1980 12 08
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REGULAR CHANHASSEN CITY COUNCIL MEETING DECEMBER 8, 1980
Mayor Hobbs called the meeting to order at 7:30 p.m. with the following members present:
Councilmen Pearson, Neveaux, Geving, and Swenson.
APPROVAL OF AGENDA: Councilman Neveaux moved to approve the agenda as presented. Motion
seconded by Councilman Swenson. The following voted in favor: Mayor Hobbs, Councilmen
Pearson, Neveaux, Swenson, and Geving. No negative votes. Motion carried.
AWARD OF BIDS, PUBLIC IMPROVEMENTS, COLONIAL GROVE 2ND ADDITION: Councilman Geving
moved to table action to December 22, 1980. Motion seconded by Councilman Swenson. The
following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Geving, and Swenson.
No negative votes. Motion carried.
PUBLIC HEARING
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
HENNEPIN COUNTY
Mayor Hobbs called the hearing to order at 7:40 p.m. with the following persons present:
Lois McRostie, 7015 Dakota Ave.
Bill McRostie, Bloomberg Companies
Don Kallestad, 431 West 78th St.
Conrad Fiskness, 8033 Cheyenne
John Boylen, Super Valu
Rome Roos, 8001 Cheyenne
Jim Orr
Michael Vergo
Gordon Freeburg, 3891 Lone Cedar Lane
Russell Pauly, 401 West 78th Street
Joe Betz, 8107 Dakota Lane
John Przymus
Earl Cravens
John Havlik
Don Schmieg
LueAnn Wallentine, 507 Chan View
Larry Blacksted, Hennepin County
Don Ashworth - This is the first year that Chanhassen has been eligible for an outright
entitlement of block grant monies. There is still a question as to
whether or not Chanhassen will receive the monies and that's in regards
to interpretation by the Federal Government. We are proceeding under
the belief that in fact we will become eligible for grant monies. It
will be approximately $60,000 that would be received next year and those
monies could be accumulated for two year period before making any type
of allocation, As there are no current identified uses for these funds
we are not proposing a specific budget at this time. The hearing would
be fore any persons wishing to make statements in regards to the usage
of that money. They have to dedicated into the area of housing programs
or programs helping low and moderate income individuals similar to
potentially a senior citizen project as a part of the downtown project.
A potential write-down of special assessments for low and moderate
income individuals on programs where the City has gone through and put
in sewer and water type improvements. Potentially supplementing things
like the insulation program for elderly, etc.
Larry Blacksted - Chanhassen now has been certified by HUD as a participant in the
program. We finally did get clearance in late November. This is
the first time, due to legislative change in 1979, that we were allowed
to do the whole City of Chanhassen. Prior to that time the only
part of Chanhassen that could have been included was only that portion
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that lies in Hennepin County. Chanhassen and one other city in the
county fall into this classification. You are participating with
42 other communities within and adjacent to Hennepin County. I
The program in total will generate to the recipients of
approximately $4.2 million. The hearing tonight is basically
to get ideas from the residents as to the type of activites
that could be pursued. The relationship of Hennepin County
to this program is that we serve as the umbrella applicant for the
funds and provide technical assistance to all the communities.
Each year, unless the program changes, the city is provided the
opportunity to continue its participation or to drop out of the
program.
Clark Horn - Is it limited to construction type things or could you use it for
something like senior citizen transportation.
Larry Blacksted - No. Unfortunately we can't use it for services.
Mayor Hobbs - Would it be consistent with the plan to set up a taskforce either
comprised of staff or the Planning Commission to develop some
objectives and general guidelines and then held another public hearing
on those.
Larry Blacksted - It would be appropriate to do so. Our staff is available for
assistance. We would request that the City be in a position to
at least make a tentative decision by the middle of January
as to the use of the funds. Decisions in this program are not
cast in stone. There is an amendment procedure so if something
changes six months from now we are flexible enough to accommodate
that.
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Don Ashworth - With a program of this magnitude, it has been my sincere belief
that we would have a longer period of time to really look at some of
these needs. I think the Planning Commission and Council and a
number of groups should really be involved in that process. I had
forseen that we would be able to be eligible under the program but
not necessarily make a specific allocation for 1981 and be able to
during that planning period establish community goals over literally
the course of this next year.
Larry Blacksted - Given your somewhat unique status in this program we may be able to
accommodate that type of a direction. Right now I think we may be
able to do something along those lines to provide you that
necessary time to develop a more comprehensive program. I will
check it out and get back to Don with a couple courses of action.
Councilman Neveaux - Would it be possible to use these funds within the downtown
redevelopment district say for a senior citizens building.
Larry Blacksted - Given the nature of the redevelopment activity and putting money
into it, it is possible to do so. Although I am afraid I would
have to have more specifics.
Councilman Swenson moved to close the public hearing.
Neveaux. The following voted in favor: Mayor Hobbs,
Geving, and Swenson. No negative votes.
Motion seconded by Councilman
Councilmen Pearson, Neveaux,
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Council Meeting December 8, 1980
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PUBLIC HEARING
PARTIAL VACATION OF DRAINAGE EASEMENT
LOT 9, BLOCK 2, LOTUS LAKE ESTATES FIRST ADDITION
Mayor Hobbs called the hearing to order. No one was present. A petition was received
from Lake Minnetonka Homes, Inc. to vacate 2~ feet of a drainage and utility easement on
Lot 9, Block 2, Lotus Lake Estates. The existing home on the lot encroaches on the
easement by approximately 2~ feet. The City Engineer recommended that the City Council
reduce the width of the easement by 2~ feet. There is a storm sewer pipe running
through the remainder of the easement.
Councilman Swenson moved to close the public hearing.
Pearson. The following voted in favor: Mayor Hobbs,
and Swenson. No negative votes. Motion carried.
Motion seconded by Councilman
Councilmen Pearson, Neveaux, Geving,
PARTIAL VACATION OF DRAINAGE EASE11ENT, LOT 9, BLOCK 2, LOTUS LAKE ESTATES: Councilman
Pearson moved to vacate the westerly 2~ feet of the drainage easement as outlined in
the Certificate of Survey dated July 16, 1980. Motion seconded by Councilman Geving.
The following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Geving, and
Swenson. No negative votes. Motion carried. RESOLUTION 80-51A.
CONTINUATION OF PUBLIC HEARING HELD NOVEMBER 24, 1980
DOWNTOvm REDEVELOPMENT PROJECT
Mayor Hobbs called the hearing to order with the
Lois and Bill McRostie, 7015 Dakota
Herb Bloomberg, 7008 Dakota
Dennis Spalla, Kraus-Anderson
Don Kallestad, 431 West 78th Street
Conrad Fiskness, 8033 Cheyenne
John Boyle, Super Valu
T. A. and June Russell, 8037 Cheyenne
Joe Betz, 8107 Dakota
Harry Pauly, 7561 Great Plains Blvd.
John Przymus
Curt and Bobbie Huovie, 7381 Longview Circle
Donald Hanus, 225 West 79th Street
Barbara Gullickson, 830 Pleasant View Road
Gail Mathisen, 850 Pleasant View Road
Tim and Mrs. Clarence Peshek, 7605 Kiowa
Herb Mason
Bernard Schneider, 680 West 78th Street
Charles Schneider, 680 West 78th Street
Jerry Korsunsky
following interested persons present:
Al Klingelhutz
Dr. Don Kristenson, 421 West 78th St.
LueAnn Wallentine, 507 Chan View
Don Schmieg, 200 W. 77th St.
John Havlik
Russell Pauly
Gordon Freeburg, 3891 Lone Cedar Lane
Bjorg and Jerry Hendrickson
Marcy Kurimchak
Jerri Martin
Larry Buchheit
George Beniek
Leanna Forcier
Bernard Hanson
Don McCarville
Clark Horn
Tom Hamilton
Mr. and Mrs. Tom Krueger
Ed Dunn
Letters have been received from Instant Web, Inc., Frank Beddor, Jr., Klingelhutz-Cravens
Realtors, Chanhassen Secretarial Service, Chanhassen Chamber of Commerce, Pauly's, Inc.
Curt and Bobbi Huovie, Chanhassen Family Medical Clinic, B. C. Burdick, and Jack Kreger.
Don Schmieg,
Representing the Cenex Station - I would like to
the project. We were supposed to send a letter.
at our meeting and evidently it didn't get in.
go on record as opposing
We had talked about it
Tom Droegemueller - I would just like to make three comments. I think first of all that
these proceedings are making a travesty of the principle of democracy
and representative government because the people in this community
voted on November 4 for some representatives who presumably
represent their feelings about the issues and they are not going
to be allowed to make a decision. Secondly, I think we may be
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operating under felicitous notion that the introduction of
commercial development into a community will naturally lead to
the reduction of the residential tax burden and I think that it
is quite possible that the commercial development itself will I
create the demand for additional city services which outweigh
the benefits of the tax. Thirdly, I think that any programs
that utilize the government subsidized financing violates
the principle of a free market economy by encouraging
development before it is natural to take place. I think that
if development is meant to take place in Chanhassen it will
happen. It will happen at the right time in its own time.
Larry Buchheit, President of Chanhassen Chamber of Commerce - On the 25th the
Chamber passed a resolution in favor of the redevelopment. Since
then it has been brought to our attention that this represented
basically the core businesses in downtown Chanhassen. It was
recommended that we should go to the four corners of our community
and see what the residents had to say. Apparently the petition
that we put together has not reached Don's (Ashworth) desk but I
do have copies that I would like to have put in the record. This
petition is signed by 178 residents of Chanhassen and as I said they
are located in the four corners of our community. What it says is
that they are supportive of the redevelopment plan and encourage the
City Council to vote in favor of it.
Conrad Fiskness - I would like to preface my remarks by saying that recognizing
the fact that Chanhassen is going to develop I am not really
opposed and would not say anything later on that would present I
that I am personally opposed this particular plan recognizing
the fact there are no doubt problems that need to be resolved
and assuming that the Council can satisfactorily resolve problems
that would be connected with putting this thing together. I
would more than likely assume that these things can be resolved
adequately. What I really want to address, however, is an
issue which involves me as representing this area in the Riley
Purgatory Creek Watershed District. Since the last meeting
we have had opportunity for our technical advisor to review the
plans with the engineer for the City on this, BRW. We have
had a chance to go through this on a preliminary basis only and
I would like to further state that we have not had a chance to
meet as a board to discuss the findings and the findings are not
final. I have received communication from our advisor as to
two areas of concern that we feel would need to be addressed by
the Council and by the people who are developing this area. Number
one would be an area of sediment coming off of the parking lots
and streets and again our discussion on a preliminary basis with
the engineers, it was indicated that no doubt could be fairly
well handled as the further development of the plans were brought
forth. The sediment basin would obviously be designed to catch
sediment and also provide oil skimming capabilities to prevent
those impurities from reaching Rich Marsh Lake. The problem
of major consequence, as we see it, is moving the water from the I
downtown area to Rice Marsh Lake. This is going to be rather
substantial volumn as we see it. The fall from downtown to Rice
Marsh Lake is about 100 feet and the distance is about one-half
mile and this is a pretty significant fall. We would roughly
expect that the need of the pipe size to move the volumn of water
that will be going down there is going to be a minimum of 54 inches,
maybe greater. The amount of fall that you have is going to work
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Council Meeting, December 8, 1980
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also to your advantage in that you are going to move the volumn of
water faster. Currently, what you have going down to Rice Marsh Lake
is an open ditch. It is going to present a major problem in
stablizing that ditch when you have the volumn of water that you are
going to have going down here. In fact stablizing an open ditch,
in our opinion, would be questionable in view of the velocity and the
volumn that you are going to be moving and I would suspect that just
putting some rules of thumb to this thing, you are probably talking
it goes to a solution that would have the longest term benefit and
would be the most satisfactory over the long pull, which I am sure
that we really would want to be looking at, probably something in the
nature of $75 to $100 per foot and you are talking about half a mile.
That calculates to $195,000 to $260,000. So you are talking about
something between $200,000 and $300,000 to address this situation.
I would urge the Council to be aware of that because you are going to
have once chance to do that job right and that is up front at the
beginning here when this thing all goes in here.
BRW Representative - The issues of sedimentation and oil skimming, etc. were assumed in
terms of final design. Issues in order to satisfy the existing
regulations of the district. I don't think there are any concerns
or problems in that regard. The issue in terms of erosion or
erosion control in the ravine which is on the east side of Highway
101 going down to Rice Lake Marsh is something, as I understand it,
is a problem that exists today and has existed for some time and
the watershed district and the city have for some period of time,
I am told, they have been discussing opportunities or potentials
for correcting it. We did not and have not included correction
work in that ravine as a part of the project. It's not contained
in the materials that have been provided to you because based on
our preliminary inquiries some time ago, we were not made aware of
the fact that that was a problem. The in-place system which drains
from basically Highway 5 south along Highway 101 will be sufficient
for the water which is being discharged from the project taking
into account the retention that's going to be involved in the area
north of Highway 5. We did not, therefore, analyze erosion in the
remaining system downstream from the project because we felt that
we were not contributing additionally to the problems which existed
already. We did not view that it was the responsibility of this
project to correct those problems which did exist. The area of
the project does contribute water through that ravine as does
substantial other areas. At this point, if the watershed district
takes the opportunity presented to them by this project, that is
the project will have to get a watershed district permit regardless
of what we are doing in the way of improvements within the project
for drainage and grading and if the district takes the approach
that that is an opportunity in which they can then in effect force
correction of that existing problem I would see probably no choice
but to make that correction at that time. Who then should pay for
it becomes the next question. Is it solely a responsibility of
the downtown project or is it a larger responsibility in terms of
the total area that contributes water to that ravine where the
problem is.
Don Schmieg - How many people in the downtown area that are there now are going to
relocate in the ne~¡ project?
Russell Larson - Of those that we have approached, five that I know of. I have not
had time to contact everybody. There are some 42 owners and tenants
involved.
Don Ashworth - It has been the hopes of the HRA all the way through that there would
Council Meeting December 8, 1980
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be no business casualties. I don't think that's a fair question
from the standpoint there is a number of those uses that have all
the way along been stated that they should not be back in the I
downtown area. If you are talking about this type of development,
an area that's basically a retail shopping center, you should not be
looking at Chanhassen Electric with the number of trucks that they
are running to be located within this core area, the boat works
operation. I don't think that Bernie (Hanson) would be because he
has a high need for outside storage, maybe he would put it back
inside, I don't know. The chrome plating business would be better
in the business park. A majority of the businesses that are there
right now would not be relocated within the core area but, turn it
around, every business has been approached on the basis of staying
within the community either within the business park or within any
one of the other areas.
Don Schmieg - We have not been approached and given any place to go. We have said
yes, we would stay in Chanhassen. That's all we have been able to
deduct from anything so far.
Tom Droegemueller - I think community pride can be generated through ways other than
be encouraging a huge commercial development in the downtown
area.
Bill Loebl - I would like to make t,vo suggestions. Number one, since you are
outgoing City Council wouldn't it be preferable to let the new City
Council that is coming in make the final vote on this big project
because they will have to be the ones to live with it and that is
based on the second suggestion is the present economic conditions. I
Would the make a such a big project viable in the forseeable future.
Mayor Hobbs - Two of us are lame ducks. I have given that very question careful
thought. I feel very definitely that I should vote on this issue.
I think you are looking at a phased program that has gone six years
and possibly could go another six years to completion. I think it
is asking a large commitment of someone who started in the beginning
to stay an extra twelve to fifteen years up here so that we can
maintain the continuity of this project. In my own mind I felt that
where we are today represents one very distinct phase and if we
decide to go ahead with the project there are going to be several
issues in the future that are going to have to be brought to a
resolution. You don't put any kind of a package like this together
in one night. Getting approval is going to be contingent upon
finalizing other documents. I think today and I think for the past
couple of years it has been very hard for anyone to develop
economically any type of a large project alone. That's why the State
Legislature came up with the whole idea of tax increment financing.
It is not something that's unique to Chanhassen. Someone saw a problem
and he tried to come up with a way to address it.
Councilman Pearson - I have lived in Chanhassen for 21 years. I don't feel that I
am a newcomer to this community. I am very, very interested in
what's going on. I felt I have put in my time and it is time
for somebody else but I also don't think that I object to
making a decision even though it may be difficult at this time. I
Very possibly people would like a postponement of the decision
because they feel we might move one ·way and the people that are
going to be coming in will be voting the other way and I don't
feel that's a fair assumption either way. If the time comes
that we have to make a decision, I am ready to make it now.
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Jerri Martin - Is the question really what Dale wants, what Dick wants, what Walt wants,
what John wants, or what Pat wants or is the question what is really
best for our community. How you feel individually is fine. How you
feel about the community is another question.
Marcy Kurimchak - What consideration has been given to the businessmen in the area who
are renting and they have definitely provided services to the
residents in the area?
Russell Larson - We would visit with them and each of their businesses have been appraised
to determine what relocation benefits they would be entitled to in the
areas of the equipment that cannot be moved from their business place
and the cost of moving. There are a number of other benefits which we
can extend to them, including trying to find another location for them,
making certain other compensations for them depending upon where they
elect to locate. If some of those wish to stay within the downtown
district in the ring road they would, of course, have to contact
Kraus-Anderson and arrange a rental with Kraus-Anderson. If they were
going to go outside the ring road but stay in the tax increment district
they would have to contact someone who may be planning to construct
an office-warehouse structure within the district. We have not as yet
made any contact with specific tenants. We have advised them all that
those appraisals are available for them in City Hall. They are free
to take a look at them and then contact me with respect to what we can
do for them.
Councilman Pearson moved to close the public hearing. Motion seconded by Councilman
Geving. The following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Geving,
and Swenson. No negative votes. Motion carried.
DOWNTOWN REDEVELOPMENT PROJECT:
RESOLUTION #80-52: Councilman Neveaux moved the adoption of a resolution authorizing
the public improvement project for the downtown redevelopment area as outlined in the
feasibility study dated November 4, 1980, and directing the consultant firm of BRW to
not move towards preparation of plans and specifications no earlier than the meeting of
December 15, 1980, at which time additionally the project will be moved ahead only
upon successful acceptance by the City of development contracts between the City and
Kraus-Anderson as redeveloper and Bloomberg Companies, Inc. as developer and Instant
Web, Inc. as a major redeveloper within the downtown redevelopment area. Resolution
seconded by Councilman Pearson. The following voted in favor: Mayor Hobbs, Councilmen
Pearson, Neveaux, Geving, and Swenson. No negative votes. Motion carried.
MINUTES:
seconded
Pearson,
Councilman Neveaux moved to table action on approval of the minutes. Motion
by Councilman Geving. The following voted in favor: Mayor Hobbs, Councilmen
Neveaux, Geving, and Swenson. No negative votes. Motion carried.
DON KALLESTAD, PONY EXPRESS BAR, LIQUOR LICENSE APPLICATION: Mr. Kallestad was present
seeking approval of an on sale and off sale intoxicating liquor license to open a bar
at 431 West 78th Street. Mr. Kallestad was told this would be on the December 15, 1980,
Council agenda.
HOMBRE'S BAR, STIPULATION FOR SETTLEMENT: Councilman Neveaux moved the acceptance of the
Stipulation Agreement and the Mayor and City Manager be directed to sign. Motion
seconded by Councilman Swenson. The following voted in favor: Mayor Hobbs, Councilmen
Pearson, Neveaux, Geving, and Swenson. No negative votes. Motion carried.
LOW WATER PRESSURE, 3883 FOREST RIDGE CIRCLE: Mr. and Mrs. Bernhardt were present
to state they have low water pressure in their new home in Troll's Glen Fourth Addition.
They have had to install a pump and requested that the City pay for the equipment,
repair and maintain it. This item will be on a future Council agenda.
Council Meeting, December 8, 1980
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REPLAT LOT 7, BLOCK 3, CHANHASSEN ESTATES FIRST ADDITION:
to table action. Motion seconded by Councilman Neveaux.
favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Geving,
votes. Motion carried.
Councilman Geving moved
The following voted in
and Swenson. No negative
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THOMAS JOHNSON VARIANCE REQUEST, LOT 14, BLOCK 4, RED CEDAR POINT: Mr. and Mrs.
Johnson are requesting variances to construct a home in place of the existing cabin
at 3629 Red Cedar Point Drive. The following variances are required to the
Shoreland Management Ordinance and the R-l District requirements of Ordinance 47:
1. 12 foot front yard variance.
2. 3 foot side yard variance on both sides.
3. 30 foot lot width variance.
4. 40+ foot lot frontage variance.
5. 13,000 square foot lot area variance.
The Board of Adjustments and Appeals recommended approval of the variances.
Councilman Neveaux moved to grant approval to the Thomas and Linda Johnson variance
request for Lot 14, Block 4, Red Cedar Point as shown on Exhibit A of the Planner's
report. Motion seconded by Councilman Geving. The following voted in favor: Mayor
Hobbs, Councilmen Pearson, Neveaux, Geving, and Swenson. No negative votes. Motion
carried.
LETTERS OF CREDIT REDUCTION REQUEST FOR .CHAPARRAL FIRST, SECOND, AND THIRD ADDITIONS:
Councilman Swenson moved to table action. Motion seconded by Councilman Neveaux. The
following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Geving, and
Swenson. No negative votes. Motion carried.
201 WASTE MANAGEMENT ALTERNATIVES PROGRAM, JOINT POWERS AGREEMENT: Virginia Harris I
was present requesting comments from the Council on the Joint Powers Agreement.
Comments should be sent to her by December 15. The City Attorney will review the
agreement. Carver County will be interviewing for a consulting engineer to cOTI~lete
Step 2 of the 201 Program on December 18. Councilman Pearson will represent the
Council at these interviews.
COUNCIL TOUR: Council members will tour various projects throughout the City on
December 20, 1980, at 9:00 a.m. from City Hall.
CONSENT AGENDA: Mayor Hobbs asked if any members wished to discuss any items on the
consent agenda. As there were no further comments, Councilman Geving moved to approve
the consent agenda as recommended by the City Manager:
a. Authorization to advertise for bids, Watermain Extension for Phase II,
Chanhassen Lakes Business Park Public Improvements.
b. Designate December 26th as an official holiday.
c. Authorize Resolution setting the diseased tree budget for 1981.
RESOLUTION 80-53
Motion seconded by Councilman Pearson. The following voted in favor: Mayor Hobbs,
Councilmen Pearson, Neveaux, Geving, and Swenson. No negative votes. Motion carried.
Councilman Pearson moved to adjourn. Motion seconded by Councilman Neveaux.
following voted in favor: Mayor Hobbs, Councilmen Pearson, Neveaux, Geving,
Swenson. No negative votes. Meeting adjourned at 11:45 p.m.
The
and
Don Ashworth
City Manager
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