12/23/2001 - City Council Special
AGENDA
SPECIAL CITY COUNCIL MEETING
MONDAY
DECEMBER 23, 2001
5:00 P.M.
COMMUNITY CENTER BUILDING
CITY HALL COMMUNITY ROOM
5:00 p.m. I. REVIEW PROGRESS OF COMMUNITY
CENTER BUILDING CONSTRUCTION
6:00 p.m. II. AGENDA ADOPTION
III. VISITORS TO BE HEARD
IV. ORDINANCE AMENDMENT AMENDING CITY CODE
CHAPTER 11, SEC. 11.60 / CEDAR GROVE DESIGN
STANDARDS
V. COMMUNITY CENTER OPERATIONS REPORT
VI. OTHER BUSINESS
A. CONSIDERATION OF AMENDED AND
RESTATED DEVELOPMENT AGREEMENT
WITH INTERSTATE PARTNERS
B. 2003 TOBACCO LICENSE RENEWALS
C. 2003 PET SHOP LICENSE RENEWAL
VII. ADJOURNMENT
;lr
TO:
FROM:
DATE:
SUBJECT:
City of Eagan
MEMO
HONORABLE MAYOR AND CITY COUNCIL
CITY ADMINISTRATOR HEDGES
DECEMBER 20, 2002
SPECIAL CITY COUNCIL MEETING / DECEMBER 23, 2002
A Special City Council meeting has been scheduled for Monday. December 23 at 5:00
PM for the purpose of reviewing the construction progress at the Community Center and
to resume the meeting at City Hall at 6:00 PM to discuss the Cedar Grove Design
Standards and Community Center operations report.
REVIEW PROGRESS OF COMMUNITY CENTER BUILDING
CONSTRUCTION
Per the request of the City Council, the meeting time has been amended to 5:00 PM to
allow for an on-site review of the construction progress at the Community Center. At the
request of the Operations Committee, the Council will have the opportunity to review the
committees' suggested construction changes. The City Council will return to City Hall at
6:00 PM to resume the Special City Council meeting.
Construction suggestions to be reviewed:
• The doors from the senior center to the banquet room
• The size/looks of the fireplace
• Meeting room cabinetry
• Employee break room needs
• Plans for the teen center
• Locker room layouts and functionality
• Paint colors
ORDINANCE AMENDMENT AMENDING CITY CODE CHAPTER 11, SEC.
11.60 / CEDAR GROVE DESIGN STANDARDS
Per the request of the Council at the November 26 Special City Council meetings, the
draft Cedar Grove design standards and draft Cedar Grove Zoning District language are
being presented for the Council's consideration. The design standards being considered
will afford the City the ability to achieve visual and economic interest through criteria
that effectuate scale, massing, building materials, signage, etc. The goal of the language
being considered is to make clear the City's desire to establish unique development in the
Cedar Grove area by imposing specific standards.
The City hosted an Open House on Wednesday, December 18, 2002 to allow interested
parties in the greater Cedar Grove area an opportunity to review, discuss, and comment
on the Cedar Grove Design Framework and the Draft Cedar Grove Zoning District
language. Draft minutes from the Public Hearing of the regular APC meeting held on
Thursday, December 19, 2002 are not yet available; however, no one from the public
attended and the APC did unanimously recommend approval of the amendment subject to
some minor modifications that staff 'll highlight for the City Council on Monday.
Enclosed on page through Q is the Draft ordinance language for the Cedar
Grove District. Enclosed on page through are comments received from the
Open House.
DIRECTION TO BE CONSIDERED:
To adopt the Ordinance Amendment to Chapter 11 and direct the City Attorney to
prepare an Amendment Summary suitable for publication.
COMMUNITY CENTER OPERATIONS REPORT
The Community Center Operations Committee has met numerous times over the past two
weeks to discuss the Community Center budget, operations, and construction. Enclosed
on pages through are the meeting notes from the December 17 Operations
committee meeting. The purpose of the discussion on the 23`d is to provide a report on the
recommendations and key discussion points of the Operations Committee as outlined in
the meeting notes.
Enclosed on page 3___L_ is a copy of staff's understanding of the assumptions and
process to be followed in preparation of a rough draft discussion budget resulting from
the December 17 Operations Committee meeting.
ACTION TO BE CONSIDERED:
To provide public policy action or direction on the Operations Committee
recommendations.
TUBING RATES AT SLEDDING HILLS
Staff has been directed to prepare background information for discussion at the meeting
allowing the City Council to determine appropriate rates to be charged for tubing. Staff
will present and explain the worksheets at the meeting on Monday.
ACTION TO BE CONSIDERED:
To set the 2003 tubing rates.
OTHER BUSINESS
A. CONSIDERATION OF AMENDED AND RESTATED DEVELOPMENT
AGREEMENT WITH INTERSTATE PARTNERS
The City Council approved a redevelopment agreement with Interstate Partners in
September 2002 for a project in Tax Increment Financing (TIF) Redevelopment District
No. 2-4.
Due to acquisition costs greater than anticipated in the original agreement, the project
economics are no longer feasible. Interstate has proposed a new development program
that includes a 20,000 square foot office and three retail pads on three parcels. A
potential second phase of the project may include an office development similar to Grand
Oak I, but the amended agreement does not commit Interstate or the City to a second
phase.
The Economic Development Authority reviewed and approved the revised agreement on
Tuesday, December 17, 2002. Attached without page number is the Amended and
Restated Development Agreement.
ACTION TO BE CONSIDERED: To approve the amended and restated development
agreement with Interstate Partners for redevelopment of property in TIF District No. 2-4.
B. 2003 TOBACCO LICENSE RENEWALS
Enclosed on page is an agenda memo regarding additional 2003 Tobacco License
renewals.
C. 2003 PET SHOP LICENSE RENEWAL
Enclosed on page is an agenda memo regarding the approval of a 2003 Pet Shop
License renewal for For Pet's Sake.
/s/ Thomas L. Hedges
City Administrator
3
DRAFT DRAFT DRAFT DRAFT DRAFT DRAFT
Subd. 23. CGD Cedar Grove District
A. Intent. The intent of the "CGD" Cedar Grove District is to provide an area for
compact, mixed use development made mutually compatible through ,1
combination of careful planning and urban design and coordinated public and
private investment. The mixture of land uses within the district is essential to
establishing the level of vitality and intensity needed to support retail and
service uses. The placement of building edges and treatment of building,
parking, landscaping, and pedestrian spaces is essential to creating the
pedestrian-friendly environment envisioned for the Cedar Grove District. Thn
standards in this ordinance are intended to implement and effectuate tht,
principles and relationships established in the City of Eagan Cedar Grove Design
Framework, which will be carried out through specific standards related to site
planning, architecture, building materials, landscaping, signage and other
elements.
B. Permitted Uses. Within the CGD, no structure or land may be used, except four
one or more of the following uses, provided such use is equal to or less than
10,000 square feet in floor area:
1. Accessory store, apparel.
2. Altering, pressing and repair of wearing apparel.
3. Animal clinic when contained within a building.
4. Appliance store.
5. Art gallery.
6. Banks and other financial institutions, without drive-through facilities.
7. Barber shop.
8. Beauty shop.
H
9. Bookstore.
10. Cafe, cafeteria, Class I restaurant, or delicatessen, without drive-through
facilities.
11. Camera store.
12. Candy, nut or confectionery store.
13. Club or lodge, private.
14. Copy service or printing service.
15. Department store.
16. Flower shop.
17. Furniture store.
18. Gift, novelty, or souvenir store.
19. Grocery store.
20. Hardware store.
21. Hotel or motel.
22. Instrument store, musical.
23. Library.
24. Locksmith.
25. Luggage store.
26. Machines, business sales and service.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page
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27. Magazine or newsstand.
28. Meat market for retail sale to the public.
29. Medical offices or clinics (for humans only).
30. Municipal buildings where the use conducted is customarily considered
to be an office use.
31. Museum.
32. Musical instrument and musical recordings store.
33. Notions store.
34. Offices.
35. Optician.
36. Painting, wallpaper and decorating store for retail sales and service.
37. Pet store.
38. Repair and servicing of items, the sale of which is permitted in thi_
district.
39. Residential multi-family dwelling units, if within a structure containing a i
least four units.
40. School, public or private.
41. Shoe store.
42. Sporting goods store.
43. Stationery store.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page
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44. Tanning salon.
45. Tobacco store.
46. Toy store.
47. Variety store.
48. Video sales and rental.
C. Accessory Uses. Within the CGD, the following uses shall be permitted accessor\
uses:
1. Off-street parking of automobiles for patrons or employees of a permitter;
use.
2. Off-street loading areas as regulated herein.
3. Signs, fences, and decorative landscape features as regulated herein.
4. Customary uses incidental to the principal use as determined by the Cit'
Council.
D. Conditional Uses. Within the CGD, no structure or land may be used for thc
following uses except by conditional use permit:
1. On-sale and off-sale liquor establishments as regulated by the City Code.
2. Drive-through facilities for a permitted use, if provisions for vehicle
stacking, vehicle maneuvering, outdoor speaker devices, appearance are
lighting of outdoor menu boards, and other related issues can be shown tb
be in keeping with the intent and character of the CGD and compatible
with surrounding uses.
3. Residential dwelling units within the same building as non-residentia i
uses, if provisions for parking, security, noise, odors, and other relater
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page J
issues can be shown to be handled adequately and in keeping with tht
best interests of the residents.
4. Movie Theater, if provisions for parking, lighting, signage, security, any I
hours of operation can be shown to be handled adequately and in keepin;
with the intent and character of the CGD.
5. Parking ramp or parking garage.
6. Buildings in excess of 50 (fifty) feet in height, if such buildings can b
shown to be in keeping with the intent and character of the CGD ant!
compatible with surrounding long-term uses.
7. Any permitted use or any other conditional use, of 10,000 square feet oi
more in floor area, if such use can be shown to be in keeping with tht
intent and character of the CGD and compatible with surrounding uses.
8. Other uses determined by the City Council to be similar in purpose any
character to other permitted and conditional uses in this District.
9. Automobile service/repair.
10. Convenience gas stations.
11. Automobile car wash, as an accessory use.
12. Outdoor storage, as an accessory use.
E. Lot Area, Lot Width, and Yard Requirements.
1. Setbacks
Principal Structure:
Front Yard: Build-to Line (0-10 feet)
Side Yard/ Interior: 0 feet minimum
Side Yard/Corner: Build-to Line (0-10 feet)
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page
IF
Rear Yard: 20 feet minimum
Accessory Structure:
Front Yard: 20 feet minimum
Side Yard: 0 feet minimum
Side Yard (Street): 20 feet minimum
Rear Yard: 5 feet minimum
Parking:
Front Yard: 5 feet minimum
Side Yard: 5 feet minimum
Side Yard (Street): 5 feet minimum
Rear Yard: 5 feet minimum
2. Front Yard Build-To Line Established. In the CGD in the front yard, ,
build-to line is established which provides a minimum and maxiinuni
front setback for buildings and other structures, from the right-of-way o
property line. The minimum front building setback shall be zero (0) fee!
and the maximum shall be ten (10) feet from the right-of-way or propert
line, for all properties on streets within the CGD-1 District (see Figure x).
3. For parking, different minimum setbacks apply, but there is no maximum
4. For all properties within the CGD the required setbacks to Highway 1'.
and Cedar Avenue shall follow the rear yard setbacks above.
5. In the CGD, at least 60% (sixty percent) of the street frontage of any lot
shall be occupied by building facades meeting the build-to line. Other
portions of a building beyond the 60% may be setback farther that i
required by the build-to line.
6. The length of the building facade shall be measured as the maximun ;
width of the building projected to the front lot line on lines perpendicula
to the front lot line.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page
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7. On lots with more than one street frontage, the build-to line shall apply on
each side fronting a street.
8. The build-to line may be met either with an enclosed building or an
arcade constructed with a permanent roof of the same materials as tht,
remainder of the building.
9. At least the first and second floor must meet the Build-to Line. Arcades a!
street level and terracing of building facades above the second floor ark
encouraged.
10. At a minimum, the first fifty (50) feet of the lot frontage on either side of .1
street intersection must be occupied by buildings meeting the build-to
line. Parking or other space open to the sky is not allowed within this firs!
fifty feet.
11. Screening of Parking Areas. Wherever a surface parking area faces
street frontage, such frontage shall be screened with a decorative ,vall,
railing, hedge, or a combination of these elements, to a minimum height of
two and one half (2-1/2) feet and a maximum height of three and one hall
(3-1/2) feet above the level of the parking lot, at the build-to line.
12. Parking Structures. New parking structures shall maintain a setbacl
equal to the setbacks required in this section for other structures, excep
that where such parking structure is adjacent to other parking in a side or
rear yard condition, the parking structure may have a zero setback. Where
a new parking structure is adjacent to an existing use in a side or rear vary f
condition, the parking structure must maintain at least a ten (10) fool
setback.
13. Drive-Through Lanes. Drive-through or drive-in lanes are not allowye(
within the build-to line or in front of any building; they must be located t(
the side or rear of a building and provide, at a minimum, stacking for siN
(6) vehicles.
14. Building Height: Building height is defined as the vertical distance iron I
the average elevation of the adjoining ground level or the establishes;
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page
lb
grade, whichever is lower, to the top of the cornice of a flat roof; the top of
a mansard roof; a point directly above the highest wall of a shed roof; the
uppermost point of a round or other arch-type roof; the mean distance
from the eave line to the peak of the highest gable on a pitched or hip roof.
15. Height Limit. The maximum height of buildings in the CGD shall be 5(
(fifty) feet, except as allowed by conditional use permit. ? The minimum
height shall be 24 (twenty-four).
F. Building Types. Within the CGD, no building shall be constructed and occupied
except for the following types, described below, and depicted on the attached
Figures x through xx:
1. Building Type A, Mixed Use. Type A buildings may include retail, office,
or residential uses on the first floor and on upper floors. Parking may be
included on a level below ground. Type A buildings may have a flat or
pitched roof.
2. Building Type B, Apartments or Condominiums. Type B buildings may
include residential, office, or retail uses on the first floor, and residential
apartments or condominiums on upper floors. Parking may be included
on a level below ground. Type B buildings may have a flat or pitched
roof.
3. Building Type C, Townhomes. Type C buildings shall be residential
townhomes on all floors, except that a portion of the first floor not
fronting a street or public open space may include parking. Type C'
buildings shall have a pitched roof. Maximum height shall be thirty-five
(35) feet. Maximum depth of buildings perpendicular to a street shall be
fifty (50) feet. Minimum width of lots for individual units shall be twenty-
five (25) feet.
4. Building Type (D), Office/Retail. Type (D) buildings shall include offict'
or retail uses on the first floor, and office uses on upper floors. Parkin};
may be included on two levels below ground. Type (D) buildings may
have a flat or pitched roof.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 8
G. Density.
1. Density of residential development within the CGD shall not bt
specifically defined. The goal is to provide maximum flexibility in
attracting a mix of residential uses consistent with the long-term goals o!
the Cedar Grove District.
H. Streets.
1. All new developments or significant redevelopments in the CGD shall bb
served by public streets on blocks that are no more than 400 (four
hundred) feet on a side between intersecting public streets. New of
significantly modified existing streets shall conform to the Street Type,.
established in this chapter and to the master street plan for Cedar Grove.
2. Within the CGMU District there are established street types for the
purpose of creating various streetscape environments, handling traffik
safely and efficiently, and providing pedestrian access. On-street parkin; ,,
shall be provided on all streets within the CGD District except where
specifically prohibited by the City when warranted for safety reasons
These street types shall correspond to a master plan for streets in the
Cedar Grove area, and are illustrated on attached Figures x through xx.
a. Type 1 - Parkway: Minimum right-of-way width of 120 (on(
hundred twenty) feet, two-way street with parallel parking botl,
sides, center landscaped median minimum 20 (twenty) feet ii
width, landscaped boulevards both sides minimum 10 (ten) feet ii
width, sidewalks both sides minimum 8 (eight) feet in width.
b. Type 2 - Collector: Minimum right-of-way width of 80 (eighty)
feet, two-way street with parallel parking both sides, landscaped
boulevard minimum 6 (six) feet in width, sidewalks both side,-
minimum 6 (six) feet in width.
c. Type 3 - Local/Parallel Parking: Minimum right-of-was' width o!
60 (sixty) feet, two-way street with parallel parking on both sides.
sidewalks on both sides.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page
/a
d. Type 4 - Local/Angled Parking: Minimum right-of-way width ot
60 (sixty) feet, two-way street with angle parking on one side.
sidewalks on both sides.
1. Parking.
1. Parking for residential units in CGD shall be provided on site, and shall b
calculated as required under this Title. Such residential parking space,
shall be specifically reserved for the use of residents and visitors only
separate from any commercial, office, or other uses on site or nearby, an(:
shall not be counted as part of any shared parking or joint parkin!',
arrangement. Parking in driveways at the rear of townhomes may b'
counted towards the requirements of this ordinance if it does not interferu
with other traffic movement.
2. Parking for non-residential uses shall be as required under this Title. 1
present, on-street parking directly in front of a given building or lot steal:
count toward fulfilling the total parking requirement.
3. On-grade parking is prohibited in the front yard directly in front of )
building. Parking shall be provided to the side or rear of buildings ii
mid-block areas.
4. In the CGD, where parking fronts a public street the maximum parking lo.
width shall be fifty percent (50%) feet measured at the lot frontage.
5. Parking shall be prohibited within fifty (50) feet of the intersection of am
public streets within the Cedar Grove District.
J. Building and Architectural Provisions.
1. All buildings shall be designed to accomplish the goals and policies of the
Comprehensive Plan and the principles of the Cedar Grove Desigi 1
Framework. Building materials shall be attractive in appearance, durably
with a permanent finish, and of a quality that is consistent with th,
standards and intent of the Design Framework. Where appropriate.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1 1
13
buildings shall use reasonably similar materials and colors of adjacen
buildings, with the exception of prohibited materials.
2. All buildings shall include the following elements:
a. accent materials shall be provided and all sides of a building steal
be treated as a front side;
b. buildings containing office and retail uses shall maintain 40
minimum window coverage on each first floor front that faces o
street or public open space;
c. complimentary major material colors;
d. a combination of vertical and horizontal pattern designs in the
building facade.
3. Any exterior building wall adjacent to or visible from a public street.
public open space, or abutting property may not exceed fifty (50) feet iii
length without significant visual relief consisting of one or more of tht
following:
a. the facade shall be divided architecturally by means of significantl'
different materials or textures, or
b. horizontal offsets of at least four (4) feet in depth, or
c. vertical offsets in the roof line of at least four (4) feet, or
d. fenestration at the first floor level that is recessed horizontally at
least one (1) foot into the facade.
4. Building facades shall be divided into similar bays of roughly equal widtl
between 20 (twenty) and 40 (forty) feet in width.
5. Exterior building materials shall be classified primary, secondary, or
accent materials. Primary materials shall cover at least sixty percent (60%
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1
l?-
of the facade of a building. Secondary materials may cover no more than,
thirty percent (30%) of the facade. Accent materials may include door and
window frames, lintels, cornices, and other minor elements, and maN
cover no more than ten percent (10%) of the facade. Allowable material .
are as follows:
a. Primary exterior building materials may be brick, -stone, or glass.
Painted brick or bronze-tinted or mirror glass are prohibited a,
exterior materials.
b. Secondary exterior building materials may be decorative block o,
integrally-colored stucco.
c. Synthetic stucco may be permitted as a secondary material or
upper floors only.
d. Accent materials may be wood or metal if appropriately integra tee
into the overall building design and not situated in areas that wil
be subject to physical or environmental damage.
e. All primary and secondary materials shall be integrally colored.
f. Decorative block shall be colored only by means of a pigmen
integral to the block material, not applied to the surface.
g. Sheet metal, corrugated metal, asbestos, iron, shakes, and plain tla
concrete block (whether painted or integrally colored or not) ar'
not acceptable as exterior wall materials on buildings within th,
Cedar Grove District.
6. All mechanical equipment, whether roof-mounted or ground-mounted
shall be completely screened from the ground-level view of adjacen
properties and public streets, or designed to be compatible with thf,
architectural treatment of the principal building.
7. All exterior trash enclosures or other accessory structures shall b,
constructed of the same materials and colors as the principal building.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1:
8. Consistent interior window treatments are required for windows that an
visible from a public street or open space in offices and multiple
residential complexes.
9. All buildings containing non-residential uses on the ground floor shal
meet the following standards:
a. The building shall have entrances to a street or public open space
spaced no more than one hundred (100) feet apart.
b. Entrances shall be oriented conveniently to the street frontage any i
to on-street and off-street parking serving the use.
10. All buildings containing residential uses on the ground floor shall have .i
first floor elevation at least two and one half (2-1/2) feet above thk,
adjacent street level in the front yard. This standard may be modified witl I
a variance in unique or hardship situations if the intent is preserved. It
addition, each first-floor unit must have an individual private entrance a.
street level. All such residential units must meet ADA and other
applicable access requirements.
11. Trash Handling: All trash, recyclable materials, and equipment for
handling them, including compactors, shall be completely screened from
eye level view from public streets and adjacent properties, whether in tht
front, side or rear, either by being stored within the principal structure
completely screened from view by the principal building, or stored within
an accessory structure constructed of the same materials and colors as anc.
attached to the principal building and enclosed by a roof and readily,
served through swinging doors or an overhead door on tracks.
12. Loading docks: Loading docks shall be not located in the front yard anal
shall be completely screened from eye-level view of public streets and
public open spaces, by means of landscaping which is at least 80% opaqut
year-round within two years, or by a screen wall of the same material,
and colors as the principal building.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1..
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13. Landscaping:
a. All land area not occupied by buildings, parking, driveways.
sidewalks, or other hard surface shall be sodded or mulched and
landscaped with approved ground cover, flowers, shrubbery and
trees.
b. At least ten percent (10%) of the total land area within tht
perimeter of private parking and driveway areas shall b4
landscaped. Landscaped areas provided within the build-to lint
may be credited toward this 10% landscaping requirement on
square-foot-for-square-foot basis, for up to half of the 10
requirement, or 5%.
c. Parking lot landscaped islands shall be a minimum of one hundred
fifty (150) square. feet in area and include at least one overstorv oi
evergreen tree meeting the requirements of this ordinance.
d. Where parking abuts the site perimeter there shall be provided a,
least one overstory tree per twenty-five (25) feet of site perimeter.
e. At least one overstory tree shall be provided for every five hundred
(500) square feet of landscaped area on the entire site.
f. The landscape plan shall include a full complement of overstor\.
ornamental and evergreen trees, shrubbery, and ground covers tha
are hardy and appropriate for the locations in which they are
planted, and which provide year-round color and interest.
g. Plant selection. The following trees may not be used to satisfy the
landscaping requirement of this section:
Acer negundo
Acer saccharinum
Catalpa speciosa
Elaegnus
Box Elder
Silver Maple
Northern Catalpa
Russian Olive
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page id
II
Ginkgo Biloba F. Ginkgo (female prohibited, mal,
permitted)
Morns alba Mulberry
Populus deltoides Cottonwood
Populus species Poplars
h. The following trees may be used to satisfy the landscapin;
requirement of this section, but only in areas that are reasonabl\
protected from winter wind conditions:
Picea pungens glauca
Pimis albs
Pinus resinosa
Colorado Blue Spruce
White Pine
Red Pine
i. The following trees may be used to satisfy the landscapin;
requirement of this section, but only in areas that are not on, or
immediately adjacent to, a public street boulevard:
Tilia cordata Little Leaf Linden
Fraxinus mandshurica mancana Mancana Ash
14. Signage:
a. All signs erected on any building or land within the Cedar Grove
District must comply with the standards of this section and other
applicable sections of this Title.
b. Wall signs:
1) Wall signage is allowed on buildings in the Cedar Grove
District within a horizontal band no more than three feet (3'
in height, at least ten feet (10') and no more than fifteen (15'
above the ground.
2) Wall signage may be either:
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1
(E
a. Attached: flat and parallel to the surface of th(
building and projecting no more than one (1) foot
from it, or
b. Projecting: perpendicular to the surface of th,
building and no more than one (1) foot in thickness.
3) Attached wall signage shall consist of individual letters o;
script logos mounted on the building.
c. Projecting signs:
1) Projecting signs may project no more than four (4) feet fron
the front edge of the building and be no more than twelvt
(12) square feet in area.
2) Projecting signs may not extend over a public right-of-wa`
or public property unless by conditional use permit.
3) Projecting signs may not extend over a designated parkin;
space or loading area.
d. Box signs or cabinet signs, whether on a wall, projecting or or,
canopies/ awnings, are prohibited.
e. Signs on canopies are allowed only if they are on a surfact
perpendicular to the ground and if all other requirements of this
section as to area and location are adhered to.
f. Allowable area of wall signs is one and one half (1-1/2) square fee!
of signage per lineal foot of building frontage on a public street
public open space, or private parking area. Each wall shall b
calculated individually and sign area may not be transferred from
one side of a building to another side. In calculating the total
allowable area of wall signage, only one side of a two-sided
projecting sign shall be counted.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1V
19
g. Freestanding signs, intended to identify tenant(s), provided sail i
signage does not exceed twelve (12) feet in height, are allowed
provided the sign is located within a landscaped area oi
landscaped island. Such signage shall be constructed with a base.
constructed of the same materials and colors as the principal
building, with a minimum height of three (3) feet and a total sigi1
area not to exceed forty five (45) square feet. In calculating the tota I
allowable area of identification signage, only one side of a two-
sided freestanding sign shall be counted.
h. Directional signs at driveways and within parking areas, if no mon
than five (5) feet in height and no more than six (6) square feet ii,
area. Directional signs must be setback at least two (2) feet fron
right-of-way, lot lines, and parking spaces.
15. Lighting:
a. All exterior lighting in the Cedar Grove District shall be downcast
cutoff type fixtures, and shall follow the styles and types identifiec
in the Framework Manual. No light source may be more that
twenty (20) feet above the ground, except by conditional use permi,
for buildings more than twenty four (24) feet in height.
b. The applicant for any building project shall provide a photometric
lighting diagram prepared by a qualified professional showin;
light levels, in foot-candles, from all exterior artificial lighting for
all points on and within ten (10) feet of the site.
c. Lighting levels in exterior parking areas shall average one and i
half (1 1/2) foot candle, with a minimum of one half (1/2) foot-
candle in all locations.
d. Lighting levels in interior parking areas shall average two (2) foot-
candles, with a minimum of one half (1/2) foot-candle in all
locations.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1
C?u
e. Lighting levels shall not exceed one half (1/2) foot-candle at tht
abutting property line or right-of-way line, and no direct glare fron,
lighting on site shall extend onto the public street, public open
space or neighboring properties.
K. Non-Conforming Buildings & Uses
1. Non-conforming buildings and sites can be maintained. Non-conforinini
buildings and sites that are damaged up to 50% (fifty percent) of thei
assessed value may be re-built.
2. Non-conforming principal and accessory buildings may be expanded ul,
to, the lesser of, 10% (ten percent) of their floor area or assessed value.
provided the expansion is consistent with the zoning that existed prior t<
the effective date of this ordinance.
3. Expansion of non-conforming principal and accessory buildings above
the lesser of, 10% (ten percent) of their floor area or assessed value, will b,
required to attain compliance with the provisions of this ordinance.
4. Rebuilding of sites or buildings damaged by more than, the lesser of, 50
(fifty percent) of their floor area or assessed value, is not allowed unles-
the entire building and site is brought into compliance with thi-
ordinance.
5. Non-conforming uses that have been discontinued for a period of one (1
year are not allowed to be re-established.
6. Non-conforming uses are not allowed to expand.
L. Administration.
1. Cedar Grove Design Review. A Design Review Committee is establishei.:
for the Cedar Grove that shall consist of three to five members appointee
by, and serving at the pleasure of, the City Council. The City Counci:
shall appoint one member to serve as Chairperson to call and facilitate th-
meetings of the Committee.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1
al
2. All applications for development projects in the CGD must first b(
submitted to the Design Review Committee, who shall determinc
conformance of the proposed developments with the intent and
requirements of this chapter. The Committee shall also review and make
recommendations to the Planning Commission and City Counci
regarding land use and zoning applications in the CGD for thos1
applications that are required under this Title to have such review by th(
Planning Commission or City Council.
3. An applicant may appeal a decision of the Cedar Grove Design Review
Committee to the City Council, within thirty (30) days of submitting .1
written request for appeal to the Community Development Department.
City of Eagan Zoning Regulations
Cedar Grove District (Draft) November 2002 page 1
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MEMO
City of Eagan
TO: SENIOR PLANNER RIDLEY
FROM: ASSISTANT CITY ADMINISTRATOR VERBRUGGE
DATE: DECEMBER 19, 2002
SUBJECT: PUBLIC COMMENTS RELATED TO CEDAR GROVE ZONING
DISTRICT AND DESIGN STANDARDS OPEN HOUSE
Twenty six (26) people attended the two-hour open house. The make-up of attendees included
four residents (three outside the district, one within), eighteen business interests/property owners
within the district, three interested persons, and one council member.
Below are comments submitted at the December 18, 2002 open house held to share the draft
zoning ordinance and design standards for the Cedar Grove District.
Three (3) comments were submitted.
Comment:
The Village design is just what we wanted. I hope there is room for a coffee shop, etc.
Comment:
There are businesses in this area that work! I have two - car wash and laundromat. We've been a part of
this community for 35 years at these locations. Finding suitable locations along with the SAC and WAC
fees make relocation unlikely. I was told at the onset the city would work with the businesses that wanted
to stay - what happened?
Comment:
I have highlighted what I believe are ambiguities [shown here in italics] in the Redevelopment Area Design
Standards.
1. Mixed Uses - A mix of uses, both horizontally & vertically - vertical mix (e.g., residential over office &
retail). No examples given for horizontal uses.
2. Buildings Close to Streets - "The single most important principal in creating 'village' is to place buildings
close to the street." For most of the internal streets, a build-to-line will be established that require most of a
lot or block to be (etc.)
3. Two-Story Buildings - "To create a sense of place or a 'village' street, all or most of the buildings need
to be at least 2 stories in height." Some uses may resist this requirement and insist on being a single
story.
Cedar Grove Design Standards Open House
December 19, 2002
4. Parking to Side or Rear - "Placement of parking is a major feature." For the most part parking will be
prohibited in front of buildings. Also, parking lots that do front the street... Street Types, Appendix
B/unclear.
Mike, please share these comments with the Advisory Planning Commission and City Council to
aid deliberation on this issue.
Assistant City Administrator
Copy: Thomas L. Hedges, City Administrator
2
aLe
-----Original Message-----
From: Steve [mailto:steve@vanmancompanies.com]
Sent: Thursday, December 19, 2002 10:38 AM
To: 'jverbrugge@cityofeagan.com'
Subject: Cedargrove Redevelopment
Jamie,
Thanks for putting on the open house last night. Here are some brief comments.
General Comment:
1. It was a surprise to see that a paid consultant did not show the actual city approved
development plan for nicols ridge. They need to be more careful when they submit drawings for
presentations.
2. I think the mixed use village plan concept is the best of the proposals. I hope this one is
approved as the one to pursue in more detail and see to fruition.
3. Has there been any discussions on a gateway sign or sculpture for this area. We talked about
it in the task force. I think our city would benefit greatly from some sort of a welcoming gateway
sign that would be visible to Hwy 77 as well as visitors to Cedar Grove redevelopment area. If
you have anything on this would you please send me a copy.
Architectural design standards:
4. It is too bad the last standard was included. The overall design standards are continuing a
trend of traditional architecture design, styles, and materials. Today's younger generations, and
possibly future ones as well, like more alternative materials. Excluding these materials may limit
some creative expressions that could enhance the overall character with variety and vibrancy.
Using quality different materials with creativity and professionalism can be a good thing for both
the businesses and customers.
Draft of District Ordinances:
5. J. Building and Architectural Provisions, paragraph 2.a - This conflicts with the general
standard listed in the executive summary. I would hope all sides shall be treated as a front side.
The standard says the finishes must wrap around the sides but it does not go into any detail,
maybe just a typo.
6. J.6 - How does this apply to Nicols Ridge? Are they going to put landscape screening around
any exposed mechanical units?
7. L. Administration - Would you please let me know when you will be soliciting for members of
the design review committee. If it is possible I would like to be on the committee.
Thanks,
Steve Wallick
a-7
12-17-02 Operations Committee Notes
Present: Councilmember Carlson, Mayor-elect Geagan, Tim Staley, City Administrator
Hedges, Director of Administrative Services VanOverbeke, Director of Parks and
Recreation Vraa, and Community Center Manager Breuer.
• Tom covered his memo to the Operations Committee dated December 16, 2002
in which he detailed activities that had taken place following the December 13th
tour of the Community Center. A full report was also provided to the City
Council in his memo of December 17, 2002.
• Tom explained to Tim the process followed for the preparation of the
Community Center budget information and welcomed his participation in the
development of a final operating budget for the facility and in addressing
operational issues.
• Tim explained that Community Centers and Y's in the same community may
add some challenges, although Eagan and the service area is large enough to
support both facilities. He has opened two facilities and explained the delicate
nature of that process. He opened both of those facilities in March and the
spring/summer is not a good time to be opening a facility thereby making the
first year very difficult.
• Tim asked questions about established relationships with others such as the EAA
in terms of usage and staffing and about existing City staff that may be working
at the Center. Ken explained the integration of City systems with the new
facility and how staffing is being proposed. He noted that EAA has asked to
book dates but that there are no agreements in place at this time since rates, etc.
have not been established. Ken also noted the lease relationship with the ECVB
and that some wedding dates have been booked. Ken also explained the concern
of making sure that there is gym space available for members as part of the
fitness component. He further explained that current City staff will be
developing programs that will buy space as a user to operate recreational
programs at the Center and that we are working very hard not to duplicate staff
while providing the desired level of services to the citizens.
• Councilmember Carlson reported that EAA has approached her as a former
board member. She feels that their expectations are minimal and that by
bringing EAA activities into the building numerous revenues will be enhanced.
City representatives need to sit down with EAA to cover the expectations and
the various scheduling options.
• Tim stated that he thought the hourly gym rates are fair but probably higher than
the EAA will be expecting and they may want to negotiate them down.
Councilmember Carlson does not expect the EAA to have a problem with the
rates based on the type of space and what they are paying in the schools. Ken
noted a potential issue with the EVAA, based on their expectations and previous
experience with the Civic Arena. Tim reiterated that the hourly fees are on the
low end and could probably go to $30 to $35 per hour given the facility.
• Tim asked about the programming piece relative to teens, seniors, and drop-ins.
Councilmember Carlson noted that no policies have been set in these areas and
Tom added that those policies are in the formulation process. Pat noted the
?8
importance of partnerships to provide programs at the most reasonable cost.
Ken explained the City's existing senior program and added that staff is trying to
create an expectation that to run an effective program in the new Community
Center, seniors will need to be involved through volunteering and that there will
be some cost to seniors associated with operating in the new Community Center.
Tim noted that the Y does not have much for senior programming at their
facility; given the demographics and related cost, the Y simply cannot afford an
extensive program. Councilmember Carlson stated her expectation that seniors
will need to be involved in actually operating programs. Tim again stated that
the Y does not have much by way of senior membership but does offer ala carte
programs. Rooms may be on an open forum; however participation in
everything else is on a fee basis. Ken said that is consistent with how the City
currently runs its senior program.
• Councilmember Carlson asked that, whatever the fee expectations, do we need
membership to control participation.
• Tim noted that they have not had much discussion on fees but stressed the
importance of a high quality product to develop a program base.
• By way of partnerships, Tim noted that the Y runs the Mounds View
Community Center.
• Tom asked about teen programming, questioning what type of programs are
suitable and what the impact is on programming in a facility as it relates to a
revenue base. Councilmember Carlson noted some problems at the Y with teen
nights and Tim explained proposed changes for 2003. He also stated that the
teen room at the Y is staffed at all times at the Y's expense and reminded
everyone about the agreement with the City to provide that staffing when the
City made the contribution to the Y for the teen program. Tim said control is a
big issue as you need to know who is in the building.
• Tom suggested that seniors would probably be willing to pay a membership fee
to get information and access to senior programs.
• Tim suggested that you need some fees for both teens and seniors.
• Pat asked about the possibility of phasing the operation of the Community
Center in so that higher potential revenue components would open earlier. Ken
responded about how that was the basis for the calendar presented earlier,
however, it was based on the fitness center being opened first to provide for
membership sales and revenue. Subsequent openings would then proceed to the
indoor playground and banquet room and finally to the programs with less
revenue potential. This schedule is obviously not consistent with the best time to
open a fitness center and Tim suggested that the fitness component not be
opened until September to enhance start up membership and to reduce start up
costs. He noted that a March or April opening might be okay but not May or
June. Tim also suggested that the $69 initiation fee is probably too high for the
fitness center that the City will be offering. Ken agreed and responded that the
initiation fee will probably serve primarily as a marketing feature, assuming that
the City Council approves that flexibility.
• Councilmember Carlson expressed her concern about staffing costs before the
building opens.
0 9
• Tim noted that even at the Y the child care program does not provide a positive
return and should be looked at as a service and not as a revenue generator. The
Y runs 3,000 kids per month through its center and needs the service to
compliment other activities. The primary users of the child care will be moms
attending aerobics classes and moms and dads utilizing the fitness center.
Projected personnel costs for the child care center appear to be consistent
between the City's projections and the Y's experience.
• Pat again asked how the operations could be phased in over a year with the
fitness operation opening in the fall.
• Tim volunteered partnerships to share costs on certain of the programs and asked
about proposed staffing levels. Councilmember Carlson inquired about how
proposed staffing was arrived at in the previous models of operation. Ken
explained certain assumptions and Tim explained the hours of operation at the
Y. Estimated custodial costs are quite similar between the two facilities and Ken
explained the expectations of customers regarding setting up meeting rooms and
the need for staff during operational hours. Councilmember Carlson noted that
she had no problems with the proposed hours of operation.
• Tim explained that the budget issue is really; how lean can you go on the
expense side and can you be more aggressive on the revenue side. For example,
should the gym rental rates be pushed and are we getting the primo price for the
banquet room. Ken explained the difficulty of marketing and booking a concept
while not having a building to show and the resulting less than primo rates to get
users in the short term with an expectation to review and perhaps increase fees
later.
• Tim suggested a phased opening to tier in expenses for the first year. Various
suggestions were made as to the potential phasing of operations. Pat suggested
that new numbers be run based on the suggested phasing.
• The consensus of the operations committee was that the banquet room, the
senior center, the meeting rooms, and the play area be opened first as soon as
possible based on the construction schedule and that the fitness center, the gym,
and the teen center be opened September 1St
• Staff is to develop a new draft preliminary budget based on this phasing
approach, matching proposed personnel costs to programs and timed openings
and outlining potential ramifications to operations. This information is than to
be brought back to the Operations Committee with the Operations Committee
conclusions to go to the full City Council in January.
• Councilmember Carlson expressed her desire to have staffing assumptions
before any decisions are made.
• Pat asked about a City Council workshop in January and potential Park
Commission involvement.
• Tom noted two primary objectives; to operate the facility with less staff and to
make job descriptions multi-tasked.
Upcoming Meetings:
No additional operations committee meetings were scheduled at this time.
,K) PIN
December 18, 2002
Community Center Discussion Budget Preparation
Tom H., Ken V., Sandy B. & Gene V.
Objective: To prepare a rough draft discussion budget for dialogue with the operations
committee
Target date: Early January (Operations Committee)
Late January (City Council Workshop in January)
Assumptions:
1. Phased/delayed opening of Community Center per meeting of December 17, 2002
2. Phasing is based on construction schedule and revenue potential
3. Hours of operation are contingent on phasing schedule
4. All detail calculations/worksheets assumptions regarding staffing are to be
included
5. The allocation of costs and revenues to programs be included
6. Full implementation of all programs no later than 1-01-04
7. Tim Staley representing the Y will be asked to participate in the process as a
resource and to review assumptions
8. Lead times on staff hiring are to be minimized for cost control
9. The current relationship with the General Fund is to be maintained
Process:
1. Determine start dates for phasing each component, note differences between
practice and revenue producing openings
2. Calculate staffing needs consistent with the phasing
3. Job descriptions (positions) need to be defined broad enough to allow for multi-
tasking to reduce start up costs and lower long term personnel costs
4. Estimate all non-personnel costs consistent with phasing
5. Note all assumptions used in preparation of the discussion budget
6. Note all potential issues that will surface with a phased opening e.g. completed
but unused areas of the building, contraction/delay of full staffing, community
expectations
7. Coordinate phasing and marketing plan
Related Directives:
1. Report on construction budget
2. Report on total budget
31
Agenda Memo
December 23, 2002
OTHER BUSINESS:
,. 2003 Tobacco License Renewals
ACTION TO BE CONSIDERED:
Approve 2003 Tobacco License Renewals for the following:
Cooper's Restaurant
Green Mill Restaurant
Tobacco Express
Crowne Plaza
Tobak Shack
FACTS:
• These applications for renewal were not received in time to be considered at the
last regular City Council meeting of the year, therefore we are requesting review
at this time so the licenses will not lapse during the first week of 2003.
• Staff has reviewed the applications and deem them in order for approval.
Agenda Memo
December 23, 2002
OTHER BUSINESS:
0. 2003 PET SHOP LICENSE RENEWAL
ACTION TO BE CONSIDERED:
Approve 2003 Pet Shop License renewal for For Pet's Sake.
FACTS:
This application for renewal was not received in time to be considered at the last
regular City Council meeting of the year, therefore we are requesting review at
this time so the license will not lapse during the first week of 2003.
Staff has reviewed the application and deem it in order for approval.
33
Draft: 12/13/02
AMENDED AND RESTATED
DEVELOPMENT AGREEMENT
Dated December _, 2002
Relating to
TAX INCREMENT FINANCING DISTRICT NO. 2-4
Between
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
CITY OF EAGAN
and
INTERSTATE PARTNERS LLC
This Instrument Drafted by:
Faegre & Benson LLP
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, Minnesota 55402-3901
Telephone: (612) 766-7000
DEVELOPMENT AGREEMENT
THIS AGREEMENT, made and entered into as of this day of December,
2002, by and between the EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a
Minnesota municipal corporation (the "EDA"), the CITY OF EAGAN, a Minnesota
municipal corporation (the "City"), and INTERSTATE PARTNERS LLC, a Delaware
limited liability company (the "Developer"):
WITNESSETH:
WHEREAS, the EDA has created and established a Tax Increment Financing
District referred to as Tax Increment Financing District No. 2-4 (the "TIF District") in
connection with that part of the Development Program for Northeast Eagan Development
District No. 2 which has been established as a Redevelopment Project pursuant to Minnesota
Statutes, Section 469.028 (the "Redevelopment Project Area") and pursuant to the authority
granted by Minnesota Statutes, Sections 469.090 to 469.1081 and 469.001 to 469.047 and
Sections 469.174 through 469.179 (collectively, the "Acts"); and
WHEREAS, pursuant to the Acts, the EDA has adopted and the City has
approved a Redevelopment Plan (the "Redevelopment Plan") and a tax increment financing
plan (the "TIF Plan") to finance a portion of the public redevelopment costs of the
Redevelopment Project Area; and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and
the TIF Plan, the EDA has determined to provide substantial aid and assistance through the
financing of certain land acquisition, demolition, soil correction and public improvement
costs in the Redevelopment Project Area; and
WHEREAS, the Developer has proposed to acquire and subdivide certain
property within the Redevelopment Project Area to permit the construction of certain office
and retail facilities within the Redevelopment Project Area and the TIF District which the
EDA has determined will promote and carry out the Redevelopment Plan and TIF Plan; and
WHEREAS, this Agreement amends and restates the Development Agreement
dated as of October -, 2002 between the EDA, the City and the Developer (the "Original
Development Agreement"); and
WHEREAS, this Agreement has been approved by the governing bodies of the
EDA and the City following a public hearing duly called and held;
NOW, THEREFORE, in consideration of the mutual covenants and
obligations of the EDA, the City and the Developer, the parties hereby amend and restate the
Original Development Agreement and represent, covenant and agree as follows:
ARTICLE I.
DEFINITIONS. EXHIBITS, RULES OF INTERPRETATION
Section 1.1 Definitions. In this Agreement, the following terms have the following
respective meanings unless the context hereof clearly requires otherwise:
(a) Acquisition Agreement. The Acquisition Agreement dated the date hereof
between the EDA and Developer relating to acquisition and reconveyance of the Imre Parcel
and Darcom Parcel and attached as Exhibit E.
(b) Certificate of Completion. The certificate of completion to be executed and
delivered pursuant to Section 3.4, in the form of Exhibit B hereto.
(c) Ci___yt . The City of Eagan, Minnesota.
(d) Darcom Parcel. The parcel of property to be acquired by the EDA which is
described in Exhibit H hereto.
(e) Demolition and Soil Correction Costs. The costs of the City, the EDA and
Developer of demolition of existing structures on the Property and soil correction associated
with the Development.
(f) Developer. Interstate Partners LLC, a Delaware limited liability company, its
successors and assigns.
(g) Developer's Parcels. The parcel of property acquired or to be acquired by the
Developer which are described in Exhibit F hereto.
(h) Development. The Property and the Minimum Improvements to be
constructed thereon according to the Development Plans approved by the EDA and the City.
(i) Development Plans. Collectively, the preliminary plans, drawings and related
documents referred to in Exhibit D which establish certain design and construction standards
for the Improvements.
(j) EDA. The Economic Development Authority of the City of Eagan,
Minnesota.
2
(k) Improvements. The Minimum Improvements on any additional improvements
which may be constructed on the Property in accordance with the Development Plans.
(1) Imre Parcel. The parcel of property to be acquired by the EDA which is
described in Exhibit G hereto.
(m) Minimum Improvements. Each and all of the improvements to be constructed
on the Property, which shall include (i) one approximately 20,000 square foot single story
office building and (ii) retail buildings to be determined, presently expected to include one
approximately 12,000 square foot retail building and two approximately 7,000 square foot
retail buildings, as specified in the Development Plans identified in Exhibit D hereto, but
excluding any and all personal property.
(n) Mortgage and Holder. The term "mortgage" shall include the mortgage or
mortgages referenced in Article IV of this Agreement and any other instrument creating an
encumbrance or lien upon the Development or any part thereof as security for a loan. The
term "holder" in reference to a mortgage includes any insurer or guarantor (other than the
Developer) of any obligation or condition secured by such mortgage or deed of trust.
(o) Property. The real property which is included within the TIF District and
which is legally described in Exhibit A attached hereto.
(p) Public Acquisition and Relocation Costs. The costs to the City and the EDA
of acquiring the Imre Parcel and Darcom Parcel and any related relocation costs.
(q) Public Development Costs. The costs of the Public Improvements described
in Section 3.10.
(r) Public Improvements. The roads and other public infrastructure improvements
described in Exhibit H.
(s) Redevelopment Plan. The Redevelopment Plan for the Redevelopment Project
Area, as amended from time to time.
(t) Tax Increment Note (TIF Note). The Tax Increment Revenue Note to be
issued by the EDA to finance a portion of the costs of the TIF District, in substantially the
form attached as Exhibit C.
(u) Tax Increment Financing District (TIF District). Tax Increment Financing
District No. 2-4 created by the EDA pursuant to Minnesota Statutes Sections 469.174
through 469.179 and described in the TIF Plan adopted therefor.
(v) Tax Increment Financing Plan (TIF Plan). The plan for development of the
TIF District adopted by the EDA pursuant to Minnesota Statutes Sections 469.174 through
469.179 and approved by a resolution of the City Council adopted March 5, 2002.
3
(w) Other Terms. Terms defined in other sections of this Agreement have the
meanings given them.
(x) Unavoidable Delays. Delays which are the direct result of strikes, fire or other
casualty, war, material shortage, weather, causes beyond the constructing party's control, or
acts of God, or acts of any federal, state or local government unit, except those acts
anticipated or contemplated under this Agreement.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Legal Description of Property
B. Certificate of Completion.
C. Form of Tax Increment Note.
D. Development Plan Documents.
E. Acquisition Agreement.
F. Legal Description of Developer's Parcels.
G. Legal Description of Imre Parcel.
H. Legal Description of Darcom Parcel.
1. Description of Public Improvements.
J. Required Soil Correction Activities.
Section 1.3 Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the
laws of the state of Minnesota.
(b) The words "herein" and "hereof " and words of similar import, without
reference to any particular section or subdivision, refer to this Agreement as a whole rather
than any particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the
section or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are
inserted for convenience and reference only and shall be disregarded in construing or
interpreting any of its provisions.
4
ARTICLE H.
REPRESENTATIONS AND COVENANTS
Section 2.1 By the Developer. The Developer makes the following
acknowledgements, representations and covenants:
(a) The Developer has the legal authority and power to enter into this Agreement.
(b) The Developer has the necessary financial resources for acquisition of the
Property and construction of the Improvements.
(c) The Developer will, to the extent required by this Agreement, demolish the
buildings and other improvements on the Property and will construct or cause the
construction of the Improvements in accordance with the terms of this Agreement, the TIF
Plan and all local, state and federal laws and regulations, and will construct or cause the
construction of or pay the costs of construction of any site improvements, utilities, parking
facilities, or landscaping improvements which are necessary in connection with the
construction and operation of the Improvements.
(d) At such time or times as may be required by law, the Developer will have
complied with all local, state and federal environmental laws and regulations, will have
obtained any and all necessary environmental reviews, licenses or clearances under, and will
be in compliance with the requirements of the National Environmental Policy Act of 1969,
the Minnesota Environmental Policy Act, and the Critical Area Act of 1973.
(e) The Developer will obtain, in a timely manner, all required permits, licenses
and approvals, and will meet, in a timely manner, all requirements of all local, state and
federal laws and regulations which must be obtained or met before the Improvements may be
constructed.
(f) The Developer has conducted such investigation as it has deemed necessary
with respect to the establishment of the TIF District and the basis for the inclusion of the
Property therein and, with respect to this Development Agreement and its acceptance of the
TIF Note, is not relying on any representation or warranty of the EDA or the City with
respect to the due establishment thereof or its qualification as a "redevelopment district".
(g) The Developer's investment in the purchase of the Property and site
preparation, after giving effect to the TIF Note, will be at least 70% or more of the assessor's
current year's estimated market value and, accordingly, Minnesota Statutes, Sections
116J.993 to 116J.995, do not apply to this Development Agreement or the assistance
provided by the TIF Note.
5
Section 2.2 By the EDA and City. The EDA and City make the following
representations as the basis for the undertaking on its part herein contained:
(a) The EDA and City are authorized by law to enter into this Agreement and to
carry out their respective obligations hereunder;
(b) The Property is zoned for purposes which include the Development as
proposed, and the City has conducted and completed all environmental reviews and
assessments required to be undertaken by it under applicable law.
(c) The EDA intends to treat the issuance of the TIF Note as payment or
reimbursement for eligible costs under Minnesota Statutes, Section 469.176, Subd. 4; and to
allocate the payment or reimbursement to eligible costs in the following order: (a)
Demolition and Soil Correction Costs, (b) Public Development Costs and (c) Public
Acquisition and Relocation Costs. The Darcom Parcel is a property determined by the
EDA's consultants to contain structurally substandard buildings and, in any event, the
Developer's Parcel and the Imre Parcel are adjacent parcels necessary to provide a site of
sufficient size to permit an integrated development. The Demolition and Soil Correction
Costs, Public Development Costs, Public Acquisition and Relocation Costs and other eligible
costs exceed $500,000.
ARTICLE III.
CONSTRUCTION OF IMPROVEMENTS; PUBLIC IMPROVEMENTS;
OTHER DEVELOPER OBLIGATIONS
Section 3.1 Construction of Improvements. The Developer agrees that it will
construct or cause to be constructed the Minimum Improvements and any other
improvements which the Developer elects to construct on the Property substantially in
accordance with the Development Plans.
Section 3.2 Building Plans. Final Development Plans for the Improvements shall be
subject to approval by the City.
Section 3.3 Completion of Construction. Subject to Unavoidable Delays,
construction of the Minimum Improvements shall be completed prior to December 31, 2004,
except one of the $7,000 square foot retail buildings which shall be completed prior to
December 31, 2005. All construction shall be in conformity with the approved Development
Plans. Periodically during construction, but at intervals of not less than 30 days, the
Developer shall make reports in such detail as may reasonably be requested by the EDA
concerning the actual progress of construction.
Section 3.4 Certificate of Completion. Promptly after notification by the Developer
of completion of the Minimum Improvements, the EDA shall inspect the construction to
6
determine whether it has been substantially completed in accordance with the terms of this
Agreement, including the date for the completion thereof. In the event that the EDA
determines that the construction has been completed substantially in accordance with the
Development Plans and applicable regulations, the EDA shall furnish the Developer with a
Certificate of Completion in the form of Exhibit B. Such certification by the EDA shall be a
conclusive determination of satisfaction and termination of the agreements and covenants in
this Agreement with respect to the obligations of the Developer to construct or cause to be
constructed the Minimum Improvements and shall constitute a release of the Developer's
obligations hereunder.
Section 3.5 Property Acquisition. The real property necessary to be acquired for the
Development consists of the Developer's Parcels and the Imre Parcel. The Imre Parcel and
Darcom Parcel shall be acquired by the EDA and reconveyed to Developer in accordance
with the Acquisition Agreement. In lieu of the acquisition by the EDA of the Developer's
Parcels and reconveyance by the EDA of the Developer's Parcels to the Developer, the
Developer shall at its expense acquire good and marketable title to the Developer's Parcels
from the existing owners. The cost to the EDA of acquisition of the Imre Parcel and any
related relocation costs shall be considered a Public Acquisition and Relocation Cost
hereunder. The EDA makes no representation or warranty as to the status of title to the
Property or as to the suitability of the Property for the Developer's purposes.
Section 3.6 Demolition. Within nine months after the acquisition of any parcel of
Property, the Developer shall demolish all the buildings and other improvements thereon.
Any demolition costs paid by the Developer or EDA with respect to the Property shall be
deemed Demolition and Soil Correction Costs hereunder to the extent accompanied by
evidence of the reasonableness thereof.
Section 3.7 Relocation. The EDA shall pay any relocation costs required to be paid
by the EDA under Chapter 117, Minnesota Statutes, or any other law and shall be promptly
reimbursed by the Developer. Any relocation costs paid by or on behalf of the EDA
(including those reimbursed by the Developer) shall be considered Public Acquisition and
Relocation Costs hereunder to the extent accompanied by evidence of the reasonableness
thereof.
Section 3.8 Soil Correction. Any costs paid by the Developer to remedy any soil
correction problems described in Exhibit I hereto shall be deemed Demolition and Soil
Correction Costs hereunder to the extent accompanied by evidence of the reasonableness
thereof.
Section 3.9 Letter of Credit. As security for its obligations hereunder, the Developer
shall deliver to the EDA a Letter of Credit issued by a bank acceptable to the EDA. The
Letter of Credit shall be in an amount equal to the amount of the Public Acquisition and
Relocation Costs, Demolition and Soil Correction Costs and Public Development Costs
incurred or reasonably estimated to be incurred by the EDA hereunder less the amount of any
letter of credit provided under the Acquisition Agreement and shall otherwise be in a form
7
acceptable to the EDA. Upon reimbursement of the EDA by the Developer or direct
payment of costs by the Developer in accordance with Sections 3.5, 3.6 and 3.7 the amount
of the Letter of Credit shall be reduced by a corresponding amount. Upon the issuance of the
Certificate of Completion the EDA shall return the Letter of Credit to the Developer. The
EDA may draw on the Letter of Credit on the earlier of (i) 20 days prior to its expiration
date, or (ii) the occurrence of an Event of Default hereunder.
Section 3.10 Construction of Public Improvements. The City agrees to complete the
Public Improvements as a local improvement under Minnesota Statutes, Chapter 429, by
December 31, 2003, or such later date as may be approved by the Developer.
Section 3.11 Assessments. The City may assess all or any portion of the Property
and other benefited properties pursuant to Minnesota Statutes, Chapter 429, for that portion,
if any, of the cost of the Public Improvements which may be lawfully assessed against such
property, except as otherwise provided by agreement of the City. The parties agree that no
provision of this Agreement shall limit the right of the City to assess the Property for their
respective lawful share of the assessable costs of the Public Improvements. In addition, the
property owners shall pay the cost of the usual charges for water and sewer utility service for
the Property.
ARTICLE IV.
LIMITATION UPON ENCUMBRANCE, PROHIBITIONS
AGAINST ASSIGNMENT AND TRANSFER, SUBORDINATION
Section 4.1 Limitation Upon Encumbrance of Development. Prior to the issuance of
the Certificate of Completion, neither the Developer nor any successor in interest to the
Property or any part thereof shall engage in any financing or any other transaction creating
any mortgage or other encumbrance or lien upon the Property, whether by express agreement
or operation of law, or suffer any encumbrance or lien to be made on or attached to the
Property other than the liens or encumbrances attached for the purposes of obtaining funds to
the extent necessary for acquiring and developing the Property and making the Minimum
Improvements and such additional funds, if any, in an amount not to exceed the costs of
developing the project without the prior written approval of the EDA. The EDA shall not
approve any Mortgage which does not contain terms which conform to the terms of this
Article IV of this Agreement.
Section 4.2 Representation as to Development. The Developer represents and agrees
that its undertakings pursuant to this Agreement are for the purpose of implementation of the
Development. The Developer further recognizes that, in view of the importance of the
Development to the general welfare of the EDA and the substantial financing and other
public aids that have been made available by the EDA and the City for the purpose of making
the Development possible, the qualifications and identity of the Developer are of particular
concern to the EDA. The Developer further recognizes that it is because of such
8
qualifications and identity that the EDA is entering into this Agreement, and, in so doing, is
further willing to rely on the representations and undertakings of the Developer for the
faithful performance of all undertakings and covenants agreed by Developer to be performed.
Section 4.3 Prohibition Against Transfer of Property and Assignment of Agreement.
For the reasons set out in Section 4.2 of this Agreement, the Developer represents and agrees
that, prior to the completion of the Minimum Improvements as certified by the EDA:
(a) Except only transfers or encumbrances for the purpose of obtaining financing
necessary to enable the Developer or any successor in interest to the Property, or any part
thereof, to acquire and develop the Property and perform the Developer's obligations with
respect to the Development under this Agreement, and any other purpose authorized by this
Agreement, the Developer, except as so authorized, has not made or created, and will not
make or create, or suffer to be made or created, any total or partial sale, assignment,
conveyance, or any trust or power, or transfer in any other mode or form of or with respect to
this Agreement or the Development or any part thereof or any interest therein, or any
contract or agreement to do any of the same, without the prior written approval of the EDA,
which approval shall not be unreasonably withheld; and
(b) The EDA shall be entitled to require, except as otherwise provided in this
Agreement, as conditions to any such approval under this Section 4.3 that: (i) any proposed
transferee shall have the qualifications and financial responsibility, as determined by the
EDA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the
Developer, or, in the event the transfer is of or relates to part of the Development, such
obligations to the extent that they relate to such part; (ii) any proposed transferee, by
instrument in writing satisfactory to the EDA and in form recordable among the land records,
shall for itself and its successors and assigns, and specifically for the benefit of the EDA,
have expressly assumed all of the obligations of the Developer under this Agreement and
agreed to be subject to such obligations, restrictions and conditions or, in the event the
transfer is, of, or relates to part of the Development, such obligations, conditions, and
restrictions to the extent that they relate to such part; provided, that the fact that any
transferee of, or any other successor in interest whatsoever to, the Development or any part
thereof, shall, for whatever reason, not have assumed such obligations or agreed to do so,
shall not, unless and only to the extent otherwise specifically provided in this Agreement or
agreed to in writing by the EDA, relieve or except such transferee or successor from such
obligations, conditions, or restrictions, or deprive or limit the EDA of or with respect to any
rights or remedies or controls with respect to the Development or the construction of the
Improvements; it being the intent of this Section 4.3, together with other provisions of this
Agreement, that to the fullest extent permitted by law and equity and excepting only in the
manner and to the extent specifically provided otherwise in the Agreement no transfer of, or
change with respect to, ownership in the Development or any part thereof, or any interest
therein, however consummated or occurring, whether voluntary or involuntary, shall operate,
legally or practically, to deprive or limit the EDA, of any rights or remedies or controls
provided in or resulting from this Agreement with respect to the Development and the
construction of the Improvements that the EDA would have had, had there been no such
9
transfer or change; and (iii) there shall be submitted to the EDA for review all instruments
and other legal documents involved in effecting transfers described herein, and, if approved
by the EDA, its approval shall be indicated to the Developer in writing.
In the absence of specific written agreement by the EDA to the contrary, no such
transfer or approval by the EDA thereof shall be deemed to relieve the Developer from any
of its obligations with respect thereto which are not expressly assumed by the transferee
approved by the EDA.
Section 4.4 Subordination and Modification for the Benefit of Mortgagees.
(a) In order to facilitate the obtaining of temporary or permanent financing for the
acquisition and development of the Property and construction or purchase of the
Improvements by the Developer or others, the EDA agrees to subordinate its rights under this
Agreement to the holder of any mortgage entered into for the purpose of obtaining such
financing.
(b) In order to facilitate the obtaining of financing for the acquisition and
development of the Property and construction of the Improvements, the EDA agrees that it
shall agree to any reasonable modification of this Article IV or waiver of its rights hereunder
to accommodate the interests of the holder of the mortgage, provided, however, that the EDA
determine, in its reasonable judgment, that any such modification(s) will adequately protect
the legitimate interests and security of the EDA with respect to the Development.
ARTICLE V.
TAX INCREMENT NOTE
Section 5.1 Issuance of Tax Increment Note. Subject to the further provisions of this
Section, the EDA shall, upon completion of the Minimum Improvements and the issuance of
a the Certificate of Completion therefor, issue to the Developer a Tax Increment Note
substantially in the form of Exhibit C hereto. The principal amount of the TIF Note shall be
$500,000. The TIF Note shall bear interest at the rate of 7.00% per annum, and shall be
payable in semiannual installment payments payable on August 1, 2005 and each February 1
and August 1 thereafter to and including February 1, 2029. Interest accrued from the date of
issue shall be added to the principal amount. The TIF Note shall mature on February 1,
2029. The EDA may prepay the TIF Note in whole or in part on any scheduled payment
date. The TIF Note shall be issued in consideration of the Developer's funding of land
acquisition, demolition and relocation costs and construction of the Minimum Improvements
to be constructed under this Agreement.
The Developer covenants and agrees not to sell, transfer or convey the TIF Note
without the express written consent of the EDA; provided, however, that the Developer may,
without such consent, (i) pledge or grant a security interest in a TIF Note to a lender as
security for a loan or (ii) after 10 days' prior written notice to the EDA, transfer the TIF Note
10
to an institutional investor which has acknowledged in writing that (a) it is acquiring the TIF
Note for purposes of investment and not for resale, (b) it is not relying on any representations
or warranties of the EDA or City, express or implied, as to the availability or adequacy of the
tax increment to pay principal and interest or upon any funds of the City or EDA and (c) all
subsequent transfers shall meet such conditions. The Developer acknowledges that the EDA
makes no representations as to the adequacy of tax increments available to pay the TIF Note.
The TIF Note shall be payable solely from the available tax increment from the TIF
District received by the EDA to the extent provided in Section 5.2 hereof and the EDA shall
have no other liability on the TIF Note, nor shall the TIF Note be payable out of any funds or
properties of the EDA or City other than tax increment from the TIF District.
Section 5.2 Tax Increment Available for TIF Note. The semi-annual installments due
on February 1 and August 1 of each year shall be paid solely from the tax increment actually
received by the EDA from the Property, after deducting 10% of such increment for allowable
administrative expenses. Available tax increment shall be applied first to accrued and unpaid
interest and then to principal. No installments are required to be paid after February 1, 2029,
regardless of whether the TIF Note has been paid in full. Neither the EDA nor City shall
pledge or appropriate any available tax increment from the Property to the payment of any
obligation until the TIF Note has been paid in full.
ARTICLE VI.
EVENTS OF DEFAULT
Section 6.1 Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this
Agreement, unless the context otherwise provides, any one or more of the following events:
(a) Failure by the Developer to observe and substantially perform any covenant,
condition, obligation or agreement on its part to be observed or performed hereunder, if such
failure shall continue for a period of thirty (30) days after written notice of such failure is
given by the EDA or the City to the Developer; provided, however, that if such failure is of
such nature that it cannot with diligence be cured within thirty (30) days, and provided
further that within such thirty (30)-day period the Developer has commenced such cure and
thereafter diligently prosecutes such cure, such thirty (30)-day period shall be extended to the
period reasonably necessary to cure such failure;
(b) If the Developer shall admit in writing its inability to pay its debts generally as
they become due, or shall file a petition in bankruptcy, or shall make an assignment for the
benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the
whole or any substantial part of the Development;
(c) If the Developer shall file a petition under the federal bankruptcy laws; or
11
(d) If the Developer, on a petition in bankruptcy filed against it, be adjudicated a
bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing,
without the consent of the Developer, a receiver of the Developer or of the whole or
substantially all of its property, or approve a petition filed against the Developer seeking
reorganization or arrangement of the Developer under the federal bankruptcy laws, and such
adjudication, order or decree shall not be vacated or set aside or stayed within 120 days from
the date of entry thereof.
Section 6.2 Remedies on Default. Whenever any Event of Default occurs, the EDA
and the City may, in addition to any other remedies or rights given the EDA and the City
under this Agreement take any one or more of the following actions:
(a) suspend their performance under this Agreement until they receive assurances
from the Developer, deemed reasonably adequate by the EDA or the City, that the Developer
will cure its default and continue its performance under this Agreement;
(b) cancel or rescind this Agreement and the TIF Note;
(c) draw on the Letter of Credit;
(d) withhold the Certificate of Completion; or
(e) take whatever action at law or in equity may appear necessary or desirable to
the EDA or the EDA to enforce performance and observance of any obligation, agreement,
or covenant of the Developer under this Agreement.
Section 6.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to
the EDA is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay
or omission to exercise any right or power accruing upon any default shall impair any such
right or power or shall be construed to be a waiver thereof, but any such right and power may
be exercised from time to time and as often as may be deemed expedient. In order to entitle
the EDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to
give notice, other than such notice as may be required in this Article VI.
Section 6.4 No Additional Waiver Implied by One Waiver. In the event any
agreement contained in this Agreement should be breached by any party and thereafter
waived by another party, such waiver shall be limited to the particular breach so waived and
shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder.
12
ARTICLE VII.
ADDITIONAL PROVISIONS
Section 7.1 Conflicts of Interest: Representatives Not Individually Liable. No EDA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or
benefit financially therefrom. No member, official, or employee of the EDA shall be
personally liable to the Developer, or any successor in interest, in the event of any default or
breach by the EDA or for any amount which may become due to the Developer or successor
or on any obligations under the terms of this Agreement.
Section 7.2 Non-Discrimination. The provisions of Minnesota Statutes, Section
181.59, which relate to civil rights and non-discrimination, shall be considered a part of this
Agreement and binding on the Developer as though fully set forth herein.
Section 7.3 Notice of Status and Conformance. At such time as all of the provisions
of this Agreement have been fully performed by the Developer, the EDA and the City shall,
upon not less than ten days prior written notice by Developer, execute, acknowledge and
deliver without charge to Developer or to any person designated by Developer a statement in
writing in recordable form certifying that this Agreement has been fully performed and the
obligations hereunder fully satisfied.
Section 7.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party
to the other shall be sufficiently given or delivered if it is sent by mail, postage prepaid,
return receipt requested or delivered personally:
(a) As to the EDA:
Executive Director
Eagan Economic Development Authority
3830 Pilot Knob Road
Eagan, MN 55122
(b) As to the City:
3830 Pilot Knob Road
Eagan, MN 55122
13
(b) As to the Developer:
Interstate Partners LLC
860 Blue Gentian Road, Suite 175
Eagan, MN 55121
Attention: Gregory S. Miller, President
or at such other address with respect to any party as that party may, from time to time,
designate in writing and forward to the others as provided in this Section 7.4.
Section 7.5 Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
Section 7.6 Litigation; Undertakings. The Developer acknowledges that it has been
advised that certain property owners have commenced litigation questioning the validity of
the Tax Increment Financing District. Neither the City nor the EDA make any warranties as
to the outcome of the litigation or its potential impact on the Tax Increment Financing
District. In the event of a final judicial determination which invalidates the Tax Increment
Financing District or results in the Property not being included or includable in the Tax
Increment Financing District, the City and the EDA shall take any of the following actions
reasonably requested by the Developer: (i) reform the Tax Increment Financing District
under any available law in such manner that the District includes the Property and has the
maximum duration limit permitted by law, (ii) request the Legislature to enact remedial
legislation to authorize the action described in the previous clause, and (iii) approve and seek
Dakota County approval of tax abatement authority in a manner which approximately equals
the value of the tax increment subsidy described herein.
14
IN WITNESS WHEREOF, the EDA and the City have caused this Agreement to be
duly executed in their names and behalf and the Developer has caused this Agreement to be
duly executed as of the day and year first above written.
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
By
President
And By
Executive Director
CITY OF EAGAN
By
Mayor
And By
City Clerk
INTERSTATE PARTNERS LLC
By:
Gregory S. Miller, President
15
STATE OF MINNESOTA )
) ss
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _ day of ,
2002, by
and
the President and Executive
Director of the Eagan Economic Development Authority, a municipal corporation under the
laws of the State of Minnesota, on behalf of the Eagan Economic Development Authority.
Notary Public
16
STATE OF MINNESOTA )
ss
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2002, by Gregory S. Miller, the President of Interstate Partners LLC, a Delaware limited
liability company, on behalf of the company.
Notary Public
17
STATE OF MINNESOTA )
ss
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day of
2002, by and the Mayor and City Clerk of
the City of Eagan, a municipal corporation under the laws of the State of Minnesota, on
behalf of the corporation.
Notary Public
N41:910392.08
18
EXHIBIT A
DESCRIPTION OF PROPERTY
The Property is located in Dakota County, Minnesota and is legally described as
follows:
That portion of Lot 5 of The Robert O'Neill Homestead, Dakota Co., Minn.,
which lies northerly of the existing right-of -way of Trunk Highway No. 55.
2: That part of Lot 3, The Robert O'Neill homestead, Dakota Co. Minn.
described as follows:
Commencing at the intersection of the North line of said Lot 3 and the Westerly right
of way line of State Highway No. 49, thence Southerly along said right of way
line 150.0 feet to the point of beginning, thence Southerly along said right of
way line 160.0 feet, thence Westerly parallel to the North line of said Lot 3 a
distance of 245.0 feet, thence North parallel to the West line of said Lot 3 a
distance of 158.98 feet, thence Easterly 263.48 feet to the point of beginning.
Outlot E, Robins Addition
A-1
EXHIBIT B
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Interstate Partners LLC and or its successors or
assigns have fully and completely complied with the obligations of the Developer under that
document entitled "Development Agreement," dated between the Eagan
Economic Development Authority, the City of Eagan and Interstate Partners LLC with
respect to construction of the Minimum Improvements in accordance with the approved
construction plans and is and are released and forever discharged from its and their
obligations to construct the Minimum Improvements under such above-referenced
Development Agreement.
DATED:
EAGAN ECONOMIC DEVELOPMENT
AUTHORITY
By:
Its Executive Director
[Notary and Legal Description to be added so that instrument is in recordable form]
B-1
EXHIBIT C
$500,000
UNITED STATES OF AMERICA
STATE OF MINNESOTA
EAGAN ECONOMIC DEVELOPMENT AUTHORITY
TAX INCREMENT REVENUE NOTE
The Eagan Economic Development Authority, (the "EDA"), Minnesota, for
value received, promises to pay, but solely from the source, to the extent and in the manner
hereinafter provided, to (the "Owner") the principal sum of Five Hundred
Thousand Dollars ($500,000), in semi-annual installments commencing August 1, 2005 and
due on each February 1 and August 1 thereafter up to and including February 1, 2029 (each
being a "Scheduled Payment Date"), together with interest on the outstanding and unpaid
principal balance of this Note at the rate of 7.00% per annum. Interest on the outstanding
balance of this Note shall accrue from the date hereof and shall be added to the principal
amount on each February 1 unless paid. Semi-annual installment payments shall be applied
first to interest and then to reduction of the outstanding principal. Each payment on this Note
is payable in any coin or currency of the United States of America which on the date of such
payment is legal tender for public and private debts and shall be made by check or draft
made payable to the Owner and mailed to the Owner at the postal address within the United
States designated from time to time by the Owner.
This Note is subject to prepayment on any Scheduled Payment Date at the
option of the EDA, in whole or in part, upon payment to the Owner of the principal amount
of the Note to be prepaid, without premium or penalty.
EXCEPT AS PERMITTED BY THE DEVELOPMENT AGREEMENT,
THIS NOTE IS TRANSFERABLE ONLY WITH THE CONSENT OF THE EDA AND
ONLY UPON THE REGISTER OF THE EDA TREASURER, AS REGISTRAR, BY THE
OWNER HEREOF OR BY ITS DULY AUTHORIZED ATTORNEY.
This Note is a special and limited obligation and not a general obligation of the
EDA, which has been issued by the EDA pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section
469.178, subdivision 4, to aid in financing a "project", as therein defined, of the EDA
consisting generally of defraying certain costs incurred and to be incurred by the EDA within
and for the benefit of its Tax Increment Financing District No. 2-4. This Note is issued
pursuant to an Amended and Restated Development Agreement dated as of December
2002 between the EDA and the Owner (the "Development Agreement").
C-1
THE NOTE IS NOT A DEBT OF THE EDA OR THE STATE OF
MINNESOTA, AND NEITHER THE EDA, THE STATE NOR ANY POLITICAL
SUBDIVISION THEREOF SHALL BE LIABLE ON THIS NOTE, NOR SHALL THIS
NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN
AVAILABLE TAX INCREMENT, AS DEFINED BELOW.
The principal of and interest on this Note is payable solely from and only to
the extent of Available Tax Increment received by the EDA as of each Scheduled Payment
Date which has not previously been applied to payment of this Note. For purposes of this
Note, the term "Available Tax Increment" means 90% of all tax increment received in the
year preceding a Scheduled Payment Date with respect to the real property described in
Exhibit A of the Development Agreement. Such real property constitutes a portion of the
EDA's Tax Increment Financing District No. 2-4.
The EDA shall pay to the Owner on each Scheduled Payment Date all
Available Tax Increment on that date to the extent necessary to pay principal and interest
then due and any past due installment. To the extent that the EDA is unable to pay the total
principal and interest due on this Note at or prior to the February 1, maturity date
hereof as a result of its having received as of such date insufficient Available Tax Increment,
such failure shall not constitute a default under this Note and the EDA shall have no further
obligation hereon.
If the Development Agreement shall terminate pursuant to the terms thereof,
and in certain other circumstances specified in the Development Agreement, the Available
Tax Increment shall for each year thereafter be deemed to be zero, and this Note shall
thereupon be automatically canceled, without further obligation hereon of the EDA
whatsoever.
This Note shall not be payable from or constitute a charge upon any funds of
the EDA, and the EDA shall not be subject to any liability hereon or be deemed to have
obligated itself to pay hereon from any funds except the Available Tax Increment, and then
only to the extent and in the manner herein specified.
The Owner shall never have or be deemed to have the right to compel any
exercise of any taxing power of the EDA or of any other public body, and neither the EDA
nor any council member, officer, employee or agent of the EDA, nor any person executing or
registering this Note shall be personally liable hereon by reason of the issuance or
registration hereof or otherwise.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and
things required by the Constitution and laws of the State of Minnesota to be done, to have
happened, and to be performed precedent to and in the issuance of this Note have been done,
have happened, and have been performed in regular and due form, time, and manner as
required by law; and that this Note, together with all other indebtedness of the EDA
C-2
outstanding on the date hereof and on the date of its actual issuance and delivery, does not
cause the indebtedness of the EDA to exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF, the EDA of Eagan has caused this Note to be executed by the
manual signatures of the President and Executive Director of the EDA, all as of the day
of
EAGAN ECONOMIC DEVELOPMENT
ATTEST:
Executive Director
AUTHORITY
President
(Form of Transfer)
For value received, the undersigned Owner does hereby assign and transfer the
foregoing Note to the named Assignee, and the undersigned Treasurer of the Eagan
Economic Development Authority, as registrar, hereby certifies that the foregoing Note has
been transferred and registered on the bond register in the name of such Assignee.
Signature of Date of Transfer
Name of Assignee Signature of Owner Executive Director on Register
C-3
EXHIBIT D
Development Plan Documents
The Development Plans presently consist of the following diagram.
D-l
EXHIBIT E
ACQUISITION AGREEMENT
This Acquisition Agreement ("Agreement") is entered into as of this day of
2002, by and between the Eagan Economic Development Authority, a Minnesota
public body corporate and politic (hereinafter the "EDA"), and Interstate Partners LLC, a
Delaware limited liability company (hereinafter "Interstate") (collectively referred to as the
"Parties").
WHEREAS, it is believed that Mary E. Imre is the owner of the real estate and
DARCOM Partnership is the owner of one parcel depicted on the attached Exhibit "A"
(hereinafter the "Property"); and
WHEREAS, the EDA has created a tax increment financing district ("TIF District") to
redevelop the Property; and
WHEREAS, the EDA and Interstate have previously entered into an Amended and
Restated Development Agreement which includes the Property (the "Development
Agreement"); and
WHEREAS, Interstate has been unable to acquire the Property through direct
negotiation and has requested the EDA to acquire the Property through the use of eminent
domain and to subsequently sell the Property to Interstate to facilitate the redevelopment
plan; and
WHEREAS, prior to commencement of any eminent domain proceeding, the EDA
has requested and Interstate is willing to make payment to the EDA for any and all costs
incurred by the EDA in acquiring the Property and transferring the Property to Interstate,
including, but not limited to attorneys' fees, appraiser fees, acquisition fees and court costs,
as well as any other costs incurred by the EDA in the acquisition of the Property through
eminent domain.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:
AcquiSITION OF PROPERTY. The EDA shall pursue the acquisition of
the Property through negotiation or eminent domain.
2. OBLIGATION TO ACQUIRE THE PROPERTY FROM THE EDA. Upon the
EDA obtaining fee title to the Property, the EDA shall give written
notice thereof to Interstate and, within 90 days of the receipt of such
E-l
notice Interstate shall pay the purchase price described in paragraph 3 to
acquire the Property from the EDA and the EDA shall convey the title it
acquired to Interstate by quit claim deed. Thereafter Interstate shall
redevelop the Property in accordance with the Development Plan set
forth in the Development Agreement.
3. PURCHASE PRICE FOR THE PROPERTY. The purchase price for the :
Property shall be the cumulative total of all costs incurred by the EDA in
acquiring the Property and transferring the Property to Interstate
including, but not limited to, attorneys' fees, appraiser fees, acquisition
costs, relocation costs, court costs and all other costs. Notwithstanding
the above, Interstate shall indemnify the EDA for actual costs incurred in
regard to the EDA's acquisition of the Property.
4. LETTER OF CREDIT. As security for the indemnification set forth in
paragraph 3 above, Interstate must, within 20 days of receipt of the
EDA's appraised value for the Property, provide a letter of credit for one
and one-half times of said appraised value. The letter of credit shall be
in a form approved by the Attorney for the EDA.
5. DEVELOPMENT REQUIREMENT FOR THE PROPERTY. Interstate shall
develop the Property in a manner consistent with plans previously
submitted to the EDA.
Dated: , 2002
Dated: , 2002
EAGAN ECONOMIC DEVELOPMENT
AUTHORITY, a Minnesota public body
corporate and politic
By: _
Its:
By:
Its:
INTERSTATE PARTNERS LLC
a Delaware limited liability company
By:
Gregory S. Miller, its President
E-2
STATE OF MINNESOTA)
)ss.
COUNTY OF DAKOTA)
The foregoing instrument was acknowledged before me this day of.
by and
the and of EAGAN ECONOMIC
DEVELOPMENT AUTHORITY, a Minnesota body corporate and politic, on behalf of the
body corporate and politic.
STATE OF MINNESOTA )
)ss.
COUNTY OF
Notary Public
The foregoing instrument was acknowledged before me this day of
, by Gregory S. Miller the President of INTERSTATE PARTNERS LLC,
a Delaware limited liability company, on behalf of the limited liability company.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
SEVERSON, SHELDON, DOUGHERTY
& MOLENDA, P.A.
7300 West 147th Street, Suite 600
Apple Valley, MN 55124
(952) 432-3136
(RBB:206-20390)
E-3
EXHIBIT F
LEGAL DESCRIPTION OF DEVELOPER'S PARCEL
Outlot E, Robins Addition
2. That part of Lot 3, The Robert O'Neill homestead, Dakota Co. Minn.
described as follows:
Commencing at the intersection of the North line of said Lot 3 and the
Westerly right of way line of State Highway No. 49, thence Southerly along
said right of way line 150.0 feet to the point of beginning, thence Southerly
along said right of way line 160.0 feet, thence Westerly parallel to the North
line of said Lot 3 a distance of 245.0 feet, thence North parallel to the West
line of said Lot 3 a distance of 158.98 feet, thence Easterly 263.48 feet to the
point of beginning.
F-1
EXHIBIT G
LEGAL DESCRIPTION OF IMRE PARCEL
That portion of Lot 5 of The Robert O'Neill Homestead, Dakota Co., Minn., which
lies northerly of the existing right-of -way of Trunk Highway No. 55.
G-1
EXHIBIT H
LEGAL DESCRIPTION OF DARCOM PARCEL
That part of Lot 3, The Robert O'Neill homestead, Dakota Co. Minn. described as
follows:
Commencing at the intersection of the North line of said Lot 3 and the Westerly
right of way line of State Highway No. 49, thence Southerly along said right of
way line 150.0 feet to the point of beginning, thence Southerly along said right of
way line 160.0 feet, thence Westerly parallel to the North line of said Lot 3 a
distance of 245.0 feet, thence North parallel to the West line of said Lot 3 a
distance of 158.98 feet, thence Easterly 263.48 feet to the point of beginning.
H-1
EXHIBIT I
DESCRIPTION OF PUBLIC IMPROVEMENTS
[As reasonably determined by the City, subject to approval
by the Developer of the necessity and estimated costs thereof]
I-1
EXHIBIT J
REQUIRED SOIL CORRECTION ACTIVITIES
[To be determined by the Developer]
M1:910392.08
J-1
Agenda Memo
December 23, 2002
AGENDA ITEM:
Other Business:
D. PREMISES PERMIT RENEWAL
ACTION FOR CONSIDERATION:
Approve Premises Permit Renewal for Eagan High School Football Booster Club to
conduct a pull tab operation at Al Bakers, 3434 Washington Drive.
FACTS:
• The Premises Permit for Eagan High School Football Booster Club to conduct
pull tab operations at Al Baker's will expire December 31, 2002 and the
application was not submitted in time for the last regular Council meeting of the
year.
• Staff has reviewed the application for renewal and deem it in order for approval.
2003 Tubing Budget
19-Dec-02
Program Expenditures
Equipment Total
Seasonal and Program Capital
Personnel Clothing Supplies Expenditures Expenditures
Trapp Farm Park 8,170 100 400 8,670 6,717
Central Park 17,306 400 17,706 6,717
Shared 7,389 7,389
Totals 32,865 100 800 33,765 13,434
Program Revenues
Tubers Days Rate Revenue
Trapp Farm Park
Weekends 220 21 3.00 13,860
& Holidays
Central Park
Week Nights 60 42
Sub-total
Discounted Rate
Discounted Total
Weekends
& Holidays
Week Nights
220 31
Combined Total
Revenue Assumptions:
60 61
Sub-total
Discounted Rate
Discounted Total
Discounted Total
3.00 7,560
21,420
3.00 20,460
3.00 10,980
31,440
$ 42,288
Admission fees are for unlimited tubing.
Children less than 42 inches in height cannot tube alone.
Weekend, holiday and week night fees are the same.
Estimated stay per admission is 2 hours.
Each site has 75 tubes and estimates are based on 40 tubes being in use
on average over each 2 hour block of time.
1
19-Dec-02
Personnel Background
Trapp Farm:
Facility Operation:
8.25 Weeks $8.00/Hr
3 Emp/Hr 6.5 Weeks at 52 Hrs
3 Emp/Hr 1.75 Weeks at 50 Hrs
Sub-total
Discounted Rate
Discounted Total
Central Park:
8,112
2,100
10,212
0.80
8,170
Facility Operation:
13 Weeks
4 Emp/Hr 13 at 52Hrs $8.00 21,632
Sub-total 21,632
Discounted Rate 0.80
Discounted Total 17,306
Shared:
1 Employee 13 at 52Hrs $11.00 7,436
Training/Meeting Hours:
225 $8.00/Hr 1,800
Sub-total 9,236
Discounted Rate 0.80
Discounted Total 7,389
Discounted Total 32,864
Projected Weeks of Operation:
Trapp Farm:
January 4.00
February 2.50
December 1.75
8.25
Central Park:
January 4.00
February 4.00
March 2.50
December 2.50
13.00
a
19-Dec-02
Capital Amortization Years
4 5 6 7 8 9 10
Program Expenditures 33,765 33,765 33,765 33,765 33,765 33,765 33,765
Tubes $ 13,434 3,359 2,687 2,239 1,919 1,679 1,493 1,343
Total Annual Cost 37,124 36,452 36,004 35,684 35,444 35,258 35,108
Estimated Revenues 42,238 42,238 42,238 42,238 42,238 42,238 42,238
Budgeted Revenues 35,000 35,000 35,000 35,000 35,000 35,000 35,000
Projected Operating Results at Various Admission Rates
Assumes a six year amortization of the capital cost of the tubes.
Annual Revenue Projections at Admission Rates of:
Costs $ 3.00 $ 2.50 $ 2.00 $ 1.50 $
Revenues Minus Expenditures 6,284
(764) (7,812) (14,860)
14,096
(21,908)
Central Park Capital Costs Not Included In Amortization:
Construction expenses incurred to date
Estimated water connection not billed
7,894.77
30,000.00
37,894.77
The draft 2003 fee schedule also proposed a change to the tubing reservation system changing to:
A group fee of $4.00 per person for groups of 20 or more.
The reservations are made only on off peak times:
Mon - Thur 8:00 pm to 9:30 pm
Sunday 10:00 am to 11:30 am and 8:00 pm to 8:30 pm
No reservations for December 24, 25, 31 or January 1
Reservations only at the Trapp Farm Park
3
3
20 FEE
SCHEDULE
PARKS AND RECREATION CHARGES (cont'd)
The following charges are subject to
6.5% State sales tax:
Sunshelters (per day)
Residents Non-residents
Picnic kit (requires $50.00 damage deposit)
3 items
Each additional item
Chuckwagon grill (per day)
Canopy (per day)
Extra picnic tables, each
Trapp arm re rv4? tubin facility:
1-30 peo a (per u ate)
31-60 le (per ' ur rate)
61- pe0 (p ho te)
Fieldtfacility maintenance fees:
Traveling youth teams (per team)
Adult-up to 9 games (per team)
Adult-each additional game > 9
Concessions permit (maximum of 3)
$ .eo oo- 35.OO $ 60=00'55,00
7.00 10.00
3.00 5.00
36-N- 32.00 55,00
-X6:88. (A0-oo q&eo• ?a,oo
10.00 N/A
>7. 0 .0
10 0
00 1
"-ACL$1o.tX) N/A
474.% l95.E 556.60 310.00
40.00 per date 49-60 per date
2S AD '4'S -oo
215.00 N/A
Civic Arena rental 10A?&
lce,Prime time (2 m-10pm weekdays) 145.00 per hr. 145.00 per hr.
:SpdolW lr lO,*O J•.. 00 P&r he. F+tir lv%
Tennis courts (per court per hour) 300 ' 4 ,P0 o_
'(u,4i?a -'(Taip fi.., AA#- eM.C 3.v o Ix?^?sy 3? (??''k°`?
C.4?Yrwl pMK- ?lifi?J ?
fili?Il^? ftiSCY VtkMw fro!VVI-110 +.00 MI'Ot?. s.ev
. . -
20- Yo L?`?+• 41#;A)
Akto
ti