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12/01/2009 - City Council Regular
AGENDA EAGAN CITY COUNCIL EAGAN MUNICIPAL CENTER BUILDING DECEMBER 1, 2009 6:30 P.M. I. ROLL CALL AND PLEDGE OF ALLEGIANCE 11. ADOPT AGENDA 111. RECOGNITIONS AND PRESENTATIONS IV. CONSENT AGENDA (Consent items are acted on with one motion unless a request is made for an item to be pulled for discussion) f° A. APPROVE MINUTES P la B. PERSONNEL ITEMS P.15 C. APPROVE Check Registers P11 D. AUTHORIZE City Attorney to initiate eminent domain proceedings to acquire property for Fire Safety Center and to acquire the necessary right of way, drainage and utility easements for the extension of Duckwood Drive and the construction of Station Trail f 11 E. APPROVE renewal of Heart Healthy Living Program Agreement for Eagan Community Center. e.1 9 F. APPROVE Resolution authorizing the Chief of Police to be the Delegation of Authority for State Traffic Enforcement Grant Programs e...1) G. APPROVE change in management on the on -sale liquor license at Applebee's Restaurants North LLC, dba Applebee's Neighborhood Grill & Bar located at 1335 Town Centre Drive 11.41H. APPROVE change in management on the off -sale 3.2% malt liquor (beer) license at Speedway SuperAmerica LLC, dba SuperAmerica #4335 located at 1379 Town Centre Drive Pd31. APPROVE renewals of existing liquor licenses for 2010 aP J. DIRECT City Clerk to issue 2010 liquor license renewals upon licensees' submission of renewal documents and fees 19.0si K. APPROVE renewals of existing tobacco licenses for 2010 e 31 L. DIRECT Deputy Clerk to issue 2010 tobacco license renewals upon licensees' submission of renewal documents and fees -P.a.) M. APPROVE renewals of existing tree contractor licenses for 2010 pN. DIRECT Deputy Clerk to issue 2010 tree contractor license renewals upon licensee's submission of renewal documents and fees 1° 31/-0. APPROVE renewals of existing trash hauler licenses for 2010 p35 P. DIRECT Deputy Clerk to issue 2010 trash hauler license renewals upon licensee's submission of renewal documents and fees e31p Q. APPROVE renewals of existing kennel and pet shop licenses for 2010 37R. DIRECT Deputy Clerk to issue 2010 kennel license and pet shop renewals upon licensee's submission of renewal documents and fees P. S. RECIEVE Feasibility Report for Project 1018 (Greensboro — Street Overlay) and schedule a Public Hearing (January 5, 2010) 19. 3/T. RECEIVE Feasibility Report for Project 1022 (Overhill Farm/South Oaks — Street Overlay) and schedule a Public Hearing (January 5, 2010) 4.Q U. RECEIVE Feasibility Report for Project 1026 (Northview Meadows — Street Overlay) and Schedule a Public Hearing (January 5, 2010) .f, t,.l� V. RECEIVE Feasibility Report for Project 1027 (Patrick Road — Street Overlay) and Schedule a Public Hearing (January 5, 2010) 1. 42 W. AUTHORIZE Submittal of Community Development Block Grant Amendment Application 4). t}.Jr-' X. AUTHORIZE Submittal of 2010 Community Development Block Grant Application i 51 Y. APPROVE Resolution to Allocate SAC Units from Demolitions in the Cedar Grove area to new development projects in the Redevelopment District V. PUBLIC HEARINGS -P,S41 A. PROPOSED BUDGET AND PROPERTY TAX LEVY FOR 2010 VI. OLD BUSINESS f? 7 A. RECEIVE BIDS AND AWARD SALE - $8,500,000 General Obligation Recreational Facilities Refunding Bonds, Series 2009B, and Engage Springsted, Inc. to Perform Continuing Disclosure Reporting and Arbitrage Rebate Calculation Requirements for Such Bonds VII. NEW BUSINESS -f: 7 J A. CONDITIONAL USE PERMIT AND KENNEL LICENSE — Wagging Tails Pet Resort - A Conditional Use Permit and kennel license to allow an overnight kennel facility at 3275 Sun Drive. VIII. LEGISLATIVE / INTERGOVERNMENTAL AFFAIRS UPDATE IX. ECONOMIC DEVELOPMENT AUTHORITY f. 9 8 A. CALL TO ORDER B. ADOPT AGENDA C. CONSENT AGENDA 1. APPROVE EDA Minutes D. OLD BUSINESS E. NEW BUSINESS ba 1. CEDAR GROVE REDEVELOPMENT DISTRICT — Ratify amended TIF Development Agreement with Lennar Corporation for the Nicols Ridge Development 15./a° ,I,a(p 2. NORTHEAST EAGAN REDEVELOPMENT DISTRICT — Consider request for Assessment Agreement for certain costs for McGough Development P Gal 3. CEDAR GROVE REDEVELOPMENT DISTRICT - Authorize Submittal of 2010 CDA Redevelopment Incentive Grant for Cedar Grove Redevelopment Project Costs F. OTHER BUSINESS G. ADJOURN X. ADMINISTRATIVE AGENDA A. City Attorney B. City Council Comments C. City Administrator D. Director of Public Works E. Director of Community Development XI. VISITORS TO BE HEARD (for those persons not on agenda) XII. CLOSED SESSION XIII. ADJOURNMENT 41P/ Citi of Eaaali Nemo TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: NOVEMBER 27, 2009 SUBJECT: AGENDA INFORMATION FOR DECEMBER 1, 2009 CITY COUNCIL MEETING ADOPT AGENDA After approval is given to the December 1, 2009 City Council agenda, the following items are in order for consideration. Agenda Information Memo December 1, 2009 Eagan City Council Meeting CONSENT AGENDA The following items referred to as consent items require one (1) motion by the City Council. If the City Council wishes to discuss any of the items in further detail, those items should be removed from the Consent Agenda and placed under Old or New Business unless the discussion required is brief. A. APPROVE MINUTES ACTION TO BE CONSIDERED: To approve the minutes of the November 17, 2009 regular City Council meeting and November 10, 2009 Special City Council meeting as presented or modified. ATTACHMENTS: • Minutes of the November 17, 2009 regular City Council meeting are enclosed on pages 3 through (P . • • utes of the November 10, 2009 Special City Council meeting are enclosed on pages through / / . MINUTES OF A REGULAR MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota November 17, 2009 RAFT A Listening Session was held at 6:00 p.m. prior to the regular City Council meeting. Present were Mayor Maguire, Councilmembers Tilley, Bakken, Hansen and Fields. Iffat Amsal, 4736 White Oak Court, was present to discuss an appeal to a staff decision to deny her request for a permit to construct three columns in City right of way adjacent to her property. Councilmembers and staff explained the City's policy and practice in regard to structures being placed in the right of way. A regular meeting of the Eagan City Council was held on Tuesday, November 17, 2009 at 6:30 p.m. at the Eagan Municipal Center. Present were Mayor Maguire, Councilmembers Tilley, Bakken, Hansen and Fields. Also present were City Administrator Tom Hedges, City Planner Mike Ridley, Public Works Director Tom Colbert, Community Development Director Jon Hohenstein, City Attorney Mike Dougherty and Administrative Secretary / Deputy Clerk Mira Pepper. AGENDA City Administrator Hedges noted that a closed session would be held to discuss pending litigation. Councilmember Fields moved, Councilmember Bakken seconded a motion to approve the agenda as amended. Aye: 5 Nay: 0 RECOGNITIONS Mayor Maguire acknowledged City Administrator Hedges' birthday. CONSENT AGENDA Councilmember Fields moved, Councilmember Bakken seconded a motion to approve the Consent Agenda as presented. Aye: 5 Nay: 0 A. It was recommended to approve the minutes of the November 5, 2009 regular City Council meeting and the October 13, 2009 Special City Council meeting as presented. B. Personnel Items. 1. It was recommended to approve the PERA Related Repetitive Leave Policy and allow identified employees to buy back their PERA benefits should they be approved to work a 36 hour week verses a 40 hour week. C. It was recommended to ratify check registers dated October 29, 2009 and November 5, 2009 as presented. D. It was recommended to accept a donation from Residential Mortgage Group for $200 for purchase of rescue equipment, and approve a budget adjustment increasing revenues and expenditures in the general fund by $200 for the donation and its related expenditure. E. It was recommended to accept a donation from Betty Schofield or $400 for purchase of rescue equipment, and to approve a budget adjustment increasing revenues and expenditures in the General Fund by $400 for the donation and its related expenditure. F. It was recommended to approve a change in management on the off -sale 3.2% malt liquor (beer license for Rainbow Foods located at 1276 Town Centre Drive. G. It was recommended to approve a change in management on the on -sale liquor license for the Green Mill Restaurant located at 1940 Rahncliff Court. H. It was recommended to approve the 2010 -2014 General Facilities Renewal and Replacement CIP and 2010 Budget and to authorize the transfer of all assets in the City Property Special Assessment Debt Service Fund to the General Facilities Renewal and Replacement Fund. I. It was recommended to approve Part II (Vehicles and Equipment) of the 2010 — 2014 Capital Improvement Program (CIP) and 2010 Budget. City Council Minutes November 17, 2009 Page 2 DR/ FT A J. It was recommended to approve a six month extension of time to record the final plat for Cedar Grove Park and Ride, consisting of 9 acres, located at 4035 Nicols Road. K. It was recommended to adopt a Negative Declaration on the need for a Carriage Hills Environmental Impact Statement (EIS) for the former golf course located at 3535 Wescott Woodlands. L. It was recommended to authorize the approval of a Letter of Intent with Harris Mechanical Services to begin Phase I — Feasibility Study and Engineering Design as part of the Department of Energy Geothermal Technologies Program: Ground Source Heat pumps Grant awarded to the Eagan Civic Arena and direct the Mayor to sign the appropriate documents. M. It was recommended to authorize staff to prepare and submit a grant application to the MN Department of Agriculture for a Forest Protection Reserve -Planning and Preparedness Grant and authorize the Director of Parks and Recreation to sign the application documents on behalf of the City. The grant monies are to be used to plan and implement a City program to manage and control the spread of Emerald Ash Bore. The deadline for application is November 20. N. It was recommended to receive the petition to vacate public drainage and utility easements within Northwood Business Park 3`d Addition and schedule a public hearing to be held on December 15, 2009. O. It was recommended to receive the petition to vacate public drainage and utility easements within Lots 11, 12, and 13, Block 3 Oaks of Bridgewater 2nd (3862, 3858, and 3854 Bridgewater Drive) and schedule a public hearing to be held on December 15, 2009. P. It was recommended to approve the final payment for Contract 09-14 (Schwanz Lake — Rain Gardens Improvements) in the amount of $2,880.55 to Earth Wizards, Inc., and accept the improvements for perpetual City maintenance subject to warranty provisions. Q. It was recommended to approve an agreement with the Minnesota Department of Driver and Vehicle Services (DVS) to allow access to certain records and authorize the Mayor and City Clerk to execute all related documents. R. It was recommended to approve an amendment to the Development Agreement providing for the further extension of contract completion dates for Oak Hills Church 2nd Addition (City Project No. 06- N) to June 1, 2009. S. It was recommended to approve the transfer of a Massage Therapy Establishment License for Lisa Myers, The Bodywork Studio, from 3352 Sherman Court #103 to 1570 Century Point. PUBLIC HEARINGS CONSIDERATION OF ADDITIONAL SUSPENSION OF THE OFF -SALE LIQUOR LICENSE OR REVOKE THE OFF -SALE LIQUOR LICENSE FOR BRAR ENTERPRISES, INC. DBA BLACKHAWK LIQUOR AND WINE City Administrator Hedges introduced this item regarding consideration of imposing additional penalties on Blackhawk Liquor as a result of four alcohol sales violations within a 36 month period. He noted that the civil penalty has been paid and the 30 -day suspension of the liquor license ends tonight at midnight. The specific violations were described. Jess Brar, the licensee for Blackhawk Liquor, discussed the history of his business, which included the sale and repossession of the business, and a plan of action for the future of the business. Councilmembers held a discussion in regard to the specific violations. Councilmembers Tilley and Fields noted that due to the violations for the sale of alcohol to minors, they would be in favor of revocation of Mr. Brar's liquor license. Councilmembers Hansen, Bakken, and Mayor Maguire noted that while they agree with Councilmembers Fields and Tilley in regard to the severity of the violation to sell alcohol to a minor, they would be in favor of giving Mr. Brar the chance to put his plan of action in to effect with the stipulation that another violation would result in the revocation of his license. 09-31 City Council Minutes November 17, 2009 Page 3 DRAFT T Mayor Maguire moved, Councilmember Bakken seconded a motion to impose no additional penalties upon the licensee of Blackhawk Liquor. Aye: 3 Nay: 2 Tilley and Fields opposed. PROJECT 964, YANKEE DOODLE ROAD / YANKEE DRIVE STREET OVERLAY IMPROVEMETNS FINAL ASSESSMENT HEARING City Administrator Hedges introduced this item regarding the Final Assessment Roll for Project 964, Yankee Doodle Road / Yankee Drive street improvements. Public Works Director Colbert gave a staff report. Mayor Maguire opened the public hearing. There being no public comment, he turned discussion to the Council. Councilmember Fields moved, Councilmember Hansen seconded a motion to close the public hearing and approve the Final Assessment Roll for Project 964 (Yankee Doodle Road / Yankee Drive — Street Improvements) and authorize its certification to Dakota County for collection. Aye: 5 Nay: 0 PROJECT 981, RAHNCLIFF ROAD / CLIFF LAKE ROAD / RAHN ROAD STREET OVERLAY / LANDSCAPE MEDIAN IMPROVEMENTS FINAL ASSESSMENT HEARING City Administrator Hedges introduced this item regarding the Final Assessment Roll for Project 981, Rahncliff Road / Cliff Lake Road / Rahn Road street overlay, landscape median improvements. Public Works Director Colbert gave a staff report. He discussed the gross area method for spreading assessment for street and landscape median improvements and noted that the property owner at 1965 Cliff Lake Road is objecting to that method. He further noted that the gross area method was also recently applied for similar projects — Project 972 and Project 978. He stated that upon subsequent research and investigation by staff, it was determined that the Special Assessment Policy does provide credit for dedicated ponding easements when calculating and allocating special assessments on an area basis. Mr. Colbert recommended that new Supplemental Assessment hearings be considered for Projects 972 and 978 to allow the proportionate reallocation of the related assessments credits to the remaining parcels within each respective project and that a new Final Assessment Hearing be scheduled for a revised Final Assessment Roll for the commercial properties in Project 981. Mayor Maguire opened the public hearing. A representative of Cliff Lake Marketplace noted that their concerns had been addressed with staffs presentation comments. There being no further comment, Mayor Maguire turned discussion back to the Council. Councilmembers held a brief discussion. Councilmember Hansen moved, Councilmember Tilley seconded a motion to close the public hearing and approve the Final Assessment Roll for Project 981 (Rahncliff Road / Cliff Lake Road / Rahn Road — Street Improvements) fort he Residential and Public Facilities properties only, authorizing its certification to Daktoa County for collection and, direct the preparation of a revised Final Assessment Roll for Project 981 for the remaining commercial properties and schedule a new Final Assessment Hearing to be held on December 15, 2009. Aye: 5 Nay: 0 Councilmember Bakken moved, Councilmember Hansen seconded a motion to direct a Supplemental Assessment Hearing to be held on December 15, 2009 for Project 972 (Lone Oak / Waters Area) and Project 978 (Eagandale LeMay Lake). Aye: 5 Nay: 0 City Council Minutes November 17, 2009 Page 4 OLD BUSINESS DR4F7 DELINQUENT UTILITY BILL CERTIFICATION — PID 10-627525-006-02 / ACCOUNT 0012020684 City Administrator Hedges introduced this item regarding the certification of a utility bill that was discussed at the November 5 City Council meeting where staff was directed to meet with the various property owners to attempt to facilitate a solution to the use of one City water meter for a number of businesses. Administrative Services Director VanOverbeke discussed the meeting. It was noted that payment of the utility bill has been made. Discussed the penalties being imposed due to the delinquent utility bill. Mayor Maguire moved, Councilmember Fields seconded a motion to waive the penalties for account 0012026084. Aye: 5 Nay: 0 NEW BUSINESS ORDINANCE AMENDMENT, CHAPTER 5 BEER, WINE AND LIQUOR LICENSING AND REGULATION IN REGARD TO LIQUOR VIOLATIONS AND CIVIL PENALTIES City Administrator Hedges discussed this item regarding an ordinance amendment relating to liquor violations and civil penalties. Councilmember Fields moved, Councilmember Tilley seconded a motion to approve an ordinance amendment to Chapter 5, specifically as it relates to liquor violations and civil penalties and direct the City Attorney to publish the amendment in the legal newspaper. Aye: 5 Nay: 0 LEGISLATIVE / INTERGOVERNMENTAL AFFAIRS UPDATE City Administrator Hedges discussed a meeting held on November 12 with Senator Al Franken. The regular City Council meeting was recessed at 8:45 p.m. to immediately convene a meeting of the Economic Development Authority. The regular City Council meeting was reconvened at 8:50 p.m. ADMINISTRATIVE AGENDA There were no items requiring action. VISITORS TO BE HEARD There were no visitors who wished to be heard. ADJOURNMENT Councilmember Fields moved, Councilmember Tilley seconded a motion to adjourn the meeting at 8:55 p.m. Aye: 5 Nay: 0 Date Administrative Secretary / Deputy Clerk MINUTES SPECIAL CITY COUNCIL MEETING TUESDAY, NOVEMBER 10, 2009 5:30 P.M. EAGAN ROOM — EAGAN MUNICIPAL CENTER City Council members present: Mayor Maguire, Councilmembers Bakken, Fields, Hansen and Tilley. City staff present: City Administrator Hedges, Assistant to the City Administrator Miller, Director of Administrative Services VanOverbeke, Community Development Director Hohenstein, City Planner Ridley, Communications Director Garrison, Parks and Recreation Director Seydell Johnson, Public Works Director Colbert, Government TV Coordinator Elbon, Superintendent of Parks Olson, Planner Dudziak, Planner Thomas and Superintendent of Utilities Schwanz. I. ROLL CALL AND AGENDA ADOPTION Councilmember Fields moved, Councilmember Tilley seconded a motion to approve the agenda as presented. Aye: 5; Nay: 0 II. VISITORS TO BE HEARD There were no visitors to be heard. III. JOINT MEETING WITH THE ADVISORY PLANNING COMMISSION (APC) Mayor Maguire welcomed members of the APC. City Administrator Hedges noted the City Council's practice of meeting with each of their Advisory Commissions at least one time each year. APC Chair Chavez and members of the APC introduced one another. Mayor Maguire thanked the APC for their service. IV. EMBRACE OPEN SPACE PRESENTATION Mayor Maguire introduced Mark Schiffman of Embrace Open Space, who provided a presentation on the research done on the financial impact of open space. Mr. Schiffman also presented information on the work being done by Embrace Open Space in the Twin Cities area. The City Council and members of the Planning Commission discussed the presentations and findings with Mr. Schiffman. Mayor Maguire noted members of the Advisory Parks and Recreation Commission also in the audience. Mayor Maguire thanked Mr. Schiffman for his presentation. 7 Special City Council Minutes November 10, 2009 Page 2 V. STATEWIDE BROADBAND REPORT BY RICK KING City Administrator Hedges introduced the item noting that in April of 2008, legislation was signed into law creating a Minnesota Ultra High Speed Broadband Task Force to make recommendations of where the state ought to be on the level of broadband speed and connection speed by the year 2015. Hedges noted that Rick King, Chair of the Minnesota Ultra High Speed Broadband Task Force and Executive Vice President and Chief Operating Officer of Thomson Reuters North American Legal, was present to provide a report to the City Council regarding the task force's recommendations. Mayor Maguire welcomed Mr. King and five members of the Eagan Technology Task Force, who were in the audience. The City Council and APC viewed a video prepared by a partnership with cities in Dakota County and the County itself regarding the need for next generation broadband in Dakota County. Mr. King provided a report on the recommendations of the State Ultra High Speed Broadband Task Force. The City Council and APC discussed the presentation and the Task Force's report. VI. UPDATE FROM BROADBAND CONSULTANT ANDREW COHILL City Administrator Hedges introduced the item, noting the Council's goal with regard to high speed fiber optic broadband. Mr. Andrew Cohill, consultant from Design Nine, summarized his general findings and recommendations to the City. Mr. Cohill noted his two final recommendations included 1.) consider using City fiber to create a business class network for commercial and retail use in Eagan; and, 2.) work with the local business community to build a modest co -location facility to support the fiber network and as a redundant data center for Eagan businesses and others needing off-site data storage. The City Council discussed Mr. Cohill's recommendation and findings. Mr. Cohill noted that the stimulus funding available through the Federal government appears to be favoring rural communities and, thus, Eagan is not likely to qualify for the funding. There was City Council consensus that the two recommendations have merit and, thus, Council directed staff to develop detailed cost estimates and planning documents to assist the Council in making decisions to approve investment in one or both recommended options. The City Council recessed at 7:45 p.m. The City Council reconvened at 7:55 p.m. Special City Council Minutes November 10, 2009 Page 3 VII. CEDAR AVENUE TRANSPORTATION AND TRANSIT UPDATE A. MNDOT Presentation on TH 77 Managed Lanes Corridor Study City Administrator Hedges introduced the item noting that MnDOT, in cooperation with other governmental agencies, is exploring feasible alternatives to maximize and/or temporarily reallocate available lane capacities in the Highway 77 corridor (Cedar Freeway) from McAndrews Road (County road 38) in Apple Valley to I-494 in Bloomington. Hedges added there currently exists a disproportionate volume distribution between northbound and southbound directional travel in the morning and evening rush hours resulting in significant congestion points at County Road 38 in Apple Valley and TH13 in Eagan in the morning commute. Public Works Director Colbert introduced representatives from MnDOT and SEH Consulting, who summarized a comprehensive study of a "Contra Flow Concept", which incorporates a movable barrier as well as combinations and variations of High Occupancy Vehicle, Bus Rapid Transit, and Paying Single Occupant Vehicle (toll) dedicated lane techniques as the guiding principles. Mr. Colbert noted that a public open house is scheduled to be held at Dakota County on November 19, and MnDOT is providing advance presentations to the three affected cities and Dakota County. The representatives of MnDOT and SEH provided a presentation to the Council regarding the TH 77 Managed Lanes Corridor Study. The City Council discussed the study. The Council thanked the MnDOT and SEH representatives for the advanced presentation prior to the November 19 open house. B. Dakota County Presentation on Cedar Avenue Transit Corridor City Administrator Hedges introduced the item noting that the County is completing the Cedar Corridor implementation plan and County staff has asked for the opportunity to provide a brief overview of the infrastructure and service plans as they are defined at this time. Hedges added that this item is being presented along with the TH 77 Managed Lane Corridor Study because decisions of certain improvements in each case have the potential to affect the other. Sam O'Connell of Dakota County provided a presentation on the Cedar Corridor Implementation Plan. The City Council discussed the Implementation Plan and thanked Ms. O'Connell for her presentation. VIII. I&I COMMUNICATION PROGRAM/PUBLIC MESSAGING Mayor Maguire amended the agenda to consider the I&I item prior to the discussion regarding the proposed Advisory Commissions. City Administrator Hedges introduced the item noting that the City Council approved an ordinance amendment on September 1, 2009 9 Special City Council Minutes November 10, 2009 Page 4 authorizing a Sump Pump Inspection Program with corrective enforcement actions. Hedges added that the Council asked to discuss whether the City should provide any financial assistance or grants to cover any or all of the private corrective costs, and whether the City should inspect all 19,000 connections or only as many as necessary to remove the City as an "Excessive Flow" community on the MCES Surcharge Program. Public Works Director Colbert provided additional background on the proposed I&I Sump Pump program. The City Council viewed a first generation video that will be available to the public explaining the I&I Sump Pump Program. Director Colbert and Director of Administrative Services VanOverbeke summarized the financial impact analysis for the I&I Sump Pump and Service Lateral Inspection Program. Al Ranken, consultant from SEH, was present at the meeting and also commented on the financial analysis. The City Council discussed what role the City should have in the financial assistance for the I&I Program. There was City Council consensus that if a property owner objects to the improvements, then there will be no City cost participation. There was also Council consensus that if a property owner cooperates with the City, then the City should assist with some of the costs. Councilmember Tilley left the meeting at 10:00 p.m. The Council concurred that financing for homeowners should be subject to the homeowners signing a waiver of hearing by accepting the financial assistance from the City. There was Council consensus that there would be no deductible or City participation for commercial properties. The Council authorized staff to proceed with the pilot I&I Sump Pump and Service Lateral Inspection Program utilizing the base scenario financing plan as presented, with the opportunity to evaluate the financing plan after the pilot program has been completed. The Council suggested an interest rate of 4% to finance the improvements. The Council also authorized the corresponding inspection program communication plan. IX. DISCUSS PROPOSED ADVISORY COMMISSIONS/TASK FORCES (CIVIC ENGAGEMENT AND ENERGY & ENVIRONMENT) City Administrator Hedges introduced the item noting that as part of the 2009 Goals Retreat, the Council discussed their interest in dialoguing further about the formation of task forces or advisory commissions to address the issues of civic engagement and energy and environment. Hedges presented proposed structures that had been prepared for both of the potential commissions/task forces. Special City Council Minutes November 10, 2009 Page 5 The City Council discussed the formation of two committees or commissions, and suggested that the topic of Energy & Environment would be well suited as a Commission, while Civic Engagement would be better served as a committee or task force. The Council directed that in light of budget issues and necessary staff support, the formation of such commissions/ committees should be reevaluated in the spring of 2010. The Council also requested that the two proposed commission/committee structures be refined and brought back for Council consideration in early 2010. There was no other business. X. OTHER BUSINESS XI. ADJOURNMENT Councilmember Fields moved, Councilmember Bakken seconded a motion to adjourn the meeting at 10:47 p.m. Aye: 4; Nay: 0 1/ Agenda Information Memo December 1, 2009 Eagan City Council Meeting B. PERSONNEL ITEMS Item 1. Part-time Seasonal Program Asst/Winter Rec Leader -- ACTION TO BE CONSIDERED: To approve the hiring of Michael Hemmingson as a part-time seasonal program assistant/winter recreation leader. Agenda Information Memo December 1, 2009 Eagan City Council Meeting C. RATIFY CHECK REGISTERS ACTION TO BE CONSIDERED: To ratify the check registers dated November 12, 2009, November 19, 2009 and November 25, 2009 as presented. ATTACHMENTS: • Check registers dated November 12, 2009, November 19, 2009 and November 25, 2009 are enclosed without page number. l3 Agenda Memo Eagan City Council December 1, 2009 CONSENT AGENDA: D. AUTHORIZE CITY ATTORNEY TO INITIATE EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY FOR THE FIRE SAFETY CENTER AND RIGHT-OF-WAY, DRAINAGE AND UTILITY EASEMENTS FOR THE EXTENSION OF DUCKWOOD DRIVE AND STATION TRAIL. ACTION TO BE CONSIDERED: Authorize City Attorney to initiate eminent domain proceedings to acquire property for the Fire Safety Center and right-of-way, drainage and utility easements for the extension of Duckwood Drive and Station Trail. FACTS D. A previous fire station study identified the need to relocate the Eagan Fire Station Two to a location near the intersection of Yankee Doodle and Lexington Avenue. ➢ Staff identified the former Carriage Hills Golf Course as an appropriate site. ➢ The City and the property owner, Rahn Family Limited Partnership, entered into a Purchase Agreement to acquire four acres for the Fire Safety Center. ➢ The Council approved the Purchase Agreement at its July 7, 2009 meeting. ➢ Under the terms of the Agreement, the Seller was required to convey the property for the fire station, and also the necessary right-of-way, drainage and utility easements for the extension of Duckwood Drive as well as the right-of-way to service the new fire station. D. One contingency under the Agreement required the Seller to obtain a release of mortgage from its lender. Due to complications, the Seller has not been able to secure a release of the mortgage to allow for the closing. ➢ In order to keep the construction of the fire station on track, it is necessary for the Council to consider the use of eminent domain, including the use of quick -take, to acquire the fire station property as well as the necessary, right-of-way, drainage and utility easements for the extension of Duckwood Drive and construction of the right-of-way to service the new Fire Safety Center. ATTACHMENTS: Resolution Authorizing Use of Eminent Domain to Acquire Property for the Construction of a Fire Safety Center, the Extension of Duckwood Drive and the Construction of Station Trail is attached as pages 15 through, (0 . 1� EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF EAGAN, DAKOTA COUNTY, MINNESOTA A regular meeting of the City Council of the City of Eagan, Dakota County, Minnesota, was duly held at the Eagan Municipal Center located at 3830 Pilot Knob Road, in said City on December 1, 2009, at 6:30 p.m. The following members were present: Maguire, Bakken, Hansen, Fields and Tilley; and the following were absent: none. * * * Member introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING USE OF EMINENT DOMAIN TO ACQUIRE PROPERTY FOR THE CONSTRUCTION OF A FIRE SAFETY CENTER, THE EXTENSION OF DUCKWOOD DRIVE AND THE CONSTRUCTION OF STATION TRAIL WHEREAS, a fire station study has identified the need to relocate Eagan Fire Station Two to a location near the intersection of Yankee Doodle Road and Lexington Avenue; and WHEREAS, the City has previously identified a four -acre site located on the former Carriage Hills Golf Course property as appropriate for the construction of the new Fire Safety Center; and WHEREAS, the City has previously approved a Purchase Agreement with the Seller to acquire the property for the Fire Safety Center as well as the necessary right-of-way, drainage and utility easements for the extension of Duckwood Drive and the construction of Station Trail. The Seller has been unable to secure the consent of its lender to complete the closing; and WHEREAS, in order to complete the construction of the Fire Safety Center in a timely fashion, it is necessary for the City to authorize the use of eminent domain to acquire the property as well as the right-of-way, drainage and utility easements. NOW, THEREFORE, BE IT RESOLVED that the City Attorney is hereby authorized to use eminent domain, including the use of "quick -take," to acquire the four -acres for the construction of the Fire Safety Center as well as the necessary right-of-way, drainage and utility easements for the extension of Duckwood Drive and construction of Station Trail. IS ADOPTED this day of , 2009. Mike Maguire ATTEST: Maria Petersen, City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor: Maguire, Bakken, Hansen, Fields and Tilley; and the following voted against the same: none. 2 lio Agenda Memo December 1, 2009 City Council Meeting E: APPROVE Renewal of Heart Healthy Living Program Agreement for Eagan Community Center. ACTION TO BE CONSIDERED: To approve the renewal of a contract with Heart Healthy Living, P.A. to provide cardiac rehabilitation maintenance program services at the Eagan Community Center during 2010 and direct the Mayor and City Clerk to sign the agreement document. FACTS: • Heart Healthy Living, P.A. (HHL) is an independent contract service that offers Phase III/IV Cardiac Rehabilitation Maintenance Program services. • HHL wishes to continue their contract with some modifications for the use of the Eagan Community Center's exercise studio, walking track, exercise equipment, conference room and locker rooms two days a week from 11:00 a.m. - 12:15 p.m. for HHL clients and staff. • HHL's current agreement pays the City 20% of all revenue gained by client program participation fees, which is confirmed by monthly attendance sheets. • HHL would like to modify the agreement to include the provision for existing participants to become members of the ECC. The membership proposed would allow access to the ECC during non -peak hours that would coincide with the hours the program currently operates and would be a reduced monthly rate. • The change in how this program operates will provide an avenue for Phase III/ IV Cardiac Rehab patients to increase their exercise regime and many of them would then be eligible for health insurance reimbursement programs. • Patients requiring more direct supervision will remain under the umbrella of the more traditional HHL program until they are able to be released to less supervised activity. • Participants new to HHL would fall under a different fee structure and the ECC would receive 20% of all revenue gained by these new clients until the program releases them to become more active through an ECC membership. 17 • HHL will still provide general liability insurance at $1,000,000 per occurrence and $1,000,000 per year as well and Professional Liability at $1,000 per occurrence and $1,000,000 per year. • This has been a very positive and successful partnership that began in 2004 and continues to provide a positive benefit to the participants and ECC. ISSUES: • None foo Consent Agenda Information Memo December 1, 2009, Eagan City Council Meeting CONSENT AGENDA: F. Resolution authorizing the Chief of Police to approve traffic enforcement grants through the State of Minnesota ACTION TO BE CONSIDERED: Approve a resolution authorizing the Chief of Police to execute grant contracts (for traffic enforcement purposes) with the State of Minnesota. FACTS: • The State of Minnesota (through the State Patrol) provides grant opportunities to local governments • The State Patrol is the fiscal agent • The State Patrol routinely asks the Eagan Police Department to participate in grant funded initiatives for traffic enforcement/education purposes • Previously, the City has been involved in Operation Night Cap, Safe & Sober, Highway Enforcement of Aggressive Traffic (HEAT), and a motorcycle enforcement task force • The grant awards, pay 100% of the City's personnel costs ATTACHMENTS: Proposed Resolution on page a6 . CITY OF EAGAN COUNTY OF DAKOTA STATE OF MINNESOTA RESOLUTION OF AUTHORIZATION IN SUPPORT OF THE MINNESOTA STATE PATROL TRAFFIC ENFORCEMENT GRANT PROGRAMS WHEREAS, the State of Minnesota, through the Minnesota State Patrol, administers a variety of grant programs that are available to local units of government for law enforcement purposes; and WHEREAS, the City of Eagan has historically successfully applied for and received grant reimbursement monies for the following programs: Safe & Sober, Operation Night Cap, Highway Enforcement of Aggressive Traffic (HEAT), and Motorcycle Task Force; and WHEREAS, the State will allow participation in the above grant opportunities through council resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EAGAN, That it accepts the grants for Safe & Sober, Operation Night Cap, HEAT and Motorcycle Task Force through the State of Minnesota: 1. James S. McDonald, Chief of Police, is hereby authorized and directed to execute and file applications with the State of Minnesota and to provide all information and documentation required to become eligible for possible funding assistance. 2. That the Chief of Police, James S. McDonald, has signatory authority to enter into agreements with the State of Minnesota. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF EAGAN THIS 1ST DAY OF DECEMBER, 2009. Mike Maguire, Mayor ATTEST: Maria Peterson, City Clerk Agenda Information Memo December 1, 2009, Eagan City Council Meeting G. APPROVE CHANGE IN MANAGEMENT ON THE ON -SALE LIQUOR LICENSE AT APPLEBEE'S RESTAURANTS NORTH LLC, DBA APPLEBEE'S NEIGHBORHOOD GRILL & BAR LOCATED AT 1335 TOWN CENTRE DRIVE ACTION TO BE CONSIDERED: To approve a change in management on the on -sale liquor license for Applebee's Neighborhood Grill & Bar located at 1335 Town Centre Drive. FACTS: ➢ A change in management has occurred at the above referenced location. The new manager of Applebee's, James Ritchie, has completed the necessary forms and paid the appropriate investigation fee. ➢ The Eagan Police Department has conducted an investigation of the new manager and finds no reason for denial. ATTACHMENTS (0): Agenda Information Memo December 1, 2009, Eagan City Council Meeting H. APPROVE CHANGE IN MANAGEMENT ON THE OFF -SALE 3.2% MALT LIQUOR (BEER) LICENSE AT SPEEDWAY SUPERAMERICA LLC, DBA SUPERAMERICA #4335 LOCATED AT 1379 TOWN CENTRE DRIVE ACTION TO BE CONSIDERED: To approve a change in management on the off -sale 3.2% malt liquor (beer) license for SuperAmerica #4335 located at 1379 Town Centre Drive. FACTS: ➢ A change in management has occurred at the above referenced location. The new manager of SuperAmerica #4335, Wanda Elton, has completed the necessary forms and paid the appropriate investigation fee. ➢ The Eagan Police Department has conducted an investigation of the new manager and finds no reason for denial. ATTACHMENTS (0): Agenda Information Memo December 1, 2009, Eagan City Council Meeting I. APPROVE RENEWALS OF EXISTING LIQUOR LICENSES FOR 2010 ACTION TO BE CONSIDERED: To approve the renewals of existing liquor licenses for 2010. FACTS: ➢ The breakdown of the liquor license renewals for the year 2010 are anticipated to be as follows: (18) off -sale liquor (30) on -sale liquor (28 restaurants and 2 hotels) (6) on -sale wine and beer (8) on -sale beer (13) off -sale beer (1) brew pub off -sale malt liquor (1) sports/convention facility ➢ The attached list includes those establishments who have submitted a complete renewal package. The remainder of the license renewals will be approved by the City Clerk, as authorized by the City Council, when a completed renewal package is submitted. ➢ Updates on licenses ready for approval will be submitted to Council as Additional Information on Monday. ATTACHMENTS (1): Liquor license renewals on pagesaq- through-. �3 N ca C d ccc w O o m m - o to 9 0• o 0 0 N N O NN N CC COa t000Z • rnoLO DBA Name 3615 Pilot Knob Road 3145 Dodd Road N O 0 O M > co c 0 0 o > 3 O N Y t Q 17 C Ym=0000CO 0 5'cnc3 0 CO CO o= O cOW>-I-UH 00O000CAOO CoMOOF-OCO O N M N M� _M M 4t It O) N ►C) Nr 0 N co co CO coOr-MTr N N 0 0 coNo o o o c c c c u)v)oo ��0000 0 0��.0-( E E E E O O >,>,�N VQQQQ N N H% N N N 4) .0. P -Ne E Q. a 0. 0_ 77T3-5§00:17777 0 0 2 2 Y d U) U) U) U) U) dz Z d � d Q ma J U) 0 0 0 0 J J J J J J J J C C 0 CO CO 0 'C 'C U a)a)a)a) • 2 2 -cEEEE c 0 o uS QQQQ J c c o c Q a Q Q N -J O O U— 7 7 7 7 0 co :_. '++ C U) +h. U) U) U) U) +-' O CO CO N A >, >+ >, co O U) U) C2 O co N N al N a) C001-��avvv2 w=IYav)U)U)U)U) CO co co To On -Sale Beer Licenses License Address DBA Name 1960 Cliff Lake Road 1466 Yankee Doodle Road 2139 Cliff Road (00 N cc a) N N 0 aas mNN aoa C O >0) c co 0 N O.0 02a Pizza Hut #401023 2010 On -Sale Wine & Beer Licenses License Address v N 0 .> 0 O 0 c �U c }o coOM 1260 Town Centre Drive >, C+' � Q NN N 0 co a)a0 0) cn otS Z c au'i 0 Q 'e O 041 N O CI0ZU) Colorado, Inc. O 0 U 0 0. d t0J a) . O E al CjN E 0 L C Z C vi 7 N Z 0 U If) N O 7 N .� C N C C N as N tNn ~ 0 0 = N 0 s 0> = a) Z a) s" >, 0+'0E J002aU) JLiHU) ay 2010 Off -Sale Liquor Licenses >, o 0 a) , 0 OO N 7 co O N O O (r) co O co Z50.` a)Az: V a) al c j CL a) r > N U) 0 0 J "O 0 N 5 o HQ �-d°,) w coo 00 < •`a °OUcO cm o 0 c a) CU 0 c a) a) O E.— _ O .— 0) 0 a) MJUH•-0- C.)a›-JOU 0 O 0 0) N. M 0 CO d" LO c0 0 LC) 0 00 to 0) CO 0) •- d' N- CO CO • N0)NNN00d'N00 J M 1- LO N MA- N- N- CO e - DBA Name 1 2 0 C u) a) U N c 0. U c 0 J co0) C J LL W co U N 3 C'0.` c N W O 0 — a) V • c as 0 J N 0 U c ts @ a) O J rn O N c O C m A N Q N c J C= O r1.8 C N p 0 Ire m 0 i w W O= 9) c Q N 1C C) E to ,"UO N >, co N—) D co N N.O.. _IQi—cnmm2000)22u) 2010 On -Sale Liquor Licenses License Address 1335 Town Centre Drive 3_ m Y O U C`p -0 2 ce 10 U Lo 0~ 0 =a a)>0 ix a 0cc00 0 0 0_0--0 0_0 0 v ,ore cw 0 0 c c E ,- NY.cw NY C E O U 2 p c Q c- O aUacnU>-dxa O M O CO O lA 't CO 03 N N CO N M a) NCO 0 CO .- �� M to N CO Nt M V N M 1- 1- N m T=" ` o - O CO O o O v) rn rn.5 a) c c a) z J . • u)_ U) Z co .0 2 - ta O CO 0. 3 N L Cl < m U U Licensee Name Chili's Grill & Bar C O C Co 0) � m ca N06W cc o c co (0 0 LL n N Z'a) N U N N O N (-9 Q_ O c C O O J O UDWo2 1288 Promenade Place co co 0) 0) a) a) .> U Co 0 ,Co o 2 c N 0 Q as c c >+ aa) 3 N N 3 3 WcnHm O O N 0 In e- CO O Cr) M M (NI N- C) rt Grill & Bar a) 0 a) aU N (70 O 0 0) N i2O 0) 0 c U C V CL " U U N (1) u) -_p 2 O > cU co c 0) — (0 JW cJ EO L O N c 0 ce 0. `O tU Cj C Z 0 0 c c 0) O c +� — 0 +. �_ c c C 0) N . U C U fo N a Co 0 a)0 cu C 7 0 m • c 0 J ,._ v W o U u) ` J N o 'p N cpV '0 cc Vi O a) i N fo N uS co O O O cmU rn� o i, cY --C7s a) c O U o m a)) i_ -t N 5 co ` 'G ` 0 o N J C d 0 C.) . � N Q S 0 U O +.. O c U) Can N --) I- c W 0 Co in m Q a0 N co CC O= a) 2 0 t N p O > co Q m U U W U U U U' m> W-) J> J 2010 Brewpub Off -Sale Malt Liquor License License Address DBA Name 3330 Pilot Knob Road Granite City Food & Brewery U c u) c O a 0 c co cv co E Z N a) d c v N J C� Agenda Information Memo December 1, 2009, Eagan City Council Meeting J. DIRECT CITY CLERK TO ISSUE 2010 LIQUOR LICENSE RENEWALS UPON LICENSEES' SUBMISSION OF RENEWAL DOCUMENTS AND FEES ACTION TO BE CONSIDERED: To direct the City Clerk to issue 2010 liquor license renewals upon licensees' submission of renewal documents and fees. FACTS: ➢ In an effort to streamline the year-end license renewal process and to ensure the issuance of as many license renewals as possible prior to the December 31, 2009 expiration date, a new process has been instituted this year per the direction of the City Attorney's office. ➢ All completed liquor license renewals will be placed on the Consent Agenda as one action item for approval by City Council at one Council meeting. All incomplete renewals will be identified as another agenda item. With regard to the incomplete renewals, Council will be asked to direct the City Clerk to issue the respective licenses upon the licensees' submission of renewal documents and fees and successful review by the Police Department. ➢ All documentation and fees must be submitted to the City Clerk's office by 4:30 p.m. on December 31, 2009 at which time the City Clerk's authority to issue 2010 license renewals will cease. If a renewal application is incomplete in any way, the 2009 license will expire as of 12:01 a.m. on January 1, 2010 and the establishment will be unable to sell alcohol until a new application is submitted, the applicable fees are paid and Council approval has occurred. For some licenses, final approval by the state of Minnesota will also be necessary. ➢ On November 18, 2009, the City Clerk sent a reminder notice to those licensees whose renewal applications were not received by the November 10 deadline or were incomplete. An additional reminder notice will be sent following Council action on December 1 informing the licensees that all renewal information and fees must be submitted prior to December 31 at 4:30 p.m.; otherwise, the 2009 license will lapse as of 12:01 a.m. on January 1, 2010. ➢ The attached list identifies those liquor licensees that have either submitted an incomplete renewal package or have not submitted anything to date. Updates on licenses ready for approval will be provided to Council as Additional Information on Monday. ATTACHMENTS (1): List of incomplete liquor license renewals on pagesa7 throughgE. ate No Liquor Liability & Work Comp Insurance Certificates or Dates &dor Licensee Name Not Correct ma) a) a) mm O O to 0L 45 0 6.cozC >>C a) a) a) J J> J m m m a) a) a) a) o a) a) 0U)v)v)v)cnv)v) , c c c c c 4 c 1-0000000 License Address DBA Name Licensee Name 1940 Rahncliff Court Green Mill Restaurant & Bar 1989 Silver Bell Road 1438 Yankee Doodle Road C a% Via) = C = U (� .0 06 =m C1 O N •+.. C 0 4- '0 C al N0�0i 0 a) mY fa. 43 3 = c c >o - oCo =_1aCC> U c C 7 ,C L co c U CC Ch N o 6 N w c U Q 4. 7 N 2 Ci O 20 13 CD 0 3 J C CO O C C .0 J W Li O > +� Y U to 2 O «3 7 N m N O2 -,0a X5 )C No Liquor Liability Insurance Certificates or Dates &/or Licensee Name Not Correct c No w w m 4='N i_ i_ N i i_ i. N c= O C O O C O O O O C O Ca N = a) 3 34 7 7 7 7 N= Ca 6 V cr CS OiS ZT is iS V CS J 0 J J:_—_-1 J J J J J J J J w U a) a) a) a) a) a) a) y- a) d (%) mUU 05 dCOODU)U dU �Q-N �c 4., �c c c c >.c Hcnu 0 1-00 m 1-0000 HO 0 >.U co G _ Z a) a) (Q Z To c) "0 0 4k d N O ` E N N O CD �- O 0o CC co Co "O a 3 "0tA00 ao c N N V CD CNI CO CO r E J N M N CO 0 O LL O R N I— S 0co N !E cis t N d U ru c Z _ c N c = 0 _' a1- O in = Ea N U 0 c a) �C o u)Q O X _ 4N N a) u)2 S S E O as Ucuc o O c= O cg !Si u) >,U Zm a) •— -' O m — (n -) Of LYEce G¢ J 1 o 0 0 z cJ — J Q) N C C C U C 3 N fl. J y m c E o Urn CC U U a) UJ d 0 U O d „_E C 7 - c Z License Address DBA Name Licensee Name 14201 Nicollet Avenue, Burnsville Holiday Inn Burnsville Burnsville Development Ltd. 4182 Pilot Knob Road MGM Wine & Spirits K & J Liquors, LLC Missing Work Comp Insurance Certificate or Dates &/or Licensee Name Not Correct License Address DBA Name Licensee Name 1 Additional Fees Owed License Address 1555 Cliff Road C c a) U) O d C 0 dEt c 2 as mN—U 0 N J C (p O 1 05 C ;F a) 1- V d �+ N to O —) .e JWYti) 2 :i co a`7 0) 05 l(J d 7 7 7 7 7 7 7 C j a) O 7 (.1 CT Cr O- Cr C CT � � C" J J J J J J J> J CO J CD a) a) a) a) a) a) a) a) m a) O N CO CO CO CO CO CO N (0 N CO gt4C C C I-00000000000 License Address DBA Name Al Baker's Restaurant a) a) (a (a a) 2 E (d Z C 1 dm c c v N J U' 1629 Lena Court C (o C) (0 W O 2- a iii N (0 m o m ors � ((0 -10 fiEI t a) o C�mc12 c 2 �ocn c+, g a) rn� (o N� c o =,r a) m = o c ` °5 O O c U - a) Cr N— CO I N a co CmJ N a) j a coO 3 �3� c a) cm(0oa)om`m2.E Qmm0Oo OF - Ansari Brothers Inc. U 0 c • J c J C co N N U Y CU w U C (0 c ..--.Lflbi CO c LL O N fU EO a) N CO C (0 EL 00O< oo2 c c m 1Y 32 (505 1 (n a) 0 0wm = _1 .c. co a., m : CU Com 67) f° E OOm1-QYDd51— a8 Agenda Memo RegularCity Council Meeting December 1, 2009 CONSENT AGENDA: K . Renewal of existing Tobacco Licenses for 2010 ACTION TO BE CONSIDERED: Approve renewal of existing tobacco licenses for 2010 as listed below. FACTS: • The following have submitted tobacco license renewal applications for 2010, paid appropriate fees, met all requirements of the City Code, and are in order for approval: o Amber Liquor, 4250 Lexington Ave. o Big Discount Liquor, 3900 Cedar Grove Parkway o Awe Vending (at Caspers Sports Bar), 4625 Nicols Rd. o Cedar Cliff BP, 4600 Slater Rd. o Cedar Diffley BP, 4205 Nicols Rd. o Cedar Grove Liquor, 1967 Silver Bell Rd. o Comer's Liquor, 3090 Court House Lane #200 o Cooper's Restaurant, 4185 South Robert Trail o Cub Foods, 1020 Diffley Rd. o CVS Pharmacy, 4241 Johnny Cake Ridge Road o E & M Liquor, 1444 Yankee Doodle Rd. o Eagan Cigars & Tobacco Store, 3450 Pilot Knob Rd. o Eagan EZ Stop, 4195 Nicols Rd. o Eagan BP, Inc., 1424 Yankee Doodle Rd. o Eagan Marathon, LLC, 2000 Rahncliff Court o Fastrip Market, 3391 Coachman Rd. o Hidalgo Market, 4130 Blackhawk Rd. o Holiday Stationstore #68, 1065 Diffley Rd. o Holiday Stationstore #232, 4595 Nicols Rd. o Holiday Stationstore #247, 3615 Pilot Knob Rd. o Holiday Stationstore #318, 3044 Holiday Lane o Holiday Stationstore #401, 1650 Diffley Rd. o Holiday Stationstore #400, 2660 Eagan Woods Dr. o Kwik Trip #662, 3145 Dodd Rd. o MGM Liquor Warehouse, 4182 Pilot Knob Rd. o MT Liquory of Eagan LLC, 1629 Lena Ct. o New Mart, 1969 Silver Bell Rd. aq o PDQ Store #214, 4198 Pilot Knob Rd. o Pro Stop Service Centers, Inc., 850 Lone Oak Rd. o Rainbow Foods #8815, 1276 Town Centre Dr. o Sam's Club #4738, 3035 Denmark Ave. o SuperAmerica #4335, 1379 Town Center Dr. o SuperAmerica #4464, 2250 Cliff Rd. o SuperAmerica #4182, 1406 Yankee Doodle Rd. o SuperAmerica #4049, 4200 E. Highway 13 o T.L. Liquors, 1565 Cliff Rd. o Walgreen's #5081, 4220 Lexington Ave. o Walgreen's #2766, 2010 cliff Rd. o Walgreen's #10641, 1274 Town Center Dr. o Wal-Mart Supercenter #1786, 1360 Town Center Dr. o Yocum's Holiday #3831, 1579 Cliff Road ATTACHMENTS: • None. The applications are available for review in the Administration Department. Agenda Memo RegularCity Council Meeting December 1, 2009 CONSENT AGENDA: L . Direct Deputy Clerk to issue 2010 tobacco license renewals upon licensee's submission of renewal documents and fees ACTION TO BE CONSIDERED: Direct Deputy Clerk to issue 2010 tobacco license renewals upon licensee's submission of renewal documents and fees FACTS: • The following businesses currently have 2009 tobacco licenses but have not submitted renewal applications for 2010. It is anticipated that applications will be received prior to December 31, 2009. o Ansari's Mediterranean Grill & Bar, 1960 Rahncliff Ct. o Big Top Wine & Spirits, 1284 Town Centre Dr., Ste. 110 o Blackhawk Liquor, 4130 Blackhawk Rd. o Cedar Diffley BP, 4205 Nicols Rd. o Cedarvale Bowl, 3883 Cedar Grove Parkway o Crown Plaza, 2700 Pilot Knob Rd. o Cub Foods, 1940 Cliff Lake Rd. o Eagan Tobacco, 1960 Cliff lake Rd. o Go -For -It Gas, 4206 Nicols Rd. o Lone Oak Market, 1286 Lone Oak Rd. o Perrier Wines & Liquors, 1960 Cliff Lake Rd. o Sinclair Retail #22060, 1815 Diffley Rd. • Jake's City Grille has indicated they will not be renewing their tobacco license in 2010. ATTACHMENTS: None. Agenda Memo Regular City Council Meeting December 1, 2009 CONSENT AGENDA: M. Renewal of existing Tree Contractor Licenses for 2010 ACTION TO BE CONSIDERED: Approve renewal of existing tree contractor licenses for 2010 as listed below: FACTS: • The following have submitted tree contractor license renewal applications for 2010, paid appropriate fees, met all requirements of the City Code, and are in order for approval: o Robert Miller Tree Service o Adelmanns Turf and Tree o Huston's Landscaping o MC Tree Service ATTACHMENTS: • None. The applications are available for review in the Administration Department. 5a Agenda Memo Regular City Council Meeting December 1, 2009 CONSENT AGENDA: N. Direct Deputy Clerk to issue 2010 tree contractor license renewals upon licensee's submission of renewal documents and fees. ACTION TO BE CONSIDERED: Direct Deputy Clerk to issue 2010 tree contractor license renewals upon licensee's submission of renewal documents and fees. FACTS: • The following have 2009 tree contractor licenses and it is anticipated they will submit 2010 renewal applications prior to December 31. o About Tree Care o Aspenwall Tree Service, Inc. o Asplundh Tree Co. o Branch and Bough Tree Service o Castle Rock Contracting & Tree Service o Ciardelli Tree and Landscaping o Collins Tree Care and Removal o The Davey Tree Expert Company o Dolphy's Tree Service o The F.A. Bartlett Tree Expert Company o Family Tree Service, LLC o JB Tree o Lawrence Tree Removal o Morgan's Tree Service o Oleson's Tree Service o Outdoor Specialties o Northway Tree Service o Precision Landscape and Tree, Inc. o Rainbow Tree Company o Roggenbuck Tree Care o S & S Tree and Horticultural Specialists, Inc. o St. Croix Tree Service, Inc. o Tree Techs o United Tree Service o Valley Tree Service, Inc. o Wright Tree Service, Inc. 83 Agenda Memo Regular City Council Meeting December 1, 2009 CONSENT AGENDA: O. Renewals of existing trash hauler licenses for 2010 ACTION TO BE CONSIDERED: Approve renewals of existing trash hauler licenses for 2010. FACTS: • The following have submitted trash hauler license renewal applications for 2010, paid appropriate fees, met all requirements of the City Code, and are in order for approval: HAULER Single Family / Multiple Dwelling Individual Household Service Hauling Commercial / Multiple Dwelling Commingled Service Hauling Construction / Demolition Hauling # of trucks Allied (BFI) 5 4 2 Alpha Container Services & Recycling 4 Dick's Sanitation Service 12 6 3 Henningsen Construction Service 2 JME of Monticello 2 Keith Krupenny & Son Disposal Service 1 Lloyd's Construction Services 1 Schill's Dumpster Service 1 Twin City Refuse 3 Veolia Environmental Service 2 3 ATTACHMENTS: None. The applications are available for review in the Administration Department. Agenda Memo Regular City Council Meeting December 1, 2009 CONSENT AGENDA: P. Direct Deputy Clerk to issue 2010 trash hauler license renewals upon licensee's submission of renewal documents and fees. ACTION TO BE CONSIDERED: Direct Deputy Clerk to issue 2010 trash hauler license renewals upon licensee's submission of renewal documents and fees. FACTS: • The following have submitted applications and paid appropriate fees, however completion of the application is pending receipt of an insurance certificate. HAULER Single Family / Multiple Dwelling Individual Household Service Hauling Commercial / Multiple Dwelling Commingled Service Hauling Construction / Demolition Hauling # of trucks Buckingham Trucking 1 Dan's Container 1 1 1 LePage & Sons 9 Lightning Disposal 4 Nitti Sanitation 3 1 Randy's Sanitation 5 9 Triangle Services 3 3 3 Veit Disposal Systems 2 Waste Management Services 22 10 9 These licenses are available for review in the Administration Department. • The following have 2009 trash hauler licenses and it is anticipated they will submit 2010 renewal applications prior to December 31. HAULER Single Family / Multiple Dwelling Individual Household Service Hauling Commercial / Multiple Dwelling Commingled Service Hauling Construction / Demolition Hauling # of trucks Capital Waste Systems 2 Highland Sanitation & Recycling 1 1 2 Total Sanitation 2 Twin City Refuse 3 Waste Technology 1 Agenda Memo December 1, 2009 Regular City Council Meeting CONSENT AGENDA: Q. Renewal of existing kennel and pet shop licenses for 2010 ACTION FOR CONSIDERTION: Approve renewal of existing kennel and pet shop licenses for 2010 FACTS: • The following has submitted a completed application for renewal of a kennel license for 2010: o Peanut's Place, Inc. 1904 Shawnee Road • To date, there are no submitted applications for 2010 pet shop license renewals. ATTACHMENTS: • None. Applications are available for review in the Administration Department. 3p Agenda Memo December 1, 2009 Regular City Council Meeting CONSENT AGENDA: R. Direct Deputy Clerk to issue 2010 kennel license and pet shop renewals upon licensee's submission of renewal documents and fees. ACTION FOR CONSIDERTION: Direct Deputy Clerk to issue 2010 kennel license and pet shop license renewals upon licensee's submission of renewal documents and fees. FACTS: • The following currently have 2009 kennel licenses and it is anticipated they will submit applications for renewal prior to December 31. o Angel's Pet Sanctuary, 4940 Dodd Road o Four Paws Pet Resort, 4020 Old Sibley Highway o Lesley's (Tscherne), 3812 Blackhawk Ridge Place • The following currently have 2009 pet shop licenses and it is anticipated they will submit applications for renewal prior to December 31. o Petsmart, Inc., 1297 Promenade Place o Wet World, 3390 Coachman Road o Wal-Mart Stores, Inc., 1360 Town Centre Drive ATTACHMENTS: None. 37 Agenda Information Memo December 1, 2009 Eagan City Council Meeting S. PROJECT 1018, GREENSBORO ADDITIONS STREET IMPROVEMENTS ACTION TO BE CONSIDERED: Receive the Draft Feasibility Report for Project 1018, (Greensboro Additions - Street Improvements) and schedule a public hearing to be held on January 5, 2010. FACTS: • On June 2, 2009 the City Council directed staff to prepare a feasibility report considering the street rehabilitation of the streets within the Greensboro Additions in east -central Eagan. • A structural mill and overlay of these streets is programmed for 2010 in the City of Eagan's 5 -Year CIP (2010-2014). • An informational neighborhood meeting will be held with the adjacent property owners prior to the formal public hearing to review and discuss the proposed improvements. • A draft of this Feasibility Report has been prepared and is being presented to the Council for their consideration of scheduling a public hearing for Tuesday, January 5, 2010. ATTACHMENTS: • Draft Feasibility Report, attached without page numbers. 3g Agenda Information Memo December 1, 2009 Eagan City Council Meeting T. PROJECT 1022, OVERHILL FARM/ SOUTH OAKS ADDITIONS STREET IMPROVEMENTS ACTION TO BE CONSIDERED: Receive the Draft Feasibility Report for Project 1022, (Overhill Farm/ South Oaks Additions - Street Improvements) and schedule a public hearing to be held on January 5, 2010. FACTS: • On June 2, 2009 the City Council directed staff to prepare a feasibility report considering the street rehabilitation of the streets within the Overhill Farm/ South Oaks Additions in southeast Eagan. • A structural mill and overlay of these streets is programmed for 2010 in the City of Eagan's 5 -Year CIP (2010-2014). • An informational neighborhood meeting will be held with the adjacent property owners prior to the formal public hearing to review and discuss the proposed improvements. • A draft of this Feasibility Report has been prepared and is being presented to the Council for their consideration of scheduling a public hearing for Tuesday, January 5, 2010. ATTACHMENTS: • Draft Feasibility Report, attached without page numbers. 3? Agenda Information Memo December 1, 2009 Eagan City Council Meeting U. PROJECT 1026, NORTHVIEW MEADOWS ADDITION STREET IMPROVEMENTS ACTION TO BE CONSIDERED: Receive the Draft Feasibility Report for Project 1026, (Northview Meadows Addition - Street Improvements) and schedule a public hearing to be held on January 5, 2010. FACTS: • On June 2, 2009 the City Council directed staff to prepare a feasibility report considering the street rehabilitation of Curry Trail within the Northview Meadows Addition in southeast Eagan. • A structural mill and overlay of this street is programmed for 2010 in the City of Eagan's 5 -Year CIP (2010-2014). • An informational neighborhood meeting will be held with the adjacent property owners prior to the formal public hearing to review and discuss the proposed improvements. • A draft of this Feasibility Report has been prepared and is being presented to the Council for their consideration of scheduling a public hearing for Tuesday, January 5, 2010. ATTACHMENTS: • Draft Feasibility Report, attached without page numbers. Li 0 Agenda Information Memo December 1, 2009 Eagan City Council Meeting V. PROJECT 1027, PATRICK ROAD STREET IMPROVEMENTS ACTION TO BE CONSIDERED: Receive the Draft Feasibility Report for Project 1027, (Patrick Road - Street Improvements) and schedule a public hearing to be held on January 5, 2010. FACTS: • On June 2, 2009 the City Council directed staff to prepare a feasibility report considering the street rehabilitation of Patrick Road, a commercial/ industrial street south of Diffley Road, east of Lexington Avenue in south-central Eagan. • A structural mill and overlay of this street is programmed for 2010 in the City of Eagan's 5 -Year CIP (2010-2014). • An informational neighborhood meeting will be held with the adjacent property owners prior to the formal public hearing to review and discuss the proposed improvements. • A draft of this Feasibility Report has been prepared and is being presented to the Council for their consideration of scheduling a public hearing for Tuesday, January 5, 2010. ATTACHMENTS: • Draft Feasibility Report, attached without page numbers. 4-1 Agenda Information Memo December 1, 2009 Eagan City Council Meeting W. AUTHORIZE SUBMITTAL OF COMMUNITY DEVELOPMENT BLOCK GRANT AMENDMENT DIRECTION TO BE CONSIDERED: To Authorize an Amendment to reallocate a portion of unused Community Development Block Grant (CDBG) program funds. FACTS: • For the past several years, a majority of the requested City's CDBG funds were allocated for slum and blight removal activity in the Cedar Grove Redevelopment Area. To date, a significant portion of these funds were used for demolition of property in the area. • Moving forward however, HUD does not allow use of CDBG funds for properties acquired using eminent domain authority. Since all the properties that were acquired without eminent domain have already been demolished, recent demolitions were funded through other sources. The City has approximately $348,000 of unused funds in the Cedar Grove activity account. • Additionally, the City has received allocations for CDBG funds for Public Service activities over the past few years to fund several Park programs serving eligible recipients. While CDBG funding remains important to these successful programs now and in future years, Parks Staff has indicated that a portion of unspent 2008 funding may be reallocated to other priority uses to align available funds and eligible expenditures at the present time and moving forward. • HUD has a timeliness of expenditure requirement that calls for old account balances to be spent within a reasonable time of their original allocation. The CDA keeps track of these timeliness requirements and have noted that some of the older allocations for certain cities, including Eagan, are at that point. • As a consequence of these facts, staff is recommending consideration of a CDBG amendment to reallocate the balances noted to other uses and to permit their timely expenditure under HUD rules. • The CDA administers a County -wide housing rehabilitation program to assist income qualified households in making eligible housing upgrades. Funding for this program comes from two sources — a base amount allocated by the CDA and additional funds designated from CDBG allocations of the individual cities. • While the city had some remaining funds available from a revolving account from previous year loans, the City allocated $166,000 of CDBG funds for FY 2009 to help further fund Residential Rehabilitation. Available funding contributed directly from Eagan allows Eagan 4a residents to get priority over county -wide applicants, and the revolving funds get contributed back into an Eagan account. • Dakota County CDA Staff has indicated that requests for Housing Rehabilitation loans from the City of Eagan have increased dramatically within the past year. Reasons for this increase may be attributed to more qualified applicants who have purchased foreclosed homes, more applicants qualifying for loans due to lost jobs or lower wages, and that more money is now available to the program thereby reducing waiting lists that may have deterred new applicants in the past. • The CDA also indicates there are 22 loans underway or near completion for Eagan applicants with a total funding demand of $336,000. However, only $153,000 is currently available in the city account. To meet the current demand, Eagan will need an additional $183,000. PROPOSED BUDGET AMENDMENT: • The CDA is suggesting and Staff is proposing that remaining Cedar Grove funds from 2005 through 2007 totaling $187,607.91, and $22,380 of Public Service funds from 2008 be transferred to the City's Housing Rehabilitation account to help meet current demand for those services among Eagan homeowners. • If approved, $106,900 would remain in the Cedar Grove CDBG account that could be amended at a later date to other eligible activities. • The request, if authorized, will be published by the CDA for public comment and will require CDA Board approval. ATTACHMENTS: • Current Eagan CDBG Fund Balances Page 44_ 43 N w U z J z U. 1- 0 re ▪ 0, I- v cn O m M z w Percent 13.8%1 0 I:COM(DN (0u)c6O_ N 0 r- 0 0 0 r- 26.8%I ,9 (0 '- o O 0 0 E- Total e- a- Cr) C') o M 09 $166,000.00 000 000 v. 000 EC 03 0 %OA O E 0O M ER $72,524.08 $166,753.84 0 O 0 O ER $621,725.83 2009 I $9,850.00 $1,470.00 $24,055.001 $166,753.84 O O O O O O w? $212,128.84 214,055.00 0) 0' 2008 0 O 0) E R 0 O 60 4 $18,900.00 $10,650.00 O $22,380.00 0 00h� a- 69 O 0 N o 'St I' 2007 $953.91 0 O O O O O O ER 0 O O O to f— N ER 00 0 0) co O (fl N ER $153,542.99 214,500.00 28.4% r 2006 I 0 N. 0) ER 0 O ti N ER 0 C ti CO ER 214,500.00 a (fl N CO O' 0 N 0 00) N N ER 0 00) ER 139,500.00 c co co Activity 1Cedar Grove Redev/Clearance Cedar Grove Acquisition Cedar Grove Relocation Youth - After School Services Youth - Homeless Art Senior Services Residential Rehabilitation Senior Center Flooring TOTAL (by year) 'TOTAL BUDGET (by year) PERCENT EXPENDED BY YEAR The fund balances may include project administration. 0 z O 01 N FY2009 Spenddown Ratio Agenda Information Memo December 1, 2009 Eagan City Council Meeting X. AUTHORIZE SUBMITTAL OF FY 2010 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING APPLICATION DIRECTION TO BE CONSIDERED: To Authorize program budget for inclusion in the City's FY 2010 Community Development Block Grant (CDBG) Application and Adopt Resolution approving funding application request. FACTS: • The US Department of Housing and Urban Development (HUD) provides block grant funding for programs that conform to national objectives and eligible activities that meet Community Development Block Grant (CDBG) Program regulations. • The City of Eagan's CDBG allocation is administered through a subrecipient agreement with the Dakota County CDA. The coordination of the program by the CDA permits various cities within the County to focus on a range of specific eligible activities unique to their situations and the CDA is able to balance the activities countywide to ensure that the overall County allocation meets all HUD eligibility requirements. • The CDBG fiscal year begins July 1. The application deadline for local governments has been set at December 15, 2009. • Although final appropriations to HUD have not been made at this time, the CDA indicates that the City should estimate program funding in the amount of 5% over its FY 2009 allocation of $214,055. • Eligible activities under the HUD rules must either remove slum and blight or provide benefits to low and moderate income (LMI) persons and families. The CDA requires that at least 50% of each City's application be designated for LMI uses, which can be either programs or acquisitions. PROPOSED PROGRAM FUNDING: • For FY 2009 the City shifted its CDBG funding requests from Cedar Grove activities to fund mainly an anticipated increase in Housing Rehabilitation requests from residents in the City of Eagan. • The CDA administers a County -wide housing rehabilitation program to assist income qualified households in making eligible housing upgrades. Funding for this program comes from two sources — a base amount allocated by the CDA and additional funds designated from CDBG allocations of the individual cities. • The CDA has indicated that Housing Rehabilitation requests from Eagan have gone up dramatically in 2009 and there are now 22 loans for Eagan residents currently or soon to be underway. ifs- Agenda Information Memo December 1, 2009 Eagan City Council Meeting Page 2 of 2 • City Staff suggests continuing to fund this program with a similar proportion of CDBG funds for FY 2010 in anticipation of continued demand for housing rehabilitation in Eagan. • In addition, The Parks Department is proposing a similar budget of $35,000 to fund three successful Public Service programs which were funded with CDBG dollars last year. These programs include: an after school and summer program for 6-9 graders, a K-12 summer and winter break art program at Dakota Woodlands homeless shelter, and a senior outreach health and wellness program. Please see attached Public Service request proposal for more details. • A proposed budget for all requested programs is attached along with previous year funding allocations. ATTACHMENTS: • Draft application budget onnge • Parks narrative on pages' —5 4to City of Eagan 2010 Proposed Community Development Block Grant Fund Budget $189,800 LMI J J 0 0 0 0 N EA EA 0 00 O N CO O r M 000 0 00) 0 0) O O C0 C) r--- a0O O N N- CO r N- r r N EA EA EA EA EA EA 0 0 0 0 0 0 0 0 0 O O O N N O O O N tf) M r EA EA EA EA a) C d 1 V a) .E N I Senior Services 0 CO CO O N N N N EA EA 0 0 0 ° 0' 0) O to Ln N N EA EA 0 0 0 L[) N- O %— N ER EA J o *Actual FY funding may differ from proposed due to final HUD allocations. µ7 City of Eagan — Parks and Recreation 2010-2011Community Development Block Grant Request The purpose for CDBG funds is to provide a flexible source of annual grant funds for local governments that can be devoted to the activities that best serve their own particular development priorities provided that they 1) benefit low and moderate income persons as outlined by federal standards; 2) prevent or eliminate slums or blight and meet community development needs. With this in mind, Parks and Recreation is proposing the following public services: 1. Public Service Project /Activity: After school and summer programs for 200 youth 6 -9th grade. Description of the proposed project/activity: CDBG funds will be used to support 6 sessions of afterschool programs. The after school programs will be held at Black Hawk Middle School and Dakota Hills Middle School, both located in the City of Eagan. Seventy per cent (70%) of the student participants will be in the school's free/reduced lunch program based on poverty levels (meeting CDBG income limits). The programs will be co -developed by the City of Eagan Recreation Supervisor and Independent School District 196 middle school and Community Education staff and student stakeholders. Coordination will be the sole responsibility of the City of Eagan Recreation Supervisor. Program staffing will be a combination of ISD 196 employees and Eagan Parks and Recreation employees. Specialty instructors will also be included in programs specific to the sessions' focus. The recreation based program will include activities such as sports, games, art, dance, leadership development, etc. targeting youth who are underserved and/or disenfranchised from school and community. The goal of the program is to interest youth in activities that will improve their connection to school and community in a safe environment. In addition, the youth will be taught by both adult and teens who will serve as appropriate role models encouraging healthy youth development. CDBG funds will provide funding for the following items to support programs for 200 participants. Providing public services for 200 Youth a. $2,425 Staff wages for 30 weeks of afterschool programming b. $2,485 Contractual salaries for 30 weeks of afterschool programming c. $3,000 Admission Fees for 200 participants d. $3,000 Transportation for 200 participants Total Cost of Program: $ 10,910 Evaluation and Accountability All program sessions will be evaluated and monitored. Evaluation and monitoring methods will track service quality, goal outcomes and project expenditures. In addition, there will be ongoing measures of program and staff practices to align services with participant needs as a basis for gauging program viability. 2. Public Service Project/Activity: Summer and winter break recreation programs at Homeless Shelter for 24 youth K-12 grades. Description the proposed project/activity K-8 grade: CDBG funds will be used to support an arts and movement class for 12 children, kindergarten through eighth grade. The summer program will be held at Dakota Woodlands homeless shelter in Eagan, Minnesota in July/August of 2010. Seventy-five per center (75%) of the children participating in the program will have met the school free/reduced lunch program based on poverty levels (meets CDBG income limits) The goal of the program is to help develop physical and social skills of youth in a safe environment. Various art projects will be used as a catalyst to teach basic social development and self esteem. Students will have the opportunity to work with high- quality, professional grade art materials as well as using everyday objects and outdoor foliage. The winter break program at Dakota Woodlands focuses on 12 of the older children living at the shelter. This program includes a winter day trip to a local ski/tubing area led by recreation staff. The purpose of the program is to develop mentorship relationships between recreation staff, and the older children at Dakota Woodlands. Staff hopes to be able to draw on the winter trip as a mechanism to build trust and encourage the children to attend other programs held through Eagan Parks and Recreation. City of Eagan Parks and Recreation staff will be paid with CDBG funds. In addition, CDBG funds will be used for arts and movement materials and supplies, and winter trip admission and rental fees. Providing public service Youth, 24 participants: a. $590 Staff wages for 6 weeks of the arts/movement programs and the winter trip b. $200 Recreation equipment and supplies c. $100 Admission and rental fees for the winter trip d. $200 Transportation Total Cost of Program $ 1,090 49 Evaluation and Accountability All project activities will be evaluated and monitored. Evaluation and monitoring methods will track service quality, goal outcomes and project expenditures. In addition, there will be ongoing measures of programs and staff practices to align services with participant needs as a basis for gauging program viability. 3. Public Service Project /Activity: 55+Senior programs in the City of Eagan Municipal Buildings and two off site locations for 1000 participants. Description of the proposed project/activity: The senior population is a presumed benefited population approved by the HUD guidelines for CDBG funds. The continued aging of the baby boomer population will produce an explosion in the number of people ages 55-69 during the coming decade in Minnesota. Between 2009 and 2035, the populations over 65 will more than double. These projections reflect a significant challenge in meeting the recreational program needs of the rapidly growing "senior" population. The proposed program goal is to help provide opportunities that focus on keeping the senior population active, challenged and independent. In addition, the programs will help to meet the needs of working seniors, and outreach to seniors living in multi -unit complexes or senior high rise buildings. These services location will include programs within the City of Eagan Municipal Buildings and two senior housing complexes in the City of Eagan. Currently the senior housing complexes sites include; O'Leary Manor Senior Housing and Gramercy Park Cooperative. These supportive and enriching programs will include activities that focus on health and wellness such as, strength/balance/yoga, Tai Chi for health, printmaking and watercolor, fall prevention, nutrition, book clubs and educational programs. 1. Providing public service 1000 Seniors a. $ 15,000 Seasonal staff salaries b. $ 2,900 Recreation equipment and supplies c. $ 1,200 Contractual instructors d. $ 3,900 Building rental Total Cost of the program $23,000 Evaluation and Accountability All project activities will be evaluated and monitored. Evaluation and monitoring methods will track service quality, goal outcomes and project expenditures. In addition, there will be ongoing measures of programs and staff practices to align services with participant needs as a basis for gauging program viability. Total amount of City of Eagan CDBG Public Service Fund Request: $35,000 56 Agenda Information Memo December 1, 2009, Eagan City Council Meeting Y. APPROVE THE RESOLUTION TO ALLOCATE SAC UNITS FROM CEDAR GROVE DEMOLITIONS TO REDEVELOPMENT PROJECTS IN THAT TIF DISTRICT ACTION TO BE CONSIDERED: To approve a resolution to allocate SAC units from demolitions in the Cedar Grove Area to new development projects in the redevelopment district. FACTS: • The City of Eagan through its Economic Development Authority, has actively been pursing acquisition of properties within the Cedar Grove 65 -acres core redevelopment area, and to date, has acquired all but three properties that were identified as necessary for redevelopment. • The City of Eagan has worked with the Dakota County CDA to coordinate demolition of acquired properties, and to date, 26 properties have been demolished in the core redevelopment area and prepared for development. • Demolished properties have resulted in 104 available SAC credits submitted to the Met Council. Future demolitions of acquired properties will result in 8 additional SAC credits. Non -acquired properties contain 7 SAC credits. • Effective January 1, 2010, the Met Council SAC Program will not recognize new net SAC credits. Credits will be granted based on prior demand in a 7 -year look back period. Phased developments will be allowed to use credits over a 10 -year period on the specific site from which they originated. Existing credits to the area will remain available for use. • The City of Eagan intends to utilize available SAC credits to the redevelopment area as a resource for one or more Phase I projects that will be completed within 10 years. ATTACHMENTS: • Resolution on page • Cedar Grove Core Area roperty and Phasing Map on pag S/ CITY OF EAGAN RESOLUTION NO. 09 - Approve the Allocation SAC Units from Cedar Grove Demolitions to Redevelopment Projects in that TIF District WHEREAS, the Cedar Ave/Hwy 13 area in Eagan experienced significant changes in access, visibility and market competition over the past twenty years that significantly diminished the area's ability to maintain a successful mix of retail, service, and office uses that could optimize the properties in the area. WHEREAS, the City of Eagan began to actively study the Cedar Ave/Hwy 13 area in 1998 and provided a set of redevelopment guidelines and conceptual plans through the Village Plaza study that established a framework for later planning efforts. WHEREAS, the City of Eagan created and certified a development/Tax Increment Financing District (the Cedar Grove Redevelopment Area) in 2003, and created a set of land use policies via a Special Planning Area (Special Area No. 5), and incorporated the Special Area into the City Comprehensive Plan Land Use Chapter. WHEREAS, the City of Eagan through its Economic Development Authority, has actively been pursing acquisition of properties within the Cedar Grove 65 -acres core redevelopment area, and to date, has acquired all but three properties that were identified as necessary for redevelopment. WHEREAS, the City of Eagan has worked with the Dakota County CDA to coordinate demolition of acquired properties, and to date, 26 properties have been demolished in the core redevelopment area and prepared for development. WHEREAS, the City of Eagan has established a Master Developer for the Cedar Grove core area, and has worked closely with them to create and approve conceptual phased development plans and land transfer agreements. NOW, THEREFORE, BE IT RESOLVED that the City of Eagan, as the local government authority, will assert that Phase I plans currently require more SAC units than we have in inventory and that it is our intention to use them as a resource for one or more of the Phase I projects that will be completed within ten years. ADOPTED by the Council this 1St day of December, 2009. Mike Maguire, Mayor ATTEST: Maria Peterson, City Clerk Agenda Information Memo December 1, 2009 Eagan City Council Meeting A. Proposed Budget and Property Tax Levy for 2010 ACTIONS TO BE CONSIDERED: 1) To close the public hearing and set the 2010 general levy and General Fund budget considerations for the December 15 City Council meeting. 2) To close the public hearing and set the 2010 Cedarvale Special Services District (SSD) levy and budget considerations for the December 16 City Council meeting. FACTS: • The State requires cities over 2,500 in population to hold a public hearing on their proposed budget and tax levy for next year. This year, the Legislature eliminated the requirement to advertise the hearing in the newspaper. • Parcel specific notices were mailed by the County to Eagan residents in mid- November. All Cedarvale SSD property owners also received a mailed notice of the proposed SSD levy and budget. • Chief Financial Officer Pepper is listed as the City contact on the Proposed Property Tax notices, and has received five phone calls and one email from residents expressing displeasure that their taxes were going up while their property values were going down. All callers received further explanation and were encouraged to attend the December 8 open house, and some indicated they would. • Hearings for both the general levy and the Cedarvale SSD levy are to be conducted. • Since the time the General Fund budget was last formally reviewed in September, some adjustments have been made. The net effect of the adjustments is a reduction in revenues of $140,300, and a corresponding reduction in expenditures of $126,400 and contingency of $13,900. • The budget remains balanced with revenues and expenditures/contingency at $27,537,100. The expenditure budget is .6% below the original 2009 budget, and 1.8% above the amended 2009 budget. Including contingency, the budget is .7% below the original 2009 budget, and 1.5% above the amended 2009 budget. • Final budget adoption is set for the December 15 regular Council meeting. • The City Administrator will make a PowerPoint presentation. • Both the PowerPoint presentation and the additional 2010 General Fund Budget and Property Tax Levy handout will be posted on the City's website. Note: Historically, at least one or two residents attend this hearing hoping to challenge the County's assessed value on their property, not realizing this is the wrong place and time to do so. It may be prudent to address that with the audience before the presentation. ELI ATTACHMENTS: • Enclosed without page number are the PowerPoint slides to be presented at the hearing by City Administrator Hedges. Copies of the slide show will be available to the public at the hearing. • Also enclosed without page number is a more in-depth 2010 General Fund Budget and Property Tax Levy handout that will also be available to the public after the PowerPoint presentation is made. • Enclosed on page S/..c, is copy of the memo that went out with the notice sent to property owners in the Cedarvale SSD. SS 4,111P* City of Evan emo To: CEDARVALE SPECIAL SERVICE DISTRICT MEMBERS From: JON HOHENSTEIN, COMMUNITY DEVELOPMENT DIRECTOR Date: NOVEMBER 3, 2008 Subject: PUBLIC HEARING NOTICE -2010 SPECIAL SERVICE DISTRICT BUDGET This memo is to inform you of a public hearing on Monday, December 1, 2009 regarding the Proposed 2010 Budget for the Cedarvale Special Service District. The hearing will take place at 6:30 p.m. during the City Council Meeting in the City Council Chambers at 3830 Pilot Knob Road. The City is recommending a 2010 service charge of $3,000 be imposed, which is the same as the 2009 service charge amount, and budgeted expenditures of $3,500 which is the same as 2009 (A $500 auditing allocation was removed from the 2009 budget). The proposed budget will continue to cover mowing, fertilizing, and weed control of the public common area within the District. The budgeted expenditures are an estimate of the annual cost of operating and maintaining the improvements. A summary of historic budgets and the 2010 budget for the District is shown below. Fund Balance, Beginning of Year 2007 2008 2009 2010 Actual Actual Budget Budget $3,830 $2,699 $1,008 $608 Revenues: Special Services District Taxes $2,994 $3,195 $3,000 $3,000 Interest on Investments $205 $147 $100 $100 Total Revenues $3,199 $3,342 $3,100 $3,100 Expenditures: Mowing/Contractual Services $4,215 $3,754 $2,500 $2,500 Fertilizer and Weed Control $1,178 $1,000 $1,000 Sign Maintenance (Discontinued) $115 $101 $0 $0 Total Expenditures $4,330 $5,033 $3,500 $3,500 Excess of Revenue over Expenditures ($1,131) ($1,691) ($400) ($400) Fund Balance, End of Year $2,699 $1,008 $608 $208 All interested persons will have an opportunity to be heard at the hearing regarding this proposed service charge. The petition requirements of section 428A.08 of the Minnesota Statutes do not apply to the proposed service charge since this proposal is a subsequent and not the initial proposal for imposition of the service charge. For more information call Jon Hohenstein, Community Development Director at (651) 675-5653. m Agenda Information Memo December 1, 2009 Eagan City Council Meeting Old Business A: Receive bids and award sale of $8,500,000 General Obligation Recreational Facilities Refunding Bonds, Series 2009B, and engage Springsted, Inc. to perform continuing disclosure reporting and arbitrage rebate calculation requirements for such bonds. ACTIONS TO BE CONSIDERED: • To approve the resolution awarding the sale of $8,500,000 General Obligation Recreational Facilities Refunding Bonds, Series 2009B; • To authorize execution of an escrow agreement placing most of the bond proceeds in an escrow account to refund the existing bonds when they become callable; and • To engage Springsted, Inc. to perform future continuing disclosure reporting and arbitrage rebate calculation requirements for the above bonds. FACTS: • A resolution to refund the 2001A General Obligation Recreational Facilities bonds was approved at the November 5 City Council meeting. The City hopes to take advantage of favorable interest rates and realize a present value savings in the range of $300,000 to $400,000 through this refmancing. Exact present value savings will be known after the bids are received. • The bid opening will take place at 10:00 a.m. on December 1. • Dave MacGillivray, Chairman of Springsted Inc., will be at the Council meeting to present the bids and recommend action. • Ratings were requested from both Standard & Poors (S&P) and Moody's. Both ratings agencies have confirmed the current ratings on existing debt: AA+ (S&P) and Aal (Moody's). Both ratings are one step below AAA. • Sale recommendations were previously made available to the Council. ATTACHMENTS: • Moody's credit rating report is attached on pages 5g through 10 D . • Standard & Poors' credit rating report is expected by Monday and will be distributed with the Additional Information memo. • The draft resolution for this issue -14 pages in length—is not included with the packet, but is available for review at the City Administrator's office. • The escrow agreement -9 pages in length—is also not included with the packet, but available for review. Tom Pepper From: GID - Moody's Investors Service [epi@moodys.com] Sent: Monday, November 23, 2009 4:32 PM To: Tom Pepper Subject: Eagan (City of) MN MOODY'S ASSIGNS Aa1 RATING TO CITY OF EAGAN'S (MN) $8.5 MILLION GO RECREATIONAL FACILITIES REFUNDING BONDS, SERIES 2009A Aa1 RATING APPLIES TO $26.1 MILLION OF OUTSTANDING GO DEBT, INCLUDING CURRENT OFFERING Eagan (City of) MN Municipality Minnesota Moody's Rating Issue Rating General Obligation Recreational Facilities Refunding Bonds, Series 2009A Aa1 Sale Amount $8,500,000 Expected Sale Date 12/01/09 Rating Description General Obligation Unlimited Tax NEW YORK, November 23, 2009 -- Moody's Investors Service has assigned a Aa1 rating to the City of Eagan's (MN) $8.5 million General Obligation Recreational Facilities Refunding Bonds, Series 2009A. Concurrently, Moody's has affirmed the Aa1 rating on the city's outstanding general obligation debt. Eagan has $26.1 million of total general obligation debt, including the current issue. Proceeds of the Series 2009A bonds will refund the city's outstanding General Obligation Recreational Facilities Bonds, Series 2001A for estimated net present value savings. The bonds are secured by the city's general obligation unlimited tax pledge. Affirmation and assignment of the Aa1 general obligation rating reflect the city's mature taxbase with recent declines in full valuation; sound financial operations with healthy reserves despite a recent operating deficit; and low debt with rapid payout. MATURE TWIN CITIES SUBURB HOME TO SEVERAL CORPORATE HEADQUARTERS; RECENT DECLINES IN FULL VALUATION Despite recent declines in full valuation, Moody's anticipates that Eagan's tax base will remain stable due to its favorable location in the twin cities area and some ongoing commercial development. Located in Dakota County (general obligation rated Aaa), Eagan is a first tier suburb south of St. Paul (Aa2/stable outlook). Growth in the city's large $8 billion tax base has slowed in recent years due to the economic downturn combined with the city becoming fully developed. Full value grew a modest 3.2% between 2006 and 2007, and saw a decline of 5.9% between 2007 and 2008. Officials expect this trend to continue into the near term due to continued depreciation of residential properties. Eagan's population more than tripled between 1980 and 2000, growing 129%. Population growth has also slowed down, with an estimated 0.7% growth between 2000 and 2008. Officials indicate that the city is poised for valuation growth in the long term as the Minnesota Department of Transportation is building a transit center in the city to facilitate commuting in the region. The city is home to the headquarters of several corporations, including Thomson West and Blue Cross Blue Shield (BCBS) of Minnesota. Thomson West, a legal publishing company, is the city's largest taxpayer and employer, comprising 1.7% of assessed valuation and employs 6,000. BCBS is the second largest, comprising 1.1% of assessed valuation and employs 4,000. Delta and Northwest Airlines recently merged, and is headquartered in Eagan. Delta Airlines Inc. (rated B2/negative outlook) is the fourth largest employer with 1,830 employees. Recently, the company announced the elimination of 600 positions at the Eagan headquarters. Due to the presence of numerous corporations among the city's taxpayers and employers, Moody's expects that Eagan should withstand the impact of staffing reductions at Delta. The city's unemployment rate of 6.4% is lower than the state's of 7.1% and the nation's of 9.5% for September 2009. Resident income levels exceed state and national medians with per capita and median family income at 130% and 140.8% of state medians, respectively. SOUND FINANCIAL OPERATIONS SUPPORTED BY HEALTHY RESERVES DESPITE RECENT OPERATING DEFICIT Despite a recent modest operating deficit, Moody's expects the city's stable financial operations to continue due to healthy reserve levels and strong management. Historically, the General Fund balance has remained above 40% of annual General Fund revenues. The fiscal 2007 General Fund balance of $11.2 million equaled a healthy 42.6% of General Fund revenues. Fiscal 2008 posted an operating deficit of $780,000 due to shortfalls in revenues and unallotment of Market Value Homestead Credit (MVHC) from the state. As a result, fiscal 2008 closed with a General Fund balance of $10.4 million, or a still healthy 39.8% of revenues. The city's formal General Fund balance policy calls for a minimum reserve of 40% to 45% of the subsequent year's budgeted expenditures. Fiscal 2008 is the second time in 30 years the city has gone below its formal General Fund balance policy, evidencing the city's history of sound financial management. Officials expect to close fiscal 2009 with similar reserve levels, and anticipate rebuilding the General Fund in fiscal 2010 to levels in adherence to its formal policy. Property taxes are the city's primary operating revenue source, comprising 66% of operating revenues in fiscal 2008, while intergovernmental aid is a modest 3.9% of operating revenues. The state of Minnesota decreased Local Government Aid (LGA) to cities and counties in fiscal 2008. Favorably, the city does not receive LGA. The city will receive a loss in MVHC of $700,000 in fiscal 2009 and will lose an additional estimated $900,000 in fiscal 2010. In addition, property tax levy limits have been recently imposed for Minnesota local governments for the next three years. Annual tax levy increases are limited to inflation plus one-half the growth rate of both households and commercial/industrial construction, with exemptions for certain expenditures, including general obligation debt service and public safety salaries and benefits. In order to maintain structural balance under the levy limits, reductions in state aid and other revenues, city officials implemented various expenditure reductions, including a hiring freeze, the elimination of nine full-time positions, and the reduction of certain non-essential services. Despite some of the revenue and expenditure pressures, Moody's expects the city's financial operations will remain solid due to the history of strong management and healthy reserve levels. As growth in the regional and national economies has recently slowed down, there have been development delays in the city's Cedar Grove Tax Increment Financing (TIF) district. At the close of fiscal 2008, the Cedar Grove Fund posted a large $24.4 million deficit, with $38.1 million due to other funds. The Cedar Grove Fund borrowed $38.1 million from various non -major governmental funds, mostly capital projects funds, to finance land purchase, redevelopment and infrastructure costs. At the close of fiscal 2008, the total cash available across all non -major governmental funds was $13.3 million and had a total fund balance of $32 million. Officials expect the Cedar Grove fund will repay monies borrowed to the other funds, pending land sales and development. Moody's notes that further delays and continuing advances from other funds, and potential support from the General Fund may put pressure on city operations. Moody's will continue to monitor the deficit and development of the Cedar Grove TIF. LOW DEBT LEVELS WITH RAPID PRINCIPAL AMORTIZATION, FUTURE BORROWINGS PLANNED Moody's believes Eagan's debt levels will remain low given the city's low debt burden with rapid principal amortization. At 0.3% and 1.6% of full value, respectively, the city's direct and overall debt burdens are below state and national medians. Adjusting for the Series 2008A bonds, which are supported by annual Municipal State Aid (MSA) allotments from the Minnesota Department of Transportation, the city's adjusted overall debt burden is slightly lower at 1.5%. Per 2 state statute, a city's combined annual debt service payments due in any year on all outstanding MSA bonds may not exceed 90% of the city's last annual allotment for construction. The average annual principal and interest payment on the Series 2008A bonds, which is Eagan's only MSA issue, is projected to be $284,809, which is within the statutory limit of $1,423,342. Principal amortization is rapid, with 82% of the city's direct debt paid in ten years. All of the city's outstanding debt is fixed rate, and the city is not a party to swap agreements. Minnesota cities benefit from the state's statutory requirement to levy 105% of the annual debt service levy for tax -backed general obligation debt, providing excess revenues to offset property tax delinquencies. The city plans to issue bonds in 2010 to finance the relocation and building of a new fire station. Officials also plan to issue $600,000 in equipment certificates in early 2010. KEY STATISTICS 2000 Census population: 63,557 (a 34.1% increase from 1990) 2008 Estimate population: 63,985 (a 6% increase from 2000) 2008 Full value: $8 billion 2008 Full value per capita: $125,928 1999 per capita income: $30,167 (139.7% of US) 1999 median family income: $80,062 (160.0% of US) 2000 median home value: $164,500 (137.5% of US) Fiscal 2008 General Fund balance: $10.4 million (39.8% of General Fund revenues) Direct debt burden: 0.3% Overall debt burden: 1.6% Principal amortization (10 years): 82.0% Post -sale general obligation debt outstanding: $26.1 million The principal methodology used in rating the current issue was "General Obligation Bonds Issued by U.S. Local Governments" which can be found at www.moodys.com in the Rating Methodologies sub -directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub -directory on Moody's website. The last rating action with respect to the City of Eagan (MN) was on July 14, 2008 when its Aa1 general obligation unlimited tax rating was affirmed. ANALYSTS: Soo Yun Chun, Analyst, Public Finance Group, Moody's Investors Service Rachel Cortez, Backup Analyst, Public Finance Group, Moody's Investors Service Henrietta Chang, Senior Credit Officer, Public Finance Group, Moody's Investors Service 6D' Agenda Information Memo December 1, 2009, Eagan City Council Meeting VII. NEW BUSINESS A. CONDITIONAL USE PERMIT — WAGGING TAILS PET RESORT ACTION TO BE CONSIDERED: To approve (OR direct preparation of Findings of Fact for Denial) a Conditional Use Permit to allow a full service animal care facility with overnight boarding and outdoor runs located at 3275 Sun Drive, legally described as Lot 1, Block 1, Tan Me Industrial Park 2nd Addition, subject to the conditions listed in the APC minutes. And To approve a Kennel License for Wagging Tails, Inc. located at 3275 Sun Drive. REQUIRED VOTE FOR APPROVAL: Majority of Councilmembers Present FACTS: > The subject property is zoned I-1 (Limited Industrial) which allows kennels via a CUP (Conditional Use Permit). > The applicant proposes to lease the 20,000 SF building to accommodate up to 130 dogs and 100 dogs overnight. > The applicant further proposes a 1,800 SF outdoor play area; a minimum of 20% of this space should provide shade during the summer months. The Site Plan must be revised to reflect this requirement. > The property is located on a dead-end private street (Sun Drive) which has three other properties that access it. The surrounding properties are also zoned I-1. > The outdoor play area is proposed to be five feet from the property line and surrounded by a six foot privacy fence. > Proposed hours of operation are, 7:00 a.m. to 7:00 p.m., Monday through Friday and 8:00 a.m. to 6 p.m. on weekends. Staff hours to care for the boarded animals are 6:00 a.m. to 9:00 p.m. every day. • The Animal Control Officer has reviewed the proposal and offered her comments which are incorporated in the staff report. An inspection will occur at the subject location prior to opening. > All requirements of the City Code have been met in regard to the licensing of the kennel. 6( > The Advisory Planning Commission held a Public Hearing on November 24, 2009 and is recommending denial. 60 DAY AGENCY ACTION DEADLINE: December 20, 2009 ISSUES: > Adjacent property owners spoke to concerns about the proposed outdoor play area, potential noise and potential negative impact to their properties. ➢ ➢ APC members stated they were not convinced the use could not work at the subject site but they believed they lacked enough information to approve the permit. ATTACHMENTS (5): CO3Location map on page 3 . /�(T �[ /- Draft November 24, 2009 APC minutes bon pages through (!J7 . Staff report on pages Lpgthroug. Gliori letter and e-mail on pages throu h . G Blue Rhino summary of concerns on pages through / 7 . (O� Location Map Eagan Boundary Right-of-way Parcel Area Park Area Building Footprint 1000 0 1000 2000 Feet Development/Developer: Wagging Tails Pet Resort Application: Conditional Use Permit Case No.: 08 -CU -12-10-09 41*City ofEapi Community Development Department 3 THIS MAP IS INTENDED FOR REFERENCE USE ONLY The City of Eagan and Dakota County do not guarantee the accuracy of this information and are not responsible for errors or omissions. N W E Advisory Planning Commission November 24, 2009 Page 8 of 11 C. Wagging Tails Pet Resort Applicant Name: Wagging Tails Inc. Location: 3275 Sun Drive; Lot 1, Block 1, TAN ME INDUSTRIAL PARK 2ND ADDITION Application: Conditional Use Permit A Conditional Use Permit to allow an overnight kennel facility. File Number: 08 -CU -12-10-09 Planner Thomas introduced this item and highlighted the information presented in the City Staff report dated November 17, 2009. She noted the background and history. Keith Olson, Owner of Invisible Fence and applicant, introduced the staff for the proposed Wagging Tails Pet Resort. Chair Chavez opened the public hearing. Tim Quady, co-owner of Blue Rhino Studios located at 3277 Sun Dr., opposed this application due to concerns about the location of the outdoor run, the noise, smell and the possible negative effects on his clients and property value. David Leak, co-owner of Blue Rhino Studios stated he had the same concerns as Mr. Quady. Tracy Gliori, Owner of GlioriProperties at 3291 Terminal Drive also shared the same concerns and added that urine and feces posed a potential threat to the environment. She also addressed a concern of theft or possible damage on her property as well as the changing of character of the property if the application for a CUP was approved Patrick Dolney, DG Welding, 3265 Sun Drive, raised the concern that the proposed application will change the character of the area. Roberta Venglia & Kate LaBrosse, owners of Peanuts Place located at 1904 Shawnee Road, raised the concern of the proposed location and the negative impact the use would have on their business and employees. Leslie Tscherne, 3812 Blackhawk Ridge, stated her concerns with the lack of experience of the staff, and incomplete business plan. There being no further public comment, Chair Chavez closed the public hearing and turned the discussion back to the Commission. Member Keeley stated concern over the APC's authority to recommend denial. Inparticular, she stated she was struggling with the "compatibility with the character of the general area." Member Heaney concurred with Member Keeley and stated he would like more information. Member Filipi stated it is not the APC's role to get involved in business competition issues. Further, he shared his concerns with possible environmental, health and safety issues with runoff from the outside run. He also asked about the provisions of a kennel license. tptt Advisory Planning Commission November 24, 2009 Page 9 of 11 Member Supina asked for staff to clarify where the use is accepted. Planner Thomas stated kennels with outdoor dog runs are only permitted with a Conditional Use Permit in Agriculture or Limited Industrial Zoning Districts. Member Supina asked the applicant to clarify their plan of noise reduction from the barking dogs. Jody Karol, Wagging Tails Pet Resort Manager, clarified the intended staff to dog ratio that will be employed and strategies to eliminate or minimize barking. She also shared some examples of other dog day care operations in similar locations. Ms. Karol stated dogs will bark in the morning when they are first let out at 6:00 a.m. but that wouldn't affect neighboring property owners. She also stated all standards set by PCSA (Pet Care Service Association). Member Supine stated he is also concerned about waste but that he has faith that industry standards will address that. He stated his concern that the APC does not have enough information and would like more specific staffing plans, noise mitigation plans and industry standards for spacing indoors and outdoors. Member Filipi asked the applicant to speak to the issue of cleaning p the dog waste. Jody Karol explained how waste removal would occur and that they will follow all industry standards. Member Heaney roved, Member Keeley seconded a motion to recommend approval of a Conditional Use Permit (CUP) to allow a full service animal care facility with overnight boarding and outdoor runs located at 3275 Sun Drive, legally described as Lot 1, Block 1, Tan Me Industrial Park 2nd Addition, subject to the following conditions: 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council. 2. The total number of animals, both daycare and boarded dogs, in the facility at one time shall not exceed 130. The number of overnight boarding kennels shall not exceed 100. 3. Staff hours of operation for boarded animals shall be 6:00 a.m. and 9:00 p.m. every day. 4. Customer service hours shall be 7:00 a.m. to 7:00 p.m. Monday through Friday, and 8:00 a.m. to 6:00 p.m. Saturday and Sunday. 5. Inspection by the Animal Control Officer shall occur prior to opening. 6. The applicant shall maintain a current kennel license. 7. The premises shall be open for inspection by the City and the City shall have the right to inspect the premises. tog Advisory Planning Commission November 24, 2009 Page 10 of 11 8. All signage is subject to City Code requirements. 9. The perimeter of the outdoor play area shall be secured with a six-foot privacy fence per the Site Plan received November 2, 2009. 10. Twenty percent of the outdoor play area shall have a canopy and provide shade during the months of May through October. 11. The designated bathroom area for the animals shall be cleaned daily. Following the motion and second, the following discussion took place: Member Keeley noted again that she has concerns over the APC's authority to recommend denial and feels she has to approve the applcation based on those concerns. Member Piper addressed Member Keeley's concerns by stating the burden falls to the applicant. Member Supina commented on excessive noise and Stated he would like more information on mitigating the noise. Member Keeley also commented on the noise and stated her belief that the Peanut's day tare is essentially in the same location. ace dog Member Chavez summarized the basis on which the APC is charged with reviewing the request and that most of the standards are very subjective in nature. He further stated that the concerns raised could possibly be addressed with moreinformation. Member Dugan stated he could not support the request due to the lack of information; however, the City has determined that Limited Industrial is the appropriate zoning for dog kennels. Member Supina asked about the next step for the applicant if application was denied. City Planner Ridley, said the applicant can request to be tabled to the December APC meeting so they could provide the Advisory Planning Commission more information or they proceed directly to the City Council regardless of the APC action. The question was called and the motion to approve the CUP failed 0-7. 4(e Advisory Planning Commission November 24, 2009 Page 11 of 11 Member Filipi moved, Member Heaney seconded a motion to recommend denial of a Conditional Use Permit (CUP) to allow a full service animal care facility with overnight boarding and outdoor runs located at 3275 Sun Drive, legally described as Lot 1, Block 1, Tan Me Industrial Park 2nd Addition. A vote was taken. All voted in favor. Motion to deny carried 7-0. V. VISITORS TO BE HEARD (FOR THOSE NOT ON AGENDA) There were no visitors to be heard for items not on the agenda. VI. OTHER BUSINESS City Planner Ridley stated there will be no Advisory Planning Commission Workshop in December. VII. ADJOURNMENT Chair Chavez moved, Member Keeley seconded a motion to adjourn the Commission meeting at 8: p.m. A vote was taken. All voted in favor.='Motion carried 7 -0. Respectfully Submitted by Thomas Heaney APC Secretary Julie Strid Planning Aide/Recording Secretary f07 visory Planning PLANNING REPORT CITY OF EAGAN REPORT DATE: November 17, 2009 APPLICANT: Keith Olson PROPERTY OWNER: Jerry Woods REQUEST: Conditional Use Permit LOCATION: 3275 Sun Drive COMPREHENSIVE PLAN: IND, Limited Industrial ZONING: I-1, Limited Industrial CASE: 08 -CU -12-10-09 HEARING DATE: November 24, 2009 APPLICATION DATE: Oct. 21, 2009 PREPARED BY: Sarah Thomas SUMMARY OF REQUEST The applicant is requesting approval of a Conditional Use Permit (CUP) to allow a full service animal care facility with overnight boarding and outdoor runs located at 3275 Sun Drive, legally described as Lot 1, Block 1, Tan Me Industrial Park 2' Addition. AUTHORITY FOR REVIEW Conditional Use Permit: City Code Chapter 11, Section 11.40, Subdivisions 4C and 4D provide the following. Subdivision 4C states that the Planning Commission shall recommend a conditional use permit and the Council shall issue such conditional use permits only if it finds that such use at the proposed location: A. Will not be detrimental to or endanger the public health, safety, or general welfare of the neighborhood or the City. B. Will be harmonious with the general and applicable specific objectives of the Comprehensive Plan and City Code provisions. C. Will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area, nor substantially diminish or impair property values within the neighborhood. GC? Planning Report — Wagging Tails Pet Resort November 24, 2009 Page 2 D. Will be served adequately by essential public facilities and services, including streets, police and fire protection, drainage structures, refuse disposal, water and sewer systems and schools. E. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be hazardous or detrimental to any persons, property or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare or odors. F. Will have vehicular ingress and egress to the property which does not create traffic congestion or interfere with traffic on surrounding public streets. G. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. H. Is appropriate after considering whether the property is in compliance with the City Code. Subdivision 4D, Conditions, states that in reviewing applications of conditional use permits, the Planning Commission and the Council may attach whatever reasonable conditions they deem necessary to mitigate anticipated adverse impacts associated with these uses, to protect the value of other property within the district, and to achieve the goals and objectives of the Comprehensive Plan. In all cases in which conditional uses are granted, the Council shall require such evidence and guarantees as it may deem necessary as proof that the conditions stipulated in connection therewith are being and will be complied with. BACKGROUND/HISTORY This site was platted in 1995 and further subdivided into two lots in 2005. A 20,000 sq. ft. building was constructed on the subject property. The site is the former location for Tan Me Sales & Service, a distributor of tanning systems and accessories. EXISTING CONDITIONS The property is guided IND, Limited Industrial and is currently zoned I-1, Limited Industrial. Kennels with outdoor runs are allowed, via Conditional Use Permit, in Industrial Zoning Districts. Access to the site is provided from Terminal Drive via a private street, Sun Drive, which serves a total of 4 parcels. SURROUNDING USES The following existing uses, zoning, and comprehensive guide plan designations surround the subject property: Planning Report — Wagging Tails Pet Resort November 24, 2009 Page 3 EVALUATION OF REQUEST Proposal — Wagging Tails Pet Resort will occupy the entire 20,000 SF building; 8,000 SF of office and 12,000 SF of warehouse space. Invisible Fence of the Twin Cities, the applicant's current pet business, will also share this space. The warehouse square footage is divided into three separate indoor play areas, kennels and a grooming area. In addition, the applicant proposes three outdoor play areas, totaling 1,800 SF. The pet resort is proposed to accommodate 100 dogs at one time with an additional 30 dogs for daycare only services. A small portion of the business (less than 5%) consists of retail sales. The applicant proposes the outdoor play area to be fenced with a six foot opaque PVC fence. This privacy fence, in addition to a five foot landscaped area at the eastern property line, provides a visual and noise buffer to surrounding properties. The Site Plan identifies 3 umbrellas to provide shade for the animals in the outdoor play area and the applicant's narrative reads that the building should provide adequate shade. Upon a site visit by Eagan's Animal Control Officer, it was found that at 11:30 a.m. (12:30 p.m. during the summer months) the outdoor area was in full sun. The applicant should provide a minimum of 20% shade area at any given time during the months of May through November. Hours of Operation — Proposed hours of operation are 7:00 a.m. to 7:00 p.m., Monday through Friday and 8:00 a.m. to 6:00 p.m. on weekends. Staff hours to care for the boarded animals are 6:00 a.m. to 9:00 p.m. every day. The boarded dogs would be kenneled from 9:00 p.m. to 6:00 a.m. A staff member would come at 6:00 a.m. to let the dogs out in the morning. After the daycare dogs go home in the evening, the overnight dogs would be fed and let out again before being kenneled inside for the night by 9:00 p.m. The applicant proposes dog doors to the outdoor play area, so it is possible that dogs could be outdoors during 6 a.m. to 9 p.m. Animal Control Officer — The City's Animal Control Officer routinely conducts inspections of similar facilities, has reviewed this application and her suggestions are included in this staff report. The Animal Control Officer should conduct an inspection prior to opening at the new location. 70 Existing Use Zoning Land Use Designation North Manufacturing and Warehousing I-1, Limited Industrial IND, Limited Industrial South Service Garage I-1, Limited Industrial IND, Limited Industrial East Warehouse/Office I-1, Limited Industrial IND, Limited Industrial West Vacant — City shooting range PF, Public Facility QP, Quasi -Public EVALUATION OF REQUEST Proposal — Wagging Tails Pet Resort will occupy the entire 20,000 SF building; 8,000 SF of office and 12,000 SF of warehouse space. Invisible Fence of the Twin Cities, the applicant's current pet business, will also share this space. The warehouse square footage is divided into three separate indoor play areas, kennels and a grooming area. In addition, the applicant proposes three outdoor play areas, totaling 1,800 SF. The pet resort is proposed to accommodate 100 dogs at one time with an additional 30 dogs for daycare only services. A small portion of the business (less than 5%) consists of retail sales. The applicant proposes the outdoor play area to be fenced with a six foot opaque PVC fence. This privacy fence, in addition to a five foot landscaped area at the eastern property line, provides a visual and noise buffer to surrounding properties. The Site Plan identifies 3 umbrellas to provide shade for the animals in the outdoor play area and the applicant's narrative reads that the building should provide adequate shade. Upon a site visit by Eagan's Animal Control Officer, it was found that at 11:30 a.m. (12:30 p.m. during the summer months) the outdoor area was in full sun. The applicant should provide a minimum of 20% shade area at any given time during the months of May through November. Hours of Operation — Proposed hours of operation are 7:00 a.m. to 7:00 p.m., Monday through Friday and 8:00 a.m. to 6:00 p.m. on weekends. Staff hours to care for the boarded animals are 6:00 a.m. to 9:00 p.m. every day. The boarded dogs would be kenneled from 9:00 p.m. to 6:00 a.m. A staff member would come at 6:00 a.m. to let the dogs out in the morning. After the daycare dogs go home in the evening, the overnight dogs would be fed and let out again before being kenneled inside for the night by 9:00 p.m. The applicant proposes dog doors to the outdoor play area, so it is possible that dogs could be outdoors during 6 a.m. to 9 p.m. Animal Control Officer — The City's Animal Control Officer routinely conducts inspections of similar facilities, has reviewed this application and her suggestions are included in this staff report. The Animal Control Officer should conduct an inspection prior to opening at the new location. 70 Planning Report — Wagging Tails Pet Resort November 24, 2009 Page 4 SUMMARY/CONCLUSION Wagging Tails Pet Resort is proposing a full service animal care facility with overnight boarding and outdoor runs. The daycare facility is designed for 130 dogs and up to 100 dogs to be boarded overnight. The subject site is located within an industrial zoning district with no residential neighbors and the kennel use is allowed, via CUP, in the Industrial Zoning District. A six foot privacy fence is proposed to secure an 1,800 SF play area; however the play area must provide sun shade. The hours of operation are proposed from 7:00 a.m. to 7:00 p.m., Monday through Friday and 8:00 a.m. to 6:00 p.m. on weekends. ACTION TO BE CONSIDERED To recommend approval of a Conditional Use Permit (CUP) to allow a full service animal care facility with overnight boarding and outdoor runs located at 3275 Sun Drive, legally described as Lot 1, Block 1, Tan Me Industrial Park 2nd Addition. If approved the following conditions shall apply: 1. This Conditional Use Permit shall be recorded at Dakota County within 60 days of approval by the City Council. 2. The total number of animals, both daycare and boarded dogs, in the facility at one time shall not exceed 130. The number of overnight boarding kennels shall not exceed 100. 3. Staff hours of operation for boarded animals shall be 6:00 a.m. and 9:00 p.m. every day. 4. Customer service hours shall be 7:00 a.m. to 7:00 p.m. Monday through Friday, and 8:00 a.m. to 6:00 p.m. Saturday and Sunday. 5. Inspection by the Animal Control Officer shall occur prior to opening. 6. The applicant shall maintain a current kennel license. 7. The premises shall be open for inspection by the City and the City shall have the right to inspect the premises. 8. All signage is subject to City Code requirements. 9. The perimeter of the outdoor play area shall be secured with a six-foot privacy fence per the Site Plan received November 2, 2009. 10. Twenty percent of the outdoor play area shall have a canopy and provide shade during the months of May through October. 11. The designated bathroom area for the animals shall be cleaned daily. z/ Location Map Eagan Boundary Right-of-way Parcel Area Park Area Budding Footprint 1000 0 1000 Development/Developer: Wagging Tails Pet Resort Application: Conditional Use Permit Case No.: 08 -CU -12-10-09 glik City oiCap Community Development Department THIS MAP IS INTENDED FOR REFERENCE USE ONLY The City of Eagan and Dakota County do not guarantee the accuracy of this information and are not responsible for errors or omissions. 2000 Feet W+ E Current Zoning and Comprehensive Guide Plan Wagging Tails Pet Resort Land Use Map Conditional Use Permit 08 -CU -12-10-09 Comprehensive Guide Plan Land Use Map Current Land Use Designation: IND Limited Industrial 600 0 600 1200 Feet s Li 4 COUNTY ROAD NO. 24 (YANKEE 0001. 4t* City otFap 3 Pares! bass map information provided by Dakota County Land Survey Department Dsomber 2005. Zoning information maintrfnsd by City Staff. THIS MAP IS INTENDED FOR REFERENCE USE ONLY The City of Eagan and Dakota County do not guarantee the accuracy of this information. W N S E -...-f Po°.o....° Zoning Mapd *Ait Location r R y .r= R_3 ®® 17 Current Zoning:PF, �4 `�' d R'' 6 44 111= 1-1 gm, Fri 1 Limited Industriali M EU 3 •ora �N�a1.1 t En um 0 10 p a 0 __ <] NE 11111.m Fi 1M�� I-•� i�ceT:�] 1iibiii . - -r ©9 ® 111 FM 111 in f� 71 Gg�o G En po r 4:a eismas �ye ..p�...�e6 -ED K/ COUNYY ROAD MO. 24 (YANKEE 0001 (YANKEE. /)y L7, k, 600 0 600 1200 foot 4 PD PD ,,r,. Comprehensive Guide Plan Land Use Map Current Land Use Designation: IND Limited Industrial 600 0 600 1200 Feet s Li 4 COUNTY ROAD NO. 24 (YANKEE 0001. 4t* City otFap 3 Pares! bass map information provided by Dakota County Land Survey Department Dsomber 2005. Zoning information maintrfnsd by City Staff. THIS MAP IS INTENDED FOR REFERENCE USE ONLY The City of Eagan and Dakota County do not guarantee the accuracy of this information. W N S E AERIAL NYld 3dVOSONVI/3115 .NOIIVN2JOJNI 31IS OprE`S2 F.6 4' 0 i 8 .RF.:_a.. 'S3JON 3dV750NV1 6001 Z'O AON SITE PLAN 3 0143731 1VI2131VN 1NVld L 9 "_- i 5 '"" PROPOSED PROJECT FOR: 3215 SUN DRIVE- KEITH OLSON EAGAN. MN SNI21 "..' IAc �" "`W - - 5�� �` b11t ONELLOL ♦VE 1✓,i4I ,'G • LLKEVLY. NN 0011 _-+---•.. +t»+vL Ue ss.....T ELLL: n7eiw ... -_ 517E PLAN .r...... - • - ... rn 10/30/09 - • _ . 7s RECEIVED NOV 0.2 2009 FLOOR PLAN NYId II 001d [1.1[-1.+1-tt. xra .LkalC.1013A30 c , = a - 1.0/0£/0I •- am rormo +urt � , - - -- ......, ItISS NI4 NY YN 3AINO Nns SLC NOS1O Hlt3N °?JOA loaf O2ld 03SOdo d ,,..,, . Yq ...... OW .._^. RECEIVED NOV 0.2 2009 FLOOR PLAN KENNEL AREA Wagging Tails Pet Resort Business Plan Location: 3275 Sun Drive Eagan, MN 55121 This stand alone Fabcon building has 20,000' of finished space with approx 8000' of office/retail and approx 12,000' of warehouse space in an I-1 zoned industrial area. The building is located off Terminal Road near Hwy 13 & Yankee Doodle Road. This location provides easy access to both I35E and I494 and is less than 10 minutes from MSP International Airport. This location is minutes from many local residents and businesses whose employees could benefit from the services we are going to provide. Our current Invisible Fence Brand dealership office location is in Northfield, MN. We recently (July 2009) closed a retail location in Shoreview, MN. With combining our staff from two locations into one we have outgrown our current location. The prospective building will offer our customers a more centralized location at Sun Drive in Eagan. Furthermore, this building will better accommodate our growing staff, growing business and our needs for expanded offerings (Pet Resort) to our customers and the residents of Eagan. Business Description: Wagging Tails Pet Resort is a full-service animal care facility dedicated to providing high quality pet care. Families with active pets and an active conscience are in search of better lives for their pets and peace of mind for themselves, causing busy animal lovers to flock to an ever-growing number of animal daycare/boarding facilities across the nation. Wagging Tails Pet resort is committed to providing a safe and fun place for dog owners to bring their fur friends while they are at work or on travels. We will also provide grooming, training and retail services making Wagging Tails Pet Resort the only facility in Eagan providing a full service destination for everything dog. We are planning on opening Jan 4t 2010 and hours of operation will be from 7a.m. to 7p.m., Monday through Friday and 8a.m. to 6p.m. Saturday and Sunday. We will be staffed from 6a.m. to 8p.m. everyday. Wagging Tails Pet Resort will occupy a 20,000 square foot facility consisting of 3 separated play areas, each with access to an 1800 square foot outdoor area. The outdoor area will be fenced with a 6' foot maintenance free privacy fence and also divided into 3 separate play areas. The ground within the fence will be covered with burlap and peat gravel. Landscaping around the fenced are will be added in June '10, after the ground thaws. The outdoor grounds will be sanitized daily. We will provide 80 individual safe and cozy sleep enclosures for our overnight guests. Our accommodations will facilitate our ability to board 100 dogs overnight and an additional 30 dogs for daycare only services. Our indoor and outdoor play areas, kennels, toys and entire facilities will be cleaned and disinfected daily in accordance with the Standards and Practices for Pet Care Services outlined by the Pet Care Service Association (PCSA) formerly American Boarding Kennel Association (ABKA). Invisible Fence of the Twin Cities, our current pet business that will also share this space, keeps dogs and cats safe at home by providing pet owners with our trusted electronic pet containment solutions RECEIVED OCT '2 12009 and professional training protocols. We provide pet owners solutions for outdoor containment as well as indoor and outdoor pet free zones. Our company not only sells superior product, but we also, provide professional installation of the product and professional training. Invisible Fence Brand offers a 99.5% success rate. Currently this business has about 30 employees. Invisible Fence Brand is the originator of the electronic pet containment industry. The brand was created over 35 years ago and now has grown to a national brand with over 300 independent dealers across the United States. Uniqueness and Differentiation: Wagging Tails Pet Resort is being created due to a need voiced over and over by many of our 20,000+ clients of Invisible Fence of the Twin Cities. Our current customers and prospects have stated, for several years, the desire for a one stop resource, providing them the services they need as dog owners. We are answering this call. We currently provide our customers a safe and free environment for their pets while at home, assisting them in being responsible pet owners. In addition, we have provided our customers with behavior modification tools and the essential training needed to make it all work. For over 20 years we have earned the respect and trust of our loyal customers, now expanding to provide them with a safe and free environment while they are away from home. Wagging Tails Pet Resort will be considered an upscale, full-service dog care facility. Services are as follows: • Overnight Care: Leave your dog for as long as necessary for 24 hour care and attention. • Day Care: Provide 3 indoor and outdoor play areas for a fun, safe atmosphere for dogs to spend the day exercising and enjoying the company of other dogs. • Pet Grooming: Provide on-site professional pet grooming services. • Dog Behavioral Courses: Provide certified dog training courses for the beginner, intermediate and advanced. • Retail Store: Provide all dog related essential and not so essential items for resale. • Special Events: Dog Play dates for the community will be held to give local dog owners the opportunity for socialization of their dogs. Holiday events with photographers and pet adoption days are just a few of many events we will be holding at location. • Pet Taxi Invisible Fence of the Twin Cities (IFTC) provides a solution to our clients' pet containment issues. We have now added on to our product line, which includes behavioral products, pet access solutions, pet wellness products, pet free zone products, and many more items. IFTC supports local humane societies and we work closely with them to give their customers an option for containing their pets in order to avoid the pets being surrendered back to the shelter. We have also started working with our local fire station by creating a Pet Oxygen Masks donation program. These masks allow firemen to have the necessary tools to help pets in the case of a fire. Invisible Fence Brand is the national sponsor of the AKC Responsible Dog Ownership Day. We work with local AKC affiliations through local events to provide awareness for responsible pet ownership. 7 7 RECEIVED OCT 2 12069 Growth and Profitability: The pet industry is one of the fastest growing segments of the American economy. It currently ranks as the second fastest growing retail sales category after electronics, Business Week, August 6m, 2007. Americans now spend nearly $41 billion a year on their pets. That's double what was being spent just a decade ago. And the market is expected to grow to reach $52 billion in the next two years. The amount we spend on our pets has exceeded what we spend on movies, playing video games and listening to music combined. The dramatic increase in the market has pushed consumers to become more and more demanding in seeking out high quality services and products for their "fur babies". As the market continues to expand, we have recognized the absence of businesses providing multiple services for the middle -to -upper market in the Twin Cities area. To address this market need, Wagging Tails Pet Resort was formed for the express purpose of providing pet owners a location to fulfill a variety of their pet care needs. As the owner of Invisible Fence of the Twin Cities since 1993, I have been able to grow the business from approximately 1200 customers to 20,000+ customers. We have gone from approximately 250 new installs and year to 1200 installs a year. Advertising, especially locally, has been a large part of our growth strategy. We will continue to spend locally on billboards, pet events, sponsorships and many other local activities and programs. We strive to provide excellent customer service because we are aware that our customers invest in our services and they also consider their pets a part of their family. Due to our growth, we have been able to expand our business and continue to hire new talent. With the opening of our new Pet Resort, we will be creating new jobs opportunities for the residents of Eagan. Management and Ownership Wagging Tails Pet Resort will be owned and operated by Keith and Michelle Olson, a husband and wife team. Keith has owned and operated several successful businesses over the past 18 years, including Invisible Fence of the Twin Cities. Keith's Invisible Fence dealership has achieved President's Club Status 12 times in the past and is currently one of the top 10 dealers in the nation. Michelle has worked 7 years at Western Pet Containment, a distributor for Invisible Fence Brand. With this company, she was the Director of Marketing working with independent business owners in 5 western states developing marketing plans to grow their business. She has also helped run the distributor company owned stores, developing Sales Representatives and managing the day to day office organization. Keith and Michelle are a great team and have a combined 25 years experience in the pet industry. RECEIVED OCT 2 '1 2009 RECEIVED NOV Q2 2109 11-1-09 RE: CUP for Wagging Tails Pet Resort 3275 Sun Drive Eagan, MN (o8 -CU -10-12- 09) As per letter from Sara Thomas dated 10-27-09, additional items needed by City of Eagan are as follows. • Please see attached detailed interior plans for building. Our phase 1 plan for proposed opening in Jan 2010 will be to complete the outdoor privacy fence, complete the 8' wall separating the Invisible Fence Warehouse area from the future Kennel Area/Indoor Play areas and purchase 4o prefab Luxury Suite Kennels. We are looking into several different companies that manufacture these pre -built kennels. These high end $900+ each kennels are made in sizes 4' wide x 5' & 6' length. These custom built kennels are made of high strength plastics and powder coated metal or stainless steel. Some of the kennels will allow 2 family member dogs to stay together. Other kennels will have removable panels, in order to, increase the size to accommodate multiple dogs from the same family. This option can reduce any anxiety that the dog may feel while staying at our boarding facility. Our plan would be to add more of these kennels and also add an Ultra Premium kennels (bigger with additional amenities) in future as needed until a maximum target of 100 overnight dogs is reached. Also included on our plan is a proposed wash tub in the grooming area and a 2nd wash tub for expansion of the grooming area if needed. • We have included on the drawing a future (summer 2010) proposed monument sign, which will be under 7' tall. Also, we have included on the drawing a future sign on the building. We will be changing a small awning sign over the front door that now reads Tan Me. • The plan also shows retail area (approx 900 square feet, less than 5% of total finished area of building). This area will include a check-in area for Wagging Tails Pet Resort, seating for waiting customers, a place to test equipment for Invisible Fence Brand, as well as, an area to display and sell our Invisible Fence products and other additional products. Future plans include the selling of different brands of pet food. Our current retail business represents less than 3% of our business and is less than $5K per year. We would anticipate some retail growth over the $5K per year at the Sun Drive location but expect it to remain a small % (less than 5%) of our overall business. • The outdoor play areas face east/southeast and our 25' high building should provide afternoon shade during the hottest part of summer days. If additional shade is needed we will add umbrellas or a canopy as needed. Please let us know if additional information is needed. Sarah Thomas Planner City of Eagan Ms. Thomas, We, Tim Quady and David Leak - the owners of Blue Rhino Studio and the building located at 3277 Sun Drive, are sending this letter to formally voice our concerns over the proposed location of the outdoor play areas at Wagging Tails Pet Resort and the very real potential of ongoing dog barking and the affect it will have un us. To begin with, we have spoken to both the owner Keith Olson and Jody the location manager. They are extremely nice people who were open to discussing their schedule and plans, earnestly offering to be as accommodating as possible to address our concerns. Having talked to them and read their business plan we feel they will do quite well and understand their desire to be located in this specific area. As small business owners ourselves, we were drawn to this area of the south metro for the convenience it offers us, our employees, and our clients, not to mention the easy access to other businesses and materials used in our daily operations. As investors, we chose to build here not only because of the easy access of the location, but equally for the natural landscape, attractiveness of the land, and general tranquility of the setting compared to most light industrial areas. We felt very strongly that if we were to outgrow our space and decide to sell or lease our investment would be secure as the generally peaceful surroundings make our building very desirable in comparison to any other location we considered. In short, the surroundings enhance the value of the building. Our concerns with Wagging Tails Pet Resort are only centered on the Conditional Use Permit and how the noise of barking dogs inevitably associated with the proposed outdoor play areas might affect our daily business, our ability to easily lease this space if we chose to, and our overall property value. The proposed fence line of the area is planned to be 5' from our lot line. This puts the fence location only 24' from our parking area where our employees and clients enter and exit their vehicles. Our concern during daily operations is not only the potential nuisance for our employees of dog barking triggered by the sound of approaching cars, car doors, and people talking, but with this being the first impression our clients will have of their visit to Blue Rhino Studio. Being a custom art studio, we are continually working with very high-end natural history museums, visitor centers, and architectural firms from across the country. Although we have immense pride in our product, it is imperative that we enhance what we do by projecting the best image possible. In our business reputation and word of mouth are everything. We are concerned that multiple barking dogs may be the first and last impression a client will have of their visit to our studio. Our goal is to project a positive and professional image from the time they arrive to the time they leave. It has only been one week since we learned of the proposal we have tried to do as much homework on the situation as possible to see how valid our concerns are. We have discovered the following; • We were unable to locate any other instance in which an exterior play area, dog run, or kennel is located as close to what is proposed at Wagging Tails. Indeed, what we RECEIVED NOV 1 S 2009 iia discovered is anything comparable is either located hundreds of feet away or on an opposing side of the building as any usual vehicle or foot traffic. • We were unable to find any comparable business that has the potential of housing up to 130 dogs at one time. • The neighboring businesses to Dog Day Getaway in Apple Valley had concerns very similar to ours before they opened, but because their outdoor area is located in the rear of the building, directly opposite of the parking area and one empty suite away, they only hear barking during the very few times during the week they are in their receiving area unloading a truck. They consider it a "quirk" of their neighbor's business, but not a nuisance. • In contrast, LaFonda's, the neighboring restaurant to Peanuts Place dog care center is located over 150' away from their outdoor area with a large bank of trees between the two. The owner and multiple employees stated a tremendous impact from barking dogs. They find fewer people are using their outdoor patio and some of those who do tend to "bark back" at the dogs. Of more concern, the neighboring tenant to Peanuts stated that it is so troublesome that he will most likely not renew his lease. Even though the owner of Peanuts Place works hard to keep the noise under control, it is an expected part of the business. • Also in contrast, Four Paws in Burnsville is located on approximately 5 acres with all of their external play areas as distant from any neighbors as possible. This, like every other comparable business we found, was done in an effort to eliminate any potential noise complaints as possible. We have discussed these concerns with the owner and manager of Wagging Tails and they were very receptive. They offered explanations and additional precautions making us feel they will work hard to eliminate any potential issues. Also, we want to be very clear that we are very supportive of having their business next door. They have clearly done a lot of research and have plans they feel will set them apart from similar businesses. We have no concerns whatsoever about anything other than what happens in the outdoor play areas. Still, the day care and boarding of dogs is a new business to Wagging Tails. They know that dogs bark and they expect barking to be triggered by cars, car doors, and the sound of arriving people. Their thought is that they will be able to stop the barking very quickly whenever it occurs. Their solutions for the potential barking issues seem plausible, but are not proven. If the outdoor area is located where it is currently proposed and does become a problem for our daily operations, image portrayed to clients, ability to lease our space in a timely manner for optimum rate, or value of our property what can be done? We are very hopeful that our concerns prove to be invalid, but have not found any compelling evidence to completely dispel our fears. We have, however, learned enough to know if the outdoor play areas were located on the opposing side of the building we most likely wouldn't be writing this letter. The proposed location for the outdoor area is clearly the most logical and cost effective considering the layout of the building. We understand why placing this space anywhere else hasn't ever been seriously considered. Also beneficial to them, the proposed location is nearly as great of a distance from their own parking area as possible as well as the farthest they can locate these areas from their own office space. Obviously our difficulty with the proposed play location is that it is nearly as close to our business as it possibly could be. In short, any disturbance from an outdoor play area will affect us more than anyone, even Wagging Tails themselves. 8L3 RECEIVED NOV 1 9 yODg We understand there is to be noise expected in any industrial area, and although our space is loud from time to time, any serious noises from us or any of our neighbors are kept indoors and very rarely affect anyone outside their walls. We would never assume we could move any of our loudest operations to a fenced area outside. Again, our concerns may be based on a lack of knowledge and we be assuming a "worst case" scenario, but we have had an extremely short time to learn anything about this type of business. What we have found is little evidence other than the faith of the Wagging Tails that this won't be detrimental in some capacity to our business and eventually us financially. For us, there is no upside to their outdoor play area. It will assuredly be somewhere between a nuisance and serious problem. Everything else about their business plan doesn't affect us or any of the neighboring businesses in the least. In fact, many of our employees are dog owners and may find their business a benefit to thein personally. Other than the outdoor play location we are excited to have what seem to be such kind and concerned neighbors. We would like to know from the city what plans have been made to deal e. We with h beh this hif it do have oes become a serious issue that affects our business and property our fears be proven unfounded, but in the case they are not we want to know what the city will be able to do. Thank you for your attention to this matter. Timothy Quady Owner Blue Rhino Studio 3277 Sun Drive Eagan, MN 55121 04.1_ RECEIVED NOV 1 9 200 TMI COATINGS City of Eagan Attn: Sarah Thomas 3830 Pilot Knob Road Eagan, MN 55122 651-675-5696 651-675-5694 Fax RE: Wagging Tails Pet Resort Dear Sarah: PAINTING & RESTORATION CONTRACTORS 3291 Terminal Drive St. Paul. Minnesota 55121 P: 651 452 6100 F: 651 452 0598 RECEIVED NOV 2009 November 24, 2009 tmicoatings.com I have concerns over the proposed location of Wagging Tails Pet Resort. I have invested a considerable amount of money in TMI Coatings' (TMI) building and property in order to create and maintain a professional business environment. Approximately 40 evergreen trees were added to our site; a grassy courtyard has been constructed and a considerable amount of money has been spent on landscaping in order to make the Terminal Drive industrial area more aesthetically pleasing. Chapter 13, Section 13.01, Item 5 of the Eagan City Code states its purpose is "to protect and conserve the value of land throughout the city and the value of buildings and improvements upon the land and to minimize the conflicts among the uses of land and buildings". I am concerned that dogs barking will negatively impact my property value and professional image. What noise mitigation measures will be taken by the proposed kennel operation? TMI has a large fenced lot in which we keep valuable equipment. Each year, we invite the Eagan police to visit our property and make suggestions as to how we can improve our security measures. I am concerned with the possibility of people walking their dogs along TMI's fence line, seeing the equipment and accessing the secured area during non- business hours. There are other kennels in close proximity to the proposed location of the Wagging Tail Pet Resort and another pet kennel business may not serve the community needs. There is a brand new dog kennel located across the river near the MSP airport; this dog daycare facility houses 96 dogs, 30 cats and 15 small animals. American Boarding Kennels has a kennel on Highway 13 between County Road 11 and Nicollet Avenue; this location also provides grooming and boarding. Woof Dah is constructing a new kennel on Highway 13 just south of County Road 11, located 5 miles from Sun Drive. There are five dog kennels located south of the river within five miles of the proposed Wagging Tails Pet Resort (see attached list). lac Another of TMI's concerns is increased traffic on Terminal Drive and Sun Drive. The Eagan City Code states that it is "to provide the most beneficial relationship between the uses of land and buildings and the circulation of traffic throughout the city having particular regard to the avoidance of congestion in the streets and highways, and the pedestrian traffic movements appropriate to the various uses of land and buildings and to provide for the proper location and width of streets and building line". We feel that this part of the City code would be compromised with the addition of the Wagging Tails Pet Resort. With the addition of a doggy day care kennel there would be a significant increase in daily vehicle and foot traffic in this area. Additionally, there is concern as to how the kennels will be cleaned and maintained. How will the waste water and waste be disposed of? What precautions will be taken to insure that the waste is not disposed of as runoff and thereby polluting our adjoining property or the river? What will be done to reduce or eliminate the odor of having up to 130 dogs in an otherwise clean and odor free industrial park? Is there a considerable investment being made to the interior of the building to install protective coatings on the floors and up the walls on the kennels located indoors? Will trenches and drains be properly protected from the dog, cat and small animal urine and feces? While I own several pets including a dog, I don't think this is an adequate setting for this type of business. Chapter 11, Section 11.40, Subdivision 4C states, "Planning Commission shall recommend a conditional use permit...only if it finds that such use at the proposed location...C. Will be designed, constructed, operated and maintained so as to be compatible in appearance with the existing or intended character of the general vicinity and will not change the essential character of that area, nor substantially diminish or impair property values within the neighborhood." I would propose Wagging Tails Pet Resort find another suitable location in Eagan. This is not a traditional industrial park business nor is it well suitable amongst the other Eagan industrial businesses. Tracy M. Gliori eh/tg/corr/eagan l 1.24.09(5) Businesses offering dog kenneling and/or boarding south of the river within 5 miles of the proposed Wagging Tails Pet Resort. Pilot Knob Animal Hospital 4145 Knob Drive Eagan, MN 55122 Companion Animal Hospital 1321 Duckwood Drive Eagan, MN 55123 Four Paws Pet Resort 4020 Old Sibley Memorial Highway Eagan, MN 55122 Al's Boarding Kennels 2085 Valencour Cir. St. Paul, MN 55120 Peanut's Place 1904 Shawnee Road Eagan, MN 55112 3.60 miles away 2.47 miles away 4.37 miles away 3.45 miles away 1.83 miles away Sarah Thomas From: Tracy Gliori [tgliori@tmicoatings.com] Sent: Monday, November 23, 2009 4:00 PM To: dave.Ieak@rhinocentral.com; Sarah Thomas Cc: Guido Gliori Subject: RE: Advisory Planning Commission Agenda and Staff Report I'm not in favor of a kennel business in the area due to security, noise pollution and the unprofessional nature of the business. Tracy M. Gliori TMI Coatings, Inc. 3291 Terminal Drive St. Paul, MN 55121 tglioriCa)tmicoatings.com 651-452-6100 651-452-0598 fax www.tmicoatinqs.com From: David Leak[mailto:dave.Ieak@rhinocentral.com] Sent: Monday, November 23, 2009 3:12 PM To: Tracy Gliori Subject: FW: Advisory Planning Commission Agenda and Staff Report Hi Tracy, Thanks for taking the time to speak with me on the phone. I appreciate your concerns and how this will negatively affect our property values with up to 130 barking dogs. I have attached a copy of the agenda. Please let me know what you think. If you are interested, I can fill you in on what else we have found. Thanks, Dave Leak Blue Rhino Studio 3277 Sun Drive Eagan, MN 55121 Ph 651-287-0900 From: Sarah Thomas [mailto:SThomas@cityofeagan.com] Sent: Friday, November 20, 2009 9:35 AM To: Timothy Quady'; 'David Leak' Subject: FW: Advisory Planning Commission Agenda and Staff Report C?? RECEIVED NOV 24 2009 Please find the attached APC agenda and staff report for Wagging Tails Pet Resort. Thanks, Sarah Sarah Thomas 1 Planner 1 City of Eagan City Hall 1 3830 Pilot Knob Road 1 Eagan, MN 55122 1 651-675-5696 1 651-675-5694 (Fax) sthomas(a)_citvofeaoan.com City of Ea all THIS COMMUNICATION MAY CONTAIN CONFIDENTIAL AND/OR OTHERWISE PROPRIETARY MATERIAL and is thus for use only by the intended recipient. If you received this in error, please contact the sender and delete the e-mail and its attachments from all computers. From: Julie Strid Sent: Friday, November 20, 2009 9:33 AM To: 'ifrivervalley@aol.com' Cc: Sarah Thomas Subject: Advisory Planning Commission Agenda and Staff Report Good Morning, I have attached the Advisory Planning Commission agenda and staff report for the meeting held on Tuesday November 24, 2009 @ 6:30. If you have any questions please let either myself or Sarah Thomas know. Thank you, Julie Strid Julie Strid I Planning Aide I City of Eagan City Hall 13830 Pilot Knob Road' Eagan, MN 551221651-675-56861651-675-5694 (Fax) 1 jstridt citvofeagan.com *City of Bgkan THIS COMMUNICATION MAY CONTAIN CONFIDENTIAL AND/OR OTHERWISE PROPRIETARY MATERIAL and is thus for use only by the intended recipient. If you received this in error, please contact the sender and delete the e-mail and its attachments from all computers. j Please consider the environment before printing this email. =9 Please find the attached APC agenda and staff report for Wagging Tails Pet Resort. Thanks, Sarah Sarah Thomas 1 Planner j City of Eagan City Hall 1 3830 Pilot Knob Road 1 Eagan, MN 55122 1 651-675-5696 1651-675-5694 (Fax) 1 sthomas(acitvofeagan.com City of Evan THIS COMMUNICATION MAY CONTAIN CONFIDENTIAL AND/OR OTHERWISE PROPRIETARY MATERIAL and is thus for use only by the intended recipient. If you received this in error, please contact the sender and delete the e-mail and its attachments from all computers. From: Julie Strid Sent: Friday, November 20, 2009 9:33 AM To: 'ifrivervalley@aol.com' Cc: Sarah Thomas Subject: Advisory Planning Commission Agenda and Staff Report Good Morning, I have attached the Advisory Planning Commission agenda and staff report for the meeting held on Tuesday November 24, 2009 @ 6:30. If you have any questions please let either myself or Sarah Thomas know. Thank you, Julie Strid Julie Strid Planning Aide City of Eagan City Hall 1 3830 Pilot Knob Road 1 Eagan, MN 55122 1 651-675-5686 1651-675-5694 (Fax) 1 jstridacityofeagan.com City of Eta' THIS COMMUNICATION MAY CONTAIN CONFIDENTIAL AND/OR OTHERWISE PROPRIETARY MATERIAL and is thus for use only by the intended recipient. If you received this in error, please contact the sender and delete the e-mail and its attachments from all computers. Please consider the environment before printing this email. CONCERNS OVER PROPOSED CONDITIONAL USE PERMIT VOICED BY TIM QUADY AND DAVID LEAK; OWNERS AND OPERATORS OF ADJACENT PROPERTY 3277 SUN DRIVE, BLUE RHINO STUDIO. City of Eagan Advisory Planning Commission Meeting November 24, 2009 SUMMARY OF CONCERNS Tim Quady and David Leak - the owners of Blue Rhino Studio and the adjacent property located at 3277 Sun Drive - believe if the proposed location of the outdoor play areas at Wagging Tails Pet Resort were to be approved it would have a negative affect on our daily operations and property value due to; • Ongoing barking 7 days a week, 365 days a year • Potential smells from dog urine and feces • Additional barking caused by proximity to Blue Rhino Studio's daily operations • Perception garnered by clients visiting Blue Rhino Studio • Diminished value of property and impaired ability to lease BACKGROUND • David Leak and Tim Quady acquired the undeveloped property at 3277 Sun Drive from Mr. Woods in 2005. • The property was developed requiring extensive land preparation, construction of a new building, landscaping, parking, etc., for a total cost exceeding $1,300,000. • The site was selected for its "non -industrial park" feel. It has a relatively secluded feel and tranquil setting. • These attributes justified the expenses of additional land work required prior to building from an investment standpoint as the surroundings make this area more desirable. • Blue Rhino Studio has occupied the facility for less than four years. PROPOSED OUTDOOR PLAY AREA • The proposed fence line of the area is planned to be 5' from the Blue Rhino Studio lot line. • The proposed fence location is only 24' from our parking area where our employees and clients enter and exit their vehicles multiple times throughout the day. CITY CODE City Code Chapter 11, Section 11.40, subdivisions 4C and 4D state that the Conditional Use Permit will only be issued if the proposed WILL NOT; • "...substantially diminish or impair property values within the neighborhood" • "Will not involve uses... that will be hazardous to any persons, property, or the general welfare because of excessive production of noise... or odors" We contend that the location of the play area will not only diminish our property value, but also be an ongoing nuisance for ourselves and our employees as well as having a negative impression on our clients. RECEIVED NOV 24'2009 ADDITIONAL CONCERNS AND REFERENCE In the very short time we have known of the proposed outdoor play area we have discussed the issue with multiple commercial realtors, a business evaluator, multiple canine daycare and kennel operators, and multiple neighboring businesses. ALL of our findings are consistent and include the following; • Nation-wide, the number one noise complaint is barking dogs. • The vast majority of dog day cares, spas, and kennels are located in secluded areas, areas buffered by large amounts of foliage, and areas near major highways that create a fair amount of ambient noise. • We were unable to locate ANY other instance in which an exterior play area, dog run, or kennel is located as close to what is proposed at Wagging Tails. Indeed, what we discovered is anything comparable is either located hundreds of feet away or on an opposing side of the building as any usual vehicle or foot traffic. • Any disturbance from the proposed outdoor play area will be closer to our daily operations than any other business, even Wagging Tails themselves. • ALL operators and workers at related dog facilities we spoke to agree that, "All dogs bark" and is to be fully expected. "Controlling" the behavior would be to dispel it quickly once it begins at best. • ALL operators and workers at related dog facilities we spoke to agree that the smell will eventually be an issue. Perhaps not daily, but definitely occasionally. • The only business that did NOT feel this area would have a clear negative effect on our daily business and property value was Wagging Tails. • Wagging Tails is the only canine centered business we spoke to who has NO EXPERIENCE in boarding dogs or running a doggy daycare. • Although no realtor or business evaluator was willing to put a specific percentage to it, ALL that we spoke to said the proximity to an outdoor play area would DEFINITELY diminish our property value and/or making leasing much more difficult. • A "ballpark" number that was assumed by one commercial realtor as an example was "perhaps close to 5%". Five percent of $1,300,000 is $65,000. One percent of $1,300,000 is $13,000. • Bill Herber of Shenehon Company (a business valuator) said although he fully expected a diminished value, the real estate division of his company could research and write a comprehensive neutral report given 2 — 3 months and for a cost of $5,000 - $10,000. • If there are no concerns about the affect of an outdoor play area, why was the opposing side (farthest from any other business) not originally considered? This is the side where their own offices are located. 9.3 Although our monetary concern is with the value of our property, our most immediate concern is the impression our clients will have of their visit to Blue Rhino Studio. Being a custom art studio, we are continually working with very high-end natural history museums, visitor centers, and architectural firms from across the country. Although we have immense pride in our product, it is imperative that we enhance what we do by projecting the best image possible. In our business reputation and word of mouth are everything. We are concerned that multiple barking dogs may be the first and last impression a client will have of their visit to our studio. Our goal is to project a positive and professional image from the time they arrive to the time they leave. We would never assume it appropriate to move any disruptive activities from our business outside. PLEASE SEE THE ATTACHED PHOTOS DEPICTING; • Aerial views of the proposed location of the outdoor play areas and their proximity to Blue Rhino Studio • Aerial views of similar local kennel or doggy daycare businesses and their proximity to neighboring businesses. • Photos giving a visual example of the distance between our operations and the proposed fence line. Timothy Quady and David Leak Owner Blue Rhino Studio 3277 Sun Drive Eagan, MN 55121 ql AGENDA CITY OF EAGAN REGULAR MEETING OF THE ECONOMIC DEVELOPMENT AUTHORITY EAGAN MUNICIPAL CENTER DECEMBER 1, 2009 A. CALL TO ORDER B. ADOPT AGENDA C. CONSENT AGENDA 1. APPROVE EDA Minutes D. OLD BUSINESS E. NEW BUSINESS 1. CEDAR GROVE REDEVELOPMENT DISTRICT — Ratify Amended TIF Development Agreement with Lennar Corporation for the Nicols Ridge Development 2. NORTHEAST EAGAN REDEVELOPMENT DISTRICT — Consider Request for Assessment Agreement for Certain Costs for McGough Development 3. AUTHORIZE Submittal of 2010 CDA Redevelopment Incentive Grant for Cedar Grove Redevelopment Project Costs F. OTHER BUSINESS G. ADJOURN Agenda Information Memo Eagan Economic Development Authority Meeting December 1, 2009 NOTICE OF CONCURRENT ACTIONS The Council acting as the Board of Commissioners of the Economic Development Authority ("EDA") may discuss and act on the agenda items for the EDA in conjunction with its actions as a Council. A. CALL TO ORDER ACTION TO BE CONSIDERED: To convene a meeting of the Economic Development Authority to run concurrent with the City Council meeting. B. ADOPT AGENDA ACTION TO BE CONSIDERED: To adopt the Agenda as presented or modified. C. CONSENT AGENDA ACTION TO BE CONSIDERED: To approve the Consent Agenda as presented or modified. 1. APPROVAL OF MINUTES — The minutes of the November 17, 2009 EDA meeting are enclosed on pages MD 451 q9 MINUTES OF A MEETING OF THE EAGAN ECONOMIC DEVELOPMENT AUTHORITY Eagan, Minnesota November 17, 2009 A meeting of the Eagan Economic Development Authority was held on Tuesday, November 17, 2009 at the Eagan Municipal Center. Present were President Maguire, Commissioner Bakken, Commissioner Tilley, Commissioner Hansen and Commissioner Fields. Also present were Executive Director Hedges, Community Development Director Hohenstein and City Attorney Dougherty. ADOPT AGENDA Commissioner Fields moved, Commissioner Tilleseconded a motion to approve the agenda as presented. Aye: 5 Nay: 0 CONSENT AGEND Commissioner Bakken moved, Commissioner Tilie "seconded a motion to approve the Consent Agenda as presented. Aye: 5 Nay: 0 1. It was recommended to approve the minutes of the October 20, 2009 EDA meeting as presented. OLD BUSINESS There were no Old Business items. NEW BUSINESS CEDAR GROVE REDEVELOPMENT DISTRICT RESOLUTION REGARDING THE HEARING OFFICER'S DECISION REGARDING. RELOCATION ASSISTANCE TO MEDITERRANEAN CRUISE Community Development Director Hohenstein discussed the findings and recommendations from the Administrative Hearing Officer for the relocation benefit appeal of the Mediterranean Cruise Cafe. Commissioner Tilley moved, Commissioner Hansen seconded a motion to adopt a resolution accepting the Finding of Fact, Conclusions of Law and Recommendations from the Administrative Hearing Officer, as modified by the EDA, for the relocation benefit appeal of the Mediterranean Cruise Cafe. Aye: 5 Nay: 0 /00 OTHER BUSINESS There were no Other Business items. ADJOURNMENT Commissioner Fields moved, Commissioner Tilley seconded a motion to adjourn the meeting at 8:50 p.m. Aye: 5 Nay: 0 Date Thomas Hedges, /b( xecutive Director Agenda Memo Eagan Economic Development Authority Meeting December 1, 2009 New Business 1. CEDAR GROVE FINANCING — NICOLS RIDGE CONCEPT REVISION AND FINANCIAL SETTLEMENT ACTION TO BE CONSIDERED: To approve an Amendment of the TIF Development Agreement to implement the proposed settlement with Lennar regarding the Nicols Ridge project in the Cedar Grove Redevelopment District and authorize the EDA Officers to execute the agreement. FACTS (New information in bold): • The Nicols Ridge Project in the Cedar Grove Redevelopment District was originally brought forward by Delta Homes and the 230 unit residential project was approved by the City Council on October 16, 2001. The EDA entered into a TIF Development Agreement with Delta on December 2, 2002. Subsequently, Delta entered into an agreement to sell its property to U.S. Homes/Lennar and requested that the EDA approve an assignment of the Development Agreement to Lennar. That request was approved by the EDA on June 3, 2003 and Lennar assumed responsibility for the project. • Under the TIF Development Agreement, Lennar Corporation was to complete the project in three phases. The deadline for the substantial completion of Phase I (88 units) was December 31, 2006, Phase II (66 units) was December 31, 2007 and Phase III (76 units) was December 31, 2008. In exchange for completion of the project by those times, the EDA agreed to reimburse the developer by phase for certain assessments and fees associated with the project from the TIF revenues created by the development. Those costs were outlined in Exhibit D of the Development Agreement, which is attached. • Lennar completed the 32 townhome units and 14 of the condominium units anticipated in Phase I, but as the condominium market began to decline in 2005, the developer discontinued development of additional condominiums at the property, but did proceed with 16 of the townhomes planned for Phase II. As a consequence, 62 of the units originally proposed for the project have been built. • In consideration of the shifting and declining market, Lennar approached the City in late 2006 requesting a concept review for a modified redevelopment scenario for the Nicols Ridge project and a revision of the TIF development agreement terms to resolve the anticipated default status. The request was to permit the developer to replace the remaining condominium buildings in the original plan with additional townhomes and to revise the phasing schedule to accommodate the change in the housing market. • The request was heard by the EDA at the February, 2007 Council workshop. The EDA/Council expressed a willingness to consider a revision of the development plan to be based on a modified site plan and a more market -supportable townhouse product, provided the general quality of construction and architecture met the standards set by the Nicols Ridge units already built and a modification of the Development Agreement could be negotiated. The matter of the financial settlement was referred to the Finance Committee for review. • In March, 2007, the Finance Committee indicated that it recognized the change in the condominium market and that it was primarily interested in maintaining unit counts and valuation for the area. Staff was given direction to continue to meet with Lennar officials to solicit more information and to work out potential mutually beneficial solutions. • Through the course of those discussions, it became apparent that Lennar was not in a position to develop a housing mix with sufficient unit value or density to offset the reduction in condominium units to fully accomplish the direction of the Committee. In discussing the range of alternatives, though, Lennar had identified a potential option under which it would complete the eastern portion of the site with a townhouse development and sell the western portion of the site to a third party for separate development, potentially with a different housing product and density. • In order to maximize the potential for the City to attract a higher density product with greater overall value for the remainder of the development area, a solution was proposed under which Lennar would transfer the Gonyea parcel to the City so that the western portion of the site could be marketed to and completed by another development partner. The western portion of the property, if the Gonyea parcel were assembled with the City owned property, would total 8 acres. • Basic terms were negotiated with Lennar by late 2007 and consideration by the EDA was tentatively set for early 2008. Unfortunately, at about that time, the company began a contraction that resulted in changes in the two different changes in the principle contact for the City. As Lennar staffing stabilized, substantial negotiations were reestablished earlier this year. • Over the same period, the project has exceeded the deadlines in the TIF Development Agreement for all three phases of the development and, in the event that the EDA were to declare a default, Lennar could face liquidated damages for all phases/units not completed. • In recent months, company representatives have responded constructively to the basic framework of the previous settlement proposal. In light of the potentially greater costs to the company if a default action were initiated, staff pursued a modification of elements of the term sheet exchanged in 2007. A tentative agreement on settlement terms has been reached, which was reviewed with the Finance Committee at its meeting on October 6. • The tentative settlement terms are: • The developer will propose and the City will consider approval of the completion of the eastern portion of the development site as a 59 unit townhouse development (62 units built to date plus 59 for 121 units total). • The City will discontinue TIF payment of cash parks and trails dedication that has been required by the current development agreement and the developer will take on that obligation at current rates ($3,458/unit) for the 59 units proposed to be built ($204,022). • The developer and the City will enter into an assessment agreement for the costs of the Cedar Grove Parkway pedestrian trail ($130,800) and the outstanding trunk utility cost for a portion of the developed site ($50,522). • The developer will transfer the Gonyea parcel in the western portion of the project area (originally purchased by Lennar at $559,232) to the City. In exchange, the City will release the developer from the accumulated liquidated damages and the City will pay the /03 development's remaining assessments for projects 800R and 759R (59 units at $4,486 for $264,674). • The settlement will be contingent upon the Council's approval of the revised development proposal through the ordinary development review process. • All obligations created by any new development approvals will be secured by a new letter of credit. • Lennar representatives contacted City staff on October 1 and indicated that Lennar Corporate had approved the settlement terms, pending approval by the City. • On October 6, the Finance Committee reviewed the proposal and requested additional information regarding the TIF revenue projections for the revised development versus a no - build scenario. Based on the assumptions Lennar is using for the project, the development of the east half of the project area would generate an additional $794,000 in tax increment over the life of the district. If the west half of the project area were sold to a third party developer who built a 109 unit project (resulting in 230 units over the entire site), the western portion would generate an additional $1,040,000 in increment. If a future project on the western portion of the site include more than 109 units, the increment could be greater. In comparison, it is uncertain if or when the property would see new construction if liquidated damages were pursued instead of a settlement. • On the basis of the information provided, the Finance Committee recommended that the EDA approve the settlement proposal. At its meeting of October 20, 2009, the EDA directed staff and the City Attorney to prepare the necessary agreements for execution by Lennar and subsequent ratification by the EDA. The agreement is in order for consideration by the EDA at this time. ATTACHMENTS: • Amended development agreement enclosed on pages /05hrough >o� SECOND AMENDED AND RESTATED DEVELOPMENT AGREEMENT This Second Amended and Restated Development Agreement (hereinafter "Agreement") is made and entered into as of this day of , 2009, by and between the Eagan Economic Development Authority, a Minnesota municipal corporation (hereinafter the "EDA"); the City of Eagan, a Minnesota municipal corporation (hereinafter the "City"); and U.S. Home Corporation, a Delaware corporation (hereinafter the "Developer"). The EDA, City and Developer are collectively referred to as the "Parties"). WHEREAS, the EDA, City and Delta Development, Inc. (hereinafter "Delta") entered into a Development Agreement dated December 2, 2002 (the "Delta Agreement") to allow for a three-phase development known as "Nicols Ridge" (Phase I consisting of 88 units; Phase II consisting of 58 units; and Phase III consisting of 84 units); and WHEREAS, Developer assumed the obligations of Delta under the Delta Agreement; and WHEREAS, the City and the EDA and Developer entered into an Amended and Restated Development Agreement dated April 1, 2004 (the "Amended Agreement") and also entered into an Amendment to the Amended and Restated Development Agreement on February 21, 2006 (the "First Amendment"). The Delta Agreement, Amended Agreement and First Amendment are collectively referred to as the "Development Agreement;" and WHEREAS, the Development Agreement imposes certain liquidated damages against Developer for the failure to complete construction of the required number of units in each phase; and WHEREAS, due to the change in the real estate market, the Developer has requested; and the City and EDA have agreed, to amend the Development Agreement to address the liquidated damages, the payment of assessments, transfer of property and other outstanding issues, all upon the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the EDA, the City and the Developer, the parties hereby represent, covenant and agree as follows: 4264695v8 1. AMENDMENT OF THE DEVELOPMENT AGREEMENT. This Agreement hereby amends and supplements the Development Agreement. To the extent of any inconsistency between this Agreement and the Development Agreement, the terms of this Agreement shall apply. 2. HOUSING UNITS TO BE CONSTRUCTED. Developer has provided a Concept Plan to construct 59 total housing units as shown on the plan attached hereto as Exhibit "A" (the "Revised Development Plan"). Developer shall use good faith efforts to submit a development application for consideration by the City of Eagan Planning Commission and City Council within thirty (30) days following approval of this Agreement by /66- 4264695v8 the City Council. Nothing in this Agreement shall be deemed an approval of the Revised Development Plan. 3. ELIMINATION OF SUBSIDY/PAYMENT OF PARK DEDICATION FEES. Under the Development Agreement, the City and EDA previously agreed to provide a subsidy for each residential unit constructed by Developer for City assessments associated with Public Improvement Projects 800R and 759R as well as city fees relating to trunk utility charges and park and trail dedication fees. The Developer shall not receive any subsidy under this Agreement for units included within the Revised Development Plan; and shall pay to the City, contemporaneously with the issuance of each building permit, the sum of $3,458.00 per unit for park dedication fees for each unit included within the Revised Development Plan, for a total of $204,022.00 (assuming a total of 59 units). 4. ASSESSMENTS FOR PUBLIC IMPROVEMENT PROJECT 888. Developer is a party to that certain Right of Entry, Waiver of Objection to Special Assessment and Consent to Special Assessment In Connection With Eagan City Project No. 888 dated June 29, 2006 and recorded with the Dakota County Recorder on August 1, 2006 as Document No. 2452663 (hereinafter the "Assessment Agreement") pertaining to the construction of the trail adjacent to Cedar Grove Parkway and the corresponding special assessments levied against Developer's property. This Agreement hereby replaces the Assessment Agreement and the Developer shall pay to the City, the sum of $130,800.00 for its share of the trail costs. This shall be paid in accordance with the terms of the Assessment Waiver attached hereto as Exhibit "B." 5. REIMBURSEMENT FOR TRUNK UTILITY ASSESSMENTS. In anticipation of the Developer performing and constructing all of the units proposed in the Development Agreement, the City provided payment of all trunk utility charges. The Developer hereby agrees to reimburse the City the sum of $50,522.00 for the trunk utility assessment. This shall be paid in accordance with the terms of the Assessment Waiver attached hereto as Exhibit "B." 6. CONVEYANCE OF PROPERTY. Contemporaneously with the execution of this Agreement, the Developer and EDA shall enter into a purchase agreement in the form and text of Exhibit "C" attached hereto whereby the EDA agrees to acquire certain property owned by the Developer all upon the terms and conditions contained therein. 7. RELEASE OF REPURCHASE AGREEMENT. Under the Development Agreement, the Developer acquired certain property from the EDA pursuant to a Purchase Agreement dated November 16, 2004. The Parties 4264695v8 thereafter filed a Repurchase Agreement with the Office of Dakota County Recorder on March 8, 2005 as Document No. 2302432. Upon approval of the Revised Development Plan referenced in 2 above, the City shall provide to Developer a Release of the Repurchase Agreement in the form and text of Exhibit "D" attached hereto. 8. GRANT OF TRAIL EASEMENTS. The Developer shall convey, at no cost to the City, permanent 10 -foot trail, drainage and utility easements, in the form of Exhibit "E" and "F." 9. RELEASE BY DEVELOPER TO ACQUIRE THE OTHER PARCELS. Under Section 3.6 of the Amended Agreement, the Developer had the ability to acquire the Other Parcels to complete Phase II and Phase III. Because the Other Parcels are not needed to complete the Revised Development Plan, then upon final City approval of the Revised Development Plan, the Developer will release any claim it may have to the Other Parcels and shall, if requested, execute and deliver a quit claim deed to the City releasing any interest it may have in the Other Parcels. 10. WAIVER OF CLAIMS AND LIQUIDATED DAMAGES. In consideration of the agreements contained herein, including elimination of the subsidy in paragraph 3 and the payment to the City of the amounts set forth in paragraph 3, 4 and 5 and the conveyance of the property set forth in paragraph 6, the City and the EDA hereby waive any and all claims against Developer and unconditionally and fully release and forever discharge Developer and all other persons acting on behalf of Developer, from any and all liability, claims, whether known or unknown, or causes of action of any nature whatsoever with respect to the Nicols Ridge development and the Development Agreement, including without limitation, any claim for liquidated damages caused by the failure of the developer to substantially complete the units in each phase as required under the Development Agreement. 11. STREET CONNECTIONS. In connection with the approval of the Revised Development Plan referred to in paragraph 2 above, the Developer shall provide an easement, in a form acceptable to the City Attorney, for access to the private streets within the development. 12. FINANCIAL GUARANTY. The Developer shall provide the City and EDA a financial guaranty in the total amount of $385,344.00 securing full performance of this Agreement. The Developer shall furnish the City and EDA with a financial guaranty from a bank or lending institution having an office in the seven -county metro area and in a form acceptable to the City Attorney. The amount of the financial guaranty is calculated as follows: 4264695v8 • Fees for Parks, Trails and Public Improvements: $204,022.00 59 units at $3,458.00 per unit = $204,022.00 • Fees for Trail Improvements (City Project 888): $130,800.00 • Reimbursement for Trunk Utility Assessment: $50,522.00 TOTAL: $385,344.00 Upon receipt of the above -referenced Financial Guaranty, the City and EDA shall release all prior Financial Guaranty obligations, including: • Letter of Credit No. 61642259 issued July 23, 2004 in the amount of $609,511; and • Letter of Credit No. 61642265 issued April 26, 2004 in the amount of $91,400 The City agrees that, upon request of Developer, but not more often than quarterly, the City shall reduce the Letter of Credit on a percentage basis based on the completed payments made for the above obligations, where the numerator is the aggregate amount of all payments made by Developer and the denominator is the total amount of the Letter of Credit. 13. EVENT OF DEFAULT. The following shall be deemed an event of default under this Agreement: (a) failure of the developer to commence and complete construction of the 59 housing units by the later of September 1, 2013 or within three years after receipt of final approval of the Revised Development Plan; (b) failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed of performed hereunder; (c) the Developer shall admit, in writing, its inability to pay its debts generally as they become due, or file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself. 14. REMEDIES UPON DEFAULT. In the event a default occurs, the EDA and the City may, in addition to any other remedies or rights given the EDA and the City under this Agreement, but only after the Developer's failure to 4 /6 4264695v8 cure the same within 30 days of written notice of default, take any one or more of the following actions: (a) terminate this Agreement; (b) if the event of default is based on the failure of the Developer to substantially complete the 59 housing units under the revised Development Plan, the EDA shall be entitled to receive as liquidated damages and draw upon the Financial Guaranty for the number of units that remain incomplete multiplied by the fees owned for each unit pursuant to paragraphs 3, 4 and 5 above. 15. No REMEDY EXCLUSIVE. No remedy herein conferred upon or reserved to the EDA and the City is intended to be exclusive and any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. 16. NOTICES. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be deemed sufficiently given or delivered if it is sent by mail, postage prepaid, return receipt requested or delivered personally: As to the EDA: Eagan Economic Development Authority Attn: Executive Director 3830 Pilot Knob Road Eagan, MN 55122 As to the City: City of Eagan Attn: City Administrator 3830 Pilot Knob Road Eagan, MN 55122 As to Developer: Lennar Attn : Jon Aune Director of Land Operations 935 East Wayzata Boulevard Wayzata, MN 55391 17. CONTINGENCY OF CITY APPROVAL. Notwithstanding anything herein to the contrary, the obligations of the parties set forth in this Agreement are subject to and contingent upon approval of the Revised Development Plan by the City Council. If the City Council does not approve the Revised 4264695v8 Development Plan by July 1, 2010, then this Agreement may be terminated by either the City or Developer upon written notice to the other parties, in which event this Agreement and the terms hereof shall be null and void, and the terms of the Development Agreement and any prior amendments will remain in full force and effect. 6 /ID Signature Page of Developer DEVELOPER: U.S. HOME CORPORATION, a Delaware corporation By: Its: STATE OF MINNESOTA) )ss. COUNTY OF The foregoing was acknowledged before me this day of 2009, by , the of U.S. HOME CORPORATION, a Delaware corporation, on behalf of the corporation. 4264695v8 Notary Public 7 IIS Signature Page of EDA EDA: EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal corporation By: Mike Maguire Its: President By: Thomas L. Hedges Its: Executive Director STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing was acknowledged before me this day of , 2009, by Mike Maguire and Thomas L. Hedges, the President and Executive Director of Eagan Economic Development Authority, a Minnesota municipal corporation, on behalf of the municipal corporation. 4264695v8 Notary Public 8 iia Signature Page of the City of Eagan CITY: CITY OF EAGAN, a Minnesota municipal corporation By: Mike Maguire Its: Mayor By: Maria Petersen Its: Clerk STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) The foregoing was acknowledged before me this day of 2009, by Mike Maguire and Maria Petersen, the Mayor and Clerk of the City of Eagan, a Minnesota municipal corporation, on behalf of the municipal corporation. 4264695v8 Notary Public 9 I2 EXHIBIT "C" To Second Amended and Restated Development Agreement PURCHASE AGREEMENT THIS PURCHASE AGREEMENT ("Agreement") is made and entered into as of this day of , 2009, by and between U.S. HOME CORPORATION, a Delaware corporation ("Seller") and EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal corporation ("Purchaser"). For purposes of this Agreement, the term "Effective Date" shall mean the date that Purchaser receives a fully executed copy of this Agreement. In consideration of the covenants and agreements contained herein, the parties agree as follows: 1. Premises. Subject to compliance with the terms and conditions of this Agreement, Seller shall sell to Purchaser and Purchaser shall purchase from Seller approximately 3.21 acres more or less, together with all easements, tenements, hereditaments, and appurtenances belonging thereto or placed on said real property, which property is legally described as: Outlot A, Beau D Rue Drive Plat 2. Purchase Price; Payment; Settlement. The purchase price for the Premises shall be $364,448.00 ("Purchase Price") and shall be payable (subject to prorations, reductions and credits as provided below) by wire transfer, certified or cashier's check at the closing. The parties have entered into this Agreement in connection with settlement of disputes in accordance with a Second Amended and Restated Development Agreement dated , 2009 (the "Restated Development Agreement"). 3. Title to be Delivered; Commitment; Survey; Environmental Reporting; Title Objections. 4264696v11 A. Title to be Delivered. At closing, Seller agrees to convey marketable fee simple title in the Premises free and clear of all liens, encumbrances, easements, covenants, conditions and restrictions other than the Permitted Exceptions (defined herein). B. Commitment. The Seller shall, within fourteen (14) days after full execution of this agreement, furnish an abstract of title certified to date (or a Certificate of Title and Registered Property Abstract) to include proper searches covering bankruptcy, and State and Federal Judgments and liens. In lieu of an abstract, Seller may, at Seller's cost, cause to be issued and delivered to Purchaser a current title insurance commitment ("Commitment") covering the Premises issued by North American Title Insurance Company (the "Escrow Agent") wherein Escrow Agent agrees to issue to Purchaser a current form ALTA Owner's Title Insurance Policy, deleting standard exceptions and insuring title subject to the Permitted Exceptions and in the full amount of the Purchase Price. The u4 Commitment shall be accompanied by copies of all recorded documents affecting the Premises, and shall include searches for real estate taxes pending and levied special assessments. C. Title Objections. Purchaser shall have until the earlier of the Closing Date or twenty (20) days after the date it receives the Commitment (or any update or supplement thereto) to make its written objections to matters disclosed in the Commitment or any survey of the Premises (or any update or supplement thereto) which make title unmarketable. Any exception disclosed in the Commitment (or any update or supplement thereto) or any survey of the Premises and not timely objected to by Purchaser within the applicable ten (10) day period shall be deemed a "Permitted Exception" hereunder. In addition, any matters identified on Exhibit A attached hereto shall be "Permitted Exceptions" and shall not be objected to by Purchaser. Seller shall have until the Closing Date to have the same removed or satisfied, but Seller shall have no obligation to do so. If Seller shall fail to have such objections removed prior to the Closing Date, then Purchaser may, at its sole discretion, either (a) terminate this Agreement by written notice to Seller sent on or before the Closing Date, without any liability on its part, (b) waive such objections and proceed to closing with the understanding that such uncured objections shall be deemed Permitted Exceptions at closing, or (c) attempt to cure such uncured objections at Purchaser's sole cost and expense, in which event Purchaser shall have an additional twenty (20) days to attempt to cure such objection (during which period the Closing Date will be delayed), and if Purchaser is not successful in curing such objections, Purchaser shall then have the right to either terminate this Agreement pursuant to clause (a) above or waive such objections pursuant to clause (b) above. 4. Seller's Property Information; Purchaser's Inspections. 4264696v11 A. Seller's Property Information. Within five (5) days of Seller's acceptance and delivery of this Agreement to Purchaser, Seller shall deliver to Purchaser, at no cost to Purchaser, complete and accurate copies of any and all contracts, leases, license or other agreements pertaining to the Premises, including any amendments thereof, and copies of all permits, plats, authorizations, notices, consents, approvals, plans, specifications, surveys, engineering studies, analysis, soil test borings, environmental studies and other non-proprietary documentation and information reasonably requested by Purchaser (whether prepared by Seller, Seller's agents or independent contractors, any governmental authority or agency, federal, state or local, or any other third party) pertaining to the physical condition, development and operation of the Premises to the extent that Seller has the same in its possession ("Property Information"). 2 its B. Purchaser's Inspections. Purchaser and its agents and representatives shall have the right to enter upon the Premises at any time after the execution and delivery hereof for the purpose of inspecting, surveying, engineering, test boring, performance of environmental tests and such other inquiries of governmental agencies and utility companies, etc. and to make such feasibility studies and analyses as it considers appropriate (collectively the "Inspections"). Purchaser shall repair all damage to the Premises caused by such Inspections and, as a condition of entry onto the Premises, each of Purchaser's contractors entering onto the Premises shall have public liability insurance in an amount reasonably satisfactory to Purchaser and Seller. 5. Control of Premises. Until the closing, Seller shall have the full responsibility and the entire liability for any and all damages or injury of any kind whatsoever to the Premises, the improvements thereon, and all persons, whether employees or otherwise, and all property from and connected to the Premises, except where the same is caused by Purchaser or its employees, agents and contractors. 6. Representations, Warranties and Covenants of Seller. In order to induce Purchaser to enter into this Agreement and purchase the Premises, Seller hereby represents and warrants to Purchaser that to Seller's actual knowledge: 4264696v11 A. Subject to receipt of Corporate Investment Committee approval (i) Seller has full right and authority to enter into this Agreement, (ii) each person signing on behalf of Seller is authorized to do so, (iii) the execution and delivery of this Agreement by Seller will not constitute a default under any indenture, agreement, contract, mortgage or other instrument to which Seller is a party, (iv) Seller is a not a "foreign person" as that term is defined under the Internal Revenue Code Section 1445(F)(3), and (v) the sale of the Premises is not subject to any withholding requirements imposed by the Internal Revenue Code, including, without limitation, Section 1445(f)(3). B. Seller possesses fee simple title interest to the Premises. C. All labor and material which have been furnished to the Premises by Seller or prior users have been fully paid for or will be fully paid for prior to, or as of, the closing date. D. There are no management, maintenance or service contracts, leases, licenses, purchase agreements, purchase options, rights of first refusal, or other unrecorded agreements ("Contracts") affecting the Premises which will survive the closing. E. To Seller's actual knowledge, without duty to investigate, except as may be disclosed in any Phase I environmental site assessment or other report IIS 4264696v11 prepared in connection with the Premises ("Environmental Reports") and delivered to Purchaser, no entity or person has, at any time: i) "released" or actively or passively consented to the "release" or "threatened release" of any Hazardous Substance (as defined below) from any "facility" or "vessel" located on or used in connection with the Premises; or ii) taken any action in "response" to a "release" in connection with the Premises; or iii) otherwise engaged in any activity or omitted to take any action which could subject Seller or Purchaser to claims for intentional or negligent torts, strict or absolute liability, either pursuant to statute or common law, in connection with Hazardous Substances (as defined below) located in or on the Premises, including the generating, transporting, treating, storage, or manufacture of any Hazardous Substance (as defined below). The terms set within quotation marks above shall have the meaning given to them in the Comprehensive Environmental Response and Liability Act, 42 U.S.C. Sec. 9601 et seq., as amended ("CERCLA") and any state environmental laws. "Hazardous Substances" means hazardous waste, toxic substances, formaldehyde, urea, polychlorinated biphenyls, asbestos, petroleum, natural gas, synthetic gas usable for fuel or mixtures thereof, any materials related to any of the foregoing, and substances defined as "hazardous substances", "toxic substances", "hazardous waste", "pollutant", or "contaminant" in CERCLA, Resource Conservation and Recovery Act as amended, 41 U.S.C. Sec. 9601 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. Sec. 1801 et seq., the Clean Water Act, 33 U.S.C. Sec. 1251 et seq., any state laws regarding environmental matters, or any regulations promulgated pursuant to any of the foregoing statutes. F. Seller has no knowledge of any action or proceeding pending against Seller or any part of the Premises that, if determined adversely as to Seller, Purchaser or the Premises, would have a material adverse effect on title to or the enjoyment, use or value of the Premises, or that could interfere with the consummation of the transaction contemplated by this Agreement and, to Seller's knowledge, no such action or proceeding is contemplated or threatened by any party. G. To Seller's actual knowledge, without a duty to investigate, except for matters as may be disclosed in any Environmental Report or by Purchaser's Inspections communicated to Seller, Seller has no knowledge of any soil compaction or subsurface conditions that would interfere with the ability of the Premises to support buildings. H. Except as may be disclosed in any Environmental Reports, Seller does not know of any "Wells" on the described Premises within the meaning of Minn. Stat. Section 1031.235. This representation is intended to satisfy the requirements of the statute. I. To the knowledge of Seller, except as may be disclosed in any Environmental Reports, there are no aboveground tanks or underground tanks on the Premises. J. No person or entity has any rights to lease, use or occupy any portion of the Premises under any unrecorded document and no unrecorded documents create an interest in the Premises. K. Except as may be disclosed in any Environmental Reports, Seller has no knowledge of any existing or abandoned "individual sewage treatment systems" (within the meaning of Minn. Stat. §115.55) on or serving the Premises. L. Seller has no knowledge of any dispute concerning the location of the boundary lines and corners of the Premises. Except as may be disclosed by the Commitment or as would be disclosed by an accurate survey, Seller does not know of any encroachments onto the Premises. As used herein, the term "Seller's Knowledge" or "Seller's Actual Knowledge" or words of similar character, means the current actual knowledge of Jonathan Aune and Joe Jablonski, at the time of delivery of this Agreement. The representations and warranties set forth in this Section 6 shall be continuing and shall be true and correct on and as of the Closing Date with the same force and effect as if made at that time; subject to any new information discovered after the date of this Agreement and disclosed to Purchaser. Seller has not made any independent investigation or verification of such information and makes no representations as to the accuracy or completeness of such information. 4264696v11 7. Conditions of Closing. The closing of the transaction contemplated by this Agreement and all the obligations of Purchaser under this Agreement are expressly contingent on the following: A. Purchaser shall have determined that the physical status or condition of the Premises, including without limitation, environmental, geotechnical (soil) wetland, floodplain, drainage and availability of adequate access and utilities, shall be satisfactory to Purchaser in its sole discretion. B. Purchaser, in its sole and absolute discretion, shall have determined that the Premises is acceptable to Purchaser in all respects. C. Purchaser shall have successfully conducted a Phase I environmental test as well as core drilling of the Premises to determine the soil condition thereof and Purchaser shall have been fully satisfied by the results of such Phase I environmental test and core drilling. Purchaser shall have 60 days from the date of this Agreement to satisfy the foregoing conditions to Purchaser's full satisfaction, in Purchaser's sole discretion ("Condition Date"). Purchaser may acknowledge the foregoing conditions are not satisfied only by delivering written notice of Purchaser's election to terminate this Agreement to Seller on or before the Condition Date (which notice shall specify the nature of the defect or adverse condition). In such event, Purchaser and Seller shall thereafter be released from any liability or obligation hereunder, except for Seller's obligation to reimburse Purchaser for environmental testing. If Purchaser fails to timely deliver notice to terminate to Seller, then the parties shall proceed to closing, subject to fulfillment of the other terms and conditions of this Agreement. The closing of the transaction contemplated by this Agreement and all the obligations of Seller under this Agreement are expressly contingent on approval by the City of Eagan of the Revised Development Plan (as defined in the Revised Development Agreement). 8. Closing Date. Subject to the fulfillment or waiver of conditions hereof, and provided that all of the covenants, representations and warranties of Seller are true and correct on the closing date as though made on such date, the closing of the purchase and sale shall take place within ten (10) days after approval by the City of Eagan of the Revised Development Plan (as defined in the Revised Developmemnt Agreement), or such earlier date as mutually agreed upon by Purchaser and Seller ("Closing Date"). The closing shall take place at the offices of the Escrow Agent or at such other place as Seller and Purchaser may mutually determine. Possession of the Premises shall be delivered to Purchaser on the Closing Date, free of any leasehold or possessory interest of Seller and any tenants, licensees or occupants thereof. 9. Seller's Obligations At Closing. At or prior to the Closing Date, Seller shall: 4264696v11 A. Deliver to Purchaser Seller's duly recordable General Warranty Deed (the "Deed") to the Premises conveying to Purchaser marketable fee simple title to the Premises and all rights appurtenant thereto, subject to the Permitted Exceptions. B. Deliver to Purchaser and Escrow Agent standard affidavit of Seller confirming that Seller is not a "foreign corporation" within the meaning of Section 1445 of the Internal Revenue Code. C. Deliver to Purchaser and Escrow Agent a standard affidavit of Seller in form and content sufficient to allow Escrow Agent to delete the standard exceptions contained in Purchaser's Owners Title Insurance Policy relative to (i) parties in possession, (ii) liens for labor, materials or services, and (iii) unrecorded easements or other instruments. 6 1(9' D. Deliver to Purchaser a certificate at closing confirming that the representations and warranties set forth in Section 6 of this Agreement are true and correct as of the Closing Date as though made as of such date. E. Deliver to Purchaser such other documents as may be reasonably necessary to effectuate the transfer contemplated in this Purchase Agreement. 10. Delivery of Purchase Price; Obligations At Closing. At closing, subject to the terms, conditions and provisions hereof and the performance by Seller of its obligations as set forth herein, Purchaser shall pay the Purchase Price to Seller pursuant to Section 2 above, and deliver such customary affidavits and documents as may reasonably be required by the Escrow Agent to insure title to the Premises. 11. Closing Costs. The following costs and expenses shall be paid as follows in connection with the closing: 4264696v11 A. Seller shall pay: 1. All fees to record all of the documents necessary to permit Seller to convey marketable fee simple title to the Premises to Purchaser (other than the fee to record the Deed); 2. Any state, county or municipal deed tax, excise tax or transfer fee imposed on the conveyance; 3. Any deferred or delinquent real property taxes and Seller's pro -rata share of those costs, and expenses as set forth in Section 12 below; 4. The brokerage fee of Seller's broker, if any, pursuant to Section 13 below; 5. One-half (1/2) of any closing fee charged by Escrow Agent or any title company closing this transaction; 6. Seller's attorneys' fees and costs; and 7. The Liquidated Damages payment in 16.M of this Agreement. B. Purchaser shall pay the following in connection with the closing: accordance with Section 1. The fee necessary to record the Deed; 2. The premium for any Owner's Title Insurance Policy requested by Purchaser, and any endorsements thereto; 7 Ida 3. One-half (1/2) of the closing fees charged by Escrow Agent or any title company closing of this transaction; 4. Purchaser's attorneys' fees and costs; and 5. Purchaser's share of those costs and expenses as set forth in Section 12, below. C. The terms of this Section 11 shall survive the closing of the transaction contemplated herein. 12. Prorations. The following prorations shall be made as of the Closing Date: A. Real property taxes (excluding any outstanding special assessments and/or installments of special assessments certified to the real property taxes) allocable to the Premises that are due and payable in the year of the closing shall be prorated between Seller and Purchaser to the Closing Date. Seller shall pay all such real estate taxes due and payable in years prior to the year of closing. Purchaser shall assume the responsibility for the payment of all such taxes due and payable in the years subsequent to the year of closing. B. Purchaser shall assume all special assessments existing as of the date of this Agreement, whether levied, deferred or assessed, including without limitation, the unpaid balance of special assessments and/or installments of special assessments certified for payment to the real estate taxes as well as any deferred or green acres taxes. C. The terms of this Section 12 shall survive the closing of the transaction contemplated herein. 13. Brokerage. Purchaser has not engaged the services of any broker in connection with the purchase contemplated by this Agreement. If Seller has engaged the services of a broker, Seller shall pay any commission(s) related thereto. 14. Remedies. 4264696v11 A. Seller Default. If Seller defaults in the performance of this Agreement, and such default remains uncured after 30 days written notice to Seller of the default then Purchaser may, as its sole and exclusive remedy, either (i) cancel this Agreement by written notice to Seller, or (ii) if Purchaser does not cancel this Agreement, Seller acknowledges the Premises are unique and the money damages to Purchaser in the event of default by Seller are inadequate and Purchaser shall have the right to apply for and to receive from a court of competent jurisdiction equitable relief by way of 8 )+1 restraining order, injunction or otherwise, prohibitory or mandatory, to prevent a breach of the terms of this Agreement, or by way of specific performance to enforce performance of the terms of this Agreement, or by way of rescission, plus reimbursement for costs, including reasonable attorneys' fees, incurred if such relief is granted. B. Purchaser Default. If Purchaser defaults in the performance of this Agreement, Seller's sole and exclusive remedy shall be to cancel this Agreement by delivering written notice of such default to Purchaser ("Seller's Default Notice") in which event Purchaser shall have the opportunity to cure such default within thirty (30) days after receipt of Seller's Default Notice, and if Purchaser fails to timely cure such default after receipt of Seller's Default Notice, then this Agreement shall be deemed canceled without further action between the parties. 15. Time for Acceptance. This Agreement, when duly executed by all of the parties hereto, shall be binding upon the parties hereto, their heirs, representatives, successors and assigns. 16. Miscellaneous. The following general provisions govern this Agreement. 4264696v11 A. No Waivers. The waiver by either party hereto of any condition or the breach of any term, covenant or condition herein shall not be deemed to be a waiver of any other condition or of any subsequent breach of the same or any other term, covenant, or condition herein contained. Purchaser, in its sole discretion may waive any right conferred upon Purchaser by this Agreement; provided that such waiver shall only be made by Purchaser giving Seller written notice specifically describing the right waived. B. Time of Essence. Time is of the essence in this Agreement. C. Governing Law. This Agreement is made and executed under and in all respects to be governed and construed by the laws of the State of Minnesota and the parties hereto hereby agree and consent and submit themselves to any court of competent jurisdiction situated in the State of Minnesota. D. Notices. All notices and demands given or required to be given by any party hereto to any other party shall be deemed to have been properly given if and when delivered in person, the next business day after being sent by reputable overnight commercial courier (e.g. U.S or Federal Express) or three (3) business days after having been deposited in any U.S. Postal Service and sent by registered or certified mail, postage prepaid, addressed as follows (or sent to such other address as any party shall specify to the other party pursuant to the provisions of this Section): 4264696v11 TO SELLER: Lennar Attn: Jonathan Aune, Director of Land Operations 935 East Wayzata Blvd. Wayzata, MN 55391 With a copy to: Leonard, Street and Deinard Professional Association Attn: Jerry D. Perron 150 South Fifth Street, Suite 2300 Minneapolis, MN 55402 TO PURCHASER: Eagan Economic Development Authority Attn: Jon Hohenstein, Community Development Director 3830 Pilot Knob Road Eagan, MN 55122 With a copy to: Severson, Sheldon, Dougherty & Molenda, P. A. Attn: Robert B. Bauer 7300 West 147th Street Suite 600 Apple Valley, MN 55124 E. Successors and Assigns. This Agreement shall be binding upon and insure to the benefit of the successors and assigns of each of the parties hereto. Seller shall not be permitted to assign its rights and obligations under this Agreement. F. Invalidity. If for any reason any term or provision of this Agreement shall be declared void and unenforceable by any court of law or equity it shall only affect such particular item or provision of this Agreement and the balance of this Agreement shall remain in full force and effect and shall be binding upon the parties hereto. G. Complete Agreement. All understandings and agreements heretofore had between the parties are merged into this Agreement which alone fully and completely expresses their agreement. This Agreement may be changed only in writing signed by both of the parties hereto and shall apply to and bind the successors and assigns of each of the parties hereto and shall not merge with the deed delivered to Purchaser at closing. H. Counterparts. This Agreement may be executed in one or more counterparts each of which when so executed and delivered shall be an original, but together shall constitute one and the same instrument. Calculation of Time Periods. Unless otherwise specifically provided herein, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to dun is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday under the laws of the State of Minnesota, in which event the period shall 10 4264696v11 run until the end of the next day which is neither a Saturday, Sunday or legal holiday. The final day of such period shall be deemed to end at 5:00 p.m., Minnesota time. J. Survival. All of the warranties, covenants, and representations made herein by either Seller or Purchaser shall survive closing and the delivery of the Deed to Purchaser, or the earlier termination of this Agreement, provided any action, lawsuit or other claim based upon any such warranties, representations or covenants shall be commenced within 12 months after the Closing Date or be forever barred. K. Settlement is Final; AS IS. Subject to the express representations and warranties of Seller set forth in this Agreement, it is understood the Purchaser accepts the Premises "AS IS, WHERE IS AND WITH ALL FAULTS". SUBJECT TO THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT, ANY OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, OF THE PHYSICAL CONDITION (INCLUDING ENVIRONMENTAL CONDITION) OF THE PREMISES ARE VOID. The Seller has no further responsibility or liability with respect to the condition of the Premises. Purchaser acknowledges that it and its representatives have or before Closing will have fully inspected the Premises or will be provided with an adequate opportunity to do so, are or will be fully familiar with the financial and physical (including without limitation environmental) condition thereof. L. Release. Subject to the express representations, warranties and covenants of Seller set forth in this Agreement, Purchaser hereby releases Seller and Seller's representatives, attorneys and agents from any and all claims, demands, causes of actions, losses, damages, liabilities, costs and expenses (including attorney's fees whether the suit is instituted or not) whether known or unknown, liquidated or contingent (hereinafter collectively called the "Claims") arising from or relating to any other conditions of any kind whatsoever, including environmental and other physical conditions, affecting the Premises whether the same are a result of negligence or otherwise. The release set forth in this paragraph specifically includes, without limitation, any claims under any Environmental Laws. The term "Claims" as used in this Section, shall not include claims for breach of a representation, warranty or covenant set forth in this Agreement nor any claim of fraud. M. Liquidated Damages Payment. On the Closing Date, Seller shall pay to Purchaser an amount equal to the lesser of $364,448 or the portion of the Purchase Price actually received by Seller, as full and final settlement of all claims held by Purchaser against Seller, and Purchaser on behalf of itself, its members, governors, successors, assigns, beneficiaries, and all 11 I()Nit other persons acting on its behalf, hereby unconditionally and fully releases and forever discharges Seller and all other persons acting on behalf of Seller, from any and all liability, claims, whether known or unknown, or causes of action of any nature whatsoever, including but not limited to any claims for liquidated or default damages claimed to be owing pursuant to the Development Agreement or otherwise in connection with the Nicols Ridge development (both as defined in the Revised Development Agreement). N. Waiver of Jury Trial. THE PURCHASER AND THE SELLER HEREBY EXPRESSLY COVENANT AND AGREE TO WAIVE THE RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION OR JUDICIAL PROCEEDING RELATING TO, DIRECTLY OR INDIRECTLY, OR CONCERNING THIS AGREEMENT OR THE CONDUCT, OMISSION, ACTION, OBLIGATION, DUTY, RIGHT, BENEFIT, PRIVILEGE OR LIABILITY OF A PARTY HEREUNDER TO THE FULL EXTENT PERMITTED BY LAW. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN AND IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY THE PURCHASER AND THE SELLER. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. SELLER: PURCHASER: U.S. HOME CORPORATION, a Delaware corporation EAGAN ECONOMIC DEVELOPMENT AUTHORITY, a Minnesota municipal corporation By: By: Its: Mike Maguire Its: President 4264696v11 By: Thomas L. Hedges Its: Executive Director 12 �aC Agenda Memo Eagan Economic Development Authority Meeting December 1, 2009 New Business 2. NORTHEAST EAGAN REDEVELOPMENT DISTRICT — Consider Request for Assessment Agreement for Certain Costs for McGough Development ACTION TO BE CONSIDERED: To direct staff to prepare an assessment agreement for additional acquisition costs for the assembly of property for the Blue Gentian Corporate Center project for future consideration by the EDA. or To refer consideration of this item to the City Council Finance Committee for a recommendation regarding an assessment agreement for additional acquisition costs for the assembly of property for the Blue Gentian Corporate Center project for future consideration by the EDA. FACTS: • At its meeting of March 6, 2006, the EDA and City Council approved a TIF Development Agreement between the City and MG Eagan, an entity of McGough Development, for the redevelopment of property in the Northeast Eagan Redevelopment District No. 2-4. Under the terms of the agreement, MG Eagan agreed to pay all of the City costs of acquisition of properties the company could not acquire by private negotiation. • Since that time, the developer has received approval for the development of the Blue Gentian Corporate Center project. Subsequently, the City approved the decertification of a portion of District No. 2-4 and the recertification of a new TIF District No. 2-5, which includes the Blue Gentian Corporate Center properties. • When the developer had acquired most of the properties and had exhausted good faith efforts to acquire the remaining four properties privately, the EDA proceeded with the acquisition of those properties. Initial values were determined to be $2.3 million, which MG Eagan has already paid to the EDA and the EDA has paid to the owners. The total cost of acquisition was subsequently estimated to be $2.8 million. MG Eagan has provided a financial security to the EDA for the difference of $500,000. • In light of Commissioners' awards and settlement negotiations, the City Attorney's office is estimating that the total cost of acquisition may be in excess of that amount. The developer has been advised of that circumstance and, while they agree that the additional cost would be their obligation, they have asked that the EDA consider a proposal that any amount in excess of the $500,000 covered !ale by the security be financed through an assessment agreement against the Blue Gentian Corporate Center property. The City Attorney has advised that this is an acceptable mechanism to insure payment of the obligation, even though it differs from the typical situation in which physical improvements are financed through such agreements. • While McGough has actively marketed the site since its approval, it has not been able to secure a tenant for the first phase of the development to date. In consideration of the current development and credit markets, the developer has stated that the consideration being requested will allow them to control the costs of the project and the financial security, while providing assurance to the City that the additional costs will be paid once the project proceeds. • In consideration of the developer's efforts and the effect of the current economy on development activity, the requested assessment agreement may be in order at the discretion of the EDA. • If the EDA believes this background to be sufficient to provide direction at Tuesday's meeting, it can direct that an agreement can be prepared and executed by the developer for consideration at a future meeting. If the EDA would like the matter reviewed in more detail prior to considering an action, an option would be to refer it to the Council Finance Committee to provide a recommendation in its regard. ATTACHMENTS: • Location map on page /oRI? 1 4 Blue Gentian Road/Pavement Edge Map date: Novemeber 25, 2009 MEEMI i� UM' ice■ 'milk ISN MOE roMIN PPPI lil moi ME MN i Agenda Information Memo Eagan City Council Meeting December 1, 2009 New Business 3. AUTHORIZE CDA REDEVELOPMENT INCENTIVE GRANT FOR CEDAR GROVE PROJECT ACTION TO BE CONSIDERED: To adopt a resolution authorizing the submittal of a CDA Redevelopment Incentive Grant (RIG) program application for demolition and improvement activities in the Cedar Grove Redevelopment District. FACTS: • The Dakota County Community Development Agency has allocated up to $1.2 million per year for its Redevelopment Incentive Grant (RIG) Program, which was created to assist cities and development entities in the County in meeting their redevelopment goals and to further the goals of the CDA. • The maximum grant award is $250,000 per community, but may be less depending upon the number of qualified applications that are received for the program. Grant applications are accepted through December 1 for award and distribution in the following year. The CDA is allowing Eagan submittal subsequent to this pending EDA approval. • The CDA has worked with the City in a number of respects relative to the Cedar Grove Redevelopment District and approved $250,000 in RIG funding in 2009 to assist with demolition work on remaining acquired properties. • Staff is prepared to submit a 2010 RIG application requesting $250,000 for the 2010 application round with proposed uses as follows: o Complete demolition work on two acquired properties that could not be funded under 2009 (Mediterranean Cruise and Sara's Laundry). (cost estimate $90,000) o Provide funding to construct a 1,250' trail from Cedar Grove Parkway along Gold Trail that would enhance pedestrian connections the new Cedar Grove development and existing neighborhood to lower Woodhaven Park, and leverage existing park and open space in the area. (cost estimate, $55,000) o Provide additional funding to assist with land write down costs associated with the proposed apartment development within the initial phase of the redevelopment. (remaining funds, $105,000) • The RIG grant application and the program criteria require adoption of the attached resolution as part of the submittal documents. ATTACHMENTS: • Cedar Grove Core Area and RIG Improvements Map on page / SD • Resolutions on page! b 'a9 RESOULTION AUTHORIZING SUBMITTAL OF 2010 CDA RIG APPLICATION ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the Eagan Economic Development Authority (EDA) has identified a proposed project(s) within the City of Eagan that meets the Dakota County Community Development Agency (CDA) Redevelopment Incentive Grant program's purposes and criteria; and WHEREAS, the EDA is engaged in activities to bring about the redevelopment of the Cedar Grove area and the proposed projects are components of that effort; and WHEREAS, the EDA has the capability and capacity to ensure the proposed be completed and administered within the Redevelopment Incentive Grant program guidelines; and WHEREAS, the EDA has the legal authority to apply for financial assistance; and WHEREAS, the EDA is supportive of affordable housing and of the CDA's mission, to improve the lives of Dakota County residents through affordable housing and community development. NOW THEREFORE BE IT RESOLVED that the Eagan Economic Development Authority approves the application for funding from the Dakota County CDA, Mike Maguire, the EDA President and Tom Hedges, the Executive Director, is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project. Motion by: Second by: Those in Favor: Those Against: CERTIFICATION I, Mike Maguire, EDA President of the Economic Development Authority Tom Hedges, the Executive Director of the City of Eagan, Dakota County, Minnesota, do hereby certify that the foregoing resolution was duly passed and adopted by the Authority in a regular meeting thereof assembled this 1st day of December, 2009. Mike Maguire, EDA President Tom Hedges, Executive Director /3) Agenda Information Memo Eagan Economic Development Authority Meeting December 1, 2009 F. OTHER BUSINESS There is no other business to come before the EDA at this time. G. ADJOURNMENT ACTION TO BE CONSIDERED: To adjourn the Economic Development Authority meeting. X33, City of Eapll 2010 General Fund Budget and Property Tax Levy Public Hearing December 1, 2009 Eagan Municipal Center 2 Introduction Each year, as part of the budget preparation process, most Minnesota cities are required by law to hold a public hearing to receive comments on the types and levels of services proposed for the coming year and the anticipated costs of those services. We expect and welcome public comment as a constructive part of the budget process. Public input, together with the City Council's experience and City staffs expertise, help form the spending and cost management priorities for the City. To that end, in addition to tonight's formal budget hearing, the City Council would like to invite you to a Budget Open House on Tuesday, December 8, 5:30-7:00 p.m., in the Eagan Room at City Hall, to discuss your questions, concerns, and ideas with the City Council and staff in an informal, conversational setting. Background In Minnesota, property taxes provide a significant portion of the total funding for K-12 schools and City and County services. The purpose of tonight's hearing is to discuss only the portion of taxes that supports City services, which is a little more than one-quarter of a homeowner's total property taxes. The City Council does not control the amounts levied for K-12 schools or County services. Nor does the City establish the market value of a property, another factor affecting the change in total taxes; it is the responsibility of the Dakota County Assessor's office to establish each property's market value. Even though most homeowners saw the County's assessed value on their home decline this year, some may feel the assessed value is still more than they could sell their homes for. Keep in mind that the property value used on the 2010 Proposed Property Tax statement was the assigned value as of January 1, 2009, almost a full year ago. To further discuss the assessed value of your property, you may contact the Dakota County Assessor's office at 651-438-4200. Levy Limits Like last year, levy limits have been imposed on cities by the State Legislature. The 2010 base levy is limited by the following factors: 1. 0.83% inflation allowance 2. One-half of the growth in number of households ( or 0.23%); plus 3. One-half of the growth in new commercial/industrial construction (or 0.05%). In total, these factors add up to a base levy growth rate of just over 1%. Additionally, cities can elect certain special levies designated by the Legislature that fall outside the base calculation. The full amount of the change from 2009 to proposed 2010 can be included for these special levies. Eagan has elected special levies for: a) police and fire wages and benefits 3 b) the increase in required contribution rates for the Public Employees Retirement Association; and c) debt service levies. The net effect of the three special levies increases the levy limit by 5.0%, bringing Eagan's total levy limit in 2010 to 6.0% over the total 2009 levy. On the Proposed Property Tax statements for 2010, City taxes were calculated on a preliminary levy of 6.3%. Due to a revised calculation of the special levies, the correct maximum levy has since been reduced by $83,232 to $27,464,985. 2010 Property Tax Levy Tonight, the Council is considering the proposed 2010 tax levy shown below: Operating Levy General Fund Major Street Fund Equipment Revolving Fund Fire Apparatus/Equip Certs General Facilities R&R Total Operating Levy MV Levy — Comm Ctr bonds Total Levy Actual Proposed 2009 2010 Change $ 20,685,700 $22,236,645 2,371,301 2,371,301 987,790 987,790 400,000 400,000 271,146 271,146 24, 715, 937 26, 266, 882 6.3% 1,193, 903 1,198,103 (0.5%) $ 25,909,840 $ 27,464,985 6.0% The total levy is up 6.0% from last year. The total operating levy of $27,464,985 will be reduced by the MVHC estimate of $983,023 at the County, leaving a tax levy of $26,481,962 to be spread on the tax capacity of local property. The Council has proposed the City levy for lost MVHC, which accounts for 5.0% of the 6.0% increase. In other words, if the State had not withheld its promised aid, Eagan's levy increase would be about 1.0%. Some cities are not levying back for the lost State aid and, instead, funding operations by using funds that were originally set aside for capital improvements. If the Council were not to levy for the lost aid, we would likely see an impact on investment and re -investment in the City's infrastructure. The Council feels it is both important and fiscally prudent to maintain its funding for capital projects during these difficult times. Maintaining our streets, trails, and parks infrastructure today will mean less maintenance and repair in the future. In addition, with construction costs at all-time lows due to the economy, we are in a very favorable bidding 4 climate for capital projects. 5 2010 General Fund Budget Expenditures In June 2009, in response to the Governor's unallotment of Market Value Homestead Credit aid to the City in the amount of $700,000 and other lagging revenues resulting from the poor economy, the City Council adjusted the 2009 expenditure budget down by $592,000. As part of the adjustments, 9.2 full-time equivalent (FTE) positions were eliminated. As the Council began consideration of the 2010 budget, it looked not only at 2010 but at years further out, and determined that the 9.2 FTEs would have to stay eliminated, resetting the base to achieve long-term sustainability. The Council also recognized that additional cuts might be necessary, depending on the severity and duration of the recession. With that as a backdrop, the Council is proposing a 2010 General Fund expenditure budget of $27,490,400, an increase of $490,400, or 1.8%, over the amended 2009 budget, and $175,100, or 0.6%, below the original 2009 budget. About three-quarters of the City's budget is staff wages and benefits. 2010 is the final year of a three-year contract with the City's collective bargaining units (unions), which includes Police officers, maintenance workers, and some clerical staff. Their 2010 wage increase of 3.5% was negotiated more than two years ago, and the City will honor these contractual obligations. About half of the City's full-time employees are a part a union. The non- union staff will receive a 0% wage increase for 2010 (i.e., wage rates are frozen). No new positions are proposed; no new services are proposed. At the same time, no services are proposed to be eliminated, although with the reduction in staff, it is expected there may be some impact (e.g., delays) to services. Revenues The 2010 budget is balanced. As with expenditures, total revenues are estimated to be down 0.6% from the original 2009 estimates. It is the goal of the Council to wean the City from any reliance on State aid as the 6 State has reneged on its aid commitments as part of its own budget balancing strategy several times over the past decade. In 2010, the lost Market Value Homestead Credit aid is levied back in property taxes. Other revenues, such as interest income and development -related permits and inspections, are again expected to be lower than they have been traditionally over the past few years. 7 City Portion of Taxes Although not broken down for the reader, the City of Eagan tax figure in the TnT Proposed Property Tax Statements has three components: 1) the amount based on tax capacity; 2) the amount based on market value, resulting from the Community Center referendum approved by voters in 2000; and 3) the market value homestead credit, which is applied to the tax -capacity portion of the property tax on a prorated basis. (The market value homestead credit does not apply to commercial/industrial property.) Tax Capacity -based Portion The graphics on pages 7 through 10 help illustrate how the amount based on tax capacity is calculated. Each property's tax capacity (a function of market value and property type) is multiplied by the City's tax capacity rate, which is derived from the dollar levy approved by the Council. The City portion of taxes on a residential property with a market value of $256,958 (City average for 2010) is calculated as follows: First ... Tax capacity of $256,958 home = $256,958 x 1% = $2,570 Then ... Tax capacity -based taxes = $2,570 x .30407 (tax cap. rate) = $781.33 Market Value -based Portion In 2000, Eagan voters approved a bond referendum to fund development and construction of the Community Center in the Central Park area. The 20 -year serial bonds were sold in 2001. Each year, the amount of the debt service payments is levied as part of the property tax. The market value tax rate for 2010 is .0001603. Calculation of the 2010 market value -based tax on the home is as follows: Market value -based taxes = $256,958 x .0001603 (MV rate) = $41.19. Market Value Homestead Credit (MVHC) The TnT Proposed Property Tax Statement combines the tax capacity -based portion with the market value -based portion. For residential properties only, this total is then reduced by a homestead credit calculated according to a formula set by the State (see page 8). In the example of the $256,958 home, the MVHC applied to the City portion of property taxes for a homestead in ISD 196 is $49.06. Only the bottom line total tax, or $773.46 in this example, would appear on the TnT statement. The three components are summarized here: Tax capacity -based tax $ 781.33 Market value -based tax 41.19 MVHC (49.06) Total City tax $ 773.46 8 FREQUENTLY ASKED QUESTIONS (FAQs) When it comes to answering FAQs, sometimes pictures say it better than words. The charts and tables on the following pages serve to answer the questions we are commonly asked: What share of my tax bill goes to the City? Page 6 - Pie chart illustrating where your property tax dollars go How is the City share of my tax bill calculated? Page 7 - Summary of three components of tax calculation Page 8 - Graphic of tax capacity -based tax calculation Page 9 - Determining tax capacity of a property Page 10 - Determining the City's tax capacity rate How are my City tax dollars being spent? Page 11 - Pie chart reflecting allocation of 2010 property tax for a $256,958 house What other revenue sources are used to pay for the proposed budget? Page 12 - Pie chart of total revenues by source Page 13 - Comparative summary of revenues for 2007 and 2008 actual, and 2009 and 2010 (as proposed) budget. What amount of spending is proposed for 2010, and how does it compare to prior years? Page 14 - Pie chart and table of major expenditure categories 9 Page 15 - Comparative summary of expenditures for 2007 and 2008 actual, and 2009 and 2010 (as proposed) budget. How do my City taxes compare with those of other Metro -area suburbs? Page 16 - Bar chart comparing Eagan with 17 other area cities 10 Where will your 2010 property tax dollars go? Calculation is for residential property located in ISD 196. County 25% Schools 43% 11 Calculating the City Portion of Property Taxes There are three basic components to the City tax figure shown in your Proposed Property Tax Statement: 1) Tax capacity -based taxes This is the more complicated part of the calculation. See graphics on pages 8-10. 2) Market value -based taxes In a 2000 referendum election, voters authorized the City to issue bonds to develop the Central Park area and construct a Community Center there. Bonds in the amount of $13,970,000 were issued in 2001. Bond payments are made from a tax levy that is based on a property's market value, calculated like this: 3) Market Value Credit applied to City portion (pertains to residential properties only) Beginning with the payable 2002 property taxes, the State Legislature instituted a market value credit for homestead property taxpayers. The credit reduces the property taxes. It 12 is calculated as 0.4% of the market value of a homestead up to a maximum credit of $304 for a home valued at $76,000. For homestead values over $76,000, the credit phases out, on a straight-line basis, to zero for a home valued at $414,000. The total credit for each homestead is applied on a pro -rata basis to City, County, School District and other components of the property taxes. 13 Tax Capacity Portion of Property Taxes Total taxes to be generated by levy Total tax capacity available to generate taxes 11 Tax capacity of your property 11 City tax capacity rate for all properties 14 Influencing factors: General Fd expenditures Debt service Allocation to capital proj. State aids Other non -tax revenues Influencing factors: Development/growth Tax class rate changes Fiscal disparities TIF Tax capacity - based taxes Determining Your Property's Tax Capacity X Property Class Rates 2009 2010 Residential (both homestead and non -homestead) First $500,000 in value L00% L00% Over $500.000 L25% L25% 15 Example 1: Residential homestead valued at $256,958: 2010 tax capacity = $256,958 x 1.00% = $2,570 Example 2: Residential homestead valued at $600,000: $500,000 x 1.00% = $5,000 $100,000 x 1.25% = 1,250 2010 tax capacity = $6,250 Determining the City's Tax Capacity Rate Total taxes to be generated by levy • . Total tax capacity available to enerate taxes 2009 2010 % change Property tax levy Operating $24,715,937 $ 26,200,777 6.0% Debt service 0 66,105 - Subtotal 24,715,937 26,266,882 6.3% Less: Fiscal Disparities Distribution (2,316,958) (2,414,413) 4.2% 2009 2010 % change Total tax capacity $98,033,942 $ 93,894,797 (4.2%) Less: Fiscal Disparities Contribution (13,278,837) (14,206,512) 15.7% 2009 tax capacity rate = 22,398,979 / 83,406,813 = .26855 18 How are my City tax dollars allocated? $773 in taxes on a $256,958 (avg) Eagan home Contingency Comm Ctr Debt $5 Capital Equip $41 1 $39 Gen! Govt Bldgs $14 Gen Facilities Rill $8 19 2010 General Fund Revenues $ 271537,100 Licenses & Other Permits 2.7% 3.2% Recreation Transfers Charges 1.6% 2.6% Charges forIntergov't Program Services Revenue Revenues 3.7°I° 2.6% 6.4°I° 20 2011 BUDGET GENERAL FUND COMPARATIVE SUMMARY OF REVENUES General Property Taxes Licenses Permits Intergovernmental Rev Charges for Services Recreation Charges Fines & Forfeits Other Revenues Program Revenues Transfers 2008 Actual 2009 Budget 2010 Amended Budget 2011 Budget 200 $ 18,887,330 $ 20,685,800 $ 21,253,600 $21,204,600 278,552 278,200 278,700 277,900 1,192,579 589,500 597,600 959,600 1,122,628 637,700 722,400 678,100 1,291,509 1,139,300 1,016,100 1,009,600 697,606 747,800 719,300 622,600 318,252 350,500 372,000 344,500 602,336 359,000 366,300 284,600 1,432,676 1,846,300 1,761,500 1,847,100 415,458 503,100 449,600 459,300 TOTAL GENERAL FUND $ 26,238,925 $ 27,137,200 $ 27,537,100 $27,687,900 21 2010 General Fund Allocation of Expenditures Building Maint 2. % Contingency 0.2% 2010 Com parative Sum m ary of Expenditures General Fund Budget GENERAL GOVERNMENT 01 Mayor& Council 02 Administration 03 Information Technologies 04 City Clerk 05 Finance 06 Legal 07 Comm Dev--Planning/ED 08 Comm Dev--Inspections 09 Communications 10 Human Resources Gen Govt Total PUBLIC SAFETY 11 Police 12 Fire Public Safety Total 2007 Actual 124,592 475,585 1,080,035 267,591 938,366 400,074 870,014 826,643 434,550 219,645 5,637,095 2008 Actual 121,225 497,861 1,208, 766 346,753 1,002,982 418,587 916,477 921,841 417,125 228,564 6,080,181 2009 Amended Budget 2010 Budget Difference 10 vs. 09 Amount yo 147,900 141,200 $ (6,700), -4.5% 485,200 494,100 8,900 1.8% 1,263,100 1,265,100 2,000 0.2% 249,100 312,900 63,800 25.6% 1,070,700 1,099,300 28,600 2.7% 457,400 395,000 (62,400) -13.6% 881,100 900,500 19,400 2.2% 923,500 904,100 (19,400) -2.1% 447,700 448,700 1,000 0.2% 249,800 241,800 (8,000) -3.2% 6,175,500 6,202,700 27,200 0.4% 9,863,498 10,586,623 10,836,000 10,978,700 142,700 1,655,478 1,748,207 1,642,000 1,697,000 55,000 11,518,976 12,334,830 12,478,000 12,675,700 197,700 1.3% 3.3% 1.6% PUBLIC WORKS 21 Public Works/Engineering 1,158,745 1,215,609 1,217,000 1,226,200 9,200 0.8% 22 Streets 1,747,099 1,846,107 1,624,900 1,743,500 118,600 7.3% 24 Central Svces. Maint. 532,529 594,392 589,600 608,400 18,800 3.2% Public Works Total 3,438,373 3,656,108 3,431,500 3,578,100 146,600 4.3% PARKS & RECREATION 30 Recreation 1,825,994 1,872,290 1,911,500 1,907,700 (3,800), -0.2% 31 Parks 1,840,842 1,889,119 1,892,100 2,004,600 112,500 5.9% 32 Tree Conservation 489,658 457,460 486,300 485,000 (1,300) -0.3% Parks & Rec Total 4,156,494 4,218,869 4,289,900 4,397,300 107,400 2.5% GENL GOVT BLDG MAINT 648,767 702,132 625,100 636,600 11,500 1.8% 33 Building Maintenance Subtotal 25,399,705 26,992,120 27,000,000 27,490,400 $ 490,400 1.8% 41 Contingency --undesignated - 137,200 46,700 (90,500) -66.0% General Fund Total 25,399,705 $ 26,992,120 $ 27,137,200 $ 27,537,100 $ 399,900 1.5% 23 City Portion of Property Taxes 2010 Truth -in -Taxation Estimates $256,958 Homestead (Eagan avg.) Plymouth Eden Prairie Mendota Heights Eagan Minnetonka Woodbury (est.) Maple Grove C'nnn Rapids (act.) Lakeville Bloomington 18 -City Average Burnsville South St. Paul Inver Grove His Apple Valley Rosemount Brooklyn Park Hastings West St. Paul 624 742 750 773 775 787 823 RgA 919 924 941 942 1,016 1,056 1,062 1,084 1,206 1,305 1,310 $0 $400 $800 $1,200 $1,600 24