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041612SpecialCCHRAMeeting-completeagenda CITY OF RICHFIELD, MINNESOTA MONDAY, APRIL 16, 2012 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE SPECIAL CITY COUNCIUHOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:30 P.M. AGENDA Call to order Roll call 1. Consideration of first reading of ordinance authorizing sale of City property to Ron Clark Construction and Design City Council Staff Report No. 74 Notes: 2. Consideration of motion directing staff to schedule public hearing to consider sale of 211 76th Street West (former Gleason's Mortuary site) to Ron Clark Construction and Design HRA Staff Report No. 16 Notes: Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. richfield: April 2012 Page 1 of 2 City of Richfield Calendar Calendars Net Navigate: 2011 Jan Feb Mar Apr May Jun Jul Auq Sep Oct Nov Dec 2013 April 2012 Monday Tuesday Wednesday Thursday Friday 26 I Ma r• 27 28 29 30 5:30p Human Services 6:OOp Special City SATURDAY,MAR.31 Planning Council Council Worksession 9:30 a.m.-10:30 a.m. 6:OOp Richfield 7:OOp City Council Mayor's Hour-WLNC Bloomington Watershed Regular Meeting Management Organization @ Haeg Conference Room,City of Bloomington(meal at 5:30 p.m.) 6:15p Special Concurrent Richfield/Bloomington City Council Worksession @ Bloomington 7:00p Planning Commission 2 3 4 5 6 6:30p Human Rights 7:OOp Joint Meeting with 7:OOp Arts Commission Commission Transportation @ 7000 Nicollet Ave Commission and Community Services Commission- Bartholomew Room 9 10 11 12 1.3 7:OOp Planning 11:30a Tourism 7:OOp Friendship City Commission Study Promotion Board© Commission Session 6601 Lyndale Ave,Suite 106 5:45p Special City Council/H RA/P lan n i ng Commission Worksession 7:OOp City Council Regular Meeting 16 1.7 18 19 20 6:OOp Advisory Board of 7:OOp Community 7:OOp Friendship City SATURDAY,APRIL 21 Health Services Commission© Commission 9:30 AM-10:30 AM 7:OOp Regular Housing 7000 Nicollet Ave (rescheduled to April 12) MAYOR'S HOUR- and Redevelopment WLNC Authority Meeting 7:30p Special Concurrent City Council/HRA Meeting 8:OOp OR immediately following previous Special Meeting, whichever is later-- Special City Council/ HRA/Planning Commission Worksession 23 24 25 26 27 5:30p Human Services 5:45p Special SATURDAY,APRIL 28 Planning Council Concurrent City MAYOR'S HOUR 7:OOp Planning Council/Richfield School rescheduled to Sat., Commission Board Worksession April 21 7:OOp City Council Regular Meeting 30 1 I May 2 3 4 11:30a Tourism 7:OOp Transportation 7:OOp Arts Commission Promotion Board© Commission ©6335 Portland Ave 6601 Lyndale Ave,Suite 106 6:30p Human Rights Commission Display: Year Month Week Day Block List Condensed Abs Slide Calendars: Search http://www.my.calendars.net/richfield 4/12/2012 AGENDA ITEM#: I CC REPORT#: 74 STAFF REPORT rl(ii 11111 I ) CITY COUNCIL MEETING imirmormr APRIL 16, 2012 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: �R% r 'r NATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a first reading of an ordinance authorizing sale of City property to Ron Clark Construction and Design. I. RECOMMENDED ACTION: By Motion: Upon first reading, do not approve an ordinance for the sale of two City owned properties on the 7600 Block of Pillsbury Avenue to Ron Clark Construction and Design. II. BACKGROUND On April 4, 2012 Ron Clark Construction and Design (dba Connelly Development) submitted a revised land use application for a plat and a rezoning of the north portion of the former City Garage site and adjacent properties. The revised application includes two City-owned properties that were not part of the original land use application and that are not covered by the Option Agreement between the City and the Applicant for the sale of other City property. The locations of those properties (the City properties) are shown on the attached map. The revised proposal also includes additional land owned by the Housing and Redevelopment Authority (HRA). At the April 10, 2012 concurrent work session of the City Council, HRA and Planning Commission, members of all three bodies expressed concern that the proposed land sales needed to be addressed before the Planning Commission's 04162012 special CC Pillsbury land sale consideration of the revised land use application (currently scheduled as a public hearing on April 23, 2012). An ordinance authorizing sale of the City properties to Ron Clark Construction and Design is attached and is presented for first reading. Staff recommends that the City Council not approve the ordinance for first reading. The reason for the recommendation is that the Applicant's current proposal for the City properties and the HRA property (the former Gleason's Mortuary site) would leave all three lots underdeveloped and would concentrate the density of the proposed project in an unbalanced manner on the southern portion of the site. A Council vote to not approve the ordinance on first reading will also indicate that the Council does not consent to the proposed application to include the City properties in a rezoning or replat. The Applicant would be required to revise its current land use and subdivision application to remove the City properties. If the City Council wishes to further consider the sale of the City properties, the Council could approve the ordinance on first reading, set a second reading for May 8th, and provide direction to City staff regarding negotiations of a purchase price. Approval of the ordinance on first reading will also be considered as consent to the application for the proposed rezoning and subdivision, contingent on negotiation of an acceptable purchase price. III. BASIS OF RECOMMENDATION A. POLICY • The City Council has discretion to determine when it is in the public interest to sell City-owned property. B. CRITICAL TIMING ISSUES • The HRA is currently scheduled to consider whether to schedule a public hearing on the sale of the HRA property at the concurrent HRA/City Council meeting on April 16th (immediately following this item). • The Planning Commission is currently scheduled to consider the land use application associated with the City properties on April 23rd. • If the City Council elects to approve the first reading of an ordinance to sell this property, then the second reading and public hearing would occur on May 8, 2012. C. FINANCIAL • The sale of the City Properties would generate funds for the City. The Applicant has not made a formal offer for the purchase of the City properties. D. LEGAL • Legal Counsel has reviewed the contents of this staff report and will be in attendance of the April 16, 2012 meeting. • If the City desires to sell the City properties, the City Council could meet in closed session to consider an offer to sell or to provide direction to staff in negotiating a purchase price. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Approve first reading of an ordinance authorizing sale of City property to Ron Clark Construction and Design and call for a second reading and public hearing on May 8, 2012. V. ATTACHMENTS • Ordinance Authorizing Sale of the City Properties to Ron Clark Construction and Design. • Pillsbury Commons Proposed Site Plan. • Map of the City properties and adjacent properties. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Representatives of Ron Clark Construction and Design. • Legal Counsel. I—' ORDINANCE NO. AN ORDINANCE AUTHORIZING THE SALE OF PROPERTY OWNED BY THE CITY THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Background;fmdings;authority. 1.01. The City of Richfield (the "City") is governed by home rule charter adopted pursuant to the Constitution of the State of Minnesota and Minnesota Statutes,Chapter 410(Act). 1.02 The City is the owner of three parcels of real property located in the City of Richfield shown on the attached map(the"City Property")and legally described as: [insert legal description] 1.03. It has been proposed by Ron Clark Construction and Design(the"Developer")that the City sell the City Property to the Developer for the purposes of a housing development. Pursuant to Section 13.04 of the City's Charter,no real property of the City shall be disposed of except by ordinance. 1.04. The Council finds and determines that it is in the best interests of the City to sell the City Property to the Developer for the purposes of a housing development. Section.2 Adoption;effective date;filing. 2.01 The sale of the City Property to the Developer is approved. The Mayor and City Manager are authorized and directed to negotiate the sale of the City Property and take all steps necessary to effect such sale. 2.02. This Ordinance shall take effect after the thirtieth(30th)day,exclusive of day of publication. Passed by the City Council of the City of Richfield,Minnesota this day of 2012. Debbie Goettel,Mayor ATTEST: Nancy Gibbs,City Clerk 402004v1 JAE RC160-1 Z gC4 P r. 111 rr.1 4) -- _____ _ _______- -• 13321,LS HILL.1.23.1A - -— - d .. . C-1 ..P:!.... .4 C AO , . . ....,, 4 ; ..1 ,,, '!-.44-14,.,..17:zt-tH,-.,., ;,': .,. ..,1..i? .,. - , -,,,,,: . -.,,, : !,,:.,, tiftrif - - 03) 1-4 -,.. z I 71- ,, 71 ' I r. ■ r - :. te ' 4 ‘. •i ''• 6.r",'• II •IP I I •'' ' ' 4.1 .1 - i.• - "' ' ''' '' f• ''.•• "...'' •--,?, .% -. 7.4..-• . Ct/ I , . .„ . I ..1...PI ',. i•••■4 'j'. '..,: . 'ear";t.'.,,,,, ' . , . . ■ CLI " - ‘; ' - • I (1.).. , ...:-• ." 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'flag lot' ' rv. • 4 ill 3 11 N ay t '.-71.2;,..' '., - . 1. : ' t 1 . "� �� ,City *II' {LI _ .', 1 ,, H , . . i ■ . 6 .s.k1,..litit kt."4'',4Z.,.-'. ' - t'''' A m .. t q,;q - AGENDA ITEM#: 2 HRA REPORT#: 16 imilidal STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING APRIL 16, 2012 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR 1 NAME,TITLE DEPARTMENT DIRECTOR REVIEW: 12 / 'l REVIEWED BY EXECUTIVE DIRECTOR: ,/i 4 ......_ __, 17 ITEM FOR HRA CONSIDERATION: Consideration of a motion directing staff to schedule a public hearing to consider the sale of 211 76th Street West (former Gleason's Mortuary Site) to Ron Clark Construction and Design. I. RECOMMENDED ACTION: By Motion: Resolve not to schedule a public hearing to consider the sale of 211 76th Street West (former Gleason's Mortuary Site) to Ron Clark Construction and Design. II. BACKGROUND On April 4,2012 Ron Clark Construction and Design (dba Connelly Development) submitted a revised land use application for a plat and a rezoning of the north portion of the former City garage site and adjacent properties. The revised application includes the Housing and Redevelopment Authority (HRA) owned property at 211 76th Street West (the former Gleason's Mortuary site). In addition, the revised proposal also includes two City-owned properties that were not part of the original land use application and that are not covered by the Option Agreement between the City and the Applicant for the sale of other City property. The locations of the HRA property (as well as the City properties) are shown on the attached map. 04162012 Gleason Mortuary Site Sale At the April 10, 2012 concurrent work session of the City Council, HRA and Planning Commission, members of all three bodies expressed concern that the proposed land sales needed to be addressed before the Planning Commission's consideration of the revised land use application (currently scheduled as a public hearing on April 23, 2012). In order for the HRA to sell its property to Ron Clark Construction, it must first schedule and hold a public hearing to consider such an action. Staff recommends that the HRA not call for a public hearing to consider this land sale. The reason for the recommendation is that the Applicant's current proposal for the HRA property would leave this property substantially underdeveloped and underutilized and would concentrate the density of the proposed project in an unbalanced manner on the southern portion of the site. It is staffs belief that it was never the intention of the HRA to purchase this property (as it did in 2000) only to sell it to be used only as a drive aisle and open space. Moreover, if the City Council does not approve its land sale ordinance on first reading, the development plan that the sale of the HRA property would have furthered is effectively ended. Failure by the HRA to call for a public hearing to consider sale of its property will also indicate that the HRA does not consent to the proposed application to include the HRA property in a rezoning and subdivision. The Applicant would be required to revise its current land use and subdivision application to remove the HRA property. If the HRA wishes to further consider the sale of the former Mortuary property, the HRA could adopt a motion calling for a public hearing at its May 21, 2012 meeting and provide direction to City staff regarding negotiations of a purchase price. Adoption of a motion to set a public hearing on the sale of the HRA owned property will also be considered as consent to the application for replatting and rezoning, contingent on negotiation of an acceptable purchase price. III. BASIS OF RECOMMENDATION A. POLICY • The HRA has discretion to determine when it is in the public interest, and meets the goals and objectives of the HRA, when it is considering the sale of HRA-owned property. B. CRITICAL TIMING ISSUES • The City Council is currently scheduled to consider a first reading of an ordinance for the sale of the two adjacent City-owned properties at the concurrent HRA/City Council meeting on April 16 (immediately preceding this item). • The Planning Commission is currently scheduled to consider the land use application associated with the City properties on April 23. • If the HRA adopts a motion to schedule a public hearing for the sale of the HRA-owned properties that public hearing would be scheduled to occur on May 21. C. FINANCIAL • The sale of the HRA-owned property would generate funds for the HRA. The Applicant has not made a formal offer for the purchase of the HRA-owned property. D. LEGAL • Legal Counsel has reviewed the contents of this staff report and will be in attendance of the April 16 meeting. IV. ALTERNATIVE RECOMMENDATION(S) • Adopt a motion to schedule a public hearing for the consideration of the sale of 211 66th Street West to Ron Clark Construction and Design at the May 21 HRA Meeting. V. ATTACHMENTS • Pillsbury Commons Proposed Site Plan. • Map of the HRA-owned property (211 76th Street West) and adjacent properties. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Representatives of Ron Clark Construction and Design. • Legal Counsel. )-( . .._ .. rE.71 , rill- JaSSIS KUL IS3B, d ...- .,, N --, i. (0 -Ink. CV i * ,..4 4. "If -'''''''1°-, '1" 4 .'''114-1* .' ' "'I', ' -, ..'' ' '',''• 4..;• .-- 474"\-i' K.. .,4 ,,1- „ ''. it . ., re ' 4 . _ ;4 , ' . .7,to . vt ' , ,riv . , -‘. 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