03/20/1990 - City Council RegularAGENDA
REGULAR MEETING
EAGAN CITY COUNCIL
KAGAN, MINNESOTA
MUNICIPAL CENTER BUILDING
MARCH 20, 1990
6:30 P.M.
I. 6:30 - ROLL CALL & PLEDGE OF ALLEGIANCE (BLUE)
II. 6:35 - ADOPT AGENDA & APPROVAL OF 14INUTE9 (BLUE)
III. 6:45 - DEPARTMENT HEAD BUSINESS (BLUE)
A. PUBLIC WORKS DEPARTMENT
q� t 1. Receive Bids/Consider Disposition of Surplus Property (House on Northeast Corner of
Cliff & Pilot Knob Roads
2. Request for Variance to Working Hour Restriction (Coventry Pass Grading Permit)
�B. PARKS & RECREATION DEPARTMENT
1. Trapp Farm Park, Land Acquisition
2. Dakota County Trails Proposal/Funding & Maintenance
IV. 6:55 - CONSENT AGENDA (PINK)
A. PERSONNEL ITE4S
1 B. DECLARE 1985 Ford Custom Victoria as Surplus Property and Authorize Sale
111C. DECLARE Two (2) K-55 Moving Radar Units as Surplus Property and Authorize Sale
D. RECOGNIZE $700 Cash for Trash Winner, Malcolm Heinle
lE. CONTRACT 90-2, Approve Plans and Specifications/Authorize Advertisement for Bids, Park
Shelter Buildings - Ohmann, Bridle Ridge, and Notthview (Blackhawk Deleted)
F. PURCHASE of Replacement Vehicles for Parks and Recreation Department through Hennepin
County Pufchasing/Authorize Advertisement for $ids, Dump Box for 1 -Ton Chasis
G. PROCLAMATION, Earth Day, April 22, 1990
I QH. RECEIVE Bids/Award Sale, Parks Maintenance Tractor
j I. FINAL PLAT, Duckwood Square
°S) J. FINAL PLAT, Frank's Nursery & Crafts Addition
K. FINAL PLAT, Park Center
L. PROJECT 452R, Receive Final Assessment Roll/Schedule Public Hearing (Pond AP -50, Storm
+ Sewer)
M. PROJECT 542, Recei-e&-.Final Assessment Roll/Schedule Public Hearing (Alden Ponds -
Streets and Utilities).:
N. PROJECT 473, Receive Final Assessment Roll/Schedule Public Hearing (Pilot Knob Road,
Trunk Storm Sewer - Miscellaneous Objections)
0. PROJECT 494, Receive Final Assessment Roll/Schedule Public Hearing (Wescott Road,
Streets & Utilities - Miscellaneous Obj6eti6iti§)
7� P. PROJECT 491, Receive Final Assessment Roll/Schedule Public Hearing (Eagan Hill Farms,
�• Trunk Utilities - Miscellaneous Objections)
1 Q. PROJECT 505, Receive Final Assessment Roll/Schedule Public Hearing (Country Hollow,
Trunk Utilities - Miscellaneous Obj6ction6)
R. CONTRACT 89-14, Final Payment/Acknowledgement of Completion (Coachman Water Treatment
Plant - Dehumidification)
S. CONTRACT 9044, Approve Resolution Restricting On -Street Parking (Rahn Road - Diffley
to Beau De Rue)
V. 7:00 - PUBLIC HEARINGS (SALMON)
A. RESOLUTION/Development Program and Tax Increment Financing Plan for Development
• District No. 3, Tri -Land Properties/Ice Arena Project and a RESOLUTION/Development
Agreement for Development District No. 3
VI. OLD BUSINESS (ORCHID)
EXTENSION, Preliminary Plat for Country Hollow 2nd Addition
f-SPI B. CONDITIONAL USE PERMIT, Xaviers Restaurant to Allow On -Sale Liquor in a CSC District,
1260 Town Centre Drive/Town Centre Shoppes
LICENSE, On -Sale Liquor License Application, Xavier Incorporated
V I. NEW BUSINESS (TAN) Final Plat
\3 AEXTENSION of Eagan Evangelical elical Church, 581 Atlantic Hills Drive
. g
B. RECOMMENDATION, Airport Relations Committee, Appointments to Corridor Blue Ribbon
Panel
s 7 ' DETERMINATION of Similar Use, Blackhaw% Plaza/Haven Enterprises, Teen Club in NB
(Neighborhood Business) District
D. SPECIAL USE PERMIT, Praise Fellowship Church/Pastor Arden Loven, to Allow a Church
in a LI (Light Industrial) District Located At 3103A Sibley Memorial Highway (Lot 1,
C Block 1, Eagan 13 Industrial Park
E. CONDITIONAL USE PERMIT, Federal Land Company, to Allow an Automobile Rental Facility
1 in the Bicentennial Planned Development Located on Lot 1, Block 1, Bicentennial lst
Addition and Lot 1, Block 1, Bicentennial 2nd Addition, South of Yankee Doodle Road
\ an dEast of Federal Drive in NE 1/4 of Sec 16
�Q F. PRELIMINARY PLAT, Gopher Eagan Industrial Park 3rd Addition/Gopher Smelting Co, Inc,
.1 V for Two Lots on 7.5 Acres of PD/LI (Planned Development/Light Industrial) Zoned
Property Located North of Yankee Doodle Rd, East of Highway 149 in SE 1/4 of Sec 12
VIII. ADDITIONAL ITEMS (GOLD)
f
IX. ADMINISTRATIVE AGENDA `(GREEN)
X. VISITORS TO BE HEARD (for those persons not on agenda)
XI. ADJOURNMENT
MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: MARCH 15, 1990
SUBJECT: AGENDA INFORMATION FOR MARCH 20, 1990 CITY COUNCIL
MEETING
After approval is given to the March 20, 1990 City Council agenda and regular meeting
minutes for the March 6, 1990 meeting, the following items are in order for consideration.
�EF,�R.T1VI°'I`
A. PUBLIC WORKS DEPARTMENT
Item 1. Receive Bids/Consider Disposition of Surplus Property (House on Northeast
Corner of Cliff & Pilot Knob Roads) --Recently, the City acquired the house and related
property located in the northeast corner of Cliff and Pilot Knob Roads from Dakota
County for incorporation into the Joseph Connolly Addition which will accommodate the
construction of the City's new Water Treatment Plant. In order to proceed with the
construction of this facility, it is necessary to remove this house. Subsequently, the Council
authorized staff to proceed with the formal advertisement for competitive bids for the
disposal of this structure.
At 10:00 a.m. on March 8, formal bids were received for the removal of this structure.
Enclosed on page _jv is a bid tabulation for the only bid received. Although the bid
is unusually low, it will at least produce some revenue for the City and eliminate the
occurrence of any expense for the removal of this structure. This facility has been offered
to all other City departments with no other alternative uses being identified. Therefore,
it is recommended the Council accept this bid and award it to Otting House Movers.
ACTION TO BE CONSIDERED ON THIS ITEM: To receive the bids for the removal
of surplus property (house on northeast corner of Cliff and Pilot Knob Road) and award
the contract to Otting House Movers for $375.
BIDS FOR REMOVAL OF HOUSE
LOCAM AT
4590 PILOT "On ROAD
EAGAN Mt
PROJECT 948
CONTRACTOR TOTAL BASE BID
1. n_'j'T IIJG ease Aowews A 375, by ,
0
3.
4.
to# bID 4 3 S, d a
21.
Agenda Information Memo
March 20, 1990, City Council Meeting
Item 2. Request For Variance To Working Hour Restrict'on (Coventry Pass Grading
Permit) --The City has received a letter enclosed on page from Enebek Construction
Company requesting a Variance to City Code Section 4. i0, Subdivision 5B, which will
allow them to continue their earth moving operations beyond the hours of 7:00 a.m. to
7:00 p.m. presently allowed by Code.
Although the time frame to complete the entire operation will run from approximately
April 16 through July 27, the extended working hours would incorporate 1-2 weeks in
April and 1-2 weeks in late June. This schedule is necessary to comply with a very tight
time frame for the reconstruction of the runway extension at the airport. Due to variables
associated with weather and other construction operations at the airport, the contractor
cannot be more specific to the time frame of the extended working hour request.
Therefore, he is requesting that the City Council grant this Variance with the final
approval to be issued administratively once detailed time frames have been determined.
Enclosed on page is a map showing the route that the trucks will be using in
transporting this excess material to the airport. The site of the excess material is located
adjacent to the Inver Grove Heights corporate border and the haul route will bring empty
trucks through Eagan to be filled and then exit the site through Inver Grove Heights onto
T.H. 149 then to the airport. There should not be any impact to local City streets due
to the fact that the trucks will be empty as they move through Eagan. Also, the location
of the earth moving operation is fairly well distant from any existing residential property.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve a Variance to Subdivision
Ordinance 4.30, 513 for Enebek Construction Company to allow 24-hour operations within
the Coventry Pass for two separate two-week periods to be defined by City staff between
April 16 and July 27, 1990.
3
March 7, 1990
RECEIVED MAR 7 1990
cuBan consTRUCTion company
P.O. Box 458 . Northfield, Minnesota 55057 • 507-645-8962 612-333-1307
Mr. Tom Colbert
City Engineer
3795 Pilot Knob Road
Eagan, Minnesota 55122
RE: Coventry Pass
Dear t1r. Colbert;
We would like to request the approval of extended working hours on the Coventry
Pass Project in the City of Eagan, for the purpose of removing excess material.
We ask that working hours be extended to 24 hours per day, excluding Sundays,
from April 16, 1990 to July 27, 1990. Our schedule at this time really only
reflects one to two weeks in April and one to two weeks in late June of working
24 hours per day. The remaining work would be done during normal work hours of
7:00 A.M. to 7:00 P.M.
The work during extended hours would be as follows:
A. Truck haul route from Hwy 1149 south on Dodd Road, approximately
one-half mile, to the Coventry Parkway entrance of Coventry Pass.
Trucks would enter here and exit directly to Hwy #149.
B. A truck loading operation in Coventry Pass located 1400' S.E. of
the intersection of Dodd Road and Coventry Parkway and 1600' from
the nearest resident.
Thank you for your close attention and consideration of our request. Please feel
free to call for any further information concerning our request.
Sincerely,
Dave Klee
Project Manager
"An Equ 1 Opportunity Employer"
TWIN Oft
SE
.4*
Agenda Information Memo
March 20, 1990 City Council Meeting
B. PARKS AND RECREATION DEPARTMENT
Item 1. Trapp Farm Park, Land Acquisition --The Director of Parks and Recreation,
Ken Vraa, and Brad Swenson of Tri -Land Development Corporation have been meeting
to discuss possible alternatives for acquiring land adjacent to Trapp Farm Park which
had been considered part of that park until a land survey was recently undertaken. The
land in question concerns forested parcels at the top of the sledding hill in Trapp Farm
Park. The Director of Parks and Recreation is planning to meet again with Mr. Swenson
on Friday, March 16. Further information regarding this item will be furnished with the
Additional Information packet on Monday.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve, deny or require further
study for proposals for obtaining land for Trapp Farm Park.
Item 2. Dakota County Trails Proposal/Funding and Maintenance --At its March 8 regular
meeting, the Advisory Parks and Recreation Commission discussed a proposal with the
Dakota County Board of Commissioners regarding the change in the current agreement
for the construction and maintenance of county trails. The Director of Parks and
Recreation is seeking a response from the Council which he can commun to to the
Board of Commissioners by April 2. Attached on pages 7through is a memo
from Director of Parks and Recreation Vraa regarding this item, including an attachment
containing the information furnished the Advisory Parks and Recreation Commission for
its March 8 meeting.
ACTION TO BE CONSIDERED ON THIS ITEM: To provide direction to the Director
of Parks and Recreation for a response to the Dakota County Board of Commissioners
regarding a change in the current agreement for the construction and maintenance of
county trails.
A,
MEMORANDUM
TO: TOM HEDGES, CITY ADMINISTRATOR
j FROM: KEN VRAA, DIRECTOR OF PARKS & RECREATION
DATE: MARCH 13, 1990
RE: TRAILS - DAKOTA COUNTY TRAILS PROPOSAI,AGREEMENT
REVISION
BACKGROUND
The Advisory Parks and Recreation Commission, at its March 8th meeting, discussed a
proposal of the Dakota County Board of Commissioners regarding a change in the current
agreement for the construction and maintenance of County trails. (For additional
information - See attachment prepared for the commission packet).
Dakota County is looking for a formal response from the different cities in the County
regarding its suggestion for a change in the location/funding and maintenance formula
currently in effect.
The Commission discussed the County resolution and the various alternatives that are
available for consideration - if a change were to come about. They had the following
comments.
The Commission was supportive of staff appraisal which had objected to changes in the
plan. The following are some of the objections:
1. The County Bikeway Plan is just now coming together and is providing the
transportation opportunities originally envisioned years ago. A change from off
road trails to paved shoulders is premature in that the results of county trails
construction have not been evaluated.
2. There is an issue of "fairness" between those communities that have had trails
constructed under one formula and a change to a "new" formula for the remainder
of trails construction for other communities.
Commission members disagreed with the County's premise of having trails on road
shoulders for use by accomplished bicyclists so that they can travel faster; because this
would put the recreational bicyclists at a greater risk.
1
TRAILS
PAGE TWO
MARCH 13, 1990
It was reasoned that on high traffic County roads, shoulder trails would be used
it would put younger, inexperienced bicyclists in a jeopardy; less as
p
allow younger family members to be placed at risk with fast moving trafficnot
ant to
probably not allow their children to use the shoulder trails. The non -experienced bicyclists
would
(the non -touring biker) prefers the off-road trails for safety reasons. The bike o lists
user finds the off -trails slower than shoulders, and is comfortable merginginto traffic
touring
However, safe should take reference to s eed as the ob'ective of gik .
Pro ram. e Trails
Members felt that paved shoulders may work in rural areas in the Countyin which
frequency of use by younger children was small and low traffic volumes h
weret typical. the
Here, shoulders may serve a role and purpose. However, in urbanized section tical.
County, or where urbanization is eminent, or where there may be a hi s tof
r the
h bik
generator; shoulder trails are not desirable. g e traffic
In regards to changing "maintenance responsibility" several question arose. There
should
be clarification as to "who" (if the County were responsible), "how well" would the
and "what" would be included in the maintenance, i.e., sweeping, seal coating, mowing it
,
boulevards? g g of
The Commission recognized that there would be a need for additional discussion
between
cities and the county. They are recommending a shift in the costs and maintenanceto
the County under the 2A alternative; (if changes are forthcoming) provided that ag's
current Maintenance Plan for trails is kept in place. Eagan
FOR COUNCIL ACTION
The County is looking for a response to the resolution pertaining to trails; the
should adopt a position and communicate this to the Coun Council
best be done through the office of the City Administrator/Director i ofcParks n might
Recreation, due to the likelihood that there will be a need for further discussions.
and
County is hopeful that all communities can respond by April 2nd, ns. The
KV/bis
MAINTENANCE AGREEMENT FOR SEPARATED COUNTY BIKE PATHS
BETWEEN THE COUNTY OF DAKOTA AND
THE CITY OF
THIS AGREEMENT, made and entered into this day of
19 , by and between the County of Dakota,
hereinafter referred to as the 'County•, and . the City of
hereinafter referred to as the "City".
WITNESSETH:
WHEREAS, the parties desire to tater into an Agreement
relating to the maintenance of County bike paths located within the
corporate limits of the City and constructed in'accordance with the
Trails policy Plan for Dakota County as adopted by the County board
of Commissioners on June 8, 1982, (hereinafter referred to as the
Trails Policy.Plan) and as may be amended from time to time by the
County upon the terms and conditions heieinafter set forth.
Now$ TWE1 roxr, -the patltarf-&It" It - follows:
1. Tie County' '"i •ebhitruet �-Mp permit • t4e City to
construct separsted County bike paths within the corporate limits of
the City along County roads or City street@ in accordance with the
Trails Policy Plan.
3. Following construction, the City will maintain such
separtted County bine p&thi, iozvb .et within Ghe errpork.te limits of -
the City in accordance wiri, the terms and con6itions of this
4greement. In regard to County built bite paths, the county will
provide the City with a tlotiee of Completion and a set of plans pf
each of the above County bike path segments, upon receipt of which
the City's maintenance responsibilititt bertunder •hall commence.
In regard to County bike paths oonstrupteo ky the City, the City's
maintenance tfsponaibilities hereunder will oosnenee upon
pompletion of such Capstruetion.
�. -the uaint*asprt to, b_ 'Pi cloriaa4 t6y the- Cl'ty on the
aforesaid aepit aEe bika paths iif -
A. Surface patching, tdge rarpairs And cleaning of
the bike path as necessary to provide a smooth, We and usuable
surface.
B. seal coating as necessaLr
• structural deterioration.
An alternative method may be used if
approved by the County Highway Department.
C. Maintaining visible pavement markings and
Signs. ■aterials, supplies,
D. furnishing all labor.
lot the performance of all and any
tools and other items necessary
of the work provided for in this Agreement.
4. All materials used by the City in the p
erfocmance of
the work under this Agreement shall conform to the requirements of
MN/DOT specifications• g
a ree
g, The County Engineer together with the City may
as to the scope and time schedule of maintenance work that needs no
°
of
he
be done to insure the safe condition
bla timebikepath.
the amount in
agreement can be reached within a reasonable
the City may have the
dispute exceeds $2,000.00, the County ane!, which panel
issue(s) in dispute heard by an arbitration p
and make findings and recommendations
shall hear the dispute
ding to the Uniform
concerning the dispute accorArbitration Act,
Minnesota Statutes Chapter 572, provided that the City has presented
its dispute to the County Board before invoking the arbitration
be appealed to a
provisions of this paragraph. The decision may
court of competent jurisdiction. The County
and the City shall each
hoose one arbitrator. The two arbitrators chosen shall confer and
e Anel.
jointly select a third arbitrator to complete the p
All costs associated with the arbitration process shall
be borne equally by the parties unless the non -prevailing patty
al from the arbitration
fails to comply with or !ails to take appeal arty
the #vent t
panel's decision. hst the non-prevaiing P
in
eats from the arbi�tr�ation panel's
neither cONgies with nor app decision, the non-
decision within thirty (30) days of said
prevailing Patty
shall'be solely responsible for all reasonable
but not limited
costs associated with the arbittationdifcoiy`u�fi,arbitration.
to, reasonable Attorney's
fees ineurrlt
page 2 of 4
ko
All costs of maintenance shall be the responsibility of
the City.
6. This Agreement shall be in force and effect for the
life of the bikeway facilities, provided that its provisions may be
reviewed at any time, but no later than fifteen (15) years, to
determine if any changes are necessary.
7. Plans and specifications shall be approved by the -
duly approved representative of the City or local township prior to
construction of any trail covered by this Maintenance Agreement.
8. yor the purposes of this Agreement, the City shall
be deemed to be an independent contractor and not an employee of
the County. Any ,and all agents, servants or employees of the City
or other persons, while engaged in the performance of any work or
services required to be performed by the City under the terms of
this Agreemnt, shall not be considered employees of the County and
any and all claims that may or* might arise on behalf of the City,
its agents, servants or employees as a consequence or any act or
omission on the part of the City or its agents, servants, employees
or other persons shall in no way be the obligation or responsibility
of the County.
9. The City further agrees to defend and save the
County harmless from any claims, demands, actions 'Or causes of
action arising out of any act or omission on the part of the City or
its agents, servants or employees in the performance of or with
relation to any of the aiork or services provided to be performed or
furnished by the City under the terms of this Agreement.
10. The County agrees to defend and save the City
harmless from ariy claims, demands, actions or causes of action
arising out of any act or omission on the part of the County -or ifs
agents, servants or employees in the performance of or with
relation to the County's design and'conatruction of the bike paths
I.
or to any other work or services perfoteed by the County under the
terms of this Agreement.
11. Any alteration, variation, modification or waiver
Page 3 of 4
of the provisions of this Agreement shall be valid only after it
has been reduced to writing and signed by both parties.
12. This Agreement shall constitute ' the entire
agreement between the parties and shall supersede all prior oral or
written negotiations.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed.
Approved as to form: COUNTY OF DAKOTA
G. -f, -a
ss stent County Attorney Date
By
Approved as to execution: Cane Atkins, C a rman
Board of Commissioners
Date of Signature
Assistant County Attorney Date
Approved by Dakota County Board
Resolution No.
This instrument drafted by: JCB
Dakota County Attorney's Office
Dakota County Government Center
Hastings, Minnesota 55033
Telephone: (612) 437-0438
Attest
Carl D. On sc u , Xuditor
Date of Signature
CITY OF
By
Mayor
Date of Signature
By -
C ty Manager/A m n strator
Date of Signature
By
clerk
Date of Signature
C-81-200 page 4 of 4
bm/m
I LW
AKOTA COUNTY JEFFREDIREC COONNELL
D
DEPARTMENT OF PLANNING A PROGRAM MANAGEMENT (612) 431-1158
7300 WEST 147th STREET, SUITE 4503 APPLE VALLEY, MINNESOTA 5!
MEMORANDUM
TO: Parks an Recreation Directors
'k
may: Allen Moe, Program Manager
DATE: February 1, 1990
SUBJECT: Meeting on Changing the County Funding Formula and Joint
Powers Agreement for Bikeways
I would like to invite you to a meeting on February 8, 1990 at 1:00 p.m, in
the new Lakeville City Hall, 20195 Holyoke Avenue. The purpose of the meeting
is to discuss funding options, joint powers agreement, and standards for
bikeways in Dakota County.
During 1989, the County Board requested a review of the County Bikeway System
Plan by the County Planning Advisory Commission (PAC). The PAC conducted a
review of the Plan and held two public informational meetings last summer.
The PAC review concluded with recommendations to the County Board for the
provision of both paved shoulders and off-road paths for bikers. Since
receiving the PAC's recommendation, the County Board's Physical Development
Committee has directed staff to review, with cities, a change in the County
funding formula and joint powers agreement for bikeways on the County Bikeway
System (see attached resolution).
The County Board has also requested that we initiate discussions with cities
concerning the development of standards for maintenance, signage and mapping
of bikeways. At the last meeting with park directors an interest was
expressed in pursuing these topics further.
We would like .to, obtain reactions from the cities on the proposed funding
options and methods to address consistent signage, mapping, and maintenance
standards. We anticipate reviewing the input from cities with the PAC and
Physical Development Board Committee in March.
AM/keg
M -L -PARKS
cc: Dave Robley, Dakota County Transportation Engineer
Barb Schmidt, Parks Assistant Director
AN EQUAL OPPORTUNRY EMPLOYER
1 !0
BOARD OF COUNTY COMMISSIONERS
DAKOTA COUNTY, MINNESOTA
DATE November 7, 1989
RESOLUTION NO. 89-822
Motion by Commissioner_-LoedinR _-SecondedbyCommissioner Cha delaine
WHEREAS, the Planning Advisory Commission has completed a review of the
County Bikeway System Plan; and
WHEREAS, the adopted County Bikeway System Plan specifies 100% County
funding of off-road paths on the County Bikeway System; and
WHEREAS, cities within Dakota County have signed a Joint Powers
Agreement to provide maintenance of off-road bikeways; and
WHEREAS, the County desires to assure the provision of safe bikeways
for County residents.
NOW, THEREFORE, BE IT RESOLVED, That County staff is directed to review
the following funding options with cities concerning a change in the
County funding formula and Joint Powers Agreement for bikeways:
Emphasize paved shoulder construction
- loot or cost share of paved shoulder by the County on the County
Bikeway System
- loot funding of off-road paths by cities
- 100% city maintenance of off-road paths
Cost share off-road oaths on C2gnty Bikewa_v__&ystmm
- 55/45 cost share of off-road paths with cities on the County Bikeway
System
- loot or cost share of paved shoulders by the County on the County
Bikeway System
- 100% city or cost share of maintenance of off-road paths; and
YES NO
Harrb
>Kaher x ujwser
chapd table x cho"dw
s
Twntr 'Verner
State of Minnesota
County of DekoM
t Jots L ieedall. Clerk to the Board of the C=* of DdWU 8babe of 00006 0W & bw* oerdh that I have ooarpartd the
fore;otns am of a rawhrdaz with the original Minuses of the phi of tw sDokd od County coavdwoftm DADU County.
idhanewta, at their "Na" hdd on the 7th - dey of November 1t 89ww on Bh in the County
A&aln ion Dep++_rtent, and ba" found the am to be a trot and aorrsat a"
Witseaa my hand and affieW Peal of Dekata Coaaty thinq-a I,, of r r
Qtfgzd_�_
tr'Jetk b rd
14V
BE IT FURTHER RESOLVED, That County staff undertake discussions with
cities concerning the development of maintenancb standards, signage and
mapping of bikeways.
l�
s
Agenda Information Memo
March 20, 1990 City Council Meeting
There are nineteen (19) items on the agenda referred to as Consent Items requiring one
(1) motion by the City Council. If the City Council wishes to discuss any of the items in
further detail, those items should be removed from the Consent Agenda and placed under
Additional Items unless the discussion required is brief.
PERSONNEL ITEMS
A. PERSONNEL ITEMS:
Item 1. Proposals for Life, Short Term Disability and AD & D Insurance Coverage --As
required by state law, the City recently requested proposals for the group benefit coverage
for City employees which includes life, short term disability and AD & D coverage. The
deadline for proposals was 10:00 a.m., March 16, 1990. Currently, those proposals are
being studied and we are hopeful that a recommendation for approval will be furnished
to the Council with the Additional Information packet on Monday. If that is not possible,
due to the time constraints, that recommendation will be furnished to the Council at the
City Council meeting on March 20, 1990.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve an insurance proposal
for the City's life, short term disability and AD & D group insurance coverage.
Item 2. Undergraduate Intern/Parks and Recreation Department --For the Council's
information, the City will be cooperating with Mankato State University to provide an
undergraduate student internship for Jennifer Peterson, a student majoring in recreation,
parks and leisure services. The internship will last for three months.
No action is required on this item.
SURPLUS PROPERTYISALFJFORD CUSTOM VICTORIA
B. Declare a 1985 Ford Custom Victoria as Surplus Property and Authorize Sale --The
City has a 1985 Ford Crown Victoria which was originally a squad car and more recently
used as a park ranger vehicle. The vehicle has 100,900 miles on it and is no longer cost
effective to maintain. Given the nature of the vehicle, salvage yards were solicited to
make an offer for purchase. Only one (1) bid was received, that being from Suburban
Auto Sales in the amount of $1,016. It is the recommendation of the Finance
Director/City Clerk VanOverbeke that this vehicle be declared surplus property and its
sale to Suburban Auto Sales in the amount of $1,016 be authorized.
/to
Agenda Information Memo
March 20, 1990 City Council Meeting
ACTION TO BE CONSIDERED ON THIS ITEM: To declare the 1985 Ford Crown
Victoria as surplus property and authorize its sale to Suburban Auto Sales in the amount
of $1,016.
SURPLUS PROPERTY/SALErRADAR UNITS
C. Declare Two (2) K-55 Moving Radar Units as Surplus Property and Authorize Sale-
-Chief of Police Geagan has notified City Administrator Hedges that two (2) K-55 Moving
Radar Units which were purchased in 1983 be declared surplus property. He declared
that these units are no longer state of the art. It is probable that the City will receive no
more than $250 each for these units as surplus property.
ACTION TO BE CONSIDERED ON THIS ITEM: To declare two (2) K-55 Moving
Radar Units purchased in 1983 as surplus property and authorize their sale by the Police
Department.
CASH FOR TRASH WINNER
D. Recognize $700 Cash for Trash Winner, Malcolm Heinle --Recycling Coordinator
Hageman has announced that Mr. Malcolm Heinle, a resident of Donald Avenue in the
City of Eagan is the Cash for Trash winner for the week of March 5, 1990. Because there
had been no winners during the previous weeks, Mr. Heinle will be awarded $700 for his
participation in the Eagan recycling program. Unfortunately, Mr. Heinle works during the
evenings and will be unable to attend the prescheduled award presentation during the
meeting of the Eagan City Council on March 20. Mr. Heinle has told Recycling
Coordinator Hageman that he is "glad to participate and will recycle what he can." He
also said he will "encourage his neighbors to do the same." Recycling Coordinator
Hageman will mail Mr. Heinle his award along with a letter thanking him for his
participation during the week of March 19.
ACTION TO BE CONSIDERED ON THIS ITEM: To recognize Mr. Malcolm Heinle as
a $700 Cash for Trash winner.
APPROVE PLANS AND SPECSICONTRACT 90-2
E. Contract 90-2, Approve Plans and Specifications/Authorize Advertisement for Bids,
Park Shelter Buildings - Ohmann, Bridle Ridge, and Northview (Blackhawk Deleted) --
The architectural firm of Schwarz Weber has completed plans for three park shelter
buildings for Bridle Ridge Park, Ohmann Park and Northview Athletic Fields. The
Advisory Parks and Recreation Commission will make a final review of these plans at a
special meeting that is scheduled for Monday, March 19, 1990. Any additional
107
Agenda Information Memo
March 20, 1990 City Council Meeting
information will be forwarded to the Council at the Council meeting on March 20, 1990.
All buildings are using similar designs from previously constructed park shelters.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve plans and specifications
for park shelter buildings at Bridle Ridge Park, Ohmann Park and Northview Athletic
Fields and to authorize advertisement for bids with a bid opening of April 24, 1990.
APPROVE BIDS/PARK VEHICLES/AUTHORIZE BIDS
F. Purchase of Replacement Vehicles for Parks and Recreation Department through
Hennepin County Purchasing/Authorize Advertisement for Bids, Dump Box for 1 -Ton
Chassis --The 1990 approved budget authorized replacement of park units #304 (a 1980
3/4 ton pick-up) and #310 (a 1981 1 -ton truck and box). These vehicles have been bid
through Hennepin County joint purchasing and are available at a cost of $13,911 for the
3/4 ton pick-up and $14,651 for the 1 -ton chassis and cab. The City will need to go out
for its own bids for the box for the latter vehicle.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve the purchase of
replacement vehicles through Hennepin county purchasing for the Parks Department as
listed above and to authorize advertisement of bids for the dump box for the 1 -ton chassis.
EARTH DAY PROCLAMATION
G. Proclamation, Earth Day, April 22, 1990 --The City's Recycling Coordinator and
members of the Parks and Recreation Department have been working closely together
to plan entertaining and educational activities in celebration of Earth Day. This year's
celebration of Earth Day is the 20th anniversary of the first Earth Day. The day itself
is scheduled for Sunday, April 22, with the celebration continuing through the week until
April 29. Events planned include an Earth Day walk, a native prairie walk, the second
annual community clean-up day, a backyard composting demonstration and other activities
in conjunction with recreation programs. Many local and state levels of government will
be participating in the Earth Day activities. It would be appropriate for the City Council
at this time to issue a resolution proclaiming April 22 as Earth Day 1990 in the City of
Eagan. A copy of the proposed proclamation is enclosed on page W for your
information.
ACTION TO BE CONSIDERED ON THIS ITEM: To proclaim April 22, 1990 as Earth
Day 1990 in the City of Eagan.
CITY OF EAGAN
EARTH DAY PROCLAMATION
WHEREAS, almost twenty years ago, more than twenty million Americans
joined together on Earth Day in a demonstration of concern for the environment,
and their collective action resulted in the passage of sweeping new laws to
protect our air, water and land;
WHEREAS, Earth Day 1990 is a local, national and international call
to action for all citizens to join in a global effort to save the planet;
WHEREAS, Earth Day 1990 activities and events will educate all
citizens on the importance of acting in an environmentally sensitive fashion by
recycling, conserving energy and water, using efficient transportation, and
adopting more ecologically sound lifestyles;
WHEREAS, Earth Day 1990 will educate all citizens on the importance
of buying and using those products least harmful to the environment,
NOW, THEREFORE BE IT RESOLVED that the City of Eagan designate and
proclaim April 22, 1990 as Earth Day 1990, and that day shall be set aside for
public activities promoting preservation of the global environment and launching
the "Decade of the Environment."
Motion made by:
Seconded by:
Those in favor:
Those against:
Dated:
CITY OF EAGAN
CITY COUNCIL
By:
Its Mayor
Attest:
Its Clerk
CERTIFICATION
I, E.J. VanOverbeke, Clerk of the City of Eagan, Dakota County,
Minnesota, do hereby certify that the foregoing resolution was duly passed and
adopted by the City Council of the City of Eagan, Dakota County, Minnesota, in
a regular meeting thereof assembled this day of , 1990.
E.J. VanOverbeke, City Clerk
City of Eagan
Iq
Agenda Information Memo
March 20, 1990 City Council Meeting
AWARD SALELT CTOR
H. Receive Bids/Award Sale, Parks Maintenance Tractor --The City Council authorized the
solicitation of a replacement tractor for Parks Maintenance. The bid opening was
scheduled for Thursday, March 15, 1990 at 4:00 p.m., after which time staff will review all
bid proposals to insure compliance with specifications. A recommendation on the
successful bidder will be provided with the Additional Information packet.
ACTION TO BE CONSIDERED ON THIS ITEM: To award the bid for replacement
tractor for Parks Maintenance.
�o
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Agenda Information Memo
March 20, 1990 City Council Meeting
FINAL PLATIDUCKWOOD SQUARE
I. Final Plat, Duckwood Square --All documents relative to the final plat for Duckwood
Square, including the development agreement, have been processed by both the applicant
and the Department of Community Development. Assuming the agreements are properly
signed and all conditions have been met, the final plat will be presented for approval at
the March 20, 1990 City Council meeting. If there are reasons that the final plat should
be removed from the agenda, a recommendation will be made at the time the agenda is
adopted for the meeting.
Enclosed on page J4 is a copy of the final plat as it appears for signature and
recording at Dakota County.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve the final plat for
Duckwood Square.
O�wz
Agenda Information Memo
March 20, 1990 City Council Meeting
FINAL PLATTR.ANK'S NURSERY AND CRAFT'S ADDITION
I Final Plat, Frank's Nursery and Crafts Addition --All documents relative to the final
plat for Frank's Nursery and Crafts Addition, including the development agreement, have
been processed by both the applicant and the Department of Community Development.
Assuming the agreements are properly signed and all conditions have been met, the final
plat will be presented for approval at the March 20, 1990 City Council meeting. If there
are reasons that the final plat should be removed from the agenda, a recommendation will
be made at the time the agenda is adopted for the meeting.
Enclosed on page 4_� is a copy of the final plat as it appears for signature and
recording at Dakota County.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve the final plat for Frank's
Nursery and Crafts Addition.
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Agenda Information Memo
March 20, 1990 City Council Meeting
FINAL PLAT ARK CENTER
K. Final Plat, Park Center --All documents relative to the final plat for Park Center,
including the development agreement, have been processed by both the applicant and the
Department of Community Development. Assuming the agreements are properly signed
and all conditions have been met, the final plat will be presented for approval at the
March 20, 1990 City Council meeting. If there are reasons that the final plat should be
removed from the agenda, a recommendation will be made at the time the agenda is
adopted for the meeting.
Enclosed on page 02 (a is a copy of the final plat as it appears for signature and
recording at Dakota County.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve the final plat for Park
Center.
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Agenda Information Memo
March 20, 1990, City Council Meeting
RECEIVE FINAL ASSMT ROL SCHEDULE PUBLIC HEARING
LPOND AP -50 - TRUNK STORM SEWER)
L. Project 452R, Receive Final Assessment Roll/Schedule Public Hearing (Pond AP -50 -
Trunk Storm Sewer) --Project 452R provided for the trunk storm sewer outlet from Pond
AP -50 located on the north side of Cliff Road across from the Drivers Training Center
within the proposed Park Center development. All work has been completed, all costs
tabulated and the final assessment roll prepared. Therefore, it would be appropriate to
schedule a public hearing to formally present the final assessment information to all
affected property owners.
ACTION TO BE CONSIDERED ON THIS ITEM: To receive the final assessment roll
for Project 452R (Pond AP -50 - Trunk Storm Sewer) and schedule the final assessment
public hearing to be held on May 1, 1990.
RECEIVE FINAL ASSMT ROLLlSCHEDULE PUBLIC HEARING
ALDEN PONDS - STS & UTILITIES
M. Project 542, Receive Final Assessment Roll/Schedule Public Hearing (Alden Ponds -
Streets & Utilities) --This project provided for the installation of streets and utilities to
service the Alden Ponds Addition located on the east side of Coachman Road just south
of Four Oaks Road extended adjacent to the Unisys property. All construction has been
completed, all costs tabulated and the final assessment roll prepared. It would be
appropriate for the City Council to receive this final assessment roll and schedule a public
hearing to formally present and discuss the final costs associated with this public
improvement.
ACTION TO BE CONSIDERED ON THIS ITEM: To receive the final assessment roll
for Project 542 (Alden Ponds - Streets & Utilities) and schedule the final assessment
public hearing to be held on May 1, 1990.
.27
Agenda Information Memo
March 20, 1990, City Council Meeting
RECONSIDER FINAL ASSMT OBJECTIONS/SCHEDULE PUBLIC HEARING
PILOT KNOB RD TRUNK STORM SEWER - MISC OBJECTIONS)
N. Project 473, Reconsider Final Assessment Objections/Schedule Public Hearing (Pilot
Knob Road Trunk Storm Sewer - Miscellaneous Objections) --On September 19, 1988, a
final assessment hearing was held for the benefits received from the installation of trunk
storm sewer facilities associated with the upgrading of Pilot Knob Road and the related
drainage districts. At that public hearing, the following property owners submitted formal
written objections and were subsequently deleted from the Council adopted assessment roll
for that project:
OWNER & PROPERTY
Thomas I Rooney
10-02200-012-86
Anthony Caponi
10-02200-010-80
Anthony Caponi
10-02200-010-84
Mike Kohler
10-02200-016-54
Tom Bergin
10-02200-011-85
Bernard Fritz
10-0220-014-54
SPECIAL ASSMT AMT
$17,160
$16,552
$16,552
$3,300
$3,300
APPRAISED VALUE OF
BENEFITS
$20,000
$20,000
$20,000
$3,300
$3,300
$3,300
Based on the written objections submitted at the final assessment hearing, these parcels
were removed to allow the City to proceed with formal appraisal of the benefits associated
with the improvements. As verified by the above listing, the benefit received from this
improvement has been determined to equal or exceed the amount of the proposed
assessment. Therefore, it would be appropriate to reschedule these parcels for
reconsideration of adopting the final assessment at a formal public hearing.
Agenda Information Memo
March 20, 1990, City Council Meeting
ACTION TO BE CONSIDERED ON THIS ITEM: To reconsider the final assessment for
miscellaneous parcels under Project 473 (Pilot Knob Road Trunk Storm Sewer -
Miscellaneous Objections) and schedule a new final assessment hearing for May 1, 1990.
RECONSIDER FINAL ASSMT/SCHEDULE FINAL ASSMT HEARING
O. Project 494, Reconsider Final Assessment/Schedule Final Assessment Hearing (Wescott
Road Streets & Utilities - Miscellaneous Objections) --On September 19, 1988, the final
assessment hearing was held for the improvements associated with the installation of
streets and utilities for Wescott Road east of Lexington Avenue. At that hearing, two
property owners submitted written objections and were subsequently deleted from the final
adopted assessment roll to allow the City to perform appropriate appraisals to ensure that
the benefit received equalled or exceeded the amount of the assessment. Those two
properties are identified as follows:
OWNER & PROPERTY
Ed Kalal
10-01400-010-82
Robert Mueller
10-01400-020-82
SPECIAL ASSMT AMT
BENEFIT
$28,614.43
$18,379.93
APPRAISED VALUE OF
$39,400
$30,000
Now that the appraisals have been completed and verified that the assessment is
appropriate, it would be in order to reschedule the final assessment hearing for these two
properties to formally adopt their final assessment.
ACTION TO BE CONSIDERED ON THIS ITEM: To reconsider the final assessment roll
for Project 494 (Wescott Road Streets & Utilities - Miscellaneous Objections) and schedule
the final assessment hearing for May 1, 1990, for those affected parcels.
-29
Agenda Information Memo
March 20, 1990, City Council Meeting
RECONSIDER FINAL ASSMT ROLL/SCHEDULE FINAL ASSMT PUBLIC HEARING
(EAGAN HILL FARMS TRUNK UTILITIES - MISC OBJECTIONS)
P. Project 491, Reconsider Final Assessment Roll/Schedule Final Assessment Public
Hearing (Eagan Hill Farms Trunk Utilities - Miscellaneous Objections) --On September
19, 1988, the final assessment hearing was held for the installation of trunk utilities through
the Eagan Hill Farms development (Bridle Ridge Additions). At that meeting, a written
objection was submitted by the following property owner:
OVNNER & PROPERTY
MN7on Hanson
10-02400-010-78
SPECIAL ASSIVTI' AMT
$11,007.17
APPRAISED VALUE OF
BENEFIT
$30,0000
As a result of this written objection, the Council deleted this parcel from the final adopted
assessment roll and continued its consideration to a later date subject to the appropriate
property appraisal being performed. Now that the appraisal has been completed and
more than substantiates the amount of the assessments, it is appropriate for the Council
to reconsider the adoption of this special assessment through a public hearing process.
ACTION TO BE CONSIDERED ON THIS ITEM: To reconsider the final assessment roll
for Project 491 (Eagan Hill Farms Trunk Utilities - Miscellaneous Objections) and
schedule a final assessment public hearing for May 1, 1990.
Agenda Information Memo
March 20, 1990, City Council Meeting
RECONSIDER FINAL ASSMT ROLL/SCHEDULE PUBLIC HEARING
{COUNTRY HOLLOW TRUNK UTILITIES - MISC OBJECTIONS)
Q. Project 505, Reconsider Final Assessment Roll/Schedule Public Hearing (Country
Hollow Trunk Utilities - Miscellaneous Objections) --On September 19, 1988, the final
assessment hearing was held for the installation of trunk utilities to service the Country
Hollow development east of Dodd Road and north of Diffley Road. At that final
assessment hearing, the following property owners submitted written objections:
OWNER & PROPERTY
George Doerfler
10-02400-010-60
James Mayer
10-02400-011-59
Lawrence Oldenburg
10-02400-020-60
SPECIAL ASSMT AMT
$10,006.99
$ 7,132.82
$10,104.87
APPRAISED VALUE OF
BENEFIT
$10,007.00
$ 7,133.00
$10,105.00
As a result of these written objections, the City Council deleted those parcels from the
final adopted assessment roll and continued it for further consideration subject to formal
property appraisals being performed. As verified by the above listing, the benefit
received from this improvement has been determined to equal or exceed the amount of
the proposed assessment. Therefore, it would be appropriate for the Council to reconsider
the adoption of the final assessment for this project as it pertains to those parcels.
ACTION TO BE CONSIDERED ON THIS ITEM: To reconsider the final assessment roll
for Project 505 (Country Hollow Trunk Utilities -Miscellaneous Objections) and schedule
the final assessment public hearing for May 1, 1990.
51
Agenda Information Memo
March 20, 1990, City Council Meeting
FINAL PYMT/ACKNOWLEDGEMENT OF COMPLETION
COACHMAN WATER TREATMENT PLANT - DEHUMIDIFICATION
R. Contract 89-14, Final Payment/Acknowledgement of Completion (Coachman Water
Treatment Plant - Dehumidification) --City staff has received a request for final payment
for the above -referenced contract from the consulting engineering firm along with a
certification of compliance to City approved plans and specifications. All final inspections
have been performed by representatives of the Public Works Department and found to
be in order for favorable Council action.
ACTION TO BE CONSIDERED ON THIS ITEM: To acknowledge completion and
authorize the fourth and final payment for Contract 89-14 (Coachman Water Treatment
Plant - Dehumidification) to Enviro-Con, Inc., in the amount of $3,000 and accept the
project for maintenance subject to appropriate warranty provisions.
APPROVE RESOLUTION RESTRICTING ON -STREET PIING
(RAHN RD - DIFFLEY TO BEAU D'RUE DR)
S. Contract 90-04, Approve Resolution Restricting On -Street Parking (Rahn Road -
Diffley To Beau D'Rue Drive) --As a result of the public hearing authorizing the
reconstruction of Rahn Road, the City Council approved its reduced street width of 36'
which eliminates any potential for on -street parking according to MSAS Standards. In
order for this reduced street width plan to be approved by MSAS and remain eligible for
funding reimbursement, a formal resolution must be passed by the City Council prohibiting
on -street parking. Enclosed on page is the resolution required by State Aid for this
item.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve a resolution restricting
on -street parking for Contract 90-04 (Rahn Road - Diffley To Beau D'Rue Drive) and
authorize the Mayor and City Clerk to execute all related documents.
3L
CITY OF EAGAN
NO PARKING RESOLUTION
RAHN ROAD RECONSTRUCTION
City Proj. 0584, Rahn Road Reconstruction
Municipal State Aid Project (M.S.A.P.) 195-101-05
THIS RESOLUTION, passed the 20th day of March, 1990, by the City of Eagan
in Dakota County, Minnesota, a Municipal corporation provides for certain parking
restrictions on MSAS 101 (Rahn Road) between Diffley Road (CSAH 30) and Beau De
Rue Drive (MSAS 104) in the City of Eagan.
WHEREAS, plans and specifications have been prepared for improvements on
MSAS 101 (Rahn Road) between Diffley Road and Beau De Rue Drive in the City of
Eagan, Dakota County, Minnesota, and
WHEREAS, in accordance with Municipal State Aid Standards the design of
the street does not provide adequate width to allow parking on either side of
Rahn Road between Diffley Road and Beau De Rue Drive, and
WHEREAS, Municipal State Aid Standards require that certain parking
restrictions be placed on MSAS 101 in order to assist in mitigating hazards which
may be caused by the deviation from the width from Municipal State Aid Standards,
and
WHEREAS, the Minnesota Department of Transportation has proposed the
parking restriction on MSAS 101 as a necessary prerequisite to the approval of
the project as a Municipal State Aid Project in the City of Eagan.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Eagan,
Dakota County, Minnesota, approve a restriction which bans parking on both sides
of MSAS 101 (Rahn Road) between Diffley Road and Beau De Rue Drive at all times.
Motion made by: CITY OF EAGAN
Seconded by: CITY COUNCIL
Those in favor:
Those against:
Dated: March 20, 1990 By:
Attest:
3
CERTIFICATION
I, E. J. VanOverbeke, Clerk of the City of Eagan, Dakota County, Minnesota,
do hereby certify that the foregoing resolution as duly passed and adopted by
the City Council of the City of Eagan, Dakota County, Minnesota, in a regular
meeting thereof assembled this 20th day of March, 1990.
E.J. VanOverbeke, City Clerk
J.5
Agenda Information Memo
March 20, 1990 City Council Meeting
�+'�siz�GzrGs
RESOLUTION/DEVELOPMENT PROGRAM/TIF PLAN/DEVELOPMENT AGREEMENT
TRI -LAND PROPERTIES ICE ARENA
A. Resolution/Development Program and Tag Increment Plan for
Development District No. 3, Tri -Land Properties/Ice Arena Project
and Resolution/Development Agreement for Development District No.
3 --
Development Program/Tif Plan
Enclosed on pages through A you will find the revised
tax increment financing application in this matter as presented to
the City on February 6, 1990. To staff's knowledge, the only
material change which has occurred since the submission of the
application is a finding by Dakota County that the ice arena
facility is not eligible for tax exempt status and, as a
consequence, the developer is asking for an addition to the
$1,890,000 amount so that the property taxes on the ice arena would
be rebated to the developer and that the total amount of the tax
increment including the ice arena property taxes would not exceed
$2,250,000.
Enclosed on pages through, you will find the tax
increment financing plan prepared by the firm of Faegre and Benson
reflecting the application and incorporating the above mentioned
revision wespect to �rena property taxes. Also enclosed
on pages through , you will find a resolution which
would approve the new proposal as defined in the tax increment
financing plan and development program for Development District No.
3.
Information pertaining to the policy issues in this regard were
distributed to the Council on February 6. Please refer to those
packet documents for review of those items and the response of the
i consultants and the developer in their regard. If any member of
the City Council has misplaced the February 6 documents, please
feel free to contact the City Administrator's office and a new set
of copies will be provided.
Also enclosed on pages —f t through _ you will find an
updated fact sheet which summarizes the application and the
chronology of its progress since its original receipt on November
9, 1989. In addition to being a brief re -cap for the City Council,
this document will be made available to the public at the meeting
on Tuesday evening.
Also in response to direction by the Council, Parks and Recreation
Director Vraa and Finance Director/City Clerk VanOverbeke
Agenda Information Memo
March 20, 1990 City Council Meeting
coordinated a review of the operating performa. They met with the
ice arena managers from the Cities of Apple Valley, St. Louis Park
and Burnsville and the developer to provide outside analysis of
the Tri -Land arena performa. Information pertaining to this
meeting wa viousl stributed to the Council and is enclosed
on pages � and for your review. At the close of the
meeting, the developer indicated that he would review the performa
for possible changes and resubmit a revised performa for City
consideration. The City has yet to receive the updated performa,
but in a telephone conversation with representatives of the
developer, it was indicated that a revised performa would be made
available to the City Council on Tuesday. It is not anticipated
that staff will have access to this information prior to that time
and, as such, will have difficulty responding to it at the Council
meeting.
The City Council also indicated a desire to receive an analysis of
any pending legislative develop is in resp t to tax increment
financing. Enclosed on pages through you will find
a memorandum from Kristen Karls o Faegre & Benson outlining the
current state of bit, House Senate bills. Finally,
enclosed on pages through you will find copies of
letters received at the City offices pertinent to this matter.
Staff has included all letters received to date as well as a list
of those individuals who have telephoned the City either in favor
of or opposed to the project.
Resolution/Development Agreement
In addition to the February 6, 1990 City Council action setting a
public hearing for the economic development district and TIF
proposal presented by Tri -Land Properties, the City Council also
directed staff, consultants and the developer to negotiate a
development agreement to define responsibilities and protect the
interest of the parties in the event that the proposal is approved.
A draft development agreement was prepared by Steve Rosholt of
Faegre & Benson shortly after the Council action. Upon receipt of
the agreement, Tri -Land requested additional time for their
attorney to review the contract. The first development agreement,
dated February 19, was distributed to the developer and their
consultants for review. The developer asked for time to review and
respond to the initial agreement and a meeting was scheduled for
Thursday, March 1, at which time the City consultants and developer
met for the initial review. A second meeting was scheduled for
Tuesday, March 6, at which time the developer's representatives
identified a number of issues which are outlined in a memorandum
from Kristen Karls of Steve Rosholt's office. This memo Waji
previous rwarded to the Council and is enclosed on pages
through � for your review. The first fourteen points in
Karls memorandum have been responded to by modifications in the
3s
.
Agenda Information Memo
March 20, 1990 City Council Meeting
development agreement. In most cases, the developer's request can
be accommodated with little or no modification. As a result of the
March 6 meeting with the developer and March 8 meeting with the
Finance Committee, several issues were identified by the City's
fiscal consultant, Dave MacGillivray of Springsted, Inc., as being
unagreeable by the developer. On Thursday, March 15, 1990, the
developer and their attorney met with Dave MacGillivray and
Parc
ss was m d toward the resolution of those issues. On pages
(6,
hrough is a copy of the dev to went agreement dated
1990: lso enclosed on pages LA60 through ZalkXvis a
letter from Dave MacGillivray outlining he progress ma a on those
issues that were identified at the March 15 meeting. There was
also an indication made at the March 15 meeting by the developer
that there may be a request presented to the City Council that a
continuance be granted to allow further negotiations on the
development agreement and that that document be presented to the
Council for ratification at a future meeting. The City
Administrator has been in contact with the developer and it is
staff's understanding that the developer desires a continuance of
the development agreement; however, a letter indicating that
request was not rcved in time,Opto go out with the packet.
prepared by Faeg re & Benson.
It is staff's understanding of the Council's direction that it
would be inappropriate to take action to commit to the tax
increment financing proposal without these issues being resolved
and binding on the parties through the development agreement. If
it is the City Council's desire to recognize the request of the
developer to continue the development agreement, it would be
appropriate to proceed with the public hearing allowing for public
testimony, closing the actual public hearing and continuing action
by the City Council on consideration of the resolution for the
development program and tax increment financing plan for
Development District No. 3 and the development agreement for
Development District No. 3 until the April 3 City Council meeting
or some other date agreed to with the developer.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve or deny the tax
increment financing plan and development program for Eagan tax
increment Development District No. 3 with the understanding that
if approval is given to the development agreement between the City
of Eagan and Tri -Land Partnership, it would be adopted according
to the March 6 draft with modifications agreed to by the developer
and Dave MacGillivray.
Alternative Action: To open the public hearing, advise the
audience that the project will be presented, public testimony
heard, a period for discussion and questions by the City Council
304M
Agenda Information Memo
March 20, 1990 City Council Meeting
and unless a motion is presented to defeat the project, the public
hearing will be closed and a continuance will be granted to the
developer to allow additional time to present alternative language
to the development agreement for future consideration by the City
Council. The tax increment financing plan, development program and
development agreement would all be considered at that meeting.
TABLE OF CONTENTS
I. INTRODUCTION..........................................1
II. SUMMARY OF OPTIONS ......................... ..... ...... 2
III. DETAILS OF OPTION NO. 1 ...............................4
- Map of the Tax Increment District.................9
- Tax Increment Projections ........................10
- Ice Arena Operating Pro forma....................13
IV. DETAILS OF OPTION NO. 2 ..............................15
- Map of the Tax Increment District................19
- Tax Increment Projections ........................20
- Ice Arena Operating Pro forma....................23
V. OTHER ENTITIES' SUPPORT OF THE EAGAN ICE ARENA ....... 25
3,1
I. INTRODUCTION
We appreciate your thoughtful consideration of the Eagan
Center project and your support for an ice arena in Eagan.
With the addition of Eagan High School, the increased
popularity of hockey and figure skating clubs, and the
growing need for recreational facilities for Eagan's
citizens; an ice arena is becoming a necessity rather than
simply a convenience.
Tri -Land Partnership of Eagan is prepared to build an ice
arena for the City of Eagan, however, the ice arena will
become a reality only with the assistance of tax increment
financing. We understand that any time the City participates
in a community project, all options must be examined and all
risks evaluated. Tri -Land Partnership of Eagan has listened
to the citizens of Eagan, reviewed the City Council's
gZsesticns about the ice arena project raised at the January
16 meeting, and explored dozens of details for the project
with City staff and consultants during the past six months.
We are presenting two options for the City to consider. Each
option differs according to the ownership and size of the ice
arena. A summary of the options are listed below and details
of the timing, cost, ownership, and operation of the arena
and the associated development have been included in each of
the corresponding appendices attached.
31
II. SUM.#SARY OF OPTIONS
OPTION NO. 1: PRIVATELY OWNED ARENA WITH ONE STANDARD SHEET
OF ICE
The ice arena would be privately owned by a 501 (c)(3) non-
profit organization.
Due to the financial restrictions imposed by the 25 percent
test, one enclosed, standard -sized sheet of ice with seating
for 1,200 people is possible. If additional seating capacity
is desired by the City, portions of the residential
development will need to be included in the tax increment
district.
As planned, however, the multi -family and single family
developments will not be included in the tax increment
district. The amount of commercial development to be included
in the tax increment district would be limited to the retail
r,:ali (excluding the theater), the bank/medical building, and
one outlot. The remaining commercial development will be
outside the tax increment financing district.
The cost of the arena, including hard and soft costs, will be
$1,850,000 plus the cost of the land to be negotiated with
Tri -Land Partnership of Eagan.
We are requesting tax increment in the form of land
accfuisition;write-down. The present value amount of the
request is $1,890,000 over eight years of tax increment.
If fiscal disparities contribution is required from the
district the arena could not be built.
Page 2
OPTION NO. 2: PUBLICLY OWNED ARENA WITH TWO SHEETS OF ICE
The City of Eagan owns the ice arena.
The structure of the arena would include one enclosed sheet
of ice with seating for approximately 2,800 spectators, one
partially open sheet of ice for use during peak months, and
locker rooms in between the two sheets.
The hard and soft costs of the arena will be approximately
$3,200,000 plus the type of payment to be negotiated with
Tri -Land for land valued at approximately $1,288,000.
The request for tax increment is $3,950,000 over eight years
of increment.
The tax increment district would include the adjacent retail
mall development, the movie theaters, the bank/medical
building, various outlots, single-family homes, and a multi-
family development.
If fiscal disparities contribution is required from the
district the arena would be sized down to one sheet of ice.
Page 3
III. OPTION NO. 1: PRIVATELY OWNED ARENA WITH ONE STANDARD
SHEET OF ICE:
A. DESCRIPTION OF THE SIZE, OWNERSHIP, AND MANAGEMENT
OF THE ARENA AND THE ASSOCIATED DEVELOPMENT
Under Option No. 1, Tri -Land Partnership of Eagan is prepared
to build a 33,000 square foot enclosed ice arena. The arena
will include one standard size sheet of ice, operational for
12 months a year, seating for 1,800 spectators, and attached
locker rooms.
5kb 000
The ice arena will be owned and managed by a non-profit board
to include representatives of entities with an interest in
the arena. Non-profit status will exempt the arena from all
state and federal income taxes as well as local property
taxes. Without debt or tax payments, the arena will be able
to operate with a profit. The tax increment requested will
enable Tri -Land to cover the principle and interest payments
on the arena's mortgage while maintaining an acceptable rate
of return on the commercial portion of the development.
Therefcre, the tax increment assistance will catalyze a
cohesive cc^Jercial development and will enable the ice arena
to be free of debt within ten years.
On page 13 is the operating pro forma for the ice arena. The
pro forma assumes that the tax increment will pay for the
hard and soft construction costs plus an agreeable purchase
price for the land currently held by Tri -Land Partnership of
Eagan.
The retail portions of the proposed development will be owned
and operated by a separate general partnership known as the
Lexington Diffley Building Partnership.
DEVELOPMENT WITHIN THE TAX INCREMENT DISTRICT
Ice Arena
Building Size: 33,000 square feet
Area (including parking): 3 acres
Construction Completion: Fall, 1990
Expected Market Value: Exempt
Area A: Use: Retail Mall with Grocery Store
Building Size: 95,000 sq. ft.
Area (including parking): 11.80 acres
Construction Completion: Fall, 1990
Expected Market Value: $7,300,000
Page 4
Area B: Use: Bank/Medical Building
Building Size: 28,000 square feet
Area (including parking): 3.3 acres
Construction Completion: Fall, 1990
Expected Market Value: $2,000,000
Area C: Use: Commercial Outlot
Building Size: 10,000 square feet
Area (including parking): 1 acre
Construction Completion: Fall, 1990
Expected Market Value: $600,000
ASSOCIATED DEVELOPMENT OUTSIDE THE TAX INCREMENT DISTRICT
Area D: Use: Multi -Screen Movie Theater
Building Size: 28,000 square feet
Area (including parking): 6.6 acres
Construction Completion: Fall, 1990
Expected Market Value: $2,800,000
Area E: Use: Convenience Store
Building Size: 10,000 square feet
Area (including parking): 1.5 acres
Construction Completion: Fall, 1990
Expected Market Value: $600,000
Area F: Use: Restaurant
Building Size: 10,000 sq. ft.
Area (including parking): 1 acre
Construction Completion: Fall, 1990
Expected Market Value: $900,000
Area G: Use: Restaurant
Building Size: 10,000 sq. ft.
Area (including parking): 1 acre
Construction Completion: Fall, 1991
Expected Market Value: $600,000
Area H: Use: Retail/Daycare
Building Size: 10,000 sq. ft.
Area (including parking): 1 acre
Construction Completion: Fall, 1991
Expected Market Value: $600,000
Residential
Fourth and Fifth Additions, Lexington Pointe
Number of Lots: 38
Construction Completion: Fall, 1990
Average Square Footage: 1,300 sq. ft.
Average Lot Value: $115,000
Page 5
Residential
Sixth and Seventh Additions, Lexington Pointe
Number of Lots: 73
Construction Completion: Fall, 1991
Average Square Footage: 1,300 sq. ft.
Average Lot Value: $115,000
Residential
Multi -Family Development
Number of Units: 80
Square Footage: 80,000
Estimated Market Value: $5,600,000
B. NATURE OF THE REQUEST FOR TAX INCREMENT
Tri -Land Partnership of Eagan is requesting $1,890,000 of tax
increment assistance present valued at a rate of 12 percent.
The tax increment captured from four parcels of property
which will be identified upon final plat approval of the ice
arena and the commercial development. An outline of the
four parcels plus the parcel for the ice arena are outlined
on the map on page 10.
The tax increment would be in the form of a land write-down
over time using a limited revenue note instead of a general
obligation bond. The land write-down would be designated to
help pay for the property within the tax increment financing
district. The values cf the land are listed below:
USE BLDG & PARKING
AREA
Ice Arena
132,420
sq.
ft.
Retail Mall
514,000
sq.
ft.
(excl. theater)
Bank/Medical
143,750
sq.
ft.
Outlot
43,560
sq.
ft.
TOTAL WITH ARENA LAND COST
TOTAL WITHOUT ARENA LAND COST
TOTAL
COST/SO,.FT. COST
$3.50 $460,000
$3.50 $1,800,000
$3.50 $500,000
$3.50 $150,000
$2,910,000
$2,450,000
Therefce,, at a minimum the value of the land within the
proposed tax increment district is worth approximately
$2,500,000, exceeding the amount requested for tax increment
assistance and eligble as a qualified cost under the tax
increment law.
Page 6
C. COMPLIANCE WITH EAGAN'S TIF POLICY
Tri -Land Partnership of Eagan has reviewed the City of
Eagan's Tax Increment Financing Policy and the questions
raised over the projects compliance with the policy. We
strongly believe that the Eagan Center projects qualifies
under the TIF policy guidelines.
First, Tri -Land Partnership of Eagan is a general
partnership. Any other entity which may have an interest in
either the ice arena or the commercial development will not
be a limited partnership.
Second, the commercial development will bring over 600 new
jobs to the City of Eagan. These jobs are estimated to be
240 full-time equivalent positions. The type of jobs will
range from management of the retail stores within the mall to
skating instructors in the ice arena.
Third, the Eagan TIF Policy indirectly discourages the use of
tax increment for non-industrial/commercial developments.
However, the Eagan policy also requires that the facility
"provide a significant, demonstrable benefit to the City".
The Eagan Center development brings the first ice arena to
the City of Eagan.
D. BUT/FOR TEST
Tri -Land Partnership's interpretation of the "but/for" test,
required by the tax increment law before a municipality
approves a tax increment district, is based upon financial
restrictions. But/for the use of tax increment, ice arena
would not be possible and the size and cohesiveness of the
commercial development would not go forth. We do not purport
that absolutely no development would occur on the 48 acre
parcel during the next eight years. However, we do believe
that tax increment will speed development on a parcel of
property that has been largely undeveloped for a number of
years.
In addition, tax increment assistance will provide the City
of Eagan with a well-planned commercial development and with
safe and efficient access in an area populated by a number of
schools.
Page 7
1
E. FISCAL DISPARITIES
Tri -Land Partnership of Eagan requests that the City of Eagan
elect to make available the total amount of the potential tax
increment generated by this development for debt service on
the limited revenue note. Therefore, we ask that the City
not require a contribution to the fiscal disparities pool for
the life of the tax increment district. If fiscal disparities
was required, the arena and commercial development would not
be possible.
Predicting the impact of non-contributing tax increment
district upon the other properties in a municipality is
difficult. However, Publicorp has estimated that if the
project was to have hypothetically begun receiving tax
increment in 1989 without contributing to the fiscal
disparities pool, the tax rate would have increased by .1
percent. This figure translates into less than $1 annually
for each household and $20 annually for the small business
owner.
Page 8
�4
fk
4
nmroxo wwr
7
PLACE
A w7."1NTS
PROPOSED BONDARIES OF'THE
TAX INCREMENT FINANCING DISTRICT
ELE,mENTAfti R W*H SCHWL
w.J+:F.::1XJ0
1i..14Z LAIC' °A4X
30 -Jan -90 City of Eagan
4
TRI -LAND DEVELOPMENT
Inflation Rate
3.0000%
-ASSUMES ICE
ARENA IS ONE SHEET OF ICE
Present Value Rate
12.00%
-ASSUMES MALL,
BANK/MEDICAL. AND ONE OUTLOT IN DISTRICT
Collection Rate
100.0000%
92
-ASSUMES ICE
ARENA IS
COUNTED WITHIN 25/75 TEST
Fiscal Disparities
0.0000%
>S100,000
0.0495
Pay
Tax Capacity Rate
0.939978 Pay
89
Class Rates
Reinvestment Rate
0.00%
Base Market Value - 5 Yrs
Ago (Pay 85)
350,400
-Estimate
<S68,OOC
Square Ft. Good
Use
Bad Use
Project Market Value -Malt
7,300,OOG Pay
92
95,000
87,000
8,000
Project Market Value -Medical
2,000,000 Pay
92
28,000
28,000
0
Project Market Value -Gas St.
0 Pay
92
0
0
0
Project Market Value -Movie
0 Pay
93
0
0
0
Project Market Value-Outtots
600,000 Pay
92
10,000
10,000
0
Project Market Vaiue-Resid.
0 Pay
92
0
0
0
Project Market Vaiwe-Resid.
0 Pay
93
0
0
0
Project Market Value -Rental
0 Pay
93
0
0
0
Project Market Vaiue-Arena
0 Ray
...........
93
33,000
...............................
0
33,000
Project Tax
9,900,000 Pay
93
166,000
125,000
41,000
Percent of Sq. Ft. as Bad Use: 24.70%
Class Rates -Commercial
Market Vaiue Adjustment Factor.
<S100,000
0.310
Pay
92
..............................---------------------
>S100,000
0.0495
Pay
92
Base Market Value - Current (Pay 90)
499,700
Class Rates
- Homesteads
Base Market Value - 5 Yrs
Ago (Pay 85)
350,400
-Estimate
<S68,OOC
0.0100
--------
568,000 -
S100,000
0.0200
Market Value Increase.
149,300
35100,000
0.0300
Class Rate -
Multi -family
Value Increase Ratio.
42.61%
Total Market Vaiue
O.C360
Value Increase Average.
8.52%
Value Adjustment Factor.
108.52%,
-Estimate
Project Tax
Capacity -Mail
359,782
Pay
92
Estimated Market Value of
Each Parcel When Platted
BASE
Project Tax
Capacity-Medica'L
97,22E
Pay
92
USE
ACRES
S/ACRE
MV
TAX CAP
Project Tax
Capacity -Gas
C
Pay
92
Retail Mall
11.80
10,411
122,850
4,232
Project Tax
Capacity -Movie
0
Pay
93
Bank Medical Bldg
3.30
10,411
34,356
1,065
Project Tax
Capacity-Outiots
27,870
Pay
92
Convenience Store
0.00
0
0
0
Project Tax
Capacity-Resid.
0
Pay
92
OutLot -Good Use
1.00
10,411
10,411
323
Project Tax
Capacity-Resid.
0
Pay
93
Outlot -Parking
3.00
10,411
31,233
1,640
Project Tax
Capacity -Rental
0
Pay
93
Outlot -
0.00
0
0
0
Outlot -
0.00
O
0
0
484,884
Pay
93
Outlot -
4.06
0
0
0
Outtot -
0.00
0
0
0
Residential
0.00
0
0
Multi -family
0.00
0
0
TOTAL
23.16
198,850
BASE TAX CAPACITY 7,259
TL100-02 Prepared by Publicorp Inc.
Page
Page 1
TRII
A
30 -Jan -90 City of Eagan Page 2
rrxwxrrwxrwxwwwrrwwwrwxxrxxrrrxwwwrwww:rwwrrrxrrxrrxxxxxrrrrxwwwwwrwxxrrxr•rrrrxrxrxtxrxxxrrxrrxxrxxxxxxxxxrxrxxxwrrwwrxxr
•
Base
Project
Captured
Gross
Admin
Net
Revenue
PERIOD
'
*PERIOD BEZINNING
Tax
Tax
Tax
Tax
Payment
Tax
Note
ENDING
'
+ Yrs.
x--------------------------------------------------------------------------------------------------------0-5--08---------x
Mth.
Yr.
Capacity
Capacity
Capacity
Increment
0.00%
Increment 12.00%
12.00%
Yrs.
Nth.
Tr.
' 0.0
02-20
1990
7,259
7,259
0
0
0
0
0
0
0.5
08-19
1990
' 0.5
08.20
1990
7,259
7,259
0
0
0
0
0
0
1.0
02.19
1991
' 1.0
02-20
1991
7,878
7,878
0
0
0
0
0
0
1.5
08-19
1991
' 1.5
08.20
1991
7,878
7,878
0
0
0
0
0
0
2.0
02.19
1992
* 2.0
02-20
1992
8,549
484,884
476,335
223,872
7,500
216,372
208,872
0
2.5
08-19
1992 *
' 2.5
08-20
1992
8,549
484,884
476,335
223,872
0
223,872
223,872
0
3.0
02-19
1993 *
' 3.0
02-21
1993
9,278
484,884
475,606
223,530
0
223,530
223,530
0
3.5
08-19
1993 *
* 3.5
08.20
1993
9,278
484,884
475,606
223,530
0
223,530
223,530
0
4.0
02-19
1994 *
+ 4.0
02.20
1994
10,069
499,431
489,362
229,995
0
229,995
229,995
0
4.5
08-19
1994 *
' 4.5
08.20
1994
10,069
499,431
489,362
229,995
0
229,995
229,995
0
5.0
02-19
1995 *
• 5.0
02.20
1995
10,927
514,413
503,487
236,633
0
236,633
236,633
0
5.5
08-19
1995 '
' 5.5
08-20
1995
10,927
514,413
503,487
236,633
0
236,633
236,633
0
6.0
02.19
1996 '
* 6.0
C2.20
1995
11,858
529,346
517,988
243,449
0
243,449
243,449
0
6.5
08.19
1996 *
' 6.5
08-20
1996
11,858
529,846
517,988
243,449
0
243,449
243,449
0
7.0
02.19
1997 '
' 7.0
02-20
1997
12,868
545,741
532,873
250,444
0
250,444
250,444
0
7.5
08-19
1997 *
' 7.5
08.20
1997
12,868
545,7»1
532,873
250,444
0
250,44
250,444
0
8.0
02-19
1998 *
* 8.0
C2-2:
198
13,965
562,113
548,149
257,624
0
257,624
257,624
0
8.5
08-19
1998 *
' 8.5
08-2
1998
13,965
562,113
548,149
257,624
0
257,624
257,624
0
9.0
02-19
1999 *
* 9.0
E2-20
1999
15,155
575,977
563,822
264,990.
0
264,990
264,990
0
9.5
08-19
1999 *
' 9.5
08.2:
1999
15,155
578,977
563,822
264,990
0
264,990
264,990
0
10.0
02-19
2000 *
*
Totals
3,861,073
7,500
3,853,573
3,846,073
0
'
*
Present
Values
1,901,873
5,604
1,896,269
1,890,665
0
rrxrxxwwxrrwwxwwwYwwwwrwrxrwwwwwwxwwwxrlxxxxxrwwxwrxxxxxxxwwrxxxxxrxxrrxxxxwwxrrrrwrwrraxxwxw
TL100-02
Prepared by Publicorp Inc.
Page 1
1+1
TRII
City of Eagan
TL10C-02
Prepared by Publicorp Inc.
Page S*O
Page 3
TRI!
Limited Revenue Note
- To Developer
****#***YYYtY###**##*t#Y#*ttt##sttYtttYYYY###**#f*te###*Y**#**##t******#####****s**#tt******#*f*#**f##*#t*********#tt***Y*
*
FROM:
Beg.
Accrued
Principal
Interest
Total
End
T0:
Payment
•
• Yrs.
Nth.
Yr.
Balance
Interest
Payment
Payment
Payment
Balance
Nth.
Yr.
Yrs.
Date
* 0.0
02.20
1990
1,890,665
113,440
0
0
0
2,004,104
08-19
1990
0.5
* 0.5
08-20
1990
2,004,104
120,246
0
0
0
2,124,351
02-19
1991
1.0
* 1.0
02-20
1991
2,124,351
127,461
0
0
0
2,251,812
08-19
1991
1.5
* 1.5
08-20
1991
2,251,812
135,109
0
0
0
2,386,920
02-19
1992
2.0
* 2.0
02-20
1992
2,386,920
0
65,657
143,215
208,872
2,321,264
02-19
1992
2.5
02-01
1992 *
* 2.5
08-20
1992
2,321,264
C
84,596
139,276
223,872
2,236,668
02-19
1993
3.0
02-01
1993 *
* 3.0
02-20
1993
2,236,668
0
89,330
134,203
223,530
2,147,338
02-19
1993
3.5
02.01
1993 *
* 3.5
08-20
1993
2,147,338
0
94,689
128,840
223,530
2,052,649
02-19
1994
4.0
02-01
1994 *
* 4.0
02-20
1994
2,352;649
0
106,836
123,159
229,995
1,945,813
08-19
1994
4.5
08 -Cl
1994 *
* 4.5
08-20
1994
1,945,813
0
113,246
116,749
229,995
1,832,567
02-19
1995
5.0
02-01
1995 *
* 5.0
02-20
1995
1,832,567
0
126,679
109,954
236,633
1,705,888
08-19
1995
5.5
08-01
1995 *
* 5.5
08-20
1995
1,705,888
C
134,280
102,353
236,633
1,571,608
02-19
1996
6.0
02-01
1996 *
* 6.0
02-20
1996
1,571,608
0
149,152
94,296
243,449
1,422,456
08-19
1996
6.5
08-C1
1996 *
* 6.5
08-20
1996
1,422,456
0
158,101
85,347
243,449
1,264,355
02-19
1997
7.0
02-01
1997
* 7.0
02-20
1997
1,264,355
0
174,583
75,861
250,444
1,089,771
08-19
1997
7.5
08-01
1997
* 7.5
08-2C
1997
1,089,771
0
185,058
65,386
250,444
904,713
02-19
1998
8.0
02-01
1998
* 8.0
02-20
1998
904,713
0
203,341
54,283
257,624
701,372
08-19
1998
8.5
08-01
1998
* 8.5
08-20
1998
701,372
C
215,541
42,082
257,624
485,831
02-19
1999
9.0
02-01
1999
• 9.0
02-20
1999
485,831
0
235,840
29,150
264,990
249,991
08.19
1999
9.5
08-01
1999
' 9.5
08-20
1999
249,991
0
249,991
14,999
264,990
0
02-19
2000
10.0
02-01
2000
*###*s*tttsYYYssrtstteYYYYt#YY#tsttYYYYtt#tttYYYYY#Rts*YsttYYY#i#ttt#R*sst
sttrYt#Y**#**###+*##s'+#s***tA#t##*e#*:s#**tt sfr**
496,256
2,386,920
1,459,152
3,846,073
TL10C-02
Prepared by Publicorp Inc.
Page S*O
Page 3
TRI!
EASAN ICE CENTER
PFIVATECY OWNED
KON-PROFIT STATUS
3.04 ACRES
PROFORMA
JANUARY 29. 1990
PROJECT SIZE ANNUAL COST CONSTRUCTION
NAME SA FT INCOME 59 FT COST
---------------------------- ------------------------------------------------------------------------
Ice Arena (seating 1,200) 3'.,000 340,00r 48.48 1,600.000
------------ ------------
Totals 340,000 1,600,000
CaS71
-----------------------------
(J.J/5fl.) Land 4 •,Y.
Soft Cc:ts 291,000
------------
Total Costs 2,354,418
INCCrCE
---------------- ------------
3 "n e'-
EXPENSES
----------------------------
Estisated 313,400
SOFT COSTS
Architect/Engineer
Legal/Accountino
Surveying
Financing Costs
Title/Record Fees
Miscellaneous
96,00:0 (61 of Bldg Constr Cost)
3c.1000
15,000
80,000
20,000
50,000
Total Soft Costs 291,000
INCV" E ANALYSIS
----------------------------
Tcte': Inc:ae 340,000
Tota: Exoerse: 313,400
------------
N.O.I. 26,600
Page 13
EAGAN ICE ARENA - PRIVATE OWNERSHIP
ESTIMATED REVENUE & EXPENSES
ONE ICE SHEET - SEATING 1200
REVENUE
--------------------
Games
Eagan Hlyh Schccl
St. Thomas A.cadeav
College of St. Thceas
Tournaments
Prime time ice rental
Open Skating
Sumaer Hockey Schools
Fiore Skating
Non -Pride eonths (April -Sept)
Advertising
Concessions/MiE; Silzs
TOTAL REVENUE
EXPENSES
ConcessiUs C .:
Electric i t,,
Gas/Heat
Water
Telephone
Revair/Main. ten -on ce
Grounds/Piowino
Fuei'Oil
Trash
Iaaboni Maintenance
Supplies
Salaries/8ene`;its
Insurance
Accounting/Legal
AdvertisinC
Adalnistrative/MiscEilanEous
TOTAL EXPENSES
3
REPLACEMENT RESERVE
NET INCOME
PRELIMINARY ESTIMATE
JANUARY 29. 1990
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ONE TWO THREE FOUR FIVE SIX SEVEN EIGHT NINE TEN
------------------------------------------------------------------------------------------
10000 10500 11025 11576 12155 12763 13401 14071 14775 15513
10000 10500 11025 11576 12155 12763 13401 14071 14775 15513
12000 12600 13230 13892 14583 15315 16081 16885 17729 18616
20000 21000 22050 23153 24310 25526 26802 28142 29549 31027
153000 160653 168683 177117 185472 195271 205035 215286 226051 237353
4000 4200 4410 4631 4862 5105 5360 5628 5914 6205
10000 10500 11025 11576 12155 12763 13401 14071 14775 15513
11000 1150 12128 12734 13371 14039 14741 15478 16252 1706`..
50000 5250 55125 57831 60775 63814 67005 70355 77.877 77566
15000 15750 165.8 1736418233 19144 20101 21107 22,162 23270
45400 47250 49613 5205: 54698 57433 60.04 63320 664$5 69810
340000 357000 374850 393593 413272 433936 45563; 478414 50:x25 5.2745.
18t 1?=vC' 19645 20837 21?74 2197: 241_2 253=8 265'=4 :79_4
�,,,,,. �-, a-,
... :s 6-.6, 62b5 6? — 7195E 75556 79,.34 83300 874x4 91E39
lCSi` 1=..5 115'6 1215512763 1341.1 14071 14775 15513 1628=
100 1050 1103 1155 1216 1276 1340 1407 1477 155i
3000 3150 330: 347; 3647 3829 4024 422! 443: 465:4
16500 17.35 18l9i 19101 20056 2105? 22112 23217 24376 2557
10'?O0 105%. 110:` !1576 12155 1:'63 13401 14071 14775 155!3
1800 1190 1965 2064 218: ^2297 2412 2533 2656 2792
ipo0.. 1891 19215 2084 219E 2297 2412 2533 1.1659 2792
4000 420? 4414 4631 4862 5105 5360 5628 5910 6205
!30on `�' !`. 1`802 1552 1742! 1 9.
��_: Ss6 < 14;x, 0 49 , s a: ' 1920' 20167
13.'500 144"5 1515=4 1591': 16713: 175489 184263 1934,''6 207.155 21330:
2000021On2205.E 2315: 24310 25526 26802 2814: 29~49 31027
2000, 2104 22•?52315 2431 2553 26K 2814 2955 310-s
6300 6615 6946 7293 7658 8041 8443 8865 930-, 9713
8800 9240 9702 10187 10696 11231 11793 12382 13002 13652
313400 329070 345524 362800 380940 399987 419986 440985 463035 486186
1500v 15000 15000 15000 15000 20000 20000 20000 20000 20000
---------------------------------------------------------------------------------------
11600 12930 14327 15793 17332 13949 15647 114:9 1930: 21265
Page 14
15L
IV. OPTION NO. 2: PUBLIC OWNERSHIP. TWO SHEETS OF ICE
A. DESCRIPTION OF THE SIZE, OWNERSHIP, AND MANAGEMENT OF
THE ARENA AND THE ASSOCIATED DEVELOPMENT
Under Option No. 2, Tri -Land Partnership of Eagan is prepared
to build a 52,000 square foot ice arena. The arena will
include one enclosed, Olympic -sized sheet of ice and one
regular size sheet of ice, partially enclosed, to be used for
ice events seasonally. Locker rooms, located between each
sheet, will be attached to each structure. The enclosed
arena will allow seating for 3,000 spectators.
The ice arena will be managed by a board to include
representatives of entities with an interest in the arena.
Because the City of Eagan will retail title on the arena, the
facility will be exempt from all state and federal income
taxes as well as local property taxes and will enable the
arena to operate without a loss. The tax increment requested
will be used to cover the principle and interest payments on
the arena's mortgage. The tax increment payments will allow
the arena to be debt -free within 10 years. On page 23 is the
operating pro ferna for the ice arena.
The commercial portions of the proposed development will be
owned and operated by a general partnership known as the
Lexington Diffely Building Partnership.
DEVELOPMENT WITHIN THE TAX INCREMENT DISTRICT
Ice Arena
Building Size: 52,000 square feet
Area (including parking): 8.45 acres
Construction Completion: Fall, 1990
Expected Market Value: Exempt
Area A: Use: Retail Mall with Grocery Store
Building Size: 95,000 sq. ft.
Area (including parking): 11.80 acres
Construction Completion: Fall, 1990
Expected Market Value: $7,300,000
Area B: Use: Bank/Medical Building
Building Size: 28,000 square feet
Area (including parking): 3.3 acres
Construction Completion: Fall, 1990
Expected Market Value: $2,000,000
Page 15
5113
Area C: Use: Commercial Outlot
Building Size: 10,000 square feet
Area (including parking): 1 acre
Construction Completion: Fall, 1990
Expected Market Value: $600,000
Area D: Use: Multi -Screen Movie Theater
Building Size: 28,000 square feet
Area (including parking): 6.6 acres
Construction Completion: Fall, 1990
Expected Market Value: $2,800,000
Area E: Use: Convenience Store
Building Size: 10,000 square feet
Area (including parking): 1.5 acres
Construction Completion: Fall, 1990
Expected Market Value: $600,000
Area F: Use: Restaurant
Building Size: 10,000 sq. ft.
Area (including parking): 1 acre
Construction Completion: Fall, 1990
Expected Market Value: $900,000
Area G: Use: Restaurant
Building Size: 10,000 sq. ft.
Area (including parking): 1 acre
Construction Completion: Fall, 1991
Expected Market Value: $600,000
Area H: Use: Retail/Daycare
Building Size: 10,000 sq. ft.
Area (including parking): 1 acre
Construction Completion: Fall, 1991
Expected Market Value: $600,000
Residential
Fourth and Fifth Additions, Lexington Pointe
Number of Lots: 38
Construction Completion: Fall, 1990
Average Square Footage: 1,300 sq. ft.
Average Lot Value: $115,000
Residential
Sixth and Seventh Additions, Lexington Pointe
Number of Lots: 73
Construction Completion: Fall, 1991
Average Square Footage: 1,300 sq. ft.
Average Lot Value: $115,000
Page 16
Residential
Multi -Family Development
Number of Units: 80
Square Footage: 80,000
Estimated Market Value: $5,600,000
B. NATURE OF THE REQUEST FOR TAX INCREMENT
Tri -Land Partnership of Eagan is requesting $3,950,000 of tax
increment assistance present valued at a rate of 12 percent.
This amount would cover all hard and soft construction costs
and approximately 75 percent of the land cost. This request
has increased since the beginning of the application process
with the City as the exact size and nature of the development
has progressed. Tri -Land is planning to develop an quality
ice arena which anticipates any type of structural problem
common with other ice arena's before the Eagan arena is
built.
The remainder of the land value could be negotiated between
the City and Tri -Land Development. The tax increment will be
captured fro:, all of the above mentioned property over a
period of ten years. A map of the proposed tax increment
district is outlined on page 19.
The tax increment district is expected to produce in excess
of $4,200,000 of tax increment. These funds could be used to
cover any unforseen operating losses or the tax increment
could be returned to the school district and the county in
the event they are unused.
C. COMPLIANCE WITH EAGAN'S TIF POLICY
Tri -Land Partnership of Eagan has reviewed the City of
Eagan's Tax Increment Financing Policy and the questions
raised over the projects compliance with the policy. We
strongly believe that the Eagan Center projects qualifies
under the TIF policy guidelines.
First, Tri -Land Partnership of Eagan is a general
partnership. Any other entity which may have an interest in
the commercial development will not be a limited partnership.
Second, the commercial development will bring over 600 new
jobs to the City of Eagan. These jobs are estimated to be
240 full-time equivalent positions. The type of jobs will
range from management of the retail stores within the mall to
skating instructors in the ice arena.
Third, the Eagan TIF Policy indirectly discourages the use of
Page 17
SS
tax increment for non-industrial/commercial developments.
However, the Eagan policy also requires that the facility
"provide a significant, demonstrable benefit to the City".
The Eagan Center development brings the first ice arena to
the City of Eagan.
D. BUT/FOR TEST
Tri -Land Partnership's interpretation of the "but/for" test,
required by the tax increment law before a municipality
approves a tax increment district, is based upon financial
restrictions. But/for the use of tax increment, ice arena
would not be possible and the size, speed, and cohesiveness
of the commercial and residential development would not
proceed.
Concern has been expressed about the inclusion of the
residential portions of the development in the tax increment
district. Tri -Land does not purport that the single-family
homes would not be built without the use of tax increment. We
do state, however, that the proposed development project as a
whole will not proceed. The single-family homes will not
proceed as quickly, the ice arena will not be built, and any
type of commercial development will not be in a safe, timely
and cohesive fashion.
E. FISCAL DISPARITIES
Tri -Land Partnership of Eagan requests that the City of Eagan
elect to make available the total amount of the potential tax
increment generated by this development for debt service on
the limited revenue note. Therefore, we ask that the City
not require a contribution to the fiscal disparities pool for
the life of the tax increscent district. If fiscal disparities
was required, the arena and commercial development would not
be possible.
Predicting the impact of non-contributing tax increment
district upon the other properties in a municipality is
difficult. However, Publicorp has estimated that if the
project was to have hypothetically begun receiving tax
increment in 1989 without contributing to the fiscal
disparities pool, the tax rate would have increased by .1
percent. This figure translates into less than $1 annually
for each household and $20 annually for the small business
owner.
Page 18
PROPOSED BOUNDARIES OF THE
ECONOMIC DEVELOPMENT TIF DISTRICT
ELEMENTARY • W*H SCHOOL
M E NSfMaN
PLACE
Page 19
,�- r?
�N
1!.''1? LAK.' M.1
1
30 -Jan -90 City of Eagan
TRI -LAND DEVELOPMENT
Inflation Rate
3.0000%
Market Value Adjustment Factor.
Present Value Rate
12.00%
0100, Nn.
0.0310
Pay
Coltection Rate
100.0000%
Fiscal Disparities
0.0000%
0.0495
Pay
92
Base Market Value - Current (Pay 90)
Tax Capacity Rate
0.939978 Pay
89
Class Rates
- Homesteads
Reinvestment Rate
0.00%
Base Market Value - 5 Yrs
Ago (Pay 85)
653,544
<S68,000
Square Ft.
Good Use
Baa Use
Project Market Value -Matt
7,300,000 Pay
92
95,000
80,000
15,000
Project Market Vatue-Medicat
2,000,000 Pay
92
28,000
28,000
0
Project Market Vatue-Gas St.
800,000 Pay
92
15,000
0
15,000
Project Market Value -Movie
2,800,000 Pay
93
28,000
0
28,000
Project Market Vatue-Outlots
3,800,000 Pay
93
60,000
10,000
50,000
Project Market Value-Resid.
4,370,00 Pay
92
49,400
49,400
0
Project Market Value-Resid.
8,395,000 Pay
93
94,900
94,900
0
Protect Market Value -Renta:
5,600,000 Pay
93
80,000
80,000
0
35,065,000 Pay
93
450,300
342,300
108,000
Percent of Sq. Ft. as Bad Use: 23.98%
Class Rates -Commercial
Market Value Adjustment Factor.
0100, Nn.
0.0310
Pay
92
..................................................
>S100,"uu^
0.0495
Pay
92
Base Market Value - Current (Pay 90)
928,600
Class Rates
- Homesteads
Base Market Value - 5 Yrs
Ago (Pay 85)
653,544
<S68,000
0.0100
........
$68,000 -
$100,000
0.0200
Market Value Increase.
275,056
>$100,000
0.030C
Class Rate -
Multi -family
Value Increase Ratio.
42.09%
Total Market value
0.0360
value Increase Average.
8.42%
Value Adjustment Factor.
108.42%
Project Tax
Capacity -Mall
359,788
Pay
92
Estimated Market Value of
Each Parcel When Platted
BASE
Project Tax
Capacity -Medical
97,226
Pay
92
USE
ACRES
5/ACRE MV
TAX CAP
Prcject Tax
Capacity -Gas
3 7, 778
Pay
92
Retail Mall >rF Theater &
Grocer 18.30
10,411
190,521
7,564
Project Tax
Capacity -Movie
136,858
Pay
93
Bank Medical Bldg
3.44
10,411
35,814
1,110
Project Tax
Capactty-Outicts
186,398
Pay
93
Convenience Store
1.50
10,411
15,617
484
Project Tax
Capacity-Resid.
50,160
Pay
92
Out lot
1.00
10,411
10,411
323
Project Tax
Capacity-Resid.
96,360
Pay
93
Outlot -
1.00
10,411
10,411
323
Project Tax
Capacity -Rental
201,601;
Pay
93
Outlot -
1.00
10,411
10,411
323
Outtot -
1.00
10,411
10,411
323
1,166,168
Pay
93
Outlot -
4.06
10,411
42,269
1,31C
Outlot -
1.00
10,411
10,411
323
Residential
32.13
187,600
1,876
Mutti-family
38.00
213,400
7,682
TOTAL
102.43
737,275
TLIDO-02
BASE TAX CAPACITY 21,661
Prepared by Publicorp Inc.
Page 20
Page 1
TRIv
30 -Jan -90 City of Eagan Page 2
rrrrrrrrrrrrrrrr:r:rrrrrrrr:rrrrrrr***rrrrerrrrrrrrrrrerrrrrrtrrrrrrrrrrrrrr"rrr•rrrrrrrrrrrrrrrr**•*ersrr*r•r►rrrrrrrrr:rr
•
Base
Project
Captured
Gross
Admin
Net
Revenue
PERIOD
"PERIOD BEGINNING
Tax
Tax
Tax
Tax
Payment
Tax
Note
ENDING
"
* Yrs.
Mth.
Tr.
Capacity
Capacity
Capacity
Increment
0.00%
Increment
12.00%
12.00%
Yrs.
Mth.
Yr.
*------------------------------------------------------------------------------------------------------------------------*
' 0.0
02-20
1990
21,661
21,661
0
0
0
0
0
0
0.5
08-19
1990
' 0.5
08.20
1990
21,661
21,661
0
0
0
0
0
0
1.0
02-19
1991 "
" 1.0
02-20
1991
23,485
23,485
0
0
0
0
0
0
1.5
08-19
1991
• 1.5
08.20
1991
23,485
23,485
0
0
0
0
0
0
2.0
02-19
1992
• 2.0
02.20
1992
25,461
544,952
519,491
244,155
0
244,155
240,000
0
2.5
08-19
1992
' 2.5
08-20
1992
25,461
544,952
519,491
244,155
0
244,155
240,000
0
3.0
02-19
1993
' 3.0
02-20
1993
27,604
1,201,153
1,173,549
551,555
0
551,555
550,000
0
3.5
08-19
1993
' 3.5
08.20
1993
27,604
1,201,153
1,173,549
551,555
0
551,555
550,000
0
4.0
02-19
1994
* 4.0
02.20
1994
29,928
1,237,188
1,207,260
567,399
0
567,399
550,000
0
4.5
08-19
1994 '
' 4.5
08.20
1994
29,928
1,237,188
1,207,260
567,399
0
567,399
550,000
0
5.0
02-19
1995
' 5.0
02.20
1995
32,447
1,274,303
1,241,856
583,659
0
583,659
550,000
0
5.5
08-19
1995
* 5.5
08.2C
1995
32,447
1,274,3C3
1,241,856
583,659
0
583,659
550,000
0
6.0
02-19
1996
• 6.0
02-20
1996
35,178
1,312,532
1,277,354
600,342
0
600,342
550,000
0
6.5
08-19
1996
" 6.5
08-2C
19;6
35,178
1,312,5322
1,277,354
600,342
0
600,342
550,000
0
7.0
02-19
1997
• 7.0
02-20
19;7
38,139
1,351,908
1,313,769
617,457
0
617,457
550,000
0
7.5
08-19
1997
* 7.5
08-20
1997
38,139
1,351,9C8
1,313,769
617,457
0
617,457
550,000
0
8.0
02-19
1998 '
' 8.0
C2-20
1998
41,350
1,392,466
1,351,116
635,010
0
635,010
550,000
0
8.5
08-19
1998
• 8.5
08-20
1998
41,350
1,392,466
1,351,116
635,010
0
635,010
550,000
0
9.0
02-19
1999
* 9.0
02-20
1999
44,830
1,434,240
1,389,409
653,007
0
653,007
550,000
0
9.5
08-19
1999 *
* 9.5
08.20
1999
44,E30
1,434,240
1,389,409
653,007
0
653,007
550,000
0
10.0
02-19
2000 *
*
Totals
8,95,166
0
8,905,166
8,180,000
0
"
------------------------------------------------------
* Present Values 4,243,062 0 4,243,062 3,952,461 0
rrrrrrrrrtrrrrrrrrrrrrrrrrrerrrrrrrrrrrrrrrrrrrrrrrrrrrrr*rrrrrrrrrr:rrrrrrrrrrrrrrrrrerrr*rr
TLIOG-02 Prepared by Publicorp Inc.
Page 21
TRI!
30 -Jan -90 City of Eagan ➢age 3
TLIOO-02
1,159,780 5,112,241 3,190,109 8,180,000
Prepared by Publicorp Inc.
Page 22&0
TRI!
Limited Revenue Mote
- To Developer
rrrrrrrrrrrrrrrrrMerrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
'
FROM:
Beg.
Accrued
Principal
Interest
Total
End
T0:
Payment
• Yrs.
Nth,
Yr.
Balance
Interest
Payment
Payment
Payment
Balance
Nth.
Yr.
Yrs.
Date
•
rrrrrrrrrrrerrerrerrrrreeeerrrrrrrrrrrrerrrrrrrrrrrrrr*rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr
` 0.0
02-20
1990
3,952,461
237,148
0
0
0
4,189,608
08-19
1990
0.5
` 0.5
08.20
1990
4,189,608
251,377
0
0
0
4,440,985
02-19
1991
1.0
' 1.0
02.20
1991
4,440,985
266,459
0
0
0
4,707,444
08-19
1991
1.5
' 1.5
08-20
1991
4,707,444
282,447
0
C
0
4,989,891
02-19
1992
2.0
`
` 2.0
02.20
1992
4,989,891
59,393
0
299,393
240,000
5,049,284
08-19
1992
2.5
08-C1
1992 `
` 2.5
08-23
1992
5,C49,284
62,957
0
302,957
240,000
5,112,241
02-19
1993
3.0
02-01
1993
* 3.0
02.20
1993
5,112.241
0
243,266
306,734
550,000
4,868,976
'08-19
1993
3.5
08.01
1993 '
• 3.5
08-2i
19993
4,868,976
C
257,861
292,139
55C,000
4,611,114
02-19
1994
4.0
02-01
1994 •
* 4.0
02-20
1994
4,611,514
0
273,333
276,667
550,000
4,337,781
08-19
1994
4.5
D8-01
1994
' 4.5
08.20
1994
4,33.7,781
0
289,733
260,267
550,000
4,048,048
02-19
1995
5.0
02-01
1995
* 5.0
02.20
1995
4,0.8,;48
0
307,117
242,883
550,000
3,740,931
08-19
1995
5.5
08-01
1995
* 5.5
08-2C
1995
3,740,931
0
325,544
224,456
550,000
3,415,387
02-19
1996
6.0
02-01
1996 *
• 6.0
02.2:
1996
3,415,387
0
345,077
204,923
550,000
3,070,310
08-19
1996
6.5
08-01
1996 *
• 6.5
08.20
1996
3,070,310
0
365,781
164,219
550,000
2,704,528
02-19
1997
7.0
02-01
1997
` 7.0
C2.20
1997
2,704;525
0
387,728
162,272
550,000
2,316,800
08-19
1997
7.5
08-01
1997
* 7.5
CS -20
1997
2,316,S00
0
4'0,992
139,008
550,000
1,905,808
02-19
1998
8.0
02-01
1998
* 8.0
C2-20
1998
1,905,808
0
435,652
114,348
550,000
1,470,157
08-19
1998
8.5
08-01
1998
* 8.5
CS -2O
1998
1,47:',157
0
461,791
88,209
550,000
1,008,366
02-19
1999
9.0
02.01
1999
' 9.0
C2-20
1999
1,C08,366
0
489,495
60,502
550,000
518,868
08-19
1999
9.5
08-01
1999
' 9.5
08.20
1999
518,868
0
518,868
31,132
550,000
0
02-19
2000
10.0
02-01
2000
rrrrrrrrr►errirerrree*erereere*rrrrrrrrrrrrrrrrrrrrrrrrrrrerrrerrrrrerrrtrrrrrrrrrrrrrrrrrrrrrrrlrrrrrrrrrrrrrrrrrrr*rrrrr
TLIOO-02
1,159,780 5,112,241 3,190,109 8,180,000
Prepared by Publicorp Inc.
Page 22&0
TRI!
EASAN ICE CENTER
PUBLICLY O:NEJ
NON -WIT STATUS
8.45 ACRES
PROFORMA
JANUARY 25, IS30
PRC EC'
SI?E
ANNiAL
COST
CONSTRUCTION
NAME
----------------------------
SO FT
INCOME
SO FT
COST
Ice Arena
------------------------------------------------------------------------
141 SheEts all Ice)
52,000
41i.100
45.00
1,40,000
Parkin Le:
184,447
0.69
145,012
Totais
------------
411.100
------------
2,535,012
SOFT COSTS
COSTS---`---------------------------
-----------------------------
^rcli:te::'Cn- •.Enr
16:,3:;:7z
L
:44 BI�0 Cc'n5tr Cost.
t3. sa .fta :
Lan
I e,281
l,:t :
5,►"+er:rES
15.000
St`t Casts
528,800
F_�ir,c:nc Ce=-ts
250,00
------------
Fees
2r.00:
Total Cost:
4,352,104
!f:S:Ella^ecus
5,(, 00C
------------
Total Soft rests
52@,300
INCL"C
----------------------------
Est mated
41!.100
INCOH. ANALYSIS
EX=c!t5._
----------------------------
----------------------------
Tctal I c m
41: '00
t-st:gatEi
Total Ez,er5e5
316.40'
-----------
N.C.l,
94,20"
Page 23
(.R/
11
EAGAN ICE ARENA - PUBLIC OWNERSHIP
19000
19950
2094E
21995
PRELIMINARY
ESTIMATE
25462
26735
28072
ESTIMATED REVENUE 6 EXPENSES
Electric: - .
59200
62160
65268
JANUARY 25.
1990
75556
79334
83300
81465
TWO ICE SHEETS
Ga= -'seat
0000
13650
1433:
15049
15802
16592
17421
18292
1920'
REVENUE
YEAR
YEAR
YEAR
YEAR
YEAR
YEAR
YEAR
YEAR
YEAR
YEAR
----------- --------
ONE
TWO
THREE
FOUR
FIVE
Sa
SEVEN
EIGHT
NINE
TEN
Gaaes
------------------------------------------------------------------------------------------
16506
17325
18191
19101
20056
21059
22112
23^217
24378
Ea an High Schcsl
10000
10500
11025
11576
12155
12763
13401
14071
14775
!`513
St. Thclas Acalesy
10000
10500
11025
11576
12155
12763
13401
14071
14775
15513
Colle a Di St. Tholas
12000
12600
13230
13892
14586
15315
16081
16885
17729
IS616
Tournaments
20000
21000
22050
23153
24310
25526
26802
28142
29549
7:027
Pri3e the ice rental
201600
211680
222264
233377
245046
257298
270163
283671
297855
.12748
Open Skiting
4000
4200
4410
4631
4862
5105
5360
5628
5910
6205
Sutler Hccket° Sc%c_Is
10000
10500
11025
11576
12155
12763
13401
14071
14775
12513
Figure Skating
11000
11550
12128
12734
13371
14039
14741
15478
16252
:'065
Nor. -prime lc^t`:s (kril-Sept;
70000
73500
77175
81034
85085
89340
93807
98497
103422
1111:593
AdvE,tisinc
15000
15750
16538
17364
18233
19144
20101
21107
22162
23210
'Eales
47500
49875
52369
54987
57737
60623
63655
66937
10179
73698
TOTAL REV -"!',t
------------------------------------------------------------------------------------------
411100
431655
453238
475900
499695
524679
550913
578459
601382
637751
EXPENSES
Cc-nce. --- I: -,s Cc;`.
19000
19950
2094E
21995
23095
24249
25462
26735
28072
29475
Electric: - .
59200
62160
65268
68531
71958
75556
79334
83300
81465
91839
Ga= -'seat
0000
13650
1433:
15049
15802
16592
17421
18292
1920'
20167
Mate-
1000
1050
1103
1158
1216
1276
1340
1407
1477
1551
Tele_�:nz
3000
3150
3308
3473
3647
3824
4020
4221
443_
4654
Repa:.r,'"a- :er.a-ca
16506
17325
18191
19101
20056
21059
22112
23^217
24378
25537
10000
10500
11025
11576
12155
12763
13401
14071
14775
15513
Fuel!2:I
1800
1890
1985
2084
2198
2297
2412
2533
2659
2792
Trw,
1800
1890
1985
2084
2188
2297
2412
2533
2659
2792
IaltC NElnt'-: Z-r,,e
4000
4200
4410
4631
4862
5105
5360
5628
5910
6205
Surpiies
13000
13650
14333
15049
15802
16592
17421
18292
19207
20167
Salaries 5e,�e4i'.€
137500
144375
151594
159173
167132
175489
184263
193476
203150
213308
1nsura^-e
20000
21000
22050
23153
24310
25526
26802
28142
29549
31027
Accoe^ti^ :eczl
2000
2100
2205
2315
2431
2553
2680
2814
2955
3103
Ad+eats:'.c
6300
6615
6946
7293
7658
8041
8443
8865
9308
9773
Ada:risLr:::re:"tisce iare:Ls
8800
92411
9702
10187
10696
11231
11793
12382
13001
13652
TOTAL EXPENSES
316900
332745
349382
366851
385194
404454
424676
445910
468206
491616
REPLACEMENT RESERVE
20000
------- ---------------------------------------------------------------------------
20000
20000
20000
20000
30000
30000
30000
30000
30000
NET INCOME
74200
78910
83856
89048
94501
90226
96237
102549
109176
116135
Page 24 ,
3729f
Distribution Draft
CITY OF EAGAN, MINNESOTA
EAGAN
DEVELOPMENT DISTRICT NO. 3
TAX INCREMENT FINANCING PLAN
AND
DEVELOPMENT PROGRAM
March 20, 1990
TAX INCREMENT FINANCING PLAN
EAGAN DEVELOPMENT
DISTRICT NO. 3
CITY OF EAGAN, MINNESOTA
INTRODUCTION
This Tax Increment Financing Plan has been prepared by
the City of Eagan, Minnesota (the "City") under the
requirements of the Minnesota Tax Increment Financing Act (the
"Act"), Minnesota Statutes, Sections 469.174 to 469.179. The
City herein proposes and describes the establishment of a Tax
Increment Financing District within the City's Development
District No. 3 to provide financing for land acquisition which
is necessary to induce a private -sector development consisting
of approximately 166,000 gross square feet of recreational,
retail, commercial and office facilities by Tri -Land
Partnership of Eagan ("Tri -Land").
BACKGROUND
The City Council has called for a public hearing on
the formation of both Development District No. 3 and the Tax
Increment Financing District. On March 20, 1990, subject to
public input, the Council will consider both the Development
Program and the Tax Increment Financing Plan. Development
District No. 3 is being established pursuant to Minnesota
Statutes, Sections 469.124 to 469.134.
A copy of the proposed Development Program for
Development District No. 3 and certain other items are attached
hereto and incorporated herein by reference.
DEVELOPMENT PROGRAM
Objectives
The objectives sought to be accomplished by the City
in establishing Development District No. 3 are as follows:
s 1. To promote and secure development and expansion
M of new business.
2. To provide employment opportunities through the
creation of new jobs.
3. To expand the tax base of the City.
4. To improve recreational opportunities in the City.
Development Program
The Development Program for Development District No. 3
is attached hereto as Exhibit A and incorporated by reference
herein.
As part of the Development Program, the City expects
to acquire the property described in Exhibit B hereto (which is
the same area as the Development District and the Tax Increment
Financing District) and re -sell it to Tri -Land for a nominal
amount subject to a requirement that Tri -Land construct a 1,200
person -capacity ice arena (the "Ice Arena"). The City believes
this will induce substantial anticipated private developments
(the "Private Developments") within Development District No. 3,
including the construction of a retail mall (including a
grocery store), medical office facilities, a bank and related
commercial and retail development. It is estimated that these
improvements will be completed in the years and have
approximate square footage and expected market values as
follows:
Table 1: Eagan Development District: Anticipated
Tri -Land Development
Building Expected
Completion Square Market
T1a+-c TTec Fa=t V;41 lip
Ice Arena
Fall, 1990
Recreation
33,000
$1,800,000
Area A
Fall, 1990
Retail Mall
95,000
7,300,000
with Grocery
Store
Area B
Fall, 1990
Bank/Medical
28,000
2,000,000
Building
Area C
Fall, 1990
Commercial
10,000
600,000
Outlot
The location of the site of the Private Developments and the
locations of all the proposed buildings and uses for the
Tri -Land site are shown on Exhibit D attached hereto. The
location of the Development District are shown on Exhibit B
attached hereto.
The location of the Private Developments, the
boundaries of Development District No. 3 and the boundaries of
the Tax Increment Financing District are the same.
No contracts have been entered into by the City for
the construction of any of the private improvements. However,
prior to the issuance of any bonds or the expenditure of tax
increments derived from the Tax Increment Financing District
for the improvements contemplated by the Development Program,
the City expects to enter into a development agreement with
Tri -Land under which Tri -Land will agree, subject to the terms
of the agreement, to construct the Ice Arena and at least a
portion of the remaining Private Developments identified in
Table 1 within the time schedule identified above, or other
private improvements within the Tax Increment Financing
District that justify and support the expenditure of tax
increment revenues.
TAX INCREMENT FINANCING
Description of Property in Tax Increment Financing District
The Tax Increment Financing District consists of the
property described in Exhibit B. Because the property to be
included in the Tax Increment Financing District involves a
split of an existing tax parcel, it is anticipated that Dakota
County will defer identification of the parcels to be included
within the Tax Increment Financing District until the filing of
the revised plat for this site. The City may prepare an
addendum to this Plan to effect proper identification of the
parcel described in Exhibit B.
Basis for Findings
The City has established the following facts as the
basis for the findings required to be made pursuant to the Act
and the estimates and projections set forth herein:
1. The Tax Increment Financing District is an
"economic development district" within the meaning of the Act
in that it consists of a project under the Act which (a) will
result in substantial increased employment in the City,
estimated at approximately 240 new full-time equivalent
employees by 1992, and (b) will enhance the tax base of the
City by providing an estimated additional 166,000 square feet
of development by 1992 which the City expects will have a
market value of $11,700,000 and a tax capacity of $572,202.
2. The proposed private developments expected to be
constructed by Tri -Land would not reasonably be expected to
occur solely through private investment within the reasonably
foreseeable future and therefore the use of tax increment
financing is deemed necessary. The property in the Development
District has not been developed as expected due in part to
limited attractions in the area. The construction of the Ice
Arena is necessary to aid in generating a customer base
sufficient to support the additional proposed Private
Developments in the Development District. As a result of the
subsidy contemplated by this Plan, the Development District
will be developed to a higher density than would otherwise be
expected. Tri -Land could not, in the absence of a land
write-down subsidy to all of the property in the Development
District finance the costs of construction of the Ice Arena in
addition to the other Private Developments in an economically
viable manner.
3. This Tax Increment Financing Plan conforms to the
general plan for the development or redevelopment of the City
as a whole. The City's August, 1988, Comprehensive Plan
identifies as goals the development of commercial and
industrial complexes and the provision of services needed to
support commercial and industrial development. The Development
Program and this Plan have been reviewed by the Planning
Commission of the City and found to be in conformance with the
Comprehensive Plan of the City. Development District No. 3 is
zoned for the uses contemplated by the private development
contemplated by the Development Program.
4. The opportunity and feasibility for development
of Development District No. 3 by private parties is maximized
through the use of tax increment financing. Given the
unavailability of funding from other governmental sources and
the necessity of the contemplated land write-down as an
inducement to the Private Developments, the use of tax
increment financing will maximize the development opportunities
within Development District No. 3.
5. The City will not make an election pursuant to
Minnesota Statutes, Section 469.177, Subd. 3, clause (b).
Accordingly, the original tax capacity and current tax capacity
will be determined before the application of the fiscal
disparities provisions of Chapter 473F, Minnesota Statutes.
District Certification and Dur n of Tax Ingrement Financing
District
The City expects to request a certification of this
Tax Increment Financing District prior to April 1, 1990, after
the filing of revised plats. Accordingly, original tax
capacity is expected to be $7,259 based on its value as of
January 2, 1989, which is estimated to be $499,700.
As an economic development district, the maximum life
of the Tax Increment Financing District is the lesser of (a) 10
years from the anticipated March 20, 1990, approval by the City
Council or (b) 8 years from the date of receipt of the first
increment, which is expected in February, 1992.
Prior Planned Improvements
No building permits have been issued by the City for
any properties in the Tax increment Financing District in the
eighteen month time period preceding the expected March 20,
1990 approval of this Tax Increment Financing Plan.
-4-
61
Original Tax Capacity
According to preliminary information received from the
office of the County Assessor and certain assumptions by the
City staff, the most recent tax capacity of the taxable real
property within Tax Increment Financing District is expected to
be approximately $7,259, based on certain assumptions relating
to the calculation of the tax capacity of the particular
parcels. On this basis the City estimates that the Original
Tax Capacity of the Tax Increment Financing District will be
$7,259, although it is possible that the County Auditor may at
the time of certification of the District arrive at a different
determination of Original Tax Capacity. The County Auditor
will add to the Original Tax Capacity in each year an amount
equal to the Original Tax Capacity for the preceding year
multiplied by the average percentage increase in the tax
capacity of all property included in the District during the
five years prior to certification. This increase is estimated
to be 8.52%, based on an estimated January 2, 1984 market
valuation. of $350,400. The increase of market valuation from
an estimated $350,400 in 1984 to an estimated $499,700 in 1989
is 42.61% or 8.52% per year.
Original Tax Capacity Rate
The Original Tax Capacity Rate applicable to the Tax
Increment Financing District is expected to be approximately
94%.
Estimated Captured Net Tax Capacity and Tax Increment
Current financial projections for the Tax Increment
Financing District, based on assumptions that include
completion of the Private Developments in accordance with the
schedule set forth in Table 1 above, an Original Tax Capacity
Rate of 93.9978% and estimated Original Tax Capacities and
Current Tax Capacities as set forth in Exhibit C attached
hereto, which assume an annual 3.00% increase in market values
of the improvements and an annual increase in the Original Tax
Capacity of 8.52%, suggest that the total tax increment to be
generated by the District will be $4,572,949, assuming
termination of the District after 1999. These tax increments
are expected to be received in the years and amounts as set
forth in Exhibit C.
Bonded Indebtednes-a
It is presently anticipated that the net land
write-down cost for the real property to be acquired by
City in connection with the Development Program will be
$1,890,000 and $2,250,000. To evidence its repayment
obligation, the City may issue a tax -increment revenue
the
between
note
(the "Note") pursuant to the Act, payable solely from tax
increment revenues, to Tri -Land in an aggregate principal
amount of up to $2,250,000.
Estimated Sources and Uses of Funds
The proceeds of the Note of up to $2,250,000 will be
used to pay the costs of land acquisition and permissable
administrative expenses. The costs of the project, including
administrative expenses, are estimated to be $2,250,000.
All of the tax increment received from the Tax
Increment Financing District (presently estimated to be
$4,572,949) will be used to pay the principal of and interest
on the Note and any administrative expenses permitted by the
Act.
Uses Qf Tgx jI1zremQntB
As permitted by the Act, the City will use the tax
increments generated from the Captured Tax Capacity of the
District primarily to pay the principal and interest on the
Note or to reimburse Tri -Land for costs paid or incurred under
the Program. A portion of the tax increment may also be used
to pay administrative expenses incurred by the City, subject to
the limitations imposed by the Act. Pursuant to the Act, the
City elects to retain 100% of all increments collected.
However, the City retains the option, at any time during the
life of the District, to retain some portion less than 100% of
the annual tax increment, and pass on the remaining portion to
other taxing jurisdictions in accordance with the Act.
The City also retains the option to modify this Plan
in accordance with the Act to include further expenditures of
tax increments for additional public purposes.
Additional.Financings
The City presently anticipates no other additional
public financing for the District, except as described above.
Eliaible Uses
The City has analyzed the proposed Tri -Land
development for the purpose of determining compliance with
Minnesota Statutes, Section 469.176, Subd. 4c. The development
by Tri -Land and any other private parties in the District does
not consist of buildings and facilities which will be used more
than 25% (measured by square footage) for the purposes listed
in section 144(a)(8) of the Internal Revenue Code of 1986.
Impact on Other Taxing Jurisdigtions
Except the consequences of the method chosen by the
City with respect to the fiscal disparities contribution
required by Chapter 473F, Minnesota Statutes, the creation of
Tax Increment Financing District will have no impact on other
taxing jurisdictions, including Dakota County, ISD No. 196 and
SISD No.'917, if it is assumed as contemplated by this Plan
that development of that parcel would not occur in the absence
of tax increment financing.
After termination of the District, all taxing
jurisdictions will have the benefit of the increase in tax
capacity from the private developments, subject, as in the case
of other commercial -industrial property, to the fiscal
disparities contribution.
If it is assumed that all of the private developments
in the Tax Increment Financing District would occur without the
tax increment assistance contemplated by the Plan, the City and
other taxing jurisdictions would be adversely affected to the
extent that the Captured Value is retained by the City for the
estimated duration of the District.
Set forth in Exhibit D is a statement of the estimated
annual fiscal and economic impact of the Tax Increment
Financing District on each taxing jurisdiction.
The fiscal disparities contribution from other
property in the City outside the Tax Increment Financing
District will have a negative impact on tax rates in the City
whether or not the development would have occurred without tax
increment financing. However, that impact will be negligible.
3724f
I "
(0�
EXHIBIT A
DEVELOPMENT PROGRAM
EAGAN DEVELOPMENT
DISTRICT NO. 3
A. STATEMENT OF INTENT
It is the intent of the City of Eagan to organize a
development district and undertake a development program within
the meaning of Minnesota Statutes, Sections 469.124 to 469.134
(the "Development District Act"), and to designate the project
area as Development District No. 3 (the "Development District")
for purposes of carrying out the land acquisition hereinafter
described and establish a portion of the project area as a tax
increment financing district pursuant to Minnesota Statutes,
Sections 469.174 to 469.179 (the "Tax Increment Act"), in the
financing of such land acquisition. The boundaries of
Development District No. 3 are as set forth in Exhibit B to the
Tax Increment Financing Plan.
In particular, there has been presented to the City a
plan for a land write-down equal to the costs of constructing
the Ice Arena described in the Tax Increment Financing Plan in
order to induce and permit the construction of the Ice Arena, a
retail mall and related retail, commercial, office and
residential development, all for the purposes of providing
impetus for commercial development, providing employment
opportunities, and enhancing the tax base of the City.
B. STATEMENT OF NEED
There is a need for new development in the City to
provide employment opportunities, to increase the tax base and
to improve the general economy of the state and the City. This
need can be accomplished through the attraction of commercial
development. In the case of the District, significant
development can be attracted by the Program described herein.
The action herein proposed to be taken by the City is found to
have a public purpose in accordance with the Development
District Act and is necessary to meet those needs.
The primary commercial development which the City
believes will be attracted as a result of the creation of the
Development District and implementation of the Program is the
construction of a major private -sector development (the
"Private Developments") consisting of approximately 166,000
square feet, consisting of the Ice Arena, a retail mall
(including a grocery store), medical office facilities, a bank
and related commercial and retail development.
10
C. AUTHORITY TO ESTABLISH A TAX INCRE14ENT DISTRICT AND TO
IMPLEMENT A_DEVELOPMENT PROGRAM
The City has power to establish a tax increment
financing district under the Tax Increment Act and to undertake
development programs as defined in the Development District
Act. The City has authority under the Development District Act
to acquire, construct, reconstruct, improve, alter, extend,
operate, maintain or promote developments aimed at improving
the physical facilities, quality of life and quality of
transportation.
D. DEVELOPMENT PROGRAM OBJECTIVES
The objectives sought to be accomplished by the City
in establishing its Development District No. 3 and in carrying
out the Development Program for the Development District are as
follows:
1. To promote and secure development and expansion
of new business.
2. To provide employment opportunities through the
creation of new jobs.
3. To expand the tax base of the City.
4. To improve recreational opportunities and quality
of life within the City.
E. DEVELOPMENT DISTRICT ACTIVITIES
The objectives of this Development District will be
accomplished through the acquisition of the property described
in Exhibit B to the Tax Increment Financing Plan. The property
will be re -sold to Tri -Land for a nominal amount subject to a
requirement to Tri -Land construct an ice arena with one
standard size sheet of ice with seating for 1,200 spectators.
This action is expected to induce construction of the other
Private Developments.
F. LAND USE
All development on lands in Development District No. 3
will be for the uses described above and for uses permitted by
law. The Development Program does not involve any restrictions
on the use of private property.
G. LAND ACQUISITIQN
In connection with the Development Program, the City
expects to acquire the property described in Exhibit B to the
Tax Increment Financing Plan.
�i
H. ADMINISTRATION
The City Administrator shall be responsible for the
administration of Development District No. 3 on behalf of the
City of Eagan.
I. ENVIRONMENTAL CONTROLS
Construction of the Private Developments will be
subject to all environmental permits and controls required by
law. No additional environmental controls are contemplated as
part of the Development Program.
J. MAINTENANCE AND OPERATION.
It is expected that the Ice Arena will be owned and
managed by the developer or a nonprofit corporation with a
board consisting of representatives of entities with an
interest in the Ice Arena. It is expected that the remainder
of the Private Developments will be owned and operated by a
general partnership known as the Lexington Diffley Building
Partnership.
K. COORDINATION WITH OTHER GOVERNMENTAL UNITS
Construction and operation of the Private Developments
will require coordination with other affected governmental
units, including ISD 196 and SISD 917.
3725f
?i
r.
EXHIBIT B
The property included in Development District No. 3
and the Tax Increment Financing District and the land to be
acquired by City in conneciton with land write-down, is that
portion of a parcel having PID No. 10-450-070-040-00 which is
described on the map on the following page.
3726f
'73
PROPCSED BOUNDARIES OF THE
ECONOMIC DEVELOPMENT TIF DISTRICT
AND DEVELOPMENT DISTRICT NO. 3
11
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Extract of Minutes of Meeting of the
City Council of the City of Eagan
Dakota County, Minnesota
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Eagan, Minnesota,
was duly held at the City Hall in said City on Tuesday, the
20th day of March, 1990, at o'clock, P.M.
The following Councilmembers were present:
and the following were absent:
Councilmember
introduced the
following written resolution and moved its adoption:
RESOLUTION APPROVING DEVELOPMENT PROGRAM AND TAX
INCREMENT FINANCING PLAN FOR DEVELOPMENT DISTRICT NO. 3
WHEREAS, there has been presented to the City Council
a Development Program and a Tax Increment Financing Plan for
Development District No. 3 of the City of Eagan;
WHEREAS, the City has completed the necessary proce-
dural steps for the creation of a development district and tax
increment financing district, including a public hearing held
thereon after at least 10 days published notice in a newspaper
of general circulation in the City, review by the Planning
Commission and notification of affected taxing jurisdictions.
WHEREAS, the Tax Increment Financing Plan and the
Development Program will further the objectives described
therein;
WHEREAS, the project contemplated by the Development
Program is a "development program," within the meaning of
Minnesota Statutes, Section 469.125, Subdivision 3, and the tax
W7 I
6-
a
increment financing district to be created under the tax
increment financing plan is to be an "economic development
district," within the meaning of Minnesota Statutes, Section
469.174, Subdivision 12;
WHEREAS, the City is authorized to create a tax
increment financing district pursuant to Minnesota Statutes,
Sections"469.174 to 469.179, as amended, and a development
district pursuant to Minnesota Statutes, Sections 469.124 tc
469.134, for the purpose of financing and constructing the
project described in the Development Program.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF EAGAN, MINNESOTA, AS FOLLOWS:
1. It is hereby found, determined and declared that:
(a) the proposed tax increment financing district is
an economic development district;
(b) the proposed development or redevelopment would
not reasonably be expected to occur solely through private
investment within the reasonably foreseeable future and
therefore the use of tax increment financing is deemed
necessary;
(c) the Tax Increment Financing Plan conforms to the
general plan for the development or redevelopment of the
municipality as a whole; and
(d) the Tax Increment Financing Plan will afford
maximum opportunity, consistent with the sound needs of the
municipality as a whole, for the development or
redevelopment of the project by private enterprise.
The reasons and supporting facts for each of the above
determinations are as set forth in the Development Program and
the Tax Increment Financing Plan.
2. The Development Program and the Tax Increment
s Financing Plan are hereby approved and there shall be created a
development district and a tax increment financing district as
provided therein and the City shall undertake the project
described in the Development Program through the use of tax
increment financing.
3. The City shall request certification of the
original assessed valuation of the tax increment district as
described in the tax increment financing plan by the Dakota
County Auditor.
4. If appropriate, the City shall undertake any
public improvements described in the Development Program
atutes, Sections 469.124 to 469.134.
the adoption of the foregoing
nded by Councilmember
n thereon the following voted in favor
against the same:
,n was declared duly passed and adopted.
'79
STATE OF MINNESOTA }
COUNTY OF DAKOTA } SS.
CITY OF EAGAN )
I, the undersigned, being the duly qualified and
acting City Clerk of the City of Eagan, Minnesota, hereby
certify that I have carefully compared the attached and
foregoing extract of minutes of a regular meeting of the City
Council of said City held March 20, 1990 with the original
thereof on file and of record in my office, and the same is a
full, true and complete transcript therefrom.
Witness My hand officially and the seal of the City
this day of
3544e
11 1990.
City Clerk
City of Eagan, Minnesota
FACT SHEET
TRI -LAND PARTNERSHIP OF EAGAN
APPLICATION FOR TAX INCREMENT ASSISTANCE
Background
Tri -Land Partnership of Eagan is requesting tax increment financing
assistance for a development project located at the intersection
of Lexington Avenue and Diffley Road that would include:
* Retail Shopping Center
* Medical Office Building
* Commercial Outlot for Free -Standing Businesses
Certain specific uses such as a gas station and movie theater are
proposed for the project but are not eligible for tax increment
financing. Also proposed to be included, and a major reason that
tax increment financing assistance is being requested, is a 1200
seat ice arena.
Ouestion Before the Council
The issue before the City Council is not whether an ice arena
should or should not be constructed but whether tax increment
financing assistance should be used as a financial tool for this
project. In previous meetings the Council has expressed support
for the concept of private development of an ice arena but the
complexity of tax increment financing and its potential application
to this project require careful consideration by the Council.
TIF (Definition)
Tax increment financing (TIF) is a process by which new tax
revenues generated by a new development pay for certain development
costs. The difference between the taxes before development and the
increased taxes after development is referred to as the "tax
increment." A "pay as you go" plan or a sale of bonds may be used
to finance the project. In this case, the pay as you go system
would be used with a financial institution providing the funding
for the project.
Tax increment financing has a number of restrictions and
regulations as to its use defined by the legislature. Specifically,
the TIF statute requires that the City make a finding that the
development would not occur "but for" the use of tax increment
financing. The term "development" means the private development
and the commercial area, not just the ice arena.
Chronology
The recent chronology for considering the TIF application began
when the application was filed with the City on November 9, 1989.
3
The City Council directed the application to be reviewed by its
Economic Development Commission and the Finance Committee of the
City Council. The Economic Development Commission (EDC) was asked
to make findings and report to the City Council as to whether TIF
should be further considered as a financial tool for the project.
The project was originally proposed as private, however, due to the
scope and structure of the application, modifications were made by
the applicant to that of public ownership.
The EDC met on November 28 and again on December 19 to complete
their findings and a recommendation was then presented to the City
Council at the January 4, 1990 regular meeting. The EDC was split
on its recommendation since three members recommended that tax
increment financing be further considered if public policy issues
were adequately addressed and the other three members recommended
that TIF not be considered for this type of project due to its
retail nature.
The City Council at the January 4 meeting recommended that the
City's consultants draft a tax increment financing plan, economic
development district plan and address any and all public policy
questions for review and consideration at the January 16 meeting.
At the January 16 meeting of the City Council the TIF plan,
economic development district plan and public policy questions were
presented and addressed by the City Council. There was also a
direction given to the applicant to remove the housing from the TIF
and restructure the project to a private ownership by reducing the
project costs.
On February 6, the City Council reviewed the public policy issues
and received extensive testimony regarding the TIF application.
At that time, the Council determined that there was sufficient
reason to consider the TIF application to schedule a public hearing
on the matter on March 20. In the interim, the developer and the
City staff were directed to negotiate a development agreement for
the project. A development agreement is a standard document which
identifies each party's responsibilities and limits liabilities
and exposure of the parties in the event of any failure to perform.
Such development agreements are in place for the City's other tax
increment districts for improvements around Northwest Airlines and
Unisys.
The developer and representatives of the City have met several
times since the February 6 Council action to negotiate the
development agreement. That agreement and issues relating to it
will also be considered by the City Council on March 20.
Public Policy Issues
The public policy questions that were raised at the January 16
meeting concerned a variety of issues including ownership of the
ice arena and future risk to the City's general fund if operations
or debt payments are not properly secured. Questions were also
raised in light of the vote by residents to not use public funds
to construct a community center that included an ice arena in the
referendum that did not pass in February of 1989. The Council also
asked whether the school district would obligate itself in some
type of joint venture regarding future financial risk.
Summary or Council action
At the February 20 City Council meeting a determination will be
made to approve or deny the use of tax increment financing to
support this project. In making this decision, the Council will
be considering both the policy issues as to the appropriateness of
tax increment for the project proposed, whether or not the project
would occur "but for" tax increment and the practical issues as to
whether the City's exposure to risk is adequately addressed in the
proposal and the development agreement.
MEMO TO: CITY ADMINISTRATOR HEDGES
FROM: FINANCE DIRECTOR/CITY CLSRE VANOVERBEKE
DATE: MARCH 9, 1990
SUBJECT: ICE ARENA PROFORMA - TRI -LAND
Please find attached a copy of the Tri -Land ice arena proforma
dated February 6, 1990, which was delivered to the City on February
27, 1990, along with supporting documentation. On Tuesday, March
6, Ken Vraa and I along with Gary Petig, Manager of Apple Valley
Ice Arena; Craig Panning, St. Louis Park Recreation Center; and Tom
Seesz, Burnsville Ice Arena Manager met with Brad Swenson and Janet
Abele of Tri -Land to review this material. It was felt that with
40-45 years of ice arena management experience among them these
three gentlemen would be well qualified to assist the City in
providing a fair and objective review.
All revenue and expense projections were reviewed on a line item
by line item basis and general consensus was reached that some
revisions would be necessary. For example Tri -Land has more hours
rented at $85 per hour than are available, consequently, they will
be changing the hourly rate from $85 to $100 to maintain the same
total. Other revenues and expenses will be adjusted as a result
of the discussion. A revised proforma has been requested but not
yet received.
I think it is fair to say that a difference of opinion still
remains as to whether or not the proforma can be met especially in
a first year or start-up situation. Tri -Land generally feels that
revenue estimates are conservative and expenditure estimates may
be too high. The three independent reviewers feel that the
opposite is probably the case with revenues being very aggressive
and expenditures being too conservative. Again, the concern on the
revenue side is exacerbated by a start-up situation. It appears
that the reviewers would feel more comfortable with a pro -forma
that was closer to the actuals of Richfield and New Hope which are
noted on the third attached page. The replacement reserve was
reviewed positively and appears to be adequate while the facility
is new. Concern was expressed about how important it is to
properly maintain a facility of this nature. While the
miscellaneous/contingency account appears to be quite large, that
was favorably reviewed and is expected to be necessary.
It should be noted that tax payments are not included on this
proforma and will impact the bottom line depending on how and when
they are paid. Also, while it was not the charge of this review
there seemed to be concern that the type of facility being
discussed could not be built with construction costs of $1,600,000
and soft costs of $341,000 for a total cost of $1,941,000. It was
also noted that required equipment is not included in these
numbers.
0
TOM
MARC.. - ,
PAGE TWO
I believe this provides the preliminary review of projected
operating results as requested. We will -review the revised
proforma and provide whatever additional information you would
like.
�nd
Fin V
a Director/City Clerk
cc: Ken Vraa
au rr� rr, ■ •, T inn nu r T
Ey6A4 -„_ A�fN, - Pn1YnTE :�'fE�S^tr
PRELIMINARY,
,.i!ATE
EE':M-'En REVEliE 6 EXPENSES
FEBRUARY 6.
1990
C -SE :CE SHEET - SES':vS 1206
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41 each
year
►D rE{:E:t '!moria. 1'�:Er. rotES.
m
1
EARN I.E 'ITER
PRIrATE:9 OWNED
C -q
A
PROFORMA
JANUARY 29, 1.990
'F.ECT SIZE ANNAL COST CONSTRUCTION
JANE SG FT INC?ME SG FT CrS?
--------------------------- ----------------------------------------- -------------------------------
;�e A�E�a (Seating 1,200) 31,0@0 440,000 ; 19.48 11,600,000
------------ ------------
[mals 340,000 1,609,000
7 f
. ,. 467,373
------------
---------------- ------------
Est aat?d 34r,009
:Y FEN E5
---------------- ------------
,..
SOFT COSTS
------------------------------
"n�:.:te:t "61 :1 ?Idg
SO,CO
b
Title/F-r.cr' Fees Zt�,G00
ris.ellaneous 51C10��
Total Soft Costs 341,000
INCOME ANALV'SIS
------------
----------------
Total Incase
340,000
Total Expenses
3131400
N.M.
------------
26,600
L-VARAT YE -Tr:-_!SENT rF r -EVEN IES ANr EXPENSES
ICE A=;E';nS N ';E TWIN CITIES rlREA
P.-
Iiw
^crn ES--
-----------------------
-+..-
-------------------------
..E:. a.'.r
iE35'-E3:
'tach
Co.t of ...:ds SoIJ
. Ether Ex e -see
TOTAL EXFENK3
XCH EF. ;E iE"F''rrTAT:MN
nere.i3ti�n
Carta: :>u,t1ar
jr:NET AXrwl."E
K4ENA. M:'h :VE S .:? 3F I:E
------------------------------------------------------
1938 A l,u�a
L=3& n-��` 1?3Arr AL ir88 Ar n i
. "T ,;,„Ul
--------------------------------------------
AFPLE ',ALLEY I3.YN PARK'=IChF;ELD NEW tCPE
:,CIO SZA1S 1,00 SE4TE 1,;':t SEATS 1,500 SEATS
;FEN 6 403 PEN :2 MIS. CP: -N 11 116S. t7FEN ii .40S.
138,:.9
6,:81
1o,`,J4
97,647
620
1)9,;?45
:25,843
25,984
209,558
1,237
45.136
31,x97
9,:68
1'3,807
9,6.4
47B,i`.4
.
ea, ROA
iv
:8').805
203 5?3
.,
23,•58
416,446
31,708
125,974
1E3,249
7,565
15,918
14.922
5,n
� 'Cy
6,50
14
51,4.3 i
17,'64
tg�:-5
149,:'6
26,440
1,272
1,256
6,237
9,916
262,839
114,965)
9,819
;24,8441
149.'.6?
Ml +^�
'...4•-
37,704
11,146
16,735
1,:3b
E�4
..;9,:161
71,155 }
7
f
}
12,49_
1,769
15,197
120, 0+77
12, 5.•58
00
11,364
7,330
251,843
71,4:4
194,216)
ICE "CNAS WITH 'W! cw:;-S CF :CE
----------------------------------------
1'99 BL"EET 1'39 BJ:HT JA4-,-9 .9S8
PL 7-NSVILLE SPAEMER C071ASE e:.IV£
900 SEATS 1,000 SEATS 1.11P SEATS
3PEN 11.5 "C5.3FEN :2 M3^-. CFEN 10.5 "ES.
1:5,x0'
J
32,.4;i
2,347
34,443
5,358
1,1'30
7,715
745 X78
J,.
r
6,969
7,115
497,639
26,189
376,"00
:9,'700
-0,000
:7,40')
17,3':0
5,Oti0
1'e rl
n
4 A A 0
,
1,500
17 „0
^5 ^.50
4..n
0
9,0':0
2,200
414,960
79,8'.:1
14,31):
4,310
1,`61
:3."5:
520
1130,361
56,014
1.270
MAR t s Asa
J
MEMORANDUM
To: Tom Hedges Date: March 15, 1990
From: Kristin Karls cc: Dave MacGillivray
Gene VanOverbeke
Re: Pending Legislative Developments/Tax Increment
Financing
As you requested, here is a summary of certain
provisions contained in pending tax increment finance
legislation which may be particularly relevant to the City
Council in connection with its upcoming discussion regarding
the Tri -Land project.
A. Ho -use Bill.
The House Property Tax Division has adopted a tax
increment financing bill, H.F. 2209, which has been referred to
the full Tax Committee. Thus, if these provisions are adopted
at all, their ultimate formulation will be largely determined
in conference committee sessions. The most material provision
of the House Bill, with respect to the Tri -Land project, is
Section 16, which would limit the use of economic development
districts for which the request for certification is filed
after May 1, 1990 to manufacturing and warehousing projects and
to tourism projects outside of the metropolitan area. Thus, if
the request for certification of the development district
proposed by Tri -Land is not filed prior to such date, the
proposed legislation would prevent the use of such district for
the commercial purposes which are currently being proposed.
In addition, Section 11 of the House Bill provides
that the creation of new TIF districts (other than housing
districts) is subject to a reverse referendum upon petition (to
be filed within 60 days of the municipality's approval of the
TIF plan) of the greater of (1) 5% of the voters who voted in
the last general election or (2) the lesser of (A) 200 voters
or (B) 50% of the registered voters in the municipality. If
the voters reject the TIF district, the city may not include
the area in another TIF district for a two year period after
the vote. The proposed legislation includes an exception from
this requirement with respect to cities which have a citizen
review board with approval authority.
Additional provisions of the House Bill which may be
of interest to the Council are set forth below. Except as
noted otherwise, the provisions are effective for districts for
which certification is requested after May 1, 1990.
Section 1. This provision provides for a reduction in
local government aid ("LGA") and homestead and agricultural
credit aid ("HACA") payments to cities to offset a portion of
the increased school aid payments resulting from TIF. The
amount of these aid reductions are computed as follows:
(1) Qualifying captured tax capacity is computed for each
school district. This amount is the sum of the
captured tax capacity for economic development and
soils condition districts for which certification is
requested after April 30, 1990.
(2) The commissioner of education will compute the
hypothetical amount of school aids that would be paid
to each school district if the qualifying TIF captured
value were in the school's tax base under the
formula. The difference between this amount and the
actual aid paid will then be allocated to the cities
that authorized the TIF districts. (The actual school
aid paid to the school districts does not change.)
(3) The resulting amounts will be deducted from the
cities' LGA and HACA payments.
Section 15. This section provides, among other
things, that for economic development districts for which
certification was requested after April 30, 1990, the total
amount of revenue derived from tax increments that may be
expended for administrative expenses is limited to 10% of the
increments collected in the three years following the date the
first increment was received.
Section 18. This section imposes volume limitations
on the use of tax increment financing by cities. If the total
amount of captured tax capacity in the city exceeds its limit,
new districts or amendments to TIF plans are not permitted
unless they are also approved by the school district and
county. The initial limit for a city is 10 percent of the
average per capita tax capacity for all cities multiplied by
the city's population. The initial limit is increased to a
maximum of 15 percent of the state average per capita tax
capacity if the city has below average tax base and is
decreased to a minimum of 5 percent of the state average per
capita tax capacity if the city has above average tax base.
Section 19. In addition to the imposition of certain
restrictions on pooling arrangements, this section limits the
expenditure of tax increments to activities for which binding
legal commitments have been made within five years after
approval of the district. In order to qualify, increments can
be used to pay either bonds issued within the five year period
or to pay binding contracts with a third party (i.e., not an
Ro
entity under the municipality's control) entered into during
the five year period. Any additional increment revenues must
be used to pay off these obligations and to de-certify the
district.
Section 23. This section charges the county auditor
and the commissioner of revenue with enforcing the TIF law and
also authorizes taxpayer suits, in connection with which costs
and attorney fees will be awarded to the prevailing party. If
a municipality is found to be in violation of the law by either
illegally collecting or spending increments, the municipality
must repay 110 percent of the amount illegally collected or
expended. These provisions would apply to all TIF districts
regardless of when certified.
B. Senate Bill.
It appears likely that there will be no action on tax
increment financing in the Senate this year, while a Bill
designated as S.F. No. 1760 has been introduced by Senator
Reichgott, it has not been addressed at any hearings and does
not appear to have sufficient supporting votes to succeed. Key
provisions of this legislation which would affect the proposed
Tri-Land project include Section 5, which provides that a city
development district may use tax increment financing only for
the types of projects that may be undertaken by a housing and
development authority. This provision, which would apply to
TIF districts for which certification is requested after
April 30, 1990, would obviously preclude the development
project being proposed by Tri-Land.
In addition, Section 2 of the Senate Bill, which would
also apply to TIF districts for which certification is
requested after April 30, 1990, provides that a joint review
board consisting of various representatives of local government
and the public shall review a tax increment financing plan if
(i) the governing body of the municipality, county or school
district within which the TIF district is proposed to be
located requests creation of such board no later than 30 days
after presentation of information to the county board and
school board as required by the statute, (ii) a petition is
signed by at least 50 eligible voters in the city no later than
14 days after the public hearing, or (iii) the total captured
tax capacity in the municipality exceeds 10 percent of the
total capacity of the municipality. For a TIF plan to succeed,
it would have to be approved by an affirmative vote of at least
one-half of the members of the review board, based on criteria
which include whether the development in the TIF district would
occur without the use of tax increment financing, whether the
economic benefits of the TIF district are sufficient to
compensate for the costs of the improvements, and whether the
benefits of the proposal outweigh the anticipated loss in tax
revenue of the overlying taxing districts.
3884f
i
February 28, 1990
The enclosed articles explain our stand on the ice arena/retail
center question caning before the council on March 20. We are
not in favor of aL= tax money going for this project, either
directly or indirectly (through TIF) .
We will be watching your vote closely on this important matter.
I ---A f A4
'fir. & Mrs. David F. Evans
1595 Blac''ma7v, r=ills Road
Eagan 55122
VAO
CITIZENS AND BUSINESS OWNERS
IN THE CITY OF EAGAN
DOES THE CITY OF EAGAN
NEED MORE RETAIL CENTERS?
Q
DO YOU WANT THE CITY OF EAGAN'S COUNCIL TO APPROVE
THE GIVING OF UP TO $1.890.000.00 TAX DOLLARS TO A
DEVELOPER TO SUBSIDIZE A RETAIL COMMUNITY SHOPPING
CENTER?
DO YOU WANT THE CITY OF EAGAN"S COUNCIL TO APPROVE
THE GIVING TO THE SAME DEVELOPER UP TO $360.000.00 TAX
DOLLARS FOR SO-CALLED "PERMISSIBLE ADMINISTRATIVE
EXPENSES"?
NO
DO YOU AS A TAXPAYER IN EAGAN WANT ANY PORTION OF
YOUR TAX DOLLARS TO INDIRECTLY SUBSIDIZE THIS
DEVELOPMENT LOCATED SOUTH OF DIFFLEY AND EAST OF
LEXINGTON (NEAR TH.= EAGAN HIGH SCHOOL)?
NO
DO YOU KNOW THAT THE PROPOSED COMMUNITY SHOPPING
CENTER WILL BE LARGER IN SIZE THAN THE TOWN CENTRE
SHOPPING CENTER AND THAT INCREASED TRAFFIC TO/FROM
THE PROPOSED CENTER WILL BE ON THE SAME ROADS NEAR
YOUR HOMES. THINK ABOUT YOUR YOUNG CHILDREN CROSS-
ING A BUSY STREET TO GET TO SCHOOL OR THE PARK. WHAT
DO YOU THINK HAPPENS TO THE VALUE OF HOMES THAT ARE
LOCATED NEAR A DEVELOPMENT LIKE THIS?
CONTACT YOUR CITY OF EAGAN COUNCIL MEMBERS AND TELL
THEM
Qrs]
COUNCIL MEMBERS
PAM MCCREA
DAVID GUSTAFSON
T ii i PAWLEN T r'
TED WACHTER
MAYOR
TOM EGAN
PAJD ADVERTMEMENT Pn Yk Prtl b w ..yva % Sy 0a Iw. P.O S. 21411. Eqs.. w 55121
8A FEBRUARY 25.1900 THL5WE.EK
���ant�e� �C�at�st
d
nes9 use of tax
increman".1 fi nein
By James Walsh
Staff `'Writer
dcvciopmcn t ccals ar.
snstclt; g: a growing amount of po-
tci2:;a; revenue from COu12t': catTcrs,
say couttty o;lic;ais it the metro area.
Tic: hope the Legislature will gyve
CnE ^tle� niore �^Qwcr tv hmn suc".
The dcvelopni ni st:aiegy Anowl; as
tax here :2cnt `irancing is a tool cit-
ics LSC' ',0 c .cucragc prn-ate dcvelo;.-
Mc;.! :. ' spur cc,anomic grca Th„
se nee of the devcl-
ppe cost. the;,, use tale lS:�eJ tcncr-
at�. b� the new dcvelopn ret :o re-
pay the costs they, incurred in helping
Ilio project get off the ground or as
inducements for new projects.
Withou: tax increment financing,
city of cw;s say, many projects
wouldn% be built and local econo-
mics would stagnate. County offi-
cials, however, contend many of the
same protects would be built without
the financial incentives of;cred by tax
increment districts.
For the period it takes the cit-,• to
recoup its investment, no other tax-
ing distr;ct, including the count} and
,I,c school districts, can collect taxes
on the rcw, devc1opme2tts,
Cities may establish many different
types of districts, depending on the
lupe of development. Taxes from rc-
development projects arc reserved
Duals continued on page 9B
4
DealsContinuvil from page 1B
for the city for eight years, but other
taxing districts may have to wait as
lung as 25 years to collect taxa from
a new dcyclopmcni. In Hennepin
County. Minneapolis is considering
extending that period.
Such deals increase taxes for other
county propcnv owners. Jacqueline
Byrd. Ramsey County policy analysis
-director, told the board last week.
"The county must provide services
to these areas without the benefit ON
tax base increase." she said. Those
added costs, therefore, arc spread
among existing taxpayers.
Scott County officials say that per-
ecntagc is even higher.
Hennepin County is next at 7.2 per-
ccnt. Anoka, Dakota and Washing-
ton counties are at 5.4 percent, 3
percent and 2.1 percent.
Any new development that comes to
Carver County is built in a tax incrc-
mcni district, County Auditor JoAnn
Hccklin said. There are 23 tax incre-
ment districts in Carver County. in-
cluding nearly all ufdowntown Chas-
ka.
In Ramsey County, about 6.1 percent
of the total tax base lies within tax
i districts. That compares
percent in 1980. Much of
,n St. Paul — about 20
ocks — lies within a tax
t district.
If the number of increment districts
continues to grow as it has. Byrd
said. more than 10 percent of Ram-
sey County's tax base could be cap-
tured by tax increment districts by
1995.
Jerry !iceman. finance and personnel
director for the Fridley School Dis-
trict, said 8 percent of the district's
tax base of more than S14 million, is
captured by tax increment districts.
And many school districts could be
hit even harder, he said.
"When we passed a special refcrcn-
dum, the TIFs used to get that mon-
ey, too," he said. In recent years,
those districts have returned those
additional revenues to the school sys-
tem, Seeman said.
He said that arrangement means
about 5100,000 a year for the
schools, but the TIN aren't required
to send that money back to the
schools.
Hennepin County would collect an-
other S25 million a year in taxes if
the tax increment districts did not
exist, said Jerry Paul, a manager in
the county's Tax and Public Records
Department. In all, Hennepin's tax
increment districts collect S98 mil-
lion a year that otherwise would go io
the county government. school dis-
tricts and other agencies.
Dakota Count; Adminivrator Lyle
Wray saikt a.s county .s losing S1.5
to $2. ntii .on a year ;n .ax
revenues.
Those cSil-nmas assume ,:hitt dcvc
opmcn: woulu have taken p!ace wit! -,-
out t c dcvcicpmca: tool.
Tort Cam;nbel: chailcngcs that as-
sumpaor.. The &hercvicw Ccrvmjni-
iy Devcicpmcm director sax: Dc4.x.
Corp would nave moved clscw tcre
had .t not been Tor the city's crca:.cn
of a tax increment Cnancing district
LO help with a muitimdhon sonar
expansion of its chccK-printing plant.
and he said lnc doubts the 1,500 jobs
Deluxe plans w, add tr, Yrc -,cx,. i5
years wot,id have conic front some-
where
omawhere cls-.
Bvr4 said one ixay io restric; tax ions
is to limit tits amount of tax base that
can be captured. Wi=ns.n sets the
Sim.t at 5 percent.
Staic Sen. Ember Rcichtott, DFL.
!yew hope. who chairs the straw
Tax Committee's Economic Devet-
opmeni Subcommitlec, said she will
propose a bill in the next session of
the Legislature to curb the rapid in-
crease in tax increment districts. Too
4S
many cities are abusing the tool, she
said, by extending the file of the tax '
increment financing district to pay
for uther projects.
That practice is not only costly to
other property taxpayers, she said.
but the state ends up giving more aid
to counties and school districts to
make up for the lost tax base.
"It is costing the state money, no
matter how you look at it."
Reichgott said her bill, which is now
being written, would give the coun- I
tics and school districts sonic say in 1
where tax increment districts can be
established and what kind of projects
can be built.
Both the Metropolitan Inter County
Association and Association of Min-
nesota Counties support the idea of
increased county participation in tax
increment decisions.
Ramscy. County commissioners said
they hope to meet will) city officials
in February to talk about develop- t
ment issues. And Byrd said she docs
not want this to turn into a battle
between cities and counties.
But Campbell said Shoreview, and
other cities, would oppose limits on
their use of the financing. '
"Tax .ncrc:-tc.: tinancsrg :z tt,. cnly
4001 M'e h;,Nc�Sxaap-
mcnt." h. sal , "To pct furthcr
shackles on „• too., r.'S::.Cti aur
ab;ii:y to
i
wF
G�L;ll
q (i
Lid-�.� �. i7� . �� �1� /"�'"�- /►!'� Q/
(%=•�/�.�i .L�+�.,,�'(�,.�,t� 1{� �+(//h,4R1/.lA/.7iRJ�{� .IT.�i►�i✓ �1.
Ar�#f al C Aj
oj-jt4 14DIt11A� 4�q.
e G 0 . r *fs
i
nutc� �cva� .
..c. �. /mac. �,;�. . "v; c'' ld ,�•c I�.,� ' o
eved a•�..
iiAN f c
S."A N
TRI -LAND PARTNERSHIP ICE ARENA PROJECT
TAX INCREMENT FINANCING ASSISTANCE
Opposed
Raymond & Rose Buntjer
1073 Beatrice Street
Marie Bydalek
860 Rogers Court
Bill & Elaine Olive
4033 Northview Terrace
In Favor
Carol Hoagland
1253 Spruce Point
Don & Cindy Slusarski
2035 Opal Place
Cindy Roe
882 Lakewood Hills
Kathy Bailey
1655 Mallard Drive
Diana McDonough
900 Park Knoll Dr
Linda Palmer
2065 Emerald Lane
MAR 07 190 16:14 FAEGRE & BENSON MPLS 612 3363844
TO: Tom Hedges DATE: March 7, 1990
Gene VanOverbeke
Dave MacGillivray
FROM: Kristin Karls
RE: City of Eagan/Tri-Land Partnership
Development Agreement Meeting
F. 2/E
Here is a rough summary of revisions proposed by
Tri -Land at our meeting on Tuesday. Items 1 through 14 are
revisions with which we feel comfortable, subject to approval
by the City. Following this list is a discussion of some of
the major issues which remain unresolved.
1, Section 1,.04. Tri -Land has proposed that the
maximum amount of the Tax Increment Note be raised from
$1,890,000 to $2,250,000 (in order to take into account
estimated property taxes on the Ice Arena), such figure to be
reduced by the amount by which actual construction costs of the
Arena are less than $1,890,000.
2. gection 1.06. Tri -Land has requested that the
City agree in this section that it will not reduce the size of
the TIF District, change its fiscal disparities election, or
take similar actions which would have the effect of reducing
the tag increment to be received by Tri -Land.
3. Sgntion 3.D2. Instead of the trading of
quitclaim deeds as currently provided, Tri -Land has proposed
that a per -acre price be determined with a series of land
take -downs to occur as the financing falls into place.
4.section 4.01. (a) Tri -Land has requested the
freedom to convey the Note without the written consent of the
City. We are comfortable with this change provided that a form
of investment letter, to be signed by any purchaser of the
Note, be attached as an exhibit to the Agreement.
(b) With respect to the interest rate payable on the
Note, Tri -Land has requested that the alternate interest rate
be the rate payable on the permanent financing obtained with
respect to the Ice Arena. [Note that Dave M. is further
analyzing the appropriateness of the 12 percent cap and that
the possibility was also raised that an absolute interest rate
on the Note be designated as opposed to the alternate rates
currently provided for.)
MAR 07 '90 16:15 FAEGRE & BENSON MPLS 612 3363844
P. 3/6
5. fiction 4.02. Tri -Land has requested that this
section be revised to provide that Tri -Land will deposit a
specified amount of cash with the City which will be drawn upon
for initial administrative expenses (any unused amount of such
deposit to be returned to Tri -Land), which draws will be
subsequently reimbursed out of tax increment. The maximum
amount of such initial expenses is still to be determined.
Tri -Land has also proposed that once these initial
administrative expenses of the City have been paid, any further
administrative costs be absorbed by the City and not subject to
reimbursement from tax increment.
6. Sectina 5.01. We have agreed to delete this
provision (requiring Tri -Land's deposit of $1,890,000 into an
escrow account), and to provide elsewhere in the Agreement that
Tri -Land will be reimbursed only for the actual costs of
constructing the Ice Arena, up to the maximum amount of the
Note.
7. Se ___tions 5.03 through 5.06. It was proposed that
these sections, generally dealing with plans and
specifications, construction contracts, construction progress
reports, and completion certificates, be limited to the Ice
Arena only, with the only requirements pertaining to the
additional Facilities being compliance with normal City zoning
requirements and eligibility under the 75/25% test. It was
also proposed that a sentence be added to Section 5.03
permitting Tri -Land to revise the plans and specifications for
the Ice Arena, in its discretion if the dollar amount of the
change order is less than a permitted amount (to be
determined), and requiring the consent of the City after
submission of the proposed change order if the dollar amount is
over such permitted amount. Dave M. is to check with the City
regarding what the appropriate amount would be, and Kris Chale
is to confirm the arrangement with Tri -Land.
S. Section 5.07. Tri -Land has requested removal of
the first sentence of this provision, permitting the City to
specifically enforce the Agreement, and of the last sentence,
permitting the City to recover the Property upon Tri -Land's
failure to complete the Facilities by September 1, 1991. In
addition, Tri -Land has requested that the City's right to
recover damages resulting from a default under the Agreement be
eliminated so that the only remedy for failure to perform by
Tri -Land would be the loss of tax increment. We would propose
that the language of the provision be revised to provide that
damages be limited to payment of the out-of-pocket costs of the
City, and return to the City of any tax increment previously
collected by Tri -Land. (Note statutory concerns with respect
to ~recourse" under the Agreement.)
MAR 07 190 16:15 FAEGRE & BENSON MPLS 612 3363844
P.4/6
9. Section 6.01(8). It was suggested that this
section be revised to make clear that Tri -Land may take action
designed towards obtaining tax-exempt status for the Ice
Arena.
10. Section 6.02. Tri -Land has proposed that Section
(b) of this provision, requiring evidence of compliance with
the 75/25% test prior to any transfer of land, be deleted.
Tri -Land has also requested that with respect to determining
compliance with the 75/25% test in general, an objective third
party be designated to resolve any disputes relating to
compliance. We are comfortable with this for the most part,
except in the case where non-compliance with the 75/25% test is
due to Tri -Land's failure to complete the Facilities as
proposed. The ramifications of non-compliance due to such
non -completion have been identified as an item needing further
discussion.
11. Section 6-04. 'Tri -Land has requested that this
provision be revised to provide that the Agreement itself may
be conveyed to entities related to Tri -Land without the consent
of the City, and that the Property may be conveyed to any party
without the consent of the City.
12. section 6.07. Tri -Land has requested deletion of
the last sentence in this paragraph, providing that Tri -Land
shall be liable to the City, to the extent that any contractor
is liable to Tri -Land, for a breach by such contractor of its
anti -discrimination covenant. we would not object to this
deletion since the provision will still require that all
contracts contain such an anti -discrimination covenant which
will be enforceable by the City against the contractor.
13. Section 6.09. Tri -Land has proposed that this
section be revised to provide that the Ice Arena only (and not
the Facilities as a whole) be required to be insured, and also
to clarify that either Tri -Land or the operating entity may
provide such insurance.
14. Aection 6.10. Tri -Land has requested that this
section be revised to provide only that the City shall not be
responsible for any maintenance or operating costs of the Ice
Arena, as opposed to the current provision which requires
Tri -Land to maintain and operate the Facilities at its own
expense and essentially constitutes a guarantee by Tri -Land of
any operating deficits.
major un.r.esnlyed issues:
(a) Tri -Land has expressed unwillingness to commit
itself, at the time of signing of the Agreement, to a
construction schedule which would provide for to the
/c/
MAR 07 190 16:16 FAEGRE & BENSON MPLS 612 3363844
R.5/6
construction of a minimum amount of estimated market value in
improvements by a specific completion date, if the remedy for
failure to complete such improvements by such date is to be
failure to receive the agreed-upon tax increment. (See
Sections 5.02 and 5.07 of Agreement.) In the absence of such a
provision, and given the impracticability of requiring all of
the proposed commercial improvements (or comparable
substitutes) to be constructed prior to the commencement of
construction of the Ice Arena, the parties discussed what might
serve as an acceptable way to ensure that sufficient commercial
facilities will be constructed to generate the required tax
increment. To address this concern, Tri -Land has proposed (I
think) that in addition to the City's signoff on plans and
specifications, the conditions precedent to issuance of a
building permit for the Ice Arena would include a financing
commitment (accompanied by a construction schedule) for
proposed facilities of an estimated market value sufficient to
generate the required increment. However, Tri -Land seems to be
arguing that even when this second and presumably more certain
timetable is submitted to the City, the Agreement should not
provide that the remedy for non -completion of the commercial
facilities in accordance with such timetable would be failure
to receive any tax increment (although Tri -Land seems to agree
that failure to receive the increment would be an acceptable
remedy for failure to complete the Arena on time). Kris
Chale's major point seemed to be that a lender will not approve
this loan if there is a risk that Tri -Land may lose its right
to all of the tax increment if it is unable to complete 100% of
the Facilities within the required construction schedule. She
also argued that once the Ice Arena has been built, it can only
be to everyone's benefit to have the additions]. Facilities
built whenever possible, even if later than originally
projected, in order to produce tax increment and thus prevent
the Ice Arena from going into default. However, Dave M.'s
concern is that at the point of issuing the building permit for
the Ice Arena, there must be some basis for authorizing an Ice
Arena of a specified quality, based on a projected tax
increment stream dependent upon the two factors of estimated
market value and estimated completion dates. In addition,
Steve Rosholt noted a separate concern regarding compliance
with the 75/25% test, although it was acknowledged that for
purposes of this test, an outside completion date would suffice
which would not satisfy Dave's concerns with respect to
substantiation of the projected tax increment stream.
(b) Another major discussion arose with respect to
Section 6.08 of the Agreement (governing Tri -Land's obligation
to rebuild the Facilities in case of damage or destruction).
The parties agreed that it would be impractical to require
Tri -Land to rebuild the Facilities, or even the Ice Arena
alone, given the virtual certainty that any financing agreement
will require that this be subject to the discretion of the
MAR 07 190 16:17 FAEGRE & BENSON MPLS 612 3363644
P.6/6
lender. However, Dave M, feels strongly that the City should
not be required to continue paying tax increment if the Ice
Arena is destroyed and not rebuilt. Kris Chale acknowledged
this concern but pointed out that the Ice Arena and additional
Facilities may be financed as a package with the Lender's
security to include both insurance proceeds and the projected
tax increment. She argued that under this scenario, if the
Arena only burns down, the lender's position will be seriously
prejudiced since it will lose its right to all of the tax
increment while receiving insurance proceeds with respect only
to the Ice Arena, This issue is to be discussed further with
the City and the Developer.
(c) Is site of Ice Arena to be included in land
write-down area? waiting for results of appraisal to resolve.
(d) Dave M. would like to require an annual financial
audit which would be an operating expense payable by Tri -Land.
He is to look into estimates of the costs for this as Tri -Land
is concezned about the impact on its operating pro formas.
(e) Kris Chale is extremely opposed to two
restrictions contained in Section 6.05 as drafted; namely, the
restriction on the granting of a security interest in operating
revenues and also the prohibition on leasing of icemaking and
resurfacing equipment. Dave M. has agreed to consult with the
City on these points.
3863f
(03
3829f
Q 104ic ma,- ate d
Draft: February 19, 1990
DEVELOPMENT AGREEMENT
relating to
DEVELOPMENT DISTRICT NO. 3
CITY OF EAGAN, MINNESOTA
by and between the
CITY OF EAGAN, MINNESOTA
and
TP.I-LAND PARTNERSHIP OF EAGAN,
a Minnesota general partnership
foq
THIS AGREEMENT, made and entered into as of the
day of February, 1990, by and between the CITY OF EAGAN, a
municipal corporation and political subdivision of the State of
Minnesota (hereinafter called the "City"), and TRI -LAND
PARTNERSHIP OF EAGAN, a Minnesota general partnership
(hereinafter called the "Developer");
WITNESSETH THAT, in the joint and mutual exercise of
their powers, and in consideration of the mutual covenants
herein contained, the parties hereto recite and agree as
follows:
Section 1. Recitals.
1.01 Estahlishmert of Project and Plans. The City has
established Development District No. 3 in and for the City (the
"District"), and approved a Development Program (the
"Development Program") and a Tax Increment Financing Plan (the
"Financing Plan") for the District, pursuant to which the City
has designated a portion of the District as a tax increment
financing district (the ''TIF District"); all pursuant to and in
accordance with Minnesota Statutes, Sections 459.124 to 469.134
and Sections 469.174 to 469.179 (the "Acts").
1.02 Implementation. The Developer has asked the City
C uncil to authorize and direct City officers and staff to take
all actions necessary to implement and carry out the
Development Program and the Financing Plan (collectively, the
"Plans") .
1.03 Private Development. The Developer proposes to
construct on the real property described in the attached
Exhibit A (the "Property") the facilities described in
Exhibit B (the "Facilities"), including a 33,000 square foot_
ice arena (the "Ice Arena"), a retail mall with grocer store
Lthe "Retail Mall"), a bane /�ic�ffic�ilding the
"Office Facility") and a commercial outlot (the "Out o in
accordance with the Development Program. The Developer
represents that the Developer would not undertake the
development of the Property and construction of the Facilities
without the financing provided by the City pursuant to this
Agreement.
1.04 Land Write -Down Assistance. The City has
determined that it is necessary, in order to accomplish the
purposes specified in and to carry out the Development Program,
to acquire the Property forAthe amount of $1,890,000 and to
reconvey the Property to the Developer for a nominal amount in
order to compensate the Developer for Bart of the costs of
constructing the A aciliti,es, such acquisition and reconveyance
to be known hereinafter as the "Land Write -Down."
(of
1.05 Appraisal. The City has received a preliminary
appraisal of the Property showing an appraised value of
1.06 Original Tax Capacity; Tax Increment. The City
shall reques County Auditor of Dakota County to certify to
it the Tax Capacity of all taxable property in the TIF District
as described in the Financing Plan (the "Original Tax
Capacity"). The Tax Capacity of all taxable property in the
TIF District as thereafter determined for each year the
Financing Plan is in effect, less the Original Tax Capacity,
shall be known as the Captured Tax Capacity. The ad valorem
taxes derived from such property in the years the Financing
Plan is in effect, by applying the aggregate tax capacity rate
levied by all governmental entities having authority to levy
taxes on such property to the Captured Tax Capacity, shall be
known as the Tax Increment. Under the Acts, the County Auditor
is required to pay to the City so much of the Tax Increment
received within the period the Financing Plan is in effect, as
is needed to pay debt service on the limited revenue tax
increment note issued by the City with respect to the TIF
District. The City expects to receive such Tax Increment
during the term of this Agreement, and will appropriate and use
the Tax Increment for such purposes as hereinafter provided.
X1.07 Intention to Contract. The City desires to
contract with the Developer to purchase and develop the
Property in accordance with the Development Program, as
specified in this Agreement; and the Developer desires to
contract with the City for this purpose.
A1.06 peveloper. For purposes of this Agreement,
unless and until otherwise agreed by the City in writing, the
term "Developer" includes Tri -Land Partnership of Eagan and any
person or entity to whom the Property is conveyed or
transferred as hereinafter permitted.
Section 2. Representations. Warranties and General
Covenants
2.01 Representations and Warranties by the City. The
City represents and warrants that it is authorized to enter
into and perform its obligations under this Agreement; however,
no part of this Agreement shall be construed as a
representation of the City as to the condition of the Property
or as to its suitability for the Developer's purposes and needs.
2.02 Representations. Warranties a G up—rol Covenants
by the Developer. The Developer represents and warrants that:
(a) The Developer is a general partnership duly
organized and in good standing under the laws of the State
to&
of Minnesota, is authorized to do business in Minnesota and
is in good standing under the laws of Minnesota, is not in
violation of any provisions of its partnership agreement or
the laws of the State and is authorized to enter into and
perform its obligations under this Agreement.
A(b) The Developer has received no notice or
communication from any local, state or federal official or
body that the activities of the Developer respecting the
Property or the construction of the Facilities thereon may
be or will be in violation of any law or regulation.
A`i The execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby and
the fulfillment of or compliance with the terms and
conditions of this Agreement are not prevented or limited
by and will not conflict with or result in a breach of any
provision or requirement applicable to the Developer or of
any provision of any evidence of indebtedness, agreement or
instrument of whatever nature to which the Developer is now
a party or by which it is bound.
(d) The construction of the Facilities world not be
undertaken by the Developer, and in the opinion of the
Developer would not be economically feasible within the
reasonably foreseeable future, without the assistance and
benefit to the Developer provided for in this Agreement.
Section: 3. Land Write -Down.
3.01 Land Write-downA The City agrees to purchase the
Property for a price of $1,850,000, payable by issuance of the
Tax Increment Note described in Section 4 below, and to sell it
back to the Developer for a price of $1, subject to the terms
of this Agreement. Prior to commencement of construction of
any Facilities, Developer shall convey the Property to the City
by quit claim deed. The City shall thereupon reconvey the
Property to the Developer by quit claim deed subject to the
terms of this Agreement.
3.02 Title. The state of title to the Property to be
conveyed by the City to the Developer shall be the same as the
state of title which was conveyed to the City by the
Developer. The City shall have no obligation to take any
action to cure any title defects or encumbrances existing with
respect to the Property.
Section 4. Tax Increment Note.
4,01 issuance of Tax Increment Note. Subject to the
further provisions of this Section, the City shall issue to the
Developer, as the purchase price for the Property, the Tax
l01
Increment Note substantially in the form of Exhibit D hereto,
in the principal amount of $1,890,000. The Developer covenants
and agrees not to sell, transfer or convey the Tax Increment
Note without the express written consent of the City; provided
that the Developer may, without such consent, pledge or grant a
security interest in the Tax Increment Note to a lender (the
"Lender") as security for any debt incurred or obligations
issued ("Related Debt") to finance the acquisition of the
Property or the construction of the Facilities. The Developer
acknowledges that the City makes no representations as to the
adequacy of tax increments available to pay the Tax Increment
Note.
The Tax Increment Note shall bear interest on the
outstanding principal amount thereof atAa rate equal to the
lesser of (i.) 12.00 percent per annum or (ii) the interest rate
charged to the Developer by the Lender with respect to any,
Related Debt, shall be payable in installments as set forth in
Exhibit D, and shall be payable solely from Tax Increments
received by the City from the District. The Tax Increment Note
shall not be a debt of the City or the State of Minnesota, and
neither the City, the State nor any political subdivision shall
be liable on the Tax Increment Note, nor shall the Tax
Incremment Note be payable out of any funds or properties other
than. Tax Increment.
4.02 Tax Increments. The parties agree that all Tax
Increme,ts derived from the Property and the Facilities shall
be used first, to pay administrative costs of the City incurred
in connection with the Development Program which have not been
theretofore reimbursed, in an amount^not to excee
per X e_ar, and second, to pay interest and principal on the Tax
Increment Note when dues
Section 5. Developer Undertakings.
5.01 Deposit of Cash into Escrow Account. In order to
ensure the availability of funds sufficient to complete the
s construction of the Ice Arena, the Developer will place in an
escrow account to be held by the Lender, prior to the issuance
of the Tax Increment Note, cash in the amount of $1,890,000.
Disbursements will be made to the Developer from such escrow
account only for the purposes of paying or reimbursing the
Developer for costs of construction of the Ice Arena.
5.02 Construction o Waci ities. Subject to the terms
and conditions of this Agreement, the Developer agrees to
construct (or cause to be constructed) the acilities upon. the
Property, substantially in accordance with the construction
schedule set forth in Exhibit B hereto and the concept plan
attached as Exhibit C hereto;nprovided that with the consent of
the City, comparable improvements consistent with the City's
general design standards and eligible under the provisions of
X04
Section 6.02 hereof may be constructed in substitution for the
Retail Mali and the Office Building (such substituted
facilities to be included in the definition of "Facilities"
unless the context otherwise requires), and provided further
that the Developer may in its discretion determine not to
undertake the construction of the Outlot or any substituted
facility. Except as expressly provided otherwise herein, no
provision of this Agreement shall restrict the Developer from
the construction of additional improvements on the Property
5.03 Plans and Specifications. Except as otherwise
provided in Section 5.02 hereof, the Developer will develop the
Property and construct thewFari'itiac in accordance with plans
and specifications which conform to the approved concept plan
and development stage plan to be approved by the City Planning
Commission and City Council, the Development Program, this
Agreement, applicable federal, state and local laws,
ordinances, rules and regulations, and the terms and conditions
of all approvals, licenses and permits required to develop the
Property and construct theiFacilities. TheAFArIlitieS shall be
of not less than the quality contemplated by the concept plan
and development stage plan.
5.04 construction Contracts. The Developer shall
enter into one or more contracts with one or more contractors
(the "Contractors") providing for the construction of the
acilities in accordance with this Agreement, the Plans, the
plans and specifications described in Section 5.03, applicable
state, federal and local laws, ordinances, rules and
regulations, and the terms and conditions of the approvals,
licenses and permits described in Section 5.03 hereof.
5.05 Construction progress Repor_t. Subsequent to the
comurpencement of construction of the ;►F'aci iti _a. and until
construction of theoEacil_i LC has been 100% completed in
accordance with this Agreement, the Developer shall, upon
written request of the City, make, in such detail as may
reasonably be required by the City, and shall forward to the
City, a written report as to the actual progress of such
construction; provided, however, that such requests by the City
shall be no more frequent than monthly.
5.O6 Completion Certificate. Upon substantial
completion of the &acil_ities in accordance with Section _
ADjL 5.03, the City shall furnish to the Developer an
appropriate completion certificate so certifying. The
certification by the City shall be (and it shall be so provided
in the certification itself) a conclusive determination of
satisfaction and termination of the covenants in this Section 5
with respect to the obligations of the Developer to construct
theAEacilities and the dates of completion thereof. The
certificate shall be in the form attached hereto as Exhibit E.
A5.07 Enforcement: Damaaes. The Developer acknowledges
the right of the City, in the event of a willful default on the
part of the Developer hereunder, to enforce the terms of this
Agreement against the Contractors and the Developer, by action
for specific performance or damages, or both, or by any other
legally authorized means.
The Developer also acknowledges that its failure to
perform any or all of its obligations under this Agreement may
result in a default with respect to the Tax Increment Note;
that in the event of default by any Contractor or the
Developer, the City may commence legal action to recover all
damages, losses and expenses sustained by the City which result
from such default by the Developer; and that such expenses may
include but are not limited to the reasonable fees of legal
counsel employed with respect to the enforcement of this
Agreement. The Developer specifically acknowledges and agrees
that in the event (i) the Developer fails to commence and
complete the acilities by September, 1991, except to the
extent of delays which are Unavoidable Delays described in
Section 9.03 hereof, or (ii) the Developer fails to comply with
the provisions of Section 6.02 hereof, the Developer shall
surrender the Tax Increment Note to the City and thereafter,
the City shall be under no obligation to pay Tax Increment to
the Developer. In addition, the Developer specifically
acknowledges and agrees that in the event the Developer fails
to corm-nence and complete theAFacilities by September 1, 1991,
then the City, if the default has not been cured by a holder of
a permitted encumbrance as allowed by Section 6.06 hereof,
shall have the right to re-enter and take possession of the
Property and to terminate (and revest in the City) the estate
conveyed by the quitclaim deed from the City to the Developer
described in Section 3.01 hereof, it being the intent of this
provision that such quitclaim deed shall contain a condition
subsequent to such effect.
A5_nR Resale of Reacquired Prooerty: Disposition of
• Proceeds. Upon the revesting in the City of title to and/or
possession of the Property as provided in Section 5.08, the
City shall, pursuant to its responsibilities under law, use its
best efforts to lease or sell the Property as soon and in such
manner as the City shall find feasible and consistent with the
objectives of such law and of the Development Program to a
qualified and responsible party or parties (as determined by
the City) who will assume the obligation of making or
completing the&acilities or such other improvements in their
stead as shall be satisfactory to the City and in accordance
with the uses specified for the Property in the Development
Program. Upon such resale of the Property, the proceeds
thereof shall be applied:
to
(a) First, to reimburse the City for all costs and
expenses incurred by the City, including but not
limited to salaries of personnel, in connection
with the recapture, management, and resale of the
Property (but less any income derived by the City
from the Property in connection with such
management); all taxes, assessments, and water
and sewer charges with respect to the Property
(or, in the event the Property is exempt from
taxation or assessment or such charge during such
period due to ownership thereof by the City an
amount, if paid, equal to such taxes,
assessments, or charges (as determined by the
City assessing official) as would have been
payable if the Property were not so owned by the
City); any payments made or necessary to be made
to discharge any encumbrances or liens existing
on the Property or part thereof at the time of
revesting of title thereto in the City or to
discharge or prevent from attaching or being made
any subsequent encumbrances or liens due to
obligations, defaults or acts of the Developer,
its successors or transferees; any expenditures
made or obligations incurred with respect to the
making or completion of the Facilities on the
Property; and any amounts otherwise owing the
City by the Developer and successor or
transferee; and
(b) Second, to reimburse the Developer, its successor
or transferee, up to the amount equal to (1) the
sum of the purchase price paid by it for the
Property and the cash actually invested by it in
constructing any improvements thereon, less (2)
any gains or income withdrawn or made by it from
the Agreement or the Property.
Any balance remaining after such reimbursements
shall be retained by the City as its property.
6.01 General Restrictions. The Developer agrees for
itself and its successors and assigns and every successor in
interest to the Property or any part thereof that the Developer
and its successors and assigns shall:
(A) not discriminate on the basis of sex, race or
religious, political or other affiliations in the use of
the Property or the Facilities, or any part thereof;
r
(B) not cause the Property or the Facilitiesl^�any-
part
ans
part thereof to be removed from the public tax rolls or to
become exempt from assessment for general ad valorem real
estate taxes by reason of any conveyance, lease or other
action.
6.02 Special Covenant on TIF District. The Developer
acknowledges that the TIF District is an "economic development
district," as defined in Section 469.174, Subdivision 12, of
the Act and, as such, is subject to the limitations provided in
Section 469.176, Subdivision 4c, of the Act. The Developer
covenants that it will, with respect to the Property, observe
and comply, and that it will cause and require any of its
permitted successors and assigns to observe and comply with the
limitations of such Subdivision 4c. In particular, and without
limitation, the Developer covenants that at no time throughout
the term of the TIF District shall 25% or more of the buildings
and other facilities, or portions thereof (determined on a
square footage basis), then within the TIF District be used for
any one or more of the following purposes: retail food and
beverage services, automobile sales or service, the provision
of recreation or entertainment, or any private or commercial
geld course, country club, massage parlor, tennis club, skating
facility (including roller skating, skateboard, and ice
skating), racquet sports facility (including any handball or
racquetball court), hot tub facility, sun tan facility, or
racetrack. By way of illustration of this restriction, the
square footage of any restaurant would be aggregated with the
square footage of all other facilities which are used for
recreation, automobile sales or service, other retail food and
beverage services, or any other of the above-described uses, or
combination thereof, as a basis for determining compliance.
The Developer shall also comply with the following
requirements:
(a) As a condition to the receipt of any
Certificate of Completion, and at any other time upon
written request to the Developer by the City, the
Developer shall certify in writing to the City the
total square footage of the buildings and facilities
that are then constructed, under construction, or
proposed for any property within the TIF District,
together with the total square footage of such
buildings and facilities which are used or anticipated
to be used for any of the above-described purposes.
(b) As a further condition precedent to any
assignment, sale, or other disposition by the
Developer of any portion of this Agreement or any
property within the TIF District, the Developer shall
provide to the City the certificate described above, a
C-1
description of the intended uses of the subject
property, and copies of all documents related to such
assignment, sale, or other disposition. If the City
determines that there is a reasonable basis for
concluding that the Developer has breached its
obligations under this Section 6.02 with respect to
the limitations of Subdivision 4c by any such
transfer, the City may refuse to consent to such
transfer until its receives assurance deemed
reasonably satisfactory by the City (which may include
the inclusion within the applicable documents of
transfer specific covenants relating to said
limitations) that such obligations will not be
breached with respect to the TIF District.
f
MIOM
6.03 Covenants. It is intended and agreed that the
covenants in Sections 5.02, 6.01 and 6.02 shall be covenants
running with the land binding to the fullest extent permitted
by law and equity for the benefit and in favor of, and
enforceable by, the City, its successors and assigns. The
covenants in Sections 5.02, 6.01 and 6.02 shall remain in
effect so long as the Tax Increment Note is outstanding.
6.04 Restrictions on Conveyance: Financing. The
Developer has not made, and will not make or suffer to be made
prior to the issuance of the completion certificate described
in Section 5.06, any sale, assignment or other ownership
transfer in any other fora of this Agreement or the Property or
any improvements thereon, or any part thereof or any interest
therein, or contract or agree to do any of the same, without
the written consent of the Cityn
6.05 Financing of the Property and Facilities. It is
understood that the Developer may mortgage the Property and the
Facilities and grant a security interest therein or in its
interest therein for the purpose of securing the payment ofA.ny
Related Debt if theALender acknowledges and agrees to the terms
of this Agreement; p'r'ovided that the Developer shall not assign
or grant a security interest in any of the revenues of the
Facilities, and provided further that all icemaking and
resurfacing equipment necessary to the operation of the Ice
Arena shall be purchased by the Developer, its successors or
assigns and shall not be leased or be subject to any
lease -purchase or similar agreement.
6.06 Notice of Default. Whenever the City shall
deliver any notice or demand to the Developer with respect to
any breach or default by the Developer in its obligations or
covenants under this Agreement, it shall at the same time
forward a copy of such notice or demand to each holder of any
permitted mortgage, lien or other similar encumbrance on the
Property or the Facilities at the last address of such holder
shown in the real estate records of the County or as otherwise
known to the party delivering such notice or demand. Each such
holder shall have the right, at its option, to cure or remedy
such breach or default and to add the cost thereof to the
mortgage debt and the lien of its mortgage or lien; provided,
that if the breach or default is with respect to construction
of the AFacilities, such holder, either before or after
foreclosure or action in lieu thereof, shall undertake or
continue the construction and completion of thettacilities in
accordance with this Agreement. Any such holder who shall
properly complete the�Zac l ties shall be entitled, upon
written request made to the City, to a certification or
certifications by the City to such effect in the manner
provided in Section 5.06.
6.07 No Discrimination. The Developer, for itself and
its successors and assigns, agrees that in the construction of
the,Lacilities the Developer will not discriminate against any
employee or applicant for employment because of race, color,
religion, sex or national origin. The Developer will require
that each Contractor acknowledge the provisions of this Section
6.07 and each contract for construction of theAFacil_ities shall
ccnta-Ln a covenant by the Contractor that the Contractor shall
net discriminate against any employee or applicant for
employment because of race, color, religion, sex or national
origin, and acknowledging that the City may enforce such
provision against the Contractor. The Developer shall not be
liable to the City (except to the extent, if any, that the
Contractor is liable to the Developer) for any breach of such
covenant by any Contractor.
6.08 Destruction of Facilities. So long as the Tax
Increment Note is outstanding, in the event of destruction of
all or a substantial portion of thegacilities, the Developer
shall as soon as reasonably possible and in any event on or
before the second succeeding December 31 following such
destruction, time being of the essence, repair, rebuild or
replace theltacilities to at least the condition and value
j thereof at the time of the damage or destruction, except as
otherwise provided in Section 6.09 hereof.
6.09 Insurance. During theilife of the TIF District,
the Developer shall maintain (or cause to be maintained) with a
reputable insurance company or companies licensed to do
business in Minnesota, insurance covering theAFacilifies in
such reasonable amounts as are customarily carried on
properties of the same general use and character as the
Facilities. The policies may be subject to a reasonable
deductible clause.
Policies of insurance procured pursuant to this
Section shall bWayable to the Developer, and shall provide
(4
for release of insurance proceeds to the Developer for
restoration of loss, unless any Lender shall require
application of such proceeds to the resolution of its debt, in
which event the Developer shall have no obligation to provide
funds for restoration of the Facilities. The Developer shall
furnish to the City, on or before the inception of this
Agreement, evidence that the insurance coverage required under
this Agreement will be in full force and effect at all times
during the period of the Agreement. Such evidence of insurance
shall be in the form of a standard Certificate of Insurance, or
such other form as the City may, in its sole discretion,
determine to accept as evidence of insurance. At the request
of the City, the Developer shall, in addition to providing such
evidence of insurance, promptly furnish the City with a
complete copy of each insurance policy intended to provide
overage required hereunder.
86.10 Maintenance and Operating Expenses. The
Developer, its successors and assigns agree to maintain the
AFacilities at its expense, and to pay all operating costs of
the Facilities and any additional improvements constructed on
the Property, during the life of the TIF District.
IE6.11 Access to Property. The Developer shall permit
and does permit the City access to the Property for any purpose
deemed necessary by the City for carrying out the provisions of
this Agreement.
Section 7. Security For Tax Increment Note.
7.01 Tax Increments; Use and Investment. The
Developer acknowledges the right of the City to pledge the Tax
Increments derived from the Property and the Facilities to the
payment of principal of and interest on the Tax Increment Note
in accordance with Section 4.02, to deposit the Tax Increments
in the funds established for the payment of the Tax Increment
Note for this purpose not more often than twice yearly; and to
invest or direct the investment of such Tax Increments in
accordance with Minnesota Statutes, Section 475.66 and retain
the interest earnings on such moneys to pay expenses incurred
by the City.
8.01 The Developer releases from and covenants and
agrees that the City and the governing body members, officers,
agents, including its independent contractors, consultants and
legal counsel, servants and employees thereof (hereinafter, for
purposes of this Section, collectively the "Indemnified
Parties") shall not be liable for and agrees to indemnify and
hold harmless the Indemnified Parties against any loss or
damage to property or any injury to or death of any person
<OK
occurring at or about or resulting from any defect in the
Property or any improvements constructed thereon.
8.02 Except for any willful misrepresentation or any
willful or wanton misconduct of the Indemnified Parties, the
Developer agrees to protect and defend the Indemnified Parties,
now and forever, and further agrees to hold the aforesaid
harmless from any claim, demand, suit, action or other
proceeding whatsoever by any person or entity whatsoever
arising or purportedly arising from this Agreement, or the
transactions contemplated hereby or the acquisition,
construction, installation, ownership, and operation of the
Property or any improvements constructed thereon, specifically
including but not limited to the Developer's failure to comply
with the provisions of Section 6.02 hereof; provided that this
indemnification shall not apply to the warranties made or
obligations undertaken by the City in this Agreement.
8.03 All covenants, stipulations, promises, agreements
and obligations of the City contained herein shall be deemed to
be the covenants, stipulations, promises, agreements and
orlications of the City and not of any governing body member,
officer, agent, servant or employee of the City.
Section 9. General Provisions.
9.01 Conflicts of Interest: Representatives Not
Individually Liable. No officer or employee of the City shall
have any personal interest, direct or indirect, in this
Agreement, nor shall any such officer or employee participate
in any decision relating to this Agreement which affects his or
her personal interests or the interests of any corporation,
partnership or association in which he or she is, directly or
indirectly, interested. No officer or employee of the City
shall be personally liable to the Developer in the event of any
default under or breach of this Agreement by the City or for
any amount which may become due to the Developer or for any
obligation issued under the terms of this Agreement.
9.02 Rights Cumulative. The rights and remedies of
the parties to this Agreement, whether provided by law or by
this Agreement, shall be cumulative, and the exercise by any
party of any one or more of such remedies shall not preclude
the exercise by it, at the same or different times, of any
other such remedies for the same default or breach or of any of
its remedies for any other default or breach of anv party. No
waiver made by any such party with respect to the performance
or the manner or time thereof, of any obligation under this
Agreement, shall be considered a waiver with respect to the
particular obligation of any other party or a condition to its
own obligation except those expressly waived in writing and to
the extent of such written waiver, nor shall it be considered a
tN
waiver in any respect in regard to any other rights of the
party making the waiver of any obligations of any other party.
Delay by a party hereto instituting or prosecuting any cause of
action or claim hereunder shall not be deemed a waiver of any
rights hereunder.
9.03 Unavoidable Delays. Wherever used in this
Agreement, the term "Unavoidable Delay" shall mean a delay
resulting from a cause over which the party required to perform
does not have control and which cannot or could not have been
avoided by the exercise of reasonable care, including but not
limited to acts of God, accidents, war, civil unrest,
embargoes, strikes, unavailability of raw materials or
manufactured goods, litigation and the delays of the other
party or its contractors, agents or employees in the
performance of their duties under or incident to this
Agreement.
9.04 Recording. The Developer shall cause this
Agreement- to be recorded in the office of the County Recorder
or Registrar of Titles or both, as appropriate, of Dakota
County, Minnesota, immediately following the recording of the
Deed conveying title to the Property to the Developer.
9.05 Annual Disclosure. The Developer shall cooperate
with the City in furnishing information in a timely manner in
order to file reports as required by Minnesota Statutes,
Section 469.175(5) and (6), provided nothing in this Section
shall be construed as obligating the Developer to provide
financial information concerning its business except as the
same is directly pertinent to the determinations to be made
from such reports.
9.06 Estoppel Certificates. Either party shall, upon
not less than twenty (20) days' written notice from the other
party, execute and deliver to the other party or to any person
or entity designated by it a certificate stating that this
Agreement is in full force and effect (if such is the case),
that this Agreement has not been modified or amended, or, if it
has, specifying the modifications or amendments, and that to
the best of the knowledge of the certifying party, the other
party is not in default hereunder or, if a default is claimed,
specifying the default.
9.07 Override Provision. Notwithstanding any other
provisions of this Agreement actually or apparently to the
contrary, nothing herein is intended or shall be interpreted to
give or convey to the City any interest in the Property or in
the Facilities.
Section 10. Administrative Provisions.
10.01 Notices. All notices, certificates or other
communications required to be given to the City and the
Developer hereunder shall be sufficiently given and shall be
deemed given when delivered or deposited in the United States
mail in registered form with postage fully prepaid and
addressed as follows:
If to the City City Administrator
City Hall
3830 Pilot Knob Road
Eagan, Minnesota 55122
If to the Developer Tri -Land Partnership
of Eagan
1875 Plaza Drive, #200
Eagan, MN 55122
Either party, by notice given hereunder, may designate
different addresses to which subsequent notices, certificates
or other communications will be sent.
10.02 Binding Effect. This Agreement shall inure to
the benefit of and shall be binding upon the City and the
Developer and their respective permitted successors and
assigns.
10.03 IcLeverability. In the event any provision of
this Agreement shall be held invalid or unenforceable by any
court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision hereof.
10.04 Amendments. Changes and Modifications. This
Agreement may be amended or any of its terms modified only by
written amendment authorized and executed by the parties.
10.05 Further Assurances and Corrective Instruments.
The parties agree that they will, from time to time, execute,
acknowledge and deliver, or cause to be executed, acknowledged
and deliver, such supplements hereto and such further
instruments as may reasonably be required for correcting any
inadequate or incorrect description of the Property or the
Facilities, or for carrying out the expressed intention of this
Agreement.
10.06 Execution in Counterparts. This Agreement may
be simultaneously executed in several counterparts, each of
which shall be an original and all of which shall constitute
but one and the same instrument.
10.07 Applicable Law. This Agreement shall be
governed by and construed in accordance with the laws of the
State of Minnesota.
10.08 Captions. The captions or headings in this
Agreement are for convenience only and in no way define, limit
or describe the scope of intent of any provisions or Sections
of this Agreement.
IN WITNESS WHEREOF, the City has caused this Agreement
to be executed in its corporate name by its duly authorized
officers and sealed with its corporate seal and the Developer
has caused this Agreement to be executed in its corporate name
by its duly authorized officers, as of the date first above
written.
(SEAL)
CITY OF EAGAN
By
Its Mayor
And
Its City Administrator
TRI -LAND PARTNERSHIP
OF EAGAN
By
And
I lq
Its Partner
Its Partner
•
SPRINQSTED
PUBLIC FINANCE ADVISORS
85 EAS, Sevenlh Piece, Suite 100
S.airr► Paul. MN 55101.2143
(612) 223.3000
Fax 612 223 3002
March 16, 1990
Mr. Thomas Hedges, Administrator
Eagan City Hail
3830 Pilot Knob Road
Eagan, MN 55122
Re: Current Status of Negotiations with Tri -Land on Ice Arena TIF Project
Dear Mr. Hedges:
This past week we have continued our discussions with Tri -Land on negotiating a
development agreement. Significant progress has been made on several major points, but
final resolution on a number of Items still remain. Our objective here Is to update the City on
the progress to date and the changes in positions detailed in our letter, attached, of March 9,
1990.
The March 9, 1990 letter Indicated three major financial positions which we determined
should be of significant concern to the City. These three areas were: 1) construction
financing of the ice arena; 2) coverage of operating deficits; and 3) insurance. Following is a
brief history of the results of discussions with Tri -Land to work towards agreement In these
areas.
1. Construction Financing of the Ice Arena
Our concern on March 9, 1990 was the City's risk of two alternative potential
scenarios: 1) construction bf the arena would commence and the balance of the
commercial development would not generate sufficient increment to fully fund the
oost of the arena; or 2) construction of the arena would not commence until after
completion of whatever level of commercial development actually occurs, and that
level would then be insufficient to fully fund the arena.
In either case, potential exists that the City would be approached to provide
supplemental funding.'
Based on meetings to date, the following points have been discussed to mitigate our
concerns;
A) Prior to construction of the arena, the following conditions would exist:
I . City and developer would agree on the plans and specillcations of the
arena;
2. Lending commitments would exist on all commercial development;
I"'an9 Office
135 Nofllr Perrnsvivano Strca►.
SLplo "T15
Inclianapolis, IN 4620,14,1441`1
1317) 684.6000
►largo^ Oil# o
15830 Crrliepe Soulevarc;
5l.!•►e 600
(Trossa: r. Pa.h WS x,0211.1533
(913) JIh-8067
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W sr unuin Mow
600 Elm Grove Woar1
Su'7V 101
Flr- c3rove. WI 53122 0031
(eta) 782.8222
Fa* C4 ikl1-:4(14
Mr. Thomas Hedges, Administrator
March 1 e, 1990
Page 2
3. Construction of the commercial development would begin on 25%, by
market value, of the total anticipated commercial development;
4. The development would have in place a combination of sources from
Increment income and other non -City funding to fully finance
construction of the ice arena; then
5. The developer would commence construction prior to May 30, 1991.
If developer does not satisfy these points, the City has no further commitment under
the development agreement.
B) If the arena is not completed per the agreed-upon plans and specifications,
then the City is not required to provide TIP assistance.
Please note the final start date of the arena, May 30,1991, which was proposed by
Tri -Land.
2. Coverage of Operating Deficits
Our concern on March 9, 1990 was that the coverage of operating deficits was
undefined and as such, the City could potentially be approached by the nonprofit
management group to provide funding. This concern was raised by the prospect of
the lender having access to the gross (all) revenues of the arena.
Based on discussions to date, the developer would commit to provide funding of all
operating deficits on arena operations through the period of the TIF assistance,
which is expected to be eight years. This coverage Would include any draws on the
revenues of the facility by the lender.
We addressed our addlUonal concerns as to the immediate funding source for the
coverage of these deficits. it has been the developer's contention that the funding
source for operating deficits would be an operating reserve which would be
generated from the operation of the facility. We have concbrns as to the timeframe
over which such an operating reserve could be funded through the operations of the
arena, We have therefore proposed that the developer provide an upfront cash
reserve to cover operating deficits In an approximate amount of $20,000-530,000; the
final amount remains to be negotiated, lis the arane generates its own operating
reserves, these funds could be supplemented for the upfront cash deposit by the
developer and its funds returned. In no event would the reserve level fall below the
amount specified in t8b development agreement.
We had also noted our concern that the financial audit of the arena occur on an
annual basis. We believe this Is In the best Interests of all parties, developer, City and
a nonprofit management group. There Is agreement between the developer and the
City that such an audit would be deslrable and we are continuing to discuss the level
and funding source for the audit.
5
Mr. Thomas Hedges, Administrator
March 16, 1994
Page 3
3. insurance
Our concern on March 9, 1990 was that the Issue raised by the developer was that
the lender may require that, in the event the arena was destroyed, all insurance
proceeds would go to the lender and the City would also be required to continue to
make TIF payments under the agreement.
Based on discussions to date, we have further defined the City's exposure in this
area. The developer submits that rebuilding the arena may not be totally under Its
control and that a joint decision between the developer and the lender in the event of
destruction of the Ice arena would be made. The developer would commit to
rebuilding the facility In the development &greement which would then shift the final
decision to agreement by the lender. We haiY6 agreed that In the event of destruction
of the facility and that facility not being rebuilt from the insurance proceeds, the City
would have no further TIF obligation under the development agreement.
Our discussions thus far have focused on these three points and we believe there is
significant progress In these areas. On March 9 we also distributed to the City copies of
notes from Kristin Karls detailing other negotiating issues raised In discussions to date.
Although some or all of these points have been discussed with Tri -Land and some degree of
concensus achieved, we recommend the City review these points before final inclusion in the
agreement.
We would be glad to respond to any questions that you may have regarding the items
contained in this letter or other aspects of Tri -Land's project.
Respectfully,
00 N
David N. MaCGIllivray 1
Vice President
mll
cc: Tri -Land Companies
Extract of Minutes of Meeting of the
City Council of the City of Eagan
Dakota County, Minnesota
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Eagan, Minnesota,
was duly held at the City Hall in said City on Tuesday, the
20th day of March, 1990, at o'clock, P.M.
The following Councilmembers were present:
and the following were absent:
Councilmember
introduced the
following written resolution and moved its adoption:
RESOLUTION APPROVING DEVELOPMENT AGREEMENT
FOR DEVELOPMENT DISTRICT NO. 3
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
EAGAN, MINNESOTA AS FOLLOWS:
1. This Council has approved a Development Program
and created a Tax Increment Financing District for Development
District No. 3. There has been submitted to this Council a
form of Development Agreement relating to Development District
No. 3 proposed to be entered into between the City and Tri -Land
Partnership of Eagan.
2. The Development Agreement is hereby approved and
the Mayor and City Clerk are authorized to execute the same in
substantially the form on file, but with all such changes
therein not inconsistent with law as said officers may approve,
which approval shall be conclusively evidenced by the execution
thereof.
The motion for the adoption of the foregoing
resolution was duly seconded by Councilmember
and upon vote being taken thereon the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
3545e
a
I �
STATE OF MINNESOTA }
)
COUNTY OF DAKOTA ) SS.
CITY OF EAGAN )
I, the undersigned, being the duly qualified and
acting City Clerk of the City of Eagan, Minnesota, hereby
certify that I have carefully compared the attached and
foregoing extract of minutes of a regular meeting of the City
Council of said City held March 20, 1990 with the original
thereof on file and of record in my office, and the same is a
full, true and complete transcript therefrom.
Witness My hand officially and the seal of the City
this day of
3545e
, 1990.
City Clerk
City of Eagan, Minnesota
OW--.
EXTENSIONIPRELIMINARY PLArCOUNTRY HOLLOW 2ND ADDITION
A. Extension, Preliminary Plat for Country Hollow 2nd Addition --This item was continued
from the March 6, 1990 agenda to allow staff to compile additional info ation concerning
the circumstances surrounding this application. Attached on pages through Ayou
will find a memorandum from the Community Development Department outlining a brief
history of this application. You will note that Country Hollow 2nd Addition originally
received preliminary plat approval on April 19, 1988. Final plat approval was originally
granted on October 6, 1988. The preliminary plat has been extended once and the final
plat appears to have been extended twice. The most recent action item from the
September 5, 1989 City Council meeting was listed in the agenda as Extension to
Preliminary Plat/Final Plat, Country Hollow 2nd Addition. In the packet information
pertinent to that item, it was indicated that the extension of the preliminary plat to
November 30, 1989 would permit the Community Development Department to process the
final plat application sometime during October or November.
Despite this background information, the action reflected in the minutes is merely the
extension of the preliminary plat to November 30, 1989. Because the action is silent on
the matter of the final plat, it was originally not clear whether the final plat was extended,
extended for a typical 60 days to November 5 or extended concurrent with the preliminary
plat to November 30. Since the ordinary 60 day extension would have expired prior to
either of the Council meetings in November of 1989, it would appear to have been the
Council's intent that the preliminary plat and final plat extensions expire concurrently on
November 30.
It appears that the developer issued checks for park fees and escrow fees on November
17, 1989 in reliance on the November 30, 1989 date. Upon learning of staff's
interpretation of how the extension had run on November 5, the developer determined to
apply for an extension and to modify the treatment of the northeast outlot as it was
previously platted. Efforts to meet City requirements with regard to this change resulted
in an application being filed December 14, 1989, which was too late to be placed on the
Council agenda prior to 1990.
Due to the need for Council clarification as to its intent taken its action on September
5, 1989 and as a consequence of the process time necessary for the revisions in the plat
extension, the developer is requesting that 1989 fees be applied to the entire project. A
copy of the developer's correspond;3;6hroughg&
.this res well as the options available to
the Council are enclosed on pages
Agenda Information Memo
March 20, 1990 City Council Meeting
ACTION TO BE CONSIDERED ON THIS ITEM: 1) To approve or deny an extension
of the preliminary plat for Country Hollow 2nd Addition as presented on March 6, 1990
and 2) to approve or deny the applicant's request to allow 1989 fees for the entire project.
(z�
TO: Jim Sturm City Planner
FROM: Marlene Zaleznick, Planner I
DATE: March 13, 1990
SUBJECT: Preliminary Plat Extension, Country Hollow 2nd Addition
The applicant, Progress Companies, Inc., is requesting preliminary
and final plat extensions for the above -referenced project. The
applicant is also requesting a waiver of 1990 fees in lieu of 1989
fees. The request for extension of preliminary plat went before
the Council on March 6, 1990. Action on the final plat was not
scheduled for the March 6 meeting to allow staff sufficient time
to review the revised grading plan submitted by the applicant. In
addition, the development contract could not be finalized until the
approriate fee schedule was determined by the Council. At the
March 6 meeting, the Council requested additional clarity on prior
plat extensions and continued this item until March 20.
Since the March 6 meeting, staff has met with the applicant to
discuss the project chronology and the applicant's fee request.
For information, previous approval actions for this project are
summarized as follows:
The preliminary plat was originally approved on April 19, 1988 and
extended on September 5, 1989. Final plat approval was granted on
October 6, 1988 and twice extended on January 17, 1989 and
September 5 1989. The minutes from the September 5 meeting state
that the preliminary plat was extended until November 30, 1989.
They are unclear as to the action taken on the final plat. Under
the assumption, that the final plat was reapproved for the standard
60 day recordation time, per Section 13.10 Subdivision 5 of the
City Code, a resolution was prepared listing November 5, 1989 as
the extension date. An interpretation could also be made that the
final plat was extended to November 30, 1989 along with the
preliminary plat (see attached minutes from September 5, 1989).
No additional information regarding the final plat extension date
is available.
Staff also discussed the fee waiver request at the meeting with the
applicant. The applicant paid the park dedication fees and the
contract management escrow fee at the 1989 rates in December 1989.
The applicant also has an active letter of credit originally
approved with the final plat on October 6, 1988. The Council has
three options in regard to the applicant's request:
1. Impose 1990 fees for the entire project as the final plat will
be reapproved in 1990;
2. Impose 1990 rates for only those fees which have not yet been
paid. This would apply to assessments identified in the
development contract;
3. Allow 1989 fees for the entire project.
The applicant is requesting the third option.
ATTACHMENTS:
1. Letter from applicant requesting plat extension.
2. September 5, 1989 minutes.
cc: Tom Hedges, City Administrator
Dale Runkle, Community Development Director
(1J
Progress Companies, Inc.
CONSULTING ENGINEERING,
LAND PLANNING AND DEVELOPMENT
14300 NICOLLET COURT SUITE 235 BURNSVILLE, MN 55337
(612) 435-3115
December 27, 1989
Honorable Mayor and Council
City of Eagan
3830 Pilot Knob Rd.
Eagan, MN 55122
Re: Country Hollow Second Addition
Dear Mayor and Council,
As a result of some unusual circumstances, I am requesting another
extension for the preliminary and final plats of Country Hollow Second
Addition. On September 5, 1989, the council extended the preliminary
plat until November 30, 1989 and the final plat apparently until
November 5, 1989. After receiving a copy of the minutes, I was under
the impression that the preliminary and final plats were extended
until November 30, 1989.
On November 17, 1989 I had checks issued to pay the park fees and
escrow fee. I called Marilyn to tell her I was submitting the final
plat and she informed me that the final plat expired on November 5 and
I would need another extension.
Since the extension was required and I knew Coventry Pass was going to
be platted next summer I decided that it would be beneficial to
eliminate the need to separately plat the northeast lot, which had
been an outlot. I was told by engineering that the outlot could be
converted to a lot if a temporary turn -around easement was provided.
I then went through a time consuming process with Mike Foertsch and
Ron Helmer of United Mortgage to determine where the easement would be
located. After a few weeks of calling back and forth it was decided
to place the easement on the newly created lot.
After completing this process, I submitted the plat on December 14,
1989. Shortly thereafter, Ed Kirsch told me that the plat would go to
council after the first of the year, and the new 1990 rates would be
in effect. Due to the circumstances previously mentioned and the the
fact the city has already received and cashed the checks for park fees
and escrow fees, I respectfully request that the council waive the
increase in fees for this subdivision.
Thank you for your consideration of this request.
Sincerely,
4 /' I ,I &X
ao K' _ka4yt� Warren J. Israelson (�,
cc Dale Runkle
l30
Page 5/EAGAN CITY COUNCIL MINUTES ;
September 5, 1989
N. Final Plat for Kingswood 4th Addition.
Councilmember Gustafson asked if all necessary agreements had
been processed. City Administrator Tom Hedges stated that the
matter was in order.
It was recommended to approve the final plat for Kingswood 4th
Addition as presented. $-89.48
0. Final Plat for Woodlands 3rd Addition.
Councilmember Gustafson asked if all materials had been
processed. City Administrator Tom Hedges stated the matter was in
order.
It was recommended to approve the final plat for Woodlands 3rd
Addition as presented. R-89.49
P. Final Plat for Manor Lake 2nd Addition.
City Administrator Tom Hedges recommended continuing the
matter to the September 19, 1989 City Council meeting.
It was recommended to continue the final plat for Manor Lake
2nd Addition to the September 19, 1989, City Council meeting.
Q. Final Plat for Sterns Addition.
Councilmember Gustafson asked if the matter was in order. City
Administrator Tom Hedges stated that all documents had been
processed.
It was recommended to approve the final plat for Sterns
Addition as presented. R-89.50
R. Extension of Preliminary Plat/Final Plat for
ow 25d Addition.
It was recommended to approve the extension of the preliminary
plat for Country Hollow 2nd Addition until November 30, 1989. R-89.51
S. Final Plat for Suncrest Addition.
Councilmember Gustafson asked if all matters were in order.
City Administrator Tom Hedges stated that all documents had been
finalized.
It was recommended to approve the final plat for Suncrest
Addition as presented.
R-89.52
\3\
Agenda Information Memo
March 20, 1990 City Council Meeting
CONDITIONAL USE PERMUU VIER'S RESTAURANT ON -SALE LIQUO
B. Conditional Use Permit, Xavier's Restaurant to Allow On -Sale Liquor in a CSC
District, 1260 Town Centre Drive/Town Centre Shoppes--A public hearing was held by the
Advisory Planning Commission at a regular meeting held on November 28 to consider an
application submitted by Xavier's Restaurant for a conditional use permit for on -sale
liquor. At that meeting the APC recommended approval of the conditional use permit.
The Council first heard this item at its December 5, 1989 City Council meeting. At that
time, the item was continued until the same meeting at which off -sale liquor license
applications were received. The item was next heard at the February 20, 1990 City
Council meeting, at which time it was continued until the March 6, 1990 meeting pending
submission of all financial data necessary for staff's recommendation on this item. The
item was next heard at the March 6, 1990 City Council meeting, at which time the item
was again continued in order to allow a financial review of the applicant.
As of Friday, March 16, 1990, the person selected to perform the financial analysis of
Xa,der's Restaurant had not received from Xavier's the required documentation that he
will need in order to make that analysis. Even if he did receive it between now and the
Council meeting on March 20, 1990, it may not be possible to complete the analysis in the
allotted time. Therefore, it may be necessary to continue this item indefinitely until the
information is furnished and the analysis is performed. If any further information is
received on this item, it will be forwarded to the Council with the Administrative Agenda
packet on Monday, March 19, 1990.
ACTION TO BE CONSIDERED ON THIS ITEM: Unless information is furnished by
Xavier's as previously required, to continue this item indefinitely.
1Si
Agenda Information Memo
March 20, 1990 City Council Meeting
ON -SALE LIQUOR LICENSELXAVIER'S
C. License, On -Sale Liquor License Application, Xavier Incorporated --The considers
of this item is contingent upon the consideration of the conditional use permit for Xavi
Restaurant to allow on -sale liquor in a CSC district. The hearing history of this iter
much the same as the conditional use permit application described in the previous it
Council has been sent a copy of the liquor license application as a separate enclosure I
the previous packet. Because the required information has not yet been supplied
Xavier's as described in the previous item, it will probably be necessary to also conti
this item indefinitely.
ACTION TO BE CONSIDERED ON THIS ITEM: Unless information is furnishec
Xavier's as previously required, to continue this item indefinitely.
(5'5
Agenda Information Memo
March 20, 1990 City Council Meeting
FINAL PLAT EXTENSION GAN EVANGELICAL CHURCH
A. Extension of Final Plat, Eagan Evangelical Church, 581 Atlantic Hills Drive --The City
of Eagan has received a request from Eagan Evangelical Covenant Church for an
extension of final plat. The preliminary plat for this project was approved at the August
15, 1989 City Council meeting and is due to expire August 15, 1990. Final plat approval
was given to this project at the February 6, 1990 City Council meeting; that approval
expires April 6, 1990. On March 7, 1990, the City received a call from the applicants'
representative indicating that the April 6 recording date deadline might not be able to be
met. A letter was receive,9 on March 14, a copy of which is enclosed for the Council's
information on page , requesting a final plat extension to April 30, 1990, due to a
technical matter which had to be worked out. The Community Development Department
has no objection to this period of extension.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve or deny an extension of
final plat until April 30, 1990 for Eagan Evangelical Covenant Church.
134
March 12, 1990
Mr. Thomas Hedges
City Administrator
3830 Pilot Knob Road
Eagan, MN 55122-1897
Re: Eagan Evangelical Covenant Church
Dear Mr. Hedges,
the
ADKINS
ASSOCIATION
inc
ARCHITECTS
The plat on the above referenced project was not filed within the 60
days from final plat approval due to unresolved issues in the Agreement
Providing Alternative Security. The issue was technical and not a
monetary problem. We understand that these issues have now been re-
solved. We would like to file the plat so that a building permit can
be issued and above grade construction can begin by April 19 1990.
A filing extension is therefore requested to April 30, 1990.
Sincyerely_9
thCADK .S AS OCIATION inc.
Y ` ,
1 �
By R ger W. Sjob ek, AIA
RWS:Mlg
cc: Dale Runkel, City of Eagan
Marlene Zaleznick, City of Eagan
David Bain
13%
�
901 Jefferson Ave.
St. Paul, MN 5 510 2
FAX 224-6621
Telephone 224-1358
Agenda Information Memo
March 20, 1990 City Council Meeting
RECOMMEND_ ATION AIRPORT RELATIONS CO APPOINTMENTS TO
CORRIDOR BLUE RIBBON PANEL
B. Recommendation, Airport Relations Committee, Appointments to Corridor Blue
Ribbon Panel --In action taken at its November 7, 1990 meeting, the Metropolitan Aircraft
Sound Abatement Council (MASAC) took action to refer the Eagan/Mendota Heights
issue to a blue ribbon panel consisting of representatives of the Metropolitan Airports
Commission, the Metropolitan Council, MASAC and the Cities of Mendota Heights and
Eagan. Northwest Airlines, the Minnesota Pollution Control Agency and the FAA will
serve as technical advisors to the group. As proposed, each City will receive two positions
on this task force to be appointed at their discretion.
As it was proposed, the task force will be a decision-making body intended to bring the
resources of the MAC to bear to solve the corridor issue. The purpose of the make-up
of the body is to draw together decision -makers and experts capable of proposing a
resolution to this issue and carrying it back to the respective boards and councils. The
recommendation of this body will go to the Metropolitan Airports Commission for
approval and implementation with the FAA.
In official action taken at its Tuesday, March 13, 1990 meeting, the Eagan Airport
Relations Committee recommended that the City Council appoint the following as its
representatives to the task force:
1) the Mayor or member of the City Council and
2) the Assistant to the City Administrator or the City Administrator.
At the present time, it appears that this group will be meeting with some frequency, on
the order of once a week over the next three months to bring about a timely resolution.
Staff will be meeting with MAC staff late Friday, March 16, 1990 to better define the
meeting schedule. As a consequence of the high degree of frequency of these meetings
and the demands of everyone's schedules, it may be appropriate for the Council to also
identify alternates to their appointments of these positions to be certain that the City is
always represented by at least two authorized representatives at every meeting.
In related action, the Committee also identified and recommended a list of possible
guidelines for the City's task force representatives tAuse in their negotiations. Those
guidelines are enclosed for your review on page LU. These guidelines were discussed
by Committee members with various representatives of ENAC, the citizens noise
abatement group, and they appear to have general support from the group. The
guidelines are generally consistent with previously stated City policies. If it is in the
interest of the City Council, staff would suggest that background and further information
on this issue be placed on a future City Council workshop agenda for discussion.
�3(z
Agenda Information Memo
March 20, 1990 City Council Meeting
ACTION TO BE CONSIDERED ON THIS ITEM: 1) To appoint two City
representatives to the Eagan/Mendota Heights Corridor Blue Ribbon Task Force, 2) to
appoint two or more alternates to the Corridor Task Force and 3) to accept the
recommended guidelines for the Blue Ribbon Task Force and to direct staff to place the
same on a workshop agenda in the near future.
Agenda Information Memo
March 20, 1990 City Council Meeting
SIMILAR USE DETERMINATION EN CLIMIBIACKHAWK PLAZA
C. Determination of Similar Use, Blackhawk Plaza/Haven Enterprises, Teen Club in NB
(Neighborhood Business) District --Steven L. Ramsey of Haven Enterprises, owner of
Blackhawk Plaza, have proposed a teen club use for their center. The center, located on
Diffley and Blackhawk Road is zoned NB (neighborhood business). Teen clubs are not
specifically listed in the zoning code as a permitted, conditional, or permitted accessory
use. The City Code states: "No structure or land shall be used except for one or more
of the following uses or uses deemed similar by the Council." Haven Enterprises is
requesting the Council make a determination as to the similarity of this teen club use to
other uses in the NB district, such as restaurants with sit-down facilities only, clubs, lodges,
sports and health clubs, and amusement devices. A meeting is scheduled with Community
Development staff and the concerned parties for 2:00 p.m. on Monday, March 19, 1990.
It is expected that further written information regarding this item will be supplied after this
meeting to the Council with the Additional Information packet.
ACTION TO BE CONSIDERED ON THIS ITEM: To make a determination whether a
teen club use in a neighborhood business district is similar to other uses which are
permitted in that district.
SPECIAL USE PERMITIPRAISE FELLOWSHIP CHURCH
D. Special Use Permit, Praise Fellowship Church/Pastor Arden Loven, to Allow a Church
in an LI (Light Industrial) District Located at 3103A Sibley Memorial Highway (Lot 1,
Block 1, Eagan 13 Industrial Park) --An application has been submitted by Praise
Fellowship Church requesting a special use permit to allow the church to locate
temporarily at 3103A Sibley Memorial Highway. The special use permit would be for two
years. The church has been meeting Wednesday evenings and Sundays at the Yankee
Square Inn; however, their membership has outgrown that location. The church has
expressed the desire to purchase land in Eagan and build their permanent church here
sometime in the future. For further information on this item, plea a refer to t
heport
prepared by the Planning Division which is enclosed on pages through
ACTION TO BE CONSIDERED ON THIS ITEM: To approve or deny a special use
permit for Praise Fellowship Church to allow the church to locate temporarily at 3103A
Sibley Memorial Highway. If approved, the special use permit would expire two years
from the date of approval.
k5l
6
POSSIBLE GUIDELINES FOR COUNCIL/TASK FORCE REPRESENTATIVES
1. Use of visual separations during visual flight rules
conditions to center traffic near 105 degrees.
2. Improved coordination between dual controllers to permit
visual separation in visual flight rules conditions.
3. 95-110 degree fan under instrument flight rules conditions
(standard procedures to keep traffic north of a track at least
5 degrees north of the extended runway centerline).
4. If unable to institute visual separation because of volume,
reduce amount of traffic coming into corridor to levels which
compatible land use area can accommodate.
5. Extend 3 mile (off runway) turn point upon departure to 5
miles (off runway).
6. Extend 4 mile (off runway) turn point for approaches to 6
miles (off runway).
7. Buyouts for the McKee Addition and for similarly impacted
Mendota Heights homes if favored by residents and/or purchase
assurance for the same neighborhoods.
8. Purchase assurance for Highview, Avalon, other Ldn65
neighborhoods and turn neighborhoods, as well as the L10
neighborhoods in Mendota Heights.
9. Non -voluntary night time restrictions.
10. Reinstate restricted flight areas at Tower for Eagan.
Institute restricted flight areas for Mendota Heights.
11. Insulation for Ldn65 homes and for L10 homes not already
covered by the model noise ordinance.
12. Possible alternative suggestion re: middle corridor flight
i patterns. Alternate use of the corridor middle on a patterned
basis, providing periods of relief to each city. If nothing
else works.
LONG TERM GOALS:
1. Heavy development of feeder airports -- pour resources into
them.
2. New Noise Maps and yearly or bi-yearly updates.
3. Increase Eagan/Mendota Heights representation at MASAC to
reflect their current populations and degree of impact upon
their populations.
132
CITY OF EAGAN
SUBJECT: SPECIAL USE PERMIT
APPLICANT: PRAISE FELLOWSHIP CHURCH
PASTOR ARDEN LODEN
LOCATION: LOT 1, BLOCK 11 EAGAN 13 INDUSTRIAL PARR
EXISTING ZONING: I-1 (LIMITED INDUSTRIAL)
DATE OF PUBLIC HEARING: MARCH 20, 1990
DATE OF REPORT: MARCH 13, 1990
COMPILED BY: PLANNING DEPARTMENT
APPLICATION SUMMARY: An application has been submitted by Praise
Fellowship Church requesting a Special Use Permit to allow the
church to locate temporarily at 3103A Sibley Memorial Highway.
The church is proposing to occupy the 1,800 square feet at the
front of the building. Parking will be sufficient and has been
provided for by the existing on-site parking.
The church has approximately fifty members and meets Wednesday
evenings and Sundays at the Yankee Square Inn. The applicant is
seeking a two-year Special Use Permit. Their request for a
temporary location is due to the fact that their membership has
outgrown the confines of the Yankee Square Inn, and it will allow
them to plan their new church facility. The church has expressed
the desire to purchase land in Eagan and build their permanent
church here.
If approved, the Special Use Permit shall be subject to the
following condition:
1. The Special Use Permit shall expire and become void two years
from the date of approval.
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Agenda Information Memo
March 20, 1990 City Council Meeting
CONDITIONAL USE PERMIT(FEDERAL LAND COMPANY OUTDOOR STORAGE
E. Conditional Use Permit, Federal Land Company, to Allow an Automobile Rental
Facility in the Bicentennial Planned Development Located on Lot 1, Block 1, Bicentennial
1st Addition and Lot 1, Block 1, Bicentennial 2nd Addition South of Yankee Doodle Rd
and East of Federal Dr in the NE 1/4 of Sec 16--A public hearing was held by the
Advisory Planning Commission at their last regular meeting held on February 22, 1990, to
consider an application submitted by Federal Land Company for a conditional use permit
to allow outdoor storage on behalf of Agency Rent A Car at the rear or south side of the
Yankee Square Center. The APC is unanimously recommending denial of the conditional
use permit.
For additional information on this item, please refer to a staff report prepared by;he
Community Development Department which is enclosed on pages A/Irthrough
For the Council's information, enclosed on pages j#,4 through Z&— is a copy of the
APC minutes regarding this item.
ACTION TO BE CONSIDERED ON TRIS ITEM: To approve or deny a conditional use
permit to allow outside storage of vehicles in the Yankee Square Center by Agency Rent
A Car.
110
SUBJECT: CONDITIONAL USE PERMIT
APPLICANT: FEDERAL LAID COMPANY
LOCATION: YANKEE SQUARE BROPPING CENTER
(Lot 1, Block 1, Bicentennial 1St Addition)
EXISTING ZONING: CPD (COMMERCIA.L PLANNED DEnLOPXENT)
DATE OF PUBLIC EEARING: FEBRUARY 22, 3.990
DATE OF REPORT: FEBRUARY 12, 1990
COMPILED BY: COMMUNITY DEFELOPKENT DEPARTMENT
APPLICATION BUXX"Y: Federal Land Company in requesting a
Conditional Use Permit to allow outdoor storage on behalf of Agency
Rent-A-Car. The automobile rental office is located in the Yankee
Square Center and the storage of vehicles is proposed for the rear
or south side of the shopping center.
COMMENTS: The proposed office use is consistent with the existing
zoning; however a Conditional Use Permit is required to allow the
outdoor storage of rental vehicles. The proposed parking area for
the vehicles does not appear to conflict with any high demand
parking areas. However, signage that clearly defines the rental
car parking area should be provided. The applicant states that
there will be approximately three office employees and the number
of rental cars to be parked on-site will not exceed ten at any
time.
If approved, this permit shall be subject to the following:
1. Signage shall be provided delineating the rental car
parking from the shopping center parking.
2. All applicable Ordinances.
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Page 7 /EAGAN ADVISORY PLxMINKG': COMMISSION ,W1NUTES
February 22, 1990
7. All commercial areas shall be constructed with t e same
materials with all sides of the buildireg g
same material.
S. All trash/recycling ar'eas';"h�Y : contained within the
buildings. "
9. All applicable environ" t►1 `per: shall be obtained.
10. The development is subject to additional requirements as
identified by City staff during the platting phases of development
necessary to provide adequate public infrastructure facilities to
service the development.
11. Only two -three story 66 unit apartments will be allowed.
12. No gasoline pumps
shall:::* iillowed.
All voted in favor.
CONDITIOMLL OBE 4BRIXT/7EDI+ LMM CO""Y
BICZ"ZNyT L-•..B3CQ3:.:ADDITION
Chairman Graves convened•....•ttie ...-public hearing regarding a
conditional use permit to allow a1j::;nutom61�11e rental facility in the
Bicentennial Planned Development'.:.: IwAted on - Lot 1, Block 1,
Bicentennial First Addition and IA 1, *dock 2, Bicentennial Second
Addition, south of Yankee Doodle Road east of Federal Drive in
the northeast quarter of Section 16.
City Planner dim Sturm presented the application to the
Commission. He pointed out to the Comission that there were
currently 20 to 30 cars present at the sit"nd some For Sale signs.
Michael Colon (Federal !ZWA :fi ! ::described the Project and
the location.
Commissionmember Hoeft reported thatAhe applicants vere already
in violation of City Code. Commissioniber Markley had similar
concerns. Chairman Graves asked what recourse the City had concerning
the matter. CityAttorney licants for violation. Commissionmember Markleweplained that the y
a
could cite the applicants
Page 8/EAGAN ADVISORY PLANNI0":: COMMISSION 4dNUTES
February 22, 1990
asked how long the cars had' i}� _ _ '=' ncated at the center. Mr. Colon
stated the cars had been present for sixty days.
Hoeft moved, Staehli seconded, the notion to close the public
hearing and deny a conditipna•�•:.:.:e.•...pFmit to allow an automobile
rental facility in the Biite'i;::!wedvelopment located on
Lot 1, Block 1, Bicentennia'1 1�Srt" J4ition and Lot 1, Block 2,
Bicentennial Second addition, south:,:,of yaiWee Doodle Road and east of
Federal Drive in the northeast quarter ot5ection 16, as requested by
Federal Land Company because. t. ste wara.'present violations of City
Code. All voted in favor.
WILLNU8 ADDITION/INDEPERDZUT DCSOOL DIMTRICT SO. 196
Chairman Graves opened the public hearing regarding a
Comprehensive Guide Plan amendment, a rezoning from multiple to
Public Facility, and a preliminary plat of one lot and an outlot on
approximately 18.2 acres fot::4n:.elementary school located along the
east side of JohnnyCake Ri #tis,•.•.•zouth of Diffley Road in the
d'9� �:.
northwest quarter of Section 28.
City Planner Jim Sturm summned''''the applications for the
Commission. Eric Linner (Wold::::;i':associates) explained the project.
John Willmus (EHW) quest ioned::t-h-i:'4ize of the area to be rezoned.
Kathy Rushlin had concerns regarding the zoning of the north
property. City Planner Jim Sturm explained that the zoning on that
property would remain the same.
Commissionmember Trygg :Ad::.....0 ��o � : regarding the drainage.
Assistant City Engineer !tike Faertsch ;.explained the improvements.
Chairman Graves questioned the road.43hang# ::'Hr. Liner explained that
the change
was necessary to isprove:;:;the parking circulation.
Commissionmember Merkley asked iE:==:the thools were designed for
future conversion. Mr. Liner stated it ba$ not been a consideration
in the designs. Jerry Bertsch (ISD #196) explained the planning
considerations and future conversions.
Commissionmember Gorman asked Than :.tbe City would review the
zoning. Community Development Director: ale Runkle explained the
process. Commissionsember Trygg questioniW the location. Mr. Bertsch
explained the rationale. #* lferkley had questions
sch
regarding the water quality :::. C ty Engineer !tike abed the
explained the nater quality treatment....::$ric Linner described the
landscaping in response to Chairman Graves' questions. Mr. Sturm
pointed out there was adequate landscaping:
Iq7
Agenda Information Memo
March 20, 1990 City Council Meeting
PRELIMINARY PLAIGOPHER EAGAN IND PARK 3RD ADDITION
F. Preliminary Plat, Gopher Eagan Industrial Park 3rd Addition/Gopher Smelting Co.,
Inc., for Two Lots on 7.5 Acres of PD/LI (Planned Development/Light Industrial) Zoned
Property Located North of Yankee Doodle Rd, East of Hwy 149 in SE 1/4 of Sec 12--A
public hearing was held by the Advisory Planning Commission at their last regular meeting
held on February 22, 1990, to consider an application from Gopher Smelting Co., Inc., for
a preliminary plat for Gopher Eagan Industrial Park 3rd, Addition. The APC is
recommending approval of the preliminary plat.
For additional information on this item, please refer to a staff rep repared t
Community Development Department which is enclosed on pagesWtthrough
For the Council's information, enclosed on pages K4 through J&_7 is a copy of the
AAP minutes regarding this item. Also for the Council's information, enclosed on page
is a memo from the Director of Parks and Recreation regarding Advisory Park
nd ecreation Commission action on this item.
ACTION TO BE CONSIDERED ON THIS ITEM: To approve or deny a preliminary plat
entitled Gopher Eagan Industrial Park 3rd Addition.
lot
CITY OF RAGAN
SUBJECT: PRELIMINARY PLAT
GOPHER RAGAN INDUSTRIAL PARR 3RD ADDITION
APPLICANT: GOPHER SMELTING CO INC
LOCATION: OUTLOTS A & B, GOPHER RAGAN INDUSTRIAL
PARK 2ND ADDITION
EXISTING ZONING: PD - LI
(PLANNED DEVELOPMENT - LIMITED INDUSTRIAL)
DATE OF PUBLIC HEARING: FEBRUARY 20, 1990
DATE OF REPORT: FEBRUARY 12, 1990
COMPILED BY: COMMUNITY DEVELOPMENT DEPARTMENT
APPLICATION SUMMARY: An application has been submitted by Gopher
Smelting Company, Inc. requesting a Preliminary Plat for two lots
on 7.5 Limited Industrial -zoned acres.
EXISTING CONDITIONS: Currently, the site is platted as Outlots A
& B of Gopher Eagan Industrial Park 2nd Addition. The site abuts
Bur oak Hills 2nd Addition along the north and east property lines.
Highway 149 and Kutoff Court are located along the west property
line, and Minnesota Fence and Iron Works, Inc. is located directly
to the south. The lots gradually slope downward to the north and
east property lines. The proposed floor elevation of the building
is 887.0. The surrounding lots in Bur Oak 2nd Addition are
approximately 20 feet below the floor elevation as depicted in
cross section Exhibit A -A. There is a ravine located along the
eastern property line of Lot 1.
DEVELOPMENT PROPOSAL: Lots 1 and 2 are approximately 3.7 and 3.8
acres respectively. Jesko Corporation, a concrete contractor, has
a purchase agreement with Gopher Smelting Company to purchase
proposed Lot 2. Jesko is currently located in Edina, Minnesota and
intends to move their headquarters to Eagan. The proposed building
includes 30,000 square feet of warehouse and 8,600 square feet of
of€ice space. Both uses are permitted in a Limited Industrial
zoning district. Approximately 30 employees work at this site.
The site plan indicates 60 parking stalls. The Zoning Code
requires approximately 102; therefore, a Variance of 42 parking
stalls will be required.
The landscape plan indicates the existing stand of mature trees
located along Highway 149 and along the north property line of
both Lots 1 and 2. A conservation easement shall be entered into
to protect the existing trees. The trees and grade differential
provide an excellent buffer between the two conflicting uses. The
conservation easement would give the City the authority to restrict
any vegetation removal.
The proposed plan indicates a 40' access/egress easement from
Kutoff Court east to Lot 1 along the southern property line. This
borders Lot 1 of Gopher Eagan 2nd Addition. Minnesota Fence
Company is located on Lot 1. They currently have a purchase
agreement for Outlot C which abuts Lot 1 to the east. If the
purchase of Outlot C does not occur, outlot C will not have access
and shall, therefore, be in nonconformance with Section 13.20,
Subdivision 9. The closing of the property was scheduled for
February 9, 1990. Due to some survey work that was incomplete, the
closing did not take place. The second closing has not yet taken
place at the time of this staff report; however, it should be
completed by the time of the Planning Commission meeting.
1!1;"()
s
GRADING/DRAINAGE/EROSION CONTROL: The preliminary grading plan
proposes to grade the majority of Lot 2 and a minimal amount of Lot
1 along the southwest corner of this site. The maximum cut on the
site will be 6' and the maximum fill will be 61. The preliminary
grading plan proposes to protect a strip of wooded area along the
north property line of this site for a width of 50' - 801. Also,
a 40' wide area is proposed to be protected along the west side of
Lot 2. The wooded area to be preserved will provide a buffer to
the adjoining residential area to the north plus it will limit the
erosion from the development to the north.
Surface water drainage from Lots 1 and 2 is proposed to be conveyed
through a storm sewer system that will connect to the existing 36"
storm sewer along the east property line. The existing 36" storm
sewer on the east property line of this site has sufficient
capacity and depth to serve Lots 1 and 2. The proposed storm sewer
system will intercept all of the surface water from Lots 1 and 2
except for the northerly strip of woods. The wooded area will
drain overland to the north across the single-family lots in the
Burr Oak Hills 2nd Addition development and be picked up by the
existing storm sewer in Hillside Drive. The storm sewer will
drain to Pond GP -1 which is located in the Burr Oak Hills 2nd
Addition development. Pond GP -1 has an outlet via lift station and
force main to the west to Pond EP -2. Staff recommends that the
internal storm sewer on Lot 2 be extended to the southwest to
intercept the proposed catch basins and ditch located at State
Highway 149 and Kutoff Court intersection. The 5 -year flow to the
proposed storm sewer on Kutoff Court will be 5 cfs.
The 2' - 6' high retaining wall is proposed along the north side
of the building on Lot 2. The development will be required to
submit detailed plans and specs covering the construction of the
proposed retaining wall.
An erosion and sediment control plan was not submitted with this
application. The development will be responsible for installing
and maintaining erosion control measures in accordance with the
City's erosion/sediment manual standards.
WATER RESOURCES: Pond GP -1 (Burr Oaks Pond) is classified as a
Class II - Indirect Contact recreational waterbody. Burr Oak Pond
currently meets water quality criteria for a Class II waterbody.
The review of the water quality impacts the development would have
on Burr Oak Pond was not completed at the time of the preparation
of the report.
UTILITIES: Sanitary sewer of sufficient size, capacity and depth
has been stubbed to the north property line of this proposed
development from the Burr Oak Hills 2nd ,Addition. The preliminary
utility plan proposes to connect to this existing 8" sanitary sewer
and extend a line to the southeast to serve Lots 1 and 2. An
existing 18" trunk sanitary sewer is also available at the
southwest corner of this site, however, it does not have sufficient
depth to serve Lot 1.
A 24" trunk water main of sufficient pressure and capacity is
located along State Highway 149 to provide service to this
development. The preliminary utility plan proposes to connect to
the existing 24" water main and extend an 8" water main along the
south end of this site to serve Lots 1 and 2. Staff recommends
that a hydrant should be added to the central part of Lot 2 along
the west side of the parking lot to improve fire protection to the
proposed building on Lot 2.
STREETVACCESS/CIRCOTLA N: The preliminary site plan proposes to
obtain access to Lots 1 and 2 from the unimproved portion of Kutoff
Court. The developer will be required to contact MnDOT and obtain
their requirements for the upgrading of Kutoff Court up to the
intersection with State Highway 149. City Project 516 upgraded
Kutoff Court to a point approximately 50' south of the south
property line of this development. The remaining portion of the
upgrading of Kutoff Court was deleted from Project 516. Indications
are that MnDOT will require both a right turn and bypass lane be
added at State Highway 149 at the intersection. Also, it was
determined that the location of the intersection of Kutoff Court
and State Highway 149 would be best determined by waiting for
development of the parcels on Outlots A and B of the Gopher Eagan
Industrial Park 2nd Addition. The upgrading of Kutoff Court shall
be designed to a 36' face-to-face width with concrete curb and
gutter and storm sewer to collect the runoff.
The preliminary site plan proposes to provide access to Lot 1 by
constructing an access driveway along the south property line of
Lot 2 from Kutoff Court to Lot 1. City staff recommends that the
width of this driveway shall be a minimum of 301, and a concrete
valley gutter shall be constructed across Kutoff Court at the
intersection of the new driveways.
EASEMENTS/RIGHT-OF-WAY/gZEZITS: This development shall dedicate
all easements necessary for the internal sanitary sewer, water main
and storm sewer systems of sufficient width as required by
alignment and depth.
80' of right-of-way has been dedicated for Kutoff Court at the
present alignment. If the upgrading of Kutoff Court is required
to be located to the north, then additional right-of-way will need
to be dedicated.
A proposed ingress/egress easement will be required over the
proposed driveway along the south end of Lot 2.
This development shall be responsible for ensuring that all
regulatory agency permits (MPCA, MWCC, Department of Health, MnDOT,
etc.) are acquired prior to final plat approval.
FINANCIAL OBLIGATION - GOPHER EAGAN INDUSTRIAL PARR 3RD
BASED UPON THE STUDY OF THE FINANCIAL OBLIGATIONS COLLECTED IN THE
PAST AND THE USES PROPOSED FOR
THE PROPERTY THE FOLLOWING
CHARGES
ARE PROPOSED. THE CHARGES ARE
COMPUTED USING
THE CITY'S EXISTING
FEE SCHEDULE AND CONNECTIONS
PROPOSED TO BE
BADE TO THE
CITY'S
UTILITY SYSTEM BASED ON THE SUBKITTEED PLANS.
IMPROVEMENT PROD
USE RATE
QUANTITY
AMOUNT
WATER TRUNK 447
C/I 2450/A
4.75 A
$ 6888
WATER AVAILABILITY CHARGE 538
C/I 2285/A
7.5 A
-12
TOTAL
$24026
CONDITIONS:
These standard conditions of plat approval as adopted by Council
action on September 15, 1987 shall be complied with:
Al, B1, B2, B3, B4, Cl, C2, C4, C5, D1, El, F1, and G1.
1. The required conservation easement for the north property line
shall be properly conveyed and recorded simultaneously with
the final plat.
2. A variance of 42 parking stalls shall be approved with the
plat.
3. No outdoor storage shall be allowed.
4. No outdoor speakers shall be allowed.
5. The development is required to provide a 5 cfs storm sewer
outlet to the storm sewer system in Kutoff Court.
6. The development is required to submit detailed plans and for
the construction of the proposed retaining wall for staff
review and comment.
7. The development is required to limit nutrient loadings to Burr
Oak Pond to predevelopment levels.
STANDARD CONDITIONS OF PLAT APPROVAL
A. Assessments
1. This development shall accept its additional assessment
obligations as defined in the staff's report in
accordance with the final plat dimensions and the rates
in effect at the time of final plat approval.
B. Zasements and Rights-of-wal►
1. This development shall dedicate 10' drainage and utility
easements centered over all common lot lines and adjacent
to private property or public right-of-way.
2.
This development shall dedicate, provide, or financially
guarantee the acquisition costs of additional drainage,
ponding, and utility easements as required by the
alignment, depth, and storage capacity of all required
public utilities and streets located beyond the
boundaries of this plat or outside of dedicated public
right-of-way as necessary to service this development.
3.
This development shall dedicate all public right-of-way
and temporary slope easements for ultimate development
of adjacent roadways as required by the appropriate
jurisdictional agency.
4.
This development shall dedicate adequate drainage and
ponding easements to incorporate the required high water
elevation necessitated by City storm water storage volume
requirements.
C. Plans
and Specifications
1.
All public streets and utilities necessary to provide
service to this development shall be designed by a
registered professional engineer in accordance with City
codes and engineering standards and policies, and
approved by staff prior to final plat approval.
2.
A detailed grading, drainage, erosion, and sediment
control plan must be prepared in accordance with current
City standards and approved by staff prior to final plat
approval.
3.
This development shall insure that all temporary dead end
public streets shall have a cul-de-sac constructed in
accordance with City engineering standards.
/S�
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STANDARD CONDITIONS OF PLAT APPROVAL
PAGE TWO
4. A detailed landscape plan shall be submitted on the
proposed grading plan and approved by staff prior to the
final plat approval. The financial guarantee shall be
included in the Development Contract and not release
until one year after the date of installation.
5. All internal public and private streets shall be
constructed within the required right-of-way in
accordance with City design standards.
D. Public iscrovesents
1. If any public improvements are to be installed under a
City contract, the appropriate project must be approved
by Council action prior to final plat approval.
E. Permits
1. This development shall be responsible for the acquisition
of all regulatory agency permits in the time frame
required by the affected agency.
F. Parks Dedication
1. This development shall fulfill its parks dedication
requirements as recommended by the Advisory Parks and
Recreation Commission and approved by Council action.
G. Other
1. All standard platting and zoning conditions shall be
adhered to unless specifically granted a variance by
Council action.
Advisory Planning Comission City Council
Approved: August 25, 1987 September 15 1987
Revised:
PLATAPPR.CON
LTS #1
5/12/89
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Page 9/EAGAN ADVISORY PLANNING COMMISSION MINUTES
February 22, 1990
Trygg moved, Hoeft seconded, the motion to close the public
hearing and approve a Comprehensive Guide Plan amendment from a
Multiple designation to a Public Facility designation for an
elementary school on approximately 18.2 acres located along the east
side of Johnny Cake Ridge Road, south of Diffley Road in the
northwest quarter of Section 28, as requested by Independent School
District No. 196. All voted in favor.
Trygg moved, Gorman seconded, the motion to approve a rezoning
from R-4 (Multiple) to PF (Public Facility) of approximately 18.2
acres located along the east side of Johnny Cake Ridge Road, south of
Diffley Road in the northwest quarter of Section 28, as requested by
Independent School District No. 196. All voted in favor.
Trygg moved, Merkley seconded, the motion to approve a
preliminary plat of one lot and an outlot on approximately 18.2 acres
for an elementary school site located along the east side of Johnny
Cake Ridge Road, south of Diffley Road in the northwest quarter of
Section 28, as requested by Independent School District No. 196,
subject to the following conditions:
1. These standard conditions of plat approval as adopted by
Council action on September 15, 1987 shall be complied with: Al, B1,
B2, B3, B4, C1, C2, C4, C5, D1, E1, F1 and G1.
2. The development will be responsible for providing a storm
sewer outlet to the northerly adjacent property adequately sized to
accommodate approximately 13CFS of runoff.
All voted in favor.
GOPHER EAGAN INDUSTRIAL PARK 3RD ADDITION
GOPHER SMELTING CO., INC.
Chairman Graves convened the public hearing regarding a
preliminary plat for two lots on 7.5 acres of Planned
Development/Light Industrial zoned property located north of Yankee
Doodle Road, east of Highway 149 in the southeast quarter of Section
12.
City Planner Jim Sturm presented the application summary to the
Commission. He requested the addition of two conditions regarding
ingress and egress and no off-site parking.
Page 10/EAGAN ADVISORY PLANNING COMMISSION MINUTES
February 22, 1990
Wayne Tauer explained that Outlot C would be a part of the
Minnesota Fence Company's property. He requested elimination of
Outlot A. He described the project.
Chairman Graves questioned if there would be over-the-counter
sales. The applicant explained there would be over-the-counter sales
only for the front lot. City Planner Jim Sturm requested the addition
of a condition that the outiot must come back before the Advisory
Planning Commission before development. He also requested an
additional condition which would not allow over-the-counter sales for
Lot 2.
The applicant had objections to portions of the financial
obligation. Assistant City Engineer Mike Foertsch explained that the
matter should be discussed with the Council as it regarded an area
charge.
Chairman Graves and Commissionmember Merkley had concerns
regarding the parking code. Mr. Sturm suggested an additional
condition restricting roadway parking. There was further discussion
regarding the parking.
Gorman moved, Merkley seconded, the motion to close the public
hearing and approve a preliminary plat for two lots on 7.5 acres of
Planned Development/Light Industrial zoned property located north of
Yankee Doodle Road, east of Highway 149 in the southeast quarter of
Section 12, to be known as Gopher Eagan Industrial Park 3rd Addition
as requested by Gopher Smelting Co., Inc., subject to the following
conditions:
1. These standard conditions of plat approval as adopted by
council action on September 15, 1987 shall be complied with: Al, B1,
B2, B3, B4, C1, C2, C4, C5, D1, E1, F1, and G1.
2. The required conservation easement for the north property line
shall be properly conveyed and recorded simultaneously with the final
plat.
3. A variance of 42 parking stalls shall be approved with the
plat.
4. No outdoor storage shall be allowed.
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Page 11/EAGAN ADVISORY PLANNING COMMISSION MINUTES
February 22, 1990
5. No outdoor speakers shall be allowed.
6. The development is required to provide a 5 cfs storm sewer
outlet to the storm sewer system in Kutoff Court.
7. The development is required to submit detailed plans for the
construction of the proposed retaining wall for staff review and
comment.
8. The development is required to limit nutrient loadings to Burr
Oak Pond to predevelopment levels.
9. An easement for ingress and egress to the rear lot must be
obtained and approved by the City Attorney's office prior to final
plat approval.
10. No off-site parking shall be allowed on the lot.
11. No over-the-counter retail sales shall be allowed for Lot 2.
All voted in favor.
CONNOLLY ADDITION/WATER TREATMENT FACILITY
Chairman Graves convened the public hearing regarding a
Comprehensive Guide Plan amendment and a rezoning of .63 Townhouse
acres to a Public Facility district for a water treatment facility
located at the northeast intersection of Pilot Knob Road and Cliff
Road in the southwest quarter of Section 27, to be known as Connolly
Addition.
Trygg moved, Gorman seconded, the motion to close the public
hearing and approve a Comprehensive Guide Plan amendment of .63
Townhouse acres to a Public Facility district for a water treatment
facility. All voted in favor.
Trygg moved, Staehli seconded, the motion to approve a rezoning
of .63 Townhouse acres to a Public Facility district for a water
treatment facility located at the northeast intersection of Pilot
Knob. Road and Cliff Road in the southwest quarter of Section 27. All
voted in favor.
a
MEMORANDUM
TO: TOM HEDGES, CITY ADMINISTRATOR
,FROM: KEN VRAA, DIRECTOR OF PARKS AND RECREATION
DATE: MARCH 15, 1990
RE: GOPHER EAGAN INDUSTRIAL PARK 3RD ADDITION
The Advisory Parks and Recreation Commission reviewed the above referenced proposal
at its March 8, 1990 meeting and recommended the following:
1. That this proposal has fulfilled it's parks dedication requirement according
to the Gopher Eagan PD agreement.
2. That this proposal be subject to a cash trailway dedication.
KV:cm
cc: Ed Kirscht, Engineering Technician
Marilyn Wucherpfennig, Planning Aide
Marlene Zaleznicik, Planner I