04-14-09 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
April 14, 2009
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 9:14 p.m.
ROLL CALL
Members Present: Debbie Goettel, Mayor; Pat Elliott; Fred Wroge; Tom Fitzhenry; and Sue
Sandahl.
Staff Present: Steven Devich, City Manager; Mike Eastling, Public Works Director; John
Stark, Community Development Director; Corinne Heine, City Attorney; and
Cheryl Krumholz, Recording Secretary.
Item # I DISCUSSION REGARDING VELMEIR COMPANIES/CVS PROPOSAL FOR 6528
PENN AVENUE (COUNCIL MEMO NO. 57)
Community Development Director Stark explained that the Velmeir Companies (acting as
developers for CVS) has requested that their request for an exception from the Penn Avenue
moratorium be continued to a later date. Velmeir has withdrawn this request upon the rescinding of
the moratorium ordinance at the April 14, 2009 City Council Meeting. It is Velmeir’s further intent to
apply for a Planned United Development (PUD) approval on the site. The representatives of
Velmeir, however, wish to determine whether there is sufficient support from the City Council to
warrant their expenditure of time and funds before submitting the PUD application.
Peter Coyle, Larkin & Hoffman representing Velmeir, stated general City Council guidance is
sought so if the PUD proceeds there are no surprises with the building footprints and layout.
Community Development Director Stark stated staff suggested changes to Velmeir to have
the CVS site plan to more closely meet the Penn Avenue Corridor guidelines but the CVS corporate
office was unwilling to make the changes. Changes to the staircase on Penn Avenue/66th Street
would be a tax increment financing (TIF) expense, not a Velmeir expense.
Council Member Fitzhenry asked about utility moving costs and the amount of new taxes
generated.
Community Development Director Stark replied the Hennepin County Assessor’s last
estimate is a net gain of $9500 a year in City property tax.
The property owner said they have retained the right to install a roof sign but acknowledged
the City aesthetically may not want it.
The Velmeir representative stated the estimated cost of $200,000 – 250,000 to demolish and
move the retaining wall and move utilities would be a cost to the City. Removing the electrical pole is
not included in the site plan.
Special Worksession Minutes -2- April 14, 2009
Mayor Goettel stated this does not appear to be a financially practical project for the City.
Council Member Elliott said the area is not pedestrian friendly now so the City can wait on
improving the area or have it done with the CVS building site. He added that he is more likely to
receive calls endorsing than against the CVS project.
Community Development Director Stark discussed the pedestrian .access being street level or
up in the development site.
Council Member Sandahl discussed parking requirements and green space.
The Velmeir representative stated that 62 parking stalls are required by CVS. He continued
that CVS may be willing to consider participating in utility and wall relocation costs.
Community Development Director Stark explained the HRA budget included substantial
funding for streetscape improvements in the Penn Avenue Corridor. The PUD would be for the entire
site if it is not subdivided.
The Velmeir representative stated the site will be subdivided with ARC Value Village.
Mayor Goettel expressed concern about starting the Penn Avenue revitalization correctly.
Council Member Fitzhenry discussed his concerns regarding recovering the City's utility and
retaining wall relocation costs through taxes and the loss of local businesses.
Council Member Elliott expressed concern regarding site line safety with a zero setback.
City Manager Devich stated, ultimately, a decision on the CVS project is the City Council's.
Staff's responsibility is to follow the corridor guidelines unless the City Council approves a different
approach.
Council Member Sandahl recognized the guiding principles of the corridor but that the
proposed development is an improvement. Her preferences were wider sidewalks, moving the
retaining wall back from the street, and more green space but not at the City's expense.
Mayor Goettel stated the project is not ideal and that CVS should consider paying the costs to
move the retaining wall.
David Gepner, Penn Avenue Corridor task force member, stated he hoped a compromise
could be reached with CVS making more concessions to meet what the community had in mind for
the area.
Council Member Wroge stated the CVS project is a vast improvement and a plan needs to be
created to move the retaining wall with a streetside, not elevated, sidewalk.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 10:15 p.m.
Date Approved
April 28,-2009
Cheryl Kr mho z
Recording Secretary
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