EDA 1994 09 22 AGENDA
HOUSING AND REDEVELOPMENT AUTHORITY
THURSDAY, SEPTEMBER 22, 1994, 7:30 P.M.
CHANHASSEN CITY HALL, 690 COULTER DRIVE
1. Call to Order.
2. Approval of June 23 and luly 21, 1994 Minute~
VISITOR PRESENTATIONS
3. Update on Senior Housing.
4. Consider Approval of T.F. J'am~ Settlement.
5. Update on 1994 Goals.
,NEW BUSINESS
®
Review 1995 Budget Proposal.
Approval of Bills.
HRA PRESENTATIONS
CHANHASSEN HOUSING AND
REDEVELOPMENT AUTHORITY
REGULAR MEETING
JUNE 23, 1994
Chairman Bohn called the meetihg to order at 7:40 par~
MEMBER~i PRESENT; Don Chmiel, Mike ~ Jim Bohn
MEMBERS ABSENT: Charlie Robbins and Gary Boyle
STAFF PRESENT; Todd Gerhardt, Asst. Executive Director
APPROVAL OF MINUTES: Chmiel moved, Mason seconded to approve the Minutes of
the Housing and Redevelopment Authority meeting dated May 19, 1994 as presented. All
voted in favor and the motion carried.
VISITOR PRESENTATION;
Craping of the meeting began at this point.)
Chyton Johnson: ...basically got HRA, well Planning Conunission, Council approvnl in
October. It took us from Ocwber until January to get the place platted and I think some of
you were involved because we actually came crawling on your doorsteps at midnight,
December 31 st to get the place platted. We've had a number of building code issues and
structural issues that have finally been resolved and we have gone, we are out for bids right
now on the rest of it. Our tenants have been very patient Stuck with us through this whole
thing. So that's not an issue but the next thing is making sure that, we've got financing in
place but the next issue is whether or not the construction n~s will come in within
budget and we can proceed. Then the other thing, I've naked Bob Klein, representing
National Lodging, our hotel partners, to stop and give you a little update on what's going on
the hotel. Bob.
Bob Klein: Thank you. As Clayton said, I'm with National Lodging and with respec~ to the
motel, we have had a n~ of conversations with financing source~ The current situation
is that thc mortgage lender on the ~ in exis~nc~ right now, Eureko, is not real anxious
to put another loan. They really want to get out of the motel lecr~_ing business and the hotel
lending business. We have prepared a package and we're going to present that next week to
several financing sources on a two stage basis. What we're going to need is to get a group
loan for the addition and then to link that with the permanent loan, the take out loan towards
the first of year and pay off the existing finance no~. And the reason the first of the year is
Housing and Redevelopment Authority - June 23, 1994
a critical date is because there are large pre-payment penalties if it's paid up before. That's
our plan and we're prepared to...
Bohn: Thank you.
Gerhardt: The second person that requested tx) speak to you tonight is Brad Johnson of Lotus
Realty. Brad asked...to update you on their efforts at redeveloping both the bowling alley and
what we're calling the city building and the back side of the Frontier Building, the lumber
yard area. Brad has been working diligently over the last 6 months and has hired an architect
to do some renderings and they asked to give a formal presentation to the HRA tonight
showing their concept of how this area might be redeveloped. At this time I'd introduce
Brad.
Brad Johnson: Thank you very much Todd. Members of the HRA and Mr. Chairman. This
evening we'd like to present to you some working drawings and things that we have come up
with over the last 6 months in working with the various owners of the properties and
businesses and tenants in what we're calling the city building, as Todd has explained it.
We're not expecting much of a...reacfion but we realize all we're really requesting is that we
get a reaction and go into the negotiations with the staff to figure out how to get done what
we have to get done. We're presenting it to you prior to the Planning Commission and City
Council simply because it is strictly a redevelopment issue. And we would anticipate that if
this were to go forward as planned by us, it would mean the creation of a new tax increment
district over in that particular area. But this probably qualifies as a redevelopment, two
redevelopment areas. And we believe, based upon our consultants, that it can work out. The
parties that are working on this and have all financially invested in it are Pauly's. Russ Pauly
is here. Bloomberg Companies. Dan Dahlia who represents the bowling alley and Copeland-
Mithune who represents the movie theater group this evening. And then ourselves. We feel
that, have felt that among those partners we can achieve most of what we need as far as the
financial necessities to create something on the inside. What we're going to be requesting
you to review is what it looks like on the outside. $o that's a critical issue. I'd like to show
a little slide show for you and I think you'll get the idea of what we're trying to do. By
doing that and periodically I'm going to ask Tim Howell, who's the architect, to kind of
chime in and get you a little motivated. Our presentation on the slide show is primarily,
initially to show some typical types of architecture that we're trying to deal with in creating,
which we felt say community, whether it may not be one right now. And what type of
architecture Tim are we trying to accomplish here?
Tim Howell: This is somebody's back yard here but basically we're talking about a period
from the turn of the century to about 1930 building, in that area. And I think you'll find that
in most of the downtown, smaller town areas around the country. And preserving some of
Housing and Redevelopment Authority -{tme 23, 1994
the f'mer things that are in those areas. And for example, in this particular slide, you see the
windows projecting out in a showcase type of thing. The replication on this corner of the
building. The balconies. There's an arch back in the back on the ri~t hand side between the
brick. So these are some qualifies that give a rather human feel to... Here again is another
type of construction that is reminescent of that period.
Brad Johnson: We're showing just different images to give you an idea of where we're
coming from. What era is this in?
Tim Howell: Well this could lii~u'ally be before the 1900's in terms of the kinds of malefiaLs
that you see depicted here. Here ag_sin_..and the stone work and the trees on the top, those
are all reminiscent of classical kinds of archit~ture but were used quite heavily in the
vocabulary of architects around the turn of the century. Just a comer, consUuction comer
showing how some of the things were done. Here's one...and yet from the su'eet side it
comes out quite nicely.
Brad Johnson: A couple different kinds of window treatments.
Tim Howell: This happens to be a movie th~__u~r with sort of the...fancy kind of environment
that is inside. I think you'll find most theaters do that kind of thing. They give you a
feeling of something a little extraordinary. This is a very...a lot of color. A lot of inlm~t in
shades and forms with the balconies and this kind of thing.
Brad Johnson: And those often are the things that will go through is that...~~ 2002 has
selected this to be an entrainment section of town, we're trying to make it as close to like
something that's probably an en~g and a place you'd like to go. And maybe go to a
movie and go to a restaurant or whatever. This is sort of reali~. This is what we have today.
Obviously there's very little restaration we can do here as far as archi~-ture is concerned.
This is the back alley, way behind the Dinner Theater and ff I recall correctly, the original
HRA was established to basically redevelop this Imrficular area. Since that time we've kind
of gone all the way around it and never quite figured out how to do this part. Our proposal
would deal with how to deal with this prhnarily in a private way. One of the further
additions to the back area there was the bank building, which has some of the architectural
qualities and dealing with more on a conmnporary basis but has a couple of things like that.
And these are just things to remind you of what we have currently. Where we are and by the
way, this is the first redevelopment project, if you recall when we did the bowling alley.
This was considered redevelopment at the time and when I first moved here, I think this was
the newest building downtown. And it also points out how things can change~ If you recall,
when they did this, this was all new. They resudaced the __,ialng and painted it and that type
of thing... You've heard a little bit about the hotel, and the hotel of course is fight smack
Housing and Redevelopment Authority - June 23, 1994
adjacent to this and so there's a potential...ldnd of an area we're trying to deal with. We also
presume that when we try to deal with this. We also presume that when we ~'y to deal with
this, we're...because it's being used as a band theater. That will be terminated as of I think
this fall... As I said, this is the newest portion. I think this has been redeveloped twice since
19'70. That was a brand new building when, 19737 '747 Now what we're going to deal
with now is some changes that were made to more classical buildings at this time. These are
all restorations that you may or may not recognize. This is the International Design Center
which has probably the late 1800's.
Tim Howell: This is the...that is probably around the 1890's.
Brad Johnson: The next one is the Whitney Hotel area. One of the things that people have
brought up in the 2002, is that they'd like to have people have a place to sit and talk and
walk and stuff like that. As part of the overall picture, we don't really have that kind of
space here in the comm~ty where you can kind of go gather and have...I guess that's all
outdoors. Here's another building that's been done. What we're trying to point through here
is that downtown is actually collected. In other words, there's no real one period of
architecture that you can see. These are all photographs that are over in the seven comers
area around the University. There's quite a bit of architecture there. You'll probably
recognize this. Some of it's on Washington Avenue. So you can kind of get an idea of how
people have improved buildings but if you look from one building to the next, this would be
typical of downtown Owatonna or downtown New Ulm. Any small town which you've
probably ever been raised in, a lot of buildings have been burned down. They've been
replaced. They all started out as wood. And these are the buildings that have remained and
have been preserved in downtown areas.
Tim Howell: This is a very common one you'll see in a lot of communities in Minnesota and
Wisconsin. Again, probably having been restored, but it's adjacent to the next one is it gives
you sort of a texture or tapestry of something rather than being all contemporary or all one
type.
Brad Johnson: I threw this in only because it's near-by. A lot of people here eat there. It's
a little more contemporary but it's an example of outdoor eating and how it's been
incorporated into a localized building and a fairly successful business. This is around over in
the Cedar Riverside area where they just basically decorated up some older buildings and
from a retail point of view...Midwest Mountaineering is very successful. You know we've
got our own City Hall type of stuff but this is an architectural type that's there. These are
probably earlier, about 1880...And then this is an example of a street that's been redone and
you can see that there's different architecture in each building and then they've added
streetscaping and that type of things in trees to make it pedestrian friendly. Which is another
Housing and Redevelopment Authority - ~Iune 23, 1994
key element of the vision. Probably aa you look around the city, and you probably recognize
this. Even though the mass of developm~t that's within this halt not been real successful is
the St. Anthony on the Main and Riverside. The buildings and the businesses that have
stayed on the street and weren't inlmaml, have done fairly well. For example, Pmcna on the
Main has been there and probably this portrays the~..whea I was going to school they were
just starting to redevelop ~hi~ area and we were involved in parts of this at a certain time.
But that would be the typical...main street that you know we can all see, · There's trees. It's
pedestrian you can see down the meet There's a place to fish. There's places for people ua
sort of park themselves and...because it faces the same direction as the bowling does. It faces
south where we have sun. And it's nice for part of the year and for about 3 months of the
year, it's really hot over there and you have w deal with trees but if we were to go down
here, I'd suggest you'd do this with main street is...I don't know 15-20 years later, but the
trees have grown to the point that it's very comfortable. As a matter of fact Ladd Comaui,
you're looking at Ladd Conrad's office and he's worked... Again, you see how the
architecture is collectexL Is anybody from a small town, reme~ the kind of Wabasha or
Winnoa or someplace like that along the river. Any of those c~ammuzfities have this type of
thing and just...and it was all put together. Obviously the city of Minneapolis lmrticipal~! in
the improving of this. That's very much like some of the big, any architecture that we've
showed you. You can look in the back where they have a seating and then there see the
movie theater has been in~ed into the project. And as I said, this is kind of a very good
example of you know, it's kind of hard to say what the redevelopment's going to look like. I
think we're learning that the next day. You know we say where are the trees7 We just
approved all these trees and everything but it takes 5, 10, 15 years for evelything lla mattlre
when you talk about landscaping. And this area has done that. The buildings were done a
long time ago. Now this is an example of the decking area here and on this area I don't
happen to have some pictures...and really a lot of the ideas that we'r~ using are going to be
coming from the Canal Park area which is probably the most successful of all areas currently
in the redevelopment business, where they've actually put an entertainment complex together
and you literally don't have enough places to park because everybody wants to go there and I
think this is what we're trying ua create. Trying to ~ a commnuity where people in the
community want to go yet people from outside the comrmmity will come. The vendors and
the marketing people that are definitely inai_cle the business are succemffuL .~nd you're
competing with other places... Again there's diffeaz~t ways of Rivemide. Outdoor eating
again. The weather's been tm'fific...and that's, if you remember what we have. And so it's
really hard and what we've asked Tim t~ do is to tak~ that and he's brought to us the concept
that we've just approved. And we're going to now tmnslat~ this building into gOHlething that
probably could look more like this. Now that's what I call true redevelopzzm~ If you're
going to go from here to here. And our goal is that one of the lmapeafies...who are
participating in this would jointly do _thia and we've attract~ two major lmmnts. Russ Pauly
who has committ~ to relocating and sort of redefining his business in a way, right? I mean
Housing and Redevelopment Authority - June 23, 1994
it's a major enterprise and invest a lot of private capital in and then a movie theater which we
feel as being a draw and preserve the balance. So I'll tell you what I'll do, I'll turn this off
and then Tim is, you can always remember what it looks like.., never go back. The most
comments that we get is what Chanhassen looks like from Highway 5. And one thing we'd
like to change. We're not saying we've got all the answers. Our objective was to take this
non-conforming asset, an asset that is basically losing money for everybody that owns it. It's
a nightmare for Dahlin. I mean he literally has been worrying 24 hours a day about that
property. Not so much trying or anything from econo~c consequences, but owning it and
didn't want to own it and it's never been really well defined and then the Bloombergs are
supporting, basically a use that's...because this is what this is. The right hand side is
primarily warehouse. And then we have the Frontier Building which has a lot of square
footage and potential and all of this is sort of a part of that building. Tim, do you want to
kind of go into this? Do you have any questions? ...presentation.
Tim Howell: The first thing, excuse me. I'm Truman Howell. I've been here before and I
recognize your faces. I'm sure you probably do mine. The first thing we did was to look at
the parking and to see if in fact it's even close to what we might have for a need. And this
is the area that we're going to be dealing with primarily. The bowling alley, the restaurant
area here and I'll show you later where the other pieces fit in. And we're developing a
streetscape along the front of these buildings. As you may have noticed on the photographs,
the actual floor level of this building is 4 feet above the driving area. And so what we've
created is a raised area in that location that will become a streetscape that will bring into use
things like eating places, places to sit, trees, ali kinds of landscaping, and with access for, not
only the general public but handicap accessible. That kind of use. And we've finished first
the parking around here to satisfy what the requirements would be for the retail area, the
bowling alley, the restaurant and the theater. We developed 660 new parking spaces in this
study and the requirement that we have at this point is 659 based on the code that we have
here in Chanhassen. Therefore we would throw in one space, but we're close. In a little
further detail, we've blown up the streetscape and identified the areas that will be within the
framework of that building. The bowling alley where it is presently located. The restaurant
in this location. Retail areas towards the center. Theater over in what's I guess called the
city building at this point. The retail space and force some retail space in the present Frontier
building. We developed this raised platform all the way around the building. Around here
would be at grade. The passageway between the buildings would encourage waildng areas
down from above into the area here. Obviously with this number of parking, there will be a
lot of people coming from right on the site. We have three ramps, handicap ramps to the
streetscape. One here, one here at the theater entrance and one over here. You also would
have a site for not only sidewalks but stairways that have similar locations. We enclosecl the
dock and trash areas so they're not noticeable. We blend them into the construction. We
have street lights. We have textured walkways and floors. Landscaping throughout. Benches
Housing and Redevelopment Authority - Sune 23, 1994
here and tables. Over on this side we have dining facih'ties for outside dining and' that is
acceptable with the weather. And we've tried to keep it so that it can be used. It's an
interesting place to be. We havd a dock tower. We've indicated here so that it would be a
place that would be of some interest to not only the shoppers and diners and tbeater goers.
Now this will give you an idea of the kinds of bnilding$ that we'd be putting the~. The front
that we'd be putting there and I say front in a sense that we would not be tearing down the
existing buildings but we would be adding to the face of that building with the constmcfion~
Down on the, it'd be the far western side, would be a restaurant. And the restaurant would
have, actually the restaurant portion would be over here but because we have some flexibility
we can make two buildings out of this. Come down to the entrance to the bowling area. The
bowling alley would have it's major entrance at this point The retail area would be in these
individual facility spaces. And then it would be rocked off on the eastmm end by the theater
that is planned to be a 6 unit complex. Now the signs would be a similar flavor here, here
and on the Frontier building as well. It would be of a charac~r of a city. A downtown city.
Obviously a lot of the landscaping that I show here is le~ out here so you can see the
buildings but it is indicated and of course would have all kinds of activities. Probably places
to, people can come down and walk. Just amble around the area and be a part of what would
be a nice downtown feeling. The different types of buildings, we've done everything from
what we would consider a 1890's building to things that are more traditional in the 30's to
the turrets and...things to add interest. And com?aring this appearance with the
present...you'd have to say that going down Highway 5, people would probably turn in just to
be there. It would certainly be a place to be. Are there any questions that I can answer for
you?
Brad $ohnson: Do you have any questions or any feelings? Our proposal of our financial
concerns I suggest you create a new district down there to leave the capmr~ increment that's
already there and within your current district so we would not be using any of the current
increment that is being generated which is about $60,000.00. And we would probably
increase the tax base in that particular area from about $80,000.00 to $180,000.00. And our
proposal would be that that increment would be used in the new district to help finance
basically the sod and the su'eetscape and the pextdng lots and iznpmvcmen~ that are
necessary. As I said, this also maintains the pm:kin~ lots. All the perking that is needed for
the transfer of facilities. It makes it possible over time, just because of the usage. We have
far too many parking spots but because of city code we have to be able to show. There's
only about 2 hours, 4 hours a day per week that all this perking would be used, and that's
Friday and Saturday nights between the hours of 7.'00 and 9:00. That's when the movie
theater and the bowling alley and thc restaurants and all that peak..~kx~nber 28th when we
actually need ali this parking. There's been some talk of light rail transit. Having a depot or
something down in thai area. All of which, because of uses we're using the parking
complimentary to what we're doing. I think our k~y ~t he~ is thai we feel that the
Housing and Redevelopment Authority - June 23, 1994
exterior of the building should be improved. TMs is not a real, even though it looks rather
extravagant, it's not a real expensive thing to do. Much of the costs of the improvements that
we're doing are actually in the parking lots and roadways and things like that. About half of
it would be the exterior improvements. The parties that are involved in this project are
committ~ to invest of their own funds, somewhere between a million and a half and 2
million dollars into this particular project. And it would be, probably depending upon how
we did it, maybe no need for bonding or anything like that. It's just how we slructured the
transaction to accomplish this. It's our feeling that this is really the key area of the
community. We have to do something different down there. Blow it up and start over again,
we started with a $3 million demolition problem and go from there. So the current land
values in Chanhassen, which are high, they'll have to reach $10.00, $15.00, $20.00 a square
foot before it would probably be viable to do on a private basis redevelop this area, which
could be as late as, you know the year 2015. Somewhere in that area we may see some
changes in the Dinner Theatre complex because it will make sense. We have an handout you
can review that kind of summarizes everything that we're attempting to do. Our basic request
is to primarily to start this process through the city to see how we could do it. We have, as I
said, a fairly significant commitment from the private side towards this project. We're not
asking to build movie theaters and that type of thing. One of the things that we did do in
securing various tenants is to make sure they had the money to invest in their own inside and
that was one of our concerns. So Pauly's will be investing in the neighborhood of
$500,000.00 to $700,000.00 to improve Filly's. That will be on a private basis an additional
$200,000.00 to $250,000.00 in the bowling alley and the movie theater on a private basis will
be financed to the rune of about $800,000.00 to $900,000.00. I mean that will be the private
side investment into this. And they're all viable that way. The thing that is not viable, and
that's why you have downtown redevelopment, is to change the exterior w the tune of, we
think...so it becomes something of an attraction. There has been some interest in having
some what we call ancillary buildings. You know people or whatever you would like. That
would be possible but we'd really mask out parking so somebody would have to come to the
conclusion as they did in Waconia and as they have in Chaska and Excelsior, that to preserve
the downtown, parking can be in different places. The new theater in Chaska has how many
parking spots?
Tim Howell: 60 or so.
Brad Johnson: And how many seats7 5007 So they somehow figured out how to do the
same with Waconia. There's not significant parking but what happens is people walk to those
events. They're...block or whatever and it seems to work. So that is our proposal. We'd
like some comments. I guess we'd like at least a recommendation that we proceed with staff.
Or if we're going out in the wrong direction, we'd like to know that.
Housing and Redevelopment Authority - Sune 23, 1994
Bohn: I have a question. I think the building's the scene shop and I forget what they call
the other one. The outside of those be changed? .....
Brad Johnson: I can have, right now they're leased to other parties. You know we could
have phase 1, phase 2, phase 3. Each of those have ~n econon~, invesmr~ that could invest
this anticipate they would purchase the Frontier Building potentially and put all these, they
realize that these buildings in many cases are in 3 or 4 different ownerships so we have the
ability, because of the people we're dealing with, to assemble that all in one ownership. And
we have some problems because as you get farther away from this, there are agreements in
place between the Bloomberg Companies and the theater relative to purchase and leases and
things like that. And then there's also the economics of again blowing away a building. If
you go in and take a building and tear it down, and it's a term for using $20,000.00 to
$30,000.00 of income to create a parking lot. That somebody has to be compensated for that.
So we have not pushed into that, unless as we go through that process, this becomes a good
idea. And that's generally where we're at. And that's possible. It's just a matler of looking
at it all. So we've gone through, as we would see it, the one or two or three phases And
the first phase would be to basically do what you see here. Along with the Frontier Building.
Whatever we do we have to come up with a long term use for the Frontier Building because
we're affecting this parking and right now, as you know, it's basically a warehouse. You
know if you go inside, and Bloomberg's proposal along with this is to create a retail
environmental down there of 120 feet so that would be somewhere between 8 and 12 stmes.
What's nice about most of thi.~ is it can be rented reasonably. ~nably being $8.00 to
$12.00 a square foot. New stuff that we're developing in town now has to be rented up in
the $14.00 a square foot category in the retail side makes sense because of land values. So I
don't know if that answered that question. I know if somebody said let's do it and we have
to figure out how to do it. We originally starl~ out just in this building but it seems obvious
that it would probably be a good idea to do the Frontier Building in this also.
Bohn: Thank you.
Brad Johnson: And the numbers seem to work. Have you got any comments? Is it mo
much to believe or?
Chr~el: Well the introduction of another kind of building within the city and you're saying
from a traditional aspect Some of that, is there a gothic aspect to what that one building is
Bohn: Which one?
Chmiek Down towards the theat~.
Housing and Redevelopment Authority - June 23, 1994
Tim Howell: Oh, well it's not gothic per se, no. But I understand what your point is. Is
that, all I'm saying is as we saw on the slides in thc existing town, they tend to be, theaters
tend to be the...
Brad Johnson: I think the architecture, we've heard in the last 3 or 4 presentations that...as a
city that we should not be aU the same. Should not have aU. .. should not be all glass and not
all gables. This is very traditional. It points out, and if you look at, and if you have any
questions, just go down to main street on St. Anthony Main on a nice day and it's very
pleasant there. This is a different face. We want to make it attractive. If this is, obviously
the architecture here is not hard to change, right? I mean not change once it's done but I
mean in a concept it'd be very, to whatever architecture we want to do. But the idea is
collected, fight?
Chrniel: What heights are we talking in comparison to some structures?
Tim Howell: It'd be about the same, except for.
Chmiel: Some of the additional facades put on.
Tim Howell: Right in here but obviously this is higher but yeah. And then it drops down
here towards the end.
Brad Johnson: You're dealing with fairly high buildings so anything you put in there has to
look sort of like 2 stories... That's just what it is.
Tim Howell: I would say it would stick up maybe 4 to 5 feet in general. But we need to do
that to attach it properly. And some of these front doors are not real doors obviously.
Brad Johnson: There are materials now that are used to make things look like the past that
are not as extensive as recreating the past. So that's why we're, the facade it,seN has some
flexibility. And many of the new homes that are being built are being built out of the same
kind of stuff. And that's I guess what we'll be doing is starting a process through and
perceive that this is a liRA project, not a Planning Commission project initially and not a
City Council project initially only because we have to deal with the financing side and the
economic feasibility before we progress too far. Then would come design.
Mason: My only issue with that, I understand where you're coming from Brad. My only
issue with that is then Planning Commission and City Council is going to say that HRA blind
sided them. And that's an issue we're constantly trying to work out and that in itself makes
it difficult. So I don't think you can just come before HRA and say well, HRA said it's
10
Housing and Redevelopment Authority - June 23, 1994
great. What's the matter with you people. Not that I'm impl~g that you do that but things
like that have happened in the past and you know as well I do, there are Council mgmbc~
that are saying, you know come on. How come HRA is behind this. We're supposed to be
leaders of the city. Now obviously I'm on both of those so I think I can maybe lake a few
more liberties but I don't think this is, someth~g this big is not just an HRA issue and I
don't think it should start out as just an HRA issue.
·
Brad Johnson: I agree with you but the practical process, legally, here is that we have to start
with you.
Mason: Well.
Brad Johnson: You tell us what to do. You can say we appwve it. It looks good. Take it
on. Bring it back if thc city agrees. But until we have the economics done, we can't go
anywhere with it.
Chmiel: We can't take any action on this this evening anyway.
Brad Johnson: We're not asking you to do that.
Chmiel: No. But even the concept approval, we can't give.
Brad Johnson: We understand that. I just said that, all I'm saying is I agree and you said the
process is this. It looks okay. You don't have to say it looks okay physically. You see that
to me is the Planning Commission's require~ts. Alright. But you can say from an liRA
point it fulfills your needs for the redevelopment of that area. I've been involved in 5
projects down there. We've spent between you and my company and Bloomberg, well over
$150,000.00 with ideas and none of them have come to fruition because we never got the
financing done. And so my.
Chmiel: That's thc number one issue, ri~t there. Was thc financing, h didn't have
anything to do with HRA. Until you have thc financing in place, you can't move on it until
that's done.
Brad Johnson: That involves the HRA. And I'm not saying you can't run it up the flagpole
and bring it down but we can't go much farther than this because we don't know what the
financing, the district, the feeling from the community. Do you want to leave it lilm it is?
We don't hear that from anybody. And we tried community center. We tried a lot of '
different types of things that never really work~ over there and we've atlgnded all the Vision
2002 meetings just to see if we're on the right track. We've adjusted a lot of things in here
ll
Housing and Redevelopment Authority - Sune 23, 1994
to adjust in there because that seems to be the place for community input. And we are
concerned about Planning Commission and City Council but I think what has to happen,
because the HRA is the one that's in power to assist in the financing of something like this,
is that you can say you know whatever you want but, you don't have to approve it. You
have to say, we are in, have feelings, we agree that this, a district could be created and then
we have to go through the whole city process which obviously is much more than this. With
all the drawings that are necessary but this is not a PUD. It's just a redevelopment district.
It's a zone issue. I mean you can go in. It's zoned to do this. And almost technically, if we
didn't increase changing the use, we could do this without permits. All you have to do is
pull a permit on it do a facade. We're not dealing with any changes. We're dealing with
change of use for a movie theater but the community has said that this should be an
entertainment area. It should not be a warehouse and how we handle the process, you know
you guys can tell us on that. We're more than happy to meet with more on a work session
with the Planning Commission and maybe a work session with the Council to explain what
we're thinking about doing. Each will have their own interest. So I have yet to go to any
meeting in the community, I think heard at any level and people say, we've got to do
something with this. And what we're saying fight now is we have a way of doing that. But
we haven't thought the whole thing out.
Gerhardt: Mr. Ch~, Brad. If I hear the HRA correctly on this, and tell me if I'm right
or wrong, but do I hear that you would like to see a presentation similar like this given to
both the Planning Commission and City Council and bring that feedback to you to see if this
is a project that you'd like to proceed with and look at creating a new district. Brad, am I
asking too much of your group to do that lc/nd of thing? And get feedback as a concept type
of review from those two bodies and use that information gathered at those meetings for the
HRA to make a decision and move ahead or not.
Chmiel: I think that's, at least that's what I'm coming from. As well as I think what
Michael is going to speak.
Mason: Yeah. I'll be real honest, I mean just speaking for myself. Yeah, let's do it. But
I'm just one person and this.
Brad Johnson: We have been caught in that situation before. We don't want to be caught in
it.
Mason: Right, exactly. I don't want any of us to get caught in.
Brad Johnson: As a matter of fact, within the presentation we came to this place first but this
is, in my mind, the proper place. Somebody here has to tell us, go do this and we'll do it.
12
Housing and Redevelopment Authority - Stme 23, 1994
Mason: Todd I think, I really agree with Don. I think you really hit on the head. I think
that's an excellent idea.
Chmiel: Yeah, and I give you credit for corning in with something here to show something
other than what's here and I like that idea. But I think where we've got to go with it is to
just exactly as what was said.
Brad Johnson: I'll quote somebody's famous words here. Would you please bring us
something for the south side. If you feel you can do it, we'll act on it and I don't know who
said that but somebody in this room, the brochure said that about it 2 or 3 years ago. It just
said bring us something that you think you can do and what happened is that there's been no
city money invested in these idea~ That was the other rule we adopted a long time ago. We
said let us come now to the city and say this is what we think we can do and we brought
together people that have a need. It's not a disa~cc It's not...what it looks like, we think
we're onto it. I mean I just, we all had this meeting down at St. Anthony Main on a nice
warm afternoon and said gosh, this is a nice place. But you know, it's just we could have
started out with all gables and made it look like, I mean the slreet, the scape could look just
like downtown Chanhassen. We could repeat the downtown. We just don't think that's very
interesting and after what we went through with the Edina Realty building, people telling us
please bring us some different kinds of architecttwe. Let's not make the whole town gray
with gables. We're here guys. We're going to try to change that and it is a part of the
projects that I would say had been dexigned by the commitlees in the town because we just
go listen. And we think we're close. We think with the pedestrian area. Tun, you're one of
the people that are always looking for places to walk to and sit down and all of that can be in
here. ff you visit Canal Park or you visit St. Anthony on the Main, both are very, very
pedestrian friendly. And that's what the commit~ was looking for. That little, even the
little concert you had going out on here, they could be down in the parking lot down there
some, you know there could be a lot of things going on. It could be kind of fun. We threw
some retail to break it up. We've got two major users to help us pay for the dam thing and
the community's always been looking for a movie theater. And we have big spaces to/ill_
Without a doubt, see the movie theater is taking what, 10,000, 20,000 square feet. We've got
almost 60,000 square feec That's an equivalent of almost the size of the, that's without the
restaurant and a lot of the other stuff that's ahv, ady done. That whole complex is 100,000
square feet and it's not easy to redo.
Chmiel: I guess what I'm saying, is showing what's time,, shows me the old town of
Excelsior kind of buildings. Up and down main street. Whether that's acceptable to a lot of
people, you know as far as an older suucmre tlmne there, that's something they got stuck
with. $orrething that they have. And they've ~ it quite well because they put their
parking in back of it which is the main sm~et and parking is out time,. We can't do that
13
Housing and Redevelopment Authority - Sune 23, 1994
unfortunately. But are those structures, the right smactures or the facade change that you're
going to make, is that the right kind of blending as to what you're showing there or should it
be something else? I don't know.
Tim Howell: There are probably 150 different options. There really are and we could be
talking this thing 100 ways. The point was to bring a.
Chmiel: Something.
Tim Howell: No, I hope it's a little more than just something.
Chmiel: Well, not just the word something.
Tim Howell: But something that's exciting, vibrant. A place you'd like to be and the
qualities that you find, that the guys who are redeveloping these downtowns are making a
fortune at is taking the buildings that are interesting buildings because they're interesting
buildings. It's not just because they were there. And turning them into money making
operations and all we're doing is saying, we can do that insty. We're just going to pour
water on it and it will grow E_~ke that. And all of a sudden we have developed a viable
working, money producing part of town that before was the rear end.
Brad Johnson: We've had a number of people come up with...and said wouldn't it be nice if
we had a downtown Excelsior in here. You know they've come to me and said, why can't
we, why do we have to do it this way. Why do we have Byerly's7 Why do we have
Festival? Couldn't we have done it this way7 I know it's obvious why we can't but this is
somewhere inbetween. I think that's really where we're at. The process is, you know if we
can go on an informal basis, up the flagpole and then come back and talk about it, that's safe.
If you have to go up formaily, you may never return. And that's what we're worried about.
So we'd like to just take this, as Truman has said, we can change some of the architecture.
We started out, this was only gables and stuff and we said wait a minute. That's too much of
downtown already. Now if you like, you can pick a town like Baltimore. Do you like, it
could be any town and that's what this will look like. And it's not expensive. I mean if
anything compares to it, no more than you guys stamped, I just figured out, the $1,200.00 per
running foot to remodel Kenny's. On the exterior. Pretty close to that. And we're probably
well within that so it is...
Chmiel: I think direction's been given.
Mason: Yeah, I think.
14
Housing and Redevelopment Authority - 1une 23, 1994
Brad Johnson: Maybe Todd if you could just tell us how we do this. If there's anything we
can improve on our dog and pony show. We didn't get into numbem... We hear this. This is
what we hear.
Mason: Yeah, I think all you people are, this is, it's a real good start. I mean it's nice to see
something.
Brad Johnson: Now we're going to end up designing each of these fronts see. But that will
be kind of fun. This will be...1904 Johnson_
Mason: I like that.
Brad Johnson: The comer stones will be identified with each person on the Council and the
HRA.
Tim Howell: Oh I think we could _~de~init~ly possibly put a walk of the stars.
Mason: This is getting better all the time. Yeah, yeah. Let's go.
Brad Johnson: Well thank you very much. We tried. This has been going on for about 5
months. I'm really doing it because Mr. Ashworth asked me to get together with Mr. Dahlen
because it wasn't going anywhere so we made a fairly good relationship with him and he is
really looking forward to seeing something happen here.
Bohn: It would be nice to see the sign Bowling off that building.
Brad Johnson: One photograph of that and put it down in your lobby along with everything
else.
Mason: Yeah I think the Chan archives woukl be a good place for that one.
Brad $ohnson: Thank you very much. Do you have ~nything to say Russ? I mean he's one
of the guys we have to figure out what w do with.
Russ Pauly: Well I just, you know whe~ Brad mentioned it to me, obviously we're going
through some big changes at Pauly's and this looks a very good deal for both the city and for
myself from my point of view. I think it's going to offer ~g new for that area. We
need to do something with that current building that's ~ That's pretty obvious to
everybody so I'm happy about it. I'm exci~ about the project and I just hope we can work
with the city and get something accornplished.
15
Housing and Redevelopment Authority - June 23, 1994
Bohn: It'd be nice for Pauly's to move over to Pauly Drive.
Russ Pauly: You know I never thought about that...You know that's the only dead end street
in Chanhassen.
Brad Johnson: Thank you very much. I think Truman has done a real good job and it's been
really kind of fun to, we did this in about 7 meetings.
REQUEST FOR SPECIAL A~SESSMENT ASSISTANCE FOR OUTLOT A AND LOT
4, MARKET SQUARE, BLOOMBERG (~OMPANIE~,
Gerhardt: Mr. Chairman, HRA members. At our last HRA meeting, Bloomberg Companies
and Lotus Realty had made a request of the HRA for special assessment assistance on Outlot
A and Lot 4. As you're aware, you have approved the architectural style of both of those lots
for development of the Wendy's and a 10,000 square foot office retail building. The amount
of the specials against these two lots total $111,467.94. The HRA also asked staff to review
their request and from this we've always had the policy that we treat each new business as
they come into the community with our program and so we took that as our basis to review
this development. And from that, using your 2 1/2 years...special assessment protection
program, we were able to calculate that with the $80,000.00 in incentives to market the
property as per the repurchase agreement, you were able to calculate out your development
would create approximately $196,000.00 a year in new taxes based on 2 1/2 years of
percentages. And leaving a remaining of $4,957.00 left over in writing down those specials
and the $80,000.00 in land write down. It's staff's opinion that we do have a right to provide
assistance to this property and that you direct staff to prepare a private redevelopment
agreement. Not with Bloomberg Companies I've been told but with Lotus Realty as the
signature name on the contract. As to the transformers, from meetings with Vernelle and
Brad, I'm going to leave that up to them to make that request. We kind of went back and
forth on it. Staff is neutral on providing any type of recommendation because we didn't
know if they were going to request was formal or not so I'll leave that up to Brad.
Brad Johnson: I think Todd has pretty well expressed our feelings. I think last time he
mentioned that we felt from the very beginning, ff you read the redevelopment agreement it
says that at the time we had a 3 year increment total and one of the things that we negotiated
away from what we're doing is, we couldn't ask in the outlots for things that we, other than
assessments so the $80,000.00 land write down was part of a repurchase agreement and I
think it's a way of handling that on a financial basis for the city. So as we perceive it, we
are receiving the same, a little bit less. No, actually the same as we understood, we were not
to receive anything other than the assessment write downs on the lots 2, 3, 4 and Outlot A.
Similar to what you're probably dealing with in the case of the other Perkins. Ali the types
16
Housing and Redevelopment Authority - Sune 23, 1994
of products that are in the redevelopment are all basi~y going to be the same. That's fairly
standard. As far as the transfers are concerned, I think as part of our discussion with the city
staff is that even though we feel there's a certain amount of inequality there, we have not
figured out how to handle this. If you go over and look at that corner, and given what we
had to go through just to get our building Spl~Xrve~ which it add a $100,000.00 in the
nrchitecun'e you have, not you have but somehow we have stncked in that corner how they, 6
transf~, you know boxes that are not, including the one in front of lite bank, that are not
necessarily atlractive. And they're on the major comer of our cotmnunity. How we handle
that long term is just the problern. Whether the developer should be required to relocate
those. Our opinion is that it's, maybe it's a 50/50 deal but it's ceminly not something we
really want to do. Staff is saying, let's get this thing done and that's where we're at. Our
redevelopment does require us to relocate one of those transl--. But it's just something
that I don't know ff we want to deal with it at this level or not. The inkling I've gotten from
the meetings that we've had is that it's a very tough thing. We're not requesting that here
but I think we should all think nbout it because it doesn't look very good. Forget this'corner.
Just go across the street and look at the main corner. And that's just I think ~g that
everybody has to agree with. You know think about long term. And maybe not have
everybody in accord~ce with it so we're okny with this reque~ We've talked it over with
staff. I think they have juggled everything around to fit the...Any questions?
Bohn: Thank you.
Chmiel: I have a question, and maybe I didn't hear your properly but I think you mentioned
the fact that this is a request that's coming through Bloomberg Companies, which I have no
problem with. The question that I have is, if this is to be contract~ between Lotus rather
than Bloombergs, why would that be? In other words, what I'm asking, you mentioned
something to the fact that if the private redevel~t agr~ment is put together, who's that
going to be with?
Gerhardt: Bloornberg Companies and Lores have.
Chrniel: Who owns that7
Gerhardt: I guess I would rather have.
Chh/cE Yeah, let me ask the question. Who owns the property?
Clayton Johnson: The city.
Brad Johnson: The city.
17
Housing and Redevelopment Authority - June 23, 1994
Chrniel: That's right.
Clayton Johnson: With the option.
Chrniel: We have the option. We're selling it back to Bloombergs. How do we get Lotus
involved in this?
Brad Johnson: We're the developer. In other words it's our, we are the ones that have
proposed Wendy's and we are the ones that have proposed the...
Clayton Johnson: ...I agree, it's not Bloomberg, it's Lotus. I wasn't sure if it was just
unintentional. The development agreement, all of the development agreements, everything
that's gone through the city, Lotus is the developer.
Gerhardt: Brad can explain. You don't own the property?
Brad Johnson: We act as the developer so it will come through us. We'll put some
f'mancing together and form a partnership to own it and we'll own the other property to
Wendy's. The money just, it's just the way we go about doing things.
Clayton Johnson: But that's where the confusion comes about because Bloomberg owns the
option to purchase the land.
Chmiel: That's correct.
Clayton Johnson: And yet that is just incidental.
Chmiel: I don't understand that. Did you check this with Roger?
Gerhardt: No. I mean it's, these agreements have typically been with thc property owner.
But I will verify that.
Chmiel: Yeah, I want clarification on that.
Gerhardt: ...before an agreement is signed. If we can do it with the developer.
Brad Johnson: Actually in the case of Market Square, it was signed with Market Square
Associates, which was the developer. That was us. We put that group together. They have
different names.
18
Housing and Redevelopment Authority - June 23, 1994
Gerhardt: But they owned the building.
Brad Johnson: No. Bloomber§'owned the property.
Clayton Johnson: In order to present, in order to come before the Council and the Planning
Commission, you have to have an interest in the property. In this case, that's Lotus and
Lotus' interest in the property is the purchase ~t they have with Bloomberg who have
an option agreement with the city. So I mean everything at this point has been, I think thc
confusion is that Todd drafted this memo dealt with the fact that we happen to hold the
option but it should be Lotus.
Chmiel: I would like to get clarification on that.
Bohn: So do we need a motion on this?
Chmiel: Well they're looking for a recommendation. My position would be that that
recommendation would be moved with the clarification of checking with our attorney and
making sure that that's a legal issue, or a legal kind of document can basically be done. If
he's in agreement with that, then I guess I wouldn't have any concern. But I do want that
done.
Gerhardt: I'll make sure I make that clear over to the attorney what the roles are and who's
going to own and if we're following the legalese of this process.
Mason: You made a motion, fight?
Chmiel: I would, yeah.
Mason: Okay. I'll second that contingent on what was just said.
Chmiel: And when will we be notified as to what the legal options are on that?
Gcflmrdt: I'd say at our next meeting I can have a memo h thc adninistrative section
clarifying that. I don't sec this as a big issue. Either you can do it or you can't.
Chmiel moved, Mason seconded tlutt the lIRA direct stnff to draft a Private
Redevelopment Agreement with Lotus Renlty and their reqnest for $191,467.94 in special
as to the legality of the agreemenL AH voted in hvor mid the motion canted.
19
Housing and Redevelopment Authority - June 23, 1994
UPDATE ON THE HANUS FACILITY ROOF.
Gerhardt: This item was one our last agenda where the HRA rejected bids for the Hanus
remodeling project. Staff had an opportunity to meet with both Fred Hoisington and Tim
Stefan on the redevelopment of this building. What staff is proposing to do now is play
general contractor and break out each part of the package as individual bid packages. One
being for the sign package and canopies. Two, for painting the building and then three is
kind of a bid alternative. Once the pedestrian bridge is completed, we would then review if
the facade mansard portion of the roof should be completed or not. I think one of the big
reasons in putting that mansard on was to screen HVAC syst~rns and the rooftop units up
there. So the best way to judge that is to wait for the pedestrian bridge to be completed and
we feel that once that bridge is completed later this fall, you can still move ahead and meet
the deadlines on the repurchase with Mr. Kirt. With that staff also feels that we should return
the $50,000.00 Mr. Kirt has given us and complied with your action from 2 months ago.
And until such time that we should have to reroof the building. We have correct~ all the
leaks over in the facility. I met with the tenants here yesterday. They are very happy with
the reconstruction of the parking lot. I don't know if you've bee~ back there but things are
shaping up fairly nicely. We expect pavement to be down in the next 2 weeks. We've got
caught with some additional change orders on that to bring back to you in our July-August
meeting. Just things that you run into with the project They're not big items. We corrected
some things based on the plan that just did not assist with the overall operations and the
parking lot. There was a fairly big pork chop that sat in the front of the auto body's door.
They could barely get a car in and so we think that, that's what engineers call it.
Mason: What's a pork chop?
Gerhardt: ...Jim's kind of been back there.inspecting it and it's pretty obvious. If you just
look at it.
Bohn: If they just made a narrow one where a car could drive along and back in and up.
Right now they back fight into it. It doesn't have to be there.
Gerhardt: So we are making some minor adjustments.
Bob. n: And the car backs out of here and they could just make it like that and you'd have
plenty of room. I don't know why it was done that way.
Gerhardt: With that, I think I'm asking for a motion. It's just put on as an updat~ to look at
the process we're going to go through. If you're in agreement with that, staff will go ahead
2O
Housing and Redevelopment Authority - June 23, 1994
and start putting together sortie signage and painting of the facility. And it's not that much
work for any general conuactor. . ...
Bohn: What's the...
Gerhardt: There was some masonry work that needs to be done to the sides of the tmilding.
Bohn: No, this is back there where the...Is that a retaining wall, is that what it is?
Gerhardt: Yeah. We had that installed. If you remem~ as part of the plan it showed
retaining walls and we u'ied to kind of put some berms back there to land~ it as we drove
on the roadway. And the retaining wall provides us to get more parking in there and then
also retain the berrning in the area. And then you also have to have that clear area behind the
curb because if you bump into the cars and stuff. It would knock out paving and part of the
plant materials that we're going to put in there. So that's what the retaining wails are for.
Bohn: I looked at one that was where the lot where they stored the cars after they towed, it
was one going in there~
Gerhardt: Yes. I think they're done now. You can go back and look.
Bohn: You can't even see from the top of that hill they've put in there now, the top of the, I
haven't been up there because the bulldozers were worL-'ing when I was over there last. Two
days ago. If you can see on top of the roof of the Hanus building.
Gerhardt: I was just checiring the grades so I haven't even looked at where... I was looking
the other direction.
Bohn: Are they going to have to raise themsdvcs 3 more feet then?
Gerhardt: I didn't even check. I'll have to go out there.
Bohn: Yeah that 3, you're going to have to raise that 3 more feet. That hill,
Ge&afdc I don't think so. Mike was going, I called and talked to him today where we're
turning, you had to track in dirt to raise the north elevation to match the south elevation so
the last HRA ~g we approved the change order to haul those materials in and I've asked
Mike to get a survey out there to verify those heights so they match up so we don't have to
bring tracks in on top of Utes and things ~ that. We're thinking ahead.
21
Housing and Redevelopment Authority - June 23, 1994
Chrniel: I like the idea that you're doing this yourself and I think you'll save us some
money. Mason: Are you out there with the shovel too or just?
Gerhardt: Well the guys wanted me to help put the retaining wall in. He wanted to know if
he should move this concrete block and I said you're asking the wrong guy on this one. I
brought Michael...and Charles, they're... I can nm a Bobcat. They should see me on a
Bobcat.
Mason: Well it all sounds good to me.
Bohn: Sounds good to me.
Chmiel: We'll get a package back to us indicating what those bids will come in at?
Gerhardt: Yeah. You would have to approve the bids on that. I would expect August
probably would be the time.
Bohn: We'll go onto new business.
CONSIDER A RI~.QUEST FROM MARKET SOUARE PARTNERSHIP REi}ARDING
ASSISTANCE FOR EXPANSIQN~ FESTIVAL FOODS.
Gerhardt: I don't know if you had an opportunity to read Don's memo but I think at the last
meeting Don was, made a verbal update on Festival's request for assistance and from that, we
have done some things in that area already and assisted in that development to take place and
we have asked HRA's attorney to review what...might be available to continue that assistance
to make everything on an equal playing ground with Byerly's. Staff feels that something will
be worked out and we just wanted to reaffirm that it's the HR intent to provide that
assistance over...
Bohn: Mike, questions?
Mason: No. I feel like I've been here before on this one. And no, I don't have any trouble
with this at all. I certainly I guess with other people, anticipated it. And this has nothing to
do with this request but philosophically I think we need to, at some point consider at what
point does HRA say you know the city's going along pretty well. This might be a program
that we need to really rethink.
Bohn: I thought we went through that once before.
Housing and Redevelopment Authority - lune 23, 1994
Mason: Well, I guess I thinir this is a different case too. I mean no, I don't have any twuble
with this at all. But I do think with this one corning in now, nnd whatever may be with the
future with the south side, I guess I kind of see that as perhaps a done deal too but I think at
some point the HRA does need to give that sorm thought. But no this, I don't have any
~rouble with this.
Gerhardt: Well just to remind everybody that your program now is one where you get an
equal share of any increment and I just wanmi to highlight that if Festival should go in this
year, it's based on 2 1/2 years and if they decided to wait until next year, then it's 2 years.
And it progressively goes down every half year. We may want to discuss that one again at
another meeting and on that policy if you think it's benefici~ to yOU. IS this what We want
to continue to do? Are we seeing enough development? Quality development. Or do you
want to maybe provide more. So you can go either way on that. I will bring that out as a
related discussion with the...you've got other cities that are doing more but. So it's, I don't
think you need to give them more but I don't know, I think you need to be selective.
Brad Johnson: Can I ask one thing?
Chmiel: No.
Brad lohnson: lust a philosophical thing.
Chmiel: No, no.
Brad $ohnson: I just want to point out, one of the things that we did with downtown, this is
where this all came from...is that the city put in a lot of public improvements and they hoped
that the development that was to come there would pay for it versus the city having to pay
for it. So the incentive has been, we'll do the public impmv~ts but we'd better encourage
somebody to buy the land. That's all.
Mason: Oh I agree.
Chmiel: Sure.
Brad Johnson: And none of us objected to the public inxpwvements because we felt that we
would sooner or later build something and it's an encouragement for us to do thi~ In a
couple ways you've ended up owning the property, that was not the plan but that was to help
something else but I think that's the philosophy behind that in the downtown and it's been the
philosophy in the industrial pazk. Is that We've got to get these hnpwvements in but We sure
as hell don't want to have nothing happen there because then you do pay for it.
Housing and Redevelopment Authority - Sune 23, 1994
Chmiel: Yeah, and as we look at this, this will eventually work itself out where I think
Mike's concern is, after the next what, 5 years, there won't be any incentives within this
particular district in itself.
Gerhardt: Well in Brad's case, he is correct. There's no question. You could create another
redevelopment district over there behind the Dinner Theater so you could get another 25 'year
district and maybe a little bit longer. I haven't checked on that one but created over there.
There is enough identification of blight and there's railroad tracks there and things like that.
Chrniel: Yeah, I hope I never see another 25 year one within any district, as far as I'm
concerned.
Gerhardt: Well you can close them out at any time. It's just the mechanism that fits for that.
If you're going to work with commercial, that's your only option is the redevelopment
district. Economic development districts don't allow you providing incentives to commercial
like movie theaters, restaurants and things like that. Redevelopment, you're physically doing
what the law calls for. You're redeveloping an old center and making it retrofit of that area
with something that's appropriate.
Chmieh Okay. Do you need an action on this one as well?
Gerhardt: No. What we will be doing is working with thc Festival Food groups and with
John Dean and getting that financial tool and package together and that should be back on for
your July, if that meets, I _thiuk that's Festival's schedule. To try to be...
Brad Johnson: Yeah, but on their behalf they're going through this mega merger right now.
Chrniel: Before Byerly's opens.
Brad Johnson: It's sort of like having an election.
CONSIDER VOIBING THE CONTRACT wrrH THE MEDICAL ARTS
PARTN.ERSHIP I~GARr~ING SECOND PHASE OF THE MEDICAL ARTS
PROJECT.
Gerhardt: This item I think is just the HRA at our last meeting had asked me to review this
item and I think it was also one to kind of stir up the pot and I thiuk you did that. I got a
few phone calls over it. And I think, I don't think it was the HRA's intent to look to a
different developer on this. I think you were looking for what the, how the agreement laid
out and the terms of that agreement and I think the resolution attached laid that out. Staff
Housing and Redevelopment Authority - Sune 23, 1994
had an opportunity to meet with and talk about this with the cummt developer. Medical Arts
Phase II Partnership I think is thc term. And from that staff is, we'd like thc next 30 days to
meet with that group, nnd start d/samson, about renegotiating that private redevelopment
agreement. To hrin8 it into today's market. To set some new time tables on when they
might start construction on it. Discuss you know some of the specials on the si~ and the
purchase price and things like that. Nrom thai, from my discussions with the partnership and
it's members, they felt very cornfonable with sitting down and talking about this. Staff
would look to the HRA tonight to direct staff to renegotiate that contract with the pa~mership
and try to come to tenm within the next 30 days. If we don't seem to be working tim way,
then we'll have to look at other avenues and we will provide those at our next meeting. But I
feel very confident that we can work ~is out in lite next 30 days with the pannerslfip.
Bohn: Who owns that prolzaW?
Gerhardt~ We do. We have an agreement with the parm~ to reconvey that. I think
there's been con~ons on both sides. There were times when Bernie was on the site nnd
they were getting prepared to develop it and it's tough to do that when you have a business
opera~g there and telling people well, there could be this building... So it's difftoflt from
their avenue to do that and then we were also supposed to build a pm-lr~g lot to serve their
needs and put the driveway access in but we were reluctant to do that because to put in a
driveway access and build a building and then just tear it aH up anyway. So from that we
both agreed that we'd like to have 30 days to sit down and discuss this and see what
alternatives we can come up with and then present those back to you at our next meeting.
That's my thoughts of what my conversations were with Brad, Ken Talley and Bob CopelaniL
Brad and Bob Copeland are here and I'd like to open it up to them ff they feel like they
would like to talk about it...
Brad Johnson: I always like to say something but I am kind of exciuxl. We've been working
with, we've always thought of this as the place when you live in thc commm~ity, for the
clinic to be, and for them to expand and stay in downlown Chanha~en. One of the
problems in the n-,edical world, so we just kind of reserved the sim for them. They have
reached the point that they do need to expnnd nnd we made a propo~ a yea/ago. ~
move that slowly. You can check with Mr. Danvers but we met with them and just by
to review their needs for space. And what we've been trying to do, they're an excellent
tenant. It's an excellent use for over in that area and we were comfortable...to needing, 10,
15, 20,000 square feet there. It's just that the medical community is not making any clenr
decisions, believe me.
Chmiel: I know why.
Housing and Redevelopment Authority - Sune 23, 1994
Brad Johnson: And so we did have a meeting with them. Mr. Talley was with me. I think
he walked away feeling comfortable for the first time that we would probably be moving
ahead. The good news is it's been a very succes~ building financially and we can finally
finance a second phase without having to have it 100% leased as we did, or 90% as we did in
the past. Because the bank feels that that's a very...with Market Square and that's why we're
not quick to move ahead with the Edina building...which is to say we all put together
something that worked. So we're kind of excited about that and that part of our discussions,
Todd...I think it's appropriate what you have asked and I think it will be fine.
Bohn: Thank you. Do you need a motion on this?
Gerhardt: ...if you were to make one, it would be one to direct staff to renegotiate the current
private redevelopment contract with the Medical Arts Partnership and bring those back within
the next 30 days for you to consider it.
Chmiel: I'd so move that Mr. Chairman.
Mason: Second.
Chmiel: One other thing. When are we going to, I'd like to give us the 7 days to clean up
that contractors yard there. We talked about it and then nothing's happened. 7 days.
Mason: It's pretty unsightly.
Brad Johnson: Our parking lot? Somebody actually said to us, well no wonder they're going
to go for a redevelopment agreement. The place looks like a mess.
Chmiel: Someth/ng's got to be done with it.
Brad Johnson: This guy didn't have a blue shirt on either.
Chmiel moved, Mason seconded that the HRA direct staff to renegotiate the current
private redevelopment contract with the Medical Arts Partnership for Phase H and
bring it back at the next HRA meeting. Ail voted in favor and the motion carried.
APPROVAL OF BILLS.
Chmiel: You know, every time I see these Todd I get a little excited over item 55264 and
again 55138. When are we going to consummate getting these kinds of billR from these
26
Housing and Redevelopment Authority - June 23, 1994
consultant. I don't know, to me I almost hate to say it but I ~inir it's a bleeding kind of
heart and somewhere I think that bleeding's going to have to stop. . .-'
Gerhardt: There's no question that the vision process has probably extended more than what
we thought but we think.
Chmiel: Well I may have contributed to that.
Gerhardt: ...and people are really taking a big interest in this. I mean we could almost create
another vision commission if you wanted but I'm not Paul Krauss and I don't need to make a
meeting...and I'll send Paul a copy of these minutes.
Mason: Do that will you.
Gerhardt~ And they do really have...and I see this thing wrapping up here with the survey
and the...going out to public. The one good thing is you've got a lot of documen~on to go
back to. Citizens had the oppoxtunity here. The prooess...real positive. When you look at
these dollar amounts...public relations, and...and he applied for that. The newspaper writes
something almost weekly on I would say almost a thank you to that in that you've asked the
citizens to be involved.
Mason: That's true.
Gerhardt: It's a positive and money well spent and you're asking for...You know that and the
Council does so the number of public hearings that you...
Bohn: Can I have a motion on the approval of bills?
Mason moved, Chmiel ~econded to approve the accounts payable for the m~A as
presented. All voted in favor and the motion carried.
HRA PRESENTATIONS:
Bohn: I have one question. The sidewalk going across the ~ tracks and the Highway
part of the upgrading, when is that going to be done along the double lanes coming down by
the new bank and down by Brown's? That's part of the Highway 5 conm'uction.
~t: I guess I can't answer that. I don't know...
27
Housing and Redevelopment Authority - June 23, 1994
Bohn: The sidewalks going across the tracks plus the mad being narrowed to one lane...
Gerhardt: To answer the sidewalks are to be, they should be put in within the next 2 to 3
weeks. I mean the...has been done. The installation has been done. They've staked it.
You'll notice the sidewalks...
(Taping of the meeting ended at this point in the discussion.)
Chmiel moved, Mason seconded to adjourn the meeting. All voted in favor and the
motion carried. The meeting was adjourned.
Submitted by Don Ashworth
Executive Director
Prepared by Nann Opheim
28
CHANHASSEN HOUSING AND
REDEVELOPMENT AUTHORITY
REGULAR MEETING
JULY 21, 1994
Chairman Bohn called the meeting to order at 7:30 p.m. -"
MEMBERS PRESENT; Don Chmiel, Mike Mason, Jim Bohn; Charlie Robbln~ and Gary
Boyle
MEMBERS ABSENT; None.
STAFF PRESENT: Todd Gerhardt, Asst. Executive Director
ELECTION OF OFFICERS:
Bohn: I'd like to nominate ~ Boyle as Chairma~
Mason: I'd second that.
Bohn moved, Mason seconded to appoint Gary Boyle as Chairman of the Housing and
Redevelopment Authority. Ail voted in favor and the motion carried.
Bohn: Can we have a nominee for thc Vice Chaimmn7 Do I have a nomination for Vice
Chairman?
Chmiel: How about Charlie? Charlie's been.
Robbins: Ah nay. Nay. Based on the past conversation, nay.
Chmiel: Okay. How about run?
Boyle: I would second Ynn as Vice Chair.
Mason: Sounds good.
Chmiel moved, Boyle seconded to appoint Jim Bohn as Vice Chairman of the Housing
and Redevelopment Authority. AH voted in favoF and the motion carried.
Bohn: Secretary.
Chmiel: Mike Mason.
Housing and Redevelopment Authority Meeting - July 21, 1994
Boyle: Charlie, would you entertain secretary?
Robbins: Nay.
Boyle: I'll second Mike.
Chmiei moved, Boyle seconded to appoint Mike Mason as Secretary of the Housing and
Redevelopment Authority. All voted in favor and the motion carried.
Bohn: I'll turn over to our new Ch~, Gary Boyle then.
Boyle: Well Todd, do you know anyone here that wishes to address the HRA at this time?
We could sure entertain them.
Gerhardt: They were here but I don't know what happened. No, I do not know of any.
APPROVAL OF MINUTES:
Boyle: Oh, we've got to approve the Minutes. We didn't do that. Do you have the Minutes
to approve?
Gerhardt: Nann was swamped with some additional things. Commission Minutes so at this
time we do not have the Minutes fi'om our last meeting. And we would submit those at our
next HRA.
Boyle: We'll just pass that onto the next meeting then.
UPDATE ON THE CONTRACT WITH THE MEDICAL ART~ LIMITED
PARTNERSHIP REGARDING TI-W. SECOND PHASE OF THE PROJECT.
Gerhardt: If you will remember at our last HRA meeting, staff asked for additional time to
meet with the Medical Arts Limit~ Partnership to discuss the private redevelopment
agreement. It was 6 years since we entered into that agreement and some conversations that I
had with several HRA members thought that we should see ff the second phase was going to
occur. If not, maybe we should relook at the agreement to see if it still existed or not. So
we had a meeting with the Partnership on July 7th and we expressed some concern that we
had with market values and land in the downtown area over the past 6 years. And they were
amenable that they felt that they had gone up. They felt that you know they were held up a
litzle bit too with the Lawn and Sports relocation activities that delayed their project and
trying to get tenants in there. And we acknowledged our responsibility in holding them up.
Housing and Redevelopment Authority Meeting - July 21, 1994
We also expressed to them that we wanted them to be the developers. That the HRA was not
looking at them to go out and find anybody else, so they ~ that. So what we've
come to terms with, with the changes is basically that we will stay with the lin'ms of the
existing agreement as to the option- Suplmrting the option which they have ~ So
they must close on the property one year from the date that they sent a letter to us. In the
last packet there was a letter from the parmership dated June 23, 1994 exercising lhat option.
So they have one year from that date which is June 22, 1995 to close on'this.., one year from
the date of that closing to conslruct a facility. So since June 22nd, so the building would
have to be completed and occupied by lune 22, 1996. And then the HRA also will, in the
existing agreement, agreed to finish off the parking lot over the~. Right now, when Bernie
was there, you remember back when we were finishing off that parking lot, one of the
reasons why we, staff recommended that we try to move Bernie is we wanted to finish the
parking lot and his building was sitting on the land that we needed to t:inish that parking lot.
So right now, ff you see that parking lot back there, it's not comple~ And with the
downtown project that is cun'ently underway, we have...for that parking lot to be compl~
I would expect here in the next couple of weeks you will see curb and gutl~ over there with
the new driveway access put in to f~nish that parking lot off. So we will meet that number 3
of the term of that agreement in the next couple of weeks. To give us some leeway, I put
that date out to January 1, 1995. The current purchase price is $100,250.00 and we changed
that based on some of our holding costs and the specials against the property and what we
felt the best estimate was for the ourent marke~ price for that property up to $139,280.00.
The current assessments over there for the parking lot and West ?Sth Street was $129,030.00.
The HRA and the partnership would then have the HRA atlm'n~ draft a special assessment
agreement with them to reflect these changes and also that they esmhtish a rninlrnum market
value of a half million dollars on the second phase. In lieu of that we will then pick up
$90,000.00 of the outstaoding speciaL.. The last illin, on the back page, is one if they do not
complete this facility by January I of 1995, this year, the purchase price would increase by an
additional $15,000.00. And then ff they do not con~lete the building by January 1, 1996,
then the purchase price would then rise by another $15,000.00. And you're going to say,
well if we happen to close on the property here by August, how are we going to capture that
$15,000.00 if we already got our money. I highlight in there that the partnership would
waive their rights to us special assessing that property $15,000.00. And they agreed to that.
$o we would certify by November of 1995 an assessment of $15,000.00 against the property.
With that staff would recommend that the HRA approve the modifications as lisl~l above and
direct us to develop a private redevelopment agreement to include all those conditions.
Boyle: Do you have a motion? Discussion first?
Chmiel: Yeah. Or you can have your motion, either or.
Boyle: I thought the motion then discussion. We'll take a motion first and then discussion ff
we could.
Chmiel: I would so move.
Mason: Second.
Boyle: Discussion.
Chmiel: Two things that I'd just like to comment on. In putting in the drive and the parking
lot portion that you're talking about, is it wise to do that prior to construction?
Gerhardt: That's a good comment. We discussed that with the partnership and we, that was
one of the conditions that we felt that they were holding. You know as you look at the
agreements and everybody's trying to position themselves, they were saying that we had not
complied with the private redevelopment agreement since we hadn't completed the parking
lot. And our argument was that the reason we haven't completed the parking lot is why
complete a parking lot when you're going to go build a building and t~ar it all up. They said
no. We can build around those improvements. So we are moving ahead and putting the
improvements in and any damage that would occur to those would be their responsibility to
either replace or fix.
Chmiel: And that would be contained within the contract agreement?
Gerhardt: We would get a letter of credit...before they got the building permit.
Boyle: Is the parking to the rear Todd?
Gerhardt: Yes.
Boyle: The same as now. So the addition to the building would be an extension of what's
currently there, is that correct?
Gerhardt: Yeah. If you want to get a visual image of it, if you would take the Medical Arts
Building to the east of there and cut it, the lower level off and take the lower level and just
drop the building completely down is what you'll have there. It's a mirror image of the other
building but only one story.
Bohn: I noticed they were surveying out there yesterday dm'noon.
Gerhardt: Yeah, that's for the curb.
Chmiel: Second comment that I had. I have to commend you on cleaning up that sim. It
looks good. I think that just shows that we're not exempt from it as far as the city's
concerned and I think raking that initiative as you did, I sppreciam it.
Geflmrdt: I think this is anothe~ stop in trying to clean up the si~e. It's still, as you drive
around that corner, it's not the most beaufififl thing so, try to get it finished off and
completing that second phase. And I think the parmer~hip at3pmcim~ the pressure we put on
them because that made the Medical Arts people get off their horse and make a decision too.
If they're §oing to be there or not be there. And so they've made that decision, the
partnership has made me aware that through their negotiations with the Medical Arts they
have agreed to enter inw a lease for that second phase. So I'm expecting in a couple months,
as soon as the plans and specs are done, that fl~y will be calling for a building permit. Is
what they have told me.
Boyle: Any other discussion? Charlie? ~'im? Mike?
Mason: No.
Chmiel moved, Mason seconded that the HRA modify the private Fedevdopnant
agreement to include the condiiiom listed in the staff Feport and direct the HRA
attorney to prepare the necessary docum~ts. All voted in favor and the motion carried.
PRESENTATION BY MICHAEL $C~IiROEDER ON THE PROPOSED ENTRY
MONUMENTS,
Gerhardt~ I guess an intro for Mike here. As you may remember, we had a joint meeting
with the City Council and the HRA to talk about entry monmmnts throughout the downtown
area and asking each of the bodies what areas they felt were i .mlxlrtant to see entry
monuments at. And the conclusion that we came with from these meetings was, is that you
wanmd to see...physical entry monument sign or smmment with a fixture of some sort at
Market Boulevard and West 79th Sue~zt. And tim at Powers and Highway 5 and West 78th
Street, Ouflot B of Target, you wanted to see some type of landscape theme in that area. And
then the third area was the Taco Shop and the Red-E-Mix area and you also wanted to see a
landscape theme in that intersection. Tonight ~ has put some roush drawings together
with alternatives of each of these areas for your review and ~t. And direct/on to Mike
and staff of how you'd like to see that area develop. I think he had some wugh cost
estimates to go along with each of the alternatives...
Michael Schroeder: Okay, like Todd says, just far direction we're laking these around now to
staff. Dave and Todd...and we'll be ~ them up m the City Coundl next week. There are
no firm or concrete ideas but they do build off of ideas that were sm-led with the 2002
process. One of the ideas that was brought out during those ideas which I think was well
received was the idea of making three main entrances to downtown. Powers Boulevard, at
Market Boulevard and then at the AVR/Taco Shop site. And to use the landscape theme as
the dominant character element for each of those and let that character somehow form the
streetscape, at least towards the center of the downtown. So at Powers Boulevard we focused
on a treatment that uses oak trees. At the Market Boulevard focusing on the wetlands and the
ponds, and out at the Taco Shop, on sugar maples. And I have a couple of ideas for each
site. Each site is a little bit different. I'll start out with the Taco Shop site because it's
probably the most complex but it also has some other features that might play along with it.
There's two ideas I'd like to talk about for this site. First of all the site has a configuration
that makes it difficult to use. It's also quite difficult to access. The pedestrian bridge is here.
The Hanus building is here. Dakota Avenue/Highway 101 is over here. And what we
wanted to try to do is somehow get sugar maples at the introduction to Chanhassen at that
point. To focus views back towards the bridge using sugar maples on one side, because of
the restriction of the sight lines. And the second, using crab apples or something lower,
ornamental. But the idea at this point is just a long corridor room at the gateway that will
focus views back towards thc pedestrian bridge. It's kind of a gateway landmark for this part
of the entry experience. But tied with that is what you actually use the space for. It's a
fairly large space. Not accessible but vehicles but very accessible because of thc pedestrian
bridge and it is fled in with the pedestrian passes built along the north leg of TH 101 now.
At some point in thc past there was discussion by at least one of the Council members, about
wanting to do some kind of a commemorative planting at a particular site. Actually the site
that they had identified was the site down there where the fast food areas would be. And as
we thought about it, we thought it might not be a bad idea but that's probably not the right
site. But maybe there's a way that we can use that idea on this site to make it into truly a
park like setting with a natural meaning behind it. It won't be an active use park but maybe
there can be some other meaning. And what we looked at in both of these schemes is two
configurations that develop a parkland setting with maybe a commemorative wolk at least
through marking the events in Chanhassen's history. And I think it's even appropriate now as
you look towards 1997, and I believe that's the 100th, the centennial for Chanhassen. Maybe
this could be a way to top some of those ideas, '96?
Chmiel: I think so, isn't it?
Michael Schroeder: Well we've got to move faster then. But a way to maybe tie some of
the ideas of the centennial back to a park. A natural place that's developed to celebrate that.
Makes it happen with marking two things. It's marking people through dedication of trees
and a grove or along a walkway. Or in lttis case, in a more distinct grove in the center. And
also extracting the wolk at the entrance of Chanhassen as an introduction and a time line so
as you move along the walk there could be plaques or castings or something marking events
that have been significant in the first 100 years of Chanhassen. That's a way to introduce a
specific use to this site that seems to fit it's character. It's not something that anyone would
ever drive to. Other features about this. This plan versus this plan. This one has taken some
measures to protect some of thc sounds and intrusion of cars on Highway 5 by creating some
more definite hedgerows and by pulling the path back farther and creating ~ objects which
tend to shelter people. This one here might be a little more exposed but thc idea is to try to
create a parkland environment as part of the entry smtearm~t. The second is to look at the
Market Boulevard entries, which is the one that was mentioned as the location for some kind
of montur~ntation and we've doveloped a couple different sc~. I'll start out with this
one here. We looked at a way in which we could create a &iffea~nt kind of a feeling right at
the entry by laying off groomed or mowed surfaces against the more natural ~ and then
to wrap the whole site with a oak and maple frame. Playing off of the elements from both
ends and bringing them into the cenmr. This one loc, ai~ the sign on a piece of open land
where it's very close to the roadway. Quite prominent. That's one way of looking at it.
This one looks at it a little differently and has a couple of different ideas in it. One is that
we're going to try and celebrate the wetlands that circle this intersection- We thought about
ways that we could actually enhance that. Right now people, and I think generally people
don't recognize wetlands as a feature of the environment. But they do recognize water bodies
as a feature of the environment. We can expand wetlands at each of the corners, or at these
two opposite comers and still maintain the sense of arrival and celebration of entry. By
expanding the water surface we can ac~_ rally play up the idea of wetlancL In _this case, once
we excavate the comer for a pond, the opporlunities for developing signage at that
intersection become limited. By the way of introducing signage again might be to place
signage in a relationship with the landscape. How you ac~_ rally view the Chanhassen
landscape and it's usually, you view elements across a feature of the land~ Across the
field or across a wetland to an object in the background. So maybe the sign is located at the
back side of the fountain. You view it looking across the pond. Across the pond and to the
signs in the bac~und. So the two ways that the~ might carry through on top, the sign is
located very close. It might have a character that is similar to some of the other
monumentation that we've looked at where it's a very simple base and a symbol of
Chanhassen, the maple leaf placed on top of it. It's relatio~ to the roadway gives it a lot
of prominence. I've shown a sketch here that shows it about 22 feet long and maybe about
12 feet high. It's not an overwhelming element and as we look at it, there are ways to
introduce lighting and other things into this to make it inteav, sting at night. The second idea
where we look across the pond, has the advanlage of being able to tqll in a spot in the
landscape that's kind of missing and opens to the back side of Festival Foods. And does it
with a sign that uses more of a, like the Hollywood sign where it's viewed across the
landscape. Where it's leta~ that spell out Cl~hasaea but they're set into a landscape at the
back side of the pond. And create a strong back drop against the Fe~val Foods site. The
last one that we looked at is the entry that is at Powers Boulevard and this one we talked
about an oak theme. Playing off the oaks that have been saved when Target was developed
and there are also some remnant oaks in the new development up behind Byerly's. But they
can become a powerful element in trying to define the intersection. As you move through the
intersection this way, this whole portion of land kind of drops away. It doesn't provide a
focus. In fact what you see is a very thin strip at the top of the building. What we'd like to
do is use large features of the environment like oaks to try and frame that intersection and
create focus on the intersection instead of at the warehouse buildings and also an area where
we can manipulate the landform to introduce other things that are characteristic of oaks
and...likc shrub roses, to provide some color and other highlights to the intersection. As this
is developed, we would like to be able to stretch it up Powers Boulevard to make the
connection back to the oaks at Target. To make sure that there are view corridors going back
to the Target sign and the front door of Target And also to find ways to introduce oaks inw
the development of the fast food site. And these are characterized in this sketch at the
bottom. Whereas a room that you actually are drawn into and focused in on the other side.
Second part of this is to try and assign cost to this and the cost I think are really have to be
considered at a concept level fight now. We looked at this and there are a lot of elements
that have to play into this. When we try to consider what the potential costs for developing
an entry at any one of these points might be, and the one that will probably strike everyone at
all these sites is the one about earth work. I think that sites like the AVR site has been really
disturbed. In order to create an environment that works like a park, there may be a fair
amount of manipulation of landform in order to make it work well. In order to make it work
as a park and as an entry statement. If we go to the option where we dealt with the
excavation of ponds, there's a cost there. What I tried to do is outline what all of those are
so that we could understand the implications of the concepts as I've illustrated them. And
then see if it's a direction that can be pulled out relating to the positive aspects of any one of
these to the cost that might be t/ed to it.
Boyle: Thank you Mike, very good. Why don't we go back and start at the very beginning
then. At the first one and discuss it. Take one step at a time. Okay, and we're talking about
TH 101 and the AVR site as we come in. TH 101 coming into town. You made a comment
that what has currently been done would require a lot of correction?
Michael Schroeder: Possibly. We don't have, at this point, the current topography so we're
not really sure what the underlying condition of the ground form is. We know what it is
when we approach the bridge and we know now that it falls off quite a bit. There may be, in
order to get things to grow well, some amount of soil corrections that would be necessary.
We have to investigate that a little bit.
Boyle: Is any of this land, and I open this up to anybody. Has any of this land between TH
/5 and the railroad developed? Possible for development? Todd, maybe you know. There's
not much there is it.
Chmiel: No.
Bohn: The biggest problem is you can't get to it.
Gerhardt: Well the big thing with it is, that you're going to have, there's not enough depth to
the land. You're working with, I tried to visualize what you can put back there. I mean
when you take a look at the Taco Shop and the Red-E-Mix, they did not have a lot of
building square footage with them. I meau the Taco Shop was pushing maybe 2,000 square
feet. 2,500 and then the Red-E-Mix itself was in all pwbabiy a total of 5,000. You know
when you talk about building pads of that size, it just, yon just can't fit too much of a
building back there and the b-ilding that you do put back there, you're going to have to put
the parking lots on either side of the building. You know eittmr on the east or the west side
of it so it's going to be real difficult to make a pazking area and building attractive back
along there. But it could be developed. .
Michael Schroeder: I think one of the limim~_fions is really access. You're not going to get
access on Highway 5 and the amount of space available for access along Highway 101 is
quite limited. And would be limited to a right-in, right-out- Which for most uses is pretty
restrictive.
Gerhardt: Yeah, it would have to be a planned destination type of business that would have
to go back there. The one attribute to the site is yon would have unbelievable exposure.
People will know where you are so. And if they can see you, as long as they can find some
way of getting there. I'm sure anybody that would come there would want some type of off
premise sign. Directional sign by the car wash to get them back there.
Boyle: Mike, what have you got to say? Do you pxe/er one over the other or any
comments7
Mason: You know at this point I don't. It's hard far me to visualize this kind of stuff. Just
seeing the drawings like this.
Boyle: Looking at the drawings I ~nd of...
(There was a tape change at this point in the discussion_)
Michael Schroeder: ...frame that's around. And how big this actmflly will get to be, we
don't know. In order to figure that out, we would have to create models and more study
~n~e e e
Boyle: By well groomed we're talking grass.
Michael $chroeder: Caass. Mowed of some kind. Or at least mnmhing that would contain
an elevation or a height. So it might be a shorter mix and a taller mix in the background
transitioning to the...
Chmiel: Would any of these, I always think a nice soft touch in looking at a community is
the flower beds within. Have we thought any about that at all?
Michael Schroeder: We haven't looked at flower beds particularly and one of the reasons
that, and we can look at it more. One of the reasons that I didn't was because this is a 55
mph environment and in order to get enough flowers for people to notice, you would have to
have thousands and then you'd be _m_licing about hiring one person to mow grass. You could
hire another person just to...
Mason: Well you're in charge of...
Chmiel: Well we have a garden club. People who are interested in doing this.
Gerhardt: I think the flower club has got a lot more priorities.
Mason: You're right. That would be a lot of flowers.
Michael Schroeder: ...downtown intersection where people are stopping.
Chmicl: I'm thinking about how we grab more people into the community. If you get a lot
of flowers out there, women absolutely love that. Women control the purse strings and can
bring those purses into the community.
Mason: I hope this isn't on tape. Holy cow. I End of like the idea of the steps from
groomed into the wild flowers into the trees or whatever. That sounds, I'm intrigued. I'm
intrigued by what that could possibly look like.
Boyle: I am too. And that would, we still have the pond on the, on our left.
Michael Sc~oeder: There are elements of these that could be interchangeable. You can
take a sign from this one and introduce it to this one. You could take expanded pond areas
or you can make the groomed area for this one and put it with this one. At this point, they
had assembled ideas in particular ways just to show ideas of design.
Boyle: Do you _think the sign behind the pond is too far away from the highway to be
noticed7
Michael Schroeder: Well, it would have to be large. But at the same time if you make it
large, it has to be subtle because in order to work and the landscape...celebrate the things
we're doing about wetlands and oaks and maples, we don't want something that's over
powering. The thing that I like about this is the view across the pond, is ff you travel up and
down Highway 5, that's how you see downtown Chanhassen. You're looking across fields or
you're looking across wetlands. You never get right up next to it.
10
Mason: Which is kind of neat.
Gerhardt: Mike, can you show the concept of that one where we're looking at the tilted leaf
or the falling leaf?
Michael Schroedcr: If I bring this up closer so it's easier to see.
C, erhardc Oh there it is.
Michael Schroeder: This is the one with the tilted leaf. The one that's on the right over here
where the sign is up close and more manicured environment. This is about a 6 foot pcrsom
This is about the size of thc sign and I've tried to fairly accm-ately represent what it is. It's
not an overwhelmingly large sign but it's ri~t up close to the highway. The one on the other
hand, and this is a little more difficult to rcacL..but the sign is visible through an opening in
trees behind the fountain and it's reading fight across the back but where you would
otherwise be looking at the back of Festival Foods. Tine top line is the line of Fe~val Foods.
And it might be developed in an environment specifically with the back drop of evergreens.
The sign elcments which are really cut out letten moun~l somehow on posts with, in this
case, probably something to bring the grade up above the level of the ~ a little bit. And
in this, we had thought about, if you were to have color, this would be the place to have
color. Massive color right at the base of this sign.
Boyle: Most of these si~s are viewed only on westbound lrat~, fight?
Michael Schroeder: Well actually this one here.
Boyle: Westbound and then craning into town I guess.
Michael $chroeder: Right. Well it would be, ff you were to really try and do this right, with
two signs, you would try to put them at oppo,ing corners, gr~h the grade it doesn't work out
well. This starts to fall away and then we were trying to conserve costs. But it doesn't seem
appropriate to try and put a sign on the opposite side of the highway of downtovn~ This
could be developed so that it reads imm both sides. You'd have Chanhassen on both aides of
this sign. The maple leaf would read the same. Whichever way you're looking at it. I think
we would try and do something, maybe more inlerestng than just a solid cut out of a maple
leaf, like the one behind it. Maybe we'd do something that's nmre of a silhouetle...whcre we
can introduce special lighting effec-'u at night where it's acumlly an outline of a maple leaf
rather than a solid maple leaf.
Chmiel: That would be sort of neat. And using those during the spring of the year and
keeping that leaf as a green leaf and as the fall leav~ start to appel, change that lighting.
ll
Mason: Hey, that would be cool.
Boyle: Sim, would you like to comtr~nt on anything?
Bohn: I like thc sign. I still like thc idea of the light, the sign across the pond. I keep
thinking about vandals. Well I keep thioking vandals on all of them because I can see some
kid hanging up on the H.
Mason: Then we'd have to give him H ff he did that.
Boyle:
input.
Matt, would you like to make any comments? You're welcome if you have some
Matt Ledvina: No, I don't have any comments at this point. I guess I have some preferences
or whatever but we're going to see that in the Planning Commission so.
Boyle: Okay.
Michael Schroeder: I think the point of vandalism is important. All these signs are adding
exposed, potentially unprotected environments and we would have to make sure as we go
forward to develop in a way that are going to resist that. We know they're going to get
vandalized. I think we have to start out with that assumption and create signs that can with
stand a fair amount of things.
Boyle: We'll put an electric fence around it or something.
Mason: Well or just electrocute the sign.
Boyle: I'm kind of leaning more right now, with some modifications, probably to, what do
you call it. The lower, the one on our right. Maybe with stuff, I like the sign on the other
one but...it would be too big for that side. I like the idea of a sign, a smaller sign and having
Chanhassen on both sides. So you're seeing it both ways coming plus a little bit angled as
you're coming in to Market Boulevard. It'd make a nice statement. Yet not obtrusive.
That's my feeling.
Mason: I think I've probably already, the one on the right looks interesting to me. I think
there's, it is kind of the central area and just to have that little green sword if you will,
around that can be kind of cool. I think at some point we need to have a fairly rousing
discussion as to whether we want signs or not.
Boyle: That's a good point.
12
Mason: You know. I mean I don't.
Boyle: I'm more...
Mason: Right And that may be and that's fine. I think even irrespective of the cost, I think
Chanhassen's on the map one way or the other. I mean I flfink we've definitv, fly eslab~ a
name for ourselves in the metro. And I'm not, at this point I'm not saying I'm for or against
the signs but a lot of money and I wonder if that money could be bett~ spent in other areas.
And maybe we do. Again, I'm not saying we don't want the signs. I just think it's
something I'd like all of us to gral~le with a little bit- lust throw that out I guess.
Boyle: That sign in that 25, I mean compared to some of the things we've seen, it ~
me to look at a sign that might be 25, maybe a little bit more it's a full sign. I mean
$25,000.00 kind of seems, gee. That looks good compared to some things.
Mason: Well that sure is true. Yeah.
Michael Schroeder: I think your comments are well taken. I remember that from City
Council as I left here flfinking that it's not the sign itself that's tsking injury, it's the
landscape or the environment that we're trying to shspe inw a design and qult~ a bit more
subtle but once people recognize it, I think it's more nmnorable.
Mason: Yeah. Yeah, interesting.
Boyle: Again, maybe intermingle in some evergreens in that too. Again, one person's
opinion.
Mason: Well I don't think we can, well obviously Chanhassen does stand for sugar maple.
Make no mistake but I agree with what you're saying. From October to April, I think any
color we can get in there I think would be just, I'm all in favor of that. All in favor of that.
Chmiel: Yeah, and I think another thing you're going to have to really look at is placement
of those with sprays of the salt. And whether or not they'll sustain.
Boyle: In this one most of them are kind of back though. It looks like now when you see
how with that shaded area and your lrees are back a ways from
Chrniel: Sprays go a great distance and evergreens are very susceptible to that.
Mason: Yep. No, that's a real good point-
Chmiel: I'm agreeing with your point too though but what setbacks have to be there and how
13
do we do that?
Boyle: Anything else? Can we move to the third one down by Target then. Weat entry.
For future development that's going to go. These buildings, is that the proposed, I don't
remember what all is proposed.
Gerhardt: I must have read your mind but that's what I was just going to say. Perkins and
Taco Bell submitted this week and I think that Mike has got it pretty close to building
locations.
Michael Schroeder: It gets close by the time because I didn't get the plan until after I talked
to you. This building is actually maybe shifted a little further over. This one is in about the
right location. This is actually turned more this way.
Gerhardt: The third one hasn't, it hasn't committed yet. Right now it's just Taco BeLl and
Perkins and the third one hasn't committed but they have put a concept of what they might
think.
Mason: Which is the Perkins and the Taco Bell there?
Gerhardt: The Perkins is the one closest to TH 5 and that would be Taco Bell.
Boyle: The other one looks fairly large. Can you say who's interested?
Gerhardt: It's probably going to probably be a Burger King, something along that line. And
Hardee's. Blockbuster Video. Something of that sort. This plan I don't think does the entire
site justice. I mean it really has, you know it's tough to visualize but there's a lot of green
area around these buildings.
Michael Schroeder: Yeah...I had to do was actually get the ccnxect site plan on here. But it
brings out a point that I'd like to at least address. Is that as we start to develop spaces like
this or we try to carry through a theme, maybe not a lot of cultured plantings but at least a
theme planting, there's no reason why that same theme couldn't be extended through this kind
of development to make it work even better.
Mason: I would really like to see that.
Michael Schroeder: Right now the plan for these two buildings that were submitted, doesn't
do that. I think it has 5 or (5 different kinds of trees on a 3 acre site. Which is nice to have
that many trees but it might be better ff we were to try and make it a part of this entry
monumenL
14
Mason: That makes a lot of sense to me. To connect the two. You know I'll admit to being
a little partial to that corner because I live off Kerber Boulevard and go down Powers
Boulevard frequently. 'But I see this comer as potentially becon~g the ugly corner.
Boyle: It's going to be a difficult one Mike because as you come off TH $, you're looking at
telephone lines.
Mason: I know it. And now I hear, you know no offense to Burger King or Hardee's or
Blockbuster, but I hear those going in there and I'm going well, now we'-re talking ugly with
a capital U. So I really, I mean I think of the Mazket Boulevard into'section and you know,
that doesn't look half bad the way it is right now. I mean it really doem't. I mean it's nice
and wide and open with the little pond there and the AVR site is going to, that's got to rake
care of itself there. I mean I'm concerned about this comer. I m~y an~ So I, boy.
Michael, I liked what you said about incorporating that site plan with the whole deal there.
Boy, that makes a lot of sense to me.
Gerhardt: One of the other things I think Mike should show in here, because this really has
the potential of being Market Boulevard over again because you, the city in it's planning of
West 78th Street and the extension out to the park, is the pond.
Michael Schroeder: On this corner here.
Chmiel: There will be one there.
Mason: Yeah, that's tru~ Yeah.
Gerhardt: That will be pond and landscaping. You won't see the, so you basically have
somewhat the same idea. I mean West 79th Street separa~ anyflfing in there but I just
wanted to make that comment. That you will sec the pond out there.
Boyle: Thc only comer that I think is really a concern here is, it's going to be very difficult
to do, I repeat is the one where the building's on. The Target site. Yes, that's going to be a
tough one.
Bohn: How much land do we have there7
Gerhardt: Well we're selling, they're developing a livJe under 4 acres and we're retaining
almost I think 3 in there.
Mason: On that side?
C~rhardt: All around it.
15
Michael Schroeder: It's all the edges going around this way.
Boyle: We really need a pretty good idea of what we're going to put in there before we start
approving the rest of it because then we can get the builders to compliment what else we're
doing I guess, fight7
Mason: That's an excellent point.
Boyle: Get a pretty good idea. I really don't have answers to that.
Bohn: We should have this done so they can't stop us. Once we've got it in, they can't say
take it out. It's going to affect our building.
Chmiel: Yeah. One of the things that we are the property owners of that parcel, or the last
one and we don't necessarily have to sell it either. We can choose and pick as to who we
really want in there.
Matt Ledvina: Would that be a planned unit development?
Chrnieh No, I don't think so.
Matt Ledvina: Those are...right?
Chmiel: Yeah.
Matt Ledvina: For that area so we could...was most of it a planned unit development?
Mason: I don't recall what the development contract says for Ryan on that. Don, do you7
For that corner.
Chmiel: I'm just trying to think and I don't.
Mason: Yeah, that's something we should look into Matt. Now that's a good point. Because
I think we need leverage on that comer. Clearly.
Oerhardt: This is everything outside of this line is what you're retaining here. Near the
green area. So this is the green area that will go along with it. This is your future
development of that. The County fight-of-way that goes along with it and as to the designs
of the buildings, they've done a fairly good job of laying those out. This being the Perkins
here. I think this kind of matches in. If you've been over in Woodbury, is I think the most
current Perkins. And this is their concept. Now one of the things that Kate and Mike and I
are going to look at is the contours off of Highway 5 as you look on this is a fiat mansard
16
roof, So it's open up above. It's not completely.
Chmiel: Can we dome it?
Gerhardt: Then Taco Bell is almost...mlv~ image of this but smaller in ~ and this is an
example of the one over in Eden Prairie off of 169.
Chmiel: Yeah, that's not too sharp.
Bohn: Can you see the mechanical stuff on top of the roof for both of those?
Oer~t: That's why I said. We're going to have to check tl~ contom and see what we
can make on top of that and that will be a ~ of lhe Planning Commission and Council
They're, as we see it, they're going to have to raise it or enclose it. One of the two.
Michael Schroeder: I would like to add one more thing about the principles that we might
learn about this site and the themes that we're developing there and as a result of one of the
meetings we had, it was actually a discussion we had before we sumed udking about the
problem too with the Planning Commission. And that thewe is still a polential for developing
in a subtle way, a landscaped s~t that would signify entries at other parts of the
Highway 5 corridor. As I started thin~ng about it and Nancy was the one that made the
comment, that maybe we should look at how we can introduce these same kinds of themes at
different sites as they develop. So that the city isn't burdened with the cost but at least them
is some statement that recalls what we're trying to do at Powers Boulevard with oaks for
example. And as I drive down the con'h/or, the first major into'section seems to me to be the
one that says, this is an entry point. And Dell Road on the other end. It's the same kind of
space. I think we might want to consider looking at how those sites, as they're privately
developed, might reinforce what we're doing with the patterns and materiah of the landscape
of the Highway 101 entry and the Powers Boulevard enuy.
Boyle: I ~ink everybody would agree on that.
Gerhardt: We gave Mike a copy of their landscape plan. He has a copy of thac..and would
expect probably a leuer back from you in a couple weeks...recommend a specific species type
for the parking lots and then the overall landscape plan.
Boyle: Direction, I'm not quite sure. I really don't know how ~o d/rect tim except Ix) make
that corner look as nice as possible considefiug what might go in there. I don't know, Mike.
Mason: Well put. Hx it Erda.
Boyle: Jim, would you like to comn~nt?
17
Bohn: Whatever we do, we have to do it pretty quick before they come along and say,
anything we do will block the view of their buildings in there.
Boyle: Well, tough. I mean excuse me. I really don't mean it that way but part of what
we're doing here is to compliment the building maybe is a better word than block the
building. You can't say block the building because you want to comp~t.
Gerhardt: We've never landscaped anything to block it. I mean the I-Ianus building may be
probably the closest but we made sure that we reserve sight lines for signs and things like
that. The screening thing,/f they're going to put a dumpster out there, we're going to put
heavy landscape around that area. You know in concert with their's.
Boyle: It almost has to be done in conjunction I think. Maybe not running ahead first and
putting our's in and then let them come in because then you start tearing in and out. You've
got to do it all at one time, don't you.
Gerhardt: That's why Mike is here. This is why the plans are in front of you. I mean we're
not so worried about Red-E-Mix and Market Boulevard at this time. But these guys, with our
private redevelopment agreement, they need to be in the ground here by this fall.
Boyle: Oh, they're moving that quickly. Has this been to the Planning Commission yet?
Gerhardt: It goes in August sometime I think. In August. And they need to be...falrly
quickly for approval because they need to be opened and occupied by the first of the year to
get the incentives that you have agreed to give them. And they're already looking at us that
you're going to try to delay us and hold this up. We, staff has been working.
Chmiel: Well that's their problem, not our's. I ~ they had that oppommity to come in
much prior to this time frame.
Gerhardt: And that's what I told them.
Chmiel: Yeah. Don't let them pull that stuff on us.
Gerhardt: That's why Mike is here so we can't hold them up saying that we have to design
our landscape plan first before you come in.
Boyle: I think can't you do it all together.
Michael Schroeder: I think ff we plan it together, even ff this doesn't get installed at the
same time, as long as...together, I think we'll be in the game. The comments about visibility
to buildings, I as a landscape architect seeing trees grow. Trees I planted early in my career
18
are still small trees and are not blocking any buildings. Retail developers will always say you
plant the tree, you can't see my building. Well I know that when you build a 5,000 square
foot building, it takes an awful lot of trees to screen it when... And by the time the trees get
Mason: And you know, I'll go back to the comment I ms/e about (~anlmssen a few minu~
ago. I mean Chan~ssen's on the map and these people want to be building here. And
we've gone round and round about that with other'restam'auts and what not that have
developed here and made time and time again say they can't do it and well lo and behold,
they can. And the business is doing well and they like ~ ~ and this, that and the other
thing. So you know, I think they'll get a message fairly loud and clear that it's going to be
done the way Chanha~en wants it done and we're glad to have you here but.
~t: ...we just want to try to get throu~ ~ process and get your comments...
Boyle: Good. Michael, do you need more direction?
Michael Schroeder: No. I'm going to be meeting with the City Council next and continue
meeting with Todd and different staff and maybe with Planning Commi~sion. I don't know if
it will fit on your next meeting but hopefully if not then, another special meeting.
C~rhardt: At least one part of the three I think will have to go in with ~ si~ plan and
Target. And either with the site plan or just before the item ttm the Planning Commission
can at least see what feedback the HRA and City Council will give them this last week. Or
coming wee2,.
Mason: This isn't coming up on Monday's City Council is it?
Gerhardt: Yes.
Mason: Well I'm not going to be here. But Wing isn't going to be either you know. -
C. mflmrdt: I thought he told Kate he was going to fly in.
Chmiel: Well, he wasn't quite sure.
Mason: I thought that was on the 8th he was going to.
Chmiel: Yeah, well one of those two.
Gerhardt: We can, I mean Mike can come out and meet with Dick personally on it too.
We're not looking for, I mean just what you did tonight was pe~ect. That's the dhe~on we
were looking for. Which concept we should be using and including the sign or not includin§
the signs. Maintenance items...
Mason: So there are really no major decisions to be made yet.
Gerhardt: Or Monday night...Dick is going to meet with him maybe 10 or 15 times.
Boyle: Well I thank you very much. Excellent job.
ITY OF
690 COULTER DRIVE · P,O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
FROM:
DATE:
SUBS:
Housing and Redevelopment Authority
Don Ashworth, City Manager
Septembe~ 16, 1994
Update on Senior Housing
On Monday evening, the city council set 5:30
the next meeting date, to review senior
proforma be developed specific to
as prepared by Jim McCombs, proposed re~ rates,
Frank Dunbar. The meeting will also inc~ a
proposed location, and a potential contraS'With
consa'uction manager for the project. HRA ~
additionally asked that we make sum.~t we invite the
the north of the proposed project?~¢ seniors are propo~
liRA/city council members s .taz!~..'~ ~, again, .about 5:30
·
conunencing at 6:00 p.m. <.~...
3, Chanhassen S~nior Center as
the council asked tha~ a
using p~~ vacancy rates
land/building costs as prep~ by
overview of the project itself,
to attend, The city council
to fix coffee and sandwiches for
the official meeting
OITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
FROM:
Housing and Redevelopment Authority
Todd Gerhardt, Asst. City Manager ~'
DATE:
September 16, 1994
SUBS: Proposed Settlement with T. F. James Company
-.. ,- -.;.. ~
This p~st momh you should l~v¢ ~iv~l ~ ~'~om G~ry F~J~, o~ city ~ttot~y,
most r~ccm proposal for yo~ co~sid~'~tiom ::It i~ star's md t~¢ city
recommendation that the proposal is reaso~ie and Would advise that the HRA consider
.;
.,'t" s ...:.:
approval of the settlement agreemeat. ':":'
v .
· .
· ..
Staff will be prepm'e.d to .nsw~r ~n¥ queStioas you may' .l~ave in regards to the propos~
setdement at Thursday night's m ,.~'t~,._. ":'~;...~_
-
.~.
..
~'-"
ATrAQHMENT :""-' ~'
.....2~ -
·:' ~..',..
l. Proposed settlement.
· -.. i.. '.... '..'.~....:.:;'...::';t:!-:.f~Z~27.'c~.~,,~~.~.
.. . . ...,. .
..... ~.--'_'~:'.~,..,. ~- ;<--.-..~.._...-. ,.~, . ....
09:16:94 15:38 ~'812 452 5550 CA.KPBELL I~'UTSOX ~** CK~'. ~ITi' K~LL ~002:029
THIS AGREE~NT is made and entered into this
1994, by and between the Chanhassen Housing and Redevelopment Authority
(heminaf~r 'HP, A") and T. F. ~ames Company, an Iowa corporation (herei,~fter
".Tames").
RECIT.,ML, S
A. In 1992 the City of Chanhassen (herein,fter "City") initiated plans for
Improvement Project 91-3, a project that involved the reconstruction and realignment
of a portion of West 78th Street in downtown Chanhassen. As part of that project, the
City authorized condemmtion of certain parcels of undeveloped property owned and
previously platted by J'ames.
B. Pursuant to an Asreement dat~l May 14, 199~ (hereinafter "the '93
Agreement"), the City and 3'ames agreed that the interests and parcels identified in th~
'9~ Agreement which were to be the subject of a condemnation proceeding would be
transferred to the HKA in return for the payment to James by the ~ of an mount
equal to the City's appraisal of compensation due to .lanes for condemnation of those
interests. The parties fUrther a~reed that they would continue to negotiate final
resolution of the acquisition and compensation issues. A true and correct copy of the
'93 Agreement is marked as l~xtfibit A and is aRached hereto.
C. The reconstruction and realigtm~t of West 78th Street, as it affected the
property owned by lames, included fee title acquisition of most of Lot On~ (1), Block
Two (2), West Villagc Heights Second Addition and permanent easemcnt acquisitions
over parts of Ouflot A and Lot One (1), Block Two (2) and Lots One (1) through
Four (4), Block One (1), all owned by ~ames and all located in West Village Hcigh~
Second Addition.
D. lames had previously platt~ those parcels in West Village Heights
Second Addition and, as part of the platting and subdivision process, and pursuant tn a
Developer's Agreement duly ~ted by the City and lames, had dedicated a strip of
land to the City for the furore realignment of West 78th Street.
E. In its efforts to develop commercial uses on the plat~l property, ~'am~s
had undertaken soil correction efforts and had established soft elevations on tt~
property in anticipation of the realignment of West 78th Strut along the route
dedicated to the City by lames.
F. As part of its efforts to establish commercial uses on the property, lames
had received approval from the City .for a retail shopping center with retail gasolinr
salcs use on one of the parcels affected by T,~.rrrovement Project 92-3. lames incurred
expenses relat~ to the architectural and eagineer~g plans for said ceater.
G. As pan of its Imph~vement Project 92-3. the reali~ of West 78th
Street follows an ali§nmet~ that is different than tb~t alignment dedicated to the City
by lames in tt~ platting and subdivision of West Village Heights Second Addition.
As part of the new Wcat 78th Street re-~!i.~ment, the Ci~ vacated a portion of the
17~7~ -2- _
09,'18,'94 1~:38 ~8~2 452 5550 C.~PBELL I~SON *** CIIAN. ClTl' K~LL ~004~029
platted West 78th Street previously dedicated by 3'ames. Upon vacation by the City,
fee title in that parcel reverted to lames, and lames has taken into consideration the
value of that land in accepting this settlement.
H. As a result of the realignment of West 78th Street and the vacation of a
portion of the previously dedicated and platted land, some of the previously platted
lots in West Village Heights Second Addition do not have frontage on a traveled
roadway even though they had frontage on previously planed West 78th Street.
I. Replatting of a portion of West Village Heights Second Addition would
be appropriate to correct many newly created frontage, access and tax parcel issues.
~'. Also, as a result of the realignment of West 78th Street, the elevation of
the new road and the elevation of the remaining parcels owned by lames was such that
substantial earth work was necessary on some of the remaining lames property.
K. The HRA and lames have negotiated various issues over the past year
and wish to finally resolve all remalr,;nt~ hsues, including those raised by the matters
set forth above.
NOW, THEREFORE, in consideration of the mutual terms, cover~nts and
conditions set forth herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Chanhassen Housing and ,
Redevelopment Authority and T. F. James Company agree as follows:
1. lames will execute and deliver to the HRA thc originals of the Quit
Claim Deed and the Permanent Basement Agreement, copies of which arc marked as
-3-
09.'16~94 15:40 '~'612 452 $~50 CA][PBELL ENUTSON ~.~ CRAN. CITY ItALL ~005/029
F. xhibit B and Exhtbit C resistively axed are atlaehed hereto.
2. The HRA agrees that it will not unduly ~ James in its efforts to
remove from Lots One (1) through Four (4), Block One (1), West Village Heights
Second Addition the excess soil necessary to lower the grade on those lots to more
appropriately conform to the newly constructed West 78th Street.
3. The HRA acknowledges that lames had previously received City
approval for a retail gasoli-~- sales use on Lot One (1), Block Two (2), West Village
Heights Second Addition.
4. The HRA sh~ll pay to James within thirty (30) days of execution of this
Agreement the sum of One Hundred Thirty-six Thousand One Hundred Seventy-eight
and No/100 ($11~6,178.00) Dollars and ~all assume respons~ility for payment of the
balance of special assessments levied on Lots One (1) through Three (~), Block One
(I), West Village Heights Second Addition, i.uehsive, and those special assessments
~at are pending but not levied, if any, that are the result of Improvement Project 92-3
for the realignment of West 78th Street. Th~ .total mount of the special assessments
assumed is approximately $194,600.00.
5. lames, for itself and its successors in interest to Lots One (1) ttmmgh
Four (4), Block One (1), West ~rillage Heights Second Addi~ agrees not to seek,-
request or apply for any public fum~teial ~sslstan~ in eoqjunction with the ownership
or development of Lots One (1) throu~ Four (4), Block On~ (1), West Village
Heights Second Addition or the operation of any improvement theizon.
09:16:94 15:40 '~612 452 5550
CAifPBELL KNUT$0N .+-*.+ CI~N. ClTI' HALL
006/029
6. This A§reemen~ shall be interpreted and enforced in ~",cordance with the
laws of the Stat~ of Minnesota and shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties hereto.
T. F. lAMES COMPANY
By:.
Charles Wm. James
Its Vice President
CHANHASSEN HOUSING AND
KEDEVELOPMENT AUTHOKtTY
By:_
'F
D~ Ashworth
Its Executive Director
By:_
Oa~y Boyl~ -
Its Chairperson
15:41 'g~$1~ 452 $550 CAHPBEI.,LEA~SO~
09~16~94
· ·
007/029
AGREEMENT
This Agreement made and entered into this ~ day of
_. ~I~%/'' , 199~, by and between the City of Chanhassen
and T.F. Ja~es Company (hereinafter referred to as "Owner"),
WITNESBET~:
The City is proposing the construction of Improvement
/~roJect No. 92-3, which involves the reconstruction of West 78th
Street. The City intends,, through its condemnation authority, to
acquire various property interests from the owner over portions
of the Owner's property described as follows:
See Exhibit "A" attached
In the spirit of cooperation between the parties, with the
intent of expediting the construction of the project, the City-
has requested and the Owner has agreed to convey to the City the
property interests described on the attached Exhibit A. The City
has agreed to continue to negotiate with the Owner =o reach final
agreement, on the total compensation to be paid to the Owner for
the interests conveyed herein.
NOW, THER~.FORE, the undersigned, as Owner of the above
described property, in partial consideration of monies to be
received and other valuable consideration, hereby grants unto the
city of Chanhassen and its agents, the property interests as
described on Exhibit A, prior to final negotiation of the amount
tO be paid for the acquisition of the interests described on
Exhibit A. The undersigned does not waive any claims it may have
arising out of the above-mentioned negotiations and reserves any
end all claims it may have against the City arising out of the
City's use and occupancy of parcels described on Exhibit A.
It is agreed that In consideration for the Owner's execution
of this Agreement, the City will pay to the Owner its approved
appraised value which would have* b~en required to be paid to the
Owner under Minnesota's "quick take" law which is set forth at
M.S.A. 117.042. This approved a~praised value will be given by
check to the Owner on the date hereof. The Owner and the City
will continue to negotiate the total compensation to be paid to
the owner for the interests conveyed herein. Further, is agreed
that the owner, at its &leotion, ~ay notify the City ~hat it no
longer wishes to negotiate the damages to be paid as a
consequence of this acquisition and that thirty (30) days from
the date tha~ said notification is given to the City, in writing,
the City shall file its Petition in' Con~emnation pursuant to
Chapter 117 of Minnesota Statutes for the purposes of determining
the damages as ts provided .by that Statute. Final documents, in
recordable form, will be executed by the Owner upon completion of
the negotiations' of total compensation. If final compensation is
not negotiated between the parties, the condemnation proceeding
that follows shall ooDstitute the final conveyance documents.
_
09,'16.'94 15:41 9612 452 5550 CA~PBE~.L KAI~SON +.~ CtL~, CITY KtLL ~008,'029
It is further agreed that the City intends to vacate a
portion of future West 78th Street as dedicated in the plat of
W~ST VILLAGE ~IGHTS 2ND ADDITION, that portion to be vacated is
substantially as described in the proposed city resolution which
is attached hereto as ~xhibit B.
For purposes of the potential condemnation proceeding
anticipated herein, the "date of taking" shall be the date of the
execution of this document by T.F. James Company.
In witness whereof, the parties hereto have executed this
Easement Agreement the ~ay and year first above written.
, 1993
STATE OF MINNESOTA )
COUNTY OF ~ )
The foregoing instrument was acknowledged before me this
~,_~.,'_~,n'%- '6f T.F. Jame~ Company,-6n-b~half of sa-i~-
company.
.. Notary
·
THIS INSTRUMENT WAS D~FTED
~PBELL, ~TSON, SC0~ & ~CMS, P.A.
317 Eagandale Office Center
1380 Corporate Center Cu~e
Eagam, ~ 55121 ·
Telephone: (612) 452-5000
GGF
09.'16.'94 15:42 '~612 452 $$50 CA)I~BEI,L [NI..'I'SON -~*-* CEAN. cI'n' ]~J,L ~009,'029
SXHZBIT ~
TO AGRS~MENT
BETWEEN THE CITY OF CHANHABSSN AND T.F.
DATED MAY ~, 1993
JAMES COMPANY
Permanent easements for roadway, utility and trailway
purposes over, under, across and through the following described
parcels:
Ocelot A, WEST VILL%GE HEIGHTS 2ND ADDITION, Carver County,
Minnesota.
and
That part of Lot 1, Block 2, WEST VILLAGE HEIGHTS 2ND ADDITION,
Carver Coumty, Minnesota, which lies within 70 feet either side
of the following described line and its extensions:
Commencing at the northwest corner of said'Lot 1; thence
South 0 degrees 14 minutes 08 seconds West, assumed bearing,
along the west line of said Lot i a distance of 41.87 fee~
to the point of beginning of the line to be described;
thence South 77 degrees 49 minutes 24 seconds East 179.48
feet; thence southeasterly 229.78 feet along a tangential
curve concave to the southwest having a radius of 983.93
feet and a central angle of 13 degrees 22 minutes 50
seconds; thence South 64 degrees 26 minutes 34 seconds East,
tangent to said curve, 181.90 feet; thence southeasterly
along a tangential curve concave to the northeast having a
radius of 924.35 feet to the northeasterly line of said Lot
i and said described line there terminating.
.- The West 13.0 feet of Lot 1, Block 1, WEST VILLAGE HEIGHgS
2ND ADDITION, Carver County, Minnesota, said West 13.0 feet
being as deter~ined by a line ~arallel with the most
westerly line of said Lot i and its Southerly prolongation.
·
' ~
·
That part of Lot 4, Block 1, WEST VILLAGE HEIGHTS 2ND ADDITION,
Carver County, Minnesota, lying southerly of the following
described line and its extensions:
Beginning at the ~ntersection o~ l~ne run parallel wi~h an~
distant 50.0 feet northerly from ~he south line of the
Southwest Quarter of section 11, Township 116, Range 23,
Carver County, Minneso~a with the east line of sal~ Lot 4;
thence North 88 ~agrees 57 minutes 58 seconds West, assume~
09,'16.'fi4 15:42 '~8.1.2 4~2 IS$$0 CMfPBELL l~'[.-"/'S0~' ++.+ ClaN. (::ITt' tL~.LL I~10.1.0,'02fl
bearing, parallel with said south line 220.66 feet; thence
westerly 176.22 feet along a tangential curve concave to the
north having a radius of 11409.16 feet and a central angle
of 0 degrees 53 minutes 06 seconds; thence North 88 degrees
04 minutes 52 seconds West, tangent to said curve, 247.86
feet; thence northwesterly along a tangential curve concave
to the northeast.having a radius of 652.86 feet to the
southwesterly line of said Lot 4 and there terminating.
II.
Fee Title to the following described parcel:
That part of Lot 1, ~lock 2, WEST VILLAGE H~IGHTS 2N~ ADDITION,
Carver County, Minnesota which lies southwesterly of a line run
parallel with and distant 70 feet southwesterly from a line
described as follows:
Commencing at the northwest corner of said Lot 1, thence
south 0 degrees 14 minutes 05 seconds West, assumed bearing,
along the west line of said Lot 1 a distance of 41.87 feet
to the point of beginning of the line to be described;
thence South 77 degrees 49 minutes 24 seconds East 179.48
feet; thence southeasterly 229.78 feet along a tangential
curve concave to the southwest hawing a radius of ~83.93
feet and a central angle of 13 degrees 22 minutes 50
seconds; thence South 64 degrees 26 minutes 34 s~oonds East,
tangent to said curve, 181.90 feet and said described line
there terminating.
Iii.
Temporary construction easements for construction purposes over,
under, across and through the following described parcels:
· .
,
~ARCE L 6A.
A temporary easement for construction purposes over, under,
across and through the East 10.0 feet of the West 23.0 feet of
the North 195.0 feet of Lot 1, Block 1, WEST VILLAGE HEIGHTS 2ND
ADDITION Carver County,~Mlnnesota.
Said temporary easement to expire December 31, 1994.
PARe __TA
A temporary easement for construction purposem over, under,
across and through part of the following describe~ property:
Lot 4, Block 1~ WEST VILLAGE HEIGHTS 2ND ADDITION,
Carver County, Minnesota
09,'16,'94 15:43 ~'$12 452 5550 ~EI~KNIYI'SON ~** CHAN. CITI'HALL
Said temporary easement being the South 20.0 feet of the ~ast
590.0 feet of said Lot 4.
Together w~th a temporary easement for construction purposes
over, under, acruss and through the North 10.0 feet of the South
30.0 feet of the West 30.0 feet of the East 55.0 feet of said Lot
4.
Together with a temporary easement for construct/on purposes
over, under, across and through the North 30.0 feet of the South
50.0 feet of the West 50.0 feet of the East 2?0.0 feet of said
Lot 4.
Together vith a temporary easement for construction purposes
over, under, across and through the North 10.0 feet of the South
30.0 feet of the West 45.0 feet of the'~ast 435.0 feet of said
Lot 4.
Together with a temporary easement £or construction purposes
over, under, across and through the North 30.0 feet of the South
S0.0 feet of the West 45.0 fee~ of the East 540.0 feet of said
Lot 4.
Together with a temporary easement for construction purposes
over, under, across and through that part of the southerly and
southwesterly 35.0 feet of said Lo= 4 lying westerly of the East
590.0 fee= thereof.
Together with a temporary easement for construction purposes
over, under, across and through the North 20.0 feet of the South
55.0 feet of the West 55.0 feet of the East 710.0 feet of said
Lot 4.
Said temporary easements to ex, ire December 31, 1994.
09/16/94 15:44 ~'$12 452 5550 CA.%fPBELL IL%%'T$01~ ~..,, CHt'~'. CITY K~LL ~]012.'029
BETWEEN THE CITY OF UHAN~A$~EN AND T.~"- u.,~,.'~ ~,~
· DATED MAY _, 1993
CITY OF CMANHASSEN
CARVER AND H~NNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date Resolution
~otion ~y ...... Seconded By
RESOLUTION VACATING A PORTION OF WEST 78TK STREET
IN CO~.'R~¢TION WIT~ ~ROJEOT NO. 92-3
W~EREAS, pursuant to Minnesota Statutes § 412.$51, the
Chanhassen city Council has =onducte~ a public hearing preceded by
two (2) weeks published and posted notice to consider vacating that
portion of West ?$=h street described as follows:
That part of West 7$th Street, a~ dedicated with the plat of
W~ST VILLAGE HEIGHTS 2ND ADDITION, Carver County, Minnesota,
except ~he west 13 feet thereof;
Which lies northeasterly of a line run parallel with and
distant 70 feet northeasterly from ~he following described
line and its extensions:
Commencing at the northwest corner of Lot 1, Block 2,
WEST VILLAGE HEIGMTS 2ND ADDITION, Carver County,
Minme$ota; thence South 0' 14' 08" West, assumed bearing,
along the west line of said Lot I a distance of 41.87
feet ~o the point of beginning of the line to be
described; thence Sou~h 77" 49' 24" East 179.48 feet;
thence southeasterly 229.78 feet along a tangential curve
concave to the southwest having a radius of 983.93 feet
and a. central angle of 13'.22' 50"; thence South 64' 26'
34" ~ast, tangent to said: curve, 181.90 feet and said
described line there terminating.
and
W~EREAS, it appears that there is no public interest ~o be
served by the continued ~ubll¢ ownership of that portion of the
above described street.
Now, THEREFORE, BE IT RESOLVED by the City Council of ~he city
of Chanhassen:
I ·
That portion of West 78th Street described above is
hereby vacated.
·
The City Clerk is directed to file a certified copy cf
t~is Resolution with the County Auditor and County
Recorder An and for Carver County, Minneso~a.
09:16/94
'd
.
·
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ge~e~te~ or P~r~ner~hip to C~p..,.~tcm Dz' Puz'CMrlhLp
CA~B£LL KN-~'fSON *** CHAN. CITT IL&LL
entered; Certificate oE R&al
Value ( ) f/led ( } ncc required
Ce:t't££ica~e of Real Eecabe Value
NO,
---Coun~y~udtcor
FTAT~ D~ TA~ Z~Ug I~: ~
FOR VALUABLE CON$iDERATIO~q, T. F. JA~I C~N~ANY, an Iowa coxpora=Lon,
Grantor, hereby co=rays and qu~tclaLm~ ~o
A~rA~0aITY ZNAND FOa Ta~ CITT OF C~mASS~N, a lmubll=bc~y, corpora=e in
politic under ~he lawn of =he $~ate of Minnego=a, Gran=ae, real property in.
CERTIFIES THAT GRANTOR IS b'RAW~ OF ANY
D~-SC~IBED
with all heredicamenc$ and appurtenances belongin~ thereto.
AFFIX DEL~ TAX BT~MP IIrAE
James
·
STAT~ OF MINN~A )
) sa.
uomrz'~ oF )
·
The foregoing inscrumenc was ao~le~ ~~ ~ ~hia ~y of , X9~4, ~ ~mrloe ~, J~m, Vice
CNOTAAY STAMP)
Bi
Notary Publta
A~ thim i~mCt-~mmnc mh~uld bm mt to
(~nelvdo nmmo m2d add.urn o£ O~a~me$)s
014/029
09,'18,'94 1~:44 ~812 4~2 ~$$0 CANPBELL I~"[.:'T$0.~ ~..,.., ¢]LL~,'. CITY E.-I. LL [~013,'029
ADOPTED this _ day of
Council of the Cit~ of chanhassen.
, 1993, by the City
ATTEST:
Don
clerk/Manager
Donald J. Chmiel, Mayor--
·
OFF'ICE OF COUNTY RECORDER
STATE OF MINNESOTA
COUNTY OF CARVER
..=
CARVER COUNTY ABSTRACT
& TITLE CO., INC.
201 Chestnut Street North P.O. Box 106 -
--__
¢s12) 4,,,a-ss';'o
09:16:04 15:45 ~]'$12 452 5550 CA]flVB~L I~%~SON *** CHAN, CITI' BALL ~015,'029
EA,_~']~'I'E~ AGRI~BMENT
T. F. 3AM]~ COMPS, au Iowa corporation, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, does
hereby gran~ and convey to the HOUSING AND I~nEVELOPMENT
AI. rrHORIT¥ IN AND FOR THE CITY OF CH~$~, a public body,
corporate in politic under the laws of the $~ate of Minnesota. its successors and
assigns, forever, a l~rmanent easemen~ for public roadway, utility and trailway
purposes over, across, on, under and throu~ tl~ property siu~xl wi~h~ t~ Coun~
of Carver, State of M~n~esota, IcgaUy described on Exhibk A a~ched hereto and
made a part hereof by reference.
Th~ easement rights granted herein to the Housin/and Redevelopment
Authority in and for the City of Chanhassen, its contractors, agents, servants and
assigns, shall include the right to enter upon the premises at all reasonable t/roes to
consu-uct, reconstruct, i~.~pect, repsir and rnainmin the public roadway, utility and
trailway over, across, on, under and 'fln'ough t~ permanent easement premises.
IN TESTIMONY WHEREOF, the parties hereto have signed fids Agreement this
day of . _ , .1994.
GRANTOR:
T. F. ~AMES COlViP~
By:
Chiles Wm.--~axnes
Its Vice President
C.~PBELL ~'"~1'/'$0.%' -~.,.+ CRA.~,'. ClTi' HALL
~ 016,'029
STATE OF MINNESOTA
COUNTY OF
The foregoing instrument was acknowledged before me this day of
_, 1994, by Charles Wm. Yames, Vice President of T, F..tames
[~on~par~,, an Iowa corporation, on b~half of the corporation.
Notary Public;
DRAFrI~D BY:
Campbell, Knutson, Scott & Fuchs, P.A.
3 i7 Bagandale Office Center
1380 Corporate Center Curve
Eagan, Minnesota 55121
(612) 452-5000
ooz /cji
-2-
09:15:94 15:46 ~'$12 452 5550 CAMPBELL KNUTSON *** CK~N, CITI'KtLL ~017/029
Pcrmanen~ easements for roadway, utility ~nd traflway purposes over, under, across
and through the following described parc. eh:
PAR~L A
Outlot A, WEST VILLAGE I-~.rOHTS 2ND ADDITION, Carver Coumy,
Minneso~.
and
That part of Lot 1, Block 2, WEST VILLAGE HEIOHT$ 2ND ADDITION~
Carver County, Minnesota which lies within 70 feet either side of tt~ follow/rig
described line and its extensions'
Commencing at the northwest corner of said Lot 1; thence South 0
degrees i4 mirmtes 08 seconds West, assumed ~g, along the west
line of said Lot 1 a distance of 41.87 feet to the point of beginning of the
line to be described; the~.e South 77 degrees 49 minutes 24 seconds East
179.48 feet; thence southeasterly 229.78 feet along a tangential curve
concave ~o ~he southwest having a radius of 983.93 feet and a central
angle of 13 degrees 22 minutes 50 seconds; thence south 64 degrees 26
minutes 34 seconds Bast, t,tugenr to said curve, 181.90 feet; thence
southeasterly along a tangential curve concave to thc northeast having a
radius of 924.35 feet to the noxtheasterly line of said Lot I and said
described line there terminating.
PARCEL
The West 13.0 feet of Lot 1, Block 1, WEST VILLAGE HEIGHTS 2ND
ADDITION, Carver County, Minnesota, said West 13.0 feet being as
determine~ by a line parffi. ~ with the most westrrly line of said Lot 1 and its
Southerly prolongation. '
PARCEL C
That part of Lot 4, Block 1, WF.,ST VILLAGB HBIGHTS 2ND ADDITION,
Carver County, Miunesot~, lying southerly of the following described line and
its extensions:
Beginning at the intersection of line run parcel with ~md distant 50.0
feet northerly from the south line of the Southwest Quarter of section
-3-
09:18:94 1~:47 ~'612 4~2 ~$0 CAIfPBELL I~'[~I'S0N -~-~-~ CHIN'. CITY HiLL [~018.'029
11, Township 116, Range 23, Carver County, Minnesota with the east
line of said Lot 4; thence North 88 degrees 57 minutes 58 seconds West,
assumed bearing, parallel with said south line 220.66 feet; thence
westerly 176.22 feet along a tangential curve concave to the north having
a radius of 11409.16 feet and a central angle of 0 degrees 53 minutes 06
seconds; thence North 88 degrees 04 minutes 52 seconds West, tangent
to said curve, 24'7.86 feet; thence northwesterly along a tangential curve
concave to the northeast having a radius of 6:52.86 feet to the
southwesterly line of said Lot 4 and thee terminating.
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
Housing and Redev~~t Authority
DATE: July 15, 1994
SUBJ:
Mid-Year Update on 1994 Goals
Attached for the HRA's review is the
staff has the NRA review their goals and
Thursday night to review each of the goals~.,~
^Tr^CHMENT
1. HRA goals. ,,;~_~
· : .
Ill)DATE - Sept~unber 15, 1~19~: This imm was tabled at
missing the mid-y~J' Ul~t~
..
..:" -
on the 1994 HRA goal~ Each year
of each. Staff will be prepared
last meeting because it was
'~×77_ 3 "%'.s;-.,
1,
2,
HRA GOALS
Develop overall landscape/beautification plan for the following areas ($anuary -
D~ember):
- Highway #101, West 78th Street, and Highway #5.
- Outlot B Target, Highway #5 and County Road 17 (Powers Boulevard).
- Highway #5 and Great Plain.
- Highway #5 and Market Boulevard.
- Red-E-Mix, Taco Shop and Hanus Area.
Uodate, June 1994:
Trees and shrubs have been planted and within the next several weeks sod
will be completed (Highway 101, West 78th Street and Highway $).
The HRA and Ryan Construction have come to terms with a new Private
Redevelopment Agreement and we are planning on a real estate dosing in
September.
It was also determined that the city council would look at landscaping
alternatives for County 17 (Outlot B, Target), Market Boulevard, and the
old Red.E-Mix and Taco sites. Proposed alternatives will be presented in
August for each of these areas.
West 79th Street · Continue to market the remaining portion of land owned by the
HRA east of the Americana Bank site.(J~uary - December):
Update, June 1994:
Staff has hired Braun Intertec to do soil borings and preliminary engineering
evaluation for a proposed commercial development that might locate on the site.
This work should be completed by early August.
Highway #5 Corridor Project: Complete Corridor Study with the submittal to HRA in
February ($anuary- ~Iune).
Uodate, June 1994:
Final reading of the Highway $ Overlay District is scheduled for the July 11, 1994
city council meeting.
19
Market Square Development: Continue w assist in marketing lots 2, 3, 4, and ouflot
A (January- December)
Uodate. June 1994:
This past April and May the city council and HRA approved the site plan for a
Wendy's and a 10,000 sq. ft. office/retail facility for Lot 4 and Outlot A. Staff is
continuing to look at different options for Lots 2 and 3, one of which is that the
area remain as open space.
o
Incorporate the results of the 'Wision 2002" study commlttcc into a priority list for thc
HRA (lanuary - lune). Include the following projects: new library location, new post
off'~.c site, senior housing, other housing needs, City Center Park, community center,
Pony/Pauly/l~zmus area, redevelopment of the Chanhassm Bowl Frontier Cen~ and
backside of the Dinner Theatr~
Update, June 1994:
Since November 1993, staff has held several public input meetinp both from a
large focus group and also from an Ad Hoc Committee perspective. The next
step is to prepare a newsletter to inform citizens of the purpm~ and process the
city and the lIRA used in creating the "vision" for downtown. Staff anticipates
mailing the newsletter out in the middle of August. ~ completing the
newsletter there will be a follow.up sample survey of the commmfity's opinion
regarding the proposed vision. Finally, in October, staff will present the final
plan to both the city councll and HRA for their review and implementation.
Hanus Facility: Monitor thc construction, of thc landscat~g, and facade
Improvements (January- Deccmb~).
Update~ June 1994:
At their June 23 meeting, the lIRA amended the project to include three separate
bids:
Sign Package (August 1994)
Painting Package (August 1994)
Roof Screen/Re. Roofing (only if the views from the ped~ bridge
warrant the need to screen the ~p).
The parking lot, trail system and landscaping is approximate~ 70% complete
with the rest of the project anticipated to be completed in AugmL
o
Pedestrian Bridge Construction: Including f'malizing design, taking bids for
construction, monitor construction (January - October).
Uodate. ~une 1994:
The HRA and city council approved the final desilpt of the pedestrian bridge this
past May and expect to receive bids in early August with construction starting in
early September.
,
e
Review Alternatives For Moderate Cost Housing for Chanhassen. Continue to work
with Hoisington Koegler Group in surveying local business employee needs
(January- Decembex).
Update. June 1994:
Staff held an informational meeting with the HRA and city council on April 21,
1994 to discuss the needs for senior housing and affordable housing. Staff was
directed to review other projects in the metro area and scheduled another work
session on August 16, 1994.
Demolition of Pony Pauly Pryzmus Building. Leases for these facilities end as of
June 1, 1994 (June- August).
Update~ June 1994:
Staff is in the process of working on relocating the tenants from the Pony Express
and Pryzmus buildings. Staff is still planning for the demolition to occur in
October of 1994. The HRA also agreed to extend the Pauly lease for 18 months
provided Pauly's pay a market rate rent for that facility.
10.
Review options for trail system from downtown following railroad tracks
to Lake Susan Park (January - December):
Update, June 1994:
Staff will request the Park and Recreation Department to review the proposed
alternatives.
21
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
Housing and Redevelopment Authority
FROM:
Todd Gerhardt, Asst. City Manager
DATE:
September 16, 1994
SUBS: Review 1995 HRA Budget
Attached please find a copy of the 1994 ~ ~ §~ As w~ ~art om' rmd~w of tl~
1995 budget, it is important to point out that ~ H ~R~'s primary role is to initiate and fund
capital improvement projects such as the We~ 78th ~ Upgrade, Nm'~h Leg of Highway
101, Hanus Facility remodeling, Pcd~~.~'idge, e~ None of these projects are included
in the HRA's operating budget, but are ~eted thro~ the specific capiufl improvement
funds. ~.~.F ~:
The attached 1994 operational budgo~. ;Outlines the costs ~ with the key personnel aBd
outside services needed to admin!._.S~' each of the capil~ i~provement funds and special
For 1995, the HRA dm~i' Stm to ~ ~fl~out ~ pro~ tl~ would ~ m ~
sponsor Music in-the Pazk '
done for 1995. -:...:. '::..
.......
No specific action is required
f~om our meeting and use it to establish our
at your November meeting for approval
want to see
At~~n~
1. 1994 Budget
FUND #460
TAX INCREMENT DISTRICT NO. I
1994 BUDGET
General_ Comment= This fund is included in the 1994 Budget for notational
purposes only.Th~s operit~ng budget, per state law, is officially adopted
by the Housing and Redevelopment Authority. Should funds be necessary
over and above the tax increments generated within the district, or should
the HRA propose to establish a genera] ]eve1 of taxation/require bonding,
their budget would require actto~ by the City Council. As City personnel
maintain the accounting records for both the HRA as well aa the City
funds, one source document te desired to review overall accounting &ctt-
vtt~es.
Revenues/Expenditures= The Housing and Redevelopment Authority adopts ·
yearly work program which outlines in detail the specific
revenue/expenditure levels proposed for the current year. The HRA'I
*'Revenues, £xpendttures, and Cilh Flow Analysts" describel the specific
revenues/expenditures shown in the budget book and ti hereby adopted by
reference. Generally, Fund 460 acts as the parent fund to control the
numerous activities currently being engaged in bv the HRA. For eximple~
the Housing end Redevelopment Authority has underwritten the expen-
ditures associated with vartoul publlc Improvement prodecte within the
downtown ares end bust·esi park. Each of these prodecta ire a leplrlte
fund tn end of themselves. Each fund requires a specific debt payment
to be paid each year durtng the courll of the next 5-10-15 yelrl.
Recognizing that Fund 460 ti the parent fund, all tax Increments are
receipted 1nrc this master fund. Similarly, all current and future'debt
tranlfers ere shown wtthtn the parent fund as a proposed tranlfer out in
the year necessary to cover the expenditure alloctated wtth that par-
ttcular project. In addttton to maktng payments for debt eervtce fund[,
the parent fund also accounts for payments made as tncenttvel to bull-
ne·lis loc&t~ng w~thtn the community, paytng administrative coats &ilO-
ct·ted wtth the Houstng end Redevelopment Authortty~ and completing
acquisitions of parcels wtthtn the downtown ires tn accordlnct wtth the
Redevelopment Plan. . '
Prior to the formation of Tax Increment Otltrtct No. ~, lell than 1~ of
Chanhassen's valuation wes conYnerctal/tndultrtal. Today, nearly 20~ of
the valuation ts commerctal/tnduatrtll. By the ttme the dtatrtct ce·ill
tt ts anticipated that at lellt 30~ to 40~ of Chanhassin'l total
valuation will be commercial/industrial. Thtl dtverltftcitton wtll
atgntf4can~ly beneft~ Chanha~len'l ibiltty to mee~ future lo0il needl
wh41e no~ crea[~ng a rix burden du~4ng ~he period thlt ~he valuation t1'
be4ng generated.
Expenditures:
Patio·al Services & Co~odttte. represent I proportional shire of the
ii·cote[ed costs of the "key personnel" tnvolved tn ~he general and
financial administration of the fund.
C~ty Manager
Ass't City Manager
Office Manager
Planning Director
Pl&nntng Secretary
50~ P 1 anner 75~
20~ Trealurer 20~
20~ F ina·ce Coordinator 10~
20~ Senior .Planner 25~
-96-
1'
460
460
46O
460
46O
FtJI~ # 460 - HOUSING ~ REDEVELOPI~NT N,rTHORITY
TAX INCR~ DISTRICT ~1
· .
_1993 1993
3012 Tax Inc~mmt RecetF~
~099 TOTAL ~ TAX
3801 I nter~t Eerntnsn
3999 TOTN.. REVE~
TOTAL EXPEI~ I TURE$
REVENUE OVE EX TUmS
TRANSFERS to Debt Servtce
Spl. Asmfc. Reduction
Develop Oont~act
T.I. Bonds of 1983
T.I. Bonds of 1987
T.I. Bonde of 1988(Pktng/comt)
Taxable Bonds of 1988
G.O. ~ of 1988
Q.O. Bomls of 1989
Taxable T.I. Bonds of 1989
G.O. TI Refunding Bond~ 1990A
Taxable T.I. Bonds of 1991
T.I. Bonds of 1992B
T.I. Taxable Bond~ of 1993A
T.I. Bo~lo of 19938
T.I. Refunding Bonds of 1993E
TOTA~ TRANSFERS
4,669,637 4,205,068 4,757,293
4,659°637 4,205,068 :4o757,293
60,000 60,000 60,000
4,729,637 4,265,068 . 4,817,293
282°300 1,382,'600 1,351,050
4,447,337 2,902,468 3,466,243
984,679 0 0
323,183 173,183 53,700
784,641
380,500
8~,238 ~7,257 95', 172
290,850 289,559 277,275
885,542 665,542 635,679
237,334 95,000
0 800,909 838,556
314,559 273,315 271,755
0 140,470 189,875
0 315,763 313,138
0 416.477
[4,327,527 3,765,475 3,382,130
Fund Balm'~c~ Forwlrd
557,934
1,051,300
182,293
Requt~ed Re. erve
677,744
Total Resources over (trder)
Ltabtllt1~
182,293
266,406
0 0 0
-97-
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
FUND # 460 - HOUS I1~ AND REDEVELOPPENT ~ I TY
T~( IK:RB~NT DISTRICT #1
1994
4010
4020
4O3O
4040
4050
Sal~-tee & W~, Te~p.
Oontrtb., Insurance
4099 TOTAL PERSONAL SERVICES
1993 1994
118,000 118,000 126,100
0 5,000 6,000
14,:KK) 14,300 15,600
12,800 12,800 13,000
700 850 1,000
145,800 150,950 ' 161,700
4110 Supplies, Office
4130 Supplies, Progr~n
4299 TOTAL HATER I ALS & SUPPL I ES
1,600 1,600 1,600
2,800 2,800 2,000
4,400 4,400 3,600
43O0
43O2
4310
4320
4340
4360
4370
4376
4380
4420
4510
Fees, ~M'vtce
Fees, Leg~l
Te 1 ephone
Prtnttn~ & Publtehtn~
T~avel &
Pr~tt~al
A~. Fees (~~d)
4599 TOTAL o0hrTRACllJAL SERVICES
4703 Off ice Equtrxnant
4799 TOTAL CAPITAL OUTLAY
30,000 40,000 40,000
6,500 6,500 6,500
500 100 100
1,500 900 1,000
2,500 1,000 ' 1,600
3,500 5,500 4,000
20,000 10,000 10,000
200 100 100
50,000 50,000 50,000
2,000 2,000 2,000
117,100 1.16,500 115,750
15,000 15,000 10,000
i!
15,000 15,000 10,000
DEBT ~
4804
4899
4999
Spect&l Assessment Payman~
TOTAL DEBT SERVICE
TOTAL EXPEND I TURES
0 1,075,750 1,060,000
0 1,075,750 '~,060,000
282,300 1,362,600 1,351,050
-98-
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ADMINISTRATIVE SECTION
TO:
FROM:
DATE:
RE:
Todd Gerhardt
l~red Hoisington
August 18, 1994
Pedestrian Bridge
I received a call from Larry Erickson on 8-17-94 regarding the status ot~ the Pedestrian
Bridge. He thought the delay was atmTbutable to a flaw in the right-away certificate but
found today that MnDot is simply backlogged in ISTEA projects and hasn't completed
its review. As near as he can tell, based on what MnDot is telling us, the project will
be let in late October or early November. Probably constnaction will not occur until
1995.
Since we have all been concerned about the funding commitment, Larry asked the
question and received an answer that funding will in no way be jeopardized by the
delay. It is MnDot's fault that the project is not moving ahead on schedule.
FLH/mm
ITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
August 10, 1994
Mr. Glenn W. Spitzer
Vice-President Corp. Operations and Administration
Katun Corporation
10951 Bush Lake Road
Minneapolis, MN 55438-2391
Re: Proposed Offic~anufacturing Facility
Dear Mr. Spitzer: ...'.i ::.
J
.~..
As per our discussion on August 8, 1994, I hav~ attached the. City of Chanlu~sen Development
Proposal for several proposed sims that would be associated with the conslruction of a 90,000
sq. ft. office/manufacturing facility. Based On the city's development program, the estimated
amount of incentives available to your. client total $509,085 (based on the Economic
Development Authorities three year program - see attachment) and $678,780 (based on the
Redevelopment District - 2 year program - see attac~t). However, this incentive can only
be used for special assessment assistance and ]and write-down.
;- ..
~.:
5-.
The City of Chanhassen's Development Program is a "pay aa you go" program, where you would
be reimbursed for half of three or two full years worth of taxes after proof of payment of taxes
for each year is provided.. I have also attached several l~afion maps for your company to
consider in locating a sim in Chanhassen.
~' .
... . ~..."~ ..... :..._' '.....--.'..;.' .-... ::.
If you have any questions regarding tbJs.izEom~.:p]ea~ do not hesitate to cs, ll me. I would
also like to take this opportunity to thank you for considering the City" Of'Chanhassen for your
development. I look forward w. working with you in the future .... ~--, '''~''
· , ,~. - . . .,. ,~.-,...~' -;-.- ;.:.' .- .
'" '-" "".- '
~Tt~d Gerhardt~~
Assistant City Manager
Enclosures
pc: Don Ashworth, City Manager
August 1994
Development Proposal For
KATUN CORPORATION
To be located within Econ~e Development District Properties
(see attached maps for locations)
Estimated Taxes for 1994
Minimum Market Value:
$5,500,000
- 100.000
5,400,000
~ 4.6%
248,400
+ 3,000
(3qb of the first
$100,000 of ~
Valuation)
251,400
135~
339,39O
(Es~ Tax Capacity
Total Estimat~ Taxes
PROPOSED DEVELOPMENT INCENTIVE
$ 339,390
-169.695
169,695
x ~
$509,085**
Yearly Taxes
Hsc~ Disparities/School Aid*
Total Incentive Per Year
Years
Total Incentive
The attached properties ~re located within mn Bconomic Developtmat Tax Incr~ae~
Financing District. thus, you nmst pay into fiscal disparities and school conu'i~ons.
To be used only for special assessments aud hnd wfite4own.
1997 $169,695
1998 $169,695
1999 $1~).695
Total Incentives $509,085
Other Available Sites Outside the
Redevelopment Tax Increment District. They do
have tax increment available but have less
incentives than the proposed site that I have
highlighted in my letter.
·
I
NTACT: OPU$-PROP~TIEI 141C;. IN, GHr. bL& m. ummr. d,s ~d&'4SSrlP
CITY Gl= CflANHASSEN, MINNESOTA
·
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McGLYNN ROAD
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August 1994
Development Proposal For
KATUN CORPORATION
To be located within a Redevelopment District
(see attached map for location)
Minimum Market Value:
$5,500,000
- lOO,OOQ
5,400,000
x 4.6%
248,400
+ 3,000
(3% of the first
$100,000 of Market
Valuation)
$ 251,400
x, 1~5%
$ 339,390
(Estimated Tax Capacity %)
Total Estimated Taxes
PROPOSED DEVELOPMENT INCENTIVE
$ 339,390 Yearly Taxes
x 2 Years
$678,780** Total Incentive
* To bo used only for special assessments and land write-down.
If built by December 31, 1995, special assessment and write down payments would be made
in the following years:
Estimate~i Pavmen~ S~h~lule
Total Incentives
1997 $ 339,39O
1998 $ 339.390
$ 678,780
Redevelopment of the Bo~ltng ~ley Building,
the 'City' Building and the ~ea~ a~ea of the
Frontie~ Building in T~o Phases:
Phase I - Bowling Alley and City Building
Phase II - Rear of Frontier Building
This proposal focuses on Phase I
Phase I Property/Usq:
Bowling Alley
Filly's
Meeting Rooms
Warehouse
Proposed Use:
Upgraded Bowling Alley
New Pauly's Restauran%
7,000 +/- Re%ail
6-Screen Movie Thea%re
The owners of the property, the HRA,
City officials and the community as a
whole have all identified this area
as having a very high priority for
redevelopment.
Priority has been attached for a number
of reasons, but primarily=
- The area presents an unsightly
first view of the City from
the primary entrance off Highway 5.
- The area is underutilized, resulting
in loss of tax revenue.
This proposal will provide more than an improvement in the
image from Highway 5, it will be an exciting view. The
design captures the warmth and charm of the 'old village'
ambiance. The look will also enhance the success of the
project and it is in keeping with residents' wishes that our
"Downtown" should reflect a recognition of Chanhassen's roots
as a village.
The new Phase I improvements will result in a
projected increase in property taxes
generated in the range of $75,000 - $100,000 per
year.
In addition, the use expands the entertainment area defined
by the Dinner Theatre and provides the community and the CBD
with needed nighttime entertainment opportunities and
activity.
The current status--underdeveloped, minimally maintained as
to part, previously financially stressed as to part--is the
result of a variety of factors, including delays and uncertainty
as a result of plans, only recently abandoned, for converting
a major portion of the area to a community/civic center.
That concept having been abandoned, the owners of the
property, together with the lead tenants and the developer,
have over the past two months developed a plan for a two-phased
development· To date the focus has been on Phase I.
Planning has progressed on several fronts, including:
1. Exterior Design
2. Interior Floor Plan
3. Preliminary Estimates of Costs
4. Lead Tenant Lease Concepts.
5. Ownership and Equity Structure.
Yet to be completed are:
i ·
Discussions with the HRA regarding amount and
structure of assistance which might be made
available to help defray the extraordinary costs
associated with the project.
:
2. City Approval Process.
3. Traditional financing·
A timetable for construction start and projected completion
cannot be firmly established until the above items are
assured. Timing is important to the movie theatre operator
who wants to be open as soon as possible and to Pauly's which
has a deadline for relocating.
PHASE II
!
The Rear Area of the Frontier Building
Exterior design will be a continuation of
the Minnesota Main Street Theme.
The front 80+/- feet of the interior will be
converted to retail and the balance will be
reserved for uses, including storage, which
do not require visibility.
americana
community bank
November 1S, 1993
Housing and Redevelopment Authority
Attn: Todd Gerhardt
Chanhassen, MN SS317
Dear Todd:
Pursuant to the Agreement dated May 28, 1992, between the Chanhassen
Housing and Redevelopment Authority, Robert Dittrich, find Americana
Community Bank, we hereby request the Authority pay S16,110.66 to Americana on
or prior to December 31, 1993. This amount is due as per Section 4.6 (a) fmd (b) of
that agreement and is calculated as follow~:
Total maximum rent guarantee pouible:
4,200 sq. ft. · $~.00/~q. ft.
a) Miles Lord space leased 2-10-93
1,062 · 32S/365 · SS.00
b) Additional Lord space leased 11-1S-93
2S6 · 46/365 · SS.00
- S -4,728.oa
Total -
Todd, we do have a tenant beginning January 1, 1994, for 362 ~quare feet of
Phase II space. We aho have ~everal parties interested in ~lmce on our 2nd floor. I
don°t know yet, if one of the pm-ties becomes a tenant; whether the space involved
will be in the Phase H part or not.
600 west 79th street · chanhassen, mn 55317 · 612-957-9596