02-06-06 Special
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Special City Council Meeting
February 6, 2006
The meeting was called to order by Mayor Kirsch at 7:02 p.m.
Members Present:
Martin Kirsch, Mayor; Susan Rosenberg; Fred Wroge; Bill Kilian; and Sue
Sandahl.
Staff Present:
Steve Devich, City Manager; Mike Eastling, Public Works Director; Dan
Scott, Public Safety Director; Jim Topitzhofer, Recreation Services
Director; Bruce Palmborg, Community Development Director; Brad Sveum,
Fire Services Director; Bill Fillmore, Liquor Operations Director; and Cheryl
Krumholz, Recording Secretary.
Others Present:
Jane Ranuum, District 63 State Senator; Paul Thissen, District 63A State
Representative; Dan Larson, District 63B State Representative; and Russ
Susag, District 5 Met Council Representative.
Item #1
City Manager Devich stated the City's most significant concerns are the eminent domain
legislation, the bonding bill related to the 17th Avenue extension in the Cedar Corridor and
Recreation Asset Replacement Project and the bill removing the ability to certify delinquent utility
charges on rental property to the property owner. The League of Minnesota Cities (LMC) and
Association of Metropolitan Municipalities (AMM) are working on a bill regarding eminent domain.
City Manager Devich distributed a Legislative Information Report prepared by Community
Development staff stating concerns regarding proposed eminent domain restrictions in the Cedar
Corridor Tax Increment Financing Area.
Representative Thissen stated the Governor did not include any local projects in the
bonding bill. It's an uphill battle because trying to sell the regional impact is difficult. He added that
he requested a hearing on the ballfield bonding proposal.
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February 6, 2006
Representative Larson stated the two bonding proposals are good but it is rare for the
Governor to include these types of projects. Regional significance is needed. Hopefully, a hearing
will occur on the 17th Avenue improvements.
Senator Ranuum suggested the priority should be the road improvement proposal because
of the regional significance and metropolitan impact. She said she is going to ask for a hearing in
the Senate.
Mayor Kirsch said Minneapolis, Bloomington, Edina and Richfield are partnering on an
initiative to promote bicycle transportation in the southwest metropolitan area. This is critical to a
greater vision and connection in the metro area.
Council Member Kilian stated the roadway improvements have a regional impact as a
buffer to the spread of blight because it is an area adjacent to the airport.
Council Member Sandahl added that the ballfields were located in the area under the new
runway.
Representative Thissen said Richfield and Minneapolis did work together recently on a
pension commission matter.
Representative Thissen stated he senses there is going to be some change in the eminent
domain law this year, including objective criteria for defining blight. There is some question of
equity for projects already started.
Mayor Kirsch said the Cedar Corridor project could be shut down if eminent domain is not
an option. Eminent domain is a way to keep development in the core cities. One or two properties
should not be able to put a project in peril when the majority supports the project.
Council Member Kilian stated people could be harmed if one person could stop a project. If
there is going to be a law to permit this to happen, others should have a legal recourse so their
benefit is not lost. If an area is to be redeveloped and a legitimate offer is made on a piece of
property, that should become the value of the property if it's substantially more than what taxes are
currently paid.
Representative Thissen said there have been discussions regarding the holding up of a
project.
Council Member Kilian stated that the eminent domain process is changing the victim.
Council Member Wroge said his concerns about eminent domain include the property
owner, needing a specific definition of blight, and having a percentage of the commitment of sales
be a factor. The people need to be protected from the threat of being bought out by eminent
domain. He added he is upset by using the Best Buy project as an example since the end result
was good.
Council Member Sandahl expressed concern that some articles say economic development
is not a reason for eminent domain but she believes that option should be available for
redevelopment and not just for public facilities. Some communities, like Richfield, do not have a
high commercial tax base which results in people paying higher taxes which affects affordable
housing.
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February 6, 2006
Community Development Director Palmborg stated there was no condemnation on
residential properties, but there was some on commercial properties, in the Kensington Park
project.
Council Member Kilian said there has been responsible use of eminent domain. He added
that it appears that someone wants to scare somebody with eminent domain when, in essence, it's
a non-issue.
Senator Ranuum said the Supreme Court case doesn't change the law in Minnesota but
most people think it does. The taking of commercial property has fueled the controversy.
Residential property owners don't have the money to pursue this issue. Others are needed to join
the LMC bill.
Representative Larson said the philosophical question is, should government be able to
take my home. Most people believe they should be able to say no, but it's much more
complicated. It is important to work together and define the practical side for projects already
underway. Some reform will occur but harming Richfield residents needs to be prevented.
Council Member Wroge questioned the Cedar Corridor project being affected if the property
is already bought out prior to the law changing.
Representative Thissen explained the change would be effective March 1, 2006 so
holdouts could be affected with no eminent domain authority. A compromise may need to be
reached.
Representative Larson explained the Cedar Corridor redevelopment is underway so
hopefully, harm to the entire Corridor will be avoided.
Met Council representative Russ Susag stated the Met Council position was to have their
Community Development Committee revise the guidelines for the livable community grants to
specifically address eminent domain. The grant cannot take property for public purpose, but rather
public use. The Met Council presses communities for high density but has taken away the tool for
redevelopment.
Council Member Sandahl said it appears the best approach is to get a practical solution for
Cedar Point.
City Manager Devich agreed and added that the LMC bill does not help Cedar Point and
there are sharp philosophical differences.
Senator Ranuum stated that Cedar Point is emerging from airport expansion.
Representative Larson said that the project is resulting from State action on Richfield which
may qualify as a specific State project. Richfield should keep a low profile.
City Manager Devich said Richfield is a universal target for eminent domain.
Representative Thissen stated the City might want to meet directly with certain legislators.
Council Member Rosenberg said Richfield is a poster child and has taken a beating in the
press.
Representative Thissen suggested the City work with Best Buy. They've expressed
frustration with the beating up of their name.
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February 6, 2006
Senator Ranuum agreed and that the City show different viewpoints of how the community
has moved past this issue.
Council Member Sandahl said the Legislature needs to buy into the Cedar Point area as
airport impacted.
City Manager Devich said another issue is that Richfield is one of few cities to receive local
government aid (LGA).
Representative Thissen said the cigarette fee might impact the budget which may result in
more LGA to cities on direct property tax relief.
Mr. Susag asked about the motor vehicle sales tax amendment.
Representative Larson said there would be no significant discussion unless the bill passes.
Senator Ranuum stated another issue is the immigration status debate and the impact on
the economy.
Mayor Kirsch asked about the Legislation regarding sale of wine in grocery stores.
Liquor Operations Director Fillmore explained the Grocer's Association is not pursuing the
actual wine in the grocery bill. They are attempting to combat the State's 3-tier alcohol regulation
system as a new strategy.
The City Council thanked the Legislators for attending tonight's meeting and for all their
work on behalf of Richfield.
The meeting was adjourned by unanimous consent at 8: 19 p.m.
Date Approved: February 28, 2006
. Devich
City Manager
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Cheryl Krumhol .
Recording Secretary