08-17-11regular CITY COUNCIL MEETING MINUTES
RICHFIELD Richfield, Minnesota
Regular 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 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 go 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; Tom 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, Heyman Addition in Wellington'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 1IJ ..
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Date Approved: September 13, 2011
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Cheryl Kr mho z Steven L. Devich
Recording Secretary City Manager