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01-06-97 agendaCITY OF RICHFIELD MONDAY, JANUARY 6, 1997 REGULAR CITY COUNCIL STUDY SESSION 7:00 P.M. COUNCIL CHAMBERS AGENDA CALL TO ORDER ROLL CALL 1. 7:00-7:15 P.M. DISCUSSION OF DONATIONS FOR FOURTH OF JULY COMMITTEE STUDY SESSION LETTER NO. 1 II. 7:15-7:45 P.M. DISCUSSION OF OUTSIDE SERVICE OF INTOXICATING LIQUOR/WINE/3.2 MALT LIQUOR AT RESTAURANTS IN CITY STUDY SESSION LETTER NO. 2 III. 7:45-8:15 P.M. DISCUSSION OF ADDENDUM TO JANUARY 1995 FINAL ENVIRONMENTAL IMPACT STATEMENT ON 1-35W TO ADD THIRD LANE FOR HIGH OCCUPANCY VEHICLES FROM 1- 494 TO 46TH STREET IN MINNEAPOLIS STUDY SESSION LETTER NO. 3 IV. 8:15-9:00 P.M. DISCUSSION OF STATUS OF AIRPORT RELATED ISSUES STUDY SESSION LETTER NO. 4 9:00 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 861-9702. 0 CITY OF RICHFIELD, MINNESOTA Study Session Letter No. 4 Agenda January 6, 1997 Issue Statement: Status of airport related issues. Background: Recent developments regarding airport issues include the following: • Runway 4-22 Recent discussions with Met Council has revealed that 1) the Met Council must review any proposal by MAC to construct the taxiway complex needed to use the extended runway for noise redistribution purposes; 2) no such taxiway project is contained in the MAC's 1997 CIP; and 3) the 4-22 project is contained in the MAC's 1999 CIP. Due to the uncertainty regarding whether (or when) the MAC will construct the taxiway complex and use Runway 4-22 for noise redistribution purposes, Richfield does not believe that litigating its petition for review at this time would be a productive use of resources of the Court or litigants. As a result, Richfield will seek a "tolling" agreement that enables the lawsuit to be dismissed without prejudice, subject to the right to seek judicial relief if the MAC should decide to proceed with the noise redistribution component of the project. • Termination of Lease Agreement: Relocation of Recreational Aspects A task force of 12 people has been created to study various possibilities of relocating recreational activities formerly located on the Rich Acres athletic fields. Task force members consist of youth and adult field sport representatives. In addition, City consultant George Watson, of Brauer & Associates, is analyzing all available park and open space to determine how additional demands can be met. Options being considered relate to rescheduling play time; upgrading facilities (i.e. additional lighting for night use); and the building of new parks. A task force may soon be created to look at various golf course options. Representatives of golf leagues will be studying possibilities of how to relocate or replace the Rich Acres Course. • Final EIS of the North-South Runway Staff and consultants are continuing review of the Draft EIS for the north-south runway. The Final EIS is expected to be issued within six months. • MSP Mitigation Committee The 1996 Dual Track Legislation required the Metropolitan Airports Commission to form a committee to develop a noise mitigation plan for MSP. The MSP Noise Mitigation Committee was charged with evaluating existing programs, determining future noise exposure levels, and developing recommendations to be considered by the MAC. The Metropolitan Airports Commission, City, Met Council, Northwest Airline and MASAC representatives met on eight occasions to discuss airport issues. The MSP Noise Mitigation Program was finalized in November. On December 17, 1996 the State Advisory Council on Metropolitan Airport Planning (SACMAP) discussed this document. Objections to the program were made by Richfield and Minneapolis representatives. By the end of the meeting, there was no consensus of views regarding the mitigation program. A formal comment by SACMAP members must be submitted to the Legislature within 60 days. The recommendations have been forwarded to the State Advisory Council on Metropolitan Airport Planning and will be ultimately sent to the Legislature. • Meetinas Recently, a meeting of former and current elected officials was held with Sandy Grieve of the MAC. Approximately 11 people were in attendance to discuss the history surrounding airport issues and to broaden the understanding of the many facets to the current situation. Russ Susag was in attendance to represent current views by the City. • New Ford Town and Rich Acres Acquisition The most recent status report for acquisition and relocation is as follows: 1) Phase I through III-the "appraisal reports received" portray three remaining properties. Of the nine homeowners in condemnation: four have settled and closed, two are appealing their condemnation awards, and the remaining are receiving offers or going through acquisition closings. 2) Phase V-includes apartments (62 tenants), two businesses, and a church. Vacant lots and two parks will be in Phase VI. The Open House for Phase V is tentatively scheduled for January 9 at City Hall. • Review of the Presentation to the Twin Cities Airport Task Force (September 19. 1996) by Representative Jean Wagenius and Senator Jane Ranum) and Related Airport Analysis Both of these sets of documents refer to the importance of competitive airfares in obtaining more international cargo and passenger flights at MSP as well as promoting more travel and tourism for the area. It was stated that an airport's ultimate capacity is determined by the number of parallel runways... what does this mean to MSP now that it has been determined that a third parallel runway will not be built? It means that the airport is left with very limited capacity. MSP was compared to Detroit quite extensively within these reports. Detroit is rapidly expanding its airport, which consists of an international tradeport (6,700 acres) located next to the all-cargo Willow Run Airport (2,300 acres). MSP simply does not have this capability, and consequences to downsizing growth is obvious. A very important question is asked in these documents, j what will be the impact to the MN economy when MSP is dominated by one carrier and the airport capacity is limited? A following attachment by Minnesota Senate Majority 40 Leader, Roger Moe, and many pointed news articles refer directly to the, fare disparity it allows. FAA models consistently have shown there is a strong inverse relationship between real yields and traffic, "When costs are down, fares are down, traffic is up, revenues are up, and profits are up." The May 1996 commerce report stated that 80% of the 256 metropolitan areas it surveyed showed export gains in 1994. "One cannot overstate the importance of exports in creating jobs and economic growth in cities throughout the country," stated Commerce Undersecretary Stewart Eizenstat. Of the top 25 metropolitan areas in 1994, exports declined at MSP by 1.6%. Export industries and technology intensive activities have been seen to pay higher wages, almost one-fifth higher than those of other manufacturing industries. A comparison of change in per capita income may reflect the increase of this type of job in Detroit (1989: Detroit area- $15,780 Minneapolis area-$16,342; 1994: Detroit-$23,185 Minneapolis-$21,362). The MAC asks the question, if the cargo business is expanding so rapidly, why isn't any of it coming to the Twin Cities? While they say that the facility has the capacity to handle more flights to and from foreign cities, almost all of the Midwest's foreign cargo comes in and out of Chicago. MAC stated that it would like Northwest, which currently flies just one all-cargo route out of the Twin Cities every week, to increase its use of the airport for international trade. It was countered however, that as NWA fills its planes with high paying passengers, the room for cargo goes down. Attachments are included. Recommended Motion: Discuss current airport issues. Basis of Recommendation: It is important for the Council to provide direction to staff regarding airport concerns. Alternative Recommendation: Defer discussion to another date. Discussion/Decision Mode: This matter will be discussed at the Study Session of January 6, 1997. Respectfully submitted, James . Prosser City Manager JDP:cak U) J J ow ^O NLLN L.1. 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CD -0 0 co 00 a) 0 (6 U N (D N fn N O 0 Q d 0 d O O O N Q C) r C> CL r O 0 O o N v7 U v7 U Q N C > C "u Q O a) F- ,O C O LV Cl) U v7 d O m N U O C . C U ? Rf C CL U O a) cn O X W , 75 E N _ L O Mn O C ' 3 O 0) J 0 ?i Q U M = CL a) ) _ Q 41 ? y a + W J F0- N rn cu a I. MSP is dominated by one carrier resulting in monopoly pricing. (Star Tribune April 16, 1996. Study says the price of Twin Cities flights soar above average.) (Stan Tribune, April 16, 1996. Critics say airport cost study didn't get off ground.) (StarTribune, April 25, 1996. Minnesotans indeed pay more for air fare, DOT says.) (Star Tribune, May 5, 1996. Airfares at MSP are high because Northwest's the only way to fly.) (U.S. DOT report, April 23, 1996. The low cost airline service revolution.) II. Limited space at MSP has allowed NWA to continue to increase its percentage of total operations. A. An airport's ultimate capacity is determined by the number of parallel runways. 1. MSP has two parallel runways; a third parallel will not be built at MSP. The proposed North-South runway is not an independent runway. Operations can only occur from the south. 2. Detroit has three parallel runways and a fourth parallel is planned for 1998. (AirCommerce, October 30, 1995.) (House Research Memo, November 20, 1995. Airport capacity for all major metropolitan airports including MSP, Detroit and Seattle.) B. Evidence that capacity at MSP is limited: 1. Average annual growth of operations at MSP from 1972-1995 was 3.1%. 2. For the next twenty-five years average annual growth at MSP, even with the addition of a North-South runway and a new terminal, will be no more than 1.2%. (House Research Projections, April 1, 1996.) 3. Domestic traffic is nationally is expected to grow 3.8% between 1996 and 2007. The FAA expects traffic growth to be substantially higher on international routes than on domestic services, averaging 5.3% annually during the next dozen years. ( Aviation Week & Space Technology, March 11, 1996) 4.Annual operations at MSP have increased on average 17,000 per year between 1990-1995. I0 2 5. With addition of a North-South runway and a new terminal, annual projected increases at MSP are 6,300 per year for the next twenty-five years. (House Research Operations Chart, March 15, 1996.) III. What is the impact to Minnesota's economy when MSP is dominated by one carrier and airport capacity is limited? A. Lack of capacity at MSP compels NWA to expand its operations at Detroit and Seattle. 1. Air traffic, both passenger and cargo, are expected to expand rapidly. (Aviation Week & Space Technology, March 11, 1996.) 2. Asian air traffic and airport facilities are expanding rapidly. (New Airports in Asia (memo), March 15, 1996.) (Aviation Week & Space Technology, August 14, 1995.) (Journal of Commerce, September 19, 1995.) (American Shipper, August 1995. Transatlantic skies open wider.) (Journal of Commerce, February 27, 1995. Trade fuels airport expansion; developing nations move to keep up with soaring exports.) (Airline Outlook, September 4, 1995.) (Airline Outlook, January 22, 1996.) 3. Because of its' airport capacity, Detroit has significantly more international flights than MSP. (Senate Research Memo, June 7, 1996. Total and International Operations at MSP and Detroit.) 4. The increase in international flights tracks closely with increases in foreign. owned businesses in the region. (Crain Detroit Business, April 29, 1996. Economy set for takeoff.) 5. NWA has chosen Detroit as its Asian hub. (Flight International, August 3, 1994. In Defence of the hub.) (Goldman Sachs, January 1995, p.9. Northwest Airlines Corporation.) 3 6. Trade agreements have been negotiated with both Japan and China to NWA's A benefit. (Star Tribune, April 27, 1996. Northwest Airlines - Air China agree to alliance.) (Mpls./St. Paul City Business, April 5, 1996. Cleared for takeoff.) 7. NWA is the only American passenger carrier with its own cargo fleet. The Asian market is the fastest growing cargo market in the world.. NWA flies only one all-cargo route out of MSP. Minnesota businesses truck the great majority of their cargo to Chicago. (Mpls./St. Paul City Business, April 5, 1996. Cleared for takeoff.) 8. Increased airport capacity at Detroit means more jobs at Detroit. 20,000 new jobs are projected as a result of recently announced expansions at Detroit Metropolitan airport. (Crain Detroit Business, July 31, 1995. Northwest to hire 150 at Metro.) (MSP Airport News, May 23, 1996. Detroit plans $1.6 billion air terminal.) 9. Jim Mokudi, Vice President, Marketing and Sales/Japan for NWA says "Seattle is getting to be a gateway city for Asia for us." (Seattle Times, April 3, 1995. Northwest Airlines sees its future in Asia, with Seattle as gateway.) { (Northwest Airlines, May 30, 1996. Northwest airlines to inaugurate the first U.S. carrier service from North America to Jakarta.) B. It is in Minnesota's interests to encourage Minnesota businesses that export. 1. Businesses that export earn 20% more than businesses that don't. (Crain Detroit Business, April 29, 1996. Economy set for take-off.) (Foreign Policy, Winter 1995, p. 5. Export our way to prosperity.) 2. A recent study shows that our exports have declined while Detroit's have increased. (Star Tribune, May 31, 1996. 80% of U.S. metro areas had export gains in 1994.) (St. Paul Pioneer Press and Dispatch, June 1, 1996. New export data flattering but skewed.) 3. Detroit's new China route promises significant economic growth for Michigan. (Aviation Week & Space Technology, May 20, 1996. New China service elevates Detroit Metro's gateway role.) 4 . C. Lack of capacity at MSP allows NWA to reduce its hubbing ratio at MSP. NWA's hubbing has been cited as the financial benefit that justified Minnesota's monopoly pricing. NWA's current hubbing ratio is 57.8%. NWA says that it is reducing its hubbing ratio to 44%. (Thomas Schreier to Jeffery Hamiel, January 30, 1996.) (House Research, September 11, 1995.} D. Businesses may choose not to locate and expand here because of the higher cost of doing business. (Wilbur Maki to the Star Tribune Editorial Board, March 20, 1996.) E. Seventy-five percent of all state travel revenue is business related; the figure is much higher. than the national average indicating suppressed travel for pleasure market. People who might otherwise travel for pleasure will be discouraged from doing so. Where air fares are more competitive more money is actually generated in revenues and profits because of volume. (Senator Roger Moe to Governor Arne Carlson, April 26, 1996.) (Aviation Week & Space Technology, March 11, 1996.) F. NWA's dominance and the MAC's limited expansion plans are huge pluses if NWA owners choose to sell. (City Pages, November 22, 1995. Let's Make a Deal.) • , NC .U?. rar 20 9-^, 13:4 r .03 MSP Airport Expansion, Star-Tribune Board of Editors, March 20, 1996 1. MAC economic study purpose and rationale Question: Why is the study of economic impact confined to the airport site--the terminal and the resident airline, rather than focusing on the local and regional businesses using the airport and the importance of the airport facilities and services to them? Implications: The economic impact study focuses largely on the local economic implications of changes in land-use associated with the MSP airport alternatives. Nowhere does it assess the specific industries and activities in the region's economy to fully understand and appreciate their requirements for quick and economic air access to domestic and international markets. ImPortance: 1) The case for major airport expansion purportedly is based on the MAC- . sponsored study of MSP airport alternatives. However, the report on the economic impacts of the MSP airport alternatives focuses on airport site activities,-not the businesses and industries dependent on the services these activities provide. The reported direct economic impacts, for example, come solely from jobs and wages generated by on-site airport flight activity and passenger services. The indirect impacts are the secondary jobs and wages created as a result of the direct spending of the on-site job-holder wages. The induced impacts originate from the real estate development that again is linked to the airport site activities. The studies thus focus on the airport as if it were the engine of regional economic growth. The larger the airport work force, according to this rationale, the larger the impact. Importance: 2) The export-producing businesses using the airport are the region's basic job creators, not the airport or airport tenants. The MAC study thus ignores the real generators of economic growth--the clusters of businesses that constitute the region's economic base and that are dependent on air access to their markets and supply sources. We have no way of figuring what the growth of these industries means for future airport expansion. In effect, MAC opts for a form of "land banking" by the forced likelihood of its future expansion into the region's densely-populated residential areas that are part of what was once Theodore Wirth's dream of a beautiful "city of lakes" for all to treasure. 2. Short view of MSP airport planning Question: Why are the MAC recommendations confined almost entirely to the short view of airport planning? Implications: Use of the short view precludes examination of the risk and uncertainty associated with each MSP airport alternative. Importance: MAC's case for major airport expansion based on its economic study actually rests on the short view of airport planning. But a downtown business fighting hard to improve the productivity of its work force does not need the studies we have so far. We already know that the shorter the time-distance to the airport, the greater is the potential productivity of the individual air traveler, based, of course, on the assumption, however, that the existing airport would remain readily accessible with negligible increase in travel time with major expansion. We can speculate, also, that a new airport might attract a few downtown businesses, although they may leave anyway, replaced by new and expanding businesses more suited to a downtown location than the ones that left. Nor does the dominant airline at the MSP terminal need the studies. We already know that by restricting the number of gates, airline profits go up. Finally, we again drag out the "red herring" of Northwest Airlines leaving MSP, as we have done before. Again, we would not need the studies for those succumbing to the airline's threat. In each case, 2 WSP Airport Erpwrsion the short view of MSP airport planning is one that responds to the immediate pressures and incentivcs of airport planning bodies without taking into account the risks and uncertainties • associated with the decision outcomes. 3. Longview of M; SP airport planning Question: What options are implicit or envisioned in the MAC recommendations for responding to unanticipated changes in market conditions affecting air transportation? Implications: Between now and 2020 when an expanded MSP is to be fully operational more flights are projected. We. have a problem with the projection: We're almost there already-- 475,000 versus 520,000 operations. If the projections are too low, as they now appear, the 3,000 acre.airfield is much too small to handle large increase in air traffic. Strategies for handling such unplanned for events are at best only hypothetical, which MAC proponents embellish with glib references to all sorts of future technologies for coping with increased air traffic. Importance: Local and state governments, with a fixed geographic space, invariably need the studies to deal with the long view in their infrastructure planning. The businesses being affected by airport relocation in the short view have more than one option for dealing with slightly greater travel time to and from a given destination, if this were the case, or even the added competition from a larger number of gates. Eventually, they, too, depend on the availability of world-class air access for the region's export-producing businesses to their various market origins and destinations. The building of a new global airport for this region is inevitable if our businesses are to remain competitive in their domestic and global markets, while, at the same time, we protect long-established neighborhoods from buyouts that carry a high civic and human cost. 4. MSP demand projections Question: What plans does MAC have for directly assessing the changing demands for air transportation services that, in turn, affect tenant's demands for the airport facilities and services? If no plans, does this mean that MAC will continue to rely on NWA for its demand projections? Implications: The MAC studies repeatedly present undocumented projections of future air operations, freight, and passengers. When pressed for documentation, their staff readily admit that the projections already underestimate demand. This admission appears unimportant to the recommendations, which suggests that the projections have a logic of their own that is never fully disclosed to the public. Importance: Digging deeper into the MAC report we find that each airport alternative has only one scenario rather than the two or more that are necessary to represent the likelihood of future conditions differing from the baseline projection, and the projection model itself is severely flawed. Suddenly projecting a dramatic drop in the rate of growth in airport activity suggests to me that our economy has become the prisoner of what Northwest Airlines prefers for its growth path. More fundamentally, however, the projection procedure is essentially a statistical exercise. It presents an illusion of rigor. We still lack an understanding of the role of air transportation and a world-class air transportation node in a technology-intensive metropolitan area economy. MSP population change actually depends on job opportunities in all industries, but particularly the air transport-dependent ones, and the earnings they generate. The model ignores these sorts of linkages. 5. A strategy to compete in planning regional transportation infrastructure Question: Is the upcoming Citizens Leagues report lamenting the lack of a state or regional strategy to compete applicable also to the MAC recommendations? Expansion plications: Every indication, including the most recent comments of MAC's director, clearly int to the dominance of all MSP airport planning by. Northwest Airlines. What is good for NV4'A presumably is good for the Twin Cities--at best, a questionable non-strategy, and at worst, a position that can seriously backfire in widespread lack of public confidence in government. Importance: The increasing export-dependency of Minnesota's technology-intensive manufacturing and related industry clusters demands a strategy for planning and building a regional infrastructure that encourages and supports successful, globally competitive business N` enterprise. We now have a large manufacturing sector as a dominant export-producing activity. Our markets are both domestic and global and they are highly valued. Our successes in these markets depend upon world-class access to them. This issue casts the discussion of MSP airport alternatives into a futuristic mold in terms of 1) the air transportation requirements of the emerging MSP regional economy that extends well beyond the Metropolitan Region into the Dakotas, Wisconsin, and Iowa, and 2) the relative merits of the MSP airport alternatives in fulfilling these requirements. What are the implications, for example, of failure to meet the projected levels of activity among the region's air transportation-dependent businesses, projected . and potential, because of the lack of air access? How will the lack of a new airport affect the local economies of the larger region of which MSP is the singular connection to export markets? We have no way of figuring this from the given information. We lack a constructive vision of the likely future growth and development of Minnesota's economy, as well as that of the large economic region served by MSP, and the ways in which our state's infrastructure strategy would change if air access were restricted or delayed. 6. Self-fulfilling prophecy Question: By giving Northwest Airlines essential control over MSP airport planning outcomes, what assurances does MAC offer that this will not hold the region's economic growth hostage to NWA's preferred growth path for its MSP operations? Implications: Restricting the supply of gates and rationing aircraft assures higher airline profits from their MSP operations than if a new airport were built. Importance: Businesses considering expansion or relocation are malting these decisions now based on their "rational expectations" of the future. Knowing that an airport cannot effectively handle the added load of an expanding regional economy is reason enough for many businesses to locate or expand in another metropolitan region that already has and, with high certainty, will continue to have world-class air access. Yes, we need quality time to get quality numbers for what is likely the most important economic decision we face for years to come. 7. Bottom line The study provides little, if any, support for the MAC recommendations, which seem to have a logic of their own, never fully disclosed to the public. The study focuses on the airport site activities--terminal and airline-rather than the businesses using its services. It presents one set of questionable risk-fret projections for each airport alternative. Its strongest support comes from those with an understandable short view of how the location and the use of the airport relate to their business. Finally, it lacks explicit connection to any sort of a strategy for planning and building Minnesota's transportation infrastructure. W. R. Maki, 4520 Oxford Avenue, Edina, MN 55436 • 0 ROGER D. MOE MAJORITY LEADER Senator 2nd District Route M3. Bo: 96A Erskine, Minnesota 56535 Phone: (218) 5742216 Room 208. State Capitol 75 Constitution Avenue SL Paul. MN 55155-1606 Phone:(612)296-2577 April 26, 1996 The Honorable Arne H. Carlson Office of the Governor 130 State Capitol St. Paul, MN 55155 Senate State of Minnesota Dear Governor Carlson: - I am writing regarding the recent report by the U.S. Department of Transportation showing the substantial gap between typical air fares charged around the nation and the much- higher fares charged at Minneapolis-St. Paul Airport (MSP). The fare disparity was a disturbing 23 percent in 1988, but has grown to an intolerable 42.3 percent in 1994. This translates into a $117 surcharge for the typical round trip ticket.. Last year alone the additional cost to MSP passengers was more than $692 million above the national average at major airports. I am sure you share my concern and would like to know why Minnesota's air fares are so high. What can be done to bring our fares more in line with other urban centers in the United States? It is estimated that 75 percent of all air travel revenue generated from Twin Cities originations is business related. The additional cost to our Minnesota business community due to overly high fazes was approximately $520 million. That is close to three times more than the expected yearly savings to Minnesota businesses resulting from the fabled workers compensation reform bill of 1995. In my mind, several significant questions about the adverse impact on our business climate are raised by these high fares charged at MSP: • What is the full impact' on the cost of doing business in Minnesota? • How much of a deterrent has this become for businesses considering locating in Minnesota? • What is the Metropolitan Airports Commission doing about this situation? These are just a few of the questions that come to mind, and I am sure you share the same concerns. .600 1 Governor Carlson Page 2 attributable to Northwest Apparently much of the blame for these -air faze increases is Airlines (NWA), which has built a fortress hub in the Twin Cities. Governor, you are well-aware that Minnesota government, on behalf of its taxpayers, has been very generous to NWA. Special legislation in 1991 provided a $350 million low-interest loan to NWA. In 1994, an additional $50 million was provided to the airline for construction of a hangar in Duluth and the Hibbing reservations center. This year NWA was the prime beneficiary of a tax law change for lease facilities, projected to reduce taxes by $2.5 million yearly. Also this year, the Legislature took the advice of you and Northwest Airlines to accelerate the end of the Dual Track Process and make the commitment to the current airport location. That decision certainly will help Northwest Airlines limit its cost of operations, and we should expect those savings to be passed on to the customers at MSP. Beyond a doubt, Minnesotans have been good partners for NWA, but it does appear that this partnership is more than a bit one-sided Even though the DOT report indicates that some Twin Cities fares have actually decreased, that claim cannot be made when it comes to the cost of commercial service to our regional centers. As a regular user of Northwest Airlines and regional air service to MSP, I am subjected to round trip coach air fares of.$488 to Fargo, $448 to Bemidji, $588 to Thief River Falls and $528 to Grand Forks. Again, Governor, something needs to be done. You were a leader in stabilizing the financial partnership between NWA and the State of Minnesota, and I look to your leadership again in dealing with the artificially high air fare costs being absorbed by Minnesota businesses and residents. If this involved nearly a $700 million tax increase rather than a fare hike, I suspect we would never hear the end of it. I appreciate your attention to this matter, and extend to you the cooperation and assistance of the Minnesota Senate in any efforts you might choose to initiate. Sincerely, ?• kj?c Ro D. Moe Minnesota Senate Majority Leader cc: U.S. Senators Paul D. Wellstone, Rod Grams; U.S. Representatives Gil Gutknecht, David Minge, Jim Ramstad, Bruce F. Vento, Martin Olav Sabo, William P. Luther. ="-ollin Peterson, James L. 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POD^? ;r C i a CA oG .7 oC .a S a AC .a P OG ..i - Y+ r oc$$ co ••-? ~~ a QQ < s y. fn fn O N r ? Ul • < V N O O O v O O 9 OIL Y e 00 'r r? N N N N ?? N 0. U Yi ' o ? Y < V < y ? ? ? _ y ? b y s ?? • Ll .9 0 O Z w qqq YY i O N 0 a O C o l w 3 ? O?L $ a, a 7 yp M di V 7 x^C A d ? N en • i T p 3 ?y 5 8 H V I 0 0 Q m 3 r N D A Q W t ? o ? N y8 T O w M Q ? Y1 CITY OF RICHFIELD, MINNESOTA Study Session Letter No. 3 Agenda January 6, 1997 Issue Statement: Consideration of the addendum to the January 1995 Final Environmental Impact Statement on 1-35W to add a third lane for high occupancy vehicles from 1-494 to 46th Street in Minneapolis. Background: The Minnesota Department of Transportation (MnDOT) has proposed to extend the High Occupancy Vehicle lane on 1-35W from 1-494 to 42nd Street in Minneapolis (See attached map). To do this, the January 1995 Final Environmental Impact Statement (EIS) on 1-35W must be amended to describe the impacts of this scaled back proposal that was not included in the original EIS. The project will cost $75 million as compared to the $1.0 billion estimate for the preferred alternative identified in the previous final environmental impact statement. The Council is being asked to revise its comment on the adequacy of the Final EIS as amended in identifying possible environmental effects of the proposed project. The reduced scale of the propoal will require much less right of way acquisition in Richfield • and eliminate light rail transit, consistent with major objections raised by the City in its previous comments dated March 13, 1995. The details of the plan including details of the mitigation of any impacts will be identified in the review of layouts immediately following this environmental review process. A review by City staff indicates the project will: • enhance safety in the 62 Crosstown section by separating traffic on 62 Crosstown from the traffic on 1-35W; • keep regional trips on the regional highway network and off of local streets; • require some right of way acquisition; • promote public transit and carpooling; and, • not correct all 1-35W deficiencies. City staff have raised Richfield's concerns about the proposal with MnDOT staff. Staff concerns include: • acquisition of land needed for storm water ponding; • right of way implications for Richfield; • the retention of eastbound 62 access to Lyndale Avenue; . • options for a transit hub in the Crosstown area since the Minnegasco site will not be acquired for a transit hub; • • the need for improvements along 66th Street and Lyndale Avenue in the vicinity of I- • noise; • the importance of sensitive design of noise and retaining walls; and, • the potential for redevelopment opportunities. 35W; • traffic impacts on local streets in response to the proposed improvement; • the potential for bike/pedestrian trails crossing I-35W at the Soo Line, at 66th Street and at Portland Avenue, and along I-35W on surplus land, especially west of Portland Avenue; • the opportunity to demonstrate the performance of high speed bus service and carpooling in the I-35W corridor. Particularly, consider the possible addition of a transit station in the vicinity of the 62 Crosstown Commons as an alternative to the transit hub previously proposed for the Minnegasco site. Most of the issues have been addressed in the addendum. Any remaining concerns are described in the attached draft resolution. The MnDOT will host an Open House on the addendum to the Final EIS and the plans for the third lane project on Tuesday, January 14, 1997 from 4-8 p.m. at the Richfield Lutheran Church, 60th Street and Nicollet Avenue, Minneapolis. Richfield residents are encouraged to attend the Open House. • City staff is proposing the following public involvement efforts for this project: • A notice that the City Council will review the project was placed in the December 1996 issue of Your City newsletter. • A mailing list of 1,000 owner residents living along 1-35W from 76th Street to Portland Avenue will receive an invitation from MnDOT to attend the January 14, 1997 Open House. • The City staff will have a booth at the Open House to explain the City's proposed position on the 1-35W improvements including the Richfield Lake area plan. • City staff will give presentations on the proposal to both the Planning Commission and the Community Services Commission prior to Council action being requested at the January 27, 1997 Council meeting. If the project is approved, work south of 66th Street could begin as soon as 1999. Recommended Motion: None. For discussion purposes only, although the Council will be asked for guidance on the proposed public involvement process for reviewing the 1-35W improvement. Basis of Recommendation: 1. Although the MnDOT proposal doesn't correct all 1-35W deficiencies, it is generally consistent with the City's position on 1-35W: • by keeping regional trips on the regional highway network; • by providing an HOV lane rather than light rail transit; and, • by promoting high speed bus service and carpooling. 2. The proposal can be built under existing budgetary limits. 3. Refinements in the design are possible to lessen negative effects on Richfield. Alternative Recommendation: 1. Consider several minor refinements to the MnDOT proposal designed to reduce negative impacts on Richfield. Revisions in the design may improve its acceptability to the City. The Council will have another opportunity to review and comment on design issues apart from commenting on the addendum to the Final EIS. 2. Consider the alternative of removing eastbound 62 access to Lyndale Avenue to save two homes from being acquired for right of way in Richfield. 3. Consider continued support for the City's preferred alternative, the Diamond Lane Alternative. This may not be appropriate without additional highway funding being identified. 0 4. Consider opposing the proposal. Discussion/Decision Mode: No decision is needed at this time. A decision will be requested at the January 27, 1997 Council meeting. The Council will also have an opportunity to review the layout for the proposed project where design issues can be discussed. Respectfully submitted, i Jam . Prosser City i nager JDP:cak 0 0 RESOLUTION NO. RESOLUTION COMMENTING ON THE ADDENDUM TO THE JANUARY 1995 FINAL ENVIRONMENTAL IMPACT STATEMENT FOR AN INTERIM THIRD LANE ON 1-35W FROM 1-494 TO 42ND STREET IN MINNEAPOLIS, MINNESOTA WHEREAS, an addendum has been issued by the Minnesota Department of Transportaion to the January 1995 Final Environmental Impact Statement for an interim third lane on 1-35W from 1-494 to 42nd Street in Minneapolis, Minnesota; and WHEREAS, comments on the addendum to the final environmental impact statement have been requested by the Minnesota Department of Transportation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that: 1. The addendum adequately addresses the environmental impacts of building the third lane project. 2. The negative impacts of the proposed improvement are less than those identified for the preferred alternative with the exception of providing adequate capacity on the regional highway network to protect local streets from being used by regional trips. 3. The amount of additional right of way needed in Richfield for the project is greatly reduced from the level identified for the preferred alternative in the January 1995 Final Environmental Impact Statement. 4. The addendum responds to requests from local businesses to retain eastbound access on Trunk Highway 62 to Lyndale Avenue. 5. The addendum addresses stormwater drainage and treatment issues for Legion Lake, Richfield Lake and Wood Lake. It also provides the City of Richfield the opportunity to explore redevelopment possibilities in the area of Richfield Lake. 6. The addendum discusses the need for improvements to local streets where they intersect with 1-35W such as Lyndale Avenue and 66th Street. 7. The noise analysis indicates the possible need for noise walls on the west side of 1-35W in the area of Wood Lake. The City of Richfield is concerned that any noise walls or retaining walls are sensitively designed to blend into the community. 8. The proposal provides for a transit component with the provision of a high occupancy vehicle lane. 9. The proposal can further enhance transit in the 1-35W corridor by promoting a high speed bus service and by considering adding a bus stop in the area of the 62 Crosstown Commons. 10. The design of freeway crossings need to provide for pedestrians and bicyclists. 11. The extension of the third lane from 1-494 will add great urgency to reconstructing the 1-494/1-35W interchange. Adopted by the City Council of the City of Richfield, Minnesota this 27th day of January, 1997. Martin J. Kirsch, Mayor ATTEST: Thomas P. Ferber, City Clerk • i Existing 121 a 0 z 1 62 10 Proposed 121 a 0 z 62 E.60THA)tL E. 60 TM - NOT TO SCALE Ail? m LANES 62 CITY OF RICHFIELD, MINNESOTA Study Session Letter No. 2 Agenda January 6, 1997 Issue Statement: Discussion of the outside service of intoxicating liquor/wine/3.2 malt liquor at restaurants in the City. Background: Up to this point, the City has not allowed any establishments holding any type of alcohol license (intoxicating liquor, wine, 3.2 malt liquor) to conduct outside service of alcohol to their patrons. The only exceptions would be at veteran organization events held in conjunction with the celebration of the Fourth of July or the occasional service of 3.2 malt liquor at some church festival celebrations within the City. There is currently no written City policy forbidding the sale of alcohol outside the premises of a licensed establishment. State statute leaves the decision up to the City as to whether sales may occur outside the immediate building. They refer the issue back to the City by stating that the "licensed premises is the premises described in the approved license application" and that "a retail license to sell any alcoholic beverage is only effective for the compact and contiguous space specified in the approved license application." City ordinance only speaks about the "licensed premises" without defining what area is encompassed by the license premises. The issue was first raised by an application for outside service at Champps restaurant. After consultation with the City Council, it was determined that outside service would not be appropriate. Staff's primary concern regarding the outside sale of alcohol is the inability of the establishment to monitor as closely who may have access to it. It appears it may be more difficult for establishments to monitor alcohol outside of the building and that it could fall into the hands of minors. A secondary concern is that outside alcohol service may generate larger and noisier crowds than food service alone. This could become a problem if an establishment is located near a residential neighborhood. Establishments, obviously, would have to carefully monitor noise so that does not occur. There should also be discussion as to whether outside service of alcohol should occur at any licensed intoxicating liquor/wine/3.2 malt liquor establishment or only at a specific location with a specific type of license. Recommended Motion: ?40 No formal action is required at this meeting. If the City Council would like to pursue the outside sale of alcohol at licensed establishments, discussion should include: • Amending the City's current ordinance to better define "licensed premises." • Discuss the requirements that would be necessary to keep alcohol from getting into the hands of minors, as well as the possibility for noise problems to exist. • What type of licensed establishments may serve alcohol outside its building. • Zoning requirements regarding permitted location of outside service areas. Basis of Recommendation: Staff has received requests to consider amending City ordinance and policy to allow for the outside sale of alcohol at licensed establishments in the City. Alternative Recommendation: The Council may decide to do nothing and to leave the current ordinance as it now is. This would, also mean that the current, unwritten City policy would continue to prohibit the outside sale of alcohol within the City. Discussion/Decision Mode: This matter is presented to the City Council for discussion and direction. Respectfully submitted, JamI,,// Prosser City Manager JDP:cak Richfield City Code 1200.11, Subd. 4 does not proceed with reasonable dispatch to ready the premises, the council may rescind the action granting the license. Such action shall not be taken, however, without giving the licensee at least eight days` mailed notice of the time and place of a hearing on the proposed recession. Subd. 4. Licensed person and premises. Licenses shall be issued to the applicant only. A license shall be issued only for the premises described in the application. Subd. 5. Reports to state. The clerk shall, within ten days after the issuance of a license submit to the commissioner the full name and address of each person granted a license, the trade name, the effective license date, and the date of expiration of the license. The clerk shall also submit to the commissioner any change of address, transfer, cancellation, or revocation of any license by the council during the license period. 1200.13. Persons ineligible for license. No license shall be granted to or held by any person: (a) who is ineligible for the license under state law; (b) who is under the age of 21 years except those persons to whom section 1200.27, subdivision 5 applies; (c) who is not of good moral character and repute; (d) who, if an individual, is an alien; (e) who, within five years prior to the application for such license, has been convicted of any willful violation of any law of the United States, the State of Minnesota, or any other state or territory, or of any local ordinance, with regard to the manufacture, sale, distribution, or possession for sale or distribution of intoxicating liquor, or whose liquor license has been revoked for any willful violation of any such laws or ordinances; (f) who is a manufacturer or wholesaler of intoxicating liquor; (g) who is directly or indirectly interested in any other establishment in the city to which a license of the same class has been issued under this sec- tion; the term "interested" as used in this paragraph means and includes any pecuniary interest in the ownership, operation, management or profits of such an establishment; (h) who, if a corporation does not have a manager who is eligible pursuant to the provisions of this section or whose corporate stock is owned or subject to the beneficial interest of any person or the spouse of any person ineligible for a license under clauses (b), (c), (d), (e) and (f) of this subsection; or (i) who is the spouse of a person ineligible for a license under clauses (d), (e) or (f) of this subsection and who, in the judgment of the city council, is not the real party in interest or beneficial owner of the business operat- ed,or to be operated, under the license. 340A.410 LIQUOR 1002 licensee to sell alcoholic beverages, the personal representative is authorized to con- tinue operation of the business for not more than 90 days after the death of the licensee. Subd. 4. License posting. A retail license to sell alcoholic beverages must be posted in a conspicuous place in the premises for which it is used. Subd. 4a. Notice posting. (a) A premises licensed for the retail sale of alcoholic bev- erages and a municipal liquor store must post and maintain in a conspicuous place within the licensed premises: (1) One or more signs which read: "THE MAXIMUM CRIMINAL PENALTY FOR DRIVING WHEN UNDER THE INFLUENCE OF ALCOHOL IS $700 OR 90 DAYS IN JAIL OR BOTH. MIN- NESOTA STATUTES, SECTION 169.121. THE MAXIMUM CRIMINAL PEN- ALTY FOR CRIMINAL VEHICULAR HOMICIDE IS $20,000 OR TEN YEARS IMPRIS ONMENT OR BOTH. MINNESOTA STATUTES, SECTION 609.2l.- (2) One or more signs which read: "THIS ESTABLISHMENT IS PROHIBITED BY LAW FROM SERVING ALCOHOLIC BEVERAGES TO A PERSON WHO IS UNDER 21 YEARS OF AGE J OR OBVIOUSLY INTOXICATED. MINNESOTA STATUTES, SECTIONS 340A.502 AND 340A.503." (b) A conspicuous place is a location clearly visible to the customers. (c) The signs must be at least 12 inches wide by eight inches high, with letters at least one inch high in clear contrast with the background. Subd. 5. Gambling prohibited. (a) No retail establishment licensed to sell alcoholic beverages may keep, possess, or operate, or permit the keeping, possession, or operation on the licensed premises of dice or any gambling device as defined in section 349.30, or permit gambling therein except as provided in this subdivision. (b) Gambling equipment may be kept or operated and raffles conducted on x _. licensed premises and adjoining rooms when the use of the gambling equipment is authorized by (1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory Act, Public Law Number 100-497, or (3) a tribal-state compact authorized under section 3.9221. (c) Lottery tickets may be purchased and sold within the licensed premises as.f authorized by the director of the lottery under chapter 349A. Subd. 6. Racial discrimination; clubs. No retail license to sell alcoholic beverages may be issued or renewed by a municipality or county to a club which discriminates against members or applicants for membership or guests of members on the basis o race. Subd. 7. License limited to space specified. A retail license to sell any alcoholic bev . ' erage is only effective for the compact and contiguous space specified in the appro?r license application. Subd. 8. Copy of summons. Every application for the issuance or renewal of into cating or nonintoxicating liquor licenses must include a copy of each summons recei by the applicant under section 340A.802 during the preceding year. Subd. 9. Coin-operated devices. Coin-operated amusement devices may not- made available in establishments licensed solely for the off-sale of intoxicating or municipal stores which sell only at off-sale. An establishment holding a combinati. on-sale and off-sale license or a municipal liquor store which sells at on-sale and off which makes coin-operated devices available shall keep such devices to the grey extent practicable in that area of the establishment where on-sales are made. History: 1985 c 305 art 6 s 10,• ISP1986 c 3 art I s 39, 1987 c 152 art I s 1.- c 381 s 4, 1989 c 334 art 6 s 5, 1991 c 178 s 1; 1991 c 249 s 12 340A.411 LICENSE RESTRICTIONS; 3.2 PERCENT MALT LIQ. LICENSES. Subdivision 1. On-sale licenses. On-sale nonintoxicating liquor licenses ma 1 1 340A.101 LIQUOR 982 of the state for civic, fraternal, social, or business purposes, for intellectual improve- ment, or for the promotion of sports, or a congressionally chartered veterans' organiza- tion, which: (1) has more than 50 members; (2) has owned or rented a building or space in a building for more than one year that is suitable and adequate for the accommodation of its members; (3) is directed by a board of directors, executive committee, or other similar body chosen by the members at a meeting held for that purpose. No member, officer, agent, or employee shall receive any profit from the distribution or sale of beverages to the members of the club, or their guests, beyond a reasonable salary or wages fixed and voted each year by the governing body. Subd. 8. Department. "Department" is the department of public safety except as otherwise provided. Subd. 9. Distilled spirits. "Distilled spirits" is ethyl alcohol, hydrated oxide of• ethyl, spirits of wine, whiskey, rum, brandy, gin, and other distilled spirits, including all dilutions and mixtures thereof, for nonindustrial use. Subd. 10. Exclusive liquor store. "Exclusive liquor store" is an establishment used exclusively for the sale of intoxicating liquor except for the incidental sale of 1CC uor with intoxicatin li so in f i b i , g q g or m everages x quor, tobacco, 3.2 percent malt l drinks, liqueur-filled candies, cork extraction devices, and books and videos on the of alcoholic beverages in the preparation of food, and the establishment may off. recorded or live entertainment. "Exclusive liquor store" also includes an on-sale -o combination on-sale and off-sale intoxicating liquor establishment which sells food fo . on-premise consumption when authorized by the municipality issuing the license. Subd. 11. Farm winery. "Farm winery" is a winery operated by the owner of a nesota farm and producing table or sparkling wines from grapes, grape juice, other friu bases, or honey with a majority of the ingredients grown or produced in Minnesota; Subd. 12. General food store. "General food store" is a business primarily engag in selling food and grocery supplies to the public for off-premise consumption. Subd. 13. Hotel. "Hotel" is an establishment where food and lodging are regul .. furnished to transients and which has: (1) a resident proprietor or manager, (2) a dining room serving the general public at tables and having facilities for sea ing at least 30 guests at one time; and (3) guest rooms in the following minimum numbers: in first class cities, 50; in.. and class cities, 25; in all other cities, 10. kk, Subd. 14. Intoxicating liquor. "Intoxicating liquor" is ethyl alcohol, distilled, f ? mented, spirituous, vinous, and malt beverages containing more than 3.2 percent- S alcohol by weight. ' I . ..:- .; Subd. 15. Licensed premises. "Licensed premises„ is the premises described ln approved license application. In the case of a restaurant, club, or exclusive liquor licensed for on-sales of alcoholic beverages and located on a golf course, "licensed p W wises" means the entire golf course except for areas where motor vehicles are r parked or operated. :F. . Subd. 15a. Low alcohol malt liquor. "Low alcohol malt liquor" is a fermented` beverage containing two percent or less of alcohol by weight. Notwithstanding any h or rule to the contrary, if either, (a) the term "low alcohol" appears on the label o r ; beverage container, or (b) a brewer has provided written certification to the dep of public safety establishing an alcoholic content of two percent or less by weigh further label shall be required on that container. } Subd. 15b. Liqueur-filled candy. "Liqueur-filled candy" is any confectionery' ._ taining more than one-half of one percent alcohol by volume in liquid form ? intended for or capable of beverage use. 1 Subd. 16. Malt liquor. "Malt liquor" is any beer, ale, or other beverage made 1 7. o? tb tc ni CITY OF RICHFIELD, MINNESOTA Study Session Letter No. 1 Agenda January 6, 1997 Issue Statement: Discussion of donations for the Fourth of July Committee. Background: The Fourth of July Committee has fewer funds to continue celebrations the City of Richfield has come to enjoy in past years. A water bill insert was sent to water customers in the City soliciting donations to the Fourth of July Committee. This revenue will help defer the cost to the Fourth of July Committee and Richfield will maintain its high quality of festivities for this holiday. With two of the three sections of the billing completed, over $1,000 has been donated. The Fourth of July Committee is recording all donors names and amounts so they can be properly acknowledged. Recommended Motion: No formal action is being recommended at this time. Basis of Recommendation: The City Council requested an update on Fourth of July donations. Alternative Recommendation: None. Discussion/Decision Mode: This item is placed on the January 6, 1997 City Council Study Session agenda. Respectfully submitted, Jame Q. Prosser City Manager JDP:cak •