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01/09/2007 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING TUESDAY, JANUARY 9, 2007 5:30 P.M. EAGAN ROOM-EAGAN MUNICIPAL CENTER I. ROLL CALL AND AGENDA ADOPTION II. VISITORS TO BE HEARD ~. ` III. CONSIDER PETITION TO AMEND THE HAWTHORNS RIDGE COVENANT RESTRICTIONS TO ALLOW FOR A COFFEE SHOP ~, ~ IV. DISCUSSION STATUS OF FIRE DEPARTMENT EQUIPMENT / TELESQUIRT VEHICLE V. ECONOMIC DEVELOPMENT AUTHORITY ~• ~ 3 a. Call to Order b. Adopt Agenda c. Northeast Eagan Redevelopment District -Concept Plan Presentation by DART/Atlas of Minnesota to Redevelop District Property South of r ,, Hwy 55 P. a'~ d. Cedar Grove Redevelopment District -Consider Next Steps for Redevelopment of Cedar Grove Core Area VI. OTHER BUSINESS VII. ADJOURNMENT Agenda Information Memo January 9, 2007, Special Eagan City Council Meeting III. DISCUSS THE MODIFICATION OF USE RESTRICTIONS FOR THE HAWTHORNE RIDGE RETAIL CENTER ACTION TO BE CONSIDERED: To provide staff direction regarding use restrictions for the retail property known as Hawthorne Ridge located at 525 Diffley Road. REQUIRED VOTE FOR APPROVAL: Majority of Councilmembers present FACTS: - The City sold the twelve acre parcel at 525 Diffley Road in 2003 to Excel Development. The City had placed restrictions and covenants against the property that prohibited certain uses, one of which was restaurants. The City had acquired the parcel in the 1990's as part of the Diffley Road upgrade and rezoned the property to Neighborhood Business (NB) in 2002. - The strip retail center was completed in 2005. Subsequently, Excel Development had been approached by prospective investors/tenants that had potential interest in a coffee shop and, possibly, a pizzeria. In March of 2006, the property developer/owner approached the City Council to seek clarification of the restaurant restriction. The City Council determined at that time that if a license or permit would be required from the Minnesota Department of Health, it would be considered a restaurant. - Through contact with the Department of Health, Mr. Daniel Schaefer of The Old Lodge Coffee Company, determined that such alicense/permit would be required and, therefore, his proposed coffee house/sandwich shop would be prohibited. - Mr. Schaefer has submitted a petition with 300+ signatures of support for his proposed use. According to Mr. Schaefer, patrons of the other Hawthorne Ridge retail center merchants and many neighbors both north and south of Diffley Road are very interested in a coffee shop at this location. - Notice of this request, including the letter provided by Mr. Schaefer, being before the City Council on January 9, 2007 has been sent to the neighbors adjacent to the subject site. ATTACHMENTS (3)• Location Map on page ~. Schaefer letter and sample petition page on page ~ through A copy of the deed restrictions placed on the parcel prior to sale on page ~ through O Eagan boundary ^ ~ Right-of-way Locate o n Map ~Pareel Area 0 Park Area - building Footprint ` a ! ' f ~ ~ ~ ~ / . ~ ~ • • t. ~ ^ir~~ ~ f ~ i t ' ~7 ^• • S a^ ^ S 'U f ..,. ~ aror ~ a f 7 1~ .: . ~ F, --.^~ ° I' ~~~ h_r ~~~ ~ 1000 0 1000 2000 Feet Hawthorne Ridge Retail Center Map Prepared using ERSI /4cView 3.1. Parcel base map data providetl ~` 1l MnnM~~Qq by Dakota County Office of GIS and is current as of Apol 2005. ~~~ O~ j-Q~ ~ THIS MAP IS INTENDED FOR REFERENCE USE ONLY W E The City of Eagan and Dakota County do not guarantee the accuracy of this information and are S Community Development Department not responsible for errors or omissions. T~I~ OLD LODfi~ CO~~~~ CO1VI~~NY, INC. December 5, 2006 Eagan City Hall 3830 Pilot Knob Road Eagan, MN 55122-1897 Dear Council Members: ~ ~-~ DEC 5 !J ~ 2~~6 I would like to introduce myself and my business to you. My name is Daniel H. Schaefer and I am the owner of The Old Lodge Coffee Company, Inc. My mission is to bring acommunity-friendly business to the newly constructed Hawthorne Ridge-Excel Development located on the corner of Diffley Road & South Robert Street. In the past three weeks I have had the pleasure of meeting a lot of nice people throughout the community that have expressed a very strong interest in seeing a coffeehouse/deli at this location. Attached to this letter you will find signatures of home- owners that live in the immediate area as well as patrons to the already established businesses operating at Hawthorne Ridge. These signatures totaling over (300) are a representation of how strongly in favor the local community and businesses are to see The Old Lodge Coffee Company be allowed to establish itself in the Hawthorne Ridge-Excel Development. Although it was acknowledged at the city council meeting held on March 215C 2006 that there was an interest from the local residents in having acoffeehouse/deli in the center, the clarifications restricting restaurants from doing businesses within the center was set anyway. It was also agreed that what defines a restaurant would be left to that of the state. And within there lies the problem at hand; unfortunately, the state does not have specific classifications for a coffeehouse and would qualify it as a restaurant when issuing a license. With the information that I have gathered over the past two months, it is my belief that the intentions of that restriction were to protect the community from the large commercialized venders. Most often, chain-style businesses do not allow for the necessary alterations that are needed to ensure a proper fit to that of the community they are doing business in. Although the wording chosen is effective in doing as I have just mentioned, it also restricts those businesses that would be able to better the community and be a vital component in ensuring the success of the Hawthorn Ridge Center. 7305 WEST ARGENTA TRAIL INVER GROVE HEIGHTS, MN 55077-2605 PHONE: 651.470.9181 FAX: 651.298.0]28 3 My intention is to provide a fun, friendly and relaxing place. A setting that neighborhood families would gather in to socialize and strengthen their community ties and give the small town feel that most people look for in the ever-growing world we live in. My commitment to this venture is wholehearted and with the amount of enthusiasm that I have received from the community thus far, I feel that The Old Lodge Coffee Company, Inc. would be a great addition to the community and the City of Eagan. With that I ask you to reconsider pour wording in the clarification for the Hawthorn Ridge-Excel Development from March 2150 2006 as to allow The Old Lodge Coffee Company, Inc. to do business at 525 Diffley Road. Sincerely, Daniel H. Schaefer President 7305 WEST ARGENTA TRAIL INVER GROVE HEIGHTS, MN 55077-2605 PHONE: 651.470.9181 FAX: 651.298.0128 • v _ c N 3 'J U ~ O J ~ r ; i O N J ~ 1 (6 ,, m ~ O O O ~ i ,z ~ a °- 0 i W O. Q ~ ~ 7 ~ ~ ~ l!1 c n ' ~ W v ~ _~ ]. O V Y g W _ i R' ~ 0 m 3 ~ Q N = C v -C ~ m o ~ ~ ~ S c -a ~ U C Rf a N m __ r 3 ~ T N N 1 N ! Q y T i ~ L O S .04 i ~ ~ C •fN T Q] ~~ ~, ., ..~ ~ y I ~' G ~ m ~._ ' i'-~ ~ -, \ "ter ~"` .... ~ ~ `'.. ~ c..~ W ~ ~ ? ~` ~ l ~ ' _ W ~' ^'~ ~ ~ 1, _ f ' ~ ~3 +~ ff -v ; <•. ~ •~ .) v ~.J .. J ] ~ ~ v ~u :~ `~ ~ ~ o ~ a ~ llif N 0 ~~ ~ sir; ' 1 ~ ~ 1 ~ ~\ ~ S ~ + i 1~~ ~-, Q ~ .~ t ~ `}` /!. , - 1. '1 '..~ s ~ `, i~, r ~i _ v - - ~ ,.1~" .v\ ~ ; `t, ti's ---- '~ rte, %'~ ., y F ~,_ i U - ~~ ~ _ ;i •`f m Z t ~ ~~ ~ of ! ~/ ^ r. j: ~ ') ~ ~ ~ ~ ~ ~' f- ~ Qom'' z w a ~~ I D ~ ~l \~ ~~~z W ~ ~ ~ ~ Z~ G ~y w C'3 a~ W .. ttl ~ Z ~~?LL v !- z o~Z a ~ ~y; ~cn 11 ~~ ca! _ ~ U ~ ~o v = W ~ ~Q~z ~ c.. a U uVi v D r ~ o N O o co ~ m ~~~ D ~ Z ~ ~ WV V Q w~ .d Q = U Y~. ~ W Q ~ U ~ C ~ W ~ ~ u () U p ~ - 2022768 DECI,ARA.TTON OF RESTRICTIONS AND COVENANTS This Declaration ("Declaration") is made this ~._ day of /UtJU~~1~~-, 2002, by the City of Eagan, a Nunnesota municipal corporation ("Declarant"). RECITALS ---~ ~' WHEREAS, Declarant is the fee owner of that certain real property located in Dakota County, Minnesota legally described as follows (the "Property"): ~ The South Four hundred eighty-four and twenty-nine hundredths (484.29) feet ofthe East ~4 ~ 10 C~ `/2 of the Southeast'/a of Section 24, Township 27 North, Range 23 West lying West of ~~} ~ the westerly right-of--way line of State Trunk Highway No. 3, EXCEPT that part ~ designated as Parcel S on DAKOTA COUNTY ROAD RIGHT-OF-WAY MAP NO. 136 ` ~ ~ on file and of record in the office of the Dakota County Recorder; WHEREAS, Declarant desires to subject the Property to the covenants and restrictions contained in this Declaration; DECLARATION NOW THEREFORE, in consideration of the foregoing premises, Declarant hereby makes this Declaration and subjects the Property to the covenants and restrictions set forth herein, hereby declaring that this Declaration shall constitute covenants running with the land and declaring that the Property shall be owned, encumbered, used, occupied, operated and conveyed subject to the covenants and restrictions described in this Declaration, all of which shall be -- ~ ~- liindiria upon-each per§on-owning ~or acquiring-ariy right, title or iiiferesti ffiereiri arid- their respective heirs, personal representatives, successors and assigns. Use Restrictions. Subject to the terms and conditions of this Declaration and the reservations and covenants contained herein, Declarant hereby declares and imposes upon the Property the use restrictions set forth below: The following uses shall not be permitted upon the Property or any portion ~RECEIVEC~ thereof: r= -;~ - DAKOTA COUNTY TFgASt1R6R-AUDl1t~R r~ ; ,. l~.` ~.. ,r ~,~ . .~ a. Restaurants b. Radio and Television studios c. Motor Fuel Stations d. Drive-thrus e. Convenience Stores f. Car Washes All of the foregoing uses shall be prohibited uses on the Property. 2. Covenants. Declarant hereby covenants that the Property shall not be held, transferred, sold, conveyed, occupied, altered, or used in violation of the restrictions set forth in Paragraph 1 of this Declaration. Reservation. Nothing contained in this Declaration shall in any way prohibit, restrict or limit the Declarant, its successors or assigns, from fully conveying, transferring, occupying or using the Property for all purposes not inconsistent with the use restrictions set forth in Paragraph 1. 4. Bindin Effect. The covenants and restrictions created hereunder shall constitute covenants running with the land and will be binding upon an inure to the benefit . of Declarant's respective successors, assigns, transferees, tenants, employees, agents, customers, licensees and invitees. 5. Enforcement. Declarant shall have the right to enforce by a proceeding at law or equity, al] covenants and restrictions now or hereinafter imposed by the provisions of this Declaration. In view of the purposes of this Declaration and the unique characteristics of the Property, it is acknowledged that money damages to Declarant in the event of a violation of the terms hereof would be an inadequate remedy, due to the irreparable and immeasurable harm done thereby. Accordingly, Declarant shall have the right, in addition to any other remedies available at taw or equity, to apply for and receive from any court of competent jurisdiction in the State of Minnesota, equitable relief by way of restraining order, injunction or otherwise, prohibitory or mandatory, to prevent and enjoin a breach of the terms of this Declaration, or by way of specific performance to enforce performance of the terms of this Declaration. If successful, Declarant shall be entitled to recover from the party violating the terms of this Declaration, - ~ - ~ reimbursement for all costs and expenses of litigation; including reasonable attorneys' fees, witness fees, service of process fees, deposition costs, expert witness fees, and any other costs incurred in securing such relief. 6. Severability. Invalidation of any of the provisions hereof by judgment or court order shall not effect any of the other provisions which shall remain in full force and effect. 2 CITY OF EAGAN, Minnesota 'c~Iral-ea~por ta!{~on /~/j ~; By: Patricia E. A ' da ~ -~ Its: Mayor STATE OF MINNESOTA ) By Mama Karels Its: City Clerk } ss. COUNTY OF DAKOTA ) R The foregoing instrument was acknowledged before me this day of ,c".. ~ , ,r ~/ 2002, by Patricia E. Awada and Maria Karels, the Mayor and City Clerk of the City of Eagan, a Mnnesota municipal corporation, on behalf of the municipal corporation. Notary Public THIS INSTRUMENT DRAFTED BY: SEVERSON,SHELDON,DOUGHERTY & MOLENDA, P.A. 7300 West 147th Street, Suite 600 Apple Valley, Minnesota 55124 (9~2) 432-3130 SAL (206-20691) MIRA McGARVcY NOTARY PUBL{C MINNESOTA My Cammissioh Facpir~s 1171ClQ06 8 Agenda Memo January 9, 2007 Special City Council Meeting AGENDA: Discuss Status of Fire Department Equipment/Telesquirt Ladder Truck. ACTION TO BE CONSIDERED: Determine if immediate replacement of Telesquirt Ladder Truck is appropriate. FACTS: • The Fire Department operates two ladder fire trucks in the City of Eagan. One is a 2002 100' platform truck (Ladder-1) and the second is a 1997 65' "Telesquirt" (Ladder-2). • Ladder Two has had an extensive and long history of repairs dating back to its inception in the fire service, including the windshield falling out when delivered in 1997. The problems have been both chassis and body related. • 2006 has been an especially alarming year for Ladder-Two. According to Chief Mechanic, Tom Streefland we have spent $16,504.09 on repair cost for Ladder-2 in 2006. More importantly Ladder-2 has been out of service for 436 hours, which is about 5% downtime. "Our" fleet average is right around 1%. • The City of Eagan Vehicle Condition Index for Ladder-2 is a 31, which is the needs immediate consideration category. • The truck has been towed twice this year. Once from a structure fire when a small electrical fire in the engine compartment caused the air brakes to lock- up and once when the truck broke down with a full fire crew as they where returning from training at our training facility in Burnsville. Most recently the emergency lights stopped working on the truck. • The truck is no longer viewed as a reliable emergency apparatus by fire command staff. • Our Insurance Service Office rating (ISO) of a 3 was partially based on our ability to have two frontline ladder trucks. Our last ISO rating was preformed in 1997. At that time ISO recommended that the Eagan Fire Department should have two frontline ladder trucks and one reserve ladder truck. The need for ladder trucks is based on the number of buildings that are over three stories or require a fire flow of 3,500 gpm in Eagan. • Ladder Two was purchased as a demonstrator truck in 1997 from General Fire Apparatus for the cost $380,460. • It has a General Fire Apparatus Body, an American LaFrance Truck Chassis and a Telesquirt 65' Ladder. It was the first year of the new American 4 LaFrance Chassis (this was the fourth one made) and the body was built during a period of significant change at General Fire. • The fire department is recommending that we attempt to purchase a remaining 2006 stock unit for two reasons: o Cost savings. A 2006 stock truck will be approximately $30,000- $45,000 less then buying a 2007 model. o Any 2007 truck will require that they be ordered with the new emissions compliant diesel engine. Due to unknown reliability of the changes for the 2007 engines Tom Streefland has advised against purchasing a fire truck with the new style diesel engines until reliability can be determined. • With Council permission, our apparatus committee could immediately prepare and advertise for this replacement ladder truck. Projected cost for the replacement truck will not exceed $600,000. • The estimated trade in value for the current truck is $100,000. • Director of Administrative Services VanOverbeke has identified the following possible funding sources: o General Fund-Fund Balance o Equipment Revolving Fund-Fund Balance o Sale of Equipment Certificates o Referendum In the event immediate replacement of Ladder 2 is authorized, a more detailed analysis of each of these potential financing sources would be undertaken at the completion of the 2006 audit and provided to the City Council for consideration and approval. ATTACHMENTS: Photos of Ladder-2 Q. Vehicle Condition Index ~a `~ ~ 'fi~~. ~. ~ I~ Y -... tfK~,"]'r. 4 .T ~ i,. ~. ,,'' F ~:* x r '~ i ~: ~ .~ W m r m d r m d d Z d O ~ h v) M M .--~ ~ n M r t N d ~ Q ,c, ~ Q o ai ~ O 8 ° a V ro ~ No 'fl '° a v; 0 fa. U N ~ ,~ C O 3 ~, y U O R O ° C a ~ v' ~ c`a U ~ > C 0 ~ tQ ~y y `v O b A ° V C ~~a ei ~ oq w ~ ~ ~ ie U U a` V N° ~ C OA ;= C O Y O~ U L i0 w C ° U w U a>i ~ ° $ ° c ~ '3 ° '3 \ ~ ° ~ U ° > ~' U U o C 7 .~ U 'O C w ~' ~ ~ i0 N ~ .~ N ~ O U 7~ ~ ~ O .~ 'iU' ., 3 ° p v~ni c~ `~ N 3 ~ Y ~ > N N _ U U G c N ~ N p . N `~ 'fl o ~ ~ o c 2 " c y~ ° ct ° y y c7O ~ y ~ td ° 3 .L. o '" O C O ~ 'O 0 o V a ~ ~ y c O O '... A. U s = n ~ ~ 4 o~ c ~ j ono- bq O N °. ~ > ~ W O :can p 0 c o O E D U ~ C U ~ ~- cC4 y y A C ~ .~ ,y w « '~ `n .. ~ Q 'C a N U ,'L,,, '~= ~ U C ti ~ s 3 ~ . ~ ~ `tl ~ = ~ ~ ~ C ... ° ~ a o -o ~ c o ~ O ~ C b ~ U L 0. c .~ y a i ~ t U o ° 3 ~ O ~ ~ ~ -0 3 y ri t y ~ ~ o Q'~ ~ y v u n W O C ~ N N> L ~ V ~ N V O ~ tC M y o ~ T O -^ ~ `~ ~ ~ id in ~ O O O ~ ~ bCA U O C d ' ~° ~ L' V .C U ~ Q. C Cd N ~ C r1 ~ p ~n c~ c`~ C. ~ N ~ ~ ~ M V N y .~ ~ U C 00 '^ H .~ C 0 y~ ~~ °~ ~ ~ ii .O .O a c ce 'r' 3 ~ ' ~ _c o ° N ° ^ ~ ~ ~ ~ O ~ ~ L i ~ N N U U C C O ~ C ° ~ 7 U Q O ~ ' °~ 7 ~ ~ C 7 O rj a . . i ° ° _ , ~ ~ . ° d O O ..; c v .. v c i ~ 3 -- > a°i [ - :~ v n . 3 = O ° ~ ' ° o U ~ ~ 2 Wo y V _ "' L V ~~ ai d ~ _~ L1. ~ ~ ~ q~ C N Q ~ F va c°' ~ U U n 0 M N N .~ ° U ° o ° p ~ U c ~ ~ tl v N O ~ Q 4 o m O O ~ '~ ~; O O ° b ~ ~ v o d y r ~ Y 4 U 0 y ~ y ~ O, Q +~. ~ Q ti U . S > .y. v O v h E \ 's U ~ ~ U d e ~ ~ , ~ > U O `'CS ~ ~ x ~ O a ~'~ti~ ' „ ~ n o r ~ O ~ CJ o e C ~ o ~ ~.. y r ", a + y c y . ~ , ~ ~ ~ O Z ~ , V ~ ~ ~ v Q pC o o c ~ ~ °i cs u ,r e UvUV ~ ~ ,r ~ = y ~~ V r = ~'o S ~ > ~ d ~ Oi d U d ? ' e~~ ° . e r c r o . ~ ~ 5 ~ ' ~ ~ `~ V Q o ~ G °~ 04 Q H p .i tl ~ $ ~~ ~ i ~ ~ N '~1 O N M fi a O= ~i s S • ~ - Q ~ o o ~ E y 0 ~[ b 'Z ~ ~ N N ^'~ ~ ~ C ~ -C Q 0 ~U Q ~. <~ Agenda Memo Eagan Economic Development Authority Meeting January 9, 2007 C. NORTHEAST EAGAN REDEVELOPMENT DISTRICT -RECEIVE PRESENTATION OF CONCEPT PLAN FOR DART/ATLAS PROPERTY ACTION TO BE CONSIDERED: To receive a presentation of a concept plan for the potential redevelopment of the Atlas of Minnesota property in the Northeast Eagan Redevelopment District and provide staff and the property owner direction in regard to the questions outlined in the Issues section below. FACTS: Concept Plan Review The City generally does not consider concept plan reviews for ordinary development applications, but it has provided the opportunity for prospective developers in redevelopment districts to present concept plans in order to deternune whether the proposed development conforms sufficiently with the City's vision and redevelopment goals for the area to merit additional consideration through the preparation of a predevelopment agreement and formal applications for development and public financing assistance. If, on the other hand, the EDA and Council determine that the concept does not conform sufficiently to its vision to merit further review, it would be important to communicate that, so the developer can refocus efforts in a direction that would better conform to the City's expectations. • This concept review is not intended to presuppose the outcome of future application considerations or agreement negotiations. Redevelopment District Background • The City has taken steps to bring about the redevelopment of the Northeast Eagan Redevelopment Area (TIF District #2-4), including public improvements, environmental reviews, comprehensive plan and zoning modifications and the initiation of redevelopment activity in a portion of the district consistent with the City's plans for the area. The District lies on either side of Hwy 55 between Lexington Avenue and Hwy 149. ~~ To date, Interstate Partners has successfully redeveloped a portion of the District as a part of the Grand Oak Business Pazk and the City is working with McGough Development on the assembly and ultimate redevelopment of the azea azound Blue Gentian Road as a Class A office project. The remaining portion of the District lies along the south side of Hwy 55 and is the property subject to this concept review. • The District was certified on August 8, 2002 for a period of 25 years. However, under the statutes relating to such districts, the expenditures which are to be reimbursed from the proceeds of the District must be made within five years of its cerrification, in this case that will be August 8, 2007. Further, under the recently enacted eminent domain law, redevelopment districts created prior to 2006 can operate under the previous eminent domain standazds for the same five yeaz period. Public acquisitions that occur after that period will be subject to the new eminent domain requirements. Over a number of years, Atlas of Minnesota, the property ownership/development entity of DART Transit, has acquired a number of properties that are within the boundaries of the Redevelopment District. Atlas currently owns over 70% of the azea proposed to be redeveloped. • Since the creation of the TIF District, a number of third party developers have approached Atlas and other property owners in the area with an interest in assembling the properties and presenting a redevelopment plan for the area. To date, none of those concepts have come forward to the City as a formal proposal. Concept Plan Overview • The City is in receipt of a concept plan prepared by Atlas that proposes the development of a retail center, encompassing all but one of the remaining parcels in the district. Atlas owns all but two of the properties proposed to be included in the concept plan. The concept shows the following: • A retail strip center and a number of free standing pads anchored by a national discount retailer. The prospective anchor tenant has asked not to be named at this time. • The concept site plan proposes to demolish portions of the McKee/Cheney property and the former Pepsi properties and reuse them as locations for small and medium sized retail businesses. • Incorporation of the McKee/Cheney and Budget Host Motel properties (not currently owned by Atlas) into the development plan. • A potential future phase of retail development on the former McLean property, also owned by Atlas. • Revised circulation for the site, ultimately focused on the Hwy 149 and Blue Water Road intersections, where traffic signals are or will be located. I~} The property is currently Guided for Industrial development and Zoned Light Industrial (I-1). Retail uses are not permitted in these Comprehensive Guide and Zoning Districts. The azea is surrounded on all sides by industrial and business pazk development, with the qualification that the Grand Oak development has introduced a small area of retail development across the street at the intersection of Hwys 55 and 149. If the project moves forward, consideration of public financing assistance will require abut-for finding that a gap exists between the sources and uses of funds for the project. The analysis that will be provided to the EDA and City Council to assist in making such a finding will consider the ordinary costs of development (acquisition of third parry properties, development costs, environmental reviews, site preparation, etc.), the extraordinary costs of the proposed development (relocation, demolition, etc.), the TIF revenue stream that the new development may support and the equity that the owner/developer will invest in the project. To verify the gap and but-for findings, it will be necessary that the financial information associated with the project be transparent and that evidence be provided that transactions within the proposed project occur at arms length. Necessary information will include but not be limited to the original costs of property acquisition, development related costs to date and the sale prices of properties proposed to be sold as part of the project. • Preliminary TIF analysis indicates that the project will not generate sufficient TIF to fill the appazent gap if it is assumed that all parcels, including the developer's parcels, aze valued at current commercial squaze footage rates. If the project is to proceed and cash flow, the pro forma assumptions will need to include an owner's equity component. ISSUES: • While the City is precluded from taking formal action regarding such issues as rezoning, reguiding, subdivision or public financing assistance in advance of the formal applications and review processes for those actions, it would be in order for the Council to provide direction in the following areas: • Is the City Council/EDA open to consideration of a retail redevelopment of the property described? • If the CounciUEDA concludes that a retail concept is not appropriate for further consideration, two options could be considered. Staff could work with the developer to identify a redevelopment plan that would conform to the current Industrial Comprehensive Guide and Zoning designations or the Council could consider redesignating the area to a Business Pazk Guide and Zoning classification to encourage uses more consistent with those on the north side of Hwy 55 and staff would work with the developer on a plan to implement that direction. l~ • What specific factors would the City Council/EDA find necessary for further consideration of such a project? • Specific Anchor Tenants or Other Tenants - Is a retail project desirable with a specific anchor tenant only or would the City be open to a range of big box, retail anchors? • Retail Redevelopment on All or Only Some of the Property - Staff is concerned that a retail redevelopment on only part of the property may result in a use that is out of place with surrounding uses. Would the City support the redevelopment if only some portion of the proposed concept plan were implemented as retail or would it be necessary for the entire concept plan to be implemented? • Conformance with Commercial Development Finish Standards -Overall development costs and the proposed reuse of some of the existing structures may result in pressure to consider finishes that do not meet the City Code's development finish standards. Because of the quality of the redevelopment that has already occurred within the area and the developer's representation that the project would complement that development, would the City consider the proposal if those standards would not be met? • Are there other components of the land use or financial considerations that the EDA and City Council would expect to be addressed if the project were to proceed to the predevelopment agreement and application stage? • At this point, the proposed project is in concept only and other issues will be identified and addressed through the development review process, if it moves forward. ATTACHMENTS: • Redevelopment District map on page ~ 7 • Property owner map on page • Atlas of Minnesota letter and summary of policy requests on pages J__L_ through • Redevelopment Concept Site Plan on page ~~ (separate color copies in Council packets) • Concept renderings of proposed buildings on pages O~ (separate color copies in Council packets) ~~ V .` r _W D ~+ N C a ~ C o, ~ N v ~ C ~ ~ LL ~_ ~' ~ 0 A d t O d rn a W ~` C ~p N > > m ~ a -' c m lL "O rl ~ U ~ ~ m' ~ ~° a ~, ~ J M 8 7 O 0 N '~ Q a~ n m I ~~~ - ._ __ _ _ -__ _- - _~ -_ '_ _ ,.~ ___ `-~ HwY'1~4 _ ', ._ ~~~. ~. -- , , „_ ,, ~,,, ~ ,, - ,_ ~: ,~ ,~ t u ,' r ,. ,, _ ~~ ~- _, ,~ - - -- -- ,r ,_ I' - -- ~ / ~~~ '~ ~r:` ~ ~~t~ ~< __ /' d ~: ,_. \\ e ~ ~ ~~ i ~ ~ ~~ u i i A -i ^ ~ ~c~ ~ o / e '' N"{ ~ , ,i - _ ~~ ~ m c~ ~~ ,: /M _ \~.~ ~ ~ ~ ~~ ~~ ; - ,f ~ /,- ~, ~ _ __ _ _ -~ ,__ (l' '~'~ fl~i ~7 a~ m 0 0 0 0 0 N O O f{~ !C a 3 ~ m ~ ~~ N a°o LL a N a ~ - ~ O Q n~ o ~ tU a~ m o ~ Y N t0 Q ~ ANA, W A~ W O L a as E a 0 as as as oc ~~ JOHN G. HOESCHLER, P.A. ATTORNEY 800 Lone Oak Road Eagan, MN 55121 ~ghoeschler(cr~,comcast. net December 29, 2006 Mr. Jon Hohenstein Director of Economic Development City of Eagan 3830 Pilot Knob Road Eagan, MN 55122 Dear Mr. Hohenstein: Phone: 651-683-1868 Fax: 651-681-6868 Cell: 651-324-1694 I write to you as the attorney for Atlas of Minnesota Inc., and Atlas Investments, Inc. ("Atlas"), the owners of much of the land that lies southwest of Highway 55 on either side of the Blue Waters Drive intersection. The parcels we own and the owners of adjacent parcels are shown on the attached drawing. Much of this property falls within TIF District No. 2-4. As you know, there have been several development proposals and explorations regarding all or parts of this property over the last few years. Atlas believes the most promising have centered on a new store by a national discount retailer headquartered in Minneapolis (who does not want its name used until a firm deal is done) that would be located on our property just south of the Blue Waters Drive intersection. Because of the costs of such a development, however, the other developers have left the scene aizd we find ourselves to be the only party likely to be able to put a viable program together, mainly because we have owned our property for many years. We are engaged in detailed negotiations with the national retailer and, if the City is willing to help us, we would like to pursue redevelopment of this entire area as a high quality, complimentary retail development. I wish to outline what we believe will be involved in a development of this kind and the nature of the assistance we believe will be needed from the City Council for this project to be implemented successfully. Present Situation Except for the southerly ten (10) acres of the project area (our "McLean" site), all of the property is within TIF District No. 2-4 and the buildings are significantly blighted. The property is zoned I-1 and its Comprehensive Guide designation is Industrial. It has been I~ ,.. Mr. Jon Hohenstein December 29, 2006 Page 2 used for truck repair, storage and warehousing. The Cheney/McKee warehouse has been flooded and all of the buildings have significant functional problems. The ProStop property is also the site of a major historical petrochemical spill that the MPCA is monitoring. BP Amoco is the Responsible Party with respect to this spill It will be necessary to coordinate remediation of that property with BP Amoco in order to redevelop the property. The property across Highway 55 has been substantially improved with the construction of the Grand Oak and Spectrum developments and the owners of those properties would like to see the property southwest of Highway 55 similarly improved. The improvement of the property on our side of the highway will enhance this area as a major entry corridor from the airport to Eagan. We understand the City Council has expressed a strong desire to see such an improvement take place. The mystery retailer has expressed a desire to locate one of its latest stores in Eagan but has been unable to find a suitable site until now. We are attempting to work out the final details of a purchase agreement with them. Both they and we understand that it is not possible for the City to approve our plans at this stage, but we want to introduce the concept of this project to you and receive initial feedback on the City's openness to the concept before more time and effort is invested. We understand that in order for the project and any possible funding assistance to be approved, we will need to make the appropriate applications and have them considered through the ordinary processes. If the concept is not acceptable to the Council in any case, however, we would like to know that now so we can pursue alternatives consistent with the current zoning in the area. We also believe that there will need to be TIF financing available to assist the project. We feel that there is serious need for the TIF assistance because of both infrastructure conditions and costs and because of high land acquisition costs for the properties that Atlas does not currently own. We may also need to ask the City to consider using its condemnation authority to assemble the property Atlas does not own, if circumstances require it. Plans Our plans are still preliminary and schematic but have the following features: 1. A major discount store as an anchor and other complimentary retail development on a major portion of the property, extending from the Pro Stop property on the southeast to the former Pepsi property on the northwest. This redevelopment is likely to occur in two or more phases due to the size of the redevelopment area. ad Mr. Jon Hohenstein December 29, 2006 Page 3 2. Acquisition of the Cheney/McKee and motel properties to permit their incorporation into the overall redevelopment. 3. A possible future phase of complimentary retail development on the McLean and Philippi properties to the southeast of the anchor store, outside of TIF district 2-4. 4. If the negotiations with the preferred or another national retailer were to fail or be unacceptable to you for any reason, our backup plan would be new and expanded office/showroom/warehouse distribution facilities of a style that would compliment the Grand Oal< and Spectrum developments across the highway. We are also submitting site plans and elevation drawings to illustrate the layout, texture and style of our present plans. Much will depend, of course, on the final tenant mix. You will note that we are proposing adaptive reuse of the existing Cheney/McKee and Pepsi buildings due to cost constraints. Requested Feedback In order to carry this complex project forward, we request that the City Council indicate whether it is willing to consider applications for retail redevelopment of the area described. Thus we would propose to take the following steps: 1. Present an overview of the project to the City Council sitting as the Economic Development Authority at its January 9, 2007 meeting. 2. If the EDA and Council are willing to consider such applications, Atlas and city staff will negotiate and enter into a predevelopment agreement outlining the responsibilities of the parties and the process by which the parties will proceed with the necessary applications. 3. Atlas would request that the agreement address in particular the following items: a. Application for Comprehensive Guide Plan change from Industrial and rezoning of the property from I-1 to allow retail uses. As a part of these applications, we understand that it may be necessary also to complete an environmental assessment worksheet and we would request that the cost of that general planning document be covered by the City. b. Analysis of the need for public financing assistance and application for "pay-as-you-go" TIF assistance for site acquisition and infrastructure costs of the project as may be determined to be available, appropriate and allowed under the legislation. We understand that it will be necessary for any assistance to the project to meet the "but-for" test required by statute. c. The City's consideration of the use of condemnation powers to assist in site assembly, if necessary, as long as the Developer reimburses the City for all costs. a~ Mr. Jon Hohenstein December 29, 2006 Page 2 We request that the City Council consider our presentation at its meeting on January 9, 2007. There is limited time left in TIF District 2-4 and we need to inalce sure that the Council is comfortable with all of this before any of us proceed further. Since I will be out of the country on that date, our presentation will be made by Dan Oren with possible assistance from a mystery guest. I hope that all of this mystery will help with attendance. Thank you for your assistance. Yours truly, John G. Hoeschler,PA ~'`~-~ in G. Hoeschler CC: Dan Oren P.S. I also enclose a summary of Mr. Oren's presentation notes for your information. JGH:nmk aa, Summary of Policy Requests by Atlas We request that the Eagan City Council give positive consideration to the following: 1 Zoning/Use/Comp Plan Changes Upon Final Development Decision: A. Retail Mixed Use anchored by a national big box discount retailer (170,000-200,000 SF) attended by other retail or office/showroom commercial uses such as sporting goods, apparel, hardware, furniture, home improvement/remodeling, health club, recreation/entertainment, etc. B. In the alternative, office/warehouse/distribution in a style and finish that complements and supplements the uses recently built across STH 55. (This approach would only be used if definitive agreements cannot be reached with tenants and City regarding the retail plan.) C. Phased development with Prostop and Cheney/McKee parcels as Phase I and McLean, Philippi, Pepsi parcels as Phase Il. Motel will be acquired as part of Phase I but not completed until Phase II. D. PUD or Cluster Zoning approaches to be used. 2 TIF assistance to the fullest extent allowable is requested. A. Write-down of land acquisition costs is the big area of need followed by assistance with infrastructure costs. B. Condemnation power to assist assembly of land is requested, if needed. We are discussing acquisition issues with Mr. Cheney, CSM and the motel owners but the time is short for a summer start before the existing TIF district expires and condemnation powers may be needed. C. Motel parcel must be acquired as part of Phase I but may not be able to be redeveloped until Phase II as additional land from the Pepsi parcel will likely be needed. D. TIF is insufficient to allow completely new construction and therefore the existing Cheney/McKee and Pepsi buildings will be adapted and reused to the extent possible to keep costs down. These requests are not intended to supersede any public hearing requirements but are intended to give the City Council prior notice of the type of requests that may be expected. The development team wishes to alert the Council to these issues and to receive preliminary assurance that it is not a waste of time to proceed in this manner. We wish to avoid a "slow no" as to any of these important issues and therefore solicit early Council input. a3 ~~?~~. ~~ ~ ,~ ~ 9J' °° s p~ o ~ ~~ ,~ \ @, ~~ ~ ~ ~ ~~ ~\~ : see ~ R, '~ -,o ~'~ ~ ' e9 ~ X ~ ~ ~ ~ ~~ ~~~ o~ ti ~ ~ ~ ,_ ,. , a1 ~e C~, _ ~ f ~~ c ~~~ ~~~~ r. r p ti .. ~/ ~ i , *~ ~~ O \. Sd -.. __ . ~' _ ~~ /'~ ~~ ', _, s.. -- ,._ ~~ ¢~~Aa ~~ `. ,: ". ny~ I r~i Ii ~~-:' ~ 1 `' ~y ~. /., H ~"{ [ A ^:r s A+ ~ - l s. ~1 : }i5A ~ Qy+p ' )~'!o ' k'x . ' >.u ~ . ~~ ~' '~~ . f ; r,4, i1X; .1 ~ '. `~~jr Y. '' J'*"~`i~~ ~ , Y , ~ ' ~ r 5 ~ F ~ ,}} , Z r ~- ~~J ~, - f _r.~ r~ ' ~3' .C s. Y. 3 ~ n~ r ,~'`~` s kit: 4 ':" ~ - .~. ~. t + ~ `x ..~v"W V.t T }rr ~(t.-. f ,)V i / .. {r .M.'a '~'.. d .~~~' hYt L'„.w' ~-, ~~ W~ . r~ 1 +,:. ~r ESE ., :Ir ~(~3. ram °' ~. F, `:` Y .t ~1- ~~f f ; t., .~!. '.ri 1 ~ ~; i' z z t ` ~7c~ .~4'~~ 'F: ~. ~y :(, ..~~J: -.: . ; r ~ d ~, ~~rc ~ s t~~ ~'. .sue` _ ~ ~~ ~; {.~~..~ O Z O O W ~ N Q II ~w~ J J ~ W 1''~^^ VI } Z ~QQ ~NN ~ W 1.f. Q QU O J ~? u'm~ W ~ _~ ~~ t~Z~- QO ~ 3 j 3 ~s Agenda Memo Eagan Economic Development Authority Meeting January 9, 2007 D. APPROVAL OF REQUEST FOR PROPOSALS FOR CEDAR GROVE REDEVELOPMENT DISTRICT MASTER DEVELOPER AND AUTHORIZATION FOR DISTRIBUTION DIRECTION TO BE CONSIDERED: To receive the updated Request for Proposals for the Cedar Grove Redevelopment District Master Developer and provide direction to staff regarding its finalization and distribution. FACTS: • With the termination of the Cedaz Grove Redevelopment Development Agreement between the City and Schafer Richardson, staff requests direction with respect to the steps to be taken to select a new development partner for the Core Area of the Cedar Grove Redevelopment District. The City's redevelopment consultant and staff have completed a draft of the proposed RFP for consideration by the EDA at this time. The RFP calls on interested developers to present information regazding their qualifications and experience in working with host cities to plan and implement similar projects and requires proposers to provide general information regarding the approach and timing of the proposed redevelopment activity. • The RFP does not require developers to prepare detailed designs of specific aspects of the redevelopment project at this time, but asks instead for concept plans or bubble diagrams that would illustrate the developer's approach to the area and segments of the market. The focus would be on selecting a developer with a proven track record of working closely with cities to reflect the community's vision in a project that can be implemented over a reasonable time frame. Prepazation of a more specific concept plan would be among the first tasks for the selected developer. • While staff requests feedback on the entire document, EDA feedback is requested specifically on the following items that are changes from the 2004 RFP: • City Role in Site Assembly -Since the last RFP was issued, the Council determined that the City should take the lead role in property acquisition and site assembly. 'The RFP confirms that expectation for prospective developers. At this time, the City owns over 60% of the properties in the core area and is moving forward with additional acquisitions. acs • Implementation of Vision -The RFP continues to reference the historic planning and visioning efforts that were undertaken for the Cedaz Grove azea, including the Cedaz/13 Study and Village Plaza concept. This includes the goals of creating a gateway development that reflects mixed residential and commercial use at urban densities, cohesive design elements, pedestrian focus, transit orientation, shazed green space and structured pazking in a way that will be market supportable. The RFP indicates, however, that prospective developers aze being asked to interpret the goals and propose a development program rather than simply attempting to implement one of the eazlier planning concepts. The intent is to offer a level of flexibility to encourage prospective developers to suggest implementation strategies that reflect the vision and goals in a form that can be implemented in the current and foreseeable mazket. • Additional RFP Elements -The proposed RFP adds several items that have been suggested over the past several years. Specifically, it asks proposers to provide for: • A strategy to implement high speed broadband through a fiber to the premises (FTTP) approach. • Clear definition of parks and public space as part of the concept plan, including four-season features and water features. The draft also requests, but does not require the developer to consider: • Use of green building/sustainable development practices, which is a growing trend in new development. • Provision for performing or visual arts space within the development. Since the last RFP, Sue Schmitt, one of the business owners in the Cedaz Grove area, prepazed and submitted a petition requesting consideration of such a facility. Since the presentation of the petition, plans for performing azts facilities have been announced for both Heazt of the City and the Mall of America. Facilities of this kind would likely require additional subsidy, beyond what will be necessary for private redevelopment of the azea. Staff is requesting direction on whether to include this item in the Cedar Grove RFP. The concept of a cultural and performing arts center was raised in the Pazks 20/20 Vision to be considered in Eagan generally, but not specifically at Cedaz Grove. An alternative to including would be to refer the concept to the Pazks Deparhnent for further consideration in the Comprehensive Guide Plan Update. • If the EDA and Council is prepared to approve the 1tFP as presented or modified, an action to that effect will be placed on the EDA agenda for January 16, 2007. If approved, the RFP would be issued and processed as outlined in the schedule noted in the 1tFP. a7 ATTACHMENTS: • Draft Request for Proposals on pages ~'-t--through ~~ • Arts facility petition on pages ~ through ~~ Introduction Eagan, Minnesota is a vital, attractive community of 67,000 people located in the southeastern portion of the Twin Cities Metropolitan area. It is the 8th largest city in Minnesota and located just 15 minutes from downtown St. Paul, and 25 minutes from downtown Minneapolis. Eagan was named one of "America's Best Places to Live" by Money Magazine and is the highest job growth community in the Twin City Metropolitan Area. For more information about Eagan, to visit our website at www.cityofeagan.com. One of the most exciting development opportunities in Eagan is the Cedar Grove Redevelopment Area. The City of Eagan and its Economic Development Authority (EDA) are actively redeveloping Cedar Grove in order to once again make the area a strong, vibrant gateway to the community. The City will do this by creating a viable mixed-use azea that utilizes its highway visibility and accessibility, while maintaining compatible land use relationships with surrounding azeas. This is the goal of The Cedar Grove Redevelopment Area, a project undertaken to reawaken the spirit and vitality of this part of Eagan. The vision for The Cedaz Grove Redevelopment Area is to be mixed-use, transit-oriented, pedestrian friendly development. The Cedaz Grove Redevelopment Area is located east of Highway 77 (Cedaz Avenue) and includes property on both the north and south sides of Highway 13. Highway 77 is a principal arterial mining from Eagan to Bloomington, Richfield, and Minneapolis. The site is less than four miles from the Mall of America, Minneapolis-St. Paul International Airport and Interstate 494. Redevelopment District 13 0 9L t~ SILVER BELL RD Core Area ~~Q ~~ ~6 ~P G O K 2 ~ S K 13 ~ 0 z 0 ~ 025 0.5 Mbs DIFFLEY RD Cedar Grove Redevelopment Area Eagan Cedar Grove Redevelopment RFP Page 1 -l we encourage you Within this Request for Proposals, the City of Eagan and its EDA is seeking one or more private developer partners to redevelopthe 65 acre-Cedar Grove "Core Area" located between Hwy 13 and Cedar Grove Parkway. The strengths of the site include the following: • Excellent access to Cedaz Avenue and Highway 13 • Close proximity to the 494 strip, the Mall of America and the International Airport. • Improved traffic infrastructure that was completed with initial phases of the redevelopment. • Property acquisition in the core azea is over 60% complete. • Long term Eagan businesses that are remaining in or relocating close to the redevelopment area. • Strong residential base immediately south of the Site. • Significant upgrades and development of adjacent properties. Project accomplishments/progress to date The City has been planning and preparing for redevelopment for several years and significant public and private accomplishments have akeady occurred in and azound the area: • Public improvements totaling an estimated $12 million have been completed in the area, greatly improving traffic flow and streetscape and providing a sense of place for the core area. • The City is committed to property acquisition in the core azea. City property acquisitions represent over 60% of the land planned for acquisition. • As part the site assembly, the City has acquired the Cedarvale Mall, the lazgest individual property in the core area. The City has successfully negotiated the lease termination arrangements for all the Mall tenants, anticipating final vacation of the Mall in June of 2007. • Phase I and Phase II environmental reviews have been completed for the redevelopment area and specific core azea parcels. • A proposed transit station concept design was approved by the Minnesota Valley Transit Authority and Eagan City Council for the phased development of a Bus Rapid Transit Station on Highway 77 at the west end of the redevelopment. • Updated mazket study, traffic budgets, and housing demand studies have been completed at various times for the area. • Keystone Communities has completed a 4-story 129-unit senior living community at Silver Bell Road and Cedaz Grove Parkway -- at the gateway into the redevelopment district. This successful development sets a design and intensity standazd for the core redevelopment area. • The existing McDonald's restaurant located at the gateway intersection of Silver Bell Road and Cedar Grove Parkway recently completed a total teaz down and rebuild in order to more closely integrate its design into the future core development. • The Silver Bell Retail Center located on Silver Bell Road at Cedar Grove Parkway also recently completed facade improvements to more closely match the Cedar Grove design standazds. • Lennaz Homes completed the first and second phases of the 200+ unit Nicols Ridge townhome development south of Cedar Grove Parkway. • The View Pointe Apartments and High Pointe Village, located just south of the redevelopment district have also completed significant upgrades to the facades and units of this 300+ unit complex in response to the Cedar Grove redevelopment. Eagan Cedar Grove Redevelopment RFP Page Z • The River Ridge Apartments, located on the north side of the redevelopment district have also completed the construction of a complex in anticipation of the Cedaz Grove redevelopment. While the Cedaz Grove Redevelopment Area has its strengths, it also has had some challenges. Its primary challenge has been the "tired look" of many of the existing properties and the need to reposition investment in the azea to take advantage of new market opportunities. The Plan for the Cedaz Grove Redevelopment Area calls for reoriented, newly designed, and attractive structures, which will maintain individual identities, and complement the azchitectural theme, while expanding upon some of the viable, exiting Cedaz Grove core businesses. To assist you with this proposal, the EDA has scheduled aPre-Proposal Conference for: February 20, 2007 Eagan City Hall 3830 Pilot Knob Road 651-675-5000 Eagan Cedar Grove Redevelopment RFP ~' Page 3 The Goals of the redevelopment are to: • Revitalize Cedar Grove Area as agateway/landmark of the community. • Encourage a mixture of market-supportable land uses compatible with one another and with the surrounding area. • Incorporate new urban development expectations by incorporating a pedestrian focus, transit opportunities, mixed residential and commercial uses, uniform and cohesive design elements, structured parking and public green/open space. • Protect long-term vitality of residential areas adjacent to commercial areas and consider the needs of existing businesses in redevelopment or relocation efforts. • Improve traffic access and circulation to and through the area. The City is seeking a creative, qualified developer to oversee the development of the tazgeted area, with a mixture of retail, housing types, and/or restaurant and hospitality uses as identified on the Core Area plan. +.• The intent of the redevelopment is to bring about an integrated mixture of medium and higher density residential opportunities and increase the intensity of commercial activity in the Cedar Grove Area for use by the general public. Retail uses in the redevelopment area are required. • The City intends to bring about a redevelopment project of exceptional architectural and urban character. To this end, it is expected that the developer will package projects in such a way that different architectural treatments may be employed for different aspects of the development to allow the total project to have the look, feel and texture of a downtown constructed over many years of intermittent development. This includes placing buildings up to public sidewalk to provide a traditional downtown character as opposed to a suburban chazacter. • The City expects the development to be both mazket supportable and sustainable in the long run. Therefore, the City expects compliance with the materials and design standards outlined in the Cedar Grove Design Standards and Zoning Code. In consideration of sustainability, the City will be open to building design that incorporates green building practices, forms and technologies. • The City has preliminarily identified Jensen's Supper Club and the Cedarvale Bowl as the only two businesses that are expected to remain in their current building locations. It is expected that the developer and the City will work with those businesses to integrate them into new buildings or to make improvements and design modifications to their existing buildings that complement the new development. • Replacement of public parking will be essential in developing a commercially viable area. The developer will be asked to follow the Cedaz Grove Design Framework as they locate parking for the various elements of the project. Underground and structured pazking is encouraged where it can provide opportunities for greater development intensity. In all cases, primary parking should be located behind buildings, internal to developments. • The development is expected to integrate parks, public green space, gathering areas, sidewalks and connections to the area's trail systems to successfully create an urban environment that is Eagan Cedar Grove Redevelopment RFP Page 4 walkable and attractive to residents, employees and visitors. Pedestrian amenities and park facilities are expected to meet area needs in all four seasons. • The roadways in the azea have substantial traffic capacity for the redevelopment. The key limiting factor is the Hwy 13-Silver Bell Road intersection. As a consequence, the City and developer will work closely to determine a mixture of uses that will function effectively within the improved traffic infrastructure and transit opportunities. • Affordable housing is a necessary component of the redevelopment. The City is committed to providing affordable housing opportunities in the area by requiring that 20 percent of the units qualify asaffordable - with a combination of owner occupied and rental affordability. As part of this commitment, the City is working with Dakota County CDA to construct between 30 and 40 townhome units for workforce housing. • For businesses and residents in the area, the City has a strong desire to provide high speed broadband service to all homes and business properties. The City will work with the developer and appropriate provider(s) to insure fiber to the home (FTTH) and fiber to the premises (FTTP) for business properties. • Within the commercial and/or mixed use area(s) of the redevelopment area, the City expects one or more four season focal points that may include a water feature, winter ice, gathering space(s), plaza(s), etc., especially features that will reinforce activities such as outdoor dining and be attractive to users of retail and food and beverage opportunities throughout the day, the week and the year. Other elements the City desires include: • Sufficient "critical mass" for housing developments is desired, so residents feel like they aze part of a neighborhood rather than occupants of separate, isolated developments. • New roadways most likely will need to be built to create smaller blocks. These should interconnect with existing azea roadways to create a network of pedestrian, transit and automobile circulation. • Storm water management at the source is required. Space for storm water ponding is limited; therefore developers are encouraged to suggest techniques such as rainwater gazdens, rooftop gazdens and pervious pavement to manage storm water in small spaces. • The City believes that Cedaz Grove offers the opportunity to provide unique amenities to area and the community. These amenities may include, but are not limited to, spaces for performing arts and visual arts, trailhead features for the Minnesota River Valley and an expanded recreational relationship with the Minnesota River area (Other ideas). Eagan Cedar Grove Redevelopment RFP Page S 3~ General Land Use Expectations The Cedar Grove Redevelopment project is the culmination of discussions and planning activities that date back over a period of years. These efforts helped lay the initial groundwork for the planning expectations for the "core area", which it the subject of this RFP. Initial planning.efforts outlined in the Cedaz Ave/Hwy 13 study led to a revised plan that divided the core azea into separate sub-districts with desired land uses for each azea. Although the City would like the developer to recognize these original planning efforts, the City is willing to consider modifications to land uses mixes and locations, while still maintaining the goals for the redevelopment area. The core area and generalized plan is shown below. g-tver Bett Rd ii ~~ '~ ~~~,~ I ~ vrauer.aJ A~ '~ ~ - / ~ OfficelRetail j ~ ~\ ~`~~ / 13 ~ \ ~ vN ~1 / ~ .`~ Ares. / Restaurant%R reational ~ ~ ' ~ ~ Mixed-Use~R il/Multi-Family % .~' " '''~. Residential ~ -' / ~' i ~ ,y' ~ ~ Ora ~ ~, , ~~ %' ,~ ~ sr ~ ~~ ~ ~ ~ , , \~ ~ ~~ ~. ~ '~ - G ; Cwtt~Area ~ y r ~, ~ a ~~ _ OfficelRetail <~' ~Mized Use/Multi-Family Housi ng f ~> ~ Central Urban Greenway~ ~ Y ~ < ~ ~ ~~ ?'~ ~tp/4 t d,. ~ ~ ,,. ~, ~ ~~ , ~~to~e Cedar Grove Core Area West A ~ ~' ~; ~ ~ ' G~ ~ Core Area Parcel HotellOfticeb' s a n / ~ ' r' ' 0 City Acquired Property Tran it St tio ~ ~ Multi-Fam IIy~Residential r ~ Redevebpment District ~` ~ ~ 0 200 400 a00 ~ ~ ~ Fest i K/ ' l O O _ _ __..._ _. V _ __ , Additional details about the sub-azeas development progress and original vision can be found in the Appendix of the RFP. The City expects the developer to provide a creative, urban design that encourages and incorporates the use of high quality, durable building materials. Architectural detailing is highly encouraged and landscaping and streetscape design should be used to enhance pedestrian circulation and create a sense of unity and identity. The Cedaz Grove District Zoning District Uses and Standards are available on the City of Eagan's website (www.cityofeagan.com). These guidelines are important in creating the community's design vision. Developers are asked to comply with the specific guidelines so that the proposed development remains consistent with the azchitectural integrity of Eagan and the stated goals for redevelopment. Eagan Cedar Grove Redevelopment RFP Page 6 3~ Zoning The Cedar Grove Redevelopment Area is currently zoned CGD. The zoning supports the community's vision of celebrating the broader neighborhood as a vibrant, walkable town center that contains a mix of uses, attractions and living options. It also incorporates new urban development expectations of pedestrian focus, transit orientation, uniform and cohesive design elements, structured pazking and public green spaces. Information on zoning is available at the City of Eagan's website at http:// 156.142.111.3 8/upload/images/current~lanning/cedazgrovedistrict.pdf. A copy of the Land Use Map is available at http://156.142.111.38/upload/images/comprehensive/say LU inside.pdf. The Comprehensive Guide Plan is available at http://156.142.111.38/live/page.asp?menu=2085. Desired Developer Commitments/Conhibutions The City prefers a master developer for the Cedar Grove Area, but it is willing to consider partnerships for development of the area. In particulaz, the City recognizes the specialized nature of the full-service hotel mazket segment and is willing to entertain separate proposals that focus on that element, if they can be implemented in a manner complementary to the remainder of the redevelopment. • The developer will be responsible carrying out a strategy to implement the Concept Plan, including identifying the specific types of uses for each area, and for implementing the phasing of development for the azea. The strategy will include incorporating the current developments in the area and working with the businesses that will remain in the area. • The developer must demonstrate an understanding of new urban development by incorporating a pedestrian focus, transit opportunities, mixed residential and commercial uses, uniform and cohesive design elements, structured pazking and public green space. • The developer must demonstrate an understanding and commitment to the City of Eagan's concept for redevelopment. • The developer must demonstrate the experience necessary to organize and deliver a high quality project of the type and scale proposed. • The developer is expected to provide private capital to fund 100% of the fair mazket value of the project. • The developer must show a willingness to work with the Dakota County CDA to complete a portion of the affordable housing units. Eagan Cedar Grove Redevelopment RFP Page 7 City of Eagan Commitments • The City may consider requests for gap financing as appropriate to assure the desired level of quality for development. • The City will continue to act as the lead land assembly .While the City prefers to acquire properties through direct negotiation, it has pursued eminent domain in situations in which it has been necessary. The recent changes in the eminent domain laws do not apply to any property acquisition because the tax increment financing district was certified on July 22, 2003. However, if eminent domain is necessary, the actions must be commenced prior to Juty, 2008. • The City is committed to work with Dakota County CDA to complete between 30 and 40 affordable townhome units. Desired Qualifications • Experience in development of mixed use projects including the type of housing, hotel, entertainment and hospitality, retail and/or office redevelopment proposed. • Proven organizational and project management capabilities. • Demonstrated experience in obtaining debt and equity to finance the proposed type of development. • Experience in public/private development work. • Commitment to collaborate with City staff, EDA, and elected officials. Submission Requirements Please submit fifteen (1 S) copies with the following information: 1. A development strategy including number, type, size, estimated market value, and use for each project component. A sample form is attached and available electronically at www.ehlers-inc.com/minnesota/projects/minnesota~rojects.htm. 2. A site plan that indicates how the developer would propose to situate general uses on the site(s). The site plan should be a simple "bubble diagram." This RFP does not anticipate and discourages architectural drawings with elevations specific to the site. However, pictures of similar work done for other communities are welcomed. 3. A general description of the public improvements, which may be required to support the new development. Potential improvements to consider include streetscapes, water and sewer, etc. The City understands that engineering has not been initiated and that a detailed engineering analysis would be undertaken when the project proceeds. However, the City would appreciate preliminary information about the type of improvements proposed. Eagan Cedar Grove Redevelopment RFP Page 8 3i~ 4. Proposed sale prices/rents of residential units and lease rates for the commercial space. 5. Generalized development proforma, detailing sources and uses of funds (including proposed cost of land). 6. A description of the project team including, but not limited to the lead developer, development planner, azchitect, engineering consultant, attorney, etc. All principals and partners must be disclosed and pertinent information provided. Any future changes in principal partner(s) will be considered by the City. 7. Summary of related development experience, financing capacity and references from city officials in at least two (2) communities where you have completed similaz developments. 8. Description of unique characteristics and design elements that would be incorporated into the project. Pictures of similaz projects completed in other Cities may be provided. Please do not submit original drawings specific to the proposed development. 9. Process for acquisition of private property and relocation of existing businesses. 10. Proposed timeline for development. A realistic and feasible timeline will be among the key criteria considered in the selection of a master developer. All RFP packages shall be submitted to the City of Eagan, no later than 4:00 p.m., March 15, 2007. Responses should be addressed to: Eagan Cedar Grove Redevelopment Attention: Jon Hohenstein Community Development Director 3830 Pilot Knob Road Eagan MN 55122-1810 651-675-5000 Eagan Cedar Grove Redevelopment RFP Page 9 3~ Selection This information will be reviewed and evaluated by the EDA and City and they will make the selection of developers for final proposals and interviews. In making a selection of a developer, the City will consider the following items: • Proven qualifications to carry out a project as outlined in this proposal • Demonstrated experience in wban and subwban mixed-use redevelopment • Demonstrated experience in implementing new wban design concepts in redevelopment projects •3 Demonstrated understanding of the City's vision and goals for the azea as reflected in the proposed approach to the project :• Anticipated public participation costs as compared to development value :• Demonstrated ability to work with existing businesses to integrate them into the redeveloped azea Preliminary Project Schedule Developer Information Session RFP Due EDA/City Developer Review City Staff Interviews Developers Council Identifies Developers for Interviews Council Interviews Developers Approval of Developer Preliminary Development Agreement Approval Start of Construction February 20, 2007 March 15, 2007 April 6, 2007 Apri120, 2007 May 1, 2007 May 15, 2007 July 1, 2007 September 1, 2007 TBD by Review process Please direct questions about the Eagan Cedar Grove Redevelopment and this RFP to: Jon Hohenstein Sid Inman Rebecca Kurtz City of Eagan Ehlers & Associates Ehlers & Associates 651-675-5000 651-697-8507 651-697-8516 Jon.Hohenstein@cityofeagan.com Sid @ehlers-inc.com rkurtz@ehlers-inc.com Thank you again for your interest in developing within our community. We look forward to receiving information regarding your proposal The City anticipates interviewing developers in mid April and completing the selection process in June, 2007. Eagan Cedar Grove Redevelopment RFP Page 10 ¢,~ N c~ N ~ ~ ~ . ,.., ~/1 ~ . ,.., pC .., as 0 0 a b o~ o~ C7 '~ U W ~~ r_ C ~ ,`~} ------ _ CJ~~-~ ~1 ,a __.J~ lil d ~ m~~ __.. _.~-___ / / _. I _~ / ~~ i ~' ~ ~ ~~- - -~~ a~~----- I ~--' - _ ~~ ~-, 1 ~I5 !e :,: ~ P~- \~ ~ ^~- ~- ,~; ~` ~~ P21 s~oaiN~ 40 ~~~\\\! y// ~\, ,~\, Y t~ . J ~ /! ~ d C G ,U $ LL N Q ~ O V a a U d a~i a~i ~ Q Q ~ 8 _ ~~~ ~ ~ L ~ ~ m v O O N U U ~ a~ sr~~~ ~.. ~ s d ` 1 ~ \ C ` \\ \ ,~ I 1 4, \ \ ~ // ~ ~\ ~ ~~ \ n ~ ~ ~ ~~ ~ ..~ S ~ ~ ` , ~ ~ ~ 1 1 ~~~ C~ ~ ~ ~ ~ V `~ ^ ~ ~\ ~ 4 ~ ,, `y ~~ B ~ r 7~ (~ . ~ ~~~ . . \,, ,~ ~ ~~ Nj~~_ ~ ~~ J: - ~ l ~f. ~ ~ ~~ o .1~ { w w 0 0 '~ o~ ~ ~ ~ ? U U W ~i _ ._ N W _ z ~ r-- ~ i ~ `~ m ~L ` 3 ~. <' m . o m ~' W _. wu--,__.~ Q ~ y O W U W Z Q U K W Q J J Q i ~I `;, ',~ L~~ W N N U __._.Q- ~ O a y ~~. H /~ o z Q'-a 'o z ~ w ac0 '~' ~~~/'~~ ~ a ~ z a I cai W \, ~ ~ fp W 2 t7 z W / Z O f N LL U ~ o z ~ W O Z ~ a a ~ W 0 Q ~ O ~ ~, j ' C C L _ ~ U LL ~ ~ ~ .L-~ ~ in ~ a Q o °' a Z ~ a N Q ~ ~ ~ Q d ~ 3 ~ O Q a c ~ S O O ~ ~ ~ N L U U a w~ g a ~ oa~ V a ~~ °, ~o v ~ \ ~~ z Z O i. T ~ ~ .. A V~ U ~ `b .~ ~ o ~°"~ ~ V .o~ ~ e e i~~i~ ~ ~~ y(\ i a o Z~ ,° ~ ~.~Y ~._. ' \ J w f- ~ a . ~ ,, r 3 `~: ~ .p E ~ ' ~~ ~~ ~ ~ ~;°~J ~ ``' g 3 4` z ~` \ ~ \ `'~ --~ O W 3 a ~ `7~~ ~~~U = ,'~ ~ ~ ~ N O 0 Q z 0 N C g w g J 3 Z W fq 2 0 N U LL o°za rc d tq r w 1 rc ~ Q W ~ F -J Y Z U Z W _ W ~ zo a ?~ ~ ~Q ~ ~ ~ J W O Q N W W 7 4 ?~ K Q y a 3 } 0 rc z = ~ W U Q W C Q 7 U H S O V P21 $io~!N Geda< Pve '~ O d 0~ U w '~ 1 Appendix Site Background The lazger 250-acre Cedar Grove Redevelopment area is located east of Cedar Avenue (Hwy 77) and includes property both on the north and south sides of Hwy 13. The area is surrounded by Industrial property to the northeast with adjacent higher density residential development to the north, east and south of the area. A large and older single family development is located immediately to the south. The Cedar Grove Redevelopment project is the culmination of discussions and planning activities that date back over a period of years. The "core azea", which is the subject of this RFP, is a sub-area within the larger project. Initial planning efforts outlined in the Cedar Ave/Hwy 13 study led to a concept plan that divided the core area into separate sub-districts with desired land uses for each area. The Cedar Ave/Hwy 13 Study is available for review on the City website. The city is providing a revised concept that gives more flexibility by showing the core area in general planning azeas, yet still providing intended land uses for each area. Although the City would like the developer to implement much of this concept and recognize these original planning efforts, the City is willing to consider modifications to land uses, mixes and locations, provided the overall proposal still reflects the goals for the redevelopment azea. The following descriptions provide more detail regarding the current status and goals for each general planning area within the proposed core redevelopment. The core area and generalized plan is shown below. - --- _ _ _. ire-~ ~ - +~-ap ArRa fNflcelRetai ~ ~~, ~ ~~ / N`~ 13 ~ ~ A l ~ / -/'~ ~ rea .. RestaunntlR reatlonal - ;~"" ~ ~ v Nixed-UseR ad/Multi-Family - - ~ i Residential ~ \ ~ / >, •~ e ~' 0~ ~ ~ ~~ i ~~ ~- ~ ~entretAria ~~ ~w , ,OfflcelRetail i ~} Mined UselMuMifamily Housing Central Urban Greenway~ , ~ `~" l Q~ ~tb~~ ~~ ae Cedar Grove Core Area V1~est ~ ,~ , ~' " ~ ~ ~ ,~~ Gem ~ Core Area Parcel HoteODifiiel. ~ T St ~tl n ~ ~ si [~ Ciry Acquired Property ~ o ran t ~ Mu1H-FamNy~R ; es j ritial ~ ~ Redevelopment District /~ j% 0 200 400 800 ~ ~ ~ .., .., / 9 '% Feat C: M C ,._ _. ~ _. _. .. _.. .. _. _. _ _.._-.. Eagan Cedar Grove Redevelopment RFP 4~ Gateway Area Description: The 4 acre area is located at the southwest quadrant of the Silver Bell Road and Cedar Grove Parkway intersection, considered the gateway into the core area redevelopment. Development Progress: • The intersection was completely redesigned in 2002 to better handle traffic flow to and from the redevelopment and surrounding areas. • Keystone Communities completed a 129-unit four-story senior housing development in the southeast quadrant, consistent with the design and intensity standazd for the core redevelopment azea. • McDonalds and Silver Bell Center have recently completed upgrades to existing facilities at the northeast quadrant to more closely integrate their design into the future core development. • The City of Eagan acquired the 1.5 acre pazcel at immediately adjacent to the intersection and has initiated eminent domain proceedings to acquire the remaining 2 acres. Plan Description: • The area is envisioned to make a gateway statement for the core redevelopment area by providing a structure tight to the street with verticals of at least two stories to complement the Keystone facility. • The plan suggests a mixed use of mazket sustainable retail, office, and/or housing in and azound the primary gateway structure or structures. East Area Description: The 7.5 acre azea is east of Rahn Road and north of Cedaz Grove pazkway. The azea contains two successful businesses that aze anticipated to remain: Jensen's Supper Club and the Cedarvale Bowl. Jensen's offers fine American dining in an up-scale but relaxed environment, while the 32-lane Cedarvale Bowling Center draws more bowlers than any other in the 5-state Midwest azea and provides outdoor volleyball and other activities in the summer months. This area may be expanded further to the west into the Central Area to accommodate a larger proportion of retail and mixed use development than had been considered in prior planning efforts. Development Progress: • Afire recently destroyed the Shell gas station on one of the two remaining parcels. Demolition of the structure is complete and the City is in negotiation to acquire the property. • The Minnesota Credit Union on the other remaining pazcel has expressed interest in being part of the first phases of redevelopment. Plan Description: • The plan suggests that this is the best place to build on the existing entertainment uses to create an entertainmentllesuire, restaurant center within a short walking distance from anywhere in the redevelopment azea. • The area may also provided mixed use multi-family housing and should offer a transition between the retail intensity of the gateway area and residential uses that aze expected to be located in the western portions of the core redevelopment. • The Supper Club and Bowling Center should be integrated into the design for the azea. • Adequate parking for a more intense development pattern should be provided, preferably through a structured pazking facility. Eagan Cedar Grove Redevelopment RFP ~3 Central Area Description: The roughly 32 acre azea is divided by Cedarvale Boulevazd and is bordered by Highway 13 and Cedaz Grove Pazkway. A large portion of the area is occupied by the existing Cedarvale Mall. A wide azea of open right-of--way currently divides the central area. This azea originally accommodated old Hwy 13 and its frontage roads. It is anticipated that the redevelopment project will incorporate all but the right of way necessary for the new road system into the private development. Development Progress: • The 12-acre Cedarvale Mall site was purchased by the City in the fall of 2006. Most of the tenants have been successfully relocated. Remaining tenant relocations aze expected in June of 2007. • The City has acquired an additional 6 acres of the Central area with only 6 acres remaining to be acquired. Plan Description: • The plan suggests that this is the best location for a vertical, mixed-use development consisting of office, food and beverage, service, and retail with multi-family housing. • The Central District is expected to act as the pedestrian-oriented link between all of the districts with a central urban greenway as the center of the core redevelopment. • The plan envisions people walking on tree-lined streets with shopping at the street, their homes above their offices with parking hidden behind or under the buildings. The center of the neighborhood is an active intersection of restaurants, shops, and public spaces where residents and visitors can enjoy their free time. West Area Description: The 18-acre west area is located at the Nicols Road and Cedaz Grove Pazkway intersection and is adjacent to the Cedaz Ave (Hwy 77) and Hwy 13 interchange. Development Progress: • The Minnesota Valley Transit Authority (MVTA), in conjunction with the City of Eagan and Dakota County, is committed to providing enhanced transit opportunities in the Highway 77 Corridor. MVTA has worked closely with the County to locate a Passenger Station and a Car Park and Ride facility at the southeast quadrant of Highway 77 and Highway 13. MVTA will approach this project in a three-phase effort: o Phase I will include the installation of a surface pazking lot and enhanced bus service to the Mall of America Transit Hub and other destinations. o Phase II will include a pazking structure and an integrated passenger waiting station, and associated service facilities. The facility will meet the stated goals of Dakota County to facilitate a Bus Rapid Transit System in the Cedar Avenue Corridor. o Phase III will include access improvements and a proposal to change the current highway access and configuration of Highway 13 and Highway 77 interchange. The proposed modifications include both automobile and transit vehicle access directly off Eagan Cedar Grove Redevelopment RFP /' `'t~ of northbound Highway 77 into the station as well as direct egress from the station back onto northbound Highway 77 for transit vehicles. • MVTA is working to secure funding for all three phases and is working with MnDOT and Dakota County to finalize the plans for configuration of the Highway 77 and Highway 13 interchange. Plan Description: • The plan suggests that this is the best location for a hotel and office complex, as well as mixed use residential and retail uses that can interact with the transit station. • The City would be open to consideration ofmulti-story structures that provide enhanced visibility for the project itself and the redevelopment area. In order to provide a visible landmark for traffic along Cedar Avenue, a vertical structure in the azea must be at least 85 feet tall. • The transit station provides an important urban anchor at the edge of the core azea. The City wants a substantial number of residents within the redevelopment azea to bewithin afive-minute walk of this transit option, which will connect them to all pazts of the Twin Cities. Eagan Cedar Grove Redevelopment RFP ~ "T~ We,the Residents of Eagan & surrounding communities would like the city of Eagan to consider one of the following in the .redevelopment of the Cedar Grove Area. A. Dinner Theater B. Fine Arts Building C. Theater Arts Building D. 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