7.5a Cnty Rd 17(Powers Blvd)-TIF for Instant Web Companies & Empak
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> 890COUllERA'1)JltVE .P.():eoX141. ;~~i;MfNNESOTA 55317 .
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MEMORANDUM
TO:
Don Ashworth, CitY Manager
FROM:
ToddGerhardt~ ASsistant City Manager
DATE:
October 8, 1997
SUBJ :
Review ofTIF Assi$tatlce for Instant W~ Companies ~a~
Listed below is the TW anal~is.f()r both InstahtW~ Cotn~~4,~~- 'llulve also
attached minutes from the City Council meeting-on Apri127, 1992 ~&the first public
hearing for the County Road #17 road project. ~tltese tUin~, staff and Mr. Srl1ith,(a~Y .
representing Instant W ebCompanies) discuss theparticipatWn in the, HIlA's speciat aSsessment
reduction program.. Staff has.atso inets~~ tiJPes sit1tethat,nt~g,witb.:bQth ~...ant Web
'Companies and Empak representatives regarding their particiPation in the speciaf..es~
reduction program.
TiF Availatile:ftJr ~$pal' '
Empak
1991
$212,209'.44
1991
$206,616.19
1'993'
$191.983..62
Total
$616,869.25
/ Total Assistance Received from 1991 to 1993
(Specials--$ I 95,-000 + land write driwn....S3S8,450)
Total Credit Available ($616,869/.25 - $5S3~4W.2S)
$553,450.00
S 63,419.50
Instant Web
United Mall.
Victory Envelope
Ttltat
nil' Avalablefor I,,*Dt WebColIJ.pdks
1991
$244;970.94 x 3 years
$191,861.56 x 3 yeats
$207,363.32 x 3 ~ears
AmouDt
$134,9tZ.82
$593,614.68
'$622,089.96
$1,9SQ;617.40
:,1; _,
-I: "
> ,
, '
"
Mr. Don Ashworth '
OctoberS, 1991
Page 2 '
i.,,;. j.
.;-: '!~"-
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RecordssbOw that lnstantw.tompani~teeei'Ve6,$l~l~484t~jn'$PCCial as~~: ' "
assistance and no land'write~ . ' , ' ' '
Based on. these findings, Instant Web Com.panies:,~d ~.eu~~e for $1 ,769,133.' If assistance
is grant~ staff'woUld~ 'flat the ci&..~~t '.att'to:~Prlva~" , "
Redevelopment Agreements $td~111ent ~t$. ,~ tbo~sm;- ~en,tt", ,
the city would eStablish .minitn1JJ:n ltUlllet valut$; wlUcb, Would be in plaee- .n1he~ diStricds '
decertified in 2004, ba$ed on the foUQWingvat\l6'S:
Co.,aDies
Vahle
$3<~612;OOO
54,486,700
$3t884,~
53 ,433 700'
i ", , , "
Empak
Instant Web
United Malling
VictorY Bnv~'
St8ffwould also reconunend that 00 as8is~i~ pittedt!> thev-aeant lot {PID No.
2S.56S0~),~Use'iJis:un.vel~and':t(ot~tn--JO ~mDisirict.
A TTACBMliNTS
1. City CoUi1cllminuteS dated Apri127, 1997.
2. Locaiiontnap. ' , ,
3. Tax $tatetnet1ts. . ;,' ':
4. Letter ftom'1erome Carlson, Instant Web ~,dated.septerl1bet 18, 1997.
5.' Lettet ftomRobert E. Boyle dated ~aS;'i997: ,
, ,.
Q:\admin\tg\tifempak.iwAoc
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City Council Meeting - April 27, 19~2
Councilman Wing: The only question I've got also, relates to the fact that this
is part of a stretch that not too aany weeks ago we discussed the aoratorium on
and .aking that a foraal aoratoriua on building until we get the corridor study.
We've elected not to do that and not charge the owners and developers with such
a .ove. But this does fall in our right kind of the middle of our TH 5 corridor
study. Oon, I'd like you to address that issue also because I think it's fair
that these people be fully aware of what we're trying and attempting to do out
there. How this aight be affected by that, if at all.
Don Ashworth: As another itea within your packet is a proposed work schedule
associated with our corridor plan. Hopefully what will be achieved through that
process, who potential players may be on the task force that would sit and
potentially look at what type of restrictions we aay be placing on properties.
It .ay include setback. It may include density. It may include preservation of
wetlands, etc., etc.. That also is another report that Hr. Worthington'should
take a look at and potentially their firm may be one of the. that may even sit
on that group and they .ay want to consider that.
Mayor Chmiel: Right. I don't know if you've seen this particular study that
we've gone through. If not, I'd like to give you this copy for you to take
along because I do have an additional copy.
Bob Worthington: To answer your question, yes. We have seen that study. Mr.
Krauss gave us a copy when we had an earlier meeting with hi. but I'll take
another copy. And the other request is, could we have, included in your meeting
with Mr. Worthington portion of that proposal, arepresentative fro. the Chaska
Gateway Partnership.
Mayor Chmiel: Very good. Thank you. A motion was on the floor with a second.
Oiscussion that Don had indicated.
Councilwoman Dimler: Normally we don't approve...on Visitor presentations.
Hayor Chmiel: No we don't approve anything on this as a presentation.
Councilwo~an Di.ler: Do you want to suspend the rules?
Hayor Ch.iel: No, I don't think we will. We'll need to suspend it. I would
suggest that we re~ove the first and second and just carry it through and Don
will take care of that.
..0
PUBLIC HEARING: FEASIBILITY STUOY UPDATE FOR COUNTY ROAD 17 IMPROVEMENTS SOUTH. ~
r Of TH 5. AUTHORIZE PREPARATION OF PLANS AND SPECIFICATIONS. PROJECT 90-.. -~
Public Present:
Name
Address
Julius SlIith
Don Patton
7600 France Avenue So., Minneapolis
7600 Parklawn
Charles Folch: Hr. Mayor, members of the Council. From discussion at the Harch
23rd .eeting when this report was received, you directed staff to investigate
12
~lty ~ouncll Meeting - April 27. 1992
the opportunity of whether a bituminous overlay option would be economically
feasible as co_pared to the proposed total reconstruction of this portion of
CR 17 south of TH 5. Staff has gone back and reviewed some of the very lengthy
files and the project history and it becaae evident that the bituainous overlay
option was investigated during the original feasibility process back in 1990.
At that ti.e it was found that due to extensive pave.ent re.ovals that would
occur on the project for storm sewer, hand hold electrical conduit. and re.oval
for installation of curb and gutter, that overlay would only be limited to
limited areas of the roadway section. It was also looked at the existing
condition of CR 17. That was found that there were numerous, both transverse
and lateral cracking on the roadway with also SOMe portions of alligatoring
which would tend to li.it the opportunity to overlay on these portions of the
roadway also. Discussions with Carver County. they have indicated that this
road has been very susceptible to frost heaving during the spring thaw due to
poor subgrade drainage probleMs. And they also mentioned that they had done
some significant patching to this portion of the roadway during the 1991, early
su~mer of 1991. So back at that time. the previous city engineer who considered
this also. estimated that an overlay option for this project would probably last
only about 4 to 5 years. And then what would happen. due to the subgrade
problems that are currently there. yoU would still continue to have the frost
action which would then just produce cracks to the new surface. Basically
cosmetic surface overlay that would be placed. So the previous engineering
consultant determined that it was not really a feasible option fro. a long ter.
standpoint to do the bituminous overlay. And from looking at the previous
history. I would tend to agree. I've also discussed this option with Roger
Gustafson, the Carver County Engineer. He had indicated that he would not
support an overlay option as a part of this improvement project. There's an
attached letter fro a our project consultant engineer which further describes
more of the history of these aspects in detail. The staff report also contains
a revised cost esti~ate and assess.ent roll for this project. Our project
consultant engineer is available here tonight to provide answers to any
questions that might come up during the public hearing.
Hayor Chmiel: Okay. that.s fine. As I mentioned before, this is a public
hearing. Anyone wishing to approach us at this given tiMe, please come
forward. State your na.e and your address and who. if you are representing
someone.
Julius Smith: Hr. Hayor, .e.bers of the Council. Hy na.e is Julius Saith. My
office is at 7600 France Avenue in Edina. I'a here representing Instant Webb.
United Hailing. Victory Envelope and the landowners that own all of Park Two 2nd
Addition and all of Park Two which essentially is 4 pieces of property. Two on
each side of the road. It's the Instant Webb property and Victory Envelope
property. United Hailing property and a vacant lot on the corner of TH 5 and
CR 17. There are two items we'd like to refer to on this. One is physical and
one is financial involving this project. The stora water plans as proposed
allow for the filling of that pond that was there. That was always going to be
temporary until sometime that that stora sewer was put in. The pond on Lot 2,
Block 3. And the plan as proposed does in fact drain that and allow us to fill
that pond and smooth that over and it will drain that pond. Unfortunately, it
doesn't take care of the stora water for the rest of the parking lot on Instant
Webb. The west half. We'~e already paid assessments on the east half and that
project was a different stora surface water project. On the rest of the Instant
13
-.--- -.- -- "-- ~ -- -- . -~-
City Council Heeting - April 27, 1992
Webb property, putting in the stora drain or the .anholes as it currently is
designed is not low enough to drain our loading dock areas and our parking lots.
And so we did talk to this with one of the engineers froa Chanhassen who said he
would refer this to the consultant in the hope of lowering that .anhole where it
crosses CR 17 at Park Drive or Park Road, so that's low enough that we can put
in a pipe that will drain those parking lots after our pond is covered up. So
I'd certainly like to see that looked at by the consulting engineer and we'd
like to be kept posted on tha because we'd be totally unable to drain that
o erty unless that's done ~he second one has to do with the financial side
of this. e ooked at the c sts on this project and needless to say we were a
little stunned but it's ay understanding that because of the buildings that are
done in there and that we've created in there, that we qualify for an offset on
those assessments. The TIF credits are sufficient to pay those proposed
assessments and if that's the case, well it'd be pretty hard for us to object to
the proposal and it's .y understanding that we would be a.ending these project
agreements to take care of that aatter. If that's the case, we don't have an
objection to it. I aean, if it's not the case, well then we aight.
Oon Ashworth: If I aay respond. The three properties that Hr. Saith referred
to did not participate, or only ainorly in the HRA special assessment reduction
agreement recognizing the original roadway that was paid for by Carver County.
Accordingly, Todd has gone back. Relooked at the figures and has stated that
the three properties all qualify under the special assessment reduction
agree~ent if again Hr. Smith would .ake application for his clients. Sufficient
increment has been generated to payoff those assessments for each of the three
that he referred to.
Julius Smith: How how do we follow through with the engineer? Will they
contact us about? I know they're going to look at some possible.
Hayor Chmiel: Let me get that addressed. Charles?
Charles Folch: Yeah, we are currently investigating. I aade contact with our
consultant. We are investigating all the elements of that issue. Unfortunately
as of tonight we still don't have an answer to that but we are working on it.
Hayor Chmiel: In other words, we'll be getting back to you with so.e of the
answers. In the meantime, necessary paperwork that you have to do. Co.e in and
get that filled out.
Julius S~ith: Alright. What does that require now? A letter on our part or
request.
Don Ashworth: For which of the two?
Roger Knutson: Special assessment reduction.
Don Ashworth: You can simply visit with Todd.
Councilwoman Oimler: 00 you have a total on your assess.ent a.ount?
Julius Smith: I'm sorry.
14
City Council Meeting - April 27, 1992
Councilwoman Dimler: Do YOU know the total on your assessaent a.ount for your 3
or 4 parcels?
Julius Saith: Within $500.00. $590,000.00.
~ Councilwoaan Dialer: Thank you. And TIF is going to pick that up?
Mayor Chmiel: He gives some, and take so~e. Is that what you're saying Julius?
As I mentioned before, this is a public hearing. If anyone else wishing to
approach this and discuss this, this is your opportunity.
Council..n Work.an .oved, Councilwo.an Di.ler seconded to close the public
hearing. All voted in favor and the .otion carried. The public hearing MaS
closed.
.*
Don Ashworth: Todd did get an opportunity to talk to the people froa Eapak. I
think all of the abutting owners who I think with the Instant Webb, etc.\ wnl
benefit because having an urban section in there in comparison with the rural
section and that will allow for the typical street lights as they occur in the
other parts of the business park. That type of...literally get down to our park
area. The other property owner who does benefit potentially even acre so is
Empak. The dollars in here remove that hump in the roadway. If you go down by
Lake Susan, that was a surcharge area that we have very poor soils. We knew
that you were going to take that out of there. It needed to come out but for
that 2-3 year period of ti.e it needed to be there to solidify those soils. See
you only have a temporary road section in there for that first 300-400 feet.
this project takes care of that as well as again...the typical section that YOU
have elsewhere within the business park. Again I think Eapak is one of the
benefactors and they do support the project.
Councilman Workman: I was just going to ask the question, how old is the road?
Mayor Ch~iel: The existing road?
Don Ashworth: It was built in about 1976 to 1978. Right around 1978.
Mayor Chmiel: Any other discussion? Ursula.
Councilwoman Dimler: Yeah. I noticed in here that you did check with the
County and they did indicate that they would not support the overlay
alternative. I'm just wondering who has jurisdiction over this? Is the County
above the City or the City? Since the City is paying, do we have aore
jurisdiction or is the County helping to pay for some of this? Or how are we
interrelating with the County here?
Charles Folch: The County is, fr~ a financial standpoint, is not participating
in the project. However, being that this roadway is under their jurisdiction,
in order to do this project they have review and approval process of the project
plans and specifications. In addition, being that it is on their CIP progra.,
the Carver County's program, to designate CR 17 as a State Aid Road, the project
plans and specifications will also go through State Aid review.
Councilwoman Dimler: Are we likely to get some State Aid?
15
- ----- - ------ ._-- -- --------- - -.. - --- -
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THE INSTANT WEB COMPANIES
Mayor Nancy Mancino
City Council Members
Don Ashworth, City Clerk/Manager
CITY OF CHANHASSEN
690 Coulter Drive
Chanhassen, MN 55317
CiTY Uf eHAHHASSEH
ffi~~~nWmID
r.,:;::p 1 ~ ',997
",# --' v
RE: Objection to Proposed Assessment fNGlNfEROO; DEPT.
Improvement No. 93-29 (County Road No. 17 Upgrade)
ParcellD Numbers: 25-5650080
25-5650090
25-5660010
25-5650070
Madam Mayor and Gentlemen:
The undersigned affected property owner of the above-identified tax parcels hereby files
with you written objection to the following proposed assessments to be levied for
Improvement Project No. 93-29 of the City of Chanhassen, Minnesota, viz:
$160,369.12 against Parcel Number 25-5650080 (Lot 1, Block 3, Park Two)
$137,252.68 against Parcel Number 25-5650090 (Lot 2, Block 3, Park Two)
$155,383.98 against Parcel Number 25-5660010 (Lot 1, Block 1, Park Two,
Second Addition), and
$111,928.80 against Parcel Number 25-5650070 (Lot 1, Block 2, Park Two),
all in accordance with information contained in your mailed Notice of Special Assessment
for Improvement Number 93-29, (the County Road No. 17 upgrade).
The cost of the improvements assessed against each of the described parcels is far in
excess of any additional value created for each of the parcels respectively. Further, said
parcels have not been benefited, except in a very de minimis way, by said Improvement
because each of said parcels already had a relatively new, serviceable roadway and
drainage system serving them, and there were no compelling traffic overload or pressing
INSTANT WEB, INC.
Dedicated to Our Customers' Success
7951 Powers Boulevard. Chanhassen, MN 55317 . (612) 474-0961 FAX (612) 474-6467
September 18, 1997
Page Two
safety considerations requiring the modification of the rural section roadway in the plat of
said Park Two to an urban section roadway. The companies I represent certainly do not
generate enough traffic that, when added to other traffic, require it.
Additionally, I have been informed via letter from the Assistant City Manager, Mr.
Gerhardt, as well as by the City Manager and the City Council through my attorney at the
public hearing for this project on January 8, 1996, that the four parcels above-listed have
sufficient assessment credits to offset the proposed assessments as part of the HRA's
Special Assessment Reduction Program.
I write this letter as the Chairman and Chief Executive Officer of the three companies
directly affected - Instant Web, Inc., United Mailing, Inc. and Victory Envelope, Inc. - as
well as for myself and on behalf and with the permission of the other record owners who
share ownership with me of the parcels of land previously identified herein.
Sincerely,
INSTANT WEB, INC., UNITED MAILING,
INC., VICTORY ENVELOPE, INC.
By,c: ~
. Jerome Carlson
Chairman & Chief Executive Officer
ByE W~
. erome Carlson
ndowner, for himself as record
title holder and on behalf of his
Tenant in Common record title
holders of the above-described
parcels
e';'/I(/':'( 14:56
April 24, 1992
Mr. E. Jerome Carlson
Instant Web, Inc.
7951 Powers Boulevard
Chnnhassen. MN 55317
Dear Mr. Carlson:
~ 612 831 1693
J SMITH/R KORSH
P.04
CITY OF
CHIHHASSEI
690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN, MINNESOTA 55317
(612) 937-1900. FAX (612) 937.5739
Copies:
F;(ank Beddor. Jr.
vOuIes Smith (via FAX)
This letter is to confirm our conversation of Ap'!il 21, 1992, regarding the estimated
assessments for the "County Road 17 Upgrade:'~p.roject. As I mentioned to you, several
years ago both you and Mayor Tom Hamilton met with Don Ashworth to discuss what
the remaining tax increment from your projects (Instant Web, United Mailing and
Victory Envelope) could be used for in the future.\Mr. Ashworth had mentioned that
County Road 17 would need to be upgraded 'in the:future and would qualify for the
HRA's special assessment reduction prognirn. In researching the HRA files, you qualify
for approximately $675,000 worth of t~;, Jncrement '~sistance that can be used to write
do~ the prop~sed assessments that ax:r.';agai~st. all f~o/ of your properties. In order to
receive thIS assIstance, I would amend our eXIStIng prIvate redevelopment contract to
reflect the changes in the total amQ.u.rlt of special assesiments that would be the
responsibility of the HRA. t/~" ;,'.',
.1~ ~
'If;!' ;.:,',
You also indicated over the phone that you would like the .;city to move ahead with this
project, and that the .city also look at alternatives of filling 'the detention pond on your
property and increitse the 'size'of storm sewer pipes' to handle the additional discharge
that would occur Kthis pond would be'filled. I have,forwarded this information to
Charles FolchJ CitY EJ;lgineer, to review and respond to your concerns. . .
. ". .
'. J1.I....,
....,:~,.:,~ .
If you have any further questions about this project, or if I have' misst~ted any part of
the conversation, please do not hesitate to contact me.
~
,
.~cereJrt
2J~ /d-LbJ-
Todd Gerhardt
Assistant City Manager
.,.
~ ~ PRINTED ON RECYCLED PAPER
ROBERT E. BOYLE & ASSOCIATES, P.A.
ATTORNEYS AT LAW
Suite 1475
8400 Nomlandale Lake Boulevard
Minneapolis, Minnesota 55437
Tel. 612-921-2223
Fax 612-921-2225
e-mail: bobboyle@ix.netcom.com
'~:~/::~.'1 9 ..~ ~1,Qq!'
I..' ~., .~, J~
Robert E. Boyle
Direct Dial (612) 921-2258
September 25, 1997
Mr. Don Ashworth
City Clerk/Manager
City Hall
City of Chanhassen
Chanhassen, Minnesota 55317
p.. ("." - /' ;;
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VIA MESSENGER
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RE: Our Client: Empak, Inc.
Special Assessment Notice
Improvement No. 93-29
Parcel No. 25-2710010
Proposed Assessment $157,103.37
Dear Mr. Ashworth:
The above-captioned matter was sent to my attention for handling on September 11, 1997.
Empak requested that I enter an objection to the assessment at the scheduled hearing. I did not
timely file or enter an objection. Unfortunately, the notice arrived shortly after my Mother's
death and while my family and I were enroute, with her remains, to her funeral which was held
on Saturday, September 13, 1997 in St. Petersburg, Florida. In the disarray that ensued, the
notice was lost and surfaced last night (Wednesday September 24, 1997), as I was reviewing
materials on my desk. I immediately prepared this appeal and it is herewith hand delivered to
you today for consideration.
I respectfully request that you consider this excuse as reasonable cause under Minnesota Statute
section 429.081 for failure to file a timely objection and allow the submission of materials in
support of the objection. Empak was not advised that I was not going to attend the hearing and
made no appearance, thinking that I was surely in attendance. I ask that you not visit my failure
to appear and object on the taxpayer.
Materials and information to be offered are not submitted with this letter.
Mr. Don Ashworth
September 25, 1997
Page 2
Please advise my office at your determination, at your earliest convenience.
Rob rt E. Boyle, for
ROBERT E. BOYLE & ASSOCIATES, P.A.
Imm