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12-09-1985CITY OF RICHFIELD, MINNESOTA REGULAR COUNCIL MEETING DECEMBER 9, 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; Steven Devich, Administrative Services Director; Thomas Ferber, City Clerk; Donald Fondrick, Community Services Director; Dennis Kraft, Community Development Director; and, Thomas Morgan, Public Safety Director. The meeting was called order by Mayor Hamilton at 7:00 p.m. Fred Babcock VFW Post 5555 presented the colors and led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES M/Ludeman, S/Bunce to_ a~pro Council Meeting of November 12, Meeting of November 25, 1985; a of November 25, 1985. Motion carried 5-0. the minutes of the regular 85; the Special Studv Session the regular Council.Meetin~ Item #1 OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL P. L. McKisson, 6428 Wentworth Avenue, objected to having all the snow plowed and left in front of his home on the cul-de- sac and noted-that Edina uses a plow which does not put snow into driveways. The Mayor read excerpts from a newspaper article featuring the Edina plow. In the article Edina officials indicated that operation of the special plow is very cumbersome and inefficient. Don Fondrick, Community Services Director, stated he would review the plowing techniques at this location and work with Mr. McKisson regarding his problem. 1 Council Meeting Minutes -2- December 9, 198^ Item #2 PRESENTATION OF CERTIFICATES OF APPRECIATION TO HOWARD BUNCE AND DON PRIEBE. C.L. 466. Mayor Hamilton read and presented plaques of appreciation of service to outgoing council members Howard Bunce and Don Priebe. Representatives of the Fred Babcock VFW Post presented a certificate of appreciation for community service to Council iKember Bunce. Item #3 RECOGNITION OF VOLUNTEER GROUPS THAT PARTICIPATE IN THE CITY OF RICHFIELD~S RECYCLING PROGRAM. C.L. 467 Mayor Hamilton presented certificates of appreciation to the volunteer groups who have participated in the city~s recycling program. City Manager Cartwright reviewed the Richfield Recycling program and Council Letter No. 470 (Consent Calendar Item 7A) regarding a contract with Hennepin County for funding recycling activities. Item #4 RECOGNITION OF BILL FILLt40RE, LIQUOR OPERATIONS DIRECTOR, AND HOWARD ROWLAND, PERSONNEL MANAGER, FOR OUTSTANDING SUPPORT OF THE UNITED WAY CAMPAIGN. C.L. 468 Mayor Hamilton presented certificates of appreciation from the United Way organization city employees Bill Fillmore and Howard Rowland for their outstanding leadership of the City of Richfield United Way Campaign for city employees. Item #5 PRESENTATION TO JEAN P•iITCHELL, FIidANCE MANAGER, THE FINANCIAL REPORTING ACHIEVEMENT AWARD FROM THE. GOVERNMEAJT FINANCE OFFICERS ASSOCIATION. C.L. 469 Mayor Hamilton presented the Award of Financial Reporting Achievement from the Government Finance Officers Association to Jean Mitchell, Finance Manager. i 1 Council Meeting Minutes Item #6 APPROVAL OF AGENDA -3- December 9, 1985 Council Member Priebe requested that an item regarding the city policy concerning high water bills resulting from meter changes be added to the agenda. Mayor Hamilton stated this would appear on the agenda as Item 28A. M/Priebe, S/Bunce to approve the agenda as amended. Motion carried 5-0. 1 Item #7 CONSENT CALENDAR A. CONSIDERATION OF A CONTRACT BETWEEN THE CITY OF RICHFIELD & HENNEPIN COUNTY FOR RECYCLING ACTIVITIES. C.L. 470. B. CONSIDERATION OF THE APPOINTMENT OF THE CITY'S WORKERS' COMPENSATION ADMINISTRATORS. C.L. 471 C. CONSIDERATION OF BIDS & AWARD OF CONTRACT FOR BROCHURE PAPER FOR 1985. C.L. 472. D. CONSIDERATION OF PURCHASES IN EXCESS OF $5,000 AND THE SALE OF USED WATER METERS. C.L. 473 E. AUTHORIZATION TO PREPARE PRELIMINARY ENGINEERING REPORT 1986 ALLEY PAVING PROJECT. C.L. 474. RESOLUTION N0. 7117 RESOLUTION ORDERING PRELIMINARY REPORT ON PROPOSED ALLEY PAVING, CITY PROJECT N0. 822 F. SCHEDULING OF PUBLIC HEARING FOR CONSIDERATION OF A WINE LICENSE FOR MAMA LU'S RESTAURANT. C.L. 475• 1 G. AUTHORIZATION TO SUBMIT A GRANT APPLICATION TO THE FORD FOUNDATION FOR POSSIBLE FUNDING OF LEGION LAKE IMPROVEMENTS. C.L. 476. H. CONSIDERATION OF A REQUEST TO RELOCATE AN ILLUMINATED SIGN AT WALSER BUICK. C.L. 477. I. ESTIMATE #2, BITUMINOUS ROADWAYS, C.P. 803. $26,583.21. Council Meeting Minutes -4- December 9, 1985 J. ESTIMATE #3, RI-CHARD KNUTSON, INC., 76TH AND WASHBURN STORM DRAINAGE IMPROVEMENTS - $49,704.89. K. ESTIMATE #3, EDWARD WATSON CONSTRUCTION CO., SIDEWALK AND CROSSWALK REPAIR, $273.30. M/Ludeman, S/Bunce to approve the consent calendar. Motion carried 5-0. Item #8 CITY COUNCIL CONSIDERATION OF A DEVELOPERS AGREEMENT BETWEEN PALSCO, THE DEVELOPERS OF A HAMPTON INN FRANCHISE PROJECT, THE HRA AND THE CITY OF RICHFIELD. C.L. 498 City Manager Cartwright announced that the HRA and the City Council would concurrently hold a meeting at this time to condider agenda item #8. City Manager Cartwright reviewed Council Letter No. 498 recommending that both the HRA and the City Council pass resolutions approving a contract for private development with PALCSCO, Inc. to build a Hampton Inn at 78th Street and Lyndale Avenue. HRA Chairman Harms inquired if the county assessor had agreed to the staggered EMV indicated in the developers agreement. City Attorney LeFevere responded that the assessor had agreed to this EMV. Council Member Priebe stated his opposition to the Hampton Inn project because it provided a minimal contribution to the tax increment and that it precludes any comprehensive redevelopment east of Lyndale Avenue. Council Member Ludeman stated his support for the Hampton Inn project. The HRA passed the HRA resolution approving the developers agreement. M/Ludeman, S/Sandahl 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. 7118 RESOLUTION APPROVING CONTRACT FOR PRIVATE DEVELOPMENT WITH PALSCO, INCORPORATED Motion carried 4-1. (Priebe opposed) This resolution appears as Resolution No. 7118 in Resolution Book No. 53. HRA adjourned their meeting at this time. Council Meeting Minutes -5- December 9, 1985 Item #9 PUBLIC HEARING OF A REQUEST FOR A PLANNED UNIT DEVELOP- MENT, VARIANCE & SPECIAL USE PERMIT TO CONSTRUCT A FIVE STORY 135 ROOM HAMPTON INN HOTEL WITH A RESTAURANT AT 78TH STREET & LYNDALE AVENUE. C.L. 489• Community Development Director Kraft reviewed Council Letter No. 489 regarding a request for a planned unit development plan, special use permit, and variance for a Hampton Inn Hotel and restaurant development at 78th Street and Lyndale Avenue. Mr. Kraft also indicated that PALSCO, Inc., the applicant,- is appealing the decision of the hearing examiner to deny the variance request. Council Member Sandahl inquired about the timing of the street improvement in relation to the opening of the hotel, stating that the .looping of the roads would mitigate the impact on the adjacent residential area. Community Development Director Kraft stated that it is anticipated the hotel will be completed prior to the road improvements. Council Member Priebe asked why the city was purchasing .right of way from the developer. Community Development Director Kraft stated that the city was purchasing right of way for the proposed 77th Street and Lyndale Avenue improvements. Ruth Larson, 7638 Harriet Avenue, expressed concern regarding potential increased traffic and crime in the neighborhood because of the hotel development and urged the closing of Harriet Avenue at 77th Street as soon as possible. City Manager Cartwright explained the looped roads or cul- de-sacs which are planned and indicated it would be possible to use temporary barricades prior to the street project. John Vandycke, architect for Hampton Inn, reviewed the site plans for the proposed development. Council Member Ludeman stated that the neighborhood should be involved in the decision regarding loop roads, cul-de-sacs, and barricades. City Manager Cartwright indicated this would be the case. Council-Meeting Minutes -6- December g, 1985 City Attorney LeFevere stated that the council is being asked to take three. actions: 1) Give first reading to the PUD ordinance and schedule second reading and the public hearing for January 13,- 1985. 2) Grant a variance for the additional floor area subject to passage of the PUD ordinance and its publication. 3) Approve the special use permit subject to the following stipulations: a) Approval and publication of the PUD ordinance; b) Lifting of the moratorium ordinance for this property; c) Designation of one of the two alternative designs; and, d) That the four stipulations in the staff recommenda- tion are met (page 9-6 of agenda packet). M/Bunce, S/Ludeman to close the public hearing. Motion carried 5-0. M/Bunce, S/Sandahl that this. constitute First Readin PUD ordinance and that the Public Hearing and Second Rea the ordinance be scheduled for January 13, 1985. Motion carried 4-1. M/Sandahl, S/Bunce to the PUD ordinance to allo ant a variance from the standard of P4/Sandahl, S/Ludeman to approve the special use permit subject to the following stimulations: 1.) Approval and publication of the PUD ordinance; 2.) Lifting of the moratorium ordinance for this property; 3.) Designation of one of the two alternative designs (135 Motel units with a free standing restaurant or 146 Motel units without a restaurant); (Priebe opposed) of the ng of Motion carried 4-1. (Priebe opposed) i~, U Council Meeting Minutes -7- December 9, 1985 4.) That the required easements for additional right-of-way along Lyndale Avenue and 77th Street be provided as required to carry out the planned street improvements; 5.) That the 78th Street frontage road be vacated; 6.) That a development proceed as shown on-the site plan. The parking demand should be closely monitored and if a parking shortage occurs on the site when it is complete and operating, that a minimum of 13 additional parking stalls be provided on the site; and, 7.) That the property be platted and that proper pre- liminary and final plats be filed for city approval. Motion carried 4-1. (Priebe opposed) Item #10 PUBLIC HEARING ON THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS ($7,000,000) FOR THE HAMPTON INN PROJECT. C.L. 490. Tom LaSalle, representitive of Hampton Inn, stated that the developer was no longer seeking IDRB funding for the project and would be proceeding with conventional financing. City Manager Cartwright stated that no action need be taken on this item due to this information. Item #11 HEARING TO CONSIDER RENEWAL OF ON-SALE LIQUOR LICENSES FOR CHI CHI'S RESTAURANT (CONTINUANCE TO JANUARY 13, 1986). C.L. 478. City Manager Cartwright recommended continuance of this item to allow the Public Safety Department more time to complete their investigation for the Chi Chi's license renewal application. M/Ludeman, S/Bunce to for Chi Chi's Restaurant meeting. Motion carried 5-0. continue the li uor license hearin o the January 13, 198 council Council Meeting Minutes -8- December 9, 1985 Item #12 HEARING TO CONSIDER RENEWAL OF ON-SALE AND SUNDAY LIQUOR LICENSES FOR AMERICAN LEGION POST 435• C.L. 479. City Manager Cartwright reviewed Council Letter No. 47g recommending approval for the renewal of the on-sale and Sunday liquor licenses for Richfield American Legion Post #435. George Kennealy, attorney for the applicant, requested that the council grant a waiver of the base investigative fee as provided by city ordinance 11.06 for both the American Legion and the VFW. Mr. Kennealy stated. that payment of these fees reduces the amount available to spend on community programs. Council Member Ludeman stated that the city currently only investigates new employees, thus limiting the fee. Public Safety Director Morgan explained the waiver provision of the ordinance and the basis of the investigation costs. Council discussion followed regarding the licensing and investigation of the veterans organizations. Council Member Priebe stated that investigations were necessary and it would be unfair to have the tax payers to fund the costs if the fees are waived. He noted that only members could use the facilities. Richard Christie, Quartermaster of the VFW, stated that investigations were necessary, but supported waiving of the fees. M/Ludeman, S/Sandahl to close the public hearing. Motion carried 5-0. M/Ludeman, S/Sandahl to Sundav liouor 1 i cen ge.a` rove the renewal of the on-sale Item #13 HEARING TO CONSIDER RENEWAL OF ON-SALE AND SUNDAY LIQUOR LICENSES FOR FRED BABCOCK VFW POST 5555. C.L. 480. City Manager Cartwright reviewed Council Letter No. 480 recommending approval for the renewal of the on-sale and Sunday liquor licenses for Fred Babcock VFW Post 5555. 1 1 1 Motion carried 3-2. (Bunce, Hamilton opposed) Council Meeting Minutes -9- December 9, 1985 M/Bunce, S/Ludeman to close the public hearing. Motion carried 5-0. M/Ludeman, S/Priebe to approve the renewal of the on-sale.. and Sunday__liquor licenses for Fred Babcock VFW Post 5555 and to deny their request to waive the fees. Motion carried 3-2. (Hamilton, Bunce opposed) Item #14 HEARING TO CONSIDER RENEWAL OF ON-SALE WINE LICENSE .AND NON-INTOXICATING MALT LIQUOR LICENSES FOR DAVANNI'S. C.L. 481. City Manager Cartwright reviewed Council Letter No. 481 recommending approval of the renewal of the on-sale wine license and non-intoxicating malt liquor license for Davanni's Inc. M/Bunce, S/Sandahl to close the ublic hearing. Mot-ion-carried 5-0. M/Sandahl, S/Ludeman to_ap rove the renewal of the on-sale wine and non-intoxicating malt liquor licenses for Davanni's Inc. Motion carried 5-0. Item #15 HEARING TO CONSIDER RENEWAL OF ON-SALE WINE LICENSE AND NON-INTOXICATING MALT LIQUOR LICENSES FOR THE INN. C.L. 482. City Manager Cartwiight reviewed Council Letter No. 482 recommending approval of the renewal of the on-sale wine license and non-intoxicating malt liquor .license for The Inn Airport. M/Ludeman, S/Sandahl to close the public hearing. Motion carried 5-0. M/Bunce, S/Priebe to approve the renewal of the on-sale wine and non-intoxicatin malt li uor licenses for Prest Motor Inn Inc. d b a The Inn Airport. Motion carried 5-0. Council Meeting Minutes -10- December 9, 19.85 Item #16 HEARING TO CONSIDER RENEWAL OF ON-SALE WINE LICENSE AND NON-INTOXICATING MALT LIQUOR LICENSES FOR MILLER'S FIRESIDE PIZZA. C.L. 483. City Manager Cartwright reviewed Council Letter No. 483 recommending approval of the renewal of the on-sale wine license and non-intoxicating malt liquor license for Millers Fireside Pizza. M/Ludeman,.S/Sandahl to close the public hearing. wine Fires Motion carried 5-0. M/Bunce, S/Sandahl to ap rove the renewal of the on-sale and-non-intoxicating mat liquor license or Millers za. Motion carried 5-0. Item #17 HEARING TO CONSIDER RENEWAL OF ON-SALE WINE LICENSE AND NON-INTOXICATING MALT LIQUOR LICENSES FOR SHAKEY'S. C.L. 484. City Manager Cartwright reviewed Council Letter No. 484 recommending approval of the renewal of the on-sale wine license and non-intoxicating malt liquor license for Shakey's Pizza Parlor. M/Ludeman, S/Sandahl to close the public hearing. Motion carried 5-0. M/Priebe, S/Bunce to approve the renewal of the on-sale wine and non-intoxicatin malt li uor license for Northstar Pizza Inc. d b a Shake 's Pizza Parlor. Motion carried 5-0. Item #18 HEARING TO CONSIDER A REQUEST FOR A SPECIAL USE PERMIT TO OPERATE A MISTER DONUT BAKERY/RESTAURANT AT 6435 LYNDALE. C.L. 485. City Manager Cartwright reviewed Council Letter No. 485 regarding a request by Five Points Food Service Corporation for a special use permit to allow the operation of a Mister Donut bakery/restaurant at 6435 Lyndale Avenue South. 1 Council Meeting Minutes -11- December 9, 1985 Dick Lila, Five Points Food Service Corp., spoke in support of granting the special use permit. M/Ludeman, S/Sandahl to close the public hearing. Motion carried 5-0. M/Sandahl, S/Ludeman to grant a special use permit to Five Points Food Service Cor oration to o erate a P4ister Donut bakery restaurant at 435 Lyndale Avenue South. Motion carried 5-0. Item #19 HEARING TO CONSIDER. REQUEST FOR A SPECIAL U E P MIT TO PERMIT A RESTAURANT AT 6509 NICLLET AVENUE. C.L. 486. City Manager Cartwright reviewed Council Letter 486 regarding a request for a special use permit to allow a restaurant at 6509 Nicollet Avenue South in the Richfield Shoppes North Center. Ken Manimotto, President of K-Pars Inc. spoke in support of granting a special use permit for the restaurant and answered questions regarding odors emitted by cooking. Council Member Ludeman directed staff to review with the applicant proposed equipment to minimize odor omissions from the restaurant. M/Bunce, S/Priebe to close the public hearing. Motion carried 5-0. M/Bunce, S/Priebe to grant a special use permit for a restaurant at 6509 Nicollet Avenue South. Item #20 HEARING ON A PLANNED UNIT DEVELOPMENT AND SPECIAL USE PERMIT TO ALLOW CONSTRUCTION OF AN ARBY'S RESTAURANT IN THE K-MART PARKING LOT, 6501 LYNDALE AVENUE. C.L. 487 Community Development Director Kraft reviewed Council Letter No. 487 regarding a request for a planned unit development plan amendment and special use permit to allow the construction of an Arby's Restaurant in the K-Mart parking lot, 6501 Lyndale Avenue. Council Meeting Minutes -12- .December 9, 1985 Chuck Nadler, Arby's Restaurants, stated he had examined all the alternative sites suggested by the council and city staff and found that none of them met the needs of Arby's. Therefore, Arby's is requesting the council approval them to relocate to the K-Mart site.. John Uban, Dahlgren, Shardlow, and Uban, reviewed the Arby's development concept and it's relationship to Richfield's zoning ordinance, comprehensive plan, and the LHN Plan. George Nadler, Arby's Restaurants, reviewed the history of Arby's in Richfield, it's menu, and it's community involvement. Dan Rosella, owner of the property located at 400 W. 65th Street, spoke in opposition to allowing an Arby's Restaurant to be built on the K-Mart site. Geraldine Sheehan, 401 W. 64 1/2 Street, stated that this proposal did not meet the standards of the zoning ordinance nor the intent of the original PUD. She stated that this project would create additional traffic and cause a parking shortage. Betty Carr, 6633 Lynwood Boulevard, spoke in opposition to the proposal stating it was inconsistent with the goals of the LHN. Paul Ekstrand, Executive Director of the Richfield Chamber of Commerce, reported that the Chamber of Commerce supported the project. Tom Miller, 6615 Lakeshore Drive, spoke in support of the project. Bill Watson, 6329 Harriet Avenue, spoke in opposition to the project and stated that people cannot get to the walk buttons for the signal at 65th Street and Lyndale Avenue because of the snow. Linda McCarter, Progress Valley House, stated that Arby's provides jobs to participants.of their treatment program, thus providing service to the community. Dorothy Sheehan, 401 W. 64 1/2 Street, stated that Arby's had given coupons to those signing a petition in favor o.f the project. Larry Woznicska, 6744 Wentworth Avenue, stated his . opposition to the project because it would change the character of the LHN and urged that Arby's remain in the Penn/66th area as an anchor to redevelop that area. Council Meeting Minutes -13- December g, 1985 Council Member Ludeman stated he opposed allowing a free standing restaurant on this site; that other acceptable sites were available; and, that allowing the 12.5 foot setback would preclude the construction of left turn lanes on 65th Street if they are needed in the future. Council-Member Sandahl stated he supported the proposal and felt that the traffic increase would be minimal. Council Member Priebe asked if Mr. Nadler would accept the Planning Commission stipulations. Chuck Nadler stated that the Planning Commission stipulations were acceptable to Arby's. Council Member Bunce spoke in support of the Arby's proposal. Mayor Hamilton stated that there was a need for this type of restaurant in-the area to serve the high rises and apartments and that Arby's would create a minimal amount of increased traffic. City Attorney LeFevere stated that it would require four affirnative votes to amend the PUD. The city attorney asked for clarification of the intent of the Planning Commission stipulation No. 3. Connie Hoverson, Planning Commission Chair, stated that if the city determines there is a parking problem, Franchise Associates, Inc, should be required to close the restaurant and remove the building. City Attorney LeFevere indicated that the city council would make the determination on this issue. Chuck Nadler, Arby's, stated that they would agree to close and remove the building. He asked that standards that would establish when a parking problem existed be written into an agreement. M/Bunce, S/Ludeman to close the public hearing. Motion carried 5-0. M/Priebe, S/Bunce to approve the planned unit development plan amendment and s ecial use ermit to allow construction of an Arby's Restaurant in the K-Mart parkin lot, 501 Lyndale Avenue sub,'ect to the following sti ulations: 1. That the proposed restaurant design meet the LHN Urban Design Elements. Council Meeting Minutes 2. The desi n of the 5th Street and Ly approved by the Pu that proper corner -14- December 9, 1985 berm and landscaping adjacent to bdale Avenue intersection be blic Safety Department to insure visibility is maintained. 3. That Franchise Associates, Inc. agree in writing to close the restaurant and remove the building if the city determines that there is a parking problem at a suture Gate. Motion carried 4-1. (Ludeman opposed) Item #21 PUBLIC HEARING ON THE ENVIRONMENT L ASSESSMENT WORKSHEET FOR THE PROPOSED CDR DEVELOPMENT (CONTINUANCE TO JANUARY 13, 1986) C.L. 488. City Manager Cartwright reviewed Council Letter No. 4.88 recommending continuance of the public hearing on the _ Environmental Assessment Worksheet for the proposed CDR Development to January 13, 1986, because the public hearing notice for the December 9, 1985, Council Meeting was not published. Mark Johnson, Sun -Newspapers, explained why the public hearing notice had not been published. M/Sandahl, S/Ludeman to continue the public hearing on the Environmental Assessment Worksheet for the ro osed CDR Development to January 13, 198 . Motion carried 5-0. Item #22 PUBLIC HEARING AND SECOND READING OF AN ORDINANCE REGULATING SATELLITE ANTENNAE AND TOWERS. C.L. 491 City Manager Cartwright reviewed Council Letter No. 491 regarding an ordinance amendment regulating satellite antennae and towers. M/Ludeman, S/Sandahl to close the public hearing. Motion carried 5-0. M/Ludeman, S/Sandahl that this constitute a Second Reading of Bill 1985-35, that it be published in the official newspaper and that it be made art of these minutes. Motion carried 5-0. 1 Council Meeting Minutes -15- December 9, 1985 Item #23 APPEAL OF HEARING EXAMINER'S DENIAL OF A VARIANCE REQUEST AT 7045 JAMES AVENUE SOUTH. C.L. 495 Community Development Director Kraft reviewed Council Letter No. 495 regarding an appeal by Mr. Robert Burg of the hearing examiners denial of his variance request to build a garage addition at 7045 James Avenue. Robert Burg, 7045 James Avenue, spoke in support of granting the variance. Bob Jablonski, former neighbor of Mr. Burg, spoke in support of Mr. Burg's request. M/Ludeman, S/Sandahl to close the public hearing. Motion carried 5-0. 1 M/Ludeman, S/Bunce to overrule the hearing examiners denial of the variance and to grant a variance to the rearyard setback to allow the construction of a garage addition at 7045 James Avenue. Motion carried 5-0. Item #24 CONSIDERATION OF BIDS, MINUTES, AND AWARD OF ONTRA T FOR STORM DRAINAGE IMPROVEMENTS TO NORBY AND WILSON PONDS. C.L. 492. Community Services Director Fondrick reviewed Council Letter No. 492 recommending the award of contract for storm sewer improvements for Norby Pond and Wilson Pond be made to Arcon, Inc. Mr. Fondrick noted that the low bid was $400,000 below the engineers estimate. M/Ludeman, 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. 7119 RESOLUTION ACCEPTING BID AND AWARDING CONTRACT FOR STORM SEWER AND APPURTENANT WORK C.P. 708-1564 AND C.P. 708-1565 Motion carried 4-0. (Mayor Hamilton was absent for this vote. This resolution appears as Resolution No. 7119 in Resolution Book No. 53. Council Meeting Minutes -16- December 9, 1985 Item #25 RESOLUTIONS PROVIDING FOR A REDUCTION IN THE ANNUAL INTEREST RATE FOR CITY PROJECT N0. 793, 1984 ALLEY PAVING AND CITY PROJECT N0. 813, STORM SEWER IMPROVEMENT FOR RICHFIELD STATE AGENCY/MARKET PLAZA. C.L. 493. City Manager Cartwright reviewed Council Letter No. 493 recommending a reduction in the annual interest rate for City Project No. 793 and City Project No. 813, from 9% to 8.581. M/Sandahl, S/Ludeman that the following resolution be ado ted; that it be spread in the resolution book and that it be made part of these minutes: RESOLUTION N0. 7120 RESOLUTION AMENDING RESOLUTION N0. 7071 ESTABLISHING ANNUAL INTEREST RATE FOR CITY PROJECT N0. ?93, 1984 ALLEY PAVING Motion carried 5-0. This resolution appears as Resolution No. 7120 in Resolution Book No. 53. M/Sandahl, S/Ludeman 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. 7121 RESOLUTION AMENDING RESOLUTION N0. 7072 ADOPTING ASSESSMENT ON CITY PROJECT N0. 813 RICHFIELD STATE AGENCY STORM SEWER IMPROVEMENT, ESTABLISHING ANNUAL INTEREST RATE Motion carried 5-0. Item #26 A RESOLUTION AUTHORIZING THE ISSU NCE AND SALE OF $400,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE ORECK PLAZA PROJECT, 64TH STREET AND LYNDALE AVE. C.L. 494. ~1 1 City Manager Cartwright reviewed Council Letter No. 494 regarding the issuance and sale of $400,000 Industrial Development Revenue Bonds for the Oreck Plaza Project at 64th Street And Lyndale Avenue. il' RESOLUTION N0. 7122 .RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF $400,000 COMMERCIAL DEVELOPMENT REVENUE NOTE OF 1985 (ORECK PLAZA PROJECT) PURSUANT TO MINNESOTA STATUTES, CHAPTER 474 i Council Meeting Minutes -17- M/Ludeman, S/Sandahl that the follows adopted; that it be spread in the resolut made part of these minutes: Motion carried 5-0. This resolution appears as Resolution No. 7122 in Resolution Book No. 53. Item #27 REQUEST BY RICHFIELD STATE AGENCY FOR THE CITY COUNCIL TO RECONSIDER THE DENIAL OF AN AMENDMENT TO THE PLANNED UNIT DEVELOPMENT TO PERMIT THE BUILDING AT 6637 LYNDALE TO REMAIN IN PLACE UNTIL PHASE III OF THEIR REDEVELOPMENT PROJECT IS COMPLETED. C.L. 496. Community Development Director Kraft reviewed Council Letter No. 496 regarding a request by Richfield State Agency for the city council to reconsider the denial of an amendment to=the Planned Unit Development Plan to allow the building at 6637 Lyndale to remain in place until Phase III of their redevelopment is completed. M/Bunce, S/Ludeman to_ re_c_onsider the previous council action to deny the amendment to the PUD. Motion carried 5-0. Council Member Bunce stated he now supports allowing the 6637 Lyndale Avenue building to remain. Mayor Hamilton spoke in support of the amendment and stated that Mr. Kirchner of RSA has agreed to remove the building in Phase III. Council Member Priebe stated that he desired to have a guarantee that Phase III of the RSA Project will occur. Mayor Hamilton stated that Mr. Kirchner had indicated Phase III will occur in 3-4 years. Council Member Ludeman stated it would be inconsistent to allow Arby's to build in K-Mart's parking lot and not to allow the 6637 Lyndale Avenue building remain. December 9, 1985 g resolution be on book and that it be Council Meeting Minutes -18- December 9, 1985 M/Ludeman, S/Sandahl to a rove an amendment to the RSA Planned Unit Development Plan to permit the buildin at 63 Lyndale Avenue_ to remain in place until Phase III of their. redevelopment proect. Motion carried 4-1. (Priebe opposed) Item #28 REQUEST BY PAUL KNUDSON FOR-THE COUNCIL TO RECONSIDER THE DENIAL OF A SPECIAL USE PERMIT TO ALLOW A SITDOWN RESTAURANT AT 7724 MORGAN AVENUE. C.L. 497• City Manager Cartwright reviewed Council Letter No. 497 regarding a request by Mr. Paul Knudson for the council to reconsider the denial of a special use permit for a restaurant at 7724 Morgan Avenue. M/Sandahl, S/Priebe to rec_o_nsider the denial of a special use permit for a restaurant at 7724 Morgan Avenue. Motion carried 3-2. (Hamilton, Ludeman opposed) Paul Knudson spoke in support of granting the special use permit and presented a petition supporting his proposal. Discussion followed regarding the possible purchase of the Viking Center by Walser Buick and the demolition of the building. Jim Bergin, 7627 Oliver Avenue, spoke in opposition to granting a special use permit for Mr. Knudson's restaurant. M/Priebe, S/Sandahl t_o__set a public hearing to consider the rantin of a s ecial use ermit to allow a sitdown restaurant at 7724 MorganAyenue for January 13, 198 . Motion carried 5-0. Item #28A CONSIDERATION OF A POLICY REGARDING EXTRAORDINARY WATER BILLS RESULTING FROM METER CHANGES. 1 Council Member Priebe suggested a policy be considered to limit a homeowners liability for retroactive charges due to the malfunction of the city's remote water meter recorders and cited an example of one homeowner who was billed $500 in retroactive charges. Council Meeting Minutes -19- December g, 1985 Council discussion followed regarding whether action should be taken at this time or if a policy should be considered at the January 13, 1986, meeting. Don Frondrick, Community Service Director, suggested that the council consider this matter on January 13, 1986, at which time he would have a full report to present. M/Sandahl, S/Bunce to consider an extraordinar water bill policy at the January 13, 198 meeting and to direct staff to provide information and to defer collection of these retroactive bills until city council consideration.. Motion carried 4-1. (Priebe opposed) Item #30 CLAIMS AND PAYROLLS M/Ludeman, S/Priebe that the following claims and a rolls be ap roved: RICHFIELD BANK AND TRUST Checks 6522/6526, 80178/80356 General $ 603,113.97 FIRST WESTERN BANK Checks 2675/2700 General $3,096,227.08 Checks 6282/6641 Payroll $ 252,306.90 Motion carried 5-0. ADJOURNMENT M/Sandahl, S/Ludeman that the meeting adjourn. Motion carried 5-0. The meeting was adjourned 10 Date Approved: 1/13/86 Gf~ homas P. Ferber City Clerk