06-11-02 Regular
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CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 11,2002
The meeting was called to order by Mayor Kirsch at 6:33 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; John Enger; Gertrude Ulrich; and
Sue Sandahl.
Staff Present:
Samantha Orduno, City Manager; Steven Devich, Administrative Services
Director; Mike Eastling, Public Works Director; Bruce Palmborg,
Community Development Director; Jim Topitzhofer, Recreation Services
Director; Bruce Nordquist, Housing and Redevelopment 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 the Reqular City Council Meetinq of
Mav 28, 2002.
Motion carried 5-0.
Council Meeting Minutes
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June 11, 2002
Item #1
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Council Member Sandahl presented certificates of appreciation and roses to the current Miss
Richfield Ambassadors and to this next year's Ambassador candidates.
Item #2
Council Member Rosenberg reviewed the actions and efforts of Virginia Morris, Youth
Services Librarian at the Augsburg Park Community Library, which demonstrated the reasons for her
being awarded the 29th Annual Gene & Mary Jacobsen Outstanding Citizen Award. Brent Pavia,
Human Rights Commission Chair, presented the award to Ms. Morris. He also recognized two other
citizens who were nominated for the award but were not present: Sally Parsons for her work as an
Advisory Board of Health member, and Calvin Millmann for his reputation of helping neighbors and
being "The Good Neighbor" of his community.
Item #3
Brent Pavia, Human Rights Commission Chair, reviewed the commissions 2002 annual report
including goals and accomplishments.
Council Member Rosenberg, liaison to the commission, said she was impressed with Mr.
Pavia's leadership and the commission's energy.
The City Council thanked the commission for their efforts.
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Item #4
Community Development Director Palmborg acknowledged the Minnesota Chapter of
National Association of Housing and Redevelopment official 2002 Allen Anderson Award of Merit
presentation to Bruce Nordquist, HRA Manager in the Community Development Department. Mr.
Palmborg explained the award is presented to a member of the Minnesota Chapter who has
distinguished themselves with excellence and leadership in their career in housing and/or community
development.
The City Council thanked Bruce Nordquist for his initiatives and efforts in meeting the housing
needs in Richfield.
City Manager Orduno said the City is producing its own cable TV show called "Out and About I
in Richfield" with Steve Devich and Pam Dmytrenko as co-hosts. She explained that the purpose of
the show is to highlight interesting places, events and people in Richfield and to provide information
about City-related issues.
City Manager Orduno said that a City Council 2002 and a Richfield 2020 goal was to promote
Richfield and expand the use of the government access cable TV channel.
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June 11, 2002
The show regarding the Richfield pool renovation was presented to the City Council.
Mayor Kirsch announced that City Manager Orduno was recently elected to the Association of
Metropolitan Municipalities Board of Directors.
Council Member Sandahl explained the impacts of the May 23 Supreme Court's failure to
reach a majority decision regarding the merits of the tax increment financing challenge brought by
Walser Automotive against the HRA and City.
Mayor Kirsch announced the upcoming City Hall Summer Bus Tour schedule. He also
announced that the June 25 City Council meeting would be at Wood Lake Nature Center.
Council Member Ulrich said she recently returned from a trip to northern England and
Scotland. She said transportation and housing were also controversial issues in the United Kingdom.
Mayor Kirsch asked if any of the July 4 activities and events would need posting as Special
City Council meetings since the Council could all be present.
City Attorney Thomson said the open meeting law does not apply to social gatherings such as
July 4 events. She cautioned the City Council that if they are together, City business cannot be
discussed.
Mayor Kirsch scheduled a Special City Council Worksession on June 24 at 5:30 p.m. at the
Water Plant to discuss a variety of issues, including property maintenance, traffic and parking.
Mayor Kirsch informed the City Council that there was one vacancy on the Planning
Commission due to a resignation. He said four applicants from the annual recruitment were not
appointed to the Planning Commission. He asked the City Council if these four should be re-
interviewed for the Planning Commission or if a new recruitment should begin.
The City Council said the four previous applicants should be re-interviewed.
Mayor Kirsch directed staff to contact the applicants regarding their continued interest in the
Planning Commission and then schedule a Special City Council meeting to conduct interviews.
Council Member Rosenberg thanked the HRA and City attorneys and City staff for their work
in the Best Buy project.
Council Member Rosenberg requested staff to contact the City of Bloomington regarding their
ordinance on stray cats.
Council Member Rosenberg requested that the bus shelter issue be revisited because she
believes the needs of the people were lost in the controversy.
Item #5
M/Ulrich, S/Rosenberg to approve the aqenda.
Motion carried 5-0.
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June 11, 2002
Item #6
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A. Approved first reading of ordinance amendment to City Administrative Code Chapter III,
Subsection 310.39 describing bereavement leave and scheduling second reading for July 9,
2002 S.R. No. 139
B. Removed from the consent calendar and placed on the regular agenda for consideration as
Item 7.
C. Approved resolution requesting League of Minnesota Cities Insurance Trust to accept
participation of Richfield Tourism Promotion Board in insurance trust program S. R. No. 141
RESOLUTION NO. 9186
RESOLUTION REQUESTING THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST TO
ACCEPT THE PARTICIPATION OF THE RICHFIELD TOURISM PROMOTION BOARD IN ITS
INSURANCE TRUST PROGRAM
This resolution appears as Resolution No. 9186 in Resolution Book No. 74.
D. Approved resolutions declaring costs to be assessed and ordering preparation of
assessment roll for 2001 removal of diseased trees from private property and setting date of
hearing for July 23,2002 S.R. No. 142
RESOLUTION NO. 9187
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RESOLUTION DECLARING COSTS TO BE ASSESSED AND
ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR
REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY
FOR THE PERIOD OF JANUARY 1,2001 TO DECEMBER 31, 2001
RESOLUTION NO. 9188
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT
FOR DISEASED TREE REMOVAL FROM PRIVATE PROPERTY
FOR THE PERIOD JANUARY 1, 2001 TO DECEMBER 31, 2001
These resolutions appear as Resolution No.'s 9187 and 9188 in Resolution Book NO.7 4.
E. Approved resolutions declaring costs to be assessed and ordering preparation of
assessment roll for 2001 77th Street maintenance and setting date of hearing for July 23,
2002 S.R. No. 143
RESOLUTION NO. 9189
RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF
PROPOSED ASSESSMENT FOR 77TH STREET MAINTENANCE I
JANUARY 1, 2001 THROUGH DECEMBER 31, 2001
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June 11, 2002
RESOLUTION NO. 9190
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR 77TH STREET
MAINTENANCE JANUARY 1, 2001 THROUGH DECEMBER 31, 2001
These resolutions appear as Resolution No.'s 9189 and 9190 in Resolution Book No. 74.
F. Approved resolutions declaring costs to be assessed and ordering preparation of
assessment roll for 2001 Lyndale/HUB/Nicollet Maintenance and setting date of hearing for
July 23,2002 S.R. No. 144
RESOLUTION NO. 9191
RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF
PROPOSED ASSESSMENT FOR LHN MAINTENANCE
JANUARY 1,2001 THROUGH DECEMBER 31,2001
RESOLUTION NO. 9192
RESOLUTION FOR HEARING ON PROPOSED ASSESSMENT FOR LHN MAINTENANCE
JANUARY 1, 2001 THROUGH DECEMBER 31, 2001
These resolutions appear as Resolution No. 's 9191 and 9192 in Resolution Book NO.7 4.
G. Approved resolution proposing to specially assess costs of current services provided within
77th Street project area for January 1, 2003 through December 31, 2003 and setting public
hearing for July 23, 2002 S.R. No. 145
RESOLUTION NO. 9193
RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT
SERVICES PROVIDED WITHIN THE 77TH STREET PROJECT AREA FOR THE PERIOD
JANUARY 1,2003 THROUGH DECEMBER 31,2003
This resolution appears as Resolution NO.9193 in Resolution Book No. 74.
H. Approved resolution proposing to specially assess costs of current services provided within
Lyndale/HUB/Nicollet project area for January 1, 2003 through December 31, 2003 and
setting public hearing for July 23, 2002 S.R. No. 146
RESOLUTION NO. 9194
RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT
SERVICES PROVIDED WITHIN THE L YNDALE/HUB/NICOLLET (LHN) PROJECT AREA FOR
THE PERIOD
JANUARY 1, 2003 THROUGH DECEMBER 31, 2003.
This resolution appears as Resolution No. 9194 in Resolution Book NO.7 4.
I. Approved continuing agreement with City of Bloomington for public health services for City of
Richfield for 2002 S.R. No. 147
J. Approved resolution authorizing execution of Joint Cooperative Agreement between City of
Richfield and Hennepin County for participation in Urban Hennepin County Community
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June 11, 2002
Development Block Grant and HOME Investment Partnership Programs in 2003-2005 S.R.
No. 148
RESOLUTION NO. 9195
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RESOLUTION AUTHORIZING THE EXECUTION OF A JOINT COOPERATION AGREEMENT
BETWEEN THE CITY OF RICHFIELD AND HENNEPIN COUNTY FOR PARTICIPATION IN THE
URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM IN FY
2003-2005
This resolution appears as Resolution No. 9195 in Resolution Book No. 74.
K. Approved amendment to contract with Gremmer and Associates for planning, architectural
and engineering consulting services for Phase Two of Outdoor Pool Renovation Project for
design fee equal to 8% of actual construction cost (design fee estimate $104,126) S. R. No.
149
L. Approved new multi-animal residential license for 7609 Colfax Avenue, three dogs S.R. No.
150
Council Member Rosenberg asked to remove Item 6B from the Consent Calendar and place it
on the regular agenda.
Mayor Kirsch removed Consent Calendar Item 6B and placed it on the regular agenda as Item
7.
M/Rosenberg S/Sandahl to approve the Consent Calendar as amended.
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Motion carried 5-0.
Item #7
Council Member Rosenberg suggested that, in the future, the Richfield Community Council
or the Richfield Community Human Services Planning Council be considered as the disbursement
of funds committee because these organizations are more involved with human service issues.
She requested that the Richfield Foundation not be set as a precedent as the disbursement
committee.
M/Rosenberg, S/Sandahl to approve the aqreement between the City of Richfield and the
Richfield Foundation for the disbursement of Healthy Youth mini-qrant fundinq received from the
Minnesota Department of Health on behalf of the City of Richfield in the amount of $5,000.
Motion carried 5-0.
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Item #8
City Manager Orduno reviewed Staff Report No. 151 regarding an amendment to Chapter
IX of the City Code by adding Section 911, Phosphorus Fertilizer Control, and consideration of a
resolution approving a summary publication of the ordinance amendment.
Public Works Director Eastling provided background on the proposed ordinance. He said
the City must have an ordinance banning phosphorus in fertilizer effective by August 1, 2002 or the
legislation enacted recently to eliminate most phosphorus containing fertilizer is effective January
1, 2004.
Council Member Enger asked if the City needed an ordinance dictating to stores what
fertilizer can be sold. He said State law prohibits the sale of phosphorous in fertilizer unless a soil
test dictates the need.
Public Works Director Eastling said that regulation eventually will be under State control.
He said it is not timely to prepare that ordinance now.
Bob Shotwell, 7333 Upton Avenue, suggested that the public be educated on the safe use
of phosphorus instead of making an ordinance that is unenforceable.
M/Rosenberg, S/Sandahl to close the public hearinq.
Motion carried 5-0.
M/Sandahl, S/Enger that this constitutes the Second Readinq of Bill No. 2002-19 an
amendment to Chapter IX of the City Code by addinq Section 911, a Phosphorus Fertilizer Control
Ordinance, that it be published in the official newspaper and that it be made part of these minutes.
Council Member Sandahl said there was an agreement with the Minnehaha Creek
Watershed to pass this ordinance.
Council Member Enger asked for clarification of the effective date for tonight's ordinance.
City Attorney Thomson said the Richfield ordinance is effective 31 days following
publication, which will be prior to August 1, 2002.
Council Member Enger said since most people have already purchased their lawn
chemicals, there is the potential of making them angry if the chemicals cannot be used now.
City Attorney Thomson said the City can stay the enforcement of the ordinance.
City Manager Orduno said the enforcement does not need to be part of the ordinance;
direction from the City Council to staff to defer enforcement would be adequate.
M/Enger to direct staff to not enforce the current no phosphorus fertilizer use ordinance for
the 2002 qrowinq season.
Council Member Ulrich suggested the deferred enforcement be date specific.
Enger restated the motion to direct staff to enforce the no phosphorus fertilizer use
ordinance effective February 1, 2003 and proceed forward.
S/Sandahl with a friendly amendment that in the interim of deferred enforcement. direct
staff to educate property owners and notify lawn care providers of the ordinance.
Council Member Enger accepted the friendly amendment to the restated motion.
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June 11, 2002
M/Enger, S/Sandahl to direct staff to enforce the no phosphorus fertilizer use ordinance
effective Februarv 1, 2003: and that in the interim of the deferred enforcement. direct staff to
educate property owners and notify lawn care providers of the ordinance.
Motion carried 5-0.
M/Sandahl, S/Enger that the followinq resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9196
RESOLUTION AUTHORIZING SUMMARY PUBLICATION OF
BILL NO. 2002-19
Motion carried 5-0. This resolution appears as Resolution No. 9196 in Resolution Book No.
74.
Item #9
City Manager Orduno reviewed Staff Report No. 152 regarding modified policies and
criteria for awarding business subsidies.
Housing and Redevelopment Manager Nordquist reviewed the background related to
general criteria for business subsidies in response to a new law regulating business subsidies.
Council Member Enger said there appeared to be contradictory statements in Sections
1.02, 1.03 and 2.01 between City and State options on amending or waiving criteria.
Steve Bubul, Kennedy and Graven attorney, said the criteria do reflect what Statute
indicates. He said the criteria are not fixed rules, but guidelines that indicate the procedure if the
City deviates from the criteria.
Council Member Enger said there appeared to be contradicting statements in Sections 4.01
and 1.03 between project review on a case-by-case or as a whole basis.
Mr. Nordquist said this is meant to ensure that there is not a different set of criteria for
different projects.
Camillo DeSantis, 6508 Newton Avenue, said he agreed that the sections mentioned did
appear contradictory and needed better clarity.
M/Rosenberg, S/Sandahl to close the public hearinq.
Motion carried 5-0.
Council Member Sandahl said that subsidy criteria applies to all projects and each project is
evaluated on criteria as a whole.
Mayor Kirsch said the action tonight brings the City into compliance with the State.
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June 11, 2002
M/Sandahl, S/Kirsch to adopt the modified policies and criteria for awardinq business
subsideies.
Motion carried 4-1. (Enger opposed.)
Item #10
City Manager Orduno reviewed Staff Report No. 153 regarding a public hearing regarding
resolutions approving modifications to redevelopment plan for Richfield Redevelopment Project
Area, establishing City Bella Tax Increment Financing District within Richfield Redevelopment
Project Area and adopting a Tax Increment Financing Plan.
Housing and Redevelopment Manager and City Bella Project Manager Nordquist provided
background related to the project which completes the comprehensive redevelopment of the
southwest quadrant of 66th Street and lyndale Avenue. He said this area has been identified for
redevelopment since 1975.
Mr. Nordquist explained the Richfield Redevelopment Project area which includes all
redevelopment districts and includes those single family neighborhoods where a single
substandard home or home undergoing major renovation is likely to occur on a scattered site
basis. He explained the other tax increment financing (TIF) districts in the City include the
lyndale/Hub/Nicollet (lHN), Interstate/lyndale/Nicollet (llN), Interchange (Galyan's), Interchange
West, Gramercy, Urban Village and Richfield Rediscovered (a voluntary purchase program). Mr.
Nordquist explained the 15.81% captured valuation and the 6.7% area of Richfield in TIF. He said
the redevelopment project area is a large boundary used as a planning tool, but it does not state
the entire City is in redevelopment. Mr. Nordquist stated that recent court decisions required the
repeating of a statement of fact: Proper, thorough and professional evaluation has occurred in
making the findings on blighting and substandard conditions contained in the staff report and to be
presented.
Mr. Nordquist said SEH was the engineering firm selected to inspect each parcel in the
project area for blight conditions.
Michael Wozniak, SEH, reported on the City Bella planning area blight assessment which is
comprised of seven properties bounded by lyndale Avenue, 66th Street and lake Shore Drive.
He stated the statutory definition of blight. Mr. Wozniak reviewed the evaluation of criteria for
determination of blight on the seven properties. He also reviewed the summary findings of the
blight assessment.
Council Member Ulrich questioned the deleterious land use assessment.
Mr. Wozniak said the issues were site configuration and access to properties and
appearance of buildings, not the use itself.
Council Member Enger asked for an explanation of obsolescence, faulty arrangement,
excessive land coverage and obsolete layout.
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June 11, 2002
Mr. Wozniak said the Statute does not explain in detail what the terms mean. He said the
City needs to make educated judgements and interpretation of the criteria.
Council Member Enger questioned the reference to excessive building land use for site
parking for the Lyndale Hardware site.
Mr. Wozniak said the criteria was correct according to current City standards.
Council Member Enger said he disagreed and took issue with each blight assessment. He
said it appeared the City could change codes so any business could be made obsolete and
dilapidated. He said the City was responsible for not letting Mr. John Sieff, Lyndale Hardware
owner, sell his property as a hardware store. He asked the age of the buildings.
Mr. Wozniak answered they were built in the early 1950s.
Council Member Enger stated he disagreed with the Lyndale Hardware blight conditions of
poor access/egress condition and inadequate parking. He said the Lynch house exterior needs
regular maintenance as do most homes in Richfield. He said he had problems with regulations
and guidelines established by the State for blight. He said he feels beyond repair is blighted and
any property or home could be found blighted and removed. He said it appears the same
determinations for blight in the Interchange West area were used and the court said the City did it
wrong.
City Attorney Thomson said the blight issue needs to distinguished from the substandard
building analysis. These are two separate statutes. She explained the court decisions related to
these determinations.
Mr. Nordquist said the Lyndale Hardware business was undergoing changes related to
economic viability. He said Mr. Sieff negotiated a favorable acquisition. He said the Lynch house
was a single family home in a high density commercial area. He said the 66th StreetlLyndale
Avenue area is considered the core of the City and must remain vital and viable.
Council Member Rosenberg asked Mr. Wozniak how much experience he has in assessing
for blight. She also asked if his judgement was superior to the City Council.
Mr. Wozniak said he had 18 year's experience, both public and private. He said
judgements need to be made regarding criteria.
Council Member Sandahl asked the number of buildings that were inspected inside and
outside.
Mr. Wozniak said Lyndale Hardware and Checkers were inspected inside.
Mr. Nordquist said building assessments are specific TIF findings, not the blight findings.
Council Member Enger asked Mr. Wozniak the first time he examined buildings for blight
according to the statute.
Mr. Wozniak said for the City of Hastings.
Jason Zemke, SEH project architect, reviewed the reasons and facts supporting the
findings for the adoption of the TIF Plan for the City Bella TIF District as required by statute. He
also discussed the Redevelopment Eligibility Assessment including:
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. Documentation of contacts/evaluations
. Qualification requirements
. Measurements against technical test requirements
· Site coverage/building substandard determination
Mr. Zemke said the Lynch property was only an outside evaluation because the owner
wanted to discuss how to proceed with their attorney.
Council Member Rosenberg asked if it was common practice to evaluate from the street
when inside access is denied.
Mr. Zemke said it does happen.
Mr. Nordquist said there is a written statement from the owner stating no interest in an
inside inspection.
Sid Inman, Ehlers & Associates, provided a TIF District overview and the modification to the
Redevelopment Plan for the Richfield Redevelopment Project Area. He said the redevelopment
plan is modified to include redevelopment and development activities to facilitate the construction
of parking facility, ownership townhomes, rental apartments, cooperative units, commercial space,
public facilities, public utilities and public roadways, sidewalks and skyways.
Council Member Enger asked if the maximum TIF is $26.5 million and if the selling of
general obligation bonds was necessary.
Mr. Inman said that amount was the current estimate and no general obligation bonds are
needed because the financing is a pay-as-you-go note.
Council Member Enger asked if the $2.5 million for the skyway system was necessary.
Mr. Nordquist said past discussions with the community on how to move pedestrians
through the area resulted in the skyway system. He said other funding for the skyway is being
sought.
City Manager Orduno said the skyway system is a long range plan to meet community
needs.
Council Member Enger asked who would own and maintain the skyway and if there was an
agreement.
Mr. Nordquist said it would be privately owned and maintained by adjoining businesses. He
said no agreement is in place; it is a conceptual plan.
City Manager Orduno said the City would not own and maintain the skyway unless directed
otherwise.
Council Member Ulrich said she attended meetings where discussions occurred regarding
the difficulty crossing the intersection and agreed the skyway is the answer, but the City is not to
be responsible for funding and maintenance.
Mike Conlan, Gramercy Corporation President, 6601 Lyndale Avenue, Suite 101, reported
that the Lyndale Hardware site has been purchased; negotiations are underway for Trestman and
Checkers sites; an agreement has been reached to purchase the Lynch home; a conditional
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June 11, 2002
purchase agreement is in place with Lakeshore Drive, and the other parcels are HRA-owned. He
provided an update on the rental space.
Council Member Rosenberg asked about office space and affordable housing.
Mr. Conlan said no office space is proposed, rather retail space which would include a
restaurant. He and the HRA had cooperatively sought $800,000 from Hennepin County to fund
affordable rental housing. Preliminary notice indicated the funds will not be received. As an
alternative, he said entry-level affordable condominiums are being explored. He said Metropolitan
Council guidelines are being followed and the affordable test is $170,000.
Council Member Enger asked what type of project would be built if no TIF was provided.
Mr. Conlan said there would be no project.
Council Member Enger asked the prices of the tower units.
Mr. Conlan said $200,000 to $600,000.
Council Member Enger asked how affordable guidelines would be met if apartments
became for sale.
Mr. Conlan said he is still working on the unit prices.
Council Member Enger asked if the City has guidelines to require affordable housing in new
developments.
City Manager Orduno said 20% is the target. Providing affordable housing is a guideline,
not a requirement.
Council Member Enger said that would mean no affordable housing would ever need to be
provided. He said if high-density housing is continued, it may result in no affordable housing. He
read a summary from a Hennepin County letter stating the TIF proposal does not satisfy the
Hennepin County Board of Commissioners' preference for use of TIF.
City Manager Orduno said it is a City Council decision regarding providing affordable
housing.
Council Member Enger asked what percentage of people signed up at City Bella are
Richfield residents.
Mr. Conlan did not know the percentage.
Council Member Enger said there needs to be affordable or low income housing so
Richfield residents can stay in the City. He said most residents in his ward don't have the money
to move into a place like City Bella. He asked the retail cost of a unit.
Mr. Conlan said $50-100,000 to join a cooperative; individual prices are monitored by a
master mortgage.
City Manager Orduno said she found the Hennepin County letter questionable. She said
Hennepin County may have a preference, but they do not provide funding assistance - the City
has been unsuccessful in securing grants.
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Council Member Enger said he could go to east Richfield and the properties would meet the
blight criteria to create a TIF District.
City Manager Orduno said the east side is being evaluated as directed by the City Council
in January.
Council Member Rosenberg asked what generated the Hennepin County letter.
Mr. Inman said it is a requirement to notify Hennepin County and this was a standard
response.
Council Member Ulrich said she does not consider Mr. Conlan showing good corporate
citizenship. She expressed displeasure with the recent sign/fence problem and a poor attitude
concerning parking issues.
Mr. Conlan explained examples of a good working relationship with the City. He said the
banner was removed from the fence since the City believed it violated the ordinance. He said the
banner was a marketing technique to attract people to the area.
Mr. Nordquist said there are many public purposes for the new City Bella proposed
development including: an integrated development of housing, commercial, parking and green
space elements with pedestrian paths to adjacent existing uses. He said additional tax base and
job opportunities will also be provided.
Steven Froemming, 6600 Pleasant Avenue, questioned the maintenance of affordable
housing areas so it doesn't become an unfavorable environment.
City Manager Orduno said cooperatives and associations for the apartments would have
rules and regulations governing activities.
Carl Cornell, 6615 Lake Shore Drive, said City Bella is a first class project that doesn't need
TIF. He said the east side of Richfield will need a lot of work, so TIF should be saved for projects
that need it.
Mayor Kirsch said that without TIF, there would be no City Bella project. He said TIF is a
tool the City needs because of being a fully developed community.
Woody Duvlea, 7345 Lyndale Avenue, commented on the percentage of TIF in Richfield;
when the district is due to expire or be recertified and all district lengths are 25 years. He said the
Mall of America in Bloomington tax increment length was ten years.
City Manager Orduno said the law prohibits recertification of a TIF District. She said the
Mall of America received substantial subsidies and she would verify the ten-year length of TIF.
Camillo DeSantis, 6508 Newton Avenue, commented on affordable housing, including the
need for a distinction between affordable and low income housing. He said he did not oppose the
TIF District, but his main concern is getting something in return when a subsidy is granted. He
suggested a policy be developed requiring that a publicly subsidized development must include low
cost housing.
City Manager Orduno said scattered single-family homes, not apartments, could be
considered for public housing.
Mr. Nordquist said the most successful demonstration of affordable housing in the City
through federal funding is Section 8, Habitat for Humanity and Community Development Block
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Grants. He said, since 1995 and the Livable Communities Act, Richfield provides economically
integrated housing opportunities.
Bob Shotwell, 7333 Upton Avenue, stated that it sounded like the TIF District was trying to
be justified. He questioned the reasoning for affordable housing within this project if the
development is in the core area of Richfield because high value and quality need to be maintained.
He questioned using this amount of TIF for the project.
Robert Hall, 7309 Oliver Avenue, said the evidence of blight appeared heavily influenced by
evaluation. He suggested deleting the skyway if the TIF District is approved tonight. He said the
City Council should not dismiss the comments of the elected Hennepin County Board.
Larry Wozniczka, 6744 Wentworth Avenue, commented on the extent of subsidies for
luxury housing. He said that should operate without TIF and be removed from the district. He said
to remove the skyway and parking from TIF and make it part of development costs. He suggested
reducing the TIF to a maximum of ten years to sustain affordable taxes in the rest of Richfield.
M/Rosenberg, S/Sandahl to close the public hearinq.
Motion carried 5-0.
Council Member Ulrich said providing more affordable housing in Richfield is unreasonable.
She said a federal program should provide every American a safe and affordable home.
M/Sandahl, S/Kirsch that the followinq resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9197
RESOLUTION APPROVING MODIFICATIONS
TO THE REDEVELOPMENT PLAN FOR THE
RICHFIELD REDEVELOPMENT PROJECT AREA
Council Member Enger asked the cost of the total project. He asked if the town homes
would be developed privately and not built with TIF.
Mr. Conlan said the project cost is slightly in excess of $65 million.
Mr. Nordquist said the developer is funding the townhome portion of the project.
Council Member Enger asked if it was legal to not use excess tax increment for the overall
project.
Mr. Inman said it's not unusual for certain parts of a project to generate TIF for other parts
of the project that have greater eligible costs than the TIF that will be generated.
Council Member Enger said in response to the comment regarding high value and quality
housing in the area, mixed housing should be included. He said downtown Minneapolis has
mixed.
City Manager Orduno said Minneapolis is eligible for much more federal funding and has
opportunities Richfield does not.
Council Member Enger said mixed housing should not be considered just because grants
are not available.
City Attorney Thomson clarified the motion currently before the City Council as identifying
the development activity that would be authorized as part of the redevelopment plan.
Council Member Ulrich asked what vote was necessary for passage of the resolution.
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June 11, 2002
City Attorney Thomson said a majority.
Mayor Kirsch requested the clerk to conduct a roll call vote.
Motion carried 3-2. (Rosenberg and Enger opposed.) This resolution appears as
Resolution No. 9197 in Resolution Book No. 74.
Council Member Ulrich said she reluctantly voted yes because the plan is so far along that
it was not reasonable to stop it now.
M/Sandahl, S/Kirsch that the followinq resolution be adopted. that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9198
RESOLUTION ESTABLISHING THE CITY BELLA TAX INCREMENT FINANCING DISTRICT
WITHIN THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING A TAX
INCREMENT FINANCING PLAN THEREFOR
Council Member Rosenberg said the City Bella project does not need TIF. She said
constituents are tired of TIF and redevelopment. She said she understands TIF is a godsend to
Richfield because of the improvements made in the 1980s. She said if the 66th Street/Lyndale
Avenue area is in high demand, developers should want to be there without TIF. She said
developers should be required to include affordable housing.
Council Member Enger said he did not support TIF for City Bella and finds it appalling. He
said he doesn't believe Mr. Conlan would sell to McDonald's if TIF was not received; 80% of the
project has been sold already.
Council Member Sandahl said she supports the project and finds it frustrating to have this
area looked at for years and now have an empty building. She said to look at Woodlake Centre
and Oaks on Pleasant to see what TIF can do. She said parking was an issue; ramped parking is
needed, but won't happen without TIF. She said TIF is exactly what Richfield needs to stay
vibrant, modern and progressive.
Council Member Enger said there appears to be a never ending list of projects using TIF.
He said the budget is being balanced on the backs of Richfield residents.
Mayor Kirsch said these projects need to be done to keep Richfield alive for future
generations.
Council Member Sandahl stated that she had reviewed the public versus private benefit for
the City Bella project and believes that the public benefits far out weigh the private benefits.
Mayor Kirsch requested the clerk to conduct a roll call vote.
Motion carried 3-2. (Rosenberg and Enger opposed.) This resolution appears as
Resolution No. 9198 in Resolution Book No. 74.
Council Member Ulrich said she reluctantly voted yes because the plan is so far along that
is not reasonable to stop it now.
Item #11
City Manager Orduno reported that State Transportation Commissioner Elwyn Tinklenberg
announced that one-third of the transportation projects is on hold. She said Richfield is directly
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June 11, 2002
impacted with the Lyndale Avenue bridge being delayed from 2004 to 2006. She said the
Crosstown reconstruction appears to be moving ahead.
Item #12
MIRosenberg, S/Enger that the followinq claims and pavrolls be approved:
RICHFIELD BANK & TRUST CO.
I NT Checks: 115376- 115389
HIC 116327 - 116603
PAYROLL 30295 - 30478
TOTAL
Motion carried 5-0.
No one addressed the City Council.
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Cheryl K umhOlz
Recording Secretary
$ 2,073,248.77
$ 955,512.55
$ 499,312.75
$ 3,528,074.07
5 p.m.
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