06-13-2023 Regular
CALL TO ORDER
The meeting was called to order by Mayor Supple at 7:00 p.m. in the Council Chambers.
Council Members Present:
Mary Supple, Mayor; Sharon Christensen; Simon Trautmann;
Sean Hayford Oleary; and Ben Whalen
Staff Present:
Katie Rodriguez, City Manager; Mary Tietjen, City Attorney;
Amy Markle, Recreation Services Director; Rachel Lindholm,
Sustainability Specialist; Melissa Poehlman, Community
Development Director; Jay Henthorne, Public Safety
Director/Police Chief; and Dustin Leslie, City Clerk
PLEDGE OF ALLEGIANCE
Mayor Supple led the Pledge of Allegiance.
Mayor Supple noted the Open Forum would be held after the Presentations.
APPROVAL OF MINUTES
M/Whalen, S/Trautmann to approve the minutes of the: (1) City Council Work Session of May
23, 2023; (2) City Council Meeting of May 23, 2023.
Motion carried: 5-0
ITEM #1
MINNESOTA PARKS AND RECREATION ASSOCIATION (MRPA)
PRESENTATION TO RICHFIELD RECREATION
Stephanie Schutta stated it was an honor to be at the meeting on behalf of the MRPA to present
the Minnesota Parks and Recreation Association 2022 Award of Excellence to the City of Richfield
Recreation Department on the project of Augsburg Adventure Park inclusive playground. She stated
the MRPA award committee would also like to recognize Amy Markle, who nominated this project.
Director Markle indicated this project brought the community together during the pandemic and
it meant a lot to so many people, including herself. She thanked the many people who made this project
happen. She stated they wanted to build a playground where everyone could play regardless of age or
ability. She thanked the Minnesota Recreation and Parks association for recognizing the board and to
the community for supporting it.
CITY COUNCIL MEETING MINUTES
Richfield, Minnesota
Regular Council Meeting
June 13, 2023
City Council Meeting Minutes -2-June 13, 2023
Council Member Trautmann thanked the MRPA and he was glad Director Markle was able to
be recognized in this way. He congratulated everyone who made this possible.
ITEM #2 PROCLAMATION CELEBRATING LGBTQ+ PRIDE MONTH
Mayor Supple read aloud the proclamation.
Mara Glubka thanked the Mayor and the City for being a good ally to the LGBTQ community.
She indicated there was still a lot of work to be done as evidenced by nearly 500 anti LGBTQ Bills that
had been introduced with many of them passing this year. She highlighted some of the areas where
there was a lot of misinformation going on about transgender youth, including gender ideology and the
idea that children were being indoctrinated or groomed.
Council Member Whalen thanked her for setting the record straight and he was proud to live in
a State where the State Legislature had been aligned with the set of values that had been making
Minnesota a safer place.
ITEM #3 PROCLAMATION CELEBRATING JUNETEENTH
Mayor Supple read aloud the proclamation.
Council Member Whalen stated there would be an event this coming Saturday at noon at the
bandshell with food and live music.
ITEM #4 PROCLAMATION CELEBRATING ELSEN BROTHERS GARAGE
Mayor Supple invited the Elsens to accept the proclamation and read aloud the proclamation.
Joe Elsen thanked the city for the Proclamation. He did not think his grandfather knew that 132
years later they would still be there.
Joe stated on behalf of the entire Elsen family, they were proud to be a part of this community.
And a lot of the credit went to his father and his brothers, his grandfather, and his great grandfather.
ITEM #5 APPROVAL OF THE AGENDA
M/Trautmann, S/Whalen to approve the agenda.
Motion carried: 5-0
OPEN FORUM
City Council Meeting Minutes -3-June 13, 2023
Mayor Supple reviewed the options to participate:
•Participate live by calling 1-415-655-0001 during the open forum portion
•Call prior to meeting 612-861-9711
•Email prior to meeting kwynn@richfieldmn.gov
Ruane Onesirosan, 2421 W 65th Street, read a letter to the Mayor and Councilmembers
regarding Section 147(f) of the IRS code of 1986 as revised on approvals being preceded by a public
hearing. She believed the $10,000,000 bonding issue transaction and approvals were unlawful
and unbinding under that IRS section. She indicated the open meeting laws existed to ensure the
absence of discussions prior to a meeting. She stated the public was being railroaded and the
resident’s concerns and opinions were being discarded and ignored.
Larry Ernster, 6727 Elliott Avenue South, questioned why Best Buy originally requested a
minimum assessment agreement when their headquarters was valued at over $150 million and real
estate properties were rising. He believed Best Buy wanted a minimum assessment agreement to keep
their property taxes down when property taxes were going higher. He presented a graph that described
what would happen in the last 2 years of the TIF at $60 million. He asked how would the drop in
commercial property tax be accommodated without shifting the tax burden to the taxpayers.
Mary Best, 6727 Elliott Avenue South, stated she had lived in Richfield her entire life and had
always been proud of the Richfield, but she wasn’t so sure anymore. She indicated Richfield had
many changes in the last 25 years and the City was not same as then the TIF agreement was signed
by Best Buy 23 plus years ago. She stated she was a concerned citizen who was disputing the Best
Buy information. She asked how would they keep her taxes from going up every year, sometimes by
double digits. She noted property values were going up all over the country, but Best Buy was asking
for a decrease in their value so they don’t have to pay so much. She asked if they could manipulate
their property value, how much was the Best Buy land really worth, and how does the evaluation
change so quickly, and who changes the value. She stated she did not want her taxes to go up.
Isaac Contreras stated he was the Twin Cities chapter past president and current Director of
Governmental Affairs Committee of NAHREP Twin Cities, the National Association of Hispanic real
estate professionals. He indicated he wanted to dispel some misconceptions about being on their
Board or a member of their association. He stated they looked for members who were interested in
their mission which was to advance sustainable Hispanic home ownership. He noted the Latino
population in Richfield had grown and was in the top 5 cities in the State in terms of Latino population
and the Latino’s wanted to make a better life for themselves and their families.
Dave Kunert stated he owned the building at 6621 Penn and he wanted to have a CBD
business there. He asked what the council was feeling about having a business at that location. He
asked if the moratorium would be revisited.
Mike Gowlik stated he was the CEO of Nature and Wellness, which was a cannabis company.
He indicated he empowered people to open up their own businesses, while advocating for wellness in
this industry. He indicated he took the business seriously and if the City was going to award anybody
a position to have a professional environment within the City, he encouraged them to line themselves
up with his management system and franchise. He stated he would ensure they were run at the
highest level of professionalism possible.
ITEM #5 CONSENT CALENDAR
City Manager Rodriguez presented the consent calendar.
City Council Meeting Minutes -4-June 13, 2023
A.Consider approval of an extension to the temporary easement grated to Hennepin County
for the Country State Aid Highway No. 52/Nicollet Avenue Safety Improvement Project at
70th Street. (Staff Report No. 67)
B.Consider the approval of setting a public hearing to be held on June 27, 2023, to consider
the issuance of new On-Sale Wine and 3.2 Percent Malt Liquor licenses for Toma Richfield,
LLC dba Toma Mojo Grill, located at 1700 66th Street East. (Staff Report No. 68)
C.Consider the approval of an agreement for Prosecution Services in the City of Richfield and
H/J Law. (Staff Report No. 69)
D.Consider a two-part request: Site plan review and a two-stall parking variance for Afghan
Halal Supermarket at 6626 Penn Avenue South. (Staff Report No. 70)
RESOLUTION NO. 12099
RESOLUTION APPROVING A SITE PLAN AND A TWO STALL PARKING
VARIANCE AT 6626 PENN AVENUE SOUTH
E.Consider adoption of a resolution authorizing the City of Richfield to accept grant funds in
the amount of $2,962.40 and enter into a Source Water Protection Grant Agreement with
the Minnesota Department of Health (MDH) to develop, distribute, and make available a
packet of information specific to the City’s Wellhead Protection Plan. (Staff Report No. 71)
RESOLUTION NO. 12100
RESOLUTION AUTHORIZING THE CITY OF RICHFIELD TO ACCEPT
GRANT FUNDS IN THE AMOUNT OF $2,962.40 AND ENTER INTO A
SOURCE WATER PROTECTION GRANT AGREEMENT (SWIFT
CONTRACT NUMBER 229726) WITH MINNESOTA DEPARTMENT OF
HEALTH TO DEVELOP, DISTRIBUTE, AND MAKE AVAILABLE A
PACKET OF INFORMATION SPECIFIC TO THE CITY’S WELLHEAD
PROTECTION PLAN
F.Consider Approval of a resolution updating the Public Purpose Expenditure Policy. (Staff
Report No. 72)
RESOLUTION NO. 12101
RESOLUTION APPROVING THE PUBLIC PURPOSE EXPENDITURE POLICY
G.Consider a resolution authorizing submittal of a grant application by Beacon Interfaith
Housing Collaborative to Minnesota Brownfields for environmental investigation at 6613-25
Portland Avenue. (Staff Report No. 73)
RESOLUTION NO. 12102
RESOLUTION AUTHORIZING SUBMITTAL OF A GRANT APPLICATION
TO MINNESOTA BROWNFIELDS FOR ENVIRONMENTAL
INVESTIGATION AT 6513-25 PORTLAND AVENUE
H.Authorize a first reading of an ordinance approving renewal of a cable television franchise
with Comcast of Minnesota, Inc., and schedule a public hearing and second reading for June
27, 2023. (Staff Report No. 74)
City Council Meeting Minutes -5-June 13, 2023
I.Consider adoption of a resolution authorizing the City to affirm the monetary limits on
statutory municipal tort liability. (Staff Report No. 75)
RESOLUTION NO. 12103
RESOLUTION AFFIRMING MUNICIPAL TORT
LIABILITY LIMITS ESTABLISHED BY MINNESOTA
STATUTES 466.04
J.First reading of a transitory ordinance providing funding for certain capital improvements
from the Liquor Contribution Special Revenue Fund. (Staff Report No. 76)
M/Whalen, S/Hayford Oleary to approve the consent calendar.
Council Member Hayford Oleary stated he did not have any concerns and welcomed the Afghan
Halal Supermarket on Penn. He indicated this was an interesting example of parking issues he had
raised in the past and with no off-street parking here. He believed the variance was justified and he
was glad they went out of their way to make it work. He stated he was excited to welcome the
supermarket to the community and thanked them for their willingness to be a useful test case on minimal
parking.
Council Member Trautmann expressed excitement to have the supermarket come into Ward
One. He recognized Masehullah Sahil and his business partner and welcomed them to the City.
Maria Lata Hill indicated they were the first Afghans to come to Minneapolis and now there are
over 2,000 Afghan individuals living in Minnesota. She thanked every Minnesotan who came forward
to help the new Afghan community members and she thanked the City of Richfield for supporting them
in their plan.
Council Member Trautmann believed this business was an incredible asset in addition to the
authentic Afghan food.
Motion carried: 5-0
ITEM #7 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT
CALENDAR
None.
ITEM #8 CONSIDER A REQUEST TO MODIFY (2024) AND THEN TERMINATE (2025)
BEST BUY’S MINIMUM ASSESSMENT AGREEMENT.
Council Member Trautmann presented the Staff Report.
Director Poehlman explained why the minimum assessment agreement was in place, and what
its intended purpose was. She noted the base taxes were paid on the $20 million and that would stay
regardless of what was done tonight and the residents were not being asked to make up any loss as a
result of what was done at this meeting. She stated property values were set by the County and the
City did not have anything to do with the property values. She indicated the agreement before the
Council at this meeting was a compromise and staff believed this protected the HRA and the City going
forward from litigation, it maintained the HRA, the City’s budget throughout the life of the test TIF District,
the money they were able to recoup, and make sure that in the next 2.5 years they were not seeing a
City Council Meeting Minutes -6-June 13, 2023
reduction of the work that the HRA could do. She stated they were actually coming out ahead. With
respect to Best Buy, this would allow them to go to the County and discuss what the true value of their
property was. She stated the staff and Best Buy had worked hard to come to this compromise and staff
was recommending this be approved because they believed it was a good path forward for everyone.
Council Member Trautmann asked if the $1,000 valuation of the property didn’t change the total
valuation, but it was recognizing the increase of the land at the same price, so it was not a tax break.
Director Poehlman responded that was correct and the property value was broken down by the value
of the land and the value of the structure and it has simply shifted the value of the structure to the land.
She noted the value of the land had gone up over the past several years.
M/Trautmann, S/Hayford Oleary to approve Resolution Approving Agreements with Best Buy
Co., Inc.
RESOLUTION NO. 12104
RESOLUTION APPROVING AGREEMENTS WITH BEST BUY CO., INC.
Council Member Hayford Oleary noted a resident at the Open Forum had shown a graph that
seemed to suggest that agreeing to a lower amount would have a permanent decades long effect on
the level at which it would be assessed, but it was his understanding that no matter when the TIF district
was up, the minimum assessment agreement went away no matter what was decided tonight and in
2030 the assessed value would be the fair market value of that property with or without a change to the
assessment agreement. Director Poehlman responded that was true and the TIF District would be
decertified on December 21, 2025 and going forward from there, the City would have no say in what
the value would be.
Council Member Whalen pointed out when this is done, the share of City taxes paid by anyone
other than Best Buy compared to the percentage they are paying, will shift and will be receiving more
from Best Buy. He acknowledged no one disagreed that the market had changed and the Best Buy
property was not worth what it was at the start of the TIF, but the City would still be receiving more
money. He clarified that the minimum assessment agreement was just a minimum and it was never
arbitrarily lowering the property value; it only stopped it from going lower. He appreciated all of the work
that went into this compromise and he believed it was reasonable.
Mayor Supple asked if Best Buy’s property value went to 60 million, and the assessor came out
and said it was worth 80 million, would Best Buy pay taxes on the 80 million. Director Poehlman
responded that was correct and explained the amount coming to the City would not change and what
was changing was the amount of the increment.
Mayor Supple noted while the County, the School District, and the City amounts would not
change, there were other governmental entities such as the State of Minnesota that receives money
and was not a part of the TIF agreement. Director Poehlman responded that was correct and the State
was paid the full value, so the State has been reaping the full benefit of the minimum assessment
agreement. If the value dropped below that minimum assessment the taxes that went to the State will
drop.
Mayor Supple inquired about the timeline. Director Poehlman stated State Statute said that in
order to modify or terminate a minimum assessment agreement, the City, the County, and the school
board must approve that agreement, and it must be recorded by June 30 of that year, in order to be
effective for the following tax valuations.
Mayor Supple asked if Best Buy had requested the school board or the County go forward. Tracy
Smith, an employee of Best Buy approached the podium. Ms. Smith responded they were not on any
of those agendas yet but they had had conversations and they are waiting to see what happened at this
meeting.
City Council Meeting Minutes -7-June 13, 2023
Council Member Hayford Oleary believed staff and Best Buy had reached what seemed to be a
reasonable agreement. He acknowledged there was an estimated loss, but as noted this was a
compromise and it was not perfect however litigation and staff time was not free either, so in the end
he believed this was a better deal for the City and other possible outcomes and he would be supporting
this.
Council Member Trautmann thanked staff and Best Buy for this compromise. He acknowledged
not everyone was thrilled with it, but it was a good settlement. He stated he had made a comment a
couple of weeks ago about bad faith and he wanted to make it clear that he never meant to question
anyone’s integrity in this process and he believed everyone conducted themselves in good faith.
Mayor Supple thanked the staff for all of the time that was spent on behalf of the City in the good
faith negotiations with Best Buy. She stated her top priority had always been what was best for the City
as a whole and it had been made clear earlier in the negotiation process that there should be no financial
loss to the HRA and this proposal did a better job of meeting that criterion. She indicated they worked
to make sure local taxpayers were protected, but it was also fair to Best Buy, who was the City’s largest
employer and Best Buy’s success helped the community as a whole. She indicated reaching a fair
agreement mitigated many risks and uncertainty while allowing them to move forward as a community.
Motion carried: 5-0
ITEM #9
CONSIDER THE APPROVAL OF RECOMMENDED CLIMATE ACTION PLAN
(CAP), PRIORITIZED ACTIONS FOR IMPLEMENTATION FROM 2023-2026 AND
THE RELATED AMENDMENT IN THE CITY’S STRATEGIC PLAN. (STAFF
REPORT NO. 77)
Council Member Whalen presented Staff Report 77.
M/Whalen, S/Trautman to approve the three recommended cap actions and amend them into
the strategic plan. Staff recommend counsel and executive leadership establish clear guidance and
direction for the participation in support of the cap implementation actions by all city of Richfield
departments.
Council Member Whalen thanked staff and he had not anticipated how helpful this would be.
He was excited this was one of the City’s top priorities and they have a plan to work across all of the
departments.
Mayor Supple lifted up and thanked the Sustainability Commission who gave staff a lot of
feedback.
Motion carried: 5-0
ITEM #10 CITY MANAGER’S REPORT
City Manager Rodriguez stated she had no report.
Council Member Hayford Oleary requested staff give an update at the next meeting on the
question of the moratorium for the CBD business that was brought up at the Open Forum.
ITEM #11 CLAIMS AND PAYROLL
City Council Meeting Minutes -8-June 13, 2023
M/Whalen, S/Trautmann that the following claims and payrolls be approved:
U.S. BANK 06/13/2023
A/P Checks: 314569 – 314951 $2,175,444.49
Payroll: 179035 – 179373 43646 $748,220.04
TOTAL $2,923,664.53
Motion carried: 5-0
ITEM #12 HATS OFF TO HOMETOWN HITS
Council Member Hayford Oleary stated the neighborhood at 64th and Grand welcomed the
Mayor and himself last week to discuss some of their concerns about development and traffic. He
thanked them for a productive discussion. He thanked the City staff who had come with. He stated he
was excited about the State law changes to traffic laws for bikes.
Council Member Trautmann gave hats off to Masehullah Sahil, the new Halal Supermarket
owner, for his vision on the functionality of Main Street on the west side of Richfield.
Council Member Christensen stated she had the opportunity to go with a group of people this
past weekend to Fireside Foundry at 6736 Penn where the food and service was excellent, even though
they were short staffed.
Council Member Whalen stated tonight was the kickoff for music at the bandshell at Veterans
Park. He reminded residents not to water their yard in the middle of the day, which was technically
illegal in the City. He recommended residents water before 10 or 11 a.m. or after dinner. He thanked
and gave hats off to the water utility staff for emailing him when he accidentally left a sprinkler on in his
garden overnight.
Mayor Supple gave hats off to the Class of 2023 and the graduates. She lifted up the Juneteenth
Celebration and noted before the celebration there would be a Freedom Walk at 11:30 a.m. at Veteran’s
Park Memorial which would end at the bandshell where there would be a celebration with live music,
guest speakers, community resources, and local vendors from noon until 4 p.m.
ITEM #13 CLOSED EXECUTIVE SESSION REGARDING THE CITY MANAGER’S ANNUAL
PERFORMANCE EVALUATION. (STAFF REPORT NO. 78)
M/Hayford Oleary, S/Trautmann to recess the meeting to enter and hold a closed meeting for
the purposes of conducting a performance evaluation of City Manager Katie Rodriguez, pursuant to
Minnesota Statutes Section 13D.05, subd. 3(a).
Motion carried: 5-0.
M/Hayford Oleary, S/Whalen, to go back into the Open Meeting.
Motion carried: 5-0.
City Council Meeting Minutes -9-June 13, 2023
Mayor Supple stated the Council just conducted a closed session for a performance evaluation
of the City Manager. The Council would be holding another closed performance evaluation meeting on
June 15, 2023. And as required by law the Council would be providing a summary of the performance
evaluation at its next regular meeting on June 27, 2023.
ITEM #14 ADJOURNMENT
M/Trautmann, S/Hayford Oleary to adjourn the meeting at 9:50 p.m.
Motion carried: 5-0
Date Approved: June 27, 2023
Mary B. Supple
Mayor
Dustin Leslie Katie Rodriguez
City Clerk City Manager