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07-11-06 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting July 11, 2006 The meeting was called to order by Mayor Kirsch at 6:30 p.m. Members Present: Martin Kirsch, Mayor; Sue Sandahl; Fred Wroge; Susan Rosenberg; and Bill Kilian. Staff Present: Steve Devich, City Manager; Mike Eastling, Public Works Director; Bruce Palmborg, Community Development Director; Jim Topitzhofer, Recreation Services Director; Brad Sveum, Fire Services Director: Pat Smith, Community Development Manager; Chris Regis, Finance Manager; Cheryl Krumholz, Recording Secretary; and Corrine Thomson, City Attorney. No one was registered to speak. Mayor Kirsch led the audience in the Pledge of Allegiance. M/Rosenberg, S/Sandahl to approve the minutes of (1) Reoular City Council Meetino of June 13. 2006: (2) Special City Council Meetino of June 23. 2006: and (3) Special City Council Worksession of June 27. 2006. Motion carried 5-0. Council Meeting Minutes -2- July 11, 2006 Item #1 Kari Palmer, Minnesota Pollution Control Agency (MPCA), presented an update on the air monitoring report related to sites near the Minneapolis-St. Paul (MSP) International Airport. Council Member Kilian requested future reports include trend lines on the graphs. Ms. Palmer stated the MPCA prefers one-year of data and this monitoring began in December 2005. The MSP monitor is staying through 2006 and then removed because the equipment is needed elsewhere in the metro area. The monitors will be retained at the Minneapolis Weenoah School and Richfield Intermediate School. Rick Strassman, MPCA, said the MSP monitor has been there since 2002 and it is a resources issue to keep it there. Item #2 Fire Services Director Sveum presented rank insignias to recently promoted Richfield Fire Officers Fire Captain Dave Quebodeaux, Fire Captain Dana George and Fire Lieutenant Wayne Kewitsch. Item #3 Gordon Vizecky, Community Services Commission Chair, reported on the commissions past year's accomplishments and next year's goals. Item #4 Council Member Rosenberg asked David Gepner, who coordinated receiving the prize donations, to select the Richfield Beautiful Home and Garden Tour prize winners. Mr. Gepner stated Penn Cycle and Erik's Bike Shop provided the prizes. Council Member Sandahl discussed the City Council forming a team to participate in the September 9 FOWL Ball Golf Klassic. Council Member Kilian announced the July 12 Airport 101 Seminar sponsored by the Noise Oversight Committee at the Bloomington City Hall. Council Member Kilian discussed his concerns regarding comments made by Council Member Wroge at the June 13 City Council meeting on the 17th Avenue neighborhood petition Council Meeting Minutes -3- July 11, 2006 requesting a priority for buyout. He said the area was made to sound as less desirable because of the airport and homes could be sold to make more affordable housing available. Phase II of the Cedar Point project includes multi-housing and Phase III includes the 17th Avenue neighborhood. Council Member Kilian stated he hoped the City Council was together to try to make certain to get the airport noise area to not be less desirable but as desirable and competitive as the rest of the City. Council Member Wroge responded that Council Member Kilian comments about what he said are not factual. He asked about the City Council agreeing to have the Open Forum on cable television so the interpretation of comments is accurate. Council Member Wroge said he has compassion for this area but no funds are available for more development. He questioned why the residents would put up with airport noise and possibly more noise from Cedar Point, and not sell. The resident who presented the petition said she tried to sell her home but there were no buyers. The reasons why it didn't sell are not known. Council Member Wroge said he does not consider the east side less affordable. He met with the four highest realtors in Richfield and they all agree that if houses are properly priced, they will sell on the east side as well as the west side. He said he has spoken with the City Manager and requested a Worksession to discuss this topic. Council Member Wroge read a letter from a resident complimenting three Richfield Police Officers regarding their response to a recent incident in the City. Council Member Wroge congratulated the Fourth of July Committee for the what he thought was Richfield's best fireworks display. Council Member Wroge discussed his concerns regarding development in Richfield. He suggested the City Council be provided every three months with a list of anyone interested in property development, housing or commercial. He said he requested development information on a specific property and his expectations were not met with what was provided because too little information was available. The City Council needs to know who wants to develop in Richfield and professional records need to be kept that includes more than just a last name or just a phone number. He wants the City Council to consider who comes forward and what's done. City Manager Devich stated the information provided goes back to 2001 and 2002. Council Member Wroge said he wants to make sure development is done at an arm's length away. City Manager Devich stated the staff would do everything the City Council desires. Community Development receives numerous inquiries and some are never heard from again. He suggested that firm criteria be set so the City Council's expectations are met. City Manager Devich added that he believes then, as now, on a staff level, transactions are conducted at an arm's length. Community Development Director Palmborg requested the City Council provide direction on contact information so there are agreed upon guidelines for expectations. He said sometimes contact is made and the client isn't known or staff cannot be told, which is not uncommon. Community Development Director Palmborg asked how the City Council would benefit if provided with this information. Council Member Wroge said it gives transparency to issues and people are not being told they don't fit in with the City's plan. Council Meeting Minutes -4- July 11, 2006 Council Member Kilian questioned how much the City Council should micro-manage the City. The City Council has one employee, City Manager Steve Oevich. If there are questions of the City Manager, he should be asked. Undue constraints should not be placed on people by telling department heads how to operate. He said it looks like a trail is trying to be created so down the line if things are not going a certain way, there's a way to get somebody. Council Member Kilian said he opposed doing more than is currently done regarding development inquiries. Council Member Sandahl stated she believed it not unusual to not keep phone inquiries of six years ago. She said it is not reasonable to expect staff to go back to 2000. Council Member Sandahl said the City Manager is responsible for City staff. The City Council provides broad policy direction and if the City Council doesn't like the way staff is handling implementation, it's not approved. She said the City Council's role is not to micro-manage. She expressed concern that one City Council Member would call people about doing business here when there are four others on the Council. Council Member Wroge said this is not micro-managing. He said he does not like one or two staff telling people they do not fit in the City's plan when it's not before the HRA or City Council. Council Member Kilian questioned the purpose of going back to 2000 information. Council Member Wroge said it is hard for him to defend his point because he is trying to stay generic and not identify the specific property he is referencing. He said he believes there are things going on and he supports businesses. The City Council agreed to conduct a future Worksession to discuss expectations related to development inquiries. Council Member Rosenberg stated she supported Council Member Kilian's comments regarding east Richfield, and did not like hearing disparaging remarks related to that part of the City. Both the east side and west side need to be supported because if one-third of Richfield goes down, the entire City goes down. Council Member Wroge said his belief that property in east Richfield can be sold is backed up by four realtors. It is a fallacy that he considers the east side not as valuable. Mayor Kirsch said the City staff conducts an annual meeting with realtors. Council Member Kilian requested the realtors provide a comparison of price between homes sold on the market and homes bought out by the City. Council Member Wroge said it is unfair to say a resident is not moving because of relocation costs and realtor fees. Council Member Kilian stated that if a vacant lot is behind a home, it may not enhance selling. Item #5 Mayor Kirsch removed Consent Calendar Item 6A and made it Agenda Item 7. M/Sandahl, SlWroge to approve the aQenda as amended. Council Meeting Minutes -5- July 11, 2006 Motion carried 5-0. Item #6 A. Removed from the Consent Calendar and placed on the regular agenda for consideration as Item 7. B. Approved requesting Minnesota Department of Transportation to properly maintain their rights of way throughout Richfield S.R. No. 145 M/Sandahl, S/Rosenberg to approve the Consent Calendar as amended. Motion carried 5-0. Item #7 6A.. Consideration of approval of resolution amending off-street parking permit at 1430 66th Street East S.R. No. 144 Council Member Wroge presented Staff Report No. 144. He discussed his concerns regarding the lack of property maintenance, the length of time they have to fix a broken fence, and parking issues, especially related to unauthorized use of Frenchman's lot. He said Ms. Blake, Frenchman's owner, told him she has tried to discuss parking with the grocery store but it hasn't changed the use. Ms. Blake informed him the fence is hers, was broken by snowplowing and she will get it fixed. Council Member Wroge requested this item be tabled to allow time to check into the maintenance and parking issues and ownership of the fence. Council Member Sandahl said she agreed to tabling this item. There appears to be some leniency on asphalt coverage and not making the grocery store rent parking spaces. If they're allowed to skate by, the attempt to make Richfield a green city is not working. Council Member Kilian stated agreement with tabling action. There are some good permit conditions to meet. He said he thought there was disagreement years ago between Frenchman's and the former Kenny's grocery store. Community Development Director Palmborg clarified that the City Council's concerns are the percentage of impervious surface, parking space rental and the November deadline to complete all the conditions. Council Member Wroge added there should be a way to make sure parking on the east side of the store is not abused. Community Development Director Palmborg said there needs to be a physical impediment to stop that from happening. Council Member Wroge stated that he hoped City staff would help Frenchman's. Ms. Blake said she was willing to work with the business but they do not appear willing. He said the grocery store needs to understand their obligations. Council Meeting Minutes -6- July 11, 2006 Mayor Kirsch said Kenny's still owns the store so there is a lease-holder to consider. Council Member Kilian stated some conditions could be done before November 1. Community Development Director Palmborg clarified the deadline for all conditions to be completed is November 1. Council Member Sandahl suggested not having parking in front of the store and making it a green space. Community Development Director Palmborg said there needs to be some space for unloading and there is some green space at the base of the sign. Council Member Wroge discussed delivery locations at the store. He said Ms. Baker told him that she had not been notified by City staff of the proposed changes at the grocery store. M/Kilian, S/Wroge to table consideration of this item to a future City Council meetino to allow time for City staff to review the issues raised by the City Council tonioht. Motion carried 5-0. Item #8 Council MemberWroge presented Staff Report No. 146. Public Works Director Eastling discussed the area best suited for additional ponding. Tonight's public hearing is required by the City Charter because the property is City owned. Public Works Director Eastling discussed the funding for this project. George Holter, 6424 Emerson Avenue, stated his objections to raising the paths and having the path on both sides of the pond instead of along the outside. Public Works Director Eastling discussed how the proposed improvements impact flooding resulting in a net gain of water storage. Council Member Wroge asked why the paths are not around the pond. Public Works Director Eastling explained the paths are through the pond based upon recreation use, aesthetic purposes and a water quality solution decided years ago. Council Member Wroge questioned the stagnate water problem. Public Works Director Eastling explained the reshaping of the pond to find a waterway. Doris Rubenstein, 6515 Emerson Avenue, stated her concerns regarding ponding cleanliness, safety due to an increased path height and pond depth. Council Meeting Minutes -7- July 11, 2006 Public Works Director Eastling stated the Hennepin County Sentence to Serve crews do these types of maintenance. He explained the 4 to 1 path slope which is considered walkable and mowable. The path could be tempered back but flooding is trying to be addressed. There are no drop offs in the pond so there would be wading into deeper water. Council Member Wroge discussed the residents' concerns regarding the thick underbrush obstructing the view of the water and the need for the replacement of the play features. He said if this is going to be a residential area, the water should be seen. He clarified the dead trees are part of the environment. Public Works Director Eastling explained the uncertainty to the changing area resulted in waiting to replace play features. Staff will work with Wood Lake Nature Center to determine the removal or retaining of underbrush. M/Rosenberg, SlWroge to close the public hearino. Motion carried 5-0. MlWroge, S/Rosenberg that this constitutes the second readino of Bill No.. 2006-11 , Transitory Ordinance No. 18.38 authorizino the desion. construction and construction manaoement of a perimeter pond on Richfield Lake. that it be published in the official newspaper and that it be made part of these minutes: and that the followino resolutions be adopted and that they be made part of these minutes: RESOLUTION NO. 9792 RESOLUTION APPROVING SUMMARY PUBLICATION OF A TRANSITORY ORDINANCE APPROVING A CAPITAL IMPROVEMENT PROJECT FOR THE DESIGN, CONSTRUCTION AND CONSTRUCTION MANAGEMENT OF POND IMPROVEMENT TO RICHFIELD LAKE, PURSUANT TO RICHFIELD CITY CHARTER SECTION 8.04 RESOLUTION NO. 9793 DECLARING THE OFFICIAL INTENT OF THE CITY OF RICHFIELD TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY Motion carried 5-0. These resolutions appear as Resolution No.'s 9792 and 9793. Item #9 Council Member Sandahl presented Staff Report No. 147. George Holter, 6424 Emerson Avenue, stated he thought the current garage could be improved and a new one wasn't needed. He added the City should keep it for themselves but if the property is sold, he would like to buy it and relocate his bus garage from Bloomington. Council Meeting Minutes -8- July 11, 2006 David Gepner, 6845 Penn Avenue, said he was a participant in the maintenance facility task force and was in favor of the process with a new facility. He said nothing has happened since then to change the task force's recommendation. M/Rosenberg, SlWroge to close the public hearinQ. Motion carried 5-0. M/Sandahl, S/Kilian that this constitutes the second readinQ of Bill No. 2006-12, Transitory Ordinance No. 18.39 authorizinQ the planninQ. desiQn and construction of a new Maintenance Facility. that it be published in the official newspaper and that it be made part of these minutes: and that the followinQ resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 9794 RESOLUTION APPROVING SUMMARY PUBLICATION OF A TRANSITORY ORDINANCE APPROVING A CAPITAL IMPROVEMENT PROJECT FOR THE CONSTRUCTION OF A PUBLIC WORKS GARAGE, PURSUANT TO RICHFIELD CITY CHARTER SECTION 8.04 Council Member Sandahl said this project has received a thorough investigation. There is a higher and better use of the land when the maintenance facility is moved to a new location. Council Member Wroge expressed his concern that the open house was held earlier this evening and the City Council is now voting on the project two hours later. He wished the open house was held two weeks ago because public input from tonight has not been received. He hoped this timing would be considered on future projects. Council Member Wroge asked about the plan and what was being voted on tonight. He said he supports the need for a new garage but he knows where the facility is moving but not what is being constructed. City Manager Devich explained tonight's City Council action is complying with the City Charter requirement authorizing the City to move forward with the project by hiring an architect to prepare an updated, more realistic construction plan with the associated costs to determine financing options. Council Member Rosenberg said she's received four calls of support for this project, which is not an inclusive survey, but typically no calls are received. Council Member Kilian stated the project cannot go forward unless the City Council votes to authorize obtaining the information. When that information is available, another open house could be held. City Manager Devich said there would be a public hearing process for bonding to occur when more accurate information is available. Motion carried 5-0. This resolution appears as Resolution No. 9794. Item #10 Mayor Kirsch presented Staff Report No. 148. Council Meeting Minutes -9- July 11, 2006 City Manager Devich explained the rationale for approving the resolution tonight as a record of moving forward with the project so when bonds are sold, the City is able to get reimbursed for these costs. Finance Manager Regis added the resolution provides flexibility to seek reimbursement for up-front costs into the project. M/Rosenberg, S/Kilian that the followinQ resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 9795 DECLARING THE OFFICIAL INTENT OF THE CITY OF RICHFIELD TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY Motion carried 4-0. (Sandahl absent.) This resolution appears as Resolution No. 9795. Item #11 Council Member Kilian presented Staff Report No. 149. Community Development Manager Smith discussed the proposed land acquisitions. Heidi Gaibor, 6915 Wentworth Avenue, spoke about the value of this property, tax abatement, and deal making with prime Richfield land. Sid Inman, Ehlers & Associates financial advisor to the City and HRA, explained the project financing, including the "But For" analysis and development agreement. Council Member Wroge asked about the square footage amount paid by Target. Mr. Inman stated Target requested that information be kept confidential because of the competitive nature of the business. Council Member Wroge asked Mr. Inman for his estimated opinion of the value of an acre of commercial property in Richfield. Mr. Inman responded it depended upon the use but estimated $6 to $6.50 per square foot. Council Member Wroge stated he talked with developers who said Richfield value was $18 to $19 per square foot because of the City's location in the transportation hub system. He asked about the amount the City was selling the remaining 30 acres of land to Ryan and if that amount wasn't known, why the City was moving forward. Council Meeting Minutes -10- July 11, 2006 Mr. Inman discussed the site preparation costs associated with determining the square footage cost. He expressed caution in comparisons. It takes a large, big box retailer to determine cost to create the synergy for smaller businesses in a development. City Manager Devich clarified the reference to 30 acres. City Attorney Thomson stated to compare costs, there needs to be a completely clean site. Site assembly costs of different properties adds value and a tabulation of all those costs reduces the $18 square footage. Mr. Inman explained the "but for" analysis. There are more risks to develop a Cedar Point type of property than green space. Council Member Kilian said the City hires trusted people to help make decisions and that analysis should be reliable and not second guessed. Mr. Inman added that he believes there are far more costs than what's recovered. The State Auditor also is looking at this project for accuracy. Ms. Gaibor stated this location is excellent and businesses should be willing to be here and help with costs. Mr. Inman discussed the tax abatement process, including the properties and taxes. Council Member Rosenberg said no one is beating down the door to develop on other Richfield sites. A developer is much more objective than some residents. Cedar Point is an excellent development which may become an incentive to improve other businesses along 66th Street. Sometimes you need to pay some to gain some. Lynn Morgel, 6439 17th Avenue, asked about the time line for Ryan to fulfill the contingencies to purchase her property. City Attorney Thomson discussed the July 25 ordinance second reading related to the excess land along 17th Avenue. City Attorney Thomson discussed the remaining significant issues with the MAC land title restrictions on the property MAC provided funding for the City to purchase, which will be considered by the MAC Board on July 17. Ryan would not lift their contingencies until that agreement is reached. Negotiations are underway and if MAC approves the agreement and Ryan, Target and Home Depot find the terms acceptable, then the contingencies may be lifted. MAC staff does not expect this matter to be controversial by the board so it is on the consent calendar, but the item can be removed by a board member for consideration. George Holter, 6424 Emerson Avenue, asked about Home Depot being permitted at Cedar Point but the City not allowing Menards to increase their size on 77th Street. Community Development Director Palmborg explained the City has not received any request from Menards or any sort of financing to undertake that project. He discussed the 1-494 Corridor zoning process. The City is supportive of Menards' desire to expand their store under the vision and zoning of the City. City Attorney Thomson stated the public hearing tonight is to consider property sold by the City to the HRA. Financing decisions have already been made. M/Rosenberg, S/Sandahl to close the public hearinQ. Motion carried 5-0. Council Meeting Minutes -11- July 11, 2006 M/Kilian, S/Rosenberg that this constitutes the second readinq of Bill No. 2006-13. Transitory Ordinance No. 18.40 authorizinq and providinq for the sale. transfer or other disposition and conveyance of certain city owned real property located in the City of Richfield. County of Hennepin. State of Minnesota (66th StreetlTH 77 Interchanqe Proiect and Cedar Point Proiect). that it be published in the official newspaper and that it be made part of these minutes; and schedule a public hearinq and second readinq of a Transitory Ordinance on July 25. 2006 authorizinq the sale of real property to Ryan Companies US. Inc. in accordance with the Option and First Riqht of Refusal Aqreement. Council Member Wroge asked about the motion stating the sale to the HRA. City Attorney Thomson stated the ordinance includes that information. The July 25 second reading of the ordinance is for only the excess land along 17th Avenue. Motion carried 5-0. Item #12 Council Member Kilian presented Staff Report No. 150. Larry Wozniczka, 6744 Wentworth Avenue, requested a breakdown of the lots. City Attorney Thomson explained the proposed twelve lots and two outlets with the principle lots occupied by Super Target and Home Depot. The resolution provides that Block 2 may be split off from the final plat or move forward in the final plat. All closings are anticipated on approximately September 30. City Attorney Thomson stated it is possible the City may not own all the land needed for the 66th Street/17th Avenue roundabout construction at the time of closing so the City Council is approving an alternate form of the plat, which Ryan would submit for approval. Council Member Kilian asked about the different configurations. City Attorney Thomson explained it is anticipated the area would be developed and marketed as individual plots. Once platted, any lot could be conveyed to a different owner. Council Member Wroge said he thought Ryan owned all the land except Target. City Attorney Thomson responded that Ryan owns all the land in order to record the plat, which could then be developed and marketed as individual sites. Council Member Wroge questioned why he was told the Cedar municipal liquor store could not be part of this development because Ryan wants to own the land and the City did not want to lease. City Attorney Thomson explained that, with respect to the subdivision approval, the City does not have a great deal of discretion in approving the plat. The statute says where preliminary approval is given and all conditions for the subdivision approval are met, the City is legally obligated to give final plat approval. Council Member Kilian said just because Ryan can sell the land does not mean they would sell. Council Meeting Minutes -12- July 11, 2006 City Manager Devich stated he recalled the discussion regarding the municipal liquor store location in the Cedar Point development was in Block 1 which is the portion Ryan did not want to sell. He added that at the time of that discussion, the information on Blocks 1 and 2 was accurate. George Holter, 6424 Emerson Avenue, said if land became available, he wanted to bid on it. Ralph Sanders, 6508 17th Avenue, asked about the affect Block 2 would have on selling his home to Ryan. City Attorney Thomson responded the purchase agreement would be with Ryan and suggested he contact them. She said she expected the contingency requires Ryan to obtain governmental approval. Also, contingencies would not be lifted until the MAC deed restrictions are settled. If that cannot be settled, Ryan can decide not to proceed, which would not lift contingencies. City Attorney Thomson.c1arified the plat process for Block 2 and that additional discussions with Ryan need to occur. M/Rosenberg, S/Kilian to close the public hearinQ. Motion carried 5-0. M/Kilian, S/Sandahl that the followinQ resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 9796 RESOLUTION GRANTING FINAL APPROVAL OF A SUBDIVISION FOR RYAN COMPANIES US, INC. AND THE CEDAR POINT COMMONS PROJECT. Motion carried 5-0. This resolution appears as Resolution No. 9796. Item #13 Council Member Rosenberg presented Staff Report No. 151. M/Rosenberg, S/Sandahl to authorize Wednesday. AUQust 30.2006 and Thursdav. AUQust 31. 2006 at 5:00 p.m. (if necessary) as Special City Council meetinQs to review and discuss the 2007 Proposed/2006 Revised BudQet preliminary tax levv prior to certification to the County on September 15. 2006. Motion carried 5-0. It m #14 City Manager Devich announced the July 18 MAC quarterly public input meeting in the Council Chambers. Council Meeting Minutes -13- July 11, 2006 Item #15 M/Rosenberg, S/Sandahl that the followinQ claims and pavrolls be approved: U. S. BANK AlP Checks: 151202 - 151423 PAYROLL 31182 - 31596; 41150 - 41172 TOTAL $ $ $ 1,116,210.45 560,660.96 555,549.49 Motion carried 5-0. The City Council meeting was adjourned by unanimous consent Date Approved: Au~st 8" 2006 ~~ Cheryl rumho Recording Secretary