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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