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01/20/1998 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota OOG14 January 20, 1998 A special meeting of the Eagan City Council was held on Tuesday, January 20, 1998 at 5:00 p.m. in the Eagan Municipal Center Community Room. Present were Mayor Egan and City Council members Awada, Blomquist, Masin and Wachter. Also present were Planner Farnham, Associate Planner Dudziak, Senior Planner Ridley, Assistant to the City Administrator Hohenstein and City Administrator Hedges. TRUCKING STUDY City Administrator Hedges stated that the Advisory Planning Commission, at their NovemberlDecember workshops, reviewed existing and potential land uses for the four areas identified in the trucking study for further analysis. He stated that the staff is requesting direction on the APC recommendationslfindings for land uses in each of the four study uses and direction as to the preferred method for approaching the property owners to discuss potential land use changes. Senior Planner Ridley stated that the four areas are identified as: 1) inappropriate for trucking uses due to size, 2) access issues, 3) presence of significant natural features and 4) proximity to residential uses or visual corridors. Senior Planner Ridley stated that these areas were reviewed in greater detail by the APC in workshop meetings to examine existing uses and discuss potential alternative uses that may require land use and/or zoning changes. Planner Farnham elaborated on the overall general findings presented by the APC, stating that parcels within this study area are small in size making it difficult to develop without lot consolidations. She further stated that access limitations affect some of the properties since they front on state or county roadways and require certain access spacing guidelines. Planner Farnham further stated that the APC also raised concerns about reguiding many of the properties from industrial to business park for the purpose of controlling trucking and outside storage. She further commented that it was generally agreed that existing uses should be allowed to remain if the existing use is viable and would likely remain for the foreseeable future. Planner Farnham introduced the first study area, which is identified as the Burr Oaks area. She reviewed the parcels that the APC thought should be retained as industrial, those parcels to be reguided to business park and stated that Parcels #18-27 and #29-39 could be either business park or industrial. City Council member Wachter was in agreement with the recommendation of the APC that those parcels south of Yankee Doodle Road and east of 149 be reguided from industrial to business park. City Council members agreed and concluded that those areas should be business park and further that Parcels #18-27 and #29-39 should be guided as business park, recognizing that the area is a gateway to the central area. Planner Farnham presented Area #2, referred to as the McKee area, stating that the APC is recommending that the parcels (#1-6) north of Knox Lumber would be changed to business park, while the parcels (#9-12) south of Knox would be changed to neighborhood business. Mayor Egan questioned why the land area north of Knox is not designated industrial. City Planner Farnham stated that it was the recommendation of the Advisory Planning Commission that since these parcels are directly adjacent to the McKee residential, business park would be more conducive, since there is no outside storage or trucking allowed in the business park zoning district. City Council member Awada agreed with the proposed uses, stating that neighborhood business is a good designation for the northwest corner of Lexington and Lone Oak Road. City Councilmember Blomquist stated that she was not in agreement with the single family properties that are currently located at the northwest corner of Lexington and Lone Oak being comp guided as neighborhood business. There was a general City Council consensus for the APC's recommendation for the business park and neighborhood business uses as presented. Page 2/Eagan Special City Council Meeting Minutes January 20, 1998 OOC'1.5 Associate Planner Dudziak presented detailed area #3, which is in the central area. She stated that the Advisory Planning Commission is recommending that the City retain industrial guiding on Parcels #7 and 8 and reguide Parcel #11 to business park. She further stated that their recommendation also includes guiding Parcels #1-6 for either business park or commercial uses, depending on market forces. City Council members expressed concerns about Parcel #11; however, agreed that it should remain business park as recommended by the Planning Commission. There was agreement by the City Council that Parcels #1-6 should be redesignated to business park, but consider commercial if a proposal is presented. City Councilmember Blomquist stated that she would not agree to a strip mall if that is presented as the commercial use. Associate Planner Dudziak presented detailed area #4, which is the southeast industrial area, stating that the APC recommendation is to retain industrial guiding for Parcels #3-11 and for Parcels #1 and 2, retain industrial guiding, however consider Mure reguiding to allow a 0-1 use. After a discussion of the parcels and recommendations by the Advisory Planning Commission, it was the general consensus of the City Council that industrial would be preferred for all 11 parcels, however redesignation of Parcels #1 and 2 to 0-1 would be given consideration on a case-by-case basis. Planner Farnham explained that all the changes that were given consideration by the Advisory Planning Commission are changes to the comprehensive guide plan and are not recommended for rezoning at this time. City Administrator Hedges stated that the Advisory Planning Commission also recommended that the City contact each of the property owners regarding the potential land use changes. He reviewed three options for approaching the property owners. City Planner Farnham recommended that Option #1, whereby meetings would be held with property owners within each planning district to discuss the potential changes, be used as the methodology for the meetings. City Councilmembers concurred, stating that these areas would be analyzed individually to determine if any land use changes are warranted and further that any changes identified as part of the trucking study could be discussed in conjunction with those meetings. Mayor Egan thanked the staff and APC for their workshops and recommendations relating to the four areas identified in the trucking study. He stated that no final decisions would be made until after the meetings are held with the property owners. SITE PLAN UPDATE/DELTA DEVELOPMENT City Administrator Hedges stated that direction was given to Delta Development Inc. at the October 21, 1997 City Council meeting to present an application that proposes development adjacent to Beau d'Rue that includes all the parcels resulting in the redevelopment of the entire site. He further stated that Mr. Parranto has indicated, on behalf of Delta Development, that in order to redevelop the entire parcel, public assistance through the use of tax increment financing, will be necessary to offset the cost of acquisition and demolition of buildings on the site. Mr. Parranto presented a total layout for the Delta Development townhome proposal, showing which parcels would require assistance by the City for acq uisition. City Council member Awada asked how many units are proposed per acre with this development proposal. Mr. Parranto stated that the project consists of 25 acres, 202 units, which is a breakdown of 8.4 units per acre. City Councilmember Awada further asked if tax increment financing is necessary. Mr. Parranto stated that in order to remove existing buildings, the cost of demolition and acquisition of certain properties that are not considered willing sellers, public assistance will be necessary. City Councilmember Masin stated that considering this proposal is premature and should wait to see how the development fits into the findings of the Greater Cedarvale area task force. City Councilmember Awada asked if tax increment financing is feasible for this proposed project. City Administrator Hedges Page 3/Eagan Special City Council Meeting Minutes January 20, 1998 00016 stated that the staff, along with the Dakota County HRA, have been preparing a feasibility study to address the possibility of using tax increment financing for the Greater Cedarvale area. Assistant to the City Administrator Hohenstein stated that an assessment of all the parcels located in the Cedarvale area with the exception of two parcels do meet the test for tax increment financing. He further stated that a question for consideration by the City Council is whether the entire Cedarvale area should be considered for redevelopment and use of tax increment financing with or without the residential proposal. After further discussion, it was agreed by a majority of the City Council that the developer should be allowed to proceed with an application for residential development on the south side of Beau d'Rue, stating that this tract of land is a transition from residential housing to the commercial development. City Council member Masin objected, stating that no direction should be given until the Cedarvale task force completes their analysis. In summary, Mayor Egan stated that direction is given to staff to proceed with the tax increment financing district analysis for the Delta proposal. City Councilmember Awada stated that it will be necessary to calculate the numbers and report back before finalizing the feasibility for the use of TIF. Assistant to the City Administrator Hohenstein stated that the analysis will determine whether TIF can generate enough tax dollars to make the project work. Direction was given to the City Administrator to write a letter to Delta Development indicating that the City of Eagan is giving consideration to tax increment financing that would be considered to facilitate redevelopment if an application is presented for the 25 acre proposal. Mr. Parranto thanked the City Council for their direction. Mayor Egan stated that there will be public hearings before the Planning Commission and City Council to further consider the development proposal as presented. Mayor Egan adjourned the special work session to executive session. EXECUTIVE SESSION There was an executive session held at 6:25 p.m. to consider labor negotiations relative to collective bargaining. The executive session ended at 6:30 p.m. ADJOURNMENT The meeting was adjourned at 6:30 p.m. January 20, 1998 Date ~~ . City Clerk TLH MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota rA~ :PK. 0001~7 January 20, 1998 A special meeting of the Eagan City Council was held on Tuesday, January 20, 1998 at 5:00 p.m. in the Eagan Municipal Center Community Room. Present were Mayor Egan and City Councilmembers Awada, Blomquist, Masin and Wachter. Also present were Planner Farnham, Associate Planner Dudziak, Senior Planner Ridley, Assistant to the City Administrator Hohenstein and City Administrator Hedges. TRUCKING STUDY City Administrator Hedges stated that the Advisory Planning Commission, at their November/December workshops, reviewed existing and potential land uses for the four areas identified in the trucking study for further analysis. He stated that the staff is requesting direction on the APC recommendations/findings for land uses in each of the four study uses and direction as to the preferred method for approaching the property owners to discuss potential land use changes. Senior Planner Ridley stated that the four areas are identified as: 1) inappropriate for trucking uses due to size, 2) access issues, 3) presence of significant natural features and 4) proximity to residential uses or visual corridors. Senior Planner Ridley stated that these areas were reviewed in greater detail by the APC in workshop meetings to examine existing uses and discuss potential alternative uses that may require land use and/or zoning changes. Planner Farnham elaborated on the overall general findings presented by the APC, stating that parcels within this study area are small in size making it difficult to develop without lot consolidations. She further stated that access limitations affect some of the properties since they front on state or county roadways and require certain access spacing guidelines. Planner Farnham further stated that the APC also raised concerns about reguiding many of the properties from industrial to business park for the purpose of controlling trucking and outside storage. She further commented that it was generally agreed that existing uses should be allowed to remain if the existing use is viable and would likely remain for the foreseeable future. Planner Farnham introduced the first study area, which is identified as the Burr Oaks area. She reviewed the parcels that the APC thought should be retained as industrial, those parcels to be reguided to business park and stated that Parcels #18-27 and #29-39 could be either business park or industrial. City Councilmember Wachter was in agreement with the recommendation of the APC that those parcels south of Yankee Doodle Road and east of 149 be reguided from industrial to business park. City Council members agreed and concluded that those areas should be business park and further that Parcels #18-27 and #29-39 should be guided as business park, recognizing that the area is a gateway to the central area. Planner Farnham presented Area #2, referred to as the McKee area, stating that the APC is recommending that the parcels (#1-6) north of Knox Lumber would be changed to business park, while the parcels (#9-12) south of Knox would be changed to neighborhood business. Mayor Egan questioned why the land area north of Knox is not designated industrial. City Planner Farnham stated that it was the recommendation of the Advisory Planning Commission that since these parcels are directly adjacent to the McKee residential, business park would be more conducive, since there is no outside storage or trucking allowed in the business park zoning district. City Council member Awada agreed with the proposed uses, stating that neighborhood business is a good designation for the northwest corner of Lexington and Lone Oak Road. City Councilmember Blomquist stated that she was not in agreement with the single family properties that are currently located at the northwest corner of Lexington and Lone Oak being comp guided as neighborhood business. There was a general City Council consensus for the APC's recommendation for the.business park and neighborhood business uses as presented. ,(J~",iL lJlC 00018 Page 2/Eagan Special City Council Meeting Minutes January 20, 1998 Associate Planner Dudziak presented detailed area #3, which is in the central area. She stated that the Advisory Planning Commission is recommending that the City retain industrial guiding on Parcels #7 and 8 and reguide Parcel #11 to business park. She further stated that their recommendation also includes guiding Parcels #1-6 for either business park or commercial uses, depending on market forces. City Council members expressed concerns about Parcel #11; however, agreed that it should remain business park as recommended by the Planning Commission. There was agreement by the City Council that Parcels #1-6 should be redesignated to business park, but consider commercial if a proposal is presented. City Councilmember Blomquist stated that she would not agree to a strip mall if that is presented as the commercial use. Associate Planner Dudziak presented detailed area #4, which is the southeast industrial area, stating that the APC recommendation is to retain industrial guiding for Parcels #3-11 and for Parcels #1 and 2, retain industrial guiding, however consider future reguiding to allow a D-I use. After a discussion of the parcels and recommendations by the Advisory Planning Commission, it was the general consensus of the City Council that industrial would be preferred for all 11 parcels, however redesignation of Parcels #1 and 2 to D-I would be given consideration on a case-by-case basis. Planner Farnham explained that all the changes that were given consideration by the Advisory Planning Commission are changes to the comprehensive guide plan and are not recommended for rezoning at this time. City Administrator Hedges stated that the Advisory Planning Commission also recommended that the City contact each of the property owners regarding the potential land use changes. He reviewed three options for approaching the property owners. City Planner Farnham recommended that Option #1, whereby meetings would be held with property owners within each planning district to discuss the potential changes, be used as the methodology for the meetings. City Councilmembers concurred, stating that these areas would be analyzed individually to determine if any land use changes are warranted and further that any changes identified as part of the trucking study could be discussed in conjunction with those meetings. Mayor Egan thanked the staff and APC for their workshops and recommendations relating to the four areas identified in the trucking study. He stated that no final decisions would be made until after the meetings are held with the property owners. SITE PLAN UPDATE/DELTA DEVELOPMENT City Administrator Hedges stated that direction was given to Delta Development Inc. at the October 21, 1997 City Council meeting to present an application that proposes development adjacent to Beau d'Rue that includes all the parcels resulting in the redevelopment of the entire site. He further stated that Mr. Parranto has indicated, on behalf of Delta Development, that in order to redevelop the entire parcel, public assistance through the use of tax increment financing, will be necessary to offset the cost of acquisition and demolition of buildings on the site. Mr. Parranto presented a total layout for the Delta Development townhome proposal, showing which parcels would require assistance by the City for acquisition. City Council member Awada asked how many units are proposed per acre with this development proposal. Mr. Parranto stated that the project consists of 25 acres, 202 units, which is a breakdown of 8.4 units per acre. City Councilmember Awada further asked if tax increment financing is necessary. Mr. Parranto stated that in order to remove existing buildings, the cost of demolition and acquisition of certain properties that are not considered willing sellers, public assistance will be necessary. City Councilmember Masin stated that considering this proposal is premature and should wait to see how the development fits into the findings of the Greater Cedarvale area task force. City Council member Awada asked if tax increment financing is feasible for this proposed project. City Administrator Hedges Page 3/Eagan Special City Council Meeting Minutes January 20, 1998 ~ OIL. OeGi9 stated that the staff, along with the Dakota County HRA, have been preparing a feasibility study to address the possibility of using tax increment financing for the Greater Cedarvale area. Assistant to the City Administrator Hohenstein stated that an assessment of all the parcels located in the Cedarvale area with the exception of two parcels do meet the test for tax increment financing. He further stated that a question for consideration by the City Council is whether the entire Cedarvale area should be considered for redevelopment and use of tax increment financing with or without the residential proposal. After further discussion, it was agreed by a majority of the City Council that the developer should be allowed to proceed with an application for residential development on the south side of Beau d'Rue, stating that this tract of land is a transition from residential housing to the commercial development. City Councilmember Masin objected, stating that no direction should be given until the Cedarvale task force completes their analysis. In summary, Mayor Egan stated that direction is given to staff to proceed with the tax increment financing district analysis for the Delta proposal. City Council member Awada stated that it will be necessary to calculate the numbers and report back before finalizing the feasibility for the use of TIF. Assistant to the City Administrator Hohenstein stated that the analysis will determine whether TIF can generate enough tax dollars to make the project work. Direction was given to the City Administrator to write a letter to Delta Development indicating that the City of Eagan is giving consideration to tax increment financing that would be considered to facilitate redevelopment if an application is presented for the 25 acre proposal. Mr. Parranto thanked the City Council for their direction. Mayor Egan stated that there will be public hearings before the Planning Commission and City Council to further consider the development proposal as presented. Mayor Egan adjourned the special work session to executive session. EXECUTIVE SESSION There was an executive session held at 6:25 p.m. to consider labor negotiations relative to collective bargaining. The executive session ended at 6:30 p.m. ADJOURNMENT The meeting was adjourned at 6:30 p.m. January 20, 1998 Date ~ TLH