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05/19/1997 - City Council Special 0('166 MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL Eagan, Minnesota May 19, 1997 A special meeting of the Eagan City Council was held on Monday, May 19, 1997, at 5:00 p.m. at the Eagan Municipal Center building. Present were Acting Mayor Masin and City Councilmembers Awada, Blomquist and Wachter. Mayor Egan arrived at approximately 5:30 p.m. Also present were Director of Finance VanOverbeke, Senior Planner Freese, Senior Planner Ridley, Director of Public Works Colbert, Assistant to the City Administrator Hohenstein and City Administrator Hedges. SENIOR HOUSING PROJECT FINANCING ALTERNATIVES City Administrator Hedges stated that City staff and the HRA have been proceeding with City Council's objective to consider a senior housing project at the Town Centre site. He stated that an informational meeting with the neighborhood was held on April 30. Staff of both the HRA and the City, along with guidance from Springsted, have been analyzing the overall project cost and project time scheduled. He further stated that staff is requesting direction on two financing questions which include: 1) whether the project should use stand-alone financing or should be part of the HRA's Common Bond Fund; and 2) should the term of the funding be 20 or 30 years and the relationship of that difference to the up-front cash requirement and/or impact in the rent structure. City Councilmember Awada stated that in her discussions with the Director of Finance, she felt the Common Bond Fund is the best choice for the City. City Councilmembers discussed the two options and agreed that the HRA should fund the project under its Common Bond structure, stating that the sources of support are common among projects funded under the bond fund. Cathy Aho, representing Springsted Inc., discussed the financing alternatives as they related specifically to the rent charged for each unit using 30 year term and 20 year term comparisons. She stated that a shorter term, the 20 year term, increases the annual debt service and requires higher rents. City Councilmembers concurred that the best financing alternative is the 30 year term, which keeps the rents for one-bedroom units at $425 and two-bedroom at $525, which is still higher than Oak Woods of Eagan average rents which are $326 and $475 respectively. City Administrator Hedges stated that regarding the project time schedule, there will be a second neighborhood meeting in June, followed by public hearings, the preliminary subdivision and planned unit development during the months of July and August. Considering no delays to the schedule, construction could begin in September of this year. City Administrator Hedges summarized the direction of the City Council, stating that staff will proceed with preparation of the documents based on the Common Bond Fund structure as the alternative for financing. The term will be a 30-year term as presented. Acting Mayor Masin thanked staff from the HRA and Springsted for their attendance and participation. COMPREHENSIVE GUIDE PLAN UPDATE City Administrator Hedges provided some introductory comments and an overview of the comprehensive guide plan update that was mandated for the seven-county metropolitan area by December 31, 1998. Senior Planner Freese provided a historical summary of the comprehensive guide plan amendments that have occurred since the existing plan was adopted in 1983. She stated that the City has averaged approximately 20 amendments per year to the existing plan. Senior Planner Freese further stated that the City Council will need to adopt a process for reviewing the comprehensive guide plan update, such as utilization of the Advisory Planning Commission or an ad hoc advisory committee which could consist of members of City advisory commissions, the City Council, business community and residents to work on the plan. She further stated that direction will also be necessary on the type of public input the City would like, such as public hearings, informational meetings and whether they should be held at City Hall or off-site locations. City Councilmember Blomquist shared the process that was used when the comprehensive guide plan document was originated from 1979 until its adoption in 1983. She stated that there were off-site meetings which were advantageous to the community and neighborhoods. City Councilmember Masin stated that initiating the comprehensive guide plan update is a good opportunity for the City to incorporate a community-wide visioning process. She further stated that Burnsville initiated the Partners in Progress, which has been an excellent visioning 00167 Page 2/Eagan Special City Council Meeting Minutes May 19, 1997 process for their community. Senior Planner Freese stated that if a visioning process is to be incorporated into the comprehensive guide plan update, it is suggested that an outside facilitator be used for the community-wide visioning. She further asked the City Council, in regard to the comprehensive guide plan update, how involved they want to be in the actual details and process review. She stated that a group such as the Advisory Planning Commission or an ad hoc advisory committee could include a member of the Council to review the details in all aspects of the process on behalf of the Council. City Councilmember Blomquist stated that it is her opinion the Council should be very much involved in all aspects of the comprehensive guide plan update. She stated that this document is extremely important to the community and the Council needs to provide its input throughout the process. Mayor Egan stated that a visioning is subjective and a comprehensive guide plan review is mechanical. He further stated that the two need to be compatible. He further stated that he would like the City to develop some ownership in the future and would see both the visioning and comprehensive guide plan update as important vehicles for the long-range visioning exercise. He further stated that the cultural attitude within the community has changed since 1980, explaining that the community would like to be more involved in the process which supports the need for an ad hoc advisory committee consisting of a broad range of community representation. City Councilmember Blomquist stated that she sees the Advisory Planning Commission as an integral part of the comprehensive guide plan update. Mayor Egan agrees that the APC needs to be involved; however, is it necessary to meet on a frequent basis, which might place a heavy time burden on that Commission. He suggested that a task force be created that would include a member of the City Council, Advisory Planning Commission representation and a broad base community representation. He further stated that all City Councilmembers and advisory commission members could critique the process at any time. City Councilmember Wachter stated that the City is 80% developed; although he believes strongly in the need for the comprehensive guide plan update, he would not like to see the process become more involved than necessary. City Councilmember Blomquist agreed, stating that the City has always been deeply involved in its land use planning and feels there are no significant gaps requiring extensive review by the City Cou.ncil, advisory commissions or community. Mayor Egan further stated that the approach discussed should minimize any need to reinvent the wheel and allow the City an opportunity to allocate its time toward a visioning process. City Councilmember Wachter asked about the timeline for the comprehensive guide plan update. City Administrator Hedges stated that, according to legislation mandating the comp guide plan update, it is to be completed by December 31, 1998. City Council member Blomquist stated that, in her opinion, the City should approach the comprehensive guide plan update as a clean up of any small zoning and comprehensive guide plan issues and concentrate on correcting any zoning of the remaining vacant parcels. She stated that this is the main issue and objective for the community. City Administrator Hedges stated that it is important that the City Council agree on a process for reviewing the comprehensive guide plan, so staff can begin coordinating the effort. He stated that staff can review the comprehensive guide plan and zoning inconsistencies and present those to the City Council at a future work session. City Councilmember Masin agreed with the recommendation and stated that it would be helpful to designate the parcels by areas in the community. City Councilmember Awada stated there must be reasons given for requiring a change in the comprehensive guide plan to conform with future planning. Senior Planner Freese stated that there is a long list of properties and it is important to decide on a uniform approach to review each of the parcels to determine the best long-term development objectives. City Councilmember Awada summarized the City Council's objective for reviewing the comprehensive guide plan update, stating that: 1) this is an opportunity to clean up all land parcels; 2) to address all the systems statements, including transportation, parks and the related; and 3) determine how all undeveloped land should be guided in the future. City Councilmember Awada further stated that the 0-11 study is foremost and should be reviewed with some City Council consideration as soon as possible for the 30 parcels that have been identified by staff. She further asked if there is a feasible timeline for reviewing all the 0-11 parcels to determine their best future land use designation. Senior Planner Freese stated that a joint meeting of the Advisory Planning Commission and City Council could be scheduled for July to review all the 0-11 parcels to determine the most desirable land use designation. OC168 Page 3/Eagan Special City Council Meeting Minutes May 19,1997 Mayor Egan thanked staff for the overview on the comprehensive guide plan update and suggested that more refinement to the process be considered at the Joint APC/City Council workshop meeting to be held in July to review and discuss future land use designation for D-II parcels. He further stated that additional consideration and thought should be given to a visioning process and how that can be incorporated into the comprehensive guide plan update for the City. ADJOURNMENT There being no further business, the meeting was adjourned at 6:25 p.m. May 19, 1997 Date TLH