Eagan City Council Regular Meeting - June 2, 2026

The Eagan City Council held its regular meeting on June 2, 2026, at 6:30 PM at the Eagan Municipal Center. The meeting included recognitions, approval of a consent agenda with numerous items, a presentation on the 2025 Annual Comprehensive Financial Report (ACFR), and discussion on two new business items: an Interim Use Permit (IUP) renewal for Viking Lakes overflow parking and a Comprehensive Guide Plan Amendment for the former Blue Cross Blue Shield site. The council voted to continue the guide plan amendment to the June 16, 2026 meeting after extended public comment and council deliberation.

Recognitions and Presentations

• Lifesaving Award presented to Perminder Singh and Seth Flolid, Eagan Community Center employees, for performing CPR and using an AED to save a victim of cardiac arrest on November 5, 2025.
• Outstanding Citizen Award presented to Gabrielle Conklin, who called 911 after observing an elderly couple being scammed at a cryptocurrency ATM, preventing a loss of over $100,000.

Consent Calendar

• The consent agenda was adopted unanimously, including:
  • Approval of minutes from the Special Council Meeting (May 12, 2026) and Regular Council Meeting (May 19, 2026).
  • Personnel items, check registers, contracts, and a resolution accepting donations.
  • Change Order No. 1 for Northview Park Tennis Court Improvements (City Contract 26-03).
  • Contract with LVC Companies for access control equipment at the South Treatment Plant.
  • Cancellation of the July 14, 2026 City Council Workshop.
  • Appointment of Councilmember Cyndee Fields as Acting Mayor from June 2, 2026 to January 18, 2027.
  • Acceptance of a grant from the Minnesota Department of Public Safety for the Pathways to Policing Program.
  • Action to not waive monetary limits on municipal tort liability.
  • Resolution and off-site gambling permit for the Eagan Lions Club.
  • Show license for Amusement Attractions, Inc. carnival during the 4th of July Funfest (July 2–4, 2026).
  • Findings of Fact for administrative determination regarding rental licensing requirements.
  • Adoption of the 5-Year Public Works Capital Improvement Plan (2027-2031) and authorization of 2027-2028 improvements.
  • Award of Contract 26-09 for 2026 Manhole Lining.
  • Revisions to Winter Trail Maintenance Plan.
  • Agreement with RailWorks Track Systems, LLC for railroad crossing surface replacement at TH 3/Red Pine Lane and TH 149/Wescott Road.
  • Revisions to Special Assessment Policy.

2025 Annual Comprehensive Financial Report (ACFR)

• Rebecca Peterson of Red Path and Company presented the audit results. The city received a clean (unmodified) opinion, the highest level of assurance. No internal control issues, no legal noncompliance, and no federal single audit (due to threshold increase to $1 million). Key highlights:
  • General fund fund balance increased significantly due to building permit revenue and cost savings. Unassigned fund balance is at 46% of next year's expenditure budget, within the city's 40-50% policy.
  • Capital project funds increased due to TIF collections paying down deficits and unspent debt proceeds.
  • Public utilities fund operating revenue does not fully cover depreciation, indicating a need for rate adjustments (as discussed in a prior workshop).
  • Civic arena operating revenue covers operating costs but not depreciation; aquatic facilities fund is performing well. Community center fund requires transfers to cover operations.
  • The city maintained its AAA bond rating for 2025 debt issuance.
• Council accepted the report unanimously.

Discussion Items

Interim Use Permit (IUP) – Viking Lakes Overflow Parking

• Item A: Request to consolidate and extend three IUPs for temporary overflow parking (approx. 49 acres, 2,000 stalls) for events at TCO Stadium and Viking Lakes. The original permit was approved in 2018; two parcels were expiring in June 2026, one in June 2027. The applicant sought a three-year extension to June 30, 2027 (as stated in the agenda memo), but the council clarified the term would be three years from approval (June 2, 2029).
• The Advisory Planning Commission (APC) recommended approval unanimously on May 26, 2026. The applicant provided an update on development progress: 485 residential units, three commercial/medical office buildings, an Omni hotel, and retail (Belvery May, Copper and Rye). Events in 2025 hosted 250,000 visitors; 2026 expected up to 350,000.
• Public Comments: None.
• Council Comments: Council expressed general support but noted recurring IUPs should eventually transition to permanent solutions. The motion carried unanimously.

Comprehensive Guide Plan Amendment – BCBS Redevelopment (Opus Development)

• Item B: Request to change land use from Major Office to Business Park (BP), Medium Density Residential (MD), and High Density Residential (HD) on 41.5 acres at 3535 and 3545 Blue Cross Road. Concept plan shows up to 466,000 sq ft business park, 500 apartment units, and 126 townhomes. The APC recommended approval 6-1 on May 26, 2026.
• Public Comments: Several residents spoke, expressing:
  • Traffic concerns on Ashbury Road, Blackhawk Road, and surrounding streets, especially with the proposed density (approx. 600+ housing units plus business park).
  • Lack of neighborhood notification; many residents stated they did not receive notice (city clarified 350-foot radius, newspaper publication, and signage were used).
  • Support for residential reuse but opposition to industrial/business park on the east side of Highway 13.
  • Preference for repurposing the existing building, though council noted it is functionally obsolete.
  • Concerns about school capacity (site is in ISD 197), sewer/water infrastructure, lighting, and affordable housing.
• Council Deliberation:
  • Mayor described the application as a high-level concept ("blobs") that would require an Alternative Urban Area-wide Review (AUAR), Metropolitan Council review, and subsequent detailed plans before implementation. At least four votes would be needed later to adopt the land use change.
  • Councilmember Fields expressed concerns about density too close to existing single-family homes and traffic.
  • Councilmember Bachand cited the need for affordable housing if commercial-to-residential conversion occurs.
  • Councilmember Sabina questioned traffic trip generation; staff noted the old office generated 2,500 trips/day, while residential would generate different patterns (fewer trips but more concentrated at peak times).
  • The mayor noted the site is one of four major vacant/underused office campuses impacting 4% of the city's tax base.
• Outcome: Motion to continue (table) the item to the June 16, 2026 meeting passed 4-1. The applicant will have time to reconsider the proposal and potentially withdraw or modify it. If denied, the city code may bar reapplication for one year; staff will verify.

Key Outcomes

• Consent agenda approved unanimously.
• 2025 ACFR accepted unanimously.
• IUP for Viking Lakes overflow parking approved unanimously for a three-year term (through June 2, 2029).
• Comprehensive Guide Plan Amendment for BCBS site continued to June 16, 2026 on a 4-1 vote. Council indicated skepticism about the current concept, particularly the speculative business park use and density near existing neighborhoods.