02/10/2009 - City Council SpecialAGENDA
SPECIAL CITY COUNCIL MEETING
TUESDAY, FEBRUARY 10, 2009
5:30 P.M.
EAGAN ROOM-EAGAN MUNICIPAL CENTER
I. ROLL CALL AND ADOPTION OF THE AGENDA
J II. REVIEW LIQUOR LICENSE SEPARATION REQUIREMENTS
Q III. DISCUSS OPTIONS FOR CIVIC ARENA WEST FLOOR
~.3~IV. REVIEW 2009-2010 CITY GOALS
V. OTHER BUSINESS
VI. VISITORS TO BE HEARD
VII. ADJOURNMENT
Agenda Information Memo
February 10, 2009, Special Eagan City Council Meeting
II. REVIEW LIQUOR LICENSE SEPARATION REQUIREMENTS
ACTION TO BE CONSIDERED:
To review background information, public policy considerations, and provide direction to
staff for any desired next steps.
FACTS:
Separation from protected uses:
• At the November 6, 2008 regular meeting, after approving an ordinance
amendment removing the setback requirements from protected uses in
connection with the licensing of off-sale malt liquor (beer) establishments, the
City Council directed staff to research all other liquor licensing separation
requirements for further discussion at a future work session.
• The research has been completed and outlined in the attached memo. The
conclusions are generally as follows:
o Current separation requirements are in place to provide separation
between particular land uses. They do not address limits on the number
of licenses or on the overall geographical location of licensed
establishments.
o There appears to be no written documentation as to why the
requirements are in place at this time.
o As the community ages and properties are developed and redeveloped or
reused, the expectations for compatible uses seem to change or evolve.
o Surveyed communities have spacing requirements similar to Eagan,
although actual application of the requirements is hard to ascertain.
Off-sale liquor license regulation:
• Since staff has not been directed by the City Council to undertake any additional
research or to provide any additional information, the topic of limiting the number
of off-sale liquor licenses was not researched or considered beyond what is
included in the memo to City Administrator Hedges and to the preparation of the
table showing the timing of issuance of licenses to current holders.
The table referenced in the previous bullet shows that most of the license holders
expressing the concerns at this time were issued licenses after the 2004/2005
moratorium and study at which time the City Council determined that no
limitations on the number of off-sale liquor licenses would be put in place.
Please note that this table is not a complete historical review of all of the license
holders.
• Due to the concern expressed by current off-sale liquor license holders of being
excluded from notice etc., they have been notified of the special meeting. The
background material they have presented to the City is included in the packet
attachments.
ATTACHMENTS:
• Enclosed on pages ~ through ~ is a copy of a memo to City
Administrator Hedges providing background material on separation requirements
between special uses (liquor licenses) and protected uses.
• Enclosed on pages ~ through ~ is a copy of the table and related
minutes showing the timing of issuance of off-sale liquor licenses to current license
holders.
• Enclosed on pages ~ through is a copy of the material the City has
received regarding the concerns of curren off-sale liquor license holders and/or
residents.
• Enclosed on pages ~ through are copies of the newspaper articles
related to this matter that were printed in the papers on Friday, February 6.
a
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To: City Administrator Hedges
From: Director of Administrative Services VanOverbeke
Director of Community Development Hohenstein
Date: February 5, 2009
Subject: Liquor License Separation Requirements
Project Purpose and Parameters
At the November 6, 2008 regular City Council meeting official action was taken to
approve an ordinance amendment removing the setback requirements from special uses
in connection with the licensing of Off-Sale Malt Liquor (Beer) establishments. The
Council concluded that the amendment was in order because Off-Sale Beer sales are
substantially similar and incidental to the sale of groceries and other products at the
licensed facilities. At the same meeting the City Council directed staff to research all
other liquor licensing separation requirements for further discussion at a future work
session to determine whether the separations for the other liquor license categories
remain appropriate or should be modified.
By way of framing the review and discussion, the following should be noted:
1. The terms "special uses" and "protected uses" have occasionally been used
interchangeably; however, in this case, "special use" is intended to mean the use
that is to be separated from "protected uses". In this case, the special uses are
the various types of liquor licenses and the protected uses are churches,
schools, and day care centers.
2. Special use separations are currently applied to liquor licenses and 24 hour
business operations. (Adult use separations are greater than those for the
special uses and they are spelled out in the Adult Use ordinance.)
3. Consistent interpretation of written spacing requirements has been problematic
over the years in the following circumstances, consequently there have been
periodic City Code changes to address the unique circumstances:
a. Straight zoning versus planned developments. The Code permits
modifications of the separation requirements when the special use and
protected use are in the same zoning district within a planned
development.
b. Sequence of the establishment of the uses. I.e, does it make a difference
if the protected use independently chooses to locate in a specific site after
the liquor establishment is already there and the spacing requirement is
subsequently not met? Past practice has been to require the separation
when a special use is proposed in proximity to a protected use, but not to
apply the requirement when a protected use is proposed within the
separation distance from a licensed liquor establishment.
c. Is the measurement taken from the actual building, the space within a
building (strip center) or the property line? The current separation in the
zoning code ordinance runs from the property line of the protected use to
the wall of the licensed facility if all activity is inside the building and to the
parking lot boundary if any activity is outside the building. i.e. patio.
However, the separation in the licensing chapter refers to the day care
structure, school structure or church structure.
Application of standard separations and points of measurement between
•most special uses and protected uses. In an effort to simplify and
standardize the special use separations, a recent amendment of the
zoning code reduced the standard to 200' with the two points of
measurement noted above (with the exception of the adult use
separations which are greater and defined in that portion of the zoning
code). In doing so, some differential separations for different uses were
eliminated. The City may wish to reconsider this approach in light of the
discussion of Item c. above.
d. The situation of property/building reuse of either the liquor license
property/building or of the protected use property/building. The City has
had relatively few of these to date that have involved the separation
requirements and has dealt with those that have come up on a case by
case basis, but with the natural turnover of businesses in certain locations
over time, the issue can be expected to occur to some extent in the
future.
Special Use Separations versus Licensed Establishment Separations
These setback requirements, as land use conditions and/or liquor license conditions, do
not address spacing between liquor license holders of any type and have not been
intended to limit the number of liquor license holders or to attempt to geographically
distribute them throughout the community.
While the issue the Council directed staff to address relates to separations between
licensed liquor establishments and protected uses, we understand that current off-sale
liquor license holders plan to appear before the City Council on Tuesday evening to
revisit the issue of limitations on the number and/or location of off-sale liquor licenses
that can be issued in the City of Eagan. They indicate the concern is driven by a
potential application for another off-sale liquor license related to the new Cub Food store
and located in the retail strip next to the new store. Current spacing requirements would
not impact that application.
The issue of limitations and/or geographic separation requirements for off-sale liquor
licenses was thoroughly studied in 2004 and 2005. The following minutes record the
outcome of that study and deliberation:
City Council Special Meeting Minutes April 26, 2005
IV. OFF-SALE LIQUOR LICENSES
City Administrator Hedges introduced the item noting that at the March 8 City
Council meeting, staff was directed to develop a list of criteria that other cities use as a
basis in reviewing and approving off-sale licenses. Director of Administrative Services
VanOverbeke provided the history regarding off-sale liquor licenses in Eagan. He noted
that notification was sent to the 14 existing license holders as well as others who have
expressed a recent interest in obtaining an off-sale license, inviting them to attend the
April 26 Council meeting.
The City Council discussed the current moratorium on off-sale liquor licenses and
whether they should restrict the number of licenses. The Council further discussed the
various options available for liquor license restrictions.
The City Council took testimony from current liquor license holders regarding
their input on regulations on the number of liquor licenses available.
There was City Council consensus to keep the ordinance in its current state and
to lift the current moratorium on off-sale liquor licenses.
Councilmember Carlson moved, Councilmember Tilley seconded a motion to
direct that an agenda item be placed on the May 3 City Council meeting for the City
Attorney to prepare an ordinance with regard to off-sale liquor license to keep the current
off-sale liquor license process in place and to remove the current moratorium on off-sale
liquor licenses. Aye: 4, Nay: 0
City Council Regular Meeting Minutes May 3, 2005
OLD BUSINESS
ORDINANCE TERMINATING THE MORATORIUM RESTRICTING THE ISSUANCE
OF OFF-SALE LIQUOR LICENSES ESTABLISHED BY ORDINANCE NO. 383,
INTERIM USE: ALCOHOLIC BEVERAGES LICENSING STUDY
City Administrator Hedges introduced this item regarding the termination of the
moratorium restricting the issuance of off-sale liquor licenses. An Interim Use Ordinance
was adopted by the City Council on October 19, 2004 to allow Council the opportunity to
determine what, if any, additional restrictions/criteria should be imposed in the area of
off-sale liquor licensing and regulation. Review of information provided by staff following
a survey of other metropolitan cities' and input from current off-sale liquor license
holders was held at previous Council workshops.
Councilmember Carlson moved, Councilmember Fields seconded a motion to adopt an
ordinance terminating the moratorium restricting the issuance of off-sale liquor licenses
established by Ordinance No. 383, Interim Use: Alcoholic Beverages Licensing Study.
Aye: 5 Nay: 0
Since staff has not been directed by the City Council to undertake any additional
research or to provide any additional information, the topic of limiting the number of off -
sale liquor licenses is not considered further in this memo or in preparation for the work
session; however, since the matter might come up, background material is included in
the City Council packet for the meeting. Due to the concern expressed by current off-
sale liquor license holders of being excluded from notice etc., they have been provided
written notice of this special meeting.
Historical Purpose of Spacing Requirements between Special Uses and Protected
Uses
Staff has not been able to locate any written documentation regarding the historical
purpose for including separation requirements from protected uses for issuance of liquor
licenses. Absent that type documentation, it seems the requirements are probably there
as a result of one of more of the following:
1. Exposure of children and/or church attendees to certain types of businesses.
(This is somewhat similar to the current site restrictions regarding "adult uses".)
2. Easier (location) access by youth to regulated products.
3. Amount of traffic, timing of traffic flow, potential impaired drivers.
4. Overall noise concerns.
5. General concern for compatibility of uses.
Public Policy Considerations
1. If the speculation on the historical purposes of separations from protected uses is
correct, do the purposes still hold? If they hold for some types of liquor
establishments, are they diminished for off-sale locations that for all practical
purposes function similar to any other retail business, although they are more
regulated.
2. How does out-door activity at liquor establishments, such as patios, impact
separation from protected uses? The current separation for uses with outdoor
activities measures from the edge of the parking lot. This was originally
developed with 24 hour business operations in mind and was aimed at defining
an edge of outdoor activity -namely parking or driving. In the case of patios for
businesses serving food and liquor, the issue of noise from outside activity would
relate more specifically to that area than to the parking lot in general. Patio use is
further complicated now due to the indoor smoking ban and the use of patios as
smoking sites, regardless of whether food or beverage service is occurring at the
time.
3. How should the City reconcile the different points of measurement for special and
protected uses in the licensing chapter and the zoning chapter? While it makes
sense from a zoning standpoint to separate 24 hour activities from the property
boundary of a protected use, so that the owner/user of the protected use property
may enjoy the quiet use of their yards as well as their buildings, the current
language in the Code related to liquor licenses sets the point of measurement at
the protected use's structure. If the purposes of the separations remain, which is
the more appropriate separation for liquor licenses -the protected use property
line or the protected use structure?
4. If separations between licensed liquor establishments and protected uses are'
retained in the Code, does the presence of a major roadway between the uses
reduce the need for the distance separation?
5. Whether separation requirements are in place or not, the City Code provides that
"the Council may, in its sole discretion and for any reasonable cause, refuse to
grant any application (for a liquor license)." While this authority is available and
can be applied for any reasonable cause, the choice to rely on it in lieu of or in
addition to standards in the code would require a more detailed description of the
findings and reasons for denial than would be necessary if a use failed to meet a
standard in the code.
Memo Attachments
• Appendix A includes a matrix that is intended to help visually represent the
various types of liquor licenses being issued and the current spacing
requirements. The document also includes definitions of the various types of
licenses and a definition of protected uses.
• Appendix B is a matrix listing spacing requirements in other communities.
• Appendix C lists the Eagan liquor licenses that have been issued for 2009 by
category.
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Director f administrative Services
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Q 'a I- 'a (A 'a m -a m a m -a ~ -a U ~ U 'a W -a U -a Y 'a Y -a ~ 'a ~ ~ cn 'a c c
icy
~~ .
E4GAN GtTY COUNCIL MINUTES; NOVEMBER 21, 1995
PAGE 9
2. The developer shall plat the .property.
3. The developer shall prepare a private parking easement and ingress/egress .document to be
reviewed and approved by the City Attorney's Office prior to CouncU action on the final subdivision.
The developer shall record the prfirate parking and ingress/egress easement with the plat.
4. The developer shall be responsible for submitting detaged plans and specifications with the final
grading plans for the construction of the retaining walls.
5. ff this project develops prior to the Park Center Flftit Addition - TCF Bank development, the
developer will be responsible for providing sanitary sewer and water main stubs to Lot 1, Block 1,
park Center Fifth Addition.
6. The developer shall be responsible for providing sanftary sewer slid water main stubs to the
property west a# Lot 1, Block 1, Park Center Sbcth Addition.
7. The service drive to be extended through the site shall be constructed wfth concrete curb and
gutter on both sides its entire length.
8. The existing service drNe to Taco Bell shall be upgraded to City standards to include concrete curb
and gutter to the southern edge of Lot 1, Block 1, Park Center Sixth Addfton.
9. The developer shall provide evidence of ingress/egress easements to provide access to .Lot 1,
Block 1, Park Center Sixth Addition.
Aye: 4 Nay: 1 (Masan opposed.)
~' - APPROVE NEW UOUOR STORE, UNITED PENN LAKE INC.,
'~ ~; .' DBA SILVER BEU. UGtUOR, 1983 SILVER BELL ROAD
<. ~ ~,,,
Dave Perrier, of Perrier Wines & Liquors, expressed some concern about eliminating the geographical
and population restrictions for liquor stores. He feels there should be some fair way to contrd these licenses.
Counclimember Awada indicated she was involved in eliminating these restrictions. She doesn't feel k Ls the
Job of government to deckle what kind of business can go in a certain location, with the exception of zoning
restrictions. ft Is restricting flee trade and she feels the market should drive the industry. Councilmember
Hunter concurred. The flee market controls the Industry. Some discussion followed. Hunter moved, Awada
seconded a motion to approve an off-sale liquor license for United Penn Lake Inc. to operate Silver Bell Liquor
at 1983 Silver Beli Road. Aye: 5 Nay: 0
~~~~I.~f.~ ~ t1 ~ ~.~'~i+YA~~?~~n`m~k ~-04i~~5~~~pW~~~~. : ~ 2'.'Kviti.:5
Councilmember Hunter noted he was contacted by the Dakota County Economic Development
Partnership about serving on the board. He Indicated an Interest in finding out when the meetings are held,
and soon after that, he receNed a call congratulating him on his appointment. He receNed a survey from them
and would like some Council direction as to what he should do wfth iG Councilmember Awada indicated she
heard they are considering changing their fee structure for cities. She suggested Counciimember Hunter hold
on to the survey to see what happens with the fee structure in the future. Councilmember Wachter stated he
doesn't feel tt is appropriate to be lobbying other CouncA members on this. Discussion fdlowed.
,. ~,fhw~,~:~.~:.~...Y.f
Catherine Pk;krell, x745 Brlstd Boulevard, thanked Director of Public Works Colbert and Administrator
Hedges, who have been very attentlve to their concerns about safety in the Weston HAIs area. She Indicated
~~
Eagan City Council Meeting Minutes
October 5, 2004
Page 5
PLANNED DEVELOPMENT AMENDMENT
LOT 1, BLOCK 1, SODERHOLM ADDITION
HOLIDAY STATIONSTORES
City Administrator Hedges introduced this item regarding a request fox a Planned Development Amendment to allow
an expansion of the car wash and construction of an enclosure for salt storage and an amendment to the car wash
signage. City Planner Ridley gave a staffrepo~•t.
Councilmember Carlson moved, Councihnember Tilley seconded a motion to approve a Planned Development
Amendment to allow an expansion of the car wash and construction of an enclosure for salt storage on Lot 1, Block
1, Soderhohn Addition, subject to the following conditions: Aye: 5 Nay; 0
1, An Amendment to the Planned Development Agreement shall be executed and recorded with the
Dakota County Recorder's office.
2. The new addition shall be constructed of materials that match the existing building.
3. No outside storage, sales, or display.is permitted.
4. Entry and exit doors of the car wash shall be closed during wash/dry cycles.
Councihnember Carlson moved, Councihnember Maguire seconded a motion to approve a Planned Development
amendment to amend the car wash signage for the Holiday store at 1065 Diffley Road, legally described as Lot 1,
Block 1, Soderholm Addition in the SW '/a of Section 23, subject to the following conditions: Aye: 5 Nay: 0
1. An Amendment to the Planned Development Agreement shall be executed and recorded with the
Dakota County Recorder's office.
2. Car wash signage shall comply with the City Sign Code.
PLANNED DEVELOPMENT AMENDMENT AT THOMAS. LAKE CENTER - PHUONG NGUYEN
City Administrator Hedges introduced this item regarding a Planned Development Amendment to allow an off-sale
liquor store in Thomas Lake Center, located at 1565 Cliff Road, along with the Liquor License and a Tobacco
License. City Planner Ridley gave a staff report.
The applicant discussed the condition recommended by the Planning Commission which states there would be no
window signage other than open/closed and hours of operation signs. They requested that 50% window coverage be
allowed.
After discussion, Councihnembers agreed that 25% window coverage would be acceptable.
The owner of two local liquor stores spoke regarding the unlimited number of off-sale liquor licenses issued by the
City. They requested the Council consider limiting the number of licenses issued in the future. Councihnembers
agreed that the geographic aspects of off-sale liquor stores and the possible limit on the number of licenses issued
should be addressed. Staff was directed to review the ordinance and possibly survey existing off-sale liquor stores
for feedback.
Councihnember Fields moved, Mayor Geagan seconded a motion to approve a Planned Development Amendment to
allow an off-sale liquor store in Thomas Lake Center, located at 1565 Cliff Road subject to the following conditions:
Aye; 5 Nay: 0
1. A Planned Development Amendment Agreement shall be executed and recorded.
2. All signage shall comply with the City of Eagan Sign Ordinance.
3, There shall be no more than 25 percent window coverage with signage.
Councihnember Fields moved, Councihnember Tilley seconded a motion to approve the OfF Sale Liquor License for
Phuong La Nguyen, dba T.L. Liquors, 1565 Cliff Road, Suite 18 and 19. Aye: 5 Nay: 0
Councihnember Fields moved, Councilmember Tilley seconded a motion to approve a License to Sell Tobacco
Products for Phuong La Nguyen, dba T.L. Liquors, 1565 Cliff Road, Suite 18 & 19. Aye: 5 Nay: 0
18
Kory Krause
Owner and General Manager
MGM Wine and Spirits
4182 Pilot Knob Road
Eagan, MN 55122
January 21, 2009
Mayor Mike Maguire
City of Eagan
3830 Pilot Knob Road
Eagan, MN 55122
Dear Mr. Mayor:
I'm writing you today because I recently received information regarding the possible/proposed addition
of another off-sale liquor license in the City of Eagan. I understand that the new Cub Foods store
located at Lexington and Diffley plans to open their own liquor store. I'd like the opportunity to explain
why this proposal would have an extremely negative effect on our local business community and to the
City of Eagan in general. I know you are a very busy person, but I hope you can take just a few minutes
to read and understand this important issue.
Adding yet another liquor store to our already saturated market, will negatively affect the existing off-
sale liquor businesses. Specifically Amber Liquor, which is located within a black of the new Cub.
Adding a large liquor store, which has the buying power of a large company, will undoubtedly put the
small "mom and pop" Amber Liquor store out of business. They would be unable to compete. The
result is a loss of jobs, an additional vacancy in the already tough commercial leasing market, as well as a
host of other losses to the immediate community. Also affected; would be the net loss to the various
services the business consumes, as well as the catastrophic impact an the ownership and his family.
I see this as having a negative impact on both Black. Diamond Liquors and MT Liquory also. Both stores
are located in close proximity. Even the new Kowalski's liquor store would likely realize a decrease in
sales. Putting the additional strain on all of these businesses will undoubtedly result in stores closing,
cutting jobs, and/or reducing benefits to their employees.
The potential impact on MGM Wine and Spirits of Eagan: First, a little background about our business.
MGM has been a neighborhood store here in Eagan, located in the same strip mall for nearly 30 years. I
purchased the business from MGM Corporate about 3 years ago. The store is now a franchise, and I am
the owner-operator of the business. We employ 3 full-time people, and the positions INCLUDE medical
benefits. The average salary of our full time staff is over $45,000 per year. We employ apart-time staff
of 7, in addition to the full time positions. Average part time pay is over $12 per hour. The part time
positions have access to medical benefits also, if desired.
i~
MGM Wine and Spirits is an upstanding, responsible, and important member of the Eagan business
community. We re-invest all of our proceeds back into the business, while continuously improving it.
Almost all of the money STAYS in Eagan. We recently remodeled the store's exterior, and we are
currently continuing the process on the inside. We donate heavily to worthy and important local causes,
including charities, local organizations, etc. We run a safe business, and with an extremely law number
of annual police calls. We have, never failed a sting, selling liquor or tobacco to a minor. We operate in a
very local/neighborhood-specific manner, not like that of a large corporation, which has no regard for
the community in which it operates. We tailor our business to best serve the immediate area, rather
than trying to continuously undercut the competition, participate in price wars, etc. This better serves
the immediate community, rather than putting it in second position, behind corporate strategy. Our
number one focus is customer service. All of the services we consume are local as well; we even bank
here in Eagan.
In this tough economic climate, we can't afford to lose any of our own market share, or realize a
decrease in sales. We are barely surviving right now as it is. Since 1 purchased the store three years ago,
3 new liquor stores have opened inclose proximity to our location. We can't handle a 4`t'. Any
additional decrease in sales will result in the immediate reduction of our staff andjor their benefits. We
are doing our very best to keep every employee working during this tough time, but we can only do as
much as we can afford. It is now more important than ever to protect the existing businesses. 1 think
you would agree, we can't afford to add to the already swelling number of unemployed Eagan citizens.
Please understand this is very serious! It is no exaggeration, if Cub opens one of their "cookie-cutter"
liquor stores at Lexington and Diffley, it will result in the eventual closing of Amber liquor, MT Liquory,
and most likely Black Diamond Liquors. Further, we believe it would lead to the slow and gradual death
of our business, MGM Wine and Spirits. This would result in vacancies at 4 different strip malls, the loss
of 4 liquor and/or tobacco licenses, and many good jobs. These are small businesses; this would have a
catastrophic impact on the ownership and their families. People will lose their life's savings, their
dreams, their future, retirements, and much more. We do understand the desire to improve and
expand business in the City of Eagan, but the ramifications must be considered. And in this case, the
benefits of a new Cub liquor store would be non-existent, compared with the consequences. The new
low-paying positions created at a new store would not come close to replacing the lost jobs, and overall
revenue to the city. As appealing as it may seem to add new businesses in Eagan, it should be done
responsibly, and the whole picture must be considered from every angle. Eagan already has more off-
sale liquor licenses per capita than many other Twin Cities suburbs. The community can only support so
much, and in this economic downturn, it is more important than ever to carefully consider the impact
something like this will have. Please consider what the addition of a new Wal-Mart store does to small
and medium sized towns. We all know how that turns out far many local businesses...
In conclusion, I want to let you know that those supporting my position include; the ownership at Amber
Liquors, MT Liquory, Black Diamond Liquor, MGM Corporate, the MLBA {Minnesota Licensed Beverage
Association), the employees and families of these businesses, and many concerned Eagan citizens.
Additionally,l'd like to present you with a petition signed by every current off-sale licensee in Eagan,
apposing the addition of a new license. This petition will include the signatures of other Eagan business
owners, concerned parties/citizens, the MLBA, MGM Corporate, and more. 1 would welcome the
opportunity to sit down with you, and discuss this important issue further. Any time it is convenient for
you, please don't hesitate to contact me. I'd like to provide you with further information supporting my
position. Thank you very much for your time, and t trust the City of Eagan will come to realize the
importance of this situation, and act accordingly.
Respectfully Yours,
~,
~-
Kory Krause
~9
,-
,~ ~--- ..~w_--
131ack Diamond Liquor
525 DifFley Road
Suite 2050
Eagan, MN 55123
January 28, 2009
Mr. Mike Maguire
Mayor
City of Eagan
3830 Pilot Knob Road
Eagan, MN 55122-1810
Dear Mayor Maguire;
I own Black Diamond Wine and Spirits. It has come to my attention that Cub Foods or an independent party is
intexested in opening a new liquor stare in its strip mall near the intersection of Diffley Road and Lexington
Avenue. Over saturating the area with liquor stores will have an adverse effect on the area and its existing
businesses.
I opened my business two years ago to provide goods and services to the east end of Eagan by offering a full
wine/liquor store. I run a quality establishment and I offer the community a vast selection of products. I also
reinvest & support many charities and organizations in the community. While I have support from the
neighborhood, I am unable to expand my business due to the number of liquor stores nearby. Presently, Eagan has
six liquor stores in just over a 4 mile radius all located on or near Diffley Road. Further, Trail Liquor is located less
than one half mile away on Highway 3 in Inver Grove Heights. Trail Liquor has the competitive advantage of
keeping its doors open until 10:00 p.m. while I must close by 8:00 p.m.
In addition to the abundance of liquor stores in the 5 mile radius, the proposed liquor store will be located directly
across the street from a school. As a parent this greatly concerns me. Granting another liquor store license in this
area will cause significant hardship by further diluting an already thin market, particularly on the east end of Eagan. I
feel if the city decides to grant a license several of the smaller stores including mine in the area could be faced with
significant hardship and could potentially force many of us to close our stores, loose our jobs, income &
investment. This would also pose a detrimental effect on not only us and our employees but the strip malls that
we are located in as well.
Please share this letter with other city council members for their consideration. Thank you for your time and
attention in this matter. Please keep me informed as the City of Eagan moves forward on this matter.
Sincerely,
~~ ~ ~~ ~;;
-.._._~___~_~,.~Brenda Szoka
i
f
From: blackdiamondliquor@comcast.net
To: bd1525@yahoo.com
Subject: Please read this important message!
Date: Tue, 3 Feb 2009 17:15:28 -0600
Dear Valued Customers:
I apologize for this lengthy message but I feel strongly that it is very important. After reading this please share the information with
others in our community.
Black Diamond Wines & Spirits has recently learned that the city of Eagan is strongly considering granting yet another liquor store
licenses on Diffley Rd. There are currently six liquor stores operating already along a Diffley in just over a 4 mile span. Cub Foods
would like to open a liquor store in this area as well. They would like to operate one in the strip mall that is adjacent their new store and
across from North View Elementary School.
Currently there is a regulation in effect that would not allow a liquor store the rights to be that close to a school. The city is considering
changing the city code. To help with the cities decision Cub is on tonight's city council agenda. The city is voting "to approve"
1
donations by CUB FOODS of $1000 each to the police and fire departments. We know exactly what that is for.... Kowalskis did the
exact same thing, a generous "donation" to the city when they wanted to have a wine shop. Shortly thereafter they submitted their
license application, and it was approved. In addition, if this city code is change it would allow unlimited licenses to be granted and it
would also lift any restrictions as to where these licensee could operate their business.
We feel strongly that the city is not looking out for our best interests for a couple of important reasons. Being a parent that has children
that attend schools in this area I am greatly concerned. I know that many kids frequent this area after school. I am concerned for there
well being and safety with all the traffic and activity in that area. Several parents I have already spoken with strongly feel that we do not
want our. kids to be exposed to or have access to these types of goods. In addition, we want to keep them safe from other who may be
willing to purchase for someone under age, or may in the area under the influence and may not drive carefully through the area.
In addition, We are very concerned that there would be no restrictions as to where future on or off sale establishments could operate
within the city. The total ramification of the changing of this city code is significant. Just the opening of another liquor store on Diffley
Rd would have significant effects on my business but would also affect the other small liquor stores and several of the strip malls in the
area. Please read the letters below that have already been submitted to the city for more details about this matter.
We are currently trying to gain support for keeping our children safe and protecting our businesses and livelihoods. Therefore, we are
asking for your support. Please let the Eagan city council know that we are not in favor of their proposal to change the law or grant
another liquor license.
Please consider signing one of the following petition and then pass it along and encouraging others to do so as well. We need the
support of everyone!. Those registered voters in Eagan are extremely important. Please print out the petition and post in your
lunch/break rooms/office or take it with you to one of your children's activities. We need to work fast. We need at least 300 signatures.
Petitions need to be signed and delivered to the city by 4pm on Friday. We will. begin discussing this issue in front of City Council on
Tues. Feb. 10th.
You may go online to view and sign either of the petitions at www.ipetitons.com/petiton/keepourkidssafe or
http~//www thepetitionsite.com/1/no-mare-liquor-stores-in-eagan or you may stop by several of the liquor stores along Diffley Rd. and
sign the petition on site. You may also print the petition out and place it in area that others may gain knowledge of this matter and
would be willing to sign. We just need to gather those petitions afterwards so please let us know if you have one you would like us to
pick up.
Thank you for your time and consideration in this matter. If you have any questions or concerns please feel to contact me at 651-294-
0990.
Sincerely,
Brenda Szoka
Owner
Below are copies of the letters that have been submitted to the Mayor & City Council members.
Kory Krause
Owner and General Manager
MGM Wine and Spirits
4182 Pilot Knob Road
Eagan, MN 55122
January 21, 2009
Mayor Mike Maguire
City of Eagan
3830 Pilot Knob Road
Eagan, MN 55122
Dear Mr. Mayor:
I'm writing you today because I recently received information regarding the possible/proposed addition of
another off-sale liquor license in the City of Eagan. I understand that the new Cub Foods store located at
Lexington and Diffley plans to open their own liquor store. I'd like the opportunity to explain why this
proposal would have an extremely negative effect on our local business community and to the City of
Eagan in general. I know you are a very busy person, but I hope you can take just a few minutes to read
and understand this important issue.
Adding yet another liquor store to our already saturated market, will negatively affect the existing off-sale
liquor businesses. Specifically Amber Liquor, which is located within a block of the new Cub. Adding a
large liquor store, which has the buying power of a large company, will undoubtedly put the small "mom
and pop" Amber Liquor store out of business. They would be unable to compete. The result is a loss of
jobs, an additional vacancy in the already tough commercial leasing market, as well as a host of other
z
a~-
losses to the immediate community. Also affected; would be the net loss to the various services the
business consumes, as well as the catastrophic impact on the ownership and his family.
I see this as having a negative impact on both Black Diamond Liquors and MT Liquory also. Both stores
are located in close proximity. Even the new Kowalski's liquor store would likely realize a decrease in
sales. Putting the additional strain on all of these businesses will undoubtedly result in stores closing,
cutting jobs, and/or reducing benefits to their employees.
The potential impact on MGM Wine and Spirits of Eagan: First, a little background about our business.
MGM has been a neighborhood store here in Eagan, located in the same strip mall for nearly 30 years. I
purchased the business from MGM Corporate about 3 years ago. The store is now a franchise, and I am
the owner-operator of the business. We employ 3 full-time people, and the positions INCLUDE medical
benefits. The average salary of our full time staff is over $45,000 per year. We employ apart-time staff
of 7, in addition to the full time positions. Average part time pay is over $12 per hour. The part time
positions have access to medical benefits also, if desired.
MGM Wine and Spirits is an upstanding, responsible, and important member of the Eagan business
community. We re-invest all of our proceeds back into the business, while continuously improving it.
Almost all of the money STAYS in Eagan. We recently remodeled the store's exterior, and we are
currently continuing the process on the inside. We donate heavily to worthy and important local causes,
including charities, local organizations, etc. We run a safe business, and with an extremely low number of
annual police calls. We have never failed a sting, selling liquor or tobacco to a minor. We operate in a
very local/neighborhood-specific manner, not like that of a large corporation, which has no regard for the
community in which it operates. We tailor our business to best serve the immediate area, rather than
trying to continuously undercut the competition, participate in price wars, etc. This better serves the
immediate community, rather than putting it in second position, behind corporate strategy. Our number
one focus is customer service. All of the services we consume are local as well; we even bank here in
Eagan.
In this tough economic climate, we can't afford to lose any of our own market share, or realize a decrease
in sales. We are barely surviving right now as it is. Since I purchased the store three years ago, 3 new
liquor stores have opened in close proximity to our location. We can't handle a 4th. Any additional
decrease in sales will result in the immediate reduction of our staff and/or their benefits. We are doing
our very best to keep every employee working during this tough time, but we can only do as much as we
can afford. It is now more important than ever to protect the existing businesses. I think you would
agree, we can't afford to add to the already swelling number of unemployed Eagan citizens.
Please understand this is very serious! It is no exaggeration, if Cub opens one of their "cookie-cutter"
liquor stores at Lexington and Diffley, it will result in the eventual closing of Amber Liquor, MT Liquory,
and most likely Black Diamond Liquors. Further, we believe it would lead to the slow and gradual death of
our business, MGM Wine and Spirits. This would result in vacancies at 4 different strip malls, the loss of 4
liquor and/or tobacco licenses, and many good jobs. These are small businesses; this would have a
catastrophic impact on the ownership and their families. People will lose their life's savings, their dreams,
their future, retirements, and much more. We do understand the desire to improve and expand business
in the City of Eagan, but the ramifications must be considered. And in this case, the benefits of a new Cub
liquor store would be non-existent, compared with the consequences. The new low-paying positions
created at a new store would not come close to replacing the lost jobs, and overall revenue to the city. As
appealing as it may seem to add new businesses in Eagan, it should be done responsibly, and the whole
picture must be considered from every angle. Eagan already has more off-sale liquor licenses per capita
than many other Twin Cities suburbs. The community can only support so much, and in this economic
downturn, it is more important than ever to carefully consider the impact something like this will have.
Please consider what the addition of a new Wal-Mart store does to small and medium sized towns. We all
know how that turns out for many local businesses...
In conclusion, I want to let you know that those supporting my position include; the ownership at Amber
Liquors, MT Liquory, Black Diamond Liquor, MGM Corporate, the MLBA (Minnesota Licensed Beverage
Association), the employees and families of these businesses, and many concerned Eagan citizens.
Additionally, I'd like to present you with a petition signed by every current off-sale licensee in Eagan,
opposing the addition of a new license. This petition will include the signatures of other Eagan business
owners, concerned parties/citizens, the MLBA, MGM Corporate, and more. I would welcome the
opportunity to sit down with you, and discuss this important issue further. Any time it is convenient for
you, please don't hesitate to contact me. I'd like to provide you with further information supporting my
position. Thank you very much for your time, and I trust the City of Eagan will come to realize the
importance of this situation, and act accordingly.
Respectfully Yours,
Kory Krause
January 29,2009
Dear Mr. Hedges;
I own Black Diamond Wine and Spirits. It has come to my attention that Cub Foods or an independent
party is interested in opening a new Liquor store in its strip mall near the intersection of Diffley Road and
Lexington Avenue. Over saturating the area with liquor stores will have an adverse effect on the area and
its existing businesses.
I opened my business two years ago to provide goods and services to the east end of Eagan by offering a
full wine/liquor store. I run a quality establishment and I offer the community a vast selection of
products. I also reinvest & support many charities and organizations in the community. While I have
support from the neighborhood, I am unable to expand my business due to the number of liquor stores
nearby. Presently, Eagan has six liquor stores in just over a 4 mile area all located on or near Diffley
Road. Further, Trail Liquor is located less than one half mile away on Highway 3 in Inver Grove Heights.
Trail Liquor has the competitive advantage of keeping. its doors open until 10:00 p.m. while I must close
by 8:00 p.m.
In addition to the abundance of liquor stores in the 5 mile stretch along Diffley Rd. the proposed liquor
store will be located directly across the street from a school. As a parent this greatly concerns me.
Granting another liquor store license in this area will cause significant hardship by further diluting an
already thin market, particularly on the east end of Eagan. I feel if the city decides to grant a license
several of the smaller stores including mine in the area could be faced with significant hardship and could
potentially force many of us to close our stores, loose our jobs, income & investment. This would also pose a
detrimental effect on not only us and our employees but the strip malls that we are located in as well.
Please share this letter with other city council members for their consideration. Thank you for your time
and attention in this matter. Please keep me informed as the City of Eagan moves forward on this matter.
Sincerely,
Brenda Szoka
Windows LiveT"' Hotmail®...more than just a-mail. See how it works.
February 3, 2009
Mayor Mike Maguire
City of Eagan
3830 Pilot Knob Road
Eagan, MN 55122
Dear Mayor:
We hear there is consideration of granting yet another liquor store license in Eagan and that the
proposed site is in the strip mall next to the new Cub store on Diffley.
Please do not grant this license. We live on Yorktown Drive, with 3 liquor stores already in a
one mile radius (Amber Liquor, Black Diamond and one on Hwy 3 that is in Inver Grove
Heights). If I drive west on Diffley, there are liquor stores about every half mile -the one in the
mall at Pilot Knob &Diffley; the Liquory at Johnny Cake &Diffley; the one in Kowalski's; and
the one in the mall on the north side of Diffley at Blackhawk. If you veer from Diffley a mile or
so north or south, there is a liquor store next to original Cub Foods; one near the old Cedarvale
site; one near Rainbow; and one in Byerly's.
These are the stores I can think of off the top of my head. How many do we need?
I understand Cub is making donations to the Eagan Police and Fire departments, which is
admirable. Do not let their generosity influence your decision, I am certain many of the existing
liquor stores would do the same, but cannot because they are barely staying in business because
of the extraordinary number of liquor stores in Eagan already. It wouldn't look good either. We
don't have a mayor and a city council whose votes can be bought, do we?
Please, no more liquor stores in Eagan... and particularly no more liquor stores along Diffley
Road. Or should I call it Liquor Lane?
Sincerely,
~~ ~~
Pam Carlson
4249 Yorktown Drive
Eagan, MN 55123
651-452-8365
d~~
600 South Highway 169, Suite 701 - St. Louis Park, MN 55426
Phone: (763) 923-7889 Fax: (763) 591-5015
February 4, 2009
Council Members
..•. - ~ -.- z,,
~.ity v~ ~~y,~~
3830 Pilot Knob Road
Eagan, MN 55122-1897
Re: Zoning Change to Liquor Restrictions and Regulations
Dear Council Members,
{ am the owner of the Lexington Center Shopping Center on Diffley and Lexington Ave.
So. It has come to my attention that the City Council is considering a change to the
liquor restrictions and regulations that would enable a new liquor store to open directly
across the street from the school, in the new Cub Center.
My tenant Amber Liquor has been a neighborhood liquor store for almost 20 years now
and I strongly object to changing the code just because a giant, like Cub Foods, wants to
sell liquor. You have to know that the impact on a small business owner, like my tenant,
would most likely put them out of business. This would be totally unfair given that they
have built up their business over the past 20 years relying on the rules that are in place.
am all for free enterprise but not when you change the rules to accommodate a bigger
player.
I respectfully request that you do not allow this change to take place.
Please read this letter at the Council meeting on Tuesday, February 10th
Very truly yours,
LEXINGTON CENTER
~,
Mark Ravich, Owner........
~, o
Gene VanOverbeke
From: Mira Pepper
Sent: Friday, February 06, 2009 12:33 PM
To: Gene VanOverbeke
Subject: FW: New Liquor store--Diffley and Lexington
I thought you might want this for the packet.
From: Theisen, Michelle [mailto:michelletheisen@arcgreatertwincities.org]
Sent: Friday, February 06, 2009 11:42 AM
To: City Council; CodeEnforcement; Tom Hedges
Cc: David Theisen
Subject: New Liquor store--Diffley and Lexington
Dear City Council, the City Administrator and the Mayor of Eagan,
My name is Michelle Theisen and I'm a relatively new citizen of the city of Eagan. My husband David and I moved to
Eagan from Eden Prairie in June 2007 because of the wonderful family feel that Eagan has to offer. To my horror, I read
an article in the Pioneer Press about the Council "considering" redefining city laws in order for a new liquor store to be
allowed admittance into the new shopping center located next to the Cub store on Diffley and Lexington. Not only is this
potential new business seeking to locate right across the street from a school, there is already a liquor store on Lexington
just off Diffley. School children should not have to look out their windows while they are taking a study break to see a
liquor store. Zoning laws like this were created for a reason: to keep exposure to these types of businesses away from
children. I am absolutely appalled that my tax dollars are being used to consider this request. As long as you are
considering this request, maybe you should allow an adult business to locate in that shopping center as well. The City
Council would never consider a request like that and they shouldn't consider this request either. Both types of business
are EQUALLY HARMFUL to kids.
I was also appalled to hear that after several "gifts" from the new Cub in Eagan, that the Council was "open" to discussing
changing city ordinances regarding liquor store locations. This doesn't pass as you politicians like to say.,..the smell test.
Please do not change city ordinances and zoning to fit the needs of Cub. Look after the needs of your citizens. Also, I
decided to do some investigating on my own and looked up liquor stores on Goole. I found that there are 6 stores
already located within a 4 mile radius of each other. Eagan does NOT NEED a 7 h one in this location. Please do not
change the law to suit this liquor store or Cub. Eagan deserves better, I deserve better, and the kids of North view
Elementary deserve better.
Sincerely,
Michelle Theisen
594 Eden Circle
Eagan, MN 55123
651-688-7871
1
a~
Cub Foods' plan
riles liquor store
owners in Eagan
• Proposalto open an off-sale
liquor store in a strip mall near ~ ' '
ari elementary school has set off .
protests and cla;rns of favoritism.
By jOY POWELL
jpowell@startribune.com
There's a battle brewing in Eagan
as Cub Foods seeks approval to sell
off-sale liquor across the street from
an elementary school, near the inter=
section of Diffley Road and Lexing-
tonAvenue.
That proposal has irked a group of
liquor store owners, who say the city,
with 171iquor stores, already has more
per capita than just about any other in
the state and doesn't need another
one, especially near a school.
But city officials say Cub meets all
the requirements for anoff--sale liquor
license, and it's not the city's place to
interfere with the free market.
"In addition to the catastrophic ef-
fect alarge new liquor store would
have on several existing Eagan busi-
nesses, it would be bad for our com-
munity as well," said Kory Krause,
owner of MGM Wine and Spirits,
which is about a mile away from
where Cub is planning to open its
store.
Krause, who is spearheading the
opposition to Cub's plans, said anoth-
er store in a saturated market could
force several~liqucir stores out ofbusi-
ness,leading to.jobslost and fmancial
hardship for-the owners.
Among those worried is Eduard
Fisher, owner of Amber Liquor, which
shares one end of the parking lot in the
License continues: Donation to city
fire and police draws protests. B5 -
Cub's plans for liquor store draws protests
- LICENSE FROM B1
strip mall where the Cub store
is located.
"They can put any price to
put me out of business," Fisher
said in his store Thursday.
Cub Foods has notif-ied an
Eagan city clerk of its plans for
the store, which would be lo-
cated in a new strip mall next
to Cub, but the company has
not yet filed an application
with the city.
- "Like many businesses, Cub
doesn't disclose any expansion
plans," said Lee Ann Jorgenson,
spokesman for Cub Foods.
Opponents have claimed
that the city is considering
changing the setback require-
ments so that Cub could open
the store. City officials say
that's false.
The current requirements
say a liquor store must be
at least 200 feet away from
the property line of a school,
church or day-care center; if
Cub leases space in the new
strip shopping center, just
south and east of the existing
Cub store, its new store would
be more than 300 feet south of
they school, said Eagan' city ad-
ministrator Tom Hedges,
"Cub Foods already meets
all of the regulations;" Hedg-
essaid.
Krause, however, said ques-
tions remain over where the
school's property line actual-
lyruns.
Hedges said the opponents
have incorrectly surmised a
connection between two dif-
ferent matters that the City
Council will take up at differ-
ent times. The Cub liquor li-
cense request would be one,
and it's not yet on the agenda.
A separate issue is on Tues-
day's agenda. The council will
take up the matter of separa-
tion requirements between
off-sale and on-sale liquor es-
tablishments and churches,
schools and other protected
uses of land. The meeting isn't
intended to address limits or
restrictions related to issuing
liquor licenses, officials said.
Gene VanOverbeke, director
of administrative services for
Eagan, said that last Novem-
ber,Cub had wanted a liquor li-
cense to sell 3.2 beer. But it did
not meet that setback require-
ment for spacing between the
grocery store and the school.
The store' is 195 feet from the
school's property line; the ordi-
nancerequired 200 feet.
The council determined that
the 200-foot spacing require-
ment for off-sale 3.2 beer was
not necessary, and it approved
a citywide ordinance amend-
ment that removed spacing re-
quirements for 3.2 sales. Cub
then got its 3:2 license.
A separate action at the
same meeting directed staff
to research the current 200-
foot spacing requirements for
other kinds of liquor licenses,
such as an off-sale liquor store
or on-sale liquor sales at a res-
taurant. That issue will be tak-
en up Tuesday evening.
Opponents have raised
questions over whether the
City Council should accept do-
nations totaling $2,000 to the
city's police and fire depart-
ments from Cub as it's plan-
ning to apply for anoff--sale li-
quorlicense.
It's not ulicommon for fran-
chises or companies to donate
to the city, and such donations
would in no way affect a-ly de-
cision to issue a liquor license,
Hedges said.
Joy Powell • 952-882-9017
s.~ Friday 2-6-2009
Eagan
stores '
But store owners
fighting new shops
By Frederick Melo
f melo@pioneerpress.com
As a liquor store owner,
Brenda Szoka knows exactly
what kind of establishment
she doesn't want to see more -
of in Eagan: another liquor
store.
Szoka, who opened Black
Diamond Wme and Spirits two
years ago, was part of a small
wave of off-sale liquor license
holders that have proliferated
across the city pf about 70,000
residents.
In November, the arrival of a
Kowalski's Wine Market on
Diffley Road, within a few
dozen feet of the MT Liquory,
sent a quiet jolt through estab-
lished shop •owners and their
employees, who complain their
industry already is saturated ,
in Eagan. Six liquor stores
operate on Diftley within a
four-mile stretch
"Apple Valley. has three
liquor stores. We have 17,"said
Kerry Illies, a xiight manager
at MGM Wme and Spirits on
Pilot Knob Road
Kowalski's might have been
LIQUOR STORES, ~B >
~. _
CGi~Tl1VUEC3, Fi2DM 1B liquor stores. .
When . Cuh
opened in -
•
> L _
November, the city went` a
tquor step further.- City,staff deter-
mined the new supermarket
S~®res was ;about 19& feet from the`
_ closest ,protected-use loca-
tions = Northview Elemen-
' just the'beginning. -Now, .city .
tary,and an Episcopal church.
officials say they expect the . Cub, which sells 32 beer, or
new Ciib Foods supermarket - liquor, with relatively low
at Diffley and Lexington alcohol content, would have
Avenue, across from been barred from. carrying
Northview Elementary alcohol,entirely
School, to apply for arioff--sale The council :responded by
liquor license. lifting' the spacing- restric-
Rather than close-the door tions entirely foT convenience
to new liquor shops, the stores and supermarkets car- .' ,
Eagan City Council has been ryirig 3.2, beer. City, officials
moving in the opposite direc- wonderedif they shouldn't do
tion. In , 2
004 and 2.005, they the same for liquor stores.
.
imposed a moratorium on..• "It is my sense that there '
issuing off-sale liquor licens= was .question: as to whether
es until they could determine this kind of spacing was need
whether to cap the number of ed in Eagan -in 2009,";Eagan
"shops, perhaps by linking the ' Mayor Mike Maguire said `.
cap to population figures, as "We were wondering if this
some neighboring cities do. notion of (space restrictions) .
They chose not to. was an antiquated notion," ,
"The council did land on Maguire continued` `jWe've
(the side of) free enterprise," had situations ``where liquor
City Administrator Tom stores have existed; and-dy .
Hedges said cares have .: (moved) in next , > ; .
About a year ago, the coon- door."
cil lifted a restriction that The council ordered si`affto
would have barred anall- compaTe`_ Eagan's spacing ,`
night Holiday gas station.. ~ restrictions to those of other
from opening at Diffley Road. " communities and' will exam, ,
and Interstate 35E. Zoning ine .the results at Tuesday
rules at the time required a night's council meeting. `
300-foot setback between the Szoka and at least five other
24-hour establishment ~ and , liquor store' owners plan. to
', "special protected use" attend and voice their opposi-'.
', locations such as churches tion to a' Cuff Foo,.ds 'liquor .
', and day care. centers; the _ shop and airy rule changes ''
council reduced the spacing
', requiremient to 200 feet. The ' Frederick Melo can 5e reoched at
', rule -change also, included -651-218-2172.
31
Agenda Memo
Special City Council Meeting
February 10, 2009
III. Discuss options for Civic Arena West Floor
ACTION TO BE CONSIDERED
Review information and provide staff with direction for further research or
background needed to consider funding options for the Civic Arena West floor
repair/replacement.
FACTS
• During the 2009 budget review the Council was made aware of the impending
issue of replacing the west arena floor because of numerous glycol leaks since the
floor was installed in 1995.
• There were several questions asked pertaining to the need to replace the floor
versus continuing the repair. The attached memo addresses the questions that
were raised and background information to respond to those questions.
• Issues for Council discussion include:
o If the floor were to be replaced completely it would cost approximately
$500,000 and would take approximately 13 weeks to complete.
o If a floor leak were to render the ice unusable during peak use the loss of
revenue would be added to the replacement/repair cost .
o Continuing to repair leaks if they can be easily found will cost
approximately $3-5,000 per year.
o Some funding options are identified but there may be other options the
Council may wish to consider.
o The bond on the east arena is due to be paid off some time in 2018. It was
originally anticipated that the $135,000 annual allocation would then be
available to fund larger capital expenditures.
ATTACHMENTS
Background memo on pages
City of Ea~au Memo
To: Juli Seydell Johnson, Director of Parks and Recreation
From: Cherryl Mesko, Superintendent of Operations
Date: January 23, 2009
Subject: ~ Civic Arena West Floor Leak
During the 2009 budget review the Council was made aware of the impending issue of
replacing the west arena floor because of numerous glycol leaks since the floor was
installed in 1995. The Council asked several questions including:
Whv wasn't the floor fixed initially?
The floor had a 2 year warranty starting September 18, 1995. Within those first two
years there were minor but detectable leaks that were easily repaired. During the-two
year warranty period the original contractor Premier Ice Rinks went out of business
and their umbrella company, Premier Electric took over the warranty. Because the
original company went out of business, staff solicited legal guidance about how best
to preserve the integrity of the floor from future failure. The advice was to require
Premier Electric to continue fixing the leaks anticipating that they would all be found
and repaired from future failure. Unfortunately it is now 13 years since the floor was
installed and Premier Electric has been coming back each year to repair the floor as
needed.
• Whv didn't the City take legal action to have the floor replaced?
While some of the glycol leaks occurred within the warranty period, the majority
have occurred after that period. With the original contractor no longer in business and
Premier Electric willing to come back to repair damage, it was legal staff's opinion
that the repair as needed was a reasonable expectation since we could not go back to
the company that originally installed the floor and seek replacement. It is now legal
staff's opinion that after 12 years it is no longer reasonable to bring Premier Electric
back to repair the floor leaks.
• What is the urgency to get the floor replaced in the near future?
The primary motivator to proactively replacing the floor is to control when the work
would occur. If we wait for the floor to fail we will not only be faced with the
replacement cost but the compounded issue of lost revenue.
What is the replacement cost?
It is expected that the cost would be approximately $500,000 for a fully replaced
floor. There are options that could put a new floor over the existing for less money
but it would raise the floor height by 7 inches and require ramping to get people onto
the ice to meet ADA requirements. Other options like incorporating geothermal
alternatives would be more costly but may have some energy payback.
How could this be funded?
o Borrow from the Community Investment or other fund that would need to be paid
back over several years. In essence, a defined amount of retained earnings would
need to be earmarked each year to pay this back. If there are not sufficient
retained earnings, it may be necessary to tap the renewal and replacement fund
reserve. The original building was built using funds from this account.
o Borrow from the Renewal and Replacement Fund which currently has a balance
of $417,266. This still would not be enough to fund the entire replacement. The
challenge with this option is that if this account is depleted and there is a need to
replace equipment that the fund was designed to replace, there would not be
money available.
o Combination of both of the above.
Agenda Information Memo
February 10, 2009 City Council Meeting
IV. REVIEW 2009-2010 CITY GOALS
ACTION TO BE CONSIDERED: No formal action is needed. The Council is asked to
review the proposed goal statements and provide feedback to staff in order to formally
adopt the City of Eagan Goals at the March 3, 2009 regular City Council meeting.
FACTS:
• The City Council held their 2009-2010 Goals Retreat on January 27-28, 2009, at
which time there were six goals that were identified by the Council.
• Per the direction of the Council, staff has refined the goals statements and is now
seeking Council review before bringing the goals to the March 3, 2009 City
Council meeting for formal consideration.
• Also per the request of the Council, the proposed goals were sent to each
Councilmember via e-mail in order that any proposed changes to the language of
the goal statements could be suggested to City Administrator Hedges in advance
of the February 10 meeting.
• The enclosed goals show "headings" or "categories" for each of the goals as
identified by the Council at the Goals Retreat; however, those headings are
proposed to be removed prior to formal adoption of the goals.
• The Council is encouraged to discuss the proposed goals and make
recommendations to staff on any changes to the goal statements prior to formal
consideration of the goals on March 3, 2009.
ATTACHMENTS:
• Enclosed on pag are the proposed 2009-2010 City of Eagan Goals.
S
DRAFT
2009-2010 City of Eagan Goals-Proposed
Budget/Fiscal
• Maintain the City's long standing fiscally conservative budgeting approach through the creation of
sustainable and independent long term budgets.
Tax Base/Economic Vitality
• Preserve and expand Eagan's tax base and economic vitality by encouraging maintenance and
investment in our residential, commercial, and redeveloping neighborhoods, while pursuing measures to
mitigate airport noise, and supporting the retention, expansion and attraction of quality businesses.
"Infostructure"Broadband
• Ensure adequate bandwidth/capacity for the future by addressing the "infostructure" needs of Eagan's
residents, businesses and employers.
City Services
• Increase the City's focus on meeting the changing demographics of the City, including lifestyle needs of
the aging population.
Sustainability/Environment
• Option #1-Use City resources efficiently through energy conservation and sustainability strategies that
encourage and develop comiections between environmental quality and economic vitality for our
residents and businesses.
• Option #2-Increase City resource efficiency through energy conservation and sustainability strategies,
and encourage residents and businesses to join the City in reducing greenhouse gas emissions in our
community.
• Option #3-Exemplify the commitment to sustainable and energy efficient strategies by using local,
non-polluting, renewable, and recycled resources, and encourage residents and businesses to do
likewise.
Civic En~a~ement
• Strengthen civic engagement and volunteerism in the community.