7. Authorize Chaska/Chanhassen Hockey Association Real Estate TransferCITY OF 7
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO: Don Ashworth, City Manager
FROM: Todd Hoffman, Park &Recreation Director
DATE: March 19, 1997
SUBJ: Authorize Chaska /Chanhassen Hockey Association (CCHA) Real Estate Transfer
On November 12, 1996, the city council made the following motion regarding the
aforementioned issue:
"Councilman Senn moved, Councilwoman Dockendorf seconded, to approve the concept
of selling that portion of land on Lots 5 & 6, Block 1, Chanhassen Business Park 5`
Addition necessary to facilitate an ice arena to the Chaska/Chanhassen Hockey
Association and directing staff to prepare the necessary paperwork. All voted in favor
and the motion carried."
Since that time, Todd Gerhardt, Attorney Jim Walston, and I have represented the city in the
preparation of this paperwork. Our meetings with Mr. Steve Olinger, President of the CCHA and
other representatives of the association have been cordial. Based upon our negotiated
agreements, please find attached the following documents: a Real Estate Transfer Agreement.
Promissory Note, and Mortgage.
Mr. Olinger and other representatives of the association will be present on Monday evening to
address the city council and respond to questions.
RECOMMENDATION
It is recommended that the city council authorize the execution of the attached Real Estate
Transfer Agreement, Promissory Note, and Mortgage transferring portions of Lots 5 & 6, Block
1, Chanhassen Business Park 5` Addition to the Chaska/Chanhassen Hockey Association.
Execution of said documents to occur only aft. ° �" ;renditions of the documents and any
additional conditions put forth by the city council are met.
Mr. Don Ashworth
March 19, 1997
Page 2
ATTACHMENTS
1. Real Estate Transfer Agreement.
2. Promissory Note.
3. Mortgage.
4. City Council minutes dated November 12, 1996.
5. Report dated November 7, 1997.
6. Narrative, A Vision for Chanhassen/Chaska/Victoria area youth.
REAL ESTATE TRANSFER AGREEMENT
THIS AGREEMENT (the "Agreement ") made and entered into this day
of , 1997, by and between the CITY OF CHANHASSEN, a
Minnesota municipal corporation, with offices at 690 Coulter Drive, Chanhassen,
Minnesota 55317 (referred to herein as the "Seller "), and CHASKA /CHANHASSEN
HOCKEY ASSOCIATION [inset correct name], a Minnesota nonprofit corporation,
(referred to herein as the
"Seller ").
IN CONSIDERATION of the mutual covenants and agreements herein, it is
hereby mutually agreed by Seller and Buyer as follows:
SECTION 1.
SALE AND PURCHASE OF LAND
1.1) Seller shall convey to Buyer and Buyer shall acquire from Seller, upon
the terms and conditions hereof, the real property (all collectively referred to as the
"Subject Property ") described on Exhibit "A" attached hereto.
SECTION 2.
PURCHASE PRICE
2.1) The purchase price for the Subject Property (the "Purchase Price ") shall
be $ payable by Buyer to Seller as follows:
2.1.1) Buyer shall execute and deliver to Seller at the Closing (as
defined herein) a Promissory Note and Mortgage on the forms attached hereto
as Exhibits "B" and "C ". The amount of the Promissory Note shall include all
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of Seller's costs related to the transaction described herein, including Seller's
attorneys fees.
SECTION 3.
TITLE MATTERS
3.1) Seller shall furnish to Buyer within twenty (20) days hereof a current
commitment for the issuance of an ALTA Form B owner's policy of title insurance
(the "Commitment ") issued by a Title Insurance Company acceptable to Buyer
( "Title ") in the amount of the Purchase Price, committing to insure that Buyer will
have good and marketable title to the Subject Property, subject to covenants,
conditions, restrictions, declarations and easements of record; reservation of mineral
rights in the State of Minnesota; and building, zoning and subdivision laws and
regulations.
3.2) In the event any exceptions are listed in the Commitment for title
insurance other than those listed above, if the same results from the voluntary action
of Seller, the Seller shall cause the exception to be removed prior to the Closing.
With regard to any other exceptions, if the Seller fails to remove the same within the
time allowed for closing on the Subject Property, the Buyer shall have the right to
terminate this Agreement as Buyer's sole and exclusive remedy.
SECTION 4.
CLOSING
4.1) The closing (the "Closing ") shall be at a location designated by Seller,
and shall occur ON
, 1997.
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4.2) On the Closing date, Seller shall deliver to Buyer possession of the
Subject Property in an "as -is" condition with all faults accepted by Buyer.
4.3) On the Closing date, Seller shall execute and deliver to Buyer:
4.3. 1) A duly executed limited warranty deed, subject to the exceptions
set forth in Section 3.1; and
4.3.2) A customary affidavit that there are no unsatisfied judgments of
record, no actions pending in any state or federal courts, no tax liens, and no
bankruptcy proceeding filed against Seller, and no labor or materials have been
furnished to the Subject Property for which payment has not been made, and
that to the best of Seller's knowledge there are no unrecorded interests relating
to the Subject Property.
4.4) Seller shall pay at Closing all general real estate taxes levied against the
Subject Property due and payable for all years prior to the year of Closing, together
with any unpaid installments of special assessments due therewith, including Green
Acres deferred taxes if any such obligations shall exist. Seller shall pay at closing the
remaining balance on all levied and pending special assessments owing against the
Subject Property if any such obligations shall exist. Seller and Buyer shall prorate to
the date of Closing all the general real estate taxes levied against the Subject Property
due and payable in the year of Closing if any such obligations shall exist. If the
Subject Property is a portion of one tax parcel, the prorated taxes payable herein shall
be determined on a proportionate square footage basis.
4.5) Seller shall pay on or before Closing:
4.5. 1) state deed tax;
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4.5.2) all costs of updating the abstract of title and all costs associated
with obtaining a title insurance commitment, including name searches, tax
searches, bankruptcy searches, and property inspection fees; and
4.5.3) recording fees for corrective instruments required to remove
encumbrances and place marketable title in Buyer's name.
4.6) Buyer shall pay at Closing:
4.6. 1) all recording fees and charges relating to the filing of the deed;
4.6.2) title insurance premiums; and
4.6.3) the Closing fee charged by a title company, if any.
SECTION 5.
COVENANTS, REPRESENTATIONS, AND WARRANTIES OF SELLER
5.1) Seller, as an inducement to Buyer to enter into this Agreement, and as
part of the consideration therefor, represents, warrants, and covenants with Buyer and
its successors and assigns that:
5.1.1) There are no leases, options, purchase agreements, rights to
redeem, tenancy agreements, or rights of occupancy, written or verbal, and no
person or party has, or will have any rights of adverse possession, regarding or
arising out of the occupancy of the Subject Property;
5.1.2) Seller will maintain in force insurance against public liability
from such risk and to such limits as in accordance with prudent business
practice and suitable to the Subject Property from the date hereof to the Closing
date;
5.1.3) To the best knowledge of Seller, no entity or person has, at any
time:
i) "released" or actively or passively consented to the "release" or
"threatened release" of any Hazardous Substance (as defined
below) from any "facility" or "vessel" located on or used in
connection with the Subject Property; or
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ii) otherwise engaged in any activity or omitted to take any action
which could subject Seller or Buyer to claims for intentional or
negligent torts, strict or absolute liability, either pursuant to statute
or common law, in connection with Hazardous Substances (as
defined below) located in or on the Subject Property, including the
generating, transporting, treating, storage, or manufacture of any
Hazardous Substance (as defined below). The terms set within
quotation marks above shall have the meaning given to them in the
Comprehensive Environmental Response and Liability Act, 42
U.S.C. Sec. 9601 et sM., as amended ( "CERCLA ") and any state
environmental laws.
5.1.4) To the best knowledge of Seller, no person or entity, has, at any
time, ever installed, used, or removed any underground storage tank on or in
connection with the Subject Property; and
5.1.5) There are no wells on the Subject Property.
5.2) The covenants, representations, and warranties contained in Section 5
shall be deemed to benefit Buyer and its successors and assigns and shall survive any
termination or expiration of this Purchase Agreement or the giving of the Deed.
SECTION 6.
ENVIRONMENTAL /SOIL INVESTIGATION AND TESTING,
6.1) Buyer and its agents shall have the right, at the sole option of Buyer, to
enter upon the Subject Property without charge and at all reasonable times from the
date of the execution of this Agreement, to perform such environmental investigation
and soil tests as Buyer may reasonably deem appropriate. If Buyer investigates and
tests the Subject Property pursuant to this section, Buyer shall pay all costs and
expenses of such investigation and testing and shall hold Seller harmless from all costs
and liabilities arising out of Buyer's activities. If the purchase and sale contemplated
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by this Agreement is not closed, Buyer shall, at its own expense, repair and restore
any damage to the Subject Property caused by Buyer's investigation and testing, and
shall return the Subject Property to substantially the same condition as existed prior to
such entry.
SECTION 7.
CONTINGENCIES
The obligations of Seller and Buyer under this Agreement are contingent upon
each of the following:
7.1) Buyer shall have determined on or before the Closing date, that it is
satisfied, in its sole discretion, with the results of the environmental /soil investigations
and tests of the Subject Property. If this contingency is not satisfied by two weeks
before the Closing, Buyer may, at its option, terminate this Agreement by giving
written notice to Seller; and
7.2) Buyer obtaining a written commitment for financing for the construction
of a ice skating facility on terms acceptable to Seller and Buyer.
7.3) Buyer and Seller entering into an agreement pertaining to the use of
improvements (ice skating facility) to be constructed upon the Subject Property.
If the contingencies set forth above have not been satisfied by
, the Buyer or Seller may terminate this Agreement by giving
written notice to the other parry. Upon such termination, neither party shall have any
further rights or obligations under this Agreement.
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SECTION 8.
MISCELLANEOUS
8.1) The covenants, obligations, warranties and representations made by
Seller and Buyer shall survive the Closing of this transaction.
8.3) Any notice, demand, or request which may be permitted, required or
desired to be given in connection herewith shall be in writing and sent by certified
mail, hand delivery, or overnight mail service, directed to Seller or Buyer. Any
notice shall be deemed effective when delivered to the party to whom it is directed.
Unless other addresses are given in writing, notices shall be sent to Seller or Buyer at
the applicable address stated on the first page of this Agreement.
8.4) Time shall be of the essence in this Agreement. If any date or time
prescribed by this Agreement falls on a Saturday, Sunday or holiday, such date or
time shall automatically be extended to the next normal business day.
8.5) Each party hereto shall promptly, on the request of the other party, have
acknowledged and delivered to the other party any and all further instruments and
assurances reasonably requested or appropriate to evidence or give effect to the
provisions of this Agreement.
8.6) This Agreement represents the entire agreement of the parties with
respect to the Subject Property and all prior agreements, understandings, or
negotiations between the parties are hereby revoked and superseded hereby. No
representations, warranties, inducements, or oral agreements have been made by any
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of the parties, except as expressly set forth herein, or in other contemporaneous
written agreements. This Agreement may not be changed or modified except by a
written agreement signed by Seller and Buyer.
8.7) If Buyer defaults under any of the terms hereof, Seller shall have the
right to pursue any remedies available to Seller at law or in equity, including without
limitation, specific performance, damages (including reasonable attorney's fees), and
to the cancellation of this Agreement.
8.8) If Seller defaults under any of the terms hereof, including, without
limitation, the delivery of marketable title to the Subject Property as set forth in
Section 4 hereof, then Buyer shall have the right to pursue any remedies that are
available to Buyer at law or in equity, including without limitation, specific
performance and damages (including attorney's fees), and to the cancellation of this
Agreement.
8.9) If any provision of this Agreement is declared void or unenforceable,
such provision shall be deemed severed from this Agreement, which shall otherwise
remain in full force and effect.
8.10) Failure of any party to exercise any right arising out of a breach of this
Agreement shall not be deemed a waiver of any right with respect to any subsequent
or different breach, or the continuance of any existing breach.
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8. 11) This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective heirs, personal representatives, successors and
assigns.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.
SELLER:
CITY OF CHANHASSEN
:1
Un
Nancy K. Mancino, Mayor
Don Ashworth
City Manager /Clerk
STATE OF MINNESOTA)
) ss.
COUNTY OF CARVER )
BUYER:
CHASKA /CHANHASSEN HOCKEY
ASSOCIATION [insert correct name]
By:
Its
By:
Its
The foregoing instrument was acknowledged before me this day of
, 1997, by Nancy K. Mancino and by Don Ashworth, respectively
the Mayor and City Manager /Clerk of the CITY OF CHANHASSEN, a Minnesota
municipal corporation, on behalf of the corporation and pursuant to the authority
granted by its City Council.
Notary Public
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STATE OF MINNESOTA)
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1997, by and , the
and of CHASKA /CHANHASSEN HOCKEY
ASSOCIATION [insert correct name], a Minnesota nonprofit corporation, on its
behalf.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
Telephone: (612) 452 -5000
JRW
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EXHIBIT "A"
to
REAL ESTATE PURCHASE AGREEMENT
Leal Description of the Subiect Property,
That part of Lots 5 and 6, Block 1, CHANHASSEN LAKES BUSINESS PARK 5TH
ADDITION, according to the recorded plat - described as follows:
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ATTACH -PROM NOTE and MORTGAGE as EX "B" AND "C"
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PROMISSORY NOTE
Chanhassen, Minnesota
, 1997
FOR VALUE RECEIVED, the undersigned, CHASKA /CHANHASSEN
HOCKEY ASSOCIATION [insert correct name] ( "Borrower ") hereby agrees and
promises to pay to the order of the CITY OF CHANHASSEN, or its assigns
( "Holder "), at its principal office at Chanhassen, Minnesota, or such other place as
Holder, or its assigns, may from time to time designate, the principal sum equal to
Dollars ($ ) as
defined herein without interest on the Maturity Date as hereinafter defined. The
principal balance (in the event the same becomes due and payable) shall be payable in
coin or currency which at the time of payment is legal tender for the payment of
public or private debts in the United States of America.
The Maturity Date of this Note shall be the date upon which any of the
following events occur:
1. Borrower fails to construct an ice arena (and obtain a certificate of
occupancy) upon the real property described on Exhibit "A" attached
hereto ( "Subject Property ") in accordance with the plans and
specifications entitled " " dated
on or before 1 2000.
2. The Subject Property is sold, transferred or otherwise conveyed,
voluntarily or involuntarily, to any party without the written consent of
Holder for a period of six years from the date of this Note.
3. A default by Borrower under that certain Real Estate Transfer
Agreement with Holder dated
4. A default under any mortgage secured by the Subject Property.
5. A default by Borrower under any agreement with Holder with respect to:
(a) the transfer of the Subject Property from Holder to Borrower; or (b)
the use of improvements on the Subject Property.
Upon completion of the construction of the ice arena facility as evidenced by
the issuance of a certificate of occupancy and provided: (1) the construction of such
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facility is completed by , 2000; and (2) Borrower is not in default
under this Note, the principal balance of this Promissory Note shall be reduced
$ on each anniversary date of the issuance of a certificate of
occupancy. Provided Borrower is not in default under any agreement referenced
herein, the obligation of Borrower to Holder under this Promissory Note shall be
terminated on the third anniversary date of the issuance of the certificate of occupancy
for the ice arena facility.
The lien created in the amount of the Note shall be subordinate to the lien of
the construction mortgage executed by Borrower in favor of Security Bank in the
amount of $
In the event the Borrower is notified that foreclosure proceedings (by
advertisement, action or otherwise) have been commenced or will be commenced
against the subject property including by way of illustration and not limitation, the
foreclosure of the first mortgage encumbering the Subject Property, then the
undersigned shall within five (5) days of such notice notify the Holder of such
proceedings.
Presentment, protest and notice of dishonor are hereby waived by the
undersigned. The undersigned shall pay all costs incurred by the Holder hereof in the
collection of this Note, including reasonable attorney's fees.
To secure payment of this Note, the undersigned shall execute and deliver to
Holder a Mortgage, a copy of which is attached hereto as Exhibit "B".
IN WITNESS WHEREOF, the undersigned has executed this Note as of the
day and year first above written.
BORROWER:
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CHASKA /CHANHASSEN HOCKEY
ASSOCIATION [insert correct name]
By:
Its
By:
Its
2
STATE OF MINNESOTA)
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1997 by and ,
the and of CHASKA /CHANHASSEN
HOCKEY ASSOCIATION [insert correct name], a nonprofit corporation under the
laws of Minnesota, on its behalf.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, MN 55121
Telephone: (612) 452 -5000
JRW
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ATTACHED EX "A" - LEGAL DESCRIPTION
ATTACH EX "B" - MORTGAGE
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MORTGAGE
THIS INDENTURE (herein "Mortgage "), made and effective this day
of , 1996 between CHASKA /CHANHASSEN HOCKEY
ASSOCIATION [insert correct name], a nonprofit corporation under the laws of
Minnesota, whose post office address is
( "Mortgagor ") and CITY OF
CHANHASSEN, a Minnesota municipal corporation, whose post office address is 690
Coulter Drive, Chanhassen, MN 55317 ( "Mortgagee ").
WITNESSETH, that the said Mortgagor, in consideration of the debt
hereinafter described and for other good and valuable consideration, the receipt of
which is hereby acknowledged, does hereby MORTGAGE, GRANT, BARGAIN,
SELL AND CONVEY unto the said Mortgagee, its successors and assigns, forever,
the following property located in Carver County, Minnesota, hereinafter referred to as
the "Premises ":
A. REAL PROPERTY
All the tracts or parcels of real property lying and being in the County of
Carver, State of Minnesota, all as more fully described in Exhibit "A" attached hereto
and made a part hereof, together with all the estates and rights in and to the real
property and in and to lands lying in streets, alleys and roads adjoining the real
property and all buildings, structures, improvements, fixtures and annexations, access
rights, easements, rights of way or use, servitudes, licenses, tenements, hereditaments
and appurtenances now or hereafter belonging or pertaining to the real property; and
B. PERSONAL PROPERTY
Together with all buildings, equipment, fixtures, improvements, building
supplies and materials and personal property now owned or hereafter acquired and
now or hereafter attached to, located in, placed in or necessary to the use of the
improvements on the Premises, including, but without being limited to, all machinery,
fittings, fixtures, apparatus, equipment or articles used to supply heating, gas,
electricity, air conditioning, water, light, power, refrigeration, ventilation and fire and
sprinkler protection, as well as all furnishings, supplies, draperies, maintenance and
repair equipment, floor coverings, carpets, appliances, air conditioners, shrubbery and
plants (it being understood that the enumeration of any specific articles of property
shall in no way be held to exclude any items of property not specifically enumerated),
as well as renewals, replacements, proceeds, additions, accessories, increases, parts,
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fittings and substitutes thereof, together with all interest of Mortgagor of any such
items hereafter acquired, all of which personal property mentioned herein shall be
deemed fixtures and accessory to the freehold and a part of the realty and not
severable in whole or in part without material injury to the Premises; and
C. JUDGMENTS AND AWARDS
Together with any and all awards or compensation made by any governmental
or other lawful authorities for the taking or damaging by eminent domain of the whole
or any part of the Premises, including any awards for a temporary taking, change of
grade of streets or taking of access.
AND THE SAID MORTGAGOR, for itself, its successors and assigns, does
covenant with the Mortgagee, its successors and assigns, that Mortgagor is lawfully
seized of the Premises and have good right to sell and convey the same; that the
Premises are free from all encumbrances except as may be stated in Exhibit "A" of
this Mortgage; that the Mortgagee, its successors and assigns, shall quietly enjoy and
possess the Premises; and that the Mortgagor will warrant and defend the title to the
same against all lawful claims not specifically excepted in this Mortgage.
TO HAVE AND TO HOLD THE SAME, together with the possession and
right of possession of the Premises, unto the Mortgagee, its successors and assigns,
forever.
PROVIDED, NEVERTHELESS, that if the Mortgagor, its successors or
assigns, shall pay, or cause to be paid, to the Mortgagee, its successors or assigns:
(a) The sum of Dollars
($ ), according to the terms of that certain Promissory Note dated
executed by Mortgagor in favor of Mortgagee in the original
principal amount of Dollars
($ ) attached hereto as Exhibit "B" (hereinafter referred to as "Note ")
in said principal amount, the terms and conditions of which are incorporated herein by
reference and made a part hereof, together with any extensions, modifications or
renewals thereof, the balance of said principal sum, being due and payable in any
event no later than , 2003, or such earlier date as is set forth in the
Note; and
(b) Shall repay to the Mortgagee, its successors or assigns, at the times
demanded all sums advanced in protecting the lien of this Mortgage, in payment of
taxes on the premises, in payment of insurance premiums covering improvements
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thereon, in payment of the principal balance, in payment of expenses of attorneys' fees
herein provided for and all sums advanced for any other purpose authorized herein;
and
(c) Shall keep and perform all of the other covenants and agreements herein
contained;
then this Mortgage shall become null and void and shall be released at Mortgagor's
expense.
The sums of money referred to in (a) -(c) shall also be referred to as "the Indebtedness
Secured Hereby ".
AND IT IS FURTHER COVENANTED AND AGREED AS FOLLOWS:
ARTICLE ONE
SECTION 1.1 Mortgagor will duly and punctually pay or cause to be paid the
Note and all other Indebtedness Secured Hereby, as and when the same shall become
due, and shall duly and punctually perform and observe all of the covenants,
agreements and provisions contained herein and in the Note.
SECTION 1.2 Mortgagor agrees that it will keep and maintain the Premises in
good condition, free from any waste or misuse, and will comply with all requirements
of law, municipal ordinances and regulations, restrictions and covenants affecting the
Premises.
SECTION 1.3 Mortgagor agrees to keep the Premises free from mechanic's,
materialmen's and other liens; keep the Premises free from levy, execution or
attachment, and upon request will exhibit to Mortgagee satisfactory evidence of such
payment and discharge, except as provided in Section 1.5 hereof.
SECTION 1.4 Mortgagor will pay when due and before any penalty all taxes,
assessments, water charges, sewer charges and other fees, taxes, charges and
assessments of every kind and nature whatsoever assessed or charged against or
constituting a lien on the Premises or any interest therein, or the Indebtedness Secured
Hereby ( "Impositions "); and will upon demand furnish to the Mortgagee proof of the
payment of any such Impositions.
SECTION 1.5 Mortgagor agrees to promptly notify Mortgagee of and appear
in and defend any suit, action or proceeding that affects the value of the Premises, the
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Indebtedness Secured Hereby or the rights or interest of Mortgagee hereunder. The
Mortgagee may elect to appear in or defend any such action or proceeding and
Mortgagor agrees to indemnify and reimburse Mortgagee from any and all loss,
damage, expense or cost arising out of or incurred in connection with any such suit,
action or proceeding, including costs of evidence of title and reasonable attorneys'
fees.
SECTION 1.6 In the event that Mortgagor shall voluntarily or involuntarily
cause, suffer or permit (a) any sale, conveyance or transfer of any interest of
Mortgagor, legal or equitable in the Premises; or (b) any mortgage, pledge,
encumbrance or lien, other than the Construction Mortgage executed by Borrower in
favor of Security Bank in the amount of $ , and other than a lien
being contested by appropriate legal proceedings, to be imposed or remain outstanding
on the Premises or the granting of any security interest therein, except as granted in
connection with the Note without the written consent of Mortgagee being first
obtained, then at the sole option of Mortgagee, Mortgagee may declare the entire
amount of unpaid principal and accrued interest due and payable in full and call for
payment of the same in full at once.
ARTICLE TWO
SECTION 2.1 Mortgagor shall obtain and keep in full force and effect during
the term of this Mortgage, at its sole cost and expense, insurance against loss by fire,
lightning and risk customarily covered by standard extended coverage endorsement,
including the cost of debris removal, all in the amounts of not less than the full
insurable value or full replacement cost of the improvements on the premises,
whichever is greater. Such insurance policies shall be written on forms and with
insurance companies satisfactory to Mortgagee, shall name as the insured parties the
Mortgagor and the Mortgagee as their interests may appear, shall be in amounts
sufficient to prevent the Mortgagor from becoming a co- insurer of any loss thereunder
and shall include a satisfactory mortgagee clause in favor of the Mortgagee with loss
proceeds under any such policies to be made payable to the Mortgagee.
SECTION 2.2 Mortgagor will give the Mortgagee prompt notice of any action,
actual or threatened, in condemnation or eminent domain and hereby assigns, transfers
and sets over to the Mortgagee the entire proceeds of any award or claim for damages
for all or any part of the Premises taken or damaged under the power of eminent
domain or condemnation. The proceeds or any part thereof shall be applied upon or
in reduction of the Indebtedness Secured Hereby then most remotely to be paid,
whether due or not, without the application of any prepayment premium, or to the
restoration or repair of the Premises, the choice of application to be reasonably agreed
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upon by Mortgagor and Mortgagee, provided Mortgagor is not in default hereunder,
in which instance the choice of application shall be solely at the discretion of the
Mortgagee.
ARTICLE THREE
SECTION 3.1 If the Mortgagor shall fail to comply with any of the covenants
or obligations of this Mortgage, the Mortgagee may, but shall not be obligated to,
without further demand upon Mortgagor, and without waiving or releasing Mortgagor
from any obligation in this Mortgage contained, remedy such failure, and the
Mortgagor agrees to repay upon demand all sums incurred by the Mortgagee in
remedying any such failure, together with interest on all such sums advanced at a rate
equal to that then in effect under the terms of the Note. All such sums, together with
interest as aforesaid, shall become additional Indebtedness Secured Hereby, but no
such advance shall be deemed to relieve the Mortgagor from any failure hereunder.
SECTION 3.2 Mortgagor will permit the Mortgagee's authorized
representatives to enter the Premises at all times for the purpose of inspecting the
same; provided the Mortgagee shall have no duty to make such inspections and shall
not incur any liability or obligation for making or not making any such inspections.
SECTION 3.3 Each right, power or remedy herein conferred upon the
Mortgagee is cumulative and in addition to every other right, power or remedy,
express or implied, now or hereafter arising, available to Mortgagee, at law or in
equity, or under any other agreement, and each and every right, power and remedy
herein set forth or otherwise so existing may be exercised from time to time as often
and in such order as may be deemed expedient by the Mortgagee and shall not be a
waiver of the right to exercise at any time thereafter any other right, power or
remedy. No delay or omission by the Mortgagee in the exercise of any right, power
or remedy arising hereunder or arising otherwise shall impair any such right, power or
remedy or the right of the Mortgagee to resort thereto at a later date or be construed
to be a waiver of any default or event of default under this Mortgage or the Note.
ARTICLE FOUR
SECTION 4.1 It shall be an event of default under this Mortgage if (a) the
Mortgagor shall fail to pay the Note when and as the same become due and such
failure continues for a period of fifteen (15) days; or (b) the Mortgagor shall fail to
comply or otherwise be in default under any agreement with Mortgagee pertaining to
the use of the improvements to be constructed upon the Subject Property, including
but not limited to the ice facility to be constructed upon the Subject Property; or (c)
44677.03 5
03/05/97
the Mortgagor shall fail to pay when due any other Indebtedness Secured Hereby, and
such failure continues for a period of fifteen (15) days; or (d) the Mortgagor shall fail
to comply with or perform any other term, condition or covenant of this Mortgage or
the Note, and such failure shall continue for a period of fifteen (15) days after written
notice thereof; or (e) the Mortgagor or its assigns shall sell, convey, transfer, further
mortgage or encumber or dispose of the Premises, or any part thereof, or any interest
therein, or agree so to do which is not otherwise allowed under the Note or Mortgage;
or (f) the Mortgagor shall make an assignment for the benefit of its creditors, or shall
admit in writing an inability to pay their debts as they become due, or shall file a
petition in bankruptcy, or shall be adjudicated a bankrupt or insolvent, or shall file a
petition seeking any relief under any present or future bankruptcy or insolvency
statute, law or regulation or shall file an answer admitting to or not contesting the
material allegations of a petition filed against either of them in such proceedings, or
shall not within sixty (60) days after the filing of such a petition have the same
dismissed or vacated, or shall seek or consent to or acquiesce in the appointment of
any trustee, receiver or liquidator of a material part of their properties, or shall not
within sixty (60) days after the appointment without their consent or acquiescence of a
trustee, receiver or liquidator of any material part of their properties have such
appointment vacated.
SECTION 4.2 If an event of default shall occur and be continuing, the
Mortgagee may immediately and without notice to the Mortgagor declare the entire
unpaid principal balance of the Note, together with all other Indebtedness Secured
Hereby, to be immediately due and payable and thereupon all such unpaid principal
balance of the Note and all other Indebtedness Secured Hereby, shall be and become
immediately due and payable and the Mortgagor hereby authorizes and fully empowers
the Mortgagee to foreclose this Mortgage by judicial proceedings or by advertisement
with full authority to sell the Premises at public auction and convey the same to the
purchaser in fee simple all in accordance with and in the manner prescribed by law,
and out of the proceeds arising from sale and foreclosure to retain the principal and
interest due on the Note and the Indebtedness Secured Hereby, together with all such
sums of money as Mortgagee shall have expended or advanced pursuant to this
Mortgage or pursuant to statute, together with all costs and expenses of such
foreclosure, including lawful attorneys' fees, with the balance, if any, to be paid to the
persons entitled thereto by law.
SECTION 4.3 In the event Mortgagee shall have proceeded to invoke any
right, remedy or recourse permitted under this Mortgage and shall thereafter elect to
discontinue or abandon the same for any reason, Mortgagee shall have the unqualified
right to do so and in such event Mortgagor and Mortgagee shall be restored to their
former positions with respect to the Indebtedness Secured Hereby. This Mortgage,
44677.03
03/05/97 6
the Premises and all rights, remedies and recourse of the Mortgagee shall continue as
if the same had not been invoked.
ARTICLE FIVE
SECTION 5.1 When all Indebtedness Secured Hereby has been paid, this
Mortgage and all assignments herein contained shall be void and this Mortgage shall
be released by the Mortgagee at the cost and expense of the Mortgagor, otherwise to
remain in full force and effect.
SECTION 5.2 This Mortgage is made and executed under the laws of the State
of Minnesota and is intended to be governed by the laws of said State.
SECTION 5.3 This Mortgage and each and every covenant, agreement and
other provision hereof shall be binding upon the Mortgagor and its successors and
assigns, including without limitation each and every from time to time record owner
of the Premises or any other person having an interest therein, shall run with the land
and shall inure to the benefit of the Mortgagee and its successors and assigns.
SECTION 5.4 The unenforceability or invalidity of any provision hereof shall
not render any other provision or provisions herein contained unenforceable or invalid.
IN WITNESS WHEREOF, the Mortgagor has caused these presents to be
executed as of the date first above written.
MORTGAGOR:
CHASKA /CHANHASSEN HOCKEY
ASSOCIATION [insert correct name]
By:
Its
By:
Its
44677.03 7
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STATE OF MINNESOTA)
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1997, by and
the and of CHASKA /CHANHASSEN
HOCKEY ASSOCIATION [insert correct name], a nonprofit corporation under the
laws of Minnesota, on behalf of said corporation.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
Telephone: (612) 452 -5000
JRW
44677.03 g
03/05/97
EXHIBIT "A"
to
MORTGAGE
LEGAL DESCRIPTION
That part of Lots 5 and 6, Block 1, CHANHASSEN LAKES BUSINESS PARK 5TH
ADDITION, according to the recorded plat - described as follows:
Permitted Encumbrances
1. Construction Mortgage [describe in detail] .
44677.03 9
03/05/97
ATTACH EX "B" - PROMISSORY NOTE
44677.03 1 O
03/05/97
City Council eking - November 12, 1996
but we are but that's not a fair way to cram it through simply because we are here at the eleventh hour. I think we've
got to follow the ordinance.
Councilman Mason: I agree with everything that's being said here and we are following the ordinance now.
Councilman Senn: Okay, so you're comfortable in your mind making a determination that this project will not, in
any way, shape or form, affect the values of the other properties in the negative?
Councilman Mason: Based on the information I have from the City Attorney, and what I've heard tonight, yes I am.
Based on what our City Attorney said the research that he's done on it and based on what I know about Carver
Beach, yes. I am comfortable with that.
Councilman Senn: Well our attorney's made no evaluation that we have.
Councilman Mason: You asked if I was comfortable moving this tonight and yes I am.
Mayor Chmiel: Okay. We're going to recall that question. There's a motion on the floor with a second.
Councilman Berquist moved, Councilman Senn seconded to table action on the House Moving Permit for
Tom Byrne until appraisals can be brought in showing there will be no adverse affect on the neighboring
property values. Councilman Berquist and Councilman Senn voted in favor. Mayor Chmiel, Councilman
Mason and Councilwoman Dockendorf voted in opposition. The motion failed with a vote of 2 to 3.
Mayor Chmiel: The motion fails. Is there another motion?
Councilwoman Dockendorf. I would respectfully request that we wait 15 minutes to see this appraisal.
Mayor Chmiel: Okay. All right, and that appraisal if forth coming?
Tom Byrne: Yep. It's on the way.
Mayor Chmiel: I'd like to call a recess for.
Councilman Senn: Can't we just table this item and go on with the other agenda items?
Mayor Chmiel: Well we can.
Councilwoman Dockendorf: The other items are going to take a while.
Mayor Chmiel: Okay, let's do that then.... What I'm going to do is ask that we table this for a short period of time
and move on to the next public hearing that we have. We won't sit here and wait to see what happens but I think it's
crucial to get that information that can be provided to us.
PUBLIC HEARING: CONSIDER LAND SALE OF LOTS 5 & 6. CHANHASSEN LAKES BUSINESS.
PARK 5 TH ADDITION TO THE CHASKA / CHANHASSEN HOCKEY ASSOCIATION FOR THE,
CONSTRUCTION OF AN ICE ARENA.
Mayor Chmiel opened the public hearing on this item.
Todd Gerhardt: Mr. Mayor, Council members. Under Minnesota Statute the City Council must consider holding a
public hearing when considering disposing of public lands. Staff did publish a notice in the Chanhassen Villager on
October 31" regarding the proposed sale of land to the Chaska /Chanhassen Hockey Association for the construction
of an ice arena on Lots 5 & 6, Block 1, Chanhassen Business Park 5` Addition. Included in your packet was the
staff report regarding this item, which was on your City Council agenda in September 23, 1996 regarding the Hockey
Association's request for a land transfer. Manager's comments in the packet highlight concerns that staff had
25
City Council Meeting - November 12, 1996
brought up regarding future public works expansion and future relocation of the compost site and the recycling
center. Staff ...is concerned regarding these three items and that the Council will have to deal with these issues down
the line as the need arises for the expansion of all three of these... With that, staff would request that the Mayor and
the Council open the public hearing to solicit public comments regarding this item.
Mayor Chmiel: Okay, thank you. Is there anyone at this time that would like to provide some public comments in
regard to the consideration of the sale of land to Chaska/Chanhassen Hockey Association? Is there anyone here? If
not, I would like to make a motion to close the public hearing.
Councilman Berquist moved, Councilman Mason seconded to close the public hearing. All voted in favor and
the motion carried. The public hearing was closed.
Mayor Chmiel: Okay. Steve.
Councilman Berquist: As I stated before, I'd really like to see this area be available for a hockey association
building. I have a couple of thoughts that I'd like to bounce off everyone. Regarding the donation of the land, and
the value thereof. I understand that there's a problem if the City continues to own the land outright and leases it to
the Hockey Association from a primary lenders point of view. What I would like to explore is the possibility of
putting a five year second mortgage on the property, reducing the balance over a five year period of time. That in
essence gives you your equity and it still provides some assurance to the City that if in fact the thing, heaven forbid,
does not perform, that we have some recourse with the primary lender. That's item one. Item two. I would really
like to be able to see both, or all three functions, the arena, public works expansion, and/or composting and recycling
worked into that site. There's two lots, and I don't know how many acres they are but it's an appreciable amount of
land. I think if we were able to access it off of Audubon we could create a well hidden and very functional public
works facility. In a conversation I had over the weekend there's a problem with any primary lender in any kind of a
joint road or joint easement agreement from a parking perspective or cross traffic perspective. So we'd either have
to create some type of an access area off of Park Circle, Park Road, Park Drive. Whatever that road is. To allow
ourselves access to that remaining land that wouldn't be used by the Hockey Association, or give ourselves access
off of Audubon.
Mayor Chmiel: Anything more?
Councilman Berquist: That's the extent.
Mayor Chmiel: Okay. Colleen.
Councilwoman Dockendorf: Todd, is there room for all uses on this piece of property'?
Todd Gerhardt: The access off of Audubon is real difficult given the contours. It drops off dramatically and there
would have to be ... brought in. I don't know if you could, and you'd have to do a lot of clear cutting through an
existing grove of trees that are there. We looked at trying to incorporate the compost site on what would be off the
parking lot of the plan. And there just didn't seem that there was going to be enough room. Using Eden Prairie's
compost site as an example, and one of the other factors was, do you want a big compost site right next to your ice
arena and...
Councilman Mason: I bet they don't care.
Mayor Chmiel: Just give me ice.
Councilwoman Dockendorf: In terms of public works expansion, would the soils even support a building without
very expensive soil work?
Todd Gerhardt: We don't feel that there's, that an ice arena and a public works facility can exist
26
City Council Meeting - November 12, 1996
Councilwoman Dockendorf: If it were not an ice arena, would it be financially feasible to build a public works
building on that site?
Todd Gerhardt: Yes. Basically the ice arena is the same kind of facility that the public works would be.
Councilwoman Dockendorf: That's all the questions I have right now.
Mayor Chmiel: Okay, Michael.
Councilman Mason: I'm interested in what Steve has to say about trying to figure out if we can do multiple use
there. It sounds from Todd as though that. Todd let me ask you, did you see that as being completely out of the
question?
Todd Gerhardt: No. I think there have been some other discussions that we've been working with the lake
communities in trying to share uses and we've completed a current survey and they mark down their number one, or
our's was shared compost site. I don't think we're ever going to be exempt from having some type of local drop
off...
Don Ashworth: If 1 could Mr. Mayor
Mayor Chmiel: Yes, go ahead.
Don Ashworth: The site would not be big enough to do a sharing, as Todd said, with public works or composting. I
think as we grow at public works there is the potential for the recycling component as it's currently being operated
by Carver County. So there may be sufficient room for ice arena plus that type of an operation, but not composting.
Composting or public works, either of those two would devour the entire site all by themselves.
Councilman Mason: Okay, so just to make this really clear. Recycling and the hockey arena may.
Don Ashworth: May.
Councilman Mason: Be an option. I certainly concur with Councilman Berquist about the need for ice in the city of
Chanhassen. I think all the reasons have been remunerated more than often enough. I'd like to know how we can
move forward with that tonight as we continue the discussions. What we would need to do to protect the City's
interest and make it possible for our Chan/Chaska Hockey Association to do that.
Mayor Chmiel: Okay, Mark
Councilman Senn: Well, first of all I guess I'd like to compliment the Association because I think it's just wonderful
that somebody's come in and said, you know in some type of a partnership relationship, it'd be nice if the City could
do something on the land and we'll take care of doing all the capital improvements and the facility and stuff like that.
That's not generally the way we're approached. I mean we're generally approached is will you do it for us. So I'd
very much like to compliment the Association on that. I think as an end result I think that's what we need to
accomplish. I don't know if we've found the best way to do that yet. Todd, kind of a question. I mean I understand
the staff analysis we've been given, which primarily goes into an analysis of placement of or use of as a public works
facility, compost, recycling, etc. Okay. Have we done any analysis as to, is there another place or a better place or
equally as good a place to provide the same land to the Hockey thing? I mean have we looked at all the alternatives?
I don't know. I'm no expert on it. I mean a corner of Bandimere Park. I mean you know, where the soccer field's
supposed to go in the Villages. Rather than a soccer field, an ice arena with shared parking with the church. Have
we looked at any of the alternatives is what I'm saying?
Todd Gerhardt: I think Todd did sit down with, I think it was Steve and pulled out the city map wherever we owned
land and they tried to find another location that would accommodate the size of this building and parking. We
looked out at Lake Ann. How to use federal monies in acquiring and we'd have to reimburse the federal government
to locate a facility out there. And Bandimere, due to the amount of grading and everything that needs to be done out
27
City Council Meeting - November 12, 1996
there, for future development of that park, it was never a concept to include an ice arena... Those basically are the
only sites where we own property that could handle it.
Councilman Senn: How about under the new referendum to purchase the property on the park referendum?
Todd Gerhardt: I think that plays a factor into how soon they need to get going.
CCHA Representative: Yes. We need to get going with the location... to secure. I won't do any of those, I won't
go any further on the negotiations until we've secured land...
Councilman Senn: Well and I don't know. Yeah, I don't know.
CCHA Representative: This is not an ideal site with respect that it will need some soil corrections... If you've got a
site that's better than that, certainly entertain that offer. But yes, time is growing rather short in respect that we do
need to know where our site will be before we can go further with negotiations with the corporate...
Councilman Senn: A question back to you. In that we now have a plan for a fair number of temporary soccer fields
and we have a long range..., what about the idea of the soccer field that was going to be incorporated in closer now
under the Villages plan? Is that the recreational facility it needs to be? I mean is there possible common parking
then with the church as it relates to this, or what? Or where do we sit? I mean that's kind of all been off in a
separate negotiation but where is that going?
Kate Aanenson: There is no soccer field on the Villages site. That's off.
Councilman Senn: Okay, so that's off now totally?
Kate Aanenson: Yes. The only way there would be a soccer field is if they were to come back in and go through
that process but that has been eliminated from the site plan.
Councilman Senn: Okay, so totally. Okay. All right. I guess if this is, if what I'm hearing is this is kind of like the
only and the best place to put it, I understand our plight as it relates to public works. But at the same time I really
want to see us do something to accommodate the association, because like I say, it's nice to see a proposal of this
fashion. I wouldn't want to discourage it in any way. As we get past this as a concept and the particulars though, 1
think there's one issue we're going to really have to make sure that we deal with and I understand the issue of
providing the land on a lease you know versus a sale. In fact I made that comment when this first came up. Well in
fact we just, our company just represented a client on one that happened about 30 days ago involving 2 acres and a
Holiday convenience store on it, on a long term lease that was financed out. You can finance out land leases. Now,
the only reason that I think we need to look at that harder is, is I don't want to see us put the City in a position
whereby we effectively furnish a gift or a piece of land and our only way to recover that investment is to buy our own
land and the building back if it goes bad. I don't think that's the proper position for us to put the City in. I think
there needs to be some sort of specifics or way designed where we look at what we're providing as an investment to
the community, which is what I think it is, but we also need to protect that investment... in case the thing goes down
the tubes. And nothing against the association but, you know we don't need to end up losing effectively land control
as well as use control and end up with a warehouse functioning out of a hockey dome. And our land effectively
providing a lot of equity to whoever buys it from the bank after it's gone bad. So I think we need to spend some time
on those specifics and those types of protections and make sure that while accommodating what both sides need,
again make sure we accommodate the City's side too. I guess enough said on that, and I think we need to make sure
that happens.
Councilman Berquist: The conversation that I had with the bank about this today, the gentleman indicated that given
the structure of the Hockey Association, and the inherent risk in a project like this, that they would, yeah. You can
definitely finance leased land structures. But a lending institution would have a hard time swallowing it. So what
it's going to amount to if we want to start, and I don't have a problem with it. But what it's going to amount to is
that we're going to have to sit down with the lenders, the proposed lenders and find out what they want and how we
FW
City Council Meeting - November 12, 1996
can help them structure this deal. We're not going to be able to give any direction without knowing what type of end
strings are going to be attached to the mortgage.
Councilman Senn: Steve, I agree but I think we need to make sure that our approval makes us kind of contingent on
participating in that process and making sure that we protect, you know effectively the City's interest. That way, I
mean otherwise sometimes things can just, you know happen as a matter of convenience rather than a matter of need
and again, I understand what you're saying. Churches, by the way, have the same problem when they go to build
new churches because again there's no live, you know one single live, warm person or guarantee or something to
grab onto if the thing goes bad. But I think we're remiss in doing our jobs if we make sure we're not also protecting
our investment in kind of the same fashion. I think it can be worked out. We just need to, I think make sure we do it
right.
Councilwoman Dockendorf: Mr. Mayor, may I?
Mayor Chmiel: Yes, go ahead.
Councilwoman Dockendorf: Well we've got two competing city uses. One very glamorous, one not so glamorous
but both necessary and I'm hearing consensus that we all want to go with making this work for an ice arena. Since
we're only asking for consideration of this to happen I would forward a motion that we approve the sale or lease of
this parcel to the Chan/Chaska Hockey Association contingent on working out the details, keeping the City's interest
in mind, in terms of if it goes bad, etc.
Councilman Senn: Friendly amendment?
Councilwoman Dockendorf: Yeah.
Councilman Senn: Would you turn that last sentence basically saying contingent upon the City's approval of the
final financing conditions, and I think you'll accomplish the same thing?
Councilwoman Dockendorf: Yes, right.
Councilman Senn: City Council's approval.
Councilwoman Dockendorf: Right.
Councilman Senn: I'll second that.
Councilwoman Dockendorf: That gives the Association the wherewithal to go forward on it.
Councilman Berquist: An additional friendly amendment as to the subdivision of the land. In Don Ashworth's
memo to the Council he alludes to the dividing the property so that the City maintains possession of, what I'm
assuming to be the wooded areas that are off of Galpin. So I'm suspecting that he has some use in mind, whether it
be recycling or composting or public works.
Councilwoman Dockendorf: I'd like to retain all pieces of the parcel that are not necessarily necessary for the
construction of the arena and parking.
Councilman Senn: Yeah, I had assumed that in the motion from the staff report. That's fine me the second.
We're only selling, or I mean we will only provide effectively what we need to provide.
Councilwoman Dockendorf: What's necessary.
Mayor Chmiel: Mike.
29
City Council Meeting - November 12, 1996
Councilman Mason: Can we, yeah. Before we vote on this, can we hear what CCHA, what their feelings are on all
of this.
Mark Ekloh: Mayor, Councilmembers. My name is Mark Ekloh. I'm involved in the financing of the association's
building and looking at the different alternatives. We understand the Council's wanting to protect the City's interest
and not get involved in donating something that could go bad, and then benefit some individual. Understand. We're
dealing with a number of large corporations for sponsorship to help build this building. And for us to go ahead and
spend a lot of time designing and building this building, we need to know that the financing thing is a decision that
can be made. We don't want to go through that whole process and then come back to the City. So I think a
compromise would probably be something along the lines of what Councilman Berquist originally proposed. That
you put a second mortgage on behind that lasts for X number of years with a decreasing value each year or
something, and in that way you're assured that your property is protected in the sense that if something goes wrong
in year 1 or 2, you would only be incurring the cost of the arena itself. Not the land. I didn't understand your
statement Councilman Senn when you said we have to buy our own land back. I don't know how that would happen
if we're providing a down payment plus the land, the mortgage will be approximately 60% of the cost of the total
project.
Councilman Senn: And if it goes bad, it goes back to the bank and the bank will sell it to the highest bidder. Okay.
And if we are going to get our land back, we have to put in a bid, which includes effectively the price for the land
and the improvements on it.
Mark Ekloh: It would only be a bid for their mortgage, plus a dollar.
Councilman Senn: Well, whatever they had at the Sheriffs sale. That doesn't necessarily have to be.
Mark Ekloh: But essentially it would only be the building itself that would then be purchased. And that way I think
it gives the City a guarantee and you doing your due diligence in terms of making sure that the building is properly
used. But yet it gives us the freedom to go out and deal with a bunch of these corporations and stuff in terms of
negotiating our final financing for the building. For us to spend the time and energy to pull all these people together
and then come back and go through Council approving the financing package, it would be almost impossible for us
to do that. Unless it's a more cut and dry proposal. Something along the lines of what Councilman Berquist
proposed. And leasing just does not work for us. We've approached three or four different lenders with corporate
help and everyone of them said unequivocally, if leasing is the option, tell them no. It won't work. They've told us
that... information that he received regarding leasing, that given the type of building and the organization that's
building it, the structure of the organization, that leasing just isn't a possibility for us. We would have to say thank
you, but no thanks. It doesn't work for us now if that was the case, where you thought you had to go that route.
Mayor Chmiel: Okay. Roger.
Roger Knutson: Mayor, I just finished going through a project in the City of Plymouth. Lifetime Fitness project.
The City owned the land and just worked through all these issues. Councilman Senn there is a way by a
subordination agreement where we can provide, if they default on their mortgage, we can pay off their mortgage, and
there's a time period for us doing that. We can also talk about assumption, but normally you would not want to
assume a mortgage because you can get a much more favorable rate than they possibly can. So you can structure it
that it's satisfied, and in the case I'm dealing with Norwest Bank, and they have millions at stake. Not $200,000.00.
Millions and millions, and they were very comfortable with it because they knew they were going to get their money.
That's all they wanted so all we have to do, if they default and god forbid they never do, but if they do, then all we
have to do is essentially pay off that first mortgage and the property's our's.
Mayor Chmiel: Okay. Colleen, under those circumstances, do you feel that you'd like to withdrawn your
Councilwoman Dockendorf: Yeah, I was going to say. Let me withdraw it altogether.
Mayor Chmiel: Okay, and the second of that as well?
30
City Council Meeting - November 12, 1996
Councilwoman Dockendorf: Steve, I think you seconded it.
Councilman Berquist: Did I?
Councilman Senn: No I did I guess. I'll withdraw the second.
Mayor Chmiel: Okay. Then I would ask for another.
Councilman Senn: How about a motion that we approve the sale where I guess. Well, I guess what do we term this?
I mean is it actually.
Councilwoman Dockendorf: We're not approving the sale.
Councilman Senn: I mean we're approving the, Roger what are we approving? The concept of the sale?
Roger Knutson: That's all you're doing. Paperwork to follow.
Councilman Senn: Okay. So what we're doing is we're approving the concept of the sale and we're providing, and
we're asking staff to basically provide or.
Roger Knutson: Put the paperwork together.
Councilman Senn: Put the paperwork together and provide the proper safeguards through subordination, second
mortgage, whatever to protect the City's interest in relationship to.
Roger Knutson: You're not...
Councilman Senn: No, no.
Mayor Chmiel: No. I think the motion that Steve made, would you like to repeat that one Steve. No, no. The one
he had before I think probably will play the same part as to what you're saying.
Councilman Senn: No, because I don't buy the 5 year second mortgage. I mean the subordination idea I think
makes sense... it goes the full term of the mortgage.
Mayor Chmiel: That's true. That will interfere with.
Councilman Berquist: I suspect there's going to be some input from the lender as to what his desire is. The
important thing is to express the intent.
Mayor Chmiel: And we're talking strictly considering of the sale with staff preparing all the paperwork as Roger
indicated.
Councilwoman Dockendorf: I will second Mark's motion.
Councilman Senn: And just so the applicant understands, I mean again that paperwork still has to come back for
approval, correct?
Roger Knutson: Oh sure.
Mayor Chmiel: You bet.
Councilman Senn: You can't take that away.
Mayor Chmiel: But we have to start somewhere.
31
City Council Meeting - November 12, 1996
Roger Knutson: I think they have a very plain, clear indication of what the Council's direction is. Now all we have
to do is put it on paper.
Mayor Chmiel: Okay. We've got a motion on the floor with a second. Any other discussion?
Councilman Berquist: Do you want to throw anything on there about the subdivision of the land? The splitting of
the land to ensure that the City has that land that abuts Audubon.
Councilman Senn: Oh okay. Just to basically say that the land, the concept of sale here involves only that land
which is absolutely necessary for the hockey facility.
Councilwoman Dockendorf: That was my understanding as well.
Councilman Senn moved, Councilwoman Dockendorf seconded to approve the concept of selling that portion
of land on Lots 5 & 6, Block 1, Chanhassen Business Park 5 th Addition necessary to facilitate an ice arena to
the Chaska /Chanhassen Hockey Association and directing staff to prepare the necessary paperwork. All
voted in favor and the motion carried.
CONTINUATION OF HOUSE MOVING PERMIT, 6726 LOTUS TRAIL, TOM BYRNE.
Mayor Chmiel: We'll go back to item number 3 on the house moving permit.
Councilwoman Dockendorf: Let me, may I Mr. Mayor?
Mayor Chmiel: Sure.
Councilwoman Dockendorf: I'd like to restate my intent for requesting the continuation or recess or whatever we did
there. My intention was to get some documentation about the valuation of the property and I'm not certain that that's
going to placate my desire to make sure that we're done everything in the proper steps. My desire is to make sure
that the neighbors who are concerned about their depreciating property values, have the opportunity to make their
case that's necessary. My other thought is, as I expressed earlier, it's very unfortunate that we're to this time
constraint. But I also do respect the desire of the applicant to get things moving before the snow flies. Having said
that, I would forward, restate my motion, and maybe I didn't make it a motion last time. That we give the, all parties
concerned the opportunity to provide some documentation about the effect on surrounding property values. And I
want to put a time period of two weeks on that, recognizing that that is a constraint, but also recognizing that the
applicant has gone through every proper step in order to get this accomplished. Somewhere along the line the City
fell down, or perhaps just the way things are normally taken care of that there's not adequate time for people to
figure out what needs to be. Well, anyway. I do have a couple questions, if I may.
Mayor Chmiel: Sure.
Councilwoman Dockendorf. Roger, would the Carver County Assessor have a conflict of interest if he were
appointed to give an independent assessment of this parcel? And the surrounding property values.
Roger Knutson: I can only speculate. I doubt very much that he would do that. Excuse me. I would guess he would
not undertake an assignment to make individual appraisals. The Courts give you the market value data he has on the
whole neighborhood. That's public information. But he wouldn't undertake an appraisal for you. For this purpose.
Councilwoman Dockendorf: Okay. My second question is, in your professional experience, have you seen a
situation similar to this where a property has decreased the value of surrounding property? Considering that this is
an improvement to the current land.
Roger Knutson: No. To be honest with you. That doesn't mean it's not, couldn't be possible but it's very difficult.
Lots of people have tried and probably the most famous case in the State of Minnesota is the airport noise cases,
32
CITY OF --
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO:
FROM:
DATE:
SUBJ:
Don Ashworth, City Manager
Todd Gerhardt, Assistant City Manager
I/
November 7, 1996
Consider the Sale of Land to the Chaska /Chanhassen Hockey Association
Under Minnesota Statute, the city council must hold a public hearing when considering the sale
of public land. Staff published a notice in the Chanhassen Villager on October 31, 1996
regarding the proposed sale of land to the Chaska /Chanhassen Hockey Association for the
construction of an ice arena. The site is located on Lots 5 & 6, Block 1, Chanhassen Business
Park 5"' Addition.
Attached is a copy of a staff report /site plan review from the city council meeting of September
23, 1996, regarding the Hockey Association's request for land transfer.
ATTACHMENTS
1. Notice of Public Hearing
2. City Council minutes dated September 23, 1996
2. Staff Report/Site Plan Review dated September 18, 1996
MANAGER'S COMMENTS
I asked staff to provide a list of projects /functions for which the city might have a need for this
property. The list is as follows:
Public Works Expansion: The existing public works site will not meet our total land needs
as we move into the next century. We can accommodate an additional expansion on the site,
but storage will become critical. Although it is best to keep streets /parks /utilities at one site,
the close proximity of this site to the existing public works building could work, i.e. pull
utility operations out of the existing building and move them to this lot, which would
definitely help our storage needs for sand, gravel, pipes, hydrants, etc. The close proximity
should allow for the sharing of equipment /manpower without being too inefficient; and
Mr. Don Ashworth
November 7, 1996
Page 2
Composting: The existing site at Bandimere Park simply isn't working. Doing nothing is
not an alternative. When Bandimere becomes used as a park, composting operations will
assuredly cease and the city will be in need of a site roughly the size of this site; and
Recycling: Another building expansion at public works will put the existing recycling center
(operated by Carver County) out of business at that location. Again, this becomes a
mandatory function which will necessitate finding another place for this operation.
I recognize the need for hockey within the community. However, I could not simply forget our
other needs. The functions outlined above will generate the necessity for additional land
acquisitions which, in all likelihood, will come out of the taxpayers pocketbook.
Should the council decide that the sale to the Hockey Association was in the best interests of the
city, I would advise that we attempt to keep the sale to solely that portion of the site needed by
the hockey facility, that the site plan be developed in such a fashion so as to allow multiple uses
of the parking lot, driveway, cross easements, etc. And finally, that restrictions be placed into the
deed providing the city with a "first right of refusal" for a depreciated value for the structure
and /or remaining principal outstanding. The same should apply to any sale being considered for
any proposed use other than ice hockey.
DWA (11 -7 -96)
g 'adm m\tg\hockeyri nk.e
Affidavit of Publication
Southwest Suburban Publishing
NOTICE OF PUBLIC HEARING
CHANHASSEN CITY COUNCIL
CITY OF CHANHASSEN
Notice is hereby given that the City of
Chanhassen City Council willhold apublic
hearing on Tuesday, November 12,1996 at
7:30 pat. The purpose of this hearing is to
consider the disposal of a certain tracts of
land to the Chaska/Chanhassen Hockey
Association for the construction of an ice
arena The site is located on:
Lot 5, Block 1, Chanhassen Lakes Busi-
ness Park 5th Addition
Lot 6, Block 1, Chanhassen Lakes Busi-
ness Park 5th Addition
The hearing is being conducted in ac-
cordance with the provisions of Minnesota
Statutes Section 469.029. A plan showing
the location of the proposal is available for
public review at City Hall during regular
business hours.
All interested persons are invited to
attend this public hearing and express their
opinions in regard to this propo d Gerhardt
Assistant City Manager
937 -1900 ext. 119
(Published in the Chanhassen Villager on
Thursday, Oct. 31, 1996; No. 2826)
State of Minnesota)
)SS.
County of Carver )
Stan Rolfsrud, being duly sworn, on oath says that he is the publisher or the authorized agent of the
publisher of the newspapers known as the Chaska Herald and the Chanhassen Villager and has full
knowledge of the facts herein stated as follows:
(A) This newspaper has complied with the requirements constituting qualification as a legal
newspaper, as provided by Minnesota Statute 331A.02, 331A.07, and other applicable laws, as
amended.
(B) The printed public notice that is attached to this Affidavit and identified as No.
was published on the date or dates and in the newspaper staled in the attached Notice and said Notice
is hereby incorporated as part of this Affidavit. Said notice was cut from the columns of the
newspaper specified. Printed below is a copy of the lowercase alphabet from A to Z, both inclusive,
and is hereby acknowledged as being the kind and size of type used in the composition and
publication of the Notice:
S Manager
or his designated agent
Subscribed and sworn before me on
thi day of C/U 1996
Notary Public
Afla'.>G.P•S fA .. .. . -
"9SlN+
a "WEN i rar3uCNz
ale T , tJ :�74FiY PU..L
C J Ni JESOTA
MY CCAl.:s3ioN E XP,
R ES 1 -31.00
RATE INFORMATION
Lowest classified rate paid by commercial users for comparable space ......... $11.00 per column inch
Maximum rate allowed bylaw for the above matter ............. .........................$11. per column inch
Rate actually charged for die above matter ......................... ..........................$7.67 per column inch
City Council Meeting - September 23, 1996
Councilman Mason: Second.
Mayor Chmiel moved, Councilman Mason seconded to approve the construction plans and specifications for
Villages on the Ponds, Phase I dated September 16, 1996, prepared by BRW, Inc. and the PUD /Development
contract dated September 23, 1996, subject to the following conditions:
The applicant enter into the development contract and supply the City with a cash escrow or letter of credit in
the amount of $1,076,000.00 and pay an administration fee of $106,905.00.
2. The applicant's engineer shall work with city staff in revising the construction plans to meet city standards.
All voted in favor and the motion carried unanimously.
Mayor Chmiel: Mark, I'm going to move items (g), (h) and 0) to item 13. Is there anyone here for any of those
items? Okay, if not we'll move along with the agenda.
VISITOR PRESENTATION: STEVE OLINGER, CHASKA/CHANHASSEN HOCKEY ASSOCIATION.
(CCHA), ICE ARENA IN CHANHASSEN.
Public Present:
Name
Joe P. 1000 Lake Susan Hills Drive
Amy Erickson
Mark Austo
Brad H.
Chad Sullivan
Elizabeth Pinnell
Brian & Marge R.
Layton & Linda Zellman
Lynn Clemends
Bryan and Peter McGovern
Dave Erickson
Ken Knutson
Ray R.
Stan Schwarz
Brian Johnson
Ed Garden 764 Ashley Drive, Chaska
Rick Jackson
Address
7090 Pimlico Lane
15980 Dutoit Road, Carver
7280 Cactus Curve
577 Concord Drive, Chaska
P.O. Box 5, Chanhassen
1281 Hillside Circle, Chaska
2290 Timberwood Drive
8699 Mary Jane Circle
900 Penamint Court
520 Pineview Court
645 Dresden Drive
60 Lake Drive East
2674 Spring Lake Road, Shakopee
2000 Scarborough Court, Chaska
8646 Chan Hills Drive
Mayor Chmiel: Todd, do you wish to say something?
Todd Hoffman: Sure can. I'd like to introduce Steve Olinger, the President of the Hockey Association.
Mayor Chmiel: I hope you're as fast as he is.
Steve Olinger: Mr. Mayor, members of the City Council. First I'd like to thank you for bringing this to the table. I
think there is a unique opportunity here to combine the efforts of city government, private individuals and private
business in trying to do something for the children of this community, and that is to build a partly funded hockey
arena. We're in desperate need of ice. There's a severe ice shortage at this time, and this is the only way that we
have been able to see that we can, and we can build in a short period of time. We believe it's a unique opportunity to
combine business and private individuals and the city in something that ... the children. We did a study and we found
2
City Council Meeting - September 23, 1996
the only way to do it is each one of these entities holds a piece of the puzzle and the piece that the city holds is a
parcel of land that we could use. If we can get that, we're confident that we can put together the rest of the pieces of
the puzzle to make this arena happen. I will now yield to Randy Mueller who is the Chairman of the ice arena task
force. I do want to say that, this not only counts for the children of Chanhassen but also Chaska, Victoria, and
Carver and even Minnetonka. I received a letter this morning from the President of the Minnetonka Hockey
Association and it reads as follows. Dear Chanhassen City Council. On behalf of the Minnetonka Youth Hockey
Association I would like to give our support for the building of a new ice arena in Chanhassen. MHYA has shared a
co- relationship with Chaska /Chanhassen Hockey Association... As part of this relationship, CCHA will make
available 300 to 500 hours of ice time in it's new arena to MHYA skaters. MHYA in return is willing to commit to
using these hours for the foreseeable future, helping to ensure that the new arena will be utilized at full capacity. We
hope the Chanhassen City Council will give it's support ... for our youth. Sincerely, Matt Thompson, President,
Minnetonka Youth Hockey Association. So you see this isn't just for the children here. It's for the children of half a
dozen communities around here. And we're just coming to ask that the city contribute the land for this so that we
can do the rest of the work... So right now I'll yield to Randy Mueller. A year ago I commissioned a ice arena task
force and Randy was the Chairman of that and he'll give his presentation and you can ask all your questions of him.
Thank you for your time.
Mayor Chmiel: Okay, thank you.
Randy Mueller: Mayor and Council. Right now one of my colleagues, Mark Ekloh who also served on the task
force, to help me here in the presentation. The presentation that we're going to give to you is the same presentation
that we gave to the CCHA Board on May 6 °i and it really represents the findings of our task force, as well as our
recommendations and I'd like to be able to spend a few moments with you to go through some of those findings.
First of all, it's hard to read I know, but we were sanctioned and charged by the CCHA ... task force to really go out
and search getting as much information and as much data as possible just to find out exactly what kind of situation
the CCHA was in. Not only in meeting the needs of our youth but also vis a vis, our competition in District 6. For
those of you that don't know, District 6 is one of the most, if not the most competitive districts in the State of
Minnesota where we compete against the likes of Apple Valley, Bloomington Jefferson, Burnsville and others.
...compare their quality of ice time because they do have available ice versus what we're able to offer our kids. So
we did have a mission statement that we operated on. We had a lot of significant volunteers from the association that
are participating in the task force and we're please to show you our results from those. From that task force.
Basically on the next slide here, history in time that I'd like you to walk through. This is not something that
happened overnight. As Steve mentioned, really the task force was formed probably about a year ago and Steve
and ... Board have been working on this problem for some time and this history time line that you see here basically
says that we've been working this issue and problem for some time, and it probably came to a critical head last
winter when what I call the ice disadvantage really kicked in. A lot of parents were upset due to the fact that they
weren't getting the quality of ice necessary, not only to compete in District 6 but a lot of the kids in our program
quite honestly were relegated to outdoor ice for their practice times and as you all know last winter was a very
difficult winter for all of us. Very cold. Poor weather conditions and the type of weather we had last winter wrecks
havoc on outdoor ice. I've got my son skated on a Squirt C team last year. Had one outdoor practice last January
because the conditions were so bad. So the quality of ice is very, very important to our program. And... because it's
such a team oriented sport, we need to have ice. We need to have the kids playing together in order to enhance their
skills and be competitive in this program. Some of our findings basically, and here's some of the facts. Due to the
growth in the community, and one thing that we're pretty proud of. This area is growing quite substantially. The
Chaska, Chan, Victoria, Carver, Minnetonka area. People are moving to this community to live here for the same
reasons we live here. And therefore they're bringing with them kids that want to get involved in hockey. So due to
the growth of the community. The existing indoor ice facility just will not be meeting it. It's not meeting it now and
will not meet it in the future. I also want to emphasize, we're here representing the CCHA and our focus is on
hockey but there are other interests for the community at large, including figure skating clubs and other open skate
that are very important to the entire community. Basically we're asking the, and our total participants who will go at
61 % until 1999, year 2000 and I think that's a conservative estimate. If one of this goes to District # 112 and looks at
the number of kids and what we ... that particular school district, which we're all a part of, you'll know it's supposed
to grow and the challenges that grow it's causing all of us. The biggest growth is going to occur, for those that are
not familiar with hockey, are going to occur at one of the senior levels. Bantam and Pee Wee. Bantam and Pee Wee
V
City Council Meeting - September 23, 1996
is where our kids really kick into developing advanced hockey skills. Therefore they require more ice. Therefore we
have this group of kids coming up through the program that are already at an ice disadvantage. At a time when they
need even more ice, it's not available. And we have a number of the coaches here that support the Bantam and Pee
Wee programs and they'll agree and contest to the fact that... in order to be competitive. Our total estimated indoor
ice arena requirements will grow by 236% by the same year, 1999, year 2000. By the way, for those that don't
know. Our showcase arena, our only arena that we have right now is at the Chaska Community Center. One sheet of
ice. There is no ice available from the surrounding communities. They have none for sale and I think Steve
mentioned, Minnetonka will gladly purchase ice from us if they have an arena to purchase ice from. I mean their
demands for ice has also grown astronomically here so. Another key finding, we currently do not support the midget
or girls program. For those that don't know, the midget program are for those players that probably cannot compete
at the high school level but yet there's a lot of kids that want to still play hockey and skate and we don't have a
midget program now. We give this whole, the task force findings and why we sat on this task force is to encourage
participation and growth. We also do not have a girls program, which is an issue for us. Currently the girls within
our community, if they want to skate competitively, they participate in Eden Prairie. Eden Prairie likewise has a
similar problem with ice. Who knows what will happen in the future. Whether they'll support the girls of our
community to even have a girls program. So finally I kind of beat this up to death but again, outdoor ice is just not a
suitable alternative. I know a lot of people may think, well just flood an outdoor rink or get another outdoor rink. It
just does not work. The potential for injury exists, especially when these kids are flying at high speeds and trying to
playing a competitive game like this, it just won't work. But more importantly, just the weather extremes dictates a
very short season, if a season at all. I mentioned earlier that right now we believe from our findings, and this is
supported by some of the work we did, talking to some of the other programs in District 6, that our program was at a
disadvantage due to the lack of ice. Several of these programs, and you can look at the state champions. You know
Apple Valley, Bloomington Jefferson, and others that are in our district, I mean they're producing state champions
because they have multiple sheets of ice, which means they have more opportunities for kids to practice and
participate. The ice ... of 96 -97, when we started on this process, hopefully with the idea that we could find some
land so we could start the process to build an arena for this season. I think what's going to happen is the pains of last
year are only going to be worse this year. We've been unsuccessful thus far in finding that piece of land. That's why
we're here. And maybe we can minimize the pain by telling people it's coming maybe in the next year. It won't
happen this year obviously. We can't find ice from other associations. I mentioned that earlier. One thing that I
also want to highlight is that hockey in Minnesota is a very big deal. There are some significant economic benefits to
this community. If we had our own arena we could sponsor hockey tournaments or figure skating club type of
events. Charge admissions. The benefits associated with those types of tournaments is significant. Motel, gas, food,
clothing, you name it. People spend money when they go to hockey tournaments. We're not reaping those benefits
like other communities in our district. We appreciate in our findings again all of the communities that have
participated with us. Of course Chanhassen. Also other cities like Chaska and Victoria also have expressed an
interest in helping, but you've been generous in your time you've spent with us. Therefore our recommendations, I
think you're one slide ahead of me here Mark but, our recommendations are that we have made as a task force,
through the CCHA Board, that we need to build another ice arena. We're estimating right now that the cost of the
arena will be anywhere from $1 million to $1.5 million. Owned and operated by the CCHA. Financed through the
CCHA and we hope to be creative in some of our financing, as well as other participation from businesses in the
community and individuals. We believe the key to make this work, and to make the economics work of course is to
have the land. I mean without it, none of this will work. It's going to require multiple community participation in
the process. The fact that we can apply for again to be part of a tax free status, under Minnesota 501C, helps the
economics work in this situation. And another thing is we, more importantly have a vested interest in an asset that
will be with us for some time. And we can therefore derive full ... of ice. One of the disadvantages of course of
owning a facility like this, that the CCHA recommends, is that we need to have strong management running the ice
arena to make sure that we do optimize, completely use the ice, including the sale of ice to other communities, as
well as addressing some of our own needs. And it may require some of the people within the CCHA securing a loan
and assuming some of the financial risk, but we believe we can address both of those disadvantages in this case. Our
next findings. We're talking about an arena that basically is going to be usable 6 to 7 months during the year. We
will be focused on that practice facility. We're not looking at building an alternative to the community center. A
very nice looking facility. It still is our showcase arena. We are looking for a facility that is quite usable during the
crunch period of time when we need it, like beginning here in the next month. The remainder of the year we're
basically suggesting that the building be closed down. The economics from our ... don't support having a second
11
City Council Meeting - September 23, 1996
sheet of ice in this community during the summer months. Now we can discuss alternative uses of the building but to
invest the dollars required to have a second sheet of ice during the summer months, we don't see it at this time. Of
course we believe something like this, our focus is on youth participation because it's a great opportunity for having
multiple communities, that we service, to make it all work and we're really like your support and business
participation. We do plan on hopefully, if we do get the piece of land, we are hoping that our CCHA steps up with
volunteer labor to work. We have a number of people skilled in the trades that can help offset some of the costs
associated with putting this building together. It will be a challenge for our association and that's why we're here
tonight. I think we're up to the task. I do want to put up just some of the analysis and the data and I did give a copy
of this to Todd, or a handout for your reference. The very first slide that I do have is the CCHA required ice time per
team by level and basically I want to draw your attention. The red is what we had available because of the one sheet
of ice. The green is what we need, and that's where we're at right now. And again as you add more people and more
youth and more participation, you can imagine the dramatic impact. The next slide basically shows the impact by
adding additional teams, and it's hard to read this right now but we don't have a JV program right now. We don't
have a midget program. We don't have a girls program, and we do expect significant on the bantam, pee wee and
squirt levels. The next slide is our projected total of participants. We're still accumulating the information regarding
this hockey season. The number of participants we're going to have but you can kind of see, as a total growth, and
we believe this is conservative going from 360, or there about in 1995, last hockey season, to over 600 by the year
1999 -2000 hockey season. This next chart probably hits home the growth by participants per level for those in
hockey. You can see there is a big growth in the youth that are coming up through the program. I mean this is like a
tidal wave or what I like to say, a large pig going through a small snake because you've got all these kids coming and
we have no ice. Exactly what I see here and I don't know how the snake is going to open up wide enough to
consume the pig.
Councilman Mason: That's a new one on me.
Randy Mueller: Next slide Mark. This basically I think per their abilities to challenge again one just needs to
analyze. The red being, here's where we're at as of last year, '95 -'96 by level and you'll see already in the turquoise
'96 -'97 hockey season, the significant disadvantage that we already have. Anyway, summarizing all of the data.
Basically we had 601 hours to work with last hockey season. This hockey season, if we would have had our arena, I
mean basically to meet status quo to be competitive in this district, we need to double the ice hours and we don't
have it so it's going to be discouraging to a lot of parents. We're concerned that it may discourage additional
participation at a time when we need to encourage participation. And the last slide I do have is basically the pain
associated with what caused basically the reaction within our association to call a special meeting which I think was
what precipitated why the task force was founded to begin with. It's very visible that we just don't have the ice
to ... so that's all I have. I have a lot more detail that goes behind this information. More than willing to share any of
this analysis with you in further detail. Thank you for your time. Any questions you may have'?
Mayor Chmiel: Okay. Council have any questions?
Councilman Berquist: Not right now.
Mayor Chmiel: Colleen.
Councilwoman Dockendorf: Are we going to be discussing this at a future time? How do you want to handle visitor
presentation?
Mayor Chmiel: Well I think the question should come forth at this particular time.
Councilwoman Dockendorf: A couple questions, if you don't mind, for Todd. Have you talked lately with the land
group with...?
Todd Hoffman: Not lately, no.
Councilwoman Dockendorf: Not lately.
5
City Council Meeting - September 23, 1996
Todd Hoffman: Not for months
Councilwoman Dockendorf: What do you think the reality of her plans moving forward, and I'm speaking to, there's
a piece of property right across the road in fact where there's been some suggestions of an ice arena as part of a
larger sports complex.
Todd Hoffman: I couldn't offer...
Councilwoman Dockendorf: Oh really? Okay.
Todd Hoffman: I don't want to say it's a long shot or we're hopeful but I think... I believe she has spent as much
time with the City Council as of late as she has with staff...
Councilwoman Dockendorf: Have you determined...
Todd Hoffman: The HRA received those reports, that report and you have a copy of it on Thursday night but it still
requires about, anywhere from 6 to 9 feet of excavation and then compaction as part of the construction. The
majority of the, the most significant soil corrections need to take place on the building pad. That 6 to 9 feet. 3 to 6
feet of excavation underneath the parking area.
Councilwoman Dockendorf: Is there adequate parking in that area for that use?
Todd Hoffman: Yes there is. Yeah, we did a preliminary site plan and that's what we based the soil borings on.
Councilwoman Dockendorf. And if the land is muck, or excavated and filled, what's the estimated market value of
that piece of land?
Todd Hoffman: The lots 5 and 6, although they're just over 1 l acres. Those of you who are familiar with it,
Highway 5 is to the north and Paisley Park is located here and the trees really stretch on this westerly side of the
property, and that's a nice barrier from the industrial park. Then there's a wetland which comes up out of Lot 4 that
stretches into Lot 5. Something like this configuration. There's also some wetlands in the back of the property.
Additional trees on this side so what we're talking about is this center area for construction. So even though there's
some open ground, the lots are still limited in the extent of development that could occur.
Mayor Chmiel: Any other?
Councilwoman Dockendorf: If your... is that just on the building and the soil corrections? No, that's all for me.
Mayor ChmieL Michael.
Councilman Mason: This would be for the CCHA Todd. You talked a little bit about managing the facility. How,
as a City Council person, let's just say I'm real concerned down the road that you might have some trouble with
management. I'm just throwing that out. I mean how do you see that happening? Are you going to contract that
out? Do you have people that are capable of doing that? And if you do have people that are capable of doing it,
what happens when their kids leave CCHA?
Mark Ekloh: I'm Mark Ekloh and I'm part of the Board here in terms of helping to get this thing going. Basically
the management of hockey arenas is an undergraduate program in the State of Minnesota. There are a number of
community colleges that offer it and most of the arenas in the Twin Cities are operated on a management basis where
there is a full time employee that is employed for 6 months of the year who operates the facility. Has part time help
in terns of local kids running the zambonis. Working at the concession stands, etc, etc. Those people, there are
degree people. The best example would probably be Blake High School has one. Eden Prairie obviously has city
employees operating their facility, but there are a number of, Hastings. There are a number of facilities and rinks,
City Council Meeting - September 23, 1996
Apple Valley, that have private individuals that they hire that work. It seems that it's a compliment to people who do
golf course work. So a lot of people that are the maintenance and people that run golf courses in the summer time,
turn out to be hockey arena managers in the winter time so they have that 6 months that they can do one or the other
so it seems that the intention of the association would not to be to have the association directly involved. There
would be a Board of Directors so to speak. We haven't decided... but this has just been in our discussions that
there's too many disadvantages to members being directly involved and it's much more important to have a
professional manage on the staff. Actually operating the facility so that's what we would envision. The other
important part of having a manager and a professional staff operating it, and where we see that as, first of all the
important thing when you build an arena is we want the arena to be used as much as possible. 100% of the time. So
that person then becomes kind of a neutral individual. He sells hours to both Minnetonka, Eden Prairie, to Chaska,
whoever needs it and makes sure that it gets utilized. He's also the person that structures the tournaments and there
again in a hockey association or in a local rink, normally you'll see tournaments run at least on a monthly basis, if
not on a bi- weekly type basis. That brings more money into the association and also probably as importantly, it
brings a lot of people into the community, both in terms of staying overnight, eating, so on and so forth so it's a big
fund raiser, not only for the association but for the community as well. And we would envision this facility being
used on that basis too. That we want to have tournaments there and raise money for the association and we think that
would benefit the community as well.
Councilman Mason: Thanks. That's it.
Mayor Chmiel: Mark.
Councilman Senn: For the hockey association again. Your approach is commendable as it relates to doing the
private fund raising on the building and the parking, and the soil correction, etc, okay. I guess what I need to
understand is, we all know the piece of land we're talking about. What do you really want to do'? Do you want a 99
year lease for a dollar? Are you looking for simply getting the property over? Can you be more specific in terms of
what you're looking to the city for?
Steve Olinger: We would like to purchase it for a dollar. That would be part of our...
Councilman Senn: Okay, so you need the underlying fee ownership'?
Steve Olinger: Yes.
Councilman Senn: All right.
Mayor Chmiel: Okay, Steve. Did you have'?
Councilman Berquist: Well I had a couple of questions, one of which was exactly that. From a lender point of view,
the CCHA has to own the parcel? Forgive me for sounding like a cynic but if the parcel were sold for a greatly
reduced dollar amount, and looking down the road 15 to 20 years from now, there was a decline in hockey or what
have you and the citizenry matures and they don't have any youth playing it anymore and the CCHA has this nice
hockey rink or building that can be used for something else. And now it's on the market. I'd like to see something
in there for protection of the city. I don't know how it could be done. Question for Todd and Todd is, how much.
That land was gotten as a result of tax forfeiture, right?
Todd Gerhardt: No ... delinquent or for the meeting of special assessments on the property which was about
$176,000.00.
Councilman Berquist: 176. Okay. And the CCHA is a non - profit, non -tax paying organization, right? Okay. So
currently we've got about $180,000.00 into it, give and take soil borings and a thousand bucks for preliminary design
with KKE. That kind of stuff. All right. I'd love to see it happen. I really hope this thing is able to get done. I
think this, given our previous conversations, you know I'm in support of it. Actually it's hard to say, go hell bent
7
City Council Meeting - September 23, 1996
for ... based on four soil borings, but I would certainly hope that you can make the thing go and I wish you well. I do
have questions regarding ownership of the land and protection of the city. I think that's all I've got.
Mayor Chmiel: Okay, thank you. Yeah. Would you like to come to the microphone please?
Mark Ekloh: Steve, can I ask you just a specific question? Just so I make sure we understand in terms of our
discussion in trying to meet your needs as well. Protection of what? The financial investment that the city's made
or?
Councilman Berquist: The City has spent obviously, you know thousand and thousands of dollars to provide
recreation opportunities for youth and adults in all of the facilities, to the best of my knowledge, are community
owned. This would be the first one that would not be community owned and the City would have no recourse for the
dollars, in essence, donated. So that's just something that needs to be worked out. I'm certain that it can be.
Mark Ekloh: Okay. I just wanted to make sure I understood.
Councilman Senn: You know Mark, maybe a different way to look at it would be if you sell it 20 years down the
road, maybe the City would like to recoup it's $200,000.00 investment or something like that.
Mark Ekloh: Something like that, I understand. I just wanted to know if it was a financial issue that the city wanted
to make sure it protected or if it was a concern about something else so I appreciate that.
Councilwoman Dockendorf: Can I...?
Mayor Chmiel: Yeah, go ahead.
Councilwoman Dockendorf: I'm curious as to how your 5010 ... would be affected if you do start renting it out.
Does that affect your status as a non - profit? Or is it just a matter of looking at the books and if you're just breaking
even?
Steve Olinger: Yes...
Mark Ekloh: The other thing is the State Legislature 3 years ago, and we can get the Council a copy of that. Three
years ago was kind enough to pass legislation that allowed 501C3 corporations to own their own arenas and rent
them out and stuff like that and it was blessed by the boys over at the State of Minnesota.
Councilman Senn: Was that Mighty Duck legislation stuff?
Mark Ekloh: No, actually it was prior to that and then the Mighty Ducks followed after that, but there was actually
legislation that approved associations to own their own arenas and blessed the 501C3 status and there are a number
of arenas that are currently owned under that already in the State.
Councilman Senn: Does that same legislation then protect you on property taxes on the same basis?
Mark Ekloh: Yep. Yep. Yep. Makes it a non - profit, non - taxable scenario.
Mayor Chmiel: Good.
Todd Hoffman: Mayor, I think if I'd like to work towards a close so you can get onto your other agenda items. I'd
like to let Roger go ahead, I think he can get our hooks into the property in some fashion.
Roger Knutson: Yes. Mayor, if I could just make a comment on Councilman Berquist's concerns. Those concerns
can be dealt with in the documentation on restrictions on the use and things like that so that can be easily dealt with.
City Council Meeting - September 23, 1996
Todd Hoffman: Specifically the association has met twice with the HRA. In May and then last Thursday evening.
The HRA gave the project it's blessing. Obviously they wanted to see the input from the City Council. That's why
the association is here this evening. Assistant City Manager Gerhardt recommended to the HRA that a task force be
formed if this received the Council's blessing this evening, for a Council member and member of the HRA,
association members, staff members from the different parties, to study the uses and take a look at the other alternate
uses which would then no longer be viable on the property and then to initiate the planning and review process on
this as a whole so that's where we are this evening. Again if you see fit, I would recommend that you go ahead and
initiate that task force formation.
Mayor Chmiel: Okay. All right. We have a couple things then to look at. Is to form the task force in itself. Do you
have a question before that?
Councilman Senn: Yeah, if I could Don. In relationship to forming a task force, it seems to me that that becomes a
working group effectively to put this proposal together. I think before we do that we should simply schedule this
item on a future meeting. Set a public hearing effectively with the concept that the city will provide the land for the
situation and get past that point before we get into effectively a plan for implementation. And I think that could be
done fairly quickly and having it then, it seems to me the next logical step is then to put together that task force to
work towards implementation of the deal but I think first you've got to kind of get the preliminary stuff.
Mayor Chmiel: They've indicated they can't do anything with that rink this year to have it ready that quickly so I
think there's time limitations there that allow us sufficient time to go through that particular process. But I wouldn't
want to see this bogged down in any way. I would like to probably see that probably all take place within, do you
think take all this together within the next month?
Todd Hoffman: Yeah I think the, even though it's going to be next year, they have a lot of construction things and
site plan reviews and those type of things to take a look at so, we talked about a maximum two months review
process I think...
Councilwoman Dockendorf: You're not planning on surcharging the soil at all? So you don't need to get in there
yet this year?
Todd Hoffman: No, no.
Steve Olinger: If we could get some sort of a commitment in a short period of time. We can begin negotiations with
corporations who have expressed interest in helping us out. I don't want to go any further with those negotiations
until we know that we've got the land so I ask you.
Councilman Senn: Yeah, I think it's easier for us to give you that commitment, but I mean the first step is kind of
holding the public hearing and making sure that everybody's aware of it. And then if they're aware of it, then I think
we can give you whatever you want in terms of a blessing or whatever. I mean that's a vote that would be taken and
then beyond that you can go.
Councilman Mason: Can we do that public hearing two weeks from now? Put it on the agenda.
Don Ashworth: I think so.
Councilman Senn: Yeah, maybe get the newspaper to do a little article on it or something so people know about it.
Don Ashworth: Yeah. The only question really would be the hearing notice. But I think we can. Making the
assumption of say that it would be in for next Thursday. Not this Thursday. Next Thursday.
Councilman Mason: 7 to 10 days, isn't it?
City Council Meeting - September 23, 1996
Don Ashworth: But there's no real requirements. If that's acceptable to the City Council because then it would,
you'd be notifying people literally 3 -4 days in advance. If your next meeting would be two weeks from today.
Councilwoman Dockendorf: Are the surrounding property owners already aware of this discussion at all?
Mayor Chmiel: Yeah Charles.
Charles Folch: I believe the next Council meeting is three weeks from tonight.
Mayor Chmiel: You're right. There are three weeks.
Councilman Mason: Way to go Charles. Well then I'd like to see that on the next Council agenda. Public hearing
for this.
Mayor Chmiel: All right, we can do that.
Todd Gerhardt: Mr. Mayor?
Mayor Chmiel: Yes.
Todd Gerhardt: I don't want to pour water on the fire here. There have been other parties that have looked at this
site for other interests. Compost site. Future public works expansion. And my recommendation to the HRA was to
go through those priorities so that we can start the future planning of some of those locations, if you wish to see that
on the site. But that was my recommendation to the HRA. To try to prioritize the uses for that site and kind of
weigh out what's the best advantage, or the advantage the community would have...
Mayor Chmiel: Okay. So with that, maybe we can get some additional information back from HRA is what you're
saying, or are you looking at public works to come up with some solutions as to the basic needs that they're looking
at too?
Todd Gerhardt: I want to get a group together to prioritize the uses for that site. Evaluating it as a hockey site.
Evaluating it as a potential public works expansion site. Evaluating it as a compost site. And then go through some
type of priority process identifying what the best use of that site would be. And not anticipating that it would take
that long to do.
Councilman Senn: Can you do that by next meetin
Mayor Chmiel: Can you get that done in 3 weeks?
Kate Aanenson: No. I don't think so.
Todd Gerhardt: I would hope we could get some kind of preliminary analysis done by that time.
Mayor Chmiel: Okay. Maybe if we can go on that particular process. Did you have a problem Kate?
Kate Aanenson: Well I think Todd's right. I think there's other competing interests. That's why the
recommendation came forward to do the task force because now we're holding a public hearing based solely on this
and I think there's other interests, city interests on this piece of property. We want to make sure that we went
through a fair evaluation on that before we acquiesce the rights on that. Not to say that's not the best use of that but
we want to go through that process. There are some other interests, city uses that we need space for. So that's why
Todd's recommendation was, and the staff department heads talked about it. We felt the best way was to give us a
little bit of time to try to go through that process internally before we gave up on ... so when you said the public
hearing in 3 weeks, that wouldn't give us really, I'm not sure enough time to go through that process.
10
City Council Meeting - September 23, 1996
Councilman Senn: Well I misunderstood on Todd's end because when you were suggesting a task force, I thought
you were being specific as it relates to this proposal. For the member of the Council and the HRA included on the
task force you said. Now are we talking two different things here?
Todd Hoffman: No, it's two different interpretations. ...recommendation that came out of the HRA was to form a
task force to look at all the issues and the variety of uses and that evening we talked about the members that would
be on there. We had staff members and HRA and City Council so everyone could keep up to speed. This piece of
property has been kicked around for years and we've talked about soccer fields. It also happens to be the underpass
location, the trail underpass location for the future Lake Ann Park underpass. That occurs on the east side of the
property. Public works is currently using it as a temporary stockpile site so it's a public issue as to, and perhaps you
can go so far as to hold a public hearing on constructing an ice arena there... Assistant City Manager Gerhardt's
asking that that the other interests on a city wide level get their crack at the property as well.
Councilman Senn: Well I assume that would happen on the public hearing process but I think more from a context, I
mean if we're going to follow that procedure, which is fine. This would be a lot more than a two month process. I
mean you're not going to put together a task force. Study all those issues. Produce a finding and bring it back to
HRA, City Council. Schedule a public hearing and everything like that in a month. Right?
Todd Hoffman: That is an in -depth process, you're correct. Like I say, it all depends on what the, who forms that
task force and what they put into it. If Council's got some direction in that regard, we're willing to take it. You may
have opinions as well about the best use of the property that staff would be interested in hearing.
Councilwoman Dockendorf: So you've already tentatively selected that task force members?
Todd Hoffman: No, we have not. We've just talked about what bodies it would be coming from
Councilman Senn: What is that?
Todd Hoffman: HRA. City Council. Hockey Association. Assistant City Manager Gerhardt. Planning staff
member. Park and Rec staff member.
Councilman Senn: Well, I'm sorry. I'm confused again. I mean it seems to me then that that's a group you're
putting together effectively over an ice arena proposal. Where's your people from public works? Where's your
people from, you know that are interested in using it for composting or soccer fields or whatever. See I'm hearing
two different things.
Todd Hoffman: Leave the hockey association out of it. Put your Public Works Director in there. I represent soccer.
Planning represents compost facility.
Councilman Senn: I don't think you need Council or HRA in it. I mean I think you guys ought to go put something
together and bring it into us.
Todd Hoffman: We'd be glad to do that.
Mayor Chmiel: I think that would be much simpler. With that direction for staff to move in that particular way. I
would think so.
Todd Hoffman: Will allow Assistant Manager Gerhardt to go ahead and formalize that and if it's prudent to put the
public hearing on in 3 weeks, we'll do that. If it's not, we'll postpone it another week.
Mayor Chmiel: As Todd mentioned, if he can have some preliminary kind of information from their input.
Councilman Mason: If at all possible I'd like to see it in 3 weeks. I do also understand the limitations of staff and
how much work they do.
11
City Council Meeting - September 23, 1996
Mayor Chmiel: Okay. Thank you. Go ahead.
Steve Olinger: I'd like to thank the City Council for taking this under consideration. I know that it's a complicated
issue and it's something that could be a political football but thank you for keeping an open mind on this. This
whole process began last spring when the Mayor... myself, members of the School District from Chaska, and ... part
of Chanhassen. He brought us all together and with the understanding that Chanhassen needs an ice arena. The
communities around us does not have that and this is an opportunity for Chanhassen to get an ice arena without
having to finance it. With having to just merely give us the land. It's a very generous offer. But it would be the only
privately financed arena in this area and that's something that Chanhassen can be proud of also. Along with the
hockey association, so please keep that in mind. Thank you.
Mayor Chmiel: Good, appreciate it. All right, we'll move to the next item which is item number 3.
PUBLIC HEARING: ASSESSMENT HEARING FOR LAKE RILEY AREA TRUNK UTILITIES PHASE I
PROJECT NO. 93 -32A.
Public Present:
Name
Wayne Holtmeier
Betty Ann Clark
Bud & Marian Paulson
Al Klingelhutz
Anita Beal 562 Mission Hills Way W.
Address
8524 Great Plains Blvd.
8522 Great Plains Blvd.
8528 Great Plains Blvd.
8600 Great Plains Blvd.
Alicia Keane 566 Mission Hills Way W.
Mayor Chmiel called the public hearing to order.
Charles Folch: Thank you Mr. Mayor, members of Council. We have our project engineer with us tonight to give
you a presentation, the final data and information regarding this improvement project. Following his presentation I'd
like to summarize some information from a number of appeals that we received and then turn it back over to City
Council for a formal hearing. With that, Dave Mitchell from OSM.
Dave Mitchell: Thanks Charles. Mr. Mayor, members of Council. I'm going to try to make this brief and get
through this rather quickly. I'd like to start off with just briefly going through what was included originally in Phase
I of the project. Primarily it was the watermain highlighted in red. As you very well know, this is part of a much
larger project that's currently being constructed this summer. This area was constructed in '94 -`95. There was also
a small part of the sanitary sewer that was installed by the developer of Mission Hills up to the south portion of
the... property which is in this general area. Due to some ... that came up with this parcel of land down here, this
particular piece of watermain was not installed, but will be installed at a future date once development of that
property begins. What we're here for tonight is the assessment hearing for Phase I. This next slide shows the
assessment area. Primarily the area being assessed for Phase I of the project includes the single family homes along
the south side of Lake Susan, the Mission Hills development, Tigua Lane, and a couple other large parcel properties
on the north side of Mission Hills as well as a portion of the At Klingelhutz farm on the south side of TH 101.
We've got approximately 134 properties enrolled with this particular assessment. Some project summaries,
financing and project costs. The total construction cost for the project, Phase I, was $300,925.90. Engineering,
administrative and legal costs totaled $89,747.97. Slightly less than 30% of the construction cost, which is well
within normal ranges that we strive for. Easement acquisition for this particular phase cost the city $15,013.85 for a
total project cost of $405,687.72. Project funding down below shows a total project cost again of $405,687.72.
Proposed present assessments are $553,263.00 with the additional assessments being paid and future hook -up
charges. Again that's in the future when the other areas develop of $150,350.00. A footnote to the proposed
assessments. Over the project cost, you'll note that the anticipated revenues generated by the assessments exceeds
12
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
IN FWN S►G
TO: Don Ashworth, City Manager
FROM: Todd Hoffman, Park & Recreation Director
DATE: September 18, 1996
SUBJ: Visitor Presentation, Steve Olinger, Chaska /Chanhassen
Hockey Association (CCHA), An Ice Arena in Chanhassen
Mr. Steve Olinger, President of CCHA will be present at Monday evening's City Council
meeting. It is Mr. Olinger's intent to make a presentation to the City Council in regard to
the potential of constructing an ice arena in Chanhassen. The hockey association is
seeking the Council's input on this proposal. I estimate this presentation will take 30
minutes.
The association is also appearing before the HRA (the owner of the property in question)
on Thursday evening, September 19 (a copy of the report being presented to the HRA is
attached).
c: Park and Recreation Commission
Planning Commission
Todd Gerhardt, Assistant City Manager
Kate Aanenson, Planning Director
Charles Folch, City Engineer
Scott Harr, Public Safety Director
Steve Olinger, CCHA
Bob Kost, BRW
g: \park \t h ` is earena. me m
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO: Housing & Redevelopment Authority I
FROM: Todd Hoffman, Park & Recreation Director ----v
DATE: September 13, 1996
SUBJ: Presentation of Preliminary Geo- Technical Evaluation for HRA Property; Lots 5
& 6, Chanhassen Lakes Business Park P Addition (Proposed Ice Arena); Receive
HRA Guidance on Subsequent Proceedings
On May 16, 1996, the HRA authorized the preparation of a Geo - Technical evaluation report
(soils study) for the aforementioned property. Braun Intertec has completed this work based on
preliminary site plan work previously authored by BRW, Inc. Representatives of Braun Intertec
and BRW will be present next Thursday evening both to address the HRA and answer questions.
Representatives of the CCHA (hockey association) will also be present. The hockey association
will be appearing before the city council on Monday, September 23 during Visitor Presentations.
Staff awaits the HRA's guidance regarding this proposal.
Attachments
1. Preliminary Geo- Technical'Evaluation.
2. Report to the HRA dated May 7, 1996.
3. HRA Minutes dated May 16, 1996.
4. Site Plan Alternatives A & B
c:
Mayor and City Council
Park & Recreation Commission
Planning Commission
Don Ashworth, City Manager
Todd Gerhardt, Assistant City Manager
Kate Aanenson, Planning Director
Charles Folch, City Engineer
Scott Harr, Public Safety Director
Steve Olinger, CCHA
Bob Kost, BRW, Inc (agenda included)
Bruce Thorson, Braun Intertec(agenda
included)
gApark\th\geotechnica1.e
CITY OF `!
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Todd Hoffman, Park & Recreation Director
DATE: May 7, 1996
SUBJ: Construction of an Indoor Ice Arena, Chaska/Chanhassen Hockey Association
The Chaska/Chanhassen Hockey Association (CCHA) is seeking to construct an ice arena by the
end of the year. The Association has been exploring potential locations in Chaska, Victoria and
Chanhassen. Both Mayor Chmiel, Councilman Berquist and others have inquired about the
appropriateness of Lots 5 and 6, Chanhassen Lakes Business Park 5th Addition. These lots are
currently the property of the Housing and Redevelopment Authority (HRA).
The attached letter addressed to Mr. Steve Olinger, the President of the CCHA, has been
reviewed by the Association's committee working on this project. Mr. Olinger and/or other
members of the committee will be present at your May 16 meeting to elaborate on their plans.
Would the HRA be willing to lease /sell Lots 5 and 6 or a portion thereof to the CCHA for the
purpose of constructing an indoor ice arena? If so, would you consider a price of $1 for a 50 -100
year lease? Unbuildable soils have prohibited the development of these two lots to date. Would
the HRA consider assisting the Association with soil corrections?
As I stated in my letter to Mr. Olinger, the extent of soil corrections is a "big" wild and in this
entire scenario. Our inquiries with the previous owner (Opus Corporation) has only substantiated
our speculation that a large percentage of the open land in Lots 5 and 6 is "bottomless." Records
of past soil exploration studies have not yet been located. If records cannot be located or if soil
borings were never completed, does the HRA wish to commission a soils survey?
The construction of an ice arena would provide recreation for our community, act as a gathering
point, and bring additional commerce to town. If Lots 5 and 6 do not work out, is the HRA
interested in seeing another location pursued?
The Association and I look forward to discussing this issue with you on the 16th.
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A Preliminary Geotechnical Evaluation Report
for BRW, Inc.
Proposed Chanhassen Ice Arena
Park Place
Chanhassen, Minnesota
Project BABX -96 -549
August 22, 1996
Braun Intertec Corporation
BRAUNS"
I NTE RTEC
August 22, 1996
Mr. Bob Kost, ASLA
BRW, Inc.
Thresher Square
700 3rd Street South
Minneapolis, MN 55415
Dear Mr. Kost:
►aun Intertec Corporation
6801 Washington Avenue South
P.O. Box 39108
Minneapolis, Minnesota 55439 -0108
612 -941 -5600 Fax: 9414151
Engineers and Scientists Serving
the Built and Natural Environments'
Project BABX -96 -549
Re: Preliminary Geotechnical Evaluation for the Proposed Chanhassen Ice Arena, Park
Place, Chanhassen, Minnesota
We have completed the preliminary geotechnical evaluation for the proposed Chanhassen Ice
Arena on Park Place in Chanhassen, Minnesota. The purpose of the evaluation was to assist
you and other members of the design team in comparing the two sites and in preparing
preliminary designs for foundations, slabs and pavements. The evaluation was completed in
general accordance with our proposal to you dated July 10, 1996, authorized by you on
July 12, 1996.
Summary of Results
Four standard penetration soil borings were performed, two at each of the two proposed ice
arena locations. Borings ST -1 and ST -2 were performed at the Alternative A location and
Borings ST -3 and ST-4 were performed at the Alternative B location. The borings encountered
I to 4 feet of topsoil overlying natural soils with the exception of Boring ST -3 which
encountered 6 1/2 feet of fill over natural soils. The natural soils consisted of predominantly
clayey sand and sandy lean clay with layers of silty sand and sandy silt. Consistencies ranged
from rather soft near the surface to stiff at depth. Groundwater was encountered at depths of
2 to 7 feet below the surface at the time of drilling and 4 to 5 1/2 feet below the surface twenty
days after drilling.
Summary of Analyses and Recommendations
The soil conditions encountered at the two locations were similar, with Boring ST -2 having the
shallowest depth of soft soils. It appears that soil conditions should be considered a minor
factor when comparing the two sites.
It is our opinion that the topsoil, existing fill and soft clays would not provide adequate support
for the proposed arena. We recommend removing the topsoil, fill and soft/loose soils to an
approximate depth of 6 1/2 to 9 feet below the surface. The excavation should be backfilled in
a controlled manner. The excavated soils will probably be too wet to reuse as backfill and fill.
Imported backfill and fill will likely be required.
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 2
After the excavation and backfilling has been completed, it is our opinion that the proposed
building be supported with typical spread footings sized to exert a maximum net allowable soil
bearing pressure up to 3,000 pounds per square foot.
In the pavement areas, topsoil should be removed to at least 2 feet below the bottom of the
pavement in parking area, and 3 feet below the bottom of the pavement in truck and drive
areas. Some subexcavation of soft sandy lean clays may also be required. It will likely be
necessary to import granular backfill and fill for the pavement subgrade, unless drying weather
is available during subgrade preparation.
Additional Exploration
Once the location of the proposed arena has been decided, we recommend additional borings to
further define the required depths of excavation and backfill. The preliminary analyses and
recommendations of this report should also be reviewed.
General
Please refer to the attached report for a more detailed summary of our analyses and
recommendations. If we can provide additional assistance or observation and testing services
during construction, please call Matt Ruble at (612) 942 -4821 or Loren Braun at
(612) 942 -4817.
Sincerely,
Matthew P. Ruble
Staff Engineer
Bruce M. Thorson, PE
Principal /Senior Engineer
Attachment:
Preliminary Geotechnical Evaluation Report
mpr \bmt:mj s \babx\georpt \96549
Table of Contents
Description Page
A. Introduction ................ ............................... I
A .1. Project ............. ............................... 1
A.2. Purpose ............ ............................... 1
A .3. Scope .............. ............................... 1
A.4. Available Information .... ............................... 2
A.5. Locations ........... ............................... 2
B. Results ................... ............................... 2
B.1. Logs .............. ............................... 2
B.2. Soils .............. ............................... 2
B.3. Groundwater ......... ............................... 3
B.4. Laboratory Tests ....... ............................... 3
C. Analyses and Recommendations ... ............................... 3
C.1. Proposed Construction ... ............................... 3
C.2. Discussion ........... ............................... 4
C.3. Building Pad Preparation .. ............................... 5
C.3.a. Excavation 5
C.3.b. Dewatering .... ............................... 5
C.3-c. Backfill and Fill 5
C.3.d. Backfill and Fill Placement and Compaction .............. 6
C.4. Foundations .......... ............................... 6
C.4.a. Allowable Bearing Pressure ......................... 6
C.4.b. Frost Protection 6
1Q.4.c. Settlement Estimates 6
C.S. Floor Slabs .......... ............................... 6
C.5.a. Subgrade Compaction ............................ 6
C.5.b. Vapor Retarder or Barrier .......................... 6
C.5.c. Modulus of Reaction 7
C-5-d- Expansion Joints .......................... 7
C.6. Exterior Slabs ........ ............................... 7
C.6.a. Subgrades ... ............................... 7
C.6-b. Frost Protection 7
C.7. Utilities ........... ............................... 8
C.7.a. Subgrades ..... ............................... 8
C.7.b. Dewatering .... ............................... 8
C.7.c. Bedding ...... ............................... 8
C.7.d. Backfill . ............................... 8
C.8. Pavements ........... ............................... 8
C.9. Additional Exploration ... ............................... 9
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 2
Table of Contents (Continued)
Description
Page
D. Construction ............... ............................... 9
D.1. Observations ......... ............................... 9
D .2. Testing ............. ............................... 10
D.3. Proofroll ............ ............................... 10
DA. Cold Weather ......... ............................... 10
E . Procedures .................. ............................... 10
E.1. Drilling and Sampling ... ............................... 10
E.2. Soil Classification ...... ............................... 11
E.3. Groundwater Observations . ............................... 11
F. General Recommendations ....... ............................... 11
F.I. Basis of Preliminary Recommendations ........................ 11
F.2. Review of Design ...... ............................... 12
F.3. Groundwater Fluctuations . ............................... 12
F.4. Use of Report ......... ............................... 12
F.S. Level of Care ......... ............................... 13
Professional Certification
Appendix
Boring Location Sketch
Descriptive Terminology
Log of Boring Sheets
BRAUN
INTERTEC
A. Introduction
Braun Intertec LOT011nan
A801 Washington Avenue South
J. Box 39108
Minneapolis, Minnesota 55439 -0108
612- 941 -5600 Fax: 941 -4151
Engineers and Scientists Serving
the Built and Natural Environments'
A.I. Project
BRW, Inc., is designing an ice arena on Park Place in Chanhassen, Minnesota. Two
alternative locations are being studied.
A.2. Purpose
The purpose of this preliminary geotechnical evaluation is to assist BRW and other members of
the project team in comparing the two alternative sites and in preparing preliminary designs of
foundations, slabs and pavements.
A.3. Scope proposal to
Our services were performed Mr. Kost authorized us r 9
to proceed July 12 our scope o services
Mr. Bob Kost of BRW
was limited to the following items.
• Staking the boring locations and determining ground surface elevations at the boring
locations.
• Coordinating the locating of underground utilities near our boring locations.
• Conducting four penetration test borings to a depth of 20 feet in the proposed building
areas. -
• Returning the samples to our laboratory for visual classification and logging by a
geotechnical engineer.
• Conducting a limited laboratory test program to assist in estimating soil properties or
conditions.
i
• Submitting a preliminary geotechnical evaluation report containing logs of the borings,
our analysis of the field and laboratory tests, and recommendations for earthwork,
spread footing foundations and pavements.
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 2
A.4. Available Information
We were provided with a plan titled "Chanhassen Park Place Ice Arena, Site Plan
Alternative A," and a plan titled "Chanhassen Park Place Ice Arena, Site Plan Alternative B."
These plans were produced by BRW. They were not dated and were hand - drawn. The
locations of the proposed ice arena and borings were shown on the plans.
A.5. Locations
The borings were located in the field by our drilling crew using the apparent property lines for
reference. Boring elevations were determined by the drilling crew using the top nut of the fire
hydrant located on Park Place cul-de -sac with an assumed elevation of 150.0.
B. Results
B.1. Logs
Log of Boring sheets indicating the depths and identifications of the various soil strata,
penetration resistances, laboratory test data and groundwater observations are attached. The
strata changes were inferred from the changes in the penetration test samples and auger
cuttings. The depths shown as changes between the strata are only approximate. The changes
are likely transitions and the depths of the changes vary between the borings.
Geologic origins presented for each stratum on the Log of Boring sheets are based on the soil
types, blows per foot, and available common knowledge of the depositional history of the site.
Because of the complex glacial and post - glacial depositional environments, geologic origins can
be difficult to ascertain. A detailed investigation of the geologic history of the site was not
performed.
B.2. Soils
Borings ST -1 and ST -2 were performed at the Alternative A location and Borings ST -3 and
ST-4 were performed at the Alternative B location. The borings encountered 1 to 4 feet of
clayey sand and sandy lean clay topsoil overlying natural soils with the exception of Boring
ST -3. Boring ST -3 encountered 6 1/2 feet of sandy lean clay, clayey sand, silty sand and
poorly graded sand fill overlying natural soils. The natural soils primarily consisted of clayey
sand and sandy lean clay with layers of silty sand and sandy silt.
Project BABX -96 -549
August 22, 1996
Page 3
The penetration resistance of the fill and topsoil varied from 4 to 6 blows per foot (BPF). The
penetration resistances of the clayey soils varied from 4 to 21 BPF, indicating they ranged from
rather soft at shallow depths to very stiff at depth. The penetration resistances of the natural
sands and silts varied from 8 to 18 BPF, indicating they were loose to medium dense.
B.3. Groundwater
Groundwater was observed at a depth of 2 to 7 feet below the surface elevation immediately
after withdrawal of the auger with the exception of Boring ST-4. Groundwater was not
encountered in Boring ST-4 immediately after withdrawal of the auger. Groundwater was
observed 4 to 5 1/2 feet below the surface 20 days after withdrawal of the auger at all of the
boring locations.
Due to the relatively impermeable nature of the soils, the hydrostatic groundwater level can be
difficult to determine. The water observed may have been perched on the clay soils as a result
of surface run -off or precipitation from rains. However, due to similar elevations between the
swamp and marsh area located southwest of the borings and the groundwater elevations, the
20-day observations likely represent the hydrostatic groundwater level. These depths
represented elevations (on our assumed datum) ranging from 138 1/2 at Boring ST -1 to 142 at
Boring ST -3. Seasonal and annual fluctuations of the groundwater level should be anticipated.
B.4. Laboratory Tests
Two tests were performed to evaluate the moisture contents of the natural clay and fill soils
encountered. These tests determined that the samples tested had moisture contents of 21 to
37 percent. -This indicated they were wet to very wet of their optimum moisture contents.
C. Analyses and Recommendations
C.I. Proposed Construction
BRW is preparing preliminary designs for an ice arena on Park Place in Chanhassen,
Minnesota. Based on our conversation with Mr. Bob Kost, we anticipate the finished floor
elevation will be 1/2 to 1 foot above the existing surface elevation, or about elevation 146 on
our datum at Site A, and elevation 147 at Site B. We have assumed there will be no
below -grade (basement or crawl space) spaces.
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 4
For the purpose of this report and without final load values, we have assumed that perimeter
wall footings will not exceed 5 kips per linear foot and column loads will not exceed 100 kips
per linear foot. We assume that distributed floor loads will be less than 250 pounds per square
foot (psf) and concentrated floor loads will be less than 1,000 psf. We assume that the parking
area will be used by light - weight trucks (pickups and cars). We assumed the truck and drive
areas will not be used by more than one fully loaded delivery or garbage vehicle per day.
We have assumed the floor system for the ice sheet will consist of a slab with refrigerant pipes
over a layer of insulation underlain by a granular layer with a heating system to prevent frost
from penetrating into the subgrade. A perimeter drain system is included to collect water from
melting ice sheets. We have also assumed that the floor area around the ice sheet will be
heated continuously during the winter.
If the proposed loads exceed these values, if the proposed grades differ by more than 1 foot
from the assumed grades, if the design location of the proposed arena changes, or if the arena
will not be heated during the winter, we should be informed. Additional analyses and revised
recommendations may be necessary.
C.2. Discussion
The borings encountered relatively thick topsoil and rather soft clays to depths of 6 1/2 to
9 feet. It is our opinion these soils are too soft to satisfactorily support foundations and slabs.
We recommend removing these materials and replacing them with compacted backfill.
Surcharging of the soft clay soils was considered but would not greatly reduce the amount of
clay that could be left in place. Surcharging would also require a large construction delay
which may be impractical.
The soil conditions encountered at the two locations were similar, with Boring ST -2 having the
shallowest depth of soft soils. It appears that soil conditions should be considered a minor
factor when comparing the two sites.
A swamp and marsh area is located south and west of the proposed arena location. The ground
surface elevations at the borings are slightly above the marsh and swamp elevations. The water
encountered at the boring locations may be perched on the clay materials but it is likely the
water levels are near the hydrostatic groundwater levels due to the similar elevations. We
0
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 5
anticipate the water will be encountered during excavation but will not enter the excavation in
large quantities or rapid velocities due to the relatively impermeable nature of the encountered
soils.
C.3. Building Pad Preparation
C3.a. Excavation. We recommend removing the topsoil, fill and soft clay. See Table 1
below for the approximate recommended excavation depths.
Table 1. Approximate Depths of Excavation
Approximate
Recommended Excavation
Depth (feet)
7
7 `
9 �
9
Approximate Bottom
Of Excavation
Elevation*
137
138
137 1
137 1/2 I
x The boring elevations were determined by our drilling crew using the top nut of the
hydrant on the Park Place cul-de -sac as a reference with an assumed elevation of 150.0.
The excavation should be oversized. The recommended criteria for oversizing is 1 foot of
lateral excavation for each foot of fill placed below foundations. Oversizing the excavation will
provide lateral stability to the foundations.
C3.b. Dewatering. Based on the borings it is anticipated and recommended that sump pumps
be used to remove water from the excavation. Care should be taken to prevent disturbance of
the excavation bottom soils by construction equipment.
C-3-c. Backfill and Fill. Gravel, sand, silt or clay with a plastic index less than 25 may be
used to backfill the excavation. Sand or sandy gravel are the preferred materials. We
anticipate the excavated nonorganic lean clays will be too wet to be reused as backfill unless
they can be spread and dried. Because the bottom of the excavation will be wet, we
Approximate Surface
Boring
Elevation*
ST -1
I 144
ST -2
145
ST -3
146
ST-4
1461/2
Approximate
Recommended Excavation
Depth (feet)
7
7 `
9 �
9
Approximate Bottom
Of Excavation
Elevation*
137
138
137 1
137 1/2 I
x The boring elevations were determined by our drilling crew using the top nut of the
hydrant on the Park Place cul-de -sac as a reference with an assumed elevation of 150.0.
The excavation should be oversized. The recommended criteria for oversizing is 1 foot of
lateral excavation for each foot of fill placed below foundations. Oversizing the excavation will
provide lateral stability to the foundations.
C3.b. Dewatering. Based on the borings it is anticipated and recommended that sump pumps
be used to remove water from the excavation. Care should be taken to prevent disturbance of
the excavation bottom soils by construction equipment.
C-3-c. Backfill and Fill. Gravel, sand, silt or clay with a plastic index less than 25 may be
used to backfill the excavation. Sand or sandy gravel are the preferred materials. We
anticipate the excavated nonorganic lean clays will be too wet to be reused as backfill unless
they can be spread and dried. Because the bottom of the excavation will be wet, we
AW, Inc.
Project BABX -96 -549
August 22, 1996
Page 6
recommend the initial 2 feet of backfill on the bottom of the excavation consist of a clean sand
with less than 50 percent by weight passing the number 40 sieve and less 5 percent by weight
passing a 200 sieve.
C.3.d. Backfill and Fill Placement and Compaction. Backfill and fill should be placed in
8- to 12 -inch thick lifts and compacted with a large vibratory compactor. Backfill should be
compacted to a minimum of 97 percent of its maximum dry density determined in accordance
with American Society for Testing and Materials (ASTM) Test Method D 698 (standard
Proctor).
C.4. Foundations
C.4.a. Allowable Bearing Pressure. Once the building pad is prepared as recommended
above, we recommend footings be sized to exert a maximum soil bearing pressure of 3,000 psf.
CA.b. Frost Protection. We recommend perimeter footings be placed a minimum of
3 1/2 feet below the adjacent exterior grade to provide adequate frost protection.
CA.c. Settlement Estimates. We estimate total and differential settlement of the foundations
will be less than 1 inch and 1/2 inch, respectively, under the assumed loads.
C.S. Floor Slabs
C.S.a. Subgrade Compaction. Fill material placed below floor slabs and in interior utility
trenches should be compacted to a minimum of 97 percent of its standard maximum Proctor dry
density. Fill should be placed in 8- to 12 -inch thick lifts.
C.S.b. Vapor Retarder or Barrier. The insulation will serve as a vapor retarder for the ice
sheet floor. For the remaining floors, we recommend a vapor retarder or barrier be placed
beneath the slab if floor coverings or coatings less permeable than the slabs will be used.
Industry standards suggest covering the retarder or barrier with a layer of sand, but this
practice risks trapping water between the slab and vapor retarder or barrier.
August 22, 1996
Page 7
C.S.C. Modulus of Reaction. If sand fill is used, it is our opinion that a modulus of subgrade
reaction, k, of 250 pounds per square inch per inch of deflection (pci) may be used to design
the floor. If clay fill is used, we recommend it be covered with a minimum of 6 inches of road
base aggregate and a modulus of subgrade reaction of 100 pci be used to design the floor.
C.5-d- Expansion Joints. We recommend an expansion joint be provided around the
perimeter of the refrigerated ice sheet floor slab, separating it from the remaining floor slab
area. The thickness of this expansion joint should beat least 3/4 inch.
CA Exterior Slabs
C.6.a. Subgrades. We recommend topsoils be removed from beneath the proposed slabs.
Fills and backfills should be compacted to a minimum of 95 percent of their standard Proctor
maximum dry densities.
C.6-b. Frost Protection. Lean clays are frost - susceptible soils. If these soils become
saturated and freeze, 1 to 2 inches of heave may occur. This heave can be a nuisance for slabs
or steps in front of doors and at other critical grade areas. One way to reduce this heave is to
remove the frost - susceptible soils down to bottom -of- footing level and replace them with
nonfrost - susceptible sand or sandy gravel. Sand or sandy gravel with less than 5 percent of the
particles by weight passing a number 200 sieve is nonfrost- susceptible.
If this approach is used, we recommend a drain pipe be installed to remove any water that may
collect in the sand or sandy gravel. The bottom of the subexcavation should be graded so the
water flows to the center where it can be collected by the pipe and drained to a storm sewer,
another drain tile, or a water collector system for discharge.
An alternative method of reducing frost heave is to place a minimum of 2 inches of extruded
Polystyrene foam insulation beneath the slabs and extending about 4 feet beyond the slabs. The
insulation will reduce frost penetration into the underlying subgrade and thereby reduce heave.
Six to 12 inches of granular material is generally placed over the insulation to protect it during
construction.
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 8
C.7. Utilities
C.7.a. Subgrades. Trench bottoms shallower than 6 1/2 to 9 feet will have rather soft topsoil
or clay bottoms. It may be necessary to subcut 1/2 to 2 feet and backfill with stabilizing
aggregate to provide stable trench bottoms.
C.7.b. Dewatering. Groundwater will likely enter trenches extending more than 4 to
5 1/2 feet below the existing ground surface. We anticipate the trenches can be dewatered with
sumps and pumps located in the sides of the trenches, or from within the stabilizing aggregate.
C.7.c. Bedding. It is our opinion the on -site materials will not provide suitable bedding for
utility conduits. It will be necessary to import granular bedding for utility conduits.
C.M. Backfill. We recommend the backfill placed in exterior utility trenches be free of
vegetation and roots and have an organic content of not more than 10 percent. We recommend
fill placed in utility trenches under parking areas have an organic content of not more than
5 percent. Fill material placed within the upper 3 feet of the pavement section should be placed
according to the procedures discussed in the following section.
Fill material placed in utility trenches in green areas should be compacted to a minimum of
90 percent of its standard Proctor maximum dry density. In building and pavement areas,
compaction criteria for the respective area should be followed. Excavated site soils will likely
be too wet to use as backfill beneath the building and pavement areas, unless they can be
spread and dried. Imported backfill will likely be required.
C.8. Pavements
We recommend removing the topsoil, fill and soft material to 2 feet below the bottom of the
pavement in parking areas and 3 feet below the bottom of the pavement in truck and drive
areas. (The bottom of the recommended gravel base should be considered the bottom of the
pavement.) The resulting surface should be scarified to a depth of 6 inches and compacted to a
minimum of 95 percent of its standard Proctor maximum dry density. Drying weather will be
necessary to achieve this compaction.
Backfill and fill placed below parking areas should have an organic content of less than
5 percent. Fill placed within the upper 2 feet of the subgrade should consist of a clean
imported sand with not more than 5 percent by weight passing the number 200 sieve and not
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 9
more than 50 percent by weight passing a number 40 sieve. The pavement section should
consist of a 1 1/2 -inch thick bituminous wearing course, 1 1/2 -inch thick bituminous base
course, and a 4 -inch thick aggregate base.
Backfill and fill placed below truck and drive areas should have an organic content of not more
than 5 percent. Fill material placed within the upper 3 feet of the subgrade should be a clean
sand. The pavement section should consist of a 1 1/2 -inch thick bituminous wearing course,
1 1/2 -inch thick bituminous base course, and a 6 -inch thick aggregate base.
Fill placed within the upper 2 feet of parking areas and the upper 3 feet of truck and drive
areas should be compacted to a minimum of 100 percent of the standard Proctor maximum dr
density. Backfill and fill material placed more than 3 feet below the parking and drive areas
should be compacted to a minimum of 95 percent of its standard Proctor maximum dry density.
If the scarified subgrade is unstable, a geotextile should be placed below the clean sand. The
elevations of the bottoms of the sand layers should be designed to provide drainage of water
entering the sand. Drain tile may be needed to accomplish the drainage. Water should be
routed to a sump and then drained by a pump or gravity to a storm sewer or low area of the
site.
C.9. Additional Exploration
Once the location of the proposed arena has been decided, we recommend additional borings to
further define the required depths of excavation and backfill. The preliminary analyses and
recommendations of this report should also be reviewed.
D. Construction
D.1. Observations
We recommend all excavation, footing, slab and pavement subgrades be observed by a
geotechnical engineer or a geotechnical engineering technician under the direction of a
geotechnical engineer to evaluate if the subgrade soils are similar to those encountered by the
borings and adequate to support the proposed construction. Oversize of excavatio
perimeter footing grades should be checked. These observations ns below
should be conducted prior to
placing backfills, fills or forms for footings.
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 10
D.2. Testing
m
We recommend density tests of backfills and fills placed beneath footings, slabs and pavements.
We also recommend density testing of the compacted pavement subgrade and gravel base
course. Samples of proposed backfill and fill materials should be submitted to our testing
laboratory at least three days prior to placement for evaluation of their suitability and
determination of their optimum moisture contents and maximum dry densities.
m
D.3. Proofroll
As a final check subsequent to placement of the aggregate base, we recommend that the entire
roadway be proofrolled. This precautionary measure will assist in detecting localized soft
spots. Any soft spots noted during the proofrolling process may require additional subcuts. A
qualified geotechnical engineer should observe the proofrolling process to make a final
evaluation of the subgrade.
DA Cold Weather
If site grading and construction is anticipated during cold weather, we recommend that good
winter construction practices be observed. All snow and ice should be removed from cut and
fill areas prior to additional grading. No fill should be placed on soils which have frozen or
contain frozen material. No frozen soils should be used as fill.
Concrete delivered to the site should meet the temperature requirements of ASTM C 94.
Concrete should not be placed upon frozen soils or soils which contain frozen material.
Concrete should be protected from freezing until the necessary strength is attained. Frost
should not be permitted to penetrate below footings bearing on frost - susceptible soil since such
freezing could heave and crack the footings and /or foundation walls.
E. Procedures
E.1. Drilling and Sampling
The penetration test borings were performed on July 23, 1996, with a core and auger drill
equipped with 3 1/4 -inch inside diameter hollow -stem auger mounted on an all- terrain vehicle.
Sampling for the borings was conducted in general accordance with ASTM D 1586,
"Penetration Test and Split - Barrel Sampling of Soils." Using this method, the borehole was
advanced with the hollow -stem auger to the desired test depth. A 140 -pound hammer falling
30 inches was then used to drive the standard 2 -inch split - barrel sampler a total penetration of
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 11
1 1/2 feet below the tip of the hollow -stem auger. The blows for the last foot of penetration
were recorded and are an index of soil strength characteristics. Samples were taken at
2 1/2 -foot vertical intervals to the 15 -foot depth and then at 5 -foot intervals to the termination
depths of the borings. A representative portion of each sample was then sealed in a glass jar.
E.2. Soil Classification
Soils encountered in the borings were visually and manually classified in the field by the crew
chief in general accordance with ASTM D 2488, "Description and Identification of Soils
(Visual -Manual Procedures)." A summary of the ASTM classification system is attached. All
samples were then returned to our laboratory for review of the field classifications by a
geotechnical engineer. Representative samples will remain in our Minneapolis office for a
period of 60 days to be available for your examination.
E.3. Groundwater Observations
Immediately after taking the final samples in the bottoms of the borings, the holes were probed
through the hollow -stem auger to check for the presence of groundwater. Immediately after
withdrawal of the auger, the holes were again probed and the depths to water or cave -ins were
noted. The borings were rechecked for the presence of groundwater 20 days after withdrawal
of the auger.
F. General Recommendations
F.1. Basis of Preliminary Recommendations
The preliminary analyses and recommendations submitted in this report are based upon the data
obtained from the soil borings performed at the locations indicated on the attached sketch.
Variations occur between these borings, the nature and extent of which will not become evident
until additional exploration or construction is conducted. A reevaluation of the
recommendations of this report should be made after performing on -site observations during
construction and noting the characteristics of the variations. The variations may result in
additional foundation costs, and it is suggested a contingency be provided for this purpose.
To permit correlation of the soil data obtained to date with the actual soil conditions
encountered during construction and to provide continuing professional responsibility for the
conformance of the construction to the concepts originally contemplated in this report and to the
plans and specifications, it is recommended we be retained to develop and perform the
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 12
recommended observation and testing program for the excavation and foundation phases of the
project.
If others perform the recommended observations and /or testing of construction, professional
responsibility becomes divided since, in doing so, they assume responsibility for evaluating that
the soil conditions throughout the construction areas are similar to those encountered in the
borings or recognizing variations which require a change in recommendations.
F.2. Review of Design
This report is based on the preliminary design of the proposed structure as submitted to us for
the preparation of this report. Because of the limited amount of information available, a
number of assumptions were necessary to permit us to make recommendations. It is
recommended we be retained to review the final design and specifications to determine whether
those assumptions were correct and whether any change in concept may have had an effect on
the validity of our recommendations, and whether our recommendations have been implemented
in the design and specifications. If we are not permitted an opportunity to make this
recommended review, we will not be liable for losses arising out of incorrect assumptions,
design changes, or misinterpretation or misapplication of our recommendations.
F.3. Groundwater Fluctuations
Water level readings have been made in the borings at the times and under the conditions stated
on the boring logs. These data have been reviewed and interpretations made in the text of this
report. However, it must be noted the period of observation was relatively short and that
fluctuations in the groundwater level may occur due to rainfall, flooding, irrigation, spring
thaw, drainage, seasonal and annual variations and other factors not evident at the time
measurements were made and reported herein. Design drawings and specifications and
construction planning should recognize the possibilities of variations.
F.4. Use of Report
This report is for the exclusive use of the addressee and the copied parties to use to design the
proposed structure and prepare construction documents. In the absence of our written
approval, we make no representation and assume no responsibility to other parties regarding
this report. The data, analyses and recommendations may not be appropriate for other
structures or purposes. We recommend parties contemplating other structures or purposes
contact us.
BRW, Inc.
Project BABX -96 -549
August 22, 1996
Page 13
F.5. Level of Care
Services performed by Braun Intertec Corporation personnel for this project have been
conducted with that level of care and skill ordinarily exercised by members of the profession
currently practicing in this area under similar budget and time restraints. No warranty,
expressed or implied, is made.
Report Prepared By:
`UA-C�e�P 1
Matthew P. Ruble
Staff Engineer
Professional Certification
I hereby certify that this report was prepared under my
direct supervision and that I am a duly Registered
Professional Engineer under the laws of the State of
Minnesota.
Bruce M. Thorson, PE
Principal /Senior Engineer
Registration Number: 10376
Appendix
I
PPP RO
PR
� I .
= = � == ____� =
. . ,
III
Hi
I
I"
4
BRAUN"
INTERTEC
CHANHASSEN PARK PLACE ICE ARENA
ALTERNATIVE "A"
SOIL BORING LOCATION SKETCH
GEOTECHNICAL EVALUATION
PROPOSED ICE ARENA
CHANHASSEN. MINNESOTA
.,
` I�
EXISTING
L CUL -DE -SAC
100' 0 zoo'
SCALE 1" -200'
INT REVISION ISHEET'
DRAWN BY: GMG 08 -14 -96
APP'D Br: LWB 1 08 -14 -96 IOF
JOB NO. BABX -96 -549
DWG. NO. AB6549 FIGURE NO.
SCALE 1 "- 200'
.
I ..
f--------
- - - - --
.ii
ICE
ARENA
A,
S 1
= = � == ____� =
. . ,
III
Hi
I
I"
4
BRAUN"
INTERTEC
CHANHASSEN PARK PLACE ICE ARENA
ALTERNATIVE "A"
SOIL BORING LOCATION SKETCH
GEOTECHNICAL EVALUATION
PROPOSED ICE ARENA
CHANHASSEN. MINNESOTA
.,
` I�
EXISTING
L CUL -DE -SAC
100' 0 zoo'
SCALE 1" -200'
INT REVISION ISHEET'
DRAWN BY: GMG 08 -14 -96
APP'D Br: LWB 1 08 -14 -96 IOF
JOB NO. BABX -96 -549
DWG. NO. AB6549 FIGURE NO.
SCALE 1 "- 200'
PPR rrR . -- � • •
I P
I III ST -4
ST-3 '
-
I �
y'
4
BRAUION
INTERTk
CHANHASSEN PARK PLACE ICE ARENA
ALTERNATIVE 'B^
SOIL BORING LOCATION SKETCH
GEOTECHNICAL EVALUATION
CHANHASS N I
100' 0 200'
SCALE 1" =200'
INT I REVISION ,SHEET
DRANN er: CMG 08 - 14 -961
Aar'D er: LWB 108- 14 -96JDF
doe No. BABX -96 -549 I
Owo. NO A86549 IFICURE N0.
SCALE 1 "
C scriptive Termino: gy
1
10 Designation D 2487 -83
Standard Test Method for
CLASSIFICATION OF SOILS FOR ENGINEERING PURPOSES
CRITERIA FOR ASSIGNING GROUP SYMBOLS AND
GROUP NAMES USING LABORATORY TESTS
c o
GRAVELS
CLEAN GRAVELS I C n / and
SYMBOL
More than 50% of
Le u than S% fine,'
C, < / and /a I s. C, >• 3
p .e g
: •'s
cote» froaion
retained an
GRAVELS WIFH FINES
Fine, clo,si(y as Ml or MH
Z
7( 8
Na. / ,iev.
Mae l M 12X Rnn•
Fines sdassiy as CL or CH
W a
SANDS
CLEW SANDS
C. L 6 ad 1 1 C. S 3
Or -E Z
SO% or man of
Ives iron SX RM, •
C < 6 ad /a I u C. s• 3 •
O e
g
cove F Po••••
SANDS WITH FINES
' Fines clauiy as ML or MH
U
No. / sieve
More dsan 12% Rne • I Fines classify as CL Orr CH
Fa day •'-
MH
PI � 7 and piols on or above 'A Rne'
r, -£
SILTS AND CLAYS
liquid limn
r^Og°nrc
% < I or plop bebw'A' rave r
T:
a .
-
lees than SO%
organic Uquid limit - oven dried <0.75
e
9 (
Liquid limit -not dri
Q
s,2 E c
PI pbn on or Dhow 'A' FM
'S `o Z
SILTS AND CLAYS
Inorganic PI below 'A' line
? u
Liquid Rme
50%orm re
organic Liquid limit - even dried <075
Liquid limit - not dried
OH Organic dry •"•r
Organic Pk Lu•
Hiahiv amcmic sods Primonly organic manor, dark in color, and oroanic odor PT Peat
SOIL CLASSIFICATION
GROUP
OC
SYMBOL
GROUP NAME•
GW
Wellgeosd gravel r
GP
Poorly graded gravel
GM
&by gravel '••
GC
Clayey gavel r••
SW
Wellgoded sand-
SP
Poodygrad•d,asd'
SM
SRry sand —
SC
Clayny,atd••'
a
tean cloy
ML
&k .
OL
Organic day •+•••
Pocket Penetrometer Strength, tsf
Organic sib W
CM
Fa day •'-
MH
Elaac alt —
u toed on the .~at pose rg the Sun (75vm1 sieve.
Is. 46.1d sample untamed cobbles and /or bovl l• , odd • wren cobbles ow /a boukiori so Torp nom•.
s. Gravels wet 5 a 12% fills rogw.< dud symbols.
GW GM "IlkToded gravel wak ult
GWLC weRyredd gavel with clay
GPGOR Poorly graded gavel wren pit
GPGC poeriy graded gravel with clay
L Saws wr6 S a 12% fins, regvrn dual symbols.
SWSM wellgmd•d send wide uR
SWSC w•Rgaded Bond wak day
SPSM p••rty graded sand wr6 Pb
SPSC Pool graded sand with clay
a C, -DdJ)o C,. ID -1
D ,,, n D.
r. R.1comma 3I S% sand. odd•with sod' to govp nomo.
R. R fins, clou as CIML, use dual symbol GCGM. SCSM,
L R fin" an orgomc, add'wdh ogaaw haei se gaup name.
L i soJ aoesar" 11 S% gavel, Odd',voh gravel' se gaup Mao
1. 0 Aneaog lima plot m hachcl area. sal u a CLML, uky cloy.
L R saJ asera" 15 es 29% ples No. 200, add'wrd sand' or'wnh goner wh ohener a pwaamrnent.
L N awl atataro o 30% plat No. 200, pmdomieen6y sand, odd'wndyr to Tarp Mme.
a i tad conbms; 30% plu No. 200, prdommomit gravel, add'govelly' to gave Mme.
•. A 2 / and plan on or above "A' lane.
•. PI c 1 a plea below 'A' line.
p. N pea on or obovo'A' Gee.
�. :I pee bds..'A' M..
60
For =and Rcaio I f Fi nn /
OC
50
OR
S
6
Eawrian d•AViw
Horisentd or PI./ to LL.25.S.
Sj
SG
r
thou PIA 73111.20)
+J/
C
Cohesion, psf
PL
nvfv;,�:X
fed
?
Eaves im of v' FM
wmcdaLL_le
C"
qu
`
/
then PL_o.v lust /
C� /
qp
V �
g z, • / n�
CL
i Oi' ARFI a OH
/ 0. I
10
7 •-- M ML c t OL
/
a
0 10 le 20 30 /0 50 60 70 go 90 100 1.0
LIQUID LIMIT (LL))
LABORATORY TESTS
DD
Dry Density, pcf
OC
Organic Content, %
`ND
Wet Density, pcf
S
Percent of Saturation, %
MC
Natural Moisture Content, %
SG
Specific Gravity
LL
liquid limit, %
C
Cohesion, psf
PL
Plastic limit, %
fed
Angle of Internal Friction
PI
Plasticity Index, %
qu
Unconfined Compressive StrengA, psf
P200
% Passing 200 Sieve
qp
Pocket Penetrometer Strength, tsf
PARTICLE SIZE IDENTIFICATION
Boulders ............................ over 12'
Cobbles ............................. 3' to 12'
Gravel
Coarse ........................... 314• -3•
Fine ............................... No. 4 -314'
Sand
C oarse ........................... No. 4—No. 10
Medium .......................... No. 10—No. 40
Fine ............................... No. 40 —No. 201
Silt ..... ............................... No. 200—.005,
Cloy ... ............................... less than .005 msr
RELATIVE DENSITY OF
COHENSIONLESS SOILS
very loose ............ ............................... 0-4
loose ................. ............................... 5 -10
medium dense .. ............................... 11--30
dense .............. ............................... 31 -50
very dense ............. ............................... 50+
CONSISTENCY OF COHESIVE SOILS
verysoft .............. ............................... 0 -1
soft ..................... ............................... 2-3
rather soft ............ ............................... 4 -5
medium ............... ............................... 6 -8
rather stiff .......... ............................... 9 -12
stiff ................. ............................... 13 -16
very stiff .......... ............................... 17 -30
hard ...................... ............................... 30+
DRILLING NOTES
Standard penetration test borings were advanced by
3 1 /4' or 6 1 /4' ID hollow -stem augers unless noted other
wise. Jetting water was used to clean out auger prior to
sampling only where indicated on logs. Standard penetrai
test borings are designated by the prefix 'ST* (Split Tube).
Power auger borings were advanced by 4' or 6' diameter
continuousAite, solid stem augers. Soil classification and s
depths are inferred from disturbed samples vugered to the
surface and are, therefore, somewhat approximate. Powe,
auger borings are designated by the prefix W.
Hand probings were advanced manually with a 1 1/2'
diameter probe and are limited to the depth from which th=
Probe con be manually withdrawn. Hand probings are
Indicated by the prefix W.
SAMPLING: All samples are token with the standard 2' 1
split sampler, except where noted. TW indicates thin -
(undisturbed) sample.
BPF: Numbers indicate blows ear foot recorded in stand
penetration test also known as N' value. The sampler is
6' into undisturbed soil below the hollow -stem auger. Driv
resistances are then counted for second and third 6' increr,
and added to get BPF. Where they differ significan the,
reported in the Following form -2/ 12 for the secan and i
6 increments, respectively.
WH: WH indicates the sompler penetrated soil under we;
of hammer and rods alone, driving not required.
WR: WR indicates the sampler penetrated soil under wei-
rods alone, hammer weight and driving not required.
NOTE: All tests run in general accordance with opplicobl
ASTM standards.
BRAUN`"
I NTE RTEC
LOG OF BORING
PROJECT: BABX - 96-549 BORING STA
GEOTECIINICAL EVALUATION LOCATION:
Proposed Chanhassen Ice Arena Locations
Park Place See attached sketch
Chanhassen, Minnesota
DRILLER: M. McWilliams ' METHOD: 3 1/4' HSA SW. Hmr. DATE: 7/23/96 I SCALE: V-4'
Elev. Depth ASTM
144.2 0.0 Symbol Description of Materials BPF WL Tests or Notes
SC // CLAYEY SAND, fine - to medium - grained, with Elevation Reference: The
= f . fine GRAVEL, black to dark brown, wet. reference used for the boring
(Topsoil) elevations was the top nut of
- 6 the hydeant at the cul -de -sac
' Sz_ on Park Place with an assumed
140.2 4.0 elevations of 150.0.
CL SANDY LEAN CLAY, with fine GRAVEL and ,
strata and layers of Silty Sand and Poorly Graded 4 qu = 1.0 tsf
Sand with Silt, brown mottled with gray and dark = MC = 3496
- 137.7 6.5 j brown, wet, rather soft to medium. -
SM \ (Glacial Till)
SILTY SAND, fine - to medium - grained, with fine 8
GRAVEL, grayish brown, wet to waterbearing,
135.2 9.0 loose.
CL \ (Glacial Outwash) 7 x
— SANDY LEAN CLAY, with lenses of Silty Sand — 12 MC 2 Its
- and Poorly Graded Sand with Silt, grayish brown to -
dark gray mottled with brown and reddish brown,
j j wet, rather stiff to stiff.
(Glacial Till) x 15
An open triangle in the water
- = level (WL) column indicates
j r 14 the depth at which
— groundwater was observed
while drilling. A solid
j triangle indicates the
- j — groundwater level in the
boring on the date indicated.
j j — �x 12 Groundwater levels fluctuate.
Please refer to the discussions
in Sections B.3 and F.3 of our
M3.7 20.5 % report.
END OF BORING.
Water not observed with 19' of hollow -stem auger
in the ground. -
Water down 3' immediately after withdrawal of
auger. —
Water down 5'5" twenty days after withdrawal of
the auger. _
- Boring then backfilled. -
IABX- 96-549 Braun Intertec - 8/22196 ST -1 page 1 of 1
LOG OF BORING
PROJECT: BABX- 96-549 BORING:
GEOTECE LAICAL EVALUATION ST -3
Proposed Chanhassen Ice Arena Locations LOCATION:
Park Place See attached stretch.
Chanhassen, Minnesota
DRILLER: M. McWilliams I METHOD: 3 1/4 HSA SW. M". DATE: 7/23/96 I SCALE:
Elev. Depth ASTM
145.9 0.0 Symbol I Description of Materials BPF WL Tests or Notes
FILL;!;!' FILL• Sand L ean
126.9 19.0 f
CL j SANDY LEAN CLAY, with fine to coarse
725.4 _ 20.5 _ — GRAVEL, dark gray, wet, stiff.
_ (Glacial Till)
END OF BORING.
Water down 19' with 19' of hollow -stem auger in
the ground.
Water down 2' immediately after withdrawal of
auger.
Water down 4' twenty days after withdrawal of
auger.
Boring then backfilled.
tABX 96-549
SI'BIIn Tnfn'1.w - 9 M'1 /OL
._ x 14
y Clay, black, wet.
(Topsoil)
143.9 2.0
-
- -L
FILL: Sandy Lean Clay with Clayey Sand, Silty s
and Poorly Graded Sand Silt,
6 MC = 37%
with Topsoil and =
roots, brownish gray mottled with reddish brown,
qu = 0.7 tsf
dark brown and black, wet. -
t
4.
_ 139.4 6.5
r
-
- CL %
LEAN CLAY, with lenses of Sandy Silt and Silty
Sand, gray mottled with grayish brown, rather soft, x
4
136.9 9.0
wet.
(Glaciofluvium)
Sc ::
CLAYEY SAND, with fine to coarse GRAVEL,
seams of Silty Sand, brown mottled with dark k
brown, wet, medium to very stiff.
8 MC = 28%
(Glacial Outwash)
_
x
it
_
21
_
126.9 19.0 f
CL j SANDY LEAN CLAY, with fine to coarse
725.4 _ 20.5 _ — GRAVEL, dark gray, wet, stiff.
_ (Glacial Till)
END OF BORING.
Water down 19' with 19' of hollow -stem auger in
the ground.
Water down 2' immediately after withdrawal of
auger.
Water down 4' twenty days after withdrawal of
auger.
Boring then backfilled.
tABX 96-549
SI'BIIn Tnfn'1.w - 9 M'1 /OL
._ x 14
)G OF BORING
PROJECT: BABX 96-549
GEOTECM4ICAL EVALUATION
Proposed Chanhassen Ice Arena Locations
Park Place
Chanhassen, Minnesota
DRILLER: M. McWillieme I METHOD: 3 114' HSA Std. Hmr.
Elev. Depth' ASTM I
146.4 0.0 Symbol Description of Materials
CL j LEAN CLAY, black, wet.
(Topsoil)
1 142.4 4.0
- 139.9 6.5
137.4 9.0
i =
127.4 19.0
225.9 20.5
BORING: ST -4
LOCATION:
See attached sketch.
' DATE: M3196
BPF WVL
I SCALE: Ik a 4'
Tests or Notes
-: 4
k
SANDY LEAN CLAY, with a trace of fine Gravel,
brownish gray mottled with reddish brown, rather �: 4 = qu = 0.8 tsf
soft. _
(Glacial Till) -
SANDY LEAN CLAY, with fine to coarse
GRAVEL, with lenses of Silty Sand, Sandy Silt and 4 qu = 1.0 tsf
Poorly Graded Sand with Silt, brownish gray to
dark gray mottled with reddish brown, rather soft,
wet.
(Glacial Till) t 8 qu = 1.3 tsf
SANDY LEAN CLAY, with fine to coarse y
GRAVEL, with lenses of Silty Sand, Sandy Silt and -
Poorly Graded Sand with Silt, brownish gray to
dark gray mottled with reddish brown, medium to 8 qu = 1.4 tsf
rather stiff, wet.
(Glacial Till)
_
11
iANDY SILT, with a trace of Sandy Lean Clay,
lark gray, medium dense, wet. 18
(Glaciofluvium) k
END OF BORING.
Water not observed with 19' of hollow -stem auger
in the ground.
Water down 5' twenty days after withdrawal of
auger.
Boring then backfilled
BARX- 96-549 Brpun Intertec - sl=96
ST-4 page 1 of 1
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NOGOG 1
Housing and Redevelopment Authority - May 16, 1996
Robbins moved, Mason seconded to approve the Tax Appeal Defense Agreement with Carver
County. All voted in favor and the motion carried.
CHASKA /CHANHASSEN HOCKEY ASSOCIATION, ICE ARENA PROPOSAL
Todd Gerhardt and Todd Hoffman presented the staff report on this item.
Steve Olinger: Good evening Mr. Chairman and members of the HRA. First I'd just like to
thank you for giving us this opportunity. I'll make it very, very brief. We're, our hockey
association is growing by leaps and bounds, as is in Minnetonka. We're in dire need of ice.
Currently we purchase all 30% of our rinks outside of the Chaska Community Center and that
problem is going to get continually worse. We noticed, I began President a year ago and
started at that time trying to find solutions for the problem that was facing us. I've
approached the three major communities that support our hockey association and that's
Chaska, Chanhassen and Victoria. To see if any of those cities would be willing to build an
arena. It's difficult for a privately funded arena ... to do ice management and building costs are
such that it's very difficult for a private organization or individual to own an arena. We have
cut and scrimped and scrapped and found a way that we can do it but the only way that we
can do it is if we are given land by one of those cities and that's what we're asking at this
time. I think that it could be a great advantage to Chanhassen, who would like to have an
arena. I know most of the surrounding communities, Chaska, Shakopee, Eden Prairie,
Bloomington, Hopkins, Edina, Minnetonka, Wayzata, Mound, all have their own arenas. I
think Chanhassen has that opportunity to have an arena now that they need only to donate the
land and we would ask perhaps with some help in the soil... I think it would work well with
Chanhassen ... for our association to have an arena in Chanhassen also. Approximately half of
our members of our hockey association are from Chanhassen and they would like to have an
arena that's their home. We are willing to put in a lot of work to make this arena work but it
can't work financially unless we have land that's donated by one of those cities. We would
like to start the project this summer. The main reason for that is access to money, funding
that is still there and we have, we sit nicely for that money that's... multiple cities and
organizations ... in addition to the areas that are build on in girls hockey and Chaska certainly
is already on that as is our hockey association. The city of Waconia as well is starting,
Waconia is starting a hockey association there and so we're bringing a lot of communities
here in addition to Minnetonka, and while they're need for ice also. And so we've got a lot of
parties involved here that are in desperate straits at this point. I mean it would serve us as
well as other surrounding communities quite well. I don't like to hassle things. We're not
going to, we try to be a good, responsible group of citizens who will work hard to make an
arena that the City of Chanhassen can be proud of and that their citizens can be proud of. So
I ask that you consider this proposal. If you have any questions at all, I'm always free to
17
Housing and Redevelopment Authority - May 16, 1996
answer them so, thank you for your time. If you have questions this evening, we have people
here who would be able to answer them. Thank you very much.
Boyle: Thank you Steve. Anybody else have any comments or questions from the audience
at this point? Todd. Don. From the Board.
Chmiel: Well we have met a couple different times. One of the things that wasn't mentioned
is the fact of the two school districts as well that would be interested in connecting into the
situation. This was mentioned that the Mighty Ducks have funding and there is
approximately $250,000.00. I've checked on a couple cities who have gone in for that and
have received their dollars and have just put up one arena. According to the Mighty Ducks
you need to put in two.
Boyle: Two?
Chmiel: Two ice. Two sheets of ice. But according to what I understood from each of those
two communities, is that they make a commitment putting in a second one without any dates.
So with that, if we put in one sheet now, maybe one sheet later, you would still acquire that
$250,000.00 which is a portion of that. And then there may be additional dollars from the
two school districts because their concerns of having girls hockey, which has become very
popular. So there is some things that we still have to iron out with that to see what, if any,
contributions that they would make for this but they were certainly interested in it.
Boyle: But Don, would these contributions come in terms of helping assisting in purchasing
the property or the obligation afterwards?
Chmiel: I think the cost of probably building.
Boyle: Building, okay.
Randy Mueller: Just to comment on that, just so there's no confusion is that with the building
that we're proposing to put up, the building would cost approximately between a million and a
million and a quarter for the structure itself. It would be a 6 month ice facility. It's not
intended to operate year round so it runs essentially from the first of September, or I mean the
first of October until, through the end of March. That greatly reduces the cost of the
construction because obviously maintaining ice inside a building where it's 90 degrees outside
becomes a lot more expensive and there isn't enough use for the ice to economically do it.
So it's a 6 month use facility. The second thing, the comment is that we're not looking for
any help on the building itself. We would like to use the Mighty Ducks to help us but if we
didn't get that money, the objective for the association, of which we're all members, is that we
18
Housing and Redevelopment Authority - May 16, 1996
would build the building, finance the building and pay for the building ourselves. We're not
looking for the city for any money towards the building. We're not looking for the city for
any type of financing to the building. The association wants to be able to run, operate,
manage, pay for the building in various ways. The Mighty Ducks being one option.
Corporate sponsorship being another option. Obviously use of ice time being the major
contributor to cashflow but we're not looking to the city for anything other than the land itself
and as Steve mentioned, some possibility of contributing towards correction of the soils, if in
fact that's a large number.
Steve Olinger: I'm sorry, you had a question for...
Mason: Well, a comment and a question. Say hi to your family for me. I had a couple of
his kids. You're only talking hockey from October to March. You make it sound like it
won't be used for anything else in the summer. I mean can it be used for light skating? Can
Chan Park and Rec use it in the summer for other activities? I mean these are possible
options. Indoor soccer or whatever.
Steve Olinger: Those have been kind of negotiable trade -off type things and maybe the Park
and Rec Department, we would agree to let them use it if they paid the utilities bills or
staffed it or that type of thing. It could be a facility that could be used for indoor tennis or
things like that. We did a study of 12 different associations that own their own rinks.
Princeton, Hastings, two that come to mind. We looked at Delano, which was a fiasco. A
bad experience for a local association. And in every instance the summer months were non -
profitable. No matter what they used it for, and that was from storage to flea markets to
antique markets to boat shows to you name it. They tried everything and nothing ever
generated money. If they opened the doors in the summertime they lost money as an
association trying to operate it. But that's not to say that from a park and rec standpoint, and
offering some programs for the youth of the city and budgeting it through the Park and Rec
Association and staffing it that way, that it couldn't be a valuable, have valuable use to the
city in the summertime. And it doesn't pay to operate ice. There's enough ice around and the
cities, between Chaska and Eden Prairie and those communities keep one sheet of ice pretty
much about I 1 months a year, and there's plenty of open ice at those rinks right now and it's
just too expensive for a private group to operate. And the other thing, just to comment on
this whole scenario. The reason the association needs to owns it is there again, in order to
make the numbers work, there's 5010 status that the association has, allows the property to
be tax exempt. The people at the State Legislator, and I can get a copy of it if the city
doesn't have it, three years ago in their infinite wisdom, before the Mighty Ducks Bill passed
a bill that said any hockey association or entity that has 5013 status and provides ice is tax
free. So the State passed that. It was three years ago now that they passed that so there
again, that's the intent of the association. No individuals are going to own it or anything like
19
Housing and Redevelopment Authority - May 16, 1996
that. It's just strictly for the association to try and help solve the ice problem that we have
inside of town.
Boyle: Thank you.
Mason: Can I keep going here?
Boyle: No. Go ahead.
Mason: Todd, what's your spin on that for summer use?
Hoffman: Are you talking concrete floor or sand? It could be either?
Steve Olinger: It could be either.
Hoffman: If it's a sand floor, then it's no use. If we invest in concrete, then there's some
potential use but you'd have to come up with an operations plan. It may be best in our case
as well to keep the doors closed in the summer. We've got people want to be outside. If this
thing was closed down and opened for storage in the winter, they'd fill it with boats and make
money but in the summer the storage market is a little slow. So we'd like to investigate that
but I don't have an answer for you today.
Mason: Sure.
Boyle: Any more Mike?
Mason: Oh maybe, but I'll wait now. Thank you.
Boyle: Obviously whenever you approach something like this costs come up. No doubt, no
doubt we need ice in this area. More ice. I think everybody here would agree on that.
Todd, I'm really concerned on the soil survey because that obviously could be a major
investment. If we were willing to pay for soil adjustments to put something on there, you
could also put revenue producing property on that land possibly, is this correct?
Gerhardt: Yes. I mean the soil corrections are substantial. I think. From discussions when
we purchased the property and unfortunately the people at Opus that I've negotiated with
aren't there any longer and we do have a contact in Mr. Bangasser is doing research and
trying to find those. And he's gone to every department and now he's into engineering to try
and see if he can't find those soil reports. We have contacted the soils engineer, or Braun to
see if they've had it. But I know that the soils were substantial when Wooden Bird was going
20
Housing and Redevelopment Authority - May 16, 1996
to go in. I remember it was in the 20's that you had to go down. 20 some odd feet. And
you're talking soil correction in the $200,000.00 - $300,000.00 range if you have to go down
that far. The good soils are up in the trees and one of the reasons why we purchased the site
was to retain that large stand of trees. And if you were to put a hockey facility in, you would
have to clear cut all those trees because you're going to need at least a minimum of 3 acres,
would be my guess. No?
Randy Mueller: The building itself takes about 26,000 square feet and then whatever would
be required for parking so I would guess natural use space would probably be around an acre
to a little bit stronger, not counting your setbacks and that type of thing but I would guess
20,000 square feet for the parking plus 26,000 for the road. So you might need an acre, an
acre and a quarter... not counting setbacks. Probably just a little over an acre.
Hoffman: Which would relate back to your 3 acres by the time you get down to, you can't
just have 100% impervious surface.
Gerhardt: ...to go in there and reforest it for an ice arena, I think you're better off going and
buy a piece of land in the industrial park instead of going that route. To be honest. And
even if you were to make the soil corrections, I think you may even be better off going and
buying a piece of land in the industrial park instead of going down and digging down and, I
mean you're going to have it engineered into the thing but you only need an acre and a half.
You're better off, I think going and buying a good piece of ground that have stable soils on it
to build something like that. But it's tough to speculate right now. I think we should
continue to, I'll call Mr. Bangasser again tomorrow to see if it's had any luck and see what we
can do to find those.
Boyle: What did we purchase that property for, do you know?
Gerhardt: We bought it for the outstanding specials against the property. It was $160,000.00.
Boyle: Jim.
Bohn: For an ice arena, that type of construction for an ice arena compared to a commercial
building, I don't think would be the same.
Gerhardt: Construction?
Bohn: Right. Footings and what not.
Gerhardt: No, they'd be the same.
21
Housing and Redevelopment Authority - May 16, 1996
Bohn: They'd be the same?
Gerhardt: Yep.
Bohn: Would you have the same weight?
Gerhardt: I've got to think you're going a tilt up concrete facility or cinder block type.
Audience: Steel structure.
Gerhardt: Steel, yeah. That's all industrial buildings.
Steve Olinger: It's going to be the same construction as any other commercial building in
that area.
Gerhardt: You've got the steel truss. You know that's where your weight is coming from.
You know the ice, you're right Jim. It's distributed. That's the weight factor. Your door lifts,
the building weight is where you've got to support it.
Boyle: Charlie, do you have some questions?
Robbins: No.
Boyle: Well assessing as I see it right now, first of all the costs are concerned. Once the
costs get verified then we have to look at how that sits in the priorities of the HRA and we
would hope that staff could help us in that also with current budget, etc and other priorities or
part of our plan. The other party is, and I believe you brought it up is, options of other
pieces of property within the area that we could look at. I have to be very honest, I mean
we've got $160,000.00 invested, which doesn't sound good that we're going to recoup any of
that right now unless something, we can find that it would fit within the trees and not spend
up to $300,000.00 for soil improvements, which is astronomical. That's kind of, as I see it at
this point in time so we're kind of taking the ball and putting it back in your court Todd to
give us some more information.
Gerhardt: Yeah. For the group, I mean it's one that I think they're looking at feedback. If
the soils are not that bad, but they are, you know would you donate the land and then the
group would have to weigh, which I don't know if you would, consider making soil
corrections of $200,000.00 to $300,000.00. You could go buy a good piece of land probably
for that price. So I don't know if we're answering all the questions you want to hear tonight
on this thing. I think the big nut here that we've got to crack is to find out what the soils
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Housing and Redevelopment Authority - May 16, 1996
really are. I mean we know that there's some bad ones out there. Is there a small pocket
somewhere where we can probably fit the building on.
Steve Berquist: Is Outlot A the same type of soil...
Gerhardt: There's a major sewer line that goes through there.
Hoffman: It's a utility alley way and then there's the wetlands just immediately to the east of
that site. If you look at it, if you care to take a drive down there. The construction trailer for
the Powers Boulevard reconstruction is sitting on Outlot A right now. It's a pretty narrow
strip of land. Todd's correct in his description. The trees are a very nice buffer to the site.
As you drive down Audubon Road, you don't even know it's there. And that's why it feels so
good for a site for such a large box user as an ice arena. You could essentially build it and
not know it's there. Even if you clear cut the trees, you're dealing with a significant grade
there which would be very difficult to overcome. So whatever the eventual use of this
property, I would advocate that the trees stay and then we try to do something down, and
there is some good ground there on the edges and obviously they poked this road back in
there, which sits on relatively stable soils. Throughout the conversations over the past few
years, you know there's also the issue, you could pull the cul -de -sac back and there's some
potential for shared parking. There's already a parking lot there just at the entrance to Park
Court on the right, or east side. So really if a soil study needs to occur here and if the HRA
is interested for this use or a potential future use in commissioning some type of site survey
and then a soil study so you could either marketed it to this group or another group, I think
that would be a good starting point tonight because tomorrow when we go to work, we'd like
to know how to proceed as far as the future of this property. One thing I should bring up is
that on the portions of Outlot A and then the entire eastern edge of this property will be a
major trail corridor that will lead to the underpass of Highway 5 into Lake Ann Park. So it's
not like this is going to be the back alley of Chanhassen forever. When the highway goes
through and the underpass is constructed, at the creek this will be a major pedestrian/bikeway
thoroughfare. As people come up from the southern neighborhoods, up Audubon and up
Powers, and go down Park Road. We're building the first segment of that pedestrian system
with an 8 foot sidewalk on Park Road as a part of this Powers Boulevard and then they'll
come east /west on Park Road and shoot right up this alley way so it's going to be a public
piece of ground into the future.
Gerhardt: One of the ... there's a big wetland that sits right here and Al Iverson owns Lot 4
here. He's always had plans of putting in a building here and here, and boy it'd be nice to
have a chunk of land here and... There's a lot of trees there too. But he owns, this is some
good ground here and we could talk to Al and see if he wanted to do a swap. I don't know...
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Housing and Redevelopment Authority - May 16, 1996
and maybe he's got some soil plans ... His kid's a big ice player, hockey player too but he's in
the Minnetonka School District so you know... Just as another option...
Boyle: Todd let's, under the assumption that soil corrections, etc is far out of line for the
cost. I mean the cost for the soil corrections are out of line. Then the other option is that
HRA would purchase property for the task force to build an ice rink. Does that fit within the
authority of the Housing and Redevelopment and proper uses ... TIF money?
Gerhardt: No. That's why I keep thinking of ways of trading land and things so we don't
have to spend money because I don't know how much money we have, if any to spend so, but
I know we don't have $200,000.00 to $300,000.00 to spend.
Hoffman: To answer the question, public recreation is a bonafide use of tax increment
financing. The Chanhassen Recreation Center is a prime example. Many communities have
facilitated construction of not only community centers but ice arenas and other recreational
uses.
Gerhardt: Yeah, I mean but this board is fighting budgetary problems and you know, other
economic development districts may have the capabilities of funding that but what this board
is responsible for, I don't know if we have $200,000.00 or $300,000.00 to spend on something
like this. They do have land and there may be a trade in there we could do or if the soils are
one that the CAA can take on. I'd like to meet with Al and see if that's an option, if the
HRA's in agreement with something like that.
Boyle: I believe we'd be in agreement to look at other options, yes. Excuse me, Mike.
Mason: Yeah, no. I was going to say, I mean clearly we need ice. I mean whether I skate
or not, I certainly enjoy watching it and it's an activity that's up and coming. It has been. I
think a couple things need to happen before we can really give any clear direction, is we need
to find out how bad the soils are. We need to see, we either need...
Boyle: If there's no further discussion on item number 4. Or questions or concerns. Do you
gentlemen kind of understand where we're at ... quite a bit of discussion.
(There was a tape change at this point in the discussion.)
24
- 13'9'(THU 1:1 DELOITTE &TOUCH -CSS TEL:61239743?0 P.002
A VISION
FOR
CHANHASSEN /CHASKA/VICTORIA AREA YOUTH
The Chanhassen/Chaska/Victoria area is rich in tradition and committed to family values.
Throughout its history, the Chaska/Chanhassen Hockey Association (CCHA) has provided
young individuals of the area with a value- centered athletic experience.
Gender equity, accelerated growth of our area, the unprecedented popularity of hockey and figure
skating give us an opportunity to expand the mission of our association. We are inviting
organizations and individuals to join us in an effort to provide the best athletic experiences and
facilities possible.
The CCHA vision is to create an additional indoor ice facility to help meet the projected growth
of boys - girls hockey and figure skating. The plan calls for the creation of a new indoor ice
arena located in the city of Chanhassen. A new facility will ensure reasonable hours of
participation, lessen the need for athletes to travel great distances, and improve the level of
competition. In addition, this will dramatically improve athletic and recreational opportunities
For our youth.
The CCHA has engaged MARK DAVY & ASSOCIATES, a fundraising consulting firm, to
conduct a project readiness study that will determine:
• Level of awareness the Chanhassen/Chaska/Victoria community has regarding our project
• IIow important and essential the community believes the project to be
• Strong points and any areas of concern that might affect the project
• Potential leadership available within the community to conduct a successful fundraising
campaign
• Level of financial support available in the Chanhassen/Chaska/Victoria community
The CCHA has done a preliminary cost estimate for a new indoor ice arena and believes that this
facility can be built for approximately $1.2 million. The project readiness study will indicate
what alliances must be established and what options are available to reach this vision. The
CCHA is sensitive to how this project will be funded. The CCHA believes that a private
fundraising campaign will enable the CCHA to build this facility acid that this new facility will
generate the operating funds needed to support it.
In conclusion, the advent of women's hockey provides an exciting opportunity to turn our vision
for a new facility into a reality. The CCHA wishes to serve in the role of catalyst to begin this
important process. Your input and support is vital to the success of this project.