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EDA 1994 11 10FII.F. COPY AGENDA HOUSING AND REDEVELOPMENT AUT/to~ -- - THURSDAY, NOVEMBER 10, 1994, $:30 P.M. CHANHASSEN CITY It.AI.L, 690 COULTER DRIVE Dinner will be served between $:00-$:30 p.m_ (~ALL TO ORDER APPROVAL OF ~ 1. Approval of October 20, 1994 Minutes. VISITOR PRESENTATIONS Anyone wishing to address the HRA may do so at this time. OLD BUSINESS 2. Consider approval of the 1995 budget/debt analysis. 3, Consider modifying the redevelopment agreement with. Dean 1ohnson on Oak Ponds Development. 4. Approval of bills. HRA PRESENTATIONS NOTE: This is the last HRA meeting for 1994. Our next meeting will be on January 19, 1995. . CHAN~SS~ HOUSING AND REDEVELOPMENT AUTHORrI'Y REGULAR MEETING OCTOBER 20, 1994 Chairman Boyle called the meeting to order at 7:30 p.m. MEMBERS PRESENT: Gary Boyle, Don Chmiel, and Jim Bohn MEMBER~ ABSENT; Mike Mason and Charlie Robbins STAFF PRESENT; Don Ashworth, Executive Director; and Todd Gerhardt, Asst. Executive Director APPROVAL OF MINI, JTF_~; Chmiel moved, Bohn seconded to approve the Minutes of the Housing and Redevelopment Authority meeting dated September 22, 1994 as presented. All voted in favor and the motion carried. PUBLIC HEARIN(~ REGARDIN~ THE LAND ~ALK QF Q~ B~ RETAIL ADDITION. Gerhardt: Basically what the HRA does is that they under State Statute they do hold public hearings on disposing of property. You,re entered into an agreement with Ryan Construction to sell approximately 137,000 square feet of land due west of the Target parking lot at a price of $4.00 a square foot. That's all I have to add right now. I can answer any questions that the public may have during the public hearing. Boyle: We'll open the public hearing and I will then go back because I missed Visitor Presentations so we'll go back to that immediately after the public hearing. I don~ think, is there any visitors here that wanted to address the HRA? We'll move forward then on that. Therefore the public hearing is open at this point in time. So if there's any comments from the floor. Jim, did you have any comments you'd like to make regarding the sale of the property? Bohn: Todd, when do we. Boyle: Okay, excuse me. I need to close the public hearing before we go to comments up here. Chmiel: Proper procedure is you open it. Anyone for discussion. If no one discusses, then you have to close. Boyle: Okay, so if there's nothing from the floor, we'll close the public hearing. Housing and Redevelopment Authority - October 20, 1994 Chmiel moved, Bohn seconded to close the public hearing. All voted in favor and the motion carded. The public heating was closed. Boyle: Okay, now discussion. Bohn: When can we stipulate the sidewalk in that area? At the time that they come in for planning for their development or when we sell the land. Gerhardt: I think we can deal with that issue when...review portion of it. Tonight, under item number... Bohn: It seems like we are always like one meeting behind what comes to requesting changes made and it's always too late, like we did with Market Square. Gerhardt: No. John and I were discussing this prior to the meeting. He had some issues regarding that and he would be acceptable tonight to considering options...on altering sidewalks or in the styles of the buildings as long as you don't make extensive changes that he has to take to the Planning Commission or City Council... It's difficult in this area trying to keep all three bodies informed of which, what everybody wants so on a sidewalk issue if, you know I think that can be best addressed under the architectural review to make sure that we have a plan that's acceptable by the HRA and how they'd like to see the... Bohn: Okay. Boyle: Don? Chmiel: No, I guess I don't have any specific concern relating to the land sale of that Outlet B for the retail addition. Boyle: Well therefore then I would assume that the HRA's in agreement to go ahead with the sale of Outlot B, Retail Addition to Ryan Construction Company and I would recommend, or I would like to direct staff to establish a closing date Todd, if you could at this time. I assume there's not a motion necessary for the $4.00 because we voted on that last time I believe. Gerhardt: You already approved the purchase agreement and the terms and conditions in there. This is just making the public aware that you are selling the land and that you are establishing... Boyle: Okay. That's moves us onto old business. Housing and Redevelopment Authority - October 20, 1994 CONSIDER MODWYIN~ THE Iil~EVELQPMENT AORg~ WITH RYAN CONSTRUCHQ~ 0~ QUTrOT B, R~AIL ioornQ~, Gerhardt: Thank you Mr. Chairman, HRA members. Included in your packet is a l~er dated September 28th by Thomas Palmquist from Ryan Construction. Mr. Palmquist is present tonight. However, his request is in writing to the lIRA requesting that they modify the private redevelopment agreement between Ryan Construction and the HRA to extend the year's in which Ryan would receive increment from 1996 through 1998 to read 1997 ffu'ough 1999. They're making this request because of delays that have occurred in attempting to close on the property. They can be...and I will agree with them that there has been delays occurring due to a MnDot right-of-way issue that exists over there. There's a small track of land that MnDot has an easement through and we've been working with them diligently for the last 6 months in trying to get them to release that easement. We're down to the last, hopefully the last couple of weeks in getting this issue resolved and so that is just one of the issues. The second one was the Charlie James settlement that you approved at your last HRA meeting and that the City Council approved approximately 2 weeks ago. Those are the two main issues that delayed clearing title on the propel'V/. I would invite Mr. Palmquist to come up here and give his views on it for the record but staff is in-agreement with the request. Boyle: Todd when would you, what would be a feasible closing date as you see it at this point in time? Gerhardt: Well I was hoping, and given direction by our attorney that he would have a Quit Claim Deed next week. However, I did receive a phone call from MnDot and that it is on the final stage of review through their offices. However they are doing an informal appraisal on the property and have not determined if we're going to have to pay for that easement or not. I would hope that we could get some type of conclusion within the next 2 to 3 weeks and getting a Quit Claim from him on this. So as to a closing date, I think the soonest that we could do that would be within 3 weeks. Boyle: Mr. Palmquist? Tom Palmquist: Members of the ~mA...rom Palmquist with Ryan Construction Company. We're in concurrence with the conditions of staff as to the rea.sons they've outlined for, what we've requested for changing the dates of the agreement. I guess one item with respect to the closing date, given the fact that we really won't be able to be~n construction until spring at this point, our preference would be to prepare the necessary doc-mentation and really delay closing until a date in March sometime of 1995. At this point we anticipate being on the site sometime in late March to do our site work. We~ve got approximately 30 days of site work at · Housing and Redevelopment Authority - October 20, 1994 which point we would tum it over to the users and they'd begin their improvements sometime in early April of 1995. Boyle: And the target date of opening then would be where? Somewhere around June 1st or something like that. Tom Palmquist: I would think a little bit later than June 1st. I think the typical construction period would be somewhere near 90 days at a minimum and probably 120 or so days as the outside date from the time that we finish our site work. Boyle: Okay. Don, do you have any questions? Chmiel: No, I don't have any specific questions. I think I had some comments on our, at our Council meeting indicating that there was some time restriction, time delays and in order to really bring this to the forefront, conclusions were such as you read now. Boyle: Okay. Gerhardt: Staff would like to close as soon as we're provided clear title to the property. You know there are some prorated development costs and things like that and if that comes in, then we can work out with Ryan. Chmiel: Yeah, I think that you're right and I don't want the city sitting back holding for additional dollars cost that are involved so whenever closing can take place, I think that'd be upon direction with the city and discussion then with the Ryan to complete. Boyle: I agree with that. And not pursuant to...or the issuing tonight. In other words, if HRA does go along with this modification, that really shouldn't have a bearing on the closing of it. Or possibly it could. Gerhardt: The only thing that I can think of is if they think that we, I mean it wasn't possible for them to get into the ground and put footings in and you know, you can do winter construction. It's expensive in trying to make sure that the ground is thawed and grading and stuff like that. So I guess it...their argument back to us would be one of that, if they would have closed now and we would have provided clear title. However, it really depends on when we can get clear title. We haven't been able to draw... Chmiel: Having cross charge though and cost construction, it shouldn't be any different in March as it would be in any other construction occurring now so I don't see that as any real you know hard discussion back from Ryan. Housing and Redevelopment Authority - October 20, 1994 Gerhardt: Well there is going to be some extensive grading going to have to occur out there and unfortunately we don't allow people to grade after the end of November. You just can't grade frozen ground so they physically probably will not be able to get started on this site until March. Boyle: Okay. So even if the closing date might be delayed somewhat, staff would still recommend approval of this request? Gerhardt: Yes. Boyle: Okay. Therefore I would open it up for a motion that we approve modifying the agreement regarding the years in which Ryan are to receive tax increment from 1996 to 1998, to read 1997 to 1999. Can I have a motion to that effect? Bohn: I'll make the motion. Chmiel: I'll second it. · Bohn moved, Chmiel seconded that the HRA approve the Redevelopment Agreement with Ryan Construction on Ouflot B, Retail Addition to modify the yeah in which tax incmmont is to be received to 1997-1999. All voted in favor and the motion carded. REVIEW ARCHITECTURAL STYLE OF PERKIN~ AND TA~'~) BEI.I- Gerhardt: Mr. Chairman, HRA members. Ifs typically a process of the HRA to see linal plans of...or any development that you provide tax increment. Tonight we have...Ryan's consultants here to give an overview of the plans and the layouts for both Taco Bell and Perkins. John Dietrich: Thank you Todd. Members of the Housing and Redevelopment Authority. John Dietrich from RLK Associates. We have worked with Ryan Construction on the design, layout, engineering and landscape architecture of the Ouflot B development It's to be known as Chanhassen Retail Addition and the site plan that is in front of you here is the culmination of a number of month's work between city staff and our office and Ryan Construction in order to bring this site plan into conformance with the city codes, specifically under the landscape standards for the Target PUD, the impervious ratio densities and dealing with the traffic and pedestrian access to this site. At this time we are looking to have subdivisions prepared so that there would be three lots on the site, which is down from 4 and sometimes discussed as 5 lots when the Target site was first developed in terms of a PUD. So we're real excited about the final layout of this site and the users that are specifically identified at this Housing and Redevelopment Authority - October 20, 1994 time, and that is Perkins and Taco Bell. At this time Perkins is scheduled to be the lower half of the site. Taco Bell in the northeast comer of the site. And a third site is identified as a future restaurant for that parcel. Of those three land users, the max would have two drive thru lanes whereas Perkins would be a sit down restaurant and would occupy the southem side. The Outlet A will also be controlled by the city and that encompasses the site and is identified between the property line around the site in a heavy black line. So it's really like a U shaped configuration that would be on the north,west and south. The idea and plan is that that would be the area for the landscaping to accommodate the gateway presence at Powers Blvd, West 78th Street and State Highway 5 offers the views and vistas into this commercial center and into the downtown corridor through Chanhassen. With that we propose that these developments will work closely with the city as to coordinating the final placement of the landscaping. We anticipate in the springtime there will be some more formalized plans by the city for that landscaping so we'll have a real good handle on exactly where that would be. In terms of some of the elements of the site itself, the proposal will have three outlets divided through it. Signage would consist of one monument sign for each of the three parcels. We anticipate the future one will be in the northeast comer. Taco Bell's is located at the northeast comer and for the Perkins site, it would be down along this road of Target Lane. There will be one pylon sign located on the southwest comer of the Perkins and down in this comer beyond the city's control of Outlet A. With that signage, the pylon sign would have the three identified tenants on that sign and we anticipate they would be lit during business hours only. In terms of' access, all access will come into the site at the southem end of Target Lane, where currently you are able to access Target Lane and come into the Target store. So this will essentially function as a T intersection and allow the traffic, cars to come up through, turn into the Perkins lot in two locations and then access the Taco Bell or access the future restaurant. We are comfortable with that central access. That will allow multiple opportunities to service the two outlets and also have two service lanes for the Perkins site. Taco Bell will have a drive thru and is located on the south side of the property with significant landscaping on the south of that drive thru to assist in the screening of that. We also will have a heavy landscaped band running north and south and then we anticipate there will be some landscaping within the city controlled Outlet A. Perkins will not have a drive thru. The front door will be facing north. Parking all the way around the site and we anticipate their awnings will not be lit, nor will the Taco Bell have any lit or colorful band around the building. We presented cross sections in order to identify the screening elements of the parapet roofs for both the Perkins and the Taco Bell from both West 78th Street and State Highway 5. With the 4 foot parapet roof on both the Perkins and the Taco Bell, we're able to project the sight lines from, I'll take the Section CC for example. If we're on State Highway 5 up at the high point coming across the bridge and looking towards the Perkins, not even taking into consideration the landscaping you would look through. You'd still not be able to see the rooftop equipment with the parapet roof that is up there. We have also drawn cross sections from State Highway 5 looking directly north whereas at both elevations the Housing and Redevelopment Authority - October 20, 1994 sight of the individuals in the cars are below the parapet roof. So the rooftop equipment will be screened. We've also provided a perspective of the site which I think really beans to suggest the entrance qualities that we'll be seeing for this Outlet B area Target in the background. If you're looking from Powers Boulevard is approximately halfway between TH 5 and West 78th Street so we'd be looking through a corridor directly east. With this... Perkins is drawn with the green standing seam metal roof. The yellow canopy awnings which will not have any Perkins on them. It will be strictly yellow. Tile accents and two colors of an EISF which is a stucco dry wood type material which would add a masonry and textural quality to the building. The Taco Bell will have also a stucco EISF finish. Multiple colors. A cream and a brown in color and will have a tile roof. Pm sorry, I'm not an architect. I don't know the property name of the tiling but it will, this perspective identifies the corporate banding that was originally proposed. That banding will not be part of the Taco Bell. It will be of a similar surface of the material that 'are the EISF...that would be going into the Taco Bell. This was drawn to show how we anticipate the landscaping to look. These pine trees are currently out there along Powers Blvd. There has not been any landscaping shown where the future restaurant would be going. That we anticipate here and then more landscaping on the south side. But it was important to maintain a visual entrance and corridor and with that we still have Target in the background. The intent was to have these architectural styles and buildings compatible with the Target and compatible with themselves in the outer. In terms of the buildings themselves, Perkins will have a green standing seam metal roof. Yellow canopy awnings. Tile on all four sides and then individual style letters along the tiled areas. Two colors of the EISF stucco appearance will make up the shell and composition of the Perkins. They gave me all these so you get to see them too. But these are the two colors that are proposed. The buff and the cream. The yellow. Boyle: Is this the same thing? John Dietrich: They're similar. Boyle: A little different. John Dietrich: The yellow is the awning. The green is the standing seam roof and the tile is the accent tiles where the signage would be placed on the building. The awnings will not be lit at night, as one of the conditions of the outlot. They will remain as they are. In terms of the Taco Bell, I again emphasize the color bandings will not be a part of the exterior elevations. It will be stucco and possibly the darker brown color stucco running as a relief right under the pitched roof. The corporate or the signage above the door will remain as well as the corporate logo of the bell. The roof will have a series of these tiles that will be on all four sides. You can pass that around. Housing and Redevelopment Authority - October 20, 1994 Boyle: I don't think that's necessary. Thank you. John Dietrich: With that, the two buildings are situated within the site but make notice... where you cannot place buildings. We have two buried telephone cables. I believe they are the fiber optic cables running through the site on the north. We have a watermain and a sanitary sewer that are running through the site and then they begin to start cutting through the site. So the buildable area within this outlet are very well defined and that was one of the primary factors that said three buildable lots could go in here. In terms of access, we have an existing sidewalk that runs along West 78th Street, along Powers and then the bituminous trail that runs along State Highway 5. We are proposing to have a connection down along Target Lane because we anticipate the majority of the foot traffic would either be coming from west, or from the east, from the downtown area or from the Byerly's or from the Target, which are both located along the east. It's a logical place to have the sidewalk next to the roadway. We would provide an entrance into the Taco Bell and also bring the sidewalk all the way down to Outlet A. That was one of the requests that the Planning Commission had and City Council, that we provide access down to the city controlled property. We will have the sidewalk meander. It will not be a straight shot. We want to maintain the same character that is currently along the west or south side of West 78th Street. And with the landscaping of overstory trees, shrub massings and some undulating berming in there, we feel this will provide very good access to the pedestrians that would be walking along West 78th Street or coming from the east. I think it's important to say that we are within the city identified impervious density ratios. We could go up to a maximum of 70. We are at an impervious surface ratio of 68. We anticipate the future restaurant will be of a comparable size and we have programmed that as 70% impervious and that gives the overall area at 68%. If you take all of Outlet B, which would include the city controlled property, the impervious ratio would go down to a 52% for this entire block. Boyle: John, can I interrupt just for a minute please? John Dietrich: Sure. Boyle: You say that the current undeveloped lot would be, would accommodate probably not something the size of Perkins but something the size of Taco Bell, is that correct? John Dietrich: Yes. Boyle: And the square foot of Taco Bell is? John Dietrich: The square foot of the Taco Bell building. Housing and Redevelopment Authority - October 20, 1994 Chmiel: 1,800. Boyle: 1,8007 Thank you. John Dietrich: In terms of lot size, Perkins' lot is 1.37 acres. Taco Bell is .8 acres and we anticipate the future restaurant to be of .95 acres. So it would be a smaller footprint probably in that range of the square footage of that Taco Bell as placed on the site. Boyle: Thank you. John Dietrich: I believe those are a quick nm through of the site and I'd be happy to answer, or address any questions. Bohn: Do you have any sidewalk going into where the future restaurant would go? John Dietrich: At this time we do not. Not having an actual footprint of that building or this pad will allow for a drive thru. We'd like to, not knowing how that was going to be configured, we did not identify how that sidewalk would be accessed to it. I would be concerned about dropping a sidewalk through the center because of the amount of traffic that would be coming into both of these sites. Bohn: That's why we want a sidewalk there because of the traffic. To keep people off the street. John Dietrich: I understand that James. My concern is, I'm not sure where all the cross traffic is going and if we have this access that would basically serve these. Bohn: That access still doesn't give you an acc~s into Perkins. It leads you up the street. John Dietrich: We do have an opportuni~ to tie this sidewalk into that user when they come forward. Or possible directly off the. Bohn: You have no sidewalk going to Perkins either do you? John Dietrich: We have a sidewalk that comes down. Bohn: To the driveway. John Dietrich: And over. Housing and Redevelopment Authority - October 20, 1994 Bohn: Where does it go? John Dietrich: It comes down to the driveway and then you would have to. Bohn: Walk through the parking lot. John Dietrich: Correct. In terms of providing sidewalk, we found in our site development that people anticipate having sidewalks near the roadways so that they have a logical connection point. We did look at other locations for the sidewalk and felt that this would be the best one to service these lots based on where the anticipated traffic flow would be coming from. Bohn: I'd like to see a sidewalk coming in between Taco Bell and between the future restaurant and running all the way into Perkins. John Dietrich: So if I understand you right James, you would be requesting a sidewalk through the center of the site? Bohn: Right. John Dietrich: I would say if that was to be a desire, then we should not have a sidewalk over on this side. I feel that would be a duplication of accesses and that this area would better serve these two locations. One, Taco Bell and Perkins because we feel most of the traffic would be going out. Bohn: Sure. Because that way the sidewalks at the far end of the parking, the biggest part of the parking lot is between Perkins' building and the street. So they have to go through the whole distance of the parking lot to get to the building from the sidewalk. John Dietrich: They will have to cross the Perkins lot to access the sidewalk, yes. Gerhardt: Just a suggestion to that. Jim and I talked earlier this week and Jim, just for your information. This is their exit. You enter the Taco Bell here and you exit out this way. This is kind of the plan, and I don't know if you can see this dashed line where the potential restaurant would go but I would think that the Fire Marshal is going to demand that they have a paved surface around this building. Maybe another option is that we can come out here on our piece of property and bring the sidewalk somewhere. Bohn: We're going to have the same thing that we did with Target where they say the slope is too high and you can't come in there because Target was supposed to put a sidewalk from 10 Housing and Redevelopment Authority - October 20, 1994 the street into Target, which they didn~ do and tell me that the slope is too high. They can't put the sidewalk in there. But that was agreed to by Ryan at the time Target was built and it was never done. Gerhardt: Well John, what would the elevations from this point to this point be? I would think that you're going to have that pretty much at grade. John Dietrich: We anticipate these pads are about, I'm going off memory. I believe this intersection is going to be about 4 feet higher than this pad in terms of grade elevations. Bohn: And that was the trouble, that's why Target didn't put their sidewalk into their building either. Or Ryan didn't put one into Target either because they said the parking lot was too low from coming off the main street into Target's parking lot. So it was never done, even though it was agreed to. Gerhardt: We're not going to have the slopes that they have on the north side of their building. I mean this won't have. Tom Palmquist: Not even close to that. I would say West 78th' Street.at the comer of Target is a good 8-10 feet above. Bohn: This is by the driveway going into Target. Gerhardt: Your main entrance...and I would agree with you that it's an 8 to 10 foot drop from the area that they're going and then it may even be 6 to 7 foot drop right past the landscape islands. From there to the parking lot. Bohn: I also think it's important, what is the city going to be looking at in term.~ of...how is that land going to be struc~ed in terms of landscaping or public use for access? Where are the signs and monumentation going to be placed? John Dietrich: I would say we would be willing to work with staff to have some access possibly coming off here to service this restaurant. Boyle: It appears to me that Jim is concerned about the fact that somebody is coming off of Powers Blvd on the northwest end. They have to walk all the way around to get access into either Taco Bell or Perkins and I think that's his concern. So we would ask that you just look at the feasibility of accessing that property some other direction than without the individual having to walk all the way around the property. Does that make sense? 11 Housing and Redevelopment Authority - October 20, 1994 Richard Wing: I don't know, is this informal Jim? Boyle: You have the floor. Richard Wing: This has been through Planning and through Council and all Planning's recommendations were brought to Council and I think it went, well. It went through final didn't it? So what you're seeing is really what you've got and I think that if these concerns exist, you've got to get in early to the Planning Commission meetings and then you have to follow this forward through the Planning to the Council so by the time it gets here you're satisfied. Because once it's here it's already been approved and I'm sort of saying, well I don't disagree with you but it's sort of too late. I don't mean, is that too harsh? Boyle: No, I think it's a point well made but then I would ask the question, why is it here? Richard Wing: Then I'm going to sit down because I don't know. I'm not sure. Boyle: Why are we wasting time on it? Nancy Mancino: Dick, I know that this was a concern of the Planning Commission. Ladd Conrad brought this up. One of the things that we gleaned from the Vision 2002 is that we want a balance between pedestrian and motor access and we said balance. And again, so much of downtown has been constructed for the auto entrance into different places and hasn't taken into account the pedestrian and making it more pedestrian friendly. And that was one of the concerns I know that the Planning Commission had too. Instead of having to walk through big parking lots, being able to have access directly to a sidewalk. Via a sidewalk or some other way. Bohn: The City just got an award for being pedestrian friendly and. Nancy Mancino: We Want to continue it. Gerhardt: Well, to answer why this is in front of you. In the private redevelopment agreement it states that you have architectural approval of the buildings...the color of the materials that are being used and some shapes and styles of buildings. So to stay in concert with the contract, they have to get approval from you on the styles. Now it does not lay out the sidewalks and trailway issues but they always seem to be a concern of Jim's so I've always given this the opportunity for Jim to see the site plan as the Planning Commission and City Council had approved it. Now if we go the other route and bring it to you first, then the Planning Commission and City Council get mad because then they think that you have approved the plans and so it's a no win situation for staff on this. So it's one that this is what 12 Housing and Redevelopment Authority - October 20, 1994 the Planning Commission and City Council have approved and as I stated in the be~nning of this, if there's any dramatic changes that you want to make to this plan, you must run it back through Planning Commission and City Council to make them aware of your concerns. Boyle: I think it's very open ended and Richard made the point Jim, that in the future if we want to make that type of structural changes, really need to get on board during the planning. Bohn: Then we have to be aware of it then. Boyle: Okay. Chmiel: Basically then what it should do is the preliminary portions of this should be brought here prior to so that review can take place. Bohn: I think I talked to you once about the sidewalks going down to this development. Remember I talked to you about the sidewalk when that's developed down there. To make sure that we have accessible, the buildings down there are accessible by sidewalk. But Pve never seen any of this before so. Boyle: I think it would be unreasonable at this point to say for that Jim, and excuse me and forgive me if I'm cutting you off but to take this thing all the way back through the sessions, probably would not be the most logical method to go fight now. Or in the best business interest of all parties. Your concern is well taken Pm sure by everybody but. Bohn: But when they put that third restaurant in there, they can take a look at it then. Where the sidewalk's going to go for that third restaurant. Boyle: And I think that might be the time that we attend the Planning Commission meeting. Richard Wing: Gary? Boyle: Yes. Richard Wing: You keep using the word restaurant and Jim, I guess what I see going in that lot isn't a restaurant. It's going to be a fast food with a drive thru that isu't going to be pedestrian friendly or accessible at all so I guess...pedestrian. Jim talked to me about it but this comer I sort of have written off pedestrian wise. When we lost Target I thin]r we lost a major issue on that site. Your sidewalk issue with Target, I thini~ we lost a major issue. 13 Housing and Redevelopment Authority - October 20, 1994 Bohn: There's going to be kids that don't have a drivers license yet that are going to be going down to those restaurants. Richard Wing: That's true. Well that's a good point. Good point. That's a good point. Boyle: Then let's pursue it then when they put in the other one in. See if there's another feasible way to do it. Can I just ask one question? On the entrance where you first come in off of Target Lane, then you take a right. You're going to go to Taco Bell. Is that entrance and exit, and then you come and take a right. Yeah, right there. That is the entrance and exit to Taco Bell? How many feet is it, just out of curiosity? Is that like 12 feet? John Dietrich: The roadway will be 25 feet. And there would be no parking along this main. Boyle: The entrance into Taco Bell right there where your finger is now. John Dietrich: Yeah, there will be no parking. Boyle: Right there. That's 25 feet? John Dietrich: Yes. Boyle: Thank you. Tom Palmquist: Mr. Bohn, to address your concern. As we play out this third lot, we can incorporate some ideas to bring back through Planning as it relates to that sidewalk issue so there are, to give you an option or two that we...address that issue. Bohn: I appreciate that. We own outlot, and we still continue owning Outlot A? Tom Palmquist: Yes. Bohn: No, the one on the comer. Right there. Right where your finger is. Is the City going to own that? Chmiel: It's all Outlot A, which is city property. John Dietrich: Outlot A comes around. It's also this piece and it is this sliver on the north. Bohn: That sidewalk that ends right there. No, right there on the bottom. Right there. Can that be continued on over to our asphalt path coming down along Highway 5? 14 Housing and Redevelopment Authority - October 20, 1994 John Dietrich: I believe the grades would be too steep. Bohn: How about, if it went at an angle over towards, fight there. Yeah, right. Tom Palmquist: There's a mound of dirt, I believe I saw you had the final grade for that exists right here so I guess it would be possible to extend that. I believe it...meander around that mound of dirt. John Dietrich: And I think that was one of the ideas of having this connecting. That would allow access into the site. Boyle: Will all the landscaping of Outlot A and the upkeep then will be city responsibility Chmiel: Yes. If there's anything on the Outlot A, it will be the city's responsibility. And that encompasses to the south, to the west and to the north, which is the Outlot A. John Dietrich: As part of our grading we will be seeding those areas of Outlot A. Boyle: Okay. Any other questions Jim? Bohn: No. Boyle: Don, any questions? Chmiel: No. I guess I don't have any. I've seen this a couple different times and I guess as it is right now, I think ifs the best we can get for what we're looking for so I appreciate some of the changes that they have done within the proposal concerning the aesthetics as to what we really basically have. So I guess I don't have any other questions in regard to it. Tom Palmquist: If I might add one item. I guess I would expect that you should see something come back for staff and planning within the next probably 45 to maybe 75 days. Chmiel: Boston Chicken? Tom Palmquist: At this point that appears to be... Chmiel: No, I heard that in talking with some people here some time ago. Not at the city. Pan of O.J. Simpson's in-laws who own that particular part of the business, from what I understand. 15 Housing and Redevelopment Authority - October 20, 1994 Boyle: Then that building would probably be about the same size as Taco Bell. I mean it would not accommodate anything larger than that. Tom Palmquist: No. The plan is difficult to read from where you're seated but what we've done basically is. Chmiel: Yeah, this really shows it right here. Boyle: Oh okay. 1,800 to 2,000 square feet approximately, yeah. So as Richard says, it's not a sit down restaurant. Ifs strictly only room for a drive up. Chmiel: It could be a sit down as well in there. I'm not sure but that remains to be seen. Tom Palmquist: When you look at the utilities and the easement problems there, it's just real tight. Boyle: That's why I was asking. There didn't look like there was much room. Okay, thank you. Gentlemen, thank you. Todd, I guess in light of our responsibilities of approving architectural styles, do we need a motion? I would assume. Okay. I would like to have a motion then that HRA approve the architectural styles consistent with the rest of the development area as proposed. Chmiel: So moved. Bohn: Second. Chmiel moved, Bolm seconded that the HRA approve the architectural styles consistent with the rest of the development area for Perkins and Taco Bell. All voted in favor and the motion carded. ¢-~ONSmER APPROVAL OF THE 1995 BI~ID(~ET. Gerhardt: Mr. Chairman, HR members. At our last meeting staff handed out the 1995 budget in hopes that you would have the opportunity this past month to review the numbers and the commentary that goes along with the budget. You continue to see increases in your revenues from the development that have occurred this past couple years. We expect to see some additional increases again next year of about 10%-15% with Target coming on and then the following years with Byerly*s coming on. So it's safe to say that you will continue to see 15% increases in your revenues in the next couple of years. As to the debt service, you continue to have more than enough money to meet your obligations in that area. The second 16 Housing and Rcd0v¢lopmcnt Authority - October 20, 1994 page then shows the bonds that you sold since 1988 and'the payments that are made on those and then the revenues are shown at about $5,150,000.00 is the projections that we'll see in 1995 compared to the $4,757,000.00 that you see next year. With that the overall budget itself, we continue to, would support the February Festival and 4th of July picnic. There is money in there. If they should happen to want to do the...this year, Todd Hoffman will be meeting with Rotary members or other clubs that...put that on and so there is money in there. if those conversations come to...and somebody wants to take on. There is money in there for two more sets of banners, spring and summer. And also February Festival fireworks. Overall dramatic changes in the '94 budget. The thing that will stick out are fees or services. In that area. Substantial amount of changes in that area occurred due to the Vision process which took substantially more time than what staff had anticipated. Also included in that is some of the reports that Strgar did in downtown in cleaning up some of the traffic concerns that were out there and the other one is the platting of Outlet B that you saw tonight with Ryan. That staff did not actually take into their plan for 1994 and some of the landscape entries and Hoisington's work in doing those concepts that were presented approximately 3 months ago. We would hope that regarding those landscape entries, that we will bring back a modified version of those three. One, that are maintenance friendly and two, that we could look at probably doing an annual project a year. And that we could go-to local contractors and put a small bid specification together and go to like Lotus or down to Halla or Wilson Nursery and ask them to bid on it. Keep everything local and on a small scale. Something that would be easy for the I-IRA to maintain... With that i am not seeing any other dramatic increases within the budget and staff would recommend approval. Boyle: Don? Chmiel: I've got a couple questions Todd. One on that promotional expense. Is that the ones that you're referring to for 4th of July and some of the other functions? Gerhardt: Sure. Chmiel: Of that $10,000.007 Okay. In there I see nothing as far ns for any advertising, and the question I ask, is there a need even for that because basically the Tax Increment District No. 1 is going to be totally, just about ended as far ns expansion... (There was a tape change at this point in the discussion and a portion of the meeting was not recorded.) CON~IDER APPROVAL OF A PURCHASE AGREEMENT FOR THE SENIOR HQI. I~INI~ SITE. Bohn: ...Who's buying this land, the city or the I-IRA? 17 Housing and Redevelopment Authority - October 20, 1994 Gerhardt: The HRA is going to be purchasing the land and we would look at creating a housing district in this area...your approval tonight, you could also direct staff in modifications to the plan. To...out of the acquisition for lands to this area and that you were the purchaser. Right now the purchase agreement included in the packet is basically an option agreement up until April 1st at which time you would purchase it. So it's a combination option, purchase agreement and we have to go through the Planning Commission, City Council to get the necessary approvals. If for some reason the Planning Commission and City Council do not want to see senior housing project done on this site, then we would not go along with the purchase. Boyle: So in other words Todd, tonight the motion would be made to approve the purchase agreement as written? Gerhardt: Contingent upon City Council approval and an amendment to the tax increment. Boyle: Thank you. Well with that I would like for somebody to make the motion of that nature. Bohn: I'll make the motion. Chmiel: Second. Bohn moved, Chmiel seconded that the I-IRA approve the purchase agreement and direct to make the necessary modification to the Private Redevelopment Agreement with Dean R. Johnson Construction dated April 12, 1994, contingent upon City Council approval and an amendment to the Tax Increment District. All voted in favor and the motion carried. REVIEW. (~ASH BASIS FOR HANUS~ PRYZMUS AN,D PAULY~. Gerhardt: This is kind of an informal one...that you are now in the property management business and these are the cash basis for both the Pauly's building, the Hanus building and the Pryzmus building. In there it shows cash rentals for 5 months and what we had received and then the total income from a monthly basis with balances brought forward for each month... The only exception, and it also shows the expenses that we incurred...ufility costs, taxes per month, management fees, snow plowing. Any supplies we might purchase over there and then year end balances and estimates for October, November and December...incurred all the expenses for there. So as of the end of September on each one of these buildings, that is the balance that you have received to date. Boyle: On each one of the buildings or total? 18 Housing and Redevelopment Authority - October 20, 1994 Bohn: Total altogether. Boyle: That's the total altogether, right?. No, individually? Chmiel: Yeah, it shows. Gerhardt: You received $10,196.00 from the Pauly building to date. ~ expenses. And on the Hanus buildings, the account balance as of the end of September would be $23,200.69. The Pryzmus building, as of the end of September $2,669.84. Boyle: I'm with you now... (There were two conversations going on at the same time at this point.) Chmiel: Todd, when these are being done, when we get all done with these, if there*s any balances that are left, this goes into the main account into the I-IRA. In other words, if there may be somewhere in the neighborhood of maybe $50,000.00. Gerhardt: It would go into what we call the historical trust account and those fees are non tax increment dollars so they go into what we call the historical trust account which pays for certain things to maintain the downtown. Personnel help of Charlie Eyler who maintains the downtown and a couple of summer help people. And basically it's the interest drawn off' of these monies that pay the bills. Boyle: Okay. Thank you for the update. Gerhardt: If you just want to... Bohn: The two fellows that were in Pryzmus' building, are they out of there now? Gerhardt: Yeah. We had sent checks to Jerry Singer and William Linsmayer and Mr. Anderson I guess is out of jail now and he has not agreed to the $10,400.00 settlement. I would expect he will come around here in the near future. That we are to propose the building as being unsafe and have...that the building will be locked of November 1st. As for Mr. Townsend, who the way I understand it is...and tried to get relocation dollars out of us. I sent a letter to him today saying that we had denied his request and that based on State Statute, based on our relocation...contacted MnDot right-of-way relocation experts and say no, he does not qualify. So he feels very comfortable in upholding his ruling on it and the ruling is that Mr. Townsend moved in 1992. We purchased the building in 1990 and it was the responsibility of Mr. Pry~nus to tell him that he did not qualify for the relocation and it was 19 Housing and Redevelopment Authority - October 20, 1994 Mr. Pryzmus' responsibility to tell us of any new tenants that would go in so we could send them notices. So in either case he would not have qualified for... Chmiel: Yeah, I fully agree with that analysis of it. If he were in there prior to our purchase, then that would have been another thing. But after the fact, he has no fights whatsoever. Bohn: The only thing he can do is go back after Pryzmus for not telling him. And he ain't going to get anything. Boyle: I know where he's coming from. The other two guys are getting it and he didn't get it and he's going, wait a minute. Why me? I know. I'm sure that's where he's coming from. Chmiel: Todd and I have had some long discussions on this. Gerhardt: ...he got to remain in the building at a very low rental rent for the last 2 years. Chmiel: But did we not also give him something for moving to the other building? Gerhardt: I was on vacation and he did badger staff because he was making the case that he was going to quickly move into Heritage Apartments and we did pay the $850.00 damage deposit that went along with that. So we have given him...to help him out. We became aware of this, he was not a part of the, that he did not move into the building until 1992 until August and we paid the $850.00 in July. It was Mr. Barckhoff that told me he moved in in '92 so we investigated and the guy submitted certified letter claiming, and Mr. Pryzmus signed it with him, claiming that yes, he did not move in until 1992. So from that we rejected his claim based on his certified letter. Bohn: Where did he move to? Gerhardt: He's in, supposedly in the Market Square Apartments. Bohn: Heritage Park? Gerhardt: Heritage. Boyle: Okay. Well thank you for that update too. APPROVAL OF BILLS. 20 Housing and Redevelopment Authority - October 20, 1994 Chmiel: Just on that $529,000.00 for the City of Chanhassen special assessment payments. What were all those for Todd? Gerhardt: That goes back to the budget. When you see on page, oh the back page of the budget there's a $1,151,730.00... Those are the bond payments. Chmiel: Oh, okay. Gerhardt: So if you take that 529, 255 and double that, ifs pretty dose to that... Chmiel: Okay. I just didn't know exactly what that was for. The only other thing that I just wanted to point out, I know staff is just busier than all get out and I need one more arm to itch their back from all of the things that they're doing. These consultants and getting things accomplished, are really draining us dry. And I would like us to really start looking at some of those things. What the basic need is for them to accomplish it. If we can do it in-house, I would like to see some of those things done. Because we're just, to me it's just like putting a lot of money out there and letting it just get spent. I'm beginning to really watch some of these fee costs and I think we can try to do something basically ourselves. Gerhardt: Well you know, the Vision thing really took us out there. Chmiel: Yes, that one, yes it did. It took us way out there. Gerhardt: There's just no way I could have taken that. Chmiel: No, I understand that. Gerhardt: Or staff for the amount of time that Fred put into it and...I think he had 3 or 4 staff people in his office working on it almost 24 hours a day. Boyle: It seems like every month we see $5,000.00-$6,000.00 in there for Fred. I assume that's going to probably start coming down now right away. Gerhardt: It should be wrapped up by now...as part of that newsletter. Things like that. And then Decision Resources is going to come in and give you a, that's that $2,000.00 for Decision Resources. That's the firm that we used to do the phone survey. So there will be a presentation back... 21 Housing and Redevelopment Authority - October 20, 1994 Chmiel: Is it necessary? When I say that, the only reason I say that is for the mere fact that if they do come out, there's a few more dollars again. Or is it all a pan of that cost? In having him come in to make a presentation on that, what they did. Gerhardt: It's included. Chmiel: It's included in that total amount of dollars? Okay, then that's fine. I guess I'm getting a little tight as I keep these budgets come through. Gerhardt: You know we kind of got that feeling from you and thafs why we suggested that when we do these landscape entries, I tried to...and Mike did an excellent job in cleaning up over there and over where the Taco Shop and Red-E-Mix were...brought in some dirt and graded the area. And that we kind of break these contracts into smaller things. Something we need to write $25,000.00... Boyle: It seems like a pretty good business to be in with some of these, none the less. Could I have a motion to approve the bills? Chmiel: So moved. Bohn: Second. Chmiel moved, Bohn seconded to approve the HRA bills as presented. All voted in favor and the motion carried. Bohn moved, Chmiel 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 22 q" 0 (2: h,, n, · - ,',' ,Z ,Z I- Z i. -- 2) Z Z al. 0 _1 ..J ,~ uJ ILl I- i. ~ I fs I- ra z '~ 0 a. tu 0 -- Z v 0 --I ~ I- 4~ ,., Z (.) lU · Z · vJ · z T' -- 0 m 0 bJ C~ I-- n,. fi,. a ~' 2) - _1 c~ ~ I CJ 0 · m -- ~2 ,~ 0 "~ 0 -J !- -- a: ,J · 0 ~: I- -- 0 C.) 0 -r u'J vJ · · · · ,~ C,) o 0 0 o OITY OF 690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 5,5317 (612) 937-1900 · FAX (612) 937-5739 MEMORANDUM TO: FROM: Housing and Redevelopment Authority Todd Gerhardt, Assistant Executive ~ 0'~~'' DATE: November 4, 1994 SUBJ: Consider Approval of the 1995 Budget; Review of 1994 Debt Analysis x. ~:;.~" '"-'i ' At our last HRA meeting, staff was asked m gi~e an overview of the HRA's current debt analysis. Attached please find a copy of the .updat~ 1994 Debt Analysis. · .. Don Ashworth will be present at Thursday's meeting~o give an overview of the tax increment district's cash position and also present the ~ture estimated projections. I have also attached the proposed 1995 budget report that was::.presented at our last meeting. ~-. · Staff will be prepared to answer the HRA's questions at\~._~~y's meeting. You should also be aware that this is our last sCheduled meeting for 1~.~4. Attachments Debt Analysis Proposed 1995 Budget le CITY OF 690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317 (612) 937-1900 · FAX (612) 937-5739 MEMORANDUM TO: Housing and Redevelopment Authority FROM: Todd Gerhardt, Assistant Executive Director ~ · DATE: SUBJ: October 13, 1994 Consider Approval of the 1995 Budget Attached for the HRA's consideration is the proposed 1995 Budget (see Attachment #1). I have also included the revenue and expenditures for the debt service transfers for your review. The commentary section of the budget gives you a very detailed description of the specific role and responsibility of the HRA. The attached 1995 operational budget outlines the costs associated with thc key personnel and outside services needed to adminis~ each of the capital improvement projects and special projects the ~ has taken on (Highway 5 Corridor Plan, Vision 2002 Study, senior housing, landscape entries, etc.). I have also included money for banners and the I-IRA's continued support of the 4th of July Festival and February Festival. · . ... Staff will be prepared Thursday night to answer any questions the I-IRA may have on the proposed budget and would propose approval of the 1995 budget as presented. : Attachments :. . ..... .... · · .... .. . . _ · 1. Budget Commentary, Revenue/Debt Service and Operational Budget CITY OF CHANHA,.q~EN 1995 BUDGET 'l'~x Increment D~rlct ~ Oeneml Comment: This fund ia Included in the 1994 9uclget for notational pUfTX3ees only. This oper~ budom, per mate law, is officially adopted by the Housing and Redevek3pment Authority. 8hou~ funds be necessary over and above the tax increments gener~ within the dlatriot, or should the HRA propose to establish a general level of taxation#equire bonding, their budget would require eclion by the City Oounc~. As City personnel maintain the accounting records for bolh the HRA as well as the C, lty funcis, one laUme clocurne~ is desired to review overall accounting aclivities. Revenues/Expenditures: The Housing and Redeve~ Aut~ adopts a yem'ly work program which outlines in detail the specific revenue/expenditure leveb proposed for the current year. The HRA'a "Revenues, Expenditures, and Cash Flow Analysis" descrbes the specific revenue~/ex~ras shown in the budget book activities currently being engaged in by the HRA. For example, the Housing and Redevelop~ Autl~ has underwritten the expenditures associated with various public in~ projects within the downtown area and business park. Each of these projects are a separate fund in and of themeeives. Each fund recluires a apec~ debt payment to be paid each year during the course of the next 5-10-15 years. Recogrdzing that Fund 460 is the parent fund, all tax increments are receipted into this master fund. $imEarly, all current and future debt transfers are shown within the parent fund as a proposed transfer out in the year ne~e~,a.-/to cover the expenditure associated with thru particular project. In addition to roaring peymente lot debt ~m~k=e funds, the parm~ tund also accounts for payments made as Incentives to businesses locating w'lthin the community, paying administrative costs associated with the Housing and Redevelopment Authority, and ~ing aCcluisitions of parcels within the downtown area in accordance with the Redevelopment Plan. Prior to the tormation of Tax Increment District No. 1, less than 1% of Chanhaseen's valuation was commemtaL4~strial. Today, nearly 20% of the valuation is commercial/industrial. By the time the district ceases it is enticipmed that at least 30% to 40% of Chanhassen's total valuation will be comrnerclal/lndustrlaJ. This dtvemification wa a~ionirc, antly benefit Chanhassen's ability to meet future local needs while not oreating a tax burden during the period that the valuation is being generated. Expenditures: Personal Services & Com~ities represent a prol~ sham of the associated costs of the 'key personnel" involved in the general and financial adminlatration of the fund. The percentage aliocmions are: City Manager 20% Planner II Ass't City Manager 50% Pklnner II Office Manager 20% Treasurer Planning Director ~ Finance C,o(m:linator Planning Secretary ~ Plmmer I City Engineer 10% 4130 Computer software. 1995: Vision 2002, Landsc, ape Entries, Relocation 8ervbas, Soil Borings, Plating for Outlot B Retail Addition, ADA Compl~ RegorL Senior Housing, Mode~ Housing Alternative& 4375 1994: Banners for February Festival and Fail 'Cattaib'; February Fmtlval Fi~; 4th of July Pionio. 1995: Banners for Cl~ristmas, Spring and Summer; February Festival Fireworks, 4th of July Pionlc. 4703 1994: Computers for Assistant City Manager and 2S% of the =c~t br Planning Director. 1995: HRA's percentage of the (;lis 8yatem. CITY OF CHANHASSEN 1995 BUDGET TAX INCREMENT DISTRICT T-x Increment D~rict ~ · IACCOUNT DESCRIPTION 1964 1694 1995 BUDGET RE-EE'I~,!MATE BUDGET REVENUE GENERAL PROPERTY TAX 3012 Tax Increment Receipts * TOTAL GENERAL PROPERTY TAX 41757,293 4,757,293 5,150,000 4,757,293 4,757,293 5,150,000 OTHER REVENUE 3801 Interest Earnings * TOTAL OTHER REVENUE 60,000 60,009 88,133 60,000 60,000 88,133 TOTAL REVENUE 4,817,293 4,817,293 6,238,133 REVENUE OVER/(UNDER) EXPENDITURES 3,441,243 3,166,C)52 3,746,653 TRANSFER TO DEBT SERVICE Develop Contract T.I. Bonds of 1988(Pking/Const) Taxable Bonds of 1988 G.O. Bonds of 1988 G.O. Bonds of 1989 G.O. TI Refunding Bonds 1990A Taxable T.I. Bonds of 1991 T.I. Bonds of 1992B T.I. Taxable Bonds of 1993A T.I. Bonds of 1993B T.I. Refinding Bonds of 1993E TOTAL TRANSFERS 53,700 0 0 85,172 85,172 82,055 277,275 277,275 311,350 635,879 835,879 581,237 260,000 260,000 658,000 838,558 838,558 517,071 271,755 271,755 273,805 169,875 169,875 214,875 313,138 313,138 309,988 400,000 400,000 450,000 76,980 76,980 76,980 3,362,130 3,328,430 3,475,361 FUND BALANCE FORWARD 162,293 182,293 18,915 LESS REQUIRED RESERVE 241,406 le,915 292'2o7 TOTAL RESOURCES OVER/(UNDER) UABIUTIES 0 0 0 CITY OF CHANHA~EN 1995 BUDGET TAX INCREMENT DISTRICT Tax Increment Dl~rlct ~1 IACCOUNT DESCRIPTION 1094 BUDGET 1~l~5 BUDGET 4010 4020 4030 4040 4050 Salaries & Weges-Reg Salaries & Wages-Temp Contdbutions-Retirernent Contributions-Insurance Workers' Compensstion TOTAL PERSONAL SERVICES 126,100 6,000 15,600 13,000 lf000 161,700 126,100 6,000 15,600 13,000 lt000 161,700 1~..000 6,000 16,500 11,6C)C) lt000 167,100 4110 4130 d~ Supplies-Office Supplies-Program TOTAL MATERIALS & SUPPLIES 2t000 3,600 2t000 3,600 1,600 27000 3,600 4300 4302 4310 4320 4340 4360 4370 4375 4380 4420 4510 Fees, Services Fees, Legal Telephone Utilities Printing & Publishing Subscriptions & Memberships Travel & Training Promotional Expense Mileage Admin. Fees (Overhead) Repair & Maintenance-Building TOTAL CONTRACTUAL SERVICES 40,000 6,50C) 100 1,000 1,600 45O 4,000 10,000 100 75,000 2t000 140,750 120,000 20,000 100 2,100 1,600 25O 3,000 10,000 100 75,000 2OO 232.35O 50,000 15,000 100 1,000 1,600 250 4,000 'IC),C)00. 100 0 157,050 4703 Office Equipment TOTAL CAPITAL OUTLAY 10,000 10,000 10,000 10,000 10,000 10,000 Special Assess~ Pymts. TOTAL DEBT SERVICE 1,060t000 1 ,C)60,000 1~151t730 1,151,730 TOTAL TAX INCREMENT DISTRICT#1 1,652,,241 1,480,480 CITY OF 690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317 (612) 937-1900 · FAX (612) 937-5739 MEMORANDUM TO: FROM: DATE: SUBJ: Housing and Redevelopment Authority Todd Gerhardt, Asst. City Manager ~' September 16, 1994 Review 1995 HRA Budget Attached please find a copy of the 1994 operating budget. As we start our review of the 1995 budget, it is important to point out that the HRA's primary role is to initiate and fund capital improvement projects such as the West 78th Street Upgrade, North Leg of Highway 101, Hanus Facility remodeling, Pedestrian Bridge, etc. None of these projects are included in the HRA's operating budget, but are budgeted through the specific capital improvement funds. The attached 1994 operational budget outlines the costs associated with the key personnel and outside services needed to administer each of the capital improvement funds and special projects (Highway 5 Corridor Plan, Vision 2002 Study, etc2). For 1995, the HRA should start to think about specific projects they would like to see accomplished next year, such as promotional eve~ts (banner for Septemberfest fireworks, sponsor Music in the Park concert series, etc.) and special ~ .that you may want to see done for 1995. No specific action is required Thursday evening; however, staff will take the information from our meeting and use it to establish our 1995 budget. The final budget will be presented at your November meeting for approval. Attachn~nt 1. 1994 Budget FUND it460 TAX INCREMENT DISTRICT NO. 1 1994 BUDGET General Comment: This fund ts included tn the 1994 Budget for notational purposes only.This oper&ttn9 budget, per state law, ta officially adopted by the Houstng and Redevelopment Authority. Should funds be necessary over and above the tax increments generated within the district, or should the HRA propose to establish · general level of taxation/require bonding, their budget would require actto~ by the City Council. As Ctty personnel matntatn the accounting records for both the HRA &s well aa the City funds, one source document ~s desired to review overall accounting lCtt- Revenues/Expenditures: The Houltng and Redevelopment Authority adopts yearly work program whtch outlines tn data11 the epectftc revenue/expenditure levels propoled for the current year. The HRA'e "Revenues, Expenditures, and Cash Flow Analystl" describes the specific revenues/expenditures shown tn the budget book and te hereby adopted by reference. Generally, Fund 460 acts as the parent fund to control the numerous activities currently being engaged tn by the HRA. For exmnple, the Housing and Redevelopment Authority has underwritten the ®xpsn- dttures associated with various public ~mprovement projects w~th~n the downtown area and business park. Each of these pro~ecte ·re a separate fund tn and of themselves. Each fund requires · specific debt payment to be paid each year during the course of the next 5-10-15 years. t~ngntztng that Fund 480 ta the parent fund, all tax (ncrements are tpted into this master fund. Similarly, all current and future' debt afire are shown within the parent fund as I proposed transfer out tn the year necessary to cover the expenditure associated with that par- ttcular prodect. In addition to m&ktn9 payments for debt service fund~, the parent fund also accounts for payments made as incentives to busi- nesses locating wtthtn the coflvnuntty, paying administrative colts &sso- ctated with the Housing and Redevelopment Authority, and completing icqutltttons of parcels within the downtown area in accordance wtth the Redevelopment Plan.~ · Prior to the formation of Tax Increment District No. 1, less than 1~ of Chanh&ssen's valuation was commercial/industrial. Today, nearly 20~ of the valuation is commercial/industrial. By the time the district ceases it is anticipated that at least 30~ to 40~ of Chanhassen's total valuation will be commercial/industrial. This diversification will significantly benefit Chanhassen's abtllty to meet future local needs while not creating a tax burden during the period that the valuation ti being generated. ExDendttures: Personal Services & Con~nodtttes represent · proportional share of the associated costs of the "key personnel" tnvolved tn the general and financial administration of the fund. The percentage allocations ire: City Manager Ass't City Manager Office Manager Planning Otrector Pl&nning Secretary 20~ P 1inner 25~ S0~ P 1 inner 75~ 20~ Treasurer 20~ 20~ F thence Coordinator 1011; 20~; San tot -P 1inner 2St; -96- 460 460 460 46O 460 - HOUS lNG AI~ REDEVELOP~NT AUT143R I TY TAX INCREI~NT DISTRICT #1 1994 B~X3ET ~NERAL p~:)PERTY TAX _1993 19~3 1994 3012 Tax Incr'emm~ Recetpt~ 4,669,637 4,205,068 3099 TOTAL PROPERTY TAX 4,669,837 4,205,068 3801 I ntere~t E~'~'tt nGB 3899 TOTAL OTHER REVE]9.E 60,000 mmmmlmmmmmmlmmm m ~0,000 4,265,068 1,382,600 2,902,488 0 · 173,183 3999 TOTAL REVENLJE 4,729,837 TOTAL EXPENDITURES 292,300 REVENUE OVER (LK)ER) EXPEI~D I TURES 4,447,337 TRANSFERS t,o Debt, Servtce Spl. Assmt,. Rew:Ju~ton Deve 1 op Cont,r&c'c T.I. Bonds of 1883 T.I. Bonds of 1987 T.I. Bonds of 1988(Pk4ng/oonat,) Taxable Bonds of 1988 G.O. Bonds of 1988 G.O. Bonds of 1989 Taxab]e T.I. Bonds of 1989 G.O. TI Refunding Bc~ds 1990A Taxab]e T.I. Bonds of 1991 T.I. Bonds of 1992B T.I. Taxab]e BorMs of 1993A T.I. Bonds of 19938 T.I. RefundJn9 Bonds of 19938 TOTAL TRANSFERS 984,679 323,183 784,841 380, SO0 88,239 290,850 665,542 258,000 237,334 0 314,559 0 0 0 0 4,327,527 87,257 289,559 665,542 258,000 95,000 800,909 273,315 140,470 315,763 250,000 3,765,475 Fund B&lance Forward 557,934 1,051,300 182,293 Required Reserve 677,744 Tot,al Resources over (under) 4,757,293 ~4,757,293 mmmmmmmmm 4,817,293 1,351,050 3,466,243 · 0 53,7CIO 85',172 277,275 635,679 260,000 838,558 271,755 169,875 313,138 76.980 ~,382,130 182,293 266,406 -97- 460 460 460 460 460 46O 46O 46O 460 460 460 460 460 460 460 460 460 460 460 460 460 460 460 460 460 460 460 - HOUSI~ AND REDEVEL~' AUTHORITY TAX INC~REHEF~ DISTRICT #1 1994 BUOC~ET 1993_ 1993 1994. 4010 4020 4030 4O40 4050 S~lar'tee & W~gee, R~ul~' S~l,rtee & W~gee, Tm~p. Oon~tb., Ret, t~ Oon~tb., 118,000 118,00O 126,100 0 5,000 6,000 14,300 14,300 15,600 12,800 12,800 13,00O 700 850 1,000 4099 TOTAL PER~ SERV ICES 145,800 150,950 ' 161,70O 4110 4130 SUl:~l 'lee, Offtc:e Suppl 'lee, Pr'ogrm'n 1,S00 1,800 1,800 2,BX) 2,800 2,000 4299 TOTAL t'IA'I"ERIALS & ~Ui:fl~l~ 4,400 4,400 3,600 4300 43O2 4310 4320 4340 4360 4370 437~ 4380 4420 4510 Fees, Ser'v'ic:~ Fees, Legal Telephorm Pr'trrbtng & Publishing Sub~crt~tcx'~ & I'lmber~tl~ Travel & Tr~tntrtg Pr-czn=~ tor~1 ~ H~ leege &~. Fee, (Ov~-I'~d) nap. & r~trrt:, elcl, & er'nd~ 30,000 40,000 40,000 6,500 6,500 6,500 5OO 100 100 1,500 SiX) 1,000 2,S00 1,0O0 1,800 3,500 5,500 4,0O0 20,0O0 10,00O 10,00O 2,000 2,0O0 2,0C)0 4599 TOTAL COIx'TRACTUA~ SERVI~ 117,100 1.16,500 115,750 .- 47O3 4799 Off 1ce Equtlmmnt TOTAL CAP I TAL 15,000 15,000 10,00O 15,0O0 15,000 10,0O0 DEBT 48O4 4899 Spec t· 1 &eeeem-,m'c TOTAL DEBT SERVICE 0 1,075,750 1,00O,00O 0 1,075,750 1,060,C)~ 4999 TOTAL EXPEND IllJRES 282,300 1,382,~X) 1,351,050 1.1 --98- CITY OF 690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317 (612) 937-1900 · FAX (612) 937-5739 MEMORANDUM TO: Housing and Redevel~t Authority FROM: Todd Gerhardt, Assistant City Manager DATE: November 4, 1994 SUBJ: Consider Modifying the Redevelopment Agreement with Dean R. Johnson Conslruction, Inc. for Phases I and II Mr. Johnson has requested staff ~o ask the ~:~ con,der modifying the Redevelopment Agreement with Dean R. Johnson Consa'uction;.' In'.c.: for both phases of his projec~ Under Phase I, staff and Mr. Johnson did not take ~ ac~..'.~t the demand for this type of housing in Chanhassen. What the current agreement, called/ar was the consmaction of 32 units in : 1994 and 58 units in 1995. However, what has occ~ is that Mr. Johnson has sold all 90 units in 1994 and is asking if he may mo~. the a~t to reflect his efforts and additional site preparation costs in moving up the cons/ruction timetable one year. The changes in the agreement would be as follows: Estimated New Taxes - . Current 1996 1997 1998 $ 40,700 133,650 133,650 Total $10,547 · . -,,¢-. '~?' .... '-- -IOta7 ,.--~-~"~ 123.103 · . .. -. :/._._-.,-:'. ~,.-~_. .:..: ~,-_..;.-..'-..---:~-'~.~..: -~,,:-"- _ 'i-10,547''::''~c- ~':'"'-'"'" .... 123,103 '"-' --i-.- e.,.:-_.~'.?-- $276,359 HRA November 4, 1994 Page 2 proposed Chanees to Phase I Estimated New Taxes Soecial Assessments Payments to Dean R. Johnson for Roadway Improvements/Site P ar ion 1996 $ 133,650 $10,547 123,103 1997 133,650 10,547 123,103 1998 133,650 10,547 123,103 Total $369,309 Staff would also request the agreement include a $40,000 cash payment in 1995 to finalize the purchase price of the senior housing site. You may remember at our last meeting you approved a purchase agreement with Mr. Johnson for $100,000 and that we would have to modify the Private Redevelopment Agreement to reflect the remaining amount of the purchase price. The reason for separating the two amounts was to help off-set the development costs for the senior housing project. By reducing the development costs, this will in mm reduce the monthly rental rates, which was a concern raised during the senior housing project proforma presentation. Under Phase II of Mr. Johnson's original development, he was proposing to construct 104 units of rental townhomes. However, Mr. Johnson has not been successful in finding financing or another developer to rake this project over. Thus, Mr. Johnson is now proposing to develop the property with 51 owner occupied townhome units with a value between $140,000 to $180,000. The advantage of this development is that you are reducing the overall site density from 104 units to 51 units and they are owner occupied. The proposed plan change would be as follows: Phase H Current Aereement Estimated New Taxes Special Assessment, Payments to Dean R. Johnson for Roadway Improvemems/Site Costs 1997 1998 1999 $112,830 $112,830 $112,830 $ 8,920.25 $ 8,920.25 $ 8,920.25 103,910 103,910 10~,910 Total $311,730 HRA November 4, 1994 Page 3 Pronosed Chnn_~es to Phnse H Estimated New Taxes Payments to Dean R. Johnson for Roadway Prcpam~on C~ 1997 $116,235 $ 8,920.25 107,315 1997 116,235 8,920.25 107,315 1998 116,235 8,5r20.25 107,315 Total $321,945 Staff would recommend approval of the proposed change to Dean R. Johnson Private Redevelopment Agreement Phase H for the consmlc~on of 51 units Of owner townhomes. Atmchrn~nts le Proposed new Private Redevelopment Agreements Proposed site plan for the new owner occupied townhomes Previous site plan CONTRACT FOR PRIVATE REDEVEr~PMENT BY AND BETWE~ THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN AND Dean R. Johnson Constz-uction, Inc. ,1994 This document was drafted by: Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 1~B59287 CS130-27 Section 1.1. Section 1.2. TABL~ OF CONTENTS ARTICLE I Definitions ........................... Exhibits ............................ Section 2.1. Section 2.2. ARTICLE H Representations and Waz, ranttes Representations by the Authority .............. 4 Representations by the Redeveloper ............. 4 Section 3.1. Section 3.2. Section 3.3. Section 4.1. Section 4.2. Section 4.3. Section 4.4. ARTICLE III Pubtie A~d-t---e Construction of the ~tn{mum Improvements ......... 5 Form of Public Assistance ................... 5 Limitation on Years of Increment ............... 5 ARTICLE IV Tax ~t Tax Increment Certification 6 Real Property Taxes; Spe~_-!'AsSessments' ' ' ' ' ' ' ' ' '--''' '-'' ' ' ' ' ' ' ' ' ' 6 Real Property Assessment ................... 6 Receipt of Tax Increment ................... 6 Section 5.1. Section 5.2. Section 5.3. Section 5.4. Section 5.5. Section 5.6. Section 5.7. Section 5.8. SIGNATURES TESTIMONIALS EXHIBIT A EXHIBIT B EXHIBIT C ARTICI~ V Additional provl.,d_rm,~ Equal Employment Opportunity ................ 6 Restz'lctions on Use ...................... 6 Notices and Derm~nds ...................... 6 Disclaimer of Relationships . 7 Modifications .......................... 7 Counter~a~s .......................... 7 Termination Date ........................ 7 REDEVELOP~T PROPERTY LEGAL DESCRIPTION FORM OF LIMIT~ REVENUE TAX INCREMENT NOTE FORM OF REPAYMENT AGREEMENT ~BB59287 C~-30-27 CONTRACT FOR PRIVATE REDEV~O~ THIS AGREEMENT, made on or as of the day of , 1994, by and between the Housing and Redevelopment Authority in and for the City of Chanhassen, a public body corporate and politic under the laws of Minnesota (hereinafter referred to as the "Authority") and Dean R. Johnson Construction, Inc., a Minnesota corporation (hereinafter referred to as the "Developer"). WITNESSETH: WHEREAS, the Authority was created pursuant to Minnesota Stat.u.t. es, sections 469.001 through 469.047 (the "Act") and was authorized to transact business and exercise its powers by a resolution of the city council of the City of Chanhassen (hereinafter the "City") pursuant to section 469.003 (formerly section 469..425) of the Act; and WHEREAS, in furtherance of the objectives of the Act, the Authority has engaged in carrying out a redevelopment project known as the Redevelopment Plan for the Downtown Chanhassen Redevelopment Area (hereinafter referred to as the "Project") in an area (hereinafter referred to as the "Project Area") located in the City; and WHEREAS, as of the date of this Agreement there has been prepared and approved by the Authority and the City Council of the City a redevelopment plan for the project (which Plan is hereinafter referred to as the "Redevelopment Plan"); and WHEREAS, in order to finance, in part, the public'redevelopment costs of the Project, the Authority and City have created a tax increment financing district for the Downtown Chanhassen Redevelopment Area (the "Tax Increment District"); and WHEREAS, there has been presented by the Developer to the City and the Authority for their consideration a proposal for the development of 90 owner- occupied townhouses within the Project Area on property located with{n the Tax Increment District; and WHEREAS, the Authority has reviewed the Developer's proposal and has determined that such proposal if completed would serve to accomplish the goals and objectives for which the Project and the Tax Increment District were created; and WHEREAS, in order to achieve the objectives of the Redevelopment Plan, the Authority has determined to provide aid and assistance to the Developer in the form of reimbursement for the cost of the subdivision road and other site improvements; and WHEREAS, the Authority intends to fund the reimbursement expenditures and other redevelopment costs by using tax increments generated from the Developer's housing project; and WHEREAS, the Authority believes that the redevelopment of the Project Area pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public puZ,poses and provisions of the appUcable state and local laws and requirements under which the Project has been undertaken and is being assisted; and CH130-27 ~ WHEREAS, the Authority and the Developer si~ned an agreement reLmrdin~ the 90-unit owner-occupied townhouse p~,oJect on April 12, 1994 (the "Pt-evtous Agreement") but subsequent events have resulted in ,_.hen,s in the preoJect and the need to revise the agreement; and WHEREAS, the Authority and the Developer intend thts Agreement to supersede and be substituted for the Previous Agreement and hereby cancel and rescind the Previous Agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations contained he~etn, the parades hereby covenant and ~ with each other as follows: ARTICr.~ I Definitions Section 1.1. Definitions. In t_htm Agreement, the followin~ terms sbRll have the meaning ~Iven to them unless a different meanin~ clea~ly appears from the context: "Act" means Minnesota Statutes, sections 469.001-469.047 (formerly Municipal- Housing and Redevelopment Act, Minnesota Statutes, sections 462.411-489-. 711), as: amended. "Agrsement" means this Agreement, as the same may be frem time to t~me mobil'led, amended, or supplemented. "Authority" means the Housing and Redevelopment Authority in and for the City of Chanhassen, or any successor or assignee. "Available Tax Increment" means that portion of the ~ml proper~y taxes paid with respect to the Tax Increment District as a result of construction of the .l~ntr~um Improvements on the Redevelopment Property and which is remitted to the Authority prior to the Termination Date as tax increment for the previous one-bAl~' yea~, pursuant to the Tax Increment Act, after-first deducttn~ $5,273.50 for payment of special assessments to the City. "City" memos the City of CbR~hs~sen, a ~tnnesota municipal co~-poration and statutory city accordtn~ to the laws of the state of l~tnnesota. "Const~,uction Plans" means the pl~, specifications, draw~ and related documents on the construction work to be pe~formed by the Developer on the Redevelopment Proper~y which sb,~! be at least as detailed as the plans required to be submitted to the building inspector of the City. "Developer" means Dean R. Johnson Construction, Inc., a _.a~nnesota corporation, or any successors or assigns owning two or more lots or units of the Redevelopment Property for the purpose of developin~ same. "~.tm~ted Revenue Tax Increment Note" or "Note" me~_ na the limited, obligation of the Authority to reimburse the Developer for the cost of the subdivision ~oad from tax increments L~enerated from the .l~tntmum Improvements constructed on the Redevelopment Prope~t~y, as provided in section 3.2 of t_ht~ A~ment and the form of the Note attached hereto as Exhibit B. 1~!~59287 C!L1.30-27 ~ "Minimum Improvements" means the improvements described in the Construction Plans and consisting, generally, of 90 owner-occupied townhouses. "Project" means the goals and objectives of the Redevelopment P1A~_ for the Downtown Chanhassen Redevelopment Area. "Project Area" means the real property located within the boundaries of the Project. "Qualifying Reimbursable Costs" means the costs of soft correction, site preparation and other site improvements actually and reasonably incurred by the Developer in preparing the Redevelopment Property for construction of the M~,~mum Improvements which the Authority has agreed to reimburse to the Developer. Attached to the form of the Repayment Agreement is a list of those items and their estimated costs. "Redevelopment Property" means the real property upon which the Minimum Improvements will be constructed, a legal description of which property is contained on the attached Exhibit A. "Redevelopment Plan" means the plan for the Downtown Chanhassen Redevelopment Area as amended as of the date of this Agreement. "Repayment Agreement" means the agreement to be executed by the Authority: and the Developer regarding reimbursement to the Developer by the Authority of the actual and reasonable costs of soil corrections, site preparation and other site improvements associated with preparing the Redevelopment Property for construction of the Minimum Improvements. The form of the Repayment Agreement is attached hereto as Exhibit C. "Tax Increment Act" means Minnesota Statutes, sections 489.174 through 469.179, as the same may be amended f~om time to time. "Tax Increment District" means the Authority's Tax Increment District for the Downtown Chanhassen Redevelopment Area as amended as of the date of this Agreement. "Termination Date" means the date when the Authority has paid the full amount due under the terms of this Agreement, the Limited Revenue Tax Increment Note and the Repayment Agreement or December 31, 1998, whichever first occurs. "Tax Official" means any city or county assessor; county auditor; city, county or state board of equalization, the commissioner of revenue of the state, any state or federal district court, the tax court of the state, or the state Supreme Court. "Unavoidable Delays" means delays which are the direct result of acts of God, unforeseen adverse weather conditions, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar Judicial action causes delays, acts of any federal, state or local governmental unit (other than the Authority in enforcing its rights under this Agreement), Authority defaults as to the Developer's delays, Developer defaults as to the Authority's delays, .or other matters which are not within the control of the Developer as to the Developer's delays or not within the control of the Authority as to the Authority's delays. lq]~59287 CE130-27 ~ Section 1.2. Exhibits. The following e~h{bits are attached to and by reference made a pan of this Agreement: A. LeLml Description of the Redevelopment Property B. Form of the Limited Revenue Tax Increment Note C. Form of the Repayment Agreement ARTICL~ H Repre~ntathn~ and Wm-mnth~ Section 2.1. Representations by the Authority. The Authority ,,~l~es the following representations as the basis for the under~kin~ on its pa~ herein contained: (a) The Authority has the right, power and authority to execute, deliver and perform its obligations according to th~ Agreement and all other documents to be executed by the Authority pursuant hereto. The Authority will take all: appropriate actions to provide or obtain from the City or other entities the required approvals in order to complete the transaction contemplated according to this Agreement. The Authority assures the Developer that the individuals who execute this Agreement and all other documents executed by the Authority or on behalf of the Authority are duly authorized to sign the same on behalf of the Authority and to bind the Authority thereto. (b) The Project is a "redevelopment project" wtth~- the meant~ of the Act and was created, adopted and approved in accordance with the te~ns of the Act. (c) The Tax Increment District is a tax increment flnanctn~ district, which was created, adopted, ~erldfled and approved prior to AuLmst 1, 1979 and which operantes today as a 'pre-1979' tax increment district except to the extent that it is subject to the Tax Increment Act. Section 9.. 2. Representations by the Develo~er. The Developer makes the following representations as the basis for the undel-takin~ on its pa~ herein con~A~ed: (a) The Developer has the r~ht, power and authority to execute, deliver and perform its obligations according to this ~ment. The Developer assures the Authority that the individuals who execute th~ Agreement and all other documents executed by the Developer or on behalf of the Developer are duly authorized to sign the same on behalf of the Developer and to bind the Developer thereto. (b) The Developer will construct the l~n~,mm Improvements on the Redevelopment l~ope~ty, and will do so in accordance with the te~ns of this Agreement, the Redevelopment Plan and all local, state and federal laws and zoning, bulldin~ code and public health laws and reLmla~ns. (c) The Developer bAR received no notice or communteal:lon from any local, state or fede~d official that the activities of the Developer or the Authority in the ]~BSg2e7 C]Ll30-27 4 Project Area may be or will be in violation of any environmental law or regulation. The Developer is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure. In the event that the Authority is required to take any action to obtain any necessary permits or approvals with respect to the Minimum Improvements or the Redevelopment Property under any local, state or federal environmental law or regulation, the Developer will cooperate with the Authority in connection with such action. (d) The Developer will construct the Minimum Improvements, in accordance with all applicable local, state or federal energy conservation laws or regulations. (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. ARTICLE III Section 3.1. Construction of the Minimum Improvements. Subject to tho terms and conditions of this Agreement, the Developer agrees that it will construct tho Minimum Improvements on the Redevelopment Property in accordance with the Construction Plans. Section 3.2. Form of Public Assistance. a) In order to facilitate the financial feasibility of the development of the Redevelopment Property and in consideration for the Developer's fulfillment of its covenants and obligations under this Agreement, the Authority will reimburse the Developer for the cost of construction of the subdivision road and specified site improvements. The Authority's obligation to fund reimbursements in this amount is contingent.upon the Authority having sufficient Available Tax Increment prior to the Termination Date. The reimbursement shall be paid to the Developer out of Available Tax Increment but only after the Authority has first deducted $10,547 per year for special assessments which have been or would otherwise be levied against the Redevelopment Property. If, in any year in which the Authority is scheduled to make a payment to the Developer in accordance with this section 3.2 there is no Available Tax Increment or less Available Tax Increment than is necessary to satisfy the Authortty's obligation hereunder to the Developer after first satisfying the scheduled payments for the special assessments, the Authority shall not be obligated to make any payment.or a full payment to the Developer for the reimbursement and there shall be no default under this Agreement or the Note on the pa~t of the Authority as a result. b) The Authority and the Developer agree that the first $276,359 in reimbursement payments made by the Authority to the Developer shall be for the cost of the subdivision road. Additional reimbursements shall be made from Available Tax Increment for other site improvements in accordance with the terms of the Repayment Agreement, the form of which is attached hereto as Exhibit C. The Authority shall have no obligation to reimburse the Developer for other site costs until the parties 1q~Sg287 C~X30-27 5 have executed a Repayment Al~'~ement and until the Developer has submitted copies of invoices or other evidence deemed satisfactory to the Authority as to the Developer's actual and reasonable expenditures for such other site improvements. c) The Authority agrees to reimburse the Developer $40,000 in 1995 for the cost of soil com'ections and other expenses incurred in preparing the Redevelopment Property for constmiction of the Minimum Improvement. The Authority's obli~tion for this payment shall not be l~m~ted to AvAilable Tax Increment. Section 3. Il. r.tmitation on Yea~s of Increment. Notwithstanding anlrthtn~ in this Al~eement or the Note to the contm~,y, Available Tax Inc~,ement shall include only the increment actually received by the Authority f~om Catwer county for the first three yea~s after ~ompletion of each tow~house unit but in no event shall any increment payable after December 31, 1998 be included as Available Tax Increment. ARTIC~.~ IV Tax Section 4.1. Tax Increment Certification. The Authority established the Tax: Increment District prior to August 1, 1979. The Tax Increment District is a epre- 1979" tax increment district and is regulated under the Tax Increment Act only to the extent required by the Tax Increment Act or as the Authority has authorized. Section 4.2. Real Proper~ Taxes ~ Special Assessments. The Developer shall pay all ad valorem taxes and special assessments on the l~r~mum Improvements and the Redevelopment Property until the first conveyance of each unit to an owner for use for residential purposes at which time the Developer is released from its obligations under this A~r~ement as to the portion of the Redevelopment Property conveyed. Failure by purchasers of portions of the Redevelopment l>re~,ty to pay real estate taxes when due will affect the mount of Available Tax Increment for purposes of meeting the Authority's obligations under this AL~reement and the Note. Section 4.3. Real Property Assessment. Except for the tow~hrame commnn areas not separately taxed pureuant to law, the Developer shall not cause the Redevelopment Property to be removed from the public tax rolls or to become exempt from assessment or ~ener~l r~d estate taxes by reason of any conveyance, lease, abatement or other action until the Termination Date. Section 4.4. Receipt of Tax Inm-ement. The Authority sbal! make the semi- annual tax increment payments to the Developer out of Available Tax Increment required by the Note and the Repayment ~ment no later fha, July 31 and December 31 of each year in which such payment is due upon the Developer's submission of proof to the Authority of payment of real proper~ taxes for the previous one-half yea~. ~!~592117 c~0-27 $ ARTICLE V Additional Peo~o~ Section §. 1. Equal Employment_ Opportunity. The Developer, for itself and its successors and assigns, agrees that it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and regulations in construction of the Minimum Improvements. Section 5.2. Restrictions on Use. The Developer, its successors and assigns, agree to use the Redevelopment Property only in accordance with the land use regulations of the City. Section 5.3. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered only ff it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Developer, is addressed or delivered to the Developer at 8984 Zachary Lane, Maple Grove, Minnesota 55369; and (b) in the case of the Authority, is addressed or delivered to the Authority at 690 Coulter Drive, Chanhassen, Minnesota 55317, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this section 5.3. Section 5.4. Discl_R~mer of Relationships. The Developer acknowledges that nothing contained in this Agreement nor any act by the Authority or the Developer shall be deemed or construed by the Developer or by any third person to create any relationship of third-party beneficiary, prSnctpal and agent, limited or general partner, or Joint venture between the Authority and the Developer. Section 5.5. Covenants Runnin~ with the I. and. The terms and provisions of this Agreement shall be deemed to be covenants minning with the Redevelopment Property and shall be binding upon any successors or assigns of the Developer and any future owners or encumb~mcers of the Redevelopment Property. Section 5.6. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Developer and the Authority. Section 5.7. Counterpa~s. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 5.8. Termination Date. This AIgreement and the r.~mtted Revenue Tax Increment Note will terminate on the date the Authority has paid the Developer $276,359 plus the amount agreed to under the Repayment Agreement or December 31, 1998, whichever first occurs. ]U~59257 CE130-27 7 IN WITNESS WHEREOF, the Authority and the Developer have c~used this A&'reement to be executed in theJ~ name by their duly authorized officers as of the date first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN, MINNESOTA By Its Chairperson Its Executive Directo= DEAN R. JOHNSON CONSTRUCTION, INC. Its Pt. esident STATE OF MINNESOTA ) COUNTY OF ) On this day of ,1994, before me, a Notaz-y Public within and for said county, appeared James R. Bohn and Donald Ashwoz-th to me personally known, who being by me duly sworn, did say that they ate respectively the Chairperson and Executive Director of the Houal~ and Redevelopment Authority in and for the City of Ch~,~hAssen, Minnesota, a public body corporate and politic, known also as the HRA, under the laws of the state of _.Minnesota, on behAlt' of the HRA. Notaz, y Public STATE OF MINNESOTA COUNTY OF The foreL~oing instmunent was acknowledL~l before me this day of , 1994, by Dean Johnson, the President of Dean R. Johnson Construction, Inc., a Minnesota coz, potation, on behalf of the corporation. Notary Public ]U~Bsg2e7 C~130-27 8 EXHIBIT A to CONTRACT FOR PRIVATE REDEVEr~I~r~T LEGAL DESCRIPTION OF REDEVELOPMENT PROPERTY: Lots 1-8, Block 1 Oak Ponds Lots 1-8, Block 2 Oak Ponds Lots 1-8, Block 3 Oak Ponds Lots 1-8, Block 4 Oak Ponds Lots 1-8, Block 5 Oak Ponds Lots 1-8, Block 6 Oak Ponds and Outlot A, Oak Ponds Outlot B, Oak Ponds Carver County, Minnesota 1~1159257 0B130-27 A-1 ~IT B to CONTRACT FOR PRIVATE FORM OF NOTE $276,359 UNITED STATES OF A~ICA STATE OF MINN]~OTA COUNTIES OF CARVER AND H~NNEPIN TgR HOUSING AND R~u~'v~a,O~ AUTHORITY IN AND FOR THE CITY OF CHANHASSEN LIMITED ~ TAX INCRI~]~IT NOTE The Housing and Redevelopment Authority in and for the City of Chanlumsen, l~tnnesota (the "Authority"), hereby acknowledl~s itself to be indebted and, for value received, premises to pay to the order of Dean R. Johnson Constz-uction, Inc., a l~t~nesota corporation, or its assiKns, (the "Developer"), solely .from the Available Tax Increment ~nerated by the Redevelopment l~operty and Minimum Improvements, to the extent and in the manner hereinafter provided, the princ/pal, amount of this Note, being Two Hundred Seventy-six Thousand Three Hundred' Fifty-nine Dollars ($9.76,359), on the Payment Dates (as hereinafter defined). Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is lc/al tender for public and private debts and shall be made by cheek or draft made payable to the Developer and mailed to the Developer at its postal address within the United States which shat! be desiEnated from time to time by the Developer. This Note is a special and limited obliEation and not a ~neral obligation of the Authority, which has been issued by the Authority to a/d in flnanain~ a "project", as defined in Minnesota Statut.es, section 469.174, of the Authority consts .th~ Kenerally of defr~yin~ certain capital and administration costs incu~ and to be incurred by the Authority within and for the benefit of its Redevelopment Project (the "Project"), and Tax Increment Ftnan~.E District (the "District"). EXCEPT AS TO THE OBLIGATION TO MAKE PAYMENTS FROM AVAILABLE TAX INCREMENT, THIS NOTE IS NOT A DEBT OF THE AUTHORITY, THE CITY OF CHANHASSEN, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE AUTHORITY, THE CITY OF CHANHASSEN, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THIS NOTE, NOR SHALL THIS NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. Any payments on this Note which ai, e due on any Payment Date shall be payable solely from and only to the extent that the Authority shall have received Available Tax Increment as of such Payment Date. For the purpose of thtA Note, "Available Tax Increment" means that portion of the zeal prope~ taxes paid with respect to the Tax Increment District as a result d construction of the ~,t,m~m Improvements on the Redevelopment Prope~ and which is remitted to the Authority prior to the Termination Date as tax increment for the previous one-half yea~, pursuant to the Tax Increment Act, after flret deductln~ $5,273.50 for payment of C~130-27 B-1 special assessments. Notwithstanding anything in this Note to the contrary, Available Tax Increment shall include only the increment actually received by the Authority from Carver county for the first three years after completion of each townhouse unit but in no event shall any increment payable after December 31, 1998 be included as Available Tax Increment. For purposes of this Note, a "Payment Date" shall mean July 31 and December 31 in the years 1996, 1997 and 1998. On each such Payment Date, the Authority shall pay to the Developer all of the Available Tax Increment, after having first deducted $5,273.50 for special assessments; provided, however, that the Authority shall pay to the Developer the payments described herein up to a total of $278,359 but in no event in excess of such amount. To the extent that on any Payment Date the Authority is unable to make any or a full payment from Available Tax Increment as a result of having received, as of such date, no or insufficient Available Tax Increment, such failure shall not constitute a default under this Note and the Authority shall have no obligation under this Note, or otherwise, to subsequently pay any such deficiency. Payments shall be made by the Authority to the Developer on each Payment Date until the earlier of December 31, 1998 or when payments total $276,359. This Note shall not be payable from or constitute a charge upon any funds of the Authority or the City of Chanhassen, and the Authority shall not be subject tot any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increment, and then only to the extent and in the manner herein specified. The Developer shall never have or be deemed to have the right to compel any exercise of any taxing power of the Authority or the City of Chanhassen or of any other public body, and neither the Authority nor the City of Cha~Assen nor any director, commissioner, council member, board member, officer, employee or agent of the Authority or the City of Chanhassen, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by the Developer without the prior written consent of the Authority. This Note shall supersede and be substituted for that certain Note dated April 12, 1994 by and between the Authority and the Developer (the "Previous Note"). The Authority and the Developer hereby cancel and rescind the Previous Note. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and tl~,~ge required by the Constitution and laws of the state of l~tnnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due foden, time, and manner as required by law; and that this Note, together with all other indebtedness of the Authority or the City of Chanhassen outstanding on the date hereof and on the date of its actual issuance and deliverT,, does not cause the indebtedness of the Authority or the City of Chantmssen to exceed any constitutional or statutory limitation thereon. ~Sg287 cm~0-2? B-2 IN WITNESS WHEREOF, the Boaz~ of Commissioners of the Housing and Redevelopment Authority in and for the City of CbAnl~Assen has caused this Note to be executed by the manual signatu~es of the Cha~e~son and the ExeeuUve Diz~etor of the Authority and has caused this Note to be dated as of , 1994. Chairperson Executive ~tor ~IBSg287 C~130-27 B-3 EXHIBIT A to Form of Note LeL~I Description of Redevelopment PTope~y Lots 1-8, Block 1 Oak Ponds Lots 1-8, Block 2 Oak Ponds Lots 1-8, Block 3 Oak Ponds Lots 1-8, Block 4' Oak Ponds Lots 1-8, Block 5 Oak Ponds Lots 1-8, Block 6 Oak Ponds and Outlot A, Oak Ponds Outlot B, Oak Ponds Carver County, Minnesota C~130-27 B-4 EXHIBIT C to Contract for Private Development FORM OF REI~AYMENT AGREEMENT THIS AGREEMENT is made and entered into as of the day of , 1994, by and between the Housin~ and Redevelopment Authority in and foe the City of Chanhassen, a public body co~-porate and politic under the laws of ~n_~sota (the "Authority"), and Dean R. Johnson Construction, Inc., a ]~tnneeota em-poration (the "Developer"). WITNESSETH: WHEREAS, the parties hereto did on November , 1994, enter into that certain document entitled "Contract for Private Development" (the "Contract"); and: WHEREAS, the Contract provided that the Developer would construct 90 owner occupied townhouses (the "Project") on land leLmlly described on E~rhtbit A attached hereto (the "Redevelopment Property~); and WHEREAS, the Developer has incurred certain expenses in cot-rectint~ the soils, preparinl~ the site and otherwise maktn~ the Redevelopment Proper~y suitable for development (the "Q)ualifylnl~ Reimbursable Costs") as specified herein; and WHEREAS, the Authority has a~'i~ed to reimburse the Developer for its actatai and reasonable expenditures for Quaitfytn~ Reimbursable Costs from tax increment paid to the Authority after fh. st deduetin~ the Amount necessary to pay spe~Rl assessments levied a~ainst the Proper~y (the "AvAilAble Tax Increment") and after satisfying its obligation- to the Developer under the T.tm!ted Revenue Tax Increment Note (the "Note"); and WHEREAS, in order to secure such payment, the Contract req~ that the Authority and Developer enter into this Repayment AL~eement; 1592117 C!!130-27 NOW, THEREFORE, in consideration of the mutual obligations of the parties contained in the Contract and in this Repayment Agreement, the parties agree as follows: Section 1. Definitions. Unless the contrary clearly appears from the context, the terms used in this Repayment Agreement shall have the same meanings as given them in the Contract. Section 2. Repayment Amoun.t. Sub~ect to the limitations contained in the Contract and herein, including the Authority's right to deduct for special assessments and its obligation under the Note, the Authority agrees to reimburse the Developer for the Developer's actual and reasonable expenses associated with the Qualifying Reimbursable Costs out of Available Tax Increment. The Qualifying Reimbursable Costs are listed on Schedule 1 attached hereto and constitute the Authority*s maximum obligation under this Repayment Agreement. Section 3. Timing of Payments. The Authority shall reimburse the Developer for the Qualifying Reimbursable Costs starting in the year in which the Authority receives Available Tax Increment. Payments shall be made to the Developer on approximately July 31 and December 31 but in any event not more than 30 days following the date on which the Authority receives Available Tax Increment in its semi-annual tax settlement from Carver county. Subject to the Authority's right to prepay or the Authority's satisfaction of its obligation hereunder at an earlier date, the Authority shall make payments to the Developer until the Termination Date. Section 4. Prepayment. The Authority may prepay without penalty all or part of the amount due under this Repayment Agreement at any time. Upon such payment, the Authority shall have no further obligation to make payments to the Developer. Section 5. Limit of Obligation. The Developer understands and agrees that the reimbursement obligation of the Authority is limited to the Available Tax c~o-z7 B-6 Increment I~enerated by the Proper~ and paid to the Authority durtn~ the term specified in section 3 of this_ Repayment AKreement. Failure by the Developer or its successors or asaiKns to pay real estate taxes due on the Property may reduce or eliminate the Authority's obli~tion under this Repayment AKreement. The Developer further under~tands and aKrees that the Authortty's obligation hereunder is a revenue obligation only, payable solely from Available Tax Incremant. Failure by the Authority to make a payment to the Developer under this Repayment AKreement due to a lack of Available Tax Increment sba1! not constitute an Event of Default under the Contract or this Repayment AKreement. Section 6. Exclusive ObliKation. This Repayment A~ment ~onstitutes the sole and exclusive oblil~ation of the Authority to m~l~e and the sole and exclusive right of the Developer to receive raimb~ment for th~ (~h_~altflrln~ R~hnbu~sable' Costs. The Developer further acknowledl~es that it has no other or fur~hs~, remt~ly ~st the Authority to enforce collection thereof. Section 7. Nature of ObltEation. The parites acknowledKe and underetand th_at the financial and other commitments made in this Repayment AKl~e~n~nt constitute an obli~tion within the meanlnl~ of Minnesota Statutes, Chapter 475 and Section 103 of the Internal Revenue Code of 1986. IN TESTIMONY WHEREOF, the parties hereto have caused this Repayment AKreement to be duly executed as of the day and yea~ ftt~t above wri~n. HOUSING AND REDEVELO~T AUTHORITY IN AND FOR THE CITY OF CHANHASSEN By Its Chatepe~son By Its Executive Dh-ector B-7 DEAN R. JOHNSON CONSTRUCTION, INC. By Its President STATE OF MINNESOTA ) ) SS. COUNTY OF ) On this day of , 1994, before me, a Notary Public within and for said county, appeared James R. Bohn and Donald Ashworth to me personally known, who being by me duly sworn, did say that they are respectively the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Chanhassen, Minnesota, a public body corporate and politic, known also as the HRA, under the laws of the state of Minnesota, on behalf of the HRA. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1994, by Dean Johnson, the President of Dean R. Johnson Construction, Inc., a Minnesota corporation, on behalf of the corporation. Notary public ]U~59287 cm~o-:? B-8 EXHIBIT A TO FORM OF REPAYMENT EXttIBIT LEGAL DESCRIPTION OF REDEVELOP~.~NT PROPERTY: Lots 1-8, Block 1 Oak Ponds Lots 1-8, Block 2 Oak Ponds Lots 1-8, Block 8 Oak Ponds Lots 1-8, Block 4 Oak Ponds Lots 1-8, Block 5 Oak Ponds Lots 1- 8, B lock 6 Oak Ponds and Outlot A, Oak Ponds Outlot B, Oak Ponds Carver County, ~t-nesota R~592e? C1R130-27 B-9 EXHIBIT B TO FORM OF REPAYMENT AGREEMENT The elements and dollar amounts of the Qualifying Reimbursement Costs are as follows: [to be completed prior to execution] RllBsg287 C~130-27 B'10 CONTRACT FOR PRIVATE REDEVE~PMENT BY AND BETW~ THE HOUSING AND REDEVKtO~ AUTHORITY IN AND FOR THE CITY OF CHANHABSEN De~ ]1. Johnmm Construction, Inc. ,199~ This doc~tment was drafted by: Holmes & Graven, Char~cered 470 Ptl!sbu~ Center Minneapolis, MN 55402 1~B59275 (~130-27 TABLE OF CONTENTS ARTICLE I Definitions Section 1.1. Section 1.2. Definitions ........................... 2 Exhibits ............................. 4 ARTICLE I1 Representations and WarTauties Section 2.1. Section 2.2. Representations by the Authority .............. 4 Representations by the Developer .............. 4 ARTICLE III Public Assistance Section 3.1. Section 3.2. Section 3.3. Construction of the Minimum Imp~vements ......... 5 Form of Public Assistance ................... 5 Limitation on Years of Increment ............... 6 ARTICLE IV Tax Internment Section 4.1. Section 4.2. Section 4.3. Section 4.4. Tax Increment Certification .................. 6 Real Property Taxes; Special Assessments .......... 6 Real Property Assessment ................... 6 Receipt of Tax Increment; Proof of Payment ......... 8 ARTICLE V Additio~,d Pt. ovtsions Section 5.1. Section 5.2. Section 5.3. Section 5.4. Section 5.5. Section 5.6. Section 5.7. Section 5.8. Equal Employment Opportunity ................ 6 Restrictions on Use ...................... 7 Notices and Demands ...................... 7 Disclaimer of Relationships .................. 7 Covenants Running with the Land .............. 7 Modifications .......................... 7 Counterparts . . . SIGNATURES TESTIMONIALS EXHIBIT A REDEVELOPMENT PROPERTY LEGAL DESCRIPTION EXHIBIT B FORM OF LIMITED REVENUE TAX INCREMENT NOTE EXHIBIT C FORM OF REPAYMENT AGREEMENT ~H130-27 (t) CC)NTB&CT FOR PRIVATE THIS AGREEMENT, made on or as of the day of , 1994, by and between the Housing and Redevelopment Authority in and for the City of Chanlmssen, a public body corporate and politic under the laws of Minnesota (hereinafter referred to as the "Authority") and Dean R. Johnson Constzatctton, Inc., a Minnesota corporation (heretnsfter ~err~rd to as the "Developer"), WITNESSETH: WHEREAS, the Authority was created pureuant to Minnesota Statutes, sections 469.001 through 469.047 (the "Act") and was authorized to transact business and exercise its powers by a resolution of the city council of the City of Chanlumsen (hereinafter the "City") pureuant to section 469.003 (foz~nerly section 469-.425) of the Act; and WHEREAS, in fu~herance of the objectives of the Act, the Authority has engaged in carrying out a redevelopment project known as the Redevelopment Plan for the Downtown Ch_Anhn-sen Redevelopment Arum (hereinafter ~d~emmd to as the "Project") in an area (heretnnf'ter refezTed to as the "Project Area") located in the City; and WHEREAS, as of the date of this Agreement there has been prepared and approved by the Authority and the City Council of the City a redevelopment plan for the project (which Plan is hereinafter referTed to as the "Redevelopment Plan"); and WHEREAS, in order to finance, in par~, the public redevelopment costs of the Project, the Authority and City have created a tax increment Pl,~Anctng district for the Downtown ChanhAnsen Redevelopment Area (the "Tax Increment District"); and WHEREAS, there has been presented by the Developer to the City and the Authority for their consideration a proposal for the construction of a 41-unit owner- occupied townhouse development wtthtn the Project on prope~y located within the Tax Increment District; and WHEREAS, the Authority has reviewed the Developer's proposal and has determined that such proposal if completed would serve to accomplish the goals and objectives for which the Project Azma and the Tax Increment District were c~eated; and WHEREAS, in order to achieve the objectives of the Redevelopment Plan, the Authority has determined to provide aid and assistance to the Developer in the form of reimbursement for the cost of the subdivision road and other site improvements; and WHEREAS, the Authority intends to fund the reimbureement expenditures and other redevelopment costs by using tax incTementa generated from the Developer's housing project; and WHEREAS, the Authority believes that the r~Klevelopment of the Project Area pursuant to this Al~eement, and fuiftllment LnenereJly of tht~ A&~-ee~t, are in the vital and best interests of the City and the health, safety, moz~ls, and welfare of its residents, and in accord with the public put, poses and provisions of the applicable ~]~B59275 C~130-27 ~ state and local laws and requirements under which the Project has been undertaken and is being assisted; and WHEREAS, the Authority and the Developer signed an agreement regarding the project on April 12, 1994 (the "Previous Agreement") but subsequent events have resulted in changes in the project and the need to revise the agreement; and WHEREAS, the Authority and the Developer intend this Agreement to supersede and be substituted for the Previous Agreement and hereby cancel and rescind the Previous Agreement. NOW, THEREFORE, in consideration of the premises and the mutual obligations contained herein, the parties hereby covenant and agree with each other as follows: ARTICLE I Dofl-~tione Section 1.1. Definitions. In this Agreement, the following terms shall have the meaning given to them unless a different meaning clearly appears from the: context: "Act" means Minnesota Statutes, sections 469.001-469.047 (formerly Municipal Housing and Redevelopment Act, Minnesota Statutes, sections 462.411-462. 711), as amended. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Housing and Redevelopment Authority in and for the City of Chanhassen, or any successor or assignee. "Available Tax Increment" means that portion of the real property taxes paid with respect to the Tax Increment District as a result of construction of the Minimum Improvements on the Redevelopment Property and which is remitted to the Authority prior to the Termination Date as tax increment for the previous one-half year, pursuant to the Tax Increment Act, after first deducting $4,460.13 for payment of special assessments to the City. "City" means the City of Chanhassen, a Minnesota muni~pal corporation and statutory city according to the laws of the state of Mtnrmsota. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Developer on the Redevelopment Property which shall be at least as detailed as the plans required to be submitted to the building inspector of the City. "Developer" means Dean R. Johnson Construction, Inc., a Minnesota corporation, or any successors or assigns, or any future owners of the Redevelopment Property. I~Bsg275 C]~130~27 2 "I~mited Revenue Tax Increment Note" or "Note" means the 11m~ted, special obligation of the Authority to reimburse the Developer for the cost of the subdivision road, from tax increments generated from the Minimum Improvements const~,ucted on the Redevelopment Property, as provided in section .3.9. of th4~ Air, cement and the form of the Note attached hereto as Exhibit B. "Minimum Improvements" means the improvements described in the Construction Plans and consisting, generally, of 41 owner-occupied townhouses. "Project" means the ~ and objectives of the Redevelopment Plan for the Downtown Chanhassen Redevelopment A~ea. "Project Area" means the real properl~y located within the boundaries of the Project. "Qualifying Reimbursable Costs" means the cost of soil correction, site preparation and other site improvements act,,ally and r~asonably incurred by the Developer in preparing the Redevelopment Prope~y for construction of the .~nimum Improvements which the Authority has a~eed to reimburse to the Developer. Attached to the form of the Repayment AL,~ement is a list of those items and their estimated costs. "Redevelopment Property" means the real property upon which the M~,~mum Improvements will be constructed, a legal description of which property is con~_a~ned on the attached Exhibit A. "Redevelopment Plan" means the plsn for the Downtown Chanhassen Redevelopment Area as amended as of the date of th4a Al~reement. "Repayment ALl,cement" means the a~eement to be executed by the Authority and the Developer regardtn~ reimbureement to the Developer by the Authority of the actual and reasonable costs of soft corrections, site preparation and other site improvements associated with prepar4n~ the Redevelopment Prope~ for construction of the l~n~mum Improvements. The form of the Repayment AL~ment is attached hereto as Exhibit C. "Tax Increment Act" means Minnesota Statutes, sections 469.174 through 469. ! 79, as the same may be Amended from nme to ~me. "Tax Increment District" me~,~ the Authority's Tax Increment District for the Downtown Chanhassen Redevelopment Area as amended as of the date of this Agreement. "Termination Date" means the date when the Authority has paid the full amount due under the terms of th~ Agreement and the T.~m4ted Revenue Tax Incr~nent Note and the Repayment AL~eement or December ~1, 1999, whtcheve~ first occurs. "Tax Official" means any city or county assessor; county auditor; city, county or state boa~l of equalization, the commissioner of revenue of the state, any state or federal distr~ct court, the tax court of the state, or the state Supreme Court. · "Unavoidable Delays" means delays which ai, e the direct result of acts of God, unforeseen adverse weather conditions, fire or other cas;:~!ty to the l~nimum Improvements, litigation commenced by t_himt parties which, by injunction or other cvr130-27 similar judicial action causes delays, acts of any federal, state or local governmental unit (other than the Authority in enforcing its rdghts under this Agreement), Authority defaults as to the Developer's delays, Developer defaults as to the Authority's delays, or other matters which are not within the control of the Developer as to the Developer's delays or not within the control of the Authority as to the Authority's delays. Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part of this Agreement: A. Legal Description of the Redevelopment Property B. Form of the Limited Revenue Tax Increment Note C. Form of the Repayment Agreement ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority. The Authority makes the following representations as the basis for the undertakings on its part herein contained: (a) The Authority has the right, power and authority to execute, deliver and perform its obligations according to this Agreement and all other documents to be executed by the Authority pursuant hereto. The Authority will take all appropriate actions to provide or obtain from the City or other entities the required approvals in order to complete the transaction contempiated according to this Agreement. The Authority assures the Developer that the individuals who execute this Agreement and ali other documents executed by the Authority or on behalf of the Authority are duly authorized to sign the same on behalf of the Authority and to bind the Authority thereto. (b) The Project is a "redevelopment project" within the meaning of the Act and was created, adopted and approved in accordance with the terms of the Act. (c) The Tax Increment District is a tax increment financing district, which was created, adopted, certified and approved prior to August 1, 1979 and which operates today as a "pre-1979" tax increment district except to the extent that it is subject to the Tax Increment Act. Section 2.2. Representations by the Developer. The Developer makes the following representations as the basis for the undertakings on its part herein contained: (a) The Developer has the right, power and authority to execute, deliver and perform its obligations according to this Agreement. The Developer assu~es the Authority that the individuals who execute this Agreement and all other documents executed by the Developer or on behalf of the Developer are duly authorized to sign the same on behalf of the Developer and to bind the Developer thereto. (b) The Developer will construct the Minimum Improvements on the Redevelopment Property, and will do so in accordance with the terms of this Agreement, the Redevelopment Plan and all local, state and federal laws and zoning, building code and public health laws and regctlations. (c) The Developer has received no notice or comm13xdcaton from any local, state or federal orris_is! that the activities of the Developer or the Author/ty in the Project Area may be or will be in violation of any environmental law or reKulation. The Developer is aware of no facts the existence of whtoJa would cause it to be in violation of any local, state or federal environmental law, regulation or r~view p~ocedur~. In the event that the Author/ty is required to take any action to obtain any necessary permits or approvals with respect to the Minimum Improvements or the Redevelopment Property under any local, state or federal environmental law or regulation, the Developer will cooperate with the Authority in connection with suah action. id) The Developer will censtz-uct the ]¥Bntmum Improvements, in accordance with all applicable local, state or federal enerlD' conservaton laws or reLmlatons. (e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restr/ction or any evidences of indebtedness, alg~eement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. ARTICLE Public Assistance Section 3.1. Construction of the .l~tntmum Improvements. Subject to the terms and conditions of this ALrreement, the Developer agrees that it will consteuct the ]~intmum Improvements on the Redevelopment Property in actor-dance with the Construction Plans. The Developer ~s to maintain, preset-ve and keep the Minimum Improvements in good repai~ and condition, subject to reasonable wea~ and tear and casualty excepted. Section 3.2. Form of Public Assistance. a) In order to facilitate the financial feasibility of the development of the Redevelopment Property and in consideration for the Developer's fulfillment of its covenants and oblil~atons under this Agreement, the Author/ty will reimbut*se the Developer for the cost of construction of the subdivision toad and specified site improvements. The Author/ty's obligation to fund t~hnbursements in this amount is contingent upon the Author/ty having sufficient Available Tax Increment pr/or to the Tot. ruination Date. The reimbursement shall be paid to the Developer out of Av~tlRble Tax Inc~ement but only after the Author/ty has first deducted $8,920.25 per yea~ for special assessments which have been or would otherwise be levied a~ainst the Redevelopment Peoper~j,. If, in any year in which the Author/ty is scheduled to make a payment to the Developer in accordance with this section 3.2 ther~ is no Available Tax Increment or less Available Tax Increment than is necesaaey to satisfy the Author/ty's obligation hereunder to the Developer after first satsfy/n~ the scheduled payments for the ~!B59275 rm130-27 special assessments, the Authority shall not be obligated to make any payment or a full payment to the Developer for the road reimbursement and there shall be no default under this Agreement or the Note on the part of the Authority as a result. b) The Authority and the Developer agree that the first $311,709 in reimbursement payments made by the Authority to the Developer are for the cost of the subdivision road. Additional reimbursements will be made from Available Tax Increment for other site improvements in accordance with the terms of the Repayment Agreement, the form of which is attached hereto as Exhibit C. The Authority shall have no obligation to reimburse the Developer for other site costs until the parties have executed a Repayment Agreement and until the Developer has submitted copies of invoices or other evidence deemed satisfactor~y to the Authority as to the Developer's actual and reasonable expenditures for such other site improvements. Section 3.3. Limitation on Years of Increment. Notwithstanding anything in this Agreement or the Note to the contrary, Available Tax Increment shall include only increment actually received by the Authority from Carver county for the first three years after completion of each rental building but in no event shall any increment payable after December 31, 1999 be included as Available Tax Increment. ARTICLE IV Tax ~nt Section 4.1. Tax Increment Certification. The Authority established the Tax Increment District prior to August 1, 1979. The Tax Increment District is a "pre- 1979' tax increment district and is regulated under the Tax Increment Act only to the extent required by the Tax Increment Act or as the Authority has authorized. Section 4.2. Real Property Taxes~ Special Assessments. The Developer shall pay all ad valorem taxes and special assessments on the Minimum Improvements and the Redevelopment Property. This is an obligation of the Developer which shall continue until the Termination Date even if the Developer sells the Redevelopment Property, unless the Developer is released of its obligations under this Agreement. Section 4.3. Real Property Assessment. The Developer shall not cause the Redevelopment Property to be removed from the public tax rolls or to become exempt from assessment for general real estate taxes by reason of any conveyance, lease, abatement or other action until the Termination Date. Section 4.4. Receipt of Tax Increment l Proof of Payment. The Authority shall make the semi-annual tax increment payments to the Developer out of Available Tax Increment required by the Note and the Repayment Agreement no later than July 31 and December 31 of each year in which such payment is due upon the Developer's submission of proof to the Authority of payment of real property taxes for the previous one-half year. X~I~g27~ cm~o-~7 6 ARTICLR V Additional Pt~visions Section 5.1. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that it will comply with All applioable federal, state and local equal employment and nondiscr~-dnAtion laws and regulations in construction and ~*ental of the Minimum Improvements. Section 5.2. Restrictions on Use. The Developer, its successore and assigns, agree to use the Redevelopment Proper~y only in accordance with the 1And use regulations of the City. Section 5.3. Notices and Demands. Except as other~vise expressly provided in this Agreement, a notice, demand, or other communication under th~, Allurement by either party to the other shall be sufficiently ~iven or delivered only if it is dispatched by registered or certified marl, postage prepaid, retuen receipt requested, or delivered personally; and (a) in the case of the Developer, is addressed or delivered to the Developer at 8984 Zachar~ Lane, Maple Grove, Minnesota 55369; and (b) in the case of the Authority, is addressed or delivered to the Authority at 690 Coulter Drive, Chanhassen, Minnesota 55317, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forwaed to the other as provided in this section 5.3. Section 5.4. DisclAimer of Relationships. The Developer acknowledges that nothing contained in this Agreement nor any act by the Authority or the Developer shall be deemed or construed by the Developer or by any th~cl pereon to create any relationship of third-party benefid~ry, principal and a~ent, limited or ~eneral partner, or joint venture between the Authority and the Developer. Section 5.5. Covenants Runninz with the Land. The terms and provisions of th/- Agreement shall be deemed to be covenants r~nn4n_~ with the Redevelopment Property and shall be binding upon any successore or assigns of the Developer and any future owners or encumb~cers of the Redevelopment Prope~r. Section 5.6. Modifications.. This Agreement may be modified solely through written amendments hereto executed by the Developer and the Authority. Section 5.7. Counterparts. This Agt~ee~nt may be executed in any number of counterparts, each of which shall constitute one and the same ~n-tt-u~ent. Section 5.8. Termination Date. This ~ment and the T.~dted Revenue Tax Increment Note will terminate on the date of the Authority has paid the Developer $311,729 plus the amo~tnt aKreed to under the Repaynmnt AKreement or December 31, 1999, whichever first occurs. ~59275 C~130-27 7 IN WITNESS WHEREOF, the Authority and the Developer have caused this Agreement to be executed in their name by their duly authorized officers as of the date first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN, MINNESOTA By Its Chairperson Its Executive Director DEAN R. JOHNSON CONSTRUCTION, INC By Its President By Its STATE OF MINNESOTA ) COUNTY OF ) On this . day of , 1994, before me, a Notary Public within and for said county, 'appeared James R. Bohn and Donald Ashworth to me personally known, who being by me duly sworn, did say that they are respectively the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Chanhassen, Minnesota, a public body corporate and politic, known also as the HRA, under the laws of the state of Minnesota, on behalf of the HRA. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1994, by Dean Johnson, the President of Dean R. Johnson Construction, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public ~59275 C~130-27 8 EXHIB~ A CONTRACT FOR PRIVATE REDEVI~O~ LEGAL DESCRIPTION OF REDEVErI)PMENT PROPERTY: Outlot H, Oak Ponds, and the pat-ts of Outlot E and Outlot F, Oak Ponds, lying southerly of the south line of NW 1/4 of SW 1/4 of Section 12, Township 116, Range 23, C. Avvex' County, ~tnnesota CH130-27 A-1 EXHIBIT B to CONTRACT FOR PRIVATE REDEVEr~)PMENT FORM OF NOTE $311,729 UNIT~ STATES OF .~M~I~ICA STATE OF MINNESOTA COUNTIES OF CARVER AND HEN 1N THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN LIMITED REVENUE TAX INCREMENT NOTE The Housing and Redevelopment Authority in and for the City of Chanhassen, Minnesota (the "Authority"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Dean R. Johnson Construction, Inc., a Minnesota corporation, or its assigns, (the "Developer"), solely fr~m the Available Tax Increment generated by the Redevelopment Property and Minimum: Improvements, to the extent and in the manner hereinafter provided, the principal amount of this Note, being Three hundred eleven thousand seven hundred and twenty-nine Dollars ($311,729), on the Payment Dates (as hereinafter defined). # Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Developer and marled to the Developer at its postal address within the United States which shall be designated from time to time by the Developer. This Note is a special and limited obligation and not a general obligation of the Authority, which has been issued by the Authority to aid in financing a "project", as defined in Minnesota Statutes, section 469.174, of the Authority consisting generally of defraying certain capital and administration costs incurred and to be incurred by the Authority within and for the benefit of its Redevelopment Project (the "Project"), and Tax Increment Financing District (the "District"). EXCEPT AS TO THE OBLIGATION TO MAKE PAYMENTS FROM AVAILABLE TAX INCREMENT, THIS NOTE IS NOT A DEBT OF THE AUTHORITY, THE CITY OF CHANHASSEN, OR THE STATE OF MINNESOTA'(THE "STATE"), AND NEITHER THE AUTHORITY, THE CITY OF CHANHASSEN, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THIS NOTE, NOR SHALL THIS NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. Any payments on this Note which are due on any Payment Date shall be payable solely from and only to the extent that the Authority shall have received Available Tax Increment as of such Payment Date. For the purpose of this Note, "Available Tax Increment" means that portion of the real property taxes paid with respect to the Tax Increment District as a r~sult of construction of the l~nimum Improvements on the Redevelopment Property and which is remitted to the Authority prior to the Termination Date as tax increment for the previous one-half year, ~U~59275 C~130-27 B-1 pursuant to the Tax Increment Act, after first deductinS $4,460.13 for payment of special assessments. Notwithstandtn~ an~htn~ in th~ Note to the contrary, Available Tax Increment shall include only increment actually received by the Authority from Carver county for the first three yeats after completion of each rental bufldtn~ but in no event shall any increment payable after December 31, 1999 be included as Available Tax Increment. For purposes of this Note, a "Payment Date" shall mean July 31 and December 31 in the years 1996, 1997, 1995 and 1999. On each of the Payment Dates, the Authority shall pay to the Developer all of the AvAtlnble Tax Increment, after bavin~ first deducted $4,460.13 for special assessments; provided, however, that the Authority shall pay to the Developer the payments described he~dn up to a total of $311,729 but in no event in excess of such amount. To the extent that on any Payment Date the Authority is unable to make any or a full payment fr~m Available Tax Increment as a result of havin~ received, as of such date, no or insufficient Available Tax Increment, such failure shnll not constitute a default under this Note and the Authority shall have no obli~ation under th~ Note, or otherwise, to subsequently pay any such deficiency. Payments shall be made by the Authority to the Developer on each Payment Date until the earlier of December 31, 1999 or when payments total $311,729. This Note shall not be payable f~om or constitute a charge upon any funds of: the Authority or the City of Chanhassen, and the Authority shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon f~om any funds except the Available Tax Increment, and then only to the extent and in the manner herein specified. The Developer shall never have or be deemed to have the r~t to compel any exercise of any taxing power of the Authority or the City of Chsnhnssen or of any other public body, and neither the Authority nor the City of Cbnnh~sen nor any director, commissioner, council member, board member, officer, employee or a~ent of the Authority or the City of Cbsnh~sen, nor any person executtn~ or re~[ster~n~ this Note shall be liable personally hereon by reason of the tss~nce or registration hereof or othem~ise. This Note shall not be transferable or asslLmable, in whole or in par~, by the Developer without the prior written consent of the Authority. This Note shall supersede, and be substituted for that certain Note dated April 19., 1994 by and between the Authority and the Developer (the "Previous Note"). The Authority and the Developer hereby cancel and rescind the Previous Note. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the state of _~esota to be done, to have happened, and to be performed precedent to and in the issuance of tht= Note have been done, have happened, and have been performed in reLmlar and due form, time, and mnnner as required by law; and that th~ Note, to~ether with nil other indebtedness of the Authority or the City of Chanlumsen outstand~ on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority or the City of Chanhassen to exceed .any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the Board of Com~sionere of the Houatn~ and Redevelopment Authority in and for the City of Chn,~hn,~een has caused this Note to xnsg275 cs~3o-;7 B-2 be executed by the manual signatures of the Chairperson and the Executive Director of the Authority and has caused this Note to be dated as of , 1994. Chairperson Executive Director X~U~sg2'7 5 EXHIBIT A to Fora of Note 1'~_~_ 1 D~__~p~_rm o~ ~B1~2~mBnt Outlot H, Oak Ponds, and the parts of Outlot E and Out. lot F, Oak Ponds, lying southerly of the south tine of NN 1/4 of SW 1/4 of Section 12, Township 116, Range 23, Carver County, Minnesota C]!230-27 B--4 EXHIBIT C to Contract for Private Development FORM OF REPAYMENT AGREEMENT THIS AGREEMENT is made and entered into as of the day of , 1994, by and between the Housing and Redevelopment Authority in and for the City of Chanhassen, a public body corporate and politic under the laws of Minnesota (the "Authority"), and Dean R. Johnson Construction, Inc., a Minnesota corporation (the "Developer"). WITNESSETH: WHEREAS, the par~[es hereto did on November , 1994, enter into that certain document entitled "Contract for Private Development" (the "Contract"); and: WHEREAS, the Contract provided that the Developer would construct 90 owner occupied townhouses (the "Project") on land legally described on Exhibit A attached hereto (the "Redevelopment Property"); and WHEREAS, the Developer has incurred certain expenses in correcting the soils, preparing the site and otherwise making the Redevelopment Proper~y suitable for development (the "Qualifying Reimbursable Costs") as specified herein; and WHEREAS, the Authority has agreed to reimburse the Developer for its actual and reasonable expenditures for Qualifying Reimbursable Costs from tax increment paid to the Authority after first deducting the amount necessar~r to pay special assessments levied against the Property (the "Available Tax Increment") and after satisf~ng its obligations to the Developer under the Limited Revenue Tax Increment Note (the "Note"); and WHEREAS, in order to secure such payment, the Contract requires that the Authority and Developer enter into this Repayment Agreement; 1~EB59275 011130-27 B-5 NOW, THEREFORE, in consideration of the mutual obliga~-- of the paz~es cont_Atned in the Contrsct and in tht= Repayment ALrz~ement, the paz~es agroe as follows: Section 1. Definitions. Unless the eontmey clearly appears from the context, the terms used in tht~ Repayment Agreement shrill have the same meanings as g~ven them in the Contr~ct. Section 2. Repayment Amount. Contract and herein, including the Subject to the limitations contained in the Authortty's ri/hr to deduct for special assessments and its obligation under the Note, the Authority agrees to relmbm~e the Developer for the Developerts actual and reasonable expenses associated with the Q)ualtfying Reimbursable Costs out of Available Tax Increment. The Qualifying Reimbursable Costs are listed on Schedule 1 attached hereto and constitute the Authority's maximum obligation under this Repayment Agreement. Section 3. Ttrn~nE of Payments. The Authority sh~l! reimburse the Developer for the Qualifying Reimbursable Costs smvtin~ in the year in which the Authority receives Available Tax Increment. Payments shall be made to the Developer on approximately July 31 and December 31 but in any event not more th~ 30 days following the date on which the Authority receives Available Tax Incwement in its semi-annual tax settlement from Carver county. Subject to the Authortty's ~4F, ht to prepay or the Authority's satisfaction of its obltEation hereunder at an ea~'lisr date, the Authority shall make payments to the Developer until the Termination Date. Section 4. Ih~l~ayment. The Authority may prepay without per-try all or pa~ of the amount due under this Repayment A~eement at any time. Upon such payment, the Authority shall have no fur~cher obli~tion to make payments to the Developer. Section 5. ttm~ of Obli~tion. The Developer understands and ai, rses that the reimbursement obligation of the Authority is limited to the AvsflAble Tax Zl~BSg275 C11130-27 B-$ Increment generated by the Property and paid to the Authority during the term specified in section 3 of this Repayment Agreement. Failure by the Developer or its successors or assigns to pay real estate taxes due on the Property may reduce or eUminate the Authority's obligation under this Repayment Agreement. The Developer further understands and agrees that the Authority's obligation hereunder is a revenue obligation only, payable solely fi, om Available Tax Increment. Failure by the Authority to make a payment to the Developer under this Repayment Agreement due to a lack of Available Tax Increment shall not constitute an Event of Default under the Contract or this Repayment Agreement. Section 6. Exclusive Obligation. This Repayment Agreement constitutes the sole and exclusive obligation of the Authority to make and the sole and exclusive right of the Developer to receive reimbursement for the Q~ualtf~ng Reimbursable Costs. The Developer further acknowledges that it has no other or further remedy against the Authority to enforce collection thereof. Section 7. Nature of ObUgation. The parties acknowledge and understand that the financial and other commitments made in this Repayment Agreement constitute an obligation witkin the meaning of Minnesota Statutes, Chapter 4?5 and Section 103 of the Internal Revenue Code of 1986. IN TESTIMONY WHEREOF, the parties hereto have caused this Repayment Agreement to be duly executed as of the day and year first above written. HOUSING AND REDEVEIX)PMENT AUTHORITY IN AND FOR THE CITY OF CHANHASSEN By Its Chairperson By Its Executive Director 1~B59275 C~130-27 B-7 DEAN R. JOHNSON CONSTRUCTION, INC. By Its President STATE OF MINNESOTA ) ) 8/3° COUNTY OF ) On this day of , 1994, before me, a Nota~ Public witht- and fo]~ said county, appeared James R. Bob- and Donald Ashwoz-th to me personally known, who being by me duly sworn, did say that they are respectively the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of CbAnhsssen, Minnesota, a public body corporate and politic, known also as the HRA, under the laws of the 8tare of b~t-nAsota, on behAlff of the HRA. Notary Public STATE OF MINNESOTA ) ) 88° COUNTY OF ) Tho foregoing instrument was aetrnowledged .before me tht, day of , 1994, by Dean John;on, the President of Dean R. John;on Construction, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public ]~l]!$9275 c~30-27 B-6 EXHIBIT A TO FORM OF REPAYMENT EXHIBIT LEGAL DESCRIPTION OF REDEVELOPMENT PROPERTY: Outlot H, Oak Ponds, and the parts of Outlot E and Outlot F, Oak Ponds, lying southerly of the south line of NW 1/4 of SW 1/4 of Section 12, Township 116, Range 23, Carver County, Minnesota Al~Sg275 ~130-27 B-9 EXHIBIT B TO FORM OF REPAYMENT AGREEM~T The elements and dollar amol_~nts of the Q~s~!fying Rahnbur~ement Costs are as foUows: [to be completed p~lor to execution] ~59275 C]3130-27 B-lO · I -