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01-22-01 Regular CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting January 22, 2001 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; John Enger; Sue Sandahl; and Gertrude Ulrich. Staff Present:Steven Devich, Acting City Manager; Mike Eastling, Public Works Director; Dan Scott, Public Safety Director; Bruce Palmborg, Community Development Director; Cheryl Krumholz, Recording Secretary; and Corrine Thomson, City Attorney. APPROVAL OF MINUTES M/Ulrich, S/Rosenberg to approve the minutes of the (1) Special Joint Civil Service Commission/City Council Meeting of January 4, 2001; (2) Special City Council Meeting of January 5, 2001; (3) Regular City Council Meeting of January 8, 2001; (4) Special City Council Meeting of January 10, 2001; and (5) Special City Council Meeting of January 11, 2001. Motion carried 4-1. (Enger opposed.) Council Meeting Minutes-2-January 22, 2001 Council Member Enger stated he wanted the goals established at the January 5, 2001 Special City Council Meeting included in the minutes. Acting City Manager Devich stated the goals are not in final form and will be provided to the City Council at a later date. Item #1UPDATE ON PROPOSED CROSSTOWN/I-35W ROAD IMPROVEMENTS Public Works Director Eastling provided an update on the proposed Crosstown/I- 35W road improvements. The update included: x Review of the history of the I-35W improvements and the alternatives x Staging of the proposed expansion, including lane closures during construction x Review of design and capacity needs x Traffic flow after expansion is complete Council Member Sandahl asked how many homes are anticipated to be lost in Richfield due to the expansion. Mr. Eastling responded there are seven homes total: two have already been taken on 66th Street, and five are planned along the corridor. Council Member Rosenberg expressed disappointment that there is not as much traffic congestion relief for 66th Street as anticipated. Mr. Eastling stated there will be some increased capacity on Crosstown/I-35W which should improve safety and decrease congestion on 66th Street. Council Member Rosenberg asked why an additional lane was not proposed for north I-35W. Public Works Director Eastling stated this was the alternative preferred by Minneapolis. Tom O’Keefe, MnDOT Area Manager, reviewed the existing lane capacities and stated improvements will include five lanes and no lane weaving. Council Member Enger asked how many houses will be lost in Minneapolis if an additional lane is built. Mayor Kirsch stated that Minneapolis has balked at helping with straightening the road. TomO’Keefe, MnDOT Area Manager, stated that answers to the City Council’s questionswill be provided at a later date. Council Meeting Minutes-3-January 22, 2001 Item #2OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT ON THE AGENDA Deb Nordmarken, 6933 Sheridan Avenue, reported on the referendum and initiative petition drive efforts related to the Best Buy development. She also commented on inaccurate information in a Best Buy ad published in the Richfield Sun Current. Carl Cornell, 6615 Lake Shore Drive #807, expressed issues and concerns regarding overcrowding with the City Bella project. Robert Hall, 7309 Oliver Avenue, stated concerns about the City Council making up their mind on issues prior to hearing public comment at public hearings. Mr. Hall also stated concern about the City Manager’s comments in the Richfield Sun Current regarding the City’s development along Cedar Avenue. Sean Kirk, 7626 Logan Avenue, stated he is a tenant who is building his own business and expressed concern that one property not moving forward has placed the entire Best Buy project and lives on hold. Paul Nelson, 6633 16th Avenue, asked if the City had any more plans to construct affordable housing. Council Member Sandahl responded that she and Council Member Rosenberg served on the Affordable Housing Task Force and are committed to ensuring that there be an affordable housing component in every development. Gerald Millette, 6406 16th Avenue, asked when his home would be bought out due to airport expansion. He did not support improvements at Taft Park if it meant not pursing a buyout of homes affected by airport noise. Mayor Kirsch stated that the City is working with the Legislature to secure more funding. DuaneSietsma, 6724 Vincent Avenue, stated support of the Best Buy development. He stated Walser and the citizens should be listened to. Item #3 COUNCIL APPROVAL OF AGENDA M/Sandahl, S/Rosenberg to approve the agenda as amended with the Council discussion to follow the Consent Calendar. Motion carried 5-0. Council Meeting Minutes-4-January 22, 2001 Item #4 CONSENT CALENDAR A.Approved purchase of five new squad cars from Superior Ford, Inc. in amount of $105,755 S.R. No. 24 B.Approved temporary 3.2 percent malt liquor, itinerant place of amusement, itinerant food and public dance licenses with fees waived for Church of the Assumption, 305 East 77th Street, annual Sno-Ball family event on January 27, 2001 S.R. No. 25 C.Approved resolution pertaining to filing of Pay Equity Report with Minnesota Department of Employee Relations S.R. No. 26 RESOLUTION NO. 9002 RESOLUTION PERTAINING TO FILING OF THE PAY EQUITY REPORT WITH THE MINNESOTA DEPARTMENT OF EMPLOYEE RELATIONS This resolution appears as Resolution No. 9002 in Resolution Book No. 72. M/Rosenberg, S/Sandahl to approve the consent calendar. Motion carried 5-0. COUNCIL DISCUSSION ITEMS Council Member Sandahl made the following announcements: x 10th annual Remodeling Fair; January 27, 2001; 9:30 a.m. – 3:30 p.m.; Richfield High School x Winter Family Fun Fest; February 3, 2001; noon – 4:00 p.m.; Augsburg Park There will be a park bench dedicated to her daughter Jenny, at Augsburg Park on February 3, at 1:00 p.m. Item #5CONSIDERATION OF APPOINTMENTS TO FILL EXPIRING OR VACANT TERMS ON CITY’S ADVISORY COMMISSIONS S.R. NO. 27 Mayor Kirsch stated the City Council held special meetings on January 10, 11 and 22 to interview 46 persons interested in serving on the City’s advisory commissions. Council Meeting Minutes-5-January 22, 2001 Mayor Pro Tempore Sandahl read the following appointments to fill expiring or vacant terms: ADVISORY BOARD OF HEALTH NameTerm Expires Edith SteinJanuary 31, 2002 SanoraLu BelkengrenJanuary 31, 2004 Katherine BreeggmanJanuary 31, 2004 Sarah ParsonJanuary 31, 2004 CIVIL SERVICE COMMISSION NameTerm Expires John HamiltonJanuary 31, 2004 COMMUNITY SERVICES COMMISSION NameTerm Expires Kari JohnsonJanuary 31, 2002 William SharkeyJanuary 31, 2004 Rick JabsJanuary 31, 2004 Gary NessJanuary 31, 2004 HUMAN RIGHTS COMMISSION NameTerm Expires Michele JohnsonJanuary 31, 2003 Barbara WhitemanJanuary 31, 2004 John Ekholm, Jr.January 31, 2004 Alvin MooreJanuary 31, 2004 Dean KarauJanuary 31, 2004 PLANNING COMMISSION NameTerm Expires John BjostadJanuary 31, 2004 Mark TolvstadJanuary 31, 2004 Connie McDonaldJanuary 31, 2004 FRIENDSHIP CITY COMMISSION NameTerm Expires Julie VoglJanuary 31, 2002 Jennifer SamountryJanuary 31, 2003 Carol MortensonJanuary 31, 2004 Jerome PettisJanuary 31, 2004 Kris DahlJanuary 31, 2004 Council Meeting Minutes-6-January 22, 2001 Council Member Enger stated he did not agree with all of the appointments because some were made on the basis of color and gender. He stated he thinks the City lost a good number of people who should have been given better consideration and they won’t reapply. Council Member Rosenberg stated that all applicants were invited to participate in Richfield 2020. She stated the judgement was based on a fair representation. M/Sandahl, S/Rosenberg to appoint persons to fill the expiring or vacant terms on the City advisory commissions. Motion carried 4-1. (Enger opposed.) Item #6CONTINUATION OF NOVEMBER 27, 2000 PUBLIC HEARING AND CONSIDERATION OF RESOLUTION MODIFYING REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA AND MODIFYING TAX INCREMENT FINANCING PLANS FOR GRAMERCY TAX INCREMENT FINANCING DISTRICT, URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT, RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT, A-5 TAX INCREMENT FINANCING DISTRICT, AND B-5 TAX INCREMENT FINANCING DISTRICT S.R. NO. 28 Community Development Director Palmborg reviewed Staff Report No. 28 regarding a resolution modifying a redevelopment plan for Richfield Redevelopment Project Area and modifying tax increment financing plans for Gramercy Tax Increment Financing District, Urban Village Tax Increment Financing District, Richfield Rediscovered 1999 Tax Increment Financing District, A-5 Tax Increment Financing District and B-5 Tax Increment Financing District. M/Rosenberg, S/Ulrich to close the hearing. Motion carried 5-0. M/Ulrich, 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. 9003 RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND MODIFYING THE TAX INCREMENT FINANCING PLANS FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT; RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT; A-5 TAX INCREMENT FINANCING DISTRICT; AND B-5 TAX INCREMENT FINANCING DISTRICT Council Meeting Minutes-7-January 22, 2001 Motion carried 5-0. This resolution appears as Resolution No. 9003 in Resolution Book No. 72. Item #7PUBLIC HEARING AND CONSIDERATION OF RESOLUTION ADOPTING MODIFICATION TO TAX INCREMENT FINANCING PLAN FOR INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT S.R. NO. 29 Mayor Kirsch requested that the vote on this item be divided into two separate actions since a Council Member may possibly be involved in the Lyndale Gateway portion, but wishes to participate in the Interchange West vote. Community Development Director Palmborg reviewed Staff Report No. 29 regarding a resolution adopting modification to Tax Increment Financing Plan for Interchange West and Lyndale Gateway Tax Increment Financing District. Jim Bergin, 7627 Oliver Avenue, spoke in support of the Best Buy development and the modifications to the TIF Plan. Brad Gunn, Leonard, Street and Deinard, attorney representing Walser, confirmed distribution of a letter to the Council regarding objections to the proposed amendment to the Interchange West and Lyndale Gateway TIF District and Plan. Mr. Gunn asked questions regarding the changes to the modified TIF Plan. Sid Inman, Ehlers & Associates, responded to the questions. Mr. Gunn asked when the modifications were made available. He stated he had not seen them previously and did not know it was available. Mr. Gunn requested action on this item be continued for two weeks to provide an opportunity to review the information. Sid Inman, Ehlers & Associates, reviewed the notification timelines and requirements. Terry Ahlstrom, 7600 Morgan Avenue, stated he did not support an extension on taking action on the modification. Deb Nordmarken, 6933 Sheridan Avenue, asked how the schools would benefit right away from the Best Buy project and stated she supported a two-week extension. She asked questions regarding estimated property taxes. Sid Inman, Ehlers & Associates, reviewed the current school district operation referenda. He explained the property tax estimates are the best ones based upon the law. The estimates are refined as the project is refined. Council Meeting Minutes-8-January 22, 2001 Roger Wohschlager, 7610 Oliver Avenue and 7609 Morgan Avenue, stated support for a budget that moves forward with best estimates. There are other intangible benefits other than the dollar value. Gerald Millette, 6406 16th Avenue, asked if part of City taxes will pay for the Penn Avenue bridge work. Sid Inman, Ehlers & Associates, responded that tax increment from the district, Best Buy and MnDOT would fund the bridge. No local property taxes would be used. Cathy Bergin, 7627 Oliver Avenue, stated there have been enough delays. Mike Triggs, 7639 Penn Avenue, stated the Best Buy project is beneficial to the majority of people and businesses in Richfield. Ed Cirkl, 7639 Logan Avenue, stated that it’s time to move on. Dennis Manson, 13012 Welcome Lane, Burnsville, (formally 6901 Park Avenue), asked that if Best Buy doesn’t work out, was there something to replace it. Tom Rublein, 2016 West 64th Street, reported on the upcoming school district deficit. Residents need to have faith that redevelopment projects will be beneficial to the City. JanellCirkl, 7639 Logan Avenue, spoke in support of the Best Buy project and did not support a two-week extension on taking action. Larry Wozniczka, 6744 Wentworth Avenue, asked several financial questions. Sid Inman, Ehlers & Associates, responded to the financial questions that had been asked. Cindy Triggs, 7639 Penn Avenue, stated she would like to see the project move forward. She asked how the Housing Fund money would be used. Community Development Director Palmborg responded that the funds could be used to support the Richfield Rediscovered Program for new and current initiatives. Council Member Rosenberg stated that the Richfield Community Human Services Planning Council would have input regarding the use of the Housing Fund money within Richfield. Robert Hall, 7309 Oliver Avenue, commented on the payment of taxes by Best Buy. M/Ulrich, S/Sandahl to close the public hearing. Motion carried 5-0. City Attorney Thomson responded to the Mayor’s earlier request stating that none of the modifications proposed would have any impact on Lyndale Gateway area so the Council Member would have no financial interest and be precluded from voting. Council Meeting Minutes-9-January 22, 2001 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. 9004 RESOLUTION ADOPTING THE MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE INTERCHANGE WEST AND LYNDALE GATEWAY TAX INCREMENT FINANCING DISTRICT Council Member Enger asked about past increases in commercial property values in this area. Sid Inman, Ehlers & Associates, answered that this area declined 2 – 3% on average. Council Member Enger asked if there was a bridge bond guarantee from MnDOT. Mr. Inman responded that MnDOT will provide a letter stating they will guarantee to pay off the bonds. Council Member Enger asked fiscal disparities, contract for private development and bridge bond questions. Mr. Inman responded to the fiscal disparities questions stating the formula used fluctuates every year depending on the amount of construction in the seven county metro area. Community Development Director Palmborg stated the contract is between the HRA and Best Buy. The Council does not need to approve it. Mr. Palmborg also stated that the cost overages on the bridge estimates are currently in discussion with MnDOT and the City. Council Member Enger asked Council Member Sandahl to withdraw the motion so he could make a new one. City Attorney Thomson stated the motion remains on the floor until acted upon or withdrawn. Council Member Rosenberg expressed concern about the tone of what’s happening in the community and understands emotions are running high. We need to agree to disagree and maintain a sense of respect. Council Member Sandahl stands by her motion. The development will benefit the entire City long-term and supports the project. Council Member Ulrich stated we need to look to the good of the community. Mayor Kirsch stated support of the project and we need to move the project forward. Council Meeting Minutes-10-January 22, 2001 Council Member Enger stated that if there was any possibility that the City did not properly disseminate information, there should be an opportunity to examine documents. It’s unfair to withhold information from any interested party and supported the two-week extension. Mr. Enger asked Ehlers & Associates to prepare a new financial statement that would be easy for the lay person to understand. Sid Inman, Ehlers & Associates, responded that Mr. Gunn asked him directly at the first hearing in early December if the public hearing was scheduled for tonight. At the most recent hearing, this information was contained in his affidavit plus most documents were provided earlier as part of the disclosure. A number of discussions both on and off the record occurred of when this public hearing was taking place. Mr. Inman stated that the current financial statement format is the standard one used, but he will revise the format as the Council wishes. City Attorney Thomson responded that all public notices required by law have been given. She also stated that all this information was directly made available to the Walser Group in the context of the court proceedings in early December. Mayor Kirsch stated that all of the documents are public information. Motion carried 4-1. (Enger opposed.) This resolution appears as Resolution No. 9004 in Resolution Book No. 72. Item #8CONSIDERATION OF RESOLUTION AUTHORIZING ACQUISITION OF 6444 CLINTON AVENUE AND FIRST READING OF TRANSITORY ORDINANCE AUTHORIZING SALE OF PROPERTY TO HRA FOR REHABILITATION S.R. NO. 30 Community Development Director Palmborg reviewed Staff Report No. 30 regarding a resolution authorizing acquisition of 6444 Clinton Avenue and first reading of a transitory ordinance authorizing sale of property to HRA for rehabilitation. Council Member Enger asked about low-income guidelines and mortgage guidelines. Community Development Director Palmborg reviewed the New Home Program. M/Ulrich, 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. 9005 RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY LOCATED AT 6444 CLINTON AVENUE SOUTH Council Meeting Minutes-11-January 22, 2001 Motion carried 5-0. This resolution appears as Resolution No. 9005 in Resolution Book No. 72. Item #9CONSIDERATION OF NEW RESIDENTIAL KENNEL LICENSE FOR 7039 FIFTH AVENUE; FOUR CATS S.R. NO. 31 Public Safety Director Scott reviewed Staff Report No. 31 regarding a new residential kennel license for Patricia Jallan, 7039 Fifth Avenue, for four cats. Mr. Scott stated the applicant was notified of the meeting and asked to attend, but was not present. Council Member Enger asked if the issuance of a license could be conditional if the home was considered uninhabitable in the future. City Attorney Thomson responded that licenses can be revoked if uncleanliness is related to keeping of the animals. If no relation to animals, there would be no grounds to revoke the license. M/Enger, S/Rosenberg to approve a request for a new residential kennel license for Patricia Jallen, 7039 Fifth Avenue, with the stipulation that if the house is found to have environmental health complaints and becomes uninhabitable or unhealthy during the next year due to animal feces, the kennel license will be revoked at that time. Motion carried 5-0. Item #10CONSIDERATION OF NEW RESIDENTIAL KENNEL LICENSE FOR 7412 COLFAX AVENUE; FOUR DOGS S.R. NO. 32 Public Safety Director Scott reviewed Staff Report No. 32 regarding a new residential kennel license for Gary and Stacy Berres, 7412 Colfax Avenue, for four dogs. Applicant Stacy Berres, 7412 Colfax Avenue, addressed the Council stating that she stops barking of the dogs as soon as she realized it’s happening. Council Member Enger asked what kind of dogs were at the residence and the size of the yard. Ms. Berres stated that she has four large dogs and doesn’t know the yard size. Jim McCarvill, 7416 Colfax Avenue, neighbor to the applicant, stated that he preferred the license not be issued because of odor in the yard. Sometimes he is unable to be in his own yard because of it. Council Meeting Minutes-12-January 22, 2001 Ms.Berres stated that she picks up animal feces at least weekly, but knows there can be an extensive odor, especially during the summer. M/Enger, S/Ulrich to deny the new residential kennel license for Gary and Stacy Berres, 7412 Colfax Avenue. Motion failed 2-3. (Mayor Kirsch, and Council Members Rosenberg and Sandahl opposed.) Council Member Enger stated that if the City receives numerous complaints about odor, the license should be rescinded. He believes a yard, if it’s 30’ x 70’, cannot support four dogs without constant maintenance. City Attorney Thomson reviewed the ordinance code regarding granting and revoking a license. M/Sandahl, S/Rosenberg to approve the new residential kennel license for Gary and Stacy Berres, 7412 Colfax Avenue, with the stipulation that the back yard be maintained in sanitary condition that does not result in odors and that the review of the license be brought back to Council if complaints are received. Motion carried 5-0. Item #11AIRPORT STATUS REPORT Acting City Manager Devich reported that the City of Richfield is working collaboratively with the former members of the Governor’s Airport Community Stabilization Task Force to recommend legislation that identifies a long-term funding mechanism for all noise-impacted communities to draw from. The most widely supported recommendation is to capture some of the increment from the airport sales tax to create a funding pool for noise mitigation measures. Minneapolis is devoting up to $15,000 towards this effort. Other communities are unsure of their support because of other priorities. Regardless, Richfield will pursue this initiative. Item #12HOUSING AND REDEVELOPMENT AUTHORITY REPORT Acting City Manager Devich reported the following HRA approvals on January 16: x 75-day extension for removal of Closing Contingencies from CSM Investors II, Inc. with the stipulation that CSM enter into an agreement with the City of Richfield addressing the schedule and cost allocation of public improvements. Absent such an agreement within 30 days of this approval, the extension shall be deemed null and void. Additionally, approve the extension with the added Council Meeting Minutes-13-January 22, 2001 stipulation that CSM must provide staff with a copy of a lease with their primary tenant within 30 days without which the extension is to become null and void and expression of intent to begin preliminary discussion with the property owners affected. x Resolutions regarding second amendment to contract for private redevelopment and issuance of limited revenue tax increment notes related to Gramercy Park Cooperative at Lake Shore Drive. x Issuance of Certificate of Completion for Gramercy Park Cooperative at Lake Shore Drive. x Cancelled the public hearing on Business Subside Agreement for City Bella project; project update provided. x Issuance of Certificate of Completion for Urban Village (also known as Woodlake Centre) in accordance with contract for private redevelopment between HRA and Richfield State Agency, Inc. x Resolution recognizing termination of assessment agreement for Richfield Medical Clinic project. Item #13OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS NOT ON THE AGENDA Deb Nordmarken, 6933 Sheridan Avenue, continued her comments on the inaccuracies in the Best Buy ad published in the Sun Current and the need for clarification at Council meetings. She stated concerns about children’s safety in the Best Buy area. George Tellgren, 6937 Upton Avenue, stated his support of the Council’s work and the continuation of the Best Buy project. Item #14COUNCIL DISCUSSION ITEMS This was discussed after the consent calendar, Item #4. Item #15CLAIMS AND PAYROLL M/Sandahl, S/Rosenberg that the following claims and payrolls be approved: Council Meeting Minutes-14-January 22, 2001 RICHFIELD BANK & TRUST CO. INT Checks:101851 - 101886$236,254.29 H/C104380 - 104721$1,056,670.65 PAYROLL22125 - 23322$490,474.02 TOTAL$1,783,398.96 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 10:10 p.m. Date Approved: Martin J. Kirsch Mayor Cheryl KrumholzSteven L. Devich Recording SecretaryActing City Manager