2. Reallocation of Year XIII Comm Dev Block Grant Funds r ,
CPI
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._ CITY OF
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CHANHASSEN'
_ �== 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN MINNESOTA,55317
I (612) 937-1900
MEMORANDUM = "`'''"'
1 TO Don Ashworth, City Manager .!`"' `
I FROM: Barbara Dacy, City Planner
DATE: April 21, 1988
I SUBJ: Reallocation of Year XIII Community Development Block
Grant Funds
IBACKGROUND
As was discussed at the March 28, 1988, Council meeting, the
$26,507. 00 originally allocated to the handicapped access for the
I community center needs to be reallocated to another project. At
that meeting, the Council discussed two options:
I1 . Demolition expenses for downtown buildings.
2 . The housing rehabilitation program.
IANALYSIS
The proposed amount of money to be reallocated would cover the
I cost of demolishing at least one of the four buildings remaining
on the north side of West 78th Street. As to the housing rehabi-
lation program, the Hennepin County staff has indicated that they
I would put together an advertising program to publicize the
availability of funds. The city has participated in this program
since 1983 and approximately 10 to 15 homes in the Carver Beach/
Red Cedar Point and other older areas in the city have received
Iassistance from this program.
RECOMMENDATION
IStaff has no preference as to which program should be selected by
the Council. Therefore, it is recommended that the City Council
I adopt the proposed resolution and move to reallocate the monies
in the Year XIII fund to either the housing rehabilitation
program or for demolition expenses to remove buildings in the
downtown redevelopment area.
IATTACHMENTS
I 1 . City Council minutes dated March 28, 1988 .
2 . Proposed resolution.
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: RESOLUTION NO:
MOTION BY: SECONDED BY:
RESOLUTION APPROVING PROPOSED REALLOCATION OF YEAR XIII
URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
AND AUTHORIZING ITS SUBMITTAL
WHEREAS , the City of Chanhassen, through execution of a Joint
Cooperation Agreement with Hennepin County, is a cooperating unit
in the Urban County Community Development Block Grant Program;
and 1
WHEREAS, the City of Chanhassen has developed a proposal for
the use of Urban Hennepin County CDBG funds made available to it,
following a public hearing on April 25 to obtain the views of
citizens on local and Urban Hennepin County housing and community
development needs and the City' s following proposed reallocation
of Year XIII Urban Hennepin County Community Development Block
Grant funds .
$26 ,507 '
BE IT RESOLVED that the City Council of Chanhassen approves
the proposed reallocation of Year XIII Urban Hennepin County
Community Development Block Grant funds and authorizes submittal
of the proposal to Hennepin County for consideration by the
Citizen Advisory Committee and for inclusion in the Year XIII
Urban Hennepin County Community Development Block Grant Statement
of objectives and Project Use of Funds.
Passed and adopted by the Chanhassen City Council this
day of , 1988 .
ATTEST:
Don Ashworth, City Manager Thomas L. Hamilton, Mayor
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1rCity Council Meeting - March 28, 1988
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Barbara Dacy: It was our understanding that Mr. Luse purchased the trailer
from Sperry in St. Paul and it had been used as a temporary office space in
that location.
Mayor Hamilton moved, Councilman Johnson seconded to approve the First
Supplemental Settlement Agreement for David Luse. All voted in favor and
motion carried.
Mayor Hamilton: Dave, the only concern I have is for your employees working in
there are made aware of where to go in case of a storm which get in the
summertime. There have been so many things recently on the news about these
darn homes, where people are living in them. I would hate to see anybody get
caught in there if there was a storm or something.
David Luse: I would say that it is strictly office. We have someone in there
right now and we have no intention of anyone spending the evening there. Maybe
the later hours working but that's the extent of it.
r••••"*.i..."°''
VISITORS PRESENTATION: There were no visitors presentations.
' a COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS ALLOCATION FOR YEAR XIV, LARRY
BLACKSTAD.
Barbara Dacy: I've got some additional information. First of all, Larry
Blackstad from the Urban Hennepin County Office is here tonight to answer
questions. I know several of you had some other suggestions and ideas for the
funding. Just to quickly review, last meeting you approved $15,000.00 for the
South Shore Senior Center. That leaves $17,197.00 remaining for Year XIV.
There are a couple of options available to the Council that we can meet the
CDBG regs on low and moderate income as well as some of their other eligibility
requirements. We have some Camp Plan work that does need to be finished up.
Mark Koegler has, we have entered the stage where we are finishing the last
couple of chapters of the Comp Plan update and are about to embark on the
public hearing process. We estimate that that would entail up to $5,700.00.
We also need to revise our Comprehensive Sewer Policy Plan as required by the
Lake Ann Agreement and part of the Comp Plan update. We're looking at a
couple, or I should say one consulting firm in particular and we have gotten an
estimate of approximately $11,500.00 so there is an option there for the
Council to use those remaining funds for our Comp Plan. Another option is that
you could, one of the original recommendations was to allocate the remaining
amount of money to the South Shore Center. Third, we have an ongoing housing
rehabilitation program that for certain areas of the city, as there is housing
rehab monies available and homeowners make application, they submit information
as to their income levels and so on and CDBG evaluates that and Hennepin County
determines whether or not they are eligible for the program. Some of the other
suggestions that were listed by the Council at March 14th, Mr. Blackstad has
responded to. Unfortunately again, based on the 1980 census figures,
Chanhassen does not have a low and moderate income population there, we're not
high onoucih in low and moderate income people to cross the threshhold for a lot
of these projects. You saw some of those other projects in other communities.
They have a different demographic make-up than Chanhassen has. Secondly, we're
operating under the 1980 census figures and those are outdated obviously, based
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City Council Meeting - March 28, 1988
Larry Blackstad: No, not even that. We bring it up to a standard that stops
the deterioration then anything else is up to the city. I think the best
example we probably have is, I'm trying to remember the name of it. It's a
house over in Eden Prairie someplace done by the local historic society. It
was one of the first homestead farm structures built in Eden Prairie. We got
involved and all we did essentially is secure the exterior and the roof to stop ,
the penetration of vermins and squirrels and rain. _ X11 we did was secure the
thing and said okay, now it's up to the Historical Society. Other things we
get involved in is reuse.
Councilman Geving: How about the demolition of the seminary right down on
TH 169? You've got demolition in here as one of the items in Hennepin County. I
That's an area that is fairly dangerous at this point. There are some old
structures down there and it's unsafe in my view. There's a possibility that
we could go in there and demolition the area.
Larry Blackstad: Is it part of a current renewal site?
Councilman Geving: No. Well, I don't know. It could be.
Mayor Hamilton: We just don't know what we're going to do with it.
Larry Blackstad: In order to qualify such an activity, it would probably be
done under a spot renewal basis. What you're going in is the Council, in your
case the HRA or the Council establishes that the existing conditions represent
a blight influence on the community. You could then say alright, in order to
eliminate the blight we have two choices. Either restore the buildings or
eliminate them. Not knowing anything more about the subject property at this
point in time, there would have to be some type of analysis done upon which the
justification would be made for the statement of blight. The possibility
exists.
Councilman Geving: I just have one other. Next week we are going to start a
dial-a-ride system in the community and one of the big things, our seniors meet
every Thursday and have to get transportation to the elementary school from
throughout the community. They pick-up rides or however they get there. A lot
of them can't drive. What is the possibility of having a fund set aside to pay
for the pick-up of these people on a dial-a-ride basis once a week. Pick them
up at their home, bring them to the community center. This is the only center
we have in the community, and take them back home at the end of the day.
Larry Blackstad: It's again, a possibility. Where we do transportation
programs, they usually center on a senior center or in some cases a medical
facility.
Councilman Geving: This is all we've got right now Larry.
Larry Blackstad: That we justify based on low to moderate income. We probably
need some information on the senior population in Chanhassen.
Councilman Geving: It's not a big thing. It's about 50 people that meet every
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Thursday and we're not talking about a lot of dollars except that this would be
a way for them to get to the center.
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City Council Meeting - March 28, 1988
Larry Blackstad: You just hit on one other subject. We have a requirement
J in
the program that was in the contract that you executed with us last summer. We
have a project minimum of $7,500.00 at this time and that just is an
administrative issue from the County side that we were running 150 to 170
properties a year and we're down to three staff who run this program from as
high as six a couple years ago. We just can't keep track of it. If it's a
real small project.. .
Councilman Geving: You're better off then, in that case, buying a van for them
and hiring a driver. •
Larry Blackstad: We do capital costs. I don't like to get into operating
' costs of vehicles.
Councilman Horn: When did this $7,500.00 minimum start?
Larry Blackstad: It actually started in Year XIII in the Statement of
Objectives that the County Board passed in about February of 1987. The
$7,500.00 as far as a contract issue will go into effect for Year XIV which
starts in July.
Councilman Horn: One of the other things that I had asked for at our last
meeting was a complete list of these projects. We still don't have those. The
reason I asked for that is I noticed that Brooklyn Park had several
transportation related projects. In fact, they have three different projects,
' 52.69 redevelopment projects.
Larry Blackstad: Right, that is the purchase of land adjacent to, I can't
remember the cross street. It was an intersection that they were buying out a
' couple of small businesses to redevelop the area. The City had gone through
the blighting analysis and established these businesses were a blighting
influence on the community. I think one was an auto salvage yard and another
' one was some other kind of scrap operation. The City wanted them out of there.
The roads were being improved, upgraded. The area is changing. If you're
familiar with Brooklyn Park, everything north of 85th Avenue has drastically
changed in the last couple years once the sewer moratorium was• lifted so now
they're going back and having to try to clean up some old uses of land that are
there.
' Councilman Horn: There's nothing in our downtown development program that
would qualify?
' Larry Blackstad: We did some work in the downtown project a couple years ago.
We bought part of the Ringrode and the extra parking land necessary to meet
your city code requirements on the...
Don Ashworth: The old Instant Webb building.
Councilman Horn: What about our other parking area here that we just had to
create or the demolition of some of these buildings?
Councilman Johnson: And it's for a daycare center.
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City Council Meeting - March 28, 1988 il
Barbara Dacy: Some of the issues were that the amount of allocation that we
III
had wasn't enough in some cases to make the acquisition work.
Don Ashworth: I don't know if we actively pursued an individual demolition.
Most of the demolitions have run anywhere from $10,000.00 to $30,000.00.
Councilman Horn: We have $30,000.00 I think. II
Don Ashworth: Hypothetically that may be another portion. You still have the
IIrear portion of the LeBallo structure. That needs to have an allocation made
on that. I would say that's probably $10,000.00 to $15,000.00 depending on, I
can't remember if that's a wood structure or not. I don't know if we've
explored that with Larry or not. I
Larry Blackstad: No. Barbara hadn't mentioned it to me. The demolition of
property, which are in your redevelopment district would be eligible as far as
your funds. You would have to go through the normal process where we require II
bids and the payment prevailing rates on the demolition.
Don Ashworth: If you were going to do that, I would highly recommend that we
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look at the seminary property over the downtown because you do have resources
basically allocated for the demolition. Not to say that we couldn't change
those allocations but in the case of the seminary property, we have nothing and I
we know that that is a problem that as a private ownership position and given
the magnitude of dollars associated with that with very little potential for
reuse, we're not allowing reuse for apartments or other types of high value
uses that may generate a private individual to be willing to take that down
III
themselves. I know for the past several years that that has been a real
problem for code enforcement and public safety, etc. that we have not been able
to resolve. I
Barbara Dacy: I was wondering if I could ask the Public Safety Direction, I'm
not even sure, I know there's been an evaluation of demolition costs on the
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seminary.
Mayor Hamilton: The estimate was $500,000.00 so if we could help. This is a
small portion of it.
II
Larry Blackstad: The seminary isn't by any chance a historic structure is it?
Barbara Dacy: No, it's not. II
Councilman Johnson: I'd like to see a study done of our seniors and what their
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needs are as far as their needs for dinner programs, meals on wheels or
whatever kind of programs. A full time versus a one day a week community ,
senior center and stuff like that. Would this type of study be eligible?
Larry Blackstad: We've done a couple of those over the years. We funded one II
in Minnetonka. We funded one in Brooklyn Center.
Councilman Johnson: I know the South Shore would like to do a similar study
ill
except it's more to find a new building.
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City Council Meeting - March 28, 1988
Larry Blackstad: Yes, they contacted me about that already. That type of a
study is an eligible expenditure of Block Grant funds.
ICouncilman Johnson: I think we need to know what our senior needs are right
now. We need to do the study to do it. This is a good opportunity to me to do
that study.
Mayor Hamilton: Anything else?
' Councilman Johnson: That was the main one unless we've got some senior access
places anywhere else in town that we can utilize the money for, for ramps or
whatever. I just can't think of any right now that we need ramps or anything
' for.
Councilman Boyt: I've got a couple. I guess I would agree that the idea of a
study would be good Jay. I've heard several good ideas here. I'd like to see
us consider taking this year's money and putting it into a potential senior
room in the community center. I think that was along the.lines of what we
tried to do last year. I'm optimistic that the community center will pass when
it comes to a vote again.
Larry Blackstad: Can I comment on that? I think as Barbara pointed out, maybe
' she didn't use quite the word we used in our earlier discussion, it's more of a
retrofit. If you approach it in that way we can probably make it more useable
for you, the dollars. Block Grant funds are not without strings. I'll be very
upfront about that. One of the more difficult strings we encounter is a law
that says you pay prevailing wages rates on any construction done with Block
Grant funds. If $1.00 of Block Grant funds goes to the project, it must take
the place of the whole project so when you start talking about the community
' center, it might be a value to consider at what point in time you consider
whether or not the senior project is...
' Councilman Boyt: So it would be possible to build a community center and then
come back after construction sometime during 1989 and possibly make an addition
to the senior room?
' Larry Blackstad: Again, your study that Councilman Johnson mentioned, would
provide possibly a very good basis for a decision at that point in time but at
this point in time...
' Councilman Boyt: There might be other uses for that money at that point but I
would see us some way tying the money into our own community center and senior
activity there. I have another issue I'd like to check with you. We had
mentioned earlier this evening that Carver Beach and Red Cedar Point had been
areas where we had used a good bit of housing redevelopment money. It would
seem to me that one thing that would also be helpful to those areas would be to
' have some sort of a neighborhood clean-up program. Now if those areas were
eligible for this sort of rebuilding of parts of it, wouldn't they also be
eligible to have some sort of clean-up drive.
Larry Blackstad: This was, I think Barbara made a slight error in her
presentation on that program. The project housing rehabilitation is client
based. There are no geographic limitations in the community. It just depends
on the clients. We had the situation where we've had a concentration of
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City Council Meeting - March 28, 1988
clients and I think in this case we're talking about 5 or 6 that we've done in
the city of Chanhassen at this point in time between those two areas, have come
from those parts of the community. There's no way, based upon that experience
to say that an area is low or moderate income from our experience.
Councilman Boyt: I follow you. So that's not a possibility? '
Larry Blackstad: Not unless you want to do a neighborhood income survey and we
have a methodology that's been accepted by HUD and a format and everything that
the City has to follow.
Councilman Boyt: I would suggest that we take this money and tie it in with
the senior room in the community center. The reason I would suggest that we
not put it towards the seminary is if the bill is anything like $500,000.00, I
don't see it happening in the next year. And if it doesn't happen in the next
year, these funds would be essentially unallocated. '
Mayor Hamilton: No, I disagree. That seminary is going to have to have
something done to it within the next month. Something. It's going to be an
expensive proposition whatever happens there. Whether they tear it down or
fence it or do something to it but it's got to happen immediately because it's
a dangerous situation 'down there.
Councilman Boyt: They will block it off. Excuse me Mr. Blackstad, you did say
that you would make a building basically vermin proof, weather proof.
Larry Blackstad: An historic structure.
Councilman Boyt: It's been there for 100 years.
Larry Blackstad: My one caution is, you make a historic structure, you'll
never tear it down.
Mayor Hamilton: I think we've given staff a lot of ideas on things to look
into and we don't have to do anything tonight I don't think.
Councilman Geving moved, Councilman Horn seconded to table the item. '
Larry Blackstad: I realize that I'm a visitor but I'm going to have to press
the City. I have to go to the Citizen Advisory Committee on April 19th with
the listing of projects. Not only from Chanhassen but the other 43 cities in
our program. In order to meet that deadline which ties me in with the Hennepin
County Board Agenda process that brings me to a conclusion of this whole thing
in order to meet my deadline with HUD, I'm really going to need an answer from
the city by next week.
Mayor Hamilton: Prior to the 19th I would think, right? '
Larry Blackstad: I need it, in order to get my materials ready for the
Advisory Committee, like by the 5th of April.
Barbara Dacy: ' I have a suggestion. I would propose this. Todd tells me we're
looking at demolition of the remaining buildings sometime this summer, we could
reallocate Year XIII moneies for demolition which total about $26,000.00. That
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City Council Meeting - March 28, 1988
could take care of significant amount of costs for that and then if the Council
so chose for Year XIV, tonight they could act on for a senior study, $5,000.00.
Councilman Geving: Put it all in there.
' Larry Blackstad: And then reallocate the rest after the study.
' Barbara Dacy: But if there is a pitch that staff would like to make, if you'll
allow me to do it, we could use the money for the Comp Plan update. Especially
the sewer policy plan. That's a significant portion of the Comp Plan update
and it's really important to us as far as numbers and Met Council and so on but
' that would be, I think that would try to get kind of a compromise situation, we
still could get the demolition objectives done this year and still reserve
things for Year XIV and if we do find things don't work out, we can reallocate
' it then.
Larry Blackstad: We do allow you to reallocate. What we need is, I need a
' program that I can take to HUD.
Mayor Hamilton: Let me suggest this then. We could allocate $11,500.00 for
the Comp Sewer Policy Plan. We could reallocate the $26,507.00 for demolition
' of the remainder of the downtown area, which would still leave us about
$5,500.00 or somewhere around that neighborhood which we could put towards the
senior study and we could still reallocate some of these things.
Barbara Dacy: Do we need $7,500.00?
Larry Blackstad: Yes, if you go $7,500.00 for the one.
Mayor Hamilton: Okay, $7,500.00 for the senior study and take the rest out of
the demolition so we're not quite as high there.
' Councilman Johnson: Mr. Blackstad, do we have to do the reallocation at this
time or the $17,197.00 at this time?
' Larry Blackstad: You have to deal with the $17,197.00. The reallocation is a
question, as Barb said, there's a whole other public hearing process you have
to go through for that.
Councilman Johnson: So for tonight we're actually only working with the
$17,197.00?
' Barbara Dacy: That's correct.
' Mayor Hamilton: Bill, you had a question.
Councilman Boyt: It really was in regards to the $26,000.00. I think the idea
of giving that to rehab would probably pay benefits to the city in areas that
we don't have funding allocated and we do have funding allocated for the
destruction of the appropriate areas of downtown.
Mayor Hamilton: Since we're dealing with the $17,197.00 tonight then, if we
allocate $11,500.00 to the Comp Plan and the remainder to a senior study. No,
that's not adequate. $7,500.00 to a senior study and the remainder to the Comp
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City Council Meeting - March 28, 1988
Sewer Plan Update. How's that. That will accomplish what you need, right?
It will leave it a little bit short but that's pretty close.
Resolution #88-21(b) : Mayor Hamilton moved, Councilman Geving seconded to
allocate $7,500.00 to conduct a study for the senior citizens of Chanhassen and
allocating $9,697.00 for the Comprehensive Sewer Policy Plan. All voted in
favor and motion carried.
ACCEPT TETON LANE FEASIBILITY STUDY, ALTERNATE 4.
Mayor Hamilton: We got a lot of information here. I don't know that I ever
saw Alternate 4. I'd like to have seen something that would indicate to me
what the heck it is.
Councilman Horn: That's the one we proposed last time.
Mayor Hamilton: I know but I don't see anything here. I know we talked about
it. '
Bill Engelhardt: The reason there wasn't a map included along with the report
is that Centex was still working on their alignment for the cul-de-sac in this
area. If you recall, in their initial proposal for Phase 2, they had a
cul-de-sac included up in the Donovan property and we just received this map
today where they had finally worked out the details for the lot sizes in the
Phase 2. The change would be, and the way that Phase 2 will come in, Road G -M
will stay all up on their property. These lots will all, I believe will meet -
the city standards. Concerning Teton Lane, we'll have a 33 foot easement in
the rear of the right-of-way and construct a 22 foot bituminous roadway from
Lilac Lane up to their property line, the Centex property line. At that point
we're proposing that a barrier be installed and neck the driveway down to a 10
foot bituminous lane and then landscape it with shurbs and bushes in this
corner. The reason for that is we wanted to not give the appearance that this
roadway would be a through road at some point in time and we felt that by going
down to a 10 foot bituminous in this area, that would accomplish that. We also
felt that the 22 foot wide bituminous roadway that would be constructed would ,
accomodate the traffic from the area. In effect we have one property owner,
the Natoli property that would be using that as an ingress/egress point. The
Ware's could eventually use it. They do cross the Pickard property to get onto
Lilac. They could eventually use it so really our number of property owners
that will be using this 22 foot lane is very minimal and it would provide the
surface area that would be capable of carrying the emergency vehicles in and
out. The sections for the proposed roadway as we said in the report, would go
from 6 inches of Class V rock to 2 inches of bituminous mat to 10 inches
depending on what the soil conditions would dictate out there. We're
estimating the cost to use the 10 inches and the 2 inches to give a maximum
number so we know what we should have to work for. Any plan for Teton Lane to
be prepared in conjunction with the Phase 2 of Curry Farms, it would go through
the process of approval and review by the City Engineer prior to construction.
I think you did receive a letter from Centex stating they were agreeable and it
was feasible and they would be agreeable to carrying the cost.
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