1981 03 16
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REGULAR CHANHASSEN CITY COUNCIL MEETING MARCH 16, 1981
Mayor Hamilton called the meeting to order with the following members present:
Councilmen Geving and Horn. Councilmen Neveaux and Swenson were absent. The meeting was
opened with the Pledge to the Flag.
APPROVAL OF AGENDA: Councilman Horn moved to approve the agenda as presented with the
following additions: Debris in Kenny's Parking Lot, Check List, Review of City
Buildings, Overlay District for Redevelopment Project, discussion of meeting with
Instant Web on March 13. Motion seconded by Councilman Geving. The following voted in
favor: Mayor Hamilton, Councilmen Geving and Horn., No negative votes. Motion carried.
AWARD OF BIDS - CABINETRY FOR LIBRARY, CITY HALL, AND PUBLIC WORKS BUILDINGS: Three
bids were received with Bloomberg Companies being the low bidder in the amount of
$21,785.00.
Councilman Geving moved to award the bid to Bloomberg Companies in the amount of
$21,785.00 for cabinetry for the City Hall, Library, and Public Works Buildings. Motion
seconded by Councilman Horn. The following voted in favor: Mayor Hamilton~ Councilmen
Geving and Horn. No negative votes. Motion carried.
MINUTES: Councilman Horn moved to approve the March 2, 1981, Council minutes. Motion
seconded by Councilman Geving. The following voted in favor: Mayor Hamilton, Councilmen
Geving and Horn. 'No negative votes. Motion carried.
CONSENT AGENDA: Mayor Hamilton asked if council members wished to discuss any items
on the consent agenda. As no additional comments were received, Councilman Geving moved
to approve the consent agenda pursuant to the City Manager's recommendations:
a. Upgrading of Existing Highway 2l2/l69.~ ~~ 3í-Ðfp13
b. Set Special Meeting Date, April 4, 1981, at 9:00 a.m. to tour various public
improvements.
c. Lotus Lake Community Park, Amend Grant Application.
d. Set Special Meeting Date, Board of Equalization, June 8, 1981.
Motion seconded by Councilman Horn. The following voted in favor: Mayor Hamilton,
Councilmen Geving and Horn. No negative votes. Motion carried.
REVIEW NEW COUNTY ROAD 18 ALIGNMENT ALTERNATIVES: Pat Murphy, Don Wisniewski, Mark
Koegler, and Luke Melchert were present. Council members discussed previous actions
taken by the Council in reviewing overall county road systems. Attention was given to
potential new alignments as it would extend westerly from Galpin Blvd. to State Highway
41. The City Manager was instructed to set up a meeting with the Chaska City Council
to discuss possible alignments. The joint meeting was tentatively set for March 30,
1981.
MUNICIPAL WELL #3 RENOVATION: Jim Orr presented a report on the work necessary to
renovate Well #3 and approximate costs associated with the renovation.
Councilman Horn moved to authorize staff to take the necessary steps to renovate
Well #3 and adopt the modified budget (Option 2) per the Manager's report of March 16,
1981. Motion seconded by Councilman Geving. The following voted in favor: Mayor
Hamilton, Councilmen Geving and Horn. No negative votes. Motion carried.
SORENSON DEVELOPMENT PROPOSAL, WEST 79TH STREET: Mike Sorenson was present asking
about the status of the HRA downtown project as it relates to his property on the
corner of West 79th Street and Great Plains Blvd. Mr. Sorenson was told that various
alternatives will be prepared in terms of his ability to develop his property
depending upon the Council's decision regarding the HRA project.
Council Meeting March 16, 1981
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BILLS: Councilman Geving moved to approve the bills as presented: Checks #12475
through #12546 in the amount of $974,188.09 and checks #16314 through #16381
in the amount of $191,404.84. Motion seconded by Councilman Horn. The following
voted in favor: Mayor Hamilton, Councilmen Geving and Horn. No negative votes.
Motion carried.
CABLE TELEVISION ALTERNATIVES: Mayor Hamilton reviewed the results from the
newsletter in regards to cable television. Mayor Hamilton asked that a new member
be appointed to replace him on the Cable TV Advisory Board.
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INDUSTRIAL REVENUE BOND CRITERIA: The City Attorney reviewed various proposed
changes to the Industrial Revenue Bond Criteria. The City Manager recommended
the Council charge a placement fee of one or two points, less any amount previously
paid by an applicant.
RESOLUTION #81-07: Councilman Geving moved the adoption of a resolution recinding
Resolution #78-74 and adopting a Resolution Establishing Industrial Development
Revenue Financing Criteria as submitted by the City Attorney and as amended March 16.
9. Upon and issuance and sale of the debt obligation, whether in the form of
bonds, a mortgage revenue note or similar obligation, the applicant shall
pay to the City an administrative fee of two points of the principal amount
of the obligation to reimburse the City for debt administration expenses over
the term of the bond issue, less any amount heretofore paid by the applicant
under the provisions of Section 8 hereof.
Resolution seconded by Councilman Horn. The following voted in favor: Mayor
Hamilton, Councilmen Horn and Geving. No negative votes. Motion carried.
KENNY'S PARKING LOT: Councilman Geving noted the debris in the parking lot. I
The City Manager was instructed to write a letter to the owner's of the shopping
center requesting them to clean it up.
CHECK LIST OF UNRESOLVED ITEMS: The City Manager was instructed to establish a
running check list of unresolved items.
REVIEW OF CITY BUILDINGS: Councilman Horn will discuss items not completed or
items that were changed during construction with Jack Boarman.
OVERLAY DISTRICT, HRA REDEVELOPMENT DISTRICT: Councilman Horn expressed concern
as to when the Planning Commission will be presented with the overlay district and
if the Planning Commission will be allowed to express their ideas.
MEETING WITH INSTANT WEB REPRESENTATIVES: Mayor Hamilton discussed a meeting held
March 13 with representatives of Instant Web. Anothe~ TIleeting is tentatively
scheduled for March 23.
Councilman Geving moved to adjourn. Motion seconded by Councilman Horn. The following
voted in favor: Mayor Hamilton, Councilmen Geving and Horn. No negative votes.
Meeting adjourned at 11:45 p.m.
Don Ashworth
City Manager
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SPECIAL CHANHASSEN CITY COUNCIL MEETING - March 30, 1981
Mayor Hamil ton called the meeting to order with the following members present:
Councilmen Geving, Horn, Neveaux and Swenson. The meeting was opened with the
Pledge of Allegiance.
OOWNTOWN REDEVELOPMENT PROJECT: The City Manager presented a brief status report
on the developnent contract negotiations with Kraus-Anderson and Bloomberg Ccrnpanies.
Dennis Spalla, representing Kraus-Anderson, presented the eity with executed contracts
for the Kraus-Anderson portion of the downtown project. The Council briefly discussed
both contracts, but no specific action was taken.
Fran.l{ Beddor, representing Instant Web, was present to discuss his company's concerns
over the contract offered by the City for acquisition and relocation of Instant Web.
He requested a separate agreement with the City that assured Instant Web that the
City would construct all necessary public improvements in Park One within 18 months
after receiving a request for same by Instant Web. The cost of constructing such
improvements would be financed 100% by tax increment revenues generated within the
Park One tax increment financing district.
Mr. Beddor also told the Council that the construction period for a new Instant Web
facility has been reduced from 15 to 12 months fran the date a building permit is
issued by the City. He requested that Instant Web be allowed rent-free use of their
current building during the l2-rocmth construction period.
Councilman Geving stated that the Park One developnent and the relocation of Instant
Web to the schmieg property were always considered by the City as two separate issues
that should not be tied together during acquisition negotiations. He supported
developnent of Park One, but not as a part of the acquisition contract.
Bill McRostie, representing Blocmberg Cœ1panies, stated that he is optimistic that
an acceptable agreement can be worked out, and will attEmpt to present a signed contract
to the City on April 13 which will hopefully be acceptable to the City Cooocil. He
added that Blocmberg Canpanies were concerned that their agreement meshed with the
Kraus-Anderson contract.
Spalla explained that the executed Kraus-Anderson contract does not provide for
developer maintenance of the public courtyard area, as requested by the City.
JOJNT MEEI'ING WITH CHASKA CITY COUNCIL - REVIEW ALIGNMENT ALTERNATIVES FOR NEW
COUNTY ROAD 18 (LYMAN BLVD) : . Members of the Chaska City Council and City Staff
arrived at the meeting at this time to discuss the construction of County Rd. 18
(Lyman Blvd.) between Highway 41 and Highway 101. Pat Murphy, Carver County Engineer,
presented the proposed alignment alternatives and construction schedules under
consideration.
It was agreed by both cities to consider a fm:mal resolution establishing criteria
to be used by the County in further studies related to the feasibility of Route
Alternatives 3 and 4. A resolution will be brought before the Council at the next
meeting for adoption.
REVIEW OF JNSTANT WEB CONTRACT NEGOTIATIONS: Assistant City Attorney, Craig Mertz,
asked the Council for a II straw-vote II on each of the remaining issues raised by Instant
Web in the City's proposed purchase agreement, as outlined in City Attorney Russ
Larson's letter of March 27, 1981.
SPECIAL COUNCIL MEETING - March 30, 1981
Issue No.1: By a 4 to 1 vote (Mayor Hamilton was the dissenting vote) the
Council agreed that the City could enter into a contract with
Instant Web legally obligating the municipality to install I
sanitary sewer and water lines and streets within Park One within .
18 months after so requested by the Park One owners, provided that:
a) Instant Web has completed the normal planning and platting
proçess, b) that this agreement is in a separate document and c)
that the signing of the sale agreement for the Instant Web agreement
is not contingent upon the City signing this agreement concerning
the Park One utilities.
Issue No.2: By a 5/0 vote, the City Council declined to enter into any sort
of contract with Instant Web whereby the City agreed that Park One
would not be assessed for necessary public improvements.
Issue No.3: By a 4/1 vote (Neveaux was the dissenting vote) the City Council
directed that Instant Web be given free rent for a six-month period;
in the seventh month Instant Web would catmence paying rent at the
rate of $30,000.00 per month~
Issue No.4: By 5/0 vote the City Council agreed that Instant v.Teb would not be
paid the $330,000.00 which it formerly demanded.
Issue No.5: By a 5/0 vote the City Council indicated that the letter of guarantee
could be deleted if a third party beneficiary position could be
negotiated for the municipality. 'This approval was subject to the
contingency that the City Council be allowed to review and approve _1.-
the specific wording of the necessary agreements with the Instant Web
lender.
Issue No.6: Ci ty Council indicated that Instant Web would have to proceed with the
usual planning and platting processes for the Schmieg property and
that the Instant Web owners should not ass1.1f[)2 that the City would create
any road blocks.
Issue No.7: City Council by a 5/0 vote indicated that Instant Web could be paid
its relocation money at the closing as opposed to at the tllne of the
actual move.
Councilman Horn expressed concern about setting precedents for negotiations with
other owners of property to be acquired by the City if special considerations are glven
to Instant Web.
'The Council directed the City Attorney to draft a separate agreement for Park One
improvements for Council review on April 13, 1981. Such agreement should incorporate
the Council's position as discussed in issues 1 and 2 above.
'The meeting was adjourned at 11: 45 p.m.
Don Ashworth
City Manager
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