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10/17/1995 - City Council Special 71 MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota October 17, 1995 A special meeting of the Eagan City Council was held on Tuesday, October 17, 1995 at 5:00 p.m. at Black Hawk Middle School. Present were Mayor Egan and Councilmembers Awada, Wachter, Masin and Hunter. Also present were City Administrator Tom Hedges, Director of Public Works Tom Colbert, Community Development Director Peggy Reichert, Assistant City Attorney Mike Dougherty, and Finance Director Gene VanOverbeke. LIVABLE COMMUNITIES ACT Administrator Hedges reviewed the Livable Communities Act, noting that the issue to be considered Is whether there is any merit to clustering and having one set of uniform goals for housing. The Met Council hasn't been very receptive to this concept. Community Development Director Reichert added that other cities in Dakota County will be participating and she feels it would be better to fist general goals rather than providing percentages. She noted that the Planning Commission will be giving a formal recommendation. Councilmember Awada stated she should like to see what areas the city is lacking in and what that means in practical terms. Community Development Director Reichert reviewed some examples of what the city is lacking in and what the city can do. She noted that the townhouse units that are being built will help the density figures. She also noted the city won't be building more apartments because there isn't any land left for them. She noted they will work with Section 8 certificates and some other things to work towards affordable housing. Administrator Hedges added that each community has individual characteristics that make their situations unique. Eagan has 361 wetlands which is a factor. Councilmember Hunter stated he feels the Met Council is legitimately concerned about clustering. He doesn't want to spend a lot of time lobbying them for clustering when the city could be working on their own goals. Some discussion followed. BUSINESS OUTREACH MEETINGS Administrator Hedges reviewed the dates and locations of the upcoming business outreach meetings, noting that the purpose of these meetings is to reach out to the business community and see what their concerns are. He noted that 1,500 invitations have been sent to business owners in the community. Some discussion followed. PROMENADE PROJECT Community Development Director Reichert noted that the Environmental Assessment Worksheet was published today and that there is a 30 day comment period. They are working on road improvements, streetscape options and the preliminary planned development. Director of Public Works Colbert reviewed the east-west extension of Denmark Drive. He suggested it be called Northwood Drive and councilmembers concurred. Councilmember Wachter asked about a spot for the Convention and Visitors bureau in this project, and Community Development Director Reichert noted the CVB has been in contact with Opus about that. She added that they are trying to get Opus to start working on the small shops portion of the project. Director of Public Works Colbert noted that on the north side of Northwood Drive, the property owner is working with a developer to come back with a development. The bulk mail center has purchased property on the edge of that development, which frees up the west property for a frontage road for I-35E. Councilmember Awada asked about putting houses along the freeway north of Northwood Drive. Community Development Director Reichert noted that the Comprehensive Plan calls for residential in that area. Councilmember Masin expressed her displeasure with this plan. She indicated she would like to see examples of shopping centers where innovative parking methods are used, and she would like them forwarded to EAGAN SPECIAL CITY COUNCIL MINUTES; OCTOBER 17, 1995 PAGE 2 Opus before this project gets built. She noted that Opus was supposed to work on the plan and she doesn't feel that has been done. It is still a large strip mall and she doesn't like It. Counclimember Awada stated she doesn't like the plan either, and would like to see what Opus has done to improve this project. She noted that she and Council member Masin voted for this reluctantly. Community Development Director Reichert noted that the strip mall and parking are still the same. Those are the fundamental elements of their plan. It will do no good to send Opus information on underground parking or parking In the back because that should have been discussed a year ago. Suggestions were made to Opus and some things they could bend on and others they can't. They are working on some changes, but the fundamentals are the same. Director of Public Works Colbert added that they are working on some of the amenities such as the entrances, towers, etc. Discussion followed on the project and comparisons to the Woodbury mall. Councilmember Masin stressed that she feels very strongly that there are better ways to do this project than with the parking in the front. OPTION AGREEMENT/NORTHWESTERN MUTUAL UFE INSURANCE COMPANY Administrator Hedges noted that the owner of Carriage Hills golf course received a cash offer for residential development. He told the owner that the Council would like to explore the possibility of purchasing the course over the next 90-120 days. He stated he had hoped to come back to the Council with a feasibility report at a workshop in November, noting the city doesn't have the market analysis information of golf courses. The City would then have had informational meetings In November and December. He noted that the owner of Carriage Hills wants to exercise their option tomorrow. He noted that Northwestern Mutual also has had some offers on their property and the golf course situation seems to be changing daily. He reviewed the chronology of what has happened on the issue of a golf course to date and what was planned for future months If the dual track approach to obtaining a golf course were still pursued and available. Assistant City Attorney Dougherty noted that the city made an offer to Northwestern Mutual with a 120 day option. Northwestern Mutual Indicated they want to take the high offer which was not the city's offer. He noted that a purchase agreement still has to be put together between the two parties and if they can't work one out, they may still want to consider the city's offer. Community Development Director Reichert noted that this area was planned for an industrial park and she is concerned about who is buying this property and what they will use it for. Administrator Hedges added that the property abuts Industrial and is closer to the noise corridor. Ray Connolly, a local developer, reviewed what it would take and how much it would cost to develop the Northwestern Mutual site. Councilmember Wachter expressed some skepticism about whether there are other offers on the property. He finds it strange that this property has been vacant for so many years and now that the city has expressed an interest, there are other offers. Discussion followed concerning whether this Is being done to speed up the Council's decision. Councilmember Wachter stated he doesn't want to make a decision like this on such short notice. The Council represents the citizens and they should know about it. Administrator Hedges stressed that the Council needs to look at the next 10-20 years. The Park Systems Plan calls for a golf course. The City will grow to 60- 70,000 people and it won't have a golf course If Carriage Hills goes residential and there is no option on the Northwestern Mutual property. Mayor Egan stated he feels the safest course of action is to try to hold onto Carriage Hills and suggested that perhaps the city could make a cash offer to hold it. That would allow the flexibility to explore options on the Northwestern Mutual property. Councilmember Hunter asked what rights the property owners have to change the Comprehensive Guide Plan for the Carriage Hills property. Assistant City Attorney Dougherty noted that the owner has a use of his EAGAN SPECIAL CITY COUNCIL MINUTES; OCTOBER 17, 1995 PAGE 3 property. He has to convince the Council that it would be a better use with the change. Councilmember Hunter added that the applicant has the burden of proof that he doesn't have reasonable use of his property. Administrator Hedges pointed out that if the city issued bonds for the purchase of Carriage Hills, the golf course wouldn't pay for itself at the current price. Councilmember Masin suggested the city go back to Northwestern Mutual and offer them more money and it might be considered. If the property isn't used for a golf course, it could be used for a central park. Councilmember Awada stated that the main issue is that the consultants have said that Carriage Hills is not economically feasible at the price being asked. It would take a lot of convincing for her to agree to pursue that. She feels the only option is to offer more money to Northwestern Mutual. She feels the city can wait to see how the Carriage Hills offer pans out. Community Development Director Reichert noted that even if the city decided not to put a golf course at that location, the city could hold the Northwestern Mutual property for 10 years for an industrial park. Land is going fast in Eagan. There aren't any other properties of this size in such a prime location. Councilmember Hunter noted that the Council was elected to make these decisions on their behalf, and the Council needs to be prepared to make these decisions. Assistant City Attorney Dougherty noted that the city wouldn't be obligated for the purchase price until the closing in case the city decides not to buy it. The owner can keep whatever money was put down. Councilmember Masin noted she would not consider rezoning Carriage Hills until this situation is resolved. After some discussion as to what amount should be offered, Administrator Hedges suggested that if the Council gives direction to negotiate a price on the property, it would be somewhere between what the city originally offered and market value. Councilmembers concurred with the direction to negotiate for a higher offer on the Northwestern Mutual property. WORK SESSIONS SCHEDULE FOR REMAINDER OF 1995 Administrator Hedges reviewed the schedule of work sessions for the remainder of 1995 and the suggested topics to be discussed at each work session. Some discussion followed. The meeting adjourned at 6:30 p.m. to the regular Council meeting. DLP October 17, 1995 Date City Clerk