12-12-06 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
December 12, 2006
The meeting was called to order by Mayor Kirsch at 5:35 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Sue Sandahl.
Members
Not Present:
Staff Present:
Bill Kilian; and Fred Wroge.
Steven Devich, City Manager; Mike Eastling, Public Works Director; Bruce
Palmborg, Community Development Director; Pat Smith, Community
Development Manager; Tom Foley, Transportation Engineer; Cheryl
Krumholz, Recording Secretary; and Corrine Thomson, City Attorney.
Item #1
City Attorney Thomson discussed the "new" eminent domain law process related to relocation
benefits for commercial properties (business displaced by condemnation action). Businesses can
obtain up to $50,000 of re-establishment costs. The "old" or current law cap is $10,000 with
government entities (the condemning authority) having the option to extend the cap to $50,000. The
"new" law maximum is $50,000.
City Attorney Thomson stated that at tonight's regular City Council meeting, the City Council
will be asked to authorize a resolution to commence the condemnation process for the 66th
StreeUPortland Avenue intersection process. The process will begin yet this year or early January
under the "old" law provision of $10,000 for re-establishment benefits unless the City Council
authorizes an increase up to $50,000.
Ken Helvey, SRF Consulting Group, Inc., relocation consultant, summarized the types of
business relocation alternatives and eligible and ineligible re-establishment expenses up $50,000 or
$10,000 when federal money is involved in the project or under MN Statute. He reviewed the types of
claims included in a typical case.
Mr. Helvey said businesses typically meet or exceed the cap of $10,000.
City Attorney Thomson stated MnDOT has been paying a cap of $50,000 for approximately
four years and most local entities pay a $10,000 cap.
Council Member Sandahl said she prefers the "old" law because of the uncertainties of the
"new" law.
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December 12,2006
City Attorney Thomson explained that if the City Council authorizes condemnation tonight, the
City will proceed immediately to file the condemnation petition to be within the exception to the new
Legislation. The City Council should have the option to increase the cap to $50,000 for re-
establishment expenses subject to compliance with federal law requirements.
City Manager Devich said this Worksession discussion is being held because of the proposed
resolution regarding the 66th Street/Portland Avenue project.
Mayor Kirsch suggested the "old" law be used but consider increasing the re-establishment
cap.
Council Member Sandahl asked about how this applies to possible subsequent takings for this
project.
City Attorney Thomson said discussions with other property owners are proceeding well but
that could change and result in condemnation.
Item #2
Community Development Manager Smith discussed the proposed mixed-use redevelopment
project on 69th Street between York and Xerxes Avenues in Edina. A traffic impact study determined
the roadway could support this project. Edina city staff recommended denial to the Planning
Commission because the project required a variance for the building height and floor area ratio. The
Edina Planning Commission gave the developers a month to revise their plans for reconsideration at
the end of December.
Community Development Manager Smith said Richfield staff has requested a copy of the
revised plan. If the Planning Commission approves the plan, it will be considered by the Edina City
Council in January. Richfield staff will monitor the project and keep the City Council updated.
Council Member Rosenberg expressed concern regarding parking hardships for Richfield
residents along Xerxes Avenue. She disputed the traffic study findings and suggested traffic calming
options be considered.
Mayor Kirsch said the building height is an issue.
Council Member Sandahl said it appears disingenuous that the distance a project like this can
be closer to a Richfield residential area than an Edina residential area.
Community Development Manager Smith said Edina Planning Commission liked the idea of a
mixed-use development but had concerns regarding all the variances needed.
Council Member Sandahl stated there are parking concerns.
Council Member Rosenberg said she does appreciate the investment along city borders but
there needs to be respect.
City Manager Devich said a more comprehensive report on the Southdale redevelopment
project will be provided at a future Worksession.
Mayor Kirsch suggested the Transportation Commission and Planning Commission be
involved in monitoring this project.
The City Council requested Richfield staff attend the Edina meeting.
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December 12, 2006
The meeting was adjourned by unanimous conse
Date Approved: Januat:Y q. 2007
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Recording Secretary