05-16-1983 HRA
HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD, MINNESOTA
SPECIAL JOINT CITY COUNCIL MEETING
May 16, 1983
The Housing and Redevelopment Authority of the City of Richfield met in
special joint session with the Richfield City Council in the council chambers
of city hall on Monday, May 16, 1983 at 7:30 p.m.
Chairman Tom Harms called the meeting to order at 7:40 p.m.
Present: HRA Members Helmberger, Ludeman, Luettinger, Harms
Absent: Hassenstab (Arrived at 7:40 p.m.)
Also present for a joint session of the HRA and City Council were Council
Members Bunce, Kirsch and Priebe. Hamilton was absent.
1. Approval of Minutes of Regularly Scheduled Meeting of April 18, 1983
Motion by Harms, seconded by Ludeman to approve the minutes of the regular
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meeting of April 18, 1983, as presented.
All ayes - Carried. Absent - Hassenstab.
2. Opportunity for Citizens to Address the HRA
Chairman Harms inquired whether citizens were present who wished to address
the HRA. No one wished to speak.
3. Joint Discussion with City Council Rela
Site Studv
to Cedar Avenue Liquor Store
Executive Director Nollenberger introduced this item, addressing the ownership
of this site by the city's liquor operation and potential HRA involvement, particularly
with reference to any peripheral development which might occur around this site.
Mr. Nollenberger referred to the McComb report that had previously been submitted
to HRA and city council members and staff report regarding the potential redevel-
opment of the site.
Commissioner Hassenstab arrived at 7:40 p.m.
Dennis Kraft, Director of Community Development, presented a summary of the
McComb study which had applied standards and information to development possibilites,
market potential for various commercial, office, light industry, and housing uses
of the site. Mr. Kraft indicated that condominium offices, rental offices, and
Special Joint Meeting -2- May 16, 1983
multifamily residential development had been identified in the study as the most
likely potential uses in th.e site. Mr. Kraft also reviewed a matrix listing of
potential uses and their ratings based on the criteria used in the McComb study
for location, environmental compatibility, market demand and other factors. Mr.
Kraft also indicated that compatibility with the city's liquor operation had
been evaluated and it had been found that office and retail uses would be the
most compatible. He also noted that the existing zoning on this site and the
immediately surrounding area was appropr-late for office and residential uses.
At this point discussion was opened for questions of Mr. McComb and the
HRA staff.
Chairman Harms asked Mr. McComb about the interest rates used in the financial
analysis of the study, and Mr. McComb responded that while the rates used in the
study are slightly high compared to the current market, he believes they are a
realistic estimate for the near future.
Executive Director Nollenberger commented about the effect of noise
attenuation requirements on building a structure on this site. Mr. McComb
indicated that the cost estimates for noise attenuation had been provided by
Hammel, Green, Abrahamson Architects concerning what would be required to meet
the new Metropolitan Council standards.
Mr. Harms inquired whether Mr. McComb had been aware of the restaurant proposed
about the time the study was prepared, particularly with regard to restaurant
operations that might use a liquor license and those that might not. Mr. McComb
indicated that he was not, however, with regard to retail and restaurant
operations, he believed a negative effect would occur due to the proximity to
the airport and the resulting reduced market area to the east of this property.
Mrs. Helmberger inquired whether woodframe structures could be built up
Special Joint Meeting -3- May 16, 1983
four stories in height as had been referred to in the report. Dennis Kraft
indicated that regardless of the building code requirements, a four-story building
could create density problems relative to existing land uses. Council Member
Priebe indicated that an increase in the market value and the resulting property
taxes to the city would also be a consideration and asked what type of development
would generate the most tax revenue. Mr. McComb indicated he believed an office
condominium or rental project would generate the most tax revenue and Mr. Nollenberger
commented on the relationship of market value and assessed value and the computation
of taxes.
Mr. McComb commented regarding the location and noise problem on the site
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development. Mr. Nollenberger inquired whether it was fair to say that motel,
retail and restaurant establishments would not be logical to pursue further because
of these. Mr. McComb responded that this was correct.
Mr. McComb also commented on the limitations of the study, indicating that
there might be some types of development that could not be realistically anticipated
in the study and may or may not be successful on this site. Council Member Bunce
asked if the study was performed only for the property owned by the liquor operation
and not adjacent property to the north. Mr. Nollenberger indicated that this was
the case, and Mr. Bunce subsequently asked whether redevelopment possibilities
along Cedar Avenue should be explored, perhaps using tax increment financing or
other means. Mr. Nollenberger indicated that that type of evaluation could be
done and in fact, staff's study had originally started that way one to two years
ago. However, the results that the preliminary study did not generate significant
interest on the part of the council and HRA.
Mr. Priebe commented that the surrounding area is somewhat unusual regarding
the existing land uses and that redevelopment of the area could be a problem. Mr.
Harms commented on the increase in redevelopment costs that would occur because
of the requirement for soundproofing buildings.
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Mrs. Helmberger asked about the market for office buildings, particularly
with regard to this location and Mr. McComb responded that, while it's a good
location for office development, it's not a high-visibility "Class A" location.
Discussion commenced concerning a sgecific proposal for redevelopment of
the site that had been suggested to the city. Executive Director Nollenberger
indicated that the proponents are still at the exploratory stages of the devel-
opment; that no formal proposal has been received by the city.
Mr. Ralph Bruins, representing Jim Madden, potential developer, discussed
the proposal. He indicated that Mr. Madden presently operates the Diamond Lake
Lanes and the Stadium Bowl developments, as well as a number of recreational
centers in the Twin Cities area. He indicated that the proposed development is
similar to an operation owned by Mr. Madden in the vicinity of I-94 and I-694
near the Holiday Inn in Brooklyn Center which has 36 bowling lanes, and also
Hafner's Center in St. Paul, which is not owned by Mr. Madden.
Mr. Bruins indicated that the development could be done in a manner to fit
in with the surrounding neighborhood and that most of the patrons of the facility
would come from bowling league business. He further indicated that it was expected
the project would cost 4 to S million dollars, and consist of 48 bowl~.ng lanes.
Mr. Bruins thought a development of this size and its location relative to the
airport could attract national bowling leagues. Mr. Priebe asked whether they
planned to use the entire site, leaving no room for the city liquor store. Mr.
Bruins indicated that the entire site would be required because of the anticipated
parking needs. He also said the developer would likely request vacation of a part
of 67th Street to reduce traffic in the immediate area. Mr. Bruins also noted
that there could be room for a city liquor store if the first three properties
in the block were acquired by the city.
Special Joint Meeting -5- May 16, 1983
Mr. Bruins described the proposal as anticipating the construction of a
two-story building, with parking to be located under the part of the structure
housing the bowling lanes. The restaurant operation would also consist of two
stories, one for regular restaurant business, and one for banquet facilities.
Mr. Bruins indicated it was believed the facility could enhance the use of the
city's golf course because of the proximity of the banquet facilities to the
course.
Discussion occurred concerning the relation of the city's liquor license
ordinance requirement to a restaurant attached to a recreational business.
Council Member Bunce inquired whether legislation would be required to allow
such a liquor license. Mr. Nollenberger responded that an ordinance change
may be required, but not special legislation. Mr. Bruins stated that the
proposal was intended to include a 250 to 350 seat restaurant, plus the banquet
facilities, which would have additional seating.
At this time Executive Director Nollenberger requested direction from the
council and the HRA concerning:
a. The need to consider the relationship of a larger redevelopment
area to this site, particularly with regard to the likelihood
of requiring tax increment financing to redevelop a larger area.
b. ~ Regarding the specific development posed for this site, whether
the proposal dust heard should be pursued or whether other uses
should be explored for the site.
Council Member Kirsch asked if the Cedar Liquor Store location had been
identified as a priority in the council goals that had recently been developed.
Council Member Priebe indicated that he is more inclined to go ahead with the
present proposal rather than to delay the matter to consider redevelopment
Special Joint Meeting -6- May 16, 1983
north of 66th Street, because he is not optimistic about that redevelopment
occurring. Mr. Nollenberger indicated that the tax increment-financed redevel-
opment of a larger area would not necessarily have to delay the specific project
posed tonight.
Mr. Ludeman asked about the tax increment financing process and Mr.
Nollenberger indicated that while it is still available for redevelopment,
there are some more stringent requirements attached Co the process. He indicated
that specifics would have to be reviewed and reported back. Mr. Ludeman asked
whether the proposal hinges on tax increment financing. Mr. Nollenberger
responded that this depends upon the potential acquisition of adjacent properties
and the financing for their redevelopment.
Mr. Harms said he thought it was worthwhile to begin the process and work
with the developer and see what progress can be made. Mr. Nollenberger said
that the HRA and council should be serious about their intentions before investing
the staff time and effort required to make a detailed study of the process.
Mr. Luettinger said that he thought the present proposal was the best chance
for redevelopment of the site.
Mrs. Helmberger asked whether it would be possible to pick up adjacent
industrial areas for redevelopment.
Mr. Nollenberger reminded the H~A and council members that the ordinance
change regarding the liquor license also has an important impact on the proposed
project and that would need to be dealt with right away. Mr. Priebe indicated
that there may be other options for changing the ordinance and those should be
explored as well.
Mr. Larry Wozniczka, 6744 Wentworth, a resident, asked if tax increment
financing is really beneficial to the community and that perhaps development
without using tax increment financing should be considered first.
Special Joint Meeting -7- May 16, 1983
Mr. Bunce asked whether staff was asking for decisions to be made tonight
and Mr. Nollenberger responded that he was hearing direction to come back with
information to the council and HRA concerning time tables and the process for
redevelopment.
Mr. Ludeman also said that the liquor license ordinance amendment needs
to be dealt with soon. Mr. Luettinger inquired whether all possibilities
concerning the ordinance had been explored and Mr. Nollenberger responded that
additional work would be done.
The joint discussion of the council and HRA ended at 8:55 p.m.
Motion by Hassenstab, seconded by Bunce that the meeting adjourn.
All ayes - Carried. Absent - Hamilton.
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Date Approved : June 13, 1983 ,~ , q ,a ~ ~ ~;~ ~~ ~ ~~
Ivan Lud n President Pro Tem
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Ronald Rankin Ac ing City Clerk Karl Nollenberger City Manager
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