1987 11 12Housing and Redevelopment Authority Minutes
November 12, 1987
CALL TO ORDER
Vice Chairman Horn called the meeting to order at 7:30 P.M.
Present were Commissioners Swenson and Bohn. Also present were
Don Ashworth, City Manager and Todd Gerhardt, Administrative
Assistant.
APPROVAL OF MINUTES
Motion by Swenson, seconded by Bohn to approve the minutes of
October 5, 1987, as presented. All voted in favor and the motion
carried.
THANK YOU NOTES FROM SENATOR SCHMITZ AND REPRESENTATIVE KELSO
Ashworth explain that his office received thank you notes from
both Senator Schmitz and Represenative Kelso in regard to their
meeting. Ashworth further explained it is always nice to bring
in the area representatives to simply say "Thank you".
AUTHORIZE INSTITUTING APPRAISAL/RELOCATION/CONDEMNATION PROCESSES
-BERNIE HANSON AND MODEEN-HENDRICKSON
Ashworth explained that there is the possiblity that we will not
be able to reach an agreement with Modeen-Hendrickson on the
value of their property. This property and Bernie Hanson's pro-
perty are two important pieces in regards to the construction of
the Medical Arts building the spring of 1988. To keep within the
time frame for construction this spring, condemnation procedures
would have to start right away. The procedure would consist of new
appraisals of the land and buildings for both properties (Hanson and
Modeen-Hendrickson) and relocation appraisals.
Ashworth also discussed the possibility of Bernie Hanson relocating
his business on Lot 5, Block 1, Frontier Development Park along West
79th Street. The HRA directed staff to pursue a purchase agreement
on this parcel.
Motion by Bohn, seconded by Swenson that HRA authorize staff to
initiate a land and relocation appraisal and condemnation pro-
ceedings for the property of Bernie Hanson and Modeen-
Hendrickson. All voted in favor.
NORTHERN STATES POWER CONTRACT
Ashworth explained as a part of the downtown redevelopment, pre-
sent overhead lines are scheduled to be placed underground.
Ashworth further explained when NSP sent out their estimate for
this work, it was way over our engineer estimate. Staff then met
with NSP several times to negotiate some type of new policy that
brings their cost back in line with our costs. The results of
these meetings was a policy change by NSP.
ERA Minutes
November 12, 1987
Page 2
Ashworth futher stated that this item was placed on the HRA agenda to
inform the members that, as a part of the 1988 budget, the repayment
of the promissory note will be payed through ~RA.
CONSTRUCTION UPDATE
Ashworth explained the progress to date on the downtown redeve-
lopment. Utility construction has been completed and paving
should also be completed by the end of the week. Ashworth stated
that condemnation procedure on Martin Ward and Jim Burdick will
be heard by the end of the month.
UPDATE REPORTS - CHADDA
Retail farwest
Ashworth gave overview of the desirability of having a grocery
store in Chanhassen and that it has been the interest of ~RA to
try and locate a store here. Unfortunately, the market here
still can not support a full store. Mr. Cooper is willing to
locate a store in Chanhassen, but would need assistance. Mr.
Johnson explained the type of assistance which C~ADDA is
requesting. Their request would consist of a land write down,
soil correction and redevlopment loans or grants. ~orn expressed
his concern about setting a precedence with providing this type
of assistance. Commissioner Swenson explained that she would
have no problem with the concept but would like to see numbers
layed out.
MEDICAL ARTS BUILDING
Mr. Johnson explained that we are still looking for a spring of
1988 construction time frame. Mr. Johnson requested to HRA to
have the staff sit down with Windfield to work out the final num-
bers on the special assessment reduction program.
HOUSING PROJECT
Mr. Johnson explained how the ~ousing Project would be financed
and the impact of ~RA's assistance. With the HRA's additional
assistance, the project could provide below market rate rental
units to elderly individuals, thus making the project eligible
for tax exempt revenue bonds.
Ashworth explained that he would like to also look at the oppor-
tunity of research the use of Community Development Block grant
fund for this subsidy for those qualifying seniors. Staff will
work with CHADDA to work out the number and the opportunity of
using Community Development Block Grant money.
HRA Minutes
November 12, 1987
Page 3
APPROVAL OF BILLS
Motion by Bohn, seconded by Swenson, to approve the bills dated
10-19-87. All voted in favor.
ADJOURNMENT
Motion by Swenson, seconded by Horn, to adjourn the meeting at 9:38
P.M. All voted in favor and the motion carried.