11/06/1995 - City Council Special
MINUTES OF A SPECIAL MEETING OF THE
EAGAN CITY COUNCIL
Eagan, Minnesota
November 6, 1995
A special meeting of the Eagan City Council was held on Monday, November 6, 1995 at 5:00 p.m. at the
Eagan Municipal Center. Present were Mayor Egan and Councilmembers Awada, Wachter, Masin and Hunter. Also
present were City Administrator Tom Hedges, Director of Public Works Tom Colbert, Community Development
Director Peggy Reichert, Park & Recreation Director Ken Vraa, Finance Director Gene VanOverbeke and Cable
Coordinator Mike Reardon. _
FISCAL IMPACT CONSIDERATION ON INDUSTRIAL DEVELOPMENT
Community Development Director Reichert reviewed the vacant areas north of Yankee Doodle Road, noting
that there is only one industrial zone in Eagan. She pointed out and reviewed the locations of the current truck
terminals and distribution centers in Eagan. She noted that Director of Public Works Colbert recently attended a
meeting with the Minnesota Department of Transportation, and Eagan was shown to be one of the largest trucking
areas in the metro area. The number of trucking firms has escalated during the past couple of years and staff has
felt that a fiscal impact study to examine property tax Implications on Industrial development would guide the
direction for the type of Industrial development that would be desirable for the community.
Administrator Hedges reviewed some of the policy issues to be considered, such as whether the City should
allow an appropriate absorption rate for industrial development or whether development should be market driven
with less concern for land use compatibility; the property tax consequences of removing 160 acres of Industrial
property for public purpose; and the property tax impact and land use consequences of changing Industrially zoned
property to residential. He reviewed a meeting he had with the City of Woodbury who did a comprehensive fiscal
Impact study to determine how their community should build out by the year 2000 within the MUSA line and various
assumptions for developing outside their MUSA. They also examined the associated costs for certain land uses in
correlation with operating costs.
Dave MacGillivray, of Springsted, reviewed the financial considerations of development, comparing other
similar cities within the 1-494/1-694 ring. He reviewed comparisons of commercial/Industrial property and the credit
ratings of the various cities. In making the comparison, he noted that Eagan is not deficient in commercial/industrial
property. He reviewed a table of taxes per acre for residential and non-residential property. Discussion followed
concerning the figures and how the concentration of trucking and distribution companies will affect the future of
Eagan. Counciimember Hunter stated he feels the city should encourage more offices. - Administrator Hedges noted
that other Impacts trucking and distribution companies will have is wear and tear on the roads, and the entire
transportation system. Director of Public Works Colbert concurred, noting that large trucks affect the deterioration
of the roadways and he is concerned about the impact on capacity for Yankee Doodle Road and Lone Oak Road.
There are also operational characteristics associated with trucks, such as wide turning movements, and increased
time for acceleration and deceleration. He also has a concern about having a trucking company next to the Opus
retail project, and the mtx of traffic that will result in that area.
Administrator Hedges noted that the city's Image is another consideration. The Council will need to discuss
the Issue of conditional use permits for outside storage. Councilmember Masin asked whether the city gets enough
back from what trucking companies pay in fees. Director of Public Works Colbert noted that the only rebate Eagan
gets is through distribution of gas tax, which is very little. The motor vehicle excise tax goes to the state.
Councilmember Awada noted that the trucks are using mainly county roads and federal highways, so the Impact
Isn't that great. Director of Public Works Colbert noted that it Isn't as much a financial Impact as it is a capacity
Issue.
Community Development Director Reichert noted that it Is the Council's future incremental decisions that
will affect how the remaining land develops. Mayor Egan asked whether the Council can Impose conditions on the
land next to the Opus project. Community Development Director Reichert suggested the Council could discourage
conditional use permits for outdoor storage in that area. Counciimember Wachter concurred. He feels Eagan has
enough trucking companies. Counciimember Awada suggested that the city not change any of its ordinances, but
EAGAN SPECIAL CITY COUNCIL MINUTES; NOVEMBER 6, 1995
PAGE 2
just not allow outdoor storage In certain areas. Councilmember Hunter concurred. Community Development
Director Reichert noted that it should be a policy in the Comprehensive Plan. Councilmember Wachter suggested
the Council go on record with that decision.
Community Development Director Reichert reviewed the possibility of creating a new industrial classification.
Mayor Egan indicated he supports geographical classifications for Image and capacity reasons.
CABLE COMMISSION RECOMMENDATION/PASS THROUGH OF PEG ACCESS FEE
Counclimember Awada asked what the city is doing about the possible breakup of the cable monopoly.
She feels the city needs a backup in the event that happens. She suggested cities get together and have their own
system In place. Cable Coordinator Reardon Indicated the Cable Commission is looking at that and it would be
good to discuss it at the joint meeting of the Cable Commission and City Council.
Councilmember Hunter noted that It appears the cable company could have-been charging this fee all along.
Cable Coordinator Reardon responded that they could have charged it until rate regulation came Into place.
Discussion followed concerning the City putting in its own fiber optics. Councilmember Hunter noted that that is
viewed by Moody's as totally risky, and the city's credit rating would reflect that. Councilmember Awada reiterated
her concern about ending up with no system, no money to fund ft. and no way to get one.
The meeting adjourned at 6:30 p.m. to the regular Council meeting.
DLP
November 6, 1995
Date City er