11-12-1985'~
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CITY OF RICHFIELD, MINNESOTA
REGULAR COUNCIL MEETING
NOVEMBER 12, 1985
MEMBERS PRESENT: Johri Hamilton, Mayor; Howard Bunce, Ivan
Ludeman; Donald Priebe; and, Michael
Sandahl.
STAFF PRESENT: John Cartwright, City Manager; Steven
Devich, Administrative Services
Director; Thomas Ferber, City Clerk;
Dennis Kraft, Community Services
Director; Thomas Morgan, Public Safety
Director; David Kennedy, Acting City
Attorney; and, Bruce Palmborg, Housing
and Redevelopment Coordinator.
The meeting was called to order by Mayor Hamilton at 7:04 p.m.
The presentation of colors was made by Cub Scout Troop Den 1,
Pack 262. Mayor Hamilton presented Certificates of Appreciation
to the Scout members present.
PLEDGE OF ALLEGIANCE
APPROVAL OF MINUTES
M/Bunce, S/Priebe to_a~ rp ove_the minutes of the Special
Stud Session Meetin of October 28 1985• and the re ular Ci
Council Meeting of ctober 28, 1985.
Motion carried 5-O.
Item #1 OPPOR UNITY FOR ITI NS TO ADDRESS TH CiT OU11iCIL
Maggi McDermott-Lindstrand, 7524 Bryant Avenue, stated that
she wanted to bring to the attention of the city council her
concerns regarding write-in votes at the recent city election:
i) better instructions are needed in the voting machines on how
to use the write-in ballot, 2) the strings holding the pencils
for write-ins were not long enough and, 3) the write-in slots
were not easy to operate and did not provide sufficient room for
long names. She stated that she has contacted city staff
regarding these matters. Mayor Hamilton asked city staff to
investigate these problems and advise the City Council of what
actions will be taken to improve the use of write-in voting.
Council Meeting Minutes -2- November 12, 1985
Item #2 PR_SE TA ON 0 P OCLAMATION R I G R CH ELD RESIDENTS
TO SUPPORT THE STOREFRONT/YOUTH ACTION SPECIAL
NOVEMBER, 1985,-FUND RAISING DRIVE.- C.L. 419 -
Mayor Hamilton presented a proclamation to Sue Bonoff, the
Storefront/Youth Action Inc., urging residents to support the
Storefront's fund raising campaign and designating the week of
November 11-17, 1985, as Storefront/Youth Action Week in
Richfield.
Sue Bonoff asked the city council to reconsider their
decision not to allow the Storefront/Youth Action inserts in the
utility bill mailings. She stated 12,000 inserts had been
printed for this purpose.
Mayor Hamilton stated that the City of Bloomington
periodically allows such inserts.
Council Member Bunce suggested that consideration of this
request be put on the agenda.' Councilman Bunce said he would
propose adding this request to the agenda when the council
considers approving the agenda.
Council Member Ludeman explained the request had been denied
because many-other worthy organizations may have similiar
requests. °-
Item#3 R SEN T O F 0 L M 0 T E ADV SO Y BOARD OF
HEALTH IN SUPPORT OF A PUBLIC AWARENESS CAMPAIGN ON THE
RISKS OF USING SMOKELESS TOBACCO. C.L. 420
Mayor Hamilton read and presented a proclamation in support
of public awareness campaign related to the risks of using
smokeless tobacco and proclaiming November 21, 1985, as D-Day in
the City of Richfield to initiate the campaign to Advisory Board
of Health chairperson Lia Ozols.
Jane Myre, 7033 Oliver Avenue, thanked the city council for
their support of this awareness campaign.
Joan Pelfrey, 7320 Grand Avenue, encouraged all members of
the audience and residents of Richfield to quit the use of
tobacco on D-Day, November 21, 1985.
Item #4 PRES NTATION OF P 0 LAMATION TO THE A ERI AN EGION
DESIGNATING NOVEMBER 17-23, 1985, AS AMERICAN EDUCATION
WEEK. C.L. 421.
Mayor Hamilton read and presented a proclamation to the
representatives of the Richfield American Legion Post 435 in
support of American Education Week and proclaiming the week of
November 1'T-23, 1985, as American Education Week.
Council Meeting Minutes -3- November 12, 1985
Item #5 A PROV L 0 GE DA
Council Member Ludeman requested that Item #8 and #9 on the
agenda be considered. in reverse order so that Item #9 be
considered prior to Item #S.
Council Member Bunce requested that an item be added to the
agenda for consideration of the Storefront/Youth Action Inc.
request to allow inserts in the utility billing mailing.
Mayor Hamilton stated- that the Storefront/Youth Action item
would be Item #21A on the agenda.
City Manager Cartwright requested that Item F of the Consent
Calendar be placed on the Council Agenda as Item #21 B.
M/Ludeman, S/Bunce to approve the agenda as amended.
Motion carried 5-0.
Item #6 CONSENT CALENDAR
A. ESTIMATE N0. 2 AND FINAL PAYMENT TO ORVEDAHL
CONSTRUCTION FOR THE SEWER DRAINAGE PROJECT AT 69TH AND
LOGAN AVENUE - $23,684.
B. ESTIMATE N0. 22 AND FINAL PAYMENT WATER PRODUCTS FOR
500 WATER METERS DELIVERED - $21,000.00.
C. ESTIMATE NO. 2, RICHARD KNUTSON, INC. FOR 76TH AND
WASHBURN STORM DRAIN IMPROVEMENTS - $214,726.11.
D. ESTIMATE N0. 2 WATSON CONSTRUCTION, SIDEWALK AND
CROSSWALK REPAIR - $20,041.52.
E. CONSIDERATION OF COMMERCIAL KENNEL LICENSE FOR SUDS &
SCISSORS, JEANNE ALLAN, 6324 PILLSBURY AVENUE.
F. SETTING A HEARING DATE OF NOVEMBER 25, 1985, ON THE
CHANGE IN OWNERSHIP OF THE LIQUOR LICENSES FOR THE
GROUND RESTAURANT C.L. 422. (Removed from the consent
calendar and placed on, the agenda as Item #21 B) {
G. CONSIDERATION OF PURCHASE IN EXCESS OF $5,000 FOR
FERTILIZER FOR GOLF COURSE C.L. 423•
H. CONSIDERATION OF REQUEST FOR ILLUMINATED SIGN FOR
H & R BLOCK LOCATED AT 6507 NICOLLET AVENUE C.L. 424.
M/Ludeman, S/Priebe to a prove the consent calendar as
amended.
Motion carried 5-0.
Council Meeting Minutes -4- November 12, 1985
Item #7 CONSIDERATION OF VARI NCE REQUEST AT LUND'S
SUPERMARKET, 6228 PENN AVENUE, TO PERMIT THE
CONSTRUCTION OF A WALGREEN'S DRUGSTORE ON THE EAST SIDE
OF THE EXISTING SUPERMARKET (REQUEST FOR CONTINUANCE
UNTIL NOVEMBER 25, 1985)• C•L• 425 - ~-
City Manager Cartwright reviewed Council Letter No. 425
regarding the continuation of the November 12th public hearing
to November 25, 1985, on the variance request for Walgreen's
addition to Lund's Supermarket at 6228 Penn Avenue. The City
Manager indicated that staff had discussed this matter with
representatives of Lund's and they have agreed to continue the
hearing to November 25, 1985.
Council Member Ludeman indicated that a large number of
people had signed a petition in opposition to this variance and
he wished that they be sent a notice of the change and the date
of the hearing.
Mayor Hamilton announced that this item would be carried
over the the November 25, 1985 council meeting. There were no
objections to the postponement.
Item #9 RECONSIDERATION OF AN ORDINANCE TO REZONE THE SITE OF
THE FORMER CLOVERLEAF MOTEL AT THE NORTHWEST QUADRANT
OF i35W AND I494 INTERCHANGE FROM C-2 GENERAL
COMMERCIAL TO PC-2 PLANNED GENERAL COMMERCIAL FOR THE
PROPOSED CDR DEVELOPMENT. C.L. 439.
City Manager Cartwright reviewed Council Letter No. 439
regarding a request by several council members for
reconsideration of the rezoning of property from C-2 General
Commercial to PC-2 Planned General Commercial of the CDR
Development at 494 & 35W. The City Manager indicated that for
this matter to be reconsidered a council member from the
prevailing side must make the motion to reconsider. If there is
a second to the motion, it takes a majority vote (3 votes) to
pass the motion.
M/Sandahl, S/Ludeman to reconsider the rezonin the ro
C-2 General Commercia to PC-2 Tanned General Commerc
r the CDR Development a
Mayor Hamilton at this point opened the floor to
discussion.
* NOTE:-The city council approved the agenda format with
item #9 being heard before item #8.
Council Meeting Minutes -5- November 12, 1985
Arijs Pakalns, BRW Consultant, reviewed the ILN Study and
i
ng
Analysis done by his firm. Mr. Pakalns stated that resolv
the traffic circulation issues was- the key to improving the ILN
area. He then reviewed the recommendation for the 77th Street
business arterial which would serve the commmercial district and
separate it from the residential district. .He stated that the
financial alternatives explored led to the conclusion that the
tax increment financing should be the major funding source for
the public improvements proposed in the ILN. Mr. Pakalns
reviewed the steps in implementing the ILN tax increment _.
financing district plan.
Craig Newhouse, President of CDR, explained the history of
the CDR Company and their experience as developers. He stated
that his firm was very pleased to have the opportunity to
develop the old Cloverleaf site and felt that their proposal
was the highest and best use of this site.
Ron Erickson, Koronsky, Krank & Erickson Architects,
- reviewed the site plans, topography, and the buildings proposed
for the site. He stated that the buildings and the parking ramp
were designed to fit into the topography of the site and to
minimize the impact on the residential area. while maximizing -
their impact and visability from the 35W & 494 freeways,
thereby attracting quality tenants for this development.
Mr. Erickson reviewed the shadow effects and shadow studies
that have been done for the 26 story office building. He
indicated that-the proposed CDR building tower-would be .-M-
approximately the same height as the NFC Tower located at Xerxes
and 494.
Ernest Lindstrom, 7406 Fremont Avenue, asked that the
council reconsider their action of October 28, 1985, in which
they passed second reading of the rezoning ordinance for the CDR
project. He stated that the zoning ordinance is meant to
protect the property owners and that this project is contrary to
the welfare of the people. He also stated that he felt the
council acted arbritarily and illegally because: no preliminary
plat had been filed; that the variance would allow 2.6 times
more density than allowed by_the zoning ordinance; that the
notice to property owners within 350 feet of the project was
inadequate; and, that the conclusions in the staff report
support denial of the rezoning. Mr. Lindstrom asked that the
council rescind their action and then involve the neighborhood
to come up with a compatible plan that the neighbors could
agree to.
Connie Hoverson, Planning Commission Chairperson, reviewed
the Planning Comm~.ssion actions regarding the ILN plan including
the rezoning and transportation plan.
Getrude Ulrich, 7601 Aldrich, reviewed the ILN task force
recommendations.
Council Meeting Minutes -6- November 12, 1985
.Larry Wozniczka, 6744 Wentworth, stated his concerns
regarding the rezoning and redevelopment plan: (1) the total
impact of the traffic west and north of the project had not been
adequately addressed: (2) the financial package proposed was not
sufficient; (3) the plan is nvt consistent with the fact that
residents had paid assessments for streets and now the
developers in the ILN would not have to pay similiar asessments;
(4) only one alternative design of traffic circulation had been
investigated; (5) 18 million dollars is an unreasonable figure
for the public improvements; and, (6) Richfield needs to benefit
from this development prior to the time the bonds are paid off.
Kevin Rice, 7644 Blaisdell, stated he did not recall being
notified that 77th Street would be extended from Lyndale to
Nicollet. He requested that in the future he be notified and
informed of any actions regarding the ILN area.
Bob Gunderson of the Chamber of
revitalization of the economic base
the goals that the Visions Conferen~
area. He stated that the nature of
that CDR was needed as an anchor to
development to the ILN.
Commerce stated that
of Richfield had been one of
~e had identified for this
Richfield was changing and
attract high quality
Diane Olson, 7532 Fremont, stated that she had written to
the~Metropolitan Council requesting that this project be
reviewed as having metropolitan significance. She also stated.
she had cvr~tacted the Nine Mile Creek Watershed because of the
significance of this project to the watershed.
Ralph Manual, 7440 Fremont, stated that he felt this
project would be detrimental to the community and asked that
more input by residents be allowed.
Mrs. Rothe, 7644 Aldrich, stated that she had lived at this
location for 40 years and was opposed to being displaced.
Ken Meter, 7415 Humboldt Avenue, stated he had moved to
Richfield because it was a quiet place away from downtown
and now this project would be disturbing his quality of life.
Vern Knutson, 6509 5th Avenue, said that he could not see
any tax advantages to the residents of Richfield in approving
this tax increment district.
Joe McBrayer, 7638 Bryant Avenue, stated his concern about
traffic issues and asked that the city council reconsider their
decision.
Jan Knoteck of Minneapolis stated she was the owner of the
building at 7628 Lyndale Avenue which the plan calls for to be
removed for a parking lot. She stated that this was the most
desirable building on the block; that she wished to expand it,
and that she was not in favor of any plan to remove her building.
Council Meeting Minutes -7- November 12, 1985
Maggie McDermott Lindstrom, 7524 Bryant Avenue, stated that
she felt that not everyone at this meeting was speaking for the
whole neighborhood. She stated that sufficient notices and
newspaper articles had appeared regarding this project and that
everyone should be aware that it was being developed. She
stated that it was appropriate to have intense development on
the CDR site and that failure to allow such development at this
time would be a decision that Richfield would regret in the
future. She stated that the traffic concerns of the residents
taken into account by development of the transport-
had been
.
tion plan routing the business traffic to 77th Street and
reducing traffic on 76th Street. She also stated that
developments like the CDR project will be beneficial to small
businesses on Lyndale Avenue.
Marvin Kaiser, 7608 Bryant Avenue, spoke in support of
reconsideration of the rezoning.
Gertrude Ulrich, 7601 Aldrich Avenue, stated that the
proposed traffic circulation plan would allow the residents
south of 76th Street to rejoin the rest of Richfield. She
stated that the fact the Lyons property had not previously been
developed was an accident and that this site was desirable for
an intense use such as the CDR development.
Thomas Harms, HRA Chairman, explained the role of the HRA in
the ILN process. He stated that the city and HRA involvement_
was an attempt to insure that citizen input would be encouraged
in regard to the development of this area. He indicated that
through developers agreements the City and HRA could control .the
development process. Mr. Harms stated that-the CDR project and
the redevelopment district would be beneficial for the city.
City Manager Cartwright stated that he had contacted the
Building/Zoning Department of the City of San Antonio, Texas
regarding CDR developments in that city and that the San Antonio
official had highly recommended CDR as a developer.
City Manager Cartwright summarized the reasons for his
recommendation for the use of tax increment financing and the
rezoning of the CDR property. He reported on the many news
articles that had been published during the past year.
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Council Meeting Minutes -8- November 12, 1985
Council Member Ludeman stated his concerns regarding the
rezoning process and notices of the second reading of the
rezoning ordinance. Council Member Ludeman stated opposition
to tax increment financing because he believes that there is .a
better mix that could be used to finance the public improvements
in the ILN. He stated he objects to the transportation plan
which called for 77th Street to continue from Harriet Avenue
east to Cedar Avenue; to the height of the proposed CDR
building; and, that he did not support a separate agreement with
CDR which may give them first right of refusal to develop the
area between Emerson Avenue and Lyndale Avenue. Council Member
Ludeman informed the council of a $20 million development
proposal by a local businessman for the ILN area. He also
indicated that the widening of the Lyndale Avenue bridge must be
coordinated with the City of Bloomington.
City Manager Cartwright stated that the proposed agreement
mentioned by Mr. Ludeman was an agreement stating the city would
not actively seek development in the ILN area: However, if
developers approached the city, each proposal would still be
considered. The agreement with CDR would give CDR a 60 day
notice of a proposed development in the area but not a first
right of refusal to develope in the ILN.
Council Member Ludeman asked why the proposed agreement was
not made with-other businesses in the area and noted that the
agreement extended to the end of 1987 which would correspond to
CDR's plans for opening their development.
City Manager Cartwright indicated that this agreement was
part of the contract negotiations with the developer and really
did not give CDR an exclusive right to development in the area,
but rather took into consideration their considerable .interest
in the area.
Council Member Sandahl asked to have the legal questions
which were raised by Mr. Lindstrom reviewed by the City
Attorney.
David Kennedy, Acting City Attorney, stated that Mr.
Lindstrom's objections to the rezoning were the usual legal
objections raised to any rezoning.
Mayor Hamilton stated that he supported the CDR Project.
Council Member Ludeman asked if a notice of the ordinance
change had been given to residents.
Community Development Director Kraft reviewed the procedure
by which notice had been given to property owners within 350
feet of the development for the Planning Commission hearing.
Mayor Hamilton requested an expansion of the 350 foot area
for future notification of such ordinance changes.
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Council Meeting Minutes -9-
November 12, 1985
Council Member Priebe noted that a reconsideration of this
item should be to only receive testimony regarding any new
information and that no new information had been given. Council
Member Priebe noted that a large amount of publicity had been
given to this project through the Minneapolis Star & Tribune and
Sun Newspapers and that he supported the rezoning of this
property for CDR.
Council Member 5andahl stated he supported this development
and also felt that notice had been. given to as many people as
possible.
Council Member Bunce inquired about the $20 million
development mentioned by Council Member Ludeman.
Mayor Hamilton stated that this $20 million proposal .was not
for the Lyons property and further discussion of this proposal
would occur later in the meeting.
A poll of votes was asked for on the motion for
reconsideration by Council Member Ludeman.
Council Member Priebe noted that a no vote would be against
reconsideration of the rezoning.
Poll of votes was as followed:
Hamilton NO
Ludeman YES
Bunce NO
Priebe NO
Sandahl N0~-
Motion failed 1-4. Mayor Hamilton announced that the motion
to reconsider did not pass.
Item #8 PUBL C E RI G ND ONSIDE ATION OF A RE OLUTIO
APPROVING: A REDEVELOPMENT PLAN AND A TAX INCREMENT
FINANCING PLAN FOR THE INTERSTATE LYNDALE NICOLLET
REDEVELOPMENT PROJECT; ESTABLISHING A REDEVELOPMENT
PROJECT; AND, ESTABLISHING A REDEVELOPMENT TAX
INCREMENT FINANCING DISTRICT. C.L. 426
City Manager Cartwright reviewed Council Letter No._ 426..
regarding: a public hearing and consideration of a Resolution
approving a Redevelopment Plan and Tax Increment Financing Plan;
establishing a redevelopment project; and, establishing a
redevelopment tax increment financing district for the
Interstate Lyndale Nicollet Redevelopment Project.
Council Meeting Minutes -10- November 12, 1985
Acting~City Attorney David Kennedy reviewed how the HRA and
city council actions are related in regard to this matter.
Larry Wozniczka, 6744 Wentworth Avenue, stated his concerns
regarding the high cost of the public street improvements and
the risk of devaluation on the properties. He reviewed an
article about real estate and the risk that this project may
have for the citizens of Richfield.
Thomas Harms, HRA Chairman, indicated the city has staged
its obligations and conditioned them upon GDR developing their
project and agreeing to an established assessed valuation. He
stated that tax increment financing was the only viable
financing mechanism for the public improvements in the ILN.
Council Member Priebe stated support for tax increment
financing for this project and indicated adequate safeguards are
contained in the developers agreement. He also stated that tax
increment financing is not as desirable as previously because of
the fiscal disparities act. Council Member Priebe indicated
there was one alternative that could also be considered which
would be a referendum for the sale of General Obligation Bonds.
However, this would require the taxpayers of Richfield to back
the bond issue.
Council Member Ludeman gave an explanation of the effect of
tax increment financing on the property taxes for the homeowners
of Richfield.
. Council Member Bunce stated that tax increment financing was
needed to revitalize the ILN area.
Acting City Attorney David Kennedy reviewed the findings
regarding the redevelopment project and redevelopment tax
increment financing district which are contained in the proposed
resolution.
Council Member Ludeman questioned the exclusion of the
houses north of 77th Street, which are proposed to be acquired
for the new business arterial street, from the tax increment
financing district.
Acting City Attorney David Kennedy stated that these .houses
would be removed from the tax rolls at the time they were
acquired and there would be no advantage of having them in the
tax increment financing district.
M/Priebe, S/Bunce to close the public hearin .
Motion carried 5-0 .
Council Meeting Minutes -11- November 12, 1985
M/Sandahl, S/Priebe that the following resolution be
adopted; that it be spread in the resolution book and that it~be
made part of these minutes:
RESOLUTION N0. 7101
RESOLUTION APPROVING: A REDEVELOPMENT PLAN AND TAX INCREMENT
FINANCING PLAN FOR THE INTERSTATE LYNDALE NICOLLET
REDEVELOPMENT PROJECT; ESTABLISHING A REDEVELOPMENT PROJECT;
AND, ESTABLISHING A REDEVELOPMENT TAX INCREMENT FINANCING
DISTRICT
Council Member Ludeman asked for a poll of votes. The poll
was as follows:
Hamilton YES
Ludeman NO
Bunce YES
Priebe YES
Sandahl YES
Motion carried 4-1.(Ludeman opposed) This resolution
appears as Resolution No. 7101 in Resolution Book No. 53•
Item #10 SETTING A PUBLIC HEARING DATE TO RECEIVE COMMENTS f1N-
THE DRAFT ENVIRONMENTAL ASSESSMENT WORKSHEET FOR THE
CDR INVESTMENTS/MINNESOTA INC. PROJECT IN THE ILN
REDEVELOPMENT PROJECT AREA. C.L. 427 ~~ ~ ~~--
City Manager Cartwright reviewed Council Letter No. 427
regarding the presentation of a draft environmental assessment
worksheet (EAW) for the CDR Investments/Minnesota Inc. Project.
The resolution sets December 9, 1985 as the date for the public
hearing.
Council Member Priebe requested that copies of the EAW be
sent to Mr. Lindstrom.
M/Bunce, S/Priebe
that it be spread in t
part of here minutes:
RESOLUTION N0. 7102
RESOLUTION SETTING PUBLIC HEARING DATE TO RECEIVE COMMENTS
ON ENVIRONMENTAL ASSESSMENT WORKSHEET PREPARED FOR THE CDR
INVESTMENTS/MINNESOTA INC. PROJECT
that the following resolution be adopted
he resolution-book and that it be made
Motion carried S-O.This resolution appears as Resolution
No. 7102 in Resolution Book No. 53•
Council Meeting Minutes -12- November 12, 1985
Item #11 O SI ERAT ON OF A DEVE OPER'S AGREE ENT BET E TH
CDR INVESTMENT/MINNESOTA, HRA AND THE CITY OF
RICHFIELD. C.L. 428
Thomas Harms, Chairman of the HRA stated that at this time
the HRA would be considering several items concurrently with
the City Council (10:30 p.m.).
City Manager Cartwright reviewed the major points of the
agreement proposed for private development of the ILN Project
area with the HRA, City of Richfield, and CDR investments,
Minnesota.
Thomas Harms, Chairman of HRA, noted that in section 12-1 of
the agreement the HRA should be included.
Acting City Attorney Kennedy noted that this would be
changed.
Council Member Sandahl noted that the council had been told
this project would cost $70 million and questioned why the
agreement listed $63 million as the estimated market valuation.
Acting City Attorney Kennedy explained that the $70 million
was the cost of building the project and that for tax purposes
the developers were guaranteing a minimum market value at
$63 million.
Council Member Priebe questioned the reduction in the market
value from $70 million to $63 million stating that this would be
putting the city at a higher risk and he advocated using the
higher value.
Council Member Ludeman stated. that the county assessor must
be the one that determines the estimatd market value (EMV).
HRA Chairman Harms stated that if the project is given a
higher value, the cite would benefit. This document only sets
the minimum value.
Council .Member Ludeman stated that the tax increment
financing plan calls for an annual appreciation of 3~.
Council Member Priebe noted that this assumption of 3~
appreciation was a estimate on the part of the staff and was not
guaranteed.
City Manager Cartwright noted that past performanmee of the
county assessor indicates that the assessor when establishing ,~
EMV for property in Richfield is approximately 92~ of its value
based upon sales analysis.
Council Meeting Minutes -13- November 12, 1985
Council Member Bunce asked that CDR agree to donate land to
the city for the streets rather than the city purchasing it and
also ask the CDR guarantee buffering.
Ron Erickson, Korsunsky-Krank-Erickson Arch., Inc. stated
that if CDR develops the land to the north of their proposed
projects, they would agree to provide a 40 foot buffer from the
existing. street right of way along the west side of 77th Street
and the south side of 76th Street in order to save the beautiful
stand of oak trees.
Mr. Erickson noted that CDR does not own the land needed for
street right of way at this time and they could not agree to
donating it.
M/Sandahl, S/Priebe that the followin resolution be
adopted; that it be spread in t e resolution book and that it be
made part of these minu es
RESOLUTION N0. 7103
RESOLUTION APPROVING CONTRACT FOR PRIVATE DEVELOPMENT WITH
CDR INVESTMENTS/MINNESOTA
_ Motion carried 4-1. (Ludeman opposed} This resolution
appears as Resolution No. 7095 in Resolution Book No. 53..--a-
Item #12 NSID RA IO OF A AGR EMENT RELA I G T DEV L PME T
PROPOSALS WITH CDR INVESTMENTS/MINNESOTA. C.L. 429
City Manager Cartwright reviewed Council Letter No. 429 and
HRA Letter No. 61 regarding a resolution relating to development
proposals in the ILN Project area. Mayor Hamilton indicated he
had looked at drawings of a proposal along 77 1/2 Street and
asked for assurance that any and all proposals will be
considered. City Manager Cartwright indicated that this would
be the case.
Discussion followed regarding the agreement and any
limitations it would place on the city's ability to consider all
proposals for the ILN area.
Vern Luettinger voiced support for giving preference to
local businesses in developing property in the ILN.
Jim Miller, Twin City-Tire, stated that he did not
believe CDR needs this agreement. He felt that local businesses
should be given first right to development in that area.
Council Meeting Minutes -14- November 12, 1985
Tom Harms, HRA Chairman, said the agreement is beneficial
to the city by enabling a review of proposals from local
businesses while giving a 60 day notice to CDR so that they may
also make a proposal which would- meet development and investment
criteria.
Mayor Hamilton-suggested notice also be given to local
businesses if CDR or anyone else is proposing a development.
Council Member Priebe noted the council is considering
redevelopment because current businesses have not done a good
job of maintaining their businesses.
Council Member Sandahl stated that Mr. Miller and Mr.
Feldman have invested a great deal of money and have improved
their businesses. He stated that this agreement would allow
businesses to be informed and would allow local businesses to
make proposals.
Council Member Ludeman asked if the CDR representatives were _
aware that the development and investment criteria would apply
only to CDR.
Lloyd Keple, Attorney for CDR, stated that he is aware of
this criteria applying only to CDR and has no problem with this
not applying to third parties.
Peter Beck, an Attorney representing Terry Feldman, stated
that he is'riot opposed to the CDR development, the tax increment
financing district, or developing the ILN area. He stated Mr.
Feldman has a proposal for the area which would fit in the
redevelopment plan. He stated this proposed agreement with CDR
was not consistent with the ILN plan and put CDR on the inside
track making it more difficult for other developers to develop
in this area.
M/Bunce, S/Ludeman to reject the proposed agreement because
it does not include all he businesses.
Poll of votes Nay: Sandahl, Priebe, Hamilton; Aye: Ludeman,
Bunce. Motion failed 2-3.
M/Priebe, S/Sandahl that the following resolution be
adopted; that it be spread in the resolution book and-that it b~
made part of these minutes:
RESOLUTION N0. 7104
RESOLUTION APPROVING AGREEMENT RELATING TO DEVELOPMENT
PROPOSALS WITH CDR INVESTMENT/MINNESOTA
Motion carried 3-2. (Bunce, Ludeman opposed) This
reso3ut on appears as Resolution No. 7095 in Resolution Book
No. 53.
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Council Meeting Minutes -15-
M/Priebe, S/Sandahl to also establish a
ide local businesses with the same 0 d
November 12, 1985
olicy that would
notice as
provlaea for LllH reaaraina anv proposal in trie ILN area.
Motion carried 5-0.
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Item #13 0 SIDE A A VELOP 'S AGREEMEN BETW N
HAMPTON INN AND THE CITY OF RICHFIELD. C.L. 430
City Manager Car;twright reviewed Council Letter No. 430 and
HRA Letter No. 63 regarding a status report on a proposed
developers agreement with Richfield Hampton Inn.
Tom LaSalle, Realty Development Services, representing the
developers of a Hampton Inn franchise, stated that he had only
been given a three week notice of the necessity for a guaranteed
minimum estimated market value being part of the developer's
agreement and that this had created problems for financing the
project. Mr. LaSalle reviewed comparison in property taxes with
similar motels and stated that he felt the staff and the
developer were at an impasse and asked not to be required to
sign an agreement for a minimum estimated market value.
proposal. The .developers had originally said they would build a
five million dollar project on the two plus acre site.
City Manager Cartwright stated that the staff has been
negotiating with the developer and that the important point is
that $2 million dollars per acre valuation that is part of the
ILN moratorium ordinance will not be met by the current
HRA Chairman Harms suggested that this item be tabled and
discussed at a future meeting.
Mayor Hamilton stated that Mr. LaSalle should resume
negotiations with the city staff and this item would be
considered at a future meeting.
Item X14 CONS DERATION F A RE OLUTION S TTING THE DATE OF
HEARING. FOR IDR BOND SALE, HAMPTON INN PROJECT.
C.L. 431
City Manager Cartwright reviewed Council Letter No. 431
regarding a resolution setting a public hearing (December 9,
1985) on a proposed IDR bond sale for the Hampton Inn project
under the Minnesota Municipal Industrial Development Act.
Council Meeting Minutes -16- November 12, 1985
M/Ludeman, S/Sandahl that the following resolution be
adopted; that it be spread in the resolution book and-that it be
e minutes:
RESOLUTION N0. 7105
RESOLUTION CALLING A PUBLIC HEARING ON A PROPOSED PROJECT
UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
Motion carried 5-O.This resolution appears as Resolution
No. 7105 in eso ution Hook No. 53.
Item #15 CON iDERAT20 OF A RESO UT ON PROVIDING F R T E
ISSUANCE AND SALE OF $18,675,000 GENERAL OBLIGATION
TEMPORARY REDEVELOPMENT BONDS, SERIES 1985. C.L. 432
City Manager- Cartwright reviewed Council Letter No. 432 and
433 regarding authorizing the issuance of sale of bonds for the
ILN and authorizing the execution of a tax increment agreement
between the HRA and the City of Richfield.
Wayne Burggraaff, Evensen-Dodge, reviewed the bond issue
provisions.
Council Member Ludeman asked why the Lyndale Avenue bridge
was included in the proposed projects to be financed by this
bond.
City Manager Cartwright indicated that the city is retaining
the option to finance the bridge through this bond sale but
would seek alternatives using FAUS and MSA Funding for the
Lyndale Avenue bridge.
Council Member Priebe asked what the status of the TIF
Temporary Bond Issue would be if tax increment is outlawed by
Congress.
Wayne Burggraaff of Evensen-Dodge, responded that no current
Congressional proposal would prohibit this type of refunding
bond to be reissued 3 years from now.
Larry Wozniczka, 6744 Wentworth, asked why there would be
two bond issues which would give the bond counsel two
commissions.
Tom Harms, HRA Chairman, stated that he had questioned the
same thing himself, but found that it was beneficial to the city
to issue the temporary bonds with a one year call feature at
this time. If the CDR project is not undertaken, the City and
HRA will be able to recall the bonds and avoid a cost to the
City.
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Council Meeting Minutes -17- November 12 , 1985-
M./Sandahl, S/Bunce that the following resolution be adopted
that it be spread in the resolution book and that it be made
part of these minutes:
RESOLUTION N0. 7106
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$18,675,000 GENERAL OBLIGATION TEMPORARY REDEVELOPMENT
Motion carried 4-1. (Ludeman opposed) This resolution
appears as Resolut on No. 7106 in Resolution Book No. 53.
M/Bunce, S/Sandahl to a rove the a reement authorizin the
or and Cit Mana er to enter nto a tax increment a reement.
h Housing & Redevelopment Authority of ichfield.
Motion carried 5-O.
Item #17 CONSIDERATION OF A TRANSITORY ORDINANC PROVIDING FOR
THE FUNDING OF CERTAIN CAPITAL IMPROVEMENTS. SECOND
READING. C.L. 434
City Manager Cartwright reviewed Council Letter No. 434
regarding a transitory ordinance providing for the funding of
certain capital improvements.
M/Sandahl, S/Ludeman that this constitute a Second Reading
of Bill No. 1985-30, that it be published in the official
newspaper_and_that it be made part of these minutes.
Motion carried 5-0.
Item #18 CgNSID RATION OF AN ORDINANCE E TABL SHIN A W
BUSINESS LICENSE CATEGORY FOR VIDEO GAME DEVICES AND
PROVIDING FOR LICENSING THE PREMISES. SECOND READING.
C.L. 435
City Manager Cartwright reviewed Council Letter No. 435
regarding second reading of an ordinance establishing a new
license category known as video game devices and a resolution
setting rates for same devices.
M/Sandahl, S/Ludeman that this constitute a Second Reading
of Bill 1985-31, that it be ublished in the official news a er
and that i be made part of these minutes.
Motion carried 5-0.
Council Meeting Minutes -18- November 12, 1985
M/Sandahl, S/Ludeman that the foliowin resolution be
ad_opted,• that it be spread in t e resolution book and hat it be
made part of these minutes:
RESOLUTION N0. 7107
RESOLUTION AMENDING RESOLUTION NO. 6957
Motion carried 5-0 This resolution appears as Resolution
No. 7107 in Resolution Book No. 53•
Item #19 N ON F D ELOP PR POSAL OR CEDAR AV NU
LIQUOR STORE SITE. C.L. 436
Mayor John Hamilton stated that he had spoken with the
developers regarding a presentation for the Cedar Avenue liquor
store site and they had agreed to make their presentation at the
November 25, 1985, council meeting because of the lateness of
the. hour.
Item #20 CO ID RAT 0 R 0 ION PROV N F R ADJU E S
TO EMPLOYEE GROUP INSURANCE COVERAGES AND PREMIUMS
(TERM LIFE INSURANCE, DENTAL INSURANCE, HEALTH
INSURANCE, AND SHORT/LONG TERM DISABILITY INSURANCE).
C.L. 437
City Manager Cartwright reviewed Council Letter No. 437
regarding a resolution providing for adjustments to employee
insurance coverages and premiums.
M/Sandahl, S/Ludeman that the
adopted; that it be spree in e
made part of these m nutes:
RESOLUTION
RESOLUTION DESIGNATING CITY'S
TERM LS FE AND DENTAL INSURANCI
AND MANAGEMENT EMPLOYEES
followin resolution be
resolu on boo an tat it be
N0. 7108
CONTRIBUTION TOWARD HEALTH,
PREMIUM FOR GENERAL SERVICES
Motion carried 5-0. This resolution appears as Resolution
No. 7108 in Resolu ion Book No. 53.
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Council Meeting Minutes -~9- ,November 12, 1885
Item X21 CONSIDERATION OF A RESOLUTION. PROVIDING FOR THE
ISSUANCE AND SALE OF $6,225,000 GENERAL OBLIGATION
REFUNDING BONDS OF 1986. C.L. 438
Wayne Burggraaff, Evensen-Dodge, reviewed the issuance and
sale of General Obligation Refunding Bonds of 1986. -y
Council discussion followed regarding the advanced refunding
issues and the relationship to interest rates on the timing of
the bond issue.
MlSandahl, S/Ludeman that the following resolution be
adooted: that it be sAread in the resolution book and that it be
made Dart of these minutes:
RESOLUTION N0. 7109
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
$6,225,000 GENERAL OBLIGATION REFUNDING BONDS OF 1985
Motion carried ~-1. (Priebe opposed) This resolution
appears as Resolution No. 7109 in Resolution Book No. 53.
Item ~~21A CONSIDERATION OF THE STOREFRONT YOUTH ACTION
INCORPORATED REQUEST TO ALLOW INSERT IN THE UTILITY
BILLING
Council Member Bunee stated that since the Storefront had
already printed 12,000 inserts, that on a one-time basis the`"~"
council should allow this insert to be included with the utility
billing.
The council directed the City Manager to prepare a Council
policy for consideration regarding this type of request.
M/Sandahl, S/Bunee to allow the one time insertion of a
Storefront Youth Action insert in the utility billing.
Motion carried 5-0.
Item ~~21B SETTING A HEARING DATE OF NOVEMBER 25, 19 5 ON THE
CHANGE IN OWNERSHIP OF THE LIQUOR LICENSES FOR THE
GROUND ROUND RESTAURANT C.L. 422
City Manager Cartwright reviewed Council Letter No. 422
regarding a request for hearing for the issuance of an on-sale,
Sunday liquor and tavern license for Ground Round Incorporated.
Assistant City Attorney David Kennedy recommended that the
Council set the public hearing for November 25, 1985, and grant
a provisional on-sale Sunday liquor and tavern license to the
Ground Round until the formal license hearing date.
Council Meeting Minutes -20-
November 12, 1985
MlSandahl, S/Priebe that the council approve a provisional
on-sale li uor and tavern license to Ground Round and that the
date of the u lie hearing on the license be set for November
25. 19 5.
Motion carried 5-0.
Item #22 COUNCIL DISCUSSION ITEMS
Mayor Hamilton stated that he had received correspondence
regarding a proclamation to turn on .lights as a symbol of peace
during the November 19th meeting between President Reagan and
representatives of the•Soviet Union. He stated that he had not
received such a proclamation and that this was for council
information only.
Item #23 CLAIMS AND PAYROLLS
M/Runes, S/Ludeman to approve the claims and payrolls.
RICHFIELD BANK AND TRUST
Cheeks 641b/6471, 64720,79933 General $989,432.39
FIRST WESTERN BANK
Cheeks 2615/2630 General $624,927.06
Cheeks-5572/5920 Payroll $245,841.63
MIDWEST FEDERAL
Cheek 1022
Motion carried 5-0.
ADJOURNMENT
M/Bunee, S/Sandahl that the meeting adjourn.
Motion carried 5-0.
The meeting was adjourned at 12:38 /a.m. /J/
Date Approved: 12/9/85
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Thomas P. Ferber --
City Clerk
$ 32,000.00
john G . ~a~rtwrigh
City Manag r~ j ,
or
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