dated June 19, 1992 from the City Administrator to Caponi Art Park file, it was suggested that Mr. Capon! secure an intern from Macalester College for the purpose of handling administrative items, such as coordinating corporate foundation contacts, contacts in the city of Eagan and other matters that would channel his energy toward developing the art park. It was also stated that staff should not be soliciting corporate dollars without specific direction by the City Council. That memo is attached for your review. Memorandum Page 4 March 20, 1995 The late 1980's were the busiest development years the city has experienced. Unfortunately, the Caponi Art Park, though endorsed by the city, had to compete with limited staff resources that was coordinating the development of parks, streets, subdivisions, and other community development projects. It seems clear from my research that the city has tried at different times to assist with the formation of a foundation with no success. The city has tried through their contacts to facilitate the formation of a foundation as has Mr. Caponi through his contacts, with little success. I cannot find any record whereby the city has suggested or given indication that city funds would be used for acquisition of the project. On the other hand, there are many letters and documents that indicate that there are no financial resources available for acquisition. However, staffing, though limited, and the assistance of S & B Properties as consultants, was allocated. The 1990 resolution committed the city to 'take a leadership role in the establishment of a public non-profit foundation to oversee the acquisition, development, and administration of the sculpture park in pursuit of the vision of Mr. Anthony Caponi." I believe we have tried to do this. In 1991, the city authorized the City Attorney to draft by-laws and articles of incorporation for the creation of a non-profit foundation. These documents were given to Mr. Caponi for his use in establishing the foundation. Copies of these documents are available for the Council's inspection. The city has consistently supported the concept of the Art Park. However, as you can see from the attached documentation, Mr. Caponi was advised throughout the process of the limited resources that the city could contribute to the process. As you can see, some funds and an enormous amount of staff time have been contributed to the project to date. If the Council would like further information on any item prior to the meeting tomorrow night, please contact Assistant to the City Administrator Duffy or me. C City Administrator TLH:DLP Attachments