4. Consider Interim Sewer & Water Service, West 184th St. r
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CITY OF
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�"' -x 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900 ,"°" % ` F`,
MEMORANDUM ...,V.m -
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T0: Don Ashworth, City Manager -}-
46-4L/ ,
FROM: Gary Warren, City Engineer e�
DATE: July 21 , 1988
SUBJ: Consider Interim Sewer and Water Service, Craig Morton
Property (Frank Beddor, Jr. ) , West 184th Street/TH 5
File No. PW156
At the July 11 , 1988 City Council meeting, Council tabled the
request by Mr. Frank Beddor, Jr. for interim sewer and water ser-
vice for his property located on the east side of 184th Street in
Eden Prairie (minutes in agenda packet) . Staff was directed to
look further into the request to clarify the ambiguities. Mr .
Fortier, on behalf of Mr. Beddor, has researched their files and
supplied the City with the attached information concerning the
understanding which existed at the time of the Park One develop-
ment for interim service to this property. I likewise requested
them to state their specific request since there was some con-
fusion as to what exactly the City was being requested to do.
The attached July 18 , 1988 letter from Fortier and Associates
addresses the specific request.
After reviewing this material and the discussion from the Council
meeting , I believe I perceive a willingness on the part of the
Council to support such an interim service connection, however,
the difficulty arose in establishing exactly what is available in
the way of "excess" utility capacity. The City obviously cannot
afford to be in a position where we are providing utility service
to a neighboring user at the risk of not having service available
to our own residents and/or commercial/industrial users. I
believe, as Mr. Fortier has stated, this would also be contrary
to Mr. Beddor 's wishes since the most likely property adversely
impacted by such a scenario would be his own Park One develop-
ment.
I believe the attached statement that "The City of Chanhassen
will look favorably upon providing temporary utility service to
the Eden Prairie property adjacent to Park One to the extent that
excess utility capacity within Park One permits" is a reasonable
commitment for the City to agree to with some additional qualifi-
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July 12, 1988 FORTIER &ASSOCIATES, INC.
ARCHITECTURE PLANNING INTERIOR DESIGf
Mr. Frank Beddor, Jr.
7951 Powers Boulevard
Chanhassen, MN 55317
Re: CRAIG MORTON PROPERTY
Comm: 86-19
Dear Frank:
At last nights City Council meeting we were partially successful in
securing a letter of consent from Chanhassen to serve the Eden
Prairie proerty. The issue was tabled to enable suitable language to
be written.
, The council seems willing to issue the letter, but is concerned about
available capacity and whether or not they are making a firm
committment. They will agree only to the extent that:
1. Excess capacity is available.
2. It is a temporary hook-up. •
3. Developer pays all expenses.
4. It is agreeable to other agencies, i.e. Eden Prairie, etc.
I believe that all of the above can be resolved and serve to protect
your interests as well as, the City of Chanhassen.
To resolve these issues, I will be working with Gary Warren,
Chanhassen City Engineer. It will be necessary that we confirm
capacity and the anticipated uses for Park One and contrast this with
the design capacity of existing utilities. I also believe that the
City will be concluding its study on water capacity and that will
also affect capacity for Park One. Hopefully, we can conclude our
study to enable the City Council to act on July 25.
Yo
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Daryl P. Fortier, 7
DPF/sf CITY OF CHANHASSEN
cc: Jules Smith [EMBED
ED
Gary Warren
JUL 13 1988
ENGINEERING DEPT.
408 Turnpike Road, Golden Valley, Minnesota 55416 (612) 593-1255
•
CITE CHANN SEN
July 14, 1988 JUL 18 1988
PARK ONE/CRAIG MORTON PROPERTY
Comm: 86-19-01 ENGINEERING DEPT,
FILE REVIEW OF PARK ONE
This is a review of correspondence files for information pertaining
to utility services to the Eden Prairie property from the Park One
development.
12/8/80 : Schoell & Madson, Inc. Feasbility Study
Prepared with Don Ashworth, Bill Monk and approved by
City Council and Planning Commission.
This feasibility study results in the development of
Tax Increment District 2 and also the extension of
West 77th Street to the Eden Prairie property line.
The report specifically notes:
1. The report was coordinated by the Staff of Chanhassen
with Eden Prairie regarding shared utilties and Dell
Road construction.
2. West 184th Street was being described as a 28 ' road down
the center line of Eden Prairie and Chanhassen. It was
stressed that all Chanhassen needs is a 28 ' wide local
street, but that Eden Prairie may have concerns about
upgrading the street to a collector status.
3. Regarding sanitary sewer, it was noted that the size is
appropriate for Industrial and that sharing with Eden
Prairie may be desirable.
4. Regarding water, it is noted that the water service is
looped and "water service to Eden Prairie east of The
Press is possible" and that the "Chanhassen system is
capable on a limited basis" of providing this service.
u,
5. In the summary letter to Don Ashworth, Schoell & Madson
points out: "Should the City of Eden Prairie so desire,
it is possible for Chanhassen to provide water service
and temporary sanitary sewer service to areas east of and
adjacent to West 184th Avenue. "
Rui 1
RIOV 0.30
`�n-fig AS&°G 3
Page 3
File Review of Park One
July 14, 1988
Comm: 86-19-01
1/4/85: Frank Beddor, Jr. confirms that he has purchased Jerome
Carlson' s interest in Park One.
2/2/85: Correspondence from Craig Morton confirms that he has
tentatively offered the land to Darrel Gonyea whose
interest is in resale for profit and not development.
Darrel Gonyea has no interest in development or any
improvements that would cause assessments to be placed
against the property.
2/20/85: Frank Beddor, Jr. requests our firm to proceed with the
development plans for industrial use assuming the
expansion of The Press, Inc. with a 250,000 S.F. building
on the Craig Morton Property.
3/1/85: Correspondence from Frank Beddor, Jr. and Darrel Gonyea.
Frank indicates a willingness to consider the purchase,
of the Craig Morton Property and notes that the City of
Chanhassen is willing to proceed with improvements if the
road can be put down center line of Eden Prairie and notes
that in exchange utility service to Eden Prairie could be
delivered through Chanhassen, if necessary.
5/21/85: Correspondence from Frank Beddor, Jr. to Craig Morton;
copies to Bill Monk and Don Ashworth. Confirms recent
meetings and conversations with all parties regarding
interest to develop the road to Highway 5 . Issues appear
to be where to place road and utilities. Bill Monk to
work with Eden Prairie regarding common items.
7/22/85: Correspondence from Frank Beddor, Jr. to Daryl Fortier;
copies to Don Ashworth and Bill Monk. Beddor agrees to
petition Chanhassen for road and utility services in Park
Li%One. Seeks cooperation with Eden Prairie and Craig Morton
Property.
8/5/85: Correspondence from Jules Smith to Don Ashworth.
A formal request to proceed with the feasbility study for
Park One improvements.
8/13/85: Correspondence from Bill Monk to Jules Smith.
Monk notes that he will hold the request for a feasbility
study from 60 to 90 days to allow completion of the Downtown
Study and T. I.D. 2 district financial studies to be
completed as these two projects are interrelated.
Page 5
File Review of Park One
July 14, 1988
Comm: 86-19-01
Regarding water service, it is pointed out that they are
providing 8" service which is based primarily on the fire
protection requirements of large industrial users. There
is no mention of sharing of water service.
4/21/86: City Council reviews feasibility study and passes
resolution calling for public hearing on improvements.
5/5/86 : City Council holds public hearings and authorizes the
preparation of plans and specifications.
8/20/86: Preliminary contract drawings from R.C.M. to Fortier
& Associates, Inc. Review of the contract drawings
indicate clearly that sanitary sewer and water are
stubbed to serve the Eden Prairie site.
The dates of the remaining events are, of course, less important.
Suffice it to say that the City Council approved the construction
drawings, that bids were let and a contract was accepted. The
construction did include the sanitary sewer and water stubs to
provide temporary service to the Eden Prairie property.
The issue of providing services from Park One to Eden Prairie is
certainly not new and has a considerable history in our files. It is
clear that the City of Chanhassen has been willing to extend
utilities to the Eden Prairie site on a temporary basis. Although
not as clear, I am reasonably certain that it was understood that the
City was not guaranteeing adequate utilities, not that other parties
would agree to the arrangement.
SC}-4OEL L &. MADSON,
City of Chanhassen
c/o Mr. Don Ashworth, City Manager
Page Two December 8 , 1980
St. Paul and Pacific tracks on the north, and West 184th Avenue
on the east.
Park One is a proposed 32. 3 acre commercial-industrial develop-
ment of the area above described as the tax increment district.
The Press, Inc. and Reply Systems , Inc. are currently located in
the southwest corner of the Park One area.
The purpose of this report is to provide an engineering
feasibility study of municipal improvements required for this
development. This study is a necessary step in the process dealing
with the assessment of costs for a municipal improvement project as
defined by State Statute, Chapter No. 429 .
Prior to submission of this report, we have held discussions
with the following:
1) City staff including city manager and attorney.
2) MnDOT District No. 5 staff in order to determine their
requirements for the Trunk Highway No. 5 - West 184th
Avenue intersection.
3) City of Eden Prairie staff to discuss exchange of utility
service, cost sharing of 184th Avenue/Trunk Highway No. 5 ,
w and current status of their land use planning.
4) The developer and his planner. The developer' s proposed
layout was the basis for our work.
STREETS
Attached Drawing No. 11002-1 best indicates proposed street
improvements. Existing streets servicing the area consist of a
•
ASSEN
if34. 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
•
May 16 , 1984
Mr . Frank Beddor
Instant Web,. Inc.
7951 Powers Blvd.
Chanhassen , MN 55317
Dear Mr . Beddor:
The City Council recently reviewed and approved the preliminary
financing plan as described in the attached packet. The City is
very encouraged by the financial status of the Tax Increment
District and hopes to be able to assist in further development of
the City ' s commercial/industrial base in the area . I would " •
request that you look over the attachments and call me as con-
venient to discuss the matter further .
Should you have any questions , please feel free to contact me .
Sincerely ,
William Monk
City Engineer
WM:k
via 41 i:fi:
Enclosure
JUL 10 1988
ENGINEERM
Mr . Don Ashworth
May 7, 1984
Page 2
assistance of Juran and Moody show that $2 .1 million will be
generated in place of the $1 . 2 million originally estimated.
Since it has always been assumed that funds generated within the
district would be pledged to these improvements , this increase in
revenue drastically reduces, if not totally eliminates , the por-
tion of the costs to be covered by local participation through
•
assessment.
Three cash flow and debt service models are attached representing
various financial situations . All three are based on several
constants that include:
- 6% interest earnings on the unencumbered fund balance,
- requirement that a reserve be maintained in the amount of
the following years payment (to assure payment of taxes) ,
- inclusion of existing bond issue in the amount of $315 ,000
for drainage project.
The first model is for a $1 ,580, 450 bond issue that covers all
remaining improvements . This scenario leaves $355 , 980 to be
assessed to adjacent properties . This represents a worst case
model and without state grants would represent total special
assessments against CPT/The Press . The second model calls for a
bond issue of $1 , 255 , 700 and results in a net surplus with no
local assessments being required. This model includes an assump-
tion that MnDOT will pay for full costs associated with the TH 5
widening which they have stated they will consider . The third
and final model presented is for $1 , 412, 660 and calls for $97,163
in assessments . This model is based on the City pledging 50% of
the MSA monies generated by the construction of Lake Drive East
to cover costs of the project since the road has an MSA designa-
tion. The remaining 50% would be deposited into the City ' s
already. established General State Aid Fund for future use.
At this point , I feel it is important to solicit Council comments
on the financial models and their inherent assumptions before con-
tacting affected property owners . With the Council ' s approval of
a general financing plan , staff could then initiate detailed
•
negotiations on required agreements should the owners wish to
proceed. This office would also then be able to contact MnDOT
requesting use of cooperative agreement monies for the TH 5
widening .
In light of the preceeding financial information , I believe that
the improvements to Lake Drive East as detailed in the OSM report
of December, 1983 have now been proven feasible from both an
engineering and economic perspective. It is therefore the
recommendation of this office that said study be approved by the
�� A
cceptance of the feasibility study, including the proposed financing
lan is recommended. By doing such , the Council is :indirectly
uthorizing staff to:
- Make application for cooperative state/city funding of
state highway improvements (application deadline of May 15 ,
1984) ; and
- Make application for municipal state-aid allotments for
Lake Drive East, and
- Prepare specific special assessmentrt reements s withaid ••
CPT/Press to guarantee that any
through special assessments , and
- Finalize road alignment/future connection agreements with •
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Eden Prairie.
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2ouncil action to accept reefeasibility
Citystudy
Councilctodproceed with
financial model does not require
this project should it be found that any or all of the above
applications/negotiations prove unproductive..
•
u,
Don Ashworth
July 7 , 1988
Page 2
main discharges in that it is a 8-inch sanitary sewer line
which at minimum grade has a capacity of approximately 300
gallons per minute. I therefore believe it would be difficult if
not impossible for the City to commit to servicing the Beddor
property without significantly impacting the developability of
the existing vacant properties within this service area. Other
options may exist for Mr. Beddor such as constructing his own
pumping station , however, he still needs to find a gravity sewer
line with sufficient capacity to accommodate his flow rate.
Water Service
At times such as this when we are encountering watering bans and
restrictions , it is hard to imagine adding an additional wet
industry into our system. As Council is aware, we are taxed at
present to accommodate even our existing users . This is
obviously impacted by any further improvements in capacity which
the Council may consider for the water system such as the comple-
tion of the Lake Lucy Road trunk watermain improvement project
and/or the construction of an additional well. Staff is
currently in the process of updating our existing consumption
projections to get a better handle on where we stand with the
need for future water system expansion. This should be complete
in the near future and will give us a better idea as to the abi-
lity to accommodate this additional request. At this point in
time, unless the developer was willing to agree to allow the City
to shut water off to their business under a crisis situation as
determined by the City (which I believe would be a very unmanage-
able situation for them) , it is difficult to say with certainty
that we could guarantee their connection into our system.
At this point in time I would have to advise the Council that a
waste water connection for this property would be impractical
without impacting our ability to service other vacant property in
the Park One service area. From the standpoint of the water con-
nection, it is impossible to make a commitment until the results
of our usage update is completed. it may turn out that without
the City ' s installation of any additional well capacity, that we
would be hard pressed to accommodate any additional wet industry
at this time. I therefore have to recommend that at this time
the City cannot commit to servicing this property with sewer and
water. Concerning water services , this can be reviewed once the
system update has been completed, however, it appears from a
wastewater standpoint we are very restricted in our ability to
serve.
Attachment : June 10 , 1988 letter from Fortier & Associates
k
a
Page 2
Mr. Gary Warren
June 10, 1988
Comm: 86-19-01
We are seeking this confirmation only to provide reasonable
assurances to this development that utility services can be made
available. This does not mean that the development will indeed
require a hook-up to the Chanhassen utilities. Rather, it is quite
' possible that utility services will be made available through Eden •
Prairie. Should the utilities at Eden Prairie not be available; then
the developer would probably seek utilities from Chanhassen on an
interim basis until permanent facilities are available through Eden
Priaire.
If you have any questions regarding this request, or if I can be of
further assistance, please do not hesitate to call.
Yours truly,
s ":""1"%-
Daryl P. Fortier, A. I.A.
DPF/sf
cc: Frank Beddor, Jr.
Jules Smith
Jim Benson
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