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03/06/2006 - City Council RegularAGENDA EAGAN CITY COUNCIL -REGULAR MEETING EAGAN MUNICIPAL CENTER BUILDING March 6, 2006 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 IV. CONSENT AGENDA .1.A. APPROVE MINUTES B. PERSONNEL ITEMS C. APPROVE CHECK REGISTERS ~ p D. APPROVE Eagan Fire Department Relief Association Bylaws ~I E. APPROVE Tree Contractor License for Aspenwall Tree Service, Inc. ~~~ F. APPROVE Premise Permit Renewal for Knights of Columbus to conduct Pull-Tab operations at Coopers Restaurant, 4185 Robert Trai] Iy~G. RECEIVE Petition and Order Public Hearing (Apri14, 2006) for Easement Vacation, Lots 1 & 2, Block 1, Oakview Center n rg H. APPROVE Agreement with Dakota County for the Construction of Project 918, Pilot Knob Road and Lone Oak //~ Road Upgrade ~g I. APPROVE Parks and Recreation Fees and Charges Policy Z J. APPROVE Parks and Recreation Public Art and Memorials Policy a K. APPROVE the Annual Maintenance Shutdown for the Eagan Community Center ~ L. APPROVE Revised Park Classifications as drafted by the Advisory Parks Commission M. APPROVE Resolution of Support for the Outdoor Recreation Grant Application for Thresher Fields improvement 3~N. AUTHORIZE Advertisement for Request for Proposals for Concession Products to be Sold in the Various Concessions Operations Operated by Eagan Parks and Recreation. I O. APPROVE Liquor License and Tobacco License for K & J Liquors, 4182 Pilot Knob Road V. PUBLIC HEARINGS ~~~A. EASEMENT VACATION -Lot 2, Block 1, Cliff Lake Centre 3'~ Addition Final Planned Development -Cliff Lake Centre 3`d Addition - A Final Planned Development of amulti-tenant, single story retail center located at 1965 Cliff Lake Road in the SW %4 of Section 29 VI. OLD BUSINESS ~I1s A. APPROVE Agreement with CSM Properties and Authorize Preparation of Plans and Specifications for the ''TT Construction of Project 937 (Lone Oak Parkway -Trail Improvements) VII. NEW BUSINESS j~ (~ ~ A. PRELIMINARY SUBDIVISION -Gustafson Addition - A Preliminary Subdivision of 2.38 Acres to create 2 V/~/ 1 single family lots located at 543 Red Pine Lane in the NE '/< of Section 36. P / ~ B. ORDINANCE AMENDMENT -City Code Chapter 10.12 pertaining to the licensing for keeping carrier pigeons (p within the City VIII. LEGISLATIVE/INTERGOVERNMENTAL AFFAIRS UPDATE ~f ~O A. Diffley Marketplace -Access Update IX. ECONOMIC DEVELOPMENT AUTHORITY 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 ~SC. APPROVE MINUTES D. OLD BUSINESS U~ 1. NORTHEAST EAGAN REDEVELOPMENT DISTRICT -Adopt Findings of Fact, Conclusions and V Resolution to Approve the Development Agreement between the City and MG (McGough) Eagan for the Redevelopment of the Area Bounded by 35E, 494 and Blue Gentian Road. E. NEW BUSINESS 1 1. CEDAR GROVE REDEVELOPMENT DISTRICT -Public Hearing to Consider the Use of Eminent 3~S Domain to Acquire the Cedarvale Mall at the Request of its Owner, Cedar Grove Properties, as Outlined in the Cedar Grove Redevelopment TIF Development Agreement between the City and Schafer Richardson (To be continued to March 21, 2006). F. OTHER BUSINESS X. ADMINISTRATIVE AGENDA 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. City of Eagan Demo To: HONORABLE MAYOR & COUNCILMEMBERS From: CITY ADMINISTRATOR HEDGES Date: MARCH 3, 2006 Subject: AGENDA INFORMATION FOR MARCH 6, 2006 CITY COUNCIL MTG ADOPT AGENDA After approval is given to the March 6, 2006 City Council agenda, the following items are in order for consideration. Agenda Information Memo March 6, 2006 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 February 21, 2006 regular City Council meeting as presented or modified. ATTACHMENTS: • Minutes of the February 21, 2006 regular City Council meeting are enclosed on pages through 2. MINUTES OF A REGULAR MEETING OF THE ~~ EAGAN CITY COUNCIL ~ ~~ Eagan, Minnesota February 21, 2006 A regular meeting of the Eagan City Council was held on February 21, 2006 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 Councilmember Tilley moved, Councilmember Fields seconded a motion to approve the agenda as presented. Aye: S Nay: O RECOGNITIONS AND PRESENTATIONS SWEARING IN OF NEW POLICE OFFICERS Chief of Police Therkelsen introduced new Police Officers Jeffrey Thul and Andrew Rapaway. Mayor Geagan administered the Oath of Office to the new Officers. CONSENT AGENDA Councilmember Maguire moved, Councilmember Tilley seconded a motion to approve the consent agenda. Aye: S Nay: O A. Minutes. It was recommended to approve the minutes of the February 7, 2006 regular City Council meeting as presented. B. Personnel Items. None C. Check Registers. It was recommended to ratify the check registers dated February 9, 2006 and February 16, 2006 as presented. D. Liquor License. It was recommended to approve a change in management on the off-sale 3.2 percent malt liquor license for Kwik Trip located at 3145 Dodd Road. E. Amusement Device License. It was recommended to approve an Amusement Device License for Lawrence Brennan. F. Consumption and Display Permit. It was recommended to approve the renewal of a Consumption and Display (Set Up) Permit application for Parkview Golf Course located at 1310 Cliff Road. G. General Fund Balance Policy. It was recommended to approve the General Fund Balance Policy and to authorize the transfer of $1,575,000 to the Benefit Accrual Fund to provide funding toward the City's Post Retirement Health Insurance liability. H. Motor Vehicle Sales Tax Dedication. It was recommended to approve a Resolution of Support for the proposed Constitutional Amendment for the dedication of the Motor Vehicle Sales Tax and authorize the Mayor and City Clerk to execute all related documents. I. Denmark Avenue - No Parking. It was recommended to approve a resolution to prohibit parking on the west side of Denmark Avenue between Wescott Road and Crestridge Lane, and authorize the Mayor and Deputy City Clerk to execute all related documents. J. Proiect 874. It was recommended to receive the Final Assessment Roll for Parcels 10-03800-070-02 and 10-01200-060-02 as part of Project 874 (Trunk Highway 55 North Frontage Road /Gift of Mary -Street and Utility Improvements) and schedule a public hearing to be held on March 21.2006. K. Special City Council Meeting, It was recommended to reschedule the Special City Council meeting scheduled for March 14, 2006 to March 28, 2006. L. City Council Retreat. It was recommended to schedule a City Council Retreat on March 14, 2006. M. Liquor License. It was recommended to approve the off-sale liquor license for Amber Liquor, Inc., 4250 Lexington Avenue South, Suite 111. N. Tobacco License. It was recommended to approve a Tobacco License for Amber Liquor, Inc., 4250 Lexington Avenue South, Suite 111. Eagan City Council Meeting Minutes February 21, 2006 Page 2 PUBLIC HEARINGS PROJECT 928, MEADOWVIEW ROAD /ALEXANDER ROAD STREET UPGRADE /REVITALIZATION CRAFT City Administrator Hedges introduced this item regarding street upgrade /surface rehabilitation for Meadowview Road and Alexander Road. Assistant City Engineer Gorder gave a staff report. Mayor Geagan opened the public hearing. Wayne Goldsworthy spoke in opposition to the proposed improvement. He also noted that the mailed notice to the property owners indicated that the public hearing would be held at 7:30 p.m. There being no further comment, Mayor Geagan closed the public hearing and turned discussion back to the Council. Motion was made by Maguire, seconded by Tilley to table action on this item to allow staff to confirm the noticed time of the public hearing. Aye: 5 Nay: 0 Staff confirmed that the time of the public hearing had been noticed at 6:30 p.m. Councilmember Maguire moved, Councihember Tilley seconded a motion to approve Project 928 (Meadowview Road /Alexander Road -Street Upgrade/Surface Rehabilitation). Aye: 5 Nay: 0 Councilmember Maguire moved, Councilmember Tilley seconded a motion to approve the plans and specifications for contract 06-02 (Citywide Street Improvements including Project 928 and authorize the advertisement for a bid opening to be held at 10:30 a.m. on Thursday, March 30, 2006. Aye: 5 Nay: 0 PROJECT 930, SILVER BELL ROAD STREET REVITALIZATION City Administrator Hedges introduced this item regarding street rehabilitation for Silver Bell Road. Public Works Director Colbert gave a staff report. Mayor Geagan opened the public hearing. Linda Wyland, 1903 Silverbell Road questioned the location of the proposed project. There being no further public comment, Mayor Geagan closed the public hearing and turned discussion back to the Council. Councilmember Fields moved, Councilmember Tilley seconded a motion to approve Project 930 (Silver Bell Road - Street Rehabilitation). Aye: 5 Nay: 0 Councihember Fields moved, Councilmember Carlson seconded a motion to approve the plans and specifications for Contract OS-03 (Citywide Street Improvements including Project 930) and authorize the advertisement for a bid opening to be held at 10:30 a.m. on Thursday, March 23, 2006. Aye: 5 Nay: 0 DIFFLEY MARKETPLACE - CII2CULATION AND ACCESS City Administrator Hedges introduced this item regarding Dakota County's denial of Diffley Marketplace Circulation and Access Appeal . Public Works Director Colbert provided detailed information regarding the County's denial of the proposed circulation and access plan and outlined the County's conditions for future consideration. Councilmember Fields discussed the possibility of a roundabout as an alternative solution to the access issue. Staff indicated that it was unlikely that Dakota County would consider such an alternative. Eagan City Council Meeting Minutes h February 21, 2006 ~/q Page 3 John Trautz, Diffley Ventures presented a revised access configuration proposal. Three residents spoke expressing their opinions of the proposed access configuration. A discussion was held regarding sidewalks and trails. Councilmember Carlson moved, Councilmember Fields seconded a motion to direct staff to make an application to Dakota County for a variance for a'/4 access median break maintaining an entry only on Daniel Drive. Aye: 5 Nay: 0 Councilmember Carlson moved, Councihnember Fields seconded a motion to duect staff to get a specific answer from Dakota County why a roundabout would not work at the Diffley Marketplace site. Aye: 2 Nay: 3 (Mayor Geagan, Councilmembers Tilley and Maguire opposed) ORDINANCE AMENDMENT -CITY OF EAGAN City Administrator Hedges introduced this item regarding an Ordinance Amendment to Chapter 11, Subdivision l 1, Section 11.60 of the City Code regarding the requirement for a Conditional Use Permit for neighborhood business buildings larger than 25,000 square feet. City Planner Ridley explained that the Council approved the amendment on February 7, 2006, however, lacked specific conditions that would need to be considered when a conditional use permit request is made. He then reviewed revised amendment language for consideration. Councilmember Carlson moved, Councilmember Fields seconded a motion to approve an Ordinance amending Chapter 11, Subdivision 11, Section 11.60 of the City Code and duect the City Attorney to prepare and publish the amendment in the legal newspaper. Aye: 5 Nay: 0 NEW BUSINESS CARRIER /HOMING PIGEON LICENSE FOR DARN DAO City Administrator Hedges introduced this item regarding a request for a license for carrier /homing /racing pigeons for Dahn Dao at 3880 Princeton Trail. Director of Administrative Services Van Overbeke gave a staff report, explaining there have been complaints from neighboring property owners regarding the birds being on their property. He further explained that staff has been unable to verify that proper registrations and banding are on the pigeons. Lawrence Rueter, 3886 Princeton Trail expressed his opposition to the proposed license Councilmembers discussed the situation and it was the consensus of the Council to deny the request for a pigeon license and to fizrther review the section of the City Code that pertains to the housing of pigeons. Councilmember Maguire moved, Councilmember Tilley seconded a motion to deny a license for carrier /homing /racing pigeons for Dahn Dao at 3880 Princeton Trail with removal of the pigeons from the property within 60 days. Aye: 5 Nay: 0 Councilmember Maguire moved, Councilmember Tilley seconded a motion to direct staff to draft an ordinance amendment to Section 10.12 of the City Code. Aye: 5 Nay: 0 PRELIMINARY SUBDIVISION AND PLANNED DEVELOPMENT AMENDMENT (YANKEE SQUARE) MFC PROPERTIES City Adnnistrator Hedges introduced this item regarding a Preliminary Subdivision of 4.99 acres to create 3 lots located at 3460 and 3470 Washington Drive. City Planner Ridley gave a staff report. Bruce Miller, MFC Properties, discussed the proposed subdivision and stated he is opposed the water quality charge. S Eagan City Council Meeting Minutes February 21, 2006 Page 4 ®RAFT Councilmember Maguire moved, Councilmember Fields seconded a motion to approve a Preliminary Subdivision (Yankee Square) of 4.99 acres to create 3 lots located at 3460 and 3470 Washington Drive, in the NE '/4 of Section 16, subject to the following conditions: Aye: 5 Nay: 0 1. The developer shall comply with these standards conditions of plat approval a adopted by Council on February 2, 1993: Al; B1, 2, 3, 4, C!, 2, 3, E1 and D1, 2. The property shall be platted. 3. This development shall dedicate 10 feet of additional right-of--way along the entire length of the plat adjacent to Federal Drive. 4. A cash dedication in lieu of on-site water quality ponding is required for this development. 5. The applicant shall provide a private ingress/egress easement agreement in a form acceptable to the City Attorney. Councilmember Maguire moved, Councilmember Tilley seconded a motion to approve a Planned Development Amendment to allow an additional office building for Lot 1, Block 1, Yankee Square in the NE '/< of Section 16, subject to the following conditions: Aye: 5 Nay: 0 1. The Planned Development Agreement shall be recorded with Dakota County. 2. All exterior trash enclosures shall be attached to the building and constructed with the same materials and colors as the principal building. 3. All signage is subject to the City Sign Ordinance. 4. The developer shall provide green space calculations with and without proof of parking being constructed. 5. If the proof of parking area is constructed, 30% green space must be maintained. ORGANIZATIONAL BUSINESS APPOINTMENT OF REPRESENTATIVE TO EAGAN CONVENTION AND VISITORS BUREAU City Administrator Hedges explained that two appointments to the Eagan Convention and Visitors Bureau need to be made, one a voting member responsible for attending regular board meetings and the second voting member designated as an official City liaison to the ECVB Executive Committee with specific duties as outlined in the agreement for services between the City and the ECVB. Councilmember Maguire moved, Councilmember Tilley seconded a motion that Councilmember Carlson and Communications Director Garrison be appointed as members to the ECVB and Director Garrison be appointed as the official City liaison to the ECVB Executive Committee. Aye: 5 Nay: 0 APPOINTMENT OF REPRESENTATIVES TO THE BOARD OF TRUSTEES FOR THE FIRE RELIEF ASSOCIATION City Administrator Hedges explained that three representatives to the Board of Trustees for the Fire Relief Association need to be appointed. Councihnember Carlson moved, Councilmember Tilley seconded a motion to appoint Mayor Geagan, Gene VanOverbeke and the Fire Chief to the Board of Trustees for the Fire Relief Association. LEGISLATIVE /INTERGOVERNMENTAL AFFAIRS UPDATE SUBMISSION OF COMMENTS REGARDING MUNICIPAL ASSOCIATION LEGISLATIVE POLICIES REGARDING REDEVELOPMENT DISTRICTS City Administrator Hedges discussed proposed comments to State Legislators regarding redevelopment districts. Eagan City Council Meeting Minutes February 21, 2006 Page 5 ~RAF~- Councilmember Carlson moved, Councilmember Tilley seconded a motion to authorize submission of comments requesting that any changes in the state eminent domain law preserve the authority of cities to complete redevelopment and renewal projects under existing eminent domain standards if such districts are certified prior to the effective date of the changes and their development plans contemplated the possible use of eminent domain prior to that date and, further, that such authority be preserved if such districts need to be recertified to complete the improvements and activities and anticipated in their development plans. Aye: 5 Nay: 0 The regular City Council meeting was recessed at 8:45 p.m. and a meeting of the Economic Development Authority was immediately convened. The regular City Council meeting was reconvened at 9:30 p.m. ADMINISTRATIVE AGENDA There were no items. 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 meeting at 9:30 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). 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. Agenda Information Memo March 6, 2006 Eagan City Council Meeting B. PERSONNEL ITEMS Item 1. Clerical Tech IIUCommunity Development- ACTION TO BE CONSIDERED: To approve the hiring of Connie Edwards as afull-time Clerical Tech III in the Community Development Department. Item 2. Clerical Tech IUAdministrative Services- ACTION TO BE CONSIDERED: To approve the hiring of Janet Bolger as afull-time Clerical Tech II in Administrative Services. Agenda Information Memo March 6, 2006 Eagan City Council Meeting C. RATIFY CHECK REGISTERS ACTION TO BE CONSIDERED: To ratify the check registers dated February 23, 2006 and March 2, 2006 as presented. ATTACHMENTS: Check registers dated February 23, 2006 and March 2, 2006 are enclosed without page number. 9 Agenda Information Memo March 6, 2006 Eagan City Council Meeting D. APPROVE EAGAN FIRE DEPARTMENT RELIEF ASSOCIATION BYLAWS ACTION TO BE CONSIDERED: To approve the Eagan Firefighters Relief Association Bylaws Subject to City Administrator and City Attorney Satisfaction FACTS: • The Eagan Firefighters Relief Association has spent a considerable amount of time working on revisions to their bylaws and has presented the draft to the City for City Council approval. The work has been undertaken in consultation with the firm, "Minnesota Firefighter Pension Consultants" that is working with associations across the State to standardize bylaws and to provide specialized assistance as bylaws are written and changed. The draft Eagan Firefighters Relief Association Bylaws changes include a clear definition of members who can accrue active service. This change in effect does not allow the full-time chief to accrue active service in the Relief Association per the previous understanding between the City and the Fire Department. A second change is to make the bylaws consistent with the new State law regarding City representation on the Board of Trustees. There are a number of other smaller changes that clean up and clarify the bylaws as they relate to operations and current practice. • The general membership of the Relief Association has approved the bylaw changes per existing requirements. The City Attorney has reviewed the draft bylaws and has recommended changes to a couple of the sections; consequently staff is asking that the draft be approved subject to City Attorney and City Administrator satisfaction regarding the final form of the Articles of Incorporation and Bylaws. Those suggested changes are being reviewed by the Relief Association representatives and City staff. ATTACHMENTS: • Enclosed without page number is a copy of the draft Restated Articles of Incorporation and Bylaws of the Eagan Firefighters Relief Association. • Enclosed without page number is a copy of the power point presentation used to present changes to the general Relief Association membership explaining the work of the consulting firm and the proposed changes to the bylaws. ld Agenda Memo March 6, 2006 Regular City Council Meeting CONSENT AGENDA E. Tree Contractor License for Aspenwall Tree Service ACTION TO BE CONSIDERED: Approve Tree Contactor License for Aspenwall Tree Service, 9011 Portland Avenue S., Bloomington, MN FACTS: Brent Aspenwall has applied for a tree contractor license. All fees have been made and requirements of the application met. Staff deems the application in order for approval. ATTACHMENTS: None // Agenda Memo March 6, 2006 Regular City Council Meeting CONSENT AGENDA F. Premise Permit Renewals for Knights of Columbus ACTION TO BE CONSIDERED: Adopt Resolutions Approving Premise Permit Renewals for Knights of Columbus Counci17604 to conduct pulltab operations at Coopers Restaurant, 4185 S. Robert Trail, and Starks Saloon, 3125 Dodd Road. FACTS: ~ The Knights of Columbus have applied for renewal of their pull tab operations with the Minnesota Gambling Control Division • The Knights of Columbus have operated pull tab operations at Coopers Restaurant and Starks Saloon since June of 2000 with no reported problems. • All requirements of the application have been met ~ Staff deems the renewals in order for approval ATTACHMENTS: A copy of the resolutions is attached as pages ~ and /.Z RESOLUTION CITY OF EAGAN PREMISE PERMIT RENEWAL FOR KNIGHTS OF COLUMBUS COUNCIL 7604 ON STARKS SALOON PREMISES WHEREAS, the Knights of Columbus Council 7604 conducts a pull tab operation at Starks Saloon, 3125 Dodd Road and WHEREAS, the Eagan Police Department has reviewed the renewal application and has not identified any reason to deny; and WHEREAS, the Knights of Columbus held a gambling premise permit at the above location since June 1, 2000, with no reported problems; NOW, THEREFORE, BE IT RESOLVED that the City Council of Eagan, Dakota County, Minnesota, hereby approves the Knights of Columbus premise permit renewal application at Starks Saloon, 3125 Dodd Road. Motion by: Seconded by: Those in Favor: Those Against: Dated: March 6, 2006 CITY OF EAGAN CITY COUNCIL By: Its Mayor Attest: Its Deputy Clerk CERTIFICATION I, Mira Pepper, Deputy 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 of the City of Eagan, Dakota County, Minnesota, in a regular meeting thereof assembled this 6th day of March, 2006. Mira Pepper, Deputy City Clerk /.3 RESOLUTION CITY OF EAGAN PREMISE PERMIT RENEWAL FOR KNIGHTS OF COLUMBUS COUNCIL 7604 ON COOPERS RESTAURANT PREMISES WHEREAS, the Knights of Columbus Council 7604 conducts a pull tab operation at Coopers Restaurant, 4185 S. Robert Trail and WHEREAS, the Eagan Police Department has reviewed the renewal application and has not identified any reason to deny; and WHEREAS, the Knights of Columbus held a gambling premise permit at the above location since June 1, 2000, with no reported problems; NOW, THEREFORE, BE IT RESOLVED that the City Council of Eagan, Dakota County, Minnesota, hereby approves the Knights of Columbus premise permit renewal application at Coopers Restaurant, 4185 S. Robert Trail. Motion by: Seconded by: Those in Favor: Those Against: Dated: March 6, 2006 CITY OF EAGAN CITY COUNCIL By: Its Mayor Attest: Its Deputy Clerk CERTIFICATION I, Mira Pepper, Deputy 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 of the City of Eagan, Dakota County, Minnesota, in a regular meeting thereof assembled this 6th day of March, 2006. Mira Pepper, Deputy City Clerk /Y Agenda Information Memo March 6, 2006 Eagan City Council Meeting G. OAKVIEW CENTER ADDITION (LOTS 1 & 2, BLOCK 1~ EASEMENT VACATION ACTION TO BE CONSIDERED: Receive the petition to vacate public drainage and utility easement within Lots 1 and 2, Block 1 Oakview Center Addition and schedule a public hearing to be held on Apri14, 2006. FACTS: • On February 15, 2005, City staff received a petition and letter from Susan Fussell of Loucks McClagan, representing the owners of Lots 1 & 2, Block 1 Oakview Center, requesting the vacation of the existing drainage and utility easement on the common lot line between the two properties, southeast of the intersection of Lone Oak Road and Highway 55. • 10' wide easements were dedicated over the common lot line as part of the Oakview Center Addition plat as the typical side lot easements for drainage and utility purposes. • The purpose of the request is to allow the property owner, Eagan Hospitality Group, to construct a hotel on the two parcels. The configuration of the proposed hotel is over the common lot line of the two parcels. • The property owner will replat the two parcels as one parcel for the proposed development of the site. The Final Plat is scheduled Council consideration on April 4. • The vacation of the existing drainage and utility easements would clean up the proposed plat by avoiding an underlying recorded dedication. • Notices will be published in the legal papers and sent to all potentially affected and/or interested parties for comment prior to the scheduled public hearing. ATTACHMENTS: • Location Map, page /~ • Legal Description, graphic, page /S ,_ ,, Lots 1 & 2, Blk. 1 Oakview Center `" `~~ City of Ea~a~ oposed Easement Vacation 3-2-06 Engineering Department ~ Location Map a u~ 0 a . w°~ ~~o ood 7 U d O yt.. 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I ~ I / Q ff ° I I / :~ I ~ Cn I I ~ = U I ~ N I - ~\ o .n OZ I ~oc~ I ~°o~ N O I ~` I J I ~ `., I o ~ I o o I o CO et p ~ Z h ,i1N3iY35Y3 .(1!7/1/7 O/JV 3:JVN/VNO~ I L£ Z I A / I ~'/J~o--------------~ £b'lIZ M„91,ZO,OON F-- i'; > Agenda Information Memo March 6, 2006 Eagan City Council Meeting H. PROJECT 918, PILOT KNOB ROAD & LONE OAK ROAD ENGINEERING, CONSTRUCTION, RIGHT-OF-WAY, SIGNAL AGREEMENT ACTION TO BE CONSIDERED: Approve an Agreement with Dakota County for Engineering, Construction, Right-of--Way Acquisition and Traffic Control Signals for Project 918 (Pilot Knob Road and Lone Oak Road -Street and Traffic Signal Improvements) and authorize the Mayor and Deputy City Clerk to execute all related documents. FACTS: The Dakota County Transportation Department has scheduled the widening of Pilot Knob Road (Central Parkway to Lone Oak Road) from its current 4-lane design to a 5-lane design with center left-turn lanes including the installation of a traffic signal at the Central Parkway intersection, and the modification of the Lone Oak Road intersection (addition of left-turn lanes on Lone Oak Road) and some traiUsidewalk revisions along Lone Oak Road. This project was originally anticipated to be completed in 2005 and is in accordance with the 5-Year Capital Improvement Programs (2005 - 2009) for the City of Eagan and Dakota County. An agreement between the City of Eagan and the Dakota County Transportation Department has been prepared providing for the right-of--way acquisition, construction cost, maintenance, and operation of the proposed street, trail and traffic signal improvements: As set forth in the agreement, the City's financial share of the widening related improvements is 45% (50% for Central Parkway traffic signal) of the construction, engineering, and inspection costs (Estimated Total Project Cost = $1,730,000; City Share = $600,000). • City staff have reviewed this agreement and found it to be similar to other previous construction project agreements and in order for favorable Council action. /B Consent Agenda March 6, 2006 Regular City Council Meeting I. APPROVE PARKS AND RECREATION FEES AND CHARGES POLICY ACTION TO BE CONSIDERED: Approve the Parks and Recreation Fees and Charges Policy. FACTS • The City of Eagan currently has no formal policy or guideline in place to guide staff when proposing fees and charges for recreation programs and services. • The 20/20 Vision recommended that the department "Adopt guidelines for the Park and Recreation department and its enterprise and revenue components to optimize revenue generations and service equity." • Developing a policy helps to standardize the fees being charged for each program in order to promote equity and equal distribution of resources and is fiscally responsible. • The Department of Parks and Recreation has the responsibility of establishing a philosophy for recovering costs for use of the City's recreational facilities and for participation in various recreation programs. • This philosophy is meant to be a guide for the Parks and Recreation staff to develop a fair and consistent fee schedule and intended to establish a standardized approach to assessing fees for all programs, classes, activities and facilities. • The policy outlines direct and indirect costs, categories for cost recovery and several policy guidelines relating to scholarships, use of subsidized facilities for fund raising or commercial profit generating activities, use of independent contractors and provides latitude for enterprise operations to capture opportunities. • After several meetings with an APrC subcommittee to develop this document, the APrC recommended approval of the policy at their February 16, 2006 meeting. ATTACHMENTS; • Fees and Charges Policy, Pages C~ "' /9 2-10-06 Fees and Charges Policy Introduction The Eagan Parks and Recreation Department has the responsibility of establishing a philosophy for recovering costs for use of the City's recreational facilities and for participation in various recreation programs. This philosophy is meant to be a guide for the Parks and Recreation staff to develop a fair and consistent fee schedule. It is intended to establish a standardized approach to assessing fees for all Eagan Parks and Recreation programs, classes, activities and facilities. Philosophy Eagan's general philosophy is to fund park maintenance, its associated operating costs, and departmental administrative costs from other General Fund revenues and to recover a variable percentage of expenditures directly related to a particular program, activity, facility or event through user fees. Enterprise operations are expected to fully support their direct, indirect costs and capital costs. Fees are appropriate because of one or more of the following: • Cost per user hour of service and/or facility is higher than what is expected for general use or upkeep. • A fee will expand activities for all people. (e.g. Funds may be available for an event but charging a fee allows for additional activities to take place during an event.) • Use of the service or facility is limited to a relatively few individuals; therefore, those who benefit to the exclusion of others should be assessed a user fee for the privilege. • Imposition of a fee serves an independent function such as to limit the use of facilities among a large number of users; to aid in discipline and control; and to promote respect for activity and/or service. Authority The authority to establish appropriate fees rests with the Eagan City Council. The Eagan Parks and Recreation staff shall act in an advisory capacity to the City Council in the establishment of a fee structure. Direct Cost Direct costs can be related to a specific activity or service provided. Direct costs are typically supported by user fees. Examples include: program instructors, site supervisors, facility costs, supplies and equipment; program specific maintenance such as lining and dragging fields, and program specific advertising. Indirect Costs ao Indirect costs are general in nature and are not directly related to a specific activity or service. These costs are typically supported by other General Fund revenues. Examples include: administrative staff, office space, utilities, general department marketing, general maintenance such as mowing, irrigation, fertilizing, and capital expenditures. Categories of Cost Recovery The percentage of recovery for direct and indirect costs varies from program to program and facility to facility. All recreation programs and facilities are expected to be classified in one of the categories listed below. It is recognized that new recreation programs may need an implementation period during which revenue goals may not be met as the public becomes aware of the program and enrollment grows. For this reason, programs must meet appropriate revenue goals by their third offering. Programs in place when this policy is initiated will also have a reasonable time to reach the new target levels. A. Fiduciary -Public Service: These Department activities are offered as a public service to benefit the community as a whole with either no or a nominal admission or registration fee and are supported by other General Fund revenues. Advertising sponsorships may be sold or civic organizations and non-profit groups may partner with the City to enhance these activities as approved as part of the budget each year. Some examples include: Halloween Hodgepodge, Lone Oak Days, Ice Rink Warming Houses, Evening in the Park and Community Concert Series, Open Recreation Hours at the Oasis and Lone Oak Room, and Puppet Stage Pertormances. B. Public Benefit -Partial Cost Recovery: To provide affordable user fees and promote participation in core community programs and facilities, the Department attempts to recover all direct program costs plus an additional 25% for indirect costs. Examples include preschool programming, summer camps, developmental sports, adult sport leagues and youth recreational classes. C. Market Rate Fee or Quality of Life Enhancement - It may be appropriate to charge a fee that recovers more than 25% of indirect costs if: • The program benefits a specific, narrowly defined user group. • The higher fee serves to ration the amount of service that a facility or program can support. • The average market rate for similar services is significantly higher due to demand. Examples include bus trips, skating lessons, private or semi-private sport lessons, and adult fitness classes. ai D. Enterprise Operations: 100% of direct and indirect costs, plus a profit margin, are intended to be recovered through user fees. All profits are retained in the fund. Revenue targets/goals are adopted for these facilities; however, staff is given some latitude in order to be able to adjust user fees in response to market trends, use patterns, and an approved marketing plan. Concessions Although concession operations are provided as a part of Parks & Recreation Facilities as a service to the public, this service must not detract from core programs. Therefore, all concession operations must generate enough revenue to cover all direct expenditures and advertising and are encouraged to generate revenue to offset indirect expenses through appropriate product selection, pricing and advertising. Scholarship Policy A limited Scholarship Fund is available to provide financial assistance for youth under the age of 18 for participation in recreational activities. Scholarships cover a portion of the fees charged. Scholarship applications must be made in person at the Parks & Recreation main office. Use of Subsidized Park Facilities, Pavilions, and Moonshine Retreat Center for Fund Raising or Commercial Profit Generating Activities. Groups wishing to use a park, pavilion, or Moonshine Retreat Center for a fund raising or commercial profit generating activity will be charged a rate that is 15% higher than the public rental per the City's fee schedule. Independent Contractor Guidelines. Independent contractors will only be used to deliver programs through Eagan Parks & Recreation for the following reasons: • Entertainer or speaker at an event or class that is being held as part of an overall program or event. • Company that provides a specialized service (i.e. timing for 5K or lighting/sound for a concert). • To provide specialized instruction where the City is not able to provide the same service through direct hiring of an instructor and the City will benefit from an independent contractor's advanced training, credibility, certification, "following" or "name value". Payment and Terms with all Independent Contractors offering programs and classes: • All registration and fee collection will be the responsibility of Eagan Parks & Recreation. • Eagan Parks & Recreation will promote the program through the Discover Brochure and the City's website. Flyers may also be distributed through other a~ Eagan Parks & Recreation programs. Independent Contractors may also produce/distribute their own publicity for these programs. • 25% of all collected fees will be retained by the City up to a maximum of $25 per registration. The remaining registration fees will be paid to the independent contractor at conclusion of each class/season. • The independent contractor is responsible for facility rental fees in addition to the 25% of revenue retained by Eagan Parks & Recreation. With advance agreement, this fee may also be deducted directly from the contractor's 75% of program registration fees. • Refunds requested before the registration deadline will be approved by the City. Refunds after the program begins will only be issued with the approval of the independent contractor. a3 Consent Agenda March 6, 2006 Regular City Council Meeting J. APPROVE PARKS AND RECREATION PUBLIC ART AND MEMORIALS POLICY ACTION TO BE CONSIDERED: Approve the Parks and Recreation Public Art and Memorials Policy. FACTS • The City of Eagan currently has no formal policy or guideline in place to guide the acceptance, placement, maintenance or removal of donated art or memorials to be placed in city parks and open spaces. • The purpose of this policy is to encourage the display of public art in the City of Eagan and to provide a mechanism for the inclusion of public art and memorial structures throughout the city's parks and open spaces. • Public art can play a vital role in transforming the community into a destination, a distinct place within the metropolitan area. Public art can also acknowledge and celebrate the City's history through commemorative art, memorials, and interpretive projects. • The policy outlines considerations for the acceptance of art, the criteria for review and public input and how the art will be removed. • The public art and memorials guidelines are very extensive and have been reviewed in great detail by staff and an APrC subcommittee over the last two months. They have also been reviewed by the City Attorney for clarification of issues raised by the APrC. • The APrC recommended approval of the policy at their February 16, 2006 meeting. ATTACHMENTS; • Public Art and Memorials Policy, Pagesas_~ a~ Public Art and Memorial Installations in City of Eagan Parks Statement of Purpose The purpose of this policy is to encourage the display of public art in the City of Eagan and to provide a mechanism for the inclusion of public art and memorial structures throughout the city's parks and open spaces. Public art can play a vital role in transforming the community into a destination, a distinct place within the metropolitan area. Public art can also acknowledge and celebrate the City's history through commemorative art, memorials, and interpretive projects. While public art and memorials may enrich a park experience for park users, public open space is also a very precious commodity. New structures should be carefully reviewed to balance these two public benefits. Process for Selection Artwork and memorial structures may be acquired through donation, open competition, invitational competition or direct selection. The process for evaluating proposals is as follows: 1. Proposals for placement of artwork or memorial structures must be made in writing to the Director of Parks & Recreation. 2. Public comment period announced at APrC meeting. 3. Evaluation by the APrC with a recommendation based upon the public benefit of the action made to the City Council. 4. Action by the City Council. Conflicts of Interest Any member of the APrC with a connection or interest in one of the artists or pieces of art must disclose this conflict of interest. Public Review and Comment Period Each proposal will be announced to the public at an APrC regular meeting and then made available for public review and comment at Eagan City Hall for a minimum of 30 days before action is taken by the APrC. Required Proposal Information The written proposal must include: 1. A photo or drawing of the structure. 2. Appraised value of the structure. 3. Description of materials used to create structure including materials needed to display/secure the structure in the park. 4. Dimensions of structure including appropriate base materials needed at the park site. 5. Description, including materials, dimensions, wording and location, of interpretive signage for the structure. 6. Statement regarding relationship to proposed site including aesthetic, cultural, or historic ties. as 7. Statement of probable lifespan of structure and annual maintenance needed to maintain structure integrity. 8. Statement as to whether the work is unique or duplicates other work by the same artist. 9. Statement regarding the significance of the person or event to be memorialized in relationship to the community and to the proposed site. (Memorial proposals only) Public Art and Memorial Guidelines All art and memorial structures must comply with applicable statues such as the Uniform Municipal Contracting Law, environmental laws, and disability/accessibility laws. In addition, all art and memorial structures must meet the following guidelines before being considered for placement in a City- owned park or open space: 1. Absolute ownership and control of the art or memorial structure must pass to the City, including all drawings, proposals, sketches, and other conceptualizations of the art or memorial. All intellectual property rights, including patents, copyrights and moral rights, must be assigned to the City. The applicant artist or donor shall waive all intellectual property rights, including moral rights, to the art or memorial structure. 2. Donations will not be accepted where a condition of donations requires permanent exhibition. 3. In the judgment of the majority of the APrC and the City Council, the structure must be appropriate for display to the general public. 4. Cost of on-going maintenance and repair anticipated throughout the lifespan of the structure must fall within normal park maintenance budget allocations. 5. Donations that require the City to pay installation, framing, restoration, or repair are not encouraged. 6. Artist or provider may request a specific site. However, each placement will be evaluated based upon suitability of the structure for the site. The APrC will make a recommendation to the Council concerning an appropriate site for each structure. 7. If proposal accepted by the City is a concept or design then the final product must match the approved concept or design. 8. The person to be memorialized shall have been deceased for a minimum of five years. (Memorials only.) Criteria for Review The APrC will make a recommendation based upon the following criteria: 1. The proposed structure should be compared with the artists' best work and the best works in the City collection. The acquisition should strengthen, rather than dilute the City's collection. 2. If the structure is to be erected outdoors, the physical condition of the structure should be considered in terms of durability in an outdoor a6 setting. Any requirements for immediate. or future conservation should be noted. 3. The structure must add interest and meaning to the environment in which it is placed. It must be compatible in scale, material, form and content with its surrounding and form an overall relationship with the site. Structure must conform to any existing Master Plan for the site. 4. The structure must have social, cultural, historical and physical context to the site, both existing and planned. 5. The City's overall collection shall strive for diversity in style, scale, media, and artists. There shall be encouragement of exploratory types of work as well as established art forms. 6. In addition to the criteria for a piece of art, memorials will be judged on the significance of the person or event being memorialized in relation to local social, cultural or historical context and must represent broad community values. 7. Structures whose messages are exclusively religious in nature will not be accepted. 8. Structures whose messages are exclusively political in nature will only be considered if the political message is of a historical context Removal of Public Art and Memorials The City shall remove and dispose of works of art and memorials in its collection when it finds such action to be in the public interest based upon the following: 1. As a means of improving the quality of the City's collection a. The structure has no relevance to the collection or serves no exhibition function. b. The structure has a duplicate in the collection. c. The structure no longer meets the current standards for public art and memorials. 2. Due to concerns for public safety when a structure becomes a hazard or a public liability. 3. The structure is in a seriously deteriorated condition. 4. Removal should not be based on current fashion or taste. Attention should be -paid to maintaining a collection which forms a continuum of the City's visual art history. Recommendations for removal shall be made to the APrC who will then make a recommendation based upon the public benefit of the action to the City Council for final approval. Each request for removal will be announced to the public at an APrC regular meeting and then made available for public review and comment at Eagan City Hall for a minimum of 30 days before action is taken by the APrC. Once approval for removal is granted, the structure shall be disposed of in accordance with Minnesota Statues Chapter 471. a~ Consent Agenda March 6, 2006 Regular City Council Meeting K. APPROVE the ANNUAL MAINTENANCE SHUTDOWN FOR THE EAGAN COMMUNITY CENTER. ACTION TO BE CONSIDERED: Approve the annual maintenance shutdown for the Eagan Community Center from August 27 through September 4, 2006. FACTS • As the community center building ages it becomes important to schedule large maintenance projects to maintain the integrity of this city asset. • Several projects including the resurfacing of the wood floors throughout the building and deep cleaning of the playground, fitness center, meeting rooms and central areas are scheduled to occur between August 27 and September 4. • To preserve the health and safety of guests to the building, it would be appropriate to close the building during these maintenance projects. • The time scheduled for this work was based on the lowest attendance in the building so as to have the least impact to guests. This is also the last week before school starts and families are often taking their final vacation of the year or preparing for the new school year. • Every effort will be made to open up portions of the building early as they are available for public use. • When fitness memberships began the Council originally approved a caveat in the contract that stated that the building could be closed for up to 14 days during the year, which would impact guests to the fitness center. • Staff will prepare appropriate notifications to all regular guests or staff who might be impacted by this building closing. Notifications will also appear in the building. ATTACHMENTS; • None. ~~ Agenda Memo March 6, 2006 Regular City Council Meeting L. APPROVE THE REVISED PARK CLASSIFICATION SYSTEM FOR CITY PARKS ACTION TO BE CONSIDERED: To adopt a revised classification system for City parks FACTS: • The current system of park classification dates back to the 1984 and 1994 Park System plans. • The recently completed 20/20 Vision Plan proposed altering the classification system to better reflect current conditions and trends. • Park classification systems are an important tool in determining methods and strategies for management. They do retain a level of flexibility to allow for unique factors specific • Once adopted, staff will begin to develop a system of maintenance strategies and procedures for each classification. These are intended to enhance, not replace the existing maintenance "modes" • The APrC provided input to staff via a workshop and subsequently voted to recommend adoption of the revised system at the meeting of February 16, 2006. • Current Classifications 1. Neighborhood Common 2. Neighborhood Park 3. Community Athletic Field 4. Community Park 5. linear Park 6. Historic Site 7. Special Use Site 8. Conservancy Area Proposed 1. Neighborhood Common 2. Neighborhood Park 3.Community Athletic Field 4.Community Park 5. Greenway Corridor 6. Greenway Preserve 7. Preserve 8. Special Use Site 9. Historic Site ATTACHMENTS: • Summary of the characteristics of the revised classification system, Pages ~'"'3~ a9 PROPOSED PARK CLASSIFICATION SYSTEM Classifications; Neighborhood Common Intended to serve specific neighborhoods within medium to high density residential areas, that can not be adequately served by a traditional neighborhood park due to physical limitations or access constraints. In certain circumstances, the park may be privately operated. Generally 1 to 4 acres in size with limited amenities that may include a play structure, hard court and some seating, '/4 mile service area. The amenities may be specific to the needs of the surrounding neighborhood. Neighborhood Park Provides for a variety active and passive, formal and informal, within a park space easily accessible form a defined neighborhood service area, generally 3/4 of a mile. Distribution is throughout the community. Amenities may include ball fields, skating rinks, warming house, play structure, open space and hard courts. The size is variable though most are less than 15 acres. Community Park Facilities and use are targeted are targeted to serve residents of the entire City. The scale and scope of the site, improvements and amenities are adequate for large groups and special events. Generally more than 25 acres in size, they are often associated with a significant natural feature. Easily accessible from collector and arterial roadways. Amenities are non-athletic and may include large shelters and pavilions, hiking trails, play structures, fishing piers and picnic grounds. Community Athletic Field A large athletic complex servicing the entire community, intended primarily for organized youth and adult play including tournaments. Generally more than 25 acres in size and easily accessible. Field space maybe developed for a specific sport or remain open to allow for multiple sport use. Fields may be lighted to accommodate extended use. Some opportunity for passive use that includes trails and picnic areas, restroom/service buildings and play structures may be on site. ~U Preserve An isolated site consisting primarily of unique and/or undisturbed tracts of park land. While not physically connected to other park land, it may function as part of an ecological corridor, flyway or a link in other natural processes. Development is associated only with passive activities such as hiking, nature observation or resource enhancement. Some may contain or function as drain runs, retention ponds or stormwater collection points. Access maybe limited Greenway Preserve A primarily undisturbed tract of park land containing unique and/or undisturbed natural resources, most often physically connected to other preserves or resources via a natural corridor. Any activities are passive and may include hiking, nature observation and interpretation. The site may contain elements of, or function as, part of the storm water management system. Access maybe limited. Greenway Corridor A contiguous lineal corridor or resource that enhances, buffers or connects undisturbed natural areas or features. May allow for physical access between areas via a trail or function as wildlife/ecologic corridor. Access may be from multiple public spaces, streets or trails. Special Use Facilities that provide a unique activity or built environment/amenities that promotes a unique activity. Often intended for a single purpose. The location may be dictated by the physical needs of a specific activity which make it incompatible with other recreational areas. Service area is the entire community. Historic Site A site intended to preserve, protect and/or interpret historic areas or buildings. Improvements are generally limited to those intended to enhance the experience of any visitors or of scheduled, on-site, programs. The site may also be designated as historically significant at the State or national level. 3/ Consent Agenda March 6, 2006 Regular City Council Meeting M. APPROVE RESOLUTION OF SUPPORT AND AUTHORIZE THE SUBMISSION of DNR OUTDOOR RECREATION GRANT for THRESHER FIELDS IMPROVEMENTS ACTION TO BE CONSIDERED: Approve a resolution of support and authorize the submission of a DNR Outdoor Recreation Grant Application for improvements to Thresher fields Park, and the Mayor and City Clerk to sign the required application materials. FACTS • Thresher Fields fully opened for youth field activities in the spring of 2005 • Given the size of the site, a large number of participants and spectators are expected throughout its season of use. There is no water available, portable toilets will be brought in until such time as a toilet facility is developed. • The Department of Natural Resources (DNR) makes available grant funds to local units of government for enhancements to public recreational facilities. • Planned amenities may include; trail extension, toilet/service building, open sided shelter structure, play elements, security lights, handicapped accessible features and landscaping. • By submitting an application the City is under NO obligation to except a grant award or complete the project. There is no application fee. Final authorization to enter into an agreement rests with the City Council. • Grants are awarded as a 50% match with the City contribution being in-kind services or cash • The estimated project cost is in the range of approximately $ 394,000. Should a grant be awarded, a more refined cost estimate would be developed. • The estimated City expenditure/value of $ 197,000 would come from the Park Site Fund and in-house labor. Partnership opportunities may also be explored. On-site work would not begin unti12007. • On February 16, 2006, the APrC conducted a Public Hearing regarding the grant application. No comments were received. The APrC subsequently recommended that final application be made. ATTACHMENTS; 1. Mayors Letter of Commitment (Entering into a final contract remains subject to Council approval at the time of award ,Page ~~. 2. Local Government Resolution, Page~~. 3. Public Hearing minutes, Pages ,~ ~-3L . 3~ Exhibit 6.1: Letter of Commitment Department of Natural Resources Local Grants Unit Office of Budget Management and Budget Services Box 10 500 Lafayette Road St Paul, MN 55155-4010 March 6, 2006 Re: Letter of Commitment; Thresher Fields Improvements To Whom It May Concern, The City of Eagan is pleased to have the opportunity to make application to the Department of Natural Resources (DNR) Outdoor Recreation Grant Program. The City of Eagan has a long history of working cooperatively with the DNR through a variety of grant programs. We are confident that you will find our current proposal to be innovative, cost effective, and an amenity that will be of great benefit to our community. Based upon the recent actions of the Eagan City Council and Advisory Park and Recreation Commission affirming the application, I am confident in stating that there is great local support for the project. The development of Thresher Fields has been a project nearly ten years in the making. From the time the City acquired the parcel through tax forfeiture, negotiated through a variety of environmental remediations and finally completed the first phase of development, the vision has been that of a quality recreational facility for all to enjoy. The proposed improvements will help achieve that. Should the City be awarded a grant, and subsequently, the partnership be approved by the City Council, the City would commit to a minimum of a 50% match for the project. The majority of the funding for the City share of the project, approximately $197,500, would come from the City Park Site Fund. These funds are derived from payments made by developers in lieu of making a land dedication to the City. The Fund is used to make improvements in the City park system. A portion of the match would also be derived from the value of allowable in-kind services provided by City forces. This would be determined during the plans and specification phase of the project. Any project cost overages would be covered from the Fund, in-kind services, or a combination thereof. Should you have questions or require clarification, please contact Paul Olson, Superintendent of Parks at 651-675-5313. We look forward to your response. Respectfully, The Honorable Pat Geagan Mayor, City of Eagan G:parks06/Mayor's Letter 33 ITEM 7 -LOCAL GOVERNMENT RESOLUTION BE IT RESOLVED that Ci . of Eagan act as legal sponsor for the project contained in the (Applicant) Outdoor Recreation Grant Program Application to be submitted on March 10, 2006 and (Day, Month, Year) that Director of Parks & Recreation is hereby authorized to apply to the Department of Natural (Title of Authorized Official) Resources for funding of this project on behalf of City of Eagan . (Applicant) BE IT FURTHER RESOLVED that Ci . of Ea ag n has the legal authority to apply for (Applicant) Financial assistance, and financial capability to meet the match requirement and ensure adequate construction, operation, maintenance and replacement of the proposed project for its design life. BE IT FURTHER RESOLVED that City of Ea ag_n has not incurred any costs described (Applicant) on Item 5 and has not entered into a written purchase agreement for the property described on Item 4 BE IT FURTHER RESOLVED that upon approval of its application by the state, City of Ea an (Applicant) may enter into an agreement with the State of Minnesota for the above-referenced project, and that City of Ea ag n certifies that it will comply with all applicable laws and regulations as stated (Applicant) stated in the grant agreement including dedicating the park property for outdoor recreation uses into perpetuity. NOW, THEREFORE BE IT RESOLVED that Director of Parks & Recreation is hereby authorized to (Title of Authorized Official) execute such agreements as are necessary to implement the project on behalf of the applicant. I CERTIFY THAT the above resolution was adopted by the City Council of (City Council, County Board, etc.) City of Ea ag n on March 6, 2006 (Applicant) (Date) SIGNED: (Signature) WITNESSED: (Signature) Mayor, Ci _ of Eagan Clerk, Ci of Eagan (Title) (Date) (Title) (Date) G:parks06llocal gov resolution 3~ Advisory Parks Commission Minutes February 16, 2006 NEW BUSINESS PUBLIC HEARING: THRESHER FIELDS GRANT APPLICATION The City Council designated the Advisory Parks Commission meeting of February 16, 2006 as the public hearing date required for the application of DNR Outdoor Recreation Grant. This grant will assist with further development of Thresher Fields. Notice of the public hearing section of the February 16, 2006 APrC meeting was published with the APrC agenda in the City's newspaper of record. Vice Chair Peterson asked that this discussion be noted as a Public Hearing. Superintendent of Parks, Paul Olson, provided a brief overview the Outdoor Recreation Grant and. described the following proposed projects the grant money would be applied to. Proiect Scope/Activity Involved The proposed project includes park shelter buildings that will function as a restroom, weather/sun shelter, trail head, and gathering area. The use of Thresher Fields is mixed; partially groomed athletic fields with scheduled activities ranging from soccer practice to tournament play. The proposed restroom storage building would provide the only restrooms available for public use in the vicinity. Heavy use of the site is expected to continue given the demand for scheduled tournaments and games. A permanent structure would offer comfort and convenient storage of maintenance equipment and supplies. Some of the more prestigious tournaments require on-site facilities. The proposed 2400 square foot, open-sided, shelter building will provide active and passive opportunities. It will serve as a shelter during inclement weather, a meeting area for visitors, or the base location for team pictures or personal events like picnics or afternoon play. Grills and picnic tables will be located nearby. The facility will be ADA compliant and use energy efficient fixtures and resilient materials that have become standard in Eagan park buildings. The service building will be approximately 640 square foot, block and wood, seasonal building with male and female ADA compliant restroom facilities. There will be additional space for maintenance supplies and storage, bulletin boards, drinking fountains and picnic tables separated by a landscaped buffer from the parking area. Water and sewer service to the building site were installed during the first phase of park development. A playground with features intended for accessibility will be installed near the pavilion. It will provide opportunities for young, non-participants or visitors to enjoy an activity at any time. A paved accessible trail will extend from the parking lot past the playground to a scenic overlook deck located above the easterly shore of the lake. The trail beyond the overlook will transition to a soft surface hiking trail and connect with an existing City trail along Yankee Doodle Road. The trail will provide an opportunity for park users to hike between Thresher Fields and the existing City trail system. A future phase of park improvement may extend the trail around the lake. A connector trail segment running north from the park was installed during a recent upgrade of the entry road. Implementation Schedule Park shelter buildings of this size and scope have typically been able to complete substantial construction within the year they begin. It is anticipated that the proposed project would be achieved in later 2007, opening in May of 2008. The grant allows a three year time period for completion of elements. Overall cost and the proposed financing for the proiect Olson informed the commission that total estimated cost of the proposed project is $394.000. The DNR requires a 50% match for funding consideration, thus the grant request is $197,000. The local match of 3S Advisory Parks Commission Minutes February 16, 2006 50% is expected to consist of $182,000 to be allocated from the Park Site Fund and a $15,000 of in-kind labor costs. The in-kind contribution will consist primarily of the value of City labor used to implement the project. Costs to be assessed to community residents Project financing is proposed to be 50% state grant funding, and 50% from the Park Site Fund. Since the Park Site Fund is derived from developer contribution rather than taxation or special assessment, it is not anticipated that the proposed project will have any cost assessed to community residents. Other associated project costs Other costs associated with the project would be routine and long term maintenance. Olson said costs would be included in the City's annual operation and maintenance budgetary request. The public hearing concluded with Member Bari moving to submit the grant application for the Outdoor Recreation Grant through the Department of Natural Resources. Member Danner seconded and all present voted to approve. The City Council has this item scheduled for its March 7`h Council meeting. The completed application will be submitted to the DNR by March 31, 2006. Should the project request be accepted, the project could be completed in 2007. 3b Consent Agenda March 6, 2006 Regular City Council Meeting N. AUTHORIZE ADVERTISEMENT FOR REQUEST FOR PROPOSALS FOR CONCESSION PRODUCTS TO BE SOLD IN THE VARIOUS CONCESSIONS OPERATIONS OPERATED BY EAGAN PARKS AND RECREATION. ACTION TO BE CONSIDERED: Authorize the advertisement for request for proposals for concession products to be sold in the various concessions operations operated by Eagan Parks and Recreation. FACTS • The City of Eagan manages concessions operations at Cascade Bay, Civic Arena, Eagan Community Center, Lexington/Diffley and Northview athletic complexes. • Staff engaged in a detailed review and analysis of each of the operations to assess product mix and pricing. • The analysis leads to the recommendation that a more centralized approach to concessions delivery be established. • The first step would be to combine the buying power of all the concessions operations to maintain a consistent base of products and pricing. • After several meetings it was determined that the City of Eagan is now better prepared to solicit proposals for the core product mix that will be offered at all facilities. • Currently there is a wide range of vendors providing products to the various concessions operations and it is staff's opinion that there will be cost savings and less billing and delivery issues by moving to a very limited number of vendors. • If the Council authorizes staff to proceed with the advertisement, it is expected that the recommended bidder(s) will be brought back to the Council in April for approval so this piece can be in place for the beginning of the spring concessions operations. • The concessions operation work plan will continue to evolve to develop strategies for shared staffing, inventory control, stocking product and general consolidated operating procedures. ATTACHMENTS; • Request for Proposal, Pages 38'""0 37 City of Eagan Parks & Recreation Department Concessions Food and Serving Supplies REQUEST FOR PROPOSAL MARCH 2006 3s Eagan Parks & Recreation Department Concession Food & Serving Supplies Request For Proposal March 2006 Purpose of Proposal The City of Eagan Parks and Recreation Department is currently accepting bids for a primary provider of concessions food and serving supplies for the period of May 1, 2006 through April 30, 2007. This bid is for all food and serving supplies purchased for concessions operations at Cascade Bay, Eagan Civic Arena, Eagan Community Center, Northview and Lexington-Diffley athletic facilities during city sponsored events, and general recreation programs. Combined, these facilities spent approximately $192,000 on concession food and supplies in 2005. Any questions can be directed to Juli Seydell Johnson, Director of Parks & Recreation at 651-675-5500 or via e- mail at jsjohnson@cityofeagan.com. The final decision to accept a bid will be based on price, level of service including delivery services and minimum requirements for orders, and references. Terms of Agreement 1. Prices quoted will be honored on all orders from City of Eagan Parks & Recreation facilities. Facilities include Cascade Bay Waterpark, Eagan Civic Arena, Eagan Community Center, Northview and Lexington- Diffley athletic complexes, and general recreation events and programs. 2. Delivery sites will be: a. Cascade Bay, 1560 Civic Center Drive b. Eagan Civic Arena, 3870 Pilot Knob Road i. Includes deliveries for softball and general recreation. c. Eagan Community Center, 1501 Central Parkway 3. Each concession operation will order separately and individual invoices must be generated for each operation: Cascade Bay, Eagan Civic Arena, Eagan Community Center, Softball, and General Recreation. All invoices will be mailed to Eagan City Hall for payment. 4. Substitutions of product are allowed only with prior approval from concession manager at each operation. 5. Deliveries must be made at least once a week to each location if an order is placed for that location. 6. If any additional charges apply, they must be included in the bid at this time. 7. The City of Eagan's intent is to choose one vendor for all concession food and supply purchases. However, if a specific product or equivalent is not available, the City may choose to purchase item from a separate vendor. 8. The list of food and supplies provided for this bid demonstrate typical items ordered for each concession operation. Actual orders will vary from week to week. 9. Additional items maybe added throughout the year through negotiation between the City and food provider. 10. Non-performance: It is the bidder's responsibility to familiarize himself/herself, his/her supervisors and his/her crews as to the requirements of the contract and to perform all tasks in an acceptable timely manner. 11. The Concessions Supervisor at each facility and the vendor company owner (or owner's representative) shall work to positively resolve any service/performance issues that may arise. If the issue is not able to be resolved within 30 days, either party may terminate this agreement with a thirty (30) day written notification. The City of Eagan reserves the right to terminate the contract with the concessions food and supplies provider with a 30 day written notification if there are service, performance, health or safety issues that are impeding the success of concession operations. 12. The agreement shall be effective May 1, 2006 through Apri130, 2007. Responses Sealed bids shall be received unti14:30 p.m. on Friday, March Z4, 2006, in the office of the Eagan Parks and Recreation Department, 3830 Pilot Knob Road, Eagan, MN 55123. Please send six (6) copies of the proposal to the attention of Ju1i Seydell Johnson, Director of Parks & Recreation in an envelope clearly marked with 39 Eagan Parks & Recreation Department Concession Food & Serving Supplies Request For Proposal March 2006 "Concessions Bid". Faxed or e-mailed submission will not be accepted. Eagan City Hall is located at 3830 Pilot Knob Road, Eagan, MN 55122. Responses are to include the following: 1. Name, address, phone, fax, e-mail and website address of responding company 2. Name, address, phone, fax, e-mail of representative of responding company 3. General description of company 4. History of company 5. Statement of intent to provide requested services for Eagan Parks and Recreation Department. 6. Completed bid sheet 7. List of at least three references from current customers. 8. Description of ordering method and delivery schedule. 9. Listing and description of any service, delivery, or other miscellaneous charges that may be added to invoices 10. Description of order minimums or other restrictions that may apply to services and deliveries. Send responses to: Juli Seydell Johnson Director of Parks and Recreation Eagan City Hall 3830 Pilot Knob Road Eagan, MN 55122 Proposals may not be withdrawn for 60 days after the receipt of proposals without the consent of the City of Eagan. No Contact Proposing Caterers and their representatives are prohibited from contacting any elected official for purposes of lobbying to secure this contract. Acceptance/Rejection of Proposals The City of Eagan intends to enter into a contract with provider that best satisfies the needs of the City. The City of Eagan reserves the right to reject any and all proposals and to act in the best interest of the City and its citizens. This RFP does not commit the City to award contract or share in any expenses of preparing these proposals, or travel expenses related to the proposal or interview process. 2 y" Agenda Memo March 6, 2006 Regular City Council Meeting CONSENT AGENDA: O. Liquor License and Tobacco License for K & J Liquors, 4182 Pilot Knob Road ACTION TO BE CONSIDERED: Approve Off-Sale Liquor License for K & J Liquors, LLC, 4182 Pilot Knob Road Approve Tobacco License for K & J Liquors, LLC, 4182 Pilot Knob Road FACTS: Kory Krause has applied for an off-sale liquor license and a tobacco license with the City of Eagan. The business will be structured as a Limited Liability Company. The owners are purchasing the existing MGM Wine and Spirits. The new owners will continue to operate the establishment using the name of the current establishment MGM Wine and Spirits All required documents have been submitted, reviewed and deemed in order by City staff and the Police Department. ATTACHMENTS: None (The applications are available for review in the Administration Department) ATTACHMENTS: None. (The application is available for review in Administration.) ~f/ Agenda Information Memo March 6, 2006 Eagan City Council Meeting PUBLIC HEARLNGS A. CLIFF LAKE CENTRE San ADDITION - EASEMENT VACATION (Lot 2, Block 1) & FINAL PLANNED DEVELOPMENT (1965 Cliff Lake Rd.) ACTION TO BE CONSIDERED: 1. Approve/Deny the vacation of a portion of a public drainage and utility easement within Lot 2, Block 1, Cliff Lake Centre 3ra Addition and authorize the Mayor and Deputy City Clerk to execute all related documents, and if approved, 2. Approve (OR direct findings of fact for denial) a Final Planned Development to construct a 14,375 sq. ft. multi-tenant retail building located at 1965 Cliff Lake Road in the SW '/a of Section 29. FACTS: 1. EASEMENT VACATION • On November 18, 2005, City staff received a letter from Jay W. Feider, President, Positive Companies, Inc., requesting the vacation of a portion of an existing drainage and utility easement on Lot 2, Block 1, Cliff Lake Centre 3ra Addition, southwest of the intersection of Cliff Lake Road and Rahn Road. • On February 7, the City Council scheduled a new public hearing to be held on March 6 to consider the petition to vacate a portion of said drainage and utility easement. • Public drainage and utility easements were dedicated as part of the Cliff Lake Centre 3ra Addition plat for the encompassed pond area impacted up to the high water level (HWL) of the 1% (100-Year) Storm Event. • The purpose of the request is to allow the developer to construct a new office building on Lot 2 resulting in a retaining wall and a corner of the building encroaching into the limits of the original dedicated easement. This encroachment will not affect the storage capacity requirements of the original easement configuration. • Notices for the public hearing were published in the legal newspaper and sent to all potentially affected and/or interested parties for comment prior to the scheduled 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 favorable Council action. 2. FINAL PLANNED DEVELOPMENT • A Preliminary Planned Development was established in 2002 by Cliff Road Properties. • Positive Companies is now developing a 14,375 square foot retail building on this lot. The proposed development is consistent with the prior Planned Development Agreement governing this property. • The Final Planned Development Agreement is anticipated to be signed and in order for execution at the regular meeting of the City Council ATTACHMENTS: 3 • Location Map, page ~. • Legal Description & Graphic, page [~" 7 -~ City of Ea~a~ Engineering Department Lot 2, Blk. 1, Cliff Lake Centre 3rd Add. Easement Vacation I 12/15/05 n Map DESCRIPTION OF PORTION OF DRAINAGE EASEMENT TO BE VACATED COMMENCING AT THE SOUTHWEST CORNER OF LOT 2, BLOCK 1, CUFF LAKE CENTRE 3R0 ADDITION, THENCE NORTH 00 DEGREES 10 MINUTES 23 SECONDS EAST A DISTANCE OF 361.52 FEET, THENCE NORTH 21 DEGREES 47 MINUTES 23 SECONDS EAST A DISTANCE OF 311.17 FEET THENCE NORTH 59 DEGREES 10 MINUTES 29 SECONDS EAST A DISTANCE OF 224' FEET, THENCE NORTH 89 DECREES 31 MINUTES 07 SECONDS EAST A DISTANCE OF 13.26 FEET, THENCE NORTH 55 DEGREES 13 MINUTES 15 SECONDS EAST A DISTANCE CF 17.53 FEET TO THE POINT OF BEGINING OF THE PORTION OF THE DRAINAGE EASEMENT TO BE VACATED; THENCE NORTH 55 DEGREES 13 MINUTES 15 SECONDS EAST A DISTANCE OF 2277 FEET, THENCE SOUTH 57 DEGREES 59 MINUTES 58 SECONDS EAST A DISTANCE OF 5.32 FEET, THENCE SOUTH 9 DEGREES 38 MINUTES 21 SECONDS WEST A DISTANCE OF 58.02', THENCE SOUTH 6 DEGREES 44 MINUTES 59 SECONDS EAST A DISTANCE OF 47.40 FEET, THENCE SOUTH 18 DEGREES 23 MINUTES 40 SECONDS EAST OF DISTANCE OF 19.40 FEET, THENCE SOUTH 34 DEGREES 59 MINUTES 27 SECONDS EAST A DISTANCE OF 204.90', THENCE SOUTH 89 DEGREES 22 MINUTES 30 SECONDS WEST /`~ A DISTANCE OF 1269 FEET, THENCE NORTH 35 DEGREES 03 MINUTES 31 SECONDS WEST A DISTANCE OF 226.21 FEET, ~ THENCE NORTH 0 DEGREES 20 MINUTES 16 SECONDS WEST, A DISTANCE OF 94.96 FEET, BACK TO THE POINT OF \ ~~ BEGINIING OF THE DESCRIPED PARTIAL EASEMENT CONTAINING 4,121 S.F. AND THERE TERMINATING. \ ~ i~ \ ~ \ ~ /~ \ ,\~) ~ ~ i \ , \ v ~ . , ~ \ . ---~ 1 ,~ ~q0 ~- 1 , ~~ ` 1 \ ~ \ '\ \ \ ~ \ ~`` \ ~. \ ., '\ ~ .. 11`~I 171y 1 ~1 I ~ c 1~ ~ j \~ 1 1i ~~ 1 I; 17 Ig ~ ~, 1 ~. ~. ~- '~ ` , PIOVVD C I ~ I I 1 L~ 1 I 1 (~ _ m I I I ,, ~ I I m ,~ ~ I I ,~ ~ 9 f I i " c. q ~ ~ t;° I ~~ . ` .# ~ ;~` ~` ~=go ~ ~ .p,• I I ~\,,o ~i N I ~`; ~ ~~~ . `'- I ~~'. , \ ` ~$' I .\ ~,` f I ~~', ~ ., ~~~ ~~.' ~ I ~ Eesemen ~ ~~ I ~~° ' -'~ .. ~' `_ ,. sac zz'~o=M~~ ~, 12a9i J.\ \ \. /~ i /' /~j r r 'I r I I ro be vacated ~ I i i i i ~^ ~~ ~~ Agenda Information Memo March 6, 2006 Eagan City Council Meeting OLD BUSINESS A. PROJECT 937, LONE OAK PARKWAY TRAIL IMPROVEMENTS ACTION TO BE CONSIDERED: 1. Move to reconsider and approve Project 937 (Lone Oak Parkway Trail Improvements), and 2. If approved, authorize the preparation of detailed plans and specifications. FACTS • On March 23, 2005, City staff received a petition from CSM Corporation, developer and owner of properties in the Waters Development in northeast Eagan, requesting trail improvements, along the west boulevards of both Lone Oak Drive and Lone Oak Parkway (Lone Oak Rd to Northwest Pkwy). In response to the petition, the Council initiated Project 922 (Lone Oak Drive/Parkway Trail Improvements) and authorized the preparation of a feasibility report identifying the scope, cost, schedule and method of financing the proposed trail construction. • The construction of a trail along the west boulevard of Lone Oak Parkway was included in the feasibility report for Project 922 as an Alternate for the Council's consideration and direction. A significant amount of assessable frontage was adjacent to the United States Postal Service (LISPS) Regional Facility Service Center on the west side of Lone Oak Parkway. The City does not have authority to assess this property without their consent, and LISPS would not agree to be one of the petitioners. • On July 19, 2005, the City Council held a public hearing for Project 922. After presentation of the project and public comment from a representative of CSM Corporation, the Council approved the project (without the Alternate trail along the LISPS parcel on the west side of Lone Oak Parkway) and authorized preparation of detailed plans and specifications. Direction was given to pursue a potential trail along the east side of Lone Oak Parkway for later consideration. • At the City Council's direction, city staff attempted to work with the petitioner of Project 922, CSM Corporation, to get a new petition for the east side (across the street from the LISPS parcel). City staff did not receive a petition for this additional trail segment. • On August 16, 2005, the City Council initiated Project 937 (Lone Oak Parkway Trail Improvements) without a petition and authorized the preparation of a feasibility report identifying the scope, cost, schedule and method of financing a proposed trail construction along the east side of Lone Oak Parkway. T~ • On September 20, 2005, the City Council held a public hearing for Project 937. After presentation of the projects and public comment from CSM Corporation and Northwest Airlines indicating their objection to the project, the Council denied the project and directed staff to work with CSM to investigate a possible private contract. • City staff has successfully worked with CSM Corporation and they have executed an agreement providing for apublic/private partnership for the construction of a trail along the west side of Lone Oak Drive (Prof 922) and the east side of Lone Oak Parkway (Prof 927). The agreement states that CSM Corporation will waive their rights to a public hearing and pay the full construction costs of the trail via special assessments and the city will finance the costs of the engineering design, inspection and construction/contract management (performed by City personnel). • The City Attorney's office has reviewed the agreement and found it to be in order for favorable consideration by the Council. ADDITIONAL INFORMATION • If the preparation of detailed plans and specifications is approved by the City Council, this project will come before the Council again at its next meeting on March 21, 2006 for approval of plans and specifications and authorization to advertise for a bid opening as part of Contract OS-08. `f6 Agenda Information Memo March 6, 2006 Eagan City Council Meeting VII. NEW BUSINESS A. PRELIMINARY SUBDIVISION (GUSTAFSON ADDITION) -RICK GUSTAFSON ACTIONS TO BE CONSIDERED: To approve (Or direct Findings of Fact for Denial) a Preliminary Subdivision (Esmeralda Addition) of 2.38 acres to create two single family lots located at 543 Red Pine Lane in the NE '/4 of Section 36; subject to the conditions in the APC minutes. To approve (Or direct Findings of Fact for Denial) a Variance for the existing garage setback of 16' from the public right-o-f--way for property at 543 Red Pine Line in the NE'/4 of Section 36, subject to the conditions in the APC minutes. To approve (Or direct Findings of Fact for Denial) a Variance to allow existing detached accessory structures exceeding 800 sq. ft. in area for property at 543 Red Pine Line in the NE '/4 of Section 36, subject to the conditions in the APC minutes. REQUIRED VOTE FOR APPROVAL: Preliminary Subdivision - Majority of Council Members Present; Variances - Majority of Councilmembers present FACTS: - The applicant is requesting approval of a subdivision to create two single family lots. - A single family home, detached garage and shed are present on the property. - The property is zoned R-1 and is in the Shoreland Overlay Zone of Fitz Lake. - The proposed lots comply with both R-1 and Shoreland zoning requirements. - The existing house and garage will remain on Lot 2, the shed will be relocated to Lot 2. - Construction of a new single-family home is proposed for Lot 1. - The Variances will memorialize existing conditions on the property -the garage setback of 16 feet from the public right-of--way, and detached accessory structures (garage and shed combined) exceeding 800 sq. ft. in area. - The Advisory Planning Commission held a public hearing on February 28, 2006 and recommended approval, subject to conditions in the APC minutes. ~~ Old Business A. ISSUES: - The Gustafson's object to establishing a 30-foot conservation easement around the pond as recommended by the Advisory Parks and Recreation Commission at their February 16, 200b. They have submitted supplemental correspondence explaining their position. - The subdivision to the west, Finch Place, has a conservation easement around the pond. The easement was initially established with the Finch Place subdivision because of the intensity of that development and particularly because of grading encroachments into the 30-foot wetland buffer area. - Similar intensity of construction or proximity of grading to the pond and buffer area is not anticipated with this proposal. However, neighbors to the west in the Finch Place subdivision believe the easement should be consistent around the entire pond. - The City Water Resources Coordinator has indicated that the conservation easement would have little impact on water quality for this pond. However, the easement would prevent structures, removal of trees, and significant vegetation alteration within the easement area. 120-DAY AGENCY ACTION DEADLINE: May 31, 2006 ATTACHMENTS (3): Draft APC Minutes February 28, 203, page .y~''s~ Staff report on page~}~through Additional Correspondence from applicant, pages through ~{S Advisory Planning Commission Minutes February 28, 2006 Page 2 B. Gustafson Addition Applicant Name: Rick Gustafson Location: 543 Red Pine Lane; SECTION 36 TWN 27 RANGE 23 S 166 FT OF W 264 FT OF SE 1/4 OF NE 1/4 SUBJ TO ESMNTS ALSO N 198 FT OF W 264 FT OF NE'/ OF SE 1/4 SUBJ TO ESMNTS Application: Preliminary Subdivision A Preliminary Subdivision of 2.38 acres to create 2 single family lots. File Number: 36-PS-01-01-06 Planner Dudziak introduced this item and highlighted the information presented in the City Staff report dated February 9, 2006. She noted the background and history. Chair Heyl opened the public hearing. Mark fluster, 4810 Red Pine Court expressed concern with the 30-foot buffer and stated he was under the impression the buffer was a requirement. Chair Heyl asked for background and what was required for the Finch Place Development. Planner Dudziak displayed a picture of the Finch Place Development and highlighted the 30-foot wetland buffer line. She explained the need and reason for the conservation easement on the Finch Place development, and stated the matter of such an easement was discussed with the Gustafson's. She stated the Gustafson's proposal for subdivision shows construction activity near Red Pine Lane and not near the pond or buffer area. She stated the possibilities for encroachment activities are not as great as they were with the Finch Place Development. Chair Heyl asked if City Staff is concerned for detriment to the wetland. Planner Dudziak responded there would be little to no impact on the water quality and the purpose is to protect the vegetation. Rick and Kim Gustafson stated if .the conservation easement was in place, they would not be able to prune and maintain the oak trees as they have in the past. They stated the desire to continue the maintenance of the property and wildlife. They also explained that their shoreline has remained the same for 25 years and they will not be encroaching on it now. Member Matthees stated concern for the future owners of the property. She stated the Gustafson's appreciate the land, however future owners may not. Ms. Gustafson stated the<lai-ge oak trees are part of the value of the land and she can not imagine someone compromising that. Member Gladhill stated the guaranteed future protection of the land is more valuable than the potential loss of control to the Gustafson's. Chair Heyl explained that this is not the Finch Place Development and in the past the City has not required the easement unless needed. She stated opposition to imposing it in this situation when this development is not going to encroach on the wetland. She stated the new construction will be closer to the road than the pond. '~9 Advisory Planning Commission Minutes February 28, 2006 Page 3 Member Matthees stated concern that the future owners will not take pride in the property, therefore she would like to prevent any harmful situations. She also stated concern that if there were no buffer and no easement, the property owner could remove all the trees and by applying the buffer, that would be prevented. Member Dugan asked if an easement could be created that would go into effect only upon sale of the property. City Attorney Bob Bauer responded easements are granted at the time presented, not to give people special treatment, therefore it would not be appropriate. There being no further public comment, Chair Heyl closed the public hearing and turned the discussion back to the Commission. Member Gladhill moved, Member Chavez seconded a motion to recommend approval of a Preliminary Subdivision (Gustafson Addition) of 2.38 acres to create 2 single family parcels for property located at 543 Red Pine Lane in the SE'/4 of Section 36 subject o the following conditions as amended: 1. The developer shall comply with these standards conditions'of plat approval as adopted by Council on February 2, 1993: A1, B1,4, C1, D1, E1 2. The property shall be platted. 3. Both lots are subject to a maximum of 25% impervious surface. 4. The shed located on Lot 1 shall be moved to Lot 2 prior to building permit being issued for Lot 1. 5. The existing house on Lot 2 and the future home on Lot 1, shall be connected to the City sanitary sewer and water systems in conjunction with this development. 6. All existing septic and well systems shall be abandoned according to Dakota County rules and regulations. 7. The developer shall construct a manhole on the sanitary sewer stub and a hydrant on the water main stub from Red Pine Lane, in accordance with City engineering standards. 8. A cash dedication in lieu of on-site water quality ponding should be required for this development.. 9. An individual tree preservation plan shall be submitted at time of building permit for Lot 1. 10. A conservation easement shall be provided over the 30-foot buffer area around the pond, in a form acceptable to the City Attorney. Chair Heyi stated there should not be a conservation easement imposed; the City Council can determine if they want it applied in the whole area, such as The Finch Place Development Member Bendt stated concern for the protection of the trees. All voted in favor. Motion carried 7-0. Member Gladhill moved, Member Chavez seconded a motion to recommend approval of a 16 foot Variance to the setback'from public right-of-way for the existing garage on newly created Lot 2, Block 1, Gustafson Addition subject to the following condition: 1. The variance only applies to the existing 1,120 square foot garage. ~D Advisory Planning Commission Minutes February 28, 2006 Page 4 Chair Heyl stated the variance should be granted to recognize the existing garage location, it is not requested for new construction. All voted in favor. Motion carried 7-0. Member Gladhill moved, Member Bendt seconded a motion to recommend approval of a Variance to the building area limitation of 800 square feet for detached buildings for the existing 100 square foot shed and 1,100 square foot garage for Lot 2, Block 1, Gustafson Addition subject to the following condition: 1. If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. Chair Heyl stated the shed already exists and is not being added to the property.. All voted in favor. Motion carried 7-0. V. OTHER ITEMS There were no Other Items to discuss. 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 Planner Dudziak announced that a workshop_would be held on Thursday March 9, 2006, at 5:30 p. m. VIIL ADJOURNMENT Member Bendt moved, Member Chavez seconded a motion to adjourn the Advisory Planning Commission meeting at 7:05 p. m. All voted in favor. Motion carried -0. Respectfully Submitted by: SI PLANNING REPORT CITY OF EAGAN REPORT DATE: February 9, 2006 APPLICANT: Rick Gustafson PROPERTY OWNER: Same CASE: 36-PS-O1-O1-06 HEARING DATE: February 28, 2006 APPLICATION DATE: January 31, 2006 REQUEST: Preliminary Subdivision PREPARED BY: Sheila Cartney LOCATION: 543 Red Pine Lane COMPREHENSIVE PLAN: LD, Low Density Residential ZONING: R-1, Single Family Residential SUMMARY OF REQUEST The applicant is requesting approval of a Preliminary Subdivision (Gustafson Addition) of 2.38 acres to create 2 single family parcels for property located at 543 Red Pine Lane in the SE '/4 of Section 36. AUTHORITY FOR REVIEW Subdivision: City Code Section 13.20 Subd. 6 states that "In the case of platting, the Planning Commission and the Council shall be guided by criteria, including the following, in approving, denying or establishing conditions related thereto: A. That the proposed subdivision does comply with applicable City Code provisions and the Comprehensive Guide Plan. B. That the design or improvement of the proposed subdivision complies with applicable plans of Dakota County, State of Minnesota, or the Metropolitan Council. C. That the physical characteristics of the site including, but not limited to, topography, vegetation, susceptibility to erosion and siltation, susceptibility to flooding, water storage and retention are such that the site is suitable for the type of development or use sa Planning Report -Gustafson Add February 28, 2006 Page 2 contemplated. D. That the site physically is suitable for the proposed density of development. E. That the design of the subdivision or the proposed improvement is not likely to cause environmental damage. F. That the design of the subdivision or the type of improvements is not likely to cause health problems. G. That the design of the subdivision or the improvements will not conflict with easements of record or with easements established by judgment of court. H. That completion of the proposed development of the subdivision can be completed in a timely manner so as not to cause an economic burden upon the City for maintenance, repayment of bonds, or similar burden. I. That the subdivision has been properly planned for possible solar energy system use within the subdivision or as it relates to adjacent property. (Refer to City Handbook on Solar Access). J. That the design of public improvements for the subdivision is compatible and consistent with the platting or approved preliminary plat on adjacent lands. K. That the subdivision is in compliance with those standards set forth in that certain document entitled "City of Eagan Water Quality Management Plan for the Gun Club Lake Watershed Management Organization" which document is properly approved and filed with the office of the City Clerk hereinafter referred to as the "Water Quality Management Plan". Said document and all of the notations, references and other information contained therein shall have the same force and effect as if fully set down herein and is hereby made a part of this Chapter by reference and incorporated herein as fully as if set forth herein at length. It shall be the responsibility of the City Clerk to maintain the Water Quality Management Plan and make the same available to the public." BACKGROUND/HISTORY The subject site is not platted. Triangular shaped Outlot A Elementry School 18 to the south of the lot is also owned by the applicant. EXISTING CONDITIONS There is an existing single family home, built in 1953, a large detached garage, built in 1992, a shed, and a cement slab present. The site is heavily wooded and backs up to Pond LP-27. S3 Planning Report -Gustafson Add February 28, 2006 Page 3 SURROUNDING USES The subject site abuts other single family residential uses that are zoned R-l, single family residential and guided Low Density residential. Red Pine Elementary school is located to the south (across Red Pine Lane). EVALUATION OF REQUEST Compatibility with Surroundin~ea -Additional single family lots appear compatible with the area. Density -The Comprehensive Land Use Plan has the subject site Guided Low Density Residential 0-4 units an acre. As proposed the subdivision will be 1.15 units an acre. Lots -The Lot size requirement in an R-1 zone is 12,000 square feet; proposed Lot 1 is 30,281 square feet and Lot 2 is 73,334 square feet. Shoreland Overlay -The subject site is within the Shoreland Overlay of Fitz Lake, a General Development Lake. The Iots are subject to 25% maximum impervious surface limitations. As proposed both parcels will have an impervious surface of less than 10%. Setbacks -The R-1 setbacks apply to each lot. The principal buildings on each lot meet the applied setbacks. The existing garage on proposed Lot 2 is set back 16 feet from Red Pine Lane. A 30 foot setback is required; however, the garage was built (1992) prior to the construction of Red Pine Lane (1994). As such, the garage was a legal nonconforming setback. The City should memorialize this situation and grant a variance to the setback of 16 feet. Accessory Structure -There is a shed located on proposed Lot 1, the applicant indicated in the narrative that this will be moved to Lot 2. Two detached accessory structures are permitted in the R-1 district, when an attached accessory structure is not present the detached buildings can not exceed 800 square feet. The existing detached garage built in 1992 is 1,120 square feet, and the existing shed is 100 square feet which requires a Variance to the allowed accessory building area. Grading/Storm Drainage -The preliminary grading plan is acceptable. The site is heavily wooded and generally slopes to the west and south. The proposed grades for the new house and driveway on Lot 1 generally match the existing grades. Utilities -The existing house on Lot 2 is not connected to the City sanitary sewer and water main system. Existing sanitary sewer and water stubs of sufficient size, depth and capacity are available from Red Pine Lane for service connection for proposed Lot 1 and the existing house on Lot 2. The house on Lot 2 should be connected to the City sanitary sewer and water systems in conjunction with this development. A manhole should be constructed on the sanitary sewer stub and a hydrant should be constructed on the water main stub, in accordance with City engineering standards. Sy Planning Report -Gustafson Add February 28, 2006 Streets/ Access/ Circulation -The driveway access for the existing house on Lot 2 will remain onto Red Pine Lane, and access to Lot 1 access is also proposed onto Red Pine Lane. Water Ouality/Wetlands -The proposed subdivision is located adjacent to City Pond LP-27, which is classified in the city's water quality management plan as Class IV -Wildlife Habitat and which is considered a public waters wetland (#19-0307W) by the Minnesota Department of Natural Resources. These designations help to underscore the relative quality and value of this pond. Through this proposed subdivision, however, the applicant is not proposing any impacts to the pond. Because conservation easements were established on lots alongside the pond in the Finch Place subdivision that is adjacent to this parcel, City staff requested the Gustafson's to consider the possibility of assigning similar easements to the two new lots in exchange for a waiver of the water quality cash dedication fee. Mr. and Mrs. Gustafson declined to pursue any such program at this time. As part of Park Dedications requirements City Officials could require a conservation easement and a credit can be given. Due to the size and nature of this subdivision, water quality ponding is neither necessary nor feasible. To meet the City's water quality requirements, therefore, a dedication of cash in lieu of ponding is appropriate for this development. Tree Preservation - An individual tree preservation plan for Lot 1 should be submitted at the time of building permit. Parks and Recreation -The Advisory Parks and Recreation Commission reviewed this item on their consent agenda at the regular meeting of February 16, 2006 and recommended approval with an additional recommendation to add a conservation easement over the pond in the 30 foot buffer area. SUMMARY/CONCLUSION The applicant is proposing to subdivide 2.38 acres to create 2 lots. Both lots comply with R-1 standards and meet Shoreland Overly district requirements; however the existing garage on Lot 2 requires a variance due to the location, the shed and garage will require a variance to the accessory structure size limit; the garage and shed exceed 800 square feet. When the garage was constructed in 1992 it met setback requirements and size requirements; the installation of Red Pine Lane in 1994 created a nonconforming setback for the garage. The existing house on Lot 2 is not connected to the City sanitary sewer and water main system. Existing sanitary sewer and water stubs of sufficient size, depth and capacity are available from Red Pine Lane for service connection for proposed Lot 1 and the existing house on Lot 2. The house on Lot 2 should be connected to the City sanitary sewer and water systems in conjunction with this development. SS Planning Report -Gustafson Add February 28, 2006 Paee 5 Staff suggested the applicant place conservation easements around the pond; the applicant has decided not to implement a conservation easement at this time. The Advisory Park and Recreation Commission has recommended a conservation easement be placed in the 30' buffer around the pond. Tree preservation will be addressed at the time of building permit for Lot 1. ACTION TO BE CONSIDERED To recommend approval of a Preliminary Subdivision (Gustafson Addition) of 2.38 acres to create 2 single family parcels for property located at 543 Red Pine Lane in the SE'/4 of Section 36. If approved, the following conditions shall apply: 1. The developer shall comply with these standards conditions of plat approval as adopted by Council on February 2, 1993: A1, B1,4, C1, D1, E1 2. The property shall be platted. 3. Both lots are subject to a maximum of 25% impervious surface. 4. The shed located on Lot 1 shall be moved to Lot 2 prior to building permit being issued for Lot 1. 5. The existing house on Lot 2 and the future home on Lot 1, shall be connected to the City sanitary sewer and water systems in conjunction with this development. 6. All existing septic and well systems shall be abandoned according to Dakota County rules and regulations. 7. The developer shall construct a manhole on the sanitary sewer stub and a hydrant on the water main stub from Red Pine Lane, in accordance with City engineering standards. 8. A cash dedication in lieu of on-site water quality ponding should be required for this development. 9. An individual tree preservation plan shall be submitted at time of building permit for Lot 1. To recommend approval of a 16 foot Variance to the setback from public right-of--way for the existing garage on newly created Lot 2, Block 1, Gustafson Addition. If approved the following conditions shall apply: 1. The variance only applies to the existing 1,120 square foot garage. To recommend approval of a Variance to the building area limitation of 800 square feet for detached buildings for the existing 100 square foot shed and 1,100 square foot garage for Lot 2, Block 1, Gustafson Addition. If approved the following conditions shall apply: If within one year after approval, the variance shall not have been completed or utilized, it shall become null and void unless a petition for extension has been granted by the council. Such extension shall be requested in writing at least 30 days before expiration and shall state facts showing a good faith attempt to complete or utilize the use permitted in the variance. S6 STANDARD CONDITIONS OF PLAT APPROVAL A. Financial Obligations 1. This development shall accept its additional financial obligations as defined in the staff s report in accordance with the final plat dimensions and the rates in effect at the time of final plat approval. B. Easements and Rights-of--Way 1. This development shall dedicate 10-foot drainage and utility easements centered over all lot lines and, in addition, where necessary to accommodate existing or proposed utilities for drainage ways within the plat. The development shall dedicate easements of sufficient width and location as determined necessary by engineering standards. 2. This development shall dedicate, provide, or financially guarantee the acquisition costs of drainage, ponding, and utility easements in addition to public street rights-of--way as required by the alignment, depth, and storage capacity of all required public utilities and streets located beyond the boundaries of this plat as necessary to service or accommodate this development. 3. 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. 4. This development shall dedicate adequate drainage and ponding easements _ to incorporate the required high water elevation plus three (3) feet as necessitated by storm water storage requirements. C. Plans and Specifications 1. All public and private streets, drainage systems, and utilities necessary to provide service to this development shall be designed and certified by a registered professional engineer in accordance with City adopted codes, engineering standards, guidelines, and policies prior to application for final plat approval. 2. A detailed grading, drainage, erosion, and sediment control plan must be prepared in accordance with current City standards prior to final plat approval. 3. This development shall ensure that all dead-end public streets shall have a cul-de-sac constructed in accordance with City engineering standards. s~ 4. A separate detailed landscape plan shall be submitted overlaid on the proposed grading and utility plan. The financial guarantee for such plan shall be included in the Development Contract and shall not be released until one year after the date of City certified compliance. D. E. F. G. H Public Improvements I. If any improvements are to be installed under a City contract, the appropriate project must be approved by Council action prior to final plat approval. Permits 1. This development shall be responsible for the acquisition of all regulatory agency permits required by the affected agency prior to final plat approval. Parks and Trails Dedications 1. This development shall fulfill its park and trail dedication requirements as recommended by the Advisory Parks Commission and approved by Council action. Water Ouality Dedication 1. This development shall be responsible for provided a cash dedication, ponding, or a combination thereof in accordance with the criteria identified in the City's Water Quality Management Plan, as recoininended by the Advisory Parks Commission and approved by Council action. Other 1. All subdivision, zoning, and other ordinances affecting this development shall be adhered to, unless specifically granted a Variance by Council action. Advisory Planning Commission Approved: August 25, 1987 G:Engineering/Forms/Standard Conditions of Plat Apprtyval City Council September 15, 1987 Revised: July 10,1990 Revised: February 2, 1993 ~~ a Location Map Eagan Boundary ~ Right-of-way ~ParcelArea Park Area Building Footprint ° ~~p 9 9 4 9 9 P 53 0 ~o C~ o ~+~ O O ,I d a d a e~ a U 4 0 8 o a 0 O a 94PP fl ~ ~ ~ o ~ Q e 0~ Op ~ pa II a a e, o. B m ® o~ ©rc~ p ~ 4~ ~ ~ 0 0 O a po dO ~ Op~ O P D Q ~- a4 a 9 0 4 e~ 0 0 A 8 Q Ap~^ 4 ~ o.., c® r7 p - B a- (.~ 4D O qOQ 00 fl~ f3 9 d ~ 9 a 8 $ ~ - ~ OoF39 o D p o a - ~ o. - EQ d ~c9 1© Ca . L ca q; ~ 0948 d' g d• ., O O as adp o 0 ~ ~' :. c ®o a ®. c ~ ~ Q 9 - e g o - p ~. ~ A ~ ,~ o o Scebject Site d ~ ® d O ~ O ~ O A B o ~ Q c 9 o p O c 3 • a ~ o ~ * r ~ it Q L~ a ~6 q D 9 {~ 6 t7 ~ . ~ (~ ~ff ~ Q C7 g d 9 ~ Q v ~ o - .~ 8 0 a B 9 b D O a _o a~ ~ 0 0 0 a 1000 0 1000 2000 feet Development/Developer: Rick Gustafson Application: Preliminary Subdivision Case No.: 36-PS-01-®1-06 City of E~~~ Map Inp cYew 3.l. Parcel base map data provided ry Offl of GIS and Is anent as of Apol 2005 THIS A i5 I ENDED FOR REFERENCE USE ONLY ~ N W~i: The City of Eagan a d ota y do not guarantee the aoeuraey of this information and are S Gommunky Dw.lopmant D.paRm.nt responsible for errors or omissions. Current Zoning and Comprehensive Guide Plan Land Use Map Gustafson Preliminary Subdivision Case No. 36-PS-01-01-06 Zoning Map ~ P 0~ a 0 ~O k tiS J y0 ~~ i Current Zoning: A Location R-1 Single Family Residential y rD .~ r'~ R-~ _~ ~~ ,~P 4 -1 NB NB ~.~ PF f:ea a a0a 1fe0 Feet Comprehensive Guide Plan Land Use Ma ~~ ~? p eDm D ,~r D' D Location Current Land Use Designation: D Low Density Residential ro•' L ya• s 2r ,~~' ~~ y` LD LD QP RC IND P coo o coo +zoo Fe.e ~- parcel b map Informa0on provided by Dskota County Land Survey Department June 2003. N o In/orm.tlon maintained by Clty Stall. City of Eagan W >: T IS TENDED FOR REFERENCE USE ONLY Community Development Department The City of Ea and Da County do not guarantee the accuracy of this information. 5 0 0 r.+ ~~ ~r_ -.u w 1J.t E_ ? if E F! F ~t e![[~ "F! t~ ~ ~` C ~F ~~pti~ff~aw{E!ij~~~e~K ~~~~~cii e ~ a:°. E [ e '" F{ j E e{jF iEf E 0 ?1 # 1 ~ ~ ~ ~ ~ ~ ~ R a ;E Et~ ii f=i t 11 i ~ ~F~i~ ~ e -1 ~ . i fi gd- IF n to E ~ 3 ~ ~ ~ ~ ~ ~ d E FINC ; 1 ~ E ~ g ,s •E \ ~ ~~/ PLACE ~ ~ ~ _ ~ 2 ~ ~ 1 $ ~ • f i e xdFvati .e.r !! ~~ m ~ FE E t~tjt ; : E~E[ a ~' 1 E 1 i i 1 E ~I\ \ ~ \ 1 ~ ' • ~~ • (ectt[i€ t ~ItE O ' '4 .s.. t ~ F . ~' O i ~"~, ~~' `\RE~~\' ® Q\I~I '' .F-__~4 \~ \•\ \\~~ IE~ p~e~ b E i°~F ~ .~ \ \E4 1 i~ Q ~ ~ a FF ~ ~~e1 ~ IE ~" h, ~\ ~ \ ~E ~r- ~ E i E r.t\'~ 1~ ~~~~.,~ t E ! ~ 1 i i E F `~ o O ECS ~o~" -;, X11/ ~!~• 1 } ~F~E# i ~ 1 E 11 •w\ \•!'\~l,T<~-'~~ 1.~_I ~ ~~ a r ;;i '~ 1 gj# ~ ~ `~g '~! E~; v E E "~ 1 tE E ~~ELL tE 6.E~~-. ~ 1 \~ Fes' ~~~`~ e°_ ~ . 'E ~ ;• d ~ s ~ tTj r f ~r E •~•~j-F v ! ~t 4 ~ t~ ^' ~_ ~ ~ .. R p ~ ~ a, ~ f 1\ ~ ~E\ E '•' E >F \S~ -.rte _ ~ ,t ~ ~ < $ m . a. \ ~• 'E _ t!~ ! " 6~ ~~ w~e.•~ r..r[~ - s E i i Ei~~iF m Z i y / ! ! E ~ E ~I~i~~ W N e.r: ma.n .~ ...ern... f r n.eer ~ _ ~ E '• u W t f f r f 6 I t ;~5, v r3~7 E F t f t F I 1 r f ri f E E 6~ January 27, 2006 RE: Project Narrative Rick & Kim Gustafson 543 Red Pine Lane Eagan, MN 55123 Our project includes splitting a lot off of our properly that will be sold to a buyer for the purpose of building a single family home. We intend to do a remodel/addition on our existing home. Our timeline will be something like this: After City approval, we will look to secure a buyer for the new lot. Next will probably be installation of city sewer and water, followed by construction of the new house and the remodel/addition to our home. Most of our preliminary work and planning has been completed, so we aze ready to move forward with the project as soon as possible (Spring or Summer 2006). The shed that sits on the property will be moved to a new location on the lot of the existing house. The pad is composed of bricks that we used as a base for a picnic table and will probably be pulled out of the ground when the new house is built. The portion of the property to be sold that is currently referred to as Outlot A, Elementary School No. 18, was purchased from ISD 196 by Eugene and Deborah Finch on May 14, 2001, then sold to us (Rick and Kim Gustafson) from the Finches on July 12, 2001. The properly ID of the Outlot in the Dakota County records is 10-23610-010-00 and we aze recorded as the owners. When contemplating how to proceed with this project, we began with the idea of a subdivision of several homes, to the final decision of simply splitting off one additional lot. We love our land, and our desire to keep it as untouched as possible, while still being able to make some upgrades to our home-overrode the option to fill the land with several homes and road space. When we drew up the boundaries of the new lot, consideration was given to require the placement of the new home in an area that would be set back almost 100' from the pond. Additionally, we intend to include a legal restriction on the location of new construction in the contract for the new lot. This will be done to provide protection for the land (pond, oaks, etc.). I was asked in a letter from the City to comment in this narrative on possible thoughts to subdivide again in the future. When the lot that we aze desiring to subdivide was platted, we did take into consideration that we technically have enough land (according to minimum lot sizes) to add another home to this piece of property. With that thought in mind, we allowed for sufficient road-front space on the existing lot to meet current City requirements, should anyone ever request to add a third lot (where our detached garage is currently located). I can say that at this time, we have no desire to add a third home to this piece of property. If you have any additional questions, please contact us at 651-405-8704 or kimdgus(u~aol.com. Sincerely, < ,~ ~ ;~` ~~ Kim Gustafson, PEKE I C E D 1Aly 3~ 1 Property Owner 63 March 3, 2006 Attn: Eagan City Council Re: Gustafson Addition Ladies and Gentlemen: We would like to ask the City Council consider the approval our development proposal without a water conservation easement as a required condition. When we began the application for development process with the City, we were approached by city staffwith the option of adding the easement in place of paying the $2,500+ water dedication fee. We approached the idea with an open mind, but after learning how it would take control of land that we have maintained for several years out of our hands, we felt it was in our best interest to pay the fee. We were told that with our situation, the easement would not be a requirement of us. At that point, we didn't give the subject another thought. On the afternoon of Thursday, 2/16, we received a call notifying us that the issue was going to be discussed that evening at the Parks Commission meeting, just hours away. With little time to prepaze, we were blindsided at the meeting by neighbors who demanded that the easement be mandatory for us. They based their demand on the reasoning that since a water conservation easement was required when their pond-side homes were built on "Finch Place" in 2001, it should also be required of us. I am attaching a copy of the letter we submitted to the Eagan City Planning Commission on 2/27/06, which gives the history of the reasons that the easement was required of "Finch Place", and shows how our proposed development is a very different situation. When we presented our request to the City Planning Commission last Tuesday, it seemed to be agreed upon that indeed our situation was very different. Our addition of one lot to our land will leave everything within SO-60 feet of the pond virtually undisturbed. It was reported by_city staff that evening that our development would most likely have no detrimental effect on the water quality of the pond. As the Planning Commission discussed our situation, the focus turned to our trees. In the end, it seemed the reason the majority was swayed to vote to recommend the water conservation easement be included was to prevent anyone from cutting down trees. The logic behind that does not make sense or seem fair to us. In closing, we ask that this easement not be imposed if it really is not a requirement based on city code. We have tried to address why we feel the neighbor's comparison of our proposed changes to their development in 2001 is inaccurate, in the attached notes. Another azea of concern regazding the imposition of this easement is the possible decrease in value of our property, which I became awaze of today on a MN state website while I was researching conservation easement facts. I have attached a copy of that as well. Thank you for your. consideration of this matter. Yours Truly, Rick and Kim Gustafson 65~ February 27; 2006 Attn: Ewan City Planning Commission Ladies and Gentlemen: We would like to respectfully request the City of Eagan not impose the conservation easement on our property that was requested of the Parks Advisory Board by two of our neighbors. 7~`hese neighbors would like to compare the addition of our development proposal to the development of "Finch Place" (which includes their homes) in 2001, when actually, it is quite a different scenario. When "Finch Place" was planned and established in 2001, 12+ acres of woods and farmland was leveled and graded to make a new development of 20 homes. Hundreds of feet of thick forest was removed, some of it very close to the 30 foot wetland buffer area When the-lots were prepared for construction, at least four of the homes (including those of the neighbors who are requesting this restriction), were placed immediately on the edge of the wetland border area, and according to my notes from the Eagan City Planning Report on January 23, 2001, "grading of the backyards far seven of the proposed homes would disturb some of the 30-foot wetland buffer''. One of the environmental concerns that led to the restrictions placed on these neighbors' pond-side lots was encroachment and disturbance of the wetland buffer area due to the grading that was required to build these lots so close to the protected wetland. Our plans for the addition of this one lot to our properly will keep all new construction back at least 60 feet from the pond. (This will be a legal inclusion in the contract with the sale of the new lot because we want to preserve the land and the view to the immediate West of our house.) When the new lot was platted, we intentionally narrowed the dimensions as it approached to pond in order to keep the logical building spot of the new house a safe distance from several mature oak trees and the pond. The addition of this one home to onr,land will leave trees, established lawn and vegetation within 50-60 feet of the pond virtually UNDISTURBED. Any remodeling that we are planning for our own home will take place to the South and East of our current house (the pond is to the North). Our home is set back at least 50 feet from the pond. Our greatest hesitation at having this easement placed on our property is that the care of the land within this area of our property would be out of our hands. The area that would be affected has been maintained in its current state far the past 25 years (since 1981). This maintenance has included the care; pruning and monitoring of several Large trees (I counted 14 in the thirty foot pond- front buffer area, I 1 of them large Oaks). We have occasional bouts v•~ith a fungus on some of the Oaks, and were taught that one of the preventative measures for this is to carefully and conservatively keep the trees pruned so the air around them can freely circulate. We have always tried to used good sense when tending the land near the pond, we have never fertilized or used chemicals and we have always let several feet of vegetation grow natural at the edge of the pond. 6s At the beginning of our application for development process, the Eagan Ciiy Water Conservation Officer contacted us to see if we would meet with him to discuss the option of placing a conservation easement on our property. We approached the meeting with an open mind, desiring to learn what the easement would entail_ We chose to decline the easement, due to the restrictions it would place on our care of the property. We did discuss alternative options for returning more of the pond-front land to a natural state, and we would be very agreeable to a plan that would add some additional native wetland vegetation to this azea, without the full restrictions of an easement. Another note off the City Planning Report of January 23, 2001, states the developers of Finch Place were given the option of either: 1. Keeping a 30-wide buffer of undisturbed vegetation adjacent to the water boundary undisturbed before, during and after construction OR 2. Reestablishing disturbed buffer areas and institute wetland protection zones as covenants or deed restrictions with lots adjacent to the wetland. If we were given the same options, we would be able to fulfill #1, as we will not be disturbing anything within a 30 foot area of the pond. In closing, when we first discussed the possibility of this easement with the City, it was our understanding that it would be optional. At the Parks Advisory Board meeting, when the City Water Conservation Officer was asked if our development would have a detrimental effect on the pond, he responded that it would not. The comparison by neighbors of our situation to theirs is inaccurate, and a bit suspicious- I have notes from the June 2005 Parks Commission and City Council meetings where ane of the opposing neighbors requested to have some of his easement restrictions lifted. Thank you for your consideration of this matter. We love the property we live on, and it is our desire to have the freedom to continue to enjoy and care for it as we have for the past 9 yeazs. Yours Truly, Rick & Kim Gustafson 543 Red Pine Lane Eagan, MN 55123 Finding Permanent Protection Through Conservation Easements Molly Zrnder Zinr, MLA, Commuaicatiam Coordinator the natural habitat and property owner. Both parties or agenry when selling or gifting the property, and discuss the values of the land and design restrictions comply with all terms of the eazement. Why wnsider a conservation etisemend Arc you concerned about protecting Minnesota's lakeshorc, natural areas and the waters they impact? Do you own a piece of these fragile lands and hope co prorect them for fumrc generations? If so, you re not alone. Concerned citizens and organi7acions through- out Minncsou arc addressing These challenge through the development of wnservation easements. As we become increazingly aware of the threau co Minnesota's fragile lands and waters, we're also begin- ning to face unprecedented increase in property val- ues and taxes. While more than two-thirds of Minnesota's lakeshorc is privately owned by individu- als, this trend could indicate a tremendous impact on the future of Minnesota's shoreland. Increasing land value and razes are forcing some individuals to wnsider selling their shoreland property, despite the fear that a natural landxapc could quickly be developed into a large wmmercial or less natural property. However, many Minnesota property owners are now turn- ing to conservation easemcnu fnr the opporcuniry to protctt the natural habitat of their land, while maintaining the fiscal ability, for them- selves or their heirs, co continue living on that land. According ro the Minnesota Land Trust, "a wnscr- vadon easement is a set of restrictions a landowner voluntarily places on his or her property in order to preserve its wnservation values. The wnservation val- ue of the property and the restrictions created to pre- serve those values, along with the rights reserved by the landowner, are detailed in a legal document known az a conservation easement. This document is filed with the local county land rewrds." With over 2.6 million acre of protected lands in conservation easements across the United States, individual landowners are clearly beginning ro find the value in the permanent protection offered by conservation eazcmcnts. Easements are a viable option for property owners striving co protect their lakeshorq wetland, forest, agricultural or other natural lands. An easement is a binding contract, developed with the guidance of a conservation organization or government agenry assisting the landowner. The terms of the conservation easement are negotiated to meet the unique needs of to protect chose values. Various types of land use, such as agriculture or timber harvesting can usually wncin- ue, azdefined in the eazement terms. Additionally, some eazemenrs might require specific actions to ensure greater protection for a property's natural resources, such az a lakeshorc revegetation project. The conservation or government agenry is said to "hold" the casement, meaning they arc responsible for monitoring and upholding its terms. Finally, the wn- scrvacion organization or government agency does not have the right to use the property aside from monitor- ing easement terms once each year. In Perpetuity-Permanent Protection The majority of conservation casements arc held in perpetuity, meaning the land is permanently preserved and protected. While conservation casements with limited duration are possible under some conditions, when striving for permanent protection casements must be perpetual and many organiutions work only with pcrmancnc easements. When a property owner places a conservation ease- ment on their land thry retain ownership of the land; howcvu a perpetual eazement "runs with the cidc" and if sold, donated or bequeathed the easement terms must still be upheld. The property also main- tains its private status, allowing the landowner all associated rights of ownership. Yet, the mans of the casement require all land use by the property owner be wnsistent with easement conditions. Landowners engaged in a conservation easement maintain a variety of obligations. As with any proper- ty the landowner is responsible for land upkccp, maintenance, and paying taxis. Futthermorc, the landowner must notify the conservation organization or government agenry of any proposed changes, allow for annual monitoring visits, notify the organization Crunch the numbers A conservation easement may dramatically reduce a properties resale value, but it don not freae a proper- ty's increasing value. Moreover, whether a property is donated, sold or gifted, it may provide the landowner with sizable income or estate tax deductions. For example, the two properties below were appraised before and after donations of conservation easements to the Minnesota Land Trust bctwccnl994-1996. Appraised APPrais°d Potential value of value of income taz property before property after deduction ~a* easement for donor $348,000 $206,000 $142,000 $955,000 $486,000 $469,000 Landowners selling a conservation eaument proper- ty ro anon profit conservation organization tan also receive income tax benefits if sold below fair market value. Bequeathing a conservation easement can also provide landowners with a practical option for gifing property to their heirs, while avoiding debilitating estate [axes. Property owners engaged in a wnserva- tion easement and maintaining ownership of the land will also cxpcrience considerable reduction in their property value, thus impacting property taxes. Consult with a tax advisor to closely consider the numerous options involved with conservation casc- menrs in relation to your unique land and personal needs. Aside from the potential financial benefits a wnscr- vation eazcmcnt also offers the permanent protection of Minnesota's invaluable lands, and more specifically Minnesota's priceless Lakeshore and waters. Ofren the greatest values simply cant be measured in fiscal arms. Who will protect Minnesotas land and wattxsi' While the average number of homes per lakeshorc mile has increased from three in 1950 to 16.5 in 1999, the future of Minnuotas lands and waters truly lay in the hands of each individual shoreland owner. Today Minnesotans understand the ramifications of over-developed Lakeshore, over-used waters and hasty planning. However, so much of the land and water is still well protected. Innumerable private landowners throughout Minnesota have left their properties in a relatively nacunl state for decades. These protected lands and habitats dot every lake, forest and prairie around the state. Together each property can collec- tively contribute to sustaining Minnesota's invaluable natural habitats. Will these protected lands and waters be permanently preserved? The answer can be found in the decisions of each individual shoreland owner. Conservation Easement Organizations and Agencies. If you're interested 9n further exploring options for conser- Tba Nature Conservancy .vation easements on-your property contact oneof the fol- Todd. Holman,.Centrel MinnesotaCoordinator owing organiistlons: ([holrnan(t~tnc.org) 7163 Bear Road, Cushing, MN 56443 TAa Cont+erva0on Fund ~ -(218).575-303T` " -. Renay Leone, Upper Mississippi River Field Representative- 1000 Fdands of Mlnnasota (renayleone~earthlink.net) Lee Running, Executive Director :::6459 Smithtown Road (Ironnirig~1000fom.org) , '_ Excelsior;' MN 55331 ° 370 Shelby Avi:nue, Suite 300 '.(952) 4749189 St: Peel, MN 55102'. web-site: wwwa000fom:org Minnesota Land Trust,. SL Paul Office. (mnland~rnnland.org) Trust for Public Land 2356 UniversltyAverue Wes[, SuRe 290 Susan Schmidt St. PauI,;MN 5511d (susanschmidt(a~tpl.txg) (651)64.7=9590'phone °26tD UnNersityAvenue, Suite 300 (651)647-9769 fax. - St. Paul,. MN 55114 websRe: www.mnland.org (551,) 917-2250'ext. 317 sM aro,w~aa &rr is, the water you depend on. Engineers Sdentists ASSOCIATES Surveyors www.AyresAssoclat es. tom Dulutft, MN (218) 722-7185 Walksr, MN (218) 517-0881 6~ Agenda Memo March 6, 2006 Regular City Council Meeting B. ORDINANCE AMENDMENT -CITY CODE CHAPTER 10.12 PERTAINING TO THE LICENSING FOR KEEPING CARRIER PIGEONS WITHIN THE CITY ACTION TO BE CONSIDERED: To approve (or deny) an amendment of City Code Chapter 10.12 pertaining to licensing for keeping carrier pigeons with the City. FACTS: • The Eagan City Code Section 10.12 provides conditions under which a license for the keeping of pigeons can be issued. The City was approached with an application for a permit for this purpose under the ordinance. This application was considered by the City Council at its meeting on February 21, 2006. The Council acted to deny the permit because the applicant had not provided documentation regarding the registration of the birds and the corresponding banding or marking of the birds to be kept, which is a requirement for a permit. • In the course of reviewing the information related to the application and receiving input from neighboring property owners regarding the consequences of having pigeons being kept in the neighborhood, the City Council indicated that those issues call into question whether it is appropriate to permit the keeping of carrier pigeons in neighborhoods with homes in single family or higher residential densities. • On that basis, the Council directed staff and the City Attorney to prepare a City Code amendment that would limit the locations in which such permitting may be considered to Agricultural (A) zoned properties of five acres or more. All other requirements for documentation, structures and animal management would remain the same. ATTACHMENTS: • Draft ordinance amendment on pages ~'tlavagh' 6 sr ORDINANCE NO. 2ND SERIES AN ORDINANCE OF THE CITY OF EAGAN, NIlNNESOTA, AMENDING EAGAN CITY CODE CHAPTER 10 ENTITLED "PUBLIC PROTECTION, CRIMES AND OFFENSES" BY AMENDING SECTION 10.12, SUBD. 7(B), REGARDING REGULATION OF HARBORING CARRIER PIGEONS; AND BY ADOPTING BY REFERENCE EAGAN CITY CODE CHAPTER 1 AND SECTION 10.99. The City Council of the City of Eagan does ordain: Section 1. Eagan City Code Chapter 10 is hereby amended by changing 10.12, Subd. 7(B) to read as follows: B. Carrier pigeon permit required. It is unlawful for any person to keep, harbor, maintain, possess, or otherwise control any carrier pigeon (1) in any zoning district. except a~icultural district provided the property is five or more acres; and (2) without first obtaining a permit therefor from the city. The fees for a permit hereunder shall be established by the council, by resolution, from time to time. Each permit hereunder shall be issued for a period of one year from its date of issuance. Section 2. Eagan City Code Chapter 1 entitled "General Provisions and Definitions Applicable to the Entire City Code Including Penalty for Violation"' and Section 10.99, entitled "Violation a Misdemeanor" are hereby adopted in their entirety by reference as though repeated verbatim. Section 3. Effective Date. This ordinance shall take effect upon its adoption and publication according to law. ATTEST: CITY OF EAGAN By: Mira Pepper Its: Deputy City Clerk Date Ordinance Adopted: Date Ordinance Published in the Legal Newspaper: City Council By: Pat Geagan Its: Mayor 6% Agenda Information Memo March 6, 2006 Eagan City Council Meeting VIII. LEGISLATIVE/INTERGOVT AFFAIRS A. DIFFLEY MARKET PLACE -ACCESS UPDATE ACTION TO BE CONSIDERED: NO Action...Informational update only. FACTS: • On February 21, the City Council directed staff to submit a request to the Dakota County Plat Commission for consideration of granting a variance to the County's access spacing guidelines to allow a 3/4 access median break at the main entrance to the proposed Diffley Market Place development east of Lexington Ave. and south of Diffley Rd. • This request was submitted on February 23 and scheduled on the County Plat Commission's March 6 agenda. If the Plat Commission recommends approval, it will then be forwarded to the County Board's Physical Development Committee for formal consideration on March 14. • If the Plat Commission recommends denial, it will be returned to the City with comments for the City's consideration of revisions or filing a formal appeal to the County Board. If this happens, the item will be placed on the Council's March 21 agenda for formal discussion and consideration of options. • If the variance receives a favorable recommendation, it is anticipated that the County Plat Commission will also take similar action on the original Final Plat application as well. • The Public Works Director will provide an oral update at the Council meeting regarding the Plat Commission's action(s) earlier in the day. ATTACHMENTS: • Variance request letter and graphic, pages ~~ through _~_ '10 Pnr cEncAN February 22, 2006 Mayor Mr. Todd Tollefson PEGGY CARLSON Dakota County Surveyor CYNDEE FIELDS County Plat Commission -Secretary M1KE MAGIJ(RE Dakota County Government Center 14955 Galaxie Avenue MEC ru.l EY Apple Valley, MN 55124 Council Members Re: Diffley Market Place Tt-loMAS HEDGES _ Request for Variance to Access Spacing Guidelines City Administrator Dear Mr. Tollefson, Municipal Center. As you recall, the Dakota County Plat Commission (DCPC) met Oct. 31, 2005 3830 Piloc Knob Road to review a prelit11i11ary plat for a proposed development commonly referred to as tl~e Diffley Market Place located adjacent to and south of County Rd. 30 L•.igan, MN 55122-1897 (Diffley Rd) just east of County Rd. 43 (Lexington Ave.). The site plan Phone: 651 G75 5000 submitted with that earlier application proposed a full access signalized Fax: G51 G75 5012 intersectioli at the location of the current median break on Co. Rd. 30 and the iDD: G51.454 8535 elimination of a driveway connection to Daniel Dr. The DCPC subsequently did not approve the preliminary plat as submitted and offered some comments for ftlture consideration by the City and developer. Maintenance Facility: 3501 Coachman Point Your letter of Nov. I informed the City of Eagan that the DCPC believed "it would be advantageous to allow a large variance to the current spacing Eagan, MN 55122 gttidelines by permitting the developer to build a ttuee-quarter access.. ,and to Pltonc: G51.G75 5300 keep the existing driveway to Daniel Dr. for local residential access allowing Fax: GS1.G75 5360 for safe movements into the commercial site while avoiding trips onto the County road system.." It further stated that the development plan needed "to be TDD: G51 454.8535 reevaluated..... to minimize trips on Daniel and best utilize Lexington..," ~vww.ciryofcagan.com On February 21, the City Council reviewed these issues and coneertls in considerable detail and looked at numerous alternatives on how to best address the County's desires, the development's needs and the adjacent resident's concerns. We are please that we believe that a revised site plan has been created that seems to address all stakeholder interests to a reasonable and 7HE LONE OAKTREE acceptable level. The symbol of strength and grotvtlt in our community ~~ Diffley Market Place Page 2 The enclosed site p)an shows the implementation of the referenced '/, access restriction entrance to/from Diffley Rd., and it provides for a connection to Daniel Dr. Although the Daniel Drive cotutection is designed as an "entrance only" movement, we believe that this truly addresses the County's concerns regarding safe movements into the site for local residential access while minimizing multiple left tents from Daniel onto the County road system. This outbound restriction from the development to Daniel Dr_ also forces the internal traffic towards the Lexington Ave. access locations as desired by everyone. Therefore, the City of Eagan would like to formally request a variance to the Cowtty's current spacing guidelines to permit a '/~ access to/from County Road 30 and that the County approve the preliminary plat for Diffley Market Place accordingly.. I will be available to answer any questions and/or provide additional information either prior to or at your scheduled meeting of March G. Thank you for your timely and favorable consideration of this request. Sincerely, ' ~ ~ / Thomas A. Colbert, P.E.. Director of Public Works Enc: Site Plan Cc: Mayor and City Council Tom Hedges, City Administrator Mike Ridley, City Planner Russ Matthys, City Engineer ~z Y W '~,vZ ~_ 15"_ ~~ ~~O is ~ ` ~~ rf 1 ~ ~ ~ 0.' /~ ~ . I~tft E U 4 3~ v 45` 4 ; 3 i~ d i e 1. ~f ~! ~ ~ 3 ~ 3k }}N ~ F~ ~L C~c] ~_ K A ~ ! ~ILa Q e v Z W ~ i i6 jf~~{ Y Y' ~'G ~ • a; F ~ S Y :.. _ . t ... ,, i' ~ 6 .. ,i U Q L 1 1\ _ `!t e s -- a ~i _ h`_ ~ / ~ hM ~j4 /~~n e ~~ 0~y. ,e - ~o ~~ ~i ri t, i ~~9`~ 1- d ~_` _ ~~~~~ G ~. ~ ~O O f 1~ --~----Q----- ~~~ k 1 ail ~ I~.I Y g k~$ E k . m ~ i' O_ p_~i=- _ _ _ t -- - ~ ' ~ ~~~ 6 C~3 ~~~ ~ ~ `' ~ A ~\ ® I t ~ ~ ~ ~ e, ~ ® ~^ t/ __~- ~~ C~ - ,~~i~ .y _ ~. .. .. s `o Yx r 3i ~ Eg ~ 'm I I k ~, A i'.~ I O C ~~7 ~ __- ~ / ~ ~ _ ~~o a _ ~ - N ~,~~d O O _ O s~~~ _ ~..iCp C ~ i ~9< g~8~m S~± k ~ ~~ O C~ D ~ a. _f.T~L.. 6 ~I I ~ ~ a II ~u N ,~ - `Ff ., ~.. is C. '~Q. I I_f ~<H i I 1' -~~~\\ Jb/_ :1.01 fi0.C4S ~i - ~r ._. _. - c: JI Y17. .._ .. c,O„.. !/P'L y/ 19'N91 GG 7 ~ .- OI,GO.LOS' . `/ i ~ -. ",: xi ' a ~ e r ~~ i! 3 4 Y w ~ ~~ ~ ~ ~ ppya 5~ t n g~g ~ z ! 2 j i y ju ~ t ~~t i ~ r ~~~ s '~ . _ E!! Y ~.. i ' :. '~ r I n . t r ~ >1 " ~ X~ 6 > ~. e ~ ~ 1. i t ~ 6 ~ .~ ff V Y. 3 Z ,~, R ~ a gy J i 37{ 9 3 ! t kf ~r N0. f A . ~ ~ ~9 e; ;t 4tt~p p .: = , S ! /~ ~ 1 f a 1 l O .a ~ks~i `I ~~ ~~ AGENDA CITY OF EAGAN REGULAR MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY EAGAN MUNICIPAL CENTER MARCH 6, 2006 A. CALL TO ORDER B. ADOPT AGENDA /~ ~SC. APPROVE MINUTES V D. OLD BUSINESS p~~ 1. NORTHEAST EAGAN REDEVELOPMENT DISTRICT -Adopt p 00 Findings of Fact, Conclusions and Resolution to Approve the r Development Agreement between the City and MG Eagan for the Redevelopment of the Area Bounded by 35E, 494 and Blue Gentian Road E. NEW BUSINESS 1. CEDAR GROVE REDEVELOPMENT DISTRICT -Public Hearing to ~~ Consider the Use of Eminent Domain to Acquire the Cedarvale Mall at the Request of its Owner, Cedar Grove Properties, as Outlined in the Cedar Grove Redevelopment TIF Development Agreement between the City and Schafer Richardson - To be continued to March 21, 2006 F. OTHER BUSINESS G. ADJOURNMENT ~~ Agenda Information Memo Eagan Economic Development Authority Meeting March 6, 2006 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 February 21, 2006 EDA meeting as presented or modified. ATTACHMENTS: • Minutes of the February 21, 2006 EDA meeting on pages ~1~~~•/• ~s MINUTES OF A MEETING OF THE EAGAN ECONOMIC DEVELOPMENT AUTHORITY Eagan, Minnesota February 21, 2006 A meeting of the Eagan Economic Development Authority was held on Tuesday, February 21, 200b at the Eagan Municipal Center. Present were President Geagan, Commissioner Fields, Commissioner Carlson, Commissioner Tilley, and Commissioner Maguire. Also present were Executive Duector Hedges, Community Development Director Hohenstein, City Planner Ridley, Director of Public Works Colbert, and City Attorney Dougherty. ADOPT AGENDA It was noted that item number two under New Business relating to a public hearing to consider the use of eminent domain to acquire the Cedarvale Mall will be continued to March 6, 2006, due to an error in the published notice for the item. Commissioner Fields moved, Commissioner Tilley seconded a motion to approve the agenda as amended. Aye: 5 Nay: 0 APPROVE MINUTES Commissioner Fields moved, Commissioner Tilley seconded a motion to adopt a resolution approving the minutes of the February 7, 2006 meeting as presented. Aye: ~ Nay: 0 OLD BUSINESS NORTHEAST EAGAN REDEVELOPMENT DISTRICT Community Development Director Hohenstein reviewed the history of the acquisition efforts in the area and the preparation of the development agreement between the City and McGough that was considered at the public hearing on November 1, 2005. He stated that the Council direction at that time was to authorized the preparation of findings of fact for approval of the agreement, provided that the developer exhaust good faith efforts for acquisition of the remaining properties in that area before final adoption of the findings. He stated that the purpose of the business item was to provide an update to the City Council on the steps that had been taken since the November meeting. Hohenstein introduced Greg Miller, McGough Development, who provided an update on efforts to acquire the remaining properties anticipated to be included in the McGough development project in the Northeast Eagan Redevelopment District. Mr. Miller indicated his company had acquired one additional property in the area since November. He stated that he also had commissioned an appraisal for purposes of making updated '76 offers on the properties, submitted those offers to the property owners and forwarded them a follow up letter to ask that they respond to his offers. Five property owners expressed their opinions regarding the process to date and their perceptions of the value of their properties compazed to the offers that have been made for them by McGough. Commissioner Carlson stated she felt that it was time for the City to become involved in the acquisition discussions. She said that the private acquisition process had exhausted itself. Commissioner Maguire stated that the process will not move forwazd if the property owners will not make a counteroffer. He said the developer and remaining property owners had reached an impasse and it was time for the City to take the next steps. President Geagan and the other Commissioners agreed. Hohenstein clarified Commissioner Fields moved, Commissioner Tilley seconded a motion to direct staff to bring the findings of fact, conclusions and resolution to approve the development agreement between MG Eagan (McGough) and the City for the redevelopment of the Blue Gentian azea back to the EDA for consideration at its meeting of March 6, 2006. Aye: 5 Nay: 0 NEW BUSINESS CEDAR GROVE REDEVELOPMENT DISTRICT -PUBLIC HEARING TO CONSIDER AN AMENDMENT OF THE TIF DEVELOPMENT AGREEMENT AND TO CONSIDER THE SALE OF CITY OWNED PROPERTY TO U.S. HOMES / LENNAR FOR PRIVATE DEVELOPMENT IN THE NICOLS RIDGE PROJECT AREA Community Development Director Hohenstein discussed a proposed amendment to the TIF Development Agreement and consideration of city owned property to U.S. Homes/Lennaz. President Geagan opened the public hearing. There being no public comment, he closed the public hearing and turned discussion back to the Commission. Commissioner Cazlson moved, Commissioner Fields seconded a motion to approve the findings of fact, conclusions and resolution to sell four City owned pazcels as described in the resolution to US Home Corporation for incorporation in the development of the Nicols Ridge project within the Cedaz Grove Redevelopment District. Aye: 5 Nay: 0 ~~ CEDAR GROVE REDEVELOPMENT DISTRICT -PUBLIC HEARING TO CONSIDER AN AMENDMENT OF THE TIF DEVELOPMENT AGREEMENT AND TO CONSIDER THE SALE OF CITY OWNED PROPERTY TO U.S. HOMES / LENNAR FOR PRIVATE DEVELOPMENT IN THE NICOLS RIDGE PROJECT AREA Community Development Director Hohenstein noted that the item had been continued to March 6, 2006 during the adoption of the EDA agenda. John Ludewig, expressed an interest to speak to the item. The City Attorney clarified that comments could be taken in advance of the public hearing if the Council wished. President Geagan asked Mr. Ludewig to come forward. Mr. Ludewig indicated that he is a resident of Apple Valley, but a member of Bally's Fitness Center at the Cedarvale Ma11. He said that he appreciates City efforts to relocate businesses currently in the Cedar Grove redevelopment area, but wishes that the City could preserve or relocate Bally's for the benefit of its members. He said that the developer should include a comparable fitness center in its redevelopment plans so people like himself could continue to have the benefit of low cost membership in the club. President Geagan thanked him for his comments. CEDAR GROVE REDEVELOPMENT DISTRICT PURCHASE AGREEMENT FOR BUILDING D PROPERTY OF THE CEDARVALE PROFESSIONAL BUILDINGS (EAGAN EYE CLI1~iIC), 3908 CEDARVALE DRIVE Community Development Director Hohenstein discussed the proposed purchase agreement for Building D Property of the Cedarvale Professional Buildings. Commissioner Fields moved, Commissioner Tilley seconded a motion to adopt a resolution to approve a Purchase Agreement for Building D Property of the Cedarvale Professional Buildings (Eagan Eye Clinic}, 3908 Cedarvale Drive. Aye: 5 Nay: 0 CEDAR GROVE REDEVELOPMENT DISTRICT PURCHASE AGREEMENT FOR AVVR (LUNDEEN) PROPERTY, 3994 CEDARVALE DRIVE Community Development Director Hohenstein discussed the proposed purchase agreement for the Lundeen property at 3994 Cedarvale Drive. Commissioner Tilley moved, Commissioner Fields seconded a motion to adopt a resolution to approve a Purchase Agreement for the AVVR (Lundeen) Property, 3994 Cedarvale Drive. Aye: 5 Nay: 0 ~~ SOUTHEAST EAGAN STUDY AREA AMENDMENT OF SERVICE AGREEMENT BETWEEN THE CITY AND LHB, INC. TO COMPLETE ANALYSIS OF PROSPECTIVE REDEVELOPMENT/RENEWAL DISTRICT BOUNDED BY HWY 3, RED PINE LAND, BISCAYNE AVENUE AND GUN CLUB ROAD Community Development Director Hohenstein discussed a proposed amendment to the service agreement between the City and LHB, Inc. to complete the analyses of a prospective Redevelopment or Renewal District. Commissioner Carlson moved, Commissioner Tilley seconded a motion to approve an amendment of the service agreement between the City and LHB, Inc. to complete the analysis of a prospective Redevelopment or Renewal District bounded by Highway 3, Red Pine Lane, Biscayne Avenue and Gun Club Road. Aye: S Nay: 0 OTHER BUSINESS There was no other business. ADJOURNMENT Commissioner Carlson moved, Commissioner Tilley seconded a motion to adjourn the meeting at 9:30 p.m. Aye: S Nay: 0 ~~ Agenda Memo Eagan Economic Development Authority Meeting March 6, 2006 1. NORTHEAST EAGAN REDEVELOPMENT DISTRICT -ADOPT FINDINGS OF FACT. CONCLUSIONS AND RESOLUTION TO APPROVE THE DEVELOPMENT AGREEMENT BETWEEN THE CITY AND MG EAGAN FOR THE REDEVELOPMENT OF THE AREA BOUNDED BY 3SE. 494 AND BLUE GENTIAN ROAD ACTION TO BE CONSIDERED: To approve or deny Findings of Fact, Conclusions and Resolution to approve the Development Agreement between the City and MG Eagan for the acquisition of properties and redevelopment of the area Bounded by 35E, 494 and Blue Gentian Road. FACTS (New Information in Bold): • The City has taken steps to bring about the redevelopment of the Northeast Eagan 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 azea. • The City has been in discussion with the McGough Development regarding the redevelopment of the portion of the district that lies between Blue Gentian Road and the I-494/I-35E interchange for the possible construction of a multi-story class A office building. Under the TIF development plan's general terms, staff and the developer have negotiated a draft development agreement to be considered by the EDA and City Council. • McGough Development has begun to acquire and assemble properties in the redevelopment area. Several properties have yet to be acquired and their acquisition is expected to be necessary for the successful redevelopment of the overall site. • The development agreement covers issues including the level of TIF assistance that may be provided to the developer and the potential for the developer to request that the City use eminent domain to acquire the remaining parcels upon presentation of evidence of good faith efforts to do so. In cases in which property may be acquired for resale to a private entity and in which eminent domain may be necessary to do so, the local unit of government must hold a public hearing to take testimony and to make findings as to the public purpose of entering into the agreement. ~d • At its meeting of September 20, 2005, the EDA and City Council scheduled a public hearing for its meeting of November 1, 2005 to consider the development agreement. Notices were properly mailed and published. • At its meeting of November 1, 2005, the EDA/City Council held a public hearing to consider approval of the TIF Development Agreement between the City of Eagan and MG Eagan, the entity of McGough Development that intends to undertake the development and redevelopment of the portion of the Redevelopment District between Blue Gentian Road and the Interstate freeways. • At that time, McGough had acquired eleven of the properties in the area, but had not reached agreement with the remaining five property owners for acquisition of their properties. Those properties aze commonly known as the RayMaz, the Sandford, the Pavlicks, the Reilings and the Marvel Eggum Estate properties. As part of the public hearing background, the developer provided documentation of his efforts to acquire those properties. • As an outcome of the public hearing on November 1, the EDA and City Council directed preparation of findings of fact, conclusions and resolution to approve the development agreement for their consideration at a subsequent meeting, but also directed McGough to take additional steps to attempt to acquire the remaining properties directly, before the EDA and City would take final action in that regazd. Final approval was to be based on a finding that the developer and the property owners had undertaken additional reasonable efforts to buy and sell the property and that the EDA would then consider using eminent domain to acquire properties that could not be acquired by the developer. • Since that time, staff coordinated a meeting involving McGough, the property owners, the City Attorney and the City's Financial Consultants to discuss the Council's direction and encourage the parties to proceed with further negotiations. In follow up, McGough has performed an appraisal, made revised offers to the owners of the remaining properties and has acquired the RayMaz property. Other property owners have corresponded with McGough, but no additional sales have been reported as of the date of packet preparation. • The City Attorney and Bond Counsel have advised that the EDA and Council can take action up to six months following the public hearing, but would need to renotice and hold a new public hearing if the decision is to be made after May 1, 2006. • McGoug6 provided an update to the EDA/City Council on its acquisition efforts at the EDA meeting on February 21, 2006. On the basis of that update and testimony by the remaining property owners, the City Council and the EDA concluded that the Developer had made reasonable efforts to acquire the remaining Properties and that the process was at an impasse for some, if not all, of the remaining properties and, as a consequence, directed that consideration of the findings of fact for approval of the development agreement be placed on the EDA Agenda for its meeting on March 6, 2006. • While some of the property owners have indicated a desire to continue to negotiate with McGough based on the revised offers and anticipating appraisals those property owners have ordered but have not yet received, it is not certain that the negotiations can be completed with all of the parties. P/ As such, the findings related to the agreement are in order for consideration at this time. • The remaining property owners have been noticed of this action being .considered at Monday's EDA meeting. • As background to the Council action, general facts concerning the redevelopment area and the redevelopment agreement aze as follows: • The City performed an analysis of properties in northern Eagan in the general area of Hwy 55, Hwy 149 and I-494 and found that properties within the area met the standards necessary under Minnesota statutes to qualify as a redevelopment Tax Increment Financing District. • On the basis of those findings, the City created TIF District 2-4 on February 9, 2002. The purpose for the District under the TIF Plan is to provide consistency of land use planning and improvement of existing conditions to bring about development consistent with the Comprehensive Guide Plan designation for Business Park. The proposed project would consist of a multi- story Class A Office Building ranging between 175,000 and 287,000 squaze feet and related site improvements. • The TIF District formed by that action included certain properties located on Blue Gentian Road and Blue Gentian Circle. McGough Development has begun to acquire property in the area and has proposed to implement a redevelopment of the area consistent with the purposes identified in the TIF Plan for the District. To date all but five of the properties within the District have been acquired by the company. • McGough Development is obligated under the agreement to demonstrate to the City that it has exhausted reasonable efforts to acquire the properties within that portion of the Redevelopment District privately, before the City will consider participating in property acquisition. • The T1F Plan makes a finding that but-for creation of the District, the intended redevelopment activity would not happen. The City's Redevelopment Consultant has reviewed the financial proforma for the proposed development and has prepared a memo indicating, likewise, that the specific proposed redevelopment contemplated by the agreement would not occur but-for the assistance outlined in the TIF Development Agreement. • The TIF assistance to the project will range from $2.8 million to $4.8 million depending upon the size of the building constructed and whether structured pazking is included as part of the project. • More detailed background is included in the City Attorney's memo, which is included in the attachments. ATTACHMENTS: • Redevelopment District maps on pages through _~~ • City Attorney's background memo on pages ~' • City Redevelopment Consultant's memo regazding the "but-for" finding on page f ~D • Development Agreement includiag Exhibits F&G on pages ~ ~~~9 g~ • Minutes of November 1, 2006 EDA meeting on pages ~ """/ • Findings of Fact, Conc usions and Resolution to approve the Development Agreement on pages -- ~'3 V ~ 0 0 -- C ~ ~' E ~r 'D a ~ o ~ C ~ 'i~ ~ ~ M ~ 0 ~_ t ~ a ~ ~ ~ lQ i~ Z f, :~ i. I~ I i 0 0 b C9 O N '7 m '~ o v o a m m ~ a N /, a ~ ~;.~ ;% . ~ ~ u i ' `err` ' ~ .; e ..~~ _~Y.j ~~/I /•'~• ~-~ -ter / / .a'~ N l?~~'a j I , ~~ r r ~~~° 1 ~ - - t i t ~~ ~ ~ ti f ~ , ,,• -~ c :~ ~ 1 ~~~ 1 ^ ~ • i ; ~~ `. ~~ I ~~~ t I ~= t .: ' ~: I~ -;~~ ~ ` `, s { ` ~ ~'. it _ (~ : i : ~ 1 '~. 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SUITE 600 7300 WEST 147TH STREET APPLE VALLEY, MINNESOTA 55124-7580 (952)432-3136 TELEFAX NUMBER (952) 432-3780 E-MAIL huuskog@seversonsheldon.com TO: Jon Hohenstein, Community Development Director FROM: Gary Huusko, Assistant City Attorney DATE: October 27, 2005 RE: Background for Public Hearing on EDA - MG Eagan, LLC Development Agreement and condemnation of Properties. Our File No. 206-23506 The Notice of Hearing has been published and sent to the property owners pursuant to MINN. STAT. § 469.012, Subd. 6 (2002). On November 1st, the public hearing will be held. At that time, the EDA will be need to do the following: Consider and approve the Development Agreement with MG Eagan, LLC; Receive public comment on the acquisition of the Properties by eminent domain; Make sufficient Findings and Conclusions to support the acquisition. The general relevant information that should be considered by the EDA includes the history of the establishment of the TIF District, the ensuing lawsuit and the Court's decision (attached), the good faith efforts by MG Eagan/McGough in acquiring the properties, and the City's plan for the development area. Specifically, relevant background to the discussion is as follows: Notice of Hearin • The Economic Development Authority published in the requisite legal newspaper the Notice of Hearing on October 15, 2005, which is no more than 30 days nor less than 10 days prior to the hearing by the Economic Development Authority to A6 consider acquisition of the Properties identified above and below by exercise of the Economic Development Authority's powers of eminent domain and for approval of the Development Agreement with MG Eagan, LLC for property located in the Northeast Eagan Redevelopment District on Blue Gentian Road and Blue Gentian Circle. • The Economic Development Authority sent the Notice of Hearing to each Property owner, by Certified Mail and by First Class United States Mail on October 12, 2005, which is no more than 30 days nor less than 10 days prior to the hearing by the Economic Development Authority to consider acquisition of the Properties identified above and below by exercise of the Economic Development Authority's powers of eminent domain and for approval of the Development Agreement with MG Eagan, LLC for property located in the Northeast Eagan Redevelopment District on Blue Gentian Road and Blue Gentian Circle. Development Agreement - MG Eagan, LLC • The City has been in discussion with the MG Eagan, LLC regarding the redevelopment of a portion of the Northeast Eagan Redevelopment District for the possible construction of a multi-story class A office building. • The Economic Development Authority is considering entering into a Development Agreement with MG Eagan, LLC for the redevelopment of the Northeast Eagan Redevelopment District. • MG Eagan, LLC has begun to acquire and assemble properties in the redevelopment area. Several properties have yet to be acquired that are expected to be necessary for the successful redevelopment of the overall site, to wit: the properties located on Blue Gentian Circle and Blue Gentian Road, to wit: 990 Blue Gentian Circle -PID#: 100020004026; 1027 Blue Gentian Circle -PID#: 100020004032; 1020 Blue Gentian Circle -PID#: 100020001026; 1030 Blue Gentian Circle - PID #: 100020006032; PID#: 100020005032; and PID#: 100020003032 (the "Properties"). • The Development Agreement covers issues including the potential for the developer to request that the City use eminent domain to acquire the remaining parcels upon presentation of evidence of good faith efforts to do so. • The redevelopment will increase the tax base, increase employment, modernize outdated and incompatible buildings, and further the City's ultimate objective of creating an economically viable redevelopment project. • In order to make the Properties suitable and available for economic development uses and purposes, the Authority needs to develop and improve the Properties in the Northeast Eagan Redevelopment District on Blue Gentian Road and Blue Gentian Circle. ~7 • The conceptual development plan of the Developer for the Development District, including the Properties, is generally in conformance with the City's Comprehensive Guide Plan, zoning and land use ordinances and appears to be consistent with the surrounding development and development plans for the area. • The Redevelopment District, including the Properties on Blue Gentian Road and Blue Gentian Circle, is proper and desirable to establish and develop within the City. • The properties considered to be acquired by the Authority will be acquired for public uses and public purposes and that the taking is necessary and convenient in furtherance of a redevelopment project within the City. Best Efforts by MG Eagan to acquire Properties • McGough Development has made several offers to purchase the respective Properties, each at a higher dollar amount than the previous offer. • The final offers made by McGough ranged from 1.7 to 2.5 times the total assessed values of the respective Properties. • All of these offers were rejected by the respective Property owners. • During the course of negotiations, McGough Development requested assistance from the Mediation Center for Dispute Resolution. (At the time of packet preparation, we haven't received from McGoughMG Eagan, LLC or their attorney definitive information as to the acceptance or resolution of that offer). • MG Eagan, LLC has made substantial efforts to acquire the Properties by negotiated purchase, but has been unable to purchase the Properties. As part of its action, the Council will need to determine whether the developer has met the best efforts requirement in the agreement and will be unable to purchase the Properties without the assistance of the eminent domain authority of the Economic Development Authority. Structurally Substandard Properties • As a requirement in creating the T1F District, the City found that the Properties are structurally substandard and the resolution establishing the TIF district included the findings and supporting documentation required by Minn. Stat. § 469.175, subd. 3 (2000), including the property inspection report prepared by Bonestroo, Rosene, Anderlik & Associates, an engineering firm. The Properties were the subject of litigation arising from the creation of the TIF District (Reding„ et. al. v. City of Eagan, 664 NW2d 403 (Minn. Ct. App. 2003) wherein the Court concluded that the City's finding that the Properties are structurally substandard was supported by the record and was not arbitrary or capricious. • Relevant facts supporting the finding that the Properties are structurally substandard include: SFl - The Properties are not connected to City water or City sewer. - The Properties are all. located on an unpaved street with no curbs, gutters, or storm drainage structures. - The Properties insulation and windows are substandard. - The buildings on the Properties have water provided by a well and each have a septic system. - The cost of modifying the buildings on the Properties to satisfy the building code applicable to new homes would be greater than 15% of the cost of constructing a similar building on each site. • The Properties located within the Redevelopment District on Blue Gentian Road and Blue Gentian Circle are blighted, that the buildings located on the properties are structurally substandard and that the redevelopment of the Properties will lead to substantial economic development. 8''9 Reiling, et. al. v. City of Eagan, 664 NW2d 403 (Minn. Ct. App. 2003) STATE OF MINNESOTA IN COURT OF APPEALS CX-03-249 Roger Reiling, et al., Appellants, vs. City of Eagan, Respondent. Filed July 1, 2003 Affirmed Robert H. Schumacher, Judge Dakota County District Court File No. C4027356 Michael F. Swensen, 1721 Mount Curve Avenue, Minneapolis, MN 55403 (for appellants) George C. Hoff, Hoff, Barry & Kuderer, P.A., 160 Flagship Corporate Center, 775 Prairie Center Drive, Eden Prairie, MN 55344 (for respondent) Considered and decided by Kalitowski, Presiding Judge, Randall, Judge, and Schumacher, Judge. SYLLABUS Minn. Stat. § 469.1771, subd. 1 (2000), confers original jurisdiction upon the district court to review a municipality's determination of atax-increment financing district. ~5 6 OPINION ROBERT H. SCHUMACHER, Judge Appellants Roger and Gladys Reiling, Ray and Marilyn Sandford, Patricia and Frank Pavlik, and Ray-Mar Rental challenge the district court's grant of summary. judgment dismissing their claim, alleging that respondent City of Eagan improperly included their property in a redevelopment tax increment financing (TIF) district. By notice of review, respondent argues the district court lacked subject-matter jurisdiction to review respondent's quasi judicial TIF determination. We affirm. FACTS By resolution passed in February 2002, the Eagan city council created a redevelopment TIF district pursuant to Minn. Stat. § 469.174, subd. 10 (2000). Minnesota State Highway 55 bisects the district into a northern area that includes primarily residential property owned and inhabited by appellants and a southern area occupied primarily by commercial and industrial property. A municipality may create a redevelopment TIF district only after finding by resolution that at least 70% of the parcels in the district are occupied by improvements covering at least 15% of the area of each parcel and that at least 50% of the buildings, excluding outbuildings, are "structurally substandard." Minn. Stat. § 469.174, subd. 10(a)(1)(e). A building is considered structurally substandard if the cost of modifying the building to satisfy the building code applicable to new buildings is greater than 15% of the cost of constructing a new structure of the same square footage and type on the site. Id., subd. 10(c). In determining whether a building is structurally substandard, a municipality may consider reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. * * * An interior inspection of the property is not required, if the 9/ municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard. Id. A TIF redevelopment district can be comprised of "contiguous or noncontiguous" geographic areas. Id., subd. 9. If a redevelopment TIF district consists of two or more noncontiguous areas, each area must independently meet the statutory definition of a redevelopment district. Id., subd. 10(f). The terms "contiguous" and "noncontiguous" are not defined in any of the applicable statutes. Respondent's resolution establishing the redevelopment TIF district included the findings and supporting documentation required by Minn. Stat. § 469.175, subd. 3 (2000). Among the materials before the city council was a property inspection report prepared by Bonestroo, Rosene, Anderlik & Associates, an engineering firm. The Bonestroo report noted that appellants' residential parcels, on the north side of highway 55, are all located on an unpaved street with no curbs, gutters, or storm drainage structures and that none of appellants' residences are served by municipal sewer or water services. The report concluded the proposed redevelopment TIF district met the statutory criteria for a redevelopment district and that, without exception, the cost of modifying appellants' buildings to satisfy the building code applicable to new homes would be greater than 15% of the cost of constructing a similar building on each site. After respondent passed the resolution, appellants brought an action in district court seeking a temporary injunction prohibiting respondent from including their parcels in the redevelopment TIF district. Appellants argued highway 55 divides the district into noncontiguous areas and that each area must independently meet the statutory definition of a redevelopment district as required by section 469.174, subd. 10(f). Appellants contended their area, considered independently, did not meet the definition and must be excluded from the ~~ district. Appellants also challenged the methodology used by Bonestroo in determining appellants' properties were structurally substandard. The court issued the injunction. Respondent brought a motion for summary judgment, arguing the district court lacked subject-matter jurisdiction to review respondent's quasi judicial TIF determination, and, if jurisdiction did lie, the court must uphold respondent's decision as reasonable and supported by the record. The district court granted respondent's motion and dismissed appellants' complaint as a matter of law, finding highway 55 does not divide the TIF redevelopment district into noncontiguous areas and there was a reasonable factual basis in the record to support respondent's findings in support of including appellants' property in the district. Appellants now challenge the grant of summary judgment and request a remand to the district court for further proceedings. By notice of review, respondent challenges the district court's jurisdiction to review respondent's TIF determination. ISSUES 1. Did the district court have subject-matter jurisdiction to review respondent's determination of atax-increment financing district? 2. Was respondent's inclusion of appellants' property in the redevelopment tax- increment financing district reasonable and supported by substantial evidence? ANALYSIS 1. Respondent argues the district court lacked subject-matter jurisdiction to review respondent's inclusion of appellants' property within the redevelopment TIF district. We disagree. 93 "Whenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action." Minn. R. Civ. P. 12.08(c). We note that although the district court stated in its order that it would not address respondent's jurisdictional challenge, it nonetheless assumed jurisdiction by issuing an order resolving the dispute. Subject-matter jurisdiction is a question of law, which this court reviews de novo. Handicraft Block Ltd. P'ship v. City of Minneapolis, 611 N.W.2d 16, 19 (Minn. 2000}. A municipality acts in a quasi judicial capacity when it determines that property meets the definition of a redevelopment TIF district under Minn. Stat. §§ 469.174, subd. 10, 469.175, subd. 3 (2000). Walser Auto Sales, Inc. v. City of Richfield, 635 N.W.2d 391, 401 (Minn. App. 2001), affd, 644 N.W.2d 425 (Minn. 2002). "[A]bsent statutory authority for a different process," a party may obtain review of a quasi judicial decision only by writ of certiorari to the court of appeals. Willis v. County of Sherburne, 555 N.W.2d 277, 282 (Minn. 1996). The authority of the district court to review such decisions is jurisdictional. Mowry v. Young, 565 N.W.2d 717, 719 (Minn. App. 1997), review denied (Minn. Sept. 18, 1997). In its appellate brief, respondent asserted no statute authorizes a process for review of municipal TIF decisions other than by writ of certiorari to this court. But the TIF statute's enforcement provision provides: The owner of taxable property located in the city * * * in which the tax increment financing district is located may bring suit for equitable relief or for damages * arising out of a failure of a municipality or authority to comply with the provisions of sections 469.174 to 469.1798, or related provisions of this chapter. Minn. Stat. § 469.1771, subd. 1(a) (2000). Respondent argued this provision does not confer jurisdiction upon the district court because the statutory authorization to "bring suit for equitable relief or for damages" does not specifically designate an action in district court. 9~ We do not find respondent's interpretation of the statute compelling. When statutory language is not reasonably susceptible to more than one interpretation, we must give effect to its plain meaning as a manifestation of legislative intent. Kersten v. Minn. Mut. Life. Ins. Co., 608 N.W.2d 869, 874-75 (Minn. 2000); Tuma v. Comm'r of Econ. Sec., 386 N.W.2d 702, 706 (Minn. 1986). It is true that section 469.1771, subd. 1(a), does not contain the words "district court." Cf. Minn. Stat. § 462.361, subd. 1 (2000) (authorizing individuals aggrieved by municipal planning decisions to seek "an appropriate remedy in the district court"). We nonetheless believe the process and remedies contemplated by section 469.1771, subd. 1(a) - "bring[ing] suit for equitable relief or for damages" -reasonably permit only one interpretation, i.e., the district court has jurisdiction over a challenge to a municipal TIF determination in the first instance. Minnesota district courts have "original jurisdiction" to hear requests for equitable relief. Holmberg v. Holmberg, 588 N.W.2d 720, 724 (Minn. 1999); see also DeLa Rosa v. DeLa Rosa, 309 N.W.2d 755, 758 (Minn. 1981) (stating district court's equitable jurisdiction gives court "inherent power to grant equitable relief'). Similarly, the district court has broad discretion to determine damages and "will not be reversed except for a clear abuse of discretion." Admiral Merchs. Motor Freight, Inc. v. O'Connor & Hannan, 494 N .W.2d 261, 267 (Minn. 1992) (citation omitted). The statutory provision in section 469.1771, subd. 1(a) authorizing claimants to "bring suit" does not plainly, commonly, or reasonably designate an appeal to this court, either by notice of review or by writ of certiorari. We therefore conclude the language of section 469.1771, subd. 1(a), unambiguously confers jurisdiction upon the district court to review municipal TIF determinations. 2. Appellants challenge the district court's grant of summary judgment to respondent, arguing that highway 55 divided the TIF district into noncontiguous parts and there qs was insufficient evidence in the record to support respondent's decision to include appellants' property in the redevelopment TIF district. Summary judgment is appropriate when a district court determines that "there is no genuine issue as to any material fact and that either party is entitled to a judgment as a matter of law." Minn. R. Civ. P. 56.03. This court reviews a grant of summary judgment de novo to determine whether there are any genuine issues of material fact and whether the district court erred in applying the law. Zip Sort, Inc. v. Comm'r of Revenue, 567 N.W.2d 34, 37 (Minn. 1997). No genuine issue of material fact exists "[w]here the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party." DLH, Inc. v. Russ, 566 N.W.2d 60, 69 (Minn. 1997) (alteration in original) (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S. Ct. 1348, 1356 (1986)). Judicial review of respondent's quasi judicial decision is limited to a determination of whether respondent "erred as a matter of law, issued a decision unsupported by substantial evidence, or acted arbitrarily or capriciously." Walser, 635 N.W.Zd at 401 (quotation omitted). The reviewing court may consider only the evidence in the record before respondent when the decision was made. See Dietz v. Dodge County, 487 N.W.2d 237, 239 (Minn. 1992). Appellants argue the district court erred by concluding their parcels were contiguous with the rest of the redevelopment TIF district, as the term "contiguous" is used section 469.174, subd.l0(f), despite the fact that highway 55 crosses the district. We review the district court's interpretation of a statutory term de novo. Brookf eld Trade Ctr., Inc. v. County of Ramsey, 584 N.W.2d 390, 393 (Minn. 1998). Although the statute does not define the term "contiguous," the word commonly means "[t]ouching at a point or along a boundary" or "adjoining." Black's Law Dictionary, 315 (7th ed. 1999). Similarly, "abut" means "[t]o join at a border or boundary." Id. at 10. An "abutter" is the "owner of adjoining land." Id. The Eagan city code defines "abutting" 96 as "making contact with or separated only by a public thoroughfare * * * ." Eagan, Minn., Code of Ordinances § 11.03 (2003). Given the synonymy of the terms "abutting" and "contiguous," we conclude contiguity is not affected by the presence of a public thoroughfare such as highway 55. As respondent argues, virtually every parcel within the district at issue here is separated from other parcels by public thoroughfares, which do not by their mere presence divide the district into so many noncontiguous districts. See Walser, 635 N.W.2d at 401 (observing that roadway may act as "a clear dividing line between * * * two groups of properties" in redevelopment TIF district without creating noncontiguous districts). We conclude highway 55 does not disrupt the contiguity of the district. Appellants also contend the methodology used by Bonestroo was flawed and argue respondent's inclusion of their properties in the district was unreasonable by virtue of its reliance on the Bonestroo report. We disagree and conclude respondent's TIF determination was reasonably based upon the record before it when the decision was made. Appellants argue Bonestroo did not make a sufficient effort to obtain their permission to conduct interior inspections of their residences. The record before respondent contained uncontroverted evidence that appellants were repeatedly contacted by Bonestroo and refused to allow interior inspections. Bonestroo found, and it is undisputed, that appellants' properties are not served by municipal water, sewer, and storm drainage systems. Appellants concede they have actively opposed respondent's past attempts to connect their homes to these services. Pursuant to section 469.174, subd. 10(c), Bonestroo included the cost of installing these services in its estimate of the costs of modifying appellants' residences to satisfy the current building code. q~ Appellants challenge Bonestroo's claim that their insulation and windows were substandard, arguing their windows and insulation were recently replaced as part of an airport noise abatement program. There was no evidence of insulation and window improvements in the record before respondent. Finally, appellants cite no authority in support of their argument that respondent must encourage property owners to improve their buildings themselves before it conducts or commissions an assessment to determine whether the buildings are substandard. The record before respondent consisted of the Bonestroo report, the TIF plan, resolutions passed by both the Eagan Advisory Planning Commission and the Eagan Economic Development Authority approving the redevelopment TIF plan, a report from respondent's TIF financial consultant recommending approval of the plan, and testimony taken at the public hearing held on the redevelopment district. On this record, we conclude respondent's quasi- judicial determination that the redevelopment TIF district included appellants' properties and met the statutory definition of a redevelopment district was supported by the record and was not arbitrary or capricious. DECISION Pursuant to Minn. Stat. § 469.1771, subd. 1(a) (2000), the district court has jurisdiction to review a municipality's inclusion of property within atax-increment financing district. The district court correctly concluded that highway 55 does not disrupt the contiguity of the redevelopment TIF district at issue here and that respondent's inclusion of appellants' properties in the district was based upon evidence in the record and was reasonable. The court therefore did not err by granting respondent summary judgment and dismissing appellants' suit. Affirmed. 9s' SEVERSON, SHELDON, DOUGHERTY & MOLENDA, P.A. SUITE 600 7300 WEST 147TH STREET APPLE VALLEY, MINNESOTA 55124-7580 (952) 432-3136 TELEFAX NUMBER (952) 432-3780 E-MAIL huuskog@seversonsheldon.com TO: Jon Hohenstein, Community Development Director FROM: Gary Huusko, Assistant City Attorney DATE: October 31, 2005 RE: Supplement To: Background for Public Hearing on EDA - MG Eagan, LLC Development Agreement and condemnation of Properties. Our File No. 206-23506 At the time of the preparation of background for the EDA meeting, it was noted that the developer had offered mediation to the property owners as part of their efforts to negotiate acquisition of the properties, but we did not have documentation of the property owners' response. Since that time, we have been informed by the attorney for the developer that the offer for mediation was turned down verbally. 99 FREERS & ASSOCIATES INC I O To: Jon Hohenstein Community Development Director, City of Eagan From: Sid Inman, Ehlers & Associates W Rebecca Kurtz, Ehlers & Associates Date: March 3, 2006 Subject: Blue Gentian Corporate Center (McGough) -But-For Analysis The City has received from the developers of the Blue Gentian Corporate Center (McGough) a request for Tax Increment assistance. The City has asked Ehlers & Associates to review the developer's project feasibility analysis to determine if the level of the assistance requested is needed to make the project financially feasible. The developer provided to Ehlers financial information on three different options of building size that contained details regarding expenses, revenues and other pertinent operational financial information. After we reviewed this material, we met with the developer's representatives to discuss and review the information provided. Using the information provided to us, we prepared a Return on Cost Analysis for each of the three options. Based on the information provided, we have determined that the return on cost requested was within acceptable ranges of industry standards, and the level of assistance requested is needed to make the project financially feasible. Please let me know if you have any questions or comments, or if we can be of further assistance on this matter. LEADERS IN PUBLIC FINANCE l~ . _ _ 3060 Centre Pointe Drive Phone: 651-697-8507 Fax Roseville, MN 55113-1105 sid~ehlers-inc.com ;. 651-697-8555 DEVELOPMENT AGREEMENT Dated , 2006 Relating to TAX INCREMENT FINANCING DISTRICT NO. 2-4 Between EAGAN ECONOMIC DEVELOPMENT AUTHORITY CITY OF EAGAN and MG EAGAN, LLC This Instrument Drafted by: Faegre & Benson LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, Minnesota 55402-3901 Telephone: (612) 766-7000 /o/ DEVELOPMENT AGREEMENT THIS AGREEMENT, made and entered into as of this day of , 2006, 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 MG EAGAN, LLC, a Minnesota limited liability company (the "Developer"): WITNESSETH: WHEREAS, the EDA has created and established a Tax Increment Financing District referred to as Tax Increment Financing District No. 2-4 (the "TIF District") in connection with that part of the Development Program for Northeast Eagan Development District No. 2 which has been established as a Redevelopment Project pursuant to Minnesota Statutes, Section 469.028 (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, demolition, soil correction and public improvement costs in the Redevelopment Project Area; and WHEREAS, the Developer proposes to develop certain office 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 Developer has purchased the Acquired Developer's Parcels and will agree to purchase the Other Parcels which the EDA acquires hereunder substantially in accordance with the form of Purchase Agreement attached as Exhibit E for use in connection with the Improvements; and WHEREAS, the EDA has the right to repurchase the Other Parcels which the EDA acquires and conveys to the 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; /aa 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 Developer's Parcels. The parcels of property heretofore acquired by the Developer as described in Exhibit F. (b) Certificate of Completion. The certificate of completion to be executed and delivered pursuant to Section 3.4, in the form of Exhibit B hereto. (c) City. The City of Eagan, Minnesota. (d) Completion Percentage. The completed portion of the Minimum Improvements, as the case maybe expressed as a percentage determined by dividing the square footage of completed improvements by the aggregate square footage of the Minimum Improvements. (e) Demolition and Soil Correction Costs. The costs of the City, the EDA and Developer of demolition of existing structures on the Property and soil correction associated with the Improvements. (f) Developer. MG Eagan, LLC, a Minnesota limited liability company, its successors and assigns. (g) Development. The Property and the Minimum Improvements to be constructed thereon according to the Development Plans approved by the EDA and the City. (h) Development Plans. Collectively, the preliminary plans, drawings and related documents referred to in Exhibit D, as the same maybe amended or supplemented from time to time by the Developer and approved by the EDA and the City, which establish certain design and construction standards for the Improvements. (i) EDA. The Economic Development Authority of the City of Eagan, Minnesota. (j) Improvements. The Minimum Improvements and any additional improvements which maybe constructed on the Development Property in accordance with the Development Plans. %a3 (k) Other Parcels. The parcels of property to be acquired by the EDA or the Developer which are described in Exhibit G hereto. (1) Minimum Improvements. Each and all of the improvements to be constructed on the Development Property, which shall include an office building of at least 175,000 square feet, as specified in the Development Plans, but excluding any and all personal property. (m) Mortgage 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. (n) Property. The real property which is included within the TIF District and which is legally described in Exhibit A attached hereto. (o) Public Acquisition Costs. The costs to the City and the EDA of acquiring the Other Parcels. (p) Public Development Costs. The costs of the Public Improvements described in Section 3.10. (q) Public Improvements. The roads and other public infrastructure improvements described in Exhibit H. (r) Purchase Agreement. The Purchase Agreement between the EDA and Developer to be entered into in connection with the purchase by the Developer of the those Other Parcels which the EDA may acquire, which Purchase Agreement is attached as Exhibit E. (s) Redevelopment Plan. The Redevelopment Plan for the Redevelopment Project Area, as amended from time to time. (t) Relocation Costs. The relocation costs required bylaw or agreement to be paid to the owners and tenants of the Other Parcels. (u) Repurchase A.~,reement. The Repurchase Agreement between the EDA and the Developer relating to the parcels purchased by the Developer under a Purchase Agreement, which form of Repurchase Agreement is attached as Exhibit B to the Purchase Agreement. (v) Structured Parking Costs. Any costs paid or incurred by the Developer to construct structured parking as part of the Improvements. (w) SubstantiallX All. 85%, measured by square footage, of the Minimum Improvements. %5~ (x) Tax Increment Note (TIF Note). The Tax Increment Revenue Note to be issued by the EDA to finance a portion of the costs of the TIF District, in substantially the form attached as Exhibit C. (y) Tax Increment Financing District (TIF District). Tax Increment Financing District No. 2-4 created by the EDA pursuant to Minnesota Statutes Sections 469.174 through 469.179 and described in the TIF Plan adopted therefor. (z) Tax Increment Financin P~ lan (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 approved by a resolution of the City Council adopted March 5, 2002. (aa) Other Terms. Terms defined in other sections of this Agreement have the meanings given them. (bb) Unavoidable Delays. Delays which are 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, 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. Legal Description of Development Property B. Certificate of Completion. C. Form of Tax Increment Note. D. Development Plan Documents. E. Forms of Purchase Agreement and Repurchase Agreement. F. Legal Description of Acquired Developer's Parcels. G. Legal Description of Other Parcels. H. Description of Public Improvements. I. Required Soil Correction Activities. 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 similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than any particular 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. %DS (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND COVENANTS Section 2.1 By the Developer. The Developer makes the following acknowledgements, representations and covenants: (a) The Developer has the legal authority and power to enter into this Agreement. (b) The Developer has acquired the Acquired Developer's Parcels and has the necessary financial resources for construction of the Minimum Improvements. (c) The Developer 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, parking facilities, or landscaping improvements which are necessary in connection with the construction and operation of the Improvements. (d) At such time or times as may be required by law, the Developer will have complied with all 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. (e) The 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. (f) The Developer has conducted such investigation as it has deemed necessary with respect to the establishment of the TIF District and the basis for the inclusion of the Property therein and, with respect to this Development Agreement and its acceptance of the TIF Notes, is not relying on any representation or warranty of the EDA or the City with respect to the due establishment thereof or its qualification as a "redevelopment district". (g) The Developer's investment in the purchase of the Property and site preparation, after giving effect to the TIF Notes, will be at least 70% 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. %6 Section 2.2 B_y the EDA and City. The EDA and City make the following representations as the 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 is in the process of considering zoning modifications for the Property to accommodate the Development as proposed, and the City has conducted and completed all environmental reviews and assessments required to be undertaken by it under applicable law. (c) The EDA intends to treat the issuance of the TIF Note as payment or reimbursement for eligible costs under Minnesota Statutes, Section 469.176, Subd. 4; and to allocate the payment or reimbursement to eligible costs in the following order: (a) Demolition and Soil Correction Costs, (b) Public Development Costs, (c) any Structured Parking Costs (d) Public Acquisition Costs and (e) Relocation Costs. The Property was determined by the EDA's consultants to include parcels which contain structurally substandard buildings and adjacent parcels necessary to provide a site of sufficient size to permit an integrated development. The Demolition and Soil Correction Costs, Public Development. Costs, Public Acquisition Costs and Relocation Costs are expected to exceed $ In the event the Developer constructs structured parking as part of the Improvements, the Structured Parking Costs are expected to exceed $ ARTICLE III. CONSTRUCTION OF IMPROVEMENTS; PUBLIC IMPROVEMENTS; OTHER DEVELOPER OBLIGATIONS Section 3.1 Construction of Minimum Improvements. The Developer agrees that it will construct or cause to be constructed the Minimum Improvements and any other improvements which the Developer elects to construct on the Property substantially in accordance with the Development Plans. Section 3.2 Buildin Pg lans. Final Development Plans for the Improvements shall be subject to approval by the City. Section 3.3 Completion of Construction. Subject to Unavoidable Delays, construction of the Minimum Improvements shall be commenced no later than December 31, and construction of Substantially All of the Minimum Improvements shall be completed no later than December 31, .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 Substantially All of the 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 %a9 EDA determines that the construction has been completed substantially in accordance with the Development Plans and applicable regulations, the EDA shall furnish the Developer with a Certificate of Completion in the form of Exhibit C. 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 Minimum Improvements, and shall constitute a release of the Developer's obligations hereunder. Section 3.5 Property Acquisition. The real property necessary to be acquired for the Development consists of the Acquired Developer's Parcels and the Other Parcels. The EDA has held public hearings in accordance with Minnesota Statutes, Section 469.012, Subd. 6, and, prior to the execution hereof, has made the findings and determinations which were necessary to authorize acquisition of the Other Parcels by condemnation. At such time as the EDA determines that reasonable efforts by the Developer to acquire the Other Parcels have been exhausted the EDA shall acquire by condemnation such of the Other Parcels as the Developer has not acquired. 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, the EDA and Developer shall, no later than the closing date of the EDA's purchase of the parcel, enter into a Purchase Agreement substantially in the form of Exhibit E. 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 parcel or such later date as the EDA may agree to, 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 a purchase price equal to the purchase price specified in the Purchase Agreement. In lieu of the acquisition by the EDA of the State Parcels and reconveyance by the EDA of the State Parcels to the Developer, the Developer shall at its expense acquire good and marketable title to the State Parcels from the State of Minnesota; provided, however, that if the Developer is unable to do so, the EDA, upon request of the Developer, will do so and any such Parcels to be acquired by the EDA upon such request shall be deemed to be "Other Parcels" for the purposes of this 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. Section 3.6 Demolition. Within nine months after the right to occupy any parcel of Property, the Developer shall demolish all the buildings and other improvements thereon. Any demolition costs paid by the Developer or EDA with respect to the Property shall be deemed Demolition and Soil Correction Costs hereunder to the extent accompanied by evidence of the reasonableness thereof. /~U 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 as provided by the Purchase Agreement relating thereto. Any relocation costs paid by or on behalf of the EDA (including those reimbursed by the Developer) shall be considered Relocation Costs hereunder to the extent accompanied by evidence of the reasonableness thereof. Section 3.8 Soil Correction. Any costs paid by the Developer to remedy any soil correction problems described in Exhibit L hereto shall be deemed Demolition and Soil Correction 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 for payment of Public Acquisition Costs, Relocation Costs and other costs hereunder, the Developer shall, prior to commencement by the EDA of any condemnation proceeding, (i) reimburse the EDA for any appraisal, consultant or legal fees paid or incurred by the EDA with respect to such parcel prior to such date and (ii) 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, Relocation Costs and Demolition and Soil Correction Costs incurred or reasonably estimated to be incurred by the EDA in connection with its activities hereunder 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, Relocation Costs and Demolition and Soil Correction Costs incurred by the EDA 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. Section 3.10 Construction of Public Improvements. The City shall construct the Public Improvements as a local improvement under Minnesota Statutes, Chapter 429 by (i) the earlier of (A) the date two (2) years after the date hereof, of (B) the date ninety (90) days prior to the date on which the Developer commences construction of the Minimum Improvements; or (ii) such later date as maybe approved by the Developer. 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. The parties agree that no provision of this Agreement shall limit the right of the City to assess the Property for its respective lawful share of the assessable costs of the Public Improvements. In addition, the property owners shall pay the cost of the usual charges for water and sewer utility service for the Property. %a 9 Section 3.12 Vacation of Blue Gentian Circle. On or prior to , 200_ the City shall hold the necessary public hearings to consider the vacation of Blue Gentian Circle. Section 3.13 Marketing Plan. Prior to , 200_ the Developer shall prepare and submit to the EDA a marketing plan reasonably satisfactory to the EDA describing efforts to be made by the Developer to obtain tenants for the Development and shall submit to the EDA at the end of each calendar quarter a description of efforts made and progress made in implementing the plan. ARTICLE IV. LIMITATION UPON ENCUMBRANCE; PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; SUBORDINATION Section 4.1 Limitation Upon Encumbrance of Development. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attached to the Property other than the mortgages, liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for acquiring and developing the Property and constructing the Improvements and such additional funds, if any, in an amount not to exceed the costs of developing the Development without the prior written approval of the EDA. The EDA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article IV of this Agreement. The EDA shall respond to any request under this Article IV within 45 days. Section 4.2 Representation as to Development. The Developer represents and agrees that its undertakings pursuant to this Agreement are for the purpose of implementation of the Development. The Developer further recognizes that, in view of the importance of the Development to the general welfare of the EDA and the substantial financing and other public aids that have been made available by the EDA and the City for the purpose of making the Development possible, the qualifications and identity of the Developer are of particular concern to the EDA. The Developer further recognizes that it is because of such qualifications and identity that the EDA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by Developer to be performed. Section 4.3 Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 4.2 of this Agreement, the Developer represents and agrees that, prior to the issuance of the Certificate of Completion: (a) Except only transfers to affiliated entities in which Interstate Partners LLC has an ownership interest and management control and transfers or encumbrances for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to acquire and develop the Property and perform the 9 //b Developer's obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Development or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the EDA, which approval shall not be unreasonably withheld; and (b) The EDA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 4.3 that: (i) any proposed transferee shall have the qualifications and financial responsibility, as determined by the EDA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer, or, in the event the transfer is of or relates to part of the Development, such obligations to the extent that they relate to such part; (ii) any proposed transferee, by instrument in writing satisfactory to the EDA and in form recordable among the land records, shall for itself and its successors and assigns, and specifically for the benefit of the EDA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of or relates to part of the Development, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the fact that any transferee of, or any other successor in interest whatsoever to, the Development or any part thereof, shall, for whatever reason, not have assumed such obligations or agreed to do so, shall not, unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the EDA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the EDA of or with respect to any rights or remedies or controls with respect to the Development or the construction of the Improvements; it being the intent of this Section 4.3, together with other provisions of this Agreement, that to the fullest extent permitted bylaw and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Development or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the EDA, of any rights or remedies or controls provided in or resulting from this Agreement with respect to the Development and the construction of the Improvements that the EDA would have had, had there been no such transfer or change; and (iii) there shall be submitted to the EDA for review all instruments and other legal documents involved in effecting transfers described herein, and, if approved by the EDA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the EDA to the contrary, no such transfer or approval by the EDA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto which are not expressly assumed by the transferee approved by the EDA. Section 4.4 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 Vii/ 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 financing, except its right to repurchase the Imre Parcels under the Repurchase Agreement. (b) In order to facilitate the obtaining of financing for the acquisition and development of the Property 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 NOTE Section 5.1 Issuance of Tax Increment Note. Subject to the further provisions of this Section, the EDA shall, upon completion of Substantially All of the Minimum Improvements and the issuance of a the Certificate of Completion therefor, issue to the Developer a Tax Increment Note substantially in the form of Exhibit C. The principal amount of the TIF Note issued upon completion of Substantially All of the Minimum Improvements shall be (a) $ plus, (b) if the Improvement exceeds 175,000 square feet and includes at least _ spaces of structured parking, the lesser of (i) $ or (ii) the Structured Parking Costs. The TIF Note shall bear interest at the rate of % 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 the 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 Note shall be dated as of the Completion Date of the Minimum Improvements and shall mature on February 1, 2029. The Developer covenants and agrees not to sell, transfer or convey the TIF Note without the express written consent of the EDA; provided, however, that the Developer may, without such consent, (i) pledge or grant a security interest in the 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 Developer acknowledges that the EDA makes no representations as to the adequacy of tax increments available to pay the TIF Note. The TIF Note shall be payable solely from the available 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 i~a out of any funds or properties of the EDA or City other than tax increment from the TIF District. Section 5.2 Tax.Increment Available for TIF Note. The semi-annual installments due on the TIF Note shall be paid solely from the tax increment actually received by the EDA from collections of ad valorem taxes from the Property, after deducting 25% of such increment for allowable administrative expenses and other purposes. Available tax increment shall be applied first to accrued and unpaid interest and then to principal. No installments on the 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 shall pledge or appropriate any available tax increment from the Property to the payment of any other obligation until the TIF Note has been paid in full. ARTICLE VI. EVENTS OF DEFAULT Section 6.1 Events of Default Defined. The following shall be deemed Events of Default 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; 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 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. 12 / ~~ Section 6.2 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 or the City, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (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; 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, Developer has no further obligations hereunder, and no remedy shall affect the right of the Developer to receive payment under the TIF Note. Section 6.3 No Remedy 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 maybe 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 thereafter waived by another party, such waiver shall be limited to the particular 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 Individually 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 %%y 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. 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 ar 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 ~/s (c) As to the Developer: MG EAGAN, LLC c/o McGough Development, LLC 2737 Fairview Avenue North St. Paul, MN 55113 Attn: Gregory S. Miller (d) with a copy to: Dorsey & Whitney LLP 50 South Sixth Street Minneapolis, MN 55402-1498 Attn: Jay F. Cook 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. %/6 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 MG EAGAN, LLC By ,its Manager By: Gregory S. 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O ~ c,.., A O ~ M ~ C \ ~ ~ ° ~ l N \ M 7 ~ W O ~ ~ \ ~ N ~+ Z O W N \ ' O C7 Q OQ xi r -y ' q0 ° O~N ~ r ~ O pAQ O ° ~ ;L°, ~~~ ^~ •O L1+~O~~i ~'n..A Z N WO\MF+ WG~1~3N W ~E~ A W'~i O~i~E-+ .~ b x x a~ ~ o b ~ ~ ~ a ~ O ~3 ~ C7 ~3 C7 X23 w .~ ~ on ~. ~ w ~ ~ ~ ~ a ~ ~ ~ ~ ~ ~o ~ ~, c~ ~; ~ as ~ ~ ~ 0 N O 0 M O ~ ~ ~k ~ ~ ~O O N O N O N O ~ h M a N N N N N O O O O O C7 /i9 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 MINUTES 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 /~D offering mediation or other alternative dispute resolution efforts, before the EDA would conclude that such efforts had been exhausted. Commissioner Carlson moved, Commissioner Maguire seconded a motion to close the public hearing to direct preparation of findings of fact to approve a development agreement with McGough Companies including findings regarding 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 CLINIC 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 Carlson 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, N1N 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 regard to public assistance. jai BEFORE THE EAGAN ECONOMIC DEVELOPMENT AUTHORITY CITY OF EAGAN, DAKOTA COUNTY, MINNESOTA In Re: Consideration of the Development FINDINGS OF FACT, Agreement Relating to TIF District No. 2-4 CONCLUSIONS AND and for Condemnation of Certain Properties RESOLUTION Located in the Northeast Eagan Development District This matter came before the Eagan Economic Development Authority (the "EDA") at its meeting of November 1, 2005. The EDA received and considered public comment; input from City staff; the proposed Development Agreement between the City of Eagan (the "City"), the EDA and MG Eagan, LLC (the "Developer"); together with all existing files, records and prior proceedings and material as presented to the EDA. Based upon all the files, records and input which were presented at the meeting, the EDA makes the following Findings of Fact, Conclusions and Resolution. FINDINGS OF FACT 1. The City has taken steps to bring about the redevelopment of the Northeast Eagan Redevelopment Area (the "Redevelopment District"), including public improvements, environmental reviews, comprehensive plan and zoning modifications, the initiation of redevelopment activity in a portion of the district, and the creation of a Tax Increment Financing (TIF) District, all being consistent with the City's plans for the area. 2. The City has been in discussion with the Developer regarding the redevelopment of the portion of the Redevelopment District that lies between Blue Gentian Road and the I- 494/I-35E interchange for the possible construction of a multi-story class A office building. Under the TIF development plan's general terms, City staff and the Developer have negotiated a i ~a~ draft Development Agreement relating to the Tax Increment Financing District No. 2-4 (the "Development Agreement") to be considered by the EDA and City Council. 3. The City and the EDA will enter into the Development Agreement with the Developer for the redevelopment of the Redevelopment District. 4. The Developer has begun to acquire and assemble properties in the redevelopment area. Several properties have yet to be acquired that are expected to be necessary for the successful redevelopment of the overall site, to wit: the properties located on Blue Gentian Circle and Blue Gentian Road, to wit: 990 Blue Gentian Circle -PID#: 100020004026; 1020 Blue Gentian Circle -PID#: 100020001026; 1030 Blue Gentian Circle -PID #: 100020006032; PID#: 100020005032; and PID#: 100020003032 (the "Properties"). 5. The Developer has used reasonable efforts to acquire the Properties by negotiated purchase, but has been unable to purchase the Properties and likely will be unable to purchase the Properties without the assistance of the eminent domain authority of the EDA. 6. The Development Agreement covers issues including the level of TIF assistance that may be provided to the Developer and the potential for the Developer to request that the EDA use its powers of eminent domain to acquire the remaining parcels upon presentation of evidence of reasonable efforts to do so. In cases in which property may be acquired for resale to a private entity and in which eminent domain may be necessary to do so, the local unit of government must hold a public hearing to take testimony and to make findings as to the public purpose of entering into the agreement. 7. At their meetings of September 20, 2005, the EDA and City Council scheduled a public hearing for their respective meetings of November 1, 2005 to consider the Development Agreement. Notices were properly mailed and published. ~a s 8. At its meeting of November 1, 2005, the EDA and City Council held a public hearing to consider approval of the Development Agreement between the City of Eagan and the Developer. 9. At that time, the Developer had acquired eleven of the properties in the area, but had not reached agreement with the remaining five property owners for acquisition of their properties. Those properties are commonly known as the RayMar, the Sandford, the Pavlicks, the Reilings and the Marvel Eggum Estate properties. As part of the public hearing background, the Developer provided documentation of its reasonable efforts to acquire those properties. 10. As an outcome of the public hearing on November 1, the EDA and City Council directed preparation of findings of fact, conclusions and resolution to approve the Development Agreement for their consideration at a subsequent meeting, but also directed the Developer to take additional steps to attempt to acquire the remaining properties directly, before the EDA and City would take final action in that regard. Final approval was to be based on a finding that the Developer and the property owners had undertaken additional reasonable efforts to buy and sell the property and that the EDA would then consider using eminent domain to acquire the properties that could not be acquired by the Developer. 11. Since that time, staff coordinated a meeting involving the Developer, the property owners, the City Attorney and the City's Financial Consultants to discuss the Council's direction and encourage the parties to proceed with further negotiations. In follow up, the Developer has performed an appraisal of the Properties, made revised offers to the owners of the remaining Properties and has acquired the RayMar property. Other property owners have corresponded with the Developer, but no additional sales have been reported as of this date. 12. As a requirement in creating the TIF District, the City found that the Properties are structurally substandard and the resolution establishing the TIF District included the findings i'a ~ and supporting documentation required by Minn. Stat. § 469.175, subd. 3 (2000), including the property inspection report prepared by Bonestroo, Rosene, Anderlik & Associates, an engineering firm. 13. Properties within the Redevelopment District were the subject of litigation arising from the creation of the TIF District (Reiling, et. al. v. City of Eagan, 664 N.W.2d 403 (Minn. Ct. App. 2003) wherein the Court concluded that the City's finding that the Properties are structurally substandard was supported by the record and was not arbitrary or capricious. 14. Relevant facts supporting the finding that the Properties are structurally substandard include: • The Properties are not connected to City water or City sewer. • The Properties are all located on an unpaved street with no curbs, gutters, or storm drainage structures. • The Properties insulation and windows are substandard. • The buildings on the Properties have water provided by a well and each have a septic system. • The cost of modifying the buildings on the Properties to satisfy the building code applicable to new homes would be greater than 15% of the cost of constructing a similar building on each site. 15. The City and the EDA published in the requisite legal newspaper the Notice of Hearing on October 15, 2005, which is no more than 30 days nor less than 10 days prior to the hearing by the EDA to consider acquisition of the Properties identified above and below by exercise of the EDA's powers of eminent domain and for approval of the Development Agreement with the Developer for property located in the Redevelopment District on Blue Gentian Road and Blue Gentian Circle. /as 16. The EDA sent the Notice of Hearing to each property owner, by Certified Mail and by First Class United States Mail on October 12, 2005, which is no more than 30 days nor less than 10 days prior to the hearing by the EDA to consider acquisition of the Properties identified above and below by exercise of the EDA's powers of eminent domain and for approval of the Development Agreement with the Developer for property located in the Redevelopment District. 17. The Developer provided an update to tfie EDA and City Council on its acquisition efforts at the EDA meeting on February 21, 2006. On the basis of that update and testimony by the remaining property owners, the City Council and EDA concluded that the Developer had made reasonable efforts to acquire the remaining Properties and that the process was at an impasse for some, if not all, of the remaining properties and, as a consequence, directed that consideration of the findings of fact for approval of the Development Agreement be placed on the EDA Agenda for its meeting on March 6, 2006. 18. While some of the property owners have indicated a desire to continue to negotiate with the Developer based on the revised offers and anticipating appraisals those property owners have ordered but have not yet received, it is not certain that the negotiations can be completed with all of the parties. As such, the EDA finds that the Developer has made reasonable efforts to acquire the Properties, and findings related to the Development Agreement are in order for consideration. 19. The owners of the remaining un-purchased Properties have been noticed of this action being considered at this EDA meeting. CONCLUSIONS ia6 1. The City, by adoption of an enabling resolution in compliance with the procedural requirements of Minnesota Statute Section 469.093, established the EDA having the powers contained in Minnesota Statutes Sections 469.090 to 469.108. 2. The Properties located within the Redevelopment District on Blue Gentian Road and Blue Gentian Circle are blighted, that the buildings located on the properties are structurally substandard and that the redevelopment of the Properties will lead to substantial economic development. 3. The redevelopment of the Properties on Blue Gentian Road and Blue Gentian Circle, is proper and desirable and will increase the tax base, employment, modernize outdated and incompatible buildings, and further the City's ultimate objective of creating an economically viable redevelopment project. 4. The conceptual development plan of the Developer for the Development District, including the Properties, is generally in conformance with the City's Comprehensive Guide Plan, zoning and land use ordinances and appears to be consistent with the surrounding development and development plans for the area. 5. In order to make the Properties suitable and available for economic development uses and purposes, the EDA needs to develop and improve the Properties in the Redevelopment District on Blue Gentian Road and Blue Gentian Circle. 6. The Developer has used reasonable efforts to acquire the Properties, and is unable to acquire the Properties without the EDA's exercise of its powers of eminent domain. 7. The properties considered to be acquired by the Authority, to wit: 990 Blue Gentian Circle -PID#: 100020004026; 1020 Blue Gentian Circle -PID#: 100020001026; 1030 Blue Gentian Circle -PID #: 100020006032; PID#: 100020005032; and PID#: 100020003032 ia~ will be acquired for public uses and public purposes and that the taking is necessary and convenient in furtherance of a redevelopment project within the City. RESOLUTION The EDA does hereby resolve that the Development Agreement Relating to TIF District No. 2-4 is in the best interests of the City and the TIF District and its people, is in the pubic interest and furthers the aims and purposes of Minnesota Statutes Sections 469.090 to 469.108, and the transaction furthers its general plan of economic development and is necessary to carry out a redevelopment project. The EDA, by and through its President and Executive Director, are authorized to execute the Development Agreement Relating to TIF District No. 2-4. The EDA does hereby resolve that acquisition of the Properties, to wit: 990 Blue Gentian Circle -PID#: 100020004026; 1020 Blue Gentian Circle -PID#: 100020001026; 1030 Blue Gentian Circle -PID #: 100020006032; PID#: 100020005032; and PID#: 100020003032, are necessary to carry out a redevelopment project. The City staff, the EDA's advisors and legal counsel are authorized and directed to acquire the Properties through the power of eminent domain, including the use of quick take. Dated at Eagan, Minnesota this day of 2006. EAGAN ECONOMIC DEVELOPMENT AUTHORITY By: Pat Geagan Its: President By: Thomas L. Hedges Its: Executive Director %~~' 6~/ r b~ 1191HX3 Q= ~ ~ N ~ O ~ ~ z k ~ .~... ,~ o Om 'L z ~ ~ ~ ;' --. ~ .~..r ~»~ ' _. H ~~ ~ ~ N ~~ =~ -~ -~: o z ----- -- - --- ------- _--------_ a~ ..-- a'~e ~ ~` ~ y' d W ~ f~ 0 ~ . s; r~ J p ~~ { ~ t 1 ~ _~ ~~~ c~. ~, 't~ f N z° W ~ ~ .~..~ ;~ duo; urxa~ ~ (/~ 0 ~~ ~ 5 ~ ~ ~ a' ~ ~~ H 4P6J~ O ~f~ BEFORE THE CITY COUNCIL CITY OF EAGAN, DAKOTA COUNTY, MINNESOTA In Re: Consideration of the Development FINDINGS OF FACT, Agreement Relating to TIF District No. 2-4 CONCLUSIONS AND and for Condemnation of Certain Properties RESOLUTION Located in the Northeast Eagan Development District This matter came before the Eagan City Council (the "Council") at its meeting of November 1, 2005. The Council received and considered public comment; input from City staff; the proposed Development Agreement between the City of Eagan (the "City"), the Council and MG Eagan, LLC (the "Developer"); together with all existing files, records and prior proceedings and material as presented to the Council. Based upon all the files, records and input which were presented at the meeting, the Council makes the following Findings of Fact, Conclusions and Resolution. FINDINGS OF FACT 1. The City has taken steps to bring about the redevelopment of the Northeast Eagan Redevelopment Area (the "Redevelopment District"), including public improvements, environmental reviews, comprehensive plan and zoning modifications, the initiation of redevelopment activity in a portion of the district, and the creation of a Tax Increment Financing (TIF) District, all being consistent with the City's plans for the area. 2. The City has been in discussion with the Developer regarding the redevelopment of the portion of the Redevelopment District that lies between Blue Gentian Road and the I-494/I-35E interchange for the possible construction of a multi-story class A office building. Under the TIF development plan's general terms, City staff and the Developer have negotiated a draft /30 Development Agreement relating to the Tax Increment Financing District No. 2-4 (the "Development Agreement") to be considered by the EDA and City Council. 3. The City and the EDA will enter into the Development Agreement with the Developer for the redevelopment of the Redevelopment District. 4. The Developer has begun to acquire and assemble properties in the redevelopment area. Several properties have yet to be acquired that are expected to be necessary for the successful redevelopment of the overall site, to wit: the properties located on Blue Gentian Circle and Blue Gentian Road, to wit: 990 Blue Gentian Circle -PID#: 100020004026; 1020 Blue Gentian Circle - PID#: 100020001026; 1030 Blue Gentian Circle -PID #: 100020006032; PID#: 100020005032; and PID#: 100020003032 (the "Properties"). 5. The Developer has used reasonable efforts to acquire the Properties by negotiated purchase, but has been unable to purchase the Properties and likely will be unable to purchase the Properties without the assistance of the eminent domain authority of the EDA. 6. The Development Agreement covers issues including the level of TIF assistance that may be provided to the Developer and the potential for the Developer to request that the EDA use its powers of eminent domain to acquire the remaining parcels upon presentation of evidence of reasonable efforts to do so. In cases in which property maybe acquired for resale to a private entity and in which eminent domain may be necessary to do so, the local unit of government must hold a public hearing to take testimony and to make findings as to the public purpose of entering into the agreement. 7. At their meetings of September 20, 2005, the EDA and City Council scheduled a public hearing for their respective meetings of November 1, 2005 to consider the Development Agreement. Notices were properly mailed and published. %3/ 8. At its meeting of November 1, 2005, the EDA and City Council held a public hearing to consider approval of the Development Agreement between the City of Eagan and the Developer. 9. At that time, the Developer had acquired eleven of the properties in the area, but had not reached agreement with the remaining five property owners for acquisition of their properties. Those properties are commonly known as the RayMar, the Sandford, the Pavlicks, the Reilings and the Marvel Eggum Estate properties. As part of the public hearing background, the Developer provided documentation of its reasonable efforts to acquire those properties. 10. As an outcome of-the public hearing on November 1, the EDA and City Council directed preparation of findings of fact, conclusions and resolution to approve the Development Agreement for their consideration at a subsequent meeting, but also directed the Developer to take additional steps to attempt to acquire the remaining properties directly, before the EDA and City Council would take final action in that regard. Final approval was to be based on a finding that the Developer and the property owners had undertaken additional reasonable efforts to buy and sell the property and that the EDA would then consider using eminent domain to acquire the properties that could not be acquired by the Developer. 11. Since that time, staff coordinated a meeting involving the Developer, the property owners, the City Attorney and the City's Financial Consultants to discuss the Council's direction and encourage the parties to proceed with further negotiations. In follow up, the Developer has performed an appraisal of the Properties, made revised offers to the owners of the remaining Properties and has acquired the RayMar property. Other property owners have corresponded with the Developer, but no additional sales have been reported as of this date. 12. As a requirement in creating the TIF District, the City found that the Properties are structurally substandard and the resolution establishing the TIF District included the findings and %3~ supporting documentation required by Minn. Stat. § 469.175, subd. 3 (2000), including the property inspection report prepared by Bonestroo, Rosene, Anderlik & Associates, an engineering firm. 13. Properties within the Redevelopment District were the subject of litigation arising from the creation of the TIF District (Reilin~, et. al. v. City of Eagan, 664 N.W.2d 403 (Minn. Ct. App. 2003) wherein the Court concluded that the City's finding that the Properties are structurally substandard was supported by the record and was not arbitrary or capricious. 14. Relevant facts supporting the finding that the Properties are structurally substandard include: • The Properties are not connected to City water or City sewer. • The Properties are all located on an unpaved street with no curbs, gutters, or storm drainage structures. • The Properties insulation and windows are substandard. • The buildings on the Properties have water provided by a well and each have a septic system. • The cost of modifying the buildings on the Properties to satisfy the building code applicable to new homes would be greater than 15% of the cost of constructing a similar building on each site. 15. The City and the Council published in the requisite legal newspaper the Notice of Hearing on October 15, 2005, which is no more than 30 days nor less than 10 days prior to the hearing by the Council to consider acquisition of the Properties identified above and below by exercise of the EDA's powers of eminent domain and for approval of the Development Agreement with the Developer for property located in the Redevelopment District on Blue Gentian Road and Blue Gentian Circle. 16. The City sent the Notice of Hearing to each property owner, by Certified Mail and by First Class United States Mail on October 12, 2005, which is no more than 30 days nor less than %3.3 10 days prior to the hearing by the Council to consider acquisition of the Properties identified above and below by exercise of the EDA's powers of eminent domain and for approval of the Development Agreement with the Developer for property located in the Redevelopment District. 17. The Developer provided an update to the EDA and City Council on its acquisition efforts at the Council meeting on February 21, 2006. On the basis of that update and testimony by the remaining property owners, the City Council and EDA concluded that the Developer had made reasonable efforts to acquire the remaining Properties and that the process was at an impasse for some, if not all, of the remaining properties and, as a consequence, directed that consideration of the findings of fact for approval of the Development Agreement be placed on the Council Agenda for its meeting on March 6, 2006. 18. While some of the property owners have indicated a desire to continue to negotiate with the Developer based on the revised offers and anticipating appraisals those property owners have ordered but have not yet received, it is not certain that the negotiations can be completed with all of the parties. As such, the Council finds that the Developer has made reasonable efforts to acquire the Properties, and findings related to the Development Agreement are in order for consideration. 19. The owners of the remaining un-purchased Properties have been noticed of this action being considered at this Council meeting. CONCLUSIONS 1. The City, by adoption of an enabling resolution in compliance with the procedural requirements of Minnesota Statute Section 469.093, established the EDA having the powers contained in Minnesota Statutes Sections 469.090 to 469.108. 2. The Properties located within the Redevelopment District on Blue Gentian Road and Blue Gentian Circle are blighted, that the buildings located on the properties are structurally /3 v substandard and that the redevelopment of the Properties will lead to substantial economic development. 3: The redevelopment of the Properties on Blue Gentian Road and Blue Gentian Circle, is proper and desirable and will increase the tax base, employment, modernize outdated and incompatible buildings, and further the City's ultimate objective of creating an economically viable redevelopment project. 4. The conceptual development plan of the Developer for the Development District, including the Properties, is generally in conformance with the City's Comprehensive Guide Plan, zoning and land use ordinances and appears to be consistent with the surrounding development and development plans for the area. 5. In order to make the Properties suitable and available for economic development uses and purposes, the EDA needs to develop and improve the Properties in the Redevelopment District on Blue Gentian Road and Blue Gentian Circle. 6. The Developer has used reasonable efforts to acquire the Properties, and is unable to acquire the Properties without the EDA's exercise of its powers of eminent domain. 7. The properties considered to be acquired by the Authority, to wit: 990 Blue Gentian Circle -PID#: 100020004026; 1020 Blue Gentian Circle -PID#: 100020001026; 1030 Blue Gentian Circle -PID #: 100020006032; PID#: 100020005032; and PID#: 100020003032 will be acquired for public uses and public purposes and that the taking is necessary and convenient in furtherance of a redevelopment project within the City. RESOLUTION The City Council does hereby resolve that the Development Agreement Relating to TIF District No. 2-4 is in the best interests of the City and the TIF District and its people, is in the public interest and furthers the aims and purposes of Minnesota Statutes Sections 469.090 to %3s 469.108, and the transaction furthers its general plan of economic development and is necessary to carry out a redevelopment project. The City, by and through the Mayor and Clerk, are authorized to execute the Development Agreement Relating to TIF District No. 2-4. The Council does hereby resolve that acquisition of the Properties, to wit: 990 Blue Gentian Circle -PID#: 100020004026; 1020 Blue Gentian Circle -PID#: 100020001026; 1030 Blue Gentian Circle -PID #: 100020006032; PID#: 100020005032; and PID#: 100020003032, are necessary to carry out a redevelopment project. The City staff, the Council's advisors and legal counsel are authorized and directed to assist the EDA to acquire the Properties through the power of eminent domain, including the use of quick take. Dated at Eagan, Minnesota this day of , 2006. CITY OF EAGAN By: Pat Geagan Its: Mayor By: Mira Pepper Its: Deputy City Clerk /36 G~'/ Agenda Memo Eagan Economic Development Authority Meeting March 6, 2006 1. CEDAR GROVE REDEVELOPMENT DISTRICT -PUBLIC HEARING TO CONSIDER THE USE OF EMINENT DOMAIN TO ACQUIRE THE CEDARVALE MALL AT THE REQUEST OF ITS OWNER. CEDAR GROVE PROPERTIES. AS OUTLINED IN THE CEDAR GROVE REDEVELOPMENT TIF DEVELOPMENT AGREEMENT BETWEEN THE CITY AND SCRAPER RICHARDSON - TO BE CONTINUED TO MARCH 21.2006 ACTION TO BE CONSIDERED: To continue to March 21, 2006 the Public Hearing to consider the use of eminent domain to acquire the Cedarvale Mall at the request of its owner, Cedar Grove Properties, as outlined in the Cedaz Grove Redevelopment TIF Development Agreement between the City and Schafer Richardson. FACTS: • At its meeting of February 21, 2006, the EDA and City Council scheduled a public hearing for its meeting of February 21, 2006 to consider this matter. • An error occurred in the publication of notice for this item. As a consequence, it was necessary to continue the item to March 6, 2006 to permit the item to be renoticed. Because only nine days were available between the official paper publication date and March 6 and the statute requires a ten day notice, it is again necessary to continue the item. The continuation to Mazch 21 will permit ten days published notice. ATTACHMENTS: • None /34 Agenda Information Memo Eagan Economic Development Authority Meeting March 6, 2006 F. OTHER BUSINESS It is anticipated that the City Council and EDA will go into executive session to discuss a matter pertaining to the negotiations for the potential acquisition of the All American Recreation property in the Cedar Grove area for redevelopment purposes. As a consequence the EDA will adjourn following the executive session. /39 ,,~ t d W ~ ~ w ~ ~~ ~ H~ ~ O~ ~ ~~~~ r~w0~ %~~ Z F- ~ O ~ _ Q O ~ Q O ~ a O m ~ C V ~ `~ 0 ~ ~ ~ . ~ ~ . ~ Z a~ ~ o C~ ~ O ~+ V ,J J ~ •~ Z ~ ~ Q J J ~ ~ y ~ O ~ N ~ Z (.~ .~ ~ ~ 0 ~ ~ ~ ~ ~ ~ Z W U ~ ~ A a ~ ~ w ~ ° ~ W ~ w ~- Q o~Q ~~w ~ W r~~. ~ ~ - ~` Z Z ~~~~- ^, , ~=~~== _ ~ .._-- :~ ~ ~ ; c 0 .~ a ~. 0 a ar H i i w t a .p 0 N d .D 0 0 .~ L m v .~ N 1' ~~ ~ ~ W ~ ~N ~ O w~'O~ ~~~~ ~`'~~ .__., ~~~ ~~W~ ~~ 0 0 ~ o U ~ O U O ~ Q .U ~ Q C~3 ~ ~ ~ m ~ ~ ~ "~ m O ~ ~ I ~ (~ a ~ ~ W L c -~ 0 '~ c a ~ - ~ _ ~ c D ~ ~+ (~ ~ i ~ ~ }' ~ a~ ~ ~ ~ ~ ~ L ~ O ~~ ~ ~~o°o ~ O _ ~ ~ ~ ~ Q ~_c~ N ~ ~ ~ u' o ~- ~. ~~ ~ ~QQ Q O ~ ~ ~ ~ ~ ~ ~ U ~ ~ ~ ~ ~ ~ ~ ~ L ~ ~ ~ ~ ~ •- R3 N ~ ~ ~ ~+ N ~ I I~~~ I I I X00 - • • n C O :J ~~f~ .... ,...... 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L -1-r • - "- ~ U ~'~ ~ ~ ~~ ~ ~ ~- ~ ~ ~ .~ ~ ~ ~n v-- X00 ~ a~~ o ._ ~ ~~ ~ ~ N ~- O ~ ~ O ~ ~ ~ L ~ ~+~ ~ ~ ~ ~ ~ ~ ~ ~ L ~ .~ N Cn o ~- ;~ ~ U O l~~~lp ~:~~ ~8a~ ! =. ~ i ~s ~ ~ ~:° ° ~ ' f ~~ 8 ~~E ~~ ~ ~ ~~ ~ 3~~~ b ~ ~' j I i I ~ !i~ .~ ~ ~ ~ ~ ~ ~ i p~~ t t l ~ t ~ ~A~ ~~a .;:~ ' • ~.,lt t ~ z s ~ ~ i~ ~ ~~ ~ ~ ~. _ ~ ! ! ~~~ a/ s 1 ~*~ 1 ~ ~: ~ ~ ~ ~ # ~~ f g ~ ~ i _.: .. oo i a o a ~a1 ~ oo ~ ~ 0 L =s L Y W L v o ~ ~~ G O RESTATED ARTICLES OF INCORPORATION OF EAGAN FIREFIGHTERS RELIEF ASSOCIATION Pursuant to Minnesota Statutes Chapter 317A, the fo ing gestated Articles of Incorporation have been properly adopted by the Board of ors as authorized by the Members of the Association to supersede the original icle Incorporation and all amendments thereto. AR7 N. The name of the corporation is the Eagan.F "Association"). _ 1. The Ass purposes within the amended (the "Co , the support and relief of assistance in d as the by an to rais eceive, keep priv ces, but ber. through g ental sc 2 and dispose of the the Association w, powers granted by Minnesota Statutes ganized an hall be opErated exclusively for social welfare Wing o tion SOI(c) of the Internal Revenue Code of 1986, as in p ular to reliev burdens of government by providing for i enende with retirement benefits and other financial age kne ty, and to pay such pensions and death benefits the of Minnesota may prescribe. The Association is authorized dmi al funds coming into its hands from governmental or ie aid to hers and their dependents shall be funded primarily iat' may receive gifts, devises, and bequests and hold, administer, sively for the accomplishment of the charitable purposes for which d. The Association in carrying out its purposes shall have all the a corporation formed under the Minnesota Nonprofit Corporation Act, ;r 317A, and laws amendatory thereof and supplementary thereto. 3. Notwithstanding any provision herein, the Association shall not carry on any activities not permitted to be carried on by a corporation exempt from federal income tax under Sections 501(c) of the Code. D(:101 V1 0.0 4 2005 Minncsotn fircfip~tu Fiduciancs, LLC 4. No substantial part of the activities of the Association shall consist of carrying on propaganda or otherwise attempting to influence legislation or participating in or intervening in (including the publication or distribution of statements) any political campaign on behalf of (or in opposition to) any candidate for public office. 5. The assets of the Association shall at all times be dedicated to the exempt purpose of the Association. ARTICLE III NO MONETARY GAIN The Association shall not permit monetary gain, directors, members, officers, or other private person Association shall inure to the benefit of any director shall be authorized and empowered to pay reasons c make payments and distributions in furtherance ARTICLE IV REGISTERED NT; REGISTE~ The registered agent and office of ion in the 3795 Pi~~ ~ Eagan, 5122 ARTI to accrue to its earnings of the the Association tendered and to shall be: established by the Bylaws of this Association. tTICLE VI OF DIRECTORS Them ent of business of the Association shall be vested in a board of directors which shall be th a as board of trustees elected by the members and those trustees who qualify as ex-officio es. The number, qualifications, term of office, method of election, powers, authorities, duties of the directors, the time and place of their meetings, and such other provisions with respect to them as are not inconsistent with the express provisions of these Articles of Incorporation shall be as specified in the Bylaws of the Association. ARTICLE VII NO PERSONAL LIABILITY; INDEMNIFICATION The directors and officers of the Association shall not be personally liable for the acts, debts, liabilities, or obligations of the Association to any extent whatsoever; nor shall any of the n for se forth in OFFICE oc2oi_vi.o.o property of the directors or officers of the Association be subject to the payment of any debts or obligations of the Association. The Association shall indemnify persons to the extent required by the Minnesota Nonprofit Corporation Act, and shall have the power otherwise to indemnify persons for such expenses and liabilities, in such manner, under such circumstances, and to such extent as permitted by applicable law. The board of trustees of the Association retains the discretion to indemnify its members for breach of fiduciary duty. ARTICLE VIII AMENDMENT The power to adopt, amend or repeal the Bylaws or this Association, and to establish procedures with respect to the adoption, amendm or rep ereof, is vested in the membership. ~ 1. Upon dissolution of the corporation, due or for any other reason, its remaining is shall be di 424B.20. 2. Upon dissolution, the bo records of the Association to the chief adm board shall also notify the commissioner of of the dissolution within ~~ the effec day dissolution of the fire department ri in accordance with Minn. Stat. of the iation shall transfer the r of th pplicable municipality. The ~itor, and the secretary of state of the hereunto subscribed her name this 13th Signature ocioi vi.o.o IN WITNESS W~EC RESTATED BYLAWS OF EAGAN FIREFIGHTERS RELIEF ASSOCIATION The Bylaws of the Eagan Firefighters Relief Association are of January 1, 2006 ARTICLE I NAMES The name of this organization shall be the "Association"). ~ General DefinitionsThe following words meanings except as "Active member" is active with the Firer restated effective as Relief ~p~t (the shall have the following is eligible for benefits and is currently who is no longer active with the Fire of accrued benefits. serving the Municipality. ARTICLE III PURPOSE The purpose of the Association is to provide retirement relief and other benefits to its members and their dependents. The Association is a government entity that receives and manages public funds to provide retirement and ancillary benefits for individuals providing the governmental services of firefighting and, if applicable, emergency first response. The Association may also raise funds from private sources to famish fire and emergency equipment for the Fire Department, and for other purposes deemed necessary and appropriate by the Association to the extent permitted by law. Benefits paid to members and their dependents shall be funded exclusively through governmental sources. OC201 Vt.3.i i 02005Mi~aotaFirefightaFiduciaies.L[,C ARTICLE IV MEMBERSHIP 4.1 Admission. An application for membership shall be completed on the form provided for the purpose of becoming eligible for benefits in the Association. All active members of the Fire Department are members of the Association and shall be eligible for benefits, except as otherwise stated in these bylaws. Upon approval of the member's ation, such member shall accrue service credit for all active service while in probation tus. 4.2 Membership Duties. The Association does 4.3 Membership Dues. The Association 4.4 Member Voting Rights. Each acti ber sl matter voted upon by the membership. Voting b pr not 4.5 Termination. Any member who is termin accruing benefits under the Association ~~the date of Eu' bership duties. dire mem 'n dues. 1 be entitled toe on any ~tted. the Fire Department shall cease BOARD 5.1 C osition. Board of T~ trustees must be el a the bership of tl officials drawn from the ' ip moved by 1 trustees must ected cipa~ who aze a icip esentatives b; the chi f the munici dep t., tees shall consist of nine members. Six 'ef association. There shall be three (3) ire Department. The three (3) municipal one elected or appointed municipal official y the municipal governing board annually and Duties. The d of Tees shall perform the functions and assume the same duties as a of Directo der S tion 317A of the Minnesota Statutes. In addition, the Board of Trustees sh (a) Hav control and management of all funds received by the Treasurer pars the statutes of the State of Minnesota and all moneys or property donate given, granted or devised for the benefit of the Association. (b) Examine when by them deemed advisable, the books, papers, funds, securities and property in the custody of the Treasurer, and generally accounts, funds and securities, and property of the Association. (c) Examine and approve the validity of all claims prior to payment by the Treasurer. nrm~ vi.~.~ 2 (d) Prepare, supervise or direct the preparation of forms to be supplied by the association on which members may submit claims to the Board of Trustees for their approval. (e) On an annual basis or more frequently as may be required to determine eligibility for benefits, review and verify records of service credit that have been delivered to the Association and certified by the chief of the Fire Department. (f) Assume such additional duties as maybe described in procedures or required by state law, including adop ' of establishment of an investment committee or any of necessary or appropriate, provision of written ' s securing certificates of insurance in connec 'on 'th the and establishment of a continuation edu 1 in orde their fiduciary responsibilities. ARTICLE V OFFICERS 6.1 below. 6.2 (a) ~) (c) (e) (~ (g) Number. The officers of President. It count all have gene nt, see that o 'gn and deli cts, or e in cas exer lyl by the >~£d and ~ policies and stment policy, deemed ins to brokers, of consultants, p abreast of 11 be as set forth the duty of~e~sident~Association to: along with t'~ Treasurer, issued by the Association; of ~ business of the corporation; at meets of the board and of the members; of the board are carried into effect; ' the name of the corporation deeds, mortgages, bonds, ~ r instruments pertaining to the business of the corporation, n which the authority to sign and deliver is required by law to be other person or is expressly delegated by the articles or bylaws or to another officer or agent of the corporation; maintain records of and, when necessary, certify proceedings of the board and the members; and perform other duties prescribed by the board . 6.3 Vice President. It shall be the duty of the Vice President to perform the duties of the President in the President's absence. In the absence of both the President and the Vice President, the Board of Trustees shall appoint an interim President and Vice President who DC201 Vi.3.1 shall perform the duties incident to the of~"ice. 6.4 Secre . It shall be the duty of the Secretary of the Association to: (a) Keep a membership record showing the correct addresses of all beneficiaries and members. (b) Keep or cause to be kept an accurate record of all meetings of the Association and of all meetings of the Board of Trustees. _ (c) Conduct and direct the investigation of all claims. (d) 6.5 (a) ~) Keep a record of all monies received and pai Treasurer. It shall be the duty of the T ure countersign all checks, along with e e Receive and receipt all monies due the Asso and to keep accurate acco~nd records of >~y the of the Asocial t, i,~l by the from members and other sources Imonev so received. (c) (d) (e) Have custody of all monies Association. Furnish a sur red in favor o socia the faithful performance of all duties inv ssociation for the sa eeping of, or accounting for, all movie d secure at may co into its possession. The bond shall be in an am to at 1 t 10% of the up to a maximum of $500,000. enefits, and to pay all bills incurred in the way in the con ct of the business of the Association. e officers s annually prepare an annual financial report of the iation's ipts, disbursements, and balances in the Special and 1 Fun r the preceding calendar year on a form prescribed by the O i to Auditor. They shall transmit the report to the city clerk for ' n, signature and transmission to the State Auditor pursuant to law. (b) Pursuant to the Volunteer Firefighter's Association Guidelines Act of 1971, the officers of the Association shall, annually, determine the financial requirements of the Special Fund for the following year. The financial requirements of the relief association and the minimum municipal obligation must be included in the financial report or financial statement. DCL01_V 1.3.1 4 6.7 Compensation. As compensation for services to the Association by the President, Secretary and Treasurer, the membership may at the Annual meeting of the members authorize payment of an aggregate salary expense payable from the Special Fund to one or more of these officers. The amount shall be recommended by the Boazd to the membership and approved by the membership at their annual meeting. ARTICLE VII ELECTIONS 7.1 Voting. Each active member or Trustee prese r ented if proxy is allowed) at the meeting shall be entitled to one vote. All v t unless ed prior to the vote, shall be conducted by a voice vote. If a majority canno to ed b ' e vote, the offcer in charge of the vote shall ask for a show of hands or a secret ballot. All "majority" is majority of the quorum, not majority of entire boa embers ' or association ship. 7.2 Trustee Terms. The Trustees shall bee to ed three-year rms. There will be two Trustees elected by the membership etch yeaz ual meeting of the Association. The term of each appointed municipal tee is one year o 'the person's successor is qualified, whichever is later. An individual Trustee may serve 7.3 Votin on Trustees. Each posi separately by the active attendance candidates or cumula ' voting be allowe meeting is needed Notwi ding Art be allowed. A trustee re with or active of /![ie rustees shall be voted on e annual eting. No nonunations of slates of ,simple majority of those present at the to the contrary, voting by proxy will not ~it cause by a simple majority vote of the or special meeting. of President, Vice President, Secretary, and Treasurer shall officer pos I following the meeting. A sim with or without c, regular or special rs. Of~ers shall be elected by the Board of Trustees. Voting for f Trustees will take place at the first Association Boazd Meeting Each position will be nominated and elected separately at this needed for an officer to be elected. An officer may be removed ple majority vote of the Trustees in any subsequent annual, No individual may hold more than one officer position at one time. 7.6 Vacancies. In the case of death, resignation or removal from office for any officer or Trustee of the Association, the vacancy shall be filled by the Board of Trustees from the membership at a boazd meeting to be duly called for the purpose of filling out this term. OC201_Vi.3.i ARTICLE VIII MEETINGS 8.1 Annual Meeting. The annual meeting of the members shall be held on the fourth Monday of February of each yeaz except that if that day is a holiday, said meeting shall be held on the next succeeding Monday. The place of the meeting shall be designated and may be changed from time to time by the Board of Trustees. 8.2 Regular Meetings. The regular meetings of the me The place of the meeting shall be designated and may be changed of Trustees. 8.3 Special Meetings of the Members. called at any time upon the written order of the Pry Trustees or 25 percent voting members of the Ass. designated and may be changed from time to time Special 8.4 Notice of Meetings of the Members. A ' e including the annual meeting and any special meeting, sh member at least five (5), but not more sixty (60) days, date of the meeting. Such notice shall se he date, time, meeting, the purpose. place of the of Trustees. 1 be held quarterly. to time by the Board Hers may be of the Board of tin>7 shall be ~~y meeting of~e members, sent or delivered to each voting ~ the meeting, excluding the and in case of a special ~oazd of Trustees shall be held Fire Administration Building by the Board. Trustees may be called at of the Boar -ard of T es. Special meetings of the Board of order of the President and one other member g shall be held at the Fire Administration within the City as designated by the Board. A schedule of the regular meetings by the Secretary to~ meeting, excluding in case of a special kepfon file at the Association offices. If the Board of Trustees e g at a time or place different from the time or place stated in its cluding any special meeting, a notice shall be sent or delivered tee at least five (5), but not more than sixty (60) days, before the of the meeting. Such notice shall set forth the date, time, place, and the purpose. 8.8 Order of Business. At the annual, regulaz and all special meetings, the order of business shall be as follows: (a) Calling to order by the President (b) Roll call (verify quonun} (c) Secretary's Report (reading of previous minutes) (d) Treasurer's Report OC201 V1.3.1 (c) Report of the Board (member meeting) (d) Report of other committees (board or member meeting) (e) Old Business (fj New Business (g) Adjournment 8.9 uorum. A majority of the Board of Trustees then in office and 25 percent of the active members of the Association shall constitute a quorum for the transaction of business at their respective meetings. _ 8.10 Open Meeting Law. The association is governed . Stat. § 13D.01 which requires that all meetings of the Association be open to the p w e exceptions. All notices provided for in this Article shall comply with M~ . § 13D. hich requires at a minimum that: (a) a schedule of regular meetings be (b) for special meetings, a notice will be pl the Association has no regular meeting alert the public. ~~ FIDU 9.1 Board of the special fund. Board of Trustees i~ Special Fund and are Section 356A~r~ file at~tlie Association lobr of the mee~'Eing room if no bulletin boadd in which to ach membe f the Boaz~of Directors, also acts as a trustee -d o ectors there a also acts as the Board of Trustees. The with 'nistering re ent and ancillary benefits under the les the Stan d of care set forth in Minnesota Statutes Prohibi nsac N fiduciary of the Association shall cause the to engage in sactio e fiduciary knows or should know that a transaction Ite of the folio dire r indirect transactions: (a) r excha or leasing of any real property between the Association and a bo em , (b) lendin money or other extension of credit between the Association and a board member or member of the Association; (c) furnishing of goods, services, or facilities between the Association and a board member; or (d) transfer to a board member, or use by or for the benefit of a board member, of any assets of the Association. Transfer of assets does not mean the payment of Association benefits or administrative expenses permitted by law. Lx201_VI.3.1 9.3 Nonfiduciary Actions. Although each member of the board of directors of the nonprofit corporation through which the Association is organized is also a trustee, the boazd of directors may make routine business and management decisions without being subject to the standard of caze that applies to fiduciaries under Minnesota Statutes Section 356A.04. These decisions include, but are not limited to, business decisions regarding fund-raising activities, disposition and management of the General Fund, merger or dissolution of the Association and, subject to approvals that may be required from the membership and Municipality, whether to establish, amend, or terminate benefits offered through the Associatio embers of the board of directors shall at all times discharge their duties in good faith, in ann they reasonably believes to be in the best interests of the Association, and with an ordinarily prudent person in a like position would exercise under similar circ ces. 10.1 Funds. All money received from the funds, the General Fund and the Special Fund. Dist accordance with Minnesota Statutes and~les and t 10.2 General Fund. The fund fines, initiation fees and entertainments upon a majority vote of the~bershil suited to promote the of the General Fund, . other money separate only f e h be kept in t~vo separate the funds shall be in Association. Associate om: dues, donations, I is Association from any tax sources and rred to said funds, shall be kept in a as the Special Fund and shall be disbursed e and and may be disbursed. •d o ees for any purpose reasonably s me ers. All expenses shall be paid out to be disbursed from the Special Fund. pension benefits in accordance with these bylaws. benefits in accordance with these Bylaws. eve expenses authorized under Minn. Stat. Sect. 69.80. 10.4 De osits. All money belonging to this Association shall be deposited to the credit of the Association in such banks, trust companies, or other depositories as the Boazd of Trustee may designate. Board of Trustees shall make deposits in conformance with Minnesota Statutes, the Bylaws and the investment policy. DC201_Vt.3. i ARTICLE XI APPENDICES INCORPORATED IN BYLAWS The following appendices attached hereto are expressly incorporated herein as a component of these Bylaws, with the same legal force and effect of Bylaws. Appendix A: Bylaw Amendment History. Eagan Firefighters Relief Association Defined Benefit to Defined 12.1 Amendment of Ar Articles of Incorporation must be majority of the active members. the proposed amendment must precede a be considered and must include the subst proposed, the members may demand a m consideration of the propo ndmen within 60 days. 12.2 Ame t of s of Board of Trustees by the Retirement Plan. Amendments to the rd of Trustees and by a directors, proper notice of e ent. If an amendment is tees within 60 days for the Board would not occur :orporation may be amended by the of the Trustees then in office, at a ed amendment have been given. T] authority of the Board to exercise the power of the 1 endment law~The Bylaws of the Association may be amended at any regular or sp eeting by ote oftwo-thirds of the active members present and voting, provided that a is pr nt; and provided further that notice of any proposed amendment or amendments sh i by posting or reading the same at a regular or special meeting not more than thirty-one ays preceding that upon which such amendment or amendments are to be acted upon, and th notice is mailed to each member at last known address not less than ten (10) days prior to such mailing. DC201_V 1.3.1 Appendix B: No appendix. APPROVED AND ADOPTED by the Board of Trustees, this 13th day of December, 2005. nc2oi vi.~.> >o MINNESOTA FIREFIGHTER PENSION CONSULTANTS APPENDIX A -Bylaw Amendment History For a complete summary of the amendments and, if applicable, the Board's rationale and purpose for the change, refer to the Board of Trustee meeting minutes listed with the effective date of the applicable amendment listed hereunder. Effective Date Meeting Minutes Summary of Change January 1, 2006 December 13, 2005 (Board of Trustees) Restateme d Appendices in their February 27, 2006 (Membership) entirety a of su g to the MNFPC Bylaw (Municipality) Solu ' t provide liant documents, a e forms and p es, and trustee rt. DC201 V l . I.1 A-1 O 2005 Mascots FinfigMc Paaion Ca~sui~, L.LC MINNESOTA FIREFIGHTER PENSION CONSULTANTS APPENDIX B - [This page intentionally left blank.] DC201 02003 Minnaola Firefighttx Ptmion Caroultargs. LLC. All rights rtxerved. B-I MINNESOTA FIREFIGHTER PENSION CONSULTANTS APPENDIX C - [This page intentionally left blank.] D(7A1 02005 Minnesota Fiieti~hta Panian Camulhrgs, L.L.C. All ri~hta resmad. C-1 MINNESOTA FIREFIGHTER PENSION CONSULTANTS OC201 r 1.4.1 O 2006 Minnesota Firefighter Pension Consultants, LLC TABLE OF CONTENTS Page ARTICLE I NAMES, PURPOSE AND OTIIER GENERAL INFORMATION ......................................... 1 1.1 Name of Municipality ............................................................................................. 1 1.2 Name of Fire Department ....................................................................................... 1 1.3 Name of Relief Association .................................................................................... 1 1.4 Federal Taxpayer Identification Number ............................................................... 1 1.S Name of Plan ................................................................. ................................ 1 1.6 Original Effective Date of Plan ................................ .......................................... 1 1.7 Purpose ................................................................. ...................................... 1 ARTICLE II DEFINITIONS AND INTERPRETATION ................ ............ .................................... 1 2.1 General Definitions ................................... .... ............. ............................ 1 2.2 Interpretation ........................................ ................................ ....................... 4 ARTICLE III VESTING ............................................... .............. ........................... 3.1 Full Vesting of Account ....................... ......... ........................ ... 3.2 Partial Vesting of Account....................... .................................... 3.3 Determining Years of Active Service for ................................... ARTICLE IV DEFINED CONTRIBUTION 4.1 Allocation Rules ................. 4.2 Adjustment for Earnings..... 4.3 Adjustment for Expenses .... 4.4 Valuation eft~ial Fund a ARTICLE V RETI S.1 El: S.2 Ai 5.3 S.4 ARTICLE V[ 6.1 6.2 6.3 r ............... a .............. 4 .............. 4 .............. S ........................................... S .......................................... 6 ............................................... 6 is to Participants ................... 6 ............ ............................................................................6 irement ne ><t ............................................................. 6 nent Ben .................................................................. 7 ....................................................................... 7 ..................................................................................... 7 ..................................................................................... 8 ................................................................................... 8 Distribution ................................................................... 8 ration of Beneficiary ................................................... 8 ~enefits ........................................................................... 9 . ...................................................................................... 9 ...................................................................................... 9 PPEAL~ROCEDURE ......................................................................................................9 Right of Appeal ....................................................................................................... 9 Denial of Benefits ................................................................................................... 9 Review Procedure ................................................................................................. 10 ARTICLE VII CLAIMS AGAMST BENEFICIAL ~iTEREST ...............................................................10 7.1 Nonassignability ................................................................................................... 10 7.2 Chazge for Litigation ............................................................................................. 10 DC201 v I.A.I i O 2006 Minnwots Firofightu Pension Consultants. LLC 7.3 Domestic Relations Orders ................................................................................... 10 ARTICLE VIII MILITARY SERVICE AND LEAVE OF ABSENCE .....................................................12 8.1 Military Service .................................................................................................... 12 8.2 Participation During Leave of Absence ................................................................ 12 ARTICLE IX RIGHT TO AMEND, DISCONTINUE OR TERMINATE ................................................12 9.1 Amendment ...........................................................................................................12 9.2 Consolidation and Plan Benefits ..................................... ................................. 12 9.3 Termination of Plan .................................................... ...... ............................ 13 ARTICLE X MISCELLANEOUS ........................................................ ..........................................13 10.1 Governing Law ................................................ ........ ................................. 13 10.2 Binding Erect ............................................. .... ............ ............................ 13 10.3 Authority of Boazd of Trustees ..............~~................... ........................ 13 C)C201 v 14.1 ii O 2006 Minnesota Fircf'iahter Pension Consultants, LLC EAGAN FIREFIGHTERS RELIEF ASSOCIATION DEFINED CONTRIBUTION RETIREMENT PLAN BY THIS INSTRUMENT, effective as of January 1, 2006, the Boazd of Trustees of the Relief Association amends and restates its existing defined contribution pension plan for the benef t of its eligible members. ARTICLE I 1.1 Name of Municipality: City of Eagan ~ ~ 1.2 Name of Fire Department: Eagan Fire Dep 1.3 Name of Relief Association: Eagan Firefi Relief ssoci Address: 3795 Pilot Knob Road, Eagan, ~MN 5 1.4 ion limber: 41-60779 1.5 Name of Plan: Eagan Firefighters 1] Plan 1.6 Ori final Effective lan: May 1.7 Pu ose. T ose of lan is to the Relief Association ipan and their Retirement ode retirement benefits to eligible members of ARTICLE II 2.1 G Definitions. a foll~Wing words and phrases when used herein shall have the following m s except a erwise required by the context: (a) "A t" s the account established for each Participant for the purpose of recor ocations of state fire aid, Municipal contributions, and forfeitures, as adjuste or any income, expenses, gains, or losses incurred thereon. (b) KActive Service" shall mean active service as defined by the Fire Department, as stated in its policies and procedures, except that Participants shall not receive credit for Active Service nor be eligible for Plan benefits for periods during which the Participant is: (i) a full- or part-time employee of the Fire Department who accrues pension service credit under the Public Employees Retirement Association of DC201 v 1.4. I D-i O 2006 Muu~+ota FaerigMer Paruion ConwltanLt, LLC Minnesota Police and Fire Fund for the same firefighting service; and (ii) an individual whose sole duty is to provide emergency medical services within and for the Municipality; and (iii) an individual whose sole duty is to perform fire prevention functions for the Fire Deparhnent; and (c) "Allocation Date" shall mean each December 31. (d) "Alternate Payee" shall mean a spouse or formers se of'a Participant who is recognized by a Domestic Relations Order as ha ' 'ght to receive all, or a portion of, a Participant's Beneficial Interest r th ,pursuant to Minn. Stat. 515.58, Subd. 4. (e) "Benefcial Interest" shall mean the unt of a Participant ount that is distributable to the Participant or icipantiCBeneficiary in ce with the terms of the Plan. ~ (fl "Beneficiary" shall mean any person entit payable upon or after a P~pant's death. "Board of Trustees" or Association. ve benefits which may be Trustees of the Relief ;riod of m~lfh(s) during which the Participant ve Service requirements as defined by the Fire d rocedures. Participants shall not accrue od of the Break in Service. A Break in ervice leave described in Section 8.1. A shall be reduced by a qualifying Break in adopted bylaws of the Relief Association. the Internal Revenue Code of 1986, and amendments thereto. (1) "D>I r "Disabled" shall mean the inability of a Participant to engage in the pe nce of his or her duties by reason of a medically determinable physic or psychological impairment arising out of and causally connected to an act of duty, which can be expected to last for a continuous period of not less than twelve months or can be expected to result in death. Disability shall not be applicable to non line-of--duty causes. A Participant's Disability shall be determined by the Board in its sole discretion. "Disability Pension" shall mean the Participant's Disability benefit under Section 5.4. DCZ01 v 1.4. I D-2 O 2006 MiruKSOta Firefighter Pension Conwlttmts, LI.C (m) "Domestic Relations Order" shall mean any judgment, decree or order (including approval of a property settlement agreement) that complies with the provisions of Minn. Stat. §§ 518.58 or 518.581. (n) "Inactive Member" shall mean an individual who: (i) was a member of the Relief Association and a Participant in the Plan; (ii) ceased Active Service with the Fire Department whe the individual's Account was 0% vested; and (iii) whose Account shall be forfeited pursuant t n 4.1 if the individual does not resume Active Service with the De ent within five years. (o) "Month of Active Service" shall mean comple ctive Service as defined by the Fire Department, ass in its policies and p es. (p) "Normal Retirement Pension" a a P ipant's fully v d retirement benefit under Section 5.1. (c~ "Participant" shall mea ember of the R ssociation who accrues benefits under the Plan. (r) "Plan Year" shall mean the end (s) "Qualific cedures" sh ean writt procedures adopted by the Board of Trus to: (i) "dete wh r a Domestic tions Order may be honored under the law an an• d (ii) 'nist 'butions under such orders. The proce shall plemented within a reasonable time after receipt of a domestic rela s or by the Board of Trustees. Qualification Procedures must tt an Alt to Payee to designate a representative for receipt of copies of s sent t e Alternate Payee with respect to a Qualified Domestic Relations (t) "Speci~und" shall mean the fund established pursuant to Minn. Stat. 424A.05 used to fund benefits under the Plan and for other purposes permitted by statute. The assets of the Special Fund shall be invested only in securities authorized by Minn. Stat. 69.775. (u) "Surviving Spouse" shall mean any person who was the dependent spouse of a deceased active member or retired former member, living with the member at the time of the death of the active member or retired former member, for at least one DCZO t v f .4. t Q3 O 2006 Minnaots Firefighter Pension C°nsultants. LLC yeaz prior to the date on which the member ceased Active Service and membership. (v) "Valuation" shall mean a determination of the fair market value, as of a given date, of an investment security or Special Fund portfolio. Such determination shall be made by an investment manager, certified public accountant, actuary or other professional as designated by the Boazd. The fair market value shall be determined based on the value at which the investments could be sold on an open market. Where appropriate, the Board shall have the dis tion to use an independent appraiser to value the investments. This n also applies to the process of revaluing Participants' Accouits and an er appropriate sections of this Plan where assets or Participants' Accounts ed." "Valuation Date" shall mean each by the Board of Trustees in their di "Year of Active Service" shall service pensions payable, a peri Fire Department. 2.2 Interpretation. The words defines them except where specified otherwise in herein in the singular shall include the plu masculine shall include the feminine. 3.1 interest 3.2 with 5 b ess than 6 t less than 7 but less than 8 8 but less than 9 9 but less than 10 10 but less than 11 11 but less than 12 12 but less than 13 13 but less than 14 14 but less than 15 15 but less than 16 events or with the the meanings assigned to ~Propriate, words used !~ the singular, and the have a fully vested and nonforfeitable n of 20 Years of Active Service. vesting schedule shall apply to a Participant Vested Percentage 40% 44% 48% 52% 56% 60% 64% 68% 72% 76% 80% dates designated DC201 v 1.4. I D-4 O 2006 Minnesols Fircfighta Pauion Caroultants. L.i,C 16 but less than 17 84% 17 but less than 18 88% 18 but less than 19 92% 19 but less than 20 96% 20 or more 100% 3.3 Determining Yeazs of Active Service for Vesting. All Years of Active Service shall be taken into account for purposes of determining a Participant's vested Account, including Years of Active Service with the Fire Department prior to the Effective Date ARTICLE IV 4.1 Allocation Rules. Each Participant who has at a Plan Year is eligible to share in the allocation of c Participant's allocation will be equal to the ann procedures adopted by the Trustees. If the Participant Service during the Plan Year, the Participant's allocato the number of Months of Active Servic~redited to the purposes of this Section 4.1, "contri (a) Any amount of fire state aid (b) Any amoun unicipal levies o r from aid. Any Participant that allocation of ~~~ consist of: Month of Service during for such Plan A d m the writte ies and to a full Ye f Active Plan Year shall be prorated for ;nt for the Plan Year. For Relief A~ociation: and to ~ lief Association raised from le r enue sources exclusive of fire state 1h for a Plan Year shall also share in the Participants' Accounts since the preceding Forfeiture y Ina ember who, as of the Allocation Date, has not been credited wit Acti Service with the Fire Department for a period not shorter n five year r (b) Fo es o enon-vested portion of the Account of any Participant who retires or o erminates from the Fire Department during the Plan Year that contain a Allocation Date prior to becoming fully vested in the amounts credite to the Participant's Account. Forfeitures shall be allocated to an eligible Participant based on the number of Months of Active Service credited to the Participant for the Plan Yeaz, as compazed to the total number of Months of Active Service credited to all Participants eligible to share in the allocation. Any moneys or property donated, given, granted or devised by any person which is specified for use for the support of the Special Fund will be allocated in the same manner as forfeitures to the Accounts of Participants eligible to share in the allocation of contributions for the Plan Year. DC201 v 1.4. I D-S O 2006 MinrKeota Firefighter Peroion Catwlhnts, [.l.C 4.2 Adjustment for Earnins;s. Except as otherwise provided in Section 5.3, investment earnings, gains and losses of the Special Fund will be credited to Accounts as of the most recent Valuation Date based on the ratio that each Participant's Account balance on the prior Valuation Date bears to the total balance of all Accounts on the prior Valuation Date. 4.3 Adjustment for Expenses. Administrative expenses of the Special Fund authorized under Minn. Stat. 69.80 shall be deducted in equal shares from Account balances. Other fees and expenses for managing the Special Fund shall be deducted in proportio o the share of assets of the Special Fund to the credit of Participants' Accounts. 4.4 Valuation of Special Fund and Accounts and Repo Special Fund and the Account of each Participant shall be least annually, the Relief Association will provide each P~ Participant's Account balance and vesting percentage any Account transactions (such as distributions, co uti Valuation period. TICLE V 5.1 Eligibility For Normal Retiren Retirement Benefit a Participant must (a) Be at lea,~~~f age; ts. A Valuation of the as o Valuation Date. At ant with ement of the lost recent tion Date and d forfeitures) ~ the ve a Normal (b) Hav~Activt~rvice with th>~jy~ Department ("retired"); (c) ~compl ervice with the Fire Department ("vested"); Have bee be~ standing of the Relief Association at least 5 years prior to retir t. A Participant 'ntends to ire and request Plan benefits must file a Notice of Intent to Retire and Benefit Pay eque pplication. Such notice shall be in writing and filed with the Relief Association. of Intent to Retire and Benefit Payment Request application for Plan benefits shall be idered a valid notice of intent to retire when approved by the Board. Upon approval of the otice of intent to retire, the Relief Association shall provide Special Tax Notice Regarding Plan Payments or any other notices to the Participant as required by state or federal law with respect to pension or benefit payments. The determination and distribution of the Participant's Normal Retirement Benefit shall be made as of the Valuation Date next following the Participant's filing of the notice of intent to retire. Distribution shall not be made as of a Valuation Date that is earlier than the date the Boazd approves the Participant's notice of intent to retire. DC201 v l .4. I D-6 O 2006 Minnesota Firefighter Peruion Canwltants, LLC 5.2 Amount of Normal Retirement Benefit. A Participant's Normal Retirement Benefit shall be equal of 100% of the Participant's Account balance. 5.3 Deferred Pension Benefit. If so provided in Section 3.2, a Participant whose Active Service with the Fire Department ends before completing 20 Years of Active Service will be eligible for a Deferred Pension Benefit if the Participant completed at least 5 Yeazs of Active Service with the Fire Department before retirement and was a member in good standing of the Relief Association at least 5 years prior to such retirement. A Participant's Deferred Pension Benefit shall be detern~ined as follows: Account balance of the multiplied V Participant by Such Deferred Pension Benefit shall be payable when a: Intent to Retire and Benefit Payment Request appli on for Participant's retirement or, if later, when the P ~ reac'~ In lieu of adjusting a Participant's unpaid Deferred Pensi 4.2, the Board of Trustees shall adjust a icipant's unI the investment performance rate actually on that 1 benefit amount is invested by the Relief A ~n a maintained by the Relief Association or if t de e investment vehicle held by the Relief Associ n. of the amount transferred~~arate acco d the equal to the separate held by the Relief A; or the fair 5.4 Disabilit~Pension.~ Service ma for a Pension be equ C An su 'ability Pensi Id in to further a pension an rvi~ stage for ears of it at the 50. Notice of efit amount pursuant to Section erred Pension Benefit amount at ~ e assets if the deferred rate t established and amo is invested in a separate ears the full investment risk payable to the Participant is of the separate investment vehicle ~lfies Disabled while engaged in Active lieu of retirement. A Participant's Disability Participant's Account balance. 6rdance with this Section 5.4 shall be in lieu of all rights benefits. The Participant a elig' to receive the Disability Pension upon approval of the Board of A Disability Benefits application for a Disability Pension shall be made within six months after such Participant has ceased Active Service with the Fire Department. Written application shall be made to the Boazd of Trustees setting out the nature and cause of such Disability. The application shall be under oath by the Participant or his/her immediate family. The application shall be tabled until the next Board meeting so that a physician of the Participant's choice may examine the Participant. The Board of Trustees has the discretion to request that another doctor, Trustees. A written a physician of the Participant's choice shall be required for payment of a Disability Pensio a report shall set forth the diagnosis and prognosis of the Disability, disease or injury of th articipant and its probable duration of permanence. A Participant's statement as to pain or other symptoms will not alone be conclusive evidence of Disability. DC201 v 1.4.1 D-7 O 2006 Mw~esota Firefighter Pension Consultm~ts. LLC selected by the Board of Trustees, examine the Participant. Final determination of Disability will be based on the reports of at least one doctor, and by a 2/3 majority of the entire Board of Trustees at the subsequent Board meeting. If the Participant who applied for a Disability Pension disagrees with the Board's determination, the Participant may, within sixty (60) days from notice of such action of the Board of Trustees, file a written appeal of the Board of Trustees' determination pursuant to the Plan's appeal procedures described in Article VI. 5.5 Supplemental Benefit. Upon payment of a lump sum t must pay a supplemental benefit to the recipient. The supplen Special Fund. The amount of the supplemental benefit equals distribution, but in no case may the amount of the supplemeu' 5.6 Forms of Payment. Plan benefits payable to sum payment. The Participant shall specify that th~ (a) a check payment payable to the Partici withholding, as may be required; or (b) a direct rollover to an indi retire the Code. 5.7 Re a ment of Lum Sum Distributio For with the Fire Department; fives a lump i; vested Account; and (c se returns to tip amount is payable t articip no additions el Participant shall re ay evio received dis ~ Relief Association it may be paid from the of the lump sum deed $1,000. shall be ni -ade in the single dump federal i tax in Section 408(a) of ~ (a) ceases Active Service the Plan of the Participant's vi1`e, no additional service pension is creditable to the Participant, and the 5.8 Surv' t and ati icia If a Participant in Active Service dies, the Partic' s sh eive a lump sum payment equal to 100% of the Partic' is Account. aym 'll a paid to the Participant's Beneficiary as soon as ad 'vely feasible ing th icipant's death and the receipt of the Survivor Benefit Payment A Participant's~Fficiary smell be as follows: (a) the P~nt's Surviving Spouse; (b) if no Surviving Spouse, the Participant's surviving children; (c) if no Surviving Spouse or surviving children, the Participant's designated Beneficiary or Beneficiaries. To designate a Beneficiary, the Participant shall complete, sign and file with the Relief Association a designation of Beneficiary on a form to be provided by the Relief Association or by other written form acceptable to the Relief Association. On said form, the Participant shall designate a Beneficiary, which must be a natural person, to whom shall be paid any sum DC201 v 1.4.1 D-8 O 2006 Minnesota Firefighter Pension Consuttmtts, LLC which may be payable on account of the Participant's death (reserving, however, to the Participant the power to change the designation of Beneficiary using the Change of Beneficiary Designation form from time to time). If the Participant has no Surviving Spouse or surviving children and the Participant fails to validly designate a Beneficiary pursuant to (c) above, then no survivor benefit shall be paid on behalf of the Participant and the Participant's Account shall be forfeited and will be credited to the Special Fund. 5.9 Maximum Limitation on Benefits. Notwithstanding any contrary, a Participant's annual addition under the Plan shall not permitted under Section 415 of the Code. ~ 5.10 Required Distributions. Notwithstanding any distribution to a Participant must be made or begin by the later of the calendar year in which the Particip Such distributions shall be determined and made Code and regulations promulgated thereunder, include benefit requirement of Treasury Reg. Section 1.401(a; incorporated herein by reference. ~ ~f the Plan to the the maximum amount ~f the P the contrary, a ~ of the ca year following 70%Z or cease 've Service. nth Section 401 of the. provisions of which aze 5.11 Abandoned Benefits. In the event ssociation a with reasonable effort to locate a Participant or Beneficiary entitle o a 'on unde a Plan, the benefit distributable to such Participant or Benefici ha d will be credited to the Special Fund. Such forfe' 1 occur no a than six months after the Relief Association's efforts t ate articipant o eneficiary began or, if later, the eazliest date permitted under Mi~~. 356 If a Participant or makes a clay n forfeited pursuant to this Section 5.11 such forfeited amount shall be restored, any g loss umng subsequent to the date of the forfeiture. If the it amount ds $ e inactive or former member again becomes a Relief Asso 'on, the rfeited amount will be restored to the credit of the person. ARTICLE VI APPEALS PROCEDURE 6.1 Ri t of A_ppeat In the event the Board of Trustees denies an application for a service or ancillary pension benefit, the Participant or Beneficiary whose application was denied (a "claimant") shall be entitled to the right to appeal the determination. 6.2 Denial of Benefits. If an application is not approved, the Board shall return the application to the claimant within 30 days, noting which requirements the claimant does not meet. Thereafter, the claimant shall be furnished with the opportunity to be heard by the full Board, on the question of whether the claimant meets all of the eligibility requirements. The DCZ01 v 1.4.1 D-9 O 2006 M Fitefighta Petuion Catwltanb. LLC claimant shall indicate that he or she intends to appeal by furnishing the Boazd with a written intent to appeal within 30 days of receiving an adverse determination. 6.3 Review Procedure. Upon receipt of the written intent to appeal, the Board of Trustees shall hold a special meeting within 60 days or receipt of the written intent to appeal. Timely notice of the meeting shall be given to the claimant at least 1 S days prior to the special meeting. The claimant shall have the reasonable opportunity to be heard by the Boazd of Trustees at the special meeting with regard to the negative determination. The Board reserves the right to engage the services of an arbitrator or mediator, acceptable to both partj~s, at any time during the appeal. ARTICLE VII 7.1 Nonassi ability. No Participant or Benefic' the Plan or in the Participant's separate Benefici vesting thereof, or in any of the assets comprising the distribution thereof, and shall have no power to alienate, same, while in the possession or control f the Plan, nor thereof, either in whole or in part, nor sh interest o subject to attachment, garnishment, execu er le Plan, except as provided in Minn. Stat. 518. 11 through a Participant sl: Association, the res Association should to any person claiming by the cost tot shall be c e , 7.3 D Board of pursuant to a llorn Order with respect shall apply: of, pledge or encumber the Plan recognize any assignment ' ipant or Beneficiary be ' e in the hands of the yr ded herein. he event tha articip~ any person claiming by or nc ve 0 f e e s. Notwithstanding any provision to the contrary herein, the interest of a Participant in the Plan to an Alternate Payee Order. In the event the Plan receives a Domestic Relations is Beneficial Interest in the Plan, the following provisions (a) The Boazd shall promptly give written notification to the Participant and to the Alternate Payee of receipt of a domestic relations order and of Plan Qualification Procedures. The Boazd shad then proceed with Qualification Procedures to determine whether the order is a Domestic Relations Order can be honored and shall notify the Participant and Alternate Payee (or the Alternate Payee's designated representative) of its determination. e any eq ble or leg proceedings against the Relief rse to the intiff, or in the event that the Relief commence ch proceeding against any Participant or ' ant, t esult of which is adverse to the defendant, ringing the proceeding, as the case may be, and permitted by law, to the Account of the Participant ount of the Participant's Account shall be included shall have any trans a interest in st them, either before the DC201 x1.4.1 D-10 O 2006 MimKwts Firctighter Pension Consulhms, LLC (b) Disputed funds shall be disposed of as follows: (i) During the period in which the Qualification Procedures aze in progress, the Boazd shall separately account for any amounts which would be payable to an Alternate Payee if the Domestic Relations Order can be honored. (ii) If it is determined the Domestic Relations Order can be honored within the 18-month period commencing on the date payme is are to begin under the order, the Board shall pay the amounts design a order, including any interest, to the Alternate Payee. (iii) If the Board determines that the Dom Rel Order cannot be honored or if the 18-month period c ed in (i ve elapses and the qualification dispute has not bee ,the Bo 11 pay the segregated amounts, together earnings or losses, i fired, to the persons who would haver the nts if the orde of been issued. (iv) prospectively and t» benefits attributable 18-month period described in Payee shall proceed ~ Alternate Payee for cation. Zelatia~Fder requiring that benef is be 'articip t is eligible to receive benefits under a Domestic Relations Order cannot ~parate accounting of the amounts that e Payee. If the Alternate Payee is thereafter ed for the benefit of the Alternate Payee. ua t to a Domestic Relations Order shall be made only as P ayment to an Alternate Payee may not commence until .i valid Notice of Intent to Retire and Benefit Payment and the Participant's benefit becomes payable. To ten rmitted by law and except as otherwise provided under a Dom ations Order, the Board may, on a uniform basis, charge the reasons and necessary expenses associated with the review of a domestic relations order and the implementation of a Domestic Relations Order to the accounts of the Participant and Alternate Payee. OC201_v1.4. I D-I I O 2006 Minnesah Firefighter Pauion Consultmns. LLC ARTICLE VIII MILITARY SERVICE AND LEAVE OF ABSENCE 8.1 Military Service. Subject to restrictions stated in this section, a Participant who is absent from firefighting service due to service in the uniformed services, as defined in the Uniformed Services Employment and Reemployment Rights Act ("USERRA"), will share in contributions and investment returns pursuant to Section 4.1 and 4.2 of the Plan for the period of the uniformed service, not to exceed five years, unless a longer period is required under USERRA. To be eligible for such allocation of contributions and investment re a Participant must return to firefighting service with coverage by the Relief Associat' or by the successor to the Relief Association) upon discharge from service in the unifo a within the time frame required in USERRA. However, allocation of contributions inves t returns is not authorized if the Participant separates from uniformed se a th a des ble or bad conduct discharge or under other than honorable condi~~ Allocation of contributions and investment returr~ provide notice to the Fire Department that the Partici~ uniformed service, unless it is not feasible to provide the situation. _ 8.2 Partici ation Duren Leave of Abs consent of the Fire Department, or is on lea o , in Section 8.1, the individual shall remain a is absence. The definition of 'n Service sh constitutes a Break in S ch Participa Department within 'od gr for such lei service, within the en vide r in Section Participant's Active Serve f the such period in S 8. , Participa curs expi of the app is be pav if the to ~o provide sere in the due to the emergency nature of Participant i e of absence with the because o ilitary service as described ~p eriod of such leave of ermine er such leave of absence does not rn to Active Service with the Fire of absence, or, in the case of military shall be conclusively presumed that the of expiration of such leave of absence, or may be. However, if the death of such able period, the survivor benefit, if any, shall ARTICLE IX DISCONTINUE OR 9.1 Amendment. ell,ef Association shall have the right to amend this Plan at any time to any extent that it m eem advisable. Such amendment will be stated in an instrument in writing executed by the Relief Association. Upon adoption and execution of such instrument, this Plan shall be deemed to have been amended in the manner therein set forth, and Participants shall be bound thereby. 9.2 Consolidation and Plan Benefits. The Relief Association has not been consolidated with another relief association pursuant to Minn. Stat. 424B.02. DC201 v 1.4.1 D-12 O 2006 Minnesota Firefighter Pension Consultants, LLC 9.3 Termination of Plan. Upon dissolution of the Relief Association, after the settlement of nonbenefit legal obligations of the Special Fund, the Board shall transfer the remaining assets of the Special Fund, as securities or in cash, as applicable, to the chief financial official of the Municipality (or, if applicable, to the chief financial official of the municipality with the largest population served by the Fire Department if the Fire Department was an independent nonprofit firefighting corporation). The Board shall also compile a schedule of Participants to whom a service pension is or will be owed, any Beneficiary to whom a benefit is owed, the amount of the service pension or benefit payable based on the Bylaws and state law and the service rendered to the date of the dissolution, and the date on which the pension or benefi ould first be payable under the Bylaws and state law. The Municipality receiving the remaining assets of the Spec account in the municipal treasury to function as a trust fund Beneficiaries eligible for Plan benefits. Upon proper app ' which the service pension or benefit is payable; -the rn 1= benefit due, based on the schedule described above the Association. The trust fund must be invested an ed 69.775 and Chapter 356A. Upon payment of the last s any remaining assets in the trust fund may be transferred 10.1 Governing Law. under the laws of the S Any Minnesota la a 10.2 Bind' personal esen 10. on of Bo; authority each anc under the pr ns of in the internre or 11 establish a separate artic and their ~on or a e initial date on easurEr sha xhe pension or .r records of th olv d Relief ent with Minn. .Section or benefit d and owing, general fund of the municipality. fired, and governed in all respects by federal law. are described in Appendix F. upon and inure to the benefit of the heirs, assigns of any and all of the parties hereto. ustee a Board of Trustees shall have full power and ~t an ing which it is specifically required or permitted to do and to determine conclusively for all parties all questions arising ation of the Plan. DC201 v 1.4.1 Q 13 O 2006 Minnesota Firefighter Pension Consultants, LLC MINNESOTA F I I:I:FIGHTER PENSION CONSULTANTS APPENDIX E DEFINED BENEFIT TO DEFINED CONTRIBUTION HISTORY Effective: January 1, 1997 The following chart summarizes provisions in the Association's bylaws relay o its conversion from a Defined Benefit to a Defined Contribution plan. Information contained h m reflect municipal contractual agreements still in effect and benefit payment determinatio edures that are grandfathered for members who were deferred prior to the Effective Date of the co om the Defined Benefit to the Defined Contribution plan. w Article X, DC Accounts . 10.1 Type of Benefit DC Plan effective ct ed, Perm tly Disabled or Retired Members an 1, 1997. 10.2 Initial Balances (Active) In' ' 1 allocation to the t of each Active Member on Jan 1997 in lieu of pension accrued under byla prior to Jan 97, shall be based on a formu in E-1 (from aws prior to January i, 1997). 10.2 Initial Balances (Defe Initial al to the t of each Deferred Member equal to s member's p sum service pension calculated under the b ws in effect when the member terminated active membership. ed members and zero coupon bond are ted in A e E-2. 10.3(a) Alloca ~ o Accou t period of January 1, 1997 through December 31, 2 member's allocation wilt be equal to the annual arnount of $3,385 incased by 4% each year,~lus forfeitures ed for the number of months (measured as any 30-day od) of Active Service per contract included in Appendix -3. 10.3(b) Pa f Contribut s Bylaws effective January 1, 1997 refer to the specific payment schedule with the City of Eagan as for the period of Janu 1, 1997 throu December 31, 2004. 10.3(c) Earnings Deferred and Retired Members as of January 1, 1997 shall not share in investment earnings of the plan assets. The value of such member's Account shall not share in the investment earnin s of the Ian's assets. 11.1 Pension Benefit Entitlement Deferred and Retired Members as of January 1, 1997 shall be paid out as soon as administrative practicable and no member shall have an option to defer payment. If the assets of a member's Account are not sufficient to pay the service ension, the deficienc shall be id out of the S cial Fund DC201 V I.1.1 A2005 Mlnnaw~a Firefightcr Pauion Consultaim, LLC. All rights ramod. F.• MINNESOTA FIREFIGHTER PENSION CONSULTANTS • ~~. - . and char ed as an administrative a nse. 11.3 Survivor Benefits The Surviving Spouse, Surviving Children or Beneficiary of all Deferred and Retired Members as of January 1, 1997 shall be eligible for a Survivor Benefit. Bylaws effective January 1, 1997 define "Surviving Child" as a minor under age 18 or a child over the age of 18 but under 2 ho was enrolled as a full-time student 11.5 Vesting The account of all Deferred etired Members as of January 1, 1997 shall bed % vested because the investment (zero coupon d) p ed for the Account will fund onl the ves d rued be 12.3 Method of Payment The account of all d Retire bers as of January 1, 1997 y defer receipt of the 1 um distribution ecembe 1 of the year in y attain a e 65. N rovisi onflicts with l l. I OC201 V I.1. I 02005 MinrKSOts Firefiglnu Prnsion Conwllanu, LLC. Atl rights reserved. E-2 property of the directors or officers of the Association be subject to the payment of any debts or obligations of the Association. The Association shall indemnify persons to the extent required by the Minnesota Nonprofit Corporation Act, and shall have the power otherwise to indemnify persons for such expenses and liabilities, in such manner, under such circumstances, and to such extent as permitted by applicable law. The board of trustees of the Association retains the discretion to indemnify its members for breach of fiduciary duty. ARTICLE VIII AMENDMENT The. power to adopt, amend or repeal the Bylaws or Articles of this Association, and to establish procedures with respect to the adoption, amendment or repeal thereof, is vested in the membership. ARTICLE IX DISSOLUTION 1. Upon dissolution of the corporation, due to the dissolution of the fire department or for any other reason, its remaining assets shall be distributed in accordance with Minn. Stat. 424B.20. 2. Upon dissolution, the boazd of trustees of the Association shall transfer the records of the Association to the chief administrative officer of the applicable municipality. The boazd shall also notify the commissioner of revenue, the state auditor, and the secretary of state of the dissolution within 30 days of the effective date of the dissolution. IN WITNESS WHEREOF, the undersigned has hereunto subscribed her name this 13th day of December, 2005. Signature oc2oi vt.o.o APPROVED AND ADOPTED by the Boazd of Trustees, this 13th day of December, 2005. tx20t V1.3.t 10