04-23-01 AgendaCITY OF RICHFIELD, MINNESOTA
MONDAY, APRIL 23, 2001
RICHFIELD CITY HALL
6700 PORTLAND AVENUE
REGULAR CITY COUNCIL MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
" ~NTRODI~CTORY-PROCEEDINGS ` `
Call to order
Pledge of Allegiance
Roll call
Approval of minutes of (1) Special City Council Study Session of April 9, 2001; (2)
Regular City Council Meeting of April 9, 2001; (3) Special City Council Closed
Executive Session of April 9, 2001; and (4) Special Concurrent City Council and HRA
Meeting on April 10, 2001
PRESENTATIONS
1. Presentation by I-494 Corridor Commission
2. Presentation of proclamation designating Small Business Week in Richfield, May 6-
12, 2001
3. Presentation of certificate of recognition from Minnesota Naturalists' Association to
Wood Lake Nature Center and Richfield School District
4. Presentation of proclamation designating. Earth Day, May 5, 2001
5. Presentation of proclamation designating .May as Arbor Month in Richfield
6. Presentation of proclamation designating National Drinking Water Week, May 6-12,
2001
7. Presentation of proclamation designating National Public Works Week, May 20-26,
2001
8. Council discussion items
Notes:
9. Opportunity for citizens to address the Council on .items not on the agenda
(Limited to 15 minutes) Speakers are asked to keep their comment period to
three minutes to allow sufficient time for others. Individuals who wish to
address the Council are requested to print their name and address on the
Speaker's Register for the record.
Notes:
AGENDA APPROVAL
10. Council approval of agenda
CONSENT CALENDAR
11. Consent Calendar contains several separate items which are acted upon by
the City Council in one motion.: Once the. Consent Calendar has been
approved, the individual. items and recommended actions have also been
approved. No further Council action is necessary. However, any Council
• Member may request that an item be removed from the Consent Calendar and
placed on the regular agenda for Council discussion and action. All items
listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of (1) resolution authorizing modification to tax
increment financing plan for Interchange-Lyndale-Nicollet Tax Increment
Financing District and (2) resolution authorizing decertification of parcels from
Interchange-Lyndale-Nicollet Tax Increment Financing District S.R. No. 98
B. Consideration of approval of resolution authorizing acquisition of 7039 Fifth
Avenue and first reading of transitory ordinance authorizing sale of property to
HRA for rehabilitation S.R. No. 99
C. Consideration of approval of award of contract to Earl F. Anderson for
replacement of playfeatures at Little Bob's Park, 6700 Harriet Avenue, in amount
of $42,998 S.R. No. 100
D. Consideration of approval of itinerant place of amusement, itinerant food and
temporary intoxicating liquor licenses for Don. Pablos, 980 West 78th Street, for
Cinco De Mayo Celebration on May 5, 2001 S.R. No. 101
E. Consideration of approval of itinerant food license for B&D's Convenience Plus,
813 East 66th Street, for Fourth of July Celebration S.R. No. 102
•
Notes:
RESOLUTION
12. Consideration of resolution establishing just compensation and authorizing
purchase of two single family homes at 6400 and 6408-18th Avenue
Staff Report No. 103
Notes:
m-~ ``ADMINISTRATIVE'REPORTS~AND"OTHER~USINESS
13. Consideration of award of contracts to Janesville Movers and Swift Movers for sale
and removal of homes and garages on 18th Avenue
Staff Report No. 104
Notes:
14. Consideration of professional services agreement for appraisal work for 66th Street
and Trunk Highway 77 Interchange Project
Staff Report No. 105
Notes:
AIRPORT BUSINESS
15. Airport status report
Notes:
COUNCIL CHOICE
16. Claims and payrolls
17. Adjournment
•
Auxiliary aids for individuals with disabilities are available upon request. Requests
must be made at least 96 hours in advance to the Administrative Services Director at
612-861-9702.
•
Admin. Reports &
AGENDA SECTION: Other Business
AGENDA ITEM # 14
REPORT # 105
STAFF REPORT
CITY COUNCIL MEETING
APRIL 23, 2001
REPORT PREPARED BY: KATIA MEDVETSKI,
REDEVELOPMENT SPECIALIST
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIIZECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
I,~~-~I
SIGNATURE
REVIEWED BY CITY MANAGER:
ITEM FOR COUNCIL CONSIDERATION:
Consideration of approval and execution of the attached Professional Services Agreement for
a raisal work for the 66th Street and- Trunk. Hi hwa 77 Interchan a Project.
I. RECOMMENDED ACTION:
By motion: Approve execution of the attached Professional Services
Agreement for appraisal work for the 66th Street and Trunk Highway
77 Interchange Project.
n
U
II. BACKGROUND
On March 12, 2001., the City Council approved a number of Professional Services
Agreements (Agreements) with appraisers for appraisal work for the 66th Street and
Trunk Highway 77 Interchange Project. The purpose of the new Agreements was to
upgrade the type of appraisal reports needed and update the valuation dates of the
reports for condemnation purposes: One property was inadvertently omitted from
.the list of required appraisals for the firm of BettendorF, Rohrer, Knoche, Wall Inc.
The attached agreement encumbers this appraisal. The fee for the new appraisal is
$3,000 to which the Metropolitan Airports Commission (MAC) has agreed to pay.
0423psa66
III. BASIS OF RECOMMENDATION
A. POLICY
• Entering into Professional Services Agreements with appraisers is a
standard operating procedure for this project.
B. CRITICAL ISSUES
• The updated appraisal report is needed for condemnation
proceedings.
• The condemnation hearing for this property is already scheduled.
C. FINANCIAL
• MAC continues to provide project funding through the Memorandum of
Understanding and the funding agreement which were approved by
MAC on February 22, 2000 and the City Council on February 28,
2000.
• MAC agrees to the additional fees for the appraisal work at hand.
D. LEGAL
• Legal counsel requires updated appraisal reports for condemnation
hearings as well as the services of appraisers to appear as expert
• witnesses for testimony.
• Legal counsel has previously reviewed and approved the form of the
Professional Services Agreement being used for this project..
E. TIMING
• Timing is of the essence for preparation of these appraisal reports as
condemnation hearings are already scheduled.
IV. ALTERNATIVE RECOMMENDATION~S~
• The City Council could delay the approval of the Agreement. However, staff
does not recommend any alternatives if legal counsel is to prepare for the
condemnation hearing in a timely manner.
~ V. ATTACHMENTS ~
Professional Services Agreement
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
• REAL. ESTATE APPRAISAL
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into by and between the City of Richfield, State of
Minnesota (whose address. is 6700 Portland Avenue South, Richfield, MN 55423, ATTN: Katia
Medvetski), hereinafter referred to as the "City" and Bettendorf Rohrer Knoche Wall, Inc.,
(whose address is 314 Spruce Tree Centre; 1600 University Avenue, St. Paul, MN 55104, ATTN:
Michael Bettendorf), hereinafter referred to as "Appraiser".
WITNESSETH:
WHEREAS, the City wishes to purchase the services of the Appraiser for the 66th
Street/T.H. 77 Interchange Project; and
WHEREAS, there are funds available for the purchase of these services.
NOW, THEREFORE,. in consideration of the mutual undertakings and agreements
hereinafter set forth,. the City and the Appraiser agree as follows:
1. TERMS AND COST OF THE AGREEMENT
The Appraiser agrees to furnish services to the City in accordance with the terms of this
Agreement. Appraiser shall complete Self-contained appraisal reports for the properties listed
on Exhibit A attached hereto no later than the date provided. on Exhibit A. The fee for the
appraisal reports shall be as listed on Exhibit A. The fee for subsequent services, including
attending meetings and hearings, if any, where Appraiser is required to attend or for preparation
of further reports addressing the impact of environmental contaminants on the value of the
property shall be at the rate of $150.00 per hour. The fee for testimony by the Appraiser shall
be at the rate of $175.00 per hour.
2. SERVICES TO BE PROVIDED
Appraisal reports prepared pursuant to this Agreement shall conform to recognized professional
appraisal standards, the Uniform Standards of Professional Appraisal Practice (USPAP) of the
Appraisal Foundation and .the Code of Ethics and Standards of Professional Appraisal Practice
of the Appraisal Institute. In addition, these appraisals shall conform to the Appraisal
Specifications (5-491.203) set forth in the State of Minnesota's Right of Way Manual.
Appropriate maps and plans for the Project will be furnished by the City.
3. PAYMENT FOR SERVICES
Payment for services shall be made directly to the Appraiser after completion of the services
upon the presentation of a claim in the manner provided by law governing the City's payment of
claims and/or invoices. Payment shall be made within 45 days from receipt of the invoice and
following certification by the Appraiser.
•
• 4. INDEPENDENT CONTRACTOR
The Appraiser shall select the means, method, and manner of performing the services herein.
Nothing is intended or should be construed in any manner as creating or establishing the
relationship of copartners between the parties .hereto or as constituting the Appraiser as the
agent, representative, or employee of the City for any purpose or in any manner whatsoever.
The Appraiser is to be and shall remain an independent contractor with respect to all services
performed under this Agreement. The Appraiser represents that it has or will secure at its own
expense all personnel required in performing services under this Agreement. Any and all
personnel of the Appraiser or other persons while engaged in the performance of any work or
services required by the Appraiser under this Agreement shall have no contractual relationship.
with the City, and shall not be considered employees of the City. Any and all claims that may
or might arise under the Unemployment Compensation Act or the Workers' Compensation Act
of the State of Minnesota on behalf of said personnel, arising out of employment or alleged
\ employment, including, without limitation, claims of discrimination against the Appraiser, its
officers, agents, contractors, or employees shall in no way be the responsibility of the City. The
Appraiser shall defend, indemnify, and hold the City, its officers, agents, and employees
harmless from any and all such claims irrespective of any determination of any pertinent
tribunal, agency, board, commission, or court. Such personnel or others persons shall neither
require nor be entitled to any compensation, rights, or benefits of any kind whatsoever from the
City, including, without limitation, tenure rights, medical and hospital care, sick and vacation
.leave, Workers' Compensation, Unemployment Insurance, disability, severance pay and PERA.
i 5. NONDISCRIMINATION
In accordance with the City's policies against discrimination, no person shall be excluded from
or denied the benefits of any service performed or contemplated under the terms of this
Agreement on the grounds of race, color, creed, religion, age, sex, disability, marital status,
public assistance status, ex-offender status, or national origin; and no person who is protected. by
applicable Federal or State laws against discrimination shall be otherwise subjected to
discrimination. If the Appraiser is not an individual or sole proprietorship: (1) it shall furnish
all information and reports which may be .required by the City's Affirmative Action Policy; and
(2) it shall adopt and comply with the City's Equal Employment Opportunity/Affirmative
Action Policies with regard to employment and contracting.
6. INDEMNITY AND INSURANCE
The Appraiser agrees to defend, indemnify, and hold the City, its officers, and employees
harmless from any liability claims, damages, costs, judgments, or expenses, including
reasonable attorney fees, resulting directly or indirectly from an act or omission (including
without limitation professional errors or omissions) of the Appraiser his agents, employees, or
assignees in performance of the services provided by this contract, and against all loss by reason
of the .failure of said Appraiser to fully perform in any respect, all obligations under this
Agreement.
•
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7. DATA PRIVACY
Appraiser agrees to abide by all applicable State and Federal laws and regulations concerning
the handling and disclosure of private and confidential information concerning individuals
and/or data including but not limited to information made non-public by such laws or
regulations. Appraiser shall maintain all appraisal reports submitted to him on behalf of City as
confidential until released by counsel for the City.
8. RECORDS -AVAILABILITY
The Appraiser agrees that the City, the State Auditor, Federal personnel or any of their duly
authorized representatives at any time during normal business hours and as often as they may
reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and
transcribe any books, documents, papers, records, etc., which are pertinent to the accounting
practices and procedures of the Appraiser and involve transactions relating to this Agreement.
Records shall be retained for three years from date of final payment of Federal funds to the State
with respect to the Project.
9. NON-ASSIGNMENT
The Appraiser shall not assign, subcontract, transfer, or pledge this contract and/or the services
to be performed hereunder, whether in whole or in part, without the prior written consent of the
City.
•
10. MERGER AND MODIFICATION
a. It is understood and agreed that the entire Agreement between the parties is contained herein
and thatthis Agreement supersedes all oral agreements and negotiations between the parties
relating to the subject matter hereof. All items referred to in this Agreement are
incorporated or attached and are deemed to be part of this Agreement.
b. Any material alterations, variations, modifications, or waivers of provisions of this
Agreement shall only be valid when they have been reduced to writing as an amendment to
this Agreement signed by the parties hereto.
11. DEFAULT AND .CANCELLATION
a. If the Appraiser fails to perform any of the provisions of this Agreement or so fails to
administer the work as to endanger the performance of the Agreement, this shall constitute a
default. Unless the Appraiser's default is excused, upon written notice to the Appraiser the.
City may immediately cancel the Agreement in its entirety.
b. The City's failure to insist upon strict performance of any provision or to exercise any right
under this Agreement shall not be deemed a relinquishment or waiver of the same, unless
consented to in writing. Any such consent shall apply only to the specific circumstances
• described in the writing granting the consent and in no event shall constitute a general
waiver or relinquishment throughout the entire term of the Agreement unless specifically so
stated.
3
c. This Agreement may be cancelled with or without cause by either party upon ten (10) days
• written notice to the other party.
12. CONTRACT ADMINISTRATION
In order to coordinate the services of the Appraiser with the activities of the City so as to
accomplish the purposes of this contract, Katia Medvetski, Redevelopment Specialist, shall
manage this Agreement on behalf of the City and serve as liaison between the City and the
Appraiser.
13. RECYCLING PROGRAM
The City encourages the Appraiser to develop and implement an office paper and newsprint
recycling program.
14. NOTICES
Any notice or demand which must be given or made by a party hereto- under the terms of this
Agreement or any statute or ordinance shall be in writing, and shall be sent registered or
certified mail to the other party at the address stated in the opening paragraph of this Agreement.
Approved as to legality, form and execution.
• KENNEDY & GRAVEN, CHARTERED
City Attorney
Date:
CITY OF RICHFIELD
STATE OF MINNESOTA APPRAISER
City Manager
4
STATE OF MINNESOTA )
• )SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2001, by Samantha Orduno,-the City Manager, of the City of Richfield, Minnesota, a municipal
corporation under the laws of Minnesota, on behalf of the City.
Signature of Person Taking Acknowledgment
Notarial Stamp Or Seal (Or Other Title Or Rank)
STATE OF MINNESOTA )
)SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2001, by .Michael J. Bettendorf, the President of Bettendorf Rohrer
Knoche Wall, Inc., a corporation under the laws of Minnesota, on behalf of the corporation.
•
Signature of Person Taking Acknowledgment
Notarial Stamp Or Seal (Or Other Title Or Rank)
•
5
Exhibit A
Description of Properties to be Appraised and Appraisal Fees
City Parcel Property Address PID Number Fee Due Date
1 6301 Cedar Avenue South 25-028-24-22-0001 $3,000.00 5/1/O1
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C7
J STAFF REPORT
AGENDA SECTION:
AGENDA ITEM #
REPORT #
CITY COUNCIL MEETING
APRIL 23, 2001
Admin. Reports ~
Other Business.
13
104.
REPORT PREPARED BY:
NAME, TITLE
REPORT PRESENTER:
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY CITY MANAGER:
PERRY THORVIG, COMMUNITY
DEVELOPMENT SPECIALIST
BRUCE PALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
~~~
SIGNATURE
11~~~
ITEM FOR COUNCIL CONSIDERATION:
Award to Janesville Movers and Swift Movers contracts for sale and removal of homes and
ara es on 18th Avenue.
L RECOMMENDED ACTION:
By Motion: Award contracts for sale and removal of homes and
garages on 18th Avenue to Janesville Movers and Swift Movers.
•
II. BACKGROUND
In May of 2000, the Minnesota State Legislature approved a grant of $5 million to
purchase homes within two blocks of T.H. 77 that are impacted by low frequency
noise levels. So far, twenty-three homes have been purchased. The Legislature's
grant required that the City of Richfield attempt to move as many of these houses
as possible in order to preserve resources. Moving specifications were developed
and movers were solicited. Bid specifications went out to approximately 70
Minnesota and western Wisconsin moving companies. Three companies presented
bids.
Swift Movers of Big Lake, Minnesota offered the highest bids for one house and two
.garages totaling $550. Janesville Movers of Janesville, Minnesota offered the
0423movingbids
highest bids on thirteen houses totaling $111.,168. Otting House Movers were the
lowest bidders on all properties.
No bids were received for the houses without basements which number seven and
two other houses were deemed not desirable for moving.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City wishes to comply with the requirements of the grant
legislation and attempt to move as many houses as possible.
B. CRITICAL ISSUES
• The bidders must be able to conduct the moving task in a satisfactory
way. The references of the two high bidders were checked. Both of
the movers were found to have good references from public officials
and private parties and were judged. able to carry out the move. The
bidders meet all other requirements including proof of insurance.
C. FINANCIAL
• The moving of the homes will generate project income to conduct .
maintenance activities on the site while the land is awaiting future
• redevelopment..
D. LEGAL
• N/A
IV. ALTERNATNE RECOMMENDATION~S~
• Do not award the contracts to these two high bidders and reject all bids.
• Postpone the approval of the bids until a later time.
V. ATTACHMENTS
• Summary of bid responses.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
•
~JMMARY OF BID RESPONSES & HIGHEST BIDDERS
8Tx AVENUE MITIGATION AREA
Bid Opening: 10:00 a.m., Thursday March 29, 2001
[ Y Denotes highest bid for structure ]
VENDERS
Swift Movers' Otting Movers= Janesville Movers'
;~ Address Garage House Total Garage House Total Garage House Total
1 6315 -18'" $0.00 $3,050.00 $3,050.00 $0.00 $2,010.00 $2,010.00 $0.00 Y $10,200.00 $10,200.00
3 6327 - 18'" 0.00 550.00 550.00 0.00 2,010.00 2,010.00 0.00 Y 5,000.00 5,000.00
4 6333 - 18'" 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Y 1,500.00 1,500.00
13 6439 - 18'" Y 10(1.00 4,000.00 4,100.00 0.00 1,280.00 1,280.00 0.00 Y 10,500.00 10,500.00
14 6445 - 18'" 0.00 1,150.00 1,150.00 0.00 225.00 225.00 0.00 Y 6,500.00 6,500.00
15 6509 - 18s' 0.00 3,500.00 3,500.00 0.00 225.00 225.00 0.00 Y 10,600.00 10,600.00
16 6515 - 18s' Y 100.00 3,700.00 3,800.00 0.00 225.00 225.00 0.00 Y 12,000.00 12,000.00
17 6521 - 18'" 0.00 Y 350.00 350.00 0.00 25.00 25.00 0.00 0.00 0.00
18 6527 - 18'" 0.00 3,600.00 3,600.00 0.00 1,510.00 1,510.00 0.00 Y 15,068.00 15,068.00
19 6533 - 18'" 0.00 2,300.00 2,300.00 0.00 1,050.00 1,050.00 0.00 Y 13,100.00 13,100.00
20 6314 -18'" 0.00 3,800.00 3,800.00 0.00 1,650.00 1,650.00 0.00 Y 10,200.00 10,200.00
21 6320 - 18"' 0.00 2,500.00 2,500.00 0.00 1,650.00 1,650.00 0.00 Y 5,500.00 5,500.00
22 6326 - 18'" 0.00 600.00 600.00 0.00 1,200.00 1,200.00 0.00 Y 4,500.00 4,500.00
23 6332- 18'" 0.00 3,300.00 3,300.00 0.00 1,200.00 .1,200.00 0.00 Y 6,500.00 6,500.00
TOTALS $200.00 $32,400.00 $32,600.00 $0.00 $14,260.00 $14,260.00 $0.00 $111,168.00 $111,168.00
Prepared for Richfield Community Development Department by DED, i April 2001.
1 Source: Bid Proposal Form, dated 28 March 2001, of Swig House Movers. 16242 - 149'" Street, Big Lake, MN 55309.
2 Source: Bid Proposal Form, dated 28 March 2001, of Otting House Movers,-11640 - 27$" Street East, Lakeville, MN 55044.
3 Source: Bid Proposal Form, Dated 27 March 2001, of Janesville House Movers, 414 South Main, Janesville, MN 56048.
AGENDA SECTION: Resolution
AGENDA ITEM # 12
REPORT # 103
•
J STAFF REPORT
CITY COUNCIL MEETING
•
APRIL 23, 2001
REPORT PREPARED BY: PERRY THORVIG,
COMMUNITY DEVELOPMENT SPECIALIST
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
SIGNATURE
REVIEWED BY CITY MANAGER: ~ 1
ITEM FOR COITNCIL CONSIDERATION:
Consideration of a resolution establishing just compensation and authorizing the purchase of
two sin le famil homes located at 6400 and 6408-18th Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve the. attached resolution establishing just
compensation and authorizing the purchase of 6400 and 6408-18th
Avenue.
II. BACKGROUND
The 2000 Minnesota State Legislature appropriated $5 million for the City of
Richfield to purchase residential properties (including all related costs) in the first
two blocks west of TH 77. The purpose of these purchases is to remove these
homes from the area of extreme low frequency noise that will result from the
opening of the new north-south runway under construction at the airport.
Twenty-three homes have been purchased to date (see attached map). Additional
purchase funds remain for one or two homes. The owners of 6338 and 6344 18th
Avenue indicated a lack of interest in selling at this time..Thus the proposal to
purchase 6400 and 6408 18th Avenue. The required appraisal work has been
completed on these two properties. Staff is recommending just compensation in the
following amounts:
0423justcomp
•
Address Just Com ensation Amount
6400 18th Avenue $145,000
640818th Avenue $157,000
In addition to the above, the properly owners may also be eligible for relocation
benefits. The relocation benefits will be calculated separately once an offer is made
to the property owner in accordance with the Uniform Relocation Act.
Bids for the sale and removal of these houses would be sought once they become
vacant.
III. BASIS OF RECOMMENDATION
A. POLICY
• The City Council has identified these properties for purchase for the
project.
• The properties are within the 87dB contour.
• Uniform acquisition procedures are being followed.
B. CRITICAL ISSUES
• An offer will be made to the homeowner at 6400 18th Avenue upon
the Council's approval by representatives of Conworth Inc. on behalf
of the City. The offer to the second home at 6408 18th Avenue will be
made only after a bid is received on demolition costs for the 18th
Avenue properties and it is certain that there are sufficient funds to
acquire the property. Demolition work includes nine houses for which
no bids were received (seven houses lacked basements and two
others were not suitable for moving) for sale and moving, footing, and
foundation removal on all properties as well as back filling.
C. FINANCIAL
• The. Minnesota Department of Trade and Economic Development
(DYED) has reviewed the City of Richfield's application and is
providing all the funding for the purchase of the buildings.
D. LEGAL
• N/A
~ IV. ALTERNATNE RECOMMENDATION(S). ~
• ue~ay approval of dust compensation.
• Do not approve just compensation and property acquisition.
V. ATTACHMENTS
• The resolution establishing just compensation and authorizing the purchase
of the. two properties.
• Map
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
•
RESOLUTION NO.
RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING
PURCHASE OF REAL PROPERTY LOCATED AT
6400 AND 6408 -18TH AVENUE
WHEREAS, the 2000 Minnesota State Legislature authorized the City of Richfield
(City) to acquire residential property within two. blocks of Trunk Highway 77 and within the
87dB; and
WHEREAS, within the aforenoted area the following real property is identified for
purchase:
Lots 15 and 16, Block 5 Iverson's Second Addition, Hennepin County, Minnesota
Together with all abutting streets and alleys, vacated or to be vacated, and all
easements, gaps,. and overlaps appurtenant thereto; and
WHEREAS, Department of Trade and Economic Development (DYED) funds in the
amount of $5 million are available to the City for the purchase of the real property and
related expenses; and
WHEREAS, the City has accepted a plan for the purchase of properties along 18th
Avenue S. north of 66th Street; and
WHEREAS, the City is authorized by Minnesota Statutes to acquire real property
within its corporate boundaries; and
WHEREAS, the City has caused appraisals for the subject properties to be made by
qualified independent professional appraisers to determine fair market value of real estate;
and
WHEREAS, a qualified review appraiser has certified the appraisal reports as being
in conformity with .appraisal standards; and
WHEREAS, those values are as follows:
Pro a Address Just Com ensation Amount
640018 Avenue $145,000
640818 Avenue $157,000
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield,
Minnesota as follows:
1. That the just compensation amounts in the table above are approved.
2. That performance on the offers to purchase and related expenses is subject to
availability of DYED funds including a deduct for the cost of site clearance expenses.
3. That the City's consultant is authorized to present offers of said amount to the
respective property owners.
Adopted by the City Council of the City of Richfield, Minnesota this 23rd-day of April,
2001.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
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~~ APRIL 23
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AGENDA SECTION:
AGENDA ITEM #
REPORT #
~~ STAFF REPORT
CITY COUNCIL MEETING
l~
APRIL 23, 2001
Consent
11E
102
BETSY CHRISTENSEN, ADMINISTRATIVE
REPORT PREPARED BY: SUPPORT SERVICES MANAGER
NAME, TITLE
REPORT PRESENTER: DAN SCOTT, DIRECTOR OF PUBLIC SAFETY
NAME, T/TLE
DEPARTMENT DIRECTOR REVIEW: ®~ n ~~~
'Ct SIGNATURE
REVIEWED BY CITY MANAGER: c~
~ ~~~,
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a request for an itinerant food license for July 4, 2001 for B&D's Convenience
Plus store, 813 East 66th Street.
RECOMMENDED ACTION:
By Motion: Approve an itinerant food license for B&D's Convenience
Plus store, 813 East 66th Street, that would allow them to serve hot
dogs, chips and soda for the Fourth of July celebration.
II. BACKGROUND
On March 22, 2001, B&D's Convenience Plus submitted a request for an itinerant
food license for July 4, 2001. The licensing fees have been received.
They plan on serving hot dogs, chips and soda in connection with the Richfield
Fourth of July celebration.
6&D's Convenience Plus has contacted food sanitarians from the City of
Bloomington to ensure that proper food handling practices are followed. They will
work with Bloomington sanitarians and follow their recommendations for safe and
wholesome food handling.
0423 B&D Itinerant Food License
The City has previously issued this license in conjunction with the Fourth of July
celebration.
III. BASIS OF RECOMMENDATION
A. POLICY
• The applicant has complied with the City codes pertaining to this
license.
B. CRITICAL ISSUES
• 6&D Convenience Plus will not be allowed to serve food during the
Fourth of July celebration if the request is denied.
C. FINANCIAL
• N/A
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S~
• The Council could decide to deny the request; however, the Public Safety
Department has not found any basis for a denial
V. ATTACHMENTS
• N/A
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• B&D's staff
•
AGENDA SECTION: Consent
AGENDA ITEM # 11D
REPORT # lU 1
J STAFF REPORT
CITY COUNCIL MEETING
C
APIUL 23, 2001
BETSY CxRISTENSEN, ADMINISTRATIVE
REPORT PREPARED BY: SUPPORT SERVICES MANAGER
NAME, TITLE
REPORT PRESENTER: DAN SCOTT, DIRECTOR OF PUBLIC SAFETY
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: ~ ~~`~
~~ ~ L
S/GNATURE
REVIEWED BY CITY MANAGER: ~ '~ ~~~
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a request for itinerant place of amusement, itinerant food, and temporary
intoxicating liquor licenses for Don Pablos, 980 West 78th Street, for their Cinco De Mayo
Celebration to be held on Saturda , Ma 5, 2001.
I. RECOMMENDED ACTION:
By Motion: Approve itinerant place of amusement, itinerant food, and
temporary intoxicating liquor licenses for Don Pablos for their Cinco
De Mavo Celebration to take lace on Frida , Ma 5, 2001.
II. BACKGROUND
On March 5, 2001, Don Pablos submitted applications for an itinerant place of
amusement, itinerant food, and temporary intoxicating liquor licenses for their Cinco
De Mayo event. The event will take place from 11 a.m. until 1 a.m. All fees have
been received.
A detailed activity plan is currently on file. They are proposing to erect a 20' X 80'
tent in which to service additional patrons. They will be serving a selection of
appetizers as well as alcoholic beverages outdoors. There will also be a disc jockey
playing music throughout the event.
0423Don Pablos Cinco De Mayo
Public Health, Fire and Police staff issued a detailed list of event regulations and
stipulations to Don Pablos. They have. assured staff that they will comply with all
recommendations.
A certificate of liquor liability to cover the exterior of the establishment has been
received showing American MFRS Mutual Insurance Company affording the
coverage.
Don Pablos has contacted food sanitarians from the City of Bloomington to ensure
that proper food handling practices are followed. They will work with Bloomington
sanitarians and follow their recommendations for safe and wholesome food
handling.
The City has previously issued licenses for Don Pablo's Cinco De Mayo event.
There have been no problems in connection with Don Pablo's Cinco De Mayo event
in the past.
III. BASIS OF RECOMMENDATION
A. POLICY
• The applicant has complied with all of the provisions of the City
application process.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• N/A
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
• Deny the request for itinerant place of amusement, itinerant food, and
temporary intoxicating liquor licenses.. This. would mean that they would not
be able to conduct activities on Saturday, May 5, 2001.
V. ATTACHMENTS
• N/A
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Marty Thurnblad, General Manager of Don Pablos
AGENDA SECTION:
AGENDA ITEM #
REPORT #
•
STAFF REPORT
CONSENT CALENDAR
CITY COUNCIL MEETING
APRIL 23, 2001
REPORT PREPARED BY: JIM TOPITZHOFER, RECREATION SERVICES
DIRECTOR
NAME, TITLE
REPORT PRESENTER: JIM TOPITZHOFER, RECREATION- SERVICES
DIRECTOR
NAME, TITLE
DEPARTMENT.DIRECTOR REVIEW.:
SIGNATURE
REVIEWED BY CITY MANAGER: ~ ~ ~ ®,
~ il.~
ITEM FOR COUNCIL CONSIDERATION,:
Consideration of the award of contract for the Little Bob's Park Playfeature Replacement
Pro~ect.
I. RECOMMENDED ACTION:
By Motion: Award the attached contract to Earl F. Anderson, Inc.
(EFA) in the amount of $42,998 for the replacement of playfeatures at
Little Bob's Park. 6700 Harriet Avenue.
II. BACKGROUND
As part of the City's playfeature replacement cycle, staff has planned to replace the
playfeatures at Little Bob's Park, 6700 Harriet Avenue. Staff wrote a Request for
Proposals (RFP) with preferences gathered from comments. from a neighborhood
meeting and suggestions from the Community Services Commission {CSC). On March
29, the Little Bob's Park Playfeature Selection Committee met to evaluate the proposals
for the replacement of playfeatures at Little Bob's Park. The committee included the
following people:
• MaryKaye Champa Recreation Services
• John Evans Recreation Services
• Rick Beane Public Works
• Mark Inserra .Public Works
• Bob Dietl CSC Member/Little Bob's neighborhood business owner
0423 little bobs
Playfeature proposals were submitted by four playfeature vendors: Earl F. Anderson,
Inc. (EFA), Midwest Playscapes, Miracle, and Flanagan Sales. The selection
committee used objective criteria outlined in the project RFP, which was approved by
the CSC at their regular March meeting. Based on this criteria, the committee chose
the proposal offered by Earl. F. Anderson (EFA). The contract amount is $42,998.00.
III. BASIS OF RECOMMENDATION
A. POLICY
• The playfeature options were determined through a neighborhood
meeting, discussion with the CSC, maintenance considerations and
staff recommendations.
• At their April 10 regular meeting, the CSC voted unanimously to
recommend approval of the award of contract to Earl F. Anderson, Inc.
B. CRITICAL ISSUES
• As provided in the RFP, the installation of the equipment will begin no
earlier than May 15, 2001 and be completed by July 1, 2001, pending
weather conditions.
• Playfeatures in Richfield are replaced in an effort to remain compliant
with up-to-date safety and ADA requirements.
C. FINANCIAL
• The Little Bob's Playfeature Replacement project was approved as
part of the 2001 revised capital improvement budget.
D. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not award the contract to EFA for the Little Bob's Park Playfeature
Replacement.
V. ATTACHMENTS
• Proposed contract between the City and EFA
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• None
c:
CITY OF RICHFIELD
HENNEPIN COUNTY, MINNESOTA
• CONTRACT FOR MUNICIPAL CONSTRUCTION
City Project No. 438-40-741
Contract No.
Class of Work: General Recreation Site Improvements
THIS AGREEMENT made this April 23, 2001, between the City of Richfield, Minnesota,
acting by and through its Mayor and City Manager, herein called the "City," and Earl F.
Anderson, Inc., herein called the "Contractor," witnesseth; that the Contractor, in
consideration of the payment of the contract price therefor, amounting substantially to
Forty-two thousand, nine-hundred, ninety-eight and 0/100 Dollars ($42,998.00), agrees
to furnish all materials (except such as are specified to be furnished by the City, if any),
all necessary tools and: equipment, and to do and perform all the necessary work and
labor for the full completion of city projects as follows:
Little Bob's Park Play Equipment Installation and Related Site Improvements
as detailed in the approved Request for Proposal and the proposal submitted by
Contractor, for the price and compensation set forth and specified in the Request for
Proposal, which is hereto attached and hereby made a part of this Agreement, all in
accordance with the plans, specifications and special provisions therefor on file in the
office of the Recreation Services Department, City of Richfield, and hereby made a part
of this Agreement. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.
The Contractor agrees that the work shall be done and performed in the best and most
workmanlike manner; that all materials and labor shall be in strict conformity in every
respect with. the plans, specifications and special provisions for the improvement, shall
be subject to inspection and approval of the Richfield Recreation Services Director and
in case any material or labor supplied shall be rejected by the Richfield Recreation
Services Director as defective or unsuitable, then such rejected material shall be
removed and replaced with approved material and the rejected labor shall be done
anew to the satisfaction and approval of the Richfield Recreation Services Director and
at the cost and expense of the Contractor.
It is distinctly understood and agreed that no claims for extra work done or materials
furnished by the Contractor will be allowed by the City except as provided herein, nor
shall the Contractor do any work or furnish any materials not covered by the plans,
specifications, special provisions and this Agreement unless such work is first ordered
in writing as provided in the specifications.
Any such work or materials which may be done or furnished by the contractor without
such written order first being given shall be at his own risk, cost and expense and he
• hereby agrees that without such written order he will make no claim for compensation
for work or materials so done or furnished.
It is further agreed, anything to the contrary notwithstanding, that the City of Richfield,
City Council and its agents or employees shall not be personally liable or responsible in
any manner to the Contractor, Subcontractors, materialmen, laborers or to any person
• or persons whomsoever for any claim, demand, damages, actions or causes of action of
any kind or character arising out of or by reason of the execution of this Agreement or
the performance and completion of the work and improvement provided herein.
Dated at Richfield, Minnesota, this
Signatures for -Earl F. Anderson, Inc. ("Contractor")
By
Its
Signatures for the City of Richfield, Minnesota ("City")
By
Its Mayor
By
Its City Manager.
•
•
STAFF REPORT
AGENDA SECTION: Consent
AGENDA ITEM # 11B
REPORT # 99
CITY COUNCIL MEETING
•
•
APRIL 23, 2001
JOHN OLINGER,
REPORT PREPARED BY: COMMUNITY DEVELOPMENT SPECIALIST
NAME; TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
~/C~
SIGNATURE
REVIEWED BY CITY MANAGER: ~ ~ ~~
ITEM FOR COUNCIL CONSIDERATION:
Consideration of a resolution authorizing acquisition of 7039 Fifth Avenue and first reading of a
transitory ordinance authorizing the sale of the property to the Housing and Redevelopment
Authority for rehabilitation.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution authorizing the purchase
of real property located at 7039 Fifth Avenue, conduct the first
reading of the attached .transitory ordinance authorizing the sale of
the property to the Housing and Redevelopment Authority and
schedule a public hearing and first reading for May 29, 2001.
II. BACKGROUND I
The Housing and Redevelopment Authority (HRA) sponsors the New Home Program.
This program identifies substandard structures in the City, works with voluntary sellers
to purchase the property and then contracts with Hennepin Technical College (HTC) to
construct a home on the site as part of the students'. training.
Homes developed under this program are sold to families meeting the U.S.
Department of Housing and Urban Development (HUD) low income definition of
being below 80 percent of the median income.
0423-7039Fifth
The structure at 7039 Fifth Avenue is a 73-year old, 600-sq. ft. one-story, with a
detached garage. The owner was ordered to sell as part of a settlement agreement
• (not involving the City or HRA). The lot is 50' x 144'.
The purchase price of the property has been determined to be $87,000 based on an
independent appraisal report. The HRA has available Community Development
Block Grant (CDBG) money; no City general funds will be used.
III. BASIS OF RECOMMENDATION
A. POLICY
• The property owner is a willing seller who has been ordered to sell the
property as a part of a private party settlement agreement. (Not
involving the City or HRA.)
• To fully utilize federal dollars, the City must acquire the property and
transfer the property to the HRA. City owned property requires the
adoption of a Transitory Ordinance to effectuate a sale to the HRA.
• The acquisition and disposition of the property are in conformity with
.the Comprehensive Plana
B. CRITICAL ISSUES
• If the City does not acquire this property it would need to locate
• another property to make available for the fall Hennepin Technical
College Class.
C. FINANCIAL
• Funds have been budgeted for acquisition and reconstruction from
federal CDBG funds and proceeds of sale to the end buyer. The
CDBG funds must be utilized for these purposes, and the site must be
used to provide a new home for an income-qualified buyer.
D. LEGAL
• The sale from the City to the HRA will require a public hearing and
second reading of the Transitory Ordinance scheduled for May 29,
2001.
IV. ALTERNATIVE RECOMMENDATION~S~
• Do not acquire the property at 7039 Fifth Avenue and do not approve the
Transitory Ordinance.
V. ATTACFIMENTS
• Resolution
• Transitory Ordinance
•
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
RESOLUTION NO.
RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY
• LOCATED AT 7039 FIFTH AVENUE SOUTH
WHEREAS, The City of Richfield, Minnesota (the "City") has considered the
purchase of 7039 Fifth Avenue South with CDBG funds on behalf of the Richfield Housing
and Redevelopment Authority (HRA) for $87,000. The property is further described as:
Lots 30 & 31, Block 1, Savage's 1st Addition; and
WHEREAS, the City proposes to sell real property to the Housing and
Redevelopment Authority (the "HRA") for $1.00 in furtherance of HRA housing programs;
and
WHEREAS, pursuant to the City Charter, Section 13.04, the City is authorized to
sell its property following a public hearing for which notice was published not less then ten
days before such hearing.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Richfield, Minnesota as follows:
1. The City Manager and Mayor are authorized to take those actions necessary to
purchase 7039 Fifth Avenue for $87,000.
2. The City shall hold a public hearing and second reading of the ordinance
• regarding the sale of the land to the HRA on Tuesday, May 29, 2001.
3. The City Clerk is directed to publish notice of such hearing in the official
newspaper of the City and. post notice of said hearing.
Adopted by the City Council of the City of Richfield, Minnesota this 23rd day of April
2001.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
•
TRANSITORY ORDINANCE NO.
AN ORDINANCE AUTHORIZING AND PROVIDING 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 (7039 FIFTH AVENUE SOUTH)
THE CITY OF RICHFIELD DOES ORDAIN:
Section 1.
The following. described real property located in the City of Richfield, County of
Hennepin, State of Minnesota, is hereby authorized to be sold, transferred or
otherwise disposed of and conveyed by the City as herein provided:
Lot 30 & 31, Block 1, Savage's Addition, Hennepin County, Minnesota, and
having the street address of 7039 Fifth Avenue South, Richfield, Minnesota
Section 2.
The Mayor and City Manager are hereby authorized to take all action as is required
to sell, transfer, or otherwise dispose of and convey the real property described in
the foregoing Section 1, including, by way of illustration and not limitation, the
execution of all documents, purchase agreements, deeds or conveyance, and other
instruments connected with such sale, transfer or disposition and conveyance.
• Passed this day of 2001 by the Richfield City Council.
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
•
AGENDA SECTION:
AGENDA ITEM #
REPORT #
J STAFF REPORT
CITY COUNCIL MEETING
•
APRIL 23, 2001
Consent.
11A
98
REPORT PREPARED BY: I'CATIA MEDVETSKI,
REDEVELOPMENT SPECIALIST
NAME, TITLE
REPORT PRESENTER: BRUCE PALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
,~
SIGNATURE
REVIEWED BY CITY MANAGER: ~ ~,
~t--
ITEM FOR COUNCIL CONSIDERATION:.
Consideration of the attached (1.) resolution authorizing the Modification to the Tax Increment
Financing Plan for the Interchange-Lyndale-Nicollet (ILN) Tax Increment Financing District;
and (2.) resolution authorizing the decertification of parcels from the Interchange-Lyndale-
Nicollet IILM Tax Increment Financing District
I. RECOMMENDED ACTION:
By Motion: Approve the attached (1.) resolution authorizing the
Modification to the Tax Increment Financing Plan for the Interchange-
Lyndale-Nicollet (ILN) Tax Increment Financing District; and (2.)
resolution authorizing the decertification of parcels from the
Interchange-Lvndale-Nicollet (ILN) Tax Increment Financing District
• 04121LNTif
• II. BACKGROUND
The attached resolutions were approved by the HRA on April 16, 2001 and are
presented to the City Council for their approval.
The 2001 Legislature has before it a bill that places certain restrictions upon tax
increment financing districts that were certified before May 1, 1990. One of the
key provisions of the bill is to not allow the modification of tax increment financing
plans after April 30, 2001. The only tax. increment financing district that would be
impacted by this legislation is the Interstate-Lyndale-Nicollet (ILN) tax increment
financing district (TIF, District) -that was certified by the County on December 5,
1985. The ILN TIF District would be negatively impacted by this legislation if
passed because the Richfield Housing and Redevelopment Authority (HRA)
would be unable to undertake any future TIF assisted activities (for parcels
located in the. ILN TIF District that have. not been "treated" to date, primarily the
area north of 76th Street along Lyndale Avenue (11 parcels). (Staff has explored
renovation and possible parking solutions for the west side of Lyndale Avenue
and redevelopment for the east side of Lyndale which would accommodate a
new Daily Queen.) Also, the HRA would not be able to implement budget.
revisions in .order to bring it into compliance with the State Auditor's TIF reporting
forms and opinions rendered by the auditors. In order to better plan for the future
should this. legislation be enacted, a modification to the ILN TIF District. is being:
proposed that:
• .Brings the TIF Plan and TIF. District into compliance with the various
rulings- by the State Auditor and changes in the law;
• .Updates the budget line items, including providing a composite total of all
bonding authority;.
• Memorializes past actions taken for accounting transactions;
• Provides authorization for all interfund loans; and
• Decertifies 11 parcels.
In accordance with legal counsel opinion, a public hearing is not required for this
modification because the amount of bonded indebtedness did not increase and
the value of the ILN TIF District parcels proposed for decertified have not
declined below the original, certified value. (Also see paragraph "D. Legal" in this
staff report.)
III. BASIS OF RECOMMENDATION
A. POLICY
• The HRA and the City Council undertake TIF Plan modifications as
deemed necessary to carry out their charge for redevelopment in
• 04121LNTif
• accordance with prudent planning measures, state law, and rulings of
the Office of the State Auditor.
B. CRITICAL ISSUES
• A bill currently under proposal at the legislature could prohibit future.
modifications to the ILN TIF District, limit the use of tax increment
revenue produced by the district, and hamper the HRA's ability to
.bring the district's accounting transactions into compliance with the.
State Auditor's rulings.
C. FINANCIAL
• The total ILN TIF Plan Sources and Uses budget balances to
$102,637,750..
• Bonding authority available to the district cannot exceed
$14,650,000.
• Line items have been modified to reflect interFund loan transfers
and accounting transactions taken.
D. LEGAL
• Legal counsel has reviewed the modified ILN TIF Plan and
approving resolutions attached hereto and is of the opinion that the
proposed modification to the ILN TIF Plan. does not require: (a.)
notification to the County Board member representing the affected
area; (b.) providing an opportunity to the members of the affected
county board. to review the fiscal and economic implications of the
proposed modification to the TIF Plan 30 days from the transmittal
of the fiscal implications or until the County Board has presented
written comment on the proposal, whichever is less; (c.) review by
the Planning Commission as to the conformance of the modified
TIF Plan to the Comprehensive Plan of the City; (d.) a legal notice
for public hearing; and (e.) a public hearing.
• The HRA approved proposed modification to the ILN TIF Plan on
April 16, 2001.
• Following approval by the City Council, the modification to the ILN
TIF Plan will be filed with the County Auditor and State Revenue
Department.
IV. ALTERNATIVE RECOMMENDATION~S~
• Delaying action or not taking action on the proposed modification to the
ILN TIF Plan could jeopardize future redevelopment activities in the ILN
TIF District and not allow compliance in budget authority.
• 04121LNTif
• V. ATTACHIVIENTS
• Resolution authorizing the modifications to the Tax Increment Financing
Plan for the Interchange-Lyndale-Nicollet (ILN) Tax Increment Financing
District.
• Resolution authorizing the decertification of parcels from the Interchange-
. Lyndale-Nicollet (ILN) Tax Increment Financing District..
• Modification to the Tax Increment Financing Plan for the ILN TIF District..
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
• Sid Inman, Ehlers & Associates, Inc.
• 04121 LNTif
• RESOLUTION NO.
RESOLUTION AUTHORIZING THE MODIFICATION TO THE
TAX INCREMENT FINANCING PLAN FOR THE
INTERCHANGE-LYNDALE-NICOLLET (ILN)
TAX INCREMENT FINANCING DISTRICT
BE IT RESOLVED by the City Council (the "Council") of the City of Richfield,
Minnesota (the "City"), as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the. City (the "HRA")
and the Council and have heretofore adopted a Redevelopment Plan for the Richfield
Redevelopment Project Area (the "Redevelopment Plan") and adopted a Tax Increment
Financing Plan (the "TIF Plan") for the Interchange-Lyndale-Nicollet (the "ILN") Tax
Increment Financing District (the "ILN. District").
1.02 Due to changes in the project budgets in the ILN District, it has been
proposed that the HRA modify the TIF Plan for the ILN District, all pursuant to and in
accordance with Minnesota Statutes, Sections 469.001 through 469.047, inclusive, as
amended, and Minnesota Statutes, Sections 469.174 to 469.179, inclusive as amended
(the "Act"). Generally the substantive changes to the ILN District TIF Plan include the
modification of the Sources and Uses of Funds.
1.03- The HRA investigated the facts and caused the preparation of the
Modification to the TIF Plan for the ILN District (the "Modification").
1.04 The HRA performed all actions required by law to be performed prior to
the adoption and approval of the proposed Modification.
1.05 The HRA approved the Modification on April 16, 2001.
1.05 The Council has investigated the facts of the Modification.
1.06 The City has performed all actions required by law to be performed prior to
the adoption and approval of the proposed Modification.
Section 2. Findings for the Approval of the .Modification.
2.01. The Council is not modifying the boundaries of the Richfield
Redevelopment Project Area.
2.02. The Council is not modifying the boundaries of the ILN District.
2.03. The Council hereby reaffirms the original findings for ILN District as
modified herein, namely that the ILN District is in the public interest and is a
redevelopment district under Minnesota Statutes, Section 469.174, subd. 10 (a)(1)
and that the proposed development would not occur solely through private investment
•
within the reasonably foreseeable future and therefore the use of tax increment
financing is deemed necessary; the Modification conforms to the general plan for the
development or redevelopment of the City as a whole; and that the Modification will
afford maximum opportunity consistent with the sound needs of the city as a whole, for
the development of the Richfield Redevelopment Project Area by private enterprise.
2.04. The reasons supporting these findings are that private investment will not
finance these development activities due to prohibitive costs, and therefore it is
necessary to finance these redevelopment activities through the use of tax increment
financing so that other development by private enterprise will occur within the Richfield
Redevelopment Project Area; the ILN District is properly zoned; the Tax Increment
Financing Plan conforms to the City's comprehensive plan for redevelopment and
development; and the development activities are necessary. so that development and
redevelopment by private enterprise can occur within the Richfield Redevelopment
Project Area.
Section 3. .Public Purpose.
3.01. The Council hereby finds that the Modification conform in all respects to
the requirements of the Act and are intended and, in the judgement of this Council, the
effect of such actions will be to help fulfill a need to develop an area of the City which is
already built up, to provide employment opportunities, to improve the tax base and to
improve the general economy of the State and hereby serves a public purpose.
• Section 4. .Approval of the Modification: Filing.
4.01. The Modification is hereby approved, and shall be placed on file in the
office of the Community Development Director. Approval of the Modification does not
constitute .approval of anyproject or a Development Agreement with any developer.
4.02. The staff of the City are authorized to file the Modification with the
Commissioner of Revenue .and the Hennepin County Auditor.
4.03. The staff of the City, the City's advisors and legal counsel are authorized
and directed to proceed with the implementation of the Modification and for this purpose
to negotiate, draft, prepare and present to this Council for its consideration all further
plans, resolutions, documents and contracts necessary for this purpose.
Adopted by the City Council of the City of Richfield, Minnesota this 23rd day of
April, 2001..
Martin J. Kirsch, Mayor
ATTEST:
Nancy Gibbs, City Clerk
LJ
. RESOLUTION NO.
RESOLUTION AUTHORIZING THE DECERTIFICATION OF PARCELS
FROM THE INTERCHANGE-LYNDALE-NICOLLET (ILN)
TAX INCREMENT FINANCING DISTRICT
r~
LJ
WHEREAS, on October 21, 1985, the City Council (the "Council") for the City of
Richfield (the "City") created the Interchange-Lyndale-Nicollet (ILN) Tax Increment
Financing District (the "ILN District") within the Richfield Redevelopment Project Area
(the "Project Area"); and
WHEREAS, the Council desires by this resolution to cause the decertification of
eleven (11) parcels in the ILN District after which all property taxes generated by
property within the ILN District will be distributed in the. same manner as all other
property taxes. The eleven (11) parcels to be decertified in the ILN District include the
following:
PID Number
33-028-24-41-0151
33-028-24-41-0152
33-028-24-41-0153
33-028-24-41-0154
33-028-24-41-0155
33-028-24-41-0156
33-028-24-41-0157
33-028-24-41-0158
34-028-24-32-0054
34-028-24-32-0055
34-028-24-32-0056
Address
7500 Lyndale Ave.
7512 Lyndale Ave.
7516 Lyndale Ave.
7520 Lyndale Ave.
7524 Lyndale Ave.
7528. Lyndale Ave.
7532 Lyndale Ave.
7544 Lyndale Ave.
7545. Lyndale Ave.
7533 Lyndale Ave.
7529 Lyndale Ave.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield that the City's staff shall take such action as is necessary to cause the County
Auditor of Hennepin County to decertify the eleven (11) parcels in the ILN District and to
no longer remit tax increment from the eleven (11) parcels to the City.
Adopted by the City Council of the City of Richfield, Minnesota this 23rd day of
April, 2001.
ATTEST:
Nancy Gibbs, City Clerk
Martin J. Kirsch, Mayor
•
•
As of April 9, 2D01
.Draft for:City Staff Review
MODIFICATION TO THE
TAX INCREMENT FINANCING PLAN
for the
INTERSTATE-LYNDALE-NICOLLET (ILN)
TAX INCREMENT FINANCING
(a redevelopment district)
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD
HENNEPIN COUNTY
STATE OF MINNESOTA
As Modified for: HRA consideration: April 16, 2001
and City. Council consideration: Apri123, 2001
E H L E R S Prepared by: FREERS & ASSOCIATES, INC.
3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105
a ASSOCIATES ~ N c (651) 697-8500 fax: (651) 697-8555 www.ehlers-inc.com
r~
U
•
TABLE OF CONTENTS
(for reference purposes only)
SECTION ll -MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE ILN TAX
INCREMENT FINANCING DISTRICT .................. ................... 2-1
Introduction .....................................:..................... 2-1
Sources of Revenue/Bonded Indebtedness .................................. 2-1
Uses of Funds ........................ .........:..................... 2-2
APPENDIX-Parcels to be Decertified in the ILN District ........................... A-1
•
•
• SECTION 11
MOD/F/CAT/ON TO THE TAX INCREMENT FINANCING PLAN FOR THE
INTERSTATE-LYNDALE-N/COLLET (ILN) TAX INCREMENT FINANCING DISTRICT
Introduction
(Modified to add the following as of April 23, 2001)
The Housing and Redevelopment Authority in and for the City of Richfield (the "HRA"), the City of
Richfield (the "City"), staff and consultants have prepared .the following information to expedite a
modification to the Tax Increment Financing Plan (the "TIF Plan") for the ILN Tax Increment. Financing
District ("the District"), a redevelopment tax increment financing district, located in the Richfield
Redevelopment Project Area.
Modifications are being made to bring the TIF Plan and District into compliance with the various rulings by
the State Auditor and the changes in the laws. The purpose of the modifications is as follows: update the
budgets in the TIF Plan; add to the TIF Plan the authorization for all of the interfund loans; decertify 11
parcels from the District; and memorialize the past actions taken. These modifications do not add any
geographic area to the District, nor do they increase the amount of spending.
Sources of Revenue/Bonded Indebtedness
• (Modified to read as follows as of April 23, 2001)
Public. improvement costs, acquisition, public utilities and site improvement costs, interest costs, and other
costs outlined in the -Uses of Funds will be financed primarily through the annual collection of tax
increments. The HRA or City reserves the right to use other sources of revenue legally applicable to the HRA
or City and in accordance with the modified TIF Plan, including, but not limited to, special assessments,
general property taxes, state aid for road maintenance and construction, proceeds from the sale of land, other
contributions from the developer and investment income, to pay for the estimated public costs.
The HRA or City reserves the right to incur bonded indebtedness or other indebtedness as a result of the
modified TIF Plan.. The total principal amount of bonded indebtedness or other indebtedness related to the
use of tax increment financing will not exceed $14,650,000 without additional modifications to the TIF Plan,
pursuant to applicable statutory requirements.
This provision does not obligate the HRA or City to incur debt. The HRA or City may issue bonds or incur
other debt only upon the determination that such action is in the best interest of the City. The HRA or City
may also finance the activities to be undertaken pursuant to the modified TIF Plan through loans from funds
ofthe HRA or City or to reimburse developers on a "pay-as-you-go" basis for eligible costs paid for by
developers.
The estimated sources of funds for the District are contained in the table on the next page.
Richfield Housing and Redevelopment Authority Modification to the Tax Increment Financing Plan for the ILN TIF District 2-1
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SOURCES OF FUNDS ~ Modified As Modified Total
pre-2001 4/23/2001
Tax Increment Revenue $86,050,000 ($3,513,000) $82,537,000
Bond Proceeds $14,650,000 $0 $14,650,000
Interest on Invested Funds $499,750 $2,590,000. $3,089,750
Real Estate Sales $753,000 $753,000
Special Assessments $49,000 $49,000
Rent Lease Revenue $59,000 $59,000
Storm Water Utility & $663,000 ($663,000) $0
Developer Contribution
Municipal State Aid Rd. Fund $750,000 $750,000 $1,500,000
MnDOT Appropriation $25,000 ($25,000) $0
TOTAL PROJECT & $102,637,750 $0 $102,637,750
FINANCING REVENUES
Uses of Funds
(Modified to read as follows as of April 23, 2001)
The HRA and City have determined that it will be necessary to provide assistance to the project for certain
costs. The HRA and City have studied the feasibility of the development or redevelopment of property in
and around the District.. To facilitate the establishment and development or redevelopment of the District,
this modified TIF Plan authorizes-the use of tax increment financing to pay for the. cost of certain eligible
expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table
on the next page.
Richfield Housing and Redevelopment Authority Modification to the Tax Increment Financing Plan for the ILN TIF District 2-2
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USES OF FITNDS As Modified As Modified Total
pre-2001 4/23/2001
Land/Building Acquisition $47,269,010 ($11,968,300) $35,300,710
.Site Improvements $65,000 ($65,000) $0
Public Utilities $1,335,000 $325,000 $1,660,000
Streets & Sidewalks $6,164,000 $400,000. $6,564,000
Bond Principal Payments $2,000,000, $12,650,000 $14,650,000
Bond Interest Payments $1,300,000 $2,100,000 $3,400,000
Loan/Note Interest Payments $34,660,000 SO $34,660,000
Administrative Costs $9,555,000 ($3,555,000) $6,000,000
Bond Discount $289,740 $100,000 $389,740
Arbitrage Rebate $13,300 $13,300
PROJECT COSTS TOTAL $102,637,750 $0 $102,637,750
• The above budget is organized according to the Office of the State Auditor (OSA) Tax Increment Financing
Authority Report forms.
Estimated costs associated with the District are subject to change among categories without a modification
to this Plan. The cost of all activities to be considered for tax increment financing will not exceed, without
formal modification, the budget above pursuant to the applicable statutory requirements. Pursuant to M.S.,
Section 469.1763, Subd. 2, no more than 25 percent of the tax increment paid by property within the District
will be spent on activities related to development or redevelopment outside of the District but within the
boundaries of the Richfield Redevelopment Project Area, (including administrative costs, that may be
considered to be spent outside of the District) subject to the limitations as described in this Plan.
•
Richfield Housing and RedevelopmenrAuthority Modification to the Tax Increment Financing Plan for the ILN TIF District 2-3
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APPENDIX
Parcels to be Decertified in the ILN District:
33-028-24-41-0151 7500 Lyndale Avenue South
33-028-24-41-0152 7512 Lyndale Avenue South
33-028-24-41-0153. 7516 Lyndale Avenue South
33-028-24-41-0154 7520 .Lyndale Avenue South
33-028-24-41-0155 7524 Lyndale Avenue South
33-028-24-41-0156 7528 Lyndale Avenue South
33-028-24-41-0157 7532 Lyndale Avenue South
33-028-24-41-0158 7544 Lyndale Avenue South
34-028-24-32-0054 7545 Lyndale Avenue South
34-028-24-32-0055 7533 Lyndale Avenue South
34-028-24-32-0056 7529 Lyndale Avenue South
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APPENDIX