EDA 1994 03 31 AGENDA
HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, MARCH 31, 1994, 7:30 P.M.
CHANHASSEN CITY HALL, 690 COULTER DRIVE
CALL TO ORDER
APPROVAL OF MINUTES
1. Approval of February 24, 1994 Minutes.
VISITOR PRF_~ENTATIONS
Anyone wishing to address the HRA may do so at this time.
OLD BUSINESS
3,
Consider Approval of Russ Pauly's Lease.
Consider Lease Extension for Don Kallestad for the Pony Express Bar Site.
4. Update on Vision 2002.
Update on Market Square.
Update on the Hanus Facility Roof.
sUSI ' SS
7. Consider Giving the Tenants of the Pryzmus Building Notice to Vacate the Building and
Assist with Relocation.
8. Approval of Bill.~.
HRA PRESE~A~ONS
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REMINDER
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THE NEXT HRA MEETING WILL BE ON
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THURSDAY, APRIL 21 AT 5:30 P.M. THIS
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WILL BE A JOINT MEETING WITH THE
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CITY COUNCIL
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CHANHASSEN HOUSING AND
REDEVELOPMENT AUTHORITY
REGULAR MEETING
FEBRUARY 24, 1994
Chairman Bohn called the meeting to order at 7:30 p.m.
MEMBERS PRE~ENTi Charlie Robbins, Oary Boyle, and Jim Bohn
MEMBERS ABSENT: Don Chmiel and Miice Mason
~TAFF PRESENT; Todd ~t, Asst. Executive Director;, and Dave HempeL Asst. City
Engineer
APPROVAL OF MINUTES: Robbins moved, Boyle seconded to approve the Minutes of
the Housing and Redevelopment Authority meeting dated January 13, 1994 as presented. All
voted in favor and the motion carried.
VISITOR PRESENTATIONS;
Don Kallestad: I'm Don Kallestad and we live above the Pony Express Bar and I und~ntand
this meeting has something to do with the t/me table of our having to vacant that premises.
Is that right7 Am I at the right meeting7
Bohn: Well we can't do anything because you weren't on the schedule so we can't make a
motion or an~g if you aren't on the schedule but you can say what you want to say.
Boyle: h will be pan of the discussion tonight.
Don Kallestad: Okay. Well we've had about 10 years worth of living there and we have had
a lot of complexities in our life dealing with making a move as early as this smmner really
difficult, to say the least and we would sure npprecia~ being able to stay in our place for
some period longer thau what I understand is under discussion, and I haven't really been
priviledged to any information as about to the extent of a time table that's been developed or
anything. It's my understanding that there's some oonfide~atio~ going on for a possible... I'd
just like to ask that we be allowed to stay there for as long as possible and to make our plans
to move into another facility with, and be able to move all of our worldly goods...my wife's
and my possessions and everything and living there 10 years, we've got plenty of
accumulation so it's going to be a very difficult task And we don't know where we're going
to go or anything and I've been looking for employment and have 20 resmne~ a week going
out so it would really help if we could delay it for my family can be able to stay there.
We've taken good care of the place and we'd appreciate anything that could be done to
extend our stay there.
Housing and Redevelopment Authority - February 24, 1994
Boyle: Thank you. We'll take that into consideration. Thank you Don.
Don Kallestad: Appreciate your time.
Bolm: Is there anyone else? Richard.
Richard Wing: Richard Wing, Chanhassen City Council. At the last Council rnee~g we
were quoted in the paper as having some.
Robbins: Speak up a little more Dick. It isn't on I don't think.
Richard Wing: At the last Council rnee~g, towards the end of the meeting the paper quoted
us on issues having to do with HRA and concerns with communication and some
disagreement and who should be talking to who and how we should be doing what and who's
driving and who's in the, I'm concerned about the mix that we've had. I think you hear a lot
of comments about HRA looking at designs. Approving designs and we don't know a thing
about it and then it comes to us and they don't meet our standards so I'm concerned about
having common goals and common directions. I think that contract developments and TIF
money and whatever, all the things you're responsible for, you certainly have our support but
I want to try and create more of a...this year so we're communicating and everybody knows
what's going on. I think the HRA's an appointed board with the Council being the elected
board. One's sort of creating the driving if you will and I think we might be going down the
same road and I'm a little bit concerned how we handle that. So we talked to Mike and some
of that, and some of that is coming through to how we might be in better communications
with HRA and see that are in fact common. Under this discussion the property that I-IRA
currently owns on West 78th Street and Market Boulevard came up and we had heard that
there's a proposal for a Wendy's and an office building. I don't propose restaurants, off.ace
buildings. I don't propose retail development. This is all fine but I think we want to make
sure we do it right and what we really got into that night is land use and what are we going
to do with that land. And what is the appropriate use of that land and who should be
developing that land and what should go on that land. And I think it was the Council's
position and subsequently without any doubt it was certainly the Planning Commission's
position at their last meeting that that land is premiere. It's the focal point of our community.
It's a pivotal point in our community. And after the Planning Commission meeting of
February 16th, I guess I left there a little bit stunned because I thought the proposal that was
brought forward by, and I don't want to use the wrong words but I think Bloomberg.
Audience: Lotus.
Housing and Redevelopment Authority - February 24, 1994
Richard Wing: Lotus? Was, for n~ personally almost an insulL I thought it was very
substandard. Very inappropriate architecturally. Materials. I thought the whole proposal was
really disappointing. And I think ~eff Fannaims in his message, and I'm not going to tak~ thc
time to quot~ Jeff but he really said what...all my years on Council I think the city deserves
a lot more than we were offered. And I think we have a right to expe~ more and I think we
have a right for better quality. I think we're trying to...and that really isn't suppot~ that.
So other that that I went back and at the City Council meeting, and again promp~ by the
Planning Commission, wanted to know some questions on who owns what. It really
astonished me. Do we own the ~ or don't we? What is our responsibility to the
Bloomber§s...? Can we buy it? Do they own it? Will they sell it? So thc Fin,tlngs of Facts
were worked out and at 4:00 this afternoon I got this statement from the City Manager, Don
Ashwonh and the Attorney and basically, as I understand to the best of my ability. By the
way this is one of the Council, this specific parcel of land and what we'd ~ to see done
with it and some direction when we go to the Council and these Fin_aings of Fact and
determine exactly who owns it. To the best of my abih'~, based on this document today, the
HRA owns it. And there's several things that can happen. One thing that son of startled me
a little bit here, on number 5. h says that if any proposed development of the subject
property by buyer shall be subject, any proposed development of the subject property by
buyer shall be subject to the approval of the seller. You're the owner. You're the seller. So
in determining the appropriateness of any such development the seller shall tak~ into account
the proposed use of the subject property. We have the right as the seller to deal with that.
The seller shall take into account the design of the proposed development. The seller can
take into account the architecture. Thc seller can take into account the co~on of any
proposed stmctures...so on and so forth so you have a fight to say no to this, as I understand
this. And it's my personal opinion that the majori~ of the Planning Commission, and I think
I can speak for the majority of the Council, although I'm going to speak only for myself on
this at this point, are not going to support what we've seen. I think anything that goes in on
that comer is going to be top of the line, top quality and if this proposal before us continues,
it really forces the city to take action to block it. Whether we buy it, condemn iL If you
look at the options here, owning it. In lieu of us having to do n~ 5 where we could
come to agreement with the developer, which certainly is a potc-ntial for the liRA, with
Council's support, could come to an agreement with the buyer, Bloomberg for a proper
proposal that we could handle. If that wasn't the case, it would be my intention, from the
City Council's standpoint, to find an offer from a third party and that could well be the City
of Chanhassen. As a City Council member, I would make a proposal for Council to buy it as
a third party. And the other thing to do is sir?ly condenm it and I Would not hesitate to do
that with what I've seen to date. So on the 28th it will be going to the City Council and this
issue will be dealt with specifics~ly. The use of that land. Hopefully at that time a
recommendation, a resolution to the liRA undersmn~ you own it. We don't. You own it.
You'll be selling it and dealing with it. Not necexsarfly the Co~ I think it will be going
Housing and Redevelopment Authority - February 24, 1994
back to the Planning Commission. I would urge you to read their Minutes. It's the first time
in history that I've ever seen them be truly decisive on an issue I felt. They were not in
favor of this. When you cai1 a proposal of this magnitude an army barracks, that's not a
compliment. And that came across loud and clear. And then of course it will be coming
back to you so I think there's a lot more to be said about this land and that comer. I would
urge you to move very slowly. I think once again anybody that asks for HRA support, TIF
money, should be very cautious with it, very patient and very respectful. And I' would also
urge that you attend the Council meeting coming up on the 28th because it's clear, it will be
later on in the agenda and it's clear it will involve some ~ issues that I think you want to
be informed of and knowledgable of. So I was very disappointed in this proposal. I could
see, as Jeff Farmakcs, could see nothing good in it. I'm not opposed to Wendy's being there
but I guess right now I think it ought to be part of an existing building, as they've done in
Edina or the Subway as part of the shopping center. Another issue we have is that there was
a desire to maintain some of the shopping center elements and carry them forth and I think
we hit that head on. I think the Planning Commission a/reed with me that that isn't what we
want to continue. That that shopping center was not popular and Sim you remember the
hassles back right to last minute about what are we doing and why does it look this way and
put on some crazy roofs at the last minute. We don't want it related to or connected that
shopping center. This is going to be a free standing development and it's again, our focal
point. The premiere corner and I have very, very high expectations for it and will do
everything in my power to see that the city gets what I think it ri/htly deserves but it's going
to be in your power to do so and you're certainly in the driver's seat on this one. I'd ask for
a lot of caution and a lot of communication between yourselves and the Council. Thank you.
Bohn: Thank you. Anybody else wish to address the HRA. Nancy?
Nancy Mancino: Hi, I'm Nancy Mancino from the Planning Commission. I would just like
to add to what Dick said and that is that the Planning Commission, not only the archi~ai
standards, we were very displeased also with the traffic circulation and that is with the
Wendy's and the drive up. We just didn't feel that that was adequate for the pedestrian
friendliness of the development. That we felt that one of the things that the Vision 2002
wanted to keep...most of the members that attended those meetings wanted the downtown to
be pedestrian friendly and we didn't feel that this development has...pedestdan friendliness of
it. Other than that I guess it's tied to those three things. We have not voted on...and I'm
sure we will be hearing from the...thank you.
Bohn: Thank you Nancy. Anyone else wish to address the liRA? Vernelle.
Vcrnelle CJayton: There are a lot of folks here that will say something other than what I
Housing and Redevelopment Authority - February 24, 1994
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have to say to you. I'll limit mine to response to the convnents, some of the comments that
were made as to reflecting what the Planning Commission as a whole thought because I don't
think they represented to you properly. I guess bottom line is, I hope you will read the
Minutes because I didn't get the same ~sion as Dick did, but then he wam't in the room
all the time as the discussions were going on. For example, Jeff was very critical of the
office building but said in fact he really kind of thought Wendy's had done a good job. But
rea~ the Minutes. That's how I remember it. None of us have seen the lVlinut~. Dick also
said that the shopping center architecun'e was very unpopular and that roofs had been added
at the last minute. I wish, he said that at the, he criticized the architecture at the Planning
Conm~ssion meeting. Even at thc end. And I wish that i had pulled out the rendering that
wc had because wc have a large rendering that looks just like thc center with one exception.
On thc rcndcrin§ it says Super Valu and that wc all know was a store that wc planned to
have there a couple years before it was actually built so it was not, as he sugg~ at the
other meeting, ...it was planned all along. And for your information, as I've mentioned to
OtherS, if you're opposed to sorl~ing, you hear f:rom all the negative people that think like
you. If you're for something, you hear from all the people that...and everyone notes that we
kind of tike thc Market Square shopping center. The whole community likes the Market
Square shopping center. Wc have lots of compliments on how nice it looks~ For your
information, so you don't...Also thc community has an ownership of thc shopping center.
Everyone feels cornmitted to shop there. Several of us, not just me but some people that
work in thc city. People thaL..go out of their way to shop there when they could go
somewhere else because they like it and they're proud of it and I think it wonld serve us all
well ff the leaders in thc community would stop bad mouthing it.
Bohn: Thank you Vernelle. Thank you. Clayton.
Clayton Johnson: Clayton Johnson representing thc Bloomberg Companies and I probably
need to wear a couple of hats here for a few minutes ff I can. One is I, Dick referred to a
letter that Roger Knutson wrote and it is tree. In that letter, it is very clear the HRA
~tly does own the property that we're talking about. However we, Bloomberg
Companies do have an option to purchase that property and an option runs until March 31 of
1995 and I'm here tonight to tell you that we will exercise our option, whether or not this
development goes forward or not. The other thing, the thing that concerns me I guess is that
you know as a group we came to this group and we came to the staff about a year ago and
said guyS, we're §oing to start through a process in which we're going to spend a lot of
money trying to develop this site. We have hem'd all the conversation about libraries going on
that site and other public uses and we said hey. If in fact the intent is to have a public use
here, please save us the time and the trouble and the cost and let's discuss that at this point in
time. We had every assurance that that was not the case. That this was a private
development site and I guess for a minute ff I could take off, ff Bloomberg hadn't, and talked
Housing and Redevelopment Authority - February 24, 1994
as one of the shopping center, I have to tell you that it was always the intention when we
platted that site, when we developed that site, that there would be retail on that comer. It is
very important to the long term success of the shopping center that retail be on that comer.
And the proposed uses that we're proposing are all legitimate uses in a business district. We
don't have a problem discussing the architecture of Wendy's. We don't have a problem
discussing the architecture of the office building. All those are very legitimate concerns that
normally would would start at the Planning Commission and move on and would all be
discussed. I guess Councilman Wing, if there's anything that would concern me, after
reading the newspaper article, and you'll have to correct this if I'm wrong, and this is, after
reading the newspaper article, I've got the feeling that somebody was trying to change the use
of this parcel. That in other words they're saying, hey we don't want this to be a commercial
site. It's across from City Hall. It's across from a public park and so we want it to be a
public facility. There again, that's an issue that can be addressed but that issue isn't
addressed through the I-IRA and through an agreement that you have with us. That issue
should be addressed through a rezoning of the property. In other words, if you want, Dick if
you want something other than a commercial development over there, I don't have a problem
with that. But then the issue there is that should be addressed through a rezoning of the
property. Not through an agreement that we may or may not have with you. So we're
plowing ahead. We came, we got that direction that we were interested in a private use.
We've invested a tremendous amount of time and effort and money. We're proceeding
through the Planning Commission with our plans. Obviously, just like every other project
we've built, we know there's some give and t__,_ice in regard to the architecture and what's
going to be accomplished, but that's still the route that we're headed. And if there's some
other direction, we're anxious to hear that from the Council. If the Council has decided that
it's not a piece of commercial real estate and it's not something that they'd like to see
happen. But then I believe that there's another process that's going to have to be used to
determine what happens to the property. Any other questions that you would have that I
could answer?
Bohn: Not at this time. Anybody else?
Tim Manning: My name is Tim Manning. I represent Market Square. I'm going to repeat a
little bit of what Clayton said and that's simply that that properW was envisioned by us from
day one to be a retail type of traffic generating use. Uses that are permitted there, this
restaurant is permitted there. The office retail building combination is permi~ there. If Mr.
Wing has some objection to that particular restaurant or style of restaurant or if it's fast food
or so forth, I think he's still got to recognize it's a permi~ use. I'm also taken aback a
little bit by his objection to the designs. All of that property, the existing Market Square I
and these various lots are all under PUD which normally carries with it standards that are
very uniformed or somewhat uniform anyway. What I heard him say is that he wants
Housing and Redevelopment Authority - Felmu~ 24, 1994
something entirely different. If so, that should be addressed agsin through planning and staff
and we have not gotten that direction at all as far as we have traveled it with planning to
date. Thank you.
Bohn: Thank you. Is there anybody else? Brad.
Brad Johnson: Brad Johnson, 7425 Frontier Trail. I want to show you guys a picture. I
don't know, you probably don't remember it but this is what C~du~sea used to look like
before the liRA took over and I can remember when I first came here because Todd had just
come here. It didn't look much different than that and over the last oh ? or 8 years, through
thick and thin, ~un and Charlie at least and son~ of the other members of the HRA have
plodded along and we have successfully over quite a bit of time amacted some atlention to
the downtown commercia~ area. I can tememb~ at one time, Todd and I had this discussion
once when we were thi~idug about that all community taxes will be based upon the
percentage of sales tax and we quickly calc~]s__u~J that Chanhas~ has the lowest sales tax of
all the major communities in the area but we didn't knOW, there was no commercial in the
whole town. We've worked pretty hard over the last few years. I think we've woe, ed pretty
cooperatively with the process of developing the downtown and I think it's to include T~rget
as part of our program because we're the one that packaged the deal and got it down there
instead of over by the Legion. You've probably put in about $25 willlnn in development. It
probably pays, if you can quickly figure that. It pays, how much does that pay? Real estate
taxes for $25 million.
Gerhardt~ About 5% of that.
Brad Johnson: About a million 250. I don't know what the total tax base commercially is
downtown but, so I thinir basically I think, what I hear a lot of is that the liRA hasn't done a
good job and they're not paying attention to something and I think that, I know...that we
haven't done a good job but I think the bask thing is that we've all done a job and any time
you do anything, you get criticized and hind sight's better than fore sight. And much of the
business that we're involved in in development is looking forward as to what we can do. It
took us 3 or 4 years to do Market Square. It took us 3 years to do the apartment building. It
took us a year and a half or 2 to do the first development over here in Town Square. I don't
know how long it .took us to do the hoteL Herb started thinking about a hotel 25 years ago.
So none of this gets done very quickly. We are concerned that it took 20 days to get
Byerly's through. That always has concerned us and we're wondering what that really
Bohn: They had money.
Housing and Redevelopment Authority - February 24, 1994
Brad Johnson: Yeah, I don't know what it is. But it's just kind of interesting. So when we
started on this project we knew that we had a tough comer to deal with. We have been
attempting to bring in different tenants into that comer for the last 5 years. You know since
we knew we were going to have a comer...Although many people think Chanhassen is just a
wonderful place to live. Not a lot of merchants or people are really anxious to build, and not
only in Chanhassen but any big building so it's always hard to find a tenant The two
primary tenants that we have today there, in the case of Edina Realty, I've been working on
for 5 years. And in the case of Wendy's, we've had oh at least 6 restaurants be proposed
there. A couple we've turned down because they competed with tenants that we had, such as
Frankies and such as the taco store. We had a Taco Bell that wanted to come here and we've
had other people like that and we felt that something like a Dairy Queen or Wendy's or
Burger King or something like that would be nice. I live in town. There is not really what
you'd call "fast food" on this side of Highway 5 for the kids to go to and stuff like that so we
always felt that was, I think in all of our plans we presented it that way. So we started the
process and if you recall about a year ago we came before you and said, well we know that
you guys can turn this down. What do you think of i~ and of course Jim said, well we need a
peak roof and we're not sure of this and somebody said I don't like Wendy's hamburgers but
we made it through that meeting and somebody said well, if you just make some changes to
it and make it look okay, we may go along with it. Recognizing also that over the last 5 or 6
years the I-IRA has been criticized for not, for doing, for pre-empting a lot of the other
processes. I think in all our projects, other than just to let you know what we're doing, we
normally try to go through the process. So last summer we started the process and we mn
into some delays that have to do with other things that are going on in the city. But we have
come up with a plan that seems to work. I think there was a tree ordinance that was being
worked on and a new parking lot ordinance that was being worked on and we spent the
money to make sure that this particular thing matched that so it wouldn't be turned down by
that. And then we got involved with the Highway 5 process which said you can't do any
development because we're trying to figure out what we're supposed to be doing with
Highway 5. And that's been the process. We finally made it to the Planning Commission
only to find out that they hadn't sent out notice that there was supposed to be a public
hearing that evening so technically we haven't been to anyplace yet with that particular
program. I don't know, was anybody from the public there complaining other than Mr.
Wing?
Vemelle Clayton: No.
Brad Johnson: Okay so, my kids are kind of looking forward to the Wendy's pan of it and I
know the Edina Realty people are anxious to get on with their lives. So we have not even
had a public hearing at the Planning Commission and I believe the process is to go through
staff. If you re~ the staff report on this particular building, based on their input, there are no
Housing and Redevelopment Authority - Febnm~ 24, 1994
variances requested. We have a number of agreements that go with this. There is a PUD
agreement that the city signed with us along with a redevelopment agreement that the HRA
signed saying that we had to conform in archi~ to what we did in ~ Square. So it
was part of the package. We've already had three buildings approv~ over there. A dry
cleaners, a veu'inafian and a bank. All of which had very ~ architecture. Some had
brick, some had stucco but the architectm~ would basically be the gabled roofs and stuff ~
that so we didn't think that we had a major problem...what I wanted to point out is that the
project itself had staff approval and I believe it's the staff that's supposed to be the experts as
far as traffic plans and things like that. Although there was a minor change that made us
change everything about 3 days in advance of the Planning Commission meeting. They
changed the whole direction and focus of the Wendy's store, which Vernelle wozk~ through
with the planning staff and we changed it and it seems to work. And as I said, we're still not
yet to the Planning Commission t~chnlcnlly. They had a discussion but couldn't vote because
it wasn't a public hearing. Following that I believe it goes to the City Council. And then it
comes back to you guys because then you say okay, we'H let it go or not and that's kind of,
so you...position to say we'll turn it all down aft~ you've done all this stuff. So it's sort of
difficult for us not to bring it to you first but as you heard the Planning C. ommission and City
Council doesn't want that to happen. They prefer to have it go through the process so we're
iclnd of juggling back and forth. The bottom line of it nil is that I think Mr. Wing is entirely
out of order in the process that he's taking here and I don't know how to correct it bec.nuse
this should not be on the agenda for the 28th. It's not the con'ect process Mr. Wing and...
lawyers have found that out. We're talking about a new zoning issue which is not, that's a
public hearing. These are all kinds of things that the correct process from our point of view
is that we I~o through the planning process. As I said in some cases it's tnk~ us, in the case
of Abra and Goodyear, it took us a good year to get through the Planning Commi~ion and
City Council. We don't like particularly, we'd prefer to be ~ Byerly's and be able to do it
in 20 days but the point being is that we still haven't made it through that and n~y as
Clayton said, we're used to give and takes. But the ~ being used on the building are
the materials that are in your ordinances. We don't require brick here in town. Never have.
As a matter of fact we just got away from metal not too long ago, if I recall correctly, and we
went to the certain kind of brick on the exlm'ior. A little of that has to do with the economy.
We are lucky here to get $10.00 and $12.00 rent for new buildings and ff you have an all
brick building, it requires rents in the $14.00 to $15.00 and nobody will pay that cun'~tly.
So it's more di~icult to do that type of thing without assistance. And secondly, this project is
not requesting any assistance. As part of our PUD agreemmt, we don't get any. We are
supposed to do this on a more public basis. It does pay for the assessments that went in and
currently the city is doing the assessments, you know ho_~dlng back the assessments and
they're not, hey. Nobody's paying them because there's no projects thus far. I would like
Mr. Wing to reconsider the process that he's going through because I think it's out of order
but that's up to Mr. Wing. We'd like to continue on our normal process where we'll go back
Housing and Redevelopment Authority - February 24, 1994
to the Planning Commission. We know we have a permi~ use. We know we have 3 or 4
other binding agreements that would have to be changed to change the use on that comer, and
these are agreements with both the HRA and the city. So that's kind of where we're at and I
don't think it's an action point of what you have to do. I just want to point out that
somehow through all of this that Lotus and Bloomberg and Amcon have been able to develop
a complete downtown, which looks a lot different than this. And we've done that with a lot
of give and take. And with a lot of changes and additions. I believe they took a vote at the
2002 whatever hearing that was and the two top developments that the city has so far were
the Target and the Market Square. And in fact, I can remember a lot of people that didn't
think we should have a Target in town. Yet if you read the paper you would find that one
neighborhood over in the east side of town had a party just because they now had a Target.
They didn't have to leave town to buy everything they wanted to do. And one of the reasons
we have a grocery store Charlie is because we didn't have a grocery store, right. We've
given and taken and I think we should keep that progress going. Mr. Wing is relatively new
to this process. Maybe he isn't aware that there is a process in the community to go through
this and it has worked okay. It's part of it and we'd like to continue that process. As I said,
it is difficult for us with the tenants. They do invest a lot of money and time and it's not
easy to at, act still people to Chanhassen, slthough everybody thinks it's that way. It isn't.
And that's our business so I want to thank you guys for helping us do what we did for the
community. I think the HRA should be proud of themselves because everybody that comes
to this community from outside this community at least _thinic~ it's just wonderful, so thank
you.
Bohn: Thank you. Anybody else wish to speak?
PUBLIC HEARING CONSIDERING LAND SALE FOR REDEVELOPMENT
PURPOSES~ LOT 4~ BLOCK 1~ WEST VILLAGE HEIGHTS SECOND ADDITION.
Gerhardt: This public hearing is in regards to the sale of Lot 4, Block 1 West Village
Heights Second Addition to T.F. ~'ames Company for the development of a 90,000 sq. ft.
retail facility. This sale is in accordance with the terms of the Private Redevelopment
Conu'act between the HRA and James Companies. At this time, staff would request the HRA
take citizen comments.
There no citizen comments were received.
Motion by Bohn, seconded by Robbins to dose the public hearing. All voted in favor
and the motion carried.
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Housing and Redevelopment Authority - Febnmry 24, 1994
P
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Motion by Robbins, seconded by Bolm to approve the land sale of Lot 4, Block 1, West
Village Heights Second Addition to T.F. James Companies in accordance with the
Private Redevelopment Contract. All voted in favor and the motion cnrried.
CONSmER ACOUISm0N OF LAND NEXT TO THE g~uNHA~/INN FROM
DON MCCARVILLE.
Gerhardt: Mr. Chairman, incl~ in your packet is consid_e~-ation on the acquldtion of land
next to the Chanhassen Inn from Don McCarville. Mr. Ashworth was approached by Mr.
McCarville in having the city consider acq~g some land. He feels fmsmtted through the
process that he's had several people approach him and try to pursue an acquisition to his
property but has never been able to complete the purchase agreemenl~...so he approached Don
here approximately 3-4 weeks ago and asked if the city was inme, sted in acq~ that
property. I think Don's memo kind of outlines some of those frugrations that Mr.
McCarville's had in the past year. Staff is not asking for direction to enter into a purcha~
agreement. We're looking for direction from the HRA if this is an acquisition that you want
to take on. Is it something that you'd like to have mff sit down and have further
conversations with Mr. McCarville and ~e truly how much he is willing to sell that ~
for.
Boyle: I have two questions Todd. First of all, is thc wetland issue a new issue?
Gerhardt: It was always a question I guess. It has characm'istics of a wetland. It was
missed on I guess the wetland maps. The official wetland map. But since hiring Diane
Desotelle, she has gone out and reviewed, who is our water resource coordinator, who has
gone out and reviewed this sim and she has deemed that it having charac~tics of a
wetland.
Boyle: Characteristics of a wetland.
Oa'bardt: Right
Boyle: Do you know the taxes that Don's cum~tly paying on that property?
Gexhardt: I do not. I could find that out.
Boyle: Well it's not pertinent right now I don't drink Todd. I would guess that if we
condemn the property, anything that we're going to offer Don at this pm~cular point, or that
we could, based upon the restrictions on the land, that being a wetland, would probably not
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Housing and Redevelopment Authority - February 24, 1994
be sufficient for what I'm sure he's looking for for the value of the property.
Gerhardt: Well I mean it is a lot of record. You could possibly see some of those uses
constructed on the site. Even though it is a wetland, State law says that what they would
have to do to mitigate that wetland is find another area to place that wetland in. Somewhere,
I don't know what the radius is. But somewhere within the community, replace that wetland
that would be altered. Or eliminated. So the site is not unbuildable. What he feels has a
value and wh~t we see the value is somewhat different and what we would like to do in the
next several months is sit down with him and try to come to terms with that...would come
about. I think from what Don updated me on is that he'd like to sit down with Mr.
McCarville and try to come to terms with a businessman in the community and discuss it
openly and honestly and try to come to a middle ground.
Boyle: I would agree with that. Then have staff come back with a recommendation.
Robbins: I guess just seeing the data, not from BRW that was drawn in 2 of '87. This is
now '94 so this has been around a while that Mr. McCarville would like to sell the land and
he's stated that he's tried to sell it before and had problems. By us owning it doesn't
accomplish a lot. Again we go back to that same question that I think a lot of us have raised.
Are we in the landlord business or what do we want to do here7 I'm not sure that's our goal
to own land for the sake of owning of land. So for us to buy it, or for the term you want to
use buying it or acquiring it, whatever, I'm not sure is in the best interest. I mean if it's a
wetland, whether we own it or he owns it, to mitigate it isn't going to change. I mean the
laws won't change because well that's a governmental body or a private person that owns it.
So I guess to pursue this I guess I would not see this to our best interest to aCclui~ the
property.
Gerhardt: The only, maybe some of the benefits of city ownership is that you do own the
land next to there. Where...and with that, it's easy to control over developments that would
occur on there. You also are preserving, ff that is truly a wetland, you are preserving that
wetland. You've done that in preserving other natural things within the community. The
trees over on the Target site and the whole Red-E-Mix/Taco site. You know you've owned
that area along there. Some of these areas, no question that the Taco Shop and Red-E-Mix
site should have been Highway 5 right-of-way when they rebuilt that road up there. There's
just not enough width, depth to the property to re, ally allow an adequate building to be
constructed there. I mean you're not going to fred a smaller user than that Taco Shop or
anything else and to try and get a parking lot and landscaping to meet the ordinances and any
on site ponding...I don't know if I can answer your question or if you have any more
questions. There are some public benefits of maybe owning that property and then
controlling it.
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Housing and Redevelopment Authority - February 24, 1994
Robbins: Well back to the original statement you know about selling it and buying it. I
mean if he's been trying for 6 years to sell it, and he hasn't sold it tells me that there's a
problem selling it. I ~ people sell things for a couple lV. Asons. You know they don't
want it so if they want to sell it, they want to, if you can't sell it, it tells me that it just is not
a buyable property. So for us to own it, whether it be for a convenience center or whether it
be for you know whatever the statements are in here, the uses. It says ~ would all be
against a lot of uses. Well, if we've got a piece of land that we can't use, then why own it?
True, the fact that we control it but if we control it for the sake of not owning it, or-not using
it, doesn't accomplish a lot here so I guess I would be, table this and have staff come back
and just talk to Mr. McCarville this summa, this fall and let's talk about it next year.
Gerhardt: You make an excellent point Charlie and that's where I think Don points out in his
memo that...negotiations with the guy. I rrzan we feel that it's worth 17 cents a square foot.
That's what typically wetlands and the low areas are going for and he feels it's upward of
$4.00 a square foot. We see this site as being di/C~.ult to develop...
Hempel: Maybe I can shed some light on this.
Gerhardt: There's no end to that. I mean you want it all the way down to China I flfink and
it's a difiqcult site to develop.
Robbins: I guess just in, if who's ever looking at that parcel wants to develop it, whatever
the case is, if Mr. McCarville can work out his own deal without involving the city at all, it
might save a lot of time all the way around.
Gerhardt: I think some of the frustrations that led up to it are some of our ordinances and
engineering of the site and things like that. It's a difficult site to develop. I think Ru_~ has
talked about a car lot and some of the concerns that go along with that. You know the
stacking back out onto the street and things like that...and the closeness to the highway. The
aesthetics and things like that that come along with it. There's a variety of things that you
could raise and I don't know. It's a frustrating piece I think for everybody to try and work
Boyle: And as a result I have ~y for Mr. McCarvil~ I think that's a tough situation
to be in fight now. But I think we need some options to review be/are we can go further
Todd.
Gmtmrdt: Ohyeah, Iagree. Andagain, Mr. M~ came to us in frustration lthinir and
you know if staff was looking back to the HRA. If you want ns to pursue other opfions...and
see what we can come up with.
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Housing and Redevelopment Authority - February 24, 1994
Boyle: I'm in concurrence with Charlie. I don't think it's in the best interest of the city to be
landowners. But if that property is not developable, not in such a manner, because of all the
restrictions put forth so we can develop it, then is it something the city could use for park or
entrance or whatever. That would have to be one of the options discussed I'm sure.
Gerhardt: Well I mean there's even limitations on the city. If it is designated a wetland, then
there are oniy certain things you can do to iL You can't go in here and manicure it into a
nice lawn so Charlie can go out and mow around the thing. And if it is truly a wetland, it
has to stay a wetland.
Boyle: That's the other thing we haven't really determined if it really is wetland.
Gerhardt: It has been classified as a wetland but not the entire site. Just a portion of it. I
can't tell you what the square footage of it would be a wetland and what wouldn't but I could
get you that.
Robbins: Todd, what you might want to do, if this goes any farther in terms of if it involves
the city at all, to see what we would endorse and what we wouldn't endorse. I would suspect
that there's been some people that would like to put some properties on there of a variety of
different types that if they're not going to be endorsed, then it's a tough deal. But if it is
within the specs and it can be developed, with a private sale, then why not do it. But it'd be
nice to know what it can do.
Gerhardt: I think it could be.
Robbins: Not tonight. I'm just saying you know.
Gerhardt: I don't know if anybody else would...
Bohn: I think we should let the staff come back and let us know what, maybe negotiate with
the owner.
Boyle: It seems to me between 17 cents and $4.00 is a long way to go.
CONSmER APPROVAL OF MODIFICATION NO. 1~ TO THE TAX ~N~REMENT
FINANCING PLAN.
Gerhardt: Thc I-IRA, Mr. Chairman, HRA members, I think it was our January or December
meeting that thc HRA directed staff to modify our Tax Increment Plan to include thc
construction of a pedestrian bridge and the acquisition of land necessary for that bridge to be
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Housing and Redevelopment Authority - Fehmm-y 24, 1994
constructed. Those plans that you're looking at acqui~g those on the south side of HighTM
5, east of the Legion. It sits on the Mortenson property. It's approximately I think about
23,000 square feet that you would be acqui~g over there for the touch down pad for the
bridge to sit on. We met with Mortenson- We feel that will be...They're very favorable of
the bridge. They'd like to see a bridge go ahead. Our things considered with this plan are
the roadway upgrades for Lyman, Powers. This is the joint powers agreement that we were
working out with the Cotmty and City of Chaska in upgrading county roads. Again lax
increment dollars to build the pedestrian bridge. Using tax increment dollars to build a
parking lot and trails and landscaping around the Hanus building in conjtmcfion with the
pedestrian bridge. It's one that you may not be aware of is the Willie Klein ~. The
Kleins are located down off of TH 101 next to the horse barn by Lake Susan. As you go
south on TH 101. Mr. Klein is in ill health. They're an older couple that live there on
approximately one acre. We have plans, they're in our comprehensive plan. We have, we're
going to realign TH 101 and upgrade that to 4 lanes with the consuuction of 212. However
the Kleins are another group of people that are sitting in a difficult position. They cannot sell
their pwpeny. It's right at this...of the road and the taking of their house would occur with
that realignment. Not too many people are interested in buying a house knowing that we'd be
coming in and building a road through it...So staff has added that as part of the
redevelopment plan and that's in the range of $100,000.00 to $130,000.00. That does not
lock you into, that you have to acquire it. We can bring lhat back as another item some
other...if you want us to pursue that or not. But we felt if things move along this stunmer
and the Kleins were more interested in selling, we could bring it back to you and put it on an
agenda. But then you don't have to §o through the modjficaIion- It's a lengthy process when
we §o through these modifications so, this does not lock you into having to acquire it. It's in
there as if you do want w. Then we don't have to go through basically the 60-90 day process
of modifying the plan for this one...so we've included it as a future acquisition.
Robbins: I would move that we accept the memo as stated with the following modification.
On the items where it says acquis/tions, leave the word acquisition in and put review for
acquisition.
Gerhardt: That's fine.
Boyle: Charlie, is that on both 5 and 67
Robbins: That'd be on 1, 5 and 6. I'm sorry 1 is appwved.
Boyle: One's already done.
Robbins: $o it'd be on 5 and 6.
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Housing and Redevelopment Authority - February 24, 1994
Boyle: Okay, thank you.
Robbins: 5 and 6 would read, review for acquisition, review for acqui.~ition, etc.
Gerhardt: With the last item of change in your program is we've modified the boundaries...to
move ahead with the county road and joint powers agreements. We are spending those
dollars on those roads within the project area boundary and also we've extended it up to State
Highway 101 to the north. We will have to address that road issue in the near future and you
will see more information from staff on that as we start to work with the counties, the cities.
We're trying to work out an agreement now or be with the abutting cities. You've got Eden
Prairie. You've got Hennepin County. Carver County. Minnetonka and MnDot, the State.
When Town Line Road gets completed, that will be a four lane roadway that we taper down
into what is existing TH 101. The traffic that is going to come off of that highway and dump
onto TH 101 is just going to be a horrendous mess and staff is working and planning on
trying to work with these bodies to look at upgrading TH 101. It's just going to be a mess if
we don't start looking at that process and...a priority. And in conjunction with that, maybe
special funding, creating a special tax district or something to try to fund that. You extended
the project boundary, if the HRA seems that they want to get involved in this, you could
spend your monies in that way.
Bohn: Do we have a second for the motion7
Boyle: On Charlie's motion?
Bohn: Yes.
Boyle: I'll second that motion.
Bohn: Discussion?
Robbins moved, Boyle seconded that the HRA approve the attached resolution as
modified on items $ and 6 to read, "review for acquisition'* and request the City Council
to hold a public hearing on March 14, 1994 (See Attachment it3). All voted in favor and
the motion carried.
Robbins: So then you'll modify that...?
Gerhardt: Yes.
Boyle: Does that include now what Todd just proposed on the TH 1017
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Housing and Redevelopment Authority - February 24, 1994
Robbins: Yes.
Boyle: On both legs, okay.
Nancy Mancino: I just have a quick question...a__t~_chm~_ t $~3. Todd, when you looked at this
and that northern boundary is up north of Highway 5 all the way to the...is that an increase7
Does that take into that land...
Gerhardt: We cannot collect_in those areas. We cannot modify the tax increment area you
can collect increment. All this does is allow us to spend increment dollars outside there and
allows us...
CONSIDER CHANGING MARCH MF~ETIN(~ DATE.
Boyle: Well we'd better wait until Charlie gets back. I guess I would prefer the March 31st
one. I tbinir we'd better.
Bolm: We're changing the March date. We have to because.
Boyle: Yeah, I would prefer the March 31st. That would be my reco~tion.
Gerhardt: Mr. Chairman, we could wait for Charlie on this ilern. We're just looking for a
possible rescheduling of our March meeting due to conflict with a special meeting set up by
the Min~ewnka School District who wants to meet with our City Council to discuss some of
their facility planning issues that exist in Minnetonka. And both Don and 1Wflm felt it was
important that they attend that meeting. They also feel it's hnpormnt to be at the HRA
meetings. They're both absent tonight. Mike had another conflict tonight and Don's out of
town. They want to be at the lIRA meetings and asked me to solicit your input ff you would
be int~-~strxi in charting that meeting for March.
Boyle: March 31st meets better with mine but I could do either one.
Bolm: That's fine with me.
Robbins: $o moved.
Rec, and also they'd like to meet with the HRA at the April to go through your goals and
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Housing and Redevelopment Authority - February 24, 1994
objectives and discuss those for the coming year. So they're trying to do that at each of the
commission member's f'trst meetings in April. So our April ~g, we'll try to keep the
items light and meet with just both you and City Council to discuss your goals and
objectives.
Bohn: Would that be a regular meeting?
Gerhardt: It will be the regular date. It will be at 7:30...
Bohn: Because it seems like every time the I-IRA has a meeting with City Council, the City
Council drives the meeting.
Gerhardt: Well this one I would hope would be more of a relaxed meeting. You just sit
around one table and just go through the goals and objectives.
Boyle: I would have no problem with that if that's the way it went, and it's a roll up your
sleeves. Okay, let's talk about it...
Robbins: Would you make sure you inform former Councilman Wing of this meeting as
well.
Geflmrdt: Well the entire Council is invited. They've asked to meet...
Boyle: So that would be on April 21st then as currently scheduled?
Gerhardt: Well Jim had the calendar. Is that the date?
Bohn: April 21st is it, yeah. Do you need a motion?
Gerhardt: No, you do not need a motion.
CONSIBER AWARD OF BID FOR DEMoLrrlON 01~ TIlE APPLE VALLEY RED.~.
MIX PLANT.
Gerhardt: Well there is some good news tonight. Staff opened bids for the demolition of the
Apple Valley Red-E-Mix this last Tuesday and we were real please~ to see that the bids...
There were 10 bidders. I think in the past we've had 4 or $ so contractors out there are
hungry. The bids that were received were wide in range from $25,865.00 up to $59,000.00.
The low bidder was Wickenhauser Excavatin§... Staff i~ aware of Wickenhauser. They have
bid on other projects of our's. They had not received bids before from us and were not low
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Housing and Redevelopment Authority - February 24, 1994
bidders on any of the other projects. But they have done projects in the area and staff would
recommend that the HRA award bid to Wickenhauser Excavating far the amount of
$25,865.OO.
Robbins: Now Todd, on page 2 where you indicated the project dates...infl~on, whatever.
Are those quite firm or is there a penalty if the company does not ped~ or does this follow
normal bid, where we bid these out where they have to be done by a date.
Gerhardt: They have to put up earnest money of of 15% of the bid price and if they do not
meet those deadlines, we can use that money to go out and hire somebody else to ~nlsh the
work. So we keep 15% contingency on a project and so I feel comfortable with them.
They're anxious to get out there and I think they will meet the deadlines. They'd like to get
started tomorrow. And it's a mat~ of getting the conlracts and the...
Robbins: I would move that we accept the memo as dated 2/18/94 for the demolish d Apple
Valley and award it to Wickenhauser Excavating.
Bohn: Is there a second for that?
Boyle: I'll second it.
Robbins moved, Boyle seconded to award the bid for the denmbh of the Apply Valley
Red. E.Mix plant to Wickenlmuser Excavating, Inc. for the amount of $25,865.00. Ail
voted in favor and the motion carried.
CONSIDER TERMS OF LEASE AGREEMENT WITII RUSS PAI.~LY, PAIfl.,Y'$ BAR,
Gerhardt: Item 6 is one, at our last HRA meeting the HRA direct~ staff to meet with Mr.
Pauly to discuss a possible lease ~on for Pauly's Bar. Staff met with Mr. Russ Pauly
and Mr. Roos on February 16th to I guess discuss what rates are in town and what would be
a fair and equitable rate. I asked Mr. Roos to ~end that meeting ~ discussing it with
Russ, if he felt Mr. Roos would be a person that could you know give us fair information and
Russ agreed that...could facilita~ that ~g. With that in mind_; Mr. Roos tin,tided us with
ranges of rents in the area from $6.OO to $10.OO and everybody associates their own rent and
with that stuff wanted some special provisions that went along with it Ru~s you know
completely manage the building itself to take off any burden that I may have to play in that
as a pmlm'ty manager. And with that we came up with a range of $4.75 to $6.00 a square
foot. Mr. Pauly felt that, he felt there may be more management in there than what those
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Housing and Redevelopment Authority - February 24, 1994
dollar amounts reflect. And in my conversation with Russ, I Wld him that he could come in
to the HRA and explain what he felt those...Right now it's staff recommendation that the
HRA come within some range of the $4.75 and $6.00 for a one year lease extension to
Pauly's.
Bohn: Why one year? Why not until we decide what we are going to do with that property7
Gerhardt: The one year, it's up to the HRA how long you'd like to extend that lease. For
your information, when Russ was going through his site plan approval for the Kenny's site,
the City Council kind of made a recommendation to Russ that they would like to see a one
year extension for him over on that site. That's up to you how far you want to extend that
lease or how long you want to but that was the direction that the City Council...that back to
you.
Bohn: At the present time we have no plans for putting anything on that building, on that
site.
Gerhardt: The only plans that we may have right now is, as we go through the vision
meetings, there has been discussions that the church plays an important role in the downtown
as an historical architectural statement. And there were discussions brought up at those
meetings, if I understand it correctly, that they wanted to see more of a presence of that
church. And that the area out in front become of a pocket park green area. And then there's
also future plans for a library that we've discussed there but pan of the Vision 2002, we're
trying to prioritize and get a feel where that group would like to see some of these things
occur and that group has not fleshed their work yet. And until we get that priority list from
them and some site locations for some of those other uses, you're correct in saying that we
do not have any strong plans...
Robbins: I guess with that in mind, as Brad Johnson's indicated, things don't move real
quick so you know a one year lease, I would think that would be one year would work but I
would think you'd want to make it longer than that because no matter how long it takes to
get things going, and if we were not going to be doing the deal within a couple years
anyway. So if you've got a 2 year minimum with a renewal option at 6 months, I'm sure
that would be more in line to do something. As far as the dollars, I can't comanent about
dollars because I'm not a person that knows values of the rental. I think that's something
that can be worked out between Mr. Pauly, Mr. Roos, yourselves, whoever as far as the
structure of the lease agreements. I don't think that's the liRA's perrogafive to be doing
lease agreements. I think we have to endorse it and that's what I'm saying, I'm endorsing it.
I'd like to see a longer term on that lease for the comfort level of us as well as comfort level
of the tenant because both of us want to be able to work together.
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Gerhardt: Well I guess my comment to that would be, you may decide you want to build a
library in Suly and the planning and everything will take at~oximately 6 months or so but
you've lost a year and a half then.
Robbins: Mr. Pauly, I can also ~t to that. Mr. Pauly might also decide that he's got a
new site he wants to build within 6 months and he's locked in. So it can wot both way~
You know if the lease is one hour or one year or 10 years, it can always work both ways.
That's what leases are for.
Cveflmrdt: Then I would say maybe we need to go into a month to month you know and that
would be flexible for each party.
Boyle: I don't know, Russ. Would you like to comnmn_ t?
Russ Pauly: Well...business if you're going to go on a month to month lease basis.
Robbins: I've never seen business go month to month but.
Russ Pauly: I mean basically in this situation, I mean you guys sre pretty awsre d what
we've been going through. We're in an ongoing situation here. We're trying to relocate a
business. I'll get up here and speak.
Boyle: I'm sure your voice is going to project okay but.
Russ Pauly: My name is Russ Pauly. I live at 1031 Carver Beach Road in C~anha~en. I've
been a life long resident of Clumhassen. Basically you know I guess we've been in an
ongoing situation with the city here as far as our tmslness. We were displaced by the
downtown redevelopment and as a result of that we continue to try to relocate our bar and
restaurant business. You're all familiar with the Kenny's location. We tmrmed that for
roughly 10 months and as a result of 10 months of work and thousands of dollars of money,
we were shot down by the City Council when it came to trying to get our liquor license
transferred. Basically in this situation, what we're looking for is the same consideration that
other businesses have received. Say C~nhassen Lawn and Spore. You know typical
business that has gone through the same process. I don't know that Bernie Hanson paid 10
cents. I don't know that he paid $3,000.00 a month. I don't know what the situation was
there but the fact is that businesses that have been affected by the downtown redevelopment
and that continue to try to relocate the business, I guess I'm looking far the same
consideration that those businesses have received. And in the meantime our intention is ix)
keep the building, the exterior and the internal parts of the business and bnil~ing up to date.
You know not let something just go to the point where it's falling down or anything like that.
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Housing and Redevelopment Authority - February 24, 1994
I mean that's not my intention. If we're going to stay in business obviously we want to
continue to present something to the public that they're willing to come in and spend their
money so.
Boyle: Russ, are you still pursuing new locations?
Russ Pauly: Well at this point, after the Kenny's deal, at this point there isn't anything that's
readily out there, no. There isn't anything that's come to our attention or we haven't had
anybody approach us and we haven't continued any additional.
Boyle: Todd, does staff know of any locations that might be suitable that would help Russ
relocate his business within the city limits?
Gerhardt: Well there is this Wendy's site...I have had conversations with Brad regarding
Bloomberg Companies and are still pursuing the viability of the movie theatre. That it may
be incorporated somewhere over by the bowling center. Or behind the Dinner Theatre in that
location. And with that I said, no. Russ is really looking for a spot to continue his operation.
I think Russ would be willing to work with you on looking at a family type operation and
with full liquor and so I've been trying to work with Brad in loo~ng at options over there. I
don't know if that interests Russ or not but I told Brad to contact him for if he's looking for
an option for a restaurant like that they could consider... But other than that, other locations.
I do not know what Charlie James is doing. There's been...and Applebee's and things like
that kind of format that Russ is proposing at Kenny's. Kind of there are other possibilities of
that maybe being part of the Byerly's strip retail.
Bohn: How about the Filly's dance hall? Where does that stand in ownership?
Brad Johnson: ...I _think that's what Todd and L
Gerhardt: Yeah, I mean that's what I think Brad was trying to pursue with the bowling,
movie theatre, restaurant type complex in that area.
Bohn: Who owns it?
Gerhardt: Right now it's owned by Dan Moline is the owner of the bowling center.
Bohn: How much does he owe us7
Gerhardt: I think it's getting close, I think this year he continues to pay, he's current on '93
taxes but still is delinquent on '92 and '91. So I think he's getting close to the deadline that
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Housing and Redevelopment Authority - February 24, 1994
he's got to come up with those monies or have an auction.
Bohn: How about the loan?
Gerhardt Thc loan he, I think he made, is ~ delinquent but has made pa~ts this last
year but he's still delinquent on...
Robbins: I guess back to Russ. Russ, what are your thoughts regarding a one year lease, 18
months, 2 year or month to month, hour to hour. What are your thoughts on this deal?
Russ Pauly: Well on anything that's month to month, you can't plan.
Robbins: That's facetious.
Russ Pauly: I mean you can't plan if it's on a month to month basis. I mean that just goes
to say but I guess my thoughts are, in regards to any kind of a lease, I think I should be
given some consideration based on what's happened in recent months as far as the Kenny's
location is concerned and the fact that we are pursuing another location. It's not like we just
want to sit there and wait until the, say the last dog is hung. I mean we want to stay in
Chanhassen but our options at this point now are a little limited. If thc city is willing to
extend thc lease beyond possibly a year then I might be willing to discuss a little bit more as
far as in the form of rent. At this point I don't feel that we should have to pay any more
than any other displaced business that was allowed to continue in their existing location until
they found a new location basically.
Boyle: Sounds like a compromising position. Todd, in reading this I'm a little confused. Is
it the number, tonight we're going to vote on the man of the lvame. One year, 18 months,
whatever and the rental amount? I mean what Charlie says, I'm not quite sure that we should
be d~ining what the rate is.
Gerhardt: If you want, I don't know how else we're going to come to terms and I think the
real question here that Russ has is that he needs a decision fairly quickly because he needs to
know if he's going to renew hi, liquor license. From staff's aspect, with a one year lease...
you guys should still have some control over the property and if you do decide that you want
to do something within the year, that you have that option of doing something.
Robbins: I guess back to my original statement is that I would be amiss in saying that I think
a land is worth $2.00 or $4.00. I really don't know the values of the rents so I don't think
that's something we can decide tonight. I think it needs to be decided ~ Russ and the
city indicating that yes, this is fair on both sides and then you come up with your ~
Housing and Redevelopment Authority - February 24, 1994
package based on whatever the dollars are. Russ might say $2.00. You might say $4.00.
$3.00 might be comparable or whatever the numbers are so I don't thirtk we can say we
dictate the rents. We don't. We endorse it. That's what I'm saying. We endorse the
concept but we're not going to put dollars or the number of dollars because we don't know
what that number is. The other side of it is, is that secondly on the, whether we're going to
approve it on the terms of the lease, we don't know who owns this anyway and I think that
needs to be worked out. We're just a body that's going to be part of this deal. And if we're
looldng at this as Roman Roos or whoever to determine the value for the city to put together
a deal. In coming up with that, as long as buyer and seller are agreeable to it, then we've got
a deal. It's real simple. But I would be, I'm in favor of extending the lease.
Gerhardt: I have no problem sitting down with Russ and I think that both of us can come
to... I think Russ and I have a great working relationship and I do understand that he needs to
be there and I would not operate his business on a month to month. I don't think that's fair
to his employees or fair to...but I guess the point I was trying to make is if you should decide
that you want to put a library there or that you want to put a park there and that came out as
part of the Vision meeting and you wanted to do it within the next year or two years, you do
not have that option. If you go into a 2 year lease with Russ, you're going to have to wait
those 2 years.
Bohn: I'd very surprised if we get a library there in 2 years.
Robbins: Or 3 years.
Bohn: It seems like it takes us forever for us to get anything done.
Boyle: Well nonetheless, you don't want to go too far.
Bohn: Right. I think 18 months with an option.
Russ Pauly: Well any lease can be renewed or renegotiated. A 2 year lease renegotiated at
18 months or 2 years renegotiated at 1 year.
Boyle: I kind of lean towards the 18 months that's...and then you come back to us and kind
of give us an idea of what you guys think. I have no idea ff $4.75. With Charlie, $4.75,
$6.00, I have no idea what's fight or not.
Robbins: Because Russ might decide he finds a property within 3 months and he's going to
want us to go the other way with a lease and get out of the lease. You know if we get a
library or if he gets a place to go, it's going to work both ways so ! like the option.
Renewable after x period. Whether it be 18 months or 2 years or whatever. $o I would, do
Housing and Redevelopment Authority - February 24, 1994
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you want me to make a motion on that or what?
Boyle: Why don't you Charlie. You've said most of it already.
Robbins: I would motion on what I said. We exend a lease to Pauly's Incmpora~ for a
minimum mm of 18 months or beyond with the rent space, the roms of the ~se to be
jointly negotiated with Pauly's and the City.
Bohn: And approved by the liRA.
Robbins: And approved by the HRA.
Boyle: And brought to the HRA for approval.
Gerhardt: Yeah, we'd have to bring the lease back for formal approval.
Bohn: With an option after the 18 months.
Gerhardt: I have no problem with that.
Audience: You should put a notice in there too because...
Robbins: Speak up...
Audience: Could you guys put a notice in there that you should be given 6 to 8 months
notice?
Robbins: That would be in the lease...it will be in there.
Boyle: 18 months?
Robbins: Minimum of 18 months.
Boyle: I'd second the motion of 18 months.
Bohn: h's been moved and seconded. Discussion.
Robbins moved, Boyle m~x)nded that the HRA to extend the lease for Pfmly's Bar for 18
months with the terms of the lease to be neL~ between Rum Pauly and the City
staff. All voted in favor and the motion tarried.
Housing and Redevelopment Authority - February 24, 1994
APPROVAL OF BILLS:
Robbins moved, Boyle seconded to approve the HRA bills as presented. Ali voted in
favor and the motion carried.
Robbins: Todd, would you comment where we stand with the Byerly's deal Is that going
yet or has that really started because I know there was a rush. You know the 20 days to get
it going. Now it looks like there's not a whole lot going on down there. Do they have their
financing and is everything in place7 Are they going down or what's going on?
Gerhardt: The last conversation I had with Charlie James is that he was looking to move dirt
at the end of February. He made the decision, typically when you put a brick building up,
you put either a brick wall or a cinder block wall to attach the brick to it. So in winter
construction, you have to construct one of these heated vapor barriers so...and with that you
heat the blocks so they can set up properly. Another option available to Charlie was to do
that with a tilt up concrete panel and attach the brick to that. So what they're doing right
now is tilt up concrete panels are being made I think over in Savage or some place like that
and those will be completed, what he had told me the end of February and he would start
putting footings in end of February, early March. They said the reason they haven't started
grading is because the dust blanket or insulation for the site is the dirt itself. On that site you
have to go down, and I think he's got 2 to 3 feet off the top and that will in fact be the
insulation. That's why he is not grading the site. He wants to go out there and grade it and
then put footings in at the same time as he's pulling dirt so you do not have to keep the
frost...So right now everything is on schedule. I had heard mmors...that Byerly's had not
signed a lease yet but I would think that they're moving ahead. They came in and got their
liquor license here this last week for their off sale. I have, they could still meet their time
table of I think October. Charlie's out of town this week. I think it did take 10 or 20 days
Robbins: But just being realistic, if Byerly's has not signed a lease, why would he start
considering going through all that ground grading ff there's no lease signed?
Gerhardt: Charlie has financing in place. He has the financial...to go ahead and build that
building without having any tenants pre-signed. He does have the intent or an agreement
with Byerly's and I...discussions regarding some dollar amounts and I'm not privy to any of
that but...as far as our agreements are with him, he only gets the increment if he builds
something and pays taxes on it. He doesn't get anything unless he does that. The HRA's
very secure in this and Charlie has told me that he would not...until the end of February and
we're getting close and he is ~g things down over there so it looks...
26
Housing and Redevelopment Autharity - Felxua~ 24, 1994
Boyle: I just have one question. The~e was a lot of discussion at the beginning of tonight's
meeting and I'm a little confused on one area. February 28th, is there a presentation to the
City Council?
Gerhardt: No. There's no presentation to the City Council City Council has asked the City
Manager to get the City Attorney to give a Fi'_ndlngs of Fact of the agreement that you have
with Bloomberg Companies and that's what's going to be presented to the City CotmciL
Robbins: I guess when I think about what Dick Wing was saying about the team effort and
all this and that's the way...
(Taping of the ~g ended at this point in the discussion-)
Boyle moved, Robbins seconded to adjourn the meetinl~ AH voted in favor and the
motion carri~ The meeting was adjournS.
Submitted by Don Ashworth
Executive Director
Prepared by Nann Opheim
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CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
DATE:
Homing and Redevelopmem Authority
Todd Gerhardt, Assistant Executive Director
March 25, 1994
SUBS:
Consider Approval of Russ Pauly's Lease
After the last HRA meeting, staff met with Russ Pauly w negotiate a market rate lease within
the terms set by the liRA. However, staff was not able to come to tarns with Mr. Pauly on the
lease rat~. Mr. Pauly is requesting a below nm-k~ rate for the building. As you know, staff
hired Roman Roos to give his professional opinion regarding what the mark~ rate rents are in
Chanhassen. Mr. Roos determined that the range for this facility should be between $4.75 and
$6.00 per square foot (see Attachinent #1).
The HRA has a responsibility to the residents of this community to ~e a rate that is based
on what the market in Chanhassen can rappen, h is staff's opinion that if the HRA goes below
this range it will create unfair comp~tion between Pauly's and other liquor/restaurant
establishments in the community, Lc. the Riviera, Dinner Theau~ Bowling Center, etc.
Staff agrees with Mr. Pauly that the lease should parallel the May 1 liquor license renewal date
and also that extending the lease to May 1995 should be at a lower rate than if it were ext~nd~l
to May 1, 1996. Accmdingly staff has sent two proposals m Mr. Pauly as follows:
le
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One year ~ (May l~y 1995) at $4.75 per sq. ft.
'.
Two year lease (May 1994/May 1996) at $6.00 per sq. ft.
ATTACHMENT
1. Let~ from Roman Roos
2. Leases
February 17, 1994
Eden Prairie Offic~
16395 Washer Way
Ed~ Prairie. MN
6~2;9~-~
hx
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 Chanhissen for retail space and the range of leeslng
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, ali generally paid by tho 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 Chanhissen would like to keep occupied eliminating
unnecessary costs, such as maintenance, utilities and taxes prior to tho actual need to
tear down the facility for redevelopment. Knowing this will oocur In tho future,
continued leasing by Pauly's oliminatis those costs and therefore this lease his value
to the City by being in place. In like'manner, Pauly'8 his an ongoing buslniss which
can continue for the immediate future and therefore tho facility his value to thom. It Is
these two values that can be used to adjust a fair market rate to a level fair to both
parties.
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Page #2
Pauly'a/Chanhassen
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I am suggesting that the base market rate for the Pauly's fa~'ll~ is at least $8.00 per
aCluare foot. Since Russ will maintain the building, I suggest the annual rent role be
reduced by 3% as a management fee. If Pauly wan to be replaced with another
tenant, there is the probability of paying a $5,0(X).00 leasing ~omm~~. This cost
along with minor concessions for ~onvanlance, goodwill, and ~ontinulty bring the base
rent down to $4.75 per square foot or ~2.8,500.00 annual rent. This rate and its
method of adjustment should be extremely fair to Pauly's and the City and N'~uld be
acceptable to both.
I am open to any additional questions that the HI=IA, you or Runs may have. I
sincerely hope an amenable ~olution Is reached.
Sincerely,
Roman Roos ~X,
Bumet Realty
RR/pr
cc: Russ Pauly
l
LEASE AGREEMENT
13~36
f03/17/~4
THIS AGREEMENT is made and entered into this day of ,
1994, by and between THE HOUSING AND Rk'~EVELO~ AUTHO~ IN AND
FOR THE CITY OF CHANHASS~, a public body corporate and politic under the laws of
the State of Minnesota ("Authority") and RUSSI;.T.I. I~AULY ("Tenant").
1. LEASE. The Authority hereby leases to Tenant, subject to the terms and
conditions of this Agreement, and the Tenant hereby leases from the Authority the propert~
described on the attached Exhibit "A", together with all improvements and fixtures located
thereon (hereinafter the "Subject Property").
2. TERM. This lease shall commence on May 1, 1994, and shall terminate on April
30, 1995, unless sooner terminated under the terms of this Lease.
3. RENT. The Tenant shall pay to the Authority rent of $31,540.00 for the term
of this Lease payable in equal monthly installments of $2,628.134 payable in advance on or
before the first day of each month.
4. TENANT'S COVENANTS. Tenant hereby agrees as follows:
(a) To use the Subject Property only for the purpose of a restaurant with on-
sale liquor and related activities, so Ions as any such related activities are consistent with
all applicable laws and ordinances and are acceptable to the City of Chanhassen.
(b) At all times during the term of this Lease, the Authority shall have the
right, by itself, its agents and employees, to enter into and upon the Subject Property
during reasonable business hours upon reasonable notice for the purpose of examining
and inspecting the same.
(c) Not to assign or sublet his interest in the Subject Property pursuant to this
Lease, except that Tenant may assign or sublet his interest in the Subject Propmy to any
member of his immediat~ family or to a l:m'mership or corporation of which he or any
immediate family members have and maintain controlling interest. Notwithstanding any
such assumption, Tenant shall at all times remain obligated to perform all terms of this
Lease Agreement. In addition, Tenant shall not mak~ or suffer any alteration to be made
~ HRA:PAULY REST.
LEAIE, C~E YEAR TEFIM
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in or on the Subject Property without tho written consent of the Authority and shall not
allow any liens to be placed on the Subject
(d) Not to call on the Authority to make any improvements, repairs,
replacements, or main~ on the Subject Property of any nature whatsoever, and
Tenant hereby specifi~y covenants and agrees to keep the Subject Property in good
(e) The Authority shah maintain certain parking lots in accordance with the
agreement between the parties dated August 11, 1993.
(f) The Subject Pwpmy described herein may be used for the purposes stated
in paragraph (a) above. The Tenant shall comply with any and all laws, rules,
regulations, or ordinances imposed by any jttrisdiction affectin~ the use to which thc
Subject Property is put. Inability on the part of the Tenant or his assignee or sublessee
to comply with any of said laws, rules, regulations, or ordinances will not relieve the
Tenant of his obligation to so comply.
(g) The Tenant shah maintain a standard form policy of comprehensive
general liability insurance covering the Subject Pwper~ during the term of the Lease in
the following amounts: minimum coverage per person per occurrence of $600,000;
minimum coverage per occurrence of $1,000,000. Prior to execution of this Lease, the
· Tenant shall furnish the Authority a certificate of insurance acceptable to the Authority.
The Authority shall be named as an additional insured on the policy.
(h) The Authority is not obligated to, and will not, maintain insurance on the
Subject Property insuring against loss by fire, lighming, or any other risk customarily
covered by insurance for loss of or dama~ to property. In the event the Subject Property
is damaged or destroyed during the term of this Lease, the Authority will have no
obligation whatever to repair, restore, or rebuild, nor in any other manner to provide
Tenant with tenantable ~. Tenant will, at his option, insure.against any losses he
may suffer as a result of an event of damage or desml~on to the Subject Property by
purchasing, at his own cost, busineu interruption insurance, or some similar type of risk
coverage insurance, to protect his interests.
(i) Tenant shah pay aH utility ehar~es incurred during the tm'm of this Lease
before they become delinquent.
(j) Tenant shah pay all real estate taxes and instnHrnents of special assessments
for the Subject Pwpm~ due and payable In the years 1994, 1995, and 1996 within ten
(x0) days niter the Authority deumnds paymenc
(k) Tenant shall maintain dram shop insurance cover~e as required by
Minnesota hw.
I.
(1) Should the Tenant hold over after the expiration of the term of this Lease
with the consent of the Authority, express or implied, said tenancy shall be deemed to
be a tenancy only from month to month, subject otherwise to all of the terms and
conditions of this Lease.
(m) If default shall be made in any of the covenants or agreements on the pan
of Tenant contained in this Lease, the Authority may, at its option, at any time after such
default or breach, notify Tenant thereof in writing and Tenant shall be given a period of
thirty (30) days in which to cure the same. If the default is not cured by Tenant within
said thirty (30) day period, the Authority may, at its option, and without further notice
to anyone, in addition to any other remedies it has terminate this Lease and re-enter and
take possession of the Subject Property and remove all persons therefrom.
(n) To indemnify, save, and hold harmless the Authority and any agents or
employees thereof, from all claims, demands, actions or causes of action of whatsoever
nature or character, excluding those caused by the negligence, the willful act or omission
on the pan of the Authori'ty, its agents or employees, arising out of or by reason of the
lease of the Subject Property by the Authority to the Tenant.
$. CONDmON OF PROPERTY. The Tenant has examined the Subject Property
and is satisfied with its condition. The Tenant agrees to rent the Subject Property in "AS IS"
condition without reliance upon any representations from the Authority about the condition of
the Subject Property. Tenant acknowledges and agrees that the Authority has no obligation
whatever to maintain, repair, or replace the Subject Property, nor any portion thereof, for any
reason whatever. Tenant further acknowledges and agrees that any destruction, damage,
deterioration or condition of the Subject Property that renders the Subject Property unfit for
occupancy or for Tenant's proposed use, or any determination by any governmental body or
agency to such effect, shall terminate this Lease and entitle the Authority to recover possession
of, and remove Tenant from, the Subject Properly.
&. NOTICE. All notices, certifi~atea, or other communications required to be given
to the Authority and the Tenant hereunder shall be sufficiently given and shall be deemed given
when delivered or deposited in the United States mail in registered or certified form with postage
fully prepaid and addressed as follows:
1:~..16 ~ HRA:PIULY I~s'r.
r03/17/14 3 LEAIP., ONE YEAR TERM
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IF TO THE AUTHORITY:
Housing and Redevelopment Authority
in and for the City of Chanhassen
690 Coulter Drive, Box 147
Chanlutssen, Minnesota 55317
Attention: Mr. Don Ashworth
Russell Pauly
7561 Great Plains Boulevard
Chanhassen, lVfinnesota 55317
The Authority and the Tenant, by notice given hereunder, nmy designate different addresses to
which subsequent notices, certificates, or other communications will be sent.
XN WITN~S Wi:I~F, this a~t has been executed by the parties the day and
year first above written.
HOUSING AND I~:nHV',:I O~ AUTHO~
IN AND FOR THE CITY OF CHANHASSEN
BY:
Its Chairperson
Don Ashwonh, Executive Director
RUSS~-V-x- PAULY
13236 CHAN HRA:ffAULY
ff0~/17J~4 4 LEA~. 01~ ~ TBIM
All that part of the following described property: Commencing at the Northeast corner of the
Northwest One-Quarter (NW~) of Section 13, Township 116, Range 23, Carver County,
Minnesota; thence West along the North line of Section 13, 97 feet; thence South parallel to the
center Section Line 132 feet; thence l:~t to the quarter Section line; thence North along the
quarter Section Line to the place of beginning;
EXCEPT the North 33 feet thereof; and
EXCEPT the South 20 feet thereof; and
EXCEPT all that part thereof which lies easterly of the following described line and its
extension: Commencing at the Northeast corner of the Northwest Quarter of Section 13,
Township 116, Range :23, Carver County, Minnesota; thence on an assumed bearing of North
88o57'54" West, along the North line of sa.id Northwest Quarter for 2.26 feet to the actual point
of beginning of the line to be described; thence South 00o01'40" West for 112.04 feet and said
line there terminating.
13236 Ct, tAN MR.&:PAULY REIT.
rOa/'l 7/14 LEASE, ONE YLd.q TEAM
03:25:94 16:02 '~612 452 55250 CAXPBELL ]D,%'TSON -)-,+ CHA.Y. CITT HALL KI002,"00?
AGR I;. _MF. NT
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~ AGREF~--~IT is made ar~ entered imo this
d~y of
1~4, by and between THE HOUSING AN]) ]t~nEVI~OPMIOqT AUTHORrTY IN AND
FOR THE CITY OF CHANHASS]~, n public body ompon~ and politic rm&r the hws of
the State of ~ ("Authority') and RU~aQ~L PAULY ("Tenant").
1, I.;.~T~.. The Authority hereby lenses to T_~nrtt, subject tO the terms and
conditions of this Agreement, and the 2'~nant hereby leases from the Authority the property
described on the attached Exhibit 'A", together with all improvements and fixtures located
thereon (he~-e~m=~ter the "Sutyject
2. TERM.. This lease shall commence on May 1, 1994, and .~! tm'w;-~_W on April
30, 1996, unle~ ~ooner terminated under the terms of this
3. RENT. The Tenant shall pay to the Authoxity rent of $79,600.00 for the term
of this Lease payabl~ in equ~l monthly installm~ of $3,316.67 psysble in advance on or
before the first day of each month.
4. TENANT'S COVENANt. Tenant hereby ~grees ss follow;:
(a) To use the Subject Property only for the ~ of a mmurant with on-
sale liquor and related activkies, so long ~ any such rela~ activities are consismnt with
all applicable laws and ~ces and are acx~ptable to the City of Chanhmsen.
(b) At all times during the term of this Lease, the Authority shall have the
right, by itself, its agents and employe~, to enter into and upon the Subject Profm't~
during reasonable business hours upon reasonable notice for the purlmse of examining
(c) Not to assign or sublet his intm*est in the Subject Property lmrsuant to this
Lease, except that Tenant may assign or sublet his interest in the Subject Property to any
member of his immediate family or to a pm'menhip or corporation of which he or any
immediate family membezs have and maintain cont~ inlm, est. Notwithsmpdlrt~ any
such ,_~edmption, Tenant sh_nJ~ at all time~ remain obligated to perform an terms of this
Lease Agreement. In addition, Tenant shall not make or suffe~ ~my alteration to be made
TERM
· . .' -~,+~ . t.:.l.'J.-~" ,ltALL ~]003.'007
in or on the Subject Property without the written consent of the Authority and shall not
allow any liens to be placed on the Subject Property.
(d) Not to call on the Authority to make any improvements, repairs,
replacements, or maintenance on the Subject Pro~ of any nature whatsc~ver, and
Tenant hereby speei.fically covenants and agrees to keep the Subject Property in good
order and condition and to make all improvements, repairs, replacements, and
maintenance all at his own cost and expense.
(¢) The Authority shall maintain certain parking lots in accordance with the
agr~mcnt between the ~ dated August 11, 1993.
(f) The Subject Property described herein may be used for the purpo~ stated
in paragraph (a) above. The Tenant shall comply with any and all laws, r~les,
r¢tulations, or ordinances imposed by an:/jurisdiction aff~d,nf~ the use to which the
Subject Prolm'ty is put. Inability on the pan of the Tenant or his assignee or sublessee
to comply with any of said laws, rules, regulations, or ordinances will not relieve the
Tenant of his obligation to so comply.
(g) The Tenant shall maintain a standard form policy of comprehensive
general liability insurance covering the Subject Property during the tam of thc Lease in
the following amounts: minimum cover-~ge per person per occurrenc~ of $600,000;
minimum coverage per occurrence of $1,000,000. Prior to execution of this Lease, the
T~ant shall furnish the Authority a certificate of insurance acceptable to the Authority.
The Authority shall be named as an additional insured on the policy.
(h) The Authority is not obligated to, and will not, maintain insurance on the
Subject Propony insuring against loss by fire, lightning, or any other risk customarily
covered by insurance for loss of or damage to property. In the event the Subject Pro~
is d.~rnaged or destroyed during t.M term of this Lease, the Authority will have no
obligation what~,er to repair, restore, or rebuild, nor in any other manner to provide
Tenant with tenantable property. Tenant will, at his option, insure against any losses he
may suffer as a result of an ewnt of damage or destruction to the Subject Pwperty by
purchssing, at his own cost, busings interruption insurance, or some similar type of risk
coverage insurance, to protect his interests.
(i) Tenant shall pay all utility charges incurred during the term of this Lease
before they become delinquent.
(j) Tenant shall pay all real esmt~ taxes and installments of specia~ assessments
for the Subject Pr~ due and payable in the years 1994, 1995, and 1996 within ten
(10) days after thc Authority demands payment.
(k) Tenant shall maintain dram shop insurance coverage as required by
Minnesota law.
13238
rO~ll 7/~4
~;I,.IAN HP,~PAULY RE~',
LIAr, TWO YIAR T~M
03/25**94 18:03 '~'~12 452 5550 '. CAKI~ELL ~'~,%~S0.~ -~-~.+ CEA,'~. CI'/T ~./, ~1004/00'/
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0) Should the Tenant hold over after the expiration of the term of this Lease
with thc consent of the Authority, expreas or implied, said tenancy shsll be deemed to
be a tenan~ only from month to month, subject oth~ to all of the terms and
conditions of this Lease.
(m) If default shall be made in any of the covenants or agreements on thc pan
of Tenant contained in this Lease, the Authority may, at its option, at any time after such
default or breach, notify Tenant thereof in writing and Tenant sb,ll be given a peric~ of
thh'ty (30) days in which to cur~ thc same. If the d~mlt is not cured by Temmt within
said thirty 00) day period, the Authority may, at its option and without further notice
to anyone, in addition to any other remedie~ it has Imminatc this Lease and re-enter and
take possesdon or' the Subject ~ srut remove all persons therefrom.
(n) To indenmify, save, and hold ~ the Authority and any agents or
employees thereof, from all claims, demands, actions or causes of action of whatsoever
nature or character, excluding those caused by the negligence, the willful act or omission
on thc pan of the Authority, its agents or employees, arising out of or by reason of the
lease of thc Subject Property by thc Authority to the Tenant.
CONDITION OF PROPERTY. Thc Tenant has examined thc Subject Property
and is satisfied with its condition. Thc Tenant agrees to rent the Subject Property in "AS IS'
condition without reliance upon any rcpresentsiions from the Authority about the conditio~ of
thc Subject Property. Tenant acknowledgu rout agrees tlutt the Authority has no obligation
whatever to maintain, repair, or replace the Subject Pzopcr~, nor any portion thereof, for any
reason whatever. Tenant further acknowledges and agrees that any destruction, damage,
deterioration or condition of the Subject Property that renders the Subject Property unfit for
eccupancy or for Tenant's proposed use, or any determinsgon by any governmental body or
agency to such effect, shall terminate this Lease and enlitlc the Authori~ to recover possession
of, and remove Tenant from, thc Subject Property.
6. NOTICE. AU notices, certificate, or other communications required to be given
to the Authority ~ the 'tenant hereunder {h~! be ~tly giveal ~d shall be deemed given
when delivered or deposited in the United States mail in ~gistem~ or certifi~ form with postage
13Z38 CHAN HI~GFA~Y REar.
7/94 3 ~ TWO Y~ TIRM
16:04 '1~812 4~2 ~$$0 CM/PB£LL IL~'I"T$0N ..*~ CK~N', CITY KtLL [~00~,'007
IF TO TlqI~ AUTHO~Y:
Housing and RedeveJopment Authority
in and for the City of Chanhas~
690 Coulter Drive, Box 147
Chanhas~,n, Minnesota 55317
Attention: Mr, Don Ashworth
I1~ TO TR'E ~ANT:
Russell Pauly
7561 Orcat Plains Boule-yard
Chanh~ssen, Minne.sota 5~317
The Authority and thc T~.ant, by notic~ given hereunder, may de$ignat~ different addrr~..s to
which subsequent notices, certificates, or other communications will be sent.
IN WITNF_~S WHEREOF, this agr~ment has been executed by the parties the day and
first above written.
HOUSING AND I?~r)~'VEL~~ At.rlHOR1TY
IN AND FOR THE CITY OF CHANHASSEN
]BY:
AND
Im Chairpe~on
Don A~hwonh, ~xecutive Director
RUSSELL PAULY
rO$/t ~'/~,~ 4 ~ TWO YEAh TEnM
03,'25,'9;
CAMPBELL K~'OT$ON -~-~-~ CHA.X'. CITY K4.LL
~OOO,'O0?
P
STATE OF MINNF. SOTA
COUNTY OF CARVER
The foregoin; instrument was acknowledged before me this day of
, 1994, by and by Don Ashworth, the
Chairperson and Executive Direc~ of The ~ng and ~opment Authority ia ~d for
the City of Ch~, a public body corporate and politic under thc hws of the State of
Minnesota, on it~ behalf.
NOTARY PUBLIC
STATE OF IVII2qN~OTA )
COUNTY OF )
--_
The foregoing instrument was acknowledged before me ~
, 1994, by RUSffRT J. PAULY.
day of
NOTARY ~C
D~ BY:
Campbell, Knutmn, Scott
& Fuchs, P.A.
317 ~_gandale Offico Centex
1380 ~ O_,mtm' Curve
~=-~?n, ~.nnesom 5512 l
Telephone: (612) 452-5000
RNK:srn
Gl,LAN I~IA.'PAULY RE~T.
03:25:94 18:05 '~812 452 $$$0 C~PBELL I~*[.'TS0.~ -~.-+ CK, tX. ¢ITI' K~LL ~007,'007
All that pan of the following described propea'W: Commencing at the Northeast comer of the
Northwest Oae-Quarter (NW',4) of Section 13, Township 116, Range 23, Carver County,
Minnesota; thence West along the North line of Section 13, 9'7 feet; thence South ~amllel to the
center Section line 132 feet; thence F, ut to thc qua~r Section line; thence North along the
quarter Section line to the place of beginning:
EXCEPT the North 33 feet thereof; and
EXCEPT thc South 20 feet thereof; and
EXCEPT ail that part thereof which lies easterly of the following described line and its
extension: Commencing at the Northeast comer of thc Northwest Quarter of Section 13,
Township 116, Range 23, Carver County, Minnesota; thence on an assumed bearing of North
88057'54" West, along the North line of said Northwest Quarter for 2.26 feet to the actual point
of beginning of the line to be describe; thence South 00001'40" West fo: 112.04 feet and said
line the~e terminating.
137.,38 C-I.fAN HRA:PAULY
r03/17/s4 LIAi[. 'TWO Y~n 'l'l~f~
P
CITY OF
3
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
Housing and Redevelopmeat Authority
FROM: Todd Ger~t, Assistant Executive Director
DATE:
March 25, 1994
SUBJ:
Consider Lease Extension for Don Kallestsd. Pon), Express Bar Site
At the HRA's last meeting, Don Katlesmd, PreVious owner of the Pony Express Bar, made a
request to the HRA to extend his lease a~ tl~ Pony ffxpress Bar sile. The lease arrangement
called for the HRA to purc~ the Pony Ext~s Bar from Mr. Kall~ for $~/)0,000 in
September 1989 and that he may then lease it back until ,September 15, 1991. h ~hing this
file, I was surprised to fred out that thc tam of thc lrau~ was until September 15, 1991. Staff
was under the irr~ression that Mr. Kallestad's term was thc same as Pauly's/Pl~ffzml~* leases.
However, under the lease Mr. Kallcstad was to pay rent based on paying the cummt years real
estate taxes and all thc utilities. He was also responsible w maintain Ihe property, and the
property could only be used for the following purposes: :recording studio, o~, and living
quarters in the second floor alm'tment.
-..
Under the terms of this agreement, Mr. Kallestad has idready received a three year extension to
the lease with no compensation to the HRA in regards to maflcet-rate rents for this facility. Staff
has also had a difficult time collecting rent and ufifitics from Mr. Kallestsd over the years (see
Attachment #1) .... - ":-,':i.-:: ::: '-i:~-:' ;-:'-.. :.:~ ~.:..':~.':-...... .-/.:--.:_.v: .. :...-.....:.::
Based on this information, mff would re~.,omxne~ that the HRA direct mff to prepare the
necessary notices to give Mr. Kallemd 90 d~ys ~dv~ncc ~ ~ to vacate the ~
with thc condition that Mr. Kallestad pays all outs. rending Utility bills.
ATTACHMENT ~i.~:
1, Delinquent Bills and Notices
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A.
Attorneys at Law
Th,,ma, .I.t.'.mH"l',.'ll
R, ~,.'r N.
TN,m,~s kl.
G,,n' G. Ft,chs
J., m,..., R.
EIl~,~tt B.
X l,cl'lacl A. Br,,I,ack
R~.,nae l').
December 31, 1992
Fax (612) 452-5550
I
District Court Administrator
Carver County Courthouse
600 East Fourth Street
Chaska, MN 55318
Re:
Housing and Redevelopment
Authority in and for the
City of Chanhassen
vs. Kallestad Enterprises, Inc.
Court File No. C3-92-1613
Our File No. 12668/29~
I
Dear Court Administrator:
Enclosed herein for signature by a judge and filing please
find Stipulation of Settlement and Order in the above-entitled
matter.
Best regards,
CAMPBELL, KNUTSON, SCOTT & FU~HS, P.A...
TMS:rlt
Enclosure
cc: Mr. Todd Gerhardt (w/enclosure)
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St, ire 317 · Ea,,mndale Office Center · 1380 Corporate Center Curve · Eauan, ,',,IN 551"1
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12/29/92
,,*
13:18 ~'612 452
STATE OF NTNNESOTA
COUNTY OF CARVER
Housing and Redevelopment
Au~hori~y ~n and for ~he
city of ChaAha~len,
Plaintiff,
Kallestad Enterpr:Lees, Inc.,
a M/nnesota corporation,
Defendant.
· ' DISTRICT COURT
FIRST ~IDICIAL DISTRZCT
CASE TYPE: Unlawful Detainer
Cour~ File No. = C3- 92-1 61 3
The parties stipula~e and agree as follow~:
1. The Plainti£f aoknowledges that Defendant owes
Plaintiff $4,998.00 &e reimbursement for payable 1992 real
2.
Defendant Ih~ll ~ay $1,000.00 ~ month commencing
J~nuary 1, lg93 and continuing on the 1~ day o£ each ~onth
through and ~cluding September 1, 1993 W~_~nh.~hall be allocated
a~ follows:
$431.00 per month for payable 1993 T~LE~I
6569.00 per month ~oward ~he 1992 del~.n~uency ~n the
amount of $4,998.00, which shall aoorue in, rest at the
rate of eight .Re,Cant (8%) per ~nnum on the unpaid
balanoe.
~y of ~ ~~ ~~~~ ~~~ ~11 ~y $431.00 p~
t~l 1993 ~~ e~l ~e i~1 ~~le 1993 ~e. ~
12.'29.'92 18:18 "g~$12 452 5550 C.-k.~PBELL K,SUT$O.~ -~-~, CLL.~N, CITY ~4.L,-
4. Ail terms and conditions of ~he original written lease
Between the parties, except as mo~ifie~ herein, shall ra~in in
full force and effect.
·
~. Defendant is occupying the pre~aises ap a month to month
tenancy.
6. If Defendant defaults on any payment payable during
1993, Plaintiff shall be entitled to obtain its writ of
restitution in these proceedings without any further notice to
Defendant by f~l~ng an mffidavit setting forth such default.
7. If this month to month tenancy is terminated By notice
of either party or by Plaintiffs due to Defendant's default
hereunder, any unpaid balance of the 1992 real estate tax
delinquency shall be i~mediately due and payable.
8. This proceeding shall bP dismissed by Plaintiff by
December ~1, 1993 if Defendant ~as made all ~aymen~s required
hereunder.
9. Donald Kallestad an~ Laura Kalles~ad unconditionally
guarantee the performance of this agreement and the underlying
lease.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FO~
K~J~STAD ENTEP~RISBS, INC.
Kalles~a '
.!
The above Stipulation of Settlement ~e hereby incorporated
as the Order of this Court.
Dated: , 1993.
:il
BY THE COURT:
Judge of District Court
· RECEIVED
CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A. JAN :! 0 1993
Attorneys at Law CiTY OF t;r~.,~A$:
Th,,mn., .I. (. :aml-I'cll
R, ~,-,er N.
Th,,ma~ .',1.
Gary G. Fuch,,
Elliorr B. Knetsch
Michael A. Brol,ack
Rcn'.~e D..qtciner
(612) 452-'~&~0
Fax (612) 452-5550
Kallestad Enterprises, Inc.
431 West 78th Street
Chanhassen, MN 55317
Re: Housing and Redevelopment Authority
in and for the City of Chanhassen
vs. Kallestad Enterprises, Inc.
Court File No. C3-92-1613
Our File No. 12668/290
Dear Sir/Madam:
Enclosed and served upon you by United States mail is a
Notice of Entry of Stipulation of Settlement and Order.
TMS:rlt
Enclosure
Best regards,
CAMPBELL, KNUTSON, SCOTT
& ~CHS, P.A. 1
· Scott
cc: Mr. Todd Gerhardt (w/enclosure)
Z515
Suite 317 · Eagandale Office Center · 1380 Corporate Center Cun'e · Eagan, MN 55121
STATE OF MINNESOTA
DISTRICT COURT
COUNTY OF CARVER
FIRST JUDICIAL DISTRICT
CASE TYPE: Unlawful Detainer
Court File No. C3-92-1613
Housing and Redevelopment
Authority in and for the
City of Chanhassen,
Plaintiff,
VS.
Kallestad Enterprises, Inc.
a Minnesota corporation,
Defendant.
]OTIG~B OF ~NTRY OF STIPULATION
OF SETTLEMENT AND ORD~
TO: KALLESTAD ENTERPRISES, INC., 431 West 78th Street,
Chanhassen, MN 55317.
PLEASE TAKE NOTICE that the attached NOTICE OF ENTRY OF
STIPULATION OF SETT?.RMENT AND ORDER was entered and filed in the
above-entitled action on January 14, 1993.
Dated: January 18, 1993.
CAMPB/LL, KNUTSON, SCOTT
Thomas M. Scott, #98498
i Attorneys for Plaintiff
317 Eagandale Off~ce Center
1380 Corporate Center Curve
Eagan, MN 55121
Telephone: (612) 452-5000
~o=ice o= Filing, Entry,Docketing
·
·
Thomas M.' Scott
~ ·Attorney at Law Suite 317
Eagandale Office Center
1380 C~porate Center Curve
Ed:gan, MN 55121
Kall6stad Enterprises, INc. a
~ MN Corp.
· · 4~1 W.78th St.
~' Chanhassen, MN 55317
eo
.
·
·
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NOTICE OF:
·
x ' FIT;ING
·
ENTRY'~F JUD~NT.
·
· DOCKETING OF JUDGMENT
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COURT FILE NOi' C3 92 1.613
·
·
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IN RE: ' HRA vs. Kallestad E~terpris~s
·
·
,,
Yo~ are hereby 'notif'.ied that'in the ab6ve entitle~ :matter on
.
,.
-
Fi~d~ng's and Or'er was'duly, filed.
' Stipula~ion~of ~ettlement"~ad
.x-. Order was duly filed. ·
~-14'-.93
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·
· .
Findings of FaCt~ C~n¢lusi0~s of Law an~ Or'er for Judgment was
duly filed .....
·
·
Judgment was duly entered. .
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~'udgment wa's duly aockete4 i~' %he amount cf %.. '." a% I
· ..' ' ,. ' ( t:Lm~ )
·
·
·
~opies attached.
'G~GO~ M. ESS, Court/~ministratO~.
....,
" - }ho~fe'(~12) 448-1201.' ' ' 'l
Carver Co. unt~ CouP. house,. Box 4 1
· 600 East 4th St. ,. :..
· ..
· ' ".. ~hulr~.,. l,ffi $5318..: '- -. id
·
A true an6 core,Ct copy of .th~s Notice has bee~' serve6 by ma~l I
~pon ~e parties herein a~ ~e last ~~ a6~rens of each, p~su~t to
. ~~esota Rules of Civil ~roce~e, Rule 77.04. ~
I.
~ UU~'UV~
STATE OF MINNESOTA
DISTRICT COURT
F~T ~D~CL~L DISTR~CT
TYPE: Unlawful Detainer
Cot%ri= F:[le No.:
C3-92-1613
Housing and Redevelopment
Authority in and for the
city of Chanhassen,
Vm ,
Plaintiff,
Eallestad Enterprises, Inc:,
a Minnesota corporation,
Defendant.
The partfes stip~late and agree as follow~:
1. The Plaint~ff ack~owled~el t~t Defendant owes
Plaintiff $4,998.00 al reimbursement for p&yable 1992 real es~a~e
taXGG.
·
~I~nuary 1,
· .
Defendant shall pay $1,000.00 per month commencing
1993 .and continuing on the let day of each month'
through ar~ including September 1, 1993 Which~l Be allocated.
an follows:
a. $431.00 per month for payable 1993 tsJtltl;
6569.00 per month ~w&rd ~he 1992 deliru~%~anoy in ~he
amount of $4, ggs. 00, which shall aO~TUe interest at the
rate of e~ght .~er=ent (8%) per re'mum on the unpaid
~alanoe.
~. C~ing' October-1, '1993 ~ ~n~~~ ~ ~ ~t
~y of ~ ~~ ~ea~er, ~~~ '~il ~y.S431.00 per
.
.
.
.
t~l 1993 pa~en~s e~l ~e a~l ~~le 1993 ~~ ~
~1 ~J~~~s ~ereaft~ ~ refl~ ~~es ~ ~e ~
eBta~e T~X amour,~.
1.~/29.~92 1.~: 18 ~$1-~ 452 5550 CAHP~£LL ]L'%'L~$0~ ~-~ C~.t~T. CITY H.CLL ~ 00:3/00~
4. All terms and conditions of the original written lease I
·
tenancy.
Between the parties, except as modified herein, shall remain in
full force and effect. "~:'
·
Defendant is occupying the premises as a month to month
· .
6. If Defendant defaults on any payment payable during
1993, Plaintiff shall Be entitled to obtaill its writ of
·
restitution in the.se proc~edings without any further notice to
Defendant By filing an affidavit setting forth such default.
7. If this month to month tenancy is te=mtnated By notice
of either party or by Plaintiffs due to Defendant's default
hereunder, any unpaid balance cf ~he 1992 real estate ~ax
delinquency shall Be ~ediately due and payable.
-
8. This proceeding shall be dismissed b~ Plaintiff by
December 31, 1993 if Defendant has,ads all payments required
hereunder. .."
9. Donald Kallestad'and Laura Kallestadunconditionally
guarantee the performance of this agreement and ~he underlying
lease.
HOUSING AN~ REDEVELOPMENT
AUTHORITY IN AND FOR TEE
CITY~ ~SEN
KALLESTAD ~I~tTBES, INC.
.!
Doni Kalles~/d'
I
The above Stipulation of Settlement is hereby incorporated
as the Order of this Court.
·
Dated: ~ ~ 1993.
BY THE COURT:
August 18, 1993
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
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Mr. Don Kallestad
P.O. Box 177
Chanhassen, MN 55317
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Dear Mt'. Kallestad:
On 5une 23, 1993, the city mailed you an invoice for the total costs associated with the
maintenance of the downtown parking lots. Your portion of the cost is $21.01. Please pay this
amount by September 1, 1993. If this amount is not paid by the due date, a 15% overdue charge
will be added.
Should you have any questions, please feel free to contact me.
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Sirjcerel~,,~,
Todd Gerhardt
Assistant City Manager
TO:v
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CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
FROM:
Housing and Redevelopment Authority
Todd Gerhardt, Assistant Executive Director
DATE:
March 24, 1994
SUBJ:
Update on Vision 2002
Attached you will find the materials the Ad Hoc...:~'Cornmittee has been working on the past two
months. Staff is also scheduled to meet with thi~' c0mmi~ on Tuesday, March 29, 1994. Staff
will be prepared to update the HRA at Thursda~~night~s meeting on the progress of this meeting.
Staff has also asked Fred Hoisington to give. a presentation on the findings of the Vision 2002
study and outline the next step to complete<.~
._,.~ .'
..;.f..-' ... _.
This imm'is strictl~ an updazc and no ~ action is :'.':n~luircd.
1. Vision 2002 Materials
~..
~
-' .',-'.L,_ :; . .--'..,'- '-. "=:-':.CC ' ~. .... ~",'_,~.'~'"-'-'-'-'-'-'-'-'-'-~-': ".,
' "'.~ :' '.~.'-'-~'7- ;."Z~23'.:".' ';-' '.'.'." ".-. - ::::~'.;~ ....
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CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
March 16, 1994
TO: Chanhassen Vision 2002 Ad Hoc Committee
RE: March 29 Committee Agenda
Enclosed are the following materials that will help you prepare for the March 29, 1994
Ad Hoc Committee meeting which is to be held at 7:00 pm at City Hall.
.
2.
3.
4.
5.
6.
Agenda
Revised vision statement
Minutes of the January 25, 1994 Ad Hoc Committee meeting
Revised or suggested schedule
Futures paper
Revised Guiding Prindples for the Center
The purpose of the March 29 session will be to evaluate alternatives which are based on
the broad concepts presented at the last Ad Hoc Committee meeting. We will also deal
with some questions that were raised at that session.
If you have any questions in the meantime, please feel free to give me or Fred
Hoisington (835-9960) a call.
./~tncerely,
Todd Gerhardt
Assistant City Manager
Vision 2002 Ad Hoc Committee
AGENDA
March 29, 199~
le
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Review of January 25, 1994 minutes'
Review of revised vision statement
Review commitments on vacant lands
Futures paper
Reevaluation of guiding prindples
Evaluation of plan alternatives
· City Hall site development capability
· Land costs duster vs. disbursal
· Business participation/survey
Where from here/schedule revisions
· Additional committee meeang (design guidennes)
Adjourn
CHANHASSEN
VISION 2002
Revised Vision Statement
January 26, 1994
The vision for Chanhassen City Center is for it to be a focus for cultural expression,
social interaction and commercial exchange, to enrich the lives of residents while
presenting an appealing and meaningfi~ image to the very large upper midwest
population it serves. It is a Center which incorporates and maintains elements of the
past; historical and natural features, "small town" atmosphere and its entertainment
focus; but is planned to be adaptable to change, changes in technology, changes in
service deliveries, changes in retailing and entertainment. It is a Center designed for the
future, one that maintains a strong sense of community focus and orientation, one which
fosters convenience, one which maintains a pedestrian scale and emphasizes people
movement in preference to cars and is, therefore, pedestrian friendly and, inasmuch as
possible, barrier free. It is a Center which encourages human interaction, one which
mixes uses (retail, cultural, entertainment, housing and recreation) to make prudent and
efficient use of space, one which meets and is adaptable to contemporary retailing
standards. It is a Center which captures development opportunities but is sensitive to
the environment and the role that it is intended to serve within the larger community
framework.
CHANHAS\~~ON~
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CHANHASSEN
VISION 2002
Minutes of Ad Hoc Committee Meeting
January 25,
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The Ad Hoc Vision 2002 Committee met for the second time on Tuesday, January 25,
1994 to discuss alternative concepts and guiding principles for future development of
the Chan_hassen Center. Members of the Ad Hoc Committee present are included on the
attached attendance sheet.
The first order of business was the review of the December 7, 1993 minutes. There was
general agreement that the minutes correctly represent the conclusions of the December
7 meeting; however, it was suggested by Joe Betz that the vision statement be modified
to include a futures perspective. It was agreed that Fred Hoisington would modify the
vision statement accordingly.
Michael Schroeder then presented two alternative concepts termed Ancha~ (Concept 1)
and Roams (Concept 2). The primary difference between the concepts is that anchors
disburses the various public facility elements along West 78th Street while rooms
concentrates all or most public facilities at or in the vicinity of City Hall. Michael also
present~ a set of six guiding prindples for review by the Committee (attached). He
explained that the accepted concept may be a hybrid of Concepts 1 and 2 depending on
the Committee's wishes.
During the course of the discussion the following comments and suggestions were made:
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Concept 1 (Anchars) lacks identity.
Even if the post office were located next to Target, Concept 2, which tends
to focus on a larger civic center, would not substantially be compromised.
The Center should focus on City Hall but other elements could be spread
along West 78th Street.
same degree as where public elements are dustered.
No matter the concept, there will be an important need for pea
ways and the e~irrtination of ~arriers to pea~ movements.
Shuttle bus service should be considered.
e
0
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It would be natural for the post office and community center to be
disbursed and the library integrated with City Hall as a dvic center.
The process should explore uses of technology and the effects it may have
on the future delivery of public services, retailing, etc.
We have an opportunity to create a model city by including futuring as
part of the process.
Ad Hoc Committee Meeting Minutes
January 25, 1995
Page 2
10.
Ask businesses or business leaders what they would like to see in the City
Center.
11.
12.
Consider expanding the committee to include business and post office
representatives.
Give greater emphasis to the entertainment room by reinforcing it with
restaurants and hotels.
13.
14.
Consider seniors housing as an element of the Center.
For the next session, be prepared to show commitments that have already
been made to vacant lands.
15.
16.
Generate cost estimates for the two alternatives regarding the differential
between the concentration and disbursal of public facility elements.
Begin with Alternative 2 (~) and move toward Alternative 1 as space
limitations demand. This should be the process used to develop the next
level of detail.
The schedule was discussed and it was agreed that the next meeting of the Ad Hoc
Committee should be on Tuesday, March 29, 1994. Some discussion ensued regarding
the proposed community survey and it was agreed that considerable public input should
be solicited and public information disseminated prior to the survey. In addition to the
proposed April 11 focus group session and the April 18 public information meeting, it
was suggested that plans be prepared for a news article to get broad public exposure.
The meeting was adjourned as 9:05 pm. The third Ad Hoc Committee meeting will be
held on March 29, 1994 at 7:00 pm at City Hall. The revised schedule is attached.
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CHANHASSEN VISION 2002
SCHEDULE
TIMELINE TASK
AUG 15- SEP 30
SEP 16
SEP 17 - OCT 29
SEP 17- OCT 29
NOV 1
NOV 15
DEC 7
DEC 16
DEC 17- JAN 31
JAN 25
FEB 16
FEB 17
FEB 17- MAR 31
MAR 29
APR 6
APR 20
APR 21
APR 25 or 26
Data Collection/Programming/Mapping
I-IRA Approval of Process
Application of Elements of Image
Photo History/Selection of Focus Group Participants/Design of
Focus Group Process
Conduct Focus Group Session 1
(Problems, Needs and Opportunities)
Conduct Focus Group Session 2 (Vision)
COMMITTEE MEETING
Report to HRA
Evaluate Alternatives/Formulate Concept Plans/Review with
DCAUL
COIVIM1TrEE MEETING (Concepts)
Review with Planning Commission
Report to HRA
Plan Formulation
COMM1T~E MEETING (Alternatives)
Review with Planning Commission
Conduct Focus Group Session 3 (P/ans Rev/ew)
Report to HRA
COMMITTEE MEETING (Design Guidelines)
TIMELINE
TASK
MAY 4
MAY 5 - JUN 15
JUL 4-8
Public Information Meeting
Prepare/Reproduce/Di,stn'bute Newsletter/Design Community
Survey
Report to HRA
COMlVilTI'EE MEETING
Conduct Community Survey
03edsion Resources)
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Chanhassen Vision 2002 Futures Paper
The following paper is intended to identify trends which may shape the future
development of the Chanhassen City Center. Categories include government services,
entertainment and recreation, technology, transportation, mail, library and shopping.
The process utilized to reach conclusions about the future include the following: 1. Downtown serves people.
2. They come to shop, be entertained, meet, partake of services (healthcare,
municipal, library).
3. They primarily come in cars which consume inordinate amounts of space,
pushing buildings apart. The auto is the most influential factor in the shaping of
the City Center.
4. Given the above, how will technology change the way we shop, entertain, meet
and govern and obtain services?
5. How will the environment change the way we shop, entertain, meet and obtain
public services?
6. How will tastes change? Transportation change?
7. Will people either "need" or "want" to come to the Center in the future?
8. If we conclude that people will continue to want and need to come to the City
Center, how will they get there in the future?
9. If they do not wish to utilize the City Center, what will happen to the Center?
10. What is the best development plan to cover the most probable future scenarios?
11. Is there intrinsic value in people interacting with one another as part of the
shopping, entertainment, meeting and public service experience?
Demographic Trends
· Population and employment is growing (from 14,000 to 35,000) causing growth
in demand for services, shopping, recreation.
· Population is very young with a major emphasis on children (in Chanhassen).
· Incomes are declining in real dollars from generation to generation.
· Family structure continues to become more diverse with shrinkage in "traditional"
fannilies.
Demographic Conclusions
· Changes in demographics will create increased transit dependency and the need
for alternative and affordable housing to maintain economic well-being.
Land Usc / Environmental ' Planning/Design
7300 Metro Boulevard / Suite 525 ' Mimmpolis, Minnesota 55439 ' (612) 835-9960 · Fax: (612) 835-3160
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Government Servicea Trend.
· Elected offidals continue to follow "perceived" wants of constituents.
· Elected offidals continue to avoid direct tax increases.
· The public is demanding more services/wants guaranta:d outcomes/quality/fast
response or turnaround.
· The public is concerned over "taxes"/increasing cost of government.
· More and more service demands are being pushed down to local jurisdictions.
· Technology is being employed to improve effidency and decrease costs (a
panacea?).
· Growing emphasis on public partidpation/involvement/relations via cable,
newsletters, committees and public meetings.
· The media is playing a growing role in decision making.
· Increasing discussions regarding intmgovernmental cooperation and improved
communications.
· lJimited discussion regarding the privatization of public services.
Government/Servicea Concluaiona
· Growth in services will necessarily have to occur while growth in development
can support it.
· Virtually all major public facilities will have to be built while the City is
physically growing.
· As long as growth will support it, service expansion will continue. When it
requires a tax increase, growth in public services will level off or stop.
· Some efforts may be made to privatize public services as a means to control
public costs and taxes.
· Emphasis will change from growth services to quality and communications
services after growth has passed (ombudsperson, public relations director,
forester, human services director, etc.).
· The media will create a need for improved communications capabilities.
· Greater emphasis on improved public relations/communications will affect the
design and amount of public space.
· Cities will need to provide flexible and adaptable space that can serve virtually
any governmental use or purpose.
· The desire to better serve the public will cause some decentr~liTation of services.
· There will be an increasing demand for intergovernmental cooperation,
communications, integration of services, shared services and shared space as a
means to control costs. Carver County, for example, may need a service center
Entertainment and Recreation Trenda
· Growing big event/partidpatory entertainment.
· Huge taste for action/controlled risk taking entertainment/recreation.
· Growing cost in big event entertainment.
· Growth in home entertainment.
· Growth in eating out.
· Huge restaurant competition causing am'ition.
· Decreasing consumption of alcohol at~ibu~able to fi~ness and diet.
· Increasing emphasis on fimess and image.
· Increasing emphasis on home fimess.
· Growth in some pa~cipatory or team sports (volleyball, softball, basketball).
· Private sector does not provide well for team sports, youth and seniors activities
or meeting rooms.
· Growing diversity in restaurants and entertairtment (seeking niche markets).
Entertainment end Recreation Conclusions
· Cities will need to provide flexible and adaptable space for team sports, meetings
and related activities that cannot be conveniently or efficiently satisfied in the
home.
· There will be an increasing demand for more exciting forms of recreation for
youth.
· Cities will need to provide things that are not well provided by the private sector,
if they are to be had at all.
· While there is a growing demand for restaurants, their success will depend on
food, not alcohol.
· Fast food will command a greater share of the market over time but will become
more diverse.
Technology Trends
· Increasing speed of information transmission (E-mail, fax).
· Accessibility everywhere (phones, paging).
· Technology is increasing productivity, decreasing jobs.
· Telecommunicating is increasing.
· Growing capability to replace paper.
· Increasing use of technology by decision makers to communicate with the public.
· Technology begets accelerated technology (evolution).
Technology Conclusions
· Technology will continue to change the way cities do business.
· Technology and communications will both slow the rate of City personnel growth
and increase it. Technology will certainly reduce the need for or eliminate paper
storage.
· City Hall will become a commtmications center for all units of local government
and, perhaps, for state and federal governments as well.
P~ge 3
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· During periods of rapid growth, technology will only slow the rate of increase in
government, not stop or replace it.
Mall Trends
· Growing volume of mail in spite of ~ology.
· Growing competition for mail delivery.
· Tremendous demand for speed and guaranteed delivery.
· Sentiment and competition favor privatization.
· U.S. Postal Service mostly handles commerdal mail which is heavily biased
toward advertising.
Mall Conclusions
U.S. Postal Service will become the mail service of last resort, if it hasn't already,
for those who cannot afford or do not have access to electronic communications
and for low cost bulk mailing. May disappear altogether.
Library Trenda
· Technology is already available (Internet) to completely transform library services
while allowing worldwide access via microcomputers.
· Costs to keep periodicals, newspapers and card catalogs current are escalating
rapidly (25-35% per year).
· Libraries are limiting services and ma~ to reduce or stabiliTe rapidly
increasing costs.
· Demand for Ubraries continues to outdistance population grow'd~.
· Privatization of library services is evolving relatively slowly.
Library Conclusions
· Users will be able, via Intemet, to directly access electronic catalogs, obtain
electronic annotations and perhaps read electronic offerings.
· Access will be available to anyone having a home computer.
· More and more material will be published in an electronic format.
· Material that is published in an electronic format will not likely be published in
hard copy.
· Libraries will be forced to provide electronic media services to custo~ in order
to survive.
· Library systems that do not change or adapt will disappear.
· Systems will continue to become more self-service oriented.
· Private competition for library services will grow as ~hnology and the demand
for speed increases.
Pa~4
· Electronic access may allow more people to use library services.
· Building size will tend to decrease as hard copy is replaced by electronic media
and competition ensues.
· Local libraries are likely to be replaced by large regional libraries.
· There will be a movement away from small local libraries due to the high initial
costs to adapt to new technology.
· Public library user charges will necessarily increase on all but access to basic
materials.
· There will continue to be a need for a public library service to satisfy those needs
not able to be met by the private sector.
Transportation Trends
· There are limitations on transportation capacity and public opposition to major
expansions (highways and airports).
· Major highway improvements are extremely slow to construct due to having to
build under traffic (I-494 will take perhaps 12 years to construct).
· Fuel costs have trended downward in real dollars making the auto the
transportation of choice.
· Overall, public transit ridership has been declining but continues to grow in the
southwest corridor.
· Number of auto passenger miles is increasing while the number of passengers per
auto is decreasing.
· LRT has strong supporters and may be built within the 35W corridor.
· Worldwide, petroleum reserves are being depleted rapidly.
· Transportation finance is woefully deficient and replacement is not keeping pace
with need.
· Other methods of financing highway improvements are being considered
including toll roads.
· Minimal rail freight service is provided by the TCRR over the old Soo Line tracks.
· Traffic congestion during peak travel hours represents a growing problem and
creates significant imbalances. Current levels of congestion warrant only limited
travel demand management CrDM) measures to spread or reduce demand.
Transportation Conclusions
· Major highway improvements, 1-494 and 35W, will be significantly scaled back
to accommodate only HOV lanes (and LIlT in the 35 W corridor).
· Fuel will substantially increase in cost forcing alternative fuel vehicles.
· Cars will become smaller and more costly forcing some people to look for
alternative modes of transportation.
· Congestion will increase due to the inability to provide major highway
improvements. People will begin looking for alternative modes.
· When congestion and parking and fuel costs increase sufficiently, people will seek
transit alternatives. Only then, will policy makers employ congestion pricing on
CHANHAS\93~7\Fu'ruREs.~
Pages
maior highways as a means to finance transportation improvements, regulate or
balance traffic flows and encourage the use of transit alternatives.
· Until economic incentives and disincentives are in place, transit will be of little
help in reducing congestion.
· The state legislature will ultimately intervene to create a level playing field to stop
employer and resident exodus from the core dties and curtail urban sprawl.
· A mix of transit technologies will necessarily be employed to handle congestion.
May include an LRT element.
· Rail corridors will be given priority for exclusive transit use and any future transit
hubs will be located along transit corridors.
· There will be a growing need to get employees from the central cities to the
suburbs for work.
· Telecommuting will increase as congestion increases and businesses downsize.
· Improved transit will support higher density housing within the City Center.
· There will be a need for a transit stop within the City Center and perhaps a
circulator transit service to feed the main transit line.
· Nighttime use of the automobile will continue to grow due to concerns for
nighttime securi~ and minimal congestioru
· The automobile will become less important for commuter trips but local trips will
continue to be predominantly by car.
· The TCRR represents a potential exclusive transit line.
· Pedestrian travel will not, in any way significantly, reduce shopping travel
demand.
Shopping Trends
· Increasing product diversity (convenience foods, etc.).
· Growing/excessive competition.
· Dieting and fitness increasing diversity.
· Larger stores based on volume/low margins.
· Smaller stores based on quality/service.
· Increasingly discerning shoppers based on quality or price.
· Decreasing customer loyalty to merchants.
· Public is less forgiving of product failure/litigation/liability.
· Better/more durable products lasting longer.
· Mall magnets/strip mall struggles; there will likely be no more regional malls.
· People prefer interior spaces in winter.
· People traveling longer distances for apparel or comparison shopping goods.
· Accelerating speed of transactions through technology.
· Increasing percentage of shopping being done via shoppers networks (interactive)
and mail order (threat to TARGET?).
· Shopping as entertainment.
· Growing emphasis on home deliveries.
Page6
Shopping Conclusions
· The City Center will primarily function as a convenience center, serving the goods
and service needs of residents and employers (restaurants, hotels, motels, banks,
grocery stores, health care fadlities, recreation, etc.).
· The City Center will also serve as a regional center for entertainment (dinner
theater) and a subregional center for retail (Target).
· The demand for commercial land will deelirte somewhat relative to population
and employment growth. The availability of land within the City Center will not
keep pace with demand forcing commercial development across Highway 5 and
west of CR 17.
· Some parking lot space may be able to be freed up for commercial use
attributable to the shrinkage in auto size.
· Parking demand will continue to shrink attributable to deliveries, aging of the
population and the use of alternative transit modes.
· Development will tend to intensify and elements will be interconnected to
facilitate customer comfort and convenience.
Major Conclusions
· Within the foreseeable future, people will not sit home and do everything via
interactive media. They will continue to need or want to come to the Center.
There will continue to be value in human interaction.
· Trends support flexible/clustered/interconnected public spaces and buildings to
facilitate customer convenience and the interchangability of use.
· Trends support more intense mixed use developments that provide opportunities
for shared parking and increased shopping convenience.
· Public services demands will continue to grow at the local or municipal level
parallel with population growth and development. Substantial privatization of
public services via contracts, will not occur until well after growth subsides.
· Technology will not appreciably change the growing demand for munidpal space
until privatization is embraced as a legitimate alternative.
· Library services will change dramatically within as little as five to ten years due
to the high cost of the current method of service delivery, the need to adapt to
new technology and private competition. While a library well may be part of the
Chanhassen community, it will likely be considerably smaller than accepted
standards would suggest.
· Technology will have a significant effect on mail service. A retail type post office
might best be accommodated in the City Center with warehousing located
elsewhere. Ultimately the public mail service may nearly disappear.
· Since parking demand will diminish over time, more intense use will be able to
be made of commerdal properties.
· Public transit will become increasingly important for commuting trips. Local or
internal trips and those made at night will continue to rely on the automobile.
Page7
· There will be an increase in demand for alternative transit modes as the
population ages and incomes erode.
· The Twin City Railroad corridor may become a major transit spine around which
all future transit service revolves (transit hub, circulators, etc.).
It is our conclusion that the Chanhassen City Center will continue to exist in a form or
paUem that will become increasingly intense due to a change in emphasis from the
automobile to other transportation modes. Technology will also tend to encourage a
denser clustering of uses. We believe there is intrinsic value in human interaction and
that people will, in spite of technology, continue to participate directly in the shopping,
entertainment, meeting and public service experience. While the Center will become
more intense, it will also become more friendly due to the change in emphasis from the
automobile to people.
~4-94
Pice8
Vlslorl 2002
Focus on the Center
Chanhassen, Minnesota
Ho'Mngton Koegler Group Inc.
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Guldlna Principles for the Center
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Issues identified by the community at Meeting #1 are the basis for the six categories defined below.
The concepts outlined are abstracted from the Vision statement, with principles and guidelines
intended to support the key ideas of the concept.
In general, the Center should focus on:
· integration with the community
· public spaces, such as parks and plazas, as a major elements
· connections to the surrounding environment
· pedestrians, not cars
In order to accomplish these broad ideas, the following concepts and principles are proposed to
guide further development of the Center.
1 Mark the Center
The Center's entry points and edges should be defined, making the Center distinct and identifiable
within the community. The Center itself should be a reflection of the larger Chanhassen
community.
Provide a "signal" from Highway 5 that the travelers am at the C.~nte2.
At entries, provide notice to users that they am entering or leaving the Center.
Use elements of Chanhassen's cham~r to establish an appropriate identity for the Center at
entries.
Where appropriate, use the Center's edges to provide separation between conflicting uses.
Integrate aspects of the surrounding landscape or historic community features into the
Center, making connections with the land and the community's past.
Land Use / Environmental · Planning / Design
7300 Metro Boulevard / Suite 525 ~ Minneapolis, Minnesota 55439 = (612) 835-9960 · Fax: (612) 835-3160
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2 Mix uses in new development
Uses within the Center should be mixed, encouraging people to come to the Center at different
times and for a greater variety of purposes.
Create activities for the Center that encourage use in the evenings and on weekends as well
as during the day.
Use shared parking with appropriate uses to reduce the number of parking spaces within
the new developments.
Develop uses that result in increased use and density in the Center.
Employ transit as a method of distributing people throughout the Center.
3 Define the pedestrian network
Certain areas within the Center should be dedicated solely to pedestrian use. They should be
clearly defined, safe, and provide convenient patterns of pedestrian circulatio~ Larger spaces
should be created as a part of a pedestrian network, allowing for planned community gatherings,
informal activities, or simply relief from the more active uses of the Center.
Create pedestrian ways to ~s all of the Center, with minimum of vehicle conflicts and
maximum concern for pedestrian comfort and safety.
Develop spaces within the pedestris~ network that are oriented only to the pedestrian.
Relate public spaces to significant public buildings.
Establish at least one public space large enough to accommodate commnnity events.
Provide direct connections between the sidewalk and the front door of buildings in the
Center.
4 Park once, shop twice
Users of the Center should be able to walk comfortably between destinations, enlivening the
public space and reducing ataomobile ~.
Develop parking that is centrally located among uses.
Establish logical and convenient .pedestrian connections from parking areas to destinati~.
Create paths that are interesting -- using elements along the paths that recall the larger
Develop shared parking where possible, reducing th~ amount of land in th~ Center that is
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Oukl~g P~:iples Page 2
5 Create a "town square"
A space for celebrating community life should be the highlight of the Center, creating a center of
activity and a focus for the Center.
Develop a community space that is the centerpiece of the Center.
Create a space large enough to accommodate community events and celebrations, but small
enough to provide for escape, relaxation and small gatherings.
Relate this civic space to a significant public building and to the pedestrian network.
Locate this space at a place that is central to all activities of the Center, ia a place that is the
visual focus of the area.
6 Connect to the neighborhoods
The neighborhoods that surround the Center should be linked to it, creating a strong relationship
between the Center and the community it serves.
Create meaningful visual connections and usable physical connections between the Center
and each of the neighborhoods surrounding it.
Where appropriate, define ways of making neighborhoods a part of the Center.
Where appropriate and necessary, use the edges of the Center to protect the neighborhoods.
Use the elements of connection to provide for pedestrian routes.
Develop new housing as a part of the Center's neighborhoods.
7 Draw from the environment
The Center should draw from its surroundings to build or enhance its character, and recognize that
a stronger identity can be created by maintaining strong connections to the land.
Use features of the natural environment and the surrounding landscape to reinforce the
Center's connection to the land.
Maintain features of the natural environment (landform, wetlands and surface water
features, vegetation and viewsheds) that contribute to the character of Chanhassen and the
Center.
8 Anticipate the future
As the Center is planned, we must consider the ways in which our lives may be transformed by
technology and how our society will adapt to the opporltmities of the future.
Recognize that the Center will become more intense due to a stronger emphasis on
transportation modes other than automobiles, and that space may become available due to a
reduced demand for automobile parking.
Vision 2002: Focus on the Center Guiding Principles Page 3
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Encourage ~ clustering of a~ivities and uses as a response to changes in technology.
Provide space for human interaction, especially as people continue to participate in the
experiences of shopping, entertainment, meeting and public service (in spite of changes in
t~lmology).
9 Build "community"
Chanhassen ~ Center is more than the combination of the natural and built environment; it is the
focus of the community's culture As a tnzrt of developing the Center, there will be opportunities to
build a commitment to Chanhassen "the place" and reinforce the traditions of "conmumit3"
Recogni~ that community celebrations, parades and events are opportunities to establish
connections between people and place, and that appropriate spaces should be ~ to
serve those purposes.
Identify and promote aspects of Chanhassen's heritage that can create a sense of
community, and express them in the development of the Centea
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Oukfln~ Principles Page 4
CHANHASSEN VISION 2002
AD HOC COMM~TEE
2/8/94
Sharmin A1-Jaff
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
James Andrews
7014 Sandy Hook Road
Chanhassen, MN 55317
Don Ashworth
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Lynn Ayers
Business Health Services
500 South Maple Street
Waconia, MN 55387
Brian Batzli
161 Fox Hollow Drive
Chanhassen, MN 55317
Fred Berg
6910 Chaparral Lane
Chanhassen, MN 55317
Mr. Joe Betz
8107 Dakota Lane
Chanhassen, MN 55317
Jim Bohn
Heritage Park Apartments
425 Chan View, Apt. 310
Chanhassen, MN 55317
Gary Boyle
7214 Frontier Trail
Chanhassen, MN 55317
Don Chmiel
7100 Tecumseh Lane
Chanhassen, MN 55317
Vemell Clayton
Lotus Realty Service
P.O. Box 235
Chanhassen, MN 55317
Ladd Conrad
6625 Horseshoe Curve
Chanhassen, MN 55317
Ms. Colleen Dockendorf
2061 Oakwood Ridge
Chanhassen, MN 55317
Mr. James Domholt
8251 West Lake Court
Chanhas~, MN 55317
Mr. George Dorsey
1551 Lyman Blvd.
Chanhassen, MN 55317
Mr. Tim Erhart
775 West 96th Street
Chan_has~, MN 55317
Jeff Farmakes
7100 Utica Lane
Chanhassen, MN 55317
Todd Gerhardt
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Mr. Ben Gowen
6440 Ha~ltirte Blvd.
Excelsior, MN 55331
Diane Harberts
7190 Frontier Trail
Chanhassen, MN 55317
Todd Hoffman
Cit7 of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
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Mr. A1 Klingelhutz
8600 Great Plains Blvd.
Chanhassen, MN 55317
Paul Krauss
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
Janet Lash
7001 Tecumseh Lane
Chanhassen, MN 55317
Matthew Ledvina
2711 Piper Ridge Lane
Excelsior, MN 55331
Nancy Mancino
6620 Galpin Blvd.
Excelsior, MN 55331
J~es Manders
6791 Chaparral Lane
Chanhass~, MN 55317
Ms. Susan Marker
7461 Hazeltine Blvd.
P.O. Box 311
Excelsior, MN 55331
Mr. Mike Mason
820 Woodhill Road
Chanhassen, MN 55317
Mr. Kevin P. McShane
180 South Shore Court
Chanhassen, MN 55317
Jane Meger
405 Highland Drive
Chanhassen, MN 55317
Gordan & Sandy Nagel
514 Del Rio Drive
Chanhassen, MN 55317
Mr. Fred Prinz
408 Santa Fe Circle
Ch~nh~, MN 55317
7340 Long~ew Circle
Cl'mnhassen, MN 55317
Ran Roeser
~ Chan View
Chanhas~m, MN 55317
Larry ~t_hroers
1020 Carver Beach Road
Joe Scott
7091 Pimlico l_ane
C2mnhassen, MN 55317
Mr. Mark Senn
7160 Willow View Cove
Chanhas~n, MN 55317
Pastor Cindy Shephard
Colonial Church at Heritage Sqtmre
381 West 78th Street
Chan_hass~n, MN 55317
Ms. Kitty Sitter
9249 Lake Riley Blvd.
Chanhassen, M]'q 55317
Ms. Lue Ann W~llen~
507 Chan View
Chanl~ssen, MN 55317
The Instant Web Companies
1000 Park Road
Cl~nhassen, 1V[N 55317
3481 Shore Drive
Excelsior, MN 55331
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CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
Housing and Redevelopment Authority
Todd Gerhardt, Assistant Executive 'Direct~~
DATE:
March 24, 1994
SUBS:
Update on Market Square
Attached you will find the planning report that.is ...being presented to the City Council at their
March 28, 1994 mee~g regarding the Wendy'si'site.";'..$. taff will be prepared to discuss the results
of this meeting on Thursday night. No further action:is required on this item.
·
... . .
..
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:.
ATTACHMENT
Planning Site Plan Report
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CITY OF
PC DATE:
6/94
CC DATE: 3/28/94
CASE #: 89-2 PUD
By: Al-$aff.'v
STAFF
REPORT
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PROPOSAL:
LOCATION:
1)
Site Plan Review for a 10,084 Square Foot Retail/Office Building, and a
2,533 Square Foot Wendys Restaurant
2)
Replat of Outlot A, Market Square into Lot 1, Block 1, Market Square
Second Addition, 41,193 Square Foot Lot.
Southwest comer of the intersection of Market Boulevard a~l West 78th Street
Lotus Realty Services, Inc.
P. O. Box 235
Chanhassen, MN 55317
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PRESENT ZONING:
ACREAGE:
DENSITY:
ADJACENT ZONING AND
LAND USE:
WATER AND SEWER:
PHYSICAL CHARACTER.:
2000 LAND USE PLAN:
PUD, Planned Unit Development
79,946 Sq. Ft. (Wendy's Site 41,193 s.f. - Office,/Retail Site 38,753 s.f.)
N- OI
S - PUD, Market Square
E - CBD, Filly's and Country Suites Hotel
W - PUD, Market Square
Available to the site.
A level parcel.
Commercial
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Market Square H
February 16, 1994
Page 2
On February 15, 1994, the Planning Commission r~iewed the following app~on:
1)
Site Plan Review for a 9,960 Square Foot Retail/Office Building, and a 2,.533
Square Foot Wendy's Restaurant
2)
Replat of Ouflot A, Market Square into Lot 1, Block 1, M~ket Squal~ Second
Addition, 41,193 Square Foot Lot
As an oversight by staff, the application was published in the newspaper but a notice did not get
sent to property owners within 500 feet. Consequently, the public hearing was not closed, and
the decision was tablecL
Shortly following the February 16, 1994, Planning Commission meeting, staff had some in-house
discussion with a few members of the Planning Commission and City Council h was suggesl~
that a unified building which would house the offi~ as well as the Wendy's facilities
should be studied. Staff has not had time to develop designs, however, we fred merit in this
suggestion. A u~ified comprehen~ve and compafib~ architrctuml style could be developed and
we recommended the applicant investigate this possibility.
On March 2, 1994, the Planning Commission completed review of the applicant's proposal. They
recommended approval of the subdivision request and denied the site plan review application
based mainly on the traffic ~irculation and design quality of the buildings as ~ in the
Planning Commission's minutes da~.zl Mm~ 2, 1994. The applicant revised the plans twice
since they were first submitt~ to the Planning Commission and the changes ~re extensive.
Rather than amending sections of the report, staff has written a new one.
lmOPOSAL/S~Y
On October 8, 1990, the City Council approved the final PUD plan for the Market Square
Shopping Center subject to conditions described in the attach~ report. The sit~ included 4 lots
and one outlot. Market Square Shopping Center ocorpies Lot 1. Lots 2, 3, 4, and Ouflot A are
vacant. Thc current request is for thc construction of a 10,084 square foot officeJrcmil building
(FAina Realty) on Lot 4, and a 2,533 square foot restnurant bnilding (Wendy's) on Outlot A.
The site plan is well developed, however, in some respec~ it does not meet nH ~t stnndards.
The PUD it is regulated by is almost 5 years old and while it was con,ld_e~ed progressive at that
time, newer standards have since been put into place. This request is subject to regulations under
the existing PUD plan. Staff is reconungnding some changes that will allow the overall plans
to work more cl~.dcnfly. T'nc revised architecture of the otr:~,/~-tnil building ~ to xmelcct
thc existing usc of light grey rock face block foundation and columns to match thc shopping
center, brick facade to match the City Hall btfilding material, gabled roof to reflect the Rrnne in
downtown, and arch shaped windows along the north and south facade to rcflec--t some of thc
Market Square II
February 16, 1994
Page 3
Byerly's design. This type of architecture and materials used is a better quality than the rest of
the shopping center and is consistent with downtown. Staff is recommending the applicant uses
cedar shingles rather than the dark grey asphalt shingles. The recommended shingles will
complement the Country Suites Hotel roof material. The Wendy's Restaurant building is
proposed to have brick veneer exterior. The color of the brick should be of a tone that blends
with Market Square. A pitched roof and a parapet wall screen all the roof top equipment as well
as adds an attractive architectural element.
Site access is provided via existing shopping center curb cuts on Market Boulevard and 78th
Street. Internal access is a somewhat more complicated situation. There are two internal access
points onto Market Square's north drive. The Planning Commission denied the site plan for
Wendys and the retail building on the basis of poor traffic circulation among other reasons. Staff
was directed to review with the applicants different alternatives to improve the circulation. This
matter is discussed in detail under Traffic Circulation further in the report.
The site landscaping is generally of high quality due to the attention that was paid to this issue
by staff and the applicant. Additional landscaping is being requested south of the site. There
are some trees located withiu the public right-of-way. These trees must be moved and contained
within the site property lines.
In an accompanying subdivision request, the outlet is being replatted into a lot. The only change
taking place with the replat is the change of status from an outlet to a lot. The replat request is
a straight forward action.
Based upon the foregoing, staff is reconunending that the City Council approve the site plan and
subdivision request for this proposal with appropriate conditions.
SITE PLAN REVIEW
C~neral Site Ph~n/Architecture
The applicant is proposing two buildings. The first building is a 10,084 square foot officedretail
building (Edina Realty), will be located on Lot 4 and situated at the southwest comer of West
78th Street and Market Boulevard. The second building is a 2,533 square foot restaurant building
(Wendy's) and will be located on Outlet A, south of the future Edina Realty. Access is gained
off of a curb cut on West 78th Street (right in/out only), and via Market Boulevard. Parking is
located to the west, south, and between the two proposed buildings. Vehicle stacking is located
south and east of the Wendy's building so that direct distant views from West 78th Street to the
north of the site will be minimized. Direct views of the stacking lanes will be screened by the
two buildings and landscaping from the north of the site. The revised architecture of the
officedretail building attempts to reflect the existing use of light grey rock face block foundation
and columns to match the shopping center, brick facade to match the City Hall building material,
Market Square ri
February 16, 1994
Page 4
gabled roof to reflect the theme in downtown, and arch shaped windows along the north, east,
west, and south facades to reflect some of the Byerly's design. This type of architecttuc and
materials used is a better quality than the rest of the shopping center and is consistent with
downtown. Staff is rec. o~ding the applicant uses cedar shingles rathel' than thc dlll'k grey
asphalt shingles. The recommended shingles will comp~t the Country Suites Hotel roof
material. The Wendy's Restaurant building is proposed to have brick veneer extra, or. The color
of the brick should be of a tone that blends with Market Square. A pitc~ roof and a parapet
wall screen all the roof top equipment as well as adds an attractive architectural element.
Wendys typically uses a bright red band to sun'ound their bui!dings~ In this insmnc~ this will
not be the case. The uim will be of a bronze color.
Thc applicant is showing the trash enclosure scree~ by masonry walls using the same matarials
as the buildings. Both, Wendy's and Edina Realty will utilize a single consolidated trash
location. Three electric boxes (transl--) operal~ and maintained by NSP, as well as a
u'affic controller unit, are located at the southeast corner of the site. These units will be screened
by landscaping to the north, west and south. A 10 foot ~g must be maintained around the
units for maintenance purposes. The applicant is showing those units to be relocat~cl by the City.
Staff agrees that these units are unat~'~ve, however, the city recently went through relocating
these units which cost approximately $7,000. The applicant may relocate the units at their own
expense after approval has been given by NSP. The plans also reflect a City Traffic Conuoner
to be relocated by the City. This is the master tr~n,former for all the downtown signals. The
location was chosen because it provides perf~ sightlines of the sigilals while woEking on the
signals. Also, moving this unit will require major expense due to all the electric ~ts that
converge at that lraffic controller. Based upon the forgoing, the applicant may not move this
unit~
Staff is generally satisfied with the two building's archi~ and note that the applicant has
worked extensively to modify this project. The archi~ style of the ~ Retail building
has been revised extensively and the Wendys building was rotauxl to provide a more attractive
elevation to viewers north bound on Market Boulevard and the service door was moved to the
north of the building to give it bettg~ screening.
The site on which Edina Realty's building is situated is a highly visible one and which is highly
likely to become one of the most i~t intersections in the Chanhassen CBD. Staff
appreciates the fact that the building is situated to maintain the West 78th stre~-'t~ by it~ close
proximity and orientation. There is no pazking between the street and the building, only
landscaping. Setting an arc~ standard for this building is ~t in part due to its
location. The PUD approval requires arc~ consistency with the main shopping center
building. However, at the same lime, &i, site is ~y the transition point from the
believes that the architect's intent to combine the style of the shopping center building, along
with other downtown buildings such as the Country Hospitality Suites, is a sound one.
Market Square II
February 16, 1994
Page 5
Parkinv./Interior Circulation
The city's parking ordinance requires one parking space per 200 square feet of gross floor area
for retail buildings. Edina Realty's building is proposed to contain 3,000 square feet of
officedre~ space. The number of parking spaces required is 15. The office portion of the
building requires 4.5 spaces per 1,000 square feet gross floor area. The building is proposed to
contain 7,000 square feet of office space. The number of parking spaces req~ is 31.5 spaces,
resulting in a total of 47 spaces. The applicant is providing 47 parking spaces.
The ordinance requires one parking space per 60 square feet of gross floor area for fast food
restaurants. The Wendy's building has a gross area of 2,533 square feet. The number of parking
spaces required is 42 spaces. The applicant is providing 44 spaces which exceeds the ordinance
requirements.
On March 2, 1994, the Chanhassen Planning Commission denied the site plan for Wendy's and
retail building on the proposed plat of Market Square 2nd Addition. The denial was largely due
to the traffic circulation but included other reasons. The Commission directed staff to review
new alternatives for traffic circulation and provide advantages and disadvantages to each option.
Prior to preparing the summa~ of the options, some design elements that are used in the design
of parking lots based on the Institute of Traffic Engineers must be explained.
The design of a parking facility is very strongly influenced by its intended operation. The basic
design elements and their associated operational features may be identified in successive steps
as follows:
!
.
e
.
5,
.
.
Vehicular access from the street system (entry driveway).
Search for a parking stall (circulation and/or access aisles).
Maneuvering space to enter the stall.
Sufficient stall size to accommodate the vehicle's length and width plus space to open car
doors wide enough to enter and leave the vehicle.
Pedestrian access to and from the facility's boundary (usually via the aisles) and vertically
by stairs, escalators, or elevators in multi-level facilities.
Maneuver space to exit from thc parking small (access aisles).
Routing to leave the facility (ac, ess and circulation aisles).
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Market Square li
February 16, 1994
Page 6
8. Vehicular egress in thc street system (exit driveway).
Based on thc design elements ~ above, thc Assistant City Engineer put together a list of the
advantages and disadvantages of three options that were provided by the app~t. F. ach of the
options is followed by a tist of thc advantages and disadvantages for consideration. TUe
corresponding parking circulation drawings are am~hecl to this report (Attachmmt #1). Option
#3 is thc parking lot design that appeared before the Planning Commission- Thi, option was one
of the main reasons why the Planning Commission recornmcmd~ denial of the application.
OPTION NO. 1
Advantage
II
Maintains pedestrian access through both sites.
Provides additional green space.
Eliminates the need for a cross-access easement
Disadvantages
le
e
Limits ingress and egress to both sites to only one is:ce, ss driveway.
Creates more demand on the southerly access (Wendy's) versus dividing the traflSc
circulation to two exit points.
Limits parking to each site.
No vehicle stacking distance on northerly access for vehicles leaving retail pafldng.
OPT~O~ ~o. 2
Advantages
Promotes smoother traffic circulation through both siu~s - user friendly.
Opens up site distance at intersection of cross aisles with northerly driveway access (retail
area).
Provides some stacking distance for vehicles leaving retail pafldng lot.
lo
1
Northerly access aisle does not align across with existing drive aisle in Market Square
Shopping Center.
Does not promote pedestrian ~on between sites.
Market Square II
February 16, 1994
Page 7
OPTION NO. 3 (ORIGINAL DE$IQN DENIED BY PLANNINQ QOMMi$$ION)
Advantages
,
,
Provides pedestrian and traffic circulation between both sites.
Both driveway accesses align across with existing drive aisles in Market Square Shopping
Center.
Provides two access points.
Disadvantages
Intersection of retail parking lot and Wendy's parking lot not perpendicular, potentially
leading to driver confusion and turning conflicts.
No vehicle stacking distance on northerly driveway access for vehicles leaving retail
parking lot.
Upon review of these options, Engineering staff feels the most comfortable with Option No. 2
even though the northerly access aisle (driveway) does not align across with the existing drive
aisle in Market Square Center.
Access
Since Market Square has been completed, traffic circulation throughout the center has had its
problems. One such area is mining into the shopping center from Market Boulevard at the most
northerly access point. The driveway access is designed with three lanes of traffic; two lanes
outbound onto Market Boulevard and one lane inbound. A center median also exists dividing
the inbound from outbound lanes of traffic. The problem exists on the inbound lane. The lane
is narrow and the turning radius is tight. Numerous vehicles have "j~" the north curb line.
Staff believes by increasing the northerly radius to 30 feet it would improve turning movements
into the site. The City's Fire Marshal has also indicated that fLre trucks heading south on Market
Boulevard to access the site are unable to enter the site without swinging far out over the
northbound lane of Market Boulevard. The applicant has modified the plans to reflect the
requested turning radius.
The inbound access driveway from Market Boulevard currently is constructed to 14 feet wide
concrete curb on the north side. The inbound lane of md-ftc was to be constructed with bit curb
(temporary) 14 feet wide; however, since the existing curb is concrete and not bituminous, staff
recommends that only the easterly 100 feet of the driveway access from Market Boulevard be
increased to 16 feet wide face-w-face with concrete curb and gutter (B612). This 100 feet should
offer a smooth transition distance and adequate turning movement for vehicles to ingress and
egress into the shopping center. Staff discovered that the curb line (aisle) west of this site is
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Markct Square 11
February 16, 1994
Page 8
already slightly offset by a couple of feet. Thus, moving the curb further north into the site will
only aggravate the offset
An existing fire hydrant located at thc southwest comer of the site mi~t be ~ by the
widening of driveway radius. City policy requires a 5 foot setback for hydrants from the curb
as well as a 10 foot clear zone around the hydranL The app~t shall adhere to these
Although the landscaping plan appears to be generally rcasonnble, staff is recommending
revisions to thc plan. Thc first is that five nddifional over-story trees should be incorporated in
the green space located south of the site.
The city's West 78th Street project also includes groupings of free plantings along West 78th
Street boulevard. The city's plans propose to plant five linden greensp~ uees adjacent to the
sidewalk in front of the retail building. The applicant should incorporate these trees in the
landscaping plan and remove any of the proposed site landscaping from the city's right-of-way
or easement areas. It appears it may be ~ for the applicant to convey to the city a
permanent landscaping easement over the trail easement in order for the city to plant the uees
previously described in this section.
Lighting locations have not been shown on the plans. Only shielded fixmr~ are allowed and the
applicant shall demonstrate that there is no more than .5' candles of light at the property line.
Plans should be provided to mff for approval. Fixtures should mawh those being used elsewhere
in the shopping center.
Si~na~e
The existing Market Square sign plan peaxnits one monument sign only for the remil/~
building site with the following conditions:
a.
be
de
The height of the monet sign shah not ~ 12'10" (the height of the existing
Market Square sign).
The sign shall contain no more than 41 square feet of sign nrea per face.
Square monmTtent signs.
The owner of each monmnent sign shall be responsible for its consuuction, repair,
maintenance and/or replacemenC
Market Square II
February 16, 1994
Page 9
The applicant has submitted a monument sign plan. One monument identification sign is
proposed at the northeasterly comer of the site. This sign is identical to the two existing
monument signs for Market Square. The location of the proposed monument sign is in conflict
with the existing NSP transformers and traffic control box, as well as being located with in the
sight distance triangle. This sign must be moved and conform to the sight distance triangle
requirements.
Only one wall mounted sign is shown on the northern elevation of Wendy's building. Wall
mounted signs must meet the following criteria as identified in the plan:
ae
The letters and logos shall be restricted to 30 inches in height and must be lighted.
All individual letters and logos comprising each sign shall have a minimum depth of five
inches and shall be constructed with a translucent facing over neon tube illumination.
The signage shall be located on a maximum of two elevations of the buildings to be
construct.
Grading/Drainage
The entire site is proposed to be graded to develop the building footprint and parking lots. Only
minor earthwork is anticipated since the site is essentially level. Catch basins and storm sewers
are proposed to convey surface runoff from the rooftops, lawn areas and parking lots. The runoff
will be conveyed into the city's downtown storm water pond located south of the railroad tracks
west of Market Boulevard (fountain pond). No additional ponding areas are required as a result
of this development. The proposed storm sewer system will be a private system and maintained
by the applicant. The installation of the storm sewer will require permits from the city's
Building Deparmaent.
The proposed grading also appears to encroach onto the city boulevard which impacts the
existing sidewalks. Any damage to the sidewalks as a result of construction associated with the
site improvements will require restoration by the applicant.
The plans also propose for the city to extend a 6 foot wide sidewalk along Market Boulevard
to the comer of West 78th Street. This was the responsibility of the Market Square developer.
They were to coordinate with the city's West 78th Street contractor for the installation. The
plans should be revised to reflect this.
Utiliti~
Municipal sewer and water service is available to the site. These improvements were installed
as a part of the original Market Square development.
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Market Square
February 16, 1994
Page 10
The utility plans submitted by the applicant must be signed by a Professional En~. The
Building Deparmm~t will require permits and inspections of the storm sewer sysmn. Also, staff
had previously requested a fire hydrant to be located between the Wendys and OtCtce Retail
building. The plans must be revised to reflect the req~ fire hydrant in the recommended
location.
Erosion Con~rol
Erosion comrol provisions were not applied to the site plan. ]~os/on contwl measures should
be in accordance to the City's Best Management Practice Handbook (BMPH). Type I silt fence
should be employed along the southerly pefin~ter of the site at the construction limits.
Temporary construction entrances should be required at each entrance point to rnlnimiTe, tracking
off site. Construction access points shall be limited to the existing parking lot and not from West
78th Street and Market Boulevard.
In conjunction with the storm sewer instalhti~n and prior to paving the pazking lots, the stann
drainage inlets (catch basins) shall be prol~'ted with hay bales and/or silt fence to prevmt
sediments from washing into thc drainage system.
P~rk ~d Trail D~ation
FUll park and md] dedication fees shall be paid as part of this development at the rate in force
at the time of building permit application.
As a PUD, most of the usual ordinance provisions perudning to dimensional criteria are waived.
Building Setback 25' 25'
N-10', S-0
E-10', W-0
N-10', S-0
E-10', W-0
Hard Surface Coverage
N/A 24%
Parking Stalls Combined
92 97*
* Thc 97 parking stalls include 3 Handicap stalls.
Market Square II
February 16, 1994
Page 11
~UBDIVISION
The subdivision proposal is a simple request that will serve to change the status of Outlot A to
Lot 1, Block 1, Market Square Second Addition. Staff has added a condition making the site
plan approval contingent upon the replat approval. The following easements are either illustrated
on the plat or should be required:
1. Standard drainage and utility easements around the perimeter of Lot 1.
2. Cross access easements need to be provided over the north driveway.
Planning Commission Update:
On February 16, 1994, the Planning Commission reviewed the following application:
1)
Site Plan Review for a 9,960 Square Foot Retail/Office Building, and a 2,533
Square Foot Wendy's Restaurant
2)
Replat of Outlot A, Market Square into Lot 1, Block 1, Market Square Second
Addition, 41,193 Square Foot Lot
As an oversight by staff, the application was published in the newspaper but a notice did not get
sent to property owners within 500 feet. Consequently, the public hearing was not closed, and
the decision was tabled until March 2, 1994. Notices for the March 2, 1994, meeting were sent
to neighboring property owners, and the Planning Commission was able to continue discussion
of this item and vote on it.
The plans were reviewed by the Planning Commission in fine detail and lengthy discussions.
Numerous issues were raised regarding traffic circulation; one vs. two buildings on the site, retail
and comn~rcial land use, and design and architectural style of the building. Ledvina, Conrad
and Nutting voted in favor of the approval of the site plan. The rest of the commission was
opposed. The site plan was denied by the Commission with a vote of 4 to 3. The subdivision
application was approved unanimously.
The following is a smmnary of the issues raised by the Planning Commission:
le
The interpretation of the word compatibility was questioned as it pertains to color,
materials, and architectural design of the buildings reflected in the site plan.
Commissioner Farmakes questioned ff the word meant "replicate a development to the
extent that you have an extension of that development." The choice of the color grey on
the buildings was also questioned as it relates to compatibility. Staff explained that the
intent was to have buildings that shared elements of compatibility in style, design, and
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Market Square
February 16, 1994
Page 12
materials. For example, it would prevent a Victoxian style building from being placed
next to a modern glass building. Commissioner Farmakes was concerned that using the
same color on the buildings could result in a "boring city."
e
The applicant showed two roof designs for the Wendys bpilding. These designs included
a mansard roof vs. a pitch~ roof. Roof top equipment could be screened in an easier
manner with a mansard roof than with a pitched roof. The Planning Commiz~on favored
the pitched roof option.
0
Commissioner Mancino questioned the use of a salelli~ dish on top of Wendys building
as currently exists at the TH 7 and TH 101 Wendys. The applicant staled that there will
not be a satellite dish on the roof.
.
Chaimum Scott wanted to see this item delayed until such time when the Vhion 2002 has
completed their task of evaluating the City Cenl~' and to determine if this proposal is
compatible and fits in with the overall plan.
Traffic circulation was one of the major concerns for some of the Planning
Commissioners and a main reason for the denial reco~tion of the site plan. As
alternatives accompanied by advantages and disadvantages for each option. A second
issue which rela~s to uaffic circulation is the drive-up window. Son~ members of the
Commission preferred a building without a drive-through to provide smoother u'affic
circulation.
STAFF RECQMMENDATIQN
Staff records the City Council adopt the following motions:
Site Plan Review
"If the City Council approves thc Site Plan for Edina Realty and Wendy's (/~89-2 PUD) as shown
on the silx: phm dated March 10, 1994, staff would rcconunend thc foUowing conditions:
le
Thc northerly access to thc shopping center from Madrct Boulevard shoukl be widened
to 16 feet wide facc-to-facc over the easterly 100 feet of thc silo. In addition, the
northerly radius should be expanded to 30 feet to impwvc turning movements into the
shopping center. '~No parking" signs shaH be placed along the west curb linc of the
parking lot lying north of thc northerly access to the retail sil~. In addition, "no parking"
signs shall be placed along thc cast curb linc of thc drivc-up window hmo to Wendy's.
Market Square II
February 16, 1994
Page 13
.
The applicant shall work with the city in resolving final placement of the sidewalk along
West 78th Street along with the landscaping. Landscaping other than the city's boulevard
trees shall be prohibited within the city's right-of-way or trail easement area. The site
plan shall be revised to show replacing the siclewAl~r along Market Boulevard.
The applicant shall enter into a development contract with the city and provide the
necessary financial security to guarantee compliance with the conditions of approval.
e
The applicant shall grant the city the necessary landscape and street easements along West
78th Street.
The applicant shall incorporate the City's Best Management Practice Handbook to control
site erosion. Type I silt fence shall be installed along the southerly perimeter at the
construction limits. Temporary rock construction entrances shall be required to minimize
off-site tracking. Construction access points shall be limited to the interior parking lot
and not on West 78th Street and Market Boulevard. After the storm sewer installation
and prior to paving the parking lot, the storm drainage inlets (catch basins) shall be
protected with hay bales and/or silt fence to prevent sediment from washing into the
drainage system.
6. No window signage shall be permitted on the Wendys or the OfficeJRetafl building.
.
The applicant must obtain a sign permit prior to erecting any signage on site. One
monument identification sign is proposed at the northeasterly corner of the site. This
location is in conflict with thc existing NSP transformers and traffic control box, as well
as being located with in the sight distance triangle. The monument sign shall meet the
following criteria:
d~
The height of the monument sign shall not exceed fourteen feet.
The sign shall contain no more than 41 square feet of sign area per face.
The sign shall be constructed to reflect the architectural style of the Market Square
shopping center. Staff recommends the sign design be identical to the existing
Market Square monument signs.
The owner of each monument sign shall be responsible for its consU'uction, repair,
maintenance and/or replacement.
Only one wall mounted sign is shown on the northern elevation of Wendy's building.
Wall mounted signs must meet the following criteria as identified in the plan:
a. The letters and logos shall be restricted to 30 inches in height and must be lighted.
Market Square
February 16, 1994
Page 14
be
Ce
All individual letlers and logos comprising each sign shall have a mlnimRm depth
of five inches and shall be consuucted with a translucent facing over neon tube
illumination.
The signage shall be lw. aled on a maximum of two elevations of the hfildings to
be conslrucled.
e
Five additional overstory trees shall be added along the southern portion of the site. A
berm shall be incorporated inw the plan to screen the trash location from views. The
applicant shall provide slaff with a detailed cost estimate of landscaping to be used in
building permit issuance.
9. Revise architecunal plans to reflect the use of cedar shing]eS on the offr, e/retail building.
10.
Approval of thc site plan is contingent upon thc replat approval from Outlot A to Lot 1,
Block 1, Market Square 2nd Addition.
11. Stop signs shall be placexi at the exit points of Wendy's and Edina Reaity's parking lots.
12.
Submit revised utility plans to reflect a fire hydrant location between the Wendys.and the
retail office building.
13.
The Fire Marshal will provide information regarding placement of '~No Parking Fire Lane"
signage at the time of building permit apphtion.
14.
The offi~ building must be fire ~inklered pursuant to Chapter 38 MN Bnilding
Code.
15.
Submit radius turn dimensions to Fire ~ ~n4 City Engineer f~r sppmval pmmmnt
to 1991 UFC Sec. 10-204(c).
16.
The plans shall be revised clatifyin~ the applicant's respon,ibility f~r relocating the NSP
~rand~ and extending a 6 foot wide concrc/e sidewalk along bhfl~ Boulevard to
the corner of West 78th Street. The city's wafr~ controller shall be left in pla~.
Subdivision
"The City Council approves the replat of Outlot A, Maxket Square to Lot 1, Block 1, Mazket
Square 2nd Addition as shown on the plat with the following conditions:
le
Park and trail dedication fees shall be paid to the dty pursuant to the city ordimmces and
City Council resolutions at the rate then in force upon banding permit application.
Market Square II
February 16, 1994
Page 15
2. Provide the following easements:
a. Standard drainage and utility easements around the perimeter of the lot.
b. Cross access easements need to be provided over the northeasterly driveway."
ATTACHMENTS
e
Report by Dave Hempel, Assistant City Engineer, reflecting the pros and cons of 3
options for the parking lot design.
Memo from HNTB dated March 18, 1994, evaluating the Site Plan Parking Options for
Wendy's and OfficedRetail Building.
Letter from Market Square Associates Limited Partnership and Lotus Realty Services, Inc.
dated March 21, 1994.
Planning Commission mutes dated March 2, and February 16, 1994.
Staff repons dated March 2, February 16, 1994, and October 8, 1990.
Plans received March 14, 1994.
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CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
TO:
FROM:
DATE:
Sharmin Al-Jaff, Planning D~partment
Hempel, Assistant City Engineer
Dave
March 9, 1994
SUBS: Update to Site Plan Review for Wendy's ~t and Retail Building Within
Proposed Plat of Market Square 2nd Addition
LUR File No. 94-3
._.,.'-~.
_-c. '-'
On March 2, 1994, the Chanhassen Planning C0~mm~_~s~i.'on denied the site plan for Wendy's and
retail building on the proposed plat of Mark~.Square.'...ilnd Addition. It appears the denial was
due to the traffic circulation and other rea//ons. As~directed by the Commission, staff has
reviewed with the applicants different altem~ives and l~Wvided advantages and
to
each option.
-~' '
...:
.."'ii-:" ,.-.:~.
Prior to preparing the summary of the;6Ptions, I would lik~.i~o provide some design elements that
are used in the design of parking lots Based on the Institut'-~i.of Traffic Eusineers.
.... :'
..
The design of a parking facility: is very strongly influenced b~-'~ts intended operation. The basic
design elements and their associated operational featla'es ma~ibe identified in succe~ve steps
as follows: ........ ' ...... '-~.~"~ ..... '--~-'-~-~-:-~'-'~-" .~':'
· -. . ;:.:.-'.;.-,~,._,-...',~-_~.,%~-~,-...-.-~_.,.>~.c.,..~=.~,~..;,.,~.~-,,:,-
· .. _::..~..~...-.., ::~:~-%y~rc.',~...-.;..:.k~.-..,-~-,~ ~, : .... · :.~.,.~ .............
I. Vehicular'access from th~-" .... ' ....... ':';' ..... ~ .... '" ~'~'~"~;-~:'~~'""'~z~->"~
street sysmm l, enmj unveway). ' ....
·.... . .. =':';:,,';~"'
2. Search for a parking stall' ':" ....... '~-~;'"~"~'"
- ' "-_'i- -~',:.-',.'~'::":"-: .... : '""
:.v':
3. Maneuvering space to enter the stall. !}i ~':
· ~.,_. .~.;.-'
~.--
4. Sufficient stall size to accommodate the vehicle's length and width plus spaco to open car
doors wide enough to enter and leave the vehicle.
.
Pedestrian access to and from the facility's boundary (usually via the aisles) and.vertically
by stairs, escalators, or elevators in multi-level facilities.
Sharmin Al-Jaff
March 9, 1994
Page 2
6. Maneuver space to exit from the parking stall (access aisles).
7. Routing to leave the facility (access and circulation aisles).
8. Vehicular egress in the street system (exit driveway).
Based on the design elements listed above, I have put together a list of the advantages and
disadvantages of three options that were provided by the applicant. I have attached each of the
options with a list of the advantages and disadvantages for consideration.
Upon review of these options, Engineering staff feels the most comfortable with Option No. 2
even though the northerly access aisle (driveway) does not align across with the existing drive
aisle in Market Square Center.
jms/ktm
c: Charles Folch, City Engineer
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LOT 2
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MARKET SQUARE EXISTING PARKING LOT CONFIGURATION
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OPTION NO. 1
.~dvanta_~e
,
Maintains pedestrian access through both sites.
Provides additional green space.
Eliminates the need for a cross-access easement.
Di~advanta_~es
,
.
Limits ingress and egress to both sites to only one access driveway.
Creates more demand on the southerly access (Wendy's) versus dividing the traffic
circulation to two exit points.
Limits parking to each site.
No vehicle stacking distance on northerly access for vehicles leaving retail parking.
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OPTION I
OPTION NO. 2
Advantages
_
.
.
Promotes smoother traffic circulation through both sites - user friendly.
Opens up site distance at intersection of cross aisles with northerly driveway access (retail
area).
Provides two access points.
Provides some stacking distance for vehicles leaving retail parking lot.
Disadvantages
,
,
Northerly access aisle does not align across with existing drive aisle in Market Square
Shopping Center.
Does not promote pedestrian circulation between sites.
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OPTION
OPTION NO, 3 (ORIGINAL DESIGN DENIED BY PLANNING COMMISSION]_
Advantages
.
,
Provides pedestrian and traffic circulation between both sites.
Both driveway accesses align across with existing drive aisles in Market Square Shopping
Center.
Provides two access points.
Disadvanta_~es
1
,
Intersection of retail parking lot and Wendy's parking lot not perpendicular, potentially
leading to driver confusion and turning conflicts.
No vehicle stacking distance on northerly driveway access for vehicles leaving retail
parking lot.
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OPTION 3
[~~~ ARCHITECTS ENGINEERS PLANNERS
MEMORANDUM
TO: City Council
FROM: Larry Dallam, Steve Manhart
SUBJ: Evaluation of Site Plan Options for Wendy's Restaurant and Retail Building
DATE: March 18, 1994
HNTB has evaluated the traffic circulation effects of the site plan options stated in Dave
Hempel's March 9, 1994 memorandum. Our evaluation focused on traffic to and from Wendy's
restaurant in relation to traffic associated with Market Square Center and a potential retail
establishment north of Wendy's.
FINDINGS
Option 1 (Single Access)
.
Conflicts will occur between entering and exiting Wendy's traffic at the access point and
between Wendy's traffic and Market Square traffic at the intersection of the access point,
the West 78th Street roadway and the parking drive aisle -- creating a "bottleneck" during
peak hours at the single access point. The delay and inconvenience could result in the
loss of patrons for Wendy's.
.
Unfamiliar patrons entering from West 78th Street may mm into the north retail lot
expecting access to Wendy's and either do a u-mm to exit or park in the retail lot next
to Wendy's and walk across the drive-thru lane. Patrons wishing to avoid the bottleneck
would also find this access and parking attractive.
Option 2 (Two Accesses)
.
Provides alternative entering and exiting points -- making the site more
accessible/convenient and traffic circulation more fluid.
.
RECOMMENDATION
The alignment of the northern access point with the Market Square parking drive aisle is
not a critical factor in determining the location of the access point -- since there will be
a minimal amount of infrequent traffic desiring to cross-over to and from the drive aisle,
the sight lines are unobstructed, and the traffic speeds should be low.
.' ~-; o::; i.', .;...'. ·
Based on the preceding Findings, it is recommended:
That the City Council approve Option 2 as the preferred site plan for traffic
circulation.
Tbc' It.\ 7 B ¢. ,ntp, n les
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MARKET SQUARE ,
-'i ~ , o p ,, , ,,, o__ ~ ,; ,,, ',' ,~ R {
March 21, 1994
TO ~
FROM:
RE:
Whom It May Concern
Market Square Associates Limited Partnership
and Lotus Realty Services, Inc.
Letter from Guy's Grill
It is our understanding that a letter dated February 11,
1994 from Guy Peterson was submitted to the members'of the
City Council, HRA and Planning Commission.
The likelihood of Wendy's being located at Market Square has
been a topic of conversation with various of the merchants
at Market Square for several months. Some of these
conversations have also included Guy Peterson and we were
therefore surprised to learn of his letter since he had not
expressd any real concern to us.
In response to Guy's suggestion that there might be a
conflict of interest on the part of Lotus personnel in
promoting the sale and/or leasing of properties on the
outlots of Market Square, it is our belief that Lotus not
only has a right to do so, it also has a responsibility to
do so.
Brad Johnson of Lotus Realty and Herb Bloomberg of Bloomberg -
Companies, the entity which previously owned and now has an
option on Lot 4 and Outlot A, are both partners i'n the
Market Square Associates Limited Partnership (MSALP), the
partnership which owns the Market Square Shopping Center.
It has always been the assumption by the partnership,
Bloomberg and Lotus that the outlots would be developed as
anticipated by the overall PUD agreement and it is the
judgment of all of the members of the partnership that the
additional traffic generated by the development is critical
to the success of the center and the merchants who conduct
their businesses there.
Therefore, we have all been working together attempting to
assemble the various ingredients necessary to the
development of Lots 2, 3, 4 and Outlot A ever since the
shopping center transaction closed on February 28, 1992.
Shopping center developments throughout the country often
are platted with a large tract which serves as the site of a
large, multi-tenant building and with several smaller tracts
located at the edges of the larger tract. These smaller
tracts are usually developed after the larger tract, as is
the case with Market Square.
Frequently larger anchors in the shopping center negotiate
limitations on the use of the smaller tracts as well as
"exclusive" clauses relating to the shopping center as part
of their lease negotiations. Smaller tenants also
frequently negotiate for the exclusive use clauses but only
as it relates to the shopping center building, typically not
the outlots.
At Market Square, Gateway/Festival sought and received
protective covenants which are of record which prohibit
certain uses and limit the height of buildings to 24 feet in
order to preserve sight lines. None of the other tenants
requested any limitations as to the outlots. Very few of
the tenants requested any "exclusive" rights within the
shopping center building and neither did Guy. His lease
contains nothing which gives him any exclusive right to
restaurant usage.
Despite that, not only out of concern for the businesses
located in Market Square, but also using prudent Judgement
on behalf of the shopping center as a whole, we have always
sought not only to keep a varied mix of tenants, but also to
avoid duplication.
As to prospective tenants for space within the Market Square
building prior to 100% occupancy and as to potential use
of the outlots, hair cutters, gift shops, drug stores, dry
cleaners and others have been turned away.
Guy Peterson entered into his lease-agreement at a time when
there was a pizza operation planned for the entire area now
occupied by Subway and Westermann's. When that pizza
operation decided not to locate there, Guy was offered that
space and he opted to stay with the location he presently
has. At that time, Guy was operating a business in what we
call the old drive-in and a business which we in Chanhassen
called either "Guy's" or "The Taco Shop". His change to
Guy's Grill is quite recent and came after we were well into
the negotiations with Wendy's.
Prior to that time, in deference to his business, we had
turned down a request by Taco Belle for a proposal for them
to locate on one of the outlots.
As a part of the negotiations with Gateway/Festival, we had
also negotiated an agreement with Gateway/Festival that they
would except from their exclusive right to sell food, not
only the existing restaurants at Market Square, but also
future restaurants, specifically including Wendy's, on the
outlots.
Guy's letter expresses a concern for sight lines, use of the
parking lot to access the site, parking, etc. Although the
tenants at the shopping center building are anxious for us
to develop the outlots, we're sure they all have concerns
regarding sight lines, as do we. Within the constraints of
various code requirements, we have been attempting to
preserve as much visibility as possible. Fortunately, the
siting of the buildings as recommended by the City staff
also serves to preserve a fair amount of visibility.
As to access through the Market Square parking lot, it is
not obvious unless looking at a plat that both of the
primary drives into Market Square are each 50% on the Lot 4
and Outlot A parcel. It has always been intended, and the
PUD Agreement requires, that the access to that parcel will
be from the existing entrance drives and not directly from
either street. In addition, we have complied with a
suggestion that the entrance drive off Market Blvd. be
widened as a part'of the proposed development of Outlot A.
It has also been assumed that the additional parking for the
buildings on the outlots will be advantageous to the Lot 1
development. Cross parking easements are already in place
for all of the parcels within the PUD.
We have no knowledge of any promises of additional open
space or greenways made by anyone, including the City, at
the time the shopping center was proposed. Nor do we
believe either the Merchants' Marketing Group or the Lions
ever anticipated any long term use of the vacant land for
events or Christmas tree sales. The merchants recognize
that Wendy's will attract a far greater number of folks to
the center then might be lost due to the lack of space for
promotions.
We are confident that anyone in the business of owning and
managing shopping centers will wholeheartedly agree that the
traffic generated by the proposed development is an
important ingredient to the success of the shopping center
and its merchants.
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CITY OF
690 COULTER DRIVE · P,O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
Housing and Redeveloprnent Authority
FROM: Todd Gerhardt, Assistant Executive Direct~
DATE: March 23, 1994
SUB]:
Update on the Hanus Facility Roof
Staff received a phone call from Gary Kirt ~tely two weeks ago requesting the lIRA
to go ahead with the re-roofing of ,the Hanus.~ty and that he would conmbut¢ $50,~
towards thc new roof. The architect s esti'mat~.~.'-~ ~lac~ tl~ roof is $57,,000. Staff feels that
in today's market the bids for this project ~ ~ under the architect s eslimate. I have
already received at least four phone calls ~__~. ~ who are interested in re-roofing the
building. ,~.!:'
~ '.~-'-.
Mr. Kirt knows that the best time to co ..mplem these ~ements is in conjunction with our
overall project, and he also knows that..;~.~ll tenants are ~g roof problems.
_.~.-. - "~.
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RECOMMENDATION "":" '~
.,- ._-.;~
SULff would recommend that ~"Hl~ direct staff to incl'., re-roofinS as psrt of tl~ overall
improvements to the Hanus facility ~ tl~ condition that ~ ff/rt submit ~ check to the Ci?
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CITY OF
7
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
TO:
Housing and Redevelopment Authority
FROM: Todd Gerhardt, Assistant Executive Director
DATE: March 25, 1904
SUBJ: Giving Notice to Vacam thc Tenants of thc Ptyzmus Build~g
$~_:-=
At thc last HRA meeting staff gave a verbal ~ regarding thc stmctmal conditions of the
Pryzmus building. Attached please find a ~'".fit~ the Fire Marshal outlining the Code
violations that exist today. Some of the viola~ ar~i~,.~nor, but some would be fairly expensive
to install. In lieu of making thc~ cxpcnditm'cS. ~'Staff ~.uld ~ that th~ I-IRA ~ staff
to prepare the necessary notices to all the ~ts that~ey have 90 days to vacat~ tbe ~
and to assist with the relocation prot~s. :"~?~~f.~.
ATTACHMENTS
1. Letter from Fire Marshal
MEMORANDUM
TO: Todd Gerhardt
FROM: Mark Littfin
CITY OF I
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 5531
(612) 937-1900 · FAX (612) 937-5739
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DATE: March 8, 1994
SUBJ:
Fire and Building Inspection at 421 W. 78th Su:eet
On Wednesday, February 16, 1993, Building o~ici~Steve Kirchman, Dave Dressier and myself
inspected the building located at 421 W. 78th..~rtreet~ Chanhassen. I have listed the violations
found with an appropriate time schedule fore, ode ;e.
1. Remove snow from west exterior st~y,~..,...~ and
2. Test and repair if necessary all smoke
corridors- Immediately.
andiag- Immediately.
ia the iadividual apartments and
3. Remove all material ;tairs corridor - .tely.
4. Yearly servicin ,guishers and re-hang - [ately.
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5. Remove
6. Remove ldckstmad ,or going from 1st floor to
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7. Add 2 single station battery operated ia the upstairs hallway- Immediately.
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Within 10 days the following three items mu~ completed:
8. Replace the cover on the electrical service box - 2nd floor hallway, mechanical room/
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9. Proper clearance to combustibles must be maintained around the basement furnace flue.
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Todd Gerhardt
-' March 8, 1994
Page 2
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I0. Replace the cover on the open electfic~ box in the basement bedroom. -
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Within 45 days the following items must be complete.
11. Interior exit enclosures must have a flame spread rating of class A or B.
accomplished by one of the following ways:
a. Remove the paneling and replace with 5/8" type X gypsum board.
b. Cover the paneling with 5/8" type X gypsum board.
c. Cover the paneling with an intumescent paint or varnish.
This may be
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12. Install door closures on all apartment entry doors.
13. Apartment entry doors must be replaced with solid wood or 20 minute rated fire doors.
Please contact me by the appropriate dates when work has been completed, so a m-inspection can
_~e place.
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Sincerely, _
M~k Littfin
~as~ Fire Mm'~hall
ML/eb
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ce: Scott Hart, Public Safety Director
Steve A. Kirchman, Building Official
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ADMINISTRATIVE SECTION
Mr. Don Ashworth
February 24, 1994
Page 2
1
If the entire subject property is condemned, Bloomberg's option is automatically
terminated.
If Bloomberg exercises its option to purchase the subject property:
Any proposed development of the subject properly by Buyer shall be
subject to the approval of Seller. In determining the appropriateness of
any such proposed development, the Seller shall take tnto account the
proposed use of the subject property, the destgn of the proposed
development, the architecture and construction of any proposed
structures, the proposed access routes, parking availability and proposed
signage. If the proposed development is unacceptable to Seller due to any
of the foregoing factors and the proposed development ls dented by
Seller, the parties shall treat such dental as a third party offer In
accordance with Section $.2 of the Real Estate Option Agreement of the
parttes dated February ,1992. In such case, Seller shall pay
Buyer the sums set forth tn Section 3.2 of satd Option Agreement.
This means that if the HRA turns down Bloomberg's development proposal for one of
the specified reasons, then the HRA keeps the subject property but has to pay Bloomberg
an additional $1.00 per square foot for it.
RNK:srn
Very IrS,
A!
SCOT]~
ADMINISTRATIVE SECTION
Rice Lsr¢ Firm,
575 West 78th Street, P.O. Box 11UO
,l~,,ld,~'" John D. Rice
Chanhassen,
Minnesota
55317
Tek (612~ 949-9616 Fax (612) 949-9589
February 28, '199,1
City Council
City of Channassen
690 Coulter Drive
Chanhassen, Minneso=a 55317
RE: Lot 4, Block
Market Square
To the Ci=y Council and 5he honorable ~.,e~,bers =~eraof:
are counsel loc BloomDe£g Co~;~panies £ncorpora~ed.
The context of the zransacLion be=ween '~he HRA and Bioomberg
Companies Incorporated is impo~"¢a~ uo unders~anu~nq ~he
transac%ion of February 27, 1~92.
Herbert BloomDerg nought ut~e p'r'operr_y (i~a z-~ ¢)~.' the o].(~
ScDur. rop farm) in the early 1960's. Subsequens].y the ownership
interest was transferred to hloomberg Comp~,ies rnco~'poraued's
predecessor. For over 30 years Herbe£'c Bioomberg or the company
had owned the land.
One of the purposes cf 'ch(.- """
ll~,z-.-f~ £O~31::Dt-.r':l~ L~-~nsactJ.on was to
infuse capital into zl]e i, iarKr~.'[. Squa~:e Center ,]~.v~: i.'z,f,ment. The
shortage of capital for m,%r"er. Ezl~i~-~'e ,~e'.'.':lopnie~lt occurred
B]comberg's prior coI~trac'a re=' ~hu s~;]a .:~." i.,,~'. = be.lng
The HRA-Bloomberg transac=ion -':l:.:o .~:~'~ E%'~'~:,'~re.d ~:o e;~co~rage
Bloomberg Companies to continue the duvelol'~,~uf:h of ..-.ne p.c¢)perty.
The HRA was not to be a long term ownei' of t.;~= ~.~el~e=-t.y; that
was not perceived as its function. The ~ran~&ntjc,;~ ~as to
facilitate and enable the commercial deYe]op~,,~nt, u£ t~:= Drcpsrty
by Bloomberg Companies Incorporated. Tha~ was at t~a t~n=, has
been since, and continues to be the in~ent and pdupeue.
At the time of the Market Square C~nter ~ansuc~ion Deinq
closed, a contract for deed for the transfer o~ th~ property tro,,
Bloomberg Companies Incorporated to the HRA was signed and
recorded. The process of the option for reacquisition sy Bloomberq
The City Council
Page Two
February 28, 1994
was in the agreement from the beginning. In October 1992, the
contract for deed was paid up, and title subject %o the Option was
transferred to the HRA.
I have received a copy oi Roger Knutson's letter to The City
of February 24, 1994.
I respectfully disagree with several of the stated conclusions
as follows.
(a) As to 1, the HRA has record t~=]e to the property, but
i~ i~ not a complete descrip~icn of ~c o~nersl~ip. BioomDerq
Companies Incorporated is the equitable owner of the property
considering it has a recorded option interest; the historical
context; and its development activities, efforts and expenditure
of funds since the transaction.
The ownership interest of an equitaDle owner, subject only to
performance of requirements to secure legal title, is superior to
a record title ownership interest.
(b) As to 4 and condemnation, tn= option wou/O end since it
is subject to an otherwise legitimate eminent Gomain proceeding,
as is any "interest" in real estate. However, the condemning
authority would be required to provide "fair and just compensation"
to Bloomberg Companies Incorporated for its ownership interes~ in
the land.
(c) As to 5, the price that the H~a would pay to Bloomberg
Companies Incorporated fo~' Lot 4 an~ Outic~ A, upon appropriate
rejection of a development, would be tile ua,ount of the proposed
purchase price in the contract with the Buyer~ less tne $280,000
required to be paid by Bloomberg Companies Incorporated to the BRA.
(d) As to 5, Bloomberg Companies may exercise its option to
purchase the property at any time up to March 1, 1995, without the'
necessity of having a pending development proposal.
The City Council
Page T~ree
February 28, 1994
At the HRA meeting on February 24, 1994, there was discussion
of the "City of Chanhassen", as a "third party", undertaking to
purchase the property.' In my judgment and opinion, given the
community of interest and commonalty of membership betweemothe City
Counsel and the Housing and Redevelopment Authority, and the
overlapping representation, the City of Chanhassen is not a "third
party" within the meaning of the contract.
trust this review of the transaction will be helpful.
Yours very truly,
JDR:kaw
RICE i. AW FIRM, CHARTERED__,
.~Sn"g.-Rice ','
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CAMPBELL, KNUTSON, SCOTT & FUCHS, EA.
Attorneys at Law
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BY FAX AND MAIL
Mr. Don Ashworth
Chanh~sen City Hall
690 Coulter Drive, Box 147
Chanhassen, M'umesota /5~317
February 24, 1994
(612) 452-5000
Fax (612) 452-5550
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Outlot A and Lot 4, Block 1
M~at~m~ SQUARE
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Dear Don:
You asked me to outline the stares of Outlot .A, MARKET SQUARE and Lot 4, Block 1,
MARKET SQUARE (collectively the "subject property').
On February 27, 1992, the Chanhassen HRA ('HRA") entered into a contract for deed to
purchase the subject property from Bloomberg Companies, Incorporg~ ('Bloomberg"). The HRA
subsequently received a warranty deed from Bloomberg. On February 28, 1992, the HRA granted
Bloomberg an option to repurchase the subject property. The option expires on March l, 1995.
Based upon the above documents and the exhibits attached to them, this is tho current status of
the subject property:
l,
,
,
The HRA owns the property.
Bloomberg has an option to repurchase the property until March 1, 1995.
If the HRA receives an offer from a third party to purchase the subject property while
Bloomberg still has an option to buy it:
a. Bloomberg can match the third party's offer and buy the property.
be
Bloomberg can decline to match the offer and not purchase the property. If this
happens, the HRA has to pay Bloomberg an additional $1.00 per square foot for
the subject property.
' :, 1994
Suite 317 ° Eagandale Office Center ° 1380 Corporate Center Curve · ~ MN3~~r~
Mr. Don Ashworth
February 24, 1994
Page 2
If the entire subject property is condemned, Bloomberg's option is automatically
terminated.
If Bloomberg exercises its option to purclaase the subject property:
Any proposed development of the subject property by Buyer shall be
subject to the approval of Seller. In determining the appropriateness of
any such proposed development, the Seller shall take Into account the
proposed use of the subject property, the design of the proposed
development, the architecture and construction of any proposed
structures, the proposed access routes, parking availability and proposed
slgnage. If the proposed development ts unacceptable to Seller due to any
of the foregoing factors and the proposed development is denied by
Seller, the parties shall treat such dental as a third party offer tn
accordance with Section 3.2 of the Real Estate opaon Agreement of the
parties dated February ,1992. In such case, Seller shall pay
Buyer the sums set forth tn Section 3.2 of sald Option Agreement.
This means that if the HRA turns down Bloomberg's development proposal for one of
the specified reasons, then the HRA keeps the subject property but has to pay Bloomberg
an additional $1.00 per square foot for it.
RNK:sm
V~ry tra,
$COTF
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