Richfield City Council — Transcript
Monday, May 19, 2025
Environmental Cleanup Grant Application
Sale of Public Land to Adjacent Business
Transformation Loan Forgiveness Request
Affordable Rental Community Preservation Loan
Richfield Economic Vibrancy Investment and Visual Enhancements (REVIVE) Program
Votes (6)
Consent Calendar (HRA)
Moved by Commissioner [00:02:12] · Seconded by Commissioner [00:02:18]
The HRA approved a single item on its consent calendar: consideration of an amended resolution authorizing the submittal of a grant application to Hennepin County for environmental cleanup of contaminated soils and asbestos at 6501 and 6525 Penn Avenue South. No items were requested to be removed for separate discussion.
Public Hearing: Consideration of Outlot A Property Sale
Moved by Commissioner [00:08:52] · Seconded by Commissioner [00:08:55]
The HRA considered the sale of Outlot A, a parcel of land from a 2008 roundabout project, to Professional Dental Properties (PDP). The property, irregularly shaped and not independently developable, has been maintained by PDP, which also paid taxes. The sale for $67,000 is contingent on establishing permanent easements for city drainage, utilities, and roadway, and a reciprocal easement from PDP to the city. A commissioner clarified that parcel lines would not change, only roadway easements would be established. No public comments were received during the hearing.
Consideration of Transformation Loan Forgiveness Request
Moved by Commissioner Herford Lir [00:16:33] · Seconded by Commissioner [00:16:38]
Kathleen Broen requested full forgiveness of a $8,445 transformation loan from 1996 due to a medical diagnosis requiring her to move before the 2026 forgiveness date. Staff indicated the expected sale proceeds would cover the loan, and anticipation of future medical expenses did not meet the executive director's criteria for financial hardship. The HRA discussed three options: full forgiveness, a pro-rated repayment of $281.50, or no forgiveness. Commissioners weighed compassion against setting precedent and the funding implications for city programs (Fix up fund, Home energy squad). The motion was to require the pro-rated amount.
Executive Director's Report (HRA)
Executive Director Palman provided advance notice of several upcoming HRA and City Council meetings. These included a June 10th work session with City Council and Planning Commission for a preliminary proposal on the American Legion site redevelopment, the State of the Community event on June 11th, and a June 24th work session with City Council regarding vacant parcels at the Lindell Gardens site.
Consent Calendar (EDA)
Moved by Commissioner [00:24:21] · Seconded by Commissioner [00:24:25]
The EDA approved its consent calendar, which included a single item: consideration of loan documents and a subordination of an apartment remodeling loan aimed at preserving three affordable rental communities. No items were pulled for individual discussion.
Establishment of Richfield Economic Vibrancy Investment and Visual Enhancements (REVIVE) Program
Moved by Commissioner [00:27:00] · Seconded by Commissioner [00:27:04]
The EDA discussed and approved the establishment of the REVIVE pilot program, proposed by staff based on a previous work session. The program aims to support eligible businesses in commercial buildings built before 1995 with $2,000-$10,000 forgivable loans for exterior visual enhancements visible from public streets or sidewalks. The goal is to improve the aesthetic and economic vibrancy of older commercial corridors. Commissioners expressed enthusiasm for the program and anticipated positive community impact.
Notable Quotes (7)
The purchase agreement for the property includes a sales price of $67,000. The sale would be contingent upon the HA and PDP terminating the temporary easement for construction and license agreement for parking. The HR granting permanent roadway drainage and utility easements totaling 3153 square ft to the city prior to selling the property to PDP and PDP granting a 446 foot easement on its property to the city for drainage and utilities.
It will remain a a roadway easement. Okay. So the parcel lines will not change after this. Correct.
Uh typically, you know, we look at the settlement statement for the house and it's they show us and prove the gap the difference, right? And so if it's that they are completely underwater and are bringing money to closing, there's absolutely nothing to pay the HA back, we might consider full forgiveness.
So, I will just say informally without making a motion, I I guess I lean towards option two. It it feels a little bit petty to still ask for the 28150, but I feel like it's just a better precedent to point to that our our discretion is to count the 29 years and still ask for the one year.
I do feel like it is fair to pay a settlement amount as you have stated um to continue that good faith right of of what this what this means to these um loans and and where that money goes back to. So I think that's where I sit. um you know these are intended to be paid back. That's kind of the goal of them, right? And so how do we continue to make sure that that happens?
Under the revive program, eligible businesses located in a commercial building that was constructed before 1995 may qualify for financial assistance between 2,000 and $10,000 to make exterior improvements that are visible from a public street or sidewalk.
I just say I'm excited about this program and glad to see the revisions and I hope we get some cool projects coming down the pipeline.
Ordinances & Resolutions (14)
Authorizing submittal of a grant application for environmental cleanup.
Application to Hennepin County for environmental cleanup of contaminated soils and asbestos.
Agreement between the city and Professional Dental Properties related to Outlot A.
Agreement for the sale of Outlot A for $67,000.
Original loan provided in 1996 for home addition.
Fund where repaid HRA loans are deposited.
Program currently funded by the rehab loan repayment fund.
Program currently funded by the rehab loan repayment fund.
Program currently funded by the rehab loan repayment fund.
Documents for an apartment remodeling loan.
Action taken to facilitate preservation of affordable rental communities.
New pilot program for business exterior improvements.
Document outlining the terms for the REVIVE program's financial assistance.
Materials for the REVIVE program to be developed by staff.