01-27-1987 JointCITY OF RICHFIELD, MINNE30TA
JOINT CITY COUNCIL/HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
January 27, 1987
City Council Reconvened from
Regular January 26, 1987 Council Meeting
MEMBERS PRESENT: John Hamilton, Mayor; Ivan Ludeman; Martin
Kirsch; and Edwina Garcia.
HRA MEMBERS
PRESENT: Thomas Harms, Chairman; Donald Hassenstab;
Joan Helmberger; Vern Luettinger; and Ivan
Ludeman.
STAFF PRESENT: James Prosser, City Manager; Steven Devich,
Administrative Services Director; Thomas P.
Ferber, City Clerk; Bruce Palmborg, Acting
Community Development Director; John Dean,
Assistant City Attorney.
The meeting was called to order by Mayor Hamilton at 7:03
p.m., reconvening the adjourned regular January 26, 1987 City
Council meeting to the January 27, 1987 Joint City Council/HRA
meeting.
City Manager Prosser stated that the purpose of the Joint
HRA/City Council meeting was to review the Tushie-Derrick
development proposal for the Graham Avenue redevelopment site.
Dick Shaller, President of Big Wheel Auto Stores, speaking
on behalf of Mr. Trestman and himself, stated that the Tushie-
Derrick Landmark Center proposal is a good prof-ect because it
satisfies the needs of the VFW, the existing retail stores on the
site, the city's desire for moderate priced housing for seniors,
maintains the retail character of Lyndale Avenue, provides the
best maximum use of the land, and is the best option for the
neighborhood and Lake Shore Drive Condominium. He stated that he
and Mr. Trestman have withdrawn their proposal for the site and
will become partners in the Tushie-Derrick development.
Roger Derrick, representing Lyndale Partners, reviewed the
events which resulted in the Landmark Center development
proposal.
Gary Tushie, Lyndale Partners, reviewed the site plans,
elevation drawings, and scale model of the Landmark Center,
noting the changes in the building plans since it was first
proposed.
City Manager Prosser reviewed Council Letter No. 30
recommending that the staff be authorized to initiate
negotiations on behalf of the HRA with the developers of the
proposed Landmark Center and that staff request the City Council
Council Minutes 2 January 27, 1987
concur in the selection of Tushie-Derrick as developer and
authorize negotiations on their behalf.
Mayor Hamilton asked if medical offices would be included in
the development and when construction would begin.
Roger Derrick stated a medical tenant had been identified
and construction could begin in 6 months.
Commissioner Helmberger asked how it can be insured that
Richfield's low and moderate income residents would have first
access to the housing units.
Jerry Courteau, Senior Vice Commander of the VFW, stated the
post has asked that no other full service restaurant locate in
the center and the VFW is negotiating to possibly operate a
second restaurant that would be open to the public.
Commissioner Luettinger stated he favors allowing another
restaurant tenant. He asked who would pay for the additional
landscape buffering on the Lake Shore Drive Condominium boundary.
Roger Derrick stated the developer would pay for this
landscaping.
Council Member Ludeman stated that additional screening is
necessary and strongly urged the staff and developer to
investigate shifting the footprint of the building 10-12 feet
closer to Lyndale Avenue to provide additional buffer area for
the Lake Shore Drive Condominiums.
Council Member Kirsch asked what is the relationship between
the developers and the VFW.
Roger Derrick responded that the developer would purchase
the VFW property; the VFW would lease space in the development;
and, the VFW would become a limited partner in the development if
its membership approves.
Jerry Courteau stated that the membership had given a vote
of confidence to continue negotiations and will be asked for
formal approval once concrete figures have been determined.
Commissioner Hassenstab inquired about the status of Lake
Shore Drive Condominium Lot 17; the affect of the Tushie-Derrick
proposal on property values at Lake Shore Drive Condominium; the
timeframe needed for the Environmental Assessment Worksheet
(EAW); whether other government agencies must review the EAW;
whether the trees to remain have been determined; whether large
semi-trucks will have access to the rear delivery area; what
assist the developer is asking of the HRA; and whether this
development would affect the status of the Lake Shore. Drive
Condominium bonds.
Council Minutes 3 January 27, 1987
City staff and the developer responded that Lake Shore Drive
Condominium Lot 17 is owned by the Condominium Association; that
an independent appraisal by Brad Bjorklund indicated no negative
affect on property values at Lake Shore Drive Condominium; an
Environmental Assessment Worksheet will take approximately two
months to prepare; other governmental agencies do not review the
EAW, however, if an Environmental Impact Statement is required
other agencies would review it; the trees to remain have been
determined; semi-trucks cannot drive to the rear of the building
because of the height of the building canopy; the developer is _
requesting approximately 2 million dollars in HRA assistance;
and, the development will not affect the retirement of the LHN
bonds.
HRA Chairman Harms asked if the shadow of the Landmark
Center building would project on to the Lake Shore Drive
Condominiums.
Gary Tushie stated that a shadow study indicates the shadow
would not project onto the Lake Shore Drive Condominiums.
HRA Chairman Harms asked if lease covenants would restrict
the times of truck deliveries and questioned if a blank wall
would border the Lake Shore Drive Condominium property.
Roger Derrick indicated the wall would be below grade and
that truck deliveries would be restricted to daytime hours.
Discussion followed regarding the role of the developer and
city in marketing the developer subsidized housing to Richfield
residents.
Betty Bruce, 6615 Lake Shore Drive Condominium, expressed
concern about the buffering between the Landmark Center and the
Lake Shore Drive Condominiums.
Mrs. Moore, Lake Shore Drive Condominium, expressed concern
that the Landmark Center would partially block her view of Wood
Lake.
Fred Moore, Lake Shore Drive Condominium, inquired if there
is a market for additional retail space in the area.
City Manager Prosser stated that a marketing consultant
indicated that there is a market for the proposed retail space
and that several potential tenants are already identified.
Thomas Thompson, 6808 Grand Avenue, inquired how much retail
space remains to be leased.
Roger Derrick indicated 37,000 square feet is available.
Council Minutes 4 January Z7, 1987
Orville Rasmussen, 6615 Lake Shore Drive Condominium,
expressed his concerns regarding increased traffic, pedestrian
safety, and property values.
Louise Dalquist, President Pro Tem of the Board of Directors
of the Lake Shore Drive Condominium Association, read a statement
into the record (Clerks File »C-283.
Harold Bolstad, 6615 Lake Shore Drive Condominium,
questioned whether the VFW as a non-profit organization can
invest in a for profit venture.
Jerry Courteau, Senior Vice Commander of the VFW, responded
that this is legal.
M/Hassenstab, S/Luettinger to close the public hearing.
I`iotion carried 5-0.
Each city council member and HRA Commissioner spoke in
support of the Landmark Center proposal and thanked the residents
for their letters, comments, and input which influenced the
developers proposal, making it a better project for the city and
the neighborhood.
M/Luettinger, S/Helmberger to authorize staff to initiate
negotiations on behalf of the HRA+, with the developers of the
proposed Landmark Center and that staff request the City t"ouncil
to concur in the selection of Tushie-Derrick as developer and
authorize negotiations on their behalf.
notion carried 5-0.
M/Ludeman, S/Kirsch that the city council concurs with the
HRA in the selection of the developers of the proposed Landmark
Center for the Graham Avenue development site and authorizes
staff to initiate negotiations on behalf of the cit~r council with
Tushie-Derrick.
Motion carried 4-0.
M/Kirsch, S/Ludeman that the city council meeting adjourn.
Motion carried ~-0.
The city council meeting was adjourn a
Date Approved: ~ 2/9/87
~~~ ~ ~,~~
Thomas P. Ferber
City Clerk
~ohn ~~~on '~ Mayor
am s Prosser
' y Manager
~_