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11/07/2022 - City Council Regular SPECIAL CITY COUNCIL MEETING MONDAY NOVEMBER 7, 2022 5:30 P.M. EAGAN ROOM – EAGAN MUNICIPAL CENTER AGENDA I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD III. JOINT MEETING WITH ADVISORY PLANNING COMMISSION (APC) IV. COMPREHENSIVE GUIDE CONCEPT REVIEW, EAGAN WOODS V. 2023 ENTERPRISE AND SPECIAL REVENUE OPERATING BUDGETS VI. ECVB ANNUAL UPDATE AND 2023 BUDGET PRESENTATION VII. OTHER BUSINESS VIII. ADJOURNMENT Agenda Memo November 7, 2022 Special City Council Meeting III. JOINT MEETING WITH ADVISORY PLANNING COMMISSION Action to be Considered: To discuss various topics with the Advisory Planning Commission and provide direction for the 2023 APC Work Plan. Facts:  At the annual joint meeting, the City Council and Advisory Planning Commission usually discusses possible work plan topics for the upcoming year. Work plan topics can include Council-directed initiatives, Commissioner suggestions based on APC case experience, and staff recommendations based on legislation, court decisions, and industry trends.  The Advisory Planning Commission currently comprises of eight Planning Commissioners. Of those, three have served slightly more than one year, three have served less than one year, two have served for approximately four years. The six newest Commissioners have limited municipal board experience.  Due to the relative newness of the majority of APC Commissioners, a primary focus of APC work sessions in 2023 will be technical training on planning and land use matters.  Guest speakers from Engineering, Parks, Water Resources, Utilities, and Public Safety will be invited to share information including City and State development requirements, what staff consider during development review, and industry best practices. The first guest speaker was Aaron Nelson, Assistant City Engineer, and Commissioners highly valued the technical information and insight that Mr. Nelson provided.  Land use education from Fusion Learning Partners (formerly known as Government Training Services) has also been offered to Commissioners and some have been able to participate in the online training.  In 2022 following a surge of electric vehicle charging station (EVCS) proposals, particularly Level 3 facilities, Council directed staff to research EVCS best practices and draft an ordinance amendment. The EVCS work is nearing completion, and staff anticipates that an ordinance amendment will be ready for City Council consideration in early 2023.  Also in 2022, following a proposal by Blue Ox Media, the Council directed staff to research the history and background of the City’s off-site dynamic signage (digital billboard) ordinance. Staff researched current dynamic signs, history of City policy, and signage ordinances in comparable cities. The APC provided input prior to presentation to the City Council on June 14, 2022.  In response to uncertainties in the commercial office market and vacancy/underutilization of buildings surrounding Central Park, the City Council authorized a Request for Proposals for a study to examine potential reuse and redevelopment of those sites. Work is expected to begin in December 2022, and the APC will be involved in the planning process through much of 2023.  Since receiving City Council direction in 2020, staff has been reviewing interim use permits (IUP’s) and conditional use permits (CUP’s) dating from 2010 to 2020. Of the 145 IUP and CUP applications over that 10-year span, staff has verified or reestablished compliance for the majority of properties. Staff continues to work with six noncompliant properties, but some may require new CUP applications for consideration. Code Enforcement and Planning staff will next review Planned Developments, primarily commercial and industrial sites, for substantial compliance.  Additional work tasks for 2023 include: o Potential evaluation of reuse and redevelopment proposals at Thomson Reuters and other large office campuses. o Installation and implementation of new plan review, permitting, and licensing software. o Adoption and implementation of rental licensing ordinance.  The table below shows the status of 2022 work tasks and potential 2023 tasks. The 2022 work plan originally included attached/detached garbage enclosures (to consider allowing detached enclosures) and skilled nursing facilities (to consider allowing in additional zoning districts). Digital billboards and EV Charging Stations were not on the 2022 work plan, but were prioritized pushing the review of garbage enclosures and skilled nursing facilities to the back-burner. Work Plan Topic Status Completion Date On-Sale Liquor – CUP Completed May 2022 Digital Billboards Completed June 2022 EV Charging Stations Initial Draft Ord. nearing completion. APC and City Council review needed Anticipated APC in Nov. or Dec ‘22/ City Council in January ‘23 APC Training On-Going Dec. 2023 NW Central Commons Small Area Plan Anticipated start date Dec. 2022 Fall 2023 Office Campus Reuse/Redevelopment On-Going TBD New plan review and permitting licensing software Anticipated start date Spring 2023 January 2024 Rental licensing implementation Anticipated start date July 2023 On-Going Attached/Detached Garbage Enclosures Initial cursory research completed Late Spring/Early Summer ‘23 Skilled Nursing Facilities Pre-research Summer ‘23 CUP/IUP Review On-Going On-Going  Staff is recommending a minor ordinance amendment regarding performance guarantees in Chapter 11. In Section 11.70 of City Code, performance guarantees for project landscaping ($7,500) and tree preservation plan ($25.00 per diameter inch for trees and $1.20 per square foot for significant woodlands) are codified. An ordinance amendment would remove specific dollar amounts from the Code and include a reference to the City’s fee schedule which is updated annually. Policy Questions:  Will City Council direct staff to draft an ordinance amending City Code removing reference to specific dollar amounts as noted in Section 11.70 and replace with reference to the City Fee Schedule?  The list of identified tasks is extensive and likely exceeds staff and APC capacity. Are any items listed above of lower priority for City Council? City Council/APC Joint Workshop November 2022 Workshop Discussion ▪APC Member Introductions ▪2022 Project Update ▪2023 Potential Projects ▪Minor Ordinance Amendment Request ▪Policy Questions ▪The Advisory Planning Commission currently comprises of eight Planning Commissioners. o 2 have served for approximately four years o 3 have served slightly more than one year, o 3 have served approximately one year Advisory Planning Commissioners ▪Christos Jensen -Chair ▪Carol Whisnant –Vice Chair ▪Chris Whitfield -Secretary ▪Dave Cherner ▪Steve Schwanke ▪Simon Barnicle ▪Andrew Wegener ▪Brandon Block (alt) 2022 Project Updates ▪On-Sale Liquor –CUP Ordinance: Completed May ▪Digital Billboards:Completed June ▪EV Charging Stations:Initial vetting completed,APC in Nov/Dec, Council Jan. ’23 ▪Skilled Nursing Facilities:Pre-research ▪Attached/Detached Garbage Enclosures: Initial research completed ▪CUP/IUP Reviews: On-going 2023 Potential Projects ▪APC Training ▪Guest Speaker Series ▪Fusion Learning Partners Training ▪Northwest Central Commons Small Area Plan ▪Office Campus Reuse/Redevelopment ▪Thomson Reuters ▪Rental Licensing Implementation ▪New Plan Review &Permitting Software ▪Planned Development Reviews added to CUP/IUP Reviews ▪Minor ordinance amendment regarding performance guarantees in Chapter 11. ▪Specific amounts regarding performance guarantees are codified rather than referencing fee schedule. o Project landscaping -$7,500 o Tree preservation plan -$25.00 per diameter inch for trees and $1.20 per square foot for significant woodlands ▪Ordinance amendment would remove specific dollar amounts from the Code and reference the City’s fee schedule which is updated annually. Minor Ordinance Amendment ➢Will City Council direct staff to draft an ordinance amending City Code removing reference to specific dollar amounts as noted in Section 11.70 and replace with reference to the City Fee Schedule? ➢The list of identified tasks is extensive and likely exceeds staff and APC capacity. Are any items listed above of lower priority for City Council? Policy Questions City Council/APC Joint Workshop Agenda Information Memo November 7, 2022 Special City Council Meeting IV. Concept Plan Review, Comprehensive Guide Plan Amendment – Kamp Real Estate & Development Direction for Considered: No action is required. Request is for discussion and feedback regarding a concept plan for Mixed Use land use designation. Facts:  In December 2021 City Council approved an amendment to City Code providing procedures for an informal review of a concept plan in conjunction with an anticipated Comprehensive Guide Plan Amendment.  The subject property is located at 2670 Eagan Woods Drive. The 0.67-acre property is currently vacant and has a Retail Commercial land use designation, and Planned Development zoning designation.  Kamp is seeking Council input regarding a proposal for a mixed-use development on the site consisting of a four-story building containing 24 residential units each with a dedicated work-from-home space, a ground level commercial retail that will likely be a coffee shop with drive-through service, and a shared conference and meeting room.  The proposal would require a Comprehensive Guide Plan Amendment from RC, Retail Commercial to MU, Mixed Use. Land use amendments are also reviewed by the Metropolitan Council.  Multiple City Code deviations appear likely if the project moves forward including for the mixed use, setbacks, density, building height, and parking. Attachments: (3) IV-1 Location Map IV-2 Planning Report IV-3 Concept Plan and Narrative C.S.A.H. NO. 31 (PILOT KNOB ROAD)EAGAN INDUSTRIAL ROAD BU RNSID E AVENUEPOPPLER LANEE G A N A V E N U E BRIDGEVIEW AVE STEPHANIE CR CORP. CENT. DR. HIGHVIEW AVE CORPORATE CENTER DRIVE VILASLANES KYLIN E CT EAG A N D A LEPLACEINTERSTATE HWY. NO. 35EEAGANDALEBLVDOSTER DR R A I N I E R LANEHIGHVIEW TERRACESIBLEY HILLS DRVINCE TR CENTERCOURTBEAMLANEEAGANDALE BLVDBRIDGEVIEW TERRACEPINERIDGEDRIVESKYLINETR C.S.A.H. NO.26 (LONE OAK ROAD)WO: 52497EAGA N D A LE CT AVALON AVENUE SKYLINE DRIVEHIGHRIDGEWOODLARK LANEINTERSTATE HWY. NO. 494 TRAPP ROAD EGANAVENUEM C C A R T H Y R O A D BURNSIDEAVENUETERRACESTATETRUNKHWY.NO.13SOUTHRIDGE AVE FAI R L A WN P L A C E INLANDROADSHIELDSDR.C ORPORATE CENTER CU R V E RUSTICHILLSDRWESTSERVICE ROAD SKYLINECHERRYWOOD CTSKYLIN E R OAD PATH HIGHVIEW AVE SKYLINE DR Pilot Knob Park CountryHome Park Highview Park Fort SnellingState Park Location Map 0 1,000500 Feet ´ §¨¦35E §¨¦494 Cliff Rd Diffley Rd Yanke e Do odle Rd Lone Oak Rd Map Area Extent Project Name: 2670 Eagan Woods DriveRequest: Concept Review - Comp Guide Amendment Subject Site PLANNING REPORT CITY OF EAGAN REPORT DATE: October 31, 2022 CASE: N/A APPLICANT: Kamp Real Estate & Development WORK SESSION DATE: November 7, 2022 PROPERTY OWNER: Commerce Bank APPLICATION DATE: October 24, 2022 REQUEST: Informal Review of Concept Plan – PREPARED BY: Pam Dudziak Comprehensive Guide Plan Amendment LOCATION: 2670 Eagan Woods Drive COMPREHENSIVE PLAN: RC, Retail Commercial ZONING: PD, Planned Development SUMMARY OF REQUEST Kamp Real Estate and Development (Kamp) is requesting informal discussion with City Council regarding a proposed concept plan comprehensive guide plan amendment, regarding property at 2670 Eagan Woods Drive. Kamp is seeking Council input regarding a proposal to change the land use designation from RC, Retail Commercial, to MU, Mixed Use, to accommodate a proposed development for a four-story residential building that includes a ground level commercial retail component and a shared conference and meeting room, as well as dedicated work-from-home office space within each of the residential units. The Planning Report provides a cursory review of the property and this request. A complete review will be provided upon submittal of a formal development application. AUTHORITY FOR REVIEW City Code Chapter 11, Section 11.50, Subdivision 5(I) states: Comprehensive Guide Plan Amendment concept plan. Prior to filing a land use application that would require an amendment to the City’s Comprehensive Guide Plan, any person may submit to the City a concept plan for a proposed comprehensive guide plan amendment, along with a written request that the concept plan be presented to the City Council for informal presentation and discussion of the feasibility of the proposed comprehensive guide plan amendment. The request shall be made by addressing a letter to the City Council; the request Planning Report - 2670 Eagan Woods Dr. November 7, 2022 Page 2 and concept plan will be presented at a subsequent City Council meeting as agenda availability permits. A concept plan review hereunder will be limited to one plan review per property in a twelve-month period. Submission of the concept plan shall not constitute formal filing of a plan or application with the City. The City Council will not take formal action or provide an opinion as to its action upon a formal application for the amendment; the sole purpose of the City Council ’s review of the submitted concept plan is to review and obtain information about the potential/conceptual comprehensive guide plan amendment. BACKGROUND/HISTORY The subject property is zoned PD, Planned Development, and guided RC, Retail Commercial. Prior to 2000, the property was zoned Agricultural and contained a single-family home. With adoption of the 2000 Comprehensive Guide Plan, the O/S, Office/Service, land use designation was applied to the property and it was subsequently rezoned to T, Transitional, in 2000. The house was removed in the early 2000’s and the property has been vacant since then. The property was platted in 2007 in conjunction with development of the Holiday gas station and convenience store to the north. Partial right-of-way for a future southward extension of Eagan Woods Drive along the west edge of the property was dedicated with the plat. The RC land use designation was adopted at the same time. The 2007 Preliminary PD for the property was designed to be compatible with the Holiday and the intended development plan was for a multiple tenant commercial building with a drive- through coffee shop. The site plan utilized a shared driveway between the two parcels, for which cross-easements have been recorded. EXISTING CONDITIONS Existing Conditions – This 0.67-acre site is located south of Corporate Center Drive and west of Pilot Knob Road. A Holiday gas station, which was constructed in 2008, is located immediately to the north. A medical building was built in 2000 immediately to the south. This site was graded during the development of the gas station, and water and sanitary sewer, watermain, and storm sewer were installed to accommodate a specific anticipated development layout for this property (which is significantly different from the proposed concept plan). A private driveway was also installed that straddles the north property line to serve the gas station and this site. A public trail is located along the west boulevard of Pilot Knob Road. Approximately half of the site is covered with voluntary growth vegetation. Based on the concept plan, all of the vegetation would need to be removed, and the majority of Planning Report - 2670 Eagan Woods Dr. November 7, 2022 Page 3 the existing private infrastructure would need to be relocated to accommodate the construction of the building, parking lot, driveway, and storm water system. The site generally slopes to the north and west, with elevations ranging from 898 to 890. SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: EVALUATION OF REQUEST Description of Proposal – The applicant is proposing a land use amendment to Mixed Use (MU) to allow development of a primarily residential multi-family building with a retail coffee shop with drive-through service on the ground level. The concept plan is designed for residents who primarily work from home, and also includes shared meeting space and conference room on the first floor, as well as a dedicated office work space within each dwelling unit. Concept Site Plan – The conceptual site plan shows a four-story building with 24 residential units and ground floor retail space intended for use as a coffee shop with drive-through service, as well as a shared conference room and meeting space. The Site Plan shows surface parking of 17 stalls and additional subgrade parking of 28 stalls. The Site Plan utilizes the shared northerly driveway with the adjacent Holiday and shows a new trail connection between the site and Pilot Knob Road. Existing and Proposed Land Uses - The current RC, Retail Commercial, land use designation is intended for a variety of retail related uses such as shopping centers, drugstores, convenience center/motor fuel stations, restaurants, and other businesses offering goods and services. Retail Commercial land uses may differ in scale and tend to generate substantial traffic, relying on visibility and convenient access. The proposed MU, Mixed Use, designation is intended for areas of mixed residential or mixed residential/commercial uses as defined in area-specific Special Area Plans. Mixed Use is intended to be relatively self-contained and compatible with existing adjacent uses. The purpose of MU development is to provide an attractive cohesive design that caters to pedestrian activity and movement. Access to and visibility from collector and arterial roads, and pedestrian scale and convenient access to transit is desired. Mixed Use development also can Existing Use Zoning Land Use Designation North Retail Commercial (Holiday fuel/store/car wash) PD, Planned Development RC, Retail Commercial East Office PD, Planned Development MO, Major Office South Clinic NB, Neighborhood Business O/S, Office Service West Office PD, Planned Development MO, Major Office Planning Report - 2670 Eagan Woods Dr. November 7, 2022 Page 4 vary in scale and is generally anticipated to utilize flat open sites or sites that have previously been developed. The MU designation is tied to the Special Areas where small area plans can accommodate infill and redevelopment, anticipate greater densities and ensure compatibility of both vertical and horizontal mixed use development. The subject site is not within an existing Special Area, the closest is the Central Commons Special Area located approximately one mile south. In addition to the question of a Retail Commercial versus Mixed Use designation, a broader amendment of the Comprehensive Plan to allow Mixed Use outside of the Special Areas, or to create a new Special Area in this part of Eagan, would be necessary to allow this proposal to progress. Compatibility with Surrounding Area – With the exception of Holiday to the north, the site is surrounded by office uses. To the immediate south is a medical clinic, a vacant lot and an office building containing medical and similar services uses. To the east across Pilot Knob Road are office buildings. The Holiday operates 24 hours for the fuel, convenience store and car wash. The introduction of a residential use adjacent to an existing 24-hour commercial business is inconsistent with the zoning standard that requires 24-hour commercial business operations to maintain a 200-foot setback from residential uses. The next nearest residential uses are one- quarter mile to the south. Additional retail and services are located approximately two miles south at Central Park Commons and Eagan Promenade. MVTA provides bus service in the area. With the recent slowdown in market demand for office space, several of the office buildings in the surrounding area, and elsewhere throughout the City and region, have significant vacancies. While the long-term impact is unknown, current market conditions pose both opportunities and challenges for reuse and redevelopment. In the narrative, the applicant cites these market changes and the potential conversion of other buildings in the area “to residential or hotel type of uses” as support for their mixed-use development. Airport Noise Considerations – The City of Eagan considered airport noise as a factor in its Comprehensive Land Use Guide Plan and has adopted an Aircraft Noise Zone Overlay District in the land use regulations of the City Code. The Overlay District is in accordance with the Metropolitan Council’s Transportation Policy Plan and Land Use Compatibility Guidelines for Aircraft Noise. New construction as defined within these regulations is subject to noise attenuation requirements to limit negative impacts of aircraft noise within established noise zones. The Metropolitan Council reviews all land use amendments, and if this proposal moves forward, it may be subject to higher review standards as a conditional use under the Metropolitan Council’s guidelines. The subject site is in a highly impacted noise corridor beneath concentrated aircraft flight patterns. The current noise policy contours place this site within Noise Zone 4, within which Planning Report - 2670 Eagan Woods Dr. November 7, 2022 Page 5 office and commercial uses are considered compatible, and the proposed residential use is considered provisional, meaning the use must meet structural performance standards to achieve a 19 dBA reduction in interior noise levels. The Metropolitan Airports Commission’s 2035 forecasted contours were not available during preparation of the City’s most recent Comprehensive Plan in 2019-2020, making it difficult to predict land use impacts of future aircraft operations and the corresponding impact on long term land use planning decisions. The City’s Comprehensive Guide Plan adopted in 2020 acknowledges that noise contours change annually to reflect actual operations and a significant change in projected noise contours could necessitate further amendments to the City’s Comprehensive Guide Plan. Recently updated forecasted noise contours suggest the property is within Noise Zone 3. Within Zone 3 the proposed commercial use is considered provisional and the residential use is considered conditional. Zone 3 is a higher noise level exposure for a residential use than is present elsewhere in the city to date. While a provisional use must meet structural requirements for interior sound reduction, a conditional use is not permitted unless it meets the Metropolitan Council’s Land Use Compatibility Guidelines for Aircraft Noise and also meets structural performance standards to achieve a 24 dBA reduction in interior noise levels. Code Requirements – Multiple deviations to typical City Code standards appear to be necessary for the proposed concept plan including for mixed use, setbacks including the 200-foot setback from a 24-hour commercial business, residential density, building height, and potentially parking and on-site storage and recreational space. PD, Planned Development, zoning would likely be utilized to accommodate the mixed use and City Code deviations. Tree Preservation – The City’s Tree Preservation Ordinance (City Code Section 11.70) sets the allowable removal for this type of single-phase, commercial development at 30 percent. A detailed tree inventory, tree preservation, and replacement plan (if necessary) will be required at the time of development. Wetlands – There are no wetlands on site, therefore, City Code Section 11.67, wetland protection and management regulations, does not apply. Water Quality – Any development will need to comply with the City’s Post Construction Stormwater Management Requirements (City Code section4.34) for stormwater management and surface water quality, including Runoff Rate Control and 1.1-inch Volume Control. These regulations include: design standards for volume control and reduction; total phosphorus control; total suspended solids control; oil and grease control; and runoff rate control – performance standards. They also provide for: minimization of impervious surface area and maximization of infiltration and retention; acceptable complementary stormwater treatments; pond requirements; regional ponding; and maintenance of private stormwater facilities. Planning Report - 2670 Eagan Woods Dr. November 7, 2022 Page 6 Storm Water Drainage – The entire site lies within Drainage District H (as designated in the City Storm Water Management Plan – 2007). The applicant would construct a private storm sewer and water quality treatment system on site, and it would need to connect to the existing storm sewer along to the north, runs under Corporate Center Drive, and ultimately to the northwest toward the Minnesota River. Private storm sewer was previously installed to accommodate development of this site, but it will need to be relocated for this development plan. Utilities – Water and sewer services were previously stubbed into the site. Based on the proposed concept plan, the services will likely need to be modified. This development will also need to meet hydrant spacing and locations in accordance with City Fire Department and Public Works standards. Streets/ Access / Pedestrian Circulation – The site is located south of Corporate Center Drive, and immediately west of Pilot Knob Road. Based on Dakota County’s access spacing guidelines, none of the properties in this area were intended to be accessed directly from Pilot Knob Road. During the initial development of this area, a “backage” road was planned along the west property lines to provide public street access from the west. These properties dedicated half right-of-way to facility the future extension, but the other half of the right-of-way will need to be acquired from the adjacent property at 2655 Eagan Woods Drive. When the Holiday gas station was developed, the northernmost portion of Eagan Woods Drive was constructed. Because inadequate right-of-way was available to extend the road further south, a temporary driveway access was installed along the south side of the gas station site. Any additional development in this area will facilitate the need to extend the public street. A developer can either privately acquire the additional right-of- way and extend the street, or they can petition for public improvements, and if approved, the City will initiate the extension and assess all benefitted property owners. A public sidewalk is located along Corporate Center Drive and a public trail along Pilot Knob Road. Any development of this property should provide pedestrian connections to the public system. Easements/ Permits/ Right-of-Way – Public drainage & utility easement were previously dedicated around the perimeter of the property. Adequate right-of-way exists for Pilot Knob Road. Half right-of-way was previously dedicated for the extension of Eagan Woods Drive, but additional right-of-way will need to be acquired from Prime Therapeutics to accommodate any extension of the public street. Financial Obligation - Currently there are no pending assessments on this parcel, and trunk and lateral utility charges were previously paid. This property would financially participate with the extension of Eagan Woods Drive. Planning Report - 2670 Eagan Woods Dr. November 7, 2022 Page 7 Parks and Recreation – The subject parcel is located within Park Service Area 4. The parcel does reside within the service area of one existing City park, Highview Park located at 1435 Skyline Drive. Fort Snelling State Park is also located approximately three-quarters mile to the west. In combination, the City parks contain a variety of active and passive park amenities and would be sufficient for this development. An existing trail is located on the west side of Pilot Knob Road which connects with the City- wide trail system. SUMMARY/CONCLUSION The applicant is seeking City Council discussion regarding the proposed concept plan and potential Comprehensive Guide Plan Amendment request to change the land use designation of the subject property from Retail Commercial to Mixed Use. The proposed concept plan illustrates a four-story mixed-use building with a ground level commercial retail component and a shared conference and meeting room, as well as dedicated work-from-home office space within each of the residential units, upon approximately 0.67 acres. ACTION TO BE CONSIDERED No formal action shall be taken. The purpose of this process is to provide an opportunity for an informal conversation between a proposer and City Council. Council may ask questions and voice personal concerns regarding the concept as presented but should abstain from voicing support or nonsupport of the request. C.S.A.H. NO. 31 (PILOT KNOB ROAD)EAGAN INDUSTRIAL ROAD BU RNSID E AVENUEPOPPLER LANEE G A N A V E N U E BRIDGEVIEW AVE STEPHANIE CR CORP. CENT. DR. HIGHVIEW AVE CORPORATE CENTER DRIVE VILASLANES KYLIN E CT EAG A N D A LEPLACEINTERSTATE HWY. NO. 35EEAGANDALEBLVDOSTER DR R A I N I E R LANEHIGHVIEW TERRACESIBLEY HILLS DRVINCE TR CENTERCOURTBEAMLANEEAGANDALE BLVDBRIDGEVIEW TERRACEPINERIDGEDRIVESKYLINETR C.S.A.H. NO.26 (LONE OAK ROAD)WO: 52497EAGA N D A LE CT AVALON AVENUE SKYLINE DRIVEHIGHRIDGEWOODLARK LANEINTERSTATE HWY. NO. 494 TRAPP ROAD EGANAVENUEM C C A R T H Y R O A D BURNSIDEAVENUETERRACESTATETRUNKHWY.NO.13SOUTHRIDGE AVE FAI R L A WN P L A C E INLANDROADSHIELDSDR.C ORPORATE CENTER CU R V E RUSTICHILLSDRWESTSERVICE ROAD SKYLINECHERRYWOOD CTSKYLIN E R OAD PATH HIGHVIEW AVE SKYLINE DR Pilot Knob Park CountryHome Park Highview Park Fort SnellingState Park Location Map 0 1,000500 Feet ´ §¨¦35E §¨¦494 Cliff Rd Diffley Rd Yanke e Do odle Rd Lone Oak Rd Map Area Extent Project Name: 2670 Eagan Woods DriveRequest: Concept Review - Comp Guide Amendment Subject Site Interstate 494 MN HWY 13CO. RD. 31 Pilot Knob RoadInterstate 494 Vilas LaneBeam LaneBurnside AvenueTrapp Ro ad Corporate Center Drive Corporate Center Curve Bridgeview Avenue Eagan Woods DriveAvalon Avenue Highview Av e Bridgeview TerraceSouthridge Ave nue Highridge TerraceHighview TerraceTrapp RoadAvalon Avenue Highview Ave 0 500250 Feet ´ This map is for reference use only. This is not a survey and is not indtended to be used as one. Aerial photo-Spring 2021 Project Name: 2670 Eagan Woods DrRequest: Concept Review - Comp Guide Amendment CO. RD. 31 Pilot Knob RoadCorporate Center Drive Eagan Woods DriveCorporate Center Drive 0 200100 Feet ´ This map is for reference use only. This is not a survey and is not indtended to be used as one. Aerial photo-Spring 2021 Project Name: 2670 Eagan Woods DrRequest: Concept Review - Comp Guide Amendment Figure 1: Approved 2007 Plat2670 Eagan Woods Drive Concept Plan Review 2670 EAGAN WOODS DRIVE |Site Option E EAGAN, MN | OCTOBER 5, 2022 | KAMP REAL ESTATE AND DEVELOPMENT, LLC 0 40’20’ 1-Bedroom Unit 2-Bedroom Unit Utility 2 BR 2 BR 2 BR Retail 900 sf Patio Conf. Room Utility Easement Utility Easement MailBikes Trash T Lobby Surface Parking (17 Spaces)Elev Stair Stair Ramp Down Trash1 BR 1 BR 1 BR1 BR Elev Stair Stair Pilot Knob RdEagan Woods Dr2BR Flex Space 1BR 1BR Drive-Through Queue (6 cars) Stair Elev StairMech./ Elec. Mech./ Elec./ Maint. Parking (28 Spaces) Building Above Circulation Retail Common Offi ce PROGRAM SUMMARY Building Height 4 stories (42’) + Below-Grade Parking Building Area 49,804 sf (includes 12,900 sf subgrade parking) 1 Bedroom 14 units 2 Bedroom 10 units UNIT COUNT 24 units Parking 45 total spaces includes 2 accessible spaces 1.9 spaces per unit FAR 1.26 Density 32 units / acres Site Area 28,957 sf (0.66 acres) Site Plan 2nd - 4th Floor Plan Below-Grade Parking Level65’-0”Trail Connection DRAFT: Use intended only for recipient2670 EAGAN WOODS DRIVE |Site Option E EAGAN, MN | OCTOBER 5, 2022 | KAMP REAL ESTATE AND DEVELOPMENT, LLC 0 40’20’ 1-Bedroom Unit 2-Bedroom Unit Utility 2 BR 2 BR 2 BR Retail 900 sf Patio Conf. Room Utility Easement Utility Easement MailBikes Trash T Lobby Surface Parking (17 Spaces)Elev Stair Stair Ramp Down Trash1 BR 1 BR 1 BR1 BR Elev Stair Stair Pilot Knob RdEagan Woods Dr2BR Flex Space 1BR 1BR Drive-Through Queue (6 cars) Stair Elev StairMech./ Elec. Mech./ Elec./ Maint. Parking (28 Spaces) Building Above Circulation Retail Common Offi ce PROGRAM SUMMARY Building Height 4 stories (42’) + Below-Grade Parking Building Area 49,804 sf (includes 12,900 sf subgrade parking) 1 Bedroom 14 units 2 Bedroom 10 units UNIT COUNT 24 units Parking 45 total spaces includes 2 accessible spaces 1.9 spaces per unit FAR 1.26 Density 32 units / acres Site Area 28,957 sf (0.66 acres) Site Plan 2nd - 4th Floor Plan Below-Grade Parking Level65’-0”Trail Connection rs) 10.24.2022 65’-0”Figure 2: Concept Plan 2670 Eagan Woods Drive Concept Plan Review WFH 1-Bedroom Unit WFH 2-Bedroom Unit Office/ Service/ 1BR Regional TrailTrail Connection 2670 EAGAN WOODS DRIVE |Site Option EEAGAN, MN | OCTOBER 5, 2022 | KAMP REAL ESTATE AND DEVELOPMENT, LLC040’20’ 1-Bedroom Unit 2-Bedroom Unit Utility2 BR2 BR2 BRRetail900 sfPatioConf. RoomUtility EasementUtility EasementMailBikesTrashTLobbySurface Parking (17 Spaces)ElevStairStairRamp DownTrash1 BR1 BR1 BR1 BRElevStairStairPilot Knob RdEagan Woods Dr2BR FlexSpace1BR1BRDrive-Through Queue (6 cars)StairElevStairMech./Elec.Mech./Elec./Maint.Parking (28 Spaces) Building Above Circulation Retail Common Offi ce PROGRAM SUMMARYBuilding Height 4 stories (42’) + Below-Grade ParkingBuilding Area49,804 sf (includes 12,900 sf subgrade parking)1 Bedroom 14 units2 Bedroom 10 unitsUNIT COUNT 24 unitsParking45 total spacesincludes 2 accessible spaces1.9 spaces per unitFAR 1.26Density 32 units / acres Site Area 28,957 sf (0.66 acres)Site Plan2nd - 4th Floor PlanBelow-Grade Parking Level65’-0”Trail Connectionrs)10.24.202265’-0”Figure 2: Concept Plan2670 Eagan Woods Drive Concept Plan ReviewWFH 1-Bedroom UnitWFH 2-Bedroom UnitOffice/Service/1BRRegional TrailTrail Connection !! !! !! ! ! !! ! ! !! !! !! ! ! ! ! !! !!! !! ! !!!! !! ! ! !! !! !! !! !!! !! !! ! ! !!!! ! !! ! !! !! !! !! !!!!! ! !! ! !! !! !! !! !! ! ! !!!!!!! !!!!!! !! !!!!!! !!!! !! ! !! ! !! ! !! !! !! ! ! !! ! !! !! ! !!! !! ! !! !!!! !!!!! ! !!!!!!!!!!!!!!!! ! ! H rr MSP International Airport: 8 minutes Central Park Commons (HyVee)PILOT KNOB RDPILOT KNOB RDEagan Promenade (Byerly’s) Town Centre 2670 Eagan Woods Drive Minnesota River GreenwayMinnesota River GreenwayData Source: Dakota County GIS, MN Geospatial Commons, Metro Transit Created by: kamp 10.24.2022 !Transit Stops Transit Routes Trails Regional Regional Trails and Bike Networks !Transit Stops Transit Routes OBig Rivers Regional TrailBig Rivers Regional TrailFigure 3: Connections, Access & Amenities 2670 Eagan Woods Drive Concept Plan Review 35E 494 13 YANKEE DOODLE RDYANKEE DOODLE RDLEXINGTON AVELEXINGTON AVELONE OAK RDLONE OAK RD FORTUNE 500s Best Buy: 14 minutes United Health Group: 23 minutes Supervalu: 23 minutes C.H. Robinson: 28 minutes FORTUNE 500s CHS: 11 minutes FORTUNE 500s Ecolab: 15 minutes 3M: 19 minutes Downtown Saint Paul: 15 minutes Minneapolis: 20 minutes 2 Miles to Amenities 2 Miles to Amenities Estimated Market Values Single Family Residential ~$350,000 - $550,000 Vacant Office Space ~215,000 Square Feet Power Systems Building Eagandale Business Center 1340 Corporate Center Curve Eagandale Corporate CenterEagan Woods Office Park (Former Prime Therapeutics) Factory Motor Parts Summit Orthopedics Choice Banks 2670rr Data Source: Dakota County GIS, MNCAR, MN Geospatial Commons Created by kamp 10.24.2022 Regional Trails and Bike Networks !Transit Stops Transit Routes O Figure 4: Surrounding Area & Market Data 2670 Eagan Woods Drive Concept Plan Review PILOT KNOB RDPILOT KNOB RDAVALON AVEAVALON AVE HIGHVIEW AVEHIGHVIEW AVE Eagandale Point Eagan Woods Office Center CORPORATE CENTER DR.CORPORATE CENTER DR.EAGAN WOODS DR.EAGAN WOODS DR. 1 October 24, 2022 Mayor and Members of the City Council City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 RE: Application for Concept Plan Review for a Comprehensive Plan Amendment For Site located at 2670 Eagan Woods Drive (PID 104726301020) Dear Mayor and Members of the City Council, On behalf of Kamp Real Estate & Development (“Kamp”) please accept this letter and attachments as our request for informal Concept Plan Review of a Comprehensive Plan Amendment (“CPA”) for the property located at 2670 Eagan Woods Drive (“Property”). A brief overview of Kamp can be found in Attachment 1. We are excited to discuss our Project with you, hear your feedback and learn more about your perspectives regarding our requested CPA. Kamp understands that your Comprehensive Plan is an important policy document and that any consideration of amending the document should be carefully evaluated. To that end the following materials provide an overview of our Proposed Project and why we think this site, and the City of Eagan, is a perfect place for our Project. Proposed Project Summary Location 2670 Eagan Woods Drive Site Size 0.67 Acres (29,185 SF) Proposed Project 21 to 24 Work-From-Home (WFH) Residential Units 1,000 to 2,800 SF of Retail/Commercial/Office Concept Plan is provided as Figure 2 (8.5”x11” and 11”x17) Proposed Phasing The Project will be constructed in one Phase. Desired construction start is Spring 2023 and construction is anticipated to take approximately 10 to 12 months. Application Request Concept Plan Review of Comprehensive Plan Amendment Reguide subject Property to Mixed Use 2 Existing Conditions The subject Property is currently vacant, and Kamp’s understanding is that the site has never been developed. There are no identified wetlands on the subject parcel per the National Wetland Inventory (NWI). The site contains intermittent trees and vegetation along the south and western property lines. The site is relatively flat with a gentle slope to the road right-of-way and on the western portion of the site. Uses surrounding the site include a mix of commercial, office, medical office, private recreation and nearby single-family residential neighborhoods. 2040 Adopted Land Use Designation On Figure 3.3, Chapter 3: Land Use of the City’s 2040 Comprehensive Plan the subject Property is guided as Retail/Commercial. This land use designation is consistent with the approved 2007 plat of the subject Property for a retail building. See Figure 1: Approved 2007 Plat. Current Zoning In 2007 the subject Property was platted as Lot 2 Block 1 of the Manley Commons 1st Addition subdivision and was approved for a standalone 4,600 SF retail building that was planned for a drive-through business and supporting surface parking lot. The retail project received full approval and was rezoned as part of that process to Planned Development (PD). Existing Improvements The approved retail plan shown on Figure 1 includes a shared driveway and access with Lot 1 Block 1 Manley Commons 1st Addition that is developed with the Holiday Station convenience store. The shared driveway is constructed with the centerline along the property line between the two parcels. Given the previously approved plat, the utilities are all either stubbed or installed on the site. Available utilities include water, sanitary and stormwater infrastructure. As shown on Figure 3: Connections, Access & Amenities, the Proposed Project is well connected to the transportation system providing exceptional access to the region. The Proposed Project would be accessed by car from Eagan Woods Drive with no direct auto access planned to Pilot Knob Road. The Property is well connected to an existing regional trail along Pilot Knob, and the plan is to provide a direct trail connection to the Proposed Project to create a more walkable and bikeable environment reinforcing multi-modal transportation connections in the area. This site has exceptional proximity to the MSP airport – which we understand is both an opportunity and a challenge. The proximity of the site requires additional sound mitigation in our construction, but the proximity to the airport is a significant benefit and is a key metric in our site selection process given our Work-From-Home development concept. Proposed Project and Future Land Use As shown on Figure 2: Concept Plan we are proposing to develop the Property with a small mixed-use building that includes retail/service uses on the Pilot-Knob facing portion of the ground floor with Work- From-Home (WFH) residential units on the ground floor, 2nd, 3rd and 4th floors. A summary of the anticipated use of each space is provided: 3 Ground Floor Retail/Services Kamp is in communication with a national coffee retailer that is interested in the site for a small “kiosk” type of store that provides drive-through and walk-up service. The kiosk format has no indoor congregating or sit- down space provided. We believe that this use is a perfect match for the surrounding office and business users providing a coffee option in the area that currently does not exist. We’ve discussed with our neighboring property owners what type of retail business is needed in the area, and hands down a place to grab coffee is number one. Additionally, a walk-up window connected to the regional trail will provide access to walkers and bikers on the trail along Pilot Knob that will further establish this corridor as walkable and bikable – reinforcing it as part of the Regional Bicycle Transportation Network (RBTN) consistent with your 2040 Comprehensive Plan. Finally, we plan to include a walk-up window internal to the building that will provide an accessible caffeine break to our residents working from home many days of the week. We continue to explore the market viability of including additional boutique office and/or service-oriented space on the main floor of the building. As demonstrated on Figure 4: Surrounding Area & Market Data, there is a large quantity of office space vacant in the immediate area which makes financing service and/or office uses challenging without an identified user. However, we continue to evaluate and consider small scale retail/commercial/office space and would entertain boutique users interested in the site. Work -F rom -H ome (WFH) Residential units After countless hours of research, we concluded that the hybrid work environment is here to stay. From Fortune 500 companies to small businesses, the way we do work has changed. The change does not eliminate the need for office space, instead it transfers the office space responsibility from the employer to the employee. With our vision firmly established to bring functional office space into multi-family units, we started our process by designing the floorplan of our units first. Each of our Work-From-Home units provides dedicated and functional office spaces without having to dedicate a full bedroom or having workspaces spilling into living areas. Our plans provide one (1) dedicated WFH space in every one-bedroom unit and two (2) dedicated WFH spaces in every two-bedroom unit. Kamp recognizes that remote and hybrid employees commute at times to be “in person” at their main office, so proximity to major employment centers and Fortune 500 companies is critical (See Figure 3: Connections, Access & Amenities). Based on the site size of the Property the proposed density of the Project is calculated as follows: 24 Units/0.67 Acres = ~36 Units Per Acre Though not how we typically think about “density,” the density of dedicated WFH office space is: 14 – 2 Bedroom Units = 28 Dedicated Office Spaces 10 – 1 Bedroom Units = 10 Dedicated Office Spaces 38 Dedicated Office Spaces/0.66 Acres = 58 Dedicated Offices Per Acre Perhaps tongue and cheek, but the reality is that as the workforce transitions to a permanent hybrid work environment, the number of office workers working from the comfort of their homes will add to the vibrancy and activity of the area, especially since the area is currently developed with office complexes and users. (See Figure 4: Surrounding Area & Market Data). Project Amenities Unlike other large-scale multi-family buildings, the amenities included in our concept are focused on the Work-From-Home design. A fully furnished, high-tech conference room is designed and planned for the 4 main floor adjacent to the coffee kiosk. This space is intended to allow for small meetings, or virtual engagement for the residents of our building reinforcing the functionality of the work environment in our development. In addition to the shared conference space, each unit is designed with a full laundry, storage and pet room. After the pandemic nearly 70% of all households have a pet, so we think a great amenity is a room in every unit where a kennel, sports gear and washer/dryer can functionally coexist. Proposed Guiding We propose to re-guide the subject Property to Mixed-Use (MU). We believe that our Proposed Project meets your mixed-use goals established in the adopted Comprehensive Plan including the following: Mixed-Use Policy #3: Encourage commercial uses in mixed-use areas with high-density housing that provides goods and services at a community or neighborhood scale. Mixed-Use Policy #5: Where practical, encourage multi-story buildings with office space or residential housing over commercial retail spaces (vertical mixed-use). Mixed-Use Policy #8: Encourage the conversion of single use retail uses and centers into mixed-use areas by strategically introducing residential development, civic uses and offices. Compatibility with Surrounding Area We believe our Proposed Project is consistent, compatible and enhances the surrounding area. A “missing middle” scale mixed-use building provides a reasonable and natural transition to surrounding uses while reinforcing the office campus development patterns nearby. As previously mentioned, the intensity of how office buildings and office parks are used has changed dramatically since the pandemic. This is further supported on Figure 4 that identifies nearby office vacancies. With dwindling demand for large office spaces, adjacent users are likely to begin evaluating adaptive reuse of buildings and redevelopment or development opportunities with uses such as mixed-use and multi-family residential. We believe that our use is not only compatible with the existing office buildings from a scale and use perspective but is also compatible if the nearby buildings were to be to be converted to residential or hotel types of uses. Approximately 500-feet to the south of our Property are single-family residential neighborhoods (See Figure 4). Our Proposed Project provides options for residents that may not be able to afford single-family housing options in Eagan but who want to be in a highly accessible, well-connected part of the City. Finally, the inclusion of a coffee kiosk and/or small retail/service users will provide additional amenities to nearby residents. In addition to the immediate surrounding land uses, the site is well connected to the amenities that Eagan has to offer. The site is approximately 2-miles to the recently developed Central Commons Retail development (a short 5-minute drive or 10-minute bike ride from the subject Property). 5 Anticipated Challenges and Issues A summary of preliminary land use issues includes the following: • If the Comprehensive Plan Amendment is granted, we will need to work with the City through the Planned Development (PD) Amendment process. • The proximity of the site to the MSP Airport means that any building will need to be constructed to meet the standards and guidelines established by MAC. We understand this and are working with our architect to meet the standard – it is important to the livability and marketability of the units. • Our current Concept Plan includes some conflicts with the existing stormwater management infrastructure. Design of this system, as well as accommodates to control for stormwater must be addressed since rules have changed since the 2007 plat was approved. • Further refinement of the plan for Eagan Woods Drive will need to be evaluated since the ROW impacts the development site and the surface parking plan. • We will need to work with Holiday Station store regarding the existing private easements for the shared driveway and access. All projects have challenges and issues, and we are confident that we can find workable solutions collaboratively with the City. We look forward to the work session on November 7th to hear your feedback. Thank you for your time and consideration of our request. Sincerely, Jennifer Haskamp, AICP Ellison Yahner, AICP President Vice President Kamp Real Estate & Development 246 S. Albert Street, Suite 2A Saint Paul, MN 55105 www.kamp-mn.com Kamp is one of the only women-led, women-owned development companies in Minnesota, and one of a handful in the nation. JENNIFER HASKAMP, AICP PRESIDENT ELLISON YAHNER, AICP VICE PRESIDENT NICK VIVIAN PARTNER OUR CONCEPT Kamp Real Estate & Development (“Kamp”) is a new venture launched by Jennifer Haskamp, Ellison Yahner and Nick Vivian in 2021. Our vision is to create places where people want to live, work and recreate. Our focus is to create developments that 1) meet demand for small and medium size buildings (“missing middle”), 2) are accessible and well connected with multi-modal transportation options, and 3) are designed for the new Work-From-Home (WFH) hybrid work environment. Our research indicates that homes have to do more than they did pre-pandemic. Homes are no longer just for sleeping, now they have to accommodate our work too. Traditional multi-family product types haven’t responded to this paradigm shift. Kamp’s concept does. 15 Fortune 500 Companies call Minneapolis-St. Paul Metro Area Home. Another 320 have a local presence in the Twin Cities. More than 90% of employers are planning to adopt a hybrid working model for their knowledge workers in 20221. Airport proximity will continue to be important as travel demand continues to rise to pre-pandemic levels.2E 90% 15 SITE SELECTION METRICS & TARGET MARKETS $Kamp’s site selection metrics focus on access, community character and cost performance. Key metrics include: proximity to MSP Airport, interstate roadways, regional and local trails, shops and services. Attachment 1: About Us 2670 Eagan Woods Drive Concept Plan Review 1Harvard Business Review: 11 Trends that will Shape Work in 2022 and Beyond 2ACI Positive and immediate impact on global air travel demand as restrictions relax Special City Council Workshop  November 7, 2022      V. 2023 ENTERPRISE AND SPECIAL REVENUE FUND BUDGETS    Action to be Considered:    To provide direction to Staff regarding proposed 2023 operating budgets for:    ENTERPRISE FUNDS  1) Public Utilities (Water, Sanitary Sewer, Street Lighting, Storm Drainage and Water Quality)  2) Civic Arena  3) Cascade Bay  4) Community Center    SPECIAL REVENUE FUND  1) ETV  2) Tree Mitigation  3) Opioid Crisis Prevention    Facts:    GENERAL INFORMATION     By definition, enterprise funds are established to account for self‐supporting activities with  revenues generated primarily from user fees set by the City Council on an annual basis. Special  revenue funds are established to account for and report the proceeds of specific revenue  sources that are restricted or committed to expenditure for specific purposes other than debt  service and capital projects.     The 2023 budget is the second year of the 2‐year 2022‐2023 budget cycle. Though presented  alongside the 2022 budget figures at the December 7, 2021 City Council meeting, no formal  action was taken on the 2023 budget figures at that time.       Very few changes were made to the 2023 budgets, with most pertaining to personnel  adjustments that were already approved by the City Council.  Other adjustments are noted  below.      Only the 2023 budgets for the above‐listed special revenue funds are under consideration for  this workshop. The City’s other special revenue funds will be included on a regular City Council  meeting agenda in December.     The Budget Team—City Administrator Miller, Assistant City Administrator Alig, Finance Director  Feldman, Assistant Finance Director Foiles —met with the responsible budget managers to  review and discuss the respective 2023 budget proposals. Budgetary highlights for the  respective funds are included below.     Staff responsible for these budgets will be available at the meeting to expand on policy issues  and respond to questions.     Special City Council Workshop  November 7, 2022    PUBLIC UTILITIES (Water, Sanitary Sewer, Street Lighting, Storm Drainage, and Water Quality)     The Public Utilities Fund budget reflects a net cash outflow of $2.1 million in 2023. Capital  expenditures by nature can result in large fluctuations in total expenditures from year to year.   City staff construct long term capital improvement plans as a means to anticipate these  fluctuations and plan for them accordingly.        The City participates in an annual utilities rate survey by AE2S, an engineering consulting firm.   In the 2022 survey, Eagan’s combined rates for water, wastewater and stormwater ranked 5th  lowest among the 27 Twin Cities metro communities responding to the survey.       The Council will be asked to adopt the 2023 utility rates when the fee schedule is presented in  December. In 2021, the City conducted a long‐term utility needs analysis and related rate study  to assist in the determination of utility rates for the short and long‐term.  Finance staff  continued the use of this model with some changes to the underlying assumptions as a result of  new and better information being available.  The resulting impact shows a lesser utility rate  increase than what was originally proposed in 2023.  The proposed rate increases below result  in the average household paying 5.5% more than last year:  o Water:  4 %  o Sanitary sewer:  10 %   o Street lighting:  1.5 %  o Storm drainage/water quality:  5 %       Based on the current model and long‐term approach, rates are expected to stay consistent and  near inflationary levels for the foreseeable future.  The model does contemplate the issuance of  debt in 2024 in order to retain ample operating cash reserves accordingly with our current  practice.     The Metropolitan Council Environmental Services (MCES) charges municipalities for the  collection and treatment of wastewater. Annually, the MCES rate is adjusted based on the  overall volume of wastewater treated during the period two calendar years prior. The rate is  allocated to municipalities based on their respective percentage of the overall system flow  during that period. The City’s MCES charge for 2023 has been set at $6,875,000, an increase of  $475,000 or 6.9% from 2022, and is included in the sanitary sewer operational budget.     Based on the current model and long‐term approach, rates are expected to stay consistent and  near inflationary levels for the foreseeable future.  The model does also contemplate the  issuance of debt in 2024 in order to retain ample operation cash reserves under our current  practice of 3 months of operating cash.     The Public Works Department’s 5‐Year Capital Improvement Plan (2023‐2027) was approved at  the regular City Council meeting on June 7, 2022. Included in that plan were 2023 capital  expenses totaling $5,759,700 across all utility departments. The 2023 budget as presented  includes $712,400 in capital costs for ancillary vehicle and equipment purchases to support  operations. The City funds these purchases by setting aside money as part of the Renewal and  Replacement model in the same way as other Enterprise Funds.    Special City Council Workshop  November 7, 2022     The River Valley Acre (RVA) site has been used by the City over the past 25 years as an important  alternate site for maintenance operations and public safety training. The use of American  Rescue Plan Act (ARPA) funds has been proposed to complete a site study in 2023 regarding  future RVA improvements over the next 20+ years.  The study will review whether expansion is  necessary and will include the review of the 6.8 adjacent acres owned by the City of Apple  Valley.  With current needs for a sewer dumping station, vehicle and equipment storage, and  Public Safety training enhancements, acquisition of at least a portion of the Apple Valley  property is being proposed in 2023 to address immediate operational improvements.     The 2023 Utilities budgets no longer includes $165,000 for asset management software.  City  staff determined the proposed software solutions were not the best fit for the city. Instead,  further evaluation of software needs, along with use of our existing software are being  considered to meet current and future needs.    CIVIC ARENA     The Council will be asked to adopt all 2023 Civic Arena rates when the City‐wide fee schedule is  presented in December.  Included in these rates is a $5 increase in the prime‐time and non‐ prime hourly ice rental rates. The 2023 budgeted revenues for the Civic Arena reflect the  anticipated 2023 ice rental rates.      Personal service expenses reflect the reclassification of the skate school coordinator from a 0.8  full‐time equivalent (FTE) position to a 1.0 FTE position. The generation of additional program  revenues are anticipated to offset the costs associated with the increase in position.     Budgeted capital outlay expenses in 2023 include the painting of the east ice rink floor ($30,000)  and the addition of theater lighting to the east arena ($30,000) to allow for program flexibility  between the east and west arenas.      In accordance with the direction of Council for the planned use of ARPA funds, a transfer of  $210,300 is budgeted in 2023 to support the Civic Arena as it continues to recover from the  operational impact of the COVID‐19 pandemic.    CASCADE BAY     Total attendance at Cascade Bay in 2022 was 98,036 patrons, an increase of 13,216 patrons or  15.6% above the 2021 attendance total of 84,820 patrons.       The higher‐than‐expected attendance for the 2022 season resulted in daily admission and  season pass revenues exceeding budget by approximately $292,000.     The fee for daily admission was increased $1 for the 2022 season, while season pass rates were  increased $10, the first rate increase for a season pass since the 2015 season. There are no rate  increases proposed for the 2023 season.     In response to the successful season experienced at Cascade Bay in 2022, City staff have revised  the budgeted 2023 revenue figures to reflect an optimistic, yet conservative, outlook on the  Special City Council Workshop  November 7, 2022    2023 season. Daily admission revenues are programmed to total $750,000 in 2023, an increase  of $68,000 from the 2022 budget.     In accordance with the direction of Council for the planned use of ARPA funds, a transfer of  $171,500 is budgeted in 2023 to support Cascade Bay as it continues to recover from the  operational impact of the COVID‐19 pandemic.    COMMUNITY CENTER     The Community Center continues to serve Eagan’s residents and businesses as a fitness center  and an event/meeting facility. As a means to adapt to changes in desired service models, City  staff are placing a stronger emphasis on enhancing the recreation experience offered at the  Community Center through new programming efforts.      The Council will be asked to adopt the 2023 Community Center rates when the fee schedule is  presented in December.  At this time, there are no planned rate increases for services provided  at the Community Center. In an effort to regain fitness members, room rentals, and other  building users, City staff are adjusting program offerings to increase daily use and revenue.     As the Community Center continues to recover from the impacts of the COVID‐19 pandemic,  City staff anticipate fitness membership and facility rental revenues will continue their rise.  Fitness memberships and facility rental revenues are budgeted to increase $75,000 and  $61,500, respectively, from levels experienced in 2022.      Operational expenses include inflationary cost adjustments for natural gas and electricity  expenses. Personal service expense budget for 2023 incorporates the replacement of the ECC  Facility and Project Manager with a Facility Operations Supervisor as authorized at the October  18, 2022, City Council meeting.     From the Community Center’s inception, it has been recognized that fee revenues from  operations alone is insufficient to cover operating expenses.  The budget has historically  included a transfer of antenna lease revenues from the Public Utilities Fund to help cover the  operating costs, which for 2023 is budgeted at $408,000.  Additionally, in accordance with the  direction of Council for the planned use of ARPA funds, a transfer of $561,700 is budgeted in  2023 to support the Community Center as it continues to recover from the operational impact  of the COVID‐19 pandemic.    ETV/PEG FEES FUND     ETV is funded by a combination of PEG fees and franchise fees. By FCC rules, PEG fees can only  be used for programming costs, not staff costs, so franchise fees cover ETV staff costs and PEG  fees fund the balance.      The ETV department was reorganized in 2022 following the retirement of the ETV Operations  Supervisor. This reorganization led to a reduction of 1.0 FTE in the department and resulted in  $131,200 of cost savings in personal service for the 2023 budget.    Special City Council Workshop  November 7, 2022     Capital expenditures for 2023 total $67,800 and include an expansion of the edit share  production software as well as the replacement of miscellaneous studio equipment.     As more people “cut the cord” and move to streaming services, City staff anticipate there will be  a decline in PEG and cable franchise fee revenues. Despite PEG and cable franchise revenues  remaining consistent in recent years, City staff have incorporated a conservative 3% reduction in  the PEG fee revenue for the 2023 budget.     TREE MITIGATION     Tree mitigation fees charged in accordance with the City’s tree preservation plan are the  primary funding source for the fund. Program expenditures include a full‐time tree inspector as  well as contractual services for the treatment and/or removal of trees.     In 2020, the City implemented a seven‐year plan to address concerns of the emerald ash borer  (EAB) infestation threatening the City’s ash trees. Tree mitigation funds have been earmarked to  support the EAB mitigation efforts until other funding sources are identified.      City staff have continued their efforts to mitigate the spread of the EAB infestation throughout  the City in accordance with the emergency plan established in 2020. The budgeted 2023  expenditures include an additional $145,000 of contractual service costs for EAB mitigation.    OPIOID CRISIS PREVENTION     During 2021, two proposed nationwide settlements were reached that resolved all opioid  litigations brought by states and local political subdivisions against the three largest  pharmaceutical distributors. City Council authorized the City’s participation in the National  Opioid Settlement at the November 1, 2021, City Council Meeting.     The City of Eagan was awarded $812,111.60 as part of the National Opioid Settlement, with  installment payments planned to be received over the next 18 years.     On October 17, 2022, the City received its first installment payment totaling $26,234.35 with  approximately an additional $12,000 coming this year.  Timing of funding is still being  determined, however, City staff anticipate installment payments of roughly $50,000 per year on  average.       Use of the opioid funds is restricted based on the settlement agreement. City staff are reviewing  the best use of the funds. A more detailed program budget will be presented to the Council in  December.       Attachments: (3)    V‐1   2022 Metro Utility Rate Survey Results  V‐2   2023 Enterprise and Special Revenue Fund Budgets   V‐3   Slideshow presentation  $0.00 $40.00 $80.00 $120.00 $160.00 $200.00 Blaine, MN Maple Grove, MN Spring Lake Park, MN Ramsey, MN Eagan, MN Woodbury, MN Oakdale, MN Inver Grove Heights, MN Apple Valley, MN Anoka, MN Eden Prairie, MN Plymouth, MN Burnsville, MN Mounds View, MN Chaska, MN Fridley, MN Dayton, MN Richfield, MN Falcon Heights, MN Columbia Heights, MN New Brighton, MN St. Paul, MN Waconia, MN Roseville, MN Minneapolis, MN Arden Hills, MN Carver, MN Orono, MN $36.80 $42.01 $42.84 $48.79 $51.03 $51.27 $52.25 $56.13 $56.72 $57.67 $57.90 $59.63 $62.56 $64.57 $68.06 $68.48 $70.49 $75.54 $77.57 $79.40 $80.16 $87.57 $91.86 $97.31 $103.74 $104.79 $111.20 $157.27 MINNEAPOLIS/ST. PAUL METRO AREAMINNEAPOLIS/ST. PAUL METRO AREA Water Wastewater Stormwater Copyright 2022 © AE2S - All Rights Reserved The Financial Link Sanitary Street Storm Water Quality Revenues: Service charges 7,395,300$ 9,475,000$ 933,700$ 1,424,200$ 2,136,200$ 21,364,400$ Connection permits 10,000 5,000 - - - 15,000 Meter sales 50,000 - - - - 50,000 Other 16,000 12,000 3,500 - 35,000 66,500 Total revenues 7,471,300$ 9,492,000$ 937,200$ 1,424,200$ 2,171,200$ 21,495,900$ Operating Expenses: Personal services 2,895,400 1,270,900 14,600 326,000 665,100 5,172,000 Supplies, repairs, maint.691,200 168,700 - 88,400 53,600 1,001,900 Other services & charges 2,187,400 457,700 623,700 444,000 264,900 3,977,700 Merchandise for resale 32,500 - - - - 32,500 Transfers Out 1,141,800 570,900 57,100 38,100 95,200 1,903,100 MCES disposal charges -6,875,000 - - - 6,875,000 Total operating expenses*6,948,300$ 9,343,200$ 695,400$ 896,500$ 1,078,800$ 18,962,200$ Net operating cash inflow(outflow) 523,000 148,800 241,800 527,700 1,092,400 2,533,700 Capital 1,766,700 1,794,000 434,500 1,430,000 1,046,900 6,472,100 *Excluding depreciation expense Other non-departmental revenues: Interest income 460,000 Connection charges 293,500 Antenna lease revenue (excludes ECC allocation) 1,003,800 Other 35,100 Total - non-dept revenue 1,792,400 Net cash inflow (outflow)(2,146,000)$ Public Utilities Fund 2023 Budget Revenue and Expense Summary Water Sewer Lighting Drainage TOTALS City Council Worksession 1 November 7, 2022 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Operating Revenues Group Sales 221,533$         106,700$         143,825$         219,700$         275,800$          Concessions 27,719              12,373              6,018                40,000              10,000               Merchandise Sales 6,876                487                    1,434                9,000                9,000                 Vending 12,843              4,391                5,059                10,000              10,000               Rental 719,845            540,644            800,363            829,100            853,100             Other 80,323              35,335              66,685              23,000              27,000                   Total Revenues 1,069,139        699,930            1,023,384        1,130,800        1,184,900         Operating Expenses Personal Services 614,442$         617,106$         580,858$         726,000$         764,300$          Parts & Supplies 55,327              51,939              41,854              72,800              76,900               Merchandise for Resale 24,971              11,090              9,057                45,000              30,000               Services & Other Charges 263,290            225,732            258,389            304,600            314,300             Capital Outlay ‐ Operating 15,973              47,753              90,381              58,100              89,700                   Total Expenses 974,003            953,620            980,539            1,206,500        1,275,200            Operating Gain (Loss)95,136$            (253,690)$        42,845$            (75,700)$          (90,300)$           Other Financing Sources (Uses) CARES Transfer In (Restated)‐                     219,774             ‐                     ‐                     ‐                      ARPA Transfer In ‐                     ‐                     5,100                195,700            210,300             Renewal & Replacement Contribution (120,000)          ‐                     (120,000)          (120,000)          (120,000)              Total Other Financing Sources (Uses)(120,000)          219,774            (114,900)          75,700              90,300                  Total Gain (Loss)(24,864)$          (33,916)$          (72,055)$          ‐$                  ‐$                   Ending Operating Cash Balance (271,096)$        (305,012)$        (377,067)$        (377,067)$        (377,067)$         Ending Capital Reserve Cash Balance 700,323            608,983            579,881            641,781            409,781             Civic Arena Fund 2022‐2023 Budget Revenues, Expenses and Other Disbursements City Council Worksession 2 November 7, 2022 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Operating Revenues Daily Admissions/Season Pass 826,901$         (102)$                796,554$         837,000$         915,000$           Group Sales 164,632            (225)                  28,374              165,000            170,000             Concessions 263,042             ‐                     207,785            245,000            245,000             Classes / Camps 18,890              (28)                     15,943              20,000              20,000                Merchandise Sales 18,330              ‐                     15,203              18,000              18,000                Rental 19,852              ‐                     2,600                15,000              15,000                Other 61,349              25,105              (2,191)               1,000                1,000                      Total Revenues 1,372,996        24,750              1,064,268        1,301,000        1,384,000          Operating Expenses Personal Services 724,654$         194,119$         708,181$         941,200$         974,200$           Parts & Supplies 106,459            22,658              73,569              124,400            129,400             Cost of Concession Sales 134,493             ‐                     103,136            135,000            135,000             Services & Other Charges 162,275            66,170              128,265            210,400            225,400             Capital Outlay 23,476              51,345              36,679              4,200                1,500                      Total Expenses 1,151,357        334,292            1,049,830        1,415,200        1,465,500             Operating Gain (Loss)221,639$         (309,542)$        14,438$            (114,200)$        (81,500)$            Other Financing Sources (Uses) CARES Transfer In (Restated)‐                     357,023             ‐                     ‐                     ‐                      ARPA Transfer In ‐                     ‐                     ‐                     204,200            171,500             Renewal & Replacement Contribution (90,000)             ‐                     (90,000)             (90,000)             (90,000)                 Total Other Financing Sources (Uses)(90,000)             357,023            (90,000)             114,200            81,500                   Total Gain (Loss)131,639$         47,481$            (75,562)$          ‐$                  ‐$                    Ending Operating Cash Balance 307,854            355,335            279,773            279,773            279,773             Ending Capital Reserve Cash Balance 1,669,175        1,152,874        879,553            915,353            998,553             Aquatic Facility (Cascade Bay) Fund 2022‐2023 Budget Revenues, Expenses and Other Disbursements City Council Worksession 3 November 7, 2022 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Operating Revenues Personal Trainers 79,577$            37,585$           54,778$            40,000$            50,000$            Equipment Rental 29,186              2,327               2,631                 ‐                     ‐                     Parks/Rec Programming 34,836              50,491             68,755               73,500               79,000              Concessions/Vending/Merchandise Sales 33,114              3,850               18,942               ‐                     ‐                     Group Sales 46,529              9,060               11,500               31,000               36,000              Daily Admissions 86,239              38,453             61,073               67,000               70,500              Memberships 768,136            376,369           373,605            425,000            500,000            Room & Facility Rentals 383,314            99,799             284,950            275,000            336,500            Contract Revenue 118,298            21,325             48,735               60,000               75,000              ECVB Rent 17,086              17,086             17,711               15,000               21,500                  Total Operating Revenues 1,596,315        656,345           942,680            986,500            1,168,500        Operating Expenses Personal Services 1,341,313$      1,195,110$     1,168,232$       1,494,500$       1,488,800$      Parts & Supplies 136,614            51,270             39,515               77,100               79,600              Services & Other Charges 386,700            333,447           363,951            404,400            430,600            Cost of Merchandise Sales 21,960              1,282               3,642                 7,300                 7,300                Capital Outlay ‐ Operating 18,649              17,934             6,221                 8,900                 6,900                    Total Operating Expenses 1,905,236        1,599,043       1,581,561         1,992,200         2,013,200           Operating Gain (Loss)(308,921)$        (942,698)$       (638,881)$         (1,005,700)$     (844,700)$        Other Financing Sources (Uses) Other Revenue 99,225              40,528             48,995               50,000               50,000              Antenna Lease Revenues Transfer In 344,099            342,600           396,600            385,000            408,000            CARES Transfer In (Restated)‐                     379,086            ‐                     ‐                     ‐                     ARPA Transfer In ‐                     ‐                    436,190            745,700            561,700            Renewal & Replacement Contribution (175,000)          ‐                    (175,000)           (175,000)           (175,000)             Total Other Financing Sources (Uses)268,324            762,214           706,785            1,005,700         844,700               Total Gain (Loss)(40,597)$          (180,484)$       67,904$            ‐$                   ‐$                   Ending Operating Cash Balance 1,313,175        1,132,691       1,200,595         1,200,595         1,200,595        Ending Capital Reserve Cash Balance 1,584,487        1,508,652       1,678,330         1,759,730         1,628,630        Eagan Community Center Fund 2022‐2023 Budget Revenues, Expenses, and Other Disbursements City Council Worksession 4 November 7, 2022 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues PEG fees 290,855$         280,860$         284,763$         281,300$         272,900$          City Contribution ‐ Cable Franchise Fees 459,381            467,143            477,445            533,700            439,000             CARES/ARPA Transfer ‐                     11,406              ‐                     300,000            ‐                      Other Charges 39,382              12,775              863                    12,200              14,200                   Total Revenues 789,618            772,184            763,071            1,127,200        726,100             Expenditures Personal Services 466,482$         466,991$         476,714$         533,700$         430,000$          Parts & Supplies 12,696              4,346                3,869                35,700              35,700               Services & Other Charges 115,090            82,238              96,195              123,600            123,100             Capital 279,108            86,437              29,702              405,400            67,800                   Total Expenses 873,376            640,012            606,480            1,098,400        656,600             Total Gain (Loss)(83,758)            132,172            156,591            28,800              69,500               Ending Cash Balance (PEG)1,012,948$      1,145,120$      1,301,711$      1,330,511$      1,400,011$       Expenditure ‐ type PEG 413,995            172,869            129,035            555,500            217,600             Non‐PEG 459,381            467,143            477,445            542,900            439,000                 Total 873,376            640,012            606,480            1,098,400        656,600             ETV 2022‐2023 Budget Revenues, Expenses, and Other Disbursements City Council Worksession 5 November 7, 2022 2019 2020 2021 2022 2023 Actual Actual Actual Budget Budget Revenues Tree Mitigation 472,640$         245,870$         35,810$           25,000$           25,000$            Investment Income 16,215              10,605              399                   4,000                4,000                 Transfers In ‐                    2,737                ‐                    ‐                    ‐                         Total Revenues 488,855           259,212           36,209              29,000              29,000               Expenditures Personal Services ‐$                  12,491$           59,348$           94,000$           100,000$          Services & Other Charges 84,085              14,881              31,469              75,100              220,100                Total Expenses 84,085              27,372              90,817              169,100           320,100            Operating Gain (Loss)404,770$         231,840$         (54,608)$          (140,100)$        (291,100)$         Ending Operating Cash Balance 475,210$         707,050$         652,442$         512,342$         221,242$          Tree Mitigation 2022‐2023 Budget Revenues, Expenses, and Other Disbursements City Council Worksession 6 November 7, 2022 2023 Enterprise & Special Revenue Fund BudgetsNovember 7, 2022 city Council Workshop Funds CoveredEnterprise Funds•Public Utilities‐Water‐Sewer‐Street Lighting‐Storm Drainage‐Water Quality•Civic Arena•Cascade Bay•Community CenterSpecial Revenue Funds•ETV•Tree Mitigation•Opioid Crisis Prevention General Information•Enterprise funds supported by user fees•Special revenue funds supported by PEG fees and tree mitigation fees•New Special Revenue Fund is supported by Opioid settlement funds•This is second year of two‐year budget•COVID has had significant impact on recreation enterprise funds Public Utilities-$3.07-$4.35-$6.36-$4.68-$8.30-$2.10-$10.0-$8.0-$6.0-$4.0-$2.0$0.02018 2019 2020 2021 2022 2023MILLIONSCash flow History PublicUtilitiesLong‐term Rate model:Combination of Bonding or other Cash proceeds for 2023 projects (Bonding would occur in 2024)Proposed Rate adjustments: Staff and Maintenance expense Improvements to aging infrastructureMet Council Wastewater charge increase (7.4% increase) :Water 4% Sewer 10%Street Lighting 1.5% Storm Drainage/Water Quality 5%AE2S Survey – Eagan has the 5thlowest rates out of 27 metro communities PolicyQuestions ‐Utilities•Are the proposed rate increases acceptable?•Is the City Council supportive of the proposed 2023 Public Utility Budgets? Recreation FacilitiesCOVID has impacted Recreation Facilities with the Civic Arena, and Cascade Bay recovering fasterCascade Bay attendance increased by 13,216 or 15.6%Skate School program is growingFees and ChargesArena ‐$5 increase to prime and non‐prime hoursCascade Bay –No increaseECC –No increase Recreation FacilitiesLong‐standing practice to set aside money each year to fund replacement of capital items at the recreation facilitiesRevenue in 2022 are not sufficient to fund Renewal &Replacement (R&R) set‐asidesProposed budgets included the full funding of the R&R funds2023 Capital R&R set‐aside needs:Civic Arena $  120,000Cascade Bay 90,000ECC 175,000Total $    385,000 Recreation FacilitiesProposed Budget includes American Rescue Plan Act (ARPA) to replaced lost revenue as a result of the COVID Pandemic:Civic Arena $  120,000Cascade Bay 90,000ECC 175,000Total $    385,000 PolicyQuestions ‐Utilities•Is the City Council supportive of the proposed 2022 Recreation Facilities Budgets?•Is the level of ARPA dollars budgeted considered acceptable. ETVFunded by combination of PEG and cable franchise fees.  Funds have legal restrictions for uses.Department reorganized and reduced the department by 1.0 full‐time employeeFranchise Fee Funding and PEG funding is adequate in 2023 and has recently remained consistent Tree Mitigation2023 will be the fourth year of the 7‐year program to mitigate Emerald Ash Borer (EAB)Budget includes $145,000 for contractual services costs for EAB mitigation Opioid Crisis PreventionNationwide settlements were reached that resolved all opioid litigations brought by states and local governments against the three largest pharmaceutical distributors.  The City of Eagan was recently awarded $812,111 as part of the National Opioid Settlement with installment payments averaging $50,000 annually for the next 18 years.Use of the opioid funds restricted based on the settlement agreement.  City staff are reviewing best uses and plan on presenting a more detailed budget in December. PolicyQuestions –ETV and Tree Mitigation•Is the City Council supportive of the 2023  ETV or the Tree Mitigation Fund budgets? Agenda Information Memo  November 7, 2022 Eagan City Council Meeting      VI. 2023 Eagan Convention and Visitors Bureau Budget      Direction For Consideration:     To review and ratify the Board‐adopted 2023 ECVB budget and marketing priorities.         Facts:      The Eagan CVB’s 2023 budget process began early this past summer and has been  reviewed by the ECVB Executive Committee.  The budget was also reviewed by City  Liaison and Director of Community Development Jill Hutmacher by way of her position  on the Executive Committee and ECVB Board.   The mission of the Eagan Convention and Visitors Bureau is to promote Eagan as a  major conference, meeting and tourist destination through creative marketing and sales  efforts.  The organization also strives to generate a greater economic impact for Eagan,  thus enhancing the quality of life for all residents.    Pursuant to the agreement between the City of Eagan and the Eagan CVB, the Bureau is  also required to perform an economic impact study every four years. Normally the study  would’ve been performed in 2020, but officials from the City and Eagan CVB mutually  agreed to table it during the pandemic.  An allocation for a study has been made in the  2023 budget, and two options will be presented to the Council for consideration.   A 3% budget increase was approved by the Eagan CVB’s Board of Directors during their  September Board meeting. While the pandemic recovery is projected to continue,  economic factors such as inflation and volatile gas prices will likely impact Eagan’s  hospitality community in 2023.  City Liaison Jill Hutmacher and Mayor Mike Maguire  were present for Board action.   While the Eagan CVB Board operates independently from the City, Section 3.2 of the  Operating Agreement with the City of Eagan requires the ECVB to submit its work plan  and operating budget to the City Council for its “review and approval.”   The ECVB will once again play an active role in spearheading promotional efforts for  Eagan’s July 4th Funfest, Art Festival, Market Fest and Caponi Art Park while also  working with officials from Cascade Bay Waterpark and the Eagan Civic Arena on joint  marketing efforts for 2023.    Attachments: (3)    VI‐1 Summary and Highlighted changes are provided via a memo from the ECVB.  VI‐2 ECVB Budget  VI‐3 Slideshow presentation  Eagan Convention and Visitors Bureau Proposed 2023 Budget Eagan Convention & Visitors Bureau Responsible Manager: Brent Cory, President & CEO City Liaison: Jill Hutmacher City Council ECVB Board Representation: Mayor Mike Maguire PURPOSE & DESCRIPTION The purpose of the Eagan Convention and Visitors Bureau is to:  Promote Eagan as a major conference, meeting and tourist destination through creative marketing and sales efforts.  Generate a greater economic impact for Eagan, thus enhancing the quality of life for all residents. The Eagan Convention and Visitors Bureau is responsible for the following functions:  Increasing travel to Eagan by individuals, tour groups and meeting attendees, as well as increasing guest visits to area hotels, attractions, restaurants and retail outlets.  Promoting Eagan through advertising, public and media relations, creative promotions and collateral, website/Internet initiatives, and e-commerce/direct mail campaigns.  Participating in trade shows, women’s expos, sales missions, targeted sales calls and familiarization tours aimed at generating leads and business prospects for Eagan. PERFORMANCE INDICATORS 2021 2022 2023 Description Actual Projection Estimate Amount of lodging tax generated $865,071 $1,050,000 $1,170,000 Qualified leads generated through 68,465 90,000 98,500 advertising/promotional/sales efforts HIGHLIGHTS & CHANGES Overview: Shortly after the onset of COVID-19, our organization created a plan centered around a “survive, revive and thrive” concept which enabled us to focus on both short and long-term strategies. During 2020, the primary consideration was of course to help both Eagan’s hospitality community along with our very own organization survive. However, we never took our eye off what a post- pandemic world would look like, and because of our concerted efforts to keep the Eagan brand very much alive and well, our destination has been well-served because of it. Today, we find ourselves firmly positioned between the “revive and thrive” portion of our plan as we near the three-year anniversary of the pandemic. While overall hotel occupancy remains down by 13.4% when compared to 2019 figures, our RevPAR (revenue per available room) is off by only 3% while average daily rates of our hotels has actually surpassed 2019 figures by 11.4%. Considering COVID-19 reshaped the global economic landscape with our tourism and hospitality industry partners experiencing some of the greatest disruptions among impacted industries, we feel fortunate to be well on our way to a full recovery and foresee a much brighter future ahead. Turning our attention to 2023 and beyond, we realize there are still economic and regional public safety concerns to overcome. However, given the undeniable momentum that Eagan’s hospitality community has cultivated during the past two plus years, it’s our strong belief that aggressively promoting the multitude of new restaurants our community has attracted coupled with the unique events, shopping experience and renowned overnight accommodations Eagan offers will help us begin surpassing pre-pandemic figures across the board. As we begin moving into the “thrive” portion of our plans, here are just a few of the exciting highlights we’ll be spearheading in the coming year:  Our “digital doorstep” to Eagan will be elevated significantly following the launch of our brand new website! We take great pride in offering the wide array of consumers who currently utilize our website a fully optimized and responsive experience, but with our new website, we’ll be able to deliver even more given the site’s new navigational tools and dynamic design. Plus, now that over 60% of our website traffic come in via mobile devices, it’s more important than ever to position critical information in the most user- friendly manner possible. Our new site will also boast SEO (search engine optimization) enhancements that will position it ahead of our competition in several key markets. We’re excited about the upgrades being made and are confident it will serve our destination incredibly well.  During our 2023 marketing campaign, we’re pleased to announce that nearly $500,000 will be devoted exclusively to our advertising line item representing an all-time record investment for our organization. This unprecedented commitment will allow for us to enhance our message throughout our 14 key markets while also taking our message back into Canada now that pandemic restrictions are beginning to significantly subside.  Digital marketing continues to dominate the tourism landscape, and 2023 will offer a rather significant enhancement to our current efforts through the utilization of more advanced data measurement tools. We already possess the ability to evaluate and react to live campaigns in real time, but thanks to the state-of-the-art tools our new partnerships will be using, we’ll be able to make even quicker decisions in an effort to maximize our digital dollars. These tools will also assist us in refining our target markets even further as we tactically tout our messages as methodically as possible.  Given some of Eagan’s elite amenities, we’ll continue seeking out ways to create and relocate premier events we feel will benefit our entire community. Beginning in 2023, we feel a real opportunity exists to capitalize on the post-pandemic pent up demand for audiences to experience sports and entertainment events like never before. Positioning Eagan as a gateway into this lucrative world will remain a top priority for us.  As we all hear rumblings of a recession, our tried and true Pick Your Package promotion stands ready to boast Eagan’s steady stream of stay and save packages, contests and dining deals to cost-conscientious consumers looking to maximize their travel dollars. We’ll be looking to add new partners into the mix while trying new digital techniques in an effort to brand this highly successful promotion. POSITION INVENTORY Personnel 2020 2021 2022 2023 Hours President & CEO 1 1 1 1 2,080 Sales Director 1 1 1 1 2,080 Tourism Sales Director 1 0 0 0 0 Marketing Manager 1 1 1 1 2,080 Marketing Coordinator 1 1 1 1 2,080 Total 2023 WORK PLAN Activity Routine 1. Generate and fulfill inquiries from leisure, group tour, business, meeting travelers and sports tournament directors. 2. Create/distribute collateral promoting Eagan’s hotels, restaurants, attractions and shopping destinations to target markets. 3. Conduct sales missions aimed at generating increased travel/economic impact for Eagan. 4. Work closely with hospitality partners to continually keep Eagan top of mind in identified market segments. 5. Provide superior customer service to guests interested in the many amenities Eagan has to offer. 2022 2023 Budget Budget INCOME Tax Income 975,000$ 1,170,000$ Interest Income 500 2,000 Explore MN Tourism Coop 17,500 7,500 Misc. Income - 2,500 Total Income 993,000 1,182,000 EXPENSES Personnel Expenses Salaries 280,000 270,000 Health Insurance 25,000 27,000 Payroll Expenses (FICA, etc.) 23,000 24,000 SIMPLE Matching Funds 6,000 7,000 Subtotal 334,000 328,000 Other Expenses Accounting 22,000 23,000 Auto Expenses 500 1,000 Contract Labor 10,000 15,000 Depreciation 12,000 12,500 Donations 500 1,000 Dues/Subscriptions 4,500 6,000 Education/Training 11,000 12,000 Equipment Lease 800 - Equipment Maintenance 5,000 6,500 Insurance 6,000 7,500 Legal Fees - - Meetings 1,000 1,500 Office Supplies/Equipment 4,500 5,000 Rent 36,500 37,500 Telephone 2,500 2,500 Subtotal 116,800 131,000 Marketing Expenses Advertising 380,000 475,000 FAM 5,000 5,500 Fulfillment House Services 6,000 5,500 Postage 10,000 12,000 Promotion 85,000 125,000 Research 3,700 32,000 Telecommunications Services 6,000 6,500 Trade Show 8,000 8,000 Website/Mobile Technology 18,000 28,500 Subtotal 521,700 698,000 Travel & Entertainment Transportation 7,000 8,000 Meals 3,500 4,500 Lodging 10,000 12,500 Subtotal 20,500 25,000 Total Expenses 993,000 1,182,000 Net Income -$ -$ BOD Approved 2023 Budget Eagan Convention & Visitors Bureau 2023 BUDGET PRESENTATION ENJOY EAGAN E agan Hotel Avg. Daily Rates 2020 2021 2022 (through Sept) $76.29 $89.19 $104.66 $93.02 (2019) Eagan Hotel Occupancy 2020 2021 2022 (through Sept) 41%51.3%59.9% 66.5% (2019) Lodging Tax Revenue 2019 $1,110,337 2020 $534,411 2021 $987,340 2022 $1,005,000 Economic Impact Survey Options OPTION #1 General Leisure Travel Economic Impact Study OPTION #2 Special Events Economic Impact Study