09-30-1985 SpecialCITY OF RICHFIELD, MINNESOTA
SPECIAL CITY COUNCIL MEETING
SEPTEMBER 30, 1985
MEMBERS PRESENT: John Hamilton, Mayor; Howard Bunce;
Ivan Ludeman; Donald Priebe; and,
Michael Sandahl.
STAFF PRESENT: John Cartwright, City Manager;
Clayton LeFevere, City Attorney;
Thomas Ferber, City Clerk; Steven
Devich, Administrative Services
Director; Dennis Kraft, Community
• Development Director; William
Fillmore, Liquor Operations
Director; and, Jean Mitchell,
Finance Manager.
The meeting was called to order by Mayor Hamilton at 7:03 p.m.
PLEDGE OF ALLEGIANCE
Item #1 CON IDERA ION 0 REP L C AI LI E EMPL PEES FEDERAL
CREDIT UNION AND NACON PROPERTIES DEVELOPMENT PROPOSAL
FOR THE CEDAR AVENUE LIQUOR STORE SITE. C.L. 371
City Manager Cartwright reviewed Council Letter No. 371
regarding a proposal by Nacon Properties to develop the Cedar •
Avenue Liquor Store site with a free standing building-for the
Republic Airlines Employees Federal Credit Union and an
additional building for commercial use.
David Elling, Nacon Properties, reviewed the proposal which
would consist of a two story facility on the southern portion
of the site for the Republic Airlines Credit Union and a one
story retail/office building on the northern portion of the
site. Mr. Elling stated that the project would be financed with
private funds and that the developer is not seeking I. D. R. B.
mortgage financing from the city.
Roger Saddleman, Hammel, Green & Abrahamson, Architect for
the proposal, reviewed three different concepts for the siting
possibilities of the retail/office building in relation to the
proposed Credit Union building.
David Elling, Nacon Properties, indicated the total value of
the project would be $2.3 million.
City Manager Cartwright stated that it is anticipated that
200 vehicle trips per day would be generated by this project.
Special Council Meeting -2- September 30, 1985
Council Member Priebe asked what price the developer would
pay to the city far the land.
David Elling indicated that a price of $3.51 per square foot
had been proposed by the city staff. The total cost would be
approximately $45$,000. No agreement has been reached on the
sale price of the land.
Bob Hall, representing the Republic Airlines Employee Credit
Union, spoke in support of the development proposal.
Council Member Priebe asked if this developer had approached
the city on his own and if the city had been aggressively trying
to market this property.
City Manager Cartwright responded that the city council had
previously reviewed three proposals for the site and had
authorized negotiations with Lincoln Properties to develop the
site. Since that time, no further proposals had been
solicited. Nacon Properties had approached the city with it's
proposal.
Council Member Priebe asked if staff could give a comparison
of the financial and economic aspects of the Lincoln Companies
and Nacon Properties proposals.
City Manager Cartwright responded that Nacon proposal had
been presented to city staff earlier in the day; thus, there
has not been sufficient time to provide an anaylsis and
comparison.
Council members asked Chuck DeFresne of Lincoln Companies to
review his development proposal at this time. Mayor Hamilton
ruled that agenda item No. 3 would be taken out of order at this
time.
Item #3 PUBLI HEARING FOR ISSUANCE OF $2.g MILLION INDUSTRIAL
DEVELOPMENT REVENUE BONDS FOR AN OFFICE SERVICE CENTER
PROJECT ON THE CEDAR AVENUE LIQUOR STORE SITE TO BE
DEVELOPED BY LINCOLN COMPANIES. C.L. 373•
City Manager Cartwright reviewed Council Letter. No. 3?3
regarding the issuance of $2.g million Industrial Development.
Revenue Bonds for an office service center project on the Cedar
Avenue Liquor Store site to be developed by Lincoln Companies.
Chuck DuFreane, Lincoln Companies, reviewed his proposal to
develop an office showroom service center on the Cedar Avenue
site. He indicated the total value of the project would be $1 .8
million. He stated that he would purchase the land from the
city for approximaitely $2.60 per square foot, totaling
approximately $350,000.
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Special Council Meeting -3- September 30, 1985
Council Member Sandahl,asked how the Lincoln Companies and
Nacon Property proposals compare in their ability to spur
development north of 66th street.
Community Development Director Kraft responded that the
Lincoln Companies proposal would have a positive affect. He
stated that he had not had time to review the impact of the
Nacon Properties proposal.
Thomas Harms, H.R.A. Chairman, stated that the projects
should be evaluated by which one would provide the greatest
benefit and value to the city.
City Manager Cartwright stated that if the city did not
commit it's IRDB entitlement prior to October 31, 1985, the city
would turn back to the state its remaining IDB allotment .as
provided by state statutes. Next year, Richfield will have to
compete with other city's for an allotment from the entitlement
pool because Richfield, starting in 1986, will not receive an
allotment since the state has recognized only a few cities as
IDB entitlement cities.
City Attorney LeFevere reviewed the history of the plans for
development of the 66th Street and Cedar Avenue area.
The city council directed the staff to prepare an analysis
of the Lincoln Companies and Nacon Properties proposals and to
present a recommendation to the city council at the October 28,
1985, council meeting.
M/Bunce, S/Priebe to close the public hearing.
Motion carried 5-0.
M/Ludeman, S/Bunce to continue
Com an and Nacon Pro erties ro 0
Cedar Avenue Liquor tore site and
Industrial Develo went Revenue Bon
city council meet na.
consideration of t
als or develo men
the issuance of 2
s to the October Z
Motion carried 5-0.
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Stem #2 CON IDERATION OF CITY STAFF REPORT ON TH OPTIONS TO
SELL, LEASE, BUILD OR REHABILITATE ONE OR MORE OF THE
RICHFIELD MUNICIPAL LIQUOR STORES. C.L. 372.
City Manager Cartwright reviewed Council Letter No. 372
regarding the various options concerning the future of the
Richfield Municipal Liquor Stores.
Special Council Meeting -4- September 30, 1985
City Attorney LeFevere outlined the Golf Course bond
covenant provisions which places an obligation upon the profits
of the municipal liquor stores if the golf course revenues fall
short of meeting debt service on the golf course revenue bond
issue.
Discussion followed regarding the debt service for the Golf
Course bonds and the obligations placed upon the Special Revenue
Fund.
It was the consensus of the city council to have city staff
and the city attorney study the options available and report
back to the city council at a future meeting.
The meeting was adjourned a'
Date Approved: 10/14/85
T omas P. erber
City Clerk
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