05-26-09 Worksession
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
May 26, 2009
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 5:34 p.m.
ROLL CALL
Members Present: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom
Fitzhenry.
Staff Present: Steven Devich, City Manager; Mike Eastling, Public Works Director; John
Stark, Community Development Director; Kristin Asher, City Engineer;
Christine Costello, Community Development Coordinator; and Cheryl
Krumholz, Recording Secretary.
Item # I DISCUSSION REGARDING HOUSING PROPOSAL FOR VACANT CANDLEWOOD
PARCEL AND SOUTHERN PORTION OF FORMER PUBLIC WORKS GARAGE
MEMO NO. 89)
Community Development Director Stark stated Accessible Space, Inc. (ASi) and Twin City
Christian Homes (TCCH) are considering the development of two housing projects. The first is an
accessible, affordable 51-unit housing project for very low-income (30% AMI) seniors age 62 or
older. The second housing project is a proposed 15-unit project for persons with physical disabilities
to live independently in the community. In order to develop the site for housing, a change in
rezoning (from “C-2 General Commercial to “MU-R Mixed Use Regional”) and a Comprehensive Plan
amendment will need to be completed. Before expending great deals of time and money on
preparing an application, ASi/TCCH requested an opportunity to present their proposal to the City
Council in order to get preliminary input from the Council and discern local support for their proposal.
Community Development Director Stark also discussed the request by ASi/TCCH for land
donation on heavily reduced land prices as part of the HUD evaluating criteria for “local financial
support.”
Community Development Director Stark stated further that a compensation option for a
potential land donation could be creating a Housing TIF District which would guarantee the City
Council/HRA receiving back value of the properties. The developer is not requesting TIF assistance.
Dan Billmark, ASi representative, provided background on the organization and proposed
development projects.
Nancy Starr, TCCH representative, provided background on their developments in the Twin
Cities and their role as property management agent for the proposed projects.
Special Worksession Minutes -2May 26, 2009
-
Mr. Billmark discussed the two HUD funding programs submissions, Section 202 and Section
811, which the development will make. The financial feasibility of the projects is somewhat
dependent in City and HRA financial support of ASi/TCCH.
Council Member Wroge expressed concern with giving the land away since there was a
verbal commitment for the old garage site land sale proceeds to pay off the bond debt for the new
maintenance facility.
Community Development Director Stark stated the Housing TIF District could be used to pay
the bond debt.
City Manager Devich said the property does not currently pay property taxes.
Rebecca Kurtz, Ehlers & Associates, explained the preliminary base market value of the
properties, estimated tax revenue generated, and potential tax increment that could be applied as a
debt service payment.
Mayor Goettel questioned the contamination status of the sites.
Community Development Director Stark explained clean-ups resulting from the 77th Street
construction and the need for a Phase II assessment.
Council Member Wroge questioned the legality of changing the zoning to potentially
accommodate this project when a previous project could not happen on the site because the zoning
requirement was not being met.
Community Development Director Stark stated changes are a policy decision and a City
Council prerogative.
Council Member Elliott requested a cost benefit analysis.
Community Development Director Stark discussed the marketing strategy to develop the
sites. He added there is a timeframe needing to be met by ASi/TCCH for submitting to the HUD
funding programs.
Mr. Billmark explained that if the HUD determination for funding in December does not
include this project, the agreement with the City is null.
Community Development Director Stark stated the Housing TIF District would proceed after
the HUD award. The City Council and HRA could give preliminary approval.
Council Member Sandahl stated the proposed project was a good use of the land and a good
service to the community but wanted to see the cost benefit analysis.
Mayor Goettel agreed with Council Member Sandahl in wanting to recover costs.
Council Member Fitzhenry said the project was a good fit for the neighborhood.
Council Member Wroge stated he was open to reviewing the project but needed the value
return analysis because there is an obligation to get as much money as possible to pay off bond
debt.
Council Member Elliott expressed reluctance to tie up the properties that have no immediate
value to the City. He said the property tax generated is not a return on investment.
The City Council consensus was to proceed with the proposed project with a cost benefit
analysis.
Item #2 DISCUSSION REGARDING ARTERIAL ROADS STUDY (COUNCIL MEMO NO. 90)
Special Worksession Minutes -3- May 26, 2009
City Engineer Asher stated the Transportation Commission is nearing completion of the
Arterial Roads Study which will produce design concept recommendations for the Council's
consideration on Portland, Nicollet, Lyndale and Penn Avenue arterials. The Commission's
preliminary recommendation is to convert all four arterials to three-lanes. Hennepin County prefers
the three lane section with across-lane section and is willing to work with the City.
Jack Broz, HRGreen representative, made a PowerPoint presentation (City Clerk's File No. C-
451) regarding the arterial roads study.
Council Member Wroge stated that homeowners are more important than a bike trail so there
should be the ability to park in front of your own home. He added that not parking. on the street is
causing homes to become rental which deteriorates the neighborhood.
City Engineer Asher discussed parking is viewed as a community value, which the
Transportation Commission did not view as precluding bike trails. Hennepin County requires.a good
reason why parking is needed in certain areas. The purchase of right-of-way on the shoulder and
possibly losing some front yard space may be necessary as a result of needing more road width to
accommodate parking.
Council Member Fitzhenry expressed concern regarding traffic flow and. Sunday parking
impacts.
City Engineer Asher discussed the funding process when the study is complete.
Council Member Sandahl stated that Hennepin County was supportive of the three lane road
due to decreased crash data and slower traffic.
Council Member Wroge said he liked the three lanes and suggested alternative signage for
parking be considered.
Council Member Sandahl requested staff provide data to support the inability to park in front
of their homes leads to single family homes becoming rental property along the roads under review in
the study.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:55 p.m.
Date Approved: June 9, 2009
Cheryl K mhol
Recording Secretary
City Manager