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07-24-95 Regular CITY OF RICHFIELD, MINNESOTA REGULAR CITY COUNCIL MEETING July Liquor Operations Director; Bruce Palmborg, Housing and Redevelopment Coordinator; and Corrine Heine, Assistant City Attorney. order by Mayor Kirsch at 7:00 p.m. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE APPROVAL OF MINUTES ItemOPPORTUNITYFOR PERSONS TO ADDRESS THE CITY COUNCIL ON ANY ITEMNOT LISTED ON THE AGENDA. ItemCOUNCIL APPROVAL OF AGENDA to approve the agenda. Council Meeting Minutes Item CONSENT CALENDAR A. APPROVED RESOLUTION PROPOSING TO EXPAND BOUNDARIES OF 77TH STREET PROJECT AREA TO CEDAR AVENUE, PROPOSED CITY PROJECT 911, AND SPECIALLY ASSESS COSTS OF CURRENT SERVICES PROVIDED WITHIN 77TH STREET PROJECT AREA FOR PERIOD OF JANUARY THROUGH DECEMBER 1996, AND SETTING DATE OF HEARING FOR AUGUST 28, 1995 C.L. 187 RESOLUTION NO. 8263 RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT SERVICES PROVIDED WITHIN THE 77TH STREET PROJECT AREA FOR THE PERIOD JANUARY THROUGH DECEMBER CITY PROJECT NO. 911 This resolution appears as Resolution No. 8263 in Resolution Book No. 65. APPROVED OFF-STREET PARKING PERMIT TO ALLOW COMMON ENTRANCE TO 77TH STREET FROM PARKING LOTS AT 1420 AND 1500 APPROVED ITINERANT PLACE OF AMUSEMENT LICENSE WITH FEE WAIVER FOR OAK GROVE LUTHERAN CHURCH, 7045 LYNDALE AVENUE, C.L. 189 BLOCK PARTY ON AUGUST 5 AND APPROVED ON-SALE, NON-INTOXICATING MALT LIQUOR, ITINERANT OF ASSUMPTION, 305 EAST 77TH STREET, 1995 FUN FEST ON AUGUST 12 AND C.L. 190 APPROVED AUTHORIZATION TO ADVERTISE FOR BIDS FOR SMALL GARBAGE COMPACTOR TRUCK FOR USE BY PARK MAINTENANCE DIVISION C.L. 191 APPROVED RENEWAL OF COMMERCIAL KENNEL LICENSE FOR ANIMAL CARE CLINIC, 6521 CEDAR AVENUE C.L. 192 APPROVED RENEWAL OF COMMERCIAL KENNEL LICENSE FOR AIRPORT PET HOSPITAL, 6301 CEDAR AVENUE C.L. 193 APPROVED RENEWAL OF COMMERCIAL KENNEL LICENSE FOR VETERINARY HOSPITAL, 6436 LYNDALE AVENUE C.L. 194 S/Rosenberg to approve the consent calendar. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION APPROVING Item HOUSING PLAN AND FINANCING PROGRAM FOR HERITAGE SQUARE EAST, CRESTWOOD AND HAMPTON PLACE APARTMENTS. C.L. NO. 195 City Manager Prosser reviewed Council Letter No. 195 regarding consideration of adoption of a plan and financing program for the acquisition of the Heritage Square, Crestwood, Hampton Place Apartments. Larry Wozniczka, 6744 Wentworth Avenue, questioned whether there was a requirement that these properties be for low income families and if people would be forced to move out if they exceeded the income limit. City Manager Prosser explained that the statutory guidelines provide for occupancy by low and middle income persons or families.He stated that under the statute the income guideline limits are at $61,000 for a family of four. City Manager Prosser stated that there were no requirements to evict anyone who exceeds the guideline nor any intent to do so unless directed to by HRA or City Council policy. Council Member Susag stated that the HUD mortgage documents which the HRA assumed in the transaction from Sage Corporation contain the guidelines. He stated that there would be no change from when Sage owned the buildings. Larry Wozniczka, 6744 Wentworth Avenue, asked if a proforma sheet on the properties had been provided to the City Council. City Manager Prosser stated that a written proforma sheet had been provided to the Council on July 7, 1995. Mr. Wozniczka stated concerns about assuring the HRA payment in lieu of taxes from the properties. He stated opposition to the HRA acquiring and operating the apartments. City Manager Prosser stated that the payment in lieu of taxes was in the proforma and projections for the properties. Don Cederholm, 6214 Fifth Avenue, questioned and expressed concerns regarding the payment of the School Bond Referendum tax, shifting of tax burden, and tax reasons for the Sage proposal. City Manager Prosser stated that the School Board had requested that they lose no revenue as a result of this transaction.He explained the combination of the payment in lieu of taxes and collaboration with the State which will provide that no increased tax burden will fall on the Richfield taxpayers. Member Susag stated that it was the intention of both the HRA and the City Council provide an amount equivalent to what would have been paid in taxes by a Council to private owner to the City and School District. He explained the tax issue for the Sage partners was an income tax advantage in donating the apartments to the HRA rather than selling the properties. Mr. Cederholm made references to welfare and also criticized the Richfield Current articles related to this issue. City Manager Prosser stated that after all operating expenses including the payment in lieu of taxes, an excess cash flow benefit to the HRA of approximately $230,000 will be available to invest in the properties or benefit other multi-family Hein approximately more than properties.indicated the value of the properties $3 million had sold to a private entity. Mayor noted that the School Board had expressed their support for the acquisition. Mark Ruff, Publicorp, Inc., explained and responded to questions regarding the sources and uses of the project if the existing debt was refunded and tax exempt essential He function bond debt was undertaken as outlined on page 10 of the housing plan. stated this information was required by statute to be included in the plan even if bonding was a remote future consideration. City Manager Prosser indicated the HRA did not plan to refinance unless there would be a dramatic interest rate difference. Mr. Ruff stated the mortgage locked out any refinancing for two more years. Council Member Priebe stated he supported the plan because of the financial benefit to the City from the gift of the properties. He stated he did have some concerns about the HRA administering the project and that the properties be operated in a manner not detrimental to other multi-family properties.He also stated concern for protecting the City Manager Prosser stated the HRA has contracted with Stuart Management Corporation to manage the properties. Council Member Susag stated that the HRA consultant had inspected all of the units, common areas, and mechanicals declaring them in good condition. He reviewed the formation of three non-profit corporations, with the HRA Commissioners as board members, which will operate the apartment communities. He stated that the approximate City. $230,000 in cash flow would be beneficial to the multi-family communities in the Council Meeting Minutes Mayor stated that the consultants had given favorable reports on the advantages of accepting the gift of the apartments from Sage. He stated it was an opportunity to turn these properties into an asset and benefit residents who live in apartments now and in the future. S/Rosenberg, the following resolution be adopted. that it be spread the resolution book and that it be made part of these minutes; NO. 8264 RESOLUTION AUTHORIZING ADOPTING A HOUSING PLAN AND FINANCING PROGRAM FOR THE ACQUISITION OF CERTAIN MULTI-FAMILY HOUSING FACILITIES Motion carried 4-O. This resolution appears as Resolution No. 8264 in Resolution Book No.65. City Manager Prosser acknowledged the Richfield Sun-Current, for publishing several articles on this issue which helped to inform the public. He indicated an update will be provided in the next Your City newsletter. ItemCONSIDERATIONOFRESOLUTION APPROVING 1995-1996 LABOR CONTRACT WITH LAW ENFORCEMENT LABOR SERVICES, LOCAL 123. C.L. NO. 196 City Manager Prosser reviewed Council Letter No. 196 recommending approval of a Labor Agreement with the Law Enforcement Labor Services (LELS), Local 123 bargaining unit for the years 1995 and 1996. the followina resolution be adoeted. that it be in the resolution book and that it be made part of these minutes: RESOLUTION NO. 8265 RESOLUTION APPROVING REOPENER ISSUES OF LABOR AGREEMENT BETWEEN THE OF RICHFIELD AND LAW ENFORCEMENT LABOR SERVICES (LELS), LOCAL 123 BARGAINING UNIT FOR THE YEARS 1995 AND 1996 Motion carried 4-O. This resolution appears as Resolution No. 8265 in Resolution Book No.65 Item CONSIDERATION OF FIRST READING OF ORDINANCE AMENDING SECTION 416.07, SUBD. 2, ALLOWING TEMPORARY OFF-SITE DIRECTIONAL SIGN FOR MICROAGE, 515 WEST 77TH STREET; ILN REDEVELOPMENT AREA. C.L. NO. 197 City Manager Prosser reviewed Council Letter No. 197 regarding a proposed ordinance amending Section 416.07, subdivision 2, paragraph (g), clause to allow a temporary off-site directional sign for a business that has been relocated within the Interstate-Lyndale-Nicollet (ILN) Redevelopment Area. that this constitute the First Reading of this ordinance amendment an off-site directional sign within the ILN Redevelopment Area. a that the Public Hearing and Second Readina of the ordinance be scheduled for the 14. 1995 Citv Council meetinq. Motion carried 4-Q. Item CONSIDERATION OF YOUTH APPOINTMENT TO FRIENDSHIP CITY COMMISSION. NO. 198 Council Member Susag stated that the City Council had met at p.m. to interview applicant Alicia Van Der Bill for appointment to fill the youth vacancy on the Friendship City Commission. S/Rosenberg to appoint Alicia Van Der Bill to the Friendship City Commission as a youth member for a term which expires on May 1996. Item CONSIDERATION OF APPROVAL OF MEDIATION AGREEMENT RELATED TO EXTENSION OF RUNWAY 4-22. C.L. NO. 199 City Manager Prosser reviewed Council Letter No. 199 regarding the mediation related to the extension of Runway 4-22. He recommended that the Council not take action on the mediation agreement because earlier in the day Minneapolis had asked for additional conditions to the mediation agreement. He stated that the Metropolitan Council Transportation Committee had unanimously recommended the mediation agreement with some amended language despite objections from Minneapolis. City Manager Prosser stated that the proposed mediation agreement provides that the runway extension proceed subject to certain conditions which he summarized as follows: The participating agencies and surrounding communities should have more time to ¦ investigate the merits of noise distribution and other measures that provide relief from noise. Review of the environmental impacts that will be experienced as a result of the ¦ proposed North/South runway should MSP be expanded. The participating agencies and communities agree to commit up to $20,000 each ¦ for a survey of public opinion regarding noise mitigation alternatives. Further analysis of the cost-benefit analysis of the proposed change in runway use ¦ and associated noise mitigation programs. Further review of environmental impacts of adding flight tracks east of Cedar ¦ Avenue. Continuation of development of a noise mitigation plan acceptable to all parties. ¦ The MAC and the City of Richfield agree to stay with the state and federal lawsuits ¦ regarding Runway 4-22 and the City of Richfield will not seek injunctive relief against construction of the Runway 4-22 extension. The City would maintain the right to litigation if no satisfactory agreement is achieved. MAC, and the FAA agree not to assert any agreement or defense in the ¦ lawsuits based upon or relating to the fact that during of the mediation process, the MAC spent funds in connection with the noise redistribution or noise mitigation components of the Runway 4-22 extension project, including funds spent on any planning, engineering or design studies regarding the C/D complex or noise mitigation plan. Council Member Susag asked about the possible construction timetable for the extension of Runway 4-22. City Manager Prosser indicated construction would take approximately one year and begin in about six months. He stated that reconstruction of the south parallel runway would then begin and take approximately one year to complete during which time south noise. that Richfield will be heavily impacted by increased Henorth Richfield and south Minneapolis would experience a reduction in noise during this time. Council Member Priebe asked if the takeoff thresholds would be changed at that City Manager Prosser stated the thresholds would be moved to accommodate operations because capacity would be reduced during this time. Council Member Priebe stated that he felt it was important for the City to maintain if necessary. its right to pursue litigation approves the mediation agreement without Minneapolis. City Manager Prosser responded that Minneapolis would lose its voice on the issue if they refuse to participate. City Manager Prosser stated no action by the Council is recommended at this time and the process will continue to seek agreement on these issues. AIRPORT STATUS REPORT Item Council Member Susag noted that the City Council had received the latest Airport Item 77TH STREET PROJECT STATUS REPORT City Manager Prosser reviewed and answered questions regarding the following 77th Street Construction Project issues: Avenue Storm Sewer Project Humboldt has awarded the contract to Shafer Contracting. Shafer Contracting has balked at signing the contract until the major tunneling subcontractor on the job, Construction, signs the subcontract. A letter explaining the delay to the Humboldt Avenue residents is scheduled to be sent this week. The delay may Landscape Contractor, Lino Lakes Nursery Steel edging and planting beds are being installed. The irrigation subcontractor is falling behind schedule. The City Engineer is still hopeful of substantial completion by mid-August. Phase Street Contractor, Shafer Construction Concrete curb on the loop roads is being installed. Wall construction continues. Council Member Susag stated great disappointment in the delays in completing the Phase I landscaping. He suggested investigating tighter completion schedules for similar future work. City Manager Prosser indicated that the City could look at bidding landscaping with a short and long completion time to see if there is any great difference in cost. Portland Street Intersection Concrete work is almost complete and the intersection should be completely reopened soon. City Manager Prosser thanked residents adjacent to the project for their understanding during the period the contractor expansion joints in the pavement which generated a considerable amount of noise. Mayor asked for a status report on Phase II of the CSM Lyndale Shoppes City Manager Prosser reviewed the status of business relocations, demolition, and leasing for the project. Item LEGISLATIVE REPORT Item COUNCIL DISCUSSION ITEMS Council Member Susag invited the public to the Richfield Optimist Hole-in-One Event to be held on August 3, 4, and 5 at the Lyndale Fields. He stated funds raised would be used to support Richfield youth athletic programs. Council Member Susag outlined an idea that was discussed with School Board Chairperson Rowley at the July 22 Town Meeting. The idea was to invite the new Richfield Schools Superintendent, along with other leaders of Richfield’s Schools (i.e. Holy Angels, Blessed Trinity, Mt. Calvary, Fraser School) to a Council meeting. An Open House would be held prior to the meeting for the public to meet them and then they would be introduced at the Council Meeting for the cable tv audience. It was the consensus of the Council that this event be scheduled for a September Council meeting. Item CLAIMS AND PAYROLLS that the followina claims and payrolls be approved: RICHFIELD BANK TRUST CO. Checks: 19887-I 9935; 53489-53796 Council Meeting Minutes $ $