City Council Meeting - March 14, 2023
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[Timestamp] Mary Supple: comments. All right. Good evening, everyone. Thank you for your patience as we worked out our technical challenges. Um, I'm going to call to order the regular city council meeting of the city of Richfield. It is March 14th and it's 7:04 p.m. If you are able, please join us in the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Thank you. Um before we go to the open forum, I want to give a warm welcome to our new city clerk, Dustin Leslie. And Dustin, if you want to say a few words to introduce yourself.
[Timestamp] Dustin Leslie: Sure. Thank you, mayor, members of the council. It's a pleasure to be here. Uh my name is Dustin Leslie. I'm the new city clerk. Previously, I was a city clerk at the city of Robbinsdale for the past two years and uh did all the city clerk stuff over there, elections, city council support, assisted the city manager in a lot of things. Prior to that, I worked at the state of Minnesota for four years in emergency communications technology. I led the implementation of text to 911 within the state of Minnesota. Um is just one of the projects I did. and before that I was a 911 dispatcher at Hennepin County. So come with some varied experience. Um I'm excited to be here and I've gotten a really warm welcome from all the staff and the council members from Richfield. So I really appreciate that. Thank you.
[Timestamp] Mary Supple: Thank you. We look forward to working with you. Thanks. All right. Um we're going to be going on to the open forum. Are we ready, Mr. Swanson, for the timer? I'll go ahead and read the introduction while you're getting all that set up. Um, thank you for attending tonight's meeting. I have a few reminders about open forum. If you are watching online and you'd like to call in, you can dial 1-415-655-0001. Use webinar access code 2459 271 3397 and the password 1234. Um, if you would like to submit comments for future meetings ahead of time in writing, you can refer to the council agenda and minutes web page to find the email address to send it to. So, when I call on you, please sign in and state your name and address. I will begin timing after that. And you have three minutes. We want to make sure that we respect people's time in case there's more than one person that wants to speak this evening. So, please respect the time limit. We're all neighbors here and want to provide a safe environment to state our opinions about municipal policies. Please stick to issues. This is not a forum to discuss individuals. The council will be listening and taking notes, but will not be responding to the comments. This open forum is designed to hear from you, not to be a debate. Thank you. All right. So, are we set to go? All right. Thank you. Um, our first commenter is Larry Ernster. And I think you've got all the tech stuff figured out. I believe Mr. Ernster had some slides he wanted to show, so we'll get those set up. Did you get a chance to sign in while we're getting everything up?
[Timestamp] Larry Ernster: how do you advance the slide? Okay, we're not going to uh No. All right. Okay. My name is Larry Ernster. I live at 6727 Elliott Avenue. I'm here tonight to speak about Best Buy TIF. On March 6th, I attended a special works session between Housing Redevelopment and Best Buy. Best Buy is immediately requesting the termination of its MAA agreement, even though the agreement was to run until the end of its tiff in 2025. The MAA puts a cap or a floor on the assessed value of Best Buy's corporate offices. Tiff financing is complicated. Tonight, I hope to shed some light on the complexity of TIFF while using the Best Buy model, TIFF as an example. uh tiff. This is a typical graph of how tiff works. Before the tiff starts, the assessed value of the property is determined. The value in blue is fixed throughout the life of the tiff and the property taxes go to the general fund the county and the school district. Then in 1999, the tiff started. Land improvements were made and the property appreciated. That's the salmon colored part of the graph. Taxes on the appreciation are separate and go to housing redevelopment pay note state of Minnesota and a bond that built the Penn Avenue bridge. Then after the tiff ends, the green is the expected tax revenue. Using the data points presented at the March 6th housing redevelopment Best Buy meeting and then through follow-up conversations, I can put the following numbers on the graph. Best Buy's corporate office is 118 million. The amount of tax increment funds collected in 2022 is 1.6 million. And looking at the property tax records for Best Buy, their tax bill in 2022 was 4.1 million. Subtracting the 1.6 from the 4.1, I calculate the baseline property tax to be 2.5 billion. Then by multiplying the 1.8 by 2.5 and dividing by 4.1 I calculate the baseline property value to be 74 million. Best Buy is requesting 49.4% uh let's say 50% reduction in their assessed value. 50% is half or uh half of 118 or 159 million. 159 million is less than the 74 million and reduces property taxes from baseline property. You can also see the red, which is Richfield's total lost tax base. If Best Buy's request for 49.4 4 is accurate, then Best Buy will get 49.4 in two years after the tiff ends. Anyway, my greater concern is that Richfield is looking at a significant loss of their tax base and property taxes if commercial properties are assessed downward. My two minutes are up, three minutes are up, and Mary Best will continue the presentation.
[Timestamp] Mary Supple: All right. So, our next speaker is Mary Best. If you could state your name and address and sign in and then your three minutes will start.
[Timestamp] Mary Best: Uh my name is Mary Best and I also live at 6727 Elliott. Uh TIFF is a many faceted issue. Uh we would appreciate responses to the following questions delivered at the next city council meeting on 3/24/23 and also in writing and thank you in advance. Uh first the observation Best Buy is asking for a 49.4% reduction in the assessed value of their office property. That amounts to $1.9 million benefit over the next two years for a total of $3.8 million. What does Richfield gain from granting that request? Best Buy's reduction request is based on an estimation of a future appraisal that has not been completed. Why would Richfield agree to a multi-million dollar agreement when we do not know what we are agreeing to? The MAA has capped the appreciation of Best Buy's property at 118 million. Best Buy's corporate office is located at 494 and Penn Avenue, one of Minnesota's most prime real estate locations. What would be the estimated value of Best Buy's property if the MAA had not been in place? If Best Buy's estimate is accurate, the assessed value of their property and many other commercial properties will decrease. How will Richfield balance its budget to accommodate a significant loss in the assessed value of commercial properties and the subsequent loss of tax revenue without raising property taxes. There exists a PGO note. In 2022, Richfield paid $598,000 into that note and it is currently valued at $57 million. someone is or will be receiving the money Richfield is depositing. Who are the recipients and when will they be paid? Including the Best Buy tiff, Richfield has authorized 13 TIFFs, nine redevelopment tiffs and four housing tiffs. The city council sets a precedence by granting Best Buy's request what is to keep other tiffs from requesting the same benefits. Best Buy had 57 billion in revenue in 2022 and their CEO receives a salary of 15.6 million. Richfield is a small city whose entire annual budget is only $26 million. Why is it so important for Best Buy to get a $ 1.9 million concession when they will probably receive it in two years anyway? The core values for city council is to be fiscally responsible and to put its citizens first. Will the city council remember its responsibility to the cities of Richfield when it comes time to vote on Best Buy's request? How would you vote if it was your money? Thank you.
[Timestamp] Mary Supple: Thank you. So, our next speaker is Kathleen Balaban. Right. Um, we'll pause and turn off the slide show before you get started so you're not distracted.
[Timestamp] Kathleen Balaban: I haven't set up yet. Okay. Well, you you can sign in while he's setting up the timer. While I'm writing my name down, I'm just going to have a personal comment here. I find that extremely distracting. It's demeaning, degrading, and a distract from my ability to communicate to you at ease. I find really you know a gentle your time is up Mary is all I and most of us that distracts us. Well, I'd appreciate it if you wouldn't use it for my presentation here. You can let me know. I don't want to hear that damn bing.
[Timestamp] Mary Supple: That's fine. I will tell you when the time is up.
[Timestamp] Kathleen Balaban: Okay. Thank you. Oh, my name is Kathleen Balivan and I live at 6526 Stevens Avenue South. And according to Richfield's charter, the city council is responsible for not only the performance of the city manager and its directors, but also the commissions and commissioners. With that said, during the pandemic, Richfield offered videos of every commission, which was very informative, and we could go back and watch them when we had the time. We are now back to business as usual. And if we don't attend the actual meeting, the minutes are the only thing we are offered, and there are no discussions, presentations, or documentation. a real loss to the citizens. I just also noticed or I also noticed that there's no contact information for the commissioners. If I have a question, I have to go to a city staffer. I can't contact the commissioner at anywhere. The only way I can get at a commissioner is if I go to a meeting and I only have three minutes, whether in person or via an email letter. If I look further into the commissions, the city development department, the CDD, represents staff of the city charter commission, planning commission, housing and redevelopment authority, economic development authority, and the creating and updating of all the city ordinance and codes that are presented to and by these commissions that are presented and approved by the city council. I know the city attorney takes care of some of the other codes, but zoning is city development. Tonight, you are being asked to approve a one minute or first reading for the PUD zoning change with no real backup detail, nothing but a three-page letter that changes our interior city. I asked the previous director of finance uh if Richfield could sustain constant redevelopment into TIFF money. He referred me to the CDD director, Don Stark, at the time. I was stunned. But how? But now I know why. I'm asking the city council for four things this evening. One, I'm legally disabled and I'm asking that Richfield return to videotaping all of the city meetings and any documentation handed out and/or referenced to be included in the minutes. Two, I am asking that the city of Richfield provide every chairperson from these commissions, boards, and/or authorities access to us through a Richfield email address. Give them one so that we can contact them. Three, do not approve a zoning change without backup documentation to tell you why and when it needs to be done. And four, most important, please, please, please review the CDD responsibilities and involvement in multiple commissions. Just like city commissioners, you can't have a city commissioner on one and sit on two commissions. We have multiple multiple issues here. You know, it's almost like we have the fox in the hen house. Thank you very very much.
[Timestamp] Mary Supple: All right. Thank you. Is there anyone else who wishes to speak that's here in the audience? Is there anyone who has called in to speak on from online?
[Timestamp] Dustin Leslie: Mayor and council, I do not see anybody online.
[Timestamp] Mary Supple: Then we will close the open forum. Thank you. Our next item is approval of the minutes of the city council work session of February 28th, 2023 and the city council regular meeting of February 28th 2023.
[Timestamp] Sean Hayford Oleary: I move approval.
[Timestamp] Sharon Christensen: Second.
[Timestamp] Mary Supple: Okay, we've had a motion and a second for approval of the minutes. Is there any discussion? All right, hearing none. All in favor, please say I.
[Timestamp] Council Members: I.
[Timestamp] Mary Supple: All opposed. All right, we've approved the minutes. Thank you. Next is approval of the agenda.
[Timestamp] Rori A. Coleman-Woods: I move the approval of the agenda.
[Timestamp] Sharon Christensen: Second.
[Timestamp] Mary Supple: Okay. Uh the agenda approval of the agenda has been moved and seconded. Is there any discussion? All in favor of approving the agenda, please say I.
[Timestamp] Council Members: I.
[Timestamp] Mary Supple: All opposed. And we've approved the agenda. Next, we'll move on to the consent calendar. City Manager Rodriguez.
[Timestamp] Katie Rodriguez: Thank you, Mayor Supple. The 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 on these items is necessary. On tonight's consent calendar, item A, consider a first reading of an ordinance amendment to eliminate the minimum lot size requirement for a planned unit development. Item B, consider the approval of a Centers for Disease Control and Prevention Infrastructure Grant. And these are the items that I present to you as part of the consent calendar tonight.
[Timestamp] Sean Hayford Oleary: I move approval.
[Timestamp] Sharon Christensen: Second.
[Timestamp] Mary Supple: Okay. We've had a motion for the approval of the consent calendar and a second. Is there any discussion? All right. All in favor, please say I.
[Timestamp] Council Members: I.
[Timestamp] Mary Supple: All opposed. And we've approved the consent calendar. Next, we'll move on to resolutions. And I'm going to turn it over to Council Member Christensen. It's on page 30. If you have to scroll.
[Timestamp] Sharon Christensen: Thank you, Mary Supple. Uh the COVID-19 pandemic has had a disproportionately negative impact on many Richfield residents, especially households with low incomes and those residents who are black, indigenous, excuse me, and people of color, BIPOC. In 2022, the city designated $300,000 in American Rescue Plan Act, the ARPA, funds towards social services that would help to mitigate some of these negative impacts. On December 15, 2022, the city issued a request for proposals, an RFP, for $150,000 of ARPA social services funds, seeking proposals from nonprofit organizations that provide services and activities that help mitigate the negative impacts caused by the pandemic on economically disadvantaged Richfield community members. Several priorities were identified for the funds, including promoting housing security and stability, promoting healthy childhood environments, promoting healthy and safe living environments, promoting economic stability, improving healthy food access, building strong communities, and reducing racial disparities. Proposals were due on February 2nd, 2023, and seven nonprofit organizations submitted proposals requesting $183,135 in funding. On March 1st, a committee consisting of two community development staff members, one public safety member staff member, and two members of the public reviewed the proposals and are recommending that $160,000 be awarded to the following organizations. Cornerstone Advocacy Services, $35,000, which is included in services to victims of domestic violence. Conflict Resolution Center, $30,000. conflict resolution training, restorative circles, resource navigation and mediation services for apartment residents. Child care training, capacity building for Latino and Latino immigrant communities were from Mera, $15,300. People with Capes, $12,000. Parent share environmental education and community building activity for current and past participants of the kids at home program. Tapestry $20,000. English Spanish classes, community meals, bilingual community care, and bilingual music lessons for Latine, immigrant, and economically disadvantaged households. Trail $7,700. transportation and recreational and social activities for people with disabilities and VEP $40,000 housing advocacy, financial assistance, case management, and resource navigation for economically disadvantaged households. More rental assistance funds from the state of Minnesota were available in 2022 than was anticipated and $41,854.56 of the 2022 contract awarded to VEP in 2022 remains to be spent. The 2023 ARPA social service contract will include these remaining funds as well as the proposed $40,000 award for a total contract award of $81,854.56. Recommended action was by motion to approve a resolution awarding $160,000 in American Rescue Plan Act funding to seven different nonprofit organizations, aiding community members negatively and impacting by the impacted by the COVID-19 pandemic and authorizing the mayor and the city manager to execute service contract amendments with the organizations.
[Timestamp] Mary Supple: All right. You've just made the motion. Is there a second?
[Timestamp] Sean Hayford Oleary: Second.
[Timestamp] Mary Supple: It's been moved and seconded. Did staff want to add anything?
[Timestamp] City Staff (Amy Urban): I don't have anything to add. Mayor Supple, members of the council.
[Timestamp] Mary Supple: All right. Is there any discussion? I would like to thank all the people that served on the committee and also all of the organizations. I believe some of the representatives are here in the audience. Um, these are all really very very important um, services for our community and I am very excited that we have this funding available through the ARPA monies. Is there anyone else that would like to add anything? All right, then I'm going to call the question. All in favor of approving the resolution, please say I.
[Timestamp] Council Members: I.
[Timestamp] Mary Supple: All opposed. All right, we've approved the resolution. Next, we're going to move on to the city manager's report.
[Timestamp] Katie Rodriguez: City manager Rodriguez, nothing to report tonight.
[Timestamp] Mary Supple: All right. And before you go, Miss Urban, I neglected to say thank you. So, thank you for your work on that. All right. So, there's nothing in the city manager report. We'll move on to claims and payroll.
[Timestamp] Walter Burk: I'd move claims and payroll.
[Timestamp] Sean Hayford Oleary: Second.
[Timestamp] Mary Supple: All right. It's been moved and seconded to approve claims and payroll. Any discussion? Thank you. All our staff. Thank you. All right. All in favor of approving claims and payroll, please say I.
[Timestamp] Council Members: I.
[Timestamp] Mary Supple: All opposed. All right. We've approved claims and payroll. We'll move on to hats off to Hometown Hits. And I'm going to turn it over to Council Member Coleman-Woods.
[Timestamp] Rori A. Coleman-Woods: Thank you, Mayor. Um we have uh uh hats off to uh to the human rights commission uh this week and uh to uh Chris Swanson, our liaison and uh particularly Walter Burk, our our chair. uh but uh through their help and their leadership, we have a legal kiosk here in the city of Richfield, which is just a great asset for our community, for folks that need access either to the free legal aid uh or legal forms or if they need an opportunity to uh to appear before court and can't make it down to the courthouse. the kiosk, the virtual kiosk here in the city now gives people the opportunity to access uh legal aid, access forms, and even access the courts. Um, and so that happened because of uh uh just heads up thinking by our human rights commission and advocacy by staff and commission. And so great job and uh we're I'm really I'm really excited for this resource that our that our community has. So good work, Chris, and everybody else. Before you move on, is there a legal aid clinic that either just happened or is about to happen? There there was also a This is what happens when you get several lawyers on the human rights commission. Um, no that also hats off to everybody on our uh human rights commission, but this week we hosted our second uh legal clinic and were able to serve dozens of community members and um with housing law issues and family law issues and uh will and uh dealing with deceased uh family members. And we we didn't have an immigration attorney with us, but we're able to make referrals for folks that had had immigration issues. uh also uh so just a a great opportunity and that's something that's grown and picked up momentum and we're adding a second legal clinic uh for later this year and we just want to continue to build on that. So heavy heavy lifting great work for the human rights commission. Thanks mayor.
[Timestamp] Mary Supple: Thank you council member Hayford.
[Timestamp] Sean Hayford Oleary: No items tonight.
[Timestamp] Mary Supple: All right. Council Member Christensen.
[Timestamp] Sharon Christensen: Yes. I'd like to give a hats off to uh some of our small businesses in the community. We recently had an issue in our family of locked keys in the vehicle. And um one of the uh one of particular business in that I I think of is it's called locksmith for you. It's over on the western edge of uh 66th and Queen over there. They did a fabulous job having to make a new key for for a family member and um they came out and they were very cordial and you know confident in what they were doing. and they had all the facilities right there in the truck and they got it going right away. So, heads off to small businesses. Thank you.
[Timestamp] Mary Supple: Um I have a reminder that there are still some commission openings and applications run through March 17th. Um there are two spots on the advisory board of health, two spots for the human rights commission and two spots for the Richfield Tourism Board. One spot is for the restaurant representative and one is for a resident representative. And so you can um go to the city website under commissions and boards to access the um application and you can apply through March 17th. I also wanted to do a hats off to Hometown Hits to all of the elementary students that participated in the winter walk to school. I was able to join the um children at Centennial Elementary and Richfield Dual Language School and everybody was bundled up and we walked around the block with the dual language school kids and there was a winter fashion show of all their hats and mittens and scarves at Centennial Elementary. So, hats off to all the kids that are getting out there and getting some fresh air. Um, I also was fortunate to participate in the League of Minnesota Cities um, lobby day this past week at the Capitol. And I want to thank our legislators um, Representative Howard and Senator Wickland that met with us personally to talk about um, issues important to the city of Richfield. And um, also hats off to Dr. Huemiller, our recreation services director, who testified this morning in the tax committee on behalf of Richfield and did a fabulous job. So, hats off on all that great work. All right, so at this point, if there are no further hats off and we have completed all of the business, we stand adjourned. Thank you.