02/20/2001 - City Council Special~xt: /.
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MEMO
city of eagan
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: FEBRUARY 16, 2001
SUBJECT: SPECIAL CITY COUNCIL MEETING/FEBRUARY 20, 2001
TREFFLE ACRES
As you may recall, Brad Swenson received approval for the Kennerick Subdivision last year. The
subdivision included a street connection to the north so that, ultimately, anorth/south public street
connection from Lone Oak Road to Skyline Road could be made. The area north of the Swenson
subdivision contains numerous large parcels; some of which are undeveloped and some that are land-
locked.
Over the last several weeks, one party interested in subdividing one of those parcels has approached
staff and interest has been expressed about having utilities brought to another parcel. Staff is concerned
that a piecemeal development approach in this area will result in an uncoordinated development pattern
that would likely preclude the north/south public street connection. An existing conditions map and two
development alternatives are shown on pages, ~ through ~.
ACTION TO CONSIDER
Provide staff direction on the development of the Treflle Acres area and preservation of the north/south
public street connection.
DISCUSS ECONOMIC DEVELOPMENT AUTHORITY OBJECTIVES
On March 6, 2000, the City Council approved the enabling resolution to create the Eagan Economic
Development Authority (EDA). The City Council sits and acts as the EDA. EDA has the authority to
sell bonds, conduct public hearings, as well as any and all other business related to economic
development in the community.
As part of its 2001 Strategic Plan, the City Council identified continued redevelopment in the Highway
55/149 Tax Increment Financing (TIF) District as a high priority. The City's TIF consultant, Ehlers &
Associates, has advised staff that it would be appropriate for the EDA to conduct business related to
that TIF District and any other district that may be considered in the future.
The 55/149 TIF District has a number of issues that have been discussed previously with the City
Council. One important issue is the need to modify aspects of the TIF Plan adopted in 1996 to assure
that it remains in compliance with State Law and not suspect in the eyes of the Office of the State
Auditor, the agency responsible for policing proper administration of TIF districts.
There are also certain legislatively imposed deadline thresholds for TIF districts that are nearing for the
55/149 TIF district. Development proposals within the TIF district are currently being reviewed by the
Economic Development Commission and recommendations are likely to be forthcoming in the near
future that will require TIF budget amendments and other administrative adjustments. One such EDA
action is scheduled for the February 20, 2001 Regular City Council Meeting; scheduling a public hearing
for modifications to the 55/149 TIF plan.
ACTION TO BE CONSIDERED:
Direct that the Eagan Economic Development Authority be the responsible governmental unit to
administer activities and authorizations related to Tax Increment Financing districts and other economic
development activity unless determined otherwise by the City Council.
REVIEW CEDARVALE REDEVELOPMENT CONCEPTS
In December 1999, the Cedar Avenue and Highway 13 Redevelopment Study Area Task Force
presented the "Village Plaza" concept report to the City Council. The report detailed an ambitious and
attractive vision for future redevelopment of the Greater Cedarvale Area.
In the year since the report was received, the City has been busy researching the market and financial
feasibility of the many components in the "Village Plaza" report. Part of the research included
discussions with several large, respected Minnesota development firms -Ryan, CSM Corporation, and
TOLD. Additionally, the City consulted with a commercial market expert, Maxfield Research, to
"double check" the feedback received from the developers. This information was used to refine the
redevelopment vision in the "Village Plaza" report.
On November 28, 2000, the City hosted an open house to share with the public the refinements that had
been made to the redevelopment concept. The study area, originally separated by possible time
schedules of future redevelopment, was broken down into six different sub-areas of potential
redevelopment. These areas were identified based on location, market attractiveness, land and building
values, and phasing priorities. The areas are defined on the map attached on page ~.
Additionally, each of these areas details a comparison of the original vision included in the "Village
Plaza" report and more likely redevelopment alternatives as identified during the market testing and
feasibility analysis period. The concept refinements comparison matrix is attached on page ~ .
The City Council previously reviewed this information, as well as the comments received from the
November 2000 open house, at the December 12, 2000, City Council meeting.
The purpose of discussing the most recent concept refinements and redevelopment area definition is to
make sure that the City Council is comfortable with the vision and process. Should the City Council
adopt the concept refinements and redevelopment area definition, staff and consultants will immediately
begin the process of marketing the project area to qualified developers and soliciting development
programs.
The concept refinements serve as a guide for the City and interested developers. It is possible and, in
fact, it is likely that some changes will be made along the way to either the projected land uses or even
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the project area. However, by adopting these goals, the City Council will be sending a message to the
development community that it is serious about its intent to move forward with redevelopment.
In addition to staff present, Jim Prosser of Ehlers & Associates will be on hand to answer questions
related to process and timelines.
Notice of this agenda item was sent to all property owners within the defined redevelopment area, as
well as the Wuthering Heights residential neighborhood and all individuals that expressed a desire to be
on the notification list. The notice is attached on page ~ through ~Q_.
ACTION TO BE CONSIDERED:
This item is scheduled for official action at the regular City Council meeting (2-20-01) under Old Business D.
/s/ Thomas L. Hedges
City Administrator
3
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GREATER CEDARVALE AREA REDEVELOPMENT
CONCEPT REFINEMENT DESCRIPTION
Development Village Plaza Refined Developer comments/explanaiion
Area Concept Concept of Refinement & Approximate
Build Out
Cedarvale Residential Mixed residential ~ Developers and market research
South neighborhood with density of expert projected critical nexus
with a variety of approx. 12 u/ac. beriveen development density &
housing types. intensity and any successful
redevelopment project.
Build out - 2004
Cedar~•ale Full service hotel HoteUoffice with Developers and market expert
`Vest w/conference transit feature. supported that the area would be
center and office appropriate for hotel and office;
with shared however, a full service hotel is very
parking -Transit unlikely for the foreseeable future A
feature. mid-service hotel with some
conference space is possible in the 5-
l0year range.
Build out - 2010
Cedarvale Two story retail Office and some Mall owner's rep has shown concept
Center and office and retail and/or a plan for renovation and re-use of the
central urban renovation of the mall structure as primarily office.
greenway "main mall for multi- Developers believe retail max should
street" concept. purpose and office be around SOK SF -interest in
Multi-family along space. Multi- housing will be almost immediate.
Beau D' Rue. family along Build out -Varies by use and
Beau-D'-Rue. a essiveness of land ac uisition.
Cedarvale Add recreational Possible addition Developers believe additional uses of
East and entertainment of housing on this ilk may potentially draw from
uses to compliment south side of Beau larger area but would be better
Cedarvale Lanes d' Rue. supported subsequent to the addition
and Jensen's. of office/hoteUretail uses.
Build out - 2005-2015
Road Improve Improve General comments were that retail
Realignment intersection, add intersection and viability would hinge on new multi-
District public feature, and add `gateway' family housing and office
potential re-use of entrance design. development in the area. The
Silver Bell Center Consider retaiU roadway realignment will generate
as `auto-mall'. office/ housing redevelopment interest immediately
mix. Renovate in this area.
Silver Bell Center. Build out - 2001-2005
Cedarvale Office/hotel Corporate campus This area stands alone and is not
North complex; or office park. contingent on other development. To
expansion of Tesseract remains; preserve redevelopment
Tesseract. expansion not opportunities, the City should
likely. consider acquiring property under a
lease back scenario.
Build out - o en 2001-2015
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Info contact: Jamie Verbrugge
Assistant City Administrator
651-681-4603
NOTICE
OF
CEDARVALE REDEVELOPMENT
AGENDA ITEM
WHEN: Tuesday, February 20
4:30 p.m. Special Meeting
6:30 p.m. Regular Meeting
WHERE: Council Chambers, Eagan City Hall
3830 Pilot Knob Road
WHAT: Discussion of Redevelopment Concept Refinements and Definition of
Redevelopment Area
The Eagan City Council has scheduled a Special City Council Meeting for this Tuesday, February
20 at 4:30 p.m.
The City Council will discuss the land use goals and vision for redevelopment in the Greater
Cedarvale Area. These "concept refinements "were presented to the public at an open house on
November 28, 2000, and previously discussed at the December 12, 2000 City Council meeting.
The projected land uses to be considered are based on the 1999 "Village Plaza" report of the
Cedar Avenue/Highway 13 Redevelopment Task Force and subsequent informational interviews
with large developers and commercial market experts.
The purpose of having the City Council adopt the Concept Refinements and Redevelopment Area
is to allow the City to begin marketing the area to qualified developers and soliciting
development programs.
These items will be discussed at the Special City Council Meeting at 4:30 p.m. Consideration of
action for these items is scheduled for the Regular City Council Meeting at 6:30 p.m. that same
evening.
[We apologize for this very late notice. It is our intention to provide a high level of
communication throughout this process and we will make every effort to be sure that you are
notified at least a week in advance of all regularly and specially scheduled City Council meetings
when significant discussion of Cedarvale redevelopment activities will occur.)
(over)
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ATTACHIIIENTS:
Attached for your review are a map of the proposed redevelopment area and the concept refinement
comparison matrix of the various redevelopment areas.
UPDATE OF RECENT REDEVELOPMENT ACTIVITY:
The City Council recently approved the Feasibility Study for Project #800, the realignment and
improvement of the Beau d' Rue Drive and Silver Bell Road intersection. This approval allows the
Public Works Department to prepare final designs and specifications, as well as beginning the process of
condemnation of two homes and two businesses.
The City Council recently entered into a Preliminary Redevelopment Agreement with Delta
Development. The agreement grants exclusive negotiating rights for anine-month period between the
City and Delta Development for a potential multi-family housing redevelopment in the area roughly
between Nicols Road and Rahn Road, south of Beau d' Rue Drive. Design standards, financing,
timelines, and other issues will be negotiated before a final development agreement and project
application can go forward.
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