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1992 07 23CI~SEN HOUSING AND RED~VELOPHENT AUTHORITY REGULAR HEETING JULY 23, 1992 Chairman Horn called the meeting to order at 7:30 p.m.. - NEHBERS PRESENT: Clark Horn, Don Chmtel, Tom Workman, 3tm Bohn and Charlie Robbins ~T~FF PRESENT: Don Ashworth, Executive Dtreotor; and Todd Gerhardt, Asst. Executive Director ~PPF~/~J- OF MINUTES: Chmiel moved, Workman seconded to approve the Minutes of the Housing and Redevelopment Authority meeting dated June 18, 1992 as amended on page 4 to change the statements made by Robbtns to Bohn as Chariie Robbins was absent from that meeting. AII voted in favor and the motion carried. VISITOR PRESENTATION: CONCEPTLhM. PL~$ FOR ~ LIBIV~ ~ ENTRY HONUNENT 'DESIGN. JEFF Ff~q~KES. Jeff Farmakes: I'm Jeff Farmakes. Horn: Are you with the library and entry monument? 3elf Farmakes: I'm not with the library and entry monument. I'm Just'on the Planning Commission and a citizen of Chanhassen. I've been following this and I 'ye got a couple of items that are sketches of what' some verbalization and discussion that you've had and I'm throwing them into the discussion to facilitate that. From what I've seen, it didn't Seem like it would hurt at all. I followed this piece Of property on TH 101 and Great Plains Blvd. and 78th Street since they closed the street down. It 'used to come down in front of St. Hubert's Church. They made this one piece of property. Do you remember the road used to come up in. front of the cemetery and in front ol= the church.. When they closed that down, they got this sort of triangular piece of property here. It had of course the... connected out in front of the church. Closing sight line to the old church. The only sight line we had to the old ohurch-was across, kitty corner from where that Kenny's development was. What I saw here was the potential for a specific use that I think is maybe being overlooked. When . they discussed the library they talked a bit about placing buildings and where, putting them up in here. Using the same parking lot...and I asked myself a couple of questions. What type of useage-would be appropriate here. Next to the cemetery and next to the church. That alone is kind of difficult to build on that piece of property because there's a certain amount of stage problems with what you put there. What is relevant ri{iht there. It seems to me a civic use would be relevant. What !'ye opened up here is included a garden concept with a water feature. Have it open up the sight lines from 78th and TH 101 to Old St. Hubert's Church. Where presently the Old Town Hall and the bars block it off completely. 'When you enter the east part of Chanhassen to come into the city, you 'see a sea of impervious surface. You have the parking lot at' the Dinner Theatre. You have the parking lot at the commercial development on 78th Street here. You've got a parking lot behind Pauly's and you've got the parking lot over Housing and Redevelopment Authority July 23, 1992 - Page 2 by St. Hubert's Church. Basically you have parking lot upon parking lot upon parking lot. And when you drive into Chanhassen, I've did a work up up here. This is an overhead positioning of the property. I'll pass it down there. Presently with what the HRA's owns...additional chunk back in there that's 300 by 78 feet. That is owned by Al Klingelhutz. There's an additional room in there by an abandoned rail line next .to that' property. If the HRA would acquire that property where presently there is a sort of officized residential single family home that's presently being used as a real estate office. The potential for additional properties to wrap the library around into a garden, park area might be feasible depending on what the final study is on the library. Workman: Jeff on that diagram, is up we~t? Horn: Yes. Jeff Farmakes: This is north. Here's St. Hubert's Church. The present square would be here which is now Heritage Square. The Old Town Hall which is now right here be moved over to be part of the facade of an open court say with the library. Library being back in here wrapped around this end. That is now parking lot. We have a lot of future garden area. And again, that pivotal point that people come in, you can see the spire of this church from the adjacent park. You can see it when you enter from Eden Prairie. The focal point of the community. Right now it seems that it's really being under utilized. And it's also one of the few buildings in Chanhassen on the Historical Register. It would seem to me that the potential here is for integrating these uses in one piece. That would be a real advantage to the City. Whereas typically we can handle these projects separately. The potential here to open this up, reposition Town Hall so it's not in front of the Church in the trapezoid that we built there. -That would greatly improve that corner. It also would add a pad of green in the middle of all those parking lots which would gO a long ways I think to improve the overall impression of Chanhassen as you drive into it. Horn: Now Town Hall again is where on your concept? Chmiel: It's right adjacent to the library. The picture up above in the upper portion depicts that. Horn: Oh okay. Jeff Farmakes: There's a legend on the side. Robbins: ...perspective of what:s existing now. You .can see where he takes them out. Jeff Farmakes: And you can see from'the overhead view, the amount of impervious surface surrounding it. The only difference, to date the photograph, the only difference really is the Medical Arts Building that now is placed there. Bohn: How many parking stalls do you have? Housing and Redevelopment Authority July 23, 1992 - Page 3 Jeff Farmakes: I have 30 some in there. It's overgrown quite a bit so it's hard to determine. A lot back there is 300 x 78. Then there's an abandoned railroad line that comes in here. There's probably some additional footage that could be gotten. Chmiel: I think the library has looked for 60 parking spaces which on many Saturdays that I sit out here and I look at the utilization for all the spots we have now, are never used. Jeff Farmakes: Another irony of this is, at least this parking lot is not used very often. And it's really a surrounded parking lot. The question would be, what is a relevant use of time and when overflow is considered a problem. But the concept also, if you think of a relationship. If they build a conference or civic center in-the downtown area, it would provide a green area, a heritage area where what better place to put a library. Horn: Might even have room to put a depot in. Jeff Farmakes: What about the abandoned rail line? Chmiel: They could also put up, people wanting to go to a library, we have benches in the outside during the summer. They could go outside and read. Jeff Farmakes: Have any of you been to the gardens area that's inbetween Lake Harriet and Calhoun? Wot kman: Yes. Jeff Farmakes: There's a formal garden and rose garden. There's a formal garden after that and then there's a rock garden. The rock garden's would be very much in tune to the surrounding countryside here. The limestone and the water feature and perennials. Things of that nature. You could do something quite unique there. And there really isn't something like that around here. There of course is landscaping and some gardening on a landscaping basis but you could do a unique garden here. The'Arboretum of course... Horn: Have you talked to the library folks yet on this? Jeff Farmakes= No I haven't. I was here when they discussed the initial concept here at the last meeting. It seemed very liquid to me and it didn't seem to serve any purpose at that point. The library, it seems to me is an additional part to this. Whether the library is there or not isn't going to change the difficulty of developing that piece of property. Obviously a commercial piece of property there next to'the Church and cemetery, would be a very difficult item and it seems to me that Chanhassen of course is choosing two strategic areas. Rgain the Market Street and this particular area could go a long way to soften the effect of having the large expanse of impervious parking lots. Ne don't have a. main street. We've got a lot of parking lots as you come into town and having these greenery spots at the end of Market Street and here would be strategic I think in adding a softening effect to what we have.. Housing and Redevelopment Authority July 23, 1992 - Page 4 Horn: We had some discussion after the Presentation last month and I think it was somewhat of a consensus up here that we didn't think their proposal, their first proposal was the right spot for a library next to a commercial. This seems to be much more compatible and it also really does a pice Job of setting that area apart which is really what we're looking for is somewhat of a civic area. I really like this concept. Chmiel: Maybe Don would like to pass that around to 'the, maybe Councilman Wing would like to look at it. Morn: I think the obvious next step would be to sell the library group on this concept. From an aesthetic sense it shouldn't be a hard sell. Jeff Farmakes: I'd be happy to leave it here... As I said, a lot of time, I've talked about this...doesn't go very far because one picture is worth 1,OOO words and you can sit down and discuss. Horn: No, this looks good. Bohn: Have you talked to Barnes and Klin~elhutz? Jeff Farmakes: No, no. I haven't gotten, I'm not into any development here. I'm simply talking an idea. Chmiel: Jeff came to me last Sunday and we sat down and he brought this over to the house. We looked at this and I liked the idea of it as well. So I asked that he be put on the agenda for today so he could present this and at least give us what the concept could be. He's not trying to sell anything. He's just more interested in the idea because he lives here. He resides here. He's also on the Planning'Commission'~s he mentioned. And like that kind of freshness to come back in. Horn: I do too. Jeff Farmakes: I don't think a lot of people realize because it's so hidden the treasure that that old church is. It's one of the last, it is the only old building left except for the old Town Hall but it's made of brick-. Bohn: We have one other old building. Jeff Farmakes: We have others... Bohn: Governor Rice's summer home. Jeff Farmakes: Yeah. Well there's the...too. My point is downtown here, we have very little left in the way of old architecture. Horn: Right. Well that's great. I see you have something on an entry monument design also. We've not been too impressed with what we'Ve seen so far so we're looking for a good idea there too.. Jeff Farmakes: I tell you, the monument is also... 'I did a concept relevant to the monument but backing up and this is maybe more a City Housing and Redevelopment Authority July 23, 1992 - Page 5 Council feature. Backing up. The issue of identity...and we use several different logos. And as we're growing and investing in these monument signs, the idea is to take a look at professionalizing the city image and tying that together. To give you a couple of examples. This is what Honeywell does with that. They have a useage book here that is incredibly detailed. The other end of that, Dick Wing might like this, is Northwest, although they have a book like this, set up a simplified version. So it can be done. It can be done without incurring a great deal of expense. But I addressed the issue here on how the logo is used. The image of a leaf is used. The image of a boat is used. The leaf changes from yellow to orange/red to tan. It's kind of all over the place. The...is used from the old Western development theme, which is really no longer relevant for what's going on here. It would seem to me that perhaps this should be reassessed as an overall scheme for the city. The parks', the services, the water towers, the city itself. Public Safety. I provided the Mayor with- an article and...same problems as they grew. Different departments went off and did different things. Different logos and eventually it became quite a mess. The reason for bringing it up now is it seems it's kind of pivotal. If we're spending money on some-of these things that we expect to last many years. We're putting tens of thousands of dollars into this and should we not look to singling out an image that we're using. Say the leaf for instance and eliminating the rest. Simplify what it-is we do and taking into account the useability type...industrial signage. Car signage. On cars. Things of that nature. $o if you want to pass this around. I've got two versions of a monument here and as an example ! used a... This is' called a wood font type face. It comes from when we used to carve letters in wood. This is an old west font.- The horseshoe type...difficult to read. I Xerxoed this down to give it proportionage to scale. This type is actually smaller than this but it's much easier to read. The other issue on the monument sign that [ saw was the element of type of signage. It would seem to me that the City would do itself better to use the symbols as an easier read and then reinforces the type. I've reduced this more to the shape breakup, the wall...sight line. $o that 'this actually... Workman: What is that leaf made out of? Jeff Farmakes= Well ! envisioned this as being like a copper farina. Green with like a wrought iron black frame. Workman: I was thinking rust or something. Jeff Farmakes: Well we had the concern about the... Workman: See that beast speaks of the more conservative nature. I'm seeing this thing and not this big. Horn= ! think we all liked the wall concept. We had-trouble finding some other structure that would blend in with this. This, I like that. 3elf Farmakes: This would eliminate the stuff behind it. The read.h~re would be any...stop lights would be anywhere from stationary to 60 mph. The image would have to be assessesd quickly. This is taller than this. You would get a greater sight line readout with this, for the distance. You'd have more read before you get to the type, to identify. Rise, what Housing and Redevelopment Authority July 23, 1992 - Page 6 pulis your eye to read type? Usually it's a.n image of some sort. McDonald's uses it. They use the big M first and the McDonald's is smaller. Images are always easier to assimilate in outdoor situations where you have about 3 seconds to grasp what it is... The other issue is, it seems to me that an image also offers some more scale... Workman: I think for me, and boy I.tell you, the times that we've tried to. be artists here frightens the beck out of me. But to me that speaks more of a, you notice it but it's not so obvious that it's not gawdy. And that's the kind of thing I like about Chanhassen. We're obviously here but we're not .... Jeff Farmakes: This is a modification however of this design. The facade is changed somewhat. It's a little shorter. There's a little bit more weight around the type. It's still a semilcircular design and as I said before, it's not the landscaping plan for this is not relevant. I'm dealing with this through a signage issue. If you read the copy, it's breaking this out into concept problems with identity. So it's backin~ up even before the monument sign which is really not the major purpose that I did this. ~ Bohn: What's to prevent kids from playing on top of the wall? Jeff Farmakes: Well the wall would be slightly taller than this. But they'd have to be pretty tall kids. Bohn: The top one is a lot shorter. Jeff Farmakes: No, this is relatively not that much shorter. It's just the centerpiece is a little higher. Workman: The thing is, I'can't imagine I think we had that discussion before, a kid, many kids playing there. Stopping or even. Jeff Farmakes: Well the difference that you're talking about between the two is this is roughly to scale. Workman: How tall are they? Jeff Farmakes: This is not a scale plan but it is relevant to-this scale, which I'm not sure, this is 60 feet wide. So this is a little shorter and a little taller to line this up here. If you have'a ruler but right now it comes to about there. And so you've got that much. Workman: So it's about 6 feet tall though, the bottom' one? Jeff Farmakes: It'd be closer to 7 by the time you got to the top. Gerhardt: The original concept was 6 foot Jeff Farmakes: Again, what we're doing with that is...does anybody want to see any of this? These are how other companies manage their identity, and it can be done quite simply. Housing and Redevelopment Authority July 23, 1992 - Page 7 Horn: Could we get Don to make copies of that for us? If you could. Well thanks a lot Jeff. We've been struggling with this for quite a while. We haven't really come up with anything we like. Any other comments or questions of Jeff. We really appreciate your work'. It's refreshing to see something we like on this. Chmiel: Price is right, thanks. Increase his Planning Commission pay would you please. Ashworth: Mr. Chairman, if I may. I have not seen the diagram as it would deal with the Pauly/pony/Pryzmus area. Todd was just kind of describing to me. I think that he has presented some very good ideas and we should follow through on those. The timing is not really overly critical from a standpoint that the last lease in there is July of i994.' So it's not as though you're going to rush out and do something really tomorrow. One of the driving forces in the decision is going to be one that deals with the location of the library and I think that will become more of an issue quicker than the actual construction itself. What I would propose doing is taking what Jeff has presented and making additional copies. Taking a look at the thing. Hopefully having it back as an agenda item for the HRA for your next meeting along with again some type of discussion regarding-the library itself. Horn: You do want a quicker decision on the entry monument correct? Ashworth: Yes. I'm hoping, recognizing that Highway 5 is in the process. of being tore up. The bank is going up. Now is the best time to-carry out some form of construction. We would still have time at this point in time if we made a decision this meeting, next one at the very latest, to complete plans and specifications, have a primary 'structure complete and be in a position to buckle the thing up, meaning landscaping and what not in the spring of '93 which would pretty much parallel then the opening of the rest of the development area. And again I have not seen what Jeff has presented on that entry monument area so. ~ Horn: Well, let's pass these concepts to the business people here too. I'd like to get their feedback on it. I think our general comments are, the consensus is we like what we see. Any other Visitor Presentations? UPDATE ON BOWLING CENTER/CONFERENCE CENTER/1-1OTEL A, RE.~. Ashworth: This item was on your last agenda just as a way of back drop. I think that we've done an excellent Job within the downtown area in terms of putting together parcels to allow for redevelopment of basically north side of 78th Street. Market Square is now in place. Americana Sank is going up. I'm not sure what will happen with Target but you've kind of given guidelines as to how you want to see tha.t developed. The last piece in the puzzle is really the back side of the Dinner Theatre, the bowling center properties. We presented plans as to how that might be accomplished. How that might meeting the business needs as well as cities. The HRA generally liked some of the things that it saw but wanted to see additional cost estimates as to what all of this would cost and how it would fit together. In an effort to do'that, we did, staff did go back through and generated cost estimates for each of the elements. But rather Housing and Redevelopment Authority July 23, 1992 - Page 8 than simply presenting this is how much. it-costs for this item or another, we looked at it in terms of saying, let's try to set general goals for what . we're trying to accomplish. We have objectives here that we're trying to read, instruct, hopefully then come to agreement, yes. These are the objectives and then have staff go back and see whether or not those cam be met. So in that process we started to lay out what we thought we were hearing as far as some general goals. We've treated all of this as though it's a house'of cards. So that if any one major player in. the process does not become a reality, literally the entire house of cards falls and within, as we're trying to build this overall structure, there are a lot of elements associated with each floor. Each particular component. Each wall in there needs to be structurally sound if it's going to hold the next floor so again, within let's say the bowling center proposal.. If part-of that goes awry, it potentially could effect all of the others. Some of the things that we had presented before regarding the bowling center was reaching agreement with the owners. If we could literally purchase that for $550,000.00 to $600,000.00 area. The necessity to be able to audit the books for that facility to ensure that the City was able to recoup any type of expenditures it made within a 3 year timeframe. Some of these may slip off of Target but at least if you set where you want to get to, it's much easier. Where noted in there reach tentative agreement, not deal killers as to leaseback. What I'm talking about is the recognition that... (There was a tape change at this point in the discussion.) John Dorek: ...replace it with new equipment, we'd be over $1.1 million. And the balance of the equipment being purchased such as the, everything in our equipment and so on, makes that price a very good price, And if you could buy it let's say. If that is what you were asking. Robbins: No, I'm Just curious about the valuation of the "equipment" in terms of whether it's, that includes the flooring. Is that the mechanical or does it include everything. You say it's bowling has to do with the flooring, whatever. John Dorek: It includes everything. I haven't had any offer. Or I haven't seen the offer. Horn: Is that your resale value or'replacement value? John Dorek: The replacement value is what I quoted now. Horn: Okay, what would resale value be? John Dorek: Resale? Horn: Right. If someone were to come in and buy that. John Dorek: We've been pricing the entire building and business at $1.5 million which is, the market isn't good now but that's a fair price. Compared to others in this area being sold. Robbins: Without the equipment in there, assuming Just the building. What's the market on that building? Assuming it was not a dedicated use Housing and Redevelopment Authority July 23, 1992 - Page 9 .. building for bowling. We just had the building, what's the market-on that bui ldi no? Ashworth: You've got 40,000 to 50,000 square feet. The MGM building Just recently sold and that did sell at $60.00 a aqua're foot. Robbins: And what ts the number of square footage in this building? Horn: 40 to 50 he said. Ashworth: So you're at. Horn: 2 1/2 to 3. Ashworth: Well, with the equipment in there. Horn: You said 40,000 to 50,000 at $60.00. Ashworth: With a specialized use like this where you're saying that that wasn't in there, it was the whole area. Clayton Johnson: What's the assessed value? Horn: That's inflated anyway in this city. Clayton Johnson: Probably... Ashworth: Well at one time I think.they had it for about $1.59 didn't they? Gerhardt: I think it's down to a million. John Dorek: That's the building. Clayton Johnson: So that's $20.00 a foot assessed value. 50,000 feet, a million dollars. Ashworth: Again, I think that a fair value might be $1.2 to $1.5 million but I see the HRA acting almost kind of in a bankruptcy type of a position where the current owner, if he could get $500,000.00 out of it, he would accept it. Horn: Any other comments? Does the HRA generally agree with the goals presented? Wot kma n: No. Horn: Which ones do you disagree with? Workman: Well I guess I don't know yet what the time line ts on all this. I do believe the basic concept. I know we've talked about the library concept. In 1994 in July when the last lease is up over there, it doesn't seem like a long time for me. It seems like we should be planning now so that when they tear it down in July of 1994, we're ready to go. And so if Housing and Redevelopment Authority July 23, 1992 - Page 10 that is 2 years from now, believe me we could fair that away like that. This program, are you saying 3 to S years? Ashworth: No. I would hope that by our next meeting that I would be in a position to come back saying, all of the owners are in agreement. We've met the objectives and here are the details associated with that. Within 30 days following that, to enter into the specific development agreements and construction starting, spring of '93 would probably be the best bet. Horn: I guess my perception is we're a little ahead of ourselves if we're going to set a time line before we know, we've even got a concept. Workman: Well I just got it from the memo. It said a final decision will not be made for a 3 to 5 year period of time. Ashworth: That deals with...second phase of the development, area. $o the first phase, we would be moving on immediately which would be the conference center section including pool, racquetball,'meeting space, escalators. Space going up to the hotel. Our construction would parallel the hotel's construction. We're guaranteeing that we're building our portion. They're guaranteeing that they're building their's. Second phase may not occur for 3 to $ years. ~ Workman: Well, my kids will be too old.' My-perverbial kids you know. Horn: That ruins the whole plan. Workman: All our kids. The community's children. That's what I'm... I guess I'd like to see it moving and it sounds .like you're saying it's going to and I'd like to see Phase 1, Phase 2 move as soon as possible. Ashworth: If I may add. We haven't heard from the business community tonight but I honestly think that each of the individuals, whether it be 'hotel, 81oomberg Companies, bowling center, Dinner Theatre, would like to have seen this happen a month ago. Or two months ago. They don't want to wait. Bloomberg has to make a decision what should we do at the back end of that, what's the old City building. They:ye lost a renter. It's money out of their pocket. If it's going to be converted into something else, they want to know that. If they need to make a commitment dealing with knocking down the existing .buildings and building the others one, they want to do that. The hotel people want-to know that we're for real and that this is an overall plan and I think that they would be willing to, they're ready to say that they're ready to do their part if we're-ready to make a commitment. And the bowling center, John has talked to me a number of times. They should be working on their fall schedules right now. They should be out pounding the pavement but he has no idea if the doors are even going to be open tomorrow. I think John would have liked to have.seen this done a month ago. Two months ago. I don'.t know where the agenda that you might like to hear their comments but I think I'm kind of paraphrasing what you might hear. Horn: Well I think it would be a little unfair to them to ask them to give us too much of an opinion on this tonight since they first got the presentation. What I would like to' see is that by next month you work with Housing and Redevelopment Authority July 23, 1992 - Page ii them to pound out some of these details and even as far as a time line. That's going to be dependent on their plans also. But hopefully by next month wa'il be in a very good position to have this thing pretty well along and more solidified. I think as a concept, what we're .seeing here seems to make sense and we saw that. Now we're seeing the beginning of a plan put in place. Obviously this is catching the business people cold but I think a lot of legwork has to be done between the next meeting. Between now and the next meeting to make sure Ne have a solid plan they can live with. If you have any general comments on this. you know' initial comments we'd certainly be open to them but we're not going to commit you. pin-you down tonight to say yes. I agree with every one 'of these goals. Yes Clayton. Clayton Johnson: Clark, maybe 'just one comment I would make is that I agree that right now it is a house.of cards but at some point in time I think that is the role of the HRA is there's going to have to be a commitment made that all of these things aren't intangibles. We really are pressed to proceed with the hotel project and I think what we're looking for is a commitment that Phase 1 is going to happen. The staff plan as I read it has a few little new wrinkles in it that we did not include in our plan and one of them is the tearing down of the rear-of the Frontier Building. I mean that was not considered in our plan. But I guess at least the commitment to do Phase 1 and sometimes that commitment means a commitment to condemn and I don't think it's unreasonable to .ask us, the Bloomberg Companies, to reach an agreement with you on the parcels that effect us. But I think other than.that, maybe at some point in time we're looking for a commitment from you that includes the threat of condemnation if that's what it takes to make it happen. Horn: I think we've heard last week that as a group we like the overall concept of what we saw here. I mean this is, we've had a -couple very difficult areas. This is one of them. Tbs heritage area is one of them. Our entry monuments has been one of them. Tonight things seem to be kind of gelling into something that makes sense for all of us. Any other comments on the concept? You had some concerns earlier? Robbins: No, it wasn't a concern. It was just on Don's and maybe Clayton's also stated too about the house of cards. It was just more of Just a general, because we know a house of cards, when the. cards fall the deal falls apart. It looks like there's some pieces here that have to alt pull together. ! guess it would just be a question if all of-a sudden halfway through it one of the parties says no, I've changed my mind. Wha~ does that do to the rest of it? Does it collapse the whole party or do we have to go around that or do we have to restructure the deal? I would just be interested about, not tonight but maybe at the next meeting. Making sure the players, what's the liabilities I guess if one party backs out. Horn: Other comments? Brad Johnson: Clark. The questions...answered, has he even authorized the purchase of the bowling alley? I. see that as the critical point of this whole thing. The rest of us are probably going to work with you. Horn: I think that's one element in the plan. We can't very well go ahead and authorize to purchase the bowling alley unless we've got a whole Housing and Redevelopment Authority July 23, i992 - Page 12 concept here to work with. Brad Johnson: And I would say that will take 2 to 3 months and then he's not going to be in business. That's how I see it. Horn: I guess what I'm hearing here is that by our next meeting, those kinds of issues are all going to be re~olved and-we're going to know whether we've got a plan or not. Brad Johnson: But the one element that we're missing is the authorization to purchase the bowling alley and nobody's here to represent the-bowling alley... Ashworth: Staff and maybe to some extent maybe exceeding authority but we have through our attorney, back to their attorney and realize that they had first approached us. So when we have made a counter position of the $500,000.00, we have done that on the basis of starting negotiations. Now if we get to a point where we feel comfortable in presenting that, whatever their counter offer might be back to the HRA, it would be at that 'point in time-that you would be authorizing staff to proceed. But at this point in time, we have no idea. They could come back and say, one million dollars and then the deal is off. I think it's important. You make the initial contacts. We continue to negotiate with them until it comes, down to a point where let's say we're close. Then ~e present that offer to the HRA and you make a final decision. Yeah, we. should gO ahead and authorize this for the amount that Don has brought back. Or no, just tell them that it's not going to work. Horn: Do you anticipate being in that position at our next meeting? Ashworth: Yes I do. Horn: Other comments or questions. Chmiel: I guess some of the concerns that I had were some of them mentioned, if you hadn't already done. 'Some things that you've mentioned and there still is a lack of that full tying us together. Knowing where business people are going to go. If they're going to go and whether they'll go. I know John's in. a very binding position, being with the bowling alley. Unfortunately, everything has to ~ork as ~ell as with his and I'd just as soon see that go, if it continues to go. But that's something I think we have to pull together and that you're going to do. Horn: Can we get a consensus from the HRA that if we can meet the general objections that have been outlined here, we' want to proceed? Workman: Clark, I'd like to better see a layout.of what exactly is Phase 1 and Phase 2. Ashworth: Phase i is that area on the map identified, let's see. Phase is, it's the first map. Horn: It says Phase I on the map. Phase 2 is over here with the community center. Housing and Redevelopment Authority July 23, 1992 - Page 13 Ashworth: Right. It's identified as lots. Horn: This is Phase 2. This is Phase Ashworth: Right to the right of Lot 6. Workman: The meeting room is part of Phase 17 Horn: Right. Workman: The bowling center is part of Phase Horn: Right. Wot kman: Cinema, Phase Hot n: Yes. -. Workman: Everything except what ts community center? Horn: Right. Workman: Okay, then my confusion 'rests with what then is this community center mean if convention/athletic facility is in Phase i. What's the community center in Phase 2? Ashworth: Well, and there's a lot of discussion that that potentially could go as a retail area but if you look at the configuration. Let's assume so that it does become a community center, the one little Jogged area. That's the two gymnasiums. Workman: So we wouldn't have gymnasiums in that first athletic facility? Ashworth: That's correct. And reduction the number of racquetball courts. There would be, I'm not sure. What was the other elements that were lost i n that? Horn: Other comments? Looks like we have a plan starting to form. Yes Richard. Richard Wing: Just as a resident, I certainly support this. Unfortunately the entire complex ~as done at a time when the island concept really was... $o I'm really enthusiastic about this and I'm really positive. I think the real danger...but I'm left with one question as it relates to the community center. We're talking about a new school going in with, it's suggested anyway with large athletic facilities. Pools and gymnasiums and whatever. $o I'm not sure how the new school might tie into the community center but the community center that we talked about, well there's two things. First of all, an enormous pressure for youth in the city. What are ~e 'doing for our youth? We want a community center. We ~ant a youth center. So on and so forth. Then I look at this and I see a real classy hotel and meeting space, restaurant, bowling alley, cinema. Ail things that I want to transit. Do business with but then suddenly, right next to it is a community center. Now if this is a class affair and a dome style Housing and Redevelopment Authority July 23, 1992- Page 14 center, I think it's compatible. But this is going to become the city's youth center, youth community center, then I get worried because suddenly now we're kind of mixing gas and water. $o my concern is the definition of community center. What are we trying to accomplish? Where's does it leave the youth and is this replacing the referendum that was turned down?. I'm- not sure. Are we still going to be looking for a community center somewhere else in the community? By City Hall o~ wherever it's going to be. Or tie it to the new school. What is the definition of community center and what's it's intended use? Horn: As I recall from last month, this was more of an adult type community center. Richard Wing: That's clear then to everybody? Horn: That's my impression. Richard Wing: Because I can see others coming out and saying wait a minute, we've been crying for some youth activities and youth center in the city and how come the HRA's got money 'for an adult athletic center and we're... What about the referendum for a community center? Are we-going to build this and a community center and a school or is this going to replace the community center that was turned down? Ashworth: If I may. One of the reasons that it's been drawn kind of as it has. The first phase would definitely orient itself to more adult activities whereas Phase 2, which would be closer to community center type of uses, meaning that the two larger basketball courts, it could be broken into the four additional locker areas that would' treat more of 'the family thing. Would be in that Phase 2. If in the meantime one of the schools develops in Chanhassen. I don't know which one. 'DiscUssions of a high school, middle school, elementary. And we were able to provide that expanded gymnasium space adjacent to that facility, then this area here truly could go as a retail or expansion on this other. If on the other side of the coin, the school option really doesn't work out and we're not able to put the youth component as a part of that facility, it could be developed on this site literally to the east of, what I'll call the adult type of activities that are being in this first phase. And the highlight of this first phase is really the conference center component which includes the auditorium area. It does have the pool along with it which-is going to be a very nice feature but it's primarily gearing itself to the business community in concert with adult type of activities. Horn: I think Dick the thing on here is the .key is the phasing type. Whereas the second phase we might not know today exactly ho~ that's going to develop and that may be more dependent on some of the other events that happen and what we envision today might not be what happens there tomorrow but it can be, it's got several possibilities .of options we could have depending on what occurs in the meantime and as Don stated, that would be a little bit longer term than the first phase. $o I'm not sure we could really be certain today what that's going to be but we do have options there and one of those uses should be compatible. Housing and Redevelopment Authority July 23, 1992 - Page 1S Workman: I guess.for me, and I hear what Dick is saying and I wasn't at the last months meeting but I was at the previous one when we initially talked about this at the Fire Station. I think it was 2 months. What was appealing to me and why I'm quick to support is because of some of those other useages. I find it very difficult to support an adult, or perceived adult only athletic facility and gyms. Gymnasiums. But what makes it appealing to me is that we can, if we got t~o gymnasium~ in a new middle school somewhere in town, it would do very, it would start to do something about the dent in the facilities that are lacking in this area. These two more would help but we could still use more. $o two gymnasiums don't fix anything. I've told the boring story about !'m a basketball official. I've been in every community and just about every gym in the metro and this town is lacking. More than any other community I've ever been in. And so if we're directing, I guess being the impatient one on-the Board, my feeling that we were going to maybe get some community useage out of a gymnasium instead of gymnasiums, with the rest of this is what was most appealing to me. I am interested in helping the hotel and I'd like to see a cinema and I'd like to have a meeting room which would maybe be used'by more people out of town than even in town but I thought and felt that the community athletic facility was going to be used for youth in the community and that was one of the reasons why I was supporting it at the time. I couldn't get away with supporting a couple of gymnasiums that were going to be intended for 40 year olds doing aerobics. I couldn't. Horn: You'll be 40 someday too Tom. Workman: I know that but we don't have, we just don't have those facilities in this town. There are going to be a lot of questions, asked about that. Horn: Other comments. Chmiel: Yeah, I 'd just like to chime in on that part of it. When I looked at this before, I presumed that this was going to include younger members of our community to provide them with those additional things. And ! think by Just having tendencies to keep this strictly to adults. I'm n~t in favor of that either for that portion of it. I think the kids need something within this community. I think this can be worked accordingly. I think that's where it should be. Horn: And i think the right scheduling typically goes with, John I'm sure is well aware of this since you tailor your programs to the times that they are applicable to different age'groups. Other comments J If not, I guess, do you need a motion from us on this or a consensus of where we're coming from? Ashworth: A consensus that you ~ould like to see staff meet with the owners and to determine whether or not the goals and objectives that we've set in here can be met. Horn: I think what I'm hearing is, that we'd like to-proceed ~ith that and hopefully by the next meeting have a general consensus so everybody involved in it that this is what we want to do. And we're certainly positive toward the plan. Our only reservation at this point are a fe~ Housing and Redevelopment Authority July 23, 1992 - Page 16 deatiIs that need to be worked out and maybe the fact that we're not sure that everybody's on this plan yet. 8ut if we can come back with that next meeting, I think we can proceed. UPDRTE ON THE HIGHWAY 5 ~ M~RKET BOULEVRRD ENTRY MONUMENTS. Horn: We're going to get Option 2 this evening for the entry monument plan. Ashworth: I don't know if it would be Option #2. From our meeting, and believe it was from 2 months ago, actually 3 to 4. months ago, I thought that we were close to. Horn: Excuse me Don. Did you have time to comment on the first presentation that we saw for the entrance monument and the library? Did you want to make comments on that before you leave? Herb 81oomberg: Well I think there have been some study on that and I think that some things are pretty obvious. For instance coming in on the, across on TH 101 there. The monument is so close to the ground that even the...and I think it's just one of those things you have to try to think again... And obviously we'd like something distinctive and unique. The possibility of getting some volunteer competition on this sort of thing I think sounds very interesting... Interesting publicity for the city and also...national basis. So ! think the suggestion is very valid. That if it can be done without a particular cost...let some of these people pursue it. Give them some encouragement and find out...national basis. I think that we've sort of lucked out. I think that the number, the $ Highway, to the south the way it's going to go to that hill. I remember when that was, the city when the highway department took it some 20 years ago and we felt that it was too close then because of...use that land very well between the railroad tracks and the highway. And as it tur~ed out that was a blessing because if they didn't want to do it because it would cost more. They've had to use more fill in order to get to the...railroad and so forth so they cut through kind of close. But now ! think that our view of out city as you drive through with the landscaping on both sides and so forth, is quite beautiful. And our approach for travelers comt.ng on number 5, that we really have an attractive city approaching from the west or approaching from the east. So I think...and I'm real pleased. I think this Highway treatment would be, with the lane on the side for bicycles and walking and all of that and the landscaping I thir%k is just a real, just a new type of highway here and it's nice that Chanhassen got to be .the early one in the Twin Cities. Horn: Thanks Herb. Ashworth: Mr. Bloomberg, would you be able to stay to listen or watch some of the films? We're going to put on a demonstration of what this might look like. Would you be able to stay to look at it? We're going to do a video of the entry monuments. Herb Bloomberg: Oh you mean you have something-now? Horn: Yes. Housing and Redevelopment Authority July 23, 1992 - Page 17 Herb Bloomberg: Oh certainly. Ashworth: I don't know if any of the other business people have left. You may be disappointed in that you're going to be seeing basically some of the same things that you"ye seen before but the primary purpose is to ensure that we get a feeI for the scale of the project and what it's going to look like from the highway. I've felt that from 3-4 months ago that we had kind of reached agreement. Yes, we... (There was a tape change at this point in the meeting.) Ashworth: ...the only thing I would ask you to consider in looking at this is, the recognition of the scale of the projects themselves and property is very low. So if you're going to be able to catch the eye of the passer by, you're going to have to do something of a relatively large scale. Whether it be some of the things that you're seeing. The other part of it was that, when I went back to Gins Bonsignoire who did the work through the University, she felt that maybe this is her faul that the thing .had gone down because she did not have an opportunity to, she was in the process of getting married. She was like 2 weeks before she was going to be married and flying back to New YoYk. She didn't get an opportunity to'put in some of the landscaping and the wall conditions that had been recommended before. And one additional point and that is, we had met with a firm called Macro Media and they do a similar type of presentation. Not as happy with what they have completed. Again that's the first one tha't you're going to see this evening will be the .work that was done by Macro Media. But it gives you an idea of what it is you might see as you come up to that monument area from the 4 different directions. $o it's a little different technology. Barry, did you want to.give any additional comments before we start? Barry Warner: Yeah, just a few things. We've been working with this collectively for about 30 months, to be honest. It seemed 2 l/2 years ago. is when we collectively started pursuing what Highway'5 would do as a downtown and try and provide some gateway elements into the downtown area from a realigned roadway. And ironically you're starting to see the, somewhat the fruits of your labor because the textured or embossed. concrete, the poured concrete that's going in in the median, will go io within the next 4 to 6 weeks. At the. same time, so will the clay bricks that are going in radius area. So that is, that's really in front of you. You look forward to that occurring. But I think there also comes with it a window of opportunity called, let's get this thing wrapped up. Let's get this thing done. The highway is going to be done this fall and that is going to leave at the intersections of Market and Great Plains a scar on those intersections where landscaping and some monumentation should occur. It's been my impression to date that the HRA has had several consensus that there should be some type of a radius wall. And there should be some landscaping. I think what we have to deal with here is should there be a monument of earth alignment, and if so, what should that be. This started some time ago and we went...and what's the downtown character now as well as in the future and I think Jeff also was trying to highlight on that to some extent by saying, let's look at the logo. And let's have some visual impression of the community that can be expressed that really makes a strong presentation. And I think if there's anything we have to come to Housing and Redevelopment Authority July 23, 1992 - Page 18 grips with in this meeting is to try and get off dead center. Try to come to grips with what visual needs you want to present...and let's'go with it. Because as I said, I think the window of opportunity is right in front of us right now. From my standpoint, I'd like to make sure that when that highway opens up...so that monume~tation is in place and when people see we have a new highway, they also have some very progressive entrances into the downtown. Not progressive necessarily in terms of being a contemporary expression but in terms of Chanhassen is.extending it's arms out to Highway 5 and inviting people into the downtown. So that's really where we're at and as Don pointed out, the visuals that have been prepared are to help us to visually portray what could occur. And if it's not what you're looking for, then we need to pose that tonight and try to go where we should be going as a group. So... Horn: Okay. I think we all agree with that. (There were problems with the audio during this portion of the meeting.) Barry Warner: Mike Niemeyer who is an architect from Campbell-Green who' also resides in the community, was planning to be here tonisht. You might remember there were two alternatives that the Council and the HRA had basically arrived upon some meetings ago-so the videos you're going to see tonight are two different impressions by two different video artists represent that more contemporary than the traditional monument. $o those are the two we're trying to take a look at. Ashworth: One of the problems I have with this particular one, they have not quite got the scale correct but the height...higher than it is wider. It should be wider... Horn: The other problem is, it's too close. I mean we should be getting a perspective from the highway. Here you're right there. Ashworth: One of the technologies...is to look at this from different angles. Move farther away and then back closer. $o this is like coming... Market Blvd.. As you're leaving Rosemount. That would be the, now we're west of the Market 81vd. area looking back to the east. You ~an see where the bank has just gone. in... Barry Warner: The only comment I'd have is, consistent with what-Don said. I think this computer visualization company made the monuments taller than it would appear. It is not in scale... Workman: Is it taller than this? Barry Warner: No. It's shorter than what it's appearing. I took a look at this yesterday and it looked to me like it was maybe...as they have portrayed it. In. reality... The second tape you-'re going to see is, as Don pointed out, the University's Computer Lab. $o they have'taken', they use a different technology. They take a single vantage point and then going in with an image. You'll see both different alternatives in here. Ashworth: They're limited to a singular location. This is basically what you had seen from before except again, Gina felt bad that she was not able Housing and Redevelopment Authority July 23, 1992 - Page 19 to take and soften it the way...These two are to scale...wall is about 6- 6 1/2 feet in height. The monument itself sitting behind that would be about... The lanscaping, the amount of tree conditions makes a very nice backdrop... It does provide, it's harder to see the.bank and a lot of the stuff behind the bowling center and... Here's the other one and I thought this came off quite well. I would really have been concerned with the material, especially to use something similar to the old City Hall. But Barry assures me that...aluminum or the vinyl type of siding, is that from a distance you really cannot tell any difference between that and like a cedar. Where some of the brace elements could actually be more solid... Workman: It appears as though somebody should be buried under that one. Maybe like a... Ashworth: Barry, did you have any additional comments? Barry Warner: I think that what we're presenting tonight are what Campbell-Green had shown as the two different images. We need, we're requesting direction from the HRA in terms of what your sense is regarding either one of those alternatives. 'Whether a vertical element should be continued to be pursued. Whether you like the'idea of a vertical element but these are not the two that you like. Or whether we should pursue the monumentation, the radius wall, taking into consideration Jeff's presentation tonight and droping the vertical element. So I guess direction is appropriate at this point and we'll certainly carry forth whatever your desire is. Horn: Well I'm not so sure that Jeff's did have a vertical-element to it. Just the circular vertical element. Maybe not quite as'big. Jeff Farmakes: Could I make a quick comment here? Horn: Sure. 3elf Farmakes: My major intent of showing you that was really to address the issue of identity. I'm sorry this is interferring with time schedules in what you're doing but it wasn't my intent to... I think this is just one facet of the problem, the monument. So what do You do on your new fire truck? What do you do on your water tower?. What do you do on your, there are a lot of different facets to this, different uses besides this monument. And then the question becomes what is appropriate and what is workable to use to differentiate... $o if you do it differently, a monument or you do it differently on the truck, and you differ too much', you're losing your overall image...to get back ~0 what you said. Yes, I do, there is a vertical element on there and I... Horn: You looked at yours was a maple leaf. This monument had a maple leaf in it also. Is that the type of identity you're looking at or is it how you present the identity? Jeff Farmakes: I would suggest...the maple leaf is unique.to us here... but it gives us an identity...the city stationary they use a sailboat. Sailboats are used in Excelsior...and Mtnnetonka. When. we use two together... But they're directing some of what I did here... Housing and Redevelopment Authority July 23, 1992 - Page 20 Horn: Well what's your impression of these? The two types of presentations of the maple leafs? The one that you have with basically circular versus the more striking vertical element. Jeff Farmakes: My first impression is...overkill. Simplify it but that's a personal opinion and I like the direction. The way he emphasized the issue of the type. That's what I was struck fi'rst...di~ficult to read, particularly if you have a heavier version that you use... The fact that it's there...it's Just difficult type to follow along the baseline... Horn: That's a good point because that's the thing I noticed about this first monument is. Chanhassen's kind of sideways, written uP the side which seems to me to be not very... Jeff Farmakes: Well let's a reinforcement. They have it horizontally. You can argue it as a piece of art but what you can't argue is how long it takes somebody to read type and how somebody reads type. There's a mechanical science.to reading type. And how long you have to read it, what' type of sight line it is and those are the things that you can't argue with. There are some types that are easier.to read than others. And there are different weights of type.- If you use a heavier weight outdoors, on stationary you use a lighter on. You have flexibility there-but when you're directing the overall image away from the type,... 8e it an M for McDonald's or a Northwest or whatever. It's the image itself and at least there's... Horn: Other reactions to the presentation. Either from the Commissioners or the audience. Chmiel: I'd like to hear the audience first. Right now. Horn: Dick, what do you, do you have an opinion on th~s? Richard Wing: Well I really, Jeff designed the flyer for our...his ideas for a 5 inch square... I've been here 30 years. To me chanhassen... I guess my only comment on the mondment is that,'to me'the trees are an intense part of the central plan. I'think the area and with foliage... natural background is a critical issue to the monument. And the trees kind of come around and...they don't hinder your sight line at all... It's very complex... Horn: Right. Any other? Herb Bloomberg: You more or less invited me to stay and see this. I think about, the thing 'that's gone on here for quite a few years is...events, occasionally a joke or different things and...comparison. I'm Just talking about the word attention. In seeing these couple of monuments, the one that strikes me, and it comes from an old thought I had many years ago. I like the one with the sort of a windmill, in it or something that would have a chance to be sort of a living monument. Something' that could be... decorated or emphasized seasonally...obviously you have the Christmas season. You could have...the 4th of 3uly or election time. So the people coming through would, it's going to be prominent enough so you can't miss the thing. I think that's very obvious that it be large enough so that it Housing and Redevelopment Authority July 23, 1992 - Page 2! would be seen. And I can say something in more of a skeletal frame-to hold it. I like the motion of the top...and introducing the maple leaf or whatever we're using in some sense. Haybe that was already in there but the idea would be the base then that you could use for, to give a story. And I think that the community has enough organizations at various times to contribute so that you have sort of a living thing that every, as you drive through people would really pay attention...worthwhile looking at...maybe give a little message. It could be of course electrified. Horn: Clayton or Brad or Jim? Brad Johnson: I would say actually Herb just right at the very end when he said electrified. I was going to ask Jeff, not to throw a wrench in. I think it should also be something that can transform from day to night. And I don't mean Put floodlights on it. And whatever the essence of this is going to be during the day, that it's somehow...lighting. Horn: Okay, commissioners. Robbins: I guess just on the, it would appear to me that throughout the theme of the town we've been looking more of the, should we say the gabled roof. The very traditional type of a building like the hotel is built. The roofs and then all of a sudden we've got a vertical monument that appears to be modern and it would seem to be, to me anyway, it appears to conflict with the theme that we're doing. I do'like the idea of the wall. ! like the trees. I like the word Chanhassen. Whether it be typed, that's irrelevant. I like the word on there. Whether or not we need a monument, a vertical, I'm not totally convinced of that. I don't necessarily like it. It doesn't mean it's not nice. It's just personal opinion. I.like the more of Just a nice rounded look and the maple leaf look and without going into the vertical spiral if you will. Bohn: I think the one that's all three of them. The one that impressed me the most is the one that Jeff showed us. I think it's the most plain with maybe a copper or a brass maple leaf. Workman: I do like Jeff's, after.looking'at them. It reminds me of the, Jeff. What's the material on which that maple leaf would be made? What were you saying, brass? Jeff Farmakes: Pardon? Workman: Did you say brass? Copper? Jeff Farmakes: Both. Put a fatina a copper to what's exposed to air. That could be commercially done. It could be really done. Ih could be fake. There's several different types of' material. It's basically kind of a bright, minty green. It's a natural green but it's the kind of green that you get when you, the roof on the cathedral in town. That's a farina copper. Channel 4 building has a farina copper roof. It's a natural color but it's not a dark green. Workman: One of the monuments that I'm thinking about that I find very, looks like very high quality, it's kind of stunning. Ii= you've ever been Housing and Redevelopment Authority July 23, 1992 - Page 22 the entrance of Deer Run. That heavy steel that's cut out of that steel. That deer. That's what I thought in that circle, because that deer is kind of jumping out of that circle. Jeff Farmakes: Well actua.lly I got the idea for the circle from Excelsior. If you look at the grates underneath the trees, they're in a leaf motif and it's a nice, kind of wrought iron imagery. Of course'it's nothing that you'd want to...but it adds a simplicity to it and let's face it. Our history here doesn't go back that far and it's simple and like our church. It's American Gothic type church. It's not a true Gothic. It's been simplified. It's Midwest. Not the type of cathedral that you're going to see out in New York. It seems to me that that sort of reflects more of the history that we have here. Workman: I guess the green kind of, I guess I'm looking for something that, in my mind is more natural looking. More of a darker red or darker reddish rust. Rustic looking, like that Deer-Run. Chmiel: Well the farina I think is right on 169. That new church that's at the intersection just prior to 169 splitting off. Workman: The Wooddale Church. Chmiel: Yeah. On the side there. And that really depicts the fatina as to what their tower is. And what Jeff.is saying too, with that green and with the black or whatever around it, I think would offset-and really give that a real neat looking appearance really. The only thing I don't know and it's per scale as to what that would really look like. Those vertical elements, I've never been really too enthused with either/or. And as Tom has said, it looks like you should have someone else there underneath the bottom of it. And then I started thinking maybe a little bit with that big vertical element with the maple leaf' in there, no pun intended, putting all these service peoples names on that. Those who have died in respective wars. Maybe that might, have something ~or us but, it's just something that came to my mind as to what it tells me. It almost looks like the wall that they put up for the Vietnam people. And to me it's not warm. It's cold. It doesn't give me that appeal that I'd like to see. As Barry said, let's get off dead center with it. I don't disagree with it but I guess from what I've seen, I don't like. What I've seen tonight with what Jet~f even showed me last Sunday, I do like that particular portion of it. And I think if we're to pursue something, I'd like to see us go in .that direction. And I don't disagree with what Barry's saying either. Having a taller structure to beckon to those people. I think with this being to the heights as to what it is and with the wall .going up as shown, I think that that has a lot more appeal. Horn: Okay, well I'll be the first to admit that I'm no artist but I did, Jeff's rendering tonight is the first thing I've seen that I've been really excited about. And I think we have a consensus from this body that that concept is something that at least appeals to us. We recognize the need to get moving on this. However, I think some of us are a little bit cautious based on maybe somewhat of a lack of enthusiasm ct~ how our clock tower turned out. But I do like 3elf's concept. I think that's'what I heard from all the rest of the Commissioners up here also. Housing and Redevelopment Authority July 23, 1992 - Page 23 Barry Warner: Mr. Chair, might it be appropriate that we would take Jeff's concept and come back with an illustrative site plan and a series of illustrations...of that. We'll try to take that basic premise and expand on it. From a dimensional standpoint make sure that it's... (There was a tape change at this point in the discussion.) Horn: ...meets your needs as well. Would you be open to that Jeff? Jeff Farmakes: I'll volunteer. I'll be happy to serve on whatever. Horn: I think that's a good-idea. Jeff obviously has a better taste for these things than any of us do. $o I think that's a good suggestion. Jeff Farmakes: One thing that I want to make sure that you know, that type of approach is far more subtler than,, because this isn't shown to scale up here. These are much more monumental approaches. Just so you know that. Barry Warner: Well one of the things that we try to do in coming back to you is preserve the future such that if at some point in the future the City decided that a vertical monument was appropriate, that we had allocated space for that so that you could revisit, it at some future time if something new showed up on the horizon you felt appropriate with. And we take that into consideration so that we didn't pin ourselves into a corner and we couldn't back out of it. Horn: In my mind the best vertical monument you can get is a tree. Jeff Farmakes: And this is a more subtle approach.. It's not going to have, like I said, you're going to' see the tree, depending on which angle you're at. The trees behind it. $o bear in mind that's obviously, you double that...that's 14 feet or 12 feet. It's not going to be 35 feet. Horn: Okay. I think we have a consensus and we agree Ne need to move forward on this and get this done. I like what we saw. ¢ONS~DE8 APPRO¥~ OF THE H~ F~%CILITY PU~SE ~%G~EEMENT. Ashworth: The HRA had actualiy approved this back in February and as we moved through the process, actually obtaining an Abstract, there were two areas that came out that I felt very uncomfortable with that I did not feel had been relayed by myself to the HRA and it was because I didn't have knowledge of it. That was, if there was an option in the Brown lease providing him the option to purchase that portion of the building that he was basically, currently leasing. It'd be after a $ year period of time. That type of a condition in there, that type of agreement in my own mind severely restricted our long term ability to control that propertyl And accordingly, the last several months have been spent, in terms of negotiating with Mr. Brown, or basically informing Brad that I did not see that this could move forward if that stayed in place. Brad has negotiated with Mr. grown and at this point in time Mr. grown is in agreement that he would release his option to purchase. The second thing that really came out in the review was that for both Mr. grown and, I forget the other party in there. Housing and Redevelopment Authority July 23, 1992 - Page 24 .Horn: Toll. Ashworth: Toll, did have a long term lease agreement. 20 years. That's not necessarily bad. I mean that kind of guarantees revenue streams and can assure you that the property will continue to make money for you. However, that's a position that in my own mind was different from what had been originally presented to you, the HRA. If the HRA believes that you want to do something with that property ~ithin the next 3 years, $ years, 10 years, then we should not go ahead with the agreement to purchase. If on the other side, the primary goal is to be able to control what occurs at that property, and again the property is extensive. It's got a lot of frontage on TH 5. There's a strong possibility that as an absentee land owner, and I'm not talking about Mr. Curd. I'm talking about potentially some other purchaser coming in. You can be assured that that individual is going to want to use the primary assets that they have which is the highway itself for advertising. And I mean you're going to have a Winnebago repair sales. They're going to line the entire highway with Winnebago's or tractors or whatever it happens to be. $o if the primary objective is basically to control the property. To landscape it in conformance with what you want to ensure that what you see along the highway is what you want, and you're not anticipating knocking the building down within some period of time, then you should approve the agreement as presented. -'The actual purchase price is dropped from what'you'd previously seen which was at I think $837,000.00 to about $725,000.(>0. Mr. Johnson is present. He's aware of the fact that, well again I congratulate him for getting Mr. Brown to give up on his option to purchase. Again, if you approved-it, it would be subject to again Mr. Brown executing that document. He is also aware of the fact that I felt the necessity to ensure that HRA members knew that the last time it ~as presented, we had not discussed this long term, these long term leases. I think Todd, you were mentioning. Anyway, if we end up having to buy our way out of those leases because we decide Ne want to knock the building down in a 10 year period of time, it could be ver~ expensive. It could be quite costly to us. Horn: I don't think that's ever really been in our plan. Ashworth: I don't think so but I wanted to make sure that you knew that they were there. Horn: Any comments or questions? I think we're in a much better position than we were before. I think this is really ~ood news. Get this thing moving along as we have. Any other comments or? Chmiel: Just a quick question that I had. If someone were to come in and acquire that property, even other than ourselves, are'leases honored from one point to the other person? Brad Johnson: Yeah. Chmiel: Upon purchase of that property? Brad Johnson: Yes. Chmiel: Why? Housing and Redevelopment Authority July 23, 1992 - Page 25 Brad Johnson: When we sell property it's like a deed. Robbins: It's law. Brad Johnson: When I originally brought this in, I Spent 4 years getting' long term leases. Chmiel: Let me ask another part of that question. What if that property owner wanted to do something other than that and wanted to do some expansions of their own to put their own business in? That's the reason why they'.re purchasing that building. Brad Johnson: Well that particular building has 18,000 square feet and 7,000 of it has long term leases and the balance have short term leases. We've been trying to set it up that way. The banks and everything from a financing point of view require long term leases because they want to make sure there's financing. You know there's s.omebody in the building. Just the reverse of what we're trying, so you've got a catch-22 kind of situation. Just like you would have to, you'd have to buy out the lease. These leases renew every 5 or 10 years. It's not as if they go on for, people's lives do change. People get divorced so whether anybody will be there 20 years or not, you're not sure. I think when I presented, I was going to say this. When we presented this, we were glad we had the leases because we felt from a financial risk point of view for the city, we had limited it. And the reason we were presenting it to the city is one, if you wanted to use it for a city purpose in the future, you have about 10,000 square feet there that you could use you know. If you wanted to do some boat repairs or something like that. Number two, what was number two? Oh, we really presented it because' I felt that, especially remember the Highway $ corridor came later, is that I was at wits end trying to accomplish some of the things you guys wanted to accomplish and the people upstairs. Because it was going to cost another $80,000.00-$90,000.00 to accomplish, at a minimum, what you'd like to see happen to that building. And the way the financing is set up, you can't get the money for it. It just turns out, the owner here is getting a very good return if you look at it. He's up around 20~. 20-25~ retur'n in equity which is what you're going to get and that's not bad in a 3~ and 6~ interest market. But he needs some cash like everybody that owns real estate does and can't put anything more in there and we can't find any financing. $o he says yeah, if you can get me what I have in it, which is about what we're talking about, that would solve his problem and then we'd turn around, or the city and fix it up you know and do the landscaping.. We've got a plan that they like upstairs. We don't have a signed plan yet which we have to work through with you. And it probably looks like a nice building. It'd probably disappear you know. But the problem, and that's why I did it. And later on, if you want to sell it some other time, it's fixed. You don't have to hang onto it. It's a very good building. It's on~ of the best building, and probably the best cashflow, from my point of view, in the whole town. Other than the new medical building. Chmiel: How many years of that 20 year lease are done now? Brad Johnson: Three. And the 15th year of this mortgage, the building's paid for. The first S years you're paying off $100,000.00 worth of Housing and Redevelopment Authority July 23, 1992 - Page 26 mortgage. I mean it's not a bad financial deal. Horn: Charlie, you had a question? Robbins: I guess just what Don's statement is. Do you demolish or' do within 3 to 5 years. I'm not sure we can answer that. You know today. don't know that answer. I don't know whether I'm going to make it home tonight let alone 3 to 5 years what we want to do with a building. So the point is that, let's say if we're going to do it within 3 to 5 years, we should not, or if we do it within 10, we should. Whatever. !'m not sure, we don't know that today. Brad Johnson: Well, it'd probably be cheaper~ if you're going to demolish it, it's still cheaper to buy it today. Robbins: So that's one statement. And the other is, is it'really the intent of the HRA to be a landlord? Because I think I mentioned this to Todd too. And Brad, you're aware of this. True, we've got leases and true we've got cash. True we've got everything coming in but does, it cashflows but what is the net receipts after the year? I mean do we make a lot of money? It is short money? Is it small money or is it. Brad 3ohnson: I think they presented that. Robbins: What is the money? Brad 3ohnson: It'd be about $25,000.00 cashflow plus initially $10,000.00 principle payment so you're $35,000.00 on it. Robbins: $o we basically net us, the landlord basically nets out $25,000.00 a year? Brad 3ohnson: Yeah. Plus the payment on the principle on the loan. And currently you're investing at about 8~. I mean you've got to remember the City is investing money all the time and this'is a much higher yield t~an you're doing right now. And you could turn around and sell it if you didn't want to be a landlord p~obably at a profit or two, but you'll have accomplish the other goal which is what really I came here about was to try to fix up the outside because it ain't going to happen in the next 3 or 4, 5 years. Horn: My answer to your question is no, we don't wa~t to'be landlords and as soon as the plan we see is in place, we'll get out of the landlord business. We're only being a temporary landlord to... Robbins: I Just bring that up is all. Brad 3ohnson: Yeah. I think you could Sell this building in a normal real estate market, very quickly. Okay? If you wanted to. Chmiel: I wouldn't mind being a landlord 'if' we could get this in our general fund of the city. Brad 3ohnson: That's what we're trying to do. Housing and Redevelopment Authority July 23, 1992 - Page 27 Ashworth: Those dollars would go there. Brad Johnson: That's where they go. That'is what we're trying. That's the other subtly of this whole thing. Workman: They have to don't they? Ashworth: No. Chmiel: Not necessarily but you can put them in.. Horn: Nell you know, it's an interesting concept because the traditi.onal ways that cities have had to make money in the past are just not there anymore. You almost have to get creative in getting ways to generate money. You know obviously we have the obvious way of raising taxes, which is not terribly creative. But if you can get into some of these other things that supplement the city funds, it's going to benefit everybody. I don't know that this is the right thing to do but obviously if the payback is better than we're getting on some of these bonds and things, it seems to make sense. Chmiel: Some maybe. Some maybe not. Ashworth: Well the other thing is, we have reached agreement now with Taco and so that will not go into court. And he has agreed to move into the Market Square property. The status of the Red-E-Mix facility, I think that that probably will go into court. But.the bottom line is, the city, HRA will have a lot of property ownership to the east of this facility. 500 to - 600 feet, some of which being fairly wide. And the only way you can get there is literally through this particular parcel. I'm just convinced in my own mind that if we did not approve this today, sometime within the next 5 years, you would be condemning that property and it probably would be from an absentee owner who was not as friendly as the current seller. I mean Mr. Curd is trying to get out of the property with some semblance of the original dollars he put into it. I think if you put a Mr. Labollo in there and maybe you can come up with some other names. That they're not going to look at that in a similar fashion. In fact, they may very well look at it. I think I should go ahead and purchase that Property because I know at some point in time the HRA or City is going to need to purchase it and at that point in time, they'll have you over the barrel and I think we've been there a couple of times.- I really'think you should do it. Workman: I move approval. Horn: Is there a seco nd? Bohn: Second. Horn: Further discussion? Workman moved, Bohn seconded that the Housing and. Redevelopment 'Authority approve the Purchase agreement for the Hanus Property as proposed. ~11 voted in favor and the motion carried. Housing and Redevelopment Authority July 23, 1992 - Page 28 NORTH H~[GHWAY 5 FRONTAGE ROAD CONSTRUCTION. CCKJNTY ROAD ~.7 TO HI6Fa4RY 41. JOINT POWERS A?aREEMENT WITH STATE OF MINNESOTA. Ashworth: I told Todd that, at the beginning of last week I said boy, this is turning into the Don Ashworth show for this next HRA meeting. We've had a number of real big items this evening and !'ye been very happy with the actions taken through the first part of the agenda and I'm anticipating, or I'm hoping that this goes well as well. We've had additional meetings with' the Highway Department in regards to the north frontage road construction project. And I have been quite surprised at really their openness. I mean they have literally said, well let's do this. To actually get it done, and so it would become a part of the main line construction. So when Highway 5 would be built, the north frontage road concept will also be built. What they are asking for is for us to put together a letter that would outline what each, what would be the responsibilities of each of the two parties. We're making a big commitment tonight because if you authorize that letter to be sent in to them and then they turn around sending back a letter saying alright, we'll agree to those points. We'll PUt that into a fdrm of an agreement for your signature. Well, it's ~oing to be hard to turn back at that point in time. They are buying into the expanded green area which means a lO0 to 200 foot, 200 to 300 foot distance back from Highway. $ that would Just be natural. They agreed to the additional plantings in that area. They recognize that at areas such as at 117, that the frontage road would actually swing further to the north to ensure stacking distances and so you'd literally be purchasing like almost all of the mings Golf Course. They would build the frontage road itself and pay for that as a part of the Ice Tea dollars. They would carry out the acquisitions for the property all the way through there. They would carry out the inspections and the engineering associated with the project. They are very fearful of going through the Lake Ann property. And it recognizes the funds...standards but anytime that you become involved with taking of lands that have previously been acquired using LAWCON or federal recreational dolla-rs, you're going through a real nightmare in terms of trying to get sign offs from every agency agreeing to whatever it is that you're proposing to do. They would propose construction of that north frontage road project from Audubon out to TH 41, and actually would be willing to carry that further east up to the Lake Ann property. But they would seek our agreement that, well I mean that would really be it. They would hope that the City would carry it from, and I think we have to, from the west side of Lake Ann back over to 17. Horn: East side. Ashworth: The west side of Lake Ann Park back east to 17. And again it just simply recognizes the federal regulations and standards that you'd have to go through. They're convinced that if we would look to having them construct through the park area, that the. environmental assessment worksheet that was previously completed on the main line roadway itself, would have to be modified to include this and it would actually delay the main line construction of Highway 5. We assured them that'we do not want to stop the main line construction of Highway $. Horn: Don't give them any excuses to stop anythi'ng. Housing and Redevelopment Authority 3uly 23, 1992 - Page 29 Ashworth: I initially felt that we really had a strong support in terms of the bridge concept and 8ill Crawford was one who kind of bought into that. 8ut there again, they've got some rigid standards. Some of the things that they're really concerned with is the decking that's associated with that. Constant maintenance associated with that as Nell as the member, structurally portion of the bridge itself and they're very worried in that area. They've come back with a request for us to consider and that would be a modification where they would install, they used to. go with these 12 x 12 foot culverts and that would then become kind of a pedestrian underpass. Well 12 x 12 feet, especially if you get it' 50 or 100 feet long, there's no way that you're going to go in one of those. 8ut they're looking to a compromise and that is, a 34 foot arch with a 12 foot height. And I think that that could be, I think that it could really look just like it were a bridge and it'd actually carry a wall section across the front of it. And for practical purposes, you would think that it is a bridge. You would not realize that it's really behind what you see as this bridge construction in front of you is in fact this arch so I don't think that that's bad of a concession. They'd be in agreement to actually install 'that. There:s actually a double installment because you do have a split highway so you're talking about two bridges. In this case, two arches. Second one that, well let's see. I made you aware of the fact of Lake Ann Park and the bridge. Was there a third one that I think was a little 'different than the, oh. This actually can work back to our favor in terms of monetary input back from the city because they would actually put those dollars back towards what I'll call the local share and that is our agreement that Park Orive would become a restricted right-in/right-out. 'That they would not have to look to signalizing that particular intersection. I think that that's good for the community. I mean the fewer signals that you can get by with, the better and that's one instance where it wouldn't be 'needed if the north frontage road concept is in fact in place. Where people to the west traveling eastbound would get off at Audubon onto the north frontage road and come into the park. And in a similar fashion, they'd have the choice of going back out that same way or taking the free right and going back west. Similarly, if people from the community who were on the highway or maybe even on the other side of the highway, traveling west on 'Highway 5 would have a free right into. the park property. Whereas on the way home, they would take the north frontage road through the Eckankar property back to 17 and then to whatever point. Whether it be south of the community or back into the main portion of town. Bohn: Wasn't that originally when that was proposed, that was supposed to be shut off? Park Drive. Horn: There was concern. Ashworth: I remember that Commissioner Horn was on the City Council at that point in time. There was a lot of discussion as to the desireability of that signal and it was more or less presented as though it has to be' in there because there is no other option and my recollection is at that point in time, you were fairly opposed to seeing that signal going in. Horn: You mean that turn? Ashworth: Well a signal at Park Drive. Housing and Redevelopment Authority July 23, 1992 - Page 30 Horn: Right. Ashworth: Having it as a full interchange and therefore full signal. Horn: I objected to having a road come out to the Highway 5 and what we had actually talked about was at the time that 17 got signalized, that that might be closed off because it does interrupt the flow. Ashworth: But without like a north frontage road concept, you don't have any alternatives. Horn: Right. Ashworth: I'm very pleased with it but again it does represent, if you authorize staff to prepare a letter back to the State that would represent that here is Chanhassen's commitment to, not only the roadway but the north frontage road and that they agree to enter into an agreement that would incorporate these points. I think they'll approve it. It will become then just part of the project. We don't really need to look.to anything more. .It's a done deal. Horn: Well that's great. I think you know we:ye honestly, we're very sensitive to traffic movement here because we've suffered in having under rated roads for all these years. And now it's becoming especially Pressing with all the construction going on. So I"thtnk we have to be, we're in the prime position to be leaders in having a traffic pattern that works because we've been on the other end of the stick for so many years. Workman: You know Don, to the west of Lake Ann Park there, the red house, isn't that a Kerber in there? Chmiel: Yep. Workman: And this road would pretty much be going through their. Ashworth: Their house. Leander I believe. Workman: Are we notifying them? Are they aware? I've talked to her before and boy, they don't feel too safe getting mt on Highway $ at that intersection believe me. So maybe they're thinking that they'd like to move anyway but maybe those are some people, if there's some people and some carcasses that are going to be left along the way, we should maybe be giving them advance notice.' Ashworth: I do not know about Leander. I do know that the owners of, I'm not quite sure why the City didn't provide like a life estate for the elderly woman that owned what was the Lake Ann Farm. There was a little exception that was-left right adjacent to the highway which is where the existing residential house is. But under this agreement, the State would agree to purchase that and turn that property back over to the city. And that particular owner favors it and has written and asked. Workman: Yeah, I remember that discussion. Housing and Redevelopment Authority July 23, 1992 - Page 31 Ashworth: Wot kma n: Chmiel: Wot kman: Chmiel: But I do not know about Leander. Is that Leander, the red house? Yeah, ! thought it was a Kerber. It is. Leander Kerber. Horn: That's got to be the worst place in the world to get out on the highway because you're just past the stop sign when people are up to full speed. Ashworth: The sad part is is that farmhouse, they run a daycare facility out of there. I can't believe sending your children into the house there. It's got to be dangerous. Chmiel: Have we contacted those property owners on that no~th side informing them as to the positions that we're taking with considerations ol that north service. Excuse me. We're not calling it a service road. We're calling it a boulevard. Ashwo~th: Arboretum Boulevard. So yoU 'Te- asking that staff do that? Is that what you're saying? Hot n: Yes. Chmiel: Making them aware. Workman: If we approve this, we'~e not ~eally bound to anything? Ashworth: No, but I think that we would be embarrassed if the State sent back a lette~ along with an agreement with all of these same points in there and then we said, well. Horn: Changed our mi nd. Ashworth: We've changed our minds. Workman: Well that can happen but it might have been appropriate' fo~ us to maybe let them know so they could have been here. AshwoTth: Maybe before we put this back out, maybe I should go .ahead with the letters to those owners. Chmiel: ! think we should. At least making them aware. AshwoTth: See if we heat anything within, if I basically don't heat anything within 2 weeks. Horn: OT personally try to contact them. Housing and Redevelopment Authority July 23, 1992 - Page 32 Ashworth: That was kind of one of my questions. Ne 'know Leander and Mr. Grabrielson but for the most part, and Hr. Pryzmus. A lot of those are absentee owners. There's subsequent purchase agreements with like what I'll call a major developer. Horn: Well see I'd be more concerned about the home owners. Chmiel: That's my concern. What's in and adjacent to what's there.right now. I think the vacant land that's there, I'm not too concerned about. Horn: It's one thing in a business situation but it could be more upsetting if your home is being moved out from under you. Ashworth: So what about like Mr. Gorra? He lives back 2000 feet. Chmiel: He should be notified as well. Horn: He should be notified but I mean he's not going to .be effected like, I mean he's not going to lose his house over it. Chmiel: Give him a safer access into his property. Norkman: I mean are we officially mapping? I mean we're not really officially mapping here. We're kind of' laying a concept out. Ne're not really binding anything. Ne didn't need to have a public hearing. I would think Mr. Gorra would find this an enhancement to his property. Mr. Gab~ielson, probably not. Leander, probably great you know. (The taping of the meeting ended at this point in the discussion.) Workman moved, Robbins ~econded that the Housing and Redevelopment Authority authorize staff to place each of the detailed potnt~ pre~ent..ed in the Barton Aschman letter of July 14th in a letter to MnDot as commitments of the HRA/Ctty if they would agree to those same-conditions, and would include the north f~ontage road construction in the main ltne Htgh~ay 5 construction project, and to notify the residents llving in that corridor. All voted in favor and the motion cazried. APPROVRL OF BILLS: Workman moved, Chmtel seconded to approve the Bills dated 6-22-92~ All voted in favor and the motion ca,tied. Workman moved, Chmiel seconded to adjourn the meeting. All voted in favo~ and the motion ca~rted. The meeting Has adjourned. Submitted by Don Ashworth Executive Director P~epaTed by Nann Opheim