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09/11/2008 - City Council Special SPECIAL CITY COUNCIL MEETING THURSDAY SEPTEMBER 11, 2008 5:30 P.M. EAGAN ROOM-EAGAN MUNICIPAL CENTER AGENDA 1. ROLL CALL AND ADOPTION OF THE AGENDA P• II. MVTA UPDATE REGARDING STATUS OF CEDAR GROVE TRANSIT STATION AND DESIGN PROGRAM III. RECEIVE PRESENTATION OF DAKOTA COUNTY COMMERCIAL/INDUSTRIAL STUDY IV. DISCUSS ADVANCED COMMUNITY INFORMATION AND VISIONING STATEMENT FOR NOVEMBER REFERENDUM V. OTHER BUSINESS VI. VISITORS TO BE HEARD VII. ADJOURNMENT Agenda Information Memo September 11, 2008 Eagan City Council Workshop II. CEDAR GROVE TRANSIT STATION MINNESOTA VALLEY TRANSIT AUTHORITY DIRECTION REQUESTED: Receive a presentation by Minnesota Valley Transit Authority (MVTA) representatives regarding the status of the Cedar Grove Transit Station project and provide input regarding design themes being developed for the Cedar Avenue Bus Rapid Transit (BRT) Corridor. FACTS: • Bus Rapid Transit (BRT) is a new form of public transportation that uses public roads, right-of-way and transit advantages to provide dependable, high-speed bus service regardless of weather or traffic conditions. The first phase of BRT will begin operation along the Cedar Avenue corridor in September 2009 between Lakeville and the Mall of America, as part of the region's Urban Partnership Agreement: Innovative Choices for Congestion Relief. • Minnesota has been awarded $133.3 million through the U.S. Department of Transportation's Urban Partnership Agreement (UPA) program for strategies to reduce traffic congestion in the Twin Cities. Money from the UPA will be used to improve traffic flow on 1-35W and the Cedar Avenue Freeway (TH 77) between downtown Minneapolis and Dakota County suburbs. The use of the funding for the transit station construction requires operation of the stations by September 2009. • Five new transit stations will be constructed to accommodate the Cedar Avenue Corridor. The Cedar Grove Transit Station will be located between TH 77 (Cedar Avenue) and Nicols Road at the Cedar Grove Parkway intersection in Eagan. • Other Cedar Avenue BRT Corridor stations and stops will be constructed near 140th Street, 147th Street and 155th Street (adjacent to the existing Apple Valley Transit Station next to the Carmike Cinema), in Apple Valley, and at 179th Street and Cedar Avenue, in Lakeville. • The Cedar Grove Transit Station planning team includes the following agencies and companies: MVTA, MnDOT, Met Council, City of Eagan, and the design consultant, TKDA. • Site grading is planned to be under way this fall in order to meet the required schedule. Soil tests have identified issues at the site that have slowed this schedule, but are being worked through by the planning team. Issues include petroleum residue from a former gas station on the site; MnDOT, as the current owner, is responsible to address this site remediation. The existing berm on the site, constructed as part of the Cedar Avenue Freeway includes some construction debris debris; i.e. concrete, bituminous, asbestos, etc. MVTA will address the proper disposal of said material during site construction. • Representatives of MVTA and their consultant, TKDA, want to provide the City Council with a status update on the Cedar Avenue BRT Corridor and the Cedar Grove Transit Station and receive comments and address questions. ATTACHMENTS: • Site Plan, page. Minnesota Valley fr nslt Authority MINNESOTA VALLEY TRANSIT AUTHORITY CEDAR GROVE TRANSIT STATION PARK AND RIDE NICOLS ROAD EAGAN, MN _ ' - - - K - - _ LOCATION KEY 48 ff i 48 ~ Y - i- ~ - ~ : re ue r+ccoxo we t _ _ TKDA ENGI~NEERS- ARCHITECTS -PLANN RS 8 - FF oES o o - ss-- `THE i L e a 13621.001 Agenda Information Memo September 11, 2008 Eagan City Council Workshop III. RECEIVE PRESENTATION OF DAKOTA COUNTY COMMERCIAL/INDUSTRIAL STUDY DIRECTION REQUESTED OF THE CITY COUNCIL: To receive a presentation from the Dakota County CDA regarding its Commercial Industrial development study and provide direction to staff regarding its use by the City FACTS: ? In 2007, the County Board adopted six Strategic Initiatives for Economic Development in Dakota County in order to help enhance and coordinate the economy at a regional level. One of those six initiatives relate to coordinating strategic infrastructure and land development, including brownfield redevelopment, telecommunications and commercial/industrial development. ? To address commercial and industrial development needs, the CDA hired Maxfield Research to complete a county-wide commercial-industrial market study to assess supply and demand in all Dakota County cities and townships through 2030. That study was completed in May of 2008 with conclusions made for three categories: commercial/retail, office and industrial development. ? The purpose of this presentation is to provide the study findings and ask the Council for direction as to how best to use this information as part of the City's economic growth strategy. ? The study was being completed during the finalization of the City's Comprehensive Guide Plan update. As a consequence, the Economic Development Chapter of the draft plan included a list of findings from the study related to Eagan, and a basic update of statistical data, with the expectation that the City would use the outcome of the study as the basis of a more complete Chapter update. ? The Council previously authorized the solicitation of volunteers from the business community to participate in a task force exercise to provide input to that update. HKG included the facilitation of this exercise in its scope of work for the Comp Plan update. ? If the Council still wishes to proceed in this manner, a request for volunteers would be included in upcoming communications including the Eagan Business News, Chamber of Commerce Weekly email, the City website and other venues and the list of volunteers will be presented to the Council at an upcoming meeting to consider appointments. ATTACHMENTS: • Dakota County C/I Study Summary of Findings 5 • Full report available upon request 1~ SUMMARY OF FINDINGS Introduction Maxfield Research Inc. was engaged by the Dakota County Community Development Agency (Dakota County CDA) to undertake a market study that projects the amount of commercial and industrial space and land needed in the County through 2030. The study provides demand esti- mates for the County's 11 largest communities and the remainder of the County as a whole. Detailed calculations of commercial/retail, office, and industrial demand from 2008 to 2030, pre- sented in five year increments, can be found in the Demand Analysis and Recommendations sec- tion of the report. The following are key highlights from the commercial and industrial market analysis. Key Findings 1. Dakota County is experiencing strong household growth as the urban fringe of the Twin Ci- ties Metro Area expands further into the County. An additional 53,000 households are pro- jected to be added from 2008 to 2030, which will create demand for more retail and services in the County. 2. While 53,000 households are projected to be added between 2008 and 2030, the growth rate is slower than previous decades, coinciding with slower growth throughout the Twin Cities. Thus, annual demand for new commercial and retail space will be less than in previous dec- ades. 3. Outer-ring suburbs will see the greatest growth between 2010 and 2030. These include Lakeville, Rosemount, Farmington, Inver Grove Heights, and Apple Valley. Strong house- hold growth in these communities will lead to greater potential to support additional retail and commercial uses. 4. The number of jobs in Dakota County is projected to grow by about 58,000 between 2008 and 2030 (+31%). This is a much greater growth rate than the Twin Cities Metro Area (17%), but slower than during past decades. 5. The aging of the population will contribute to slower job growth rate between 2010 and 2030. Compared to past decades, the ratio of people entering the labor force to those leaving the labor force will narrow. This slower job growth will have an impact on the growth of businesses and hence, the need for new commercial and industrial space will also slow. 6. Communities in the northern part of Dakota County that are reaching housing development capacity are not projected to grow much through 2030 in terms of population and house- holds. However, because these northern communities have good access to a large labor force, they are still projected to draw employers, resulting in greater job growth. MAXFIELD RESEARCH INC. 1 SUMMARY OF FINDINGS 7. In 2006, Dakota County had 78.7 million square feet of commercial, office, and industrial space with industrial being the greatest (50.8%) followed by commercial (30.9%) and office (18.3%). 8. From 2008 to 2030, it is expected that the demand for office space will grow the most, by 49.3% (from 14.4 to 21.5 million square feet), followed by commercial at 48.1% and indus- trial at 20.3% (from 40.3 to 48.5 million square feet). Commercial/Retail 9. From 2000 through 2006, approximately 260 commercial/retail buildings totaling 5.6 million square feet were added in the County, or almost one-quarter of the County's total space. 10. The rise of big-box stores has been a retail trend over the past decade throughout the Nation and Twin Cities. Since the beginning of this decade, over one-third of the commercial space added in Dakota County has been big-box stores such as SuperTarget, Super Wal-Mart, Sam's Club, Gander Mountain, and HOM Furniture. 11. Demand was calculated for an additional 10.5 to 12.0 million square feet of commercial and retail space in the County from 2008 to 2030. This calculated demand equates to about 2.5 million square feet every five years between now and 2030. However, demand will be great- er during the beginning of next decade and then slow through 2030 as household growth slows. 12. Total projected demand for commercial/retail space and land in Dakota County, ranked by community, from 2008 to 2030 is as follows: Lakeville = 2,900,000 Sq. Ft. 250 Acres Apple Valley = 1,900,000 Sq. Ft. 160 Acres Inver Grove Heights = 1,575,000 Sq. Ft. 135 Acres Rosemount = 1,475,000 Sq. Ft. 125 Acres Farmington = 875,000 Sq. Ft. 70 Acres Eagan = 750,000 Sq. Ft. 65 Acres Burnsville = 675,000 Sq. Ft. 60 Acres Hastings = 675,000 Sq. Ft. 55 Acres Mendota Heights = 175,000 Sq. Ft. 15 Acres West St. Paul = 150,000 Sq. Ft. 15 Acres South St. Paul = 125,000 Sq. Ft. 10 Acres Remainder of County = 50,000 Sq. Ft. 5 Acres Total = 11,325,000 Sq. Ft. 965 Acres 13. Demand for retail/commercial space is projected to be greatest in Lakeville. Lakeville will have strong household growth, and it currently has less retail space per household than other more mature communities in the northern part of the County. MAXFIELD RESEARCH INC. 2 SUMMARY OF FINDINGS Office 14. Dakota County had an inventory of about 14.4 million square feet of office space in 2007. Nearly half of the space was located in Eagan (7.0 million square feet). Burnsville and Men- dota Heights had a similar amount of space (about 1.8 million square feet). Overall, a dis- proportionate amount of the office space is located in the northern most portion of the Coun- ty, indicating strong appeal of this area for office tenants versus more distant locations. 15. Most of the demand for office space in the County is from smaller businesses seeking spaces with less than 5,000 square feet. Almost three-quarters of the County's Financial Services & Real Estate and Professional and Business Services firms have fewer than five employees. 16. There are eleven corporate office buildings in Dakota County; all are located in Eagan. These buildings include, among others, Northwest Airlines, Blue Cross Blue Shield, West Group, Unisys Corporation, and Ecolab. 17. From 2000 to 2006, Dakota County added an additional 3.5 million square feet of office space. Eagan added the most space, totaling approximately 1.4 million square feet. 18. Demand was projected for an additional 6.5 to 7.5 million square feet of office space in Da- kota County between 2008 and 2030 to accommodate office employment growth. Demand will be greater during the beginning of next decade and then slow through 2030 as employ- ment growth slows. 19. Total projected demand for office space and land in Dakota County, ranked by community, from 2008 to 2030 is as follows: Eagan = 2,500,000 Sq. Ft. 215 Acres Lakeville = 1,175,000 Sq. Ft. 100 Acres Inver Grove Heights = 800,000 Sq. Ft. 70 Acres Mendota Heights = 725,000 Sq. Ft. 60 Acres Apple Valley = 700,000 Sq. Ft. 60 Acres Burnsville = 600,000 Sq. Ft. 50 Acres South St. Paul = 125,000 Sq. Ft. 10 Acres Farmington = 125,000 Sq. Ft. 10 Acres Rosemount = 125,000 Sq. Ft. 10 Acres Hastings = 100,000 Sq. Ft. 10 Acres West St. Paul = 75,000 Sq. Ft. 5 Acres Remainder of County = 50,000 Sq. Ft. 5 Acres Total = 7,100,000 Sq. Ft. 605 Acres 20. Demand for office space is projected to be greatest in Eagan. Eagan is highly attractive for larger office tenants because of its excellent highway access, close proximity to the airport, and short distance to the core of the Twin Cities. Mendota Heights and Burnsville also have good locations but have little remaining land available for new office space. MAXFIELD RESEARCH INC. 3 7 SUMMARY OF FINDINGS Industrial 21. Dakota County experienced job growth during the first half of this decade in about every in- dustry sector except manufacturing. This is a trend that has been experienced by most places in the Country, as manufacturing declined sharply after the recession that began in 2001. The decline of manufacturing employment is a trend that is likely to continue for at least the next few decades in the Twin Cities. 22. Dakota County had an inventory of about 980 industrial buildings with about 40 million square feet of space in 2007. Eagan (13.5 million square feet) and Burnsville (8.9 million square feet) account for 55% of the County's total industrial space. 23. A total of 17.8 million square feet of industrial space was added in Dakota County over the past 20 years (1987 to 2006). Of this total, 79% was warehouse space and 15% was manu- facturing space. Some of the strongest demand for industrial space is among wholesale trade, trucking, and storage businesses servicing the Minneapolis-St. Paul International Airport. 24. From 2000 to 2006, Dakota County added an additional 4.2 million square feet of industrial space in 148 buildings. Of this total, Eagan added 1.4 million square feet followed by Burnsville with about 940,000 square feet. 25. Demand is projected for about 7.6 to 8.7 million square feet of industrial space in Dakota County between 2008 and 2030 to accommodate industrial employment growth. Demand will be greater during the beginning of next decade and then slow through 2030 as household and employment growth slows. 26. Total projected demand for industrial space and land in Dakota County, ranked by commu- nity, from 2008 to 2030 is as follows: Lakeville = 2,300,000 Sq. Ft. 235 Acres Eagan = 2,175,000 Sq. Ft. 230 Acres Inver Grove Heights = 1,100,000 Sq. Ft. 115 Acres Burnsville = 725,000 Sq. Ft. 75 Acres Rosemount = 475,000 Sq. Ft. 50 Acres Mendota Heights = 375,000 Sq. Ft. 40 Acres Apple Valley = 325,000 Sq. Ft. 35 Acres Farmington = 300,000 Sq. Ft. 30 Acres South St. Paul = 225,000 Sq. Ft. 25 Acres Hastings = 150,000 Sq. Ft. 15 Acres West St. Paul = 25,000 Sq. Ft. 5 Acres Remainder of County = 50,000 Sq. Ft. 5 Acres Total = 8,225,000 Sq. Ft. 860 Acres MAXFIELD RESEARCH INC. 4 Agenda Information Memo September 11, 2008 Special City Council Meeting IV. DISCUSS ADVANCED COMMUNITY INFORMATION AND VISIONING STATEMENT FOR NOVEMBER REFERENDUM ACTION TO BE DISCUSSED: • To review and discuss the proposed referendum fact sheet and provide direction to staff on any additions/changes • To discuss and frame the visioning statement for the former Carriage Hills Golf Course. FACTS: • At the September 2, 2008 City Council meeting, the Council formally approved the following ballot language for the November 4 referendum regarding the proposed acquisition of the former Carriage Hills Golf Course: Shall the City of Eagan be authorized to issue and sell its general obligation bonds in a principal amount not to exceed $10,250, 000 for the purpose of acquiring approximately 120 acres of land formerly known as Carriage Hills Golf Course for public facilities, recreation, and open space uses? • As the Council requested, staff has been working to prepare two documents for Council review and discussion-the referendum fact sheet and the visioning document. • The fact sheet, which is intended to be an information piece for the community, is proposed to be distributed to all households in Eagan through the Experience Eagan newsletter, which is scheduled to arrive in homes in mid October. • The questions that are answered in the proposed fact sheet are questions that are commonly asked of City staff with regard to the referendum. • At the workshop, the City Council is asked to discuss the fact sheet and provide any directions to staff on additions and/or changes. • The feedback on the fact sheet is needed at the workshop on the 11th in order that the document can be edited by staff, reviewed by the City Attorney, and prepared for formal Council consideration at the September 16 regular City Council meeting (under the Administrative Agenda). Final approval of the fact sheet is needed on the 16th in order to meet the printing deadlines of the newsletter. • The Council is also asked to discuss the visioning statement, which as staff understands it, is intended to provide additional insight to voters as they prepare to vote on the referendum. • Per the direction of the Council, staff has been working with consultant Rusty Fifield of Hoisington Koegler Group, Inc. (HKGi) to prepare a framework to assist the Council with their visioning discussion on the 11th • Given the limited time between the September 2 Council meeting and the packet distribution for the workshop, the visioning statement framework will be sent to the City Council in a supplemental information memo on Tuesday, September 9. • The timeframe for the publication of the visioning document is not as tight as the fact sheet; however, the final visioning statement must be approved by the time the newsletter is distributed given that the fact sheet refers residents to the City's website for a copy of the visioning statement. • In addition to the fact sheet going out in the newsletter, information pertaining to the referendum, including a historical chronology of events, the ballot question, the fact sheet, and the visioning document, etc. are all proposed to be posted on the City's Website. September 11, 2008 Agenda Information Memo IV. Discuss Advanced Community Information and Visioning Statement for November Referendum Page 2 ATTACHMENTS: • Enclosed on pages I I through 13- is the draft Referendum Fact Sheet proposed to be distributed to the community through the Experience Eagan newsletter. (Pending final review by the City Attorney.) • As noted above, the visioning statement framework being prepared by staff, with assistance from HKGi, will be distributed to the City Council through a supplemental information memo on Tuesday, September 9. /0 Fact Sheet For Newsletter Piece on Carriage Hills Referendum First Drufi Newsletter headline: Public to Decide Future of Carriage Hills Land Sample opening paragraphs: Should the City of Eagan acquire 120 acres of land formerly known as the Carriage Hills Golf Course? That's just part of the question voters will be asked to decide in a referendum on the November 4, 2008 ballot. After four years of litigation regarding the future of the property, the ballot question lets voters choose whether the City should acquire the land for a cost of $10.25 million or whether a private home builder should be allowed to proceed with a mixed residential development on 90 acres of the site, but preserving 30 acres throughout the site as undeveloped space. [Include some line about how we got to this point: The ballot initiative comes as a direct result of the settlement of a lawsuit between a developer and the city, which created the opportunity and set the price...) How would the land be used if the City acquires the parcel? What are the developers plans if the land is privately developed? What's the impact on voters, either way? These are just some of the questions addressed in the following fact sheet prepared to offer voters information which may be useful to their decision. QUESTIONS & ANSWERS 1. What is the Carriage Hills property and where is it located? Answer: Carriage Hills is the name of a 120 acre tract of land east of Lexington Avenue near Yankee Doodle Road and Westcott Woodlands. It was used as a privately run golf course from 1965 until it closed in 2004 2. What is the exact ballot question? Answer: "Shall the City of Eagan be authorized to issue and sell its general obligation bonds in a principal amount not to exceed $10,250,000 for the purpose of acquiring approximately 120 acres of land formerly known as the Carriage Hills Golf Course for public facilities, recreation, and open space uses? " 3. What does a "yes" vote on the ballot question mean? Answer: A "yes" vote means you approve of the city acquiring the 120 acres of land for $10.25 million. It means taxes on your property would increase for the next 20 years to pay off the cost of the general obligation bonds used to finance the land purchase. It also means, legally, the land can never be used for private residential or industrial development [Government never says never, so reword to indicate what the wording of the ballot excludes and how hard it excludes it], and can never be resold for development. The City would acquire the property and hold the land COnlnlent [DM1]: MGD--don't include this comment at all. Always a possiblity that these uses could occur. Il for future use. At such time as there are identified purposes or community needs, the City must use the land in only three ways-as public facilities, as open space, and for recreational purposes. While the current City Council cannot bind the actions of a future City Council, they have adopted a Visioning Statement intended to inform the public about allowable uses under those three property categories and how they envision a community conversation and decision on future uses should be made. .4. What does a "no" vote mean? Answer: A "no' vote means the current Formatted: Bullets and Numbering landowner, Wensmann Homes, is allowed to develop up to 480 units of mixed-use housing (including single family homes, townhomes, and apartments) on 90 acres of the site, but must leave public access to a total of 30 acres spread throughout the site as undeveloped but privately owned space. Subject to Met Council approval, the property is zoned Planned Development. The timing of any construction decision is up to Wensmann. While Wensmann is free to sell the property to a third party, any new owner would be bound by the same approvals and restrictions that currently apply to Wensmann in the Planned Development. 5 What happens if I don't vote either "yes" or "no" on the ballot question? Answer: Unlike a state ballot question, a non-vote on this Eagan ballot question has no effect on the outcome, other than to reduce the number of voters on the question. A non-vote is not counted for or against the question. The question is decided by a majority of those who do vote either "yes " or "no. " 6.__ Why isn't there one specific land use or public purpose for the property identified in the ballot question? Answer: The question comes before the voters as a result of contingent settlement of a four year lawsuit against the City. Following that settlement, two public open houses were held prior to the adoption of the ballot question. Approximately 80 residents offered numerous ideas of how the land could or should be used. See the Web site for a complete list, however, the Council selected the following land uses for the ballot question: public facilities, recreation, and open space uses. 7. What's allowed under those three uses of public facilities, recreation, and open space? Answer: See the [Visioning Statement on] the City Web site. 8. Should the referendum pass, what would happen next? Answer: The City would then purchase the land in January of 2009, per the settlement agreement, for the agreed upon purchase price. The land would then be held or use to meet future public needs or desires. There is no immediate proposal for what to do with the land. A public process to evaluate needs, costs, and benefits, for future public facilities, open space and recreational opportunities _is cllificivated to occur prior to land use decisions by the City Council. 9. If the bond referendum passes, what will that do to my taxes? Property taxes Formatted: Bullets and Numbering would go up. A preliminary estimate, not taking into account changes in interest rates or the timing of the bond sale, indicates that for a home with a market value of $300,000 the annual increase would be approximately $29. For a home with a market value of $200,000 the annual increase would be approximately $18 and for a market value of $150,000 the increase would be nearly $13 a year. la 10. Is there a difference to My taxes if the land develops vs. if it doesn't? Answer: Assuming the property develops with the full 480 units with the mix and per unit values projected by the developer, the property would generate approximately $432, 000 in Eagan property taxes per year once full development is reached. if on the other hand, the referendum passes the City will pay approximately $830, 000 per year for 20 years to acquire the property. City-owned land is typically off of the tax rolls and does not generate property tax income. Whether the property develops privately or is owned by the City there may or may not be additional demand for City services to serve that location. Il: Does the $10.25 million include operational or development dollars to accomplish ; Formatted: Bullets and Numbering any of the three types of land use? Could there be another referendum for that? Answer: The bonds are only sufficient to acquire the property and pay for the cost of issuing the bonds. There is no additional money set aside for any public improvements, or development. Whether there could ever be an additional referendum for a future public use on the property is unknown at this time and would depend on factors such as what the community desires the land to be used for, if improvements are necessary to the property, the costs of such improvements, and the available City dollars-if any-to pay for such improvements. 12. Has the City Council taken a formal position on the referendum either for or against? Answer: No. 13. If the bond referendum is approved, does the money go into an Open Space fund, or can it only be used for something on the Carriage Hills property? Answer: It can only be used to acquire the Carriage Hills property. OTHER QUESTIONS 1.) Can we include other private development questions here (road location, housing mix, timeline, could they sell to someone else, stuff that was in the approved PD)?* TAGLINE: For more information, see the City Web site at www.cityofeagan.com. '3 AhL -7v-- City of EMello TO: MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: SEPTEMBER 9, 2008 SUBJECT: SUPPLEMENTAL INFORMATION MEMO-SEPTEMBER 11 COUNCIL WORKSHOP AND SEPTEMBER 16 REGULAR CITY COUNCIL MEETING The following information is being sent to the City Council to supplement that materials previously provided in your September 11 City Council workshop meeting packet. Also enclosed is the proposed Comprehensive Guide Plan Update that is included on the Council's September 16 regular City Council meeting. The Update is being provided in advance of the September 16 meeting packet in order to give the Council additional time to review the document. September 11 City Council Workshop IV. Discuss Advanced Community Information and Visioning Statement for November Referendum A. Revised Referendum Fact Sheet Since sending the September 11 meeting packet out on Friday, September 5, the City Attorney has had the opportunity to review the proposed Referendum Fact Sheet and offer his input. Communications Director has made the suggested revision and modified the document accordingly. Enclosed on pages ]I- through is the most up-to-date Referendum Fact Sheet for the Council's review and discussion on the 1 1 cn B. Vision Statement Framework and Working Draft City Staff, along with HKGi consultant Rusty Fifield, have created a v si n statement iscussion framework and draft working document, which are enclosed on pages I L±_ through, for the Council to consider while discussing the Vision Statement for the Carriage Hills Referendum. It is hoped that this outline captures the City Council's thoughts to date, while posing a number of questions yet to be discussed. This framework proposes that the Council consider establishing the parameters for a "planned development" zoning district for the property that would be put into place if the referendum passes. Proposed uses and restrictions could be included in the newly created zoning district. The framework is intended to assist the Council in their discussion on Thursday night. As a reminder, while the fact sheet must be formally approved by September 16, there is a bit more latitude on the timing for the vision statement, as it must be approved by the Council just before the fact sheet is delivered to homes via the Experience Eagan newsletter. In short, this means the Council has approximately 3-4 weeks to formally approve the vision statement. Supplemental Information Memo September 9, 2008 Page 2 September 16, 2008 Regular City Council Meeting New Business A.-2008 Comprehensive Guide Plan Update Enclosed without page number is a copy of the 2008 Comprehensive Guide Plan Update, which is scheduled for Council consideration at the September 16, 2008 regular City Council meeting. The Update is being provided in advance of the September 16 meeting packet in order to give the Council additional time to review the document. If you have any questions about the enclosed materials, please feel free to contact me. /s/Thomas L. Hedges City Administrator Fact Sheet For Newsletter Piece on Carriage Hills Referendum Newsletter headline: Public to Decide Future of Carriage Hills Land Sample opening paragraphs: Should the City of Eagan acquire 120 acres of land formerly known as the Carriage Hills Golf Course? That 's just part of the question voters will be asked to decide in a referendum on the November 4, 2008 ballot. After four years of litigation regarding the future of the property, the ballot question lets voters choose whether the City should acquire the land for a cost of $10.25 million or whether the owner should be allowed to proceed with a mixed residential development on 90 acres of the site, but preserving 30 acres throughout the site as undeveloped space. The question appears on the ballot as direct result of the settlement of a lawsuit between the owner and the City. The settlement set the price at which the owner is willing to sell the land, and also created the opportunity for voters to choose whether the City should bond to buy the land or whether the tract is allowed to develop as housing. How would the land be used if the City acquires the parcel? What are the developers plans if the land is privately developed? What's the impact on voters, either way? These are just some of the questions addressed in the following fact sheet prepared to offer voters information which may be useful to their decision. QUESTIONS & ANSWERS 1. What is the Carriage Hills property and where is it located? Answer: Carriage Hills is the name of a 120 acre tract of land east of Lexington Avenue near Yankee Doodle Road and Westcott Woodlands. It was used as a privately run golf course from 1965 until it closed in 2004 2. What is the exact ballot question? Answer: "Shall the City of Eagan be authorized to issue and sell its general obligation bonds in a principal amount not to exceed $10,250, 000 for the purpose of acquiring approximately 120 acres of land formerly known as the Carriage Hills Golf Course for public facilities, recreation, and open space uses? " 3. What does a "yes" vote on the ballot question mean? Answer: A `yes " vote means you approve issuing up to $10.25 million of bonds by the City to pay for the acquisition of the 120 acres of land. It means taxes on your property would increase for the next 20 years to pay off the cost of the general obligation bonds used to finance the land purchase. It also means the land cannot be used for private residential development. The City would acquire the property and hold the land for future use. When there are identified purposes or community needs, the City must use the land in only three ways-as public facilities, as open space, and for recreational purposes. While the current City Council cannot bind the actions of a future City Council, they have adopted a Visioning Statement intended to inform the public about allowable uses under those three property categories and how they envision a community conversation and decision on future uses should be made. 4. What does a "no" vote mean? Answer: A "no' vote means the current landowner, Wensmann Homes, is allowed to develop up to 480 units of mixed-use housing (including single family homes, townhomes, and apartments) on 90 acres of the site, but must leave public access to a total of 30 acres spread throughout the site as undeveloped but privately owned space. Subject to Met Council approval, the property is zoned Planned Development. The timing of any construction decision is up to Wensmann. While Wensmann is free to sell the property to a third party, any new owner would be bound by the same approvals and restrictions that currently apply to Wensmann in the Planned Development. 5. What happens if I don't vote either "yes" or "no" on the ballot question? Answer: Unlike a state ballot question, a non-vote on this Eagan ballot question has no effect on the outcome, other than to reduce the number of voters on the question. A non-vote is not counted for or against the question. The question is decided by a majority of those who do vote either "yes " or "no. " 6. Why isn't there one specific land use or public purpose for the property identified in the ballot question? Answer: The question comes before the voters as a result of contingent settlement of a four year lawsuit against the City. Following that settlement, two public open houses were held prior to the adoption of the ballot question. Approximately 80 residents offered numerous ideas of how the land could or should be used. See the Web site for a complete list, however, the Council selected the following land uses for the ballot question: public facilities, recreation, and open space uses. 7. What's allowed under those three uses of public facilities, recreation, and open space? Answer: See the [Visioning Statement on] the City Web site. 8. Should the referendum pass, what would happen next? Answer: The City would then purchase the land in January of 2009, per the settlement agreement, for the agreed upon purchase price. The land would then be held for use to meet future public needs or desires. There is no immediate proposal for what to do with the land. A public process to evaluate needs, costs, and benefits, for future public facilities, open space and recreational opportunities is anticipated to occur prior to land use decisions by the City Council. 9. If the bond referendum passes, what will that do to my taxes? Answer: Property taxes would go up. A preliminary estimate, not taking into account changes in interest rates or the timing of the bond sale, indicates that for a home with a market value of $300, 000 the annual increase would be approximately $29. For a home with a market value of $200, 000 the annual increase would be approximately $18 and for a market value of $150, 000 the increase would be nearly $13 a year. 10. Is there a difference to My taxes if the land develops vs. if it doesn't? Answer: Assuming the property was already developed with the full 480 units with the mix and per unit values projected by the developer, the property would generate approximately $432, 000 in Eagan property taxes (calculated at 2009 rates.) If on the other hand, the referendum passes the City will pay approximately $830, 000 per year for 20 years to acquire the property. City-owned land is typically removed from the tax rolls and does not generate property tax income. Whether the property develops privately or is owned by the City there may or may not be additional demand for City services to serve that location. 11. Does the $10.25 million include operational or development dollars to accomplish any of the three types of land use? Could there be another referendum for that? Answer: The bonds are only sufficient to acquire the property and pay for the cost of issuing the bonds. There is no additional money set aside for any public improvements, or development. Whether there could ever be an additional referendum for a future public use on the property is unknown at this time and would depend on factors such as what the community desires the land to be used for, if improvements are necessary to the property, the costs of such improvements, and the available City dollars-if any-to pay for such improvements. 12. Has the City Council taken a formal position on the referendum either for or against? Answer: No. 13. If the bond referendum is approved, does the money go into an Open Space fund, or can it only be used for something on the Carriage Hills property? Answer: It can only be used to acquire the Carriage Hills property. TAGLINE: For more information, see the City Web site at www.citvofeagan.com. Approach to the Vision Statement The City Council has requested the preparation of a "vision statement" that provides additional information to voters about the proposal in the Carriage Hills referendum. In undertaking this task, several factors shaped the working draft that appears below: • The Vision Statement should begin with a disclaimer that informs the reader about the limitations on information in the document, specifically, nothing in the Vision Statement binds a future City Council. • The Vision Statement should be a single document that cannot be separated from the disclaimer. • Given the inability to bind future city councils, the Vision Statement must make careful use of the term "will". The term should only be applied to short-term actions that the City Council is committed to undertake after the referendum. • The Vision Statement will be published on the City of Eagan website. • For this reason, there is additional time available to craft the content of the Vision Statement. It does not need to be posted until the printed fact sheet is mailed out in the City newsletter or it is placed on the City website (if done prior to mailing). • The working draft of the Vision Statement leads to a promise that the Council will create a planned development zoning district for the property if the referendum passes. The land will need to be placed into some type of zoning district or else will be a combination of "Parks" and "Public Facilities" zoning. The proposed ordinance for this PD could be created and published on the web along with the Vision Statement. Current uses allowed under "P-Parks District" and "PF - Public Facilities" zoning district are included at the end of this document. • The Council may also wish to give direction to the level of maintenance the area will receive if the referendum passes until development takes place in the future. The City Code requires turf grass to be cut if weeds or grass get higher than 8". Currently, there are a few examples of City parkland managed as non-mowed natural areas including: o Blackhawk Park; western portion of the park/hillside area o Wandering Walk/Bridle Ridge; a large segment extending from Elrene to Wescott o Highline trail; Entire length, especially east and west of Thomas Lake Road o Central Park; hillside behind the pavilion, along Pilot Knob o Patrick Eagan; former Anderson property off of Lexington o Thresher; Entrance and surrounding slopes, all of the perimeter o Holz Farm; mid section between the farm and rental house • The Council may also wish to comment on future funding of public development/improvements to this land so as to let the public know that there may be a future referendum to fund this development. ' - Vision Statement Carriage Hills Referendum Working Draft As part of the November 4 general election, Eagan voters will have the opportunity to authorize the issuance of bonds that will be used to acquire the site of the former Carriage Hills Golf Course. In October, all Eagan residents will receive a "fact sheet" in their Experience Eagan newsletter that answers basic questions about the referendum. The City Council wants residents to have more information than provided in the fact sheet. This vision statement is subject to some important limitations: • The City Council cannot and does not advocate a course of action for the referendum. • Nothing contained in this Vision Statement binds a future City Council to take or not take specific actions or to use or not use the property for a specific purpose. The authorizing language for the referendum requires that the property be used for "public facilities, recreation and open space uses". The City Council chose this language for two basic reasons: 1. The language creates flexibility to meet Eagan's future needs for a range of possible public uses. 2. The language restricts the property from being used for private residential housing development or other forms of private development. It is important to understand that this referendum takes place in a different manner from any prior referendum undertaken by the City of Eagan. All other referenda have been proposed to meet a specific need, such as the construction of the Community Center. The issues had been studied and the uses of the bond proceeds could be explained in detail. The Carriage Hills referendum does not occur in this manner. It is the result of a settlement of a lawsuit that gives the City a one-time opportunity to buy the property. Timing does not allow the City to study use options in depth and to offer a specific plan for the property to voters. One action that the current City Council can commit to is the establishment of zoning designations for the property. While the zoning could be changed by a future City Council, the change could not occur without a public process that includes public hearings before both the Planning Commission and the City Council. If the referendum passes, the City Council would immediately initiate the process to place the property into a special "planned development" zoning district. An amendment to the Comprehensive Guide Plan, and subsequent approval by the Metropolitan Council, would be required. The potential uses allowed in this zoning district would be: A. Parks - both active and passive B. Playgrounds C. Indoor and outdoor recreation facilities D. Camping grounds (S E. Governmental buildings F. Public schools G. Hospitals H. Public utility structures 1. Alternative energy structures? J. Off-street parking, trails, shelters and other improvements that support open space, recreation and public facility uses. The proposed planned development district could contain additional stipulations on use: • Road connections to the property would be limited to Wescott Woodlands and Duckwood Drive • ? A copy of the existing planned development district can be viewed by following this link. Click here Development of public facility, recreation and open space uses on the Carriage Hills property will not occur overnight. The community meetings held in July show that there are a variety of potential uses for this property. Careful planning is needed to explore the alternatives, understand their implications and create plan for use that serves the community. Any planning process should actively engage the community in these discussions. I\X'lw:l <in !an,~~,,ri, In the interim, the City will hold and maintain the property in an undeveloped condition. Anticipated maintenance of the property include maintaining the existing site in a natural condition. As the intended use becomes more refined through the planning process, the scope/scale of the natural areas and thus maintenance would be altered accordingly. Until that time, the entire site will be "preserved" as open space in an un-mowed condition with maintenance activities limited to managing for invasive species and public hazards. The City of Eagan website contains other information about the opportunity to acquire the former Carriage Hills Golf Course and the process leading the referendum: • Rcs(Ilts of conlmunitV mcetin;s._gn potential pu blic_usc f..propc..rt • Video tiomSc ptcinkc Z....City C„'ouncilmcct ng setting thtbtllot.miest on jLp Zoning Descriptions Subd. 19. P Park District. A. Purpose. The Park District is intended for public and private park uses and related facilities. B. Permitted uses. 1. Camping grounds. 2. Freestanding satellite dishes, subject to the regulations thereof elsewhere in this chapter. 3. Golf courses. 4. Parks. 5. Playgrounds. 6. Public structures. 7. Swimming pools. 8. Tennis courts. C. Conditional uses. 1. Freestanding towers. 2. On-sale beer associated with golf course clubhouses. 3. Temporary on-sale beer. 4. Gun clubs. 5. Nursery, day. 6. Nursery, landscape. 7. Church. 8. School: public, private, vocational or technical. 9. Single-family dwelling. 10. Private recreational facilities and fields. 11. Conditional uses number 4 through number 10 shall meet the following standards: a. A minimum lot size of four acres; b. Streets are to be public and meet all city design standards; c. Water and sanitary sewer facilities are required to be connected to city water and city sanitary sewer; d. Ponds, water bodies and wetlands are to be preserved on site and mitigated as necessary on site; e. Impervious surface on any lot may not exceed five percent of the area of the lot; f. Parking must be proximate to the use; g. Single-family dwellings shall not be within the 60 DNL area from the Minneapolis/St. Paul International airport. h. Structures are to be clustered to minimize impervious surfaces. i. Ponds, water bodies, wetlands and slopes greater than four to one (4:1) shall be preserved and not disturbed. D. Permitted accessory uses. 1. Temporary outdoor events, subject to regulations thereof elsewhere in this chapter. f7 Subd. 20. PF Public Facilities District. A. Purpose. The purpose of this district is for city, state, and federal government buildings, public and private schools and hospitals. B. Permitted uses. 1. Antennae on a city water reservoir tank or tower and public utility tower antennae, subject to regulations thereof elsewhere in this chapter. 2. Building mounted antennae, subject to regulations thereof elsewhere in this chapter. 3. Churches. 4. Freestanding satellite dishes, subject to the regulations thereof elsewhere in this chapter. 5. Governmental buildings. 6. Hospitals. 7. Public utility structures and equipment. 8. Satellite dishes, subject to regulations thereof elsewhere in this chapter. 9. Schools. B. [ 1 ] . Conditional uses. 1. Daycare facilities associated with churches. 2. Electrical substations and other public utility facilities. 3. Freestanding tower and wind energy conversion systems, subject to regulations thereof elsewhere in this chapter. 4. On-sale beer at golf courses with clubhouses, subject to regulations in chapter 5. 5. Seasonal outdoor sales, subject to regulations thereof elsewhere in this chapter. C. Permitted accessory uses. 1. On-sale beer through temporary licenses with a maximum of four days only in conformity with chapter 5. 2. Temporary outdoor event subject to regulations thereof elsewhere in this chapter. 3. Private garages, off-street parking and loading spaces, as regulated by this chapter. 4. Community service operations when associated with churches, subject to site plan review as required elsewhere in this chapter. D. Developments within a public facilities district shall meet the following requirements: 1. Prior to construction or alteration of any such facility, a building permit shall be required. 2. Every structure within a public facilities district shall have a minimum setback from its lot or land area boundaries of two feet of setback for each one foot in height of such structure, excluding steeples, ornaments or antennas. This provision shall not allow a minimum structure setback of less than 30 feet nor require a minimum structure setback of more than 50 feet. (Example: 15-foot tall or less structure = minimum 30-foot setback; 20-foot tall structure = minimum 40-foot setback; and 25-foot or tallerstructure = minimum 50-foot setback.) 1~