City Council - 01/16/1979 4
APPROVED MINUTES '
EDEN PRAIRIE CITY COUNCIL
-UESDAY, JANUARY 16, 1979 7: 30 PM, CITY HALL
'UNCIL MEMBERS: Mayor Wolfgang Penzel , Dean Eds trom, Dave
Osterholt, Sidney Pauly and Paul Redpath
COUNCIL STAFF PRESENT: City Manager Roger U1 stad; City Attorney
Roger Pauly; Director of Community Services
Bob Lambert; Planning Director Chris Enger;
City Engineer Carl Jul 1 i e; Finance Director
John Frane; and Joyce Provo, Recording
Secretary
INVOCATION: Councilman Paul Redpath
PLEDGE OF ALLEGIANCE
R&1 CALL: Penzel , Edstrom, Gsterholt and Redpath present; Pauly absent.
I . SWEARING IN CEREMONIES FOR PAUL REDPATli
City Attorney Roger Pauly conducted the swearing in ceremonies for Councilman
Paul Redpath.
,tI . APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS
The following items were added to the agenda under the "New Business" category:
A. Communication from K. E . Schumacher, President. of Eden Land
Corporaticn,regarding the proposed park dedication ordinance
B. Letter and petition received from residents of Topview Acres
Subdivision received January 15, 1979
C. Letter from Eden Prairie High School relative to Eden Prairie-In-Action
MOTION: Redpath moved, seconded by Osterholt, to approve the agenda as amended
and published. Motion carried unanimously.
III. MINUTES
A. Minutes of City Council Meeting held Tuesday, December 19, 1978
Pg. 3, 4th para. , lst line, after "communities" insert "Foundation" .
Pg. 5, lst para. , 5th line, strike "private" and "along the wire", and in
the 6th line, strike "join" and insert "connect"; 7th para. , 2nd line,
strike "nothing" and insert "noting".
Pg. 6, strike the 2nd paragraph in its entirety and insert in lieu thereof
the following language: "Pauly suggested verbage be contained in the
ordinance that land to be -dedicated should be useable land. Pauly also
conunented that when land is being excavated and boulders are found.
►` these boulders would serve as a tremendous thing to play on in tot lots
and might be considered for that use."
Pg. 8, 5th para . , strike " Ring Road" where used and insert "Schooner
Boulevard" . eJ.
MOTION: Osterholt moved, seconded by Edstrom, to approve the minutes of
the December 19, 1978 Council meeting as amended and published. Osterholt,
Penzel and Edstrom voted "aye", Redpath "abstained" . Motion carried.
B. Minutes of City Council Meeting held Tuesday, January 2, 1979 = 1
5
Pg. 3, paragraphs 4 and 5, strike "February I " and insert in lieu thereof
"February 6" .
Pg. 5, add a new 4th paragraph to read: POsterholt stated the Council members
he has worked with feel Mr. Pauly has done an outstanding job and should
be reappointed on the basis of his work."
Pg. 6, 4th para . , 2nd line, strike remainder of the sentence after "insurance"
and insert in lieu thereof "and that he would look into the question of both
insurance and liability generally with the consultation of the City
Attorney." z
Pg. 7, 2nd para. , 4th line, after "for" add "final development of" .
MOTION: Osterholt moved, seconded by Edstrom, to-approve the minutes of
M the January 2, 1979 Council meeting as amended and published. Osterholt, Edstrom
and Penzel voted "aye"; Redpath "abstained". Motion carried unanimously.
IV. CONSENT CALENDAR
Osterholt requested that items VII . C & D also be placed on the Consent Calendar.
Council members concurred.
A. Clerk' s License List
B. Set Public Hearing for Chatham Woods for February 6, 1979
C. Set Public: Hearing for Norseman Industrial Park 3rd Addition for Februalry 6,
1979
D. Set Public Hearing for Lake Heights Addition for February 6, 1979
E. Set Public Hearing for Jerry' s Super Valu for February 6, 1979
F. Authorize bids for 1 dump truck
G. Authorize bids for quick lime for water treatment
H. Accept street and utility improvements in Red Rock Hills 3rd Addition
I . Accept sanitary sewer and watermai n improvements for Hipps Mitchell Heights
3rd Addition
MOTION: Redpath moved, seconded by Osterholt, to approve items IV. A - I and
VII . C & D on the Consent Calendar. Motion carried unanimously.
I IOU I.LJ v 1 44J • )Vt11JtJ(11,' V, 7�
V. PUBLIC HEARINGS
A. Bluff 's West 2nd Addition by Hustad Development Cor oration, Dr. & Mrs . Brandt,
and B. F. I . Request for rezoning from Rural to R1-13.5 on 97 acres (Continued
FubTic Hearing) s
9
City Manager Ulstad explained Staff has visited with the proponents over the
past month and a revised proposal is before the Council .
Dick Putnam, Hustad Development Corporation, spoke to their revised proposal
as outlined in their communication dated January 10, 1979. (Attached as part {
of ini nutes)
Osterholt stated the revised proposal is a vast improvement over whit the Council
reviewed before, and feels it has a lot of merit plus the fact that the
developer is willing to provide the cash park fee in addition to the land.
Osterholt questioned Staff whether any of the proposed changes in Flying Cloud
Airport would interfer with any of the densities in the area . Enger replied
in terms of what zoning may be mandated according to State Law regarding
airports, none of this area falls within a zone which would determine any type
of density. 1
I
Penzel agreed with Osterholt that this is a vastly improved proposal as far as
the relation of the 2nd Addition is concerned with the park. However, he is
concerned about the degree of density proposed for the 3rd and 4th Additions
as he believes the densities should be adjusted down.
Enger asked for a legal opinion as this project started out many months ago
as a straight zoning type of application. Technically it is not .a PUD, and there
are a number of variances that are required. City Attorney Pauly responded
if the proposal does involve the introduction of variances and special
considerations which have been outlined, for the Council to have authority to
grant those it is really through the PUD concept. If we are now going to PUD
concept, then we ought to really go through the hearing process to be sure that
there is not a problem in the future.
Edstrom questioned what will happen to Homeward Hills Road in the southeasterly -
portion of the property up next to the Brandt property. Putnam replied Homeward
Hills 'Road will be vacated - the gas easement and the metro sewer interceptor
will be retained. The actual road will be vacated and the new street called
Concord, which is in place now, replaces Homeward Hills Road next to Riverview
Road.
Edstrom felt thought should be given to slopes on a few of the lots (1, 2, 19
and 20) to make sure they really are buildable without threat of erosion.
Osterholt questioned if Staff felt the density is so severe that it would really
impair the development to the point where it would be detrimental . Enger replied-
he felt the density is relative. The side yard setback would be 5 and 10 feet,
the smallest lot size somewhere around 9,000 or 10,000 square feet. Some
communities have 10,000 square feet standard lot sizes with 5 and 10 feet set-
backs . Functionally the development could work very well . There are a number of
places in Eden Prairie where those type of lot sizes exist; however, he could not
think of a place where so many exist in one area - although this is a large area .
A. Bluff's West 2nd Addition (continued)
e
Osterholt asked if Staff felt it is reasonable to include the 15 acres with
the 108 acres to get density. Enger responded in the affirmative.
MOTION: Redpath moved, seconded by Osterholt, to close the Public Hearing on
Bluff's West 2nd Addition. Motion carried unanimously.
MOTION: Osterholt moved, seconded by Redpath, to adopt Resolution No. 78-154,
approving the preliminary plat for Bluff's !-lest 2nd Addition. Motion carried
unanimously.
Penzel noted that if variances are to be granted they will have to come through
the Board of Appeals & Adjustments and if they are not resolved there, they
wi 11 have to be resolved by the Council .
MOTION: Osterholt moved, seconded by Redpath, to approve the 1st Reading of
Ordinance No 78-41 , approving the request for rezoning from Rural to R1-13. 5
on 108 acres for Bluff's West 2nd Addition by Hustad Development Corporation,
Dr. & Mrs . Brandt, and B,.F. I . Motion carried unanimously.
MOTION: Osterholt moved, seconded by Edstrom, to direct Staff to draft a
developers agreement including the recommendations of the Staff Report dated
717178 relative to the scenic easement and public dedication of land, and that
this action is not to prejudice future decisions for rezoning on adjoining
properties that may come before this body or any future bodies. Further that
the proposal be referred to the Parks, Recreation & Natural Resources Commission
for comment on the park issue before the 2nd Reading of Ordinance No. 78-41 .
Motion carried unanimously.
`^- B. Community Development Block Grant. Joint application for approximately
$65,000 of Federal funds to be used for eligible community projects .
City Planner Enger spoke to his memo dated January 12, 1979 , explaining
that page two of the memo was inadvertently missing from the packet.
MOTION: Osterholt moved, seconded by Edstrom, to continue this item after
item VII . E, allowing Mr. Enger time to distribute page 2 of his memo to
Council members . Motion carried unanimously. (See page 6)
VI . REPORTS OF ADVISORY COMMISSIONS
No reports.
VII . ORDINANCES & RESOLUTIONS
A. 2nd Reading of Ordinance No. 78-56, rezoninq 11 .7 acres from Rural to
Commercial-Regional Service for Eden Prairie Neighborhood Center, BarMil
Search Corporation, and , TeveTbpers ayreement
Larry Mikan, Vice-President BarMil Search Corporation, requested Council 's
consideration of a change in the developers agreement from 6.8 parking
spaces per thousand square feet to 5. 5 parking spaces per thousand square
feet. City Planner Enger added BarMil would like to provide parking for
5. 5 parking spaces hard surfaced at this time, the rest would be sodded.
If it came about they were short of parking they would then have the area with
proper setbacks to construct additional hard surfaced parking.
A. 2nd Reading of Ordinance No. 78-56, Eden Prairie Neighborhood Center,
E3arlli 1 Search Corporation (continued
Council members concurred with the request of the proponent as stated.
Other amendments were made to the developer's agreement: Page 2, staff to
rephrase item S. a. , and after 8. c. add an item which covers Schooner
Boulevard. Pg. 3, item 11 , eliminate parentheses around "Registrar of Titles" .
Page 5, last para. , add Jr. to George L. Mikan .
MOTION: Osterholt moved, seconded by Edstrom, to give a 2nd Reading to
Ordinance No. 78-56, rezoning 11 .7 acres from Rural to Commercial-Regional
Service for Eden Prairie Neighborhood Center, BarMil Search Corporation. Motion
carried unanimously.
MOTION: Redpath moved, seconded by Osterholt, to approve the developer' s
agreement for Eden Prairie Neighborhood Center, BarMil Search Corporation, as
amended. Motion carried unanimously.
B. Resolution No. 79-14, granting final approval for Municipal Industrial a '
Development Bonds for C.P.T. Corporation
City Attorney Pauly spoke to changes which have been made in Resolution
No. 79-14.
y
Edstrom requested that`%Loan Agreemene on page I of the resolution be defined.
MOTION: Osterholt moved, seconded by Redpath, to adopt Resolution No. 79-14 ,
granting final approval for Municipal Industrial Development Bonds for C.P.T.
Corporation as amended. Motion carried unanimously.
C. Resolution No. 79-15, 9ranti_ng final approval for Municipal Industrial
Development Bonds for Super Val u
Approved as part of Consent Calendar (item IV) .
D. Resolution No 79-16, granting final approval for Municipal Industrial
Development Bonds for Kensington Development
Approved as part of Consent Calendar (item IV) .
E. Resolution No. 79-19, granting preliminary approval for Municipal Industrial
Development Bonds for Eden Hills Company
Howard Rekstad, a partner in Eden Hills Company, spoke to their request
for approval of MIDB's in the amount of $1 ,600,000,00, and answered questions
of Council members . The site, Mr. Rekstad explained, they are asking for
MIDB approval is located on 7 acres at the south end of Fuller Road to develop
a quality office warehouse building of just a little over 86,000 square feet.
Osterholt expressed concern about the traffic in the area under consideration.
Also it is a I-General situation which would allow outside storage, outside
trucks, etc., and he does not feel it is desirable adjacent to a residential -
area.
City Engineer Jullie explained Stewart Sandwich Company' has acquired property
over to County Road 4 and City Staff has had meetings with them and also with.
the Department of Transportation staff. Jullie believes a corridor arrangement
4
E . Resolution No. 79-19 (continued) a
has been worked out where Stewart Sandwich would reserve a street right-of-way
for construction of a frontage road between Fuller Road and County Road 4. t
Enger further noted Stewart Sandwich has had -several meetings with property s
owners in the area in an attempt to resolve the traffic situation. Their s
intent is to approach the City with a petition toward an improvement out i
toward County Road 4, not dedicating the right-of-way but providing the area
for the right-of-way. l
Edstrom stated insofar as Eden Prairie 's reputation is concerned we have less
to be concerned about in the case of a private offering than a public offering.
However, it is nevertheless important to have the financial background.
t is developed sh uld be circulated
Osterhol asked that financial information thato �
and made part of the record.
MOTION: Osterholt moved, seconded by Edstrom, to table this matter until after
discussion on item VIII .• F. 1 . Motion carried unanimously.
F. Resolution No. 79-20, c:rantinq preliminary approval for ttunicipal Industrial
Development Bonds for Menard's, Inc.
MOTION: Osterholt moved, seconded by Edstrom, to table this matter until after
discussion on item VIII . F. 1. Motion carried unanimously.
V. B. Community Development Block Grant (Continued from Page 4) _
City Planner Enger explained that page 2 of his memo has now treen distributed
to Council members for review, and spoke to same.
Enger suggested Council adopt: a) a general needs statement; b) housing
assistance plan; c ) three year plan and d) a one year action plan as outlined
in memo dated January 12, 1979.
Osterholt inquired if some of the funds could be used for the other camp
site that has been offered the City (Camp Frontier) under item 3. e.3 and
developed into that type of a facility. He could see where a handicapped park
site in the community would be of benefit to the entire metropolitan area if it
is done right. Enger replied he hadn' t thought of that possibility, and will
look into that opportunity. ' S.
Osterholt requested that housing for young people be added as 3 f) under the
three year plan, and that it should be indicated that the letter designations
do not necessarily mean priorities .
MOTION: Redpath moved, seconded by Osterholt, to close the Public Hearing
and approve the recommendations as outlined by Staff in memo dated January 12,
1979. Motion carried unanimously.
Council members urged Mayor Penzel to attend the meeting on January 30th
on the Council 's behalf. Penzel agreed to attend and asked Enger to advise
him of the time and location.
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'3
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Itern VIII . F. 1 was taken up at this time at the request of Council members .
VIII .F.1 . Municipal Industrial Development Bond Guidelines (Resolution No. 78-215)
Frane stated per the Counci I 's direction, the Eden Prairie Development Conini ss i on
' reviewed the City 's proposed -guidelines for MIDB 's and voted to recomilend
approval of the guidelines to the City Council .
Edstrom added the Development Commission reviewed the guidelines in December
and January and some questions were raised along the lines of the distinction
between the private placement purchaser and a public offering. In addition
a note was made of the fact that some of the requirements in the memo to the
applicants anticipated action which applicants would not necessarily be in a
position to take prior to preliminary resolution. The Development. Commission
understood from Mr. Frane, notwithstanding the lack of a few items on the
application form, that after the adoption of preliminary resolution that
material would be forthcoming and would be in the hands of the City and before
the Council prior to final approval of the bonds .
Osterholt suggested a change on page 1 , first item 2, that an application fee
be set forth for this type of matter, and that fee be based on a scale depending
on the amount of bonds and if our cost did not reach the deposited amount, the
balance could be refundable.
Osterholt questioned item l on page 2 of the application. Frane explained
the previous resolution spoke to two times the principle and interest of the last
two years and a demonstrated record of earnings . Osterholt asked that language
to that effect be added to the MIDB guidelines.
` Osterholt stated he would like to see a recommendation made by Staff as to how
4_ we can judge where the financing is not done by the public bond issue, for
example, if a mortgage is to- be placed with a private lender, that the name of
that lender be part of the application.
Randy Nelson, Juran & Moody, replied generally they would have no problem in
putting that in an application form, with the exception that a number of
institutions refuse to review a project other than on a preliminary basis with-
out getti ng a resol ution passed by the Ci ty Counci 1 .
Osterholt questioned if there are cities that do require a commitment from an
institution prior to preliminary approval . Nelson responded there are cities
which have the same guidelines as the City of Eden Prairie requiring a letter
from a company like theirs or from an institution. Generally the cities accept
their word that they feel the bonds can be marketed or the mortgage as satisfac-
tory in place of an institutional commitment. Osterholt stated he would like
to see something more definitive in the MIDB documents .
Osterholt stated where there are personal financial statements given with the
application, he believes the City should have some assurances that those
principals involved are in some way tied to the project so there is a financial
obligation there. He wants to make sure the people who come before the City
do have the commitments that are represented to the Council to whatever extent
they are.
Edstrorn and Osterholt commented on the point about identifying the potential
institutional investor and asked if the 1)roblem could be solved by requesting a
letter from the institution expressing a favorable interest in the offering.
Nelson replied in the affirmative.
.,ounc i l Fli nutes
VI II . F .1 . Municipal Industrial Development Bond Guidelines (continued) '
Edstrom expressed concern on the question of the two years meeting the
earnings test3as there may be some small corporations that are in the
formative years that may not meet the earnings tests, but nevertheless good
financial analysis indicates there is a good future for that corporation and
they may have done extremely well for the past year. Thus he would be inclined
to go with the suggestion in the guidelines, recognizing if that is not
satisfactory the minimum guidelines are not binding on the City and we
could refuse to issue the bonds. Edstrom stated he would be inclined to
keep the threshold requirement low, but view critically each application
that comes to us without excluding a company which really shows a promise
for both themselves and for the community:
City Attorney Pauly noted the application does not limit in any way or
contemplate to limit the projects for which industrial revenue bonds would be
available in this City. Those limitations would only be provided by State
Law which really permits any type of project which is revenue producing.
Osterhol t felt one of the questions in the application should be what the
record has been of the applicants, what other projects have they participated
in (either proposed issues where they may have been turned down and also those
that have been issued) , and what is the status of those bonds and present
projects? The people before us tonight have had some very good success in
that field and that is to their credit.
Osterholt requested Staff come back with a recommendation on what the
financial projection the City has so we know the principals involved really
do have some financial commitment, other than a net worth statement which may not
have any definite worth, and also some idea as to how those assets are
committed to the projects.
MOTION: Redpath moved, seconded by Edstrom, to adopt Resolution No . 78-215,
approving the Municipal Industrial Development Bond Guidelines as amended.
Motion carried unanimously.
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VII . ORDIivANCES & RESOLUTIONS
E . Resolution No. 79-19, granting preliminary approval for Municipal Industrial
Development Bonds for Eden Hills Company (Continued from Page 5
Penzel asked Mr. Rekstad if they were willing and able to meet the requirements
of the guidelines as previously discussed. Mr. Rekstad replied in the
affirmative.
Osterholt expressed concern over the traffic that would be anticipated.
Mr. Rekstad explained they have had meetings with Stewart. Sandwich and have
sent the President of Stewart Sandwich a resolution which has been signed,whereby .
they are coimniting themselves to their proportionate share of the cost as laid
out by the City for the inclusion and development of a frontage road which
would go along Highway 5 and tie into County Road 4.
Osterholt questioned if it becomes necessary for the City to acquire the rinht-
(� of-way, would the City assess the benefitted properties for those costs! i
Enger replied in the affirmative explaining the City asked the property owners
to petition the City for a feasibility study and their understanding is that
the share the State would not pick up would be 100N assessed back to the
benefi tted property owners.
.. v.• .. 1 1 I 11 L....J � .V .J ♦ ,VtJ 11 t (11� u, � �� ./
E. Resolution No. 79-19, granting preliminary a �roval for Municipal Industrial
Development Bonds for Eden Hills Company' �ntinued
MOTION: Redpath moved, seconded by Osterholt, to adopt Resolution No . 79-19,
granting preliminary approval for Municipal Industrial Development Bonds for
Eden Hills Company. Motion carried unanimously.
F6 Resolution No. 79-20, granting preliminary approval for Municipal Industrial
Development Bonds for Menard' s, Inc.
Finance Director Frane explained Menard 's is requesting the Council to
consider approval of MIDB 's for the construction of their homecare center
building, and there is some urgency on their part because of a closing which
is scheduled for next week . Menard's were unable to submit the entire
documentation that we required in our previous guidelines . However, the
Council could adopt the resolution contingent upon receipt of the additional
required documents.
MOTION: Osterholt moved, seconded by Edstrom, to adopt Resolution No. 79-20,
granting preliminary approval for Municipal Industrial Development Bonds for
Menard's, Inc. , contingent upon the receipt of additional required documents.
Motion carried unanimously.
Mrs. Grieco, 12781 Vina Lane, commented if Menard's does not comply with things
other people do, maybe the Council should take a second look at them. Penzel
replied the resolution does include a provision that all information shall be
provided prior to any further action regarding the bonding. Also that Staff
has been in contact with Menard's regarding the other concerns that were
�. expressed by the neighborhood and Menard's has indicated informally that they
are very much interested in working those problems out and they concur with
desires for screening, etc.
VIII . REPORTS OF OFFICERS, BOARDS & COMMISSIONS
A. Reports of Council Members
1. Appointment of members to the Citizens Advisory Commission on Cable
TV
Penzel referred to communication from Rita Conrad expressing an interest
to serve on the Citizens Advisory Commission on Cable TV and placed her
name into nomination.
City Manager U1 s tad stated he received a call from John Lovas,who is empi oyed by
the Srhool District,requesting consideration by the Council for appointment
to the Commission.
MOTION: Osterholt moved, seconded by Redpath, to appoint Rita Conrad and
John Lovas to serve on the Citizens Advisory Commission on Cable TV.
Motion carried unanimously.
Other appointments to be made to the Citizens Advisory Commission on Cable TV
at the February 20,1979 Council meeting.
Osterholt suggested Libby Otto at the Library be contacted to see if she
has any recommendations as to appointments that the Council could consider.
2. Appointment of l Representative to the WAFTA Board for a• l .year term
Penzel recommended the appointment of Robert Pemberton as the representative
to the WAFTA Board.
MOTION: Edstrom moved, seconded by Osterholt, to appoint Robert Pemberton
as the representative to the WAFTA Board for a 1 year term. Motion carried
unanimously.
3. Set date for Council. to meet with the Parks, Recreation & Natural
Resources Commission
MOTION: Edstrom moved, seconded by Osterholt, to set Thursday, February 8,
1979, 7: 30 PM, for the joint meeting of the City Council and the Parks,
Recreation & Natural Resources Commission. Motion carried unanimously.
B. Report of City Manager
1. Request for change order regarding developers agreement for Creekside
Heights, item #3
hick Putnam, Hustad Development Corporation, spoke to their request
as outlined in communication dated January 11 , 1979 (attached as part
of minutes) . Putnam explained Mr. Schrader of Hart Homes has contacted
Mr. Zachman and asked that he take over the remaining 20 lots in the
subdivision and build it out as originally intended. The problem is
that in the developer's agreement it states the limit of $40,030 - $50,000
homes. They would have two $40,000 homes in the subdivision rather than
6, and that the price on Mr. Zachman's homes, of which there would be
three basis models, would be $54,900 including mortgage points and sales
commission. {
Mr. Zachman, Zachman Homes , Inc. , commented the $50,000 price was the 1978
price and with the inflation on homes at about 15%, actually the $54,900
he is proposing is really less than $50,000 with the 1979 price. The
problem comes with the 4 remaining houses at $40,000 that Mr. Schrader
felt he could build without basements . The change requested in the
developer's agreement is that there would be a two rather than six $40,000
homes in the project. The three types of homes he is planning on building
are: 1) split entry, 2) rambler, and 3) split level . These houses would
be set up to have an attached double car garage, but would not be included 3
in the $54,900 price.
Osterholt stated we have people come in and ask for rezoning and they sign
developer's agreements and then we find we are dealing with somebody else.
Suggested the proponents go back and replat the property into larger lots. !
Osterholt feels the City has kept its part of the agreement and now finds
the developer comes in and says for these reasons they can' t do it. He
doesn't really think the developer thought they could live up to the agree-
ment as they were more concerned about getting a display home up in time
for competition.
Redpath agreed the developer failed on their project on what they were
attempting to do, but still the area could be bailed out with this proposal-
and still have the same idea. The premise was right, but unfortunately
it didn' t work. You still are going to have a low/moderate cost house
with Mr. Zachman's proposal .
1. Request for change order regarding developer 's agreementfor Creekside
Heights, item #3 continued
Osterholt commented the problem with bailing the developer out is the City
is going to see more and more projects of this type with a scaled down
lot and they are going to come in and plea they can build a house for X
number of dollars because that is really what is needed in Eden Prairie.
When the developers come in and make those commitments and then
don 't deliver, he does not feel the City should go along with the change
and bail them out. Ne does not feel the proponents have kept faith with
the City.
Putnam explained the project is a failure for Mr. Schrader in the sense
that what he hoped to do was to produce a product and have it be something
that could be sold quickly. He was talking about being done with the
subdivision by the first of the year, that would be all 27 homes completed.
A number of reasons entered into why it didn ' t happen. It wasn 't a
function of not trying as proven by the fact he has 6 houses, one of which
was marketed and sold for $40,000 and a commitment to do another. Mr.
Schrader started out with the whole premise not to go through FHA. He
had private conventional financing lined up, however, needless to say when the
mortgage rates went up, the financing dried up, and he had to try to get
` FHA approval which has been tentatively approved. Putnam stated when you
use that type of financing the points you have to pay have to be added
on. What happened was he found his costs that he started out with, because
he couldn't sell the subdivision out by the first of the year, went into
1979 costs and frankly he had underestimated what the basement was going
to save and how desirable it was. At this point in time Hus tad is trying to
finish the project off because they did sign on the developer's agreement,
and will follow what was intended - to build the lowest price house that they
can possibly put on the lot that is going to be a quality project.
Osterholt stated in his judgement this project would never have been
approved on any other basis then the proposal was to have low income housing
of this type as it was represented to the Council , and now Mr. Schrader says
he can 't do it. The concern is an agreement was made and it is not being
lived up to. If it is going to be changed, they proponents should go back
and replat it. The other thing involved is the developer has land costs
there, and maybe Hustad should assume part of that and not expect the City
to. When a developer comes up with a project that is unworkable because of
bad judgement, the City should not have to bail the developer out.
Penzel noted the developer's agreement was worked out in cooperation between
the developers and the City and everyone had the opportunity to put in
whatever they wished to and what everybody put in was approved.
MOTION: Osterholt moved, seconded by Edstrom, to refer the developer's
agreement on Creekside Heights to the City Attorney for review as to what
the documents entail . Motion carried unanimously.
C. p
Re ort of City Attorney
City Attorney Pauly updated the Council on the Ban Con/Ridgewood Condominiums
lawsuit.
40un . ► I i ,lnutes - lc +ues _ ,uanuary io, iv/v
D. RC-'port of Director of Community Services
1. Mitchell Lake Park Option
Director of Community Services Lambert explained he received the new proposed
agreement late this afternoon from Mr. Moriarity, legal counsel for
the Millers, and has reviewed the agreement along with City Attorney
Pauly. Lambert pointed out what the payments would be under the first option
and compared them to the payments proposed in the revised option agreement
figuring interest, etc. The first option provided we would pay
$528,250.00, and the new proposal is $529,000.00 for the Miller property.
The City would have to come up with $220,170.00, of which $100,000 would be
reimbursed through the grant. $55,00b of that would be option eioney which
would go toward the purchase of the last piece of property. $9',973.00
is part of the agreement we originally made in paying the 1977-1978 taxes .
$155,200.00 is the purchase of Parcel 1 of which the $100,000.00 would be
reimbursed. q
I
Penzel questioned if the purchase is feasible? Lambert replied through.
grants it is feasible. but emphasized although there is a very good chance
for receiving grants on the lakeshore sites, there is no guarantee.
MOTION: Osterholt moved, seconded by Redpath, to approve the purchase
agreement and the option payments for the Miller property as outlined in
the agreement. Roll Call Vote: Osterholt, Redpath, Edstrom and Penzel
voted "aye" . Motion carried unanimously.
Mr. Moriarity explained he has not had an opportunity to discuss the
revised agreement with the Miller' s, but will be doing so within the next
week or so. He is relatively satisfied the Miller ' s will find it to be
acceptable and assumes they will have no major objections .
2. Topview Park
Penzel explained as a consequence of the Menard's approval , he was asked
to meet with some neighbors in the Topview area who expressed great concern
about their screening on the south side of Valley View Road towards the
Menard 's site. After that initial meeting another meeting was held, which
included City Planner Enger, about how the 9 acre site on the northern
portion of the Menard's property would be desirable for a park site in the
view of the residents. Enger then asked Bob Lambert to look at how suitable
that particular site would be. It was also revealed in the conversation that
property adjoining Gerard Drive was in the process of being considered for
development and therefore might be available for acquisition. Lambert talked
with Mr. Miller, the owner of that property, and there seems to be a
possibility of working out an option agreement for the acquisition of the
southern parcel of the two parcels that are being considered for development.
Lambert has given us a preliminary layout of what might be possible and
in his opinion it seems to be a viable neighborhood park site . Penzel
suggested lambert put this item on the agenda this evening and request Council
approval for an attempt to negotiate an option for that parcel which would
be paid largely out of park fees to be collected from the property to the
_ north and west and Stewart Highlands and Menard's .
Lambert stated the Parks, Recreation A Natural Resources Commission Monday
evening, January 15, reconmended that the Council approve staff to approach
the landowner just to see if he is willing to sell the parkland and what
he feels the property is worth, and also to look at the property to the ,north-
west adjacent to the pond as a potential park site to serve Topview and the
2. To view Park (continued)
proposed developments to the northwest, so we aren' t zeroing ourselves in
on one site.
MOTION: Redpath moved, seconded by Osterholt, to direct Director
of Community Services Lambert and Staff to identify possible sites
in the Topview area for a neighborhood park. Motion carried
unanimously.
MOTION: Osterholt moved, seconded by Edstrom, to continue the Council meeting past the
schduled 11 : 30 PM adjournment hour. Motion carried unanimously.
E. Report of C-ity Engineer
1. Consider bids for sanitary sewer extension for Super Valu headquarters
site, I .C. 51-332 Resolution Nos. 79-17 and 79-18
City Engineer Jullie spoke to Resolution Nos . 79-17 and 79-18, recommending
approval of s ame.
MOTION: Osterholt moved, seconded by Edstrom, to adopt Resolution No.
79-17, awarding the bid to 0 & P Cortracting, Inc. for Improvement
Contract No . 51-332. in the amount of $122,768.12. Roll Call Vote:
Osterholt, Edstrom, Redpath and Penzel voted "aye". Motion carried
unanimously.
MOTION: Osterholt moved, seconded by Edstrom, to adopt Resolution
No. 79-18, authorizing City Engineer Jullie to submit an application
for "Permit for Connection to or Use of Commission Facilities" to
the Metropolitan Waste Control Commission. Motion carried. unanimously.
2. Final Plat approval for Olympic Hills Highland (Resolution No. 79-09)
Penzel referred to questions asked at the January 2nd Council meeting regardin._
additional development by the Olympic Hills Corporation and asked the
proponents to respond to same.
Mike Adams and Don McGlynn, Olympic Hills Corporation, displayed a map
showing the ultimate development proposed for Olympic Hills and answered
questions of Council members .
Osterholt requested the map as shown, together with the color graphic
originally shown to the Council , be placed on file in the City 's
Engineering Deparbnent for future reference.
MOTION: Redpath moved, seconded by Edstrom, to adopt Resolution No. 79-09,
approving the final plat for Olympic Hills Highland. Motion carried
unanimously.
3. Report on meetings with Major Center Area property owners regarding
trans ortati_on improvements
City Manager Ulstad spoke to memo dated 1/11/79.
Osterholt requested City Engineer Jullie develop what the figures viouid
be on items 3 and 4. City Manager Ulstad stated Jullie will forward
these figures to the Council in the "For Your Information Packet
No action necessary,
4. Release of 10% retainage - HNTB
City Engineer Jullie spoke to memo dated 1/10/79 and communication from
HNTB (Howard Needles Tarmnen & Bergendoff) requesting the Council to
authorize release of 10% retainage ($14,752.50) .
Council referred this matter to the City Attorney to review the
documents before the Council authorizes payment of the $14, 752.50.
F. Report of Finance Director
i
1. Municipal Industrial Development Bond Guidelines (Resolution No. 78-215)
At Councils request, 'this item was taken up earlier on the agenda .
(See pages 7 and 8) '
t
2. Report on Municipal Industrial Development Bond financing for single
family dwellings
City Manager Ulstad explained the City has received a number of requests
for this type of financing,
A
Rod Pakonen, Piper, Jaffray & Hopwood, and William Fahey, Ehlers & '
Associates, spoke in detail to their memo dated 12/22/78 and the possibilities
for MIDB financing for single family dwellings . General discussion took ?
place pertaining to same.
MOTION: Edstrom moved, seconded by Osterholt, to refer this matter to the
Planning Commission, Development Commission, and the Human Rights &
Services Commission for review. Motion carried unanimously.
3. Payment of Claims Nos . 2799 - 2959
MOTION: Osterholt moved, seconded by Redpath, to approve Payment of
Claims Nos . 2799 - 2959, excluding Claim No. 2950. Roll Call Vote:
Osterholt, Redpath, Edstrom and Penzel voted "aye" . Motion carried
unanimously.
Osterholt stated he would like to have an inventory of City equipment and
property developed and verified,
fX. NEW BUSINESS
A. Communication from K. E. Schumacher, President of Eden Land Corporation,
regardinq the proposed park dedication ordinance
Council requested the communication from K. E. Schumacher, President of Eden
Land Corporation, be forwarded on to the Parks, Recreation & Natural Resources
Commission for their edification.
B. Letter and petition received from residents of Topview Acres Subdivision received
January 1.5, 1979 and dated January 11 , 1979
City Manager Ulstad spoke to letter from Mr. & Mrs. William M. Verkuilen
rece:.cd January 15, 19179 aioiig witi pet, t:ons iron: residents of TopVle'w
Acres Subdivision. '
C. Letter from Eden Prairie Hitch School relative to Eden Prairie-In-Action
City Manager Ulstad referred to communication regarding Eden Prairie-In-Action,
I IIU\.1.J
C. Letter from Eden Prairie High School relative to Eden Prairie-In-Action
�conti hued
suggesting the City have two booths - one for the Public Safety Department
and Fire Department, and the other for the Parks and Recreation Department.
Council members agreed with Ulstad's suggestion.
Penzel stated he thought it would be a good idea to have a bus tour for
Eden Prairie residents to see what is happening in the community.
X. ADJOURNMENT
MOTION: Redpath moved, seconded by Osterholt,' to adjourn the Council meeting at
12:50 AM. Motion carried unanimously.
I
Mustad
D@"3Kc �
\ 0 00 a 0
January 10, 1979
Eden Prairie City Council
8950 Eden Prairie Road
Eden Prairie, MN. 55343
RE: BLUFFS WEST 2ND ADDITION
Dear Mayor and Members of the City Council , !
We are presenting for your consideration an alternative proposal for
the Bluffs West 2nd Addition. The revised proposal attempts to solve
the major stumbling blocks identified at previous meetings.
The City neighborhood Park question has had two previous plans for
purchase negotiated between Eden Prairie and the owner, Browning Ferris
Industries (BFI ) . The City Council asked our company to attempt to
work out an alternative approach.
The second concern was the type and amount of future development that
is anticipated in the area. We have taken a look at our future plans
and have prepared a concept sketch providing an overview of the Bluffs
West area.
Bluffs West 2nd Proposal
lat o n
The attached Bluffs West 2nd plat proposes 244 lots on 108 acres at f ; n
density of 2.26 dwelling units/acre. The plat is proposed as a De f
continuation of the 1st addition for Orrin Thompson Homes , Inc. The Plann��q ('
bluff lots will be sold to individual buyers for expensive custom homes.
The overall map of the area shows a 31.5 acre neighborhood park site
adjacent to Homeward Hills Road. We propose to purchase that site from
BFI and dedicate 15± acres to the City as part of the platting of
Bluffs West 2nd Addition. The remaining 16.5± acres would be dedicated
with the 3rd Addition later this year.
i�
12750 PIONEER TRAIL, EDEN PRAIRIE, MINNESOTA 55343 (612)941-4383
y
Eden Prairie City Council
January 10, 1979
Page 2
We also propose that the City cash park fee be paid by all phases
of our development in addition to the 31.5 acre Neighborhood Park
dedication.
Our objective is to continue Orrin Thompson's quality single family
development in the Bluffs West neighborhood and to make provision
for the recreational , health and safety needs of the residents. Our
staff will work with the City staff to develop the Homeward Hills
Neighborhood Park during 1979.
We sincerely believe that this Bluf Fs West 2nd Addition proposal is
a better plan since the neighborhood park, tot lot, and scenic
open space areas are provided while cash park fees are generated t0
assist in development of neighborhood parks.
Sincerely,
Richard Putnam
HUSTAD DEVELOPMENT CORPORATION
t�
January 5, 1979
BLUFFS WEST SECOND ADDITION
1. Total Gross Area 122 Acres
Area Excluding 0utlots A, B & C 108 Acres
2. Total Residential Units 244 Units
3. Gross Density
(Excluding Outlots A, B & C) 2.26 Du/Ac
4. Proposed Setbacks.
Front Yards: 30'
Side Yards:
Garage - 5'
1 Sty Hse - 10'
1's Sty Hse - 15'
F BLUFFS WEST THIRD ADDITION
1. Total Gross Area 103.3 Acres
Single Family 37 Acres
Quad Sites: 37.3 Acres
(1st Phase - 26 Ac. )
(2nd Phase 11. 3 Ac. )
Dougles: 29 Acres
(1st Phase - 16. 5 Ac. )
(2nd Phase - 12. 5 Ac. )
2. Total Residential Units 434 Units
Single Family 100 units
Quad Sites:
1st Phase 144 Units
2nd Phase 80 Units
Doubles
1st Phase 60 Units
2nd Phase 50 Units
3. Gross Density
Single Family 2.7 Du/Ac.
Quad Sites:
1st Phase 5.5 Du/Ac.
2nd Phase 7. 1 Du/Ac
4
Bluffs West Third Addition (continued)
Doubles
1st Phase 3.6 Du/Ac.
2nd Phase 4.0 Du/Ac
BLUFFS 14EST FOURTH ADDITION
1. Total Gross Area 28 Acres
Single Family 19 Acres
Apt-Condos 9 Acres
2. Total Residential Units 129 Units
Single Family 39 Units
Apt-Condos 90 Units
3. Gross Density
Single Family 2. 1 Du/Ac.
Apt-Condos 10 Du/Ac.
77
- -
. v
to,EM0
TO: Mayor.and City Council
FROM: Chris Enger, Director of Planning
THROUGH: Roger Ulstad, City Manager
DATE: January 12, 1979
RE: Hustad Development Bluffs ltes t 2nd Addition
City staff has been working with liustads in an attempt to come to a corroion
position relating to Bluffs 2nd addi;:ior and the general develops ent to occur
on the balance of B. F. 1 . proper-y. core te,nplated by Hustads .
To briefly recap the history of review on this proposal :
Hus tad's original proposal contained about 1198 1 u is . iii i s Fri oposU l was fairly
conss'stent with ordinance requirements with the exception that a variance was
being requested on the lot widths. The Planning Commission and Parks , Recrea-
tion and Natural Resources Commission reviewed this proposal and recommended
approval subject to several items of concern. 'One of the major items was that
the proposal included about thirteen lots platted on the north side of River-
view Road. The staff and commissions felt that based upon the soil conserva-
tion reper•t, advising against development on such steep slopes , platting of
these lots on the lower side of the river bluffs was unacc(,ptahle. The staff
recommendation was to eliminate the lower lots and to add the area to the
upper lots , thus creating large estate lots with building no lower than the
860 contour.
Hustads presented the original plan to the Council showing the lower lots as
one 12 acre outlot to be consi der`d at some later time.. The Counci 1 , however,
was very concerned about the disposition of the 12 acre Strop slope outlot,
the absence of mini-park, , and the Provision of a neighborhood park. Hustads
returned with a preliminary plat showing 212 lots with lot size and setback
variance requests, two totlots , agreement to pay the cash park fee and 2 units
per acre gross density (using the 12 acre steep slope as a density transfer and
agreeing to dedicate it to the City.
At this point negotiations began with S. F. I . for acquisition of the neighbor-
hood park site. There was approximately 31 acres in the area B. r. I . agrr4d
to sell at $4 ,000/acre, however, at that time the staff felt that only 20 acres
was necessary. Since B. F. I . was not willing tc sell only 20 acres fia,stad
agreed to purchase the remaining 11 acres from B.F. I. to bring about. the sale.
After review of the development costs , the Council felt higher land might L)e►
more desirable. Mr. Lambert pickod 12 acres further south which included
about 7 of the original 20 acres and 5 different acres. R. F . I . quotes! $10 ,000
per acre. The Council then requested an appraisal he done. The appraisal was
,( $5 ,500/acre for the area quoted by B. F. I .. at $10,000.
`t
Memo- Hustad Development Bluffs hest 2nd, Add. Page 2
The Council also requested a general overall plan for development Hustad
had in mind for the area. Since Hustads had mentioned that they may be
contemplating some multiple mirth of Bluffs 2nd addition and the 1968
guide plan and the proposed update both show low density development for a
this entire area, the staff approached Hustads with the idea of transferring
the 2 unit/acre density from the 31 acre lower area to the anticipated fu-
ture additions. Under this plan, the developer could be allowed higher net
densities on the balance of the property while conveying the open space to
the City in consideration of this. The cash park fee/unit and tot. 'lot areas
were to stay the same. The staff suggested since the City Council seemed
to voice approval of the 212 lot Bluffs West 2nd plat itself, that this
should not be changed.
What Hustads have submitted to you now is an overall plan which encompasses
270 gross acres and would anticipate approximately 807 units , bring the den-
sity overall to 2.99 unitsjacre.
The Bluffs West 2nd Addition was increased from the previous plan the Council
had reviewed of 212 unit lots, 244 lots or 2.26 .units/acre.
We understand from Hustads that about 30% of the lots would require a 68 foot
frontage, 30% 80 foot frontage and 400 90 foot frontage. From information
received you will note that 160 lots are shown less than 13,500�sq. ft. or
65OZ ^f the subdivision. This contrasts with Bluffs West 1st wniah was approved
with approximately 15°� under $13,500. ,
RECOMMENDATIONS
The staff feels that the overall concept of providing open land through a
density transfer is good and the mix of housing type and opportunity it pro- i
vides is desirable, however we recommend that the concept be utilized with
Bluffs West 2"rd Addition according to the 212 lot proposal previously seen
by the Council , and that the 563 anticipated units in the balance of the
project be revised down to obtain a gross density more consistent with the
City's existing standard of 2 units/acre.
a
No
rl n,,,2,A
Jet- ' < 197S
January 11 , 1979
Ec'en Prr.irie City Council
8950 Eden Prairie Road
E�:en Prairie, Mn. 55344
Re: Yorkshire Point
rear Mayor and Members o: the City Council:
Husted Development Corporation, Hart Custom Homes anc Zachnan Homes are
requesting a change in the Yorkohire Point Zoning Agreement.
Due to a number of circumstances, Hart Custom homes can not cou,Nlete the
Yorkshire Point Project. They have guilt 6 homes and are co.mmittc to
built' one ad:itional home. Hart. has arrarige(' to have Zachman Horses, Inc .
take over the construction of the twenty remaining lots.
Z achman Homes plans to construct three basic :fosse .styles with a varic;ty of
exterior treatments. The 1979 price for each of the houses is $54t9OO
which incluCes: sale fee, 41 mortgage points, 4 x 8 Storage buildings,
fully eeveloped lot, bittuninous drive and sidewalk.
Yorkshire Point is intenc'eO to be a small subdivision F xclusively for
lower priced single family homes. Hart Homes attemptef4 to complete the
project with a factory built system. Zachmr.n homes, Inc. plans to
complete the project with Similar style, site built homes. We are
confident the Zachman Homes gill complete Yorkshire Point as r: modest
cost family neighborhood as originally planned.
Mr. Zachmon ant I will be at the January 16th meeting to explain his plans
in morn retail.
Thernk you fo your consireration.
Richard Putnam
fluotLO Development Corporation
ape r
12750 PIONEER TRAIL, EVEN PRAIRIE, MINNE50-1A 55343 (612)941-4383