06-22-98 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
June 22, 1998
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; Michael Sandahl; Susan Rosenberg; and
Russ Susag.
Members Not
Present:Kristal Stokes.
City Manager Prosser stated that Council Member Stokes had informed him that
due to a family commitment she would not be present at this meeting.
M/Susag, S/Sandahl to determine the absence of Council Member Stokes as an
excused absence.
Motion carried 4-0.
Staff Present :James Prosser, City Manager; Steven Devich, Administrative
Services Director; Thomas Ferber, City Clerk; Bruce Palmborg,
Community Development Director; Dan Scott, Public Safety
Director; Mike Eastling, Public Works Director; William Fillmore,
Liquor Operations Director; Frank White, Special Programs
Manager; Lil Hipp, Community Center Manager; Chris Regis,
Finance Manager; and Karen Carlson, Acting City Attorney.
Council Meeting Minutes-2-June 22, 1998
APPROVAL OF MINUTES
M/Susag, S/Sandahl to approve the minutes of the Regular City Council Meeting of
June 8, 1998.
Motion carried 4-0.
Item #1PRESENTATION OF 25TH ANNUAL GENE AND MARY JACOBSEN
OUTSTANDING CITIZEN AWARD TO NEL JOHNSON. C.L. NO. 135
Connie McDonald, 6400 15th Avenue, Chair of the Richfield Human Rights
Commission, presented the 25th Annual Gene and Mary Jacobsen Outstanding Citizen
Award to Nel Johnson, fifth grade teacher at Richfield Intermediate School in recognition
of her actions demonstrating an awareness and commitment to the attitudes and practices
that foster human understanding, tolerance and the spirit of human relations.
Nel Johnson accepted the award and discussed the value of education and sharing
it.
Mayor Kirsch and the City Council acknowledged Nel Johnson’s contributions to
the Richfield community.
Item #2RECOGNITION OF LEAGUE OF WOMEN VOTERS ESSAY CONTEST
WINNERS
Gertrude Ulrich, 7601 Aldrich Avenue, representing the Richfield League of
Women Voters (LWV), explained the LWV sponsored 4th of July Essay Contest and
theme “To Establish Justice”.
Dorothy Pearson, 7305 West 101 Street, representing the LMV, announced the
following as the 12 winners from the 132 entries in the 4th of July Essay Contest:
B.J. SantosGabe Okon
Tiffany DouarnynneyAndy Berg
Mandy SchwennAlison Drummond
Anna BishopMaddie Baird
Karsta SunneThuy-Duong Nguyen-Tran
Elliot JohnsonBailey Pratt
Council Meeting Minutes-3-June 22, 1998
Item #3PRESENTATION OF PROCLAMATION DESIGNATING JULY 1, 1998 AS
WOMEN OF TODAY FOUNDER’S DAY IN RICHFIELD
Council Member Rosenberg read and presented a proclamation designating July 1,
1998 as Women of Today Founder’s Day in the City of Richfield to Connie McDonald
representing the Richfield Chapter of the Women of Today.
Connie McDonald, 6400 15th Avenue, invited the public to join the Richfield
Chapter of the Women of Today on July 1 to picnic in the park at Veterans Memorial Park
to celebrate Founder’s Day.
Item #4RECOGNITION OF REPRESENTATIVE EDWINA GARCIA FOR DEDICATED
SERVICE TO RICHFIELD RESIDENTS AS FOUR-TERM MEMBER OF
MINNESOTA HOUSE OF REPRESENTATIVES
MayorKirsch read and presented a plaque to State Representative Edwina Garcia
recognizing her dedicated service to the residents of Richfield during her four terms in the
House of Representatives.
State Representative Edwina Garcia acknowledged her family, City Council, City
staff, and the residents of Richfield for their support and for the honor of representing
them. She discussed the importance of tax increment financing to the Richfield
community and its future.
Item #5RECOGNITION OF REPRESENTATIVE MARK MAHON FOR DEDICATED
SERVICE TO RICHFIELD RESIDENTS AS THREE-TERM MEMBER OF
MINNESOTA HOUSE OF REPRESENTATIVES
Mayor Kirsch read and presented a plaque to State Representative Mark Mahon
recognizing his dedicated service to the residents of Richfield during his three terms in
the House of the House of Representatives.
State Representative Mahon thanked and acknowledged the City staff and
residents for their support.
Item #6DISCUSSION WITH LOCAL LEGISLATORS REGARDING UPDATE AND
STATUS OF CITY OF RICHFIELD 1998 LEGISLATIVE INITIATIVES
Council Meeting Minutes-4-June 22, 1998
District 40 State Senator Dave Johnson reviewed and discussed the following
legislative issues:
x
Passage of $2 million in state funding for ballfield replacement.
x
Defeat of pension bill which would have been detrimental to Richfield and
Bloomington
District 63B State Representative Edwina Garcia reviewed and discussed the
following legislative issues:
x
Passage of $2 million in state funding for ballfield replacement.
x
Airport noise mitigation.
x
Need for tax increment financing for redevelopment.
x
Uniqueness of Richfield in its burden being next to an international airport.
x
Need for equitable representation on the Metropolitan Airports Commission.
District 40A State Representative Mark Mahon reviewed and discussed the
following legislative issues:
x
Passage of $2 million in state funding for ballfield replacement.
x
Airport noise mitigation.
x
Metro Joint Public Safety Training Center.
x
Defeat of pension bill which would have been detrimental to Richfield and
Bloomington.
Sara Merz was present to represent District 63 State Senator Jane Ranum.
Kathy Hahne, lobbyist, stated it had been a pleasure to represent Richfield
regarding legislative issues.
Council Member Susag noted that the legislators represent districts which
encompass more than just Richfield and acknowledged their efforts on behalf of Richfield.
Mayor Kirsch acknowledged the team effort on legislative initiatives.
Item #7PRESENTATION OF PROCLAMATION DESIGNATING JULY AS NATIONAL
PARK AND RECREATION MONTH IN RICHFIELD
Council Member Susag read and presented a proclamation to Special Programs
Manager Frank White designating July as National Park and Recreation Month in the City
of Richfield.
Council Meeting Minutes-5-June 22, 1998
Item #8PRESENTATION OF PROCLAMATION DESIGNATING JULY 12-18, 1998 AS
NATIONAL THERAPEUTIC RECREATION WEEK IN RICHFIELD
Council Member Sandahl read and presented a proclamation to Community Center
Manager Lil Hipp designating July 12-18, 1998 as National Therapeutic Recreation Week
in the City of Richfield.
Item #9OPPORTUNITY FOR PERSONS TO ADDRESS THE CITY COUNCIL ON
ANY ITEM NOT LISTED ON THE AGENDA.
Gordon Anderson, 7501 Elliot Avenue, discussed his objections to zero based tax
increment financing legislation proposals.
Item #10COUNCIL APPROVAL OF AGENDA
M/Sandahl, S/Susag to approve the agenda.
Motion carried 4-0.
Item #11 CONSENT CALENDAR
A.APPROVED RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT WITH
HENNEPIN COUNTY FOR PARTICIPATION IN RECONSTRUCTION OF
RETAINING WALLS. C.L. 136
RESOLUTION NO. 8578
RESOLUTION AUTHORIZING EXECUTION OF AGREEMENT WITH HENNEPIN
COUNTY FOR PARTICIPATION IN RECONSTRUCTION OF RETAINING WALLS
This resolution appears as Resolution No. 8578 in Resolution Book No. 67.
B.APPROVED AWARD OF CONTRACT TO DMJ CORPORATION FOR
EXPANSION OF CITY HALL/HEREDIA PARK PARKING LOT IN AMOUNT OF
$106,860.60 C.L. 137
Council Meeting Minutes-6-June 22, 1998
C.APPROVED TEMPORARY ON-SALE 3.2 PERCENT MALT LIQUOR LICENSE
WITH FEE WAIVER FOR JULY 4, 1998 FOR MINNEAPOLIS-RICHFIELD
AMERICAN LEGION POST 435, 6501 PORTLAND AVENUE C.L. 138
D.APPROVED TEMPORARY ON-SALE 3.2 PERCENT MALT LIQUOR LICENSE
WITH FEE WAIVER FOR JULY 3, 1998 FOR FRED BABCOCK V.F.W. POST
5555, 710 LAKESHORE DRIVE C.L. 139
E.APPROVED COMMUNITY CELEBRATION EVENT LICENSE WITH FEE WAIVER
FOR FOURTH OF JULY COMMITTEE FOR EVENTS SCHEDULED ON JULY 4,
1998 C.L. 140
M/Sandahl, S/Susag to approve the consent calendar.
Motion carried 4-0.
Item #12PUBLIC HEARING REGARDING ISSUANCE OF WINE AND ON-SALE 3.2
PERCENT MALT LIQUOR LICENSE FOR KETSANA’S THAI
RESTAURANT, 7545 LYNDALE AVENUE. C.L. NO. 141
City Manager Prosser reviewed Council Letter No. 141 regarding the application of
Scott and Ketsana Bechtel for On-Sale Wine and 3.2 Malt Liquor Licenses for Ketsana’s
Thai Restaurant, 7545 Lyndale Avenue.
M/Sandahl, S/Susag to close the public hearing.
Motion carried 4-0.
M/Susag, S/Sandahl to approve granting a 1998 On-Sale Wine and 3.2 Malt Liquor
Licenses to Ketsana’s Thai Restaurant, 7545 Lyndale Avenue, with the following
stipulation:
1.That the requirements are met in Resolution No. 7380.
Motion carried 4-0.
Item #13PUBLIC HEARING AND CONSIDERATION OF RESOLUTION REGARDING
APPROVAL OF MODIFICATION TO RICHFIELD REDEVELOPMENT
PROJECT AREA REDEVELOPMENT PLAN; ESTABLISHMENT OF
GRAMERCY TAX INCREMENT FINANCING DISTRICT; AND ADOPTION
OF GRAMERCY TAX INCREMENT FINANCING PLAN. C.L. NO. 142
Council Meeting Minutes-7-June 22, 1998
City Manager Prosser reviewed Council Letter No. 142 regarding consideration of a
modification to the Richfield Redevelopment Project Area Redevelopment Plan,
establishment of the Gramercy Tax Increment Financing District, and the Gramercy Tax
Increment Financing Plan. He reviewed the Gramercy Park Cooperative proposal to build
a 16 story, 218 unit limited equity cooperative for seniors and a new 8,000 square foot
VFW facility on the current VFW property and an adjacent parcel. He described a
concept for a Phase II redevelopment in the quadrant which might include:
x
approximately 44,000 square feet of commercial space including a Lyndale
Hardware store (existing or new);
x
approximately 62,000 square feet of medical clinic and office; and
x
a housing component, with a variety of unit types.
Michael W. Conlan, President of the Gramercy Corporation, reviewed the status of
the proposed Gramercy Park Cooperative project and indicated 140 units have been
reserved so far.
Michelle Thompson, 6908 Wentworth Avenue, stated concern about the impact of
traffic resulting from the development.
Mr. Conlan stated traffic studies indicated that senior housing projects have less
traffic impact than even single family housing, especially on the peak rush hours. He
stated that overall this type of development is the most benign type regarding traffic
impact.
Gordon Anderson, 7501 Elliot Avenue, stated he had attended a recent HRA
meeting on the status of the Gramercy Park project and had questions regarding the
amount of T.I.F. financing and the “but for” test requirement.
Sid Inman, Ehlers & Associates, Inc., explained how the proposal met the “but for”
conditions of increased value and the practice of the HRA to require developers to prove
why they need T.I.F. assistance. He discussed the impact of varying levels of T.I.F.
assistance on the amount of payments for the purchases of the cooperative units.
Council Member Susag asked if it was unusual for a housing development to
receive T.I.F.
Mr. Inman stated that there has been a significant amount of housing projects in the
state that utilized T.I.F. and it was not unusual to use it to reduce rent. He stated there
were few comparables for a cooperative.
Larry Wozniczka, 6744 Wentworth Avenue, asked about the redevelopment district
boundaries.
Mr. Inman described the Richfield Redevelopment Project Area and the Gramercy
Tax Increment Financing District.
Council Meeting Minutes-8-June 22, 1998
Mr. Wozniczka asked questions about the status of parcels that are currently in the
LHN which will now be in the Gramercy District and why the Gramercy District
encompasses more parcels than are needed for the Gramercy Park Project.
Mr. Inman described the proposed elimination of the four parcels from the LHN
District and the tax capacity impact. He stated that the parcels not used for Gramercy
Park are anticipated to be redeveloped in the future.
Mr. Wozniczka asked questions about the impact of the Gramercy Park Project on
the City’s operating budget related to providing City services.
Community Development Director Palmborg discussed the possible increase in
medical calls related to a senior high rise.
Council Member Susag discussed the code and fire protection issues related to a
high rise.
Community Development Director Palmborg indicated the internal fire protection
system and code requirements provided a high standard of protection than other types of
structures.
Mr. Woznizcka asked about the relative success of residential versus commercial
T.I.F. districts.
Mr. Inman described the Gramercy T.I.F. District proposal as a pay as you go tax
increment and discussed the breakdown of the proposed tax increment categories.
Mr. Wozniczka asked about the 5% local contribution payment to the project.
Mr. Inman stated that the HRA must decide what will be used for the local match
contribution from potential sources such as public ROW improvements, land, and
consultant expenditures. He stated the district will participate in fiscal disparities.
Mr. Wozniczka questioned the affordability of the housing based on literature from
Gramercy about the proposed cooperative.
Mr. Conlan reviewed the cooperative concept and costs. He stated it met the FHA
moderate income program. He indicated that after the deduction for mortgage interest
and taxes most people find the cost below a rental unit. He stated over 40% of those
committed are currently Richfield residents. He stated that the response and market
indicate a high interest in the project.
Mr. Wozniczka stated concern that his taxes had gone up more than the rate of
inflation and that T.I.F. may be the reason.
Mr. Inman stated that the LHN T.I.F. district would end in two years and offset any
potential increase.
Council Meeting Minutes-9-June 22, 1998
Gordon Anderson, 7501 Elliot Avenue, asked if the City intended to purchase the
two lots to the west of the VFW thus taking them off the tax roles and negatively impacting
taxing jurisdictions such as Hennepin County.
Community Development Director Palmborg stated that there are no plans for the
City or HRA to purchase those parcels. He indicated that it was anticipated a developer
would be likely to purchase them for redevelopment.
M/Susag, S/Sandahl to close the public hearing.
Motion carried 4-0.
Council Member Rosenberg stated she did not believe that T.I.F. should be used to
subsidize housing.
Council Member Sandahl stated that this was a classic case where T.I.F. is
appropriate as evidenced by the many years and the difficulty in getting this area
redeveloped.
Mayor Kirsch agreed and noted that many residents have been asking for this type
of housing to be available in Richfield.
M/Susag, 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 NO. 8579
RESOLUTION MODIFYING THE RICHFIELD REDEVELOPMENT PROJECT AREA
AND ADOPTING THE MODIFICATION TO THE REDEVELOPMENT PLAN
THERETO; AND ESTABLISHING WITHIN REDEVELOPMENT PROJECT AREA THE
GRAMERCY TAX INCREMENT FINANCING DISTRICT AND ADOPTING THE
RELATED TAX INCREMENT FINANCING PLAN THERETO
Motion carried 3-1. (Rosenberg opposed) This resolution appears as Resolution
No. 8579 in Resolution Book No. 68.
M/Susag, 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 NO. 8580
RESOLUTION AUTHORIZING THE
ELIMINATION OF PARCELS FROM THE LHN TAX INCREMENT FINANCING DISTRICT
WITHIN THE CITY OF RICHFIELD
Motion carried 3-1. (Rosenberg opposed) This resolution appears as Resolution
No. 8580 in Resolution Book No. 68.
Council Meeting Minutes-10-June 22, 1998
Item #14PUBLIC HEARING AND CONSIDERATION OF RESOLUTION
REGARDING CONDITIONAL USE PERMIT TO ALLOW CONSTRUCTION
OF RELIGIOUS FACILITY AT 609 WEST 74TH STREET. C.L. NO. 143
City Manager Prosser reviewed Council Letter No. 143 regarding the request of
Minneapolis Meeting Rooms, Inc. for a conditional use permit to allow construction of a
religious facility at 609 West 74th Street.
M/Sandahl, S/Susag to close the public hearing.
Motion carried 4-0.
M/Sandahl, S/Rosenberg 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. 8581
RESOLUTION FOR APPROVING A CONDITIONAL USE PERMIT
609 West 74th Street
Motion carried 4-0. This resolution appears as Resolution No. 8581 in Resolution
Book No. 68.
Item #15CONSIDERATION OF ACCEPTANCE OF CITY OF RICHFIELD
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR
ENDED DECEMBER 31, 1997. C.L. NO. 144
City Manager Prosser reviewed Council Letter No. 144 regarding presentation of
the City’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
December 31, 1997. He stated that an in-depth presentation of the 1997 financial
information will be made by the City’s auditors, Deloitte & Touche, at the City Council
Study Session on July 6, 1998.
M/Sandahl, S/Susag to accept receipt of the Comprehensive Annual Financial
Report of the City for the fiscal year ended December 31, 1997.
Motion carried 4-0.
Item #16AIRPORT STATUS REPORT
Council Meeting Minutes-11-June 22, 1998
City Manager Prosser discussed a letter from Pierson M. Grieve, Chairman of the
Metropolitan Airports Commission, to Mayor Kirsch proposing that a joint committee
composed of two MAC Commissioners, two elected officials of the City of Richfield, and
two members of the Metropolitan Council be established to review the issues related to
noise impacts and to develop a mutually acceptable mitigation proposal.
Council Member Sandahl stated that if the MAC has staff and legal support at the
meetings, then the City should also have legal and staff support present so there is a level
playing field. He suggested that Council Member Stokes be one of the City
representatives.
Council Member Rosenberg stated she would like to see one of the residents from
the CARE TEAM be one of the City’s representatives.
Council Member Susag stated that the proposal requested two elected officials as
representatives.
Mayor Kirsch asked if these would be open meetings.
City Manager Prosser stated that he assumed they would be open to the public but
would ask the City Attorney to look at that issue. He stated the CARE TEAM could attend
the meetings assuming they are open.
Council Member Susag stated agreement with Council Member Sandahl’s
suggestion for designating Council Member Stokes as one representative because she
represents the east ward. He suggested the other representative be an at-large elected
official such as the Mayor.
Council Member Sandahl volunteered to be the alternate.
City Manager Prosser suggested that a timeframe be requested for the discussion
such as initiating the process within two weeks and concluding within eight weeks.
Council Member Sandahl stated support for a short term resolution of the issues.
Bill Duffee, 6515 18th Avenue, Co-Chair of the CARE TEAM, suggested that the
City Council consider a counter proposal to the MAC to add a CARE TEAM member to the
committee.
M/Sandahl, S/Susag to appoint Council Member Stokes and Mayor Kirsch as the
elected officials to represent the City of Richfield on the proposed joint MAC, Metropolitan
Council, and City Committee to review the issues related to noise impacts and
development of a mutually acceptable mitigation proposals; that the Mayor write a letter to
MAC Chair Pierson M. Grieve to inform him of the City’s agreement to participate; and, to
request that the first meeting be scheduled within two weeks and that the committee
conclude its work within eight weeks.
Motion carried 3-1. (Rosenberg opposed)
City Manager Prosser discussed the status of the following airport issues:
Council Meeting Minutes-12-June 22, 1998
x
Contact with the Governor’s office regarding airport noise mitigation.
x
CARE TEAM contact with the Metropolitan Council Transportation Committee
x
Contact with the MPCA, DNR, EQB, and Met Council staff on airport impacts
and mitigation issues.
x
Raising public and media awareness regarding airport impact and mitigation
issues.
Mayor Kirsch encouraged citizens to contact the candidates for Governor regarding
their position on airport issues.
Item #17LEGISLATIVE REPORT
None.
Item #18COUNCIL DISCUSSION ITEMS
Council Member Sandahl questioned the status of repairs to the exterior panels of
the Minnesota School of Business office building.
City Manager Prosser stated that the City had contacted the owners of the building
who indicated repairs will occur. He stated staff would monitor and inform the Council on
the status of this issue.
Council Member Rosenberg reported on the June 16, 1998 meeting of the Richfield
Lake Neighborhood Association. She suggested that the City Council look at eliminating
this neighborhood as an area of redevelopment in the Richfield Lake redevelopment plan.
Mayor Kirsch made the following announcement:
The Maintenance Facility Citizens Task Force was created by the City Council to
review space needs and to make recommendations related to selection of a site for a new
maintenance facility. The Task Force has scheduled public information and input
meetings. Residents are encouraged to attend one or both of these meetings:
3:00 p.m. - 7:00 p.m. on Wednesday, July 15
at Wood Lake Nature Center, 735 Lake Shore Drive
3:00 p.m. - 7:00 p.m. on Thursday, July 16
at City Hall, 6700 Portland Avenue
Council Meeting Minutes-13-June 22, 1998
Mayor Kirsch reminded residents to look for the July issue of the Your City
newsletter and also encouraged residents to participate in the Fourth of July Community
Celebration.
Item #19CLAIMS AND PAYROLL
M/Susag, S/Sandahl that the following claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
Checks: 75372-75388$21,185.96
H/C: 77802-78168$831,354.52
Payroll: 10048-10386$438,385.42
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 9:11 p.m.
Date Approved:
Martin J. KirschMayor
Thomas P. FerberJames D. Prosser
City ClerkCity Manager