03-28-06 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
March 28, 2006
The meeting was called to order by Mayor Kirsch at 6:32 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Sue Sandahl; Fred Wroge; and
Bill Kilian.
Staff Present:
Steve Devich, City Manager; Mike Eastling, Public Works Director; Bruce
Palmborg, Community Development Director; Dan Scott, Public Safety
Director; Jim Topitzhofer, Recreation Services Director; Brad Sveum, Fire
Services Director; Tom Foley, Transportation Engineer; Chris Regis,
Finance Manager; Pat Smith, Community Development Manager; Christine
Costello, Community Development Coordinator; Pam Dmytrenko,
Assistant City Manager; Cheryl Krumholz, Recording Secretary; and Bryan
Shirley, City Attorney.
Steve Lindgren, Richfield Chamber of Commerce President, and Kevin Hart, Culver's
representative, addressed the City Council regarding the progress on a Culver's restaurant being
established in the City.
Mayor Pro Tempore Rosenberg led the audience in the Pledge of Allegiance.
M/Kilian, S/Sandahl to approve the minutes of (1) Special Concurrent City
Council/HRA/PlanninQ Commission Worksession of February 27.2006; (2) Special City Council
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March 28, 2006
MeetinQ of March 13. 2006; (3) Special City Council Worksession of March 14. 2006; and (4)
Reaular City Council Meetina of March 14. 2006.
Motion carried 5-0.
Item #1
Council Member Rosenberg thanked the Human Rights Commission for the success of the
recent Richfest event.
Mayor Kirsch stated the City Council direction to staff was to obtain drawings of a proposed
City Hall. Gary Tushie, Tushie Montgomery Architects, was invited to speak with the City Council
tonight regarding design concepts.
Mayor Kirsch said the City Council was vague in directing staff how to proceed so now the
City Council could explain directly to an architect.
Gary Tushie, Tushie Montgomery Architects, reviewed his background related to his being
part of the first City Hall Task Force and his involvement in an assessment of space needs at City
Hall. He added that he has worked on the City of Savage Campus, which includes administrative
offices, Police and Fire; and the City of Elk River City Hall.
Council Member Rosenberg 'said Mr. Tushie has also worked on the Richfield Shops at
Lyndale liquor store.
Mr. Tushie said his office is located in the Mainstreet building on 77th Street/Lyndale
Avenue in Richfield.
Council Member Kilian stated there appears to be a controversy in the process. He
referenced a recent Sun Current article. He clarified that he is not supportive of anyone site, and
after more thought, believes there should be a step back in the process for cost comparisons on
potential sites. It was his assumption, for the most part, there would be different costs for the same
building on different sites.
Mr. Tushie said site constraints would affect the cost.
Council Member Kilian asked if the current site has constraints. Because of needing
structured parking, the cost of a City Hall on the current site may be more costly than on a larger
site and also may not easily allow expansion.
Mr. Tushie said the current site has constraints due to its size.
Council Member Kilian said one of the task force's guiding principles was a cost component.
The current site may be marketable because it's by a park. From a cost perspective, a larger site
may be nicer.
Council Member Kilian suggested obtaining a cost comparison on various site selections.
One consideration is parking of Police vehicles in a climate-controlled protected area. His goal is to
get the most for the money.
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March 28, 2006
Council Member Kilian suggested stepping back on the process to get parameters. He has
what he considers reasonable questions and concerns to be addressed before making a decision.
He said a separate meeting between the City Council and task force may be helpful.
Council Member Wroge asked Mr. Tushie if new city halls need to be bigger or because of
technology, they could get smaller, especially for first ring suburbs with their boundaries set.
Mr. Tushie responded that he has not seen substantially smaller new city halls. The per
square footage has almost doubled because of enclosed garages so there is less square footage
for office space but more for other needs.
Council Member Wroge said the information received by the task force indicated, because
of technology and digital storage and people working from home, less space is needed. He
disagreed with needing a bigger building.
Mr. Tushie said the City Council's desired building footprint and site needs to be defined.
He assumed the current site was this City Hall plus the two homes.
Council Member Wroge said the task force made no assumptions. A new building could be
built on the current site and knock the old building down.
Council Member Wroge said he was confused and did not recall asking an architect to come
to discuss the City Hall issue with the City Council. The task force did what was asked of them and
then the process was suddenly stopped. Having this a non-controversial issue is exactly what he
wants. The task force recommendation is a fiscally responsible decision.
Council Member Kilian stated the reason this issue is before the City Council tonight is
because the task force has requested the City Council to take a vote on their recommendation.
There should try to be a unified City Council with a reasonable study of the issue.
Council Member Kilian continued that Council Member Wroge was a voting member of the
task force and has a bias, like every City Council Member. Real criteria needs to be developed so
a site can be determined. The current site can be used as long as the criteria is developed
objectively, not just from the task force but from everyone. There should be no fear to revisit the
issue. Whatever the outcome, the community will know it was challenged and the best site was
selected. He added he is not an advocate for anyone site.
Council Member Kilian explained the process used by the Transportation Commission
during the consideration of roundabout intersections at 66th Street/17th Avenue and 66th
Street/Portland Avenue. A professional who had no vested interest assisted in guiding the process.
He said he didn't feel this in the City Hall process and a four-month review was soon to make a
recommendation.
Council Member Wroge stated Council Member Kilian did make a statement on wanting the
American Legion site for a new City Hall. This is the second task force and it was not a four-month
process but closer to a two-year process. He said it was his impression that Council Member Kilian
just doesn't like the process and wants to stop it.
Council Member Wroge continued that originally he liked roundabouts but then had some
concerns. He visited Kansas to see roundabouts himself and decided when it was before the City
Council to support the roundabout at 66th Street/17th Avenue but not at 66th Street/Portland
Avenue. He did not go to the Transportation Commission and tell them he didn't like roundabouts
and ask them to restudy them. Instead, he waited until it came before the City Council for a vote.
Council Member Kilian stated he believes his questions are legitimate and he is asking to
have them answered. He has not asked to have the site changed.
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March 28, 2006
Council Member Wroge said answers have been given but the answers are not liked. If
there is building on park property, he said he would not support it so it appears systems are being
traded. Money for an architect should not be spent unless it's known what needs to be done.
Council Member Kilian requested the guiding principles be revisited and be considered from
his point of responsibility.
Council Member Sandahl asked about the timeframe of when the first task force determined
a new City Hall was needed and the second task force determined a site.
Rick Jabs, City Hall Task Force II Chair, responded that the original task force began in
August 2005. He agreed a worksession should be held to review each guiding principle in attempt
to come to a conclusion. The task force did a diligent job. The City Council said the task force
commitment was to have a new City Hall erected in three to five years. The site determination took
nine months. He said a futurist informed the task force that city halls were getting smaller. Also,
that the building could be used for another purpose.
Council Member Kilian said he never put down the task force's efforts and encouraged all
task force members to participate in the worksession.
Mr. Jabs said it will be hard to change directions and the thought process. He added that
City Council consensus is important.
M/Sandahl, S/Rosenberg to schedule a Special City Council Worksession with the City Hall
Task Force II and there should be no time constraints on the lenQth of discussion time.
Council Member Kilian suggested the Worksession be led by someone impartial and not
part of the City.
Council Member Wroge stated the task force met two times per month, not once a month
like other groups, and was only reviewing sites.
Council Member Sandahl asked about possible cost variations with different sites.
Mr. Tushie said that can be provided if the sites are identified.
Council Member Wrage asked about the current site requiring ramped parking, especially
with the available area to the south.
Mr. Tushie explained that there is not adequate site remaining when all components with a
Police vehicle garage are included. The existing footprint is not nearly large enough to
accommodate all uses.
Council Member Wrage said the garage could be on the bottom with all other uses on first
floor.
Mr. Tushie explained several building levels on structured parking would be necessary to
gain more site area.
Council Member Rosenberg stated she agreed to one more Worksession but there has to
be a limit to the number of meetings on this issue because she feels discussions will continue until
Council Member Kilian gets the answers he wants. She requested questions be prepared in
advance. Good people have done good work. She expressed support for the current site for a new
City Hall.
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March 28, 2006
Council Member Sandahl stated it is important for the City Council consensus to have
agreement and support. The issue is critical enough with the cost comparisons to have one more
meeting.
Mayor Kirsch asked about the sites to be considered.
Council Member Kilian said to see what sites pop out when the criteria is reviewed.
Council Member Sandahl said she is not willing to go back to the first step in the process.
The task force reduced the sites from 16 to 5 and suggested those are the ones to be reviewed.
Council Member Wroge explained the task force considered all sites in the City, then
narrowed to 16 sites because staff told the task force or by common sense that certain properties
should not be considered. Then the sites were reduced to 5, then to 3.
Mr. Jabs stated the December public meetings showed all 16 sites, narrowed to 5.
City Manager Devich clarified the direction of the City Council: staff should work with Tushie
Montgomery Architects to get a baseline cost comparison for similar City Hall facilities, including
Police and Fire, on five sites; and schedule a Special City Council Worksession of possibly three
hours with no time constraints.
Council Member Wroge requested the Worksession be scheduled when all City Council
Members can be present.
Council Member Kilian included an impartial facilitator should lead the Worksession.
Council Member Sandahl encouraged as many task force members as possible be in
attendance.
Council Member Wroge suggested a Thursday evening for the Worksession since the task
force is used to meeting on that day.
The City Council agreed the Worksession should be on a weeknight.
Mayor Kirsch said building a new City Hall is an important issue and there needs to be
common ground.
Council Member Kilian stated it is clear that all the City Council Members support the idea of
a new City Hall.
Motion carried 5-0.
Item #2
Mayor Kirsch amended the agenda, switching the order of Item 9 and 10 on the agenda.
M/Kilian, S/Sandahl to approve the aQenda as amended.
Motion carried 5-0.
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March 28, 2006
It m#3
A. Approved first reading of ordinance amendment to rezone southern tip of 1401 76th Street
West from high-density commercial to general commercial and set public hearing and second
reading for April 25, 2006 S.R. No. 56
B. Approved purchase of 13,500 square feet of wetland mitigation credits for Cedar Point storm
water pond in amount of $27,000 S.R. No. 57
C. Approved setting public hearing on April 25, 2006 to consider new on-sale intoxicating
Sunday liquor and tavern licenses for Jun Bo Chinese Restaurant, 7717 Nicollet Avenue
S. R. No. 58
D. Approved purchase of tandem dump truck (chassis from Astleford International Trucks in
amount of $65,480.46; box, chipper cover and snow fighting equipment from J-Craft in
amount of $59,298.14) for use by Street Maintenance Division in total amount of
$124,778.60 S.R. No. 59
E. Approved purchase of single axle dump truck (chassis from Astleford International
Trucks in amount of $57,533.43; box and snow fighting equipment from J-Craft in
amount of $57,373.68) for use by Street Maintenance Division in total amount of
$114,907.11 S.R. No. 60
M/Sandahl, SlWroge to approve the Consent Calendar.
Motion carried 5-0.
Item #4
None.
Item #5
Mayor Kirsch presented Staff Report No. 61 regarding consideration of canceling the March
28, 2006 public hearing regarding second reading of an ordinance to rezone 15 properties within 1-
494 Corridor to Mixed-Use Neighborhood.
Mayor Kirsch stated the Met Council has not finished their study of the City's
Comprehensive Plan amendment and their determination is needed before proceeding.
M/Kirsch, S/Kilian to cancel the public hearina on March 28. 2006 reaardina second readina
of an ordinance to rezone 15 properties within the 1-494 Corridor to the Mixed use Neiahborhood
(MU-N).
Motion carried 5-0.
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March 28, 2006
Item #6
Council Member Wroge presented Staff Report No. 62 regarding a second reading of
ordinance amendments to Richfield City Code Section 416 to define sign criteria for new Mixed-Use
Districts, 1-494 Corridor.
M/Rosenberg, S/Sandahl to close the public hearinQ.
Motion carried 5-0.
MlWroge, S/Rosenberg that this constitutes the second readinQ of Bill No. 2006-3
amendments to Richfield City Code Section 416 to define siQn criteria for new Mixed-Use Districts,
that it be published in the official newspaper and that it be made part of these minutes.
Council Member Sandahl asked about size distinctions in signage.
Community Development Manager Smith explained sign sizes are different for the zoning
districts.
Council Member Wroge asked about the timeframe on the sign ordinance review.
Community Development Manager Smith explained it should be finished in approximately
one year.
Motion carried 5-0.
Item #7
Council Member Wroge presented Staff Report No. 63 regarding a resolution amending the
Comprehensive Plan to encourage green community development principles for land use
designation in 1-494 Corridor for future developments.
M/Rosenberg, SlWroge to close the public hearina.
Motion carried 5-0.
MlWroge, S/Kilian that the followinQ resolution be adopted. that it be spread in the resolution
book and that it be made part of these minutes:
RESOLUTION NO. 9742
RESOLUTION AMENDING THE CITY'S COMPREHENSIVE PLAN
IN THE 1-494 CORRIDOR
Council Member Wroge expressed support for the resolution because the motives are good.
He hoped what is put in for green community concepts does not stop developers. When the 1-494
multi-use zoning changes were passed, it became almost not viable for Culver's to be in Richfield.
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March 28, 2006
Council Member Kilian suggested Culver's consider the east side of Richfield.
Motion carried 5-0. This resolution appears as Resolution No. 9742.
Item #8
Council Member Rosenberg presented Staff Report No. 64 regarding a resolution providing
for sale of $6,080,000 General Obligation Water and Sewer Revenue Bonds, Series 2006A.
M/Rosenberg, S/Sandahl that the followina resolution be adopted. that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9743
RESOLUTION PROVIDING FOR THE SALE OF
$6,080,000 GENERAL OBLIGATION WATER AND SEWER
REVENUE BONDS, SERIES 2006A
Finance Manager Regis stated the City is currently working with Ehlers & Associates to
complete a utility analysis, which includes reviewing future water and sewer needs and current and
future rates. An outcome of the analysis may be the need in the future to raise utility rates to help
cover the debt service payments.
Council Member Wroge asked about the reserve fund total.
Finance Manager Regis explained the current status of the water and sewer funds. He said
the City's cash fund reserve is healthy at $3-4 million plus and suggested not going below that
because Moody reviews balances which affects the City's Bond rating.
I
Council Member Wroge asked about the timeframe to reach the break-even point to replace
the water meters due to water lost from the old meters.
Public Works Director Eastling explained the pay back from water savings is not sufficient
for the replacement meters but staff time is reduced. Because the old meters are 20+ years old
technology, the company no longer supports them.
City Manager Devich stated some replacement at the Water Plant must be done. The work
should have been done sooner when more cash balance was available. A partial remodel was
done in 1990, but some of the plant is totally worn out.
Rebecca Kurtz, Ehlers & Associates, stated Moody will review reserves for the bond rating.
A reserve is needed for unexpected costs. Currently, the City has a very high bond rating.
Mayor Kirsch said the Water Plant is a valuable asset to the City.
Council Member Rosenberg stated City staff has been very helpful with addressing noisy
replacement meters on the west side of Richfield.
Motion carried 5-0. This resolution appears as Resolution No. 9743.
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March 28, 2006
Item #10
Council Member Kilian presented Staff Report No. 66 regarding a resolution regarding
Environmental Assessment Worksheet (EAW) for Cedar Point Commons project.
Council Member Wroge questioned the project description because the Met Council finding
indicates no future stages of redevelopment are planned. This is not accurate since it is known that
more development will occur.
John Dietrich, RLK-Kuusisto representative, explained this environmental assessment study
included the northern 30 acres and the specific impacts to the adjacent area, not the area to the
south of 66th Street. More development is anticipated in the entire Cedar land use study. The Met
Council will be kept updated as the concept plan for the southern area moves beyond that stage.
Council Member Wroge asked about water-related land use management district as it
relates to Mother's Lake and Richfield Lake.
Mr. Dietrich explained the proposed stormwater pond will provide improved water quality
and improved lakes.
Council Member Wroge asked about responses to residents' letters with concerns related to
the EAW.
Community Development Coordinator Costello explained the letters are combined with the
findings of fact and sent to the appropriate entities. Those who sent the letters are notified of this
process.
M/Kilian, S/Rosenberg that the following resolution be adopted. that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9744
RESOLUTION APPROVING NEGATIVE DECLARATION AND RECORD OF DECISION
CEDAR POINT COMMONS
Motion carried 5-0. This resolution appears as Resolution No. 9744.
Item #9
Council Member Kilian presented Staff Report No. 65 regarding a resolution approving the
Concept Plans for Cedar Point.
Mayor Kirsch stated the HRA approved the concept plans on March 20, 2006.
Gerald Klitz, Director of Retail Architecture, Ryan, reviewed the Cedar Point illustrative site
plans, concept sketches, elevations and sidewalk plans for Super Target, Home Depot and other
smaller retail spaces.
Council Member Wroge asked about the use of quick brick.
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March 28, 2006
Mr. Klitz explained the assembly was much quicker with this brick. The impact of low
frequency noise from the airport is currently being assessed and Ryan is working with Orfield Labs.
Council Member Wroge asked about the open area with the smaller retail spaces, which
doesn't stop the noise.
Mr. Klitz explained they are trying to have contiguous buildings to address noise but at some
point, it fails. The ballfield on the northern edge of the project is also open.
Council Member Sandahl said Mt. Calvary is also a buffer to noise.
Council Member Kilian added that it's uncertain what will happen with the noise.
Mr. Klitz said Orfield Labs will give an opinion on the construction type regarding the low
frequency noise impacts.
Council Member Wroge said the Super Target Store and land will be owned by Target.
Home Depot will be owned by Home Depot, and they will lease the land from Ryan. He said he
asked about the Cedar Liquor Store moving in Cedar Point if the roundabout at 17th Avenue/66th
Street doesn't help them. He said he was told Ryan wants to own the building and the land.
Mr. Klitz suggested Ryan Companies be asked questions regarding land ownership.
Council Member Rosenberg stated she did not want a plain, stark facade similar to the new
building on 66th Street/Xerxes Avenue.
Mr. Klitz explained how the fac;ade at Cedar Point was being handled. He also explained
the sidewalk system with landscaping.
Council Member Kilian asked about the landscaping throughout the year.
John Dietrich, Principal Landscape Architect, RLK, described the palette of trees, plantings
and bushes planned for the site.
Mayor Kirsch requested adequate bicycle racks be provided.
Mr. Klitz said a certain number is planned. He is working with staff on the bike path.
Mayor Kirsch acknowledged staff's long efforts to work with various groups to create a
wonderful gateway to Richfield.
Mr. Klitz said Cedar Point is a unique development with a contemporary design.
Council Member Sandahl asked about the landscaping and green area meeting the City's
guidelines.
Community Development Manager Smith said that will be determined and presented to the
City Council.
M/Kilian, S/Rosenberg that the following resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9745
RESOLUTION APPROVING CONCEPT PLANS
CEDAR POINT REDEVELOPMENT PROJECT
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March 28, 2006
Unidentified resident addressed the City Council regarding his concerns on the entrances to
the parking lot off 17th Avenue, including traffic congestion, pollution and noise.
Mr. Klitz explained how most traffic is expected to enter the development.
Mayor Kirsch said the big stores will dictate where trucks can go.
Council Member Wroge asked about trucks going to the north side of the Home Depot lot
onto Cedar Avenue so they can go to Bloomington Avenue to enter the Crosstown.
Community Development Manager Smith explained vacating that section of 63rd
Avenue/Cedar Avenue has been explored but not determined.
City Manager Devich provided an update on the State Bonding bill related to 17th Avenue,
which was not included in the Senate bill.
Council Member Kilian stated the City will be responsive to issues that crop up as a
detriment to the neighborhood in continuing efforts to protect the residential area.
Council Member Kilian stated there is only access to eastbound Crosstown at Bloomington
Avenue.
Mr. Klitz said they will work with staff to change the exit from the lot to Ceda-r Avenue but
there are grading elevation issues.
Mr. Dietrich said traffic is anticipated to return from the development to 66th Street.
Mayor Kirsch asked about the space between the parking lot and 17th Avenue.
Mr. Klitz explained there will be a 27' with a buffer/berm.
Motion carried 5-0. This resolution appears as Resolution No. 9745.
Item #11
Council Member Sandahl presented Staff Report No. 67 regarding a resolution authorizing a
Cooperative Construction Agreement between MnDOT and the City of Richfield to provide payment
by the City to the State of the City's share of costs for traffic control signal work on Lyndale Avenue
just south of 1-35W and storm sewer under 1-35W.
M/Sandahl, S/Rosenberg that the followinQ resolution be adopted. that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9746
RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ENTER INTO COOPERATIVE
CONSTRUCTION AGREEMENT NO. 89359-R WITH STATE OF MINNESOTA, DEPARTMENT
OF TRANSPORTATION.
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March 28, 2006
Public Works Director Eastling stated the storm sewer system is being upgraded. The traffic
control work is a shared cost.
Council Member Wroge asked the amount of the gas tax revenue received by the City.
Public Works Director Eastling explained the gas tax is available for construction purposes.
No bonding is being introduced.
Council Member Wroge said Lyndale Avenue is a City road and then questioned why the
City is responsible for improvements on Portland Avenue when that's a County road.
Public Works Director Eastling explained the County does not pay for streetlights, it's the
City's responsibility.
Motion carried 5-0. This resolution appears as Resolution No. 9746.
Item #12
Council Member Rosenberg presented Staff Report No. 68 regarding a resolution
establishing authority for Health Care Savings Plan for the Mayor and City Council Members at $25
per pay period.
M/Rosenberg, S/Sandahl that the followino resolution be adopted, that it be spread in the
resolution book and that it be made part of these minutes:
RESOLUTION NO. 9747
RESOLUTION APPROVING PERSONNEL POLICY FOR THE CITY COUNCIL ESTABLISHING A
POST RETIREMENT HEALTH CARE SAVINGS PLAN
Council Member Sandahl explained this plan does not cost the City any money but saves a
little on the employer portion of Social Security on this amount.
Council Member Wroge asked about other versions of the plan.
City Manager Devich stated the City does not contribute any money to the plan for any
employee.
Motion carried 5-0. This resolution appears as Resolution No. 9747.
Item #13
Council Member Sandahl presented Staff Report No. 69 regarding consideration of a final
layout for reconstruction of 66th Street and Portland Avenue with acquisition of four single-family
homes on the south end of the east side of 6601 block of Portland Avenue for redevelopment.
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March 28, 2006
Public Works Director Eastling reviewed the updated proposed layout reconstruction and
development area, including the four single-family homes proposed to be purchased. These four
properties are not needed for the roundabout construction. Hennepin County staff has expressed
an interest in participating in the purchase of the homes by providing funding if the City Council
chooses to proceed and if the owners are willing sellers.
M/Sandahl, S/Kilian to approve the finallavout for the reconstruction of 66th Street and
Portland Avenue with the acquisition of four sinole-familv homes on the south end of the east side
of the 6601 block of Portland Avenue for redevelopment.
Council Member Sandahl explained there was an earlier City Council Worksession
discussion on this issue. The residents of the four homes were in the audience at that time and
indicated an interest in being bought out.
Heidi Lindenflesner, 6633 Portland Avenue, stated she was under the impression from
previous meetings regarding this intersection that her property was a take, so she started making
some life changing decisions and then later learned the take was not going to happen. She
continued that she was originally against it but is now ready. She expressed appreciation to the
City Council for considering the homeowners.
Mayor Kirsch stated the potential Hennepin County funding changes the City's approach to
the area. Final answers are difficult because other agencies are involved.
Council Member Wroge expressed concern because he voted against the roundabout at this
intersection since it appeared more driven by development than safety. He said he supports the
buyout of the four homes if Hennepin County comes through with funding. He said he doesn't want
this to cost the taxpayers and he wants willing sellers. He doesn't want to get caught up in a legal
battle or with a different deal if the homes suddenly become more costly.
Council Member Wroge continued he wanted different versions on how to develop the area
and that housing should be affordable.
Mayor Kirsch stated the City Council will receive updates as the project progresses.
Community Development Director Palmborg said the approach to the project is before the
City Council and the redevelopment is done under the HRA.
Public Works Director Eastling stated the Hennepin County funding is contingent on willing
sellers but could be held up by someone who says no to their buyout.
Council Member Kilian stated Hennepin County is giving back their own tax dollars but if
Richfield can get these funds to use and not some other city, the buyout should proceed.
Development is with a higher use so the value can more than double. Construction methods are
not the way to address affordability.
Council Member Wroge disagreed that less land is being taken, not less busines~. T & T
Automotive, BP Amoco and Mr. Tire are being lost and now more single family homes being taken.
Council Member Kilian stated the roundabout intersection option is the lowest land taking
level.
Motion carried 5-0.
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March 28, 2006
It m #14
Council Member Wroge presented Staff Report No. 70 regarding consideration of an
agreement with Tim Duoos for exchange of land and easements needed to make improvements to
Richfield Lake, while providing sufficient stormwater capacity to accommodate any future
redevelopment of site on 64th Street and Lyndale Avenue.
MlWroge, S/Sandahl to authorize the Mayor and the City Manaaer to enter into an
aareement with Tim Duoos for the exchanae of land and easements needed to make improvements
to Richfield Lake. while providina sufficient stormwater capacity to accommodate any future
redevelopment of his site on 64th Street and Lyndale Avenue.
Public Works Director Eastling stated Tim Duoos did sign the agreement tonight. An
updated version is distributed to the City Council tonight. All parties involved want a quality project.
Public Works Director Eastling explained the project including the wall to be designed and
constructed at Mr. Duoos expense. The stormwater pond, pipe and walking path design are paid
for by MnDOT.
Motion carried 5-0.
Item #15
Council Member Kilian presented Staff Report No. 71 regarding consideration of a 30-month
lease between the City of Richfield and Hat Trick Hockey, Inc., consisting of 1,900 square feet of
space located in the Richfield Ice Arena, 636 East 66th Street.
M/Kilian, S/Sandahl to approve the 30-month lease between the City of Richfield and Hat
Trick Hockey Inc.. consistina of 1.900 square feet of space located in the Richfield Ice Arena, 636
East 66th Street.
Recreation Services Director Topitzhofer explained the rationale for the current Hat Trick
Hockey lease rate. '
Council Member Wroge asked about the business's financial statement.
Recreation Services Director Topitzhofer said no recent statements have been reviewed,
they were last looked at when the lease was renewed the first time. '
Council Member Wroge asked about the 2005 gross sales. He said he's not sure if Mr. Tom
Sachs of Hat Trick Hockey is just a good businessman and is seeing if someone will bite on this
lease rate. Sales may be down so far that he may not be able to fulfill the lease.
Council Member Wroge asked about the cost of maintaining the common areas (plowing,
lights) being included in the rate.
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March 28, 2006
David. Leonidas, Hat Trick Hockey accountant, said Hat Trick's statement is a fiscal year not
a calendar year.
Recreation Services Director Topitzhofer said all utilities are pro-rated and in the lease since
the beginning.
Council Member Wroge questioned the square footage rate to include maintenance. The
net amount is to the landlord.
Ice Arena Facilities Manager Payne clarified the lease terms. Mr. Sachs pays electricity but
currently no other maintenance fees. He did pay the first six-years. Whether the business is there
or not, the Ice Arena lot needs to be plowed.
Council Member Wroge stated this is the second time the lease has been reduced. Hockey
is hurting but the City doesn't want an empty space either. He said he believed that the current
square footage rate is not a legitimate amount for Richfield.
Recreation Services Director Topitzhofer explained Mr. Sachs first lease rate requested was
a $1100 per month but the City was not comfortable with that amount. If the proposed lease is
rejected, Mr. Sachs will move his business and the City has lost revenue. The space would be
difficult to fill with another retailer or use.
Mr. Payne said Hat Trick has been a good tenant since the 1990s and sales are down.
Council Member Wroge stated the City built the building for Hat Trick and it hasn't been paid
for yet. This appears to be an ultimatum. He said he supports business but Mr. Sachs could just
be a shrewd businessman. He suggested delaying a decision and having Mr. Sachs come before
the City Council.
Mr. Leonidas stated he may not be at liberty to publicly state Mr. Sachs business. There are
no financial statements but tax returns are available. City Manager Devich has all the tax returns.
Recreation Services Director Topitzhofer said when Mr. Sachs made the lease reduction
request, the financial information was provided but not on a year-to-year basis.
Mr. Payne said the lease was renewed in 2003 but no statements have been requested.
Council Member Kilian questioned if this is a legitimate price for the space. Bids are not
required on this process but it may be a good thing to do in the future as a business process. A
decision is needed and the City does have space to lease.
Council Member Wroge stated the net should be compared to the net plus taxes plus utilities
plus common area. Gross sales are important but rent should try to be kept to 15% of gross sales.
Council Member Kilian said the lease could be supported this time but be up for bid next
time. He asked about the going rate based on the ability to pay.
Council Member Wroge stated he is not looking for the profit but gross sales.
City Manager Devich explained Mr. Sachs will move the business to Lakeville if the lease is
not renewed. The City is trying to give him lead time on a decision. The City Council could defer
action to the April 11 meeting if more information is necessary. If the space is vacant, there is a
revenue hole in operations.
City Manager Devich stated staff is reacting to information from Mr. Sachs and has
presented the issue to the City Council with some options. This is a policy maker decision, not a
staff decision.
Council Meeting Minutes
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March 28, 2006
Mr. Leonidas said sales have been down over the past two years but there has been some
improvement this year.
Recreation Services Director Topitzhofer stated various payments have paid for the building;
the City has not given Mr. Sachs a building. Hat Trick provides a good service and makes the Ice
Arena more special.
Council Member Sandahl expressed support to renew the lease and the longer the term, the
better. If Hat Trick isn't there, income is lost. This is a good service to the hockey program.
Motion carried 4-1. (yVroge opposed.)
Item #16
Council Member Sandahl presented Staff Report No. 72 regarding consideration of
appointments to the City advisory commissions.
M/Sandahl, S/Kilian to appoint persons to fill the vacant terms on the City advisory
commission.
ADVISORY BOARD OF HEALTH
Name
Jennifer Schultz
Louise Souta
Term Expires
January 31, 2009
January 31, 2007
Motion carried 5-0.
Council Member Sandahl encouraged residents to apply for the advisory commissions
because a number of openings are available.
Item #17
City Manager Devich reported on the following:
· Legislative progress on the State bonding bill and eminent domain bill
· National Incident Management Training for the City Council and certain City staff as
mandated to receive federal funding
M/Rosenberg, S/Sandahl that the following claims and pavrolls be approved:
Council Meeting Minutes
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March 28, 2006
u. S. BANK
AlP Checks: 148893 - 149146
PAYROLL 28771 - 29100; 41056 - 41057
TOTAL
$ 1,357,170.75
$ 468,386.62
$ 1,825,557.37
Motion carried 5-0.
c~~
Recording Secretary