10-28-96 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
OCTOBER 28, 1996
CALL TO ORDER
The meeting was called to order by Mayor Kirsch at 7:00 p.m.
PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE
Mayor Kirsch led the audience in the Pledge of Allegiance.
ROLL CALL
Members Present:Martin Kirsch, Mayor; Don Priebe; Susan Rosenberg; Michael
Sandahl; and Russ Susag.
Staff Present :James Prosser, City Manager; Steven Devich, Administrative
Services Director/Acting City Clerk; Bruce Palmborg, Community
Development Director; Mike Eastling, City Engineer; Gretchen
Blank, Leisure Services Coordinator; Jack Erskine, Public Safety
Director; and John Dean, City Attorney.
APPROVAL OF MINUTES
M/Sandahl, S/Priebe to approve the minutes of the Regular City Council Meeting of
October 14, 1996.
Motion carried 5-0.
Council Meeting Minutes-2-October 28, 1996
Item #1OPPORTUNITY FOR PERSONS TO ADDRESS THE CITY COUNCIL ON
ANY ITEM NOT LISTED ON THE AGENDA.
Cheryl Triggs, 7639 Penn Avenue, questioned an endorsement letter sent out by
Mayor Kirsch in support of Brain Skon. She stated that this was especially disturbing to
her because Mr. Skon advocates the elimination of the Fiscal Disparities Program which
greatly benefits Richfield.
Mayor Kirsch stated that Fiscal Disparities was an issue that he would speak to the
candidate about.
Mayor Kirsch reported on the issues considered at a MAC meeting this afternoon.
Mayor Kirsch summarized Richfield's position on sound mitigation issues and MAC's
notice to terminate the lease for Rich Acres Golf Course and the ballfields. The Mayor
stated that the City has asked repeatedly for, and not received, an EIS on the north-south
runway as well as measures of ground noise.
City Manager Prosser stated that the City and MAC were to have a plan in place for
the termination of the lease for the ballfields and the golf course before such notice was to
be initiated. This was not done; MAC has instead taken what staff believes is a premature
action to terminate the lease agreement.
Mayor Kirsch further stated that the youth baseball and softball programs are done
by volunteers and the 18 months' notice is not nearly enough time to find replacement
facilities and deal with related matters.
City Attorney John Dean stated that his staff has reviewed the golf course lease
agreement with MAC and the MAC's resolution regarding this issue. Mr. Dean made the
following observations:
1.MAC has the superior right to use the property for airport purposes.
2.It appears, however, that there are a number of things that must be done
before the MAC can commence construction for the runway. Thus they may
not be in an appropriate position to begin the process of terminating the lease
with the City.
Council Member Russ Susag thanked all those who attended the MAC meeting
regarding the issues of sound mitigation and the lease termination action.
Council Member Sandahl stated that he felt that the MAC was extremely arrogant in
their dealings with the City in this matter, especially by not giving the City any notice of
Monday's action. He felt City staff should have authority to take action under any form of
law to respond to this issue.
Mr. Dean stated that a declaratory judgment with an injunction may be the way to
proceed.
Council Meeting Minutes-3-October 28, 1996
Council Member Priebe stated this latest MAC action is just a continuation of the
policy that the MAC has had in effect since the 1970's of shifting noise to the suburbs
south and west of the airport. He felt the City's best chance would be through the courts.
Mr. Priebe also added that Minneapolis was given a veto power with respect to
construction of the proposed north parallel runway, while no suburbs were given any such
veto power with the north-south runway. He felt that this discrepancy should be fully
examined in researching this legal issue.
Mayor Kirsch asked Public Safety Director Jack Erskine to address the Council
regarding his pending resignation to accept an offer in the private sector.
Mr. Erskine stated his intention to resign his position with the City effective
November 1, 1996.
Council Members thanked Mr. Erskine for his dedicated service to the City.
Council Member Rosenberg singled out Mr. Erskine's strong support for Cornerstone and
domestic violence programs.
Item #2COUNCIL APPROVAL OF AGENDA
M/Susag, S/Priebe to approve the agenda with addition of Item 9A,
AIRPORT/GOLF COURSE LEASE ISSUE.
Motion carried 5-0.
Item #3CONSENT CALENDAR
A.APPROVED RESOLUTION AUTHORIZING SUBDIVISION WAIVER FOR
SHOPS AT LYNDALE, 700-1150 WEST 78TH STREET C.L. 318
RESOLUTION NO. 8397
RESOLUTION AUTHORIZING A SUBDIVISION WAIVER
77TH STREET AND VACATED COLFAX AVENUE
This resolution appears as Resolution No. 8397 in Resolution Book No. 66.
B.APPROVED RESOLUTION AUTHORIZING CONTINUED PARTICIPATION IN
LIVABLE COMMUNITIES ACT PROGRAMS ADMINISTERED BY
METROPOLITAN COUNCIL C.L. 319
Council Meeting Minutes-4-October 28, 1996
RESOLUTION NO. 8398
RESOLUTION ELECTING TO CONTINUE PARTICIPATING IN
THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM
UNDER THE METROPOLITAN LIVABLE COMMUNITIES ACT
CALENDAR YEAR 1997
This resolution appears as Resolution No. 8398 in Resolution Book No. 66.
C.APPROVED EXTENDING CONTRACT NO. A01384 WITH HENNEPIN COUNTY
TO ALLOW CONTINUED ACCESS TO PROPERTY INFORMATION SYSTEM.
C.L. 320
D.APPROVED PURCHASE IN EXCESS OF $25,000 FOR ESTIMATED 1,400 TON
OF ROCK SALT FOR 1996/97 WINTER SEASON FROM CARGILL
INCORPORATED, SALT DIVISION, LANSING, NEW YORK FOR ESTIMATED
TOTAL AMOUNT OF $38,934 C.L. 321
E.APPROVED PURCHASE IN EXCESS OF $25,000 FOR ONE NEW ASPHALT
ROLLER FROM HAYDEN-MURPHY EQUIPMENT COMPANY FOR TOTAL
AMOUNT OF $33,015 C.L. 322
F.APPROVED REQUEST FOR PUBLIC DANCE LICENSE FOR EL PULSO DE LA
VIDA AT ST. PETER’S CATHOLIC CHURCH, 6730 NICOLLET AVENUE, FOR
NOVEMBER 2, 9 AND 23, 1996 C.L. 323
M/Sandahl, S/Susag to approve the consent calendar.
Motion carried 5-0.
Item #4PUBLIC HEARING AND CONSIDERATION OF RESOLUTION REGARDING
APPROVAL OF MODIFICATION TO RICHFIELD REDEVELOPMENT
PROJECT AREA REDEVELOPMENT PLAN; ESTABLISHMENT OF
INTERCHANGE TAX INCREMENT FINANCING DISTRICT; AND
ADOPTION OF INTERCHANGE TAX INCREMENT FINANCING PLAN. C.L.
324
City Manager Prosser reviewed Council Letter No. 324 regarding public hearing
and consideration of resolution regarding approval of modification to Richfield
Redevelopment Project Area Plan; establishment of Interchange Tax Increment Financing
District; and adoption of Interchange Tax Increment Financing Plan. He asked that Items
No. 4 and No. 5 be considered concurrently. Mr. Prosser stated that the HRA would be
the body that would determine if the developer would receive the proposed assistance.
The City Manager described the traffic calming efforts undertaken in the area.
Council Meeting Minutes-5-October 28, 1996
Gary Tushie, architect for the Galyan's project, stated that he was available to
answer questions or to present a site plan if the Council wished to review the plan.
Council Member Susag asked Sid Inman of Ehlers and Associates if the HRA
action to reduce the TIF from 25 to 20 years would affect the "but for" analysis.
Sid Inman, Ehlers and Associates, stated that it just reduces the developer's
window of opportunity to capture increment by five years. It does not change the
underlying analysis.
Paul Kachelmeier, 7610 Logan Avenue, spoke against the public subsidy in the
form of TIF for this project. He also questioned the validity of the traffic counts done on
77th Street.
Council Member Priebe gave Mr. Kachelmeier a copy of a letter he wrote to the
City Council and HRA opposing the financing for this proposed project.
Jim Bergin, 7627 Oliver Avenue, thanked the City Council and staff for conducting
the traffic study in the area. He spoke in opposition to the billboard signs on the property.
He stated that a condition of the conditional use permit be that the signs go.
Terry Ahlstrom, 7600 Morgan Avenue, stated that he agrees with Mr. Bergin and
that he also had a concern with the traffic.
Larry Wozniczka, 6744 Wentworth Avenue, spoke in opposition to the proposed
development, especially with respect to the proposed TIF assistance. He wanted to know
where the City's five percent contribution would come from.
M/Susag, S/Sandahl to close the public hearing.
Motion carried 5-0.
Mr. Susag asked staff to respond to the concerns raised by those addressing the
Council on this issue.
City Attorney John Dean responded to the question of transferring the TIF to a new
owner if the property was sold. He stated that the City would not likely lose money on any
future sale of the property.
Mr. Dean stated that the "but for" analysis was done and the results were
presented to the HRA on October 21, 1996. Mr. Dean stated that Mr. Inman performed
the analysis and concluded that TIF assistance was necessary.
Mr. Prosser stated that the five percent City share would come in the form of public
improvements and staff review. The actual funds would come from HRA funds and
possibly Municipal State Aid (M.S.A.) funds.
Council Meeting Minutes-6-October 28, 1996
Mr. Priebe spoke in opposition to the proposed project. Mr. Priebe described the
disadvantages of the proposed financing assistance and the limitations in the tax
contribution of the project area to be paid to the City, School District and County. He
stated that the City should offer the developer $250,000 on a take it or leave it basis.
Council Member Sandahl spoke in support of the project. He stated that traffic and
financing are always the two central issues in any significant development. He stated that
if the project moves forward the City will try to minimize the negative traffic impacts on the
area. He also stated that any large development will generate traffic but that retail
development generally would be the least disruptive. Mr. Sandahl stated that the
development of this property would likely generate accelerated interest in adjoining
property.
Council Member Rosenberg thanked everyone who came to the neighborhood
meeting. Ms. Rosenberg stated that she heard from those meetings that they would like
to see this project move forward. She stated that she is making a commitment to work
with everyone to make sure that the traffic issue is one that everyone can live with. Ms.
Rosenberg asked that the neighbors be patient in trying solutions to the traffic problems
and that the City, the developer and the neighbors all work together as a community to
address these traffic concerns. She stated that the sign ordinance will also be up for
review soon.
Mayor Kirsch reviewed the past successes with TIF in the LHN and ILN project
areas. He spoke to the need to upgrade the City's commercial tax base and that this
project is a new and valuable addition to the community.
M/Sandahl, S/Susag that the following resolution be adopted, that it be spread in
the resolution book and that it be made part of these minutes:
RESOLUTION NO. 8399
RESOLUTION APPROVING THE MODIFICATION TO THE REDEVELOPMENT
PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND
ESTABLISHING THE INTERCHANGE TAX INCREMENT FINANCING
DISTRICT AND APPROVING AND ADOPTING THE TAX INCREMENT
FINANCING PLAN RELATED THERETO, WITHIN THE RICHFIELD
REDEVELOPMENT PROJECT AREA
This resolution appears as Resolution No. 8399 in Resolution Book No. 66.
Motion carried 4-1. (Priebe opposed.)
Item #5CONSIDERATION OF REQUEST FOR CONDITIONAL USE PERMIT TO
ALLOW CONSTRUCTION OF 100,000 SQUARE FOOT RETAIL STORE
AND UP TO 20,000 SQUARE FEET OF ADDITIONAL RETAIL SPACE AT
1700 WEST 78TH STREET (TABLED FROM SEPTEMBER 23, 1996). C.L.
Council Meeting Minutes-7-October 28, 1996
NO. 325
City Manager Prosser reviewed Council Letter No. 325 regarding consideration of
request for conditional use permit to allow construction of 100,000 square foot retail store
and up to 20,000 square feet of additional retail space at 1700 West 78th Street.
M/Sandahl, S/Susag to approve a conditional use permit to allow construction of a
100,000 square foot retail store and up to 20,000 square feet of additional retail space at
1700 West 78th Street with the following stipulations:
1.A plan for implementing traffic calming measures within the area bounded by Penn
Avenue, 76th Street, Knox Avenue and 77th Street be prepared in conjunction with
City staff and with input from area residents.
2.Parking for bicycles be provided for on the site.
3.A sidewalk be installed along Knox Avenue connecting the site to the existing
sidewalk.
4.A sediment and erosion control plan be submitted to and approved by the City
Engineer.
5.A storm water management plan be approved by the City Engineer.
6.The final landscape plan be approved by the Community Development Director.
7.Landscaping along the freeway portion of the site be coordinated with the Community
Development Director and the Minnesota Department of Transportation.
8.A lighting plan be approved by the Community Development Director.
9.A signage plan be approved by the Community Development Director.
10.The conditional use permit not be issued until application is made for a building
permit.
Motion carried 4-1. (Priebe opposed.)
Item #6CONSIDERATION OF FIRST READING OF ORDINANCE TO REGULATE
GRANTING FRANCHISES TO OPERATE AND MAINTAIN CABLE SYSTEM
IN RICHFIELD; SETTING FORTH CONDITIONS FOR FRANCHISE AND
PROVIDING FOR REGULATION AND USE OF SYSTEM; AND
PRESCRIBING PENALTIES FOR VIOLATIONS OF PROVISIONS. C.L. NO.
326
Council Meeting Minutes-8-October 28, 1996
City Manager Prosser reviewed Council Letter No. 326 regarding consideration of
first reading of ordinance to regulate granting franchises to operate and maintain cable
system in Richfield; setting forth conditions for franchise and providing for regulation and
use of system; and prescribing penalties for violations of provisions.
M/Sandahl, S/Susag that this constitutes the first reading of the ordinance to regulate the
granting of franchises to operate and maintain a cable system in the City; setting forth
conditions accompanying the granting of a franchise; providing for use of the system; and
prescribing penalties for the violation of its provision; and schedule a public hearing and
second reading of the ordinance for November 25, 1996.
Motion carried 5-0.
Item #7CONSIDERATION OF FIRST READING OF CABLE FRANCHISE
AGREEMENT ORDINANCE. C.L. NO. 327
City Manager Prosser reviewed Council Letter No. 327 regarding consideration of
first reading of Cable Franchise Agreement Ordinance.
M/Sandahl, S/Susag that this constitutes the first reading of the Cable Television
Franchise Agreement Ordinance between the City of Richfield and KBL Cable Systems of
the Southwest Inc. and to schedule a public hearing and second reading of the ordinance
for November 25, 1996.
Motion carried 5-0.
Item #8CONSIDERATION OF COUNCIL CONFIRMATION OF MAYOR'S
APPOINTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY
COMMISSIONER FOR FIVE YEAR TERM. C.L. NO. 328
City Manager Prosser reviewed Council Letter No. 328 regarding consideration of
Council confirmation of the Mayor's appointment of Housing and Redevelopment Authority
Commissioner for five year term.
M/Kirsch, S/Sandahl to confirm the Mayor's appointment of Joan Helmberger as a
commissioner of the Housing and Redevelopment Authority for a five year term which will
expire in October 2001.
Motion carried 5-0.
Council Meeting Minutes-9-October 28, 1996
Item #9CONSIDERATION OF AUTHORIZATION OF EXPENDITURE OF 1996
GENERAL FUND BALANCE FOR MODIFICATIONS TO HEATING,
VENTILATION AND AIR CONDITIONING SYSTEM AT CITY HALL AS
RECOMMENDED BY CHASNEY ASSOCIATES IN AMOUNT OF $220,000.
C.L. NO. 329
City Manager Prosser reviewed Council Letter No. 329 regarding consideration of
authorization of expenditure of 1996 General Fund balance for modification to heating,
ventilation and air conditioning system at City Hall as recommended by Chasney
Associates in amount of $220,000.
Council Member Rosenberg asked how the costs of a lawsuit against the MAC
would affect the availability of funds for this proposed project.
Mr. Prosser stated that he did not anticipate that these funds would be needed for
the lawsuit, as other funds would be available.
Council Member Susag stated that because of the older building there are needs to
be addressed, such as the heating and air conditioning and that this project should be
done.
M/Sandahl, S/Susag to authorize the expenditure of $220,000 of 1996 General Fund
balance for modifications to the heating and air condition system at City Hall as
recommended by Chasney Associates.
Motion carried 5-0.
Item #9AAIRPORT/GOLF COURSE LEASE ISSUE
M/Susag, S/Priebe to direct the City Attorney to take the necessary steps to
prepare for the commencement of litigation, or such other actions deemed necessary by
the City Council and City Manager, challenging the actions of the Metropolitan Airports
Commission taken on October 28, 1996 to terminate the lease between the City and the
Commission for Rich Acres Golf Course and the related recreational facilities. The City
Attorney and City Manager are further directed to meet again with the City Council at its
regular meeting on November 12, 1996 to consider whether to authorize commencement
of litigation or to take other steps as may be recommended by the City Manager and the
City Attorney.
Motion carried 5-0.
Item #10AIRPORT STATUS REPORT
Council Meeting Minutes-10-October 28, 1996
City Manager Prosser stated that the City may need to do a better job of
communicating the efforts taken by the City to positively resolve a number of issues with
the MAC. Litigation was sought only after numerous other alternatives were tried.
Council Member Priebe summarized efforts by south Minneapolis to change
departures and landings to divert air traffic over north Richfield. Mr. Priebe reviewed a
map showing the number of arrivals and departures from the various runways at MSP.
Item #11LEGISLATIVE REPORT
None.
Item 12#COUNCIL DISCUSSION ITEMS
Council Member Priebe asked staff to review the traffic signal at 77th and Portland.
Council Member Rosenberg asked City Engineer Mike Eastling to phone the
person who started the petition on the traffic diverter.
Council Member Susag announced a Friends of Augsburg Library book sale.
Item #13CLAIMS AND PAYROLL
M/Rosenberg, S/Sandahl that the following claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
Checks: 21627-21687, 22233-22494$1,574,454.37
FIRSTAR BANK
Checks: 9113$29,516.53
Payroll10/17: 99493-99526, 99531-99817$402,433.11
Motion carried 5-0.
Council Meeting Minutes-11-October 28, 1996
ADJOURNMENT
The meeting was adjourned by unanimous consent at 9:17 p.m.
Date Approved:
Martin J. KirschMayor
Thomas P. FerberJames D. Prosser
City ClerkCity Manager