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1988 08 15SPECIAL CITY cOUNCIL MINUTES AUGUST 15, 1988 [Note: This was a special meeting of the Chanhassen City Council to consider adoption of various special assessment rolls. Due to recording problems, these minutes have been prepared in abbreviated form. The City Council followed the special meeting with a worksession to discuss the 1987 audit report (presentation by Bob Voto, City Auditor) as well as a presentation by Don Ashworth regarding the 1989 budget. As the latter part of the meeting was a worksession, no minutes were prepared for such.] Mayor Hamilton called the meeting to order at 7:30 p.m. MEMBERS PRESENT: Mayor Hamilton, Councilmen Horn, Johnson and Geving. MEMBERS ABSENT: Councilman Boyt STAFF PRESENT: Don Ashworth, City Manager; Todd Gerhardt, Administrative Assistant; Gary Warren, City Engineer VISITORS PRESENT: Bernard Hanson, Henry Pauly, Lou Krueger, A1 Klingelhutz, Jack Barnes, Gary Brown, Mike Sorenson, Nancy Hillman, Fr. Barry Schneider, Richard and Eunice Peters, Gary Ehret from BRW, Mary Durben, and Chris Burns ASSESSMENT HEARING, SOUTH IXIiUS LAKE PHASE I IMPRO~, PR~ 85-17: Mayor Hamilton opened the public hearing. In doing such, he noted that correspondence had been received from current property owners purchasing their properties anticipating that no assessments were outstanding. Mayor Hamilton noted that the City does have a development contract with Bloomberg Companies and, as a part of that development contract, monies have been escrowed and Mr. Bloomberg has guaranteed payment of all assessments for lots shown in the assessment roll. As the assessments are technically being placed against the property now being owned by individual property owners, those owners were required to receive notice of this hearing and the proposed assessments. Again, the total of assessments has been guaranteed by Mr. Bloomberg and any motion to adopt this roll should include such as a condition. Mr. & Mrs. Richard Peters spoke thanking the City Council for the opening com- ments made byMayor Hamilton. That opening statement cast a new light on the entire proceedings that they had not been aware of. They understoodMayor Hamilton's points regarding state law and, as long as a condition was placed on the adoption of the roll regarding payment by Bloomberg Companies, they were satisfied. In addition, they had anticipated being a spokesman for other prop- erty owners similarly protesting this assessment. In light of the Mayor's com- ments, they felt that the other property owners would be similarly happy with the Council's action if conditioned as mentioned. As no other persons were present to speak on this issue, Councilmen Gevingmoved to close the public hearing. Seconded by Councilman Horn. Following discussion, Councilman Hornmoved, seconded by CouncilmanGeving, the adoption of Resolution 88-81 adopting the assessment roll for South Lotus Lake Phase I Improvements, as included in the Council's packet and dated August 12, 1988, in the aggregate amount of $82,491.76 (the City received a $21,765.00 I2tWCON/~ grant for storm drainage improvements), subject to Mr. Bloombergpaying assessments in accordance with the development contract for that subdivision. All voted in favor and themotion carried. SPECIAL CITY COUNCIL MINUTES AUGUST 15, 1988 PAGE 2 ASSESSMENT HIiARING, WEST VILLAGE HEIGHTS SEWER ANDWATER PROJECT, PROJEC~ 87-1: Mayor Hamilton called the hearing to order and asked if there was anyone present wishing to speak on the proposed roll. In light of the fact 'that no one was present, Councilman Geving moved to close the public hearing. Seconded by Councilman Horn. All voted in favor and the motion carried. Following discussion, Councilman Horn moved to approve Resolution 88-82 adopting the West Village Heights Sewer and Water Project Special Assessment Roll as included in Councilme~mber packets and dated July, 1988 (herebymade a part of these minutes) in a total ~ount of $185,248.96. Motion seconded by Mayor H~milton. All voted in favor and the motion carried. ASSESSMENT HEARING, DOWNTOWN REDEVELOPMENT PROJECT 86-11A: Mayor Hamilton called the public hearing to order. The Manager asked to make opening comments regarding changes in the proposed roll which had been identified after preparing the roll. The Y~nnager's con~nents were as follows: - Richard Steiner, Parcel No. 25-0122000: Street frontage was improperly included on the back side of the pro?erty. With the straightening of the road, the engineer logically anticipated an assessment for roadway purposes, however, review found that the Post Office had paid assessments for both Laredo as well as Chan View. In accordance with City policies, a third side assessment could not be sustained in light of the fact that a "benefit" would have to be found. - Wilbar, Inc. (Klingelhutz Property), Parcel No. 25-0130100: Similar to the Steiner property, it was found that Mr. Klingelhutz's property does not have frontage on Great Plains Blvd. Accordingly, the roll is incorrect in showing a proposed frontage assessment. - Kallestad Property, Parcel No. 25-0130800: The parking lot assessment for Mr. Kallestad appears to have significantly deviated from that originally proposed in the feasibility study. The costs associated with Pauly, Kallestad, Pryzmus, and the City parcels should be reviewed again prior to adoption. Tabling these to September 12, 1988 would be in order. - St. H~ubert's Church, Parcel No. 25-0500040 and old St. Hubert's Church, Parcel No. 25-0136500: The City Manager noted that the assessment for St. Hubert's Church was higher than anticipated by the church. A change had occurred during construction wherein the watermain lying on the west side of the church property was found to be in poor condition. Given typical life spans of watermain (30 years), it was anticipated that the watermain would not require replac~men~ and that its location would not interfere with gas, sewer, etc., stubs into the property. Both of those conditions were found to be incorrect and rather than leaving a deteriorated pipe, a decision was made to replace the entire length of watermain from Chan View to West 78th Street. The total cost of the watermain replacement was approximately $20,000 with the church's share being $12,000. Staff was recommending that a 50% "life credit" be given to the church bringing the additional watermain assessment up about $6,000. In addition, stor~nsewer costs for the entire project area were higher than forecasted in the feasibility study. Most property owners did not notice that this one line item was increased as the contractor's bid for sewer, water, and SPECIAL CITY COUNCIL MINUTES AUGUST 15, 1988 PAGE 3 streets were less than originally projected by the engineer. Accordingly, most property owners saw reductions in the proposed assessmmnt for sewer, water, and roadway and their total assessment was actually lower than origi- nally proposed even though the storm sewer portion was higher. As the church did not have other forms of assessment, the $3,000 increase in the assessment for storm sewer became noticeable. In regards to the assessment for old St. Hubert's Church, the Manager noted that he had not had an opportunity to review the engineer's calculations regarding the assessm~at for that property. Accordingly, he would request that the assessment for both the old St. Hubert's Church and St. Hubert's Church be tabled to September 12, 1988. The following persons spoke and their comments are in an abbreviated form: Fr. Barry Schneider: The amount of the assessments for both the old St. Hubert's Church and St. Hubert's facility are higher than presented to the church as a part of the City's acquiring lands to complete the project. Fr. Schneider felt that the City should honor figures as presented during the nego- tiations for acquisition of lands from the church. The Council directed the City Attorney to review points brought out by Fr. Barry. A1 Klingelhutz/Jack Barnes: Mr. Klingelhutz simply wanted to state that he was in agreement with the assessment roll if the street frontage assessment ~s deleted as had been reconm~nded by the Ma_nager. Gary Brown, Parcel No. 25-6920020: Mr. Brown stated that he had not been notified of the project. The propertylooksmuch worse than it does today than it did when we started the project. Things are a mess. He believes the City should pay him. The Engineer noted that the property did have significant construction debris. Restoration would occur as soon as possible. Mr. Brown's section does not include underground watering as occurs in many of the areas downtown. Accordingly, sodding (total restoration) had bccn placed on hold until after the weather became cooler (September 1, 1988 anticipated). The City Attorneywas instructed to review the notification question. Additionally, staff is to again review the basis of the assessments against Mr. Brown. Mike Sorenson, Parcel No. 25-0133300: Mr. Sorenson similarly stated that he had not been notified and he did not sign a waiver for trespassing. He believes that he has a new watermain and a new water service as a part of his building construction in 1979. Accordingly, he sees no benefit from these supposed improvemsnts. Similarly, Frontier Development has storm sewer and he does not benefit from storm sewer. Staff was instructed to look at a potential corner lot credit for both Mr. Sorenson as well as Mr. Brown, review the method of assessn~nt in comparison to other projects where typically the City does give a credit of one-half of the SPECIAL CI1~% COUNCIL MINUTES AUGUST 15, 1988 PAGE 4 shorter side. In addition, the City Attorney should review the question regarding illegal access (for both the Brown property as well as Sorenson property). Nancy Hillman, Parcel No. 25-3500380: Does not understand the necessity for paying a storm sewer assessment. She thought that they had paid a storm sewer assessment previously. There is storm sewer in Chan View and accordingly does not see a benefit. Harry Pauly, Parcel Nos. 25-0131200 and 25-0131600: Mr. Pauly believes that there are lot size discrepancies with the proposed assessments. Bernie Hanson, Parcel No. 25-0121500: Similar to others, Mr. Hanson had not been notified of the project. He does not understand how he is benefitting from this project. He had all of the things that they are proposing to assess him for before the project started. Hearing no additional comments, Councilman Gevingmoved to close the public hearing. Seconded by Mayor Hamilton. All voted in favor and the motion carried. Mayor H~ilton moved the adoption of Resolution 88-83 adopting the assessment roll for the Downtown Redevelopment Project 86-11A as included in Council member packets dated August 12, 1988 (hereby made a part of such minutes) in the aggre- gate amount of $2,403,536.23 the exception of the following parcels: PIN OWNER 25-0121500 25-0130300 25-0131200 25-0131300 25-0131400 25-0131600 25-0131800 25-0132000 25-0133300 25-0136500 25-0500040 25-3500380 25-6920020 Hanson, Bernard and Mary City of Chanhassen Pauly, Henry and Gloria City of Chanhassen Pryzmus, John and Sharon Pauly, Henry and Gloria Kallestad Enterprises (Pony Express) American Oil Company Enright-Sorenson Church of St. Hubert's Church of St. Hubert's Hillman, Phillip and Nancy Brown, Gary (car wash) The parcels identified represent parcels for which questions arose during the public hearing or for which City staff had recommended additional review and are to be resubmitted to the City Council for final disposition on September 12, 1988. Seconded by Councilman Horn. All voted in favor and the motion carried. Motion by Councilman Horn, seconded by Councilman Geving to adjourn the meeting. All voted in favor and the motion carried. Meeting adjourned at 9:30 p.m.