2025-03-25 WS City Council Agenda W ORK SESSION
RICHFIELD MUNICIPAL CENTER, BARTHOLOMEW ROOM
MARCH 25, 2025
5:30 PM
Call to order
1.Consider additional advocacy related to the City’s legislative priorities for 2025.
2.Receive a presentation from MnDOT on Phase 2 of the I-494 reconstruction project.
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 612-861-9739.
AGENDA SECTION:Work Session Items
AGENDA ITEM #1.
STAFF REPORT NO. 8
WORK SESSION
3/25/2025
REPORT PREPARED BY: Katie Rodriguez, City Manager
DEPARTMENT DIRECTOR REVIEW:
OTHER DEPARTMENT REVIEW:
CITY MANAGER REVIEW: Katie Rodriguez, City Manager
3/19/2025
ITEM FOR WORK SESSION:
Consider additional advocacy related to the City’s legislative priorities for 2025.
EXECUTIVE SUMMARY:
Annually, the City of Richfield adopts its legislative priorities which is intended to portray the city's positions
on various issues. This list of priorities, or platform, is a summary document to help steer the city’s legislative
advocacy and outreach. During the legislative session, issues may emerge that are consistent with the
platform principles but not specifically detailed in the document. Staff plan to schedule additional time during
work sessions to update council on these issues and clarify City advocacy.
Staff are seeking guidance on the following legislative issues that have developed recently.
US Conference of Mayors Letter
The United States Council of Mayors has asked Mayor Supple to sign a letter to congressional leaders
advocating that any future tax bill retain bipartisan programs that have been successful federal partnerships
with cities including; low-income housing tax credits, Community Development Block Grants, tax exemption
for municipal bonds, direct pay energy credits, restoration/expansion of the child tax credit and maintaining
funding for Medicaid. The City of Richfield's residents benefit directly or indirectly from these programs. The
letter is attached to this staff report.
Support for legislation to establish a State-funded County and City Cybersecurity Grant Program
(HF140/SF379)
Public Works is requesting authorization to draft a letter in support of legislation creating a competitive grant
program to assist counties and cities with implementation of cybersecurity measures aimed at protecting
critical infrastructure. As proposed, the legislation would allocate $20,000,000 of state money to the grant
program and eligible projects would be funded at 100% up to $25,000 and 75% up to $1,000,000 per agency.
Eligible expenditures are spelled out in the bill but would generally include expenditures for hardware,
software, and professional services that bolster an agency’s cybersecurity programs. The legislation has
bipartisan authors in the Senate (including Senator Wiklund), DFL authors in the House, and is currently
sitting idle in each body’s respective state government policy/finance committee. This bill is believed to be
noncontroversial. If authorized, Public Works will prepare a brief letter of support for the Mayor and City
Manager to sign and will distribute the letter to the appropriate legislators.
Support for legislation that would extend the time period to use unobligated tax increment funding to
stimulate private development (HF2006 and SF2337).
In 2021, the Legislature provided temporary authority to use unobligated tax increment from existing tax
increment districts to help stimulate private development. The temporary authority allows cities to provide
loans, interest rate subsidies, or assistance in any form to private development so long as it consists of new
construction or substantial rehabilitation of buildings and ancillary facilities AND if doing so will create or
retain jobs in the State (including construction jobs). This is greater flexibility than would normally be allowed
with pooled tax increment funds, and it allowed the HRA to authorize a $750,000 forgivable loan to assist in the
construction of a food hall on the former Lyndale Gardens site. This temporary authority requires that
projects be under construction by December 31, 2025, and is therefore nearing expiration.
Bills were recently introduced in the House and Senate (HF2006 and SF2337) that would extend the deadline
to commence construction by two years to December 31, 2027. Staff recommend support for this
legislation. As you know, Luce Line Brewing has withdrawn their application for a food hall and our ability to
assist a new project at this site will be difficult without an extension. This is an important site in the community,
and it is very difficult for restaurants to finance new construction without assistance.
DIRECTION NEEDED:
Guidance on advocacy on the three identified legislative issues.
BACKGROUND INFORMATION:
A.HISTORICAL CONTEXT
City Council adopted the 2025 legislative priorities at their December 10, 2024 meeting.
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Equity Consideration: The US Conference of Mayors' letter advocates for the continuation of programs that
serve marginalized communities.
A cyberattack on critical City infrastructure, like water, could have a greater impact on marginalized
communities since they don't have the resources to replace services with private options.
Strategic Considerations:
If Congress eliminates or reduces funding for programs like affordable housing tax credits, CDBG or tax
exemption for municipal bonds it would negatively impact progress on most of the City's strategic initiatives due
to financial impacts.
Additional funding for cybersecurity would help ensure the strategic priority of Sustainable Infrastructure.
An additional two years to spend unobligated tax increment on private developments helps with progress on
both the Vibrant Downtown and Diversified Tax Base outcomes.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
D.CRITICAL TIMING ISSUES:
E.FINANCIAL IMPACT:
Cuts to federal programs that benefit City residents could have serious financial impacts which could reduce
service levels depending on the scale of the cuts.
A large cyberattack that damages critical infrastructure could exceed insurance limits, disrupt operations and
negatively impact the City's financial condition.
The recommended deadline extension allowing flexibility on tax increment supported projects does not impact
the overall tax increment funding available but would allow the option to support more types of private
development, including restaurants.
F.LEGAL CONSIDERATION:
ALTERNATIVE(S):
If there is not City Council consensus on the staff recommendations the City of Richfield will not take a
position on the legislation identified in the Executive Summary.
PRINCIPAL PARTIES EXPECTED AT MEETING:
ATTACHMENTS:
Description Type
United States Council of Mayors Advocacy Letter Cover Memo
The Honorable Mike Johnson
Speaker
United States House of Representatives (LA)
The Honorable John Thune
Majority Leader
United States Senate (SD)
The Honorable Hakeem Jeffries
Democratic Leader
United States House of Representatives (NY)
The Honorable Charles E. Schumer
Democratic Leader
United States Senate (NY)
Dear Speaker Johnson, Leader Thune, Leader Jeffries and Leader Schumer:
As the nation’s mayors, we write to express the opportunities we see in the upcoming re-
write of the 2017 tax law; and other components of the reconciliation bill.
At the outset, the tax bill should continue to build upon bipartisan proposals that advance
the federal-city partnership that has yielded strong economic growth over the decades. US
Metro cities and suburbs now are home to over 90% of the nation’s Gross Domestic
Product (GDP); 88% of its jobs; 94% of economic growth; and 74% of job growth in 2024.
Our metro economies provide the infrastructure and ecosystem for our nation’s future
economic growth.
Through our partnership with the federal government, cities have worked to create
opportunity for all our residents and to attract economic development benefiting both
urban and suburban communities.
We, therefore, support the following provisions in the reconciliation bill which we believe
will strengthen America and address critical national needs.
1. Provide major housing tax credits to spur production including a robust
expansion of the Low Income Housing Tax Credit, creation of the Neighborhood
Homes Tax Credit, tax credits to convert vacant commercial property to housing,
and expansion of the Historic Tax Credit. Research shows significant increases in
housing production directly correlate to reduced rents and the moderation of
housing prices, exactly what is needed to address our national housing crisis. But
these credits must spur sufficient production to adequately respond to the depth
and breadth of our nation’s shortage of units, which we estimate to be between 4-7
million. Given the role that rising home prices and rents play in “kitchen table”
inflation, we believe the production credits should be a top priority in the tax bill.
2. Provide full funding of the Community Development Block Grant (housing
rehab) and HOME Partnership (new construction) programs, along with
increased resources for FHA mortgage insurance, rental assistance, and
affordable housing programs to further address our housing crisis.
3. Protect tax exempt municipal bonds, including private activity bonds, which are
the main financing tool of locally funded, essential infrastructure, including
transportation, water and wastewater facilities, along with housing, schools, and
hospitals, to name a few. We oppose any effort to restrict this time-honored
mechanism for raising local revenues to support locally driven projects. State and
local governments finance 75% of the nation’s infrastructure, mostly through tax
exempt financing. Removing the tax exemption on municipal bonds would cost
households on average $6,500 over a ten-year period.
4. Continue innovative Direct Pay energy credits within the IRS to support local
government energy efficiency and conservation projects to lower energy bills.
Federal investment credits and direct pay policies provide a critical incentive for
leveraging investments in new and upgraded energy sources. Direct pay policies
also enhance local efforts to modernize the electricity transmission grid and ensure
that electricity transformers are available.
5. Restore and Expand the Child Tax Credit, proven to reduce child poverty in our
nation. In fact, CTC levels during our economic recovery reduced child poverty by
40%. This bill should do the same. An economically stable and secure family
enriches early childhood development and emotional health; poverty yields the
opposite. Expanding the CTC is an investment in the future of our children’s lives
and our nation.
6. Protect Medicaid benefits to ensure current levels of service and access to
health care. Medicaid is the principal source of health care funding for countless
seniors in nursing homes in cities and rural America alike; and is a major source of
health care for the nation’s children. We also want to emphasize the importance of
maintaining the funding for the Supplemental Nutrition Assistance Program (SNAP)
and other child nutrition programs, as they are vital for supporting child health.
The reconciliation package provides Congress the opportunity to solve the nation’s housing
crisis, protect tax exempt financing, fund essential community development and housing
assistance programs, significantly reduce child poverty, and protect health care for the
poor.
We look forward to working with you to fashion key components of the tax and
reconciliation bill that impact the American people’s daily lives and to address their most
urgent needs.
Sincerely,
AGENDA SECTION:Work Session Items
AGENDA ITEM #2.
STAFF REPORT NO. 9
WORK SESSION
3/25/2025
REPORT PREPARED BY: Matt Hardegger, Transportation Engineer
DEPARTMENT DIRECTOR REVIEW: Kristin Asher, Public Works Director
3/18/2025
OTHER DEPARTMENT REVIEW:
CITY MANAGER REVIEW: Katie Rodriguez, City Manager
3/19/2025
ITEM FOR WORK SESSION:
Receive a presentation from MnDOT on Phase 2 of the I-494 reconstruction project.
EXECUTIVE SUMMARY:
MnDOT representatives will be presenting information on Phase 2 of the I-494 Corridor Vision project,
including historical context of the vision's development, a recap of Phase 1, the current plans for Phase 2,
and a preliminary analysis of criteria outlined in Richfield's Regional Project Evaluation Framework.
DIRECTION NEEDED:
Provide Council perspective and feedback to MnDOT on items related to the upcoming Phase 2 of the
I-494 construction project.
BACKGROUND INFORMATION:
A.HISTORICAL CONTEXT
The I-494 Vision identified 9 project elements to construct on I-494 between Highway 77 and Highway 169.
Phase 1 of the project constructed/is constructing:
The 35W Interchange Flyover
E-ZPass lanes between Hwy 100 and I-35W
Reconstruction of the Nicollet, Portland, and 12th Ave Bridges + construction of the Chicago Ave Ped
Bridge
Phase 2 proposes to complete the remaining project elements:
E-ZPass Lanes from Hwy 169 to Hwy 100
E-ZPass Lanes from I-35W to Hwy 77
Reconstruction of the Pleasant Ave railroad bridge over I-494
82nd Street interchange and grade raise on I-35W
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
N/A at this point in time.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Staff have requested that MnDOT analyze Phase 2 of the I-494 project through the lens of Richfield's Regional
Project Evaluation Framework.
D.CRITICAL TIMING ISSUES:
MnDOT is currently in the process of revising their Hybrid Environmental Assessment for the project corridor in
2025 and will be writing the Design-Build contract prior to summer 2026. Letting for the Design-Build contract
is currently scheduled for Fall 2026.
E.FINANCIAL IMPACT:
Unknown at this time. Richfield is expected to have some amount of cost participation in the project, likely for
stormwater costs, but that current value has not been estimated.
The project is largely funded by a Federal INFRA grant that was awarded in 2024.
F.LEGAL CONSIDERATION:
MnDOT is seeking Municipal Consent due to the MnPASS lanes expansion.
ALTERNATIVE(S):
None
PRINCIPAL PARTIES EXPECTED AT MEETING:
None
ATTACHMENTS:
Description Type
Preliminary Design Drawing Backup Material
I-494 Corridor Vision
City of Richfield Council Work Session
Andrew Lutaya| Metro District Project Manager
City of Richfield Council Workshop
March 25, 2025
mndot.gov
I-494 Corridor Vision Development Process
3/24/2025 mndot.gov 2
Agenda
1.Development of the Corridor vision
2.Corridor vision implementation plan
3.Current Corridor vison delivery Schedule
4.City of Richfield regional framework evaluation criteria
Project Introduction
2001 2009
Rescoping Project
Looked at alternatives
within the FEIS footprint.
Recommended a “turbine
interchange” concept
2014
Interchange
Vision Layout
Development
Looked at project phasing
and Orange Line
improvements
Today
I-494:
Airport to
Hwy 169
Project
I-494/Hwy 62
Congestion Relief
Study
Identified MnPASS lanes
as key elements in
improvement flow of traffic
2017
2001 FEIS
I-494 Reconstruction
Corridor: I-394 to Minnesota River
Pre-2001
mndot.gov 33/24/2025
Corridor Vision – Public and Partner Engagement
mndot.gov 4
0%
10%
20%
30%
40%
Mobility (Travel
Time)
Traveler Safety Pavement
Conditions
Bridge Conditions Storm water
Drainage
Pedestrian and
Bicycle
Connectivity
(Across I-494)
Other
32%
26%
11%
8%6%
13%
4%
39%
21%
16%
12%
4%3%4%
Purpose & Need public engagement - “In your opinion, what is most
important for MnDOT to address when redesigning Interstate 494 from the
Airport to Hwy 169? (Choose up to 3)”
In-person Online
Primary Needs Secondary NeedsProject Purpose
Improve safety, mobility,
travel time reliability,
address asset
conditions, and promote transit mobility on I-494 between TH 5 and US 169.
3/24/2025
Corridor Vision – Public and Partner Engagement
mndot.gov 5
•Engagement
example – access
reconfiguration
Shows the percentage of individual comments that mentioned each concern
Could you support removing freeway access from Nicollet and 12th, and expanding access at Portland?
3/24/2025
Corridor Vision - Alternatives Selection Criteria
mndot.gov 6
Evaluation Criteria
1.Primary Transportation Need
2.Secondary Transportation Need
3.Additional Considerations
4.Social Economic, Environmental
(SEE) Considerations
3/24/2025
Criteria No Build GP MnPASS
Freeway LOS
Person Throughput
Travel Time Delay
Travel Time Reliability
Transit Advantage
Freight – Heavy vehicles
Freight – Medium/Small vehicles
Crash Reduction
Consistent with Regional Trans. Plans
Fiscal Considerations NA Base $13.2M
Aquatic Resources
Environmental Justice
Section 4(f)
Right of Way
Corridor Vision I-494 Mainline Alternative - Screening Criteria
7
*
*
*
*While both alternatives received desirable ranking, this alternative would be
considered the best performing for this criteria
I-494 Corridor Vision
3/24/2025 mndot.gov 8
Corridor Vision Defined
Defined Corridor Vision
3/24/2025 9
E-ZPass from Hwy 169 to 24th Ave
I-494/I-35W interchange
Access changes at Nicollet, Portland and 12th
77th St Underpass
mndot.gov
3/24/2025 10
I-494 Corridor Vison – Implementation Plan
82nd St interchange and grade raise on 35W
EZPASS westbound
(Hwy 100 to Hwy 169)
EZPASS westbound
(35W to Hwy 77*)
Nicollet, Portland, 12th Ave,pedestrian bridges
35W interchange flyover & EZPASS in westbound (35W to Hwy 100)
1
7
3
5
8
*Added capacity
begins at 24th Ave
with EZPASS
designation just
west of TH 77
2
EZPASS
eastbound
(Hwy 100 to Hwy 169)
6
4 Railroad bridgeEZPASS in eastbound (from 35W to Hwy 100)
EZPASS eastbound
(35W to Hwy 77)
9
project elements
mndot.gov
Project Scope
•Construct E-ZPass lanes from Th 100 to I-35W
•Reconstruct the I-35W/494 Interchange
•Reconstruct existing mainline lanes from Th 100 to I-35W
•Reconstruct Nicollet, Portland and 12th Ave bridges
•Construct a new pedestrian bridge east of Portland Ave
•Construct Trails and multi-model i.e. Bike & Ped and ADA improvements
I-494 Corridor Vision – Phase 1
3/24/2025 mndot.gov 11
Project Scope
•Construct E-ZPass lanes from Th 169 to Hwy 100 & I-35W to TH 77
•Reconstruct existing mainline lanes on I-494 and on I-35W
•Reconstruct Th 77 bridges over I-494
•Reconstruct 82nd St bridge over I-35W
•Reconstruct CPCK RR bridge over I-494
•Bridge Rehab of 24th Ave bridge over I-494
•Joint repair of the existing 84-inch trunkline from Lyndale Ave to 34th Ave.
•Multi-model i.e. Bike & Ped and ADA improvements
I-494 Corridor Vision – Phase 2
3/24/2025 mndot.gov 12
I-494 Corridor Vision
3/24/2025 mndot.gov 13
Corridor Vision Delivery Schedule
Corridor Vision delivery Schedule
•The I-494 Corridor vision was approved by FHWA in June 2022.
•1st Construction project was let in October 2022
o The anticipated construction completion of project 1 is Fall 2026.
•Notice To Proceed for Preliminary engineering for phase 2 was September 2024
•INFRA grant award for phase 2 announced in October 2024.
•Environmental document completion targeted Fall 2025
•2nd Construction letting targeted for Fall 2026.
o The anticipated construction completion of project 1 is Fall 2029.
3/24/2025 mndot.gov 14
Municipal Consent Process
•MN Statutes 161.162 to 161.167 – Municipal Consent (MC) applies to projects that,
o Alter access
o Increase or reduce highway traffic capacity
o Require acquisition of permanent rights-of-way
•Opportunity for municipalities to comment and approve of the project layout (MN Statute 161.164)
o Project layout shows construction features such as roadway reconstruction, sidewalks, trails, bridges, noisewalls, highway access points, etc.
o Right-of-way needs
o Include Good-faith cost estimate for all costs the LGU is expected to participate
•MN Statutes 160.93, Sub 3, exempts EZ-PASS projects from MC processes
o MnDOT for community partnership has voluntarily sought MC on EZ-PASS projects
3/25/2025 15
3/24/2025 mndot.gov 16
Corridor vision through the lens of the of Regional Project
Framework
City of Richfield Regional Framework Evaluation Criteria
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 17
City of Richfield Regional Framework Evaluation Criteria
Example of impacts
Map
-Equity
-Safety
-R/W impacts
-Air Quality impacts
3/24/2025 mndot.gov 18
3/24/2025 mndot.gov 19
Fills a Gap or Need
•Regional Mobility o Reduces hours/duration of congestion on the corridoroImproves travel time reliabilityoReduces vehicular crashes on the corridor o Expands the regional EZ-Pass system •Asset Preservation o Pavement – Reconstructs 6 miles of pavement o Bridges – Reconstructs 7 bridges, Rehabilitate 7 bridges o Storm sewer – Over 2 miles of storm sewer reconstructs, various rehabs
•Community connectivity – Improved Pedestrian access, trail gaps, trail lighting, reduce congestion or the corridor
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 20
Funding
•Two federal grants awarded to the project
o Phase 1 got INFRA grant - $60 millionoPhase 2 got INFRA grant - $138 million
•State funding
o Phase 1 - Corridors of commerce bonds - $215 millionoPhase 2 – Corridors of Commerce bonds - $114 millionoState Road Construction dollars – filled the funding gap
•Local Funds
o local funding for locally requested work – sidewalks, trails, lighting, storm sewer, utilities.
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 21
Local Congestion or Mobility improvements
•Local system congestion - Effects of mainline I-494 capacity increase
o Attracts vehicles from the local system to the highwayoForecasted reduction in local system crash rates o Freight mobility - Improved commercial vehicle access at reconstructed intersections
•Local system mobility
o Additional ped crossings and improvements in existing infrastructure including new bridge
crossings, new sidewalks and trails. o Vehicular operational improvements at reconstructed intersections (7 signal reconstructs)
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 22
Local Safety Benefits
•Pedestrian BenefitsoNew and Improved pedestrian crossings, o New street and trail lighting, o New bus sheltersoReduced noise pollution with proposed noisewalls
•Vehicular BenefitsoReduction in local system crash rates o Improved commercial vehicle access with reconstructed intersectionsoImproved sight lines at bridge crossings and intersections. o Supports the 76th Ave and American Blvd parallel routes system
•Improved drainage systems reduce risk of local flooding
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 23
Ownership and Major maintenance
•Various exemptions from current agency policies including the Cost Participation
Policy, Bridge Ownership and Maintenance policy have been granted for the project.
o Current Cost Participation Policy guidelines, local agencies do not take on ownership of regional
infrastructure.
Project Support
•Corridor received federal grant funding by support from State elected officials, Met
Council, Hennepin County, and the 5 cities along the corridor.
o The municipal consent process of phase II is targeted to conclude this summer.
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 24
Promotes Multi model Transportation
o The EZ-Pass system provides transit advantage compared to GP lanesoNew trail and sidewalks filled gaps in existing infrastructure. o Improved pedestrian facilities along the entire corridoroNew ADA pedestrian crossings along the entire corridor o Corridor vision accommodated the new metro transit D-line on Portland Ave plus the orange line
BRT on 35W. o New/reconstructed bus shelters on the 82nd St, Nicollet Ave, Portland Ave and 12th Ave.
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 25
Reduces Inequity
•New and improved community access in areas of low income
o New and/or Improved trail and sidewalk connections along frontage roads and across I-494. o Improved safety benefits with additional lighting and new ped ramps•Reduction in hours of congestion on the highway and local streets
o With mainline operations improvements from managed lanes •Highway noise mitigation with proposed noisewalls
•Potential air quality improvements with reduced corridor congestion
City of Richfield Regional Framework Evaluation Criteria
3/24/2025 mndot.gov 26
Property Impacts
•Phase I - Total takes/ R/W acquisitions along Portland Ave.
•Phase II - Temporary easements for construction
*Criteria Remaining to be studied for Phase 2
* Air Quality Analysis
* Benefit Cost Analysis
* Reduction in Green House Gas Emissions
City of Richfield Regional Framework Evaluation Criteria
Thank you again!
Andrew Lutaya
Andrew.Lutaya@state.mn.us
651-234-7563
3/24/2025 mndot.gov 27