06-07-99 agendaCITY OF RICHFIELD
MONDAY, JUNE 7, 1999
REGULAR CITY COUNCIL STUDY SESSION
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
ROLL CALL
I. 7:00-7:30 P.M. ANNUAL MEETING WITH HUMAN RIGHTS COMMISSION
I1. 7:30-7:45 P.M. DISCUSSION OF LEASE RELATED TO ACADEMY OF HOLY
ANGELS POND AT 66TH STREET AND PILLSBURY AVENUE
STUDY SESSION LETTER NO. 16
III. 7:45-8:15 P.M. PRESENTATION OF 1998 COMPREHENSIVE ANNUAL
FINANCIAL REPORT
STUDY SESSION LETTER NO. 17
IV. 8:15-8:30 P.M. DISCUSSION WITH CITY ATTORNEY REGARDING STATE
LAW REQUIREMENTS UNDER MINNESOTA OPEN MEETING
LAW, GIFT LAW AND MINNESOTA GOVERNMENT DATA
PRACTICES ACT
STUDY SESSION LETTER NO. 18
V. 8:30-8:45 P.M. DISCUSSION OF INCREASING NUMBER OF ALCOHOL
LICENSES AVAILABLE WITHIN RICHFIELD
STUDY SESSION LETTER NO. 19
VI. 8:45-9:00 P.M. STATUS OF AIRPORT RELATED ISSUES
STUDY SESSION LETTER NO. 20
VII. 9:00-9:15 P.M. DISCUSSION OF MERGER OF CONSOLIDATED POLICE AND
FIRE ACCOUNTS INTO PERA
STUDY SESSION LETTER NO. 21
9:15 P.M. 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.
CITY OF RICHFIELD,. MINNESOTA
Study Session Letter No 19
Agenda June 7, 1999
Issue Statement:
Discussion and consideration of Public Safety staffs recommendation to increase the
number of alcohol licenses available within the City of Richfield.
Background:
The City of Richfield currently issues licenses for the following categories of alcohol:
• Intoxicating Liquor
• Wine
• On-Sale 3.2 Malt Liquor
• Off-Sale 3.2 Malt Liquor
Intoxicating_Liquor
City ordinance states that there can be a total of seven intoxicating liquor licenses
issued to establishments. Currently, five of the seven intoxicating liquor licenses are
spoken for. State law places a limit on the number of on-sale intoxicating liquor licenses
that the City can issue. Licenses issued to clubs or congressionally chartered veterans
organizations are excluded from the limit. State statute allows for a city such as
Richfield to issue up to 18 intoxicating liquor licenses.
• Wine
City ordinance states that there can be a total of seven wine licenses issued to
establishments. Currently, five of the seven wine licenses are spoken for. State statute
does no# address the number of wine licenses a community may have.
On-Sale/Off-Sale 3.2 Malt Liquor
City ordinance states that there can be a total of 15 on-sale 3.2 malt liquor licenses
issued to establishments. Currently, 12 of the 15 on-sale 3.2 malt liquor licenses are
spoken for. State statute does not address the number of on-sale 3.2 malt liquor
licenses a community may have.
Off-sale 3.2 malt liquor licenses are not restricted by number. Currently, there are a
total of 13 establishments that sell off-sale 3.2 malt liquor.
Staff has had several discussions with representatives in the Community Development
Department regarding future redevelopment projects in the City and how those projects
will impact alcohol licensing needs in the future. Community Development staff has
identified three major projects that in the very near future will support a total of six
establishments that most likely will be requesting alcohol licenses. In most cases, it
appears their requests will be for a full intoxicating liquor license; however, wine may
also be requested. The development projects will involve two sites at Urban Village,
• two or three at Interchange West and one at the Candlewood site.
Public Safety staff is recommending that discussions occur regarding increasing the
total liquor licenses available prior to the completion of development projects.
Discussions should include whether it is best to increase the total intoxicating liquor,
wine and on-sale malt liquor licenses available at this time (in anticipation of future
needs) or whether it is best to increase the number of licenses needed as the individual
requests for a license arise.
Recommended Motion:
Discussion and consideration of staff's recommendation to increase the number of
alcohol licenses available within the City of Richfield.
Basis of Recommendation:
1. Increasing the number of alcohol licenses would result in licenses being available
prior to the completion of development projects which would mean that potential
tenants would know licenses are available to apply for at the beginning of their
negotiations with developers.
2. Increasing the number of alcohol licenses available would also mean that staff would
not have to return to Council several times to make a request for an increase in
licenses and would seem to be a more efficient and proactive way of meeting future
development needs and issues.
Alternative Recommendation:
1. The Council could decide to do nothing at this time which would mean that requests
for alcohol related licenses would be reviewed as they occur, on a case by case
basis. It would also mean that the total number of alcohol licenses might need to be
increased several times based on the requests made.
Discussion/Decision Mode:
Discussion and consideration of staffs recommendation to increase the number of
alcohol licenses available within the City of Richfield is presented for Council's
consideration at this time.
ien L. Devich
ng City Manager
SLD:cak
CITY OF RICHFIELD, MINNESOTA
~, Study Session Letter No. 1g
Agenda June 7, 1999
Issue Statement:
Discussion with City Attorney regarding state law. requirements under the Minnesota
Open Meeting Law, the "Gift Law" and the Minnesota Government Data Practices Act.
Background:
The City Council requested that the City Attorney provide an update on the Minnesota
Open Meeting Law, the Gift Law and the Minnesota Government Data Practices Act..
The City Attorney has prepared materials that Council Members may keep for future
reference. The materials will be provided to Council Members at the Study Session. At
the Study Session meeting, the City Attorney will briefly review the attorney-client
privilege as it relates to the Open Meeting Law and Data Practices Act and will be
available to answer other questions that Council Members may have.
Recommended Motion:
No action is required. This item is for discussion purposes only.
Basis of Recommendation:
The City Council requested that this item be discussed at a Study Session.
Alternative Recommendation:
None.
Discussion/Decision Mode:
Discuss requirements of Minnesota Open Meeting Law, Gift Law and Minnesota
Government Data Practices Act with City Attorney.
pectfully submitted,
p
en L. evich
Acting City Manager
SLD:cak
CITY OF RLCHFIELD, MINNESOTA
Study Session Letter No.1~
Agenda June 7, 1999
Issue Statement:
Presentation of the 1998 Comprehensive Annual Financial Report (CAFR).
Background:
The firm of HLB Tautges, Redpath, LTD, has completed the City's 1998 financial audit.
Data on year-end 1998 was presented previously to the City Council in April as
prescribed by City Charter.
This presentation by the auditors is meant to be an informal discussion of the 1998
year-end report. Formal receipt of the financial report will be presented at the City
Council meeting on June 14, 1999.
Recommended Motion:
No formal action is being recommended at this time.
Basis of Recommendation:
1. The financial audit and formal report of the 1998 fiscal year have been completed.
2. Presentation of the report at a Study Session provides an opportunity for more in-
depth discussion of the report as well as trends and comparisons identified by the
auditors.
Alternative Recommendation:
The Study Session discussion of this item could be omitted and presented at a regular
City Council meeting.
Discussion/Decision Mode:
No action is required.
SLD:cak
•
Acting City Manager
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No. 16
Agenda June 7, 1999
Issue Statement:
Lease related to the Academy of Holy Angels pond at 66th Street and Pillsbury Avenue.
Background:
On August 10, 1998 the City Council approved an off-street parking contract with the
Academy of the Holy Angels (AHA) which included a stipulation that the pond along
66th Street be improved. Representatives from the AHA appeared before the City
Council at the May 10, 1999 Study Session to discuss the pond. They were concerned
about liability issues and details of the proposed agreement. The AHA has requested
an opportunity to be on the June 7 Study Session agenda to further discuss the pond
lease. There are two issues that AHA wishes to discuss:
1. City contribution to construction cost; and
2. Maintenance issues, including an issue about responsibility for water quality or
seepage.
City staff has previously indicated to the City Council and AHA that the City contribution
toward the pond construction would range from $25,000 to $50,000. Currently, it is
staffs estimation that the City contribution would be at the upper limit of that estimate or
about $50,000. However, with AHA's preference to construct a wet pond rather than the
original dry pond concept, they are seeking additional funds from the City.
. Recommended Motion:
Discuss this drainage pond lease issue.
Basis of Recommendation:
1. The City and AHA have discussed this drainage pond issue for several months.
2. The drainage pond issue at 66th Street/PillsburyRvenue must be addressed in
some fashion with or without direct City participation.
3. This is a point in these discussions that requires City Council feedback for future
direction. It has generally been agreed that a lease will be prepared but issues
remain and must be resolved before the lease can be finalized.
Alternative Recommendation:
None. This issue must be addressed in some manner.
Discussion/Decision Mode:
The Academy of the Holy Angels requested the opportunity to discuss this item at the
June 7 City Council Study Session.
•
City Manager
SLD:cak
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No. 21
Agenda June 7, 1999
Issue Statement•
Discussion of Richfield consolidated police and fire pension accounts.
Background:
On May 25, 1999, the Governor signed into law Chapter 222, 1999 Laws of Minnesota,
formerly Senate 319, the Omnibus Pension bill. Article 4 of that law addresses the
merger of 44 local consolidated police and fire accounts administered. by PERA. This
merger will take effect on July 1, 1999 unless individual cities indicate otherwise.
The law includes an option for a city to elect not to merge its consolidated accounts if so
desired. In those cases, PERA must receive notice by June 15, 1999 that a city
chooses to retain its account as independent retirement fund. Cities that have two
consolidated accounts such as Richfield must choose to retain both as independent
accounts if they wish to retain any independent accounts.
The merger of the consolidated police and fire. accounts with PERA leaves Richfield in
an excellent position in that the law provides for the City to receive residual assets from
PERA for both the police and fire account. Barring a major stock market collapse
before June 30, 1999, Richfield would receive well in excess of $5 million of residual
assets for both the police and fire consolidated accounts under the merger. Further,
there is no downside for the City of Richfield to merge accounts under the law that was
passed.
The City of Richfield worked with Senator Dave Johnson and the City of Bloomington to
initiate the piece of legislation that allowed the return of residual assets upon merging
accounts. This was done because of a fear that excess assets from cities such as
Richfield could be used to cover the unfunded liabilities in a number of cities that had
severely underfunded police and fire accounts.
The pension law signed by the Governor on May 25, 1999 would make the
consolidation of the Richfield accounts automatic on July 1, 1999 unless the Richfield
City Council decided to take other action. If the City decides to go along with the
merger of the consolidated accounts, no action is necessary by the City Council. The
Acting City Manager could simply notify PERA that the City has no objection to merging
its local consolidated relief accounts with the PERA Police and Fire Fund.
Recommended Motion:
Discuss the merger of the consolidated police and fire accounts into PERA.
Basis of Recommendation:
1. The City of Richfield has worked with Senator Dave Johnson to make this
legislation possible.
2. The City of Richfield would be a community that receives a significant benefit from
merging the independent consolidated accounts into PERA.
3. There is no significant reason not to proceed with merging the accounts
administered by PERA.
4. By allowing the merger of accounts to occur on July 1, the City becomes eligible to
receive its residual fund assets sometime in 1999.
Alternative Recommendation:
1. The City Council could indicate they wish to take official action at the next City
Council. meeting to stop the merging of the consolidated accounts administered by
PERA.
Discussion/Decision Mode:
If the City Council wanted to take some action to stop the merging of our consolidated
accounts with PERA, that action should be taken at the June 14, 1999 City Council
meeting. If that were the City Council's direction, a letter could be prepared for that
meeting. Otherwise, it is the Acting City Manager's intention to inform PERA that the
City does not object to the merging of the City accounts.
e tfully submi ,
Cta ~ r
City Manager
SLD:cak
CITY OF RICHFIELD, MINNESOTA
Study Session Letter No. 20
Agenda June 7, 1999
Issue Statement:
Status of airport related issues.
Background:
Recent developments regarding airport issues including the following:
Airport Legislative Initiatives
April and May were full of highs and lows when it came to Richfield's airport impact bill.
There were weeks when the bill's language would be changed several times and
moments when observers believed that nothing would make it through committee. But
through the concerted efforts and tenacity of Senator Dave Johnson, two important
pieces of airport legislation were passed in mid-May. Other Richfield delegation that
aided in the process of passing the bill through the legislature include Representative
Dan Larson and Representative Mark Gleason; and lobbyists Rich Ginsburg, John Choi,
Mary Finnigan, Randy Asunma and Jim Prosser.
In the Omnibus Tax Bill, the State Legislature created an Airport Impact Zone in
Richfield. Legislators acknowledged that certain areas of Richfield "will experience
unique and adverse environmental and socioeconomic impacts directly associated with
the operation of Minneapolis-St. Paul International Airport." In addition to these
findings, the City will receive $30 million of general obligation bonds from the MAC to
spend on land use conversion within the airport impact zone. (Attachment A)
The legislature also created a Governor's airport community stabilization funding task
force. The purpose of this task force is "to identify and recommend funding sources"
using the 1996 MSP Noise Mitigation Program Report and the Low Frequency Noise
Policy Committee's report to be issued later this summer. The committee will be
composed of members of the Governor's staff, MAC, Department of Finance,
Department of Trade and Economic Development, two at large representatives
appointed by the Governor and appointed members from the cities of Bloomington,
Minneapolis, Burnsville, Eagan and Richfield. The task force is to begin meeting this
summer and will issue their report by January 2000. (Attachment B)
A press release has been sent to all the major TV stations, radio stations and
newspapers in this area. (Attachment C)
It is unclear at this time what position the MAC is taking on the legislative bills. In an
effort to continue the spirit of the Richfield/MAC Agreement, Richfield's City Council
unanimously adopted Resolution No. 8728, entitled "Resolution Seeking Support and
Cooperation in the Implementation of Section 35 of the Omnibus Tax Act," on May 24,
1999. The resolution urges the MAC's support and cooperation in achieving needed
. mitigation of airport impacts for Richfield. (Attachment D)
MAC's continues to contend that by using revenue generated by the airport there may
be an issue of violating the Federal Aviation Administration revenue diversion policy.
The legislation provides for $30 million in MAC general obligation bonds, which are
backed by airport landing fees. Richfield's legal counsel Steve Pflaum, McDermott, Will
and Emery, is highly confident that land use conversion, due to expansion of the airport,
is a valid use of airport revenue. As this issue has now proceeded to a federal level,
with the help of Dennis McGrann, lobbyist in Washington; Steve Devich, Acting City
Manager; Jim Prosser, Ehlers & Associates, Inc.; and Steve Pflaum met with
congressional delegates to discuss the MN State Legislative airport impact decision and
asked for help to receive the money for redevelopment. Wellstone, Vento, Oberstar,
Gram and Sabo's staff were very responsive to the problems Richfield is now faced
with.
A letter to residents in the airport impact zone and Q&A are now complete. This will be
sent out within a week to residents in the impacted area and the Q&A will be included
within July's issue of Your City.
Low FrequencLr Noise Policy Committee (LFNPC)
The LFNPC meeting on May 19 focused on an update from the expert panel. The
expert panel recommended and the LFNPC adopted a noise metric for their report. The
metric that will be used is-not based on A or C weighting of noise, but on the amount of
noise energy produced in the range of 25 to 80 Hz per noise event (airport operation).
The reason for choosing this metric is that it will more accurately reflect the low
frequency noise impact on a residents home, where it was believed that A weighting
would under estimate the effect and C weighting may over state the impact.
The expert panel also reported that they are progressing with their laboratory
experiments on establishing an annoyance threshold for low frequency noise. One of
the important preliminary results has been that the addition of rattle to an event has the
same impact as an additional 5 dB of noise. The expert panel also reported that they
are out taking measurements of insulated and those homes that have not been
insulated within Richfield and Minneapolis. The purpose of these measurements is to
determine what the effectiveness of insulation for overhead noise will have on low
frequency noise. They expect to have a more detailed analysis of these tests available
at the June meeting.
The expert panel also reported that they are progressing on their draft plan and will
bring copies of draft chapters throughout upcoming meetings. The next LFNPC meeting
will be held on June 23, 1999 at 3 p.m. at the main terminal.
MASAC
The May meeting of the Metropolitan Airports Sound Abatement Council was held on
May 25 at the MAC general offices. The meetings are currently being held in a
doublewide trailer in the parking lot, while the MAC general offices are being remodeled.
• The meeting focused on an update of the.crossing in the corridor plan, which showed
that the FAA Tower has continued to improve on the number of planes it diverts into the
Eagan Mendota Heights corridor.
The May meeting also initiated the open comment proceedings on the environmental
review of the Minneapolis straight out procedure. This procedure allows for planes to
use alternate headings after take off -- the purpose being to spread the noise away from
those homes that are on the approach heading of the parallel runways. The comment
period will be open until June 22, comments should be sent to Roy Furhman at the
MAC.
MASAC Operations Committee has tentatively scheduled a special operations meeting
for June 30. The purpose of this meeting will be to tour the engine run up pad and the
Northwest engine test cell facility.
The next MASAC meeting is on June 22, 1999
Discussion/Decision Mode:
This matter will be discussed at the Study Session of June 7, 1999.
City Manager
SLD:cak
•
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324.9. Sec. 35. [CITY OF RICHFIELD; AIRPORT IMPACT ZONE;
324.10 FINANCING.]
324.11 Subdivision 1. [DESIGNATION OF AIRPORT IMPACT ZONE.] There
324.12 is established within the city of Richfield an airport impact
324.13 zone consisting of the-real property described as follows:
324.14 commencing at the intersection of the north city limits with the
324.15 w'ly ROW line of trunk highway 77, thence south along the w'ly
324.16 ROW line of trunk highway 77 to the n'ly ROW line of interstate.
324.17 highway 494, thence west along the n'ly ROW line of interstate
324.18 highway 494 to the center line of Bloomington Avenue, thence
324.19 north on the center line of Bloomington Avenue to the n'ly ROW
324.20 line of East 77th Street to a point 133.2 feet east of the e'ly
324.21 ROW line of Bloomington Avenue, thence north on a line pazallel
324.22 with and 133.2-feet eastof the e'ly ROW line of Bloomington
324.23 Avenue to the north city limits, thence east along the north
324.24 city limits to the point of beginning.
324.25. Subd. 2. [AIRPORT IMPACTS DEFINED.] The legislature finds
324.26 that:
324.27 (1) the area included within the airport. impact zone
324.28 defined under this section will experience significant and
324.29 unique adverse environmental and socioeconomic impacts directly
324.30 associated with the operation of the Minneapolis-St. Paul
324.31 International Airport;
324.32 (2) whether funded directly by the metropolitan airports
324.33 commission or by other means, expenditures for mitigation of
324.34. those airport-created impacts involve an aspect of the airport's
324.35 capital and operating expenses and will be made for airport
324.36 purposes;
325.1 (3) appropriate measures to mitigate those adverse impacts
325.2 include but are not limited to housing replacement activities;
325.3 and
325.4 (4) the state legislature has authorized the expansion of
325.5 the Minneapolis-St. Paul International Airport in order to
325.6 accommodate the future economic growth of the state. The
325.7 environmental quality boazd has adopted findings that identify
325.8. the need to make land uses in the azea identified in subdivision
325.9 1 compatible with airport uses.
325.10 Subd. 3. [METROPOLITAN AIRPORTS COMMISSION BONDS;
325.11 SECURITY.] The metropolitan airports commission shall issue and
325.12 sell its obligations in an aggregate principal amount not to
325.13 exceed $30,000,000, after deducting costs of issuance, discount,
325.14 and capitalized interest. The metropolitan airports commission
325.15 shall, not later than January 30, 2000, transfer $30,000,000 to
325.16 the city of Richfield to be used to finance the costs of land
325.17 and structure acquisition, demolition, relocation and site
325.18 clearance, and public improvements within the airport impact tax
325.19 zone established under subdivision 1, including, without
325.20 limitation, the following housing replacement activities
325.21 anywhere within the city: rehabilitation, acquisition,
325.22 demolition, relocation assistance, and relocation of existing
325.23 .single-family or multifamily housing, and financing of new or
325.24 existing single-family or multifamily housing that replaces
325.25 . housing units eliminated by redevelopment within the airport
325.26 impact zone.
325.27 Subd. 4. [TERMS.] The obligations must. be secured by the
325.28 revenues and pledges from the metropolitan airports commission
325.29 in accordance with subdivision 5, and must be issued in
325.30 accordance with chapter 475, provided that no election is
325.31 required, net debt limits do not apply, and the obligations must
325.32 mature no later than 35 years from the date of issue of the
325.33 original obligations. The metropolitan airports commission may
325.34 issue. obligations to refund any obligations issued under this
325.35 section, the principal amount of which shall not be included in
325.36 computing the limits on amount of obligations issuable by the
326.1 commission under this section.
..326:2. Subd. 5. [SECURITY; METROPOLITAN AIRPORTS COMMISSION
326.3 PAYMENTS.] (a) Notwithstanding anything to the contrary in
326.4 Minnesota: Statutes,. sections 473.601 to 473.679, on or .before
326.5 the due date of each principal and interest payment on
326.6 obligations issued under this. section, the treasurer of the
326.7 metropolitan airports commission shall remit from any available
326.8 funds to the trustee or paying agent for the obligations an
326.9 amount sufficient for the payment, without further order from
326.10 the commission. The metropolitan airports commission shall be
326.11 obligated to the holders of obligations issued under this
326.12 section, to establish, revise from time to time, and collect
326.13 landing fees according to schedules such as to produce revenues,
326.14 together with other revenues not restricted by law or regulation
326.15. available to the metropolitan airport commission, at all times
326.16 sufficient to pay 105 percent of principal and interest on all
326.17 obligations issued under this section.
326.18. (b) Notwithstanding anything to the contrary in Minnesota
326.19 Statutes, sections 473.601 to 473.679, any obligations issued
326.20 under this section shall be fiarther secured by the pledge of the
326.21 full faith and credit of the metropolitan airports commission,
326.22 which shall be obligated to levy upon all taxable property
326.23 within the metropolitan azea a tax at the times and in the
326.24 amounts, if any, as may be required to provide funds sufficient
326.25 to pay all the obligations and interest thereon in the event
326.26 revenues pledged under paragraph (a), aze insufficient for that
326.27 purpose. This tax, if ever required to be levied, shall not be
326.28 subject to any limitation of rate or amount.
326.29 (c) The pledges described in this. section shall be made-by
326.30 resolution of the metropolitan airports commission. The
326.31 security afforded by this section extends equally and ratably to
326.32. all bonds issued under this section and all bonds issued by'the
326.33 metropolitan airports commission secured by similaz pledges.
326.34 Subd. 6. [OBLIGATION DEFINED.] In subdivisions 1 to 5,
326.35 "obligation" has the meaning given in Minnesota Statutes,
326.36 section 475.51, subdivision 3. The term includes obligations
327.1 issued to refund prior obligations issued under this section.
327.2 Subd. 7. [COMPLIANCE WITH FEDERAL LAW; NO ADDITIONAL
327.3 COMMITMENTS.] (a) Nothing in this section shall require the
327.4 metropolitan airports commission to violate federal law or
327.5 regulation, including the Federal Aviation Administration
327.6 revenue diversion policy.
327.7 (b) If this section violates federal law or regulations,
.327.8 including the Federal Aviation Administration revenue diversion
327.9 policy, the requirements imposed upon the metropolitan airports
327.10 commission under this section are terminated and shall not
327.11 become commitments of the state.
327.12 Subd. 8. [RELATIONSHIP TO REQUIREMENTS UNDER
327.13 AGREEMENT.] The requirements imposed upon the metropolitan
327.14 airports commission under this section are in addition to any
327.15 requirements imposed upon the commission under the
327.16 Richfield-metropolitan airports commission noise mitigation .
327.17 agreement dated December 18, 1998.
327.18 Sec. 36. [EXTENSIONS FOR OPERATION ALLIED FORCE SERVICE
327.19 MEMBERS.]
327.20 The limitations of time provided by Minnesota Statutes,
327.21 chapter 289A relating to administration of taxes, chapter 290
327.22 relating to income taxes, chapter 271 relating to the tax court
327.23 for filing returns, paying taxes, claiming refunds, commencing
327.24 action thereon, appealing to the tax court from orders relating
327.25 to income taxes, and the filing of petitions under chapter 278,
327.26 and appealing to the Supreme Court from decisions of the tax
327.27 court relating. to income taxes are extended, as provided in the
327.28 special rule for section 7508 of the Internal Revenue Code in
327.29 section 1, paragraph (c), of Public Law Number 106-21.
327.30 Sec. 37. [TRANSFER.]
327.31 The commissioner of finance shall transfer $2,000,000 from
327.32 the conservation fund under Minnesota Statutes, section 40A.151,
.327.33 to the general fund on July 1, 1999.
327.34 Sec. 38. [APPROPRIATION.]
327.35 $143,000 is appropriated to the commissioner of revenue
327.36 from the general fund for the cost of administering this act.
328.1 This appropriation is for fiscal year 2000 and any unspent
328.2 amount may be carried over to fiscal yeaz 2001. This is a
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IMMEDIATE RELEASE
Date: May 18, 1999
For more information, call:.
Dawn. Weitzel
6700 Portland Avenue
Richfield, MN 55423
Voice: 612-861-9716
FAX: 612-861-9749
NEIGHBORING COMMUNITIES WIN...
LEGISLATURE DESIGNATES AIRPORT REDEVELOPMENT FUNDING,. CREATES
COMMISSION TO IDENTIFY FUNDS FOR FURTHER AIRPORT MITIGATION
The 1999 Minnesota Legislature designated that $30 million in Metropolitan Airports
Commission (MAC) bonding be used to pay for redevelopment of afour--block area of
Richfield adjacent to the new North-South Runway at the airport.
In addition, the Legislature created a Governor's task force on community stabilization.
The task force is designed to identify and recommend funding sources for
implementation of noise mitigation measures in communities around the Minneapolis-St.
Paul International Airport (MSP). The group must make recommendations to the
Governor and Legislature by January 15, 2000.
"Both of these measures are good news for Richfield and other communities around
the airport," said Richfield's Mayor Martin Kirsch. "This legislation has brought us a step
closer to protection. from the noise impacts of a new North-South Runway."
Kirsch said many people were responsible for Richfield's legislative success -and
singled out Senator Dave Johnson, DFL-Bloomington, and Representative Dan Larson,
DFL-Bloomington, for their tireless efforts.
"Through these protective measures, the Legislature is saying neither airport planning
nor airport expansion can occur in a vacuum," said Johnson. "Where there are impacts,
there must be money spent to mitigate them."
Richfield sought funding at the Legislature because of MAC's construction of a new
North-South Runway to be operational in 2003. This runway is only two blocks away
from homes in Richfield. The Metropolitan Council determined, and MAC agreed, that
current residential land uses in the first four blocks west of Cedar Avenue in Richfield
• -would not be compatible with an airport.
~ While the designated funding is good news, it is only a-first step. "Richfield will not
know for at least several months when redevelopment of the east side can begin and
the process that will be used," Kirsch said.
Adding to the uncertainty in the time frame is MAC's contention that by using revenue
generated by the airport there may be an issue of violating the Federal Aviation
Administration revenue diversion policy. The legislation provides for $30 million in MAC
general obligation bonds, which are backed by airport landing fees.
"The City is already working on the federal level with Congressmen Oberstar and Sabo,
and the FAA to ensure that this will not be an issue," said Mayor Kirsch.
The City continues to seek an additional $30 million from the FAA and $30 million from
MAC to fully fund the redevelopment.. Richfield is working on both a regional and
federal levelto secure that funding..
"As soon as more is known about the funding and process, the City will inform residents
in the airport impact redevelopment area as well as the entire community,".Kirsch said.
"But until the committed funding is secured, no redevelopment can take place," he said..
The Low Frequency Noise Policy Committee, established in January 1999 and
consisting. of a member from. Minneapolis, Bloomington, the MAC and Richfield is
expected to release recommendations in August on areas that will be impacted by low
frequency noise from the new runway and potential noise mitigation measures. This
includes neighborhoods in Richfield beyond the redevelopment area. The Governor's
new task force would take those recommendations and identify funding sources to pay
for noise protection.
The Governor's task force includes representatives of five communities, including
Richfield; the chair of the Metropolitan Airports Commission or his designee; a member
of the Governor's staff; the commissioners of Finance and of Trade and Economic
Development or their designees; and, two at-large members appointed by the Governor.
Their first meeting must be convened no later than July 31.
"Many of us hope that this task force can be a first step to a new, cooperative process of
planning between the communities and the MAC," said Representative Larson. "The
communities certainly want that."
"Achieving the needed protection from noise impacts to keep Richfield vital is critical to
the community," said Senator Johnson.
"The involvement of so many key players throughout the community -such as
Representative Mark Gleason, residents and business people, has been phenomenal."
Kirsch said. "Together we are ensuring that Richfield will continue to be the best place
to live, work, learn and do business in the metropolitan area."
RESOLUTION NO. 8728
RESOLUTION SEEKING SUPPORT AND COOPERATION IN
IMPLEMENTATION OF SECTION 35 OF OMNIBUS TAX ACT
WHEREAS, the City of Richfield, the Metropolitan Airports Commission
("MAC") and the Metropolitan Council have previously entered into an agreement
entitled "Richfield-MAC Noise Mitigation Agreement ("Agreement") on December 18,
1999; and
WHEREAS, the Agreement, among other things, requires the Metropolitan
Council, MAC and Richfield to propose. legislation to the. Minnesota Legislature that
would assist the City of Richfield to re-develop the area :immediately adjacent to the.
new North/South Runway; and
WHEREAS, the new runway will be just blocks away from thousands of homes
in Bloomington, Minneapolis and Richfield and carry 300 to 400 aircraft flights a day;
and
WHEREAS, Metropolitan Council, MAC, Richfield and others jointly lobbied for
the passage of S.F. 1221 (Senator Dave Johnson, DFL) and H.F. 1290 (Representative
Peg Larsen, R); and
WHEREAS, the 1999 Minnesota Legislature did not enact S. F. 12211H.F. 1290
but enacted H.F.2420, the omnibus tax bill; and
WHEREAS, Section 35 of the omnibus tax bill, which is attached hereto as
Exhibit A, directs the MAC to issue and sell $30,000,000.00 of general obligation bonds.
and transfer $30,000,000.00 to the City of Richfield by January 30, 2000, to assist the
City of Richfield's planned re-development of the area immediately adjacent to the new
North/South Runway which area is designated in Section 35 as an "airport impact
zone", and is defined in Section 35 as an area which will "experience significant and
unique adverse environmental and socioeconomic impacts directly associated with the
operation of the Minneapolis-St. Paul International Airport."; and
WHEREAS, Section 35 of the omnibus tax bill states that the proceeds of the
general obligation bonds may be used by the City of Richfield to finance the costs of
land and structure acquisition, demolition, relocation and site clearance, and public
improvements within the airport impact zone, including, without limitation, the following
housing replacement activities anywhere within the City: rehabilitation, acquisition,
demolition, relocation assistance, and relocation of existing single-family or multifamily
housing, and financing of new or existing single-family or multifamily housing that
replaces. housing units eliminated by redevelopment within the airport impact zone; and
WHEREAS, the provisions Section 35 of the omnibus tax bill will assist the
City of Richfield redevelop the lands lying within the airport impact zone; and
WHEREAS, the redevelopment of the lands lying within the airport impact zone
is in the .vital best interest of the community and its residents.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
Richfield, Minnesota as follows:
1) The City urges the Metropolitan Council and the MAC to support the City of
Richfield's planned redevelopment of the area immediately adjacent to the
North/South Runway and adhere to the requirements of Section 35 of the omnibus
tax bill
Resolution No. 8728
-2-
2) The City further urges the MAC to immediately seek FAA approval, so that the MAC
may transfer the required $30,000,000.00 of bond proceeds to the City of Richfield
by January 30, 2000 as required by Section 35 of the omnibus tax bill. The City
pledges to cooperate, support and assist in that effort.
3) The City has begun the planning process for redeveloping the area immediately
adjacent to the new North/South Runway and intends to seek all. necessary
approvals to begin redevelopment once the planning process is completed.
4) The City Manager and staff are hereby authorized and directed to take` all necessary
actions on behalf of the City of Richfield to implement this. resolution.
Adopted by the City Council of the City of Richfield, Minnesota this 24th day of
May, 1999.
/rG~
Martin J. Kirsc ;Mayor
ATTEST:
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Thomas P. Ferber, City Clerk
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council.
5!27/99
Date Address General Issue Specific Issue Raised
5/2/99 16th Ave General Update Residentjustmoved in and is wondering
what's going?
5/10/99 General Update What's been going on with buyouts?
5/11/99 70th & 17th buyout Afraid to move - 85 years old and sick, upset.
5/17/99 6820 Cedar General Update Wanted a general update on what was
happening with the airport.
5/17/99 7145 - 15th Ave Part 150 Does she qualify for sound insulation?
5/17/99 18th Ave buyout Did the airport bill pass? When do buyouts
begin?
5/18/99 General Update Wanted a legislative update. Needs to put a
new rood on, should he put it on?
5/18/99 6920 Cedar buyout When will she be bought out?
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council
5/27/99
Date Address General Issue Specific Issue Raised
5/18/99 67 & 16 Estate Property ~k7uyouf Home.. is an estate home and is wondering if it
will be bought out?
5/18/99 16th Ave buyout Is the home going to be bought out?
5/18/99 6637 - 14th buyout Resident is wondering if their home is in the
~ buyout area? .Saw a map'.
5/19/99 7405 - 16th Ave buyout Resident talked to a realtor with a map.
Resident is concerned about what wilt happen,
how will market rate be.determined, and what
comes with the buyout.
5/19/99 72 & Blaisdell Part 150 Wondering if his home would be included in
the Part 150 program?
5/19/99 buyout Should he sell now? Asked about the
deflation of property values?
5/19/99 Cedar buyout Owns a property on Cedarand wants to know
what's going on.
5/20/99 64 & 16 General Update Questions about what we're going to do with
the airport.
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council 5/27/99
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Date Address General Issue Specific Issue Raised
5/20/99 66th & 77th 'General Update New resident who did not know anything
about what's going orr-with the airport. Also
wanted documentation for legal recourse
against former owner.
5/21/99 6709 - 17th buyout. When is the buyout going to begin? Will
people be able to keep the same interest rate?
5/21/99 Residents who want to be buyout Residents who have expressed an interest in
bought oufi-named in one being bought out.
call - 7008 - 17th, 6709 -
17th, 7545 - 16th. ~
5/24/99 6920 Cedar buyout Mother lives on Cedar and is just starting to
understand that she is going to be bought out,
he wants to know what's going to happen.
5/24/99 A realator with a friend on buyout Wants to know what will happen to his friends
18th home? Will it be bought out, how will it
happen?
5/25/99 7410 - 16th Ave buyout Is there going to be a buyout? "Richfield is a
dump" She would like to be the first person to
be bought out.
5/26/99 7741-1 01 Grant Lane General Update Owns rental property at 7101 17th Ave and
Overland Park, KS, 66204 wanted to know what's going on.
5/26/99 6412 - 15th buyout Wanted to know if here home was going to be
bought out. Also state "I don't want to be a
prisoner in her own home." in regards to the
LFNPC study. Also stated that she's been
hearing that Bloomington is going to annex
Richfield.
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