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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. 00109 Page 21Eagan Special City Council Meeting Minutes 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 001.10 Page 3/Eagan Special City Council Meeting Minutes April 11, 2000 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. 00111 Page 4/Eagan Special City Council Meeting Minutes April 11, 2000 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 00112 Page 5/Eagan Special City Council Meeting Minutes April 11, 2000 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 00113 Page 6/Eagan Special City Council Meeting Minutes Apri/11, 2000 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 00114 Page 7/Eagan Special City Council Meeting Minutes April 11, 2000 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. 00115 Page 8/Eagan Special City Council Meeting Minutes April 11, 2000 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 0011.6 Page 9/Eagan Special City Council Meeting Minutes April 11, 2000 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 ~ '~wJo City Clerk JV