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News Alley ~/ ~ Public Safety Department · Still no definite installation date on sirens. This year's unprecedented storms have thrown a wrench in lots of things, including sirens. While our five may be delayed, I'm assured they will be in this year. · Todd Gerhardt, Steve Kirchman, Steve Torrell and I had a great meeting with the State Building Division to seek input on how other cities are doing inspections, etc. More to share with you on this in the near future. · Thanks for supporting the Safe and Sober and Drug Task Force resolu- tions. Representatives from both organizations, along with the deputy handling tobacco compliance checks, will be at the August Public Safety Commission meeting. If you wish, please join us! · Our summer bicycle patrol pro- gram is now officially underway, most often with Kerri and a deputy working together. Not only is this an exciting new way to interact with the public (community oriented policing), but it's yet another joint city/county effort. · At the August Public Safety Commission meeting, we will also discuss the I 999 police contract, which I anticipate will result in an unprecedented "no-increase" in patrol hours for 6 years in a row! Updates from City Hall--July 29, 1998 Planning Department . The Chanhassen Garden Club will be hosting its first official meeting on Tuesday, August 11 at 7 p.m. in the Council Chambers. The volunteer group hopes to establish public flower gardens throughout the downtown area as well as organizing plant exchanges, tours, and speakers. The non-profit group will be seeking funds for their projects from various com- munity sources such as the Lions, Chamber of Commerce, local busi- nesses, and the city, in addition to operating fund-raising events such as plant sales, classes, etc. Anyone interested in more information can contact Jill Sinclair at ext. 150. . In order to allow Chapel Hill Acad- emy to place the temporary structures on the Old St. Hubert Church site and issue a building permit, staff needed a Registered Structural Engineer to sign the plans. The Engineer signed the plans after requiring the applicant to show 80 pilings/footings to support the structure (this was the Registered Engineer's requirement and not City Staft). Staff received a phone call from the property owners residing northeast of the subject property (The Schroeders). They expressed ex- treme concern that such footings have the potential of allowing the structure to become permanent. Staff ex- plained that we cannot guess how the City Council is going to vote, however, we reassured the property owners that the Planning Commission and City Council were very clear about ~ the temporary structure being TEMPORARY and they had no intention of approving an extension t the Interim Use Permit beyond the approved five years. The second concern raised by the Schroeders dealt with underground drainage. They currently use a sump pump during the wet season to keep their basement dry. There is existing field tile that contributes to draining the area properly. This tile is located in the vicinity of the pilings. The concern stems from the fact that at the time the pilings are removed, the field tiles will be disturbed and their basement will flood. Staff explained that we will investigate the matter and bring it to the developer's attention to ensure the natural drainage is maintained. Also, now that staff is aware of this situation, we will make sure that at the time when Chapel Hill Academy applies for their expansion, we will add a condition that when the pilings are removed, the field tiles are not disturbed. Administration · Attached is Todd Gerhardt's report on the PRN Tax Appeal Legal/Appraisal Fees. · Attached is an updated work session schedule. · Attached is a memo from South- west Corridor Transportation Coalition. Public Works/Engineering · Attached is a letter from Hennepin County re: Highway 101 Project status. CITY OF CHANHASSEN 690 City Center Drive, POBox 147 Ganbassen, Minnesota 55317 Pbone 612.937.1900 Gmeml Fax 612.937.5739 Engineering Fax 612.937.9152 Public Safety Fax 612.934.2524 \¥fb /l'Il'll'.cl.c/;tluIJilSSfll./III/.1IS . MEMORANDUM TO: Don Ashworth, City Manager FROM: Todd Gerhardt, Asst. City Manager DATE: July 28, 1998 SUBJ: PRN Tax Appeal Legal/Appraisal Fees As per the City Council's request, I have outlined the PRN tax appeal legal/appraisal fees. For 1998, staff had budgeted approximately $20,000 for additional legal costs to defend the PRN tax petitions (see attachment 1998 Budget Commentary). This did not include Mr. Bakken's appraisal fee of $22,900. Back in May of 1996, the HRA approved the attached Tax Appeal Defense Agreement which stipulated the HRA agreeing to cover the first $25,000 in appraisal costs and up to $5,000 for expert witness preparation and testimony, including, but not limited to the appraiser (see Attachment #2). The minutes of May 16, 1996 reflect that Kennedy and Graven's estimate to defend the city's position was $8,000 to $10,000 (see Attachment #3). During our 1998 budget process, staff saw the need to add another $20,000 to this estimate, which the EDA approved as part of the 1998 budget. The minutes of May 16, 1996 also show that the estimate for the PRN tax appeal at that time was approximately $40,000. Therefore, by adding the additional $20,000 for legal costs, staff came under budget by $7,800. Ifit was not for the work ofMr. Bakken/Mac LeFevere, I feel we would not have seen the settlement numbers we did. Mr. Bakken is a very reputable appraiser who in the past six months has worked with the following Fortune 500 companies: United Healthcare; Tennant Co.; General Mills; Ford Motor Co.; etc. As for the court settlement, the EDA will see the following additional tax dollars: Additional Taxes Payable '95 $20,300 Payable '96 *$59,270 Payable '97 $29,000 Payable '98 $34,800 Payable '99 $40,600 Total $183,970/ $36,794 per year * We were successful in having the court throw out the Payable '96 tax appeal because of non-payment of taxes for 1996. The City o[Cbflllhassfll. A growing communit)' with (Ieilll lakes, quality schools, fl chmming downtown, thriving bu5ÎneS:ies, and beautiful parks. A great place to Ii/ie, work, and play I· t ,~ i t , :f i , :~ .~ 1 Î I tj ì t I f f I j I j I I il Mr. Don Ashworth July 28, 1998 Page 2 Total Costs To-date: Attornev Costs Appraisal Fees Total $25,700.00 $26,500.00 = $52,200 Based on the efforts of Mr. Bakken, Mac LeFevere, Mike Fahey, Odin Schafer, and Pat Stark, we were able to generate approximately $131,770 in additional taxes for the City of Chanhassen. Attachment I. 1998 Budget Commentary. 2. Tax Appeal Defense Agreement 3. HRA Minutes dated May 16,1996. g:\admin\tg\pm appeal fees. doc CITY OF CHANHASSEN 1998 BUDGET Commentary Tax Increment District #1-460 Mission and Current Services: This fund is included in the 1998 Budget for notalional purposes only. This operating budget. per state law, is officially adopted by the Economic Development Authority. Should funds be necessary over and above the tax increments generated within the district, or should the.EDA propose to establish a general level of taxation/require bonding, their budget would require action by the City Council. As City personnel maintain the accounting records for both the EDA as well as the Cily funds, one source documenl is desired to review overall accounting activities. Budget Highlights: The Economic Development Authority adopts a yearly work program which outlines in detail the specific revenue/expenditure levels proposed for the current year. The EDA's "Revenues, Expenditures, and Cash Flow Analysis· describes the specific revenues/expenditures shown in the budget book and is hereby adopted by reference. Generally, Fund 460 acts as the parent fund to control Ihe numerous activiJies currently being engaged in by the EDA, For example, the Economic Development Authority has underwritten the expenditures associated with various public improvement projects within the downtown area and business park. Each of these projects are a separate fund in and of themselves. Each fund requires a specific debt payment to be paid each year during the course of the next 5-10 years. Recognizing that Fund 460 is the parent fund, all tax increments are receipted into this master fund. Similarly, all current and future debt transfers are shown within the parent fund as a proposed transfer out in the year necessary to cover the expenditure associated with that particular project. In addition to making payments for debt service funds, the parent fund also accounts for payments made as incentives to businesses locating within the community, paying administrative costs associated with the Economic Development Authority. and completing acquisitions of parcels within the downtown area in accordance with the Redevelopment Plan, Prior to the formation of Tax Increment District No.1, less than 1% of Chanhassen's valuation was commerciaVindustrial. Today, nearly 20% of the valuation is commerciaVindustrial. By the time the district ceases, it is anticipated that at least 30% to .40% of Chanhassen's total valuation will be commerciaVindustrial. This diversification will significantly benefit Chanhassen's ability to meet future local needs while not creating a tax burden during the period that the valuation is being generated, Expenditures: Personal Services & Commodities represent a proportional share of the associated costs of the "key personnel" involved in the general and financial administration of the fund. The percentage allocations are: 1997 1998 City Manager 20% 20% Ass't City Manager 50% 50% Office Manager 20% 20% Planning Director 15% 15% Planning Secretary 20% 20% City Engineer 10% 10% Senior Planner 25% 25% Accountant 1\ 25% 25% MIS Coordinator 50% 0% (Transferred!O Capt Project Admin in 1998) Clerk Typist 20% 20% Intern 100% 100% 0Note reductions in Personal Services due to reduction of work load associated with the EDA. 4300 Legallappraisal fees for Paisley Park tax court petition. legallprofessional costs associated with the redevelopment of the PaulylPony/pryzmus site. Note: Staff stili anticipates approximately $20,000 for the Paisley Park tax petition for 1998. 158 " ~ '" - IÎ I I I I I I I I I I I I I I , I TAX APPEAL DEFENSE AGREEMENT , i i ~ THIS AGREEMENT, made as of the _ day of , 1996, by and between the County of Carver, a body politic (the "County") and the Chanhassen Housing & Redevelopment Authority in and for the City of Chanhassen, a public body corporate and politic (the "HRA"). WITNESSETH: WHEREAS, PRN Music Corporation ("PRN") is the owner of certain real property located in the City of Chanhassen, County of Carver, State of Minnesota, which property is known as PID #25-1900110 (hereinafter called the "PRN Property"); and WHEREAS, PRN has filed real property tax appeals ("Tax Appeals") with the Minnesota Tax Court for ad valorem taxes assessed on January 2, 1994 and January 2, 1995 against the PRN Property payable in the years 1995 and 1996; and WHEREAS, it is the statutory obligation of the County of Carver to defend the Tax Appeals; and WHEREAS, the County has asked the HRA to cooperate and provide certain assistance in defending the Tax Appeals and the HRA is willing to provide such assistance under the terms and conditions hereinafter set forth. NOW, THEREFORE, it is hereby stipulated and agreed by and between the parties hereto as follows: l. Defense of Appeals. The HRA will provide the following assistance to the County in defense of the Tax Appeals: a. Legal Support. The HRA authorizes and will pay the cost of its regular HRA Attorneys, Kennedy & Graven and John M. LeFevre and James J. Thomson to assist the County in the defense of the Tax Appeals. Such assistance shall be provided to the County Attorney's Office who shall remain primarily responsible for defending the Tax Appeals. b. Appraisals. The HRA agrees to pay the cost of commissioning an appraisal to be used to support the position of the HRA and the County in the Tax Appeals. in an amount not to exceed $25,000.00. Any appraisal costs above and beyond $25,000.00 shall be paid by the County, c. Expert Preparation and Testimonv. The HRA shall pay up to the sum of $5,000,00, for expert witnesses preparation and testimony for experts used in the defense of the Tax Appeals (including, but not limited to the appraiser). Any costs in excess of $5,000,00 for expert witness preparation and testimony shall be paid by the County. r;r:t~:~1'}~I" -·;__4.·.........' J,lTI01463 CH130-51 1 " 'y ^ 1996 ;'" ". ,""',1 ,..,........ ,_ _,"" 2. Role of Countv. In the defense of the Tax Appeals, the role of the County shall be as follows: a. County Attorney's Office. The County Attorney's office shall act as lead attorneys in the defense of the Tax Appeals but shall reasonably cooperate with and accept the assistance of the HRA's attorneys. b. County Assessor. The County shall make available the full resources of its Assessor and the Assessor's subordinates to defend the Tax Appeals. c. Soecial Assistant County Attorneys. The County shall, pursuant to the authority of M.S. § 388.10 appoint John M. LeFevre and James J. Thomson special Assistant County Attorneys in relation to assist the County in the Tax Appeals. 3. Selection of Aooraiser. The HRA and the County shall jointly consider the selection of an appraiser to be used to defend their joint position in the Tax Appeals. However, in the event of a disagreement as to the selection of such appraiser, the HRA has the ultimate authority to select the appraiser to be retained in the defense of the Tax Appeals. 4. Consent to Settle. For and in consideration of the HRA' s participation in the defense of the Tax Appeals, the County agrees that it will not compromise and settle the Tax Appeals without the specific consent of the HRA. The HRA agrees to not unreasonably withhold such consent. 5. A ward of Costs and Disbursements, If the Tax Court awards any costs and disbursements to the County at the conclusion of any trial, all such costs and disbursements shall be given to the HRA. If the Tax Court awards PRN any costs and disbursements, the HRA and the County shall each pay 50% of the amount awarded. 6, Aooeal. If PRN appeals any decision of the Tax Court, this Agreement and the obligations conferred herein shall remain in full force and effect until such appeal is exhausted, If the HRA and the County jointly elect to initiate any appeal of the decision of the Tax Court, in relation to the Tax Appeals, this Agreement shall remain in full force and effect until such appeal is exhausted. If the County elects to appeal, the HRA may, in its discretion, elect to terminate this Agreement and the HRA shall have no further obligations to provide support or assistance to the County. If the HRA elects to appeal and the County declines to participate, the HRA may pursue such appeal, in the name of the County, but the HRA shall be responsible for all costs incurred in such appeal. 7. Financial Audit Pursuant to M.S. § 16B.06, subd. 4, both the HRA and the County, or any of their duly authorized representatives, at any reasonable time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records etc., which are pertinent to the accounting practices and procedures of either the HRA or the County and involve transactions relating to this Agreement. JJTI01463 CH130-S1 2 , , ,¡ /. 8. Eaual Opportunity and Discrimination. During the performance of the Agreement, both the HRA and the County agree that no person shall, on the grounds of race, color, religion, age, sex, disability, marital status, public assistance status, criminal record, creed or natural origin be excluded from full employment in, participation in, be denied the benefits of or be otherwise subject to discrimination under any and all applicable federal and state laws against discrimination. 9. Default. Should either party default regarding their duties and obligations under this Agreement, and such default continues for more than thirty (30) days after receiving written notice from the other party, the non-defaulting party has the following rights: a. Suspend its performance under this Agreement until it receives assurances from the defaulting party, reasonably deemed to be adequate by the non-defaulting party, that the defaulting party will cure its default and continue its performance under this Agreement. b. Cancel and rescind the Agreement. c. Take any action including legal or administrative action, which may appear necessary or desirable to enforce performance and observance of any obligation, agreement, or covenant of the defaulting party under this Agreement. 10, Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by any party to any other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally and: a) In the case of the HRA, addressed to or delivered personally to: Mr, Don Ashworth Executive Director Chanhassen City Hall' PO Box 147 Chanhassen MN 55317-0147 b) In the case of the County, addressed to or delivered personally to: Mr. Richard Stolz County Administrator Carver County Courthouse 600 4th Street East Chaska MN 55318 Or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other party. JJTI01463 CH130-51 3 II. Applicable Law. This Agreement will be governed and construed in accordance with the laws of the State of Minnesota. 12. Amendment or Modification. This Agreement may be amended or modified only in writing, signed by both parties. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on or as of the date first above written. COUNTY OF CARVER By: .- I ,./' / ;: />! f.J.tt /æ 'ursula Dimler Its: Chairman Co ( J tI(.rlf.... {¡J/L-.. of the Board of By: Richard Stolz,. Its: Administrator CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY By: //1- ()~V Don Ashworth Its: Executive Director .JJTI01463 CHlJO-51 4 Housing and Redevelopment Authority - May 16, 1996 Gerhardt: No, that's fine. Anybody have anybody in particular that I'd like to send this out to? Do you know anybody in the field that might be interested that you want to make sure gets it. Bohn: I had somebody approach me on it when they heard that we were selling the property and that was Ursula Dimler. She was still under the impression that we still might be putting a library in there. Gerhardt: Okay. I can contact Ursula and tell her what our future plans for the library are. Boyle: I think it was pretty universally agreed that we were looking at a revenue producing property on that. Gerhardt: I'll call here. We're following the guidelines of the Vision 2002. It was stated in the newsletter that this property would be redeveloped to private users but to keep it's historical perspective and try to open up the presence of St. Hubert's. But I will call Ursula and update her on what the future library plans are. Bohn: She's on the Library Board I believe. Gerhardt: Right. CONSIDER APPROVAL OF mE TAX APPEAL DEFENSE AGREEMENT WITH CARVER COUNTY. Todd Gelbanlt pn~sented the staff I'epolt on this item. Boyle: Todd, on the previous appeal, who paid for the defense on that? Gerhardt: Carver County. Boyle: County paid for all of that? Gerhardt: Yes. This is an unusual. The City of Chaska picked up the entire cost, or did a joint agreement with Carver County in defending the Oak Ridge Conference Center. Oak Ridge contested their minimum market value and the city came in and defended that also in a similar manner that we're working on this. Boyle: In '92, '93 and '94 it was appealed and they won, is this correct? 8 Housing and Redevelopment Authority - May 16, 1996 Gerhardt: Yes. Boyle: Reducing the value of the property from $5 million to $4 million. Gerhardt: Correct. Boyle: But we feel today fairly secure that this property is now worth $5 million? Gerhardt: Well. Boyle: We're willing to gamble $40,000.00, I'd say so. Gerhardt: Correct. Boyle: Okay. How much tax increment financing did the company initially receive? Do you recall? Gerhardt: Approximately $175,000.00. Boyle: And that was what? About 1980 or so? Gerhardt: It was in 19&9. Boyle: Okay. We're currently assessing private property, or trying to at about a 93% of market value. Gerhardt: Correct. Boyle: Yeah market value. Is this $5 million, would that lie within that same, in your opinion or would it have to, in your opinion or staffs opinion at this time? Gerhardt: Yes. Boyle: So in other words, if they sold the property today they could possibly get 7% more than that? Gerhardt: Correct. It's a specialty use. I mean you know, Steve is never going to be interested in, Mr. Berquist is never going to be interested in buying that building to put his business in there because it just doesn't fit the use. And Roman would never come in and 9 Housing and Redevelopment Authority - May 16, 1996 buy it because he could never lease it out you know to manufacturing people. I mean you're going to have to find somebody that's in the music business. Boyle: And that might be their case. Gerhardt: Correct. But that's why you need to get a qualified appraiser that can out and do searches in the area, and outside of Minnesota to find out how these things are selling. And then also take a look at the facility itself. So that's why you've got to get a qualified appraiser to do this. The last appraisal just didn't do the income approach and I'm convinced that the Judge just sided with PRN because we didn't do the full appraisal. You know you have to show both sides of the picture. You can't just do one on value. Boyle: What information have you received to date that makes you think this might be worth $5 million? Todd, I'm sorry to put you on the spot but we're trying to, $40,000.00 doesn't sound like much but just to gamble on 40 grand, I don't know. It's quite a bit of money. Gerhardt: Well, the building. Boyle: I want to feel fairly secure that that's where it's going to come out. Gerhardt: Well the building itself is, was constructed for somewhere between $9 and $10 million. I just have a hard time believing that he would sell the building for 50 cents on the dollar. And you know, if he does sell it for 50 cents on the dollar, then you know he'd better have made a lot of money between the time he built the thing and today. But then we take the income approach and show you know what the value of the building was based on those revenues for the recording side so, that's the only thing I can base my recommendation on. Why I think it's worth at least $5 million. Boyle: I've got one other question and then I'll turn it over. Is this a financially secure company? I mean are we assisting, if the property is re-evaluated at $5 million and his taxes were such, are we in a position where, would we possibly be in a position that this company would eliminate being on the tax rolls in the near future as a result of higher taxes? Gerhardt: They're current on their taxes and every business is under scrutiny you know. That's the risk of running a business any day and he has never indicated to us that this would be, that this is greatly impacting his business. I can't tell him how to run his business or you know, all I know is that we have to go in and evaluate properties as to what we think the values are and we don't worry about the businesses. Well we do worry about them but we have to look out for our own good too. 10 Housing and Redevelopment Authority - May 16, 1996 Boyle: Thank you Todd. Questions? Robbins: I've got two. Going back to the valuation of it. The $5 million. Whether it's 5.5 or whatever. For saying that land in town here is $4.50 a foot, now do you know the original purchase price of that land exclusive of the building? Not right now but just that question. In terms of what's the ratio of the land value to the overaIl purchase price. And then secondly, it may be more than just the 40 Gary because what it might have, and this is a hypothetical question but if one company sees that it worked for them to do a devaluation downward, might that incur other companies to do a similar situation which then, if we're picking up 40, as an example, picking up 40 of legal for this venture, would we not then do a quasi-precedence on picking up other legal fees as weIl for others? Gerhardt: Maybe I didn't stress it enough. This is such a special, specialty use. It's outside the realms of really the county's expertise to really litigate this one. Same thing with Chaska and the Oak Ridge Conference Center. Right now Carver County is litigating Empak has filed for tax appeal. And we are not assisting them, though I wiIl be testifying next week on that one. But we are not contributing to that one. The reason we are contributing to this one is that it is such a special use. It's outside the expertise of the county and so we're using Kennedy & Graven and trying to find an appraising firm that has that broad background to do that kind of an appraisal. So will it happen on the other buildings? I don't know. As both the county and the city and HRA budgets get tighter, you know we may be working closer together on these things and combining our resources. But right now the counties have been fighting these and they have requested our assistance in this one. Just because of it's special use. Boyle: Jim? Bohn: I don't have any comment. Boyle: Don? Chmiel: No. I don't on this. Boyle: Mike. Mason: No, nothing. Boyle: You answered I think most the questions and I thank you. 11 Housing and Redevelopment Authority _ May 16, 1996 Gerhardt: As to the purchase price, lands right now in industrial areas are selling for about $1.90 to up to about $2.25 a square foot and I think back when they bought, I look to Roman on this one, dollar and a quarter? Roman Roos: $1.30 to... Boyle: But that was then. Not now. Gerhardt: That was in '89-'88, yeah. That's how much industrial, so the land price has even gone up since then so, but their building has depreciated too so they kind of balance each other out. Boyle: I'd ask for a motion then that we approve the tax appeal defense agreement with Carver County. Robbins: So moved. Steve Berquist: Excuse me, may I ask a question? Boyle: Yes you may. Steve Berquist: Steve Berquist. I live at 7207 Frontier Trail. I was just making some notes here as I was looking through this thing. It seems to me that when we see HRA agreements, there's minimum market values that are assigned to properties. Was there one assigned to this? Gerhardt: There was one assigned to this. Steve Berquist: What was it? Gerhardt: $5,021,000.00. Steve Berquist: So it's currently at the agreed upon market value that was? Gerhardt: No. The minimum market value agreement during the court appeal for '91-'92 tax appeal was thrown out. Steve Berquist: ...the HRA had signed back in 1989, this deal was done was indicated by the courts? 12 j J Housing and Redevelopment Authority - May 16, 1996 Gerhardt: Correct. It was negated on a technicality based on State Statute in '89 says you could not enter into private redevelopment agreements after the building was up. PRN came in after their building was up requesting assistance and the HRA at that time said yes and we were not aware of that part of the law. And it only lasted, the Statute was only for 1989. In 1990 they changed it, but the Judge ruled on what the law was in 1989 so they threw out the minimum market value. That's why you need special litigators to go in and persuade the Judge. Tell him how the law should be read. So the minimum market value agreement was thrown out. Steve Berquist: What was the minimum market value arrived at? Gerhardt: $5,021,000.00. Steve Berquist: So in 1989, when PRN came to the city and the HRA and said we want some debt assistance, and we will agree to a minimum market value of this $5,02I,OOO.00? Gerhardt: Correct. Steve Berquist: Okay. Somehow it seems more than coincidental. Gerhardt: The $5,021,000.00? I'm sure they used. Steve Berquist: That the correct value is exactly what they appraised the taxation was. Unless I'm missing something. Part of the difficulty in the appraisal process is reflected in the $25,000.00 that's...for the appraisal. An appraisal on commercial property is nowhere near 25 grand. So I would suspect Andy Gravens said, we don't know. We're going to have to look at the rest of the country in terms oLmarket value based upon what we find there, and therefore the appraisal price is going to be $25,000.00. There's another $5,000.00 in there for. Gerhardt: Testimony. Steve Berquist: Testimony so in essence Kennedy and Gravens are saying to defend the city's position it will start at 10 grand. Gerhardt: They left anywhere between 8 to 10, correct. Steve Berquist: Okay. And the $25,000.00 is a guesstimate. Gerhardt: Not to exceed. \3 Housing and Redevelopment Authority - May 16, 1996 Steve Berquist: You make mention of the defense...back last year, two years from now was lower than $5,021,000.00. Gerhardt: It was lower before. Steve Berquist: And you speak, you mention that Carver County did the defense and the attorney that provided the defense did not use an income approach. Gerhardt: An appraiser did not do an income approach. Steve Berquist: An appraiser did not do an income approach. Was Oak Ridge, you mentioned that also. Was that appeal won or lost? Gerhardt: The last I heard it was settled out at the eleventh hour. Steve Berquist: Did the appraiser use an income approach at that point? Gerhardt: Yes. They hired an appraiser from New York that put a document appraisal together that was that thick. Steve Berquist: Again specialty use. Gerhardt: Specialty use. There's only so many conference centers throughout the United States like that one. Steve Berquist: And recording studios. Do you have any idea what that appraisal cost? Gerhardt: Much more than the $25,000.00. Steve Berquist: Okay. And the other question I had was regarding fixtures. And I suspect this was an integral part of the conversation that took place prior to lowering the value. The argument as I recall was one of fixtures that were an integral part of the building and the argument was, they are personal property versus Corporate property. The $9 or $10 million that was used as construction cost figures, is that included? I mean where did that number come from? That $9 or $10 million. Gerhardt: I think a building permit. They also gave us a plaque thanking us for everything and said come see our $9 million to $10 million facilities. I think it's about II but I'm not sure. 14 j Housing and Redevelopment Authority - May 16, 1996 Steve Berquist: So the question then becomes one of, if the fixtures were in fact attached to the building and amortized as part of the mortgage, and I'm just trying to...this has any bearing on this, on this effect. The fixtures were part of the mortgage and part of the $9 to $11 million value. Now all of a sudden the $5 million is shown. Gerhardt: You have to, I don't know. I'm not an appraiser but you have to, you can't just call them personal property. I mean if you don't have that recording equipment in there, that building can't produce revenue. It's, I don't know if they've really looked at it as personal. They did look at the specialty of the flooring and walls and things that were in there and I don't remember how they really looked at the equipment portion of it. Steve Berquist: Argumentatively, the income approach would take that into account. Gerhardt: Correct. How can you really review that if you don't do an income approach. So the Judge. Steve Berquist: Who's the appraiser for the County? Gerhardt: I forget who they used. They did use, it was a private firm from outside the County. Steve Berquist: Did the attorney for the City or the County ever request an income approach appraisal? I mean we're talking about a lowering of valuation of about 15%. Gerhardt: I don't know why they didn't ask for the income approach. They felt that the value of the building was there. That they also discounted the revenue approach because they felt that he wasn't maximizing the revenue that was coming out of the building so they thought that might hurt him. I don't know. They wanted to solely look at the building construction portion of it. And it backfired on them. Steve Berquist: So how's that going to change then if we use an income approach this time? I mean if in fact I go in and I want to do a recording in my own studio and I don't charge myself, and I do the same thing two years from now as I did two years ago, how's it going to change? Gerhardt: You can show what the revenues were generated. Steve Berquist: What revenues should have been, had I had somebody paying in there. 15 Housing and Redevelopment Authority - May 16, 1996 Gerhardt: Well that would be part of the defense is that on the income approach, if his numbers are low, they will make the point and you can pull, I mean he's been in the newspaper as regarding articles that he's turning in where he should be doing recording business, you know he kicks everybody out and has concerts in there. Steve Berquist: Last question, did we...spending or investing dollars at the time that the initial tax appeal was requested, or did you simply trust that the County was going to work on the HRA's we have when the County in fact had nothing to stand, nothing to gain or lose. In other words, did the same question come before the Board? Gerhardt: No, it did not. Steve Berquist: Okay, thanks. Bohn: I have a question. Isn't Paisley Park going under remodeling right now? Gerhardt: They've done several remodelings over the years. Bohn: The paper said it was closed for remodeling. Chmiel: There are no permits taken out on the facility at this time. Boyle: I think bringing us back to the issue at hand. The issue at hand is, do we vote or agree to fund up to $40,000.00 to appeal the defense agreement with Carver County. That is the issue as I see it. If we would direct our questions in that direction, I would appreciate it. Mason: I would move that we approve the. Tax Appeal Defense Agreement with Carver County. Boyle: May I have a second? Mason: Has there been a second already? Oh, I'm sorry. I apologize. Boyle: Yeah we did. I went by that too. So would you like to second it? Mason: If it hasn't been, I certainly. Boyle: Are there any other questions or comments? 16 Housing and Redevelopment Authority - May 16, 1996 Robbins moved, Mason seconded to appl'Ove the Tax Appeal Defense Agl'eement with Cmvel' County. All voted in favol' and the motion cm,ied. CHASKA/CHANHASSEN HOCKEY ASSOCIATION. ICE ARENA PROPOSAL. Todd Gerhardt and Todd Hoffman presented the staff report on this item. Steve Olinger: Good evening Mr. Chairman and members of the HRA. First I'd just like to thank you for giving us this opportunity. I'll make it very, very brief. We're, our hockey association is growing by leaps and bounds, as is in Minnetonka. We're in dire need of ice. Currently we purchase all 30% of our rinks outside of the Chaska Community Center and that problem is going to get continually worse. We noticed, I began President a year ago and started at that time trying to find solutions for the problem that was facing us. I've approached the three major communities that support our hockey association and that's Chaska, Chanhassen and Victoria. To see if any of those cities would be willing to build an arena. It's difficult for a privately funded arena...to do ice management and building costs are such that it's very difficult for a private organization or individual to own an arena. We have cut and scrimped and scrapped and found a way that we can do it but the only way that we can do it is if we are given land by one of those cities and that's what we're asking at this time. I think that it could be a great advantage to Chanhassen, who would like to have an arena. I know most of the surrounding communities, Chaska, Shakopee, Eden Prairie, Bloomington, Hopkins, Edina, Minnetonka, Wayzata, Mound, all have their own arenas. I think Chanhassen has that opportunity to have an arena now that they need only to donate the land and we would ask perhaps with some help in the soil... I think it would work well with Chanhassen...for our association to have an arena in Chanhassen also. Approximately half of our members of our hockey association are from Chanhassen and they would like to have an arena that's their home. We are willing to put in a lot of work to make this arena work but it can't work financially unless we have land that's donated by one of those cities. We would like to start the project this summer. The main reason for that is access to money, funding that is still there and we have, we sit nicely for that money that's...multiple cities and organizations...in addition to the areas that are build on in girls hockey and Chaska certainly is already on that as is our hockey association. The city of Waconia as well is starting, Waconia is starting a hockey association there and so we're bringing a lot of communities here in addition to Minnetonka, and while they're need for ice also. And so we've got a lot of parties involved here that are in desperate straits at this point. I mean it would serve us as well as other surrounding communities quite well. I don't like to hassle things. We're not going to, we try to be a good, responsible group of citizens who will work hard to make an arena that the City of Chanhassen can be proud of and that their citizens can be proud of. So I ask that you consider this proposal. If you have any questions at all, I'm always free to 17 1998 City Council Work Sessions January 5,1998 · No work session held 5:30 p.m. Courtyard Conference Room February 2,1998 · Continuation of Regular Meeting of January 26, 5:30 p.m. 1998 Courtyard Conference Room Tuesday, February 17,1998 · Lakeview HiIls Options 5:30 p.m. · Council Goals/Objectives Courtyard Conference Room · Prioritize Work Sessions · Review Strategic Planning Setup · Contract Amendment, Howard R. Green · Park & Recreation Related Items March 2, 1998 · Public Safety Commission Interviews (4 out of 5 5:30 p.m. applicants) Courtyard Conference Room · Review City Vehicles · Bluff Creek Open Space Acquisition, Mark Koegler · City Goals and Objectives March 16, 1998 · Interview Public Safety Commission Applicant: 5:30 p.m. 5:30 p.m. Dean Gregory Courtyard Conference Room · Comprehensive Plan: CIP and Transportation · Strategic Planning, Jim Brimeyer March 30, 1998 · No meeting 5:30 p.m. Courtyard Conference Room April 6, 1998 · Board of Review Discussion 5:00 p.m. 5:00 p.m. · Bluff Creek Overlay 5:30 p.m. · Entertainment Complex 6:00 p.m. Courtyard Conference Room · 2.2 Acres, Villages on the Pond 6:45 p.m. · Board of Review 7:00 p.m, · Highway 7 & Review of Coulter Blvd. 7:15p.m. Preliminary Plan Set 8:00 p.m. · Environmental Commission Interviews (3) · Liquor Ordinance 8:45 p.m. April 20, 1998 · Review TH 5 60% Plan Set 5:30 p.m. · Noise Ordinance Courtyard Conference Room · Vehicles · Position Classification & Pay Compo Plan · Planning Items: - Bluff Creek Overlay District - Old Town District - Congregate Dining · Review Work Session Schedule May 4, 1998 · No meeting 5:30 p.m. Courtvard Conference Room May 5,1998 · Strategic Planning Process, Jim Brimeyer 5:00 p.m. Fire Station, 7610 Laredo Dr. May 18,1998 · No meeting 5:30 p.m. May 21,1998 · Bond Sale 5-6 p.m. 5:00 p.m. · Strategic Planning Process, Jim Brimeyer 6-9 p.m. Fire Station, 7610 Laredo Dr. (City Council and Don only) June 1, 1998 · Bluff Creek Overlay 5:30-6:00 pm 5:30 p.m. · Moon Valley, Tom Zwiers 6:00-6:30 pm Courtyard Conference Room · Park & Recreation Commission Interviews: 6:30-7:45 pm _ 6:30 p.m. Fred Berg _ 6:45 p.m. Frank Mendez _ 7:00 p.m. Kurt Papke -7:15p.m. Jim Manders _ 7:30 p.m. Joe Maloney June 15,1998 · 1998 Bonds 5:30 p.m. Courtvard Conference Room June 25 or 26,1998 · Strategic Planning Process, Jim Brimeyer 8 a.m. -12 noon (City Council and Don/Todd only) Fire Station, 7610 Laredo Dr. June 29,1998 · Lake Issues (Mil foil) 5:30 p.m. · Doug Hansen Property Courtyard Conference Room · Joint Planning Commission/City Council Meeting regarding the Comorehensive Plan July 6, 1998 · 1998 Bonds, Award of Bids 4:30 p,m. · Strategic Plan CourtYard Conference Room · Cinema Sign July 20,1998 · Strategic Planning, Jim Brimeyer 5:30 p.m. _ Review Budget Planning Process as it relates to Courtyard Conference Room Strategic Plan · Financial Model for Land Use Tax Base August 3,1998 · Memo of Understanding, TH 212 4:00 p.m. 5:30 p.m. · Strategic Planning: 1999 Budget 5:00 p.m. Courtyard Conference Room · Financial Model for Land Use Tax Base 6:30 p,m, · Comprehensive plan-Planning Commission 7:00 p,m. August 17,1998 · Ursula Dimler, County/City Relationships 4:30 p.m. 5:30 p.m. · 1997 Audit; Tautges Redpath 5:30 p.m. Courtyard Conference Room · Joint Park & Recreation Commission/City 6:30 p.m. Council meeting · Joint Public Safety Commission/City Council 7:30 p.m. meeting August 31,1998 · 1999 Budget: Presentations from all depts. 5:30 p.m. Courtyard Conference Room September 21,1998 · Joint Meeting with the Environmental 5:30 p.m. Commission/City Council Courtyard Conference Room October 5,1998 5:30 p.m. Courtyard Conference Room October 19,1998 5:30 p.m. Courtyard Conference Room November 2, 1998 5:30 p.m. Courtyard Conference Room November 16,1998 5:30 p.m. Courtyard Conference Room November 30,1998 5:30 p.m. Courtyard Conference Room November 30,1998 5:30 p.m. Courtyard Conference Room December 7, 1998 5:30 p.m. Courtyard Conference Room December 21,1998 5:30 p.m. Courtyard Conference Room December 28,1998\ 5:30 p.m. Courtyard Conference Room g: \user\karen \98worksessions.doc 1 ¡ Items to schedule: · Liquor Ordinance · Public Works Expansion · Wrase Buildings · Park & Recreation Programs--Are we fulfilling residents needs? · Entry Monuments · Fee Schedules · Lifetime · Environmental Commission Interviews · 2.2 Acres in the Villages on the Ponds, Reconsider Designation as a Conservation Easement. · Wrase Property (Historical House) · RFP for Financial Advisors · Code of Ethics. · Park & Recreation Items to be scheduled after the referendum vote: · Park & Recreation Commission Long and Short Range Goals · Park Acquisition and Development Five Year Capital Improvement Program · Funding Sources for Park, Open Space, and Trail Initiatives · The Chanhassen Senior Center-The Challenges Presented by Congregate Dining · Replacement of Lake Ann Park Entrance Road and Parking Lot Infrastructure · Update on Water Resources Projects, Phillip Elkin · Local Sales Tax/Franchise Fees - Position papers by Mark Senn and Don Ashworth · Strategic Planning · Southwest Metro Transit-Joint Meeting · Library SOUlHWEST CORRIDOR TRANSPORTATION COALmON 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 (612) 337-9310 (Facsimile) .( June 30,1998 / pk' I}>,r e e' ')h RlCEIVE;~ ¡J-vJ' JUL 0'11998 C/TY OF CH~NH~SSEN TO: CITY MANAGERS AND COUNlY ADMINISTRATORS (See Attached List) RE: Request to Metropolitan Council for Maximum Levy for Right of Way Acquisition Loan Fund (''RALF') Ladies and Gentlemen: Attached is a copy of a letter to me dated June 24, 1998, from Curtis W. Iohnson, Chair, Metropolitan Council, which I received in response to my request that the Metropolitan Council levy the maximum for the Right of Way Acquisition Loan Fund ("RAlF') in 1998 (for taxes payable in 1999) and thereafter until all right of way has been purchased for New Highway 212. ¡ ;1 If you have any questions, please call me. Thank you for your assistance by adoption of resolutions in support of this request RJL:jms Enclosure cc: Board of Directors FredComgan Todd Vlatkovich 1(;' yo"" RobertI. L' RJL-145981 LN4OQ-51 INTERESTED PARTIES ,. 4 Julius C. Smith, Member, Metro Council City Manager, City of of Granite Falls City Clerk, City of Bird Island City Clerk-Treasurer, City of Brownton Chair, Hennepin County Board of Commissioners City Administrator, City of Norwood Young America Chair, Carver County Board of Commissioners City Administrator, City of Danube City Administrator, City of Victoria City Administrator, City of Chaska City Administrator, City ofWaconia City Administrator, City of Cologne City Administrator, City of Fairfax City Administrator, City of Franklin City Administrator, City of Hector City Administrator, City of Sacred Heart City Administrator, City of Arlington City Administrator, City of Olivia City Manager, City of Eden Prairie City Administrator, City of Redwood Falls Chair, McLeod County Board of Commissioners City Clerk, City of Plato City Administrator, City of Gaylord City Administrator, City of Dawson City Clerkffreasurer, City of Montevideo City Administrator, City of Gibbon City Administrator, City of Glencoe City Administrator, City of Chanhassen > RJL-145981 LN400-51 , . ~ Metropolitan Council ~ Working for the Region, Planning for the Future June 24,1998 1!';::\...~©30\,§ § ~~ !I \ '¡1r ... - u._' I !. II ~~ JUN 2 9 ;,,?8 :;/ Mr, Robert J, Lmdall President Southwest Corridor Transportation Coalition 470 Pillsbury Center Minneapolis, Minnesota 55402 Re: Construction of New U.S. Highway 212 Dear Mr. Lindall: I appreciated receiving your recent letter regarding your support for the construction of new U.S. Highway 212 as well as the emphasis on the Metropolitan Council levying to the maximum to finance Right of Way Acquisition Loan Funds (RALF), The Metropolitan Council levied to the maximum for RALF in 1998 and plans to do so again for taxes payable 1999, We will continue to monitor the fund annually to determine the demand and the amount of funds on hand which ultimately determines the levy which the Council will consider. If other issues arise regarding this levy or there are other questions, I will be sure to contact you. Thank you for your continuing interest and if you have any additional questions, please do not hesitate to contact me. Sincerely, @"" Curtis W. Johnson Chair .., cc: Julius C. Smith, Member Metropolitan Council James J. Solem, Regional Administrator Richard P. Johnson, Associate Regional Administrator Nacho Diaz, Director of Transportation and Transit Development "'....".....--. .....,1"'... <"'.----. .......... '''-- . ~-.". ."". ,,,............... ........,..n ..._ ....... ......_" ...............~'...n. ru'V'. '.-'-- '_1"'_ "__ ......n '>"70"