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091311completeagendaCITY OF RICHFIELD, MINNESOTA TUESDAY, SEPTEMBER 13, 2011 RICHFIELD MUNICIPAL CENTER SPECIAL CONCURRENT CITY COUNCIL/PLANNING COMMISSION WORKSESSION BARTHOLOMEW CONFERENCE ROOM 6700 PORTLAND AVENUE 6:00 P.M. AGENDA Call to order Roll call 1. Discussion regarding Menards development proposal for 77th Street and Nicollet Avenue area (Council Memo No. 107) Notes: Adjournment REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 7:00 P.M. AGENDA INTRODUCTORY PROCEEDINGS Call to order Roll call Open forum (15 minutes maximum) Each speaker is to keep their commenf period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting, Notes: Pledge of Allegiance Approval of minutes of (1) Regular City Council Meeting of August 9, 2011 and (2) Special City Council Meeting of August 17, 2011 PRESENTATIONS 1. Presentation of Certificate of Recognition to Richfield Roadrunners - U17 Girls Traveling Soccer Team Classic 3 Division State Champions 2. Annual meeting with Arts Commission COUNCIL DISCUSSION 3. Council discussion • Hats Off to Hometown Hits Notes: AGENDA APPROVAL 4. Council approval of agenda CONSENT CALENDAR 5. Consent Calendar contains several separate items, which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of continuing public hearing to September 27, 2011 regarding vacation of easement at 6401 Lyndale Avenue S.R. No. 176 B. Consideration of approval of resolution declaring costs to be assessed and ordering preparation of proposed assessment roll for unpaid false alarm user fees against private property and setting public hearing for October 11, 2011 S.R. No. 177 C. Consideration of approval of resolution declaring costs to be assessed and ordering preparation of proposed assessment roll for weed elimination from private property and removal or elimination of public health or safety hazards from private property and setting public hearing for October 11, 2011 S.R. No. 178 D. Consideration of approval of first reading of ordinance amending Subsection 537.05, Subdivision 1 of Richfield City Code related to conditional uses in mixed use districts S.R. No. 179 E. Consideration of approval of first reading of ordinance rezoning properties located at 6401 Lyndale Avenue, 515 64th Street West and 521 64th Street West from C-2 (General Commercial) and R (Single-Family Residential) to PMR (Planned Multi- Family Residential) S.R. No. 180 F. Consideration of approval of resolution authorizing City staff to incur cost for reconstruction of 76th Street East (from 12th Avenue to Cedar Avenue) and hiring of Howard R. Green to perform engineering services for 76th Street Reconstruction Project for fee not to exceed $300,000 S.R. No. 181 G. Consideration of approval of Richfield Municipal Center change order report for 182regate net effect of $68,100 in items included within project budget S.R. No. H. Consideration of approval of itinerant place of amusement and itinerant food licenses for Richfield Visions, Inc. for Richfield Cattail Days events at Veterans Memorial Park, 6400 Portland Avenue, on September 27, 2011 S.R. No. 183 I. Consideration of approval of temporary on-sale liquor license for Blessed Trinity's Parent Meet and Greet on September 17, 2011 S.R. No: 184 Notes: 6. Consideration of items, if any, removed from Consent Calendar Notes: PUBLIC HEARINGS 7. Public hearing regarding resolution adopting modification to redevelopment plan for Richfield Redevelopment Project Area and adopting amended and restated tax increment financing plan for 2010-1 Housing Tax Increment Financing District; Woodlake Housing Staff Report No. 185 Notes: 8. Public hearing regarding resolution authorizing issuance, sale and delivery of City's Variable Rate Demand Multifamily Housing Revenue Bonds (Woodlake Richfield Apartments Project), Series 2011 Staff Report No. 186 Notes: PROPOSED ORDINANCES 9. Consideration of second reading of ordinance amending City's zoning ordinance increasing permissions for horticulture/community gardens, animal kennels, and tattoo shops in certain areas, reduce commercial setbacks in certain areas and remove contradictory minimum lot area requirements from multi-family districts and resolution authorizing summary publication of ordinance . Staff Report No. 187 Notes: 10. Consideration of purchase agreement and second reading of ordinance providing for sale of certain real property of city to Wellington Management Inc. Staff Report No. 188 Notes: RESOLUTIONS 11. Consideration of resolution granting approval of major site plan amendment at 1600 78th Street East to allow 9,600 square foot addition to existing building Staff Report No. 189 Notes: 12. Consideration of 2011 Revised/2012 Proposed Budget resolutions adopting 2012 preliminary property tax levy, setting truth in taxation hearing date, authorizing budget revisions, and authorizing revision of 2011 budget of various departments Staff Report No. 190 Notes: CITY MANAGER'S REPORT 13. City Manager's report • Reschedule November 8, 2011 Regular City Council Meeting Notes: 14. Claims and payrolls Open forum (additional 15 minutes if more time needed after first Open Forum and by majority vote of the City Council) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunify to address the Council on items not on fhe agenda. Individuals who wish fo address the Council must have registered prior to the meeting. Notes: 15. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. CITY OF RICHFIELD, MINNESOTA Office of City Manager September 8, 2011 Council Memorandum No. 107 PC Memorandum No. 9 Planning Commission The Honorable Mayor City of Richfield and Members of the City Council Subject: Menards Development Proposal (Worksession Item No. 1) Council Members: Dear Council Members and Commissioners: On August 11, 2011 Menards submitted an application for a rezoning of their site to allow for the demolition of the existing building and the construction of a new, and much expanded store. As submitted, Menards plan does not comply with many provisions of the Comprehensive Plan or the Zoning Ordinance. It also appears that the location of ingress/egress into the site does not meet the engineering guidelines administered by Hennepin County and the City's Public Works staff. While staff members are very supportive of the construction of a new Menards, they are also accountable for enforcing City Code and other applicable requirements and do not have much discretion to do otherwise. In an effort to better inform the City Council and Planning Commission of the issues of concern and to find solutions in which Menards plan for a new building can be accomplished while meeting codes and requirements, a Special Combined City Council and Planning Commission Worksession has been scheduled for Tuesday, September 13, 2011 at 6:00 p.m. The plan that Menards submitted on August 11, 2011 is attached. Representatives of Menards hope to have an updated plan available for review and discussion at the meeting. ec Ily submi d, T~ 1 S en L. De is City Manager SLD:cak Attachment Email: Department Directors Assistant City Manager Copy: Panning Commission i ~ ~ I A ~ ~~~~ ~° ~, b~~~ y O ~I W to iv co ®~ ,_~ ~ avRo e ~ ~ 1- Gs ~s Enb+mcm Ern EnYac. 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P ~~~ ~~ t ~ g~gs 4'^$ ~4~9 g sA, /A e E ~ ~~x n ~ ~. ~~0~ ~ '~ tO ~. aCn~'R i ~, ~~~ O Na N• ~ n O v (Z, ® ~Q -' •• c-f. cam. l0 C' cti- cs O I ~ 1 ~Z° k d ~~ J t ~~ 8 ~a J ~' t~ a 1 4 s # ~ ~ ~ ~ ~~ o~ i~ J ~~ ~N ~~ ~~ ~~ ~~~ ~ ~o ~o ~~ ~ J CITY COUNCIL MEETING MINUTES Richfield, Minnesota Regular Meeting August 9, 2011 CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:00 p.m. ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Pat Elliott; and Tom Fitzhenry. Staff Present: Pam Dmytrenko, Acting City Manager; Kristin Asher, Acting Public Works Director; John Stark, Community Development Director; Karen Barton, Community Development Manager; Chris Regis, Finance Manager; Melissa Poehlman, City Planner; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. OPEN FORUM None. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Mayor Goettel led the audience in the Pledge of Allegiance. APPROVAL OF MINUTES M/Sandahl, S/Elliott to approve the minutes of (1) Special City Council Worksession of July 26, 2011 and (2) Regular City Council Meeting of July 26, 2011. Motion carried 5-0. Council Meeting Minutes -2- August 9, 2011 Item #1 PRESENTATION OF 2011 LANDSCAPE GOOD NEIGHBOR AWARD WINNERS Mayor Goettel announced the 2011 Landscape Good Neighbor Award winners: "Best Overall Garden" category: • Darcy Buelow, 7221 Oliver Avenue South • Bonnie Gruberman, 7401 Girard Avenue South • Jeanne Hiller, 6715 Stevens Avenue South "Best Overall Landscaping" category: • Deb Kelly, 6415 Wentworth • Patricia Sandoval and Angel Rodriguez, 621 68th Street East • Earnestine Collins, 903 Rae Drive Item #2 ANNUAL MEETING WITH CHARTER COMMISSION Marty Kirsch, Charter Commission President, 6725 Penn Avenue, reported on the 2011 commission meetings. Item #3 COUNCIL DISCUSSION • HATS OFF TO HOMETOWN HITS Mayor Goettel and Council Member Elliott presented a certificate of recognition to Jeanne Arland Peterson honoring her musical life. Council Member Sandahl reported on the success of Saturday's Urban Wildland Half Marathon and 5K. Council Member Sandahl reported on the recent Star Tribune article regarding Wood Lake Nature Center. Council Member Sandahl announced the new Wood Lake Nature Center fundraising event, Birds and Birdies Golf Tournament, on September 19, 2011. Council Member Fitzhenry reported on the successful Night to Unite event. Council Member Fitzhenry announced that on August 23, 2011 Governor Dayton will proclaim Richfield a Beyond the Yellow Ribbon Community. Mayor Goettel announced the recruitment for youth commission members is underway. Item #4 COUNCIL APPROVAL OF AGENDA Council Meeting Minutes -3- August 9, 2011 M/Elliott, S/Fitzhenry to approve the agenda. Motion carried 5-0. Item #5 CONSENT CALENDAR A. Consideration of approval of first reading of ordinance amending City's Zoning ordinance increasing permissions for horticulture/community gardens, animal kennels, and tattoo shops in certain areas, reduce commercial setbacks in certain areas and remove contradictory minimum lot area requirements from multi-family districts S.R. No. 159 B. Consideration of approval of resolution calling for public hearing on September 13, 2011 regarding proposed modification to redevelopment plan for Richfield Redevelopment Project Area and proposed adoption of amended and restated tax increment financing plan for 2010-1 Housing Tax Increment Financing District; Woodlake Housing S.R. No. 160 RESOLUTION NO. 10539 RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND THE PROPOSED ADOPTION OF AN AMENDED AND RESTATED TAX INCREMEMNT FINANCING PLAN FOR THE 2010-1 HOUSING TAX INCREMENT FINANCING DISTRICT (WOODLAKE HOUSING) This resolution appears as Resolution No. 10539. C. Consideration of approval of resolution calling for public hearing on September 13, 2011 regarding multifamily rental housing development and giving preliminary approval to issuance of revenue bonds; Woodlake Richfield Apartments, LLC S.R. No. 161 RESOLUTION NO. 10540 RESOLUTION CALLING A PUBLIC HEARING REGARDING A MULTIFAMILY HOUSING DEVELOPMENT AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COSTS THEREOF UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO; AND TAKING CERTAIN OTHER ACTIONS WITH RESPECT THERETO This resolution appears as Resolution No. 10540. D. Consideration of approval of memorandum of understanding between Minnehaha Creek Watershed District and City of Richfield for purposes of advancing Legion/Taft Lake Improvement Project S.R. No. 162 E. Consideration of approval of Richfield Municipal Center change order report for aggregate net effect of $16,354.46 in items included within project budget S.R. No. 163 F. Consideration of approval of agreement with 7700 Nicollet, LLC relating to maintenance of sump manholes at 7700 Nicollet Avenue S.R. No. 164 G. Consideration of approval of temporary food and temporary on-sale liquor licenses for Church of St. Peter's Pig Roast on August 20, 2011 S.R .No. 165 H. Consideration of approval of resolution accepting monetary contributions for Public Safety/Police events and programs S.R. No. 166 RESOLUTION NO. 10541 Council Meeting Minutes -4- August 9, 2011 RESOLUTION AUTHORIZING RICHFIELD PUBLIC SAFETY/POLICE TO ACCEPT DONATIONS FROM THE LISTED AGENCIES, BUSINESSES AND PRIVATE INDIVIDUALS FOR DESIGNATED USES This resolution appears as Resolution No. 10541. M/Goettel, S/Sandahl to approve the Consent Calendar. Motion carried 5-0. Item #6 CONSIDERATION OF ITEMS, IF ANY, REMOVED FROM CONSENT CALENDAR None. Item #7 PUBLIC HEARING REGARDING RESOLUTION ADOPTING SPECIAL ASSESSMENT ROLL FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR WORK ORDERED IN 2010 (STAFF REPORT NO. 167) Council Member Sandahl presented Staff Report No. 167. Acting Public Works Director Asher explained that upon a field trip on May 8, 2011 and a phone conversation with Euneke McDowell, 7107 17th Avenue, staff is recommending that the assessment for her property be adjusted, reflecting the removal of one tree, not two. A revised resolution was provided to the City Council. Garnett Franklin, 1409 East 69th Street, stated the special assessment on her property was not disclosed by the title company at the time of closing. City Attorney Heine stated Ms. Franklin may have a claim against the title company and a potential claim with the seller based upon the purchase agreement. Euneke McDowell, 7107 17th Avenue, questioned the payment options and timelines as stated in her notification letter. Finance Manager Regis explained the process of notification and payment timelines. City Attorney Heine reviewed the State Statute guidelines and interest rate. M/Wroge, S/Sandahl to close the public hearing. Motion carried 5-0. M/Sandahl, S/Wroge that the following amended resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10542 RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR Council Meeting Minutes -5- August 9, 2011 REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR THE PERIOD OF JANUARY 1, 2010 TO DECEMBER 31, 2010 Motion carried 5-0. This resolution appears as Resolution No. 10542. Item #8 PUBLIC HEARING REGARDING ADOPTING SPECIAL ASSESSMENT ROLLS FOR 2010 MAINTENANCE SERVICES AND RESOLUTION ORDERING CURRENT 2012 MAINTENANCE SERVICES; 77T" STREET MAINTENANCE DISTRICT (STAFF REPORT NO. 168) Council Member Wroge presented Staff Report No. 168. M/Wroge, S/Sandahl to close the public hearing. Motion carried 5-0. M/Wroge, S/Elliott that the following resolutions be adopted and that it be made part of these minutes: RESOLUTION NO. 10543 RESOLUTION ADOPTING ASSESSMENT ON 77TH STREET MAINTENANCE FOR THE PERIOD JANUARY 1 -DECEMBER 31, 2010 Motion carried 5-0. This resolution appears as Resolution No. 10543. RESOLUTION NO. 10544 RESOLUTION ORDERING UNDERTAKING OF CURRENT SERVICE PROJECT 77TH STREET PROJECT AREA JANUARY 1 THROUGH DECEMBER 31, 2012 Motion carried 5-0. This resolution appears as Resolution No. 10544. Item #9 PUBLIC HEARING REGARDING RESOLUTION ADOPTING SPECIAL ASSESSMENT ROLLS FOR 2010 MAINTENANCE SERVICES AND RESOLUTION ORDERING CURRENT 2012 MAINTENANCE SERVICES; LYNDALE/HUB/NICOLLET MAINTENANCE DISTRICT (STAFF REPORT NO. 169) Council Member Fitzhenry presented Staff Report No. 169. M/Wroge, S/Sandahl to close the public hearing. Motion carried 5-0. M/Fitzhenry, SNVroge that the following resolutions be adopted and that it be made part of these minutes: RESOLUTION NO. 10545 RESOLUTION ADOPTING ASSESSMENT FOR Council Meeting Minutes -6- August 9, 2011 LYNDALE/HUB/NICOLLET (LHN) MAINTENANCE FOR THE PERIOD JANUARY 1 THROUGH DECEMBER 31, 2010 Motion carried 5-0. This resolution appears as Resolution No. 10545. RESOLUTION NO. 10546 RESOLUTION ORDERING UNDERTAKING OF CURRENT SERVICE PROJECT LYNDALE/HUB/NICOLLET (LHN) MAINTENANCE JANUARY 1 THROUGH DECEMBER 31, 2012 Motion carried 5-0. This resolution appears as Resolution No. 10546 Item #10 PUBLIC HEARING REGARDING RESOLUTION ADOPTING STREET RECONSTRUCTION PLAN AND AUTHORIZING ISSUANCE OF STREET RECONSTRUCTION BONDS FOR RECONSTRUCTION OF 76T" STREET EAST FROM 12T" AVENUE TO CEDAR AVENUE (STAFF REPORT NO. 170) Council Member Fitzhenry presented Staff Report No. 170. Acting Public Works Director Asher explained Municipal State Aid is not available. During a City Council Worksession, the City Council consensus was to utilize Street Reconstruction bonds. M/Wroge, S/Sandahl to close the public hearing. Motion carried 5-0. M/Fitzhenry, S/Sandahl that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10547 RESOLUTION OF THE CITY OF RICHFIELD ADOPTING A STREET RECONSTRUCTION PLAN AND AUTHORIZING ISSUANCE OF STREET RECONSTRUCTION BONDS Motion carried 5-0. This resolution appears as Resolution No. 10547. Item #11 PUBLIC HEARING REGARDING RESOLUTION APPROVING FINAL DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT FOR PLANNED UNIT DEVELOPMENT TO INCLUDE FITNESS FACILITY, RETAIL BUILDING AND FUTURE RESTAURANT AND OUTDOOR PATIO AT 6501 LYNDALE AVENUE AND ADJACENT HRA LAND (STAFF REPORT NO. 171) Mayor Goettel presented Staff Report No. 171. Community Development Director Stark stated the developer is no longer identifying a user of the retail space. He added that some stipulations in the resolution may not be amenable to the developer. Council Meeting Minutes -7- August 9, 2011 Tanya Bell, Wellington Management, Inc., suggested a friendly amendment to condition No. 3, second bullet in the resolution, that the developer enter into negotiations to acquire the required HRA land, rather than enter into an agreement to acquire. She added a letter of intent has been submitted. Community Development Director Stark stated there is an uncertainty with staff and the Planning Commission that the HRA parcel would not be developed if the stipulation to enter an agreement to acquire is not included. Council Member Wroge expressed concern that the staff recommendation was to not approve the amended condition because the HRA parcel may not accommodate another development. He added if there is no agreement to purchase with Wellington this key stone property could potentially remain unchanged. Ms. Bell explained Phase I and Phase II of the proposed development, financing impacts and timeline. Council Member Wroge stated the project needs to happen because it's their own financing and there is a significant tax increase with the proposed project. Ms. Bell said if the project jumps the market and built today, some financial assistance would be needed. City Attorney Heine stated it is a customary condition that if the project application includes the HRA parcel, the developer needs control of the land they're seeking to develop. Council Member Elliott stated the developer has made significant changes in the process to keep the project moving along Council Member Wroge said the condition is to acquire the land, not build a building. Ms. Bell responded if there is no building in 2 years, the land could be conveyed to the HRA at no value. Council Member Fitzhenry expressed agreement with Council Member Wroge and Council Member Elliott that the project needs to happen and the parcel is not barren. Acting City Manager Dmytrenko stated staff is doing due diligence, not putting up roadblocks, and also want this development to happen. Ms. Bell suggested language stating good faith negotiations with the HRA to acquire the HRA parcel. The City Council consensus was the condition is to buy the land, not build a building and amend the resolution as suggested by Wellington Management, Inc. M/Wroge, S/Sandahl to close the public hearing. Motion carried 5-0. M/Fitzhenry, S/Sandahl that the following amended resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10548 Council Meeting Minutes -8- August 9, 2011 RESOLUTION APPROVING A FINAL DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT FOR A PLANNED UNIT DEVELOPMENT AT 6501 LYNDALE AVENUE AND THE IMMEDIATELY ADJACENT HOUSING AND REDEVELOPMENT AUTHORITY LAND Motion carried 5-0. This resolution appears as Resolution No. 10548. Item #12 PUBLIC HEARING REGARDING RESOLUTION VACATING PEDESTRIAN, STORM SEWER AND SANITARY SEWER EASEMENTS AT 6501 LYNDALE AVENUE (STAFF REPORT NO. 172) Council Member Sandahl presented Staff Report No. 172. M/Wroge, S/Elliott to close the public hearing. Motion carried 5-0. M/Elliott, S/Goettel that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10549 RESOLUTION AUTHORIZING THE VACATION OF PUBLIC EASEMENTS AT 6501 LYNDALE AVENUE Motion carried 5-0. This resolution appears as Resolution No. 10549. Item #13 PUBLIC HEARING REGARDING RESOLUTION ADOPTING MODIFICATION TO REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA, ESTABLISHING LYNDALE GARDEN TAX INCREMENT FINANCING DISTRICT THEREIN AND ADOPTING TAX INCREMENT FINANCING PLAN THEREFORE (STAFF REPORT NO. 173) Council Member Wroge presented Staff Report No. 173. Kathryn Thomas, Minnesota Life College Executive Director, encouraged the City Council to support the proposed resolution for TIF funding because the Cornerstone Group and Minnesota Life have been in preliminary discussions regarding a new college campus as part of the project. She said the college is soliciting financing with a capital campaign. M/Goettel, S/Wroge to close the public hearing. Motion carried 5-0. Colleen Carey, Cornerstone Group, stated the college is a great fit with the project and she described a possible concept design. She discussed the timeline of the purchase agreement with the property owner and several financing options. Ms. Carey continued with explanations regarding soil remediation work and costs. Council Meeting Minutes -9- August 9, 2011 Council Member Wroge questioned the outcome if the land is so bad that nothing can be built there and a TIF District has been created. He said he would not support the project if the apartment building was not built. Community Development Director Stark explained the geography of the site supports a TIF District and the apartment building can be addressed in the development agreement. Ms. Carey explained the phases of project construction. Council Member Sandahl stated the TIF District is creating a financing mechanism which could allow a development on the site. Community Development Director Stark explained the look-back provision in the development agreement. Mayor Goettel said this is a good-faith project. Council Member Elliott expressed concern that only ideas and concepts have been discussed but nothing concrete has been presented except acquisition and soil costs. M/Wroge, S/Sandahl that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10550 RESOLUTION APPROVING A SPENDING PLAN FOR CERTAIN TAX INCREMENT FINANCING DISTRICTS LOCATED WITHIN THE RICHFIELD REDEVELOPMENT PROJECT AREA Motion carried 5-0. This resolution appears as Resolution No. 10550. Item #14 PUBLIC HEARING REGARDING RESOLUTION APPROVING SPENDING PLAN FOR CERTAIN TAX INCREMENT FINANCING LOCATED WITHIN RICHFIELD REDVELOPMENT PROJECT AREA (STAFF REPORT NO. 174) Council Member Sandahl presented Staff Report No. 174. M/Wroge, S/Sandahl to close the public hearing. Motion carried 5-0. M/Sandahl, S/Fitzhenry that the following resolution be adopted and that it be made part of these minutes: RESOLUTION NO. 10551 RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA; AND ESTABLISHING THE LYNDALE GARDENS TAX INCREMENT FINANCING DISTRICTS THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR Motion carried 5-0. This resolution appears as Resolution No. 10551. Council Meeting Minutes -10- August 9, 2011 Item #15 CITY MANAGER'S REPORT The City Council rescheduled the Wednesday, September 7, 2011 Special City Council Meeting regarding budget discussions to Monday, September 12, 2011 at 5:30 p.m. Item #16 CLAIMS AND PAYROLLS M/Sandahl, S/Wroge that the following claims and payrolls be approved: U.S. Bank 8/09/2011 A/P Checks: 205704-209065 $ 1,059,216.60 Payroll: 77151-77518 $ 550,639.19 TOTAL $ 1,609,855.79 Motion carried 5-0. OPEN FORUM None. ADJOURNMENT The City Council meeting was adjourned by unanimous consent at 9:21 p.m. Date Approved: September 13, 2011 Cheryl Krumholz Recording Secretary Debbie Goettel Mayor Steven L. Devich City Manager J CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special Meeting August 17, 2011 CALL TO ORDER The meeting was called to order by Mayor Goettel at 7:00 p.m in the Council Chambers. ROLL CALL Members Present: Debbie Goettel, Mayor; Sue Sandahl; Fred Wroge; Pat Elliott; and Tom Fitzhenry. Staff Present: Steven L. Devich, City Manager; Karen Barton, Acting Community Development Director; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. Item #1 I CONSIDERATION OF: • BY MOTION, CLOSE MEETING TO CONSIDER LETTER OF INTENT FROM WELLINGTON MANAGEMENT, INC. FOR PURCHASE OF LOT 2, BLOCK 1, HEYMAN ADDITION; • BY MOTION, ACCEPT OR EXTEND A COUNTERPROPOSAL TO LETTER OF INTENT; • BY MOTION, APPROVE FIRST READING OF ORDINANCE PROVIDING FOR SALE OF CERTAIN REAL PROPERTY OF CITY AND SCHEDULE SECOND READING FOR SEPTEMBER 13, 2011; • BY MOTION, PROVIDE CITY'S CONSENT TO INCLUSION OF LOT 2, BLOCK 1, HEYMAN ADDITION IN WELLINGTON'S PLANNED UNIT DEVELOPMENT City Attorney Heine stated the City Council is not required, but under State Statue, can go into closed session to consider the Letter of Intent to purchase City property. Council Member Wroge stated he preferred to have the discussion in an open meeting. M/Sandahl, S/Fitzhenry to qo into closed executive session. Motion carried 4-1. (Wroge opposed.) The City Council recessed the open meeting at 7:04 p.m. to go into closed executive session in the Bartholomew Room.. Council Meeting Minutes -2- August 17, 2011 CLOSED EXECUITVE SESSION The Closed Executive Session was called to order by Mayor Goettel in the Bartholomew Conference Room at 7:07 p.m. Members Present: Debbie Goettel, Mayor; Fred Wroge; Tam Fitzhenry; Sue Sandahl and Pat Elliott. Staff Present: Steven L. Devich, City Manager; Karen Barton, Acting Community Development Director; Corrine Heine, City Attorney; and Cheryl Krumholz, Recording Secretary. The Closed Executive Session was convened pursuant to M.S. 13D.05 The Closed Executive Session was adjourned by unanimous consent at 8:02 p.m. in the Bartholomew Conference Room. The Open Session was called to order by Mayor Goettel at 8:03 p.m. in the Council Chambers. Council Member Sandahl presented the City's counter proposal to the Letter of Intent - Price: $50,000 in cash, letter of credit or bond. Additional conditions -buyer: insert "restaurant/" before the words "retail building" in the Letter of Intent. Amend the second to last sentence to end after the word "area" and strike the remaining portion of sentence. Strike the last sentence completely. Additional conditions, seller: The City will refund $49,999 if the construction of the corner restaurant/retail building date of September 2014 is met. The Letter of Intent should delete references to the HRA and change it to the City. Steve Wellington, Wellington Management, Inc., requested confirmation that the City agrees to work together to submit a grant application as indicated in the Letter of Intent. He agreed the refundable funds based on performance was an additional incentive and the restaurant was a key objective. The City Council agreed to assist with the grant application. Council Member Sandahl stated, that as HRA Chair, the HRA would also support a grant application. Mr. Wellington expressed agreement with the counterproposal made by the City. M/Goettel, S/Wroge to extend a counterproposal to the letter of intent; and approve first reading of an ordinance providing for the sale of certain real property of the city and schedule second reading for September 13, 2011; and provide the City's consent to the inclusion of Lot 2, Block 1. Hevman Addition in Wellinaton's planned unit development for the site and the adjacent former Kmart site. The City Council thanked Mr. Wellington for choosing Richfield for his development. Council Meeting Minutes -3- August 17, 2011 Motion carried 5-0. ADJOURNMENT The open meeting was adjourned by unanimous consent at 8:13 p.m. Date Approved: September 13, 2011 Cheryl Krumholz Recording Secretary Debbie Goettel Mayor Steven L. Devich City Manager AGENDA SECTION: CONSENT AGENDA ITEM # SA REPORT # 176 r STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Continue the public hearing to consider the vacation of an easement at 6401 Lyndale Avenue to Se tember 27, 2011. I. RECOMMENDED ACTION: By Motion: Continue the public hearing to consider the vacation of an easement at 6401 L ndale Avenue to Se tember 27, 2011. II. BACKGROUND There remains a few outstanding housekeeping items related to the Plaza on Lyndale apartment project that must be considered and approved by the City Council. In an effort to consolidate all of the approvals into a single meeting, consideration of this item has been continued to September 27, 2011. III. BASIS OF RECOMMENDATION A. POLICY • None B. CRITICAL TIMING ISSUES • 60-DAY RULE: The 60-day clock `started' when a complete application was received on August 19, 2011. A decision is required by October 18, 2011 OR the Council must notify the applicant that it is 091311 - 6401 Lyndale easement vacation MELISSA POEHLMAN, CITY PLANNER extending the deadline (up to a maximum of 60 additional days or 120 days total) for issuing a decision. C. FINANCIAL • The required application processing fee has been paid. D. LEGAL • Legal and mailed notice have been and/or will be sent in accordance with State and Local requirements. E. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATNE RECOMMENDATION(S~ • None V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None AGENDA SECTION: CONSENT AGENDA ITEM # SB REPORT # 177 ~~' STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: d d CHRIS REGIS, FINANCE MANAGER NAME, TITLE ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution declaring costs to be assessed for unpaid false alarm user fees a ainst private prope I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution declaring costs to be assessed and ordering the preparation of the proposed assessment roll for unpaid false alarm user fees against private property and setting the public hearing date for October 11.2011. II. BACKGROUND • Alarm users fees must be paid to the City within 30 days from the date of written notice by the City to the alarm user. Fees not paid within the time specified will be subject to a 10% penalty charge. • The special assessment for unpaid false alarm user fees from private properties is to recover costs incurred by the City in connection with the response by public safety to an alarm call on certain properties in the City that turns out to be false. III. BASIS OF RECOMMENDATION A. POLICY • Richfield City Code section 915.07 Subd. 3 and chapter 8.02 of the City Charter allows the City to specially assess delinquent false alarm user fees against the respective properties. • Minnesota State Statutes provide that the City may levy a special one- yearassessment for these costs. Notice of the certification will be published in the Sun Current September 22, 2011. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • A 10% penalty charge is applied to all properties which have not paid within the time specified. • The proposed special assessment for unpaid false alarm user fees from private property is $1,540.00 with an additional 6% interest charge on the assessment. • The affected property owner may prepay the original principal amount without interest within 30 days from the date the Council adopts the assessment, scheduled for October 11, 2011. If the original principal amount is not paid, the assessment will be charged 6% interest. D. LEGAL • No legal issues are apparent at this time. The City Attorney will be in attendance at the Council meeting should a legal question arise. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • Do not approve the attached resolutions and have the costs absorbed by the city. V. ATTACPIlVIENTS • Resolution declaring costs to be assessed and ordering preparation of proposed assessment for unpaid false alarm user fees from private property. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. RESOLUTION NO. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR UNPAID FALSE ALARM FEES FROM PROVATE PROPERTY. WHEREAS, costs have been determined for unpaid false alarm fees from private properties in the City of Richfield in the amount of $1,540.00. Unpaid False Property Address Property ID Number Alarm Fee 1700 West 78th Street 33-028-24-34-0012 220.00 2120 W 63rd Street 28-028-24-22-0002 110.00 3000 West 66th Street 29-028-24-13-0083 110.00 6310 S Penn Ave 29-028-24-11-0003 220.00 6613 S Penn Ave 28-028-24-32-0064 220.00 6915 South 10th Ave S 26-028-24-34-0047. 110.00 7005 Columbus Ave S 35-028-24-22-0086 110.00 7034 S CedarAve 35-028-24-11-0010 110.00 7305 S 5th Ave 34-028-24-14-0035 110.00 7644 Lyndale Ave S 33-028-24-44-0115 110.00 7733 S Portland Ave S 35-028-24-33-0008 110.00 Total $1,540.00 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The total cost to be assessed against benefited property owners is declared to be $1,540.00. 2. The City Clerk shall forthwith calculate the proper amount to be specially assessed for costs incurred against each benefited property, and shall file a copy of such proposed assessment in her office for public inspection. 3. The Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. 4. A hearing shall be held on the 11th day of October, 2011 in the City Hall Council Chambers at 7:00 p.m., or as soon as hereafter as it may be reached on the agenda, to pass upon such proposed assessment and at such time and place all persons owning property affected by the unpaid false alarm fee assessment will be given an opportunity to be heard in reference to such assessment. 5. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment at least two weeks prior to the hearing and shall state in the notice the total cost of the unpaid false alarm fees. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted by the City Council of the City of Richfield this 13th day of September, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk Hl7J,,1V 1JH J!/1. 11V1V: l.V1V a1=,N1 AGENDA ITEM # SC REPORT # 178 J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13,2011 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SI ATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution declaring costs to be assessed for current services performed for weed elimination from private property and removal or elimination of public health or safe hazards from private prope RECOMMENDED ACTION: By Motion: Adopt the attached resolution declaring costs to be assessed and ordering the preparation of the proposed assessment roll for weed elimination from private property and removal or elimination of public health or safety hazards from private property and setting. the public hearing date for October 11. 2011. IL BACKGROUND • The special assessment for elimination of public health or safety hazards from private properties is for costs incurred by the City in connection with abatement of these hazards on certain properties in the City, which are not properly maintained. • The owners of the subject properties are notified by the City to correct the public health or safety hazards and have failed to do so within the proper timeframe. • The property owners were notified that if the public health or safety hazards were not abated within the proper time limit, the City would take the corrective action necessary and bill the property owner. • Finally, each year the City utilizes City Public Works staff to cut weeds on certain properties in the City not maintained by the owners. If the owner fails to cut the weeds in a timely manner after notification by the City, the City undertakes the weed destruction and bills the property owner for the service. • In all cases, property owners will be notified that any unpaid charges of fees may be assessed against the property. III. BASIS OF RECOMMENDATION A. POLICY • The nuisance properties were not maintained by the owners and the City incurred costs to abate the nuisance. • Minnesota State Statutes provide that the City may levy a special one- yearassessment for these costs. • Notice of the certification will be published in the Sun Current September 22, 2011. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • The proposed special assessment for the elimination of public health or safety hazards from private property is $9,165.24 with an additional 6% interest penalty. • The proposed special assessment for weed elimination from private property is $13,045.13 with an additional 6% interest penalty. • Costs incurred for city staff time in the clean up of the properties or to remove the weeds are included in the special assessment amount. • A $50.00 administrative fee is charged to all properties. • The affected property owner may prepay the original principal amount without interest within 30 days from the date the Council adopts the assessment, scheduled for October 11, 2011. If the original principal amount is not paid, the assessment will be charged 6% interest. D. LEGAL • No legal issues are apparent at this time. The City Attorney will be in attendance at the Council meeting should a legal question arise. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Do not approve the attached resolutions and have the costs absorbed by the City. V. ATTACHIVIENTS • Resolution declaring costs to be assessed and ordering preparation of proposed assessment for weed elimination from private property, and removal or elimination of public health or safety hazards from private property. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. 5C-I RESOLUTION NO. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR WEED ELIMINATION FROM PRIVATE PROPERTY AND REMOVAL OR ELIMINATION OF PUBLIC HEALTH OR SAFETY HAZARDS FROM PROVATE PROPERTY. WHEREAS, costs have been determined for weed elimination and removal or elimination of public health or safety hazards from private properties in the City of Richfield and the expenses incurred or to be incurred for such work ordered amount to $22,210.37. Public Health or Weed Safety Property Address Property ID Number Elimination Hazards 10 67th Street E 27-028-24-42-0104 230.00 - 6220 Stevens Ave S 27-028-24-12-0045 170.00 - 6244 Oliver Ave S 28-028-24-22-0005 - 683.00 6315 16th Ave S 26-028-24-11-0034 170.00 290.00 6332 1st Ave S 27-028-24-12-0025 170.00 - 6400 Washburn Ave S 29-028-24-13-0012 340.00 - 6405 Vincent Ave S 29-028-24-13-0049 400.00 - 6412 Portland Ave 27-028-24-14-0002 230.00 - 6445 15th Ave S 26-028-24-13-0041 170.00 - 6530 14th Ave S 26-028-24-13-0137 170.00 - 6535 Newton Ave S 28-028-24-23-0109 340.00 140.00 6617 Sheridan Ave S 29-028-24-41-0047 320.00 - 6701 4th Ave S 27-028-24-41-0090 170.00 - 6721 Bloomington Ave S 26-028-24-41-0049 340.00 - 6727 Chicago Ave S 26-028-24-31-0069 170.00 - 6732 Chicago Ave S 26-028-24-32-0098 510.00 - 6809 3rd Ave S 27-028-24-44-0082 230.00 - 6809 Portland Ave S 26-028-24-33-0130 170.00 - 6821 Cedar Ave S 25-028-24-33-0059 - 470.00 6901 13th Ave S 26-028-24-43-0067 170.00 - 6901 Vincent ave S 29-028-24-43-0165 230.00 - 6907 Knox Ave S 28-028-24-34-0081 400.00 - 6915 Columbus Ave s 26-028-24-33-0040 170.00 - 6920 10th Ave S 26-028-24-34-0100 170.00 - 6932 Portland Ave S 27-028-24-44-0085 170.00 - 7012 Portland Ave S 34-028-24-11-0072 170.00 - 7021 Upton Ave S 32-028-24-12-0005 510.00 - 7144 4th Ave S 34-028-24-11-0044 510.00 200.00 7200 Nicollet Ave S 34-028-24-24-0001 510.00 - 7211 Lyndale Ave S 34-028-24-23-0105 170.00 - 7301 Grand Ave S 34-028-24-23-0149 170.00 - 7314 1st Ave S 34-028-24-13-0011 170.00 - 7334 Cedar Ave S 35-028-24-14-0116 400.00 - 7340 Lyndale Ave S 33-028-24-14-0006 340.00 - 7400 3rd Ave S 34-028-24-42-0001 170.00 - 7427 Pillsbury Ave S 34-02824-31-0044 170.00 - 7433 Xerxes Ave S 32-028-24-42-0075 340.00 210.00 7544 2nd Ave S 34-028-24-42-0104 340.00 1,110.24 7611 16th Ave S 35-028-24-44-0013 150.00 100.00 7615 11th Ave S 35-028-24-34-0020 340.00 4,875.00 7615 16th Ave S 35-028-24-44-0014 510.00 - 7620 Park Ave 7626 12th Ave S 7632 Oakland Ave S 7638 11th Ave S 7700. Nicollet Ave S 7708 Upton Ave S 35-028-24-33-0022 35-028-24-34-0011 35-028-24-33-0042 35-028-24-34-0029 34-028-24-34-0065 32-028-24-43-0090 Total ~~' 340.00 125.00 170.00 600.00 1, 090.00 - 170.00 362.00 285.13 - 410.00 - $13,045.13 $9,165.24 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The total cost to be assessed against benefited property owners is declared to be $22,210.37. 2. The City Clerk shall forthwith calculate the proper amount to be specially assessed for such work against each benefited property, and shall file a copy of such proposed assessment in her office for public inspection. 3. The Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. 4. A hearing shall be held on the 11th day of October, 2011 in the City Hall Council Chambers at 7:00 p.m., or as soon as hereafter as it may be reached on the agenda, to pass upon such proposed assessment and at such time and place all persons owning property affected by the weed elimination and/or removal of public health or safety hazards assessment will be given an opportunity to be heard in reference to such assessment. 5. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment at least two weeks prior to the hearing and shall state in the notice the total cost of the weed elimination and the removal or elimination of public health or safety hazards. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted by the City Council of the City of Richfield this 13th day of September, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: CONSENT AGENDA ITEM # SD REPORT # 179 ~~' STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: MELISSA POEHLMAN, CITY PLANNER NAME, TITLE DEPARTMENT DIIZECTOR REVIEW: S/GNATURE ~Jt REVIEWED BY CITY MANAGER: s ITEM FOR COUNCIL CONSIDERATION: Conduct a first reading of an ordinance amending the City's Zoning Ordinance. The proposed ordinance will clarify which uses are considered "conditional uses" in the various mixed use districts. This than a is a clarification as op osed to a olicy than e. I. RECOMMENDED ACTION: By Motion:- Approve a first reading of an ordinance amending Subsection 537.05, Subdivision 1~of the Richfield City Code related to conditional uses in the mixed use districts. II. BACKGROUND The section of the Zoning Code related to the mixed use districts includes a table detailing whether particular uses are considered permitted, conditionally permitted, permitted as an accessory use, or prohibited. Stipulations related to the conditionally permitted uses are listed in the subsection following this table (537.05); however, the introductory sentence to the subsection causes confusion and has lead to residents/property owners to believe that the uses listed are conditionally permitted in all of the mixed use districts, as opposed to those listed in the preceding table. It seems that the word "or" is in fact being read as "and" in the following statement: "The uses listed in this subsection are conditional uses in the MU-R, MU-C or MU-N Districts and..." 091311 - 1st Reading Ord Amend: MU conditional uses The proposed change removes this language in favor of more standard ordinance text. No changes to use permissions are proposed. III. BASIS OF RECOMMENDATION A. POLICY • Clear and concise ordinances that describe the process for land use approvals are essential to good customer service and consistent application of the zoning ordinance. B. CRITICAL TIMING ISSUES • None C. FINANCIAL • None D. LEGAL • A public hearing was held before the Planning Commission on August 22, 2011. • Notice of the public hearing was published in the Sun Current in accordance with State and Local requirements. • The Planning Commission recommended approval of the attached ordinance (5-0). • A second reading is scheduled for September 27, 2011. • If approved, the proposed changes become effective 30 days following publication in the Sun Current Newspaper. E. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION~S~ • Approve a first reading of the proposed ordinance with additional changes. • Deny a first reading of the proposed ordinance. V. ATTACHMENTS • Ordinance Current Code Subsections 537.03 and 537.05 (partial) for context VI. PRINCIl'AL PARTIES EXPECTED AT MEETING • None 54-I BILL NO. AMENDMENT TO RICHFIELD CITY CODE RELATED TO ZONING AMENDING SUBSECTION 537.05, SUBDIVISION 1 RELATED TO CONDITIONAL USES IN THE MIXED USE DISTRICTS THE CITY OF RICHFIELD DOES ORDAIN: Section 1 Subsection 537.05, Subdivision 1 of the Richfield City Code is amended to read as follows: 537.05. Conditional Uses. Subdivision 1. ,-"° „°°~ lip+°,+ ;,, +";~ nn ~~cn+ic crvn-a~~C~~ ~ .+ I ~ ~e$-1 ~-rt~e,~ A I I Q ~ A I I _ (` ~,C-I~~,,,1~ Irrv'~T~t~S-urea Conditional uses listed in Table 1 are subject to the conditional use permit provisions outlined in Subsection 547.09 of this code and the following conditions. Section X This Ordinance is effective in accordance with Section 3.09 of the Richfield City Charter. Passed by the City Council of the City of Richfield, Minnesota this 27th day of September, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 091311 - 1st Reading Ord Amend: MU conditional uses 5~J-2- Kichtield City Code (Zoning) MU District X37.03 537.03. Permitted Uses. Subdivision 1. The following table establishes permitted, conditionally permitted and accessory uses for the Mixed Use Districts. Table 1. Uses of the Mixed-Use District The following abbreviations are used within the use table: P= permitted use A= accessory use C= conditionally permitted N= not permitted Use MU-R MU-C MU-N COMMERCIAL Regional retail services P C N General retail services P P C Neighborhood retail services P P P Restaurant Class I (servin > alcohol) P C N Restaurant Class II (traditional/cafeteria) P P P Restaurant Class III (fast food/convenience) C C N Restaurant Class I V (take out onl) P P P Service Station /convenience store P P N Convenience store P P P Offices and clinics P P A Hotel/motel (defined as 6 or more rooms) P P N Mortuaries and funeral cha els N P N Health or athletic clubs, spas, yoga studios P P N Theaters, movie or live entertainment P N N Auto sales or lease -new vehicles C N N Auto mechanical or body repair shops C C N Auto detailin C C N Auto rental facilities accessory to a primary office or hotel use A A N Assembly and manufacturing accessory and subordinate to a -•etail use A A N Drive-u window or teller service C C N Adult business establishments as defined and regulated under Subsection 1196 of the City Code P P N Firearms related uses C N N Licensed day care facilities P P P RESIDENTIAL Dwelling>> townhouse N N P Dwelling, multi-family (min. 3 units) P P P (but see 53 7.07. Subd. 2a) Live -work units N P P Assisted Irvin r facilities, nursing, rest homes N P P Richfield City Code 537-3 5h~~ Richfield City Code (Zoning) MU District 537.03, Subd. 1 (cont.) Use MU-R MU-C MU-N INSTITUTIONAL/PUBLIC Places of worshi A P P Government offices A P A Police sub-station P P P Schools C P P Library N P P Parks P P P Hospitals P N N Transit facilities A A A Public utility A A A (Amended, Bill No. 2011-13) Subd. 2. Any land use not listed as Permitted, Accessory or Conditional in this section or- Subsection 512.09 is prohibited in the Mixed-Use Districts unless the use is found to be substantially similar to a use listed, as determined by the City in accordance with Subsection X09.23 of this Code. 537.05. Conditional Uses. Subdivision 1. 'The uses listed in this subsection are conditional rises in the MU-R, MU-C or MU-N Districts and are subject to the conditional use permit provisions outlined in Subsection 547.09 of this code and the following conditions. Subd. 2. Regional retail services in MU-C. Regional retail services in the MU-C district provided that retail uses with over 50.000 square feet of gross floor area, are located within amulti-tenant or multi-use shopping area or other multi-tenant development and meet the mixed use requirements of Subsection 537.07, Subd. 2. Subd. 3. General retail services in MU-N. General retail services in the MU-N district provided the following conditions are met: The retail uses front on an arterial street and meet the area requirements of Subsection 537.07, Subd. 2. Subd. 4. Restaurant Class I in MU-C. Class I restaurants in the MU-C district provided that alcoholic beverages shall not be served unless the lot abuts an arterial or collector street. Subd. 5. Restaurant Class III or Drive-U~ Window or Teller Service. Uses with drive-up window or teller service provided the following conditions are met: a) No drive-up window or lane shall be adjacent to a public street; b) Drive-up uses shall be limited to one service window which is part of a primary structure and no more than two queuing lanes, unless approved along with additional landscaping, screening, or other improved pedestrian amenities such as fencing, seating, raised pedestrian crossings, etc; c) Drive-up must be part of amulti-tenant mixed-use development. Freestanding buildings shall not have drive-up facilities unless they are designed to minimize impacts to the pedestrian environment and adequately address circulation issues and potential noise or light pollution; Richfield City Code 537-4 AGENDA SECTION: CONSENT AGENDA ITEM # SE REPORT # 180 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: MELISSA POEHLMAN, CITY PLANNE NAME, T/TLE DEPARTMENT DIRECTOR REVIEW: SIGNATU REVIEWED BY CITY ~ - ~ ~ ~. MANAGER: ~._ _ }~ ITEM FOR COUNCIL CONSIDERATION: First reading of an ordinance rezoning properties located at 6401 Lyndale Avenue, 515 64th Street West and 521 64th Street West from C-2 (General Commercial) and R (Single-Family Residential) to PMR (Planned Multi-Family Residential). This item was previously unanimously approved in September 2010. I. RECOMMENDED ACTION: By Motion: Approve a first reading of an ordinance rezoning properties located at 6401 Lyndale Avenue, 515 64th Street West and 521 64th Street West from C-2 (General Commercial) and R (Single- Family Residential) to PMR (Planned Multi-Family Residential). II. BACKGROUND On September 14, 2010 the City Council approved the rezoning of properties at the corner of 64th Street West and Lyndale Avenue for the construction of a new apartment building. At that time, the developer, Michael Development, asked that the rezoning not be published -and therefore not be effectuated -until funding was secured for the project. The Council agreed to this, but included a stipulation that the approval would expire after nine months. Michael Development is now ready to proceed with the project, as indicated by the submittal of revised plans (approved by the Council on August 9th); however, the ordinance authorizing the change in zoning expired on June 14th. The attached ordinance constitutes re-approval of the change in zoning and includes minor 091311 - 1st Reading RZN Lyndale Commons properties revisions updating the number of apartment units to 94 and the number of parking stalls to 136. III. BASIS OF RECOMMENDATION A. POLICY • The properties currently occupied by the retail strip center (Market Plaza) and the smaller retail building to the north are zoned C-2 (General Commercial). The Housing and Redevelopment Authority (HRA) property is currently zoned R (Single-Family Residential), a designation that is not consistent with the Comprehensive Plan. • All three properties are designated as "Mixed Use" in the Comprehensive Plan. • The applicant proposes to rezone all three properties to PMR (Planned Multi-Family Residential). This designation would be consistent with the Comprehensive Plan. B. CRITICAL TIMING ISSUES • A public hearing will be held before the Planning Commission on September 26, 2011. Although unorthodox to hold the public hearing after the first reading by the Council, the specific circumstances of this proposal (specifically the fact that amended plans were just approved by the Planning Commission and Council in June and July) warrant expediency. • Zoning changes become effective 30 days following publication. In order for construction to begin this year, it is imperative that this approval be processed as quickly as possible. C. FINANCIAL • N/A D. LEGAL • A public hearing will be held before the Planning Commission on September 26, 2011. • Notice of the public hearing will be published in the Sun Current Newspaper and sent to residents and property owners within 350 feet of the affected parcels. E. ENVIlZONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Deny a first reading of the proposed ordinance. The project cannot proceed without rezoning. ~ V. ATTACI-IMENTS ~ Urclinance Planning & land use maps VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Michael Development representative(s) ~~-I BILL NO. 2011- AMENDMENT TO SECTION APPENDIX 1 OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD (Lyndale Commons Planned Unit Development Plan and Rezoning) THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Findings of Fact. The City Council hereby makes the following findings of fact: A. The City's zoning ordinance .establishes zoning classifications for individual property. The properties located. at 6401 Lyndale Avenue, 515 64t" Street West and 521 64th Street West are zoned C-2 (general commercial) and R (single family residential) [the "subject area"]. B. Michael Development has submitted an application to the City for a planned unit development plan [the "PUD plan"] in the subject area. The PUD plan proposes to construct 94 residential units and 136 parking stalls. C. The City has reviewed the zoning ordinance and determined that it would be appropriate to rezone the subject area as PMR (planned multi-family residential) and approve the PUD plan to establish the regulations governing the PMR district. D. The Planning Commission has conducted a public hearing concerning the PUD plan and amending the zoning ordinance in the subject area. The Planning Commission recommended approval of the PUD plan and zoning ordinance amendment on June 27, 2011 and September 26, 2011 following a public hearing. The City Council considered the PUD plan on July 12, 2011, followed by a first reading of the rezoning on September 13, 2011 and second reading on September 26, 2011. E. The City's zoning ordinance provides criteria for approving a PUD plan and rezoning of property to a planned unit development. The City Council finds that the PUD plan and rezoning of property in the subject area meets the criteria in the following ways: 1) The proposed development conforms with the goals and objectives of the City's Comprehensive Development Plan and any applicable redevelopment plans: a) -The City's Comprehensive Plan designates these properties as part of a larger mixed use district encompassing the 66th Street and Lyndale Avenue Area. b) The Comprehensive Plan describes the intent in this area "is to continue the expansion of the city center ~~/~ area by incorporating residential housing at 50+ units per acre..." c) The PUD plan and rezoning are also consistent with the following Comprehensive Plan Houisng Policy: "Encourage the creation of `move-up' housing through new construction and home remodeling." d) The PUD plan and rezoning are consistent with the Comprehensive Plan goal to, "Ensure sufficient diversity in the housing stock to provide for a range of household sizes, income levels and needs." 2) The proposed development is designed in such a manner as to form a desirable and unified environment within its own boundaries: The building is designed to provide on-site amenities like greenspace and parking to the residents. The proposal also connects the site to the neighborhood through sidewalk connections. 3) The development is in substantial conformity with the purpose and intent of the original MR-3 zoning district, and departures from the original district regulations are justified by the design of the development. Setbacks have been reduced to provide for a more interesting building design, the incorporation of a large plaza area to be visible from Lyndale Avenue and to maximize tree preservation and usable green space. 4) The development will not create an excessive burden on parks, schools, streets, or other public facilities and utilities which serve or are proposed to serve the development: Right turns onto 64t" Street from the development will be prohibited to minimize traffic in the adjacent neighborhood and utilities will be upgraded to accommodate the new building. Greenspace, including atot lot, will be provided for use by the residents. The development also sets aside an area for an enhanced transit facility to serve the neighborhood as a whole. 5) The development will not have undue adverse impacts on neighboring properties: Traffic in the neighborhood will be minimized by prohibiting right turns out of the development. This movement is not currently prohibited from the commercial development. The site has been designed to locate the building closer to Lyndale Avenue and farther from the single-family properties to the east. The parking lot will be screened with a privacy fence and landscaping. 6) The terms and conditions proposed to maintain the integrity of the plan are sufficient to protect the public interests: A final development plan, which establishes the terms and conditions of the development, is required before construction can commence. Section 2. Appendix 1 of the zoning ordinance code of the City of Richfield entitled "Richfield Zoning Code: Boundaries of Zoning Districts" is hereby amended: A. Section 3, Paragraph (26) is amended to read as follows: -~ (26) M-5 (E of Lyndale between 64th and 65th) Lots 3 through 5 and Lots 418 through 20, Block 6, Lyndale Oaks Addition except for the Northwesterly 25 feet of Lot 18; and Lot 2, Block 2, J.N. Hauser's Second Addition. (Amended, Bill No. ). B. Section 8, new paragraph (6) is added to read as follows: (6) M-5 (Southeast corner of Lyndale Avenue and 64t" Street West) Lots 10 through 17 and the Northwesterly 25 feet of Lot 18, Block 6, ~ndale Oaks Addition, together with that part of the vacated alley that accrued to said Lots by reason of the vacation thereof. (Added, Bill No. ). Section 3. This amendment constitutes a rezoning of the following property: R to PMR: 515 64th Street West C-2 to PMR: 6401 Lyndale Avenue South and 521 64th Street West Section 4. This ordinance is effective in accordance with Section 3.09 of the Richfield City Charter. Passed by the City Council of-the City of Richfield, Minnesota this 14th day of September, 2010. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk LYNDALE COMMONS PROJECT PROPOSAL 7/10 Surrounding Comprehensive Plan Designations ~~ MIXED MIXED 3 ~ ~~r MHD MHD LDR LDR LDR LDR LD MHD MHD MHD MHD LDR LDR LDR LDR 64TH STREET WEST MIXED LDR DR PROPOSED P R ZO ING MIXED MIXED MIXED LDR R ~~ MIXED ~Q MIXED LDR DR 9 ~ ~ 9L~. MIXED LDR LDR ~'G ~, MIXED ~ \ MIXED IMIXE `MIXED M MIXED MIXED MIXED MIXED 0 62.5 125 250 375 500 Feet L LEGEND CC -Community Commercial LDR -Low-Density Residential MHD -Medium-High Density Residential MIXED -Mixed Use I:\GIS\Community Development\StafflMelissa\Projects\Zoning Cases\Lyndale Commons - CP.mxd ~~v ~ VIONS PROJECT PROPOSAL 7/10 Surrounding Zoning C-2 MR-3 R C_2 R i C-2 MR-1 MR-1 MR-1 R R R 3S~Fl 64TH STREET WEST PROPOSED P R ZO ING R PC-2 C-2 R R C-2 ~~~0 R 9~F ~~F R ~GF PC-2 C-2 C-2 MR-3 c-2 C-2 R MR-1 R R R R R R R R C-2 /I R 0 62.5 125 250 375 500 Feet ~ I:\GIS\Commu LEGEND R -Single-Family Residential MR-1 -Two-Family Residential MR-2 -Multi-Family Residential MR-3 -High-Density Multi-Family Residential PMR -Planned Multi-Family Residential C-2 -General Commercial PC-2 -Planned General Commercial ~lissa\Projects\Zoning Cases\Lyndale Commons - Z.mxd AGENDA SECTION: CONSENT AGENDA ITEM # SF REPORT # 181 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ELIZABETH FINNEGAN, CIVIL ENGINEER NAME, TITLE ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached reimbursement resolution and hiring Howard R. Green to prepare plans, and perform construction services for the reconstruction of 76th Street East (from 12th Avenue to Cedar Avenue). I. RECOMMENDED ACTION: By Motion: 1. Adopt the attached resolution authorizing City staff to incur cost for the reconstruction of 76t" Street East (from 12t" Avenue to Cedar Avenue). 2. Approve the hiring of Howard R. Green to perform Engineering Services for the 76t" Street East Reconstruction Project for a fee not to exceed $300,000. II. BACKGROUND On August 9, 2011 the City Council approved a Five Year Street Reconstruction Plan and the use of street reconstruction bonds for the reconstruction of 76tH Street East from 12th Avenue to Cedar Avenue. Adoption of the attached resolution will enable City staff to begin incurring development costs for the street improvements. 0913201176thStEast The Engineering firm of Howard R. Green has submitted a proposal to provide the engineering and inspection services for the reconstruction of 76th Street East ProJ'ect in an amount not to exceed $300,000 without further written staff authorization. Howard R. Green is in the City's Engineering Consultant Pool and is an experienced engineering firm that also completed the plans, specifications and construction services oversight on the 2010-2011 Metro Sewer Project. III. BASIS OF RECOMMENDATION A. POLICY • The proposed 76 Street East Reconstruction project is consistent with the City's Comprehensive Plan (Transportation). B. CRITICAL, TIMING ISSUES • 76 Street east of 12 Avenue is in need of reconstruction. • In order to complete plan set to provide for 2012 reconstruction the design should begin as soon as possible. • Adoption of the proposed reimbursement resolution provides approval for City staff to incur costs for the reconstruction of the 76 h Street East project only. • The current estimates for the project are: o Construction $1,500,000 o Engineering $ 330,000 (H.R. Green + Staff time) o Contingency $ 182,500 o Bond fees/interest $ 137,500 Total $2,150,000 D. LEGAL • The ity Attorney will be available to answer questions. E. ENVIRONMENTAL CONSIDERATIONS • The project will replace old storm, water, and sanitary sewer mains. IV. ALTERNATIVE RECOMMENDATION(S) -I • ~ ne City Council may choose to postpone the adoption of the proposed reimbursement resolution and direct staff on how to proceed. However, postponing the adoption may affect the bid prices and/or year of reconstruction. • Council could choose not to hire H.R. Green and do a request for proposal for another engineering firm to provide their services for this project. However, staff believes that H.R. Green is qualified to perform the work at a reasonable cost. TTACI-IlVIENTS • Keimaursement Kesolution • Proposal from Howard R. Green VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None 0913201176thStEast 5F- ~ RESOLUTION NO.- DECLARING THE OFFICIAL INTENT OF THE CITY OF RICHFIELD TO REIMBURSE CERTAIN EXPENDITURES FROM THE PROCEEDS OF BONDS TO BE ISSUED BY THE CITY WHEREAS, the Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the "Reimbursement Regulations") providing that proceeds of tax-exempt bonds used to reimburse prior expenditures will not be deemed spent unless certain requirements are met; and WHEREAS, the City of Richfield expects to incur certain expenditures that may be financed temporarily from sources other than bonds, and reimbursed from the proceeds of tax-exempt bonds; and WHEREAS, the City has determined to make this declaration of official intent ("Declaration") to reimburse certain costs from proceeds of bonds in accordance with the Reimbursement Regulations. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. The City proposes to undertake certain capital improvements for reconstruction of 76t" Street East-12t" Avenue to Cedar Avenue (the "Project"). 2. The City reasonably expects to reimburse the expenditures made for certain costs of the Project from the proceeds of bonds in an estimated maximum principal amount of $2,150,000. All reimbursed expenditures will be capital expenditures, costs of issuance of the bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement Regulations. 3. This Declaration has been made not later than 60 days after payment of any original expenditure to be subject to a reimbursement allocation with respect to the proceeds of bonds, except for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000 or 5 percent of the proceeds of an issue; or (c) "preliminary expenditures" up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City to finance the project for which the preliminary expenditures were incurred. The term "preliminary expenditures" includes architectural, engineering, surveying, bond issuance, and similar costs that are incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commencement of construction. 4. This Declaration is an expression of the reasonable expectations of the City based on the facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for the Project and the principal amount of the bonds 0913201176thStEast ~ ~~ ~- described in paragraph 2 are consistent with the City's budgetary and financial circumstances. No sources other than proceeds of bonds to be issued by the City are, or are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to the City's budget or financial policies to pay such Project expenditures. 5. This Declaration is intended to constitute a declaration of official intent for purposes of the Reimbursement Regulations. Adopted by the City Council this 13th day of September, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk 0913201176thStEast I" ~' 76"' Street from 12th Avenue to Cedar Avenue Reconstruction Project City of Richfield, MN SC®PE ®F Vii®RK Project Understanding The City of Richfield (City) has contracted HR Green Inc. (HR Green) for the 76~ Street from 12~ Avenue to Cedar Avenue Reconstruction project. The project is approximately 2600 feet long and will include sanitary sewer, watermain, storm sewer, lighting and street reconstruction. The project will adhere to Minnesota Department of Transportation (MnDOT) State rlid for Local Transportation standards. HR Green will begin control and topographic survey immediately and will begin design services on September 14, 2011 after the Citq Council approves the contract. Preliminary and Final Design tasks will be completed in the spring of 2012 and the Construction Phase will begin after the construction contract is awarded. Substantial completion of the construction phase is expected in late fall of 2012. This schedule was prepared to include reasonable allowances for review and approval rimes required by the City and public authorities having jurisdiction over the project. This schedule shall be equitably adjusted as the project progresses, allowing for changes in the scope of the project requested by the City or for delays or other causes beyond the control of HR Green. Task 1-Conceptual Phase The conceptual design from the previous 76~ Street project to the west of this project will be used. HR Green will not develop a conceptual design for this project. Because the conceptual design of the proposed improvements have been established; HR Green's Conceptual Phase includes the following items only: 1.1 Project Management • ' HR Green will develop a detailed work plan with specific staff assignments and establish a project schedule indicating critical dates, milestones, and deliverables • HR Green will hold a kickoff meeting with City staff to discuss the scope and schedule of the project. HR Green will also hold an internal team kickoff meeting to review the project requirements with:all _ staffmvolved. 1.2 Survey 1.2.1 Horizontal and Vertical Control Surveys HR Green will establish horizontal and vertical control necessary to complete the survey items identified within this Scope of Services (SOS). Horizontal and_ vertical control will. be established based on the current Hennepin County datum and coordinate system. 1.2.2 Topographic Survey HR Green will complete a topographic survey to supplement utility information provided by others. Survey will be completed from approximately building face to building face or to nearest permanent structure, such as a private fence, along the proposed project limits. A Gopher State One Call will be eompleted for tl-ie project Iirriifs: Survey will locate surface features and marked public and private utilities necessary to establish the existing conditions base map. 1.2.3 Base IVlapping HR Green will compile infommation obtained from the above scope items, along with information provided by others to prepare the existing conditions base map. The base map will be utilized as the starring point for completing the design and acquisition items of this project. The base map will identify, ownership, property lines, topographic survey information, soil borings, and easements. Items will be established on Hennepin County's elevation datum and coordinate system. 1.2.4 Structure Survey HR Green will complete a structure survey of all the sanitary sewer and drainage structures along the project corridor to obtain strucriue type and condition pipe inverts of the existing systems. This information will be included on the base mapping for the project. Scope of Worle i--#RGi'eei't 5F"'~ 76t" Street from 'i2t" Avenue to Ceciar Avenue Reconstruction Project City of Richfield, MN HR Green will meet with the City's Utility Supervisor to discuss the overall required improvements for Sanitary Sewer and Watermain. Existing sanitary sewer, watermain and services within the project corridor will be replaced with new material. The locations of utilities will remain unchanged. Plan sheets will be established necessary for final construction documents. HR Green will establish a street lighting design along the project corridor adhering to the City's lighting policy. HR Green will not complete a hydraulic assessment of the existing drainage system with in the project corridor. HR Green will meet with City staff and discuss known issues with storm drainage along the corridor and address them as needed. The existing drainage system will be replaced with similar sized structures and pipes as required on the project corridor. Plan sheets will be established necessary for final construction documents. 3.3 Environmental • The level of environmental review for the project will be dependent on two factors -the funding source(s) and the ability of the project to stay within existing right-of-way. If federal funds are used to impact Washington Park, then the 4(f) process will be triggered and au Environmental ilssessment (Erl) level of review will be required. HR Green has assumed that funding will be completely from local funds, which will not require any environmental documentation. Effort has been included for environmental permits. 3.4 Private Utility Coordination- • HR Green will meet with private utilities up to two (2) separate occasions during this project. The meetings will be held to discuss the overall project improvements, schedule, utility conflicts, and overall project coordination. HR Green will prepare agendas, exhibits, and meeting minutes necessary to conduct the meetings. Effort has also been included for communications between the established meetings for phone and email correspondence. Effort has been based on each meeting averaging two (2) hours of actual meeting time, preparation, and documentation for two - (2) -HR Gr-een staff. t1n additional two (2) hours-of-general communication and coordination-has been assumed for each utility for two (2) HR Green Staff. Deliverables: Meeting Minutes, Opinion of Probable Cost, Preliminary Utility Layout, 60% Plans, and drafr environmental document if necessary. Task 4 -Final Design The Final Design Phase builds on information provided throughout the Conceptual and Preliminary Design Phase and includes the preparation of the final set of drawings and spedfications. Significant elements of the project are assumed to be resolved prior to the Final Design Phase. Final Design consists of finalizing roadway, structure, storm sewer, water main, sanitary sewer, lighting, traffic, and signage plans complete with detailed notes and dimensioning. Final design also consists of adding final details to the drawings and completing the spedfications. HR Green will adhere to - - - -Mn--DOT State slid for Local Transportation and submit a Final Plan Set to MnDOT for review. Final design and plans shall be completed in Microstation format utilizing GEOPr1K for roadway, sanitary sewer, watem:ain, and drainage design. 4.1 Project Management • Hold up to two (2) client review meetings to discuss issues that arise during the final design phase. HR Green will be responsible for preparing meeting agendas, meeting minutes, and necessary exhibits to conduct the meetings. • Develop an Engineer's Estimate of Probable Cost at the final design phase. Estimate should be considered 100% complete by the consultant before submitting to the City of Richfield for review. • Coordinate a Quality Control review. 4.1.1 Title Sheet & General Notes Scope of Work 3 HRCreen ~'(;, ~ 76t" Street from 12~' Avenue to Ceder .Avenue deconstruction Project City of Richfield, MN The title sheets will include the following Index of Sheets, Legend, Location Map, Project Tide and other pertinent information. This item also consists of assembling reference ties to the plan control points and the bench mark data. This information will be used to develop the plans and aze required to be preserved throughout construction of the project. This item consists of compiling standard and special general notes and specifications necessary for bidding and construction of the project improvement elements. 4.1.2 Removal Plans This item consists of final design and drafting of the removal items necessary for the proposed improvements 4.1.3 Roadway Plans, Profiles & Details • Final design and drafting of typical cross-sections and standard details to be utilized for the improvements. • Final design and drafting of site specific grading plans and details for properties adjacent to the corridor. • Plan and profiles will be completed including detailed stationing, offsets, and notes necessary for bidding and construction. • Final design and drafting of the construction staging plans. Effort includes final meeting with local contractor to discuss the final construction staging elements. 4.1.4 Drainage Plans, Profiles, Tabulations & Details This item consists of final design and drafting of storm sewers, storm sewer inlets, manholes, open ditches, and other storm drainage related facilities on the project. 4.1.5 Sanitary Sewer & Watermain Plans, Profiles & Details This item consists of final design and drafting of the water main and sanitary sewer and special _ connection details planned on the project. 4.1.6 Tabulations and Estimated Quantities This item consists of final bid items to be included in the Project as well as final quantity tabulations and the development of the estimate reference information. 4.1.7 Erosion Control Plans & Details This item consists of final design and drafting of the erosion control and landscaping plans. 4.1.8. Lighting Plans & Details This item consists of final design and drafting of the lighting plans. 4.1.9 Signing & Pavement Markings Plans & Details This item consists of final design and drafting of the permanent pavement mazking and signage, and necessary details. 4.1.10 Project Specifications This item consists of preparation of a Project Manual utilizing the standazd City front-end documents, including Notice to Bidders, Instructions to Bidders, Proposal Form, Special Provisions, and Soils Report. 4.2 Environmental • Provide final permit applications. Deliverables: Meeting Minutes, Opinion of Probable Cost, Final Signed Construction Plans and Specifications, Final Permit Applications. Plans should be considered 100% complete by the consultant before submitting to the City of Richfield for review. Scope of Work 4 ~R~~~i~ ~~~~~ 76t" Street from 12th Avenue to Cedar Avenue Reconstruction Project City of Richfield, MN Task 5 -Construction Services Phase The Construction Services Phase will consist of construction administration, construction observation and construction survey. Project duration referred to within the SOS is assumed to be a three month construction period or thirteen (13) calendaz weeks. Construction is assumed to occur between April and August of 2012. Construction Administration & Observation • Provide the first line of contact with the contractor, City staff, property owners, business owners and residents along the affected project azea for construction-related coordination issues and concerns. • Verify proper construction materials and practices are used that meet or exceed the City's specification requirements. • Monitor contractor performance and construction progress relative to meeting the contract completion date. This will be accomplished by on-site observation and' a detailed diary of daily activities, equipment, personnel and weather conditions that affect construction performance. (Shall include digital pictures when appropriate.) • Effort has been included for one (1) HR Green staff to be on-site five. (5) days a week for ten (10) hours per day for the duration of the construction period. • Monitor the financial status of the project and review any conditions that may. require a change order and make recommendations to the City. • Prepare pay estimates, pay applications, contract change orders with analysis, justification and recommendations, and project correspondence. • Attend weekly progress meetings with property owners and the City. Weekly progress meetings will be utilized to address construction issues, design issues, and address property owner concerns. Project coordination and weekly project meetings will be completed under HR Green's direction for the project duration. HR Green will prepare meeting agendas which will s„mmari2e work completed prior week, work to be completed the current week, issues identified to date, critical items, and property owner. concems. Two staff from HR Green will attend the meeting. 1Vleeting minutes will be prepared and distributed to attendees following the meeting. For estimating purposes, hours are based on an average of 2 hours per meeting per HR Green staff to complete the above items. • Piovide final inspection Arid survey for record drawings and provide-one set of record drawings including one (1) paper copy (11"x17" size) and one (1) electronic copy. Construction Staking • Establishing working limits for construction. It will be the contractor's responsibility to maintain and protect these locations throughout the project. • Provide rough dirt staking for roadways within the project. • Provide offsets for proposed water main pipe at an interval of 100'. 50' intervals will be provided in critical locations to ensure proper grade and clearances between utilities. • Provide offsets for proposed-storm sewer pipe at an interval of 50'. • Provide offsets for proposed storm sewer inlets and junction boxes. - - • Provide offsets for proposed- sanitary sewer improvements and new manholes. • Provide offsets for retaining walls. Offsets for walls will be at a mar;mum interval of 25' spacing. • Provide offsets for proposed curb and gutter. Offsets will be at. an interval of 50' in vertical tangent locations and at intervals of 25' in vertical curve locations on side streets. • Provide offsets for proposed sidewalk which is detached from the curb and gutter at an interval of 50' or more. Sidewalk attached to the back of curb can be constructed based on top of curb elevations and the standazd detail and should not require staking. • Blue tops at 50' intervals or greater will be set on the proposed crown line of 76th Street and on side streets as needed. • Provide offsets for light bases and junction boxes. Contractor is responsible for depth of conduits. Deliverables: Daily Construction Observation Reports, Weekly Construction Meeting Minutes, Monthly Pay Estimates, Project Close-out documents, and work/change orders as needed, Record Drawings. Scope of 1/11ork ,. _ / / ~C i 76~' Street from 12~' Avenue to Cedar Avenue Reconstruction Project City of Richfield, MN Task 6 - Geotechnical Sub-consultant American Engineering Testing (AET) will be the geotechnical sub-consultant and will complete soil. borings, geotechnical report, and construction material testing. • AET will drill up to six (6) Standard Penetration Test (STP) borings. along the Project Corridor. • AET will prepare a Geotechnical Report identifying and classifying the soils from the borings. • AET will provide construction materials testing of grading and base items, bituminous construction items, and concrete construction items adhering to the "Minimum Agenry Verification (Acceptance) Testing Rates" of the 2012 Minnesota Department of Transportation Schedule of Material Control: Deliverables: Geotechnical Report and Material Testing Reports. ~E~ Professional Services Fee HR Green proposes to complete these services with a Not to Exceed fee as follows: TASK 1-CONCEPTUAL PHASE $24,000 TASK 2 -PUBLIC INVOLVEMENT PHASE $15;400. TASK 3 -PRELIMINARY DESIGN PHASE $52,800 TASK 4 -FINAL DESIGN PH11SE $54,800 TASK 5 -CONSTRUCTION SERVICES PHASE $127,000 TASK 6 - GEOTECHNICAL SUB-CONSULTANT $26,000 TOTAL $300,000 Scope of Work 6 ~~~rt~~ AGENDA SECTION: CONSENT AGENDA ITEM # SG REPORT # 182 .....a "~ STAFF REPORT CITY COUNCIL MEETING ..,~„~,~ SEPTEMBER 13, 2011 REPORT PREPARED BY: REVIEWED BY CITY MANAGER: PAM DMYTRENKO, ASSISTANT CITY MANAGER NAME, TITLE /j~u~ ITEM FOR COUNCIL CONSIDERATION: Accept the change order report for the Richfield Municipal Project for an aggregate net effect of $68,100 in items included in the project bud et. I. RECOMMENDED ACTION: By Motion: Accept the Richfield Municipal Center change order report for an aggregate net effect of $68,100 in items included within the aroiect budaet. II. BACKGROUND Resolution No. 10309 provides the City Manager the authority to approve change orders for all contracts awarded by the City Council for the construction of the new Richfield Municipal Center subject to the following limitations: • Up to an aggregate of $25,000 for non-budgeted items • Up to an aggregate of $100,000 for items within the project budget Following the approval of such change orders, the City Manager must report this information to the City Council. Attached is the list of the approved project change orders since the August 9, 2011 City Council meeting. Two major items reflect the highest change order costs. They are as follows: Generator Fuel Piping and Emergency Vents (Total CO's = $36 823) As Council is aware, the building's backup generator was installed inside the building so as to minimize noise disruption to the surrounding neighbors and to 0510change orders preserve the park setting. The cost of the generator piping (exhaust, fuel tank vent) was always anticipated in the project, but never incorporated into the bid specs. because of the uncertainty of the vent routing due to the unique nature of an indoors generator. The piping vent work was ultimately performed at cost, without any overhead or profit and is reflected in the attached change order report. The change order for the base work included running a 12" welded steel pipe from the generator muffler up the brick "chimney" to a cap at the top of the chimney, plus running a 6" welded steel vent pipe from the fuel tank to the top of the chimney. Additionally, a second 6" vent pipe from the fuel tank to the top of the chimney had to be installed per manufacturer's guidelines. This vent pipe wasn't included in the original design, but was required by the fuel tank manufacturer because of the location of the fuel tank inside the building. This requirement was not known until the architect received the shop drawings from the manufacturer. Firing Range Fire Protection (Total CO's = $10,015 After a review of the firing range fire protection system by the State Fire Marshal, it was determined that the material used for the bullet trap in the firing range was of a higher hazard classification than what the original sprinkler system was designed to protect. This situation necessitated a redesign and installation of additional fire protection to meet the higher hazard classification. Total net project change orders to-date is $396,850. III. BASIS OF RECOMMENDATION A. POLICY • In order to maintain the construction schedule of the Richfield Municipal Center project and respond to change order requests in a timely manner, the City Council has authorized (Resolution No. 10309) the City Manager to approve change orders up to an aggregate value of $100,000 for budgeted items and up to an aggregate value of $25,000 for non-budgeted items. B. CRITICAL TIMING ISSUES • The City Manager must report approved change orders for the Richfield Municipal Center to the City Council at the next Council meeting. • These change orders have already been approved and, in most cases, implemented. C. FINANCIAL • The change orders before the Council for review on September 13, 2011 represent a net effect of $68,100 for budgeted items. • Total net project change orders to-date is $396,850. D. LEGAL • NA E. ENVIRONMENTAL CONSIDERATIONS • NA IV. ALTERNATIVE RECOMMENDATION~S~ • None V. ATTACHMENTS • Richfield Municipal Center Change Order Log VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None J~-( L V L ++ c O c O O ~ ~ ~ 0 d 0 ~ ~ a~ ~ ~ ~ o _ ~ ~ _ LL y U LL ~ (o N •~ ~ N N W N c +~ ~ c c c c c a~ c ~ m N a~ N .c y ~ c .c .c .c .~ ~ .c c c ~ .~ o rn .c ~ ,c _c F- I- f- > > > OD ~ (n W ~ J > > OD 00 .r+ = pO p0 Op O p O p p 00 00 O O pO 00 O O ~ ~ Q 00 E N O O a1 (fl O O O O (p (`7M O ~}' ~ I~ O tn O ~ ~ (~O ~ O N r ^ N N ~ 00 r- 00 d' ~ to M ~ M r to t~ t0 N ~ Q (O O `~ CO N M Cfl ~ N h ~ •-- N CO y N N O N N O O U^ ~ ~ N ~ w N N ~ ~ _ '~ fl. 3 y • f6 U > D a3i ~ -~ a> ~ ~ n °' 3 y c o N y ~ m ~~ o ~? ~ ~ O o U C a~ ~ w o ~ n ° U Q m p > •L C ~ . N Q U ~ O clf O ~ N .~ 0 0 y ~~ ~ LLI '~ N ~ ~ O U f6 w ~ N N d ~ ~ ~ p ~ ~ Ur ~ y N + + V C ~ (6 C Q f6 X c ~ O ~ ~ ~ LL o ~ __ N ~ o ~ L ~ ._ Y > W - o~f L ~ ~ y 4= y0.. > co O c ~ a ~ '> ~ U ~ ~ aQi a~ o ~ ~ ~ w o ~ ~ = O ~ N ~ O y N O y N Y c ~ Q ~ N ~ ~ E ~ c O 'O Q ~ O a ~ N t d ~ \ ~ \\ •~ Q ~ ~ L _ cC ~ ~ ~ O / A ~ L ~ U_ •L ~ y _U / J (n N V '6 i (6 Q G ' ~ U L A N O N m d ~ o N c ~ p U U xS ~ Q ~ C ~ O rn o° w a V m N °' m coo ~ ~ °~ ~ a> o a m l~ U ~ ~ . •~ c w W > n ~ ~ ns C ~ V Q, ~ rn rn V C W N U' .~ ~ N ~ ~ Q ~ W 0 ~ 2 > ~ Q O J Q Ut ~ i1 - ~ Ul L il L_ i Z ~ o~ (O N 00 0 M 0 i i i rn O ~ i i ~ ~ ~ i ~ N r - S O M N a- ~ M W ~ ~ N O ~ W O O ~ - N O M ~ ~ N 00 ~ N ~ O N O N M r' O N N N N N N N N N N N M N M N M N V ~ M r r r T ~ ~ ~ ~ ~ ~ ~ r ~ ~ r r a Q J L ^~ i U AGENDA SECTION: CONSENT AGENDA ITEM # SH REPORT # 183 ~~' STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: BETSY OSBORN, SUPPORT SERVICES MANAGER NAME, T/TLE ITEM FOR COUNCIL CONSIDERATION: Consideration of a request by Richfield Visions, Inc. for itinerant place of amusement and itinerant food licenses for Richfield Cattail Days events scheduled to be held on September 17, 2011, at Veterans Memorial Park, 6400 Portland Avenue South, Richfield, MN. I. RECOMMENDED ACTION: By Motion: Approve the request for itinerant place of amusement and itinerant food licenses for Richfield Visions, Inc., for Richfield Cattail Days events scheduled to take place on September 17, 2011, at Veterans Memorial Park, 6400 Portland Avenue South, Richfield, MN II. BACKGROUND On August 3, 2011, Richfield Visions, Inc. applied for itinerant place of amusement and itinerant food licenses for the activities scheduled to take place at Veterans Memorial Park on September 17, 2010. The City has previously granted this license to Richfield Visions, Inc. for the Richfield Cattail Days celebration. They will be serving such food items as burgers, brats, BBQ pork and beef, corn dogs, hot dogs, snow cones, gyros, ice cream, donuts, cotton candy, canned soda and water. 091311 Richfield Catttail Days Licenses The committee has contacted food sanitarians from the City of Bloomington to ensure that proper food handling practices are followed. They will work with Bloomington sanitarians and follow their recommendations for safe and wholesome food handling. III. BASIS OF RECOMMENDATION A. POLICY • The application has. complied with all of the provisions of the City application process and meets the requirements. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • N/A E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Deny the request for itinerant amusement and food licenses. This would result in the applicant not being able to conduct activities, especially those concerning food preparation, on September 17, 2011. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Bob Houlton, President Richfield Visions, Inc. A(ir;NllA J~(:IlUN: C;UNS~N'1' AGENDA ITEM # SI REPORT # 184 STAFF R~PQRT CITX COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: BETSY OSBORN, SUPPORT SERVICES DIVISION MANAGER DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the request for a temporary on-sale liquor license for Blessed Trinity's Parent Meet and Greet event to be held September 17, 2011. I. RECOMMENDED ACTION: By Motion: Approve a temporary on-sale liquor license for Blessed Trinity's Parent Meet and Greet event to be held September 17, 2011. III. BACKGROUND ~ On August 23, 2011, Blessed Trinity Catholic School submitted a request for a temporary on-sale liquor license for their Parent Meet and Greet event to be held September 17, 2011. The required licensing fees have been received. This is a private event, not open to the public; however, because alcohol will be available, State law requires City Council approval. The applicant has contacted the State of Minnesota Alcohol and Gambling Enforcement and will follow all State rules and recommendations to ensure compliance and safety for this event. Liquor liability insurance coverage has been provided, showing The Catholic Mutual Relief Society affording the coverage. 091311 Blessed Trinity Parent Meet and Greet event. NAME, TITLE III. BASIS OF RECOMMENDATION A. POLICY • The applicant has complied with the City and State codes pertaining to this license. B. CRITICAL ISSUES • Necessary fees have been paid and insurance coverage has been provided. C. FINANCIAL • All licensing fees for this event have been received. D. LEGAL • ~ N/A E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • .Deny the request. However, the Public Safety Department has not found any basis for a denial. V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Blessed Trinity Catholic School staff/representative. ACiYNllA J~C;llUN: YU13Ll(; HEARINGS AGENDA ITEM # 7 REPORT # I85 STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME TircE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Conduct a public hearing and consider a Resolution Adopting a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and Adopting an Amended and Restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housinal. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve a Resolution adopting a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and Adopting an Amended and Restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing). II. BACKGROUND On May 11, 2010 the City Council approved the establishment of a Housing Tax Increment Financing (TIF) District for the development of the Woodlake Apartments project. This action was taken after numerous presentations from the Developers (Terry McNellis, Mary McNellis and Michael Swenson of Woodlake Richfield Apartments, LLC) to the Planning Commission, Housing and Redevelopment Authority (HRA) and City Council. The basic development concept remains the same as it was last presented to the City Council. The project entails the demolition of the existing 25,000 sq. ft. multi- tenant retail building and the construction of mid-to-upper level rental housing with 09132011 Woodlake TIF 20% of that housing meeting state standards as "affordable" to households earning at or below 50% of the area median income. There have been, however, a few revisions to the site and building plans. The revised proposal increases the overall value of the project by creating units that will rent at a higher rate than the previous plan. Unit sizes throughout the project have increased by approximately 15-20 percent per unit and the interior amenities of the project have been improved. The community and fitness rooms are over 200 percent larger, interior finishes have been improved and offices and a business center added. The revised proposal increases the unit count from 90 to 94 and includes 5 studios(-2), 50 one-bedroom units (+14), 30 two-bedroom units (-7) and 9 three-bedroom units (-1). The increase in unit size has increased the building area of the project by approximately 20,000 square feet. The revision also includes a significant expansion of the below-grade parking garage. This has allowed for a net increase of 17 additional parking spaces. The overall increase in the project value will also allow for better exterior finishes. The entire exterior is brick, cement board or metal panel. Previously, the project included large areas of vinyl siding, all of which has been removed. In addition to physical changes to the development proposal, the Developer has also changed the manner in which they will be financing the project and, as a result, the method and amount of public financing being sought. The Developer is now finalizing its private financing, which includes tax-exempt bonds proposed to be issued by the City in the amount of up to $15,000,000. At the time the TIF District was approved, it was expected that the tax increment generated by the TIF District would be used to reimburse the Richfield HRA for up to $85,000 for land to be conveyed to the Developer and to pay principal and interest on apay-as-you-go note in the amount of $822,000 (net present value) issued to reimburse Woodlake Richfield Apartments, LLC for site acquisition and site improvement costs. In working with its Lender, the Developer has determined that property taxes payable for the Project, if higher than originally anticipated due to the project improvements, may lead to a funding gap for the Project. The Developer has requested additional tax increment assistance in the form of a second pay-as-you- go note ("B Note") issued in the amount of $500,000 but payable only if the Developer pays real estate taxes for the Project in the amount of more than $144,000 in any calendar year. Payment of the B Note would not decrease the amount of payment that the HRA would receive (either for its property or for payment towards administrative costs). In order to allow for this request, staff and consultants have worked to amend and. restate the Tax Increment Plan to include a second pay-as-you-go note in the TIF Plan's budget. Pursuant to Minnesota State Statute, a change in the TIF Plan's budget requires another public hearing before the City Council. III. BASIS OF RECOMMENDATION A. POLICY • On April 27, 2010, the Richfield City Council held a public hearing and on May 11, 2010 it passed a resolution adopting a modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and the Establishment of the 2010-1 Housing Tax Increment Financing District (aka Woodlake Housing Tax Increment Finance District). • On August 15, 2011, the Richfield HRA approved a Resolution adopting a Modification to the Redevelopment Plan the Amended and Restated Tax Increment Financing Plan for the 2010-1 (Woodlake) Housing TIF District. B. CRITICAL TIMING ISSUES • The Developers plan on closing on their financing during the last week of September. This TIF Modification must be approved before closing can take place. C. FINANCIAL • The only substantive addition to this TIF Plan Modification is the addition of a $500,000 "B" TIF Pay-As-You-Go-Note. • The Developer would only receive increment if they pay real estate taxes in an amount of more than $144,000 in any calendar year and only if such increment were available. • The addition of this "B Note" will not reduce any TIF payable to the H~RA r HRA or have any negative financial impacts on the City or D. LEGAL • Legal Counsel has reviewed the attached Resolution. E. ENVIRONMENTAL CONSIDERATIONS • N/A ~ IV. ALTERNATIVE RECOMMENDATION(S) ~ Adopt the attached Resolution with modifications addressing any City Council member concerns. Continue consideration of this item to a later date. Deny adoption of the attached Resolution. ~ V. ATTACHMENTS ~ • rcesoiution • Modified Redevelopment Plan for the Richfield Redevelopment Project Area and Adopting an Amended and Restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing). PRINCIPAL PARTIES EXPECTED AT MEETING • Representatives of the City's Public Finance Consultants -Ehlers & Associates. • Representatives of the Developer. 7~1 RESOLUTION NO. RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND ADOPTING AN AMENDED AND RESTATED TAX INCREMENT FINANCING PLAN FOR THE 2010-1 HOUSING TAX INCREMENT FINANCING DISTRICT (WOODLAKE HOUSING) THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFORE BE IT RESOLVED by the City Council (the "Council") of the City of Richfield, Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. The Board of Commissioners of the Richfield Housing and Redevelopment Authority (the "HRA") has heretofore established the Richfield Redevelopment Project Area and adopted a Redevelopment Plan therefore. It has been proposed by the HRA and the City that the City adopt a modification to the Redevelopment Plan for the Richfield Redevelopment Project Area (the "Redevelopment Plan Modification") and adopt an Amended and Restated Tax Increment Financing Plan (the "TIF Plan") for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) (the "District") (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 to 469.047 and Sections 469.174 to 469.1799, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration. 1.02. The HRA and City have investigated the facts relating to the Plans and have caused the Plans to be prepared. 1.03. The HRA and City have performed all actions required by law to be performed prior to the establishment of the District and the adoption and approval of the proposed Plans, including, but not limited to, notification of Hennepin County and Independent School District No. 280 having taxing jurisdiction over the property to be included in the District, a review of and written comment on the Plans by the City Planning Commission on August 22, 2011, approval of the Plans by the HRA on August 15, 2011, and the holding of a public hearing upon published notice as required by law. 1.04. Certain written reports (the "Reports") relating to the Plans and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Council and/or made a part of the City files and proceedings on the Plans. The Reports include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The reports include the Application Packet from Michael Development and the Market Study by Maxfield Research. The Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. 1.05. The City is not modifying the boundaries of Richfield Redevelopment Project Area, but is however, modifying the Redevelopment Plan therefore. Section 2. Findings for the Adoption and Approval of the Plans. 2.01. The Council hereby finds that the Plans are intended and, in the judgment of this Council, the effect of such actions will be, to provide an impetus for development in the public interest and accomplish certain objectives as specified in the Plans, which are hereby incorporated herein. `~-~ Section 3. Findings for the Adoption of an Amended and Restate TIF Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing). 3.01. The Council hereby finds that the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) is in the public interest and is a "housing district" under Minnesota Statutes, Section 469.174, Subd. 11 of the Act. 3.02. The Council further finds that the proposed development would not occur solely through private investment within the reasonably foreseeable future that the Plans conform to the general plan for the development or redevelopment of the City as a whole; and that the Plans will afford maximum opportunity consistent with .the sound needs of the City as a whole, for the development or redevelopment of the District by private enterprise. 3.03. The Council further finds, declares and determines that the City made the above findings stated in this Section and has set forth the reasons and supporting facts for each determination in writing, attached hereto as Exhibit A. Section 4. Public Purpose. 4.01. The adoption of the Plans conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the City which is already built up, to provide housing opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose. For the reasons described in Exhibit A, the City believes these benefits directly derive from the tax increment assistance provided under the TIF Plan. A private developer will receive only the assistance needed to make this development financially feasible. As such, any private benefits received by a developer are incidental and do not outweigh the primary public benefits. Section 5. Approval and Adoption of the Plans. 5.01. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved, ratified, established, and adopted and shall be placed on file in the office of the Community Development Director. 5.02. The staff of the City, the City's advisors and legal counsel are authorized and directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and present to this Council for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. 5.03 The Auditor of Hennepin County is requested to certify the original net tax capacity of the District, as described in the Plans, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased; and the Richfield Housing and Redevelopment Authority is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the District, for which building permits have been issued during the 18 months immediately preceding the adoption of this resolution. 5.04. The Community Development Director is further authorized and directed to file a copy of the Plans with the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes 469.175, Subd. 4a. 13 2011. Passed by the City Council of the City of Richfield, Minnesota this 13th day of September Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk (Seal) 7 `I EXHIBIT A The reasons and facts supporting the findings for the adoption of the Amended and Restated Tax Increment Financing Plan for the 2010-1 .Housing Tax Increment Financing District (Woodlake Housing) as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: Finding that the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) is a housing district as defined in M. S., Section 469.174, Subd. 11. The 2010-1 Housing TIF District (Woodlake Housing) consists of three parcels. The development will consist of 94 units of rental housing. All or a portion of the units which will receive tax increment assistance will meet income restrictions described in M. S. 469.1761 for the duration of the District. At least 20 percent of the units receiving assistance will have incomes at or below 50 percent of statewide median income. Appendix E of the TIF -Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment. The cost of land acquisition and site and public improvements makes this housing development infeasible without City assistance. Due to the high cost of building affordable new housing in the City and the cost of financing the proposed public improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. This finding is justified on the grounds that the cost of land acquisition and site and public improvements add to the total development cost. Historically, site development costs in this area have made development infeasible without tax increment assistance. This site has been owned and operated by Michael Development for over 17 years. The site is currently 49% vacant, despite extensive leasing efforts and installation of a new facade and sign band in 2003. In addition, the HRA site has been vacant for several years and was purchased by the HRA in 2007, at which time it became tax exempt. The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. The City has relied upon budgetary figures and cost estimates submitted by the developer for the development of the proposed rental housing. These analyses show that in order to promote the development of affordable housing in the City, financial assistance is needed to reduce the costs of land acquisition. The construction of the proposed housing is cost prohibitive without the use of tax increment due to several factors, including the following: (1) the difficulty in obtaining low cost financing in the current economic market; (2) the cost of acquisition; (3) affordable housing does not generate sufficient revenues to offset the increased start up costs. The tax increment derived from the TIF District will be used to reimburse the HRA for land acquisition and assist with the refinancing of the other two parcels. With this assistance, the land can be provided to the developer at a significantly reduced cost and therefore help the developer bridge the gap in financing the project. 3. Finding that the TlF Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) conforms to the general plan for the development or redevelopment of the municipality as a whole. qb The Planning Commission met on August 22, 2011, and reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. 4. Finding that the TlF Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. Through the implementation of the TIF Plan; the HRA and City will provide an impetus for affordable residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City. As of August 10, 2011 Draft for Public Hcurin~~l Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area and the Amended and Restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) (a housing district) within the Richfield Redevelopment Project Area _/ Richfield Housing and Redevelopment Authority Cite of Richfield Hennepin Count~~ State of Minnesota Public Hearing: April 27. 2010 Adopted: Mav 1 1. 2010 Hearing for Amended Plan: September 13, 201 1 Adopted: EHLERS Prepared by EHLERS & ASSOCIATES. INC. 3060 Centre Pointe Drive. Roseville. Minnesota 55113-1105 651-697-8500 fax: 651-697-8555 www.ehlers-inc.com Table of Contents (for reference purposes only) Section 1 -Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area Foreword ............................................................. 1-1 Section 2 -Tax Increment Financing Plan for the 2010-1 Ho using Tax Increment Financing District (Woodlake Housing) Subsection 2-1. Foreword ............................................... 2-1 Subsection 2-2. Statutory Authority ........................................ 2-1 Subsection 2-3. Statement of Objectives ................................... 2-1 Subsection 2-4. Redevelopment Plan Overview .............................. 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired 2-2 Subsection 2-6. Classification of the District ................................. 2-2 Subsection 2-7. Duration and First Year of Tax Increment of the District ........... 2-3 Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ........................................... 2-3 Subsection 2-9. Sources of Revenue/Bonds to be Issued ...................... 2-4 Subsection 2-10. Uses of Funds ........................................... 2-5 Subsection 2-11. Fiscal Disparities Election .................................. 2-6 Subsection 2-12. Business Subsidies ............................... . ....... 2-7 Subsection 2-13. County Road Costs ....................................... 2-7 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions ................. 2-8 Subsection 2-15. Supporting Documentation ................................. 2-9 Subsection 2-16. Definition of Tax Increment Revenues ....................... 2-10 Subsection 2-17. Modifications to the District ................................ 2-10 Subsection 2-18. Administrative Expenses .................................. 2-10 Subsection 2-19. Limitation of Increment ................................... 2-11 Subsection 2-20. Use of Tax Increment .................................... 2-12 Subsection 2-21. Excess Increments ...................................... 2-13 Subsection 2-22. Requirements for Agreements with the Developer .............. 2-13 Subsection 2-23. Assessment Agreements ................................. 2-13 Subsection 2-24. Administration of the District ............................... 2-13 Subsection 2-25. Annual Disclosure Requirements ........................... 2-14 Subsection 2-26. Reasonable Expectations ................................. 2-14 Subsection 2-27. Other Limitations on the Use of Tax Increment ................. 2-14 Subsection 2-28. Summary .............................................. 2-14 Appendix A Project Description ...................................................... A-1 Appendix B Map(s) of the Richfield Redevelopment Project Area and the District ............... B-1 Appendix C Description of Property to be Included in the District ............................ C-1 Appendix D Estimated Cash Flow for the District ........................................ D-1 Appendix E Housing Qualifications for the District ........................................ E-1 Appendix F Findings for the District ................................................... F-1 Section 7 -Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area Foreword The following text represents a Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area: This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Richfield Redevelopment Project Area. Generally, the substantive changes include the approval of an amended and restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing). For further information, a review of the Redevelopment Plan for the Richfield Redevelopment Project Area is recommended. It is available from the Community Development Director of the City of Richfield. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Richfield Redevelopment Project Area. Richfield HRA Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area 1-1 Section 2 -Amended and Restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) Subsection 2-1. Foreword The Richfield Housing and Redevelopment Authority (the "HRA"), the City of Richfield (the "City"), staff and consultants have prepared the following information to expedite the approval of an Amended and Restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) (the "District"), a housing tax increment financing district, located in the Richfield Redevelopment Project Area. Subsection 2-2. Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S.'), Sections 469.001 to 469.047, inclusive, as amended, and M.S., Sections 469.174 to 469.1799, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Amended and Restated Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. Subsection 2-3. Statement of Objectives The District currently consists of three parcels of land and adjacent and internal rights-of--way. The District is being created to facilitate the construction of a 94-unit, market rate housing development with an affordable component in the City. Please see Appendix A for further District information. The HRA has not entered into an agreement at the time of preparation of this TIF Plan, but development is likely to occur in fa112011. The HRA anticipates entering into an agreement with Woodlake Richfield Apartments, LLC. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Plan for the Richfield Redevelopment Project Area. The activities contemplated in the Modification to the Redevelopment Plan and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of the Richfield Redevelopment Project Area and the District. Subsection 2-4. Redevelopment Plan Overview 1. Property to be Acquired -The HRA currently owns one parcel of property within the District. The remaining property located within the District may be acquired by the HRA or City and is further described in this TIF Plan. 2. Relocation -Relocation services, to the extent required by law, are available pursuant to M.S., Chapter 117 and other relevant state and federal laws. 3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the HRA or City may sell to a developer selected properties that it owns or may acquire within the District or may lease land or facilities to a developer. 4. The HRA or City may perform or provide for some or all necessary acquisition, construction, relocation, demolition, and required utilities and public street work within the District. Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-1 Subsection 2-5. Description of Property in the District and Property To Be Acquired The District encompasses all property and adjacent rights-of--way and abutting roadways identified by the parcels listed in Appendix C of this TIF Plan. Please also see the map in Appendix B for further information on the location of the District. The HRA currently owns one parcel to be included in the District. Subsection 2-6. Classification of the District The HRA and City, in determining the need to create a tax increment financing district in accordance with M.S., Sections 469.174 to 469.1799, as amended, inclusive, find that the District, to be established, is a housing district pursuant to M.S., Section 469.174, Subd. 11 and M.S., Section 469.1761 as defined below: M.S., Section 469.174, Subd.11: "Housing district" means a type of tax increment financing district which consists of a project, or a portion of a project, intended for occupancy, in part, by persons or families of low and moderate income, as defined in chapter 462A, Title II of the National Housing Act of 1934, the National HousingAct of 1959, the United States HousingAct of 1937, as amended, Title V of the HousingAct of 1949, as amended, any other similar present or future federal, state, or municipal legislation, or the regulations promulgated under any of those .acts, and that satisfies the requirements of M.S., Section 469.1761. Housing project means a project, or portion of a project, that meets all the qualifications of a housing district under this subdivision, whether or not actually established as a housing district. M.S., Section 469.1761: Subd. 1. Requirement imposed. (a) In order for a tax increment financing district to qualify as a housing district: (1) the income limitations provided in this section must be satisfied; and (2) no more than 20 percent of the square footage of buildings that receive assistance from tax increments may consist of commercial, retail, or other nonresidential uses. (b) The requirements imposed by this section apply to property receiving assistance financed with tax increments, including interest reduction, land transfers at less than the Authority's cost of acquisition, utility service or connections, roads, parking facilities, or other subsidies. The provisions of this section do not apply to districts located within a targeted area as defined in Section 46X.02 Subd 9, clause (e). (c) For purposes of the requirements of paragraph (a), the authority may elect to treat an addition to an existing structure as a separate building if (1) construction of the addition begins more than three years after construction of the existing structure was completed,• and (2) for an addition that does not meet the requirements of paragraph (a), clause (2),if it is treated as a separate building, the addition was not contemplated by the tax increment financing plan which includes the existing structure. Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-2 Subd. 2: Owner occupied housing. For owner occupied residential property, 95 percent of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 1430 of the Internal Revenue Code. Subd. 3. Rental property. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d) of the Internal Revenue Code. The requirements of this subdivision apply for the duration of the tax increment financing district. Subd. 4. Noncompliance; enforcement. Failure to comply with the requirements of this section is subject to M.S., Section 469.1771. In meeting the statutory criteria the HRA and City rely on the following facts and findings: • The District consists of three parcels. • The development will consist of 94 units ofmulti-family rental housing. • 20% of the units will be occupied by person with incomes less than 50% of median income. Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of NLS., Sections 273.111 or 273.112 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District. Subsection 2-7. Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment ofthe District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1 b., the duration of the District will be 25 years after receipt of the first increment by the HRA or City (a total of 26 years of tax increment). The HRA or City elects to receive the first tax increment in 2014, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 203.9, or when the TIF Plan is satisfied. The HRA or City reserves the right'to decertify the District prior to the legally required date. Subsection 2-8. Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M. S., Section 469.177, Subd. l ,the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property owned by the developer by the assessor in 2011 for taxes payable 2012. The HRA parcel within the District is currently exempt from property taxes. Upon conveyance of the HRA parcel to the Developer, the assessor will determine the market value of the property at the time of transfer of the HRA parcel. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2014) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-3 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the City. The original local tax rate for the District will be the local tax rate for taxes payable 2012, assuming the request for certification is made before June 30, 2012. The ONTO and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within the Richfield. Redevelopment Project Area, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The City requests 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2014. The Project Tax Capacity (PTC) listed is an estimate of the captured tax capacity of the District in the final year of collection of tax increment (year 26 of the District). Project Estimated Tax Capacity upon Completion (PTC) $326,382 Original Estimated Net Tax Capacity (ONTC) $17,625 Fiscal Disparities Reduction $0 Estimated Captured Tax Capacity (CTC) $308,757 Original Local Tax Rate 1.38568 Pay 2011 Estimated Annual Tax Increment (CTC x Local Tax Rate) $427,838 Percent Retained by the HRA 100% *Tax ca acity includes a 4% inflation factor for the duration of the District. The tax capacity included in this chart is ~he estimated tax capacity of the District in year 26. The tax capacity of the District m year one is estimated to be $127,329. Pursuant to M.S., Section 469.177, Subd. 4, the HRA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City has reviewed the area to be included in the District and has determined that no building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City. Subsection 2-9. Sources of Revenue/Bonds to be Issued The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA or the City reserve the right to incur bonds or other indebtedness as a result of the TI F Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-4 Plan. As presently proposed, the projects within the District will be financed by apay-as-you-go note. ]n addition, the HRA intends to enter into an interfund loan pursuant to M.S., Section 469.178 to reimburse itself for funds advanced for the project through the conveyance of land to a developer for less than fair market value and administrative costs. It is estimated that $1,322,000 in one or more pay-as-you-go notes will be issued to a developer and payable from tax increment revenues. Additional indebtedness may be required to finance other authorized activities. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the HRA or the City to incur debt. The HRA or the City will issue bonds or incur other debt only upon the determination that such action is in the best interests of the HRA or the City. The total estimated tax increment revenues for the District are shown in the table below: SOURCES OF FUNDS TOTAL Tax Increment $6,890,000 Interest $10,000 TOTAL $6,900,000 The HRA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $2,889,500. Such bonds may be in the form of pay-as- you go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of this modification. Subsection 2-10. Uses of Funds Currently under consideration for the District is a proposal to facilitate the construction of a 94-unit, market rate housing development with an affordable component. The HRA and City have determined that it will be necessary to provide assistance to the projects for certain District costs, as described. The HRA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the table on the following page. USES OF TAX INCREMENT FUNDS TOTAL Land/Building Acquisition $1,500,000 Site Improvements/Preparation $699,500 Utilities $0 Other Qualifying Improvements $0 Administrative Costs (up to 10%) $690,000 PROJECT COST TOTAL $2,889,500 Interest $4,010,500 PROJECT AND INTEREST COSTS TOTAL $6,900,000 Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-5 The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in Appendix D. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. The HRA may expend funds for qualified housing activities outside of the District boundaries. Subsection 2-11. Fiscal Disparities Election Pursuant to M.S., Section 469.177, Subd. 3, the City may elect one of two methods to calculate fiscal disparities. If the calculations pursuant to M.S., Section 469.177, Subd. 3, clause b, (within the District) are followed, the following method of computation shall apply: (1) The original net tax capacity shall be determined before the application of the fiscal disparity provisions of Chapter 276A or 473F. The current net tax capacity shall exclude any fiscal disparity commercial-industrial net tax capacity increase between the original year and the current year multiplied by the fiscal disparity ratio determined pursuant to M.S., Section 276A.06, subdivision 7 or M.S., Section 473F.08, subdivision 6. Where the original net tax capacity is equal to or greater than the current net tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax capacity is less than the current tax capacity, the difference between the original net tax capacity and the current net tax capacity is the captured net tax capacity. This amount less any portion thereof which the authority has designated, in its tax increment financing plan, to share with the local taxing districts is the retained captured net tax capacity of the authority. (2) The county auditor shall exclude the retained captured net tax capacity of the authority from the net tax capacity of the local taxing districts in determining local taxing district tax rates. The local tax rates so determined are to be extended against the retained captured net tax capacity of the authority as well as the net tax capacity of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district tax rates or (B) the original local tax rate to the retained captured net tax capacity of the authority is the tax increment of the authority. The City will choose to calculate fiscal disparities by clause b. However, it is not anticipated that the District will contain commerciaUindustrial property. As a result, there should be no impact due to the fiscal disparities provision on the District. According to M.S., Section 469.177, Subd. 3: (c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall remain the same for the duration of the district, except that the governing body may elect to change its election from the method of computation in paragraph (a) to the method in paragraph (b). Subsection 2-12. Business Subsidies Pursuant to M.S., Section 116J.993, Subd. 3, the following forms of financial assistance are not considered a business subsidy: (1) A business subsidy of less than $150,000; (2) Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-6 (3) Public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; (4) Redevelopment property polluted by contaminants as defined in M.S., Section 116J.552, Subd. 3; (5) Assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50% of the total cost; (6) Assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; (7) Assistance for housing; (8) Assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined under M.S., Section 469.174, Subd. 23; (9) Assistance for energy conservation; (10) Tax reductions resulting from conformity with federal tax law; (11) Workers' compensation and unemployment compensation; (12) Benefits derived from regulation; (13) Indirect benefits derived from assistance to educational institutions; (14) Funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501 (c) (3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; (15) Assistance for a collaboration between a Minnesota higher education institution and a business; (16) Assistance for a tax increment financing soils condition district as defined under M.S, Section 469.174, Subd. 19; (17) Redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; (18) General changes in tax increment financing law and other general tax law changes of a principal ly technical nature; (19) Federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; (20) Funds from dock and wharf bonds issued by a seaway port authority; (21) Business loans and loan guarantees of $150,000 or less; (22) Federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and (23) Property tax abatements granted under M.S., Section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. The HRA will comply with M.S., Sections 116J.993 to 116J.995 to the extent the tax increment assistance under this TIF Plan does not fall under any of the above exemptions. Subsection 2-13. County Road Costs Pursuant to M.S., Section 469.175, Subd. 1 a, the county board may require the HRA or City to pay for all or part of the cost of county road improvements if the proposed development to be assisted by tax increment will, in the judgment of the county, substantially increase the use of county roads requiring construction of road improvements or other road costs and if the road improvements are not scheduled within the next five years under a capital improvement plan or within five years under another county plan. If the county elects to use increments to improve county roads, it must notify the HRA or City within forty- five days of receipt of this TIF Plan. In the opinion of the HRA and City and consultants, the proposed development outlined in this TIF Plan will have little or no impact upon county roads, therefore the TIF Plan was not forwarded to the county 45 days prior to the public hearing. The HRA and City are aware that the county could claim that tax increment should be used for county roads, even after the public hearing. Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-7 Subsection 2-14. Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TI F Plan would occur without the creation of the District. Through an analysis of the project financials, a financing gap exists and assistance is needed to move the project forward. The estimated fiscal impact of the District would be as follows if the "but for" test was not met: IMPACT ON TAX BASE Estimated Estimated Captured 2010/Pay 2011 Tax Capacity (CTC) .Percent of CTC Total Net Upon Completion to Entit~Total Tax Capacity Hennepin County 1,320,682,751 308,757 0.0234% City of Richfield 24,776,100 308,757 1.2462% Richfield ISD No. 280 32,204,673 308,757 0.9587% IMPACT ON TAX RATES Estimated Pay 2011 Percent Potential Extension Rates of Total CTC Taxes Hennepin County 0.458400 33..08% 308,757 141,534 City of Richfield 0.567970 40.99% 308,757 175,365 Richfield ISD No. 280 0.267590 19.31 % 308,757 82,620 Other 0.091720 6.62% 308.757 28,319 Total 1.385680 100.00% 427,838 The estimates listed above display the captured tax capacity when all construction is completed. The tax.rate used for calculations is the estimated Pay 2011 rate. The total net capacity for the entities listed above are based on estimated Pay 2011 figures. The District will be certified under the actual Pay 2012 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b): (1) Estimate of total tax increment. It is estimated-that the total amount of tax increment that will be generated over the life of the District is $6,900,000; (2) Probable impact of the District on city provided services and ability to issue debt. The probable impact ofthe District on police protection is not expected to be significant. With any addition of new residents or businesses, police calls for service will be increased. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities. The probable impact ofthe District on fire protection is not expected to be significant. Typically new buildings generate few calls, if any, and are of superior construction. The City may have a slight increase in medical related calls; however, the development is not expected to require an increase in capital investment in vehicles or facilities. Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-8 The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer, storm sewer and water will be able to handle the additional volume generated from the proposed development. Based on the development plans, there are no additional costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the District will contribute sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit. (3) Estimated amount of tax increment attributable to school district levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same is $1,332,390; (4) Estimated amount of tax increment attributable to county levies. It is estimated that the amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is $2,282,520; (5) Additional information requested by the county or school district. The City is not aware of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan. No requests for additional information from the county or school district regarding the proposed development for the District have been received. Subsection 2-15. Supporting Documentation Pursuant to M. S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the findings that are required in the resolution approving the District. Following is a list of reports and studies on file at the City that support the HRA and City's findings: • Application from Michael Development, January 15, 2010. • Market Study by Maxfield Research, June 4, 2008. • Updated appraisal and market value information, June 2011. Subsection 2-16. Definition of Tax Increment Revenues Pursuant to M.S., Section 469.174, Subd. 25, tax increment revenues derived from a tax increment financing district include all of the following potential revenue sources: 1. Taxes paid by the captured net tax capacity, but excluding any excess taxes, as computed underM.S., Section 469.177; 2. The proceeds from the sale or lease of property, tangible or intangible, to the extent the property was purchased by the Authority with tax increments; 3. Principal and interest received on loans or other advances made by the Authority with tax increments; Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-9 4. Interest or other investment earnings on or from tax increments; 5. Repayments or return of tax increments made to the Authority under agreements for districts for which the request for certification was made after August 1, 1993; and 6. The market value homestead credit paid to the Authority under M.S., Section 273.1384. Subsection 2-17. Modifications to the District In accordance with M.S., Section 469.175, Subd. 4, any: 1. Reduction or enlargement of the geographic area of the District, if the reduction does not meet the requirements ofM.S., Section 469.175, Subd. 4(e); 2. Increase in amount of bonded indebtedness to be incurred; 3. A determination to capitalize interest on debt if that determination was not a part of the original TIF Plan; 4. Increase in the portion of the captured net tax capacity to be retained by the HRA or City; 5. Increase in the estimate ofthe cost ofthe District, including administrative expenses, that will be paid or financed with tax increment from the District; or 6. Designation of additional property to be acquired by the HRA or City, shall be approved upon the notice and after the discussion, public hearing and findings required for approval of the original TIF Plan. Pursuant to M.S. Section 469.175 Subd. 4(fl, the geographic area of the District may be reduced, but shal l not be enlarged after five years following the date of certification of the original net tax capacity by the county auditor. If a housing district is enlarged, the reasons and supporting facts for the determination that the addition to the district meets the criteria of M.S., Section 469.174, Subd. 11 must be documented. The requirements of this paragraph do not apply if (1) the only modification is elimination of parcel(s) from the District and (2) (A) the current net tax capacity ofthe parcel(s) eliminated from the District equals or exceeds the net tax capacity of those parcel(s) in the District's original net tax capacity or (B) the HRA agrees that, notwithstanding M.S., Section 469.177, Subd. 1, the original net tax capacity will be reduced by no more than the current net tax: capacity of the parcel(s) eliminated from the District. The HRA or City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the District. Modifications to the District in the form of a budget modification or an expansion of the boundaries will be recorded in the TIF Plan. Subsection 2-18. Administrative Expenses In accordance with M.S, Section 469.174, Subd. 14, administrative expenses means all expenditures of the HRA or City, other than: 1. Amounts paid for the purchase of land; 2. Amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of the real property in the District; 3. Relocation benefits paid to or services provided for persons residing or businesses located in the District; or 4. Amounts used to pay principal or interest on, fund a reserve for, or sell at a discount bonds issued pursuant to M.S., Section 469.178; or 5. Amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clauses (1) to (3). Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-10 For districts for which the request for certification were made before August 1, 1979, or after June 30, l 982, and before August 1, 2001, administrative expenses also include amounts paid for services provided by bond counsel, fiscal consultants, and planning or economic development consultants. Pursuant to M.S., Section 469.176, Subd. 3, tax increment may be used to pay any authorized and documented administrative expenses for the District up to but not to exceed 10 percent of the total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined by M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. For districts for which certification was requested after July 31, 2001, no tax increment may be used to pay any administrative expenses for District costs which exceed ten percent of total estimated tax increment expenditures authorized by the TIF Plan or the total tax increments, as defined in M.S., Section 469.174, Subd. 25, clause (1), from the District, whichever is less. Pursuant to M.S., Section 469.176, Subd. 4h, tax increments may be used to pay for the County's actual administrative expenses incurred in connection with the District and are not subject to the percentage limits ofM.S., Section 469.176, Subd. 3. The county may require payment ofthose expenses by February 15 ofthe year following the year the expenses were incurred. Pursuant to M.S., Section 469. 177, Subd. 11, the County Treasurer shall deduct an amount (currently .36 percent) of any increment distributed to the HRA or City and the County Treasurer shall pay the amount deducted to the State Treasurer for deposit in the state general fund to be appropriated to the State Auditor for the cost of ftnancial reporting of tax increment financing information and the cost of examining and auditing authorities' use of tax increment financing. This amount may be adjusted annually by the Commissioner of Revenue. Subsection 2-19. Limitation of Increment The tax increment pledged to the payment of bonds and interest thereon may be discharged and the District may be terminated if sufficient funds have been irrevocably deposited in the debt service fund or other escrow account held in trust for all outstanding bonds to provide for the payment of the bonds at maturity or redemption date. Pursuant to M.S., Section 469.176, Subd. 6: if, after four years from the date of certification of the original net tax capacity of the tax incrementfinancingdistrictpursuanttoM.S., Section 469.177, no demolition, rehabilitation or renovation of property or other site preparation, including qualified improvement of a street adjacent to a parcel but not installation of utility service including sewer or water systems, has been commenced on a parcel located within a tax increment financing district by the authority or by the owner ofthe parcel in accordance with the tax incrementfinancing plan, no additional tax increment may be taken from that parcel and the original net tax capacity of that parcel shall be excluded from the original net tax capacity of the tax increment financing district. If the authority or the owner of the parcel subsequently commences demolition, rehabilitation or renovation or other site preparation on that parcel including qualified improvement of a street adjacent to that parcel, in accordance with the tax incrementfinancingplan, the authority shall cert~ to the county auditor that the activity has commenced and the county auditor shall cert~ the net tax capacity thereof as most recently certified by the commissioner of revenue and add it to the original net tax capacity of the tax incrementfinancing district. The county auditor must enforce the provisions ofthis subdivision. The authority must submit to the county auditor evidence that the required activity has taken place for each parcel in the district. The evidence for a parcel must be Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-11 submitted by February 1 of the fifth year following the year in which the parcel was certified as included in the district. For purposes of this subdivision, qualified improvements of a street are limited to (1) construction or opening of a new street, (2) relocation of a street, and (3) substantial reconstruction or rebuilding of an existing street. The HRA or City or a property owner must improve parcels within the District by approximately September 2016 and report such actions to the County Auditor. Subsection 2-20. Use of Tax Increment The HRA or City hereby determines that it will use 100 percent of the captured net tax capacity of taxable property located in the District for the following purposes: 1. To pay the principal of and interest on bonds issued to finance a project; 2. to finance, or otherwise pay public redevelopment costs ofthe Richfield Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047; 3. To pay for project costs as identified in the budget set forth in the TIF Plan; 4. To finance, or otherwise pay for other purposes as provided in M.S., Section 469.176, Subd. 4; 5. To pay principal and interest on any loans, advances or other payments made to or on behalf of the HRA or City or for the benefit of the Richfield Redevelopment Project Area by a developer; 6. To finance or otherwise pay premiums and other costs for insurance or other security guaranteeing the payment when due of principal of and interest on bonds pursuant to the TIF Plan or pursuant to M.S., Chapter 462C. M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178; and 7. To accumulate or maintain a reserve securing the payment when due of the principal and interest on the tax increment bonds or bonds issued pursuant to M.S., Chapter 462C, M.S., Sections 469.152 through 469.165, and/or M.S., Sections 469.178. Revenues derived from tax increment from a housing district must be used solely to finance the cost of housing projects as defined in M.S., Sections 469.174, Subd Il and 469.1761. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the HRA or City may be included in the cost of a housing project. These revenues shall not be used to circumvent any levy limitations applicable to the City nor for other purposes prohibited by M.S, Section 469.176, Subd. 4. Tax increments generated in the District will be paid by Hennepin County to the HRA for the Tax Increment Fund of said District. The HRA or City will pay to the developer(s) annually an amount not to exceed an amount as specified in a developer's agreement to reimburse the costs of land acquisition, public improvements, demolition and relocation, site preparation, and administration. Remaining increment funds will be used for. HRA or City administration (up to 10 percent) and the costs of housing projects outside the District. Subsection 2-21. Excess Increments Excess increments, as defined in M.S., Section 469.176, Subd. 2, shall be used only to do one or more of the following: 1. Prepay any outstanding bonds; 2. Discharge the pledge of tax increment for any outstanding bonds; 3. Pay into an escrow account dedicated to the payment of any outstanding bonds; or 4. Return the excess to the County Auditor for redistribution to the respective taxing jurisdictions in proportion to their local tax rates. Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-12 The HRA or City must spend or return the excess increments under paragraph (c) within nine months after the end of the year. In addition, the HRA or City may, subject to the limitations set forth herein, choose to modify the TIF Plan in order to finance additional public costs in the Richfield Redevelopment Project Area or the District. Subsection 2-22. Requirements for Agreements with the Developer The HRA or City will review any proposal for private development to determine its conformance with the Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the following documents may be requested for review and approval: site plan, construction, mechanical, and electrical system drawings, landscaping plan, grading and storm drainage plan, signage system plan, and any other drawings or narrative deemed necessary by the HRA or City to demonstrate the conformance of the development with City plans and ordinances. The HRA or City may also use the Agreements to address other issues related to the development. Pursuant to M.S., Section 469.176, Subd. S, no more than 10 percent, by acreage, of the property to be acquired in the District as set forth in the TIF Plan shall at any time be owned by the HRA or City as a result of acquisition with the proceeds of bonds issued pursuant to M.S., Section 469.178 to which tax increments from property acquired is pledged, unless prior to acquisition in excess of 10 percent of the acreage, the HRA or City concluded an agreement for the development of the property acquired and which provides recourse for the HRA or City should the development not be completed. Subsection 2-23. Assessment Agreements Pursuant to M.S., Section 469.177, Subd. 8, the HRA or City may enter into a written assessment agreement in recordable form with the developer of property within the District which establishes a minimum market value of the land and completed improvements for the duration of the District. The assessment agreement shall be presented to the County Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, the County Assessor shall also certify the minimum market value agreement. Subsection 2-24. Administration of the District Administration of the District will be handled by the Community Development Director. Subsection 2-25. Annual Disclosure Requirements Pursuant to M.S., Section 469.175, Subds. S, 6, and 6b the HRA or City must undertake financial reporting for all tax increment financing districts to the Office of the State Auditor, County Board and County Auditor on or before August 1 of each year. M.S, Section 469.175, Subd. 5 also provides that an annual statement shall be published in a newspaper of general circulation in the City on or before August 15. If the City fails to make a disclosure or submit a report containing the information required by M.S, Section 469.175 Subd. S and Subd. 6, the OSA will direct the County Auditor to withhold the distribution of tax increment from the District. Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-13 Subsection 2-26. Reasonable Expectations As required by the TIF Act, in establishing the District, the determination has been made that the anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. In making said determination, reliance has been placed upon written representation made by the developer to such effects and upon HRA and City staff awareness ofthe feasibility of developing the project site(s) within the District. Subsection 2-27. Other Limitations on the Use of Tax Increment 1. General Limitations. All revenue derived from tax increment shall be used in accordance with the TIF Plan. The revenues shall be used to finance, or otherwise pay public redevelopment costs of the the Richfield Redevelopment Project Area pursuant to M.S., Sections 469.001 to 469.047. Tax increments may not be used to circumvent existing levy limit law. No tax increment may be used for the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the state or federal government. This provision does not prohibit the use of revenues derived from tax increments for the construction or renovation of a parking structure. 2. Housin;r District Exceptions to Restriction on Poolin;?; Five Year Limit. Tax increment derived from the District must be used solely to finance the cost of housing projects (including administrative expenses and public improvement costs) as defined in M.S. Section 469.174, Subd. I1 and subject to the requirements set forth in M.S. Section 469.1761. Pursuant to M.S. Section 469.1763, Subd. 3 (the "Five Year Rule"), expenditures of tax increment for housing purposes within the Richfield Redevelopment Project Area are considered to be an activity within the District, and therefore, such costs may be reimbursed with tax increment without regard to the Five Year Rule. Subsection 2-28. Summary The Richfield Housing and Redevelopment Authority is establishing the District to provide an impetus for residential development and provide safe and decent life cycle housing in the City. The TIF Plan for the District was prepared by Ehlers & Associates, Inc., 3060 Centre Pointe Drive, Roseville, Minnesota 55113- 1105, telephone (651) 697-8500. Richfield HRA Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) 2-14 Appendix A Project Description The Amended and Restated TIF Plan for the 2010-1 Housing TIF District is being adopted to redevelop the Woodlake Plaza Shopping Center, which is currently a commercial center. According to Woodlake Richfield Apartments, LLC, the property is obsolete as a retail building. The Lyndale Commons development will be located on two parcels currently owned by the developer and one parcel currently owned by the HRA. The Lyndale Commons development will consist of 94 units of rental housing. Currently the plan will include 5 studio apartments, 50 one bedroom apartments, 30 two bedroom apartments and 9 three bedroom apartments. It is planned that 20 percent of the units will be affordable at 50 percent of mediari income. The current design provides two three-story elements defining the edge of Lyndale Avenue. Between these two elements, there is a landscaped courtyard that will provide a very "liveable" amenity for the resident, and will provide green space along Lyndale Avenue. Parking is available with 69 below grade and 65 above grade stalls. It is anticipated that the developer will be issued two pay-as-you-go notes. The Note A will reimburse the developer for a portion of the land acquisition expenses, and the Note B will reimburse the developer for the remainder of the land acquisition expenses and a portion of the site improvements. In addition, the HRA will be paid for the property it owns within the District that it conveys to the developer. It is estimated that the fair market value is $85,000. Appendix A-1 Appendix B Map of the Richfield Redevelopment Project Area and the District Appendix B ~ -o -~ r-I O J ~ ~ r/ ~~ D ^~ ~ 1, j ^'f Q °-Fl ..y n C' ~ ~_ ~ ~-- i ~~! .'_' /" J ~"' ~ ~ C (i G J J S ~ O Q ~ m ~ Q ~ CD U1 0 1~ ~. .-r (D D v z ~ a ¢ r.i _ ti S ~' i ~ FFFFF~'TY~~~~~~~~ XERXES ~ ®® ®®(~(~IITMTMT~}T~T}TTT~TMTTTT~T}TT}~~~®~ N/ASHBURN ®® ®1I11111W1L®® VIN~cE^^ ~ ® ® LLLLLLLLIe ~'.._..®~ XERXES WASHBURN VINCENT UPTDN THOMAS SHE RIDAN RUSSELL OUEEN PENN OLIVER NEWTON MORGAN LOGAN KNOX JAMES IRVINE H!JMBOLDT GIRARD FREMONT CMERSON ouaoNT COLFAX BRVANT ALDRICH Lv NDALE GARFIE LD HARRIET GRAND PLEASANT PILLSB URV 6LAISDELL NICOLLET 1st STEVENS 2ntl BrC OLINTON nm 3 Stn f F+++J.~FFFFFHN LH4lJY~N LFI-L~L4+J LlJJJ~V,A-1,4-114-~4J LLW1J FJ µ1111.,1,_I C.WyIyJ..IJ -aJ11LJ,L WU1lJ.J ~ Q PORTLAND OAKLAND LLLLLl®JLLllJJ1ll®~J~J LLL®1~1~LL1®JLLLLLLLI~JLLLLLllJ~LLLIILII®1U11J1LL®1ULW LLL®JUlLLLWL®11W1J~®1 ~ _, OAKLAND PARK ®®®®®®®®®®® `~~a: PARK coLUMeus ®®®®®®®®®®® ~ -~~~~/) COLUMBUS CHICAGO ((~~~~''7~T~T~ 0®~~L~®®®®~~~ ~~ ~ EuIOGG ELLIOT ®®~~~® L~LLLIJ~~® ~_ ~ - 10th ®®®®~I~T-~{-®~I~T-F~{~-'~~~{TT{--''I~~I~~ ® LLL.JJ.LLL ~ J_'J_JJJ ® ~ y ~ ~~ ` tOlh 111h ®®~~l1LllLlL~ ~~~® ®® 11th 12th ®~~~®~®®~' ' ~~ ~®®~ '. 2:E 13th ~ ®®~ -'~~~~®®®®®®®® l?Ih ibih ~ ®~ ~~T~{-~{~-~ryT ~}~~{}{}}~{}~T~T(~~{~'T~TyT}~HT{THT~I ~ LLLJ_L111 LJJJIIJ ~ ~ ®® ~ Glli 15t1i W.J1J_LU LU111L' W_WJ1ll1L ~iLJllL ®~ ®~ :.I.. BLOOMINGTOM1' ®®~ IF~TF7Iymj''ryT'~F-;~T~~. ~~~,(,~~~-Tye H~yT~~{~T'~TH~~ ~ mTTITT'i ®(Y®~FT~1 ~~TT®T~~(~yI ® BLOOMINGTON 16t1i ®® ~ L11.1:1L1 ~ LIHI+FLI®+1+L~LHI ® 111LJ !'-~-~-w i ~~,i ,aln ~®®~®®~ ';~,; ceoAR ®~ <EDAR s T s s ~ J_ J ~ - ~ a a a 1^+ . Il./~ ITT lV 1--+ • ~~ C C ~ O v ~ I~ . //yy~~~~ y. ~ V~f I..~ ,I I--+ ~] ~p ~... O y ~ /~~ TT\ lV ~ ^O . lI r~ 1~ ... e~-r `t/f• Appendix C Description of Property to be Included in the District The District encompasses all property and adjacent rights-of--way and abutting roadways identified by the parcels listed below. Parcel Numbers Address Owner 27-028-24-23-0092 6401 Lyndale Avenue South Woodlake Plaza Partnership 27-028-24-23-0060 521 64t`' Street West Woodlake Plaza Partnership 27-028-24-23-0059 515 64t`' Street West Richfield HRA Appendix C-1 Appendix D Estimated Cash Flow for the District Appendix D-1 w n m 3 0 W N ~ Z 0 d O~ A N N N J J J 0 0 0 R C N •• ~c ~ m N N N www ti .~ < w 3 c N N N A A A ~ O T T Y T N { n~ T~~ _= m T (7 ~ Q ~' ~ ~ m m m v,- m m %n ~ x. ~' ~ ~ ~ m ~ n i i. i n i w w w o o ~ ~ ~ ~ 3 u, ~ ~ ~ ? w ~ o ~ j ~ ~ o o ~~ ~ 0 p p~ p N o ~ m - c m ~ A ~ o m -o <° o~ m m °-' m d m D ~ n~ ° ' ~ m n 3 m m~ % ~ a m o m a o ~ o - ~.o ~ w ~ m~ y: . : { ~~ ~ Q O n Z _ .N. ~ ~< CC ~< G ~ ~ O r~ ~ G ~ ~ d Z O ~DJ o ~ sum p gOm m~ m o ~' n ~ N d ~ Cn _ 6 'a o ~ ~~ d m ~ co o T~ o? T y m Z7 •Z ~ o m i n ~ _ v, v, O D m ~ 3 - .y^^'< w% N D1~ ao 003 m~ z~ o~ y c o = n z P m d W N ~ n> Oi x d N _. 3 n .. 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O tDA ~ ~ N Q C O, ~. ~_ Q ~ ~ ~ m 3 ~ `` ° _ _^ r ~~o ~. , ~ m o ~ ~~ '-h C ~ ~/ Q Q T~ C V N p1 N ~ N ~ ,~ 2 ~D N 7 7 ~_ ^^• lI Q IK N A (D 3 O lD Appendix E Housing Qualifications for the District INCOME RESTRICTIONS -ADJUSTED FOR FAMILY SIZE (HOUSING DISTRICT) -HENNEPIN COUNTY HENNEPIN COUNTY MEDIAN INCOME:. $83,900 No. of Persons 50% of Median Income 60% of Median Income 1-person $29,400 $35,280 2-person $33,600 $40,320 3-person $37,800 $45,360 4- erson $42,000 $50,400 Source: Department of Housing and Urban Development and Minnesota Housing Finance Agency The two options for income limits on a standard housing district are 20% of the units at 50% of median income or 40% of the units at 60% of median income. There are no rent restrictions for a housing district. Appendix E-1 Appendix F Findings for the District The reasons and facts supporting the findings for the adoption of the Amended and Restated Tax Increment Financing Plan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) is a housing district as defined in M.S., Section 469.174, Subd. 11. The 2010-1 Housing TIF District (Woodlake Housing) consists of three parcels. The development will consist of 94 units of rental housing. All or a portion of the units which will receive tax increment assistance will meet income restrictions described in M.S. 469.1761 for the duration of the District. At least 20 percent of the units receiving assistance will have incomes at or below 50 percent of statewide median income. Appendix E of the TIF Plan contains background for the above finding. 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment. The cost of land acquisition and site and public improvements makes this housing development infeasible without City assistance. Due to the high cost of building affordable new housing in the City and the cost of financing the proposed public improvements, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter and a proforma as justification that the developer would not have gone forward without tax increment assistance. This finding is justified on the grounds that the cost of land acquisition and site and public improvements add to the total development cost. Historically, site development costs in this area have made development infeasible without tax increment assistance. This site has been owned and operated by Michael Development for over 17 years. The site is currently over 50% vacant, despite extensive leasing efforts and installation of a new facade and sign band in 2003. In addition, the HRA site has been vacant for several years and was purchased by the HRA in 2007, at which time it became tax exempt. The City reasonably determines that no other development of similar scope is anticipated on this site without substantially similar assistance being provided to the development. The City has relied upon budgetary figures and cost estimates submitted by the developer for the development ofthe proposed rental housing. These analyses show that in order to promote the development of affordable housing in the City, financial assistance is needed to reduce the costs of land acquisition. The construction of the proposed housing is cost prohibitive without the use of tax increment due to several factors, including the following: (1) the difficulty in obtaining low cost financing in the current economic market; (2) the cost of acquisition; (3) affordable housing does not generate sufficient revenues to offset the increased start up costs. The tax increment derived from the TIF District will be used to reimburse the HRA for land acquisition and assist with the refinancing of the other two parcels. With this assistance, the land can be provided to the developer at a significantly reduced cost and therefore help the developer bridge the gap in financing the project. 3. Finding that theTlFPlanforthe2010-1 Housing Tax lncrementFinancingDistrict(WoodlakeHousing) conforms to the general plan for the development or redevelopment of the municipality as a whole. The Planning Commission met on August 22, 2011, and reviewed the TIF Plan and found that the TIF Plan conforms to the general development plan of the City. Appendix F-1 4. Finding that the TIFPIan for the 2010-1 Housing Tax Increment Financing District (Woodlake Housing) will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. Through the implementation of the TIF Plan, the HRA and City will provide an impetus for affordable residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City. Appendix F-2 AGENDA SECTION: PUBLIC HEARINGS AGENDA ITEM # 8 REPORT # 186 J STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: JULIE EDDINGTON, BOND COUNSEL/CHRIS REGIS, FINANCE MANAGER NAME; TITLE ITEM FOR COUNCIL CONSIDERATION: Public Hearing and consideration of a resolution regarding the financing of a multifamily rental housing development to be undertaken by Woodlake Richfield Apartments, LLC. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve a resolution authorizing the issuance, sale and delivery of the City's Variable Rate Demand Multifamily Housing Revenue Bonds (Woodlake Richfield Apartments Project), Series 2011; Adopting a Housing Program pursuant to Minn. Stat. Chapter 462C; Approving the form of and authorizing execution and delivery of the bonds and related documents; and granting approval for certain other actions with respect thereto II. BACKGROUND • Woodlake Richfield Apartments, LLC, a Minnesota limited liability company (the "Borrower"), has proposed that the City of Richfield (the "City"), issue its revenue bonds, in one or more series, at a variable rate of interest, in order to finance a portion of the acquisition, construction, and equipping of an approximately 110,000 square foot multifamily rental housing development known as the "Woodlake Apartments," consisting of 94 units of market rate and affordable apartments, three and four stories tall with underground 390942v2 JAE RC145-630 parking, located at 6401-6429 Lyndale Avenue South in the City (the "Project"). • The Borrower proposes to use the proceeds of the proposed revenue bonds to finance a portion of (i) the acquisition, construction, and equipping of the Project, (ii) the payment of interest during the construction of the Project, (iii) the funding of a reserve fund, if necessary, and (iv) the payment of costs of issuing the bonds. • Prior to the issuance of the bonds, the City must conduct a public hearing as required by Minnesota Statutes, Chapter 462C (the "Act"), and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"). • The Borrower has requested that the City conduct a public hearing on the issuance of the proposed revenue bonds and that the City approve a housing program, pursuant to the Act, following the public hearing. • Pursuant to Section 146 of the Code, the proposed revenue bonds must receive an allocation of bonding authority of the State of Minnesota. Pursuant to the requirements of Minnesota Statutes, Chapter 474A, as amended, the City will apply for allocation of bonding authority from the State of Minnesota. • The City would only serve as a conduit for the Project financing. The City would not incur any financial liability as a result of the issuance of the debt, nor would the City incur any out-of-pocket expenses. • As a condition to the consideration of the issuance of such bonds, the City requires that the Borrower submit an application to the City with respect to the proposed revenue bonds. III. BASIS OF RECOMMENDATION A. POLICY • Under Minnesota Statutes, Chapter 462C, the City has authority to issue revenue bonds. • Under Minnesota Statutes, Chapter 474A, the proposed revenue bonds require allocation of bonding authority of the State of Minnesota. • An application to the Minnesota Department of Finance for an allocation of bonding authority to finance the project must also be submitted. • The Borrower has submitted an Application for Tax Exempt Bond Financing to the City with respect to the proposed bonds. • As a condition of the issuance of the revenue bonds, the City must adopt a Housing Program providing the information required by Minnesota Statutes Chapter 462C. B. CRITICAL TIMING ISSUES • The issuance of the proposed housing revenue bonds will not impact the City's ability to issue its own general obligation "bank-qualified" bonds in an amount of up to $10,000,000 in calendar year 2011 since the proposed housing revenue bonds do not count towards the $10,000,000 cap on "bank-qualified" bonds. 390942v2 JAE RC145-630 C. FINANCIAL • The amount of the proposed revenue bonds is not expected to exceed $15,000,000. The Borrower will pay certain other costs of the financing out of Borrower equity funds. • The bonds will be issued in the City's name, but will not be a charge against the City's general credit or taxing powers. The City will act as a conduit for the financing of the project. It does not create any financial liability to the City. • The City is to be reimbursed and held harmless for and from any out- of-pocket expenses related to the tax exempt financing, including, but not limited to, legal fees, financial analyst feed, bond counsel fees, staff costs, and any deposits or application fees required under state law in order to secure allocation of bonding authority. • The Borrower will be charged anon-refundable application fee of $2,500 and an annual administrative fee in the amount of 1/8th of 1 (0.125%) of the outstanding principal balance of the issue. D. LEGAL • Kennedy & Graven will serve as bond counsel for the issue. • A public hearing will be required as part of the issuance of the proposed revenue bonds. • Notice of the public hearing was published on August 25,.2011 in the Sun Newspapers. Time and date of the public hearing is at 7:00 p.m. on September 13, 2011. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Forgo approving the attached resolution and not proceed with the issuance of the private activity revenue bonds. V. ATTACI~VIENTS • Resolution giving final approval for the issuance of revenue bonds to finance the costs of the multifamily housing development and authorizing the execution and delivery of related documents. • Program for a multifamily housing development. VI. PRINCIl'AL PARTIES EXPECTED AT MEETING • Julie Eddington, Kennedy & Graven, Chartered • Representative from Woodlake Richfield Apartments, LLC 390942v2 JAE RC145-630 CITY OF RICHFIELD ~ ~ RESOLUTION NO. RESOLUTION AUTHORIZING THE ISSUANCE, SALE, AND DELIVERY OF THE CITY'S VARIABLE RATE DEMAND. MULTIFAMILY HOUSING REVENUE BONDS (WOODLAKE RICHFIELD APARTMENTS, LLC PROJECT), SERIES 2011; ADOPTING A HOUSING PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS AND RELATED DOCUMENTS WHEREAS, the City of Richfield, Minnesota (the "City"), is a home rule city and political subdivision of the State of Minnesota; and WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to carry out the public purposes described in the Act by issuing revenue bonds to finance multifamily housing developments located within the City, and as a condition to the issuance of such revenue bonds, adopt a housing program providing the information required by Section 46X.03, subdivision la, of the Act; and WHEREAS, Woodlake Richfield Apartments, LLC, a Minnesota limited liability company (the "Borrower"), or a related entity, has requested that the City issue its revenue bonds under the Act and lend the proceeds thereof to the Borrower to finance the following: (i) the acquisition, construction, and equipping of a 94-unit multifamily rental housing development located at 6401-6429 Lyndale Avenue South in the City (the "Project"); (ii) the payment of interest on the bonds during the construction of the Project; (iii) the funding of required reserves, if any; and (iv) the payment of certain costs related to the issuance of the bonds; and WHEREAS, the Project is designed as market-rate housing with twenty percent (20%) of the units reserved for rental to and occupancy by persons and families of low and moderate income; and WHEREAS, the City has prepared a housing program (the "Housing Program") to authorize the issuance by the City of revenue bonds in the principal amount of approximately $15,000,000 to finance the acquisition, construction, and equipping by the Borrower of the Project; and WHEREAS, the Housing Program was prepared and submitted to the Metropolitan Council for its review and on August 24, 2011, the City received correspondence from the Metropolitan Council acknowledging receipt of the Housing Program and providing its comments with respect to the Housing Program and the Project; and WHEREAS, a notice of public hearing (the "Public Notice") was published in the Sun-Current, the official newspaper and a newspaper of general circulation in the City, with respect to the required public hearing under Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code") and the required public hearing under Section 46X.04, subdivision 2 of the Act; and WHEREAS, the Public Notice was published at least fifteen (15) days before the regularly scheduled meeting of the City Council of the City, and on the date hereof, the City Council conducted a public hearing at which a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing; -and ~a WHEREAS, the Borrower has requested that the City issue, sell, and deliver its Variable Rate Demand Multifamily Housing Revenue Bonds (Woodlake Richfield, Apartments, LLC Project), Series 2011 (the "Bonds"), in an original aggregate principal amount not to exceed $15,000,000; and WHEREAS, on August 9, 2011, the City Council adopted Resolution No. 10540, authorizing the submission of an application to the office of Minnesota Management and Budget for an allocation of bonding authority with respect to the Bonds to finance the Project in accordance with the requirements of Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act"), and providing preliminary approval for the sale and issuance of the Bonds in the approximate aggregate principal amount of $15,000,000; and WHEREAS, the proceeds derived from the sale of the Bonds will be loaned by the City to the Borrower pursuant to the terms of a Loan Agreement, dated on or after September 1, 2011 (the "Loan Agreement"), between the City and the Borrower, whereby the City will apply the proceeds derived from the sale of the Bonds to fund a loan to the Borrower; and WHEREAS, the Bonds will be issued pursuant to this resolution and an Indenture of Trust, dated on or after September 1, 2011 (the "Indenture"), between the City and U.S. Bank National Association, a national banking association, as trustee (the "Trustee"), and the Bonds and the interest on the Bonds: (i) shall be payable solely from the revenues pledged therefor under the Loan Agreement and additional sources of revenue provided by or on behalf of the Borrower; (ii) shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers; (iv) shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the City's interest in the Loan Agreement; and (v) shall not constitute a general or moral obligation of the City; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF RICHFIELD, MINNESOTA, AS FOLLOWS: 1. The City acknowledges, finds, determines, and declares that the issuance of the Bonds is authorized by the Act and is consistent with the purposes of the Act and that the issuance of the Bonds, and the other actions of the City under the Indenture, the Loan Agreement, and this resolution constitute a public purpose and are in the interests of the City. In authorizing the issuance of the Bonds for the financing of the Project and the related costs, the City's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by providing multifamily housing developments for low or moderate income residents of the City and otherwise furthering the purposes and policies of the Act. 2. For the purposes set forth above, there is hereby authorized the issuance, sale, and delivery of the Bonds in one or more series in the maximum aggregate principal amount not to exceed $15,000,000. The Bonds shall bear interest at the rates, shall be designated, shall be numbered, shall be dated, shall mature, shall be in the aggregate principal amount, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other terms, details, and provisions as are prescribed in the Indenture, in the form now on file with the City, with the amendments referenced herein. The City hereby authorizes the Bonds to be issued, in whole or in part, as "tax-exempt bonds," the interest on which is not includable in gross income for federal and State of Minnesota income tax purposes. All of the provisions of the Bonds, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Bonds shall be substantially in the form in the Indenture on file with the City, which form is hereby approved, with such necessary and appropriate variations, omissions, and insertions (including changes to the aggregate principal amount of 2 ~3 the Bonds, the stated maturities of the Bonds; the interest rates on the Bonds and the terms of redemption of the Bonds) as the Mayor and the City Manager, in their discretion, shall determine. The execution of the Bonds with the manual or facsimile signatures of the Mayor and the City Manager and the delivery of the Bonds by the City shall be conclusive evidence of such determination. 3. The Bonds shall be special, limited obligations of the City payable solely from the revenues provided by the Borrower pursuant to the Loan Agreement and other funds pledged pursuant to the Indenture and from payments made pursuant to an Irrevocable Letter of Credit, dated on or after September 1, 2011 (the "Letter of Credit"), issued by Wells Fargo Bank, N.A., a national banking association (the "Bank"), pursuant to the terms of a Reimbursement Agreement, dated on or after September 1, 2011 (the "Reimbursement Agreement"), between the Borrower and the Bank. The City Council of the City hereby authorizes and directs the Mayor and the City Manager to execute the Indenture, and to deliver the Indenture to said Trustee, and hereby authorizes and directs the execution of the Bonds in accordance with the terms of the Indenture, and hereby provides that the Indenture shall provide the terms and conditions, covenants, rights, obligations, duties, and agreements of the owners of the Bonds, the City and the Trustee as set forth therein. All of the provisions of the Indenture, when executed as authorized herein, shall be deemed to be apart of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Indenture shall be substantially in the form on file with the City, which is hereby approved, with such necessary and appropriate variations, omissions and insertions as do not materially change the substance thereof, and as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determination. 4. The Mayor and the City Manager are hereby authorized and directed to execute and deliver the Loan Agreement and the Bond Purchase Agreement, dated on or after September 1, 2011 (the "Bond Purchase Agreement"), between Piper Jaffray & Co. (the "Underwriter"), the City, and the Borrower. All of the provisions of the Loan Agreement and Bond Purchase Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Loan Agreement and Bond Purchase Agreement shall be substantially in the forms on file with the City which are hereby approved, with such omissions and insertions as do not materially change the substance thereof, and as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determinations. 5. To ensure compliance with certain rental and occupancy restrictions imposed by the Act and Section 142(d) of the Code, and to ensure compliance with certain restrictions imposed by the City, the Mayor and City Manager are also hereby authorized and directed to execute and deliver a Regulatory Agreement, dated on or after September 1, 2011 (the "Regulatory Agreement"), between the City, the Borrower, and the Trustee. All of the provisions of the Regulatory Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Regulatory Agreement shall be substantially in the form on file with the City which is hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determination. 6. The Bonds shall be special, limited revenue obligations of the City, the proceeds of which shall be disbursed pursuant to the terms of the Indenture and the Loan Agreement, and the principal, premium, and interest on the Bonds shall be payable solely from the proceeds of the Bonds, the revenues derived from the Loan Agreement, and the other sources set forth in the Indenture. ,~ 7. The Trustee is hereby appointed as Paying Agent and Bond Registrar for the Bonds. 8. The Mayor and the City Manager are hereby authorized to execute and deliver, on behalf of the City, such other documents and certificates as are necessary or appropriate in connection with the issuance, sale, and delivery of the Bonds, including an Assignment of Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents, dated on or after September 1, 2011 (the "Assignment of Mortgage"), from the City to the Bank, various certificates of the City, an Information Return for Tax-Exempt Private Activity Bond Issues, Form 8038 (Rev. April 2011), with respect to the Bonds, a certificate as to arbitrage and rebate, and similar documents, and all other documents and certificates as shall be necessary and appropriate in connection with the issuance, sale, and delivery of the Bonds. The City hereby approves the execution and delivery by the Trustee of the Indenture and all other instruments, certificates, and documents prepared in conjunction with the issuance of the Bonds that require execution by the Trustee. The City hereby authorizes Kennedy & Graven, Chartered, as bond counsel, to prepare, execute, and deliver its approving legal opinions with respect to the Bonds. 9. The City has not participated in the preparation of the Limited Offering Memorandum relating to the offer and sale of the Bonds (the "Limited Offering Memorandum"), and has made no independent investigation with respect to the information contained therein, including the appendices thereto, and the City assumes no responsibility for the sufficiency, accuracy, or completeness of such information. Subject to the foregoing, the City hereby consents to the distribution and the use by the Underwriter of the Limited Offering Memorandum in connection with the offer and sale of the Bonds. The Limited Offering Memorandum is the sole material consented to by the City for use in connection with the offer and sale of the Bonds. 10. Except as otherwise provided in this resolution, all rights, powers, and privileges conferred and duties and liabilities imposed upon the City or the City Council by the provisions of this resolution or of the aforementioned documents shall be exercised or performed by the City or by such members of the City Council, or such officers, board, body or agency thereof as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation or agreement of any member of the City Council of the City, or any officer, agent or employee. of the City in that person's individual capacity, and neither the City Council of the City nor any officer or employee executing the Bonds shall be personally liable on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. No provision, covenant or agreement contained in the aforementioned documents, the Bonds, or in any other document relating to the Bonds, and no obligation therein or herein imposed upon the City or the breach thereof, shall constitute or give rise to a general or moral obligation of the City or any pecuniary liability of the City or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants, and representations set forth in such documents, the City has not obligated itself to pay or remit any funds or revenues, other than funds and revenues derived from the Loan Agreement which are to be applied to the payment of the Bonds, as provided therein. 11. Except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied is intended or shall be construed to confer upon any person or firm or corporation, other than the City, any holder of the Bonds issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provisions hereof, this resolution, the aforementioned documents, and all of their provisions being 4 g-5 intended to be and being for the sole and exclusive benefit of the City, and any holder from time to time of the Bonds issued under the provisions of this resolution. 12. In case any one or more of the provisions of this resolution, other than the provisions contained in the first sentence of Section 6 hereof, or of the aforementioned documents, or of the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Bonds, but this resolution, the aforementioned documents, and the Bonds shall be construed and endorsed as if such illegal or invalid provisions had not been contained therein. 13. The Bonds, when executed and delivered, shall contain a recital that they are issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions, and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds, and to the execution of the aforementioned documents to happen, exist, and be performed precedent to the execution of the aforementioned documents have happened, exist, and have been performed as so required by law. 14. The officers of the City, bond counsel, other attorneys, engineers, and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution, the aforementioned documents, and the Bonds, for the full, punctual, and complete performance of all the. terms, covenants, and agreements contained in the Bonds, the aforementioned documents, and this resolution. If for any reason the Mayor or the City Manager is unable to execute and deliver the documents referred to in this resolution, such documents may be executed by any member of the City Council or any officer of the City delegated the duties of the Mayor or the City Manager with the same force and effect as if such documents were executed and delivered by the Mayor or the City Manager. 15. The Borrower shall pay the administrative fee of the City on the date of issuance of the Bonds and on each anniversary of the date of issuance of the Bonds, in the amount of one-eighth of one percent (0.125%) of the outstanding principal amount of the Bonds as of each such payment date. The Borrower will also pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued, including any costs for attorneys' fees. 16. This resolution shall be in full force and effect from and after its approval. Adopted by the City Council of the City of Richfield, Minnesota, on this 13th day of September, 2011. CITY OF RICHFIELD, MINNESOTA Debbie Goettel, Mayor Attest: Nancy Gibbs, City Clerk RC145-630 (JAE) 389673v1 -lv CITY OF RICHFIELD, MINNESOTA PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Richfield, Minnesota (the "City"), is authorized to develop and administer programs to finance the acquisition, construction, and equipping of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Section 46X.07 of the Act provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has received a proposal that it approve a program providing for the acquisition, construction, and equipping of a 94-unit multifamily rental housing development located at 6401-6429 Lyndale Avenue South in the City (the "Project"). The Project is to be funded in part through the issuance of a series of revenue bonds in the principal amount of approximately $15,000,000 to be issued by the City (the "Bonds"), the proceeds of which will be loaned to Woodlake Richfield Apartments, LLC, a Minnesota limited liability company (the "Company"), to finance the acquisition, construction, and equipping of the Project. A portion of the acquisition, construction, and equipping of the Project will be funded from an equity contribution of the Company in the amount of approximately $1,000,000. It is expected that a portion of the dwelling units of the Project will be subject to occupancy limits imposed by federal income tax law and regulations such that only persons and families within designated income limits will be permitted to occupy such units. The City, in establishing this multifamily housing program (the "Program"), has considered the information contained in the City's comprehensive plan. The Project will be constructed in accordance with the requirements of Subdivisions 1 and 2 of Section 46X.05 of the Act. Section A. Definitions. The following terms used in this Program shall have the following meanings, respectively: "Act" shall mean Minnesota Statutes, Chapter 462C, as currently in effect and as the same may be from time to time amended. "Bonds" shall mean the revenue bonds to be issued by the City. "City" shall mean the City of Richfield, Minnesota. "Company" shall mean Woodlake Richfield Apartments, LLC, a Minnesota limited liability company. "Housing Unit" shall mean any one of the dwelling units financed with the Bonds, each located in the Project, occupied by one person or family, and containing complete living facilities. "Land" shall mean the real property upon which the Project is situated. "Program" shall mean this housing program for the financing of the Project pursuant to the Act. ~,'I "Project" shall mean the residential rental housing development consisting of 94 Housing Units located at 6401-6429 Lyndale Avenue South in the City, to be acquired, constructed, and equipped by the Company. Section B. Program for Financing the Project. It is proposed that the City establish this Program to provide financing for the acquisition, construction, and equipping of the Project at a cost and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between the City, the initial purchaser of the Bonds, and the Company. The City expects to issue the Bonds as soon as the terms of the Bonds have been agreed upon by the City, the Company, and the initial purchaser of the Bonds. The proceeds of the Bonds will be loaned to the Company to finance the acquisition, construction, and equipping of the Project, to fund required reserves, to pay interest on the Bonds during construction of the Project, and to pay the costs of issuing the Bonds. It is expected that a trustee will be appointed by the City to provide for the payment of the principal of and interest on the Bonds. It is anticipated that the Bonds will have a maturity of approximately forty (40) years or less and will bear interest at a variable rate or at fixed rates consistent with the market at the time of issuance. The City will hire no additional staff for the administration of the Program. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Section C. Standards and Requirements Relating to the Financing of the Project Pursuant to the Pram. The following standards and requirements shall apply with respect to the operation of the Project by the Company pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be applied to the acquisition, construction, and equipping of the Project, the payment of the costs of issuing the Bonds, the payment of interest on the Bonds during the construction of the Project, and the funding of appropriate reserves. The proceeds of the Bonds will be made available to the Company pursuant to the terms of a loan agreement (or other revenue agreement) which will include certain covenants to be made by the Company to the City regarding the use of proceeds and the character and use of the Project. (2) The Project qualifies as a "multifamily housing development" within the meaning of the Act, since it is comprised of an apartment facility, the units of which are rented to persons or families for use as residences. (3) The Company, and any subsequent owner of the Project, will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (4) It is expected that twenty percent (20%) of the Housing Units will be held for occupancy by families or individuals with gross income not in excess of fifty percent (50%) of median family income, adjusted for family size. This set aside would satisfy the low-income occupancy requirements of Section 46X.05, Subdivision 2, of the Act, if they were applicable. The current rents at the Project are not expected to change significantly as a result of this financing. The current monthly rental payments for the fifty-five (55) one-bedroom units of the Project are between $787 and $1,250. The current monthly rental payments for the thirty (30) 2 g-g two-bedroom units of the Project are between $1,475 and $1,650. The current monthly rental payments for the nine (9) three-bedroom units of the Project are between $1,735 and $1,750. Section D. Evidence of Compliance. The City may require from the Company at or before the issuance of the Bonds evidence satisfactory to the City of compliance with the standards and requirements for the making of the financing established by the City, as set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Company in order to confirm such ability, intention and compliance. In addition, the City may periodically require certification from either the Company or such other person deemed necessary concerning compliance with various aspects of this Program. Section E. Issuance of Bonds. To finance Project the City will by resolution authorize, issue and sell its revenue bonds in an aggregate principal amount of approximately $15,000,000. The Bonds will be issued pursuant to Section 46X.07, Subdivision 1, of the Act, and will be payable primarily from the revenues of the Project. The costs of the Project, including capitalized interest, costs of issuance of the Bonds, and required reserve funds, if any, are presently expected to be in excess of the principal amount of the Bonds. It is expected that the Company will contribute to the Project the difference between the total costs of the Project and the principal amount of the Bonds available to finance the Project. The costs of the Project may change between the date of preparation of this Program and the date of issuance of the Bonds. The Bonds are expected to be issued in September, 2011. Section F. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Section G. Amendment. The City shall not amend this Program, while Bonds authorized hereby are outstanding, to the detriment of the holders of such Bonds. Section H. State Ceiling. (1) An application for an allocation of a portion of the annual volume cap for private activity bonds will be made to the office of Minnesota Management & Budget, pursuant to Section 146 of the Internal Revenue Code of 1986, as amended (the "Code"), and Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act"). (2) Pursuant to the terms and requirements of the Allocation Act: (i) the Project will meet the requirements of Section 142(d) of the Code regarding the incomes of the occupants of the Project; and (ii) the maximum rent for at least twenty percent (20%) of the Housing Units will not exceed the area fair market rent or exception fair market rents for existing housing, if applicable, as established by the United States Department of Housing and Urban Development. (3) Prior to the issuance of the Bonds, the Company will enter into an agreement with the City that specifies the maximum rental rates of twenty percent (20%) of the units in the Project and the income levels of the residents of the Project occupying the income-restricted units. Such rental rates and income levels must be within the limitations established in accordance with the preceding paragraph (2). The Company will be required to annually certify to the City over the term of the agreement that the rental rates for the rent-restricted units are within the limitations under the preceding paragraph (2). The City may request individual certification of the income of residents of the income-restricted units of the Project. The office of Minnesota Management & Budget may request from the City a copy of the annual certification ~,~1 prepared by the Company. The office of Minnesota Management & Budget may require the City to request individual certification of all residents of the income-restricted units of the Project. (4) The City will monitor Project compliance with the rental rate and income level requirements established under the preceding paragraph (2). The City may issue an order of noncompliance if the Project is found by the City to be out of compliance with the rental-rate or income-level requirements established under the preceding paragraph (2). The Company shall pay a penalty to the City equal to one-half of one percent of the total amount of the Bonds issued under the Act for the Project if the City issues an order of noncompliance. For each additional year the Project is out of compliance, the annual penalty must be increased by one-half of one percent of the principal amount of the Bonds issued under the Act for the Project. The City may waive insubstantial violations. This Program relates solely to the Project described herein. This Program is separate and distinct from any and all housing policies established by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. RC145-630 (JAE) 389454v2 4 AGENDA SECTION: PROPOSED ORDINANCE AGENDA ITEM # 9 REPORT # 187 ~~ STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Conduct a second reading of an ordinance amending the City's Zoning Ordinance. The proposed ordinance will increase permissions for horticulture/community gardens, animal kennels, and. tattoo shops in certain areas; reduce commercial setbacks in certain areas and remove contradictory minimum lot area requirements from multi-family districts. Consider summary publication of the proposed ordinance I. RECOMMENDED ACTION: By Motion: 1. Approve an ordinance amending Subsections 512.03; 512.07; 512.09; 525.11, Subdivision 1; 527.11, Subdivision 1; 532.11, Subdivisions 1 and 2; 534.11, Subdivisions 1 and 2; 537.03, Subdivision 1; 544.13, Subdivision 5 and by adding new Subsection 534.07, Subdivision 24 and Subsection 537.05, Subdivision 11 related to horticulture, animal kennels, minimum lot areas, setbacks and tattoo shops. 2. Approve a resolution authorizing summary publication of an ordinance amending Subsections 512.03; 512.07; 512.09; 525.11, Subdivision 1; 527.11, Subdivision 1; 532.11, Subdivisions 1 and 2; 534.11, Subdivisions 1 and 2; 537.03, Subdivision 1; 544.13, Subdivision 5 and by adding new Subsection 534.07, Subdivision 24 and Subsection 537.05, Subdivision 11 related to horticulture, animal kennels, minimum lot areas, setbacks and tattoo sho s. 091311 - 2nd Reading -Ord Amend: MF, Kennels, Tattoo, Gardens, Setbacks MELISSA POEHLMAN, CITY PLANNER II. BACKGROUND City staff continually monitors and notes areas of the Zoning Code that may require review. This review may be the result of changes in State Law or its interpretation, changes in social norms, new technology or direct experience with a particular regulation. Further, the Zoning Code is the implementation tool. that helps the City bring to life its vision for the future as demonstrated by the Comprehensive Plan and other redevelopment/revitalization plans. Horticulture/Community Garden Horticulture is currently permitted only when the land in question cannot be put to any other use. The proposed change will allow horticulture or community gardens as an accessory to an established institutional use (e.g. school, church, park); provided that the area is maintained in a clean and sanitary manner. Animal Kennels The proposed change expands the area in which animal kennels are allowed (Mixed Use Districts provided that soundproofing is installed) and conditionally permits outdoor relief area provided that a number of conditions related to location, screening, supervision and maintenance are met. Tattoo Shops Adult businesses are currently permitted in the Mixed Use -Community and Mixed Use -Regional Districts; however, the ordinance is silent on the issue of tattoo shops in these districts. Multi-Family Residential Districts The City's Comprehensive Plan dictates residential densities throughout the City. Currently there are also dimensional zoning requirements that prescribe densities (minimum lot area per unit) in the multi-family residential districts and these two prescriptions are often in conflict. The proposed change will remove minimum lot area per unit requirements from the Zoning Code and allow the Comprehensive Plan to guide densities (as is required by the Metropolitan Council). Commercial Setbacks • The proposed ordinance will reduce commercial setbacks adjacent to single- and two-family dwellings to equal that of parking lots. In the Neighborhood Business (C-1) District, this will reduce rear and side principal building setbacks from 15 feet to 10 feet. In the General Commercial (C-2) District, this will reduce rear and side principal building setbacks from 20 feet to 15 feet. The side setback for accessory buildings in both districts will be reduced to 8 feet. • A number of area studies conducted for the City recently (e.g. Penn Avenue Plan, 66th Street Corridor Plan) have called for buildings to be pulled up closer to the street in order to create a more pedestrian-friendly environment. Current zoning regulations do not allow for this and thus such developments would either have to be handled as Planned Unit Developments (if the site is one acre or larger) or request variances (unlikely to be granted based on criteria). The proposed ordinance change will allow front setbacks along arterial roads to be reduced to five feet, so long as a customer entrance is provided along that wall of the building. The proposed ordinance also introduces a maximum front setback along arterial roads (40 feet or the average front setback on abutting lots, not to exceed 60 feet). III. BASIS OF RECOMMENDATION A. POLICY • Ongoing review and periodic updating of the Code is necessary to ensure that regulations are serving their intended purposes. • The Zoning Code is the manner by which the City implements its Comprehensive Plan and other redevelopment/revitalization plans. • In instances when the full text of an amendment is cumbersome and the expense of publication of the full text is not justified, the City is permitted to publish a summary of the approved amendment. B. CRITICAL TIMING ISSUES • None C. FINANCIAL • None D. LEGAL • A public hearing was held before the Planning Commission on July 25, 2011. • Notice of the public hearing was published in the Sun Current in accordance with State and Local requirements. • The Planning Commission considered the proposed items at a study session in May and recommended approval of the attached ordinance (8-0). • A first reading was held on August 9, 2011. • If approved, the proposed changes become effective 30 days following publication in the Sun Current Newspaper. E. ENVIRONMENTAL CONSIDERATIONS • None IV. ALTERNATIVE RECOMMENDATION(S~ • Approve a second reading of the proposed ordinance with minor additional changes. • Deny a second reading of the proposed ordinance. V. ATTACHMENTS • Ordinance Resolution for summary publication VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None q-I BILL NO. AMENDMENT TO RICHFIELD CITY CODE RELATED TO ZONING AMENDING SUBSECTIONS 512.03; 512.07; 512.09; 525.11, SUBDIVISION 1; 527.11, SUBDIVISION 1; 532.11, SUBDIVISIONS 1 AND 2; 534.11, SUBDIVISIONS AND 2; 537.03, SUBDIVISION 1; 544.13, SUBDIVISION 5 AND BY ADDING NEW SUBSECTION 534.07, SUBDIVISION 24 AND SUBSECTION 537.05, SUBDIVISION 11 RELATED TO HORTICULTURE, ANIMAL KENNELS, MINIMUM LOT AREAS, SETBACKS AND TATTOO SHOPS THE CITY OF RICHFIELD DOES ORDAIN: Section 1 Subsection 512.03 of the Richfield City Code is amended to read as follows: 512.03. Permitted uses in all districts.. Except when otherwise noted, the following uses shall be construed to be permitted in all zoning districts within the City. a) Public streets and highways; b) Underground public utilities; c) Parks and related recreational facilities owned by a governmental unit; d) Solar equipment as an accessory use; and e) Horticulture , . /community gardens as an accessory to an established institutional use (school, church, park), provided that plants and related materials are maintained in a clean and orderly manner and that waste is disposed of appropriately. Section 5 Subsection 512._07 of the Richfield City Code is amended to read as follows: 512.07. Permitted, Conditional, Accessory and Prohibited Uses in Commercial Districts. The following table summarizes which land uses are classified as permitted, accessory, conditional or prohibited in the Commercial Districts. Refer to Sections 529 through 534 for complete regulations. P: Permitted A: Accessory C: Conditional va N: Null or not Permitted Land Use S-O C-1 C-2 :Adult businesses . . ... ............................................. N F.................... N P .. .................................................................................................................... . . Animal kennels . .......... N t................................ N ....................................... P/C ~......... -...... .................: :.............p ............................................................................................................................ .... A artments within a A A/C C commercial buildin ........... g ..................................................... ..... Assembl li ht N N A manufacturin warehouse _ g_~ ................................................................................. _ ....... Auction houses N N P Auto mechanical /body N N C repair Auto detailin ..........................................................................g........................................_................................................. N ......._.................................. N ........................................ C ..........................................; Auto or boat sales N N C Auto stereo installation N N P service Auto washes N N C Barber._or beauty shops........ -_P/C P/C ~ P/C ....Bicycle_stores ......................................................................................_ . _N P/C P/C .....Bi.cycle..._repair sho.Ps ........................................... ~ ..._..._P/C........... . P/C P/C Bowlin alle s ..........................................g........................Y............................................................................................_ N ..........................: N ._..................................... P ......................................~ ...._Carpet..._or....paint stores .............................................._ . N P/C P/C...... Cemeteries N N C .......; Convenience store N P P Dance or physical culture P P P ;studios ... Da care facilities .....................y......................................................_..........................................................................._............~ C .......................................: P ...._................_............. , P _............................__......; Drug stores without drive-up N P/C P/C ..._facilit.Y ..................................................................................... _. ----. _..... Drug stores_ with drive-up N N C window Emer enc shelter ...................................9.....................y......................................................................................................... N ._ .........................__.._. N ..................._..............._, C ............................_..._......: ...._Enclosed...stora9e ..........................................................~ . A A A......... ...._Fences,..._walls..._and..._hed9eS ......................~ ...........__A................> . _. _A _ .................a A ..._........._........................_ Financial institutions without N N P :drive-up service Financial institutions with N N C ;drive-up service ; . Firearms related uses N N C Fortune tellin N N P Funeral homes, mortuaries :................. . N N C Furniture or appliance stores N P/C P/C Governmental buildings ........... . _.......... P ..... ................, P .._.__.. ._..... P _ ... Groce stores :......................................rY............................................................................................................ . IV ......................:. P/C ........................................: P/C ..........................................; q3 Land Use S-O C-1 C-2 Hospital or 24-hour urgent P/C P/C P/C care Hotel or motel (6 or more N N C :.....units) Junk and Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ N . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : N . . . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . . . . , N . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . : . . . . . Libraries ublic ..................................................... ~..... P.................. ~...................................................................................... P .........................................; P ........................................., P ..........................................: Li uor store munici al ...............9..............................................._~..........................................P.......................................... N ......... ..................... ................N................. .............._P................. .....N.ursin..g..._home ..............................................:..........................................~ . P P......... N........ Office, single-tenant - P/C P/C P/C professional, executive or business Office, multi-tenant - P/C P/C ~ P/C professional, executive, or business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . .. . . . . .. . . . . .. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Outdoor merchandising or N N N 'storage (except as allowed by Section 1135 of the City Code ...................................).................................................................................................................................r. .............._............_.... ................................. ..................................... ....Parkin.J .............................................................................................................................. ..............A................ ..........._A................ ................ A................; Pawn shops & second hand N N C goods dealers licensed under Section 1186 or 1187 of the._C_ty...Code ............................................................................... ..._.... _ ; _._.. _. . ...._Public..._utility,...._minor .........................................._._................ _._.A A A ...._Public....utility,...._major ................................................................ ..........._C................. . C C Reli sous institutions ........................9......................................................................................... _................................................~. N ......_................................: N ..........................._........._. P .................._.._.._............ Restaurant, take-out only N C P Class IV ....................................... _. ...... ... ... .. ...._......... ..............._ ....._..... ................ ................ ...._....._. ~ ; Restaurant fast food N N C convenience food (Class III) or any restaurant with drive- ; up service Restaurant, traditional or N C C ,cafeteria (Class II) Restaurant, full service N N C ...~ C l a s s..._~..) ................................................................................._.................................. Retail, general (single or N P/C P/C multi-tenant.) ....................................... .. _ ...... ....... _ ....... --- -....... _..... Schools ublic or rivate N N P Service station N N C Service station /convenience N N C store Service or non-auto repair P/C P/C P/C shop ti~ Land Use S-O C-1 C-2 ....Tattoo._sh.ops ............................:............................................... N .....e ........................................., N ......................................... ~ ...... C ........ 4........ .... ..... Taxi or limousine service N N P Theater, movie or live N N C ;entertainment .. Veterina clinic N N P Section 6 Subsection 512.09 of the Richfield City Code is amended to read as follows: 512.09. Permitted, Conditional, Accessory and Prohibited Uses in Mixed-Use Districts. The following table summarizes which land uses are classified as permitted, accessory, conditional or prohibited in the Mixed-Use Districts. Refer to Section 537 for complete regulations. P: Permitted A: Accessory C: Conditional N: Null or not Permitted Land Use MU- MU- MU-R N C Residential ..._Townhome_development ..........................._.. ..............._P N N........_......_ Multi-family dwellings (min. 3 P P P :units) (but see 537.07 Subd. 2a)_ Live-work units P P N ;Assisted living facilities, i P P N ;.....nursing rest homes _........ _.._......_ Other . . .. ............... ; .._....... .........._.._ ......... .......... ._ , ..........__.._ ............... . .. . .....Adult _businesses ....................................... N P P Animal kennels C ........._ _.............._ C ................ ..... _ C .._ ..............._ .._........_. ...-Assemb.Iy ..&..manufacturing ................ ..... N A A accessory and subordinate to retail use Auto mechanical /body N C C i...-repair _ ....Auto...detailin9 .................................................._.........................._. _. _ _ N-. __~ - C-- C Auto rental facilities as an N A A accesso to rima office :...................................................ry.................P..........................ry...................................................... .......................................... ...................................... ................................................... y,5 Land Use ~ MU- MU- MU-R N_ C or hotel use Auto sales .........................................................a. : N ........................................ N ;.......................................... ~ C ;.............................................; ........................................................................................ ....................... Clinics ~ A P P Convenience store P P P ..... ...._Da.Y...care...facilities ........................................................: . P ......................................... P :.......................................... , P r................................................, Drive-up window or teller N C C :service F ............................................................................................................................................................................~. ........._..............................: .......................................... ,..................................... Firearms related uses N N C Funeral homes, mortuaries N P ~ N Governmental buildin s .. .g ....................................... A ..... P A Health or athletic clubs, N P P s as o a studios ...........P .............-~.....Y........9....................................~............................................................................._. ..................................:...._ ........................................_ ~.............................................._ Hotel or motel (6 or more N P P units) Hos itals ...........................P........................................................................................................................................ ;.. N ........................................; N ......................................... P ~................................................. Libraries ublic ..................................................... ~.....1~.........:...............................................................................................;.. P ........................................ P .......................................... N ,................................................ :Offices A P P Parking ,...... .. _ ........................................................ ............... ............_.. ............. .............._ ............_ ................ P o I i ce sub-station P P P _; Public utilities A A A Recreational facilities, non- P P P .. co.mmercia.~_,.....princi~al use ... ...... _...... Religious institutions _ __ P P A Restaurant, take-out only P P P Class IV i...._( .............................................. ~........._......................................................................................................;.. ........._................._........... .............._..__..__..._..... ............._......._................_.... Restaurant, fast food / N C C .convenience food (Class III) Restaurant, traditional or P P P .cafeteria (Class II) _ ._ __ : Restaurant, full service N C P Class I Retail, neighborhood P P P :services _.._..........._....._...._... ._ ._.._..__.. ._......__ _..._-- _.__ ........_....._.. .....__..__ , ~. Retail, eneral services ............................................9......................................................................._..............................................._.. C ................................_.._~. P ...._.._......__..._._........., P ............._...----......_...._.. .Retail, regional services_ N C P ..._Schools,.....public._or...p_rivate....._......_...---~ -----P ..............-~ ---- P - - ~ --- C- -- Service station N P P : Service station /convenience N P P ;store Tattoo shops N ~ P Theaters, movie or live N N P entertainment Transit facilities A A A ~'-~ Section X .Section 525.11 of the Richfield City Code is amended to read as follows: 525.11. Dimensional and parkins regulations for multi-family structures excluding cluster home developments). Subdivision 1. The standards set out in this subsection apply in the MR-2 District. Minimum 15,000 sq. ft. lot size Win} fe~area ' , mir~irv~~ .w. In+ .+ r i-l..iellir~n ~ ~r~i+ h~ ~+ +he +.~.+.~1 r~ r~4~er ref c.~ ~~.h 0 0 e Minimum 75 feet - lot width Minimum a) Efficiency - 400 square feet per unit. floor area b) One-bedroom - 550 square feet per unit. c) Two-bedroom - 750 square feet per unit. d) More than two bedrooms -add 150 square feet per bedroom to that re uired for a two bedroom dwellin unit. Maximum 35 feet building hei ht Maximum 30 lot coverage (principal structure Outdoor a) Two or fewer bedrooms: open space 325 square feet minimum per dwelling unit. requirements b) Three or more bedrooms: 425 square feet minimum per dwelling unit. c) Balconies and porches with at least 70 square feet and seven feet in width which are directly accessible by individual dwelling units may be counted as contributing 175 square feet to the outdoor open s ace re uirements listed above. Minimum a) Front: 30 feet. Setbacks b) Side i) Interior: the height of building or 20 feet, whichever is greater. ii) Street: 30 feet c) Rear: the height of building or 25 feet, whichever is greater ~-1 Section X Subsection 527.11 of the Richfield City Code is amended to read as follows: 527.11. Dimensional and parking regulations for multiple-family structures. Subdivision 1. The standards set out in this subsection apply in the MR-3 District. Minimum 60,000 sq. ft. lot size ~A+p+ te~area , ~}F1;S- Minimum 150 feet lot width Minimum a) Efficiency - 400 square feet per unit. floor area b) One-bedroom - 550 square feet per unit. c) Two-bedroom - 750 square feet per unit. d) More than two bedrooms -add 150 square feet per bedroom to that required for a two bedroom dwelling unit. Maximum 50 feet building hei ht Maximum 30 lot coverage (principal structure Outdoor a) Two or fewer bedrooms: open space 300 square feet minimum per dwelling unit. requirement b) Three or more bedrooms: s 400 square feet minimum per dwelling unit. c) Balconies and porches with at least 70 square feet and seven feet in width which are directly accessible by individual dwelling units may be counted as contributing 150 square feet to the outdoor open space requirements listed above. Minimum a) Front: 40 feet. setbacks b) Side i) Interior: the height of building or 30 feet, whichever is greater. ii Street: 40 feet ti~ c) Rear: The height of building or 35 feet, whichever is greater Section X Subsection 532.11 of the Richfield City Code is amended to read as follows: 532.11. Dimensional requirements. Subdivision 1. The following dimensional requirements apply to the C-1 district. All dimensions are in feet unless otherwise indicated. Minimum lot width . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : Interior lot: 60 Corner lot: 75 . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minimum....lot_area ............................................... . _.............................................................._8,000_square feet . .. Maximum impervious 80 percent .surface coverage Setbacks -building :Principal building Accessory building ..._Front _(see_also _Subd.._~) ............ ._..........................................._30............................ ........................ 30................................. Adiacent to arterial See Subdivision 2 roads .Rear (see also Subd. 4) Adjacent to R, R-1 or X510 8 MR-1 District .. ; Adjacent to non-R, R-1 5 5 or MR-1 District i Street /corner side (but 20 20 see Subd. 3 & 4 Interior side (see also Subd. 4) Adjacent to R, R-1 or X510 a-98 MR-1 District ..._ . ........... ........._._..._ .;............................................. ._....................._..._........_... ---..._....._....---......_ 1 R_ .............Adjacent..to...non-R 5 5 or MR-1 District . . .............. r .;......._......_...__.....---........_...._ _.__... ..................................-..._....-.-........... .. ......................................... . Maximum building height 30 15 Story limitations 2 stories 1 story Setbacks -parking (measured from the property line c~,~i Section X Subsection 532.11, Subdivision 2 of the Richfield City Code is amended to read as follows: Subd. 2. Front setback reductions and maximums. a) The front setback requirement for a principal building on a lot may be reduced to no less than the average front setback of the existing principal building(s) abutting such lot, to a minimum of 25 feet, except when adjacent to asingle-family house. b) The front setback requirement for a principal building on a lot located along an arterial road may be reduced to five (5) feet when a customer entrance is provided along that wall of the building,_ c) The maximum front setback for a principal building on a lot located along an arterial road is 40 feet or the average front setback of the existinq_principal buildings abutting such lot, whichever is greater. In no case shall the front setback for a principal building exceed 60 feet. Section x Subsection 534.07 of the Richfield City Code is amended by adding new Subdivision 24 to read as follows: Subd. 24. Accessory outdoor animal relief area to animal kennel, provided the following conditions are met: a) The outdoor relief area shall not be located in the front yard; b) The outdoor relief must meet setback requirements; c) The outdoor relief area shall be screened from view of neighboring properties as approved by the CityL d) The outdoor relief area shall be for the use of dogs only; e) No dogs shall remain unattended in the outdoor relief area; f) The outdoor relief area shall not be used as an outdoor kennel, animal run, animal play area or any other use not specifically identified in the conditional use permit; g) The outdoor relief area shall be maintained in a clean and sanitary condition at all times; h) Solid waste material shall be removed a minimum of once per day and disposed of in a sanitary manner; and ~-~~ i) If required by the Public Works Department, a filtration bed shall be constructed to ensure that liquid waste will not enter into the ground or the City's storm water system. Section X Subsection 534.11 of the Richfield City Code is amended to read as follows: 534.11. Dimensional requirements. Subdivision 1. The following dimensional requirements apply to the C-2 District. All dimensions are in feet unless otherwise indicated. ....-Minimu.m...lot width ................................... ...........................lnterio.r...lot:_.._.7.5.................;..................Corner...lot:.......90.................; Minimum lot area ................................................. ......:............................................. 9 000 s uare feet .. ~..........................~1 . Maximum impervious 85 percent ?,,,,surface coverage Setbacks -building :Principal building Accessory building _Front....(see_also Subd. 2) 35 35 .......................................... Adiacent to arterial See Subdivision 2 roads :.....Rear (see also Subd. 4) _.............. ....................................... ,..... Adjacent to R, R-1 or X915 8 MR-1 District ......................................... ........... .................................................................................... ................................................. .................................... s.. _.................................................................................................. . . Adjacent to non-R, R-1 5 5 or MR-1 District Street /corner side (but 25 25 :....see Subd. 3) _......_.......... ............................................... Interior side (see also Subd. 4 .. .. .. Adjacent to R, R-1 or X915 ~ X98 MR-1 District Adjacent to non-R, R-1 0 0 or MR-1 District Maximum building height 40 15 (but see Subd. 5) Story_limitations ....................................................... ~. 3 stories _. _._..............._.._~...._story..._............................... Section X Subsection 534.11, Subdivision 2 of the Richfield City Code is amended to read as follows: Subd. 2. Front setback reductions and maximums. a) The front setback requirement for a principal building on a lot may be reduced to no less than the average front setback of the existing principal building(s) abutting such lot, to a minimum of 30 feet, except when adjacent to asingle-family house. ~~~ 1 b) The front setback requirement for a principal building on a lot located along an arterial road may be reduced to five (5) feet when a customer entrance is provided along that wall of the building. c) The maximum front setback for a principal building on a lot located along an arterial road is 40 feet or the average front setback of the existingprincipal building(s) abutting such lot, whichever is greater. In no case shall the front setback for a principal building exceed 60 feet. Section X Subsection 537.03, Subdivision 1 of the Richfield City Code is amended to read as follows. 537.03. Permitted Uses. Subdivision 1. The following table establishes permitted, conditionally permitted and accessory uses for the Mixed Use Districts. Table 1. Uses of the Mixed-Use District The following abbreviations are used within the use table: P= permitted use A= accessory use C= conditionally permitted N= not permitted Use MU-R MU-C MU-N COMMERCIAL Re Tonal retail services P C N General retail services P P C Nei hborhood retail services P P P Restaurant Class I servin alcohol P C N Restaurant Class II traditional/cafeteria P P P Restaurant Class III (fast food/convenience C C N Restaurant Class IV take out onl P P P Service Station /convenience store P P N Convenience store P P P Offices and clinics P P A Hotel/motel defined as 6 or more rooms P P N Mortuaries and funeral cha els N P N Health or athletic clubs, s as, o a studios P P N Theaters, movie or live entertainment P N N Auto sales or lease -new vehicles C N N Auto mechanical or bod re air sho s C C N Auto detailin C C N Auto rental facilities accessory to a primary office or hotel use A A N Assembly and manufacturing accessory and subordinate to a retail use A A N Drive-u window or teller service C C N ~~I~ Use MU-R MU-C MU-N Adult business establishments as defined and regulated under Subsection 1196 of the Cit Code P P N Tattoo sho s P P N Firearms related uses C N N Licensed da care facilities P P P Animal kennels C C C RESIDENTIAL Dwellin ,townhouse N N P Dwelling, multi-family (min. 3 units) P P P (but see 537.07, Subd. 2a Live -work units N P P Assisted living facilities, nursing, rest homes N P P I NSTI TUTIONAL/PUBLI C Places of worshi A P P Government offices A P A Police sub-station P P P Schools C P P Libra N P P Parks P P P Hos itals P N N Transit facilities A A A Public utilit A A A Section X Subsection 537.05 of the Richfield City Code is amended by adding new Subdivision 11 to read as follows: Subd. 11. Animal kennels. a) MU-N: Animal kennels shall be permitted in the MU-N District provided the following conditions are met: That full soundproofing is installed on all interior walls (including ceiling) and that the area requirements of Subsection 537.07, Subd. 2 are met. b) MU-C: Animal kennels shall be permitted in the MU-C District provided the following conditions are met: That if located in amulti-tenant building, soundproofing is installed on all walls (including ceiling) that are adjacent to another tenant or residential common area. ~-~3 c) MU-R: Animal kennels shall be permitted in the MU-R District provided the following conditions are met: That if located in amulti-tenant building, soundproofing is installed on all walls (including ceiling that are adjacent to another tenant or residential common area. d) Outdoor relief areas in MU Districts: Outdoor relief areas shall be permitted in the MU Districts provided that the conditions listed in 534.07, Subd. 24 are met. Section X Subsection 544.13, Subdivision 5 of the Richfield City Code is amended to read as follows: Subd. 5. Parking Lot Setbacks. Unless otherwise noted parking lots shall be set back in accordance with the following: a) Parking lots must be set back eight (8) feet from the right-of- way. b) Parking lots must be set back five (5) feet from adjacent commercial, multi-family residential and mixed use property. s3 Parking lots must be set back 15 feet from adjacent singe- family and two-familyresidential property with appropriate screening as required by Subsection 544.03 Subd. 5 for residential sites or Subd. 6 for commercial. Section X This Ordinance is effective in accordance with Section 3.09 of the Richfield City Charter. Passed by the City Council of the City of Richfield, Minnesota this 13th day of September, 201.1. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk j-!'1 RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF AN ORDINANCE AMENDING SUBSECTIONS 512.03; 512.07; 512.09; 525.11, SUBDIVISION 1; 527.11, SUBDIVISION 1; 532.11, SUBDIVISIONS 1 AND 2; 534.11, SUBDIVISIONS 1 AND 2; 537.03, SUBDIVISION 1; 544.13, SUBDIVISION 5 AND BY ADDING NEW SUBSECTION 534.07, SUBDIVISION 24 AND SUBSECTION 537.05, SUBDIVISION 11 RELATED TO HORTICULTURE, ANIMAL KENNELS, MINIMUM LOT AREAS, SETBACKS AND TATTOO SHOPS ' WHEREAS, the City has adopted the above referenced amendment of the Richfield City Code; and WHEREAS, the verbatim text of the amendment is cumbersome, and the expense of publication of the complete text is not justified. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield that the following summary is hereby approved for official publication: SUMMARY PUBLICATION BILL NO. AN ORDINANCE AMENDING SUBSECTIONS 512.03; 512.07; 512.09; 525.11, SUBDIVISION 1; 527.11, SUBDIVISION 1; 532.11, SUBDIVISIONS 1 AND 2; 534.11, SUBDIVISIONS 1 AND 2; 537.03, SUBDIVISION 1; 544.13, SUBDIVISION 5 AND BY ADDING NEW SUBSECTION 534.07, SUBDIVISION 24 AND SUBSECTION 537.05, SUBDIVISION 11 RELATED TO HORTICULTURE, ANIMAL KENNELS, MINIMUM LOT AREAS, SETBACKS AND TATTOO SHOPS This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. This ordinance makes the following changes to the City Code: allows community gardens as an accessory to an established institutional use (e.g. school, church); expands the districts in which animal kennels are permitted with conditions and allows outdoor relief areas provided that certain conditions are met; allows tattoo establishments in the mixed use -community and mixed use -regional districts; removes density prescriptions from the multi-family residential districts, as this is prescribed by the Comprehensive Plan; reduces commercial building setbacks adjacent to single- and two-family dwellings to equal that of the commercial parking lot setback of 15 feet; allows for reduced front setbacks for commercial buildings along arterial roads so long as a public entrance is provided; and establishes a maximum front setback of 60 feet for commercial buildings along arterial roads. Copies of the ordinance are available for public inspection in the City Clerk's office during normal business hours or upon request by calling the Department of Community Development at (612) 861-9760. ~~~~ Adopted by the City Council of the City of Richfield, Minnesota this 13th day of September, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk AlibNllA Jt'.1:11VN: AGENDA ITEM # REPORT # ~i STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, ZO11 YKVYUJr;ll ORDINANCE 10 188 REPORT PREPARED BY: KAREN BARYON, ASST COMMUNITY DEVELOPMENT DIRECTOR N,q,~c, Tiir.E DEPARTMENT DIRECTOR REVIEW: Sn;,vAivkc REVIEWED BY CITY MANAGER: O.I~ ITEM FOR COUNCIL CONSIDERATION: Consideration of proposed sale of land to Wellington Management, Inc. I. RECOMMENDED ACTION: By motion: • Accept the purchase agreement or extend a counterproposal to the purchase agreement; and • Approve second reading of an ordinance providing for the sale of certain real property of the City to Wellington Management, Inc. III. BACKGROUND At the regular meeting of the City Council on August 9, 2011, the City Council considered and approved a planned unit development plan for the former Kmart site, to be redeveloped by Wellington Management, Inc. (Wellington). That development includes land legally described as Lot 2, Block 1, Heyman Addition (Lot 2). Wellington provided the City with a letter of intent to acquire Lot 2, and the City Council approved the letter of intent as modified at their August 17, 2011 meeting and conducted a first reading of an ordinance to convey the property to Wellington. Wellington has provided the City and Housing and Redevelopment Authority (HRA) with a purchase agreement to acquire Lot 2, which is attached. 09132011 Second Reading Sale of Property to Wellington Mgmnt Staff and Legal Counsel have had very little time to review the attached Purchase Agreement before its inclusion in this City Council packet. As a result, there may be revisions that will be identified in a more thorough review of the document. If that is the case, staff will provide a revised Purchase Agreement to the City Council at the Council meeting and will work closely with representatives of Wellington to ensure that such revisions meet their needs. III. BASIS OF RECOMMENDATION A. POLICY • The City of Richfield actively encourages and supports the improvement and redevelopment of functionally obsolete or economically disadvantaged properties, in order to improve the City's tax base and provide jobs. B. CRITICAL TIMING ISSUES • Wellington proposes to close on the Kmart site in September. • Wellington needs to obtain control of all properties to be included in its development plan. • Per the letter of intent, the City must use commercially reasonable efforts to sign a mutually acceptable purchase agreement and/or enter into a development agreement with Wellington by September 23, 2011. C. FINANCIAL • The approved letter of intent specifies a purchase price of $50,000. • The approved letter of intent allows for a refund of $49,999.00 of the purchase price should construction commence by September 1, 2014. D. LEGAL • The City Attorney will be at the meeting to answer questions. • At the time of distribution of this staff report, the purchase agreement has not been reviewed by legal counsel; however they will have reviewed it prior to the City Council-meeting. E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • Approve a second reading of the ordinance with modifications • Do not conduct second reading of ordinance V. ATTACHMENTS • Ordinance Purchase Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Representatives of Wellington Management, Inc. e©-~ BILL NO. AN ORDINANCE PROVIDING FOR THE SALE OF CERTAIN REAL PROPERTY OF THE CITY THE CITY OF RICHFIELD DOES ORDAIN: Section 1. The following property of the City is hereby authorized to be sold to Wellington Management, Inc. or such other entity as Wellington Management, Inc. may designate in writing. Lot 2, Block 1, HEYMAN ADDITION, Hennepin County, Minnesota Sec. 2. The Mayor and City Manager are authorized and directed to sign all documents necessary to effect the sale contemplated by this ordinance, in accordance with the terms and conditions of the purchase agreement as approved by the City Council. Sec. 3. This ordinance will be effective in accordance with Section 3.09 of the City Charter. Adopted this day of September, 2011. By: Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk ~~-a REAL ESTATE PURCHASE AGREEMENT THIS REAL ESTATE PURCHASE AGREEMENT ("Agreement") is made as of September , 2011 (the "Effective Date"), by and between the City of Richfield, Minnesota, a municipal corporation and political subdivision of the State of Minnesota ("Seller"), and Lyndale Station LLC, a Minnesota limited liability company ("Buyer"). In consideration of the terms and conditions of this Agreement, and the receipt of $1.00 in cash paid to Seller, Seller and Buyer agree as follows: 1. Sale of Property. Seller agrees to sell to Buyer fee simple interest in that certain parcel of real estate located in the City of Richfield, Hennepin County, Minnesota, legally described as Lots 2 and 3, Block 1, Heyman Addition, and all rights, privileges, servitudes, easements and appurtenances thereunto belonging or appertaining (the "Property"). Buyer hereby agrees to buy the Property from Seller, upon and subject to the conditions and limitations herein contained. 2. Purchase Price. Buyer shall pay to Seller, as consideration for the purchase of the Property, the sum of Fifty Thousand and 00/100 Dollars ($50,000.00) ("Purchase Price"), as the same may be adjusted as discussed below. Buyer shall pay to Seller at Closing (defined below) the Purchase Price by wire transfer, other immediately available funds, letter of credit or bond, to be determined in Buyer's reasonable discretion. Notwithstanding anything to the contrary contained in this Agreement, in the event Buyer obtains a building permit for the construction of the Retail Building (defined in Section 20) on or before September 1, 2014, Seller shall refund or release to Buyer a portion of the Purchase Price equal to Forty-Nine Thousand Nine Hundred Ninety-Nine and 00/100 Dollars ($49,999.00). Such refund shall be paid to Buyer within fifteen (15) days after Buyer's written request, or such letter of credit or bond shall be released within fifteen (15) days after Buyer's written request for same. 3. Title and Examination. Buyer's obligation to consummate the transaction contemplated by this Agreement shall be subject to the satisfaction or waiver of each of the following conditions ("Examination Conditions") on or before 5:00 p.m. on the date that is one hundred twenty (120) days after the later to occur o£ (i) the Effective Date, or (ii) receipt by Buyer of all of the Due Diligence Materials described in Section 3(b) below (the "Contingency Date"). Buyer shall have the unilateral right to waive any of the Examination Conditions, in whole or in part, by written notice to Seller: (a) Title/Survey. Seller shall, within ten (10) days after the Effective Date, deliver to Buyer all of Seller's existing surveys, title policies, commitments, abstracts and exception documents in Seller's possession or control (if any). Seller shall provide to Buyer, within ten (10) days after the Effective Date, at Seller's expense, a current title commitment ("Commitment") for the Property (with legible copies of all underlying title documents listed in the Commitment) fora 2006 ALTA form owner's title policy (the "Title Insurance Policy") in the amount of the Purchase Price issued by the Title Company (defined below) showing fee simple title in Seller, subject only to such encumbrances as Buyer shall specifically agree to in writing (collectively, the "Permitted Encumbrances"). Buyer may obtain, at Buyer's expense, an updated ALTA as-built survey ("Survey") for the Property. If the Survey discloses survey defects other than the Permitted Encumbrances or if the Commitment shows exceptions other than the Permitted Encumbrances (collectively, the "Unpermitted Encumbrances"), then Buyer shall notify Seller, in writing, on or before the Contingency Date, specifying the Unpermitted Encumbrances (the "Objections"). The 8139644v3 %~~~ "Title Company" shall be Commercial Partners Title, LLC, 200 South Sixth Street, Suite 1300, Minneapolis, MN 55402. Seller shall use commercially reasonable efforts to correct or cure Buyer's Objections. Seller shall have thirty (30) days ("Cure Period") after receipt of the Objections to cure such Objections. If Seller fails to cure any such Objections to the reasonable satisfaction of Buyer within the time provided above and to give Buyer written notice thereof, Buyer shall have the option to either: (i) terminate this Agreement by giving written notice to Seller within ten (10) business days following the expiration of the Cure Period; or (ii) waive the Objections and proceed with Closing. (b) Due Diligence Materials; Tests. Seller shall, within ten (10) days after the execution of this Agreement, deliver to Buyer copies of the following due diligence materials to the extent in Seller's possession or control, for Buyer's review and analysis: (i) all environmental reports and test results affecting the Property; (ii) soil reports affecting the Property; (iii) any information regarding septic tanks or wells affecting the Property; (iv) all blueprints and engineering plans for the Property; and (v) any other documents that materially affect the ownership or management of the Property or any other documents or records that Buyer may reasonably request (collectively, the "Due Diligence Materials"). Seller shall allow Buyer and Buyer's officers, employees, agents, attorneys, architects and engineers access to the Property without charge and at all reasonable times, for the purpose of making such inspections, tests and verifications (collectively, "Tests") as they shall deem reasonably necessary. On or before the Contingency Date, Buyer shall be satisfied, in its sole and absolute discretion, with the results of the Tests, the Due Diligence Materials and the Property, and shall have the unqualified right to terminate this Agreement on or before the Contingency Date. Seller shall cooperate with Buyer to resolve, at Seller's expense, any title, utility or environmental issues discovered by Buyer on or before the Contingency Date. Buyer may, in its sole discretion and for any reason, terminate this Agreement at any time on or before the Contingency Date. Buyer shall, on or before the Contingency Date, do one of the following: (i) notify Seller in writing that the Examination Conditions have been satisfied or waived, in Buyer's sole and absolute discretion; or (ii) elect not to notify Seller in writing that the Examination Conditions have been satisfied or waived by Buyer, in Buyer's sole and absolute discretion. If Buyer gives notice as provided in (i) above, then the Closing shall occur as contemplated by this Agreement (subject to satisfaction of the other conditions precedent in this Agreement). If Buyer does not provide the notice described in (i) above, then this Agreement shall terminate. Upon such termination, neither party will have any further rights or obligations regarding this Agreement or the Property except for those indemnities and obligations that expressly survive Closing or termination of this Agreement. Notwithstanding anything to the contrary contained in this Agreement, Seller hereby agrees that Buyer shall have the unqualified right to terminate this Agreement at anytime before and including the Contingency Date. 4. Covenants by Seller. Seller covenants and agrees that from the Effective Date until the Closing Date, Seller shall conduct its business involving the Property as follows, and during such period will: (a) Refrain from conveying the Property or any interest therein, or creating on the Property any easements or other interests affecting the Property. 8139644v3 2 ro ~~l (b) Refrain from entering into or amending any leases, contracts or other agreements affecting the Property without the prior written consent of Buyer, which consent shall not be unreasonably withheld, delayed or conditioned. (c) Operate, maintain, repair and insure the Property in a manner consistent with the existing operation, maintenance, repair and insurance of the Property. In addition, Seller shall, on or before the Contingency Date, conduct any and all necessary public hearings and make any and all necessary findings for purposes of authorizing Seller's conveyance of the Property to Buyer. Seller shall provide Buyer with written notice of, and written status updates regarding, such public hearings and findings upon Buyer's reasonable request. 5. Representations by Seller. Seller hereby represents and warrants to Buyer as follows: (a) Seller has the requisite power and authority to enter into and perform this Agreement and the Seller's Closing Documents (as herein defined); such documents have been duly authorized by all necessary action on the part of Seller and have been or will be duly executed and delivered; such execution, delivery and performance by Seller of such documents will not conflict with or result in a violation of any judgment, order, or decree of any court or arbiter to which Seller is a party; and such documents are valid and binding obligations of Seller, and are enforceable against Seller in accordance with their terms. (b) Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. There is no action, litigation, investigation, condemnation or proceeding of any kind pending or threatened against the Property. There are no leases or other occupancy agreements affecting the Property. (c) The Property and its current use are in compliance with all federal, state and municipal laws, ordinances, rules and regulations. (d) Seller has disclosed and made available to Buyer all reports and investigations commissioned by, in Seller's possession or otherwise readily available to Seller relating to Hazardous Substances and the Property. The term "Hazardous Substance," in the singular and plural form, means any "hazardous substance" as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time (42 U.S.C. §§ 9601 et. seq.), any substances or materials that are classified or considered to be hazardous, contaminants, toxic or pollutants, or otherwise regulated under the laws of the State of Minnesota, crude oil and any fraction thereof, asbestos in any form or condition, polychlorinated biphenyls in any form or condition, and any other substance that may be harmful to human health including, without limitation, mold and radon. Seller is not aware of any environmental condition, situation or incident on, at, or concerning the Property that could give rise to an action or liability under any law, rule, ordinance, or common law theory. There are no past or present investigations, administrative proceedings, litigation, regulatory hearings or other actions proposed, threatened or pending, alleging non-compliance with or violation of any federal, state or local laws, ordinances, rules or regulations dealing with environmental, health or safety matters ("Environmental Laws") or relating to any required environmental permits, and neither Seller nor any third party has violated any Environmental Laws with respect to the Property. There are no underground or above ground 8139644v3 ~D - ~ storage tanks on the Property and no such tanks have been removed during Seller's ownership of the Property. (e) There are no service, maintenance or other contracts or equipment leases relating to the Property that will remain in place post-Closing. (f) The Due Diligence Materials made available and to be made available to Buyer by Seller shall be true, accurate, and complete in all material respects and shall not-omit any material information. (g) Seller holds good, marketable fee simple title to the Property. Seller has not entered into any other purchase agreements, options, rights of first offer, rights of first refusal or related agreements with any other party giving any other party the right to purchase the Property or any portion thereof, and no such rights exist in any other party. (h) There are no unsatisfied judgments, state or federal tax liens or encroachments or boundary line questions affecting the Property. (i) There is no pending or threatened condemnation proceeding or similar proceeding or assessment affecting any part of the Property. (j) There are no parties with any interest in the Property, and no other signatures are required to make this Agreement fully enforceable by Buyer, other than Seller. The representations and warranties of Seller contained in this Agreement shall survive Closing. Seller shall indemnify, defend and hold harmless Buyer and Buyer's lenders, principals, officers, employees, directors and members from and against any and all loss, cost, liability, damage or expense suffered or incurred by any of such indemnified parties as a result of the breach by Seller of any of the representations and warranties set forth in this Agreement. The indemnification provisions in this Agreement shall survive Closing or any termination of this Agreement and shall not be merged therein. 6. Representations by Buyer. Buyer represents to Seller that Buyer is a limited liability company duly organized and validly existing and in good standing under the laws of the State of Minnesota; Buyer has the requisite power and authority to enter into this Agreement and the Buyer's Closing Documents (defined below); such documents have been duly authorized by all necessary action on the part of Buyer and have been or will be duly executed and delivered; and such documents are enforceable against Buyer in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, creditor's rights and other similar laws. 7. Closing. (a) Closing Date. The closing of the purchase and sale contemplated by this Agreement (the "Closing") shall occur on a date to be determined by Buyer, provided such date is no sooner than the closing date of Buyer's purchase of the Former K-Mart Property (defined below) and no later than June 1, 2012 (the "Closing Date"). The Closing shall be held at the office of the Title Company, or at such other place as the parties may mutually agree. Seller agrees to deliver possession of the Property to Buyer on the Closing Date, free and clear of the rights of any tenants, licensees or occupants. Notwithstanding anything to the contrary, Buyer may simultaneously close on 8139644v3 4 ~p -(o the purchase of the Property and the Former K-Mart Property in Buyer's sole discretion upon notice to Seller. (b) Buyer's Closing Conditions Precedent. Buyer's obligation to consummate the transaction contemplated by this Agreement shall be subject to the satisfaction or waiver of each of the following conditions ("Buyer's Closing Conditions Precedent"); provided, however that Buyer shall have the unilateral right to waive any Buyer's Closing Conditions Precedent, in whole or in part, by written notice to Seller: (i) On or before the Contingency Date; Seller shall have obtained any and all necessary approvals and findings authorizing Seller's conveyance of the Property to Buyer in accordance with Section 4. (ii) The representations in Section 5 of Seller hereof shall be, in all material respects, true and complete as of the Closing Date. (iii) Seller shall have performed all of the obligations required to be performed by Seller under this Agreement, as and when required by this Agreement. (iv) There shall not have been instituted and be pending any action or proceeding before any court, governmental agency or other regulatory or administrative agency or commission challenging the purchase and sale of the Property or the transactions related thereto. (v) Neither Buyer nor Seller shall have terminated this Agreement as provided herein. (vi) On the Closing Date, title to the Real Property shall be acceptable to Buyer in accordance with the provisions of Section 3(a). (vii) Buyer shall have obtained all necessary governmental and agency approvals and permits, consistent with applicable zoning codes and other governmental limitations and requirements, for Buyer's proposed use of the Property. (vii) Buyer shall have closed on the purchase of the property located adjacent to the Property and legally described as Lot 1, Block 1, Heyman Addition, Hennepin County, Minnesota (the "Former K-Mart Property"). Buyer may simultaneously close on the purchase of the Property and the Former K-Mart Property. In the event Buyer is .unable to purchase the Former K-Mart Property for any reason, Buyer shall not be obligated to purchase the Property and may, without penalty, terminate this Agreement at any time upon written notice to Seller. Seller shall cooperate with Buyer in accomplishing the Buyer's Closing Conditions Precedent contained in this Section 7, including but not limited to Seller providing or obtaining any relevant information, certifications or applications, executing documents, and holding hearings or otherwise participating in any regulatory or governmental processes. In the event that all Buyer's Closing Conditions Precedent have not been satisfied or waived as of the scheduled Closing Date or other 8139644v3 ~D ~~ date specified above, this Agreement may terminate at Buyer's election. In such event, neither party will have any further rights or obligations regarding this Agreement or the Property. 8. Closing Deliveries. (a) Seller's Closing Documents. On the Closing Date, Seller shall execute and/or deliver to Buyer or cause to be executed and/or delivered the following (collectively, the "Seller's Closing Documents"): (i) Deed. A Limited Warranty Deed ("Deed") conveying the Property to Buyer, subject only to the Permitted Encumbrances. The Deed shall contain a temporary restriction regarding Buyer's ability to sell the Property to a third party unless such third party assumes the development obligations related to the Retail Building and the Public Area set forth in Section 20 (the "Restriction"). The form and content of the Restriction shall be subject to Buyer's review and approval, and shall automatically terminate upon completion of the obligations set forth in Section 20. (ii) Certificate Regarding Representations in Section 5. A certificate stating that the representations in Section 5 made by Seller under this Agreement are true and complete in all material respects as of the Closing Date. (iii) FIRPTA Affidavit. Anon-foreign seller affidavit properly containing such information as is required by Section 1445(b)(2) of the Internal Revenue Code and the regulations promulgated thereunder. (iv) Title Documents. Such affidavits of Seller, transfer tax declarations or other documents as may be reasonably required by the Title Company in order to record the Deed and issue the Title Insurance Policy. (v) Miscellaneous. Other documents reasonably required to consummate the transaction this Agreement contemplates. (vi) Seller's Affidavit. An Affidavit of Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving the Property; that there has been no labor or material furnished to the Property for which payment has not been made or for which mechanics' liens could be filed; that there are no unrecorded interests in the Property; and that there are no encroachment or survey issues of which Seller is aware; together with whatever standard owner's affidavit and/or indemnity may be reasonably required by the Title Company to issue the Title Insurance Policy conforming to the requirements of this Agreement. (vii) Well Certificate. If there are wells on the Property, a Well Certificate in the form required by Minn. Stat. § 103I. (viii) Abstract. The abstract of title for the Property if in Seller's possession or control. 8139644v3 6 CD ~~ (ix) Title Policy. The Title Insurance Policy or a marked-up title Commitment, meeting the requirements of this Agreement. (x) Termination of Service Contracts. Evidence that any service contracts for the Property have been terminated and that there are no claims, penalties or liabilities by or owed to such vendors that could adversely affect Buyer or the Property as a result of such terminations. Any service contracts affecting the Property shall be terminated prior to Closing by Seller at Seller's expense. (xi) Return of Purchase Price. An instrument to be prepared by Seller and approved by Buyer obligating Seller to refund or return a portion of the Purchase Price pursuant to Section 2. (b) Buyer's Closing Documents. On the Closing Date, Buyer will execute and/or deliver or cause to be executed and/or delivered to Seller the following (collectively, the "Buyer's Closing Documents"): (i) Purchase Price; Title Documents. The Purchase Price and such affidavits of Buyer, transfer tax declarations or other documents as may be reasonably required by the Title Company in order to record the Deed and issue the Title Insurance Policy. (ii) Agreement Regarding Public Area. An instrument to be prepared by Buyer acknowledging that the Public Area (defined below) will be shared by Buyer and Buyer's tenants, occupants and licensees with the public for certain uses and that Buyer will be responsible for all maintenance and operation costs associated with the Public Area. (iii) Miscellaneous. Other documents reasonably required to consummate the transaction this Agreement contemplates. 9. Adjustment and Prorations. For purposes of calculating prorations, Buyer shall be . deemed to be in title to the Property for the entire day upon which the Closing occurs. All such prorations shall be made on the basis of the actual number of days of the year and month that shall have elapsed as of the Closing Date. Except as otherwise expressly provided in this Agreement, all prorations provided for herein shall be final. (a) Real Estate Taxes and Special Assessments. Real estate taxes and installments of special assessments payable therewith due and payable in the year of Closing shall be prorated on a daily basis as of the Closing Date based upon the most recent tax bills. Real estate taxes and installments of special assessment payable therewith due and payable in the year prior to the year of Closing and all prior years shall be paid by Seller. Seller shall pay on or before the Closing Date all levied, pending and deferred special assessments as of the Closing Date. (b) Title Insurance. Buyer shall pay all title examination fees and Commitment fees of the Title Company. Buyer shall pay the premium for the Title Insurance Policy, with endorsements and extended coverage over the standard exceptions. Buyer shall also pay all costs of any lender's title insurance policy. 8139644v3 l a 'y (c) Survey Costs. Buyer shall pay all costs of the Survey. (d) Closing Fee. Seller and Buyer shall each pay one-half of the closing fees charged by the Title Company. (e) Transfer Tax; Sales Tax. Buyer shall pay all state deed tax owed to the State of Minnesota and any other transfer taxes or sales tax due in connection with the sale of the Property to Buyer. (f) Recording Costs. Buyer shall pay the cost of recording the Deed. 10. Default/Remedies. (a) Seller's Default. In the event of a breach or default by Seller under the terms and conditions of this Agreement, Buyer shall have the right (i) to terminate this Agreement, (ii) to enforce specific performance of this Agreement, provided that any action for specific performance must be commenced within twelve (12) months of the scheduled Closing Date, as the same may have been extended pursuant to the provisions hereof, or (iii) to sue Seller for Buyer's damages and out-of-pocket costs and expenses, including reasonable attorneys' fees, in connection with the Property. (b) Buyer's Default. In the event of a breach or default by Buyer under the terms and conditions of this Agreement, Seller, as its sole and exclusive remedy, shall have the right to terminate this Agreement by giving written notice to Buyer under Minnesota Statutes, Section 559.21. If Buyer fails to cure such default within thirty (30) days after the date of such notice, this Agreement shall terminate and neither party will have any further obligations under this Agreement. 11. Condemnation. If, prior to the Closing Date, eminent domain proceedings are commenced against all or any substantial part of the Property, Seller shall immediately give notice to Buyer of such fact and, at Buyer's option (to be exercised within thirty (30) days after Seller's notice), this Agreement shall terminate. In the event of any such termination, neither party will have any further obligations under this Agreement (other than the surviving indemnity obligations, which shall survive termination). If Buyer fails to elect to terminate this Agreement in the manner provided in this Section 12, then there shall be no reduction in the Purchase Price, and Seller shall assign to Buyer at the Closing all of Seller's right, title and interest in and to any award made or to be made in the condemnation proceedings and all payments made in lieu of condemnation. Prior to the Closing Date, Seller shall not designate counsel, appear in, or otherwise act with respect to the condemnation proceedings without Buyer's prior written consent, which consent shall not be unreasonably withheld or delayed. 12. Broker's Commissions. Seller represents to Buyer that in connection with the transaction contemplated- hereby, no third party broker or finder has been engaged or consulted by Seller or is entitled to compensation or commissions in connection herewith. Seller shall defend, indemnify and hold harmless Buyer from and against any and all claims of brokers, finders or any like third party claiming any right to commissions or compensation by or through acts of Seller in connection herewith. This Section 12 shall survive the expiration or termination of this Agreement or the Closing. 13. Assignment. Buyer may assign its rights under this Agreement to any trust, corporation, partnership, limited liability company or other limited liability entity in which Buyer or Buyer's principals have a continuing ownership interest without Seller's consent. Any assignment shall be subject to the provisions, terms, covenants and conditions of this Agreement and such 8139644v3 g r~,~a assignment and assumption shall be evidenced by a written agreement. Seller may not assign its rights under this Agreement without the prior written consent of Buyer. 14. Notices. Any notice or other communication in connection with this Agreement shall. be in writing and shall be sent by nationally recognized overnight courier guaranteed next business day delivery, by facsimile transmission, by certified mail, return receipt requested, or by personal delivery, properly addressed as follows: If to Seller: City of Richfield 6700 Portland Avenue Richfield, MN 55423 Attn: Debbie Goettel and Steven Devich Facsimile No.: (612) 861-9749 With a copy to: Attn: Facsimile No.: If to Buyer: Lyndale Station LLC 1625 Energy Park Drive, Suite 100 St. Paul, MN 55108 Attn: Tanya Bell Facsimile No.: (612) 292-0072 With a copy to: Leonard, Street and Deinard 150 South Fifth Street, Suite 2300 Minneapolis, MN 55402 Attn: Gina Fox Facsimile No.: (612) 335-1657 All notices shall be deemed given one (1) business day following deposit if delivered to an overnight courier guaranteeing next day delivery, two (2) business days following deposit if sent by certified mail, or on the same day if sent by personal delivery or by facsimile (with proof of transmission). Any party may change its address for the service of notice by giving written notice of such change to the other party, in any manner above specified. 15. Captions; Entire Agreement; Modification. The section headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement, and are not to be considered in interpreting this Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter herein contained, and all prior negotiations, discussions, writings and agreements between the parties with respect to the subject matter herein contained are superseded and of no further force and effect. No covenant, term or condition of this Agreement shall be deemed to have been waived by either party, unless such waiver is in writing signed by the party charged with such waiver. 8139644v3 ~o -II 16. Binding Effect; Controlling Law; Severability. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. The unenforceability or invalidity of any provisions hereof shall not render any other provision herein contained unenforceable or invalid. 17. Time of Essence; Counterparts; Interpretation; Survival. Time is of the essence of this Agreement. Should the date for the giving of any notice, the performance of any act, or the beginning or end of any period provided for herein fall on a Saturday, Sunday or other legal holiday, such date shall be extended to the next succeeding business day which is not a Saturday, Sunday or legal holiday. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. The respective covenants, agreements, indemnifications, warranties and other terms of this Agreement will survive and be in full force and effect after the Closing, and shall not be deemed to have merged into any of the closing documents. 18. No Negotiation. Seller and its employees, agents and representatives will not: (a) directly or indirectly solicit, initiate or encourage any inquiries or proposals from, discuss or negotiate with, provided any non-public information to, or consider the merits of any unsolicited inquiries or proposals from any person or entity (other than Buyer) relating to any transaction involving the sale or purchase of the Property in whole or in part or similar transaction; or (b) respond to solicitations of any persons or entities (other than Buyer) relating to the purchase or sale of the Property in whole or in part. 19. Representation by Counsel. The parties acknowledge that each party to this Agreement has been represented by counsel and such counsel have participated in the negotiation and preparation of this Agreement. This Agreement shall be construed without regard to any presumption or rule requiring that it be construed or constructed against the party who has drafted or caused this Agreement to be drafted. 20. Construction of Improvements. Buyer agrees to construct an approximately 8,500 square .foot retail building (the ".Retail Building"), a sidewalk, a patio, public art, lighting and landscaping improvements on the portion of the Property outlined on Exhibit A attached hereto and made a part hereof (the "Public Area"). 21. Grant Application. Seller shall collaborate and cooperate with Buyer to submit to Hennepin County and/or to the Metropolitan Council a grant application for no less than Three Hundred Fifty Thousand and 00/100 Dollars ($350,000.00) to provide financial assistance to Buyer for the construction of the Retail Building and/or the other improvements Buyer contemplates constructing and completing on the Former K-Mart Property. Such collaboration and cooperation shall include, but not limited to, Seller providing or obtaining any relevant information, certifications or applications, executing documents, and appearing at hearings or otherwise participating in any regulatory or governmental processes, provided that Seller shall not be obligated to incur any out-of- pocket costs in connection therewith. [Signature Page Follows] 8139644v3 10 ~D't~ Signature Page to Real Estate Purchase Agreement IN WITNESS WHEREOF, Seller and Buyer have executed this Agreement as of the day and year first above written. SELLER: BUYER: CITY OF RICHFIELD, MINNESOTA LYNDALE STATION LLC a Minnesota limited liability company By: Name: Debbie Goettel Title: Mayor Bv: Bv: Name: Stephen B. Wellington Its: Chief Manager Name: Steven Devich Title: City Manager 8139644v3 11 ~o -~ 3 EXHIBIT A TO REAL ESTATE PURCHASE AGREEMENT Depiction of the Retail Building and Public Area [7 c, he u~~~i~~te~i~ ;. - ~~_, `" t ~ i L {k. d '<. ~ ~~ a-__ , ~ f j" i `~` ~ = , ~ ;~i~ ~. ; °-- € .. i ; ~_ :; , P__ :) ~ ~~ ' ~.< ` 1.1 . ; ~^ ~ s ,,~ a f 8s~ rwis y __ 1 . t p i W .. ~. .. - 1 ~ ~i" 1 to ~ __ _ ~ ~ 4~,n I 'k'`',. ~ ... ~ ~ .~ _ .... ~~ 'x.71 _~ --~ .. r ~ ~ ~ ~ ;;;,4 __ i _.- fU :; ~ ~ ~I. t ,~~ ~ ~r ~ f I - ,~ ! '. y, ~1 ~ ~ ~4: ~~,.-~ f~ ,~,iss3~ i - i r ~ ~ j ;, F li .~ ~ c ~ _ .t ~ t } r ', ~.. y ,' _ ., !r~ fit °.~_ J r a_ ' _ i t` ,.-c_r t ~.,~'~.. .~ _ ~ t r . ---~ r { a, ,~ ~ ,. ... .i T'T r~ t ~ U - ~ ~-y'tar; _ .:ice r. 8139644v3 A-1 AGENDA SECTION: RESOLUTION AGENDA ITEM # 11 REPORT # 189 rl STAFF REPORT CITY COUNCIL MEETING SEPTEMBER 13, 2011 REPORT PREPARED BY: MELISSA POEHLMAN, CITY PLANNER NAME, T/TLE DEPARTMENT DIRECTOR REVIEW: S/GNAT REVIEWED BY CITY MANAGER: ~ ITEM FOR COUNCIL CONSIDERATION: Consider re-approval of a major site plan amendment at 1600 78th Street East to allow a 9,600 s uare foot addition to the existin buildin . I. RECOMMENDED ACTION: By Motion: Approve the attached resolution constituting approval of a ma'or site Ian amendment at 1600 78th Street East. II. BACKGROUND In the fall of 2009 the owners of the property located at 1600 78th street East were granted approval to expand their operations by constructing a 2-story, approximately 9,600 square foot building addition. The addition consists of warehouse/storage space, a retail showroom and three residential units on the second floor. The residential units are intended for use by out-of-town employees for extended stays, although they could be rented just as any other apartment units. In accordance with Section 547.13, Subdivision 9 of the City Code, building permits must be obtained and construction begin no later than one year following the date of approval or site plan approval shall lapse, unless an extension is granted by the City Council. At the time of the initial approval, the owners believed that construction would begin quickly and an extension was not discussed. That said a new approval of the project is required. The only possible change could be to the exterior finishes of the addition. The owners are still considering color choices. 091311 -ASP 1600 78th St E III. BASIS OF RECOMMENDATION A. POLICY • An addition constituting more than a 25 percent change in floor area requires a major amendment to the existing site plan. Major amendments require a public hearing before the Planning Commission and final approval by the City Council. • In evaluating a site plan, the Planning Commission and City Council shall consider its compliance with the following: a) Consistency with the elements of the Comprehensive Plan and any redevelopment plans established for the area; ^ The Comprehensive Plan designates this parcel as Regional Commercial. The existing business is truly regional in the largest sense -serving customers throughout the United States and abroad. ^ The Zoning Ordinance designates this property as Mixed Use -Regional. The proposed addition embodies exactly the type of redevelopment the City envisioned when rezoning the I-494 Corridor. b) Consistency with the requirements of the Zoning Ordinance; ^ The proposal meets the landscaping, screening, architectural, utility and stormwater requirements of the Code. ^ In instances where a structure contains two or more types of uses, the Zoning Code requires the total off-street parking for each use to be calculated separately unless a joint parking arrangement can be applied. In this case, the Code requires 54 spaces (there are currently 30 parking stalls on the site). ^ An applicant may request a modification of the minimum required number of parking spaces by submitting a study of anticipated demand. The study must be prepared by a professional engineer with expertise in traffic and parking analysis. ^ An independent parking study was conducted by Spack Consulting and supports a reduced requirement based on the peak requirement of each use. The study recommends that 35 parking stalls be provided and that any semi-truck deliveries be scheduled for the morning prior to the time of peak demand. ^ The proposed site plan includes 39 parking spaces. This reduction is supported by staff given the findings of the parking study. The reduced requirement is further supported by the fact that the owners intend to hire only two additional employees. ^ Alighting plan must be submitted and reviewed for compliance prior to the issuance of permits. c) Creation of a design for structures and site features which promote the following: ^ An internal sense of order among the buildings and uses; • The site has a single building. ^ The adequacy of vehicular and pedestrian circulation, including walkways, interior driveway and parking in terms of location and number of access points, general interior circulation, separation of pedestrian and vehicular traffic and arrangement and amount of parking; • A walkway is provided to facilitate pedestrian movement along the south side of the building and to the front door. ^ Energy conservation through the design of structures and the use of landscape materials and site grading; • The owners wish to be models of sustainable environmental business practices. The proposal includes a system to capture stormwater run-off for irrigation and potable water use, rain barrels, photovoltaic panels and more. ^ The minimization of adverse environmental effects on persons using the development and adjacent properties. • The capture of all storm water run-off will eliminate any impact on adjacent properties. B. CRITICAL TIMING ISSUES • 60-DAY RULE: The 60-day clock `started' when a complete application was received on July 26, 2011. A decision is required by September 24, 2011 OR the Council must notify the applicant that it is extending the deadline (up to a maximum of 60 additional days or 120 days total) for issuing a decision. C. FINANCIAL • The required application fee has been paid. D. LEGAL • A public hearing was held before the Planning Commission on August 22, 2011. No members of the public spoke. • Notice of the public hearing was published in the Sun Current Newspaper. • Notice of the public hearing tonight was sent to residents and property .owners within 350 feet of the affected parcel. • Staff received one written comment from the President of the Adler Graduate School at 1550 78th Street East. As mentioned by School representatives in 2009, the School continues to contemplate closure of the access between their parking lot and that of ECOSmarte. The owners of ECOSmarte are aware of this, and access to the property will remain along 78th Street. This issue ultimately remains one for the property owners to work out between themselves. E. ENVIRONMENTAL CONSIDERATIONS • The proposal includes many sustainable design elements and will hopefully serve as a model/demonstration to others. IV. ALTERNATNE RECOMMENDATION(S~ • Recommend approval with additional stipulations or amendments. • Recommend denial of the proposed site plan amendment finding that it does not meet one or more City requirements. V. ATTACHMENTS • Resolution • Proposed plans • Parking study memorandum • Adler Graduate School comment • Area zoning and land use maps VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Larry Couture, Jr., co-owner RESOLUTION NO. ~ ~ ~ ` RESOLUTION GRANTING APPROVAL OF A MAJOR SITE PLAN AMENDMENT FOR 1600 78TH STREET EAST WHEREAS, an application has been filed with the City of Richfield which requests approval of major site plan amendment for the parcel of land located at 1600 78th Street East, legally described as: That part of the East 150.00 feet of the West 480 feet of the South % of the Southeast Quarter of the Southeast Quarter of Section 35, Township 28, Range 24, lying South of the North 180.26 feet thereof,- according to the United States Government Survey thereof, Hennepin County, Minnesota. WHEREAS, the requested site plan has been reviewed by staff and meets City requirements; and WHEREAS, the proposed site plan is consistent with the elements and objectives of the City's development guides, including the Comprehensive Plan and any redevelopment plans established for the area; and WHEREAS, the proposed site plan promotes an internal sense of order among buildings and uses, provides adequate vehicular and pedestrian circulation, promotes energy conservation, and minimizes the any adverse environmental effects.; and WHEREAS, the City has fully considered the request for approval for the site plan; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. That the proposed site plan, including 39 parking spaces and landscaping areas as indicated, is hereby approved. 2. All outdoor parking spaces must be striped in accordance with City standards. 3. All parking spaces must be accessible year round. 4. All landscaping must be continuously maintained and not be unsightly in appearance or in a state of disrepair. 5. A final lighting plan must be approved by the Community Development Department. 6. Obtain a Boulevard Feature Permit for any work that needs to be done within the boulevard. 7. The City will not issue the Certificate of Occupancy until the stipulations are met and/or an Escrow or Letter of Credit is provided for incomplete improvements. 8. This approval does not include the signs shown on the drawings. Separate sign permits are required. 9. This site plan approval shall expire one year from the date of approval unless a building permit has been obtained and construction of the project begun; or an extension has been requested and issued by the City Council, as required by Section 547.13, Subd. 9 of the City Code. Adopted by the City Council of the City of Richfield, Minnesota this 13th day of September 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk hCU' ~. 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Date: 10/16/2009 Re: ECOsmarte Parking Lot Analysis -Richfield, MN ECOsmarte is planning a 5,500 square foot expansion to their building at 1600 East 78t" Street in Richfield, MN. Their building will have 11,250 square feet after the expansion. The proposed building plan requires a variance from the City of Richfield because ECOsmarte is proposing to provide less parking for the building than what is required by the city's ordinance. The purpose of this memorandum is to document the current parking lot usage and to recommend the appropriate amount of parking for the expanded building. The number of occupied parking stalls was counted from 8:00 to 9:00 a. m., 11:15 a.m. to 12:30 p.m. and 3:30 to 5:00 p. m. on Wednesday, October 14, 2009 to document the peak parking lot utilization. The results are shown in Table 1 _ The peak parking lot usage was 18 occupied stalls. The building square footage is proposed to increase by 96%. Factoring the peak parking demand by this ratio means 35 parking stalls should be provided for the expanded building. There are no loading docks planned for the building. If ECOsmarte receives semi-truck deliveries, they should be scheduled for the morning before the parking lot fills up. Otherwise additional stalls should be provided to account for the stalls that would be blocked by the semi-truck delivery. i agle 1 - EC 8:00 a.m. Osmarte Parkin Lot Utilization • • -• 5 1 6 . 8:14 a.m. 1 6 1 7 8:41 a.m. 1 7 1 g 8:52 a.m. 1 courier) 8 1 g 8:55 a.m. 1 (courier) 7 1 g 9:00 a.m. 7 1 8 11:15 a.m. 15 1 1 17 11:19 a.m. 1 16 1 1 18 11:25 a.m. 1 15 1 1 17 11:42 a.m. 1 16 1 1 18 11:44 a.m. 1 15 1 1 17 12:28 p.m. 1 14 1 1 16 12:30 p.m. 14 1 1 16 3:30 .m. 14 1 1 16 3:34 .m. 1 13 1 1 15 4:03 .m. 1 12 1 1 14 4:27 p.m. 1 UPS truck) 13 1 1 15 4:30 .m. 1 UPS truck) 12 1 1 14 4:37 .m. 1 11 1 1 13 4:44 .m. 1 10 1 1 12 5:00 .m. 10 1 1 12 - ~ .:' ~,_ a _. _ Ya`~c I o1 1 ~~-~ Melissa Poehlman From: Dan Haugen [haugen@alfredadler.edu] • Sent: Monday, August 22, 2011 3:56 PM To: Melissa Poehlman Cc: leslie@alfredadler.edu Subject : thanks from dan haugen Melissa Thanks for your time today. i also appreciate your willingness to pass along a couple of thoughts from me, on behalf of the Adler Graduate School. I thought it might be helpful for you to have a few sentences from me. It would probably be easier for you and, in addition, you would have something directly from me for the record. August 22, 2011 Good evening. First, I would like to congratulate EcoSmarte on their success in arriving at a place where a significant increase in physical plant has become necessary. While I am not able to be in attendance at tonight's meeting, I am inclined to support the plan for increased square footage. I certainly have no reason to oppose the plan. However, I do want the folks at EcoSmarte to be aware of some likely limitations as it concerns access to our parking lot at 1550 East 78th Street. That is, given the fragile condition of our parking lot, I am • inclined to close access to our parking lot from the EcoSmarte parking lot. We have recently been advised to replace our parking lot at a cost of $300,000 plus. Since we have decided to patch the lot for now, and delay construction of a brand new lot, we must do everything we canto extend our existing parking lot's life. As such, intensified traffic -particularly heavy equipment -must be limited. Again, I congratulate EcoSmarte and its staff on their success. Along with that, I wanted to offer my thoughts about the Adler Graduate School's parking lot and the likely changes in access to that lot. Regards, Dan Haugen, PhD AGS President r: 8/2?/2U l 1 1600 78th St E -Site Plan Amendment 08111 Surrounding- Comprehensive Plan LDR LDR LDR PRK PRK LDR P PRK 77th St E ~o~ M RC DRO d Q RC RC = RC .~ C .~ ~ RC m RC 78th St E 0 50 100 200 300 400 Feet HDRO -High Density Residential /Office N RC -Regional Commercial PRK -Park LDR -Low Density Residential I:\GIS\Community Development\Staff\Melissa\Projects\Zoning Cases\1600 78th St CP.mxd 1600 78th St E -Site Plan Amendment 08/11 Surrounding Land Use ~ DPLX RES pp~ PRK PRK RES P PRK 77th St E h~ VAC d Q COM COM APT p COM '~ ~ COM m ~OM 78th St E 0 50 100 200 300 400 Feet N COM -Commercial ' APT -Multi-Family Residential DPLX -Two-Family Residential PARK -Park VAC -Vacant I:\GIS\Community Development\StafflMelissa\Projects\Zoning Cases\1600 78th St LU.mxd !i_ 7 1600 78th St E -Site Plan Amendment 08E11 Surrounding Zoning MR-1 R MR_1 R R C- C-2 C-2 77th St E p ~h MU-R U-C m Q ~ MU-R MU-R C M U-R +~ c .~ ~ MU-R O m U-R 78th St E 0 50 100 200 300 400 Feet N MU-R -Mixed Use -Regional MU-C -Mixed Use -Community C-2 -General Commercial MR-1 -Two-Family Residential R -Single-Family Residential I:\GIS\Community Development\StafflMelissa\ProjectslZoning Cases\1600 78th St Z.mxd ~x ~ STAFF REPORT ~.H... AGENDA SECTION AGENDA ITEM # REPORT # CITY COUNCIL MEETING ' ~_ ~'~~ SEPTEMBER 13, 2011 RESOLUTION 12 190 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIG URE REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of 2011 Revised/2012 Proposed Budget resolutions adopting 2012 preliminary property tax levy, setting truth in taxation hearing date, authorizing budget revisions, and authorizing revision of 2011 budget of various departments. RECOMMENDED ACTION: By motion: Adopt the attached resolutions establishing the 2012 preliminary property tax levy and proposed date for the Truth in Taxation hearing, authorizing budget revisions, and authorizing revision of 2011 budget of various departments. II. BACKGROUND On September 12, 2011, a special City Council meeting will be held for the purpose of presenting and discussing the 2011 Revised/2012 Proposed Budget and 2012 preliminary property tax levy. Consequently, as a result of this meeting, staff recommends that the City of Richfield's preliminary gross tax levy be set at $16,980,700, which includes a levy for general fund operations of $14,150,500, a debt service levy of $1,868,845, a tax abatement levy of $262,655, and an equipment and technology levy of $698,700. The 2012 preliminary gross levy represents a 3.98% increase from the 2011 gross levy. III. BASIS OF RECOMMENDATION A. POLICY • The City Charter establishes that at a special budget meeting of the Council on or before September 15, the City Manager must submit to the .Council a proposed budget and a budget message in the form and containing the information specified in Section 7.06. This follows the Truth in Taxation Statute, which in the past overrode the Charter process for budget adoption. • Consequently, as required by the Truth in Taxation legislation (MS 275.065) each "taxing authority" must certify its proposed property tax levy for payable year 2012 to the County Auditor on or before September 15, 2011. "Taxing authority" includes all counties, all school districts, all cities regardless of population, all towns and all special taxing districts. No local units of government are exempted from this requirement. • In addition, each "taxing authority" with a population of 500 or more, must certify to their County Auditor the date that has been selected for the Truth in Taxation hearing by September 15, 2011. This Truth in Taxation public hearing must be held between November 25 and December 28, 2011 and must occur after 6:00 p.m. $. CRITICAL TIMING ISSUES • Along with the 2011 Revised/2012 Proposed budget and preliminary property tax levy, City staff is also recommending a date for this year's Truth in Taxation public hearing. It is recommended that this year's hearing be set for 7:00 p.m. Tuesday, December 6, 2011. As Council Members are aware, at these public hearings, the tax levy may be reduced from the preliminary tax levy, but not increased. • All official action concerning the preliminary tax levy and setting dates for the Truth in Taxation hearings must be concluded before September 15, 2011. C. FINANCIAL • The preliminary gross levy for taxes payable 2012 is $16,980,700. • Levy. limits for 2012 have been repealed. • The City's tax capacity rate will increase from 54.98% in 2011 to 60.5823% in 2012. Included in the 2012 preliminary gross levy is a levy to fund the purchase of rolling stock and technology equipment of $698,700. This levy is in place of the issuance of debt to fund these purchases. A final resolution for consideration authorizes the revision of the 2011 budget to conform to the most recent 2011 revenue and expenditure projections. D. LEGAL • N/A E. ENVIRONMENTAL CONSIDERATIONS • N/A IV. ALTERNATIVE RECOMMENDATION~S~ • The City Council could adopt a lesser 2012 preliminary property tax levy or 2011 Revised/2012 Proposed budget or select other allowable Truth in Taxation hearing dates. V. ATTACHMENTS • Resolution Adopting a Proposed Budget and Tax Levy for the Year 2012 • Resolution Authorizing Budget Revisions • Resolution Authorizing Revision of 2011 Budget of Various Departments VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A RESOLUTION NO. RESOLUTION ADOPTING A PROPOSED BUDGET AND TAX LEVY FOR THE YEAR 2012 WHEREAS, the Minnesota Truth in Taxation law provides for a proposed tax levy to be certified to the County Auditor by September 15, 2011 and then recertified before December 31, 2011. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The budget for the City of Richfield for the year 2012 is hereby approved and adopted with appropriations for each of the departments to be as follows: General Fund Leg islative/Executive Administrative Services Public Safety Fire Services Community Development Public Works Recreation Services Transfers TOTAL GENERAL FUND $ 760,480 1,139, 930 7,803,320 3,482,540 1,121,720 4,034,030 1,596,830 13,680 $19,952,530 2. The estimated gross revenue of the City of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 2012 which are more fully detailed in the City Manager's official copy of the 2012 budget, are hereby found and determined to be as follows: TOTAL GENERAL FUND $19,952,530 3. There is hereby levied upon all taxable property in the City of Richfield a direct ad valorem tax in the year 2011, payable in 2012 for the following purposes and in the following amounts: PURPOSE AMOUNT General Fund' $14,150,5002 Equipment 698,700 Debt Service 1,868,845 Cedar Point Tax Abatement 262,655 ~ Provision has been made in the General Fund for the payment of the City's contributory share to Public Employees' Retirement Association. 2 General Fund Levy includes all fiscal disparities distribution amounts. 4. The budget for the Housing and Redevelopment Authority of Richfield for the year 2012 is hereby ratified and approved. There is hereby levied upon all taxable property in the City of Richfield a direct ad valorem tax in the year 2011, payable in 2012 for the following purposes: PURPOSE AMOUNT Housing and Redevelopment Authority $503,777 5. A certified copy of this resolution shall be transmitted to the County Auditor. 6. The Truth in Taxation public hearing shall be set for 7:00 p.m. December 6, 2011. Adopted by the City Council of the City of Richfield, Minnesota this 13th day of September 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk RESOLUTION NO. RESOLUTION AUTHORIZING BUDGET REVISIONS WHEREAS, the City Charter and Minnesota Statutes provide for a process for adopting an annual budget and tax levy; and WHEREAS, the City Charter provides certain authority for the City Manager and/or City Council to revise the annual budget; and WHEREAS, it would be beneficial to restate such authority with the adoption of the budget. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. The City Manager may increase the budget by City Council action provided that unbudgeted receipts will be available to equal or exceed the increased expenditures. 2. The City Manager may authorize transfers between divisions within a department providing the transfers do not increase or decrease the department or total budget. 3. The City Manager may transfer budgeted amounts between departments only with the approval of the City Council. Adopted by the City Council of the City of Richfield, Minnesota this 13th day of September, 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF 2011 BUDGET OF VARIOUS 'DEPARTMENTS WHEREAS, Resolution No. 10455 appropriated funds for personal services, other expenses and capital outlays for each department of the City for the year of 2011; and WHEREAS, The City Charter, Chapter 7, Section 7.09, gives the Council authority to transfer unencumbered appropriation balances from one department to another within the same fund at the request of the City Manager; and WHEREAS, The City Manager has requested a revision of the 2011 budget appropriations in accordance with Charter provisions and as detailed in the Proposed 2012 budget document. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. That the 2011, appropriations for each department of the General Fund be amended to establish the following totals: General Fund Legislative/Executive $ 745,290 Administrative Services 1,104,930 Public Safety 7,596,430 Fire Services 3,372,730 Community Development 1,107,140 Public Works 3,982,080 Recreation Services 1,557,050 Transfers 15,960 TOTAL GENERAL FUND $19,481,610 DECREASE $ 231,200 2. Estimated 2011 gross revenue of the City of Richfield from all sources, as the same are more fully detailed in the City Manager's official copy of the proposed 2012 budget, are hereby revised as follows: DECREASE $231,200 3. That the City Manager and the Finance Manager bring into effect the provisions of this resolution. Adopted by the City Council of the City of Richfield, Minnesota this 13th day of September 2011. Debbie Goettel, Mayor ATTEST: Nancy Gibbs, City Clerk