01/09/2007 - City Council Special
MINUTES
SPECIAL CITY COUNCIL MEETING
TUESDAY, JANUARY 9, 2007
5:30 P.M.
EAGAN ROOM ? EAGAN MUNICIPAL CENTER
City Council members present: Mayor Maguire, Councilmembers: Carlson, Fields, and
Tilley.
City staff present: City Administrator Hedges, Assistant to the City Administrator Miller,
Director of Administrative Services VanOverbeke, Director of Community Development
Hohenstein, City Planner Ridley, Director of Communications Garrison and Fire Chief Scott.
I. ROLL CALL AND AGENDA ADOPTION
City Administrator Hedges requested that the Council consider discussing LED billboard
signs under Other Business; the Council concurred.
Councilmember Bakken moved, Councilmember Tilley seconded a motion to approve
the agenda. Aye: 5, Nay: 0
II. VISITORS TO BE HEARD
There were no visitors to be heard.
III. CONSIDER PETITION TO AMEND THE HAWTHORNE RIDGE COVENANT
RESTRICTIONS TO ALLOW FOR A COFFEE SHOP
City Administrator Hedges introduced the item noting that the City sold a twelve-acre
parcel at 525 Diffley Road in 2003 to Excel Development. Hedges added that the City had
placed restrictions and covenants against the property that prohibited certain uses; one of which
was restaurants. Hedges noted that Mr. Daniel Schaefer of The Old Lodge Coffee Company
submitted a petition to the City with more than 300 signatures in support of his proposed use of
the property as a coffee shop. Hedges also noted the letter of opposition received from Cooper?s
Restaurant.
City Planner Ridley provided a staff report.
Mr. Daniel Schaefer addressed the City Council and presented an additional 270
signatures of persons in favor of the property being used for a coffee shop.
The City Council discussed the proposal and noted why the covenants were implemented
previously.
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January 9, 2007
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Ruthie Batulis, President of the Northern Dakota County Chamber of Commerce, spoke
in favor of the proposed use. Julie Lunde, owner of All About You Salon, also spoke in favor of
the proposal.
Upon further discussion, the City Council directed the City Attorney to modify the
covenants to prohibit Class II restaurants, but allow the proposed coffee shop. The Council also
directed that the covenants retain the provision that would allow for public input should the use
of the property be proposed to change in the future. City Administrator Hedges noted that the
changes to the covenant would be prepared for the January 16, 2007 City Council agenda in
order that the Council could ratify the covenant at that time.
IV. DISCUSS STATUS OF FIRE DEPARTMENT EQUIPMENT / TELESQUIRT
VEHICLE
City Administrator Hedges introduced the item noting that the Fire Department operates
two ladder fire trucks; one of which has had an extensive and long history of repairs dating back
to its inception in the fire service in 1997. Hedges noted that the Fire Department is
recommending that a telesquirt truck could be purchased to replace the current, unreliable ladder
truck.
Fire Chief Scott addressed the City Council, summarizing the options available to the
City with regard to selling the current truck and purchasing a new truck.
The City Council discussed the salvage value of the current truck as well as the reliability
and anticipated length of service of the truck being proposed to be purchased. The Council also
discussed the financing options available to the City.
The City Council directed that staff proceed in accepting bids for the purchase of the
2006 replacement water truck and bring back recommendations as to how the truck purchase will
be funded.
V. ECONOMIC DEVELOPMENT AUTHORITY
A. Call to Order
Mayor Maguire called the EDA meeting to order.
B. Adopt Agenda
Councilmember Tilley moved, Councilmember Bakken seconded a motion to adopt the
agenda. Aye: 4, Nay: 0 (Councilmember Carlson not present for the vote.)
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January 9, 2007
Page 3
C. Northeast Eagan Redevelopment District ? Concept Plan Presentation by DART/Atlas
of Minnesota to Redevelop District Property South of Hwy. 55
City Administrator Hedges introduced the item noting that the City generally does not
consider concept plan reviews for ordinary development applications, but it has provided the
opportunity for prospective developers in redevelopment districts to present concept plans in
order to determine whether the proposed development conforms sufficiently with the City?s
redevelopment goals for the area to merit additional consideration through the preparation of a
predevelopment agreement and formal applications for development and public financing
assistance.
Community Development Director Hohenstein provided a staff presentation and
introduced representatives of DART, Target, and Ehlers and Associates. Director Hohenstein
also introduced Dan Oren who presented the plan being proposed by DART/Atlas property.
The City Council discussed the presentation, including whether retail would be a good
use for the property. The Council also discussed the proposed Target store and its compatibility
with other development in the area.
Mayor Maguire invited public input on the proposal. A representative of CSM
Corporation addressed the Council noting that it was their belief that the property would be used
for industrial purposes; however, they are not adverse to the proposed retail use.
Mr. Matt Miller addressed the Council, noting that he would be very interested in a retail
development at the site. Tom Carrico, representing Target, noted he would be available to
answer any questions the Council may have.
The City Council discussed the Target proposal, including the demographics that would
use the store.
Steve Cheney, owner of the McKee Building, addressed the City Council noting that he
does not want to see a loss in his investment in the building as a result of any potential
condemnation.
The City Council discussed the public policy questions before them and noted their
openness to considering the rezoning of the property to retail. The Council noted that should the
development proceed ahead, it is important that the development conform with design standards.
It was also noted that no notice to-date has been provided to residents in the area regarding the
proposed development.
The EDA stated they would be open to further consideration of a proposal for retail land
use and development application in the NE Eagan Redevelopment District, provided that the
following considerations were made:
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January 9, 2007
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That a retail project will only be considered if it encompasses the ProStop, McKee/Cheney,
Pepsi/Contract Beverages and Budget Host Motel properties, in order for there to be a
significant retail presence in addition to the proposed big box retail anchor.
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The developer provides information relative to its market analysis to support its conclusions
regarding the viability and sustainability of a retail development at this location.
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The developer provides analysis of the differential traffic impacts of the proposed
development concept and the industrial development of a comparable scale on the property.
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The analysis of the project proforma is able to confirm the reasonableness of the financial
assumptions, the potential for a financing gap that would justify a but/for finding for public
financing assistance and the TIF revenue capacity of the proposed development.
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Atlas, as the owner/developer, commits owner equity in the property as a source of funding
in the project proforma.
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The finish materials used in the proposed project meet or exceed the City?s material
standards and that it is architectural treatments compliment those in the business park
development in the remainder of the TIF district.
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That the use of eminent domain for site assembly be considered as a last resort.
The City Council also acknowledged that if the retail project is found not to be feasible,
financially or otherwise, the City would work with the developer to identify a redevelopment
plan that would conform to the current industrial comprehensive guide and zoning designations
of the business park guide and zoning classification to encourage uses more consistent with those
on the north side of Highway 55.
The EDA and City Council directed an item be added to the January 16, 2007 EDA
meeting agenda to authorize staff and the City Attorney to negotiate a predevelopment
agreement regarding the potential redevelopment of property in the NE Eagan Redevelopment
District depicted in the concept plan presented by Atlas of Minnesota.
D. Cedar Grove Redevelopment District / Consider Next Steps for Redevelopment of
Cedar Grove Core Area
City Administrator Hedges introduced the item noting that with the termination of the
Cedar Grove Redevelopment District Agreement between the City and Schaefer Richardson,
staff requests direction with respect to the steps to be taken to select a new development partner
for the core area of the Cedar Grove Redevelopment District.
Director of Community Development Hohenstein provided additional background on the
item, noting that the City?s redevelopment consultant and staff have completed a draft of the
proposed RFP for consideration by the EDA.
At the request of staff, the EDA discussed the City?s role in site assembly,
implementation of divisions of the Cedar Grove area, and additional RFP elements they would
like to see included in the proposal. There was consensus that the City should continue to take
the lead role in property acquisition and site assembly. There was EDA consensus to maintain
the historic planning and visioning efforts that were undertaken for the Cedar Grove area,
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January 9, 2007
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including the Cedar/13 Study and Village Plaza concept. The EDA also encouraged prospective
developers to suggest implementation strategies that reflect the vision and goals in a form that
can be implemented within the current and foreseeable market. In particular, a question was
raised regarding the marketability of condominiums in the Cedar Grove area. The Council also
discussed additional RFP elements, including a strategy to implement high speed broadband
through a fiber to the premises approach, as well as a clear definition of parks and public space
as part of the concept plan, including four season features and water features. It was also noted
that the draft RFP requests, but does not require, the developer to consider use of green
building/sustainable development practices, as well as a provision for performing or visual art
space within the development. The EDA voiced their consensus that a performing/visual arts
space not be included in the Cedar Grove RFP at this time.
The EDA discussed the proposed project schedule as well as the funding for the
improvements and acquisition. The EDA provided direction that an item be included on the
January 16, 2007 EDA agenda to consider the approval of the updated request for proposals for
the Cedar Grove Redevelopment District Master Developer and authorize its distribution.
The EDA reconvened as the City Council.
IV. OTHER BUSINESS
City Administrator Hedges inquired of the City Council whether they would be willing to
discuss a moratorium on LED signage. The City Council provided direction to place the LED
signage moratorium on an upcoming City Council agenda.
VII. ADJOURNMENT
Councilmember Fields moved, Councilmember Tilley seconded a motion to adjourn at
8:03 p.m. Aye: 5, Nay: 0