01/22/2008 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
TUESDAY
JANUARY 22, 2008
5:30 P.M.
EAGAN ROOM-EAGAN MUNICIPAL CENTER
I. ROLL CALL AND ADOPTION OF THE AGENDA
II. MEETING WITH EAGAN'S LEGISLATIVE DELEGATION
.1 s III. URBAN PARTNERSHIP AGREEMENT AND TRANSIT UPDATE
IV. OTHER BUSINESS
V. VISITORS TO BE HEARD
VI. ADJOURNMENT
Agenda Information Memo
January 22, 2008 Special City Council Meeting
II. MEETING WITH EAGAN'S LEGISLATIVE DELEGATION
ACTION TO BE CONSIDERED:
There is no formal action required. The purpose of this agenda item is to allow a dialogue between
the City Council and the Eagan Legislative Delegation.
FACTS:
• The City of Eagan is represented by State Senators Jim Carlson, District 38 and Jim Metzen,
District 39, along with State Representatives Rick Hanson, District 39A; Sandra Masin,
District 38A; and Lynn Wardlow, District 38B.
• The City Council has various opportunities to meet with members of the Eagan Legislative
Delegation, including certain Senate and House committee meetings and regional breakfasts,
such as the recent Chamber of Commerce Eggs and Issues Breakfast.
• The City Council asked for the opportunity to meet with members of the legislative
delegation prior to the start of the 2008 Legislative Session..
• In addition to the many legislative priorities the City of Eagan supports through its
membership with the LMC, AMM and MLC, the enclosed list of Legislation priorities and
positions has been established to serve as discussion guide. This list is not intended to be
comprehensive of every legislative issue important to the City; however, it does represent the
more critical issues facing the City.
• The Legislative priority memo was previously distributed to the City Council in December
2007 for review and comment; however, no comments were received. It was noted in
December that the handout would be provided to the Legislators at the January 22 workshop.
• Since the Legislative priority memo was prepared, the City has learned of an effort being
taken by the League of Minnesota Cities as it relates to extension of TIF Districts.
• In summary, the League is proposing a law that would extend the five year rule and TIF
District term for 5 years to permit the development and adoption of alternative
redevelopment plans and to adjust the TIF collection period to align with a development
timeline that accommodates the changes.
• The enclosed Legislative priority memo has been modified to encourage the Legislative
delegation to support the League's efforts with regard to the TIF extension legislation.
• Also the Legislative Priority attachment includes a section noted as "Other" which
addresses the Charter Commission and caucus night. Both of these topics have had
previous discussions.
ATTACHMENTS:
• Enclosed on pages0~ through 2 is the City of Eagan 2008 Legislative Priorities and
Positions, intended to assist the Council as a discussion tool with the Legislators.
• Enclosed on page ~ is a memo from Community Development Director Hohenstein further
explaining the legislation being proposed by the League of Minnesota Cities TIF Taskforce.
City of Ea~a~
City of Eagan 2008 Legislative Priorities and Positions
The following requests and positions represent the Legislative priorities for the City of Eagan during the 2008
Legislative Session. In order not to duplicate what has already been provided to our Legislators, this list does not
include every position on the issues that have already been addressed through policy documents set forth by the
League of Minnesota Cities (LMC), Metro Cities (formerly AMM), or the Municipal Legislative Commission
(MLC).
The City of Eagan respectfully requests the support of our Legislative delegation on the following initiatives:
Transportation
Secure funding sources to expand and maintain Eagan's transportation infrastructure.
• Since 2000, the City of Eagan has spent $3.6 million of local funds on State Highway improvements and $5.8
million of local funds on County Road improvements, for a total of $9.4 million that has been diverted away
from the City's local street needs.
• The City of Eagan has a projected deficit of $62.1 million over the next 20 years for its Transportation
Infrastructure Needs Analysis (TINA).
• Under the Urban Partnership Agreement, federal funds have been allocated to a number of transit projects in
Minnesota, including partial funding for improvements within the Cedar Avenue Transit Corridor. In order to
have access to these funds, the State of Minnesota must authorize the expenditure of matching funds. The City
of Eagan strongly supports the authorization of sufficient funds to secure this federal funding opportunity and
move the projects it would support forward, particularly as it pertains to the construction of the Cedar Grove
Transit Station.
Secure Funding for Proposed Ring Road
• The Ring Road would provide relief to the intersection of Yankee Doodle Road (Co. Rd. 28) and Pilot Knob
Road (Co. Rd. 31), which his the 2°d highest county road traffic volume intersection
• The Northwood Overpass has a 2007 construction cost estimate of $4.4 million, and the Duckwood Overpass
and interchange is estimated to cost $11.7 million.
• $1 million in Federal funding has been appropriated to the project, and all rights of way have been acquired
and preliminary approvals obtained for layout and access.
Land Use
Support Cedar Grove Tax Increment Financing (TIF) District Extension
• The Legislature is asked to support legislation being recommended by the League of MN Cities TIF Taskforce
that relates to extensions of TIF districts that were reliant on a substantial number of condominiums in their
plans, like the City's situation in Cedar Grove. The law would extend the five year rule and TIF District term
for 5 years for all such districts to permit them to develop and adopt alternative redevelopment plans and to
adjust the TIF collection period to align with a development timeline that accommodates the changes.
• Should the League's proposed legislation not move forward this session, in a future session the City may need
to request a 5-year extension of two elements of the Cedar Grove TIF district-the time limitation on
expenditures to support redevelopment (from 5 years to ten years) and the overall term of the district (from 26
years to 31 years).
• The City's need for either the League's proposed legislation or the 5-year extension is intended for two
purposes - 1) To preserve the ability to expend TIF funds, if necessary, on additional public improvements to
enhance higher density, pedestrian oriented, environmentally sensitive elements that may be constructed after
the current five year rule passes and 2) To align those costs with the tax generation from the remaining
redevelopment that is anticipated to occur beginning in 2008. The City will only use TIF proceeds to the
extent that a gap is demonstrated between what the developer would ordinarily pay for private investments in
similar developments and the actual costs in a redevelopment.
• The City is not requesting an extension of the time for the use of eminent domain.
Support TIF for Businesses Producing IT Products -
• Current TIF law limits the establishment of Economic Development. Districts to those situations that support
the expansion of businesses and creation of jobs that manufacture a physical product.
• An increasing number of businesses in Minnesota are creating software and on-line publications. The ability of
Minnesota cities to support the location and expansion of such businesses will be vital to the state's
competitiveness in current and future economies.
• Eagan's recent experience with Thomson West's proposed expansion illustrated the point. While it was clear
that the firm's expansion project would create substantial property tax base and a large number of head of
household jobs, current TIF law did not recognize it as being the equivalent of manufacturing, which would
have permitted the City to consider the formation of an economic development TIF district to support the
project.
• Instead, the City needed to pursue special legislation to request permission to apply the statute to Thomson.
While not all information businesses create products comparable to manufactured goods, state law should be
amended to create criteria under which production of information technology products may be defined as
manufacturing for TIF purposes.
Telecommunications
High Speed MN Bill
• The High Speed MN Bill supports a statewide broadband policy & speed goal.
• Eagan companies and residents testified in October at the House hearing in Eagan to voice their needs for
significantly higher broadband and voice their support for creating a Statewide speed goal and formulating a
State task force to create a statewide high speed policy and implementation plan.
• Eagan has endorsed the policy recommendations of the Gig Group.
• Testimony provided at the MN House hearing can be viewed on the City's Website.
Oppose Qwest/Statewide Franchise Bill
• The bill being proposed would remove franchising authority form local communities, and instead would create
a statewide franchising system.
• Qwest and AT&T are the primary companies pressing for the statewide system, despite the fact that there is no
evidence that Qwest has ever applied for or been turned down for a local franchise.
• Emerging evidence of the 10 states that have gone to statewide franchising shows that the laws have not
resulted in new entrants to the market or lowered prices. The statewide approach has also allowed existing
providers to get out from under their franchise obligations, thus leaving customers with no local dispute
resolution process, basic rate protection, or protection of the public rights of way.
Other
• The City Council has concerns about the lack of authority by the State and lack of empowerment for cities on
the issue of a Charter Commission being able to continue after unsuccessful elections.
• Since the Legislature approved the movement of the caucuses to the first Tuesday in February, the Legislature
must now amend State Statute, as it continues to state that cities cannot hold public meetings on the first
Tuesday in March.
City of Ba~au Tema
TO: TOM HEDGES, CITY ADMINISTRATOR
FROM: JON HOHENSTEIN, COMMUNITY DEVELOPMENT DIRECTOR
DATE: JANUARY 18, 2008
SUBJECT: REQUEST FOR CEDAR GROVE TIF DISTRICT EXTENSION
In preparation for the City Council workshop with our Legislative Delegation, we
have received some additional information from Ehlers and Associates regarding
an initiative by the League of Minnesota Cities TIF Task Force that relates to
extensions of TIF districts that were reliant on a substantial number of
condominiums in their plans, like the City's situation in the Cedar Grove
Redevelopment District.
The Task Force is encouraging the state to enact a general law that would extend
the five year rule and TIF District term for five years for all such districts, to permit
them the opportunity to develop and adopt aitemative redevelopment plans and to
adjust the TIF collection period to align with the a development timeline that
accommodates the changes. As a consequence, we believe that the best
approach to this issue for the. upcoming session would be to encourage our
Legislative delegation to support the general law if and when it comes forward. If a
bill does not come forward or it fails this session, the City could still make a request
for special legislation for its own term extension in a future session.
Please share this information with the City Council as it prepares for the meeting
with our Legislators at the~workshop on Tuesday. If you have any questions in the
meantime, please let me kn w.
Development Director
Cc: Gene VanOver'beke, Director of Administrative Services
v
Agenda Information Memo
Eagan City Council Workshop
January 22, 2008
III. URBAN PARTNERSHIP AGREEMENT AND TRANSIT UPDATE
DIRECTION TO BE CONSIDERED:
To receive a presentation and have discussion regazding transit issues related to Dakota
County and the City of Eagan, including the Urban Partnership Agreement, Cedaz Grove
Transit Station and Robert Street Corridor Study.
FACTS:
• The City of Eagan provides transit service and transit planning in partnership with the
Minnesota Valley Transit Authority and Dakota County. In the past, this partnership has
provided both a range of bus services and a series of transit facilities including the
Yankee Doodle-Pilot Knob Transit Station and the Cliff Road-Blackhawk Park and Ride.
• In addition to its ongoing participation in the MVTA Boazd, the City has also been
involved in a number of recent initiatives include the Cedar Corridor Group, planning for
the Cedar Grove Transit Station and the Robert Street Corridor Group.
• Dan Krom of Dakota County and Beverley Miller of MVTA will be at the. Council
workshop on January 22 to provide updates on these activities and the relationship of the
Federal Urban Partnership Agreement (iJPA) to a number of transit and transportation
improvements that aze expected to benefit residents of Dakota County.
• The UPA will provide grant funds to support a number of initiatives to reduce the
impacts of traffic congestion on the urban economy. The Twin Cities region is among
five metropolitan azeas in the nation that were selected to receive UPA funds.
• UPA funds will permit the advance development of a number of facilities in the Cedar
Corridor including the first three phases of the Cedaz Grove Transit Station -the bus stop
itself, a drop off azea (kiss and ride) and a approximately 150 space surface pazking lot.
• In order to qualify for the funding, two conditions need to be met. The State must meet a
matching funds requirement by passing a transportation funding bill eazly in the 2008
Legislative Session and the project needs to be completed and operational by September
30, 2009. Mr. Krom will provide an overview of this project and others affecting Dakota
County that are covered by the UPA.
• The County, MVTA and the City have been working closely with MnDOT to bring about
a reconveyance of a portion of the Cedaz Avenue right of way at the west end of the
Cedar Grove Redevelopment District to serve as the location of the Cedar Grove Transit
Station and serve as the anchor for the transit oriented design (TOD) planning the City
and Doran Pratt have been doing for the project. Substantial progress has been made in
this azea as MnDOT has confirmed that there is sufficient ROW for both the future needs
of Cedaz Avenue and the transit station as it has been approved in concept by the MVTA
Boazd and the City Council. MnDOT has laid out the process by which the property will
5
Agenda Information Memo
January 22, 2008 Eagan City Council Workshop
Page 2 of 2
be transferred for this purpose and it is anticipated that MVTA's engineers will begin
plans and specs for construction in the near future. Mr. Krom and Ms. Miller will also
provide an update on progress in this regard.
• The City is also participating with other northern Dakota County cities in the Robert
Street Corridor Study Group, which is considering the means by which enhanced transit
services will be provided between St. Paul and central Dakota County either in
coordination with or in addition to other transportation improvements in the area. Eagan
is on one edge of the study area, but the outcome of the study can have benefits for both
residents of the City who have destinations between here and downtown St. Paul and,
potentially, employers in Eastern Eagan who may have transit proximate to their
locations for reverse commute opportunities. Mr. Krom will provide an update in this
regard as well.
ATTACHMENTS:
• UPA Summary on pages ~ through
• Cedar Grove Transit Station Phase Plans on pa es ~ throu
• Robert Street Corridor Study Update on page through
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