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06/26/1986 - City Council Special• AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY JUNE 26, 1986 6:30 P.M. MUNICIPAL CENTER BUILDING I. ROLL CALL II. 6:30 INFORMATIONAL HEARING TO DISCUSS TAX INCREMENT FINANCING CRITERIA AND GUIDELINES (Economic Development Commission & Advisory Planning Commission III. 8:00 REVIEW OF LAND -USE DATA (Advisory Planning Commission) IV. REVIEW OF SITES REQUESTING COMPREHENSIVE GUIDE/LAND-USE REVISIONS (Advisory • Planning Commission) V. SUMMARY & ALTERNATIVES VI. DISCUSSION VII. ADJOURNMENT 0 MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS ALL MEMBERS OF THE ECONOMIC DEVELOPMENT COMMISSION ALL MEMBERS OF THE ADVISORY PLANNING COMMISSION FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 23, 1986 SUBJECT: SPECIAL CITY COUNCIL MEETING FOR JUNE 26, 1986 A special City Council meeting in the form of a double-header has been scheduled for this Thursday evening, June 26, beginning at 6:30 p.m. The purpose of this special City Council is 1) an informational hearing scheduled to discuss tax increment financing criteria and guidelines which involves the Economic Development Commission and any members of the Advisory Planning Commission who wish to attend and, at approximately 8:00 p.m., 2) a review of land -use data and those sites requesting a comprehensive guide plan land -use revision will be allowed to discuss their changes. The Advisory Planning Commission will be meeting jointly with the City Council for that portion of the meeting. Enclosed for the City Council and Advisory Planning Commission are complete packets of background information for the entire meeting on Thursday. For the Economic Development Commission, information is enclosed relative to the 6:30 meeting on the tax increment financing criteria and guidelines. If. members of the Economic Development Commission would like to stay for any portion of the land use meeting, they are certainly welcome. TAX INCREMENT FINANCING CRITERIA AND GUIDELINES The purpose of the informational hearing was established by the City Council to discuss tax increment financing criteria and guidelines. During the months of March and April, the Economic Development Commission held several meetings to discuss the merits of using tax increment financing as a business tool available for community development. There was action taken by the Economic Development Commission to recommend a resolution to the City Council in favor of using TIF as a business tool for Economic Development. The Economic Development Commission specifically stated in the resolution, a copy is attached for your review, that any and all TIF applications be reviewed and considered on a case-by-case basis. The City Council reviewed the resolution as passed by the Economic Development Commiss:.on and it was decided' that no action would be taken until the Commi-asion reviewed and established criteria and guidelines for the use of TIF. It was also determined that a public informational meeting would be held to consider certain guidelines and criteria with members of the City Council, Economic Development Commission, Advisory Planning _ Commission and public invited. The City Administrator has con- tacted Mr. David Sellergren who is a principal with the law firm of Daly, Larkin & Hoffman and is quite knowledgable on the structure and use of tax increm©nt financing. That law firm is not used by the City as bond counselor in any advisory capacity 03 -)for the issuance of bonds. Enclosed is a copy of the financial incentive guidelines that were prepared by the Economic Development Commission along with a copy of their minutes of the May 7, 1986, meeting. The City Admin- istrator will review the guidelines at the meeting on Thursday as a part of the presentation and comments that are planned by Mr. Sellergren. REVIEW OF LAND USE DATA AND COMPREHENSIVE GUIDE PLAN REVISIONS Enclosed is information that was prepared by the City Planning Department regarding agenda items III, and IV. for that portion of the meeting that begins at 8:00 p.m. /s/ Thomas L. Hedges City Administrator i 0 • Draft Financial incentive Guidelines The City of Eagan offers current and prospective businesses and residents an excellent mix of economic, geographic, social and service amenities. The City's exceptional location and transportation network provide ready access to the entire metropolitan area. Likewise, its diverse economy, well-developed infrastructure and high quality of life are important, positive incentives which are. integral to the City's economic development. The City sees the maintenance and enhancement of these amenities as its principal role in the public-private partnership for development. Moreover, the level of privately financed development activity reduces the need for City financial participation in most developments. The City will consider requests for public financial assistance on a case by case basis. While the merits of each proposal must be weighed individually, potential applicants should be prepared to demonstrate community benefit, applicant need and the unique characteristics of the development which warrant consideration for assistance. Applicants must meet all other City application procedures and requirements in a timely manner. Generally, the City will give consideration to projects which create or retain a substantial number of permanent, private sector jobs, enhance or preserve the tax base of the City, and/or 11�IiPl diversify the economic base of the community. The City's requirements for public incentive applications are attached. Numerical targets have been assigned in certain categories. t t l , CITY OF EAGAN ' PIMAN CIAL INCENTIVE GUIDELINES tj COMMERCIAL/INDUSTRIAL HOUSING INDUSTRIAL MOUSING LAID TAE INCREMENT REVENUE BONDS REVENUE BONDS NRI (NO P4. Economic DEVELOPER REQUIREMENTS: Redevelopment Develo sent -No. of ../reulned Jobs -No. of nee/retained Jobs ' Demonstrate -In ...... d is. base -Saturn of I. b.0 to bonds -Ho. of new/reulned Jobs -Hoot or eacted lo.. sad Benefit to City -El imin.aiun of blight -Increased tat baso -Increased tar base eadar.[a standard -No -Better land tau -Other -Project quality -Increased tax base -Other ,. -Only extraordinary costs -City participation - Uniqueness of -Removal of at ructures paid -Construction and cereal. -H needed to make Project -High -Nigh lead assembly -Normal developomemt costs equip..[ viable not financed Minimize City -Nov a.. will project -Project may net be specu- Risk be built. -gave... bonds/C.O. bonds I.tive - 15% pre-leas. -No -No -Revenue Bonds/C.D. bond Application -SS00 r.(.."his -5500 plus costs above -1500 -$500 -No Pee �. -Heat all City requirements -Meet all City requiremeats -Neat all City requirements -Meet all City raqui Cements -Meet all City Demonstrate -Preliminary plat or -Preliminary ' past or -Prolamine" Plat ar -Preliminary Plat or requirements Project Commitment site pl.. approval s4. plan approval site Pbn approval mita plan approval -Preliminary plat or before financing approval before financing approval before financing approval before fl.... Ing approval site approval befor financing approval -a 'e 'P. cniecrative '- Fee -No -Bsamant of City -Coeealc Ing eau only -Consulting cease only d.I.L. .minb[ra[lve axpsmo Minimum Project -Na -No (Target, $500,000) -3500,000 -No -Ne Size Bond -Assessment agreement A.... ..t agreement -Letter of cradle if public -Letter of credit if public -Possibly Guarantee -Ocher guarantee. Bond insurance/ offering offering Letter of credit 'i Payment of -Yat, during life of bond. Yes, during life of bond. o -1/B of 1% on outstanding -No ' Service Costs r principal balance Divulge interest -No-No -Receipt of application -Receipt of application -Ne in Financing gg ;7 `•� Equity Participation -City reserves right to-City reserves right to Lead -Mieleve of 10% -No (Developer) require require j\/;`c;ay Participation -Ne a No -go -Comenu B t� -,Y) City Pue en �=a Demonstrated -Favorable leverage -Favorable leverage -Consistent with Stars and -Consistent vlth Stats and -Pro forms Need -Pao forma -Pro Forma Federal r.qulr.. t. Federal requirements -Esc. of project - -Es[. of project costs -Esc. of project costs revenues and cost. (P Additional Comments Applicants should consider the following elements in preparing documentation for a proposal for public financial assistance. In some instances targets have been assigned. I. Demonstrate Benefit to City - Applicants should define the extent which their proposal will affect the following: A. Preservation or Expansion of Current Employment Base 1. Jobs Retained 2. Jobs Created 3. Nature of Jobs Retained or Created B. Diversification of Employment Base 1. Jobs Created 2. Nature of Jobs Created 3. Relationship of Enterprise to Current Economic Base C. Known Benefits 1. Property Tax Enhancement (Target: 12:1 Return of Tax Base to Bonds) . 2. Local Economic Impact 3. Potential for Expansion and Spin -Off Development D. Known Disbenefits 1. Traffic and Road Impacts 2. Utility Impacts 3. Service Impacts 4. Environmental Impacts E. Potential Risks F. Consistency with City Planning - Goals and Philosophy 1. Relationship to Proximate Land Uses II. Uniqueness of Project - Applicants should identify those characteristics of their proposal which set it apart from ordinary developments in cost or nature such that public participation would be warranted. A. Extraordinary Development Costs Due to Site Condition or Preexisting Use. B. Removal of Blight or Substandard Structures C. Unusual Physical Landforms or Conditions 0 III. Demonstrated Need - Applicants should provide financial and other information as requested by the City and sufficient C` to demonstrate the need for public financial assistance for development of the proposed project. A. Pro Forma B. Estimate of Project Revenues and Costs C. Applicable State and Federal Requirements D. Business Plan - Per Attachment (Being Developed) E. Marketing Plan - Per Attachment (Being Developed) F. Leverage (Target: 10:1 Private/Public Ratio) - MEMO TO: CHAIRMAN WENZEL AND ALL MEMBERS OF THE ECONOMIC DEVELOPMENT COMMISSION FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 6, 1986 SUBJECT: It was the decision of Chairman Wenzel that a regular meeting would not be held during the month of June after advisement from this office that items for discussion were minimal and further, that a joint meeting with the City Council has been scheduled for June 26 to review the tax increment financing criteria guidelines. Please be advised that the City Council has scheduled a special meeting for 6:30 p.m., Thursday, June 26, to discuss the tax increment financing guidelines criteria that was recently established by the Economic Development Commission. A copy is attached for your review. The City Council has asked that two or three individuals expressing various viewpoints about tax increment financing be present at the informational meeting on Thursday, June 26, to discuss and answer questions about the use of tax increment financing as a business tool. The City Administrator will review the guidelines as presented by the Economic Development Commission. This meeting is open to the public and the City Council will accept public testimony if there are questions. It is anticipated that the meeting will last from 6:30 until approximately 8:00 p.m. The Advisory Planning Commission has been invited to attend. If any member of the Economic Development Commission has any comments regarding the guidelines and information that has been prepared and submitted to the City Council for their review, please contact this office and leave word with either Jon or myself. If you are unable to attend this joint meeting scheduled for June 26, please contact this office and notify Karen. c City Administ ator Enclosure TLH/kf • AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY JUNE 26, 1986 6:30 P.M. MUNICIPAL CENTER BUILDING I. ROLL CALL II. 6:30 INFORMATIONAL HEARING TO DISCUSS TAX INCREMENT FINANCING CRITERIA AND GUIDELINES (Economic Development Commission & Advisory Planning Commission. III. 8:00 REVIEW OF LAND=USE DATA (Advisory Planning Commission.) . IV. REVIEW OF SITES REQUESTING COMPREHENSIVE GUIDE/LAND-USE REVISIONS (Advisory Planning Commission) V. SUMMARY & ALTERNATIVES VI. DISCUSSION VII. ADJOURNMENT MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS ALL MEMBERS OF THE ECONOMIC DEVELOPMENT COMMISSION ALL MEMBERS OF THE ADVISORY PLANNING COMMISSION FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 23, 1986 SUBJECT: SPECIAL CITY COUNCIL MEETING FOR JUNE 26, 1986 A special City Council meeting in the form of a double-header has been scheduled for this Thursday evening, June 26, beginning at 6:30 p.m. The purpose of this special City Council is 1) an informational hearing scheduled to discuss tax increment financing criteria and guidelines which involves the Economic Development Commission and any members of the Advisory Planning Commission who wish to attend and, at approximately 8:00 p.m., 2) a review of land -use data and those sites requesting a comprehensive guide plan land -use revision will be allowed to discuss their changes. The Advisory Planning Commission will be meeting jointly with the City Council for that portion of the meeting. Enclosed for the City Council and Advisory Planning Commission are complete packets of background information for the entire meeting on Thursday. For the Economic Development Commission, information is enclosed relative to the 6:30 meeting on the tax increment financing criteria and guidelines. If members of the Economic Development Commission would like to stay for any portion of the land use meeting, they are certainly welcome. TAX INCREMENT FINANCING CRITERIA AND GUIDELINES The purpose of the informational hearing was established by the City Council to discuss tax increment financing criteria and guidelines. During the months of March and April, the Economic Development Commission held several meetings to discuss the merits of using tax increment financing as a business tool available for community development. There was action taken by the Economic Development Commission to recommend a resolution to the City Council in favor of using TIF as a business tool for Economic Development. The Economic Development Commission specifically stated in the resolution, a copy is attached for your review, that any and all TIF applications be reviewed and considered on a case-by-case basis. The City Council reviewed the resolution as passed by the Economic Development Commission and it was decided that no action would be taken until the Commission reviewed and established criteria and guidelines for the use of TIF. It was also determined that a public informational meeting would be held to consider certain guidelines and criteria with members of the City Council, Economic Development Commission, Advisory Planning Commission and public invited. The City Administrator has con- tacted Mr. David Sellergren who is a principal with the law firm of Daly, Larkin & Hoffman and is quite knowledgable on the structure and use of tax increment financing. That law firm is not used by the City as bond counsel or in any advisory capacity for the issuance of bonds. Enclosed is a copy of the financial incentive guidelines that were prepared by the Economic Development Commission along with a copy of their minutes of the May 7, 1986, meeting. The City Admin- istrator will review the guidelines at the meeting on Thursday as a part of the presentation and comments that are planned by Mr. Sellergren. REVIEW OF LAND USE DATA AND COMPREHENSIVE GUIDE PLAN REVISIONS Enclosed is information that wa: Department regarding agenda items the meeting that begins at 8:00 p. /s/ Thomas L. Hedges City Administrator prepared by the City Planning III. and IV. for that portion of M. I MINUTES OF THE ECONOMIC DEVELOPMENT COMMISSION Eagan, Minnesota May 7, 1986 A meeting of the City of Eagan's Economic Development Commission was held on Wednesday, May 7, 1986, at the Eagan Municipal Center Building. Present were Commission members Wenzel, Lee, Kleimola, Shields, King, Traynor and Hedges. Commission members Kraning and Stevenson were absent. Also present were Mayor Blomquist, Chamber President Hauge, Chamber Director Bill Escher, Administrative Assistant Hohenstein, and Administrative Intern Johannes. Chairman Wenzel officially recognized Bob Barrett, Chairman of the Mankato State University Urban Studies Institute and several students who were training and auditing various municipal government operations within the City of Eagan the morning of May 7. The Urban Studies class attended most of the Economic Development Commission meeting. MINUTES The minutes of the April 2, 1986, regular Economic Development Commission meeting were reviewed and upon motion by Lee, seconded by Shields, with all members voting in favor, the minutes were approved as presented. COMMUNITY UPDATE City Planner Runkle provided an update of residential commercial and industrial activities as occurring during 1986. He stated that an extraordinary amount of growth activity has occurred within the City creating C a higher assessed valuation and also many new residents within the Community. TAX INCREMENT FINANCING CRITERIA City Administrator Hedges reported that the City Council reviewed the tax increment financing resolution that was prepared and adopted by the Economic Development Commission at their April 15 City Council meeting. He reported that Chairman Wenzel along with members of the Commission were present and answered various questions relative to the tax increment financing resolution. He then stated that the Council has continued the action on the resolution asking that the Economic Development Commission review and prepare a list of criteria for giving consideration and tax increment financing applications. The City Administrator reported that it is the Council's intention that criteria not be written as criteria for approval of TIF; however, that minimum criteria be prepared for the processing of tax increment financing applications. He then reviewed some written material that was prepared by Administrative Assistant Hohenstein that targets certain proposed tax increment financing guidelines. The City Administrator then reviewed a matrix that compares criteria for TIF with industrial development revenue bond financing and other types of special business financing such as housing rental applications. Members of the Commission requested that the equity participation and bond guarantee sections be upgraded as proposed. After further discussion on the matter and in a motion by Commission member Kleimola, seconded by Commission member Lee, with all members voting in favor, +� the City Administrator was directed to prepare a final draft of the TIF guideline criteria and present the same to the City Council for review with the understanding that the Commission reserves the right for a final review prior to City Council action following an informational public hearing to be scheduled in June. SISTER CITY PROGRAM Commission member Kleimola commented on articles that he read from a public management magazine provided by the City Administrator regarding City's opportunities in worldwide economic development. He suggested that the Commission review a sister city program that would provide some potential international incentives recognizing the proximity to the airport and world trade center. HIGH SCHOOL BOND ISSUE Commission member Traynor expressed his strong support and interest in when the high-school bond referendum will be considered within the City of Eagan. He further stated that with the Independent School District 196 election approaching, it would be advantageous for Commission members to express their concerns to the School Board candidates regarding Eagan's economic development position favoring a highschool. p.m. I OTHER BUSINESS There was no other business and the meeting was adjourned at 1:30 0411:1 Dated Chairperson Secretary Draft Financial Incentive Guidelines The City of Eagan offers current and prospective businesses and residents an excellent mix of economic, geographic, social and service amenities. The City's exceptional location and transportation network provide ready access to the entire metropolitan area. Likewise, its diverse economy, well-developed infrastructure and high quality of life are important, positive incentives which are integral to the City's economic development. The City sees the maintenance and enhancement of these amenities as its principal role in the public-private partnership for development. Moreover, the level of privately financed development activity reduces the need for City financial participation in most developments. The City will consider requests for public financial assistance on a case by case basis. While the merits of each proposal must be weighed individually, potential applicants should be prepared to demonstrate community benefit, applicant need and the unique characteristics of the development which warrant consideration for assistance. Applicants must meet all other City application procedures and requirements in a timely manner. Generally, the City will give consideration to projects which create or retain a substantial number of permanent, private E sector jobs, enhance or preserve the tax base of the City, and/or diversify the economic base of the community. The City's requirements for public incentive applications are attached. Numerical targets have been assigned in certain categories. ;7 :: CITY OF EAGAN FINANCIAL INCENTIVE GUIDELINES - COMMERCIAL/INDUSTRIAL HOUSING INDUSTRIAL HOUSING LAD TAX INCREMENT REVENUE BONDS REVENUE BONDS MRITE DO (NO POLI Economic DEVELOPER REQUIREMENTS, Redevelopment Develo ment -No. of new/retained Jobs -No. of new/re E.tned Jobe - Demonstrate -Increased las base -Return of us base to bonds -No. of new/retained Jobs -Heat at exceed low and Benefit to City -Elimination of blight -Increased tax base -Increased is. bas. moderate standard -No -Beicer land taw -0Eher -Project quality -Increased tea base -Ocher -Only extraordinary costs -City participation _ Uniqueness of -Removal of structures paid -Construction and certain -No needed to make pro - Project -Nigh land auembLy -Normal development[ costs equipment viable not financed Minimize City -How roan will project -Project may not be .pacu- Risk be built. -Revenue bands/G.O. bonds I.tivs - 75% pre -lease -No -No " -Revenue Bonds/G.O. bond Application -$500 refundable -$500 plus ..at. above -$500 -$500 -No Fee -Meet all City requirements -Meet all City requirements -Nest all City require menu -Meet all City requirement. -Meet all City Demonstrate -Preliminary pia[ or -Preliminary • Pl.t at -Pre Listnary Plat or -Preliminary Plat or requirement. • Project Commitment Ate plan approval it. plan approval it. plan approval alt. plan approval -Preliminary plat or .� before financing approval before financing approval before financing approval before finanC ing approval Site approval befer, financing approval -r "\ V�"Lnietratiwe Fee -NO -Reimbursement of Clry -Consulting costa only -Consulting coati only -No _ a doiniastative expense. Minimum Project -No -No (Target. $500,000) -3500,000 -No -No Size ' Bond -A.aea..ent agreement -Assessment agreement -Letter of credit If public -Letter of credit if public -Possibly - Guarantee -Ocher gas. untie. -Bond insurance/ offering offering Latest of credit • Payment of -Ye., during life of bonds -Ye., during life of bonds No -0/8 of IT, on tau utanding -No ' Service Costs principal balance Divulge Interest -No No Receipt of application -Receipt of application -No - in Financing °J ;•j Equity Participation -City re• ewes right to City reserves right to Land �um Nnimof 10% -No (Developer) require require 1\/ •Yy Participation -No Na No oto -COM..aura 'rh s� Ci[y Part '-:on Demonstrated -Favorable lavers, -Pavotable leve rage -Consistent with Blau and -Com b[en[ wl th Su to and -Pro [erme Need -Peo form. -pas Forme Federal requirements Federal .quite... is -Eat. of project .. -Est. of project Co.,, -Eat. of project COME. revenues and coats Additional Comments Applicants should consider the following elements in preparing documentation for a proposal for public financial assistance. In some instances targets nave been assigned. I. Demonstrate Benefit to City - Applicants should define the extent which their proposal will affect the following: A. Preservation or Expansion of Current Employment Base 1. Jobs Retained 2. Jobs Created 3. Nature of Jobs Retained or Created B. Diversification of Employment Base 1. Jobs Created 2. Nature of Jobs Created 3. Relationship of Enterprise to Current Economic Base C. Known Benefits 1. Property Tax Enhancement (Target: 12:1 Return of Tax Base to Bonds) F,l 2. Local Economic Impact 3. Potential for Expansion and Spin -Off Development D. Known Disbenefits 1. Traffic and Road Impacts 2. Utility Impacts 3. Service Impacts 4. Environmental Impacts E. Potential Risks F. Consistency with City Planning - Goals and Philosophy 1. Relationship to Proximate Land Uses II. Uniqueness of Project - Applicants should identify those characteristics of their proposal which set it apart from ordinary developments in cost or nature such that public participation would be warranted. A. Extraordinary Development Costs Due to Site Condition or Preexisting Use. B. Removal of Blight or Substandard Structures =:'`y C. Unusual Physical Landforms or Conditions 0 III. Demonstrated Need - Applicants should provide financial and other information as requested by the City and sufficient to demonstrate the need for public financial assistance for development of the proposed project. A. Pro Forma B. Estimate of Project Revenues and Costs C. ,Applicable State and Federal Requirements D. Business Plan - Per Attachment (Being Developed) E. Marketing Plan - Per Attachment (Being Developed) F. Leverage (Target: 10:1 Private/Public Ratio) - F7� AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY JUNE 26, 1986 6:30 P.M. MUNICIPAL CENTER BUILDING I. ROLL CALL II. 6:30 INFORMATIONAL HEARING TO DISCUSS TAX INCREMENT FINANCING CRITERIA AND GUIDELINES (Economic Development Commission & Advisory Planning Commission III. 8:00 REVIEW OF LAND -USE DATA (Advisory Planning.Commission) IV. REVIEW OF SITES REQUESTING COMPREHENSIVE GUIDE/LAND-USE REVISIONS (Advisory Planning Commission) V. SUMMARY & ALTERNATIVES VI. DISCUSSION VII. ADJOURNMENT June 25, 1986 HONORABLE, MAYOR (,, CITY COUNCILT-7' ,M MRS 38_3O PILOT KNOB ROAD FA: EAGAN URBAN LAND DEMAND/SUPPLY Demand With Demand Overage Supply 1980-192 1980-1920 to 1990 39190 4,785 . 129846 DEMAND: EAGAN Demand Total With Demand Demand Overage Supply 1990-2000 1980-2000 1980-2000 . to 2000 1,885 59075 6,018 12,846 Streets and Residential Commercial Industrial Public, Alleys Parks Total 1980-1990 11910 100 -400- . 55, 550 175 -3;190 1990-2000 1,120 200 200 i5 260 90 1,885 1980-2000 demand with five-year overage = 6,018 acres (supply = 12,846 acres). The land supply figure reflects the net developable area, inside the 'local comprehensive plan/urban service line, excluding water, Wetlands, floodplains, any bedrock and any signed -up agriculture preserve lands. The Metropolitan Councils land supply figure includes platted but undeveloped lots as of 1980. Change Change 1970 1980 1990 2000 1980-1990 1990-2000 Population 10,398 209700 40,000 509000 19000 109000 Households 29607 6,824 159400 209,000 89576 4,600 Employment 51915 8,400 20,000 27,000 11,600 79000 URBAN LAND DEMAND/SUPPLY Demand With Demand Overage Supply 1980-192 1980-1920 to 1990 39190 4,785 . 129846 DEMAND: EAGAN Demand Total With Demand Demand Overage Supply 1990-2000 1980-2000 1980-2000 . to 2000 1,885 59075 6,018 12,846 Streets and Residential Commercial Industrial Public, Alleys Parks Total 1980-1990 11910 100 -400- . 55, 550 175 -3;190 1990-2000 1,120 200 200 i5 260 90 1,885 1980-2000 demand with five-year overage = 6,018 acres (supply = 12,846 acres). The land supply figure reflects the net developable area, inside the 'local comprehensive plan/urban service line, excluding water, Wetlands, floodplains, any bedrock and any signed -up agriculture preserve lands. The Metropolitan Councils land supply figure includes platted but undeveloped lots as of 1980. CaMMERRCIAL PLANNING STUDY - CITY OF EAGAN Area: "A" Location East of Dodd Road (T.H. 149) North of Lone Oak Road. Issue: Should the remainder of this area be designated for Canmercial Planned Development use similar to Laukka-Heck, or should residential neighborhoods or other uses be designated? Planning Concerns: 1. Small isolated residential neighborhoods generally are not desirable. 2. There are approximately 450 acres designated for Cam ercial in the Laukka-Beck P.D. The remaining area would add about 200 acres for a total of 650 acres of Camrercial, of which Northwest Airlines would control 156 acres. 3. Most of the area east of area "A", in Inver Grove Heights, is designated for residential use. 4. The Laukka-Beck P.D. does not provide for a street connection to area "A". 5. Current R-4 zoning in area "A" was intended to create a buffer, but is not of a practical shape to allow development. Alternatives: 1. To attempt to create a residential neighborhood of mixed residential use in area "A". This could be planned and developed with the Inver Grove Heights area, or: 2. To designate the entire area for Camrercial Planned Development. So w 0, 19' 1 %W. 1A r i 'a NO "SMO Was l oi 1A r i 'a NO "SMO Was Area: "C" Location: NE quadrant of I -35E and Yankee Doodle Road. Issue: Should this area continue to be designated for multiple residential or should it be redesignated for commercial uses. Planning Concerns: 1. If the area remains designated for multiple residential use, the entire area (220 acres) should be so designated so that a viable neighborhood can be created with, the possible exception of the area adjacent to the diamond interchange. 2. If the area is designated for Com ercial, it should be dominated by low traffic generators such as office park uses because of the high traffic volumes already committed to Yankee Doodle Road via the Town Centre development. 3. Redesignation would commit an additional 220 acres to Ccamercial. Alternatives: 1. Continue with the multiple residential designation. 2. Redesignate for a CamTercial Planned Development. A w�# w1rxA A mm I@ ARM mm - WIN wilw"WOW 0 m 7-'fV ate., b , I uewqmm Area: "E" Location: South of Yankee Square Planned Development between I -35E and Federal Drive. Issues: Should this approximate 12 acre area lying south of Yankee Square remain designated for low density multiple residential or should it be designated for limited business uses similar to the adjacent development to the north. Planning Concerns and Comments: 1. The property lies above I -35E at an elevation generally consistent with Yankee Square. 2. The property is quite visible from I -35E, particularly from the south. Alternatives: 1. To remain designated for low density multiple dwelling complex, or: 2. To be redesignated for an expansion of the Yankee Square Office Complex (L.B.). Area: "F" Location: North of Deerwood Drive between I -35E and Pilot Knob Road., Issue: Should this area remain designated for multiple residential, or should some of the area be designated for Carmn?rcial. Planning Concerns and Comments: 1. There have been two planning reports/studies of this area proposed by staff during the past few years (1983 & 1984). Approximately 40 acres has been designated (C.T.C. in 1984) for L. B. 2. The reports generally recommended mixed residential uses with the possiblity of some Limited Business in the Northern tier of the area. 3. The Northern area appears to be the area of greatest concern and potential at this time where the owners have msde suggest- ions for high-rise apartment, motel, restuarant and corporate home office uses. Alternatives: 1. L.B.designation on the Northern area (north of Englert Road) with mixed residential designations over the remainder, or: 2. Mixed residential designation overall. -- MEMORANDUM -- TO: Dale Runkle, City Planner FROM: John S. Voss SUBJ.: Appropriate Land Use at Violet Lane/Pilot Knob Road Area CTC Business Campus and Anderson Development Application DATE: November 21,.1984 BACKGROUND: At the October 23, 1984 Planning Commission meeting, an application from CTC Business Campus for a Preliminary Plat and rezoning were considered. At that time, the Planning Commission raised questions related to the appropriate land use in Violet Lane/Pilot Knob Road area. Also, the Planning Commission re- quested the staff to look at the overall inventory of commercial and industrial land that would be suitable for corporate headquarters. This memorandum is in response to those concerns. APPROPRIATE LAND USE ATVIOLET LANE/PILOT KNOB ROAD: In November of 1983, a Planning Study was male of the triangular area ea bounded by I -35E on the west,. Deerwood Drive on the south and Pilot Knob Road on the east. In the Study, this area was generally divided into a north, central and southern area. Comments from that Study, related to the northern area which would include the -Violet Lane/Pilot Knob Road area, were in part as follows-; The nox&enn portion o6 .the study area is genenatty chanactenized by .the deveeopment o6 a hew 6.i.ngee 6amity homed with.a targe amount o6 vacant Land which .i,6 g enema t y aotting, w th s catte ted atand6. o6 txeea. The only malo,% vehi,c.utan accros to thio area .i,a PiZot Knob Road. At pxment, there arse .two .intehaecting stneeU - V-ioeet Lane and Enge.ehant Road with some additionatt, private accee6e.6 dihe.etey onto P.ieot Knob Road. The exulting ,intmect on 6.theet6 ane 6paced about one-quanteh (1/4) mi.ee apah t. It woued be de6.urabte to main- .ta,in this zpacing zo that .in tki.6 area, .the only three dilce.ct ac- ce.se6 woaed be V.i.otet Lane, EngeZhant Road and the City HaU acce66. It woued ae6o be de6.ihbaQe to cAeats..an .i.ntenna2 J0_ocak &tAeet connec- tion between theze three accmzea. The s.ingte 6amiity homeb which exi6.t .in .the area genenaC2y ave4 ge 6aom 10 to 20 yeana .in age and arse expected to exist bon the next sevenat. years. Aa ouch, .it again wowed be de6i4abee to have tezidentiat development ala .the paedominen,t u6e .in thio anew which wooed be compatibte with the existing s.ingte 6amiey homez. The R-11 dezignation appeana to be caucect bon th.i.6 area a.ince it woued pehmi.t the ceu6.ten ing o6 tow-dena.i ty tez identia . Memorandum to: Dale Runkle From John S. Voss November 21, 1984 Page 2 deveZopment on, additional sdn9te 6amiZy homes. AZ6o, .i6•ptopeA access coaed be pnovided, thexe may be some po.tenti,a.E bon. Limited Business use along PiZot Knob Road. Othex types o6 cmmmeAcia.Z, howeveA, shoukd be nes•isted; paAti.cukaAZy, that which would generate high vo•Zume.6 06 t4a.66.ic. Since that time, additional information has been provided by the Minnesota Depart- ment of Transportation. Additional homes- have been taken for I -35E right-of-way over that which was anticipated a year ago when the above report was drafted. Now, only one Cl) residence will exist on the north side of Violet Lane and this would be located at the intersection of Violet Lane and Pilot Knob Road. This lot would be the only private property north of Violet Lane. All of the other property has been taken for interstate right-of-way. Also, this general area will be impacted by noise from Pilot Knob Road and Interstate 35E. An exit ramp will be located near the northern boundary of the private property that will remain. Also, Pilot Knob Road will be "bridged" over I -35E and the eleva- tion of Pilot Knob Road will be very near the elevation that exists today. This exposure to high volumes of traffic and high noise levels indicates that this would not be a particularly desirable area for residential development. The proposed CTC Business Campus development, which is a high-tech industry, could be a suitable use for this area if it was properly developed. This use would be in keeping with the Limited Business type of use that was alluded to in the above report. The remaining property along Violet Lane then also could be con- verted, in time, to other Limited Business uses. In this regard, the area north of the pond would be developed with Limited.Business uses and the area to the south would be developed with residential uses wherein the ponding would gen- erally be the area where the transition would be made from Limited Business to the north to residential development to the south. In addition, a traffic study should be done to insure that the volume of traffic generated by the CTC Business Campus could properly be channelled onto Pilot Knob Road. The CTC plan proposes an access to Crestridge Lane. It may be better to exit this property at Violet Lane wherein a traffic signal will probably be installed at some future date because this is also the Pilot Knob Road inter- section with Duckwood Drive which is expected to serve a major shopping center. F COMMERCIAL AND INDUSTR R CORPORATE HEAD - DARTERS: A general survey of land suitable for corporate headquarters reveals that there is a considerable variety of commercial and industrial land avail- able in the City for corporate headquarters. Some of the locations that were considered by COMSERV included the area across Diffley Road from Metcalf Junior High School and the northwest quadrant of I -35E and Cliff Road. Other areas include portions of the Gopher Smelting property, east of Elrene Road and the Dayton -Hudson property which is located at the northeast boundary of the City. The proposed CTC campus site would be well-suited for a corporate headquarters, however, it should not be rezoned solely because there is not other suitable land available in the City. To the contrary, there are considerable amounts ® Memorandum to: Dale Runkle From:'John S. Voss November 21, 1984 Page 3 of suitable commercial and industrial land either zoned or designated on the Comprehensive Plan,which would suit this purpose very well. JSV lei 0 rpod II aw- I ^� f OF4011MIM I 11; oil --!F4 lei 0 rpod II aw- I ^� f OF4011MIM I 11; Area: "G" Location: NE quadrant of I -35E and Diffley Road. Issue: Should this are be redesignated for a Sub -regional Shopping Center as proposed by the property owner. Planning Concerns: 1. There would be approximately 120 acres designated for a sub - regional center between Diffley and Deerwood Drive. 2. This development would be adjacent to a new elementary school, otherwise the adjacent property is undeveloped. These would be a concern about compatibility with the school. 3. The site could be designated specifically for R.S.C. (regional center) development and otherwise not permit c= ercial if this development did not occur. 4. This development could bring some retail uses to Eagan not otherwise found in the City , i.e. major clothing stores, as well as additional tax base. 5. A sub -regional center could otherwise be developed on the Laukka-Beck site and some of the same uses will be developed at other centers within the City. Alternatives: 1. To designate the area (120 acres) for a sub -regional center, or 2. To designate the area for multiple residential with the possibility of Commercial adjacent to the interchange. 'F--7- w Area: 'III. Location: NW quadrant of Rahn Road and Cliff Road. Issue: Should this 20 acre area be designated for commercial use or remain o-111 ( 6 to 12 units per acre). Comments and Considerations: 1. The area is generally surrounded by other designations, i.e. L.B., Parks, N.B., R.B. and Public Facilities. The park would be compatible with multiple dwelling use. 2. All of the other Cliff Road frontage between Cedar Avenue (T.H. 77) and I -35E is zoned for commrcial or public use. Alternatives: 1. To continue with multiple dwelling designation, or: 2. To redesignate to a commercial designation. r74 -mw 1> , Fzdull� :N :A� Area: "L" Location: Southeast corner of City along T.H. 3. Issue: What should be the disposition of Commercial and Industrial zoning and development in this area? Planning Concerns and Comments: 1. Spot commercial zoning and development such as the few scattered businesses in Eagan and Rosemount along T.H. 3 in this area should not be expanded. 2. There does not appeat to be a great need for Commercial and Industrial uses in this area. Park use and residential is the dominant land use and this would .not be compatible with commercial and industrial uses. 3. The area east of T.H. 3 should be planned with Inver Grove Heights. Their Comprehensive Plan proposes Agriculture and single family uses with sanitary sewer service several years in the future. It .4. moo o", /f /2yy�^,�v I lo�er� i.. K•v�c �'s•-.� �r�5s w P Ci�S7�f (�W cf- • Ce � e �aa� �� ���F, k e. /Y IN40 jjiuo l vf�( �o / • AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY JUNE 26, 1986 6:30 P.M. MUNICIPAL CENTER BUILDING I. ROLL CALL II. 6:30 INFORMATIONAL HEARING TO DISCUSS TAX INCREMENT FINANCING CRITERIA AND GUIDELINES (Economic Development Commission & Advisory Planning Commission III. 8:00 REVIEW OF LAND -USE DATA (Advisory Planning Commission) IV. REVIEW OF SITES REQUESTING COMPREHENSIVE GUIDE/LAND-USE REVISIONS (Advisory • Planning Commission) V. SUMMARY & ALTERNATIVES VI. DISCUSSION VII. ADJOURNMENT 0 MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS ALL MEMBERS OF THE ECONOMIC DEVELOPMENT COMMISSION ALL MEMBERS OF THE ADVISORY PLANNING COMMISSION FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 23, 1986 SUBJECT: SPECIAL CITY COUNCIL MEETING FOR JUNE 26, 1986 A special City Council meeting in the form of a double-header has been scheduled for this Thursday evening, June 26, beginning at 6:30 p.m. The purpose of this special City Council is 1) an informational hearing scheduled to discuss tax increment financing criteria and guidelines which involves the Economic Development Commission and any members of the Advisory Planning Commission who wish to attend and, at approximately 8:00 p.m., 2) a review of land -use data and those sites requesting a comprehensive guide plan land -use revision will be allowed to discuss their changes. The Advisory Planning Commission will be meeting jointly with the City Council for that portion of the meeting. Enclosed for the City Council and Advisory Planning Commission are complete packets of background information for the entire meeting on Thursday. For the Economic Development Commission, information is enclosed relative to the 6:30 meeting on the tax increment financing criteria and guidelines. If. members of the Economic Development Commission would like to stay for any portion of the land use meeting, they are certainly welcome. TAX INCREMENT FINANCING CRITERIA AND GUIDELINES The purpose of the informational hearing was established by the City Council to discuss tax increment financing criteria and guidelines. During the months of March and April, the Economic Development Commission held several meetings to discuss the merits of using tax increment financing as a business tool available for community development. There was action taken by the Economic Development Commission to recommend a resolution to the City Council in favor of using TIF as a business tool for Economic Development. The Economic Development Commission specifically stated in the resolution, a copy is attached for your review, that any and all TIF applications be reviewed and considered on a case-by-case basis. The City Council reviewed the resolution as passed by the Economic Development Commiss:.on and it was decided' that no action would be taken until the Commi-asion reviewed and established criteria and guidelines for the use of TIF. It was also determined that a public informational meeting would be held to consider certain guidelines and criteria with members of the City Council, Economic Development Commission, Advisory Planning _ Commission and public invited. The City Administrator has con- tacted Mr. David Sellergren who is a principal with the law firm of Daly, Larkin & Hoffman and is quite knowledgable on the structure and use of tax increm©nt financing. That law firm is not used by the City as bond counselor in any advisory capacity 03 -)for the issuance of bonds. Enclosed is a copy of the financial incentive guidelines that were prepared by the Economic Development Commission along with a copy of their minutes of the May 7, 1986, meeting. The City Admin- istrator will review the guidelines at the meeting on Thursday as a part of the presentation and comments that are planned by Mr. Sellergren. REVIEW OF LAND USE DATA AND COMPREHENSIVE GUIDE PLAN REVISIONS Enclosed is information that was prepared by the City Planning Department regarding agenda items III, and IV. for that portion of the meeting that begins at 8:00 p.m. /s/ Thomas L. Hedges City Administrator i 0 • Draft Financial incentive Guidelines The City of Eagan offers current and prospective businesses and residents an excellent mix of economic, geographic, social and service amenities. The City's exceptional location and transportation network provide ready access to the entire metropolitan area. Likewise, its diverse economy, well-developed infrastructure and high quality of life are important, positive incentives which are. integral to the City's economic development. The City sees the maintenance and enhancement of these amenities as its principal role in the public-private partnership for development. Moreover, the level of privately financed development activity reduces the need for City financial participation in most developments. The City will consider requests for public financial assistance on a case by case basis. While the merits of each proposal must be weighed individually, potential applicants should be prepared to demonstrate community benefit, applicant need and the unique characteristics of the development which warrant consideration for assistance. Applicants must meet all other City application procedures and requirements in a timely manner. Generally, the City will give consideration to projects which create or retain a substantial number of permanent, private sector jobs, enhance or preserve the tax base of the City, and/or 11�IiPl diversify the economic base of the community. The City's requirements for public incentive applications are attached. Numerical targets have been assigned in certain categories. t t l , CITY OF EAGAN ' PIMAN CIAL INCENTIVE GUIDELINES tj COMMERCIAL/INDUSTRIAL HOUSING INDUSTRIAL MOUSING LAID TAE INCREMENT REVENUE BONDS REVENUE BONDS NRI (NO P4. Economic DEVELOPER REQUIREMENTS: Redevelopment Develo sent -No. of ../reulned Jobs -No. of nee/retained Jobs ' Demonstrate -In ...... d is. base -Saturn of I. b.0 to bonds -Ho. of new/reulned Jobs -Hoot or eacted lo.. sad Benefit to City -El imin.aiun of blight -Increased tat baso -Increased tar base eadar.[a standard -No -Better land tau -Other -Project quality -Increased tax base -Other ,. -Only extraordinary costs -City participation - Uniqueness of -Removal of at ructures paid -Construction and cereal. -H needed to make Project -High -Nigh lead assembly -Normal developomemt costs equip..[ viable not financed Minimize City -Nov a.. will project -Project may net be specu- Risk be built. -gave... bonds/C.O. bonds I.tive - 15% pre-leas. -No -No -Revenue Bonds/C.D. bond Application -SS00 r.(.."his -5500 plus costs above -1500 -$500 -No Pee �. -Heat all City requirements -Meet all City requiremeats -Neat all City requirements -Meet all City raqui Cements -Meet all City Demonstrate -Preliminary plat or -Preliminary ' past or -Prolamine" Plat ar -Preliminary Plat or requirements Project Commitment site pl.. approval s4. plan approval site Pbn approval mita plan approval -Preliminary plat or before financing approval before financing approval before financing approval before fl.... Ing approval site approval befor financing approval -a 'e 'P. cniecrative '- Fee -No -Bsamant of City -Coeealc Ing eau only -Consulting cease only d.I.L. .minb[ra[lve axpsmo Minimum Project -Na -No (Target, $500,000) -3500,000 -No -Ne Size Bond -Assessment agreement A.... ..t agreement -Letter of cradle if public -Letter of credit if public -Possibly Guarantee -Ocher guarantee. Bond insurance/ offering offering Letter of credit 'i Payment of -Yat, during life of bond. Yes, during life of bond. o -1/B of 1% on outstanding -No ' Service Costs r principal balance Divulge interest -No-No -Receipt of application -Receipt of application -Ne in Financing gg ;7 `•� Equity Participation -City reserves right to-City reserves right to Lead -Mieleve of 10% -No (Developer) require require j\/;`c;ay Participation -Ne a No -go -Comenu B t� -,Y) City Pue en �=a Demonstrated -Favorable leverage -Favorable leverage -Consistent with Stars and -Consistent vlth Stats and -Pro forms Need -Pao forma -Pro Forma Federal r.qulr.. t. Federal requirements -Esc. of project - -Es[. of project costs -Esc. of project costs revenues and cost. (P Additional Comments Applicants should consider the following elements in preparing documentation for a proposal for public financial assistance. In some instances targets have been assigned. I. Demonstrate Benefit to City - Applicants should define the extent which their proposal will affect the following: A. Preservation or Expansion of Current Employment Base 1. Jobs Retained 2. Jobs Created 3. Nature of Jobs Retained or Created B. Diversification of Employment Base 1. Jobs Created 2. Nature of Jobs Created 3. Relationship of Enterprise to Current Economic Base C. Known Benefits 1. Property Tax Enhancement (Target: 12:1 Return of Tax Base to Bonds) . 2. Local Economic Impact 3. Potential for Expansion and Spin -Off Development D. Known Disbenefits 1. Traffic and Road Impacts 2. Utility Impacts 3. Service Impacts 4. Environmental Impacts E. Potential Risks F. Consistency with City Planning - Goals and Philosophy 1. Relationship to Proximate Land Uses II. Uniqueness of Project - Applicants should identify those characteristics of their proposal which set it apart from ordinary developments in cost or nature such that public participation would be warranted. A. Extraordinary Development Costs Due to Site Condition or Preexisting Use. B. Removal of Blight or Substandard Structures C. Unusual Physical Landforms or Conditions 0 III. Demonstrated Need - Applicants should provide financial and other information as requested by the City and sufficient C` to demonstrate the need for public financial assistance for development of the proposed project. A. Pro Forma B. Estimate of Project Revenues and Costs C. Applicable State and Federal Requirements D. Business Plan - Per Attachment (Being Developed) E. Marketing Plan - Per Attachment (Being Developed) F. Leverage (Target: 10:1 Private/Public Ratio) - MEMO TO: CHAIRMAN WENZEL AND ALL MEMBERS OF THE ECONOMIC DEVELOPMENT COMMISSION FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 6, 1986 SUBJECT: It was the decision of Chairman Wenzel that a regular meeting would not be held during the month of June after advisement from this office that items for discussion were minimal and further, that a joint meeting with the City Council has been scheduled for June 26 to review the tax increment financing criteria guidelines. Please be advised that the City Council has scheduled a special meeting for 6:30 p.m., Thursday, June 26, to discuss the tax increment financing guidelines criteria that was recently established by the Economic Development Commission. A copy is attached for your review. The City Council has asked that two or three individuals expressing various viewpoints about tax increment financing be present at the informational meeting on Thursday, June 26, to discuss and answer questions about the use of tax increment financing as a business tool. The City Administrator will review the guidelines as presented by the Economic Development Commission. This meeting is open to the public and the City Council will accept public testimony if there are questions. It is anticipated that the meeting will last from 6:30 until approximately 8:00 p.m. The Advisory Planning Commission has been invited to attend. If any member of the Economic Development Commission has any comments regarding the guidelines and information that has been prepared and submitted to the City Council for their review, please contact this office and leave word with either Jon or myself. If you are unable to attend this joint meeting scheduled for June 26, please contact this office and notify Karen. c City Administ ator Enclosure TLH/kf • AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY JUNE 26, 1986 6:30 P.M. MUNICIPAL CENTER BUILDING I. ROLL CALL II. 6:30 INFORMATIONAL HEARING TO DISCUSS TAX INCREMENT FINANCING CRITERIA AND GUIDELINES (Economic Development Commission & Advisory Planning Commission. III. 8:00 REVIEW OF LAND=USE DATA (Advisory Planning Commission.) . IV. REVIEW OF SITES REQUESTING COMPREHENSIVE GUIDE/LAND-USE REVISIONS (Advisory Planning Commission) V. SUMMARY & ALTERNATIVES VI. DISCUSSION VII. ADJOURNMENT MEMO TO: HONORABLE MAYOR & CITY COUNCILMEMBERS ALL MEMBERS OF THE ECONOMIC DEVELOPMENT COMMISSION ALL MEMBERS OF THE ADVISORY PLANNING COMMISSION FROM: CITY ADMINISTRATOR HEDGES DATE: JUNE 23, 1986 SUBJECT: SPECIAL CITY COUNCIL MEETING FOR JUNE 26, 1986 A special City Council meeting in the form of a double-header has been scheduled for this Thursday evening, June 26, beginning at 6:30 p.m. The purpose of this special City Council is 1) an informational hearing scheduled to discuss tax increment financing criteria and guidelines which involves the Economic Development Commission and any members of the Advisory Planning Commission who wish to attend and, at approximately 8:00 p.m., 2) a review of land -use data and those sites requesting a comprehensive guide plan land -use revision will be allowed to discuss their changes. The Advisory Planning Commission will be meeting jointly with the City Council for that portion of the meeting. Enclosed for the City Council and Advisory Planning Commission are complete packets of background information for the entire meeting on Thursday. For the Economic Development Commission, information is enclosed relative to the 6:30 meeting on the tax increment financing criteria and guidelines. If members of the Economic Development Commission would like to stay for any portion of the land use meeting, they are certainly welcome. TAX INCREMENT FINANCING CRITERIA AND GUIDELINES The purpose of the informational hearing was established by the City Council to discuss tax increment financing criteria and guidelines. During the months of March and April, the Economic Development Commission held several meetings to discuss the merits of using tax increment financing as a business tool available for community development. There was action taken by the Economic Development Commission to recommend a resolution to the City Council in favor of using TIF as a business tool for Economic Development. The Economic Development Commission specifically stated in the resolution, a copy is attached for your review, that any and all TIF applications be reviewed and considered on a case-by-case basis. The City Council reviewed the resolution as passed by the Economic Development Commission and it was decided that no action would be taken until the Commission reviewed and established criteria and guidelines for the use of TIF. It was also determined that a public informational meeting would be held to consider certain guidelines and criteria with members of the City Council, Economic Development Commission, Advisory Planning Commission and public invited. The City Administrator has con- tacted Mr. David Sellergren who is a principal with the law firm of Daly, Larkin & Hoffman and is quite knowledgable on the structure and use of tax increment financing. That law firm is not used by the City as bond counsel or in any advisory capacity for the issuance of bonds. Enclosed is a copy of the financial incentive guidelines that were prepared by the Economic Development Commission along with a copy of their minutes of the May 7, 1986, meeting. The City Admin- istrator will review the guidelines at the meeting on Thursday as a part of the presentation and comments that are planned by Mr. Sellergren. REVIEW OF LAND USE DATA AND COMPREHENSIVE GUIDE PLAN REVISIONS Enclosed is information that wa: Department regarding agenda items the meeting that begins at 8:00 p. /s/ Thomas L. Hedges City Administrator prepared by the City Planning III. and IV. for that portion of M. I MINUTES OF THE ECONOMIC DEVELOPMENT COMMISSION Eagan, Minnesota May 7, 1986 A meeting of the City of Eagan's Economic Development Commission was held on Wednesday, May 7, 1986, at the Eagan Municipal Center Building. Present were Commission members Wenzel, Lee, Kleimola, Shields, King, Traynor and Hedges. Commission members Kraning and Stevenson were absent. Also present were Mayor Blomquist, Chamber President Hauge, Chamber Director Bill Escher, Administrative Assistant Hohenstein, and Administrative Intern Johannes. Chairman Wenzel officially recognized Bob Barrett, Chairman of the Mankato State University Urban Studies Institute and several students who were training and auditing various municipal government operations within the City of Eagan the morning of May 7. The Urban Studies class attended most of the Economic Development Commission meeting. MINUTES The minutes of the April 2, 1986, regular Economic Development Commission meeting were reviewed and upon motion by Lee, seconded by Shields, with all members voting in favor, the minutes were approved as presented. COMMUNITY UPDATE City Planner Runkle provided an update of residential commercial and industrial activities as occurring during 1986. He stated that an extraordinary amount of growth activity has occurred within the City creating C a higher assessed valuation and also many new residents within the Community. TAX INCREMENT FINANCING CRITERIA City Administrator Hedges reported that the City Council reviewed the tax increment financing resolution that was prepared and adopted by the Economic Development Commission at their April 15 City Council meeting. He reported that Chairman Wenzel along with members of the Commission were present and answered various questions relative to the tax increment financing resolution. He then stated that the Council has continued the action on the resolution asking that the Economic Development Commission review and prepare a list of criteria for giving consideration and tax increment financing applications. The City Administrator reported that it is the Council's intention that criteria not be written as criteria for approval of TIF; however, that minimum criteria be prepared for the processing of tax increment financing applications. He then reviewed some written material that was prepared by Administrative Assistant Hohenstein that targets certain proposed tax increment financing guidelines. The City Administrator then reviewed a matrix that compares criteria for TIF with industrial development revenue bond financing and other types of special business financing such as housing rental applications. Members of the Commission requested that the equity participation and bond guarantee sections be upgraded as proposed. After further discussion on the matter and in a motion by Commission member Kleimola, seconded by Commission member Lee, with all members voting in favor, +� the City Administrator was directed to prepare a final draft of the TIF guideline criteria and present the same to the City Council for review with the understanding that the Commission reserves the right for a final review prior to City Council action following an informational public hearing to be scheduled in June. SISTER CITY PROGRAM Commission member Kleimola commented on articles that he read from a public management magazine provided by the City Administrator regarding City's opportunities in worldwide economic development. He suggested that the Commission review a sister city program that would provide some potential international incentives recognizing the proximity to the airport and world trade center. HIGH SCHOOL BOND ISSUE Commission member Traynor expressed his strong support and interest in when the high-school bond referendum will be considered within the City of Eagan. He further stated that with the Independent School District 196 election approaching, it would be advantageous for Commission members to express their concerns to the School Board candidates regarding Eagan's economic development position favoring a highschool. p.m. I OTHER BUSINESS There was no other business and the meeting was adjourned at 1:30 0411:1 Dated Chairperson Secretary Draft Financial Incentive Guidelines The City of Eagan offers current and prospective businesses and residents an excellent mix of economic, geographic, social and service amenities. The City's exceptional location and transportation network provide ready access to the entire metropolitan area. Likewise, its diverse economy, well-developed infrastructure and high quality of life are important, positive incentives which are integral to the City's economic development. The City sees the maintenance and enhancement of these amenities as its principal role in the public-private partnership for development. Moreover, the level of privately financed development activity reduces the need for City financial participation in most developments. The City will consider requests for public financial assistance on a case by case basis. While the merits of each proposal must be weighed individually, potential applicants should be prepared to demonstrate community benefit, applicant need and the unique characteristics of the development which warrant consideration for assistance. Applicants must meet all other City application procedures and requirements in a timely manner. Generally, the City will give consideration to projects which create or retain a substantial number of permanent, private E sector jobs, enhance or preserve the tax base of the City, and/or diversify the economic base of the community. The City's requirements for public incentive applications are attached. Numerical targets have been assigned in certain categories. ;7 :: CITY OF EAGAN FINANCIAL INCENTIVE GUIDELINES - COMMERCIAL/INDUSTRIAL HOUSING INDUSTRIAL HOUSING LAD TAX INCREMENT REVENUE BONDS REVENUE BONDS MRITE DO (NO POLI Economic DEVELOPER REQUIREMENTS, Redevelopment Develo ment -No. of new/retained Jobs -No. of new/re E.tned Jobe - Demonstrate -Increased las base -Return of us base to bonds -No. of new/retained Jobs -Heat at exceed low and Benefit to City -Elimination of blight -Increased tax base -Increased is. bas. moderate standard -No -Beicer land taw -0Eher -Project quality -Increased tea base -Ocher -Only extraordinary costs -City participation _ Uniqueness of -Removal of structures paid -Construction and certain -No needed to make pro - Project -Nigh land auembLy -Normal development[ costs equipment viable not financed Minimize City -How roan will project -Project may not be .pacu- Risk be built. -Revenue bands/G.O. bonds I.tivs - 75% pre -lease -No -No " -Revenue Bonds/G.O. bond Application -$500 refundable -$500 plus ..at. above -$500 -$500 -No Fee -Meet all City requirements -Meet all City requirements -Nest all City require menu -Meet all City requirement. -Meet all City Demonstrate -Preliminary pia[ or -Preliminary • Pl.t at -Pre Listnary Plat or -Preliminary Plat or requirement. • Project Commitment Ate plan approval it. plan approval it. plan approval alt. plan approval -Preliminary plat or .� before financing approval before financing approval before financing approval before finanC ing approval Site approval befer, financing approval -r "\ V�"Lnietratiwe Fee -NO -Reimbursement of Clry -Consulting costa only -Consulting coati only -No _ a doiniastative expense. Minimum Project -No -No (Target. $500,000) -3500,000 -No -No Size ' Bond -A.aea..ent agreement -Assessment agreement -Letter of credit If public -Letter of credit if public -Possibly - Guarantee -Ocher gas. untie. -Bond insurance/ offering offering Latest of credit • Payment of -Ye., during life of bonds -Ye., during life of bonds No -0/8 of IT, on tau utanding -No ' Service Costs principal balance Divulge Interest -No No Receipt of application -Receipt of application -No - in Financing °J ;•j Equity Participation -City re• ewes right to City reserves right to Land �um Nnimof 10% -No (Developer) require require 1\/ •Yy Participation -No Na No oto -COM..aura 'rh s� Ci[y Part '-:on Demonstrated -Favorable lavers, -Pavotable leve rage -Consistent with Blau and -Com b[en[ wl th Su to and -Pro [erme Need -Peo form. -pas Forme Federal requirements Federal .quite... is -Eat. of project .. -Est. of project Co.,, -Eat. of project COME. revenues and coats Additional Comments Applicants should consider the following elements in preparing documentation for a proposal for public financial assistance. In some instances targets nave been assigned. I. Demonstrate Benefit to City - Applicants should define the extent which their proposal will affect the following: A. Preservation or Expansion of Current Employment Base 1. Jobs Retained 2. Jobs Created 3. Nature of Jobs Retained or Created B. Diversification of Employment Base 1. Jobs Created 2. Nature of Jobs Created 3. Relationship of Enterprise to Current Economic Base C. Known Benefits 1. Property Tax Enhancement (Target: 12:1 Return of Tax Base to Bonds) F,l 2. Local Economic Impact 3. Potential for Expansion and Spin -Off Development D. Known Disbenefits 1. Traffic and Road Impacts 2. Utility Impacts 3. Service Impacts 4. Environmental Impacts E. Potential Risks F. Consistency with City Planning - Goals and Philosophy 1. Relationship to Proximate Land Uses II. Uniqueness of Project - Applicants should identify those characteristics of their proposal which set it apart from ordinary developments in cost or nature such that public participation would be warranted. A. Extraordinary Development Costs Due to Site Condition or Preexisting Use. B. Removal of Blight or Substandard Structures =:'`y C. Unusual Physical Landforms or Conditions 0 III. Demonstrated Need - Applicants should provide financial and other information as requested by the City and sufficient to demonstrate the need for public financial assistance for development of the proposed project. A. Pro Forma B. Estimate of Project Revenues and Costs C. ,Applicable State and Federal Requirements D. Business Plan - Per Attachment (Being Developed) E. Marketing Plan - Per Attachment (Being Developed) F. Leverage (Target: 10:1 Private/Public Ratio) - F7� AGENDA SPECIAL CITY COUNCIL MEETING THURSDAY JUNE 26, 1986 6:30 P.M. MUNICIPAL CENTER BUILDING I. ROLL CALL II. 6:30 INFORMATIONAL HEARING TO DISCUSS TAX INCREMENT FINANCING CRITERIA AND GUIDELINES (Economic Development Commission & Advisory Planning Commission III. 8:00 REVIEW OF LAND -USE DATA (Advisory Planning.Commission) IV. REVIEW OF SITES REQUESTING COMPREHENSIVE GUIDE/LAND-USE REVISIONS (Advisory Planning Commission) V. SUMMARY & ALTERNATIVES VI. DISCUSSION VII. ADJOURNMENT June 25, 1986 HONORABLE, MAYOR (,, CITY COUNCILT-7' ,M MRS 38_3O PILOT KNOB ROAD FA: EAGAN URBAN LAND DEMAND/SUPPLY Demand With Demand Overage Supply 1980-192 1980-1920 to 1990 39190 4,785 . 129846 DEMAND: EAGAN Demand Total With Demand Demand Overage Supply 1990-2000 1980-2000 1980-2000 . to 2000 1,885 59075 6,018 12,846 Streets and Residential Commercial Industrial Public, Alleys Parks Total 1980-1990 11910 100 -400- . 55, 550 175 -3;190 1990-2000 1,120 200 200 i5 260 90 1,885 1980-2000 demand with five-year overage = 6,018 acres (supply = 12,846 acres). The land supply figure reflects the net developable area, inside the 'local comprehensive plan/urban service line, excluding water, Wetlands, floodplains, any bedrock and any signed -up agriculture preserve lands. The Metropolitan Councils land supply figure includes platted but undeveloped lots as of 1980. Change Change 1970 1980 1990 2000 1980-1990 1990-2000 Population 10,398 209700 40,000 509000 19000 109000 Households 29607 6,824 159400 209,000 89576 4,600 Employment 51915 8,400 20,000 27,000 11,600 79000 URBAN LAND DEMAND/SUPPLY Demand With Demand Overage Supply 1980-192 1980-1920 to 1990 39190 4,785 . 129846 DEMAND: EAGAN Demand Total With Demand Demand Overage Supply 1990-2000 1980-2000 1980-2000 . to 2000 1,885 59075 6,018 12,846 Streets and Residential Commercial Industrial Public, Alleys Parks Total 1980-1990 11910 100 -400- . 55, 550 175 -3;190 1990-2000 1,120 200 200 i5 260 90 1,885 1980-2000 demand with five-year overage = 6,018 acres (supply = 12,846 acres). The land supply figure reflects the net developable area, inside the 'local comprehensive plan/urban service line, excluding water, Wetlands, floodplains, any bedrock and any signed -up agriculture preserve lands. The Metropolitan Councils land supply figure includes platted but undeveloped lots as of 1980. CaMMERRCIAL PLANNING STUDY - CITY OF EAGAN Area: "A" Location East of Dodd Road (T.H. 149) North of Lone Oak Road. Issue: Should the remainder of this area be designated for Canmercial Planned Development use similar to Laukka-Heck, or should residential neighborhoods or other uses be designated? Planning Concerns: 1. Small isolated residential neighborhoods generally are not desirable. 2. There are approximately 450 acres designated for Cam ercial in the Laukka-Beck P.D. The remaining area would add about 200 acres for a total of 650 acres of Camrercial, of which Northwest Airlines would control 156 acres. 3. Most of the area east of area "A", in Inver Grove Heights, is designated for residential use. 4. The Laukka-Beck P.D. does not provide for a street connection to area "A". 5. Current R-4 zoning in area "A" was intended to create a buffer, but is not of a practical shape to allow development. Alternatives: 1. To attempt to create a residential neighborhood of mixed residential use in area "A". This could be planned and developed with the Inver Grove Heights area, or: 2. To designate the entire area for Camrercial Planned Development. So w 0, 19' 1 %W. 1A r i 'a NO "SMO Was l oi 1A r i 'a NO "SMO Was Area: "C" Location: NE quadrant of I -35E and Yankee Doodle Road. Issue: Should this area continue to be designated for multiple residential or should it be redesignated for commercial uses. Planning Concerns: 1. If the area remains designated for multiple residential use, the entire area (220 acres) should be so designated so that a viable neighborhood can be created with, the possible exception of the area adjacent to the diamond interchange. 2. If the area is designated for Com ercial, it should be dominated by low traffic generators such as office park uses because of the high traffic volumes already committed to Yankee Doodle Road via the Town Centre development. 3. Redesignation would commit an additional 220 acres to Ccamercial. Alternatives: 1. Continue with the multiple residential designation. 2. Redesignate for a CamTercial Planned Development. A w�# w1rxA A mm I@ ARM mm - WIN wilw"WOW 0 m 7-'fV ate., b , I uewqmm Area: "E" Location: South of Yankee Square Planned Development between I -35E and Federal Drive. Issues: Should this approximate 12 acre area lying south of Yankee Square remain designated for low density multiple residential or should it be designated for limited business uses similar to the adjacent development to the north. Planning Concerns and Comments: 1. The property lies above I -35E at an elevation generally consistent with Yankee Square. 2. The property is quite visible from I -35E, particularly from the south. Alternatives: 1. To remain designated for low density multiple dwelling complex, or: 2. To be redesignated for an expansion of the Yankee Square Office Complex (L.B.). Area: "F" Location: North of Deerwood Drive between I -35E and Pilot Knob Road., Issue: Should this area remain designated for multiple residential, or should some of the area be designated for Carmn?rcial. Planning Concerns and Comments: 1. There have been two planning reports/studies of this area proposed by staff during the past few years (1983 & 1984). Approximately 40 acres has been designated (C.T.C. in 1984) for L. B. 2. The reports generally recommended mixed residential uses with the possiblity of some Limited Business in the Northern tier of the area. 3. The Northern area appears to be the area of greatest concern and potential at this time where the owners have msde suggest- ions for high-rise apartment, motel, restuarant and corporate home office uses. Alternatives: 1. L.B.designation on the Northern area (north of Englert Road) with mixed residential designations over the remainder, or: 2. Mixed residential designation overall. -- MEMORANDUM -- TO: Dale Runkle, City Planner FROM: John S. Voss SUBJ.: Appropriate Land Use at Violet Lane/Pilot Knob Road Area CTC Business Campus and Anderson Development Application DATE: November 21,.1984 BACKGROUND: At the October 23, 1984 Planning Commission meeting, an application from CTC Business Campus for a Preliminary Plat and rezoning were considered. At that time, the Planning Commission raised questions related to the appropriate land use in Violet Lane/Pilot Knob Road area. Also, the Planning Commission re- quested the staff to look at the overall inventory of commercial and industrial land that would be suitable for corporate headquarters. This memorandum is in response to those concerns. APPROPRIATE LAND USE ATVIOLET LANE/PILOT KNOB ROAD: In November of 1983, a Planning Study was male of the triangular area ea bounded by I -35E on the west,. Deerwood Drive on the south and Pilot Knob Road on the east. In the Study, this area was generally divided into a north, central and southern area. Comments from that Study, related to the northern area which would include the -Violet Lane/Pilot Knob Road area, were in part as follows-; The nox&enn portion o6 .the study area is genenatty chanactenized by .the deveeopment o6 a hew 6.i.ngee 6amity homed with.a targe amount o6 vacant Land which .i,6 g enema t y aotting, w th s catte ted atand6. o6 txeea. The only malo,% vehi,c.utan accros to thio area .i,a PiZot Knob Road. At pxment, there arse .two .intehaecting stneeU - V-ioeet Lane and Enge.ehant Road with some additionatt, private accee6e.6 dihe.etey onto P.ieot Knob Road. The exulting ,intmect on 6.theet6 ane 6paced about one-quanteh (1/4) mi.ee apah t. It woued be de6.urabte to main- .ta,in this zpacing zo that .in tki.6 area, .the only three dilce.ct ac- ce.se6 woaed be V.i.otet Lane, EngeZhant Road and the City HaU acce66. It woued ae6o be de6.ihbaQe to cAeats..an .i.ntenna2 J0_ocak &tAeet connec- tion between theze three accmzea. The s.ingte 6amiity homeb which exi6.t .in .the area genenaC2y ave4 ge 6aom 10 to 20 yeana .in age and arse expected to exist bon the next sevenat. years. Aa ouch, .it again wowed be de6i4abee to have tezidentiat development ala .the paedominen,t u6e .in thio anew which wooed be compatibte with the existing s.ingte 6amiey homez. The R-11 dezignation appeana to be caucect bon th.i.6 area a.ince it woued pehmi.t the ceu6.ten ing o6 tow-dena.i ty tez identia . Memorandum to: Dale Runkle From John S. Voss November 21, 1984 Page 2 deveZopment on, additional sdn9te 6amiZy homes. AZ6o, .i6•ptopeA access coaed be pnovided, thexe may be some po.tenti,a.E bon. Limited Business use along PiZot Knob Road. Othex types o6 cmmmeAcia.Z, howeveA, shoukd be nes•isted; paAti.cukaAZy, that which would generate high vo•Zume.6 06 t4a.66.ic. Since that time, additional information has been provided by the Minnesota Depart- ment of Transportation. Additional homes- have been taken for I -35E right-of-way over that which was anticipated a year ago when the above report was drafted. Now, only one Cl) residence will exist on the north side of Violet Lane and this would be located at the intersection of Violet Lane and Pilot Knob Road. This lot would be the only private property north of Violet Lane. All of the other property has been taken for interstate right-of-way. Also, this general area will be impacted by noise from Pilot Knob Road and Interstate 35E. An exit ramp will be located near the northern boundary of the private property that will remain. Also, Pilot Knob Road will be "bridged" over I -35E and the eleva- tion of Pilot Knob Road will be very near the elevation that exists today. This exposure to high volumes of traffic and high noise levels indicates that this would not be a particularly desirable area for residential development. The proposed CTC Business Campus development, which is a high-tech industry, could be a suitable use for this area if it was properly developed. This use would be in keeping with the Limited Business type of use that was alluded to in the above report. The remaining property along Violet Lane then also could be con- verted, in time, to other Limited Business uses. In this regard, the area north of the pond would be developed with Limited.Business uses and the area to the south would be developed with residential uses wherein the ponding would gen- erally be the area where the transition would be made from Limited Business to the north to residential development to the south. In addition, a traffic study should be done to insure that the volume of traffic generated by the CTC Business Campus could properly be channelled onto Pilot Knob Road. The CTC plan proposes an access to Crestridge Lane. It may be better to exit this property at Violet Lane wherein a traffic signal will probably be installed at some future date because this is also the Pilot Knob Road inter- section with Duckwood Drive which is expected to serve a major shopping center. F COMMERCIAL AND INDUSTR R CORPORATE HEAD - DARTERS: A general survey of land suitable for corporate headquarters reveals that there is a considerable variety of commercial and industrial land avail- able in the City for corporate headquarters. Some of the locations that were considered by COMSERV included the area across Diffley Road from Metcalf Junior High School and the northwest quadrant of I -35E and Cliff Road. Other areas include portions of the Gopher Smelting property, east of Elrene Road and the Dayton -Hudson property which is located at the northeast boundary of the City. The proposed CTC campus site would be well-suited for a corporate headquarters, however, it should not be rezoned solely because there is not other suitable land available in the City. To the contrary, there are considerable amounts ® Memorandum to: Dale Runkle From:'John S. Voss November 21, 1984 Page 3 of suitable commercial and industrial land either zoned or designated on the Comprehensive Plan,which would suit this purpose very well. JSV lei 0 rpod II aw- I ^� f OF4011MIM I 11; oil --!F4 lei 0 rpod II aw- I ^� f OF4011MIM I 11; Area: "G" Location: NE quadrant of I -35E and Diffley Road. Issue: Should this are be redesignated for a Sub -regional Shopping Center as proposed by the property owner. Planning Concerns: 1. There would be approximately 120 acres designated for a sub - regional center between Diffley and Deerwood Drive. 2. This development would be adjacent to a new elementary school, otherwise the adjacent property is undeveloped. These would be a concern about compatibility with the school. 3. The site could be designated specifically for R.S.C. (regional center) development and otherwise not permit c= ercial if this development did not occur. 4. This development could bring some retail uses to Eagan not otherwise found in the City , i.e. major clothing stores, as well as additional tax base. 5. A sub -regional center could otherwise be developed on the Laukka-Beck site and some of the same uses will be developed at other centers within the City. Alternatives: 1. To designate the area (120 acres) for a sub -regional center, or 2. To designate the area for multiple residential with the possibility of Commercial adjacent to the interchange. 'F--7- w Area: 'III. Location: NW quadrant of Rahn Road and Cliff Road. Issue: Should this 20 acre area be designated for commercial use or remain o-111 ( 6 to 12 units per acre). Comments and Considerations: 1. The area is generally surrounded by other designations, i.e. L.B., Parks, N.B., R.B. and Public Facilities. The park would be compatible with multiple dwelling use. 2. All of the other Cliff Road frontage between Cedar Avenue (T.H. 77) and I -35E is zoned for commrcial or public use. Alternatives: 1. To continue with multiple dwelling designation, or: 2. To redesignate to a commercial designation. r74 -mw 1> , Fzdull� :N :A� Area: "L" Location: Southeast corner of City along T.H. 3. Issue: What should be the disposition of Commercial and Industrial zoning and development in this area? Planning Concerns and Comments: 1. Spot commercial zoning and development such as the few scattered businesses in Eagan and Rosemount along T.H. 3 in this area should not be expanded. 2. There does not appeat to be a great need for Commercial and Industrial uses in this area. Park use and residential is the dominant land use and this would .not be compatible with commercial and industrial uses. 3. The area east of T.H. 3 should be planned with Inver Grove Heights. Their Comprehensive Plan proposes Agriculture and single family uses with sanitary sewer service several years in the future. It .4. moo o", /f /2yy�^,�v I lo�er� i.. K•v�c �'s•-.� �r�5s w P Ci�S7�f (�W cf- • Ce � e �aa� �� ���F, k e. /Y IN40 jjiuo l vf�( �o /