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7. Request toAmend Building Permit Fees, Heritage Park Apartments • CITYOF -= I, CHANHASSEN Aiow 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 MEMORANDUM TO: Don Ashworth, City Manager FROM: Todd Gerhardt, Assistant City Manager DATE: October 19 , 1989 SUBJ: Request for Reimbursement of a Portion of the Building Permit Fee for Heritage Park Apartments Attached for the City Council ' s consideration is a request from Brad Johnson for reimbursement of a portion of the building per- mit fee for Heritage Park Apartments . Mr . Johnson is requesting that the building permit fee be reduced from $15 , 726 to $11 , 199 , ' a reduction of $4 , 527 . Also attached is an opinion from Roger Knutson regarding the methods that the City of Chanhassen uses in calculating permit fees . Mr. Knutson also mentions in his letter that if the Council is considering lowering the permit fee for one individual , the Council must make the same consideration for everyone else in the future. Recommendation Staff is recommending that the City Council deny the request for reimbursement of $4, 527 to Heritage Park Apartments on the basis that it would violate the intent of the State Uniform Building Code valuation tables used by the City of Chanhassen in deter- mining building valuation. I Attachments 1 . Letter from Brad Johnson dated September 27 , 1989 . 2 . Letter from Roger Knutson dated October 19 , 1989 . 1 c: Brad Johnson pl)°.►`1� Scct 1—ttir r cia4-e4 July 16(1 m.I r LOTUS REALTY SERVICES 545 WEST 78th STREET, P.O. BOX 100 CHANHASSEN, MINNESOTA 55317 (612) 934-4538 1 September 27, 1989 Chanhassen City Council ' 690 Coulter Drive Chanhassen, MN 55317 RE: Heritage Park Apartments Building Permit Fee As a participant in the development of Heritage Park Apartments located at Chan View and Great Plains Blvd. , we are requesting that the City reconsider ' the building permit fees payable by this project, and calculate them on a basis that more realistically approximates the value of the building. Specifically, we request that the fees be reduced from $15,726 to $11,199, a reduction of $4,527. The contractor for the project has paid building permit, plan check and state surcharge fees totalling $15,726. These fees were calculated by the City on the basis of a building value of $3,595,302.00, which was arrived at by using state guidelines (1985 Uniform Building Code). The state guidelines basically designate different building uses and construction types and costs per square foot for each. Attached you will find our Contractor's $2,322,068 cost for the project, submitted to HUD-FHA which is insuring the project. Attached you will also find the Assessor's certification of a minimum market value for the project of $2,053,000. The Assessor calculates market values on apartment buildings on the basis of rents charged in those buildings. In that regard, it should be noted that the rents in 24 of the 60 units are set below market to rent to low and moderate income persons. ' If the building permit, plan check and state surcharge fees are calculated on the basis of a building value of $2,322,000 (Contractor's costs provided to HUD-FHA) , the total fees would be $11,199. We request that you calculate the building permit fees on this basis, rather than on the basis of a building value of $3,595,302. Thanks for considering this request. Sincerely, 1 Brad hnson 1 / - / / ♦J.'• ew U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Fero Approved I - FEDERAL HOUSING ADMIMISTRATIDrt Bvlpt Simms No.{3 5/11/89 Mq..r sift. CONTRACTOR'S and/se MORTGAGOR'S 092-35480 y«... COST BREAKDOWN Bvrid.es Id.ngmi..tI.• (SCHEDULES OF VALUES( • I 14.0.N} ti ree. Lee•tiee Heritage Park Apartments Zhanhassen, Mff. This Ism represents,M Contractors end/er Mortge1er•first tests eed.oreiess as a INSis Iw disbursing defter Leemats elan insured ed.. era rogoostd. Deloiled instructions for completing this term era Inctud.4.. rho revers•olds. L O t I TRADE ITEM COST • I M v TRADE DESCRIPTION , 3 Conceal. 324,600 Concrete, Block, Gyperete, Precast B Brick M In Above - 3 S u.,•I. 10,400 I 4 aRest ghC.,pent.r 409,545 S ['Finish Cerp,nut 371700 O 7 w•terereehng 4,000 Inivletlon 30,000 • I 7 Reeling 17,500 Shingles Material a Labor I 9 She•,Mates 0 10 . Deers 61,500 11 Winder.' 32.300 Windows/Patio Doors 12 II Gloss 13 9 loth B Plaster 0 - 14 9 Drywall 145.000 IS Tile work 3 000 16 • A cot 0 11 9 weed Flooring 0 II 9 Resilient Fleeting 20.761 19 9 Pointing&Decorating 24 000 20 10 10 000 21 II 35,500 22 11 Cshm.m 45,760 1 23.11 60,107 24 12 Blinds 1 Shades.Aftwork 6 000 1$ 12.Corsets 45,692 26 0 27 II 30,000 174 300 29 ®Hetet 4 Ventelvien Above, 30 31 116,000 32 susToiaLtswumeNA) 1,813,265 33 34 ' 33 © 01 Includes Soil Testing, Drain Tile 36 . tit 37 2 Reeds it Welk.31 000 —..__ _—___.—�.. _—_ -- 39 2 Lewes IL Plentie CI ... 10 2 Unuswl Sit.Condition 0 *0siR IA1114T1AL AND SP-E CIA L II TOTAL I,ANt IM►RUTS. EXTERIO/. LAND IMPROVEMENT n►FELT! COSTS I - 114.600 (emus rn.I.ded on grade mew{y....,,, ;emits Net whetted a reeds mete',NW, 42 TOT.STRUCT.a LANG IMPR VTS. 1,927,865 DESCRIPTION 43 1 GENERAL REQUIREMENTS- 10_1,30_0 M. COST DESCRIPTION EST. Ct 41 SUBTOTAL Minos 41 end 421 2,029, .65 --"'^- •BUIIOER'S OVERHEAD 40,583 -" — I •BUILDER'S PROFIT 0 TOTAL* •-� - -- •.-- 42 ,SUBTOTAL (Lime 44 taw 44S 2,069,748~ OTNta rites 4 24Y 247 Arch.Fe� Desi n 's------- --9 —__.74,250 49 �OTHER FlEf ^_ � -jQ{►g.;.p} - � DEMOLITION 49 80N0 PREMIUM Arch,Fea Szupervisi00 24,71p- (.mole set oaths/oil is grade item Joggled. 7,500_City, SAC/VAC Ofain•TION I SI ■TOTAL FOR ALL IMPROVIMiiT -. -.— ._- IfT. C 12 ' ��. '... d by.ro.a 14S Y 10 • Jotter i n ear '2, 3 O.a TOTAL FOR ALL IMPROVEMENT $2 LESS LINE s2 z3( %Gf. TOTAL f '449:,2r 2if1�g•44) TOTAL f iDW I Mortege, Heritage Park By Ore 5/11/89 c,„„„,„ Lumber One, Avon Inc. b Dgq 5/11/89 PNA RNA tpoemr,.,Maitre/ (CIAO t U.d..wsaq (DM ICBW,Gw MeW of Col Ags/tw1 Ogg toms) 111 11111111.1111PID IE X H I B I T " C " ICERTIFICATION BY ASSESSOR Lot 1 Block 1 Tax Parcel No. Heritage Square Addn. Street Address: 425 Chan View Chanhassen, Wn. 3D31/ II The undersigned having the Minimum Improvements and the eMarket Value - Iment Property upon which the Minimum Improvements are to, be constructed pursuant to the attached Assessment Agreement, and being of the opinion that a "Minimum Market Value" set forth in this Certification Iappears reasonable, hereby certifies as follows : The undersigned Assessor, being legally responsible for the assessment of the Redevelopment Property (more I particularly - described in Exhibit "B" to the attached Assessment Agreement) hereby certifies that the market value assigned to such land (the Redevelop- ment Property) and improvements (the Minimum Improvemen upon completion of construction hereon shall be not les an wo Millio, Fifty Three Thousand Dollar ($ 2,053,... .,, until termination of the attached Assessment Agr ement. IThe undersigned further certifies that the mar et value of the Redevelopment Property as of the date of execution of this certification is Three Hundred Twenty Eight Thousand Five Hundred IDollars (S 328,500.00 ) . For the purposes of this certification, the words used herein I have the definitions utilized in the attached Assessment Agreement. I AL€4.12A.,d /lei ie /_...) Assessor for the Ci ie of • Chanhassen ISTATE OF MINNESOTA ) ( ss. • COUNTY OF CARVER ) IThe fo v4 oing instrument was h (� acknowledged before me this II 02 1 day of - , 19 , by _ VF /IN /'1 1c J— , the Assessor or a City of Chanhassen. • Os':1.114:/ . /.,! AA...L.1 I Notary Public 'ROM IF 14" ryP C vE T 'r l My Ion e 121904 I 1 0. I ff. _ 'a 0 - : i-i 0 pm t: RAN ? I S LAW'ti'ti' F I F:M F. 0 7. LA ' OFFICES 1 GRANNIS, GRANNIS & KNUTSON DAvrn L. GRANNIs-1574-1961 PROs rss oNAt ASSOCIATION ELLroTr B KNETSCH DAVID L. GRA IN•s, R.- 1910-1980 MICHAEL . MAYER. } POST OPEICE Box 57 J VANCE B, GRAVi:1s 403 NORWLST BANK BUILDING TELECOPIER vANGF. B GRANNIE TA.* 161 NORTH CONCORD EXCHANGE (612) 45S-2379 DAVID L. GRANNIS, III t ROGER N. KNUTSON DAVID L. HARM SOUTH Sr. PAUL, MINNESOTA 55075 >:i TELEPHONE: (612) 455.1661 •AUo A✓'MITTEP To ' PIACTK►IN wacoNNN October 19, 1989 VIA FACSIMILE TRANSMISSION tMr. Don Ashworth Chanhassen City Hall ' 690 Coulter Drive, Box 147 Chanhassen, Minnesota 55317 ' RE: Heritage Park Apartments Building Permit Fee Dear Don: I have reviewed Brad Johnson 's letter of September 17, 1989, regarding the building permit fee for the Heritage Park apartment building. The valuation upon which the permit fee was ' calculated was taken from state valuation tables. The City has used that valuation method for years. The advantage is that the City does not have to do a detailed cost analysis of every building. Generally speaking, the valuation table underestimates the building. The City cannot divert from its permit fee valuation methodology for one building unless it is prepared to give the same consideration to everyone. I do not think a refund ' would be appropriate. Very truly yours, GRANNIS, GRANNIS & KNUTSON, P.A. BY: Roger V. Knutson RNK:srn icc: Todd Gerhardt Scott Harr CITYOF , CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 ' MEMORANDUM TO: Don Ashworth, City Manager ' FROM: Scott Harr, Assistant Public Safety Director DATE: July 10, 1989 SUBJ : Heritage Park Apartment Building Permit Fees In response to your memo of June 19, 1989, referring to Brad Johnson 's letter of June 5, 1989, concerning permit fees, in ' which Brad requests a fee rebate of $4, 526 . 66 . I have asked Steve Kirchman to provide specific information ' regarding his determination of the amount, which appears in his memo to me dated July 3, 1989 . Both Jim Chaffee and myself have reviewed this, along with Building Official, Ron Julkowski , and we are all in agreement with Steve ' s calculations . Furthermore, ' we agree with Steve ' s recommendations that changes in our present procedures not be made . 1 I 1 ' 4iG.((^M2es4 4113