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EDA 1994 02 24CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING FEBRUARY 24, 1994 Chairman Bohn ~ thc mce~n§ to ord~ at 7:30 p.m. MEMBERS PRESENT: Charlie Robbins, Gary Boyle, and Sim Bohn MEMBERS ABSENT: Don Chmiel and Mike Mason STAFF PRESENT: Todd Gerhardt, Asst. Executive Director, and Dave HempeL Asst. City Engineer APPROVAL OF MINUTES: Robbins moved, Boyle seconded to approve the Minutes of the Housing and Redevelopment Authority meeting datrd lanuary 13, 1994 as presented. All voted in favor and the motion can'ied. VISITOR PRESENTATIONS: Don Kallestad: I'm Don Kallestad and we live above the Pony Express Bar and I understand this meeting has something to do with the time table of our having to vacant that premises. Is that fight? Am I at the right meeting? Bohn: Well we can't do anything because you weren't on the schedule so we can't make a motion or anything if you aren't on the schedule but you can say what you want to say. Boyle: It will b~ pan of the discussion tonight. Don Kallestad: Okay. Well we've had about 10 years worth of living there and we have had a lot of complexities in our life dealing with making a move as early as this summer really difficult, to say the least and we would sure appreciate being able to stay in our place for some period longer than what I understand is under discuss/on, and I haven't really been priviledged to any information as about to the extent of a time table that's been developed or anything. It's my understanding that there's some considerations going on for a possible... I'd just like to ask that we be allowed to stay there for as long as possible and to make our plans to move inW another facility with, and be able to move all of our worldly goods...my wife's and my possessions and everything and living there l0 years, we've got plenty of accumulation so it's going to be a very difficult task. And we don't know where we're going to go or anything and I've been looking for employment and have 20 restun~ a week going out so it would really help if we could delay it for my family can be able to stay there. We've taken good care of the place and we'd appreciate anything that could be done to extend our stay there. Hous/ng and Redevelopment Authority - February 24, 1994 Boyle: Thank you. We'll take that inw consideration. Thank you Don. Don Kallestad: Appreciate your time. Bohn: Is there anyone else? Richard. Richard W'mg: Richard Wing, CJmnhassen City Council. At thc last Council meeting we were quoted in the paper as having some. Robbins: Speak up a little more Dick. It isn't on I don't think Richard Wing: At the last Council meeting, towards the end of the meeting the paper quoted us on issues having to do with lIRA and concerns with camamuni~on and some disagreement and who should be talking to who and how we should be doing what and who's driving and who's in the, I'm concerned about the mix that we've had. I think you hear a lot of comments about HRA looking at designs, Approving designs and we don't know a thing about it and then it comes to us and they don't meet our standards so I'm concerned about having common goals and common directions. I think that contract developments and money and whatever, all the things you're responsible for, you cerlainly have our support but I want to try and create more of a,..~is year so we're communicating and everybody knows what's going on. I think the HRA's an appointed board with the Council being the elected board. One's sort of creating the driving if you will and I thinlt we might be going down the same road and I'm a little bit concerned how we handle that. So we talked to Mike and some of that, and some of that is coming through to how we might be in better communications with HRA and see that are in fact conunon. Under this discusaion the pmlmrty that HRA currently owns on West ?Sth Street and Market Boulevard came up and we had heard that there's a proposal for a Wendy's and an office building. I don't propose restaurants, office buildings. I don't propose retail development. This is all fine but I think we want to make sure we do it right and what we really got into that night is land use and what are we going to do with that land. And what is the appropriate use of that land and who should be developing that land and what should go on that land. And I think it was the Council's position and subsequently without any doubt it was cerminiy the Plann/ng Commission's position at their last ~g that that land is premiere. It's the focal point of our community. It's a pivotal point in our community. And_ after the Planning Commission meeting of February 16th, I guess I left there a little bit stunned because I thought the proposal that was brought forward by, and I don't want to use the wrong words but I think Bloomherg. Audience: Lotus. Housing and Redevelopment Authority - February 24, 1994 Richard Wing: Lotus? Was, for me personally almost an insult. I thought it was very substandard. Very inappropriate architecttually. Materials. I thought the whole proposal was really disappointing. And I think Jeff Farmakes in his message, and I'm not going to take the time to quote Jeff but he really said what...all my years on CounciL I think the city deserves a lot more than we were offered. And I think we have a right to expect more and I think we have a fight for better quality. I think we're trying to...and that ~ally isn't supporting that. So other that that I went back and at the City Council meeting, and again pron~ted by the Planning Commission, wanted to know some questions on who owns what. It ~ally astonished me. Do we own the pwtzaW or don't we? What is our responsibility to the Bloombergs...? Can we buy it? Do they own it? Will they sell it? So the Findings of Facts were worked out and at 4:00 this afternoon I got this statement from the City Manager, Don Ashworth and the Attorney and basically, as I understand to the best of my ability. By the way this is one of the Council, this specific parcel of land and what we'd like to see done with it and some direction when we go to the Council and these Findings of Fact and determine exactly who owns it. To the best of my abih'ty, based on this document today, the HRA owns it. And there's several things that can happen. One thing that son of startled me a little bit here, on number 5. It says that if any proposed development of the subject property by buyer shall be subject, any proposed development of the subject pwperW by buyer shall be subject to the approval of the seller. You're the owner. You're thc seller. So in determining the appropriateness of any such development the seller shall lake into account the proposed use of the subject property. We have the right as the seller to deal with that. The seller shall take inw account the design of the pwposed development. The seller can take inW account the architecture. The seller can take into account the consuucfion of any proposed stmcmres...so on and so forth so you have a fight to say no to this, as I unders~ this. And it's my perso~ opinion that the majority of the Planning Commission, and I think I can speak for the majority of the Council, although I'm going to speak only for myself on this at this point, are not going to support what we've seen. I think anything that goes in on that comer is going to be top of the line, top quality and if this proposal before us continues, it really forces the city to mire. action to block it. Whether we buy it, cond_emn it. If yotl look at the options here, owning it. In lieu of us having to do number/$ where we could come w agreement with the developer, which cermiuly is a potential for the liRA, with Council's support, could come to an agreement with the buyer, Bloomberg for a PrOlZr proposal that we could handle. If that wasn't the case, it would be my intention, from the City Council's standpoint, to find an offer from a third party _n_nd that could well be the City of Chanhassen. As a City Council member, I would make a proposal for Council to buy it as a third party. And the other thing to do is simply condemn it and I would not hositalE to do that with what I've seen to date. So on the 28th it will be going to the City Council and this issue will be dealt with specifically. The use of that land. Hopefully at that time a recoxmmendafion, a resolution to the HRA understanding you own it. We don't. You own it. You'll be selling it and dealing with it. Not n~y the Council I think it will be going Housing and Redevelopment Authority - February 24, 1994 back to the Planning Commission. I would urge you to read their Minutes. It's the first time in history that I've ever seen them be truly decisive on an issue I felt. They were not in favor of this. When you call a proposal of this magnitude an army barracks, that's not a compliment. And that came across loud and cle~. And then of course it will be coming back to you so I think there's a lot more to be said about this land and that corner. I would urge you to move very slowly. I think once again anybody that asks for HRA suppon, TIF money, should be very cautious with it, very patient and very respectful And I would also urge that you attend the Council meeting coming up on the 28th because it's clear, it will be later on in the agenda and it's clear it will involve some HRA issues that I think you want to be informed of and knowledgable of. So I was very disappointed in this proposal I could see, as Serf Farmakes, could see nothing good in it. I'm not opposed to Wendy's being ~ but I guess fight now I think it ought to be part of an existing building, as they've done in Edina or the Subway as part of the shopping center. Another issue we have is that there was a desire to maintain some of the shopping center elements and carry them forth and I think we hit that head on. I think the Planning Cowmigsion agreed with me_ that that im't what we want to continue. That that shopping center was not popular and Jun you remember the hassles back right to last minute about what are we doing and why does it look thi~ way and put on some crazy roofs at the last minute. We don't want it glared to or connected that shopping center. This is going to be a free standing development and it's again, our focal point. The premiere comer and I have very, very high expe~tions for it and will do everything in my power to see that the city gets what I think it rightly deserves but it's going to be in your power to do so and you're certainly in the driver's seat on this one. I'd ask for a lot of caution and a lot of communication between yourselves and the Council Thank you. Bohn: Thank you. Anybody else wish to address the liRA. Nancy? Nancy Mancino: Hi, I'm Nancy Mancino from the Planning Commission. I would just like to add to what Dick said and that is that the Planning Commission, not only the architectural standards, we were very displeased also with the Raffle circulation and that is with the Wendy's and the drive up. We just didn't feel that that was adequate for the pedestrian friendliness of the development. That we felt that one of the things that the Vision 2002 wanted to keep...most of the members that attended those _meetings wanted the downtown to be pedestrian friendly and we didn't feel that this development has...pedestrian friendlinegs of it. Other than that I guess it's fled to those three things. We have not voted on...and I'm sure we will be hearing from the...thank you. Bohn: Thank you Nancy. Anyone else wish to address the HRA? Vernelle. Vernelle Clayton: There are a lot of folks here that will say something other than what I Housing and Redevelopment Authority - February 24, 1994 have to say to you. I'll limit mine to response to the conunents, some of the comments that were made as to reflecting what the Planning Commi.~on as a whole thought because I don't think they represented to you properly. I guess botwm line is, I hope you will read the Minutes because I didn't get the same i .repression as Dick did, but then he wasn't in the room all the time as the discussions were going on. For example, Jeff was very critical of the ofrice building but said in fact he really idnd of thought Wendy's had done a good job. But read the Minutes. That's how I remember it. None of us have seen the Minutes. Dick also said that the shopping center architecture was very unpopular and that roofs had been added at the last minute. I wish, he said that at the, he criticized thc architecun~ at thc Phnning Commission meeting. Even at the end. And I wish that I had pulled out the hindering that we had because we have a largc rendering that looks just like the center with one exception. On the rendering it says Super Valu and that we all know was a store that we planned to have there a couple years before it was actually built so it was not, as he suggested at the other meeting, ...it was planned all along. And for your information, as I've mentioned to others, if you're opposed to something, you hear from all the negative people that think like you. If you're for so~g, you hear from all the people that...and everyone notes that we kind of like the Market Square shopping cenm'. The whole community likes the Mazket Square shopping center. We have lots of compliments on how nice it looks. For your information, so you don't...Also the community has au ownership of the shopping center. Everyone feels committed to shop there. Several of us, not just me but some people that work in the city. People that...go out of their way to shop there when they could go somewhere else because they like it and they're proud of it and I think it would serve us all well if the leaders in the community would stop bad mouthing it. Bohn: Thank you Vernelle. Thank you. Clayton. Clayton Johnson: Clayton Johnson representing the Bloomberg Companies and I probably need to wear a couple of hats here for a few minutes if I can. One is I, Dick referred to a letter that Roger Knutson wrote and it is true. In that letter, it is very clear the HRA currently does own the property that we're talking about. However we, Bloom_l~rg Companies do have an option to purchase that property and an option runs until March 31 of 1995 and I'm here tonight to tell you that we will exercise our option, whether or not this development goes forward or not. The other thing, the thing that concerns me I guess is that you know as a group we came to this group and we came to the stuff about a year ago and said guys, we're going to start through a tnxx~ss in which we're going to spend a lot of money trying to develop this site. We have lmard all the conversation about libraries going on that site and other public uses and we said hey. If in fact the iment is to have a public use here, please save us the time and the trouble and the cost and let's discuss that at this point in time. We had every assurance that that was not the case. That this was a private development site and I guess for a minute if I could take off, if Bloomberg hadn't, and talked Housing and Redevelopment Authority - Fehrum'y 24, 1994 as one of thc shopping center, I have to tell you that it was always the intention when we platted that site, when we developed that site, that there would be retail on that comer. It is very important to the long term success of the shopping center that retail be on that comer. And the proposed uses that we're proposing are all legitimate uses in a business disuicc We don't have a problem discussing the architecture of Wendy's. We don't have a problem discussing the archil~mre of the offwe bnilding. All those are very legitimate concerns that normally would would start at the Planning Commission and move on and would all be discussed. I guess Councilman Wing, if there's anything that would concern me, after reading the newspaper article, and you'll have to correct this if I'm wrong, and this is, after reading the newspaper article, I've got the feeling that somebody was trying to change the use of this parcel. That in other words they're saying, hey we don't want this to be a commercial site. It's across from City Hall. It's across from a public pazk and so we want it to be a public facility. There again, fl~at's an issue that can be addressed but that issue i~n't addressed through the HRA and through an agreement that you have with us. That issue should be addressed through a rezoning of the property. In other wc~ls, if you want, Dick if you want something other than a cowmemial development over there, I don't have a pwblem with thac But then the issue there is that should be ~Idressed through a rezoning of the property. Not through an agreement that we may or may not have with you. So we're plowing ahead. We came, we got that direction that we were interested in a private use. We've invested a tremendous amount of time and effort and money. We're Nroceeding through the Planning Commission with our plans. Obviously, just like every other project we've built, we know there's some give and take in regard to the arc~ and what's going to be accomplished, but that's still the route that we're headed. And ff there's some other direction, we're anxious t~ hear that from the Council If the Council has decided that it's not a piece of commercial real estate and it's not something that they'd like to see hapl)en. But then I believe that there's another process that's going to have to be used to determine what happens to the property. Any other questions that you would have that I Bohn: Not at thi~ time. Anybody ehe7 Tim Manning: My name is Tim Manning. I represent Market Square. I'm going to repeat a little bit of what Clayton said and that's simply that that property was envisioned by us from day one to be a retail type of traffic generating use. Uses that are permitl~! there, this restaurant is permitted there. Thc office retail building combimition is permitted there. If Mr. Wing has some objection to that particular restaurant or style of restaurant or if it's fast food or so forth, I think he's still got to recognize it's a tmrnfitted use. I'm also taken aback a little bit by his objection to the desi~s. All of that propen3r, the existing Market Square I and these various lots are all under PUD which normally carries with it standards that are very nni¢ormed or somewhat uniform anyway. What I heard him say is that he wants Housing and Redevelopment Authority - February 24, 1994 something entirely differenCff so, that should be addressed again through planning and staff and we have not gotten that direction at all as far as we have traveled it with planning to da~. Thank you. Bohn: Thank you. Is there anybody else? Brad. Brad John~n: Brad Johnson, 7425 Frontier Trail I want to show you guys a picture. I don't know, you probably don't remember it but this is what Chanlmssen used to look like before the HRA took over and I can reme~ when I first came here because Todd had just come here. It didn't look much different than that and over the last oh 7 or 8 years, through thick and thin, Jim and Charlie at least and some of the other me~nbers of the I-IRA have plodded along and we have successfully over quite a bit of time ~ some attention to the downtown coro. merdd area. I can remember at one time, Todd and I had this discussion once when we were thinking about that all community taxes will be based upon the percentage of sales tax and we quickly cal~ that Chanhassen has the lowest sales lax of all the major communities in the area but we didn't know, there was no commercial in the whole town. We've worked pretty hard over the last few years. I think we've wodmd pmti)r cooperatively with the process of developing the downtown and I think it's to include Target as part of our program because we're the one that packaged the deal and got it down there instead of over by the Legion. You've probably put in about $25 million in development. It probably pays, if you can quickly figure that. It pays, how much does that pay? Re~ estate taxes for $25 million. Gerhardt: About 5% of that. Brad Johnson: About a million 250. I don't know what the total tax base conunewially is downtown but, so I think basically I think, what I hear a lot of is that the HRA hasn't done a good job and they're not paying attention to ~§ and I think that, I know...that we haven't done a good job but I think the basic thing is that we've all done a job and any time you do anything, you get criticiz~ and hind sight's better than fore sighL And much of the business that we're involved in in developamat is lookin§ forward as to what we can do. It took us 3 or 4 years to do Market Square. It took us 3 years to do the ap~t building. It took us a year and a half or 2 to do the first development over here in Town Square. I don't know how 1on§ it took us to do the hotel Herb smrt~ thinking about a hotel 25 years ago. So none of this gets done very quickly. We are concerned that it took 20 days to get Byerly's through. That always has concerned us and we're wondering what that really means. Bohn: They had money. Housing and Redevelopment Authority - February 24, 1994 Brad Johnson: Yeah, I don't know what it is. But it's just kind of interesting. So when we started on this project we knew that we had a tough comer ~o deal with. We have been attemp~g to bring in different tenants into that comer for the last 15 years. You know since we knew we were going to have a comer...Although many people think Chanhassen is just a wonderful place to live. Not a lot of merchants or people are really anxious to build, and not only in Chanhasseo but any big building so it's always hard to find I1 tellflnC The two primary tenants that we have today there, in the case of Bdina Realty, I've been working on for 5 years. And in the case of Wendy's, we've had oh at least 6 restaurants be proposed there. A couple we've mined down because they competed with tenants that we had, such as Frankies and such as the taco store. We had a Taco Bell that wanted to come here and we've had other people like that and we felt that something likz: a Dairy Queen or Wendy's or Burger King or something like that would be nice. I live in town. There is not really what you'd call "fast food" on this side of Highway 5 for the kids to go to and stuff like that so we always felt that was, I think in all of our plans we ~ted it that way. So we slan~ the process and if you recall about a year ago we came before you and said, well we know that you guys Call turll this dowlL ~ do you think of il; al~ of course Jim said, well we need a peak roof and we're not sure of this and somebody said I don't like Wendy's hamburgers but we made it through that meeting and somebody said well, if you just mak~ some changes to it and make it look okay, we may go along with it. Recognizing also that over the last 15 or 6 years the HRA has been criticized for not, for doing, for pre-empting a lot of the other processes. I think in all our projects, other than just to let you know what we're doing, we normally try to go through the process. So last summer we started the process and we run into some delays that have to do with other things that are going on in the city. But we have come up with a plan that seems to work. I think there was a tree ordinance that was being worked on and a new parking lot ordinance that was being wozked on and we spent the money to make sure that this particular thing matched that so it wouldn't be turned down by that. And then we got involved with the Highway 15 process which said you can't do any development because we're trying to figure out what we're supposed to be doing with Highway 5. And that's been the process. We finally made it to the Planning Commission only to find out that they hadn't sent out notice that there was supposed to be a public hearing that evening so technically we haven't been to anyplace yet with that particular program. I don't know, was anybody from the public there coz~laining other than Mr. Wing? Vemelle Clayton: No. Brad Johnson: Okay so, my kids are kind of looking forward to thc Wendy's part of it and I know the Edina Realty people are anxious to get on with their lives. So we have not even had a public hearing at the Planning Commission and I tw. lieve the process is to go through staff. If you read the staff report on this particular building, based on their input, there are no Housing and Redevelopment Authority - Febnu~ 24, 1994 variances req~ We have a number of agreements that go with this. There is a PUD agreement tha~ the city sigucd with us along with a redevelopment agrezme~t that the HRA sigucd saying tha~ we had to conform in architecture to what we did in Mar~t Square. So it was part of the package. We've already had three buildings approved over there. A dry cleaners, a vetrinarian and a bank. All of which had very similar architectme. Some had brick, some had stucco but the architccttuc would basically be the gabled roofs and stuff like that so wc didn't think that wc had a nutjor problcm...what I wanted to point out is that the project itself had sutff approval and I believe it's the maff that's supposed to be the ~ as far as tra~c plans and things liice, thaL Although there ~ a minor change that ii~ us change everyfll~g about 3 days in advance of the Planning Commission meeting. They changed thc whole direction and focus of thc Wendy's store, which Vcrnelle work~ through with the plaoning staff and we changed it and it seems to work. And as I said, we're still not yet to the Planning Commission technically. They had a discussion but couldn't vote because it wasn't a public hearing. Following that I believe it goes to the City Council. And then it comes back to you guys because then you say okay, we'll let it go or not and that's kind of, so you...position to say we'll turn it all down aft~ you've done all this stuff. So it's sort of difficult for us not to bring it to you first but as you heard the Planning Commission and City Council doesn't want that to happen. They prefer to have it go through the process so we're icind of juggling back and forth. The bottom line of it all is that I think Mr. W'mg is entirely out of order in the process that he's miring here and I don't know how to correct it because this should not be on the agenda for the 28th. It's not the correct process Mr. Wing and... lawyers have found that out. We're talking about a new zoning issue which is not, that's a public hearing. These are all Icind_s of things that the correct process from our point of view is that we go through the planning process. As I said in some cases it's taken us, in the case of Abra and Goodyear, it took us a good year to get through the Planning Commission and City Council We don't like particularly, we'd prefer to be like Byerly's and be able to do it in 20 days but the point being is that we still haven't made it through that and normally as Clayton said, we're used to give and takes. But the materials being used on the building are the materials that arc in your ordinance~ We don't require brick here in town. Never have~ As a matter of fact we just got away from metal not too long ago, if I recall correctly, and we went to the certain icind of brick on thc exterior. A little of that has to do with the economy. We are lucky here to get $10.00 and $12.00 rent for new buildings and if you have an all brick building, it requires rents in the $14.00 to $15.00 and nobody will pay that cummtly. So it's more ditTicult to do that type of thing without assistance. And secondly, this project is not requesting any assistance. As part of our PUD agreement' we don't get any. We are supposed to do this on a more public basi~ It does pay for the assessments that went in and currently the city is doing the assessments, you know holding back the assessments and they're not, hey. Nobody's paying them ~ there's no projects thus far. I would like Mr. Wing to reconsider the process that he's going through ~ I think it's out of order but that's up to Mr. Wing. We'd like to continue on our normal process where we'll go back Housing and Redevelopment Authority - Fehnmry 24, 1994 to the Planning Commission. We know we have a permitlxxl use. We know we have 3 or 4 other binding agreements that would have to be changed to change the use on that corner, and these are agreements with both the HRA and the city. So that's kind of wlmre we're at and I don't tbinir it's an a~ion point of what you have to do. I just want to point out that somehow through all of this that I.oms and Bloomberg and Amcon have been able to develop a complete downtown, which looks a lot different than this. And we've done that with a lot of give and take. And with a lot of changes and additions. I believe they took a vote at the 2002 whatever hearing that was and the two top developments that the city has so far were the Target and the Market Square. And in fact, I can mnem~r a lot of people that didn't think we should have a Target in Wwn. Yet if you read the paper you would f~nd that one neighborhood over in the east side of Wwn had a party just because th~ now had a Target. They didn't have to leave town to buy everything they wanted to do. And one of the reasons we have a grocery store Charlic is because we didn't have a grocery store, right. We've given and taken and I think we should keep that progress going. Mr. Wing is relatively new to this process. Maybe he isn't aware that there is a process in the gommnnity to go through this and it has worked okay. It's part of it and we'd like to continue that process. As I said, it is difficult for us with the tenants. They do invest a lot of money and time and it's not easy to attract still people to Chanhassen, although everybody think8 it's that way. It isn't. And that's our business so I want to thank you guys for helping us do what we did for the community. I think the HRA sho,ld be proud of themselves because everybody that comes to this community from outside this community at least thinks it's just wonderfld, so thank you. Bohn: Thank you. Anybody else wish to speak? PUBLIC HEARING CONSIDERING LAND SALE FOR REDEVELOPMENT PURPOSES~ LOT 4, BLOCK 1, WEST VILLAGE I~'.IGHTS SECOND ADDITIQN, Gerhardl= This public hearing is in regards to the sale of Lot 4, Block 1 West Village Heights Second Addition to T.F. hrues Comp. any for the development of a 90,000 sq. ft. retail facility. This sale is in acco~lance with the terms of the Private Redeveloprn~t Contract between the HRA and James Companies. At this time, staff would request the lIRA rake citizen comments. There no citizen comments were received. Motion by Bohn, seconded by Robbim to dose the public hearing. AH voted in fnvor and the motion cnrried. 10 Housing and Redevelopment Authority - February 24, 1994 Motion by Robbin% seconded by Bolm to approve the land sale of Lot 4, Block 1, West Village Heights Second Addition to T.F. James Companies in accordance with the Private Redevelopment Contract. All voted in favor and the motion carried. CONSIDER ACQUISmON OF LAND NEXT TO ~ CHANHA~Sl~.N INN FROM DON MCCARVH, LE. Gerhardt: Mr. Chairman, includ~ in your packet is consideration on the acq~~n of land next to the Chanhassen Inn from Don M~e. Mr. Ashworth was approached by Mr. McCarvillc in having the city consider acquiring some land. He feels frustrated through the process that he's had several people approach him and try to pursue an acquisition to his propa~ but has never been able to complete the purchase agreermmts. .. so he approach~ Don here approximately 3-4 weeks ago and asked if the city was interested in acquiring that pmpa'ty. I think Don's memo kind of outlines some of those frustrations that Mi'. McCarville's had in the past year. Staff is not asking for direction to enter into a purchase agreement. We're looking for direction from the lIRA if this is an acquisition that you want to take on. Is it something that you'd like to have staff sit down and have fimher conversations with Mr. McCarville and see truly how much he is willing to sell that property for. Boyle: I have two questions Todd. First of all, is the wethnd issue a new issue7 Gerhardt: It was always a question I guess. It has c~tics of a wetland. It was missed on I guess the wetland maps. The official wethnd map. But since hiring Diane Desotelle, she has gone out and reviewed, who is our water resource coordinator, who has gone out and reviewed this site and she has deemed that it having characteristics of a wetland. Boyle: Characteristics of a wetland. Geflu~t: Right Boyle: Do you know the taxes that Don's currently paying on that property7 Gerhardt: I do not. I could find that out. Boyle: Well it's not pertinent right now I don't think Todd. I would guess that if we condemn the property, anything that we're going to offer Don at this particular point, or that we could, based upon the restrictions on the land, that being a wetland, would probably not 11 Housing and Redevelopment Authority - February 24, 1994 be sufficient for what I'm sure he's looking for for the value of the property. Gerhardt: Well I mean it is a lot of record. You could possibly see some of those uses constructed on the site. Even though it is a wetland, State law says that what they would have to do to mitigate that wetland is find another area to place that wetland in. Somewhere, I don't know what the radius is. But somewhere within the community, replace that wetland that would be altered. Or eliminatecL So the site is not unbuiktable. What he feels has a value and what we see the value is somewhat different and what we would like to do in the next several months is sit down with him and try to come to te~'ms with that...would come about. I think from what Don updated me on is that he'd like to sit down with Mr. McCarville and try to come to terms with a businessman in the community and discuss it openly and honestly and try to come to a middle ground. Boyle: I would agree with that. Then have staff come back with a recommendation. Robbins: I guess just seeing the data, not from BRW that was drawn in 2 of '87. This is now '94 so this has been around a while that Mr. M_cCan~e would like to sell the land and he's stated that he's tried to sell it before and had problems. By us owning it doesn't accomplish a lot. Again we go back to that same question that I think a lot of us have raised. Are we in the landlord business or what do we want to do here7 I'm not sure that's our goal to own land for the sake of owning of land. So for us to buy it, or for the term you want to use buying it or acq~g it, whatever, I'm not sure is in the best interest. I mean ff it's a wetland, whether we own it or he owns it, to mitigate it isn't going to change. I mean the laws won't change because well that's a governmental body or a private person that owns it. So I guess to pursue this I guess I would not see this to our best interest to acquire the property. Gerhardt: The only, maybe some of the benefits of city ownership is that you do own the land next to there. Where...and with that, it's easy to control over develotnrmats that would occur on there. You also are preserving, if that is truly a wetland, you are presea'ving that wetland. You've done that in preserving other natural things within the oolnmnnity. Tho trees over on the Target site and the whole Red-E-Mix/Taco site. You know you've owned that area along there. Some of these areas, no question that the Taco Shop and Red-E-Mix site should have been Highway 5 right-of-way when they rebuilt that wad up there. There's just not enough width, depth to the pr~ to really allow an adequate building to be constructed there. I mean you're not going to find a smaller user than that Taco Shop or anything else and to try and get a parking lot and landscaping to meet the ordinances and any on site ponding...I don't know if I can answer your question or if you have any more questions. There are some public benefits of maybe owning that pwtmrty and then controlling it. 12 Housing and Redevelopment Authority - February 24, 1994 Robbins: Well back to the original statement you know about se_lli,~g it and buying it. I mcan if he's been trying for 6 years to sell it, and he hasn't sold it tells me that there's a problem selling it. I mean people sell things for a couple reasona You know they don't want it so if they want to sell it, they want to, if you can't sell it, it tells me that it just is not a buyable property. So for us to own it, whether it be for a convenicnce center or whether it be for you know whatever the stamrumts are in here, the uses. It says they would all be again~ a lot of uses. Well, if we've got a piece of land that we can't use, then why own it? True, the fact that we control it but if we contwl it for the sake of not owning it, or not using it, doesn't accomplish a lot here so I guess I would be, table this and have staff come back and just talk to Mr. McCarville this summer, mi.~ fall and let's talk about it next year. Gerhardt: You make an excellent point Charlie and that's where I think Don points out in his memo that...negotiations with the guy. I mean we feel that it's worth 17 cents a square foot. That's what typically wetlands and the low ~ are going for and he feels it's upward of $4.00 a square foot. We see this site as being diifiazlt to develop... Hempel: Maybe I can shed some light on this. Gerhardt: There's no end to that. I ~ you want it all the way down to China I thinir and it's a difficult site to develop. Robbins: I guess just in, if who's ever looking at that parcel wants to develop it, whatever the case is, if Mr. McCarville can work out his own de~ without involving the city at all, it might save a lot of time all the way around. Gerhardl: I think some of the frustrations that led up to it are some of our ordinances and engineering of the site and mings like that. It's a difficult site to develop. I think Russ has talkcd about a car lot and some of the concerns that go along with that. You know the stacking back out onto the street and mings like that...and the closeness to the highway. The aesthetics and things like that that come along with it. There's a variety of things that you could raise and I don't know. It's a frustrating piece I think for everybody to try and work Boyle: And as a result I have empathy for Mr. ~. I think that's a tough situation to be in fight now. But I think we need some options to review before we can go further Todd. Gerhardt: Oh yeah, I agree. And again, Mr. McCarvillc came to us in frustration I think and you know if staff was looking back to the HRA. If you want us to pursue other options...aud see what we can come up with. 13 Housing and Redevelopment Authority - February 24, 1994 Boyle: I'm in concurrence with Charlie. I don't ttxink it's in th~ best interest of the city to be landowners. But if that ~ is not developable, not in such a manner, because of all the resu'ietions put forth so we can develop it, then is it something the city could use for park or entrance or whatever. That would have to be one of the options discussed I'm sure. Gerhardt: Well I mean there's even limitations on the city. ff it is de,~gnate, d a wetland, then there are only ~ things you can do to it. You can't go in here and manicure it into a nice hwn so Charlie can go out and mow around the thing. And if it is truly a wetland, it has to stay a wetlancC Boyle: That's thc other thing we haven't reatlly determined if it really is wetland. Ger~dt: It has been classified as a wetland but not the entire sitr. Just a portion of it. I can't t~ll you what the square footage of it would be a wetland and what wouldn't but I could get you that. Robbins: Todd, what you might want to do, if this goes any farther in terms of if it involves the city at all, to see what we would endorse and what we wouldn't endorse. I would suspect that there's been some people that would like to put some ~ on there of a variety of different types that if they're not going to be endorsed, then it's a tough de~ But if it is within the specs and it can be developed, with a private sale, then why not do it. But it'd be nice to know what it can do. Cm'hardt: I think it could be. Robbins: Not tonight I'm just saying you know. Gerhardt: I don't know if anybody else would... Bohn: I think we should let the staff come back and let us know what, maybe negotiate with the owner. Boyle: It seems to rne between 17 cents and $4.00 is a long way to go. CONSIDER APPROVAL OF MODWICATION NO, !3 TO ~ TAX INCI~F. MlgNT FINANCING PLAN. Gerhardt: Thc liRA, Mr. Chairman, HRA members, I think it was our January or December meeting that thc HRA directed staff to modify our Tax Increanent Plan to include the construction of a pedestrian bridge and the acquisition of land necessary for that bridge to be 14 Housing and Redevelopment Authority - February 24, 1994 constructed. Those plans that you're looking at acquiring those on the south side of Highway S, east of the Legion. It sits on the Mortenson property. It's approximately I think about 23,000 square feet that you would be acquiring over there for the much down pad f~r the bridge to sit on. We met with Mortenson. We f~el that will bc...Thcy'rc very favctmble of the bridge. They'd like to see a bridge go ahead. Our things considered with this plan are the roadway upgrades for Lyman, Powera This is the joint powers agreement that we were working out with the County and City of C2mska in upgrading county roads. Again tax increment dollars to build the pedestrian bridge. Using tax increment dollars m build a parking lot and trails and landscaping around the Hanus building in conjunction with the pedestrian bridge. It's one that you may not be aware of is the Willie Klein property. The Klcins are located down off of TH 101 next to the horse barn by Lake Susan. As you go south on TH 101. Mr. Klein is in ill health. They're an older couple that live there on approximately one acre. We have plans, they're in our conguchensive plan. We have, we're going to realign TH 101 and upgrade that to 4 lanes with the construction of 212. However the Kleins are another group of people that are sitting in a ~t position. They cannot sell their property. It's fight at this...of the road and the taking of their house would occur with that rcati~~t. Not too many people are interested in buying a house knowing that we'd be coming in and building a road through it...So staff has added that as part of the redevelopment plan and that's in the range of $100,000.00 to $130,000.00. That does not lock you into, that you have to acquire it. We can bring that back as another item some other...if you want us to pursue that or not. But we felt if _things move along this summer and the Kleins were more interested in selling, we could bring it back to you and put it on an agenda. But then you don't have to go through the modification. It's a lengthy process when we go through these modifications so, this does not lock you into having to acquire 'it. It's in there as if you do want to. Then we don't have to go through basically the 60-90 day process of modi~ing the plan for this one...so we've included it as a future acqui.~tion. Robbins: I would move that we accept the memo as stat~ with the following modification. On the items where it says acquisitions, leave the ward acquisition in and put review for ~:luisition. Gerhardt: That's fine. Boyle: Charlie, is that on both 5 and 67 Robbins: That'd be on 1, $ and 6. I'm sorry 1 is approved. Boyle: One's already done. Robbins: So it'd be on 5 and 6. 15 Housing and Redevelopment Authority - Nebruary 24, 1994 Boyle: Okay, thank you. Robbins: 5 and 6 would read, review for acqnigition, review for aexluisition, erg. Gerhardt: With the last iron of change in your program is we've modified the move ahead with the county mad and joint powers agreements. We are spen_ dlng those dollars on those roads within the project area boundm'y ~nd also we've extended it up to State Highway 101 to the north. We will have to address that road issue in the nero future and you will see more information fiama stuff on that as we stsrt to work with the counties, the dries. We're trying to work out an agreement now or be with the ahu~g dries. You've got Eden Prairie. You've got Hennepin County. Carver County. Minnetonka and MnDot, the State. When Town Line Road gets completed, that will be a four lane roadway that we roper down into what is existing TH 101. The traffic that is going to come off of that highway and dump onto TH 101 is just going to be a horrendous mess and staff is worldng and planning on trying to work with these bodies to look at upgrading TH 101. It's just going to be a mess if we don't start looking at that process and...a pfi~ty. And in conjunction with that, maybe special funding, creating a special tax distri~ or something to try to fund that. You extended the project boundary, if the HR seems that they want to get involved in this, you could spend your monies in that way. Bohn: Do we have a second for the motion? Boyle: On Charlie's motion? Bohn: Yes. Boyle: I'll second that motion. Bohn: Discussion? Robbin~ moved, Boyle seconded that the HRA approve the attached resolu~on as modified on items 5 and 6 to read, "review for acquisition" and request the City Coundl to hold a public hearing on March 14, 1994 (See Attachmmt 03). AH voted in favor and the motion carried. Robbins: So then you'll modify that...? Gerhardt: Yes. Boyle: Does that include now what Todd just proposed on the TH 1017 16 Housing and Redevelopn~t Authority - February 24, 1994 Robbins: Yes. Boyle: On both legs, okay. Nancy Mancino: I just have a quick quesfion...attaclunent t~3. Todd, when you looked at this and that northern boundary is up north of Highway 5 all the way to the...is that an increase? Does that take into that land... C_muqtardt~ We cannot collect...in those areas. We cannot modify the tax in~t area you can collect increment. All this does is allow us to spend increment dollars outside there and allows us... CONSIDER CHANGING MARCH MF. ET~G DATE~ Boyle: Well we'd better wait until Charlie gets back. I guess I would prefer the March 31st one. I think we'd better. Bohn: We're changing the March date. We have to because. Boyle: Yeah, I would prffer the March 31st. That would be my recommen~fion. Get, t: Mr. C~mimmn, we could wait for Charlie on this ilrm. We're just looking for a possible rescheduling of our March meeting due to conflict with a special meeting set up by the Minnetonka School District who wants to meet with our City Coundl to discuss some of their facility planning issues that exist in Minnetonka. And both Don and Mikr felt it was important that they at~-nd that meeting. They also feel it's important to be at the lIRA meetings. They're both absent tonight. ~ had ano~ conflict tonight and Don's out of town. They want to be at the lIRA meetings and ask~ me to solicit your input if you would be in~ in changing that meeting for March. Boyle: March 31st meets better with mine but I could do either one. Bohn: That's fine with me. Robbins: So moved. Gerhardt: If I could add one more thing. The City Council also at their last Council meeting have asked that they meet with all the commission members, Planning Commission, Park and Rec, and also they'd like to meet with the liRA at the April to go through your goals and 17 Housing and Redevelopment Authority - February 24, 1994 objectives and discuss those for the coming year. So they're trying to do that at each of the commission member's first meetings in April. So our April meeting, we'll try to keep the items light and meet with just both you and City Council to discuss your goals and objectives. Bohn: Would that be a regular meeting7 Bolm: Because it seems like every time the liRA has a meeting with City Council, the City Council drives the rnee~ng. Geflmrdt: Well this one I would hope would be more of a relaxed meeting. You just sit around one table and just go through the goals and objectives. Boyle: I would have no problem with that if that's the way it went, and it's a roll up your sleeves. Okay, let's talk about it... Robbins: Would you make sure you inform former Councilman Wing of this _meeting as Gerhardt: Well the entire Council is invited. They've asked to _meet... Boyle: So that would be on April 21st then as currently scheduled7 Gerhardt: Well Jim had the calendar. Is that thc date? Bohn: April 21st is it, yeah. Do you need a motion? Gerhardt: No, you do not need a motion. CONSIDER AWARD OF BID FOR DEMOLITION OF TI~ APPLi?. VAI.LI?.Y _~I?,I)-E- Gerhardt: Well there is some good news tonight Staff opened bids for the demolition of the Apple Valley Red-E-Mix this last Tuesday and we were real pleased to see that the bids... There were 10 bidders. I think in the past we've had 4 or 5 so contmcu~ out there are hungry. The bids that were received were wide in range from $25,865.00 up to $59,000.00. The low bidder was Wickenhauser Excavating... Staff is aware of W'~user. They have bid on other projects of our's. They had not received bids before from us and were not low 18 Housing and Redevelopment Authority - February 24, 1994 bidders on any of the other projects. But they have done projects in the area and staff would recommend that thc HRA award bid to Wickenhauser Excavating for the amount of $25,865.00. Robbins: Now Todd, on page 2 where you indicated the project dates..Anflation, whatcwer. Are those quite firm or is there a penalty if the company does not perform or does this follow normal bid, where we bid these out where they have to be done by a date. Gerhardt: They have to put up earnest money of of 15% of the bid price and if they do not meet those deadlines, we can use that money to go out and hire somebody else to finish the work. So we keep 15% contingency on a project and so I feel comforl~le with them. They're anxious to get out there and I think they will meet the deadlines. They'd like to get started tomorrow. And it's a matter of getting the contracts and the... Robbins: I would move that we accept the memo as dated 2/18/94 for the demolish of Apple Valley and award it to WickcnhAn_ser Excavating. Bohn: Is there a second for that? Boyle: I'll second it. Robbins nmved, Boyle seconded to award the bid for the demolish of the Apply Valley Red-E-Mix plant to Wickenlmuser Excavating, Inc. for the amount of ~~.00. AH voted in favor and the motion carrie& CONSIDER TERMS OF LEASE AGI~g.M~.NT WITH RUSS PAULY~ PAULY'S BAR. ~t: Item 6 is one, at our last HRA meeting the HRA directed staff to meet with Mr. Pauly to discuss a possible lease extension for Pauly's Bar. Staff met with Mr. Russ Pauly and Mr. Roos on February 16th to I guess discuss what rates are in town and what would be a fair and equitable rate. I asked Mr. Roos to attend that meeting after discussing it with Russ, if he felt Mr. Roos would be a person that could you know give us fair information and Russ agreed that...could facilitate that meeting. With that in mind; Mr. Roos provided us with ranges of rents in the area from $6.00 to $10.00 and everybody associates their own rent and with that staff wanly! some special provisions that went along with it. Russ you know completely manage the building itself to take off any burden that I may have to play in that as a property manager. And with that we came up with a range of $4.?5 to $6.00 a square foot. Mr. Pauly felt that, he felt there may be more management in there than what those 19 Housing and Redevelopment Authority - Febnu~ 24, 1994 dollar amounts reflect. And in my conversation with Russ, I told him that he could come in to the liRA and explain what he felt those...Right now it's stuff recomme~lafion that the HRA come within some range of the $4.75 and $6.00 for a one year lease exten~on to Pauly's. Bohn: Why one year? Why not until we decide what we are going to do with that property? Gerhardt: The one year, it's up to the HRA how long you'd like to extmd that lease. For your information, when Russ was going through his site plan approval for the Kenny's site, the City Council kind of made a recommeodation to Russ that they would like to see a one year extension for him over on that site. That's up to you how far you want to extend that lease or how long you want to but that was the direction that the City CounciL.that back to you. Bohn: At the present time we have no plans for putting anything on that building, on that site. Gerhardt: Thc only plans that we may have right now is, as we go through the vision meetings, there has been discussions that the church plays an i .m!xn~ant role in the downtown as an historical architectural statement. And there wcrc discussions brought up at those meetings, if I understand it c~y, that they wanted to see more of a presence of that church. And that thc area out in front become of a pocket pazk green area. And then there's also future plans for a library that we've discussed there but part of the Vision 2002, we're trying to prioritize and get a feel where that group would like to see some of these things occur and that group has not flnim~ed their work yet. And until we get that priority list from them and some site locations for some of those other uses, you're correct in saying that we do not have any strong plans... Robbins: I guess with that in mind, as Brad Johnvon's indicated, things don't move real quick so you know a one year lease, I would think that would be one year would work but I would think you'd want to make it longer than that because no m~__msr_ how long it takes to get things going, and if we were not going to be doing the deal within a couple years anyway. So if you've got a 2 year minimum with a renewal option at 6 months, F m sure that would be more in line to do something. As far as the dollars, I can't comment about dollars because I'm not a person that knows values of the rental. I think that's something that can be worked out between Mr. Pauly, Mr. Roos, yourselves, whoever as far as the structure of the lease agreements. I don't think that's the liRA's perrogative to be doing lease agreements. I thlnlr we have to endorse it and that's what I'm saying, I'm endorsing it. I'd like to see a longer team on that lease for the com~ort level of us as well as comfort level of the tenant because both of us want to be able to work tog~. Housing and Redevelopment Authority - February 24, 1994 Gerhardt: Well I guess my comment to that would be, you may decide you want to build a library in Suly and the planning and everything will take approximately 6 months or so but you've lost a year and a half then. Robbins: Mr. Pauly, I can also comment to that. Mr. Pauly might also decide that he's got a new site he wants to build within 6 months and he's locked in. So it can wozk both ways. You know if the lease is one hour or one year or 10 years, it can always work both ways. That's what leases are for. Ceflucrdt: Then I would say maybe we need to go into a month to month you know and that would be flexible for each party. Boyle: I don't know, Russ. Would you like to comment7 Russ Pauly: Well...business if you're going to go on a month to month lease basis. Robbing: I've never seen business go month to month but. Russ Pauly: I mean basically in this situation, I mean you guys are pretty aware of what we've been going through. We're in an ongoing situation here. We're trying to reloca~ a business. I'll get up here and speak. Boyle: I'm sure your voice is going to project okay but. Russ Pauly: My name is Russ Pauly. I live at 1031 Carver Beach Road in Chanhassen. I've been a life long resident of Cttanhassen. Basically you know I guess we've been in an ongoing situation with the city here as far as our business. We were displaced by the downtown redevelopment and as a result of that we continue to try to relocate our bar and restaurant business. You're all familiar with the Kenny's location. We pursued that for roughly l0 months and as a result of 10 months of work and thousands of dollars of money, we were shot down by the City Courier1 when it came to trying to get our liquor license transfen~. Basically in this situation, what we're looking for is the same con~id_e~ation that other businesses have received. Say Chanhassen Lawn and Sports. You know typical business that has gone through the same process. I don't know that Bernie Hanson paid l0 cents. I don't know that he paid $3,000.00 a month. I don't know what the situation was there but the fact is that businesses that have been affecled by the downtown redevel~t and that continue to try to relocate the business, I guess I'm looking for the same consideration that those busines~s have received. And in the meantime our inl~ntion is to keep the building, the exterior and the internal parts of the business and building up to date. You know not let something just go to the point where it's falling down or anything liire that. 21 Housing and Redevelopment Authority - February 24, 1994 I mean that's not my inl~n~on. If we're going to stay in business obviously we want to continue to present something ~ the public that they're willing to come in and spend their money so. Boyle: Russ, are you still pursuing new locations? Russ Pauly: Well at _this point, aftcr the Kenny's deal, at this point there isn't anything that's readily out there, no. There i~'t anything that's come to our attention or we haven't had anybody approach us and we haven't continued any additional. Boyle: Todd, does staff know of any locations that might be suitable that would help Russ relocate hi,~ business within the city limits? Ger~ Well there is this Wendy's site...I have had conversations with Brad regarding Bloomberg Companies and are still pursuing the viability of the movie theatre. That it may be incorporated somewhere over by the bowling center. Or bohil~d the Dinner Theatre in that location. And with that I said, no. Russ is really looking for a spot to continue hi~ operation. I think Russ would be willing to work with you on looking at ii family type operation and with full liquor and so I've been trying to work with Brad in looking at options over there. I don't know if that interests Russ or not but I told Brad to contact him for if he's looking for an option for a restaurant like that they could consider... But other than that, other locations. i do not know what Charlie Sames is doing. There's been...and Applebee's and things like that kind of format that Russ is proposing at Kenny's. Kind of there are other possibilities of that maybe being part of the Bycrly's strip retail. Bohn: How about the Hlly's dance hall? Where does that stand in ownership? Brad Johnson: ...I think that's what Todd and L Gerhardtz Yeah, I nman that's what I think Brad was trying to pursue with the bowling, movie theatre, restaurant type complex in that area. Bohn: Who owns it? Geflmrdt~ Right now it's owned by Dan Mol/nc is the owner of the bowling center. Bohn: How much does he owe us? Gexhardtz I think it's getting close, I think this year he continues to pay, he's current on '93 taxes but still is delinquent on '92 and '91. So I think he's getting close to the ~ that 22 Housing and Redevelopment Authority - February 24, 1994 he's got to come up with those monies or have an auction. Bohn: How about the loan7 Gerhardt: The loan he, I think he made, is still delinquent but has made pa~ents this last year but he's still delinquent on... Robbins: I guess back to Russ. Russ, what are your thoughts regarding a one year lease, 18 months, 2 year or month to math, hour to hour. What are your thoughts on this deal'/ Russ Pauly: Well on anything that's month to month, you can't plan. Robbins: That's facetious. Russ Pauly: I nean you can't plan if it's on a month to month basis. I mean that just goes to say but I guess my thoughts are, in regards to any kind of a lease, I think I should be given some consid_e~ation based on what's happened in recent months as far as the Kenny's location is concerned and the fact that we are pum~g another location. It's not ~ we just want to sit there, and wait until the, say the last dog is hung. I mean we want to stay in Chanhassen but our options at this point now are a little limit~l. If the city is willing to extend the lease beyond possibly a year then I might be willing to discuss a little bit more as far as in the form of rent. At this point I don't feel that we should have to pay any more than any other displac~ business that was allowed to continue in their existing location until they found a new location basically. Boyle: Sounds like a compron~ing position. Todd, in reading this I'm a little confused. Is it the number, tonight we're going to vote on the'term of the lease. One year, 18 months, whatever and the rental amount? I mean what Charlie says, I'm not quite sure that we should be determining what the rate is. Gerhardt: If you want, I don't know how else we're going to come to terms and I think the real question here that Russ has is that he needs a decision fairly quickly because he needs to know if he's going to renew his liquor license. From staff's aspect, with a one year lease... you guys should still have some control over the ~ and ff you do decide that you want to do something within the year, that you have that option of doing something. Robbins: I guess back to my original statement is that I would be amiss in saying that I think a land is worth $2.00 or $4.00. I really don't know the values of the rents so I don't think that's something we can decide tonight. I think it needs to be decided bemeen Russ and the city indicating that yes, this is fair on both sides and then you come up with your lease Housing and Redevelopment Authority - February 24, 1994 pacicsgc based on whatever thc dollars are. Russ might say $2.00. You might say $4.00. $3.00 might be comparable or whatever the numbers are so I don't think we can say we dictate the rents. We don't. We endorse it. That's what I'm saying. We endorse the concept but we're not going to put dollars ar the number of dollm~ because we don't know what that number is. The other side of it is, is that secondly on the, whether we're going to approve it on the terms of the lease, we don't know who owns this anyway and I think that needs to be worked out. We're just a body that's going to be part of this deal And if we're looking at this as Roman Roos or whoever to determine the value for the city to put together a deal. In coming up with that, as long as buyer and seller are agreeable to it, then we've got a deal. It's real simple. But I would be, I'm in favor of extending the lease. Gerhardt: I have no problem sitting down with Russ and I think that both of lis can come to... I think Russ and I have a great working relatiogship and I do uuders~ that he needs to be there and I would not operate his business on a month to month. I don't think that's fair to his employees or fair W...but I guess the point I was trying to make is if you should decide that you want to put a library there or that you want to put a park there and that can~ out as part of the Vision meeting and you wanted to do it within the next year or two years, you do not have that option. If you go inW a 2 year lease with Russ, you're going to have to wait those 2 years. Bohn: I'd very surprised if we get a library there in 2 years. Robbins: Or 3 years. Bohn: It seems like it takes us forever for us to get anything done. Boyle: Well nonetheless, you don't want to go too far. Bohn: Ri~t. I think 18 months with an option- Russ Pauly: Well any lease can be renewed or renegotiated. A 2 year lease renegotiated at 18 months or 2 years renegotiated at 1 year. Boyle: I kind of lean towards the 18 months that's...and then you come back to us and kind of give us an idea of what you guys think. I have no idea if $4.75. With Charlie, $4.75, $6.00, I have no idea what's right or not. Robbins: Because Russ might decide he finds a ~ within 3 months and he's going to want us to go the other way with a lease and get out of the lease. You know if we get a library or if he gets a place to go, it's going to work both ways so I like the option. Renewable after x period. Whether it be 18 months or 2 years or whatever. So I would, do Housing and Redevelopment Authority - February 24, 1994 you want me to make a motion on that or what? Boyle: Why don't you Charlie. You've said most of it already. Robbins: I would motion on what I said. We extend a lease to Pauly's Incotpom~ for a minimum term of 18 months or beyond with the rent space, the terms of the lease to be jointly negotiated with Pauly's and the City. Bohn: And approved by the HRA. Robbins: And approved by the liRA. Boyle: And brought to the HRA for approval. Gerhardt: Yeah, we'd have to bring the lease back for formal approval. Bohn: With an option after the 18 months. Cmrhardt: I have no problem with that Audience: You should put a notice in there too because... Robbins: Speak up... Audience: Could you guys put a notice in there that you should be given 6 to 8 months notice? Robbins: That would be in the lease. At will be in there. Boyle: 18 months? Robbins: Minimum of 18 months. Boyle: I'd second the motion of 18 months. Bohn: It's been moved and seconded. Disamion. Robbins moved, Boyle seconded that the URA to extend the lease for Panly's Bar for 18 months with the terms of the lease to be negotiated between Russ Pauly and the City staff. Ali voted in favor and the motion carrie& Housing and Redevelopment Authority - Febnm~ 24, 1994 APPROVAL OF BILLS; Robbins moved, Boyle seconded to approve the ~ bills as presented.' AH voted in favor and the motion carried. Robbins: Todd, would you comment where we stand with the Byerly's deal. Is that going yet or has that really staxl~ because I know there was a rush. You know the 20 days to get it going. Now it looks lilre there's not a whole lot going on down there. Do they have their financing and is everything in place? Are tl~ going down or what's going on? Gerhardt: The last conversation I had with Charlie Jmne~ is that he was looking to move dirt at the end of February. He made the decision, typically when you put a hdc& building up, you put either a brick wall or a cinder block wall to attach the brick to it. So in winter conslruction, you have to construct one of these heated vapor barri~ so...and with that you heat the blocks so they can set up properly. Another option available to Charlie was to do that with a tilt up concrete panel and attach the brick to that. $o what they're doing right now is tilt up concrete panels are being made I think over in Savage or some place like that and those will be completed, what he had told me_ the end of Februaxy and he would stm't putting footings in end of February, early March. They said the reason they haven't smrmt grading is because the dust blanket or insulation for the site is the dirt itself. On that site you have to go down, and I flfink he's got 2 to 3 feet off the top and that will in fact be the insulation. That's why he is not grading the site. He wants to go Out there and grade it and then put footings in at the same time as he's pulling dirt so you do not have to ke~ the f:rosc..So right now everything is on schedule. I had lmzrd rumors...~t Byerly's had not signed a lease yet but I would thinlc that they're moving ahead. They came in and got their liquor license here this last week for their off sale. I have, they could still meet their time table of I think Octob~. Charlie's out of town this week. I think it did take 10 or 20 days' tOeee Robbins: But just being realistic, if Byefly's has not signed a lease, why would he start considering going through all that ground gr~rling if there's no lease signed? Gerhardt: Charlie has financing in place. He has the financiaL_to go ahead and build that building without having any tenants pre-gigned. He doe~s have the intent or an agreement with Byerly's and L..discussions regarding some dollar amounts and I'm not privy to any of that buL..as far as our agreetnents axe with him; he only gets the incren~nt if he builds something and pays taxes on it. He doesn't get anything unless he does that. The HRA's very secure in this and Charlie has told me_ that he would not...unfil the end of Fehrugry and we're getting close and he is teac4ng things down over there so it looks... 26 Housing and Redevelopment Authority - February 24, 199~ Boyle: I just have one question. There was a lot of discussion at the be~nning of tollight's meeting and I'm a little confused on one area. February 28th, is there a presentation to the tit7 C_.o~cil? Gerhardt: No. There's no presentation to the City CounciL City Council has asked the City Manager to get the City Atwrney to give a Findin§s of Fact of the agreement that you have with Bloomberg Companies and that's what's going to be presented to the City Council. Robbins: I guess when I think about what Dick Wing was saying about the mun effort and all this and that's the way... (Taping of the meeting ended at this point in thc discussion-) Boyle moved, Robbins seconded to adjourn the meetin~ All voted in favor and the motion carried. The meeting was adjourned. Submitted by Don Ashwonh Executive Director /~par~ by Nann Opheim