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
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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