Eagan Special City Council Meeting – Legislative Priorities, BCBS Concept, Funfest – February 11, 2025

This special workshop meeting of the Eagan City Council was held on February 11, 2025, at 5:30 p.m. at the Eagan Municipal Center. It included a joint session with state legislators, an informational concept plan review for the former Blue Cross Blue Shield headquarters site, a Funfest update from the volunteer-run nonprofit committee, and approval of revised council meeting dates. No public hearings or formal votes were taken on the concept plan or Funfest items.

Agenda Amendment

• The council agreed to add an item to approve revised regular and special city council meeting dates for January 2025 through 2026, due to a formatting error that omitted some meeting dates.

Joint Meeting with Eagan Legislators

• State Senators Jim Carlson (SD 52) and Aaron McQuaid (SD 56), and Representatives Liz Reyer and John Hewitt attended. Sen. Carlson chairs the Elections Committee; Sen. McQuaid serves on education, state/local government, and human services committees; Rep. Reyer serves on Capital Investment, Health, and Commerce.
• Ann Finn of the League of Minnesota Cities (LMC) said LMC represents 841 of Minnesota's 856 cities. She highlighted LMC's 14 priorities, focusing on housing (supporting local decision-making), a bonding bill, public safety (EMS and public safety duty disability), and adjustments to earned sick and safe time and paid family leave. She noted the league is analyzing federal executive orders affecting cities.
• Patty Nauman of Metro Cities (legally the Association of Metropolitan Municipalities) said Metro Cities represents cities in the seven-county metro and lobbies the legislature and the Metropolitan Council. Metro Cities supports state-local housing partnerships, local tools, bonding, fixing the construction sales tax exemption, and funding for local inflow/infiltration work.
• Tom Poole of the Municipal Legislative Commission (MLC), a coalition of 18 suburban cities, said MLC supports transportation programs, economic development funds, a robust and regionally balanced bonding bill, and local option sales tax reforms. He expressed opposition to tax equalization requirements and supported flexibility for trails/parks funding and an inflation factor. On housing, MLC wants to work with stakeholders on condominium reform, TIF pooling, and zoning code updates while preserving local decision-making.
• Legislators and council members discussed housing policy. Sen. Carlson said he does not want the legislature to make local zoning decisions, citing neighborhood concerns over school conversions. Sen. McQuaid supported local control but noted he supports HOA reform and is concerned about parking mandates, and he has signed on to a bill addressing apartment rent price-fixing by Rent Pages. Rep. Reyer emphasized that policy (not budget) is the likely low-hanging fruit in a tied House, and she discussed concerns about federal funding uncertainty and data centers.
• The Mayor noted that density does not always equal affordability, citing Eagan and Lakeville experiences. Council members asked about state demographic trends and EMS funding. Sen. McQuaid mentioned a proposed cell phone user fee to fund EMS response.

Concept Plan: Blue Cross Blue Shield Site

• Planning Manager Mike Schultz presented the concept plan for approximately 42.5 acres (excluding the northern soccer-field parcel). Inland Development Partners (Tom Shaver and Steve Schwonke) proposes a 282,000-square-foot production/cold warehouse/office building on the northern 25 acres, requiring a comp plan amendment from major office to industrial. The southern 16 acres (including the daycare) is proposed for future residential (townhomes/multifamily) in roughly five years.
• The applicant said the facility would employ about 650 people across three shifts: 320 on first shift (5:30 a.m.–2 p.m.), 300 on second shift (3 p.m.–11:30 p.m.), and the remaining approximately 30 on third shift (8:30 p.m.–5 a.m.). Inbound truck traffic is estimated at 17 trucks/day and outbound at 15 trucks/day, using standard 18-wheelers. The building height would stay within the I1 code limit of 40 feet. The daycare would be maintained as a recruitment/retention tool.
• Council members raised concerns about the industrial use's compatibility with existing residential areas, especially the proposed southern residential buffer. Councilmember Bachin suggested complementary commercial/office uses as a buffer instead of residential, and the Mayor expressed concern about residential abutting industrial. Councilmember Fields (remote) said Blackhawk Road and Highway 13 is a difficult intersection and urged routing truck traffic away from Blackhawk. Councilmember Hanson asked about noise/aromas and grease processing; the applicant said no detectable aromas but will follow up on food processing details.
• Staff noted an environmental assessment (EAW or AUR) would likely be required. No formal action was taken; the applicant indicated they will consider the feedback before deciding whether to file an application.

Funfest Update

• Funfest committee volunteers Andy (board member), Marie Olson, and Brent Corey presented. Funfest is run by a nonprofit, not the city, with a board of 11. The city provides about $55,000 in-kind sponsorship for fireworks, public safety, and porter pies. Corporate sponsorships target $40,000–$45,000 annually. The parade is a loss leader. The ambassador program provides scholarships: $2,000 for high school and $1,000 for middle school students, and about $21,000 annually supports community groups including Lions, Legion, police explorers, and Scouts.
• The board considered four options: eliminate carnival, keep carnival with security, move the event to Viking Lakes, or disband the nonprofit. The board chose to keep the carnival and invest in additional security. New measures for 2025 include: adding five additional unarmed security personnel per night, a carnival preview day on July 2 from 4–8 p.m. (for families without music/beer), staggering closing times (beer last call at 10 p.m., music/food trucks at 10:30, carnival at 11), focusing marketing more on Eagan residents rather than the seven-county metro, and developing bilingual (Spanish and Somali) communication plans. The committee also asked the city to align communications so the public understands the nonprofit/city partnership.
• Council members asked about carnival revenue (net about $10,000), revenue variability due to weather, and exit-staggering logic. They generally supported the plan.

Key Outcomes

• Approved the revised regular and special city council meeting dates January 2025 through 2026 (motion carried unanimously).
• No votes were taken on the BCBS concept plan or Funfest proposals. The BCBS applicant will use council feedback to decide whether to file a formal application. The Funfest committee will implement its 2025 changes and report back.