03/12/1985 - City Council Special! F&Q
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AGENDA
SPECIAL CITY COUNCIL MEETING
MARCH 12, 1985
7:00 P.M.
EAGAN MUNICIPAL CENTER BUILDING
I. Can American Consideration For
Tax Increment/Interest Rate Reduction
II. Transition Re: Director of Public Works
Position
III. Personnel
IV. RFP For Banking Services
V. M.B.O. Update
VI. Update
VII. Other
VIII. Adjournment
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• MEMO TO: HONORABLE MAYOR BLOMQUIST AND MEMBERS OF THE CITY COUNCIL
FROM: CITY ADMINISTRATOR HEDGES
DATE: MARCH 8, 1985
SUBJECT: SPECIAL CITY COUNCIL MEETING
A special City Council meeting was set for Tuesday, March 12,
1985, at 7:00 p.m. The purpose of the meeting is to allow a brief
presentation by the Can American group regarding a request for tax
increment financing or what is more commonly referred to as the
interest rate reduction program. Also, there are some workshop
related issues such as the transition for the Director of Public
Works, some personnel matters, a discussion of the RFP for banking
services, the M.B.O. update and a provision on the agenda for
update if time permits.
CAN AMERICAN CONSIDERATION FOR TAX INCREMENT/INTEREST RATE REDUCTION
Mark Parranto, on behalf of the Can American group, has requested
time at the special City Council meeting to discuss an application
for interest rate reduction financing to help assist the Can
American project. As a matter of update, the City Council has
• previously granted multi -family mortgage revenue bond financing to
the Can American group in the amount of $12,500,000 to help
finance the construction of an approximately 260 -unit rental
housing development to be located at the northwest corner of Cedar
Avenue and Cliff Road. The project is entitled Cinnamon Ridge
Limited Partnership.
During the month of December, the City received an application for
an interest rate reduction program from the Can American Reality
Corporation for this same project. The application was completed
according to the City's format and approved guidelines. A copy of
the application and support documentation were presented to the
City Council as a part of the December 18 City Council packet.
Since the information was presented some three months ago, a new
copy is included for your review.
The Can American group is reluctant to expend the dollars and time
that is required for preparing all documentation for an interest
rate reduction program without some indication as to whether the
City Council may support this type of financing. Since this
interest rate reduction application is the first received by the
City and the cost for preparation of all documentation is
expensive, Can American Reality Corporation group would like an
opportunity to discuss this item with the City Council. Mayor
Blomquist indicated at the meeting that their presentation should
• be limited to 15 minutes, followed by questions the City Council
might have regarding the application. Those procedural instruc-
tions were given to Mark Parranto on behalf of the applicant.
This is not a public hearing and there can be no formal action
taken by the City Council.
MEMO
MARCH 8, 1985
PAGE 2
TRANSITION REGARDING DIRECTOR OF PUBLIC WORKS POSITION •
The City Administrator would like to follow up with a few comments
regarding the transition program for replacement of the Director
of •Public Works that was outlined after the last City Council
meeting. It is not anticipated that a great deal of time is
necessary on this item.
PERSONNEL
The City Administrator would like to discuss the employment
status of two (2) employees. A documentation will be shared
with the City Council in addition to two (2) memorandums of
employment that reveal a number of employment conditions pertaining
directly to their current employment status. These memorandums
were reviewed in detail with our City Attorney and a labor law
specialist, Mr. John Rozack. Tom Colbert will be present to
aid in the discussion and/or answer any questions regarding
the transition and the personnel issue.
The City Administrator .would like to discuss a car allowance
rate for the City Planner and vacation accrual for department
heads. Both are policy issues and will require some brief expla-
nation by the City Administrator on Tuesday.
RFP FOR BANKING SERVICES •
One of the objectives outlined in the 1984 NBO was to implement
an RFP for banking services. A draft was completed by the Director
of Finance, reviewed by the City Administrator and is ready
for consideration by the City Council. The RFP is extremely
technical and lengthy and will not be completed in the typing
pool until late Monday. The City Administrator has asked the
Director of Finance to be present at the special City Council
meeting and provide a brief summary of the RFP so the City Council
is at least familiar with the type of services the City is request-
ing for its banking needs. The RFP's will be available for
distribution at the meeting on Tuesday.
M.B.O. UPDATE
Enclosed is a copy of the original M.B.O. that was established
February 28 of 1984 and, subsequently, amended July 16 and November
13 of 1984. It was the recommendation of the City Council at
the November 13 meeting that a new M.B.O. listing be prepared
eliminating all those objectives that were completed during
1983-1984. Therfore, a new sheet was prepared and is enclosed
for your review.
Please review the list prior to the Tuesday evening meeting
and add any objectives you feel are desirable for City Council
consideration.
UPDATF.
The City Administrator would like to provide an update to the
City Council on 1) airport noise, 2) City Celebration Committee
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• MARCH 8, 1985
PAGE 3
3) pending legislation, 4) other, recognizing "10:00 p.m." curfew
for.special City Council meetings. The items listed under "Update"
will be discussed if time permits.
Enclosed in each of your special City Council meeting packets
is a copy of the following:
1) MASAC agenda and minutes.
2) Update on legislation that is monitored by the AMM.
3) Information from 'the MLC regarding the local government
aid distribution policy.
City Administrator
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Agenda Information Memo
• December 18, 1984 City Council Meeting
Page Thirty -Three
INTEREST RATE REDUCTION/CINNAMON RIDGE
A. Consideration of an Interest Rate Reduction Application
for Cinnamon Ridge (Can -America Realty Corporation) --The City
of Eagan has received a check in the amount of $500 and an applica-
tion for an interest rate reduction program from the Can -American
Realty Corporation for the Cinnamon Ridge multifamily housing
project. The application was completed according to the City's
format and recently approved guidelines. Because this application
is a first, the City Administrator has provided a copy of the
application and support documentation for review by the City
Council. In the future, to respect the streamlining and quantity
C of information, these types of applications will be summarized
for Council review. For information on the interest rate reduction
program and a copy of the application, refer to pages 1-7& through
IZA-7 . Since this item is technically reviewed by the HRA,
it will be necessary for the City Council to suspend the City
Council meeting and convene as an HRA to deal with this application.
The City Administrator or referenced as the Executive Director
• of the HRA is somewhat unclear as to the procedure for an interest
rate reduction program and has requested information from bond
counsel, Mr. Stan Kehl, that will be helpful in providing a
step by step analysis of the HRA's action if an interest rate
reduction program is to be approved for Can -American.
ACTION TO BE CONSIDERED ON THIS ITEM: The Executive Director
will review the action with Mr. Stan Kehl and the City Council
will be advised of the proper steps as a part of the Administrative
Agenda on Monday or during discussion of the HRA business at
the City Council meeting on Tuesday.
Special Note: It would be appropriate, following discussion
and action on the HRA business, that the HRA meeting be adjourned
and the City Council meeting reconvened.
s/Thomas L. Hedges
City Administrator
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CITY OF EAGAN, MINNESOTA
Interest Rate Reduction Program Application
1. Name of Project
CINNAMON RIDGE
Date December 10, 1984
Project Address. THE NORTHEAST CORNER OF CEDAR AVE. AND CLIFF ROAD
2. Applicant Name CAN—AMERICAN REALTY CORPORATION
C Address 1117 MARQUETTE AVENUE, SUITE 200. MPLS., MN 554ni
Contact Person BRYAN L. WEBER
Telephone Numbers 332-5544 (work)
3. Form of Business (check one)
• Sole Proprietorship Partnership Corporation x
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If partnership, include names of partners and ownership interest.
N/A
4. Partnership's Legal Counsel (firm name)
Kaplan, Stranp-is & Kaplan. P.A.
Address 555Pillsbur Center
-200 South Sixth Street
MinneaDOUS. MN 55402
Contact Person David Karan
Telephone Number 375-1138
-1- 176
5. Experience in multifamily construction and/or rehabilitation. •
CITY PROJECT NAME 'F UNITS
Minneapolis Symphony Place 250
Minneapolis Seven Corners Ants. 248
Roseville Coventry 196
Fridlev Village Green 196
Golden Valley Dover Hill 214
Minnetonka Elmbrooke 46
6. Project Description: Cinnamon Ridge consists of 260 garden i
apartments in 11 buildings which each contain 24 units The
units are designed to give them a townhouse feel with many
separate entries, bay windows and brick chimneys The exterior
will be a combination of brick and no -maintenance vinyl sidin•
Each unit will have a washer and dryer as well a
refirgerator, dishwasher and disposal. The units on the top
loot (1/3) will have fireplaces.
7. The total cost of the project will be approximately $_13,18 5,000
8. Attach a site map showing zoning of all adjacent property.
9. Are there any unusual site conditions requiring excessive site
preparation activities prior to construction?
No x Yes If yes, specify:
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-2- X7-7
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10. Proposed monthly
rent structure with interest.rate reduction
assistance:
S
Efficiency
g 485
One Bedroom
$ 585
Two Bedroom
g
Three Bedroom
Proposed monthly
rent structure without interest rate reduction
assistance:
$
Efficiency
g 535
One Bedroom
C.
$ 635
Two Bedroom
$
Three Bedroom
11. Is this project
to be financed with the City's tax-exempt bonds?
No Yes
x
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If yes, attach one copy of your Multifamily Housing Bond Program
Request.
..
If no, complete
sections 12 and 13.
12. Source and Use of Funds - Revised breakdown attached.
Source
.59
Type and amount of financing 10,550,000 - tax exempt bonds
Developer Equity 2,635,000
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Other
Total
Use
Construction Costs 9,960,000
Other 3,225,000 (architect,
Total
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13,185,000
land,financing, etc.
13,185,000
1-7S
13. Appraised value of project $ _ •
Source of Appraisal (check one)
MAI Other
If other, identify some source and method of determining appraised
value.
Based on discussions with appraisers working on a
slightly lower quality project in the area, we have
been advised of a minimum value of $50,000 a unit -
which in our case equals 13 million.
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14. Attach a one page summary describing why you feel your project needs •
tax increment assistance.
Please remit your check in the amount of $500 payable to the City of
Eagan, to the attention of:
Ms. Marcia A. Cohodes
MILLER b SCHROEDER MUNICIPALS, INC.
7900 Xerxes Avenue South
Suite 2300
Minneapolis, Minnesota 55431
Include two copies of this application with your check. •
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Can -American Realty has planned from the outset a top-
quality, yet moderate market -rate, rental project called Cinnamon
Ridge Apartments. The visibility of our site to major roadways
and its close proximity to the single-family homes of the
Cinnamon Ridge development area has made us particularly
sensitive to listening and satisfying the concerns of both City
planners and surrounding neighbors. As such, after meeting with
interested parties, we have designed an apartment project of
small clusters of rental residential units that blends with the
community, and that has won the stated support of local
residents. The design features and considerations which we have
incorporated at Cinnamon Ridge makes it necessary to seek tax
assistance under existing State and local law from the City of
Eagan.
Current market -rate rents affordable to young and/or growing
professional households in the Eagan market, as verified by
mortgage underwriters and certified appraisers, would not support
the rental project we propose on a basis that would make the
project work for Can -American. Rather than design a project
which centers around a large block structure of 75 to 100+ units
per building, we have designed a project of eleven smaller
• buildings that look and feel like the surrounding neighborhood.
Each building utilizes a mix of brick, wood and vinyl siding
building materials combined in an exterior design of varied roof
lines, decorative windows, balconies and brick chimneys. These
design amenities are more costly than the single, monolithic
design block building, but are consistent with the quality of
market -rate rental product developed by Can -American and
necessary to meet the neighbors concerns.
(' In addition, we believe the quality level of our project and
the affordable market -rate rents (maintained by tax -increment
assistance) will appeal to professional households of individuals
that will enhance the community and ultimately settle in the City
of Eagan. By assisting our project with tax increment financing,
the City will help Can -American finance and develop a rental
project that will increase the availability of rental housing for
moderate income families in the City, and will add to the City
property tax base in the near and Long term.
Attached are letters from the general contractor and
architect that detail the above design amenities. Can -American
has committed significant time and investment to Cinnamon Ridge
Apartments, and we look forward to developing the project to
completion with the City's assistance.
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`.^/insor,'FaricyArchitects,Inc. Suite 375, 28 West Fifth Street
Saint Paul, Minnesota 55102
612 . 227. 0655
14 November 1984
Can -American Realty Corporation
1.117 Marquette Avenue, Suite #200
Minneapolis, Minnesota 55403-2457
Attn: Bryan Weber
RE: Cinnamon Ridge Housing
W/F Project No. 7504-840-7
Dear Bryan:
Archilecls
Interior Designers
Planners
We feel the following elements and features of the Cinnamon Ridge project make it
stand above other typical rental housing projects:
Site Design
1. A new public street (at the Owner's expense) has been included
in the site design for the project and serves to route traffic from
the project directly to Cliff Road. This new street (i.e., Slater
Road) was designed with a large curve (rather than a direct route
through the parcel) to help in buffering the project from the
adjacent Cedar Avenue.
2. The site design for the apartments features 4 clusters of apart-
ments, each with 2 or 3 buildings. The clusters are designed
with separate access and parking areas, rather than having one
large central parking lot. Therefore, the visible size of the parking
areas is considerably reduced and the project relates more closely
to the adjacent neighborhood.
Building Design
1. The 2-1/2 story walk-up buildings have been designed with
numerous offsets in the facades, vertical steps in each building
and sloped roofs to give an appearance of smaller scaled structures
(i.e., townhouse design). This design technique was utilized to
make the buildings (and project) much more compatible with
the adjacent residential neighborhood.
2. The buildings feature additional details (i.e., bay windows, arched
windows at the entries, balconies or patios at every unit, etc.)
which help relate the project to the adjacent smaller residen-
tial units.
3. Similarly, the use of brick on portions of the exterior (i.e.,
chimneys, end walls, building offsets) helps the scale of the
building. The project is not presented as a large "all brick" housing
project, but is not all wood siding either. The exterior materials
(brick, vinyl siding, aluminum windows) are maintenance free
and thus assure the project will remain attractive.
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. Ainsor/FaricyArchitects,Inc.
Building Design (Continued)
Mr. Bryan Weber
Can -American Realty Corporation
14 November 1984
Page No. 2
4. Entry into all buildings is controlled with a security system,
however, unlike many rental projects, this is not coupled with
long corridors and access to all units. Only 12 apartment units
are accessible at each entry, thus providing a smaller scale and
more privacy for the tenants.
5. The complex, although comprised of walk-up apartments, will
feature a 1,150 sq. ft. community room and a 2,150 sq. ft. exercise
room with sauna, whirlpool and locker rooms, similar to those
provided in larger rental projects.
Unit Design
1. One of the most significant features related to the design of
the apartment units is their size as compared to many typical
rental apartments. One bedroom units are approximately 800
sq. ft. (i.e., 792), two bedroom units are approximately 1,100
sq. ft. (i.e., 1,070), and the split two bedroom unit is 1,160 sq.
ft. The units thus offer an adequate and flexible space for furni-
ture layout.
2. The finishes utilized throughout the apartments are the same
as those typically utilized in "for sale" condominium projects
and include:
- Wood baseboard, trim and doors in a natural finish.
-- Carpeted living, dining and bedroom areas.
- Sheet vinyl flooring in all kitchens and baths.
-Ceramic tile walls around all bathtubs.
3. The units are designed so each is equipped with an individual
forced air heating and air conditioning system, and a hot water
heater.
4. All apartment units on the top floors of the buildings (i.e., 88
units) will have wood burning fireplaces.
5. Appliances included in each apartment are also the same as those
typically provided in condominium type projects. Kitchens are
equipped with a disposal, dishwasher, frost -free refrigerator/
freezer, 30" range, and range hood. In addition, each unit is
also equipped with a washer and dryer.
Sincerely, `
4ad.
l,C�� AslA Leer, AIA
Senior Associate
DJL/jmd
cc: Pete Dommino - Frana & Sons Construction
Eric Galatz - Winsor/Faricy Architects, Inc.
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FRANA AND SONS INC.
GENERAL CONTRACTORS
7490 MARKET PLACE DRIVE • EDEN PRAIRIE, MINNESOTA 55344 (612) 941-0282
November 27, 1984
Can -American Realty Corporation
1117 Marquette Avenue
Minneapolis, Minnesota 55403
Attn: Brian Weber
Re: Cinnamon Ridge Housing
Dear Brian:
Per our meeting of November 9, 1984 I have priced up using vinyl siding
in lieu of hardboard siding on the project. The cost change to substitute the •
Restoration Series Three vinyl siding by Wolverine Building Products in lieu of
the hardboard siding would be a net deduct of $20,000.00 (Twenty thousand dollars
and no cents). The design would include all of the wood trim and soffits painted
as shown on the drawings. If we were to metal wrap all of the trim and use metal
soffits and fascia, the net change to the project would be approximately an add
of $40,000.00 (Forty thousand dollars and no cents). The details of the soffits,
fascia trim, and windows would have to be discussed further before we can final-
ize a price add for metal wrapping all of the exterior.
We also discussed the cost difference between this project and a 3 -story
underground garage 90 -unit building. The cost per unit for this project is .
approximately $37,725.00. The cost per unit for a 90 -unit building is approxi-
mately $33,225.00. The total approximate difference in construction cost than
would be $1,170,000.00.
The following is a breakdown of the cost difference in the project.
PER UNIT
TOTAL
Roadway
175.00
45,000
Brick work (other project was all vinyl siding
with painted wood trim)
1,500.00
390,000
Fireplaces
345.00
90,000
Individual washer and dryer
750.00
195,000
Indiiidual gas fired heating and central air
conditioning
1,215.00
316,000
Conc ete, framing, windows and doors (This
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number includes the cost of the elevator
and fire sprinkler system required in the
90 -unit building)
515.00
134,000
TOTT ADDS
4,500.00
1,170,000
1�'3
november 27, 1984
® Page Two
These comparisons are based on a 212 unit project bid approximately the
same time as the Cinnamon Ridge Project. These numbers are ror comparison
purposes only.
I' you have any Further questions, please do not hesitate to call.
Sincerely,
Peter J. Donnino
Project Coordinator
CFrana and Sons, Inc.
CC: Don Leier
Winson Faricv Architects, Inc.
28 :•lest 5th Street - Suite 375
St. Paul, Minnesota 55102
PJD:lmm
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CIWA.uON RIDGE APaRT.=gTS-
Total Project and Financing Costs
November 12, 1984
Hard Construction Costs:
Frana Bid (9/5/84 supplied to City of Eagan) $ 9,740,000
Add Gas/Heat System (estimate attached) 220.000
Total Project Costs $ 9,960,000
Land Price 690,000
Architect, Engineering Fees (10/22/84 bid) 275,000 C
Insurance, Taxes during Construction 50,000
Marketing, Furniture S Fixtures 75,000
Legal, Title, Recording 50,000
Finance Costs During Construction:
10.5% Interest 1,102,500 •
2.0% Letter of Credit 210,000
1.0% Loan Origination Fee 105,000
3.5% Bond Underwriting Fees 367,500 1,785,000
Operating Deficit Guaranteed and Paid by Developer 300,000
Total Project Costs $13,185,000
80% Tax -Exempt Bond Issue $10,550,000
20' Developer Equity $ 2,635,000
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ZONING
NORTH
P.D. 81-2, Zachman Homes. This is an area of multi -family
dwellings consisting basically of apartments in the carriage
home style. Further North is the River Hills area, a single
family development.
EAST
The eastern boundary of the property is the Cedar Avenue
Freeway. Immediately East of the Freeway is the Mari Acres
Community Shopping area. Presently, an office building and
a McDonald's have been built.
• SOUTH
The entire area South of Cliff Road is zoned P.D. 81-3, the
Winkler Jackson area. The land adjacent to Cliff Road is
zoned for commercial uses., Further South, the intended use
becomes multi -family, both townhouse and apartment. There
is a single family development underway at the southern edge
of the Planned Development.
WEST
�tr P.D. 81-2, Zachman Homes. This area is primarily duplex,
owner -occupied and single family cluster homes. Further
West is the City of Burnsville. The area is a single family
development known as South River Hills.
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Zoning Reap
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A REVISED M.B.O. SHEET WILL BE
INCLUDED ON MONDAY
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AGENDA
METROPOLITAN AIRCRAFT SOUND ABATEMENT COUNCIL
GENERAL MEETING
February 26, 1985
7:30 P.M.
6040 28th Avenue So., Minneapolis, MN
1. Call to Order, Roll Call
2. Approval of Minutes of General Meeting on January 22, 1985
3. Introduction of Invited Guests, and Receipt of Communications
4. Technical Advisor's Preferential Runway System Utilization Report and
Complaint Summary Report
5. Persons Wishing to Address the Council
6. Minutes of Operations Committee Meetings: February 7 and 21, 1985
7. Monthly Complaint Report: Method of Tabulation
8. Minutes of Executive Committee: February 4, 1985
9• Noise Abatement Plan Yearly Report: Discussion
10. Report of MASAC Representative to MAC Meeting on February 19, 1985
11. Other Items Not on Agenda
12. Next Meeting Date: March 26, 1985
13. Adjournment
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MINUTES
METROPOLITAN AIRCRAFT SOUND ABATEMENT COUNCIL
Call to Order, Roll Call.
GENERAL MEETING
7:30 P.M.
January 22, 1985
Minneapolis, Minnesota
• Chairman Walter Rockenstein called the meeting to order at 7:30 p.m. and
asked the secretary to call the roll. The following members were in
attendance:
Ben Griggs (R)
Northwest Airlines
Bob Johnson (R)
Republic Airlines
Jack Spalding (A)
United Airlines
Gary White (A)
Midway Airlines
Rich Kidwell (R)
Western Airlines
James McLaughlin (A)
Air Line Pilots Association
Ron Glaub (R)
Minnesota Business Aircraft Association
Jeff Hamiel (R)
Metropolitan Airports Commission
Art Tomes (A)
Minneapolis Chamber of Commerce
Walter Rockenstein (R)
City of Minneapolis
Roylene Champeaux (R)
City of Minneapolis
Kristin Clinton (A)
City of Minneapolis
Scott Bunin (R)
City of St. Paul
Eugene Bohmert (R)
City of St. Paul
Lloyd Wickstrom (A)
City of St. Paul
Donald Priebe (R)
City of Richfield
Donald Fondrick (R)
City of Richfield
Robert Mood (R)
City of Bloomington
Larry Shaughnessy (R)
City of Mendota Heights
Tom Baker (R)
City of Eagan
Mike Brucciani (R)
City of Burnsville
Bob O'Brien (A)
City of Burnsville
Juan Rivas (A)
City of Burnsville
• Martin Silvi (R)
City of Inver Grove Heights
MASAC Minutes
Advisors
Bob Botcher
Alan Lindquist
Commissioner Nancy Witta
Darrell Weslander
Joan Vandersloot
Guests
Eileen Scully
Judy Uban
Anne Storey
Dave Kelso
Louis Hoffman
Diana Peterson
Sue Anderson
Floyd Anderson
Larry Hartman
J. K. Nelson
Douglas Koehntop
Don and Olive Witz
Chauncey Case
Jim Aswegan
Martin Kirsch
George Hall
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January 22, 1985 i
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Federal Aviation Administration
Federal Aviation Administration
Metropolitan Airports Commission
Technical Advisor
Secretary
Minneapolis
Minneapolis
Minneapolis
Minnesota Pollution Control Agency
Minneapolis
Minneapolis
Minneapolis
Minneapolis
Minneapolis
Bloomington
St. Anthony Village
Richfield
Metropolitan Council
Minnesota Department of Transportation
Richfield •
2. Approval of Minutes of General Meeting on December 4, 1984.
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The December 4, 1984 minutes were approved as presented.
Introduction of Invited Guests, and Receipt of Communications.
Walter Rockenstein introduced Donald Fondrick from the City of Richfield who
is replacing Martin Kirsch as.representative to MASAC. Also mentioned was the
new alternate representative from Western Airlines, David Reveling, District
Sales Manager.
ical Advisor's Preferential Runway System Util
The reports for the months of November and December, 1984, were presented by
Darrell Weslander. Some discussion followed regarding the way in which the
noise complaints are received, and it was the consenses that the issue be
further discussed at the February meeting.
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MASAC•Minutes -3-
5. Persons Wishing to Address the Council.
No one wished to address the council.
6. Aircraft Noise Profiles, Jim Aswegan, MN DOT.
January 22, 1985
Walter Rockenstein introduced Jim Aswegan who has been employed by MN DOT for
15 years, 12 years of which have been in acoustical research. He has served
as technical advisor to the Metropolitan Council and is currently a member of
the Noise Policy Review Committee.
Jim Aswegan, with the aid of a slide presentation, used a variety of charts to
show the difference in sound of the various aircraft, and elaborated on the
future with the new generation, Stage III equipment. The affects of the quieter
aircraft will be most noticeable as the noise will be contained on the airport
property itself. Questions and answers followed the presentation.
7. South Minneapolis Airport Action Council: Floyd Anderson.
Dr. Floyd Anderson, a resident of Minneapolis and president of the South
Minneapolis Airport Action Council (SMAAC), made a presentation regarding noise
and its affect on the citizens in the community. He referred to a proposal
presented to the Metropolitan Airports Commission (MAC) and the Federal Aviation
Administration (FAA) and 'wished some assistance in agreement.
rt Johnson
motion passes unanimously.
8. Noise Abatement Plan Yearly Report.
Baker that
meet
Jeff Hamiel briefly reviewed the Report and the Minnesota Pollution Control
Agency's response to it. In addition, he referred to the MAC's letter in reply
to the MPCA critique.
9. Other Items Not on Agenda.
Darrell Weslander referred to the Position Paper proposed by the Burnsville
Aircraft Noise Committee (BAN) which was included in the January package. It was
suggested that the proposal be referred to the Operations Committee for review.
Discussion followed regarding the 1800 turn which was discontinued January 1, 1985•
The 1800 turn which is recommendation F. of the Noise Abatement Operations Plan
was referred to the Operations Committee of MASAC to begin the study and recom-
mendation process. The steps concerning this process are as follows: 1) the
Operations Committee (MASAC) will investigate the affects of the departure heading
and subsequently recommend action to MASAC; 2) MASAC will review and recommend
action to the Operations and Environmental Committee of the Commission; 3) the
Operations and Environmental Committee will present the findings to the full
Commission, who will then present the recommended action to the FAA. The MASAC
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MASAC Minutes -4- January 22, 1.985•
Operations Committee meetings, MASAC meetings and the Operations and •
Environmental Committee meeting are open to the public and comments' will be
received.
Asan update, Walter Rockenstein commented on Stage 1 aircraft and the very
limited exemptions made by Congress, and the FAA. It appears that this subject
has become a topic of major litigation. Those airlines not granted the exemption
have filed discrimination suits; some airlines that have fleets in compliance
have filed counter suits.
10. Report of MASAC Representative to MAC Meetings on December 17, 1984, and
nua
Scott Bunin was MASAC's representative at both of the above-mentioned meetings.
The relevant issues of the January 21 meeting were the yearly report, previously
presented by Jeff Hamiel, and the matter of differential landing fees.
Commissioner Del Calzo believes a decision should be made regarding this issue,
and it was referred to the Operations and Environmental Committee of the
Commission.
11. Establish Next Meeting Date.
The next MASAC meeting is scheduled for February 26, 1985•
In an effort to reduce agenda items at upcoming MASAC meetings, dates for future •
1985 meetings are as follows:
March 26
April 23
May 28
June 25
July 23
August 27
September 24
October 22
December 3
12. Adjournment.
The meeting was adjourned at 10:15 P.m.
Respectfully submitted:
Joan Vandersloot
MASAC Secretary
•
198
Wold-Chamber)M
43
Run -ups
2
Miscellaneous
3
1985
48
Wold-Chamberlaln Field
132
Run -ups
1
Miscellaneous
5
Total
138
Miscellaneous complaints
In-
cludes helicopters and secon-
dary airports.
3
Anoka 2
Helicopters 3
MINNEAPOLIS
tro6S1oM�l
28 39% ^C�
11% 3
ArA
1 "t•
ORICHFIELD/
BLOOMINGTON
HOURLY PERCENTAGE USE OF RUNWAYS
O
O
PAUL/HIGHLAND PARK
MENDOTA HEIGHTS/'
EAGAN
OPERATIONS SUMMARY -
Itinerant:
Air Carrier
Commuter
General Aviation
Military
MINNEAPOLIS/ST. PAUL INTERNATIONAL AIRPORT Local:
Civil
Military
JANUARY, 1985 Total Average Daily Opns
1985 / 1984
631 512
82 149
158 16o
20 13
23 32
0 D
914 / 865
CONSOLIDATED SCHEDULE (AC) _752/650.
137/12 of these are 3rd level carriers
utilizing prop aircraft.
TO
LOG
Apple Valley
21
0
Bloomington.
5
1
Burnsville
34
0
Cottage Grove
0
1
Eagan
16
5
Inver Grove Heights
5
3
Mendota Heights
4
0
Minneapolis.
23
2
Richfield
3
0
St. Louis Park
1
0
St. Paul
7
0
West St. Paul
0
1
119
13
MINNEAPOLIS
tro6S1oM�l
28 39% ^C�
11% 3
ArA
1 "t•
ORICHFIELD/
BLOOMINGTON
HOURLY PERCENTAGE USE OF RUNWAYS
O
O
PAUL/HIGHLAND PARK
MENDOTA HEIGHTS/'
EAGAN
OPERATIONS SUMMARY -
Itinerant:
Air Carrier
Commuter
General Aviation
Military
MINNEAPOLIS/ST. PAUL INTERNATIONAL AIRPORT Local:
Civil
Military
JANUARY, 1985 Total Average Daily Opns
1985 / 1984
631 512
82 149
158 16o
20 13
23 32
0 D
914 / 865
CONSOLIDATED SCHEDULE (AC) _752/650.
137/12 of these are 3rd level carriers
utilizing prop aircraft.
Date
Number of
Complaints
Excessive
Noise
MINNEAPOLIS -ST. PAUL INTERNATIONAL COMPLAINT
Nighttime
Structural Activity Restricted
Disturbance Interruption Hours Run -ups
RECORD
Danger
Perceived
Low
Flying
Month of
Secondary
Airports
JANUARY, 1985
Miscellaneous
1
6
5-
2
5
4-
3
8
5-
4
5
3-
5
1-
6
4
2-
7
12
7
- 3-
8
7
3
1 -
2-
9
5
2
- 1
2 -
-
-
-
-
10
6
4
- -
2 -
-
-
-
-
11
4
2-
12
1
-
13
2
-
14
6
4-
15
3
2-
16
5
2
- I
2 -
-
-
-
-
17
6
4-
18
3
-
19
6
4-
20
1
1
- -
- -
-
-
-
-
21
7
7
- -
- -
-
-
-
-
22
6
3
- -
2
23
3
2
- -
--
24
4
2
- -
2 -
-
-
-
-
25
4
3
- -
1 -
-
-
-
-
26
1
1
- -
- -
-
-
-
-
27
3
-
- I
1-
28
4
3
- I
- -
-
-
-
-
29
2
-
- 1
--
30
5
3
- -
I-
31
3
-
- 1
1
TOTAL
138
78
1 18
23 1
-
12
2
3
n
U
•
U
JANUARY, 1985
NOISE COMPLAINTS
by
Category and Time of Day
During January the following complaints were recorded:
Category
Number
Percentage
Excessive Noise
78
57%
Structural Disturbance
1
.5%
Activity Interruption
18
13%
Nighttime Restricted Hours
23
17%
Run -ups
1
•5%
Low Flying
12
9%
Secondary Airports
2
1%
Miscellaneous
3
2%
138
100%
Time Number
2400 -
0559
8
0600 -
1159
43
1200 -
1559
23
1600 -
1959
10
2000 -
2359
23
CAP
31
138
•
0
MUNICIPAL
LEGCOIv1M
COMMISSION
TO: MLC Board of Directors
FROM: Bob Renner, Jr./�►'�41--�r
RE: Enclosed Handout
DATE: March 6, 1985'
Please find enclosed:
7900 Xerxes Avenue South
Suite 1500
Bloomington. Minnesota 55431
(612) 338-6610
1) A copy of the Resolution on Local Government Aids
which was adopted by the Board on February 21,
1985.
2) An explanation of the MLC policy on distribution
of new local government aid dollars.
3) A one-page handout giving specific examples of
how the MLC's distribution plan works if there
is a 4.5% increased appropriation for 1986 Local
Government Aids.
The above three handouts will be sent to the MLC legis-
lative delegation as well as the House and Senate Tax and Local
and Urban Affairs Committee members.
BR:dl
Enclosures
•
•
7900 Xerxes Avenue South
Suite 1500
Bloomington. Minnesota 55431
(612) 338-6610
Whereas, the Municipal Legislative Commission has adopted
principles for a formula to distribute local government
aid; and
Whereas, the League of Minnesota Cities has adopted a
local government aid formula which meets several of these
principles; and
Whereas, the League of Minnesota Cities' local government
aid formula is a significant improvement over the existing
local government aid formula;
Now therefore, be it resolved that the Municipal Legislative
Commission endorses and supports the League of Minnesota
Cities local government aid formula distribution if fully
funded; and
Be it further resolved, that distribution of any additional
local government aid funding over 1985 funding levels should
be prorated against the increases due under the fully -funded
League formula.
MUNICIPAL 7900 Xerxes Avenue South
Suite 1500
LMISLATPVE
Bloomington. Minnesota 55431
� COMMISSION (612) 338-6610
=xolar.ation of the
Municipal Lecislative Commission's
Local Government Aid Distribution Policy
On February 21, 1985, the Board of Directors of The
Municipal Legislative Commission adopted a local government aid
distribution policy based on the League of Minnesota Cities
pure formula. Although the MLC endorses and supports the
Leacue of Minnesota Cities formula it believes that the
distribution of new LGA dollars should be modified to allow
cities which have been penalized under the old LGA formula an
would be implemented.
Simply stated the MLC believes that the League's pure
formula amount should be the base from which to determine local
government aid increases. Those cities which are furthest from
the pure formula allocation amount should receive
proportionately more new dollars than those cities close to
their pure formula allocation.
EXAMPLE 1
1985 Aid Pure Formula Aid
City A $90,000 $200,000
City B $150,00.0 $200,000
• 1n Example 1 City A would receive a greater percentage of
new LGA dollar=_ than Citv B under the MLC approach. Under the
Opportunity to
reach the
"pure formula" at a faster
rate of
•
increase than
the League's
proposal. This memorandum will
explain, using
examples,
how the MLC's distribution
method
would be implemented.
Simply stated the MLC believes that the League's pure
formula amount should be the base from which to determine local
government aid increases. Those cities which are furthest from
the pure formula allocation amount should receive
proportionately more new dollars than those cities close to
their pure formula allocation.
EXAMPLE 1
1985 Aid Pure Formula Aid
City A $90,000 $200,000
City B $150,00.0 $200,000
• 1n Example 1 City A would receive a greater percentage of
new LGA dollar=_ than Citv B under the MLC approach. Under the
League's plan if loo more dollars were appropriated each city
would receive a 10% increase in aids until they reach their •
pure formula amount. Only when City B arrives at the pure
formula amount will its percentage growth rate slow. (Under
the League's proposal growth rates for cities that are at the
pare formula will only receive a 1% increase in aids each
year.)
Under the Municipal Legislative Commission's implementation
plan the increase in aids will be based on the difference
between what they would receive under the pure formula less
what they received in the current year.
EXAMPLE 2
1985 Aid Pure Formula Aid Difference
Citv A $90,000 $200,000•
$110,000
City B $150,000 $200,000 $50,000
One further step must be performed to determine the
percentage increase that will be applied to the difference
between the pure formula and the amount of current aid. This
factor is determined as follows:
Dollar Increase in LGA
AoDropriation _ Percentage to apply against
Pure Formula Cost Minus difference
Current Year Appropriation
Using 1985 as an example and assuming a 10% increase for
1986 aids the formula would be computed as follows:
- 1985 appropriation = $265 million
- 10% increase for 1986 aids = $26.5 million 26.5
- Cost of pure formula = $402 million 137 = 19.30
- Difference between pure formula and
1985 appropriation (402-265) _ $137 million
•
2.
If the increase were only 4.5% the formula would be:
• = 1985 appropriation = $265 million
4.5% increase for 1986 aids = $11.9 million
Cost of pure formula = $402 million
Difference (402-265) _ $137 million
K]
•
11.9
137 = 8.70
This percentaae is then applied against the difference
determined under Example 2. Example 3 illustrates this
procedure.
MLC IMPLEMENTATION EXAMPLE 3
(10% increase in appropriation)
City A City B
1985 Aid $90,000 $150,000
Pure Formula Aid 5200,000 $200,000
Difference $110,00 $50,000
`s Factor 19.3% 19.3%
S Increase (% Factor $21,230 $9,650
Multiplied by Difference)
1986 Aid 111,230 159,650
Increase 23.5% 6.4%
If the League of Minnesota Cities implementation were used
the distribution would be as follows:
Pure Formula A
Difference
LEAGUE IMPLEMENTATION EXAMPLE 4
(10� increase in appropriation)
City A City B
$90,000 $150,000
$200,000
3.
N/A
$200,000
N/A
0
f t
Factor 10% 10%
$ increase (a Factor $9,000 $15,000
Multiplied by 1985 Aid)
1986 Aid $99,000 $15,000
% Increase - 10% 10%
It is important to understand that all cities will arrive
at their pure formula amount on the same future date whether
the Legislature uses the Municipal Legislative Commission's
implementation or the League's implementation policy. The
difference being that those cities furthest from the pure
formula amount will receive greater percentage increases than
those cities closer to being fully funded. The MLC believes
this is a more equitable method of distributing new LGA dollars
because it reduces the present disparities more expeditiously
than the League's "equal percent" plan.
It must also be mentioned that the MLC has not taken a
position on the appropriation level. Both the League's and the
MLC's distribution formulas can be implemented if there is any
increase in the LGA appropriation.
The factors which will determine when all cities become
pure formula" cities depends on the amount of future
legislative aporooriations for local government aids and the
increase in the cost of funding the pure formula.
4.
•
I 1
U
'MUNICIPAL Suit Xerxes Avenue South
LEGISLATM Suite 1500
Bloomington. Minnesota 55431
COMMISSION (612) 338-6610
1986 LOCAL GOVERNMENT AIDS*
Assumes 4.5% Increase In Appropriation
*These numbers will vary slightly from computer runs due to rounding.
0
Pure
1986 LGA
Per Cent
1986 LGA
Per Cent
City
1985 LGA
Formula
League
Increase
MLC Plan
Increase
(000)
(000)
(000)
(000)
Austin
$2,666
$4,786
2,766
3.75
$2,850
6.9
Bloomington
2,402
4,738
2,492
3.75
2,605
8.4
Brooklyn Park
1,781
3,172
1,848
3.75
1,902
6.8
Coon Rapids
2,123
3,448
2,203
3.75
2,238
5.4
Crosby
205
495
213
3.75
230
12.2
Detroit Lakes
725
821
752
3.75
733
1.1
Wluth
10,528
25,510
10,923
3.75
11,831
12.4
dina
551
1,466
1,132
105.5
631
14.5
Eden Prairie
274
966
531
93.8
334
21.9
Ely
516
1,357
535
3.75
589
14.1
Jackson
403
802
418
3.75
438
8.7
Litchfield
502
807
521
3.75
529
5.4
Little Fork
63
197
65
3.75
75
19.0
Mankato
3,512
4,648
3,644
3.75
3,611
2.8
Maplewood
1,277
1,436
1,325
3.75
1,291
1.1
Minneapolis
58,041
76,538
60,218
3.75
59,650
2.8
Minnetonka
1,583
1,847
1,642
3.75
1,606
1.5
Moorhead
2,282
5,180
2,368
3.75
2,534
11.0
Silver Bay
155
909
161
3.75
221
42.6
St. Paul
33,863
45,689
35,133
3.75
34,891
3.0
Tracy
323
737
335
3.75
359
11.1
Walker
148
180
154
3.75
151
2.0
Winona
2,658
4,886
2,758
3.75
2,852
7.3
Woodbury
430
574
446
3.75
443
3.0
*These numbers will vary slightly from computer runs due to rounding.
0
! F&Q
0
AGENDA
SPECIAL CITY COUNCIL MEETING
MARCH 12, 1985
7:00 P.M.
EAGAN MUNICIPAL CENTER BUILDING
I. Can American Consideration For
Tax Increment/Interest Rate Reduction
II. Transition Re: Director of Public Works
Position
III. Personnel
IV. RFP For Banking Services
V. M.B.O. Update
VI. Update
VII. Other
VIII. Adjournment
n
LJ
• MEMO TO: HONORABLE MAYOR BLOMQUIST AND MEMBERS OF THE CITY COUNCIL
FROM: CITY ADMINISTRATOR HEDGES
DATE: MARCH 8, 1985
SUBJECT: SPECIAL CITY COUNCIL MEETING
A special City Council meeting was set for Tuesday, March 12,
1985, at 7:00 p.m. The purpose of the meeting is to allow a brief
presentation by the Can American group regarding a request for tax
increment financing or what is more commonly referred to as the
interest rate reduction program. Also, there are some workshop
related issues such as the transition for the Director of Public
Works, some personnel matters, a discussion of the RFP for banking
services, the M.B.O. update and a provision on the agenda for
update if time permits.
CAN AMERICAN CONSIDERATION FOR TAX INCREMENT/INTEREST RATE REDUCTION
Mark Parranto, on behalf of the Can American group, has requested
time at the special City Council meeting to discuss an application
for interest rate reduction financing to help assist the Can
American project. As a matter of update, the City Council has
• previously granted multi -family mortgage revenue bond financing to
the Can American group in the amount of $12,500,000 to help
finance the construction of an approximately 260 -unit rental
housing development to be located at the northwest corner of Cedar
Avenue and Cliff Road. The project is entitled Cinnamon Ridge
Limited Partnership.
During the month of December, the City received an application for
an interest rate reduction program from the Can American Reality
Corporation for this same project. The application was completed
according to the City's format and approved guidelines. A copy of
the application and support documentation were presented to the
City Council as a part of the December 18 City Council packet.
Since the information was presented some three months ago, a new
copy is included for your review.
The Can American group is reluctant to expend the dollars and time
that is required for preparing all documentation for an interest
rate reduction program without some indication as to whether the
City Council may support this type of financing. Since this
interest rate reduction application is the first received by the
City and the cost for preparation of all documentation is
expensive, Can American Reality Corporation group would like an
opportunity to discuss this item with the City Council. Mayor
Blomquist indicated at the meeting that their presentation should
• be limited to 15 minutes, followed by questions the City Council
might have regarding the application. Those procedural instruc-
tions were given to Mark Parranto on behalf of the applicant.
This is not a public hearing and there can be no formal action
taken by the City Council.
MEMO
MARCH 8, 1985
PAGE 2
TRANSITION REGARDING DIRECTOR OF PUBLIC WORKS POSITION •
The City Administrator would like to follow up with a few comments
regarding the transition program for replacement of the Director
of •Public Works that was outlined after the last City Council
meeting. It is not anticipated that a great deal of time is
necessary on this item.
PERSONNEL
The City Administrator would like to discuss the employment
status of two (2) employees. A documentation will be shared
with the City Council in addition to two (2) memorandums of
employment that reveal a number of employment conditions pertaining
directly to their current employment status. These memorandums
were reviewed in detail with our City Attorney and a labor law
specialist, Mr. John Rozack. Tom Colbert will be present to
aid in the discussion and/or answer any questions regarding
the transition and the personnel issue.
The City Administrator .would like to discuss a car allowance
rate for the City Planner and vacation accrual for department
heads. Both are policy issues and will require some brief expla-
nation by the City Administrator on Tuesday.
RFP FOR BANKING SERVICES •
One of the objectives outlined in the 1984 NBO was to implement
an RFP for banking services. A draft was completed by the Director
of Finance, reviewed by the City Administrator and is ready
for consideration by the City Council. The RFP is extremely
technical and lengthy and will not be completed in the typing
pool until late Monday. The City Administrator has asked the
Director of Finance to be present at the special City Council
meeting and provide a brief summary of the RFP so the City Council
is at least familiar with the type of services the City is request-
ing for its banking needs. The RFP's will be available for
distribution at the meeting on Tuesday.
M.B.O. UPDATE
Enclosed is a copy of the original M.B.O. that was established
February 28 of 1984 and, subsequently, amended July 16 and November
13 of 1984. It was the recommendation of the City Council at
the November 13 meeting that a new M.B.O. listing be prepared
eliminating all those objectives that were completed during
1983-1984. Therfore, a new sheet was prepared and is enclosed
for your review.
Please review the list prior to the Tuesday evening meeting
and add any objectives you feel are desirable for City Council
consideration.
UPDATF.
The City Administrator would like to provide an update to the
City Council on 1) airport noise, 2) City Celebration Committee
U
M
't MEMO ,
• MARCH 8, 1985
PAGE 3
3) pending legislation, 4) other, recognizing "10:00 p.m." curfew
for.special City Council meetings. The items listed under "Update"
will be discussed if time permits.
Enclosed in each of your special City Council meeting packets
is a copy of the following:
1) MASAC agenda and minutes.
2) Update on legislation that is monitored by the AMM.
3) Information from 'the MLC regarding the local government
aid distribution policy.
City Administrator
TLH/jj
•
J
Agenda Information Memo
• December 18, 1984 City Council Meeting
Page Thirty -Three
INTEREST RATE REDUCTION/CINNAMON RIDGE
A. Consideration of an Interest Rate Reduction Application
for Cinnamon Ridge (Can -America Realty Corporation) --The City
of Eagan has received a check in the amount of $500 and an applica-
tion for an interest rate reduction program from the Can -American
Realty Corporation for the Cinnamon Ridge multifamily housing
project. The application was completed according to the City's
format and recently approved guidelines. Because this application
is a first, the City Administrator has provided a copy of the
application and support documentation for review by the City
Council. In the future, to respect the streamlining and quantity
C of information, these types of applications will be summarized
for Council review. For information on the interest rate reduction
program and a copy of the application, refer to pages 1-7& through
IZA-7 . Since this item is technically reviewed by the HRA,
it will be necessary for the City Council to suspend the City
Council meeting and convene as an HRA to deal with this application.
The City Administrator or referenced as the Executive Director
• of the HRA is somewhat unclear as to the procedure for an interest
rate reduction program and has requested information from bond
counsel, Mr. Stan Kehl, that will be helpful in providing a
step by step analysis of the HRA's action if an interest rate
reduction program is to be approved for Can -American.
ACTION TO BE CONSIDERED ON THIS ITEM: The Executive Director
will review the action with Mr. Stan Kehl and the City Council
will be advised of the proper steps as a part of the Administrative
Agenda on Monday or during discussion of the HRA business at
the City Council meeting on Tuesday.
Special Note: It would be appropriate, following discussion
and action on the HRA business, that the HRA meeting be adjourned
and the City Council meeting reconvened.
s/Thomas L. Hedges
City Administrator
Ll
1 % 5'
CITY OF EAGAN, MINNESOTA
Interest Rate Reduction Program Application
1. Name of Project
CINNAMON RIDGE
Date December 10, 1984
Project Address. THE NORTHEAST CORNER OF CEDAR AVE. AND CLIFF ROAD
2. Applicant Name CAN—AMERICAN REALTY CORPORATION
C Address 1117 MARQUETTE AVENUE, SUITE 200. MPLS., MN 554ni
Contact Person BRYAN L. WEBER
Telephone Numbers 332-5544 (work)
3. Form of Business (check one)
• Sole Proprietorship Partnership Corporation x
•
If partnership, include names of partners and ownership interest.
N/A
4. Partnership's Legal Counsel (firm name)
Kaplan, Stranp-is & Kaplan. P.A.
Address 555Pillsbur Center
-200 South Sixth Street
MinneaDOUS. MN 55402
Contact Person David Karan
Telephone Number 375-1138
-1- 176
5. Experience in multifamily construction and/or rehabilitation. •
CITY PROJECT NAME 'F UNITS
Minneapolis Symphony Place 250
Minneapolis Seven Corners Ants. 248
Roseville Coventry 196
Fridlev Village Green 196
Golden Valley Dover Hill 214
Minnetonka Elmbrooke 46
6. Project Description: Cinnamon Ridge consists of 260 garden i
apartments in 11 buildings which each contain 24 units The
units are designed to give them a townhouse feel with many
separate entries, bay windows and brick chimneys The exterior
will be a combination of brick and no -maintenance vinyl sidin•
Each unit will have a washer and dryer as well a
refirgerator, dishwasher and disposal. The units on the top
loot (1/3) will have fireplaces.
7. The total cost of the project will be approximately $_13,18 5,000
8. Attach a site map showing zoning of all adjacent property.
9. Are there any unusual site conditions requiring excessive site
preparation activities prior to construction?
No x Yes If yes, specify:
i
-2- X7-7
•
10. Proposed monthly
rent structure with interest.rate reduction
assistance:
S
Efficiency
g 485
One Bedroom
$ 585
Two Bedroom
g
Three Bedroom
Proposed monthly
rent structure without interest rate reduction
assistance:
$
Efficiency
g 535
One Bedroom
C.
$ 635
Two Bedroom
$
Three Bedroom
11. Is this project
to be financed with the City's tax-exempt bonds?
No Yes
x
•
If yes, attach one copy of your Multifamily Housing Bond Program
Request.
..
If no, complete
sections 12 and 13.
12. Source and Use of Funds - Revised breakdown attached.
Source
.59
Type and amount of financing 10,550,000 - tax exempt bonds
Developer Equity 2,635,000
•
Other
Total
Use
Construction Costs 9,960,000
Other 3,225,000 (architect,
Total
-3-
13,185,000
land,financing, etc.
13,185,000
1-7S
13. Appraised value of project $ _ •
Source of Appraisal (check one)
MAI Other
If other, identify some source and method of determining appraised
value.
Based on discussions with appraisers working on a
slightly lower quality project in the area, we have
been advised of a minimum value of $50,000 a unit -
which in our case equals 13 million.
l�
14. Attach a one page summary describing why you feel your project needs •
tax increment assistance.
Please remit your check in the amount of $500 payable to the City of
Eagan, to the attention of:
Ms. Marcia A. Cohodes
MILLER b SCHROEDER MUNICIPALS, INC.
7900 Xerxes Avenue South
Suite 2300
Minneapolis, Minnesota 55431
Include two copies of this application with your check. •
11
Can -American Realty has planned from the outset a top-
quality, yet moderate market -rate, rental project called Cinnamon
Ridge Apartments. The visibility of our site to major roadways
and its close proximity to the single-family homes of the
Cinnamon Ridge development area has made us particularly
sensitive to listening and satisfying the concerns of both City
planners and surrounding neighbors. As such, after meeting with
interested parties, we have designed an apartment project of
small clusters of rental residential units that blends with the
community, and that has won the stated support of local
residents. The design features and considerations which we have
incorporated at Cinnamon Ridge makes it necessary to seek tax
assistance under existing State and local law from the City of
Eagan.
Current market -rate rents affordable to young and/or growing
professional households in the Eagan market, as verified by
mortgage underwriters and certified appraisers, would not support
the rental project we propose on a basis that would make the
project work for Can -American. Rather than design a project
which centers around a large block structure of 75 to 100+ units
per building, we have designed a project of eleven smaller
• buildings that look and feel like the surrounding neighborhood.
Each building utilizes a mix of brick, wood and vinyl siding
building materials combined in an exterior design of varied roof
lines, decorative windows, balconies and brick chimneys. These
design amenities are more costly than the single, monolithic
design block building, but are consistent with the quality of
market -rate rental product developed by Can -American and
necessary to meet the neighbors concerns.
(' In addition, we believe the quality level of our project and
the affordable market -rate rents (maintained by tax -increment
assistance) will appeal to professional households of individuals
that will enhance the community and ultimately settle in the City
of Eagan. By assisting our project with tax increment financing,
the City will help Can -American finance and develop a rental
project that will increase the availability of rental housing for
moderate income families in the City, and will add to the City
property tax base in the near and Long term.
Attached are letters from the general contractor and
architect that detail the above design amenities. Can -American
has committed significant time and investment to Cinnamon Ridge
Apartments, and we look forward to developing the project to
completion with the City's assistance.
11
11D
`.^/insor,'FaricyArchitects,Inc. Suite 375, 28 West Fifth Street
Saint Paul, Minnesota 55102
612 . 227. 0655
14 November 1984
Can -American Realty Corporation
1.117 Marquette Avenue, Suite #200
Minneapolis, Minnesota 55403-2457
Attn: Bryan Weber
RE: Cinnamon Ridge Housing
W/F Project No. 7504-840-7
Dear Bryan:
Archilecls
Interior Designers
Planners
We feel the following elements and features of the Cinnamon Ridge project make it
stand above other typical rental housing projects:
Site Design
1. A new public street (at the Owner's expense) has been included
in the site design for the project and serves to route traffic from
the project directly to Cliff Road. This new street (i.e., Slater
Road) was designed with a large curve (rather than a direct route
through the parcel) to help in buffering the project from the
adjacent Cedar Avenue.
2. The site design for the apartments features 4 clusters of apart-
ments, each with 2 or 3 buildings. The clusters are designed
with separate access and parking areas, rather than having one
large central parking lot. Therefore, the visible size of the parking
areas is considerably reduced and the project relates more closely
to the adjacent neighborhood.
Building Design
1. The 2-1/2 story walk-up buildings have been designed with
numerous offsets in the facades, vertical steps in each building
and sloped roofs to give an appearance of smaller scaled structures
(i.e., townhouse design). This design technique was utilized to
make the buildings (and project) much more compatible with
the adjacent residential neighborhood.
2. The buildings feature additional details (i.e., bay windows, arched
windows at the entries, balconies or patios at every unit, etc.)
which help relate the project to the adjacent smaller residen-
tial units.
3. Similarly, the use of brick on portions of the exterior (i.e.,
chimneys, end walls, building offsets) helps the scale of the
building. The project is not presented as a large "all brick" housing
project, but is not all wood siding either. The exterior materials
(brick, vinyl siding, aluminum windows) are maintenance free
and thus assure the project will remain attractive.
l� I
•
C
11
C
•
11
. Ainsor/FaricyArchitects,Inc.
Building Design (Continued)
Mr. Bryan Weber
Can -American Realty Corporation
14 November 1984
Page No. 2
4. Entry into all buildings is controlled with a security system,
however, unlike many rental projects, this is not coupled with
long corridors and access to all units. Only 12 apartment units
are accessible at each entry, thus providing a smaller scale and
more privacy for the tenants.
5. The complex, although comprised of walk-up apartments, will
feature a 1,150 sq. ft. community room and a 2,150 sq. ft. exercise
room with sauna, whirlpool and locker rooms, similar to those
provided in larger rental projects.
Unit Design
1. One of the most significant features related to the design of
the apartment units is their size as compared to many typical
rental apartments. One bedroom units are approximately 800
sq. ft. (i.e., 792), two bedroom units are approximately 1,100
sq. ft. (i.e., 1,070), and the split two bedroom unit is 1,160 sq.
ft. The units thus offer an adequate and flexible space for furni-
ture layout.
2. The finishes utilized throughout the apartments are the same
as those typically utilized in "for sale" condominium projects
and include:
- Wood baseboard, trim and doors in a natural finish.
-- Carpeted living, dining and bedroom areas.
- Sheet vinyl flooring in all kitchens and baths.
-Ceramic tile walls around all bathtubs.
3. The units are designed so each is equipped with an individual
forced air heating and air conditioning system, and a hot water
heater.
4. All apartment units on the top floors of the buildings (i.e., 88
units) will have wood burning fireplaces.
5. Appliances included in each apartment are also the same as those
typically provided in condominium type projects. Kitchens are
equipped with a disposal, dishwasher, frost -free refrigerator/
freezer, 30" range, and range hood. In addition, each unit is
also equipped with a washer and dryer.
Sincerely, `
4ad.
l,C�� AslA Leer, AIA
Senior Associate
DJL/jmd
cc: Pete Dommino - Frana & Sons Construction
Eric Galatz - Winsor/Faricy Architects, Inc.
4�
FRANA AND SONS INC.
GENERAL CONTRACTORS
7490 MARKET PLACE DRIVE • EDEN PRAIRIE, MINNESOTA 55344 (612) 941-0282
November 27, 1984
Can -American Realty Corporation
1117 Marquette Avenue
Minneapolis, Minnesota 55403
Attn: Brian Weber
Re: Cinnamon Ridge Housing
Dear Brian:
Per our meeting of November 9, 1984 I have priced up using vinyl siding
in lieu of hardboard siding on the project. The cost change to substitute the •
Restoration Series Three vinyl siding by Wolverine Building Products in lieu of
the hardboard siding would be a net deduct of $20,000.00 (Twenty thousand dollars
and no cents). The design would include all of the wood trim and soffits painted
as shown on the drawings. If we were to metal wrap all of the trim and use metal
soffits and fascia, the net change to the project would be approximately an add
of $40,000.00 (Forty thousand dollars and no cents). The details of the soffits,
fascia trim, and windows would have to be discussed further before we can final-
ize a price add for metal wrapping all of the exterior.
We also discussed the cost difference between this project and a 3 -story
underground garage 90 -unit building. The cost per unit for this project is .
approximately $37,725.00. The cost per unit for a 90 -unit building is approxi-
mately $33,225.00. The total approximate difference in construction cost than
would be $1,170,000.00.
The following is a breakdown of the cost difference in the project.
PER UNIT
TOTAL
Roadway
175.00
45,000
Brick work (other project was all vinyl siding
with painted wood trim)
1,500.00
390,000
Fireplaces
345.00
90,000
Individual washer and dryer
750.00
195,000
Indiiidual gas fired heating and central air
conditioning
1,215.00
316,000
Conc ete, framing, windows and doors (This
•
number includes the cost of the elevator
and fire sprinkler system required in the
90 -unit building)
515.00
134,000
TOTT ADDS
4,500.00
1,170,000
1�'3
november 27, 1984
® Page Two
These comparisons are based on a 212 unit project bid approximately the
same time as the Cinnamon Ridge Project. These numbers are ror comparison
purposes only.
I' you have any Further questions, please do not hesitate to call.
Sincerely,
Peter J. Donnino
Project Coordinator
CFrana and Sons, Inc.
CC: Don Leier
Winson Faricv Architects, Inc.
28 :•lest 5th Street - Suite 375
St. Paul, Minnesota 55102
PJD:lmm
11
CIWA.uON RIDGE APaRT.=gTS-
Total Project and Financing Costs
November 12, 1984
Hard Construction Costs:
Frana Bid (9/5/84 supplied to City of Eagan) $ 9,740,000
Add Gas/Heat System (estimate attached) 220.000
Total Project Costs $ 9,960,000
Land Price 690,000
Architect, Engineering Fees (10/22/84 bid) 275,000 C
Insurance, Taxes during Construction 50,000
Marketing, Furniture S Fixtures 75,000
Legal, Title, Recording 50,000
Finance Costs During Construction:
10.5% Interest 1,102,500 •
2.0% Letter of Credit 210,000
1.0% Loan Origination Fee 105,000
3.5% Bond Underwriting Fees 367,500 1,785,000
Operating Deficit Guaranteed and Paid by Developer 300,000
Total Project Costs $13,185,000
80% Tax -Exempt Bond Issue $10,550,000
20' Developer Equity $ 2,635,000
•
)$5
0
ZONING
NORTH
P.D. 81-2, Zachman Homes. This is an area of multi -family
dwellings consisting basically of apartments in the carriage
home style. Further North is the River Hills area, a single
family development.
EAST
The eastern boundary of the property is the Cedar Avenue
Freeway. Immediately East of the Freeway is the Mari Acres
Community Shopping area. Presently, an office building and
a McDonald's have been built.
• SOUTH
The entire area South of Cliff Road is zoned P.D. 81-3, the
Winkler Jackson area. The land adjacent to Cliff Road is
zoned for commercial uses., Further South, the intended use
becomes multi -family, both townhouse and apartment. There
is a single family development underway at the southern edge
of the Planned Development.
WEST
�tr P.D. 81-2, Zachman Homes. This area is primarily duplex,
owner -occupied and single family cluster homes. Further
West is the City of Burnsville. The area is a single family
development known as South River Hills.
•
go
07
Zoning Reap
•
A REVISED M.B.O. SHEET WILL BE
INCLUDED ON MONDAY
•
r 1
U
•
AGENDA
METROPOLITAN AIRCRAFT SOUND ABATEMENT COUNCIL
GENERAL MEETING
February 26, 1985
7:30 P.M.
6040 28th Avenue So., Minneapolis, MN
1. Call to Order, Roll Call
2. Approval of Minutes of General Meeting on January 22, 1985
3. Introduction of Invited Guests, and Receipt of Communications
4. Technical Advisor's Preferential Runway System Utilization Report and
Complaint Summary Report
5. Persons Wishing to Address the Council
6. Minutes of Operations Committee Meetings: February 7 and 21, 1985
7. Monthly Complaint Report: Method of Tabulation
8. Minutes of Executive Committee: February 4, 1985
9• Noise Abatement Plan Yearly Report: Discussion
10. Report of MASAC Representative to MAC Meeting on February 19, 1985
11. Other Items Not on Agenda
12. Next Meeting Date: March 26, 1985
13. Adjournment
.j
n
LJ
MINUTES
METROPOLITAN AIRCRAFT SOUND ABATEMENT COUNCIL
Call to Order, Roll Call.
GENERAL MEETING
7:30 P.M.
January 22, 1985
Minneapolis, Minnesota
• Chairman Walter Rockenstein called the meeting to order at 7:30 p.m. and
asked the secretary to call the roll. The following members were in
attendance:
Ben Griggs (R)
Northwest Airlines
Bob Johnson (R)
Republic Airlines
Jack Spalding (A)
United Airlines
Gary White (A)
Midway Airlines
Rich Kidwell (R)
Western Airlines
James McLaughlin (A)
Air Line Pilots Association
Ron Glaub (R)
Minnesota Business Aircraft Association
Jeff Hamiel (R)
Metropolitan Airports Commission
Art Tomes (A)
Minneapolis Chamber of Commerce
Walter Rockenstein (R)
City of Minneapolis
Roylene Champeaux (R)
City of Minneapolis
Kristin Clinton (A)
City of Minneapolis
Scott Bunin (R)
City of St. Paul
Eugene Bohmert (R)
City of St. Paul
Lloyd Wickstrom (A)
City of St. Paul
Donald Priebe (R)
City of Richfield
Donald Fondrick (R)
City of Richfield
Robert Mood (R)
City of Bloomington
Larry Shaughnessy (R)
City of Mendota Heights
Tom Baker (R)
City of Eagan
Mike Brucciani (R)
City of Burnsville
Bob O'Brien (A)
City of Burnsville
Juan Rivas (A)
City of Burnsville
• Martin Silvi (R)
City of Inver Grove Heights
MASAC Minutes
Advisors
Bob Botcher
Alan Lindquist
Commissioner Nancy Witta
Darrell Weslander
Joan Vandersloot
Guests
Eileen Scully
Judy Uban
Anne Storey
Dave Kelso
Louis Hoffman
Diana Peterson
Sue Anderson
Floyd Anderson
Larry Hartman
J. K. Nelson
Douglas Koehntop
Don and Olive Witz
Chauncey Case
Jim Aswegan
Martin Kirsch
George Hall
-2-
January 22, 1985 i
•
Federal Aviation Administration
Federal Aviation Administration
Metropolitan Airports Commission
Technical Advisor
Secretary
Minneapolis
Minneapolis
Minneapolis
Minnesota Pollution Control Agency
Minneapolis
Minneapolis
Minneapolis
Minneapolis
Minneapolis
Bloomington
St. Anthony Village
Richfield
Metropolitan Council
Minnesota Department of Transportation
Richfield •
2. Approval of Minutes of General Meeting on December 4, 1984.
M
4
The December 4, 1984 minutes were approved as presented.
Introduction of Invited Guests, and Receipt of Communications.
Walter Rockenstein introduced Donald Fondrick from the City of Richfield who
is replacing Martin Kirsch as.representative to MASAC. Also mentioned was the
new alternate representative from Western Airlines, David Reveling, District
Sales Manager.
ical Advisor's Preferential Runway System Util
The reports for the months of November and December, 1984, were presented by
Darrell Weslander. Some discussion followed regarding the way in which the
noise complaints are received, and it was the consenses that the issue be
further discussed at the February meeting.
•
I
•
•
•
MASAC•Minutes -3-
5. Persons Wishing to Address the Council.
No one wished to address the council.
6. Aircraft Noise Profiles, Jim Aswegan, MN DOT.
January 22, 1985
Walter Rockenstein introduced Jim Aswegan who has been employed by MN DOT for
15 years, 12 years of which have been in acoustical research. He has served
as technical advisor to the Metropolitan Council and is currently a member of
the Noise Policy Review Committee.
Jim Aswegan, with the aid of a slide presentation, used a variety of charts to
show the difference in sound of the various aircraft, and elaborated on the
future with the new generation, Stage III equipment. The affects of the quieter
aircraft will be most noticeable as the noise will be contained on the airport
property itself. Questions and answers followed the presentation.
7. South Minneapolis Airport Action Council: Floyd Anderson.
Dr. Floyd Anderson, a resident of Minneapolis and president of the South
Minneapolis Airport Action Council (SMAAC), made a presentation regarding noise
and its affect on the citizens in the community. He referred to a proposal
presented to the Metropolitan Airports Commission (MAC) and the Federal Aviation
Administration (FAA) and 'wished some assistance in agreement.
rt Johnson
motion passes unanimously.
8. Noise Abatement Plan Yearly Report.
Baker that
meet
Jeff Hamiel briefly reviewed the Report and the Minnesota Pollution Control
Agency's response to it. In addition, he referred to the MAC's letter in reply
to the MPCA critique.
9. Other Items Not on Agenda.
Darrell Weslander referred to the Position Paper proposed by the Burnsville
Aircraft Noise Committee (BAN) which was included in the January package. It was
suggested that the proposal be referred to the Operations Committee for review.
Discussion followed regarding the 1800 turn which was discontinued January 1, 1985•
The 1800 turn which is recommendation F. of the Noise Abatement Operations Plan
was referred to the Operations Committee of MASAC to begin the study and recom-
mendation process. The steps concerning this process are as follows: 1) the
Operations Committee (MASAC) will investigate the affects of the departure heading
and subsequently recommend action to MASAC; 2) MASAC will review and recommend
action to the Operations and Environmental Committee of the Commission; 3) the
Operations and Environmental Committee will present the findings to the full
Commission, who will then present the recommended action to the FAA. The MASAC
I
MASAC Minutes -4- January 22, 1.985•
Operations Committee meetings, MASAC meetings and the Operations and •
Environmental Committee meeting are open to the public and comments' will be
received.
Asan update, Walter Rockenstein commented on Stage 1 aircraft and the very
limited exemptions made by Congress, and the FAA. It appears that this subject
has become a topic of major litigation. Those airlines not granted the exemption
have filed discrimination suits; some airlines that have fleets in compliance
have filed counter suits.
10. Report of MASAC Representative to MAC Meetings on December 17, 1984, and
nua
Scott Bunin was MASAC's representative at both of the above-mentioned meetings.
The relevant issues of the January 21 meeting were the yearly report, previously
presented by Jeff Hamiel, and the matter of differential landing fees.
Commissioner Del Calzo believes a decision should be made regarding this issue,
and it was referred to the Operations and Environmental Committee of the
Commission.
11. Establish Next Meeting Date.
The next MASAC meeting is scheduled for February 26, 1985•
In an effort to reduce agenda items at upcoming MASAC meetings, dates for future •
1985 meetings are as follows:
March 26
April 23
May 28
June 25
July 23
August 27
September 24
October 22
December 3
12. Adjournment.
The meeting was adjourned at 10:15 P.m.
Respectfully submitted:
Joan Vandersloot
MASAC Secretary
•
198
Wold-Chamber)M
43
Run -ups
2
Miscellaneous
3
1985
48
Wold-Chamberlaln Field
132
Run -ups
1
Miscellaneous
5
Total
138
Miscellaneous complaints
In-
cludes helicopters and secon-
dary airports.
3
Anoka 2
Helicopters 3
MINNEAPOLIS
tro6S1oM�l
28 39% ^C�
11% 3
ArA
1 "t•
ORICHFIELD/
BLOOMINGTON
HOURLY PERCENTAGE USE OF RUNWAYS
O
O
PAUL/HIGHLAND PARK
MENDOTA HEIGHTS/'
EAGAN
OPERATIONS SUMMARY -
Itinerant:
Air Carrier
Commuter
General Aviation
Military
MINNEAPOLIS/ST. PAUL INTERNATIONAL AIRPORT Local:
Civil
Military
JANUARY, 1985 Total Average Daily Opns
1985 / 1984
631 512
82 149
158 16o
20 13
23 32
0 D
914 / 865
CONSOLIDATED SCHEDULE (AC) _752/650.
137/12 of these are 3rd level carriers
utilizing prop aircraft.
TO
LOG
Apple Valley
21
0
Bloomington.
5
1
Burnsville
34
0
Cottage Grove
0
1
Eagan
16
5
Inver Grove Heights
5
3
Mendota Heights
4
0
Minneapolis.
23
2
Richfield
3
0
St. Louis Park
1
0
St. Paul
7
0
West St. Paul
0
1
119
13
MINNEAPOLIS
tro6S1oM�l
28 39% ^C�
11% 3
ArA
1 "t•
ORICHFIELD/
BLOOMINGTON
HOURLY PERCENTAGE USE OF RUNWAYS
O
O
PAUL/HIGHLAND PARK
MENDOTA HEIGHTS/'
EAGAN
OPERATIONS SUMMARY -
Itinerant:
Air Carrier
Commuter
General Aviation
Military
MINNEAPOLIS/ST. PAUL INTERNATIONAL AIRPORT Local:
Civil
Military
JANUARY, 1985 Total Average Daily Opns
1985 / 1984
631 512
82 149
158 16o
20 13
23 32
0 D
914 / 865
CONSOLIDATED SCHEDULE (AC) _752/650.
137/12 of these are 3rd level carriers
utilizing prop aircraft.
Date
Number of
Complaints
Excessive
Noise
MINNEAPOLIS -ST. PAUL INTERNATIONAL COMPLAINT
Nighttime
Structural Activity Restricted
Disturbance Interruption Hours Run -ups
RECORD
Danger
Perceived
Low
Flying
Month of
Secondary
Airports
JANUARY, 1985
Miscellaneous
1
6
5-
2
5
4-
3
8
5-
4
5
3-
5
1-
6
4
2-
7
12
7
- 3-
8
7
3
1 -
2-
9
5
2
- 1
2 -
-
-
-
-
10
6
4
- -
2 -
-
-
-
-
11
4
2-
12
1
-
13
2
-
14
6
4-
15
3
2-
16
5
2
- I
2 -
-
-
-
-
17
6
4-
18
3
-
19
6
4-
20
1
1
- -
- -
-
-
-
-
21
7
7
- -
- -
-
-
-
-
22
6
3
- -
2
23
3
2
- -
--
24
4
2
- -
2 -
-
-
-
-
25
4
3
- -
1 -
-
-
-
-
26
1
1
- -
- -
-
-
-
-
27
3
-
- I
1-
28
4
3
- I
- -
-
-
-
-
29
2
-
- 1
--
30
5
3
- -
I-
31
3
-
- 1
1
TOTAL
138
78
1 18
23 1
-
12
2
3
n
U
•
U
JANUARY, 1985
NOISE COMPLAINTS
by
Category and Time of Day
During January the following complaints were recorded:
Category
Number
Percentage
Excessive Noise
78
57%
Structural Disturbance
1
.5%
Activity Interruption
18
13%
Nighttime Restricted Hours
23
17%
Run -ups
1
•5%
Low Flying
12
9%
Secondary Airports
2
1%
Miscellaneous
3
2%
138
100%
Time Number
2400 -
0559
8
0600 -
1159
43
1200 -
1559
23
1600 -
1959
10
2000 -
2359
23
CAP
31
138
•
0
MUNICIPAL
LEGCOIv1M
COMMISSION
TO: MLC Board of Directors
FROM: Bob Renner, Jr./�►'�41--�r
RE: Enclosed Handout
DATE: March 6, 1985'
Please find enclosed:
7900 Xerxes Avenue South
Suite 1500
Bloomington. Minnesota 55431
(612) 338-6610
1) A copy of the Resolution on Local Government Aids
which was adopted by the Board on February 21,
1985.
2) An explanation of the MLC policy on distribution
of new local government aid dollars.
3) A one-page handout giving specific examples of
how the MLC's distribution plan works if there
is a 4.5% increased appropriation for 1986 Local
Government Aids.
The above three handouts will be sent to the MLC legis-
lative delegation as well as the House and Senate Tax and Local
and Urban Affairs Committee members.
BR:dl
Enclosures
•
•
7900 Xerxes Avenue South
Suite 1500
Bloomington. Minnesota 55431
(612) 338-6610
Whereas, the Municipal Legislative Commission has adopted
principles for a formula to distribute local government
aid; and
Whereas, the League of Minnesota Cities has adopted a
local government aid formula which meets several of these
principles; and
Whereas, the League of Minnesota Cities' local government
aid formula is a significant improvement over the existing
local government aid formula;
Now therefore, be it resolved that the Municipal Legislative
Commission endorses and supports the League of Minnesota
Cities local government aid formula distribution if fully
funded; and
Be it further resolved, that distribution of any additional
local government aid funding over 1985 funding levels should
be prorated against the increases due under the fully -funded
League formula.
MUNICIPAL 7900 Xerxes Avenue South
Suite 1500
LMISLATPVE
Bloomington. Minnesota 55431
� COMMISSION (612) 338-6610
=xolar.ation of the
Municipal Lecislative Commission's
Local Government Aid Distribution Policy
On February 21, 1985, the Board of Directors of The
Municipal Legislative Commission adopted a local government aid
distribution policy based on the League of Minnesota Cities
pure formula. Although the MLC endorses and supports the
Leacue of Minnesota Cities formula it believes that the
distribution of new LGA dollars should be modified to allow
cities which have been penalized under the old LGA formula an
would be implemented.
Simply stated the MLC believes that the League's pure
formula amount should be the base from which to determine local
government aid increases. Those cities which are furthest from
the pure formula allocation amount should receive
proportionately more new dollars than those cities close to
their pure formula allocation.
EXAMPLE 1
1985 Aid Pure Formula Aid
City A $90,000 $200,000
City B $150,00.0 $200,000
• 1n Example 1 City A would receive a greater percentage of
new LGA dollar=_ than Citv B under the MLC approach. Under the
Opportunity to
reach the
"pure formula" at a faster
rate of
•
increase than
the League's
proposal. This memorandum will
explain, using
examples,
how the MLC's distribution
method
would be implemented.
Simply stated the MLC believes that the League's pure
formula amount should be the base from which to determine local
government aid increases. Those cities which are furthest from
the pure formula allocation amount should receive
proportionately more new dollars than those cities close to
their pure formula allocation.
EXAMPLE 1
1985 Aid Pure Formula Aid
City A $90,000 $200,000
City B $150,00.0 $200,000
• 1n Example 1 City A would receive a greater percentage of
new LGA dollar=_ than Citv B under the MLC approach. Under the
League's plan if loo more dollars were appropriated each city
would receive a 10% increase in aids until they reach their •
pure formula amount. Only when City B arrives at the pure
formula amount will its percentage growth rate slow. (Under
the League's proposal growth rates for cities that are at the
pare formula will only receive a 1% increase in aids each
year.)
Under the Municipal Legislative Commission's implementation
plan the increase in aids will be based on the difference
between what they would receive under the pure formula less
what they received in the current year.
EXAMPLE 2
1985 Aid Pure Formula Aid Difference
Citv A $90,000 $200,000•
$110,000
City B $150,000 $200,000 $50,000
One further step must be performed to determine the
percentage increase that will be applied to the difference
between the pure formula and the amount of current aid. This
factor is determined as follows:
Dollar Increase in LGA
AoDropriation _ Percentage to apply against
Pure Formula Cost Minus difference
Current Year Appropriation
Using 1985 as an example and assuming a 10% increase for
1986 aids the formula would be computed as follows:
- 1985 appropriation = $265 million
- 10% increase for 1986 aids = $26.5 million 26.5
- Cost of pure formula = $402 million 137 = 19.30
- Difference between pure formula and
1985 appropriation (402-265) _ $137 million
•
2.
If the increase were only 4.5% the formula would be:
• = 1985 appropriation = $265 million
4.5% increase for 1986 aids = $11.9 million
Cost of pure formula = $402 million
Difference (402-265) _ $137 million
K]
•
11.9
137 = 8.70
This percentaae is then applied against the difference
determined under Example 2. Example 3 illustrates this
procedure.
MLC IMPLEMENTATION EXAMPLE 3
(10% increase in appropriation)
City A City B
1985 Aid $90,000 $150,000
Pure Formula Aid 5200,000 $200,000
Difference $110,00 $50,000
`s Factor 19.3% 19.3%
S Increase (% Factor $21,230 $9,650
Multiplied by Difference)
1986 Aid 111,230 159,650
Increase 23.5% 6.4%
If the League of Minnesota Cities implementation were used
the distribution would be as follows:
Pure Formula A
Difference
LEAGUE IMPLEMENTATION EXAMPLE 4
(10� increase in appropriation)
City A City B
$90,000 $150,000
$200,000
3.
N/A
$200,000
N/A
0
f t
Factor 10% 10%
$ increase (a Factor $9,000 $15,000
Multiplied by 1985 Aid)
1986 Aid $99,000 $15,000
% Increase - 10% 10%
It is important to understand that all cities will arrive
at their pure formula amount on the same future date whether
the Legislature uses the Municipal Legislative Commission's
implementation or the League's implementation policy. The
difference being that those cities furthest from the pure
formula amount will receive greater percentage increases than
those cities closer to being fully funded. The MLC believes
this is a more equitable method of distributing new LGA dollars
because it reduces the present disparities more expeditiously
than the League's "equal percent" plan.
It must also be mentioned that the MLC has not taken a
position on the appropriation level. Both the League's and the
MLC's distribution formulas can be implemented if there is any
increase in the LGA appropriation.
The factors which will determine when all cities become
pure formula" cities depends on the amount of future
legislative aporooriations for local government aids and the
increase in the cost of funding the pure formula.
4.
•
I 1
U
'MUNICIPAL Suit Xerxes Avenue South
LEGISLATM Suite 1500
Bloomington. Minnesota 55431
COMMISSION (612) 338-6610
1986 LOCAL GOVERNMENT AIDS*
Assumes 4.5% Increase In Appropriation
*These numbers will vary slightly from computer runs due to rounding.
0
Pure
1986 LGA
Per Cent
1986 LGA
Per Cent
City
1985 LGA
Formula
League
Increase
MLC Plan
Increase
(000)
(000)
(000)
(000)
Austin
$2,666
$4,786
2,766
3.75
$2,850
6.9
Bloomington
2,402
4,738
2,492
3.75
2,605
8.4
Brooklyn Park
1,781
3,172
1,848
3.75
1,902
6.8
Coon Rapids
2,123
3,448
2,203
3.75
2,238
5.4
Crosby
205
495
213
3.75
230
12.2
Detroit Lakes
725
821
752
3.75
733
1.1
Wluth
10,528
25,510
10,923
3.75
11,831
12.4
dina
551
1,466
1,132
105.5
631
14.5
Eden Prairie
274
966
531
93.8
334
21.9
Ely
516
1,357
535
3.75
589
14.1
Jackson
403
802
418
3.75
438
8.7
Litchfield
502
807
521
3.75
529
5.4
Little Fork
63
197
65
3.75
75
19.0
Mankato
3,512
4,648
3,644
3.75
3,611
2.8
Maplewood
1,277
1,436
1,325
3.75
1,291
1.1
Minneapolis
58,041
76,538
60,218
3.75
59,650
2.8
Minnetonka
1,583
1,847
1,642
3.75
1,606
1.5
Moorhead
2,282
5,180
2,368
3.75
2,534
11.0
Silver Bay
155
909
161
3.75
221
42.6
St. Paul
33,863
45,689
35,133
3.75
34,891
3.0
Tracy
323
737
335
3.75
359
11.1
Walker
148
180
154
3.75
151
2.0
Winona
2,658
4,886
2,758
3.75
2,852
7.3
Woodbury
430
574
446
3.75
443
3.0
*These numbers will vary slightly from computer runs due to rounding.
0