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1986 12 04HRA MINUTES DECEMBER 4, 1986 CALL TO ORDER: Chairman Whitehill called the meeting to order at 7:35 p.m. Members present: Whitehill, Swenson, Horn, Robbins and Bohn. Also present were Don Ashworth, City Manager and Barbara Dacy, City Planner. APPROVAL OF MINUTES: Motion by Swenson, seconded by' Horn to approve the October 16, 1986 minutes subject to the deletion of the second and third sentences in the third paragraph under Financial Criteria Discussion and subject to removal of the second sentence of the second paragraph on page 2. Whitehill, Horn, Swenson and Bohn voted in favor. Robbins abstained. Motion carried. REQUEST FOR LOAN PAYMENT~ BOWLING CENTER: Ashworth explained that because the feasibility study had not been completed as soon as anticipated, he had scheduled this item for tonight's agenda without a chance to speak with John Dorek. He stated that the HRA should table final action on this item so that he could consult with Dorek to determine whether or not the center island could be coordinated with the improvements of the installation of the road along the west side of the property. Dorek stated that the primary reason why they did not want the center island installed is because of the steep grade at that particular location. He stated that the center island would create less parking, cause snow plowing problems and the grade would be difficult during the winter. He felt that after the road goes in, the City and the Bowling Center could look at whether or not the island is necessary. Whitehill asked Dorek about the present configuration of the parking area in front of the bowling center entrance. Dorek explained that the center island is not there now and parking spaces exist near the entrance. Ashworth explained that during construction, the sidewalk was not completed to the dimen- sions indicated on the site plan. Ashworth recommended that the item be tabled so that staff could meet with John Dorek to review the scope of the project and to work out an agreement regarding the installation of the center island. Bohn asked where the parking ramp would be located. Larry Smith from Housing Alliance, Inc., stated that it would be located adjacent to the Bowling Center property line. Motion by Swenson, seconded by Whitehill to follow the Manager's recommendation. All voted in favor and the motion carried. CHADDA HOUSING AND RETAIL OPTIONS: Ashworth stated that in reviewing the proposed housing and retail options submitted by CHADDA, if the full set of conservative criteria prepared by the HRA MINUTES DECEMBER 4, 1986 PAGE 2 financial team were followed, that none of the proposed projects would be feasible. He stated that the HRA has the ability to establish the policy regarding what type of bond pay back period would be appropriate and establish other criteria suggested by the auditor. He stated that attached to the report is the submittal from Holmes and Graven discussing the details of each of the cash flow sheets for each of the projects. He stated that in each case the project would extend the defeasance of the ori- ginal bond sale. He stated that he has asked CHADDA to be pre- pared to make some type of commitment to the HRA. Johnson distributed additional information regarding requested actions to be taken by the HRA. He-stated that four projects are to be completed in three phases. Larry Smith from Housing Alliance reviewed key architectural revisions in the plans concerning the housing element and that' the grocery store use would not be financially feasible on the north side of West 78th Street. He then reviewed the revision in the Retail East site design. -- Dave Winkels of Winfield Development described their intentions to construct a 20,000 square feet convenience retail at the northeast corner of West 78th Street and Laredo Drive. He stated that they anticipated a spring construction start in 1987. He stated that it would take approximately four to six months to complete. He stated that the $1 million building would become fully assessible in 1988 for taxes paid in 1989. He said the type of uses that could be located in the center are convenience stores, dry cleaners, sporting goods, florists, shops and bouti- ques. He stated that they needed to begin the process to market the Chanhassen area to generate interest in that site. Sid Inman of Holmes and Graven discussed the implications of the tax changes and discussed the cash flow analysis sheets distri- buted in the packet. He stated that the analysis does not include the special assessments proposed in the downtown feasibi- lity study. Brad Johnson stated that the north side of West 78th Street is expensive to develop. He stated that property should not be assessed and those costs should be funded by other tax increment. Swenson stated that she would prefer that the public improvements be installed and there should be a priority for their installa- tion. She also stated that the cost analysis should include the special assessment figures. Johnson stated that the timing of when the public improvements were to be made and when the redevelopment project would be made is very crucial and is up to the HRA to decide. HRA MINUTES DECEMBER 4, 1986 PAGE 3 Ashworth stated that the HRA needs to look at each parcel with their particular special assessment costs on an individual basis. Horn stated that he does not agree with the argument that because existing buildings are already generating $265,000 and that because the public improvements are needed anyway, that that should not exempt properties from being assessed. Dave Winkels stated that the HRA needed to start somewhere and to get some type of action occurring on the redevelopment contract. Johnson referred to the handout and asked that the HRA consider authorizing action to negotiate a development contract by January 15, 1987 on the Retail West project and authorize pursuit of land acquisition on the Havlik, Laballo and Krueger properties. Further, he requested the HRA commit City staff to a land acquisition plan by January 15, 1987 on the Laballo and Chanhassen Lawn and Sports property. Motion by Whitehill, seconded by Horn to approve CHADDA's redevelop- ment concept for the north side of West ~8~h street inc!u~-i~g the '- ~hasing proposed by CHADDA and,"'s~0ndly, to aut~orize City s~aff to begin negotiating redevelopment contract~:'~'-~h~ Hou~i'ng ahd Retail West projects. The redevelopment contract should be ready for execution on January 15, 1987. The contracts would include provisions dealing with such items as acquisition and conveyance of property, construction of minimum improvements including develop- ment letter of credit, deficiency agreement guaranteeing some level of tax increment, insurance and events of default. Whitehill, Bohn, Horn, Robbins voted in favor. Swensen abstained. Motion carried. FEASIBILITY STUDY~ DISCUSSION: Ashworth stated that pursuant to the direction at the Joint HRA/City Council worksession, staff has scheduled the item for the HRA to. discuss the details con- tained in the feasibility study. Gary Ehret reviewed the geometrics to the roadway design Alternates A and B and stated that the estimated acquisition costs per parcel and preliminary assessment roll has been'prepared. The HRA discussed the roadway design and each stated that they would prefer Alternative A. Whitehill stated, however, that he would like either A or B. The HRA also discussed the possibility of a bike path and/or sidewalk around the pond in the southwest corner of the project. The HRA stated that the Park and Recreation Commission should work out the details. SPECIAL ASSESSMENT REDUCTION AGREEMENTS~ OPUS CENTER II AND PMT~ INC: Motion by Horn, seconded by Swenson, to approve the Special Assessment Reduction Agreements for Opus Center II and PMT, Inc. and to authorize the Chairman and Executive Director to execute the agreements. All voted in favor and the motion carried. HRA MINUTES DECEMBER 4, 1986 PAGE 4 1987 BUDGET AMENDMENT: Motion by Whitehill, seconded by Robbins to approve the amendment to the 1987 Budget to amend the personal service portion of the budget to include $20,000 for the Administrative Assistant position for Todd Gerhardt. Motion una- nimously approved. APPROVAL OF BILLS: Motion by Whitehill, seconded by Swenson to approve the bills dated November 17, 1986. All voted in favor and the motion carried. .. Motion by Robbins, seconded by Horn to adjourn the meeting at 9:50 p.m. Prepared by: Barbara Dacy December 12, 1986