07/06/2021 - City Council Finance Committee
Finance Committee Meeting
Tuesday, July 6, 2021
4:30 PM
Red Fox Conference Room
Eagan City Hall
Agenda
I. Agenda Adoption
II. Review Park Facility Improvement Funding Options
III. 2022-2023 Budget and ARPA Funds Update
IV. Other Business
V. Adjournment
Agenda Information Memo
July 6, 2021, Finance Committee Meeting
II. Review Park Facility Improvement Funding Options
DIRECTION TO BE CONSIDERED:
Review and comment on the plan for park facility improvement options
Facts and Topics for Discussion
The City Council discussed at its April 2021 retreat the various park facility improvement needs and
funding options, including the possibility of conducting a referendum that if approved would allow
for the sale of bonds to provide funding.
The City Council directed the Finance Committee to research with Staff the various scheduling
options for such a referendum and priorities for the park facility improvements.
PROPOSED IMPROVEMENTS AND PROJECTED COSTS
Costs projected below are in a range of bond amounts from a low end of $38 million and a higher
amount of $47 million. These two figures were used to provide the estimated tax impacts noted below.
Costs of goods, labor and material are at an all-time high, with some predications suggesting a slow
down over the next 18 months.
A.) Eagan Community Center: add space for senior programs, add fitness/wellness related space,
create another elevator for easier access to the lower level from main entry, update indoor
playground significantly, replace all mechanical systems in the building, reconstruct the front
desk for more functional access, and create possible additional space for storage and for the
ECVB.
The ECC improvements have an updated cost estimate of $10,000,000
B.) Eagan Art House: demo the current structure and rebuild an approximate 10,000 square foot
facility that would integrate an Art house feel with efficient mechanical operations and have a
quality multipurpose opportunity to it for added facility rental options for the community and
create unique and creative indoor/outdoor spaces.
The Art House rebuild has an updated cost estimate of $15,000,000
C.) Eagan Civic Arena: update and create more function in the lobby spaces, update locker room
facilities to allow for additional showers to be installed, update and increase multipurpose
spaces, enhance facility mechanical systems, and create more flexibility in facility use.
The Civic Arena improvements have an updated cost estimate of $5,500,000
(Partnership on an outdoor hockey rink is currently in process. The above Civic Arena costs were
reduced from a previous report, as the outdoor hockey rink will meet a certain need, and is
being accomplished in partnership, including a significant donation.)
D.) Cascade Bay: install entry feature as people come into the park – similar to entry fountains,
update concessions building, create a large rentable cabana in island of the lazy river, possibly
install more adult related hot tubs into the hillside of the park (may be more challenging and
costly than first anticipated), and create private cabana related items along the south border of
the park to enhance private rental opportunities.
The Cascade Bay improvements have an updated cost estimate of $3,000,000. This number has
gone down because of recent investments at the park during the COVID shutdown.
E.) Indoor athletic facility: Through staff’s research and experience, there are multiple ways this
could be achieved – most affordably a dome like structure over an athletic field. A more
significant option could be a permeant structure that would have greater energy efficiency and
offer year-round use on bad weather days in Minnesota. The cost for such a facility could be a
wide range from $5M to more than $50M pending size and complexity. In the last discussion
with the entire council, this particular item was identified as an item that has been discussed for
years, but the option to consider moving forward may depend on a partner to help with the
construction and/or operations costs. To date, we have not received any groups that have
come forward with a partnership option yet, nor have we announced partnership opportunities
for such a facility.
The “dome” option facility has an updated cost estimate of $6,000,000 to $12,000,000; depending on
the size, location and the quality of soils, parking and other mitigation efforts needed at the selected
site.
TIMING FOR POSSIBLE REFERENDUM
Projected cost for special election is at least $30,000
Earliest for a referendum would be November 2022 election
IMPLICATIONS OF A REFERENDUM ON THE 2022/2023 BUDGETS
Special election funding
Consultant expenses
Informational Material
FINANCIAL IMPACT OF REFERENDUM
PARTNERSHIPS UNDER CONSIDERATION
Staff will discuss further at the Finance Committee Meeting
NEXT STEPS AND OTHER CONSIDERATIONS
Joint meeting of the City Council and APrC is scheduled for the September 14, 2021 Special City
Council meeting workshop on September 14
Check in with the full City Council (Consider at the August Workshop, in concert with budget
discussion)
Do we attempt to fund the Art House project with state bonding money, either in whole or part?
Is there a time that we solicit, and how for partnerships for an indoor athletic turf facility? Even
with a third of the overall cost raised by a partner, is this a possibility. OTHER possible ideas could
be to do a low-cost, long term lease and work with a private contractor to build and operate an
Property Type Value $ 39M $ 47M
Residential Homestead 336,005$ 82$ 99$
Commercial 1,000,000$ 481$ 580$
* Assumes 20 year bonds at TIC 2.35%
Bond Issuance size*
Estimated Annual Tax impact to Residential and Commercial Property
athletic bubble for the community. Other possible regionally located sports venues could also
provide this support to where the city would not require building this specific facility.
Do we engage a professional firm and/or consultant to help navigate a referendum plan for the
City?
Begin the process of soliciting partnerships for certain parks facilities improvements – what would a
partnership for a facility look like? Could something be done through a regional state bond funded
facility for local needs?
Each project will have its own planning, design, and engagement opportunities to be certain we can
meet the majority of the City’s needs with this effort.
Shall the focus include special election or general election day, 2022 (later?)
Agenda Information Memo
July 6, 2021, Finance Committee Meeting
III. 2022/2023 Budget and ARPA Funds Update
Staff will provide a status update on the 2022/2023 budget process and the American Rescue Plan Act
Funds.