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11/15/2005 - City Council Regulari AGENDA EAGAN CITY COUNCIL -REGULAR MEETING EAGAN MUNICIPAL CENTER BUILDING November 15, 2005 6:30 P.M. I. ROLL CALL & PLEDGE OF ALLEGIANCE II. ADOPT AGENDA (At approximately 8:00 p.m. the Council will take a short recess) III. RECOGNITIONS & PRESENTATIONS eZ A. Standard & Poors Credit Rating Upgrade to AA+ (Dave MacGillivray, Springsted) 3 B. Eagan Convention and Visitors Bureau Market Plan and 2006 Budget IV. CONSENT AGENDA ~9A. APPROVE MINUTES ~6 B. PERSONNEL ITEMS ~? C. APPROVE CHECK REGISTERS pagD. APPROVE Dakota Valley Recycling 2006 Funding Application to Dakota County for Community Landfill o Abatement Funds a I E. APPROVE Renewals of Existing Liquor Licenses for 2006 33 F. APPROVE New Tobacco License Croix Oil Company (Croix Convenience Store),1424 Yankee Doodle Road yG. APPROVE Renewals of Existing Tobacco Licenses for 2006 ~,SH. APPROVE Renewals of Existing Trash Hauler Licenses for 2006 6 I. APPROVE Renewals of Existing Pet Shop and Kennel Licenses for 2006 ~~ J. APPROVE Renewals of Existing Tree Contractor Licenses for 2006 3g K. APPROVE Fee of $50 for License to Harbor Carrier /Homing /Racing Pigeons Y3L. AUTHORIZE Central Park Pond No Longer be Designated as a Winter Outdoor Skating Site y M. APPROVE Renewal of Heart Healthy Living Program Agreement for Eagan Community Center ~SN. APPROVE Recommendation for 2006 Holiday Hours at the Eagan Community Center j~ ~6 O. APPROVE January Fitness Membership Promotion for the Eagan Community Center /b ~' P. APPROVE Modification of Hours at Cascade Bay for the 2006 Season ~~" t~~ Q. ACCEPT Donation of Three (3) Trees from Richard Grundman for Placement in George Ohmann Park /~ R. ACCEPT Contribution from Eagan Teen Advisory Board Fundraising Campaign for Oasis Teen Center r ~~ S. ACCEPT 20/20 Vision for Parks, Recreation and Open Space Document as a Guide for Future Planning '~S~ T. APPROVE Final Plat -Murphy Larsen Estate- A Final Plat of Approximately .98 Acres to Create a Single Family Lot located at 4261 South Robert Trail in the NE '/< of Section 25. ,53 U. APPROVE Final Subdivision and Final Planned Development- Nicols Ridge 2°d Addition- A Final Subdivision (Nicols Ridge 2nd Addition) for phase II and Final Planned Development to create 16 Lots and 1 Outlot (4 buildings 4 units each) for property in the SW '/< of Section 19 south of Cedarvale Mall. p,SSV. REFER Business Assistance Policy and Public Financing Assistance Policy Updates to Council Finance Committee / 56W. APPROVE Final Payment for Contract OS-06 (I-35E Crossing at Duckwood Drive/Pearlmont Heights/Quazry Pazk - Trunk Water Main) r APPROVE Final Payment for Contract OS-O1 (City-Wide Street Overlays) Y. ACKNOWLEDGE Completion and Authorize City Maintenance for Four Private Developments (Projects 02-B, Oakbrooke 6th Add; 02-P, Woodgate Cove Add; 02-U, Waters Edge Add; 02-V Eagan Heights 3`a; 04-F, Long Acres 1s1 Add) 5 9Z. APPROVE Traffic Signal Signing, Striping and Lighting Maintenance Agreement with City of St. Paul t~p6 () AA. APPROVE Extension of Development Contract Completion Date for Project 03-N -Nicols Ridge Addition /p 6 e1 BB. APPROVE Withdrawal of Minnesota Pollution Control Agency Contested Case Hearing Request (NPDES Phase II / - MS4 Permit) ~b 3 CC. RECEIVE Feasibility Report and Schedule Public Hearing (December 20, 2005) for Project 888 (Cedar Grove Parkway -Trail and Lighting Improvements) ~o~pti/ DD. RECEIVE Feasibility Report and Schedule Public Hearing (December 20, 2005) for Project 931 (Kathryn Circle/Hillandale/Meadowlark Road -Street Overlay) ~~EE. RECEIVE Feasibility Report and Schedule Public Hearing (December 20, 2005) for Project 932 (Whispering Woods/Slater Acres/Slater Road -Street Overlay) 66 FF. APPROVE Easement Agreement with Silver Bell Business Center for Project 800R (Cedaz Grove Redevelopment Area -Street Improvements) V. PUBLIC HEARINGS 6 ~ A. VACATION of Public Drainage & Utility Easement, Kennerick Addition; Final Plat -Gail McMahon - A Final Plat to Ceate Two Lots Located at Lot 1, Block 2, and Outlot C Kennerick Addition in the SE '/, of Section 4 1 r B. VACATION of Public Drainage & Utility Easement, The Oaks of Bridgewater 2°d Addition. VI. OLD BUSINESS A. UPDATE REGARDING APPLICATION -Paster Enterprises, LLC. A Comprehensive Guide Plan Amendment of approximately 24 acres from Special Area -Office/Service to Special Area-Commercial Retail located in the SE '/, of Section 9. B. FINDINGS OF FACT FOR DENIAL -Adopt Findings of Fact for Denial of Planned Development Amendment - Attracta Sign -John Deere. ~gC. RECEIVE COUNTY PLAT COMMISSION ACTION -County Road Access, Diffley Market Place, and provide direction regarding City response to resolve access and circulation issues. VII. NEW BUSINESS f (' A. CONSIDER APPROVAL of Settlement Agreement- Wennsman vs. Eagan ' f a VIII. LEGISLATIVElINTERGOVERNMENTAL AFFAIRS UPDATE IX. ADMINISTRATIVE AGENDA A. Comments by City Council, City Administrator, and Department Heads 't 3 X. ECONOMIC DEVELOPMENT AUTHORITY P The Council acting as the Board of Commissioners of the Economic Development Authority (` EDA') may discuss and act on the agenda items for the EDA in conjunction with its actions as a Council. A. CALL TO ORDER B. ADOPT AGENDA P ~ (~'I C. APPROVE MINUTES D. OLD BUSINESS E. NEW BUSINESS ~ ~ ~ 1. CEDAR GROVE REDEVELOPMENT DISTRICT -Receive Draft Development Agreement for Schafer Richardson to Act as Master Developer of the core Redevelopment Area and Schedule a Public Hearing for the Consideration of Agreement on December 20, 2005. F. OTHER BUSINESS G. ADJOURNMENT XI. VISITORS TO BE HEARD (for those persons not on agenda) XII. CLOSED SESSION XIII. ADJOURNMENT The City of Eagan is committed to the policy that all persons have equal access to its programs, services, activities, facilities and employment without regard to race, color, creed, religion, national origin, sex, disability, age, marital status, sexual orientation, or status with regard to public assistance. Auxiliary aids for persons with disabilities will be provided upon advance notice of at least 96 hours. If a notice of less than 96 hours is received, the City of Eagan will attempt to provide such aid. 1~°~_. ~d ' '. -~ 1 ADMINISTRATIVE AGENDA REGULAR CITY COUNCIL MEETING EAGAN, MINNESOTA NOVEMBER 14, 2005 CITY ATTORNEY CITY ADMINISTRATOR Item 1. Informative Items DIRECTOR OF PUBLIC WORKS Item 1. Contract 03-09, Change Order #13 (Water Treatment Plant Expansion) DIRECTOR OF COMMUNITY DEVELOPMENT Item 1. Redevelopment District Update Item 2. Development/Construction Activity City of Eagan demo TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: NOVEMBER 14, 2005 SUBJECT: ADMINISTRATIVE AGENDA /NOVEMBER 15, 2005 CITY COUNCIL MEETING CITY ATTORNEY The City Council reserves the right to hold an Executive Session for the purpose of discussing any pending or threatened litigation or matters of personnel. It is anticipated that there will be an Executive Session for an update on the Cascade Bay litigation. CITY ADMINISTRATOR There are no formal action items. Item 1. Informative Items • Data Practices Request -Enclosed on pages ! ~~ through~is a copy of a letter that was submitted by Eric Hedtke requesting data on the Minnesota Government Data Practices Act. There is no review or response required by the City Council. This data practices request is provided for informative purpose only. 11.5 Mile Conduit Business Plan Analysis -Enclosed on pages ~ through L~ is a copy of a memo from Director Garrison that provides a brief summary/update on the status of developing a business plan for the proposed construction and installation of the 11.5 miles of conduit. Recently, the City of Eagan became aware that the City of Burnsville has retained a consultant, Dynamic Cities, to study the feasibility of a fiber optic network for its entire business and residential community and report back by the end of January. The consultant they are using is one of the qualified firms Eagan would consider for the conduit analysis. Proposed in the 2006 budget is an amount of $49,500 to perform the detailed engineering and marketing analysis necessary to produce the business plan. Because Dynamic Cities will be working in Burnsville, they have offered to prepare a business plan for Eagan's 11.5 miles of conduit route for $21,500, approximately half of what other experts suggested the business plan analysis would cost. The City Council is suggesting that the 11.5 miles of conduit would be a Public Enterprise operation. For a copy of the proposal from Dynamic Cities, refer to pages ~ through 1(~Q. ls~ DIRECTOR OF PUBLIC WORKS Item 1. Contract 03-09, Change Order #13 (Water Treatment Plant Expansion) - Contract 03-09 provides for the expansion and renovation of the existing north Water Treatment Plant located on Coachman Rd. This contract was awarded in July of 2003 and the construction has been certified as complete except for minor punch list and warranty items. This final change order has been prepared to address all unresolved issues that arose during the progress of this contract. Many of these items have been negotiated in an effort to close out this contract. Change Order #13 subsequently consists of the following items (Note: Parts that result in no change to the contract amount are not listed here): • Part 1: Furnish and install motorized trolley/hoist systems to the chlorine and potassium room hoists. (ADD $4,860) • Part 2: Delete transom light at main entry door and replace with standard wall section. (ADD $89) • Part 3: Modifications to the layout of equipment and piping within the converted boiler room had to be modified to fit the specified equipment delivered to the site. (ADD $10,343) • Part 4: Install a toe plate in the plate settler area to meet code requirements. (ADD $364) • Part 5: Install additional cement grout on the clearwell buried reservoir floor to provide proper drainage to the reservoir sumps. (ADD $22,991). • Part 6: Install additional protection to prevent undermining of the existing building foundation during the construction of the clearwell. (ADD $4,600). • Part 7: During the excavation of the mast footing (NE corner of new building) the Contractor encountered a large amount of water coming from an unknown source underneath the existing building. Grout was pumped into the void to protect the existing foundation. (ADD $7,000) • Part 8: Provide gypsum board covering, framing, and finishing for fire draft curtains at the lower elevator lobby area. . (ADD $294) • Part 9: Provide gypsum board covering, framing, and finishing at various window jambs. (ADD $448) • Part 10: Provide gypsum board covering, framing, and finishing around the main entry door jamb. (ADD $223) • Part 12: Numerous changes had to be made for the structural roof control joints. (ADD $2,246) • Part 13: Safety Closures were added to doors 130 and 156 to comply with code requirements. (ADD $943) • Part 15: Offset 12" recycle line to avoid conflict with new pipe run. (ADD $1,260) • Part 17: Provide conduit for the effluent chlorine equipment (ADD $516) • Part 18: Additional signage and changes to the plaque size from what was detailed in the project specifications (ADD $544) • Part 19: Weld siphon pipe extensions in lieu of chalking. (ADD $1,000) • Part 20: Apply white PVC jacketing to all exposed chilled water piping, a white vapor retarder to concealed chilled water piping, miscellaneous repairs for insulation integrity. (ADD $62,474) • Part 22: Add curb swale near existing gas pumps to improve the drainage near the existing gas pumps(ADD $735) • Part 23: Eliminate polymer containment basins and ramp. (DEDUCT $300) • Part 24: Credit for deletion of painting the exposed galvanized ductwork in the new filter area and meter repair room. (DEDUCT $5,800) • Part 26: Route a copper condensate drain line for Make-up Air Unit (MAU-3). (ADD $1,114) ).~ 3 • Part 27: Various lighting fixtures were changed at the front lobby area and on/off switches added for two exhaust fans. (ADD $1,336) • Part 29: Provide proper wiring to the solenoid valves that controlled the check valves on the high service pumps. (ADD $588) • Part 30: Provide PVC piping modifications and an air release valve on the plate settler sludge line to allow better piping operation. (ADD $3,423) • Part 31: The chlorine monorail was extended out on the exterior of the building to better allow chlorine cylinders to be lowered onto the Chloratainer assembly trailer. (ADD $1,787) • Part 33: Add catch basin structure at north garage entrance to improve drainage in this area. (ADD $3,442) • Part 34: The overhead garage door electrical control design required modifications to improve operation. (ADD $940) The net total of this change order is an ADD of $127,460 (0.87%) to the original contract amount ($14,620,958). If approved, the total of Change Orders 1-13 will be $696,919.02 (4.76%). This compares to a 10% contingency contained in the feasibility report's preliminary cost estimate of $17,400,000 and a 5% contingency used upon receipt of bids. All work and costs associated with this change order have been reviewed by the consultant and Public Works Dept. and found to be in order for favorable Council consideration. ACTION TO BE CONSIDERED: Approve Change Order #13 to Contract 03-09 (Water Treatment Plant Expansion) and authorize the Mayor and City Clerk to execute all related documents. COMMUNITY DEVELOPMENT DIRECTOR Item 1. Redevelopment District Update -Staff is providing regular updates to the City Council regarding the City's redevelopment districts as a part of each administrative agenda. In addition to the information enclosed on page ~, staff will be available to provide comments or respond to questions relative to the redevelopment projects at Tuesday's meeting. Item 2. Development/Construction Activity - Per the Council's request, Community Development staff will provide bi-weekly updates of larger development and construction activity. The current update is enclosed on page,{. /s/ Thomas L. Hedges City Administrator Isy- November 10, 2005 Ms. Mira Pepper City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 Re: Data Request Dear Ms. Pepper, Pursuant to the Minnesota Government Data Practices Act, I am requesting to review the following data: 1) All invoices or billing records of the Eagan City Attorney's office relating to the Eagan Charter Commission and lawsuits concerning the Eagan Charter Commission; 2) Communication requesting the Opinion of Jack W. Clinton regarding the expenses of the Eagan Charter Commission; 3) All invoices or billing records of Jack W. Clinton since 1995; 4) All communication, between Jack W. Clinton and the City of Eagan or the Eagan City Attorney's office since 2000. I am not requesting to review any data between Jack W. Clinton and the City Attorney's office that does not concern the City of Eagan or the Eagan Charter Commission; 5) All data relating to the City Council discussion and decision to contact the State Auditor's Office regarding the Eagan Charter Commission expenses, this includes, but is not limited to, notes made by City officials and employees; 6) All data relating to the City Council directing the City Administration to contact the State Auditor's office regarding the Eagan Charter Commission, this includes, but is not limited to, notes made by City officials and employees; 7) All communication City staff and City officials have had with the State Auditor and State Auditor's office since December 1, 2004; 8) All data relating to a decision on whether to contact the Minnesota Attorney General's office regarding the Eagan Charter Commission; 1~ ,`~" Ms. Mira Pepper November 10, 2005 Page 2 of 2 9) All communication between the City or Eagan City Attorney's office with the Minnesota Attorney General's office relating to the Eagan Charter Commission or charter cities generally; 10) All communication between the Eagan City Attorney's office and Paul Bakken or Wayne Gilbert since January 1, 2003; and 11) All communication related to responding to this request. This request includes existing data and data that is created through the date on which the data is available for review. For the purpose of this request, "communication" includes, but is not limited to letters, memos, notes, e-mails, phone messages, and voice and numeric messages on telephones and cellular phones. This request includes data that may be maintained outside the City of Eagan by the Eagan City Attorney's office, Jack W. Clinton, or the homes, home computers, and phones of City officials and staff. Please notify me at erichedtke(a?comcast.nettyhen this data will be available for my review or if you need any clarification regarding this request. Sincerely, ice, V Eric L. Hedtke ~ ~J City of Eagan Mcmo To: CITY ADMINISTRATOR HEDGES From: COMMUNICATIONS DIRECTOR GARRISON Date: 11/14/05 Subject: OPPORTUNITY TO SAVE MONEY ON BUSINESS PLAN FOR 11.5 MILE CONDUIT ROUTE IF WORK DONE IN 2005 INSTEAD OF 2006; REQUEST FOR DIRECTION Part of the 2005-2006 work plan for the Technology Working Group is to produce a formal business plan for how the City of Eagan can best recoup its investment in an 11.5 mile conduit route, and maximize future revenues from this investment in infrastructure for the technology needs of the community. The Communications Department included $49,500 in its proposed 2006 budget for the detailed engineering and marketing analysis necessary to produce the business plan. Subsequently there were questions at a Council workshop seeking more detail on the type of analysis to be done and how the City could recover not only the cost of its investment in the conduit installation, but also the costs for the consultant's business plan. Director of Administrative Services VanOverbeke and I are preparing additional research to come back to the December 12 workshop regarding cost recovery on consulting services for the Technology Working Group. Recently, however, the City of Eagan became aware that the City of Burnsville has retained a consultant to study the feasibility of a fiber optic network for its entire business and residential community and report back in February. The consultant they are using is one of the qualified firms Eagan would consider for its 11.5 mile conduit analysis. This consultant, Dynamic Cities, is a recognized industry leader and presented at a national conference on best practices attended by Directors Hohenstein and Garrison last spring. Because Dynamic Cities is going to be in Burnsville anyway doing its analysis, they have offered to prepare the business plan for Eagan's 11.5 mile conduit route for $21,500-less than half of what other experts suggested the business plan analysis would cost-if Eagan is willing to begin that work in 2005 and not wait until 2006. In addition, and for no extra cost-they will complete the same fiber optic network feasibility analysis for all of Eagan as Burnsville will be receiving. But they would need to know by the end of November if we are to capture the efficiencies in price. As franchise fees would be used to pay for this analysis whether in 2005 or 2006, it would seem to make little difference if Eagan were to begin this study in December to l~~ take advantage of the cost efficiencies. Kevin Hansen, principal technology architect for Thomson West, and member of the Technology Working Group, offered this comment about the "promising" offer received from Dynamic City: "The City will be able to get an analysis of use and best practices for the conduit, examine economic feasibility of fiber to the home, and get it for less than what is budgeted for '06 to just do the conduit analysis. I recommend the Council take advantage of this offer. " Eagan has also obtained a copy of a white paper provided to the Burnsville City Council that asks for an analysis to be done right away to understand "more about the economic impact the build out of a community-wide fiber optic network might have" for both residents and businesses. It concludes that the "existence of a `true' fiber optic network would be very significant to the marketing efforts of the Burnsville Medical Alliance, for example." The Burnsville white paper further includes this "ends and outcomes" statement: "Access to high speed communication is critical to the future economic success of Burnsville. The City wants to ensure that businesses and residents are attracted to Burnsville because of a visible commitment to technology that supports an enhanced quality of life." Burnsville is discovering various service delivery models that could achieve the desired outcome. In summary, if Eagan is prepared to give direction to proceed now, it can: 1. Save $28,000 from the original budget estimate; 2. Get ajump-start on receiving a business plan earlier; 3. Stay current with what other cities are doing to maximize their competitiveness; 4. And get astate-of -the art analysis of how to bring truly high speed Internet service to Eagan. Please let me know how you would like to proceed. ~~ Conduit Ring Utilization Analysis and Open Communications Fiber-to-the-Home Infrastructure Analysis Proposal for The City of Eagan Pursuant to the needs of the City of Eagan and in consideration for their desire for analysis on how to best utilize an existing 11.5 mile conduit ring throughout the city, DynamicCity will complete a study for the City according to the following: Study Objectives • Analyze potential use and best practice for conduit ring and make recommendations based on findings • Develop model scenarios for an open infrastructure network in the City of Eagan and identify the best leverage for the conduit ring • Explore economic feasibility of open infrastructure fiber-to-the-home and fiber-to- the-business network city-wide throughout Eagan Timeline and Meetings • Deliverables and work sessions to be completed from November 21, 2005 to February 28, 2006, including: o Kick-off meeting (1/2 day meeting) o Revenue analysis (1/2 day meeting) o Architecture and Technology discussion (1/2 day meeting) o Cost analysis (1/2 day meeting) o Final presentation, public relations issues and wrap up (1/2 day meeting) NOTE: All timelines are dependent on timely delivery of required City GIS data. Delays in receiving data will result in corresponding delays of project completion. Deliverables Eagan Deliverables to DynamicCity • Current City-owned network GIS map, strand count, including information regarding the City I-Net (if applicable) • GIS data of entire City--should include the following data sets of all cities and the entire county in shape files: o Parcels o Streets (with labels) o Boundaries o Zoning (if possible) o Utilities (if possible) Y s.~_.~:~~~. ;sc~~ r' ;~c€. ~~.r,-;iX ~~~c3 :;r~rr:~:€ ~ ;€€ ~~~::~~€• 1_~v~o:~ ?:~~r.~~:. ~:€ef~2 DynamicCiry Deliverables to Eagan • Recommendation on use of the existing 11.5 mile conduit ring • High-level cost/revenue model for the open infrastructure case o Cost Analysis - • Map fiber routes for 2 sample footprints) • Forecast cable distances for entire city Project costs for all necessary electronics Forecast construction and labor costs Establish base assumptions and forecast operating costs o Revenue Analysis - • Identify possible services and providers for public/private partnership • Project subscriber and service adoptions based on demographics and extrapolated from research in other markets • Develop revenue projections Provide comparisons with existing network performance in other markets • Study and education sessions with City staff and elected officials, plus presentation of final report to key City stakeholders (as described above in Timeline and Meetings) • Electronic copy of final detailed analysis and presentation in a slide deck Agreement Consideration • Approximate value of the open infrastructure case is $75,000 • $21,500 paid by the City of Eagan for work performed 0 50% up front, 50% upon completion of work • DynamicCity contribution to the study is $53,500 • Pending results of initial study, the City of Eagan makes best efforts to move to business case, financing and implementation ' A "footprint" is the fiber and electronics infrastructure connecting approximately 1,000 premises in the city. These premises are aggregated to a community cabinet. Y ~~. :=i.~,,;r~7 r~ ~oi.x-t:~.r;c}~ /~~ ~~•.y..~~~~^c~~r~~~s~ L~~ra~~~ ::r~t.~~. ~~~~;~2 City of Eagan demo TO: TOM HEDGES, CITY ADMINISTRATOR FROM: JON HOHENSTEIN, COMMUNITY DEVELOPMENT DIRECTOR DATE: NOVEMBER 14, 2005 SUBJECT: REDEVELOPMENT DISTRICT ACTIVITY UPDATE The following update reflects activity in the City's redevelopment districts. Cedar Grove Redevelopment District • Schafer Richardson Ryland Development Agreement -The development agreement is being presented at the November 15 EDA meeting to permit the Council to set the public hearing and begin the formal review and input process into the agreement and the plan. The preliminary schedule would be to consider the item in detail at the workshop meeting of December 12 and to hold the public hearing at the City Council meeting of December 20. • Acquisition and Relocation Plans -Negotiations aze underway with the owners of several properties in the Cedar Grove Area and additional owners have contacted staff with preliminary interest in discussing possible sales. • Communications Activities -The Cedar Grove Gateway, the monthly newsletter update, is being distributed to businesses in the area. Website updates also continue. Northeast Eagan Redevelopment District • Grand Oaks Development -The first second building in Grand Oak 5 is nearing completion and tenants are likely to begin moving in soon. Construction is continuing on the Eagle Valley Bank. • McGough Office Project -The neighborhood meeting to discuss acquisition and development plans in the Blue Gentian Road area is scheduled for November 16. • Hwy 55 Parcels -DART Transit, the owner of a substantial number of the properties in the portion of the District south of Hwy 55 has indicated an intention to prepare a developmentlredevelopment plan for that part of the district. Staff has followed up with the DART representative, but have yet to receive additional information from them. Southeast Eagan Masterplan • LHB has completed the field work for the substandard analysis for properties in the southeast area, which will serve as the basis for the Council's consideration of whether to create a formal redevelopment district in the area. The draft report is expected in the near future. /~~ City of Ea~afl Ncmo TO: Jon Hohenstein, Community Development Director FROM: Dale Schoeppner, Chief Building Official Mike Ridley, City Planner DATE: November 9, 2005 SUBJECT: DevelopmentlConstructiion Activity Update The following update reflects recent activity in the Building and Planning Divisions. Permits Issued Address Explanation Valuation Type • 3277 Sun Dr Blue Rhino Studio $ 805,000 Comm New • 3070 Lunar Lane T-Mobile $ 128,000 Comm Impr • 3352 Sherman Ct Advantage Funding Group $ 119,000 Comm Impr Development Update - Staff has met recently with representatives from Revestors regarding their development of the Oberg property. Development plans are being finalized and planning applications are expected in December or January. Staff will be happy to provide a brief overview of these items and/or respond to questions at Tuesday's meeting. As always, staff is available between meetings to respond to questions that may come to Council members' attention from the community. r ~~ City of Ea~au Demo To: HONORABLE MAYOR & COUNCILMEMBERS From: CITY ADMINISTRATOR HEDGES Date: NOVEMBER 10, 2005 Subject: AGENDA INFORMATION FOR NOVEMBER 15, 2005 CITY COUNCIL MEETING ADOPT AGENDA After approval is given to the November 15, 2005 City Council agenda, the following items are in order for consideration. Agenda Information Memo November 15, 2005 Eagan City Council Meeting Recognitions & Presentations A. Standard &Poors Bond Rating Upgrade to AA+ *** NOTE: Because the plaque will not be completed in time, this presentation has been postponed to the December S Council meeting. *** ACTION TO BE CONSIDERED: • No action is required. FACTS: Standard &Poors (S&P) recently upgraded the City's bond rating from AA to AA+. S&P's rating is now on par with Moody's Aal rating of City bonds-both are one step below the highest rating offered by the fines. Dave MacGillivray, Chairman of Springsted, Inc., the City's financial advisor on bond issues, will present a plaque to the Mayor recognizing the ratings upgrade. Mr. MacGillivray will also review and comment on the ratings upgrade report issued by S&P, and will be available to answer questions. ATTACHMENTS: • None. Agenda Memo Regular City Council Meeting November 15, 2005 RECOGNITIONS & PRESENTATIONS: B. Eagan Convention & Visitors Bureau Market Plan and 2006 Budget ACTION FOR CONSIDERATION: Approve Eagan Convention and Visitors Bureau 2006 Budget. FACTS: • At its September 27, 2005 board meeting the ECVB Board adopted a 2006 marketing plan and budget. • By agreement, renewed in October 2002, the Eagan Convention and Visitor's Bureau promotes the City as a tourist, conference, meetings, and visitor destination. Its funding source is primarily the City's local lodging tax, supplemented by a small amount of advertising and partnership income. • For the first eight months of 2005 though September ECVB revenues were $20,000 ahead of projections and 2005 occupancy rates are above those of last year. • 2005 has been a year of transition. Longtime ECVB Director Ann Carlon departed in late June and an interim director, Dick Haskett, former Assistant Director of the Minnesota Office of Tourism, was hired to maintain momentum while a search for a permanent replacement continues. • The 2006 budget, therefore, is essentially a maintenance budget until the new director is in place and can finalize additional details of the plan. • The budget is a 3% increase over 2005. • While comparative analysis with other visitors bureaus indicates that ECVB staff size maybe somewhat low relative to its overall budget, any decisions in that regard have been left to the new executive director subject to ECVB board approval including representatives from the City. • Marketing priorities for 2006 include continuing to capitalize on the "Eagan Extreme Team" branding and great customer service while extending its reach via electronic communications rather than more expensive printed information. • Communications Director Garrison and Chief Financial Officer Pepper have reviewed the budget and marketing plan. • ECVB Interim Director Dick Haskett and Director Garrison will make a very brief presentation and overview and then answer any questions. . ATTACHMENTS: • Letter from ECVB Board Chair Mercord on page • Highlights and ECVB Budget on pages • 2006 ECVB Marketing Plan on pages ~~. 3 October 4, 2005 Mr. Tom Hedges, City Administrator City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 :1501 Central Parkway Eagan,:. MN 55121 Phone:'651-675-5546 Fax:. 651-675-5545 d ,.. t. 1-866-PAGAN-20 1-800-EAGAN-20 ~" www.ea~gamm~.com Dear Mr. Hedges. Thank you for allowing an extension of the deadline for the Eagan CVB Board of Directors to submit its 2006 work plan and 2006 budget to the City. As you know, this has been a time of transition for the Board and we needed extra time to prepare the documents. You will probably notice that, except for some formatting and organizational changes, the work plan repeats many elements of the 2005 work plan. In part this is due to the success of the current approach but it also reflects the Board's desire to involve its new executive director in finalizing the details of the plan and in its execution. The budget also appears in a new format developed with the able assistance of Tom Pepper. The budget is a 3% increase over 2005 and is allocated to match marketing priorities and approaches. It also places greater emphasis on personal service to customers, a fiscal recognition of the CVB "Eagan Extreme Team" branded campaign. Lastly, the budget reflects the growing trend toward consumers and trade dependence upon electronic rather than print information. Please let me know how the Board and I can help with the City's deliberations over these documents. 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O1 c `1 C N > m ~ m of ~ m ~ f0 m p O c ~, - 't m " 1-~C7Q~~w0 h o 0 0 0 0 o rn h ~ ~ N ~ ~ ~ C omi O o!f ~ .U ~ co N a 3 N c 0 ~, ~ N ~iiTi o~ Q N a d c~ ~- ~ J ~- a~ H .a.~oQ ~ Nao L0 N m c.ma ,,> y0a Qcd Rp.oL dHQ d r a m >~ m a °~ n o ~ x ~ m'c~ :,> rnp~U ~W EEH~ ym•co~ td d m j L L m C L L L ~~rn0 UUaaO 00 H o o rn ~ o 0 o rn ~ o ~occ ~c ~~~r ~ Eagan Convention & Visitors Bureau 2006 Marketing Plan 8' Overview The 2006 Marketing Plan of the Eagan Convention & Visitors Bureau was prepared during a period of transition for the organization and is essentially a continuation of the major initiatives and practices described in the 2005 plan. On June 30, 2005 founding Executive Director Ann Carlon left the CVB after nearly twelve years of service. While the Board of Directors sought a replacement, an Interim Executive Director was engaged to maintain operations and assist with planning for the future of the now mature CVB. Both in general and in its specifics, this plan continues the CVB's already highly successful work through the coming period when major changes are anticipated as a new executive is recruited and the Board evaluates strategies for future operations, growth and marketing. The Basics The Eagan CVB's Articles of Incorporation declare its purpose as: "...promoting Eagan, Minnesota as a major conference, meeting and tourist and visitors destination." The CVB's Bylaws declare its purpose is: "...to promote Eagan as a year-round Business and Leisure destination to domestic and international travel markets, generating a greater economic impact on the Eagan area, thus enhancing the Quality of Life for all residents." This same statement is used as the CVB Mission Statement in the 2004 Annual Report. In order to carry out this purpose and mission the CVB and City of Eagan have entered an Agreement in which the scope of services to be performed is described as: 2.1 The Bureau will provide sales and marketing services to attain the maximum benefit for the City's businesses and the maximum usage of the City's hospitality industry. 2.2 The Bureau will provide support for the City events which promote the City as a destination for visitors. For purposes of this Agreement, a visitor or tourist is def ned as anon-resident of Eagan who spends time or money within the borders of the City. 2.3 The activities performed by the Bureau shall include but shall not be limited to the following: a) Perform and provide services necessary to promote the City as a visitor destination and as a place for conferences, trade shows and other events; b) Produce and distribute Eagan promotional visitor information; c) Prepare and present presentations to groups to attract visitors to the City; 9 d) Plan, coordinate and conduct programs that attract visitors to the City and: e) Participate in the enhancement of community amenities that directly impact tourism. 2.4 The Bureau shall implement such services from time to time as directed by the City in a duly adopted resolution. 2.5 The Bureau shall not provide any service for booking arrangements or accommodations for travel and hotel stay. 2.6 The Bureau shall not undertake any activity that conflict with or reasonably appears to conflict with its rendering of service to the City under this Agreement." Organizational Structure In order to carry out its purpose, mission and obligations the CVB is structured into four major activities: Administration Leisure Travel Marketing Meeting/Corporate Travel Sales Public Relations & Group/Sports Travel Sales While staff functions may overlap in some instances and there is significant cooperation between staff members when situations warrant, the CVB's organizational structure is exactly parallel to these four activity areas. This plan covers all activities except administration of the CVB. For the most part, the Eagan CVB markets a suburban community immediately adjacent to a metropolitan area to leisure and business travelers. The community ha a strong suburban mix of lodging properties. '2" /D The Eagan Extreme Team While residents and businesses seek to differentiate Eagan from other similar communities and products; the community lacks a single physical unifying and distinguishing characteristic around which it might wrap an unforgettable marketing theme. This is a community with no widely defining image such as "Land of 10,000 Lakes," "Big Sky Country," or "Land of Enchantment." However, with the two year 2002 "E&E" campaign and its current derivative "Eagan Extreme Team" theme, the CVB has articulated its unique commitment to clients and customers. Whatever it takes, however it has to happen, the CVB will go to extremes to bring business into Eagan. The Eagan Extreme Team is based on the simple principle that, "You only sell to people you know," All marketing efforts an~re therefore based on getting to know more people who are likely to travel to Eagan. While these may be thousands of leisure traveers who make independent travel and spending decisions. Much of the work of the CVB is directed at people who decide where groups, teams, businesses go. More than half of CVB marketing efforts are directed at these decision makers. The "Eagan Extreme Team" theme suggests a certain amount of "in your face" presence in the marketplace. The jagged, angular logo design, the garish colors featured in ads and promotional materials and the energetic presence of staff and the Extreme Team cruiser at sales calls, events, shows and meetings all suggest an effort to attract the attention of decision makers who are being served vanilla by competing organizations . The campaign's success comes, not in calling attention to Eagan, but in the prompt, lively and attractive responses generated by Eagan's businesses, attractions, events and community and transmitted to inquiries by the CVB. Being known and remembered by buyers of travel products is the first half of the role of CVB. Responding with outrageously attractive "Extreme Team" information and service is the second. This 2006 Eagan Convention & Visitors Bureau Marketing Plan is formulated to continue the Eagan Extreme Team theme into its second year. Thus it continues the 2005 goals which are -3- • To establish identity and location in the minds of potential travel buyers • To develop awareness of the Extreme Team as the travel buyers best source of quality service and products. • To develop relationships that sustain established markets and develop new ones • To provide exceptional service when inquiries and leads are received • To deliver a memorable travel experience To accomplish these goals the CVB will continue to utilize the following marketing strategies during 2006: • Identify and pursue niche, family, corporate and sports audiences • Develop marketing partnerships to expand the Extreme Team message • Organize family-friendly events and invite visitors and planners to experience Eagan • Capitalize on the Internet travel boom with expand website based marketing • Be alert to new opportunities and take advantage of them. /~ Leisure Travel MarketinE Paid print advertising in targeted domestic markets such as: AAA Home & Away Area Woman -Duluth Area Woman -Fargo Area Woman -Sioux City BEST Twin Cities Country Home Magazine Eagan Telephone Book Fargo Forum Summer Vacation Destinations FM Greeter -Fargo Grand Forks Herald Destinations Milwaukee Journal Midwest Living Minnesota Family Minnesota Getaways-Fall Minnesota Explorer Summer Minnesota Explorer Autumn Minnesota Explorer Winter Minnesota Parent More Magazine Rochester Visitors Guide Saint Paul Visitors Guide USA Weekend Paid print advertising in targeted international markets such as: German Magazine Japanese Globe Trotter Magazine TIA See America Paid print advertising through cooperative marketing partnerships such as: Metro Co-op Marketing Partnership Minneapolis South Co-op Marketing Partnership Partnership with Eagan Hotels Partnership with Eagan Parks & Recreation Promotional Shuttle advertising Consumer Sports, Vacation and Travel Shows such as: Madison Travel Show LaCrosse Travel Show -5- ~~ Duluth Travel Show Twin Cities Children's Expo Travel Information Center: Continue affiliate EMT TIC certification Brochure Produce and distribute promotional consumer brochure/CD Direct Mail Distribution of CD to qualified mailing list. Relationship Marketing Sales calls on state and other TICs distributing Eagan information Sponsorship of EMT Travel Institute Conduct Eagan Ambassadors customer relations training Sales calls on Concierge Association Develop Ambassadors in other cities Deliver Extreme Team service to travelers and potential travelers Maintain active memberships and/or participation in organizations and events driving consumer travel marketing such as Hospitality Minnesota Minnesota Association of Innkeepers Twin Cities Tourism Attractions Association Market Major Eagan Community Events such as: Home & Leisure Show Eagan Arts & Crafts Festival July 4`h FunFest Lone Oak Days Eagan Cruise Night Market Area Events and Attractions through promotions such as: Mall of America coupon books Maps -Twin Cities, Lions Club, Tear-Off Maps All About Chicago -Girl's Getaways TV Program Girlfriends Getaways /Best Friends Weekends Tickets to concerts and weekend certificates Hunting & Fishing Opener packages for women Geocache promotions -6- Promotional items: Postcards, logo-items, bags, etc. Eagan Extreme Team Cruiser Postcard mailing, advertising to tie to web-based marketing Advertising on trucks in Des Moines and Madison Radio promotions such as trade-outs Advance Internet Consumer Marketing such as: Continuous updates and upgrades to www.ea~amm~.com Internet Hosting &Updates-Search Engine Optimization Keyword buys on Google/Yahoo Explore Minnesota web hotlinks Participation in Cyberdeals American Journeys itinerary page Travelinformation. com 24-7vacations.com Research Industry Performance and Trends Participate in TIA Marketing Summit Attend and participate in ESTO -~- Meeting/Corporate Travel Sales Marketing directly to meeting/corporate travel planners Continue refining and distributing Eagan's capability information Host follow-up site visits Continue "Book a 30 room meeting & the CVB will host a break" promotion." Cary out corporate travel buyer sales calls Organize and host corporate FAMs Develop and deliver incentives to corporate events Direct Mail to government meeting planners Participate in Federal Government Meeting Planner Forum Make more government meeting planner sales calls Market to travel agents with calls and premiums Repeat the highly successful Eagan Extravaganza promotion Paid print advertising in trade publications such as Annual Resource Directory Visual Listing Midwest Meetings Resource Guide 2006 Meetings MidAmerica Meetings-MN Hospitality Journal Annual Guide Enhanced listing Small Market Meetings SGMP Newsletter Advantage Magazine Twin Cities Business Monthly SGMP Directory OS-06 Marketing to Associations and Association Executives Minnesota Society of Association Executives Society of Government Meeting Planners Hospitality Sales and Marketing Assn Pursue MINT Leads from IACVB Marketing through Trade Shows MSAE Expo MSAE Golf Sponsor -partner with Hotels SGMP Sponsor Marketing through the Internet MN Meetings & Events %6 Midwest Meetings E-Pro Direct email marketing campaign Develop and Host Site Visits "Try Eagan on Us" Corporate Travel FAMS partner with hotels Market through educational networks MSAE Conference SGMP National Conference /7 Public Relations & Group/Sports Travel Sales Group Tours are recruited to use Eagan as a central location for aMinneapolis-Saint Paul itinerary. Sporting events are recruited to use Eagan and surrounding fields while team captains receive information, discount room/food packages for their teams in Eagan. Develop and promote stories to Travel Writers Marketing to Associations and Association Executives Paid print advertising in trade publications Design and produce promotional literature and CDs Marketing through committee participation and development Develop and conduct sports marketing promotions Promotions for teams staying in Eagan Promotions for Eagan events Conduct Eagan area destination previews for travel planners Participate in annual Group Tour Conferences Conduct accelerated sales calls to target market cities Develop and offer operators a plan B for cancellations Exhibit and generate leads from trade show participation Pursue Media Relations Travel Publicity Leads & Travel Industry of America East-West News Bureau Travel Writer FAM Tours Produce and Distribute Press Kits Provide Camera-ready publication photos, CDs, video, art Purchase Schmidt Media Directory Renew membership and participate in Society of American Travel Journalists %8' Agenda Information Memo November 15, 2005 Eagan City Council Meeting CONSENT AGENDA The following items referred to as consent items require one (1) motion by the City Council. If the City Council wishes to discuss any of the items in further detail, those items should be removed from the Consent Agenda and placed under Old or New Business unless the discussion required is brief. A. APPROVE MINUTES ACTION TO BE CONSIDERED: To approve the minutes of the November 1, 2005 regular City Council meeting as presented or modified. ATTACHMENTS: • Minutes of the November 1, 2005 regular City Council meeting are enclosed on pages through. /9 MINUTES OF A REGULAR MEETING OF THE ®R EAGAN CITY COUNCIL ~ ' Eagan, Minnesota November 1, 2005 A Listening Session was held November 1, 2005 at 6:00 p.m. prior to the regular City Council meeting. All members of the City Council were present. There were no citizens who wished to be heard. A regular meeting of the Eagan City Council was held on November 1, 2005 at 6:30 p.m. at the Eagan Municipal Center. Present were Mayor Geagan, Councilmembers Fields, Tilley, Maguire and Carlson. Also present were City Administrator Tom Hedges, Community Development Director Jon Hohenstein, City Planner Mike Ridley, Public Works Director Tom Colbert, City Attorney Mike Dougherty and Administrative Secretary /Deputy Clerk Mira Pepper. AGENDA City Administrator Hedges noted that New Business item B regarding a hearing for revocation of a conditional use permit will be continued to the December 5, 2005 City Council meeting. Councilmember Fields moved, Councihnember Carlson seconded a motion to approve the agenda as amended. Aye: S Nay: O CONSENT AGENDA Councilmember Maguire moved, Councilmember Tilley seconded a motion to approve the consent agenda as presented. Aye: S Nay: O A. Minutes. It was recommended to approve the minutes of the October 18, 2005 regular City Council meeting and the October 11, 2005 special City Council meeting as presented. B. Personnel Items. 1. It was recommended to approve the hiring of Barb Normandin as a part-time guest services- concessions worker at the Community Center. 2. It was recommended to approve a resolution proposing a veteran for discharge. C. Check Re isg tern. It was recommended to ratify the check registers dated October 20, 2005 and October 27, 2005 as presented. D. 2006-2010 CIP Part II Vehicles and Equipment. It was recommended to approve Part II (Vehicles and Equipment) of the 2006 - 1010 Capital Improvement Program (CIP). E. rant. It was recommended to adopt a resolution accepting a $1,250 grant from Sam's Club. F. Tem~orarv On-Sale Liquor License. It was recommended to approve a temporary on-sale liquor license and waive the license fee for Faithful Shepherd Catholic School. G. RFP. It was recommended to authorize the issuance of Request for Proposals for insurance broker services and authorize the advertisement for bids. H. Qwest Contract. It was recommended to enter into an agreement with QWEST for the ability to transfer 9- 1-1 calls to law enforcement jurisdictions outside the metro area. I. Web Streaming Vendor. It was recommended to approve the selection of Web Streaming vendor (Granicus) and authorize entering into contract subject to final negotiations and City Attorney and City Administrator approval. J. Hallev's 2"d Addition. It was recommended to continue action on the vacation of easements and the fmal plat for Halley's 2"d Addition to the January 3, 2006 City Council meeting. K. Project 917. It was recommended to receive the Final Assessment Roll for Project 917 (Coachman Road - Street Overlay) and schedule a public hearing to be held on December 5, 2005. L. Qwest Lease Agreements. It was recommended to approve renewal lease agreements with Qwest for 3805 Pilot Knob Road and 1410 Towerview Road and authorize the Mayor and City Clerk to execute all related documents. M. Project 926. It was recommended to receive the Draft Feasibility Report for Project 926 (Saddlehorn/Sunset/Northview Meadows Additions -Street Improvements) and schedule a public hearing to be held on December 5, 2005. N. Project 927. It was recommended to receive the Draft Feasibility Report for Project 927 (Meadowland 15` / Beaver Dam Road / Suncliff Additions -Street Improvements) and schedule a public hearing to be held on December 5, 2005. t~O Eagan City Council Meeting Minutes November 1, 2005 Page 2 RAFT O. DeveloRment Acceptance. It was recommended to acknowledge the completion of the public streets and utilities and authorize perpetual City maintenance subject to warranty provisions for the following development agreements contracts: • O1-G (Safari at Eagan 3rd Addition) • 02-R (Greyhawk 2°d Addition) • 04-B (Terra Glenn ls` Addition) • 04-H (Long Acres 2°d Addition) • 04-W (Terra Glenn 2°d Addition) P. Contract 03-09. It was recommended to approve a reduction in retainage for Contract 03-09 (Coachman Water Treatment Plant) and authorize the Mayor and City Clerk to execute all related documents. Q. Policv Pertairuns to Issuance of Financial Guarantees. It was recommended to refer consideration of a policy pertaining to the issuance of financial guarantees by banks and other financial institutions to the Council Finance Committee. R. Final Planned Development - It was recommended to approve a Final Planned Development to construct a 46,500 square foot office/warehouse building located at 2975 Lone Oak Drive in the SW '/4 of Section 1. S. Holz Farm It was recommended that the City of Eagan enter into a contract with U.S. West Research, Inc. in the amount of $6,000 to list Holz Farm on the National Register of Historic Places. T. Radio Service Agreement. It was recommended to enter into an agreement with Ancom Technical Center, Inc. to provide maintenance to the police department's radio infrastructure. U. Tobacco License. It was reconunended to approve a Tobacco License for Michael Madigan, Cedar Grove Liquor, 1983 Silver Bell Road. V. Snow and Ice Control. It was recommended to receive the bids and approve entering into contract agreements with Gallagher's, Inc. for mainline street and cul-de-sac snow removal services and Bever Landscaping for trail and sidewalk snow removal services for the 2005-2006 winter season and authorize the Mayor and City Clerk to execute all related documents. W. Tobacco License. It was recommended to approve a Massage Therapy Establishment License for Brian Garrity, Twin Cities Therapeutic Massage, 4660 Slater Road. PUBLIC HEARINGS PROJECT 911, BERKSHIRE PONDS /SAFARI 2ND -STREET OVERLAY FINAL ASSESSMENT ROLL City Administrator Hedges introduced this item regarding the final assessment roll for Berkshire Ponds /Safari 2nd Additions street overlay. Public Works Director Colbert gave a staff report. Mayor Geagan opened the public hearing. There being no public comment, he closed the public hearing and turned discussion back to the Council. Councilmember Fields moved, Councilmember Maguire seconded a motion to approve the Final Assessment Roll for Project 911 (Berkshire Ponds /Safari 2°d Additions -Street Overlay) and authorize its certification to Dakota County for collection. Aye: 5 Nay: 0 PROJECT 915, RIDGECLIFFE / COVINGTON LANE / GALAXIE AVENUE STREET OVERLAY FINAL ASSESSMENT HEARING City Administrator Hedges introduced this item regarding the final assessment roll for Ridgecliffe / Covington Lane / Galaxie Avenue street overlay improvements. Public Works Director Colbert gave a staff report. Mayor Geagan opened the public hearing. There being no public comment, he closed the public hearing and turned discussion back to the Council. Councilmember Tilley moved, Councilmember Carlson seconded a motion to approve the Final Assessment Roll for Project 915 (Ridgecliffe / Covington Lake 1 Galaxie Avenue -Street Overlay Improvements) and authorize its certification to Dakota County for collection. Aye: 5 Nay: 0 ~/ Eagan City Council Meeting Minutes ®~~ November 1, 2005 Page 3 CERTIFICATION OF DELINQUENT FALSE ALARM BILLS City Administrator Hedges discussed this item regarding the certification of delinquent false alarm bills. He noted that the City currently has six delinquent false alarm bills with the assessable amount of $1,360.00. Mayor Geagan opened the public hearing. There being no public comment, he closed the hearing and turned discussion back to Council. Councilmember Fields moved, Councilmember Tilley seconded a motion to close the public hearing and approve the fmal assessment roll for delinquent false alarm bills and authorize its certification to Dakota County. Aye: 5 Nay: 0 CERTIFICATION OF DELINQUENT WEED CUTTING BILLS City Administrator Hedges discussed this item regarding the certification of delinquent weed cutting bills. He noted that the City currently has two delinquent weed cutting bills with an assessable amount of $418.10. Mayor Geagan opened the public heazing. There being no public comment, he closed the public hearing and fumed discussion back to Council Councilmember Carlson moved, Councilmember Fields seconded a motion to approve the final assessment roll for delinquent weed cutting bills and authorize its certification to Dakota County. Aye: 5 Nay: 0 CERTIFICATION OF DELINQUENT UTILITY BILLS City Administrator Hedges discussed this item regazding the certification of delinquent utility bills. He noted that the City currently has approximately 379 utility bill accounts with delinquent payments in the amount of $61,890.09. Mayor Geagan opened the public hearing. There being no public comment, he closed the public hearing and fumed discussion back to Council. Councilmember Maguire moved, Councilmember Tilley seconded a motion to approve the fmal assessment roll for delinquent utility bills and authorize its certification to Dakota County. Aye: 5 Nay: 0 OLD BUSINESS RECEIVE BIDS AND AWARD SALE OF $5,160,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2005A; $3,840,000 GENERAL OBLIGATION REFUNDING WATER REVENUE BONDS, SERIES 2005B; AND $1,550,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2005C; AND ENGAGE SPRINGSTED, INC. TO PERFORM CONTINUING DISCLOSURE REPORTING AND ARBITRAGE REBATE CALCULATION REQUIREMENTS FOR SUCH BONDS City Administrator Hedges introduced this item regarding the award sale of General Obligation Bonds. Bruce Kimmel, Springsted, made a presentation regarding the bids and recommended action. He also discussed the City's credit rating. Councilmember Carlson moved, Councihnember Fields seconded a motion to approve the resolutions awarding the sale of $5,160,000 General Obligation Refunding Bonds, Series 2005A; $3,840,000 General Obligation Refunding Water Revenue Bonds, Series 2005B; and $1,550,000 General Obligation Improvement Refunding Bonds, Series 2005C. Aye: S Nay: O Councilmember Maguire moved, Councihnember Tilley seconded a motion to engage Springsted, Inc. to perform future continuing disclosure reporting and arbitrage rebate calculation requirements for the above bonds. Aye: 5 Nay: 0 as Eagan City Council Meeting Minutes ®~ November 1, 2005 ~ r Page 4 /' PRELIMINARY SUBDIVISION (ESMERALDA ADDITION) -CHARLES HANF City Administrator Hedges introduced this item regarding a preliminary subdivision of .62 acres to create two single family lots and a variance to lot width for property located at Lot 1, Block 1, Pilot Knob Heights Fourth Addition. City Planner Ridley gave a staff report, noting that this item was continued from the September 20, 2005 City Council meeting to allow the applicant time to meet with the neighboring property owners. Charles Hanf discussed the meetings that had been held with the neighbors and the proposed changes to his plans. He also noted several additional conditions that he would be willing to meet to accommodate the wishes of his neighbors. Eight neighboring residents spoke in opposition to the proposed subdivision, expressing concerns regarding a decrease in property values, obstruction of their view, and loss of trees. The Council held a discussion and it was the general consensus that Mr. Hanf has the right to subdivide his property and build a new home. The proposed conservation easement was discussed and it was decided that a berm is not necessary. Councihnember Carlson noted that she would be voting against the subdivision due to the request for a lot width variance. Council also agreed to include the conditions offered by Mr. Hanf as part of the conditions of approval. Councihnember Maguire moved, Councilmember Tilley seconded a motion to approve a Preliminary Subdivision (Esmeralda Addition) of .62 acres to create two single family lots and a Variance to lot width for property located at Lot 1, Block 1, Pilot Knob Heights Fourth in the SW '/< of Section 1, subject to the following conditions: Aye: 4 Nay: 1 (Carlson opposed) 1. The developer shall comply with these standards conditions of plat approval as adopted by Council on February 2, 1993: A1, B1, 4, C!, D1, E1. 2. The property shall be platted. 3. The subdivision is subject to the Shoreland Overlay District of Fish Lake linuting impervious surface to 25% per lot. 4. A cash dedication in lieu of on-site water quality ponding is required for this development. 5. Cash park and trail dedication for Lot 1 is required. 6. This development shall dedicate drainage and utility easements to an elevation three feet above the calculated 100-year storm event elevation of Pond JP-47 (to elevation 855.5). 7. This development shall be consistent with the plan received October 21, 2005 (page 138 of the 11/1/OS Council packet). 8. The footprint of the house and garage structures combined shall not exceed 1500 square feet. 9. The house shall be limited to one-story construction with a full basement. 10. The width of the driveway shall not exceed 10 feet except at the garage apron and turn-around area. 11. A conservation easement shall be established along the north and east property lines as depicted on the plan received October 21, 2005 (page 138 of the 11/1/OS Council packet). 12. The location of the house and garage will be in accordance with the plan received October 21, 2005 (page 138 of the 11/1/OS Council packet). 13. The developer shall hire Kunde Co., 2489 Rice Street, Roseville, MN 55113 to take the following measures to preserve the health of the silver maple (#18 on the plat) including but not limited to: placing tree protection fencing between the tree and the work area, spreading a thick woodchip layer to mitigate soil compaction, pre- pruning any overhanging limbs and hand pruning and sealing any exposed roots during excavation. SIGN ORDINANCE APPEAL - IDENTIGRAPHIC5 City Administrator Hedges introduced this item regarding a request for LED canopy signage. He noted that the item was before the Council on September 20, 2005 at which time the Council directed the City Attorney to research whether LED canopy signage could be restricted. Councihnember Fields moved, Councihnember Carlson seconded a motion to direct consideration of canopy signage to the December 12, 2005 City Council workshop. Aye: 5 Nay: 0 ~3 Eagan City Council Meeting Minutes November 1, 2005 Page 5 /y NEW BUSINESS PLANNED DEVELOPMENT AMENDMENT - ATTRACTA SIGN City Administrator Hedges introduced this item regarding a Planned Development Amendment to allow two monument signs for one building at 2955 Lone Oak Drive. City Planner Ridley gave a staff report. A brief discussion was held. Councihnember Maguire moved, Councilmember Tilley seconded a motion direct preparation of findings of fact for denial of a Planned Development Amendment to allow two monument signs for one building at 2955 Lone Oak Drive, legally described as Lot 1, Block 1, Blue Ridge 6`~ Addition located in the SW '/, of Section 1. Aye: 5 Nay: 0 Councilmember Magire stated the reasons for the findings of fact for denial are as stated in the draft Advisory Planning Commission minutes dated October 25, 2005 HEARING -CONDITIONAL USE PERMIT REVOCATION MAGNUM TOWING This item regarding the revocation of the Conditional Use Permit at 4871 Biscayne Avenue was continued to the December 5, 2005 meeting. LEGISLATIVE /INTERGOVERNMENTAL AFFAIRS UPDATE No update to report. NEW RUNWAY /AIRPORT UPDATE It was noted that the new runway has been opened and staff is receiving a number of noise complaint calls from citizens. It was also noted that the New Runway /Airport Update portion of the regular Council agenda will no longer be on the agenda. There will be periodic updates provided to Council in regard to citizen concerns. ADMINISTRATIVE AGENDA City Administrator Hedges stated that there will be an Executive Session after the regular meeting to discuss the pending Wensmann litigation and the pending Charter Commission litigation. The City Council meeting was recessed 8:25 p.m. to immediately convene a meeting of the Economic Development Commission. The regular City Council meeting was reconvened at 8:50 p.m. VISITORS TO BE HEARD There were no visitors who wished to be heard. Councilmember Maguire moved, Councilmember Tilley seconded a motion to adjourn the regular City Council at 8:50 p.m. Aye: 5 Nay: 0 Date Administrative Secretary /Deputy City Clerk If you need these minutes in an alternative form such as large print, Braille, audio tape, etc., please contact the City of Eagan, 3830 Pilot Knob Road, Eagan, MN 55122, (651) 675-5000, (TDD phone: (651) 454-8535). a~ Eagan City Council Meeting Minutes November 1, 2005 Page 6 CRAFT The City of Eagan is committed to the policy that all persons have equal access to its programs, services, activities, facilities and employment without regard to race, color, creed, religion, national origin, sex, disability, age, sexual orientation, marital status or status with regard to public assistance. „2S Agenda Information Memo November 15, 2005 Eagan City Council Meeting B. PERSONNEL ITEMS Item 1. Part-time Guest Services Rep /Community Center ACTION TO BE CONSIDERED: To approve the hiring of Peggy Hohag as a part-time guest services rep at the Community Center. a~ Agenda Information Memo November 15, 2005 Eagan City Council Meeting C. RATIFY CHECK REGISTERS ACTION TO BE CONSIDERED: To ratify the check registers dated November 3, 2005 and November 10, 2005 as presented. ATTACHMENTS: • Check registers dated November 3, 2005 and November 10, 2005 are enclosed without page number. a~ Agenda Information Memo November 15, 2005 Eagan City Council Meeting Consent D: Approve Dakota Valley Recycling 2006 funding application to Dakota County for Community Landfill Abatement Funds. ACTION TO BE CONSIDERED: • To approve submission of the 2006 funding application to Dakota County to operate a recycling program for the cities of Eagan, Burnsville, and Apple Valley (jointly, Dakota Valley Recycling). FACTS: • Dakota County has funds available annually to help constituent cities promote and operate Landfill Abatement (Recycling) programs. • In 2003, the cities of Eagan, Burnsville, and Apple Valley formed a partnership called Dakota Valley Recycling that combined their recycling program efforts. • Burnsville staff has prepared a single Landfill Abatement Grant application for all three cities. • The total grant request is $137,900, consisting of $125,300 in base level funding and $12,600 in three special initiatives requiring no local match: a pharmaceutical disposal campaign; environmentally preferable purchasing baseline data; and amulti-family recycling program. ATTACHMENTS: • None. ~~ Agenda Information Memo November 15, 2005 E. APPROVE RENEWALS OF EXISTING LIOUOR LICENSES FOR 2006 ACTION TO BE CONSIDERED: To approve the renewals of existing liquor licenses for 2006, subject to review of applications, payment of fees and Police Department reviews. FACTS: - The liquor license renewals for the year 2006 include the following: (14) off-sale liquor (26) on-sale liquor (24 restaurants and 2 hotels = 26 total) (6) on-sale wine and beer (8) on-sale beer (15) off-sale beer (1) sports/convention facility - These renewals are in the process of completion and should be approved subject to review and recommendation by the Eagan Police Department, payment of fees and submittal of required documents. ATTACHMENTS (1): - Liquor license renewals on pages ~ ~ through ,Z. a9 y Q~ N C N U L O J (6 O 0 N N i c V J ~ f6 a O C7 tII ~ U O O O M L m C U c ~ ~ H d0 N r ° ~ N y ~ m O M r ~ a ~ C ~ O a O) O) N r o ~ m ~ > cn M CO O r o ~ ~ U M r r ('V ~ ~ O •C 00 U O O O M ~ v 00 ~ Y ~ ~ ~ ~ ~ r ° ~ N Q O J ~ ~ N r ~ ai Q O •C N J O l1y N ~ o ~ ~ Y O a N Op r- cr o ~ ~ Y J ~ U O (O O r m ~ ~ Q ~ ~ ~ O ~ M O M °' r ~ '"' ~ (0 ~ U Ln CO ll> r L m ~ U C fA ~ N ~ ~ j Q ~ ~ ~ Q- O f/1 ` (n 7 ~ Y N O D ~ °~ ~ ~ °~ ~ ~ ~5 ~ ~ J rr M p d- J to ~ J p N N p C ~ N a ~ ~ ~ ~ 7 C ` 5 ~ ~ ~p ~ _C > O J ~ 6 O L O O C -Q ~ ` O (J Q IO V1 ~ > N _ J p U ~ ~ U 6 to O Y ~' L ` O ~ 0 0 N . 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V ~ O U C ° V c - 3 Y ~ y ° O ~ Q C o O v O o N ° C - y Q .W O U , ~ O c ~ cu U O N C U1 O :. ~ N LL ~ cA O- y ~ O O O J C N ~ m U c ~ c N ~ 0 ~ U C Y f/~ N ~ ~' t C C J m Q ~ (~ ~ O ` _ N U J J N ~ C C U a U O U U ~ c N N •` ~ O a~ o. :N a~ Q m d O U o ` N ~.. c W ~ LLI .- ~ c ca N N U c U .c co 3 '~ y ,Y o1S C ~... > (6 ' D. Q f0 L "O O (A N L O O U C O ~ _ ~ O (C L ~' O f0 C ~ N ~ N 7 y J N C fII ~ f0 +. - fB ~ J _O ~ U Q U U U U U H U U U C~ C~ 2 5 W U Q fn 2 ~ 3~ Agenda Memo Regular City Council Meeting November 15, 2005 CONSENT AGENDA: F. Tobacco Licenses for Croix Oil Company ACTION FOR CONSIDERATION: Approve Tobacco License for Croix Oil Company (Croix Convenience Store, 1424 Yankee Doodle Road) FACTS: All requirements of the application have been met. The application has been reviewed by the Police Department and they find no reason to deny. Staff recommends approval of the tobacco license. ATTACHMENTS: • The application is available in Administration for review. 3.3 Agenda Memo Regular City Council Meeting November 15, 2005 CONSENT AGENDA: G. RENEWALS OF EXISTING TOBACCO LICENSES FOR 2006 ACTION FOR CONSIDERATION: Approve renewal of existing tobacco licenses for 2006 subject to review by staff. FACTS: There are currently 69 establishments licensed to sell tobacco products in the City. Submittal of renewal applications is currently in process and approval should be subject to payment of fees and review by staff. ATTACHMENTS: Renewal applications are available in Administration for review. 3 S~ Agenda Memo Regular City Council Meeting November 15, 2005 CONSENT AGENDA: H. RENEWALS OF EXISTING TRASH HAULER LICENSES FOR 2006 ACTION FOR CONSIDERATION: Approve renewal of existing trash hauler licenses for 2006 subject to review by staff. FACTS: • There are currently 8 residential haulers, 11 multiple family /commercial haulers, and 27 construction /demolition haulers licensed in the City. • Submittal of renewal applications is currently in process and approval should be subject to payment of fees and review by staff. ATTACHMENTS: Renewal applications are available in Administration for review. 3~_ Agenda Memo Regular City Council Meeting November 15, 2005 CONSENT AGENDA: I. RENEWAL OF EXISTING PET SHOP AND KENNEL LICENSES FOR 2006 ACTION FOR CONSIDERATION: Approve renewal of existing pet shop and kennel licenses for 2006 subject to review by staff. FACTS: ~ There are currently 4 pet shops and 3 kennels licensed in the City. • Submittal of renewal applications is currently in process and approval should be subject to payment of fees and review by staff, which includes an inspection of the premises by the Animal Control Officer. ATTACHMENTS: Renewal applications are available in Administration for review. Agenda Memo Regular City Council Meeting November 15, 2005 CONSENT AGENDA: J. RENEWAL OF EXISTING TREE CONTRACTOR LICENSES FOR 2006 ACTION FOR CONSIDERATION: Approve renewal of existing tree contractor licenses for 2006 subject to review by staff. FACT5: • There are currently 20 tree contractors licensed in the City. • Submittal of renewal applications is currently in process and approval should be subject to payment of fees and review by staff. ATTACHMENTS: Renewal applications are available in Administration for review. 37 Agenda Memo Regular City Council Meeting November 15, 2005 CONSENT AGENDA: K. SET FEE FOR PERMIT TO HARBOR CARRIER /HOMING /RACING PIGEONS ACTION FOR CONSIDERATION: Set fee of $50 for permit to harbor carrier /homing /racing pigeons FACTS: • The City Code, Chapter 10.12 Subdivision 7, addresses the requirement for a permit for any person to keep, harbor, maintain, possess or otherwise control any carrier pigeon. • A fee for the permit has not been established, as there have been no previous requests for a permit to harbor pigeons. • It was recently brought to staff's attention that a resident in the City is keeping pigeons on his property. He has been informed that a permit is required and the necessary forms and a copy of Chapter 10.12 of the Code have been provided to him. This application will be on a future agenda for approval. • Staff is recommending the fee be set at $50. ATTACHMENTS: • Attached as pages ~ through ~ is a copy of Chapter 10.12 of the Code pertaining to the harboring of pigeons. • Attached as page[~•Z.is a copy of the application form. 3~ PUBLIC PROTECTION, CRIIVIES AND OFFENSES § 10.12 laboratory for scientific or experimental purposes, or (5) animals kept in an animal hospital or clinic for treatment by a licensed veterinarian, or (6) animals kept in a pet shop licensed under the City Code, or (7) as otherwise provided in this section. Subd. 2(a). Kennels. It is unlawful for any person to keep or harbor a total of four or more dogs, cats, ferrets, or rabbits, or a combination thereof, over six months of age, without first obtaining a kennel license from the city as regulated in Chapter 6 of this Code. Subd. 3. Animals in transit. It is unlawful for any person to transport animals unless they aze (I) confined within a vehicle, cage or other means of conveyance, or (2) farm animals being transported in a portion of the city zoned agricultural, or (3) restrained by means of bridles, halters, ropes or other means of individual restraint. Subd. 4. ~eatment. It is unlawful for any person to treat any animal, as herein defined, or any other animal in a cruel or inhumane manner. Subd. 5. Housing. It is unlawful for any person to keep any animal, as herein defined, or any other animal in any structure infested by rodents, vermin, flies or insects or inadequate for protection against the elements. Subd. 6. TS-espasses. It is unlawful for any person to herd, drive or ride any animal over and upon any grass, turf, boulevard, city park, cemetery, garden or lot without specific permission therefor from the owner. Subd 7 Harboring carrier pigeons. ~' ,..3 A. Definitions. As used in this subdivision, the following definitions shall apply: 1. Carrier pigeon means any homing or racing pigeon which has the name of the owner stamped upon the wing or tail or is banded upon the leg with the name or initials of the owner or with an identification or registration number stamped on the band. ~ 2. Homing pigeon and racing pigeon mean a pigeon registered with a national pigeon racing organization and used as a game and competitive bird. Homing and racing pigeons shall not constitute "fowl" as otherwise used in this section unless such pigeons are raised for food or for similar commercial purposes. 3. Loft means one or more structures in which carrier pigeons are housed. 4. Pigeon means a member of the family Columbidae. B. Carrier pigeon permit required. It is unlawful for any person to keep, harbor, maintain, possess, or otherwise control any carrier pigeon without first obtaining a permit therefor from the city. The fees for a permit hereunder shall be established by the council, by resolution, from tune to time. Each permit hereundez shall be issued for a period of one year from its date of issuance. C. Permit application. An application for a permit hereunder shall be filed with the city clerk upon an application form furnished by the city. A permit hereunder may not be renewed unless an application is filed pursuant to this subdivision and the animal Supp.. No. 9 CD10:18.1 ~39 § 10.12 EAGAN CODE control officer inspects the premises and lofts thereof. All applications for permit renewal shall be filed within 60 days prior to the expiration of the present operating permit. The application shall include, but not be limited to, the following: 1. The name and addresses of the following persons: (a) The applicant signed thereto; and (b) The owner or owners of the premises on which carrier pigeons are sought to be kept for which the application is submitted; 2. The location and legal description of the premises on which carrier pigeons are sought to be kept; 3. The number of carrier pigeons kept and hazbored on the premises; 4. Verification of identification marks stamped on each carrier pigeon or each carrier pigeon is banded upon the leg with the name or initial of the owner or an identification registration number stamped on the band; 5. A sketch plan of the premises on which carrier pigeons are sought to be kept, including the location, dimensions and design of the loft; and 6. Ariy other and further information as the city deems necessary. t. D. Granting or denying issuance of permit. The council may, as provided in this subdivision, grant or refuse to grant a permit hereunder. The council may refuse to grant a permit hereunder for any of the following reasons: 1. The application is incomplete and contains false, fraudulent or deceptive state- ments. 2. The applicant has not complied with one or more of the provisions hereunder. 3. The premises or loft thereof for which the permit is sought is not in compliance with all provisions of this subdivision, other City Code provisions or state laws relating to zoning, health, fire, building or safety regulations. 4. The applicant or owner of the premises or carrier pigeons harbored or kept thereon has been convicted of a violation under this subdivision. E. Conditions of permit. A permit granted by the council hereunder shall be subject to the following conditions and to such other conditions as the council may deem necessary and expedient for the protection of health, safety and general welfare of the city: 1. Inspection. The premises and loft(s) thereon for which a permit is issued shall at all reasonable times be open to inspection by the anunal control officer or any other city official to determine compliance with this subdivision, other City Code provisions or state laws relating to zoning, health, fire, building or safety regulations. 2. T}ansferability of permit. Any permit issued hereunder shall be nontransferable except upon application to and with the consent of the council. An application for the transfer shall be made as an application for issuance of the initial permit and Supp. No. 9 CD 10:18.2 ~~ PUBLIC PROTECTION, CRIl~S AND OFFENSES § 10.13 shall conform is all respects with the provisions of subpazagraph B, above, governing the filing of the original application. The application for transfer is to be accompanied by a transfer fee as to be determined by the council. 3. Specifications. The construction and location of the loft shall be in compliance with the building and zoning regulations of the city and the following require- ments: (a) No more than two lofts, of which each shall not be greater in size than 24 feet x 12 feet x 14 feet shall be on the premises. (b) No more than 100 pigeons over three months of age shall be kept or hazbored on the premises for which the permit applies. (c) No loft shall be within 25 feet of any inhabited dwelling. (d) Each loft shall be maintained in a clean and sanitary condition and kept in good repair, including the removal and disposal of all pigeon waste weekly or more often as required to keep the loft in a sanitary and odor-free condition. (e) Each loft shall have at least two square feet of floor space for each mature carrier pigeon kept therein. (fl All carrier pigeons shall be fed within the confines of the loft, and all feed for the carrier pigeons shall be stored in such containers as to protect against infestation of rodents and other vermin. (g) All pigeons shall be confined to the loft, except for limited periods necessary for exercise, training and competition; provided no carrier pigeon shall be released for flying within eight hours of its feeding. (h) No pigeon shall perch or linger on the buildings or property of others. F. Revocation of permit. Any violation of any provision of this section or any conditions of the pormit issued hereunder or any misdemeanor and petty misdemeanor conviction of the permit holder under this subdivision shall constitute grounds for revocation of a permit issued hereunder. (Code 1983, § 10.12, eff. 1-1-53; Ord. No. 149, 2nd series, eff. 10-30-92; Ord. No. 270, 2nd series, eff. 12-24-98; Ord. No. 307, 2nd series, § 1, eff. 9-20-O1) Cross references-Kennels, § 6.38; pet shops, § 6.43. Sec. 10.13. Trapping prohibited; exceptions. Subd. 1. Definitions. The following terms, as used in this section, shall have the meanings stated: A. Trap means any device, snare, artificial light, net, bird line, ferret, hawk, vehicle or contrivance whatever used to catch, snare, kill, or otherwise restrain the free movement of animals or birds. B. Trapping means the act of setting, laying or possession with intent to set or lay a trap. Supp. No. 12 CD10:18.3 S` / CITY OF EAGAN CARRIER /HOMING /RACING PIGEON LICENSE APPLICATION 3830 Pilot Knob Road License Fee: $50 Eagan, MN 55122 Renewal Fee: $50 651-675-5000 Name of Applicant Street Address City, State, Zip Telephone Number Location of structures where pigeons are to be housed, if different from above address: Legal Description of property: Name of Owner of Property (if different from applicant) Address: ., Number of pigeons to be kept and harbored on the premises: Verification of identification marks stamped on each pigeon or each carrier pigeon is banded upon the leg with the name or initial of the owner or an identification registration number stamped on the band. A sketch plan of the premises on which pigeons are to be kept, including the location, dimensions and design of the loft must be provided with this application form and comply with specifications outlined in the City Code, Chapter 10.12. License must be renewed annually. ~~ Agenda Memo November 15, 2005 City Council Meeting CONSENT AGENDA L -AUTHORIZE Central Park Pond No Longer be Designated as a Winter Outdoor Skating Site ACTION TO BE CONSIDERED: To authorize that the Central Park pond no longer be designated as a winter outdoor skating site. FACTS: • When Central Park was being planned and developed it was thought that the storm water pond near the community center could be designated as an outdoor winter skating site to supplement the outdoor skating experience in Eagan. • After operating the site for that purpose the following concerns were shared with the Operations Committee on November 1: 1. The rink is difficult to maintain due to the nature of the storm water pond's fluctuating water levels. 2. Other than a special event held at the rink, very few skaters used the rink. • Because of the potential safety concerns and the low attendance, the Operations Committee felt that the designation of this pond for outdoor skating should be discontinued. • Special events that may have been held at this location can be easily moved to another more appropriate outdoor rink. • Trails surrounding the pond at Central Park will continue to be cleared to provide outdoor walking opportunities in this scenic park and staff will continue to install a lighted holiday tree on the pond. ATTACHMENTS: None 'f3 Agenda Memo November 15, 2005 Ciry Council Meeting CONSENT AGENDA M -APPROVE Renewal of Heart Healthy Llying Program Agreement for Eagan Community Center ACTION TO BE CONSIDERED: To approve the renewal of a contract with Heart Healthy Living, P.A. for 2006 to provide cardiac rehabilitation maintenance program services at the Eagan Community Center and direct the Mayor and City Clerk to sign the agreement document. FACTS: • Heart Healthy Living, P.A. (HHL) is an independent contract service that offers Phase lII/1V Cardiac Rehabilitation Maintenance Program services. • HHL wishes to continue their contract in 2006 for the use of the Eagan Community Center's exercise studio, walking track, exercise equipment, conference room and locker rooms Monday, Wednesday and Friday from 11:00 a.m. - 12:15 p.m. for HHL clients and staff: • HHL's agreement pays the City 20% of all revenue gained by client program participation fees, which is confirmed by monthly attendance sheets. • HHL will provide general liability insurance at $1,000,000 per occurrence and $1,000,000 per year as well and Professional Liability at $1,000 per occurrence and $1,000,000 per year. • This has been a very positive and successful partnership that began in 2004 and continues to provide a positive benefit to the participants and ECC. ATTACHMENTS: None ~~ Agenda Memo November 15, 2005 City Council Meeting CONSENT AGENDA N -APPROVE Recommendation for 2006 Holiday Hours at the Eagan Communi , Center ACTION TO BE CONSIDERED: To approve the proposed 2006 hours of operation for the Eagan Community Center. FACTS: • The City Council annually reviews proposed hours of operation for the Eagan Community Center. • The proposed regular weekly hours for 2006 are: Monday -Friday 5:45 a.m. - 9:45 p.m. Saturday 8:00 a.m. - 6:00 p.m. Sunday** Noon - 6:00 p.m. **January 8-Apri130 Add: 10 a.m. -Noon • The proposed holiday hours for 2006 are: New Years Day Sun., Jan. 1 Day after New Years Mon, Jan. 2 Martin Luther K. Mon., Jan. 16 Presidents Day Mon., Feb. 20 Easter Sun., April 16 Memorial Day Mon., May 29 Independence Day Mon., July 4 Labor Day Mon., Sept. 4 Thanksgiving Day Thurs., Nov. 23 Day after Thanksgiving Fri., Nov. 24 Christmas Eve Sun., Dec. 24 Christmas Day Mon., Dec. 25 Day after Christmas Mon., Dec. 26 New Years Eve Sun., Dec. 31 Closed 8 a.m. - 4:00 p.m. Normal Monday hrs Normal Monday hrs Closed 8:00 am -Noon 8:00 -Noon 8:00 am -Noon Closed 8:00 a.m. - 4:00 p.m. Closed Closed 8:00 a.m. - 4:00 p.m. Closed 4~' of July hours may need to be adjusted to accommodate the 4`~ of July celebration. ATTACHMENTS: None ~S~ Agenda Memo November 15, 2005 City Council Meeting CONSENT AGENDA O -APPROVE Tanuary Fitness Membership Promotion at the Eagan Communi , Center ACTION TO BE CONSIDERED: To approve the proposed January fitness promotion for the Eagan Community Center. FACTS: ^ The proposed January 2005 promotion, "Active Rewards -You Deserve It," will offer a package of incentives to potential members to help retain their membership for a longer period of time. ^ New members will receive a fitness center orientation and a 12-week exercise/nutrition journal. ^ New members will be challenged to keep track of their workouts in their journal while completing a minimum of 8 workouts per month for 3 months. ^ Once 3 months have gone by, and if the new member has completed 24 workouts, they will receive a complimentary 1 hour session with one of the certified personal trainers. ^ New members will be challenged to continue their new habit of working out at least 8 times per month over the course of another 3 month period. ^ Once 6 months have gone by and if the new member has completed 48 workouts, they will be given a Polar Heart Rate Monitor. ^ By completing 48 workouts over 6 months, the member will have received up to $150 in value and hopefully will be retained as a member. ^ The January promotion will be advertised in newspapers, brochures, mailings, cable TV, and to corporations. ATTACHMENTS: None y6 Agenda Merno November 15, 2005 City Council Meeting CONSENT AGENDA P -APPROVE Modification of Hours at Cascade Bay for the 2006 Season ACTION TO BE CONSIDERED: To approve the proposed modification of hours at Cascade Bay for the 2006 season to include the following; • Periodic Thursdays: 11 am - 5:00 pm To allow for expanded private rental opportunities. Dates will be specifically defined in time for season pass sales and 2006 marketing. • Periodic Sundays: 11 am - 8:30 pm When a Thursday private rental closes the park at 5:00 pm, the park will remain open the following Sunday. Other Sundays will continue to be available for private rental. FACTS: • Cascade Bay will be entering its eighth year of operation in 2006. • Attendance numbers and trends aze becoming more predictable and staff is able to see where there is capacity for growth and expansion. • It appears that private rentals have been declining in the past three years. Currently those opportunities occur on Sunday evenings from 6:30 - 8:30 pm and other days of the week from 8:30 -10:30 pm. • The existing hours don't appeaz to be conducive to corporations who might be interested in hosting their company event at Cascade Bay. • Staff is asking for the flexibility to offer periodic Thursday evening rentals from 5:00 - 10:30 pm to promote private rental opportunities. In exchange, the following Sunday evening would remain open to the public unti18:30 pm because of the early closure on Thursday. • If there are no private rentals on the targeted Thursday evenings, staff is also asking for the flexibility to remain open to the public unti18:30 pm. • Past use demonstrates that Thursday evening has the lowest attendance and would be a viable option for corporate events to expand the evening attendance. It would also provide the opportunity to promote Cascade Bay to local companies. ATTACHMENTS: None ~~ Agenda Memo November 15, 2005 City Council Meeting CONSENT AGENDA Q -ACCEPT the Donation of Three (3) Trees from Richard Grundman for Placement in George Ohmann Park. ACTION TO BE CONSIDERED: To approve the donation of three Scotch pine trees from Richard Grundman, which have been requested to be placed within George Ohmann Park. FACTS: • The City Council formalized a donation policy and gift book to allow for the donation of specific items that people might consider to be incorporated within City of Eagan parks. • Mr. Grundman approached the City Forester to see how he might be able to donate trees within George Ohmann Park. • After meeting with Forestry Supervisor Hove, the selection of three large Scotch pine trees was determined to be the best fit for the location Mr. Grundman desired. • The trees selected are approximately $220 each resulting in a very kind and generous total donation of $660 from Mr. Grundman. • Upon acceptance of the donation by the City Council, Supervisor Hove will make arrangements for the purchase and installation of the trees in accordance with Mr. Gnandman's gift. ATTACHMENTS: None va Agenda Memo November 15, 2005 City Council Meeting CONSENT AGENDA R -ACCEPT Contribution from Eagan Teen Advisory Board Fundraising Campaign for Oasis Teen Center. ACTION TO BE CONSIDERED: To accept the contribution of $500 from the Eagan Teen Advisory Board (ETAB) fundraising campaign for designation to the Oasis Teen Center. FACTS: • The Eagan Teen Advisory Board was developed to not only provide a voice for the teen population within the City of Eagan but also to provide opportunities in community involvement. • One of the objectives of ETAB has been to find ways to generate revenue to demonstrate their interest in helping to financially support the Oasis Teen Center however possible. • The City Council previously approved the partnership between ETAB and the Eagan Foundation, which serves as the fiduciary agent for ETAB. • ETAB has participated in several activities during the year to raise funds and is now able to contribute $500 towazd the Oasis Teen Center. • It is ETAB's desire that the monetary contribution be accepted by the City Council and be designated for the Oasis Teen Center. ATTACHMENTS: None ~{ 9 Agenda Memo November 15, 2005 City Council Meeting CONSENT AGENDA S -ACCEPT the 20/20 Vision for Parks, Recreation and Open Space Document as a Guide for Future Planning. ACTION TO BE CONSIDERED: To accept the 20/20 Vision for Parks, Recreation and Open Space document as a guide for the City of Eagan's future planning, discussion and policy consideration during the next 15 years. FACTS: • The last pazk system plan was completed in 1990 and designed to look at the needs of a rapidly growing community and to find ways to respond to those needs. • As the city's growth started to decline, the questions of maintenance and sustainability began to surface, resulting in the need to review and update the vision for future planning. • The Advisory Parks Commission, City Council, community groups and staff have been working with the city's consultant, CEHP, to create a guide and vision for the city's park, recreation and open space needs over the next fifteen years. • Beginning in November 2004, community involvement and input was solicited and continued through the formal comment period of the draft plan, which ended September 1, 2005. Several public forums were held, information was provided in the local newspapers, Discover, Experience Eagan, website, cable broadcasts and interviews to keep residents engaged and informed. • The final draft was presented to the City Council at a special workshop on November 7 by the Advisory Parks Commission. • The vision document will be used as a guide to help current and future commissions and councils work through issues of sustaining an existing successful park, recreation and open space system. • The City Council will be engaged in all policy issues that might impact changes, actions or planning considerations for parks, recreation or open space future needs to meet the ever changing demographics of Eagan. • The general consensus from the November 7 workshop was that this tool will better equip the City of Eagan to identify and discuss issues that may need to be changed or implemented to maintain the level of service that residents are currently enjoying. ATTACHMENTS: None J Agenda Information Memo November 15, 2005 Eagan City Council Meeting T. FINAL PLAT (MURPHY LARSEN ESTATES) -KAREN LARSEN. ACTIONS TO BE CONSIDERED: To approve a Final Plat (Murphy Larsen Estates) of approximately .98 acres to create a single family lot located at 4261 South Robert Trail in the NE '/4 of Section 25. REQUIRED VOTE FOR APPROVAL: Majority of Council Members Present FACTS: - The subject site is currently vacant and not platted. - The property must be platted before a building permit is issued; the applicant would like to build a single family home on this lot. - All documents and Agreements are anticipated to be signed and in order for execution at the regular meeting of the City Council. ATTACHMENTS (1): Final Plat on page s/ ~S ~~ ~ a 3 E;~ a 9 I 2 ~9 € I F Sg~g$ ~ S S O ~s ~ B 3 :3„ ~ ~ 8 ~ ~i ~f ~ $s ~ r~ gl ~ ~~ ~ ~ ~ $_~ ~ ~ ~ Q L ~~ ~ ~ ~~ al ~ ~ F ~a ~ ~ al ~a fi g ~~ W _ ~~ ~ W= W ~~ ~ ~ W~~ ~ ~ °i I Z x $° ; i Y ~ a #fi o`a ~ ~ z~ }, v'I i g a es ~ ~ ~ '~s - s :1 ~~; 4 W ~ a fi$3 al a y ¢a a' ~~ ~ ~ ~ I ~g~ ~ ~ ~ 's ~$- b ~ a- € ~ a a LL6g _ a ~5~ ~ 3. ~ e SS3 3 a $ ~ gg ~~ a$F a 'a~ ~ a'nfi t ~ ~ # $ ~a :a i3 3 ~s~S ° ~ ~ s Em~~$~~~g~7 _ 3~~~ ~ s ~ ~ ~3I: a z~ s~ c~a ~ . : oo a a '° ~ a e ~ a ~ ~'!j ~a! ~ i FM i ea +~~o J~ ~e s fi s. „ 0 ~ ~ I ~ ~ ¢[ o i ~OS fi 9 ~ ~ 2~ 1up~p . u• ~~ - ~ c ~ ! n ~~ ~ ~ ~3~ ~ ° ~r i9 ~;;4 e$ ~Y bz~ g~ 2 r_, ° ° o ~ ~_ ~ ~ ~y~S c~ ~~ ~ ~ 333 0 ~ s~~ GJ _~ m ~ V a ~ ~ o ~> ; ~i 3 ~ a ~ d~ ;7~E t~ a. 3 ~ = o „~ ~ o ~ o~{i _ ~/! _ _ 4 W x3 ° 3b s w°u !; ~~5g =OU i=3 : 3 o f o ~e o ~~ s .~ wan"! B W ~__~~ 3 AY N0. ~~' R, TRUNx gIGBA ! ' ~ ?7 R ` ',STATE,' ~ ~ ~ I y EXCEL ~~~s.a+ I e ~ 1S1d' '.. c At9 c o I d a v ~~ ="- -'--------'-'ir'i __s? I'Qi'i e:S ~~ii~ .-°---' A rn -- I...____._...__ I ~~ I I I I I v: s I _ i ~ '~' j ~ r_ '' I C _ I - e i ~I ~~ ~Y l ~_ c f$? I _x s ~~ ~: I =~ I ~ ~> oa cos ~ Qs'su 3,YS11.D05 i'i :~,. W w U LL! Agenda Information Memo November 15, 2005 Eagan City Council Meeting U. FINAL SUBDVISION (NICOLS RIDGE 2ND ADDITION) AND FINAL PLANNED DEVELOPMENT - US HOMES. ACTIONS TO BE CONSIDERED: To approve a Final Subdivision (Nicols Ridge 2nd Addition) for phase II and Final Planned Development to create 16 Lots and 1 Outlot (4 buildings 4 units each) for property in the SW '/4 of Section 19 south of Cedarvale Mall. REQUIRED VOTE FOR APPROVAL: Majority of Council Members Present FACTS: - The City Council approved a Preliminary Planned Development and Preliminary Subdivision to create 230 units at the May 21, 2002 meeting. - The City Council approved a Final Planned Development and Final Subdivision for Phase I creating 88 lots, 56 attached townhomes and 32 row houses at the June 1, 2003 meeting. - The City has entered into a TIF assistance agreement with US Homes. - All documents and Agreements are anticipated to be signed and in order for execution at the regular meeting of the City Council. ATTACHMENTS (1): Final Subdivision on page s~ 3 5pg .~° ~}i' ~aE ~~ 3 i~ ~i 5~a~~o~ ~~~' SAS„ > ..E '~5_. Sys ~~z Ef c, si 0 g~. s~4~aa3 ~5«~ Ej $.e~fisia '~~ • o z -~,a s , , "4 i~ . A. ~ l ~ s3 'n '$. \ ~~ - y..' Y ~<-0 ~` ,tr:,, ~.~ ~~ ~~t N W a: ~ ~ ~ $ ~~~ O _ SLOT zs 3 OU 4 ~~ Z ~ ~~ _~ ~.~_ i p ~ . ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~~ / ~ ~C ~~ ~ ~ 4 ~ Off, ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ d"yP ~ ~ `~J 8 d ~ U ~ ' F S , 4 u ~ 2 S ~ a n LL c Q n e ~ f 4 ~ 2 o ~ V $ vi ~ O O N U Q. L1J C.f~ ~''~ ~~ Lt.j U W Agenda Information Memo November 15, 2005, Eagan City Council Meeting V. REFER BUSINESS ASSISTANCE POLICY AND PUBLIC FINANCING ASSISTANCE POLICY UPDATES TO COUNCIL FINANCE COMMITTEE ACTION TO BE CONSIDERED: To refer consideration of an update of the City's Business Assistance Policy and Public Financing Policies to the Council Finance Committee. FACTS: - As part of the work plan for the EDC, the Commission proposed and the City Council approved a goal of updating the City's Business Assistance Policy and Public Financing Assistance (TIF, etc.) policies. - Prior to suspending its meetings, the EDC and its Finance Committee had been working on these updates, but they had not finalized them for recommendation to the City Council. It would be appropriate to complete these items and bring them forwazd to the Council for consideration. - To facilitate finalization of the policies and clarify remaining issues for Council consideration, staff is requesting that they be referred to the Council Finance Committee. ATTACHIVIENTS: None. SS Agenda Information Memo November 15, 2005 Eagan City Council Meeting W. CONTRACT 05-06, I-35E CROSSING/ PEARLMONT HEIGHTS/ QUARRY PARK -TRUNK WATER MAIN IMPROVEMENTS ACTION TO BE CONSIDERED: Approve the final payment for Contract OS-06 (I- 35E Crossing/ Pearlmont Heights/ Quarry Park -Trunk Water Main Improvements) in the amount of $11,404.30 to Veit & Company, Inc., and accept the improvements for perpetual City maintenance subject to warranty provisions. FACTS: • Contract 04-07 provided for the public street improvements within the Lexington/Diffley Athletic Facilities to serve the development of Lexington Ridge, as petitioned by the developer, Mr. Ray Miller. • The project costs are being paid for by the developer. • These improvements have been completed, inspected by representatives of the Public Works Department, and found to be in order for favorable Council action of final payment and acceptance for perpetual maintenance subject to warranty provisions. 56 Agenda Information Memo November 15, 2005 Eagan City Council Meeting X. CONTRACT 05-01, CITYWIDE STREET OVERLAYS ACTION TO BE CONSIDERED: Approve the final payment for Contract OS-O1 (Citywide -Street Overlay Improvements) in the amount of $81,005.31 to Northwest Asphalt, Inc., and accept the improvements for perpetual City maintenance subject to warranty provisions. FACTS: • Contract OS-O1 provided for the bituminous overlay of the streets in the Windcrest - Park Ridge - Deerwood -Denmark/ Walden Heights -Twin View Manor/ St. Francis Woods Additions neighborhoods, as authorized by the City Council under City Projects 912, 913, and 916, respectively. • These improvements have been completed, inspected by representatives of the Public Works Department, and found to be in order for favorable Council action of final payment and acceptance for perpetual maintenance subject to warranty provisions. S~ Agenda Information Memo November 15, 2005 Eagan City Council Meeting Y. DEVELOPMENT ACCEPTANCE & MAINTENANCE AUTHORIZATION ACTION TO BE CONSIDERED: Acknowledge the completion of the following Development Agreement public improvements and authorize perpetual City maintenance subject to warranty provisions. ' Contracts: • 02-B (Oakbrooke 6th Addition); • 02-P (Woodgate Cove Addition); • 02-U (Waters Edge Addition); • 02-V (Eagan Heights 3`d Addition); • 04-F (Long Acres 1St Addition). FACTS: • Long Acres 1St Addition, Eagan Heights 3Ta, Oakbrooke 6tn Addition, Waters Edge Addition and Woodgate Cove Addition, were constructed within the City of Eagan over the past few years. These developments required the installation of public sanitary sewer, water main, and storm sewer, along with grading and new street construction, which was all performed privately by the developers under the terms and conditions of the individual development contract agreements. • The improvements have been completed, inspected by representatives of the Public Works Department and found to be in order for favorable Council action for acceptance for perpetual maintenance subject to warranty provisions. sg Agenda Information Memo November 15, 2005 Eagan City Council Meeting Z. JOINT POWERS AGREEMENT WITH THE CITY OF ST. PAUL ACTION TO BE CONSIDERED: Approve a Joint Powers Agreement with the City of St. Paul for traffic signal, signage, striping and lighting maintenance. FACTS: • The City of Eagan Public Works Department initiated discussions with the City of St. Paul Public Works Departments in an effort to provide additional alternatives for the maintenance of traffic signals, signage, pavement markings and street lighting. Currently, maintenance of these items is performed by a variety of external public and private vendors. • The Agreement is non-binding and provides the City of Eagan the opportunity to select the most appropriate vendor for a specific situation. • The Agreement has been reviewed by the Public Works Department and City Attorney's office and found to be in order for favorable Council action. 59 Agenda Information Memo November 15, 2005 Eagan City Council Meeting AA. NICOLS RIDGE ADDITION CITY PROJECT N0.03-N ACTION TO BE CONSIDERED: Approve the extension of the development contract for Nicols Ridge Addition (City Project No. 03-N) and authorize the Mayor and Deputy City Clerk to execute all related documents. FACTS: • The City of Eagan entered into a development contract with the developer of Nicols Ridge, a planned development townhome subdivision, on June 1, 2004. • Ms. Sara Jensen, Lennar Homes, Inc., has requested the extension of the time stated in the development contract for completion of the private street (placement of the bituminous wear course) to September 1, 2006. The developer wishes to place the bituminous wear course after the house construction in the subdivision, and the pending Nicols Ridge 2"a subdivision, has been substantially completed. • The Public Works Department has found all terms to be in order for favorable Council action for extension of the development contract. ATTACHMENTS: • Letter of request, page ~~. 60 ~i'" . _ ~~ V .1 ~~ October 28, 2005 Jon Hohenstien Community Development Director City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 RE: Wear Course on Nicols Ridge 1St Addition Mr. Hohenstein: We would like to request an extension to complete the wear course on Nicols Ridge 1St Addition. The expected completion date was September 2005. We would respectfully request that this completion date be extended to September 2006 so that the wear course may be laid and not marked by construction vehicles. Discussion with your engineers say that this is acceptable. Please contact Steve Grohoski at 952-249-3025 if you have any questions. Si cerely, . !~( ~~~n Sara Jensen Land Clerk ~/ 935 East Wayzata Boulevard, Wayzata, MN 55391 • Phone 952.473.1231 • Fax q57 472 ~en~ - ,~-••••-'- '°'"'""'~` Agenda Information Memo November 15, 2005 Eagan City Council Meeting BB. NPDES PHASE II, MS4 GENERAL PERMIT NON-DEGRADATION REVISIONS ACTION TO BE CONSIDERED: Approve a resolution withdrawing the City's request for a contested case hearing with the Minnesota Pollution Control Agency (MPCA) on the proposed revised MS4 General Permit and authorize City staff to send a letter to the MPCA supporting the proposed permit revisions with the Mayor's signature. FACTS: • In June 2002, the MPCA issued the Small Municipal Separate Storm Sewer Systems (MS4s) General Permit. In July 2002, the Minnesota Center for Environmental Advocacy (MCEA) filed an appeal of the MPCA's general stonnwater permit for MS4s. • On March 10, 2003, the City of Eagan and over 200 other Minnesota owners and operators of small MS4s in urbanized areas applied for general permits, and began or expanded existing programs and practices to reduce stormwater runoff. • On May 6, 2003, the Minnesota Court of Appeals, in MCEA versus the MPCA (C6-02- 1243), ruled that Minnesota's MS4 permit must be revised to address issues of non- compliance with the federal Clean Water Act and Minnesota Rule 7050.0185. • In "resolving" the court's decision, the MPCA had allowed the MCEA to primarily assist in reviewing and commenting on the revised permit language. The main area of focus for these revisions had been Minnesota Rule 7050.0185 regarding the non-degradation of state waters. Many of the MPCA subsequent proposed permit revisions were deemed not practical by many of the affected communities, including Eagan. • On April 5, 2005, the City Council adopted a resolution supporting the League of Minnesota Cities (LMC) petition for a contested case hearing with the MPCA on the proposed revised MS4 Permit. • On April 15, 2005, the City of Eagan submitted its own petition for a contested case hearing with the MPCA on the proposed revised MS4 Permit to more fully protect Eagan's legal rights to comment upon the revised stormwater permit. Many of the proposed changes were extensive and ambiguous, creating opportunities for significant additional costs to Eagan and other cities without any benefit to the tangible water quality. • Representatives from the MPCA have been meeting with LMC and City of Eagan representatives over the past six months in an attempt to address the stormwater permit revisions. Likewise, MPCA representatives have met with MCEA representatives to discuss negotiated permit language revisions. • The issues included in the City of Eagan's petition for a contested case hearing have been satisfactorily addressed by the MPCA in the latest draft of the revised MS4 Permit. The MPCA is planning to present the revised MS4 Permit to the MPCA Citizen's Board in January for approval. If the contested case hearing request by the City is not withdrawn it will need to be acted upon by the board. • Engineering staff, including the Water Resources Coordinator, and the City Attorney's office have reviewed the revised permit and found the withdrawal of the request for a contested case hearing to be in order for favorable Council action. 6~ Agenda Information Memo November 15, 2005 Eagan City Council Meeting CC. PROJECT 888. CEDAR GROVE PARKWAY TRAIL AND LIGHTING IMPROVEMENTS ACTION TO BE CONSIDERED: Receive the Draft Feasibility Report for Project 888 (Cedar Grove Parkway -Trail and Lighting Improvements) and schedule a public hearing to be held on December 20, 2005. FACTS: • On September 6, 2005 the City Council directed staff to prepare a feasibility report considering trail and lighting improvements along Cedar Grove Parkway, from Nicols Road to Rahn Road. • In 2001, Contract O1-OS provided for the reconstruction of Cedar Grove Parkway (formerly Beau D'Rue Drive), including the installation of a center median, reconfiguration with one lane of traffic in each direction, construction of anoff-street trail and the installation of decorative street lighting. However, construction of the trail segment and installation of decorative street lighting along Cedar Grove Parkway, from Rahn to Nicols, and was .removed from Contract O1-OS due to difficulties in acquiring timely access easements from some adjacent property owners. A majority of these easements are now available due to acquisition of the parcels by the Economic Development Authority or US Homes in preparation for redevelopment and this project is now ready to proceed as originally planned. • Meetings will be held with the adjacent property owners prior to the public hearing to review and discuss the proposed improvements. • A draft of this Feasibility Report has been prepared and is being presented to the Council for their consideration of scheduling a public hearing for December 20, 2005. ATTACHMENTS: • Draft Feasibility Report, attached without page numbers. ~3 Agenda Information Memo November 15, 2005, Eagan City Council Meeting DD. PROJECT 931, ART RAHN/ HILLANDALE/ MEADOWLARK RD STREET IMPROVEMENTS ACTION TO BE CONSIDERED: Receive the Draft Feasibility Report for Project 931 (Art Rahn/ Hillandale/ Meadowlark Rd. -Street Improvements) and schedule a public hearing to be held on December 20, 2005. FACTS: • On June 7, 2005 the City Council directed staff to prepare a feasibility report considering a street rehabilitation of the streets in the Art Rahn (Kathryn Circle)/ Hillandale/ Meadowlark Road neighborhood, north of Diffley Road on both sides of Blackhawk Road. • The bituminous overlay of the streets within this neighborhood is programmed for 2006 in the City of Eagan's 5-Year CIP (2006-2010). • An informational neighborhood meeting will be held with the adjacent property owners prior to a public hearing to review and discuss the proposed improvements. • A draft of this Feasibility Report has been prepared and is being presented to the Council for their consideration of scheduling a public hearing for December 20, 2005. ATTACHMENTS: • Draft Feasibility Report, attached without page numbers. ~~ Agenda Information Memo November 15, 2005, Eagan City Council Meeting EE. PROJECT 932, SLATER RD/ WHISPERING WOODS/ SLATER ACRES STREET IMPROVEMENTS ACTION TO BE CONSIDERED: Receive the Draft Feasibility Report for Project 932 (Slater Rd./ Whispering Woods/ Slater Acres -Street Improvements) and schedule a public hearing to be held on December 20, 2005. FACTS: • On June 7, 2005 the City Council directed staff to prepare a feasibility report considering a street rehabilitation of the streets in the Slater Road/ Whispering Woods/ Slater Acres neighborhood, south of Cliff Road on both sides of Slater Road. • The bituminous overlay of the streets within this neighborhood is programmed for 2006 in the City of Eagan's 5-Year CIP (2006-2010). • An informational neighborhood meeting will be held with the adjacent property owners prior to a public hearing to review and discuss the proposed improvements. • A draft of this Feasibility Report has been prepared and is being presented to the Council for their consideration of scheduling a public hearing for December 20, 2005. ATTACHMENTS: • Draft Feasibility Report, attached without page numbers. Gs' Agenda Information Memo November 15, 2005 Eagan City Council Meeting FF. PROJECT 800R, CEDAR GROVE REDEVELOPMENT AREA STREET IMPROVEMENTS ACTION TO BE CONSIDERED: Approve an Easement Agreement for Project 800R (Cedar Grove Redevelopment Area -Street Improvements) with the owner of Parcel No. 10-19600-010-01 and authorize the Mayor and City Clerk to execute all related documents. FACTS: • Project 800R provided for the modification of the intersection of TH 13 with Silver Bell Road and Cedar Grove Parkway as outlined and discussed in the feasibility report, as well as modifying associated business accesses. The project also included the installation of trails along the reconfigured streets. • On April 2, 2002, the City Council approved Project 800R, including the acquisition of all necessary easements. • The street improvements in the Cedar Grove Redevelopment Area required the acquisition of numerous permanent and temporary easements from the adjacent properties, including the Silver Bell Business Center located in the northwest corner of TH 13 & Silver Bell Rd. • Cost estimates were obtained for all required easements. The estimated value of the easement for the property is $85,522.50 and includes the value of lost parking stalls. Interest has been calculated from the date of the right of entry, August 29, 2002, and adds an additional $8,732.78 for a total offer of $94,255.28. Staff has suggested an offer totaling this amount to the property owner. The property owner has consented to the offer. • An agreement between the City of Eagan and the owner of Parcel 10-19600-010-01 (Lot 1, Block 1 Dallas Development 15` Addition) has been prepared providing for the acquisition cost for the necessary easements. • Engineering staff and the City Attorney's office have reviewed the agreement and found it to be in order for favorable Council action. ISSUES: • If the City Council desires to discuss this item, it would be appropriate to direct any discussion to a Closed Session as this is a settlement to an active easement acquisition process. 66 Agenda Information Memo November 15, 2005 Eagan City Council Meeting PUBLIC HEARINGS A. LOT 1, BLOCK 2, KENNERICK ADDITION EASEMENT VACATION ACTION TO BE CONSIDERED: 1) Close the Public Hearing and approve or deny vacating the public drainage & utility easements within Lot 1, Block 2, Kennerick Addition; and, 2) If vacation is approved, consider approval a Final Plat (Kennerick 3rd Addition) to create two lots on approximately 0.92 acres located on the northwest corner of Pilot Knob Road and Buffet Way in the NE'/4 of Section 4. FACTS -VACATION OF DRAINAGE & UTILITY EASEMENT: • On September 29, 2005, City staff received a letter from Ms. Gail McMahon, 1429 Lone Oak Road, requesting the vacation of all of the existing drainage and utility easements on Lot 1, Block 2, Kennerick Addition, generally located north of Lone Oak Road and west of Pilot Knob Road. • 10' wide easements were dedicated as part of the Kennerick Addition plat as the typical lot line easements for drainage and utility purposes. • The purpose of the request is to allow a realignment of the lot line between Lot 1, Block 2 and Outlot C to increase the size of Outlot C for future single-family building purposes. • All necessary replacement easements will be dedicated with the re-alignment of the common lot line between the two properties under the Final Plat (Kennerick 3`~ Addition), also scheduled for consideration by the City Council on November 15, 2005. • Notices were published in the legal paper and sent to all potentially affected and/or interested parties for comment prior to the• public hearing. Notices were sent to all the potentially impacted private utility companies. No comments or objections to the proposed vacation have been received. • The request has been reviewed by the Engineering Division and found to be in order for favorable Council action FACTS -FINAL PLAT: • This property consists of two parcels (one lot and one outlot) that are in the same ownership. The existing lot contains a single family home. The outlot is vacant. • The proposed plat creates two lots. Lot 1 is vacant and Lot 2 contains the existing single- family home. • The proposed lots meet minimum lot dimensional standards for R-1 zoning, including setbacks from the existing house. • Lot 2 will continue to take access off Lone Oak Road and Lot 1 will take access off Vince Trail to the north. ATTACHMENTS: • Location Map, page ~ . • Legal Description, graphic, page. • Final Plat - Kennerick 3`d Addition, page 6~ Kennerick Addition City Of ~~~~Il Proposed Vacation -Location Map Engineering Department / ry 10-10-05 ~I ~~i iv~r~i~, ~~,~~v~ tiuui i i i~ 9 8 ~ 6 5 ~ NCE TRA ~ 3 ~-----~ kF 1 I q~0 F ~ ITi R% 2 oN ~ 0 1 I 3 ,~ 1 0 1 2 ~ l ~ I L-----~ ~ 6 EASEMENTS TO BE VACATED 5 Q 061- 00 051- 00 U~J LONE OAK ROAD ,~ Lot 1, Blk. 2, Kennerick Add. Clty Of ~~~~Il Easement Vacation -Location Map 10/10/05 Engineering Department ti q ti W ~~ a~ ,p E~ @e ~ ya¢¢ '~, E~ c ~~ ~ i _ y ~ ~ ', < ~; u a ~.~ 3 ~ ~ 9~ i ~o ~ a ~ ~~ g § ~ ~ ~ ~_~ a ~ ~e~ I s I I I ~~ ~~ C~ `C ~J I <~ I 1 F- ~ I t I * ~AC2o ~ wzo7' UJ i `~- i I ~ ~ ~ ;' I ~as `~I / R 1 f ~~ ~,' c~ ~, ~\ ~~ . . ~, it: ~~ --~_____ ____ ______________ _J --- ~ -sue _~ J41~0 N__C9N _____~ ~~ ~V - l I` ~ \~ ~ O ! ~Li ~ / I I ~_____________p i__________J ____., L • .N.Dp00 s ~.a.,~, A /n/ / //7/7~/ / VV/1 /VV r ~A/'> ~/~1/l/-lA/A/-7i/ V/YG ~%//!~J/V/V_Ji// ~ ~ g~ ~ i~ ~ ~~~ ___, ¢ 4~ ~ ,a ~ ~~~ ~~ ~ I ins ~`) ~' I Jv \~ ~r ~J~ lip C~ ~ ~~ ~ ~` ;. r ~ e ~ c~ ~~ ~~ ~, z ~~~ ~~ o~ s~ ~ ~ ~. ~ ~~ ~° .e 9 ~o i~~ r ~~d ~ i p5pe ~ ~ ~98 ~~~ ~ ~~; ~ I a1 l ~ ~~ R ~ ~ ~ t ~ ~~~ ~ ~ ~ g ~ 8 ~ ~ ~ {{ a ~e ~~e ~ ~. ~ ~ ,~ 9 ~ b 9 i~ ~~~ 6 ~ ~ 9 ~ a ~ ,~ ~~ % ~ Y ~ s o ~RI E L ~` "e e Y 6 ~ ~ ~ $ ~ I ~~~ $ ~ ~ ~ e !: ~ ~'2 2e J ~e ~ ' ~ $ x o E, ~ ~g~ ~ .a ~ ~~ s do ~x I ~ kg ~ s~ ~ e~ ~ ~ s ~~ £ ~ ~ ~~ ~= sE ~ f ~~ ~~° ~~~ ~ __ m ~~ a~ ~~ ~ ~ gE „e ~~ xf €3 m eg a=~ e. A //7/ / //7/7G /vtiil /vvr / /7A / ~ vi vG ~ /mil/~ /_ lA /A / -l i / .i. /ii?~i vrv3 ~i 1 ~j000 M UMI _ Agenda Information Memo November 15, 2005 Eagan City Council Meeting B. LOT 2, BLOCK 3, THE OAKS OF BRIDGEWATER 2NDADDITION EASEMENT VACATION ACTION TO BE CONSIDERED: Approve the vacation of a portion of the public drainage and utility easements within Lot 2, Block 3 The Oaks of Bridgewater 2na Addition. FACTS: • On October 5, 2005, City staff received a letter from Mr. Patrick Koller, 3819 Hunters Overlook, requesting the vacation of a portion of the existing drainage and utility easement on Lot 2, Block 3, The Oaks of Bridgewater 2na Addition, south of Wescott Road and west of Elrene Road. • Public easements were dedicated as part of The Oaks of Bridgewater 2na Addition plat for drainage purposes. • The purpose of the request is to allow the construction of a pool in the backyard of Lot 2, Block 3, The Oaks of Bridgewater 2na Addition. • The configuration of the proposed pool and amenities would encroach upon some of the existing drainage and utility easements, but would not adversely impact the site drainage or existing and future utility alignments. • The existing drainage and utility easement is well in excess of the typical 10' wide rear lot easement for drainage and utility purposes. Staff has reviewed the site topography and existing utility as-built plans and cannot find a supporting reason for the non-standard easement that exists. • Notices were published in the legal paper and sent to all potentially affected and/or interested parties for comment prior to the public hearing. Notices were sent to all the potentially impacted private utility companies. No objections to the proposed vacation have been received as of the date of this report. • The request has been reviewed by the Engineering Division and found to be in order for consideration by the Council. ATTACHMENTS: • Location Map, page ~~ . • Legal Description, graphic, page. ~i yDOTA HEIGHTS 4 muuwa Ica ~ eu2 ~~ ~ g s~ ~ 8 Q ~~ ~m ~ ~ 2° ~ ~ ~ ~~ J2y ~ d ti~ (oa inL) LONE OAK ROAD ~~~ (~•~b> n ui a TRUNK NWy 55 z O c~ z ~ X 0 ~h J O ~~ Y y O F ~~~ O '~ a ~ ~ YANKEE DOODLE ROAD (~ ~ y) I '~ p~ Q,'rrf\ Proposed ~ Vacation WESCOTT ROAD ., z /~ .aRO«o~ z O ~p nMC ~ ~ d~" z U rt ~~~ ~ gg ~ B DIFFLEY ROAD anc you ,~' mur inn LEX. P PARKWAY ~ ~O~ ~$ ~ ~ ~ I ~ I Lot 2, Blk. 3 Oaks ridgewater 2nd Add. Clty Of E~~aIl Vacation Location Ma ~ a~ 2-05 Engineering Department p ~ Lot 2, Block 3, Oak ndgewater 2nd. Add. ~~ ty Of ~~~~~ Location Map 10/10/05 Agenda Information Memo November 15, 2005 Eagan City Council VI. OLD BUSINESS A. COMPREHENSIVE GUIDE PLAN AMENDMENT - PASTER ENTERPRISES, INC. ACTION TO BE CONSIDERED: To continue this request to the June 30, 2006 City Council meeting for consideration of a Comprehensive Guide Plan Amendment to change the land use designation from Special Area - Office/Service, to Special Area -Retail Commercial, upon approximately 24 acres located north of Yankee Doodle Road and west of Central Parkway in the SE '/4 of Section 9. REQUIRED VOTE FOR APPROVAL: At least four votes FACTS: - This item was continued from the June 21, 2005 City Council meeting. The applicant has submitted a letter updating the Council on their progress with regard to the development, coordinating development with the adjacent property to the east, securing anchor tenants for the retail center, preparing a traffic study, and the preparation of Preliminary Subdivision and Preliminary Planned Development application submittals. - Paster Enterprises needs additional time to prepare the detailed plans and architectural guidelines necessary for the Preliminary Planned Development and Preliminary Subdivision submittals and to recruit specific retailers for this development. - Paster anticipates submitting the other corresponding applications next spring (2006). Once submitted, the Comprehensive Guide Plan Amendment (on the Gangl property), the Preliminary Planned Development and Preliminary Subdivision applications must go to the Advisory Planning Commission and then to the City Council, a process that takes 6-8 weeks. - Continuing this request to the June 30, 2006, City Council meeting date should afford time for Paster to secure anchor tenants for the development and prepare the additional submittals and get through the public hearing process with the City's Advisory Planning Commission. 60-DAY STATUS: Deadline was previously extended to December 31, 2005. The applicant has requested a further extension to June 30, 2006 with this current request for a continuance. ATTACHMENTS (1): Correspondence from Paster Enterprises dated November 1, 2005, pages ~ through ~~ LLC DEVELOPMENT AND MANAGEMENT OF SHOPPING CENTERS C~~~i C~ 2227 University A~~enue • Saint Paul, ti9N 5il 14-1677 • 651-646-7901 • Fax 651-646-1, ~9 ' www.pasterenterprises,com CENTRAL PLAZA 45th & Central Ave. N.E. Minneapolis, Minnesota November 1, 2005 CRYSTAL SHOPPING CENTER Bass Lake Road & West Broadway Crystal, Minnesota CRYSTAL TOWN CENTER Bass Lake Road & West Broadway Crystal, Minnesota Ms. Pamela Dudziak City of Eagan 3830 Pilot Knob Road Eagan, MN 55112-1897 RE: Perron Property Eagan, MN DODDWAY SHOPPING CENTER Dear Ms. Dudziak, Smith & Dodd Road West Saint Paul, Minnesota In preparation for the November 15, 2005 City Council Meeting, we would like to provide an update on our proposed Retail development and LAKEVILLE CROSSING the continuance that was granted relating, to our Comprehensive Land L'se 160th & Cedar Avenue Guide Plan Amendment., Presently, we have either completed or Lakeville, Minnesota proceeded as far as possible with the items required for in the Preliminary Planned Development application. In order for us to complete the remaining requirements and submit, we need to have the exact sizes and LEXINGTON PLAZA SHOPPES locations for the proposed retail building locations defined .Currently, we Lexington & Larpenteur have not finalized who these potential anchor retail tenants will be. Roseville, Minnesota At this time, we would like to request that the application for the MENDOTA PLAZA Comprehensive Land Use Guide Plan Amendment previously submitted State Highway 110 & Dodd Road be continued until June 30, 2006 when we anticipate appearing before the Mendota Heights, Minnesota City Council to discuss the application for the Preliminary Planned Development. We hope to submit the application for the Preliminary Planned Development in April, 2006 which would result in an appearance MouNDSVIEw sQuARE before the City Council in May or June, 2006. Our hope is that we would Highway 10 & Long Lake Road be able to start construction in the Fall of 2006. Mounds View, Minnesota Much has happened in the last six (6) months. We have option agreements NORTHWAY SHOPPING CENTER to~ purchase both the Perron Property and the Gangl residence at 1555 State Highway 23 & Woodland Yankee Doodle Road. Additionally, we have been working with MSP LexingtonlCircle Pines, Minnesota Commercial to connect their development of the medical/professional building on the Duke parcel with our proposed development. Additionally, we have completed and updated our Traffic Study as requested by the City SIBLEY PLAZA and shared such results with staff, we have completed our preliminary West 7th Street & Davern Civil drawings for the development, and we have updated the wetland Saint Paul, Minnesota delineation study for the development. SOUTHVIEW SHOPPING CENTER ~ ! . , Southview Boulevard & 13th Ave. S. '~ South Saint Paul, Minnesota i ` ~ ' !% Previous letters to the City indicated that we had hoped to have an indication of which retailers would be the strong candidates as anchor tenants by now. While we are in active negotiations with a number of retailers, ultimately getting a retailer to commit to a project requires that a number of other retailers also are committed. This co-tenancy requirement often takes time to sort out. Different retailers may be on a different timeline for adding a location within a particular market. Additionally, as mentioned in our previous letter, most retailers we are working with also have a lengthy process for approving new retail locations. Usually, these include approval by an internal real estate committee which meets monthly or less frequently, an internal detailed study of the site and sales projections, and a site tour by the head of real estate and other decision makers. Generally, these site tours which kick off the _entire internal approval process take months to schedule given work loads of a national retailer covering several states and in some instances the entire country. We are working diligently on this development, but have been delayed due to working through several retailer's timelines that are longer than ours. We believe this is still a strong retail site and we want to ensure that we come forward with the most appealing lineup of retailers. We look forward to appearing before the City Council on November 15, 2005, and continuing to work with you on the successful development of this project. Sincerely, Paster Enterprises, LLC. ~~,~;' Howard Paster Principal CC; E. Paster K. Henk '76 Agenda Information Memo November 15, 2005 Eagan City Council B. CONFIRMATION OF FINDINGS OF FACT, CONCLUSIONS & RESOLUTION OF DENIAL - ATTRACTA SIGN (JOHN DEERE) ACTION TO BE CONSIDERED: To confirm the Findings of Fact, Conclusions & Resolution of Denial of the Planned Development Amendment request of Larson Properties to allow an interim use of expanded parking associated with airport shuttle service at the Microtel Inn hotel on property located at 3000 Denmark Avenue, legally described as Lot 1, Block 2, Eagandale Center Industrial Park No. 9 in the NE'/4 of Section 10. FACTS: - At its regular meeting on November 1, 2005, the City Council directed preparation of Findings of Fact, Conclusions & Resolution of Denial regarding the Planned Development Amendment request to be considered at the November 15, 2005 City Council meeting. - Due to a misunderstanding about the Council meeting dates, the applicant was not present at the November 1, 2005 City Council meeting. The applicant submitted a letter requesting to be heard on this item at the November 15th Council meeting. - The Final PD Agreement for this building states "All signage shall comply with City Sign Code requirements for Business Park zoning districts." - The City Code allows one free-standing monument sign per building. - Attracta Sign is requesting approval of an additional free-standing monument sign for one of the building's occupants, John Deere, on the northwest comer of the lot. - This multi-tenant building has an existing monument sign at the entrance to the site which provides space for individual occupant names. - The applicant has indicated that the separate monument sign would allow John Deere to maintain their national identification for corporate facilities and would help with wayfinding to the business since many visitors will not be familiar with this area. Also, the applicant indicated the existing monument sign is not illuminated. - The APC held a public hearing on October 25, 2005 and did recommend denial of the PD Amendment. ISSUES: - The reasons stated by the APC for the recommendation of denial were that it would set a bad precedent; the building signage for John Deere is visible; the existing monument sign is visible; and the proposal is inconsistent with the City Code and presents no public benefit to the City. - The APC stated their preference that John Deere work with the building owner to better utilize existing signage. ~~ 60 DAY AGENCY ACTION DEADLINE: November 20, 2005 ATTACHMENTS (4): Findings of Fact, Conclusions and Resolution of Denial ages ~ through ~a Letter from Applicant dated November 7, 2005, page October 25, 2005 APC Minutes, pages through Staff Report, pages~through~ ~~ BEFORE THE CITY COUNCIL CITY OF EAGAN, DAKOTA COUNTY, MINNESOTA In Re: Application of Attracta Sign FINDINGS OF FACT, for a Planned Development Amendment to CONCLUSIONS AND Allow Two Monument Signs for One Building RESOLUTION at Lot 1, Block 1, Blue Ridge 5th Addition This matter came before the Eagan City Council at its meeting of November 1, 2005. The Council received and considered the October 20, 2005, Planning Report; input from City staff; minutes of the public hearing held by the Advisory Planning Commission on October 25, 2005; evidence from the neighboring residents, together with all existing files, records and prior proceedings and material as presented to the Council. No one appeared on behalf of John Deere at the meeting of the City Council on November 1, 2005. Based upon all the files, records and input which was presented at the meeting, the City Council makes the following Findings of Fact, Conclusions and Resolution. FINDINGS OF FACT 1. The application by Attracta Sign, on behalf of John Deere (the "Applicant") for a Planned Development Amendment to allow for two monument signs for one building located at Lot 1, Block 1, Blue Ridge 5th Addition, in the City of Eagan (the "Property") is properly brought before the Eagan City Council. 2. The Property is owned by CSM Corporation and is developed with a 45,000 square foot warehouse/manufacturing building. The building has multiple tenants, one of whom is the Applicant, John Deere. 3. The Property is currently zoned PD, Planned Development, within the City's Zoning Map and is intended to accommodate the development of low intensity office, light '~9 industrial and supporting commercial service uses that may be suitable in relative close proximity to non-industrial development. 4. Adjacent to the north of the Property is vacant land currently zoned as PD, Planned Development; adjacent to the south of the Property is residential land zoned A, Agricultural; adjacent to the east of the Property is office space (Ecolab) and is zoned as PD, Planned Development; and adjacent to the west of the Property is office space and vacant land zoned as A, Agricultural and PD, Planned Development. 5. Under the existing City ordinances regulating the use of the Property, only one monument sign is permitted per building. 6. The Property has an existing monument sign on the north side of the entrance driveway from Lone Oak Road. 7. The existing monument sign provides space for each individual tenant's name. 8. John Deere, through Attracta Sign, is requesting approval to erect a second monument sign for the building, specifically and only for John Deere. 9. In addition to the current monument sign, there is abuilding-mounted sign on the Property, identifying John Deere tenant space. 10. Several properties in the area are owned by CSM Corporation and have the same type of monument sign. Each property has one monument sign. 11. All other buildings within the planned development and adjacent property conform to the Sign Ordinance. 12. The reasons John Deere gives for requesting an additional monument sign are to: (1) maintain its "national identification requirements" for its corporate facilities; and (2) enable visitors to its facility a way to easily identify and find their way to the building. 8"U 13. The City's Advisory Planning Commission voted 3-2 to deny Attracta Sign's/John Deere's application for an additional monument sign so as not to encourage other multiple tenants of buildings within the planned development to apply for their own monument signs. CONCLUSIONS 1. The matter is properly brought before the Eagan City Council. 2. There is no benefit to the City or its residents in permitting John Deere to erect a second monument sign. 3. Permitting John Deere to erect a second monument sign would set an unacceptable precedent for the multiple tenants within the Planned Development and other properties in the office park area. 4. John Deere has the option of working with the property owner to obtain an acceptable sign configuration that is also compatible with the City's Sign Ordinance. 5. By the greater weight of the record and the information presented, it is determined by the City Council of the City of Eagan that an amendment to the planned development is not warranted and John Deere's signage needs can be accomplished through an alternative, conforming method. 6. The Property retains a viable use without a second sign. RESOLUTION The City Council of the City of Eagan does hereby resolve that the Applicant's requests for a Planned Development Amendment to allow two monument signs for one building, is hereby denied. ~~ Dated at Eagan, Minnesota this day of , 2005. CITY OF EAGAN By: Pat Geagan Its: Mayor By: Maria Petersen Its: City Clerk 8~ 7420 WEST LAKE ST. MINNEAPOLIS, MN. 55426 f November 7, 2005 City of Eagan Attn: Pam Dudziak 38330 Pilot Knob Road Eagan, MN 55122-1897 Re: John Deere -Sign Variance Deaz Ms. Dudziak, T T~R~A .ETA ~ . _ _ _ , Igo N~ _ _ [952] 933-7730. FAX [9521 933-7883 ~ ~'__ -_ We request an opportunity to state our case for the additional monument sign for John Deere, located at 2995 Lone Oak Drive, at the November 15th City Council meeting. We missed the November 1~` meeting, due to being given a planning calendar that stated the meeting was to be held on November 3'~. Si.>~cerely, ' ~~ f` Crr en 1 President Attracts Sign g' 3 New Business A. John Deere Applicant Name: Attracta Sign Location: 2955 Lone Oak Drive; Lot 1, Block 1 Blue Ridge 5th Application: Planned Development Amendment PD Amendment to allow two monument signs for one building. File Number: 01-PA-12-09-05 Chair Heyl opened the public hearing. Craig Murray, representative for John Deere discussed the,,need for the Planned Development Amendment to allow two monument signs for one building. There being no public comment, Chair Heyl closed the public hearing and turned the discussion back to the Commission. Member Chavez asked if the current monument sign. or the building signs are illuminated. Mr. Murray stated the building signage is illuminated but the monument sign is not illuminated. Chair Heyl stated it is a deviation from the City Code and .this particular area needs consistency in regards to signage. Approval of this item would be setting a signage precedent in an area with many multi-tenant buildings. She stated if the signage is not visible, the owner should reevaluate the design of the sign. Member Bendt asked if the applicant had worked with the building owner to address the concerns of John Deere. Mr. Murray stated he had not. Member Chavez stated building signage is visible as you approach the site and becomes less visible as you get closer to the building. He agreed with Chair Heyl in regard to the precedence.. Member Dugan stated a specific situation could be noted because of the training aspect of the facility. He stated he believes the City needs to recognize that these national companies have signage needs. He stated he will vote in favor of the item. Member Keeley stated agreement with Member Dugan. Planner Dudziak stated she is not aware of a similar situation of two monument signs for one building. Member Bendt stated disagreement with a second sign; however he stated he would support modifications to the present sign to increase visibility. 8' Y Member Chavez moved, Member Bendt seconded a motion to recommend denial of a Planned Development Amendment to allow two monument signs for one building at 2955 Lone Oak Drive, legally described as Lot 1, Block 1, Blue Ridge 5'h Addition, located in the SW '/4 of Section 1 due to the following reasons: 1. An additional monument sign for the subject site would set an undesirable precedent. 2. Present building signage is visible. 3. Present monument sign is visible; however, the design could be improved. 4. Consistency in the area is needed and the City of Eagan would not benefit from the PD Amendment. A vote was taken: Aye: Chair Heyl, Members Bendt, and Chavez. Nay: Members Keeley and Dugan. Motion carried 3-2. V. OTHER ITEMS VI. VISITORS TO BE HEARD (FOR THOSE NOT ON AGENDA) There were no visitors to be heard for items not on the agenda. VIL OTHER BUSINESS City Planner Ridley announced that a workshop would be held on Wednesday October 36, 2005 at 6:30 p.m. along with a workshop on November 10, 2005 at 5:30 p.m. VIII. ADJOURNMENT Member Bendt moved; Member Chavez seconded a motion to adjourn the Advisory Planning Commission meeting at.6:53 p.m. All voted in favor. Motion carried 5-0. &'S PLANNING REPORT CITY OF EAGAN REPORT DATE: October 20, 2005 APPLICANT: Attracta Sign (John Deere) PROPERTY OWNER: CSM Corporation REQUEST: Planned Development Amendment CASE: O1-PA-12-09-OS HEARING DATE: October 25, 2005 APPLICATION DATE: Sept. 21, 2005 PREPARED BY: Pamela Dudziak LOCATION: 2955 Lone Oak Drive COMPREHENSIVE PLAN: SA, Special Area ZONING: PD, Planned Development SUMMARY OF REQUEST On behalf of John Deere, Attracts Sign is requesting approval of a Planned Development Amendment to allow two monument signs for one building at 2955 Lone Oak Drive, legally described as Lot 1, Block 1, Blue Ridge 5~' Addition, located in the SW '/a of Section 1. AUTHORITY FOR REVIEW Chapter 11, Section 11.50, Subdivision 5 states, in part, 1. The provisions of this chapter maybe amended by the majority vote of the council, except that amendments changing the boundaries of any district or changing the regulations of any district may only be made by an affirmative vote oftwo-thirds of all members of the council. 2. The Council shall not rezone any land in any zoning district or make any other proposed amendment to this chapter without first having referred it to the planning commission for its consideration and recommendation. BACKGROUND/HISTORY This property was part of the Laukka-Beck Planned Development which was established in 1985. With the City-wide update of the Comprehensive Guide Plan in 2001, the property was designated Special Area. The Special Area plan designates the site for office use. The property is currently zoned PD, Planned Development, and is generally considered similar to the BP, Business Park, zoning district. ~'6 Planning Report - Attxacta Sign (John Deere) October 25, 2005 Page 2 A Final Planned Development for this building was approved in 2003 and the building was constructed in 2004. Those development plans showed three buildings on a 20-acre site. The site was recently subdivided into two parcels, leaving the existing building on a 7.5-acre parcel. EXISTING CONDITIONS The site is developed with an existing 45,000 sq. ft. warehouse/manufacturing building which was constructed in 2004. Part of the building has been leased to John Deere Company. The site contains an existing monument sign on the north side of the driveway from Lone Oak Drive. The existing driveway and monument sign are located at the south end of the property. SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: Existin Use Zonin Land Use Desi nation North Vacant PD, Planned Development SA, Special Area (O/S, Office/Service South Residential A, Agriculture SA, Special Area (NB, rural Nei boyhood Business) East Office (Ecolab) PD, Planned Development SA, Special Area (O/S, Office/Service West Vacant and A, Agriculture and PD, SA, Special Area (RC, Retail Office Planned Develo went Commercial & BP, Business Park EVALUATION OF REQUEST City Requirements -The City Code permits one ground (monument) sign per building. Monument signs are limited to seven feet total height, with afour-foot maximum height of the sign area. Applicant's Proposal -The applicant is proposing to install a monument sign for one of the building's occupants; John Deere, on the northwest corner of the lot, on the existing berm. The proposed monument sign is 6'7" in height. The sign consists of a one-foot base, a 5'7" high backing panel and a 3'6" high sign message area. The sign is 14'9" long. The sign is proposed to be constructed of painted aluminum panels. Illumination is proposed to be from external ground mounted lights. S7 (Existing Monument Sign) Planning Report - Attracta Sign (John Deere) October 25, 2005 Page 3 Landscaping -The proposed sign location does not conflict with any existing landscaping. No new landscaping is proposed. Applicant's Narrative -John Deere has submitted a narrative which states that the separate monument sign for John Deere "allows John Deere Company to maintain their national identification requirements for corporate facilities." Further, "it is of particular importance for this facility [because it] will be drawing clients on a regular basis from many different States throughout the Midwest. The monument sign will serve not only brand identification but also as a `wayfinding' sign to the facility." The stated benefit is "to the surrounding properties as there will be less confusion of traffic flow to the property since most of the clients aze unfamiliar with the area." Site Conditions -John Deere occupies a center space in the building and has a building mounted sign. The John Deere building mounted sign is not very visible from the north because of the berm upon which the second monument sign is proposed to be placed. The sign, driveway and building are more visible from the south. Conforming Plan - A conforming plan would utilize only one monument sign. Analysis -The Sign Ordinance allows one monument sign per building. The property contains an existing monument sign at the driveway entrance. The existing monument sign provides space for individual occupant names. The proposed monument sign is consistent with the current design standards in the City Code and the sign appears to be compatible in design appeazance to other monument signs in this area, however, the John Deere sign should have a decorative block base to match the existing monument sign for this building. The installation of two ground signs for a single building is a deviation from City Code standards. Several buildings in this area were developed and are owned by CSM and all have the same type of monument sign, which identifies the building and has space for tenant names. The single-occupant buildings in the area, such as Ecolab, also have monument signs which identify the business, similar to what is proposed for John Deere. Thus, each building has only one monument sign and the signage is similar throughout The Waters business park area. Because many of the buildings in the area are multi-tenant, staff has concern that the proposed tenant ground sign for this building will lead to other separate tenant ground signs, which would be inconsistent with the Sign Ordinance and the established sign pattern within this office park. The acceptability of the proposed deviation to allow two monument signs for one building is a policy matter to be determined by City officials. SUMMARY/CONCLUSION In summary, the applicant is requesting approval of a Planned Development Amendment to install a second monument sign for the building located at 2955 Lone Oak Drive. The proposed sign design is consistent with City Code requirements, however, the installation of two ground monument signs for one building is a deviation. Staff is concerned with the precedent this 8~ Planning Report - Attracta Sign (John Deere) October 25, 2005 Page 4 request may set in an office/showroom/warehouse area with many multi-tenant buildings. The acceptability of the deviation is a policy matter to be determined by City officials. ACTION TO BE CONSIDERED To recommend approval of a Planned Development Amendment to allow two monument signs for one building at 2955 Lone Oak Drive, legally described as Lot 1, Block 1, Blue Ridge 5~' Addition, located in the SW %4 of Section 1. If approved the following conditions shall apply: 1. An Amendment to the Planned Development Agreement shall be executed and recorded against the property at Dakota County. The following exhibits are required for the Planned Development Amendment Agreement: • Site Plan • Sign Plan 2. The monument sign shall be located at least 10 feet from all property lines. 3.. The John Deere sign shall have a decorative block base to match the existing monument sign for this building. 4. A sign permit is required before the sign is installed. 8'9 Eagan Boundary Location Map N Right-of-way Parcel Ares 0 Park Area ® building Footprint p ° "°~+. -- ~ v o ® ~ ~. P `` d ~ Subject Site ~ i _ o ~ i P o ~ O ~ 4`' ~ c ~ e O~ O e ~ S 1 8 $; ~' % d' o ~ ~ ~ ® 0 m ~ ~ ~ ~ ® ~~ g co p .e ~ @ •~ O Mb ^ ^ ,O o® ® ~ ` ® @ ~ O. ~ o _ e ®B ® ~~ ~ m® ® v e o ~ e ~~ ~ . v. a so ~ v ® o ^ F. o ~ a _ ~ >`q - :.~ ~ - ~- ~1 Lw b .L' 0 c ~_ ~ Y. T ~~~ ~ ~ ~ t t m ® i .L ~.1 ti 6 . Y q d ~ E ~'b r y-. 2 ~. Y ~ ~ ~ ~ ~ ~ ~ ~ ~ ® S l t ~ ~ - ~ ° 9 ~. ~ ~ a e v ~ •«" ~ ~ ' ~ ~e s t ~ s o ® ..~... i s ~e ~® ~taP me p - s- ® - *~..... ® ~ _ p O ~ a 8 ® _. _. __ . __~ ... _. a ~.. _.:,:_ _ _.___ .. fooo o fooo Zooo Feef Development/Developer: Attracta Sign - CSM Properties Application: Planned Develop mendment Case No.: 01-PA-12-09-0 ~~ Of Nng g ~ Map Prepared using 1. Pared base map data provided by Dakota County OfRn of qS and k current as of April 2005 N w E LQ~(Ljl THIS MAP IS INTENDED FOR REFERENCE USE ONLY I Tha Glty of Eagan and Dakota County do not 9uanntee the accuracy of this information and are S Current Zoning and Comprehensive Guide Plan Land Use Map Attracta Sign - CSM Properties PD Amendment Case No. 01-PA-12-09-05 Zoning Map ~~ PD PD Location Current Zoning: PD PD PD Planned Development t. .~ .E PF A PD .~ i t1 PD A PD 4~~ ~'~ ~nrr, pq s. p G cso o coo ~zoe ...e ~ .r •~o- NB .7 ~ PD Comprehensive Guide Plan Land Use Map I '~,~ ~, ~" sn Location ~ ° sa sn Current Land Use Designation: - ~ E SA Special Area 4 IND ` Rc sa '~ oo o coo tzoo r..e RC ~ O15 ~~ *o'nam.r..o,, p LD ~ RC AND ~~~ D ~ MD i ~rvkaa, Mt . r ! ` JOHN DEERE' ~ ~<-1'~ ~ ~ • MONUMENT SIGN \ ~'. /~ ~ as 4•~,~ I I \ h ~'t \ SQ \ f I y ^',r Re ~~ ~ EXISTING •' ' ~ ~~ _~r---~ ` r ~- °?d~. MONUMENT '1~ ~J ~~ry J h~ : ! ' . , i R.,:".,;. 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F. cs :x } 2' r - as Exhibit C JL'!`I-10-2005 13 ~ 30 ROCHON CORP 8'-O' 7635598101 P.02i02 (Z 1. cY~ ~ ~5 ._ w~•+Ir c~ the TIYA~'E S~wG l' ~ .' ~ ' E O P~ 5 ~ ~'- X LO XXX AK DRYVE N p,t~ .. `' ~i A ~ ~ ~ FUTURE TENar~T r~AnnE v Q FIAT PC `~ ~ - ~ •FUTURE TENAPJT NAME ~ BacK6r: ~_ ,+41 C.OPY~Y'fr 1 '~ 4 - ~ oWM£OA71D1MtLt0®OY ~~ C S M • s~ eu s~ 2-395-~00o WFIEAr R ~ r . : p . u • I I• • • 6R,4D~ •- _ • n •u I 12' ROG~ I ' ~ I ~ . == WHEAT ~ ``==`~~ 2 ~ I 4 I ~ 0 ~r ~ ~ , 1 • I~ ~r 1 ~ ~./ ~ o- . ~ ~ J i Q I ~~ i j ~ ~ L------ ~------------------ ---J • I MoI~UM~~IT 51 GN ~1~~Y~TIo~ I ~ ,+~ sc,Al..e: v7.~1,~. ~~ c . +~ ~~ ~, • ~~ EXISTING MONUMENT SIGN -J JoHty D~~~~ August 11, 2005 RE: Planned Development Amendment for Waters V Business Center Subject address: 2995 Lone Oak Drive, Suite 100 Eagan, MN 55121-1553 Existing Land Use: Multi-tenant, commercial Surrounding property zoning and land use: Multi-tenant, commercial To whom it may concern: John Deere Company 2001 W. 94'" Street, Bloomington, MN 55431 USA Phone: 952-887-6336 Fax: 952-887-6244 E-mail: EhlisDavidG~JohnDeere.com David G. Ehlis Sales Branch Manager CSM Properties, Inc. of 500 Washington Ave, Minneapolis, MN has given written permission (Exhibit A & B-1) to JOHN DEERE COMPANY for a monument sign (Exhibit C} at the above named property. In doing so, this allows JOHN DEERE COMPANY to maintain their national identification requirements for corporate facilities. It is of particular importance to identify this facility with the proposed monument sign due to the fact that this facility will be drawing clients on a regular basis from many different States throughout the Midwest. The monument sign will serve not only brand identification but also as a "wayfmding" sign to the facility. This will be a benefit to the surrounding properties as there will be less confusion of traffic flow to the property since most of the clients are unfamiliar with the area. The proposed monument~sign has no impact on the subject property and land use nor to City services such as sewer, water, storm run-off nor roads. Included with this proposal you will find: Two sets of 11" X 17" sign plans (Exhibit D-1) Two sets of reduced 8 '/:" X 11" sign plans (Exhibit D-2) Two Sets of full scale site plans (Exhibit E-t) Two sets of reduced site plans (Exhibit E-2) Two Copies of Land Title Survey (Exhibit ~ Your consideration of this amendment is appreciated. Sincerely, '+_ r1 r David Ehlis Sales Branch Manager John Deere Company -Minneapolis ~7 RECEIVED SEP 212005 Agenda Information Memo November 15, 2005 Eagan City Council Meeting C. OLD BUSINESS DIFFLEY MARKET PLACE -CIRCULATION & ACCESS ACTION TO BE CONSIDERED: Receive the County Plat Commission action and provide direction for further action. FACTS: • At its meeting of October 6, 2005, the City Council approved the preliminary and final planned developments for the Diffley Market Place development proposal. The development application proposed full access between the development and Diffley Road and the Council action included a condition that no connection be made between the development and Daniel Drive. • Acknowledging that the County Plat Commission would consider County Road access and internal circulation as part of its review of the plat, the Council indicated that if the access and circulation plan were not approved by the Plat Commission, the matter would be returned to the City Council to discuss alternative responses to the County. • On Oct. 31, the County Plat Commission reviewed and subsequently denied the preliminary plat and related site plan as submitted by the city based on issues associates with the internal circulation, access to County Road 30 (Diffley Rd.) and Daniel Dr. connection • The City Council has several options available to pursue a resolution for the required County's approval. • The Director of Public Works has provided a memo summarizing the issues and options for consideration by the Council ATTACHMENTS: • Staff memo with attachments, pages ~ through ~~~ • Extract of M'nutes of October 6, 2005 City Council Meeting on pages through ~~ City of Ea~au M~mu To: MAYOR & CITY COUNCIL THOMAS L. HEDGES, CITY ADMINISTRATOR From: THOMAS A. COLBERT, DIRECTOR OF PUBLIC WORKS Date: NOVEMBER 9, 2005 Subject: DIFFLEY MARKET PLACE - COUNTY PLAT COMMISSION ACTION BACKGROUND On October 6, the City Council considered an application for a Preliminary and Final Planned Development for a commercial development referred to as the Diffley Market Place, generally located south of Diffley Rd (Co. Rd. 30) and east of Lexington Ave. (Co. Rd 43). The Preliminary Planned Development was approved with many conditions, one of which required that "the driveway connection to Daniel Drive shall be eliminated and the plans resubmitted to Dakota County for review". Because the property is adjacent to a county road and will have to be platted to accommodate the proposed development, the Dakota Contiguous Plat Ordinance requires that the plat be approved by Dakota County. COUNTY PLAT COMMISSION REVIEW In accordance with the Council's directive, City staff submitted the developer's site plan as reviewed by the Council to the County Plat Commission (CPC), which met on Oct. 31, 2005. After the CPC's consideration of this site plan, they subsequently denied the plan as submitted with Council conditions (i.e. full signalized access from Diffley Rd. and no driveway connection to Daniel Dr.) The CPC stated that they may give favorable consideration to a revised site planJpreliminary plat that reduces the proposed full signalized access down to a 3/4 access (prohibits exiting left turns) and maintains the driveway connection to Daniel Dr. The City would still have to request a variance to the County's spacing guidelines for this option to be approved by the CPC. COUNTY STAFF COMMENTS Follow up conversations with the County Traffic Engineer revealed that the County would like to see the site plan's internal circulation revised to maximize a more direct and convenient access to Lexington Ave, thereby minimizing the development traffic's need to use a Daniel Dr. connection. In addition, since they also want to minimize the number of left turns off a county road into the site, they will continue to require that an internal access to Daniel Dr. remian to accommodate the local traffic (from the neighborhoods to the south/east). 99 Diffley Market Place Page 2 OPTIONS Since the CPC has acted on and subsequently denied the development's site plan (from the Oct. 6 Council meeting -full signal access and no Daniel connection), the Council has the following options available: 1. Appeal the CPC denial of the submitted preliminary plat/site plan (full signal access and no Daniel connection) to the County's Physical Development Committee (of the whole). 2. Submit a similar site plan layout, but with a 3/4 Diffley access and a Daniel Dr. connection with a variance request to the CDC for probable approval. 3. Require the developer to revise the site plan circulation maximizing access to Lexington Ave., providing a 3/4 Diffley access and no Daniel connection for reconsideration by the CDC with a request that, if denied, it be forwarded under appeal to the County's Physical Development Committee (PDC) for consideration. SCHEDULES The County Plat Commission meets on Nov. 28 and the Physical Development Committee meets on Dec. 13. ATTACHMENTS Attached are: copies of the referenced 3/4 access configuration and a full access intersection configuration. Reducing the exiting left turns reduces the vehicle conflict points by 69% (from 32 down to 10); The site plan as submitted to the County Plat Commission (and subsequently denied) is also attached; and the County Plat Commission decision from Oct. 31. I am available to review this information and discuss other possibilities as deemed appropriate by the City Council at their pleasure. Respectfully submitted, CC: Russ Matthys, City Engineer Tim Plath, Transportation Engineer /~ Z O ~- Q OC z O U Z 0 U W Cl~ W Z C!~ W U U Q J J cd a cd ~~ ~+--~ 0 -}.-~ ..._... c~ _~ ~ ~. z O Q z 0 U W U U a z O U W C/) W ~- z M cd w a ~; :~ d { 5$° F ~~~E :. 52 ~i t. ., ~. t k e S o~ $ ~-(='1 `, - ~~ ~ac~' x.\~x. a ery ~~ ~ ~ ' !~ `i ~ ___I r~ _ ~ ~. i 1 ~--' -~ r ,i `, --; 1 --. -~_) - __ J ~~ -_-.~ ~-1 I~ I J ~_) ~__ f I e - ~~ n'R~ ,G~ 0 N e 7 ~~ 7 ~ _ !~ ~ ~~ ; ~ f ~ = z ~ i ~ ~` ~ ~ : • - 5 , ~'•~ [ - i i f f ' _ . I ~ _ _ _ _ ~ 3~ 7 3 2 - '~~ i CE ) ~ t ~.~~ ~Rc-~nsc~) i ~ tt s. ~ ~" U b ~ ~ i~i~; ~ ~~ O d ii?vs1 ii ]~:rS ~ 1 ii yyy~~~ ~~ m ~•-~ F~„ ~ ~d w -', .]. ~..<iJ ]~ T~ t i ;eeE]x g is r 57~ $ ~ ~ ~.~ x f '~ w a 19 v trslt F g G 4.;;-r~.. .....!i.:._73 9 f ~ . 9-'i~ 'ii ~ ~Q ~'~ Y\ ~ ~ !I!i .f i '' ~'I _r-l r ~ ~-' -~ i_ ~ -_J ~-__ J ,_i -- -_ _- __._J /03 C O U N T Y November 1, 2005 Surveyor's Office City of Eagan Todd B. Tollefson. P~.s. Attention John Gorder County Surveyttoyyr 3739 Pilot Knob Road WestDernoServ~enCenter Eagan MN 55122-1810 14955 Galaxie Avenue Apple Valley, MN 55124 Re: DIFFLEY MARKETPLACE ECEI~iED '~ ~ ~ ~ y 200 ~aGa~ ENG~NEERiNG DEPARTMENT 952.891.7067 The Dakota County Plat Commission met on October 31, 2005, to consider the preliminary Fax 952.691.7097 plat of the above referenced plat. The plat is adjacent to CSAH 30, and is therefore subject www.co.dakota.mn.us to the Dakota Cou::ty Contiguous Plat Ordinance. This preliminary plat indicates one full access at CSAH 30 (Diffley Road) to serve the proposed commercial development, which is located between two other full access points at CSAH 43 (Lexington Avenue) and Daniel Drive. The Access Spacing Guidelines for full access off CSAH 30 is one-quarter mile (1320 feet). The current spacing between the proposed commercial access and Daniel Drive is approximately 450 feet; therefore, does not meet spacing guidelines and would require a large deviation from the spacing guidelines from the allowable guideline of right turns only access. While the plat remains unchanged from the August 8, 2005, submittal, the City indicated that their approval was based on severing the existing driveway to Daniel Drive, which is located south of Diffley. Since the first preliminary plat, Plat Commission members have met with school representatives to understand the school's traffic patterns and concerns with respect to their access points. The school is located to the north of this proposed plat. The developer has provided some traffic data to show the amount of traffic the proposal will generate. Residents along Daniel Drive have shared their thoughts/concerns regarding increased traffic on Daniel through phone discussions and emails to Plat Commission members. The Plat Commission concurs that concentrating traffic at Daniel Drive for the commercial access is not a reasonable alternative. Further significant left turns at either Daniel or the development access is problematic. The development needs to disperse traffic in a inanr~er to minimize major conflicting moves, primarily exiting left turn trips onto Diffley by better utilizing shared access driveways and the roadway system to Lexington Avenue. Based on the assessment of the operation and issues here, the Plat Commission believes it would be advantageous to allow a large variance to the current spacing guidelines by permitting the developer to build a three-quarter access at their commercial entrance/westerly school access and to keep the existing driveway to Daniel Drive for local residential access, allowing for safe movements into the commercial site while avoiding Pn~ted on recycled paper // / ~,r with 70% post-cornurrxr waste. V 7 AN EQUPL O~ORIUNITY EMRE01'ER City of Eagan Page two November 1, 2005 trips onto the County road system. The Plat Commission's recommendation to allow a three-quarter access permits all movements in and right turns out of the development with restriction to left turns out. Since the traffic study indicated a minimal amount of trips exiting this site on the west to Lexington, the development's plan -will need to be reevaluated to determine the best configuration to minimize trips on Daniel and best utilize Lexington for these trips. A variance from the City to the current spacing guidelines will be required for the three-quarter access. A permit for this development will be granted for a three-quarter access to restrict exiting left turns -this permit does not remove the County's rights and authority with regards to divided highways and median closures in the future. The Plat Commission did not approve the preliminary plat as submitted. The Plat Ordinance includes avariance/appeal procedure. The Plat Commission must first review the variance request. Variances must be in writing, received from the municipality and describe the need for the variance and the unique hardship. The applicant, designated representative, or a representative from the municipality must attend the Plat Commission meeting and present the facts or conditions upon which the application for a variance is based. In the event that the Plat Commission denies the variance or imposes conditions for plat approval, the requesting local unit of government and/or sub-divider can appeal the recommended action to the County Board Physical Development Committee of the Whole (PDC). No work shall commence in the County right of way until a permit is obtained from the County Transportation Department and no permit will be issued until the plat has been filed with the County Recorder's Office. The Plat Commission does not review or approve the actual engineering design of proposed accesses or other improvements to be made in the right of way. The Plat Commission highly recommends early contact with the Transportation Department to discuss the permitting process which reviews the design and may require construction of highway improvements, including, but not limited to, turn lanes, drainage features, limitations on intersecting street widths, allowance and size of medians, etc. Please contact Gordon McConnell regarding permitting questions at (952) 891-7115 or Todd Tollefson regarding Plat Commission or Plat Ordinance questions at (952) 891-7070. Sincerel ~~ Todd B. Tollefson Secretary, Plat Commission c: Landform ~OS Eagan City Council Meeting Minutes October 6, 2005 Page 4 Mayor Geagan asked Chief Therkelson if he has reseazched the public safety impact of different certification requirements. Chief Therkelson stated that although he had not looked into different certification requirements, the current ordinance requirements have been successful in regazding public safety and consumer protection issues. He mentioned that he is comfortable with the language of the ordinance amendment and does not anticipate problems. Councihnember Fields moved, Councihnember Tilley seconded a motion to approve an ordinance amendment to Chapter 6, Other Business Regulation and Licensing, regazding Massage Therapy Establishment and Massage Therapy Licenses. Aye: 5 Nay: 0 PRELIMINARY PLANNED DEVELOPMENT AND FINAL PLANNED DEVELOPMENT (OUTLOT A, LEXINGTON POINTE 13~ ADDITION AND OUTLOT A LEXINGTON POIlVTE 7~ ADDITION) - RELIANCE DEVELOPMENT City Administrator Hedges introduced this item regarding a Preliminary Planned Development and a Final Planned Development for a retail commercial development, consisting of a 43,175 square foot grocery store, and two 10,000 square foot multi-tenant retail buildings south of Diffiey Road and east of Lexington Avenue in the NW '/< of Section 36. City Attorney Dougherty explained the legal constraints presented by the property's current zoning in light of the Comprehensive Guide Plan. He also clarified the consequences of approval, denial, or continuance of the item. City Planner Ridley gave a staff report outlining deviations and variances as well as reasons for denial by the APC. Council asked for clarification between the differences between the zoning of Planned Development and Neighborhood Business as it relates to the proposed development. City Planner Ridley provided a comparison of the two options. Council asked for an overview of the process for rezoning to Neighborhood Business. City Attorney Dougherty stated the process and clarified that there would be little legal stance to deny the application to Neighborhood Business rezoning. Mayor Geagan asked for comments from the developer. John Trouts of Reliance Development Company, a partner in Diffiey Ventures, thanked the Council for the previous continuance. He stated that his development would provide an attractive architectural package, anover-standazd green space including an outdoor plaza, and finally a unified development plan providing continuity to the area. He also expressed interest in reducing residential and commercial traffic mix by engaging the developer, the City and Dakota County in constructing a full access entrance with traffic light at the main access point on Diffiey. He said that if the main access point on Diffiey had a traffic light, there would be no need for an access point off of Daniel Drive. He also pledged to pay for 75% of the traffic light. Mayor Geagan opened for Council discussion. Council asked Staff for their opinion on traffic options and the willingness of the County to negotiate the access points. City Engineer Matthys reviewed the traffic options and summarized the County's specifications on access points. Council directed staff to discuss the options further with the County, preferring a fully signalized main access point to be across from the elementary school on Diffiey, full access to Daniel Drive and no Daniel Drive access to the development. Council discussed landscaping options in the development, specifying desire for double-stacked evergreens and a decorative fence along property line to discourage walk-through traffic. Mayor Geagan opened for public comment. Nineteen members of the public expressed their concerns including: increased traffic, children safety, County acceptance of full-signalization proposal, store hours, acchitectuae congruity with neighboring buildings, scale of store, future improvements to Lexington and Diffiey roads, quality of Rademacher's franchise, outdoor trash and storage, number of and noise generated by trucks, emergency vehicle access to Daniel Drive, allowance of a service road, applicability of past zoning to today's needs, number of full access points, impact of a signalized intersection on the traffic capacity of Diffiey Road, property valuation after site is developed, height and brightness of lights in parking lot, height and length of berm on property line, resident recourse if County denies access proposal, precedence set for nearby undeveloped sites, size of parking spaces and their impact on development size, developer payment of traffic signal, content of retail stores, impact of a destination /D6 Eagan City Council Meeting Minutes October 6, 2005 Page 5 grocery store as opposed to a neighborhood grocery store, elevation impact during grading, and the number of conditions of approval. Council, City staff and the developer responded to a list of questions generated during the public comment period. Mayor Geagan closed the public comment period and fumed discussion back to the Council. Council thanked everyone for their participation and diligence in becoming educated about the issue. Councihnember Cazlson moved, Councihnember Tilley seconded a motion to approve a Preliminary Planned Development for a retail commercial development (Diffley Marketplace) consisting of a 43,175 square foot grocery store, two 10,000 squaze foot multi-tenant retail buildings, and two other retail buildings upon 10.94 acres located south of Diflley Road and east of Lexington Avenue, legally described as Outlot A, Lexington Pointe 13'~ Addition and Outlot A, Lexington Point 7'~ Addition, in the NW '/. of Section 26, subject to the following conditions: Aye: 5 Nay: 0 A Final Planned Development Agreement shall be executed for each Phase of the development. The following plans aze necessary for the Final Planned Development Agreement: • Final Site Plan • Final Building Elevations • Final Site Lighting Plan • Final Landscaping Plan • Final Sigaage Plan 2. The property shall be platted prior to issuance of any building permits. Outlot A, Lexington Pointe 7th Addition, a 0.15 acre parcel adjacent to Daniel Drive) shall be included in the plat combining the two existing outlots that comprise this site into a single parcel. The platting shall be completed prior to issuance of any building permits. 3. Uses permitted within the NB zoning district shall be permitted within the two Phase I retail buildings. Only three Class II restaurants, with one drive-through service shall be permitted in the Phase I retail buildings. Any additional Class II restaurants in the Phase I retail shall require a Planned Development Amendment. 4. The approved use for the Phase II development shall be one Class II restaurant with drive through service and one financial institution with drive through service. Any use in Phase II other than the uses specified will require an amendment to the Preliminary Planned Development. 5. The following Class II restaurants shall be prohibited: McDonald's, Burger King, KFC, Wendy's, Taco Bell and Arby's. 6. Phase II development will require Final Planned Development approval for each building. Each Final Planned Development application will require a Site Plan Review by the City Council. 7. Phase II development on the east end of the site shall be subject to the minimum setback requirements in the NB zoning district, except that any proposed buildings in Phase II shall be set back a minimum of 50 feet from the south property line, and pazking may be set back 15 feet from Dit~ley Raad. 8. With future subdivision, cross-easements will be needed for ingress/egress and parking in a form acceptable to the City Attorney. 9. The trash enclosures shall meet the 30-foot setback from the south property line. 10. The development shall provide a service drive dedicated to through movements and without direct parking stalls, from the existing access onto Diffley Road to the Walgreen's property. 11. This development shall dedicate 10' drainage and utility easements centered over all common lot lines and adjacent to private property or public right-of--way. 12. This development shall dedicate all public right-of-way and temporary slope easements for ultimate development of adjacent roadways as required by the appropriate jurisdictional agency. 13. This development shall dedicate adequate drainage and ponding easements to incorporate the required high water elevation necessitated by City storm water storage volume requirements and area acceptable to the City Engineer. 14. All public streets and utilities necessary to provide service to this development shall be designed by a registered professional engineer in accordance with City Codes and engineering standards, guidelines and policies. /o ~ Eagan City Council Meeting Minutes October 6, 2005 Page 6 15. To ensure that Walgreen's will retain access to Diffiey Road with future subdivision of the subject site, the developer shall provide a copy of the access easement affording Walgreen's access to Diffiey Road for review and approval by the City Attorney prior to release of the plat and Planned Development agreements for recording. 16. A detailed grading, drainage, erosion, and sediment control plan must be prepared in accordance with current City standards prior to final plat approval. 17. A detailed landscape plan shall be submitted on the proposed grading plan. The financial guarantee shall be provided in the form of a letter of credit in an amount equivalent to the cost of plant materials plus installation, as calculated by the City, and shall cover two full calendaz years subsequent to the completion of the landscaping as provided in the approved landscape plan and shall be released only upon inspection and written notice of conformance by the City. 18. City water quality requirements shall be met primarily through construction of an on-site pond on the east end of the pazcel. This pond shall have a minimum treatment volume of 1.5 acre-feet and a maximum depth of 10 feet. To account for the I.04 acres of the site that drain off site to city streets without stormwater treatment, cash in lieu of ponding shall be paid at the rates in effect at the time of payment. 19. T'he applicant shall submit a revised Tree Mitigation Plan that shows the mitigation plantings separate from the Landscape Plan. This revised plan shall be submitted to City staff for review and approval by the City Forester prior to inclusion in the Preliminary PD Agreement. 20. The proposed Grading Plan must be revised to incorporate berming along Diffiey Road. 21. The developer shall review the Landscape Plan and revise it as necessary to address the following issues: a. Selection of plants and use of taller narrower evergreen materials along the south boundary for solid screening and appropriate size and tolerance for growing conditions. b. Fotential conflicts between parking lot island trees and site lighting. c. Designation of mitigation plantings in addition to landscape plantings. d. Added shrub and/or perennial beds along Diffiey Road. 22. The site lighting plan shall be reviewed and calculations clarified or lighting modified to better achieve the IESNA recommended standazds and reduce light spillover onto adjacent residential property. 23. Additional shielding or adjustments in the proposed lighting shall be made to achieve the 1.0 foot- candle or less at all points along the development where it abuts residential property. 24. The proposed grocery building elevations shall be modified to utilize brick as the primary exterior material rather than EIFS. 25. There shall be no signage on the cart corrals, and all shopping carts shall be retrieved from the corrals and stored within the building overnight. 26. Awnings on the two retail buildings shall be a canvas or Sunbrella material and shall not be illuminated and shall contain no signage. 27. Hours of operation for the grocery store and other commercial businesses shall be restricted to between 6:00 a.m. and 12:00 a.m. (midnight). 28. The driveway connection to Daniel Drive shall be eliminated and the plans resubmitted to Dakota County for review. 29. Grading operations shall occur only between 9:30 am and 3:00 pm. 30. The developer shall provide flagmen during grading operations. 31. Construction operations shall cease at 9:00 pm. Councihnember Cazlson moved, Councihnember Tilley seconded a motion to approve a Final Planned Development for Phase I of a retail commercial development (Diffiey Marketplace) consisting of a 42,600 sq. ft. grocery store and two 10,000 sq. ft. multi-tenant retail buildings, upon 10.94 acres located south of Diffiey Road and east of Lexington Avenue, legally described as Outlot A, Lexington Pointe 13's Addition and Outlot A, Lexington Pointe 7'~ Addition, in the NW '/, of Section 26, subject to the following conditions: Aye: 5 Nay: 0 A Final Planned Development Agreement shall be executed for each Phase of the development. The following plans are necessary for the Final Planned Development Agreement: • Final Site Plan • Final Building Elevations D Eagan City Council Meeting Minutes October 6, 2005 Page 7 • Final Site Lighting Plan • Final Landscaping Plan • Final Signage Plan 2. The property shall be platted prior to issuance of any building permits. Outlot A, Lexington Pointe 7t° Addition, a 0.15 acre pazcel adjacent to Daniel Drive) shall be included in the plat combining the two existing outlots that comprise this site into a single parcel. The platting shall be completed prior to issuance of any building penauts. 3. The development shall be subject to the minimum setback requirements in the NB caning district with the following exceptions: The two 10,000 sq. ft. retail buildings shall be set back a minimum of 40 feet from the south property line, trash enclosures shall be set back a minimum of 30 feet; parking may be set back a minimum of 15 feet from Diffiey Road. Building Setbacks: • Minimum of 50' setback front yazd setback (from Diffiey Road) • Minimum of 50' rear yard setback (south lot line) for grocery building • Minimum of 40' rear yard setback (south lot line) for two multi-tenant retail buildings (30' minimum rear yazd setback for trash enclosures) • Minimum 10' side yard setback (west lot line) Parking/pavement setback • Minimum of 15 feet from north property line abutting Diffiey Road • Minimum of 20' from south property line • 25' set back shall be provided of where possible as shown on the approved Site Plan • 5' Minimum side yard setback (west lot line) 4. Uses permitted within the NB zoning district shall be permitted within the two Phase I retail buildings. 5. Only three Class II restaurants, with one drive-through service shall be permitted in the retail buildings. Any additional Class II restaurants in the Phase I retail shall require a Planned Development Amendment. 6. The following Class II restaurants shall be prohibited: McDonald's, Burger King, KFC, Wendy's, Taco Bell and Arby's. 7. The trash enclosures shall meet a minimum 30-foot setback from the south property line. 8. The development shall provide a service drive dedicated to through movements and without direct parking stalls, from the existing access onto Diffiey Road to tbe Walgreen's property. 9. This development shall dedicate 10' drainage and utility easements centered over all common lot lines and adjacent to private property or public right-of--way. 10. This development shall dedicate all public right-of-way and temporary slope easements for ultimate development of adjacent roadways as required by the appropriate jurisdictional agency. 11. This development shall dedicate adequate drainage and ponding easements to incorporate the required high water elevation necessitated by City storm water storage volume requirements and area acceptable to the City Engineer. 12. All public streets and utilities necessary to provide service to this development shall be designed by a registered professional engineer in accordance with City Codes and engineering standazds, guidelines and policies. 13. To ensure that Walgreen's will retain access to Diffiey Road with future subdivision of the subject site, the developer shall provide a copy of the access easement affording Walgreen's access to Diffiey Road for review and approval by the City Attorney prior to release of the plat and Planned Development agreements for recording. 14. A detailed grading, drainage, erosion, and sediment control plan must be prepared in accordance with current City standards prior to final plat approval. 15. A detailed landscape plan shall be submitted on the proposed grading plan. The financial guarantee shall be provided in the form of a letter of credit in an amount equivalent to the cost of plant materials plus installation, as calculated by the City, and shall cover two full calendar years subsequent to the completion of the landscaping as provided in the approved landscape plan and shall be released only upon inspection and written notice of conformance by the City. 16. City water quality requirements shall be met primarily through construction of an on-site pond on the east end of the parcel. This pond shall have a minimum treatment volume of 1.5 acre-feet and a maximum depth /0 9 Eagan City Council Meeting Minutes October 6, 2005 Page 8 of 10 feet. To account for the 1.04 acres of the site that drain off site to city streets without stormwater treatment, cash in lieu of ponding shall be paid at the rates in effect at the time of payment. 17. The applicant shall submit a revised Tree Mitigation Plan that shows the mitigation plantings separate from the Landscape Plan. This revised plan shall be submitted to City staff for review and approval by the City Forester prior to inclusion in the Preliminary PD Agreement. 18. The proposed Grading Plan must be revised to incorporate berming along Diflley Road. 19. The developer shall review the Landscape Plan and revise it as necessary to address the following issues: a. Selection of plants and use of taller narrower evergreen materials along the south boundary for solid screening and appropriate size and tolerance for growing conditions. b. Potential conflicts between parking lot island trees and site lighting. C. Designation of mitigation plantings in addition to landscape plantings. d. Added shrub and/or perennial beds along Diflley Road. 20. The site lighting plan shall be reviewed and calculations clarified or lighting modified to better achieve the IESNA recommended standards for light levels and uniformity necessary for security and safety, and to reduce light spillover onto adjacent residential property. 21. Additional shielding or adjustments in the proposed lighting shall be made to achieve the 1.0 footcandle or less at all points along the development where it abuts residential property. 22. The proposed grocery building elevations shall be modified to utilize brick as the primary exterior material rather than EIFS. 23. There shall be no signage on the cart corrals, and all shopping carts shall be retrieved from the corrals and stored within the building overnight. 24. Awnings on the two retail buildings shall be a canvas or Sunbrella material and shall not be illuminated and shall contain no signage. 25. Hours of operation for the grocery store and other commercial businesses shall be restricted to between 6:00 a.m. and 12:00 a.m.(midnight). 26. Pazking lot lighting shall be dimmed at night to a minimum agreeable with Eagan PD. 27. Storage of any kind outside of the westerly building (Rademacher's) is prolu'bited. 28. Replacement of all diseased or dying landscaping is required for the life of the project. 29. The developer shall install a decorative fence along the southerly property line. 30. The developer shall dedicate 75% of the cost of the future semaphore ($187,500). 31. Grading operations shall occur only between 9:30 am and 3:00 pm. 32. The developer shall provide flagmen during grading operations. 33. Construction operations shall cease at 9:00 pm. CONDITIONAL USE PERMIT - RAMONA RODRIGUEZ City Administrator Hedges introduced this item regarding a Conditional Use Permit to exceed the 25% impervious surface maximum in a Shoreland Overlay District for a four season porch addition on property located at 1325 Cazlson Lake Lane. City Planner Ridley gave a staffreport. Councihnember Maguire moved, Councihnember Tilley seconded a motion to approve a Conditional Use Permit to exceed the 25% impervious surface maximum in a Shoreland Overlay District for a four season porch addition on property located at 1325 Carlson Lake Lane in the NW '/. of Section 27; subject to the following conditions: Aye: 5 Nay: 0 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council. 2. The impervious surface can not exceed 29%. 3. A landscape management plan and landscape plan shall be developed and implemented in consultation with the Soil and Water Conservation District and the City of Eagan prior to issuance of a building permit. //v Agenda Information Memo November 15, 2005, Eagan City Council Meeting A. CONSIDER APPROVAL OF SETTLEMENT AGREEMENT WENSMANN REALTY. INC AND RAHN FAMII.Y LLP VS. EAGAN ACTION TO BE CONSIDERED: To approve or deny a settlement agreement in the matter of Weissmann Realty and Rahn Family LLP v. City of Eagan. FACTS: - In response to an action by the City of Eagan to deny a Comprehensive Guide Plan Amendment to change the designation of the Carriage Hills Golf Course from P-Parks and Recreational Open Space to LD-Low Density Residential, Weissmann Realty and Rahn Family LLP (Plaintiffs) filed the above entitled lawsuit. - In the course of that lawsuit, the Plaintiffs have made a settlement proposal for consideration by the City Council. That proposal is in order for the City Council to consider formally at this time. ATTACHMENTS: None - A settlement agreement will be distributed by the City Attorney at the City Council meeting. /~/ Agenda Information Memo November 15, 2005 Eagan City Council Meeting VIII. LEGISLATIVE/INTERGOVERNMENTAL AFFAIRS UPDATE ACTIONS TO BE CONSIDERED: No formal action is needed. This item is included should the City Council have any feedback they would like shared with either the Association of Metropolitan Municipalities (AMM) or the League of Minnesota Cities (LMC) with regard to their draft Legislative policies. FACTS: - Each year, the Association of Metropolitan Municipalities (AMM) and the League of Minnesota Cities (LMC) publish their positions on public policy issues they anticipate being raised in the coming Legislative session. - Both the AMM draft Legislative policies and a summary of the LMC draft Legislative policies were distributed to the City Council in the October 28, 2005 Informative memo. - The draft policies for both organizations were developed by standing committees made up of local government officials. - If any member of the Council would like to review the draft policies, please refer to the October 28 Informative memo, contact the City Administrator's office, or visit www.lmnc.or~ . - The LMC Board of Directors is accepting input from its general membership regarding the draft public policies until January 18, 2005. The Board will finalize the policies at their meeting on January 19, 2005. - The AMM will be accepting comments from its memberships until November 10, 2005, at which time the membership will be voting on the policies. - This agenda item had been included should the City Council have any feedback they would like shared with either the AMM or League with regard to the draft public policy positions. l l~ AGENDA CITY OF EAGAN REGULAR MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY EAGAN MiJNICIPAL CENTER NOVEMBER 15, 2005 A. CALL TO ORDER B. ADOPT AGENDA ` (~ C. APPROVE 1VIIl~iUTES P D. OLD BUSINESS E. NEW BUSINESS `~' ~ ? 1. CEDAR GROVE REDEVELOPMENT DISTRICT -Receive Draft ~v Development Agreement for Schafer Richardson to Act as Master Developer of the core Redevelopment Area and Schedule a Public Hearing for the Consideration of Agreement on December 20, 2005. F. OTHER BUSYNESS G. ADJOURNMENT //3 Agenda Information Memo Eagan Economic Development Authority Meeting November 15, 2005 NOTICE OF CONCURRENT ACTIONS The Council acting as the Board of Commissioners of the Economic Development Authority ("EDA") may discuss and act on the agenda items for the EDA in conjunction with its actions as a Council. A. CALL TO ORDER ACTION TO BE CONSIDERED: To convene a meeting of the Economic Development Authority to run concurrent with the City Council meeting. B. ADOPT AGENDA ACTION TO BE CONSIDERED: To adopt the agenda as presented or modified. C. APPROVE NIINUTES ACTION TO BE CONSIDERED: To approve the minutes of the November 1, 2005 EDA meeting as presented or modified. ATTACHMENTS: • Minutes of the November 1, 2005 EDA meeting on pages .S"~~f~ . 1 ~`f MINUTES OF A MEETING OF THE EAGAN ECONOMIC DEVELOPMENT AUTHORITY Eagan, Minnesota November 1, 2005 A meeting of the Eagan Economic Development Authority was held on Tuesday, November 1, 2005 at 8:25 at the Eagan Municipal Center. Present were President Geagan, Commissioner Fields, Commissioner Tilley, Commissioner Maguire, and Commissioner Carlson. Also present were Executive Director Hedges, Community Development Director Hohenstein, City Planner Ridley, Public Works Director Colbert, and City Attorney Dougherty. ADOPT AGENDA Community Development Director Hohenstein noted that an item regarding the acquisition of the Eagan Eye Clinic building will be added under New Business. Commissioner Tilley moved, Commissioner Maguire seconded a motion to approve the agenda as amended. Aye: 5 Nay:O APPROVE A~IINUTES Commissioner Fields moved, Commissioner Tilley seconded a motion to adopt a resolution approving the minutes of the October 18, 2005 EDA meeting as presented. Aye: 5 Nay:O NEW BUSINESS NORTHEAST EAGAN REDEVELOPMENT DISTRICT PUBLIC HEARING TO CONSIDER A DEVELOPMENT AGREEMENT WITH MCGOUGH COMPANIES AND THE PUBLIC PURPOSE OF THE ACQUISITION AND ASSEMBLY OF PROPERTY LOCATED ON BLUE GENTIAN ROAD AND BLUE GENTIAN CIRCLE Community Development Director Hohenstein discussed the Development Agreement with McGough Companies for the acquisition and assembly of property located on Blue Gentian Road and Blue Gentian Circle. President Geagan opened the public hearing. Four residents spoke regarding property values and differences in offers being made for the property. Greg Miller, McGough Companies discussed the valuation process. City Attorney Dougherty and Community Development Director Hohenstein discussed the process for value appraisals and eminent domain. The EDA members indicated that they were not prepared to find at this time that private efforts to acquire the property had been exhausted and indicated that the developer would need to make additional efforts to acquire the property, including //s offering mediation or other alternative dispute resolution efforts, before the EDA would conclude that such efforts had been exhausted. Commissioner Cazlson moved, Commissioner Maguire seconded a motion to close the public hearing to direct prepazation of findings of fact to approve a development agreement with McGough Companies including findings regazding the public purpose of acquisition of property located on Blue Gentian Road and Blue Gentian Circle, such findings to be considered at a future City Council -EDA meeting. Aye: 5 Nay: 0 OTHER BUSINESS RECONSIDERATION OF EDA ACTION REGARDING ACQUISITION OF EAGAN EYE CLII~IIC BUILDING Community Development Director Hohenstein stated that at it's meeting of October 18, 2005 the EDA and City Council authorized staff to enter into negotiations with the owners of the Eagan Eye Clinic property at 3908 Cedarvale Drive, with the condition that the City would need to buy all condo units in a building at the same time. The owners of the 3908 property have requested this condition be removed to expedite the sale of their property and allow them to make relocation plans as promptly as possible. Commissioner Cazlson moved, Commissioner Tilley seconded a motion to reauthorize staff negotiations for the acquisition of the property at 3908 Cedarvale Drive excluding the condition regarding the need to acquire entire buildings. Aye: 5 Nay: 0 ADJOURNMENT Commissioner Fields moved, Commissioner Tilley seconded a motion to adjourn the meeting at 8:50 p.m. Aye: 5 Nay: 0 Date Executive Director If you need these minutes in an alternative form such as large print, Braille, audio tape, etc, please contact the City of Eagan, 3830 Pilot Knob Road, Eagan, MN 55122, 651-675-5000. The City of Eagan is committed to the policy that all persons have equal access to its programs, services, activities, facilities and employment without regard to race, color, creed, religion, national origin, sex, disability, age, sexual orientation, marital status or status with regazd to public assistance.. //6 Agenda Memo Eagan Economic Development Authority Meeting November 15, 2005 1. NORTHEAST EAGAN REDEVELOPMENT DISTRICT -SCHEDULE PUBLIC HEARING TO CONSIDER A DEVELOPMENT AGREEMENT WITH MCGOUGH COMPANIES AND THE PUBLIC PURPOSE OF THE ACQUISITION AND ASSEMBLY OF PROPERTY LOCATED ON BLUE GENTIAN ROAD AND BLUE GENTIAN CIRCLE ACTION TO BE CONSIDERED: To receive the Development Agreement and schedule Public Hearing on December 20, 2005 to consider the proposed request for the use of eminent domain and approval of the Development Agreement with Schafer Richardson for property located in the Core Area of the Cedaz Grove Redevelopment District. FACTS: • The City has taken steps to bring about the redevelopment of the Cedar Grove Redevelopment Area, including public improvements, environmental reviews, comprehensive plan and zoning modifications and the initiation of redevelopment activity in a portion of the district consistent with the City's plans for the area. • In 2004, the City issued an RFP for a master developer for the core azea of the Cedar Grove Redevelopment Area. As an outcome of that process, on February 1, 2005, the Council and EDA acted to: 1. Designate Schafer Richardson as Master Developer of the Cedar Grove Redevelopment District and lead in the partnership with Ryland Homes. 2. Approve the refined conceptual redevelopment plan and development program, including general land uses, layout and building types. 3. Confirm the role of the Council Finance Committee as liaison to staff for negotiation of development agreement. 4. Authorize staff to proceed with negotiation of the development agreement. Since that time, the City's Redevelopment Group -consisting of staff, the City Attorney and representatives of Ehlers and Associates -have worked with the Schafer Richazdson to review the developer's proforma for the project and negotiate a development agreement that would implement the City's priorities for the azea as outlined in the original RFP and consider the economics associated with a redevelopment of this type. // 7 • At its meeting of October 18, 2005, the EDA and City Council approved an agreement in concept and directed staff and the developer to finalize a draft development agreement to be presented to begin the public review and public hearing process. The agreement has been completed in draft and is being presented to the Council this evening. • In addition to the Public Hearing being proposed for December 20, it is also anticipated that the development agreement and revised concept plan will be before the City Council at its workshop on December 12. If the Council establishes this schedule, staff and the developer will also coordinate a business and neighborhood open house between November 15 and December 20 to familiarize interested parties with the proposed agreement and redevelopment plan. ATTACHMENTS: • Redevelopment District map on page 1 / 9 • Outline of October 18, 2005 Concept Agreement on pages Q " ~~ • Proposed Revised Conce t Plan on page ~a„3 • Resolutions on pages ~~~ • Development Agreement enclosed without page number. //~' • o ~ ~ Qo dQ~ dd. o ~ o, d ~ ~ aoa ~ ~ ~ d Pac9 o ~ ca °o a o o ~~ o a o m O ~l a.°4 Q ~ ~'0~03 ~ ~p o ~ ~ ~ ~ l1 ~~ ° ° °o ~ .0 6 Q~ °~ ~ ~8 q a ~'~ o~ a ~~ ~aa o °°O ~ °o ~ °~ ~ a o~ 0 ~ e O 4° • O~do47 \/ `~ ~ (\~\o ~ 4f ~ LI ~ IJ O O 4 d O o ~~ Q Oo ~ 4'O~ ~~• ~O d~ °Qo ~ d ` °p 00 ~ pooca o~ 0 0 o, 0 4?0~~ o~ o ~ ~ O ~p a o ° o P bfl ^o~o a`6`l~ o 09 ~ o b©p~p a 00000 ~ p ~ d o°a ~ooo o ~ d QO o~ Owe o Q ~°~°o~ ~~ o o°.~v° o~W oo~o0 000 P ~ ~ o ~ •a oo ~ti ~W a, o oDo• ~O~ ~ a a~ Q 2~~ `>~ ~ o D n e ~p d 0 Z o ~ ~ 4 <° o D O o~d- o p° p 0 d C ~~ W 6 a o ~ .v a oN W °~u oa p o ao a° ~ 00 0~ ~ O d~ aQ o~ ~ ~ Q ~ fa . ~ ~ ~ Q D ~ .Q ° 021 SIO~IN 0 Q //9 w , a Q q~ l hV~~~? ~a~ CITY OF EAGAN CEDAR GROVE REDEVELOPMENT CORE AREA DEVELOPMENT CONTRACT COUNCIL DIRECTION/APPROVAL IN CONCEPT Tuesday, October 18, 2005 The deal points outlined below were presented to the City Council and EDA at its meeting of October 18, 2005. Based on the outcome of the parties' negotiations on the afternoon of the 18`x, the City Council approved the agreement in concept with the following clarifications resolving the deal points remaining after that meeting: • Agreement to a $500,000 developer fee to be paid '/2 at the end of Phase 3 and the balance at the end of Phase 5 • No commissions to be paid for sales of property by Schafer Richazdson employees. • Requirement that the development not only conform to the CGD architectural and finish standards, but also to the requirement that residential units must be attached and in buildings of four or more residential units. 1. Developer Return. • The City's development consultant indicates that developer return on redevelopment projects typically ranges between 10% and 15%. Under the terms outlined in the RFP, the City was willing to consider a 15% return, based on the expectation that developer would acquire properties and project would internalize certain redevelopment costs. At the direction of the City Council, the City has taken on the responsibility for acquiring properties and holding them until redevelopment occurs. • Through negotiations, the developer has asked that the City take on costs for environmental review and remediation, underwriting the costs of affordable housing, offsite transportation improvements and certain assessments. In consideration of the changes in the structure of the deal from the original RFP, the City has required and the developer has agreed to a 12% return. • The 12% return applies only to actual costs assumed by the developer and does not apply to project costs paid directly by the City. Since the mall itself is owned by a partnership consisting of the developer and other parties, the base price of the mall will be included in the costs to which the return applies. • In addition to the 12% return, the developer has proposed a $500,000 developer fee to offset certain costs. At the last Finance Committee meeting it was concluded that the fee would be considered, if it is paid at the end of the project. The City Council agreed to the payment of the developer fee to be paid '/a at the end of Phase 3 and the balance at the end of Phase 5. • An open issue remains regarding applying the return rate to commissions paid to Schafer Richardson for sales to third parties that do not make use of a broker. The Finance Committee recommended against this. The City Council determined that no /ao Commissions are to be paid to Schafer Richardson for sales to third parties that do not make use of a broker. 2. Mall Price • The developer's calculation of the mall price, based on the income approach to valuation, puts the current proposed value at $5.75 million as compared to the $2,975,000.00 amount the developer paid for the mall in 2002. The current value will need to be supported by a professional appraisal. • In keeping with the approach that the substantial benefits accrue to the developer for completing the entire project, the agreement proposes to pay the difference between the current basis cost of the mall ($3.4 million based on purchase price plus improvements) and the current value in two parts -half after completion of Phase 3 and the balance after the completion of Phase 5. 3. Cost of City Property • In order to make the TIF cash flow balance, the agreement calls for the City to sell the properties it had acquired as of March, 2005 to the developer for a dollaz. The developer will pay the City the actual cost of acquisition for properties acquired after that date. 4. Assessments. • Assessments for Project 800R will be paid upon closing with each of the properties to be acquired, including the mall. The developer will assume the costs of public improvements associated with new development within the redevelopment area. The City will absorb the costs of offsite improvements identified in the traffic studies associated with project, if and when such improvements aze needed. • The City will also pursue third party funding for the construction of a transit station/pazking ramp in the eastern, gateway area of the development. The ramp will serve transit users during the day and food and beverage and entertainment business users in the evening. The eastern transit station is intended to provide transit service to the azea until such time as specific plans and implementation funding are available to construct the BRT station on the west end of the project. 5. Affordable Housing. • The developer has agreed to incorporate a mixture of affordable housing types totaling 20% of the units in the overall project. These will consist of scattered site owner occupied units priced at or below the value for affordability identified by the Metropolitan Council, scattered site units sold to persons who qualify for the CDA's First Time Home Buyer Program and/or Down Payment Assistance Programs, a mixed income rental apartment project and a CDA constructed work-force rental rowhome project. • The costs of the first two types of products are expected to be mazket rate and require no specific financing assistance. The City will work with the CDA and other funding agencies to provide the necessary write-downs to assist with the mixed income apartment and work-force rowhome project. ~a~ 6. Environmental issues. • Environmental remediation is one of the costs that typically prevent the private sector from undertaking redevelopment activities. The City has agreed (but is not obligated) to cover the costs of investigation and remediation. 7. Phase 5 -Hotel. • From the outcome of the Cedaz-13 Task Force through the RFP process until now, the City has had an expressed expectation that a hotel would be built at the west end of the project to create another node of retail activity and a vertical building (6 or more stories) that could be seen from Cedar Avenue to provide a visual connection between the development and the traveling public. • The developer has yet to identify a development partner that would insure the construction of the hotel by the time the project would be completed. He has requested consideration of alternative uses. The Finance Committee indicated that the hotel remains the first choice and that it should remain an expectation in the development agreement. The Committee indicated that the City should be open to alternative uses if the hotel is not feasible at that time, provided that the alternative use(s) is identified as part of the agreement, that such use(s) would be 6 or more stories to provide the visual connection to Cedaz Avenue and that it not be entirely residential. The developer has proposed a structure in which a hotel would be the first option, an office building second (preliminary traffic analysis indicates that an office use would exceed the capacity of the traffic improvements in the area) and a mixed use retail-condominium building. 8. Allocation of Inflation • The City will retain any inflation in TIF return from the project to cover unanticipated costs and to provide assurance of certain improvements if grant funding cannot be Secured. 9. Pazk Dedication and Public Open Space • The developer will provide pazkland and improvements or pay cash dedication as pazt of the APrC review of the development applications for each phase. • The developer has also agreed to the suggestion that public places be defined within the primary mixed use azea and along the lineaz pedestrian ways from east to west through the development. The, concept plan will be updated to reflect those additions. The costs of long term maintenance of such improvements are to be borne by the benefiting properties. 10. Conformance with CGD Zoning Regulations -Attached Housing • The development will conform to the CGD requirements that only permit housing if it is attached and in buildings of four residential units or more. The single family detached product should be removed from the concept plan. /~ ,; ~,/f ~ ~~ ';~ s~ , ,~~ ~=, - , =E ;,; , ~ , =~" ,~ '' { ` `~ ~ • Y `i, `y~ s .. ~t ~ _ -~ _. ~1 ! .~-~ ~ If ~'I 1 I~ ~' ~f1 x= r ~ ~; ~. ~~ t- r - - L,_~ ~' ) t _~ y t __ ~ IO s i nrp :~ ti- L. ,~ ? i~ ^a r \. ~ I I .. ..- ,~ , \. ,,i ~~ ~ 3~~ CITY OF EAGAN RESOLUTION TO SCHEDULE PUBLIC HEARING TO CONSIDER A DEVELOPMENT AGREEMENT WITH SCRAPER RICHARDSON AND THE PUBLIC PURPOSE OF THE ACQUISITION AND ASSEMBLY OF PROPERTY LOCATED IN THE CORE AREA OF THE CEDAR GROVE REDEVELOPMENT DISTRICT BE IT RESOLVED by the Eagan City Council to receive the Development Agreement and schedule Public Hearing on December 20, 2005 to consider the proposed request for the use of eminent domain and approval of the Development Agreement with Schafer Richardson for property located in the Core Area of the Cedaz Grove Redevelopment District. Motion by: Second by: Those in Favor: Those Against: CERTIFICATION I, Maria Petersen, City Clerk of the City of Eagan, Dakota County, Minnesota., do hereby certify that the foregoing resolution was duly passed and adopted by the City Council in a regular meeting thereof assembled this 15~' day of November, 2005. Maria Petersen, City Clerk ~a v EAGAN ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION TO SCHEDULE PUBLIC HEARING TO CONSIDER A DEVELOPMENT AGREEMENT WITH SCRAPER RICHARDSON AND THE PUBLIC PURPOSE OF THE ACQUISITION AND ASSEMBLY OF PROPERTY LOCATED IN THE CORE AREA OF THE CEDAR GROVE REDEVELOPMENT DISTRICT BE IT RESOLVED by the Board of Commissioners of the Eagan Economic Development Authority receive the Development Agreement and schedule Public Hearing on December 20, 2005 to consider the proposed request for the use of eminent domain and approval of the Development Agreement with Schafer Richardson for property located in the Core Area of the Cedar Crrove Redevelopment District. Motion by: Second by: Those in Favor: Those Against: CERTIFICATION I, Jon Hohenstein, Secretary/Deputy Executive Director of the Economic Development Authority of the City of Eagan, Dakota County, Minnesota, do hereby certify that the foregoing resolution was duly passed and adopted by the Authority in a regular meeting thereof assembled this 15`~ day of November, 2005. Jon Hohenstein, Secretary/Deputy Executive Director /a s Agenda Information Memo Eagan Economic Development Authority Meeting November 15, 2005 F. OTHER BUSINESS There is no other business to come before the EDA at this time. G. ADJOURNMENT ACTION TO BE CONSIDERED: To adjourn the Economic Development Authority meeting. gad ~...,. Draft: 11/10/OS DEVELOPMENT AGREEMENT Dated , 2005 Relating to TAX INCREMENT FINANCING DISTRICT NO. 1 Between EAGAN ECONOMIC DEVELOPMENT AUTHORITY CITY OF EAGAN and CEDAR GROVE PROPERTIES, INC. This Instrument Drafted by: Faegre & Benson LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, Minnesota 55402 3901 Telephone: (612) 766-7000 DEVELOPMENT AGREEMENT THIS AGREEMENT, made and entered into as of this day of , 2005, by and between the EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal corporation (the "EDA"), the CITY OF EAGAN, a Minnesota municipal corporation (the "City"), and CEDAR GROVE PROPERTIES, INC., a Minnesota corporation (the "Master Developer"): WITNESSETH: WHEREAS, the EDA has created and established a Tax Increment Financing District referred to as Tax Increment Financing District No. 1 (the "TIF District") in connection with the Cedar Grove Redevelopment Project ,Area (the "Redevelopment Project Area") and pursuant to the authority granted by Minnesota Statutes, Sections 469.090 to 469.1081 and 469.001 to 469.047 and Sections 469.174 through 469.179 (collectively, the "Acts"); and WHEREAS, pursuant to the Acts, the EDA has adopted and the City has approved a Redevelopment Plan (the "Redevelopment Plan") and a tax increment financing plan (the "TIF Plan") to finance a portion of the public redevelopment costs of the Redevelopment Project Area; and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and the TIF Plan, the EDA has determined to provide substantial aid and assistance through the financing of certain land acquisition, relocation, demolition, soil correction, site improvements and public improvement costs in the Redevelopment Project Area; and WHEREAS, the Master Developer proposes to develop or cause other Developers to develop a project currently anticipated to include a number of phases (each a "Phase" as defined herein) resulting in a mix of housing, retail and other commercial facilities within the Redevelopment Project Area and the TIF District which the EDA has determined will promote and carry out the Redevelopment Plan and TIF Plan; and WHEREAS, the parcels of property involved in each Phase, the Minimum Improvements to be constructed for that Phase and certain other matters will be set forth in a Supplement to this Development Agreement to be executed by the Developer and EDA prior to the commencement of such Phase; and WHEREAS, the Master Developer will agree to purchase the EDA Parcels and those of the Other Parcels which the EDA acquires hereunder substantially in accordance with the form of Purchase Agreement attached as Exhibit I for use in connection with the Improvements; and WHEREAS, the EDA has the right to repurchase the Acquired EDA Parcels and those of the Other Parcels which the EDA acquires and conveys to the Master Developer in the circumstances described in the Repurchase Agreement attached as Exhibit B to the Purchase Agreement; and WHEREAS, this Agreement has been approved by the governing bodies of the EDA and the City following a public hearing duly called and held; NOW, THEREFORE, in consideration of the mutual covenants and obligations of the EDA, the City and the Developer, the parties hereby represent, covenant and agree, as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1 Definitions. In this Agreement, the following terms have the following respective meanings unless the context hereof clearly requires otherwise: (a) Acquired EDA Parcels. The parcels of property owned by the EDA as of March 1, 2005 which are described in Exhibit J hereto. (b) Adjusted Eligible Costs. Eligible Costs paid or reimbursed by the Master Developer, less, until the Holdback Termination Date, the amount of the Markup. (c) Affordable Housing. Housing for households with the chazacteristics described in Section 3.13. (d) Assumed Mazket Values. The market values of the categories of Improvements expected to be constructed as set forth in Exhibit H hereto and a Phase Supplement. (e) Base Costs. Total Development Costs less the Mazkup. (f) Certificate of Completion. The certificate of completion to be executed and delivered pursuant to Section 3.4, in the form of Exhibit F hereto. (g) Cam. The City of Eagan, Minnesota. (h) Community Development Agency Parcels. The parcels to be transferred to the Dakota County Community Development Agency pursuant to Section 3.5 hereof. (i) Consolidated TIF Note. The TIF Note described in Exhibit G-2 which is to be issued in exchange for all previously issued TIF Notes upon completion of the Minimum Improvements. 2 (j) Design Standazds. The azchitectural and design standards heretofore established by ordinance for the redevelopment Project Area, currently City Code Section 11.60, Subd. 21, Cedar Grove District Building and Architectural Provisions. (k) Developer. With respect to any parcel of the Property, until such time as the Master Developer makes an assignment of the Development Rights thereto pursuant to Section 2.4 hereof, the Master Developer, and after the Master Developer makes such assignment, such assignee. (1) Development. The Property and the Minimum Improvements to be constructed thereon according to the Development Plans approved by the EDA and the City. (m) Development Fee. The additional compensation provided to the Developer hereunder, aggregating $500,000 payable as provided herein. (n) Development Plans. Initially, the Development Concept and Schedule attached as Exhibit B, as supplemented by plans, drawings and related documents describing details of the Improvements submitted from time to time by the Developer and approved by the EDA and the City. (o) Development Rights. The rights of a Developer in and to the applicable parcel, including the rights under this Agreement. (p) Development Ri is Assignee. An assignee of Development Rights under Section 2.4 of this Agreement. (q) Development Concept and Schedule. The Master Developer's concept plan and general schedule for the completion of the then anticipated phases, which Development Concept and Schedule is attached as Exhibit B and may be revised from time to time and attached to any Supplement. (r) EDA. The Economic Development Authority of the City of Eagan, Minnesota. (s) Eligible Costs. The costs which aze eligible to be paid or reimbursed with tax increment under Minnesota Statutes, Sections 469.174 through 469.179, as amended, paid or reimbursed by the Developer for acquisition of the Property in arm's length transactions or otherwise at fair mazket value, including relocation, demolition, site improvements, environmental remediation and soil correction, but excluding any common area used as a public park within the meaning of Section 469.176, Subd. 41 and any improvements excluded under Section 469.176, Subd. 4g. (t) Gross Revenues. The (i) revenues received by the Master Developer from the sale or other disposition of Development Rights, Property and Improvements, plus (ii) the principal amount of TIF Notes issued to the Master Developer or proceeds of Tax Increment Bonds issued in exchange therefor, determined as provided by Sections 5.1 and 5.3 hereof, reduced by sales commissions paid to third parties. (u) Holdback Termination Date. The date on which the Developer has completed at least 110,800 square feet of retail and 739 units of housing including at least 146 units of Affordable Housing and the completed improvements have a minimum Assumed Market Value of at least $158,315,000. (v) Improvements. The Minimum Improvements and any additional improvements which may be constructed on the Property in accordance with the Development Plans. (w) Interim Note. The Note issued by the EDA to the City in an amount equal to the purchase price of the Acquired EDA Parcels. (x) Mall Assumed Value. $5,750,000, provided, the Developer must provide a written appraisal prepared in accordance with the Uniform Standard of Professional Appraisal Practice and which appraisal must be validated by a review appraisal undertaken by the City. (y) Markup. Any excess of the price paid by the Master Developer for a parcel of property purchased by an affiliate or member of the Master Developer or other person having a direct or indirect financial interest in the Development or this Agreement over the price paid by such other person, whether or not the property was acquired by the Master Developer in an arms- length transaction and, in the case of the property known as the Cedarvale Mall, there shall be deemed to be a Markup of $2,350,000. (z) Master Developer. Cedar Grove Properties, Inc., a Minnesota corporation, and any Permitted Successor Developer. (aa) Master Developer's Profit. For a Phase or for the Development as a whole, the amount by which Gross Revenues exceed Base Costs for the Phase or Development, as the case may be. (bb) Minimum Improvements: Each and all of the improvements to be constructed on the Property which are described in Exhibit E hereto, as the same may be modified in accordance with Section 3.1 hereof. (cc) Mort ag ~e .and Holder. The term "mortgage" shall include the mortgage or mortgages referenced in Article IV of this Agreement and any other instrument creating an encumbrance or lien upon the Development or any part thereof as security for a loan. The term "holder" in reference to a mortgage includes any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (dd) Necessary Elements. Affordable Housing as described and to the extent provided in Section 3.13, a hotel meeting the requirements of Section 3.14 hereof or an alternative structure substituted therefore pursuant to Section 3.14 hereof, and, to the extent provided in Section 3.12, the Transit Station I Improvements. 4 (ee) Offsite Improvements. The traffic control facilities recommended by the AUAR dated September 24, 2002 and updated as of December 21, 2004, or other similar improvements constructed in lieu thereof. (ffj Other Parcels. The parcels of property to be acquired by the EDA or the Developer which are described in Exhibit L hereto. (gg) Permitted Successor Developer. Means (i) any corporation or limited liability company owned or controlled by the Master Developer or an affiliate of the Master Developer; (ii) any general or limited partnership controlled by the Master Developer or an affiliate of the Master Developer; or (iii) any construction or permanent lender who has provided financing for any of the Improvements described herein. (hh) Phase or Phases. The stages of the Development, each of which is to be described in a Supplement to this Agreement. (ii) Phase Minimum Improvements. Each and all of the improvements to be constructed on a Phase Property as finally approved by the City and described in the Supplement executed for such Phase. (jj) Phase Property. The real property which is included within the TIF District and which is described in the Supplement executed for that Phase. (kk) Phase Site Plan. Plans for development of a Phase or portion thereof as described in Section 3.2. (11) Pledged Tax Increment. As of any February 1 or August 1 payment date and with respect to the Property or any portian thereof, 90% of that portion of the tax increment actually received by the City or EDA since the preceding payment date which equals the amount of tax increment which would have been received if it had been computed based on the lesser of the most recent assessor's market value of the Phase Property (or Property, as applicable) or the assessor's market value of the Phase Property as of the January 2 immediately following the issuance of a Certificate of Completion for the Phase. (mm) Pro Forma Principal Amount. Except as provided in Section 5.1, the amount necessary to bring the Master Developer's Profit for the Phase or whole Development, as the case may be, to 12% of Base Costs. (nn) Pro :The real property which is depicted on Exhibit A hereto. (oo) Property Acquisition Costs. The Public Acquisition Costs and the costs to the Developer of acquiring the Acquired Developer's Parcels and the Other Parcels. (pp) Public Acquisition Costs. The costs to the City and the EDA of acquiring the Other Parcels. 5 (qq) Public Improvements. Any portion of Transit Station I constructed as a local improvement and other public infrastructure improvements (including but not limited to streets and internal roads, sewer, storm sewer and water) constructed under Minnesota Statutes, Chapter 429 and which benefit the Property, but not including the Offsite Improvements. (rr) Purchase Agreement. The Purchase Agreement between the EDA and Master Developer to be entered into in connection with the purchase by the Developer of the Acquired EDA Parcels and those Other Parcels which the EDA may acquire, the form of which Purchase Agreement is attached as Exhibit I. (ss) Redevelopment Plan. The Redevelopment Plan for the Redevelopment Project Area, as amended from time to time. (tt) Relocation Costs. 'The relocation costs required by law or agreement to be paid to the owners and tenants of the Property. (uu) Repurchase Agreement. The Repurchase Agreement between the EDA and the Master Developer relating to the parcels purchased by the Developer under a Acquired Purchase Agreement, which form of Repurchase Agreement is attached as Exhibit B to the Purchase Agreement. (w) Supplement. The Supplement to this Agreement required by Section 3.1 hereof to be executed prior to the commencement of each Phase substantially in the form of Exhibit D. (ww) Targets. The elements of the Development required by Section 3.1 hereof to be completed by specific dates as specified in Exhibit E hereto. (xx) Tax Increment Notes (TIF Notes). 'The Tax Increment Revenue Notes to be issued by the EDA to finance a portion of the costs of the TIF District, in substantially the forms attached as Exhibit G-1 and G-2. (yy) Tax Increment Financing District (TIF District). Tax Increment Financing District No. 1 created by the EDA pursuant to Minnesota Statutes Sections 469.174 through 469.179 and described in the TIF Plan adopted therefor, and any other tax increment financing district which may be created within the area presently encompassing Tax Increment Financing District No. 1 which may be created pursuant to Section 2.3 hereof following decertification of portions of Tax Increment Financing District No. 1. (zz) Tax Increment Financing Plan (TIF Plan. The plan for development of the TIF District adopted by the EDA pursuant to Minnesota Statutes Sections 469.174 through 469.179 and, in the case of Tax Increment Financing District No. 1, approved by a resolution of the City Council adopted in 2002. (aaa) Total Development Costs. The sum of the following costs paid by the Master Developer: (i) Eligible Costs, (ii) costs of construction of Improvements, (iii) construction loan interest (including capitalized interest), and (iv) overhead, planning, legal and other costs related 6 to the Development; provided, however, that the cost of acquiring the property known as the Cedarvale Mall shall not exceed the Assumed Mall Value and no sales commissions paid in connection with the sale of property shall be treated as a cost but, to the extent paid to third parties who aze not affiliated with the Developer and in a transaction other than sale of the Cedarvale Mall, shall be treated as a reduction in the revenues derived from the sale thereof. (bbb) Transit Station I. The parking and other facilities constructed for transit station purposes pursuant to Section 3.12 hereof. (ccc) Transit Station I Improvements. To the extent provided in Section 3.12, the improvements to be made by the Developer which complement Transit Station I consisting of at least 15,000 square feet of commercial space to be described in greater detail in a Supplement. (ddd) Transit Station I Parcel. The parcel on which Transit Station I is expected to be located as described in Exhibit M hereto. (eee) Other Terms. Terms defined in other sections of this Agreement have the meanings given them. (fff) Unavoidable Delays. Delays which aze the direct result of strikes, fire or other casualty, war, material shortage, weather, causes beyond the constructing party's control, or acts of God, or acts of any federal, state or local government unit, legal proceedings brought by a non-party to this Agreement or, an "economic recession" defined as two consecutive quarters prior to December 31, 2007, in which there is a drop in the gross domestic product, except those acts anticipated or contemplated under this Agreement. Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Depiction of Property. B. Development Concept and Schedule. C. Schedule of Gross Revenues and Total Development Costs. D. Form of Supplement. E. Targets. F. Certificate of Completion. G. Forms of Tax Increment Notes. H. Land Sales Pro Forma I. Forms of Purchase Agreement and Repurchase Agreement. J. Legal Description of Acquired EDA Parcels. K. Description of Other Pazcels. L. Depiction of Transit Station I Parcel. M. Form of Estoppel Certificate. N. Estimated Sale Prices of Affordable Housing Property. 7 Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the state of Minnesota. (b) The words "herein" and "hereof "and words of similaz import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than any particulaz section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregazded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND COVENANTS Section 2.1 >~ the Master Developer. The Master Developer makes the following acknowledgements, representations and covenants: (a) The Master Developer has the legal authority and power to enter into this Agreement. (b) The Master Developer (or one or more Development Rights Assignees) will, to the extent required by this Agreement, construct or cause the construction of the Minimum Improvements in accordance with the terms of this Agreement, the TIF Plan and all local, state and federal laws and regulations, and will construct or cause the construction of or pay the costs of construction of any site improvements, utilities, pazking facilities, or landscaping improvements which are necessary in connection with the construction and operation of the Improvements. (c) At such time or times as may be required by law, the Master Developer will have complied with all applicable local, state and federal environmental laws and regulations, will have obtained any and all necessary environmental reviews, licenses or clearances under, and will be in compliance with the requirements of the National Environmental Policy Act of 1969, the Minnesota Environmental Policy Act, and the Critical Area Act of 1973. (d) The Master Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, all requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed. 8 (e) The Master Developer's investment in the purchase of the Property and site preparation, after giving effect to the TIF Notes, will be at least ?0% or more of the assessor's current year's estimated market value and, accordingly, Minnesota Statutes, Sections 116J.993 to 116J.995, do not apply to this Development Agreement or the assistance provided by the TIF Notes. (f) For purposes of determining Gross Revenues hereunder, in the absence of satisfactory evidence provided by the Developer that sales of land were at fair market value, sates aze deemed to have occurred at the prices set forth in Exhibit H. The Developer shall not enter into any agreement whereby the Developer directly or indirectly receives consideration from the purchaser in exchange for a sale of property below mazket value. Section 2.2 By the EDA and City. The EDA and City make the following representations asthe basis for the undertaking on its part herein contained: (a) The EDA and City are authorized by law to enter into this Agreement and to carry out their respective obligations hereunder; (b) The City will review plans for each Phase under its PD Planned Development District zoning standazds as set forth in City Ordinances Section 11.60, Subd. 18. (c) The EDA intends to treat the issuance of the TIF Notes as payment or reimbursement for eligible costs under Minnesota Statutes, Section 469.176, Subd. 4. The Property was determined by the EDA's consultants to include pazcels which contain structurally substandard buildings and adjacent parcels necessary to provide a site of sufficient size to permit an integrated development. (d) The EDA and City make no representations or warranties as to the due establishment of the TIF District or its qualification as a "redevelopment district," but have provided the Master Developer with copies of all requested documents and proceedings relating to the establishment thereof. Section 2.3 Cost Allocations. The parties acknowledge that the TIF Notes authorized hereby are deemed to reimburse the Eligible Costs paid or incurred at the earliest date, notwithstanding the formula for determining the amount of the TIF Notes. Section 2.4 Assignment of Development Rights. The Master Developer intends to assign the Development Rights, or portions thereof, to one or more Development Rights Assignee(s), whereupon such Development Rights Assignee(s) shall become the Developer(s) hereunder. The EDA agrees that it will not unreasonably withhold its consent to such other responsible developer of a portion of the Minimum Improvements as the Master Developer may propose as a Development Rights Assignee hereunder. The EDA shall be entitled to require, as conditions to any approval of any Development Rights Assignee under this Section, that: (a) The Master Developer retain design control with respect to the Improvements to be constructed by the proposed transferee; 9 (b) Any Development Rights Assignee shall have the qualifications and financial responsibility necessary to fulfill the obligations undertaken in this Agreement by the proposed transferee; (c) The Development Rights Assignee enters into a written agreement by which it assumes and agrees to perform the obligations of a Developer under this Agreement, performance of which is due on or after the date of assignment, and agrees to be subject to all the conditions and restrictions to which the Master Developer is subject; (d) The Development Rights Assignee makes, as of the date of assignment, all representations and (for activities and events occurring on or after the date of assignment) warranties made in this Agreement by the Master Developer (including, without limitation, the representations and warranties contained in Section 2.2); (e) If less than the entire Development Rights aze being conveyed, the portion of the Minimum Improvements being allocated to the Phase or portion thereof for which Development Rights are being conveyed to the Development Rights Assignee must be compatible with the completion of the portion of the Minimum Improvements allocated to the Phase or portion of the Phase not being conveyed. (f) The Dakota County Community Development Agency shall not be considered a Development Rights Assignee hereunder and the Master Developer has no obligarion to provide for the construction of affordable housing on the Community Development Agency Parcels. ARTICLE III. CONSTRUCTION OF IMPROVEMENTS• PUBLIC IMPROVEMENTS• OTHER DEVELOPER OBLIGATIONS Section 3.1 Construction of Minimum Improvements. The Master Developer agrees that it (or a Development Rights Assignee) will, subject to Unavoidable Delays, construct or cause to be constructed the Minimum Improvements and any other improvements which the Developer elects to construct on the Property in Phases substantially in accordance with the Development Plans. Prior to the commencement of a Phase the Master Developer shall complete and submit to the EDA a Supplement to this Agreement which (a) designates a number for the Phase, (b) sets forth the legal description and pazcel identification numbers of the parcels to be included in the Phase, (c) identifies the Phase Minimum Improvements to be constructed as part of the Phase, (d) identifies the Assumed Market Values of the Improvements to be constructed in that Phase, (e) identifies the reasonably estimated completion date of the Phase Minimum Improvements, (f) attaches any new or revised Development Concept and Schedule which reflects the Master Developer's then current expectations as to the scheduled staging of the Minimum Improvements and (g) specifies any modifications of the Targets for which approval is being requested and the reasons for such request. If the Supplement conforms to the Targets, after giving effect to Minimum Improvements completed and under construction in other approved Phases and if the EDA has approved any request for modification of the Tazgets, the 10 Executive Director shall execute the Supplement to evidence the EDA's approval thereof. Upon execution of each Supplement, a memorandum of this Development Agreement may be recorded with respect to the Phase Property described in the Supplement. Section 3.2 Phase Site Plans. Prior to commencing construction of the Minimum Improvements for a Phase, the Developer must submit Phase Site Plans for the Phase to the EDA for review. The Phase Site Plans must provide for the construction of the Minimum Improvements for that Phase in a manner that conforms to the Tax Increment Financing Plan, this Agreement and all applicable federal, state and local laws, statutes, ordinances and regulations. The EDA must notify the Developer, within thirty (30) days of the Developer's submission of complete Phase Site Plans for a Phase to the EDA, that the EDA either approves or rejects the Phase Site Plans. The EDA may reject the Phase Site Plans only if: (a) The Phase Site Plans are not complete; (b) The EDA reasonably believes the Phase Site Plans and the improvements contemplated thereby do not conform to the Tax Increment Financing Plan or to one or more applicable federal, state or local laws, ordinances, rules or regulations; (c) The improvements depicted on and described in the Phase Site Plans do not substantially conform to the description of the Minimum Improvements for that Phase; or (d) The EDA staff reasonably determines that the Phase Site Plans do not provide for the construction of Minimum Improvements consistent with the City of Eagan Design Standards. The EDA must include in any written notice rejecting Phase Site Plans, in whole or in part, specifics as to the EDA's basis, under this Section 3.2, for rejecting the Phase Site Plans. If the EDA notifies the Developer that the EDA is rejecting the Phase Site Plans for a Phase, in whole or in part, the Developer must submit new or revised Phase Site Plans to the EDA within thirty (30) days after the Developer receives written notification from the EDA of the EDA's rejection of the Phase Site Plans. Within five (5) business days after the Developer's submission of new or revised Phase Site Plans for a Parcel to the EDA, the EDA must notify the Developer that the EDA either approves or rejects the new or revised Phase Site Plans. The EDA's approval of Phase Site Plans pursuant to this Section 3.2 constitutes approval for the purposes of this Agreement only and does not constitute a representation or warranty that the Phase Site Plans comply with any applicable building code, health or safety regulation, zoning or other land use regulation, environmental law or other law or regulation. The EDA's review and approval or disapproval of the Phase Site Plans pursuant to this Agreement is not intended to and does not satisfy any requirements of the City's ordinances or other City permitting policies and is not intended as a substitute for Planning Commission review, public hearings or any other plan review provided for therein. EDA and City reviews and approvals may occur independently and EDA review and approval need not occur prior to City Council review under the City's ordinances and policies. The provisions of this Section 3.2 relating to the submission, approval, rejection and resubmission of Phase Site Plans continue to apply until the EDA has approved the Phase Site Plans. The EDA's approval of the Phase Site Plans does not relieve the Developer of any obligation to comply with the terms and provisions of this Agreement, the provisions of any 11 applicable federal, state or local laws, ordinances or regulations or the payment of fees or satisfaction of local requirements for sewer and water availability, park dedication and other requirements.. If the Developer desires to make any material change to the Phase Site Plans for a Phase after the EDA has approved them, the Developer must submit the proposed change to the EDA for its review and approval, and the EDA must approve the proposed change unless the EDA reasonably determines that, as a result of the proposed change, one or more of the requirements set forth in Section 3.2 (a) through 3.2 (d) are not satisfied. If the EDA rejects the proposed change the EDA must notify the Developer of the EDA's rejection of the proposed change within ten (10) Business Days of the EDA's receipt of the proposed change. Section 3.3 Completion of Construction. Subject to Unavoidable Delays, the Developer shall submit the Phase Site Plan for the first Phase to the EDA prior to December 31, 2006 and construction of that and subsequent Phases shall be commenced and completed so that all of the Targets are met. All construction shall be in conformity with the approved Development Plans. Periodically during construction, but at intervals of not less than 60 days, the Developer shall make reports in such detail as may reasonably be requested by the EDA concerning the actual progress of construction. Section 3.4 Certificate of Completion. Promptly after notification by the Developer of completion of each of the Phase Minimum Improvements, the EDA shall inspect the construction to determine whether it has been substantially completed in accordance with the terms of this Agreement, including the date for the completion thereof. In the event that the EDA determines that the construction has been completed substantially in accordance with the Development Plans and applicable regulations and that the Targets established by this Agreement have not been violated, the EDA shall furnish the Developer with a Certificate of Completion for that Phase in the form of Exhibit F. Such certification by the EDA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of the Developer to construct or cause to be constructed the Phase Minimum Improvements, and shall constitute a release of the Developer's obligations hereunder with respect to that Phase. Notwithstanding the foregoing this Development Agreement shall be deemed to be released as an encumbrance on any parcel of property upon the issuance of a certificate of occupancy by the City for that parcel. Section 3.5 Property Acquisition. The real property necessary to be acquired for the Development consists of the Acquired EDA Parcels and the Other Parcels. The EDA agrees to sell Acquired EDA Parcels to the Master Developer after the Planned Development involving such Acquired EDA Parcels has been approved by the City for a price of $1.00 each in accordance with the terms set forth in the form of Purchase Agreement attached hereto, which shall be entered into with respect to Acquired EDA Parcels included in each Phase at the commencement of such Phase. At the request of the Developer the EDA will commence proceedings to acquire such Other Parcels as aze identified in the request through the exercise of the EDA's powers of eminent domain, including, without limitation and when requested, the use of "quick take". The EDA shall hold public hearings in accordance with Minnesota Statutes, Section 469.012, Subd. 1 g, with respect to acquisition of the Other Parcels by condemnation. 12 Upon adoption of an authorizing resolution the EDA shall use its best efforts to acquire by condemnation such of the Other Parcels as the Developer has requested. With respect to the Other Parcels which the EDA determines to acquire, the EDA may at its option either (a) authorize all or any designated Other Parcels to be acquired by the Dakota County Housing and Redevelopment Authority as its agent or (b) directly acquire such Other Parcels by negotiation or condemnation; provided, however, that the EDA shall have no obligation to pursue condemnation or to purchase or pay for any of the Other Parcels until the Developer has delivered the Letter of Credit to the EDA pursuant to Section 3.9 hereof. If the EDA acquires any of the Other Parcels, pursuant to a Developer's request, the EDA may require that the Developer shall enter into a Purchase Agreement substantially in the form of Exhibit I. The EDA may also acquire Other Parcels in the absence of a request from the Developer and, as to such other pazcels, the EDA may require that the Developer shall enter into a Purchase Agreement to purchase the parcels at a price equal to the EDA's acquisition, relocation, demolition and carrying costs for such parcels on a date no later than the dates reflected in the then current Development Schedule for commencement of the Phase to which such pazcels relate. In either case the form of Purchase Agreement shall be completed with (a) a description of the parcel acquired by the EDA and to be reconveyed to the Developer, (b) a purchase price equal to the purchase price paid by the EDA, (c) a description of encumbrances revealed by a title investigation, (d) specification of a closing date not later than 30 days after acquisition by the EDA of the pazcel or such later date as the EDA may agree to, which agreement shall not be unreasonably withheld, and (e) specification of the amount of the Letter of Credit to cover Relocation Costs reasonably estimated by the EDA to be payable with respect to the parcel. Upon delivery of the Quit Claim Deed contemplated by the Purchase Agreement the EDA and Developer shall enter into the Repurchase Agreement which shall specify the Development Phase to which the parcel relates and a purchase price equal to the purchase price specified in the Purchase Agreement. The EDA makes no representation or warranty as to the status of title to the Property or as to the suitability of the Property for the Developer's purposes. Notwithstanding the foregoing or any other provision of this Agreement, the EDA and the Developer shall mutually agree on the location of one or more sites for affordable housing to be developed by the Dakota County Housing and Redevelopment Agency as part of the review and approval of the Development Plans for a Phase and create one or more parcels for such sites as part of the replatting process. Such pazcels shall then be transferred to the Dakota County Community Development Agency for affordable housing and the Developer shall have no obligation to purchase or pay fvr such Community Development Agency Parcels. The Developer shall deliver to the EDA periodic reports on the status of the private acquisition efforts and shall notice in a timely fashion to allow construction of the Development in accordance with the dates specified in Section 3.3 of this Agreement. 'The Developer acknowledges that the EDA does not warrant the successful conclusion of any eminent domain action or quick take procedures or the accomplishment of any particular result or timetable because of the many variables inherent in any litigation or legal proceeding. The EDA shall not be liable to any party for any consequential or other damages that may arise out of any delays due to environmental conditions, court challenges or elements outside the control of the EDA. The EDA shall consult with the Developer periodically throughout the proceedings with respect to the acquisition by eminent domain of any Other Parcel. 13 If the EDA is not successful in acquiring title to one or more of the Other Parcels through eminent domain proceedings, at the option of the Developer, this Agreement will be suitably and equitably modified and, if possible, the Development shall proceed without such Other Parcel. Section 3.6 Demolition. Prior to commencing the Phase in which a parcel is located or at such earlier time as the EDA may reasonably request after the Developer has acquired and has the right to occupy any parcel of Property, the Developer shall demolish all the buildings and other improvements thereon, except for buildings and improvements which are not required to be demolished as part of the Phase. Any demolition costs paid by the Developer with respect to the Property shall be deemed Eligible Costs hereunder to the extent accompanied by evidence of the reasonableness thereof. Section 3.7 Relocation. The EDA shall pay any Relocation Costs required to be paid by the EDA under Chapter 117, Minnesota Statutes, or any other law and shall be promptly reimbursed by the Developer, whether or not the property was acquired by the EDA or the Developer. Any relocation costs paid by or on behalf of the EDA (including those reimbursed by the Developer) shall be deemed Eligible Costs hereunder to the extent accompanied by evidence of the reasonableness thereof. The EDA shall endeavor to provide the Developer with estimates of such Relocation Costs and the Developer may comment on them, but failure in any case to provide a timely estimate shall not affect the Developer's obligation to reimburse the cost thereof. Section 3.8 Site Development. Any costs paid by the Developer to remedy any soil correction problems and to construct site improvements which are qualified expenditures under Minnesota Standby Section 469.176 hereto shall be deemed Eligible Costs hereunder to the extent accompanied by evidence of the reasonableness thereof. Section 3.9 Letter of Credit; Cash Deposit. As security for the Developer's obligation to reimburse the EDA by Phase for payment of Public Acquisition Costs, Relocation Costs and other costs hereunder, the Developer shall deliver to the EDA a cash security deposit or a Letter of Credit issued by a bank acceptable to the EDA which has an office in Minnesota. The cash deposit or a Letter of Credit shall be in an amount equal to the amount of the Public Acquisition Costs and Relocation Costs incurred or reasonably estimated to be incurred by the EDA in connection with its and the Developer's activities for the relevant Phase and shall otherwise be in a form acceptable to the EDA. The amount of the cash deposit or Letter of Credit shall be increased upon identification of a parcel to be acquired by the EDA hereunder. Upon reimbursement of the EDA by the Developer or direct payment of costs by the Developer in accordance with Sections 3.5, 3.6, 3.7 and 3.8 or the applicable Purchase Agreement, the amount of the cash deposit or Letter of Credit shall be reduced by a corresponding amount. Upon reimbursement to the EDA of all Public Acquisition Costs and Relocation Costs the EDA shall return the cash deposit or Letter of Credit to the Developer. The EDA may draw on the Letter of Credit on the earlier of (i) 20 days prior to its expiration date, or (ii) the occurrence of an Event of Default hereunder. 14 Section 3.10 Construction, of Public Improvements and Offsite Improvements. The City shall construct the Public Improvements as local improvements under Minnesota Statutes, Chapter 429 at such time as is necessary so that the Public Improvements will be compatible with the Development. The City has no obligation to construct any of the Offsite Improvements or otherwise construct traffic control facilities to meet AUAR requirements, but it may do so in its discretion. Section 3.11 Assessments. The City may assess all or any portion of the Property and other benefited properties pursuant to Minnesota Statutes, Chapter 429, for that portion, if any, of the cost of the Public Improvements which may be lawfully assessed against such property, except as otherwise provided by agreement of the City and this Agreement. In addition, the property owners shall pay the cost of the usual charges for water and sewer utility service for the Property. The City shall not levy any assessments against the Property for Offsite Improvements. The City shall not assess against the Property any costs of Project No. 800R other than those assessed prior to the date hereof. Section 3.12 Transit Station. The City plans, but is not required, to participate with other governmental units in the construction of Transit Station I. At the direction of the City, if given prior to December 31, 2007, the Developer shall construct the Transit Station I Improvements within 12 months of the completion of the Transit Station. Section 3.13 Affordable Housing. The Parties agree that Affordable Housing is an important component within the Development. The EDA will transfer the Community Development Agency Parcels to the Dakota County Community Development Agency for the development of affordable housing under its Workforce Housing Program. The parties currently estimate that the Developer will sell other land within the Development for use as Affordable Housing for the prices per unit expressed in Exhibit N (the "Pro Forma Affordable Housing Land Price"). On that assumption, Developer is willing to proceed with the Affordable Housing described below on the condition that it receives from the EDA and the City an aggregate subsidy of $5,000 per unit of Affordable Housing, consisting of reimbursement for any amount by which the aggregate of land sale revenues related to Affordable Housing units is less than the amount shown on Exhibit N. The EDA and City agree to provide such subsidies, subject to the conditions and procedures described in this Section 3.13. First, the City, the EDA and the Developer shall use their best efforts to pursue the receipt of public and private grants reasonably available for application to the subsidies described herein. Second, Developer shall apply for a housing subsidy for each Phase by giving the EDA 45 days written notice of each anticipated sale of land for Affordable Housing, which will include (i) a description of the land, (ii) the proposed sale price, (iii) the number of Affordable Housing units to be constructed on the land and (iv) such evidence of the reasonableness of the proposed sale price as the EDA may request. If the proposed sale price per unit (a) is less than the Pro Forma Affordable Housing Land Price plus $5,000 and (b) such that the aggregate of the receipts for Affordable Housing land sales and anticipated receipts from the proposed sale are less than the sum of (i) the product of (x) the number of previous and proposed Affordable Housing units and (y) the Pro Forma Affordable Housing Land Price, and (ii) the amount of grant funds received or receivable by the EDA and the City on account of such units, then the EDA may decline to approve the application. If the application is not approved within such period the Affordable Housing requirements set forth in 15 this section and the Necessary Elements shall be reduced by the number of Affordable Housing units described in the rejected application. Subject to such conditions, the Developer shall create Affordable Housing in the Development as follows: (a) 97 flats available for sale at a price no more than the Metropolitan Council's definition of affordable sales price, currently $193,700, before upgrades. (b) 30 flats available for sale, in addition to the units described in (a) above, which are affordable to households earning no more than 80% of median family income for the Minneapolis - St. Paul, MN - WI Metropolitan Statistical Area, as defined by the U.S. Department of Housing and Urban Development ("MFI"). These units will be encouraged to take advantage of the homebuyer assistance programs administered by the Dakota County Community Development Agency ("CDA"). (c) 30 - 40 townhomes available for rent for households earning no more than 60% of MFI, with rents affordable to households earning no more than 50% of MFI, to be operated by CDA or another rental housing provider and built by the operator of the housing or a Permitted Successor Developer or Development Rights Assignee. These units will be located on Property during a Phase based on Development Plans and a Supplement. (d) 14 - 28 flats (as determined based on the percentages identified below) available for rent in amixed-income, mixed-use building. These units will either be 20% occupied by households with less than 50% MFI or 40% occupied by households with less than 60% MFI. The Developer shall certify compliance with the requirements of paragraphs (a) and (b) upon the initial sale of units constructed to qualify as Affordable Housing and shall certify compliance with the requirements of paragraph (d) of this section for the duration of the TIF District, in the same manner and at such intervals as aze provided for the program under which the units are financed (e.g. federal tax credits or tax exempt multifamily housing bonds) or, if no such program applies, as if such units were financed as a "housing district" under Minnesota Statutes Section 469.174. Section 3.14 Hotel or Alternative Structure. On or before December 31, 2009, and after December 31, 2008, the Developer may cause a report to be proposed by an independent consultant acceptable to the EDA which addresses the financial feasibility of constructing an approximately 120,000 square foot hotel of at least six stories and reaching an elevation of 885 MSL at the approximate location shown on Exhibit B. In the event the feasibility report does not demonstrate that the hotel will be financially feasible, then the hotel is no longer a Necessary Element and there shall be substituted therefore as a Necessary Element a vertical feature of at least six stories and no less than 85 feet tall reaching an elevation of at least 885 MSL and is an office building with convenience retail. Alternatively, if the Developer causes a report to be prepared by an independent consultant acceptable to the EDA which addresses the financial feasibility of constructing an office building with convenience retail that the same is not financially feasible, then there shall be substituted thereto, as a Necessary Element, a vertical feature of at least six stories and no less than 85 feet tall reaching an elevation of least 885 MSL, which contains primarily residential and at least 10,000 square feet of retail. In the event applicable building codes are amended subsequent to the date hereof in a manner which results in substantially increased costs for constructing buildings to the height specified herein the 16 parties will consider alternatives which substantially achieve the EDA's goal of a high visibility structure without an undue burden on the Developer. Section 3.15 DeQosit. Upon the execution hereof, the Master Developer shall deposit $50,000 with the EDA which the EDA may apply to administrative charges and consulting fees relating to the negotiation and preparation of this Agreement and the performance of the EDA's and City's obligations hereunder, at the standard hourly rates customarily charged to developers in the City plus the actual fees of Ehlers and Associates, Inc. and Faegre & Benson LLP. The deposit is nonrefundable, except for any unused balance at the completion of Phase I. Section 3.16 Environmental Review. As of the date of this Agreement, the EDA has not provided environmental reviews of the Acquired EDA Parcels or the Other Parcels to the Developer. Upon request of the Developer, and to the extent access to the property is granted, the EDA shall have prepared, at the EDA's sole cost and expense, Phase II Soil and Groundwater Environmental Site Assessments ("Phase II ESA") for any of the Acquired EDA Parcels or the Other Parcels. For any Phase I ESA or Phase II ESA prepared and delivered pursuant to this section, the Developer shall be designated as the "user" of the environmental report and shall be entitled to rely on the report in all respects. (a) Following completion of any Phase I ESA or Phase II ESA and upon request of the Developer, the City and the EDA shall perform necessary and reasonable actions to apply with Minnesota Department of Employment and Economic Development ("DEED") and the Metropolitan Council ("Met Council") for contamination cleanup grants for remediation of any and all environmental conditions identified in any Phase I ESA or Phase II ESA. (b) Developer shall cooperate and assist with all grant applications. For any grants awarded, the EDA will pay any DEED local match (to the extent not satisfied by a Met Council grant). (c) The City or the EDA shall perform or pay the cost of remediation of any and all contamination on any Acquired EDA Parcel or Other Parcel to the extent such costs, exclusive of costs paid or reimbursed from grants; provided, however, that the City and the EDA may terminate this Agreement and their obligations hereunder, except with respect to Phases which are in progress, shall cease at the option of the City and the EDA, exercisable upon a determination by each of the EDA and City that estimated remediation costs and grant awards will result in a payment or performance obligation under this clause that is unacceptable in the sole discretion of the City and the EDA. In such event, upon completion of those Phases which were in progress at the time of termination, the Developer shall be deemed to have completed the Minimum Improvements and Necessary Elements hereunder. Section 3.17 Open Space and Other Amenities. The City and EDA expect that the Improvements will include integrated open space and other aesthetic elements such as a water feature, public seating, unique landscaping or other elements of public interest whether or not such elements are Eligible Costs for tax increment financing purposes; provided however that the Developer shall not be required to include open space and other aesthetic elements if such inclusion 17 would adversely affect its ability to meet the Targets or achieve the level of Master Developer's Profit contemplated by this Agreement. The general expectations outlined in this section have not been delineated in the Development Plans as of the date hereof. Unless separately approved by a supplement to this Agreement, the Developer's progress toward the meeting of these expectations may be a consideration of the City Council in the exercise of its discretion in the process of its review of planned unit development plans submitted by the Developer as the Development progresses. ARTICLE IV. LIMITATION UPON ENCUMBRANCE• PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER• SUBORDINATION Section 4.I Prohibition Against Transfer Before Completion of Minimum Improvements. The Developer represents and agrees that except (1) to obtain financing to develop the Minimum Improvements for a Phase and perform its obligations under this Agreement, and (2) assignment of the Development Rights to a Development Rights Assignee pursuant to Section 2.4, including its obligations to construct the Minimum Improvements for that Phase, the Developer shall not transfer or convey legal or equitable title to this Agreement or any property within that Phase until the EDA has issued a Certificate of Completion for the Minimum Improvements for that Phase, without the EDA's prior written approval which may not be unreasonably withheld. The EDA will consent to a transfer and assignment of the Developer's rights under this Agreement to an affiliate of Developer (a "Developer Assignee"), provided the Developer Assignee and Developer execute an agreement acceptable to EDA whereby Developer Assignee agrees to assume the obligations of Developer under this Agreement. In addition to the above, a Developer of housing units may, in the regular course of business and without prior written notice to the EDA, sell, assign, convey, lease or transfer in any other mode or manner substantially completed housing units for which a certificate of occupancy has been issued to an individual purchaser. At the time of each such sale, the transferred property and purchaser thereof will be released from any obligations with respect to this Agreement. Section 4.2 Leases and Easements. Notwithstanding the foregoing provisions of this Article IV, each Developer may enter into leases with Permitted Successor Developers or enter into leases in the ordinary course of business for space in the Improvements on anarms-length basis in favor of unrelated third parties. Each Developer may also grant easements or other similar agreements necessary for the operation of the applicable Improvements without the need for EDA consent. Section 4.3 Termination of Restrictions on Transfer. All restrictions on transfer set forth in this Agreement shall terminate with respect to each parcel of property within a Plan as of the date the applicable Certificate of Completion for that Phase is issued. Section 4.4 Transfer Under Mort~a~es. Nothing in this Agreement shall prohibit (or require any consent from EDA with respect to) any transfer of all or any portion of or interest in 18 the Property or Minimum Improvements pursuant to foreclosure of any Mortgage, or conveyance in lieu of any such foreclosure. The purchaser at any such foreclosure sale (or grantee of any such conveyance in lieu of foreclosure) shall be permitted to make a subsequent transfer of the rights acquired by such foreclosure sale (or conveyance in lieu) to a subsequent transferee, provided such subsequent transferee assumes the obligations of the applicable Developer hereunder and (i) if the subsequent transfer is Minimum Improvements for which a Certificate of Completion has not been issued, then the subsequent transferee must be a responsible contractor or developer reasonably acceptable to the EDA, or (ii) if the subsequent transfer includes only Minimum Improvements for which a Certificate of Completion has been issued, then the EDA may not withhold consent to the subsequent transferee. Any holder that acquires by foreclosure of its Mortgage all or any portion of the Property shall be treated as an assignee hereunder. Section 4.5 Subordination and Modification for the Benefit of Mortgagees. (a) In order to facilitate the obtaining of temporary or permanent financing for the acquisition and development of the Property and construction or purchase of the Improvements by the Developer or others, the EDA agrees to subordinate its rights under this Agreement to the holder of any mortgage entered into for the purpose of obtaining such fmancing, except its right to repurchase parcels conveyed to the Developer under the Repurchase Agreements. (b) In order to facilitate the obtaining of financing for the acquisition and development of the Properly and construction or purchase of the Improvements, the EDA agrees that it shall agree to any reasonable modification of this Article IV or waiver of its rights hereunder to accommodate the interests of the holder of the Mortgage, provided, however, that the EDA determines, in its reasonable judgment, that any such modification(s) will adequately protect the legitimate interests and security of the EDA with respect to the Development. ARTICLE V. TAX INCREMENT NOTES• BONDS Section 5.1 Issuance of Tax Increment Notes. The Master Developer shall maintain books and records relating to the financing, construction and sales of the parcels of Property and Improvements in accordance with generally accepted accounting principles consistently applied. Upon completion of the sales of Property and Improvements in each Phase the Master Developer shall furnish the EDA full and complete copies of such books and records and a completed copy of a summary of the Gross Revenues, Total Development Costs and Base Costs for that Phase on the form attached as Exhibit C hereto. Subject to the further provisions of this Section and except in the case of the final Phase, the EDA shall, upon completion of the Minimum Improvements for each Phase, and the issuance of a the Certificate of Completion therefor, issue to the Developer a Tax Increment Note for that Phase substantially in the form of Exhibit G-1. The principal amount of the TIF Note issued upon completion of the Minimum Improvements for each such Phase shall be the lesser of (i) the Adjusted Eligible Costs or (ii) the Pro Forma Principal Amount for that Phase; provided that if upon completion of a Phase the total of outstanding TIF Notes shall exceed the lesser of (a) $20,000,000 in principal amount or (b) the Pro Forma Principal Amount determined on an aggregate basis for that Phase and all prior 19 Phases, then the principal amount of the outstanding TIF Notes shall be reduced pro rata by an aggregate amount equal to such excess; and further provided that for purposes of this section the Pro Forma Principal Amount shall be reduced by $408,000 (12% of $3,400,000) with respect to the Phase which includes the Cedarvale Mall and increased by $1,629,000 ($250,000 plus one- half of $408,000 ($204,000) plus one-half of Markup ($1,175,000)) with respect to the Phase the completion of which results in the Holdback Termination Date. Upon completion of all Phases of the Minimum Improvements, including the Necessary Elements, and the issuance by the EDA of the Certificate of Completion for the last Phase, the EDA will issue in exchange for the TIF Notes previously issued under this Section 5.1 the Consolidated TIF Note in the form attached hereto as Exhibit G-2 in a principal amount equal to the lesser of (a) the aggregate of all Eligible Costs or, (b) the Pro Forma Principal Amount for the Development as a whole, plus $3,258,000 (the $2,350,000 Markup plus $408,000 plus $500,000 Development Fee) or (c) $20,000,000, in each case reduced by any prior payments of principal on the TIF Notes. Each TIF Note shall bear interest at the rate of 6.50% per annum, and shall be payable in semiannual installment payments payable on each February 1 and August 1 to and including February 1, 2029. Semi- annual installment payments shall be applied first to interest and then to a reduction in outstanding principal. Interest on the outstanding balance of each TIF Note shall accrue from the date of issue or most recent installment payment date and, if not paid on an installment payment date, shall be added to principal. The TIF Notes shall be dated as of the Completion Dates of the Phase for which they were issued and shall mature on February 1, 2029. The Master Developer covenants and agrees not to sell, transfer or convey the TIF Notes without the express written consent of the EDA; provided, however, that the Master Developer may, without such consent, (i) pledge or grant a security interest in a TIF Note to a lender as security for a loan or (ii) after 10 days' prior written notice to the EDA, transfer a TIF Note to an institutional investor which has acknowledged in writing that (a) it is acquiring the TIF Note for purposes of investment and not for resale, (b) it is not relying on any representations or warranties of the EDA or City, express or implied, as to the availability or adequacy of the tax increment to pay principal and interest or upon any funds of the City or EDA and (c) all subsequent transfers shall meet such conditions. The Master Developer acknowledges that the EDA makes no representations as to the adequacy of tax increments available to pay any of TIF Notes. The TIF Notes shall be payable solely from the Pledged Tax Increment from a portion of the TIF District received by the EDA to the extent provided in Section 5.2 hereof and the EDA shall have no other liability on either TIF Note, nor shall either TIF Note be payable out of any funds or properties of the EDA or City other than Pledged Tax Increment from the TIF District. Section 5.2 Tax Increment Available for TIF Notes. The semi-annual installments due on each TIF Note, except the Consolidated TIF Note, shall be paid solely from the Pledged Tax Increment from collections of ad valorem taxes from the Phase Property to which the TIF Note relates. The semi-annual installments due on the Consolidated TIF Note shall be paid solely from the Pledged Tax Increment from collections of ad valorem taxes from the Property as a whole. Receipts of Pledged Tax Increment shall be applied first to accrued and unpaid interest and then to principal. No installments on either TIF Note are required to be paid after February 1, 2029, regardless of whether the TIF Note has been paid in full. Neither the EDA nor City 20 shall pledge or appropriate any Pledged Tax Increment from any portion of the Property to the payment of any other obligation until the TIF Note relating to that portion of the Property has been paid in full. The EDA and City may apply collections of tax increment from the Property which exceed Pledged Tax Increment to administrative expenses or any other lawful purpose. Section 5.3 Refundin Bonds. (a) The EDA may at its option and subject to mazket conditions issue tax increment revenue bonds to refund the Consolidated TIF Note (the "Refunding Bonds"). The principal amount of the Refunding Bonds shall be based on such debt service coverage ratio (based on tax increments expected to be generated by the market value of the Improvements under the current law) as is necessary to sell the Refunding Bonds at par. The Master Developer acknowledges that the maximum amount the EDA will pledge to repay the Tax Increment Refunding Bonds are Pledged Tax Increments, and that the EDA will determine, in its sole discretion, the principal amount of the Refunding Bonds to be issued. In determining the principal amount of the Refunding Bonds to be issued, the EDA will consider, among other things, the taxable market values of the completed Minimum Improvements. (b) The terms and conditions of the Refunding Bonds will be set forth in a resolution to be adopted by the Board of Commissioners of the EDA (the "Bond Resolution"). In the event of a conflict between the terms and conditions hereof and the terms and conditions of the Bond Resolution, the terms and conditions of the Bond Resolution shall prevail. (c) In the event the net proceeds of the Refunding Bonds are not sufficient to provide for payment of the entire principal amount of the outstanding Consolidated Tax Increment Note, the Refunding Bonds will not be issued until the Master Developer either (i) provides the EDA with an amount, together with the net proceeds of the Refunding Bonds, sufficient to pay the outstanding principal and interest of the Consolidated Tax Increment Note or (ii) the Master Developer agrees to subordinate its rights to payment under the Consolidated TIF Note to the Refunding Bonds and the scheduled payments under the Interim Note. (d) Upon issuance of the Refunding Bonds, the EDA will apply the Pledged Tax Increments from the Property in the following order of priority: (i) To the paying agent for the Refunding Bonds, to pay scheduled principal and interest on the Refunding Bonds; (ii) To the EDA, payments sufficient to pay principal and interest on the Interim Note when scheduled, regardless of whether the Interim Note has been paid; and (iii) To the Master Developer, to pay any scheduled principal and interest on the Consolidated TIF Note. 21 ARTICLE VI. EVENTS OF DEFAULT Section 6.1 Developer Events of Default Defined. The following shall be deemed Events of Default by the Developer under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to observe and substantially perform any material covenant, condition, obligation or agreement on its part to be observed or performed hereunder, if such failure shall continue for a period of thirty (30) days after written notice of such failure is given by the EDA or the City to the Developer and to any construction or permanent lender who shall have requested such notice; provided ,however, that if such failure is of such nature that it cannot with diligence be cured within thirty (30) days, and provided further that within such thirty (30)-day period the Developer or a construction or permanent lender has commenced such cure and thereafter diligently prosecutes such cure, such thirty (30)-day period shall be extended to the period reasonably necessary to cure such failure; (b) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Development; (c) If the Developer shall file a petition under the federal bankruptcy laws; or (d) If the Developer, on a petition in bankruptcy filed against it, be adjudicated a bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 120 days from the date of entry thereof. Section 6.2 EDA and City Remedies on Default. Whenever any Event of Default occurs, the EDA and the City may, in addition to any other remedies or rights given the EDA and the City under this Agreement, take any one or more of the following actions: (a) suspend their performance under this Agreement until they receive assurances from the Developer, deemed reasonably adequate by the EDA and the City, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement, except with respect to Phases for which a Certificate of Completion has been issued; 22 (c) if the Event of Default relates to failure to reimburse the EDA for Relocation Costs or other costs hereunder, draw on the Letter of Credit or cash deposit provided for in Section 3.9 hereof. (d) withhold the Certificate of Completion for the Phase to which the Event of Default relates; or (e) take whatever action at law or in equity may appear necessary or desirable to the EDA or the City to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement. Once a Certificate of Completion has been issued for a Phase, the Developer has no further obligations hereunder with respect to that Phase, and no remedy shall affect the right of the Developer to receive payment under the TIF Note for the Phase for which the Certificate of Completion has been issued. Section 6.3 No Remedv Exclusive. No remedy herein conferred upon or reserved to the EDA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the EDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VI. Section 6.4 No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by any party and therea$er waived by another party, such waiver shall be limited to the particulaz breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. ARTICLE VII. ADDITIONAL PROVISIONS Section 7.1 Conflicts of Interest; Representatives Not Individuall~Liable. No EDA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially therefrom. No member, official, or employee of the EDA shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach by the EDA or for any amount which may become due to the Developer or successor or on any obligations under the terms of this Agreement. Section 7.2 Non Discrimination. The provisions of Minnesota Statutes, Section 181.59, which relate to civil rights and non discrimination, shall be considered a part of this Agreement and binding on the Developer as though fully set forth herein. 23 Section 7.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the EDA and the City shall, upon not less than ten days prior written notice by Developer, execute, acknowledge and deliver without charge to Developer or to any person designated by Developer a statement in writing in recordable form certifying that this Agreement has been fully performed and the obligations hereunder fully satisfied. Section 7.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepaid, return receipt requested or delivered personally: (a) As to the EDA: Executive Director Eagan Economic Development Authority 3830 Pilot Knob Road Eagan, MN 55122 (b) As to the City: City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 (c) As to the Developer: Cedar Grove Properties, Inc. 500 Banks Building 615 First Avenue NE Minneapolis, MN 55413 (d) with a copy to: Jay R. Lindgren Dorsey & Whitney LLP 50 South Sixth Street, Suite 1500 Minneapolis, MN 55402 or at such other address with respect to any party as that party may, from time to time, designate in writing and forward to the others as provided in this Section 7.4. Section 7.5 Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. 24 Section 7.6 Estoppel Certificate. Each of the City, the EDA, Master Developer and any Developer agrees that upon written request of any other party, it will issue within thirty (30) days of receipt of such request to the requesting party, or its prospective mortgagee or successor, an estoppel certificate substantially in the form of Exhibit M hereto stating to the best of the issuer's knowledge as of such date. (i) whether it knows of any default under this Agreement by the requesting party and if there are known defaults, specifying the nature thereof; (ii) whether this Agreement has been assigned, modified or amended in any way by it and if so, then stating the nature thereof; and (iii) whether this Agreement is in full force and effect. Such statement shall act as a waiver of any claim by the party furnishing it to the extent such claim is based upon facts contrary to those asserted in the statement and to the extent the claim is asserted against a bona fide encumbrancer or purchaser for value without knowledge of facts to the contrary of those contained in the statement, and who has acted in reasonable reliance upon the statement. 25 IN WITNESS WHEREOF, the EDA and the City have caused this Agreement to be duly executed in their names and behalf and the Developer has caused this Agreement to be duly executed as of the day and year first above written. EAGAN ECONOMIC DEVELOPMENT AUTHORITY By President And By Executive Director CITY OF EAGAN By Mayor And By City Clerk CEDAR GROVE PROPERTIES, INC. By Its 26 STATE OF MINNESOTA ) ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this -day of , 2005, by and the President and Executive Director of the Eagan Economic Development Authority, a municipal corporation under the laws of the State of Minnesota, on behalf of the Eagan Economic Development Authority. Notary Public 27 STATE OF MINNESOTA ) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2005, by ,the of CEDAR GROVE PROPERTIES, INC., a Minnesota corporation, on behalf of the corporation. Notary Public 28 STATE OF MINNESOTA ) ss COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this - day of , 2005, by and the Mayor and City Clerk of the City of Eagan, a municipal corporation under the laws of the State of Minnesota, on behalf of the corporation. M1:1222179.13 Notary Public 29 EXHIBIT A DESCRIPTION OF PROPERTY The property is the property described and outlined as Cedar Grove Properties Development Area on the attached map, and located in the City of Eagan, Section 19, Township 27, Range 23. EXHIBIT B Development Concept and Schedule -`~: _ r.- i y ' +;_ i rOhGe,C.,,j' p~c'n ~2.dav~jK~VE. ~a~dh 2 ~ }... ;2',1 ~ rG Z ~- +.. ;, ~ - 'rte Ri~~~ss~`'+r ~~ __ .- i~ ' =? r ~ t ~ ~ ~ fi " i 7 •:~ I. Y .' ~... J i ii .F r ~ t r ~ ~ '' ` 5 ~. B-1 Form of Phase Development Schedule DATE ACTION EDA Executive Director executes Phase Supplement Determine schedule for EDA acquisition of Other Parcels Begin appraisals for Phase relocation Complete appraisals for Phase relocation Complete acquisition of Phase Property Determine Phase financing strategy for Public Improvements Open house for businesses and residents Developer submits Phase land use application to City Planning Commission reviews Phase land use application City Council reviews Phase land use application City completes Phase appraisal process for condemnation of Other Parcels Vacation notices sent, and 90-day period for tenant vacation begins Deadline for 90-day period for vacation Begin Phase site grading and installation of Public Improvements Commence construction of Phase Minimum Improvements Issuance of Phase Certificate of Completion Issuance of Tax Increment Notes B-2 EXHIBIT C SCHEDULE OF GROSS REVENUE And TOTAL DEVELOPMENT COSTS PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 GROSS REVENUE n s Town homes RYLAND 353 353 113 92 55 93 0 Flsts SR 445 445 113 110 98 72 52 18 Units RYLAND 106 108 t8 36 38 78 0 ApaRmeMS SR 68 88 0 68 0 0 0 a a s- esrdential- wnhms ,1 4, ,0 4, 0 Sales Proceeds-Residential-Plata 16,000 7,120,000 1,808,000 1,780,000 1,568,000 1,152,000 832,000 Saba Proceeds - Residential • 18 Unfta 19,000 2,052,000 342,000 884,000 884,000 342,000 0 Salsa Proceeds -Residential - ApeRmem 10,000 680,000 0 680,000 0 0 0 ote roes ales ,00 4, 2, 2, Sales Comn 7 30 263,200 7,696,000 7,896,000 45D,000 2,109,000 765.000 556,000 4,014,000 Total 33,988,000 7,798,000 9,485,000 5,547,000 8,330,000 4,846,000 Commissions 3.00000% (400,000) (91,814) (128,165) (99,065) (67,540) (15,678) Closing Costs 0.40000% (98,152) (28,024) (28,688) (16,392) (21,720) (3,328) TO OROSSREVENUE 33.489,848 7,878.362 9,312,147 5,431,543 6.240.740 4.827,058 DEVELOPMENT COSTS Administration 1.1% 525,000 190,000 120,000 135,000 70,000 10,000 A & E of construction Architecture Civil Enpineerinp TogIA6E Consutting Fear Ehlers 6 Asaodalas DSU City Engineering Relocation Conauttard Appraisals Market Study Othef Coneultinp 7oU1 ConsWtlng Foes Financing Interest Bond Issuance Costs LegalFsea Developafs Legal Lenders Legal Citys Legal Bond Counsel pOrer Legal Total Legal 100,000 50,000 20,000 10,000 10,000 10,000 400,000 150,000 75,000 75,000 50,000 50,000 2 5, 8 , ,00 , 20,000 20,000 0 0 0 0 10,000 10,000 0 0 0 0 5,000 5,000 0 0 0 0 150,000 70,000 35,000 25,000 20,000 0 100,OOD 60,000 20,000 10,000 10,000 0 15,000 15,000 0 0 0 0 10D,000 50,000 20,000 10,000 10,000 10,000 , 4 . , 123,000 123,000 0 0 0 0 2,052,800 718,500 529,700 367,000 247,300 190,100 864,082 157,580 90,935 251,821 55,939 107,787 190,000 100,000 40,000 20,000 20,000 10.000 50.000 25,000 5,000 7,500 7,500 5,000 50,000 10,000 10,000 10,000 10,000 10,000 60,000 20,000 15,000 5,000 10,000 10,000 25,000 5,000 5,000 5,000 5,000 5,000 0 4 , EnvironmentaUDue Diligence 100,000 80,000 10,000 10,000 10,000 10,000 Marketing 100,000 60,000 15,000 10,000 5,000 10,000 Survey 125,000 75,000 25,000 70,000 10,000 5,000 Miscellerreous 200,000 700,000 40,000 20,000 20,000 20,000 Property Taxes, RE OP Ex, etc. 360,000 160,000 707,500 45,000 30,000 17,500 Soft Cost Contingency 301,200 171,600 59,700 63,900 30,000 36,600 Total SoR Costs Hartl Costs Lantl Aoqubitlon Cadarvale 5,750,000 5,750,000 0 0 0 0 Phase 1 3.669,400 3,669.400 0 0 0 0 Phase 2 2,335,400 0 2,335,400 0 0 0 Phase 3 3,898,800 0 0 3,896,800 0 0 Phase 4 2,404,000 0 0 0 2,404,000 0 Phase 5 629,800 0 0 0 0 629,800 Land for parking from Ceden 1,500,000 0 1,500,000 0 0 0 Cily Land 300,000 0 750,000 150,000 0 0 Relocation 6enefrts 2.500,000 750,000 750,000 500,000 500.000 0 Acquisition COrrtinpency 881,770 220,970 238,710 227,340 145,200 31,490 Total LarM Acquiskbn 2 1 4, 2, 0 4, 4,1 ,04 , 1, Construellon Costs Slte Work 6,000,000 1,200,000 1,850,000 2,325,000 1,875,000 750,000 Demolaion 7,000,000 200,000 275,000 375,000 100,000 50,000 AsaessmeM 550,000 110,000 110,000 110,000 110,000 110,000 Park Dedication Fee 1,874,000 488,000 590,000 365,000 351,000 100,000 Trial Dedication Fee 210,300 52,700 88,200 40,800 39,500 11,100 Construction Contingency 7,110,000 190,000 280,000 370,000 240,000 80,000 Total Constnlctlon 12,744,300 2,220,700 3,771,200 3,525,800 2,715,500 1,171,700 7ota1 Hard Costs 38,881,470 12,811,070 8,145,370 8,288,810 6,784,700 1,772,380 TOTAL DEVELOPMENT COSTS 42,417,732 14,888,760 8,768,808 8,380,181 8,388,439 2,288,377 C-1 EXHIBIT C SCHEDULE OF GROSS REVENUE And TOTAL DEVELOPMENT COSTS SECT)ON 6.1 Of DevebpmeM Agreement TOTAL PHASE 1 PHASE 2 PHASES PHASE 4 PHASE 5 0. Gross Revenues 33,168,648 7,876,382 9,312,147 5,437,643 8,2A0,740 4,627,058 B. Gross Efass Costs 42,417,332 14,968,760 8,385,805 9,390,181 6,395,499 2,269,377 G. Mar1c Up 8ulNnOtan (2,350,000) (2,350,000) 0 0 0 0 D. Net Else Coals (Et-C) 40,067,332 12,808,760 9,385,805 8,380,167 8,395,438 2,289,377 EMarkUpAddltlona 2,350,000 0 0 1,775,000 1,175,000 F, Flnal Eiase Costs (DBE) 42,417,332 12,506,750 9,386,806 10.585,781 8,395,439 3,464,377 G. Gross Maabr Dsvsbper Profit (A-F) (8,927,484) (4,928,366) (73,458) (5,733A17) (154,698- 1,382,679 H. Taryat Profit (D' 72X) 4,Q08,080 7,572,610 1,128,273 1,128,819 787,453 274,725 I. Tergat Profit (f3,400,000. 12X) 8ubtnotlen (408,000) (406,000) 0 0 0 0 J, Tarpat Profit (f3,400,000. 12%) Add63ons 408,000 0 D 204,000 0 204,000 K. Total Taryst Profit Sum Of N 1 J 12.00!1 4,808,060 1,104,610 t,tffi,273 1,390,618 767,463 478,M5 L. Devslopsr Fae (f600,000) AddlOOna 600,000 0 0 250,000 0 260,000 M. Pay Ae You Go Noh Sum OF G K L (74,236,684) (4035,198) (1,799,731) (8,714,438) (922,152) 833,851 C-2 EXHIBIT D Form of Supplement SUPPLEMENT TO DEVELOPMENT AGREEMENT This SUPPLEMENT to the Development Agreement dated as of , 2005 between the Eagan Economic Development Authority, the City of Eagan and Cedar Grove Properties, Inc. describes a Phase of the Development contemplated by the Development Agreement. Phase No.: Description of Phase Property: Attached. Phase Site Plan: Attached. Phase Minimum Improvements: Assumed Market Values: Completion Date: Current Development Schedule: Attached Approval of a modification to the Targets described in Exhibit E to the Development Agreement is requested, and the reasons for such request are described, as follows: Dated: CEDAR GROVE PROPERTIES INC. By: Its: Approved: Executive Director Eagan Economic Development Authority D- I EXHIBIT E Targets 1. By December 31, 2006: $53,659,000 15,000 244 2. Added By Decembe $63,676,000 70,300 306 Minimum Assumed Market Value square feet of retail housing units, including 48 affordable housing units r 31, 2007: Minimum Assumed Market Value square feet of retail housing units, including 61 affordable housing units 3. Added By December 31, 2008: $40,980,000 Minimum Assumed Market Value 25,500 square feet of retail 189 housing units, including 37 affordable housing units 4. Added By December 31, 2009 $39,732,000 Minimum Assumed Market Value 18,600 square feet of retail 183 housing units, including 36 affordable housing units 5. Added By December 31, 2010: $16,056,000 Minimum Assumed Market Value 133,000 square feet of hotel or retail 52 housing units, including 10 affordable housing units E-1 EXHIBIT F CERTIFICATE OF COMPLETION The undersigned hereby certifies that Cedar Grove Properties, Inc. and or its successors or assigns have fully and completely complied with the obligations of the Developer under that document entitled "Development Agreement," dated , 2005 between the Eagan Economic Development Authority, the City of Eagan and Cedar Grove Properties, Inc. with respect to construction of the Phase _ Minimum Improvements in accordance with the approved Phase Site Plans and is and are released and forever discharged from its and their obligations to construct the Phase _ Minimum Improvements under such above referenced Development Agreement, and the County Recorder and Registrar of Titles for the County of Dakota and State of Minnesota are hereby authorized to record this instrument, to be a conclusive determination of the satisfactory termination of said provisions of the Development Agreement. DATED: EAGAN ECONOMIC DEVELOPMENT AUTHORITY By: Its Executive Director [Notary and Legal Description to be added so that instrument is in recordable form] F-1 EXHIBIT G-1 UNITED STATES OF AMERICA STATE OF MINNESOTA EAGAN ECONOMIC DEVELOPMENT AUTHORITY TAX INCREMENT REVENUE NOTE The Eagan Economic Development Authority (the "EDA"), Eagan, Minnesota, for value received, promises to pay, but solely from the source, to the extent and in the manner hereinafter provided, to Cedar Grove Properties, Inc. (the "Owner") the principal sum of Thousand Dollars ($_), in semi-annual installments due on each February 1 and August 1 thereafter up to and including February 1, 2029 (each being a "Scheduled Payment Date"), together with interest on the outstanding and unpaid principal balance of this Note at the rate of 6.50% per annum. Installment payments shall be applied first to interest and then to a reduction of outstanding principal. Interest on the outstanding balance of this Note shall accrue from the date hereof and shall be added to the principal amount on each February l~ and August 1 installment payment date unless paid on such date. Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at the postal address within the United States designated from time to time by the Owner. This Note is subject to prepayment on any Scheduled Payment Date at the option of the EDA, in whole or in part, upon payment to the Owner of the principal amount of the Note to be prepaid, without premium or penalty. EXCEPT AS PERMITTED BY THE DEVELOPMENT AGREEMENT, THIS NOTE IS TRANSFERABLE ONLY WITH THE CONSENT OF THE EDA AND ONLY UPON THE REGISTER OF THE EDA TREASURER, AS REGISTRAR, BY THE OWNER HEREOF OR BY ITS DULY AUTHORIZED ATTORNEY. This Note is a special and limited obligation and not a general obligation of the EDA, which has been issued by the EDA pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 469.178, subdivision 4, to aid in financing a "project", as therein defined, of the EDA consisting generally of defraying certain costs incurred and to be incurred by the EDA within and for the benefit of its Tax Increment Financing District No. 1. This Note is issued pursuant to a Development Agreement dated as of , 2005 between the EDA and the Owner (the "Development Agreement"). THIS NOTE IS NOT PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN PLEDGED TAX INCREMENT, AS DEFINED BELOW. G-1 The principal of and interest on this Note is payable solely from and only to the extent of Pledged Tax Increment received by the EDA as of each Scheduled Payment Date which has not previously been applied to payment of this Note. For purposes of this Note, the term "Pledged Tax Increment" means 90% of that portion of the tax increment actually received in the six-month period preceding a Scheduled Payment Date with respect to collections of ad valorem taxes from the real property described in a Supplement to the Development Agreement for Phase _ and referred to therein as the Phase _ Property which equals the amount which would have been received if the tax increment had been computed based on the lesser of the most recent assessor's market value of the Phase _ Property or the assessor's market value of the Phase _ Property as of the January 2 immediately following the issuance of a Certificate of Completion for Phase _. Such real property constitutes a portion of the EDA's Tax Increment Financing District No. 1. The EDA shall pay to the Owner on each Scheduled Payment Date all Available Tax Increment on that date to the extent necessary to pay principal and interest then due and any past due installment. To the extent that the EDA is unable to pay the total principal and interest due on this Note at or prior to the February 1, 2029 maturity date hereof as a result of its having received as of such date insufficient Pledged Tax Increment, such failure shall not constitute a default under this Note and the EDA shall have no further obligation hereon. This Note shall not be payable from or constitute a charge upon any funds of the EDA, and the EDA shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Pledged Tax Increment, and then only to the extent and in the manner herein specified. The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the EDA or of any other public body, and neither the EDA nor any council member, officer, employee or agent of the EDA, nor any person executing or registering this Note shall be personally liable hereon by reason of the issuance or registration hereof or otherwise. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by Iaw; and that this Note, together with ali other indebtedness of the EDA outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the EDA to exceed any constitutional or statutory limitation. G-2 IN WITNESS WHEREOF, the EDA has caused this Note to be executed by the manual signatures of the President and Executive Director of the EDA, all as of the day of EAGAN ECONOMIC DEVELOPMENT AUTHORITY President ATTEST: Executive Director (Form of Transfer) For value received, the undersigned Owner does hereby assign and transfer the foregoing Note to the named Assignee, and the undersigned Treasurer of the Eagan Economic Development Authority, as registraz, hereby certifies that the foregoing Note has been transferred and registered on the bond register in the name of such Assignee. Name of Assignee Signature of Owner Signature of Executive Director Date of Transfer on Register G-3 EXHIBIT G-2 UNITED STATES OF AMERICA STATE OF MINNESOTA EAGAN ECONOMIC DEVELOPMENT AUTHORITY CONSOLIDATED TAX INCREMENT REVENUE NOTE The Eagan Economic Development Authority (the "EDA"), Minnesota, for value received, promises to pay, but solely from the source, to the extent and in the manner hereinafter provided, to Cedar Grove Properties, Inc. (the "Owner") the principal sum of Dollars ($ ), in semi-annual installments due on each February 1 and August 1 thereafter up to and including February 1, 2029 (each being a "Scheduled Payment Date"), together with interest on the outstanding and unpaid principal balance of this Nate at the rate of 6.50% per annum. Semi-annual installment payments shall be applied first to interest and then to reduction of the outstanding principal. Interest on the outstanding balance of this Note shall accrue from the date hereof and shall be added to the principal amount on each February 1 and August 1 installment payment date unless paid on such date. Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at the postal address within the United States designated from time to time by the Owner. This Note is subject to prepayment on any Scheduled Payment Date at the option of the EDA, in whole or in part, upon payment to the Owner of the principal amount of the Note to be prepaid, without premium or penalty. EXCEPT AS PERMITTED BY THE DEVELOPMENT AGREEMENT, THIS NOTE IS TRANSFERABLE ONLY WITH THE CONSENT OF THE EDA AND ONLY UPON THE REGISTER OF THE EDA TREASURER, AS REGISTRAR, BY THE OWNER HEREOF OR BY ITS DULY AUTHORIZED ATTORNEY. This Note is a special and limited obligation and not a general obligation of the EDA, which has been issued by the EDA pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Section 469.178, subdivision 4, to aid in financing a "project", as therein defined, of the EDA consisting generally of defraying certain costs incurred and to be incurred by the EDA within and,for the benefit of its Tax Increment Financing District No. 1. This Note is issued pursuant to a Development Agreement dated as of , 2005 between the EDA and the Owner (the "Development Agreement"). THIS NOTE IS NOT PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN PLEDGED TAX INCREMENT, AS DEFINED BELOW. The principal of and interest on this Note is payable solely from and only to the extent of Pledged Tax Increment received by the EDA as of each Scheduled Payment Date which has not previously been applied to payment of this Note. For purposes of this Note, the term "Pledged Tax Increment" means 90% of that portion of the tax increment actually received G-4 in the six-month period preceding a Scheduled Payment Date with respect to collections of ad valorem taxes from the real property described in Exhibit A of the Development Agreement and referred to therein as the Property which equals the amount which would have been received if the tax increment had been computed based on the lesser of the most recent assessor's market value of the Property or the sum of the assessor's market values for each Phase of the Property as of the January 2 immediately following the issuance of a Certificate of Completion for each such Phase. Such real property constitutes a portion of the EDA's Tax Increment Financing District No. 1. The EDA shall pay to the Owner on each Scheduled Payment Date all Available Tax Increment on that date to the extent necessary to pay principal and interest then due and any past due installment. To the extent that the EDA is unable to pay the total principal and interest due on this Note at or prior to the February 1, 2029 maturity date hereof as a result of its having received as of such date insufficient Pledged Tax Increment, such failure shall not constitute a default under this Note and the EDA shall have no further obligation hereon. This Note shall not be payable from or constitute a charge upon any funds of the EDA, and the EDA shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Pledged Tax Increment, and then only to the extent and in the manner herein specified. The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the EDA or of any other public body, and neither the EDA nor any council member, officer, employee or agent of the EDA, nor any person executing or registering this Note shall be personally liable hereon by reason of the issuance or registration hereof or otherwise. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the EDA outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the EDA to exceed any constitutional or statutory limitation. IN WITNESS WHEREOF, the EDA has caused this Note to be executed by the manual signatures of the President and Executive Director of the EDA, all as of the day of EAGAN ECONOMIC DEVELOPMENT AUTHORITY ATTEST: Executive Director President G-5 (Form of Transfer) For value received, the undersigned Owner does hereby assign and transfer the foregoing Note to the named Assignee, and the undersigned Treasurer of the Eagan Economic Development Authority, as registrar, hereby certifies that the foregoing Note has been transferred and registered on the bond register in the name of such Assignee. Name of Assignee Signature of Owner Signature of Executive Director Date of Transfer on Register G-6 EXHIBIT H Units Type Single Fam. Town Homes Heritage Town Homes Carriage Town Homes Sale Price Per $46,000 Unit $46,000 Unit $46,000 Unit Urban Flats 18 Unit Urban Flats Apts Retail $16,000 Unit $19,000 Unit $10,000 Unit $30 Sq. Ft. of Bldg. Area H-1 EXHIBIT I PURCHASE AGREEMENT This Purchase Agreement ("Agreement") is made this -day of , 200, by and between the Eagan Economic Development Authority, a Minnesota municipal corporation (hereinafter "Seller") and Cedar Grove Properties, Inc., a Minnesota corporation (hereinafter "Buyer") (collectively referred to as the "Parties"). WHEREAS, Seller is the owner of certain real estate (the "Property") located in Dakota County, Minnesota and legally described as follows: WHEREAS, the Property is located within City of Eagan's Tax Increment Financing District No. 1; and WHEREAS, Buyer has entered into a Development Agreement dated , 2005 with Seller concerning the development of the Property and adjacent property; and WHEREAS, Seller is willing to sell the Property to Buyer and Buyer is willing to acquire the Property all upon the terms and conditions~contained herein. NOW, THEREFORE, in consideration of the mutual covenants and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: PURCHASE PRICE. A. Purchase Price for the Property. The purchase price for the Property shall be $ [$1 per parcel in the case of Acquired EDA Parcels.] B. Additional Purchase Expense Obligations of Buyer: In addition to the purchase price in paragraph (A), Buyer shall also reimburse Seller at the closing for any and all costs incurred by Seller in acquiring the Property, including, but not limited to, attorneys' fees, appraisal fees, closing costs, relocation benefits, fees charged by consultants and any other costs incurred by the Seller in acquiring the Property subsequent to the closing. [Not applicable to Acquired EDA Pazcels] 2. PAYMENT OF PURCHASE PRICE. The purchase price shall be paid by the Buyer in cash or certified funds on the date of closing. 3. TITLE AND REMEDIES. Buyer has been provided a copy of a Title Commitment issued by Commercial Partners for the Property and acknowledges that the Seller will have fee title to the Property subject to the following encumbrances: 4. REAL ESTATE TAXES. Real estate taxes for all years prior to the year of closing shall be Seller's responsibility. Real estate taxes due and payable in the year of closing after I-1 200_ shall be Buyer's responsibility. Buyer shall be responsible for real estate taxes in all subsequent years. Buyer shall be responsible for any deferred real estate taxes (i.e. Green Acres taxes for the property, which shall be paid at closing). 5. SPECIAL ASSESSMENTS. Buyer shall be responsible for and shall assume any pending or levied special assessments against the Property. 6. [WELL DISCLOSURE/SEPTIC SYSTEMS DISCLOSURE. Buyer is aware that there is a sealed well on the Property as disclosed in the Well Disclosure Form attached hereto as Exhibit "A." Buyer shall be responsible for any and all additional costs related to any well on the Property.] 7. CLOSING. The closing shall take place on or before , 200_ at a place designated by Seller in Dakota County, time being of the essence, or other location mutually agreed to. 8. OBLIGATION OF PARTIES AT CLOSING. At the closing between Buyer and Seller with respect to the Property: a. Seller shall: i. Execute and deliver a Quit Claim Deed conveying marketable fee title to the Buyer subject to easements, covenants and restrictions of record, including the following: (the "Permitted Exceptions"); Buyer acknowledges that the Repurchase Agreement must be recorded prior to any mortgage that Buyer takes against the Property and further that such mortgage must contain a clause that permits the Seller to acquire the Property at the price stated in the Purchase Agreement free and clear of any mortgage encumbrance. v. Execute and deliver the Repurchase Agreement in the form and text of Exhibit "B;" and vi. Execute and deliver such other documents as may be reasonably required by Buyer to effectuate the sale and transfer of the Property. b. Buyer shall: i. Make the necessary payments required under paragraph 2 of this Agreement; ii. Pay all recording fees and charges relating to the filing of the Quit Claim Deed; I-2 iii. Pay the title insurance premiums and the closing fee chazged by the title company, if any; iv. Pay the state deed tax; v. Pay all costs relating to the updating of the Abstract of Title and the issuance of any Title Commitment or endorsements thereof; vi. Execute and deliver to Seller the Repurchase Agreement in the form and text of Exhibit "B;" vii. Provide a letter of credit or cash as required by paragraph 10 of this Agreement in the principal amount of $ ; 9. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER. Seller makes no representations or warranties concerning the condition of the Property. Buyer has undertaken all necessary due diligence, including any and all environmental tests Buyer deems reasonably necessary to satisfy itself as to the physical condition of the property. Buyer is purchasing the Property "As-Is" with all faults. 10. LETTER OF CREDIT. The Buyer acknowledges that the Seller acquired the Property from the former owner under a threat of condemnation. As such, Seller may be responsible for providing appropriate relocation benefits to the displaced tenants. Buyer has agreed to reimburse Seller for any and all relocation costs that Seller will pay to the displaced tenants as well as all costs incurred by Seller's consultants and attorneys to facilitate payment of the appropriate relocation benefits. To this end, Buyer shall provide Seller at the closing with an irrevocable letter of credit, in the form acceptable to Seller's attorney, in the principal amount of $ ,which letter shall serve as security for Buyer's reimbursement obligations. To the extent Buyer fails to reimburse the Seller for the relocation benefits paid to the displaced tenants, Seller may draw on the letter of credit for such reimbursement. Buyer may, as an alternative, provide the Seller with a cash deposit of $ 11. NOTICES. All notices and demands given or required to be given by any party hereto to any other party shall be deemed to have been properly given if and when delivered in person, the next business day after being sent by reputable overnight commercial courier (e.g. U.P.S or Federal Express) or sent by facsimile (with verification of receipt) or three (3) business days after having been deposited in any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows (or sent to such other address as any party shall specify to the other party pursuant to the provisions of this Section): To the Seller: Cedar Crrove Properties, Inc. Attn: Brad Schafer 500 Banks Building 615 First Avenue North Minneapolis, MN 55413 I-3 With a Copy to: Jay R. Lindgren Dorsey & Whitney LLP 50 South 6~' Street Minneapolis, MN 55402 To the Buyer: Eagan Economic Development Authority Attn: Jon Hohenstein, Community Development Director 3830 Pilot Knob Road Eagan, MN 55122 With a Copy to: Robert B. Bauer, City Attorney Severson, Sheldon, Dougherty & Molenda, P.A. 7300 West 147' Street, Suite 600 Apple Valley, Minnesota 55124 12. HEADINGS. The headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of such section or paragraph. 13. GOVERNING LAW. This Agreement shall be deemed to be a contract under the State of Minnesota and for all purposes shall be construed and enforced in accordance with the laws of such state. 14. HEIRS, SUCCESSORS AND ASSIGNS. The terms, conditions and covenants shall extend to, be binding upon, and inure to the benefit of the respective heirs, successors and assigns of the parties hereto. 15. DEFAULT. a. Seller's Remedies. If Buyer shall fail to consummate this Agreement for any reason, Seller may enforce specific performance of this Agreement or may terminate this Agreement and the Earnest Money refunded to Buyer. b. Buyer's Remedies. If Seller shall fail to consummate this Agreement for any reason, Buyer may seek specific performance of the Agreement. 16. COMMISSION. Seller represents to Buyer that Seller has not engaged, and Buyer represents to Seller that Buyer has not engaged, any broker or agent in connection with the entering into of this Agreement, the sale or purchase of the Property, or the consummation of the transactions contemplated herein. IN WITNESS WHEREOF the parties have executed this Agreement this day of 2005. I-4 BUYER: CEDAR GROVE PROPERTIES, INC. By Its SELLER: EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal corporation By: Its: President By: Its: Executive Director I-5 EXHIBIT "B" REPURCHASE AGREEMENT This Agreement is made and entered into this day of , 2004, by and between the Eagan Economic Development Authority, a Minnesota municipal corporation (the "EDA"), and Cedaz Grove Properties, Inc., a Minnesota corporation (hereinafter "Developer"). WHEREAS, the EDA and Developer have entered into a Purchase Agreement, dated as of , 200_ (the "Contract") relating to the sale and purchase of a certain tract or parcel of land situated in Dakota County, Minnesota, described as follows: (the "Property"); and WHEREAS, contemporaneously herewith the EDA has conveyed to Developer the Property. NOW, THEREFORE, in further consideration of this conveyance and in furtherance of the understanding between the parties, Developer hereby grants to the EDA the following option to repurchase the Property; Section 1. REPURCHASE: If (a) Developer has not entered into a bona fide contract with a reputable builder for the construction of the Phase _ Minimum Improvements (as defined in that certain Supplement dated (the "Supplement") to the Development Agreement dated , 2005) on the Phase _ Property (as defined in the Supplement) and (b) such builder has not commenced construction thereof within the later of (i) three years from the date of this Agreement, or (ii) two yeazs after the last of the tenants leave, then the EDA may at its option repurchase the Property for a purchase price of $ [not less than Developer's acquisition costs plus direct out-of-pocket costs] less the amount of any liens on the Property resulting from action by the Developer. The EDA may exercise this option to repurchase by giving written notice to Developer within thirty (30) days of the expiration of the period specified above. Upon receiving the repurchase price in cash from the EDA (which amount must be paid within thirty (30) days after the notice of option exercise is given), Developer shall convey to the EDA by limited warranty deed the Property free and cleaz of any encumbrances placed or suffered thereon by Developer. Section 2. RELEASE: If written notice of option exercise is not timely given to Developer or if Developer enters into the required contract and begins construction within the required period, this option to repurchase shall terminate absolutely and the EDA shall upon Developer request, execute and deliver to Developer a release of this repurchase right in recordable form. I-7 Section 3. NOTICE: All notices, demands and requests required or permitted to be given under this Agreement must be in writing and shall be deemed to have been properly given or served either by personal delivery or by depositing the same in the United States Mail, addressed to the EDA or to Developer, as the case may be, prepaid and registered or certified mail, return receipt requested, at the following addresses: To the Seller: To the Buyer: Eagan Economic Development Authority Attn: Jon Hohenstein, Community Development Director 3830 Pilot Knob Road Eagan, MN 55122 Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice, demand or request. Either party shall have the right from time to time and at any time upon at least ten (10) days' written notice thereof, to change their respective addresses and each shall have the right to specify as its address any other address within the United States of America. Section 4. MISCELLANEOUS. The provisions of this Agreement are intended in each instance to be binding upon and inure to the benefit of the signatories hereto, to the successors and assigns of Developer who become owners of the Property and to the successors and assigns of the EDA to whom the right, title and interest herein is specifically assigned. Either party may record this instrument in the appropriate real estate records. IN WITNESS WHEREOF, the parties have caused this instrument to be executed as of the day and year first above written. DEVELOPER CEDAR GROVE PROPERTIES, INC. By Its STATE OF MINNESOTA ) ss. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me, a notary pubic, this day of , 200_, by ,the of CEDAR GROVE PROPERTIES, INC., a Minnesota corporation, on behalf of the corporation. I-$ Notary Public EDA EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal corporation By: Its: President By: Its: Executive Director STATE OF MINNESOTA ) ss. COUNTY OF EAGAN ) The foregoing instrument was acknowledged before me, a notary public, this day of , 200_, by Pat Geagan and Thomas L. Hedges, the President and Executive Director of Eagan Economic Development Authority, a Minnesota municipal corporation, on behalf of the municipal corporation. Notary Public THIS INSTRUMENT WAS DRAFTED BY: SEVERSON, SHELDON, DOUGHERTY & MOLENDA, P.A. 7300 West 147th Street, Suite 600 Apple Valley, MN 55124 (952) 432-3136 (RBB: 206-20390) I-9 EXHIBIT J LEGAL DESCRIPTION OF ACQUIRED EDA PARCELS (A) Lot 1, Block 1, Cedar Grove Parkway; (B) That part of the NE'/+ of Section 19, Township 27, Range 23, described as follows: Commencing at the SW corner of said NE1/4; thence North along the West line of said NE 1 /4 a distance of 198.82 feet; thence East 33 feet to the Easterly right of way line of Cedar Avenue; thence North 47 degrees East a distance of 270 feet; thence North 18 degrees 13 minutes East a distance of 159.4 feet; thence North 40 degrees 55 minutes West a distance of 75.0 feet to a point on a line parallel with and 60 feet southeasterly of the southeasterly right of way line of State Highway No. 13; thence North 49 degrees OS minutes East parallel with said southeasterly right of way line 358.8 feet; thence South 40 degrees 55 minutes East a distance of 190.0 feet to the actual point of beginning; thence South 49 degrees OS minutes West parallel with said southeasterly right of way line 158.8 feet; thence South 40 degrees 55 minutes East a distance of 129.71 feet to a line parallel with and 50 feet northwesterly of the northwesterly right of way line of Beau-De-Rue Drive; thence North 56 degrees 41 minutes East parallel with said Northwesterly right of way line 160.21 feet to a line, bearing south 40 degrees 55 minutes East from the point of beginning; thence North 40.35 minutes West a distance of 150.9 feet to the point of beginning. (C) That part of the Northeast Quarter (NE '/o) of Section nineteen (19), Township twenty- seven (27), Range twenty-three (23), Dakota County, Minnesota, described as follows: Commencing at the Southwest corner of said Northeast Quarter (NE '/.); thence North, assumed bearing, along the west line of said Northeast Quarter (NE '/4) a distance of 198.82 feet; thence East 33 feet to the easterly right of way line of Cedar Avenue; thence N 47 degrees 00 minutes E a distance of 270.00 feet; thence N 18 degrees 13 minutes E a distance of 159.4 feet; thence S 40 degrees 55 minutes E a distance of 75.0 feet to the actual point of beginning. Said last described line to be hereinafter referred to as Line "A"; thence S 49 degrees OS minutes W. parallel with the southeasterly right of way line of State Highway No. 13 a distance of 20.0 feet; thence S 40 degrees 55 minutes E a distance of 140.35 feet to a line parallel with and 50 feet northwesterly of the northwesterly right of way line of Beau-De-Rue Drive; thence N 56 degrees 41 minutes E parallel with said northwesterly right of way line 221.95 feet more or less to a line 200.0 feet northeasterly of, measured at right angles to and parallel with said Line "A"; thence N 40 degrees 55 degrees W parallel with said line "A", 129.71 feet to a line parallel with and 250 feet southeasterly of the southeasterly right of way line of State Highway No. 13; thence S 49 degrees OS minutes W parallel with said southeasterly right of way line 100.0 feet; thence N 40 degrees 55 minutes W J-1 parallel with said Line "A" a distance of 40.0 feet to its intersection with a line bearing N 49 degrees OS minutes E from the point of beginning; thence S 49 degrees OS minutes W a distance of 100.0 feet to the point of beginning. J-2 EXHIBIT K DESCRIPTION OF OTHER PARCELS The property depicted in Exhibit A, except the property described in Exhibit J. K- I EXHIBIT L DEPICTION OF TRANSIT STATION PROPERTY Lot 1: Lot 2, Block 1 Cedarvale 2"d Addition Tax PIN-10-16901-020-01 Address-3830 Sibley Memorial Hwy Lot 2: Outlot A, Cedarvale 2"d Addition Tax PIN-10-16901-010-00 EXHIBIT M ESTOPPEL CERTIFICATE THE EAGAN ECONOMIC DEVELOPMENT AUTHORITY (the "EDA") hereby certifies to ("[Party)") and its successors and assigns, as follows: 1. Unless the context otherwise indicates, capitalized terms not otherwise defined herein shall have the definitions given such terms in that Development Agreement (the "Development Agreement") dated , by and among the EDA, the City of Eagan ("City") and Cedar Grove Properties, Inc. ("Developer"). 2. The Development Agreement has not been amended or modified in any respect and represents the entire agreement of the parties thereto as to all of the subject matters dealt with therein. The Development Agreement is in full force and effect, and the EDA has given no notice of any default thereunder. Developer has represented to the EDA that it has performed all of its obligations under the Development Agreement with respect to the Development which are required to be performed as of the date hereof. To the EDA's knowledge, Developer is not in default in the performance or observance of any of its covenants or agreements under the Development Agreement or pursuant to any other agreement with City or the EDA as of the date hereof. 3. The EDA agrees to give a copy of each notice or demand to Developer with respect to any breach or default by the Developer in its obligations under the Development Agreement to [Party] at the same time of such notice, demand or other communication is given to the Developer under the Development Agreement, addressed as follows: Attention: 4. The EDA agrees to permit the cure by [Party] of any default by Developer under the Development Agreement, but acknowledges [Party] shall be under no obligation to cure any such default. 5. Although the Mortgages may indicate that the Development Agreement is a Permitted Encumbrance, the EDA acknowledges that neither Bank nor its successors or assigns, including without limitation, any successor or assignor which succeeds to the ownership of any portion of the Property by foreclosure of the Mortgages or acceptance of a deed in lieu of foreclosure and any successor or assignee thereof, shall have any liability for the performance or observance of any of Developer's obligations under the Development Agreement, other than those obligations related to construction of Phase _ Developer Improvements in order to receive reimbursement of Available Tax Increment as specified under the Development Agreement. M-1 6. The EDA acknowledges and agrees that: (a) Developer has paid to the EDA all payments of any nature whatsoever which are required to be paid prior to the date hereof pursuant to the Development Agreement. (b) The EDA has approved the Development Plans for 8. The intention of the EDA in delivering this Certificate is to clarify the application of the Development Agreement to and not to amend the Development Agreement. Dated this _ day of , 200_, THE EAGAN ECONOMIC DEVELOPMENT AUTHORITY By Its M-2