Work SessionItem 1Outcome pending
Discussion of Potential Cannabis Regulations
The Richfield City Council and Planning Commission held a joint work session to discuss potential local regulations for adult-use cannabis businesses, which were legalized by the Minnesota State Legislature in 2023. Staff was scheduled to present recommendations covering where cannabis businesses could locate within the city, how many retail locations to allow, required buffer distances from schools and residential areas, hours of operation, signage rules, and registration fees. An ordinance was expected to need adoption by the end of 2024, ahead of anticipated cannabis sales beginning in 2025.
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Key figure: Unspecified maximum allowed by state — Staff recommended charging the maximum registration fees permitted under state statute for LPHE and cannabis business registrations to offset staff time and mandatory compliance inspection costs.
Potential benefit
If adopted, local regulations would give the city meaningful control over where cannabis businesses operate—limiting proximity to schools and residential neighborhoods—while registration fees could offset the cost of staff time and mandatory compliance inspections, reducing the burden on taxpayers. Allowing retail locations could also generate economic activity and tax revenue within Richfield.
Concern to consider
Because state law prohibits cities from banning cannabis businesses outright, Richfield's options are limited to time, place, and manner restrictions. Without thoughtful local rules, cannabis retail could cluster in certain neighborhoods or near sensitive uses. The regulatory process also requires staff resources and legal counsel, and any missteps could expose the city to legal challenges.
What happens next: Staff anticipated bringing a draft ordinance to the Planning Commission for a public hearing in September 2024, followed by a first reading before the City Council in October 2024, with adoption needed before the end of 2024.
Sources: Work Session agenda (city portal) ↗
City CouncilItem 2.AOutcome pending
Application for Livable Communities Pre-Development Grant for Penn Station Development
The City was scheduled to consider adopting a resolution authorizing a $100,000 Livable Communities Pre-Development grant application to the Metropolitan Council on behalf of the proposed 'Richfield Flats' development at 6501-6525 Penn Avenue South. An LLC developer was proposing to build 40 units of affordable housing on this HRA-owned property, targeting households earning as low as 30% of the Area Median Income. The grant application deadline was July 22, 2024, and a Council resolution of support was required as part of the submission.
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Key figure: $100,000 — Livable Communities Pre-Development grant amount being applied for from the Metropolitan Council to fund early-stage design, financial, and community engagement activities
Potential benefit
If approved, this would bring up to $100,000 in Metropolitan Council grant funds to cover early-stage costs such as design workshops, financial studies, and community engagement — at no direct cost to taxpayers. This proposal would create 40 units of affordable housing, including accessible units, and would advance the city's strategic goal of remaining an affordable place to live.
Concern to consider
A similar project on this same site received a Pre-Development grant in 2020 but ultimately failed to secure financing, resulting in partial return of funds. There is no guarantee this attempt will fare differently, and the city would be committing staff capacity to prepare and administer the grant with an uncertain outcome.
What happens next: If the resolution was adopted, the City would submit the grant application to the Metropolitan Council by July 22, 2024. If awarded, the City would enter into a formal grant agreement and administer pre-development activities for the Richfield Flats project.
Sources: City Council agenda (city portal) ↗
City CouncilItem 4Outcome pending
Second Reading: Ordinance for Capital Improvements Using Liquor Contribution Special Revenue Fund
The Council was scheduled to take a second and final reading of a transitory ordinance authorizing $500,000 in expenditures from the Liquor Contribution Special Revenue Fund for capital improvement projects. These funds derive from city-owned liquor store profits and were already incorporated into the 2024 Capital Improvement Budget for several park and recreation related projects. Under City Charter Section 7.12, a transitory ordinance is legally required before special revenue funds can be spent on capital improvements.
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Key figure: $500,000 — Total expenditure from the Liquor Contribution Special Revenue Fund authorized for 2024 park and recreation capital improvements, sourced from city liquor store profits
Potential benefit
This funding mechanism uses profits from the city's liquor stores — rather than property taxes or new debt — to pay for park and recreation improvements. The $500,000 was already budgeted and approved in December 2023, so this ordinance was expected to be the final procedural step to formally unlock that spending.
Concern to consider
Council discussion noted that existing liquor store profits are not sufficient to cover all community needs, suggesting park and infrastructure funding gaps may persist beyond what this ordinance addresses. The specific projects funded were not detailed in the available agenda materials.
What happens next: If adopted at second reading, the ordinance would take effect and authorize the city to begin spending the $500,000 on the identified 2024 park and recreation capital improvement projects.
Sources: City Council agenda (city portal) ↗
City CouncilItem 5Outcome pending
First Reading: Ordinance Amendment Adjusting Parking Requirements
The Council was scheduled to consider a first reading of an ordinance amendment that would update city-wide parking requirements across several categories, including reducing minimums for Class III Restaurants and standardizing multi-family housing parking at 1.25 stalls per unit across all zoning districts. City staff raised safety concerns about the multi-family reduction and offered an alternative recommendation requiring 1.5 stalls per unit minimum with discretion to reduce to 1.25 under certain conditions, while the Planning Commission recommended the original lower-minimum version. A second reading was tentatively scheduled for July 23, 2024.
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Potential benefit
Reducing parking minimums for restaurants and multi-family housing could lower development costs, potentially enabling more affordable housing and commercial investment. Standardizing requirements across zoning districts would simplify the development approval process and align city policy with Metropolitan Council transit-oriented development goals.
Concern to consider
City staff flagged safety issues including narrow east-west rights-of-way under 36 feet wide that impede emergency vehicle access in winter, a lack of sidewalks in some areas, and the risk of displaced parking spilling into residential neighborhoods. Enforcement of resulting parking restrictions would add operational cost to Public Works and Public Safety.
What happens next: If the first reading was approved, a second reading was tentatively scheduled for July 23, 2024. The Planning Commission also recommended the Council consider directing staff to study sidewalk policies, funding, and options for reducing or eliminating parking requirements in areas close to transit.
Sources: City Council agenda (city portal) ↗
City CouncilItem 7Outcome pending
Approval of Claims and Payroll
The Council was scheduled to approve routine claims and payroll for the period ending July 5, 2024, covering accounts payable checks and payroll disbursements totaling approximately $1.86 million. This is a standard procedural item appearing on every council agenda to formally authorize the city's financial obligations already incurred in the normal course of operations.
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Key figure: $849,465.53 — Accounts payable checks 329475–329753 as of July 5, 2024
Potential benefit
Routine approval of claims and payroll ensures city employees are paid and vendors are compensated on time, maintaining uninterrupted delivery of municipal services residents depend on.
Concern to consider
No notable concerns for residents; this is a standard procedural action required for city fiscal management and transparency.
What happens next: If approved, the city's finance department would process all listed payments as authorized under the council's action.
Sources: City Council agenda (city portal) ↗