No preview available
 /
     
05/29/2009 - City Council Finance Committee AGENDA FINANCE COMMITTEE MEETING FRIDAY, MAY 29, 2009 11:30 A.M. - 1:30 P.M. CONFERENCE ROOMS 2A&B 1. AGENDA ADOPTION II. EAGAN FIREFIGHTERS RELIEF ASSOCIATION PENSION NEGOTIATIONS 57 III. STORM WATER QUALITY CIP FUNDING IV. COLOCATION FACILITY UPDATE j 3 V. CEDAR GROVE COMMUNICATIONS PLAN VI. OTHER BUSINESS VII. ADJOURNMENT CllyofEaQali Ie a TO: FINANCE COMMITTEE MEMBERS MAYOR MAGUIRE AND COUNCILMEMBER BAKKEN FROM: CITY ADMINISTRATOR HEDGES DATE: MAY 22, 2009 SUBJECT: FINANCE COMMITTEE MEETING / FRIDAY, MAY 29, 2009 A meeting of the Finance Committee is scheduled for Friday, May 29, 2009 from 11:30 a.m. to 1:30 p.m. to discuss four (4) agenda items that were directed for a fact finding by the City Council as a whole. Attached are information memos/fact sheets on each of the four (4) a ends items. While it is not an agenda item, an informational memo is attached on pages through in response to a request by Mayor Maguire for information about the potential for an EDA levy in a future budget year. If the Committee wishes to discuss this alternative further, it could be placed on an upcoming Finance Committee Agenda. The meeting will be held in Conference Rooms 2A & 2B and Mira will contact you early next week regarding your choice for a light lunch. Thomas L. Hedges City Administrator 41100 City of EMello TO: TOM HEDGES, CITY ADMINISTRATOR FROM: JON HOHENSTEIN, COMMUNITY DEVELOPMENT DIRECTOR DATE: MAY 22, 2009 SUBJECT: PRELIMINARY BACKGROUND REGARDING EDA LEVIES This memo is intended to respond to a request by Mayor Maguire that staff begin to research background relative to EDA levies. The topic arose at one or more of the meetings regarding the City's request of the Legislature for a TIF district extension with Tom Poul and Bill Schreiber of Messerli and Kramer. Specifically, Mr. Schreiber mentioned on several occasions that and EDA levy is one of the sources many cities use to support redevelopment projects and asked whether Eagan had a levy or had considered one. In addition to its potential as a revenue source, he noted that it is not unusual for Legislators to ask what steps a City has taken itself to reduce the need for or length of an extension. EDAs have the authority under state law to levy a tax, unless it is specifically denied that power by the Council in its resolution creating the Authority. A review of the Resolution Establishing the EDA in 2000 does not indicate that the. power was limited, but the Eagan EDA has not levied a tax to date. Ehlers has estimated that an EDA levy for Eagan at the statutory maximum rate could raise approximately $1.4 million per year. If the Committee and Council requests additional information in this regard, further analysis could be prepared to define the cost to typical homes or a range of home values, to provide context for further consideration. Staff is currently researching whether an EDA levy would be within or outside of the levy limit. Some research to date suggests that EDA levies may be outside the limit, under certain circumstances. If the authority to tax was created prior to the establishment of the current levy limits, it may be outside the limit. This is to insure that the intent was there originally and the decision to add the levy is not solely arising out of an effort to bypass the limit. It appears that Eagan EDA's Establishing Resolution meets that test. One qualification shared by Mr. Schreiber is that a number of cities whose EDAs levy a tax are careful to format the EDA in a such a way that there is some distinction between the EDA and the City Council, so it is more specifically a separate taxing entity from the Council - going so far as to hold the meetings on a different night, having a Councilmember other than the Mayor serve as President of o`, the EDA, having separate staff from the City's community development staff and so on. He suggested that there may be a number of models from other cities to look at, if the Council is interested in considering it further. Mr. Schreiber also indicated he would be willing to attend a Committee, Council or EDA meeting to share additional thoughts, if that would be useful. Ordinarily the EDA levy would be considered in parallel with the ordinary budget process, with the exception that a notice of intent must be sent to the County by July 1 of the year preceding the first year of the levy. As a consequence, if there is an interest in looking into the possibility further for 2010, additional discussion would need to occur in time for an action item to be included on the June 16 Council Agenda. Please let me know if you or the Committee members have other questions in this regard. 6mmunity Develop nt Director Agenda Information Memo May 29, 2009 Eagan Finance Committee Meeting II. EAGAN FIRE RELIEF PENSION AGREEMENT DIRECTION TO BE CONSIDERED: To provide a recommendation to staff regarding the Relief Pension Agreement Proposal. FACTS: • The current pension agreement between the Fire Relief Association and the City will expire on December 31, 2009. • The Pension Committee representing the Relief Association is proposing the following for the next agreement: o A 3-year agreement that will begin on January 1, 2010 and end on December 31, 2012. o Continue from the 2009 agreed upon dollar amount, a 4 percent increase for each firefighter per year thereafter and with state aid flowing through to offset City's liability for the length of the agreement. o Continuing from the 2009 agreed upon dollar amount, a 2 percent increase for administrative costs per year for the length of the agreement. • From the mid 1960's when the Fire Relief Association was first formed as a result of the City creating a volunteer Fire Department, firefighters were recipients of a Defined Benefit Pension Plan. • The City would negotiate with representatives of the Firefighters Relief Association to determine what the defined benefit amount should be for the volunteer firefighters. • Parameters for the Defined Benefit Program were established by statute. • During 1996, Fire Relief Association's could convert from Defined Benefit to Defined Contribution and the first agreement for Defined Contribution went into effect in 1997 through 2004, a second agreement extended 2005 through 2009. • The City Administrator and Director of Administrative Services will provide additional background on both the Defined Contribution and administrative fees at the Finance Committee meeting. • A copy of information prepared by the firefighters Relief Association Pension Committee was delivered to the City on May 11 and is attached for review by the Finance Committee. ATTACHMENTS: • Relief Association 2010 Pension Agreement attached without page number. 4 Agenda Information Memo May 29, 2009 Eagan Finance Committee Meeting III. STORM WATER QUALITY CIP DIRECTION TO BE CONSIDERED: To provide a recommendation to staff regarding funding options for Storm Water Quality Capital Improvement Projects. FACTS: • At the May 12, 2009 City Council workshop, the Council discussed the proposed 2010 - 2014 Part III Public Works CIP, including water quality improvements. • The cost of water quality projects included in this proposed CIP exceeds the available funding by approximately $78,000 over this five year period. • Water Quality improvements have historically been financed by a specified percentage of the storm drainage monthly/quarterly service charges, development related fees, grants, and other onetime resources. • The City Council directed the Finance Committee to review the proposed water quality projects and the funding options that might be available to support these projects. • Staff is in the process of soliciting responses to an RFP to undertake a comprehensive rate study for all utility fees. The study will be undertaken this summer and into the fall with revised rates ready for implementation in 2010 per previous City Council direction. • Public policy issues for discussion include the following: o What is the appropriate level of expenditures for water quality improvement projects in light of current regulatory requirements and community expectations. o Is the current allocation of the storm drainage utility service charges appropriate for current circumstances. o Should storm drainage service charges be increased to provide more funding for water quality projects. o Should funds currently available in the Storm Drainage Trunk Funds for future water drainage improvements be redirected to current high profile water quality projects. ATTACHMENTS: (None) Agenda Information Memo City Council Finance Committee May 29, 2009 IV. COLOCATION FACILITY UPDATE DIRECTION REQUESTED: To provide feedback and direction relative to: 1) proceeding ahead with a Federal Stimulus application for a broadband colocation facility in Eagan, and 2) whether the proposed agreement for use of outside consultant's hours and compensation is acceptable. BACKGROUND: • Acting on the recommendation of the Ad Hoc Broadband Committee back in March, the full City Council authorized staff to determine where a colocation facility might be located in Eagan and directed the retention of broadband consultant Andrew Cohill of Design Nine to help the City prepare an application for stimulus funds. • As we monitor the Federal government's plans for obtaining and awarding broadband stimulus funds, it appears the rules governing application for funding should be issued very soon, in mid- to-late June. • It is expected that applications will be due within 30-60 days after the rules are published, so there is a need to be ready with several of the required elements within a tight timeframe. • A scope of work and expected fees has been obtained from Design Nine. Staff recommends that our broadband consultant, Mr. Cohill, be retained on an hourly not-to-exceed-a-certain- dollar- cost basis rather than a higher total project cost as a way to only pay for hours actually utilized in preparation of the stimulus application. See Scope of Work, Exhibits A&B. • As part of the application it will be important to obtain letters of support from key corporate business leaders and state officials. The presence of the Mayor or Council designee is desired to assist in making the official "ask." • It was earlier thought that the rules for application would be released June 1. Based on that timeframe (which is now pushed back slightly) Andrew Cohill had prepared a proposed project timeline with deadlines that will now need to be updated as well. However, the committee can clearly see that staff and the consultant will be required to accomplish a number of deliverables within a compressed timeframe. • The Eagan Technology Working Group is also assisting in obtaining outside letters of support for the project. ATTACHMENTS: • Stimulus Proposal Timeline on pages -7 through 10 • Exhibits A& B (Scope of Work and Fee Schedule) on pages through - DESIGN NINE broadband architecture + engineering May 8, 2009 Stimulus Proposal Timeline There will be no more than 30 to 60 days to prepare and submit a finished proposal. Communities that wait until the end of June to begin preparing the proposal will probably not be able to develop a competitive grant proposal. Not only is the timeframe to prepare the proposal short, but it comes during the summer, when many key people may be unavailable while they are on vacation. Activity Due By Notes ? Discuss proposal with local leaders and stakehold- First meet- ers ing no later than May 15 ? Identify the grant writing team (no more than 3-5 May 22 people with previous grant writing experience and the time and influence to get all needed information, support, and commitment letters. ? Meet with local elected officials to discuss proposal. First meet- Critical to identify if resolutions Prepare draft resolutions of support. If there is only ing no later and public review is needed, and 30 days to submit an application, there may not be than May to schedule those before the end time to get an elected body (town council, board of 22 of June. supervisors) to advertise and vote on the resolution, so start immediately on this work. ? Identify 20% match sources. If cash match from First dis- Match sources can be developed local sources, get firm letters of commitment. If in- cussions through June and early July. All kind match, provide very specific information about should oc- match sources must be identified the kind and type of match and how the cash cur in mid- and committed by July 15. equivalent value was determined. May ? Identify local business and service provider part- First meet- All partner agreement, commit- ners. ing as soon ments, and letters of support as Council should be completed in draft support is form no later than the third week assured. of June. design nine, inc. • 2000 kraft drive, suite 2180 . blacksburg, va 24060 540.951.4400 • info@designnine.com • www.designnine.com - DESIGN NINE broadband architecture + engineering Activity Due By Notes ? Meet with economic development officials and get First meet- Draft letters of support no later both letters of support but assistance tying the pro- ing no later than June 12 posal to broader economic development goals. than May 25 ? Identify the proposed project management team and May 26 collect both half page and one page resumes from each management team member (note that the pro- ject management team may NOT be the same as the proposal grant writing team). Keep in mind that the management team must have business, financial, and telecom experience in broadband and business management. Management teams that consist only of public employees and community nonprofit lead- ers may not be competitive. ? Gather local data that will be needed to show June 5 need: ? Unserved and under-served areas. ? Literacy rates ? Free lunch percentages ? Unemployment figures ? Get a DUNS number (Dun and Bradstreet). A June 15 DUNS number is free and can be obtained from the D&B Web site. ? First draft of stimulus proposal is complete and June 15 This will be a pro forma draft, ready for review by partners and stakeholders. since we do not know what the actual proposal format require- ments will be. design nine, inc. • 2000 kraft drive, suite 2180 • blacksburg, va 24060 540.951.4400 info@designnine.com • www.designnine.com 9 DESIGN NINE broadband architecture + engineering Proposal Preparation While the exact form of the proposal is not yet known, our experience with preparing many grant proposals suggests the following will be required in some form. If each of these areas are addressed in draft form (typically 1-2 pages each), it will be relatively quick and easy to adapt the draft materials to meet the exact proposal format. Topic Area Description Suggested Length ? Needs Narrative Why the region needs broadband. 2 pages ? Benefits Narra- Discuss economic development strategies for the community/ 2-3 pages tive region, complementary community development efforts (e.g. Main Street revitalization), and outcomes (new jobs, new business attraction, improved focus on cluster business devel- opment, work from home opportunities. ? Project Descrip- What will be done. 3-4 pages. tion Where it will be done (unserved and under-served areas). How it will be done. Who will do it. ? Match Narrative Describe all sources of match funds. For non-cash and in- 1-2 pages kind match, provide detail on how cash equivalent match was calculated ? Budget Summary Spreadsheet that shows major budget categories. 1 page spreadsheet ? Budget Narra- 1-2 paragraph descriptions of major expenditures in each 2-4 pages as tive budget category. needed ? Detailed Budget Detailed parts lists, cost estimates, as needed to show compe- Depends on tent and experienced planning. size of pro- ject. ? Maps Well-illustrated, appropriate maps of service areas and As needed. community/region. ? Management Management Team bios of the team/board of directors that 1 page bio per Team will be responsible for managing grant funds, purchasing, hir- team member. ing consultants and contractors, and filing grant reports. design nine, inc. - 2000 kraft drive, suite 2180 - blacksburg, va 24060 - 540.951.4400 - info@designnine.com • www.designnine.com DESIGN NINE broadband architecture + engineering Stimulus Grant Proposal Writing and Development Team No more than 3-5 members to keep decision-making efficient. Grant writing team should have: ? Prior experiencing writing grants ? Substantial influence in the community to make calls and request support. ? Time in May, June, and July to plan the project, contact all needed participants and stakeholders, collect commitment letters, meet with key appointed and elected officials, develop a project budget, and take responsibility for writing and submitting the grant. Name Affiliation Phone Number Email design nine, inc. • 2000 kraft drive, suite 2180 blacksburg, vo 24060 • 540.951.4400 • info@designnine.com • www.designnine.com DESIGN NINE broadband architecture + engineering May 8, 2009 Exhibit A Scope of Work Consulting Services provided to the client include, but are not limited to: • Assistance with the development of a stimulus funding proposal • Identification and negotiation with potential public and private proposal partners • Client or client related consultation • Meetings and presentations • Telephone consultation • Report or work product generation • Research Scope in more depth 1. Stimulus Funding Proposal • Work closely with and advise the City on key information needed for a successful funding proposal. • Write and edit material needed by the funding application as required. • Assist with budget and budget narrative portions of the proposal as required. • Advise the City on funding guidelines and requirements needed to successfully compete for funds. • All other relevant proposal preparation tasks as requested by the City of Eagan. • Assess and develop technical information needed to prepare a competitive proposal focused on a regional colocation facil- ity. design nine, inc. • 2000 kraft drive, suite 2180 • blacksburg, va 24060 • 540.951.4400 • info@designnine.com • www.designnine.com I I 0 DESIGN NINE broadband architecture + engineering Exhibit B Fee Schedule All work will be billed according to the rate schedule below. Total hours billed per day not to exceed ten (10) per individual Design Nine staff performing work. Total billing for work performed not to exceed $10,000. Design Nine will present itemized invoices monthly, detailing work completed. These invoices shall be due and payable upon presentation of an invoice to Client, net 30 days. Work performed will take place between May 15th, 2009 and August 15th, 2009. Rate Schedule for Staff Hourly Rate Broadband Architect $225.00 Senior Broadband Planner $150.00 Legal counsel (billed as straight pass thru cost with no markup) $300.00 Financial engineering $150.00 GIS/CAD design and mapping work $80.00 Technical support and Web development $65.00 Exhibit C Travel Reimbursement All reasonable and ordinary travel expenses (airfare, meals, lodging, mileage, etc.) incurred in the completion of the work will be itemized on the next month's invoice. Design Nine will provide appropriate receipts for expenses incurred. Total travel reim- bursement not to exceed $3,000. design nine, inc. • 2000 kraft drive, suite 2180 • blacksburg, va 24060 • 540.951.4400 • info@designnine.com • www.designnine.com 1 <3, Agenda Information Memo City Council Finance Committee May 29, 2009 V. CEDAR GROVE COMMUNICATIONS PLAN DIRECTION REQUESTED: To discuss and provide direction regarding an update of the Communications Plan relative to the Cedar Grove Redevelopment District. BACKGROUND: • Following the completion of the Cedar/13 Study, the City adopted a Communications Plan for the Cedar Grove Redevelopment District in 2000. In 2004, the Council directed the Plan to be updated and the revised plan was approved in November of that year. As plans move forward in anticipation of the implementation of the first phase of development in the District's Core Area, the Council again directed that an update of the plan be prepared, to be reviewed by the Council Finance Committee. • While the 2004 Plan included communications elements to a range of audiences by a number of means, one of the primary focuses was the business and property owners in the immediate Cedar Grove area as the City went about the acquisition of properties and relocation of businesses. • Interestingly, the Redevelopment Project Phases section, Phases 5 and 6 fairly accurately describe the point we have reached in the process, particularly as it relates to public perceptions and the need for ongoing communications as development approvals and construction begins. • While some aspects of the previous plan continue to be appropriate - in particular those aspects that clarify the continuity of key audiences, messages and redevelopment goals - others relate to steps that have been accomplished or the current phase of the redevelopment suggests that they be modified. • In particular, the fact that substantial acquisition has been completed and core area redevelopment is approaching implementation, it will be appropriate to refocus the updated version of the plan to focus additional messages toward the broader community audiences and those publications that will attract additional business and development interest in the project. • In addition, the impact of the current state of the development and financial markets on the timing and predictability of future phases presents a context that will need to be addressed for various steps and messages. • The purpose for the update is to provide the framework for a proactive approach to the communication of the key messages to various audiences in the short term and over the next several years as development occurs, development opportunities arise and the project gains momentum. • To complete the plan update, it will be necessary to bring the project background current from the date of the last update to include project accomplishments and, following Committee discussion and direction, to incorporate the updated key messages and communications opportunities into the messages and tools sections of the 2004 plan. 1,3 ATTACHMENTS: • May 21, 2009 staff memo on pages 1 S through • 2004 Cedar Grove Communications Plan on pa es througl97 • April 7, 2009 preliminary staff memo on page through Q 411~ City of Eaaan MeMo To: FINANCE COMMITTEE CITY ADMINISTRATOR HEDGES From: COMMUNICATIONS DIRECTOR GARRISON (In consultation with Community Development Director Hohenstein & Administrator Hedges) Date: MAY 21, 2009 Subject: CEDAR GROVE TIF/COMMUNICATIONS PLAN The original Cedar Grove Communications Plan in November of 2004 (see attached) identified five phases for communications efforts, the likely barriers, key audiences and messages. A subsequent April 7, 2009 memo from Director Garrison (prior to court decision) identified communications opportunities and asked for feedback. Communications Environmental Scan • Mayor Maguire has asked for accelerated proactive communications regarding progress in Cedar Grove. • Per the 2004 plan communication phases, Eagan has selected a master developer and has preliminary concept approvals for the first part of the redevelopment; we do not yet have formal approval of actual plans, nor the first construction by Doran & Pratt. • Some residents don't understand "what is taking so long," while property rights advocates complain we are harming established businesses to help get new business development started. • At a time many other cities' development efforts have ground to a halt, Eagan has up to three aspects of Phase I getting ready to move to the next stage of approval. • While understanding market conditions have changed, some residents feel Phase I concepts fall short of what they originally envisioned in the district, particularly with respect to recreational open space, while businesses that are staying in the district can't wait for development to begin. • A court decision that many expected would go the City's way did not on appeal, leaving some people uncertain about Cedar Grove's future despite the message that Phase I construction is not affected by the Court's ruling. It also means the property acquisition phase is not yet complete. • Whereas 2008 communications concentrated on the businesses in the area and those affected by demolition, in 2009 the emphasis must return to communicating (progress) to the general public and homeowners in Cedar Grove. • Communications can be much more comprehensive and reach not just the general local media, but the financial and real estate press & television/radio as appropriate. It also must be more anticipatory. IT • Gary Hansen indicated that he has heard concerns about density and vertical development. Paul Bakken indicated that the Council should weather those concerns because that is what the City has asked for in this area. • While the Council responded on April 7 to concerns raised about affordable housing in the development, apparently some neighbors have contacted an attorney who has called the City about the City's plans relative to the Youth Supportive Housing and other affordability alternatives in the area. • After negative publicity the day of (and day after) the court decision, reader response comments slowed to only a single new addition by Thursday. Immediate Opportunities: • CDA Ground Breaking on Youth Supportive Housing-June 4 (same day as Showcase Eagan.) • MVTA Transit Station Ground Breaking-June 8, 2004. • Guest column/Op Ed(s)-As needed when Council knows its next step(s). • Breakfast with the Mayor-Ask Ruthe to schedule the next BWM down in the Grove at Jensen's or the Bowling Center to drive home what is happening down there. • Inside Eagan-Taping of Mayor's next TV show in June could target Cedar Grove, or could push to prime time special and take e-mailed questions from public. Upcoming Opportunities • Formal Approvals • Construction ground breakings on apartments, hotel or senior housing • City Newsletter-Three weeks maximum to go before next newsletter, but if City response is known by then, we can emphasize that. If not, we can emphasize existing messaging that Phase I is not affected. • Realignment of Roads in area • Celebrate successes once central gathering space options in the redevelopment are identified and agreed to. • Potential improvements to Jensen's Supper Club, Cedarvale Lanes, and district north of Hwy 13 Ongoing Opportunities • Updating the Cedar Grove pages on the City Web site • Consider additional distribution run of Cedar Grove Gateway newsletter-This piece has been quietly very effective at keeping local business owners down in the area informed. Would recommend we also add links to it from the new Eagan Business News Online edition. • E-TV story coverage of opportunities outline above. Discussion on DRAFT Key Messages: ? We're moving ahead in Cedar Grove Plans are consistent with our values ? Council committed to revitalizing this important gateway to Eagan (Key messages continued) ? Essential to get initial market supportable uses into the development to build around. 1) Council not abandoning its interests in new urban village, open spaces, and appropriate retail, but aware of market realities. ? Council and the Public shared concerns and we are responding to those concerns. A) Finer detail drawings show where sidewalks and trails and connections are in a full urban pedestrian system B) A central gathering space/park area is being added to the first phase plan and connections will exist to the nearby Woodhaven Park. C) Discussions continue on retail opportunities; increased traffic with office, market rate apartments, and hotel(s) will aid those discussions. ? Project Financing o Development of the Core Area has always been expected to require multiple funding sources - the Core Area will not fund itself o The downturn in the economy will require additional funding beyond original projections - the basis for the request for a term extension at the Legislature. Discussion of Questions to Guide Communications: ¦ Are the immediate, upcoming and ongoing opportunities the right ones? ¦ Are we missing any key messages? ¦ What options appeal most to the Committee? ¦ Is there anything else the Council is hearing "on the ground" that should affect our messaging or deliverables? Additional suggestions and tactics would be addressed in an updated Communications Plan based on discussion, including additional audience delineation, and timelines. (cdar Grove Communications Plan City of Eagan, Minnesota Cedar Grove Communications Plan November 2004 (Updated from 2000) I- C<?iLtr Grove Communications Plan Greater Cedar Grove Area Redevelopment Communications Plan Table of Contents Page 1. Framework for Redevelopment Communications 3 2. Project Background 5 3. Purpose for Communications Plan 6 4. Target Audiences 6 5. Communications Goals 7 6. Messages 8 7. Communications Tools ....................................................9 -2- Iq Q Cedar Grew,, Communications Plan Greater Cedar Grove Area Redevelopment Communications Plan 1. The Framework for Redevelopment Communications Redevelopment is always difficult because it involves change and change is hard for people. They love the results, but hate the process. There are basically six different phases of the redevelopment process for this project. Each has its own set of concerns and issues for the public. An effective communications component to a redevelopment project moves the public through all six phases to the results. Redevelopment Project Phases Phase I Need Identification The city identifies an area or areas in need of redevelopment. In this phase, the public has little or no awareness of the potential redevelopment project and may or may not agree with the need for redevelopment or what role the city should play. The key communication issues during this phase include forecasting key messages about the need, and the primary purpose for the redevelopment, whether that is blight removal, improved tax base, enhanced "gateway" image of a community or something else. It important to settle on one prime goal for the redevelopment. While there can be secondary goals, settling on a primary goal will help to avoid measuring the redevelopment's success using different yardsticks. That primary goal will need to be reiterated and underscored throughout the project. A decision is made in this phase to proceed with a redevelopment concept. A communications plan is drafted at this point in the process to serve as a blue print for ongoing communications efforts. Phase 2 Concept Development This phase encompasses the planning process, beginning with the design of a redevelopment concept. A group is identified to assist with concept development, and broad-based community input is received. The communications process forecasts the need and purpose for the redevelopment and the planning process. The redevelopment process identifies desired outcomes; potential redevelopment uses and design ideas, and designates the redevelopment area. Phase 3 Concept Refinement In this phase the concept is tested for market and financial feasibility with the help of developers and market specialists. The redevelopment concept is then refined, based on the financial and market analysis. A critical communications/public participation issue in this phase is the need to involve the community in the -3- QC) Grove. CotntnunlcaliOnS Plan refinements of that concept. At this phase there may be some growing awareness of the potential redevelopment project in the community. Communications efforts must increase knowledge about the project, especially as it relates to the need, the purpose, the plans, the process and public participation. Phase 3 Developer Selection At this phase the city contacts qualified developers and discusses the redevelopment concept and program, identifying developers for a qualification process. Developers' experience and financial capabilities are assessed. One or more developers is selected for further analysis of the redevelopment feasibility. The city reviews general plans, including uses, design concepts, densities and financial feasibly with developers. Communications efforts from the previous phase continue throughout this phase. Even though community awareness of the redevelopment project may be growing, it is likely few believe the redevelopment will really happen. Phase 4 Development Agreement Most of the planning is completed and a developer has been selected, but the project is still months from construction. A pre-development agreement is negotiated with one or more developers, providing a period of exclusive rights for development. In that agreement, the developer refines plans and assesses market feasibility. In the development agreement, the developer secures a lease commitment and financing for the project. The developer also completes land use and other regulatory reviews. Finally, the development agreement occurs when the developer removes development agreement contingencies and initiates land acquisition and building design. By this time, the public already has some awareness that the project has begun and is moving forward, but there is little or no visible proof of redevelopment. Opponents continue to resist change. Supporters don't understand what is taking so long. Phase 5 Construction All development agreements are final, acquisition has begun and even some initial demolition of existing properties has occurred. Many early opponents have accepted that the redevelopment is taking place, but the new development is still not up and visible to the public. Public concern has shifted from the pre-existing businesses and homes to the new development that will replace the old properties. There are concerns about the impacts of those new businesses and housing developments on the community. At this point, it is important to keep communications efforts up, providing a vision for the future redevelopment, and reiterating need, purpose and benefits to the community. -4- C _Q Cedar Grovc Comnrnunicaliorrs Plan 2. Greater Cedar Grove Area Redevelopment Project Background The City of Eagan and area business community have been wrestling with the need to revitalize the Cedar Grove Shopping Mall area for about a decade. Once considered the "downtown" of Eagan, the Cedar Grove Shopping Mall area has been superseded by other new retail areas. The City Council initiated a process to address this fact. A brief chronology of the subsequent planning activities is provided: ¦ Early 1990s. A shopping center study examined prominent shopping nodes in the community. As a follow-up to that study in 1994, Eagan had special legislation passed by the Minnesota Legislature making the Cedar Grove Mall area a special service district with special tax levying authority. ¦ 1998. The Eagan City Council initiated a redevelopment study of the Cedar Avenue and Highway 13 area. The Cedar Avenue/Trunk Highway 13 interchange study area concentrated on the 235 acres of land located in the northeast and southeast quadrants of the interchange, with a focus on the Cedar Grove Mall area. The study found that the viability of Cedar Grove Mall has been significantly reduced over time because of a number of factors. These include the construction of the interchange and changing traffic patterns/access, the changing marketplace favoring "big box" retail, and increased competition from other retail centers. ¦ 1999. The Cedar/13 Task Force, a group composed of 20 volunteers representing area residents, business owners and City commission members is formed. ¦ November 1999. The task force completed its report with recommendations for the redevelopment area, including various types of land uses for the area. ¦ Summer and Fall 2000. The City examined the market and financial feasibility issues of the Task Force concept, working with developers and other specialists to assess development issues. The concept was refined based on the findings of the financial and market feasibility study, providing the necessary detail to make it a workable plan. ¦ Summer/Fall 2000. City solicits development proposals and selects developers for several parcels. Three developers (Ryan Companies, TOLD and Amcon unable to prepare acceptable plans. Keystone development is approved. a0; Cedar (;rove Communications Plan ¦ 2002 to present. Two major projects have been approved and are in various phases of completion. Keystone Properties development includes a 129 unit senior development. The development is expected to be occupied early 2005. Nicols Ridge is a 230 unit single-family attached development under development by Orin Thompson Homes. The first phase of this project is under construction with sales and occupancy projected 2005. ¦ Spring 2004. City initiates a competitive developer selection process in the Spring 2004. Schafer Richardson (owner of the Cedar Grove Mall) partnered with Ryland Homes to present a redevelopment proposal. The development team is currently refining their proposal and assessing financial and market feasibility. A central feature of the City's redevelopment strategy is the implementation of a communications strategy to inform Eagan residents, business people and community leaders about the proposed redevelopment, informs and involve them as the planning process. 3. Purpose for the Communications Plan The purpose of this communications plan is to help the City of Eagan organize its Greater Cedar Grove Area Redevelopment communications and outreach efforts with the public and with other important groups, also called "target audiences". This plan identifies a set of target audiences, goals, key messages, tools, tactics and strategies to accomplish that communications effort. This communications plan looks out one year but should be reviewed quarterly and updated to maintain a proactive communications effort. 4. Target Audiences ¦ All Eagan Residents ¦ Residents and Businesses within and bordering the Greater Cedar Grove Redevelopment Area ¦ City opinion leaders Council, Board and Commissions City staff Civic organizations Task force members Community groups ¦ News Media Eagan This Week Business publications Eagan Sun Current Business and regional sections of Star Tribune/ Pioneer Press -6- a3 Cedar Grove Communicaiioris Plan 5. Communications Goals The plan's communications goals correspond to the target audiences. Each of the communications tactics and strategies listed in this plan are built from these goals. The City will make regular and timely efforts to achieve these goals using a variety of tools described in Section 7. Goal No.! Residents and Businesses in the Redevelopment Area To keep home owners, business owners and tenants in the redevelopment area, and bordering the redevelopment area, informed of what is happening in the redevelopment project area and why, and the timing of future activities, especially those dealing with acquisition and relocation. Goal No. 2 Community Residents To keep all Eagan residents informed about the Greater Cedar Grove Area Redevelopment, the reasons for it, progress with it and how they can stay informed and involved. Goal No. 3 Community Opinion Leaders To keep community opinion leaders including but not limited to Council Commissions and civic groups, informed about the redevelopment and provide them with the information they need to inform community members and answer questions. Goal No. 4 News Media To provide the news media with accurate and timely information on Eagan's Greater Cedar Grove Area Redevelopment, enabling the news media to assist the City in keeping community members, area developers and the greater metro area informed. c~ / Cedar Grove. Cornrnunicalions Plan 6. Messages The key messages for the Greater Cedar Grove Area Redevelopment will grow and evolve as the project develops. However, throughout the project it will always be critical to reiterate the need, the purpose, the benefits, what happens if nothing is done, and how the public can stay informed and involved. The Need 1) The City of Eagan is developing a plan to revitalize and redevelop the Greater Cedar Grove Area, which includes the Cedar Grove Mall and area surrounding it from Highway 77 to Silver Bell Road, both north and south of Highway 13. 2) Cedar Grove Mall was once considered Eagan's "downtown" but for many years it has not been a vital retail center. For about a decade the City and area businesses have been considering strategies to improve the area's vitality. 2) Redeveloping the Greater Cedar Grove Area will restore the health and vitality to the area business community and adjacent properties. The Plan 3) The Cedar/13 Redevelopment Task Force developed a concept for redevelopment of the Greater Cedar Grove Area in November 1999 and market and financial analysis have been used to refine that concept. 4) The Greater Cedar Grove Area Redevelopment will incorporate a combination of new housing options for Eagan residents, commercial and retail opportunities, open space and improved street circulation, in a way that is compatible with adjacent residential neighborhoods. 5) The Greater Cedar Grove Area Redevelopment would provide commercial/retail uses that reflect the reality of the current highway infrastructure and address current congestion problems, improving street circulation. The Process 6) The initial Greater Cedar Grove Area Redevelopment concept projected a 15-year redevelopment timeframe. However, financial and market analysis indicate the redevelopment would likely occur in the next two to five years. 7) The redevelopment process will involve several steps - the completion of a development concept, selection of developers, negotiation of a development agreement, and construction. Public Information 8) The community will be kept informed of the progress of the redevelopment in a variety of ways, including the City newsletter, local newspapers, and open houses. as Ceder Grcme> C'ommunicalions Plan 7. Communications Tools These are the communications "tools" or products that will be used with the tactics and strategies to accomplish the project's communications goals. Type Description Frequency City Web Page Articles regularly featured on the City's Web page, Ongoing Updates along with available graphics (see vision display boards). Monthly Project A two-page project summary will be updated monthly Monthly Updates on the City's web site and be available in printed form at Cedarvale Mall and for interested stakeholders Business Newsletter Articles provided periodically to the Eagan Business Quarterly Articles News and the Chamber of Commerce newsletter informing businesses about the project and about opportunities for participation. Q&As Quarterly Q&As inserted into the City's newsletter Quarterly and business newsletter to update community members and address questions about the redevelopment. City Newsletter Articles regularly featured in the City's newsletter on Quarterly Articles the progress of the redevelopment. Business Coffees Bimonthly coffees with businesses that are in and Ongoing bordering the redevelopment area, and with the Chamber of Commerce. Power Point A summary presentation explaining key information After concept Presentation about the redevelopment including purpose, timing, refinement schedule, expected result, how people can stay informed. Vision Display Boards would include elevations to provide a vision At concept refinement, Boards for the redevelopment, a board with a map of the presentation of entire redevelopment area and a board with the project developer proposal, schedule. These would be displayed in area businesses community events. and other prominent places in the community. Redevelopment Map A map of the impacted redevelopment area with (See Display Boards) proposed land uses. Open Houses Open houses would be held for community members Concept refinement at key points in the redevelopment process to inform, answer questions and receive input. Separate open Preliminary developer houses would be held for residents and businesses in proposal the redevelopment area. Final developer proposal a Cedar (Jr(' Communications Plan Project Chronology A chronology of events and activities leading up to Ongoing and for the duration of the redevelopment. Type Description Frequency News Releases News releases would be provided at critical points in Before each open the redevelopment to ensure the media understands house not only what is happening but can put it into the At developer selection context of the bigger picture. At pre-development agreement At development agreement City of Eaaali Me To: FINANCE COMMITTEE CITY ADMINISTRATOR HEDGES From: COMMUNICATIONS DIRECTOR GARRISON (In consultation with Community Development Director Hohenstein & Administrator Hedges) Date: APRIL 7, 2009 Subject: CEDAR GROVE TIF/COMMUNICATIONS PLAN The original Cedar Grove Communications Plan in November of 2004 (see attached) identified five phases for communications efforts, the likely barriers, key audiences and messages. A subsequent April 7, 2009 memo from Director Garrison (prior to court decision) identified communications opportunities and asked for feedback. Communications Environmental Scan • Mayor Maguire has asked for accelerated proactive communications regarding progress in Cedar Grove • Eagan has selected a master developer and has preliminary concept approvals for the first part of the redevelopment, we do not yet have formal approval of actual plans, nor the first construction by Doran & Pratt. • Some residents don't understand "what is taking so long," while property rights advocates complain we are harming established businesses to help get new business development started • At a time many other cities' development efforts have ground to a halt, Eagan has up to three aspects of Phase I getting ready to move to the next stage of approval. • While understanding market conditions have changes, some residents feel Phase I concepts fall short of what they originally envisioned in the district, particularly with respect to recreational open space, while businesses that are staying in the district can't wait for development to begin. • A court decision that many expected would go the City's way did not on appeal, leaving some people uncertain about Cedar Grove's future despite the message that Phase I construction is not affected by the Court's ruling. It also means the property acquisition phase is not yet complete. • Whereas 2008 communications concentrated on the businesses in the area and those affected by demolition, in 2009 the emphasis must return to communicating (progress) to the general public and homeowners in Cedar Grove. • Mayor Maguire has asked that these communications be much more comprehensive and reach not just the general media, but the financial and real estate press, and be more anticipatory. cqi~ • Gary Hansen i icated that he has heard concerns about density and vertical developme aul Bakken indicated that the Council should weather those concerns because that is what the City has asked for in this area. • While the Council responded to concerns raised about affordable housing in the development on April 7, apparently some group of neighbors has contacted an attorney who has called the City a couple of times to ask about the City's plans relative to the Youth Supportive Housing and other affordability alternatives in the area. • After negative publicity the day of and day after the court decision, reader response comments slowed to only a single new addition by Thursday. Immediate Opportunities: • CDA Ground Breaking on Youth Supportive Housing-June 4 (same day as Showcase Eagan.) • MVTA Transit Station Ground Breaking-June 8, 2004 • Guest column/Op Ed(s)-As needed when Council knows its next step(s). • Breakfast with the Mayor-could ask Ruthe to schedule the next BWM down in the Grove at Jensen's or the Bowling Center to drive home what is happening down there. • Inside Eagan-Taping of Mayor's next TV show in June could target Cedar Grove, or could push to prime time special and take e-mailed questions from public. Upcoming Opportunities • Formal Approvals • Construction ground breakings on apartments, hotel or senior housing • City Newsletter-Three weeks maximum to go before next newsletter, but if City response is known by then, we can emphasize that. If not, we can emphasize existing messaging that Phase I is not affected. • Realignment of Roads in area • Celebrate successes once central gathering space options in the redevelopment are identified and agreed to • Potential improvements to Jensen's Supper Club, Cedarvale Lanes, and district north of Hwy 13 Ongoing Opportunities • Updating the Cedar Grove pages on the City Web site • Consider additional distribution run of Cedar Grove Gateway newsletter-This piece has been quietly very effective at keeping local business owners down in the area informed. Would recommend we also add links to it from the new Eagan Business News Online edition. • E-TV story coverage of opportunities a9 Discussion on DRAFT Key Messages: ? We're moving ahead in Cedar Grove Plans are consistent with our values ? Council committed to revitalizing this important gateway to Eagan ? Essential to get initial market supportable uses into the development to build around. 1) Council not abandoning its interests in new urban village, open spaces, and appropriate retail, but aware of market realities. •3 Council and the Public shared concerns and we are responding to those concerns. A) Finer detail drawings show where sidewalks and trails and connections are in a full urban pedestrian system B) Connections will exist to the nearby Woodhaven Park. C) Discussions continue on retail opportunities; increased traffic with office, market rate apartments, and hotel(s) will aid those discussions. uestions: ¦ What options appeal most to the Committee? ¦ Answers to questions posed in April 7 memo (additional priorities or deliverables, anything else the Council is hearing? Additional suggestions and tactics would be addressed in updated Communications Plan based on discussion.