1982 10 07
I
I
I
Minutes
Special City Council Meeting with Planning Commission and Housing
and Redevelopment Authority
Thursday, October 7, 1982
7:30 p.m., City Council Chambers
Present:
City Council: Hamilton, Neveaux, Geving, Swenson, Horn
Planning Commission: Conrad, Watson, M. Thompson, H. Noziska
Housing & Redevelopment Authority: Bohn, Russell, Whitehill, Horn
Staf~: Ashworth, Martin
CALL TO ORDER: Mayor Hamilton called the meeting to order at
7:30 ~m. and explained that the purpose of this special meeting
was to determine the current status of the Downtown Redevelopment
Project. He also acknowledged the presence of Don Ringrose of
BRW, Inc., the City's Planning and Engineering Consultant on the
project.
KRAUS-ANDERSON STATUS REPORT: Dennis Spalla of Kraus-Anderson
was present to update local officials on the status of their
development plans. He said that recent improvement in interest
rates improved the financial outlook for their portion of the
project, but added that only a smaller phase I development would
be feasibile in light of local retail market conditions.
He introduced Ron Krank of Korsunsky, Krank, & Erickson
Architects, Inc., who presented two proposed concept plans for
Kraus-Andersons's development. Both concepts provided for a
first phase of approximately 46,000 square feet of leaseable
retail space, including a 10,000 - 15,000 square foot grocery
store and an 8,000 square foot drug store. A planned second
phase would add another 50,000 square feet of retail space in
front of Phase One. The project would be constructed to the
north of the concrete portion of the Instant Web Building, and
would require demolition of the wood-frame portion of this struc-
ture. Phase One public improvements would be minimal under
eitheL alternative plan. Spalla indicated that a Spring, 1983
construction start might be considered if plans are approved in a
timely manner.
Geving said that he supported the idea of keeping phase One
public improvement costs to a minimum, as would be possible under
either Phase One alternative.
Swenson urged the Council to strongly consider the option of con-
verting the Instant Web building to a Community Recreational
Center, especially since Kraus-Anderson has presented no specific
plans for use of the back portion of the building.
Cliff Whitehill felt that special attention should be directed
towards reuse of the Instant Web building during phase One nego-
tiations, since the City made a substantial investment in the
property for the purpose of converting it into a use which is
compatible with the downtown business district. He suggested
that part of the building be utilized for the grocery store.
SPECIAL JOINT MEETING MINUTES - October 7, 1982
-2-
BLOOMBERG COMPANIES STATUS REPORT: Herb Bloomberg presented a
brief update on the status of his Company's financial condition
and reiterated his support of the adopted Downtown Redevelopment
Project Plan. He said that he still believes that there is a
need for an 80-120 room Hotel in downtown Chanhassen, and that
Bloomberg Companies is still interested in participating in the
future development of the downtown. He stressed the importance
of the southern portion of the planned ring road, especially inso-
far as improving the design image of downtown.
I
Bill McRostie of Bloomberg Companies said that they could live
with either of the two alternatives presented by Kraus-Anderson.
He added that some advantageous use must be made of the back por-
tion of the Instant Web building in a very early phase of redevel-
opment if the overall plan is to succeed. He said that
Bloomberg Companies would have no problem "in principle" with a
Kraus-Anderson development on the site of the Frontier building.
Tim Russell suggested complete demolition of the Instant Web
building as a viable alternative which should be considered when
options are developed in the near future.
Hamilton said that the City is still committed to the Downtown
Project and that he is very enthusiastic about the project. He
said that the City and both developers must begin immediately to
look towards specific options and reach agreement on the respon-
sibilities of each party.
I
Amendment as per October 18, 1982 City Council minutes: Concerns
were raised about the perception that development was proceeding
in adjoining cities and in the business park, but people are
becoming frustrated because nothing is happening in the downtown
area.
Horn asked if the City could do anything to help Kraus-Anderson
secure tenants for the project. Spalla replied that the full
support of the City in terms of redevelopment assistance would be
the most helpful. He added that Kraus-Anderson will need signed
leases with both supermarket and drug store tenants before the
development can proceed.
Amendment as per October 18, 1982 City Council minutes: The
general sentiment of the city officials in attendance at the
meeting was that the City should continue to support business
redevelopment activities as long as they are economically
feasible.
Hamilton suggested that a Redevelopment Project Steering
Commi_tee be established to work with the staff, consultant, and
both è~velopers in the formulation of specific options and to
reach a consensus position on a specific revised plan that would
be acceptable to both developers and the City. He recommended
that the Mayor and Chairpersons from both the Planning Commission
and HRA be appointed to such a Committee.
I
I
I
I
SPECIAL JOINT MEETING MINUTES - October 7, 1982
-3-
BLOOMBERG COMPANIES STATUS REPORT, CONTINUED:
Following a brief discussion, the Council agreed to establish a
steering committee as recommended by the Mayor.
RESOLUTION #82-62: PERTAINING TO CITY REVIEW OF METROPOLITAN
COUNCIL'S REVISED TRANSPORTATION PLAN: Neveaux moved, seconded
by Horn, to adopt Resolution #82-62 pertaining to the revised
"Transportation Development Guide/Policy Plan for the Year 2000"
as prepared by the Metropolitan Council. All voted in favor and
the motion carried.
ADJOURNMENT: The meeting was adjourned at 9:30 p.m.
Don Ashworth
City Manager