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1993 08 19CHANHASSEN HOUSING AND REDEVELOP~ AU'IHO~ REGULAR MEETING AUGUST 19, 1993 Vice Chairman Chmiel called the meeting to order at 7:30 p.m. MEMBERS PRF_~ENT; Don Chmiel, Mike Mason and GaO' Boyle MEMBERS ABSENT; Jim Bohn and Charlie Robbins ~TAFF PI~I~-qENT; Todd Gerhardt, Asa Executive Director APPROVAL QF MINUTES: Mason moved, Boyle seconded to approve the Minutes of the Housing and Redevelopment Authority meeting dated Suly 22, 'i993 as presented. All voted in favor and the motion carded. VI~ITOR PRF~I~]TATIQN~; RICHARD WING~ PLANNING FQR DQWNTQWN. Richard Wing: I wanted to catch Charlie and I wanted to ~ Jhn. Some lay members of the HRA. The HRA is a big deal. Big bucks. Big projects. Our future. Nobody's here and people keep hitting me with complaints and problems and issues and I keep saying, go to the lIRA meetings. None of my problem. I didn't, I have no idea what's going on. Talk to the HRA. If there's a meeting there ought to be a crowd at this evening, this Board probably has more power and authority than anybody else in the city and my concern I have here is that the lIRA, by nature, seems to be obscure but the major developments and the big bucks, the decisions that you're making, impact me as a councilmember and that gets to be a problem. I don't have a lot of answers for things you're doing and I'm not positive of where youYe going or what you're doing and between the Commissions and the Council and the HRA and staff, I feel we sometimes we get lost. Too much is happening and I just wanted to comment on a couple issues. Do we have common goals? Do we have common direction? Are we communicating with each other? And I'm not sugg~g we're not but I've lost track of where they're at, especially on issues of priorities. The downtown area is sort of changing a little bit and we met with these Saturday mornings and had all the commissions and everybody come in and we kind of set some priorities up but I don't see the priority list anymore. So I'd like to ask the HRA to try to formulate a little more of a definite priority list again of where we're going. I understand there's reduced income perhaps in the future. You're not going to have the money you thought you were. Maybe we need to look at the list again. So as a councilmember I'd like to know what the priority list is for expenditures for projects. What are the priorities? Thafs what I'm asking. I'm losing it. Ifs become a little bit gray to me. And I'd just ask that you revisit that once again. What are we doing 1 Housing and Redevelopment Authority - August 19, 1993 and again, where are we going. I think this downtown area needs to be reviewed again. What work*s coming in with the proposal and maybe just real quickly, not to catch you off guard at all but I think on ~ dollars, I think that anybody that receives TIF dollars ought to be very respectful to your group. I think they ought to be patient. I think they ought to be cooperative. If we're going to give up bucks for their development, oven though it's benefitting us, there*s still two roads here. And I would anticipate anybody that addresses this group is highly respectfifl and very patient. I don~t think you should make 'decisions quickly and I don't think you should apologize for things to anybody. So I want to be real supportive of that. But more important that anytime TIF money is given out, I want to make sure it's appreciated and it comes back to us in terms of quality and that's falling in terms of behavior, materials, design standards, architectural standards, whatever we're going to do and in particular, this Bloomberg project coming up. This is going to be a permanent project downtown and I think the HRA should be very cautious and spend the TIF dollars very productively and insist on absolute perfection. You know we're coming with Highway .5 with this task force and they're saying brick or better and setbacks and glass and we're creating standards for Highway 5 that's pretty high and although, it's not necessarily going to carry into the central business district, I think we ought to continue this high upgrade. We gave Target TIF money and they would have come in here and done nothing, They would have put up a tent if they could have gotten away with it. And we tried to force the issue. I think we got loss out of them than we could have so I think when everybody whines and screams and yells, it's our money going into their pockets and I think-we ought to demand the.very, best and not compromise at all. And not give in or yield. I don~t care what the market says. I don~t want to be driven by someone else's market. I want to do what's best for the city in the year 2004. 2004 because that's when I retire. 2010 or anyway, I don't mean to pick on Bloombergs or confuse their issue but I just want to make sure that whether it's Target or Bloomberg or anybody else, that we're really upfront on this. Two issues that are hitting me hard constantly that I have no answers for. One is West-'?eth Street. It's too narrow and sight lines. Cars can't see what's coming. And Don is trying to slow down speed on that road consistently. We don't have traffic. We're not policing traffic out'there. Not at-all. We've asked for traffic for as long as Pve known you. There's no radar Out there. At all. Chmiel: There's going to be. Richard Wing: No there's not. Chmiel: Very soon. In fact within the next, for the next 2 weeks. A full saturation. Richard Wing: I have to see it. After 10 years on Public Safety. : Housing and Redevelopment Authority - August 19, 1993 Chmiel: Hopefully you'll see it. Richard Wing: West 78th Street has been a known problem and HRA is putting a million dollars into patching it and the word patch has been used. We're going to a little here, a little there. They've admitted that. That in the year, 20 years down the mad, or 10 years down the road, or when Charlio Sames develops, it may not handle traffic. If you want to interrupt, don't let me get complicated because I don't intend to at all. I'm really wondering, with Bloomberg coming in, with retail and needing parking, with this road knowingly having to be improved in the future. And know/ngly having to be widened at some point. I mean we can't have this town developing with 35,000 with a one lane road going down the main part of town. We're trying to, 6 feet here and 6 feet here and let a fire truck get through here and there, we're patching and we're uying to save a little bit of our investment but maybe before Bloomberg comes in and puts all his money and effort in, just maybe HRA ought to seriously, formally look at the year 2000 for that road and maybe we don't want to patch it. Maybe we want to do what's fight right now and allow trat~ic flow that's going to bo coming in here. Maybe it needs a center line. Center area moves out Maybe it means we have to widen it. Full length right now, 6 feet -Thafs going to impact Bloomberg's retail~ You're' going to take a line of parking out and I think that rather than have him come in and plan his businesses, and create all this retail and then in 5, 10, 15 years say, well we have got to fix this road and we have got to cut it back, I think we ought to think about today. Plan for that eventuality, draw the lines and then let this developmeot come in knowing that that .may be a crisis someday. But I don't want to fix that road later once it's developed and I think tho cart's ahead of the horse right now. West 78th Street isu~ functional and thais my number one complaint I'm getting as a councilmember' and I'm afraid it comes .back to here.· The second one was Market Boulevard. Main drag from the south. 35,000-population projected. A lot of the growth's to the south. We're approving developments faster than we can get them across the board. The traffic's coming north and what do.they nm into? A one lane. They come north and all these wide roads, and then it funnels down into one lane at the tracks and then it spreads out again and that's a screw up and I am asking formally, whether it's HRA or City Council to find out who di'd it. Who designed it and who approved' it. ! don't think it's right and I think it ought to get fixed. And I want it to get fixed today. I think it's a screw up. Thais our major, we haven't even opened Target yet We don~t even have Charlie lames' developed and we%e got 4 lane roads squeezing down into an hour~ and then spreading out again with two little yellow lineS that say, oh you shouldn't be-here. You ought to be shifting over. What a dumb deal. If'I sound angry on this one,' it's only because I've caught so much heat but I don't know how to explain it because I don't know how it happened. I don't think I should bo having to answering-these questions. I'm not so sure it belongs with you. My concern is you probably have tho money to'fix it so thafs'just it. Anyway, I guess enough of that. The main issue I wanted to ask you to consider tonight · . .. Housing and Redevelopment Authority - August 19, 1993 is the entry monuments. I sat out on Highway 5 ~nd remember when we had the video imaging and they did this empty comer and they started adding a wall and they added this and they added this. When I sat out on Highway 5, there was this empty field and I started video imaging this and I think after spending the amount of dollars that you spent and it was a lot of money. And all the years of staff's time and engineering and architects and designs and Jeff Farmakes comes in and kind of comes up with something. At the very end you cut it off. I think that you spent too much money and put too much time in to cut it off. I think it was cut off...cortainly Mr. Mason's comments were well taken and it kind of set me back a little bit. But on the other hand, I really feel that if we look to the city 20 years in the future, that land development costs money. Parks are not free. A neighborhood park and what is going to be an enormous output of $100,000.00 to develop the land and seed it and so forth. I think that if staff can come back with a line by -line itemization of these entry monuments, the amount you spend almost pay for a portion of the wall. So I hate to sluff that off. If we can come back on a line by line item and look at the cost of the wall, and then change it if you want to but then look at the cost of land development and the park and the landscaping as individual issues. Project that to tho Highway 5 development and then project that out to the life of the city, I'm not so sure it doesn~t...considering what we're trying to create downtown. I think ifs kind of a small part that's part of the p-~le that we want to maintain. And if there's hesitation on that, then I would sincerely ask you to make a recommendation after that presentation and send it to the City Council and let them take the heat. Pass the buck to them and let them make the decision. I _think tho entry monuments arc-.too important, too significant, and there's been too much time and money 'spent to put it aside at this point and I would vouch for doing that, my own opinion because of the dollars that have been spent. So I'd like consideration to bring that issue back. Look at it line by line and if in doubt, give it to tho Council. Lot them wrestle with'it. It's a major issue and if you.feel it's inappropriate, then I think you should make the decision you made and let tho Council decide whether to proceed with it or not. So you're powerful players and I just wish Charlie and ~im were here because I really wanted to emphasize the need for you people to be active, participate and be involved because you're the leaders of our corem_unity. I'm almost feeling more so than myself as a councilmember and-it troubles me because so much is' happening and you have so much control over tho direction of downtown. I really felt I wanted to just address that this ev_ening and throw out my commentS. If yOU have any feedback, I'd be interested. If not, I'll leave it at that. Thank you and just let the... Chmiel: Good. Thank you Richard. Does anybody have any? Boyle: Well I sort of agreed with some of his issues. .- . I have no commonts. · . . · ... Housing and Redevelopment Authority - August 19, 1993 Chmiel: Okay. I think ifs some of the things that, more specifically 78th Street. What are we doing with it and how are we going to do that complete wid~ing and of course we're in the process of that stm'fing pretty soon. I think next week, isn't it Todd? Gerhardt: Pardon me? Chmiel: The widening of downtown on 78th Street. Gerhardt: I think they are staking for those, so I do not know. Chmiel: Yeah. My understanding was it was all going to take hold by the 15th of the month. Know what was going to happen af~ that, it was another question. We wanted to make sure that no matter what happened with that, we wanted to make sure that that was going to be completed so there was not going to be that much disruption to the businesses up and down 78th Street. So the accessibility was there. Something we're not going to prolong and do like we did to Minne-muddy-washta Parkway, as some of the people had called it at the time. Gerhardt: I know our next downtown business meeting with the businesses is this Tuesday and the number one item on-that agenda is to talk-about trees and sight lines along with those trees. We're going to discuss that at 7:00 in the morning. Chmiel: 7:00 a.m.? Gerhardt: Yeah, this coming Tuesday. Chmiel: Where at? Gerhardt: In the Council chambers. Chmiel: Okay. Boyle: Chmiel: I didn't hear th~ :- .. Council chambers. 7:00 a.m. on Tuesday. Boyle: Is the plan to widen both sides? Is it 6 feet on each side of 78th or is it just the one side? Housing and Redevelopment Authority - August 19, 1993 Gerhardt: There's certain areas of West 78th Street that will be widened In front of the new Chanhassen Bank. That will get as much as 16 feet in one are~ On the property in front of the Chanhassen City Hall here, there will be 16 feet there. And in front of the Medical Arts there's an additional 8 feet there. Along what will bo the hotel, there's 8 feet there that's going to be pushed back and as far as the presentation tonight, we're going to be taking about 2 to 3 parking stalls over there as a part of that taking. And then along the Town Square. There will be an additional 8 feet taken there. So there are some areas that it will widen. There's some areas that will not be touched. Boyle: This has to be a very expensive project I would assume. This widening to and there's already storm sewer. It has to be a pretty expensive undertaking isn't it? Gerhardt: The traffic signals, the semaphores that are going in and the widening of tho lanes and relandscaping and the construction of a new sidewalk and new curb and gut~r, it's approximately $11 million. Boyle: Richard's point is well taken then. The fact that, if we're putting a patch, a bandaid on something that's going to need, that won't be functional 6-7 years from now, I think thafs a very good point. Gerhardt: We have a professional recommendation from a professional engineer and they are recommending that we do this. They have plans for additional lane expansion into the future when the traffic generates are warrantecL And City Council reviewed those options and approved the plan as ifs going ahea/L Boyle: Okay, have reviewed the option of doing something like even taking'the center out or there were other alternatives. Gerhardt: The center islands, from Strgar, they recommended that they stay. They play a functional role in protecting those left hand turns for those people and they do provide an additional lane. So taking out the medians do not really allow you additional lane width. Chmiel: And if you look at a lot of functio-ing cities th~ are already going, there's just two way traffic normally, basic, ally up and down flu'ough there. Even though we're concentrming on what I would call downtown. I think primarily what was being done was for two reasons. One, emergency vehicles and the accessibility of getting past somebody on the main street. And the other portion of that was to provide just that additional spacing all the way up and down as you have. I thini~ that downtown, with sort of the bandaid approach is going to assist that. Some of the other areas that you're looiring at, from narrowing it down to one Housing and Redevelopment Authority - August 19, 1993 lane, that I think can be rectified. But bringing people into the downtown, Pm not sure as to how that flow is all going to take part. Traffic studies you know, total numbers and when we look at the year 2020, 2030, we're going to have somewhere in that neighborhood of 30 some thousand people within the community. And yet some of those areas that Richard's making, or eluding to, the main traffic areas that are going to be happening west from Market Boulevard is still enough adequacy to handle that kind of traffic there. Market going east as you're, or Market coming onto 78th. Gerhardt: That is one issue that we need to go back and study. Chmiel: Yeah, that has to be looked at because it does narrow down. You can get 2 cars coming in to make a right hand turn and a left hand turn at the intersection. But when it narrows it down to those two, you either allow somebody to go ahead of you or you're going to wind up bumping fenders there and that's. Richard Wing: Well what the issue is, what Todd has stated that Strgar did como in but between the City Manager and Engineering they did stme that this is a mandate. Ifs a patch job. It is not going to handle the fumm traffic flow and that could be as early as 10 years from now. Ifs only an attempt to get the worst spots handled right now. That's good and partly they wanted to save their investment They wanted to get some more life out of it. Well, that's good but I'm concerned that these people coming in are going to be facing major construction in the future and maybe we ought to look to that 10 year down the road right now and not spend money on this bandaid. Simply make that pass for 2 blocks of cars. Or at least if one pulls over, they've still got narrow slots. There's still problem issues. Chmiel' Hopkins is a downtown street that has had problems. They just redid that and it seems to flow rather well and they're happy with what's there now. But they too, of course their population is stable. They're not growing anymore really than what we are here in comparison but yeah, those are things I think that probably will have to be addressed and looked at. There's no question. And the other thing too, on those monuments. I think one of the reasons that we did hold back on it, on those bids, accepting them was the mere fact that the dollars weren't there and that's fight We had to cut somewhere so that was the first place. There were more things that we felt were more important priority wise than those monuments at this time. And I think those monuments aren't dead, nor are the studies that have been put into it. The cost may escalate some as the year's go but tho, you look at a lot of cities who have been more established with a downtown are~. Those particular cities, some of them are just starting to even look at something to say welcome to our oomnrmmity. To draw them to a certain point of corning into their comnmunity. And INto looked at many cities and I've been really paying attention as much as 1Nfo been driving around towards the Housing and Redevelopment Authority - August 19, 1993 · south part of the state and few and far between have monuments to do that enticing or to give that kind of a welcome. Some do a good job, some don't. And I'd rather soo us do a good job than not do anything at all. But I think the dollar appropriations as we presently with the cutback and the dollars that we have coming in, because the re-evaluations of some of the commercial properties has taken a big bite out of what the budget is. And even though we've spent those dollars, it's well spent because we still have that study there and we still can go back to it. But when and where do we put that in that priority list, thafs another question. Richard Wing: Yeah, I wouldn't disagree with a thing you've said. As a matter of fact, I'd support your position but I think the City Manager pointed out that those dollars have been allotted. They were part of the Highway 5 redevelopment and they were sort of there. They weren't oven in your checkbook per se. They were kind of sitting out here because they'd already been allotted and somewhat spent. But if the dollars had been there the whole time and so when it came down to the actual number, to me it wasn~ a now number. It's sort of there all the time. I guess I would have probably not pursued this at all rather than get that far. I don't care what tho timeframe is. I just think it's an asset to tho community but the dollars were there and I think it would be possible to fool more comfortable with them at this time if they were being reviewed in a different light. You may not change your opinion. Anyway, I~,e said my piece. Thank you. Appreciate it. Chmiel: Okay. I just thought I wanted to get a little dialogue back and forth. Richard Wing: I agree. Chmiel: Okay. And I think some of those things that Richard's brought up were well, good points and I think we should look at some of those. In fact, I just met again Monday of this week regarding speeds and yeah. We're going to do something and it's starting this week. This coming week for a 2 week satur~on point. So people better be aware. The speeds as posted is what they're going to go by because we,re had too many 50 mph on 40 mph streets. And we've had 50 mph on the 30 mph streets. Something's got to be done before somebody gets killed, and issuing tickets is the last thing that I'd want to see done but it's going to have to be done. And I know what it did to my family and my kids when they were doing some of those funny things, and insurance rates just absolutely escalated. So speeds are being addressed. In fact we were also seeing if we can get some additional help from the Highway Patrol, if we can in given areas. And they I think are going to participate with us. So with that we can move along into New Business. Housing and Redevelopment Authority - August 19, 1993 CONSIDER APPROVAL Qlr SP~L ASSg-.qSMENT ASSISTANCE FOR COUNTRY SUITES HOT~.L EXPAN$IQN, NEW I~g~ITAURANT AND REMQDELENQ QF ~ FRONTIER RETAIL CENTER, Gerhardt: Mr. Vice Chairman, HRA. At our last HRA meeting Mr. Clayton Johnnon, who represented both Bloomberg Companies and Country Suites Partnership, made a request of tho lIRA for special assessment reduction assistance for tho development of 36 additional rooms to the Country Suites Hotel, remodeling of the old Animal Fair building into a restaurant, and the renovation of the Frontier Building into retail along inbotw~ tho Dinner Theater and Animal Fair. We met this past week with Mr. Johnson and felt that the best approach in dealing with these three projects was to work out a private redevelopment contract with each of the parcels. Mr. Johnson came to terms in that the 3 years worth of increment genergted off of these three developments would bo enough to see him and... Mr. Johnson's hero tonight to give a formal present, on on this site plan to the HRA. Staff is recommending that you direct tho Executive Director and tho Chairman to enter into a private redevelopment contract for each one of tho proposed projects. Brad Johnson: I'd like to show you the big picture first. A little background on the project Mr. Vice Chairman and members. The approach that we are taking, now that it appears that there is no real formal grand plan for the whole area of the downtown, is to get on with. By grand I mean for the back and the recreational center and all that typo of stuff. Is get along with the things that we can probably accomplish in the next 12 months. And those three items are the expansion of the hotel. We have a tenant now for the restaurant, which the hotel feels they need for long term stability economically. And then finally just the revitalization of the front of what we know as the Frontier Building, which the Bloomber8 Companies has already started. So the big picture as we see what is going to happen is this, and the role of the lIRA is generally to give us guidance as to what they'd like to see it look like. And then if we're going the right direction, we'd request assistance. And I might point out, these are dollars that do not exist currently at the HRA. They're strictly dollars that we the taxpayer will generate the first 3 years of our taxes that we would pay if the development was done. Would then come back to us and that's a pretty standard package throughout the community and 3 years is not too much to be sharing a major development like this. I think we anticipate that ultimately the hotel would pay an additional $80,000.00 a year in taxes? Clayton Johnson: 40. Brad Johnson: 40. The restaurant area will have a tax base of about $25,000.00, which is about $15,000.00 increase and the Frontier Building itself is still, lot's say ifs about $16,000.00 1 think we've estimated, but that could be more depending upon how well we r~t Housing and Redevelopment Authority - August 19, 1993 that. Obviously the taxes are assessed against the property. They're based upon the income. That creates the value and currently what we're in the process of doing is creating a building whore a hole exists and that will generate the most new taxes. We're upgrading a builttl-g that's been kind of floundering for some time to a building that will bo still a substantial, that's the restaurant. And then we're making some major changes to the exterior of the Frontier Building which may settle the issue...become a full fledged retail building. One of the things that I think they've done a real good job and Herb and Truman Howell, tho architects are trying to show you a transition which I think was missing a little bit from our last presentation. In other words, you have to come up with some typo of architectural feel that you can do within a budget. And currently we have an architecture that looks somewhat like this down at this end of this particular development. And then we have more of a gabled look hero. So the idea was to create a project which...make a transition down to the Frontier and then ultimately to what the Dinner Theater currently looks like, which is basically you're going from a gabled, and correct me, to a mansard type of a look. And what Herb has been doing, if you go over in front of the sporting goods store now. If you go in there and you'll see the new, and that's not a real expensive change. We're adding rental square footage and by dropping in, pulling away those out and leaving sort of an undercover there of about 3 or 4 feet, it gives a new fresh look to it without having to spend hundreds of thousands of dollars to accomplish that. And you could say, well why don~t you just go in and reface all this and the problem is, we can't get the rents to justify that and I don't think the HRA's in the mood to just reface things. W0~vO tried to do that with a couple buildings. It's very difficult to do. You don~t have a program here currently that the HRA sponsors formally that is just sort of a refacing program. Chaska has it. Duluth has it. They come and go depending upon how funds are set up. We just don't have it so, I mean a good example is the Kenny's building, which I don't think you buys will ever do again. The way you ended up having to do that, right? ...along with the back of the Dinner Theater. Then you%,e got all this parking here which is empty most of the time. So thafs the idee~ This reflects the change in the actual wid_ening of the road and we recommended closing one of these interchanges and opening of this one. Anybody thafs been in there you know you're taking your life in your hand anyway when you come out of here. Right? So we're going to have a semaphore here and then a major interchange here. And so by taking this one out, it will just eliminate another thing and then I noticed that they%,e taken out this barrier here because right now if you're trying to get out, you have to jog around and come back out this way. You guys have all been through that proc, ess right? And so now through this process we go right out to the right. There might be a little stacking but nothing serious. It's all internal. So that's the site. There's a lot of parking. Ideally, if you're doing this tomorrow, you'd move all this back but that's about a $5 million investment that we don~t need to make, and start over again. But like I said, the parking is a question. I know staff is studying it and another way to study it, just like we...drive them. ]ust go in and park. I might point out too is that we are 10 Housing and Redevelopment Authority - August 19, 1993 probably under the most stress today on 78th and Market Blvd. that will be for the next 10 years. As soon as CR 17 opens up again, I mean if you, I nm over on, whafs that road. Kerbor. And that's really the speed road fight now but normally there's nobody there. So what we've done by closing off CR 17...how much traffic really, without all the tra~c thafs going through town. Now it is. But it wasn~ before. I mean Market Blvd's never been as busy as it is and I~,e never seen a 2 block line up over by Brown's in my lifet/me and we~'e got it every morning now. I think that will all go away and partly some of the stress the community is having presently is just dealing with that. I live on Frontier so when I come home now, I have to come all the way around, go by Brown's, cut back and go in. Okay. And when you want to go home, you probably have to do the same thing if you come down TH 5. Dell Road will take some of that pressure off also. So I think that were always said about this road, let's go slow because we don't know what it's going to be and I think most Of your traffic ultimately, Chanhassen traffic for all this retail is going to come fi'om the west, other than a few people from Eden Prairie. But you're going to have aL1 your major concentration's going to be west and south and I think that's why they keep doing these studies but they don~t seem to kill us. Except when they close all these roads off. We~,e had, this is semi disaster if you happen to live over on Kerber BoulevarcL Clayton Johnson: Brad, can I interject just one thing. I think thafs what the grocery store is finding out too. Their survey of checks and so on is that they're drawing very little from the east. It's almost exclusively from. Boyle: And south. Brad Johnson: ...just wonderful here and then we~l get more people from Eden Prairie, and they'll find their way over here. It's still not, look at TH 101. It's still not a disaster and with Dell Road opening here, it will take more pressure off. So I thing this whole traf~Sc thing is a little like, sometimes we go through these cycles. Every time we build some new thing we get all kinds of problems and we always normally study them to death by the time we get around to doing them anyway. And then by the time you do them, it's...during the construction period. This is only the fourth 6me. So that's our proposal. Do you have any comments or questions?... Chmiel: Do you have any questions? Mason: A couple of comments. I think it's great. I think it's going to be just really nice to see that restaurant in town. I'm just, as a citizen of Chan, I'm just real happy to see the hotel expanding and getting some more retail in here. The concept I mean, I'm sure by the time it goes through all the commissions, you know as well as I do, there will be some changes in ll Housing and Redevelopment Authority - August 19, 1993 this, that and the other thing. But I'm just really happy to see it. I'm concerned a little bit about how the back, you know it's so hard with this recreation center, whatever you want to call it, looking like it's pretty well down the tubes, to be thinking about whafs going to be going on back there. And that's again, as a councilmember and as an liRA member, I'm trying to grapple with some of that stuff. How are things going to be looking from the back there? Brad Johnson: Ultimately? Mason: Yeah. Well, no I'm sorry. Not ultimately because who knows. I mean with what you've got fight there. Brad $ohnson: That's as close as you can, you know what the back of the hotel looks like? Mason: Yeah. Brad Johnson: It looks nice and what they're trying to show here is the upgrade of this. Now obviously the hotel itself, if you look at the site plan, the back of it is the bowling alley so there's not much you can do. But we will, we didn't do it but we can always do if somebody looks but it's obvious now when you look across the bowling alley, which is a bowling alley, city building we call it. Instead of this fiat now, all of a sudden we're...you're going to have this coming up. And I think that's what they were trying to do. But everybody seems to be concerned about the bridge so I think thafs why they did the picture. You could move around and take a shot more like this and what we~l do is the same thing that's done for everything else in downtown. We'll take a fiat roof and make it look, even though it's not on it, make it look like it's peaked. Because if you look at the site plans, which is here, okay. You're looking through here when you look at the bowling alley. Right? Now we're going to have a whole new roof stru~e here. So you're looicing at it being kind of aimed I think this way. Now we'll have a view from that and I think the same thing happens when we did this other. I think that's quite accidental but it turned out like we reroofed the whole Dinner Theater from the...Until we actually deal with this back area, and I think what we're trying to say is let us progress with this. And then now that...is selling, we~l probably go out as part of our agreement with Bloomberg and look for a use back here. But remember I cant spend millions of dollars you know...private money to change things. We can lease it up and then redo it according to the lease. Whatever the use is. And then come back and say we've got a plan. And ultimately there are ways of doing it. But we don't buikL..you can't lease them. But we can probably figure out uses for this property back here that would help create it and then as part of the upgrading pay more taxes. And then use those tax dollars to feed back in here. Not from outside the district, just from this project I think what Don kind of told us, 12 Housing and Redevelopment Authority - August 19, 1993 you told us is, we're not going to take money from outside the district to put in here but if you can generate new dollars from within here, then maybe we can do it. There are different ways of doing it. Maybe we can bring the district, and we talked to Todd about it. Well we could go in and do a whole new district fight here. Just do that. Just do 3 years of increment and instead of giving something else, you know to get it done, we could create a district would support itself and what we're trying to accomplish. You guys and everybody would be involved and make the decision, yeah that's a good idea~ Right now we dontt have a use. Quite honestly, we haven't been looking for a use. Nancy Mancino: Can I ask a question? Mike you said is the community center is just down the tubes completely or are we still trying to, I mean I was excited as a citizen to know that we were going to be using TIF dollars for a community project in that TIF district. That it wasn't just going to go to private developers. It was going to be going to something for the community. Mason: Well I don't know that it's totally a done deal but when your budget gets slashed by as many millions of dollars as this budget did, certainly some things you know. Nancy Mancino: ...try and increase the district. The amount of money so that we can in 5 to 10 years build a community center? Start that planning right now? I don~ want to give up on it for future. Mason: I'm just talking for myself here. I don~t think it's been given up on. But you know, then it becomes that problem. If retail can move in. Then it becomes kind of that chess game of well, if. they~,,e got something, what are you going to do? So I don~t think it's a dead deal but it's kind of, I'm assuming it's icind of on the back burner for a while. Chmiel: Within the existing TIF district that ifs in, there's not much more area that can be developed within that TIF district. I think we sold that last lot, is that right Todd? Gerhardt: Well there's still, I'm working with a user right now and there's still some areas. There's the piece owned by Redmond Products. 52 acres on the back side where the public works building is between County Road 17 and Audubon. I'm working with a guy that wants to put a $10 million building in there. Whatever happens on Charlie James' piece, you're looking from $6 to $8 million on that piece. But until you know we get some of those users in and by the time you give them 3 years, you're just not capturing a lot of increment. Even Brad's other proposal tonight, you're only going to benefit from 2 years worth of increment on those. And that's if Brad completes his projects next year. So unless we get bombarded this winter with a lot of development, it's going to be difficult. But we haven~ given up on it. 13 Housing and Redevelopment Authority - August 19, 1993 We're continuing to look at more of a public/private type arrangement and we continue to hammer on Clayton and Herb and trying to work things out It's going to take some time but I don*t think we've given up. We spent too much money on working on tho drawine~s and things like that and you know, I handed out at our last meeting, somebody's going to own that bowling center here in the near future. Eden Prairie is going to put up 40 new lanes over there and I don~ know what the future of this bowling center is in Chanhassen if that occurs. I would hope that both can exist but you know, ifs going to take quite a marketing individual to keep that bowling center going with the 40 additional lanes in Eden Prairie. So this is a top priority for the HRA. I think ifs always been. If ifs not a community center, we want to look at doing something back in this section. It could be a variety of things. Low to moderate end housing. Senior housing. It could be some other private development. It could be YMCA people interested in coming in here. And we're looking at the...so we haven't given up on it. I think Clayton would like us to move a lot quicker on it but you know, we're slow. Brad Johnson: But really has happened is reality has set in and we ali fell asleep. Were only got 7 years left in the district. And the dollars aren't there and I think we all kind of thought sooner or later we'll take care of this last little element. We tried to do it in a lot of different ways. Through referendum. Different kinds of angles and it hasn't gotten done. What we'd like to do, in this particular case is kind of, we know that's there but we~ve got to move along and then our direction from Clayton all along here has been to try to find uses for the back. Somebody has to be doing something otherwise it will just sort of decay and in the process, if everybody here knows what we're doing all the time, so it's not as if it should ever - be any surprise. It takes us on the average of 3 years to get anything under construction anyway. Chmiel: Nancy, just getting back to you just a little bit on the center. I think I feel fairly comfortable with where we're at, at this stage and not moving ahead with that particular center. But that's not saying it's dead. It's done. Because of the dollar allocations that we had coming, I think we did quite well as a Council to determine not spending dollars that we already didn't have in hand, such as Minneapolis has done. And they're over $10 million in debt. Plus other things that they've got going, which is not too much for the city of Minneapolis but nonetheless it's a lot of dollars. And for us to have spent that money already and determine that we're going to be a little bit short, we could have really been in a fine pickle, as they normally say. So I thinl~ we just have to come up with those dollars before we have, we have to have those dollars in hand before we do anything. And I thinir if it takes a couple more years, that's might what it have to do. But I can't see us going beyond where we're at right now with total dollars and contributions that we have or we could put into it. If we get some of these facilities in and that's what I told Todd. I says, lefs get out 14 Housing and Redevelopment Authority - August 19, 1993 and start hustling and getting a few more of these commercialfmdustrial because that's what really makes it for us here. And hopefully we can just move on that Nancy Mancino: Thank you. I just wanted to...vision still lives because I know if you don~ have one, I think ifs never going to come together. Chmiel: That's right. You never say die, you just say damn and keep going ahead. Gerhardt: I just wanted to make one comment to Brad. I think you've done a great job with the graphics but I think the Planning Commission and City Council are really going to want to try to get a picture of the views from, what I'll say is the Market and Highway 5 intersection. If you could put another picture together like that in that ares_ People sitting at the traffic signal over at Rosemount and that way. I think youX, e captured all the other angles but I've kind of been getting that feedback from some of the other... Mason: You know but it's nice getting some visuals instead of these blueprints. I mean that really helps. It really helps a lot Brad Johnson: I think they've done a lot in the last month. This is a big difference from the last meeting. They're working hard. Truman's got this ability to kind of capture some of Herb's architecture and it comes off kind of nice... Chmiel: One question I had. By putting in, we've got to bring in whafs to the east as opposed to what's to the west. But in tying that unit together, to me there's some lind of void yet still there aesthetically. Coming from the new gabled to the mansard, gives me a little bit of problem and it just doesnt look like it's tied in together as it should be and that it's all part of the hotel. For the additional 36 rooms. And I'd just like, maybe Herb can explain to me some of his thoughts behind it as to why that style as opposed to what's existing with the balance of that hotel. Herb Bloomber§: Well I feel that it's identical. We'll use the same siding. The same treatments. It's got a hipped roof because we want it to slope in. The ground is a trifle higher you see than where the present hotel is because they slope. And so we wanted to keep the line so that it's pleasing from all the way around...hipped roof like that, it slopes in from all directions. And of course when you're looking at any kind of elevation drawing, that's a level look and you never see it as a level look. You always see it from the ground which is at a slope and anything up is always less you see when you're looking at something. 15 Housing and Redevelopment Authority - August 19, 1993 Chmiel: Yeah, and I know you have to tie in from the higher roof to the lower portion where the pool is and then tie them back in... Brad Johnson: These are the same gables here. Gahles...show more of the motel... Yeah, the other thing is that this is a one level building down there. Chmiel: Right, and that's what I'm saying. Brad Johnson: And really the last meeting we were at, that's all you saw...and then this meeting they brought in a view of what this one is like and I think they're trying to show here, but once again we can only make these things so long and probably should have another one out here that shows what the. See...You have to pick it off this. All the elements are the same up until you get about here and then this is different but that's supposed to tie into this and then this is all, for the rest of the lot, thafs... Chrniel: Yeah, I know. I know. Herb Bloomberg: See we could easily take the top off of this. We could lower this 4 feet if that would, if we'd like. See because it would just be that..a little longer. Clayton Johnson: And then have a fiat roof. Herb Bloomberg: But when I think of it, see here we~ve got the... Boyle: I don't think that's where, I think the 4 foot on the top probably helps blend it together better. You're thinking, you're looking at a lot of roof on the existing hotel. Brad $ohnson: I think but you're not seeing the other hotel fight now. Boyle: Exactly.. Chmiel: Yeah, and that's the part that yeah. Brad Johnson: See this part here looks just like this part. It's just that you're looking at the wrong roofline. You're looking at something that's a connector. Herb Bloomberg: The other thing is these floors, levels are identical. From here the tops of that window to the top of this window to the top of this window. Completely b~cause that's back...but if you stood at the same perspective in front of the hotel directly it would look the 16 Housing and Redevelopment Authority - August 19, 1993 same heights. They are identical. It happens that this stand...a little bit higher. Maybe a couple feet higher. Brad Johnson: You really have to have the whole transition and in here it shows all the way across almost in the blue line drawing. Because there is a tremendous change and then if we wanted, we could include the Dinner Theater in and that's even more flat and more massive. Chmiel: No. Yeah, that's not needed. Brad Johnson: I think what they're trying to do, if you could just slope it from here to there, the transition might be okay. But that's what the Planning Commission will...work over as somebody said here. Chmiel: I think it blends and there too you have a walkway that's inbetween there. Now is that going to be some kind of a garden inbetween there or what? Brad Johnson: Over here? Chmiel: Yeah. Brad Johnson: Yeah, there*s a courtyard there and a courtyard there. Chmiel: But yet you still have a connection from the hotel directly over to the other part? Truman Howell: This is a connection from the hotel all the way through. So as you're walking through here, you're looking at a little garden site from there. Herb Bloomberg: When you get up to this side of the hotel, ifs looking into a garden area. But that is also shared by the lot line is split in there so that both these people both look into that courtyard. Which works out slick...a little more intense. Chmiel: Your colors are going to blend with what's existing at the existing hotel anyway, right?...The other, one other concern I had yet is flutt parking and I think staff is probably going to address that. Brad Johnson: Yeah, we know that. That*s something we've got to figure out. Chmiel: Has there been any considerations in providing parking in back? For instance, for the restaurant as well. 17 Housing and Redevelopment Authority - August 19, 1993 Brad Johnson: Well, that's what I was trying to show you is that the, right now and we~ze kept it that way. There is an entrance right here to all this parking. And the restaurant people will park a ways away if they know it's there. We don*t know what's happening over here yet. See that's one of the problems. When thafs done, certainly there can be more parking. In other words, if this was going to be the end of all this, then that would be the end of all that. Chmiel: Yeah, and I know the hours of things that really control some of that. But at the same time when you're going to have meeting rooms, how many meeting room.~ will there be and what will that accommodate? Brad Johnson: They're anticipating ultimately staying at the hotel when they're full. Okay. But when it's. Chmiel: But you'll be renting them out, the meeting rooms will be rented out possibly without people staying within the hotel in itself. Brad Johnson: Yeah. I would say that unless it was a banquet. Vernelle Clayton: Not a lot. Clayton Johnson: It's important to understand that the people that own the meeting rooms are the hotel people. They will be leasing those rooms and from experience, the reason that they are not going to look with favor to leasing them to a wedding reception or whatever, is that they're going to hold those meeting rooms back to sell a block of hotel rooms. And so they're almost going to be used exclusively in conjunction with meetings that are taking place amongst hotel guests. There is a restaurant because there's food there and you can cater. But there's one part of the success of the hotel that I think is very important here, and that is that the success of the hotel has been our business mark~ Our business markec..and the resounding message that we get from those customers is, additional meeting rooms where you can serve food. So the hotel people control those rooms. Not the restaurant people so that's why they're not likely to be big parking... Brad Johnson: But it's not going to be like the restaurant is going to be marketing those for wedding receptions. It's the hotel. Chmiel: No, I wasn't thinking of wed~g receptions. I was thinking of other meetings that were to be held and not people who were staying directly at the hotels, as I go to many meetings. I've just been to 2 different meetings this past week down at the Sheraton Midway. 18 Housing and Redevelopment Authority - August 19, 1993 And of course they have a restaurant and they have everything thro~ there and I'm not sure what their total accommodations are but. Brad Johnson: ...most of those meetings during the day? Chmiel: But yeah, that's correct. They were during the day and trying to find a parking spot was rather difficult. Brad Johnson: There are probably as many parking spots around this place and as opposed to when you go into the Radisson. Clayton Johnson: Because of the Theater parking. Brad Johnson: You*e got the Theater parking which, weg'e done those studies. We don~ have, I'm sorry to say, a real focus on retail here. Thafs one of our goals was to do that and what we've ended up is that the most active retail is Millie's Restaurant and during the day, you know, they'd go to heaven over here if this parking lot was full during the day because the Dinner Theater would have done that. Like John just said, this is a lot of parking. Now ideally you'd have it all at the front door. But this is, if you've been to the Radisson to the meeting, this is about how far you walked once you discovered there was no other parking, Chmiel: Right. Brad Johnson: There*s plenty of parking. It's just that it may fill up, and thafs good. If we can sign it and say later on 10 minute or whatever to tell the people that are coming here for meetings, don't park here. But there's plenty of parking out in this area, unless your ride share works so well and fills this up every day you know, but that's okay too. Thafs the idea~ But there are ways. Over at Market Square we had parking problems. We put signg up and so far we're surviving over there but it takes a little while to get the tra~c corrected. But we have really different uses. That's the good news. And then what's happened to this building so far is primarily daytime, office hour kind of people. The best thing in the world is a restaurant and an office building, other than at lunch. With the hotel there, we've emptied out a lot of parking spots to take care of lunch. Chmiel: Just a quick question for Todd. In dra_Ring an agreement, you were saying that we're looking at 3 year taxes but 2 years might be if they proceed. We don~t provide any dollars until a project is completed? 19 Housing and Redevelopment Authority - August 19, 1993 Gerhardt: Ifs pay as you go. Chmiel: It's pay as you go, okay. Alright" Gerhardt: They have to send me their tax statements and on that tax statement it will tell me how much increment was created...and when the taxes were paid. Chmiel: Okay. In going out for some of that financing that you have to do. For instance, with that Animal Fair thing. That's still going to be owned by Bloomberg's themselves? Okay. Clayton Johnson: The hotel will Don. That will be the hotel part. Chmiel: Yes, I understand that. Okay, and we have gone through a process with other buildings within the city as far as modifications sre concerned. Upgrading of those buildings to provide taxes. I just want a clarification on that. Gerhardt: Yes. Chmiel: Okay. Any other questions? Boyle: I don't have any. Brad Johnson: We'll keep you abreast if they totally change it. Mason: We'll find out somehow. Chmiel: I don't think we need a motion on this fight now, or do we? Gerhardt: Yes we do. As to the parking. Chmiel: It's just saying consider approval. Okay, would someone give me consider for approval. Mason: I will give you that. Boyle: And I'll second that. 20 Housing and Redevelopment Authority - August 19, 1993 Mason moved, Boyle seconded that the HRA direct the Chairman and Executive Director enter into private redevelopment agn~meim ~mt outline the tiuee years worlh of tax increment assistance for Bloomberg Companies and lhe Country Suites Parmership. Ail vobM in favor and the motion carried. Brad Johnson: Now we've recorded all your comments so we can take it to the Planning Commission. Thank you. ~EI~FL'TION OF ARCHITF~ AND ENG~ FQR PEDESTRIAN BRIDOF... Gerhardt: At our last meeting it was, lIRA had concerns with the quotation that we got and asked staff to go back and solicit a couple of more quotes for engineering services for the pedestrian overpass. Attached in your packet...and Strgar-Roscoo-Fausch. One point that I would like to highlight in here is that Howard Needles, when they put their first quotation together, they based that on, they've done a lot of work with the State of l~innesota on pedestrian bridges and they felt that with that work that there is additional services that go along with the state and what they demand when they install a facility like this. So thafs where their original quotation came in. After discussions with Fred, a half hour later they resubmitted a second quotation and is before you today. As to Wells and SRF, you know they both were very close in their bid price. So the range is about $73,000.00 to $65,000.00 so everybody was in the ballpark. Right now I would suggest that SRF get the project They're working in the downtown. They have knowledge in the area. They have done other pedestrian bridges. They have a real balance in their fee comparison. They know that this is going to take additional meetings with both the State, city staff, Council, Planning Commission, lIRA. They understand the city process. But I'd like you to know, any one of these three firms could come in and do the work and would do a fine job for you. Right now I could go with either one but I would suggest SRF because I think they really had their hats on when they were putting this proposal together. And Fred had talked with each one of the firms. Fred, did I miss anything? Did I interpret Howard Needle's conversation? Mason: I'll just make a quick comment. I hhink the work that SRF has done with the city in the past has been really good. Pve been really pleased. I'm very comfortable with staffs recommendation. That's my comment. Boyle: I'm very comfortable with the way they broke down their fee comparisons. I'm disappointed in the first one so. I have no problem with this. 21 Housing and Redevelopment Authority - August 19, 1993 Chmiel: Okay. I guess I don't either. I~,e had some discussions with Todd and wetve talked about this. I would have liked to have seen more applicants file or provide a bid to us but we have 3 and I'm not too dissatisfied with what Stqp~r-Roscoe has done, and I would like a motion then. Nancy Mancino: Mr. Chair, could I ask a question? Chmiel: Yes. Nancy Mancino: Todd, when I look down here at the fee comparisons, under Task. I go down to the third one which is concept and there I see a huge difference in prices between Wells and between all of them. What does concept mean and do you know why there's such a big variance in prices there? As I look at the other Task, they're a lot closer in cost. So I'm not sure what concept is. Is that design concept? Fred Hoisington: Let me answer that Todd. The concept stage is to develop three different alternative forms for the bridge that can be used...and we gave all three architects exactly the same information to make their proposals from. We just gave it to them and they all understand what needs to be done...so I'm very comfortable with this because I've spoken to all of them also. And last time around...Now in my interpreting them breaking down some of these things, ifs a different thing. I may not for example, Howard Needles had nothing on the environmental part of this but they had enough of it down here instead but I couldn't break it out so there might be some differences in their...but I'm very comfortable with this at this point. Gerhardt: Fred, to add on the concept. The stages of that. It may come down to what each of the agencies has in-house to provide some of that. Some may have it... Fred Hoisington: That's one of the things I idnd of like about SRF too was that, when we asked Bill Morrish about this when we first got started, we asked him for some reco~en~tions for architects .... and he gave us that firm to be one of the firms to be considered. They are a very creative bunch of people and so... Chmiel: Yeah, and I don't disagree with that because I think over the period of time, I think they've done a good job for us and they have been a little innovative in some of their thinking, which I like as well. And so the only, sometimes they get a little drawn back in seeing the same people coming back into the city to make it appear like thafs the only ones who are going to get the bid, but it's not the reason. Or that's not the way it normally works. But I too know that they have done well by us and performed and one of the things that I 22 Housing and Redevelopment Authority - Augus~ 19, 10/)3 know that Strgar does is they do attend meetings, which is very important. As opposed to some of the previous things that we've had happenex[ I know some of them have not. So that's one of the pluses I like. They're on top of it. Their feet are hitting the floor and they're running and they're going with what they know is going to be the best for the city. And I think they even watch out, I hate to say that when you talk about consultants. Sorry Fred. But they do watch out for the city's dollars as well and that is a number one for me too so. With that, motion. Boyle: I'd like to make a motion then that the HRA accept SRF as the architect for the pedestrian bridge. Mason: I'I1 second that motion. Boyle moved, Mason seconded lira ~e HRA accept SKF (Slrga~Roscoe-F~n~ch) as ~e archil~ct and engineer for fl~e pedes~ian bridge over Highway 5. All voi~d in favor and the motion carded. Gerhardt: I think we can modify the agenda and, not just for Fred but Brad isn't in here, but if we could do the Hanus building so Fred could go. I didn~ put them together. Chmiel: Okay, we'll keep that and weql move onto Number 6. CONSmim APPROVAL OF CONCEPT PLAN FOR HANUS FACll.rI'Y AND Cg cr ASSOCI Gerhardt: I'm excited about this project. I~,e got to toot Fred's hem here. Fred has met with each of the tenants and this was a difficult project when you work with tenants that lease certain things their way and Fred was su~ in going in there. Meeting with each of the tenants and coming to a compromise on the overall development of this facility and working out arrangements regarding parking, landscaping, access to the back of the building and some facade agreements that meets everybody's expectmions. Along with landscaping. And Fred did a great job in facilitating that and coming to a conclusion. With that, this is the results of Fred's efforts and going through what's needed. Chmiel: Well I think we~ve gone through this complete process before and saying what we're proposing doing and how we're proposing to do it. What I'd like to know is the bottom line, and ifs in here. Total dollar cost that we're looking for this facility. And that entails the entirety of cost including. 23 Housing and Redevelopment Authority - August 19, 1993 Fred Hoisington: Don, there could be a couple of changes in that. What we're finding, since this has...is that there is more pavement lying underneath the gravel than we ever knew so we have a little bit more in removals than we had anticipated. Based on our mooting with tho Planning Commission yesterday. Chmiel: Clarify that again for me just exactly what you said. You're finding. Fred Hoisington: We're finding that they're out there doing soil borings now and so they're kind of investigating where they should do those. And in the course of doing that, they're digging down into it and they're finding pavement that's there that was lying under gravel. That thing has been a mess for a long time and so there's more hard stuff there than we had anticipated so there will be more removal. Things that have to be hauled away there than we anticipated so there could be some increase, slight increase there. The Planning Commission last night also wants more landscaping. When we showed them the landscaping plan, they said we'd like more so we probably are going to end up with another tier of trees along the Highway 5 side of this thing so there will be a little bit of additional landscaping cost as well. Chmiel: Estimated at about how much? Fred Hoisington: Well let's say, what are we at? $153 there? I'm going to say that we could be up to $160. Chmiel: No, I meant just on landscaping. What are you looking at? Fred Hoisington: Oh gosh. Because I'd have to, this doesn't break it down. Let me take a look. Chmiel: Because it does break down with the conifers, evergreens. Fred Hoisington: Okay, we would probably add another dozen of the 6 footers but we don~t have that broken out. That's the problem. We~ve got it broken out someplace else. The total cost is $17,240.00 but that's for all of the landscaping and I'm going to guess that you would be talking somewhere in the neighborhood of $3,000.00 to $4,000.00 more for landscaping and probably for removals, we're probably talking another $2,500.00. So you could be looking at let's say. Chmiel: Another $5,000.00-$6,000.007 Fred Hoisington: Yeah. Probably somewhere in there. 24 Housing and Redevelopment Authority - August 19, 1993 Chmiel: Okay, that still doesn't make it much change Todd does it as far as a payback with this and if and when. Fred Hoisington: Actually now, I ~ink we're fight, based on what we're doing with the building now, we're a little bit lower than what we were when we were here last time. Chmiel: Okay, what did we look at the last time? Fred Hoisington: For the building. Remember there was a range from $87 at the high end down to $70. With the partial roof, $74 1 think it was. I think we're at $69 or something like that now so it's not going to be a substantial departure from where it was before. We're probably going to move around a little bit. Chmiel: Well I have real concerns when we go out for bids and we get bids and then 2 weeks later we're sitting back here approving some additional dollars. Fred Hoisington: Hopefully we have everything incorporated this time. One of the things that's an addition however on the building now is, of course we're not going to replace the doors but we're going to paint the whole building this time, which we were not going to do before and that added $6,000.00. I'm not sure how they got it down to the $69 now but I think things are going to come in pretty dam close unless we shoot some sort of a spike in cost when this thing is bid. Chmiel: Shouldn't. There's a lot of hungry people out there. Fred Hoisington: So not much has changed. As far as the site plan, it's basically the same site plan. We've made some minor modifications to it. But I don~ think they're sigllificant enough that you ought to be terribly concerned about them. Most of them are landscaping Boyle: Fred, somewhere I had some old correspondence I was reading a while back, meeting with Gary Brown and somebody said they're die. They're fight to their death by the time... Was that the island? Fred Hoisington: That's right Gary. What we did was we had an island right here. And of course we still have the island out here and he was, we were negotiating some of this stuff, including this out in front and I said well, we could compromise here and we could compromise there but I said, I can't compromise on this island and Gary said, I'll fight to the death over that one. I was kind of kidding because he has to plow this and I don~t really care 25 Housing and Redevelopment Authority - August 19, 1993 that there's not an island here anyway. Because I'm concerned about lttis and I'm concerned about this edge but I conceded that and it seemed that it was agreeable to concede it so. Boyle: So nobody's going to have to fight to their death. Fred Hoisington: Gary is very pleased with where we're at fight now. He is very pleased with where we're at right now. Boyle: Alright, good. Todd do we, I'm getting off the subject a little bit Are there perspective buyers right now for this building? Gerhardt: We have an agreement with Gary Kirt that he has the option to repurchase from us 3 years from now at a certain dollar amount~ Boyle: So we can't do anything prior to that time if somebody came in and wanted to purchase the building? Gerhardt: No. He has the first option. Boyle: He has the first option, yeah. Thank you. I'm okay with it. Chmiel: Michael? Mason: Yes. Chmiel: Can I have a motion? Mason: So moved. Boyle: Second it. Gerhardt: That motion included Tim Stefan as the architect's contract in the back here? Chmiel: Yeah, for $6,920.00. Mason: Yes it did. 26 Housing and Redevelopment Authority - August 19, 1993 Mason moved, Boyle seconded that the HRA approve the site pin for the Hanus Building R~modeling and file architects contract with Stefan and Associates for $6~q20.00. All voted in favor and the motion carrie& APPRQVAL QF A PRIVATE REDEVEIQPMENT AOREEMENT WITH OnNSON CONST CnO . Gerhardt: This is a first phase of the Oak Ponds development. I don~t use overheads very often. Mason: I can tell. Gerhardt: First phase, Brad is hoping yet this year to complete 16 units of the owner- occupied townhouses and that will be these first two buildings. And based on that development you would see approximately $18,304.00 in increment in 1995. And in 1996, Brad is hoping, or 1994 Brad and Dean l~ John~n are hoping to complete these two units and the remaining second phase of the owner-occupied townhomes. Chmieh In '957 Gerhardt: In '95. Chmiel: You said before '96 something. For those first two. Gerhardt: The first year of increment that we could capture so in 1996 you would be reimbursed the $18,304.00 for the first phase. And then in 1996 you would get full increment of $102,667.00. Chmiel: Providing the balance is all in. Gerhardt: If the entire development is completed. Chmieh Then if some of that development does not go in, do you prorate that accordingly or what? Gerhardt: Yes. It's a pay as you go program so you only get what you create. 27 Housing and Redevelopment Authority - August 19, 1993 Brad $ohnson: I think also...I think we've committed to get this done by...If we go over into '97. Chmiel: Yeah, I think you did but I don't know about Mr. Dean Johnston. Boyle: Todd, did you say $18,300.00 per unit? Gerhardt: No, for the 16 units. Boyle: For the 16 units which is all of Phase 17 Gerhardt: Right. Each unit will pay approximately $1,100.00 a year in taxes. Boyle: Okay, that seemed. Okay. Chmiel: Now this is all, okay. So we could get some more dollars off of this and how many years before we. Gerhardt: You could get 99 in the year 2000. Chmiel: $99,000.00? Gerhardt: 1999 and the year 2000. You would capture $616,000.00 in increment that you could use for certain projects. Chmiel: Okay. Brad Johnson: How much? Gerhardt: $616. Brad Johnson: In one year? Chmiel: Just a couple. Mason: That's a loL Brad Johnson: That's the total we're getting. 28 Housing and Redevelopment Authority - August 19, 1993 Gerhardt: No, it would be $204,000.00 for the current project Chmiel: Oh, okay. It sounded bettor. I was trying to figuro out how... Gerhardt: As it is, you still don~t get... Brad Johnson: ...we'll probably get Phase 2 done next year. Boyle: Well why not do it this year? Brad Johnson: We were all set...it only takes 4 years. Mason: Are you still getting a real good response? Brad Johnson: For~ Mason: To get the units sold? Brad Johnson: ...I mean he's selling them but nobody can get to them... Chmiel: Okay, go ahead Todd. Gerhardt: In talking about the public improvements, this is, they are privately going in and I had the engineering department...that this would be the cost associated with that installation and that's what we're demanding for a letter of credit from the developer. So basically what you're doing is approving a private redevelopment contract with Dean l~ John~n Construction and their request of $308,000.00 in special assessment assistance and of that, writing down $288,988.34 of public improvement costs and $19,011.67 for land write down. Chmiel: How often do we do write downs on land7 Gerhardt: It really depends on the increment that's generated. The larger developments, it seems as if you have enough increment to write down land and how much infrsstructure really needs to go in place. A lot of the Chanhassen Lakes Business Park, when I first started here, we were just writing down specials because they were so large an amount against each of the projects. But over the years as Opus paid those specials down, more and more money became available for the land write down aspect, because those specials were being paid over the years. 29 Housing and Redevelopment Authority - August 19, 1993 Chmiel: Yeah. We have done this previously and other areas as well the write downs for land. Gerhardt: This is the first one that we've done where we've seen private development install the street. In most cases we~,e sold bonds and incurred the cost and assessed the properties for the public improvements where the city physically went in and built those. But due to our large amount of debt and this really being a single purpose development, the city has taken the position that we will not extend our bonding capabilities to install public improvements for single purpose development. Chmiel: Good. I fully agree with that concept and we've had discussions. Only because I want that bonding rating to improve. So when we do go out and do that, we can still save a lot more bucks. Gerhardt: And there is a federal law that says that cities should not use their bonding capabilities for single use developments. A lot of cities ifs a real question...in determining what a single purpose is. So some people take it one way. Right now we've got an auditor, a city engineer that felt this one was a single use. Chmiel: I agree. Okay, any other questions? Boyle: lust one question. Are these all single unit dwellings or did I hear you say townhomes? Gerhardt: They're 8 unit townhomes. Boyle: In Phase 1 or Phase 2? Gerhardt: Some are 16 units. Chmiel: Some are 16 units, yeah. It shows fight here on this back side. Boyle: I couldn't read it. Gerhardt: This is a 16. Chmiel: These are 16, 8, 8, 8. One of these are eliminated down here too. Gerhardt: This one is now eliminated here. 3O Housing and Redevelopment Authority - August 19, 1993 Brad Johnson: No. Chmiel: No? Which? Brad .lohnson: The middle one. Chmiel: Yeah, there's 3 from the fight. Yeah, it should be this one right here. Is there any reason why dais has not been updated as far as the site plan? Todd, is there any reason why this has not been updated with the site plan to show that unit removed from there? Gerhardt: It was a transparency that the Planning Department had at the time when they gave their presentation. Chmiel: Okay, but the site plan that we will have, and the ones that I will sign will show that eliminated, correct? Gerhardt: That's correct. The official site plan already shows...shows that unit out of there. Chmiel: Okay. Any other questions? Hearing none, I'll call the question. Boyle: I make a motion that we approve the private redevelopment agreement to Dean $. Johnson Construction Company. Mason: I'll second it. Boyle moved, Mason seconded flint the HRA approve fl~e Private Redevelopment Contract wi~h Dean IL Johnson Construction and their request for $308,000.00 in special assessment and land write down assistance. AH voted in favor and the motion carried, CONSIDER APPRQVAL QF PRIVATE REDEV~OPMENT AQREEMENT WITH OAK PQNDS CQ~~ DEVELO~ ASSQ~_ATION. Gerhardt: This one is a little more comphcated. I messed it up. I was really cramming here on Friday and what I forgot to take into account was, as a part of these rental units, the first phase has special financing through FHA that it uses a 2.2% calculation in doing real estate taxes. The second phase would have the 3.3% calculation in determining taxes. So in correcting my report I handed out to you tonight the correct estimate for real estate taxes. It should be in front of you. It's a single paper like this. Column One highlights Phase 1. 31 Housing and Redevelopment Authority - August 19, 1993 Phase 1 takes into account 8 units here. This one, this one, which is a total of 64 units and then Brad's hoping to complete Phase 1 by December 31, 1994. If he meets that guideline, the increment coming back to him for the first phase will be $74,646.00. And then the second phase, which takes into account these two, is again calculated on a different tax bases in column 2. The value of that development would be $960,000.00 and that would create approximately $41,000.00 a year in increment. In taking the $41 and the $74 and adding those two together, this development in 199'/would pay a full taxes of $115,830.00. That is if Brad completes Phase 2 by December 31, 1995. Does that make sense? Boyle: Yep. Gerhardt: Okay, after that in 1998 he would also cap~e an additional full years worth of increment of $115,830.00 and then 1999, he would get the remaining increment of $41,184.00 which is the difference between the Phase I and the remaining third year of incremenL So if you added the $74,646.00 plus the $41,184.00, you would como up with $115,830.00. (Taping of the meeting ended at this point in the discussion.) Mason moved, Boyle seconded to approve the Private Redevelopnmm Contract with'Oak Ponds Community Development Associmion md their request for $347~490.00 in special assessment and land write down assistance. All voted in favor and the motion csni~ APPRQVAL QF BILL~, Mmon moved, Chmiel seconded to approve the bills of the HRA as ~ All voted in favor and the motion carried. Mason moved, Boyle 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 Naun Opheim 32