1981 04 13
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SPECIAL CHANHASSEN CITY COUNCIL MEETING APRIL 13, 1981
Mayor Hamilton called the meeting to order at 7:30 p.m. with
present: Councilmen Geving, Horn, and Councilwoman Swenson.
at 7:45 p.m.
the following members
Councilman Neveaux came
QUOTATION TO REFURBISH WELL #3: Councilman Horn moved toapprove the following
quotes for the upgrading of well #3 and installation of chemical feed equipment.
F. F. Jedlicki, Hydropneumatic tank removal and
mechanical equipment 6,500
Bergerson-Caswell, Inc. New pump, motor and
appurtenances 7,350
Tonka Equipment Company, Chlorination and
fluoridation equipment 2,609
Pierson-Wilcox Electric Company, Install
electric meter and receptacles for the
chemical feed pumps 1,200
Midwest Underground, Inc. Televise existing well
and furnish video tape 1,000
Motion seconded by Councilman Geving. The following voted in favor: Mayor Hamilton,
Councilwoman Swenson, Councilmen Geving and Horn. No negative votes. Motion carried.
DOWNTOWN REDEVELOPMENT PROJECT, DEVELOPMENT CONTRACTS: Scott Martin presented the
staff report on Instant Web Purchase Agreement. Councilman Neveaux explained that
the council's action of March 30, 1981, regarding Instant Web was intended to help
the City Attorney only as a straw vote, and was not necessarily the bottom-line
position of the City. He felt that both parties should be prepared to compromise
their positions at this point in the negotiations.
Mayor Hamilton thought that the council action of March 30, 1981, was official
council action, not just a straw vote.
Cquncilman Geving stated that the Park One issue must be considered as an entirely
separate issue from the Instant Web Purchase Agreement.
Councilman Horn expressed concern that rent-free use of IW could set a precedent
for other acquisitions for the downtown project, but that he could live with this if
a similar choice was available to all other relocated by the HRA.
Councilwoman Swenson said that the rent issue and the business incentive program
represented trade-offs for businesses being relocated.
Councilman Neveaux agreed that the Park One is a separate issue from the IW Purchase
Agreement, but felt that the only real remaining issue in the IW agreement is that of
rent.
Jerome Carlson, IW representative, reviewed the history of contract preparation and
that IW had always included Park One issue in their position. He said that Park One
could be dealt with under separate agreement and that only the rent issue remained.
City Attorney Larson explained that IW prepared the initial contract, without city imput
until January 1981.
Frank Beddor, IW representative, reviewed the basis for rent-free occupancy of the
existing building, and detailed the negotiations for the city's purchase of their
property. He said that financing has been arranged for their new building and a
construction contract with Kraus Anderson is signed. He said that IW is ready to sign
a separate agreement for the sale of IW and the development of Park One. He said that
IW would be ready to move into their new building within one year of the issuance of a
building permit.
Council Meeting April 13, 1981
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Councilman Geving moved for official council reconsideration of the Instant Web
rent issue to allow for a IS-month rent-free ~eriod from date of closing of the
sale, with $30,000 rent per month after the IS-month period expires. Motion I
seconded by Councilman Neveaux. Councilman Neveaux felt that a 12 month period for
IW to be in their new facility would be in the best interests of both parties.
The following voted in favor: Mayor Hamilton, Councilwoman Swenson, Councilmen
Neveaux, Geving, and Horn. No negative votes. Motion carried.
Mayor Hamilton instructed the City Attorney to prepare the revised IW for
execution by both parties by May 4, 1981.
Frank Beddor stated that he would agree to sign the purchase agreement as revised
and accepted by the City Council in their motion.
Scott Martin presented a report on the Kraus-Anderson Agreement.
Councilman Geving felt that the City should stand firm on requiring KA to share in
the courtyard maintenance costs.
Councilman Neveaux asked if the City Manager had prepared any cost estimates for city
maintenance of the courtyard. Don Ashworth replied that such figures had not been
generated. The City Manager recommended council approval of the KA agreement
contingent upon signing of the IW agreement, in order to avoid having to being the
KA agreement back for more discussion. Loren Knott, Attorney for KA, said that KA
has consistently resisted the idea of picking up courtyard maintenance costs due to
the overall rental costs that their tenants will be faced with in their project.
Councilman Geving suggested a lump sum payment as an incentive to KA in exchange
for maintenance of the courtyard. Mr. Knott said that they are open to a redesign
of the courtyard to make it easier to maintain. Bill McRostie of Bloomberg
Companies, agreed to consider a redesign if necessary.
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Councilman Neveaux moved to accept KA agreement dated March 2S, 1981, signed by
KA, subject to execution of IW agreement and Bloomberg Companies agreement.
(Maintenance clause not included in final KA agreement.) Motion seconded by
Councilman Horn. The following voted in favor: Mayor Hamilton, Councilwoman
Swenson, Councilmen Neveaux, Horn, and Geving. No negative votes. Motion carried.
Scott Martin presented a report on the Bloomberg Companies ~greement.
Councilman Geving moved to accept Bloomberg Companies agreement dated April 13,
1981, signed by BC, contingent upon limiting Section 3.7 to a hotel and subject
to execution of IW agreement and KA agreement. Motion seconded by Councilman
Neveaux. The following voted in favor: Mayor Hamilton, Councilwoman Swenson,
Councilman Neveaux, Geving, and Horn. No negative votes. Motion carried.
FINAL DEVELOPMENT PLAN, CHAPARRAL ON LAKE ANN: Ed Dunn, Greg Frank, Bill Jensen,
and Paul Krauss were present. Bob Waibel presented the staff report. Paul Krauss
of BRW explained the proposed changes to the plan. Setbacks have been varied
throughout the development. Clustering does exist in parts of the development
to the extent that it is possible. Aztec Drive and Potomac Drive are proposed
to be 32 feet in width with the remainder of the streets at 28 feet. The
developer has indicated that lakeshore lots will likely be sold to independent
developers or will be used for spec homes erected by New Horizon.
Several council members expressed concern about the low percentage of single
family homes proposed in this development. Greg Frank stated that single family
homes are not selling at this time.
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Council Meeting April 13, 1981
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Mayor Hamilton moved to table action to May 11, 1981. Motion seconded by Councilman
Geving. The following voted in favor: Mayor Hamilton, Councilmen Geving and Horn.
Councilwoman Swenson and Councilman Neveaux voted no. Motion carried.
Councilman Geving moved to
following voted in favor:
Geving, and Horn. Meeting
Don Ashworth
City Manager
adjourn. Motion seconded by Councilwoman Swenson. The
Mayor Hamilton, Councilwoman Swenson, Councilmen Neveaux,
adjourned.
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