04/16/1996 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
Tuesday
April 16, 1996
5:00 p.m.
Community Room
I. ROLL CALL & ADOPTION OF AGENDA
Il. VISITORS TO BE HEARD
III. CAPONI ART PARK PROPOSAL
IV. OTHER BUSINESS
V. ADJOURNMENT
MEM
—city of eagan
TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: APRIL 12, 1996
SUBJECT: CAPONI ART PARK PROPOSAL
Background
Since the City Council workshop that was held onThursday, March 21, for the purpose of
reviewing a proposal for the completion and operation of the Caponi Art Park as submitted
by Anthony and Cheryl Caponi, two meetings have been held with the Caponis and staff.
The Caponis, both Tony and Cheryl, along with their attorney, Dick Schieffer, Director of
Parks and Recreation Vraa, Assistant to the City Administrator Duffy and City
Administrator Hedges have collaborated to address five concepts as directed by the City
Council at the March 21 workshop.
Policy Consideration
The range of concepts were prepared to facilitate a public policy outcome for the
acquisition of a portion of the Caponi property. The upcoming park referendum is planned
as an opportunity for the community to acquire additional park land open space. The
public policy question regarding the Caponi property is whether the south forty acres
should be acquired as park land/environmental open space. Should the City purchase the
land, at a fair market value, with the understanding there is no commitment to subsidize
the Art Park? The acquisition is clearly a land preservation that connects Patrick Eagan
Park and the Lexington Diffley Park for hiking, cross country skiing and other public uses,
The acquisition of this land would be analogous to the City's acquisition and preservation
of the Holtz Farm. The land is preserved for future use. Future development and
programs can be determined and developed at any time in the future when financially
feasible, but the land is safe because "we have the farm."
If the City did acquire the Caponi land as at a special use park land, it would be owned for
that purpose and the land would be maintained as is any other park land. We would not
develop it or take part in any program operations.
Attachments
The attached concepts raise at a spectrum of public policy considerations ranging from
continuation of non-financial support to acquisition of 40 acres of the Caponi property as
park land as part of a community referendum. Those concepts are listed on pages
through 2, referenced as concepts z through v.
Also enclosed on pages -�> through `{ is at a memo from Mr. Schieffer clarifying
the Caponi proposal. A pro formalcost analysis was prepared by Cheryl Caponi and is
enclosed for Council review on pages S through _<,� .
City Administrator
Attachments
CAPONI ART PARK
Concept I:
The City would continue its support of the Caponi Art Park by resolution and correspondence. The
City would present a modified version of the Caponi proposal to the public at a scheduled public
hearing. At that time, following deliberation, a decision would be made whether the acquisition of
the southern 40 acres would be placed as a question on a future bond referendum. This acquisition
would be considered at fair market value.
Discussion: This concept would allow the residents of Eagan to decide whether they wanted to
spend tax dollars to acquire the land as park land/environmental open space. The Caponis would
donate 10 of the north 20 acres (and later the remaining 10) to the non-profit corporation and
contribute partial funding for the construction of a parking lot. Development of a sculpture garden
would continue on the north 20 acres and the non-profit corporation would provide arts programming
on the 60 acres.
Concept 11:
The City would continue its support of the Caponi Art Park by resolution and correspondence and
by acquiring 20 of the south 40 acres for park land/environmental open space and would lease the
remaining 20 from the Capons until the non-profit corporation raised enough funding to purchase
the 20 leased acres. This acquisition would be considered at fair market value.
Discussion: This would protect the 20 acres the City did not purchase until funding was raised.
However, the City could not use bond funding for the lease portion of this concept. Funding would
have to be found from another source. finless and until all 40 acres were purchased, it is unlikely
that the Caponis would be able to afford to fully fund the parking lot commitment and develop the
sculpture garden. Assessments and taxes might require partial sale to a developer. Donation of land
to the non-profit corporation might be delayed.
Concept III:
The City would continue its support of the Caponi Art Park by resolution and correspondence and
by acquiring 20 acres of the south 40 acres as parkland/open space This acquisition would be
considered at fair market value.
Discussion: Because of the topography. it might be difficult to separate the 40 acres into two 20 acre
parcels, one of which would be sold for development. Because of taxes and assessments, it is likely
that the Caponis would need to sell 20 acres for development It is unlikely the Caponis would be able
to afford to fully fund the parking lot commitment and develop the sculpture garden. Assessments
and taxes might require partial sale to a developer. Donation of land to the non-profit corporation
might be delayed.
it
Concept IV:
The City would continue its support of the Caponi Art Park by resolution and correspondence and
would enter into a purchase agreement for 20 of the south 40 acres at a fair market value. The
purchase agreement would be subject to the Caponis raising money to secure the ownership of the
remaining parcels through corporate donations, regional fund raisers, grants, etc. The time frame
would be 24 months, May 1, 1996 through April 30, 1998.
Discussion: The City could not use bond funding for this concept. Funding would have to be found
from another source. Unless and until all 40 acres were purchased, it is unlikely that the Caponis
would be able to afford to donate the north 20 acres to the corporation or their proposed partial
funding to construct a parking lot. In addition, because of taxes and assessments, it is likely that the
Caponis would either need to sell all 40 acres for development in order to fund the north 20 acres or
would sell all 60 acres for development.
Concept V:
The City would continue its support of the Caponi Art Park by resolution, correspondence, and other
non-financial enhancements. This policy is consistent with the partnership the City and the Caponis
have shared for more than ten years. Acquisition, capital improvements, programs and other
operating expenses will be the responsibility of the Caponis and/or the non-profit corporation.
Discussion: Because of taxes and assessments, it is likely that the Caponis would either need to sell
all 40 acres for development in order to fund the sculpture garden and programs on the north 20 acres
or would sell all 60 acres for development.
*R 10 '96 04:16PM JOHNSON & WOOD PA
x3xo
TO: THOxAS HBDGZ5 r CITY liANAGER
CITY OF RAGAN
FROM: RICHARD 17. BCSIEFFERr BSQ. epa)
R$: CLARIFICATION OF CAFonj LUD pROFOSAL
DATE: April 9. 1996
P.2
1) LAAd east. The selling price of the land could be determined
by three appraisers, one Selected by the Seller, one selected
by the Buyer, and a third selected by the two appraisers. The
parties could decide whether this could be a binding
arbitration or whether appeal could be had to District court.
2 ) In the BYRAt o! the Di"C „f; !t o f the Um -Pref f3orncra
Concerns expressed about what ha f
Opens to the land north of
Diffley Road if the non-profit corporation fails or dissolves,
are controlled by Minnesota Statute chapter 317A. Section 811
requires notice to the Attorney General before transfer of
substantially all of the assets, or a dissolution. Normally,
however, the assets are transferred to another non-profit
corporation. Under 5813 the Attorney General has the power
to supervise and investigate these dissolutions or transfers.
Under 5735(2) assets may not be diverted from the use and
Purpose for which they were received and held or as intended
by the original Donor. While business corporations distribute
assets to their shareholders, non-profit corporations are
prohibited from distributing assets to their members and
therefore the assets must be distributed in accordance with
statute.the ffl land
ofit
corporation by Mr. Caponicould nod
t bereturn d to himifted to the upondissolution. p
3 )�tf_.jh4 Art It is helpful to
define some terms which are often used in discussion. Some
of those definitions are as follows:
A. ,Pr2—Programs are educational or cultural events
produced for the benefit of the public. Programs will
be designed, produced, and financed solely by the non-
profit corporation. Programs may be designed -to -order
by school districts, by the City of Eagan or other
municipalitles, by other cultural organizations, as long
as the design, production and financing is done by the
non-profit corporation. Fees will be charged for these
programs to help offset their cost.
04-1n—aa ns.,oz
P.3
APR 10 196 04 :16PM J01 -BISON & WOOD PA
B. main nt�lles�._ Park maintenance includes activities
necessary Lor the physical functioning of the p
as snow flowing and maintenance of parking lots and
trails, providing sanitary facilities, maintenance of
grass and tress, and similar maintenance activities.
These costs would be borne by the city on park property
south of Diffley Road
Di and
by tthe
Roanon-profit corporation,
on property north of
C. 2S�Utioae. Park operations include PhYGioal
arrangements necessary to carry out prograan►pwithin amaay
upon existing park facilities, e•g"
require the Get up of one or more tents for cover in case
of rain. The rental for the tents and the labor Por
their erection is a park operation and will be included
as a program cost to be borne by
profit
corporation.
D. doom___ At. Development means the phyei.cal c ns 6heiter
uction
of public improvements such as parking lots, p
ark ngs, and
buildiother physical facilities (not including
art worts or sculptures). The non -prof it corporation
The
would tinance all development north of Diff 1dR reach Th
non-profit corporation and the city
specific cost sharing agreement on each development whish
occurs on the property south of Diffley Road with the
exception that mit ixequir�ed for the parking lotal contributions of $27Q $270,000
from each party
The caponi Art Park operating budget for
4) gperatinct�3�. roved at its December, 1995 Board, of
1996 which was app
Diredt6tg Meeting is attached.
oni Art Park
Ir 6124544330 MG4111 /96 0,10:13 AM D2/3
CAPONI ART PARK OPERATING BUDGET
Fiscal Year Ending December 31, 1996
EXPENSES
Personnel
Salary and Wages
Artistic Director
Business Manager
$ Donated
Artist in Residence
Donated
Park Staff — volunteers as needed
Donated
Program Coordinator — part time
Donated
Artist's Apprentice (part-time seasonal—$6 x 420 ha.)
6,000
2,500
Maintenance (part-time seasonal—$6 x 580 hrs.)
Program Staff — Summer Art Camp teachers ( $17 70
3,500
x hr)
Assistant ($6 x 70 hrs.)
1200
420,
FICA, etc.
Health Insurance (full-time year round only)
1,1803,400
Consultants
Fund Raising
200
750
Legal
7,500
Total Personnel
2.0
Scholarships
$ 27,700
Supplies and Services
Advertising and promotion
Grounds It'Iaintenanee — Equipment, Materials, repairs & fuel
750
1,100
Improvements
Insurance (liability & property)
3,500
500
Office Copying
$00
Postage
200
Printing
300
Supplies & equipment
300
Utilities (telephone, electricitt, & gas)
300
Supplies and Services
--L=Total
$ 8,250
Special Events
Artistic Personnel
Supplies
3,700
Equipment Rentals
160
Publicity & Promotion
180
Shuttle Buses
2,490
Refreshments
360
Total Special Events
---2 0
$ 7,090
Summer Art Camp
Registration and Administration (S3 x 75 students)
230
ISD 196 Coordination time
Student art materials (S10 x 75 students)
200
750
Equipment Rental
Flyers, Poster, ISD 196 Summer Catalogue
250
Scholarships
300
Total Summer Art Camp
500
$ 2,230
TOTAL EXPENSES
$ 45,270
6124544338 04-11-96 10:13AM P002 #07
CaponiAnPark x'612-454-4339 104111/96 010:13AM X313
CAPONI ART PARK OPERATING BUDGET
Fiscal Year Ending December 31, 1996
INCOME
Earned Income $ 1,000
User fees & Contracts 3.750
Summer Art Camp Tuition $ 4,750
Total Earned Income
Contributed Income:
900
Cash
Contributions from Individuals
4,750
2,000
Community Fundraising
5,000
Local Corporations
1,500
Local Service Organizations
2,000
Metropolitan Regional Arts Council
1,000
Youth Connection Council ISD 196
750
Foundations pending
3,000
Eagan Foundation
2,000
James R. Thorpe Foundation
2,000
St. Paul Pioneer Press
2,000
Target Stores
8.000
Other Foundations & Corporations
$ 33,225
Total Cash
In-kind Contributions
900
City of Eagan — Newsletter etc.
1,000
Eagan Convention & Visitors Bureau
450
Eagan Area Community Education ISD 196
Macalester College Off- Campus Work Study Program/Internship
2,500
Minnesota Valley Transit Authofity
Local Business:
200
Knox Lumber
750
Fischer Sand &Aggregate
100
Kinko's
50
Hardware Hank
100
Superameriea
1.000
Other Businesses
$ 7,410
Total In-kind Contributions
$ 40,660
Total Contributed Income:
TOTAL INCOME $
45,410
6124544338 04-11-96 10:13AM P003 #07