EDA 1994 02 24FILE COPY
AGENDA
HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, FEBRUARY 24, 1994, 7:30 P.M.
CHANHASSEN CITY HALL, 690 COULTER DRIVE
CALL TO ORD .ER
..APPROVAL OF MINUTES
1. Approval of January 13, 1994 Minutes.
VISOR PRF~ENTATIONS
Anyone wishing to speak to the HRA may do so at this time.
NEW BUSINESS
2. Consider Acquisition of Land Next to the Chanhass~ Inn from Don McCarville.
3. Consider Approval of Modification No. 13 to the Tax Increment Financing Plan.
4. Consider Changing March Meeting Date.
5. Consider Award of Bid for Demolition of the Apple Valley Red-E-Mix Plant.
6. Consider Terms of Lease Agreement with Russ Pauly, Pauiy's Bar.
7. Approval of Bills.
HRA PRF_~ENTATIONS
ADJOURNMENT
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
DATE:
SUBJ:
Housing and Redevelopment Authority
Todd Gerhardt, Assistant Executive Director
February 18, 1994
Consider Term of ~ Agreement with Russ Pauly, Pauly's Bar
Staff was directed to meet with Russ Pauly to di~uss th~ possible lease umns in extending the
operation of Pauly's Bar for one year. In meeting with Mr. Pauly, staff felt it was important to
get a professional opinion regarding rental rates for retail space in Chanhassen. In discussion
with Mr. Pauly, we both agreed that Roman Roos would be a fair candidate to assist in this
process.
Staff met with both Mr. Pauly and Mr. Roos on February 16, 1994 to review the possible terms
and conditions of the lease. Mr. Roos exp~ed that the market rate rents for Chanhassen for
..
a triple net lease range from $6.00 for older retail space up to $10.00 for some of the new space
in town. Mr. Pauly agreed with Mr. Roos on these price ranges; however, he felt that running
a bar is different because of having to pay for a liquor license., rnain~ce costs for thc larger
parking area, taking on the responsibility of maintenance of'a 25+ year old building, etc.
· .
·
With this in mind, Mr. Roos provided a range between $4.75 t~ $6.00 per square foot plus taxes,
insurance, parking lot mainteaance, building maint~mce,-and all utilities i.e. gas, water, electric,
sewer, garbage, cable tv, etc. (see ~ #1).' StaE.~.wi.th Mr..R.oos and.. recommends
that the HRA select a rate somewhere between $4.75 and $6.00 per sq. f-c 'i lave:also informed
Mr. Pauly that he may address tl~ lIRA on Thursday night to discuss .his'reasons why the rate
should be lower than the proposed ram presenl~l by Mr. Roos. ' '- .... ::"'
Attachment
·
-.. .
1. Lett~ from Ronnm Roos d~ted F~ruar7 17, 1994.
February 17, 1994
Eden Prairie Office
16395 Wagner Way
F. den Prairie, MN 55344
b12/9~4-5400
Fax 612/934-0287
Mr. Todd Gerhardt
Assistant City Manager
City of Chanhassen
P.O. Box 147
Chanhassen, Minnesota
RE: Rates for Retail Leased Space
Dear Todd:
You had asked me to be present at a meeting between yourself and Russ Pauly to
discuss the leasing market in Chanhassen for retail space and the range of leasing
rates. This is a summary of those discussions.
Currently, Chanhassen has little or no retail space available for any new business to
lease. The last viable location was the new Market Square project and It is fully
leased. Because of this lack of space, it is a fact that any available space could be
rented very quickly, especially if the rates were reduced below the market.
A review of the lease rates in Chanhassen reveal a nominal triple net range of $6.00
to $10.00 per square foot per year. I have leased property at both ends of this range
with the rate predicated on many factors such as the age of building, location, traffic
count, parking, interior condition, length of lease, and the needs of the Lessee and
Lessor. To this, of course, are the added costs of CAM or common area
maintenance, insurance and taxes, all generally paid by the Lessee or Tenant on a
prorate basis.
In the case of Pauly's, we are looking at approximately 6000 square feet of space that
they would continue renting and Chanhassen would like to keep occupied eliminating
unnecessary costs, such as maintenance, utilities and taxes prior to the actual need to
tear down the facility for redevelopment. Knowing this will occur in the future,
continued leasing by Pauly's eliminates these costs and therefore this lease has value
to the City by being in place. In like manner, Pauly's has an ongoing business which
can continue for the immediate future and therefore the facility has value to them. It is
these two values that can be used to adjust a fair market rate to a level fair to both
parties.
Page #2
Pauly's/Chanhassen
I am suggesting that the base market rate for the Pauly's facility is at least $6.00 per
square foot. Since Russ will maintain the building, I suggest the annual rent mia be
reduced by 3% as a management fee. If Pauly was to be repla~:l with another
tenant, there is the probability of paying a $5,~.00 leasing cornmission. This cost
along with minor concessions for convenience, goodwill, and continuity bring the base
rent down to $4.75 per square foot or $28,500.00 annual rent. This rate and its
method of adjustment should be extremely fair to Pauly's and the Ctty and should be
acceptable to both.
I am open to any additional questions that the HRA, you or Russ may have. I
sincerely hope an amenable solution Is reached.
Sincerely,
Bumet Realty
RR/pr
cc: Russ Pauly
CHANHA$SEN H. R . A .
CHECK # A Ft O.U N T
053972 38.47
053973 4,038.07
053974 3,584.90
053975 458.31
4 8,119.75
TOTAL OF 5 CHECKS TOTAL
A C C O U N T B P A Y A B L E 02-14-84 PAGE
CL A I FIA N T PURPOSE
TODD ~ERHARDT
TRAVEL & TRA I N I N~
HOI S INGTON KOE~L. ER {~IOUP FEES, SERVICE
KBW KALAHAZOO, INC
PARKSIDE PRINTING,
GHECK8 WRITTEN
B,124.75
USE TAX PAYABLE
AND-PROHOTIONAL EXPENSE
AND-SALES TAX ON PURCHASES
INC. SUPPLIES, OFFICE
AND-SALES TAX ON PURCHASES
CHANHA$SEN H.R.A. A C C O'U N T B P A Y A 8 L E 02-14-94
CHECK ~ A H 0 U N T C L A I Fi A N T P U R P 0 8 E
054153 807.64 BRW, INC. FEES, SERVICE
054154 1,202.93 BARTON A$CHFiAN AS~X~. FEES, SERVICE
054155 3,015.46 HOI$1NQTON KOEQLER GROUP FEES, SERVICE
054156 838.50 HOLNES & GRAVEN FEES, SERVICE
054157 3,167.23 J E A ARCHITECTS FEES, SERVICE
5 9,031.78 CHECKS WRITTEN
PAGE 1
CHANHASSEN H.R.A.
CHECK ~ A H 0 U N T
ACCOUNTS PAYABLE 02-14-94
CLA I HANT PURPOSE
PAGE 1
048928
5.00
5.00
CHAN CHAHBER OF CONNEROE TRAVEL & TRAINING
NECESSARY EXPENDITURES $1~ LABT COUNCIL HEETINQ
.CHANHASSEN H. R. A.
CHECK # A I10 U N T
053812 25.91
053813 150.00
2 175.91
ACCOUNTS PAYABLE 01-24-94 PAGE
C L A I FI A N T PURPOSE
DONALD ASI'MORTH
PUBLICORP,
CHECKS WRITTEN
TRAVEL & TRAININ~
TRAVEL & TRAINING
CHANHASSEN H.R.A.
CHECK
053877
053871
053879
053880
AHOUNT
568.87
74.00
2,559.12
82. O8
3,214, OB
ACCOUNTB
CLA I NANT
CAI"IPBELL, KNUTION
COHPUTER BERV I
HO I I I N~I'ON KOE~.ER
DEBRA K I ND
GNECK8 WR I TTEN
P A Y A B L E 01-24-94 PAGE 1
.
PURPOSE
.FEES, LEGAL
REP.& PAINT.- EQUIPHENT
FEEl, SERVICE
PROflOTIONAL EXPENSE
ADMINISTRATIVE SECTION
Site Improvements for the Hanus Building
Chanhassen, Minnesota
PROPOSED CONSTRUCTION
15 December 1993
..
Submitted by Buck Blacktop, Inc.
SCHEDULE
Removals, Excavation m . ...........
StormSewer _~mmm m 1 m m
Retaininl~Wal,s m _..11 m m
Biturnino. B.e Cou. m m ~ m
,__..~_ _ - _____ ~
Irrigation m mi) ~ m
rm~ ........................... ?~_.?_.. ~._.. [ ...... ~ ...........
Bituminous Wear Course
~~m~n,~n,~ m / II/ m ~r
Bituminous Wear Course and Pavement Markings will be performed on two days in the period from July 15 to July 29.
DE/I/lOc, IT/oM P~~¢T'--
,.:
I
.: t~'t"- Bib cdAbK,
..': STA i~>T'
D6~ocll"loi,,l
JAkl. zff, I':'/'~,-/
:JAN. z'7~ I'=/'~'-/
JA~. 2_.8,
F~15. ID,
FEE,.
February 10, 1994
Mr. Gary Kirt
Bell Mortgage
1000 Shelard Parkway, Suite 500
St. Louis Park, MN 55426
Re: Hanus Building Roof
At the Chanhassen HRA meeting of January 20, 1994, I reported that you needed
additional time to decide whether or not you would be interested in replacing the
existing roof on the Hanus building as an enticement for the HRA to build the new
standing-seam roof. As you know, it is the architect's opinion that the new roof
should not be built unless the existing roof is replaced. It is also his opinion, after
having evaluated many different alternatives, that the proposed standing-seam roof
is the least expensive roof system and that the large number of penetrations need
not be a problem given state-of-the-art construction materials.
I also posed the idea of a low interest loan for replacement of the existing roof and it
was the opinion of the HRA that it does not wish to act as a banker for such projects.
Likewise, it is the HRA's position that it is not interested in refinancing the current
debt at a lower interest rate as an incentive to replace the existing roof. Essentially,
the I-IRA decided that it would authorize the taking of bids for the standing-seam
roof as early as February 17 if you agree to replace the existing roof with no
involvement by the HRA in its financing. The outside date for your decision
should be March 10, 1994 so that the I-IRA can act at its March 17 regular meeting.
The HRA is willing to spend a considerable sum of additional money to add a
standing-seam roof to the Hanus building. You will obviously be the benefactor of
that improvement and the existing roof needs to be replaced anyway. It is only a
matter of whether you replace it now or you replace it later. H you replace it now,
you get a standing-seam roof to boot. If not, the only changes that will be made to
the building include painting and metal canopies. Of course, the parking lot and
landscaping improvements will be constructed in any case.
I, herewith, provide you with a summary of what you will get for the $100,000
additional dollars you will spend to repurchase the building:
land Use / Environmenttl" Planning / IX'sign
-'3(~i Metro Boul~'ard Suite 525 · Minneapolis, Minnesota 55439" (612) 835-9960 · Fax: (612) 83%3160
G. Kirt Letter
February 10, 1994
Page 2
(~0sts incurr~,~cl or committal to date l~y ~e ~
Construction Documents/Planning Fees .................. .$ 28,690
Construction Services Fees ............................................... 10,380
Construction:
Parking Lot (Bid) ............................................................... 102,640 *
Building (estimate)
·Doors
· Paint
· Signs (wall)
· Roof ................................................................................ 148,550
* Excluding $58,480 worth of improvements which benefit
adjacent HRA properties.
Freestanding signage costs (estimated at $15,000) have not yet been allocated but as
we have indicated, the HRA may be willing to entertain a 50:50 cost sharing
arrangement. If you are interested in such a proposal please let us know. If not, we
will drop the freestanding signs out of the program.
Unfortunately, Gary, we are once again approaching a critical deadline. We need to
know where you stand on these issues so that we can proceed with site and building
improvements accordingly. As indicated, the parking lot will be under cons~~
by May 1.7.
Please let us know no later than March 10 how you want the HRA to proceed. If you
have any questions in the meantime, please call.
Sincerely,
Fred L Hoisington, AICP
Planning Consultant
FLH/glh
cc: Todd Gerhardt
612-855-~160 HOISINGTON KOEGLER
223 P02
JAN 18 '94
11:~1
MEMO~NDUM
Date: January 18, 1994
Fred Hoisir~on
Todd Gerhardt and Paul Krauss
Subject.
Telephone Discussion w/Diane Harberts re: Mortenson Site
i _ _ I i i Ii I
Diane Harberts called me on Monday, lanuary 17, 1994 to indicate that the Southwest
~letro Transit Commission is unable to make a commitment on a transit hub along
Highway 5 at this time. The Commission is puttir~ a new service design in effect on
March 14, 1994. Until they see how the service works, they will not be able to make a
commitment on this site.
In the meantime, they are completing a transit hub impact study (Lasher), which study
will likely not be completed until June of 1994. Re_~,stically, they will be unable to make
a/inancial commitment to any transit hub in Chanhassen until that study is completed.
While Diane cannot make a commitment either way at this time, she understands that
the HRA must proceed with the acquisition of property/or the pedestrian bridge/rom
M. A, Mortenson. She feels one of the drawbacks of the Mortenson site is access. She
pre/ers both access in and out to Highway 5.
Diane's preference at this time seems to be to develop a transit hub at Hi, ways 212 and
101. /;he feels that location will better serve the f~ture populations of O'.anhassen and
Chaska. That land has already been of/idally mapped ,nd Mn~T will likely provide
the land at no cost to SMTC. It also of/ers the Commission ~ opportunity to control
the development of the transit hub in a fashion similar to the proposed Eden Prairie
faclity.
Diane/urther stated that i/this site is selected/or a transit hub, SMTC and the RTB will
be responsible for its eventual acquisition. While it would be highly desirable to have
a transit hub at this location, there is no immediate need/or the HRA to commit dollars
to such. I encouraged Diane to continue to consider this ~s the site/or i future transit
hub.
BD
NO~.' "~ ,)1993
November 29 1993
Paul City
KrauSshreeder~<
Michael Sc
Transit Hub/LegioA Site Development; meeting with Diane ~, Southwest Metro
Transit
·
The concept site plan wns revised before meeting with Southwest Metro to provide more .pi)tiring
on the "transit hub" side of the site, and to show a pomntlal for additional parking if a variance to
the Highway 5 design standards is granted. A revised copy is attached.
Fred Hoisington and I met with Diane Harlots of Southwe~ Metro Transit this morning to review
the concept for the Transit Hub/Legion Site development. While she could not commit to a transit
facRity on this site, she did have several comments that would make the concept more wodc~le for
Southwest Metro. Her comments regarding this concept are a~ follows:
Southwest Metro is looking for a facility to ~modate 400 to 500 cars. They may not
require all of this to occur on a single site, but a system analysis (to be completed by early
January) will determine if this site could ac4~mmodate their tleeds with less parking.
Diane indicated that they will need to maintain visibility to the site, and that the landscaping
along Lake Drive would have to be shorter to permit surveillance of the site from the street.
They may want to develop this area with a landsca~ tr~un~nt that is similar to their transit
facility in Chnska, with fences and low landscaping. We pointed out that this may be in
conflict with the proposed Highway 5 Design stan~.
Southwest Metro would like a "slip lane," or acce~ directly to the site from enstbou~d
Highway 5. We will investigate to see if this is possible, given grades between Highway 5
and the transit hub area. The extension of Lake Drive between Great Plains Boulevard and
Market Boulevard, creating a new route from the downtown transit facility, may precl~ the
need for a s~ip lane.
Diane would like to have the mnxJmum parking possible shown, even if a variance would be
required. In the revised concept plan, the 48 spaces along Lakg Drive would be shown ns n
part of the total from the start.
This site may need to acco~te layover for large buses, although Southwest Metro is
looking at options for a layover facility.
Pedestrian access to the transit hub site from the neighborhoods to the south should be
shown. Diane would also like to show a location for a "mini-~op" for small btu~ at the
south side of the,, site. The ,mini-stop. . would function ms a stop for a local ctrculator,'
providing more door-to-door' service tn downtown ~. The circulator might use
more trolley-like buses. The mini-stop should __"x'com_ ~~ bicycle lm~.
Diane requested that we study options for a bus stop closer to the proposed
Restaurant/Legion, directly off of Highway $ (without any access to the remainder of the
site).
In order to reinforce the use of parking area whgn transit is not used, Diane suggesmd that we
l.,nd Use IEnvitonn~ttl · Phnn~/~
'~3001VimoBo~ev~lSuite525 · ldinnnimli~ldinnmmu 55439 · (612) 835-9960 · F~.(612)8~5-3160
Mr. P~ul Krauss
Transit Hub/Legion Site Development
November 29, 1993
Page 2
look at the potential for a Farmers Market and similar activities for this site.
10
HKGi will create a diagram that shows this site in the larger context of Chanhassen, with the
extension of Lake Drive to Market Boulevard, the Dakota Avenue/Highway 5 intersection,
trails and sidewalks that serve this area and the existing transit facility in downtown
Chanhassen. The purpose of this graphic is to aid the transit commission in making a
decision on this site as part of its system analysis.
11
At some point, there may be a request for shuttle service from the motel to other locations
(the Mall of America, for example). The site plan should accommodate bus service to the
motel canopy or front door.
Diane informed us of their schedule, which will require us to make some adjustment to our
schedule. Combining the two, we now have a schedule as follows:
December 27, 1993
January 7, 1994
January 10, 1994
January 26, 1994
Review status of our revisions to the concel?t, and receive
Southwest Metro's further input regarding this s~te as a result of
their system analysis
Southwest Metro will meet with MTC to review their system
analysis, including their ability to do something on this site
Southwest Metro will be able to define whether they can commit
to this site
Neighborhood Meeting
A more detailed schedule is attached.
Please call Fred or me if you have any questions.
CHANHA$$~ MOTEL/TRANSIT HUB
PROJECT SCHEDULE
TIMELINE TASK
!
NOV 18
NOV 29
NOV 29-DEC 7
DEC 7
DEC 7
DEC 8-10
DEC 8-25
DEC 16
JAN 10, 1994
JAN 11
JAN 20
JAN 20 - FEB 3
JAN 26
FEB 2
FEB3
FEB 3- MAR 15
FEB 4-JUN 17
Approval of SA2 Environmental Document (for pedestrian bridge)
Review plans w/Diane Harberts, SMTC
~ plans, provide SMTC w/supplemental information
Review plans w/Legion & Bill Ben
Review plans w/Bill Morrish
Meet w/MnDOT re:access
SMTC/Legion/Bell/MnDOT to respond to plato
Review plans w/HR (concept)
Commitments by all parties to plan; GO/NO GO
Marl notice of neighborhood meeting
I-IRA review plans/authorization to make offer & acquisition by
eminent domain pursuant to quick take procedures
Prepare purchase agreement (City Attorney)
Neighborhood meeting
Planning Commissian review of plans
Tender offer to Mortenson
Plm ~/comp~~ of Final report
Eminent domain process (quick take)
OREAT PLAINS
BOULEVARD
0
~ OREAT PLAINS
BOULEVARD
OREAT PLAINS
BOULEVARD
· AI:ITC~N-A~C~HMAN A~g3C~IA'r~ INC:.
111 Tr..,c Avenue So',lh. Sa,re 350 · M,nneapolis. Minnesota 55401 USA · (612) 3,32-0421. Fax: (612) 332-6180
MEMORANDUM TO:
COPIES TO:
FROM:
DATE:
Don Ashworth
Paul Krauss
Bill Crawford
John Mull-,',
R. CE;V£D
· '_'.EC 0 ]993
CITY OF
December 6, 1993
Upcomin~ Meetin~ on Status of Arboretum Boulevard Project
I am forwarding a copy of the meetin~ report prepared after our last discussion .
(October 7, 1993) regarding the fundin~ status of the Arboretum Boulevard prqject.
These minutes summarize the possibilities and lii~elil~ood of alternative funding strategies
and M-DOT's position as to availability of state/federal funds for the proje~
Since that meeting, Bill Crawford has had further discussions with M-T'K)T staff' which
confirm the current situation of limited funding for a large backlog of roadway projects
statewide.
I hope this is helpful in bringing you up to date on this issue which we will be discuss;-_-,
at our meeting on Monday, December 13, 9:00 A.I~L
!.
Project
Project No.
Dmte
By
Arboretum Boulevard
652323.90300
O~obcr 13, 1993
Deborah Porter
Meeting Re~ort
Meeting LocmtJon
Pm~eipmnt~
Rca Erickson, MnDOT
Evan Green, MnDOT
,lis McCarthy, FHWA
Paul )Crauss, City of Chanhassen
Bill Crawford, Banon-Aschman
Deborah Porter, Banon-A~¢hm~~
m
Meeting Date October 7, 1993
8ummany
A meeting was held on October 7, 1993 to discuss the current status of the environmental
review and funding possibilities of the Arboretum Boulevard project and the related
'reconstruction project.
C'~rrcnily, the TH$ project is planned for funding and construction in 1998, however, it is
possible that this date may be postponed to a later date depending upon competition for
funding among all Metro Division projects.
MnDOT has received approval from the Capital Improvements Committee to combine the
TH5 and Arboretum Boulevard projects into a joint project and to support both roadways for
funding in 199B. Arboretum Boulevard is seen as being very beneficial to the construction
and future operation of 'TH$ by offering controlled access, detour routes during construction,
etc.
However, the city anticipates significant development (school, office, parks, residential and
commercial uses) both noah and south of the TH:5 corridor during the next few years.
Subsequently, it is anticipated that at least n portion, if not gl, of the Arboretum Blvd.
roadway will be n~ded much sooner than 1998.
Therefore, alternative fundinl~ scenarios were discussed which would allow the City of
Cha~assen to pay for and construct Arboretum Boulevard as needed over the next few years,
with the understanding that MnDOT (and FHWA) would reimburse the City at a later date,
when funding becomes available. This type of "advanced funding" option is provided for by
state law and has been used by other cities in the metro area to build roadways prior to state
and federal funds being available for the project.
Barton-Aschman Associates, Inc.
~ i ! ·
BA will proceed in tell&ucc on this report. Any discrep~cies should be ~our, h~ to our Irtenticm in writing
wid~ (7) days.
.*
ProJ~t Arboz~m Boulevlrd
Heettng Report cont'd
I I
Another funding poss~ility that was mentioned was for the City to~ for STP funds
from the Met Cotmcil. But again, the Arboretum Boulevard project would be oompeting for
limited mon~ q~inst gl other projtg't3 in the tr~u.
After the meeting on October '/th, Ran F. ricbon discussed with Jim Povich 0dnl~T) the
potential funding scenarios for the Arboretum Boulevard project. Jim Povich's opinion was
that the h'kel~ood of advanced funding on a project tht is planned for 1~98 letting is not
good. Currently, MnDOT projects (and the TIP list) are programmed (i.e. JSmding specified)
for three years out. All other projects are in the 'development phase' (3-5 yea~ out) or
"planning phase" (more than five ~ out). '
If TH5 wes currently on the TIP list and in the three year progrannning schedule, then there
would be a better chance of advanced funding. However, the project would still have to
compete with ali other projects being reviewed by the Area Ttansponagon Partnership (ATP),
which is respons~le for prioritizing transpomtion projects.
The ATP consists of a committee of cities, counties, MniX)T and Md ~mncil. Its mission is
to allocate funding based upon comprehensive planning considerations for the region as .a
whole.
All of this seems to indicate that the City will be on their own to finance the Arboretum
Boulevard project if they want the roadway constructed prior to 1998. And, if "advanced
funding" of 1998 projects can only be sexm'ed three years prior to the letting date, it would be
1995 before the commitment of advanced funding could be made, asmming that thc TH5
Arboretum Boulevard ~oject is indeg~l pro--ed and on the TIP list is of 1995. This date
could shift to a later date if the project is not consid~ a priority project for 1S;Igg. So, it
a~s that it is somewhat debatable that thc City can count on advanced ~Smding by I
It is anticipated that a follow-up meeting should be held within the next couple of weeks to
discuss the most r~ulistic funding strategy for Arboretum Boulevm-d and to determine the best
plan for the remainder of the ~nvironngntel review ~.
Dabble Porter will contact Paul Kranss to arrange this meeting.
Barton-Aschman AssocJltes, Inc. ::: 3~d ^,, So~ · ~ ~ 55~z · (6:2) .,2~4::
· . all, I II I · I I I
BA will proceed in reliance om this reptm. Any di~ dJould be kouiht to our mu~ticm in writini~
Principals In Minnesota's Fastest
Growing Area
Brian H. Burdick
B.C. "Jim" Burdick
426 Lake Street Excelsior, Minnesota 55331 (612) 474-5243
January 14, 1994
Mr. Todd Gerhardt, Assistant City Manager
City of Chanhassen
Box 147
Chanhassen, MN 55317
Brian and T have discussed the telephone conversation that you and he had
yesterday. I understand that the two of you agreed that dealing with the
Post Office operation is more repugnant than dealing with any other
goverrmw_nt body. And of course, obviously much mare undesirable than
dealing with members of our wonderful American private enterprise system.
You did r~mind Brian that I agreed to keep an open mind on the Post
Office, which is correct. I will also keep an open mind to having a
house of ill repute etc. on the property.
We have plans for an attractive multi-level builR~ng on this property as
there is quite a differential in elevations. This builR~ng would
accommodate both ccmm~rcial retail stores and offices. Over the past
year many prospective tenants have expressed interest in this
develo~nent. There is no doubt that this interest will c~ntinue to grc~
as work begins on the Byerly's Su~ezmarket complex.
In as much as Mayor Don Chmiel has a vivid interest in and constant
concern as to the direction of develo~m~,nt in Chanhassen, I am sen~tng
h/m a copy of this letter. I am also sending a copy to the T.F. James
~y. Please see the enclosed oopy of my letter to them.
Enclosure
Mayor Don Chmiel
T.F. James ~y
"Success in business is purely
lf you don't believe us, jurt aS
a matter of luck.
any of the losers."
~~s Im MMse~ota's F~te~t
GTO~M~ Area
426 Lake Street Excmbior, MinrmsotB 55331
(612) 474-6243
January 14, 1994
Mr. Char//e James and Mr. T~nLe~.rs~/
T. F. James (kx~many
P.O. Box 24137
Mir~_~?olis, MN 55424
Please f/nd enclosed a copy of a letter addressed to Todd Gerhardt
oon~g a Post ~ffioe on our pz~0erty /n Omnhassen.
Quite frankly we only have about 94,000 square feet of pro~ert~ left and
we are most certainly not very /ntb_rested in hay/rig a Poet Office on part
or all of this pr~ertyo
B.c. (J M) m.m cx
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
FROM:
DATE:
Housing and Redevelopment Authority
Todd Gerhardt, Assistant Executive Director
February 18, 1994
SUBJ: Consider Appwval of Modification No. 13 of the Redevelopment Tax Increment
Financin~ Plan
=..
·
.
..
Attached for your review is a draft of Modification No. 13 to the Redevelopment Plan and Tax
Increment Financing Plan for Downtown Chanhas,sen (see Attachment #1). Under Minnesota
Statute, the HRA must approve the plan modification and request the city council hold a public
hearing on the proposed changes.
:
·
The proposed changes to the plan are as follows:
TIF Plan for Downtown
Xe
e
,
m
Acquisition of land for pedestrilm bridge.
..
Roadway upgrades for Lyman Boulevard, Powers Bmflevard, and State Highway 101
..
(Joint Powers Agreement with Carver County). ..'. -'
Use tax increment dollars to build a pedestrian bridge.- ...:::.
...
...
Use tax increment dollars to build a paridng lot, trails, and. landscaping around the Hanus
facility and old Apple Valley Red-E-Mix sites.
Acquisition of Willie Klein? ~ for fuUne Highway 101 fight-of-way.
6. Acquisition of Donald M~e pwpeny next to the Chanhassen Inn.
Housing and Redevelopment Authority
February 18, 1994
Page 2
Chan~es to the Project Area Boundaries
1. Include State Highway 101 north of Highway 5 to Townline Road.
Include the area between Audubon Road to the east, State Highway 101 to the west, and
those lands north of Lyman Boulevard (see Attachment
RECOMMENDATION
Staff recommends that the I-IRA approve the attached resolution and request the city council to
hold a public hearing on March 14, 1994 (see Attachment #3).
ATTACHMENTS
1. Redevelopment Plan
2. Map
3. Resolution
REDEV~OPMENT PLAN
AND
TAX INCRlmloTI' FINANCING PLAN
FOR
DOWNTOWN CHANHASSEN REDEVELO~ AREA
HOUSING AND REDEV~O~ AUTHORITY
IN AND FOR THE
CITY OF CHANHASSEN
MODIFICATION NO. 13
14, 1994
Prepared By:
HOLMES & GRAVEN, CHARTERED
470 Ptllsbur~r Center
blt~eapolts, Minnesota 55402
II.
TABLE OF CONTENTS
Redevelopment Plan ............................. 1
A~
B.
C.
D.
E.
F.
Definitions ....
· · · · 2
Project Area Redevelopment J s ............... 9.
Proposed Project Area Redevelopment Activities .......... 3
Project Area Plan ............
Project AreaFinancint~. :, : : : , : : . , , : : , , : : : : : : : : 4~
Tax Increment Financing Plan ........................
ae
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
q.
R.
S.
T.
Statutory Authority .......................... 6
Statement of Objectives ........................ 6
Statement of Public Purpose ..................... 7
Relation to Redevelopment Plan ................... 7
Boundaries of TIF District . .
Description of DowntownRe~e;~l~p~n't~%;e4 :. : : : : : : : : : 77
Development and Other Agreements ..... 7
History and Classification of TIFDistrict :, : : : : : : : : : : : 8
Modification of TIF Plan ........................ 8
Use of Tax Increment ......................... 8
Excess Tax Increment ......................... 9
Duration and Modification of the TIF District ............ 9
Relocation . 9
Propertiest;1;e'/~c~t~t~e~i~i'tl~h~h;~iF'I~ts'tl~i~t : : : : : : : : : 9
Public Improvements Plans ..................... 10
Estimate of Project Costs ...................... 10
Original Tax Capacity· .
Estimate of Captured Ta~ 6a'p'acit~ ~r~d'~s~ ~I~c~'e;~n't 11:11 19.
Estimate of Impact on Other Taxing Jurisdictions ........ 12
Annual Report Regarding TIF ...................
(i)
I. REDEVEI~PMF. NT PLAN
A. DEFINITIONS.
For the purposes of the Redevelopment Plan and Tax Increment Financing
Plan, the followinl~ te~ns shall have the meanings specified below, unless the context
othemvise requires:
"City" means the City of ChAnhAsson, a municipal corporation under the laws
of the state of Minnesota;
"Comprehensive Plan" means the City's Comprehensive Plan, inciudtn_~ the
objectives, policies, stancla~ds and programs to guide public and private land use,
development, redevelopment and preservation for all lands and water within the
cit~;
"City Council" or "Council" means the ChanhA=sen .City Council;
"County" means Carver County,
"HRA Act" means Minnesota Statutes, sections 469.001 thl~ugh 469.047, as
amended;
"Housinl~ and Redevelopment Authority" or "HRA" means the Housing and
Redevelopment Authority in and for the City of ChAnh~ssen, Minnesota, created
pureuant to the HRA Act;
"Redevelopment Plan" means the plan for redevelopment of the Project,
originally adopted by the City on Dec'ember 19, 1977, and as subsequently modified;
"Redevelopment Project" or "Project" means the redevelopment project
established by the City on December 19, 1977, in downtown Ch-,~hsssen and
expanded on December 18, 1978, to include the Ch-nhAssen Lakes business park
south of T.H. 5, pursuant to Minnesota Statutes, sections 469.001 through 489.047;
"State" means the State of Minnesota;
"Tax Increment Bonds" m_~n= any general obligation or revenue tax increment
bonds issued by the City to finance the public costs asso~-tsted with the Project as
stated in the Redevelopment Plan and in the TIF Plan., or any obligations issued to
refund the Tax Increment Bonds;
"Tax Increment Financdng Act" or-"TIF Act" m_~ns Minnesota Statutes,
sections 469.174 through 469.179, as amended; and
"Tax Increment Finan~g District" means the tax increment financing district
established within the downtown redevelopment area and the Ch-~bA-sen Lakes
business park area;
"Tax Increment Financing Plan" or "TIF Plan" means the plan by which the
HRA intends to assist development within the Project, which Plan was ori~nslly
adopted on December 19, 1977, and as subsequently modified. This m~rks the
thirteenth formal modification of the TIF Plan.
~S5365
C~130-5
B. PROJECT AREA.
The Chantmssen Downtown Redevelopment Project Area contains
approximately 2,200 acres of land. One hundred seventy-five acres are
located north of T.H. 5 and comprise what fs generally recognized as
downtown Chanhassen. The remainder of the Project Area is south of T.H.
5 in the Chanhassen Lakes business park and other areas. The Project Area
officially includes all lands shown in Figure 1 of this Modification No. 13.
Approximately 1,519 acres is being added to the Project Area as a result of
this modification in order to accommodate the Chanhassen/Carver County road
construction projects detailed herein. This represents an expansion of the
Project Area but not of the tax increment financing district.
The Project Area is generally described as being bounded by Audubon
Road on the west, and then follow T.H. 5 west to Galpin Boulevard, then
north approximately five hundred (500) feet, then the line is extended due
east to Laredo Drive, then south to West 78th Street, then east to T.H. 101
which is the T.H. 5, also including lands west of T.H. 101, then south of
T.H. 5 to the Lake Drive East and Dakota Avenue intersection, then east to
the old and current alignment of T.H. 101 south, but also including lands east
of T.H. 101 and Lyman Boulevard on the south.
C. PROJECT AREA REDEVELOPMENT OBJECTIVES·
The HRA through this Redevelopment Plan seeks to achieve the
following objectives:
·
Diversify the tax base of the City by encouraging commercial and
industrial development which in turn will enhance employment
opportunities, create stability in the tax base and incr.·as· and
protect prope~y values;
.
Encourage redevelopment of commercial and service-oriented
businesses to better serve the consumer needs of the community;
·
Remove structurally substandard buildin~'s which cannot be
rehabilitated;
·
Acquire and remove buildings that are economically or
functionally obsolete or under utilized and acquire land that is
vacant or under utilized to facilitate redevelopment;
o
Eliminate blighting influences which impede potential development
in the area;
o
Provide redevelopment sites of the size and character necessary
to assure development of the area and strengthen the overall
economy and improve the sources of public revenue;
.
Promote industrial development, provide increased employment
opportunities and supplement the financial base of the
community;
8. Provide land for publicly assisted housing;
RHB65365
C!i~.30-5
e
Provide land for needed expansion of extsttn~ businesses in the
area;
10.
Provide adequate street, utility and other public improvements
and facilities to e-ha,~ce the area for both new and extstin~
development;
11. Achieve rehabilitation of buildings when economically feasible;
12.
Accomplish the applicable goals of the City's Comprehensive
Plan;
13.
Provide msximum opportunity, consistent with sound needs of
the City as a whole, for rodevelopment by private enterprise;
14.
Provide ~eneral desiKn Kutdance in conjunction with suitable
development controls in order to e-ha~e the physical
environment of the area;
Encourage and facilitate involvement of the community in
resolvin~ neighborhood problems related to business, physical
structures and land use; and
16.
Provide i'4.arl~al incentives as appropriate to stimulate K~owth
and private sector redevelopment efforts within the Pro, ct Area.
D. PROPOSED PROJECT AREA REDEVELOPMENT ACTIVITIES.
The stated objectives of the Redevelopment Plan ar~ intended to be
accomplished ttwough the following actions of the HR.A:
1. Clearance and redevelopment;
2. Relocation of buildin~ and the inhabitants of building;
3. The provision of bufldin~ sites for new and expandin~
businesses;
4. Vacation of rights-of-way;
5. Dedication of new ri~hts-of-way;
6. Land acquisition and leasing;
7. Soils corrections and land preparation;
A Special Assessment Reduction P~o~ designed to stimulate
development within the Project Area;
e
New constmiction, or improvement of public streets and pa~~
lots;
10. Installation or replacement of public facilities and utilities;
~rl30-5
11.
Financial subsidies to induce businesses to locate within the
Project Area; and
12. Landscaping and streetscape improvements.
E. PROJECT AREA PLAN·
Figure 2 of Modification No. 11, dated April 17, 1992 portrays the
overall plans for the Project Area. Plan highlights include the following:
·
The Chanhassen Lakes business park comprising 450 acres, fully
served by sewer, water and landscaped streets;
0
The downtown redevelopment area which is intended to be
redeveloped for a multiplicity of uses including convenience and
specialty retail, services, entertainment, recreational, cultural,
office, institutional and multi-family residential and including
public parking to adequately serve new developments;
·
A Hnear open space system within the business park and
including parks on Lake Susan and in downtown Chanhassen;
·
The relocation of T.H. 101 to intersect with T.H. 5 at Dakota
Avenue and remove traffic from the downtown area by routing it
directly to T.H. 5 and new Market Boulevard;
e
The extension of Lake Drive from County Road 17 to T.H. 101 to
accommodate local traffic demands;
e
The realignment of West 78th Street at County Road 17 to provide
adequate stacking distance between West 78th Street and T.H.
5;
·
The widening of County Road ! 7 from Lake Drive to the northerly
line of the tax increment financing district and the creation of an
urban section in this Project Area;
e
The construction or reconstruction of public utilities within the
downtown redevelopment area to accommodate new development
including the acquisition and construction of a major ponding
area with over a million cubic feet of storage to serve all of the
downtown area;
·
The construction of Market Boulevard from West 78th Street to
the southerly line of the tax increment financing district;
10.
The construction of Lake Drive from Audubon to existir~ T.H.
101 and the upgrad~g of Audubon within the tax inc~ment
financing district; and
11.
Redevelopment of the area north of T.H. 5 extending from Great
Plains Boulevard easterly to realigned T.H. 101;
Jt!~6536§
CH130-S 4
12.
15.
The development of a new pa~k and the expansion of an existin~
park;
Heritage preservation enhancements;
The meeting of public facility needs; and
Aesthetic improvements to Highway 5 to enhance the downtown
a~ea's ~ and identity.
F. PROJECT AREA FINANCING.
The HRA has underiaken and intends to continue to develop plans for
public improvements and to m~ke land available for redevelopment by private
pa~,.tes within the Project Area. Previous Redevelopment plan. have contained
descriptions of new projects. New proposals proposed by the HRA at this time
are detailed in Subsection G of the accompanyin~ modified Tax Increment
Financing Plan. The HRA intends to finance both public improvements and
redevelopment activities throu~ a combination of speafal assessments and tax
increment financing. Special assessments levied within the Project Area may
be eliLdble for reimbureement through the HRA's Speaial Assessment
Reduction Prog~un which is described in more detail in Subsection P of the
accompanying Tax Increment Ftnancin~ Plan. Tax incr~nent paid to the HRA
is pledged through a written aL~reement with the City for ~payment of bonds
issued by the City to pay for public costs in the Project Ar~a.
C~130-5
II.
TAX INCREMENT FINANCING PLAN
A. STATUTORY AUTHORITY.
Pursuant to the HRA Act, the City on December 19, 1977 created the
Project in the downtown portion of Chanhassen north of Highway 5 and
established the area as a tax increment financing district. On December 18,
1978, the Project.was expanded to include an additional 450 acres south of
Highway 5 and that area was also included as part of the TIF District. At the
time of the creation of the Project, the Redevelopment Plan was adopted by the
HRA and the City. The Redevelopment Plan contained details of the Project,
and included a brief discussion regarding the use of TIF. This constituted
the "statement of the method proposed for financing" the Project required at
that time by the HRA Act. The Project has also been expanded since 1978 and
is being enlarged by the adoption of a modified Redevelopment Plan concum-ent
with the modified TIF Plan. This modification does not involve an eniargement
of the TIF district.
Due to changed circumstances and new development opportunities, the HRA
and City have chosen from time to time to amend the TIF Plan. The HRA and
the City now wish to adopt another modified TIF Plan which accurately reflects
the current financial plan for the Project, with particular emphasis on
downtown Chanhassen. This constitutes the thirteenth modified TIF Plan.
However, adoption of this modified TIF Plan does not constitute an election on
the part of the City or HRA to proceed with the Project under the TIF Act,
except to the extent required by section 469.179. The HRA and City intend
to continue to administer the Project as a TIF District created and certified
prior to Augus~ 1, 1979, to the extent permitted by law.
B. STATEMENT OF OBJECTIVES.
The HRA and City seek to achieve the following objectives through the
modified TIF Plan:
1. Provide employment opportunities within the City;
J
Improve the tax base of the City and the general economy of the
City and State;
.
Encourage redevelopment of the Project Area which is an area of
Chanhassen which has not been utilized to its full potential;
4. Implement relevant potations of the City's Comprehensive Plan;
0
Assist in the acquisition of certain properties for the purpose of
constructing needed public improvements and promoting
redevelopment; and
.
Implement a program of special assessment reductions for
properties within the Project Area whose market values have
increased due to new construction since the creation of the TIF
District.
C. STATEMENT OF PUBLIC PURPOSE.
In adopting the modified TIF Plan and administer~g the Project, the
HRA and City have made the following findings:
·
Redevelopment of the Project would not reasonably be expected
to occur solely thr~ul~h private investment wit_hi- the r~asonably
foroseeable future and, therefore, the use of TIF is deemed
necessar~y;
·
The Redevelopment and TIF Plans will afford ma~mum
opportunity, consistent with the sound needs of the City as a
whole, for development of the Project by private enterprise; and
·
The Redevelopment and TIF Plans conform to Keneral pi,,, for
the development of the City as a whole·
D. RELATION TO REDEVF. LOPMENT .PLAN.
The City authorized the Project on December 19, 1977, and modified its
boundaries on December 18, 1978. Additional land was included wtSh~ the
Project Area in connection with the adoption of Modification No. 7 to the TIF
Plan in 1987 and with Modification No. 11, dated April 17, 1999..
Modification No. 13 adds additional pr~rpe~ to the Pt. oJeot Area and is
illustrated in FIKure 1 attaahed hereto.
E. BOUNDARIES .OF TIF DISTRICT.
Boundaries of the TIF District area are shown on ~re 1 of
Modification No. 11. The TIF District includes prope~y in both the downtown
and Chanhassen Lakes business pa~k areas. LeEal descriptions of the
boundaries of the TIF District were included as exhibits to Resolution
Nos. 77-72 and 78-73, adopted by City Council on December 19, 1977 and
December 18, 1978, respectively. The boundar~f of the TIF District will not
be chanKed as a result of this Modification No. 13.
F. DESCRIPTION OF DOWNTOWN REDEVELOP.afk~NT AREA.
The downtown redevelopment area is the potation of the PeoJect
originally created by the City in 1977. It consists of approximately 175 of the
Project's total of 2,200 acres. The downtown redevelopment area is located
no~th of Highway 5 and a majority of it is west of HtK~way 101 (Great Plains
Boulevard). The area contains the retail and comm~_r~]-! core of the City,
includin~ the Ch,nh,,-sen I)~-ner Theater. Althoul~h the tnfrast~.u~ and
public facilities have bccn improved si~nificantly in recent year·, the
downtown redevelopment area is still characterized by the unde~ut~Hy~tion of
land.
G. DEVELOPMENT AND OTHER AGREEMENTS.
The HRA has nel~otiated numerous aKreements with develop·re in the
past seeking to develop land withi, the downtown redevelopment area. Many
of these projects have been outlined and discussed in previous modifications.
Z~B~SS3SS
CB130-5
In addition to those matters, the following projects are the subject of current
or upcoming negotiation:
·
Target Store· The HRA intends to purchase approximately 18
acres for development of a Target Store and the creation of
several outlots. The project will be located north of Highway 5
and south of West 78th Street· A portion of West 78th street will
be vacated to accommodate the project. Target will occupy a site
of slightly more than 10 acres.
·
Taco ShoD/Apple Valley Redimix. These properties on Highway
5 will be redeveloped with more attractive and appropriate land
uses. Plans call for use of portions of these sites for highway-
related amenities, including a rest stop or open space. Other
portions will be developed for highway-oriented commercial uses.
Conference Center[Recreational Center· The HRA intends to
acquire property north of the Soo Line railroad in the vicinity of
the Chanhassen Dinner Theater, including the FMG Warehouse,
Chanhassen Bowling Center and Frontier Building. Plans call for
development of a multipurpose conference center/recreation
center/bowling facility. Retail uses, including a cinema or
restaurant, and a library may also be included.
H. HISTORY AND CLASSIFICATION OF TIF DISTRICT.
The TIF District was established by the HRA and City in late 1977 and
contained approximately 175 acres centered on what is now known as the
downtown redevelopment area. The TIF District was expanded the following
year with the inclusion of approximately 455 acres in the arcs south of
Highway 5 known as the Chanhassen Lakes business park. For purposes of
classification, the TIF District is a pre-1979 TIF District and the HRA and
City intend to retain that designation except as required by section 469.179
of the TIF Act.
I. MODIFICATION OF TIF PLAN.
This modification marks the thirteenth formal modification of the TIF
Plan. The TIF Plan may be modified again in the future by the HRA and City
as changing conditions warrant.
J. USE OF TAX INCREMENT.
All revenues derived from the TIF District shall be used in accordance
with the current modified TIF Plan. The revenues shall be used to finance or
othemvise pay the capital and administrative costs of development activities
within the Project Area as identified in the TIF Plan. Tax increment paid to
the HRA is pledged through a written agreement with the City for r~payment
of bonds issued by the City to pay for public costs in the Project Area.
J1~6536S
CH130-5
K. EXCESS TAX INCREMENT.
In any year in which the increment exceeds the amount necessar~ to pay
the costs authorized by the TIF Plan, the HRA shall use the excess amount to
do any of the following, in the order dete~vnt~ed by the HRA:
1. l~epay any outstanding bonds;
2. Discharge the pledge of tax increment therefore;
.
Pay into an escrow account to the county auditor who shall
distribute the excess amount to the City, the County and tlie
school district in rlt~ect propoz~don to their respective tax
capacity rates o~ in acoor~lance with any ~ment between the
County and the City or the HRA.
In addition, the HRA and City may choose to modify the TIF plan agwl~
in order to provide for public improvements or other development costs withtn
the Project.
L. DURATION AND MODIFICATION OF THE TIF DISTRICT.
The ~eoKraphic area of the TIF District may be reduced but it
be enlarged after August 1, 1984. As a TIF District established prior to
Au&mst 1, 1979, the TIF District will expire on Au&mst 1, 2009, except as the
provisions of section 469.176, subdivision 1 (e) of the TIF Act may
others..
M. RELOCATION.
The HRA accepts as binding its obli~ations under Minnesota Statutes,
sections 117.50 through 117.56 for relocation and will administer relocation
services for families, individuals and businesses displaced by public action.
N. PROPERTIES TO BE ACQUIRED WITHIN THE PROJECT AREA.
Fi&mr. 3 of Modification No. 11 showed all proper~cies which had been or
were proposed to be acquired within the Project Area as a result of actions
described or authorized by the then-current TIF Plan. Several additional
parc.is are scheduled for acquisition as a reeult of' tht. Modification No. 13,
includin~ the following:
.
Part of Lot 3, Block 2, Frontier Development Pa~k. This
proper~y is located west of the Chanhassen Inn between W. 79th
Street and T.H. 5. It is bek~ acquired because it has been
designated as wetlands.
.
Right-of-way for Co. Rd. 17 from West 78th Street to Lyman
Blvd.
3. Right-of-way for Ly,n~n Blvd. from T.H. 101 to Audubon Road.
.
Land necessary to accommodate pedestrian bridge over T.H. 5
and related trails.
C~.30-5
,
Willie Kline property/right-of=way for future T.H. 101
alignment.
Acquisition for projects 2 and 3 above are being pursued in accordance with
the Chanhassen/Chaska/Ca~ver County road funding project, whereby
Chanhassen and Chaska have agreed to assist Carver County in funding
certain road improvements. The designated improvements are one which have
been identified in the Eastern Carver County Transportation Study as having
high priority, but which Carver County is unable to afford solely on its
resources within the reasonably foreseeable future. The HRA and city have
agreed to fund a portion of these county road costs within the next five years
and will be reimbursed for such expenses by Carver County during the per/od
2001 through 2003 and thereafter if permitted by law. The properties
identified above for acquisition are shown on Figure 2.
O. PUBLIC IMPROVEMENTS PLANS.
Substantial public improvements have been undertaken during the last
several years with~ the Project Area. Additional improvements are
contemplated at the present time or in the near future, including the ruad
improvements discussed above. All public improvements, including those
contemplated by the Chanhassen/Chaska/Carver County road fundtn~
aiTeement, will be constructed in accordance with all requirements of law.
P. ESTIMATE OF PROJECT COSTS.
Since the downtown redevelopment area is within an existing TIF
District, increment is currently being generated and administered by the
HRA. Increment generated by the TIF District has been collected by the HRA
since shortly after the creation and expansion of the TIF District and Project
in the late 1970s. Funds generated through tax increment have been used for
a variety of purposes, including land acquisition, relocation and public
improvements. The HRA commits itself to expend the portion of the increment
generated by the TIF District which is necessary to pay the outlined costs.
The HRA has participated a special assessment reduction program for
properties throughout the Project. Under the modified program in effect as
of the adoption of this Modification No. 13, benefitted properties are eligible
for reductions in assessments if there has been an increase in the assessed
value of the properties due to new construction. The amount of the reduction
for which a property owner is eligible is equal to one-half the tax increment
from the parcel (as determined by the auditor and adjusted for fiscal
disparities contributions) for the period commencing with the year in which
the HRA receives the first full year's increment through the year 2000.
However, the maximum reduction may not exceed the total special assessments
levied and outstanding against the parcel for qualifying public improvement
projects. Owners wishing to participate must enter into a special assessment
reduction agreement with the HRA.
~3,30-5
10
In addition to project costs outlined in p~evlous modifications, the
followin~ are costs anticipated for upcom~n~ projects:
Land Acquisition
Part of Lot 3, Block 2 ~
Fl'ontier Development Pa~k $ 35 ~000
Pedestrian brid~ pads and
related tz~dls 57,000
Willie I~llne proper~/z~Kht-of
way for future T.H. 101 altSmment 120,000
Public Improvements
Reconstruction of Co. Rd. 17
from West 78th Street to Lyman Blvd. 4,450,000
Reconstruction of Lyman Blvd.
from T.H. 101 to Audubon Road 2,000,000
Construction of Pedestz, lan Bz'ldi~e 450,000
Highway entz~/monuments and IAndsoapin~
at intersections of T.H. 5 and Co. Rd.
17, Market Blvd., Dakota, and Great p1A~,~= 500,000
Administration 750,000
TOTAL $8,362,000
As detailed elsewhere in th;; Modifloations No. 13, the HRA is committed to
eer~caln expenditures which will be of mutual benefit to the HRA, Car~er
County and I. S.D. No. 112. The HRA intends to expend $8,500,000 on county
highway projects within the Pr~Jeot Area. The City has enter~cl into an
agreement with Ca~.ver County regat*dtng these expenditures and
reimbursement for same by Ca~ver County out of excess tax increment du~
the years 9.001 through 9-003, or later, as permitted by law. 'The City will
cont,-us to evaluate its overall flnan_~l,~] commitment so u to allow "excess levy
distributions" to the school dl-t~ct as authorized by state law.
Under our?ent state law, the HRA's activities withiT~ tile ~Ct ~
will be substantially cu~d bes~[nnin~ on April 1, 9.001. The HRA intends
to seek adjustment of those rest~ctions from the. __l~esota legislature and will
seek the support of Car~er County and I.S.D. No. 119. in its effoz, ts to secure
spe,~i_ ~1 legislation fo? this purpose. If the HRA is successful in these efi~oz-ts,
the HRA will initiate a ~Aeusston with the county and school district
regarding sha~lng increment during the per~od following April 1, 2001.
c:z3.3o-5 11
ORIGINAL TAX CAPACITY.
The Tax Increment Financing District has been highly successful in
meeting the goals and objectives outlined in this Plan. With the completion of
all projects currently anticipated, over three million square feet of commercial
and industrial space will have been constructed. The current total tax
capacity of the Tax Increment District is $3,579,891 with a base tax capacity
of $150,972.
R. ESTIMATE OF CAPTURED TAX CAPACITY AND TAX INCREMENT.
The HRA's estimate of captured tax capacity of the TIF district has
been outlined in previous modifications, most recently in Modification No. 12
adopted December 14, 1992. None of the new projects or expenditures
outlined in this modification will increase the estimated captured tax capacity
of the TIF district.
Se
ESTIMATE OF IMPACT ON OTHER TAXING JURISDICTIONS.
,
The HRA's esthnates of the fiscal impact of various new improvements
within the TIF d/strict have been outlined in each previous modification as
appropriate, including new projects discussed in Modification No. 12 adopted
on December 14, 1992. Since this modification does not relate to any new
private, taxable projects, there is no change in the HRA's estt-~te of the
fiscal impact of the TIF district on taxing Jurisdictions.
T. ANNUAL REPORT REGARDING TIF.
Pursuant to section 469.175, subd. 8a of the TIF Act, the HRA must
report annually by March 1 to the Minnesota commissioner of revenue the
following amounts for the entire municipality:
I ·
the total principal amount of nondefeased tax increment financing
bonds that are outstanding at the end of the previous calendar
year; and
e
the total ~nnual amount of principal and interest payments that
are due for the current calendar year on (i) general obligation
tax increment financing bonds, and (ii) other tax increment
financing bonds.
The HRA must also annually report to the commissioner of revenue the
following amounts for the TIF district.
I ·
the type of district, whether economic development,
redevelopment, housing, soils condition, mined unde~.E~ound
space, or hazardous substance site;
2. the date on which the district is required to be decertifled;
the captured net tax capacity of the district, by property class
as specified by the commissioner of revenue, for faxes payable
in the current calendar year;
12
®
the tax increment revenues for taxes payable in the oum, ent
calendar year;
whether the tax increment plan or other governing document
permits increment revenues to be expended (i) to pay bonds, the
proceeds of which were or may be expended on activities located
outside of the district, (ii) for deposit into a common fund from
which money may be expended on activities located outside of the
district, or (iff) to otherwise ~n~nee activities located outside of
the tax increment district; and
any additional t,~form~tion that the commt=sioner of revenue may
require.
C~30-5
1:3
Rol~lrr A. ALaof
RONALD !'!. l~T'rV
~ J. BU~UL
JOHN sa DS. AN
IVlAI¥ G, Dol~ml~{
COIIINE A. I:IEIN~
JA~ S. HOLMgS
l~vm J. F~szsv
JOHN R. ~W
Ws~J-nqOTON lq. Lstw
JOHN M. LEFZvlt~ JIt.
ROS~,IT J. LtND.~LL
February 10, 1994
HOLMES & GRAVEN
470 Pflbbur~ Cint~r, Mlnn~poil~ MtnMmota 9S40~
(~13) 337,.~300
Facdmilo (612) 337-9310
WRITER*~ DIRECT DIAL
337-9262
ROBn'T C. LONG
LA, USA IL MOLt,ET
BAIBAIA L. POII'WOOD
JAMES M. STnOMMmq
J,UdZS J. THOMSON, JL
LAIIY M. WnTHEIM
GAIY P. ~
DAVID L,'GIAVEN (1~2~.10~1)
itomT C. CAI.LSON
ROBERT L, DAVmm:)N
T. JA? fAI,~
Dr. Dave Clough
Superintendent
Independent School District No. 112
1700 Chestnut Street
Chaska, MN 55318
RE: Modification No. 13, City of Chanhassen Redevelopment Plan and TIF Plan
(Downtown Chanhassen Redevelopment Area)
Dear Superintendent:
This is to notify I.S.D. No. 112 that the City of Chanhassen will conduct a public
hearing on Modification No. 13 of the Redevelopment Plan and TIF Plan for the
captioned Project at a city council meeting on Monday, March 14, 1994, at 7:30 p.m.
in the city hall. A representative of the school district is invited to attend the
meeting or you may send written comments to Mr. Don Ashworth, Chanhassen City
Manager.
Enclosed is a dr~ft copy of modification No. 13 of the Redevelopment Plan and TIF
Plan. If you have any questions regarding the Plans, please feel free to call me at
337-9262 or Mr. Ashworth at 937-19'00.
i4~erely, · ~ _ ~
Special County to the r
City of Chanlmssen
RHB: ckr
lUlB45018
CI1130-5
JdAl? G. IX)iBM
~s seANIE N. GALEY
DAVID J. KnOm)T
WlIJ. mGTON H. L~W
ROBERT J. LmI)ALL
Febi'uary 10, 1994
HOLMES & GRAVEN
(~12) ~
Fladmb (6L1) 331.4310
337-9282
ROBERT L. DAVlDSON
T. JAY S6J.td~q
Mc. Dick Stolz
County Administrator
Carvei' County Cou~house
600 East Fourth Street
Chaska, ~ 55318
RE: Modification No. 13, City of ChAnhAAsen Redevelopment Plan and TIF
(Downtown Chanhassen Redevelopment Az~a)
Deal' MI'. Stolz:
This is to notify Carver County that the City of ChAnhR=sen will conduct a public
hearing on Modification No. 13 of the Redevelopment Plan and TIF plan roi' the
captioned P~oJect at a city council meeting on Monday, March 14, 1994, at 7:30 p.m;
in the city hall. A representative of the county is invited to attend the meeting or
you may send written comments to MI'. Don Ashworih, ChR~hAssen City MAnAESI'.
Enclosed is a draft copy of modification No. 13 of the Redevelopment Plan and TIF
Plan. If you have any questions ~ga~dtng the Plans, please feel free to call ma 'at
337-9262 or Mc. Ashwoi'th at 937-1900.
City of ChaubA=sen
RHB: alii'
JmB45018
Ci!130-S
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Hoislngton Koegler Group Inc.
7300 Metro BIvd· · Suite 525
Mlnnelpolls. MN 55439 · (612)835-9960
CHANHASSEN
DOWNTOWN
REDEVELOPMENT
PLAN
I.~GEND
-- 'rix I~orement Dl~lriOt
m,-m~ Prolmsed ProJeot Area
/'~-/ / j'¢~' ~
CITY OF CHANHASSEN
HOUSING AND R~EVI~)PMENT AUTHORITY
Date
Motion By
Resolution No.
Seconded By
RESOLUTION APPROVING MODIFICATION NO. 13
TO THE REDEVELOPMENT AND TAX
INCREMENT FINANCING PLANS FOR THE
CHANHASSEN DOWNTO~ REDEVELOPMENT PROJECT
BE IT RESOLVED by the Housing and Redevelopment Authority in and for the
City of Cbsnbsssen, l~nnesota as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of
Cbs~h~sen (Authority) and the City Council of the City of Chanlumsen (City)
approved a redevelopment project for the downtown Chanhassen ar~a (Project) and
adopted a redevelopment plan and tax increment f~cing plA~ for same
(collectively, Plans) on November 29, 1977 and December 19, 1977, respectively.
1.02. Due to changes in the nature and extent of public and private
improvements to be constructed or increases the area included wtth~- the Project,
the Plans have been the subject of twelve modifications since their adoption in 1977.
1.03. Additional changes in the public and private improvements to be
constructed with~,~ the Project have now necessitated another modification.
1.04. In response to these changes, the Authority and the City have
authorized the preparation of a modified Redevelopment plan and Tax Increment
Financing Plan which are contained in a document entitled nRedevelopment Plan and
Tax Increment Ffl~ncing Plan for Downtown ChsnhR~sen Redevelopment Area,
Modification No. 13n dated March 14, 1994 and on file with the Authority.
Section 2. Authority Approval.
2.01. The Authority finds that the objectives of the Authority and the City
of encouraging development and redevelopment within the Project will be advanced
by adoption of the modified Plans.
2.02. The modified Plans are hereby approved and adopted by the Authority.
The modified Plans incorporate by reference the original Plans and all subsequent
amendments thereto, except as the mod/fled Plans explicitly or by ~asonably
necessary implication conflict with the original Plans or any of the first twelve
amendments thereto.
Section 3. Further Proceedings.
3.01. It is noted that copies of the modified Plans have been transmitted to the
board of Independent School District No. 112 and the board of commissioners of
Carver County for review and comment and that said public bodies have been
notified of the hearing to be held on the Plans by the City.
3.02. The Authority requests the City to hold a public hearing on the Plans
pursuant to .Minn. Stat. Sections 469.028 and 469.175 as soon hereafter as is
practicable and recommends that the modified Plans be approved by the City.
Adopted by the Housing and Redevelopment Authority in and for the City of
Chanhassen, Minnesota this
day of , 1994.
Chairperson
ATTEST:
Secretary
~!~29554
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORAND~
TO:
FROM:
DATE:
SUBJ:
Housing and Redevelopment Authority
·odd ~~d~ A..~..~ ~,~..v, D~~ ~¥:/.
Consider Chan~ng March Meeting Date
Both Don Chrniel and Mike Mason would like the liRA to consider changing the liRA's March
meeting date. The reason for their request is because there is a conflict with a joint meeting
between the Minnetonka School District and ama ciD' council representatives to discuss the issue
of overcrowding at the Minnetonka High School (see Attachment #1). Both Don and Mike feel
this meeting is important for them to attend.
Staff recommends either March 10 or 31 as sim-nam daws the HRA may wish to consider.
1. Memo dated February 7, 1994 from Don Draayer, Superinmutent, Minnetonka School
District.
·
Donald R.
February 7, 1994
Minnetonka
Public Schools
Learning Tod~y for Leading Tomorrow
From:
Bden~
~weod
Shorewond
To·lin lily
Woodland ~
Don Druyer, ~ta~at of
FEB 0 B 1994
CITY Or t.r,~,., ,,-,,.~,,
Joint M~ with City ~ lad ~ of ~
Recently I lent a letter to you inviting Mayors or desi~ and City 1V~erl to ·~ ~
with the l~mnetonlm Board of ]~lucation on l~arch 24, 199,t, 7:30 p.m., Somrd of Bd~
Room, 261 School Avenue, Excelsior. *llmse plans are ~ nicely and it wmxM be
helpful to know for certain who and how many will be attending. Attar. bed is · reply form to
m_~ this information more clear. The School Board nmnbers met with ~tatives of the
Minneton~ City recently and found the exchanse to be very lively and mutually ben~dlclaL We
trust that will be om' ex~ on the 24th, Iz w~ll.
Approximately fifty percent of our student body at Minn~onka ]~agh School comes from the City
of Minnetonka and fifty percent from the munictpah' 'nes west of the Ciiy of l~utmonk~ All
students end up going to Minneton~ High School for four yem of high ~ educltlmt. As
you probably know, thc high school in beco~ overcrowded. '1~ number of students ~
enmUed in our elementary schools will soon fill the high school to overcro~, therefore the
Mirmetonka High School Task Force on Pro, mm and Space Piannin~ hu bern appointed to
study this whole situation and make recom~~ons to the School board. Twenty-one people
serve on this Task Force, representing all geographic areas of our community, a~e lm, e. ls and
various intgrem.
One of the ideas which surfaced in the discussions betw~ the Minn~ City Council
rcp~tatives and school offtcigs was to have · non-votin~ liaison Ire'sm to the MRS task
Force. Communications would be improved thereby lad, of courle, ql~ related to
requirements are germane for the City of Minnetonla becau~ th~ high sclxxi is locat~ in th~
municipality.
Thc School Board discussed the possibility of · liaison perm· on Thursday niiht u put of thdr
regular School Board meeting. They decided it was · good idea to have such · liaison person;
side of the district.
(612) 470-3404
Draayer, Ed. D., Superintendent 261 School Avenue, Excelsior, Minnesota 5S331 FAX (612) 470-3432
Shorewood, Tonka Bay, V'lctwh and Woodlaml would hve occuim to oome tt~ for
plann~ pm'pm~ If so, -would it be ~ h' som~ ~,~'t~_ ' lo oem' ~ a
possible liaison person to ~ u · nnn-votin~ ~ of th~ MI~ Task ltm, t~
underway ~, if this ~ ~ h a ~ ~ w~ ~y slmuld not wait too ion; to
implement lt. On the other hand, if It Is not porn'hie w Ilk~y that a ~ ~ emsM be
DRD:pls
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
FROM:
DATE:
SUBJ:
Housing and Redevelopment Authority
Todd Ocrhardt, Assistant Executive Director
February 18, 1994
Consider Award of Bid for Demolition of thc Apple Valley Red-E-Mix Plant
Staff opened bids for the demolition of the Apple:valley Red-E-Mix Plant on Thursday, February
17, 1994. The bids received ranged from the .low bid of $25,865 to a high of $59,000 (see
Attachr~nt #1). The engineer's estimate to complete thi. work was estimat~l at $35,000 (see
Attachn~nt ~2).
Staff feels comfortable using Wickenhauser Excavating to demoli.h ~is site based on previous
projects they have completed in the Twin Cities me, a.
RECOMMENDATION
· .:
·
Staff reconunends that the HRA award the bid for demo '!i~hing the Apple Valley Red-E-Mix
Plant to Wickenhauser Excavating, the low bidder, in the mount of $25,865.
..
ATrACHM~NTS
1. Bid tabulation
2. Enginecr's Estimate
: .---.'
....
·
·
1NC.
T'r, re~het .qq,a a.ee
~ 'Ft-,ird Street :~o.
.%h\ ~.~.~J$
Fax 6t2/370-1375
Dcn'~al.~ W. Ringrc~.
Richara 1'.
~omas F. Carwll
~g A. Am~n
J~ 8. M~Na~ra
~rd D. Pil~an
~ ~.
Jeff~ L.
~lph C. Blum
G~'J. Eric~
J~ C, Lvr~h
Paul N'. ~y
Gary A. Ehrec
A6js Pa~h~
Howard P. Pr~;on
October 18, 1993
Mr. Todd Gerhardt
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Apple Valley Redi-Mix
Building Demolition
Dear Todd,
The following information is provided as requested regarding the
demolition of the existing Apple Valley Redi-~ plant in the northwest
corner of the Highway 5 and TH 101 intersection. It is our understanding
that, as a part of the City's acquisition of this property, a preliminary cost
estimate is needed for engineering and demolition services re. lated to the
removal of the buildings on the site.
After a review of previous demolition projects performed in Ch~ru~~
and discussions with demolition contractors, we estimate the following
costs for, the engineering and demolition services:
· Engineefi'ng $ 5,000
· Demolition $35,000
· Total Estimated Cost $40,000
It should be noted that these costs are approximate, and that the costs for
the demolition work may vary depending upon the bidding environment
at the tirn~ the work is performed.
Please call if you have any questions or we can provide any further
assistance.
Sincerely,
BRW, INC.
rro ecyManager
JSH/j
cc: 1480A.80
F~bruary 18~ 1994
~RW
Phmnmg
U~ Dc~i~
ThreSher
M.~55415
Fax 612/.%70-
M~rtne~,~! i:~
5~m Dic~
Richard P. WoL¢~Id
Thomas F. Carroll
Crag A. Amu~n
.
J~ L. ~n
~c.~
~J.~
Jo~ ~
~N, ~y
~ McPic
~wnrd P.
~nni~ P. Pr~st
Mr. T6dd Gerhaxdt
'Ci.ty o£ Chanharaen
690 Coulter Drive
'Chamhass~n, MN 55317
Contract. Award
Apple Valley Rec~-M~x Demolition
CP 94-1
'Deaz Mr. Gerhardt:
On Thursday, February 17, 1994, bids were received and opened £or' the above- -
referen~d project. The bids which' were received a.,r~'~ follows:
7.
8.
9.
10.
rll.
iekmhau er Excavating, hc. ·
Midwvat Asp~t Corporation ·
N~ Paving, ][nc.
Hoist Excavating, ~c.
'V~it and Company, Inc.
G.L. Contract_-;-g,
Towne Construction
.Steining~r Conm~etion comPany, lam
LeCenter Conm'urtion, Inc.
Kmske Caanstruction company, Inc.
Carl Bolander and Sons Co.
A~O~
$25,865,00.
$28,780.00
$29,643.50.
$39,631.00
$43,640.00
-. $44,780.00
' $45,2.60.00
$53,955.00
$59,0oo. oo
.
All bids weiz submitted' with propex bid gum-amams in th~ amount ;of at least
ten percent (10%) of ~ total bid price, witrh the exception of the bid Of G.L.
Conrract;ng, ~ which was ~bmi.'tt~ with a five peromr (5%) bid bond. .A
bid tabulation was performed and all bids were fouaxd.to be correct. A bid
tabulation summary sheaz is attached for your irffo~on. .-
Mr. Todd Gerhardt
February 18, 1994
Page 2
The bids received vary in price from $25,865.00 To $59,000.00, while the
Engineer's Estimate was $35,000.00. The low bid appears very competitive
considering the Engineer's Estimate, while the number and range of bids
received also reflects a competitive bid environment.
The low bidder is Wiekenhauser Excavating, I. nc., with a total bid price of
$25,865.00. They have been conta~ed regarding their bid, and they are
comfortable with the scope of work, the schedule and the amount of their bid.
We, therefore, recommend award of the Apple Valley Redi-Mix Demolition
Project, CP 94-1, zo Wickenhauser F, xcavazing, inc. for the low bid price of
$25,865.00
The proposed schedule for the project is as follows:
Award Contract ~)
Begin Construction
Complete Building Removal
Complete Removal of Footings
and Foundations
February 24, 1994
March 7, 1994
April 1, 1994
May 13, 1994
Please call if you have any questions or we c~n. provide any additional
information.
Sincerely,
BRW, INC.
~~Project, Manager
jBPI./lab
Attachment
ca:: File 2261A00
CHANHASSEN HOUSING AND
REDEVELOPMENT AUTHORITY
REGULAR MEETING
JANUARY 20, 1994
Chairman Bohn called the meeting to order at 7:30 pan.
MEMBERS PRF~ENT; lirn Bohn; Don Chmiel, Mike Mason, Chnrlie Robblns and Gary
Boyle
.MEMBERS ABSENT: None.
STAFF PRESENT: Todd Gerhardt, Asst. Executive Director
APPROVAL OF MINUTES: Chmiel moved, Mason seconded to approve the Minutes of
the Housing and Redevelopment Authority meeting dated December 16, 1993 as presented.
All voted in favor and the motion carded.
VISITOR PRESENTATION: None.
STATUS OF HIGHWAY $ PEDESTRIAN DESIGN SELECTION.
Gerhardt: Mr. Chairman, HRA members. Tonight Fred Hoisington is here to go through the
two concepts for the pedestrian bridge design. In there you have what is Scheme A and
Scheme B. Scheme A would include those costs and those elements with the u'ellis and also
with the larger center pier. Scheme B will include a smaller center pier and no trellis work
and I've outlined those costs for you. This item has gone to the Planning Commission and
the Planning Commission's recommendation was to go with ~heme A. They felt that the
aesthetics of this were much more enhanced with the trelli~ work and the larger center pier.
It allowed for landscaping to grow faster and quicker and...than without those two elements.
At this time I'd like to have Fred Hoi~ington go through those two schemes and show you
some photo imaging of how those are outlined.
Bohn: Now this picture looks like $tillwater.
Chnfiel: It really does.
Gerhardt: I apologize for that. Prom what I was told, they had prinmt up the colored ones
SO...
Chmiel: If I could just interject something. When we looked at this the last time, were we
not asking for some other aesthetic appearance to that bridge7 I think we, the comment that
came out was it looked like Stillwater or something to that effect Was there not some
Housing and Redevelopment Authority - January 13, 1994
discussion regarding that to come back with something a little bit different? Or was my.
Boyle: ...looked at the aesthetic value looking at the exterior more than the interior Don?
Chmiel: Yeah, strictly the exterior.
Fred Hoisington: This, based on my recollection, this is the bridge that was essentially given
approval, or recommended, suggested by the HRA without the pop-ups on the ends and the
center and with the smaller piers. About $80,000.00 difference in cost. The Planning
Commission on the other hand felt, and I don't know how we resolve these kinds of
dilemmas but the Planning Commission felt the bigger pier, which is a planter in itself and
that the plants grow up from the top as this one they must grow from the ground. So this
actually extends out from the bridge on both sides. It is in fact a planter as well as a support
and the trellis pop-ups were appropriate for this particular gateway to Chanhassen and
recommended that. The difference is that the pop-ups really cost almost nothing. They're
about $3,000.00 difference. The pier is about $31,000.00 difference. There's quite a
difference however. You can't even see it and that's one of the reasons the Planning
Commission didn't feel the space between the beam and the deck was important. But in this
scheme, wanting to float this, the architect has a space between the beam and the deck that if
you could look straight through it, you'd see air. You'd actually see this bridge almost
floating there in air. The fact is that where you are on the road, we don't see this space. It
really doesn't come into play and that, if you take it out, reduces the magnitude of size of the
smacture which means that you can drop about $45,000.00 total dollars out of the cost of the
bridge. The Planning Commission recommended that as son of a compromise. Maybe one
that you could consider to get the cost down but still keeping the general character of the
bridge intact. One other _thing that you could do if the trellises don't really make that much
difference, if you really felt strongly about it, you could reduce the size of the center pier
about another $35,000.00.
Boyle: But you could still cover that center pier from, I mean even though it's a planter on
top, you could still use the same concept to get vines growing up the center.
Fred Hoisington: You could. You could except Gary in this case the idea, and this was
really the first one which was created and then this one was a cost cutting measure.
Robbins: We're assuming that the code and safetyness on both are identical7
Fred Hoisington: Yes. No difference in that respect Charlie.
Robbins: And as far as the trellises, the pop-ups. Call them what you will. At the ends. In
Housing and Redevelopment Authority - January 13, 1994
other words, we can, no matter what combination of piers, you could put those with either
one? That does not matter?
Fred Hoisington: Oh, exactly. Really all we're, exactly. You could put those pop-ups right
on this bridge.
Robbins: Yeah, and you've not stated this but it's in the write-up. In the wriu~-up that was
done in terms of there was a question regarding the fence...I drove around. I've been, after
than the last few, after our meeting while driving on business I saw some, several bridges
that are mesh and the ones I saw were enclosed all the way around, i.e. they went all the way
around. To me, if you've got a, I don't care whether it be 6 or 16, if you've got a point
where it stops and shows open space and encourage kids to climb up on top of that. Throw
something off or dive off or bowling balls or rocks. Either go all the way around or just...
Mason: Yeah, you know that's uue but I think of all the ~y bridges downtown on
35-W. I mean none of those bridges are enclosed.
Robbins: Yeah they are. They all are.
Mason: No sir. No sir. The bridge by Wslirer An Center isn't.
Chmiel: Not there but on 35.
Robbins: I'm saying the freeway bridges. Where thc roads are, they:re all enclosed.
Chmiel: Enclosed. Encased. Yes. I've been up on them.
Robbins: I drive it every day.
Mason: Which ones are we talking about now?
Robbins: Lake Stmeu Or I should say on 31st is enclosed. 36th's ~losed. 42nd's enclosed.
46th is enclosed.
Mason: The road?
Robbins: No, the walkways. The overpasses. Where the walkways are.
Bohn: The bridge itself is not. The pedestrian pan is enclosed.
Housing and Redevelopment Authority - January 13, 1994
Gerhardt: ...and they're not. I mean I drove by yesterday, John and I and it's the one...
Bohn: The road is not but the walkway is.
Chmiel: The one that goes over 31st is completely enclosed.
Robbins: And there's been problems on that bridge by the way.
Mason: Well, we're also talking a little different area than Lake Street than Chanlmssen wo.
I mean.
Chmiel: I agree but kids are kids unfortunately. Give them a chance and.
Mason: Well yeah but, boy I don't know. The thought of enclosing that changes the whole
picture for me at any rate. I just, I wouldn't want to go on it.
Chmiel: I only look at it from a safety aspect.
Fred Hoisington: MnDot does not require enclosure. They said this design is a~c~table to
them.
Boyle: Does Scheme A include an enclosure?
Fred Hoisington: Gary, this comes up 8 feet The mesh goes up 8 feet and then there's
another 2 feet essentially on top of that that's open and the top is open.
Robbins: So the way, with the 8 foot that's stated in the letter, hypothetically a person could
crawl the 8 feet, and then you're in open space and dump a ball out or something.
Fred Hoisington: It's not inconceivable. You could Charlie. You could do that...unless it's
completely enclosed, even with the...I believe you could probably, a kid could figure out a
way to get up there and jump out of that as well.
Chmiel: Well it's the same thing that I looked at with vehicles going underneath that. Is
kids can take rocks, flip them up and over. Where they land, if it hits a car or not. They're
gone off that bridge and there's no way to eliminate it.
Robbins: And you see a lot of, I see a lot of youths using that bridge because you're going
from two neighborhoods. Going from where the Legion is across to where Hanus is.
Housing and Redevelopment Authority - January 13, 1994
Mason: Yeah. I'm certainly not going to deny a thing that's been said here but at what point
do we go to the ends of the world to protect people from everybody else? I rnea~
Chmiel: As much as you possibly can without causing any harm'to anyone and I'm not
saying, if that's where the...go, that's fine with me but to me I still see us, we'll save the...
Boyle: I do too and I thought we discussed this quite thoroughly last time.
Bohn: Nancy, did you have something to add?
Nancy Mancino: Is this the pedestrian bridge?
Chmiel: Yep.
Nancy Mancino: Fred what has happened to our downtown. You know the beautiful great
Loring Park and the Sculpture Garden. They don't have meah there and there are people and
there are children and there are actually they take classes down there and everything...Have
you heard?
Fred Hoisington: That bridge is art. A piece of an in itself. It was very delibera~y
designed accordingly. And so-mesh that would have been totally contrary to the design. It
simply would not have WOlfed. Nancy, I haven't heard anything but I wouldn't be surprised
and there could be, could have been perhaps some problems. I think you run that risk no
matter where you are and I don't think it makes any difference if you arched. I think the
only way you can totally preclude kids from going...is to close it in entirely. That will have
detrimental affects on the way this bridge looks.
Nancy Mancino: ...I was just wondering because I was concerned about what level we're
going to be going...because usually when something like thi~, there's been a problem like that,
journalist pick up on it fight away and we all hear about it and I haven't heard anything.
Fred Hoisington: I haven't either. If it is, I think it's relatively minor...but I haven't heard
anything on that.
Robbins: Fred? Just on a conunent that you had made regarding the covering of the bridge.
I guess not being a real an person but if you're driving here, I can't see how you can tell if
the top is covered or not. I n-ean it would be,
Fred Hoisington: Well, if you're driving generally from where you were bros..that's one
thing. When you get up to the bridge you will see it. When you get up close to the bridge
Housing and Redevelopment Authority - January 13, 1994
you will see it but from here you won't see it.
Bohn: You have to have a roof in your car. A glass roof.
Fred Hoisington: No. I think you'll definitely see it from your windshield at a ~ point.
Bohn: You will be able to see the roof?
Fred Hoisington: Sure. What it will do is make the grades look boxier and it's purposely
designed to have an open space up there and it will enclose it and it will make it look heavier
than it does currently and it will make it look a lot...
Gerhardt: This is the best one if you can go in there, maybe we could do a video image of
showing this thing with the mesh all the way around it.
Fred Hoisington: We could.
Chrniel: Well that's what I thought we were going to see.
Bohn: Yeah, I did too.
Chmiel: That was my understanding when we left last time.
Bohn: When we left a_~ter the last meeting that's what we thought we were going to see.
Fred Hoisington: I didn't understand that. That's my fault, ff that's the case. What we can
do is we can have them do some video imaging to see what it would look like in that respect
and then...so that would be just frae.
Boyle: Rather than have it boxy, what if it was rounded maybe at the top or maybe the top
could be open but it's still round rather than the square? Is that a major?
Fred Hoisington: You know what we could do is ask that question Gary because if you
rounded it at.you still have the open space in the top. So yeah.
Boyle: It would round and then you had a 3 foot opening at the top, I don't know.
Fred Hoisington: Well, let me ask the question. We can see what the possibilities are, sure.
Gerhardt: This is what I think 35-W, at least one of them looks like. You know you've got
Housing and Redevelopment Authority - January 13, 1994
the, what I'll call is the bird cage. When it goes like this. The mesh goes and stops like that.
It looks like the things are completely enclosed. They come up and they do this little loop.
This is open inbetween. This is 35-W. One of them I noticed had that. I don't know how
many there are along there but this is open through this section and so I would think if kids
are going to throw the rocks, is going to have to really loop that thing and it's going to hit
this side or that side so, but I'll take some pictures of that m~d show you what that really
looks like.
Boyle: You know it sounds like you're being kind of picky but for the safety factor of it, if
somebody did want to throw something over and hit one car. A rock went through one
windshield and we'd all feel a li~e.
Mason: Well, if somebody wants to throw something, they're going to do it anyway. You
know I mean rocks from the sides of the road. I mean how big are these mesh links7
Fred Hoisington: They're about the same size, exert they're not ~t/smond shaped. They're
about the same size as a normal chain link fence.
Mancino: Teenage...cut across.
Mason: Well yeah, I mean you could take that to an extreme. If somebody wants to do it,
they're going to come up there with a bolt cutter and throw something through there anyway.
Boyle: Most people that do it, do not do it for that., maybe it's ~tu.
Mason: I guess maybe I'd like to see some statistics on numbers of, how many times a rock
damages a car thrown from a bridge in the State of Minnesota you know because I personally
don't see that. I understand what's being said about the safe~ issue and I'm not discounting
it. From the safety standpoint I'm just thinking that the chances-are so minimal of that
happening that I don't know that we need to be worried about it. I guess that's what I'm
saying.
Bohn: You don't have to be worried about it if it's enclosed.
Mason: Well yeah, and that's kind of the, to take that analogy. On NPR tonight they were
talking about all the heat and electric problems they're having out on the East Coast and
they've had to have some temporm~ black-outs for ~ minutes at a time and some people are
up in arms saying, we need to spend millions of more dollars to get electricity up to dale but
then the comeback is look This happens once every 20 years. We don't have to spend that
kind of money and make that effort because it's such, it's essentially a non-existent problem.
Housing and Redevelopment Authority - January 13, 1994
Bohn: How much more money are we spending for the roof of this thing?
Mason: I think this is overkill and I want to see some more information on this before we
put, I mean it is. It's going to look like a prison in there.
Chrniel: And I don't disagree with that. But the pros and cons to that issue and the question
you rose as to how many vehicles have been hit by rocks from those, I don't know if they
even have any stats on it. But I just look at that and I think about kids in themselves and
they can stand on the side of the road and throw apples at cars too, which I know some kids
have. And I remember somebody saying that at one time but you know, it could be a
problem. I would like to see us you know take a look at that to see. Maybe find out what
those stats are and see what that appearance might be as well.
Mason: I think Mr. Meyer, in his last sentence here about the Chart pedestrian bridge in a
letter to Fred. It is my opinion that fully enclosing the bridge will give it a claustrophobic
and fearful character which is at odds with the city's intentions. I mean we, yeah. I guess I
think that does fly in the face of what we're trying to do but Todd, any suggestions on how
we could find out?
Gerhardt: Well I've got sort of a...idea and I'll come back with some estimates...on how
much it would cost to enclose the bridge itself and...I mean looking at the pictures...
Mason: Well how would you fred out about rocks being, I mean damage from cars via over,
you know things being dropped on and things like that. Any idea where you'd go?
Gerhardt: I'd have to go to Scott and see if he couldn't call the State and see if they keep
records on incidents like that.
Boyle: I guess that's important. I don't know how important that statistic is going to be.
It's a one time deal. If you did it once, it's a possibility. We could get all sorts of statistics
on it.
Chmiel: If you remember, many years ago it could be done from cars as well. Where
someone threw a cement block off the end of a mack, a bunch of kids and it did kill the
passenger in the vehicle that was behind and that happened over on the Mendota Bridge so.
And I'm not saying that's going to happen but just on a precautionary aspect.
Gerhardt: Yeah, bridges are difficult I mean you can sit there and look fight over the edge.
It almost begs you to spit on cars or throw something over if you've got it. You know this
Housing and Redevelopment Authority - January 13, 1994
thing, you've got to really heft up a big rock to get to the Urp of tha~ thing. At 8 feet, or
have a buddy toss it up to you.
Boyle: I think that's a very good point, h's going to discourage somebody...of any weight at
all.
Gerhardt: And I would hope that if some kid, you know...ancl I just can't imagine some kid
doing that. I mean he really had to plan this thing out and he's got to have some other
problems if something like this is going to happen. I mean you can't...
Bohn: How wide is that bridge?
Fred Hoisington: This one, 12 feet.
Bohn: And the opening would be 3 feet7
Fred Hoisington: The opening on the top7
Bohn: Yeah.
Fred Hoisington: The op~ning is about 2.
Nancy Mancino: My only other suggestion would be that if you are really, really concerned
about that, that you may want to start this design over again. Maybe that was not a design
parameter when the designers designed the I~lge that it needed to be so enclosed bex~use I
don't think they would have come up with this particular airy de~gn...if that would have been
a high priority in starting the design. I don't know.
Gerhardt: Well we started to look, I mean the next step you're talking about doing is either
kind of a pitched roof and the State won't allow you to pitch the roof because of the snowfall
off the wp of the pitch onto cars as they drive ~th. So that's when we had to
abandon what was the covered bridge idea. And that's, now with that mesh up there, that
could get covered with snow...so I'd like to do the video imaging and I think we can come up
with some nice things that, there's a lot of limiu~ons on this. The Slate again is controlling
us on what we really can do on this. I mean they've got this thing, the reason the price of
this thing has skyrocketed is because you can't go in there with a pre-fab pedestrian crossway
and we felt we had a really nice, pre-fab pedestrian walkway. And MnDot's regulations
won't allow us to use that type of design. And they're dictating. This thing is going to last a
long time. This thing is one strong strucUu~ that we're putting in and Nred can auest to this.
Housing and Redevelopment Authority - January 13, 1994
They've monitored this whole review process. And if they're not concerned with kids
throwing rocks over the edge of this thing you know, that has something to say too. They're
going to be more concerned. That's their liability is that road down below.
Mason: That's a good point.
Boyle: That's a very good point. Has handicapped access on or off of the bridge been an
issue at any time7 Can I quote your...
Fred Hoisington: ...ADA standards.
Gerhardt: And that's one of the other things. We have to bring in some substantial fill over
by the Red-E-Mix site to get that sidewalk and grades for the downtown access too. Maybe
ff Charlie James has some extra fill on his site...
Bohn: We don't need a motion or anything on this do we?
Gerhardt: I would like, it's up to you. I mean if you want to approve the motion for one of
the schemes and add the alternative that we look at enclosing the structure. 1'11 be back to
you, if you feel comfortable in doing that. That's your call. Right now the two schemes do
not take the structure to be enclosed.
Chmiel: That center support structure Fred. And the size comparison with the cost
differences being that $45,000.00, right?
Fred Hoisington: Which scheme Don?
Chmiel: The center support. The mid part of the highway. As you were mentioning, the
support here as opposed to some of these. Now is it a distance, shot difference or are they all
the same in size?
Fred Hoisington: No. You mean this one?
Chmiel: Yes.
Fred Hoisington: This one is the big one and much wider in this direction. There's about
$31,000.00 difference between them.
Chmiel: Okay. From a standpoint of a u'uek going at a high speed. If he were to have hit
one or the other, which of those two, this one would have a better chance of sustaining any
10
Housing and Redevelopment Authority - lanuary 13, 19o2
real problems?
Fred Hoisington: This doesn't show it. This image doem't show it but there will be.
Chmiel: There will be a guardrail around it.
Fred Hoisington: It has to be there.
Chmiel: Yes, I realize that
Gerhardt: In either of the two concepts.
Chmiel: And I just stop and think about some of the stmcttual problems that they've had in
California. I don't expect any earthq~ but I'm thinking of trucks hitting them, is what
I'm looking at.
Fred Hoisington: Actually it's kind of in~g because this one actually has a door and
it's open so I suppose you could sustain more damage is something did hit it than this one
which is a little bit more solid.
Chmieh Well that's one of the points.
Bohn: The door goes to where?
Fred Hoisington: Well for some reason there has to be. Either they have to fill it entirely Fun
or they have to keep it open for some purpose, and if. Lan'y were here he could explain that
to us but I'm not exactly sure what it is. This one is a solid sU~un~ There is no opening
in here at all.
Boyle: You got a door on there so just in case that Iruck goes through, he can drive fight
through them.
Mason: There you go.
Boyle: You know they've really batted this around for a long time. I guess, and we could
look at a lot of different concepts and we could carry this on for another 2 to 3 months. The
Planning Commission kind of liked the idea and they put height on this thing is not an bad.
That's going to take some major involvement to get anything heavy over that to throw off. I
personally don't know if we need to rake this any further. I kind of like Scheme A and I
guess I'd go along with what the Planning Commission recommended and move this thing
11
Housing and Redevelopment Authority - January 13, 1994
forward.
Mason: Is that a motion?
Boyle: I'd make it a motion.
Mason: I'll second that.
·
Boyle: That we accept Scheme A.
Bohn: It's been moved and seconded.
Chmiel: Discussion?
Bohn: Discussion.
Chmiel: Is that to move ahead and have them proceed without seeing the imaging as to what
we were looking for as well?
Boyle: That's my motion.
Chmieh Okay.
Boyle moved, Mason seconded that the Housing and Redevelopment Authority support
the Planning Commission recommendation and select Scheme A for a total project cost
of $512,500.00. All voted in favor, except Don Chmiel and Charlie Robbins who
opposed, and the motion carried with a vote of 3 to 2.
Chmiel: And my reasoning is to just make sure that we're covering as we should.
CONSIDER APPROVAL OF A PRIVATE REDEVELOPMENT AGREEMENT WITH
CHARLIE JAMES.
Gerhardt: Mr. Chairman, HRA members. In your packet is a privau~ redevelopment
agreement between the HRA and T.F. James Company. There are some minor changes to
that agreement that occurred after a meeting I held with lohn Dean and Mr. James' legal
counsel yesterday. Basically what Mr. James is proposing here is 106,000 square feet of
retail and office space on Lot 4, Block 1, West Village Heights 2nd Addition. With that,
there's only one area that I'd really like to key in on in the changes and it's not as~ng the
HR for any additional dollars but what we're doing is changing the dollar amount...revenue
12
Housing and Redevelopment Authority - lanuary 13, 1994
amount which in turn will change the dollars for the plan breakdown. Now let me explain
how... Over the next 4 years the possibility of _this retail development paying more in taxes is
pretty good and the way lohn Dean now puts these private redevelopment contracts together,
he sets that dollar amount. Right now that dollar amount is set at $581,553.00. With that,
that is based on taxes that that fncility would pay today on a value of $5 million. If you look
at the proposed taxes on Attnchment//3, which shows that the proposed development will pay
$308,475.00. That's based on taxes today and does not take any increases over the years. So
under our policy, Mr. James can collect 3 years worth of increment and that 3 years worth of
increment would occur in 1996, '97, '98. What we need to do is to modify that dollar
amount to take into account...he will not get any of those additional taxes up and above what
I've estimnted on the sheet. So when I put these together, I'm conservntive and with the
money.., thnt is the cap so we are not giving him anything mare. What you're doing is he
pays mor/, he will get more back. Am I clear on that7 So what I'm suggesting we do is to
change the $581,553.00 to $767,853.00 and that tnkes into account roughly about $62,000.00
a year in possible increase in taxes. How we did that was, the County Assessor could view
this building as having a true market value of $6 million so we calculated taxes on a $6
million facility and added those additional taxes on basecL..tax capacity. So it's nothing .out
of your pocket. Basically thc bottom linc is, if Charlie pays more in tnxes up and above the
308, we're saying he can have those during the years '96, '97 and '98.
Chrniel: Really what you're saying is just if the assessments are, if the Assessor judges that
property to be more than it will raise to what it would be we're looking at.
Gerhardt: $5 million is the minimum. And other things could be that the city one of these
years may raise taxes and Charlie will pay more in taxes. And more than likely the County
and the School District will continue to raise taxes and pay you more in taxes. And what
he's saying is he wants to have the option to collect those and with my conservative numbers,
that limits...up and above the $308,000.00 that I estimated.
Chrniel: Is there anywhere within the conlrnct we can make that clnrification?
Gerhardt: If your motion would be to just modify my number of $581,553.00 to $767,853.00,
that would be more than adequate.
Boyle: And your question was, is it in the contract Todd. Was that question answe~d?
Chrniel: Would it be within the contract so thnt referral could be made.
Boyle: And you're saying yes.
13
Housing and Redevelopment Authority - January 13, 1994
Chmieh By saying this and by adopting that kind of motion, you're saying that...
Gerhardt: If you look to Exhibit D, which is the Limited Revenue Tax Increment Note. It
calls for $581,553.00.
Chrnieh What page is that Todd?
Gerhardt: It's one of your attachments. D-1 on page, it's probably the first.
Mason: Schedule D, D-1 ? It's right after Exhibit A?
Gerhardt: Yes.
Mason: Which is right after the redevelopment contract.
Gerhardt: It says United States of America. State of Minnesota. County of Hennepin.
Mason: Too far. You're too far. Back up. Yeah.
Gerhardt: We're changing that dollar amount to $767,853.00. And then on page 10 of, in
front of there about 5 pages on page 10 of the Private Redevelopment Contract, Section
4.2(a). You have the $581,000.00 in there and that would also change to $767,853.00. Those
are the two areas of the contract that would change.
Boyle: Will that change 4.2(c)?
Gerhardt: Yes. And instead of the total annual tax increment payable to the redeveloper as
land write down, the $193,851.00 would change to $255,951.00 and that's just basically the
$767 divided by 3.
Robbins: Todd, one more comment. Under thc recommendation...it has staff recommends
approval of the style and the redevelopment agreement. I'm assuming the redevelopment is
our standard household approved, what we've used before. I thiuk this is the ltl-st time we've
seen it in this context where we also are approving the architectural style at the same time.
Because I'm not sure we've gone through that process. That doesn't mean what I've seen
isn't good. That isn't the question. It's more of to follow suit with the rest of the plans in
Gerhardt: Just to touch on that one. I havc asked Charlie James to be present tonight that he
may go through this site plan in detail for you to highlight some of the style that he has
14
Housing and Redevelopment Authority - Sanuary 13, 1994
incorporated into his building. Sornc of thc changes that the City Council and Phmning
Commission have asked him to make and meeting some of those needs of the community and
matching up to some of thc styles in the downtown area. If the Chairman of the HRA at this
time would like to hear from Mr. James, I think hc is prcpared to make that presentation.
Bohn: Mr. lames.
Charlic lames: Good evening. I guess before we get onto the project desi~; I just wanted to
perhaps offer a few more points of clarification on modification to the contract that's being
proposed. Number one, I want to make it clear that we're not asking for anything different or
any changes or anything more than is what policy of the I-IR. What the concern is is that
we haven't gotten our guaranl~xt maximum price from Kraus Anderson yet and we're
concerned that to the extent that this project ~n.~ over or that the County Assessor comes up
with a different valuation than what we anticipate, that by fixing these numbers we wouldn't
be able to, once ~ thing is agreed W, we wouldn't be able to adjust that. And since this is
a pay as you go progrmn, the City is not out of pocket on anything. I mean basically if you
don't get the money, we don't pay the increased amount. What we tried to do here with Mr.
Dean is basically allow this to be a fixed contract but to have them in as sort of a moving
formula and that formula is nothing different than Todd has explained to me is what is your
standard policy for everyone in thc TIP district or your most recent policy for everyone in thc
district. So I just want to make that clear. We're not here asking for anything more or
anything out of the ordinary and that's what that modification is about. Tonight I have with
me Tim McCoy. He's the project architect. Tim has his own firm. He's a graduate from the
University of Minnesota School of Architecture and also has a Masters Degree in Architecture
from Harvard University and if you'd like, I'm not sure what the format should be here
tonight but if you'd like, Tim can perhaps spend :5 or l0 minmrs, or however much time
you'd like, to go through all the elements of the project and basically explain to you how he
got to where we're at and how we've token into consideration the Vision 2002, the Highway
5. The proposed Highway :5 report and plan and other aspects of this project so.
Bohn: I'd appreciate that.
Charlie lames: Okay, Tim.
Tim McCoy: Good evening. I know that thc Mayor and Councilman Mason have already
been through this overview so if they'll indulge me, I'll go through it.one more time in m-ms
of how we arrived at this particular design and site plan for thc project. When Byerly's
initially became inmezted in this location as a potential site for the new store, what we had
done was we had sat down with them with Charlie lames and looked at a number of
almmadve locations on this total 13 acre site p~:~.l with them in terms of orientation of the
15
Housing and Redevelopment Authority - January 13, 1994
building and sighting and so forth. What the relationships were to the access and internal
circulation and parking potential and any type of relationship to the retail component of the
project that would be added. And I think early on we decided that we would locate the
building up in this northeast comer of the site. Up in the broadest area of the site and orient
it down to West 78th Street. By doing that and locating it in this particular area we actually
aligned thc entry of the store directly with the center line of thc existing curb cut off of West
78th Street which would allow us to make some type of special feature out of the entry of the
store. There aren't a lot of areas where there's a lot of glass in a supermarket that you can
really make something I think or give it some type of special architeaural treatment. At the
same time we developed an employee parking area over to the east side of the supermarket
and along the north side, adjacent to the relatively steep berm here that goes up to multiple
family housing to the north, we developed a service drive that goes all the way along the
northern edge of the property and takes care of all the new service and loading functions to
the project And in this particular location we had studied a number of different locations
relative to the store in terms of the drive thru grocery pick-up area. We looked at it on the
west side of the building. On the east side of the building. Byerly's decided that this front
location on the south side of the building is one that best suited their needs and they felt
worked best for their traffic patterns around their store. One thing that that's enabled us to
do is to attach the retail component of the project directly to the supermar~t and in planning
some of the major features of that, or we kind of pinched down the center of this so we could
extend our loading area at the north side a little bit. Develop a little mini-pedestrian plaza on
the south side of the project and this entry, just step the building back out since the Byefly's
is set back quite a ways because of the drive thru pick-up area. The third major component
of the project was the commercial budding which we pulled down to the location closer to
West 78th to try to establish a little bit of a relationship with the street and essentially break
up this broad expanse of parking and the supermarket retail development rather than putting it
up as one more element on the west side of what's already a fairly long structure. And we
worked with the staff quite closely throughout this process in terms of trying to respond to a
lot of the concerns that they had in the staff report and just on a kind of an informal basis
and also the considerations of the Highway 5 corridor overlay study. The landscape
consultant report and so forth. We're showing this from our landscape plan which is now in
it's sixth revision since it's initial submission on November 1st. And some of the things that
will be done is we've tried to develop pretty much of a continuous buffer or screen up at the
northern boundary of the site. Those are predominantly Colorado and Black Hills spruce
trees and we've interspersed. I think we've got about a dozen white oak. We've got 16
white oaks up there also which will hopefully relate to the Oak Ponds development to the
north. We're developing some lower level screening up there too. A sumac and so forth in
that area. Trying to maintain pretty much the rhythm of the city tree planting along Kerber
and West 78th Street. One of the major changes that we've made in the landscape plan since
we met with the Council is we had 3 large internal landscaped parking lot islands and we
16
Housing and Redevelopment Authafity - lanuary 13, 1994
were responding to about 3 different sketches that slaff had proposed in lmms of means of
dispersing those islands and developing some more overstary trees within the pazking lot area
so that at maturity we can get some ~ full shading nnd coverage of the parking lot are~
In terms of the design of the buildings themselves, The design of the project was really
driven by Byerly's in terms of establishing the themes and images for the project and so
forth. I mean once we got a lot of these sit~ elements fixed, what we did is we went through.
We were given essentially a fixture plan, a ~ plan for the Byerly's store and then
we're going to try to make a building ar a piece of arcMtecun~ out of that and I think most
people generally tend to think of Byerly's as something that has some pretty anonymous types
of buildings and so forth. You know it's pretty much background buildin~ although they're
all nice brick stru~ and so forth. There's not anything that is really highly distinctive
about them. And that's I think partially just due to the type of philosophy that they'vc got.
That if they've got a design philosophy, they want to have a building that wears well over
time. Something that will look good 20 years from now and so forth and would rather not be
on, maybe not being on the cutting edge of design ar whatever but they would, are just as
interested in how their project lasts over time as what it looks like the day it opens up. So
we had gone through probably about I'd say 7 ar 8 different types of schemes in terms of
what the visual image and architectural treatment of the store would be and we finally settled
on somethi,~g that had the arched openings that you see over on the-board to. the fight over on
the chairs as being probably the most distinctive visual feature of the building. What we've
tried to do is develop something that would have some classical motifs in it and so forth
using arches and barrel walls and yet still remain somewhat conservative and this was the
scheme that they preferred the most. And this is even one of the number of variations on the
arched opening and arched drive thru grocery pick-up areas. We ranged all the way from
arches all the way across to a combination as we've got at the present time. It also in this
scheme what we're doing is we're trying to vary the plane and the pattern of the bricks
somewhat. That is some of these large blank wall areas we've actually recessed the brick
panels to give them a little bit of relief. We've got a nnm_her of different bands of different
types of...and different relief in the brick and so forth. And this will be the first Byerly's
store in the area which incarporates...mam'ial outside of the brick in any kind of significant
way and we're proposing some use of Kasoda stone in here as trim and little feature type of
elements within the project. It's the same stone that they used on the Norwest Bank Building
in downwwn Minueapolis. And the store will be brick, all the way nround. It also has, and
we've got some elevations that I'll get out of the east elevation facing Kerber Drive. That's
where the restam'ant's going to be local~! and we're going to have arched windows in there
which will be the first use of windows that they've used in any of the restaur~ts in any of
their stores locally. And as I mentioned, the Byerly's design pretty much drove the theme of
the rest of the projects and we tried to carry throu~ some of the same arcade treatments on
the south side of the retail project. The arched openings once again. One of the things I
forgot to mention is that we're stepping out the brick at the top of all of these buildings ar
17
Housing and Redevelopment Authority - January 13, 1994
corbeling it out to get a little bit of a cornice line at the top of all the structures which is
probably a little bit difficult to see from your distance at the present time. Since the site
steps down to the west, it enabled us to develop a two story retail portion on the western
most side of the site which will maintain the same height as the Byerly's store. So one of the
things we're trying to do is carry over these bandings of dctail and parapet heights
continuously through the project so that as the retail steps down, we end up still carrying
some of these lines all the way through the proje~ The most notable feature on this retail
board is the clock tower down here which aligns once again directly with the center line of
the western driveway coming off of West 78th Street. That's the main entry drive to the
Target store. And what we tried to do there was essentially take all the service functions, the
toilets and the mechanical spaces and so forth and the elevator for this two story western
most building. The upper portion probably being office use or service types of business.
Dentist or lawyers or whatever the case is. And we put the elevator in that tower element.
That's actually the elevator lobby that you're looking at in this area. This little square fight
down here. And so at night hopefully it's going to be a very transparent type of element
that's lit up that you can see all the way from the front of the Target store and conversely in
the day when you get off the elevator on the second floor, you'll be looking through this
glass wall out to the south and so forth. So we tried once again to take a couple of items.
The large circular opening at the main entry of the Byerly's store and also the elevator tower
down in the western end of the site and...And although we do not have a specific user for the
free standing commercial building at the present time, we do plan on trying to carry over the
same type of arched entry theme and the same type of brick detailing, coursing and so forth
in that particular project and we do have a preliminary drawing of that that wasn't as
enthusiastically received, and part of the reason for that is we rely don't have a client and it
was just kind of a one shot take on u'ying to get that impression of what that might look like.
But I think that probably gives a fair overview and I'm sure you've got a number of
questions related to how we developed it and how we arrived at some additional decisions
that we made. I've got one particular question in mind I guess that I'm expecting.
Bohn: Have you thought about a gabled roof?
Tim McCoy: Yes, and that was the question as a matter of fact. It wasn't because we didn't
explore that or didn't offer that to Byerly's. When I mentioned that we had probably done 7
or 8 alternatives. As a matter of fact we did more than one related to that, and that was just
something that they preferred not to have for their store in terms of that being, as a matter of
fact they didn't like it at all. One thing that I should also mention is that, although it's still
within the same conservative vein as most of Byerly's stores, they did want to make some
type of departure in this store from what their standard design would be. And in travels
around the country they did take photographs of other types of retail projects and say these
are the kinds of the elements that we like and so forth. They saw this and thought this looks
18
Housing and Redevelopmeat Authority - January 13, 1994
nice and we tried to incorporate some of those type of ideas. But the short answer is, they
didn't like it and it d/dn't make a great deal of di~erence w us. One of the things that I
should mention in terms of trying to apply the gabled roofs to structures of I/tis size, which
are 60,000 square feet plus. Almost, I think we're up in about the 99,000 square feet of
continuous development here between the Byerly's and the relail space. Is that it's often
difficult in these kind of large box users to essentially what you're doing is you're treating,
treating the exterior 10 or 15 feet in ~z~ns of u'~g that type of roof form just because of
the types of pitches that you need on the metal roofs and so forth. $o in some respe~ some
of the things end up being more or less decorated boxes and I'm not, I meau I've done those
myself and we have at least one of those under construction fight now. There's nothing
inherently wrong with that and at the same time, I guess within some of the parame~s that
we were working in, we lried to do the best job that would meet the interest of all the parties
involved and we're hoping that we've done that and we're hoping that we've oreated
something that will be a real asset to the community over time and so forth. One of the
things I feel that's a little bit unfommate about that provision related to the use of the pitched
roofs, and I think that's a specific provision now of ~ Highway 5 corridor overlay district,
that it's unfortunate that if that was the intent, that it wasn't able to be done 20 years from
now. There's so much with the character or whatever. There's so much of the other in the
area that it's, I guess a lot harder to make it a consistent theme as I'm sure is the intent
behind that.
Bohn: How high are the parapets7
Tim McCoy: The parapets are, the top of the parapet is 26 feet 4 inches at the high portion
and we are going to be raising these parapets up. These are shown at 20 feet right now and
we're going to move those up to about 24 feet just because we've done some additional
studies of the building and some of the mechanical equipment and so forth and would like to
raise those and that was one of the things that Byerly's had a little bit of a reservation about.
This dropping down this much betwee~ this element and kind of isolating these two end
portions from the larger center portion so we are raising that up to something that will be
below this crown that will be in there but we're up at 26 feet 4 inches. So we're essentially
talking about a minimum of about, our beating elevation and we haven't, we don't have
enough mechanical fight now to get it precisely but it's going to be either the top of the roof
elevation is within 4 inches of 20 feet. So we're talking about a 6 foot parapet at the front of
the store.
Bohn: What kind of screening are you having around the mechanicals up there?
Tim McCoy: I guess we haven't determined that at the present time because we haven't
picked the specific equipment and so forth. I know one of the things tim we have discussed.
19
Housing and Redevelopment Authority - January 13, 1994
I know just in terms of local, they haven't sized all of the loads and so forth. For instance
for some Of their large units, they haven't decided whether they're going to use one. One
rooftop unit to service the particular area or use two smaller ones for that. I ~ there's
some deficiencies either way. I mean it's more inexpensive to go with one unit but then
you've got problems if there's ever a breakdown and there you're without any kind of service
for that area at all. But in the elevations that we've got, non-color we've got some of the
rear elevations of the store and I know in one area between what is the larger mezzanine at
the receiving area in the back. We've already decided to raise the parapet to the same height
between there and thc second level office there. I know that's kind of hard for you to
imagine but just because we know that more of the mecha~¢al is going W go over on this
western side of thc store. We're going to u'y to place it as close as possible to where our
second floor office area will be. The office area, and maybe could you get the board that has
all of the rest of the elevations on it. It might be easier, like I say, since I've been looking at
this every day and to...that one will do. Here's once again the restaurant area facing Kerber
Boulevard but what I was referring to was there is a second level office area on the western
portion of the building that goes up the full height and thc roof over the store is lower than
that. So what we've been discussing with the engineers is trying to get as much of the
mechanical up against the roof or up against the boundary of the second floor as possible so
that will be more or less of a natural screen to the west and northwest. In some of the
preliminary sections that we've cut through here, and this will be a little bit difficult to see
also. This is actually behind the Byerly's store and this is the relative elevation of the
townhouses that are up there fight now. The first floor is at 995 of the townhouses and our
top of roof fight now, not including the parapet, is at 998 up there and the top of the parapet
as we had plalmed it in here went up I think 5 1/2 feet above the first floor here. We've got
a more severe situation behind the retail space farther to the west as the grade goes up. But
that's I guess to our benefit that we'll have that second level office area on the west side of
the Byerly's store because that will help to screen the roof from that side. From I think that's
the Oak Ponds development But I guess our intent is to try to do what needs to be done
because I know, just from the standpoint of we do predominantly retail and I know just from
thc standpoint of thc budget that wc've got to work with is a...greater budget than we've had
to work with on a retail project before of any size. And I know how much Charlie wants to
do a good job on the project and so forth and we don't want to have a project where we try
to dcvotc all that investments and efforts towards doing something as good as possible and
then having something where we're looking at our building with people or other potential
clients or photographing it or whatever the case would be and saying, see the rooftop
equipment up there. We spent weeks and months trying to develop all the details for this and
we've got something that looks like it's got little units sticking out of the top of the building
and so forth. And in the same token, in terms of screening between this project and the
multiple family housing up to the north. We're interested in screening that not just from the
standpoint of saying, well let's see what we can get by with the city to screen that because
Housing and Redevelopment Authority - January 13, 1994
looking at this from an elevation out on West 78th Street, you've got some fine multiple
family housing but we don't want to drive by or look at this building out from West 78th
Slreet and have it look like there are wwnhouses growing out of our roof either. So we
would like to have a nice green background on the project also.
Robbins: A question. Just from the other centers or strip malls that are in the locality of
Town Square, Market Square, the new bank~ As Jim was saying about the roof. There's also
the architectursl style has been a little bit angular involved and with a little...of the teal green
shall we say. Of those colors. This to me, as being a lay person, looks different than that.
V~filc it's a great drawing. It's a wonderful stare by the way. It looks diP~t. Is there
any way of kind of combining any of that or doing something to make it should wc say
compatible to what's in town now?
Tim McCoy: ...your coming directly from east of this pwpeny starting down at the Fire
Station and so forth and in terms of some of the, I mean these arc more or less recfi~ear
types of buildings and we've added some of these little stone features up he~ to be...with the
fire house and so forth. I know what you mean because it is different than what most
cornrnercial retail architecture that you find in outlying ~ these days. And I don't know
exactly what we do. I ~ I know Byerly's is looking to use a little bit diff~t brick than
the standard kind of chocolate brown. I mean they want something, it's probably not going
to be this red. That's just a matter of the pencils that we had but something that would be a
little bit livelier and that hopefully incorporated some of the stone malmfials and so forth but.
In terms of other types of colors and things, I think it's possible that we're probably limited
by doing that- I mean I guess I've developed, and after working on this over the last few
months pretty much internalized an image of what this is going to end up being and I think it
will be pretty nice. One of the things, as I have pointed out, is we've got a number of
planter types of things adjacent to the bnilding and so faith slong the front of the wines and
spirits and raised planters...But I agree. It is different and.
Charlie James: I'd say that we probably relate more to some of your municipal sUuctures in
town. Some of the elements that you've incorpomted...made reference to the fire hall and so
I guess I understand that we do fit in. I think that what mak~ this project maybe stand out is
the fact that it has exceptional quality and exceptional design so I think we stand heads above
and maybe this is more of an urban concept, or the finishes that we're showing on this
building, they're not consistent with painted block like the Target but does that mean that we
should build a stmcV, u~ out of painted block. I mean when we first came in, at that time the
landscape ordinance was 5%. We came in with 8~0 and now God knows, I lost count after
the last time we were here with all these things in the parking lot- So I'm going to say
something maybe a little out of line here. I mean ff we have a hard time relating to some of
the other thiugs in town, I guess it would be because, at least I'd like to think maybe we're,
21
Housing and Redevelopment Authority - January 13, 1994
the difference is that we're a little better quality or higher standard finish and that sort of
thing so. I don't know, I'd hate to see us...building down you know to, I'm sorry I shouldn't.
But I guess what I'm trying to say is, I think there are elements in town here that we do
relate to and I think we relate to everything on our side of the street. The bank, City Hal1,
the fire stat/on.
Boyle: I think it's got a lot of class. It's very excellent" Nice building.
Charlie James: We could paint the brick.
Chmiel: I think what Charlie is saying, and Charlie is saying, is maybe we should have
started with this project. Although I like what we have downtown. But this is going to be a
compliment to the balance of downtown.
Mason: Definitely a compliment.
Boyle: It's be very difficult to try to put the pitch roofs and some of that to try and make
this look like some of the things across the street.
Chmiel: Put your paintbrush in your back pocket Charlie.
Boyle: ...Charlie is that we like this better.
Mason: No, this looks and I do appreciate the time and the effort and I quite honestly can't
wait to see it happen. I want to get going on this.
Chmiel: When are you going to start digging, do you know?
Charlie James: Well originally we came in here and thought we were going to be
conventional construction with block and what the schedule is now is we're going to go with
tilt up panels and then put the brick on in the spring when we can control the environment so
the biggest concern I had was having this building literally under wraps because under the
previous scenario, I was in here trying to get a grading permit. They would have had to
scaffold up to the block. Cover that and then they had to put the brick on at the same time
because otherwise ff they went onto the block and then they'd come back to these scaffolding
twice and...twice and so then you'd be putting the brick on under wraps and there's a lot of,
there is a word for it...Brick, under different, you want to make sure that the mason can get
back far enough so that he can see how the little tonalities or whatever in the brick are
working out fight and then also that you're mortar is going to be, that can turn different
colors depending on the temperature and the heat that's supplied so I was very paranoid that
22
Housing and Redevelopment Authority - January 13, 1994
they'd limally pull the wraps off this thing in the spring and it'd look like somebody in a
zoot suit you know. Oh my God, what have we done. So the schedule now is to go flit up.
You get the basic structure enclosed so we can be working in there and bnilttlng out the
interior and then we're going to come in the spring, when we don't have to...and have more
control and thcn hang all thc masonry in the front of the building and so because of that,
we're not going to be ripping frost now until Febnmry because the best insulation on the
ground is the existing din and where this building is going to go, there's 12 to 22 feet
covered.
Mason: Pretty well in.~llated.
Charlie James: So that's the worst condifion...so we're looidng at February then. And then
all of a sudden, when it comes to the walls, they come at once because they'll be all this pre-
fabrication that's going on in the background.
Bohn: When do you expect to have it complete?
Charlie James: We have to have it completed by October 15th under the lease agreement that
I have with Byerly's. Typically retailers, if they can't be open for November or
Thanksgiving I should say and ~, then they don't want to be open until spring
because they don't want to carry all that special merc~ and not be able to sell it and
then have to mark it down and move it out. They don't want to be can3,ing Thanksgiving
decorations and not open until Chrismias and so forth so we're under a real time crunch.
There will be a lot of activity out there.
Bohn: Any questions? Thank you very much.
Mason: Are you looking for a motion here Mr. Chairman?
Gerhardt: If you guys feel comfomble with both the architectural style based on...and would
like to see something more. I don't know what Charlie could come up with'but if you Want
to go with staff reco~fion, it'd be my suggestion that you change the $925,425.00 in
special assessments and land write down assistance to $1,111,'/25.00. That will give us
enough leeway there if taxes did go up from what my estimate on it is.
Robbins: I would move that we accept staff's reco~tion with the modifications that
we've talked about regarding the dollars.
Mason: Second.
Housing and Redevelopment Authority - January 13, 1994
Bohn: Discussion.
Boyle: Refresh my, on the modifications.
Robbins: Meaning we changed the dollars upward to reflect the increase of the tax dollars.
Bohn: Any discussion7
Robbins: Discussion. Just a matter of a little more technical. With the change or with the
approval of the style of architecture, if anything technically changes, does that mean it has to
come back to us again to approve it7
Gerhardt: There should not be any technical changes based on these drawings as they've
been presented. If they are, I believe he would have to go back through the Planning
Commission and the City Council and I would keep you updated on that also. So I don't
know what the recommendation was for the out building. Is that a standard design?
Charlie James: Yeah, and Tim isn't up to speed on that but we do have a party that we're
designing for there fight now on that. Or I mean we do have a party identified and he was
just given the packet this week on that and so...I talked to Bob Generous about that and we
have to come back and let the Planning Commission revisit that
Bohn: Will we be seeing that then?
Gerhardt: I'm usually included. The process we've been going through for the last 2 years is
that it goes to Planning Commission, City Council and then I bring it to the liRA. I think
Charlie would be more than happy to come back and visit with us at that time.
Boyle: Is the intent to build that building this year?
Charlie James: Everything's got to be done by December 31.
Bohn: The building's then to the west aren't included?
Gerhardt: The one building down from you Jim, the professional off'we building, is the one
I'm talking about
Charlie James: Everything that you see here will be built at once and completed this year.
Everything on this area fight here.
24
Housing and Redevelopnm~t Authority - Sanuary 13, 1994
Gerhardt: What Nancy's tellhig me is you have to come back to the Planning Commission
on some site plans with the office building?
Nancy Mancino: Yes, that's one of the conditionr~
Charli¢ James: Right I mcan I talked to Bob Generous about that today and he said that we
don't have to have like a month's delay or whatever. I can just hop back on and say ....
accommodate me but they're just waiting for us. We have preliminary de~gn for this
building. 'I'nere were some suggestions from the Planning Commission and the Council I
believe but in any event we're addressing those issues. We're waiting to kind of firm up and
we have three different competing uses here, all which were mutually exclusive in terms of
design and we finally have had a meeting of the minds with which party we're going with
and our. Yeah, this was the design of the building as it was initially proposed and there was
some talk about, down in this project here for instance the building is kind of over here. It's
stepping out.and this element stands up and then the back end stepping out and stepping out
here again and then...and then this is in a different plane than this element here so there, we
had this as a pre~ design for that building arid there was some talk about varying the
roof line a little bit more and I think that was a major concern was the roof line and trying to
do a little bit more in terms of the volumes on the front of the building here than what we
had here so that's what we're working on.
Gerhardt: You don't have any problem coming back here when you finalize those with the
Planning Commission and City Council and the I-IRA? I mean they just to be updated on
how it's going to look and what imp~..
Bohn: Any other questions?
Robbins moved, Mason seconded that the Housing and Redevdopment Authority
approve the architectural style and the Private .Redevelopment Agreement with the
James Company and their request for $1,111,725.00 in special assessment and land
write-down assistance. All voted in favor and the motion cra'tied.
HANUS FACILITY ROOF I/I~PAII/~ I~DATE.
Gerhardt: ...about a month ago I guess. Fred and Don handled that and at that meeting there
were some discussion on some I-Ianus facility development and with that the HRA directed
staff...in making thc necessary roof repairs to the Hanus facility. And I believe staff was to
go back and meet with Mr. Kin and see ff he was inmested in maidng those roof repairs
because it...what I'll call is the stand up roof section on the roof until the roof was in repair.
Staff met with Mr. Kin here approximately 2 weeks a8o and from that mee~g staff was to
Housing and Redevelopment Authority - Sanuary 13, 1994
look at the option of maybe placing that roof into a mansard roof. So using a mansard roof
design, would attach that parapet roof, mansard on the outside of the building. Included in
your packet is a memo from Fred Hoisington that expressed concern with that in the cost
area. That it would be substantially more than placing it on top of the roof. With that staff
felt the HRA would not go along with the additional costs in trying to fix the situation. Since
our meeting Mr. Kirt had thrown out one other idea that maybe we just re-use the interest
rate on the repurchase loan amount. In my mind I felt that it's just another way that the
HRA is going to pay for this. Fred has _talleed to Mr. Kirt this week and Fred, I'd feel more
comfortable if you expressed what your conversations were with Mr. Kirt and how we might
deal with this roof problem.
Fred Hoisington: It seems to me that the issue is pretty simple. That the roof is either
repaired now and paid for by Mr. Kin or repaired later and paid for by Mr. Kirt. If he pays
for it later, he doesn't have the benefit of the new structure. So we kind of explained that to
him over the telephone and he said, well. I'd still like the HRA to consider this reduction in
interest rate and I said, I don't think that there's any chance that will happen. He said, I
don't want this issue closed and one of the reasons we wanted you to act on it tonight
somehow or another is because when the parking lot gets started, and if it gets far enough
along before the roof is phced, there could be some additional costs associated with the roof
because of the potential damage to the parking lot during construction. Now it probably
wouldn't be big but you're running some risk ff that happened. But Gary says he needs more
time to decide what he's going to do. I guess what we'll recommend to you is maybe to take
another month and give him a chance to come up with a way to pay for this thing. But one
thing he did throw out. I guess I would just throw it out to you, is the possibility or the
proposal perhaps the BRA could finance that to repair the existing roof...at a lower interest
rate for just that element rather than having to write the whole thing down for that purpose.
If the answer is no to that, I think probably we simply won't do anything as far as that is
concerned, ff the answer is yes, at least we can keep negotiafions...and come back to you
next month with something in the way of an answer.
Chmiel: What's the difference between our, what's our interest rate on this now?
Gerhardt: It's 10% on $700,000.00.
Chmiel: 10% of how much?
Gerhardt: I think it's $700,000.00.
Chmiel: Okay.
26
Housing and Redevelopment Authority - January 13, 1994
Bohn: We're not going to put a mansard roof on it, correct?
Geflucrdt: The mansard roof was substantially more than the roof dedgn that you approved.
Fred Hoisington: And what Gary is concerned about, one of the reazons to consider the
mansard to be~n with was, this roof does have a number of...but at least the suucv, zre's there
to do that. There isl..outside of that suuctm-e so that's much more expens/ve. This is really
the cheapest alternative.
Bohn: And we don't want to put a mansard roof on if the roof...
Fred Hoisington: Well you could put the mansard on if the building was...you can't do that.
The least expensive roof...
Gerhardt: And if you go along and make the proposed, put on the roof that you're proposhg,
and Gary decides to fix the roof 5 years from now, he has to rip that tar roof off. And would
it go back up or things like that. You know we don't have anything in' agreements to make
sure that that stays up. Because theo he will incur the additional costs of.putting that back up
again and he was also concerned about the number of penetrations~..I'm not concerned about
the peaetrafions...I think that that is more than suffice to handle that.
Bohn: Staff's recommendation is?
Gerhardt: Right now I guess I'd like to open up the discussion regarding this potential loan
situation. I haven't discussed that with Don yet and I guess I wouldn't even want to have
you discuss that and I'd guess I'd like to take it to legal counsel and see if we can even do
something like that or how we could go about slru~g something.
Bohn: If we would want to.
Gerhardt: Yeah, and what inmezt rate it is.
Mason: Maybe that's the first thing we should quickly talk about is whether we even want to
consider that or not.
Chmiel: I agree.
Mason: I'm not convinced we do.
Housing and Redevelopment Authority - January 13, 1994
Bohn: I'm not convinced we do either.
Mason: I'm seeing five heads shaking their heads no on that so.
Gerhardt: Well I guess I got my direction.
Mason: Fisher cut bait I guess huh7 I mean is that being unreasonable to not even consider
that?
Chmiel: Well, I think I've got the same position as you are but the thing is, I don't know if
we want to put ourself in that position. If we establish a precedent as well by doing this.
Have we done it before?
Gerhardt: I guess the only other example of something like this would be Colonial Center
where we physically went in and made the facade improvements and basically assessed those
costs back against. But this is a little different We own the building and it's substantially
more and I don't know. We've done it to Colonial Center and...I don't know if we should
get in the banking business.
Bohn: You hit the nail right on the head.
Chmiel: Government gets involved in too many things.
Belin: Do we need a motion for this? Your recommendation?
Gerhardt: No. Fred, are you looking for any?
Fred Hoisington: No, I think you could make it very clear to Gary by just simply saying,
Gary. You need to replace the roof. The existing roof won't hold...
Mason: That's real cut and dry. I like that.
Gerhardt: I'll leave it open to, I tried calling him today. He's out of town until Monday but
I will express that to him and ff he wishes to come back and make arguments.
1994 MEETING TIMES.,
Bohn: 1994 meeting times. Does anybody got any problems with it?
Mason: I have a conflict. I'm pretty sure I have a conflict on October 20th but that's not
28
Housing and Redevelopment Authority - January 13, 1994
worth. I'm pretty sure I'm out of town that night. But that's a long ways down the road too
so I wouldn't anticipate.
Bohn: We could always change it.
Mason: That's fine. Yeah.
Bolm: How about Gary for July...
Boyle: There could potentially be a conflict but it's a long way down the road. The 24th of
February right now is a conflict I believe. I might be back in time but I don't know. You
could probably find any month where some person is going to have a problem.
Gerhardt: We try to schedule these on off Council meeting work days.
Mason: Which has been nice.
Gerhardt: I don't know why we do that. The Council's meeting every Monday anyway. But
it's understandable that you're not going to make every meeting. If we can play around with
other things so you can make it, whatever we can do.
Bohn: We try to make it even.
Boyle: Thursdays seem to be the best night.
Mason: Yeah, I agree.
Bohn: And it's always been usually the third Thursday of the month and everybody knows
that months and years ahead.
Robbins: I would motion to accept the approval of meeting dates as indicamt on the '94
meeting schedule.
Mason: Second.
Robbins moved, Mason seconded to approve the Housing and Redevdopment .Authority
meeting schedule for 1994 as presented. All voted in hvor and the motion carried.
APPROVAL OF BILLS:
29
Housing and Redevelopment Authority - January 13, 1994
Robbins: Question on the bills. I mean I asked this before and it was shown last week on,
or last month on the statement regarding Holmes and Graven. I understand we weren't using
them for counsel anymore.
Gerhardt: You're correct. We've tried to...away from Holmes and try to give them all over
to Knutson but Holmes is, it's attachment number 6. An outline of some of the fees...Target
we brought Holmes back in to bring those people back in line. It just got to be too much so
Holmes is so heavily involved with the State and tax increment. I know we made that
comment to you that we tried to use them less and we just can't. We're dependent on them
for their knowledge in the tax increment laws and the changes that occur there. And they're
the front runners. I mean Roger's excellent in getting things out tirnely and that and from the
planning aspe.~ but when it comes to redevelopment...redevelopment contracts and working
with Ryan's and the Target's and Byerly's people, Holmes and Graven have done it 3 or 4
times and they know how to deal with those. So we tried in the past Charlie and we just
can't. I mean they're just so helpful and it's money well spent by the HRA.
Robbins: Well we're not doubling up on any fees by paying, by having our counsel review
their findings or any of that?
Gerhardt: No. No. We just, with their expertise we just need them on our staff...
Bohn: Okay. Can I have a motion?
Robbins: So moved.
Mason: Second.
Robbins moved, Mason seconded to approve the Housing and Redevelopment Authority
bills as presented. All voted in favor and the motion carried.
Gerhardt: Did that include the pre-existing HR bills? My whole purpose there to explain
some of those?
Robbins: My motion included them, yes.
Gerhardt: And Tom...he owns the Mail Source building. I think we used Mail Source...
HRA PRESENTATIONS:
Gerhardt: One other item I handed out to you tonight that needs action tonight is we need
3O
Housing and Redevelopment Authority - Sanuary 13, 1994
your authorization to acquire pan of the Morteuson property off of Lake Drive East for the
pedestrian bridge. With that there's a resolution and if I could get a motion that would give
the City Atwmey authorization to start that co~d_enma6on for the taking of that property.
Here's a map that shows the area of question. We do not own...south side of Highway 5
where they touch down with the pedestrian bridge and that's owned by the Mortenson
Company and we've already rece/ved an appraisal and completed for that taking over there
but we need to pass this resolution tonight authorizing the City Attorney to start negotiations
and use condemnation if necessary...I do not know. I haven't seen the appraisal. I don't
want to see the appraisal. We leave that up to the City Attorney. That's for condemnation
purposes so basically we would bring that back for you to approve that acquisition...
Robbins: So all you're asking us is for the direction to start.
Gerhardt: Authorization.
Robbins: I would motion to start per the letter from Campbell-Knutson.
Bohn: It's been moved by Charlie and seconded by Gary.
Robbins moved, Boyle seconded that the Housing and Redevelopment Authority approve
a resolution authorizing the City Attorney to begin negotiations to acquire the property
owned by Mortenson Company on Lake Drive East for the pedestrian bridge, and
authorization to start condemnation proceedings if neceamry. All voted in favor and the
motion carried.
Boyle moved, Mason seconded to adjourn the meeting, Ail voted in favor and the
motion carried. The meeting was adjourned.
Submitted by Todd Gerhardt
Asst. Executive Director
Prepared by Nann Opheim
31
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
DATE:
SUBJ:
Housing and Redevelopment Authority
Don Ashworth, Executive Director
February 18, 1994
Consider Acqui~tion of Land Next to the Chanhassen Inn from Don McCarville
Mr. McCarville purchased the lot just to the west of the Chanhassen Inn (see attached map) in
the early 1980s. As you may recall, it was during this time frame that the city/liRA had
anticipated that the downtown would be redeveloped using thc '¥ing road" concept with Kraus-
Anderson developing a major cornn~~ entity inside of that ring mad. After two years of
continuous weakening commercial constructionfmcre~sed interest rates, IG-auss-Anderson finally
walked away from the project. The new redevelopment plan no longer included the acquisition
of Mr. McCarville's existing dry cleaning business at Great Plains Boulevard and Chart View.
Over the past 10-15 years, Mr. Mc~e has continued'to try to sell the ~. Potential
users have included a gas station, convenience center, car '.wash, etc. Although Mr. McCarville
sees this property as a pivotal entry point into the community;, and theref~ having a value
similar to Target, Charlie James, crc; the fact is that the parcel is partially encumbered by an
existing wetland and does not have a similar value to those identified by Mr. McCarville.
-...
If we were to consider co~lem~fion of flxis pm'c~ I would an .ticipa~ a rather .10rig and drawn
out court battle wherein Mr. McCarville wonla continue to maintain the higher ~idue associated
with other commercial properties whereas the city would contend that its-Value is diminished
because of the wetland. The second issue that I see as key in regards to this parcel is the fact
that I am anticipating that the Planning Commission, HRA, and City Council would all be
strongly against the use of the property for a ~ wash, gas station, or convenience center. The
total dollars that we have put into ensuring the Market SquareJHighway 5 enuy point is an
attractive entrance into our community cries to assure that the comer is not further encumbered
by one of the uses outlined above.
The parcel is not overly large, i.e. approximately 40,000 sq. ft. ~gly, the cost of
acquiring this piece would probably not be si~ifieant in comparison to the potential detriment
Housing and Redevelopment Authority
February 18, 1994
Page 2
that might be created on the site by the infusion of a car wash. As mentioned earlier, I believe
that the value that an appraiser may establish for the property would be significantly below what
the owner believes the property is worth. On the other side of the coin is the fact that Mr.
McCarville has not been able to sell the property and is now approaching the city to see whether
or not we would make an offer. I think that it is worth pursuing, but I would like to hear the
I-IRA's thoughts before talking further with Mr. McCarville.
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FEBRUARY 1987