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01/09/2018 - City Council SpecialSPECIAL CITY COUNCIL MEETING TUESDAY, JANUARY 9, 2018 5:30 P.M. EAGAN ROOM EAGAN MUNICIPAL CENTER AGENDA I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD III. JOINT MEETING WITH EAGAN’S LEGISLATIVE DELEGATION IV. COMPREHENSIVE GUIDE PLAN UPDATE V. BUSINESS SURVEY RESULTS VI. OTHER BUSINESS VII. ADJOURNMENT Special City Council Workshop January 9, 2018 III. JOINT MEETING WITH EAGAN’S LEGISLATIVE DELEGATION Action to be Considered: No formal action is needed. Eagan’s legislative delegation has been invited to the workshop to dialogue with the Council regarding legislative issues of importance during the 2018 session. Facts:  The City of Eagan is represented by: State Senators Jim Carlson, District 51, and Matt Klein, District 52; along with State Representatives Sandy Masin, District 51A; Laurie Halverson, District 51B; and Regina Barr, District 52B.  It is the tradition of the City Council to meet with the legislative delegation at the first Council workshop in January. Invitations were sent on November 17, 2017 to each member of the delegation inviting them to attend the January 9 workshop.  Senator Carlson and Representative Barr will not be in attendance at the workshop.  Typically, the legislators introduce themselves and state which committees they will be serving on this session.  This year, in keeping with the approach taken last year, the City does not have specific legislative priorities. Rather, representatives of the League of Minnesota Cities (LMC), Municipal Legislative Commission (MLC), and Metro Cities will be at the Council workshop to provide a brief update on the two or three primary issues each organization will be addressing in the coming legislative session on cities’ behalf. Specifically, each organization has been asked to speak to issues pertinent to Eagan.  The following representatives will be in attendance at the workshop: o LMC: Gary Carlson, Intergovernmental Relations Director o MLC: Katie Sen, Lobbyist , Messerli & Kramer o Metro Cities: Patricia Nauman, Executive Director Attachments: None Agenda Information Memo January 9, 2018, Special City Council Meeting IV. 2040 COMPREHENSIVE PLAN UPDATE - CITY OF EAGAN Direction to be considered: To discuss and provide input regarding the substantive changes proposed in the 2040 Update. To direct City staff to schedule the official Public Hearing for the 2040 Plan Update at the March 27, 2018 APC meeting. Facts: The focus of the 2040 Plan Update effort has been primarily on updating facts & figures as the majority of the 2030 plan is still relevant. However, the draft chapters reflect Eagan Forward, APC, public input to date and new Met Council requirements. In addition to the public outreach performed at Community Connections, Holz Farm Days, Big Rig Rally and Market Fest; outreach and engagement were also encouraged online via Social PinPoint. The APC reviewed the Land Use, Housing and Economic Development chapters on several occasions; they also took public comment at the end of their regular meeting on November 28, 2017. The draft Land Use, Housing and Economic Development chapters are included as attachments. Planning consultant, Mark Koegler, will guide the discussion to gather input on significant new/newly required content by highlighting specific areas of change for the Council to consider. The City is required to submit the Draft 2040 Plan to the Met Council, assorted State agencies and adjacent communities. The Met Council has six months to review and act on the plan. Three chapters within the Comprehensive Guide Plan - Natural Resources, Transportation and Community Infrastructure, incorporate significant individual plans as the basis for Plan guidance. The individual plans include the following: Stormwater Management Plan, Sewer Plan, Water Supply and Distribution Plan, Water Quality and Wetland Management Plan, Transportation Plan. All of these plans are being completely revised for the Comprehensive Guide Plan update. A new plan concept includes an integrated review of all of the utilities plans since they all address water in different stages of its existence. A summary of the highlights of each of these plans is attached, as well as an update on broadband communications as part of the City’s infrastructure. Attachments: (5) SPCC IV.-1 HKGi Memo – Discussion Guide SPCC IV.-2 Draft Land Use Chapter SPCC IV.-3 Draft Housing Chapter SPCC IV.-4 Draft Economic Development Chapter SPCC IV.-5 Public Works Chapter Highlights 123 North Third Street, Suite 100, Minneapolis, MN 55401 -1659 Ph (612) 338-0800 Fx (612) 338-6838 www.hkgi.com Direct (612) 252-7127 Email britt@hkgi.com Hoisington Koegler Group Inc.MEMORANDUM To: Mike Ridley, City of Eagan From: Mark Koegler Subject: 2040 Comprehensive Plan - Review Discussion Guide Date: January 5, 2018 HKGi has collaborated with Eagan staff in the preparation of the Land Use, Housing and Economic Development chapters of the 2040 Eagan Comprehensive Plan. After undergoing three reviews by the Advisory Planning Commission and two subsequent rounds of edits, version 3 of the draft is now ready for an initial review by the Eagan City Council. The purpose of this memo is to help facilitate the review of the plan by providing a discussion guide. For each of the chapters, changes from the 2030 plan to the new 2040 plan are noted. We will provide an overview at the Council’s upcoming workshop to further illustrate the changes that have occurred. Land Use Chapter The Land Use chapter of the 2040 Eagan Comprehensive Plan retains most of the material from the 2030 Comprehensive Plan. Generally, changes include updates of “facts and figures” that reflect changes that have taken place in the community over the past 10 years; updated Metropolitan Council projections applicable to Eagan; and responses to new opportunities and trends, some of which have their origins in the Eagan Forward initiative that preceded the Comprehensive Plan update. Changes to the Land Use Chapter of note include the following. Land Use (3rd paragraph, page 1) For this round of Comprehensive Plans, the Metropolitan Council has changed the classifications of many communities including Eagan. In 2030, Eagan was classified as a “Developing Community” which required an average minimum residential density standard of 3 units per acre. For the 2040 Plan, Eagan is now classified as a “Suburban” community which now has a new minimum residential density standard of 5 units per acre. Goals and Policies (pages 1 through 4) Goals and policies for land use in the 2030 plan were treated in a different manner than they were in other plan chapters; they were scattered throughout the chapter under a number of different topic headings. In order to bring consistency to the document, goals and policies have been moved to the front of the document and generally, they are consistent in content and tone with the statements found in the prior plan. Of particular note are the goals and policies associated with Mixed Use found Eagan Comprehensive Plan Memo – Review Discussion Guide Memo January 5, 2018 Page 2 on pages 3 and 4 and Placemaking/Sustainability/Resilience found on page 4. The goals and policies found in these two areas were modified and/or added due to community input gathered during the Eagan Forward process as well as the Metropolitan Council’s shift from an emphasis on sustainability to an emphasis on resilience. Growth and Redevelopment (pages 4 through 6) Despite being almost fully developed, the City of Eagan is anticipated to grow in population, households and employment. The growth will occur through a combination of development of remaining vacant parcels, redevelopment and infill development. The population, household and employment forecasts which serve as a basis for the 2040 Plan update are shown as follows: 2010 Actual 2014 (Est.) 2020 2030 2040 Population 64,206 66,810 67,400 69,800 72,300 Households 25,249 26,252 27,400 28,700 30,000 Employment 49,526 54,082 59,500 64,700 69,800 Key Planning Trends (pages 6 through 12) Three planning trends, Sustainability, Active Living and Connectivity were identified and discussed in the 2030 plan. For the 2040 plan, these items and more are addressed under the headings: Reinvestment; Sustainability and Resilience; Active and Healthy Living; and Connectivity and Placemaking. Of the changes in this section, the most noteworthy one is the addition of Reinvestment as a key planning trend for Eagan (pages 6 to 8). This section outlines Eagan’s position of now being virtually fully developed and accordingly, needing to pay more attention to challenges that need to involve reinvestment by the private and public sectors over the next two decades. The sidebar on page 8 identifies some of the anticipated challenges. This section includes a series of suggested reinvestment strategies. Placemaking is also introduced as a planning trend impacting the community. The sidebar on page 12 identifies types of placemaking and this section also includes key placemaking strategies. Special Area Plans (pages 23 through 25) Special Area Plans for key parts of the community were prominent components of the Land Use chapter of the 2030 Comprehensive Plan. Of the seven areas discussed in the 2030 Plan, five have been carried over to the 2040 Plan. Carriage Hills and North Lexington Commons are not shown in the 2040 Plan due to changes in the areas that occurred since adoption of the 2030 Plan. Lebanon Hills has been carried over from the past plan, virtually unchanged. Accordingly, the remaining four special areas are discussed in the 2040 Plan in detail. Eagan Comprehensive Plan Memo – Review Discussion Guide Memo January 5, 2018 Page 3 Northeast Special Areas Plan (pages 25 through 29) The Northeast Special Area is now the home of the Minnesota Vikings. Not surprisingly, the Vikings development substantially changed the thinking for this special area. The 2040 Plan recognizes the Vikings development and it includes a closer focus on the remaining area, south of Lone Oak Road and north of Highway 55. A concept plan for this area as well as key ideas and guiding principles are included in this section. Central Commons Area (pages 29 through 36) Discussion of the Central Commons Area in the 2040 Plan recognizes changes that have taken place over the past decade such as the recent opening of the Central Park Commons retail area and it carries over the illustrative examples of possible future redevelopment scenarios for the Town Centre area. It adds a new illustrative concept plan for the Promenade Shopping Center (page 34) that keeps some existing retail elements but adds a mixed-use component in lieu of other retail uses. The concept was prepared largely in response to the interest in expanding living area choices in Eagan to include added opportunities for walkable, mixed-use neighborhoods. The plan makes it clear that the concept is only an illustrative idea and not a specific redevelopment plan being put forward by the City. Cedar Grove Commons (pages 36 to 44) The narrative on the Cedar Grove Commons has been updated to highlight the substantial changes that have occurred in this area over the past decade. It also specifically highlights transit improvements. Cliff Road Commons (pages 45 to 49) The Cliff Road Commons section includes an updated concept development plan (page 47) that again has the potential to provide a higher density, more walkable neighborhood area in Eagan. A new Cliff Road transit station along the Cedar Avenue Transitway/Red Line BRT is proposed. This section also includes applicable guiding principles and a recommendation to consider the guiding principles established in the 2017 Cedar Avenue Transitway Station Area Plan at the time of private development or public investment. Enhanced Transit (pages 50 to 51) This is a new section in the 2040 Plan that summarizes and references the recent Cedar Avenue Transitway/METRO Red Line Implementation Plan. Resource Protection (pages 44 to 45) Eagan Comprehensive Plan Memo – Review Discussion Guide Memo January 5, 2018 Page 4 As was the case at the time the 2030 Plan was prepared, comprehensive plans are required to have a section addressing solar access protection. The 2040 Plan includes two specific requirements of the Metropolitan Council. The chart on page 52 provides information on Gross and Rooftop Solar Resource Calculations and the map on page 53 shows Gross Solar Potential. Housing Chapter The Housing chapter of the 2040 Eagan Comprehensive Plan expands upon the housing elements of the 2030 Comprehensive Plan to meet new Metropolitan Council standards. Generally, changes include updates of existing housing conditions that reflect changes that have taken place in the community over the past 10 years; updated Metropolitan Council projections applicable to Eagan; and the addition of housing implementation that is directly tied to housing needs identified in the chapter. Changes to the Housing Chapter of note include the following: Goals and Policies (pages 1 through 3) Some of the language of the goals and policies has been updated and modernized to reflect the realities of planning in Eagan today. These include recognition of the importance of affordability, as well as the role of residential uses within overall redevelopment opportunities. Policies remain mostly the same, with the addition of rental licensing and point-of-sale inspections under maintenance (policy 12), and the removal of a policy under redevelopment, as it was better suited for the Land Use chapter. History (pages 3 and 4) Changes reflect updates in data available since 2007. Some take-aways of note include: » Eagan’s transition from a developing community to a developed community also coincided with the Great Recession 2008-2012, which had a further impact on housing built » Since 2010, new construction of housing has been up, with the following types of projects:  Redevelopment of old golf courses into residential areas  Various market rate apartment buildings and senior housing  Infill single family detached housing Existing Conditions (pages 5 through 11) Data have been updated throughout this section. » Age of housing subsection added, highlighting that a majority of housing stock in Eagan was built prior to 1990; the 30-year threshold is when major maintenance projects become more of an issue for owners Eagan Comprehensive Plan Memo – Review Discussion Guide Memo January 5, 2018 Page 5 » Senior developments have been increasing in recent years. Between 2014-2018, the City is set to double the number of senior units » Housing Value section consolidated, showing value of owner-occupied units in a map (Metropolitan Council requirement) and changes in monthly rent by unit type. Housing Need (pages 12 through 21) This section includes the most significant changes and additions to the Housing Chapter. Projections were updated to reflect the City’s projections shown throughout the rest of the 2040 Comprehensive Plan. As shown in the Land Use chapter, the City’s land use is on-track to develop the number of housing units needed to meet household projections for 2040. The identified Housing Needs remained the same from the 2030 Plan, however, specific details of the Need for Affordability was expanded significantly in order to meet new Met Council requirements. » Added Affordability Existing Condition Indicators of Number of Affordable Units, Number of Housing Cost Burdened Households, and Number of Publicly Subsidized Units » Added Section exploring Allocation of Affordable Housing Need, a new Met Council requirement where cities have to show they are allocating enough acres of high-density residential uses so that affordable housing is a possibility. » After public input and discussion with the Planning Commission, wording within this section was adapted to emphasize that affordability, especially providing housing that’s affordable to people who work in Eagan, is a priority of the City. Implementation (pages 21 through 25) This section is entirely new, and a requirement of the Metropolitan Council. It is likely that this section will be moved to the Implementation Chapter (10), once that chapter is developed. The section is split into two subsections, Strategies by Housing Need, and Housing Tools. The Strategies are meant to provide guidance for future steps to meet the identified housing needs. The Tools are listed to show specific programs that currently exist, as well as well-known methods the City could use to address housing needs. The Table is also intended to show when certain programs would be appropriate to use, and what affordability level (very low-, low-, or moderate-income households), if any, those programs address. Economic Development Chapter The Economic Development chapter of the 2040 Eagan Comprehensive Plan carries over a number of goals and policies from the 2030 Comprehensive Plan, and the overall layout of the chapter remained the same during the current update to the plan document. However, the Economic Development chapter for 2040 did include a number of changes, as outlined below. Introduction (4th and 5th paragraphs, page 1) Eagan Comprehensive Plan Memo – Review Discussion Guide Memo January 5, 2018 Page 6 The introductory paragraphs of the chapter emphasize that Eagan is nearly fully built-out and emphasize the focus of the community on reinvestment and redevelopment. It highlights projects such as the Cedar Grove Redevelopment Area as examples of how the City and the private sector have already completed successful redevelopment efforts over the last few years. The introductory paragraphs emphasize that the City has adopted a Business Assistance Policy that provides a policy framework for how and when the City may financially participate in economic development. Existing Conditions and Trends (pages 2 through 5) Data and information have been updated throughout this section.  The section highlights a number of recent developments and trends in development in Eagan and the surrounding areas.  A breakdown of employment by industry is now provided, on page 4  A breakdown of the population (age 25 +) by educational attainment is now provided, on page 5 Issues and Needs (2nd paragraph, page 6) The Issues and Needs section emphasizes the ways that the City has become more active in facilitating infill redevelopment. Goals and Policies (pages 8 through 12) This section contains a handful of key changes and additions, including the following:  In the “Diverse Tax Base” section, the chapter now includes a Policy that mentions the use of metrics to identify parcels or areas of the community that are more suitable for redevelopment over the near term.  A new Policy in the “Diverse Tax Base” section notes that the City will “discourage the removal of commercial and industrial lands from the tax rolls unless it is in the public interest”.  A new Policy in the “Diverse Tax Base” section notes that “the City will support initiatives that may include developing small business incubators and entrepreneurial support spaces such as co-working and meeting spaces, and providing strong cellular coverage and high speed fiber for local businesses and remote workers”.  A new Policy in the “Diverse Tax Base” section notes that “the City will develop, or encourage the development of, secure and resilient broadband networks which provide world-class Internet speeds, leading edge connectivity (wired and wireless), and affordable access for all Eagan residents and businesses”.  A new policy in the “Services and Quality of Life” section states that “the City will develop and regularly update a Broadband Plan to ensure its residents and businesses have world-class Eagan Comprehensive Plan Memo – Review Discussion Guide Memo January 5, 2018 Page 7 broadband access, and to specify the appropriate role of the City, if any, in fostering leading- edge broadband”.  A new policy in the “Services and Quality of Life” section states that “the City will leverage the findings of Eagan Forward and other community initiatives with regard to quality of life, where appropriate. It will continue to measure its progress against benchmark communities identified in the Eagan Forward report”. 2040 Comprehensive Plan 1 Land Use (Draft v3) As one of the major parts of the Comprehensive Plan, the Land Use Plan provides the framework for how every parcel in the community will be used in the future. The Land Use Plan seeks to reinforce desirable land use patterns, identify places where change is needed and guide the form and location of future growth. The Land Use Plan also provides direction for the City’s Zoning and Subdivision Regulations. The City of Eagan has evolved from a developing community to a developed community. To date (2017), approximately 98% of the land in Eagan has been developed. Therefore, significant changes in development patterns are not anticipated in the 2040 Land Use Plan. However, changes will continue to occur in response to new trends and as older uses redevelop to new uses and as infill development occurs. The Metropolitan Council’s 2040 Regional Development Framework identifies communities according to their regional planning area designation. The Metropolitan Council has designated Eagan as a “suburban” community. Suburban communities experienced continued growth and expansion during the 1980s and early 1990s, and typically have automobile-oriented development patterns at significantly lower densities than in previous eras. Suburban communities are expected to plan for forecasted population and household growth at average densities of at least 5 units per acre for new development and redevelopment. In addition, Suburban communities are expected to target opportunities for more intensive development near regional transit investments at densities and in a manner articulated in the Metropolitan Council’s 2040 Transportation Policy Plan. Goals and Policies Goals and policies contained in this chapter address major land use types. Related goals and policies appear in other chapters such as Housing and Economic Development. Goals 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 2 1. Continue to maintain a land use pattern that reflects a variety of land uses including residential neighborhoods of varying densities and housing types; retail commercial and office areas; and industrial and service employment areas. 2. Emphasize high quality development that reinforces Eagan’s strong community identity and its reputation as a highly desirable place to live, work and play. 3. Encourage a mix of land uses that help to maintain a strong tax base in the community. 4. Encourage green technology and sustainable development. 5. Respect the natural environment while encouraging infill development and redevelopment. 6. Continue participation in Tree City USA, Green Steps and complete street efforts. Policies Residential 1. Encourage infill residential development that preserves and enhances the vitality and character of existing neighborhoods. 2. Support the needs of the aging population by locating senior housing in areas convenient to shopping, recreational opportunities and support services. 3. Designate sufficient land for higher density housing to ensure that the City’s goals of providing a wide variety of housing options can be attained. 4. Improve pedestrian and bicycle connections between residential neighborhoods of all densities and community destinations including jobs, shopping, parks and civic facilities. 5. Establish appropriate transitions between new residential developments and existing neighborhoods through design elements including buffers and vegetative screening. 6. Encourage residential neighborhoods that support active living and aging in place. Commercial/Retail 1. Support reinvestment in existing commercial and retail areas. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 3 2. Provide commercial services that are connected to residential neighborhood areas via sidewalks and trails. 3. Encourage landscaping for commercial businesses to be compatible with existing and planned landscaping improvements along roadways. 4. Preserve office land designations for long term development opportunities 5. Transition existing commercial areas to be more transit supportive. 6. Monitor the health of existing commercial centers by evaluating lease rates, occupancy rates and the physical condition of buildings. 7. Encourage retrofitting to add and improve street, bike and pedestrian connections in traditional auto-oriented retail centers. 8. Integrate housing into underperforming, redeveloping and new commercial and retail areas. Mixed Use 1. Ensure that zoning requirements support mixed-use in designated areas. 2. Encourage consistent design standards that serve as a framework for both public and private improvements addressing streets, lighting, landscaping, building materials and building placement. 3. Encourage commercial uses in mixed-use areas that provide goods and services at a community or neighborhood scale. 4. Encourage new mixed-use developments to feature a central place or element that helps give the area a sense of identity. 5. Where practical, encourage multi-story buildings with office space or residential housing over commercial retail spaces (vertical mixed-use). 6. Encourage the creative design of infrastructure (storm water management areas) to integrate such infrastructure as an amenity in public spaces. 7. Encourage higher density housing in mixed-use areas to help meet housing needs. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 4 8. Encourage the conversion of single use retail uses and centers into mixed-use areas by strategically introducing residential development, civic uses and offices. 9. Establish street connectivity and block size targets that support walkability. Industrial 1. Provide opportunities for new industrial development and expanded employment opportunities through the development of existing underutilized industrial sites. 2. Encourage expansion of employment opportunities with “head of household” incomes. 3. Ensure that high employment areas have good access to mass transit serving both the local and regional work force. 4. Accommodate diverse forms of office and flexible commercial/light-industrial land uses in designated employment areas. Placemaking/Sustainability/Resilience 1. Establish and maintain a high quality public spaces. 2. Enhance major entrances to the community with landscaping and signage that identify Eagan. 3. Support public art as a means to help establish identity and to create vitality in public spaces. 4. Support a land use pattern that promotes and protects community gardens and urban agriculture areas to decrease the distance between households and retail food options. 5. Support compact development patterns that can provide a mix of jobs and housing that reduces the need for long commutes and supports alternative transportation options. 6. Investigate options for alternative renewable energy generation on City properties. 7. Encourage high performing (LEED) building methods and materials in existing and new construction. Growth and Redevelopment Over the past 50 years Eagan has grown from a semi-rural township to a near fully developed suburb. Today there is relatively little vacant land left in Eagan. Table 3.1 summarizes the breakdown of vacant and underutilized land by land use type. For 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 5 more information about existing land use, see page XX and Figure 2.X in Chapter Two Community Background and Trends. Table 3.1 - Vacant and Underutilized Land Survey-2017 Land Use Vacant Vacant Approved Underutilized Major Outdoor Storage RC 45 6 34 O/S 12 52 MO 157 137 47 BP 65 1 17 IND 64 37 181 Total C/I 343 181 150 181 LD 50 640 MD HD 10 Total Res 50 650 Mixed (Special Areas) 132 53 Total 393 313 853 181 Source: City of Eagan As shown in Table 3.1, the amount of vacant and underutilized land left in the City is a relatively small amount of the total land area of Eagan. Most of the underutilized residential land consists of large lots with existing single family uses. It is anticipated that many of these will remain “underutilized” for the foreseeable future as demand for this type of residential property is likely to remain strong for some time as many of these owners enjoy the “acreage lot” and have no desire to further subdivide. Further, the difficulty of aggregating multiple parcels from multiple owners to create a sufficiently sized area for redevelopment can be challenging. It is also important to note that some of the remaining vacant or underutilized parcels contain natural features such as significant trees, slopes, and wetlands that restrict development potential despite the fact that they are large enough to be subdivided. In some cases, these constraints are the reason the parcel did not develop earlier. As land becomes scarcer in Eagan these parcels may become more desirable for development, despite their physical constraints. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 6 Despite being almost fully developed, the City of Eagan is anticipated to grow in population, households and employment. The growth will occur through a combination of development of remaining vacant parcels, redevelopment and infill development. The population, household and employment forecasts which serve as a basis for this update are shown in Table 3.2 along with historical growth since 2010. These forecasts have been prepared by the Metropolitan Council and are the basis for Eagan’s land use growth over the next ten-year period of time. Table 3.2 – Population, Households and Employment Projections 2010 Actual 2014 (Est.) 2020 2030 2040 Population 64,206 66,810 67,400 69,800 72,300 Households 25,249 26,252 27,400 28,700 30,000 Employment 49,526 54,082 59,500 64,700 69,800 Source: Metropolitan Council Key Planning Trends Planning does not end once a city has developed. Redevelopment and other means of reinvestment to revitalize properties in ways that meet the needs of current and future residents and businesses. Refinements to the public and private realm help to improve what already exists and create a more desirable, complete community. Drawing from Eagan’s 2030 Comprehensive Plan supplemented by information learned during this comprehensive planning process, Eagan is expected to be impacted by five major trends over the next 10 to 20 years – Reinvestment; Sustainability and Resilience; Active and Healthy Living; Connectivity and Placemaking. Consideration of each of these influencing factors will be paramount in ensuring that the city not only has a land use pattern that fits with the times but also has housing, infrastructure and a transportation system that keeps Eagan competitive with like communities throughout the region. These trends are discussed as follows: Reinvestment Figure 3.1 illustrates a pattern that cities go through over time. How communities react to change and the challenges it presents largely defines the future viability and attractiveness of the City. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 7 Figure 3.1 Source; Hoisington Koegler Group Inc. Cities start in a formative stage. Eagan’s formative stage began around 1860 when Eagan Township had a population of 567. It took almost 100 years before the community saw its first major retail/commercial development, the Cedarvale Shopping Center, in 1964. The growth stage of the community began in earnest in the 1980s with the completion of the Cedar Avenue Bridge and an expanded freeway network including TH 77 and I 35E. From 1980 to the early 2000s, the community expanded at a rapid pace adding new housing, shopping centers, industrial businesses and corporate headquarters. Today, Eagan is 98% developed and the “new growth spigot” has all but been turned off. It has entered what could be called the refine or decline stage in the evolutionary pattern of a community. Does this stage imply that something is wrong or problematic in Eagan today? Definitely not. It does imply, however, that the City will need to be attentive to issues and situations that it hasn’t faced in the past. Facing those changing issues and situations Demographic Changes Will Impact Eagan • The increasing senior population will have dramatic effects on city services as increasing numbers of seniors rely on government and non- profits to provide transportation, emergency response services and general support. • Younger generations seek more walkable, technologically- connected, experience oriented environments. Communications with younger residents will need to adapt to rapidly increasing technologies. • Immigration and diversity will mean an increase in the number of languages spoken in Eagan and potentially different expectations of local government based on past experiences with different types of governments. Immigration will also influence housing choices with demand for housing to accommodate larger families and co- housing. Sources: American Planning Association; League of Minnesota Cities 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 8 will need to involve reinvestment; reinvestment over the long-term and certainly reinvestment between now and 2040. Key reinvestment strategies include: » Move away from development rules and regulations that are geared toward greenfield development to those that address the realities of redevelopment and infill projects and their unique constraints. » Initiate revitalization when disinvestment and deterioration has only begun rather than waiting until areas become vacant necessitating clearance and redevelopment. » Identify priority infill and redevelopment areas. » Expedite development reviews. » Ease parking requirements in infill and redevelopment areas. » Offer density bonuses in infill and redevelopment locations. » Seek State and Regional partners. » Identify key anchor institutions. » Strengthen code enforcement. Sustainability and Resilience Ensuring a healthy environment, high quality of life and prosperous economy into future generations is important in Eagan. The community seeks to be sustainable, to meet the needs of the present without placing economic, social and environmental burdens on future generations. Additionally, Eagan wants to ensure that it is resilient. At the regional level, resiliency is defined as, “having the capacity to respond, adapt, and thrive under changing conditions.” Planning for community resiliency needs to build on past experiences, while also preparing the community to respond and adapt to future opportunities, changes and threats. Resiliency is having the ability to recover when an event occurs but it is also enhancing Eagan’s people, places and economy to prepare for and thrive after a change like a natural disaster occurs. It involves supporting healthy natural systems such as lakes and wetlands, managing and reinforcing elements of the built environment such as utility infrastructure, mobility and buildings and strengthening the economic and social fabric of the community. Key sustainability and resilience strategies include: » Help residents, employers and business owners practice sustainability. Challenges to a Fully Developed Eagan • Regional competition for quality of life • Competing retail centers such as the Mall of America • Online sales and its impact on brick-and- mortar stores • Underutilized commercial spaces • Congestion and lack of multi-modal transportation choices • Autonomous vehicles • Attracting the next generation of a highly skilled and educated workforce • Inadequate infrastructure beyond City control – State and Federal Highways, transit systems, broadband and fiber availability, etc. • Meeting the housing and lifestyle needs of the Millennial and Senior populations Eagan will need to remain flexible and open to new ideas to meet these challenges 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 9 » Develop a more locally focused and sustainable land use and transportation pattern which lessens reliance on commuting on regional highways and promotes local live-work-shop-play opportunities. » Support appropriate separation between development and ecologically sensitive areas, including water bodies and wetlands. » Support development and construction methods that minimize site disturbance. » Reduce energy consumption through a more compact development pattern and enhanced access to close to home jobs and services. » Consider, where possible, minimum and maximum parking requirements to better reflect parking needs and reduce as much as possible the amount of impervious surfaces. » Encourage development to reduce the amount of impervious surface through multi-story buildings, using structured parking, making shared parking agreements, and using pervious materials. » Promote the use of green building and development techniques for new construction and remodeling, including energy star, Leadership in Energy and Environmental Design (LEED), Green Communities, and alternative heating/cooling methods. » Support the protection of open spaces and important natural features through long-term conservation easements, buffers and acquisitions. » Encourage the use of stormwater management techniques which have a low impact on the environment while providing an attractive community amenity. » Encourage strategic investments in disaster prevention measures, including climate-resilient green infrastructure and redundancy. » As part of disaster and emergency management planning, include contingencies for spare capacity and flexibility to help address climate hazards occurring simultaneously or in quick succession. » Work to mitigate the urban heat island effect through site planning, including landscaping and the strategic use of green space. » Encourage renewable energy generation and storage technologies that provide resilience to climate shocks. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 10 » Work toward becoming a more complete community where residents can easily access goods and services by foot or bicycle to improve urban climate resilience. Active and Healthy Living The technological advances of the past century have been both beneficial and harmful. Today’s more sedentary lifestyle has become the focus of increasing concern about the connection between a person’s level of physical activity and their health. The distance from home to work, the lack of a feeling of safety for pedestrians and bicyclists, and time spent commuting in cars all contribute to how often people are active. Communities are seeking ways to make it safe and convenient for people to integrate physical activity into their daily routines. Creating an inviting environment for integrating physical activity is more than simply adding trails. It involves ensuring community destinations, such as retail areas, schools and parks are within comfortable walking or biking distance. It also involves creating a safe, desirable experience, such as through trails separated from automobile traffic, aesthetically pleasing landscaping, and adequate lighting. In thinking about making changes in support of active and healthy living, it is important to remember that everyone, regardless of age, gender, language, ethnicity, economic status or ability should have safe, convenient and affordable choices for physical activity. Supporting active living given individual preferences and abilities will require a range of approaches. While many of the changes are transportation and parks related, there are a number of land use initiatives that can support active and healthy living, including: » Creating compact, mixed-use neighborhoods that place parks, schools, civic buildings and retail within walking distance of people’s homes. » Encouraging new developments to provide “trip-end” facilities such as bike lockers and showers. » Create mixed-use developments with accessible transit. » Supporting neighborhoods becoming more pedestrian-friendly through additional trail connections, sidewalks, improving street intersections, snow removal for walks and trails, and landscape treatments such as benches and shade trees. » Encouraging additional walking and bicycling in existing commercial areas by adding trail connections, breaking up parking areas into separate areas with identifiable walkways, The amount of unstructured play in a child’s day is 4-7 minutes per day on average, while time spent in front of an electronic screen is more than 7 hours per day. Rideout, Victoria et al. (2010). “Generation M: Media in the Lives of 8-18 Year-Olds” 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 11 adding bicycle storage, and enhancing streetscape through trees, benches, and pedestrian scale lighting. » Create social gathering places to meet pedestrian needs. » Support developments that create the potential for places where people can live and work without an automobile. » Prioritize investment in pedestrian facilities to complete a network of walkability and bikeability before other areas of the community are considered. » Design and build City facilities to encourage walking and biking, including bike racks and/or lockers, showers and changing space, and sidewalks/trails located based on pedestrian movement rather than necessarily hugging roads. Connectivity The desire for one’s community to feel and be connected remains strong. Connectivity occurs on many levels, from physical connections of trails and streets - to digital broadband connections - to social connections of knowing one’s neighbors and feeling a part of a larger community. While it can be difficult in today’s rapidly changing world to feel connected, creating a community where people feel and are connected is critical in maintaining a recognizably high quality of life. Some examples of the types of connections the community should strive to have and maintain include: » Ensuring sidewalks and trails connect important community places such as schools, parks, community facilities and shopping areas. Walking and biking provide more opportunities for social engagement. » Creating inviting places for people to gather or interact such as plazas and outdoor eating areas. » Enabling the maximum implementation of technological advancement through broadband and communication technologies. » Establish a sense of place and a method of easy navigation through the naming of trail segments. » Assist with movement within Eagan through a local bus circulator service. » Facilitate connections to the greater metropolitan area through enhanced transit connections to major destinations like downtown St. Paul. » Support activities that help foster strong neighborhoods. » Explore holding larger events to help to establish connections among the different neighborhoods. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 12 Placemaking Placemaking is both a process and tool by which communities design and manage elements of the public realm (streets, parks, neighborhoods, retail centers, etc.) to create places that are appealing, accessible, welcoming, vibrant and that support social interaction. Placemaking helps define the pattern and use of the built environment and the manner in which people access, connect with and move around in it. Placemaking can also build and enhance sense of place by creating spaces that encourage social interaction and support interesting activities. Eagan has unique characteristics that contribute to the city’s sense of place and distinct identity. Residents and visitors enjoy vibrant parks, extensive trails, unique retail establishments and the home of the Minnesota Vikings. Art installations in public places and numerous festivals contribute to Eagan’s cultural identity. Enhancing the unique identity or sense of place in Eagan can improve the quality of life for those who live, work, play and shop in the community. Creating a unique sense of place is an important component for maintaining Eagan’s competitive position in the region. Placemaking strategies may include: » Supporting a wider range of entertainment and eating establishments. » Supporting entrepreneurship and incubator services. » Creating more pedestrian and bicycle links to parks and green spaces. » Providing a range of activities for youth, families and seniors. » Promoting mixed-use developments in specific locations. » Capitalizing on regional nodes of activity. » Creating a streetscape strategy that identifies appropriate aesthetic improvements. » Promoting events and programs that recognize and celebrate social and cultural diversity. » Expanding upon the already successful community events. » Creating a public arts master plan. » Creating a placemaking plan. Land Use Categories The Land Use Plan seeks to achieve a balance that provides for the overall needs and desires of Eagan residents, employees and Types of Placemaking • Standard Placemaking – creating quality places that people want to live work, play and learn in. • Strategic Placemaking – targeted to achieve a particular goal – creating places that are attractive to talented workers so that they want to be there and live there. • Creative Placemaking – working to institutionalize arts, culture and creative thinking in all aspects of the built environment. • Tactical Urbanism – creating quality places through a process that uses a deliberate, phased approach to change. Often these are low cost, high exposure activities. Wyckoff, Mark. (1/14). Definition of Placemaking: Four Different Types. Planning and Zoning News 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 13 business owners. The plan uses a range of categories that address residential, commercial, industrial and public/institutional uses. The land use category information on the following pages provides a summary of the land use categories and some example photographs. Each of the category descriptions indicates general types of uses that are considered appropriate; land use compatibility; access considerations; and potential physical constraints. Low Density Residential Uses: This land use category provides areas primarily for single family detached housing units. However, some attached housing (two-family units, townhomes) may be appropriate provided they comply with density restrictions and other applicable zoning regulations. Density: The maximum gross density allowed within this land use category is 4 units per acre. Densities within this land use category are generally low, ranging from old farmsteads and large lot estates to smaller lot subdivisions often associated with older single family subdivisions. Lot sizes are generally consistent with R-1 zoning standards, however, smaller lot sizes exist in older single family neighborhoods and in some planned developments. The creation of new small lot subdivisions may also be appropriate in situations where: a) a maintenance organization or exterior maintenance provisions strategies are in place, b) the site contains unique physical characteristics that can be preserved through use of smaller lots and/or cluster design, and c) the development design is consistent with the surrounding neighborhood. Compatibility Considerations: Due to the low intensity of single family uses, buffering is usually required where it abuts other more intense uses, particularly industrial or commercial uses or busy roadways. However, this does not mean that strict physical separation of uses must always be maintained. Through attention to appropriate scale, aesthetic treatment, and mitigation of potential external nuisances such as noise and light, single family uses may be compatible within close proximity to more intense uses. In addition, there are portions of Eagan that are subject to levels of airport noise that make single family uses undesirable. In these areas new single family development should be discouraged Access Needs: Individual access to all lots is required in single family and duplex development. Due to the low intensity of these uses, access is generally most appropriate from local and 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 14 neighborhood collector roads. Direct driveway access off arterial roadways is discouraged. Physical Suitability: Single family development has few limitations beyond those imposed by the City’s existing regulations regarding wetland, shoreland impacts, tree preservation, and water quality. In areas of steep slopes or other significant natural features worthy of protection, it may be appropriate to utilize cluster design techniques to minimize disturbance of the natural site features. Cluster design would allow smaller lots in exchange for substantial preservation of the significant natural features within a subdivision. Medium Density Residential Uses: This land use category provides areas for medium density attached housing units, including two-family dwellings, townhomes, and condominiums. Under certain circumstances, small lot detached single family units may also be appropriate. Density: Allowable gross densities within this land use category range from 4 to 12 units per acre, including common areas. Small lot single family developments may be allowed in situations where: a) a maintenance organization or exterior maintenance provisions strategies are in place, b) the site contains unique physical characteristics that can be preserved through use of smaller lots and/or cluster design, and c) the development design is consistent with the surrounding neighborhood. Compatibility Considerations: Medium density residential uses are generally compatible with other residential uses (lower and higher density). Like single family uses, medium density residential may also be compatible with some commercial and light industrial uses, given appropriate scale, buffering and design treatment of the higher intensity uses. In some situations, medium density residential uses may serve as a buffer between lower and higher intensity uses. Access Needs: Access needs vary by unit type and size of development but are generally moderate. Locations with easy access to arterial and collector streets may be most appropriate for larger-scale townhome and condominium type developments. Two-family and small-scale townhome developments have access needs similar to single family units. Physical Suitability: Similar to single family. Appropriate unit types should be chosen to match the site conditions. Generally, attached units can be well integrated into sites with physical constraints. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 15 High Density Residential Uses: This land use category provides areas for high density attached housing units, including townhomes, condominiums, and apartments. Density: Allowable gross densities within this land use category include those greater than 12 units per acre, including common areas. Compatibility Considerations: With appropriate buffering, high density residential uses can be compatible with other lower density residential uses. High density residential is also generally compatible with more intense commercial and industrial uses, given appropriate scale, buffering and design treatment. In some situations, high density residential uses may serve as a buffer between lower density residential and higher intensity commercial and industrial uses. Access Needs: Access needs vary with the size of the development. Developments with a large number of units should have direct access to arterial and collector roadways. In addition, close proximity to transit service is desirable. Physical Suitability: High density developments may be particularly suited to properties with severe development limitations (e.g. steep slopes, trees, wetlands) because attached dwellings are well suited to clustering techniques. In addition, use of underground parking can minimize the size of the structure footprint and impervious surface area. Office/Service Uses: This land use category provides areas for offices and lower intensity service and retail businesses. Professional offices, medical clinics, day care centers, dry cleaners and banks are examples of uses allowed in this category. Compatibility Considerations: These uses are fairly low intensity and can be compatible in close proximity to residential uses, given appropriate design and buffering. They are generally compatible with other commercial, retail, and light industrial uses and can serve as a buffer between more intense commercial or industrial uses and lower intensity residential uses. Access Needs: Office and service access needs vary with the size and type of the establishment. In general, these uses benefit from direct access to busy arterial and collector roadways. However, smaller offices and limited service establishments can also thrive on smaller roadways. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 16 Physical suitability: Varies with scale of development. In general, large footprint or multi-tenant buildings are suited to flat, open sites. However, specialty office and service buildings (e.g. corporate headquarters, hotels) may utilize unique site specific designs that can be well integrated into sites with more rugged terrain or significant natural features. Retail Commercial Uses: It is intended that this land use category provides areas for a variety of retail related uses. Shopping centers, supermarkets, drugstores, department stores, convenience center/gas stations, restaurants, hotels, and other businesses offering goods and services are examples of uses allowed in this category. Compatibility Considerations: Varies with the type and scale of development. Neighborhood commercial development should be designed at a scale compatible with nearby residential uses. Sidewalks and trails should be provided to connect these smaller commercial developments to surrounding neighborhoods. Larger commercial developments oriented toward community-wide or regional markets require greater buffering where adjacent to lower intensity uses. Such developments should also include unifying design elements to achieve an overall cohesive appearance. Access Needs: Retail commercial uses tend to generate substantial amounts of customer traffic. Visibility and convenient access is also important. These uses should be located along arterial or collector roads. Larger developments and/or certain uses such as hotels, also benefit from close proximity to freeway access. Physical Suitability: Varies with the type and scale of development. Generally, commercial developments are most suitable on flat, open sites with few physical constraints (e.g. steep slopes, wetlands, trees) as building footprints tend to be larger and parking needs high. Mixed Use Uses: It is intended that this land use category provides for areas of mixed residential or mixed residential/commercial uses as defined in area-specific Special Area Plans. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 17 Compatibility Considerations: Varies with the type and scale of development. Mixed use development is intended to be relatively self-contained and respectful of, or compatible with, existing adjacent uses. Access Needs: The overarching purpose of mixed use development is an attractive cohesive design that caters to pedestrian activity and movement. Sidewalks and trails should be provided to connect commercial components to surrounding neighborhoods to encourage pedestrian and bicycle travel. Depending on the scale of the mixed use development, access to, and visibility from, collector and arterial roads is anticipated. In any case, pedestrian scale and convenient access to transit is desired. Physical Suitability: Varies with the type and scale of development but in general, mixed use development will utilize relatively flat open sites or sites that have previously been developed. Major Office Uses: This land use category provides areas to accommodate a mix of professional offices, research and development facilities, and limited high-tech manufacturing/processing services typically located within large corporate campus areas or along more highly visible interstates or major road arterials. Corporate office buildings, research and development facilities, educational/vocational institutions, hotels, and public open space/trails designed to accommodate daytime employment populations are examples of uses allowed in this category. Warehouse/storage uses can be appropriate when clearly accessory to an allowed primary use. Outdoor storage is prohibited. Compatibility Considerations: Major office development is usually done in a coordinated manner with unified design treatments that provide a high level of exterior material quality. These uses are generally compatible with light industrial, commercial, service and multi-family uses. Compatibility with lower density residential uses depends largely on the scale and amount of traffic generated to and from a particular area. Access Needs: Major Office uses generate a substantial amount of employee traffic. They should be located along arterial and collector roads. However, individual property access may be provided from local streets within an overall office park development. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 18 Physical Suitability: Many major office uses exist in large buildings which are most suitable to sites with few development constraints (e.g. steep slopes, wetlands, woodlands). However, specialty office and service buildings (e.g. corporate headquarters) may be encouraged to utilize unique site specific designs to both integrate and protect significant natural features. Business Park Uses: This land use category provides areas to accommodate a mix of professional offices, research and development facilities, and light industrial uses as well as some support services. Corporate office buildings, office-warehouse, office-showroom, research and development facilities, restaurants and hotels are examples of uses allowed in this category. Outdoor storage is prohibited. Compatibility Considerations: Business Park development is usually done in a coordinated manner with unified design treatments. These uses are generally compatible with light industrial, commercial, service and multi-family uses. Given the relatively high design finish, these uses can also be compatible with lower intensity residential uses (e.g. single family, two-family). However, their compatibility with residential uses depends largely on the amount of traffic generated, particularly truck traffic. Access Needs: Business Park uses generate a substantial amount of employee traffic as well as moderate truck traffic. They should be located along arterial and collector roads. However, individual property access may be provided from local streets within an overall business/office park development. Physical Suitability: Many office/business park uses exist in large buildings which are most suitable to sites with few development constraints (e.g. steep slopes, wetlands, woodlands). However, specialty office and service buildings (e.g. corporate headquarters) may utilize unique site specific designs that can be well integrated into the sites with more rugged terrain or significant natural features. Industrial Uses: This land use category provides areas for a variety of industrial uses. Manufacturing, warehousing, and goods movement/distribution are examples of uses allowed in this category. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 19 Compatibility Considerations: Due to the high intensity of industrial uses, buffering and other mitigation techniques may be required to make them compatible with lower intensity uses, particularly residential uses. Industrial uses are generally compatible with office, retail and service uses, given appropriate design treatment. With adequate buffering and attractive architectural treatment, light industrial uses with low levels of truck traffic can be compatible in close proximity to some residential uses. Access Needs: Industrial uses can generate substantial amounts of truck traffic and should be located along arterial and busy collector roads. Convenient access to the regional transportation system is also important to accommodate truck traffic and ensure minimal conflict of truck and local/residential traffic. Physical Suitability: Industrial uses generally occur within large footprint buildings and associated parking/storage lots that require large sites with few development constraints (e.g. steep slopes, wetland, and woodlands). Quasi-Public and Institutional Uses: This land use category provides areas for uses that may be either public or privately owned and operated, but are intended for general public use. Municipal facilities, fire stations, places of worship, schools, museums, cemeteries and utilities are examples of uses allowed in this category. Compatibility Considerations: Varies with type and size of development. Buffering may be required to make the more intense uses compatible with lower intensity residential uses. In general, quasi-public and institutional uses are compatible with most other uses throughout the City. Access Needs: Varies with type and size of development and should be evaluated on a case specific basis. Because some of these uses can generate a substantial amount of traffic, they should be located with easy access to arterial and collector roads. However, some uses (e.g. elementary school) may be compatible within a low density residential neighborhood and accessed by local roads. Physical Suitability: Varies with type and size of development. The physical requirements of these uses vary greatly. Some require large buildings. Some don’t contain any permanent structures at all. Structures related to these uses may have unique designs that can be tailored to the constraints of any given site. Dealing with physical site constraints becomes primarily an issue of development cost rather than feasibility. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 20 Parks, Open Space, and Recreation Uses: This land use category provides areas for public and quasi- public parks, open space, and recreational facilities. Parks, trails, open space and natural areas, athletic complexes, ice arenas, and golf courses are examples of desired uses in this category. Compatibility Considerations: Generally parks, open space and recreational facilities are compatible with all other uses. However, some larger parks, in particular athletic fields, can generate substantial amounts of traffic, lights and noise that can make them incompatible with residential uses, especially low density uses. Access Needs: Varies with type of park and should be evaluated on a case specific basis. Physical Suitability: Varies with type of park. Private Recreation Uses: This land use category provides areas for recreational facilities which are privately owned. Golf courses and shooting ranges are examples of uses in this category. Compatibility Considerations: Most private recreational facilities are compatible with all other uses. However, consideration needs to be given to traffic, lights and noise in locating them adjacent to low density residential uses. Access Needs: Varies with type of private recreation facility and should be evaluated on a case specific basis. Physical Suitability: Varies with type of private recreation facility. Land Use Plans – 2030 and 2040 The 2030 Land Use Plan is shown on Figure 3.2. Figure 3.3 illustrates the desired future land use pattern for the City of Eagan by 2040. The 2040 Land Use Plan does not reflect a significant shift from the existing land use pattern nor the 2030 Plan. Distribution of planned land use in 2040 by the 12 land use categories is shown in Table 3.3. Land use change and redevelopment is most likely to occur within five Special Areas (see the Special Area Plans for more detail). 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 21 Figure 3.2 – 2030 Future Land Use Plan 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 22 Figure 3.3 – 2040 Future Land Use Plan 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 23 Table 3.3 – 2040 Future Land Use Plan Land Use Category Acres % of Total Low Density 6369 29.7% Medium Density 988 4.6% High Density 415 1.9% Retail Commercial 606 2.8% Industrial 1897 8.8% Business Park 435 2.0% Major Office 864 4.0% Mixed Use 422 2.0% Office/Service 248 1.2% Quasi-Public 691 3.2% Park, Open Space 4138 19.3% Private Recreational 89 0.4% ROW/Water 4288 20.0% Total 21450 100.0% Special Area Plans The City has designated five areas as special areas (shown on Figures 3.3 and 3.4). These are areas where unique circumstances exist that can best be addressed in a cohesive manner that is specific to the area. Each special area plan has its own section; summarizing the reason it is a special area; an overview of existing land use; the community’s vision for the future; and guiding principles. The policy guidance varies in detail depending upon area conditions. Three represent “Commons” areas – Central Commons, Cedar Grove Commons and Cliff Road Commons. The Commons areas are envisioned as pedestrian friendly, mixed use areas which include existing or planned access to higher quality transit services. The two other areas also have unique conditions, but do not have the mixed use orientation. The Northeast plan is an office and employment area located north of Trunk Highway 55 and east of Trunk Highway 149. The Lebanon Hills plan includes goals for the long term transition of existing private residential properties located within the boundaries of Lebanon Hills Regional Park to future park use. The Special Area plans have been prepared as policy documents to be used when land use, site, building, zoning, or circulation changes are proposed. The plans represent the desired vision for the area. However, they are meant to be flexible to allow for creative private sector responses to meeting that vision. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 24 Figure 3.4 – Special Area Plan Locations 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 25 In some areas, achieving the community’s vision will involve the gradual phase out of existing uses. While in other areas, the emphasis is more on using the special area plans to shape the character of redevelopment rather than on changing specific uses. The special area plans are also intended to be used to shape public investment decisions such as road alignments, trails and public spaces. Change in the special areas is intended to occur over a long time horizon with both private and public sector investment. Thus, it is important that the special area plans are used to guide investment in a manner which does not prevent the community’s ultimate vision from becoming reality. Northeast Special Area Plan Background The Northeast Special Area is located in the extreme northeast corner of the City and was anchored for many years by Northwest Airlines HQ & Flight Training Center and the Cray Research HQ. The area is showing new promise as Ecolab acquired and expanded the Cray Campus, Prime Therapeutics is building a new HQ to consolidate metro operations, White House Custom Colour continues to expand their HQ and manufacturing operations. The Special Area is bounded on the north by I-494, on the east by the City of Inver Grove Heights corporate limits and State Highway 55 to the south. A significant portion of this area was identified in the 2030 Comprehensive Plan for redevelopment. Approximately 200 acres that contained the former Northwest Airlines HQ and Flight Training center had sat vacant for several years after Delta Airlines moved those operations to Atlanta. The Minnesota Vikings approached the City in the summer of 2015 with a potential mixed-use development scenario that would include Minnesota Vikings headquarters offices and practice facilities as well as medical/office uses, retail, hotel and multi- family residential. The scope of the proposed project triggered a mandatory environmental review and an Alternative Urban Area-wide Review (AUAR) was prepared. The City Council adopted the AUAR by resolution and approved the Comprehensive Guide Plan Amendment changing the land use from Major Office to Mixed- Use in June 2016. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 26 The Minnesota Vikings complex, identified as Area 3 on the map to the right, includes team offices, an indoor practice facility, outdoor practice fields and a stadium. The Viking Lakes Preliminary Planned Development (approved in October 2016) provides for up to 1.3 MSF of office/medical office, a 100,000 SF indoor practice facility, a 10,000 seat outdoor stadium, up to 500 hotel rooms - potentially including a conference center, ~160,000 SF of retail and ~1,000 multi-family residential units on the 200 acre site. The Vikings headquarters, practice facilities, outdoor stadium and two medical office buildings will be completed and online in 2018. As a result of the existing and planned development in and around the Minnesota Vikings facility, only a small portion of the original Northeast Special Area is being addressed as part of the 2040 Plan. That segment is located south of Lone Oak Road and North of Trunk Highway 55. It is a generally triangular shaped area currently containing scattered single-family homes, vacant land and some business uses. Existing Conditions Physical Constraints and Land Use Development will be influenced by several natural features including wetlands and mature vegetation. There is also a significant terrain/elevation change as one moves from north to south across the triangular study site. Transportation Bordered by I-494, Trunk Highways 55/149 and Lone Oak Road, the study area is provided good visibility but limited access. The City adopted the TH 55 Access Management Study in 1999 that depicts desired access and frontage road locations along the east segment of Trunk Highway 55. The plan depicts full access at the Highway 149 and Louis Lane intersections of Highway 55 and three-quarter access (which prohibits a left turn in) at a point between such intersections. The three-quarter access is however, expected to be eliminated in the long-term. Airport Implications The study area lies approximately three miles southeast of the Minneapolis/St. Paul International Airport directly in line with 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 27 Runways 12/30 and lies within Noise Zone IV of the noise contours established by the Metropolitan Council. Vision Plan The City envisions this area to serve as a commercial and employment area. Topography and access impact the redevelopment of the area south of Lone Oak Road into office/service uses. Figure 3.5 shows a concept plan to guide the future development of this area. The plan calls for a small retail/commercial development on the west end of the area and office/service development in the mid portion of the site. The placement of the buildings and the road network will need to respond to the topography and natural features as shown on the concept plan. A trail system is also shown meandering through the area connecting both sites internal to the study area as well as to adjacent trails. The future development will abut the existing Gateway Business Park on the east end of the area. Key ideas shown on the concept plan include the following: » Provides the opportunity to create a new area for small to mid- size businesses. » Reflects the existing and planned Gateway Business Park on the east side. » Provides a north/south access by extending Ames Crossing Road to the south to Highway 55. Road meanders through the area at a grade of 5% to 6%. » Creates an additional north/south access as an extension of Lone Oak Road, south to the Courthouse Lane frontage road. » Office/service uses throughout the site except for the west end which could include a retail node reflecting nearby existing retail uses. » Wetland complex on the south side to be developed as a stormwater amenity. Retain existing vegetation along the north side where a significant change in grade occurs. » Retain tree cover in other areas of significant topography. » Trail system meanders throughout the property. » Ability to combine some of the properties to create larger parcels – 2 acre site and 2.5 acre site could be combined to accommodate a larger 4.5 acre user. » Topography, while challenging, can actually be used to create a very interesting and attractive business area. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 28 Figure 3.5 Northeast Commons Concept Plan Guiding Principles The following guiding principles are intended provide added direction for the Northeast Area: 1. The City ultimately expects the focused study area to develop as business park, research and development and neighborhood business uses. Existing residential uses are considered transitional. The timing of the transition of such uses should be a function of private market forces. 2. The study area is currently zoned Agriculture and Limited Business. In the future, the City will support rezoning to Business Park, Research and Development and Neighborhood Business districts in areas of sufficient size to provide a cohesive development. The City will not support rezoning that would result in piecemeal; lot-by-lot redevelopment or leap-frog development that would result in isolation of existing residential uses. 3. The City will strive to balance the needs of new Business Park, Research and Development and Neighborhood Business development and existing residential properties through the development review process, including enforcement of specific zoning standards and performance guidelines. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 29 4. Individual lot access to Trunk Highway 55 and will be prohibited. 5. Individual lot access to Lone Oak Road will be discouraged to the extent possible. 6. A uniform design element(s) providing an identity will be promoted in the study area. 7. To the extent possible, new development shall respond and strive to retain the natural features of the area including wetlands and mature vegetation. 8. Development shall incorporate trails and small landscaped amenities to support additional activity during the workday. 9. New Neighborhood Business uses will utilize materials and design features compatible with the area and the City Code. 10. New Business Park and Research and Development uses will utilize materials and design features consistent with City Code standards. 11. New development within the study area shall incorporate sound attenuating construction techniques as suggested by the Metropolitan Council. 12. Support the incorporation of sustainable building and site design practices. 13. The City will encourage additional transit options in the area to accommodate both the employment center and newly created residential neighborhoods. Central Commons Special Area Plan Background Central Commons is an 862 acre area, located around the intersection of Pilot Knob Road/Yankee Doodle Road and Interstate 35-E. It has been identified as a special area because of the desire to have a community focal point, an integrated, mixed-use place that can serve as a destination for shopping, dining, living, working and recreating. The community has been focused on shaping development in the Central Commons area since 1995 due to its location and convenient transportation access. While some elements of the community’s vision for the area have been achieved, there is a need for more enhancements. This special area vision is intended to primarily guide long-term, private-sector driven actions. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 30 Existing Conditions Land Use Central Commons consists of mixed retail, professional office, commercial, medium and high density residential, and public uses. These uses meet shopping needs in Eagan and nearby communities, as well as provide an employment base. The Community Center, Central Park and the Eagan Transit Center located in the northwest quadrant draw people from all areas of the City and surrounding suburbs. While the Central Commons area is primarily developed, change is still anticipated to occur. Development and redevelopment that occurred in the last decade demonstrate the possibilities of market driven investment and reuse of properties within the Central Commons area. An example of this in the northwest quadrant is the transformation of the Eagan Athletic Club site into a restaurant site and the Commons on Marice senior housing facility. Another example of investment is the conversion of a surface park and ride lot by the Minnesota Valley Transit Authority (MVTA) at Yankee Doodle Road and Pilot Knob Road into a structured parking ramp with a small scale retail area. Yet another example is the conversion of the former Lockheed Martin facility into the Central Park Commons retail center. The conceptual plans presented within the Central Commons Plan are for illustrative purposes only. No land use change or uniqueness in density is established within this special area at this time. Therefore, the basic MD and HD density allowances are used on the base land use map. Changes in land use from what is presented on the base land use map are expected to require a Comprehensive Plan Amendment. Figure 3.6 depicts a series of recent and planned land use changes in the Central Area. Additional information on the possible future changes in the Promenade area and The Town Centre area are addressed later in this chapter. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 31 Figure 3.6 – Central Area Reinvestment, Adaptation and Future Vision 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 32 Transportation This special area is located at the intersection of I-35E, Pilot Knob Road and Yankee Doodle Road. The extensions (with bridges) across I-35E at Duckwood Drive and Northwoods Parkway constructed in 2008 and 2011 greatly improved access and reduced traffic congestion. The area’s roadway system also includes south-oriented freeway ramps, from northbound I-35E and to southbound I-35E. The Minnesota Valley Transit Authority (MVTA) 679 stall Park and Ride ramp is located at the intersection of Pilot Knob Road and Yankee Doodle Road. Airport Implications The Central Commons Area is impacted by aircraft operations at Minneapolis-St. Paul International Airport (MSP) because it is located only a few miles from the end of two runways. The area receives fairly frequent overhead flights from departing aircraft. While the area is not within any federally regulated noise contours, the City will need to encourage the use of appropriate noise reduction measures during construction, especially for sensitive uses such as schools, nursing homes, hospital and residences. Vision Plan The Central Commons area is envisioned to be an active, mixed use and walkable destination for people of all ages from within and outside of Eagan. It is a place with a mixture of uses, including residential, commercial, employment and park. It is a “place” that is recognizably different than its surroundings and feels different when entered. It is a place where all forms of transportation, including walking, cycling, automobiles, and transit, are integrated. The retail centers range from small scale, “main street” areas to large hubs with national retailers. Public spaces are integrated throughout to provide intimate places that make it desirable to stop and enjoy the area. Creating a mixed use, walkable destination will not occur in the same manner throughout the Central Commons area. Most of the investment will occur on infill on existing sites or as the result of reuse or redevelopment sites. A few small vacant parcels still remain in the area. Recognizing that the type of investment influences what will and can occur, this section highlights considerations separately for infill areas and redevelopment. Note that the sketches are only meant to be illustrations of what could occur for a few example locations. Specific development and redevelopment proposals should be evaluated on how well they achieve the community’s vision and conform to policies, rather than how the uses and layout proposed match these examples. It 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 33 is also important that private and public actions support the overall vision and policies and do not create barriers to the realization of these goals. Infill Areas Infill development can occur for a variety of reasons, such as portions of multi-phase projects that have not yet been built or the conversion of large surface parking lots. In any infill situation where a plan already exists, consideration should be given to whether the plan is achieving the community’s vision for the area and what changes are possible to create a better development. Developing existing surface parking lots is a good way to expand developed areas and create a more pedestrian friendly environment. Infill in parking lots is often possible because the surrounding neighborhoods have already been built and a market established for the area. Infill can also be a way to diversify uses in areas, such as adding housing or offices. Converting surface parking lots is often possible through shared parking arrangements, structured parking or in areas with an oversupply of parking. Infill can also be used to better link individual stores in the development. As shown in the sketch example, new mixed use areas can help link the existing anchor stores and restaurants, as well as provide for more uses which will bring people to the area. Figure 3.7 identifies a future land use concept for the Promenade Shopping Center. There are currently no plans for redevelop this property; the purpose of the concept is to examine the potential of the area to create more of an urban, mixed-use neighborhood with retail, housing and entertainment uses. Key ideas shown on the concept plan include the following: » Provides the opportunity to create a new urban village area. » Retains existing Byerly’s store on the west side. » Anchor use could be an activity/entertainment area with uses such as performing arts, clubs, music venues, theaters and fitness facilities, all under one roof. » Creates a pedestrian scaled street separating the development from the existing cluster of restaurants to the south. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 34 Figure 3.7 – Central Area Infill Concept Plan » On-street parking for convenience and in support of a more urban context. » Mixed use housing/retail in just south of the activity anchor with wrapped structured parking. Parking in these locations would also serve the new activity anchor and allow users to directly access the parking from the south helping to limit traffic from meandering throughout the area. » More mixed use housing and retail to the east, abutting Promenade Avenue. » Creation of a new public plaza and gathering area. » Medium density townhomes on the east side with a new park just to the north. » Sidewalks throughout the area to support attractive, safe and convenient pedestrian movements. Redevelopment Some of the change in the Central Commons area will likely occur through redevelopment. The amount of change will vary based on a number of factors, including the size of the redevelopment proposal, the transportation system, the proposed use, and the incorporation of structured parking to support more density. The 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 35 community should strive with each redevelopment proposal to move towards the ultimate vision for the area, while at the same time, it is important to be respectful of existing property owners. Figure 3.8 Figure 3.9 Figure 3.8 shows how a redevelopment plan could incorporate existing uses such as big box retail while still creating a more pedestrian friendly environment. Figure 3.9 shows how the same site could redevelop if the entire site is included. With the larger site area, housing is also included. Over time there are possibilities of existing commercial areas being redeveloped. Figures 3.8 and 3.9 show two possible redevelopment patterns of an existing commercial area. Figure 3.8 shows what could happen if some of the existing big box retail and pad sites remain, while Figure 3.9 shows what could happen if the entire area redeveloped. In both examples the redevelopment includes a mix of uses. However, when more of the site is included it provides a larger critical mass and stronger opportunity for housing. Figure 3.9 also incorporates a village green to provide a larger, public gathering space for residents of the area. Guiding Principles No matter the type of development occurring in the Central Commons Area, the following Guiding Principles shall be considered in future land use decisions: 1. Understand the context of any development or redevelopment within Eagan and the Central Area. 2. Support dense, mixed-use development with a range of retail, office, services, medium/high-density residential, employment and public space uses. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 36 3. Design the development to ensure cohesiveness with neighboring uses and enhance pedestrian connections. 4. Respect existing site conditions and natural features - design with natural systems in mind. 5. Capitalize on opportunities to create and enhance pedestrian connections. 6. Allow Planned Developments to be used when incorporating housing and mixed use into developments. 7. Require high-quality design of sites and buildings that creates a cohesive identity for the Central Commons Area and offers flexibility that can respond to change in uses over time. Strive for pedestrian-scale buildings that are two to four stories in height. Create identity through the design character of the edges, i.e. the streetscape, building placement and gateway signage. 8. Encourage the use of design guidelines and standards to create a cohesive look within developments while still allowing enough variety to encourage visual interest. 9. Strategically place buildings toward the street with parking behind to help create clearly defined streets and the public realm. 10. Develop places - public gathering spaces or smaller, linked amenity areas (public or privately owned). 11. Create an integrated transportation system that organizes pedestrian, bicycle, vehicular, and transit movements. Use streetscape enhancements to create an identifying character for the Central Area. 12. Utilize a shared or district parking approach to minimize the amount of spaces and size of parking lots. Where possible, use structured or underground parking. Break up large parking areas with landscaped drive aisles, islands and sidewalks. 13. Support the incorporation of sustainable building and site design practices. 14. Ensure appropriate noise reduction measures (45 dB interior noise level) are met during construction for areas that are impacted by airport noise contours, especially for sensitive uses such as schools, nursing homes, hospitals, and single- family residential. Cedar Grove Commons Special Area Background The Cedar Grove Special Area includes 257 acres from Highway 77 (Cedar Avenue) to Silver Bell Road, both north and south of 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 37 Highway 13. Its borders are defined by the boundary of the Cedar Grove Redevelopment Tax Increment Financing (TIF) District. The Special Area was originally created in 2002 after the Comprehensive Plan Update of 2000 and encompassed 500 acres of land around all four quadrants of Hwy 13 and Cedar Avenue. This area was scaled back to only include the portion within the TIF Redevelopment District. However, during this process, land use policy and direction was established to help guide development on surrounding vacant and inconsistently zoned properties as now shown on the City of Eagan Comprehensive Guide Plan Land Use Map. The core area within this Special Area was the former Cedarvale Mall Area. Cedarvale was once considered Eagan’s downtown business district. The area was centered around the Cedarvale Mall, initially constructed in 1965. Since that time, the commercial viability of the area had declined largely due to access restrictions resulting from the 1982 reconstruction of the Highway 77-Highway 13 interchange and the development of other commercial retail competition such as Town Centre, and with the completion of I-35E, Cliff Lake Center and Eagan Promenade. Recognizing that the private market had not been successful in repositioning or reinvesting in the area in the fifteen years following the construction of the new interchange and that the area was beginning to decline physically and economically, the City determined that the need was present for public participation to assist and encourage the redevelopment of the area. Former Cedarvale Area Prior to Redevelopment 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 38 Vision Plan The Eagan City Council initiated the Cedarvale Area Redevelopment Study in 1998. The study resulted in the Village Plaza Plan that helped lay the initial groundwork for later plan refinements for what is now recognized as the Cedar Grove Redevelopment Area. In October 2001, the Economic Development Authority (EDA) formally adopted the Cedar Grove Redevelopment Tax Increment Financing District, which was certified in 2003. In September of 2003, the Eagan EDA/City Council set a series of goals for the area and approved the Cedar Grove vision statement stating: “The City’s vision for the Cedar Grove Redevelopment is to once again make the area a strong, vibrant gateway to the City of Eagan by creating a viable mixed-use area that utilizes its highway visibility and accessibility, while maintaining compatible land use relationships with surrounding uses.” The goals of the redevelopment effort have remained the same throughout the redevelopment process: » Revitalize Cedar Grove Area as a Gateway/Landmark of the Community » Improve Traffic Access and Circulation To and Through the Area » Encourage a Mixture of Market-Supportable Land Uses Compatible with One Another and with the Surrounding Area LIGHT RAIL LINE WITH STATION, BUS TRANSFER AND PARK & RIDE F ACILITIES EXISTING BUSINESSES TO REMAIN NEW TEEN CENTER AND RESTAURANT EXISTING BUSINESSES TO REMAIN COMPLETED GREENWAY LINK, RECREA TIONAL FACILITIES, AND REORGANIZED BUFFERED P ARKING EXISTING NEIGHBORHOOD TO REMAIN MULTI-FAMILY RESIDENTIAL WITH PARKING BELOW VILLAGE PLAZA 2-ST ORY RETAIL/OFFICE BUILDINGS AND CENTRAL URB AN GREENW AY SURFACE PARKING OFFICE DEVELOPMENT JUNIOR BALL FIELDS AND OPEN SP ACE SHARED P ARKING DECK OFFICE-HOTEL COMPLEX PARK AMENITIES MIXED DENSITY NEIGHBORHOOD ORGANIZED AROUND PARKS & GREENW AY NEW COMMUNITY USE MODIFIED INTERSECTION RELOCATED AUTO SER VICE BUSINESSES IN RECONSTR UCTED MALL BUILDINGEXPANDED TESSERACT CAMPUS Village Plaza Plan (1999) 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 39 » Incorporate New Urban Development Expectations by Incorporating a Pedestrian Focus, Transit Opportunities, Mixed Residential and Commercial Uses, Uniform and Cohesive Design Elements, Structured Parking and Public Green Space. » Protect Long Term Vitality of Residential Areas Adjacent to Commercial Area and Consider the Needs of Existing Businesses in Redevelopment or Relocation Efforts Redevelopment Efforts Since the Cedar Grove Redevelopment Area was created, the City and its EDA invested significant public dollars to create a foundation for future development, including over $14 million of major road and utility improvements, over $30 million in acquisition and demolition of property and numerous environmental investigations, financial reviews and market studies. Initial projects were completed in the peripheral areas of the district that included the realignment of Silver Bell Road and Cedar Grove Parkway public improvement, Keystone Communities Senior Housing (now New Perspectives Senior Communities), Cedar Bluffs Business Park, River Ridge Condominiums, Nicols Ridge Townhomes and the Dakota County CDA’s Lincoln Place Youth Supportive Housing Center. The EDA’s focus was the core of the Special Area where the bulk of the property acquisition and assembly needed to take place. Voluntary property acquisitions began in 2002 but by 2007, changes in State Eminent Domain Law placed a time limit on the EDA’s ability to acquire property for redevelopment purposes. As a result the City Council authorized eminent domain actions to acquire the remaining properties. Initial conceptual plans for the core area included housing as the dominate land use, but by 2007, the bottom dropped out of the housing market. The recession and limited credit markets significantly affected development interest in the area between 2007 and 2011. While several variations of conceptual plans had been approved by the EDA since the creation of the Special Area, the general parameters for the redevelopment area had purposely remained flexible to accommodate changes in market demand. Therefore, there was not a single concept that would ultimately be used to determine final development outcome, but rather general expectations established in the redevelopment goals for the area. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 40 Core Area Development In the fall of 2011, the City and the Master Developer were approached by Paragon Outlet Centers to consider development of a regional outlet mall on 47 acres of the site. The initial Paragon concept used the entire 47 acres for the building and surface parking. While the unique race-track design of the interior walkways met the pedestrian and architectural goals of the redevelopment area, the EDA required that more land be made available to accommodate a mixture of additional uses that would maximize the development intensity of the site and further preserve the original goals of the redevelopment. On April 3, 2012, the Eagan EDA approved a Preliminary Conceptual Plan that incorporated a 1,550 space parking structure adjacent to the proposed outlet center that preserved approximately 9 acres for additional development. The parking structure provides for a portion of the outlet center’s parking needs as well as provides parking capacity for the future development along Cedar Grove Parkway and the two outlots flanking the parking structure. By 2013, The Eagan EDA had acquired all necessary property, completed relocations and demolitions and conducted environmental investigations for development to proceed. The 400,000 square foot Twin Cities Premium Outlets officially opened in August of 2014 and now anchors the redevelopment area. Additional development within the core area includes the Flats at Cedar Grove rental apartments, Phase II completion of the Nicols Ridge townhomes and the Cedar Grove Townhomes along the south side of Cedar Grove Parkway and Bridgeview Park. As of early 2017, Affinity at Eagan apartments and a Hilton Home 2 Suites hotel were under construction adjacent to the parking structure. In late 2017, an additional hotel along Cedar Grove Parkway was approved and a purchase agreement has been signed for an additional rental apartment immediately east of the parking structure. Twin Cities Premium Outlets Cedar Grove Townhomes 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 41 Transit Station The Cedar Grove Transit Station is a vital component to accomplish the transit and pedestrian goals of the Cedar Grove Special Area. The station opened in 2010 at the west end of the Special Area and operated originally as a park and ride lot and transfer station to local routes, along with limited-stop express routes to downtowns Minneapolis, St. Paul and the University of Minnesota. In 2013, the Cedar Avenue Metro Red Line Bus Rapid Transit (BRT) line became operational from Apple Valley to the Mall of America and included a stop at the Cedar Grove Transit Station. The station was expanded to the center median of Cedar Avenue in 2017. The improvement also included a pedestrian walkway connection to the original station and the redevelopment area. This configuration now allows Red Line BRT buses to more efficiently operate without leaving the Cedar Avenue right-of-way. The transit orientated design of the core redevelopment area was purposely focused on providing walkable access to the station from all developments through a series of connected sidewalks and trails. Higher density land uses were strongly encouraged to take advantage of the transit opportunities as well as the higher intensity retail of the outlet mall. Providing direct transit access to the high employment retail area for both workers and shoppers who may also want to access the outlet mall while also shopping at Mall of America has become an important benefit to the outlet center. Cedar Avenue Transitway Station Area Plan In 2017, the City of Eagan and the Dakota County Regional Rail Authority finalized the Cedar Avenue Transitway Station Area Plan for both Cedar Grove and a future station at Cliff Road and Cedar Avenue. The plan identifies potential gaps in connections to the station, provides potential solutions that will encourage additional ridership and more efficient and safer use of the transitway. The plan establishes a Vision and Guiding Principles intended to be compatible with and build on those already established for the Cedar Grove Transit Station and Center Median Pedestrian Walkway 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 42 area. The plan should be consulted and guiding principles considered to help direct changes in land use or improvements to the transportation, pedestrian and bicycle connections to the transit station and surrounding area. Environmental As part of the redevelopment efforts within the Cedar Grove Special Area, environmental investigation and study was required to assess impacts of both former uses and future development on local land uses and regional systems. Investigations/Contamination Cleanup The core redevelopment area contained several former auto repair related businesses, gas stations and other uses that generally have a higher likelihood of producing petroleum and soil vapor contamination. Original Phase I and II Environmental Site Assessments were completed in 2005 and 2006, respectively, for the core redevelopment area. The subsequent contaminants identified included ash and slag, industrial/commercial/household refuse, demolition and construction debris, and leaks/spills from the former auto repair related businesses. As the City’s EDA acquired and demolished a significant portion of the core redevelopment area, extensive environmental investigations and mitigation were performed on properties identified in Phase I reports with an indicated Recognized Environmental Concern (REC). Purchase agreements with developers required the EDA to deliver a clean site or take financial responsibility for required mitigation efforts identified in a Response Action Plan (RAP) specific to the development. A summary of environmental mitigation activity for each parcel identified with an REC is available for review. AUAR On November 7, 2002, the Eagan City Council, as the Responsible Unit of Government (RGU), adopted a Final AUAR along with the 2002 Mitigation Plan as a substitute form of environmental documentation for the development of the area. The AUAR included impact analysis related to traffic, surface and wastewater, wetlands, wildlife, noise and environmental hazards. An interim traffic analysis was conducted in 2005 to assess changes in traffic impacts due to differences in how various properties developed compared to the 2002 AUAR. In December of 2009, the City of Eagan updated the AUAR as required by MN Rules 4410.3610, Subpart 7(A), implementing a revised development scenario within the study area. As major 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 43 development plans were being initiated for the area in 2012, the City again updated the traffic mitigation portion of the plan. While there have been several development scenarios since the original AUAR adoption in 2002, the mix of uses has remained relatively the same with only varying degrees of shifting intensity that were analyzed with subsequent updates. The final development scenario is currently 96% developed or in in final development stages. As a result, in 2017, the City informed the Environmental Quality Board of its final development scenario and determined there was no longer a need for future updates. Transportation As identified in the Cedar Grove AUAR, significant roadway capacity improvements (and with subsequent updates in 2009 and 2012) were completed, at the following intersections: » TH 13 and Silver Bell Road » Silver Bell Road and Cedar Grove Parkway/ Nicols Road » Silver Bell Road and Blackhawk Road » Nicols Road and Cedar Grove Parkway » TH 77 West Ramps and Diffley Road » TH 77 East Ramps and Diffley Road » Diffley Road and Nicols Road With an update in 2012, and preparation of a separate Travel Demand Management Plan (SRF 2014), all roadways and intersections in the AUAR study area were determined to provide adequate levels of service for current and future development through 2030. Land Use Plan This Special Area plan embraces the vision and goal setting statements developed through the planning efforts conducted prior to its adoption. The Land Use Plan for the Special Area was purposely left flexible to accommodate a mixture of compatible land uses (Figure 3.X). In order to formalize the design standards and expectations of the area, the Cedar Grove Zoning District was created, adopted and applied to the core area. Eventually, most of the development that has occurred in the area used a Planned Development Zoning to accommodate variations from a strict application of the CGD code standards, while still maintaining the overall purpose and expectation of the district. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 44 The Special Area is nearly fully developed. Still to develop in the core area are a 2.7 acre parcel (Outlot B), a .8 acre parcel adjacent to the parking ramp, and a 1.3 acre parcel acquired by CAP Development as part of the Affinity at Eagan project. These properties should remain as Mixed Use to accommodate flexibility in scope and type of different land uses. North of Hwy 13, the Wingfoot Tire and property west of the former Tesseract School site were identified as having high potential for redevelopment. The City Council identified a Mixed- Employment designation as appropriate for this area prior to development of the adjacent Minnesota Autism Center’s campus. The Wingfoot site, along with the vacant 7.5 acre City of Eagan parcel still retain a high potential for redevelopment and the Mixed-Employment land use remains appropriate for the site. However, potential soil contamination, topography, and sensitive soil and shoreland restrictions need to be considered with any future development scenario. Figure 3.XX-Land Use Plan-Cedar Grove Commons Special Area 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 45 Cliff Road Commons Special Area Background Cliff Road Commons, located along Cliff Road between Highway 77 and Interstate 35-E, became a special area recognizing that two large properties adjacent to Cliff Road may redevelop over the long-term. One of the properties contains radio towers, while the other serves as a driver license testing facility for the State of Minnesota. While there are no current plans for these areas to change, the City of Eagan desires to be proactive in outlining the community’s vision for how redevelopment might occur. Cliff Road Commons encompasses a larger area than the two properties (approximately 450 total acres). Adjacent parcels were included in the special area recognizing their need in creating a cohesive development and the area was expanded to the west slightly to take advantage of the pending Cliff Road Transit Station along the Cedar Avenue Transitway/Red Line BRT. In addition, because transportation access is limited on Cliff Road, the development needs to extend to other, existing City streets to create a functional circulation pattern. Existing Conditions Land Use As shown on Figure 3.11, Cliff Road Commons Special Area is a mix of residential and non- residential uses. Along Cliff Road are retail commercial and office uses. There are also three residential areas with a mixture of low, medium and high density residential. The high density residential areas are currently limited to the Oak Woods senior housing campus and Cinnamon Ridge Apartments west of Cedar Avenue. Transportation System Cliff Road is a four-lane Dakota County Road. Within this special area, it connects to Cedar Avenue on the west and Interstate 35-E to the east. There is a proposed Bus Rapid Transit (BRT) station near Figure 3.11 – Cliff Road Commons Special Area Land Use Plan 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 46 the intersection of Cliff Road and Cedar Avenue. In addition, there is a park and ride lot on the northeast side of Interstate 35-E and Cliff Road. The Cliff Road/Blackhawk Road Station area is well-served by express and local bus routes. Local routes include Routes 438 and 440. Express bus routes include Routes 472,480 and 484, providing express bus service to downtown Minneapolis, downtown Saint Paul, and the University of Minnesota. Existing bus stops are concentrated along Nicols Road, Cliff Road, and Cliff Lake Road. The METRO Red Line will provide service to the future stations at Cliff Road and currently travels between the Mall of America and Apple Valley. Vision Plan The Cliff Road Commons Special Area is envisioned as a mixed use area with residential, retail, office and park uses. It is intended to support a nearby transit stop on Cedar Avenue and the park and ride lot adjacent to I-35E. The area is also intended to serve residents, employees and travelers in the southwestern portion of Eagan. There is a limited amount of change envisioned. In most areas, redevelopment is anticipated to a mix of transit supportive and market supportable land uses. However, the redevelopment of the two large parcels on the south side of Cliff Road could be a catalyst for change both in the area illustrated and in other portions of the special area. Figure 3.12 illustrates how the redevelopment of that area could create a mixed-use, walkable neighborhood. With regards to the transit study area, the Cedar Avenue Transitway Station Area Plan was prepared in 2017 to provide a guide for future policy decisions. The plan should be consulted and its guiding principles considered when private development and public investment in the area is pending. Additional information about the study may be found in the next section. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 47 Figure 3.12 – Cliff Road Commons Future Land Use Concept Note the sketch in Figure 3.12 is only an illustration of what could occur. Specific development proposals for this, or other parts of the special area should be evaluated on how well they achieve the community’s vision and policies, rather than how the layout proposed match this sketch. The concept illustrated is designed to support the nearby transit stop on Cedar Avenue and to create a new walkable neighborhood. The concept includes a core area of high density housing with a limited amount of commercial on first floor and free-standing commercial/office buildings along Cliff Road. Other areas of the site shown on the concept include townhomes. A future street connection is shown on the west side of the site improving access to Nichols Road. Key ideas shown on the concept plan include the following: » Provides the opportunity to create a new urban village area. » Future roadway connection parallel to Cliff Road between Nichols Road and Rahncliff Road provides convenient access. » Future potential development of the radio tower site – general areas for commercial, high density housing and medium density housing. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 48 » Footprint study for the eastern 2/3rds of the site provides more detail. » Commercial/retail/office along Cliff Road at the new north/south access. » Access road terminates at park with stormwater feature. » Trails meander throughout the neighborhood. » High density housing in the center and northeast portion of the site. » High density housing could have small elements of mixed use to help enliven the intersection adjacent to the commercial/retail/office. Another alternative would be to locate workout rooms and common space with more glass exposure on the north sides of the two buildings. » On-street parking for convenience and in support of a more urban context. » Townhomes in the southwest portion of the site abutting the single-family neighborhood to the south. Guiding Principles The following Guiding Principles shall be considered for any development proposal: 1. Design flexibility into redevelopment plans to allow for incremental improvements. 2. Create mixed use, pedestrian zones at the full access intersections with enhanced streetscape and pedestrian amenities that draw people into the commercial areas. 3. Develop public gathering spaces or smaller, linked amenity areas (public or privately owned). 4. Create a comfortable, walkable, pedestrian scale through the design of smaller block sizes and enhanced streetscape. 5. The scale and intensity of uses should decrease as development moves closer to adjacent single family neighborhoods. 6. Negotiate with Dakota County to allow for full access intersection at mixed use district. Shown approximately ¼ mile spacing from existing full intersections, typically spacing is ½ mile. 7. Maintain and organize right-in & right-out access locations to serve commercial and mixed use areas. 8. Require internal circulation for vehicular movement through parking lots and drive lanes within the commercial areas. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 49 9. Enhance vegetative buffers between single family neighborhoods and adjacent non-residential uses. 10. Utilize shared parking, both structured and surface, for the commercial uses. 11. Require quality design of sites and buildings that create a cohesive identity for the area. 12. Support the incorporation of sustainable building and site design practices. 13. Consider additional guiding principles established in the 2017 Cedar Avenue Transitway Station Area Plan. Lebanon Hills Special Area Plan Background The Lebanon Hills Special Area overlays a portion of Lebanon Hills Regional Park located south of Cliff Road between Galaxie Avenue and Dodd Road (along the City’s southern municipal boundary). More specifically, the Special Area encompasses seven (7) privately-owned single family residential properties, totaling 18.5 acres, which currently exist within the boundaries of the regional park. The community’s intent is for these properties to become a part of the regional park at some point in the future because having private owned residences within the park is contrary to public use. These properties have been designated as a special area to facilitate the transition to that vision. Existing Conditions Land Use The special area is comprised of five (5) residential properties occupied by single family homes and two (2) vacant lots located within the outer boundaries of the Lebanon Hills Regional Park. Three (3) of the properties are presently zoned A, Agricultural and four (4) are zoned R-1, Single Family Residential. All of the existing single family homes lie within a shoreland overlay district and are served by private wells and septic systems. While the four (4) R-1 zoned properties are considered conforming in terms of use and lot size (12,000 square feet or greater), the three (3) Agriculturally zoned properties have nonconforming lot areas by failing to meet the minimum five (5) acre lot size requirement. Transportation The Special Area properties are provided access via both private and City streets. Four (4) of the properties are accessed via Carriage Hill Drive (a private street with access to Pilot Knob 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 50 Road), while one (1) is accessed via 120th Street West, a private road. Vision In recognition of the surrounding park use, the community envisions these seven (7) properties as part of the Lebanon Hills Regional Park. However, the interim use of these properties as single family residential homes does not negatively impact that vision. The City seeks to allow the occupants of the residences to remain as conforming uses, while not allowing any future subdivision. Thus, to achieve the required land use consistency between the Land Use Plan and Zoning Map, the City has adopted policies to guide the transition of the existing residential use to a future park use. Guiding Principles The following Guiding Principles shall be considered for the Lebanon Hills Special Area: 1. Existing residential uses are considered transitional in nature and their continued existence shall be supported by the City on an interim basis, provided they do not pose environmental concerns (i.e., failing septic systems). 2. The City shall strongly support the conversion of single family uses which pose environmental concerns (i.e., failing septic systems) to Park use. 3. Subdivision of existing residential properties is not consistent with the long term objectives of the Comprehensive Plan and will be discouraged by the City. 4. When opportunities arise, the City shall support the conversion of the single family residential uses to park use, and further support the concurrent attachment of the land to the County Park. 5. When each residential use is acquired by Dakota County and converted to a park use, the property shall be rezoned to a P, Park designation. Enhanced Transit (Cedar Avenue Stations) In 2013, the Cedar Avenue Transitway (METRO Red Line) began high-frequency station to station bus rapid transit (BRT) service between the Mall of America in Bloomington and the Apple Valley Transit station along the Cedar Avenue Transitway. The implementation of the METRO Red Line was a result of planning efforts led by the Dakota County Regional Railroad Authority (DCRRA) and partners to serve the transit needs of the growing 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 51 southern communities in Dakota County including Eagan, Apple Valley and Lakeville. In 2015, Dakota County developed a Cedar Avenue Transitway / METRO Red Line Implementation Plan Update (IPU) to identify service and facility improvements that will improve transit opportunities within the corridor now and in the future. Included in the 2015 IPU is a recommendation that station area plans be developed for each existing and planned station to help local communities prepare for a more sustainable community that integrates transit into future growth and allows for more travel options for residents. Additionally, the Metropolitan Council Regional Transitway guideline requires station area planning for infill stations. The Cedar Avenue Transitway Station Area Plan was prepared in 2017 to provide a guide for future policy decisions, development, and public investments in the Red Line station areas located in the City of Eagan, including the existing Cedar Grove Station and the proposed Cliff Road Stations (Figure 3.12). The study identifies the near- and long-term public improvements in each of the station areas focused on improving transit ridership, enhancing the transit user experience, and promoting transit-oriented development opportunities. The enhanced transit service will help make the Cedar Grove Special Area even more viable and it will help support the longer-term evolution of the Cliff Road Special Area. Figure 3.12 – Transit Station Locations 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 52 Resource Protection Solar Access Protection Minnesota Statutes Section require that local governments in the Metropolitan Area include an element for protection and development of access to direct sunlight for solar energy systems in the Comprehensive Plan. The rationale for including a solar access protection element in the Comprehensive Plan is to assure the availability of direct sunlight to solar energy systems. According to the Metropolitan Council, “a major share of energy consumed in Minnesota is used for purposes that solar energy could well serve such as space heating and cooling, domestic hot water heating and low-temperature industrial processes. Collection of solar energy requires protection of a solar collector’s skyspace. Solar skyspace is the portion of the sky that must be free of intervening trees or structures for a collector to receive unobstructed sunlight.” According to the Minnesota Energy Agency, “simple flatplate collectors have the potential to supply one-half of Minnesota’s space heating, cooling, water heating and low-temperature industrial process heat requirements.” As shown in Figure XX most of Eagan does not have solar potential that exceeds 900,000 watt-hours per year. The areas that have some potential are those rooftops of Eagan’s existing light industrial and warehousing buildings. Table 1: Gross & Rooftop Solar Resource Calculations Community Gross Potential (Mwh/yr) Rooftop Potential (Mwh/yr) Gross Generation Potential (Meh/yr)2 Rooftop Generation Potential (Meh/yr)2 Eagan 51,596,417 4,837,504 5,159,641 483,750 Source: Metropolitan Council, 2017 The values represented in the map are reflected in Table 1. The gross solar potential and gross solar rooftop potential were calculated by the Metropolitan Council. These potentials are expressed in megawatt hours per year (Mwh/yr), and represent gross totals. In other words, these calculations do not demonstrate the amount of solar likely to develop in Eagan; instead the calculations estimate the total potential resource. The gross solar generation potential and the gross solar The fact that Eagan is nearly a fully developed community suggests that consideration of solar access will occur during redevelopment efforts and on an individual basis. Accordingly, the City will take the following measures to ensure protection of solar access where appropriate: 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) City of Eagan , Minnesota 53 » Within Planned Unit Developments, the City will consider varying setback requirements in residential zoning districts, as a means of protecting solar access. » The City will encourage the use of solar energy and other systems using renewable energy in new public buildings. 2040 Comprehensive Plan Chapter 5: Land Use (Draft v3) 54 Historic Preservation The Metropolitan Land Planning Act requires that local comprehensive plans include a section on historic preservation. Historic assets promote community pride and create a sense of community. As noted in Chapter Two (Community Background and Trends), there are few historic sites which remain in the community. Two of these historic facilities, the original town hall and the Holtz Farm, are open to the public and offer interpretive programs and events. As a developed community, it is unlikely that there are many intact archaeological resources within the community. However, as the community is committed to protecting its resources, it has and will continue to include assessments of historical and cultural resources as required for redevelopment projects. Aggregate Resources State legislation enacted in 1978 requires local comprehensive plans to address aggregate resources. The law requires that communities include the local government’s goals, intentions, and priorities concerning aggregate resources as part of their land use plan. It is unlikely that any of the aggregate resources in the community will be extracted because the community is generally developed. If any property or business owner seeks to extract aggregate resources, the City will explore with them the feasibility of extracting the resources and ensure all required state laws are followed in order to understand the potential impacts of mineral extraction. 2040 Comprehensive Plan 1 Housing (Draft v3) Housing is the most significant form of development in Eagan. More than one-third of Eagan’s 2040 land use plan is devoted to residential land uses. Well-built and well maintained housing in safe, attractive neighborhoods contribute to the high quality of life in Eagan. This chapter of the Comprehensive Plan analyzes the current housing stock, sets the community’s housing goals and policies, and outlines the community’s implementation program. Information for this chapter was compiled from a variety of sources, including the City of Eagan, Dakota County, Dakota County Community Development Agency and studies conducted by Maxfield Research Inc. In a perfect world, the Comprehensive Plan would not include a separate housing chapter. The housing needs of the community would be met through the combination of market forces, land use planning and other city land use controls. In reality, however, this approach may leave certain housing needs and community objectives unmet. The purposes of the Comprehensive Plan’s Housing Chapter are to identify housing needs and to provide a foundation for local decision-making to guide residential development and redevelopment efforts. Goals and Policies Eagan’s housing goals and policies can be traced back to previous Comprehensive Plans. The goals and policies have been modified to reflect the community’s evolution from a developing to a developed community. Goals 1. To maintain and enhance the quality of existing and future housing and preserve residential land values. 2. To ensure a community of strong, desirable and safe neighborhoods with well-maintained property. 3. To encourage (the provision of) appropriate recreational, educational, health and other supportive services for all residents. 2040 Comprehensive Plan Chapter 4: Housing (Draft v3)Housing (Draft v3) 2 4. To offer a well-balanced community with a diverse mix of housing types and values in the community to accommodate the housing needs of persons of all incomes in all stages of life and physical ability. 5. To recognize the need to provide opportunities for housing that is affordable to low and moderate income households throughout the community. 6. To ensure redevelopment with residential elements focuses on the livability of the redeveloped areas as well as the existing surrounding uses throughout the community. Policies Assets & Amenities 1. The City will encourage quality residential development through its requirements for landscaping; development of compatible architecture; preservation or provision of lakes/wetlands, parks, vegetation and other natural amenities. 2. The City will encourage the provision of private amenities within neighborhoods or subdivisions to be maintained by private property owners or associations. 3. The City will require new development to provide for infrastructure, such as sewer, water, city standard streets, diverse telecommunications, and sufficient roadway access. 4. The City will promote pedestrian and bicycle connections to link residential neighborhoods with shopping, work places, parks, schools, and other destinations throughout the community. 5. The City will encourage the preservation and maintenance of significant woodlands, vegetation, wetlands, and other natural features within all developments in order to maintain a high quality living environment. Type 6. The City will promote a diverse mix of housing types and values throughout the community to accommodate the housing needs of persons of all incomes in all stages of life and physical ability. 7. The City will support higher density residential development in areas adequately served by municipal services; in close proximity to parks, schools, shopping and transit; and where existing environmental conditions can be protected. 2040 Comprehensive Plan Chapter 4: Housing Draft (v3)Housing (Draft v3) City of Eaga n , Minnesota 3 8. The City will work cooperatively with other agencies, including Dakota County Community Development Agency, in developing and administering programs that meet housing needs of low and moderate income Eagan residents. 9. The City will offer a range of affordable housing throughout the community. Maintenance and Property Value 10. The City will continue to use housing maintenance standards to ensure both owner occupied and rental housing is maintained in a safe and sound condition that contributes to the continued value of the property and its surroundings. 11. The City will support the rehabilitation and upgrading of the existing housing stock. 12. The City will consider requiring rental licensing and point of sale inspections as the housing inventory ages. Redevelopment 13. The City will support redevelopment plans that utilize a comprehensive approach to development and prevent the isolation of small residual areas of homes among non- residential uses. 14. The City will support residential uses within redevelopment proposals that ensure compatibility with surrounding existing land uses through the provision of adequate services, buffering and amenities. History Prior to 1950 Eagan’s housing consisted of farm houses and rural dwellings. Beginning in the late 1950’s residential subdivisions began to appear in the western part of the City near Cedar Avenue and Highway 13. Housing development remained at a modest rate until the late 1970’s and early 1980’s when construction of Interstate 35E, Trunk Highway 77 and Interstate 494 greatly improved access between Eagan and the rest of the metropolitan area. Housing construction remained strong through the 1990’s and a wide variety of housing types were built. On average, about 700 new housing units were built each year between 1970 and 2000. With limited available land, Eagan’s residential growth began to slow after 2000 to an average of fewer than 170 units per year. 2040 Comprehensive Plan Chapter 4: Housing (Draft v3)Housing (Draft v3) 4 This slowing growth was amplified by the Great Recession of 2008-2012, where the City averaged about 40 new units per year. However, post-recession, new housing demand increased significantly and between 2010 and 2017, the City added 1,216 housing units. Despite the limited land supply, these totals were aided by redevelopment of two golf courses (200 acres) into residential uses. Additionally, the first market rate rental apartment and senior facility were completed since 1999 with the development of The Flats at Cedar Grove, CityVue Apartments and the Eagan Pointe Senior Living projects. More recently, an additional 712 multifamily units were either under construction or soon to be underway in 2017, with openings in 2018 through 2019. This new development includes market- rate apartments at Quarry Road and Phase II of CityVue, and senior facilities at Stonehaven, Applewood of Eagan, and Affinity at Eagan. An additional 200 units of single family housing are anticipated within the next two years as part of ongoing developments or recently approved projects. Table 1: 1970-2017 Housing Growth Decade New Households Percent Change 1970-1980 4,217 162% 1980-1990 10,603 155% 1990-2000 6,346 36% 2000-2010 1,537 6% 2010-2017 1,216 4% 2040 Comprehensive Plan Chapter 4: Housing Draft (v3)Housing (Draft v3) City of Eaga n , Minnesota 5 Existing Conditions Housing by Type There are approximately 28,000 housing units in Eagan in 2017. Detached, single family homes account for 52% of all homes in Eagan. Multi-family homes, including duplexes, four and eight- plexes, townhomes, apartments and condominiums, account for 48%. Figure 1 and Figure 2 illustrate the various housing types Eagan has in 2016. 52% 20% 2% 4% 19% 3% Single Family Detached Townhome - Owner Townhome - Rental Condominimum Apartment Senior Housing Figure 1: 2017 Housing Unit Types 2040 Comprehensive Plan Chapter 4: Housing (Draft v3)Housing (Draft v3) 6 Figure 2: 2016 Residential Housing Types 2040 Comprehensive Plan Chapter 4: Housing Draft (v3)Housing (Draft v3) City of Eaga n , Minnesota 7 Age of Housing Stock The age of Eagan’s housing stock reflects the community’s rapid growth during the period between 1985-1995. As shown in Figure 3, approximately 65% of all homes in Eagan were built prior to 1990. This large percentage of homes is now a concern as the 30- year mark is typically the age when homes are likely to need major renovations and repairs. However, the exact timing depends on the quality of the materials and workmanship so attention to monitoring neighborhood housing conditions should continue. Figure 3: Residential Year Built 2040 Comprehensive Plan Chapter 4: Housing (Draft v3)Housing (Draft v3) 8 Figure 4: 2017 Age of Housing 2040 Comprehensive Plan Chapter 4: Housing Draft (v3)Housing (Draft v3) City of Eaga n , Minnesota 9 Senior Housing There are approximately 800 senior citizen housing units in the City of Eagan. Some senior housing in Eagan has been built through the joint efforts of the City and the Dakota County Community Development Agency (CDA). The CDA has provided affordable rental units in the City of Eagan since 1992 with the original construction of the 65-unit Oakwoods of Eagan project. The CDA has since added 180 senior units within three additional buildings. Prior to 2014, 328 senior rental units were provided in three private developments with a continuum of care including independent living, assisted living and memory care units. In 2014, the Eagan Pointe Senior Living facility opened with an additional 153 units including 43 assisted living and 48 memory care units. In 2017, construction began on the Stonehaven Senior Living facility that will offer 137 units with varying levels of service. The Affinity at Eagan project will open in 2018 with 174 independent living rental units for active seniors ages 55+ and the Applewood senior project broke ground in late 2017 at the Quarry development that will offer 96 units of senior living in a cooperative ownership arrangement. Within the four years from 2014-2018, the City will have nearly doubled the amount of multifamily senior housing units. The breakdown of senior housing by type can be seen in Figure 5. 26% 25%20% 30%Independent Living Assisted Living Memory Care CDA Affordable Figure 5: Senior Housing by Type, 2017 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 10 Tenure In 2015, approximately 69.9% of Eagan’s homes were owner occupied and 30.1% were rental units. Most owner occupied housing consists of single family detached homes (74%). Twinhomes, townhomes and condominiums comprise the balance of the owner occupied housing. The majority (69.8%) of rental units in Eagan are in apartment style buildings. The rest are townhomes (18.0%) and single family homes (6.5%). The exact number of rental single family and townhomes is difficult to determine as ownership and rental demand changes. Housing Value According to Maxfield Research Inc. in 2013 the average resale price of existing single-family homes was $277,606 and $125,266 for townhomes/condominiums. The average price for new homes was higher at $529,107 for single-family homes and $299,018 for townhomes/condominiums. Figure 6 shows 2015 housing values for owner-occupied units. According to the Metropolitan Council, owner-occupied units which have a value of $238,500 or less are considered affordable units within the region. Approximately, 45% of owner-occupied units are under this threshold, with many of those units in the southwest quadrant of the city. According to the Dakota County Community Development Agency (CDA) 2016 Rental Market Survey, Eagan has an overall vacancy rate of 1.5%, which is less than the county-wide average of 2.2%. The average monthly rent for apartments continues to increase with the breakdown by apartment shown in Table 2. As seen, monthly rents have increased significantly for all unit-types over the last eight years; as household incomes have not increased at the same rate, the affordability of housing becomes a concern. Table 2: Average Rents by Unit Size 2008 & 2016 Unit Size Monthly Average 2008 Monthly Average 2016 % Change 2008-2016 Efficiency $633 $756 19.46% One Bedroom $799 $905 13.28% Two Bedroom $975 $1,190 22.01% Three Bedroom $1,349 $1,490 10.42% 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 11 Figure 6: Owner-Occupied Housing by Estimated Market Value 2017 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 12 Housing Need Projections Eagan will continue to grow, though now that Eagan is a developed community, rather than a developing community, that growth will look very different from previous decades. Eagan will continue to be a desirable place to live because of its jobs, transportation connections and proximity to both downtown Minneapolis and St. Paul. Table 3 shows the projected number of residents and households through the year 2040. Additional information about the projections can be found in the Growth and Redevelopment Section of the Land Use Chapter. The growth of over 3,000 households from 2016 to 2040 would be about 125 new households per year. Table 3: Population & Household Projections Census 2016 Estimates Projections 1970 1980 1990 2000 2010 2020 2030 2040 Population 10,398 20,700 47,409 63,557 64,206 68,223 67,400 69,800 72,300 Households 2,607 6,824 17,427 23,773 25,249 26,923 27,400 28,700 30,000 To accurately project for transportation and infrastructure planning purposes, the City has analyzed all properties to determine where future development may occur. Table 4 summarizes this analysis, showing the number of acres and units for each residential land use designation. Underutilized properties refer to those parcels with: » An existing use over one acre that appear could be further developed; » A redevelopment area; or » A non-conforming use. Vacant platted properties are defined as areas that have been platted or have received development approvals but have not had building permits approved yet or are still under construction. Table 4: Planned Residential Development Future Land Use Net Acres Expected Units Units/Acre Approved Plats Low Density Residential 57.8 128 2.2 Medium Density Residential 2.8 28 10.0 High Density Residential 17.1 712 41.6 Vacant/Underutilized Low Density Residential 180.0 363 2.0 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 13 Medium Density Residential - - - High Density Residential 10.0 120 12.0 Special Areas Central Area Commons 22.0 700 31.8 Cliff Road Commons 37.0 472 12.8 Cedar Grove Outlot B 2.7 150 55.6 Viking Lakes 48.5 975 20.1 Total 377.9 3,648 9.7 As shown in Table 4, over 60% of all new housing growth will come through redevelopment in the special areas. Redevelopment is targeted into the special areas because much of the low density residential areas cannot be guided for higher densities. This is because much of remaining land has characteristics that make it more difficult and expensive to develop (infill or odd shaped parcels, steep terrain, wetlands). In addition, many parcels contain single family homes on larger, agriculturally zoned lots which because of house placement can be hard to develop further. The 2040 Land Use Plan shows an overall development density of 9.7 units per acre for new residential growth. The Comprehensive Plan meets the Thrive MSP 2040 intent of a community with the designation “suburban” by having a density of at least 5 units per acre for areas of development or redevelopment, with targeted opportunities for more intensive development near regional transit investments. Housing Needs Life Cycle Housing One aspect of a balanced housing supply is the concept of “life cycle” housing. This objective seeks to provide housing options for all points in a person’s life. The spectrum of life cycle housing typically includes: » Rental housing for those without the interest or financial capacity for ownership. » Units for first-time home buyers. » “Move up” housing that allows growing families to move to a larger home. » Shared maintenance housing for those lacking the time or desire for upkeep. » Housing with supporting services for the disabled and/or elderly. 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 14 One method of monitoring the housing supply is conducting a housing needs assessment. This was done most recently by Maxfield Research in 2013. This assessment found that much of the new housing recently built was satisfying the demand for move-up housing, while first time home buyers were generally relying on existing homes. As noted in the Maxfield report, Eagan and Dakota County’s population is aging. According to the report, which projects population by age group through 2030, the City’s total population is expected to grow by approximately 4,500 people by 2030. Eagan’s 18 to 54 year old population is projected to decline during that time, while the 55 to 74 age group grows by over 6,500 people. Many of these empty nesters and retirees will choose to leave their detached single family homes because of its large size, exterior maintenance requirements (mowing, snow shoveling, etc.) and/or the desire for more convenient services (health care, meals, shopping etc.). A lower-maintenance lifestyle is also increasingly being sought by families with limited time, such as single parent families or households where both adults work. The demand for lower-maintenance housing can take many forms from apartments and condominiums with attached services to small lot single family homes with maintenance done through a home owners association. While Eagan provides a wide variety of housing choices, it will continue to be important for the City to monitor the housing supply and find appropriate City roles in filling gaps. Aging of the Population As noted previously, according to Maxfield Research, by 2030 the population over 55 years of age will grow significantly, and make up a higher percentage of the population (26.11%). While programs like the Dakota County Aging Initiatives are already underway, it is still unclear what the implications of aging will be for housing in Eagan. For example, how long will residents stay in their current home and will economic conditions encourage different family and non-family household structures, such as aging parents living with adult children or groups or unrelated seniors. The Maxfield Research and Dakota County Aging Initiative reports state additional housing options for this age group are needed. It is anticipated that there will be demand for additional affordable rental and market-rate for sale homes. In addition, demand for housing with services ranging from assisted living to nursing care are expected to continue. Discussions with people in this age 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 15 group indicate that the private market may need to create new products to meet their needs. This includes increased demand for one-floor living, whether in a detached home, townhome, or condominium/apartment. Monitoring and responding to these trends are important in retaining this age group in the community. Affordability Eagan is focused on providing a range of housing options, including ones that are affordable. Housing is considered affordable when it consumes no more than 30% of gross household income. Affordability is important because families that need to spend more than 30% of their income on housing costs may not have enough income left to afford basic needs such as food or clothing, or be able to deal with unanticipated expenses. One reason that affording home ownership has become an issue is that wages have not risen as quickly as housing costs. As costs of housing continue to increase and wages stagnate, or grow more slowly, it is anticipated that this issue will continue. American Community Survey data has also shown that the ratio of low wage jobs to low wage working residents was 1.75:1 in 2014. This means that there are people working in or near Eagan that could be living in the community if there was housing available. One reason that affording home ownership has become an issue is that wages have not risen as quickly as housing costs. For example, between 1990 and 2000, home prices in Dakota County rose 27% while incomes only rose 9%. Another factor is that development costs have been increasing. Between 1998 and 2004 the cost of land as a percentage of the total cost of a home rose from 25% to 46%. Affordable housing is not just for seniors living on fixed incomes. Housing costs are often challenging for young professionals just out of school, single parent families and service industry workers. The ability of workers to live near the workplace will also be of increasing importance in the future due to rising transportation costs and increased congestion. This is especially significant for service employment incomes. See the Economic Development Chapter for further discussion of jobs-housing balance. Through its regional planning efforts, the Metropolitan Council has prioritized housing affordability in the Thrive MSP 2040 Regional Policy. 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 16 The Metropolitan Council determined the allocation of affordable housing needed to meet the rising need of affordable housing across the Twin Cities metropolitan region. Housing is considered “affordable” when no more than 30% of household income goes to housing. As such, households with different income levels have different thresholds of “affordable,” as seen in Table 5. Table 5: Twin Cities Metropolitan Regional Household Income Levels, 2015 Household Size 30% AMI 50% AMI 80% AMI One-person $18,050 $30,050 $46,000 Two-person $20,600 $34,350 $52,600 Three-person $23,200 $38,650 $59,150 Four-person $25,750 $42,900 $65,700 Five-person $28,440 $46,350 $71,000 Six-person $32,580 $49,800 $76,250 Seven-person $36,730 $53,200 $81,500 Eight-person $40,890 $56,650 $86,750 Source: Metropolitan Council The Metropolitan Council has selected the four-person household thresholds as a general measurement for affordable housing needs at each income level. Housing Affordability As seen in Table 6, Eagan has a limited number of housing units that are considered affordable to very low-income households (those households with 30% or less of the Area Median Income [AMI]). There are a fair number of homes considered in the affordable range for low income households (31% to 50% AMI) and moderate income households (51% to 80% AMI). Table 6: Units affordable to Households of Various Incomes 2015 Units Affordable to HH w/ income at or below: Percentage of Total Housing Units (27,447 in 2015) 30% AMI 1,028 3.75% 31% to 50% AMI 5,321 19.39% 51% to 80% AMI 9,847 35.88% Source: Metropolitan Council, 2015 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 17 Housing Cost Burden The cost of housing is typically the most significant expense in a household’s budget. A residence is considered “affordable” when 30% or less of the household’s gross income is spent on housing. If a household spends more than 30% of their gross income on housing, it is experiencing a “Housing Cost Burden”. According to the Metropolitan Council, Eagan has the following breakdown of households experiencing housing cost burden, as seen in Table 7. Table 7: Households Experiencing Housing Cost Burden 2015 Households with income at or below: Housing Cost Burdened Households Percentage of Total Households (25,831 in 2015) 30% AMI 1,984 7.68% 31% to 50% AMI 1,305 5.05% 51% to 80% AMI 1,309 5.07% Source: Metropolitan Council, 2015 Publicly Subsidized Housing Sometimes the cost of housing is so out of reach for individuals or families that the only way to make a unit affordable is through public subsidy. Table 8 shows the breakdown of publicly subsidized units currently in Eagan. Table 8: Publicly Subsidized Units, by Type - 2015 Publicly Subsidized Unit Type Units Percentage of Total Housing Units (27,447 in 2015) Senior Unit 321 1.17% People with Disabilities 0 0.00% All Others 258 0.94% Total 579 2.11% Source: Metropolitan Council, 2015 Allocation of Affordable Housing Need Through the regional policies set by Thrive MSP 2040, the Metropolitan Council has identified increasing the number of affordable housing units within the region a top priority. With these policies, the Council calculated how many affordable units each community in the 7-county metropolitan area need to accommodate through land use designations. This allocation of affordable housing need is calculated based on a variety of factors: 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 18 » Projections of growth of households experiencing housing cost burden » Current supply of existing affordable housing, whether subsidized or naturally occurring » Disparity of low-wage jobs and housing for low-wage households within a community Through these calculations, the Metropolitan Council has determined the Affordability Housing Need Allocation for Eagan between now and 2030, as shown in Table 9. Table 9: Affordable Housing Need Allocation for Eagan 2030 Household Income Level Units At or below 30% AMI 232 31 to 50% AMI 100 51 to 80% AMI 140 Total Units 472 Source: Metropolitan Council The way that communities accomplish this affordable housing allocation is by designating adequate vacant land or redevelopable land at minimum densities (units/acre) that are high enough for affordable housing to be an option. Essentially, the more units/acre allowed on a site, the less cost per unit to be built, which makes the development an option for affordable housing developers as well as market-rate developers. The affordable housing allocation does not mean that the City must force the building of this many affordable units by 2030. Rather, through future land use guidance, the City needs to ensure that the opportunity for affordable housing exists by having adequate vacant or redeveloped land guided for higher densities to meet the stated share. Nor is increasing density the only tool available to address affordability issues in housing. Other tools are explored more fully in the Implementation section of this chapter. In order to determine if Eagan can achieve the calculated number of units, we need to determine which Eagan residential future land use designations count towards Affordable Housing Allocation Need. According to the Metropolitan Council, any residential future land use designation that has a minimum density of 8 units per acre or more can count towards affordable housing allocation calculations. Table 10 features all future land use designations for Eagan and their minimum units per acre. 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 19 Table 10: Eagan Future Land Use Designations for Affordable Allocation FLU Min. Units / Acre Qualify? Low Density Residential 0.0 No Medium Density Residential 4.00 No High Density Residential 12.00 Yes Mixed Use – High Density 12.00 Yes – % residential applied Source: HKGi, City of Eagan, Metropolitan Council Any vacant or redevelopable land designated as High Density Residential, or Mixed Use may count towards affordable housing allocation calculations. As seen in Table 11 below, the net developable or redevelopable acres of each applicable land use have been multiplied by the minimum units per acre to determine the minimum number of units that could be developed on this available land. Mixed Use areas assume only a portion of their developable land to be residential, so those percentages apply to the unit count for this calculation. Note: we utilize net developable acreage which removes areas where units cannot be built, such as existing right-of-way, open water, and wetlands. Table 11: Eagan Development Potential for Affordable Allocation Area FLU Acres (Net) Min. units /acre Min. % Res. Units Vacant High Density Residential 10.00 12 100% 120 Central Area Commons High Density Residential 0.95 12 100% 11 Mixed Use (90/10) 7.41 12 90% 80 Mixed Use (70/30) 5.88 12 70% 49 Cliff Road Commons High Density Residential 18.07 12 100% 217 Viking Lakes High Density Residential 45 12 100% 540 Cedar Grove Outlot B High Density Residential 2.7 12 100% 32 Total 1,049 Source: HKGi, City of Eagan Opportunities for affordable housing will be created in the Cedar Grove Commons, Cliff Road Commons, Viking Lakes, and Cedar Grove Special Areas. These areas are proposed to have a sufficient amount of high density residential land available to provide the opportunity for the approximately 475 affordable units 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 20 required in the 2021-2030 Allocation of Affordable Housing Report. With the available vacant land throughout the city as well as the high density residential, and mixed use high density residential in the Special Area Plans, Eagan is able to meet its allocation of affordable housing need by 2030. However, providing land uses at densities that allow for affordable housing is not enough to ensure that housing will be affordable in the future. The City further explores programs and policies that attempt to address affordability at many levels in the Implementation section of this chapter. Housing Conditions, Preservation, and Maintenance As many of Eagan’s homes are starting to hit 30 years in age, during timeframe of this Comprehensive Plan, housing maintenance will begin to be an issue. As noted previously, 30 years is generally considered the point after which homes may need major renovations and repairs. This, coupled with an aging population, will likely result in the City needing to take a more proactive approach. The City began an effort of monitoring residential housing beginning with the 1998 Comprehensive Plan Update (adopted in 2001). The city examined the condition of its housing stock via a windshield survey that focused on the exterior maintenance of residential properties at least 20 years old. That survey revealed that Eagan’s housing stock was predominately in good condition; however, some limited concentrations were identified to have the potential to begin to show maintenance issues within the next ten years. In 2006, a follow-up survey to reexamine areas of concern identified in the 1998 survey using a more specific approach to determine actual types of maintenance issues, such as roofing, siding or windows was completed. Again, the vast majority of areas surveyed remained in good condition; however, the survey was valuable in identifying weakening conditions present in some of the existing housing stock. Starting in late 2014, the City has adopted a proactive code enforcement process that systematically reviews housing conditions over large neighborhoods while enforcing property maintenance regulations for compliance with City Code. The City anticipates continuation of a monitoring program through these types of surveys and will use the findings in the future as basis to help determine where specific efforts may be warranted to 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 21 make certain the City’s housing stock remains in good quality condition. In addition to the monitoring program, the City should regularly evaluate neighborhood and housing conditions to determine what actions need to be taken to ensure its neighborhoods continue to be safe, livable and desirable. Within the Twin Cities region there are a number of communities who have approached this issue successfully and can serve as a resource when needed. Implementation Strategies by Housing Need Life Cycle Housing One method of monitoring the housing supply is conducting housing needs assessment as was done by Maxfield Research in 2013. Review City Code requirements to identify and remove barriers to sustainability and green development techniques Collaborate with other agencies on loan funds for apartment remodeling and property improvements Encourage higher density housing in amenity-rich areas, such as transit investments, and walkable mixed use areas Aging of the Population Promote housing practices that support aging-in-place (e.g. universal design, walkable streets, multiple housing types available within neighborhoods) Explore loan and grant opportunities to develop shallow- and deep-subsidy senior housing Affordability As other opportunities arise, the City will investigate partnerships with Dakota County and private sector developers to create additional housing with a range of affordability. The City will also focus efforts on retaining existing affordable housing units through targeted maintenance and revitalization efforts in partnership with the Dakota County CDA. The City will support acquisition and renovation of deteriorated housing by the Dakota County CDA for resale or rental of the renovated dwellings. 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 22 Consider using incentives for redevelopment projects which include a minimum proportion of affordable units Housing Conditions, Preservation, & Maintenance Allocate staff to specifically focus on housing related issues. Serve as conduit of information for people interested in remodeling their home, such as advice on how to hire a contractor and what the process might be. Collaborate with other agencies, such as the Dakota County CDA on programs that provide financial assistance for important renovations and repairs. Explore incentives and assistance programs with the CDA to help apartment owners with renovations. Reach out to community organizations to see if they can facilitate assistance to seniors and families in need of yardwork and maintenance. Promote the availability of assistance services for seniors. Consider a point of sale housing inspection program which requires homes to be inspected and certification obtained before transfer of ownership or closing. Continue to monitor the condition of the housing stock on a regular basis to identify housing maintenance needs Explore programs to connect homeowners to remodeling assistance programs Housing Tools A majority of the housing tools available in Eagan are programs run by the Dakota County Community Development Agency (CDA). The CDA functions as the City’s Housing and Redevelopment Authority (HRA). The CDA was established in 1971 and has been a leader in providing affordable housing for over 45 years. Over the years, Eagan property owners have contributed millions of dollars to the CDA via the Dakota County CDA tax levy, $1.3 million alone in 2016. Additionally, the City has ear marked the vast majority of its CDBG allocations to the CDA which has averaged approximately $200,000 per year since the 2030 plan was adopted. The City will continue its close relationship with the CDA, and look to other opportunities to make housing more affordable within Eagan. 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 23 Table 12: Housing Implementation Tools Tool Circumstances & Sequence of Use Housing Need Community Development Block Grants (CDBG) through Dakota County CDA Following HUD’s schedule of annual CDBG allocations, the City will continue to reserve a portion of our CBDG allocation each year for the home rehabilitation program for low- and moderate- income homeowners. The City would support the CDA’s use of CDBG funds to create a low-interest revolving loan fund for the rehabilitation of existing rented units that are affordable to households with 50% AMI or below. Affordability Housing Conditions, Preservation, & Maintenance HOME – Home Investment Partnership Program CDA administers the HOME program for Dakota County. They allocate funding from a consortium with Anoka, Ramsey, Washington, and Dakota Counties as well as the Cities of Coon Rapids and Woodbury. Funds are used to develop affordable medium and high density housing development The City will explore with the CDA the application for HOME funds to provide rental assistance to very-low, low, and moderate income households that are in existing rental units in the City. Life Cycle Housing Affordability Emergency Solution Grants (ESG) CDA program that looks to address emergency housing needs. Funds may be used for five components: Street outreach Emergency shelter Homelessness prevention Rapid re-housing assistance HMIS (Homeless Management Information System) The City will support the CDA’s efforts with local non-profits to establish a referral network to ensure emergency funds can reach the greatest need Affordability Home Improvement Loan Program Administered through CDA utilizing CDBG and MHFA funds to provide rehabilitation loans to low- and moderate-income homeowners for projects. Housing Conditions, Preservation, & Maintenance MHFA Rehabilitation Loan Program CDA administers Minnesota Housing Finance Agency loan funds through their Home Improvement Loan Program (above). MHFA Rehabilitation Loan Program funds are specifically meant to serve very low-income homeowners at or below 30 percent AMI. The City will support, through its partnership with the CDA, the application of funds through the MHFA, to provide very low- income homeowners with these funds Housing Conditions, Preservation, & Maintenance Affordability Weatherization / Weatherization Plus The City will continue to support the CDA program utilizing funding from federal Low-Income Weatherization Assistance Program (WAP), providing weatherization services to homeowners and renters. Housing Conditions, Preservation, & Maintenance 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 24 Tool Circumstances & Sequence of Use Housing Need Housing Counseling CDA provides free one-on-one sessions as well as in-depth classes for a fee regarding a variety of topics for homeownership and financing. Homebuyer counseling Homebuyer education Refinance counseling Foreclosure counseling The City will encourage the CDA to update its reference procedures and training for applicable staff, including a plan to maintain our ability to refer residents to this program for housing counselling Life Cycle Housing Affordability Housing Conditions, Preservation, & Maintenance First Time Homebuyers Program CDA provides low-interest mortgage financing for first time- homeowners Life Cycle Housing Senior Housing Program The CDA has partnered with Dakota County to develop and construct affordable senior housing throughout the County. Aging of the Population Workforce Housing Program The CDA partners with private corporations to fund the construction of workforce housing for moderate-income families. These developments often utilize Low Income Housing Tax Credits in their financing as well Life Cycle Housing Affordability HOPE (Housing OPportunities Enhancement) Program CDA and Dakota County program to provide gap-financing for the acquisition, new construction, and preservation of affordable housing – both rental and ownership. HOPE assisted units are rental units affordable to households at or below 50% AMI, or homeownership units affordable to households at or below 80% AMI Life Cycle Housing Affordability Low Income Housing Tax Credits CDA allocates Minnesota Housing tax credits to housing developers for projects that have subsidized units. The CDA has also been a developer of units that utilize Low Income Housing Tax Credits Life Cycle Housing Affordability Housing & Redevelopment Authority (HRA) The CDA will continue to function as the City of Eagan’s Housing and Redevelopment Authority. The City will review the Housing Implementation Plan on a regular basis, to ensure resources are being utilized effectively Tool addresses multiple housing needs and improves our housing strategy capacity in general Housing Bonds The City supports the CDA’s issuance of Housing Bonds for the development of units serving low- and moderate-income households Affordability Tax Abatement The City does not plan on using Tax Abatement for residential development Tax Increment Financing (TIF) The City would consider Tax Increment Financing for redevelopment projects in Mixed Use areas that provide opportunities for affordable housing for very low-, low-, or moderate-income households and meet City redevelopment goals Affordability 2040 Comprehensive Plan Chapter 4: Housing Draft (v3) City of Eaga n , Minnesota 25 Tool Circumstances & Sequence of Use Housing Need Consolidated RFP through the MHFA The City would consider supporting/sponsoring an application to the Consolidated RFP programs through MHFA for residential project proposals in areas guided for high density residential uses and mixed uses Affordability Life Cycle Housing Land Bank Twin Cities The City would encourage developers and property owners to work with the Land Bank of the Twin Cities. The City would support CDA participation in the Twin Cities Land Bank “First Look” program to strategically acquire any foreclosed properties that are guided at High Density Residential or Mixed Use as shown on our future land use map and represent a reasonable location to expect housing which includes affordable units for very low-, low-, or moderate-income households. Affordability Local Funding Resources: Livable Communities Demonstration Account (LCDA) through Metropolitan Council The City would consider supporting/sponsoring an application to Livable Communities Account programs for proposals with residential units in areas guided as high density residential as well as mixed use areas Life Cycle Housing Site Assembly The City would consider supporting/sponsoring an environmental clean-up grant application for housing projects that provide affordable units for very low-, low-, and moderate-income households Affordability Referrals The City will continue to maintain our ability to refer our residents to any applicable housing programs available through the CDA Tool addresses multiple housing needs and improve our housing strategy capacity in general Guiding land at densities that support affordable housing See our future land use plan and projected housing needs section of the housing chapter of this comprehensive plan Tool to address multiple housing needs and improve our housing strategy capacity in general Participation in Housing Related Organizations: Regional Council of Mayors The Mayor of Eagan will participate or designate an appropriate representative to actively engage in the Urban Land Institute Minnesota’s Regional Council of Mayors Group Tool to address multiple housing needs and improve our housing strategy capacity in general Zoning and Subdivision Ordinances The City will regularly review our zoning and subdivision ordinances to identify any regulations that inhibit the housing priorities in this document. Tool addresses multiple housing needs and improve our housing strategy capacity in general Expedited Pre-application The City will continue the successful pre-application process to identify ways to minimize unnecessary delay for projects that address our stated housing needs, prior to a formal application submittal. Tool addresses multiple housing needs and improve our housing strategy capacity in general 2040 Comprehensive Plan Chapter 4: Housing (Draft v3) 26 Tool Circumstances & Sequence of Use Housing Need Housing Maintenance Programs The City will consider rental licensing and point-of-sale programs to ensure the upkeep and maintenance of rental and owner- occupied properties in Eagan Housing Conditions, Preservation, & Maintenance 2040 Comprehensive Plan 1 Chapter 9 Economic Development (Draft v3) Eagan continues to serve as a key hub for employment and economic growth in Dakota County and the southern portion of the Twin Cities metro area. The position of the City of Eagan with regard to economic development remains strong due to a number of factors, including: » Convenient vehicular access to the broader metro area, provided by Interstate 494, Interstate 35E, and TH 77 » Convenient access to Minneapolis-St. Paul International Airport » A local street network which allows a high level of access and mobility » A positive community attitude regarding economic growth and redevelopment » A well-educated population base While the community has been successful in attracting businesses in the past, the community recognizes that business development and retention is an ongoing activity. The City has a role in providing for economic development and reinvestment to ensure that its residents have quality places to work, the shops and services desired are available, and that the community’s tax base is sufficiently diversified. In addition, the nature of economic development in Eagan is changing, as the community is nearly fully built out. Eagan has shifted from an edge city with traditional forms of suburban development to a mature suburb that encourages reinvestment and redevelopment. The City encourages and supports private investment and economic activity and has adopted a Business Assistance Policy that provides a policy framework for how and when the City may financially participate in economic development. For example, the efforts to complete plans for the Cedar Grove Redevelopment Area provided the City experience in managing the challenges presented with the acquisition and assembly of multiple parcels and the impacts of market influence. The City persevered through fifteen years of redevelopment efforts for the Cedar Grove area, and the nearly complete project is now considered a success in the community. Existing Conditions and Trends This section provides an overview of key developments and trends in economic development in Eagan over the last several years, as well as key economic and market data and projections for Eagan. The current 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) 2 economic landscape in Eagan provides the foundation for the continued growth and evolution of the community from an economic development perspective, through 2040. Recent Developments and Trends The Central Park Commons project, on the site of the former Lockheed Martin campus, and the new Viking Lakes development, represent good examples of how Eagan will continue to shift its economic development efforts from greenfield development to infill development and the expansion of existing businesses. The City will continue to promote private investment and a proactive response to changing market forces as key components of its economic development strategy. The City of Eagan suffered from diminished economic activity during the Great Recession, but has experienced a strong economic recovery over the last few years, adding 4,500 new jobs from 2012 to 2016. The near completion of the Cedar Grove Redevelopment Area and the Central Park Commons redevelopment project, the consolidation of Prime Therapeutics operations to Eagan, the development of Databank (which brought new fiber route diversity and the ability to co-house more than a dozen telecommunications carriers), and the anticipated completion of the Vikings headquarters and training facility and associated office and retail development as part of Viking Lakes, highlight the economic development successes of the community over the last five years. In addition to these higher profile projects, Eagan experienced a development surge in both the hospitality and multi-family housing sectors in 2016 and 2017. Five new hotel projects have either been completed, planned or under development during this time frame, with the potential for additional hotels as part of the Viking Lakes development. Given the overall strength of the multi-family market and the strategic location of the community near the airport and the I-494 employment corridor, developers added 300 new rental apartment units in Eagan in 2015 and had around 300 additional units under construction during 2017. Multi-family units dedicated to various levels of the senior market are also being added to the City with over 400 units recently completed or under construction. The overall residential market has strengthened considerably since the end of the Great Recession, as the overall median price of for-sale homes in Eagan increased from around $194,000 in 2012 to $259,000 in 2016, according to the Minneapolis Area Association of Realtors. The City of Eagan will continue to partner with various organizations and initiatives in the local area to drive economic development and reinvestment in the community. As Eagan is an important employment center, the community works regularly with Greater MSP at the regional level to market the City. The City partners with the Dakota County CDA 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) City of Eaga n , Minnesota 3 on “Open for Business”, a service that provides consulting services and potential gap financing to small Eagan businesses. AccessEagan is a light-speed, high-performance, wholesale fiber network built by the City of Eagan to enhance business performance and help the community attract additional companies over time. Key Economic Data As outlined in the following table, Eagan accounted for over 30 percent of all employment in Dakota County in 2016 and the anticipated growth in the City from 2016 to 2040 will represent just over 25 percent of the total growth in employment in the county during the period. Eagan Dakota County Twin Cities (7-County Metro) 1970 5,450 31,100 779,000 1980 10,358 62,134 1,040,000 1990 26,000 102,677 1,272,773 2000 42,750 154,242 1,607,916 2010 49,526 170,235 1,544,613 2016 57,226 187,208 1,704,360 2020 (Projected) 59,500 203,130 1,791,080 2030 (Projected) 64,700 219,660 1,913,050 2040 (Projected) 69,800 236,300 2,032,660 Total Change, 2016 - 2040 12,574 49,092 328,300 Source: Metropolitan Council As outlined in the following table, Eagan has a greater concentration of its employment base in the Services sector, compared to Dakota County overall and the broader metro area, and less concentration in the retail sector of the economy. It also has less of a concentration in the Manufacturing and Government sectors. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) 4 CITY OF EAGAN EMPLOYMENT BY INDUSTRY, 2017 City of Eagan Dakota County Twin Cities Metro Area % of Total % of Total % of Total Agriculture & Mining 0.3% 1.1% 0.9% Construction 2.9% 4.2% 3.6% Manufacturing 9.0% 10.4% 10.7% Transportation 6.7% 4.3% 2.7% Communication 0.8% 0.8% 0.8% Utility 0.3% 0.5% 0.4% Wholesale Trade 4.2% 5.1% 4.8% Retail Trade 14.8% 22.0% 20.0% Finance, Insurance, Real Estate 9.3% 6.8% 7.5% Education 3.2% 6.8% 7.8% Health Services 4.6% 6.3% 10.5% Other Services 41.1% 26.9% 25.1% Government 2.9% 4.7% 4.8% Total Source: ESRI Eagan continues to have a very strong base of educated workers that bolsters its ability to attract new employment and new industries. Over half of all residents over the age of 25 have at least a Bachelor’s Degree, representing much higher percentages than those for Dakota County and the broader metro area. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) City of Eaga n , Minnesota 5 2017 Population (Age 25 +) by Educational Attainment City of Eagan Dakota County Twin Cities Metro Area Less than 9th Grade 1.3% 1.9% 2.9% 9th - 12th Grade, No Diploma 2.0% 3.0% 3.6% High School Grad or Equivalent 14.5% 20.7% 21.5% Some College, No Degree 18.2% 20.7% 20.5% Associate Degree 12.2% 12.0% 10.6% Bachelor's Degree 34.0% 28.3% 26.7% Graduate / Professional Degree 17.9% 13.4% 14.3% Source: ESRI Information from CoStar and from additional research of the local market revealed the following key facts and takeaways regarding the markets for local real estate and their impacts on economic development in Eagan. » As of the end of 2016, Eagan had the largest amount of industrial space in Dakota County with 12.1 million square feet of industrial space within its boundaries. » The job base in Eagan has continued to experience a decline in manufacturing employment, as the service sector has continued to remain dominant in the community. » The City of Eagan had around 3.5 million square feet of retail / commercial space at the end of 2016, representing an increase of around 750,000 square feet since the end of 2008. Several key projects including the Central Park Commons and the completion of the Twin Cities Premium Outlets have contributed to the increase in retail space and bolstered Eagan’s position in the local retail market. » Eagan had around 5.5 million square feet of office space at the end of 2016, an increase of around 100,000 square feet since the end of 2008. The completion of various office projects in and around the new Viking Lakes development, including Prime Therapeutics and White House Custom Colour, will contribute to an increase in office space in the city over the next few years. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) 6 Issues and Needs Availability of vacant land and suitable sites The amount of vacant land available for development has steadily decreased in Eagan over the last few decades as the community has moved toward full build-out. Sites available for development often have site assembly or environmental issues. The private sector may require city involvement on various projects, including city assistance in property acquisition and tenant relocation, the provision of necessary utilities and infrastructure, the application of land use, zoning, or special district powers, and conducting special studies to evaluate the feasibility of and strategies for development. Infill and redevelopment projects have become more prevalent in Eagan. The City has become more adept in negotiating with developers of redevelopment projects and in facilitating open communication between development applicants and existing residents and business owners in the vicinity of redevelopment projects. These efforts will continue over the next few decades as Eagan continues to experience ongoing infill and redevelopment projects. Aging of Buildings The City will need to continue to monitor its stock of non-residential buildings to ensure they are appropriately maintained and useable. Some buildings built in the 1970’s and 1980’s will become outmoded for certain modern uses or will lack the technological connectivity demanded by today’s businesses. These buildings will need to be substantially renovated or replaced over time. Labor Force Availability A key locational decision for all businesses is the availability of an appropriate labor force. While Eagan is fortunate to be located near a large population base and the regional transportation network, the community will be affected by the projected narrowing of the ratio between workers retiring and workers entering the workforce. The aging of the population may also change the nature of work arrangements as seniors may want to remain in the labor force, but with alternative or flexible work arrangements. In addition, the state of Minnesota overall is contending with a “skills gap” in employment markets, in which companies have difficulty finding sufficient candidates to fill openings that call for particular technical skills or abilities. While labor force availability is not something the City can solve on its own, it can work cooperatively with businesses, developers, local schools, and other organizations to formulate strategies to address labor force issues. Efforts to enhance labor force availability may involve diversifying the housing stock in 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) City of Eaga n , Minnesota 7 Eagan, supporting the expansion of transit service, and maintaining a functioning transportation network for all populations. In order to ensure that businesses in the community have a sufficient pipeline of qualified and appropriate employees, the City and business organizations in the area should expand ties and relationships with local schools in order to ensure that programs offered locally fit the needs of local employers for skilled workers. Broadband Connectivity Technological advancements have changed the nature of business infrastructure needs. In addition to evaluating a community’s water and sewer availability, businesses are now frequently assessing their degree of broadband connectivity. Businesses are interested in how accessible desired broadband connectivity is, as well as its speed, cost and reliability. The City will continue ongoing efforts to provide or ensure that others provide sufficient broadband capacity for existing and future businesses in the community. Active Living With labor costs being one of the most expensive components of business, maintaining a healthy workforce is a priority. Supporting employees’ efforts in maintaining an active lifestyle can be beneficial to a company in terms of lower health costs and having fewer days out of work. Business continue to explore ways to encourage activity, including providing locker rooms for employees who walk or bike to work, locating operations in areas that are easily accessible to trails and sidewalks, subsidizing health club memberships, and supporting company athletic teams. Vision Statement The City has identified the following overarching vision statement for Economic Development: To foster a strong and diverse tax base, broad employment opportunities, appropriate services, a high quality of life and an attractive City image. The goals and policies on the following pages were developed to reflect this vision statement. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) 8 Goals and Policies Diverse Tax Base Goals 1. To encourage resiliency by supporting a broad range of businesses in terms of size, type and market emphasis to protect the community against economic cycles. 2. To be proactive and responsive to economic development opportunities. 3. To attract and support businesses that produce goods and services for regional, statewide, national and international markets. 4. To take reasonable actions to provide sufficient areas of land designated for industrial and commercial ventures. 5. To reasonably protect and enhance land values through public investment in critical infrastructure, services, and code enforcement. 6. Where applicable, the City will act as a conduit to assist local businesses in accessing capital, as a way to attract and retain businesses in Eagan. Achieving this goal may involve leveraging State and/or Federal funding sources. Policies 1. The City will monitor the existing business environment to identify potential industrial clusters and growth sectors. 2. As the City is nearly fully developed, the city should continue to look for redevelopment opportunities in areas where existing uses are obsolete, underutilized or inappropriately located. The City will employ appropriate metrics to identify parcels or areas of the community that are more suitable for redevelopment over the near term, and then work proactively with property owners to examine redevelopment options and possibilities. 3. The City will discourage the removal of commercial and industrial lands from the tax rolls unless it is in the public interest. 4. The City will encourage market supportable commercial developments dispersed appropriately throughout the community. 5. To support interstate and international trade, the City will support initiatives by the State legislature and the Minnesota Department of Employment and Economic Development (DEED). 6. The City will serve as a conduit for local businesses to take advantage of State and Federal programs that can help leverage capital. The City will educate local businesses and entrepreneurs regarding the various types of municipal, state, and federal economic development programs and incentives available. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) City of Eaga n , Minnesota 9 7. The City will support initiatives that may include developing small business incubators and entrepreneurial support spaces such as co- working and meeting spaces, and providing strong cellular coverage and high speed fiber for local businesses and remote workers. 8. The City will develop, or encourage the development of, secure and resilient broadband networks which provide world-class Internet speeds, leading edge connectivity (wired and wireless), and affordable access for all Eagan residents and businesses. 9. To support the development and retention of a broad range of businesses, the City will continually compile and coordinate information and statistics concerning land availability, demographics, employment, and the local work force. Broad Employment Opportunities Goals 1. To support broad employment opportunities for all residents of the City. 2. To support the development of a work force that has the skills needed to meet the needs of local businesses. 3. To support employment opportunities that relate to regional, state, national and international economies. Policies 1. The City will encourage networking with local civic and service organizations and educational institutions to provide access to information on available employment opportunities and vocational and job-skills training. 2. The City will continue to support the Dakota-Scott Workforce Development Board and its partnerships with local colleges and universities to provide customized training opportunities tailored to local businesses and business groups. The City will also continue to pursue workforce development grant opportunities and educational partnerships with regional and state economic development entities. 3. Recognizing that not all employees of local businesses live in Eagan, the City will strive to provide a complete network of roads and public transit service to link employees to employers. 4. The City will work with the Chamber of Commerce, Eagan Convention and Visitors Bureau, and other organizations to foster linkages between employers and employees. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) 10 Services and Quality of Life Goals 1. To ensure that all businesses have access to the appropriate public services necessary to meet their business and security needs. 2. To ensure businesses have access to the appropriate physical infrastructure necessary to meet their business needs. 3. To strive to provide public services and infrastructure in the most efficient and cost-effective manner possible. 4. To foster a mix of commercial retail uses to meet the needs of City residents and employees of Eagan businesses. Commercial uses will be encouraged in locations that provide concentrations of complementary businesses and provide a variety of choices for consumers. 5. To encourage a diverse range of public and private recreation and entertainment opportunities and gathering places for all segments of Eagan’s residential, workforce and visitor populations. 6. To strengthen a sense of community and ensure that neighborhoods are safe, attractive, and well linked to nearby commercial developments (in terms of walking and biking). Policies 1. The City will continue to work with County, State and Federal agencies to ensure the major roadway network is adequately improved, maintained and coordinated with the existing transportation system to meet the needs of businesses, the local workforce and Eagan residents. 2. The City will continue to support and improve workforce access to alternative means of transportation (e.g. bus, car-pooling, trails and sidewalks, and ride share programs) where appropriate. 3. The City will continue to work with public utilities to facilitate the appropriate level of support for communications technology infrastructure. 4. The City will develop and regularly update a Broadband Plan to ensure its residents and businesses have world-class broadband access, and to specify the appropriate role of the City, if any, in fostering leading-edge broadband. 5. The City will consider actions and policies which facilitate industry partnerships for the testing and deployment of next-generation technologies. 6. The City will encourage the creation of compact commercial developments that more efficiently use infrastructure and resources. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) City of Eaga n , Minnesota 11 7. The City will support partnerships between schools, government and the business community to provide mentoring and internship programs. 8. The City will encourage businesses to incorporate green space, sidewalks and trails, and other amenities that enhance the attractiveness, quality and marketability of their properties. 9. The City will refine its design standards for commercial and industrial development periodically, to ensure that developments will provide sufficient green spaces, paths, sidewalks and other amenities. The design guidelines will also ensure the appropriate use of building materials and façade treatments to enhance the aesthetic quality of developments. 10. The City will carefully consider opportunities to complete public investments that provide for important enhancements to the quality of life in Eagan. 11. The City will leverage the findings of Eagan Forward and other community initiatives with regard to quality of life, where appropriate. It will continue to measure its progress against benchmark communities identified in the Eagan Forward report. Image Goals 1. To promote a positive, attractive, and vibrant image of Eagan as a desirable place to live, work, conduct business and recreate. 2. To clearly communicate the City’s development processes, services, and regulations, and ensure the timely processing of development applications. 3. To ensure that the appearance of commercial and industrial development will enhance the property values of adjacent areas rather than serve as a distraction or detriment. Policies 1. The City will utilize existing communication tools to promote the City and expand the awareness of community assets. 2. The City will strengthen business outreach efforts and become more proactive in business outreach. The City will work with local service organizations and realtors to promote the City’s image. 3. In order to provide excellent customer service, the City will routinely identify and analyze its customers, their needs, and how to communicate with them, including increasing the use of electronic communications when appropriate. 2040 Comprehensive Plan Chapter 9: Economic Development (Draft v3) 12 4. The City will promote a sense of community and community identity through the recognition of Eagan as an economic activity center and as the business community of choice for the location of corporate headquarters. COMPREHENSIVE GUIDE PLAN UPDATE Plan Highlights Storm Water Plan supports the City’s consideration of implementation of storm water system improvements to meet the level of flood protection indicated by the new standard (NOAA Atlas 14) precipitation frequency rainfall estimates that are 24% greater than the rainfall estimates used in the previous plans. Improved computer modeling software provides the ability for greater precision of storm projections and related improvements, while limited as-built system data restricts the accuracy of preliminary designs for future cost estimates. Discussions of an appropriate Factor of Safety to accommodate these higher rainfall event estimates, together with the collection of existing system data, should be concluded before inclusion of any new storm system upgrade projects in the Capital Improvements Plan (CIP). Sanitary Sewer The Public Works Committee will discuss the plan continuing to support the future provision of utility services to Rosemount through a proposed joint powers agreement. Projected reductions in water production/usage will likely impact the sanitary sewer mains both positively and negatively; capacity of the sewer system would be increased, while maintenance of the mains may need to be increased due to reduced flows. Water Plan supports the City’s consideration of a 10-15% reduction in per capita water production, in cooperation with other Dakota County cities, to support aquifer supply sustainability. Future discussions will likely consider impacts of reduced water usage, provision possibly at a higher fee rate to customers to offset production inefficiencies and collaborative efforts for water reuse with adjacent cities and agencies. Plan also addresses public safety measures at water treatment plants. Integrated Water This new planning trend looks at water more holistically and considers the implementation of a new “utility” that provides non-potable water for irrigation, fire protection and industrial purposes through the possible “reuse” of untreated ground water or treated sewage (storm water or sanitary). Water Resources Plan proposes modifications of current lake classifications and ranking priorities, distinguishes “regional park” lakes that the City won’t be managing, and adds four lakes to the City’s priority lakes group. Plan supports clarified goals for managing nutrients (i.e., phosphorus), algae, aquatic plants, invasive species, and fisheries. Plan also supports Eagan’s ongoing, proactive steps to reduce the application of road salt for winter ice and snow control, as much as possible without compromising public safety, to lessen potential adverse impacts (via runoff) of chloride on lakes and wetlands. Plan collaborates with the Storm Water Management Plan to ensure Water Quality efforts are maximized with storm sewer improvements wherever possible. Transportation Plan supports consideration of enhanced use of transit and non-motorized modes of transportation through greater infrastructure investment. Plan also supports continuation of the City’s leadership in the analysis and improvement of regional transportation infrastructure, along with support of similar efforts through Dakota County’s Transportation Sales and Use Tax Program. Plan recognizes the likely need to be responsive to a significant increase in the use of autonomous vehicles. Broadband Communications Plan supports further consideration of the continuation of development, publicly or privately, of broadband networks which provide world-class Internet speeds, leading edge connectivity, and affordable access for all Eagan residents and businesses. Plan also supports management of small wireless facilities or small cell technology/networks within the public right-of-way and on public facilities in accordance with state statutes. Special City Council Workshop January 9, 2018 V. PRESENTATION OF 2017 BUSINESS SURVEY RESULTS Action to be Considered: No formal action is needed. Facts:  Every two years, the City of Eagan seeks to survey business owners and managers about their perspectives on the community, including the business and economic climate, local services, the most serious issues facing their business, and what role—if any—the City of Eagan should have regarding those issues. The results are meant to offer the City Council and staff a snapshot of the business viewpoint about community quality and government services.  For the 2017 survey, the City partnered with National Research Center (NRC) to conduct the National Business Survey (The NBS™). For the first time this allows benchmarking with a small but growing number of cities. More importantly, the National Business Survey™ is an assessment tool to gather opinions of businesses on a range of community issues, services and amenities giving Eagan decisionmakers first-ever feedback on how businesses think the City is doing on everything from the delivery of public safety services to transportation and snow plowing.  All addressable Eagan businesses (1,855) received three mailings in October 2017 containing an invitation to complete the online survey. Nearly 200 surveys were completed, yielding a response rate of 12% and a margin of error of +/- 5%.  Eagan ranked higher than the national benchmark in numerous categories—and was never lower than the benchmark—but even its average scores provide insights and opportunities from which to learn. Communications Director Tom Garrison and Strategic & Digital Communications Coordinator Crystal King will provide a brief presentation highlighting the survey results and be available to answer questions. Attachments: (2) V-1 National Business Survey (NBS) 2017 Business Climate Report V-2 National Business Survey (NBS) 2017 Eagan Resident & Business Comparisons Report 2955 Valmont Road Suite 300 Boulder, Colorado 80301 n-r-c.com • 303-444-7863 Eagan, MN Business Climate Report 2017 NRC is a charter member of the AAPOR Transparency Initiative, providing clear disclosure of our sound and ethical survey research practices. The National Business Survey™ © 2017 National Research Center, Inc. Contents About ...................................................................................................... 1 Highlights ............................................................................................... 2 Doing Business in Eagan ...................................................................... 3 Community Characteristics ................................................................... 4 Governance ........................................................................................... 6 Business Climate ................................................................................... 8 Workforce .............................................................................................. 9 Special Topics ...................................................................................... 11 Page 1 The National Business Survey™ © 2017 National Research Center, Inc. About The National Business Survey™ (The NBS) report is about the business climate of Eagan and provides guidance about community characteristics and services that support local businesses. Great communities are partnerships of the government, private sector, community-based organizations and residents, all geographically connected. The NBS captures business owners’ and managers’ opinions across eight central facets of community livability (Safety, Mobility, Natural Environment, Built Environment, Economy, Recreation and Wellness, Education and Enrichment and Community Engagement). The Business Climate Report provides the opinions of a representative sample of 198 business owners and managers of the City of Eagan. Because no statistical weighting was performed, no traditional margin of error was calculated. However, because not all business owners or managers responded to the survey, NRC recommends using plus or minus five percentage points as the “range of uncertainty” around any given percent reported. The full description of methods used to garner these opinions can be found in the Technical Appendices provided under separate cover. Communities are partnerships among... Residents Community- based organizations Government Private sector Page 2 The National Business Survey™ © 2017 National Research Center, Inc. Highlights Eagan business owners and managers value the community as a place to do business and feel positively about the business climate. Nearly all survey respondents rated their quality of life in the City as excellent or good. Business respondents’ ratings of quality of life were higher than ratings in other communities across the nation. When considering Eagan as a place to work, 99% of business owners and managers felt it was excellent or good while about 88% felt it was an excellent or good place to visit. At least 9 in 10 business owners rated Eagan as a place to do business and the overall image and appearance of the city favorably, each rating was higher than the national comparison. About 97% of survey respondents would be very or somewhat likely to recommend operating a business in Eagan (higher than the national average) and planned to keep their business in Eagan for the next five years. Economy is important to business owners and Economy ratings are strong. Business owners chose the overall economic health of Eagan as a top area for the Eagan community to focus on in the coming years. All five Economy-related Community Characteristics listed in the survey were rated positively by at least 86% of respondents and these ratings were all higher than the national comparisons (e.g., overall economic health, shopping opportunities, vibrant commercial area). About 9 in 10 respondents gave positive evaluations to economic development as a facet of Governance; further, the other three listed aspects of Governance were rated higher than the national benchmarks including retaining existing businesses, attracting new businesses and supporting or creating new jobs. A majority felt positive about the impact of the economy on their revenues in the coming six months; a rating higher than the national comparison. Business owners do not anticipate a space or location change in the next year but are experiencing a shortage of qualified applicants. When asked to consider space needs and possible location changes in the next year, a majority indicated they were not planning to expand space in Eagan in the next year and nearly all respondents were not planning to move their business out of Eagan, decrease space in Eagan or close their business. With regard to workforce, about 48% of survey respondents planned to hire within the next 6 to 12 months and a similar percentage of survey respondents gave an excellent or good rating to their overall impression of job applicants (45%) in their most recent hiring experience. However, only one-third of business owners offered excellent or good ratings to the number of qualified applicants; a rating lower than the national comparison. Page 3 The National Business Survey™ © 2017 National Research Center, Inc. Doing Business in Eagan Knowing where to focus resources to establish or preserve a thriving business climate requires information that targets features that are most important to the business community. Overall, 9 in 10 business owners rated Eagan as an excellent or good place to do business. This rating was higher than ratings in comparison communities (see Appendix B of the Technical Appendices provided under separate cover). Business owners rated eight facets of community (Safety, Mobility, Natural Environment, Built Environment, Economy, Recreation and Wellness, Education and Enrichment and Community Engagement) in two dimensions on the survey, first by their overall quality and then how important each was for the City to focus on in the next two years. The chart below summaries these ratings by showing how each facet’s quality compared to the benchmark; stars indicate the areas deemed most important for Eagan’s efforts in the future. Business owners identified Safety and Economy as priorities for the Eagan community in the coming two years. This conclusion is based on results from question 9 on The NBS: “please rate how important, if at all, you think it is for the Eagan community to focus on each of the following in the coming two years .” Ratings for both Economy and Safety were strong and higher than the national benchmark along with ratings for Mobility, Natural Environment, Built Environment, Recreation and Wellness and Community Engagement . Ratings for Education and Enrichment were similar to the national benchmark. This overview of the key aspects of community quality provides a quick summary of where businesses see exceptionally strong performance and where performance offers the greatest opportunity for improvement. Linking quality to importance offers community members and leaders a view into the characteristics of the community that matter most and t hat seem to be working best. Excellent 44% Good 48% Fair 7% Poor 1% Place to do business Education and Enrichment Community Engagement Mobility Natural Environment Recreation and Wellness Built Environment Safety Economy Legend Higher than benchmark Similar to benchmark Lower than benchmark Most important Page 4 The National Business Survey™ © 2017 National Research Center, Inc. Community Characteristics Overall quality of community life represents the natural ambience, services and amenities that make for an attractive community. How the business community views the overall quality of life is an indicator of the overall health of a community. In the case of Eagan, 97% felt the city had an excellent or good quality of life. (Please note that percentages may not total to 100% due to the customary practice of rounding.) Respondents’ ratings of quality of life were higher than ratings in other communities across the nation. In addition to rating the city as a place to live, business owners and managers rated several aspects of community quality including Eagan as a place to work, to retire and to visit, the overall image or reputation of Eagan and its overall appearance. Overall, most respondents rated each of these aspects favorably, with Eagan as a place to work, Eagan’s overall appearance and overall image being the most positively rated aspect with 95% or more of survey respondents saying these were excellent or good; further, these ratings were also higher than the national comparisons. A high proportion of respondents also felt that Eagan was an excellent or good place to visit (88%) and to retire (73%). Delving deeper into Community Characteristics, survey respondents rated over 25 features of the community within the eight facets of Community Livability. National benchmark ratings tended to be higher than ratings given in communities across the nation. However, exceptions to this include three aspects that were rated similar to the national comparison including ratings of feelings of safety in commercial areas during the day , education and enrichment opportunities and travel by public transportation (which was also the lowest rated Community Characteristic with 49% of respondents offering a positive evaluation). Between 86% and 96% of respondents rated aspects of Economy as excellent or good (e.g., employment opportunities, shopping opportunities, quality of business establishments, vibrant commercial area). Within Mobility, seven of the eight aspects received a positive rating from at least 7 in 10 survey respondents including ease of travel by bicycle and walking and availability of paths and walking trails. Aspects of Natural Environment were rated positively by at least 94% of respondents. 99% 95% 97% 88% 73% Place to work Place to visit Place to retire Overall image Overall appearance Higher Similar Lower Comparison to benchmark Percent rating positively (e.g., excellent/good) Excellent 49% Good 48% Fair 3% Poor 1% Overall quality of life The National Business Survey™ Page 5 The National Employee Survey™ © 2009-2015 National Research Center, Inc. Figure 1: Aspects of the Community 86% 80% 91% 86% 96% 95% 87% 94% 93% 79% 84% 98% 94% 94% 84% 76% 69% 88% 92% 80% 89% 89% 98% 85% 49% 97% Opportunities to participate in community matters Sense of community COMMUNITY ENGAGEMENT Education and enrichment opportunities EDUCATION AND ENRICHMENT Health and wellness RECREATION AND WELLNESS Vibrant commercial area Quality of business establishments Shopping opportunities Employment opportunities Overall economic health ECONOMY Quality of commercial development Housing options Overall built environment BUILT ENVIRONMENT Cleanliness Air quality Overall natural environment NATURAL ENVIRONMENT Paths and walking trails Ease of walking Travel by bicycle Travel by public transportation Travel by car Amount of public parking Traffic flow Overall ease of travel MOBILITY Safe in commercial areas after dark Safe in commercial areas during the day Overall feeling of safety SAFETY Higher Similar Lower Comparison to benchmark Percent positive (e.g., excellent or good, very or somewhat safe) Page 6 The National Business Survey™ © 2017 National Research Center, Inc. Governance The overall quality of the services provided by Eagan as well as the manner in which these services are provided are a key component of how the business community rates their quality of life and the city as a place to do business. Nearly all business owners or managers gave excellent or good ratings to the overall quality of services provided by the City of Eagan which was a rating higher than the national comparison. In comparison, only 6 in 10 respondents gave excellent or good ratings to the services provided by the Federal Government (a rating higher than the national comparison). Survey respondents also rated various aspects of Eagan’s leadership and governance, which tended to be rated higher than the national comparisons. About 9 in 10 business owners or managers offered positive evaluations to Eagan’s overall direction, customer service provided by Eagan employee(s) and Eagan leadership being honest while slightly fewer offered positive evaluations of their level of confidence in City government and the City acting in the best interest of Eagan. Respondents evaluated over 20 individual services and amenities available in Eagan and provided ratings that were both strong and higher than the national comparison for nearly all services and amenities listed. Only one service received a rating similar to the national comparison (garbage collection), however 92% of business owners or managers offered excellent or good ratings to this service. The lowest rated service was housed within the facet of Mobility; about 7 in 10 respondents offered positive evaluations of bus or transit services. All other services related to Mobility were strong with at least 86% of respondents offering positive ratings. Within Economy, retaining existing businesses received the next lowest rating with 74% of respondents offering posit ive evaluations. Other Economy-related ratings fared well with about 8 in 10 respondents feeling positive about Eagan attracting new businesses and supporting or creating new jobs while 93% gave these same positive evaluations to economic development overall. 78% 73% 88% 85% 86% 87% 92% 60% 70% Value of services for taxes paid Informing businesses of community issues and values Welcoming business involvement Overall direction Confidence in City government Acting in the best interest of Eagan Being honest Customer service Services provided by the Federal Government Higher Similar Lower Comparison to benchmark Percent rating positively (e.g., excellent/good) Excellent 47% Good 50% Fair 2% Poor 1% City services The National Business Survey™ Page 7 The National Employee Survey™ © 2009-2015 National Research Center, Inc. Figure 2: Aspects of the Governance 82% 84% 81% 81% 74% 93% 83% 88% 86% 95% 95% 95% 89% 70% 88% 94% 92% 90% 86% 91% 88% 93% 100% 97% 92% Public information (communication to businesses) COMMUNITY ENGAGEMENT City-sponsored special events EDUCATION AND ENRICHMENT Supporting or creating new jobs Attracting new businesses Retaining existing businesses Economic development ECONOMY Code enforcement Building permits and inspections Land use, planning and zoning Utility billing (water/sewer) Power (electric) utility Storm drainage BUILT ENVIRONMENT Recycling Garbage collection NATURAL ENVIRONMENT Bus or transit services Sidewalk maintenance Snow removal Street lighting Street cleaning Street repair Traffic enforcement MOBILITY Emergency preparedness Crime prevention Fire Police SAFETY Higher Similar Lower Comparison to benchmark Percent positive (e.g., excellent or good, very or somewhat beneficial) Page 8 The National Business Survey™ © 2017 National Research Center, Inc. Business Climate City businesses weighed in on the business climate of Eagan. Of those surveyed, 97% would be very or somewhat likely to recommend operating a business in Eagan, which was higher than other municipalities across the nation. While a similar proportion of businesses were likely to keep their business in Eagan for the next five years, this rating was similar to ratings given in municipalities across the nation. About two-thirds felt positive about the impact of the economy on their revenues in the coming six months. When asked about the likelihood of sponsoring charitable events and activities in Eagan, about 7 in 10 businesses indicated they’d be very or somewhat likely, which was similar to the national average. 67% 97% 70% 97% Sponsor charitable events and activities in Eagan COMMUNITY ENGAGEMENT Impact of economy on revenues in the next 6 months Keep business in Eagan Recommend operating a business in Eagan CLIMATE OVERALL Higher Similar Lower Comparison to benchmark Percent positive (e.g., very or somewhat likely, very or somewhat positive) Page 9 The National Business Survey™ © 2017 National Research Center, Inc. Workforce Business owners and managers evaluated several aspects of Eagan’s workforce, including whether they planned to hire in the near future, the types of positions needed as well as the quality of the applicants they have encountered in past. Owners and managers also indicated the extent to which they used various hiring resources available in the community. About half of survey respondents planned to hire within the next 6 to 12 months; about 3 in 10 were unsure if they would be hiring. About half indicated they would be adding technically skilled jobs, 4 in 10 would be adding unskilled labor and 3 in 10 would be adding administratively skilled jobs. Only 15% of business owners and managers were likely to hire for unskilled administrative positions. When asked about their impression of job applicants in their most recent hiring experience, survey respondents gave the most positive ratings to applicants’ prior experience with 56% giving an excellent or good rating. When indicating their overall impression of applicants, 45% gave an excellent or good rating. Only one-third offered positive evaluations to the number of qualified applicants, which was a rating lower than the national comparison. 47% 32% 15% 40% Technically skilled (e.g. medical, computer, architecture, equipment operation, etc.) Administratively skilled Unskilled administrative Unskilled labor Types of positions needed No 25% Yes 48% Not sure 27% Planning to hire in the next 6 to 12 months The National Business Survey™ Page 10 The National Employee Survey™ © 2009-2015 National Research Center, Inc. Figure 3: Aspects of the Workforce 45% 56% 32% Overall impression of applicants Number of qualified applicants Applicant prior experience APPLICANTS Higher Similar Lower Comparison to benchmark Percent positive (e.g., excellent or good) Page 11 The National Business Survey™ © 2017 National Research Center, Inc. Special Topics The City of Eagan included four questions of special interest on The NBS. The first question was about business- related services provided by the City. Generally, few business owners were aware of or had used the various programs listed on the survey including the Open to Business program and AccessEagan. About 45% of respondents were aware of (but hadn’t used) the Eagan Convention and Visitor’s Bureau for meeting, hotel and hospitality assistance, 11% used it and 44% did not know about it; this was the highest level of awareness among the programs. Figure 4: Use and Awareness of Eagan Services Please indicate whether or not you are aware of, or have used, the following services currently offered by the City of Eagan: 86% 72% 68% 64% 51% 44% 13% 21% 27% 30% 37% 45% 1% 7% 5% 6% 12% 11% Open to Business program, which provides assistance through business counseling and gap financing Pre-application meetings for owners considering developments, property improvements or new signage with Planning and Inspection staff Help identifying parcels or buildings for sale within Eagan AccessEagan, a high-speed fiber service for Eagan businesses Zoning permit reviews Eagan Convention and Visitor’s Bureau for meeting, hotel and hospitality assistance Not aware of Aware of and have not used Aware of and have used The National Business Survey™ Page 12 The National Employee Survey™ © 2009-2015 National Research Center, Inc. A majority of respondents indicated they were not planning to expand space in Eagan in the next year and nearly all respondents were not planning to move their business out of Eagan, decrease space in Eagan or close their business. Figure 5: Business Considerations for Next Year In the next year, is your business considering … Business owners and managers had the opportunity to assess their reliance on various sources for information about the City of Eagan and its services for businesses. The City website was selected as the most relied upon source with about half indicating it was a major source of information and an additional one-third indicating it was a minor source of information. Eagan Business News was next in the list with about 7 in 10 respondents indicating this was at least a minor source of information. Dakota County Chamber of Commerce communications and City of Eagan social media accounts were the least relied upon sources, but about half of respondents considered these to be at least minor sources. Figure 6: Information Sources Please indicate how much of a source, if at all, you consider each of the following to be for obtaining information about the City of Eagan and its services for businesses: 3% 3% 4% 10% 4% 6% 6% 14% 93% 91% 90% 76% Closing in Eagan and not relocating to another community? Decreasing space in Eagan? Moving your business out of Eagan and relocating to another community? Expanding space in Eagan? Yes Maybe No 9% 16% 25% 17% 27% 51% 45% 39% 38% 50% 43% 33% 45% 46% 37% 33% 30% 16% City of Eagan social media accounts (Facebook, Twitter, etc.) Dakota County Chamber of Commerce communications City staff (in-person or on the phone) Emails from the City of Eagan Eagan Business News City website (www.cityofeagan.com) Major source Minor source Not a source The National Business Survey™ Page 13 The National Employee Survey™ © 2009-2015 National Research Center, Inc. When asked about how often electrical power interruptions were a concern for business owners and managers, a majority indicated not at all. About 4 in 10 indicated that these interruptions were a concern once a month or less and only three percent of respondents experienced more frequent issues. Figure 7: Frequency of Electrical Power Interruptions How often, if at all, are electrical power interruptions a concern for your business in Eagan? 2 times a week or more 1% 2 – 4 times a month 2% Once a month or less 39% Not at all 58% Eagan, MN Resident and Business Comparisons 2017 The NCS is presented by NRC in collaboration with ICMA Eagan Overall Overall Quality of Life in Eagan excellent or good Businesses Residents 97% 95% 98% 92% Place to live Aspects of Eagan 96% 71% 92% 88% 87% 88% 96% 88% 94% 80% 94% 85% 91% 84% 94% 89% 98% Community Engagement Economy Education and Enrichment Recreation and Wellness Built environment Natural environment Mobility Safety Businesses Residents Safety Economy Community Focus Areas for Next Two Years Businesses Residents 91% 94% 90% 91% 93% 90% essential or very important Place to do business Living and Working in Eagan Location and Tenure Eagan as a Place to Work excellent or good Businesses Residents 99% 89% 95% 31% 32% Work in Eagan Workforce lives in Eagan 52% 68% Lived more than 10 years Operated more than 10 years Residents Businesses Recommend Eagan 97% 98% Recommend operating a business Recommend living Businesses Residents Eagan Leadership Value of services Overall confidence Welcoming involvement Overall direction 78% 74% 85% 79% 72% 73% Reputation of Eagan excellent or good Businesses Residents 95% 92% 94% 88% 84% Residents Businesses Trust in Eagan Customer Service Provided by Employees excellent or good Businesses Residents 92% 89% 91% Local Economy Overall Economic Health excellent or good Businesses Residents 94% 92% Aspects of Economy 93% 83% 87% 93% 73% 86% 96% 95% 87% Vibrant commercial area Quality of business and service establishments Shopping opportunities Employment opportunities Businesses Residents 90% Economic Development Businesses Residents 93% 88% excellent or good Job Eagan does at… 74% 81% 81% Retaining existing businesses Attracting new businesses Supporting or creating new jobs About To better understand the partnership between a government, its Businesses and its residents, The NBS and The NCS gauge these stakeholder opinions related to key issues of the community: The quality of broad community characteristics such as the economy, safety and recreation The community as a place to work and live The quality and responsiveness of community leadership The key focus areas for the community over the next two years Each stakeholder group provides a meaningful perspective and when ratings converge, evidence of a shared vision for the community emerges. When ratings contrast, a gap may exist between the stakeholder groups and their priorities for the communities; perhaps more public education or outreach may be needed or expectations may need clarification. Regardless of direction, large gaps in opinion deserve attention to better identify ways to align expectations, perceptions and values of residents, businesses and other key groups. Communities are more successful when stakeholders share a vision and mission. The National Citizen Survey™ (The NCS™) and The National Business Survey™ (The NBS™) © 2001-2015 National Research Center, Inc. Survey Responses by Survey Type The following pages contain the results of The NCS and The NBS where comparisons were available. Responses in the following tables show only the proportion of respondents giving a certain answer; for example, the percent of respondents who rated the quality of life as “excellent” or “good.” Table 1: Community Characteristics - General Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average The overall quality of life in Eagan 95% 97% 96% Eagan as a place to live 98% NA 98% Overall image or reputation of Eagan 92% 95% 94% Your neighborhood as a place to live 92% NA 92% Eagan as a place to raise children 95% NA 95% Eagan as a place to retire 72% 73% 73% Overall appearance of Eagan 96% 97% 96% Table 2: Community Characteristics - Safety Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Overall feeling of safety in Eagan 94% 98% 96% In your neighborhood during the day 98% NA 98% In Eagan's commercial areas during the day 97% 97% 97% In Eagan's commercial areas after dark NA 89% 89% Table 3: Community Characteristics - Mobility Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Overall ease of getting to the places you usually have to visit 88% 89% 89% Traffic flow on major streets 78% 80% 79% Amount of public parking in commercial areas NA 92% 92% Ease of travel by car in Eagan 87% 88% 88% Ease of travel by public transportation in Eagan 51% 49% 50% Ease of travel by bicycle in Eagan 70% 69% 70% Ease of walking in Eagan 81% 76% 79% Availability of paths and walking trails 88% 84% 86% Table 4: Community Characteristics - Natural Environment Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Quality of overall natural environment in Eagan 96% 94% 95% Air quality 93% 94% 93% Cleanliness of Eagan 94% 98% 96% Table 5: Community Characteristics - Built Environment Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Overall "built environment" of Eagan (including overall design, buildings, parks and transportation systems) 88% 84% 86% Public places where people want to spend time NA 2% 2% Variety of housing options 85% 79% 82% Availability of affordable quality housing 66% NA 66% Overall quality of new development in Eagan 87% NA 87% Overall quality of commercial development in Eagan NA 93% 93% Table 6: Community Characteristics - Economy Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Overall economic health of Eagan 92% 94% 93% Eagan as a place to work 89% 99% 95% Eagan as a place to do business NA 92% 92% Eagan as a place to visit 77% 88% 83% Employment opportunities 73% 87% 80% Shopping opportunities 93% 95% 94% Cost of living in Eagan 69% NA 69% Overall quality of business and service establishments in Eagan 87% 96% 91% Vibrant commercial area 83% 86% 85% Table 7: Community Characteristics - Recreation and Wellness Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Health and wellness opportunities in Eagan 87% 91% 89% Fitness opportunities (including exercise classes and paths or trails, etc.) 87% NA 87% Recreational opportunities 84% NA 84% Availability of affordable quality health care 78% NA 78% Availability of preventive health services 81% NA 81% Availability of affordable quality mental health care 71% NA 71% Table 8: Community Characteristics - Education and Enrichment Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Overall opportunities for education and enrichment 88% 85% 86% Availability of affordable quality child care/preschool 69% NA 69% K-12 education 91% NA 91% Adult educational opportunities 79% NA 79% Table 9: Community Characteristics - Community Engagement Percent rating positively (e.g., excellent/good, very/somewhat safe) The NCS Residents The NBS Businesses Average Opportunities to participate in social events and activities 71% NA 71% Opportunities to volunteer 79% NA 79% Opportunities to participate in community matters 70% 86% 78% Openness and acceptance of the community toward people of diverse backgrounds 72% NA 72% Neighborliness of residents in Eagan 69% NA 69% Table 10: Governance - General Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average The City of Eagan 95% 97% 96% The value of services for the taxes paid to Eagan 74% 78% 75% The overall direction that Eagan is taking 84% 88% 86% The job Eagan government does at welcoming citizen/business involvement 73% 72% 73% The job Eagan does informing businesses of community issues and values NA 70% 70% Overall confidence in Eagan government 79% 85% 82% The job Eagan does at retaining existing businesses NA 74% 74% The job Eagan does at attracting new businesses NA 81% 81% The job Eagan does at supporting or creating new jobs NA 81% 81% Overall customer service by Eagan employees 89% 92% 91% The Federal Government 52% 60% 55% Table 11: Governance - Safety Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average Police 93% 97% 95% Fire services 97% 100% 99% Ambulance or emergency medical services 94% NA 94% Crime prevention 90% 93% 91% Fire prevention and education 91% NA 91% Animal control 83% NA 83% Emergency preparedness (services that prepare the community for natural disasters or other emergency situations) NA 2% 2% Table 12: Governance - Mobility Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average Traffic enforcement 82% 91% 86% Street repair 71% 86% 78% Street cleaning 78% 90% 84% Street lighting 76% 92% 84% Snow removal 80% 94% 87% Sidewalk maintenance 77% 88% 82% Traffic signal timing 63% NA 63% Bus or transit services 67% 70% 68% Table 13: Governance - Natural Environment Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average Garbage collection 89% 92% 90% Recycling 86% 89% 87% Drinking water 77% NA 77% Preservation of natural areas such as open space and greenbelts 82% NA 82% Eagan open space 82% NA 82% Table 14: Governance - Built Environment Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average Storm drainage 87% 95% 91% Sewer services 91% NA 91% Power (electric) utility 88% 95% 91% Utility billing (water/sewer) 86% 95% 90% Land use, planning and zoning 81% 86% 84% Building permits and inspections NA 88% 88% Code enforcement (weeds, property maintenance, etc.) 76% 83% 79% Cable television (Comcast/Century Link) 55% NA 55% Table 15: Governance - Economy Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average Economic development 88% 93% 90% Table 16: Governance - Recreation and Wellness Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average City parks 94% NA 94% Recreation programs or classes 86% NA 86% Recreation facilities 88% NA 88% Table 17: Governance - Education and Enrichment Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average City-sponsored special events 81% 84% 82% Table 18: Governance - Community Engagement Percent rating positively (e.g., excellent/good) The NCS Residents The NBS Businesses Average Public information services 80% 82% 81% Table 19: Participation Percent rating positively (e.g., excellent/good, very/somewhat likely) The NCS Residents The NBS Businesses Average Sense of community 71% 80% 76% Recommend living/running a business in Eagan to someone who asks 98% 97% 98% Remain living/running a business in Eagan for the next five years 92% 97% 94% Table 20: Community Focus Areas Percent rating positively (e.g., essential/very important) The NCS Residents The NBS Businesses Average Overall feeling of safety in Eagan 94% 91% 93% Overall ease of getting to the places you usually have to visit 80% 88% 83% Quality of overall natural environment in Eagan 87% 84% 86% Overall "built environment" of Eagan (including overall design, buildings, parks and transportation systems) 77% 86% 81% Health and wellness opportunities in Eagan 68% 75% 71% Overall opportunities for education and enrichment 75% 77% 76% Overall economic health of Eagan 91% 90% 90% Sense of community 77% 83% 80% EAGAN BUSINESS SURVEY 2017 JANUARY 9, 2018 CITY OF EAGAN COMMUNICATIONS TEAM New this year – National Business Survey The National Business Survey™ is an assessment survey tool developed by the National Research Center to gather opinions of business owners and managers on a range of community issues, services and amenities as well as business and economic-specific questions. Survey approach •Survey period: October 6 through November 17, 2017 •Mailed invitation to online survey to all addressable Eagan businesses (n=1,855) •Two postcards and one letter (containing web link to survey questions) were sent over three weeks to all businesses; respondents had six weeks to complete the survey •All businesses (industrial, manufacturing, retail & restaurants, professional services, home-based, etc.) within Eagan were eligible to participate •12% response rate •±5% accuracy Construction 4% Finance, insurance, real estate, legal 13% Wholesale sales 5% Medical/ dental 12% Manufacturing 9% Printing/ publishing 7% Non-profit 5% Services 4% Restaurant/bar 5% Other 23% Transportation 4% Retail 9% Snapshot of respondents 15% 21% 18% 33% 13% Less than $100,00 $100,000 - $499,999 $500,000 - $999,999 $1,000,000 - $4,999,999 $5,000,000 or more ANNUAL GROSS REVENUE 6-10 years 21% 1-5 years 9% Less than 1 year 1% More than 10 years 68% YEARS IN EAGAN 4 or fewer 37% 5 to 10 28% 11 to 50 26% Over 50 9% EMPLOYEES IN EAGAN Yes 18% No 82% HOME BASED BUSINESS Snapshot of respondents BUSINESSES VALUE EAGAN AS A PLACE TO DO BUSINESS AND FEEL POSITIVELY ABOUT THE BUSINESS CLIMATE. Good 48% Fair 7% Poor, 1% Excellent 44% 92% of business owners and managers rated Eagan as an excellent or good place to do business. Would you recommend operating a business in Eagan? • 97% very or somewhat likely Do you plan to keep your business in Eagan for the next five years? • 97% very or somewhat likely BUSINESS OWNERS DO NOT ANTICIPATE A SPACE OR LOCATION CHANGE IN THE NEXT YEAR BUT ARE EXPERIENCING A SHORTAGE OF QUALIFIED APPLICANTS. In the next year, is your business considering … No, 76% No, 90% No, 91% No, 93% 14% 6% 6% 4% 10% 4% 3% 3% Expanding space in Eagan? Moving to another community? Decreasing space in Eagan? Closing in Eagan and not relocating? No Maybe Yes About half of survey respondents planned to hire within the next 6 to 12 months… Not Sure 27% No 25% Yes 48% …for these types of positions Technically skilled 47% Administratively skilled 32% Unskilled administrative 15% Unskilled labor 40% What is the single most serious issue facing your business? (open-ended responses) Staffing •Finding skilled employees w/ manufacturing background •Recruiting new employees •Finding high quality technical candidates for positions Transportation •Better access to public transportation •Traffic flow at nearby intersections •Geographic access to qualified employees Financial issues •Maintaining profitable work •Financing/cash flow Space •Finding suitable office for a small business •We need a larger facility What role should the City play in helping to solve that issue? Keep bringing in others to increase the base of tax payers Facilitate hiring & recruitment options for businesses Provide good infrastructure and sound management of the budget Better mass transit to our facility Allow extra signage where businesses see fit Provide good schools & homes to encourage skilled people to live/work here Reduce property tax burden Create more opportunities for fiber, less of a big buy in BUSINESSES APPRECIATE THE SAME COMMUNITY CHARACTERISTICS AS OUR RESIDENTS, SUCH AS EAGAN’S NATURAL AMBIENCE, SERVICES AND AMENITIES. Good 48% Fair 3% Poor 1% Excellent 49% 97% of business respondents felt Eagan had an excellent or good quality of life. Other community characteristic ratings 99% 88% 73% 95% 97% Place to work Place to visit Place to retire Overall image Overall appearance Higher than national benchmark Similar to national benchmark Overall feeling of safety •98% excellent or good Safe in commercial areas during the day •97% excellent or good Safe in commercial areas after dark •89% excellent or good Business owners identified Safety and Economy as priorities for Eagan in the coming two years. Overall economic health 94% excellent or good Shopping opportunities 95% excellent or good Vibrant commercial area 86% excellent or good Quality of business establishments 96% excellent or good Economic development 93% excellent or good Retaining existing businesses 74% excellent or good Attracting new businesses 81% excellent or good Supporting or creating new jobs 81% excellent or good Focus areas for the next two years align between businesses & residents Safety 93% 91% 94% Economy 90% 90% 91% Businesses Residents % of respondents rating essential or very important EAGAN’S LEADERSHIP, GOVERNANCE & CITY SERVICES ARE RESPECTED (AND HIGHLY RATED) BY BUSINESSES. Eagan government performance ratings 78% 88% 85% 86% 92% Value of services for taxes paid Overall direction Eagan is taking Confidence in City government Acting in the best interest of Eagan Customer service by employees How would you rate the quality of the services provided by the City of Eagan? Good 50% Fair 2% Poor 1% Excellent 47% For comparison Federal Government 60% State of Minnesota 67% Ratings of specific City services 100% 97% 95% 86% 84% 84% Fire Police Storm drainage Street repair Snow removal City-sponsored special events What is the single most important improvement the City of Eagan could make to its services for business? Three main themes emerged from the responses: Support for small businesses Transportation Communication and awareness of programs Communication and awareness “Make sure the people who might want to know about city developments have easy ways of accessing that information” “Communication of activities and opportunities to businesses” “If there are truly services available for assisting small businesses, do a better job of letting us know what they are” Good 51% Fair 21% Poor 2% Excellent 19% Rating for the job Eagan does informing businesses of community issues and values Use and Awareness of Services Not aware of, 44% Not aware of, 51% Not aware of, 64% Not aware of, 68% Not aware of, 72% Not aware of, 86% 45% 37% 30% 27% 21% 13% 11% 12% 6% 5% 7% Eagan Convention & Visitors Bureau Zoning permit reviews AccessEagan Help identifying parcels/buildings for sale Pre-application meetings with Planning staff Open to Business program Not aware of Aware of and have not used Aware of and have used 1% Sources of information 51% 27% 17% 25% 16% 9% 33% 43% 50% 38% 39% 45% 16% 30% 33% 37% 46% 45% City website Eagan Business News City email subscriptions City staff (in-person or on phone) Chamber communications City of Eagan social media Major source Minor source Not a source Transportation “Keep the roads in good shape for people to travel easily to their desired location” “Relieve traffic congestion through road improvements” “Public transportation” Good 51% Fair 21% Poor 2% Excellent 19% Rating of bus or transit service Other support for small business “Work together— Help with small business taxes, wages & promotion of small businesses to local large companies” “Make sure the high school has programs to get kids experience in this area” “Affordable assistance to small business (i.e. offset cost of AccessEagan)” “Teach employment culture in public schools” “High School or District 196 programs for PT/FT work study” Eagan is a great community for businesses •Although the benchmark comparison set for the business survey is much smaller than for the residential survey, Eagan ranked #1 in the following areas: Place to do business Overall image or reputation Traffic flow on major streets Overall “built environment” Overall economic health Vibrant commercial areas Quality of services provided by city Place to work Overall feeling of safety Quality of natural environment Quality of commercial development Overall quality of businesses Sense of community Value of services for taxes paid “KEEP GROWING— IF EAGAN CONTINUES TO DEVELOP ECONOMICALLY THAT WILL HAVE A POSITIVE SPILLOVER EFFECT ON MY BUSINESS.” QUESTIONS?