04/08/2003 - City Council Special~~
AGENDA
SPECIAL CITY COUNCIL MEETING
TUESDAY
APRIL 8, 2003
5:30 P.M.
EAGAN CITY HALL
COMMUNITY ROOM
I. ROLL CALL AND AGENDA ADOPTION
II. VISITORS TO BE HEARD
III. REVIEW SHORELAND ZONING ORDINANCE /CREEK BUFFER
CONDITION
IV. REVIEW KENNERICK STORM SEWER OPTIONS
V. REVIEW WINTER TRAIL MAINTENANCE PROGRAM
VI. CONSIDER EXPANSION OF JP-47 POND
VII. REVIEW SHELTER CORP. REQUEST FOR A COUNTY TIF ISSUANCE
FOR THE CEDAR VILLAS PROJECT
VIII. OTHER BUSINESS
IX. ADJOURNMENT
« ~~-~. MEMO
'~~ city of eagan
TO: HONORABLE MAYOR & CITY COUNCILMEMBERS
FROM: CITY ADMINISTRATOR HEDGES
DATE: APRIL 4, 2003
SUBJECT: SPECIAL CITY COUNCIL MEETING /TUESDAY, APRIL 8, 2003
A special City Council meeting is scheduled for 5:30 p.m. on April 8, 2003 in the Eagan City Hall
Community Room.
REVIEW SHORELAND OVERLAY ZONING/CREEK BUFFER
The Guide Plan Amendment for Special Area 5 (Cedarvale Area) spoke to environmental issues
existing in the northeast quadrant of Cedar Avenue and Highway 13. Included in the discussion
were the City's buffer requirements for the two creeks in the area. At that time, the City Council
requested staff to schedule the City's creek buffer standazds as a discussion item for a future Special
Council Meeting and to notice those owning property within 300' of Harnack and Kennealy Creek.
Harnack and Kennealy Creek are located in Section 18 and are designated as Tributaries by the
DNR and Eagan, within the City's adopted Shoreland Zoning regulations. In this instance, the
Shoreland azea is defined as 300' from the tributaries or designated floodplain extent, which ever is
greater. This definition was based on the Shoreland extent of tributary river segments defined in
Minnesota Rules, part 6120. Both of these creeks aze also considered urban trout streams by the
Minnesota DNR Fisheries and, although essentially unrelated to the Shoreland rules, aze protected
similarly as public waters.
Attached for your review on page ~ is an Area Map that highlights Haznack and Kennealy
Creeks.
Issue:
Minnesota Rules provides minimum requirements for local governments to incorporate into their
Shoreland Zoning regulations. The Rules also establish minimum requirements for uses in the
buffer azea of tributaries and list pazticulaz land uses as either, permitted, conditional, or not
permitted. The current City of Eagan Shoreland Zoning Ordinance prohibits all development
within 300' of urban rivers and tributazies.
ACTION TO BE CONSIDERED:
To discuss and provide direction regazding the current City of Eagan Shoreland Zoning Ordinance
as it relates to urban rivers and tributaries.
a
PROJECT 806R, KENNERICK ADDITION/POND HDP-1 - STORM SEWER
IMPROVEMENTS
On February 18, 2003, the City Council held the public hearing to consider Project 806R,
Kennerick Addition/Pond HDP-1 Storm Sewer Improvements. Due to the presentation of new
information to the Council and residents at the public hearing, Project 806R was continued to the
April 15, 2003, City Council meeting. The Council duected staff to prepaze plans for bidding
with alternative alignments and construction methods and pipe materials. The City Council
scheduled further discussion of the details of the storm sewer outlet improvements for Pond
HDP-1 and consideration of the alternatives to a Council workshop. The consulting firm of
Bonestroo, Rosene, Anderlik and Associates will be in attendance for a presentation of the storm
sewer improvement details, including an Engineer's cost estimate for the base and alternative
alignments and co traction methods. An exhibit of the various storm sewer alignments is
included on page ~.
The City Council also directed staff to meet with the neighborhood to discuss the details of the
alternatives for the storm sewer outlet improvements for Pond HDP-l. The meeting was held
Mazch 12, 2003. The minutes for this meeting are included on pages ~ through ~.
The City will have access rights for all of the temporary construction and permanent drainage and
utility easements needed for the original feasibility report design by May 12, 2003, as staff
believes no unforeseen issues or objections will be encountered. If the alternative alignment
suggested by the residents at the February 11 public hearing and favored at the March 12
neighborhood meeting is supported by the City Council, it will be necessary for staff to acquire
the new easements for the alternative alignment prior to the Council's project approval and
contract awazd. City staff would not advocate the Council's approval of an alternative alignment
without the required easements from the property owners by the close of the public hearing.
Staff is contacting effected property owners to obtain these easements. An update of the
easement status for the alternative alignments will be presented to the Council.
ACTION TO BE CONSIDERED:
Reach an understanding of the construction issues and options for consideration at the Public
Hearing and for possible Project Approval and Contract Awazd at the April 15 Council meeting.
REVIEW WINTER TRAIL MAINTENANCE PROGRAM
On April 1, 2003, the City Council received and reviewed several request for revisions and/or
additions to the City's current Winter Trail Maintenance Program. As a result of that discussion,
three (3) requests were directed to a Council workshop for further discussion and consideration.
These aze summarized in a memo included on pages ~ through ~. Enclosed without
page number aze Winter Trail & Sidewalk Maintenance Route Considerations maps for 2003-
2004.
ACTION TO BE CONSIDERED:
To reach a consensus for each request and direct it to a specific Council meeting for formal
approval.
3
FISH LAKE WATER QUALITY IMPROVEMENT-PROPOSED CITY POND JP-47.2
(ALUM SETTLING BASIN)
FACTS:
• The alum dosing facility to benefit Fish Lake water quality was built in 1998 at the storm
water lift station next to Hurley Lake. Until the City acquired the land or ponding easement to
construct a specific alum settling basin, the alumlphosphorus material would accumulate in
JP-47, a wetland located east of Denmazk Avenue and classified by the City as a Class VII-
Sediment Basin.
• Beginning 1997, the Minnesota DNR issued permits to the City to operate the alum injection
system on a limited, experimental basis that ended December 31, 2002.
• In three years of operation from 1998 through 2000, lazge quantities of alum sludge
accumulated in JP-47. Since 2000, the City determined not to operate the alum injection
system until the sludge accumulation was appropriately mitigated and along-term operation
and maintenance program was established.
• On October 14, 2002, the City Council authorized: 1) removal of alum sludge from JP-47, 2)
creation of a sediment basin within JP-47, and 3) prioritization of the construction of a
settling basin on land between Hurley Lake and JP-47, subject to land availability and
pending development.
• On February 18, 2003, the City Council received bids for Contract 03-OS (JP-47 Alum
Storage Basin Improvements), which would address the first two of the three
abovementioned items. However, the Council denied the contract, primarily because
consultants determined that the City would be unable to comply with the state water quality
standards for JP-47 that would be required under anon-experimental operating permit.
• Therefore, until an artificial settling basin is constructed, the alum injection system cannot be
operated. In the late 1990s, the City was aware that this may become an issue during
discussions and issuance of the first (experimental) permit.
• The reasons that JP-47 cannot continue to receive alum discharges include the following:
1. JP-47 is an unlisted "water of the state," in accordance with Minn. Rules 7050 and
Minn. Stats. 115. As such, the water in the basin must meet dissolved aluminum
water quality criteria. However, the travel time and the reaction time in the storm
water force main between Hurley Lake and JP-47 are minimal and not expected to
provide adequate settling at the pipe outlet (where the water quality standard would
need to be met);
2. Re-classifying JP-47 as a "water of the State" would require the City to file with the
Minnesota DNR either a petition for reclassification or a request for a variance (Minn.
Rules 7050.0190) from the standard. Neither approach is expected to achieve a
change in the water quality standazds applicable to JP-47. Both approaches would
require considerable time and expense;
a
3. Some local residents have expressed concerns with the continued use of JP-47 for
alum accumulation and with the periodic maintenance/construction necessary to
remove the alum sludge;
4. According to initial discussions with the City attorney, it appeazs that alum settling,
temporary storage of alum sludge, and dredging aze allowable within the rights
granted by the storm water easement for JP-47. However, there could be a legal
challenge to this; and
5. The natural shape of JP-47 is technically less efficient than a constructed basin
designed specifically to settle alum sludge; the natural volume of JP-47 is inadequate
and would require excavation to expand it; and continued use for alum settling would
require maintenance approximately every 2 to 4 yeazs to remove the sludge.
• The development of an "off-line" alum settling pond (proposed JP-47.2) eliminates the need
to seek a variance from State water quality regulations, significantly reducing the permitting
costs for the long-term operation of the system.
• Proposed JP-47.2 would have the following conceptual and design characteristics:
1. Two cells would treat all flows from Hurley lift station during alum injection. The
two-cell system would facilitate efficient pond maintenance and alum sludge removal;
2. The buffer azea immediately surrounding proposed JP-47.2 would be landscaped and
vegetated to natural appeazances and conditions;
3. The settling efficiency of proposed JP-47.2 would be significantly higher than the
current efficiency of JP-47;
4. The minimum footprint of proposed JP-47.2 would be 2.5 acres adjacent to JP-47.
The expanded area would provide adequate access for maintenance using the existing
easement to the north; and
5. The expected cleanout frequency will depend on alum concentration injected, annual
precipitation (i.e., storm water flow), and duration of dosing (e.g., April through July).
The expected cleanout frequency is 2 to 5 years. Efforts to optimize the operation of
the dosing program (i.e., when, how much, for how long, etc.) will reduce the costs to
purchase alum and to remove the alum sludge.
• The land on which proposed JP-47.2 would be constructed is currently owned by Mr. Pat
McCarthy, 1275 Deerwood Drive. The City needs to consider its options to acquire access to
or fee title interest in said property before detailed plans for proposed JP-47.2 can be
completed.
A preliminary implementation schedule has been drafted that provides for construction of
proposed JP-47.2 by the end of this year and removal of alum sludge from JP-47 by the end
of this winter. The schedule facilitates the oppommity to re-start the alum injection system by
April 2004.
Attachments: Proposed City Pond JP-47.2 alum settling basin is attached without page number.
ACTION TO BE CONSIDERED:
Consider land acquisition for placement of proposed City Pond JP-47.2 and consider
implementing a schedule for construction of City Pond JP-47.2 and the alum cleanout of JP-47.
REVIEW SHELTER CORP. REQUEST FOR A COUNTY TIF ISSUANCE
FOR THE CEDAR VILLAS PROJECT
Per the City Council's request, the Dakota County Boazd of Commissioners continued the
request of Shelter Corporation for a County TIF issuance for Cedaz Villas to their Apri122
meeting in order that the City of Eagan could discuss and consider the item.
The location map for Cedaz Villas is enclosed on page ~. Also enclosed, on pages L~
througho~~, is the Mazch 18 memo from City Administrator Hedges to the City Council,
which provides a summary of the history between the City, Shelter Corp., and the Community
Development Agency (CDA). The minutes of the November 8, 2001 City Council meeting,
which include the conditions set forth by the City Council in regard to the Cedar Villas project,
which were submitted to the Metropolitan Council as part of a Comprehensive Guide Plan
amendment rocess, are enclosed on pageso~~ throu .Also enclosed on pages
through !~ aze the background information memos provided by the CDA to the Dakota
County Admin/Finance/Policy Committee members and to the County Boazd, in prepazation for
the Mazch 25 meeting. Lastly, the Power Point Presentation pre ared by the CDA for the County
Board meeting on the 25~', is enclosed on pages , L~ through.
A question has been raised as to whether the City was asked to approve/consider the use of TIF
financing for the Cedaz Villas project at the time the project was considered by the City Council.
In reviewing the City's files, no such request by the CDA or Shelter Corp. was found at the time
the application was submitted. The first notice to the City of the possible use of TIF came in
Apri12002, as noted in the Mazch 18 memo from the City Administrator to the City Council.
There have also been questions raised regarding the legal authority of the City in this matter. The
City Administrator has been in communication with the City Attorney, as recently as Apri14.
Enclosed on pages ~ through is a memo dated March 14, 2003 from the City
Attorney regarding the City's authori .Likewise, correspondence from the Office of the State
Auditor ( SA) was also received on this matter. The Mazch 17 letter from the OSA is enclosed
on page.
In further communication with the City Attorney about the City's authority, he asserts that the
decision whether the City may or should be involved in the CDA-Shelter TIF application is a
decision for the City Council. Specifically, the Attorney notes that the law is uncleaz regarding
the determination of whether the term "project" includes the aspects of financing, as it relates to
Shelter's applications to the City for approvals. In short, the Attorney states that the matter is
unclear because the statute conferring authority to the CDA does not define "project". As the
City Attorney outlined in his attached memo, the statutes dealing with the powers of an HRA
define the term project as, "...may be applied to cash, assets or other funds used in connection
with the development or operation of the project (housing)". The question that remains is
whether the use of the language of "may" gives the City the option to require an approval of the
use of TIF by the CDA. It is unstated, according to the City Attorney, as to whom makes the final
determination of whether to invoke the "may" and whether it is applicable in this instance.
Mark Ulfers, Executive Director of the CDA, along with Jay 3enson of Shelter Corporation, will
be in attendance on Apri18 to discuss and answer any questions that the Council may have about
the request for a County TIF issuance. The City Administrator has also requested that the City
Attorney be present at the Apri18 meeting.
DIRECTION TO BE CONSIDERED:
Should the Council wish to take any formal action on this matter following the discussion on
Apri18, it would be appropriate to do so at the April 15 City Council meeting.
/s/ Thomas L. Hedges
City Administrator
Comprehensive Plan 2000 -Special Area
Exhibit
~~v~a~o~ Special Area No. 5 -Area Map 3.7.5.a
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PROPOSED TRUNK STORM SEWER & CONTRIBUTING AREA ~ Bonestroo
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CITY OF EAGAN - AMENDED REPORT FIGURE 3
~ Anderlik &
Associates
KENNERICK ADD. P OND STORM SEWER IMPROVEMENTS
Engineers & Architects
CITY PROJECT No. p ~+
806R K~\49\4900111\CAD\dwg\4900111R103.dwg 2/5/2003 9~00~45 AM CST
4900111R103.DWG FEBRUARY 2003 ~ 49-00-111
INFORMATIONAL NEIGHBORHOOD MEETING MINUTES
PROJECT 806R
KENNERICK ADDITION /POND HDP-1
STORM SEWER IMPROVEMENTS
MARCH 12, 2003, 6:30 P.M.
TRAINING ROOM, FIRE ADMINISTRATION
Attendance: Russ Matthys, City Engineer; Kevin Kimmes and Dave Bennet, Bonestroo, Rosene,
Anderlik & Associates; 11 persons representing 9 properties.
A. Welcome and Introduction
City Engineer Russ Matthys welcomed the property representatives, presented the agenda for the
meeting and introduced Consultant Kevin Kimmes for the project presentation.
B. Presentation
Consultant Kimmes presented proposed improvements, including photos of alternative
alignments, construction methods and skimmer outlet structures.
C. Questions/Comments
1) I am concerned about the loss of drainage from Pilot Knob Elementary. If we eliminate the
water that comes across the south side of Lone Oak Road, will it dry up the pond? It will be more
than compensated for by the Kennerick Addition runoff. There will still be some minor drainage that
comes across Lone Oak Road.
2) Where will the water from Pilot Knob Elementary go then? It will go west on Lone Oak Road.
3) How does water from Kennerick Addition get to the pond? By a storm sewer that will be
constructed by the developer.
4) What happened to the possibility of a catch basin being installed on Lone Oak Lane? It was
turned down at the last council meeting.
5) If the pond is expanded, will more water enter the sanitary sewer? The Normal Water Level
(NWL) will still be 862, so it will not increase the likelihood of water going into the sanitary sewer at the
casting. The plan is to make the casting water tight.
6) What is the recommended grade for directional drilling? Two percent (2%).
7) How far is the edge of the pond from the end of the outlet pipe? Location indicated on overhead.
8) Do existing stakes indicate easements? Yes, as explained on the overhead, a stake was placed at the
NWL and I-IWL along each property line to locate the easement for the homeowners. Site visits may be
scheduled with staff to explain stakes and easements.
9) Did we make a mistake in not being paid for the sanitary sewer easement when it was installed
many years ago? Not if sewer was beneficial to you.
10) What storm level was the pond designed to? A standard design of a one percent (1 °lo) storm.
11) What difference is there in easement acquisition cost for different alignments? About the same.
l~
12) Will construction specialists be allowed to bid only on work they would do? Contractor has
subcontractors to bid on special work.
13) Which alternative is least invasive? Directional drilling along Zehnder Acres lot line.
14) Will directional drill impact sanitary sewer? Will need to work azound manhole and sewer pipe.
15) On the common lot line alternative, if open cut occurs, are all of the pine trees going to be
removed? Yes, they fall directly over the pipe and would need to be removed.
16) Are there any pumps/lift stations going in? No pumps. Storm sewer will be a gravity flow line.
17) What about moving E-W original alignment to north five feet (5')? Included in plans now. John
Salisbury is OK with this additional impact to his property. No easement on Ann Maag's property.
18) Then no question, open cut on E-W alignment. We are not comfortable with unsure flood
protection with directional drilling.
19 How many trees would be removed in Kennerick Addition with open cut trench? 4 to 5.
20) How do you classify trees? Only count twelve inch (12") diameter or larger.
21) What type of access issues with construction along the lot line? Maximum length of disturbance
preventing vehicular access to home should be one day.
22) What will be the width of disturbance with the open cut trench? Backhoe width 16'-18' with the
use of trench boxes.
23) How did we get the 1.67% grade on the common lot line? I thought it was 1.97%? 1.97% is
correct, not 1.67%. 1.67% was later validated as the correct grade.
24) What height is sanitary sewer manhole above ground surface? Flush at ground level.
25) Is there the potential of damage to house foundations on lot line? Yes, but construction adjacent
to 30 houses during July 2000 Storm Mitigation efforts was successful. If open cut, specifications include
the double trench box method to keep the trench width smaller.
26) What about directional drill lot line only past critical areas for less length and open cut rest?
Good suggestion, could get bids to reflect that change. There will be a mobilization cost to get the
directional drilling equipment to the sight. There may be little cost difference to accommodate
suggestion.
27) Can you check directional drill to ensure correct proper elevation? Not until after constructed.
Correction could only be accomplished by doing the directional drilling again.
28) While directional drilling, is there a risk that a "belly" will appear in the pipe? There is a risk if
the contractor hits rocks.
29) Can we find out what types of soils are out there? Doesn't the contractor want to know the soil
information? Unknown soils, borings only tell you where taken. Sand in borings for Kennerick
Addition to 25'. Sand encountered to 10' depth for utility service construction on Lone Oak Lane.
30) What happens if pipe deflects? Reduce oultlet capacity, potentially raise flood level.
'1
31) What types of pipes are being used? RCP (reinforced concrete pipe) for open cut trench - HDPE
(high density polyethylene -plastic) for directional drilling.
32) How would you ensure correct grade is attained in directional drill? Televise the line.
33) Which pipe would have less roots impact to pipe? Plastic is better.
34) What are the pipe material differences? Durability of both is good -they aze the same diameter.
35) Would you know where sanitary sewer service is? We would look at construction as-built plans
and talk to the residents.
36) When is the sanitary sewer going to get lined? Possibly next year but just don't know with the
current budget constraints.
37) What is engineering staff s recommendation going to be? No recommendation.
38) What would you suggest? All would work.
39) What happens with power poles in the way? The utility company will relocate them or hold them
in place when construction is next to the pole.
40) Where does MH 103 go compared to utility poles? Storm sewer goes under. Electric company
may have to relocate.
41) What would be the impact to John Salisbury's property? A 20-foot permanent easement strip.
42) What is a pond credit? Relevant to the Storm Sewer Trunk assessment, it is an area of the property
impacted by a pond or wetland for which homeowners aren't assessed since drainage is collected in area.
43) Can we remove canary reed grass and expand flood area with native grasses for 2:1 wetland
area? Yes, that would address the Wetland Conservation Act. Since we cannot excavate the reed canary
grass without expanding the wetland area, there is the option of using herbicide. Homeowners are
interested in it but would like more information. Would like to see the reed canary grass removed
and replaced with wetland grasses.
44) How does herbicide on reed canary grass impact properties? Three (3) applications needed over a
1.5+ year time frame.
Neighborhood took a vote to see which alignment/altemate is preferred. The homeowners' first choice
was the alternative to directional drill along the common lot line within Zehnder Acres. Their second
choice was to open cut the "modified" (pipe easement completely off Zehnder Acres) original alignment.
Neighborhood discussed interest in pond expansion. Any enlarging of the pond was desired to the north
and south. Did not want expansion further west by Todd Chase & Mitsy Lutz. Trees will limit expansion
on Ann Maag's property to the north.
G:RM/03/MISC/MINUTES/Proj 806R, Kennerick Add NH Meeting 3-I2-03
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MEMO
aty of eagan
TO: MAYOR AND CITY COUNCILMEMBERS
THOMAS L. HEDGES, CITY ADMINISTRATOR
FROM: THOMAS A. COLBERT, DIRECTOR OF PUBLIC WORKS
DATE: APRIL 3, 2003
SUBJECT: WINTER TRAIL MAINTNENANCE PROGRAM
BACKGROUND
In October, 1996, the City Council implemented an experimental trial program for maintaining sidewalks
and trails during the winter season on a select segment consisting of 3.8 miles primarily serving walkers to
the elementary schools. They also adopted a policy and an ordinance requiring certain property owners to
maintain the adjacent sidewalks.
In the spring of 1998, the Council evaluated the program and considered expanding it throughout the City.
Staff was directed to inventory the existing system (105 +/- miles}, evaluate the priority uses of the
sidewalks and trails, prepare a draft plan (46 +/- miles) and present it to the community for comments and
suggestions.
On May 4, 1998, a community meeting was held in the Council Chambers with a live broadcast in the Cable
channel. The meeting was rebroadcast on May 7, 9 and 10. An open comment period was maintained until
May 15. Survey forms were provided and general comments were received via a-mail and letters.
At a special workshop session held on May 26, 1998, the Council reviewed all the comments and modified
the draft plan to address the needs and desires of the community. This final draft plan (54 +/- miles) was
then presented to the public for fmal review and comments and subsequent Council adoption on June 2,
1998. Since then, the City Council has added approx. 4.25 miles of trails to the system (new construction
along collector/arterial road upgrades meeting the trail policy criteria.) The current program consists of
58.25 miles of the total 105.44 mile system. (This does not include the internal Park trail system.)
COSTSBUDGETS
The original 1998 annual budget requirement was estimated at:
The 2003 approved budget is:
The last 4 year average annual cost has been:
The highest yeaz was the winter season of 2000!2001 at:
The previous low year was 2001/2002 at:
The current season-to-date for the 2002/2003 season is:
$180,000 (53 miles @ $3,400/mile).
$159,500 (58 miles at $2,750/mile).
$ 85,000 ($1,511/mile).
$150,558 ($2,600/mile).
$50,000 ($862/mile).
$26,000 ($450/mile)
CURRENT CONSIDERATIONS
At the Council meeting of April 1, the Council continued consideration of three (3) requests to a workshop
session. These segments are identified as follows:
~3
Citizen Petition - CP #1 (Gramercy Park) Request to plow the north side of Yankee Doodle Rd
from Coachman Rd. to Central Parkway to provide access to the new Community Center.
Additional cost: Adding this segment (2070 ft:) would cost and average of $600/yr.
Existing conditions: Currently along Yankee Doodle Rd., the trail is plowed on the north side from
Heritage Lane/Blue Cross Rd to Coachman Rd. The maintained portion is then switched to the
south side all the way from Coachman Rd. to Elrene Rd. (Note: The north side of Yankee Doodle
Rd. is also maintained from Pilot Knob Rd. to Lexington Ave. -only segment in the City where
both sides of a street are maintained.)
Histor~of segment: The segment between Blue Cross Rd. and Coachman Rd. was transferred from
the south side to the north side in 2000 to provide more direct accessibility for all the residential
properties north of Yankee Doodle Rd. (no residential properties exist on the south side along this
segment). However, a request to add (or switch to) the north side of Yankee Doodle Rd. between
Coachman and Pilot Knob Rd. was denied by the Council in 2000.
2. Citizen Petition - CP #2(b) (Timberwood Village) Request to plow the west side of Pilot Knob
Rd. from Lone Oak Rd. to Towerview Rd. to provide a recreational loop for the residents of this
development.
Additional cost: Adding this segment (1240 ft.) would cost and average of $360/yr.
Existing conditions: Currently along Pilot Knob Rd., the trail is plowed on the east side from
Corporate Center Dr. to Cliff Rd. with the exception of the segment between Duckwood and
Wescott where it is switched to the west side.
History of segment: The segment in question has not been previously addressed by the Council.
Issues: This request should be considered as an addition only as it is not practical to transfer from
the east to the west side for this small segment without a signal at Towerview Rd. to provide for a
safe crossover for pedestrians.
Citizen Request - CR #3 (via Councilmember Carlson) Request to add the east side of Pilot
Knob Rd. from south of Crestridge Lane to Duckwood Dr. to provide pedestrian access to MVTA
Park and Ride facility.
Additional cost: Adding this segment (1080 ft.) would cost and average of $310/yr.
Existing conditions: Currently along Pilot Knob Rd., the trail is plowed on the east side from
Corporate Center Dr. to Cliff Rd. with the exception of the segment between Duckwood and
Wescott where it transfers to the west side.
History of segment: The segment in question was originally included in the approved plan. In 1999,
the segment between Wescott Rd. and Duckwood Dr. was switched to the west side by Council
action in response to a citizen's complaint about the negative impact the plowing had on their yard
adjacent to the trail.
Issues: This request should be considered as an addition only as it is not practical or safe to transfer
pedestrian traffic midblock without the appropriate traffic control south of Crestridge Lane. An
alternative would be to transfer the maintained segment between Wescott and Duckwood back from
the west side to the east side at no additional cost. However, this could have a potential adverse
impact on the existing residential properties off Englert Rd. (approx. 38) who would lose their
current trail access requiring a midblock crossing of Pilot Knob Rd.
I will be available to discuss these requests with the Council at the Workshop meeting on April 8.
enc. Program map with specific requests noted.
~~-
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Development/Developer: Cedar Villas
Application: PreUm. Subdivision, Rezoning, CG Amendment, Prelim PD
Case No.: 30-PS-12-07-01, 30-RZ-09-07-01, 30-CG-0407-01, 30-PD-03-07-01
M.P Vrepend ulnp ERSI AreVMw 1.7. 7.reN b.a m.P d•d provfA.A
~~ br o.Yer Ceumy v~ s„y.r ap.nm.m.nd ~. ~~.. a Jwr mot.
TMI! MAF Is INTENOEG FOR REFERENCE Us! ONLY tJ
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City of Eagan
M t N N E v ~ ~ a
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not eeepen.lble for erren er omleeleee. S
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s~ r~
MEMO
city of eagan
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ADMINISTRATOR HEDGES
DATE: MARCH 18, 2003
SUBJECT: SHELTER CORPORATION TO ESTABLISH A TAX INCREMENT
FINANCING DISTRICT FOR CEDAR VILLAS DEVELOPMENT -
There aze a number of questions that have been raised in the last several days regazding a request by
Shelter Corporation to establish a TIF~district to assist the Cedaz Villas Development located on
Nicols Road and Erin Drive. The T1F request has been made to the Dakota County CDA.
I have had an opportunity to speak to former Assistant City Administrator Verbrugge and Mark
Ulfers, Executive Duector of the CDA, to reconstruct for the City Council what has transpired since
the City was notified in Apri12002 by the CDA of the Shelter Corporation request. The following
is a summary of the information I have been able to compile in a short time frame today:
• Attached is a copy of a letter the City Administrator received on April 11, 2002 that was
referred to Assistant City Administrator Verbrugge for his review. A meeting was held on
Tuesday, April 30, with Andrea Brennan, Mazk Ulfers, Jay Jensen and Jamie Verbrugge with
the City Administrator attending a portion of the meeting to learn more about the request by
Shelter Corporation. There was a consensus at that meeting that rather than pursue a TIF for the
Cedar Villas Development, it would be in the best interest of Shelter Corp. to find other sources
of financing if a gap existed in their project. During the next several months, according to Mark
Ulfers, Shelter Corp. was successful in receiving financing through the Family Housing Fund of
the McKnight Foundation and some additional financing through the Home Money Housing
Block Grant offered by the CDA.
• Mr. Ulfers shazed a letter with my office today by fax from Peter Coyle to former Mayor Pat
Awada, which references a meeting that Mr. Coyle and former Mayor Awada had regarding the
financial issues relating to the approved Cedaz Villas Project. Despite the other sources of
funding, the Shelter Corp., as referenced in the December 13 memo to Mayor Awada, still had a
funding gap of $654,000 and the CDA has offered to establish a housing T1F district to close
the gap.
• In speaking with Assistant City Administrator Verbrugge and Mark Ulfers, there was an e-mail
exchange between Mr. Ulfers and Mr. Verbrugge dated December 20, 2002 where it was
advised by Mr. Verbrugge that it would be best for Shelter Corporation and the CDA to wait
and address the entire issue at a City Council workshop anticipated during the month of
February.
• A presentation by Shelter Corp. has been on a future City Council workshop list since January.
There has been no Special City Council workshops held other than the meeting to interview
Advisory Commission and the three evenings the Council spent in retreat.
~~
• The Shelter Corporation/CDA Development update was to be reviewed at either the March 25
or April 8 workshop. Given the amount of Park Commission related items for the March 25, it
had been discussed that the Shelter Corp./CDA be scheduled for the Apri18 work session.
• At some point the County decided to schedule a public hearing to consider the Shelter Corp.
application which is scheduled for March 25. I spoke with Mark Ulfers about a continuance, so
the City Council could better understand the issue and have an opportunity to address the
Shelter Corp./CDA development financing. Mr. Ulfers said that he would recommend to the
Board that the public hearing be continued for 30-days which will allow the City Council an
opportunity to review this item at the April 8 workshop.
In closure, there appeaz to be some public policy questions relative to; 1.) Shelter Corporation
appears to be maximizing the government financing as opposed to their own equity contribution to
the project. This is one of the reasons the TIF is being looked at to fill the gap. 2.) If the City
Council would like to review the Dakota County application and the County CDA Boazd is willing
to continue for 30-days, this item would be scheduled for April 8 with the appropriate action taken
at the April 15 meeting, if the City Council so desires to make a recommendation upon review of
the application.
Had there been a workshop earlier in the yeaz, this item would have been before the City Council
with proper direction. It is unfortunate that the hearing got ahead of the ability to schedule this at a
City Council workshop.
I am attaching two additional memos; one that was e-mailed to the City Council eazlier today from
the State Auditor's office and one from the City Attorney that raises a question about the City and
the County's authority as a governing board as it relates to the Shelter Corp./CDA TlF proposal.
Given additional time, more background will be provided for Council review.
City Administrator
Attachments
~?
t1AR-18-Eb03 13 42 1~KU7A COUNTY CDA
1 Dakota County
Community Oevelopment Agency
......................
Apri] 11, 2002
Tom Hedges, City Administrator
City Hall
3830 Pilot Knob Road
Eagan, MN SS I22
RE: Cedar Villas
Dear Mr. Hedges:
6~ 1 b't5 4405 P . 02
'Tlie Dakota County CDA has received a request aubmitted by Shelter Corporation to
establish a Tax Increment Financing District to assist the Cedar Villas development located at
Nicoll Road and Erin Drive in the City of Eagan. A copy of the TIF application is enclosed.
The purpose of this letter is to provide the opportunity for community review. The CDA's
Finance Policy requires that all applications will be sent to the city in which the development
is Iocated for review and comments. If you have comments please send them to me by May
13, 2002. If you have any questions, please call me at 423-8144.
Sincerely,
Andrea Brennan
Housing Finance Coordinator
C/c. Mark Ulfers, Executive Director
2496 145th Street West ~ Rosemount, MN 55068
tei 651.423-4800 fax 651-423-1273 TDD 651.423-8182
~~
M~1vtORaNDVM
bJl b r~ 44YJ~ r, b,3
LARIaN, HoFFMAN, DALY & LII~IDCREN, LTD.
wttorncys at Lw
1 S00 Wells Fargo Plate
7900 Xerxes Avenue South
Bloorai~~ggtton, Minnesou-SS431
Telep~-one: S2 835-3800
FAX: 952; 896-3333
TO: Mayor Pat Awada
FROM: Peter Coy a /~
DATE: Deceruber 13, 2002
~F~
2Q
~Op~
RE: Cedar Villas TIl7 Request
Pat, thanks for meeting with me regarding the financial issues relating to the approved Cedar
Villas project. You will recall that the City Couzlcil required that the developer of the market
and affordable rental uluts (Shelter Corporation) reduce its unit density from 124 to 104; in
addition, the Council required the addition of 60 garage stalls. All of the project's fixed cost for
land and infrastructure had to spread over fewer wets resulting in an increased per-unit cost and
reducing the size of the mortgage. The mortgage amount with 124 units would have been
513,600,000; with only 104 units the projected mortgage is 511,600,000, leaving a gap of
approximately S1,9S0,000.
Separately, the park dedication fees were quoted by City staff initially at 64,508 per acre or
approximately $59,000. The actual fee totaled $228,052. The City's Park and Ree Cortunission
has declined to reduce this fee.
To help reduce the $1.95 million gap, all of the development fee ($800,000) has been waived
already by the developer (Shelter Corp). The developer is pursuing other fonds with the goal of
reducing the funding gap to approximately $650,000.
Dakota County's Comnnunity Development Authority has offered to establish a housing T1F
District encompassing Cedar Villas to close the gap. The City would need to consent in writing
to the creation of the District. Cedar Villas is projected to generate slightly more than $100,000
in property taxes annually based on 2002 rates. The City's share of taxes would be
approximately 531,000 annually. The increment would be used to close the $650,000 financing
gap for the project. With the tax increment assistance, Cedar Villas would be able to pay all of
the park dedication fees.
Thanks for your consideration of this request.
Pate
Cc: Jay Iensen
Mark Ulfers
815916.1
Iq
-„\V 11'1 WVIl1 1 \,.Lr'1 0.7j 0 f J yyVJ
From: Mark Ulfers
To: Jamie Verbrugge
Date: 12/20102 4:54PM
Subject: Re: Shelter Corp/CDA development
t received you voice mail and understand that it would be better to wait for the council workshop in
February. We will follow up soon with a response to your earlier questions. Andrea has been out the past
two days attending a funeral and we should get to this early next week. See you soon. Mark
»> Jamie Verbrugge <JVerbrugges~ci.eagan.mn.us> 1Z/16/02 04:3SPM »>
Mark,
Many thanks for the explanation regarding Shelter's housing TIF request. In
order to accurately inform the Council of the current issue, could you
please rospond to a few questions?
As I understand it, Shelter is requesting that the County create a TIF
housing district for the project area. Related to that.. .
' Can the County create the T1F without the City's approval, just as
the City can without County approval? And it is the County, correct. and
not the CDA that Creates the TIF?
' Does the County want the City to be "on record" not opposing the
TIF? If yes, does that mean a format position of support or "no position"?
Is it enough to not issue a position of opposition?
* if the City Council were to express opposition, is the County
likely to proceed in any event?
As you've explained it, Shelter has roughly a 5500,000 gap.
" That is after eliminating most developer teas from the project
budget and after commitments from the CDA for about 5490,000 of assistance
in the way of HOPE and HOME funds, correct?
Shelter is seeking a 1st mortgage through MHFA- You explained in detail the
requirements of MHFA, including a higher than normal DCR (debt coverage
ratio) that is causing Shelter to get letters of credit- These letters of
credit are expensive and not likely to ever be released as a result of the
DCR requirement.
' Can you put some of that explanation on paper, inGuding the
first-tlme funding vehicle that MHFA is seeking?
Regarding the TIF:
' H8s the County prepared a TtF run to show whet the local impact is
likely to be and for how Fong?
' Is Tax Abatement of County taxes only a possibility, and if so,
what term would be necessary to make it a viable option compared to TIF?
Regarding Shelter:
• Are you confident that Shelter has done their due diligence to
prepare a responsible pro forma not designed for an eleventh hour TIF
request, and this request is reasonable given the cirwmstances?
As I mentioned in our phone call today, I will talk to Tom about having this
as ~n informational diswssion on Monday, December 23rd if it ie an urgent
matter. If it can wait until January, that might be better. Please advise-
Thank you, Mark. (just a few questions; not too bad, right?)
r . r~o
~~- . o-«~,~ 1 ~ • w~ DAKOTA COUNTY CDA 651 675 4405 P . 07
Jamie Verbrugge
Assistant City Administrator
CC: Andrsa Brennan; ttari Gill
p~ ~ TOTAL P. 07
rrv~ io vJ 11•.7koHh1
P.1
OFFICE OF TIE STATE AUDITOR
Tax Increment Financing Division
525 Park Street, Suite 400
St. Paul, MN 55103
Fax
TO: Tom Hedges, City Admin ~aM~ Daniel Greensweig
COMPANY: City of Eagan COIviPANY: OSA • TIF Division
SUBJECT: Letter to Council Members PHONE: (651) 296-7979
FAX: (6S1} 675-5012 ~~~ (651)282-5298
DATE: March 18, 2003 PAGES: 1 (Includes Cover Sheet)
IMPORT~,N'I' I'~TOTICE .. ~ :. ' ~ ., ''. ~ ~ , .
This message is intended only for.the use of the individual entity.to which it:is:addressed;.and,may
contain information that is.privileged, confidential, and exempt from disclosure undcr.,applicable
law. If the reader of this message is not the intended recipient, or'~the employee or agent responsible
for delivering this message to the intended recipient, you are hereby notified that ally dissemination,
dist~ibuti'on, or copying of this communication is strictly prohibited.:. If yqu~ have received this
cotnmunication in error; please notify us immediately by teleptione.and retunn the.original massage
ao us via the U.S. Postal Service..
Mira,
The attached Iettcr needs to go to Tom Hodges and each of the council members. If you have
any questions, please call me at the number above.
Thank you.
~a
P1AR 18 ' 03 11 ~ 30AM
t9•~v. off..
~~` _ /<o
~~~~~
PATRICIA AWADA
STATE AUDITnR
March 17, 2003
P.2
STATE OF MIl'v'NESOTA
OFFICE OF THE STATE AUDITOR
SUITE 400
525 PARK STREET
SAINT PAUL, MN 55103.2139
TIF Direct Disl: (651) 296-4716
Tff Fax: (651) 262-5298
(651) 296-2551 (Voice)
t65 f) 296-4755 tFax)
steteaut3itor~osa.state.tutt.us (!;Mail)
1-800.637-3529 tReiay Service)
Councilmember Peggy Carlson
3830 Pilot Knob Road
Eagan, Minnesota 55122-1810
Dear Councilmember Carlson:
I am writing in response to the question ybu recently posed to the State Auditor's Office regarding the
Dakota County Community Development Agency's potential creation of a tax increment financing district
within the city of Eagan. As I understand it, your concern had to do with Eagan's role in the TIF district
creation process.
Dakota County CDA operates pursuant to special legislation, Minnesota Statutes, Section 383D.41. In most
ways, it is subject to the same restrictions as the majority of county housing and redevelopment authorities
that are created under general state law. For example, if Dakota County CDA wishes to undertake a housing
development, redevelopment, or economic development project within the boundaries of a city, it must
obtain the approval of the appropriate city council with respect to the pro}pet's location. Similarly, in the
case of a housing project, Dakota County CDA must also obtain approval of the relevant city's housing and
redevelopment authority, unless that city has previously requested Dakota County CDA to assume
responsibility for housing duties within the city's boundaries.
Once these approvals have been received, Dakota County CDA is not required to obtain further approval
from the city before it creates a tax increment financing district. As a practical matter, some counties will
engage in discussions with the cities for which acounty-created 'T1F district is proposed, but that is a matter
of policy and not statutorily mandated. As long as the TIF district otherwise complies with the applicable
laws, its creation is left to county discretion.
Your city attorney, Michael Dougherty, and I briefly discussed this last week. At his request, I am providing
a copy of this letter to him.
I hope this information is helpful. If you have additional questions, please feel fret to contact me.
Very trulYyours,-
--~(
Daniel J. Greenswcig
Assistant State Auditor/Director of Tax Increment Financing, Investment and Finance
Cc: Michael Dougherty
Recycled pupar wirh a minimum of
155f~ post-consumer wa~ta
a3
An Equrl Opportunity Employa•
SEVERSON, SHELDON, DOUGHERTY
& MOLENDA, P.A.
TO: Tom Hedges, City Administrator
FROM: Michael Dougherty, City Attorney
DATE: March 14, 2003
RE: Cedar Villas
Our File No. 0206-19218
Throughout the week, I have been in contact with the State Auditor's office with respect to a Tax
Increment Financing plan being contemplated by the Dakota County Community Development
Agency ("CDA"). It is my understanding that the State Auditor's office will be issuing an
opinion addressing concerns raised by an Eagan Councilmember. While the Auditor's opinion
addresses the CDA's authority in implementing a tax increment plan, there is a tangential
element of which you should be aware.
Historically the county has acted as the housing authority for the City of Eagan. I am not aware
that this has been by a formal appointment, but I understand that in practice the county has
exercised this authority for many years. Under Minnesota Statute Section 383D.41, in instances
where the CDA handles the duties of a municipal housing authority and a housing project is
constructed in Dakota County pursuant to such authorization, the location of the project must be
approved by the City Council. As you may recall in December of 2001, the City Council
approved the location of the housing project on Nichols Road.
Chapter 383D of the Minnesota Statues does not define "project". However, the CDA's
authority is generally those powers set forth in Chapter 469 of the Minnesota Statues. These
powers include housing and redevelopment and tax increment financing which is the subject of
the state auditor's opinion. Under Minnesota Statutes Section 469.002, the term "Project" is
defined to mean a `housing project"; in addition the statute states that the term may also be
applied to all real and personal property, assets, cash, or other funds, held or used in connection
with the development or operation of the project.
Thus, it may be argued, that the CDA, as a designee of the City of Eagan, requires Eagan's
approval for the location where the CDA proposes to use tax increment financing. Essentially,
the project approvals that would need to be obtained from the City of Eagan relate to the location
of the housing as well as the financing component for the project. The funds or other assets used
in connection with the development or operation of the project, may be considered part and
a~
parcel to the project under Chapter 469. Under the above interpretation of the term "project", an
additional approval by the City could be required prior to the use of tax increment financing for
the Cedar Villas Project.
MGD/j ep
Cc: Gene VanOverbeke, Director of Administrative Services
2
O~~
Eagan City Council Meeting Minutes
November 8, 2001
Page 8
Councilmember Carlson moved, Councilmember Fields seconded a motion to approve
certification of delinque~utility accounts to Dakota County for collection wi property taxes.
Aye:4 Nay: 0
CERTIFICA ON OF DELINQUENT FALSE AL BILLS
City Administrator Hedges tated the City currently has ap roximately 14 false alarm
accounts with delinquent payments a the assessable amount i 3,875.00.
Mayor Awada opened the public h ring. There bei no public comment, she closed the
public hearing and turned discussion back to e Council.
Councilmember Tilley moved, Councilme be Fields seconded a motion to approve
certification of delinquent false alarm bills to Dakot ounty for collection with property taxes.
Aye: 4 Nay: 0
CERTIFICATION OF DELINQUENT NOX1i~QUS WEED CUTTING BILLS
City Administrator Hedges stated the ity currently has o noxious weed cutting
account with delinquent payments and the sessable amount is $1 .00.
Mayor Awada opened the publi Baring. There being no public mment, she closed the
public hearing and turned discussion ck to the Council.
Councilmember Carlson moved, Councilmember Tilley seconded a motion to approve
certification of delinquent noxious weed cutting bills to Dakota County for collection with
property taxes. Aye: 4 Nay: 0
OLD BUSINESS
COMPREHENSIVE GUIDE PLAN AMENDMENT, REZONING & PRELIMINARY
SUBDIVISION -SHELTER CORPORATION
City Administrator Hedges introduced this item regarding a Comprehensive Guide Plan
amendment, a rezoning and preliminary planned development and Preliminary Subdivision for
17.1 acres located west of Nicols Road and north of Erin Drive. Senior Planner Ridley gave a
staff report.
Mayor Awada discussed the process that has taken place regarding consideration of the
proposed project over the past few months. She thanked Councilmembers Tilley and Carlson for
their work with the developer in modifying the project.
Jay Jensen, Shelter Corporation, made a presentation regarding the changes that have
been made to the proposed subdivision during the past couple of months. He further stated that
the over all density of the project has been reduced.
a~
Eagan City Council Meeting Minutes
November 8, 2001
Page 9
Mayor Awada discussed the decrease in density. Councilmember Carlson thanked the
developer for his cooperation and indicated that she is in support of the rezoning and preliminary
planned development and preliminary subdivision. Councilmember Fields expressed her
appreciation to the developer and stated she is also in support of the project. Councilmember
Tilley stated she felt it is a quality project and is in favor of approval.
Councilmembers agreed that conditions of approval shall be amended /added due to the
revised site plan and discussion regarding pedestrian movement.
The Council discussed the rezoning and the preliminary subdivision. Senior Planner
Ridley explained that the Comprehensive Guide Plan Amendment will be submitted to the
Metropolitan Council for review. After response from the Metropolitan Council, action on the
preliminary planned development and preliminary subdivision will be placed on a future consent
agenda for approval.
Councilmember Carlson moved, Councilmember Fields seconded a motion to direct that
a Comprehensive Guide Plan Amendment from RC (Retail Commercial) to MD (Medium
Density Residential) to be submitted to the Metropolitan Council for review and approval subject
to the following conditions: Aye: 4 Nay: 0
Rezoning:
1. A written Preliminary Planned Development Agreement shall be executed and recorded
with the County Recorder's office.
2. The property shall be subdivided and platted.
3. The owner and applicant and/or developer shall enter into a Final Planned Development
Agreement with the City prior to issuance of a building permit. The following exhibits
are necessary for the Final PD Agreement:
• Final Site Plan
• Final Building Elevations
• Final Landscape Plan
• Final Site Lighting Plan
• Final Signage Plan
4. The term of this Planned Development shall be five years.
5. The developer shall insure that the building plans, materials and construction of the
building improvements are such that they will provide an interior sound level of 45 dBA
as compared with a noise level of 65 DNL.
6. Prior to Final Planned Development approval, the developer shall provide a copy of all
cross easements and other agreements between the two lots documenting the joint access
a~
Eagan City Council Meeting Minutes
November 8, 2001
Page 10
to site amenities and use of private streets, as well as any maintenance agreements for
such shared facilities within this development.
7. On-street parking should be prohibited along all streets within the development.
8. Building setbacks shall be not less than those shown on the approved Preliminary Site
Plan dated October 31, 2001.
9. Amore detailed landscape plan shall be provided with the application for Final Planned
Development and shall include underlying grading contours, show plant quantities, and
identify individual species graphically. The final landscape plan shall note the minimum
size specification for deciduous shade trees is 2-1/2 inches and six feet for coniferous
trees, and that automatic irrigation will be provided for all landscaped areas.
10. The development shall provide at least 32,000 square feet of recreational space, which
may include play lots, swimming pool and clubhouse, as well as open common yard
areas. The basketball court shall not be included in satisfying the recreational space
requirement because it is located less than 100 feet from the ponding area.
11. Revised building elevation plans shall be submitted for the Final Planned Development.
The plans shall identify building materials and colors. Trim and roof colors shall contrast
with the siding for added visual interest. The type of materials shall be consistent
throughout both the Dakota County CDA and Shelter Corporation portions of the
development, though different but complementary colors maybe used among the
buildings.
12. A Site Lighting Plan will be required with the application for Final Planned
Development. The plan shall show a fixture details and photometrics. Lighting shall be
indirect and diffused and shall not be directed upon public rights-of--way or adjacent
properties, and the source of light shall not be directly visible from off the property.
13. The sign plans shall be revised so that the sign height does not exceed 7 feet. The signs
shall be set back a minimum of 10 feet from the property lines. Additionally, the sign
location at Erin Drive and Nicols Road is subject to City Code Section 11.10, Subdivision
7 regarding traffic visibility. A sign pennit shall be obtained prior to installation of the
sign and the location confirmed for compliance at the time of permit issuance.
14. All requirements set forth in Section 11.10, subdivision 24 of the City Code shall apply to
this development. The developer shall submit detailed plans at the time of application for
Final Planned Development demonstrating that these standards are satisfied.
15. The developer shall provide a painted pedestrian land on Erin Drive.
Preliminary Subdivision /Preliminary Planned Development
~~
Eagan City Council Meeting Minutes
November 8, 2001
Page 11
1. The developer shall comply with these standards conditions of plat approval as adopted
by Council on February 3, 1993: Al, B1, B4, C1, C2, C4, D1 and E1
2. The property shall be platted.
3. Prior to final subdivision approval, the developer shall provide a copy of all cross
easements and other agreements between the two lots documenting the joint access to site
amenities and use of private streets, as well as any maintenance agreements for such
shared facilities within this development.
4. The developer shall insure that the building plans, materials and construction of the building
improvements are such that they will provide an interior sound level of 45 dBA as
compared with a noise level of 65 DNL.
5. The developer shall construct the private streets to widths in accordance with City code
requirements.
6. This development shall meet the City's water quality requirements through a combination
of on-site ponding and cash dedication.
The stormwater pond shall be constructed to treat 13.1 acres of the site area. It shall
contain a minimum wet-pond volume of 1.23 acre-feet and shall have a minimum area of
0.43 acres. The stormwater treatment pond shall be constructed according to NiJRP
standards with a maximum depth of 6 feet, a 10:1 aquatic bench beginning at the normal
water level, and an outlet skimmer according to City design standards.
8. In lieu of ponding to treat stormwater from 4.0 acres of the site, a cash dedication of
$8,770.00 also shall be required.
9. The developer is responsible for compliance with any regulations imposed by Excel
Energy concerning construction and grading within the easement on the northern part of
the property.
10. Tree mitigation is required and shall be accomplished through the installation of fourteen
(14) category B trees (or an equivalent combination of category A and/or category C
trees).
11. This development is responsible for cash park and trail dedications. The dedication is to
be collected at the time of final plat at the rates then in effect.
NEW BUSINESS
CONDITIONAL USE PERMIT -KEYS WELL DRILLING
a~
HPR-03-2003 17 27 DAKOTA COUNTY C:DA
651 675 4405 P.04
DAKOTA COUNTY ADMIN/FINANCE/POLICY COMMITTEE REQUEST ICOR COAdVIITi''EE REVIEW
9.2 -Review Proposed Dakota County Community Development Agency's Tax Increment
Financing R I F} Plan For C.D.A T. I. F. District No. 13 !n The City Of Eagan
Meeting Oate: 3/'! 1/03
Item Type: Regular-Information
Division: PUBLIC SERVICES AND REVENUE
Department: Treasurer-Auditor
Contact: Pam Mattila Telephone: 651-43ti~363
Prepared by: Pam Mattila
Reviewed by: N/A NIA
IrlscaUF7E Impact:
None
Amount inGuded in current budget
Budget amendment requested
FTE included in current complement
Naw FTE(s) requested-N/A
® other
PURPOSE/ACTION REQUESTED
To review the Community Development Agency's (CDA) Tax Increment Financing (TIF) Plan for TIF District No. 13
located in the City of Eagan.
SUMMARY
The proposed TIF district is a small housing district adjacent to another non-TIF CDA development consisting of 34
rental townhome units serving families at or below 60% of the arse median income. The new development is
expected to generate less than $4.5 million over 26 years. The development consists of 60 two-bedroom rental
units and 44 three-bedroom rental units for a total of 104 units. Twenty percent of the units, 12 of the two-bedroom
and 9 of'the three-bedroom, will be for occupancy by low income families, meeting the low income requirement of
at Ieast.20% of the units' rent at or below 50% of the area median income. Ten of the 21 units wilt be targeted
toward very low-income households making the transition from welfare to work.
An additional 60°~ of the units (63) of the project will be moderate-income rent restricted and occupied by
households with income at or below 115% of the area median gross income, If at any time during the term of the
TIF district that requirement is lifted, the moderate-income requirement will be ended. However, an income
restriction for b5% of the units (57) is still required for the duration of the MHFA first mortgage. These units will
serve households at or below SO°~ of the area median income. Twenty-six of the units are not income restricted.
The CDA intends to use $4 million in tax increment and loan repayment from the district to assist other affordable
housing developments. This may include the acquisition of limited partnership interests in other affordable family
projects. and the rehabilitation of such properties.
The CDA is developing a 34-unit townhome development adjacent to, and in cooperation with Shelter Corporation's
Cedar villas project. The CDA development will be 100% affordable to households at or below 60% of the area
median income. The two developments, totaling 138 units, will share roads and amenities. tt is not financially
feasible for Shelter Corporation to increase the number of low-income units in the TIF District 13 development,
without additional subsidy.
!t is also°uncertain as to whether or not the City would support such an increase. The City approved a
comprel~snsive plan amendment and re-zoning, but reduced the number of units from 124 to 104 ahd required an
additional 60 garages. These requirements increased the per unit development cost, reduoed rental income, and
limited the opportunity for additional affordable units.
The transportation department has review the proposed TIF 13. Cedar Avenue and Nichols Road adjacent to the
proposed development are not under County jurisdiction; The nearest county highways are Diffley Road (CSAH 30)
to the north, and Cliff Road (CSAH 32) to the south. Based on the number of units in the proposed development, it
is anticipated that the traffic generated by TIF 13 will have a negligible impact on these county highways.
EXPLAt~,A~ION OF FISCAVFTE IMPACT
The TIFdistrict expects to roceive less than 54.5 million in tax increment from 200b through 2030. Dakota County
will forego 51.34 million in property tax revenue over 26 years.
3!7/03 1:3a PM f~ge 1
t.~windowsltsmplafppmD~9 7-03.aoG .(~ Agenda Ppgp No.
ru n VJ- cVVd 1 (• G( LMI~V I M I.UUIY I T I,LH
651 675 4405 P. d5
Suppo~Inp Documerrts: Pnvioue board Actlon(s}:
Attsschmgnt A: Selected Pages from TIF Man for TIF Distrito 13 - ;
Ril=SOLUTION
Resolution to be presented followin8 the public hearing at the March 25.2003 Board Meeting.
o Reoon~mend Action o County Attorney's OtTice
o Do wort Rewmmend Action o Financial Services
o Revt
-NO Recommendation o Rlsk Management
~
o Revi d-dnform9~tion Only o Employee Relations
0 5ubm~ed et Commissioner Request o Information Technology
0
Clwindowsyl~rtlplatppm03-11-03,doc Apend~ PeQR No.
31
APR-03-2003 17 27 DAKOTA COUNTY CDA
651 675 4405 P.02
DAKOTA COUNTY BOARD OF COMMISSIONERS REOUES7FOR 80ARD ACTION
6.1 -Public Hearing To Receive Comments On And Approval Of Dakota County Community Development
Agency's TaX increment Financing (T t F) Plan For T 6 F District No.131n The City Of Eagan
Meeting Hate: 3/25/03
Item Type: Regular-Action
Division: PUBLIC SERVICES AND REVENUE
Department: Treasurer-AudRor
Contact: Pam Mattila Telephone: 651-436-4363
Prepared by: Pam Mattila
Reviewed by. AFP Committee N/A
FiscallFTE flmpact:
^ None
^ Amount included in current budget
^ Budget amendment requested
^ FTE included in cunent complement
^ New FTE(s} requested-N/A
® Other
PURPOSE/ACTtON REQUESTED
• Conduct public hearing.
• Approve Dakota County Community Development Agency's (CDA) Tax Increment Financing (TIF) Plan for TIF
District No. 13, Cedar Villas, located in the City of Eagan.
SUMMARY
The Treasurer-Auditor received the proposed TIF plan for TIF District No. 13 on February 4, 2003. The district
provides,addi6onal affordable housing for Oakota County. The Dakota County AdministrationlFinance/Policy (AFP)
Committee reviewed the proposed plan on March 11, 2003.
The proposed Cedar Villas TiF district is a small housing district located in the City of Fagan. The development
consists of 60 two-bedroom rental units and 44 three-bedroom rental units for a total of 104 units. Twenty percent
of the units, 12 of thetwo-bedroom and 9 of the three-bedroom, will be for occupancy by low income families,
meeting the low income requirement of at least 20% of the units' rent at or below 50% of the area median income.
Ten of the 21 units will be targeted toward very low-income households making the transition from welfare to work.
An additiona160~ of the units {63) of the project will be moderate-inwme rent restricted and occupied by
households with income at or below 115% of the area median gross income. if at any time during the term of the
TIF district that requirement is lifted, this moderate-income requirement will be ended. However, an income
restriction for 55°k of the tote! units (57) is still required for the duration of the MHFA first mortgage (40 years)- Six
(6) of these units will be income-restricted to households at or below 80°'0 of the area median income; the balance
will be income-restricted to households at or below 10096 of the area median income. Ali of the units (80°~ of the
project units) that do not have the low-income restrictions will have a maximum "market rent" determined by MHFA-
This market rent is set at approximately 30% of 70% of the area median income. 100% of the units in the project
will thus be technically affordable to households at or below 80°~ of the area median income- The CDA intends to
use $4 million in tax increment and loan repayment from the district to assist other affordable housing
developments. This may include the acquisition of limited partnership interests in other affordable family projects
and the rehabilitation of such properties.
The Tran;poRation Department has reviewed the proposed Ttlr plan. Cedar Avenue and Nichols Road, located
adjacent to the proposed development, are not under county jurisdiction. The nearest county highways are Diffley
Road (CS~AH 30) to the north, and Cliff Road (CSAH 32} to the south. Based on the number of units in the
proposed development, it is anticipated that the traffic generated by the Cedar Villas project will have a negligible
impact on these county highways.
In a lette[.dated March 19, 2003, the City of Eagan requested that the County Board continue the public hearing to
no sooner than Apri122 to allow the City Council to review the TIF proposal at their City Council workshop and
meeting ir! April. A copy of the city's request is Attachment C. CDA staff has had several discussions about the
district with the City of Eagan and has made several modifications to the Shelter Corporation's proposal, at the
City's request.
Staff believes that CDA TtF District No. 13 ie consistent with the County's TIF Policy and recommends that the
Hoard adopt the TiF plan.
FXPlANATtON pF FISCALIFTE IMPACT
The TIF district expects to receive less than $4.5 million in tax increment from 2005 through 2030. $1.34 million in
property tax burden will be shifted to properties outside the disVict over 26 years.
324/D~ 4;3t3~ PM Pape 1
c:lwindowaldesklop1pm03-25~03.doc ~~ Ap~nda Pale No.
APR-0'3-2003 17 27 DAKOTA COUNTY CDA
651 675 4405 P.03
.r*uppOrting Docum~nta: Pn-vlous board Action(s):
Attachment A: Selected Pages from Amended TIF Plan for'rIF District 13 03-136; 3/11/03
Attachment B: Affidavit of Publication
Attachment C: City of Esgan Latter ;
RESOLUTION
Approval Of Dakota County Community Development Agency's Tax Increment Financing R I F) Plan For
T 1 F District No.13 In The City Of Eagan
WHERI~AS, it has been proposed and adopted by the Agency that the Agency establish the proposed Tax
Increment Financing District No. 13 and approve end adopt the proposed Tax Increment Financing Plan relating
thereto,•alt pursuant to and 1n accordance with Minn. Stet. §§ 489.174-469.1791, inclusive, as amended; and
WHEREAS, the Agency and the County have performed all actions required by law to be performed prior to
approvil and adoption of tre Tax Increment Financing Plan relating thereto; and
WHEREAS, the County Board r®viewed the proposed amendment at its Administration/Finance/Policy Committee
of the Whole meetin8 on March 11, 2003, and
WHEREAS, the Dakota County Board of Commissioners hereby detemnines that it is necessary end in the best
interest of the County at this time to approve and adopt the Tax Increment Financing Plan relating thereto; and
WHEREAS, on March 25, 2003, the Dakota County Board of Commissioners held a public hearing regarding the
approval of Tax Increment Financing District No. 13, notice of which hearing was published as required bylaw.
NOW, THEREFORE, BE iT RESOLVED, That the Dakota County Board of Commissioners hereby finds and
detennlnes:
. 1. jThat Tax Increment Financing District No. 13 is intended and, in the judgment of this Board, its effect will
be to alleviate a shortage of decent, safe and sanitary heusing for persons of low to moderate income and
their families in Dakota County, and accomplish certain objectives as specified in the Tax Increment
Financing Plan; and
2. That the proposed development, in the opinion of the Board, would not occur solely through private
investment within the reasonably foreseeable future and, therefore, the use of tax increment financing is
deemed necessary; and
3. That the Tex Increment Financing Plan for said Tax Increment Financing District conforms to the
Comprehensive Plan for the City; and
4. That the Tax Increment Financing Plan wiI! afford maximum opportunity and be consistent with the sound
needs of the County as a whole, for the development of TIF District No. 13 by private enterprise; and
5. That the Gounty made the findings stated above and has set for the reasons and supporting facts for each
determination in writing included in the Tax Increment Financing Plan; and
6. That County staff have reviewed the 71F plan and found that it is Consistent with the Dakota County Tax
increment Policy
end
BE R FIdRTHER RESOLVED, That the officers of the Agency are hereby authorized and directed to proceed with
the implementation of the Tax Increment Financing Plan and for this purpose to negotiate, draft, prepare, and
present to its board for consideration alt further plans, resolutions, documents, and contracts necessary for this
purpose.
-.,.
~ .....,,..._......,,.~.~......N.
Recommend Action _.._.. ~, ,..._,_..__,.
d County Attorney's Oifics
O Do Not Recommend Action O Financia~ Services
D Reviewed-No Recommendation O Risk Management
4 Revi~w~ed--nformation Only D Empbyee Relations
O Submitted at Commissioner Request O Information Tectmology
0
clwmdwrslrksktoplpm03-2S03.doc Agenda Page No.
33
CDA Tax Increment
Financing (TIF)
District No. 13
D Dakota County
Community Development Agency
......................
Tax Increment Financing (TIF)
application submitted by:
Shelter Corporation
for
Cedar Villas
in Eagan
~+
Tax Increment Financing District
j j I~ r--
___ I CEilki? nln-?E I I I
-~---
Cedar Villas
i ~ will be located
- _ I
1
1
~
at Erin Drive &
~ ~ -- _1 -~ ~ - ~
- -- -
; ~- Nichols Rd.
t ~ ~ ` in Eagan.
a
~ . tz¢ 'j
I~
~
iii
~ A'~ I u
-'
~
t, . °!~ ;
l East of Hwy. 77
~ _~
~. _ ~ (Cedar Ave.)
,,; ~ ~ South of Diffley
~ __
~~; ~ y~
; , _ & North of Cliff
i
_ ;~
_~ Road
1
i I
I --- ------------_---, I~'
i NiiF2E'i ~.cE 15T nn0ITI0N ~ itAfi ARF.[:5 1 ~~
Cedar Villas
• 104 unit townhome development
• Developed in cooperation with the
CDA's 34 unit development (Cedar
Villas Townhomes)
• Shared amenities (playground, pool,
community room, tot lots, basketball
court)
%: T-l
{7t'N' FXO.NfA'7XXfOR S7Xetf
`r`.
U"'
~ ~o ~ s
I
VItN' FFD.M A'ICOLS P.CfD ~fDE I7EN' ~-
Maximum Income &
Tenant Paid Rents
104 units total '=30% of 70% of area
median income
# of Units Maximum Income Tenant Paid Rent
10 Current or recent Minnesota Family Investment 30% of income
Program (MFIP) participants with incomes not
more than 160% of the poverty level; or
households at or below 30% of the area median
income (MHFA MARIF)
11 At or below 50% of the area median income (TIF, 30% of income
HOPE, MHFA, FHF)
6 At or below 80% of the area median income "Market Reny' determined
(MHFA) by MHFA'
52 At or below 100% of the area median income "Market Reny' determined
(MHFA) by MHFA•
5 At or below 115% of the area median income 30% of 100% of the area
(TIF) median income
20 No restriction "Market Reny' determined
by MHFA'
TIF Assistance
• $62,000 annual assistance for 15 years to
reimburse the owner for interest paid on
MHFA first mortgage.
• $200,000 land loan at 6% interest as deferred
payment on land purchase.
• Both loans together will not exceed 70% of
the total increment available.
• The increment is estimated to be
approximately $120,000 per year.
37
Sources of Financing
MHFA First Mortgage $11,427,051
MHFA-MARIE $1,395,000
MHFA-Challenge $614,731
CDA-HOPE $210,000
CDA-HOME $250,000
Family Housing Fund $320,000
Proposed TIF Land Loan $200,000
Proposed TIF Loan (Project Gap) $587,949
TOTAL $15,013,731
'The CDA is also providing 21 units of Section 8 Project Based Assistance.
Cedar Villas Development
• Creates 21 units of affordable housing for low-income
families.
10 of the 21 units will help Dakota County MFIP clients
make the successful transition from welfare to work.
Project not feasible without TIF Assistance.
3~
Questions?
ay
SEVERSON, SHELDON, DOUGHERTY
& MOLENDA, P.A.
TO: Tom Hedges, City Administrator
FROM: Michael Dougherty, City Attorney
DATE: March 14, 2003
RE: Cedar Villas
Our File No. 0206-19218
Throughout the week, I have been in contact with the State Auditor's office with respect to a Tax
Increment Financing plan being contemplated by the Dakota County Community Development
Agency ("CDA"). It is my understanding that the State Auditor's office will be issuing an
opinion addressing concerns raised by an Eagan Councilmember. While the Auditor's opinion
addresses the CDA's authority in implementing a tax increment plan, there is a tangential
element of which you should be aware.
Historically the county has acted as the housing authority for the City of Eagan. I am not aware
that this has been by a formal appointment, but I understand that in practice the county has
exercised this authority for many years. Under Minnesota Statute Section 383D.41, in instances
where the CDA handles the duties of a municipal housing authority and a housing project is
constructed in Dakota County pursuant to such authorization, the location of the project must be
approved by the City Council. As you may recall in December of 2001, the City Council
approved the location of the housing project on Nichols Road.
Chapter 383D of the Minnesota Statues does not define "project". However, the CDA's
authority is generally those powers set forth in Chapter 469 of the Minnesota Statues. These
powers include housing and redevelopment and tax increment financing which is the subject of
the state auditor's opinion. Under Minnesota Statutes Section 469.002, the term "Project" is
defined to mean a `housing project"; in addition the statute states that the term may also be
applied to all real and personal property, assets, cash, or other funds, held or used in connection
with the development or operation of the project.
Thus, it may be argued, that the CDA, as a designee of the City of Eagan, requires Eagan's
approval for the location where the CDA proposes to use tax increment financing. Essentially,
the project approvals that would need to be obtained from the City of Eagan relate to the location
of the housing as well as the financing component for the project. The funds or other assets used
in connection with the development or operation of the project, may be considered part and
'7~
parcel to the project under Chapter 469. Under the above interpretation of the term "project", an
additional approval by the City could be required prior to the use of tax increment financing for
the Cedar Villas Project.
MGD/j ep
Cc: Gene VanOverbeke, Director of Administrative Services
~I
OFFICE OF THE STATE AUDITOR
PATRICIA AWADA
STATE AUDITOR
March 17, 2003
Councilmember Peggy Carlson
3830 Pilot Knob Road
Eagan, Minnesota 55122-1810
Dear Councilmember Carlson:
I am writing in response to the question you recently posed to the State Auditor's Office regarding the
Dakota County Community Development Agency's potential creation of a tax increment financing district
within the city of Eagan. As I understand it, your concern had to do with Eagan's role in the TIF district
creation process.
Dakota County CDA operates pursuant to special legislation, Minnesota Statutes, Section 383D.41. In most
ways, it is subject to the same restrictions as the majority of county housing and redevelopment authorities
that are created under general state law. For example, if Dakota County CDA wishes to undertake a housing
development, redevelopment, or economic development project within the boundaries of a city, it must
obtain the approval of the appropriate city council with respect to the project's location. Similarly, in the
case of a housing project, Dakota County CDA must also obtain approval of the relevant city's housing and
redevelopment authority, unless that city has previously requested Dakota County CDA to assume
responsibility for housing duties within the city's boundaries.
Once these approvals have been received, Dakota County CDA is not required to obtain further approval
from the city before it creates a tax increment financing district. As a practical matter, some counties will
engage in discussions with the cities for which acounty-created TIF district is proposed, but that is a matter
of policy and not statutorily mandated. As long as the TIF district otherwise complies with the applicable
laws, its creation is left to county discretion.
Your city attorney, Michael Dougherty, and I briefly discussed this last week. At his request, I am providing
a copy of this letter to him.
I hope this information is helpful. If you have additional questions, please feel free to contact me.
Very trulYyours,-
IJ
/ ~'~ J
STATE OF MINNESOTA
suITE aoo
525 PARK STREET
SAINT PAUL. MIV 55103-2139
TIF Direct Dial: (651) 296-4716
TIF Fax: (651) 282-5298
MAR 2 1 2003
(651) 296-2551 (Voice)
(651) 296-4755 (Faz)
stateauditor@osa.state.ttm.us (E-Mail)
1-800-627-3529 (Relay Service)
Daniel J. Greensweig
Assistant State Auditor/Director of Tax Increment Financing, Investment and Finance
Cc: Michael Dougherty
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