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03/06/2000 - City Council Special 00070 MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL EAGAN, MINNESOTA March 6, 2000 A special meeting of the Eagan City Council was held on Monday, March 6, 2000 at 4:45 p.m. at the Municipal Center. Present were Mayor Awada and Council members Blomquist, Carlson and Masin. Councilmember Bakken was absent on military duty. Also present were City Administrator Hedges, City Attorney Dougherty, Director of Finance VanOverbeke, Director of Public Works Colbert, Assistant City Administrator Verbrugge and Senior Planner Ridley. AGENDA Councilmember Carlson moved, Council member Blomquist seconded the motion to approve the agenda as presented. All members voted aye. VISITORS TO BE HEARD Mayor Awada asked if any member of the audience wished to address the Council regarding matters not on the agenda. There were no visitors to be heard. VILLAGE PLAZA REDEVELOPMENT CONCEPT DISCUSSION (CedarffH 13) City Administrator Hedges introduced the Village Plaza Redevelopment Concept discussion and provided background regarding the Cedar Avenue and Highway 13 Redevelopment Task Force. He further stated that, as directed by the City Council, Assistant City Administrator Jamie Verbrugge made presentations before the Advisory Planning Commission, the Advisory Parks and Recreation Commission, the Airport Relations Commission, and the Economic Development Commission to explain the recommendations contained within the Village Plaza Concept Report. City Administrator Hedges discussed the format for the Village Plaza discussion and introduced the City's Planning Consultant Greg Ingraham, City Attorney Mike Dougherty, and Financial Advisory Dave MacGillivray of Springsted. He stated that each of these advisors would be presenting on various aspects of the implementation steps that would be necessary to move forward with any proposed redevelopment. Planning Consultant Greg Ingraham said that he was going to speak more to the redevelopment in general rather than the specifics of the Village Plaza Concept. He talked about the ingredients of success in redevelopment and stated that the big picture framework for land uses in the redevelopment district is created by the City. He further stated that design Special City Council Meeting Minutes March 6, 2000 Page 2 00071 . guidelines should be established because the quality of the public realm, for example; streetscapes and open spaces, influences the quality of the architecture. Mr. Ingraham also discussed the need to have a long term financing plan. He stated that the public typically assists with land acquisition, as well as relocation and infrastructure improvements. He stated that the commitment of the City to the redevelopment process will influence the level of interest that a developer will show for a project. Mr. Ingraham also discussed the notion of entrepreneurship, which would mean a partnering of the public sector with the private sector to establish a vision for the redevelopment. He stated that this entrepreneurship will help to develop creative and capable partners. Mr. Ingraham then discussed the issue of timelines for the redevelopment district and the need to be patient and consistent. Redevelopment districts are long term endeavors, he said, and seven to ten years is not unusual for a project area. Planning Consultant Ingraham then went on to discuss the characteristics of a successful redevelopment. He stated that he could not emphasize enough the need for a shared vision and support from the City Council, staff, business community and the public. He sighted, as an example, his work in St. Louis Park where a week long charette process was used to involve the community and create support. He further stated that one of the difficulties of redevelopment is dealing with change and the expectation that stakeholders may have for a place to remain the same as it always has been. He said the public debate typically focuses on the negatives and not the positives of redevelopment. He said it was important to share the vision and the reason for revitalization efforts. Mr. Ingraham also discussed the ability to balance property owners' interests with the goals of revitalization. He stated that the City must recognize that some uses will be relocated or eliminated, and that these acquisitions must be handled professionally and fairly. He said the City also must have the ability to condemn, even if the need never materialized. Finally, Consultant Ingraham continued his discussion of characteristics of a successful redevelopment by stressing that consistent communications are necessary to keep everyone informed throughout the process. The worst thing for businesses, he said, is being surprised. Mr. Ingraham went on to discuss the need to have a redevelopment plan with legal standing. He said that it is important to include design guidelines to get conformance with the vision when amending the Comprehensive Guide Plan and zoning status. Regarding a financing plan, Mr. Ingraham stated that the long term benefits must justify the costs of any redevelopment. He stated that it was important to stay true to the vision and when dealing with interim uses, remodeling and expansion, and other development proposals, that suitability based on the design guidelines must be reviewed on a case by case basis. Mr. Ingraham stated that density and intensity is a requirement of success. He also stated that the City needs to recognize that traffic equals economic vitality. A balance in traffic distribution can be achieved with a mix of land uses, but low traffic is synonymous with economic failure. He discussed the need to have an affective first phase project to create excitement and enthusiasm for subsequent phases. Planning Consultant Ingraham concluded by discussing the alternatives to plan redevelopment which include a stable or declining real estate valuation, remodeling of Special City Council Meeting Minutes March 6, 2000 Page 3 00072 existing businesses, redevelopment of unplanned use, and that redevelopment needs simply will not go away. City Attorney Mike Dougherty was present to discuss land use issues as part of any redevelopment. He stated the first step was to address the Comprehensive Guide Plan that currently exists. There are six different classifications in the project area, he stated, none of which really match the uses in the area. The update of the Comprehensive Guide Plan also does not match the uses. City Attorney Dougherty stated that a special area designation would require zoning within nine months according to state statute. He stated that, in addition to the mismatched guide plan classifications, there are a number of zoning districts in the project area that are unmatched with existing uses as well. He further stated that the proposed redevelopment is an opportunity for the City Council to regulate development in the area. He went on to state that this process will occur while there are property owners that may want to build or remodel, and that the City Council needs to address those issues. City Attorney Dougherty concluded by asking the Council to consider if it will set policy for invoking eminent domain when discussing the public financing of a project or the improvements to public infrastructure. The City's Financial Consultant, Dave MacGillivray of Springs ted, stated that he works with a number of municipalities that have experienced redevelopment. He said it was interesting to note that in the past twenty years most redevelopment had incurred in the inner- city and first ring suburbs, but that the last five years has seen much more redevelopment in cities such as Minnetonka, Plymouth and other outer ring suburbs. Mr. MacGillivray stated first that it is important to keep in mind that redevelopment projects are costly and require significant public investment. He further stated that these projects take a long time and that the Task Force recognize that when envisioning a process that could possibly take twenty years. Mr. MacGillivray stressed the importance of partnering with private parties and said it is ill advised for a city to go forward without the private sector. He said that the public and private sectors need each other to do the project right and that any redevelopment would essentially be market driven. He also stated that redevelopment projects are risky and that it is important to manage risk properly as public stewards. Mayor Awada asked Mr. MacGillivray if he had looked at the financing possibilities for the Village Plaza Concept. He stated that he had and that with a preliminary estimated net cost of $16 million, the land uses could conceivably cash flow with General Obligation Tax Increment Financing Bonds on a 25 year redevelopment district. Mayor Awada said she is very supportive of redevelopment and that the Task Force's vision was consistent with the Council's desire at the beginning of this process. She stated that her question all along had been whether the project would work financially. Mayor Awada further discussed what immediate steps are necessary and asked if the Comprehensive Guide Plan changes are the priority. City Attorney Mike Dougherty stated that yes, the Comprehensive Guide Plan issues needed to be addressed first. Mayor Awada opened the discussion to the City Council by asking if the vision was consistent with their views. Council member Blomquist said there was much in the concept 00073 Special City Council Meeting Minutes March 6, 2000 Page 4 that she liked, but felt there was too much retail and was disappointed that nothing had been done with the Highway 13 and Silver Bell Road access area. Public Works Director Colbert said that only one access will be allowed by MnDOT and that is the access at 13 and Silver Bell. He further stated that in 1994 or 1995 and access study was done. He said that a combination of physical improvements and traffic management approaches would improve the congestion at Highway 13 and Silver Bell Road. He also discussed the future signalization of Blackhawk Road and Highway 13 and the possibilities for directing some traffic to that area. Council member Blomquist asked about the traffic being produced in the concept. Public Works Director Colbert responded that the types of development envisioned would maximize the capacity of the access point by utilizing the reverse peak period movements. He stated that office uses would bring people in the morning and out in the evening, which is the opposite of the existing traffic pattern of residential uses leaving in the morning and returning in the evening. Councilmember Carlson said that she really liked the plan and felt that the redevelopment must have intensity of uses. She asked why three story retail wasn't considered as opposed to just the two stories in the Village Plaza Concept. She also mentioned that the possibility of a teen center at a new community facility in the City central area might mean removing it from the Cedar/13 Concept proposal. She further stated she liked the amount of green space in the concept and understands Councilmember Blomquist's concerns, but stated there will be residential uses to support the additional retail. Assistant . City Administrator Verbrugge further clarified that retail uses would be the last component of a phased development so that the residential and office/hotel uses would be in place to create the economic support necessary for a retail area. Council member Masin asked more questions related to traffic congestion. Council member Carlson pointed out there is a back door to the Cedarvale district on Nicols Road that could perhaps make it easier to get out another way. Public Works Director Colbert stated that the problem is peak periods and that traffic going up Nicols Road would run into the congestion of Diffley and 77. Mayor Awada asked if the Silver Bell Road and Highway 13 re-alignment would be a necessary first step. Public Works Director Colbert recommended that it should be the first step because Beau D' Rue Drive is already distressed bituminous surface and needs to be rehabilitated. He further stated there wouldn't be a lost investment by proceeding now. Councilmember Masin stated that she did not want to make the same mistakes as were made with the central area. Council member Blomquist said she felt there was a need to slow down and get more input from the community. Councilmember Carlson stated she felt it was important to go forward in an effort to flush out the concept. Mayor Awada pointed out that the re-alignment of the roads would require acquisition of several homes. Special City Council Meeting Minutes March 6, 2000 Page 5 00074 Councilmember Carlson passed out a handout with possible recommendations for moving forward. Council member Blomquist stated that she wanted to work with the Commissions rather than passing the responsibility for addressing many of these issues to them. Councilmember Carlson stated that she wanted to tap into the fresh ideas that Commission members might have. Mayor Awada stated that the City Council had run out of time for this agenda item and asked to schedule another Special City Council meeting to continue discussions. Mayor Awada moved, seconded by Councilmember Carlson, to schedule a Special City Council meeting for Tuesday, April 11, 2000 at 5:00 p.m. The motion passed on a 4 - 0 vote. COMMENTS FROM CAROLYN RODRIGUEZ, METROPOLITAN COUNCIL REPRESENTATIVE Due to the lateness of the special meeting, Mayor Awada moved and Council member Carlson seconded to reschedule the agenda item to meet with Metropolitan Council Representative Carolyn Rodriguez to March 21,2000 at 5: 30 p.m. The motion passed unanimously. JV MARCH 6, 2000 Date 1I1~15oAda City clerk