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11/29/1988 - City Council SpecialSPECIAL CITY COUNCIL MEETING TUESDAY I. ROLL CALL NOVEMBER 29, 1988 7:00 P.M. II. NORTHEAST EAGAN TRANSPORTATION III. COMMUNITY CENTER PROJECT UPDATE IV. OTHER BUSINESS V. ADJOURNMENT MEMO TO: HONORABLE MAYOR & CITY COUNCIIMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: November 23, 1988 SUBJECT: SPECIAL CITY COUNCIL MEETING FOR NOVEMBER 29, 1988 At the November 15, 1988, regular City Council meeting, action was taken to set Tuesday, November 29, 1988, as a special City Council meeting. There are two (2) issues to be discussed that evening and they are as follows: 1) Northeast Eagan Transportation Improvements and Tax Increment Financing Consideration and 2) Community Center Project Update. NORTHEAST EAGAN TRANSPORTATION IMPROVEMENTS AND TIF CONSIDERATION The City's management team including our Fiscal Consultant, Dave MacGillvray, will be present to answer questions and facilitate a general discussion regarding the proposed transportation improvements and, more importantly, the designation of a project area and TIF districts will provide a partial funding source for the improvements. The City Administrator is not planning a formal presentation but would suggest a workshop setting as an opportunity for the Council to ask questions and provide direction regarding the project area and TIF districts. Please refer to the attached informative memo for additional information pertaining to this item and discussion topic. /s/ Thomas L. Hedges City Administrator COMMUNITY CENTER PROJECT UPDATE The City's architectural firm for the Community Center project will be present on November 29 to meet with the Advisory Parks and Recreation Commission and City Council. The purpose of the meeting is to continue with refinement of the Community Center drawings, review the proposed cost of the project and decide on a referendum date. The action motion will be delayed until either the December 6 or December 20 Council meeting. MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: NOVEMBER 23, 1988 SUBJECT: INFORMATIVE SOUTHVIEW CHRISTMAS PARTY As a reminder, mark your calendar for 11:30 a.m., Thursday, December 8, to attend the Northern Dakota County Chamber of Commerce Christmas luncheon to be held at Southview Country Club. Please bring a toy with value between $5 - $10 for ages 1 - 10. Reservations have been made for all but Pam who has a conflict that day. SKYLINE ROAD /SIBLEY HILLS DRIVE UPGRADING ASSESSMENTS Attached is a memo prepared by Joe Early of the City Attorney's office in response to the proposed formula for assessing the Skyline Road /Sibley Hills Drive improvements. The Director of Public Works reviewed this matter and received the proper direction from City Council at the special meeting on November 22. NORTHEAST EAGAN TAX INCREMENT FINANCING The City Administrator has been averaging approximately three (3) meetings per week for the past two (2) weeks with the City's bond council, city attorney, fiscal consultant and department heads including the Director of Finance, Director of Community Development and Public Works Director to discuss and formulate a project area and tax increment district for the purpose of funding a portion of transportation improvements that are required in northeast Eagan to allow corporate expansion for Northwest Airlines. Given the scope of this project and the fast track that is required in order to meet the building expansion time line proposed by Cray Research for purposes of capturing their increment and present an overall financial game plan to the legislature and to secure funding from MnDOT and the appropriate federal agencies, action will be required by the City Council at the December 6 meeting. The City Administrator would like to spend approximately one hour at the work session on November 29 to brief the City Council on the progress to date and of the type of action that would be required to proceed with the funding mechanism that was discussed at the October 27 workshop session. The City Administrator has asked Dave MacGillivray, the City's fiscal consultant, to prepare a memo that provides background information that will hopefully generate the type of questions and discussion needed at the November 29 special council meeting. A copy of that memo is attached for your review. POLICE CHIEF APPLICATIONS The last day for receiving applications for Chief of Police was Friday, November 18. The City Administrator hopes to complete his review of all applications by November 30 and then schedule a day for the screening of 8 - 10 candidates sometime in early to mid - December. Following the first interviews, a final interview to present three or four candidates to the City Council will be scheduled either prior to or immediately following the Christmas holiday. COMMUNITY CENTER PROJECT The City Administrator and Director of Parks and Recreation are beginning the public relations awareness for the community center project. The first of two television tapings took place Monday evening, November 21. The Director of Parks and Recreation, City Administrator and Chairman of the Advisory Parks and Recreation Commission, Dick Carroll, were interviewed by Dan Aberg, Executive Director of the Chamber of Commerce who served as moderator. This half hour Eagan Update will discuss progress to date including the Decision Resources survey, petition by the residents, the selection of an architect, a series of slides that show comparable facilities and the floor plan as it appears today. This half hour special will run a number of times between Thanksgiving and early January. The second taping will occur in early January that will explain the financing and date for the referendum. The City Administrator is planning various press releases throughout December, January and early February regarding the project. A special newsletter will be prepared and distributed to all households in late January or early February explaining the project. This newsletter will be reviewed by the City Council prior to its final draft and distribution. PRELIMINARY PLAT /PARR CENTER The Advisory Planning Commission met on Tuesday, November 22, to consider a Comprehensive Guide Plan amendment, rezoning, preliminary plat and conditional use permit for the Park Center Addition project proposed by the Federal Land Company. The Comp Guide Plan amendment and rezoning were denied 6 -1. This item will appear before the City Council at the December 20 meeting. The Director of Public Works would like the Council to be informed that the Dakota County Survey Department is asking that the City and Council participate in a study to determine how many access drives should be allowed on Cliff Road between 35E and the Burnsville city limits at approximately Mary, Mother of the Church. Please refer to the attached letter. The Director of Public Works will proceed with this study unless advised otherwise by the Council. BLACKHAWK DRIVE INTERSECTION AT CLIFF LAKE DRIVE The City's consulting transportation engineers, SEH, have reviewed the installation of a stop sign at Blackhawk Drive and Cliff Lake Drive. For their study, refer to the attached letter dated November 18 and enclosed for your review. THOMAS LAKE MERCHANTS At the last City Council meeting, a letter was distributed to each member of the Council by the Thomas Lake Merchants Association. The letter raised a number of concerns about the completion of improvements east of the Center and Cliff Road and the future construction of Cliff Road immediately in front of the Center. Their concerns were about the timing and length of construction as it pertains to the impact on their business. The Director of Public Works along with representatives from the County Highway Department attended the meeting this past Monday, November 21, and after listening to numerous concerns agreed to address the concerns and have a follow -up meeting the evening of December 12, 1989. A later update will be provided on this matter. /s/ Thomas L. Hedges City Administrator TO: Tom Hedges, Eagan City Administrator Tom Colbert, Director of Public Works FROM: Joseph P. Earley DATE: November 22, 1988 MEMORANDUM RE: Project 543 Skyline Road /Sibley Hills Drive Upgrading Assessments Our File No.: 206 -5316 The City of Eagan has concluded that at some point in the near future, both Sibley Hills Drive and Skyline Road must be upgraded in order to handle the increased traffic precipitated by the development of the parcels surrounding these two roads. Due to the unique nature of this area (i.e., large undeveloped lots fronting both roadways) , the City has been concerned with finding a fair and equitable method of assessing for the upgrade of Sibley Hills Drive and Skyline Road. The Public Works Department has proposed a formula for assessing for these improvements. The formula would assess half the costs on a front foot basis and the other half on an area basis. The area assessment would be subject to a reduction the further the lot is from the center of the improvement, which is designated as Auge Road. This reduction is referred to as the distance to arterial factor. The question before us is whether or not this assessment formula would meet the tests set out by the Minnesota courts in determining whether or not a special assessment is valid. In Carlson - Lange Realty Company v. City of Rindom, 307 Minn. 368, 369, 240 N.W.2d 517, 519, (1976), the Minnesota Supreme Court reviewed the limitations on the power of special assessment as follows: , a) the land must receive a special benefit from the improvement being constructed; b) the assessment must be uniform upon the same class of property; and c) the assessment may not exceed the special benefit... Special benefit is measured by the increase in the market value of the land owing to the improvement." If the Sibley Hills /Skyline Road assessment is allocated on a front footage /area basis, it is necessary that similar lots be assessed similarly. In the case of In Re: Third Street Wi.clenina, 240 N.W. 355, (1932) , the City of St. Paul assessed for a street improvement on an area basis. The Supreme Court found the assessment unlawful because lots of equal size and similar location were assessed in different amounts merely because one of the lots may have been split among several owners. The Court stated that "It has never been thought when two tracts are alike in every respect relevant to the improvement, that the two or three or more owners of one must in consequence of the division of ownership and for no other reason, together bear an assessment grossly in excess of that of a single owner of the other. That is precisely the kind of inequality and artificial discrimination prohibited by the constitutional demand for uniformity in taxation." IL. at 359. It is our opinion that the use of the distance to arterial factor in calculating the assessment amount would result in just such a non- uniform assessment for similar pieces of property. Two pieces of property, both equal in size and both fronting on the improved streets, would be assessed different amounts depending on whether they were closer or farther from Auge Road. Since the City makes no extra expenditures for the road abutting an interior lot than they do for the road abutting an exterior lot, this distance to arterial classification would probably be seen as arbitrary by the courts. As I discussed with Tom Colbert, a possible solution to this problem would be to eliminate the distance to arterial factor and assess half of the costs on a front foot basis and the other half on an area basis applying the formulas equally to all lots. Even if the City allocates the assessments to like lots in a uniform manner, it must still be prepared to prove benefit to the lots included, especially those lots not abutting the roadway. All lots included in the proposed benefit area should be reasonably expected to show an increase in market value at least as great as the assessment levied on that particular lot. "The test of the validity of a special assessment is whether the improvement for which the assessment was levied has increased the market value of the property against which the assessment operates in at least the amount of the assessment." • • - fl - - • •. •11" • • , • t z, 257 N.W.2d 546 (1977), The determination of benefits and apportionment of assessments for local improvements is a legislative function and if the question of benefits and apportionment is a matter on which reasonable men may differ, the determination by the legislative body or city council must be sustained. See Ouality Hopes Incorporated v.. Vi1L ge of New Brighton, 289 Minn. 274, 183 N.W.2d 555 (1971). However, the presumption that the City has set special assessments legally may be overcome by introducing competent evidence that the assessment is greater than the increase in market value of the properties due to the improvement. • r - - r • - P- , , supra, p. 518. JPE /dj k -2- SPRINGSTED r, PUBLIC FINANCE ADVISORS 85 East Seventh Place,Suite 100 Saint Paul,Minnesota 55101 2143 612 223.3000 Fax:612 223.3002 November 23, 1988 Mr. Thomas Hedges, Administrator Eagan City Hall 3830 Pilot Knob Road Eagan, MN 55122 RE: Northeast Eagan (NEE) Tax Increase District Dear Mr. Hedges: We have prepared per your request this summary of the status of the Northeast Eagan Tax Increment District. As you know, the City's representatives have been meeting on a weekly basis to discuss and evaluate various aspects of this project. In addition to these meetings, the City has met with representatives of Northwest Airlines (NWA), Cray Research, Short-Elliott Hendrickson, and the professional staff of the Cities of Mendota Heights and Inver Grove Heights. The overall results of these meetings have been very constructive with definite progress in a number of areas, as well as some revelations concerning the pace of new development in the area. There are nine basic topics which cover the principal discussion points to date. I. Predevelopment Agreement: The City has required that NWA cover all of the City's costs to evaluate this project prior to any commitment to form a TIF District. These costs could include, but are not limited to, City staff time, engineering studies, fiscal advisor, attorney, and preparing the necessary documents. This agreement has a maximum amount of $50,000 which would reimburse the City if for any reason the project terminates prior to forming the TIF District. 2. Project Area: As part of the process the City must define a project area within which TIF funds can be spent. This is not a TIF District which generates increment income, but rather a larger area wherein a relationship exists between the new development occurring within the TIF District and improvements which are required to accommodate such new development. Based on preliminary discussions with Short-Elliott Hendrickson, the Northeast Eagan area has a number of highway and intersection improvements which will be impacted by the new development occurring in the area. Enclosed is a proposed "Project Area" map. In defining this area we have attempted to only include properties for which a direct link can be made between the new development and future improvements. Indiana Office: Wisconsin Office: 251 North Illinois Street,Suite 1510 500 Elm Grove Road,Suite 101 Indianapolis,Indiana 46204.1942 Elm Grove,Wisconsin 53122.0037 317 237 3636 414.782.8222 Fax:317 237 3639 Fax:414.782 2904 City of Eagan November 23, 1988 Page 2 3. Engineering Estimates: Short-Elliott Hendrickson is completing a study of future highway and intersection improvements which would be necessary given the estimates of new development occurring in and around the NWA and Cray parcels. The study is scheduled for completion in early January, with some preliminary cost estimates in early December. This schedule makes it difficult to provide accurate projections of the amount of TIF funding necessary for the project. At this point we are striving to designate potential revenue sources so that funding opportunities continue to exist until such time as more cost information is available. 4. Cray Research Development: One of the unexpected results of our meetings has been the disclosure by Cray of their development schedule. Before December 31 Cray is expected to obtain a building permit for its first structure of 60,000 square feet. During the first six months of 1989 they are estimating that construction will begin on an additional 450,000 square feet. The new TIF law prohibits the inclusion of new development in a TIF district if the building permit has been issued prior to adoption of the district. In our effort to preserve funding options, we have started actions to form a TIF district to capture the Cray development occurring in 1989. 5. NWA Development: NWA has stated their intention is to begin construction on a 250,000 square-foot building at some point in 1989. If possible we are attempting to include this NWA Development with the Cray Development. 6. Meetings with Other Cities: To date we have met with the city managers of Mendota Heights and Inver Grove Heights. Mendota Heights has rezoned the northwest quadrant of Highway 494 and Hwy 149 to commercial-industrial. Their northeast quadrant is zoned residential, and they expressed concern over improvements constructed in the northeast quadrant involving this residential area. Inver Grove Heights favors studying improvements for an intersection of Highway 55 and Highway 35E and/or Highway 494. 7. Documents: At this point we are working on three documents: Predevelopment Agreement, Development District Plan (to adopt Project Area), and the TIF Plan (for Cray and NWA). Our schedule anticipates providing the City Council with the Development District and TIF plans for its first meeting in December. 8. Metro Significance Study: Based on the fact that any intersection improvements on Highway 494 will impact on more than one municipality, the recommendation is for the City to initiate a metro significance study. Our discussion on this recommendation centered on demonstrating the City's affirmative position in calling for this review, rather than responding to request from another party. 9. Calendar: As has been demonstrated here, a number of events have occurred which have affected our initial schedule. Enclosed is the current calendar for events anticipated through mid-January. This calendar has been extended somewhat to accommodate the TIF statute's procedure requirements. The objective has been and still is to have on record a City commitment to action regarding TIF for this project, so that if there are changes to the TIF law City of Eagan November 23, 1988 Page 3 which would affect the project, the City would be permitted to continue on with the project. We trust this information provides the City with a basic understanding of the status of this project. We are certainly available to expand upon these points, as well as address any other areas of interest. Respectfully, '-------Drr•W--- ...-----(10(..-)C-- ,Wi()41.42f-A-1 David N. MacGillivray Vice President mjt . . . . , • • . . ^ • . . . ` . •, . . • . • . . , . • •.'' ! ' ' • ' . ^ •.. . . . I. ' ` . .` . . ` ~~ � . . • . . d=iii , MI DA , r -0 zli ni, ,.,,,„ • .771.• 414 4,,, Effizalli. . I -4 >PI * , 4,_ ..... .... , .. . . ... .. . . . t... to, .,,,,,,t,,,,t,4 -1,.„..r,- -..„..,,11, Nammil..,,L41",,410 ........ .72.. , •, -.. : • p ,,..,.......3 '.riikt t„, 0•.g.t.V.'..':;:•:-..t . 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'i'• : k' ? •''• • • • )''' ''47 • . • VII i • . \•S , • • ( ' % 4 ' l•,I ,J\ ° • ' CALENDAR As of 11-23-88 (Including an overall development district and tax increment financing district) . 11-08-88 Tax increment financing approved in concept for Northeast Eagan by the Economic Development Commission. 12-06-88 a) Receive development district plan and schedule a public hearing for the development district plan. b) Receive Northeast Eagan Tax Increment Financing District #1 plan and schedule a public hearing for the TIF plan. 12-07-88- City mails Northeast Eagan TIF District #1 plan to 12-15-88 Dakota County and affected school districts. 12-15-88 City publishes notices in legal newspaper for a) development district plan and b) Northeast Eagan TIF District #1 plan (publication deadline is noon 12-13- 88) . 12-27-88 Planning Commission reviews a) development district plan and b) Northeast Eagan TIF District #1 plan (review only, no public hearing) . 01-17-89 a) Public hearing for development district- development district is established. b) Public hearing for Northeast Eagan TIF District #1 - TIF district is established. ■• ■ DAKOTA COUNTY GARY H. STEVENSON, R.L.S. COUNTY SURVEYOR SURVEY DEPARTMENT (612) 4 31-1153 4P�o�N Cot�t 7300 WEST 147th STREET, SUITE #300 APPLE VALLEY, MINNESOTA 55124 k NNESO November 3 , 1988 Thomas Colbert, Public Works Director City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 RE: PARK CENTER Dear Mr. Colbert: The Dakota County Plat Commission met on October 31 , 1988 , to consider the preliminary plat of PARK CENTER. Said plat is adjacent to C.S.A.H. NO. 32 and is, therefore, subject to the Dakota County Contiguous Plat Ordinance. This development will have significant impacts on C.S.A.H. NO. 32 and the adjacent driveways and city streets. This section of C.S.A.H. NO. 32 is not in the 5 year CIP, however, preliminary traffic s±udies indicate that the road will have to be built in the future as a 6 lane divided highway. County right of way guidelines for a 6 land divided highway require 100 feet of half right of way. The two access drives proposed do not meet the County spacing guidelines for the existing road. The Plat Commission would agree that this site could need access onto C.S.A.H: NO. 32. Due to the frontage length and proximity to existing streets, it may be desirous for access to be provided by development of a city street. For a divided highway, such as should probably be considered by the County... nd City for this segment, the County Plat Commission would recommend a full access to a public street at 1/4 mile spacing (near the west end of the property) and a right in-right o at+ accesa— a—a.. public street at 1/8 mile spacing. This prospect would have ramifications on the access allowed at Scott Trail and Cliff Drive. It also seems appropriate to review the existing driveways on the south side of Cliff Road with respect to development of a future public street and the location of median openings. 1 , • + . $ a:: AN EQUAL OPPORTUNITY EMPLOYER The Plat Commission believes that the City and County at this time should evaluate these issues in conjunction with approval of the proposed development. The Plat Commission proposes to jointly participate in a study of this segment to develop a project to reconstruct this roadway. If recommendation from a study can be approved by both the City and County, the Plat Commission will recommend approval of a plat consistent with those recommendations. Sincerely yours, //-40%47P— Gary H. Stevenson Peter Sorenson Dakota County Surveyor Traffic Engineer Plat Commission Secretary cc: Dale Runkle, City Planner Gary J. Erickson, Physical Development Director David Everds, County Engineer Martin Colon GHS:vf „,-50 ENGINEERS I ARCHITECTS I PLANNERS 222 EAST LITTLE CANADA ROAD,ST PAUL,MINNESOTA 55117 612 484-0272 November 18, 1988 RE: CLIFF LAKE DRIVE BLACK HAWK DRIVE INTERSECTION TRAFFIC CONTROLS SEH FILE NO. 88168.01 Mr. Tom Colbert Director of Public Works City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 Dear Tom: As part of our study and plan preparation for Cliff Lake Road, we determined the type of traffic controls that would be necessary at various intersections. The signing was to be included as part of the Cliff Lake Drive plans. This was later modified so that the Contractor made provisions for the signs and signs were installed by the City of Eagan based on our initial sign layout. Under full development of Phase 1 and Phase 2 of Cliff Lake Plaza, we anticipated the potential need for traffic signal at the intersection of Black Hawk Drive and Cliff Lake Drive. However we felt it best to provide 4-way stop sign control with ultimate design to provide for traffic signals. The road plan provided for conduit and handholes for a future traffic signal. Traffic counts could be made with the completion of the Phase 1 development which would assist in the determination of the scheduling of the installation of the traffic signal. It was anticipated that the total generation of traffic just from Cub, Target, and the associated shops would result in 255 vehicles approaching the intersection of Black Hawk Drive on Cliff Lake Drive in the p.m. peak hour. In addition, we anticipated that some traffic might divert to Black Hawk Drive to reach Cliff Road if there were any congestion at the Cliff Lake Drive and Cliff Road intersection. These volumes indicated the necessity of providing a 4-way stop control at the intersection. SHORT ELLIOTT Si PAUL, CHIPPEWA FALLS, HENDRICKSON INC. MINNESOTA WISCONSIN Mr. Tom Colbert November 18, 1988 Page #2 The 4-way stop signs were installed prior to the opening of the Cub Food store. Cub Food by itself generates approximately one- third of the total traffic anticipated from the development. When the Target store opens, we anticipate additional traffic will utilize the Black Hawk Drive intersection. We also anticipate that motorists eventually will learn of the Black Hawk Drive connection and with the opening of Target, there will be a continuous growth of traffic. Currently, the traffic volumes on the north portion of Cliff Lake Drive are relatively low. This raises questions as to the validity of the 4-way stop sign control installed at the Black Hawk Drive intersection. However, we anticipate that the volume of traffic will continue to increase as more motorists discover that it is an alternate route. The opening of Target will solidify the decision to install the stop signs. It was felt that installation of the stop sign concurrent with the opening of Cliff Lake Drive and the opening of Cub Food would have a better impact on drivers than if the road were opened and the stop signs were added later. We therefore believe that the stop sign installation is justified. I hope this provides the information you needed to answer questions from the general public. If you need any additional information, please feel free to call. Sincerely, —A42 "7"?'(A/ Glen Van Wormer Manager Transportation Engineering Department GVW/cmb MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota November 29, 1988 A special meeting of the Eagan City Council was held on Tuesday, November 29, 1988, at 7:00 p.m. at the Eagan Municipal Center Building. Present were Mayor Ellison and City Councilmembers Egan, Gustafson and Wachter. City Councilmember McCrea was absent. Also present were Director of Finance VanOverbeke, Director of Community Development Runkle, Director of Public Works Colbert, City Attorney Sheldon and City Administrator Hedges. Also present were the City's consultants, Glen VanWormer of SEH and Dave MacGillivray of Springsted, Inc. NORTHEAST EAGAN TAX INCREMENT PROJECT City Administrator Hedges briefly reviewed the research and work the City staff and City's consultants have performed since the October 27 special workshop session concerning the Northeast Eagan Tax Increment project. He stated that in addition to numerous meetings the City has met with representatives of Northwest Airlines, Cray Research, Short Elliott Hendrickson and the professional staff of the cities of Mendota Heights and Inver Grove Heights. The City Administrator and the City's fiscal consultant, Dave MacGillivray of Springsted, Inc., briefly reviewed the topics which have covered the principal discussion points to date including the predevelopment agreement requiring Northwest Airlines to reimburse the City for all costs up to $50,000 in forming a TIF district, a review of the project area, and an update on Cray Research's development. Other issues reviewed by staff included, the status of Engineering estimates for proposed highway and intersection improvements, the reaction regarding meetings with the cities of Mendota Heights and Inver Grove Heights in the review of certain documents including a predevelopment agreement, development district plan and TIF plan. Director of Finance VanOverbeke presented a calendar which lists the various events that are required in order to accommodate the TIF statutes procedure requirements by mid-January. City Councilmembers discussed the proposed development district asking several questions of the consulting engineer whether the corporate expansion proposed by Northwest Airlines will generate transportation improvements throughout the entire project area. There were also questions raised abc;t the proposed tax increment financing districts in direct relationship to the .mount of bonds that could be financed for the proposed road improvements. After further discussion, Mayor Ellison directed that this item be placed on the December 6 regular City Council agenda to consider setting a public hearing date to consider a development area and tax increment financing district for the purpose of financing off-site improvements to allow for industrial and corporate expansion in northeast Eagan. COMMUNITY CENTER PROJECT Mayor Ellison convened a special City Council meeting by welcoming the Advisory Parks & Recreation Commission members including its chairperson, Dick Special Minutes November 29, 1988 Carroll, Michele Swanson, Sandra Masin, Wayne Sames, JoAnn Alt, George Kubik, Bob Porter and their alternate Ted Billy for the purpose of discussing the community center project. Director of Parks and Recreation Vraa introduced the City's architect, Bryce Hastings of Hastings and Chivetta, who presented the final drawings for the proposed community center. Mr. Hastings reviewed the drawings in detail stating that all changes as suggested by the Advisory Parks and Recreation Commission, Reaction Committee, staff and City Council have been incorporated into the final drawings. Following a brief discussion, it was generally agreed by all members present that Mr. Hastings can proceed with final architectural renderings and detailed drawings for the purpose of preparing for a bond referendum. The Director of Parks and Recreation reviewed the cost breakdown of the proposed community center project by categories that included off-site development, building construction costs, equipment furnishings, architectural fees, miscellaneous costs and the related. He stated that the total cost is estimated at $9,954,791. The City Administrator Hedges reported on a revenue option that is proposed to reduce the referendum amount by $2,000,000. He stated that the City's consolidated debt fund has approximately $6.5 million of unallocated funds to be used for a community purpose. He stated that a portion of those dollars should be retained and used for any bond funds that may generate a positive balance in the future for future City Hall expansion. It was the opinion of the City Administrator and Director of Finance that $2,000,000 would be available for the Community Center project. City Councilmembers discussed the costs as presented and generally concurred with the financing plan as proposed. City Councilmembers and Advisory Parks and Recreation Commission members discussed the necessity for a good marketing plan that presents a factual representation of the community center project to the community through presentations to service organizations, homeowners associations and City-wide newsletters to all households. The Director of Parks and Recreation also explained the various recreational activities that can be offered with the community center project. City Councilmember Egan raised a valid question concerning insurance liability asking if the architect had fully analyzed the proposed building uses from an insurance perspective. Mr. Hastings stated that a natatorium is the most concerning as an insurance liability; however, the diving boards were eliminated, the depth and layout of the pool have been analyzed by the State of Minnesota and swimming consultant to mitigate potential liability. City Councilmember Wachter raised questions about energy efficiency for the proposed building which were adequately addressed by the architect, Mr. Hastings. There were also questions raised about the pro};ised operating expenses for the proposed community center and the Director of Parks and Recreation responded by stating that user charges will be designed to fund the operating expenses of the facility. Park Commission member Carroll suggested the philosophy statement that emphasizes family use of the facility. After a lengthy discussion finalizing the project, Mayor Ellison asked for a date on which the referendum could be set for consideration of the community center project. City Administrator Hedges stated that February 14 is an achievable date for a referendum and also allows the architect to proceed in a timely fashion for the preparation of specifications and bidding with a targeted opening of the center in the fall of 1990 if the referendum is successful. After a Special Minutes November 29, 1988 brief discussion, there was a general concurrence by both the City Council and Advisory Parks and Recreation Commission members that February 14 be finalized as the date for the community center referendum at the December 6 Council meeting. OTH BUSINESS City Administrator Hedges received direction on Police Dispatcher negotiations. There being no further business, the meeting was adjourned at 10:15 p.m. TLH November 29, 1988 Date City rk NORTHWEST TAX INCREMENT PROGRESS REPORT #1 MEETING DATE: November 1, 1988 PARTICIPANTS: Tom Hedges Tom Colbert Jon Hohenstein Gene VanOverbeke Dave MacGillivray Brenda Kruger PURPOSE: Continue Studying Feasibility of TIF Project Outline Immediate Course of Action 9 Discussion Items: 1. What is the most appropriate Project Area (Development District) . Should one large district be created including two other potential problem areas or should one, two or three smaller districts be created? 2. What is the best approach to provide the proper basis to seek State/Federal assistance? 3 . At what point would the project(s) most likely be visited if the State changes the tax increment law. 4. What is the timing on proposed building and how is the property currently platted? 5. Who, if anyone, should be asked to guarantee City costs? 6. It is probably appropriate to have the district pay its own fiscal disparities. Action Items: Responsibility. 1. Write a letter outlining the various Dave options as to the development district with no specific recommendations. 2. Request a guarantee of $50, 000 in costs Dave from Northwest - no letter of credit necessary. 3 . Review with LMC the expectations for action Dave on TIF in the State Legislature. 4. Request information from Northwest repre- Dave sentatives as to specific development proposals (buildings and timing) . Start with Don Diddams) . 5. Ask Steve Rosholt to begin review of inter- Dave jurisdictional questions as to construction, project area and TIF district. 6. Put together a proposed calendar with a mid- City January deadline including the Economic Development and Planning Commissions as well as the City Council. 7. Review development configuration and proposed City construction for potential increment. (Specifically Northwest and Cray) . 8. Request assessment figures for the last five City years from the County Assessor. Next Meeting: November 7, 1988 1-3 :00 p.m. Eagan Municipal Center NORTHWEST NORTHWEST AIRLINES,INC.•WORLD HEADQUARTERS•2700 LONE OAK PARKWAY•EAGAN,MINNESOTA MAILING ADDRESS:MINNEAPOLIS/ST.PAUL INTERNATIONAL AIRPORT ST PAUL,MINNESOTA 55111•USA November 1 , 1988 Mayor Vic Ellison City Hall 3830 Pilot Knob Road Eagan, Minnesota 55122 Dear Mayor Ellison: We appreciated the opportunity last Thursday evening to present our plans for expanding our headquarters in Eagan and to discuss the proposal to use tax increment financing to help pay for some of the highway improvements that will be needed to make that expansion possible. I want to thank you, the City Council, and other representatives from the City for your consideration and effort on this project. We believe that tax increment financing offers the City an important opportunity to improve its highway system, and at the same time allow the expansion of our corporate headquarters within the City. I was of course pleased and encouraged by the City's positive response. Our staff and consultants will remain available to assist in whatever way we can as we move through this process during the coming months. Once again thank you for the opportunity to meet with Eagan's city officials and staff. We look forward to working with you on this project of importance to the City and Northwest Airlines. Very truly yours, Timothy R. Thornton General Counsel cc: T. Hedges S. Wheeler