03-28-06 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
March 28, 2006
The meeting was called to order by Mayor Kirsch at 5:04 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Bill Kilian; Sue Sandahl; and Fred
Wroge.
Steven Devich, City Manager; Mike Eastling, Public Works Director; Bruce
Palmborg, Community Development Director; Brad Sveum, Fire Services
Director; Kristin Asher, Assistant City Engineer; Tom Foley, Transportation
Engineer; Randy Hughes, Operations Superintendent; and Cheryl Krumholz,
Recording Secretary.
Staff Present:
Item#1
Public Works Director Eastling stated at the March 28, 2006 City Council Worksession, City
staff will be seeking guidance from the Council on redevelopment options associated with the
proposed final layout for the Portland Avenue and 66th Street roundabout. The size of the
roundabout has been reduced from 180 feet in diameter to only 155 feet in diameter. This has
reduced the amount of right of way needed from the east side of the 6600 block of Portland Avenue
from the layout Council approved on October 25, 2005.
Tony Hepplemann, WSB & Associates Inc., reviewed and compared the differences between
the October 25, 2005 layout and the revised layout before the City Council tonight. He discussed the
bus pull-outs resulting from Metro Transit feedback.
Mr. Hepplemann stated there have been several meetings with Hennepin County and at the
last meeting, the County was pretty much in agreement that their issues regarding the roundabout
had been addressed. He added the plan does need to be submitted for the County's final approval.
Mr. Hepplemann continued that Mr. Tire is a partial take and there are no plans at this time for
the remaining space.
Mr. Hepplemann discussed the access to the properties adjacent to the roundabout.
Council Member Kilian said the properties may have better access with this roundabout
scenario than any other option for the intersection.
Council Member Kilian asked about the comparison in the plans related to partial takings.
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March 28, 2006
Mr. Hepplemann explained the impact on partial takes is reduced in the revised plan,
especially for the apartments and the mortuary. There is no change in the T & T square footage
taken but the operational space did change. He discussed the need to relocate the T & T fuel tanks
which is part of redevelopment costs.
Transportation Engineer Foley said the total take properties remain the same in the revised
plan.
Mr. Foley explained the rationale for the potential acquisition of four single-family homes on
the south end of the east side of the 6601 Portland Avenue for redevelopment; even with the
reduction in size of the roundabout. These homes are not needed for the transportation
improvement, however, preliminary discussions with Hennepin County indicate they may provide
funding if the four owners are willing sellers and to create a larger development site. It appears all
four properties are supportive of a buy-out.
Council Member Rosenberg asked about the County funding if the area were not developed.
She asked about the development being funded privately and replacing housing with housing and
common cause, affordability restrictions.
Mr. Foley explained the Hennepin County Development Grant Program provides more control
of the tax roles if they assist communities in funding because there is immediate payment in taxes.
They are not wanting tax increment financing used.
Public Works Director Eastling said the area is zoned residential.
Council Member Kilian stated the development needs to be taxable property and not removed
from the tax roles.
Public Works Director Eastling explained the potential Hennepin County funding and the
County's favorable reception of Richfield's request.
Community Development Director Palmborg stated there is a developer interested in placing
housing on this area. It is a City Council policy decision regarding pursuing the acquisition of these
four homes.
Council Member Sandahl said one of the four residents is upset because she was told her
property was a total take but then was told it was not. She had made arrangements based on a
taking and wants to be bought out. She said she gathered that the other three want out, too.
Council Member Sandahl said the acquisition of these four properties makes sense because it
creates a larger parcel for development and also results in fewer driveways on Portland Avenue.
Public Works Director Eastling reviewed the funding options, including the financial gap that
has always existed. Hennepin County Community Works funding fits the land use requirements and,
if the sellers are willing, the City will make a request for $1.2 million.
Public Works Director Eastling said that all four-property owners, at different times, have said
they're interested in selling.
Council Member Wroge expressed concern that acquisition costs will increase when the
properties know of the buy-out interest and the project will be too far along to stop.
Public Works Director Eastling said the Hennepin County funding is based on willing sellers.
Council Member Wroge asked about the development site being put out to more than one
developer.
Public Works Director Eastling said a market check indicates at least one developer considers
this site a financially feasible development.
Community Development Director Palmborg stated staff contacted a developer who has
worked with the City in the past and they expressed interest.
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March 28, 2006
Council Member Wroge said if the City gives up single family homes, he has strong feelings
about more than one development plan being considered and not locking into one.
Council Member Rosenberg asked about these four homes being the development ar~a only.
Transportation Engineer Foley clarified the entire block could be taken.
Council Member Wroge asked about the City paying for the moving of the T & T fuel tanks.
Public Works Director Eastling explained the T & T owner would be paid the property damage
cost but he could do with the money as he wished.
Council Member Wroge asked the owner of T & T, who was in the audience, to provide a
sense of where he's at on this matter but that he would not be held to it.
The T & T owner said he was just listening tonight but did say that if the fuel tanks are off the
corner, he would try to relocate them to another corner but he was unsure if the size was adequate.
Council Member Wroge said he would hope to know the answer to these questions before
proceeding.
Public Works Director Eastling explained the Right-of-Way Uniform Acquisition Act protects a
property owner's rights. The City cannot dictate how a property owner uses the money.
Council Member Wroge asked how it is determined how much the fuel tank moving would
cost.
Public Works Director Eastling explained a professional consultant determines the cost by
using a formula so there is fair treatment. .
Council Member Kilian stated he didn't see a need to know what property owners where going
to do with their property at this point in the project. The roundabout is what is being discussed now.
Council Member Wroge said the project now has the potential of being bigger.
City Manager Devich stated the area could be redeveloped with the homes irrespect of T & 1's
decision. At least one developer has expressed interest. If T & T is not there, the development area
would be larger.
Public Works Director Eastling added that a T & T partial take was determined to have the
business stay in operation.
City Manager Devich asked what happened to the potential Hennepin County funding if the
City decides not to take these four homes.
Public Works Director Eastling explained the Hennepin County funding is only available if the
City moves forward. The City and Hennepin County staff level discussion has occurred, no policy
decision has been made.
Council Member Kilian stated the Hennepin County funding should be taken to make for more
tax capacity in Richfield, especially if the four owners are ready to go. If the intersection was not a
roundabout, there would have been a total take and no discussion would be needed.
Mayor Kirsch said it makes sense to finish the area using the funding from Hennepin County.
It also provides an answer to these property owners so they no longer live in limbo.
Council Member Kilian asked about the design speed since the roundabout is smaller.
Mr. Hepplemann explained the speed has not decreased, entering the roundabout is at a
slower speed and exiting is at a higher speed. Therefore, traffic speed is slightly adjusted but the
speed was kept lower so pedestrians are safe. The roundabout compactness helps pedestrians and
provides for vehicle capacity.
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March 28, 2006
Mr. Hepplemann discussed the background of Mark Johnson, a designer experienced in
roundabouts.
Mr. Hepplemann discussed the swimming pool access and how it could be adjusted.
Item # 2
Public Works Director Eastling provided an update on the 120-day due diligence investigation
of the Longfellow loop properties related to the proposed new maintenance facility site. He said he
believed the City could move forward and finalize the purchase agreement with Mr. Irwin Ketrosen.
Public Works Director Eastling reviewed the due diligence process and the remaining
questions. The City Council could decide to stop and ask for an extension because of the questions.
Public Works Director Eastling added the project is planning to proceed unless the City
Council has reservations.
Council Member Sandahl said she agreed to move forward. Even if no garage is built on this
site, there are other City uses.
Mayor Kirsch agreed to move forward.
Council Member Kilian stated the City Council needs to take a negative action to not move
forward with this project.
The meeting was adjourned by unanimous consent at 6:03 p.m.
c~~m~kf
Recording Secretary
Date Approved: April 11. 2006