03/06/2000 - City Council Special
00070
MINUTES OF A
SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
March 6, 2000
A special meeting of the Eagan City Council was held on Monday, March 6, 2000 at
4:45 p.m. at the Municipal Center. Present were Mayor Awada and Council members
Blomquist, Carlson and Masin. Councilmember Bakken was absent on military duty. Also
present were City Administrator Hedges, City Attorney Dougherty, Director of Finance
VanOverbeke, Director of Public Works Colbert, Assistant City Administrator Verbrugge and
Senior Planner Ridley.
AGENDA
Councilmember Carlson moved, Council member Blomquist seconded the
motion to approve the agenda as presented. All members voted aye.
VISITORS TO BE HEARD
Mayor Awada asked if any member of the audience wished to address the Council
regarding matters not on the agenda. There were no visitors to be heard.
VILLAGE PLAZA REDEVELOPMENT CONCEPT DISCUSSION
(CedarffH 13)
City Administrator Hedges introduced the Village Plaza Redevelopment Concept
discussion and provided background regarding the Cedar Avenue and Highway 13
Redevelopment Task Force. He further stated that, as directed by the City Council, Assistant
City Administrator Jamie Verbrugge made presentations before the Advisory Planning
Commission, the Advisory Parks and Recreation Commission, the Airport Relations
Commission, and the Economic Development Commission to explain the recommendations
contained within the Village Plaza Concept Report. City Administrator Hedges discussed the
format for the Village Plaza discussion and introduced the City's Planning Consultant Greg
Ingraham, City Attorney Mike Dougherty, and Financial Advisory Dave MacGillivray of
Springsted. He stated that each of these advisors would be presenting on various aspects of
the implementation steps that would be necessary to move forward with any proposed
redevelopment.
Planning Consultant Greg Ingraham said that he was going to speak more to the
redevelopment in general rather than the specifics of the Village Plaza Concept. He talked
about the ingredients of success in redevelopment and stated that the big picture framework
for land uses in the redevelopment district is created by the City. He further stated that design
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March 6, 2000
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guidelines should be established because the quality of the public realm, for example;
streetscapes and open spaces, influences the quality of the architecture. Mr. Ingraham also
discussed the need to have a long term financing plan. He stated that the public typically
assists with land acquisition, as well as relocation and infrastructure improvements. He stated
that the commitment of the City to the redevelopment process will influence the level of
interest that a developer will show for a project. Mr. Ingraham also discussed the notion of
entrepreneurship, which would mean a partnering of the public sector with the private sector
to establish a vision for the redevelopment. He stated that this entrepreneurship will help to
develop creative and capable partners. Mr. Ingraham then discussed the issue of timelines for
the redevelopment district and the need to be patient and consistent. Redevelopment districts
are long term endeavors, he said, and seven to ten years is not unusual for a project area.
Planning Consultant Ingraham then went on to discuss the characteristics of a
successful redevelopment. He stated that he could not emphasize enough the need for a
shared vision and support from the City Council, staff, business community and the public.
He sighted, as an example, his work in St. Louis Park where a week long charette process was
used to involve the community and create support. He further stated that one of the
difficulties of redevelopment is dealing with change and the expectation that stakeholders
may have for a place to remain the same as it always has been. He said the public debate
typically focuses on the negatives and not the positives of redevelopment. He said it was
important to share the vision and the reason for revitalization efforts. Mr. Ingraham also
discussed the ability to balance property owners' interests with the goals of revitalization. He
stated that the City must recognize that some uses will be relocated or eliminated, and that
these acquisitions must be handled professionally and fairly. He said the City also must have
the ability to condemn, even if the need never materialized.
Finally, Consultant Ingraham continued his discussion of characteristics of a
successful redevelopment by stressing that consistent communications are necessary to keep
everyone informed throughout the process. The worst thing for businesses, he said, is being
surprised. Mr. Ingraham went on to discuss the need to have a redevelopment plan with legal
standing. He said that it is important to include design guidelines to get conformance with the
vision when amending the Comprehensive Guide Plan and zoning status. Regarding a
financing plan, Mr. Ingraham stated that the long term benefits must justify the costs of any
redevelopment. He stated that it was important to stay true to the vision and when dealing
with interim uses, remodeling and expansion, and other development proposals, that
suitability based on the design guidelines must be reviewed on a case by case basis. Mr.
Ingraham stated that density and intensity is a requirement of success. He also stated that the
City needs to recognize that traffic equals economic vitality. A balance in traffic distribution
can be achieved with a mix of land uses, but low traffic is synonymous with economic failure.
He discussed the need to have an affective first phase project to create excitement and
enthusiasm for subsequent phases.
Planning Consultant Ingraham concluded by discussing the alternatives to plan
redevelopment which include a stable or declining real estate valuation, remodeling of
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March 6, 2000
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existing businesses, redevelopment of unplanned use, and that redevelopment needs simply
will not go away. City Attorney Mike Dougherty was present to discuss land use issues as
part of any redevelopment. He stated the first step was to address the Comprehensive Guide
Plan that currently exists. There are six different classifications in the project area, he stated,
none of which really match the uses in the area. The update of the Comprehensive Guide
Plan also does not match the uses. City Attorney Dougherty stated that a special area
designation would require zoning within nine months according to state statute. He stated
that, in addition to the mismatched guide plan classifications, there are a number of zoning
districts in the project area that are unmatched with existing uses as well. He further stated
that the proposed redevelopment is an opportunity for the City Council to regulate
development in the area. He went on to state that this process will occur while there are
property owners that may want to build or remodel, and that the City Council needs to address
those issues. City Attorney Dougherty concluded by asking the Council to consider if it will
set policy for invoking eminent domain when discussing the public financing of a project or
the improvements to public infrastructure.
The City's Financial Consultant, Dave MacGillivray of Springs ted, stated that he
works with a number of municipalities that have experienced redevelopment. He said it was
interesting to note that in the past twenty years most redevelopment had incurred in the inner-
city and first ring suburbs, but that the last five years has seen much more redevelopment in
cities such as Minnetonka, Plymouth and other outer ring suburbs. Mr. MacGillivray stated
first that it is important to keep in mind that redevelopment projects are costly and require
significant public investment. He further stated that these projects take a long time and that
the Task Force recognize that when envisioning a process that could possibly take twenty
years. Mr. MacGillivray stressed the importance of partnering with private parties and said it
is ill advised for a city to go forward without the private sector. He said that the public and
private sectors need each other to do the project right and that any redevelopment would
essentially be market driven. He also stated that redevelopment projects are risky and that it
is important to manage risk properly as public stewards.
Mayor Awada asked Mr. MacGillivray if he had looked at the financing possibilities
for the Village Plaza Concept. He stated that he had and that with a preliminary estimated net
cost of $16 million, the land uses could conceivably cash flow with General Obligation Tax
Increment Financing Bonds on a 25 year redevelopment district.
Mayor Awada said she is very supportive of redevelopment and that the Task Force's
vision was consistent with the Council's desire at the beginning of this process. She stated
that her question all along had been whether the project would work financially. Mayor
Awada further discussed what immediate steps are necessary and asked if the Comprehensive
Guide Plan changes are the priority. City Attorney Mike Dougherty stated that yes, the
Comprehensive Guide Plan issues needed to be addressed first.
Mayor Awada opened the discussion to the City Council by asking if the vision was
consistent with their views. Council member Blomquist said there was much in the concept
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Special City Council Meeting Minutes
March 6, 2000
Page 4
that she liked, but felt there was too much retail and was disappointed that nothing had been
done with the Highway 13 and Silver Bell Road access area. Public Works Director Colbert
said that only one access will be allowed by MnDOT and that is the access at 13 and Silver
Bell. He further stated that in 1994 or 1995 and access study was done. He said that a
combination of physical improvements and traffic management approaches would improve
the congestion at Highway 13 and Silver Bell Road. He also discussed the future
signalization of Blackhawk Road and Highway 13 and the possibilities for directing some
traffic to that area. Council member Blomquist asked about the traffic being produced in the
concept. Public Works Director Colbert responded that the types of development envisioned
would maximize the capacity of the access point by utilizing the reverse peak period
movements. He stated that office uses would bring people in the morning and out in the
evening, which is the opposite of the existing traffic pattern of residential uses leaving in the
morning and returning in the evening.
Councilmember Carlson said that she really liked the plan and felt that the
redevelopment must have intensity of uses. She asked why three story retail wasn't
considered as opposed to just the two stories in the Village Plaza Concept. She also
mentioned that the possibility of a teen center at a new community facility in the City central
area might mean removing it from the Cedar/13 Concept proposal. She further stated she
liked the amount of green space in the concept and understands Councilmember Blomquist's
concerns, but stated there will be residential uses to support the additional retail. Assistant
. City Administrator Verbrugge further clarified that retail uses would be the last component of
a phased development so that the residential and office/hotel uses would be in place to create
the economic support necessary for a retail area.
Council member Masin asked more questions related to traffic congestion.
Council member Carlson pointed out there is a back door to the Cedarvale district on Nicols
Road that could perhaps make it easier to get out another way. Public Works Director Colbert
stated that the problem is peak periods and that traffic going up Nicols Road would run into
the congestion of Diffley and 77.
Mayor Awada asked if the Silver Bell Road and Highway 13 re-alignment would be a
necessary first step. Public Works Director Colbert recommended that it should be the first
step because Beau D' Rue Drive is already distressed bituminous surface and needs to be
rehabilitated. He further stated there wouldn't be a lost investment by proceeding now.
Councilmember Masin stated that she did not want to make the same mistakes as were
made with the central area. Council member Blomquist said she felt there was a need to slow
down and get more input from the community. Councilmember Carlson stated she felt it was
important to go forward in an effort to flush out the concept. Mayor Awada pointed out that
the re-alignment of the roads would require acquisition of several homes.
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Councilmember Carlson passed out a handout with possible recommendations for
moving forward. Council member Blomquist stated that she wanted to work with the
Commissions rather than passing the responsibility for addressing many of these issues to
them. Councilmember Carlson stated that she wanted to tap into the fresh ideas that
Commission members might have.
Mayor Awada stated that the City Council had run out of time for this agenda item and
asked to schedule another Special City Council meeting to continue discussions. Mayor
Awada moved, seconded by Councilmember Carlson, to schedule a Special City Council
meeting for Tuesday, April 11, 2000 at 5:00 p.m. The motion passed on a 4 - 0 vote.
COMMENTS FROM CAROLYN RODRIGUEZ, METROPOLITAN COUNCIL
REPRESENTATIVE
Due to the lateness of the special meeting, Mayor Awada moved and Council member
Carlson seconded to reschedule the agenda item to meet with Metropolitan Council
Representative Carolyn Rodriguez to March 21,2000 at 5: 30 p.m. The motion passed
unanimously.
JV
MARCH 6, 2000
Date
1I1~15oAda
City clerk