01/23/1986 - City Council Special
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MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
JANUARY 23, 1986
A special meeting of the Eagan City Council was held on Thursday, January
23, 1986 at 9:10 p.m. at the Eagan Municipal Center. Present were Mayor Bea
Blomquist, Councilmembers Smith, Egan, Wachter and Ellison. Also present were
City Administrator Tom Hedges and City Attorney Paul Hauge.
SPERRY PROPOSAL
Mayor Blomquist announced that the one of the purposes of the meeting was
to discuss the proposal of the Sperry Corporation to locate a marketing
facility in the City of Eagan on the Sperry property at Pilot Knob Road and
Yankee Doodle Road. Tom Hedges reported to the City Council concerning his
findings relating to the Sperry proposal. He indicated that he had made
contact with the Department of Energy and Economic Development requesting
information regarding grants for the proposed development. The Economic
Recovery Act and Diversification Act may offer available funds including loans
or outright grants.
He reviewed with the City Council a list of possible areas in which the
City could assist Sperry in the development of the project, most of which
involves internal costs within the City. An exception would be the SAC charge
and noted the trailway is uncertain, but may be a necessary City expenditure
in any event because it connects two City parks. He further mentioned that
full tax increment financing or 50% tax increment financing are two potential
avenues of covering the City's costs or in the alternative, internal TIF
without the sale of municipal bonds or site development under TIF financing.
Some of the reasons for the proposed offer of incentives to Sperry
included the fact that the plant has been located in Eagan for 20 years, it
has been a solid corporate citizen, there is a possibility of jobs leaving the
state, there would be a positive impact on business within the City and the
State of Minnesota, Sperry has participated in a flexible workday schedule for
its employees to relieve the impact on local roads, the roadway system is
either in place or has been planned, public and fire protection have been
provided for or is planned to accommodate increases in employment in the area,
Sperry has land available and has been designated for many years for Research
and Development park.
The question that was raised was to what extent would the Council commit
itself and what form of incentive would be offered to Sperry for the location
of the plant within Eagan.
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Special City Council Minutes
January 23, 1986 0002?
Each Councilmember expressed his or her opinion as to the type of
incentives, if any, that they would favor, including 50% tax increment
financing by Councilman Smith. Councilman Ellison did not favor any special
incentives to Sperry and Councilman Egan was concerned what precedent tax
increment financing would create if allowed in a non-blight area. Councilman
Wachter and Mayor Blomquist recommended incentives indirectly which would in
effect, be paid through City financing over a period of several years,
possibly without tax increment financing. The City Administrator was
requested to explore the possibilities of financial assistance from MEED and a
meeting was scheduled including the Mayor and City Administrator with MEED
officials for January 27, 1986 with report back to the Council.
CLERICAL AND DISPATCHER BARGAINING UNIT
Mr. Hedges made a presentation to the City Council regarding the demands
from the Clerical and Dispatcher Collective Bargaining Units and was given
direction by the Councilmembers regarding future negotiations without any
formal action being taken by the Council.
ADJOURNMENT
Upon motion being duly made and seconded, the meeting adjourned.
PHH
City lerk
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