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11-27-00 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting November 27, 2000 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; Susan Rosenberg; Kristal Stokes; Sue Sandahl; and Russ Susag. Staff Present:Samantha Orduno, City Manager; Steven Devich, Administrative Services Director; Bruce Palmborg, Community Development Director; Mike Eastling, Public Works Director; Dan Scott, Public Safety Director; Jim Topitzhofer, Recreation Services Director; Bill Fillmore, Liquor Operations Director; Deborah Guiher, Deputy City Clerk; and Steve Bubul, City Attorney. APPROVAL OF MINUTES M/Susag, S/Rosenberg to approve the minutes of the (1) Special City Council Study Session of November 13, 2000; (2) Regular City Council Meeting of November 13, 2000; and (3) Special City Council Closed Executive Session of November 13, 2000. Motion carried 5-0. Council Meeting Minutes-2-November 27, 2000 Item #1RECOGNITION OF ELEMENTARY SCHOOL PARTICIPANTS IN LOOK ART CONTEST INTO RICHFIELD’S FUTURE Assistant to the City Manager Pam Dmytrenko introduced some of the students that participated in the Look into Richfield’s Future art contest. Over 30 students participated from grades 3-8. Thuy Duong Nguyen-Tran, a seventh grade student at Richfield Middle School, read excerpts from the essay she wrote. Mayor Kirsch thanked the students for participating in the contest and presented each of them with a blue ribbon. Item #2OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT ON THE AGENDA Council Member Sandahl read an anonymous, disturbing letter she and her husband received in regard to their daughter Jenny’s death. She also thanked residents for the love, support and comfort they gave her family. Robert Hall, 7309 Oliver Avenue, objected to time restrictions placed on public comments. Paul Nelson, 6633 16th Avenue, asked the outgoing City Council Members what their legacy would be as they leave office. Paul Hanson, 7245 18th Avenue, stated that as a landlord, he feels that the City is picking on the wrong group of people. Connie McDonald, 6400 15th Avenue, publicly thanked everyone for their support and votes in the recent City Council election. Stan Cramer, 6833 16th Avenue, after attending the airport meeting at the Thunderbird, feels that the airport seems to know everything going on but is not sharing it with the homeowners. Cindy Kosen, 7521 Xerxes Avenue, stated that trucks at the loading docks for Best Buy at the Shops at Lyndale are blocking eastbound traffic on 77th Street during the morning rush hour. City Manager Orduno stated that Public Safety would check on this situation. Council Meeting Minutes-3-November 27, 2000 Item #3 COUNCIL APPROVAL OF AGENDA M/Susag, S/Stokes to approve the agenda. Motion carried 5-0. Item #4 CONSENT CALENDAR A.Approved resolution re-appointing Ericka Hiestand to Richfield Tourism Promotion Board for a three-year term S.R. No. 292 RESOLUTION NO. 8960 RESOLUTION APPOINTING A REPRESENTATIVE TO THE BOARD OF DIRECTORS TO THE RICHFIELD TOURISM PROMOTION BOARD, INC. This resolution appears as Resolution No. 8960 in Resolution Book No. 71. B.Approved resolution in opposition to proposal before Minnesota State Legislature that would allow convenience stores, grocery stores, gas stations and other similar outlets to sell wine, wine coolers and associated products for off-premise consumption S.R. No. 293 RESOLUTION NO. 8961 RESOLUTION IN OPPOSITION TO A PROPOSAL BEFORE THE MINNESOTA STATE LEGISLATURE THAT WOULD ALLOW THE SALE OF WINE, WINE COOLERS AND ASSOCIATED PRODUCTS BY DISPENSARIES OTHER THAN DULY AUTHORIZED OFF-SALE LIQUOR STORES This resolution appears as Resolution No. 8961 in Resolution Book No. 71. C.Approved resolution authorizing subdivision waiver for 6856 Park Avenue to allow property to be divided into two lots S.R. No. 294 RESOLUTION NO. 8962 RESOLUTION AUTHORIZING A SUBDIVISION WAIVER OF PROPERTY 6856 PARK AVENUE This resolution appears as Resolution No. 8962 in Resolution Book No. 71. Council Meeting Minutes-4-November 27, 2000 D.Approved ratification of publication of November 22, 2000 public hearing notice regarding resolution and joint powers agreement relating to multifamily housing development and related housing program on behalf of Mount Olivet Rolling Acres, Inc. and issuance of revenue bonds therefor under Municipal Housing Programs Act S.R. No. 295 E.Approved towing services contract between the City and Chief’s Towing Inc., 8610 Harriet Avenue, Bloomington, MN effective 12/1/2000 to replace the Morrow’s Towing contract that is terminated due to redevelopment S.R. No. 296 M/Stokes, S/Sandahl to approve the consent calendar as amended. Motion carried 5-0. Item #5CONTINUE TO DECEMBER 11, 2000, PUBLIC HEARING AND SECOND READING OF TRANSITORY ORDINANCE ADOPTING CITY’S COMPREHENSIVE PLAN WITH AMENDMENT TO GUIDE PLAN AND CHANGING DESIGNATION OF PROPERTY IN INTERCHANGE WEST AREA FROM HIGH DENSITY SINGLE FAMILY RESIDENTIAL AND NEIGHBORHOOD COMMERCIAL TO REGIONAL COMMERCIAL/OFFICE S. R. NO. 297 City Manager Orduno stated that Staff Reports 297, 298 and 299 will be presented at one time with testimony being made following Staff Report No. 299. Item #6CONTINUE TO DECEMBER 11, 2000, PUBLIC HEARING ON PLANNED UNIT DEVELOPMENT PLAN FOR BEST BUY CAMPUS PROJECT AND SECOND READING OF ORDINANCE AMENDMENT REZONING PROPERTY BETWEEN 76TH STREET AND I-494 AND PENN AND KNOX AVENUES TO PLANNED GENERAL COMMERCIAL S.R. NO. 298 City Manager Orduno stated that Staff Reports 297, 298 and 299 will be presented at one time with testimony being made following Staff Report No. 299. Item #7CONTINUE TO DECEMBER 11, 2000, PUBLIC HEARING ON FINAL DEVELOPMENT PLAN AND CONDITIONAL US PERMIT FOR BEST BUY CAMPUS PROJECT S.R. NO. 299 City Manager Orduno stated that Staff Reports 297, 298 and 299 will be presented at one time with testimony being made following Staff Report No. 299. Council Meeting Minutes-5-November 27, 2000 Community Development Director Bruce Palmborg presented Staff Report No. 297 regarding continuing to December 11, 2000, the public hearing and second reading of a transitory ordinance adopting the City’s Comprehensive Plan with an amendment to the guide plan and changing the designation of property in the Interchange West Area from high density single family residential and neighborhood commercial to regional commercial/office. Community Development Director Palmborg presented Staff Report No. 298 regarding continuing to December 11, 2000, the public hearing on the planned unit development plan for the Best Buy Campus Project and second reading of an ordinance amendment rezoning property between 76th Street and I-494 and Penn and Knox Avenues to planned general commercial. Community Development Director Bruce Palmborg presented Staff Report No. 299 regarding continuing to December 11, 2000, the public hearing on the final development plan and conditional use permit for the Best Buy Campus Project. Tim Murnane, Opus Northwest LLC, stated that they have been working on traffic issues. He encouraged residents to look closely at the plans that will be shown by John Albers. He stated the following: x Six neighborhood meetings have been held; x Two City open houses were held at the schools; x Groundbreaking will be in April; x Move outs will be delayed until spring; and x Out of 83 property owners, only 2 have not been negotiated yet. John Albers, Opus, presented site plans and diagrams of the Best Buy Campus. Della Kolpin, Best Buy, discussed plans for a large meeting room and, potentially, an auditorium. A community room for residents is in the current plans, and they are working with security to see how this can be accomplished. Stan Cromer, 6833 16th Avenue, asked why Best Buy has chosen Richfield for their project. Mr. Murnane explained that Richfield is located close to freeways which is what Best Buy was looking for, and that Best Buy wanted a centralized location that a majority of employees live close to. Sharon Glennon, 2000 West 76th Street, stated that she doesn’t feel Best Buy is giving Richfield residents enough time to move. She also questioned the litigation with Walser. City Manager Orduno responded that nothing will be known until the outcome of the litigation. Terry Ahlstrom, 7600 Morgan Avenue, stated this is a fantastic opportunity for the City. Council Meeting Minutes-6-November 27, 2000 Deb Nordmarken, 6933 Sheridan Avenue, stated that there is too much traffic. How many patrol cars will be needed to slow down the traffic? Why can’t the residents have a referendum? John Cretzmeyer, 7604 Oliver Avenue, stated that everyone keeps saying they don’t want Best Buy, but what about the 68 homeowners that want to move? The vast majority that live in the area want to move and are in favor of the Best Buy project. Heidi Gaibor, 6915 Wentworth Avenue, stated her concerns about traffic. Why couldn’t Best Buy be located on the east side of the City? They would have access to freeways. Jim Bergin, 7627 Oliver Avenue, stated that he supports re-zoning this area. He also feels the City needs to grow and change. The traffic problem isn’t from Richfield. Every community around us is putting up big developments which is increasing traffic. Alice Larson, 7324 15th Avenue, stated that she doesn’t feel it is right to move businesses out for the Best Buy project. She is concerned about too much traffic. Marie Sedergrin, 7501 Morgan Avenue, stated that she wants to sell her house next year. Will the EIS include property values to the houses in the surrounding area? How can she go about selling her house to Best Buy employees? Robert Hall, 7309 Oliver Avenue, stated this is too big a project for the area. The City re-zones property to fit a project. He also questioned if K-mart is going to be redeveloped? City Manager Orduno stated that there are no plans at this time involving K-mart. Ed Circle, 7645 Logan Avenue, questioned if Best Buy doesn’t happen, is there another plan? Where will everyone stand if this falls through? City Manager Orduno stated that HRA has no future plans. There have been no discussions or any guarantees. Heidi Gaibor, 6915 Wentworth Avenue, responded to Mr. Hall that Vision for Lakes atLyndale does show K-Mart being remodeled. City Manager Orduno again stated there are no plans for K-Mart. Barbara Jerich, Walser General Counsel, questioned when the issues regarding Best Buy would be answered and also if Best Buy is going to purchase Galyans and use it for parking space. City Manager Orduno stated that questions that were asked formally, accurately and appropriately for the EIS will be handled December 11 at the hearing. Della Kolpin, Best Buy, stated that Best Buy did purchase the Galyans building. Best Buy has a lease with Galyans.Galyans will remain in the building and it will not be a parking lot. Council Meeting Minutes-7-November 27, 2000 Bill Larson, 7324 15th Avenue, questioned if Richfield could have a referendum to voice their opinions. City Attorney Steve Bubul stated that the City doesn’t have the legal authority to put issues to a referendum other than those authorized in the Statute. Robert Hall, 7309 Oliver Avenue, stated that the cafeteria area for Best Buy faces I- 494 and will be a hazard when the sunlight reflects off of the glass and is glaring into the drivers’ eyes. Dennis Manson, 6901 Park Avenue, questioned whether Best Buy is the right answer for Richfield. He stated that the City needs a tax base and asked what else the City has as an alternative. George Holter, 6424 Emerson Avenue, stated that he is against the Best Buy project. He doesn’t think it will be good for the City. It is too large a project for the space. M/Susag, S/Rosenberg to continue the public hearing and second reading on a transitory ordinance to adopt the City’s Comprehensive Plan with an amendment to the Guide Plan and change the designation of property in the Interchange West area from R- SFH and C-N to C-R/O to December 11, 2000; to continue the public hearing and second reading of the ordinance amendment and consideration of the planned unit development plan to December 11, 2000; and to continue the public hearing on the final development plan and conditional use permit for the Best Buy Campus project to December 11, 2000. Motion carried 5-0. Item #8PUBLIC HEARING AND CONSIDERATION OF RESOLUTION MODIFYING REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA AND MODIFYING GRAMERCY TAX INCREMENT FINANCING PLAN, URBAN VILLAGE TAX INCREMENT FINANCING PLAN, RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING PLAN, A-5 TAX INCREMENT FINANCING PLAN AND B-5 TAX INCREMENT FINANCING PLAN S.R. NO. 300 M/Susag, S/Stokes to continue a public hearing and consideration of resolution modifying Redevelopment Plan for the Richfield Redevelopment Project Area and modifying the Gramercy Tax Increment Financing Plan, Urban Village Tax Increment Financing Plan, Richfield Rediscovered 1999 Tax Increment Financing Plan, A-5 Tax Increment Financing Plan and B-5 Tax Increment Financing Plan to January 22, 2001. Motion carried 5-0. Council Meeting Minutes-8-November 27, 2000 Item #9PRESENTATION OF FINANCIAL REPORTING ANALYSIS TAX INCREMENT DISTRICTS FOR LHN, ILN AND CABA PREPARED BY HLB TAUTGES REDPATH, LTD. AND CONSIDERATION OF RESOLUTION APPROVING AND RATIFYING FINANCIAL TRANSACTIONS RELATED TO CERTAIN TAX INCREMENT FINANCING DISTRICTS S.R. NO. 301 Community Development Director Palmborg reviewed Staff Report No. 301 regarding a presentation of Financial Reporting Analysis Tax Increment Districts for LHN, ILN and CABA prepared by HLB Tautges Redpath, Ltd. and consideration of a resolution approving and ratifying financial transactions related to certain tax increment financing districts. Rob Tautges, HLB Tautges, Redpath, Ltd., reviewed the Financial Report Analysis. M/Susag, S/Kirsch 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. 8963 RESOLUTION APPROVING AND RATIFYING FINANCIAL TRANSACTION RELATED TO CERTAIN TAX INCREMENT FINANCING DISTRICTS Motion carried 5-0. This resolution appears as Resolution No. 8963 in Resolution Book No. 71. Item #10CONSIDERATION OF FIRST READING OF ORDINANCE AMENDMENT TO SECTION 1200 OF CITY CODE ALLOWING SALE AND CONSUMPTION OF LIQUOR AT RICHFIELD COMMUNITY CENTER S.R. NO. 302 Recreation Services Director Topitzhofer reviewed Staff Report No. 302 regarding the first reading of an ordinance amendment to Section 1200 of City Code allowing sale and consumption of liquor at the Richfield Community Center. Mayor Kirsch stated that this will need to be monitored to make sure no alcohol is served to minors. Council Member Sandahl stated that this request is not uncommon and there is a definite need. M/Rosenberg, S/Sandahl that this constitutes the First Reading of this ordinance; and the Public Hearing and Second Reading of the ordinance be scheduled for the January 8, 2001 City Council Meeting. Council Meeting Minutes-9-November 27, 2000 Motion carried 5-0. Item #11CONSIDERATION OF NEW RESIDENTIAL KENNEL LICENSE FOR 7312 HARRIET AVENUE; THREE DOGS S.R. NO. 303 Public Safety Director Scott reviewed Staff Report No. 303 regarding consideration of a new residential kennel license for 7312 Harriet Avenue. M/Stokes, S/Rosenberg to add a stipulation to the issuance of this license that the fence must be repaired. Council Member Susag stated that the City needs to change the name of the kennel license. The name leads residents to believe that breeding of animals is going to occur. The City should consider the name Animal License. M/Sandahl, S/Stokes to amend the previous motion and stipulation and to continue this hearing on January 8, 2001. Motion carried 5-0. Staff is to inform the applicant for the kennel license that they need to be present at the hearing. Letters should be sent to neighbors informing them of the hearing. Item #12CONSIDERATION OF REQUEST THAT MINNESOTA DEPARTMENT OF TRANSPORTATION RETAIN APPROXIMATELY 100 FEET OF NOISE WALL ON NICOLLET AVENUE BRIDGE IN CONSTRUCTION PLANS S. R. NO. 304 Public Works Director Eastling reviewed Staff Report No. 304 regarding a request that MnDOT retain approximately 100 feet of noise wall on the Nicollet Avenue bridge in the construction plans. Dave Gepner, Aesthetic Design Review Committee, would like to see the freeway be more neighbor friendly by having a railing over the bridge instead of a noise wall. Council Member Susag stated that he would prefer a noise wall even if it is only 2 DBA. People shouldn’t be driving and looking at the scenery. He is in support of a sound wall. M/Susag, S/Rosenberg request that the MnDOT retain the approximate 100 feet of noise wall on the Nicollet Avenue bridge in the construction plans. Motion carried 5-0. Council Meeting Minutes-10-November 27, 2000 Item #13CONSIDERATION OF AGREEMENT WITH SHORT, ELLIOTT, HENDRICKSON, INC. FOR DESIGN OF 76TH STREET BETWEEN I-35W AND PENN AVENUE, PENN AVENUE FROM 76TH STREET TO 77TH STREET AND OTHER ROADWAY IMPROVEMENTS NECESSARY FOR CONSTRUCTION OF BEST BUY CAMPUS S. R. NO. 305 Public Works Director Eastling reviewed Staff Report No. 305 regarding consideration of an agreement with Short, Elliott, Hendrickson, Inc. for design of 76th Street between I-35W and Penn Avenue, Penn Avenue from 76th Street to 77th Street and other roadway improvements necessary for construction of the Best Buy Campus. Council Member Rosenberg inquired if this included the entries to the Colony Apartments and Fountainhead Apartments. Mr. Eastling stated there is a possibility of a loop street on Newton Avenue and Morgan Avenue. This will be determined by the residents. M/Susag, S/Sandahl to authorize the Mayor and City Manager to enter into an agreement with SEH, Inc. for the design of 76th Street between I-35W and Penn Avenue, Penn Avenue from 76th Street to 77th Street and other roadway improvements necessary for the construction of the Best Buy Campus. Motion carried 5-0. Item #14AIRPORT STATUS REPORT City Manager Orduno and Council Member Susag will be attending the National League of Cities Congress of Cities Conference the week of December 4, presenting a resolution regarding airport noise and meeting with members from other cities that also have airport issues. Item #15HOUSING AND REDEVELOPMENT AUTHORITY REPORT City Manager Orduno stated that a Special HRA Meeting had been held this evening, and the following action occurred: x Approved first amendment to contract for private development with Best Buy x Approved adoption of Business Subsidy Agreement with Best Buy x Approved adoption of Business Subsidy Agreement with CSM Investors Council Meeting Minutes-11-November 27, 2000 x Tabled approval of modification to Tax Increment Financing Plan for Interchange West and Lyndale Gateway Tax Increment Financing District until January 22, 2001 Item #16OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT ON THE AGENDA None. Item #17COUNCIL DISCUSSION ITEMS Council Member Susag presented Kristal Stokes with the Richfield Chamber of Commerce Governmental Award 2000. Council Member Susag questioned the status of the Walser law suit. City Manager Orduno stated that the hearing is to be held on December 4, 5 and 6. Item #18CLAIMS AND PAYROLL M/Stokes, S/Sandahl that the following claims and payrolls be approved: RICHFIELD BANK & TRUST CO. INT Checks: 101706 – 101750$709,287.28 H/C102920 - 103393$993,784.55 PAYROLL 22365 - 22587$493,520.69 TOTAL$2,196,592.52 Motion carried 5-0. Council Member Sandahl thanked all of City staff and the election judges for the excellent work they did during the election. Council Meeting Minutes-12-November 27, 2000 Item #19TO CONDUCT CITY MANAGER ANNUAL PERFORMANCE EVALUATION (DEFERRED FROM NOVEMBER 13, 2000) Mayor Kirsch adjourned the meeting at 10:30 p.m. to continue with the Closed Executive Session. The Mayor noted that the Council would reconvene in the Council Chambers after the Closed Executive Session concluded. Council Member Susag stated that the City Council is very satisfied with City Manager Orduno’s job performance. M/Sandahl, S/Rosenberg to approve a 3% pay increase effective October 12, 2000 and $1500 per year towards retirement for City Manager Orduno. Motion carried 5-0. Council Member Susag stated “that many if not most of Sam Orduno’s successes are due to outstanding, dedicated highly qualified staff. It doesn’t diminish her excellent leadership, but Council felt it needed to be said.” ADJOURNMENT The meeting was adjourned by unanimous consent at 11:25 p.m. Date Approved: Martin J. Kirsch Mayor Deborah J. GuiherSamantha Orduno Deputy City ClerkCity Manager