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1986 05 22HOUSING AND REDEVELOPMENT AUTHORITY MINUTES MAY 22, 1986 Chairman Whitehill called the meeting to order at 7:30 p.m. Present were Commissioners Horn, Bohn, Swenson and Robbins. present was Don Ashworth, City Manager. A~so APPROVAL OF MINUTES: Motion'by Robbino, seconded by Bohn to approve the m~nutes of April 17, 1986. All voted in favor and the motion carried. SPECIAL ASSESSMENT REDUCTION PROGRAMr VICTORY ENVELOPE: The Commission reviewed the enclosures submitted by City Manager, Don Ashworth. In addition, the letter of Mr. Jerome Carlson was read into the record. Generally, Ccmunissioners agreed that some form of credit should be achieved to insure that Victory Envelope was treated similar to other businesses locating within the busi- ness park. -.. Chatrm~n Whitehill moved, seconded by Robbins that~ - The City Manager research mechanisms by which the unused portion of the 7% reduction program be reserved as the maximum reduction available to Victory Envelope for anticipated future assessments; and - That the City Manager include in the feasibility study contract for the downtown area .p roposedthe public improvements bringing County Road 17 fro~' its current rural standard to an urban roadway. Ail voted in favor and the motion carried. SPECIAL ASSESSMENT REDUCTION PROGRAMr ROME DEVELOPMENT CORP: The Commission discussed 'the abnormality that exists regarding the valuation of the Enebak property within the business park, i.e. current outstanding special assessments, taxes, penalties and interest currently exceed the market value of adjoining par- cels. The Commission further discussed the desirability of placing this parcel back onto the tax roles, through anticipated construction by Rome Development, versus having development delayed by two to three years to complete the state forfeiture process. Chairman Whitehill moved, seconded by Robhins that: - The City Manager proceed with obtaining an appraisal of the Enebak parcel; and - That the Manager confirm that Mr. Enebak has offered to sell the parcel at 10% of its appraised value - such to avoid forfeiture~ and - That the City Manager authorize the attorney's office to prepare a resale agreement to Rome Development HOUSING AND REDEVELOPMENT AUTHORITY MINUTES MAY 22, 1986 PAGE 2 Corporation at an amount equal to 100% of the appraised value, conditioned upon Mr. Roos submitting a development proposal for said property including anticipated completion dates; and - That the sale ~ocument include necessary reversion and penalty clauses binding Mr. Roos to completion of the project. .. Ail voted in favor and the motion carried. LAKE SUSAN PARK ACQUISITION= The City.Manager reviewed various development potentials which may occur on Outlot B within Chanhassen Lakes Business Park (parcel lying directly north of the City's well house property). The Manager noted that at the original time of platting, Lake Drive East was. anticipated to abut the northerly edge of the well house property (the well house was constructed by the Housing and Redevelopment Authority to provide water to the business park - park shelter amenities of this structu=e paid via park monies). Soil conditions necessi- tated moving Lake Drive East to the north and thereby created a landlocked condition for the well house property. Sunnybrook's development proposal has been approved by the City Council directly to the east of the well house property.-' Ad~itionally, the Council has approved the feasibility study 'for.the construc- tion of Lake Drive East. (conditioned upon Sunnybrook's financing/submittal of letters of credit). Following action by the City Council to approve the feasibility study for Lake Drive East, both Opus and Sunnybrook approached the Housing and Redevelopment Authority asking that the special assessment reduction program be expanded to include.properties abutting Lake Drive East (from County Road 17 to Highway 101). The request would also encompass properties owned by the Martin Ward Estate. The HRA acted favorably to this request by instructing the Manager to prepare a draft.modification to the current special assessment reduction document which would include Lake Drive East (draft copy has been included in commissioner packets for discussion later"in this agenda). The Manager reviewed various potential development alternatives for Outlot.B (parcel landlocking the well house parcel from Lake Drive East), including= private development potentials, public development potentials of the entire piece, and public development potentials of less than the entire parcel. The HRA generally agreed that acquisition of Outlot B should be considered prior to final platting and prior to Opus Corporation's establishment of a value on this parcel. The HRA also agreed that any potential sale should be conditioned upon Sunnybrook's HOUSING AND REDEVELOPMENT AUTHORITY MINUTES MAY 22, 1986 PAGE 3 obtaining financing for their project, submittal of letters of credit guaranteeing road construction, entering in execution of the development contract/plat/award of bids for Lake Drive East. The Manager noted that current financial projections do not include the expenditure for Outlot B, but that those same projec- tions do not include construction of the Sunnybrook Development. Based on current facts, repayment of the costs of the acquisi- tion, assuming Sunnybrook does become a reality,-would be less than one-half of a year tax statement for Sunnybrook. Although the HRA generally favored moving ahead with the acquisi- tion, .the HRA concluded that any.final action should be withheld until after the Park and Recreation. Commission reviewed this item and determined that they would desire to see this parcel added to the City's Comprehensive Park Plan. CONSIDER FEASIBILITY STUDY PROPOSALS= Downtown Street Utilit Stormsewer: The HRA reviewed the rep~ submitted by the City ~---~r~s office noting that both proposals (BRW and RCM) were comprehensive and met city stan- dards. Additionally, either firmwould provide excellent results for the HRA. The Manager noted that, as RCM is currently under contract with two other projects, that the BRW proposal is recom- mended. Additionally, the Manager believes that ~he BRW proposal would provide a cost savings of approximately $10,000. Following discussion, Swenson moved, seconded by Whitehill that the feasibility study submitted by BRW be accepted and that the Chairman/Manager should execute this contract. The following' voted in favor= Commissioners Whitehill, Bohn, Robbins, and Swenson. Commissioner Horn voted against. Motion carried. Stormwater Management Plan - Bart Engineering= The Manager noted the overlapping nature of the proposed 'chain o~ lakes' preservation project and the HRA~s Stormwater Management Plan. Bart Engineering has been awarded the engineering contract for the. chain of lakes project. Accordingly, the proposal received from Barr Engineering for the HRA project is significantly lower than general proposals received approximately two years ago. The Manager recommends that the HRA consider accepting the feasi- bility study proposal from Bart Engineering. Swenson moved, seconded by Bohn that the Stormwater Management Plan Feasibility Study proposal from Bart Engineering be accepted. Ail voted in favor and the motion carried. APPROVAL OF BILLS= Whitehill moved, seconded by Swenson that the bills as submitted be approved. All voted in favor and the motion carried. HOUSING AND REDEVELOPMENT AUTHORITY MINUTES MAY 22, 1986 PAGE 4 SPECIAL ASSESSMENT REDUCTION PROGRAM: The.Manager noted that the draft document included in commissioner's packets, made two changes to the existing program: - A new section has been added which modifies the maximum special assessment reduction calculation. 7% of construc- tion value remains in the redraft, but a new section has been inserted allowing for a calculation of 12% of the construction value. This higher percent for determining the maximum deduction would only occur if the total special assessments against a parcel exceeded $30,000 per acre. The Manager noted that this section modification has occurred through a request from Opus Corporation wherein they noted that several lots in the northwestern portion of the existing business park have soil conditions necessi- tating major reconstruction of.utilities/streets. Without this modification, Opus would not maintain its.current com- petitive edge in marketing Chanhassen .properties. The HRA agreed that the Manager should.pursue modifying the special assessment reduction program to .allow this two tier form of reduction; and - Properties abutting the newly proposed Lake Drive East (new road lying south of the railroad tracks, between County 17 and TH 101) has been added to. the special assessment reduc- tion program per direction .of the HRA. Whitehill moved, seconded by Robbins that the draft special assessment reduction document, as prepared by the City Attorney, Roger Knutson, and dated May 8, 1986 be approved. All voted in favor and the motion carried. ADJOURNMENT: Whitehill moved, seconded by Bohn that the Housing and Redevelopment Authority adjourn at 10:40 p.m. All voted in favor and the motion carried. Prepared by: Don Ashworth City Manager