01-26-10 WorksessionJ
CITY COUNCIL MINUTES
Richfield, Minnesota
Special Worksession
January 26, 2010
CALL TO ORDER
The meeting was called to order by Mayor Goettel at 6:04 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;
John Stark, Community Development Director; Christine Costello;
Community Development Coordinator; Robert Hintgen, Utility
Superintendent; and Cheryl Krumholz, Recording Secretary.
Item #1 PRESENTATION BY MICHAEL DEVELOPMENT AND ST. CROIX REAL ESTATE
REGARDING POTENTIAL DEVELOPMENT OF WOODLAKE PLAZA (COUNCIL
MEMO N0.5)
Community Development Director Stark stated on October 27, 2009, Michael Development
and St. Croix Real Estate made a presentation at a City Council Worksession regarding their
proposed development at~6401 Lyndale Averiue. 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 with supporting documentation.
Terry McNellis, developer, and Paul Keely, architect from Collage Urban Design Studios,
made a presentation including:.
• 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;
Special Worksession Minutes -2- January 26, 2010
• A sources and uses statement showing project funding; and
• Tax Increment Financing projections.
Council Member Wroge expressed concern regarding affordable housing units, parking
issues, anticipated transit use, potential over occupancy and tax increment financing assistance
Council Member Sandahl stated it was not appropriate to tell the developer there is not
enough .parking when the City Code has been met.
Community Development Director Stark explained the parking space range per unit as
defined in the code. In the past, a parking study is completed to obtain realistic expectations: He
added daytime parking space appears to be the issue, not the evening, in mixed-use
developments.
Council Member Elliott stated there needs to be a balance, which always has risks between
recognizing public transportation alternatives or multiplying parking space requirements.
Mayor Goettel said the move is in the direction of public transportation use buf Metro
Transit service is limited.
Council Member Wroge stated that he believed the developer meets the minimum not
maximum parking requirements and then requests public financing assistance.
Mayor Goettel said tax increment financing assistance is difficult for her to accept because
of budget issues and this is a prime real estate location, especially if the area in 66th
Street/Lyndale Avenue changes.
Rebecca Kurtz, Ehlers & Associates, reviewed an estimated summary tax analysis for the
proposed redevelopment, including the HRA administrative fee.
Council Member Wroge requested a Council Memo be provided on the estimates. He
added there is a reduction in the City portion of the taxes.
Mayor Goettel asked about the lender's commitment on the project.
Mr. McNellis explained if no tax increment financing assistance is provided, the lender will
not underwrite the project funding.
Council Member Sandahl stated she liked the appearance of the development and was
supportive of seeing more.. She expressed her comfort with the funding because the total taxes is
in excess of what the City now receives, even if some of it is shifted to the HRA.
Council Member Elliott agreed with Council Member Sandahl to move forward.
Mayor Goettel stated she did not agree with tax increment financing assistance.
_ Council Member Wroge expressed support for the idea of the project but not for tax
increment financing assistance because there are too many tax increment districts with tax funds
not coming back to the City. s
Community Development Director Stark explained the Housing District tax increment
financing district requirements.
Special Worksession Minutes -3- January 26, 2010
The City Council consensus was that due to lack of time, discussion of the proposed
redevelopment should be continued to a future City Council Worksession..
Item #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)
Discussion of this item was postponed to a future Worksession.
ADJOURNMENT
The meeting-was adjourned by unanimous consent at 6:57 p.m.
Date Approved: January 26. 2010
Cheryl k'rumhoiz
Recording Secretary
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