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01-26-10 agenda packetCITY OF RICHFIELD, MINNESOTA TUESDAY, JANUARY 26, 2010 SPECIAL CITY COUNCIL MEETING CITY HALL EXECUTIVE CONFERENCE ROOM 6700 PORTLAND AVENUE 5:30 P.M. AGENDA Call to order Roll call 1. Interview of persons interested in serving on City advisory commissions (Council Memo No. 4) Adjournment SPECIAL CITY COUNCIL WORKSESSION CITY- HALL COUNCIL CHAMBERS 6700 PORTLAND AVENUE 6:00 P.M. AGENDA Call to order Roll call 1. Presentation by Michael Development and St. Croix Real Estate regarding potential development of Woodlake Plaza (Council Memo No. 5) Notes: 2. Demonstration of new Supervisory Control and Data Acquisition (SCADA) utility system and discussion of possible capital investments at water treatment plant (Council Memo No. 6) Notes: Adjournment REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7:00 P.M. AGENDA INTRODUCTORY PROCEEDINGS Call to order Roll call Open forum (15 minutes maximum) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: Pledge of Allegiance Approval of minutes of (1) Special City Council Closed Executive Session of January 6, 2010; (2) Special City Council Meeting of January 9, 2010; and (3) Special City Council Worksession of January 12, 2010 COUNCIL DISCUSSION 1. Council discussion • Hats Off to Hometown Hits Notes: AGENDA APPROVAL 2. Council approval of agenda CONSENT CALENDAR 3. Consent Calendar contains several separate items, which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of resolution authorizing 2010 social service agency funding recommendations of certain human service agencies S.R. No. 18 B. Consideration of approval of resolution authorizing dispatch and use of City equipment and .services by City Manager or designee in emergency situations S.R. No. 19 C. Consideration of approval of resolution authorizing acceptance of all grants and donations received by Richfield Recreation Services Department in 2009 S.R. No. 20 D. Consideration of approval of resolutions authorizing submittal to Hennepin County for Transit Oriented Development Program Grant and Minnesota Department of Employment and Economic Development Redevelopment Grant Program for acquisition for redevelopment transit improvements and streetscape improvements throughout community S.R. No. 21 ` E. Consideration of approval of resolution authorizing acceptance of additional $1500 grant from Wal-Mart Corporation for funding Richfield Police canine unit S.R. No. 22 F. Consideration of approval of closing Parking Project Capital Project Fund and transferring residual assets to City Hall Project Fund S.R. No. 23 Notes: 4. Consideration of items, if any, removed from Consent Calendar Notes: RESOLUTION 5. Consideration of resolution expressing support for statewide Complete Streets Policy Staff Report No. 24 Notes: OTHER BUSINESS 6. Consideration of appointments to City advisory commissions Staff Report No. 25 Notes: 7. Consideration of bid minutes/tabulation and award of contracts as recommended by Stahl Construction for new Richfield Municipal Center Staff Report No. 26 Notes: CITY MANAGER'S REPORT 8. City Manager's report Notes: 9. Claims and payrolls Open forum (additional 15 minutes if more time needed after first Open Forum and by majority vote of the City Council) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: 10.Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. CITY OF RICHFIELD, MINNESOTA Office of City Manager January 21, 2010 Council Memorandum No. 4 The Honorable Mayor and Members of the City Council City of Richfield Subject: Advisory Commission Interviews (Council Agenda Item No. 1) Council Members: The interviewing of two advisory commission applicants is scheduled for Tuesday, January 26, 2010 at 5:30 p.m. in the Executive Conference Room in City Hall. An updated vacancy list is attached. Approval of commission appointments is scheduled for the January 26, 2010 Regular City Council meeting. Please contact me if you have any questions. R s ectfu y submitted, 1~ St .Devi City M Hager SLD:cak Attachment E-mail: Department Directors Assistant to the City Manager 0 r, 0 N O 0 00 N W_ U Z a V a Z O N cN G O U r r O cn N L_ ~ M W ~' ~ ~ ~ ~ I- ~ E ~ N L ~ N ~ E L a "~ _ .-. 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O ~ ~ (~ LL = ~ E E E E L L L L L Q~ ~F'+ ~ ~ +~+ .r.'r C C C C C ~`i~~~~~ U J U CITY OF RICHFIELD, MINNESOTA Office of City Manager January 21, 2010 Council Memorandum No. 5 The Honorable Mayor Y- and Members of the City Council Subject: Woodlake Plaza (Worksession Agenda Item No. 1 ) Council Members: On October 27, 2009 Michael Development and St. Croix Real Estate made a presentation at a City Council Warksession regarding their proposed development at 6401 Lyndale Avenue. At that Worksession, members of the City Council requested that the developers provide more detailed information regarding their proposal. As a response to that request, Michael Development and St. Croix Real Estate have submitted a detailed project proposal (attached) with supporting documentation..,.. Included in this proposal are the following: ^ A description of the history of the existing retail center; ^ An explanation of the difficulties the owners have experienced in their recent .efforts to market/lease retail space; ^ A description of the proposed multi-family housing..project and the financing that is being sought; ^ Maps of the general area, comprehensive planning in the area and zoning in the area; ^ Architectural drawings of the proposed project; ^ A market study and supplemental market study; ^ A sources and uses statement showing project funding; and ^ Tax Increment Financing projections. The developers will be in attendance at the January 26, 2010 City Council Worksession to further discuss their proposal and address any questions or comments from Council members. Resq~ectf~rlly sub Manager ' Attachments ,~`e- SLD:cak Attachment Email: Department Directors Assistant to the City Manager ~icnae~ 2177 Youngman Avenue, Suite 180 St. Paul, MN 55116 (651)698-3452 (651)699-6433-fax January 15, 2010 Mayor Goettel and Members of the City Council City of Richfield PROPOSED DEVELOPMENT Dear Mayor Goettel and Council Members: We have been the owners of Woodlake Plaza Shopping Center located at 64~' and Lyndale Avenue South for over 17 years and are pleased to present a proposal for a new housing development to replace the existing center. This proposed 90-unit rental housing development is the result of several years spent exploring numerous alternative uses and was a difficult decision; in addition to asking for City assistance in the form of a housing tax increment district, the owners need to assume substantial risk and make a substantial cash investment as well. The enclosed report provides a detailed history of our efforts to date as well as detailed financial and architectural information on the proposed project. To summarize the current situation and opportunity, we would ask you to consider the following: • This center is physically and structurally obsolete • Despite extensive leasing efforts by the owners and a major regional leasing agent, the center is currently 49 percent vacant • The surrounding area has declined significantly; vacant and boarded Lyndale Garden Center, vacant Kmart store, vacant/competing retail immediately adjacent to the center, etc. • The owners are asking that the increased taxes from the proposed development be captured and applied to the cost of the project • The owners have worked with City staff and the City's legal and financial consultants prior to submitting this proposal for your consideration. • Hopefully, this development acts as a catalyst for further development/redevelopment in this portion of the city. City of Richfield Page 2 January 15, 2010 The proposed project works today because the current costs of construction are attractive and interest rates are low. We believe that failure to act will see a continuing decline in the neighborhood and this property. The City of Richfield has an overabundance of this type of retail development and as we all compete for tenants, we end up attracting or acquiring the type of tenants that neither we, nor the City, would like to see just for economic survival. We hope that you will look favorably upon this request; we see it as an opportunity to inject some new life into an area of the City that needs it and to bring some much needed employment to the area as well. We look forward to meeting with you on January 26. If you have any question in the meantime, please do not hesitate to contact me at 612-991-9062. Sincerely, =~~~~-i Terry c elks TM:pk Enclosure: Lyndale Commons Proposed Sources & Uses McNellis.WoodlakeRedevelopment Proposal.doc January 15, 2010 Proposed Redevelopment/Housing Project Woodlake Plaza Shopping Center 64th and Lyndale Avenue South Background Mary and Terry McNellis and Mike Swenson (the "Owners") of Woodlake Plaza are proposing an alternative use for the property known as the Woodlake Plaza shopping center at the intersection of 64th and Lyndale Avenue South in Richfield. The property is economically obsolete as a retail building and the surrounding neighborhood is in the early stages of visible decline and deterioration. Despite extensive efforts, the Owners of the building have been unable to lease the center to viable commercial tenants for a number of years, and after extensive examination of alternatives are proposing a change in use to multifamily housing. The feasibility of the housing development is dependent on the use of Tax Increment Financing within a Housing District and the acquisition of a small residential lot owned by the Richfield Housing and Redevelopment Authority (HRA). The Owners have owned this property for over seventeen (17) years and would be the owners of the proposed housing project. Histor The Woodlake Plaza shopping center was constructed in 1960, was remodeled and expanded in 1985; and again, most recently in 2003 when a new facade and sign band were installed. The center is well maintained and is comprised of approximately 24,000 square feet with the majority of its parking in the rear of the building. The building fa.~ade is constructed at the sidewalk edge with no on-street parking available on Lyndale Avenue, its primary commercial frontage. Over most of the building's history, it has provided rental space for small businesses serving primarily the immediate neighborhood. It has provided a good start for new businesses and for several national tenants such as Weight Watchers, H & R Block and Pizza Hut. However, the commercial .real estate market, especially for retail tenants, is an ever changing environment based on the changing tastes and shopping patterns of the American consumer. The Woodlake Plaza shopping center, as well as many the neighboring properties, has become physically obsolete and an unattractive choice for the new age of retail and service businesses. These market trends have hit Woodlake Plaza especially hard over the past five years. The property has lost almost all of its viable tenants as many of its long time local businesses either went out of business or relocated to presumably superior locations within Richfield or in other more suburban locations. Currently, the property is 49 percent vacant. Several of the new tenants leasing space in the past five years have already gone out of business or have moved on. There are a number of reasons for the lack of business and .leasing activity at Woodlake Plaza and the other commercial properties in the neighborhood. They include, among others: 1. Chan~ine neighborhood economics: There has been a concerted effort by the City of Richfield to redevelop the area near 66th and Lyndale, and it appears to have been a great success; however, travel north two blocks and you will find several deteriorated buildings including the former Lyndale Garden Center, vacant Kmart, several freestanding small vacant commercial buildings and three strip centers in excess of 50 percent vacant; the closing of the Garden Center resulted in the removal of this area from the leasing market for small tenants because the Lyndale Garden Center had served as regional identification of the .location and as an "anchor" to draw traffic for decades; the City of Richfield has seen many failed attempts to redevelop the Garden Center site over the years and its current condition and the resulting lack of a large retailer has had a devastating impact on occupancy at the surrounding properties; 2. Hi~hway construction: over the past two years, the Crosstown/I 35W project has closed Lyndale completely as well as the interchange at the Crosstown; this has crippled our existing tenants and the ability to draw any new tenants to this location; intermittent closures and congestion on the freeway will continue for at least the next year or two; 3. Decline in small businesses; even before the credit crisis and the Great Recession hit the scene, leasing to small business was very minimal; this was caused by the "one, two punch" of the consumer movement to the "big box" discount retailers and the termination of credit to small businesses; the credit crisis has shut down the ability of small businesses to borrow money to start and/or maintain their businesses; this has resulted. in no leasing activity for this sector of the commercial market for the past three years; the only exception is side shop space next to a anchor grocery store or some other big box anchor; these factors and trends were in place well before the Great Recession; projections are that we will see a long, slow recovery period which does not improve prospects for small business leasing; 4. Over supply of Product; Richfield has an abundance of vacant retail space and, we would suggest, an over abundance of older neighborhood based strip centers. This provides tenants with many options, but results in a number of vacant, economically struggling, centers. This proposed project would help remove some of that excess space from the market and would increase the number of households in the area to assist the remaining strip center properties and businesses.. 5, Recession: the Great Recession, as it has become known, has cut off credit to businesses and the consumer, has strangled consumer spending and created record levels of unemployment creating in the "knock- out punch" for the Woodlake Plaza commercial neighborhood. Recently, Kmart announced the closing of the store just a block down the street. 6. Finally, the factor that ties all the other factors toeether for Woodlake Plaza is the physical construction of the buildings which is economically obsolete; the buildings do not have a major anchor, the suites are small in size designed for small businesses for which there is no market, the buildings are constructed with the front door at the street and the parking behind the building, which was desirable in the 1950's, but does not serve the modern shopper consisting of busy families with a desire to park at the front door, run in and move on; in fact, if you examine the location of the few tenants we have left in this center, you will find that they are located on the ends of the center, where the parking is closer to the front doors of the individual suites; in addition, several of the separating or demising walls in the shopping center are constructed of concrete block which does not allow flexibility in accommodating newer or larger tenant specifications. Alternative Uses For the past three years, the Owners have hired Welsh Companies, one of the major commercial real estate brokers in the Twin Cities area, to market this center to new tenants; in all that time, they have produced one, 500 square foot tenant; they report to us that since the recession has hit, there is major discounting of rents in the Class A retail locations, therefore, what few prospects there are for smaller suites have gravitated to the Class A properties, resulting in no prospect traffic at all at the Class B or Class C properties. Based on the bleak prospects for leasing Woodlake Plaza to viable, neighborhood based tenants; the Owners have spent the past two years exploring alternative uses for the property. Two years ago, there was good activity for freestanding drug store development (Walgreen's and CVSj, freestanding bank facility development and specialty grocery store and hardware store development. The owners have explored all of these alternative users for a redevelopment within the property's existing commercial zoning classification. Prospective tenants and users have indicated they were not interested in a new building at 64th and Lyndale because it is not located on a "hard corner", which is a retail term for property located on the intersection of two major thoroughfares with high levels of traffic. Lyndale Avenue certainly meets the requirement of a major thoroughfare, but 64th most definitively does not because it simply provides access to a small residential area. The intersections of 66th and Lyndale and 65th and Lyndale meet the requirements of being a "hard corner". The banking facility development market has come to a standstill in light of the broader.credit/banking crisis. Many of the smaller specialty grocery stores find the site too small for their buildings and parking requirements or they also require a "hard corner" for their location. Other users we have pursued for the center include Ace Hardware, a medical clinic and several fitness facilities. Ace Hardware rejected the location for lack of the "hard corner' and the inflexibility of the building construction to accommodate a larger user; the medical clinic was unable to sell its existing building within the current market conditions and the fitness centers could not be accommodated due to the inflexible lay out of the building. The research into alternative uses eventually brought the owners to.the concept of multifamily housing. Two of the partners in the ownership structure of Woodlake Plaza are area experts in the construction, management and financing of multifamily rental housing with decades of experience. After preliminary discussions with the Richfield development staff, and the City's legal and financial consultants, the Owners prepared architectural plans and studies and professional market studies to determine the type, amount and style of multifamily housing which might be successful at this location. The Owners also explored several avenues for financing a project given the limited sources available in today's capital/financing environment. The Owners believe they have arrived at an attractive, market rate housing development of 90 units which would be an appropriate re-use of the property, a positive contribution to Richfield's housing stock and, hopefully, a jump start (or stimulus) to the revitalization of the section of Lyndale Avenue from 65th Street north to the Crosstown Highway. Proposed Multifamily Housine The Owners have spent much of the past year working with architects, market researchers, contractors and finance professionals to design the proposed housing development. The project consists of 90 units of rental housing currently planned to consist of nine studios, forty-two one bedroom, thirty-five two bedroom and four three bedroom units. The building is three and four stories high and creates an attractive urban edge to the Lyndale Avenue corridor. The current design provides two three-story elements defining the edge of Lyndale Avenue. Between these two elements, there is a landscaped courtyard that will provide a very "livable" amenity for the resident, and will provide green space along Lyndale Avenue. The shape of the building also provides a high level of articulation to add interest as well as defining this urban courtyard area. The "step back" from the street also provides attractive green space between the development and it s neighbors. A front entry to the building, along with individual unit access is provided from the courtyard, and Lyndale Avenue to help activate the street. The exterior is a combination of brick, rock face block and siding providing additional interest. The design provides good articulation in both the "stepped back" smaller fourth story and with the balconies and material selections. Parking is available with sixty-nine below grade and sixty-five above grade stalls, consistent with the City's. building and zoning code. The units have individual controls for heating and air conditioning, as well as individual washers and dryers, high quality interior finishes for the kitchens, bathrooms and bedrooms and many energy efficient features. Residents will have access to common areas within the building including a fitness room and community room. There is a leasing office with direct access to the entry which will be staffed seven days a week. The architectural drawings are attached to this report and electronic versions can be made available for public meetings and discussions. The market studies show a demand for market rents that would serve "workforce" households which is consistent with the Tax Increment Financing requirements the either 20 percent of the units be available at 50 percent of area median income or that 40 percent of the units be available for households making 60 percent of area median income. This is rental housing for working families and households at income levels serving the existing population of the City of Richfield. This site is on a transportation corridor which the Owners believe would be attractive to young professional and service workers in downtown Minneapolis. The proposed development is consistent with the City's Comprehensive Plan, and the Owners would hope to work with the City on "streetscape" improvements that would eventually extend south to 66th street for future connections in the neighborhood. Financins Methods The Owners have worked diligently with local finance professionals and the City's financial and legal consultants to determine the most feasible methods of financing the proposed development. The current financing environment is incredibly challenging; FNMA, Freddie Mac and commercial banks are virtually out of the market. The only source available to the developers is a HUD insured mortgage. The sources of funds for the proposed project consist of a HUD insured first mortgage, developer equity, tax increment financing and sale of a small HRA owned lot to complete the site. This is a not a "luxury" housing project and consequently the proposed rents, while affordable, also limit the total project revenue which presents a financing challenge. The Owners have struggled with the amount of cash that they will need to contribute-over $800,000 to date-to this project and even this amount is only achievable because of current "depressed "construction activity. If the City will approves our Tax Increment request we will commit to bring our resources to the table if we can move quickly enough to take advantage of the current construction environment. The Owners are requesting assistance from the City of Richfield in the form of Tax Increment Financing for the portion of the taxes generated by the increased tax value created by the project. The existing level of taxation would remain available to the City and other taxing jurisdictions. The Tax Increment assistance would be provided within a Housing District, and the legal and financial assumptions assumed. in this proposal have been reviewed and approved by the City's consultants. The other source of public assistance is the sale of one residential HRA owned lot adjacent to the shopping center site to provide additional surface parking and green space for the number of proposed units. The payment will be deferred and paid through excess TIF proceeds. Attached to this report is a summary of the proposed sources and uses of funds and a Tax Increment Financing cash flow statement and other relevant documents. Summary The Owners of Woodlake'Plaza have owned and operated this property for approximately seventeen years, and after extensive efforts to try to make it a success as a retail/service building, have determined that it is best to find another use for this property. The construction of the existing building, designed for small businesses, with no convenient parking at the front doors of the suites in an area devastated by the loss of its "anchor business", the Lyndale Garden Center, does not support economically feasible commercial investment, and this trend is expected to continue for the foreseeable future. The Owners believe, and the market study supports, a need in Richfield for new, affordable, non-elderly housing at this location and this development would be a good complement to what the City has accomplished at 66th and Lyndale. We believe that the redevelopment of this site will; remove an economically obsolete building, help adjacent properties both with the new project itself and by providing new potential tenants as our existing ones need to relocate, and, hopefully, the development of ninety housing units could help stimulate the return of viable neighborhood commercial development and preserve and grow the overall tax base of the City of Richfield. Lastly, this project will provide much needed employment in our local economy. Failure to act will likely result in the continued decline of this property and of this portion of Lyndale Avenue and, ultimately, the surrounding neighborhood as well. Attachments: Site map Site zoning map Architectural drawings of the proposed project Market study/Supplemental market study Sources and Uses of Funds Mr. Michael Swenson June 4, 2008 Michael Development Page 2 Market Area Definition Maxfield Research Inc. determined the draw area for housing in Richfield based on geographic and man-made boundaries, commuting patterns, and our knowledge of Richfield and the south Metro Area. The draw area, or Market Area, includes the Cities of Richfield, Bloomington, and portions of South Minneapolis. We also estimate a portion of housing demand will come from outside the Market Area. A map of the Market Area is shown below. RICHFIELD A%I_ARI~ET ARE~i NI~.~'ield Reseucli, Inc. MAXFIELD RESEARCH INC. Mr. Michael Swenson June 4, 2008 Michael Development Page 3 Population, Household and Employment growth Trends Table 1 presents population, household, and employment growth trends and projections for the Market Area from 2000 to 2020. The data for 2000 is from the Census Bureau. The 2008 to 2020 estimates for population, households, and employment were determined by Maxfield Research, based on data from the Census Bureau and the Metropolitan Council. • The Richfield Market Area is proj ected to experience modest growth through the remainder of this decade and next decade as in-fill and redevelopment occurs. The communities in the Mazket Area remain popular residential locations and households preferring to live closer in to the urban area continue to consider new properties located on attractive sites. The table reveals that Richfield is projected to add 3,990 people during the ZOOOs, about 40% of the Market Area's growth. South Minneapolis is projected to add the next highest number of people at 3,868 for the decade. There is virtually no land available for new development and nearly all new housing constructed has been through redevelopment. Because of the ongoing popularity of the Mazket Area communities, new developments have continued to be successful. • Since households represent occupied housing units, household growth trends are a much better indicator of housing demand than population growth trends. Between 2008 and 2020, the Market Area is forecast to add 3',215 households, a growth rate of 4.5%. This rate of growth compares to nearly 37.0% for the Twin Cities Metro Area as a whole. • Richfield is 1,627 households (10.8%) from 2000 to 2010 and another 1,900 households from 2010 to 2020, a growth rate of 11.4%. Employment growth is projected for the 2010s, but has been lackluster the latter half of the 2000s. As shown on the table, Market Area communities aze projected to experience growth of between 18,600 new jobs from 2000 to 2010, but only 6,840 new jobs from 2010 to 2020. Because of the slowdown in job growth during the latter half of the 2000s, some of the projected job growth for the 2010s may spill over into the next decade, increasing job growth there and reducing overall job growth in this decade. Employment increases however, will fuel demand for housing long-term as new employees move to live near their jobs. Typically, households prefer to live near work for convenience. This is particularly true for renters. Young adults entering the work force, a primary tazget market for rental housing, often place great value on living near employment, shopping, and entertainment. In addition, because young adults usually have more moderate incomes, transportation costs often account for a greater percentage of their budgets. Thus, the projected employment growth in the. Market Area is proj ected to translate into demand for new rental housing. • The current lack of new rental product in Richfield has caused some renters to look elsewhere for new housing. New construction with market rate rent levels has performed MAXFIELD RESEARCH INC. Mr. Michael Swenson June 4, 2008 Michael Development Page 4 well in the area, although the lack of new rental construction may initially constrain rent levels to some degree. The existence of limited competition and generally low vacancy rates throughout the area, indicate that new construction would bewell-received by the market. TABLE 1 POPULATION, HOUSEHOLD AND EMPLOYMENT GROWTH TRENDS AND PROJECTIONS RICHFIELD MARI~T AREA 1990 to 2020 Census 2000 Estimate 2008 ~ Projection 2010 2020 2000 to 2010 No. Pct. 2010 to 2020 No. Pct. Po ulation ... ... . ,..:. ,,: , ; ... ,.: . . _. ~::: ~. , Richfield Bloomington South Minnea olis t. 34,310 85,172 36 783 37,500 87,035 39x880 38,300 87,500 40 651 42,700 90,500 42,414 3,990 2,328 3 868 11.6 2.7 10.5 4,400 3,000 1763 11.5 3.4 4.3 Total 156,265 164,415 166,451 175,614 10186 6.5 9163 5.5 Twin Cities Metro Area 2,288,729 2,861,750 3,005,000 3,334,000 716 271 31.3 329,000 10.9 .. . ...::,:: Househol s:..::_;•,,..,.•.~•;........:°,..:•.,;`::;• ;i`; - ;,.; .are,;<.;, :,,~:~ Richfield Bloomington SouthMinnea olis t. 15,073 36,400 15,868 16,375 37,440 16,100 16,700 37,700 16,156 18,600 39,200 16,816 1,627 1,300 288 10.8 3.6 1.8 1,900 1,500 660 11.4 4.0 4.1 Total 67,341 69,915 70,556 74;616 3,215 4.8 4,060 5.8 Twin Cities Metro Area 875,504 1,133,500 1,198,000 1,362,000 322,496 36.8 164,000 13.7 Em to ' ~ "' Richfield Bloomington South Minnea olis t. 11,762 104,548 7,080 16,030 115,790 6,455 17,100 118,600 6,301 17,600 126,200 5,044 5,338 14,052 -779 45.4 13.4 -11.0 500 ?,600 -1,257 2.9 6.4 -19.9 Total 123,390 138,275 142,001 148,844 18,611 15.1 b,843 4.8 Twin Cities Metro Area 1,272,773 1707 355 1,816,000 1,990 000 543,227 42.7 174,000 9.6 Sources: Bureau of the Census: Census of Population and Housing; Metro olitan Council; Maxfield Research Inc. Overall Rental Market Trends Table 2 shows average rents and vacancy rates for Richfield, Bloomington-and South Minneapolis submarkets. According to the Metro Trends Report First Quarter 2008, published by GVA Marquette Advisors, the City of Richfield had a 2.9% vacancy rate, Bloomington. a 3.7% vacancy xate and South Minneapolis, a 3.1% vacancy rate. The vacancy rates are lower than the overall rate for the Twin Cities Metropolitan area vacancy rate of 3.9%. The overall rental market in the Twin Cities Area has strengthened over the past 12 months between March 2007 and March 2008, with the overall Twin Cities vacancy rate dropping from 4.4% to 3.9%. MAXF'IELD RESEARCH INC. Mr. Michael Swenson June 4, 2008 Michael Development Page 5 From March 2007 to March 2008, Metro Trends Report shows that average rents increased in all of the submarkets shown on the table, frorrl a low of 2.7% to a high of 9.1 % over a 12-month period. On average, rents have increased on an average annual basis by about 4.0% to 5.0%. TABLE 2 AVERAGE RENTS/VACANCIESRMONG MARI~T AREA SUBMARKETS 4TH Quarter 2007 and 1st Quarter 2008 •~Overall:::vg; Rent Inc. ~ Communi ~ .:Studio ~: `1BR , 1BR/D r •::2BR ::':. • 2BR/D : :. 3BR •:: .Avers` e~ ~ ~12~mo§: •~ .` Rlchfteld 4th Quarter 07 Rent $593 $658 $1,295 $862 $1,420 $1,197 $749 4.6% Vacancy Rate 0.0% 3.9% 0.0% 1.7% 0.0% 2.3% 3.0% Tst Quarter 08 Rent $593 $676 n/a $889 n/a $1,237 $765 9.1% Vacanc Rate 6.7% 2.7% 4.3% 3.2% 10.9% 2.8% 2.9% Bloomington 4th Quarter 07 Rent $653 $787 $956 $977 $1,001 $1,157 $889 2.9% Vacancy Rate, 0.5% 3.3% 3.8% 5.1% 1.8% 9.0% 4.3% Ist Quarter 08 Rent $661 $794 $959 $974 $1,008 $1,137 $893 3.6% Vacanc Rate 2.0% 2.8% 5.0% 4.3% 1.8% 6.8% 3.7% South ~nneapolis 4th Quarter 07 Rent $590 $715 $818 $970 $1,450 $5,120 $750 2.7% Vacancy Rate 2.6% 3.5% 0.0% 3.5% 33.3% 4.5% 3.4% Ist Quarter 08 Rent $618 $720 n/a $983 n/a $1,583 $769 5.0% Vacan Rate 3.4% 2.3% n/a 4.4% n/a 1.5% 3.1% Notes:lst QuarterZ008 South Central Suburban =Average Rent: $907 per month; Average Vacancy: 3.9°/a Larger Developments (Over 200 units) = Average Market Rent = $998; Average Vacancy Rate 3.4% (Metro-wide) Sources: GVA Mazquette Advisors Inc.; Maxfield Research Inc. Average vacancies declined, from 3.0% to 2.9% in Richfield, from 4.3% to 3.7% in Bloomington and from 3.4% to 3.1 % in South Minneapolis. We note that average rents as shown on the table are much lower than would be rents for new construction. The substantial amount of older rental product in these submarkets accounts for the lower average rent profile. However, newer rental developments across the Twin Cities are also reporting reasonable vacancy levels. According to the Metro Trends Report, the average vacancy rate for new construction is 5.8%, essentially at market equilibrium with an average rent of $1,257 per month. MAXFIELD RESEARCH INC. Mr. Michael Swenson June 4, 2008 Michael Development Page 6 Comparable Rental Projects Maxfield Research identified-four selected newer (1990+) xental properties in the area that provide examples of features, amenities and market positioning similar to new product that would be developed on the subject site. These properties span a wide range in product offerings; from modestly appointed to fully-appointed. The properties are shown here to provide an example of the diversity in rental rates and features among newer products, those built only just recently and those that are newer in the marketplace, but built in the 1990s. These properties are listed in Table 3, along with their number of units, a rent range and average rent, asquare-foot range and average square feet, vacancies and an average rent per square foot. This information provides examples of the ability of these properties to successfully capture a portion of the market, rent levels currently charged and overall vacancies. The following are key points from our survey of existing competitive developments. • The four developments shown on the table have a total of 2,428 units. Overall mix among the properties is less than one percent studio units, 34% one-bedrooms units, 48% one- bedroomplus den and two-bedroom units, and 18%two-bedroom plus den and three- bedroom units. These competitive properties generally have fewer studio units, more one- bedroomplus den units than the Twin Cities market as a whole. • .The overall average vacancy rate for the identified competitive projects is 4.2%, slightly higher than the Metro Area's vacancy rate of 4.7%. We note that vacancies may be somewhat higher at this time due to higher rates of turnover during-the peak leasing and moving months from June through September. • The newest property is Cornelia Place apartments in Edina. This property serves an affluent renter segment and offers distinctive features such as granite counters, built-ins, hardwood floors and stainless appliances. We do not expect that the level of finishing for a new property would equal that of Cornelia Place. • Oaks on Pleasant is a newer rental property in Richfield that has continued to increase rents and maintain low vacancy rates. Oaks offers newer contemporary features and amenities, but below the level currently offered by Cornelia Place. We envision that new rental product would be similar in quality and character to The Oaks on Pleasant. Currently, the Oaks is fully-occupied. The renter profile is a mix, but is predominantly older adults and seniors. • The average rent per square foot at the projects surveyed was $1.02 per square foot. MAXFIELD RESEARCH INC. o ~ o N ~ ~a ti 0 ~ N ~A ~ c u .:.:, Y . ~ . w ... 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T'rti::., C. :.'d' O ~O oe rn O. N d' M ~p .~i O~ N ..! N.: ~' !"!:~~;: oo d~ O d' N M • ~'~:~ :'i't N b r"y p ~ i C ~ r~ N O O N ~•.,r ,"r.+_ '.. ~ ?ri O~ O~ e? O• oG ~O O O O g ` : ' ' ' i :` ~ ' -• ~ . t; : o gip ::; : ..°, n O , .:r :', ~~ m .; ~ O sir.' p ~ a w Q :r,. ,;_.~:: ~ ~ r~ .~ f Mr. Michael Swenson June 4, 2008 Michael Development Page 8 Typical in-unit amenities are central air, modern kitchen amenities such as a built-in microwave and dishwasher and walk-in closets. Features such as balconieslpatios and underground parking are found inmost newer properties. Common area and recreational amenities found among the comparable properties include outdoor pools, party rooms, picnic areas, fitness centers and business~centers. In-unit features and amenities vary but typically include open floor plan designs, center kitchen islands or open galley kitchens, stainless appliances, and high ceilings. Rental Unit Demand Analysis Table 4 shows our preliminary demand calculations for general occupancy rental housing for a project in Richfield between 2008 and 2015. The table presents demand for market rate and low- and moderate income housing. Below is a discussion of our calculations. • The Market Area is expected to add 2,674 households between 2008 and 2015. Of this projected growth in households, we estimate the general occupancy rental market to capture about 30% of this growth. The potential demand for rental housing from new household growth is 802 units over the next eight years. • We expect that 30% of the total demand for rental units in the Market Area will come from projected growth outside the Richfield Market Area. This demand can be from individuals who would move into the Market Area for a specific product, or because of a lack of available product just outside the Market Area, or for other reasons. Adding the additional 3U% results in a total estimated demand for 1,146 rental units from 2008 to 2015. • We estimate that of the demand for 1,146 rental units, 50% of that demand will be for market rate units. The remainder of demand will be from lower-and moderate-income households seeking subsidized and affordable units. This equates to demand for 573 market rate and 573 affordable (moderate and low-income) units. • From the total demand for rental units in Market Area, we subtract the planned and pending rental units, of which there are currently none. • No one project or location can capture all of the rental demand. We estimate that your property in Richfield could capture approximately 20% to 25% of the demand in the Market Area for market rate rental housing, This results in demand for about 115 to 143 rental units on a subject Site between 2008 and 2015. • In addition, we estimate that your Richfield property could capture approximately 25% to 30% of the demand for low- and moderate-income rental housing. This results in demand for about 143 to 172 rental units on the subject Site between 2008 and 2015. MAXFIELD RESEARCH INC. Mr. Michael Swenson June 4, 2008 Michael Development Page 9 TABLE 4 PROJECTED DEMAND FOR RENTAL HOUSING RICHFIELD MARKET AREA. 2008 to 2015 Housing :: ~;, . ~~ Units ° `-. Projected new housing unit demand from household growth, 2008 to 2015 2,674 (times) Estimated percent of demand for general occupancy rental housing x 30.0% (equals) Estimated G-O rental demand in the Market Area, 2008 to 2015 = 802 (plus) Demand from outside the Market Area (30%) + 201 (equals) Demand for rental housing in Market Area = 1,146 (times) Percent of rental demand for market rate units x 50.0% (equals) Demand for market rate rental units = 573 (less) Competitive units pending in the MarketArea - 0 (equals) Total demand for market rate rental housing in MarketArea = S73 times Estimated ercent of demand ca tunable on the Site in Richfield x 20% - 25% 43- e' uals Market Itafe:~uni~s'su " ~ ortalile `on ~tlie Site yin ~Richfielci ~ `~~.':`= •'~ ~:~ : ~ ~: ~ ~ ~ ITS,:': -:.:'1 (times) Percent of rental demand for moderate rent units x 50.0% (equals) Demand for moderate rent units = 573 (less) Competitive units pending in the MarketArea - 0 (equals) Total demand for moderate rent rental housing in MarketArea = 573 times Estimated ercent of moderate rent demand ca tunable on the Site in Richfiel x 25% - 30% ::,;... .. •.~..~ :~r e~~iials ModerateYtentunits'sn `"~ortableontheSitein~Richfield:~~=` ~°:`:~~:~. ~:=.~.~:~ ::'•143:.=:~~:172: Source: Maxfield Research Inc. In addition to the demand identified here, we also note there is pent-up demand for units in the Market Area. Based on current vacancy rates, pent-up demand in the Market Area totals another 240 units. Approximately 30% of these units would be for market rate housing (72 units) and the remainder (168 units} would be for moderate income rental housing. Preliminary Conclusions and Recommendations The rental market has improved considerably from two years ago; rents have increased between 3% and 5% and vacancies aze below market equilibrium, in the 3.0% to 4.5% range. Based on the calculated level of demand for rental housing in the Richfield Market Area, we believe there is sufficient demand to support between 120 and 150 units on the property that would have a mix MAXFIELD RESEARCH INC. Mr. Michael Swenson June 4, 2008 Michael Development Page 10 of market rate and moderate-income units. We recommend that the moderate-income units account for no more than 30% of the units in the building and preferably no more than 20%. Suggested Rent Levels, Unit Mix and Unit Sizes Table 5 shows our suggested unit mix, sizes, and rents for the proposed development. We recommend market rate rents of $825 to $875 for studio units, $925 to $950 for one-bedroom rents, $1,350 to $1,400 for two-bedroom rents and $1,500 to $1,600 for three-bedroom units. Moderate rent units would range in price from $700 per month for a studio unit to $1,100 per month for atwo-bedroom unit. Table 5 shows average base rents for market rate units to be $1.31 per square foot. Total average per square foot rent for market rate and affordable would be $1.27 per square foot. TABLE 5 PRELIMINARY SUGGESTED UNIT MIX AND RENTS RICHFIELD PROPERTY June 2008 of Suggested Rent / Unit Type Rent Basis Units Square Feet Rent Sq. Ft. Studio ~ Market 5% - 5% 600 - 625 $825 - $875 $1.38 -$1.40 Studio Affordable 2% - 2% 500 - 535 $700 - $725 $1.40 - $1.36 1BR/1BA Market 35% - 35% 700 - 725 $925 - $950 $1.32 -$1.31 1BR/1BA Affordable 10% - 10% 650 - 700 $800 - $850 $1.23 -$1.21 2BR/2BA Market 30% - 30% 1,000 -1,100 $1,350 - $1,450 $1.35 -$1.32 2BR/2BA Affordable 8% - 8% 950 - 1,050 $1,000 - $1,100 $1.05 -$1.05 3BR/2BA Market 10% - 10% 1,250 - 1,300 $1,500 - $1,600 $1.20 -$1.23 TOTAL:.t:~:;.:::. •,,.:, ::; :: t:.:~.~~'•'.::'~'::. •:,.;: ' .~. 0%`~=.:100% ; -~:;AVG'~:i~~~'~:~,~'8 =10 35 _ x$1;046 ~~r~~$1.2T.::::;`~'` er a Onl Market Av a .: - - "~ ~ $1.31 ' *Rents include water, sewer, trash, and one under and stall. Source: Maxfield Research Inc. Residents of the proposed project should pay for gas heat and electricity. The newest rental properties in the marketplace require their tenants to pay fox heat as well. Water, sewer and trash charges are typically incorporated into the monthly rent as is the monthly charge for one covered parking stall. We recommend floor designs that maximize flexibility and use open spaces that flow into one another. We also recommend the following in-unit amenities. • High-speed Internet access; • Digital cable/satellite TV access; • .Full kitchen appliance package including microwave oven; • One bath in one-bedroom /plus den and two baths in larger units; • Walk-in closet in master bedroom; MAXFIELD RESEARCH INC. Mr. Michael Swenson June 4, 2008 iylichael Development Page 11 ~; • Mini/vertical blinds; • Private balconies or patios; • In-unit washer/dryer. We also recommend the following recreation /common area amenities: • Outdoor gas grills and a picnic area; • Rooftop terrace with outdoor sundeck; • Community room with serving kitchen and big screen TV; • Business center; • Exercise room; • Bike room; • Storage lockers. These common area features will also attract residents to the property and will offer an additional value to the apartment community. We recommend 1.0 stall of underground parking per unit with the option for tenants to pay an additional $50 /month for extra stalls. Projected Absorption If a property is developed with.approximately 150 units, we estimate that 20% of the units could be preleased with the remaining units leasing at a rate of 12 units per month. At this rate, the project would reach stabilized occupancy (95%) in 9 to 10 months of opening. This absorption rate assumes that the project would open during the peak leasing season. If the property opens in the Late fall or winter months, the absorption period would be extended by between 3 to 4 months. MAXFIELD RESEARCH INC. --- -., axfieId --,. ~ Hrsrarch Inr. July 31, 2009 Mr. Michael Swenson Michael Development 2177 Youngman Ave. #180 St. Paul, MN 55116 RE: Preliminary Unit Mix, Sizes and Rents for Proposed Workforce Housing in Richfield, Minnesota Maxfield Research Inc. has compiled a preliminary unit mix, unit sizes and rents for a proposed workforce housing development that would be located on South Lyndale Avenue and roughly 64~' Street in Richfield, Minnesota. The project would be comprised of a mix of retail and residential uses and would replace neighborhood strip center development. Table 1 presents a suggested development concept for the residential component of the property. Rents include heat, water, sewer and trash removal and one enclosed parking stall. Electricity and telephone would be paid for by the resident. TABLET PRII.IIVIINARYUNIT NIIX/SIZZ>iS/RIIVTS RICFIFIII,D RENTAL July 2009 of Average Unft Type Total Sq~Ft. Rent Range Rent/S~c . Ft, Rental Building Studio 5.0 550 1BR/113A 50.0 .750 2BR/1,75BA 35.0 1,050 3BR/2.SBA 10.0 1,300 Total 100.0 $860 - $885 $1.56 - $1.61 $985 - $1,085 $1.31.- $1.45 $1,335 - $1,430 $1,27 - $1.36 $1,545 - $1,595 $1.19 - $1.23 Median = $1.34 Note: Rents include heat, water, sewer and trash removal; Rents include wall-unit air conditioning one parIring stall inckuded; additional parking stalls, $75.00 per month. Rents are in 2009 dollars with an annual trend factor of2.5% to occupancy. Source; Maxfield Research Inc. 615 In Avenue NE, #500, Minneapolis, MN 55413 (612) 338-0012 (612) 904-7979 fax www.maxfieldi~esearch.com Mr. Michael Swenson July 31, 2009 Michael Development Page 2 In marketing of mid-price properties, we find that the target markets respond very well to properties that include the heat in the rent rather than provide separately metered heating and cooling units. Although some case is attempted to be made that the resident has more control over utility costs by managing their own heating and cooling, there is almost always a trade off in that the rents for new product do not appear to be less to accommodate this feature. Inmost instances, rent levels are higher because of the additional cost to add separate the separate utility units uxespective of what is paid by the tenant inutility costs later on. As such, prospects tend to prefer having their heat included in the rent. If you have questions or need additional information, please contact me at (612) 904-7977. Sincerely, MAX]~TELD RESEARCH INC. ~~ ~~ Mary C. Bujold President 6151" Avenue NE, #500, Minneapolis, MN 55413 (612) 338-0012 (612) 904-7979 fax w~vw.maxfieldresearch:com SITE MAP 64th and Lyndale Site Plan SITE ZONING MAP Comprehensive Plan Map - Woodlake Plaza and HRA Property 1 i i~ _~~ ._ 64th Street Legend Proposed Development sit Regional Commercial Regional Commercial/Offic Comm Commercial ~, Comm Commercial/Office I Neighborhood Commercia office High Density Res ~j1, High Density Res/Office Medium-High Density Res Medium Density Res Low Density Res Mixed Use Park Public Quasi-Public School/QP Church / QP ROW a 65th Street Zoning Map - Woodlake Plaza and HRA Property 64th Street d Proposed Development C-1 C-2 I MR MR-1 MR-2 MR-3 MU-C MU-C/PAC MU-N MU-R PC-2 - PMR PMR-1 R ---- R-1 SO-1 _. ,. ~, D N \\ C~i ~ 65th Street ~ ~ ~ ~,~\ ARCHITECTURAL DRAWINGS OF THE PROPOSED PROJECT 6 4th and Ly n d a l e .Michael L1--'._I~~V~1Qj~lil~Ilt Co I I a e a r c h i t e c t s PL~BLlC RlCHT-OF-JYAY J NEST 64TH STREET /I ~\ ~~ ~~. ~~ 9~ ~~ `\~ G ~~ ~`\ ~ rn rG' yG 9a Ct'~ o~ G~ ~~ 9~ J t~ ~ oG a~ ~~I I I I L I ~ 66 STALLS 6 4 t h a n d L y n d a ~@ -SITE PLAN o~.0~.200~ ~;Mcnael ~.,~~ ~~VelQ~ment CoI Ia e __ _ a r c h i t e c t s ~ ~ DECK 1 2'-O" X 6'-O" ---- -. ^ __.... GREAT ROOK 12'-O" X 1 6'-J" I ~:, BEDROOM NOOK B'-O" X 1 O'-O" +--~. ij 11f W/D -- 64th and Lyndale o~.0~.200~ -' Init plans are ai ante ~vitf,out n STUDIO 571 SF 72 SF DECK 1 BATH O 4r pi ~~ ,... ,.: ~_ - ---- ----- ,Z~_U~~ ,.,~ -- ~_ - i i i DECK 1 2'-O" X 6'-O" ~ ~ _ i ~~ _ __ u J ', ~ ~---~ -._ ~~ BEDROOM ~l __ ,. ', ~ -- - - - _- ~_ R. , „ - I _-- GFIEAT ROOM ~~ ~ ~ ~ 1 2'-3" X 1 B'-4" ' i rv \ \ -~ / i ~!' ~.,, ~ .."_--Y- I ._ _ ~~,- W/D - KITCHEN \ ,.: / ,~ ~~. ~ ~I I ,, _- ~. ~ ~ ~ ~ _: _ ~7 64th and Lyndale 03.03.200 ONE BEDROOM 3/~ 6" _ ~ '-o" 721 SF ~2 SF DECK 1 BATH 0 ~~ 8• ~-_~ ~ ,~ i i DECK I~ i 1 2'-O" X 6'-~" I 64th and Lyndale o~.0~.200~ ONE BEDROOM BB8 SF 72 SF DECK 1 BATH ~ 4• 8• 'Unit plans are an artist re ~~ change without notice. Se_ BEDRODM 1 2'-6" X 1 1 '-~" GREAT ROOM 1 2'-6" X 1 E'-4" 4 / ;~ li ~i \ \ ~ ~ / / / 64th and Lvndale o~.0~.200~ - f-- -+---- r -> ., DECK 1 3'-O" X E'-O" it TWO BEDROOM 3~~ 6 ~ ~ J14 SF 7B SF DECK 1 BATH nit plans are en ert~st representation only and are suLrjeot to enge without notice. See your builder for crmplete information. ~ 4! 8• ~~ 2, _,,, N DECK 1 2'-O" X 6'-O" 64th and Lyndale o~.0~.200~ TWO BEDROOM ~~~ 6 ~ ~ '1022 SF 72 SF DECK 2 BATH Unit plans are an hange without noti ~ 4• 8• ~~ 11'- I" DECK .~'' ~ 'I 2'-O" X 6'-O,. ~ ~ ~ 0 ~~ `~c ~~ 64th and Lyndale 03.03.2000 TWO BEDROOM 3~~ ~ ~ ~ '1022 SF 72 SF DECK 1 BATH lnit plans are an artist representation cn!y and are subject to range without notice. Bee your builder ror complete inrormation ~ 4• 8• ®~ ~ _. DECK 1 2'-O" X B'-C ~ ~ 64th and Lyndale o~.0~.200~ TWO BEDROOM 3/1 6" _ ~ '-o" '1025 SF 72 SF DECK 2 BATH Unit plans are an artist representation only and ere suL' hange without notice. See yow, builder for complete inf ~ 4• 8• ~•®~ f i' ' ' ~` i ,, ~I ~' ~, BEDROOM ~ 1 2'-O" X 1 O'-B" .,C ~ . ___ ~, y --- - ~ ,~,' - /r _, .. ~ / ~~ ~~' __ KITCHEN \.. /. / ~~ ~ ~~ ~ ~ ~ _ i, :, ~~ __ _ ~ _._1-.. _-- h OM I ~~- ~_ X 1 1 '-6" GREAT ROOM 1 B'-2" X 1 B'-B" 12 '/ ,.~ . j ~~ ~~ ~ i ~~ ~_J . ~`\~ _~ r__ -~ r~ ~~ i ~ j ~~--- ~ ; ~ ~ I n ~ ~t ~ ~' DECK x;' ~~ 1 2'-O" X B'-O" '~ __ -- __ 64th and Lyndale o0.00.200~ THREE BEDROOM '1055 SF 72 SF DECK 2 BATH 'urnt puns are an arLisL repreSenLatiion only ano are sw~ec~ ~c change without notice. See your builder far complete informal ~ 4• 8• ~~~ ~~ ;~ i L~ i ZG -J BEDROOM 1 2'-6" X '12,_7„ ~\ - i 4__-J-' _ __ ~ - -- I I ,.---~ ~ I GREAT ROOM 1 2'-6" X 23'-O" ~--~ ,.. r~ I ,~, - _-~ BEDROOM ~~~ ! ~ '12'-2" X 13'-J" i --- -- n -~ ~~, ~ -~ ~_~ ~1 J ~~ 64th and Lyndale o3.03.200~ THREE BEDROOM 1210 SF 72 SF DECK ~ 1 BATH 'Unit plans ere en ertist representar.ion cniy ~sno Gra ~hanGe without notir_e. 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'- ~ S/<" Gt'PCat T~ 12 '~N15,~ [ ME 7AI.. °A 2Af [ CAP • ~/e' f & 6 PLt wroD (l,Y.UED k NAII.EIt) ~J nA4' )CF MFM Oft i !!nl 11 • 'ill INS:II.Af10N PR' tNi S~~t[ Vf;lAl_ - ~4' ~L0(Y2 iRIISSi:S Pi 1M1" O.C. . ~ /' aFSll f ' CHANNEL w t6" O.C. a f ""` F'rrP x ;m SG 1 ~ 7 wC( [.1AIN:' :•-L~. t Ra FIRE Rn".nc ~-c r IJI. S~CN' L52tl 'IGAL. CORRIDOR FL.^. (iR / CEILINt. - .. 3/4' CvPCRETC TOPPING ' '~~~•" i k G P;.YW000': (G_U GU r. r' I~f x cm ND n ~ O r 0_- ~ ~ ~ -t~ ~r ~'_' /, ~ ~ ~ ~ p ~ p" T IY `" _ _ 10 _ _ T.O. ROOF ,~1 5 ^ EL = 146'-1 1 /2" - --- 7 0 M _ _ -_ __ _ - - - \~~~I'I _ E ~ ROOF BEA~RING EL = 141-6 3/4"~' 5 I 4 7 FOURTH FLOOR __ _ 4 _ TOP OF SUBFLR. - ~ EL = 132'-5 5/8 I i 4 ~ I THIRD FLOOR - TOP OF SUBFLR. - - - - _ ~ ~ EL = 121'-7 3/4' 6 m dd «) i m 4 ~d SECOND FLOOR TOP OF SUBFLR. - -- _ -- ~ EL = 110'-9 7/8' -~ ____.- .__.. C N 12 O 1.~.-LJ U ~ 12 f~ 3 -= I II TOP OF PRECAST FIRST FLOOR --_ '..._ - - EL = 100'-0,+ - . - _ - _ _ I 3 i GRADE a ro C~ ~~ TOP OF SLAB _ _ GARAGE LEVEL__~~ _~, LL ~?~~_ w ,.~~ ~.,~.r : A„tom „~ ~ +tr a.;e MARKET STUDY Inc: MEMORANDUM TO: Mr. Michael Swenson Michael Development FROM: Ms. Mary C. Buj old Maxfield Research Inc. RE: Preliminary Assessment of Market Conditions for General Occupancy Rental Units in Richfield, Minnesota Introduction This memo provides a preliminary assessment of the potential demand for market rate general occupancy rental units in Richfield, Minnesota. We also comment on the demand for affordable rentals and the proportion of affordable to market rate that would appropriate for the proposed development. This assessment includes: • Identification of an appropriate Market Area for the proposed development; • An analysis of population, household and employment growth trends in the Market Area; • An overview of current rental rates and vacancy rates for apartment developments in Richfield; a review of selected newer rental properties in Richfield and adjacent surrounding communities, including the size of development, rents and estimated vacancies; • Calculation of demand for general-occupancy rental housing in the Market Area, the target market and the market share that the proposed development could capture in Richfield; • Preliminary recommendations regarding an appropriate development concept including: rental rates, unit mix, and unit sizes, and • An estimate of absorption (phone) 612.338.0012 (fax) 612.904.7979 615 first Avenue NE, Suite 400, Minneapolis, MN 55413 vnuw mavficlr•roeaarrh rnm June 4, 2008 SOURCES AND USES OF FUNDS LYNDALE COMMONS PROPOSED SOURCES AND USES SOURCES OF FUNDS Footnotes HUD First Mortgage Loan Proceeds 8,311,000.00 TIF Pay as You Go Note 832,000.00 HRA Land *** HUD Required Developer Contribution 806,245.00 * Owner Equity 795,394.00 TOTAL SOURCES OF FUNDS $10,744,639.00 USES Land 1,200,000.00 Site Work/Pre-Construction 499,608.00 Total structure, including garage 6,168,455.00 General Requirements 104,800.00 ** Builders Overhead 135,457.00 ** Total architectural 160,000.00 Engineering 13,800.00 Permits & Fees 55,373.00 SAC/WAC 164, 000.00 Third Party Reports-Phase 1 Environmental, Architectural Review, Cost Review, 32,500.00 Capitalized Interest & Taxes 348,800.00 ** FHA Application, Insurance, Inspection, Legal & Accounting 340,100.00 ** Working Capital 2% 181,000.00 ** Operating Deficit (3%) 271,500.00 ** Payment & Performance Bond 760,000.00 HRA Land *** Contingency 203,000.00 HUD Required Developer Contribution 806,245.00 * TOTAL USES OF FUNDS $10,744,639 *This is shown as both a source and a use. If the owner agrees to act as the General Contractor, and assume that additional risk, HUD treats this as additional equity for for underwriting purposes **These amounts are either estimates from the HUD Mortgage Underwriter or formula driven amounts under the FHA/HUD mortgage program. ***The purchase of the HRA Land will be paid for with excess TIF proceeds once the TIF note is retired 1/21/2010:2:05 PM McNellis:LyndaleCommons.ProposedSources. CITY OF RICHFIELD, MINNESOTA Office of City Manager January 21, 2010 l Council Memorandum No. 6 The Honorable Mayor and Members of the City Council Subject: SCADA Demonstration and Capital investments (Worksession Agenda Item No. 2 ) Council Members: At the January 26, 2010 City Council Worksession, the following two items will be presented: • City staff will demonstrate the new SCADA (Supervisory Control and Data Acquisition) system. • Staff will also be discussing some possible capital investments at the water treatment .plant. SLD:cak Email: Department Directors Assistant to the City Manager CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special City Council Meeting Closed Executive Session January 6, 2010 CALL TO ORDER The meeting was called to order by Mayor Pro Tempore Sandahl at 4:30 p.m. in the Council Chambers. ROLL CALL Members Present: Sue Sandahl, Mayor Pro Tempore; Pat Elliott; Fred Wroge; and Tom Fitzhenry. Members Absent: Debbie Goettel, Mayor. Staff Present: Steven Devich, City Manager; Mike Eastling, Public Works Director; Kristin Asher, City Planner; Corrine Heine, City Attorney; John "Mac" LeFevre, City Attorney; and Cheryl Krumholz, Recording Secretary. City Attorney Heine stated that a Closed Executive Session was requested. to discuss a possible settlement proposal and litigation risks related to the CSM Shops at Lyndale damages resulting from the Lyndale Bridge project. City Attorney Heine stated the City Council may return to open meeting following the closed session. By unanimous consent the City Council left the Council Chambers at 4:31 p.m. to conduct a Closed Executive Session in the Executive Conference Room. Item #1 SPECIAL CITY COUNCIL CLOSED EXECUTIVE SESSION IN EXECUTIVE CONFERENCE ROOM FOR DISCUSSION AND CONSIDERATION OF THE CONDEMNATION CASE AT SHOPS @ LYNDALE The Closed Executive Session was called to order by Mayor Pro Tempore Sandahl in the Executive Conference Room at 4:33 p.m. Members Present: Debbie Goettel, Mayor (via telephone conference); Sue Sandahl; Pat Elliott; Fred Wroge; and Tom Fitzhenry. Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; Kristin Asher, City Planner; Corrine Heine, City Attorney; John "Mac" LeFevre, City Attorney; and Cheryl Krumholz, Recording Secretary. Closed Executive Session Minutes -2- January 6, 2010 The Closed Executive Session was convened pursuant to M.S. 13D.05. The Closed Executive Session was adjourned by unanimous consent at 5:04 p.m. in the Executive Conference Room. Item #2 RECONVENE IN OPEN SESSION IN COUNCIL CHAMBERS FOR POSSIBLE CITY COUNCIL ACTION The open session meeting was called to order by Mayor Pro Tempore Sandahl at 5:07 p.m. in the Council Chambers. Members Present: Sue Sandahl, Mayor Pro Tempore; Pat Elliott; Fred Wroge; and Tom Fitzhenry. Members Absent: Debbie Goettel, Mayor. Staff Present: Steven Devich, City Manager; Mike Eastling, Public Works Director; Kristin Asher, City Planner; Corrine Heine, City Attorney; John "Mac" LeFevre, City Attorney; and Cheryl Krumholz, Recording Secretary. M/Fitzhenry, S/Wroge to approve the proposed settlement agreement as presented by legal counsel Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 5:09 p.m. Date Approved: Cheryl Krumholz Recording Secretary Suzanne M. Sandahl Mayor Pro Tempore Steven L. Devich City Manager J CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special City Council Meeting Advisory Board/Commission Applicant Interview January 9, 2010 CALL TO ORDER The meeting was called to order by Mayor Goettel at 9:20 a.m. ROLL CALL MEMBERS PRESENT: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; Fred Wroge; and Tom Fitzhenry. INTERVIEW OF APPLICANTS The City Council conducted interviews of the following applicants for appointment to City Advisory Boards and Commissions: Tim Carter Dennis Callmie Judy Goebel Daniel Kitzberger Michael Sharkey Matt Tietje Andrew Wittenborg Debra Caserotti Peter Dysart Tracy Hollenback Robert Hall Bob Shotwell Sarah Till Maureen Scaglia Molly Darsow Daniel Edgerton Melissa Huybrecht Gary Ness Roger Swanson Jennifer Turrentine Staff is to follow-up with Ron Wilson, Ellen Stinger, and Jeff Hovel. ADJOURNMENT The meeting was adjourned by unanimous consent at 11:45 a.m. Special Meeting Minutes -2- January 9, 2010 Date Approved: Debbie Goettel Mayor Cheryl Krumholz Recording Secretary Steven L. Devich City Manager J CITY COUNCIL MINUTES Richfield, Minnesota Special Worksession January 12, 2010 CALL TO ORDER The meeting was called to order by Mayor Goettel at 5:30 p.m. ROLL CALL Council Members Present: Debbie Goettel, Mayor; Pat Elliott; Fred Wroge; Sue Sandahl; and Tom Fitzhenry. Staff Present: Steven L. Devich, City Manager; Mike Eastling, Public Works Director; Jim Topitzhofer, Recreation Services Director; Barry Fritz, Public Safety Director; Chris Link, Street Maintenance Supervisor; and Cheryl Krumholz, Recording Secretary. Item #1 DISCUSSION REGARDING EMERALD ASH BORER PREPAREDNESS (COUNCIL MEMO NO. 1) Public Works Director Eastling and Street Maintenance Supervisor Link presented information regarding Emerald Ash Borer (EAB) preparedness. Topics discussed included: Policy Direction o Remove/replace trees o Injection of certain trees o Timeframe for removals o Use of contractors • Financiallmplications • Possible grant funding Mayor Goettel stated EAB issues were discussed at a recent regional mayor's meeting; including legislative funding. Special Worksession Minutes -2- January 12, 2010 City Manager Devich said it may be difficult to enforce inoculation of EAB trees on private property. He suggested treating public property trees so costs can be managed for removal. Council Member Wroge suggested discussion should include placement of a boulevard tree that has been removed -private property or back on boulevard. Council Member Sandahl stated that trees are part of the City's infrastructure and a community value. The City Council consensus was to monitor the EAB impact, draft an enforcement policy, and contact other cities and states regarding their preparedness and treatment approaches. Item #2 DISCUSSION WITH RICHFIELD FOURTH OF JULY COMMITTEE (COUNCIL MEMO NO. 2) Recreation Services Director Topitzhofer, Recreation Programs/Athletics Manager Frank White, Public Safety Director Fritz, Rick Jabs, Tom Rubelin, and Andrew Seifert; Fourth of July Committee members, discussed the following information: • Committee Structure • Spectator Estimates • 2009 Financial Review of the Celebration • Summary of City Resources for the Celebration • History of July 4t" Police Calls Mayor Goettel expressed concern that the carnival is not a family event and attendance is down due to personal safety concerns. Council Member Wroge stated he would find funding for the July 4 without the carnival because it is important to retain the activities. Council Member Fitzhenry stated he believed the carnival was the draw on July 4 and residents don't go there due to its volatility. Council Member Sandahl agreed that a broader range than Richfield residents attend July 4 events. She suggested the late hours of the carnival be restricted on July 4 since that is when it appears to be the problem. Mr. Rublein stated that restricting hours would have a financial impact. The City Council consensus was to continue the carnival with a 1-2 year contract, give the Public Safety Director or his designee the authority to shut down the carnival if problems occur, and modify the carnival contract to limit their hours of operation on July 4. ADJOURNMENT Special Worksession Minutes -3- January 12, 2010 The meeting was adjourned by unanimous consent at 6:57 p.m. Date Approved: Cheryl Krumholz Recording Secretary Debbie Goettel Mayor Steven L. Devich City Manager AGENDA SECTION: CONSENT AGENDA ITEM # ~ 3A REPORT # 18 STAFF REPORT CITY COUNCIL MEETING JANUARY 26,-2010 REPORT PREPARED BY: KAREN BARYON, COMMUNITY DEVELOPMENT ASSISTANT DIIZECTOR NAME, DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution approving the 2010 Social Service agency funding recommendations and authorizing the City Manager to execute agreements for service with those a encies funded b the Cit . I. RECOMMENDED ACTION: Approve the attached resolution for the 2010 Social Service agency funding recommendations and authorize the City Manager to execute aareements for service with these agencies funded by the City. II. BACKGROUND The City of Richfield allocates funds on an annual basis to social service agencies serving the Richfield community. The following priority areas for funding consideration, established by the Richfield Human Services Planning Commission, were used to evaluate the applications received: 1) services for vulnerable senior residents; 2) services for individuals, families, teens and/or children at risk; 3) housing support services for low-income persons and persons at risk. An announcement was made soliciting funding proposals.. for service in the Sun Current. Applications were also sent to prospective agencies. A total of nine applications were received from the following agencies: The Storefront Group, Modulo de Informacion, Recursos y Apolyo (MIRA), Volunteers Enlisted to Assist 01262010 SocSerFunds Recommendations People (NEAP), Senior Community Services (SCS), Bridging, Inc., Cornerstone Advocacy Service, Loaves and Fishes, Church of New Life, and Minnesota Life College. Minnesota Life College's request unfortunately did not meet the funding criteria and therefore have not been recommended for funding. -The remaining eight applications represent a wide variety of services offered to Richfield residents, as well as others outside of the city of Richfield. The total funding requested by the eight eligible agencies exceeded the City's funding by $35,000, or approximately 27%. Staff reviewed the proposals from the applicant agencies and is making the following recommendations for funding: Or anization 2010 Fundin Request 2010 Recommendation The Storefront Grou $30,000 $21,745 M I RA $15, 000 $10,950 NEAP $20,000 $14,600 Senior Community Services $12,000 ~ $8,760 Brid in ,Inc. $15,000 $10,950 Cornerstone Advocac $22,550 $16,460 Loaves and Fishes $5,000 $3,650 Church of New Life $7,390 $5,395 TOTAL $127,440 $92,510 The 2010 recommendations represent funding of approximately 73% of each agency's funding request. The following is a history of the City of Richfield Social Service grant awards over the past five years: Or anization 2005 2006 2007 2008 2009 Senior Communit Services 9,070 9,070 9,070 11,500 $11,160 Cornerstone 13,500 13,500 15,000 15,000 - $13,950 Storefront 30,000 30,000 28,000 28,000 $26,040 Famil & Children's Services 10,000 8,000 8,000 $7,440 NEAP 15,000 15,000 15,000 15,000 $15,810 Richfield READY 2,500 2,500 2,500 2,500 $2,325 MIRA ~ 10,000 9,285 $9,737 Church of New Life $2,325 Loaves & Fishes 3,000 3,000 $3,720 Bethan Covenant Church 7,285 CAPSH 5,000 Assumption Church 8,000 RCC Communit Dialo ue 500 Oak Grove Church 7,000 HRA-Kids at Home 5,000 House of Pra er 10,000 RF Schools/ Au sbur Libra 1,500 TOTAL $93,570 $93,570 $93,570 $96,570 $92,507 III. BASIS OF RECOMMENDATION A. POLICY • All recommendations meet the priorities established for funding (see attached "Guidelines and Instructions for 2010 Funding Assistance" and "2010 Application for Funding Assistance"). • Agencies recommended for funding have met review criteria in the areas of service need and program management (see attached "Guidelines and Instructions for 2010 Funding Assistance" and "2010 Application for Funding Assistance"). • Agencies recommended for funding have stated service outcomes and have established methods for evaluating service results. B. CRITICAL ISSUES • Services are to be provided in calendar year 2010. C. FINANCIAL • Recommendations are based on the unallocated portion ($92,510- . Human Services-Programs), of the 2010 Other Agencies Division Budget, 10105. A City Council/Administration 2010 allocation of $25,720 of this budget is designated for the Hennepin South Services Collaborative for research, planning and coordination functions. D. LEGAL • Agencies awarded funding will be required to sign a service agreement. E. ENVIlZONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATIONS) • Approve recommendations with revised allocations. • Do not approve recommendations. V. ATTACHMENTS • Resolution Descriptions of Proposed Services Guidelines and Instructions for 2010 Funding Assistance 2010 Application for Funding Assistance VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ~~~( RESOLUTION NO. A RESOLUTION APPROVING THE 2010 SOCIAL SERVICE AGENCY FUNDING RECOMMENDATIONS AND AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS FOR SERVICE WITH~THOSE AGENCIES FUNDED BY THE CITY WHEREAS, the City of Richfield desires to support social service agencies serving the city's residents; and WHEREAS, the City of Richfield has allocated funding for this purpose; and WHEREAS., the City of Richfield solicited applications for said funding and has reviewed the applications against criteria established for the award of this funding. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Richfield that the funds are allocated as follows: Organization Recommendation The Storefront Group $21,745 MIRA $10,950 VEAP $14,600 Senior Community Services $8,760 Bridging, Inc. $10,950 Cornerstone Advocacy $16,460 Loaves and Fishes $3,650 Church of New Life $5,395 TOTAL $92, 510 BE IT FURTHER RESOLVED that the City Manager be authorized to execute contractual agreements with the above-named agencies summarizing services to be provided to Richfield residents. Passed by the City Council of the City of Richfield, Minnesota this 26th day of January, 2010. Debbie Goettel, Mayor Nancy Gibbs, City Clerk ~ A- ~.. J W V LL O V W V Z Q H N N Q Z 0 z LL W V W N J V Z N V Z W NQ I.f. W F O N z O D Z W O V w 0 0 N J V Z O V Z Z Z J a W V 4f. W N Z 2 ~_ Z V J W V _ O C = r d N O v °o ~ ~ ° O ~ Ef} °o Cfl r Ef? c°o N 69 ° O ~ b9 ~ ~ ~- (~? ~ Cfl EA rn M Efl Ln G7 b9 N -p V N ~ _ C _ tq fB ...: ~' ~_ ~ 0 uS - U N O •O ~ .., ~ ~ N ~ ~ ( 6 ~ ` ~ O c ~ ~~ ~ V O O O ~ O ~- O ~ cn ~ • ' N N L L .r.. ~' L L ~ rt ~+ U C ~ ~ ~ LL ~ ~ ~ fn ~ ~: L ~ •~ N ~ O ~ T ~ ~ 0 ~ p ~ ~ ~ '*" ~ ~ ~ ~ ~ (6 N 0 ~- ~ ~ O ~ N 7 ~ ~ ca ~ ~ ~ " ~ c •C .~ ~ ~ ~ is ~ ~ ~ ~ "_ .~ N ~ o O~ ~O N O fn U -a c O C o O Q ~ L~ a N N N '~ N O N tQ ~ X 3 N ~H U O O~ ~ U • O ~ ~ ~ Q~ ~~ ~ O '"' U O p N ~~ ~ O c N c O LT N O -O ~=C 0 L N ~~~ fA y~-+ c N (B (B -a ~ ~ O~ C C p Q c >, O L ~ O C .~-. N N N ~'~ ~ U .0 ~ ~: ~ ~ .N ~ ~ O ~ O Q ~ U 'o "= N ~ ~ ~ 0 A fB N ~ ~ ~ U ~ N ~ O Q ~ ~ N (L O ~ ~ C O . ~ I- ~ X . Q' ~ fA • ~ fn ~ d O O ~ O ~ L (B'~- > ~' N +-' ~ ~ f- In _ .O ~ N ++ ~ L ~- C ~ ~ L LL.. O ~ O ~' ~ N ~ ~ L. O Q ~ C O ~ ~ O ~ ~ p N L >' N N ~ L Y N ~ ~ '~ N ~ ~ ~ ~ - O U1 N O O "~ C O (0 L O ~ ~ c >, (a O U . U ~ "~ `+- (B ~ c `~ N a~ ~ L ~ Q. ~ 3 ~ m ~' ~ vii E c a~ ~ ca c~ ° ~ m ~ a~ ~ ~ ~ ~ ~ ~ oa a i ~a3~ ~~ o~ m•~ o ° ~m ~~E aa~ioa~ y.. fA ~~ N = w >+ ~ N~ O L O ~+ c. C ~ fq L ~ O N N ~ ~ C (A O m c- ~ o•c L ca ~ °~ c ~ ~ ' ~ m o~~ ~~ ca ~ _ ~ .~ .C U fB ~ U U ~ O . ~ t/1 U • O N ` ~ ~, O ~ >, ~ O . O O Cc Q N •U ~ N '_~ 'a N .~ (0 .~-> Y- '~ Q O i C ~ yam,, ~ O O O N O C O~~ Un "- i a O~~ o ~ p U ` o ~ '~"~ a~ O N a O~~ •~ ~ a ~-o ~ ~ O c N a > c N ~ Q H~ ~ ~ v i i i ~ u a c n ~ a a i ~ ~ a~ ~ ~ _ ~ ~ 4 0 ° ~ I ~ a ~ ~ `a~ ca ~.~ ca ~ u Q ~ ~ ~ a ~ ~ o~ ~w o~ ~ o ~ ?~ • ~= ~- ~~ UO i v ~ 0 0 V O~ ~ ~~ w N i L a ~ i N j -~ ~ J C ~ ~ ~'~ Q ~ ~ ~ Q ° •~ .~ ~ ~ ~ ~ ~ ~ Q I~-U ' a ~~ oa ~ ~~ i a ia ~(A a m o U o .I ray UI- O F- ~/~ - 3 CITY OF RICHFIELD GUIDELINES AND INSTRUCTIONS FOR 2010 FUNDING ASSISTANCE The City of Richfield is offering Social Service grants non-profit agencies serving the city of Richfield. Funding parameters and priority goals for the purpose of making the best use of funds are as follows: Funding Parameters Any non-profit organization is eligible to apply. Projects must serve Richfield residents. Because of limited funds, requests made should not cover all expenses of a proposed service. Priority Goals Projects must address at least one of the following priorities: Services for vulnerable senior residents Services for individuals, families, teens and/or children at risk Housing support services for low-income persons and persons at risk Award Criteria Priority will be given to proposals that meet the following criteria: • Demonstrated need of the proposed service for the targeted population. • Collaboration with other service providers. • Participation in the Richfield Community Council and Hennepin South Services Collaborative and its related activities. • Efforts to serve cultural/ethnic/racial populations and low-income persons. • Demonstrated value to the community. • Does not duplicate services to Richfield residents. Com leted a lications must be submitted b November 16, 2009 ~~-~ Com leted a lications must be submitted b November 16, 2009 APPLICATION INSTRUCTIONS The attached Application for Funding Assistance must be used in your request for funds. All requests for funding must include the following information: • Typewritten responses to all questions on the 2010 Application. • Agency/program name and address, contact person name, title, phone #, fax #, and Email address as applicable. • Please do not include expensive binding, brochures, letters of support or materials not asked for in the application. • NOTE: You must use the updated 2010 Instructions and Application Questions. Submit 1 original (2-sided printing) and 1 email copy of completed application by November 16, 2009 to: Karen Barton Community Development Manager City of Richfield 6700 Portland Avenue Richfield, MN 55423 kbarton(a~cityofrichfield.org The City will review applications for social service funds. Applicants may be asked to respond in writing to additional questions. The City will determine 2010 funding recommendations in December, 2009. The Richfield City Council will award grant funds in January,. 2010. Agencies awarded social services grants will be required to sign a service agreement for calendar year 2010 and submit semi-annual reports on service outcomes. Please contact Karen Barton at 612-861-9777 or kbartonC~cityofrichfield.or_g with any questions and for assistance in completing grant applications. Com leted a lications must be submitted b November 16, 2009 ~a-5 CITY OF RICHFIELD 2010 APPLICATION FOR SOCIAL SERVICE FUNDING ASSISTANCE PROPOSAL HEADING 1. Agency name, address, contact person, and phone/fax/email 2. Amount of request 3. Brief description of service(s) provided 4. Identify priority area(s) you are addressing: a) Services for vulnerable senior residents b) Services for individuals, families, teens and/or children at risk c) Housing support services for low-income persons and persons at risk d) Other: Please Specify ADMINISTRATION 1. Provide a mission statement for your agency. 2. Provide verification of your organization's non-profit legal status. 3. Indicate your total agency budget for 2010.' 4. Indicate your proposed project budget for 2010. Itemize proposed expenses and describe as applicable. Indicate both proposed City funds and other funds to support the project. PROGRAM 1. Describe service to be funded. Include: a) Brief statement detailing the service is and how it is provided b) Target population(s); estimated number of unduplicated individuals you plan to serve residing in the City of Richfield c) Eligibility criteria and process d) How clients are involved in the planning process for service e) Desired client outcomes and methods of evaluating and measuring client progress (use attached "Proposed Outcome/Evaluation Methods" form) 3. Demonstrate the need for the proposed service. 4. Describe efforts to outreach to target population, including immigrant and low- income individuals. 5. If city funds were- reduced or not available after 2010, how you would continue to provide the service. COLLABORATION EFFORTS 1. Are you a partner in the Richfield Community Council, Hennepin South Services Collaborative or the Children's Mental Health Collaborative? If so, briefly describe your involvement. 2. Describe your efforts to collaborate with other agencies including your involvement in developing and participating in these collaborations. Please contact Karen Barton at 612-861-9777 or kbarton(~cityofrichfie/d.org with any questions and for assistance in completing grant applications. Com leted a lications must be submitted b November 16, 2009 ~~'~ O T 0 N N N i O ~s a~ C _O v W ~~ d d ~ 3 .p ~ ~_ ~ O O ~a O V 0 N ._ O C ca V .Q Q '~ N O y d O ~ ~ za O L a V C 0 v .4+ N 7 L :rl. •~ ~ C E~ W = s 's 3 L d .~ d N O C .~ V N d ~ ~ O d am -a d N O Q N O y i Q of ~ C ~ ~ • 7 O ~ - > v d d O L N H ~ ~ d O ~ d- = ~ ~ 3 ~ O L d O p t L 0 V ~ O a~ ° U O N ~ ~ ~ ~ N O ~ ~ O O O. ~ .n ,~ ~ U O O ~ ~ U 3 ~ O ~ O Q. ~ ~ ~ ~ L O ~ Q~ N O C ~ UY•- ~ N : ~ ~ ~ ~ O i _ p to ~a v ca~a~ ~ O U O ~ O L U O ~•~ (B .~ .Q ~ C~ U ~ ~ •C N Rf L , ~ L. v N O ~ V ~ }; ~ ~ ~ ~ ~ <C .~ ` -- . ~ L ~ ,ca 'a v G> N ~ •- a~ co ~ •~ ~ ~ d ~ ~ ~ ~ ~ ~ ~ M O v <n ~ Q ~ ' N c iu ca in O .cU=~ . ~ ~ 3~~~ + `~ ~ a~ U ~ O O L U ~- N C ~ .~Ch d I O "a E as ~-a~° O v m a~ V ~r •- ~ ~~ o 'a U '- O > te . 0 N .-'' ~ a .. a~~ o AGENDA SECTION: CONSENT AGENDA ITEM # ~$ _ REPORT # 1 ~ _ ~- STAFF REPORT CITY COUNCIL MEETING Ja1vUARY 26, 2010 REPORT PREPARED BY: BRAD SVEUM -FIRE SERVICES DIRECTOR NAME, TLTLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution authorizing the dispatch and use of City equipment and services b the Cit Mana er, or his/her desi nee in emer enc situations. I. RECOMMENDED ACTION: By motion: Adopt the resolution authorizing the dispatch and use of City equipment and services by the City Manager, or his/her designee in emer enc situations. II. BACKGROUND During emergencies of any type the resources of the City of Richfield may not be great enough to deal with the situation and additional personnel and equipment is requested from neighboring cities. The City of Richfield may also be requested to send. resources to aid another city in similar situations. When requests for such resources are received there usually is not time for the City Council to convene and authorize- the dispatch of personnel or equipment. Currently the City has mutual aid agreements, which have been authorized by the City Council, in place with surrounding cities for the sharing of resources during emergencies. The Hennepin County Fire Mutual Aid agreement is an example. In recent_years there have been emergencies or disasters in the State of Minnesota which have required resources to be requested statewide to combat. 0126Fire A city may send resources beyond the geographical limits of it's current mutual aid agreements. This may be done by one of two ways, 1) the City Council may meet and authorize the dispatch of resources, however this may not be timely during an emergency, or, 2) by a resolution authorizing the City Manager, or his/her designee to dispatch resources. If the City Council desires that the City Manager be authorized to send resources they must do so by resolution in accordance with Minnesota Statute 12.27. The City Manager's designee in these situations would be the department director such as the Fire Chief, Police Chief or Public Works Director as appropriate to the type of event and resources requested. Emergency response organizations within the State of Minnesota are developing- a statewide mutual aid plan. Such a plan greatly increases the depth of resources available to all cities while reducing the response time. This resolution would allow Richfield to participate in it in accordance with Minnesota Statute 12.27. III. BASIS OF RECOMMENDATION A. POLICY • The City of Richfield currently participates in and has mutual aid agreements with neighboring municipalities. • This resolution authorizes the City Manager, or his/her designee, to dispatch equipment or personnel to emergencies beyond the boundaries of existing mutual aid agreements. ` • A plan is being developed to aid in the requesting, sending and managing of resources on a statewide basis. B. CRITICAL ISSUES • Local resources may quickly be depleted due to a large emergency or disaster requiring aid from others to combat the event. • There have been several events in recent years where resources outside of a community's mutual aid agreements were required. • Convening the City Council in a timely manner to authorize the timely dispatch of resources to assist outside of the may not be possible. - • Adopting this resolution will allow the City of Richfield to respond to resource requests in times of emergencies and disasters. C. FINANCIAL • None D. LEGAL • This resolution allows the City of Richfield to send resources in .compliance with Minnesota Statute 1.2.27. • The City of Richfield is not bound or required to send resources by this resolution if requested. E. ENVIIZONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION~S~ • Do not adopt the resolution. However if response outside of the current mutual aid geographical boundaries was requested, the City Council would have to convene to authorize the response. V. ATTACHMENTS • City Council Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Fire Chief 3~- r RESOLUTION NO. RESOLUTION AUTHORIZING THE DISPATCH AND USE OF CITY EQUIPMENT AND SERVICES BY THE CITY MANAGER, OR HIS/HER DESIGNEE IN EMERGENCY SITUATIONS WHEREAS, the City of Richfield City Council finds that instances have occurred in the past and it can be anticipated in the future wherein there is a danger, by fire, hazard, weather, casualty or similar occurrences taking place or occurring outside of the boundaries of the City of Richfield; and WHEREAS, due to the suddenness of such occurrences, it would be impossible for the Richfield City Council to meet and authorize the dispatch and use of city equipment personnel to combat such fire, hazard, weather, casualty or similar occurrence; and WHEREAS, the City of Richfield City Council finds it desirable and necessary to authorize the`City Manager, or his/her designee, to exercise discretion, considering at all times the internal needs of the City of Richfield and its inhabitants to dispatch City of Richfield equipment and personnel deemed necessary to combat such occurrence whether it takes place within or without the City of Richfield boundaries. NOW, THEREFORE, BE IT RESOLVED that such dispatch and use as directed by the City Manager, or his/her designee, shall be fully authorized as an act of the City of Richfield and all provisions for compensation of personnel, rental of equipment, liability insurance coverage, workers' compensation insurance and all other safeguards and matters pertaining to the City of Richfield, it's equipment and personnel, shall apply in each case as if specifically authorized and directed by this City of Richfield City Council at such time, whether or not the governing body or authority of the place in which the fire, hazard, casualty or other similar occurrence exists, has previously requested and provided for assistance and use of the equipment and personnel under a mutual protection agreement or other type protection agreement with the City of Richfield. Further the City Manager, or his/her .designee, shall recall, order and terminate the use of such equipment and personnel when the need for their use no longer exists, or earlier, when at his/her discretion it appears in the best interest of the City of Richfield. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of January, 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: CONSENT AGENDA ITEM # 3C REPORT # 9(1 STAFF REPORT CITY COUNCIL MEETING JANUARY 2fi, 2010 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: JIM TOPITZHOFER, RECREATION SERVICES DIRECTOR NAME, T/TLE ITEM FOR COUNCIL CONSIDERATION: Consideration. of a resolution authorizing acceptance of all grants and donations received by the Richfield Recreation Services Department and to authorize the city to administer the funds in accordance with grant agreements and terms prescribed b donors. I. RECOMMENDED ACTION: By Motion: Approve the resolution authorizing acceptance of all grants and donations received by the Richfield Recreation Services Department and. to authorize the city to administer the funds in accordance with grant agreements and terms prescribed by donors.. II. BACKGROUND The Richfield Recreation Services Department received several grants and donations from various sources and to fund different projects. III. BASIS OF RECOMMENDATION A. POLICY • Minnesota Statute 465.03 requires every acceptance of a grant or devise of real or personal property of more two-thirds majority of the City Council. The Administrative Services Department issued a memo on November 9, 2004 requiring that all grants and restricted donations to 0126 Rec Services Grants departments be received by resolution and by more than two-thirds majority of the City Council in accordance with Minnesota Statute 465.03. B. CRITICAL ISSUES • None C. FINANCIAL • All of the donations listed were given without obligation to provide any additional matching funds. D. LEGAL • Minnesota Statute 465.03 requires every acceptance of a grant or devise of real or personal property of more two-thirds majority of the City Council. E. ENVIlZONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION(S~ • None V. ATTACHMENTS • Council Resolution VI. PRINCII'AL PARTIES EXPECTED AT MEETING N/A 3C-[ RESOLUTION NO. RESOLUTION AUTHORIZING ACCEPTANCE OF ALL GRANTS AND DONATIONS RECEIVED BY THE CITY OF RICHFIELD AND TO AUTHORIZE THE CITY TO ADMINISTER THE FUNDS IN ACCORDANCE WITH GRANT AGREEMENTS AND TERMS PRESCRIBED BY DONORS WHEREAS, Minnesota Statute 465.03 reads in part as follows: Any city, county, school district or town may accept a grant or devise of real or personal property and maintain such property for the benefit of its citizens in accordance with the terms prescribed by the donor. Nothing herein shall authorize such acceptance or use for religious or sectarian purposes. Every acceptance shall be by resolution of the council adopted by two-thirds majority of its members, expressing such terms in full, and WHEREAS, the City of Richfield has received grants and donations as described below: DAtE _ _ June 2Q09 DONOR ~ _ - _ Shakopee Mdewakanton Sioux Communit AMOUNT $2,000 June 2009 Friends and Famil of Michael Frank Per $1,000 June 2009 Chorzempa Famil Foundation $2,000 July August 2009 Lunch Program Federal Reimbursement Grant $34,437.79 Au ust 2009 PMI $1,000 December 2009 Hennepin Count Youth Sports Grant $240,000 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: That the City Council of the City of Richfield hereby accepts all grants and donations as listed above for the year 2009 and authorizes the City to administer the funds in accordance with grant agreements and. terms prescribed by donors. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of January, 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: CONSENT AGENDA ITEM # 3D REPORT # 2 j STAFF REPORT CITY COUNCIL MEETING JANUARY 26, 2010 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ~~ CHRISTINE COSTELLO, COMMUNITY DEVELOPMENT SPECIALIST ITEM FOR COUNCIL CONSIDERATION: Consideration of resolutions for submittal of applications to Hennepin County for a Transit Oriented Development Program Grant and the Minnesota Department of Employment and Economic Development Redevelopment Grant Program for acquisition for redevelopment transit improvements and streetscape improvements throughout the community. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions approving submittal to Hennepin County for a Transit Oriented Development Program Grant and the Minnesota Department of Employment and Economic Development Redevelopment Grant Program for acquisition for redevelopment transit improvements and streetscape improvements throughout the community. II. BACKGROUND Transit Oriented Development Grant Program (TOD) It is appropriate to submit an application to access funds that support both redevelopment and new construction that enhances transit usage. The grant funds provided through the TOD grant program would allow for the installation of public infrastructure improvements, including safety enhancements that improve pedestrian, bicyclist, and transit rider access. The funds may also be 012610-TOD and DEED Grant Application used for site clearance and installation of streets, utilities, and site improvements for uses in accordance with a redevelopment project (i.e. Cedar Avenue Corridor Redevelopment Area). In the past, funds have been awarded to such projects that include bus shelters adjacent to commercial development, pedestrian lighting, and streetscape. Department of Employment and Economic Development (DEED) Grant Program It is appropriate to submit an application to access funds that support assistance to Cities to help encourage private development on parcels of land that have become unviable due to past uses and the need for more productive uses exists. The grant program gives priority to communities where there is potential for redevelopment within the community as well as the proximity to public transit. A requirement of the grant process is that a resolution indicating City Council support of the applications must be passed by the time the application is due on February 25, 2010 (TOD) and on February 1, 2010 (DEED). There are a number of potential projects (ranging from $80,000 to $300,000 in total cost) that have been identified as potential uses of the TOD and DEED grant funds. Richfield staff will be meeting with staff people from both agencies to determine which of these projects would be most likely to receive funding. Examples of these potential projects include: ^ Acquisition of property in redevelopment areas (on Penn Avenue, East 66th Street and/or in the Cedar Avenue Corridor); ^ streetscape improvements (on Penn Avenue and/or East 66th Street); ^ Enhanced bus shelters (on Lyndale Avenue, Penn Avenue and/or East 66th Street). III. BASIS OF RECOMMENDATION A. POLICY • It is appropriate to seek outside funding whenever possible. B. CRITICAL ISSUES • Receiving TOD and DEED grant funding the City will be able to set an example to the property owners and businesses along the City's Corridors and Redevelopment areas on what commitment the City has towards acquisition for continued development as well as streetscape and transit improvements. • By the City of Richfield taking the first step in applying for funding, we will show our commitment into reinvestment, revitalize, -and redevelopment in the community. C. FINANCIAL • No local match is required for the TOD grant program, but the grant program gives preference to projects in which substantial investments from other sources are committed. • A local match for the DEED grant program is required. The local match must pay for 50% of the costs. D. LEGAL • The program guidelines for both the TOD and DEED grant require the City Council to pass a resolution in support of each of the applications. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Deny authorization and direct staff to withdraw the applications. V. ATTACHMENTS • Resolution authorizing application to the TOD grant program. • Resolution authorizing application to the DEED grant program. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A ~b al RESOLUTION NO. RESOLUTION AFFIRMING AND RATIFYING CITY STAFF SUBMITTAL OF AN APPLICATION TO HENNEPIN COUNTY FOR TRANSIT ORIENTED DEVELOPMENT (TOD) PROGRAM GRANT FUNDS FOR PENN AVENUE SOUTH WHEREAS the City of Richfield (the "City") is a city located within Hennepin County and is therefore eligible to access the Transit Oriented Development (TOD) Grant; and WHEREAS the City has the institutional, managerial and financial capability to ensure adequate project administration; and WHEREAS the City certifies that it will comply with all applicable laws and regulations as stated in the contract agreements; and NOW, THEREFORE BE IT RESOLVED that the City Council affirms and ratifies the submittal of application in accordance with Minnesota Statutes § 383B.77, Subd. 3., supports the TOD loan/grant application submitted to the Hennepin County Housing and Redevelopment Authority on behalf of the City of Richfield and authorizes the Mayor and City Manager to execute such agreements as are necessary to implement the project on behalf of the applicant. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of January 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 012610-TOD and DEED Grant Application ~~~ RESOLUTION NO. RESOLUTION AFFIRMING AND RATIFYING CITY STAFF SUBMITTAL OF AN APPLICATION AND COMMITTING LOCAL MATCH AND AUTHORIZING CONTRACT SIGNATURE TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT (DEED), BROWNFIELDS AND REDEVELOPMENT UNIT FOR REDEVELOPMENT GRANT FUNDS WHEREAS the City of Richfeld (the "City")'is a city located within Hennepin County and is therefore eligible to access the Redevelopment Grant Fund; and - WHEREAS- the City has the institutional, managerial and financial capability to ensure adequate project administration; and -WHEREAS the City certifies that it will comply with all applicable laws and regulations as stated in the contract agreements; and NOW, BE IT RESOLVED that the City of Richfield has approved the redevelopment grant application submitted to the Department of Employment and Economic Development (DEED) on February 1, 2010, by the City of Richfield. - BE IT FURTHER RESOLVED that the City of Richfield act as legal sponsor for project(s) contained in the Contamination Cleanup Grant Program to be submitted on November 1, 2007, and that the City Manager is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Richfield; and BE IT FURTHER RESOLVED that the City of Richfield has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration; and BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project identified; and BE IT FURTHER RESOLVED that the City of Richfield has not violated any Federal, State or local laws pertaining to fraud, .bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice, and BE IT FURTHER RESOLVED that upon approval of its application by the state, the City of Richfield may enter into an agreement with the State of Minnesota for the above- referenced project(s), and that the City of Richfield certifies that it will comply with all applicable laws and regulation as stated in all contract agreements; and NOW, THEREFORE BE IT FINALLY RESOLVED that the City Manager is hereby authorized to execute such agreements as are necessary to implement the project(s) on behalf of the applicant. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of . January 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: (,nNSF.'NT AGENDA ITEM # ~F REPORT # ~~ ~- STAFF REPORT CITY COUNCIL MEETING JANUARY 26, 2010 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: MICHAEL FLAHERTY, POLICE LIEUTENANT NAME, T/TLE ITEM FOR COUNCIL CONSIDERATION: Consideration of an agreement between Wal-Mart and the City of Richfield pertaining to fundin for the Richfield Police Department Canine Unit. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing the acceptance of additional grant funds from Wal-Mart Corporation to be used for funding the Richfield Canine Unit. II. BACKGROUND It is Wal-Mart's corporate policy to give back to the local community each year. Each store is authorized funds to be given to local organizations. The Bloomington Wal-Mart store, 715 East 78th Street, has been open for over fourteen years. Throughout their history they have made financial contributions to local organizations. The Richfield Police Department was selected as one of the local recipients of this grant money in the amount of $1,500. This is the second Wal-Mart grant awarded to Richfield as an identical grant was previously approved by the City Council at the January 12, 2010 Council meeting. m 0126 Wal-Mart Grant for K-9 Program III. BASIS OF RECOMMENDATION A. POLICY • Minnesota State Statute 465.03 requires that every acceptance of a grant or devise of real or personal property on terms prescribed by the donor be made by resolution of more than two-thirds majority of the City Council. • The Administrative Services Department issued a memo on November 9, 2004 requiring that all grants and restricted donations to departments be received by resolution and passed by more than two- thirds majority of the City Council in accordance with Minnesota Statute 465.03. B. CRITICAL ISSUES • The Wal-Mart grant is for use by the Richfield Police for their canine unit expenses, C. FINANCIAL • The grant funds of $1,500 will be designated for the Police Canine unit. D. LEGAL • N/A E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could disapprove the resolution which would void the agreement. V. ATTACHMENTS • Resolution Number VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None .~~-i RESOLUTION NO. RESOLUTION AUTHORIZING RICHFIELD/POLICE TO RECEIVE ADDITIONAL GRANT FUNDS FROM WAL-MART, BLOOMINGTON, TO ASSIST THE RICHFIELD POLICE CANINE UNIT WITH THE MAINTENANCE AND CARE OF THE TWO RICHFIELD CANINES WHEREAS, the Bloomington Wal-Mart corporation has a policy to give back to the local community each year; and WHEREAS, the Bloomington Wal-Mart has throughout their history made financial contributions locally; and, WHEREAS, the Bloomington Wal-Mart previously presented a grant to Richfield Police that was approved by the City Council on January 12, 2010; and WHEREAS, Richfield Police has again been selected as the recipient of grant funds designated for the Richfield Police Canine Unit. NOW, THEREFORE, BE IT RESOLVED that Richfield Public Safety/Police will accept a community grant of an additional $1,500 from the Bloomington Wal-Mart store. Adopted by the City Council of the City of Richfield, Minnesota this 26th day of January 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: CONSENT AGENDA ITEM # 3F REPORT # 23 STAFF REPORT CITY COUNCIL MEETING JANUARY 26, 2010 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: CHRIS REGIS, FINANCE MANAGER NAME, TITLE ITEM FOR COUNCIL CONSIDERATION: Consideration of closing the Parking Project Capital Project Fund and transfer of the residual assets to the Cit Hall Project Fund. I. RECOMMENDED ACTION: By Motion: Approve the closing of the Parking Project Capital Project Fund and transfer of the residual assets to the Cit Hall Pro'ect Fund. II. BACKGROUND In 1994, the City established a Parking Project Fund that was created as a capital project fund to account for improvements to City owned parking lots. Several of the City's parking lots were in a state of disrepair and. required costly attention. The specific parking lots that were to be improved were the City Hall lot, Fire Station II, the Community Center lot, and the lot at Donaldson Park. Funding for these improvements/repairs/replacements was set aside from the General Fund and the Special Revenue Fund. Improvements were made to the lots and after the projects were completed, the fund was under-spent. The project fund remained open and the relatively small balance continued to accumulate interest earnings. At this time, the next major parking lot that is currently scheduled for replacement is the Ice Arena Parking lot. However, accumulated funding for this capital improvement was completed in 2009 and set aside for work to commence in 2010. 0126Parking Project:Fund Closing This Parking .Project Fund could now be closed out and the remaining balance of $47,074 transferred to another project. The most logical choice as the designated fund to receive this balance is the New Municipal Center project fund. There are both parking lot and park restoration matters that must be addressed in this project and the additional funding would be helpful III. BASIS OF RECOMMENDATION A. POLICY •~ The City's financial policies do not directly address the closing out of accounting funds. • A basic principle of government accounting states that a government should use the least number of individual funds possible, consistent with its particular circumstances. • Accordingly, since the two funding sources for the original parking lot projects were the General Fund and the Special Revenue Fund, it would be appropriate to transfer the- residual assets to the City Hall project fund as this project includes the construction of a General Fund capital asset and the restoration of a City park. B. CRITICAL ISSUES • While the timing of this fund transfer is not time critical, it would be helpful to transfer these funds at this time as staff seeks additional funds to address project needs without placing any greater burden on citizens and or businesses in the community. C. FINANCIAL • The balance of residual assets to be transferred to the City Hall Project Fund is $47,074. D. LEGAL . • There are no legal requirements for the transfer of these funds other than City Council approval. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDA' e City Gouncu cou S) not to close this fund and keep it open for a future purpose. _ The City Council could suggest closing out this fund to a different recipient fund. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. ~~ STAFF REPORT AGENDA SECTION: AGENDA ITEM # REPORT # CITY COUNCIL MEETING JaIVUARY 26, 2010 RESOLDTION 5 24 REPORT PREPARED BY: STEVEN L. DEVICH, CITY MANAGER NAME; TITLE REVIEWED BY CITY .. MANAGER: AIIeIr. ~ ITEM FOR COUNCIL CONSIDERATION: ' Consideration of a resolution expressing support for a statewide Complete Streets Policy I. RECOMMENDED ACTION: By Motion: Adopt a resolution expressing support of a statewide Complete Streets Polic . II. BACKGROUND At the January 12, 2009 City Council Meeting Mayor Goettel indicated that she would be bringing a resolution forward to the City Council on January 26, 2009 regarding. the issue of a statewide Complete Streets Policy. This action addresses that issue. "Complete streets" are designed and operated to enable safe access for all users. Pedestrians, bicyclists, motorists and transit riders of all ages and abilities are able to safely move along and across a complete street. Communities across thecountry, .including Hennepin County, have created complete street resolutions and policies.. These resolutions and policies are varied in complexity and legal ramifications. The Minnesota Department of Transportation (MnDOT) at the direction of the Minnesota State Legislature has convened a complete Streets Study Committee and Technical Advisory Panel to gather information and feedback about what a Complete Streets Policy would mean for Minnesota. The study focused on identifying the benefits, costs and feasibility of adopting a "complete streets" policy 0126Complete streets in Minnesota. The Complete Streets Final ReporE can be found at the following website, http~//www dot.state.mn.us/glanning/campletestreets/legislation:html There is a movement by various agencies to pass a statewide Complete Streets law in 2010 which would direct the Minnesota Department of Transportation to adopt and implement a complete streets policy on all transportation projects to provide a full menu of transportation options to meet the needs of everyone using the roads. The Minnesota State Legislature reconvenes February 4, 2010 to discuss the Complete Streets Report. III. -BASIS OF RECOMMENDATION. A. POLICY • If the City Council supports the statewide Complete Streets Policy it would be appropriate to adopt a resolution expressing such support. B. CRITICAL ISSUES • If the City Council supports the Complete Streets concept it would be best to adopt a resolution of support before the MN legislature convenes to discuss the Complete Streets Report. C. FINANCIAL • There is no financial obligation with adopting this resolution. D. LEGAL • None E. ENVIIZONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • The City Council could decide not to adopt a resolution of support for the statewide Complete Streets Policy. V. ATTACHMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None .~ ~r RESOLUTION NO. r EXPRESSING SUPPORT OF A STATEWIDE COMPLETE STREETS POLICY WHEREAS, the "Complete Streets" concept promotes streets that are safe and convenient for all users, including pedestrians, bicyclists, transit riders, and motor vehicle drivers of all ages and abilities; and WHEREAS, the October 2009 public draft of the Minnesota Department of Transportation Complete Streets Report includes the recommendation: "Mn/DOT should build on existing Context Sensitive Solution practices and develop and implement a statewide Complete Streets policy..."; and WHEREAS, the Richfield City Council recognizes the importance of complete streets, as shown in its 2008 Comprehensive Plan update; WHEREAS, the Richfield City Council supports a statewide Complete Streets program that is process-based rather than design prescriptive, allowing engaged citizens to determine what a complete street looks like project by project; NOW, THEREFORE BE IT RESOLVED, that the City of Richfield encourages the Minnesota legislature, with input and guidance from the Minnesota Department of Transportation, to authorize the development of a statewide, process-based, Complete Streets program, which would provide for the development of a balanced transportation system, through appropriate planning, that integrates multiple transportation modes, where appropriate, for transportation users of all types, ages and abilities. ADOPTED this 26th day of January, 2010. Debbie Goettel, Mayor Attest: Nancy Gibbs, City Clerk AGENDA SECTION: OTHER BUSINESS AGENDA ITEM # 6 REPORT # 2S r STAFF REPORT CITY COUNCIL MEETING JANUARY 26, 2010 REPORT PREPARED BY: REVIEWED BY CITY MANAGER: L~d~ KRUMHOLZ, EXEC. COORDINATOR: NaxE ITEM FOR COUNCIL CONSIDERATION: Consideration of appointments to City advisory commissions. I. RECOMMENDED ACTION: By motion: Appoint persons to fill the expiring or vacant terms on the Cit adviso commissions. II. BACKGROUND Several terms of City commission members expire on January 31, 2010. In addition, there are mid-term vacancies due to resignations that need to be filled. Vacancies were advertised in the Richfield Sun-Current, on cable television channel 16 and the City's Website. The City Council made some appointments at the January 12, 2010 City Council Meeting. However, there are vacancies still needing to be filled. III. BASIS OF RECOMMENDATION A. POLICY • The City advisory commissions were established by City ordinance or resolution. Terms are for three-years and are staggered. Several terms expire on January 31 annually. The Council directs the City Manager's office to conduct a recruitment seeking applicants to fill the vacancies. Interviews of the applicants are conducted at Special City Council meetings. These Council meetings were posted in accordance with.the open meeting law requirements. 0126commission B. CRITICAL ISSUES • Applicants were interviewed at Special City Council meetings. • Terms of several commission members expire on January 31, 2010.. IV. ALTERNATIVE RECOMMENDATION~S~ • Defer appointments to a later Council meeting. V. ATTACHMENTS • Commission vacancy list VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. 0 0 N_ N W_ V Z a a z O C~ G O V l~~ M M N~ M ~ M N N' M M N N N~ ~ r ~ ~~~~ ~ ~ ~ ~ r ~ r ~ ~~~ ~ 0 0 ~~~~~~~ ~ ~ ~ ~ ~ ~ ~ ~ N N N N N N N N N N N N N N N N N ~ •, L r M .. r-~~r M M M M r M r M ~~~ M M M '~~r-c-~~-c- M M M M M M M X f6 td (0 (a ca (a (Q (0 t0 (6 (6 (B (6 t6 (Q (ti (B ~ ~ ~ ~ ~ ~ ~ L E L L 1 ~_ ±+ 'C c~_ ~ C i N H E L J ~ Q W ~ 2 `~ 0 ~ N ~ ~ Z 'O^ O ~ =/ m ~O U ~_ N ~ H Q Q L .,~. ~ ~ ~ 1 ~ ~ W W N J U L r Z 'O V/ ~_ O U N i~ W UL N N ~ W '~ ~~ ~_ Z V E a~ .~ N .;. r Z /O A N O V a_ N D Z W E a~ .~ ~C C L N 'z V/ N i1~~ ~~ O .Y +~+ V ~~ N ~ ~ 2 Z Q ~ ~ ~ ~ ~ L L L L L ~ ~ ~ i ~ ~ + ~ ~ ~ ~ ~ ~ U J U AGENDA SECTION: OTHER BIISINESS AGENDA ITEM # 7 REPORT # 26 ~~ STAFF REPORT CITY COUNCIL MEETING - JANUARY 26, 2010 REPORT PREPARED BY: PAM DMYTRENKO, ASSISTANT TO I AGER NAME, T7TL REVIEWED BY CITY MANAGER: ~LKri t ~ ITEM FOR COUNCIL CONSIDERATION: Consideration of the award of contracts for the new Richfield Municipal Center. I. RECOMMENDED ACTION: By Motion: Accept the bids as recommended by Stahl Construction Compan on the attached report in the amount of $4,247,175. III. BACKGROUND On December 22, 2009, bids were opened for 47 packages for the new Richfield Municipal Center project. The City Council awarded 13 of those .contracts on January 12, 2010. As Dale Sonnichsen, Stahl Construction Co. Project Manager, indicated at the January 12 meeting, more contracts will continue to be brought before the City Council as contractor interviews are completed. Since January 12, 2010, Mr. Sonnichsen has completed 22 more interviews of the lowest qualified bidders. As the City's construction manager, Stahl Construction Co. is recommending acceptance of these packages which are indicated on the attached list. A bid opening date of February 16, 2010 has been set for the packages that were rejected by the City Council at its January 12, 2010 meeting, on the recommendation of Stahl Construction Co. and Wold Architects, in order to reduce the work scope. - III. BASIS OF RECOMMENDATION 0126bid awards A. hOLICY . • Per City Ordinance, the ad for bids was published in the Sun Current on November 19, 2009 and November 26, 2009 and bid openings were held on December 22,.2009. • All of the recommended contractors are the lowest responsible bidders and are established contractors that meet all of the City's requirements. • Under the City's Purchasing and Spending Authority .policy, contracts estimated to have a value over $100,000 require that sealed bids be solicited through public notice. B. CRITICAL ISSUES _ The Council •must acceptor reject bids in a timely manner since the bids expire 60 days from December 22,-2009. • Approval of the recommended contracts-will provide contractors the necessary time to schedule work to meet our construction timeline. C. FINANCIAL • The 22 contracts being recommended for award on January 26, 2010 are valued at $4,247,175 and are within the anticipated cost for each scope of work. • At this juncture, the total cost of the accepted bids is $12,102,590. The project is still approximately $867,000 over the estimated construction bidding budget of $17,645,000 (which does not include the potential additional costs of vertical fins, humidification and possible audio visual design by Orfield Labs). The re-bidding of selected bid packages should assist in reducing the cost overage. However, those packages will not be opened until February 16, 2010 and then must be reviewed for accuracy so any savings are unknown at this time. City staff directed Stahl Construction Co. to accept the lowest bidder for the built-up roof versus the TPO roof, which were bid separately. The cost difference of $23,243 to install the built-up roof will be financed separately from the project through the Government Buildings Fund. There are many reasons for installing abuilt-up roof, these include: less problems with leakage, bad experience with TPO roofs, good value from the bids and construction timelines to meet. D. LEGAL All contracts that exceed $25,000 require Council approval. • Contracts estimated in value between $25,000 to $100,000 can be made either by sealed bids or by direct negotiation based on quotes. • All contracts over $100,000 .require that sealed bids be solicited by public notice. E. ENVIRONMENTAL CONSIDERATIONS • Environmental considerations have been made in all aspects of project planning. IV. ALTERNATIVE RECOMMENDATION~S~ • Council may chose to reject any of the bids and direct staff to obtain new bids. However, re-bids will likely delay the project and/or increase costs. V. ATTACHMENTS • Letter from Dale Sonnichsen, Project Manager, Stahl Construction Co. • Bid tabulation from Stahl Construction Co. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • ' Dale Sonnichsen, Stahl Construction Co. • Mike Klass, Wold Architects & Engineers .~j~ STAHL the PEOPLE. the PROJECTS. the PROMISE. STAHL CONSTRUCTION COMPANY January 21, 2010 Mr. Steve Devich City Manager City of Richfield 6700 Portland Avenue Richfield, MN 55423 RE: Bid Award Recommendations New City Hall /Fire /Police Project Dear Mr. Devich: After receiving bids on December 22, 2009, and after interviewing the apparent low bid contractors below, we .recommend acceptance and award for the fa8owing contracts at the next City Counci) meeting: Contract 13 -Carpentry and Specialties Crossroad Construction, inc. 1232 -171 ~- Lane NE; Suite 200 Ham Lake, MN 55304 $ 435,370 Contract 14 -Architectural Woodwork Aaron Carlson Corporation 1505 Central Ave N.E. Minneapolis, MN 55413 Contract 1 b -Traffic Topping Carciofini Company 755 East Cliff Road Burnsville, MN 55337 Contract 17 -Sprayed Foam Insulation Southern Minnesota urethane LLC 400 West Highway 52 / PO Box 181 Canton, MN 55922-0181 Contract 18 - Rainscreen Wall Panels Division V Sheet Metal, Inc. 218 Ohio Street St. Paul, MN 55107 Contract 19A -Built-up Roofing Bernard L. Dalsin Company 8824 Wentworth Avenue South Bloomington, MN 55420 $ 141,539 $ " 5,400 $ 43,500 $ 460,000 $ 465,000 www.stahlconstruction.com 5755 Wayzata Blvd. St. Louis Park, MN 55416 ° 952-931-9300 fax 952-931-9941 An affirmative action, equal opportunity employer ~~ Contract 21 -Sealants and Firestopping Carciofini Company $ 92.785 755 East Cliff Road Burnsville, MN 55337 Contracts 23 -Coiling Doors and 24 -Sectional Overhead Doors Overhead Door Co. of the Northland $ 78,110 3195 Terminal Drive Eagan, MN 55121 Contract 27 -Drywall and Plaster RTL Construcfion, inc. $ 744,469 4000 Valley Industrial Blvd. So. _ Shakopee, MN 55379 Contract 28 -Tile CD Tile and Stone, Inc. Base Bid $ 328,200 3103 103~d Lane NE, Ste 160 Less Alternate #1 (Deduct} $ {90.630) Blaine, MN 55449 Total Contract $ 237,570 Contract 29 -Terrazzo Advance Terrazzo and Tile Co., Inc. $ 108,000 425 Coon Rapids Blvd. Coon Rapids, MN 55433 Contract 30 -Acoustical Ceilings and Wa[I Panels Sonus Interiors, Inc. $ 189,400 2440 Fernbrook Lane No., #200 Plymouth, MN 55447 Contract 31 -Carpet and Resilient Flooring MCI, Inc.' $ 224,990 26 1 ~ Avenue Waite Park, MN 56387 Contrail 33 -Resinous Flooring Flor Dek Coatings LLC - $ 44,300 1733 Brunswick Road Harris, MN 55032 Contract 34 -Painting and Wallcovering Steinbrecher Painting, Inc. $ 176,400 1408 7"' Street No. P.O. Box 159 Princeton, MN 55371 Contract 37 -Lockers Haldeman-Homme, Inc. $ 94,609 430 Industrial Bivd. N.E. Minneapolis, MN 55413 Contract 38 -Operable Shelving Mid-America Business Systems $ 21,772 2500 Broadway Street N.E. Minneapolis, MN 55413 ~~~ Contract 40 -Detention Equipment Stronghold Industries, Inc. $ 25,800 2000 Oakes Road Racine, WI 53406 Contract 41 Firing Range Equipment Action Target, Inc. $ 179,850 341 i South Mountain Vista Parkway, P.O. Box 636 Provo, UT 84606 Contract 42 Plastic Laminate Casework LSI Corporation of America $ 183,122 2100 Xenium Lane Plymouth, MN 55441 Contract 43 -Elevators Schindler Elevator Corporation $ i 23,800 895 Blue Gentian Road Eagan, MN 55121 Contract 44 -Fire Protection Breth - Zenzen Fire Protection, LLC $ 171,389 11 College Avenue No., P.O. Box 697 St. Joseph, MN 56374 The total of the above contracts is: $4,247,175 The date of the bid opening for the contracts being rebid is February 1 b"'. I would anticipate bringing them to Council either 2/23 or 3/9, along with the remaining six contracts that f am in the process of interviewing. Upon receipt of your authorization, I will prepare contracts and get insurance certificates from the above contractors. 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