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2. Feasibility Study for Trunk Utility Improvement to Upper Bluff Creek Area, Authorize Plans & Specs I I , 0 , CHANHASSEN C I TY OF cp.... 1 ,. 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 1 (612) 937 -1900 • FAX (612) 937 -5739 Mott by Ctty Administrator 0 MEMORANDUM SAW 7 l- 775 TO: Don Ashworth, City Manager 0115 Submitted to Commissia[ 1 FROM: Charles Folch, City Engineer u► DIN Submitted to Council DATE: April 8, 1992 471- /.3-q2---' 1 SUBJ: Public Hearing on Feasibility Study for Trunk Utility Improvements to Upper Bluff Creek Area; Authorize 1 Preparation of Plans and Specifications Project No. 91 -17 (continued from 3/9/92) 1 On Monday, April 13, 1992, the City Council will continue the public hearing on the feasibility study for trunk sewer and watermain facility improvements in the Upper Bluff Creek area that I was first held at their regular meeting on Monday, March 9, 1992. At the previous hearing there was a great deal of public testimony given with a number of questions raised on various aspects of the I project. Therefore, the City Council took action to continue the public hearing to Monday night's meeting in order to allow time for preparation of formal responses to the relevant questions raised. These formal responses are attached to this staff report. I The two most common questions asked at the meeting involved assessment amounts to large -lot, small- acreage hobby farms and II specifics on the assessment deferment to green acre properties. On the first matter, the assessment hearing will be held at the completion of the project, however, the large -lot, small- acreage hobby farm properties with an existing home on them are proposed to ' be charged one unit assessment for trunk sewer and trunk water at a rate of $970 and $1,275, respectively. If these properties should ever subdivide in the future, the trunk assessments would be 1 collected via the trunk hookup at the rates established at that time. For those properties under green acre status, levied special assessments, by law, would go deferred until such time that the I green acre status is removed and /or the property use changes. This deferment would go without interest accumulation; however, the future trunk hookup charges would be paid at the rate at that time. ill These trunk hookup charges are annually adjusted for inflation and II construction cost increases. With the one unit charge to large lot parcels and green acre assessment deferral, the total project (Phase I and Phase II) is still forecasted to yield a positive II assessment revenue balance. II NIIII, PRINTED ON RECYCLED PAPER Don Ashworth April 8, 1992 Page 2 1 Due to the magnitude of the overall project and the initial development schedule expressed by the properties involved, the ' project is proposed to be constructed in two phases defined primarily by the Twin City Western Railroad. Phase I is to consist of the improvements lying primarily south of the railroad; however, Hans Hagen, the developer for the 69.5 acre Volk property located ' north of the railroad and immediately east of Galpin Boulevard, expressed interest in being included as part of the Phase I improvements. Phase II will consist of improvements north of the ' Twin City Western Railroad and could be constructed in 1993 or sometime thereafter. Formal responses to each of the relevant questions from the ' previous public hearing are attached and will be read aloud at Monday's continued hearing. At the close of the public hearing, if there are no further relevant outstanding issues or questions to be 1 addressed, it is recommended that the City Council approve the feasibility report for trunk sanitary sewer and watermain improvements in the Upper Bluff Creek District, Project No. 91 -17, 1 officially order Phase I of the project and authorize preparation of project plans and specifications and an EAW. ktm Attachments ' 1. Letter from Bonestroo, Rosene, Anderlik & Associates dated April 7, 1992. 2. Letter from Charles W. Mattson dated March 7, 1992. 3. Letter from Don Patton dated March 3, 1992. c: Bob Schunicht, BRA Dave Hempel, Sr. Engineering Technician Jerry Boucher, Utility Superintendent 1 1 1 1 1 1 ini Otto G. Bonestroo. PE Keith A Gordon. P.E James R. Maland, RE Rene C. Plumart, A.I.A. I/ Bonestroo Marvin L Sorvala.kREE Richard eny A. Bourdon. RE Mark R. olsnRE.son. PE Agnes D. Pertzsch. P.E. Richard E Turner, PE. Mark A Hanson. RE Thomas E Angus, RE Cecilio Olivier, PE. Rosene Glenn R. Cook. P.E. David O Loskota, PE Daniel J. Edgerton. P.E. Gary W Morien. PE. Anderlik & Thomas E Noyes. RE Robert C Russek. ALA Mark A Seip. PE Karen L Wtemeri, PE vi Robert G Schunicht. RE. Howard A Sanford. PE Philip J. Caswell. PE Keith R. Yapp, P.E. Susan M Eberlin, CPA. Donald C. Burgardt. RE Ismael Martinez, PE. Michael P Rau. P.E. A ssociates Ted K. Field. P.E. Mark D. Wallis. P.E Charles A. Erickson , Michael T. Rautmann, P.E. Thomas R Anderson. Al A Leo M. Pawelsky Robert R Pfefferle. PE Gary F Rylander. PE. Harlan M. Olson Engineers & Architects Thomas W Peterson, PE Miles 8. Jensen. PE. Michael C Lynch, P.E L. Phillip Graver flf, PE Mr. Charles Folch, P.E. April 7, 1992 I City of Chanhassen P.O. Box 147 I Chanhassen, MN 55317 Re: Upper Bluff Creek Area I Public Hearing Comments City Project No. 91 -17 Our File No. 39304 .' Dear Charles: • A number of questions and comments were received at the March 9th Public Hearing for the Upper Bluff Creek Area Trunk Utility Improvements. The major concern expressed came from residents of single home parcels less than 10 acres in size. They were concerned about the I proposed assessments against their properties. In response to these concerns and based on previous actions on recent projects, the Council I expressed their opinion that parcels of less than 10 acres with only one unit on them will only be assessed one unit at this time. If any of these properties are developed in the future, they will be charged trunk hookup charges for the remaining units based on the trunk hookup rate I at that time. This is the policy used on the Lake Ann Trunk Sewer Assessment. Note that the Council does not have to make an actual assessment decision at this time since the Assessment Hearing for Phase I will probably not be held until the fall of 1993. 1 The less than 10 acre parcels affected by this decision are listed below: I Map Reference No. P.I.D. Owner 4 25- 0140900 Dave Stockdale 14 25- 0150600 Lawrence Raser 1 15 25- 0151300 Thomas Schmitz 16 25- 0151400 Dale Wanninger I 19 25- 0151800 Howard Johnson 21 25- 0160200 Henry Wrase * 24 25- 0160311 Paul Paulson I • 25 25- 0160500 Chaska Gateway Partners . 31 25- 0220600 Wayne Bongard 32 25- 0220610 Marion Michel I 33 25- 0220630 Ronald Entinger 35 25- 0221000 Wilmer Molnau Page 1. 1 2335 West Highway 36 • St. Paul, Minnesota 55113 • 612 -636 -4600 1 1 1 ' * Note that the Wrase property contains two existing units and will be assessed for two units. 1 Other questions and comments expressed by residents are specifically addressed below: 1. Marion Michel, 8941 Audubon Road. Mrs. Michel was concerned about the high cost of ' the proposed assessment against her property. Her property is one of the properties with less than 10 assessable acres that will only be assessed one unit at this time. Also, her property is presently in Green Acre status. Therefore, the assessments pending against 1 the property will not be due until such time that the property is removed from Green Acre status. The assessments for Green Acre properties will be deferred without interest, however, the rate charged will be the current rate at the time the property is removed 1 from Green Acre status. 2. Wayne Bongard, 8831 Audubon Road. Mr. Bongard's question was answered by the 1 Council's opinion on parcels less than 10 acres. 1 3. Doug Barinsky, 8731 Audubon Road. Mr. Barinsky's question was answered by the Council's opinion on parcels less than 10 acres. ' 4. Ron Entinger, 8851 Audubon Road. Mr. Entinger also lives on a parcel less than 10 acres in size. He questioned whether his property should be assessed for trunk sewer since no sewer will actually abut his property. His property may be assessed at this time since the trunk facilities to service the property (lift station and force main) are being installed. 5. Don Patton, Lake Susan Hills Partnership. Mr. Patton submitted a letter to the council ' questioning whether or not the sewer stubbed from Lake Swan Hills would be used. This sewer stub is intended to be used by a portion of the Chanhassen Business Center. Mr. Patton's other questions were answered at the hearing. 1 6. Al Klingelhutz. Mr. Klingelhutz spoke on behalf of Earl Holasek who owns the property west of Galpin Blvd. and south of Co. Rd. 18. They wanted to know why this property was being assessed at this time since Mr. Holasek had no plans to develop his property. The property is proposed to be assessed for trunk sanitary sewer as part of Phase II. It is assumed that a separate public hearing and assessment will be held for Phase II. The ' Council does not need to make an assessment decision on this property until the assessment hearing for Phase II. Therefore, the decision as to whether or not to assess this property can be delayed with the Phase II assessment hearing which will probably not 1 be held until the fall of 1994. This property is also in Green Acre status. 7. Larry Van DeVeire, 4980 C.R. 10E, Chaska. Mr. Van DeVeire owns the property in the 1 proposed assessment area north of T.H. No. 5. He was concerned over the zoning of his property and the progress of a corridor study for T.H. No. 5. After learning that his Page 2. 39304.cor 1 1 property was in Phase II and would probably not be assessed until the fall of 1994, Mr. 1 Van DeVeire was satisfied that there would be some time to answer his zoning and land use questions. 1 8. Henry Wrase, 8175 Hazeltine Boulevard. Mr. Wrase stated that he has a parcel less than 10 acres in size with two homes on it. He was told that he will then be assessed for two I units. 9. Wilmer Molnau, 8541 Audubon Road. Mr. Molnau questioned whether his assessments 1 will be deferred until he hooks up or not. He owns one of the less than 10 acre, one unit properties and will be assessed for one unit at this time as discussed previously. 10. Hans Hagen, Hans Hagen Homes. Mr. Hagen is developing the roe just north of g g g P g property rtY J the TCW Railroad and wants to be included in Phase I. 11. Bob Worthington, OPUS Corp. Mr. Worthington discussed OPUS's plans for g P g P development and expressed his concern that the proposed trunk sewer and water assessments were "2 to sometimes 3 times above what we are paying in other communities." Mr. Worthington also questioned the proposed sub -trunk hookup charge for the property north of T.H. No. 5, east of T.H. No. 41, and west of Galpin Blvd. This sub -trunk charge was discussed in the MUSA Expansion Area Report but was not part of the Upper Bluff Creek District Report. In answer to Mr. Worthington's statement about Chanhassen's trunk rates being 2 to 3 times I higher than other communities, Chanhassen's rates for industrial property are higher than some others due to the City's unique topography and desire to protect environmentally sensitive areas. If you would like, I could obtain some sample trunk sewer and water assessment rates for comparison purposes. 12. Dave Stockdale, 8301 Audubon Road. Mr. Stockdale questioned whether his property 1 was being assessed twice since it had previously been assessed under the Audubon Road project. The proposed assessment against his property is for trunk sanitary sewer. The I sewer assessment against the property for the Audubon Road project was for lateral sanitary sewer. 13. Councilman Wing. Councilman Wing raised the issue of why the Timberwood Addition was not included in the proposed assessments. Paul Krauss answered this question explaining that the policy of not assessing modern large lot subdivisions came about as 1 part of hearings on the comprehensive plan. Please refer to Paul's answers in the minutes of the meeting for further details. Page 3. 1 39304.cor 1 1 1 1 Bob Schunicht and I will be at the April 13th Council meeting for the continuation of the hearing on this project. Feel free to contact either of us if you require any additional information. Sincerely, BONESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC. • (s.,LA Y1\1-4)--ki4k Phil Gravel, P.E. 1 PG:Ii 1 Attachment: Sanitary Sewer Assessment Area Map. • 1 1 1 1 1 1 1 1 1 39304.cor Page 4. 1 I' L� ^ . '. 1 { ) n•w S rr ,:: q-3, �., l^ ® mu NOW "r r*C^'W BYO rtuirAmil ,., nom .,, ; , i....,::.....,.,:. _' 1 2" PVC W . � r ■ walwromr r/ / , — 1 ► -'— '• 4 '•.L' . i` , -� _ BOTHERS ,,�� "`Ro" ® Jdi '•�^","^"` - 7 f + ' , ,;.;:,,.. , -: , -.; : 11 , _ . Q ' 71r•' '°� ff ■ PROPOSED • .� ?{4 . w .•9.911 AIM ,.y UFr STATI��� • � O O `. `• O 4 IIII • .._ .7, . ir,....rms4 ,_ ...„ l'a 411 ellin prifv d . ‘ ithitsti.p.olii ma m a, .rr WPM - ,�� Imp ��r•, -_ .-. / ,ti % i ji 0 „• 1 eY OTHER /^ l 0111n ■11 �t ipp A. ... ...... �i�ll` a � I 4 I. 11 Of 11 • q� vor. 4 i 1• , ar r �, 1 SHADED A tills r '! I, � 7 AREA = WETLAND • 40 = PROPERTY 1 3 11:074:.-V. ` 1, . i .L 91 I REFERENCE NUMBER h O � � 1000 2000 - AREAS NOT INCLUDED Scale in feet IN ASSESSMENT ROLE PROPOSED FUTURE tai B JPPER BLUFF CREEK DISTRICT LIFT STATION TRUNK R o s estroo osene COI Anderllk & :ITY OF CHANHASSEN FIGURE 5 Associates 'ROPOSED SANITARY SEWER TRUNK ASSESSMENT AREA E & Archll.c 23395 5 Wes ..t Mlg..•r 38 SI. Paul, IIIme•of• 5310 9305804 OwG FE . 1992 COMM. 39305 - - - 111111 - - ( 4ar /es CHARLES W. MATrSON L70Ll1 I ATTORNEY AT LAW CITY OF CHANHASSEN 7:6 - i in 2870 Wheeler Street North TELEPHONE (8 12) 6334~ 0512 ROSEVILLE 1 1\11 AR 1O 199Z ST. PAUL. MINNESOTA 55113 ENGINEERING DEPT. March 7, 1992 Mayor Donald Chmiel I Council Member Ursula Dimler Council Member Michael Mason • Council Member Richard Wing Council Member Thomas Workman I Honorable Mayor and Honorable Members of the Chanhassen City Council: I Re: Upper Bluff Creek District Sanitary Sewer and Water Main Improvements, Project 91 -17 • Proposed Adoption of Plan for Tax Increment Financing ' District No. 2 -2 I am the fee owner of 89.94 acres (gross acreage) on the east side I of Galpin Boulevard immediately south of the railroad and bounded by Lyman Boulevard on the south. In addition, I hold bare legal title and an underlying Contract for Deed to the Audubon 92 property, I which I conveyed to Western United Life Assurance Company until July 15, 1993. Said underlying Contract for Deed contains no acreage release provision. I I have a number of concerns about the proposed Project 91 -17 and am opposed to its approval in 1992. 1. The industrial and commercial real estate market is in a I severe downturn. Only this week we learned from the media about Wells -Fargo foreclosing on 1 Carlson Parkway in Minnetonka for failure of a Carlson Limited Partnership I to pay a balloon payment. Although payments have been timely made to me on the Audubon 92 property, who is to say what the future holds, especially with the proposed special assessments of over one million dollars on the ' Audubon 92 property and ultimate huge increase in real estate taxes on the land itself. I 2. My property on Galpin Boulevard is of even greater concern. I am only an individual investor and would find it exceed- ingly financially burdensome if I had to start paying I special assessments on the property in 1994. On the other hand, if a decision regarding Project 91 -17 were delayed for a year or two, to see how the industrial and commercial real estate market comes through this downturn, it would be I much more prudent for Audubon 92 developers, the City of Chanhassen, and for me. Meanwhile, a scaled -down version 1 RECEIVED MAR 1 0 1992 1 CITY Ur t,r(rwir1ASSE(! Page Two 1 Mayor Chmiel and Chanhassen City Council March 7, 1 992 of water and sewer improvements could be adopted for the Audubon 92 property by connecting part of its acreage to water and sewer lines at the northeast corner thereof. 3. With all due respect to developers and real estate brokers, I they tend to err on the side of being overly optimistic. I do not want to market my remaining property until is is prudent to do so. 4. Access to the proposed sewer trunk lines is poor for my Galpin Boulevard property as compared with the Audubon 92 property. If you look at the topography, it is clear that it will require exceedingly lengthy, round -about sewer lines to reach the trunk lines from Galpin Boulevard. Water does not conveniently flow uphill. The difference in accessability if not reflected in the proposed sewer assessments for the two sites. Finally, I am opposed to the adoption of the Plan for Tax Increment 1 Financinr.z District No. 2 -2. This Plan encompasses most of the Audubon 92 property. Without Project 91 -17, District No. 2 -2 clearly becomes unnecessary. Moreover, there are strong philosophical ' grounds upon which one can oppose Tax Increment Financing districts. I am reasonably sure a number of taxpayers from the City of Chanhassen have raised such reasons before the Council in the past. ' Thank you for your consideration. I am unable to appear at the March 9 meeting of the City Council due to conflict with my college teaching schedule. Sincerely yours, Charles W. Mattson cwm 1 PI 9/ — / 7 4e , a c M R13ALTl 7600 Parklawn Avenue #200 MN I r CENTER (61-7600 2) 835 55435-5174 RECEIVED March 3, 1992 MAR 041992 I CITY OF CHAIN r-7A EN I Honorable Mayor and City Council City of Chanhassen ■ 690 Coulter Drive 1 Chanhassen, MN. 55317 Subject: Lake Susan Outlot A, Project 91 -17 1 Gentlemen, • This letter is to express our position on the Upper Bluff Creek utilities ' • improvements as it affects our property. As originally advertised the area east of Audubon was not described as I being affected by the project. We incurred substantial expense to extend a sanitary sewer access point west of Audubon as part of Lake Susan 3rd Addition. If this is not to be used, a credit for our cost should be given. I In reviewing Appendix B., two categories of cost are indicated: Trunk Cost and Lateral Cost. Previously a city connection change has been paid, and I I strongly object to this new Truck Cost if connection changes are not dropped. I We will expect assessments to be deferred under green acres as is the current condition. The zoning plans calls for a high density development on Outlot A and that market is several years away for this area. I I appreciate this letter being entered at the Council Meeting on March 9, 1992. Sincerely, I 1 L, , ii‘ I it Don Patton 1 Lake Susan Hills Partnership 1 - ® th_ Personal Interest, Professional Results A IOW. 44XAmiL