04/11/2000 - City Council Special
MINUTES OF A SPECIAL MEETING OF THE
EAGAN CITY COUNCIL
Eagan, Minnesota
00108
April 11 , 2000
A special City Council meeting was held on Tuesday, April 11, 2000 in the City Council
Chambers of the Eagan City Hall. The meeting was called to order at 5:03 p.m. Those present were
Mayor Awada and City Councilmembers Bakken, Blomquist and Carlson. Councilmember Masin arrived
at 5:16 p.m. Also present were City Administrator Hedges, Assistant City Administrator Verbrugge, Public
Works Director Colbert, Finance Director VanOverbeke, Police Chief Therkelsen, Senior Planner Ridley
and Communications Coordinator Foote.
AGENDA ADOPTION
The agenda was approved as presented.
VISITORS TO BE HEARD
There were no visitors wishing to address the City Council regarding items not on the
agenda.
TEEN TASK FORCE
City Administrator Hedges introduced the issue regarding the Eagan teens anti-smoking
efforts and provided a recap of the recently held Youth Summit. City Administrator Hedges discussed the
response of the Eagan Police Department to concerns expressed regarding teen smoking at a local
Perkins Restaurant, and stated that Perkins was cooperating fully with the Police Department's efforts to
limit underage smoking in their establishment.
City Administrator Hedges introduced Brandon Nguyen and Karen Luchka. City
Administrator Hedges stated that Mr. Nguyen and Ms. Luchka are Eagan teens who have been very active
in promoting healthy teen initiatives in the community. Mr. Ngyen and Ms. Luchka then addressed the
members of the City Council, stating that the presentation they had was a three-pronged approach to help
teens.
Ms. Luchka stated that the first initiative would be to begin a teen task force in Fall, 2000.
The purpose of the teen task force would be to work towards anti-smoking compliance checks and other
anti-smoking initiatives. The second issue that Ms. Luchka discussed was public education to raise
awareness of the impact of adult smoking on youth. She stated how important teens felt it was for adults
to take the initiative and set a positive example, and to speak up when they see teens engaging in
unhealthy behavior. Mr. Nguyen and Ms. Luchka then distributed their report on a teen center initiative.
They sited numerous statistics in the report based upon their research as reasons and models for teen
centers in other communities. They further stated that Eagan was in real need of a similar center and that
. existing programs do not meet the total needs of the community.
Councilmember Blomquist said that these items had been on the agenda of the City
Council for a while and that the teen task force is a great idea. Ms. Luchka said that October would be a
good time to start a teen task force because students will be returning to school and that will provide some
time to organize efforts. She further stated that bi-weekly meetings of the teen task force would be most
effective. Mayor Awada agreed with Ms. Luchka that this fall was a good time to start and asked staff to
put together a plan for how the teen task force would function, specifically how appointments would be
made and how the task force would be administered. City Administrator Hedges said that the new
Administrative Intern, Ben Kristensen, would be available to work on this project. He further mentioned
the very positive discussions that had occurred at the Intergenerational dialogue regarding these types of
issues. City Administrator Hedges concluded by stating that a motion to direct staff would be appropriate
at this time.
Councilmember Blomquist moved and Councilmember Bakken seconded a motion
directing staff to begin coordinating a teen task force for this fall. Councilmember Bakken further
suggested that staff should also put together a press release, include information on the web site and put
a blurb in the newsletter regarding the teen task force. The motion passed unanimously.
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April 11, 2000
VILLAGE PLAZA
City Administrator Hedges introduced the issue of Village Plaza redevelopment
discussion and indicated what staff where present to discuss the various items on the agenda. Planning
Consultant Greg Ingraham began by discussing zoning issues for the Cedar Avenue and Highway 13
redevelopment study area. He provided a brief history of the comprehensive guide plan amendment and
identification of the' Cedarvale study area as "Special Area" until a plan was flushed out. Mr. Ingraham
recommended adopting the Village Plaza Plan as basically a miniature comprehensive plan, including
guiding principles and policies as well as a sub area plan to set the stage for future zoning.
Planning Consultant Ingraham then discussed three different approaches that the City
Council might wish to take regarding the land use changes for the Greater Cedarvale Area. The first
approach would be to identify the study areas of planned unit development which would allow for flexible
zoning districts. The next approach would be to create a single zoning district for the entire area. A third
approach that Mr. Ingraham suggested was to create four or five new zoning districts specific to land use
areas. The idea of this last suggestion is to allow existing districts to remain and prosper while developing
the vision for the entire area further.
City Administrator Hedges then introduced Senior Planner Ridley to discuss design and
performance standards. Senior Planner Ridley stated that he had researched other communities' zoning
performance standards. There is a wide range from controls to no controls that are employed by the
various communities. Senior Planner Ridley stated that the question is how specific does the City Council
want to be, understanding that each development would be subject to the standards imposed.
Councilmember Carlson asked if the recommendation is to keep a Special Area
designation for the Cedarvale Redevelopment Area. Mr. Ingraham stated that he did recommend keeping
that designation and further recommended adding detail to it. Mayor Awada asked if just adopting the
Village Plaza Plan was enough. Mr. Ingraham stated that it was not enough to just adopt the plan and the
task force's report, but that the City should create a district plan and include some components of the
Village Plaza Plan. Senior Planner Ridley further explained pages 8 and 9 in the packet relating to this
issue. Councilmember Carlson asked if the recommendation was like the area plan adopted for the Lone
Oak area. Senior Planner Ridley stated that she was correct.
Mayor Awada asked about design standards for the redevelopment. Senior Planner
Ridley said that he would provide a detail of different types of standards used in other communities and
that the City Council would be able to work off that list.
City Administrator Hedges then introduced Assistant City Administrator Verbrugge to
discuss a draft timeline for next steps in the redevelopment process. Assistant City Administrator
Verbrugge said that the most immediate priority was to begin analysis of the Silver Bell Road and Beau
d'Rue Drive intersection realignment. He further stated that the traffic access to the redevelopment area
would be key to the success of any development. Assistant City Administrator Verbrugge then discussed
the possibility of retaining a Project Management Consultant for the redevelopment. The purpose for the
Project Manager is to provide a level of expertise and experience in redevelopment that is not fully
available from existing staff. Verbrugge stated that he and the City Administrator, along with the Finance
Director and Senior Planner, had met with Ehlers & Associates to discuss their qualifications. Ehlers has
significant redevelopment project management experience in a number of communities in the metro area
and the State of Minnesota.
Assistant City Administrator Verbrugge then discussed the need for a strategic plan for
the redevelopment area. Components of the strategic plan included identification of land use issues and
the changes required; identification of infrastructure improvements; project feasibility analysis; developer
solicitation; and creation of a communication strategy for area businesses, residents and the entire
community.
Councilmember Masin asked what staff had planned in the way of partnering with area
businesses. She further stated that the Cedarvale business community was behind the request for
something to be done in the area and it was her understanding that they would be included as partners in
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the discussion. Councilmember Blomquist agreed and stated that the City needs to get working with the
businesses in the area.
Mayor Awada stated that she would like to have the City Council meet with Ehlers &
Associates before recommending that the City retain their services as Project Manager. The City Council
agreed to conduct a Special City Council meeting on Tuesday, April 25, for the express purpose of
meeting with representatives of Ehlers.
Mayor Awada stated that the City Council was opening the meeting up to public comment
at this point in time. She further stated that the previous special meeting in March lasted longer than
anticipated and many members of the public who attended the meeting did not have an opportunity to
address the City Council.
Mr. Albert Birr, 1930 Silver Bell Road, asked why the zoning for his house had been
changed without being notified. Senior Planner Ridley stated that no zoning changes had been made
anywhere in the area to date. Mr. Ted Gladhill, 1153 Blue Herring Court, addressed the City Council. Mr.
Gladhill stated that he was on the Cedar/13 Task Force, although he was speaking for himself in this
case. He asked if the zoning option #1, planned development, would protect and maintain the elements in
the Village Plaza concept if it wasn't spelled out that the whole area may be hotels, etc. and not mixed
use. Mr. Gladhill further stated that the City Council should strongly consider design standards for the
Village Plaza to approve any plan for redevelopment.
Mr. AI Arends, 2133 Silver Bell Road, asked how people would access the area with just
the Silver Bell Road and Highway 13 access point. He further stated that he didn't feel people would use
Diffley and Nicols Road as an access, and that only one access would create a huge traffic jam. Public
Works Director Colbert explained what the feasibility study for access at that intersection would include.
Mr. Birr stated that Tesseract School was responsible for traffic problems on the north side.
Ms. Betty Bassett, 2101 Wuthering Heights Road, stated she thought there would be a
plan for access presented at the meeting. Mayor Awada said that staff had not been authorized to do any
studies as yet. Ms. Bassett wished the City Council well as they move forward.
Mr. Gary Morgan, 1293 Carlson Lake Lane, stated that a feasibility study for the Silver
Bell and 13 intersection had been done roughly five years ago in cooperation with the Cedarvale
businesses. The City Council did not pursue the project then, Mr. Morgan stated, because of the need to
acquire the doughnut shop. He further stated that a plan is already on file that would work and is glad to
see that this issue is first on the list.
Ms. Doris Dahline, 3830 Alder Lane, asked why the discussion was of the intersection of
Silver Bell and Beau d'Rue and why there was no mention of Cedarvale Boulevard. Public Works Director
Colbert explained that the realignment would include Cedarvale Boulevard. Ms. Dahline then handed out
a packet of information she had prepared and sited a discussion of access difficulty on page 3.
Mr. Mark Waltman, 3625 Woodland Trail, addressed the City Council regarding a need
for affordable housing in the City of Eagan. Mr. Waltman has a company in the Cedarvale Area and has
difficulty getting employees to his business. He further stated he was not proposing low income,
subsidized housing, but instead, housing in the $125,000-$150,000 range. Mr. Tom Moline, 830 Ivy Lane,
stated that he is a retired hospital administrator who is also concerned about the availability of housing in
the City of Eagan and in the Cedarvale Area especially. Mr. Terry Stover thanked the City Council for
addressing this issue. He suggested a need to step back and think about what is down there currently
and how difficult the traffic is. He further wondered what effect the roadway improvements would have on
properties in the area, especially since he owns the corner property at Beau d'Rue and Rahn Road.
Mr. Birr suggested that people on Silver Bell Road will be wanting to go to Highway 77
and that the intersection doesn't work for that purpose. He suggested that other routes are better. Mr.
Birr stated that his land is going to be acquired by eminent domain and that instead, we should use
Cedarvale Boulevard for accessing everything. Mr. Steve Wallick, 2089 Carnelian Lane, asked the City
Council to remember that the Cedar/13 area is a gateway and it should be an exciting development.
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More discussion ensued regarding the traffic access. Public Works Director Colbert
explained more of what the feasibility study for the intersection realignment would entail. He sited the
shops at Lyndale in Richfield as an example of congestion and a decision of what level of congestion is
acceptable. He further discussed cooperation with MnDOT and the federal government regarding
Highway 13 improvements. Public Works Director Colbert reminded the audience that we were working
with a concept and the City Council has a good process for evaluating its feasibility.
Mr. Arends mentioned Freightmasters on the north side of Highway 13 and the inability to
access Highway 13 at La Fonda's makes the intersection at Silver Bell even worse.
Mr. John Fitzgerald, 3914 Beau d'Rue Drive, said he is confident a traffic solution can be
found and the intersection needs to be done now. He further stated that the Cedarvale Area represented
a significant opportunity and suggested the City Council be malleable regarding the Village Plaza concept
and future development. Mr. Fitzgerald stated that if a housing project is ready to go, it could be the
financial catalyst for the area and that the City Council should establish a redevelopment tax increment
finance district. Mr. Fitzgerald concluded by stating that ideas for redevelopment of Cedarvale had been
out there for a long time and that everyone is in a quandary, especially business tenants concerned about
their future. He stated that the City needs to move forward to alleviate the uncertainty that exists.
Ms. Lesley Chester, 2085 Carnelian Way, stated she was concerned about trees and
wooded lots that would disappear in this concept. She also stated that she would like affordable housing
in the area but is concerned that high density of affordable housing may not be a good idea. Ms. Elaine
Tyee, 1373 Interlachen Drive, spoke regarding affordable housing. She stated that the community needs
affordable housing and that people said they are okay with it as long as it's not in their neighborhood. She
further stated she was sad that Mayor Awada was not on the Metropolitan Council's Affordable Housing
Task Force and doesn't believe the Mayor wants affordable housing. She doesn't expect the City to do
housing but stated, they should include it.
Ms. Dahline spoke again to site page 3 in her informational packet expressing concern
about the Centennial Lakes type density and whether it is consistent with empty nesters. Ms. Dahline also
stated she was concerned about the impacts of noise from the new runway because folks in high density
apartments cannot enjoy tea on their balconies without being interrupted by airplanes. She further stated
that the architect drew designs of people enjoying the plaza and it won't happen because of airport noise.
Councilmember Carlson responded that she grew up on Lone Oak and has lived with airport noise her
entire life. She further discussed the sensitive nature of airport noise and stated that new residents in the
Village Plaza Concept would know what they are getting into.
Mr. Birr asked about traffic access and asked if there is a back road that trucks can take
up to Yankee Doodle behind Highway 13.
Mr. Gladhill spoke again and wanted everyone to understand that the task force did not
do an engineering design analysis of the Silver Bell Road and Beau d'Rue Drive intersection. Regarding
airport noise, Mr. Gladhill stated that any housing must be constructed appropriately just as the task force
report says.
Ms. Bassett informed the City Council that Freighmasters has an option on the land
adjacent to her property and that future development of that property will put more trucks into the
intersection. Mr. Birr again spoke about the congestion in the intersection. Mayor Awada reminded the
audience that the City Council had not reviewed any design analysis as yet. Public Works Director Colbert
stated that the feasibility report for the intersection would be a combination of engineering and design
feasibility analysis.
Mayor Awada asked if the City Council is comfortable giving direction to Planning and
Engineering to proceed. Councilmember Masin stated that she wanted a pact with businesses regarding
impacts that certain compensation will be provided and there needs to be partnership with existing
businesses. City Administrator Hedges suggested that this issue would be a good question to address to
the Project Management Consultant. Councilmember Blomquist expressed concern that the proposed
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timeline was too fast.
Ms. Dahline quoted Assistant City Administrator Verbrugge from newspaper reports and
asked about acquisition of properties at fair market value, as well as acquisition and relocation costs being
1 Y2 to 2 times estimated market value. Planning Consultant Ingraham stated that those numbers are
fairly consistent with what other communities have experienced. He further talked about the need to
remember that a redevelopment is a long-term vision and that this will be a long process in which
conditions are guaranteed to change.
Mayor Awada stated that redevelopment is scary for the community and for the City
Council.
Public Works Director Colbert stated that the request for a consultant for the design and
engineering feasibility study would be on the City Council's agenda the following Tuesday. He further
stated that a logical timeline would be to have a public hearing on July 18, which would allow enough time
for a study to be completed.
Councilmember Bakken moved and Councilmember Carlson seconded to direct staff to
move ahead with the proposed traffic study and the proposed comprehensive guide amendments. The
motion passed unanimously.
Mayor Awada temporarily adjourned the meeting at 7:20 p.m. The City Council then
reconvened at 7:40 p.m.
COMMUNITY FACILITIES TASK FORCE
City Administrator Hedges provided background regarding the City Council's request to
meet with the Community Facilities Task Force. He further stated that the Communications Plan for the
Central Park Facilities bond referendum is ready for review. A final point for discussion, according to City
Administrator Hedges, was a list of questions from Coi.mcilmember Blomquist regarding the appointment
process for the Community Facilities Task Force and whether the City conformed with State Statute
regarding proper approval of the bond referendum special election.
Mayor Awada asked if someone had accused the City of violating State Statute regarding
the referendum election. Councilmember Blomquist said it was a general question and she wanted to
address all of the questions at one time. City Administrator Hedges stated that City Attorney Sheldon was
present and available to answer questions. Councilmember Blomquist said she had some questions
because she wasn't involved in the task force and wanted clarification of the process.
Communications Coordinator Foote stated that the City Council provided a list of
stakeholders and publicized in the paper to have at least two at-large citizen representatives on the task
force. She further stated there were five respondents who served as at-large representatives.
Councilmember Blomquist asked about the survey form that had been sent out and stated
that some people said they never saw it or found the form. Councilmember Blomquist further stated that
she was concerned about the $135 per square foot lease rate for office space in the facility, commenting
that the amount of storage space in relation to space for teens and seniors is a vital consideration.
Councilmember Blomquist expressed that leased revenues will not go back to residents paying bonds on
the facility. Mayor Awada commented that the City Council had not yet decided policies regarding the
operating revenues and expenditures.
City Attorney Sheldon stated that State law was followed in forming the task force. He
further stated there are a number of basis on which a City Council can create task forces; by ordinance,
the City is allowed to create ad hoc committees and State law gives cities the power to decide how to
operate.
Councilmember Masin asked how the task force was released. Mayor Awada responded
that the task force had completed its work. Councilmember Masin asked who it was that requested the
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task force to be released. Mr. Clyde Thurston, Chair of the Community Facilities Task Force, said several
task force members wanted to move to an advocacy role and wanted to make sure there is no question of
who they were representing. Councilmember Masin asked if there was any precedent for other task
forces advocating for bond referendums.
Councilmember Masin commented that the task force's public meeting was held at the
same time as a City Council meeting and she felt that shouldn't have happened. Communications
Coordinator Foote explained that the task force had a regular meeting schedule of Tuesday nights and
that the Fire Administration Center was available that night.
Councilmember Masin stated that the task force did good work, but that the interaction
with the City Council was unusual. She further stated that this is a City Council issue about why they
never met with the task force. She further asked why the task force hadn't met with the Advisory Parks &
Recreation Commission or other commissions. Communications Coordinator Foote explained that many
of the APrC members were present at task force meetings. Councilmember Masin asked if a majority of
APrC members were present at task force meetings, did that constitute an open meeting violation? City
Attorney Sheldon said that no open meeting violation occurred.
Councilmember Blomquist said she would have liked to see interaction or joint meetings
with the Community Facilities Task Force. She further stated that the City Council had in the past done
that frequently, and that the City Council was doing less and less of it. Mayor Awada commented that
other than the last meeting with the Cedar/Highway 13 Redevelopment Task Force, the City Council did
not meet with them.
Councilmember Carlson said she was pleased with the task force report and it was the
people's project, which didn't need her help. Councilmember Masin said that her concerns were not a
reflection of the task force, but with the City Council and staff. Mayor Awada commented that this item
was on the agenda specifically so that Councilmembers Blomquist and Masin could have their questions
answered.
Mr. Thurston then provided an overview of the task force recommendations. He used
drawings of the area to show the basics of where everything would fit together, starting with Option A and
comparing it to the various sitings of uses included in Option B. Both options included a community center
of roughly 80,000 square feet.
Councilmember Masin mentioned the need for handicapped accessibility because other
parks in the community are not handicapped accessible. Mr. Thurston said that the task force shared that
value.
Communications Coordinator Foote presented an outline of the Communications Plan for
the bond referendum election. She stated that the community center fits with Council Goal #2 in the City
Council's Goals document.
Councilmember Masin stated that referendums frequently miss many people.
Mayor Awada asked about a press release to publicly thank the Community Facilities
T ask Force for their work. City Attorney Sheldon said consideration of such a release was questionable to
the high burden the City must meet in publishing content-neutral material. He further stated that thanking
the task force was not typically done for other task forces, for example the Cedar/13 Redevelopment Task
Force and it was too close of a call to permit.
Council member Carlson stated that a letter without all the information is a $5,000
endeavor that could be achieved better by sending with the Experience Eagan newsletter. City
Administrator Hedges said he tended to agree with that observation. Councilmember Carlson further
suggested that the City Administrator provide public service announcements at future meetings of the City
Council similar to those provided for Census 2000.
Councilmember Bakken moved and Councilmember Carlson seconded to adopt the
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Communications Plan without the letter and making corrections to the bond amount and City Council
updates. The motion passed unanimously.
CITY COUNCIL PROCEDURES DISCUSSION
City Administrator Hedges introduced the agenda item. Councilmember Bakken stated
that he is comfortable trying something different in the manner in which the City Council conducts its
proceedings as long as everyone agrees to abide by the procedures that are in place.
Councilmember Bakken moved and Councilmember Carlson seconded to adopt the
format for treatment of Consent Agenda items that the City of Burnsville utilizes.
Mayor Awada stated that the Burnsville Mayor said that in order to pull any item from the
Consent Agenda, staff must be notified and the applicant must be notified before pulling an item. She
further stated that the item is then placed at the end of Consent consideration. Mayor Awada stated that
Burnsville's process is more strict than the City of Eagan because no discussion is allowed on Consent.
Councilmember Blomquist said she is comfortable with the Burnsville model and was
comfortable that no vote was necessary to pull items from the Consent Agenda. Council member Masin
suggested the Consent Agenda should be used for very limited items. Mayor Awada commented that
most communities actually have more items on the Consent Agenda than does the City of Eagan. She
further commented that audience members in Burnsville can pull items without notification from the
Consent Agenda.
Councilmember Blomquist stated in the early 80's, the City Council would place pulled
items on Old or New Business unless the applicant present requested otherwise.
Councilmember Bakken stated that he wanted absolute assurance of a 24 hour advance
notice for pulling agenda items. Councilmember Carlson asked if the request came at 4:00 p.m. on a
Monday afternoon and no answer was provided, how the 24 hour notice requirement would be considered.
Councilmember Bakken modified his comment to noon of the business day prior to the meeting. City
Administrator Hedges discussed the usual request for questions that he receives on a particular agenda
item.
Councilmember Carlson stated she was still concerned about the advance time notice
issue. Councilmember Masin stated that the bottom line is if a Councilmember wants to vote against an
item on the Consent Agenda, to pull it and vote. Mayor Awada commented that the nature of the way the
City Council relates means that absolute rules are important.
Councilmember Masin stated she would prefer no time notice, just an understanding of
courteous notice to other Councilmembers. Councilmember Bakken moved and Councilmember Masin
seconded to follow the Burnsville Consent Agenda procedure with a courtesy 24 hour notice, if possible, of
intent to pull agenda items, as outlined on page 21 of the Council packet. The City Council approved the
motion on a 4-1 vote. Mayor Awada voted against the motion because of the no time limit rule.
Councilmember Masin moved and Councilmember Blomquist seconded to add a section
to the agenda for reports from City Councilmembers or the City Administrator, similar to what used to be
reported during Round Table.
Councilmember Carlson stated that it would need to be specifically addressed that the
City Council update would not include or allow any motions. She further stated that she would like to give
it a try and have the item right before Department Head Business on the regular agenda.
City Administrator Hedges commented on page 36 in the Council packet, in which the City
of Minnetonka has special matters, City Manager Report, and Citizens Not on the Agenda.
Councilmember Blomquist said that materials and information can be provided to the City
Council or the City Administrator in advance.
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The Council approved the motion on a 4-1 vote. Mayor Awada voting against.
KOLLOFSKI ADDITION
Councilmember Blomquist asked if clean-up of the Imre property would constitute an
improvement to make the parcel an eligible TIF expenditure. City Attorney Sheldon stated that if a blight
condition is cleaned up, it is not a physical improvement as intended by the Legislature. Physical
improvements would include infrastructure, demolition, etc.
Finance Director VanOverbeke summarized direction received from the City Council at
the previous meeting. He stated that staff was directed to dispose of the City-owned property to Wispark
at fair market value. The Council also directed that Wispark and Imre be allowed 30 days to negotiate a
sale of parcels on the west side of the pond from Imre to Wispark before the City would move to
condemn. Finally, Finance Director VanOverbeke stated that the Council directed staff to look further into
the parcels on the east side of the pond and their continued eligibility within the tax increment finance
district.
Finance Director VanOverbeke summarized the State Statute definition of improvement
for the four year knock-down rule. He further stated there is also a five year limit for spending money on a
given parcel or within the entire district. He summarized that the four year constraint is on the revenue
side and that the five year constraint is on the expenditure side. He further stated that financial projections
for the entire district had been completed.
Finance Director VanOverbeke reported that the Commers development is generating all
of the increment in the district, while expenditures were made for homes on Lone Oak Road and for the
acquisition of homes in the Kollofski Addition and clean-up of hotels for the Wispark Development.
The Finance Director stated that there is going to be knock-down on some of the parcels
and that it most likely can't be prevented by the June deadline. He further explained the detail of the
increment being generated and the district budget. Finance Director VanOverbeke stated that the City
was in a Catch 22 position of keeping parcels in without the knock-down by spending money that it cannot
afford to spend in relation to the TIF District.
Finance Director VanOverbeke stated the recommendation is to do nothing unless the
City is guaranteed that there will be revenue coming in as a result of our action.
Mayor Awada stated that this was a good lesson learned for Cedarvale. The Mayor
asked for information relating to the Highway 55 frontage road and the timing of that road for the purpose
of keeping certain parcels eligible in the TIF District. The Mayor expressed frustration that the City
Council's decision to delay the frontage road would have an impact on the TIF District and asked why the
City Council was not advised of this problem.
City Administrator Hedges said that this was a good time to talk about Ehlers &
Associates and why City staff had asked them to consult on this issue. He further stated the City was not
fully satisfied with the service that financial advisor Springsted has been providing.
Councilmember Masin asked about the Imre parcels dropping out of the increment
finance district and then coming back in, or the possibility of creating a new district. Finance Director
VanOverbeke discussed future options related to Councilmember Masin's question.
Councilmember Masin asked if the City is going to loss money doing nothing. Finance
Director VanOverbeke stated that by spending nothing more, the City will come out slightly ahead. He
further stated that spending more money without guaranteed development would in the end be a money
loser.
Councilmember Carlson stated that a number of the parcels are developed and could
remain unless some big developer comes in to remove them. Finance Director VanOverbeke stated that
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those parcels' appreciation in value since certification of the district is generating some additional tax
increment.
Finance Director VanOverbeke again recommended that the City spend no additional
money in the tax increment finance district; however, he did recommend that the City review the frontage
road issue because it will save those parcels from the five year time test limit. Councilmember Blomquist
talked about the potential for lawsuits over the frontage road and its accompanying assessments.
Councilmember Masin asked for a memo explaining who is responsible for the last
minute information regarding the tax increment finance district.
Councilmember Bakken said that the City needs to get numbers back on the road project
to see how much the City will be spending and how keeping those parcels in will affect the TIF district. He
further stated that the parcels on the east side of the pond that are owned by the Imre's should be let go.
Mayor Awada stated the real loser in this is the Imre's and their delay in negotiating is partly responsible
for that. City Administrator Hedges stated that the City Council is right to be upset about the issue, just as
staff is upset. He further stated that lessons learned from this will prevent similar occurrences in the
Cedar Avenue and Highway 13 redevelopment.
Councilmember Carlson moved and Councilmember Bakken seconded that staff give
direction to the Imre's regarding their parcels within the tax increment finance district. The motion passed
unanimously.
The meeting was then adjourned.
APRIL 11, 2000
Date
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