EDA 1995 02 16COPY
AGENDA
HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, FEBRUARY 16, 1995, 7:30 P.M.
CHANHASSEN CITY HALL, 690 COULTER DRIVE
.CALL TO ORDER
APPg0VAL Og rvn W0T
1. Approval of January 19, 1995 minutes.
VISITOR PRESENTATION
Anyone wishing to address the HRA may do so at this time.
NEW BUSINESS
2. Consider Awarding Bids for the Demolition of the Przymu~ony Express Building.
3. Update on TIF Legislature.
OLD BUSINESS
4. lustification for the HRA Assisting with the Purchase of City Hall Copier.
5. Approval of bills.
HRA PRF~ENTATION
ADJOURNMENT
CHANHASSEN HOUSING AND
REDEVEIX)PMENT AUTHORrrY
REGUIAR MEETING
JANUARY 19, 1995
Chairman Boyle called the meeting to order at 7:30 p.m.
MEMBERS PRI~-qENT: Don Chmiel, Charlie Robbins, and Gary Boyle.
Mason arrived to the meeting late.
STAFF PRESENT~ Todd Gerhardt, Asst Executive Director
Jim Bohn and Mike
APPROVAL OF MINUTES: Chmiel moved, Robbins seconded to approve the Minutes of
the Housing and Redevelopment Authority meeting as presented. All voted in favor and the
motion carried.
VISITOR PRI~-qENTATIONS: None.
1995 GOALS AND 1994 ACCOMPLISHMENt.
Boyle: Todd, I don't know if we really need to go over piece by piece, unless these
gentlemen would like to. Why don't we do it on an exception basis. If there's any questions
or comment on any of these, we could do so at this time. Well there's Jim. Had us worried
there Jim. I have one question Todd. On paragraph 4, Market Square development, and I
should know this but Lots 2 and 3 are where?
Gerhardt: They're directly north of Subway. They're very small lots and Brad is working
with a couple of clients right now. A good example would be like a...would go in there.
Boyle: Oh just small stuff.
Gerhardt: Yeah. The biggest issue that they're having to deal with right now is parking over
there. So they're trying to, one of the lots may become the parking lot for the other lot. So
he's coming up with some concepts. Trying to get numbers to work and things like that so I
would expect probably something within the next two months back to you.
Bohn: I just talked to my brother in law who's got...and I asked him about that lot being
developed and he said, we don~ have enough parking over here. They're going to have to
make more parking to put anything in there. But whore are they going to got the parking
from. One of those lots doesn't quite, Wendy's opened up and.
Gerhardt: Wendy's is kind of doing the old shuffle of pushing the employees over in front of
the hardware and pushing them over into Festival. So they got that all squared out now and
Housing and Redevelopment Authority - Sanuary 19, 1995
they're parking back on site. They just wanted to get their building as visible at the
beginning of their opening as possible so people you know would have parking, and trying to
deal with extra customer service...
Robbins: I guess Mr. Chairman, based on the way it's stated, it says update. Attached is the
update on '94. It says review. Prepare to discuss. Are we looking for a motion or just to say
yes, we've reviewed them and we refer to the Council?
Boyle: I don't read a motion is needed anywhere in here.
Gerhardt: No. Just...you might want to make known individually. Did I miss anything7
Any modification that you would want to see. And just to keep you informed of where we
are with some of the '94 accomplishments and how we're moving into '95 and if you want to
direct staff to go ahead and present these to City Council...
Robbins: So at this point then we're not looking for a motion. We're just, this is more of just
to tell us what's going on7
Bohn: This isn't cut and...?
Gerhardt: No.
Bohn: We can change.
Robbins: I guess what I would defer to...for his action.
Boyle: Is there any questions of anybody. Jim, when we opened the meeting, we have
already approved the Minutes. Did you have any questions on those?
Bohn: No.
Boyle: Okay, then we moved to this. Rather than going through each one of the 10
paragraphs or each one of the 10 goals and review one at a time, we thought we'd do it on an
exception basis. If anybody had any questions that they would like to discuss.
Bohn: The only question I had is, can we change anything7
Boyle: And that answer is affirmative. Paragraph 9. Demolition of Pony/Pauly/Pryzrnus
building. Leases for these facilities end as of June 1, 1994. Should Pauly be included in
that?
Housing and Redevelopment Authority - Sanuary 19, 199:5
Gerhardt: The Pauly's lease ends, I didn't update that par~ Their leases for the Pony and
Pryzmus building really ended in October of '94 and Mr. Pauly's lease runs out in November
of 1995. That should be modified.
Bohn: Yeah, we gave Pony and Pryzmus 6 months. Actually their lease ended in.
Gerhardt: '94. October 1.
Bohn: Didn't it end in Suly?
Chmiel: We gave them a 6 month condition.
Gerhardt: And they got out before that. I don~ think I collected, I think you're right. I didn't
collect rent after July but getting them out and the facilitation and relocation, they physically
weren't out until October. But you're fight, the rent that we received ended in July.
Boyle: Okay, I had no further questions. Don, did you have anything?
Chmiel: No, I have something regarding the landscaping at the Hanus facility but weql get to
that as we go through here yet.
Bohn: Are we going to demolish the Pryzmus and the Pauly and Pony building...wait for the
Pauly's building?
Gerhardt: No. I handed out a letter regarding that from BRW and on the second page there's
a time table of the schedule for that demolition. The physical stru~es will start coming
down March I and the footings would come out probably sometime after road restrictions
because of frost.
Chmiel: Yeah, and regarding Pauly's place. That I had brought up to be used as a youth
center for a period of time until once we get ready to clear that out as well and we're going to
review that. Give the kids a place to go.
Boyle: I guess at this point then we would direct staff to present this to City Council with
options for changes.
Bohn: I have one question. This was done by BRW?
Gerhardt: Yep.
Housing and Redevelopment Authority - January 19, 1995
Bohn: I thought we were all done with BRW.
Gerhardt: We've continued to use BRW for demolition because of the history that they have
with the water hook-ups. When you demo a building, you go back and disconnect the water
hook-up. They've also got the footprints of all the buildings on their computer system.
Bohn: Don't we own that information? I thought we bought it from BRW. We don't? Why
are we going back to BRW?
Gerhardt: They just have the information. I don't think anybody can do it as cost efficiently
as they can.
Bohn: In other words we don't have the information?
Gerhardt: We have the information.
Bohn: Anyone here with the history of BRW, we went through. I have a bad taste in my
mouth for BRW.
Gerhardt: They've done all the demolition projects. You know they've got the whole set of
plans and specs for demolition. There's another engineering company that probably could do
it. They're familiar with how we like to do it. They're familiar with the contractors that have
done this work. It really takes a lot of burden off of me and the managing this and bringing
somebody else new on. It's not a large dollar amount for them.
Bohn: How much? Not a large dollar amount for them but how much dollar amount is it for
the HRA?
Gerhardt: It would cost you about $5,000.00 for them to put the plans and specs together and
see the project through to those specifications.
Chmiel: Does that cover that environmental aspect too?
Gerhardt: No. That would be a separate contract. They are not providing environmental.
Environmental is, I'm getting bids from two companies.
Robbins: Todd, from what you're talking about, could you please just tie in what your
discussion is in terms of the items on the agenda, where this falls in because I don't see what
you're talking about in terms of the.
Housing and Redevelopment Authority - Sanuary 19, 199S
Gerhardt: It's number 9. The demolition of Pony/Pauly/P~zmus. Jim has brought up.
Robbins: Which is part of section 2?
Gerhardt: Section 2. I have it as a part of the goals. Number 9. Page 3 of the goals.
Robbins: Thank you.
Boyle: Jim, did you have any?
Bohn: No. I'm just not happy about BRW being involved in this.
Chmiel: Yeah, you're fight Jim. There's been some real concerns with what BRW has done
within the community.
Bohn: I hate to give them another dime.
Gerhardt: ...that I'm working with them and again, they've got the data~ They know the
advertisement. They've worked with, we only had two people that...bids for demolition.
That's been Wickenhauser and Al Nelson and they know who to call. Who to communicate
with and that usually gets you a lower bid because they work well together...but if you don't
want to work with them, we can go elsewhere too. It just may jeopardize the schedule. Road
restrictions go on March 15th and it's k/nd of tight schedule. I know your displeasure with
them and that's sta~s reasoning for going with them is just the history of working with them
on demolition. We've always had successful demolition projects with them and we haven't
had a problem.
Boyle: Charlie, do you have any issue with this?
Robbins: No.
Boyle: With BRW.
Robbins: No.
Boyle: Don, do you?
Chmiel: No. I think if it's strictly with the demolition portion, they've been very consistent
with that with what the city has looked at for projects. But if it goes beyond that I have
many questions. But I don't with this at this time.
Housing and Redevelopment Authority - January 19, 1995
Boyle: Jim, would you like to carry it through?
Bohn: No.
Boyle: Alright. Can we move to item 3.
F_~TABLI~H 1995 MEETING DATES.
Boyle: Well right out of the shoot I've got a, I'll be out of town on February 23rd. And
possibly the 22nd of June.
Bohn: Is it possible to change June 22nd to the 29th? Are these in conflict with the Council
meeting, is that the reason?
Gerhardt: Let me make a copy of, I've got a calendar upstairs that shows you when the
Planning Commission and Council meetings are.
Robbins: Todd, can we just go through the order of and say we would accept these dates.
Bohn: Well let's get the Council meetings first and then we'll know where.
Chmiel: Well the Council is every second and fourth Mondays.
Robbins: Because I've got conflicts. Gary's got conflicts. Jim has and Don has so we're all
going to have conflicts and so to just keep things in order, if we could just accept the dates as
presented subject to change.
Chmiel: The only date I don't know what we're going to do as far as November is concerned.
What date are we having on that? Let me go get the calendar. As far as HRA. It's blank.
Bohn: Okay, Council is the first Monday of the month?
Chmiel: Yeah, the second and fourth Mondays of the month.
Boyle: So you'll have a conflict with the 27th, if that's a Monday of February.
Chmiel: No, I don't. These are Thursdays.
Boyle: No, I mean for Council. This was the date I was talking about for that month's
meeting.
Housing and Redevelopment Authority - January 19, 1995
Chmiel: Oh, oh, yeah. That would be anything on a Monday would be.
Boyle: Would be a problem, yeah.
Chmiel: Because normally that's work sessions also.
Bohn: For what? Was that date in June that you're talking about?
Boyle: No, that was something else.
Bohn: And February. June and February.
Boyle: Yeah, Sune and February are my two conflicts fight now.
Chmiel: These .are all, all these dates are frae with me. All except November doesn't have
any date.
Boyle: Planning must alternate the weeks between Council right?
Chmiel: Yeah, they're the first and third Wednesday.
Gerhardt: Does anybody else have conflicts? I've got Gary down for February 23rd and June
22nd.
Robbins: I've got a conflict on May 18th, Sune 22nd, and 9/21.
Chmiel: We can either move it up a week or down a week. For those Thursdays.
Boyle: Well let's take February first Is there any, I see on February, if we moved it up, the
16th would fall the date after Planning Commission.
Robbins: On the 16th I'm gone.
Boyle: Would there be a hinderance of moving it to March, oh March 1st is right on a
Planning Commission meeting isn't it? No. No, it would be March 2nd I guess.
Robbins: Chairman, what I would like to entertain is perhaps we accept the dates as
presented and those who can make the meetings will make the meetings.
Housing and Redevelopment Authority - January 19, 1995
Boyle: Fine, with the exception of February is our next meeting and if we review each
month, a month prior, I think we may be in a position to make a change. So if I could attend
the February meeting, if everybody's in agreement to either go a week up or a week back, I
would appreciate it.
Chmiel: Did you say the 16th was bad for you Charlie? Of February.
Robbins: No. That's fine.
Gerhardt: The only thing that does worry me is the award of bid on the demolition.
Chmiel: You think moving it up a week would be too quick or too much?
Gerhardt: We're bid opening February 16th. We can still do that. I can bring the bids on
that day. I can still do that. As you get your packet though, the bids will not be in there but
I can present them to you that evening.
Boyle: I have no problem with that.
Chmiel: That's fine.
Gerhardt: That will work then, if it works for everybody's schedule. And it is open. The
room is open. It is going to put a little pressure on Don and Mike because that is a Council
week. And Planning Commission.
Chmiel: That doesn't bother me one way or the other.
Gerhardt: Yeah, and I don't see taking.
Boyle: It should not be a long meeting. Okay. Let's do it then. And then I think what we'll
do, let's just review each month when we come and see how they're doing because we all get
stressed a little bit. Hi Mike.
Mason: Big crowd.
Chmiel: You should have seen what we turned away.
Robbins: Chairman, what I'd like to do is to entertain the motion that you have stated and
we'll just approach each month as stated.
Housing and Redevelopment Authority - January 19, 1995
Boyle: Fine. If we'd like to take it as a motion. Mike, the process we're in fight now is
reviewing the 1995 calendar dates. There was a conflict in February and knowing that you
like to attend 3 meetings in one week, we moved it up to the 16th.
Chmiel: I said that was alright.
Mason: Well, if the Mayor says it's alright, February which? The 16th? Yeah, I probably
will not be in town on the 19th of October. But I don't have any trouble with moving the
February one up.
Boyle: So rather than approve the whole year, why don't we just, and I don't know if a
motion is necessary but we review each.
Chmiel: Maybe what we could do, yeah. Review each month but I think March and April
were fine. July and August was alright. And November, what date in November are we
having it?
Robbins: Mr. Chairman, there's a motion on the floor regarding to entertain approval of the
one month and then we'll review each month currently following.
Boyle: Okay, could I have a second to that motion?
Chmiel: I'd move it.
Robbins moved, Chmlel seconded to approve moving tim Housing and Redevelopment
Amhority meeting date in February to Febl~mry 16, 1998 and to review each subsequent
month at each meeting. All voted in favor and the motion carried.
Chmiel: Todd, what about that November month?
Gerhardt: It's the 9th. November 9th. That's an off Council meeting and 2 weeks prior to
Thanksgiving.
Boyle: And normally we don't meet in December do we?
Gerhardt: Normally we don't. I put in a date just in case if there's a closing or something.
We have to hold a public hearing...or anything like that. But we'll try to do a little
Thanksgiving dinner thing on November 9th.
Boyle: Turkey?
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: Turkey?...pork chops.
Boyle: Okay, we'll move fight on to number 4.
REVIEW SPECIFICATIONS FOR THE SALE OF LAND ON WEST 79TH STREET.
Gerhardt: Mr. Chairman, HRA members. Staff had been approached by both Charlie James
and the Brookdale group, specifically Craig Oberlander and his partner, and showing interest
in purchasing the land due east of Americana Bank, which is approximately 3 acres. With
that these two groups seem to be financially sound. Have money and have shown success in
doing projects. And with that they were very eager to get some type of offer, kind of what
we might be looking for as a price on that. So staff...and put a list of specifications together
of what expectations that you may see that you want to get out of that property. And with
that staff...go on the very high end of everything that we could think of that you may want to
see against this property. As to uses. As to price and as to the land that sits next to the
Chanhassen Inn. We were discussing maybe purchasing that and how you control how it's
going to come about... We put that as a condition on the resale of this property. Staff has no
control over how these specifications, I mean they cannot come back and sue us saying well
Todd said this in this letter. You make those decisions and I do not bind you to anything that
I may have sent out to these people. They were eager so I went ahead and put something
together for them to review and come back and make a counter offer. I want you to have the
opportunity also...
Boyle: Very good, thank you Todd. We'll start with you Charlie.
Robbins: Todd, I guess comments. This, the way it's structured, at least what I understand of
it, is a major piece of land. Would this be the land from the bank, the Americana to the
driveway of Cheers? Or just a part of that.
Gerhardt: No, it would be all of the land.
Robbins: It would be all of the land.
Boyle: There is a portion there that I think though is wetland, is it not?
Gerhardt: Yes. Part of the site is designated as a wetland.
Bohn: But that would be filled and traded for property across the street, right?
10
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: That's our hope on this. I mean everybody's got to work together. Somebody has
to purchase the...piece and with that you can't bind the City Council to these decisions. But if
the City Council would agree to have that wetland relocated over onto that area, then they
could build a wetland or build on the wetland and then replace it over onto the McCarville
piece.
Boyle: Charlie, you're trying to make a point I think.
Robbins: Yeah. Just going on through your letter it talks about approximately 130,000
square feet. I think that is about 3 1/2 acres. I thought that the parcel betwee~ the bank and
the liquor store was more than 3 acres. That's just one question.
Gerhardt: I can verify that.
Robbins: It says the Authority has permitted and so on for permitted uses.
body shops, car, boat. Why are these not uses? It says non-permitted uses.
boat sales, car wash, fast food, banks and so forth.
Non-permitted,
Body shops, car,
Gerhardt: You have
Robbins: Not right now to answer but in terms of just, a part of your letter. As far as the
purchase price, $8.00 per foot versus $6.00 per foot or $10.00 per foot. I can't speak to the
price. I guess I'd just like to know more about what the structure is with the land.
Gerhardt: Would you like me to answer those now'?
Robbins: Chairman?
Boyle: Yeah. Go ahead Todd, if you can. Whatever.
Gerhardt: The $8.00 is, I wanted to go on the high end of the thing. These are what I'll call
tho maximums. Anybody can come back and counter, and we'll bring that offer back to the
HRA for your consideration. Somebody may come back and counter with $6.00, $5.00,
$3.00, a buck. I will bring those back to you. And I made those representations to people.
These are our expectations. High expectations but they are not, we are, we would be willing
to listen to ~nybody's offer. That deals with the $8.00. I will verify the 130,000 square feet
size of the lot the best that I can for you and get that back to you. As to the non-permitted
uses. That comes off of the Highway 5 corridor ordinance and the Planning Commission and
City Council have adopted a Highway 5 corridor ordinance that allows certain uses along the
Highway 5 corridor. And all of those uses are non-permitted with the exception of a bank.
11
Housing and Redevelopment Authority - January 19, 1995
Bohn: I thought motel tOO.
Robbins: I guess I would question the item on several of those is that at one time we were
looking at the Lariat Group, which was the Applebee's. Owners of Applebee's. Why is, one
time we're looking at another group besides the bank, which had a fast food in there and was
also that Bernie Hanson had looked at that for being a garden center and lumber yard use and
it's not saying it's a non-permitted. So what changed?
Gerhardt: You could, I think fast foods are included but I've heard some people that they
didn't want to sell.
Bohn: Lariat never had a fast food. They had Applebee's but not a fast food restaurant.
Gerhardt: And if you wanted to include fast food as a permitted use, we can do that. As to a
bank, Americana, we sold land to them. I'd have to go back and re-verify if we had any
restrictions against not allowing a bank to go on there but in fairness to them, it didn't make
sense to add another bank right next to their bank. But if you would like to include bank in
there as an option to see that, we can do that.
Bohn: The question I had was the hotel. Where did that come from?
Gerhardt: I'd have to go back and re-verify. The hotel probably could be a permitted use.
Bohn: Because we permitted use along Highway 5 for a motel in that Vision 2000 and
Highway 5 study. Motel was one of them that was permitted.
Gerhardt: Okay. We could, I'll go back and re-verify hotel. I'll go back and...
(There was a tape change at this point in the discussion.)
Boyle: Motel. And it fit within the Highway 5 corridor policies and was not a restricted use
for that matter, then we would probably entertain whether or not that could up in the
permitted or not. So I think to sit here and debate this for long period of time is fruitless.
Bohn: The Highway 5 corridor did not restrict hotels.
Boyle: Right. I'm just using that as an example. And we could shuffle at the time. I mean
if, Buyer A said I want to do this, then we consider whether or not we'd want to move. Then
it...is a permitted use.
12
Redevelopment Authority - January 19, 1995
Staffs reason for not including hotels and motels is that this is one of the last
land that is available and we felt we wanted to see more retail in the area. A hotel
.ere's still some uses, kind of day to day uses that citizenry would utilize and
otel in there you're taking away other opportunities.
agree. I also think that maybe a sit down, nice sit down, an Applebee's for
~at was mentioned before would be a good example of good potential property.
,nd revenue at that location, as an example.
Vou wouldn't believe the number of phone calls I receive on Taco Bell. There's
.t there that Taco Bell wasn't corning in and I've taken 5 phone calls stating why
Bell coming.
:ally? Why aren't they?
They are. And I always say, you can be tho hero of your company and go back
em that Taco Bell is corning and you brought it back.
,n, do you have any comments on this?
x'o. I'm just thinking the entirety as it is, I only have just one concern even under
.Led uses, which I was thinking of excluding, is that auto service center with no
~rage for cars, tires, parking... That has been a very highly discussionary thing with
d I'm just wondering whether that should be there but I don't, I think you have to
!ce of something and something. But I think staftas position should be maybe
ut the fact of saying, what do you think wo should have within as well. But it's
~me up with some of those decisions but I think too, hotel or motel would bo
!ated from that particular location rather well. But I'd say, just accept the entirety.
.:o, in here if I was reading somewhere about, yeah. If closing does not occur
:ember 31 '95, the option/purchase agreement will be declared void by both parties.
i:~k that's sort of a long option? Normally options are granted for 6 months.
Typically to get through the city process it takes 3 months and people will not start
md specs for their construction on their building which takes approximately
"rom 6 weeks to 8 weeks to complete to get a building permit. And then to get
~,~ there too so you can do the financing on a building permit and plans and specs
cion with each other but I feel like I could come back every month and do a
on to things for you guys. So 6 months to go through the whole city process and
't think was too long...in dealing with Taco Bell for almost 2 years now and we're
'opefully close here in March. It's up to you. I mean if you want to put more
13
Housing and Redevelopment Authority - January 19, 1995
options in there, that's up to you. I would think 6 months would be more than adequate for
you guys to say, to give you enough time to get your ducks in a row.
Chmiel: Well that's what I was thinking is giving a 6 month option to purchase and then
they've got a year to build within that particular period of time. I think that way we don't
have to toy with an option and keep waiting until somebody decides to make up their mind.
think if we push them a little bit more into a comer and say okay, let's do what you want to
do.
Boyle: I have to assume Todd that both of these individuals probably have some pretty good
clients in mind to build there. I mean and because of that, maybe moving it up, I think I'd
agree with Don.
Chmiel: That's all I had.
Boyle: It's your turn Mike.
Mason: I share Den's concern about the auto service center, knowing all the flack every time
that comes up. But again, I mean these are guidelines and like you said earlier Todd, they
know nothing's going to be approved until it goes through us anyway. I too like the idea of
more retail as opposed to hotel/motel but then also like Gary said, if somebody's going to
come in and say, yeah. I'll give you $8.00 a foot, well. I think it would behoove us to listen
regardless of what it was, within limits. So this sounds fine. I do think there are the
Highway 5 task force ordinance. I mean that ordinance certainly is in place that anyone
would have to conform to anyway. So I'm fine with this. And with Den's and Gary, if they
want to change that, that's fine.
Gerhardt: Staff did put that in for a reason. Tires Plus does have a purchase agreement with
Mr. McCarville and they're not excited on building on it. I don't know if they'll ever build
there or never build there and I didn't want that to influence you in making your decision but
the Highway 5 corridor plan does allow auto service centers as a part of that. And we
thought with their purchase agreement they could tie into item number 8 fairly easily in
accomplishing our goal...McCarville piece to us and that'd be purchased for $50,000.00...
Sounded like a good deal and could be worked out. We do not want to see that kind of use
there, if ifs sold to that individual or you guys want to go ahead and purchase it yourself.
We can still take that approach and ifs not a concem...and purchase that.
Chmiel: Yeah, there's two ways you can go. But you're still saying that the mitigation would
be of a wetland that's existing on this parcel replaced by the other parcel that Don
McCarville.
14
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: Place it on the McCarville piece.
Boyle: Okay Don, do we want to change that December 31st date. The closing date does not
occur by December 31st. What would it be? Are you saying Todd that this would put a
hinderance on you to move that? Burden might be a better word.
Gerhardt: Not on me. I mean if you wanted to reduce this down to 3 months, that means
they really have until August, September, October. You know a 3 month option. 4 month
option. Thafs plenty of time I would think. To get through the city approval process, and
that's how I stated it that the buyer must secure all government permits, specifically site plan
and building permits and others that are needed. That means that you have to have somebody
come in, roads on the property, get the city site plan approval, complete plans and specs on a
building and pull a building permit. I just don~t think.
Mason: It won't happen.
Boyle: You know that's true. If they close on it July 1st. December, that's 6 months that
we're giving them time in which to get everything done and closed.
Chmiel: Well, 6 month options can be done rather quickly without too much problem but.
Gerhardt: ...January's gone. I mean the soonest that they probably could get on is either later
part of February, March. March, April, May.
Boyle: Stays December 31st. We~l leave it where it is.
Chmiel: Yeah, that's alright.
Gerhardt: I've got a feeling they'll come back and probably will modify this...
Boyle: Charlie?
Robbins: Comments. In fact I have number 6. Paragraph b, c, d, I guess e and f. In the
past we had some problems with the James property in terms of where we had some things
that we had to kind of clean up later on that we were not aware of and some of these are also
entitled in this paragraph about levies and different taxes and things that the James property
went through. I guess I would question the item number (c). Do we know those exact
dollars? Number (d). Seller shall pay at closing. Do we know those exact costs? And (e),
buyer closing. The recording fees and title, because there could be some items that might
surface later on this land that may not be enc~_~mbered at this time.
15
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: As to (c). That is the actual cost of the specials down to the penny. I took that
right off the card. As to the taxes, right now it's tax exempt so nobody's paying taxes on it.
And as to any future levies or liens that might go against the property, it's in the city's name
and I can't expect anybody to file a lien against us for that property. And there are not any
plans of future projects, development projects where there would be additional specials
against the site. And as to the recording fees, title insurance, the dollars associated with that.
They're all going to fluctuate. Some of them were the...but those are language that we've
taken out of all our purchase agreements. Exactly I took it out of the last one we had and
had the City Attorney review it too and he felt comfortable with those. And those are just
shared costs and expected costs when you do a closing that the buyer is responsible for and
the seller.
Boyle: Was that answered to your satisfaction Charlie?
Robbins: Yes.
Boyle: Okay. Are there any other comments regarding item number 4? Okay, if not we'll
move on to item number 5.
Gerhardt: If I could just make one comment. For non-permitted uses, banks. In or out? Do
you want to leave that as a non-permitted...
Boyle: I think at the time we leave as is. That's my recommendation. I mean if a bank
comes in, we would consider but quite honestly putting banks back to back, I don't know if
that really.
Bohn: Doesn't make any difference to banks so. In Excelsior you see TCF and Norwest
right next to each other. In Chaska, kitty corner from each other so, the banks don't care I
don't think.
Mason: I say for now we leave it as is and see what happens. That's my opinion.
Bohn: I'm surprised hotel was in even in there. I couldn't understand why hotel was in there.
Gerhardt: ...more retail in the community. If you put a hotel on there you...
Boyle: I kind of agree with that personally.
16
Housing and Redevelopment Authority - January 19, 1995
Chmiel: But the only argument I think you can get from that is if an individual wants to
come in with a bank, it's pretty hard to say you can't put a bank there because there's one
next door to you.
Boyle: Oh exactly. That's what I mean. We can have that on there but if a developer comes
in with so and so bank, TCF wants to put a bank here. Would you change? We'd probably
consider it very seriously.
Gerhardt: There are banks very interested in being there. There's a couple right now...dollar
amount.
Mason: Really, who?
Gerhardt: Richfield Trust...but before you take a decision on that, I'd like to go back and see
if we put any exclusions on the land... I don~ know if you want to be fair, not fair.
Americana is here...
Bohn: I don't think so. I don't remember a restriction for another bank.
Gerhardt: I don't know if we did.
!
Bohn: I don't think we did.
Gerhardt: I know we talked about it.
Bohn: I don't think there was a restriction but I stuck the hotel across the street probably
wouldn't want another hotel across the street either. Chanhassen Inn wouldn't want a hotel
there.
Boyle: Item 5 Todd. Would you like to brief us.
CQNSIDER APPROVAL OF CHANGE ORDERS 3 THRU 12 FOR THE HANUS
PRO~,
Gerhardt: This past summer we discussed the change orders that were going to occur on the
Hanus building. The largest dollar amount associated with this was, that I brought back to
you was the granular amount. That we were going to change the specs to go from 6 inches
to 9 inches based on meeting road specifications. And that's the largest portion of these
change orders... The other ones, if I can just briefly go through them. Cul-de-sac
modifications. As we got out there and saw the way it laid out in front of the Hanus
17
Housing and Redevelopment Authority - January 19, 1995
building, it just didn't flow right when plowing snow and a vehicle might want to drive back
towards the building. That it just didn't look like a road section. That they might hop the
curve and they might have some problems hauling snow so with that we made, we pulled the
nose of the cul-de-sac back and straightened it out a little bit...
Boyle: Todd excuse me. I don't mean to interrupt you but I don't think it's necessary that
you have to go through each and every one of these unless somebody wants that. Maybe we
approach it as such that if there's a question regarding any one of the changes, let's address it
and ask the questions. Some of these are quite, the result of something else probably.
Gerhardt: Just off hand we extended the trail and tho specifications ended right at tho Hanus
property so we extended the trail to match up with the existing trail along Great Plains. That
was another cost to the project. Just to finish the connection with those. There's some costs
in there and servicing grounds during construction. The bituminous was...to provide
temporary access.., and also upgraded the concrete apron around the building to get access
into some of the businesses. That is a nutshell on that.
Bohn: I have one question. We eliminated the pork chop that was at the entrance into the
parking area to the Hanus building. We were going to cut that pork chop off. Just make a
rectangle and now it's gone completely I notice.
Gerhardt: Yes. And it was...out there and it was just ridiculous. I mean Mr. Pufahl couldn't
get into his bay. I mean it was ridiculous. He could get into it but it was very difficult. It
was confusing on flow and tenants were saying, we're never going to park this way. So we
got to the point where we just eliminated it completely and for ease of snowplowing and
egress, in and out of the building. Mr. Brown has a large semi that delivered fires and
batteries almost on a daily basis and it's very difficult for that truck driver to get in there
without a proper opening. So we bent to the tenants out there and gave them what they
wanted, and they're very happy with how the site is laid out right now. We also...that if
anybody would happen to push their parking out into our, what I'll say is the roadway section,
that we would put some barricades up to eliminate that and...
Boyle: Okay, any other questions? Mike.
Mason: I looked through this and I know we've been through this before but I don't
understand. Well, Change Order No. 3 or Change Order No. 4. 5% indirect overhead and
then 10% overhead fee. I mean, I don't get that quite honesty and I'm also a little concerned
that all of this stuff had to be modified after it was put in. I mean if something doesn't work,
it's got to be fixed. I understand that but in the design in the first place, and obviously you're
not responsible for it. I don't mean to imply that but who's designing this stuff for us?
18
Housing and Redevelopment Authority - Sanuary 19, 1995
Gerhardt: Well, if I can shift to the overhead is probably the best way to explain this. What
we looked at was just where the property lines end and this was all going to stay as a cul-de-
sac. It just didn't seem fight. We wanted to make this look like an extension of the road. So
after being out there and looking at it, it just didn't flow right. You were going to get people
to continue to park out here. It would have been real tough for Mike to plow this area. So
we just made it look like an extension of West 79th Street.
Mason: Yeah, I guess I'm just concerned that whoever is designing this stuff for us doesn't
anticipate some of these kinds of things. I mean this is, I mean just that one alone is, you
know that's a $4,000.00 change. And again, I'm not ragging on the city here but that's a
pretty expensive mistake or oops, it didn't work. We have to change it and I don't know what
we can do about that. That's just a concern I guess.
Boyle: Just a thought Mike, but it's a good point
Gerhardt: And I agree if the engineer, I mean it-would have been nice if the en~neer would
have caught the granular too.
Mason: Well it would have been.
Gerhardt: It's difficult to go back and do change orders but the nice thing is, change orders
you catch some of these things too to make them better you know once you get out there.
Mason: Right. I just, I mean.
Gerhardt: They stay within the boundaries. Some people have this tunnel vision that they
don't want to expand out of the project area and they saw where this road, or the project area
ended was the Hanus property line and it would have been nice if they would have realizing
that the cul-de-sac really didn't necessarily serve a purpose...
Mason: And I guess that's something we need to take a look at. I mean if people we have
working for the city don't, aren't far sighted enough to see that kind of stuff, maybe we need
to take a look at that too.
Gerhardt: Well it was Bill Engelhardt. I mean he knows.
Mason: Well Chairman.
Boyle: Yes Charlie.
19
Housing and Redevelopment Authority - January 19, 1995
Robbins: I guess I would like to comment on paragraph number 2 of the cover memo. To
quote, the total amount for these change orders is 37 but 28,9 is related to the pedestrian
bridge project. I'm not sure whether we've even agreed to that project on the pedestrian
bridge project. Hence, how can we be charged for something we've not even agreed to? Mr.
Chairman?
Boyle: You're not asking me the question I assume. I mean you're addressing that to Todd?
I can't answer your question.
Robbins: Well you're the HRA Chairman. I'm just asking you. It says basically $29,000.00
of $38,000.00 is for the bridge and we've not even said we're going to use the bridge.
Boyle: Related to the bridge project which continues to grow which is going to be a major
issue at some point in time because we've got a lot of money into it.
Gerhardt: I came back this past summer and asked the HRA, there's going to be some
additional grading work that's going to need to be done on the pedestrian bridge site if the
project gets the go ahead. You have a problem in place here to match grades and we had
some fairly good quotes here for hauling material. At that time we decided to bring materials
from Charlie James' site to the back side of the Hanus to match the grades onto the site out at
Lake Drive on the south side of Highway 5. At that time the HRA gave me the go ahead and
do that work. The official document. You've already authorized that work. And yes, you
have incurred expenditures with the pedestrian bridge. We purchased the land on the south
side of Highway 5. You authorized plans and specs to take bids on the thing. The last step
that you will have to make is to award those bids at your March meeting. Or denial.
Bohn: I thought, isn't MnDot taking the bids?
Gerhardt: Yes. But you still have jurisdiction and authority...
Boyle: Why is MnDot taking the bids Todd?
Gerhardt: It was an Is'rEA application. It's their responsibility to do that.
Boyle: Okay. I think I recall that discussion. Okay. 'Charlie, did that satisfy your question?
Or comment or concern.
Robbins: No, just in general. Have we spent any amount of that $28,000.007 Or $37,000.00
or whatever it is for the bid for a bridge which may not happen.
2O
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: Yes. You spent close to almost $200,000.00 already. I think I updated you at the
last meeting on what we had expended. What the expected price of the project would be and
that is I think around $200,000.00.
Boyle: Additional? You mean how much has already been invested.
Boyle: I think you're right. It's $200,000.00 and something.
Gerhardt: We had to prepare plans and specs which includes substantial, we did some
renderings to come up with designs. We paid for the application for the ISTEA. Those are
some of the list of items. We purchased land as a part of that...
Boyle: If there's no other comments, I'd like to have a motion to approve the Change Order
Numbers 3 through 12 for the Hanus project.
Bohn: I'll make the motion.
Boyle: Do we have a second?
Chmiel: I'll second that with just a little discussion.
Boyle: Okay.
Chmiel: In looking at these trees that have gone in, by the way having Hoisington-Koegler
Group do some of this, I'm losing a little faith in them and I think the costs have escalated
because of some of the inconsistencies that they also had as well and I'm not too pleased with
that. But in addition to that,' do you feel that most of these trees that they have purchased to
put in, our unit price are fairly decent? Because I know just about what you can buy some of
these for and.
Gerhardt: Can you help me on what page?
Chmiel: Go to page, partial payment 5 of the base bid on the site improvements. Item
number 5. Page 1123. And I know this has already gone by but I look at some of this, some
of these costs that are incurred. Here to we did a lot of, we dropped the curb section and we
also bid a concrete walk. It wasn't that costly but nonetheless, all these little things that keep
coming up. I think they should have been caught at some time along the 6me. Keep coming
back to haunt us and those dollars keep going and going and going. And somehow we just
21
Housing and Redevelopment Authority - January 19, 1995
have to put a stop to them. Totally for the base bid on all those things if they went through,
I have gone through 44 that came up to about $173,984.00...
Bohn moved, Chmiel seconded to approve Change Order numbers 3 through 12 for the Hanus
project. Ali voted in favor and the motion carried.
(There was a tape change during Mayor Chmiel's discussion.)
APPROVAL OF BIIJ~.
Chmiel: ...and Jerry Singer and there was another one. Yeah, Richard Anderson was the
other.
Gerhardt: Those are the relocation for the tenants in the Pryzmus building.
Chmiel: Did he get, which one is Richard, oh! Okay. I know Richard.
Gerhardt: ...Mayer, Jerry Singer.
Chmiel: Now was there another individual there as well?
Gerhardt: Yeah. Richard Anderson.
Chmiel: Yeah, that was the other one on the other page.
Gerhardt: And just the three. There was one other that we did pay $500.00 to in July. We
have not gone back after him to try to recoup that $500.00. He moved in after the I-IRA had
purchased the building, thus not qualifying him for relocation. So staff felt that that could be
his compensation...
Robbins: On page 1, Swenson and Associates. The bottom of page 1. And then Eastman
Kodak, we spent $5,300.00 to buy something. What did we buy?
Gerhardt: We bought the color unit to the copier upstairs that made these pages look blue.
Robbins: So we stay with black and white it would have cost us nothing then?
Gerhardt: That's true.
Robbins: Oh, okay. Back to Swenson and Associates. What was that?
22
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: Swenson and Associates was the appraisal that was completed on the McCarville
piece and that came in at $100,000.00.
Boyle: Todd, just to ask the question. Who approves the purchase of a color unit to a copier
that spends this HRA money? I mean what if we didn't approve this bill at this point in
time?
Gerhardt: You have money in your budget that was not delineated as a detailed item and so
staff go get $5,000.00 from the I-IRA budget and we'll take it out there if we can. Bring it to
the HRA as a part of the agenda~ If you do not want to purchase that, then we'll go back and
we'll find another spot for that.
Robbins: But I think the point of the question is pretty well taken. You know we don't get
the full benefit of a copier here. We don't make a lot of copies here and for $5,000.00 for 6
copies in color does not give us a whole lot of benefit of this thing. I guess I would have to
question the purchase of spending 6 grand or, well I'm sorry, $5,272.00 of line item 057542,
why it was approved because we did not approve to buy a copier.
Gerhardt: That's true. It was a line item that you had lef~ in your budget. It was not
delineated in there and if you wish not to assist in the cost of that, we can look elsewhere in
doing that. We can try to f'md somewhere else in the budget.
Robbins: I guess that would be my comment Chairman. I'd like to see that item taken out
because it's not our budget item.
Boyle: Jim, what's your feeling on that?
Bohn: I must agree. But if the city doesn't have the money to buy it either. Does the city
need it?
Chmiel: I was going to ask, if I could interject. Other than giving us a blue and white, does
this benefit the city in any other way? For having this availability of the blue.
Gerhardt: It's more than just blue. You've got red, green, yellow, and one other color. And
it's something that we'd like to have to hi~hlight special sections of agendas. Park and Rec
fliers. Reports that we put out in the budget. Debt analysis. Doing a variety of other things.
Chmiel: If you have any graphics, you can put them into color you're saying then.
23
Housing and Redevelopment Authority - January 19, 1995 '
Gerhardt: Yep. If you would like for me to bring this back as an agenda item to justify it
more, I could do that. I could sit down with Karen and give you a...
Chmiel: Yeah, I'd like to find out a little more myself. What it's going to do for us.
Boyle: Do you have feelings Mike?
Mason: I think it would, I know it's more work for people but you know when I first saw
this I thought, well big deal. But I do know that having color capabilities is definitely
advantageous. But it might be nice to get a little more information on it.
Boyle: I would assume that the final outcome is going to be the same but I think the point
being made here is that we be prudent with the expenditure of the funds is what they're
saying Todd so, with that we're going to ask staff to give us a little more information,
justification for a color copier. Or color unit for the copier, excuse me.
Chmiel: Maybe if I could just interject one more time. Maybe it'd be advisable to come and
ask the lIRA prior to acquiring and purchasing. I think that might be where it comes.
Gerhardt: I agree. But when it comes down to a budget and they see these things and ask
and put it on there...but you're right, I should put it on an agenda item for an open discussion
and ask you.
Boyle: So I will now ask for a motion that we approve the bills as amended.
Mason: As amended?
Boyle: As amended.
Mason: Second that.
Gerhardt: As amended means everything with the exception of the Eastman Kodak?
Boyle: Correct.
Robbins: Discussion?
Boyle: Discussion.
24
Housing and Redevelopment Authority - ~Ianuary 19, 1995
Robbins: Is that also saying then that in the future we won't see these because it says on
here, Accounts Payable 11-14 and now we're seeing it now in January, I mean 2 months later
so really we didn't have any approval authority on these bills because they've already been
paid, correct?
Gerhardt: Most of them.
Robbins: It says accounts payable 11-14. Check number, Post Master, Post dated and so on,
but it's already 2 months later so we really did not get authority on paying these bills because
they've already been paid.
Gerhardt: That's correct.
Robbins: I think what Mr. Chairman's saying, and I guess I'd also request, to see these in
advance before any accounts are paid at all, subject to our approval of paying the bills.
Because there are some items on there we might question. Again, as came up in the question
here. We don't know what Postmaster is for postage. We don~t know for an example what
Holmes and Graven is or T.F. James. It says special assessments and so on but I'd like to see
a review before we pay any bills. My personal opinion. Before we pay any bills, I want to
see the bills before we pay because why show us after the fact.
Boyle: Todd is that logistically possible? And maybe logistically is not the fight word. Is it
possible to review bills before paying, I mean in front of lIRA?
Gerhardt: The City Council operates that way but tho City Council meets every 2 weeks.
My concern is a 30 day processing, and you did not meet the month of December...It's
something that we can do if you wish. Staff works with a budget and if you, like the copier,
do not want to pay for it, that's... The bills will get paid but if you wish to have Jean pull
those, City Council also reviews these...
Boyle: These same bills?
Chmiel: Yeah the only concern I'd have with sometimes holding some of those bills, if it
goes beyond that timeframe, that we have to pay them by, but I think Charlie brings out a
good point. We should see these things before they're already consummated by staff and
presented to the liRA.
Bohn: If we see that they're going to purchase the copying machine for $5,000.00 and know
about it before it's purchased or the time it's purchased, we can do it in less than 30 days.
25
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: How about those larger capital purchases. I mean the Holmes and Graven, I mean
those are attorney fees. My travel and training.
Robbins: Chairman. This is the Chairman of HRA. I guess in comment to those questions I
would, I guess to ask, I shouldn't say ask for a motion but to give a motion in terms of items
that are ongoing for travel and training, etc, postmaster, ongoing normal expenses. Those
could be approved by the Chairman without review by committee and special exceptions to bo
reviewed by the Board.
Mason: Mr. Chairman?
Boyle: I don't quite understand.
Chmiel: Yeah I don't, go ahead.
Mason: Well yeah. I was just, I mean.
Boyle: Where do you draw the line?
Mason: Yeah. I've had this discussion at a different meeting here. Not with these people.
Yeah, where do you draw the line? What is the line? $500.007 $600.00? $700.007
Robbins: I'm not saying dollars. I'm saying...is okay and projects I draw the line.
Mason: Well I guess I have enough faith in staff here. I mean I do personally think bounds
were overstepped on spending the $5,500.00. I think that should have come to us before we
approved it but I think that quite honestly, to have to go through every bill or who's going to
decide which bill is and which bill isn't seems like a lot of busy work to me.
Boyle: I can see us spending twice as much time as we have tonight just discussing the bills.
Each meeting and I'm not quite sure that's in our best interest.
Chmiel: I don't want to put this into record but the County Board goes through line item by
line item on bills and it's just a damn waste of time. I mean normally.
Boyle: I could see where that could be. The issue was raised tonight because of a color
copier unit to add to the copier and I think staff has got the message. And there are certain
other items that may come up at times that should be questioned and I would hope that
people would say gee, is this one of those items that would be questioned by the HRA.
26
Housing and Redevelopment Authority - January 19, 1995
Therefore, let's get it in front of them before we go further. I know that's making it very
general but that's kind of the message I'm getting overall Todd.
Mason: I agree with that Mr. Chairman.
Bohn: Could. I ask a question? How much money did we spend with Hoisington Group in
19947
Gerhardt: Well the Vision process I would say was probably around $50,000.00. If you take
Mike's time and Fred's time, the young lady that worked with them and secretarial 6me.
Fred...I mean he had at least 2 meetings a month for a whole year and at least 1 meeting a
month... The ad hoc group, their meetings and their time working back in the office. He
spent substantial time...
Bohn: About how much money did we spend on Hoisington Group?...total7
Boyle: Charlie.
Robbins: Comment. Would it be possible to obtain a listing by category for the expenses for
the year, i.e. it says Postmaster or postage. Postmaster. I would think that our software then
could give us a printout for the year showing how much we did go to postage or to, for
example the various categories that you've got listed of how much we spent. In other words
taken the other way around. Just for the year, how much we spent in the various categories.
Gerhardt: You asked for that at your last meeting and as soon as we close our year end
books, we'll present that. What we spent in '94.
Robbins: Thank you.
Boyle: What color would you like that in Charlie?
Robbins: As long as I bought the copier, I want it in many colors.
Boyle: Okay. Oh excuse me, there's a motion on the floor that has not been seconded to
approve the bills as amended with the copier machine. I believe you made the motion Mike.
Chmiel: I'll second it.
Boyle: And Don seconded it. And we've had discussion and comment.
27
Housing and Redevelopment Authority - January 19, 1995
Robbins: Discussion. One is to resolve the questions raised about the bills.
Boyle: Yes. Maybe we'd better be specific then to what questions. One was the copying
machine. Or unit to run color.
Robbins: The copying machine. And there were just I think some other, myself obviously
had most of the questions in terms of a lot of these dollars are spent and what does it really
go for. It says where it went but, is it things that we've spent totally or is it allocation to
other departments within the city or what is it really for?
Boyle: Charlie are you asking, these are bills that were paid in November. Are you asking
that Todd or staff or somebody advise you of this at the next meeting? Or at this time. I
mean these bills have come and gone.
Robbins: What I'II do is withdraw the comment.
Boyle: Thank you Charlie. We have a motion on the floor to approve the bills as amended
and a second.
Mason moved, Chmiel seconded to approve the Accounts P~able for the HRA as amended
regarding clarification of Check #057542 to Eastman Kodak in the amount of $5,272.50. All
voted in favor mad the motion carded.
Boyle: May I have a motion to adjourn tonighfs meeting.
Robbins: So moved.
Bohn: We have HRA resolutions.
Boyle: Oh, I'm sorry, resolutions. Any HRA resolutions? Why do we have that on there?
What is that for?
Gerhardt: It's usually HRA comments. I don't know...
Boyle: Any comments or resolutions?
Bohn: I have a comment. Are we going to hear about the pedestrian bridge at the next
meeting7
28
Housing and Redevelopment Authority - January 19, 1995
Gerhardt: The award of bid is in March so it will be a March meeting when we put that item
back on. What Pm expecting at the ne~t meeting though is a report from Strgar regarding
your request to review some of the intersections at Market and Great Plains. And Charlie is
just finishing that up right now in my office...so that will be one of your agenda items.
Bohn moved, Mason seconded to adjourn file meeting. All voted in favor and the motion
carried. The meeting was adjoume~
Submitted by Don Ashworth
Executive Director
Prepared by Nann Opheim
29
OITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO: Housing and Redev¢lopment Authority
FROM: Todd Gerhardt, Assistant Executive Director ~'
DATE: February 10, 1995
SUBJ: Consider Awarding Bids on the Demolition of Przymus and Pony Express
Buildings
When staff prepared the bid specifications for
be meeting on February 23, 1995. Thus,
Thursday, February 16, 1995. However,
results at Thursday night's meeting. If
bid results, we can schedule a special
retake
Again, staff will be presenting the
I have also attached the ' report that was
report, Braun highlights was found in both
monitoring be used ..W...h~'"-rcmoving this material Staff
for demolition. ':- :'"-':~"~
. !~"'~' '::~'~' ~ ..'..
ATFA~NT ~"%~'.-.:.....~
~: ' ~'.-'. :
project, we thought the liRA would
the bid opening for 10:00 a.m. on
be able to review and present the bid
they need more time to review the
on this item.
on both buildings. In the
s and that proper disposal and
this work in thc specification
1. Report from Braun
BRAUN'
INTERTEC
1345 Norlhland Drive
M~ndota Helghls, Minnesota 55120.1141
612.6838700 Fux: 683-8888
Engln~rs and ,.%lanrlsts Sewing
the Buil~ one Natural Environmonls'~
l:~-oJ~ No. CWMX-95-0025
Mr. Sc. oR Brink
BP, W, Inc.
Thr~her Square
700 South Third Street
Minneapolis, MN 55415
Dear Mr. Brink:
Asbestos Building Inspection nnd Hazardous Materials Survey for Former Pony Bar
· and Adjaceut Building at 421 W~st 78th Street in Chanhassen, Minnesota
This report provides the results of the hazardous materials survey conducted at the former
Pony Bar and adjacent building at 421 West 78th Street in Ch~nhassen, Minnesota. Braun
Intertcc Corporation (Brann Intcrtec) was authorized by you on Jarmary 23, 1995, to conduct
the survey. The scope of our services was ]tmited to:
conducting a room-to-room walk-through of each of the above-referenced buildings;
collecting and analyzing accessible suspect asbestos-containing building m~gerjals
(ACBM);
assessing the suspect materhls' condition, friability, accessibility, and potential for
disturbance;
estimating quantities of each suspect material present; and
documenting other potentially hazardous materials.
Refer to the Braun Intertec proposal dated hnuary 17, 1995 (CWMX-95-P004).
The survey was conducted on Ianuary 26, 1995.
Results
Asbestos Bulk Survey
Forty-eight (48) bulk samples were collected. The following is a summary of sample results.
02/06/95 12:39 '~'612 370 1375 BRW INC ~003/017
BRW, Inc.
Project bio.
Febmm:y 1, 199~
P~e :2
Pony Bar
· Linoleum with wood parquei paiiem contains 40 perce~ chrysotile (asbestos)
· Brown linoleum con~ains ~0 pea. ut chrysofllo
· Corrugated paper inmlation c0~n~ 50 percent chrysotfle
Black wallboard (near furnace) contAt.. 70 pe~ceut chrysotile
Roof flashing material co,,~ir,.~ 5 percent chrysoflle
421 Building
· Roof flashing material conl~ins 3 percent chrysotile
Popcorn ceiling texture com~ 2 percent chrysotffe
Linoleum countertop cont.{r,. 60 per~e~: chrysotilc
Flue packing m~t~ial contai~ 40 perce~ chrysotilo
, 9-inch by 9-inch floor tile and mastic contains 5 to 10 p~cent chrysoflle
· 12-inch by 12-inch floor file cO,,~h,s 3 perc~ chr}m~U'{c
Non-asbestos-containing materials:
Pony ]htr
· Sheetrock wall sysmm (co~i-s < 1 perceu~ ch'ysoU~e)
· Mastic from wood floor ~le
· Black tarry pipe va:ap (contain,. <11 percent chrysotile)
· P~ch malzdal on. wa~ hea~
· Wall~
· Cellini ~xmring
02/06/95 12:40 '/~612 370 1378 BRW INC ~004,'017
BRW, Inc.
Project No. CWMX-95-0025
February 1, 199!/
Page 3
· Ceiling tiles
Asphalt roofing pitch
Brown linoleum in the upper level
,121 Building
· Linoleum tile with parquet pa_~em
Sheetrock wall system
Ceiling tiles
· CeiJing pan~ls
· Floor linoleums
* EPA and OSH2 define asbestos-containing materials as materials which contain greater
than I percent a~bestos.
Refer to Table J which lists each area of the building, whe~er th~ mat~ials contain asbestos,
and an estimated amount of ACBM in each respective area. Table I also provides a condition
and hazard ratLng for each material based on subjective observation~ made by our
representatives. Table H lists thc sample number, location, description, and the percem a~d
type of asbestos materials of each sample.
Hazardous Materials
Potentially hazardous materials were found in the following areas of each building:
Pony Bar · Behind bar
· Northeast comer of main floor
· Basem~t
421 Building · .First floor
· Bast~nemt
02/06/95 12:40 ~g~612 370 1578 BRW INC ~005/017
BAW, Inc.
1=~ 1,
Refer to Table IH for the location, identh~Jc, atloD, chemical coz]teat, sad ~t'y of potentially
hazardo~ materials.
A ~l pipe associated with an underground fnel oH tauk was noted bc'yond the south wall of
the building near the back door. A fuel gage was noted in the basement of the building. The
gage indicated the maximum c3pacity of the tnnk was 1,000 ~allons. The gauge Indicated that
approximately 200 gallons of fuel remained In the .~nlr
Site Description
The Pony Bar is a two-story buildLqg located at Ihe intersection of Wc~t 78th Street and Great
Plains Boulevard in ChAflhassen, Mirmesota. The exterior construction of thc building is og
wood and stucco, The pitched l:g)ffJon of rite roof is covered with cedm' shingles. The fiat
portion of the roof is covered with asphalt and gravel.
The interior of the building is finished with paneling, wood, sheetrock ~md tiling wlfl~ plaster
ceilings.
The butldin~ houses storage space in the basement, a bar/restaurant on the first level and an
apartment unit on the second level.
The building adjaceat to the Pony Bar at 421 West 78th Street in _c~_=-t~,sen, Minnesota, is a
two-story building with a basement, The exterior construction is of cinder block and brick.
Thc interior is finished with sheetrock walls and sheetrock and suspended ceilings.
The basement level housed ~artm~nts and storag~ areas. The first floor houses offices and
the s~ond floor housed apamnent units.
A water well was noted south of the ,S21 building. The well was positioned between the south
· exterior wall of the buildln~ and the asphalt parking lot loca~ south of th~ buOdlng.
Methodology
Bulk Asbestos Samp in and Analysts
Bulk asbestos analysis was conducted in accor~_~nr~ with the Environmental Protection
Agency's (EPA) method, 40 CFR, Part 763, Ch.1, (7-1-87 edition) Subpart F, Appendix A.
Each sample was examined for homogeneity. If a sample contained separate layered
components, each layer was analyzed separa~y. Quality control ~n is available
upon request.
02/06/95 12:4! "~"612 370 ~378 BR~ INC ~008:'017
RRW,/.nc.
Project No. CWMX-95-0025
February 1, 1995
Page 5
Frs~,o,'dous Materials
Pot~mtially hazardous materials wea~ also documented as to location, type and quantity.
Discussion
Bulk Asbestos Survey
Asbestos-containing roofing materials and floor coverings were observed in both buildings
were noted to be in good condition and considered non.friable. Current state and federal
regulations identify floor tile, floor tile adhesive and roofing materials as materials whi~
would not release significant amounts of fibers when disturbed. Therefore, if these material
are in good condition, they need not be removed prior to building demolition unless the
material is subject to sanding, grinding or otherwise abrading as part of the demolition
project.
Friable or potentially friable asbestos-containing corrugated paper duct insulation
(approximately 4 square feet visible) and an asbestos-containing black reflective wall board
materi',g (approximately 16 square feet) were noted In tho Pony Bar building. In addition,
friable or potentially friable asbestos-containing popcorn-like ceiling texture (approximately
5,800 square feet) and flue packing material (approximately 1 square foot visible) were noted
in the 421 building.
Friable or potentially friable thermal systems, flue packing and surfacing materials ~ould be
removed from each building prior to the demolition of the building. These materials should
be removed in accordance with applicable state and federal regulations.
l~z~rdous M~teri~ts
The martials noted in the building Include paints, thilmers, stains, finishes, Insect spray,
cleaning materials, car care products and fluorescent light fixtures. All materials were in
well-sealed containers and no visual evidence of leaking or spillage was evident. Several
automobile tires and iron automotive parts were also noted on the site. The tire~, paints,
thinners, stains, finishes, insect spray, eleauing materials, ear care products and fluorescent
light fixtures should be removed from the site prior to the demolition of the buildings.
Ms. Carol Nelson of the Minnesota Pollution Control Agency (MPCA) was contacted for
information concerning this ta~k. Ms. Nelson indicated there were no tanks reg~tered with
the MPCA at 421 or 431 West 78th Street in Chanhassen, Minnesota.
The fuel oil 'tank should be removed or abandoned in accordance with applicable federal and
state regulations if it is not going to be used in the future.
12:42 ~'612 370 1378 ~ ~C ~007/017
02/06/95
Project No. CWMX-95-0025
Page 6
The Mlnnmota Geologic Survey (MGS) inaintslm a ltmit~ dstabaso of water w~ll records
called the Minn_~sota County Well Index (M~. Not all priva~ wells ar~ listed on that
database. Our ~eview of the MCWI d_.~___hase revzaled no docume=~io_ _n of water w61h on the
applicmble s~ate regulaIims.
Braun Intertec is sccr~lited by the National lnstim~ of Standata and Technology
National Voluntazy Laborai=~ Aearedltatkm Proliram (NVLAF) #1234 for selected test
methods for bulk asbestos Identification. This rttmrt does not cons.~...~te or imply product
certification, ap~wval or endor~ by hiST.
Asbestos bulk samples are reta/ned at our lnbo~ for 60 days. They are then disposed of
unless BRW, Inc. instructs otherwise.
This report is issued uud~r I~ems of our General Conditions (8/93). N you have any questions
or need further assistauce, pies.se call Bret Bergluad at (612) 683-8841.
Sincerely,
Bret D. B~
.~ff~.~- ·
Senior Elrvironmentsl Spedalis~
Attadlments:
Table I -- Asbestus Survey Resul~
Table 1I -- Bulk Asbestos ,a, uslytical R~uI~s
Tsble HI -- Mh~_ilsneous Poteugslly Hszszd0us Materials
02,"06,"9~ 12'42 '~'6~2 370 ~378 BRW INC ~008,'0~7
BRAUN'
INTERTEC
Table I.
Asbestos Survey Results
Client: BRW, Inc.
Location: Pony Bar and Adjacent Building; Chanhass~n, Minnesota
Dae of Survey: Sanuary 26, 1995
Project No. CWMX-95-O025
:..:,.x~..-'~:.-:-~-.'.:..;.'.:.:-~-:-'-:-'..,'..-....:.:..'.:.:-.'..-x.~...;.;.~- .'.:p.:~,:e:-,-...~..×..~:xv:-.-.,.:4~:j~.;-:,::..~-.:~,..to.~:x:,::tk ~4.:~.~..:5~o...'~e'4::y .~.~:i.:,t~F~.~.~e.x-~',-.:.'.::X-.. :...:..~.~.~.'..,;...:.~c.-~.'~.~.~ .e:i'~;ii~tt.'e~.~.:~"~ k~'-:~:~:.~;,x:.Y.x.'~:~,O.:;:.~ :..:~..~:..Ix.~ ~.~-G'-:.:+.
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.........
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lower lervel Shuirogc No Vg-(10i~OO~ Thraughout -- ND O
..................................
Lower level (rc,tr0om,) ~tea t,xtnr, No ~-00~.0o! 200 l~ .- ND o
~ bvd (n~.~m,) Soulpted texture 1% f~12.5-OO1 100 ~ -- KD 0
Lower loel (r=trooms) Llnol~an Y= 9g.002.~. 1OO
..........................
lh~net~ level Bls~k plpo wn~ No ~-002.~ 40 fl -- D 0
Ba~aenl. n~tt [un~ Wall ~ Yea 9~-0025-00~ 16
Baa,.me~ n~ ~ ~ duct ~ Yea ~-OO25-OO7 4 ~ -- D 4
...............................................
l~sarn~n~ nut ~uml~a ~ m~rli] on wnlir h41mr No 95-0025-009 3 t~ -- l~ 0
~==~at Soulj~d t=Gtt~ No ~X)2.,~-O01 250 ff -- KD 0
.... ----- ~._
Upper ~ 12' x 12' cellini rib 1% 9~I.4Xr2.~012 600 ~ --- ~,~ O
.............................................
UpI~ l~ci Bro~ ~ ('~ l'ioor) No 9~..00~- 140 fP -- ND 0
0~3A2.C
Upper ~ Cdl/~ ~ No 95-00~-012 100 t~ -- ND 0
..........
UM~ 1~1 ~ Yt, t~,~-~ 15 ~ -- ND 1
......................................
! ·
Roof Ro~ph~h Y..
.............................
~ ltoof flnshln[ No ~.OO25-~5 tOO I~ -- KD 0
. .
421 Buikling
. . .
Roof Roef pi~oh Ye, 9~)02,%018 2,400 f~ -- ~-D 1
, - · .·.
l~of . lk~f ~ 1~ 95-00/5-017 200 ~ -- .X'D 0
Ih~c~ Io~1 Po0c0ra cdUnz t~'turc Y#
......
l~e~ ke~l 12' x 12' fiooe tlb~ Y#
~0.A2,C
..................
Be~me.~ L-vel 9" x 9' floot' ~ Y~ ~ 150 1~ -- ND 1
~ ~ ~ 03IA,B,C
B~cmmt ~ (n~a~ bouom ~ ma4~nd Ym 95-OO2~0'~ I f~ -- ND 4
o~ stairs)
02/06/95 Z2:43 '~'612 370 1378 BRW ZNC ~009/017
T~ble I
No.
Pa~o
~.~;~_~':~ ............ : . , ~:~.'~:~. ~..<..:.~
............... ~..~ ...... ...~ ....... ..~.~ ~:~ .............. ~¥~ ~ .... .~.. _~ ~ ~ ~~ ~:~
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,
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,
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m = , , ~
~ -,. ~ . , ~ ... . · ..
02/06/9§ 12:44 ~1'612 370 1378 BR~ INC ~010/017
BRAUN'
INTERTEC
Table Ill. Miscellaneous Potentially Hazardous Mated~ls
Client: BRW, Inc.
Location: Pony Bar and Adjacent Building; Chnnhnssen, Minnesota
Date: lanuary 2~, 199f
Project No. CWMX-g5-0025
................. , . ~:~.~.:....,. .~.,.
~ -~...~ ~ .~ ~ ~"-,.~:~...
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Pony ~
~ ~o~ P~t ~ ~~m d~ 2 ~Hons
M~n ~or Moor off ~~m off 1 q~
M~ ~or F~
~n floor ~ ~ ~~ dis~ 2 qu~
i i iii ii ii i
~ ~or ~r ~ o~ P~l~m ~1~ 2 ~o~
~n ~r ln~ s~y In~~ 2
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.
i = ii i ,
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. .
_
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~s~ent level
, , ~,~ · q ,, ...... , . .
~llow mOO25b, fe, b
02,'06,'95 12:44 'g~612 370 1378 BRg INC ~011/017
02,'06/95 12:45 '~612 370 1378 BRaY T~'C l~1012,'017
v v - V, --:~.'-,-':.~., .~.~:...,.,, :~ ':":"".,.u~.: . · .,-'.~:.: ~=. .-~'~
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-
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02/06/95 12:46 ~g~$12 370 1578 BRW INC ~013/017
02,'06/~5 12:47 ~612 3?0 1378 BR~ I~C ~014/017
~ ~ :::::.:-x 4c.:'.:,".',
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02/06/95 12:~9 'g]'612 370 1378
02/06/'95 ~2'$0 '~6~2 $?0 ~$78 BRaY I~C ~0~6,'017
02/06/95 12:51 '{~'612 370 1378 BRW INC ~017/017
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 5.5317
(612) 937-1900 · FAX (612) 937-5739
MEMO~UM
TO:
FROM:
DATE:
SUBJ:
Housing and Redevelopment Authority
Todd Gerhardt, Assistant Executive Directo~e~
,ms
February 10, 1995
Update on TIF Legislature
This past week staff has had to scramble in
Holmes and Graven in trying to convince
his recently imxoduced TIF bill. As you may
$3,885,000 worth of tax increment bonds
Highway 101/Dakota/Highway 5
property, etc. Thc most significant part
above mentioned tax increment bonds
from selling bonds ~ February 1,
1995.
of lan
Ou~ bond
'Representative Tom Worhnan and
Ozment (from Rosemount) to modify
thc city/HRA is in thc process of selling
such as West 78th Street Detachment,
the city would not be able to sell the
in Mr. Ozment's bill prohibits anyone
has been scheduled for February 13,
The good news is that as of February 9,
specifically those ' have takea action
Attachment fi2). A big you should go out to
Graven, the City o.f..S~.~Pii'~ who is in the process of ~l]ing
and the City of
Ozmeat has modified his bill,
preparation for a bond sale (see
Workman, Holmes and
million of tax increment bonds,
from closing the deal on the
"'-~'::.':;~'~.~ ,.. ~
because it still prohibits thc HRA ~ al~[~[~lll~ll~l~ plan and the adding of
any new projects in the fumre. I/
ATFACHMENTS
le
Letter from Ron Batty dated February 1, 1995.
Memo dated February 9, 1995 from Dennis Ozment.
Attm-n~s at Law
ROBERT A. Al. SOP
RONALD IL BAI=fY
~ J. BtmUL
Jomq B. D~t~
l~tit¥ O. DOaMNS
· rEFANlg N. GALEY
CORalNE A. HF_.INE
JAMSm S. HOLM~
DAVm J.
Jotm R. LS~SON
W~LLINOTON H. ~W
Jo~ M. ~~
RO~T J.
HOLMES & GRAVEN
CHARTKRED
470 PIIbhury Centar, Minn~apdls, Mlntmmta ~402
(6ia) ~7.9~
Fa,'-Imii. {612) 337-~310
WRITER'S DIRECT DIAL
ROBERT C. LONG
t,&URA lC. MOLI,ZT
BARBARA L,. PORTWOOD
JAMES M. STROMMEN
JS~S J. 'l'nomo~, JL
LARRY Id. W~Tf~.n~
BONNIE L. WILKIN8
G&RY P. WINTER
DAYID L. GRAVEN
OF COUNSKL
ROBERT C. CARLSON
ROBgKf L~ DAVIDSON
T. JAY SAtMm
February 1, 1995
Todd Gerhardt
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Dear Todd:
Enclosed is a copy of TIF bill recently introduced in the Minnesota legislature by Representative
Ozment. Significantly, Representative Rest is a co-author. I am also sending a press release
which summarizes what the authors believe the bill would accomplish.
The proposed legislation would change the TIP Act in a number of ways. For example, it would
require school district approval for certain TIP districts. The bill would toughen the findings an
authority would have to make before deciding to use tax increment. It would also restrict the
use of TIP to relocate a business from elsewhere within Minnesota.
Perhaps the most significant change, however, would be in regard to TIP districts for which
certification was requested before May 1, 1990. These districts, which are exempt from a
number of the more serious restrictions imposed within the past few years, would be subject to
a provision which effectively eliminates their tax increment reserves. In essence, tax increment
revenue from such districts could only be used to pay bonds sold before February 1, 1995 or to
meet contractual obligations entered into before January 15, 1995. Since no new obligations
could be incurred, the district would have to be decerfified whenever current obligations were
satisfied. This would prohibit an authority from further amending a TIP plan to assist a new
project
It is not clear what chance this legislation has of passage. It's effects, however, could be serious,
especially for cities wishing to use their reserves from "pre-1990" TIF districts.
' y,
Ronald HTBatty V
RHB:ckr
RRB83241
BA405-2
. -
d
STME REPR
DENNIS OZHENT
PRESS RE LEAS E
mm ' ' -- I - II I __1__ II I
~itmtsm ileuse of~m · bom ~,Stm Ol~.e laii~ · Scl'ad, fiji. SSISS · 61~ · Fu: 612/2H-1949
_ _ I
Date:. January 22,1995
Contact: Dennis Ozment
Phone 612/29&4306
Fax: 612/296-3949
FOR IMMEDIATE RELEASE
'Ozment Fights Tax Increment Financing (TIF) Abuse
St. Paul. State Representative Dennis Ozment has introduced legislation in the Minnesota House of Representatives -
that will help prevent Tz~/new, went Finanr./ng(TIF ) abuse. ~11F is a pod economic development tool. TIF helps
csties encourage the private sector to build and redevelop property that would not be produdve without government
assistance," said Ozmenc "It is the continuinf abuse of TIF that must be stopped. TIF needs reform so tax dollars
cannot be used to subsidize the building of commercial structures and houses on clean, open, undeveloped land.u
It is Minnesota's education tax dollars that are being used by cities for economic deve~opmenc Tax Increment
Financing ( TIF ) was designed to develop industrial jobs, redevelop blifhted areas, and clean up contaminated soils.
'q'he benefits of TII: can be worth the investment" said Rep. Ozmenc "Unfortunately some Minnesota cities are now
using our educational dollars to compete with other Minnesota cities for economic development. That is TIF abuse!"
(MORE)
PAGE 2.
In a TIF district, the city captures most of the increased taxes collected on the newly developed property. School
districts, counties, existing business and residential properties carry the long term ~ sacrifices and burdens, lt' is this
collective investment that makes it possible to develop property that has no chance of otherwise being productive.
Under TIF. all Minnesota tax payers help communities provide this economic development incentive. Currently,
over I00 mtlllon dollars from Minnesota's education funds are heinE, used to
subsidize TIF districts.
"Unfortunately many decisions made to help local development are needlessly hurting K. 12 education funding for
Minnesota schools," Ozment said. "Restrictions need to be adopted to return Tax Increment Financing to a common
sense approach thac justifies TIF usage and will work to better enhance our children's future."
Rep. Ozment's "Restrictions on TIF" legislation includes the following provisions:
e School District approval is required for TIF Housing Districts.
4~ The TIF development must exceed the market value ol the site that would likely occur without TiF.
e TIlt plans must demonsr, rate that the TIF district will generate net benefits, aHer taking into
account the costs borne by the school, county, state and special taxing districts.
4, TIF cannot be used co relocate a business to another Minnesota site.
4~ TIF commercial development by small cities is restricted to those that are tax capacity poor.
e Decertify The TIF district as soon as the district's bonds and contracts are paid.
~, TIF revenues must be used only in the district that generated the increments.
e The annual TIF financial disclosure must be written in plain language and all financial
arrangements between cities and schools must also be disclosed.
(MORE)
P~E 3-
'These proposed TIF changes are urgently needed," continued Rep. Ozment. '~Legi~laton are also discussing how TIF
ca~ be improved beyond the legislation I have cur~tly drafted.'
Such discussions indude~
P~ide better TIF ov~ight. Accountability is now miuing and is the bi~t rea~n that TIF abuses have
occurred without repercussions to the abu~n.
Counties and ~:hools are requening more involvement in TIF decisions. When cities establish TIF di~tricu,
the school disuict's and county's services often incre~ while the TIi: development uses the tax doll,s that would
normally be theirs.
Minnesota laws and state policies protect open space, agricultural land and the farmers from development
p~sures known as suburban sprawl. Subsidized economic development often uses ~ dollars for the develop.'nent
of the same land Minnesota had been subsidizing to keep agricultural. Such conflicting ~tate policie~ must be
resolved.
Finally, TIF reform has the potential to help add~s the urban economic development needs and the
affordable housing concerns that the urban poor and :he suburban communities have been fighting about.
HOUSE OF RF2RESENTATIVES
Housz 147
bill .Pot an
1
4 m~l~ ~nneao~ 8tatuCeo IS04, seo~io~ 460.174,
6 t~ S: 46J.~76, .uMivisio~ 4b a~ 40~ 4Sg.1~63,
7 lu~v~s~o~
469.1~9, ~ a~l~ a ouMivia~oa.
lu~LvLiLofl ~2, LI. Mnded ~o read,
SuM. ~2. [~~C D~~
14 discrl~ ~%cb ~us~sca of any proJeo~, or ~r~lo~ o~ a
~L~Aon dLaCrLo~, i~n~ undergr~u4
distrL~C, or ~usL~ discria~,
20 (1) lc rill dLs~r~e ~r~, indu~ry, or
21 [r~ ~L~ ~eir ~racionl co ~~r
23 or'
25 ~ ~me o~ Chi
f.'
3.
3
4
ii
?
I
!
i'm
3.4
&S
3.4
1.'7
X!
20
23
24
26. altmratl~)n of the uethnd or other bXnd~ng legal nsuranaem £or
27 preservation of'the wt2Jnd a~e pro~Xded,
2J the proposed devo~nt o~ tim dLmtrAot h ~he ~si Xn~rmnt
30 ftnanctng plan must be consistent vAth the manAotpaXtty*m land
:33. Ull p]~JI adopted tn accordan~ vtth sectLons 473.8S1 to 471,872
32 and revAoved by the me~ropolLtin ~auncLX under oec~tou 473.17S,
33 Z£ t~e distract La 2ocated outstde o~ the Mtropo~ttaA area, t~e
34 proposed dt~re~pment o~ t~e dAetrtct mst be cosiAatent vAth the
3S muntctpaXt~y'o oumprebenstve mnoAetpaX p3,m~.
3S Sea. 3. Ittnnesota Statutes 1994, section 469.X74,
3
4
S
?
X3
17
la
19
22
26
3X
33
34
35
36
Subd. 21. [C~nZ~ nmAW.~ BOU~.] "Cr~lt e~noed
defined &n ~X~ 469,~763, suM~v~a~ ~, ~Lun~ ~ at %east
~ ~he ~to ~ A~a~e to ~ sufficient ~y~ ~e ~he
~2) f~r~r ~r~ ~ ~az ~rmRa (AS ~rA~ ~r~e
oF ~ra ~x Anar~R fAn~L~ dLRrlRm a~
~Ae issuer ~ b ~s~r2 Aa o~r ~e
~s ~easAble. '
see. 4. ~A~esoca 8~acuces 1~4, ~RA~
su~AvAsAon 3~ is ~end~ ~o read,
shall nsc ~r~A~y the oFAgAnal ne~ ~x ~icy o~ a Csx
Ancr~nt ~AMncln~ dh,race un,L1 the ~ Laor~ant ~A~naAn9
p~afl pr~n~ ~or t~t dLscr~cz ~a ~en a~r~
~nLaA~Aty Au ~ the dARrAct As X~ted. zt aa aut~r~ty
t~t pr~aen to es~A~ a ~ax Ano~mat f~ncA~ d~strAct
and the ~ni~i~lic~ are Mt the H~, the auCMrit~
co the nnLai~lLty Ln vhAch the d~scriat ii pr~sed to be
fA~n~Ang ~ ~ she nnLciMX~ M~ore ~ au~r~y ~y uss
eax thereat ~tnnctflg. ~e muniot~ltcy s~%l a~r~n ~he ~ax
Ancr~n~ ~tM~tng plan only a~ter a ~blto ~art~ Chervil
a~eer ~blts~ ~CA~ tn a nM~r ~ general oir~laCton tn
noti~ ~st Include a ~p of C~ ar~ ~ ~e dtatrict f~ ~tch
l~rmu~s My M ~llec~ a~, l~ W pro]eGO arts AKludes
addL~Ao~l area, a ~p o~ She pro~eo~ ar~ An
Ancrmncs my b ~nd~. ~ hearing My ~ ~ld ~tore or
a~er ~ha a~r~il or creaeAon o~ the ~o~t or LC My ~ htld
Aa ~uno~Aou vA~h a hearing' ~ awoke ~e pro~eo~, b~ore or
'.
!
1
4
5
?
12
~?
20
21
27
30
31
i
~m~~ ~otrLat, a re~X ~ rm~ dXs~rX~, ~ ,
dil~t~, I ~b ~ttM d/Itrt~,
dtltr/~s tf b ~~d ~mtrt~ Ls a ~~t d/ltr/~
or I r~ ~ rmtiM db~t~, ~ ~ ~ nprt~
of ~t~ 460.174, ou~v/at~
~ ~ ~blte ~ ~e aut~tty uuttX t~ d/strict ~m mn
rebuttal.
(3) t~t the pr~~ ~X~nt
~tni~ of t~ mniet~Ztty, ~d
~r ~leXy ~rough private
forlsmbXe ~uturo ~ ~fo~he~~~nt
ltnmneJug-~o-dmmed-neeessa~7 that
t~ site ,~t ~d r~bXy
Iff t~.~rket value qst~t~ to
d~X~~ after,,~tra~t~
~ t~lmnts ~or t~ m~ ~o~t~ oe ~ d~strt~
~raX ~n ~or ~ ~l~~ or re~u~nc
(4) t~t ~e ~ /Mrmn~ ftM~t~ ~ vt~ afford
mtoi~l/ty am a ~le, ~or
~ ~oJect by ~tvate
IS) t~t ~e ~ot~tty ~ts ~ M~ o% tax
/~r~t ~utt~ set %or~ An
3, ~ue (bi, tf a~Zt~Xe.
S~ott~m 4 4
3 dll.~ric~, o~!~T *-~/ng dlstr.~a~s~ I~ t~ s~,tef brewed.
8 ~he ~an ~ M d~ I~r~. mn ~ mnLo~LCy
~he au~rL~y ~rs~n~ Co aa~LvLn~ 4. M ~r~
~3 the uae o~ C~ incr~n~ ~~l~ a~ ~ ruo~ut~on of
~4 governing ~y ~LI ~ ~nclusive o~ ~ ~l~L~s ~he~e~n
IS o~ cae ~bllc ~ ~or ~
~6 ~)_ ~9 ~nCy ~udi~or ~y ~ ~r~ify .~o orlqL.~l neq tax
iCh~l dts~rl~t Lq ~ch t~ dtmtr~o~ ts X_~l~ t_~ ~Xther
23 o~ ~en or ~re n~ h~stng un_too or pr~~ ~lhlbtXttit~n or
24 r~d~eX~q~ of te~ or ~r9 extsttn~, h~uoe~pt~,
2S
__
27 ~ax t~-M~t ~t~net~ dis~rtec under_chts Mr~qra~ ~Xy. a~cer
28 ~Xdt~ 4 ~bZte_~rinq?on the ~eaCton vtCh poCt~__provtded
30 Sec. S. ~nfl~ota S~tucea 1994, liOtt~ 469,175,
32 Subd. S. [~ Dzs~~.] For ~1 tax t~r~nc
33 fi~netng dtstrt~s, vhe~r ~r~ced prtor ar subs~en~ ~o
34 Augus~ X~ 1979~ ~ or ~ore ~Xy ~ O~ ea~ year, the
35 s~:X auMX~ to the ~unty ~rd, the ~unCy audttor,
3S ~rd, the ~testoner oe revenue a~, t~ t~ I~rtty
!
sec~ton S s
-- .
3
3
4
5
6
?
!
10
i2
13
14
~5
16
16
Ag
21
26
3O
31
22
33
34
35
3S
other than the muni~ipi~it%, time 9avezning bod~ of~
m~~lik7, a ~rt o~ ~ mUtu ~ tM ~w~i~,
a~XL~o ~ LMr~t ~1~~ ~, ~ mX
of ~tst~n9 ~~ L~btmJ, ~e ~c o~ ~ d~otr~c's
__
aut~city d~ ~mr7 ahXX ~ ~bXL~ La a ~~r
e~lt~l~__9~ t~ M~O~ aRl~ltl~ o~ t~ d~zic~ dur~~ ~h~
~hXn and si~e ~nge~ .tHixy ~ers~Xe ~
uu~e .~x~n~ ~n~.
$uMivini~ 4b, is m~ to
~ ~L~ ~ ~rffmn~s du~r~ iu Q~se (2)
featio~ 6 6
3 femdLal a~tL~nj and (3) pay £or ~h~ adain~straCAve a~pensea of~
4 ~ authorLt7 ~~le Co ~ dLn~rL~_&~I~L~ ~e ~nk o~
9 bo. 7. ~~ S~uteo IS94. ~t~ 469.~7S,
~rt~ ~r~ ~ i~r~t ~r~ afl e~e ~~n~ dincriot
MY ~c ~ u~ to pr~ide l~r~ncs, l~, su~i~es,
14 griflca, iu~eref~ rate a~ldies, oF ~alatan~
~ (dec.e:m~ned on t~ ~si. o~ .~are ~age) are used ~or a
~e ~r~ae ot~er
~9 (~) the mnu~ac~ur~ or pr~uoclon
20 pro, roy, ~ud~ng proposing resulc~
2~ ~nd~t~on o~ ~e pr~rCyr
22 (2) nre~si~, e~orage, and d~scrlbution
22 ~rs~l~ pr~rCy, ~c~udLng reu~
30 1As~ An ~lau~s (1) ~o
3~ Cb) ~ ~vl~a~ ~he provis~o~ o~ ~Ls su~AvAsion,
d~s~rl~ uy M used ~o provLde ~ro~en~s, ~ns, subsLdLes,
34 graft,s, Lnteres~ ra~e subsidies, or asais~a~e Afl any ~ors for
3S up ~o S,OOO ~ce f~ o~ a~rc~a~ a~ reUl~ ~ac~At~es
P.7
'° e
,,
!
J
Section 7 7
!
·
,.
·
·
I
i.
·
o2/'j.7~5 [ns~gon ! zz/~ t~.oa:)
!
XO
X4
X$
Z!
20
~X
24
20
ot~;~-y~;~-;J~;--~-a-~,~:--~2;.%-&:-:,~.
__
_
aen ~r~m or rare M{~ ~ ,ta~e ~urm for ~
re--fly affal~le mu~t turf ~~ jo bU
~gfln/Ci~ o~ ~tuet~ H~ ~x n~~ In ~i~
,
~uMivisl.~ b, a~ tM. defi~tln Of ~latim in,~_~t~
~77A.0Xif Su~viOi~ 3. ~i~t~ tU ~CltY ~n
~hV uXue o~.oi2 ~ured u;
i~r~nt ~etng diagram, an ~t ~l ~o at Xmt ~ O~
or ~re ~nt oE, debt so~l~ ~ ~r~lt ~~ ~.
incr~ts ~d ~ pr~rtiH in ~ dXn~riot my ~ ~~,
~rMh a ~~nt ~ or ~~, ~ ~iv/c/es
proJe~ e~t to ~7, or B~re ~~t ~, deb~ eervLfl ~
~or ~ dtetrl~ tMt are e~~ ~ ~ n~r
469,176, nM~vlui~ 4h, ~r~:~ {b), my b ~t~ ~irst
f
i
JPr~ 38 '95 11:12] CITY OF ~
,
[a,t"v2eo~ ] xx/p,x ~S-~O83
4 as de~l~ in ~i~ 4G9~174, lu~ivlll~
S ~
9 mu~ivim~ 4, ia m~ to
~o suM. 4. [~~~ ~~r:~zn,] (8)
~ ~LnnL~ vL~h ~e sixth ~lr ~o~L~ turn,fLeXLon of
~2 dLecric~, K ~ ~r~nc of ~ revenun
~3 'incrmn~s ~ld by p~r~iea Ln ~ district
~4 ~he e~L~ur~ ~ru~ u~er ou~vLs~on 3 ms~ M used ou~y
IS ~o
17 ~ra6ra~s (a), c~use (2), and
~a (2) ~racts, aa defined in au~/visl~ 3, ~ragraph
~ cliuses (3) ~ (4)J or
20 (3) or~1~ e~nc~ ~ to vbL~ ~he r~enues derL~d
21 fr~ c~ /nnrmnts are ~e~ed, bu~ ~ly Co
22 revenues ~ ~e distric~ for vhi~ tho
20 (3) ~4 (4), ~ dim~ria~ ~t ~ b~er~lflM
30 Cu Lncr~n~ dLs~rged. ·
3X S.~. lO. ~.sou Statutes 1994. leo~iofl 469.177,
32 subdivision ~0. L, mflded to ~,adt
34 ~rov~sl~ o~ tala .uMlviSlOU a~ly to ~ l~:mnc ~l~noing
3S districts a~ praisers gar ~/eh cortl[i~Lon vas re.ended
3a M~ore h~ 1, lj88, the ire lassoed in a a~l distrio~ in
./
· .. -'
·
..
·
.i
·
·
i
3
t
I
?
I
·
3.3
~3
3o
33
33
33
'3~
35
3~
0~7~15 [I~2II ] ~ gI~ZOe3 ..
~ I~ ~trA~ an
rate ~r b z~rl,
~JoriCy ~e of ~ g~rni~
i~l h~, ~ authorAty
~ ~ i~reaIe An ~e z~z c~ ra~e ~r'~ referee. -
Iii b treat~ ~ the I~l ~itrA~
pro~id~ ~ ~e rmnues
.
i
a~Zy to proJecu for
m, m~ after ~t x,
(dj ~e~~X ~ItrAct
Mr~r~ fbi, e~e (2~.~.I~/~r
~ffL~ ~LI ~omtA~ to t~ IsILonIr ~~aue ~n
rlt.
~Z~.] Iai ~.IUMlViaia
Br~_ar~a for ~ iht
~_ male ~f~e or after
OX~-?/OS riw~fc:m ] xx/wt 95-ZOB3
~,.%~ d~a~r~ a~ ~ Nr~ Lsaued
4 XOOS, or ~ issu~ ~9 re~pd
~q otMrv~u ~oabXe~luLt
~) a~ ~he ~s~a~ng_ ~nda_~ve mn ~d
(2) a~ the ~on~racC~ O~igiCLg~ ~ve ~en satisfied, or
20 vL~A ~ntere~ on c~q invogc~_9~ar~ ~e~un~r v~ sat~afy t~,
2~ Sea, Z2. [~~~ ~,]
22 Sections 5 ~o ~ are q~fec~ve
22 e~cc~ne and a~y ~o a~l ~ax lncF~n
24 r~ard~els o~ vhen C.~ reaueat ~or
·
i
·
· .
FEB 10'95 10:38 P~2.005 P.02
Dmmi
Mlnn ota
House of
Representatives
Rep. Arm ~tmst _ ~/
De~n~s Onnen~~ '
199.5
semi,on cr~ the XJ.rmes~ log/slaturo.
·
soc~~ 11 o£ H.F. :L47, ns int~odu~, l~)vides-~ ~ax JJ~mlm~
~evermem ~or all dist~/c~m ~ ~ oe~L£t~atlon van ~mauented
Hay 1, lo00, way be used on1¥ ~o pay l~ce-extm~lng bonds and
~aotm and ~o dsom~iL~ ~ dtat3~tctm. ~ legisli~lo~ z'e~Zutz'em
bondg to baVo been 18mumd and BOld before 1~~ 1, 1995-or
for mervtoeo, GT ~LmLXa~ 8ol~L~t~. This aiendBm~ La J3~emled ~o
allow munlolimlLtAes ~t hod ~ ~u ~ltanae on
~o /aaue bonds or otJM~v~se 1%ual l~O:~oo~s befcmo
ln~F~~on'~ IX~g~ed v/~.~ ~d~Mt VhLle H.F. 1.47
D0/l
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
Housing and Redevelopment Authority
Todd Gerhardt, Assistant Executive Director
DATE:
SUBJ:
February 10, 1995
Justi~ation for HRA Assimace in Purchasing City Hall Copier
Staff was asked at our last HRA meeting to
purchasing of the City Hall copier. I
highlighting this item during our 1995
their 1995 budget, staff included the need
copier was based on the amount of down
The City Council agreed with staff to
in lease payments over 4 years. Staff
us a new copier with mom fcamre~
assisting towards this lease is that
allocated to the HRA for the
debt analysis, etc. Based on ~% allocation, staff
the bill to Easmmn Kodak.~~any for $5,272.50.
~ .. - '- ~ ":'. ;.',~"~"
ATI'ACHMENT
flew
felt that at
HRA packets, TIF
why the HRA should assist with the
like to apologize to the HR for not
While working with thc City Council on
for City HaIL The need for the new
were occurdn.' g on the present copier.
would cost approximately $60,000
a lease arrangement that would give
Staff's justification to HRA for
($6,000) of the cost sho-]d be
development proposals, budget,
that the HRA approve
Ii
Accounts paC..dated 1/9/95.
CHANHASSEN H.R.A.
CHECK #
AMOUNT
ze'.~e
057543
5 ~ 272.50
CCOUN TS PAYABLE 0 -09-`95 PAGE Z --1
C L A I M A N T ............ ~'U n-~-'~-~' ~ ......................................
' .... ~"- ~~e ~.'; ....... ~*~f- ~ ~¥~'- '
~TY ~ .............. ~ ....... ~
EASTMAN KODAK COMPANY OFFICE EQ~[~M~N? ....... ~ -- ..
.... ~O:~EE~-fA~-pu~-~SE$-- '~..~
, TQ.D_~_G.~E~ .ARDT .............. _T .P~VEL_& _TRAINING ..........
057544
4,575.52 HOLMES & GRAVEN
9,8'95.00 CHECKS WRITTEN
FEES, SERVICE
CPLqNHASSEN H.R.A. A C C O U N T S
CHECK # A M O U N T C L A I M A N T
057339
057340
' D5734[ '
057342
P A'Y'A B L E 12-27-`94
PURPOSE
. .
PAGE
. .
~,2`98.32 CAMPBELL, KNUTSON FEES, LEGAL
384.75 HOZSINGTON KOEGLER GROUP FEES, SERVICE
['20--5~-----STRGAR-ROSGOE-FAU$CH-ZNC~ FEES,-$ERVZCE .......
563.[2 WILCOX PAPER CO. $.UPPLZES, OFFICE
4 2,366.77
AND-SALES TAX"ON-PURCHASES ..........
CHECKS WRITTEN
CHANHASSEN H.R.A.
CHECK # A H O U N T
049538 85.81
049546 4,400.00
2 4,485.81
ACCOUNTS PAYABLE 12-12-94 PAGE
CLAIMANT PURPOSE
BYERLY'S TRAVEL & TRAINING
RICHARD ANDERSEN V/~ REFUNDS/REIMBURSEMENTS
NECESSARY EXPENDITURES SINCE LAST COUNCIL MEETING
CHANHASSEN H.R.A.
CHECK #
057186
057187
057188
057189
AMOUNT
24.09
513.24
2,000.00
92.82
4
TOTAL OF
ACCOUNTS PAYABLE 12-12-94 PAGE
CLAIMANT PURPOSE
DONALD ASHWORTH
CAMPBELL, KNUTSON
DECISION RESOURCES LTD
TODD GERHARDT
2,630.15
6 CHECKS TOTAL
CHECKS WRITTEN
7,115.96
TRAVEL & TRAINING
FEES, LEGAL
FEES, SERVICE
TRAVEL & TRAINING
AND-MILEAGE
CHANHASSEN H.R.A.
A C C 0 U N T S P A Y A B L E 01-23-95 PAGE I
CHECK #
AMOUNT
CLAIMANT
PURPOSE
057717
.... 3p_~.... 2. .5_--_ _.H. gI__SI_N~.T.O_N. KOEG. LER .G.R__O_U..P_ _ .F. EE_S_, __S_ERV_]:.C.E .............
057718
202.35 SAARI & FORRAI
PROMOTIONAL EXPENSE
58S.60 CHE'-C~S-'~RITYEN ....................
~ANH~M~EN H.R.A. A C C O U N T S P A Y A B L E ~-1~-95 P~
AMOUNT CLAIMANT PURPOSE
~8~.25 HOISlNGTON KI]EBLEB 6ROiJP FEES. ~ERVICE
~8~.25 .NE_r'E___~BAR_ Y EXPENDITtJRE~ SINCE LAST ClIJN~IL MEETIN~
CI-Led~dRGSENH.R.A.
AMOUNT
A C C O U N T S P A Y A S L E ~1~95 P~
CLAIMANT PURPOSE
0~01:3 451.88 C.qMI~N~LL. KNU'r~oN FEES. 8E]RVICE:
058024 7~.00 ~ & 8RAVEN
2 1~207.88 CH~CKS MRITTEN
C~.H.R.A. A C C O U N T 8 P A Y A S L E 02-1~-95 PABE
·
CHECK # A M O U N T C L A ! M A N T p U R P O S E
057841 18 · 48
057G4,~ c~. ~
0~71343 1,705 · 45
057844 17~ · O0
4 1,908.49
TOTAL. OF ~ Ci-EIi3<S TOTAL
ADMINISTRATIVE SECTION
RUESELL HOR~CH
EXECUTIVE DIRECTOR
RIDGEDALE BRANCH YMCA
12301 RIDGEDALE DRIVE
MINNETONKA, MN E~343
(612) 644-7708
January 19, 1995
,,
)e
Todd Gerhardt
Assistant City Manager
CiL¥ of Chanhassen
690 Coulter Drive
P. O. Box 147
Chanhassen, Minnesota 55317
Dear Todd:
Thank you for meeting with Sue Erickson and myself last
Wednesday.
It appears that there may be a number of very good
opportunities that deserve further discussiion.
Thanks again.
Sincerely,
'..?~--~.~ ~ .~,~
Russ Horsch
Executive Director
RH :mai
)e
)e
)e
YOUNG MEN'S CHRISTIAN ASSOCIATION OF METROPOLITAN MINNEAPOLIS
Dunbar Development Corporation
January 23, 1995
Mr. Don Ashworth
City Manager
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, t~ 55317
Re. Senior Development
Dear Don:
As we discussed during our meeting last Thursday, enclosed please find a
copy of the "Development Team" list that was sent to Julie Frick.
Sincerely,
Carole Kron
Dunbar Development Corporation
enc
15 North 12th Street Minneapolis, ~ 55403 (612) 341-0005 FAX (612) 341-0327
CHANHASSEN
DEVELOPMENT TEAM
ORGANIZATION
RESPONSIBLE PERSON
FUNCTION
Carver lIRA Julie Frick Owner of Project & Issuer of Bonds
Chanhassen HRA Don Ashworth
Dunbar Development Corporation Frank Dunbar, Carole Kron Project Coordinator
Miller Hanson Westerbeck Berger Larry Westerbeck, Wilt Berger Design Architect
,4iiler & Schroeder Financial, Inc. Dennis Balyeat, Laura Ekholm Underwriter - structure financing and
sell Bonds
Springsted Gary Fields CPA/Financial Advisor
First Trust Cindy Schroer Trustee - represents Bond buyers
GME Bill Kwasny Environmental Review and Soil
Borings
To Be Determined Contractor - bonded and insured
(Sub-contractors locally bid)
Great Lakes Management Mike Pagh Marketing and Management
Attorneys:
Holmes & Graven 'Barbara Portwood Bond Counsel - issues opinion that
bonds are tax-exempt
Faegre & Benson Kent Richey Underwriter Counsel - represents
Underwriter
Rosenthal, Rondoni & MacMillian, Frank Rondoni :DDC Counsel - Development
Ltd. contracts (Project Coordinator,
Architectural, Construction)
Hedlund Engineering Services Surveyor - boundary and topographic
survey of site for construction &
financing
Empire Title Bob Gleason
Title Company - reimburses bond
proceeds and collects lien waivers;
provides Title Insurance Coordinate
Real Estate Closing
F 'JlO,t' .~'.C -~ ROI. I:'~i,t'l I A N I')I':VI
Ridgedale YMCA and The City of Chanhassen
1-18-95 Meeting Notes
~ -/
From.'
Present:
Fred Hoisington
Russ Horsch, Sue Erickson, Todd Gerhardt, Todd Hoffinan,
Fred Hoising~n.
I began by explaining the convergence of int~mmts that may be shared by the YMCA and
the City of Chan_hassen given that Chanhass~ may be interested in an activity center,
and the YMCA may be interested in expanding its programming to the City of
Russ Horsch and Sue Erickson descn2md some of the programs offered by the Ridgedale
YMCA and those that specifically apply to the City of Charuhassem Of note, programs
that seem to have a good fit with the City include: youth in government, leadership
empowerment, youth outreach, before-and-after daycare, and aquatic and fitness
programming.
Todd Gerhardt explained that the City does not expect the YMCA to fund a facility in
Chanhasseru He went on to desm~ the small initial community center concept that will
be embodied in the new elementary school along Highway 5. He indicated an interest
in having the YMCA involved in programming for the facility.
Todd Hoffrnan described the relationship between the elementary school facility and a
possible future community or activity center and indicated a wiJlirtgrtess to share such
a future facility with the YMCA. Fred Hoisington asked if the YMCA would be in a
position to fund some part of the capital cost of such a facility over the next three years.
Russ Horsch indicated that they would not. Regarding a longer term capital
commitment, Russ felt the chances would be much better.
Whether or not the YMCA is able to participate in the cost of construction, they will
definitely be interested in the cooperative programming of some of the space,
particularly relat~i to the above programs. It was suggested that if an adequately sized
site can be found, we might think in terms of a YMCA, recreation center, senior center,
and health medicine facility, as an integrated complex that may also be shared and used
by the school district.
It was generally agreed that there be further meetings to discuss joint programming
efforts. The next meeting was set for February 9 at 9:00 A.M. at the Ridgedale YMCA,
which meeting will be attended by Todd Hoffman and Todd Gerhardt.