07/28/1998 - City Council Special
Minutes of the Special City Council Meeting July 28, 1998 page 1
MINUTES OF THE
SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MN
JULY 28, 1998
00272
Present: Mayor Tom Egan, Councilmember Pat Awada, Councilmember Bea Blomquist,
Councilmember Sandy Masin, Planning Commission members Carla Heyl, Paul Bakken, Peggy
Carlson, Jerry Segal, Gary Huusko, Steve Burdorf, Larry Frank, Planner Julie Farnham, Senior
Planner Mike Ridley, City Administrator Hedges, Attomey Mike Dougherty, Finance Director
Gene VanOverbeke, Consulting Planner Greg Ingraham, Planner Pam Dudziak, Planner Bob
Kirmis, and Intern to the City Administrator Amy Hertel. Councilmember Ted Wachter was
absent.
ROLL CALL AND AGENDA ADOPTION
Mayor Egan called the meeting to order at 4:35 p.m. and the agenda was adopted with the
addition of the Cedarvale Area under Other Business.
VISITORS TO BE HEARD
The visitors present to comment on specific changes in the Comprehensive Guide Plan
elected to speak during that discussion.
DISCUSS COMP PLAN SUBCOMMITTEE RECOMMENDATIONS FOR LAND USE AND
ZONING CHANGES
City Administrator Hedges introduced this item and gave a brief overview of the work of the
subcommittee. He commented that he expected the discussion about Properties Identified For
Special Areas/Council Direction would be the most time consuming. He invited the subcommittee
to comment on the work they had done.
Councilmember Awada stated that the update was straightforward in most cases and
consisted of matching the zoning and land use designations to match the uses that have evolved
on the properties. She stated that this exercise was not only important for the City, but was also
necessary for submission to the Metropolitan Council. She stated that there were some unique
areas in Eagan that posed particular challenges for the subcommittee.
Councilmember Blomquist complimented Planner Farnham on her work, stating that it was
very representative of the work of the subcommittee. City Administrator Hedges informed the
group that he and Senior Planner Ridley had met with Planner Farnham and complimented her
on her broad understanding of the issues in the plan. He also introduced Attorney Dougherty as
a resource to answer any legal questions that may arise in the course of the meeting.
Planner Farnham indicated that most changes reflect current property uses, that there may
be some confusion in referring to the properties due to a potential change in the language used
which will be discussed later and suggested the group proceed directly to the special areas to be
considered for council direction.
In regard to Area 1, Planner Farnham stated that the property would be difficult to subdivide
much further and that the issue is with regard to a small gift shop would become a non-
conforming use if the land use is changed to residential. She stated that whether the area is
guided 01 orta commercial, there will be nonconforming entities; if it were guided 01, the gift shop
is a non-conforming use and if it is guided commercial, the homes are non-conforming uses.
Planning Commission Member Bakken asked if the residences would be able to obtain a higher
sale value if their property were zoned as commercial. Planner Farnham responded that the
assessments are done according to the highest and best use for the property, so the value
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depends on the use. Planning Commission Member Bakken asked if the current residents would
have to maintain their properties differently with a zone change. Planner Farnham responded
that all non-conforming uses must adhere to the non-conforming ordinances, which do not allow
for expansion but do allow for maintenance. Attorney Dougherty clarified that no capital
improvements can be made to properties that are non-conforming uses. Planning Commission
Member Bakken stated that those property owners have a lot to lose with a zoning change
because they've made investments in those properties. Planner Farnham said that retention of
the current agricultural zoning may allow for those homes to be conforming uses, but the gift shop
would be subject to the non-conforming uses ordinances.
In regard to Area 2, Planner Farnham indicated that the subcommittee wanted to designate
this a Special Area on the new land use map with area specific policies to be included as an
appendix to the Comprehensive Guide Plan. The group concurred.
In regard to Area 3, Planner Farnham stated that this would be another Special Area to
encompass the Waters planned development. The group concurred.
In regard to Area 4, Planner Farnham stated that this area had been studied in 1994 which
resulted in the change to Rural Residential land use. She further stated that this area functions
as a special area and should be handled in accordance with other special areas. Planning
Commission Member Bakken clarified that the special area would encompass the provisions of
the Rural Residential district; he further stated that it is important to protect those who are there
now. The group concurred.
Councilmember Masin arrived at 4:48 p.m.
In regard to Area 5, Planner Farnham stated that it is guided 02, zoned agricultural, but that
the subcommittee recommended the area be guided for low-density residential, as the current
single family use wifllikely remain for the foreseeable future. Consulting Planner Ingraham
commented that the property is hard to develop because of its shape and size.
In regard to Area 6, Planner Farnham indicated that the subcommittee thought this area
(currently Industrial) was really more of a Public Facility, given that it houses the United States
Postal Service building and should consequently be reguided to Public Facility. Mayor Egan
commented that it seemed like the subcommittee was putting form over substance and stated
that it should remain Industrial to reflect the use of the property. Senior Planner Ridley expressed
concern with this change because it would open up other Public Facilities areas to industrial
activity. Planning Commission Member Heyl inquired about the permissibility of truck garages
and maintenance facilities as Public Facilities. Planner Farnham stated that the allowances in
Public Facilities were vague and should be revisited, possibly instituting more CUPs or modifying
the performance standards. Planning Commission Member Heyl said that the Public Facilities
areas should be consistent and that the Commission and the Council should reconsider the
requirements for buffering and other provisions of the Public Facilities properties.
Councilmember Blomquist concurred, stating that they should review the setbacks for Public
Facilities and review their uses. Councilmember Awada stated that she thought there were
setbacks for Public Facilities. Senior Planner Ridley confirmed that there are setbacks for Public
Facilities structures and that the setbacks depend on the height of the building. Planning
Commission Member Burdorf stated that the USPS facility does not conform to his understanding
of Public Facilities. Councilmember Masin asked what the property is currently zoned and Senior
Planner Ridley responded that the property is currently zoned 1-1. Attorney Dougherty stated that
the federal government is not subject to City zoning ordinances. Planner Farnham said that the
subcommittee considered the facility a public entity and therefore thought Public Facility zoning
was most appropriate. Mayor Egan suggested the Public Facilities zoning be separated into two
degrees of intensity, including a Heavy-Use Public Facility and Light-Use Public Facility.
Planning Commission Member Segal commented that he is less concerned with the Public
Facilities zoning because it is subject to Council consideration and the Council can reject
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proposals that do not fit the description of Public Facilities. Planner Farnham asked if it was the
consensus of the group to keep this area as Industrial. Councilmember Awada stated that the
decision on this property should be consistent with a decision about Seneca; she further stated
that the properties should remain industrial. City Administrator Hedges asked if the storage of fire
trucks would be considered an appropriate use under Public Facilities. Councilmember
Blomquist asked what the setbacks for those facilities would be and City Administrator Hedges
responded that they would be at least as much as the setbacks for Commercial or Industrial
properties. Consulting Planner Ingraham reminded the group that the difference between Public
Facilities and Commercial or Industrial uses is that the private sector has more choices about
where to locate, whereas there are less options when considering where to install a public facility.
Planning Commission Member Heyl expressed concern for residents who may move in next to a
publiC facilities zone and be unpleasantly surprised at a heavy, industrial-type use allowed on that
property in the future. She further stated that it was important that the City's designation and
regulation of Public Facilities should reflect the community's understanding of that designation
and stated that the City needs to be very clear about the potential uses of a Public Facility zone.
Planning Commission Member Carlson stated that she thought there should be two types of
Public Facilities. Councilmember Blomquist stated that the conditional uses allowed under Public
Facilities were vague and that she would rather form two categories of Public Facilities. Planning
Commission Member Carlson said that the Commission and the Council should consider factors
like traffic and noise when making decisions regulating Public Facilities. Planner Farnham asked
if it was the consensus of the group to keep the property zoned Industrial. Councilmember
Awada said it sounded like they were considering changing Public Facilities to two categories.
Consulting Planner Ingraham stated that if the property were sold at some point, the only
appropriate use would be industrial and the property would have to be re-zoned and re-guided to
reflect the change. Attorney Dougherty said that the City should be consistent in its policies and
pointed out the City's advantage of having the golf course area as a Public Facility. Planning
Commission Member Frank stated that there would be very few options available if USPS
decided to sell because not many Public Facilities are appropriate to their building.
Councilmember Awada questioned the value of two PF districts because the decisions about
developments are at the discretion of the Advisory Planning Commission and the Eagan City
Council; she further stated that the two distinctions would be meaningless. Planning Commission
Member Carlson stated that she still thought the two distinctions would be useful. Mayor Egan
stated that it would be appropriate to reasonably regulate two different types of Public Facilities
uses. Consulting Planner Ingraham suggested that both the USPS property and the Seneca
property be retained as Industrial and that the Council revise the performance standards for
Industrial properties because the City is less vulnerable keeping the existing zoning. Planning
Commission Member Segal directed the group to think long-term, asking how the group would
want the property zoned if someday USPS is no longer there. The group concurred that the
industrial land use and zoning should be retained.
In regard to Area 7, Planner Farnham indicated that the subcommittee recommended this
area which encompasses the Central Area be included as a Special Area. The group concurred.
In regard to Area 8, Planner Farnham indicated that the subcommittee recommended the
property be guided as low-density, maintaining the Agricultural zoning. The group concurred.
In regard to Area 9, Planner Farnham stated that the subcommittee recommended rezoning
the area to 01, thus making Richfield Blacktop a non-conforming use and subject to the
limitations of the non-conforming ordinances. She stated their concern with guiding just that one
property as commercial, making it an island of commercial property amidst extensive residential
properties. Planning Commission Member Carlson expressed concern that the use of this
property seems to just keep expanding. Mayor Egan commented that Richfield Blacktop had
been issued a citation and that their application for expansion had been granted, so the feasibility
of rezoning the area to fit with low-density becomes an even greater challenge. Consulting
Planner Ingraham questioned what the group wanted to have in this location long-term, stating
that if it is zoned General Business, another business could move into the Richfield Blacktop
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location amidst residential areas. Councilmember Masin stated that because they had gasoline
pumps at that location, she would never feel comfortable allowing someone to build a home
there. Councilmember Blomquist stated that there are ways to treat land to make it livable for
homes; she cautioned against .spot zoning" policies, especially ones that are poorly maintained.
She further stated that their CUP is currently being broken and that the current use of that land is
more Industrial in nature. Planning Commission Member Carlson stated that this is an
excessively heavy use in a residential area. Planner Farnham asked if the group wanted to
rezone the property to coincide with the existing 01 guide. Mayor Egan stated that the business
should be a non-conforming entity and subject to those limitations.
In regard to Area 10, Planner Farnham stated that the subcommittee recommended keeping
the area low-density, indicating that the physical features of the land make it challenging to
develop. She stated that it could be included as a Special Area. Councilmember Awada
emphasized the difficulty of developing this area. Planner Farnham said that this is a designated
PO with low and medium density residential and limited business uses. Mayor Egan suggested a
discussion with the owners of Blue Cross to determine the scope of any future inclusions in the
Planned Development and their long-term goals for the property. Planning Commission Member
Carlson stated that high-density residential was not the answer for this property. Planner
Farnham stated that the City would contact Blue Cross.
In regard to Area 11, Planner Farnham stated that a portion of this property is owned by the
City and may be appropriate to guide it quasi-public. It was also suggested that this area be
included in a Special Area in conjunction with the Cedarvale Study Area.
In regard to Area 12, Planner Farnham indicated that the subcommittee thought the entire
area should be designated a Special Area to allow for the flexibility needed for planning the
potential Light Rail Transit location. She further stated that Area 13 would be appropriate for
inclusion with Area 12.
In regard to Area 13, Planner Farnham indicated the subcommittee recommended this area
be designated a Special Area. Policies and a land use map would be developed in conjunction
with the Cedarvale Study.
In regard to Area 14, Planner Farnham indicated that the subcommittee recommended the
area be zoned quasi-public to reflect its use as a cell tower site. The group concurred.
In regard to Area 15, Councilmember Awada stated that the potential settlement regarding
this property would make this discussion moot.
In regard to Area 16, Planner Farnham stated that the land use designations currently split
the City-owned property in half, inquiring if there was interest by the City in subdividing the
property. Planning Commission Member Bakken asked if this area would be a good candidate
for Office Service. Planner Farnham responded that the existing uses would then become non-
confonning. Mayor Egan stated that the area included a touchy parcel and emphasized the
importance of being sensitive to the needs of the surrounding neighbors. He expressed interest
in considering the economic viability of the property and making it consistent with the surrounding
uses. City Administrator Hedges stated that the Council should consider plating the land and will
discuss this area in further detail later in the meeting. Planner Farnham indicated that the most
appropriate uses for the area included Office Service, which would allow LB or NB zoning. The
group concurred.
In regard to Area 17, Planner Farnham stated that the subcommittee recommended
maintaining the current zoning and guiding for the area. The group concurred.
In regard to Area 18, Planner Farnham emphasized the importance of not encouraging
investment by current property owners due to interest by Dakota County to purchase the land.
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She further commented that zoning to Parks would make the houses non-conforming and may
also hasten the sale of the homes. Consultant Planner Ingraham noted that the homes currently
there could be torn down and replaced with larger homes if not made non-conforming. Planning
Commission Member Carlson inquired if the church on the property would be acquired by the
County, stating that the City should contact the County about the church. Consulting Planner
Ingraham said that the County is interested in buying on a willing-seller basis. Planner Farnham
said that making those homes non-conforming uses would limit their ability to invest in the
property that is set for County acquisition, commenting further that the area could also be
designated a Special Area and policies developed to address the transition from residential to
park zoning. Planning Commission Member Carlson stated that the area should be zoned for
Parks, making the homes non-conforming uses and stated that the homeowners should be
noticed of the County's intent to purchase the land. Councilmember Blomquist said that the City
should talk to the County first to see if they have the resources to acquire the land. Consulting
Planner Ingraham informed the group that the County has reserve funds for this purpose and will
be able to acquire the property when it becomes available.
In regard to Area 19, Planner Farnham indicated that a pocket of General Business uses
exists amidst an area designated for residential 03 and 01 uses. She stated that the
subcommittee recommended re-guiding to low-density residential and make the commercial uses
non-conforming. Planning Commission Member Carlson asked if there was anything the City
could do to ask these properties to clean up the area. Planner Farnham said that there is nothing
the City can do unless those properties come in to apply for a permit, in which case they would be
brought up to current standards. Councilmember Masin asked what the City of Rosemount
intends to do with their adjacent properties. Planner Farnham said that Rosemount's property is
guided Rural Residential. Planning Commission Member Carlson inquired about the zoning for
the Gun Club, stating that it should be a Public Facility. Councilmember Masin stated that the
area should remain recreational. Planner Farnham indicated that an appropriate zoning for the
area may be quasi-public. Planning Commission Member Burdorf expressed concern about the
long-term use, stating that zoning this as a Public Facility was an expression of support by the
City of this use of the land. He further stated that the neighboring residential areas would be
more welcoming of General Businesses than of the Gun Club. Planner Farnham confirmed that
designating this area as a Public Facility would show support for the current use. She stated that
the public facilities zoning is inconsistent with the 01 guide. She suggested further review of the
area, including discussions with the neighboring residents, Rosemount and the Gun Club.
DISCUSS DRAFT LAND USE DESCRIPTIONS
Planner Farnham asked the Planning Commission and the City Council to contact her with
comments on the potential new land use descriptions.
DISCUSS PUBLIC PARTICIPATION PROCESS
Planner Farnham stated that she identified about 70 parcels of land that are proposed for a
significant change and that the property owners should be notified individually about the changes.
These meetings could be separate from the 5 neighborhood meetings that will be held for general
public input. It was suggested that staff prepare a list of those properties and review it with the
subcommittee.
MARICE MANOR SENIOR LIVING COMMUNITY
City Administrator Hedges gave an overview of this item. He stated that the property in
question was located next to Sidney's and the developers wanted to build an assisted living
community. Finance Director VanOverbeke stated that the developers had not initially thought
they would need financing through bonds, but were now requesting $22 million worth of bonds,
covering almost 100 percent of the costs of production. He stated that the project may qualify as
tax-exempt if it meets the standards of a nursing home, in which case the property owners would
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have to make a payment in lieu of taxes. He informed the Council that the City could not issue
the bonds because Eagan is committed to issuing fewer than $10 million in bonds. He stated that
the Dakota County HRA was willing to issue the bonds, but they required City endorsement of the
project prior to those negotiations. He asked the Council if they would be interested in having the
HRA pursue a payment in lieu of taxes option through their negotiations. Councilmember Awada
said that the HRA should certainly pursue that option and her comment was met by consensus on
the Council. Councilmember Masin asked how that payment would be applied to City operations.
Finance Director VanOverbeke stated that the income would be treated like any other tax
revenue. He further stated that the agreement to be reached with the developers would include a
protective clause whereby the property would be subject to standard property taxes if it was not
granted tax-exempt status by the County assessor. City Administrator Hedges stated that the
item would be on the August 4, 1998 Consent Agenda.
AUTHORIZATION TO PAY CERTAIN CLAIMS
City Administrator Hedges gave an overview of this item, stating that this authorization would
allow a streamlined process of paying the bills. Finance Director VanOverbeke stated that action
by the Council could authorize a staff person to pay the bills on a weekly basis, subject to
accounting regulations and policies that can be modified by the Council at any time.
Councilmember Awada stated that the current system was inefficient. City Administrator Hedges
informed the Council that the City Council's role in the process would not change as a result of
this authorization. Mayor Egan asked how the presentation of the bills to the Council would
change. Finance Director VanOverbeke said that the bills would be reviewed every Wednesday
to be paid every Friday and the Council would receive updates at the Council meetings of all bills
paid since the last Council meeting. City Administrator Hedges emphasized the scrutinizing
process the bills are subjected to before being paid and stated that these procedures would not
be relaxed at all. Councilmember Awada stated that it is important for governments to be moving
away from these inefficiencies. Finance Director VanOverbeke stated that this matter would be
on the August 18 Regular Council Meeting agenda.
DIRECTION RE: CITY OWNED PROPERTY AT DIFFLEYITRUNK HIGHWAY 3
Finance Director VanOverbeke informed the Council that the City has received several
inquiries about the property and asked the Council if there was interest at this time in selling.
Councilmember Blomquist said she would feel more comfortable selling the property after the
neighborhood meetings have taken place. Mayor Egan identified the precarious balance
between reclaiming the City's investment in the property and sensitivity to the needs of the
residents. Councilmember Masin asked if the City would ever have any need for this in the
future. City Administrator Hedges responded that it is hard to predict the future needs of the City,
but informed the Council that the only consideration given to this land previously was as a
potential site for satellite maintenance, which had not come to fruition. Councilmember Awada
stated that the Council should wait until after the Comprehensive Guide Plan Update was
completed.
CEDARVALE
Councilmember Awada expressed enthusiastic interest in seeing the Light Rail Transit
system have a hub in Eagan and asked how to ensure this would happen through lobbying and
committee efforts. She also asked who would be representing Eagan on the planning committee
for the Light Rail Transit. City Administrator Hedges responded that Tom Butler would serve as
the business community representative and that Margaret Shriner would participate as the
resident representative. Councilmember Awada stated that the Light Rail Transit is extremely
important and said the City should give a lot of support to the committee members.
City Administrator Hedges informed the Council that the Light Rail Transit is being addressed
at the staff level, stating that he had sent the resolution to the appropriate persons. He stated
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further that he had written the LRT into the Cedarvale RFP; he also requested that Tom Butler
send tile City copies of all documentation he receives through the committee.
Councilmember Awada called for an aggressive approach to obtaining the Light Rail Transit
hub in Eagan, asking for information about how to push this matter through and ensure Eagan's
participation. City Administrator Hedges stated that Eagan is currently a wild card, but garners
support from the MVTA and Dakota County. He further stated that Bloomington has incentive to
support the hub in Dakota County. He also indicated that Eagan could find support from its
legislative delegation. Councilmember Blomquist warned against assuming a stop in Dakota
County would mean the location would be in Eagan, citing discussion about having the stop at the
zoo in Apple Valley. She indicated strong support for pushing for a stop in Eagan.
Councilmember Awada directed City Administrator Hedges to compile more data on this by
Tuesday, August 4,1998.
OTHER BUSINESS
City Administrator Hedges informed the Council of an opportunity to meet with Jim Colbert of
Colbert, Burns and McDonnell to discuss the potential golf course opportunity in the Waters area
of Eagan. Due to open meeting laws, City Administrator Hedges informed the Council that either
less than two Councilmembers could attend or it could be publicly advertised as a special
meeting. Mayor Egan volunteered to attend with City Administrator Hedges and another
volunteer. Councilmember Blomquist also volunteered to attend. Councilmembers Masin and
Awada declined. City Administrator Hedges reminded the Council that this matter is still in the
early discussion processes and that it will not be up for formal consideration until some more
meetings have been held with the property-owners involved.
ADJOURNMENT
The meeting adjourned at 7:13 p.m.
July 28, 1998
Date