04-23-01 Regular
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Meeting
April 23, 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; and Gertrude
Ulrich.
Members
Not Present:Sue Sandahl.
M/Rosenberg, S/Ulrich to determine the absence of Council Member Sandahl as an
excused absence.
Motion carried 4-0.
Staff Present:Samantha Orduno, City Manager; Mike Eastling, Public Works
Director; Bruce Palmborg, Community Development Director; Jim
Topitzhofer, Recreation Services Director; Cheryl Krumholz,
Recording Secretary; and John Dean, City Attorney.
Council Meeting Minutes-2-April 23, 2001
APPROVAL OF MINUTES
M/Rosenberg, S/Ulrich to approve the minutes of the (1) Special City Council Study
Session of April 9, 2001; (2) Regular City Council Meeting of April 9, 2001; (3) Special City
Council Closed Executive Session of April 9, 2001; and (4) Special Concurrent City
Council and HRA Meeting on April 10, 2001.
Motion carried 4-0.
Item #1PRESENTATION BY I-494 CORRIDOR COMMISSION
Mayor Kirsch announced that the I-494 Corridor Commission requested
postponement of tonight’s presentation.
Item #2PRESENTATION OF PROCLAMATION DESIGNATING SMALL BUSINESS
WEEK IN RICHFIELD, MAY 6-12, 2001
Council Member Rosenberg read and presented a proclamation designating Small
Business Week in Richfield, May 6 – 12, to Peggy Hamilton and Larry Eastman.
Item #3PRESENTATION OF CERTIFICATE OF RECOGNITION FROM
MINNESOTA NATURALISTS’ ASSOCIATION TO WOOD LAKE NATURE
CENTER AND RICHFIELD PUBLIC SCHOOL DISTRICT 280
Glen Shoemaker from the Minnesota Naturalist Association read and presented
certificates of recognition from the association to Karen Shragg, Wood Lake Nature Center
Manager, and Dave Larson, Richfield School District representative, for their 30-year
environmental education partnership.
Item #4PRESENTATION OF PROCLAMATION DESIGNATING EARTH DAY, MAY
5, 2001
Council Member Ulrich read and presented a proclamation designating East Day,
May 5, 2001 to Karen Shragg, Wood Lake Nature Center Manager.
Council Meeting Minutes-3-April 23, 2001
Item #5PRESENTATION OF PROCLAMATION DESIGNATING MAY AS ARBOR
MONTH IN RICHFIELD
Council Member Ulrich read and presented a proclamation designating May as
Arbor Month in Richfield to Mike Eastling, Public Works Director.
Item #6PRESENTATION OF PROCLAMATION DESIGNATING NATIONAL
DRINKING WATER WEEK, MAY 6-12, 2001
Council Member Rosenberg read and presented a proclamation designating
National Drinking Water Week, May 6-12, to Bill LaLonde, Public Works Worker in the
City’s Utilities Division.
Item #7PRESENTATION OF PROCLAMATION DESIGNATING NATIONAL
PUBLIC WORKS WEEK, MAY 20-26, 2001
Council Member Enger read and presented a proclamation designating National
Public Works Week, May 20-26, to Scott Provost, Public Works Worker in the City’s
Parks/Streets Division.
Public Works Director Eastling presented a brief video entitled “Public Works and
Your Quality of Life” prepared by the Metropolitan Area Managers Association and the
International Union of Operating Engineers Local 49.
Mayor Kirsch recognized Boy Scout Troop 64 as members of the audience who are
earning their Community Merit Badge.
Item #8COUNCIL DISCUSSION ITEMS
Council Member Rosenberg said she had received messages from residents
questioning the purchase prices of the homes in the Interchange West area. She said,
because of the misunderstandings in the messages, she contacted staff and asked them
to explain the purchasing process at tonight’s meeting. Ms. Rosenberg stated she has had
discussions with Opus and Best Buy and she is pleased with their approach and the
outcome. She said residents believe they are treated fairly and respectfully.
Council Meeting Minutes-4-April 23, 2001
City Manager Orduno reported that Best Buy has purchased the Interchange West
properties, not the City. It is a private transaction between the parties. The purchase price
includes the sale price of the home, moving costs, transitioning costs and extraordinary
expenses. Because all the residential properties were negotiated sales, the City is not a
party to the amount of the transition benefits paid. Under federal law, cities are involved
with payments beyond the actual sale of the home only when the City is the actual
purchaser. Best Buy will receive a maximum of $48 million (60%) in TIF out of their total
taxes over the life of the 25 year district, that money reimburses them for the acquisition of
properties, demolition costs and site preparation costs. We do know that the total dollar
amount of those three activities will be in excess of the $48 million they will be reimbursed
from their increased property taxes. It is their choice if they wish to spend additional funds
for any one or all of the legally reimbursable expenses. Although Hennepin County does
an excellent job of appraising homes every four years, estimated market value is not
always consistent with actual market sales. They are very good at targeting appraised
values in the area of 95% of what homes actually sell for, but much of that depends on
when was the last time the home was appraised. In that timeframe, homes can sell, do
sell and sell based on what other homes have sold for in the area.
Larry Miller, Hennepin County Appraisal Supervisor, explained the process of
appraising homes and determining the estimated market values. Mr. Miller reviewed the
progression of the percentage of single family residential home sales in Richfield over
$100,000. He said property values are continuing to appreciate.
Council Member Rosenberg asked Mr. Miller if he was involved in the Interchange
West appraisals.
Mr. Miller answered he was not involved in the Interchange West appraisals. He
said he was involved in the appraisals when this area was part of the re-evaluation cycle.
Council Member Enger, discussing two properties in the Interchange West area,
said it appeared Best Buy was overpaying on the purchases or Hennepin County was
grossly inadequate in assessing property values. Mr. Enger asked if the tax collection for
these homes would be greater for Richfield and Hennepin County if they had been
assessed at 90% – 95% of the current saleable price.
Mr. Miller said the tax is based on the City’s tax levy – a higher value on a home
does not necessarily mean higher taxes.
Council Member Enger said the higher purchase prices have resulted in a TIF
increase from $31 million to $48 million for the Interchange West property site acquisition
and demolition.
City Manager Orduno said the City cannot speak to the purchase price of the
homes because that is a private transaction. She was unsure if the offer was an
aggregate offer. Aggregate costs of homes include more than the initial price of the home.
Shesaid since the City is not purchasing the homes, the sellers are not entitled to
relocation costs under the Uniform Relocation Act. It is up to Best Buy if they want to help
with extraordinary costs, it is not required by law.
Council Meeting Minutes-5-April 23, 2001
Council Member Enger said that fairness in property acquisition is important. He
said it appears to be better for the Interchange West homes to be purchased by Best Buy
than the City, until we’re out 25 years.
City Attorney Dean explained that the increase to the maximum $48 million in TIF in
the Best Buy development contract was not related to property acquisition, but included
acquisition funds from the State for the Penn Avenue bridge reconstruction. He said
property acquisitions are greater than earlier estimated.
Council Member Rosenberg stated she was appalled that some believe the
Interchange West residents don’t deserve fair market value for their homes, especially
considering what these residents have gone through for the past four years.
Council Member Ulrich stated that she understands the purchasing of the
Interchange West homes is between the buyer and seller, it is not the City’s business.
Mayor Kirsch said that in past situations like this, the Council would hear that
residents were not getting what they deserved for their homes, but records indicate they
were and now we’re hearing people are getting too much. He said these are transactions
between two private parties and not the City’s business.
Council Member Ulrich, as liaison to FOWL, announced the Wood Lake Nature
Center FOWL annual fund raising event on April 27 at the Embassy Suites Hotel in
Bloomington.
Mayor Kirsch said a Special City Council meeting on May 21 prior to the HRA
meeting was necessary to consider the 76th Street Environmental Assessment Worksheet.
Council Member Enger requested a City Council Study Session to discuss the
roadway improvements for the 7600 block of Lyndale Avenue and Moody’s bond rating.
He asked that future Maintenance Facility Task Force meetings be scheduled on non-
Council meeting nights so he can attend. He also asked for a task force update at the next
City Council meeting.
Mayor Kirsch stated there would be a Special City Council Study Session on May
21 at 5:30 p.m. to discuss Council Member Enger’s issues with a Special City Council
meeting immediately following to consider the Environmental Assessment Worksheet
(EAW).
Item #9OPPORTUNITY FOR CITIZENS TO ADDRESS THE COUNCIL ON ITEMS
NOT ON THE AGENDA
Deb Nordmarken, 6933 Sheridan Avenue, commented on and questioned the
purchase price of homes in the Interchange West area and the use of TIF. She said public
information on the prices was available through a link on the Richfield Care.com website.
Ms. Nordmarken asked if Best Buy will help increase the General Fund.
Council Meeting Minutes-6-April 23, 2001
Council Member Enger answered that as he understands TIF, Best Buy’s current
taxes are frozen for 25 years.
Mark (last name unclear for the record), 7638 Bryant Avenue, commented that TIF
financing is government money being used for land acquisition and site preparation. He
asked if the $48 million was for land acquisition and development of the Best Buy site.
City Manager Orduno said part of the money is used for land acquisition, but it is not
used for constructing buildings.
Paul Nelson, 6633 16th Avenue, said the City is responsible for the way the
Interchange West residents were handled. He commented that if these homes are worth
this money, why is the area considered blighted.
Robert Hall, 7309 Oliver Avenue, commented on the April Your City concerning the
need for communication to the residents about the closure of 76th Street between I-35W
and Penn Avenue and the timeline for the reconstruction of the Penn Avenue bridge. He
said he is concerned about detours.
City Manager Orduno said there would be articles in future Your City newsletters
and the Sun Current. She said the 76th Street closure could be revisited and include
neighborhood meetings. Ms. Orduno said the Penn Avenue bridge schedule depends on
pre-construction activities, including MnDOT funding and site clearnace.
Mr. Hall asked about the status of traffic issues at 76th Street and Newton Avenue,
as it related to Best Buy traffic in neighborhoods.
City Manager Orduno said there will only be a traffic light at the intersection.
Item #10COUNCIL APPROVAL OF AGENDA
M/Ulrich, S/Rosenberg to approve the agenda.
Motion carried 4-0.
Item #11CONSENT CALENDAR
A.Removed from the consent calendar and placed on the regular agenda for
consideration as Item 12A
B.Approved resolution authorizing acquisition of 7039 Fifth Avenue and scheduling a
public hearing and second reading of a transitory ordinance authorizing sale of
property to HRA for rehabilitation for May 29, 2001 S.R. No. 99
Council Meeting Minutes-7-April 23, 2001
RESOLUTION NO. 9031
RESOLUTION AUTHORIZING THE PURCHASE OF REAL PROPERTY
LOCATED AT 7039 FIFTH AVENUE SOUTH
This resolution appears as Resolution No. 9031 in Resolution Book No. 72.
C.Approved award of contract to Earl F. Anderson for replacement of playfeatures at
Little Bob’s Park, 6700 Harriet Avenue, in amount of $42,998 S.R. No. 100
D.Approved itinerant place of amusement, itinerant food and temporary intoxicating
liquor licenses for Don Pablos, 980 West 78th Street, for Cinco De Mayo Celebration
on May 5, 2001 S.R. No. 101
E.Approved itinerant food license for B&D’s Convenience Plus, 813 East 66th Street,
for Fourth of July Celebration S.R. No. 102
Council Member Enger asked to have Item 11A removed from the Consent
Calendar and placed on the regular agenda.
Mayor Kirsch stated that Item 11A would be removed from the Consent Calendar
and placed on the regular agenda as Item 12A.
M/Ulrich, S/Rosenberg to approve the consent calendar as amended.
Motion carried 4-0.
Item #12CONSIDERATION OF RESOLUTION ESTABLISHING JUST
COMPENSATION AND AUTHORIZING PURCHASE OF TWO SINGLE
FAMILY HOMES AT 6400 AND 6408-18TH AVENUES.R. NO. 103
Community Development Director Palmborg reviewed Staff Report No. 103
regarding a resolution establishing just compensation and authorizing purchase of two
single family homes at 6400 and 6408 18th Avenue.
Council Member Enger asked if these homes had basements.
Community Development Director Palmborg answered he thought there were
basements.
Council Member Enger said he will vote for this resolution because people need to
be compensated and get on with their lives, but is not totally in agreement with it. He
requested that he view the appraisals on 18th Avenue properties after their closing. He
said upon closing, all information is available to the public except relocation costs.
City Attorney Dean said the information becomes public at closing.
Council Meeting Minutes-8-April 23, 2001
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. 9032
RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING
PURCHASE OF REAL PROPERTY LOCATED AT
6400 and 6408 - 18th AVENUE
Motion carried 4-0.This resolution appears as Resolution No. 9032 in Resolution
Book No. 72.
Item #12ACONSIDERATION OF APPROVAL OF (1) RESOLUTION AUTHORIZING
MODIFICATION TO TAX INCREMENT FINANCING PLAN FOR
INTERSTATE-LYNDALE-NICOLLET TAX INCREMENT FINANCING
DISTRICT AND (2) RESOLUTION AUTHORIZING DECERTIFICATION OF
PARCELS FROM INTERSTATE-LYNDALE-NICOLLET TAX INCREMENT
FINANCING DISTRICT S.R. NO. 98
Community Development Director Palmborg reviewed Staff Report No. 98 regarding
a resolution authorizing modification to Tax Increment Financing Plan for Interstate-
Lyndale-Nicollet Tax Increment Financing District and a resolution authorizing
decertification of parcels from Interstate-Lyndale-Nicollet Tax Increment Financing District.
M/Rosenberg, S/Ulrich 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. 9029
RESOLUTION AUTHORIZING THE MODIFICATION TO THE
TAX INCREMENT FINANCING PLAN FOR THE
INTERSTATE-LYNDALE-NICOLLET (ILN)
TAX INCREMENT FINANCING DISTRICT
Council Member Enger asked Sid Inman to explain the decertification as it applies
to the 11 parcels on Lyndale Avenue and the interfund loans.
Sin Inman, Ehlers and Associates, stated the requirements for tonight’s action and
provided the explanations as requested.
Council Member Enger asked if ILN was the original name of this TIF district.
Community Development Director Palmborg reviewed the history of the ILN project.
Council Member Enger asked if Interchange West is part of this district.
City Manager Orduno said no.
Council Meeting Minutes-9-April 23, 2001
Council Member Enger asked if the 11 parcels to be recertified have TIF applied
towards redevelopment.
Community Development Director Palmborg responded no, they are “untreated”.
Council Member Enger asked if the changes in State law that are before the City
Council tonight are proposed changes.
Mr. Inman said yes.
Motion carried 4-0. This resolution appears as Resolution No. 9029 in Resolution
Book No. 72.
Council Member Ulrich said that parking in the 75th Street and Lyndale Avenue
area is a great problem and something needs to be done.
M/Rosenberg, S/Ulrich 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. 9030
RESOLUTION AUTHORIZING THE DECERTIFICATION OF PARCELS
FROM THE INTERSTATE-LYNDALE-NICOLLET (ILN)
TAX INCREMENT FINANCING DISTRICT
Motion carried 4-0. This resolution appears as Resolution No. 9030 in Resolution
Book No. 72.
City Manager Orduno stated a correction needed to be made to the Staff Report
and resolutions-ILN should be identified as Interstate-Lyndale-Nicollet, not Interchange-
Lyndale-Nicollet as originally reported. She said this clarified the reasons for the questions
raised related to the Interchange West area.
Item #13CONSIDERATION OF AWARD OF CONTRACTS TO JANESVILLE
MOVERS AND SWIFT MOVERS FOR SALE AND REMOVAL OF HOMES
AND GARAGES ON 18TH AVENUE S.R. NO. 104
Community Development Director Palmborg reviewed Staff Report No. 104
regarding the award of contracts to Janesville Movers and Swift Movers for sale and
removal of homes and garages on 18th Avenue.
Council Member Enger said the movers should be commended for making
affordable homes available.
JoeGroh, owner of the Janesville Movers, said the homes are relocated to people
who need them.
Council Meeting Minutes-10-April 23, 2001
Mayor Kirsch asked why homes without basements are not moved.
Mr.Groh said these homes are very hard to move and are not as desirable to sell.
Bob Swift, Swift House Movers of Big Lake, expressed concerns on how the bids
were handled. He suggested a simpler process.
Council Member Enger asked if the process could be simplified for next time.
City Manager Orduno said the process can be streamlined as long as legal
requirements are met.
M/Enger, S/Rosenberg to award the contracts for sale and removal of homes and
garages on 18th Avenue to Janesville Movers and Swift Movers.
Motion carried 3-0. (Enger was not present during the vote.)
Item #14CONSIDERATION OF PROFESSIONAL SERVICES AGREEMENT FOR
APPRAISAL WORK FOR 66TH STREET AND TRUNK HIGHWAY 77
INTERCHANGE PROJECT S.R. NO. 105
City Manager Orduno reviewed Staff Report No. 105 regarding the Professional
Services Agreement for appraisal work for 66th Street and Trunk Highway 77 Interchange
Project.
M/Ulrich, S/Rosenberg to approve the execution of the Professional Services
Agreement for appraisal work for the 66th Street and Trunk Highway 77 Interchange
Project.
Motion carried 3-0. (Enger was not present during discussion and the vote.)
Item #15AIRPORT STATUS REPORT
City Manager Orduno reported on the following:
HF721/SF652 ($30 million appropriation request)
x
The Senate has set aside $10 million in their targets (coming from the rebate
money) in its Transportation Omnibus Bill for noise mitigation funding for
Richfield to continue residential acquisition in the 87 dB noise area. The Senate
also understands this does not meet all Richfield’s needs and expects the City to
come back for additional funding.
x
Nothing is anticipated from the House.
Council Meeting Minutes-11-April 23, 2001
HF1451/SF888 (Long-term funding mechanism effort)
x
The Senate will have language from the Governor’s Task Force
Recommendations in its Jobs and Economic Development Omnibus Bill. The
language of the bill will be released sometime this week and will be based on
SF888.
x
Although there is no language in any House bill, that should not indicate any
unwillingness on the part of the House leadership to help Richfield solve its
airport noise issues.
Mayor Kirsch thanked residents who testified at the hearings at the Capitol.
Council Member Rosenberg said she agreed with Kristian Dahl’s letter to the editor
in a recent Richfield Sun Current. She said the impact of the airport on our City is the most
important issue facing Richfield.
Council Member Ulrich said that Perry Thorvig’s letter from the City to the residents
on 18th Avenue was well done.
Council Member Enger said he has a tape of Mr. Hamiel testifying in Washington,
D.C. before a committee on airport issues regarding how airports around the country must
work with residents that live close by an airport to get the best noise mitigation. Mr. Enger
said the residents around the metro airport must stand together and demand what was
promised in 1996 for noise mitigation.
Item #16CLAIMS AND PAYROLL
M/Rosenberg, S/Ulrich that the following claims and payrolls be approved:
RICHFIELD BANK & TRUST CO.
INT Checks:102062 - 102098$74,596.90
H/C106402 - 106722$670,256.15
PAYROLL24202 - 24370$457,695.62
TOTAL$1,202,548.67
Motion carried 4-0.
Council Meeting Minutes-12-April 23, 2001
ADJOURNMENT
The meeting was adjourned by unanimous consent at 9:00 p.m.
Date Approved:
Martin J. Kirsch
Mayor
Cheryl KrumholzSamantha Orduno
Recording SecretaryCity Manager