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07/16/1984 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL EAGAN, MINNESOTA JULY 16, 1984 A special meeting of the Eagan City Council was held on July 16, 1984, at 6:30 p.m. in the City Council chambers of the Eagan Municipal Center Building. Those present were Mayor Blomquist, City Councilmembers Egan, Smith, Thomas and Wachter. Also present were City Administrator Hedges, City Attorney Hauge and Director of Finance VanOverbeke. CONSIDERATION OF TAX INCREMENT FINANCING Mr. Ernie Clark, Paul Eckholm and Marsha Cohodes of Miller & Schroeder Municipals Inc., and also Stan Kehl of Holmes and Graven Law Firm, were present to discuss criteria and the overall philosophy of tax increment financing for multifamily housing projects. Mr. Eckholm stated that tax increment financing is commonly referred to as interest rate reduction and differs substantially from the traditional tax increment financing that applies to commercial and/or industrial projects. Upon the completion of a thorough presentation of tax increment financing for multifamily housing projects, various criteria were considered for the purpose of establishing guidelines to process applications for this method of financing. Several concerns were raised by the City Council and the consultants were asked to prepare a resolution that would contain guidelines for interest rate reduction/tax incre-ment financing of multifamily housing projects and that further consideration of these guidelines would be given at a future City Council meeting. There was no action taken; however, the consultants were directed to prepare a set of guidelines relating to this method of financing. M.B.O. UPDATE The City Administrator presented a status report on the objectives that were adopted in February as a part of the Management by Objectives program. After review and discussion on several of the objectives, the City Administrator was asked to update the City Council later this fall with an additional status report on all the objectives. NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY BUILDING PERMIT REQUEST FOR EAGANDALE INDUSTRIAL PARK The City Administrator stated that Northwestern Mutual Life Insur- ance Company is requesting building permits for three-story office buildings and a restaurant on various lots within Eagandale Center Industrial Park that are zoned within an R&D district. The City Administrator stated that staff is reluctant to issue a building permit without an interpretation of the zoning ordinance. He stated that Subdivision 20 requires that a lot area within an R & D classification must be 40 acres in size; the entire R&D district is not 40 acres. He further indicated that upon review of the ordinance, a restaurant is not a recorded use within R&D zoning. The City Administrator stated that the applicants do meet or exceed all other City ordinances with the proposed development and, there-fore, is asking the City Council whether they agree with the staff's interpretation of the ordinance. After a brief discussion, it was agreed by members of the City Council that a building permit should not SPECIAL CITY COUNCIL MINUTES JULY 16, 1984 PAGE TWO be issued without some type of variance or possible zoning amendment to respect the integrity of the R&D zoning regulations. The City Administrator was instructed to review the City Council's position with the Opus Corporation regarding their proposed development. MINNESOTA JOCKEY-CLUB FINAL SETTLEMENT The City Administrator stated that all in-house costs and out-of- pocket costs were submitted to Mr. Steve Phlaum, representing the Minnesota Jockey Club Inc., for the purpose of finalizing-all outstanding bills related to the horse racing track proposal. He stated that Mr. Phlaum has agreed to all out-of-pocket expenses; however, he is not agreeable to making payment for hours that were billed for actual time expended by the City Administrator. The City Administrator stated that all in-house expenses including his time, as well as the Director of Finance's time and all out-of-pocket expenses during 1983, were reimbursed by Minnesota Jockey Club Inc. He then stated that the hours for time spent by his department are those hours accumulated for the months of January through March of 1984 and total approximately 130 hours. After further discussion on the matter, members of the City Council felt that out-of-pocket expenses were fair and reasonable and, there- fore, a final billing for out-of-pocket expenses totaling $10,972.83 to the Minnesota 'Jockey Club Inc., was recommended. City Councilmember Wachter stated that he would like the time that was spent by the City Administrator included in the bill, stating that this project was exceptional and put an undue burden on the City staff and, therefore, the City should be billing for all expenses incurred including in-house time. After further discussion, a motion was made by City Councilmember Egan, seconded by Councilmember Smith, and with all members voting aye with the exception of City Councilmember Wachter who voted nay, that the Minnesota Jockey Club, Inc., be billed for out-of-pocket expenses totalling $10,972.83 to finalize all expenses that were incurred while the City processed the horse racing track application. The City Administrator reported that with this motion, the City has been reimbursed for -all-out-of-pock-et-expenses since this application was received by the City in-the summer -&f 1983.-- ADJOURNMENT The meeting was adjourned at approximately 10:00 p.m. Dated: July-16, 1984 TLH Cit erk