EDA 1995 07 20CHANHASSEN HOUSING AND
R~DEVELOPMENT AU'I~ORITY
REGULAR MEETING
JULY 20, 1995
Chairman Boyle called the meeting to order at 7:00 p.m.
MEMBERS PRF~ENT: Gary Boyle, Jim Bohn~ Don Chmiel, and Mike Mason
MEMBER~ ABSENT; Charlie Robbins
STAFF PRE~ENT; Todd Gerhardt, Asst. Executive Director
APPROVAL OF MINUTES: Chmiel moved, Bohn seconded to approve the Minutes of the
Housing and Redevelopment Authority meeting dated ~/une 22, 1995 as presented. All voted
in favor and the motion carried.
,REQUF~T FOR HRA ASSISTANCE IN DEVELQPING A RF_,CRF_~TION FA(~II.ITY IN
THE FRONTIER CENTER BUII.DING~ CHRIS POLSTEIL
Todd Gerhardt presented the staff report on this item and introduced Chris Polster to the
lIRA.
Chris Polster: I'm not sure exactly, have you seen the outline?
Boyle: Yes, we have it in front of us Chris.
Chris Polster: You do have it, okay.
Boyle: I assume the outline is the how much you're proposing for Chanhassen.
Chris Polster: Right. And of course what I'm in the process of doing is putting together a
business plan to I guess hopefully demonstrate tho potential for it's acceptance. My attorney
and a gentleman that I'm working with,'who is an architect is here basically to kind of listen
because they're helping me to do research and making contacts in tho right areas of design
and everything else. So they're kind of here to listen, as much as anything. Basically what
this facility is, I've been working on it probably for 5 years now. Basically trying to talk to
Vernelle and Clayton and to me that facility out there, do you know which one I'm talking
about? The Frontier Center, is good for almost nothing else as is anyway except indoor
recreation. This facility is not meant to be competitive with the gym and you would notice in
this outline for instance that our new recreation center and this are very much different as far
as what goes into them. What activities are involved with thom and that's purposeful. It isn't
an intention of mine certainly to be competitive with student recreational opportunities. In
Housing and Redevelopment Authority - July 20, 1995
fact I find them to be complimentary more than anything else. The new recreation center,
which is a god send to us but frankly it's going to not be enough already. You know we're
going to be so crowded in that, that I think a variety of the other opportunities certainly isn't
going to make I guess one or the other loss acceptable because they're both present in the
community. The main mission that I personally have in mind I guess, or my motives, if I can
make a living working with kids, that's kind of a dream come true situation for me. I spent
almost all of my volunteer time in my life working with kids, whether it be with the CAA or
previous community organizations. And it's just, I guess everybody's got a hobby and that's
kind of my hobby. Working with kids, particularly the baseball, softball types of activities.
So what I've been struggling with personally, I guess it's not...i'm not motivated by making
the city beautiful behind the Dinner Theater or anything else. I won't kid you about that but I
find it to be a useful looking facility for what we can do with that. To make this business
"successful", based on the research that I've done with other successful and unsuccessful
businesses, it has to be space that's used constantly and in order to do that, it has to have a
variety of different activities that are interchangeable, and that's what you'll see here. You
know you might look at all 12 of these things, which may not be totally what we can have in
there but, you look at the building and say how can you get 12 things in there? You know
that's not that big. 22,000 square feet isn't that big. But what this would be is
interchangeable type of activity. The equipment you can bring on the floor. You can take off
the floor. Bring different equipment on. Take different equipment off. And basically what
we're trying to do is just design a very multi-purpose type facility with .activities that aren't
commonly found in a local gym. What kinds of things do we need to do to make it
successful to attract kids. I guess the first thing I have, that I think about that every kids has
in common, what do they all like to do is eat, basically. -You know that's one thing I think
every teenage kid has in common. They like to eat. So I think to make this important, you
have to figure out a way to get food in there. Personally I don't want to have a restaurant. I
don't want to compete with other restaurants but I do want to create a social environment so
what I'd like to do for instance is talk to the other restaurants and say, I'd like to' get a menu
selection from each of you. You know put on here...if you've ever been to Davani's, you
know what it's like to go up to the counter and order some food and then 20 minutes later it
appears at the table, or at the counter. Same situation here. One of the great .things about
Chanhassen that is probably very unique, at least that I have found in the community, is a
downtown area. You know everything is in the downtown area, by this facility, about 30
seconds away. So it's not too much farther to a restaurant than it is to a kitchen. So to make
it successful, I think you have to have food and that's how I would get food. Assuming that
I'd get the restaurant owners to work with me. Preliminary interest has definitely been
appealing. I've asked for no commitments. I*e gotten no commitments because I have
nothing obviously to offer. But I've been talking about the idea~ It seems like it's not-
impractical. That's not to say that it is practical, but it's not impractical. As part of the
activities, a variety of activities. One of the things, another thing that I'd like to create is
Housing and Redevelopment Authority - July 20, 1995
something that is very unique, even in the metro area. That being wiffieball. Believe it or
not, I do have commitments from 8 teams from here to Jordan that would like to play
wiffieball in an indoor stadium all year long. The popularity, believe it or not of wiffieball is
growing around the country and I don't know if any of.you saw Sports lllustratext about a
month ago. It was actually the city of Cincinnati is amually building 4 outdoor wiffieball
stadiums, just kind of like our Lake Ann complex and they're springing up all over tho
country. To my knowledge there aren't any indoor wiffieball stadiums. One of the things we
would create is an actual replica type of situation. Obviously you can't have a replica stadium
so to speak in a small place like that, but something very traditional looking. Stadium like
looking. Something that's just going to be fun to go to and be attractive I think to a variety.
Certainly kids would like something like that. Believe it or not, these 8 teams are all adult
teams so it's, another thing I think we have to do is it's got to be more than just for the kids.
It's got to be something for a lot of people and adults, because kids aren't really going to
patronize it, at least older kids aren't going to patronize it, I don't think, at least on
weeknights because they're got their varsity games. They've got their homework. They've
got all these other competitive types of situations going on. So if we ke~p it busy on
weeknights, that is an example of one of the activities that we would use to draw a different
demographic cross section of people. An arcade, as an obvious. You know it's a low
overhead type of situation that's a revenue producer. Rock climbing wall is actually
something that was suggested by a gentleman in the community that I believe has been
working with you Don, Gary O'Neill saying, you know, I think you've got a block of kids
there. He's a scout master and he brings flocks of kids over to the Bloomington and to the
St. Paul all the time. $o I did some research into those facilities and they are in fact quite-
popular. So the beauty of that is it's all vertical space. Not...lot of space. $o again, as a
revenue producing type of activity...produce that kind of revenue. It doesn't take up a lot of
space so you {:an all this other. Short of going through everything on here, because obviously
you can read. What I think I need to have is community involvement. For one thing I still,
after 5 years, I don't believe I'm being taken too seriously by the Dinner Theater people. I
should say tho property owners. I'm not saying, tho property owners, for one reason or
another. I don't know if it's because they have different agendas maybe than I have or
whatever and that's not meant to be criticism of them. It's just from a business perspective,
we haven't been able to even come close together. I think the only way that is going to
happen is if the community does show some support for tho need. And that's really what I'm
here to ask you for. First of all support. From a financial perspective it is, I believe a TIF
district. I think there's some advantages. You're going through a big program right now with
the rest of that particular area~ I think it fits in with your dreams for that particular area, as
far as it being a family area. I think it would be complimentary to the type of businesses that
you want to put in there. So that's basically what I'm here to ask for is the same maybe kind
of consideration that you might be giving to other redevelopment projects. I'd like you to
consider it as a worthy project and then I guess I'd like to ask that you and staff work
Housing and Redevelopment Authority - July 20, 1995
together to find out what kind of things can you do. It is difficult to succeed as a youth type
of business. It's just a fact of life so. You know I'd like that to be different but it's a fact of
life. A business without help from the community just isn't going to make it... So I don't
know personally what kinds of things are legal and practical and sensible to do but as a
visitor presentation, I guess I'd like to get it on the agenda to maybe we work together to try
to figure out how we can help each other. What I would do for you is give a place for the
kids to go. I think a lot of variety of types of kids with different interests and I guess what I
would ask you to do for me is help me succeed in doing that somehow. Any questions?
Boyle: We'll go around. Thank you Chris very much. Mike, why don't we start with you.
If you have any comments.
Mason: I'm intrigued. About a million questions pop into mind. And I'm not sure Chris
quite honestly that you're necessarily the one even to answer them. I'm very intrigued about
something like this happening in Chanhassen. Lord knows we have thousands of children.
And I guess I'm not even sure where to begin.
Chris Polster: Now's a good time Mike.
Mason: You're right Chris. I mean this, you know I look at this and I go, well god yeah.
Sign him up. Lefs do it, you know. I'm curious to know where this would fit in with what
is already proposed for that area. I'm also curious to know, I know Don has been talking for
quite some time about some kind of youth center. What would happen if this got shifted over
to the Pauly's building. Now there'd need to be some expansion there, I would guess for that
to happen but, as it stands now, no. It wouldn't fit. But I thin} this is some~ing really
interesting that I think we need to take a real long serious look at.
Boyle: Okay, Don. Comments or questions.
Chmiel: No, I think les, maybe kids are always close to each other and I like to find ways of
keeping children within the city of Chanhassen busy, doing creative things rather than
destructive things. And I'm not saying that doing this but I think as they grow older, they
progress. They need a little more areas to go to. I think there could be a potential with
something like this, and of course I think from your aspect there's a lot of liabilities that you
have to really look at and what those may be. Right. And I'm looking too as to total mount
of dollars that we'd have from lIRA, even to provide to this. I'd like to see something a little
more laid out as to what it could look like, inside as well as out. Knowing that 20 foot
ceilings are not that high but a pop fly can go up many, many feet, even with wiffieballs.
But there's a lot of things there. There's a lot of things that I'd like, or they could do it like
the dome and put another cap on it. But yeah, there's a lot of things here. I'd like to know
Housing and Redevelopment Authority - July 20, 1995
more about the demographics as to the areas we're talking about. I noticed here on the
second page that you're saying that the accessibility of 9 communities by three major
highways to 20,000 kids ages 7 to 18. I think that's great but I'm look'/ng to, as a business
within the city being utilized by the kids from the city and, when you own the business you
look at all aspects and I realize that. The overhead would probably be low and if some other
things that you're even contemplating that you don't even have down here and I'm sure there
are. I'd like to even find out moro about that.
Chris Polster: So you'd actually like to review the business plan I have?
Chmiel: Yeah.
Mason: Gary?
Boyle: Yes.
Mason: Chris, I would kind of guess you're aware of what the current plans are for that area.
Chris Polster: Partly. I'm not as detailed oriented as you are regarding that but as I
understand it, the Frontier Center part is more conceptual at the moment say than the bowling
alley part is.
Mason: Have you talked? I mean what is, I'm assuming you've talked with Brad and
Vemelle. What have they had to say?
Chris Polster: Not much actually. That's why I say, I don~t believe I'm being taken too
seriously still after all this time by them, which is one of the reasons I come to you. If-you're
going to take me seriously, I think they'll take it seriously.
Boyle: Chris what type of, are they common in any amount on the lease? Is there any
dollars and cents being discussed at this stage?
Chris Polster: Well I've had quotes from years past. As Todd mentioned before...V-emelle
and she's, I guess one of the reasons I feel like they're not taking me seriously is because they
made a commitment to get me the information I needed 2 weeks ago and they're still...Again,
I don't mean to sound brash about that. Ifs a little frustrating for me but I understand their
schedule, but I think if they were taking this more seriously, they would have had the
information to me by now. It can't be that much different than it was 2 years ago, and 2
years ago what they had talked about was $2.00 a foot basically, or $48,000.00 for the whole
facility for the, just to rent part or all of it and then of course the tax burden and the...added
Housing and Redevelopment Authority - July 20, 1995
up. I guess we'd have to research that because the city is a lot involved in that part of the
equation. That's $48,000.00 as of 2 years ago, just for the rent alone for 22,000 square feet.
So I'm not sure it's the same. One of the reasons I think they don~t take it as seriously is
because they do have their own ideas for that. I know that they talked about converting for
instance that warehouse to retail space. That's one of their plans. They'll lower the ceilings
and doing everything they have to do to make this a real retail operation. And I certainly
don't discount the value of doing that. I guess I'd just like, before you do that, even from a
business perspective for them, it might cost them less to get into this business and they can
still be as profitable. I know it wouldn't be $14.00 a square foot but you don't take revenue,
you don't take profit to the bank and that's I think what they need to look at before they make
any decisions.
Boyle: Jim, how about you? Do you have some comments or questions?
Bohn: No. Just it'd be nice to have something for the kids other than just a meeting place.
Boyle: Well I sure agree with all the comments and I think everybody here agrees that this
would be something, the concept is great. The concern sometime comes on a social issue
such as this. It's easy for HRA to when it comes to a decision, you know when businesses
come it's a little bit different but when there's such a serial issue involved here, it's a little bit
more difficult. I think we would have to tell the staff to look at the legality of whether we
could do it. Also the economic part of it, once we get the dollars and cents involved. I have
some concern that, we've already made a pretty heavy commitment to the overall project
down there. I mean like 17 years I believe of half taxes to develop that property. So there's
already a pretty heavy commitment on the part of the HRA for that area which we would
have to consider also at the time.
Chris Polster: Is that businesses that already include plans for the Frontier Center? Is that
part of that overall commitment?
Boyle: It would in total, yes. As far as the numbers.
Chris Polster: But I mean as far as the money that yoffve committed so far for
redevelopment, Frontier Center part of what you have already committed to plans?
Chmiel: Yeah.
Boyle: Yes.
Housing and Redevelopment Authority - July 20, 1995
Chris Polster: So in a sense, to clarify in my own mind. If the HRA and Clayton and
everybody said okay, let's go for it. Would it be a matter of adding more money to that
budget or would it be a matter of redirecting?
Boyle: I don't think so Chris. I think that would really be between the proposed renter and
the Lotus. That's how I feel Todd. Correct me if that's not right.
Gerhardt: When we did the acmals, we anticipated the mount of square footage in that
building and the tenant in that building would pay anywhere from roughly $2.00 a square foot
in taxes, just the taxes on the building. You know up level, averaged out, to $3.00 a square
foot. The concept that Vemelle was using, she would take that front glass portion and turn
that into kind of a retail element and then the middle of the building would be some type of
another use and of course the back section, as Chris knows, has already been committed to
the Maytag and the Recreational guys for storage back there. So a portion of the building
will long term be committed for storage space. But when we did our analysis in that area, the
plans called for a new facade on the building where tho glass front is. That that would have
a new facade, with the boardwalk area in front of it and then a new parking lot that would
service that facility. So enough parking that would service up to 25,000 square feet of space
in there. And then there's also plans for a boardwalk area that everybody is sharing the cost
in between what is the Frontier Building and the old Instant Webb/Animal Fair area. To
make that more of a pleasant pedestrian type walkway. It was decided at the Planning
Commission if that was ever developed, that they did not want a traffic lane between the front
of the building and the back of the building. So that would become a pedestrian walkway,
landscaping, brick pavers and benches. Make it more of a pleasant walk area than an alley.
So right to date, with that parking lot and facade, the HRA has agreed to commit
approximately a half million dollars in redevelopment for that area based on increment flow
over a 17 year period from that facility. Whoever moves into that facility and to the HRA,
when he gets obligations, somebody is going to have to pay at least $2.00 a square foot in
taxes. Up and above $2.00 a square foot, you're going to have to have whatever Clayton
wants. Your portion of...insurance and whatever he needs to help offset any tenant payments
that needs to be made in the building, which Chris and I already know there's some water
problems and other things that need to bo addressed.
Boyle: So, if I heard you right Todd, I mean we're looking at taxes alone at $48,000.00 and
then whatever the rent would be, would be on top of that or maybe $9,600.00 even.
Chris Polster: And that's my problem.
Boyle: That's a big one. That's a big one.
Housing and Redevelopment Authority - July 20, 1995
Chris Polster: A lot of being successful will be to look, you know and a lot of that is what
the I-IRA is already doing with that area. Is what it's going to look like from the outside. Ifs
got to be first, before anything else, it's got to be something that parents will say, I would
send my kid there. Right now they don't.
Boyle: You know I hope that the comments were not discouraging, because that was not the
intent. The comments was, I think it's a, anytime that you can improve your community with
something that's going to give kids and adults recreation or other things to do that are good,
it's always a positive to the community and to everybody else. However, I do think at this
point it's probably best that there, well the next step would probably be some type of an
agreement, closer agreement between you and Lotus Realty, as I see it at this point. I don't
know, Mike, Don? Before we can get further involved.
Mason: Does that, I'm trying to get a couple things straight in my mind here, because I'll be
honest with you, I'm taken by this. Does, with what you said Gary then, does that, that's
saying then that Lotus Realty is calling the shots.
Chmiel: It's their property.
Boyle: It's their property. We have committed to assist in developing that property, which
they are now managing, as I understand, so ifs really kind of them.
Gerhardt: They're probably the leasing agent. It's owned by Bloomberg Companies.
Chris Polster: Basically my intent in coming to you first, even though it doesn't make any
sense for Lotus to even spend time on this if it's something the HRA...doesn't fit our
conception of what should go back there. So Lotus, if you want to do it, you're on your own
where right now they're expecting financial support: The main thing I guess that I would be
able to take back to Lotus is, they're not against it, okay. And it doesn't change their
financial plans for that particular redevelopment area and that's a big issue I _think.
Boyle: Conceptually we definitely, I don't think anybody here had an objection to...
Mason: You know Chris, I think you know my commitment to social concerns, being in
education but whether this goes, whether this flies here or not, I would love to see what the
next step is.
Chris Polster: Right. Well if that's a detailed business plan you're interested in, I would be
more than happy to supply that and I've got that completed so.
Housing and Redevelopment Authority - July 20, 1995
Mason: What I'm hearing here is that you need to get in closer contact with Lotus.
Chris Polster: Well I need to be taken seriously. I need for them to take the time to make it
close and again, I'm sorry if I'm coming across as being critical. I don't mean it to be but
they need to do that for mo in order for me to even do a business plan.
Mason: And it needs to be realistic from their standpoint too.
Chris Polster: So what I'd like to have is a letter of intent saying we can work on, as a basis.
A contingency that if it goes, this is what the costs are. If it doesn't go, then we ought to
forget about it, and isn't that what you call a letter of intent. And it's just basically something
to work with and in their expense, they are very busy and ifs not they're against doing this
because actually Vernelle has been very supportive and I don~ know if Clayton is or isn't, but
I know Vemelle has been very supportive of the idea over the years. We just haven't been
able to get together from a practical perspective as a lessee and lessor, shall we say, in order
to make this business fly. And then the other, I guess the other reason I'm in here first of all,
do you support the idea. And then the second thing is to get I guess your support for the use
of staff to investigate other opportunities to help the business succeed. I don~t even know
what that means, or what ideas that might encompass. Thafs why Pve asked for Todd's time.
Well what other things, for instance do you have authority and I probably will someday be
coming to the City Council as well as ideas come up and find out how can the City Council
help or how can the tax base help somehow. I'm going to the business community, the
Chamber of Commerce and I'm not going to be asking anybody...it's a value for value type of
situation. But working with kids, business has got to be creative. There's no doubt we've got
to be creative.
Boyle: You're absolutely correct. And it is risky too.
Chris Polster: And it is risky, and as a business person I'm willing to accept that. I mean
that's just something you do.
Boyle: Well Chris, I'm not quite sure which direction. I guess the direction that you could
leave tonight with is, number one, try to come to some type of agreement or intent from
Lotus and Bloomberg Companies. Todd, we should...
(There was a tape change at this point in the discussion.)
Housing and Redevelopment Authority - July 20, 1995
PRESENTATION REGARDING RELOCATION OF THE Ol.l~ RAILROAD DEPOT~
CENTENNIAL COMMIT'FEE.
Joe Scott: ...if that's not the case, we still think it's an exciting product and we'd have to miss
the Christmas season, we still have the Centennial season. It [rind of reminds me of one of
my previous lives on a commission where we had people corning and saying, well I bought
steel and it's coming next week and I need my sign tomorrow. That's not the situation we're
going to try to put anybody in...so anyway, I'd like to thank you very much for your time and
we will have two alternatives together for you to take a look at at your next meeting. We
will be in contact with you in the meantime so you know what we're doing and get some
direction from you and we'll go from there. Thank you very much.
Boyle: Thank you Joe.
Gerhardt: If I could add a couple of things to that. You are aware that you are in ownership
of that building and Mx. Luce has not made any phone calls to me to say hey, get your
building off my property...because he does have the property up for sale and that section of
town is developing. There is sewer and water available to the site so we may be forced to
find at least a temporary home for that facility in the near future.
Boyle: When you say near future Todd, 3 months? 6 months? What would you guess?
Gerhardt: I would say at the earliest one year.
Boyle: During the next year.
Gerhardt: Probably not 3 months.
Mason: Is this the kind of thing that at some point we'd see if we could get money from the
Historical Society. Minnesota Historical Society or something. I mean looltng for grant
money or you know, land preservation or building preservation. I mean I know they have
trusts and funds and this kind of thing for that purpose. That might be something down the
road that we want to take a look at.
Boyle: Who would do that?. Would it be more advisable for the Centennial Committee to
approach the State on something like that or for the City to?
Mason: Well I don't know.
Boyle: I don't know either.
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Housing and Redevelopment Authority - July 20, 1995
Gerhardt: I'm sure we can get funds for old St. Hubert's and historical, this is the State
Historical...and that's about it...in a grant is so competitive, I mean the block party, what the
Basilica people did, to renovate their facility. I think the option passing back to you is that
you've got a lot of banks here in the community that need to contribute money back into the
community. I have been approached by Century Bank wanting to make a statement right
away and having a park that they can say that they developed or you know have a piece of
recreational equipment or something of that sort.
Mason: We'll take it.
Gerhardt: I don't think Joe highlighted it in his conversation but what they're going to try to
do is raise enough money to renovate this facility and pay for it. What the neighborhood and
the HRA could do is come back with concepts of, do you want it in that location and that's
where we think it should go. You can come up with working drawings...in that location.
You know we'll raise the money to get it done. At least that's the impression that I got when
I had lunch with them at noon today and...He might be one sided in his picture and trying to
sell that. I don't know if that can be done within the short term. I think that that group is
well organized in trying to find a fund raiser where people will donate. If they see a picture
somewhere that they can put money into.
Boyle: Oh I have no doubt that between banks, service clubs, individuals and tho plan that
the Centennial Committee has going, they're going to raise plenty of money.
Mason: They're going to raise a hunk.
Boyle: They'll do very well on that. I'm not really concerned about the funds I guess as
much as, is that what we, you know what do we want to do with that property? That's what
we've got to decide. We've got to do a little soul searching here.
Mason: Good point Gary.
Gerhardt: And knowing that there's citizenry out there that's opposed to that building being
brought back to downtown and being renovated, you know, that kind of bothers me a little bit
but I don't know who you talk to or what.
Chmiel: My Legion crew that I go and see twice a month. They told me about it
Mason: Well there are a lot of other people in town too.
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Housing and Redevelopment Authority - July 20, 1995
Gerhardt: That group being one of the people...donations for it and they're probably one of
the healthiest service groups in town here.
Mason: Yes they are.
Chmiel: No, I'm not saying that is a dead issue but there are a lot of dollars that can be done
and maybe too, they want to have a block party like they did have at the Basilica to raise
additional dollars to put on some kind of a thing. It's a little late probably this year, but even
next year during the Centennial, it could still be done. To offset some of those costs at that
particular time too. But I think you're fight Gary, with the service clubs that we have within
the community fight now.
Boyle: Well you get that thing moved, with that alone.
Mason: Yeah.
Bohn: It's going to have to be moved eventually anyway.
Boyle: Yeah. Well right now there's really, and I don't want to belabor it tonight and really
we need to kind of think about it but it's keep Pauly's there and use it as a teen center or
develop a park. I mean those are the two alternatives that we're currently looldng at, fight?
Chmiel: Yep.
Boyle: Revenue producing property there has never been one of the considerations or the
intent, as I've heard. Never has been, fight?.
Bohn: Never has been. Because they originally thought of a library there, which would not
produce any revenue for us.
Boyle:
Bohn:
Right. And that is a dead issue now regarding library in that property.
We've never thought of anything other that, have we?
Gerhardt: Well just, if you are going to locate it on, I just don~t think the Klingelhutz farm is
an option. I just don't think there's the money for that type of acquisition. And you might
have enough money to, and I don't know how much you've got available fight now but.
Boyle: We don't either.
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Housing and Redevelopment Authority - July 20, 1995
Gerhardt: But I don't think we have the dollars that would pay to take the...building down.
And you own this piece of property. You do have property over by the bus depot area. You
have property along Highway 5. You do own the pond area. You own the right-of-way
along West 79th Street. And my comments in my memo were one, youhte got the Old
Village Hall and you've got Old St. Hubert's and I think Joe's comments, you might as well
add old railroad depot there too, is where he was coming from. Of course that doesn't say
that we have to do it. You may come in and say you want to redevelop the property and put
it back on the tax rolls, options are office. Options are dayeare facility. You could put it
back on the tax rolls. You've got a parking lot there. It's a very amenable piece. It's not a
high traffic area. We'd have to find room to...
Boyle: You know if we did put that on and we continue to own the property, then we also
have to continue to pay for the upkeep of that property and the structures on that property.
Am I correct in that assumption?
Gerhardt: Yes.
Bohn: We have to pay for the parking lot anyway. It's our parking lot.
Gerhardt: Well we do spread the cost of the parking lot, plowing, the striping back to the
benefitting properties. The church pays, Klingelhu~..pays and Pauly's pays right now. You
tore down two other people that did pay and it's roughly to plow that site, it's about $1,200.00
a year to keep the parking lot open and stripe it, you're talking probably another $200.00.
But you know, those other two individuals are going to pick up more of the brunt now that
you've got two other people that aren't there. It's all based on a percentage of users.
Bohn: Pauly's will only be there until this fall.
Gerhardt: And as to the maintenance of the building, you know Don's correct that we did
have a lady that wanted to open a book store in the place but you're better off building a
brand new facility someplace else...than try to renovate this facility. And so...into the scene
shop where we put mannequins inside and...
Chmiel: In fact we have a painting upstairs at City Hall that depicts that. That I got from,
geez I can't remember the gaps name. It's hanging on one of the columns up there.
Gerhardt: And it's the maintenance when we obtain it...
Boyle: Do you think the taxpaying community would be receptive of that use? Or that land,
in your opinion. That's a tough question. What do we know.
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Housing and Redevelopment Authority - July 20, 1995
Gerhardt: Not everybody. I mean.
Chmiel: You can't make everybody happy.
Bohn: I wouldn't answer that question if I were you Todd.
Boyle: How do you know.
Chmiel: I hear what you're saying Gary though, but.
Boyle: Okay, let's give it all some very serious thought and kind of jot down some ideas and
maybe between now and the next meeting. If ifs okay with everybody else, we'll move on to
old business.
UPDATE ON WEST 79TH STREET LAND SALF~
Gerhardt: The on again, off again. When you're dealing with people like Applebee's, you
know they're so used to cookie cutter...plan 1 I-B. That's the way it's got to be. You know,
there's no way around it.
Mason: You know, if they want to be in Chanhassen.
Gerhardt: They can't understand it...all four sites.
Boyle: Well we would have no problem with that obviously Todd if the land would
accommodate that but it doesn't.
Gerhardt: It's a difficult site.
Mason: Yeah, yeah. And I mean we went through this with Target. We've gone through
this with far bigger players than Applebee's. I mean do they want to be in Chanhassen or
not. I guess thafs kind of the bottom line as far as, I mean we're fortunate I think to be in
the position that we don't have to be.
Gerhardt: I think my parking lot is more convenient than their scenario.
Mason: I basically agree with you as a matter of fact.
Gerhardt: And the realtor couldn't even argue. She said, you're right.
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Housing and Redevelopment Authority - July 20, 1995
Chmiel: If they want parking on both sides, why don't they just move Applebee's up to
where the parking area is. It shows 54,600 square feet. Put them in there and then they'll
have parking in back and in front.
Gerhardt: Well the other down side is that they're only willing to pay for 54,600 square feet.
Chmiel: I know.
Gerhardt: And I said sure. We can move the parking farther north but I said you'll have to
buy more land and that was one of their other big issues over the last 3 months that I've been
negotiating with them is that they can't afford to pay more than a half million dollars for the
property. And I said if you push that property any further north, you're buying the whole
thing from me because you're giving me a piece of land I can't develop, that nobody will go
on. So you're taking a total taking of Tires Plus. Now I don't care if Tires Plus is there or
not, but if you want that thing pushed farther north, you're taking the entire 30,000. And he
says, you know he didn't have an argument for that. It's just a difficult site. It's not square.
It loops down. You do have setbacks and by twisting the building and putting the front door,
they didn't like it where the building's rear end was sticking towards West 79th Street. Over
here. They didn't want people coming in being greeted by the rear of the building.
Mason: Well so they can change their design a little bit. I mean.
Gerhardt: So anyway, on all the building around here, I said back to them there. It's not that
difficult.
Mason: Yeah. I personally think this is much ado about nothing as far as I'm concerned. I
mean do they want to be in Chanhassen or not.
Gerhardt: That was the other thing after I got done I started thinking. I said well, they've got
another site in mind. Maybe they want to be over at Legion. They want to be on Dell. Are
they working on another one in Eden Prairie. Am I being used in this whole thing? I've
been updating the HRA for 3 months. I'm starting to get egg on my face here. They're going
to say Todd, is this a fantasy of your's or what and I told that to the realtor that I think we're
both being used in this and she matter of factly stuck her face in his face and said, what's
going on here. Are you coming into Chanhassen or not? They're not going to, they're pulling
everything off the table that if you don't make some decisions here. They came out
yesterday, looked at the site and made the commitment that they wanted to be in Chanhassen
and that this is their number one site and they are not looking at the Legion. They are not
looking at Dell Road and they are staying in their current facility in Eden Prairie. And so
they've told me that they will be sending an architect over to work with me on finalizing
15
Housing and Redevelopment Authority - July 20, 1995
these plans but that they have agreed to the terms of the purchase agreement and basically the
layout of' this site. And as the way that we've got it designed.
Boyle: I think you're there Todd. Thank you.
Mason: Sounds like a good update to me.
APPROVAL OF BILLS.
Boyle: I guess we'd better approve payment of the bills. Do I have a motion first? I would
like to make a motion that we approve the bills as stated.
Mason: Second.
Boyle: Are there questions or comments? Jim?
Bohn: No. Yeah, I guess I have one question. The tax that you're saying, that we paid back
to Heritage Park Apartments. How many years do we pay that?
Gerhardt: That goes out to about the year 2001 and ifs, if they receive their taxes back, it's a
loan and then we need to go...2001 or 2002 or something, that they've paid for all the taxes
that have been paid to them. So 2001-2002, you're going to get a check for $800,000.00.
Bohn: What if 2001, we're not going to do it? They just file bankruptcy. Do we get the
building?
Gerhardt: Well, I don't think.
Bohn: It's a lot of money.
Gerhardt: ...I think it's a limited partnership. File a lien against the building, you know.
There's a variety of mechanisms that we can go back and try to retrieve that money.
Bohn: Over that many years, that's a lot of money.
Chmiel: Yeah. That's the way that particular thing was done at the time but I think that
legally the city has some ramifications of acquiring those dollars back, whether it be taking
the building or whatever. I don't think they're going to walk away from it because that
building is worth how much now.
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Housing and Redevelopment Authority - July 20, 1995
Bohn: How much is the senior housing going to cost us?
Gerhardt: Senior housing, I think it's like, wasn't it about $65,000.00 a unit. If I'm
remembering, times whatever you come down to.
Chmiel: 68 units.
Gerhardt: 68 units.
Chmiel: I thought it was 4.8. Somewhere in that neighborhood.
Bohn: Then Heritage Park Apartments, those apartments are bigger than the s~or housing
apartments. Much bigger.
Boyle: Do they keep it up pretty good?
Bohn: So far they have. Although they said two years ago they were going to paint it, and
two years have gone by and they still haven't painted it.
Chmiel: It doesn't look bad though.
Bohn: No it doesn't because it's rough sawn cedar and it doesn't show but they have been, in
fact...and Tailey have been over there all week going through the buildings with clipboards
and the care people, maintenance people telling them what has to be done. They just re-did
the lobby.
Gerhardt: Somebody's grappling with the fact that maybe we should have bought that
building and turned that into senior housing. It doesn't provide, it doesn't have the same
options that the other senior housing has. We don't have very many two bedrooms in a senior
housing complex. It's one bedroom, dens. This one's got two two bedroom units in it and
you don't have any emergency cord. It's not handicapped accessible...
Bohn: Two years ago the elevator was out for almost two weeks and we had two older
people that had to leave there and go someplace else until the elevator was fixed. They
couldn't get the parts. That's one of the major items. But the company that handled the
contract bid would bring the parts in. It was 10 days without an elevator.
Boyle: Any other questions on the bills?
17
Housing and Redevelopment Authority - July 20, 1995
Boyle moved, Mason seconded to approve the Accounts Payable for the HRA ns presente&
Ail voted in favor and the motion ca~ied.
Boyle: One other quick thing. On the third Thursday of August, the 17th of August. I get
back in town that night but not in time to get a meeting in so, just kind of to let you know if
somebody else wants to nm it or the options are the 10th or the 24th.
Mason: The 10th I will be out of town.
Chmiel: 17th? I don't even have it down.
Boyle: Or do we have the 24th.
Chmiel: 24th.
Boyle: Oh is it the 24th? I had the 17th.
Chmiel: Yeah. I've got it down for the 24th.
Boyle: Well then, disregard that.
Gerhardt: I thought it was the 14th but I just counted the third Thursday so.
Boyle: That's what I was doing. The third Thursday.
Mason: Well the 14th is the Council meeting, which I'm not going to be at. So then it
would be, oh yeah because the 14th and 28th and Council meetings. So it would be the 24th.
First on a Tuesday got us again.
Gerhardt: We do have an extra week here, you're right.
Mason moved, Bohn seconded to adjourn the meeting. Ali voted in favor and the motion
c~ied. The meeting was adjourned.
Submitted by Todd Gerhardt
Assistant Executive Director
Prepared by Nann Opheim
18