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1991 11 21CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING NOVEMBER 21, 1991 Chairman Horn called the meeting to order at 7:30 p.m.. MEMBERS PRESENT: Clark Horn, Don Chmiel, Tom Workman, Charlie Robbins and Jim 8ohn STAFF PRESNT: Don Ashworth, Executive Director and Todd Gerhardt, Asst. Executive Director APPROVAL OF MINUTES: Workman moved, Robbins seconded, to approve the Minutes of the Housing and Redevelopment Authority meeting dated October 17, 1991 as presented. All voted in favor and the motion carried. VISITOR PRESENTATIONS: Horn: At this time on our HRA agenda is the Visitor Presentation. If anyone has an item they'd like to bring before us tonight that's not on the agenda, you may do so at this time. Yes. Randy Schultz: Mr. Chairman, good evening. I'm here to address the HRA for just a short request. Let me introduce myself. I'm Randy Schultz with the Americana Community Bank. As I'm sure most of you know, we are. planning to open the new banking office here in Chanhassen and we had previously addressed this authority earlier this year and received your blessing on the building design and the location that we are contemplating constructing our office at. As most'of you I'm sure know we're looking to construct the office over here on the Outlot A area of the Market Square development. The reason I'm here tonight though, to talk to you about is we are nearing the end of our option date on that property with the Bloomberg Companies and at the present time we're trying to decide whether we should be exercising our option at this point or whether we should be looking at an extension of an option. We are talking with the Bloomberg Companies at this time about those possibilities. If our negotiations with them are not successful we are, we would like to talk to the HRA about the property that you have and talk to you about it's possibilities down on 79th Street I believe. What I'm here tonight to do is just tell you that and to let you know that we may have an interest in that property. We would be, if that came to be, we believe that we would be constructing basically the very same building. The one that you have seen before.-It would look roughly like this and it would just be located on that westerly area if we could work out some agreement with the HRA. What I would like to request of the HRA tonight is just to ask you to, if that comes to be and we think we'll short notice know whether we'll be contimuing with the Bloomberg Companies on that site or whether we'll be working with them on an extension or what we'll be doing. If it turns out though that we feel we have to look at a different site, we'd like to have your city people work with us on putting together some type of a purchase' agreement on some property that you have down there. That's all I'm here tonight for is just to address you about that possible subject. Robbins: Some questions. In terms of that parcel, as you know at one time that was designated. I shouldn't say designated. At one time Crossroads National had owned that property so at the time it was bank sited.for that Housing and Redevelopmen Authority November 21, 1991 - Page 2 so I'm speaking personally. I'm not speaking for the rest of the members but I would think would be appropriate for the use of the land anyway for that. Secondly, how fast would you be acting the process to get the ball rolling? Randy Schultz: If we do not reach an agreement with the Bloomberg people about continuing on the site we're looking at, and if we could reach agreement with the HRA on terms for some property, we would construct just as soon as we can get the necessary approvals..By that I mean the approvals through the City. We have all our regulatory approvals. Robbing: Todd, has the land been platted back t'o one unit or how is the land platted now? Would it be parceled off again or what specific situation with that? Gerhardt: Right now the property is platted, into two lots. We have the one Crossroads was going to buy. That's roughly about liO,O00 square feet. I've had discussions with Randy in the past and he would rather have approximately 70,000 square feet rather than llO. I mean it's a 3 month process through the city. He'd have to go through the city site plan and review and in conjunction with that you could do a replat. But it is approximately a 3 month process. Horn: I don't think we're in a position tonight to act on your request. The position we would take though is we'd be willing to hear a proposal if it came before us but we're not in-a position to commit anything tonight in terms of what we want to go forward with. I think what we need is for you to complete your negotiation process and if something doesn't come about on that, then come back and talk to us again but typically on Visitor Presentations we don't take action. Randy Schultz: No, we didn't expect the HRA to act on anything. What we would like to just have your, should I say your blessing on doing is to be talking to Todd if it comes to that and starting to work up and put together some kind of proposal for some property down there if that's what we feel it comes to and we would be wanting to pursue that. Horn: I don't think you need to come to us to do that. All' we would recommend is that you take the thing in the proper sequence and work on ~ your current negotiation. Randy Schultz: That's what we're doing. We would expect to hopefully get something worked out with the Bloomberg peopl~ in the very near future. ! Horn: We don't want to get into any middle positions on this thing. We want to take the things as they come. Any other action we need tonight? Randy Schultz: Okay, thank you. Horn: Any other visitor presentations this evening? If not, let's move on into the continuation of the public hearing for the central park concept. Housing and Redevelopmen Authority November 21, 1991 - Page 3 PUBLIC HEARING: CONTINUATION OF THE PUBLIC HEARZNG FOR THE PROPOSED CEHTRAL PARK CONCEPT PLAN. Horn: Is there anyone here tonight who would like to add their comments to the public hearing on our central park concept? Possibly if you haven't seen the central park concept and this is what you're here for, we could answer questions on that. Are there any. questions on this subject? (,Discussion between Don Ashworth and the audience was not being picked up on the microphone system.) Ashworth: ...City Hall is currently owned privately. There is a possibility of a 3 story Days Inn coming in and at that point in time the potential for ever having a central park... Secondly, City Hall has...by taking out the existing roadway and developing a park in front of City Hall literally ties City Hall... , Resident: What about... Ashworth: ...right now the library is squeezed into where .they are. Eventually the library will move out. They're looking...new location which would then open this entire lower level where we are here. Really...and at that point in time...This would be a back side to a.gazebo to do evening concerts in the park... ,I don't know if you heard the question. .How is this tying in with the future community center and is the thought of a community center still as a part of the elementary. I guess I would. respond right now it's not, I don't see it occurring in the near future but if it were to occur and if it were to occur in a similar plan, 'I don't see where that would hurt it. Resident: No, I think that would be really nice but I wondered if...had anything to do with this or was a totally separate issue. Ashworth: Totally separate. *Any additional comments? Horn: How about comments from the members up here? There' were some suggestions made last week. Have there been any further thoughts following up on those suggestions? Chmiel: At the last meeting. Total number of trees and things of that nature. Ashworth: That there were too many trees? Chmiel: Yeah. Horn: I think one of the other comments'was it kind of blocked out the view of the City Hall. Apparently this is the same plan we saw last time. Ashworth: It is and I can have them redo it. Just kind of looking at the expense associated with it. If we could outline what we didn't really like about the existing plan, maybe we could bring it back... Housing and Redevelopmen Authority November 21, i991 - Page 4 Horn: I don't think we need to totally redo this but there were some concerns at the' last meeting expressed about there being a little bit too much shrubbery and the fact that it really kind of hid City Hall rather than forming a vista to it. That it actually made 'just a sharp little corridor down the center to it. Those were a few of the comments that came out of last month's meeting. Ashworth: I think that Mr. Gowen had had...counted like 339 circles. Out of curiousity while I was out walking around one day...how many trees do you think exist currently in this area? I mean as far as, just kind of envisioning you know...all of this is...and all trees. How many trees do you think there is in there right now? Workman: 100. Ashworth: 129. It's sometimes a little misperceiving as to what you have there. I also did not like the way they have-this coming through the parking lot area. Also this back up'condition. I think some things we talked about were making sure that this parking area was isolated from any type of thru movements. That you didn't have children being dropped off here and running on across. Potential firemen responding to a fire call and potentially... Horn: I think we'd like to see, you know nothing to that grandiose scale but at least some renderings of some other options that we could look at. Chmiel: Just a blue line. Horn: ...public comments also last time was they would like to view what some of the other options were. All we've really presented is this one. Chmiel: I think the Minutes indicate much of those comments that were suggested as to what change should be. Gerhardt: I was hoping Mr. Gowen was going to be here tonight because I did make copies for him. That he isn't here, I will send copies. Horn: I gave him what we had in our packet last week but I think some of the other people in the public would like to see what the options were too. Plus I don't think anybody up here was totally comfortable with the final version that we came up with based on the initial comments of the initial versions. Is that fair? Chmiel: Right. Good assumption. ~shworth: But these were the earlier options that had been presented to you. Maybe I misunderstood what you were. I thought the direction was let us see what it is that was previously presented. Horn: Right and we also had some concerns with this particular proposal. Gerhardt: What you'd like to see is us to come'back with another blue' line similar to these with opening up the, realigning the road...and reducing a few of the number of trees? Housing and Redevelopmen Authority November 21, 1991 - Page 5 Horn: Right. And possibly something a little more substantial in the bandshell area. What we have hewe does not totally represent the initial bandshell concept. I think what we're looking for are a few more ideas than just this one. We have thrown out some of the initial, concepts but I think we could come a little closer to what at least the group up here is... Ashworth: If I may, I just asked Sary...in terms of the bandshell. Horn: I understand this is an open top. Open all the way around type of device. Barton-Aschman Representative: The Sketch depicts a gazebo type of structure that would have flexible panels so that it either can be enclosed on the sides, on the back or totally open. One of the discussion points that we have during some of those initial concepts is, .well what happens if we have a small performing group versus a larger'community event performing band versus the Minnesota Orchestra coming out for the 4th of July celebration and so on? I think the idea that we tried to settle on was flexible structure that would be able to respond to those different types of conditions. Horn: And that's acoustically feasible? Barton-Aschman Representative: I'll be honest, that's not my area of expertise. I would say that anytime you go to a "concert in the park" that you're going to have some acoustic problems. It"s going to have to be enhanced by a speaker system and so on. That's something that an architect or an acoustics engineer would have to work out some-of the issues on. Chmiel: I thought one of the issues that we looked at-was having that bandshell open completely. Whether it be small or large. Siring people the opportunity to sit down on the grass with their blankets or-chairs in any specific direction. With the incline that we had on the far end, which gives the theatre approach looking down, I thought that was some of the thoughts that we had. $o therefore I thought the entirety of the bandshell would be completely open rather than just putting panels in at some given time for a smaller production of whatever. Barton-Aschman Representative: I think your. initial assumption was entirely correct in that we felt, at least we heard the group wanting something that was flexible so that when a large event took place, people have a multiple opportunity to sit at a backdrop with that edge behind. The plaza that would be in front of City Hall and some of the larger open spaces especially for your 4th of July celebration and so on. The concern we also try to respond to is let's say you're-typical Wednesday band concert night we're going to have a much smaller group and you have some wind or something, it might be nice to have some panels to affix to the building to provide some shelter for the band and so on. That's where this idea of flexibility came in. Ashworth: I think you would need to do that. Like with the 4th of JulY, the big amplifiers and what they have associated with that band~ If they could not be protected, they would not have set up. $o I mean we need to Housing and Redevelopmen Authority November 21, 1991 - Page 6 be able to drop down one side of that tent and get them inside.. If I'm hearing Gary, there would be panels or something like that underneath this facility that you could pull out and put onto whatever sides the rain was coming from so that event could continue that evening. Barton-Aschman Representative: This is not, at this scale of the plan, some of the design objectives that you talked about here cannot be worked out. I think that they need to'be statements and revisions that you can give (a) a specific architect that's going to do that building to help you specify those things out. And if you want to pursue it, I would really encourage you to have somebody do some sketch plans to help you articulate that vision more. It's very difficult at this scale to I think provide you the level of detail that's going to satisfy that flexibility that I sense the group is looking for. Both in seating and acoustics and programming. Gerhardt: Is the location'where you expected it to be? Horn: Yes. We were always trying to capitalize the natural grade of that area · Workman: I think if the noise is pointed out away from the neighborhoods. Gerhardt: It doesn't have to be round... Horn: Okay. Well I think what we're saying is there are some adjustments that we'd like to see. We're hearing, the few comments we have gotten in seem to support that. Anything else on the central park concept plan. We'll continue to keep the public hearing open on this. Extend that process so if you go back next month, if you have to give it a little more thought, get some other ideas or you've had a chance to discuss it with your friends, bring them back with you. Thanks for coming. Ashworth: This past week ago, two weeks ago the bank, Chanhassen State Bank has acquired through forfeiture property up in the Near Mountain area .and it's part of that some major excavation is required. One of the optional areas that they're looking at for taking some of that di~t would be the site over here· I think if this property were to become a park, you really wouldn't have to worry about having clay, black dirt and then clay. But if it's to be used as'a private structure, then you cQuld move all the black dirt back. Put in clay and then put blacktop back over the top of it. My point is, I think from their perspective a decision doesn't need to be immediate this evening but 'I think they would like to know within some reasonable period of time if the City is going to be looking at this as a central park or not. Half the dirt they're taking in the Near Mountain area I think will go up in that area and the other half will probably be moved next spring. So we do have some time that they were hoping, that we will know within the next 30-60 or 90 days. Horn: I think we've gotten some general favorable impressions from it. It's a little disappointing we haven't gotten more public input on'this but I think we have some fairly uniform ideas on what we'd like to see from that area and I think as a general rule from the group, you're getting a. postive response. Not necessarily to this particular plan but to the concept. Is that a fair assessment? Housing and Redevelopmen Authority November 21, 1991 - Page 7 Chmiel: Fair assessment. Workman: I think, I don't know if I feel like we're getting ahead of ourselves without really knowing what the land acquisition, etc. is. That's obviously a major portion of the cost and if we're without knowing that it'd be very difficult to, you know that by.assuming that there's not an awful lot of people coming to the public hearing to give their input. Does that mean that they think yes to this project and then if they do, does that mean anywhere from a million and a half to two and a half million or whatever million. They also mean yes to and without knowing that I feel like we have a major piece missing here until we can figure out what that's going to be. Or do we know that? Ashworth: Did you provide cost estimates as far as the development of the park? Gerhardt: Tonight I handed out, in front of you were cost estimates for the schemes and at the bottom the preliminary concept also included the concept as you see...the 1.2, 1.4. Workman: But that doesn't include land cost? The Barton-Aschman statement says improvements estimated at between $1.2 and $1.4 million. Engineering fees and everything else. This estimate does not include land acquisition price, City Hall building expansion cost and associated building. Robbins: 8ut I think back to what Clark was saying. Are we looking at the concept of the plan? I think as Clark was saying of the concept of the park, that's one issue. As far as actually doing it, that's another issue. I think personally as far as 'the concept, I think we should continue with the concept and see where it takes us. It might turn out that because of cost we can't do it but as far as the concept is positive. Workman: But we're talking about moving fill in a relatively short amount of time or agreeing to do that. And until we know, I mean are we going to have the bank put fill on their own property? I guess they can do that if they want. Horn: I think the concept of fill is a little premature from where we are. If I can read where we think we are. -. Chmiel: I think we're going to require it no matte~ what gets done with that piece of property. It's still going to need ~o be filled. Workman: Yeah but it would be done diff'erently. Ashworth: It would be done differently. Chmiel: Oh sure. Workman: It seems to me that we could with the players in the room here figure it out. You know sometime in the next week or two to get that number out and then say this is it and make decisions. It just seems like that's such a big piece to be missing. We haven't really put our finger on that. Housing and Redevelopmen Ruthority November 21, 1991 - Page 8 Horn: I think that's really an essential element in the public hearing process. People need to know what we're talking about here. Ashworth: We will have that before you this next meeting. Horn: ~ny other comments? Chmiel: I was just going to chime in and say that was the reason why we decided to leave that open for, rather than closing the public hearing for a couple of months. Making people aware so they can come in and take a look see at City Hall. ~nd provide those comments. Workman: But that's where if they don't know the whole picture. Chmiel: Well we'll have the full picture. Workman: It would seem to me we should have that full. picture as soon as we can so that, then people can decide if 3391shrubs is worth it and a bandshell because we just, I really feel uncomfortable without knowing that. I'd love to do this. I'm not trying to 'be, right 'Todd? I'm not trying to be. It just seems to me if we don't have that, that Could be half the cost. ~nd I'm just thinking of all these people when we go ahead with this and what did that cost. It just, we should have it up on the table I think as soon as we can. Bohn: I have a question. Regardless ~f, this park may be built in 5 years. Maybe in 10 years. Whatever costs we get for doing those with the band shelter or anything else is going to change in 5 years. They can tell us it's going to cost us to do this park $1,400.00 and in 5 years it costs us $20,000.00. $20,000.00 more or who knows. Chmiel: Yeah. And you can go in phases on that and buy the property first if you feel you want to pursue with the project. And work it from that point on through. .. Bohn: Right. $o we won't know what the cost is going to be until the project's completed. Because it will be done over a period of time. You can't say it's going to cost this much money. In 5 years it's going to cost a hack of a lot m'ore. Workman: Well we can figure out the time value of money. I'm just saying those are very big components and that should be part of a public hearing process that everybody should be aware of. If we got this whole thing together with land acquisition and everything else and over 5 years it was going to cost $5 million and the public knew that, they might all-be running in here screaming, what are you out of your mind? But we don't know that so I don't know if we're out of our' mind yet. But we don't know. I have no concept as to whether or not the citizens of Chanhassen Will value it as much at $5 million as they do at $2 because they don't know where that is. And if there is a time element over 5 years, -then I think we ought to be able to calculate that out. Why this is going to take 5 years, I don't know. I'd rather see it done in 1 or .2 but I don't know that and I'm assumin~ as a part of the public hearing process nobody knows that yet so it's tough to figure out. Housing and Redevelopmen Authority November 21, 1991 - Page 9 Horn: To some degree you have to assume the prudent expenditure of money. The question we're really trying to get a handle on first of all is this concept. What people have in mind. Well obviously if you don't like the concept, it's not even worth pursuing how you would implement it. $o you might like the concept but as you say, you get carried away with it. Then you wouldn't like it quite as well but I think you have to assume a prudent application of that concept and what we're trying.to get a handle on first of all is does this make sense. Workman: Yeah, and I just think there can be more gain 'from discussion from the public if they had the full, as much of the full picture as possible. We should have a per square foot idea of what this building and what the land and everything else is going to cost. Maybe we can all go down to Filly's and figure it out here tonight. Horn: I think if you look at the extremes of the estimates you can get a pretty clear picture on where it's going to lie. I mean you know it's. going to be more than $500,000.00 and it's going to be less than $2 million. That's pretty much of a ballpark in this thing. That scopes it - out within a somewhat reasonable range of do you like the concept. Workman: Yeah. So then you're saying the land is going to cost us anywhere from less than $800,000.00 to $600,000.007 Horn: I'm just saying the overall' concept that they've scoped here puts it in that kind of a range. We're not going to ~;et it zeroed into much closer than that at this stage. Workman: No, no. I don't mean that. I'm not, that kind of precision I don't need but I haven't really gotten a fuzzy idea about what the.land and building are going to cost. $o when you add it onto the $1.2 or the $1.4. Between $1.2 and $1.4 million, where does it-roughly end up? Horn: I think staff has our request and will be getting more information as we continue the hearing process. Ashworth: We can get that figure back to you for our next meeting. Raw land costs are pretty well known. We've done enough projects in the vicinity to have a pretty good idea as to what raw land costs are. Chmiel: About a $1.50 a square foot. I just wanted to see two people ' raise in their chairs. Ashworth: And similarly the value of the building, we may be fortunate there because the bank has been in a lot of discussion with the assessors office during the course of the last two years as to what is the reasonable value of that building. So I think we can reasonably provide you with that. Workman: That sounds like it's sooner than later. And I don't mean to whine, if it sounds like I'm whinning. Horn: It does. Housing and Redevelopmen Authority November 21, 1991 - Page 10 Workman: I'm probably the youngest guy but I'm the most impatient guy and I'd like to see it done because I like the concept but let's get on with it. UPDATE ON MARKET SQUARE, BRAD $OHNSON. Horn: Speaking of which, let's move onto item number 3. Brad, do you want to give us an update on where we are with Market Square? I assume next week everything's moving forward right? Chmiel: Yeah, I asked him if he really had good news he'd come up walking smiling up to the microphone. Is he smiling? Brad 3ohnson: Mr. Chairman, members of the HRA. I am smiling. I think I've talked to all of you at least three times this week and we're trying to keep everybody abreast. My last conversation. Where we are in the financing process, and Todd can verify that because he's had an opportunity' to talk to the bank also, is that it's a slow process as we all have begun to realize. Where we are is in the process at First Bank. We've made it through their credit committee and the real estate committee and we're in a committee that makes the final decisions and we're not quite sure what that all means except we've had no negatives. It's supposed to be on the desk of the person to make the person yesterday and today we were, not assured but they thought they'd be through with it all today. I've been waiting to hear some negatives so we can react to it. I can't believe that with the amount of cash that we have into this thing at the present time and potentially through your efforts and some of our efforts · that we can't accomplish it. We just haven't heard any negatives and we're just, at least 3 times a day I make a phone call and 2 times a day somebody else is making a phone call down to the bank.- I think they're just waiting to give us the answer. Should something go awry, and I hate to be quoted, I don't think it will be a major thing because we can't imagine a bank taking this for 3 months through their staff and stuff like that and then find something that's a deal killer, at the last minute. Normally they find that right away. So we've been 'able to answer most of their questions. Todd you, the people who've been doing most of the research for them have been in contact with the city. We continue to get all the support we can possibly get from the city an'd I know all of you are as concerned and want to get this thing done. If we start to run into any problems whatsoever, we'll call you guys but we don't know what they are. That's kind· of where we are. We understand that the process is, should we get approval, it's a fairly short step to closing. Having never gone through a loan where they do all the work first and tell you here'S the money and that's all they tell you, I don't know how long that takes. I sure there's a week or two of paperwork to accomplish even at that point but our lawyer's calling us each day. He's all set to go. You know a lot of these guys don't have, this will be the first loan he's closed for 'a couple of years so it's Just a real thing. Charlte's in the business and he knows where it's all about and it's interesting. We're day to day. You're welcome to call me. I'm there each day and I talk to Todd twice today so far. It's I'd say at the most interesting. We're all set to go. Horn: They don't have any type of target date on when they'll give final approval? Housing and Redevelopmen Authority November 21, 1991 - Page 11 Brad 3ohnson: It was today. We've been going Friday to Friday. We had a snowstorm one day and something happened the next day and the next Friday so we're on this Friday. It was supposed to be Wednesday. It's really a day to day date. Remember I used to taIk it month to month. Year to yea~. Now we're down to hour to hour and day to day. We've got to go back to Lutheran Brotherhood. MinneapoIis First Bank has to match their Ioan pIan with Lutheran Brotherhood. We think we can do that-whiie we're trying to cIose the transaction. We have met a number of times as a partnership so we're prepared to ante up the cash that's required. I think it's a couple hundred thousand dollars to confirm everything for the couple weeks that they wait for us. The tenants are ready. I'mean you just wouldn't believe the-phone calls we get. We'll probably have divorces because of this and all kinds of things going on but we're trying as much as we can. Workman: Everyday I smell Bernie's wood burner in my office. Brad '3ohnson: Yeah, I got a call on that one today already. The good news Mayor is that they said on the way on the radio it's warming up next week · again so we're not in a deep freeze. We just have to-be able to make sure that we can cover up the footings when we put them in the ground and it's hard to do that when they're up in the air so we actually have to grade a little bit of the project to get it to be completed. We're really enthusiastic. Horn: I see I'm in the wrong business because'...day to day, I wouidn't be in it. Brad 3ohnson: No, you're in the right business. You're going to Hawaii for 2 weeks. You're in the right business. Horn: I could give a projected absolute date on that also; Brad 3ohnson: That's right. Yeah, our business is, that's'just the way it is right now. Nobody will give us a date Clark. Bohn: If you close say on next, or got word next Friday. Chmiel: Tomorrow. Bohn: When would the store be open? Brad 3ohnson: Well, I think right now we're going through a process, we won't be delaying much. We're still planning on July. Plus or minus 30 days. See no matter how fast we go at the present time, we can't pave anything until May 15th because, we found that out on TH 5 here. They'll shut down the blacktop factory and they'll turn the blacktop factory on sometime between April 15th and May 15th and it will take 2 to 3 weeks to pave it so we could never get any occupancy permits. We're lucky the roads are all in around it. I mean we don't have to deal. Chmiel: I think what they're saying is. basically construction will start immediately. The balance will follow accordingly. Brad 3ohnson: Yeah, and we're not sliding on the opening so'much. We're Housing and Redevelopmen Authority November 21, 1991 - Page 12 more sliding on when we actually start because we already gave up a couple of months because the minute we didn't start say 2 months ago, we lost a month or so during the winter because we can't pave. Had we had it paved, we probably could have opened as early as March. Horn: Looks like you'll be smelling wood smoke for this winter Tom. Brad Johnson: Why don't you buy him a higher stack. If you get the stack up above the building. Workman: Are you guys just waiting for the Chairman to leave town before we can do this? Brad Johnson: Yeah, I don't know. Hot n: Whatever wot ks. Brad Johnson: I'll go with him. He's going to my favorite place. I'll go with him. I haven't been married 25 years yet so I'll have to-wait. We' also give him congratulations because he's been married 25 years and he's doing the right thing. $o any other guestions? Horn: Any other questions? Brad Johnson: We're trying. Thank you. CONSIDERATION OF APPRQVAL OF THI~ ~¢/92 HOUSIN~ ANP REDEVELOPMENT AUTHORITY BUDGET. Horn: It sounds a little tentative. Bohn: Are you adding onto the hotel? Clayton Johnson: We'd like to. Yeah, in fact we've' talked with the lender. The only way it's really possible is if the current lender will agree to open up the loan enough to permit the additional construction because again the lending climate, %t would be very difficult to go out and well in fact it'd be cost prohibitive to replace that first mortgage. So we've just had preliminary discussions with the.first mortgage lenders to open it up. The problem of course is that the track-record of the hotel's been outstanding but it hasn't been very long. But the-partners have all expressed an interest in pursuing it and Lowell Bell is actively working on it. Bohn: How about the restaurant? Clayton Johnson: Well, if that plan were to proceed, then that restaurant would move down to the end. The restaurant would move to the end because in order to get 28 rooms in there, the restaurant would have to move to the cunrent Animal Fair location. Bohn: What does that do with the development of the property that you own next to the bowling alley, or besides the bowling alley?' Housing and Redevelopmen Authority November 21, 1991 - Page 13 Clayton Johnson: Really nothing. There aren't any current plans to develop that other than use it for existing...warehouse. Obviously if the retail demand is here, and it has been growing, then eventually we see another use for it but not as it is currently. Horn: Okay, let's move onto the budget. Ne have a presentation or do you 3ust want to get into questions? Gerhardt: Either or. I mean attached is the proposed' 1992 budget. A lot of the items are, with the exception of some of the promotional expense that the HRA had directed staff at the last meeting to look at the option of banners for the downtown area. What I've done is I've got a sample banner against the wall over there. I've also got two renderings. These are, we've got sort of an in house pick of the brochure I had for the banners that staff had liked. They came up with these two drawings. The size of the banner is, well you can see the gray tape outlined on that banner. It's 24 x 46. That banner., put it out in the light standard and there's only about 3 feet on the bottom before it hits ground. $o it's too large for our light standards. To give you an idea, I've highlighted in gray tape the size of the banner and they also said they could come in and redesign the banners that we like to these individuals here. Chmiel: Wouldn't it be too small then? From a distance to see and how far would you have to be away from them to really pick up? Gerhardt: I don't think so. I don't think you want to go any larger. When we were out there, the sight lines and everything and the way they are, if you want anything bigger, you're going to be blocking some additional views in those areas. Jerry Schlenk was also concerned when you go with the bigger banners, because of the light standards, you can't go any bigger. Chmiel: I know. I agree with the length that you're proposing but I'm thinking your width of it. Keep it the same width that's existing, or is that going to be proportionately out? Gerhardt: I think proportionately it would look a little funny. It'd'be short and fat. I mean these are proportionate in size. You don't want it too wide. Horn: We can get into that. Rather than getting into specifics of what our decorations would be, I'd rather get into more setting a target value for them. And I did have a couple of questions about the 1991 budget that might help me figure out whether it's appropriate for 1992. This capital outlay area we certainly have a little estimation problem. Also in the debt service. What are those? Gerhardt: A big portion of it came into relocation for the apartment people. That's the' $33,400.00. Other acquisition costs, the $30,000.00 deals with the Ted Ko~zonowsky piece that the HRA decided they were going to put the entry monument signs by the Holiday 'gas station. Horn: So what are you anticipating the $30,000.00 will be for next year then? Housing and Redevelopmen Authority November 21, 1991 - Page 14 Chmiel: The other acquisition costs in 19927 Horn: Right. Workman: They have to get me out of the Meadows. Gerhardt: Right. We're not, I mean that shouldn't be in there. That shouldn't have gotten carried over into there. We're not anticipating anything for that $30,000.00. Chmiel: From the budget that should be struck then? Gerhardt: Yeah, that should be zero.. Chmiel: Should be $15,000.007' Gerhardt: No, it should be zero. Chmiel: You've got 15 up above there. Gerhardt: No, again we're slowly adding office equipment back in the finance area. We're computerizing. We've hired Dave Hartley from Hartley and Associates in networking our systems. That means I could physically go from my machine and talk to 3ean in the back and get assessment, numbers or budget numbers without having to get up from my office and going back there. Accessing some of the files that the HRA has on any of the special assessment reduction programs. That sort or' any of the tax increment runs or debt analysis. Chmiel: So what you're saying basically is the bottom line brings that down. If we take that $45,000.00 totally off of there and it comes down to the total expenditures. Gerhardt: $15,000.00. Chmiel: Pardon me? Gerhardt: It would be a total of $15,000.00. Chmiel: Oh, you're saying the total capital outlay would be $15,000.007 Gerhardt: Right. That's all we're anticipating would be that additional computer equipment. Chmiel: Okay, so the bottom line then would be $232,700.00. Gerhardt: That's correct. Horn: This promotional thing, you're assuming doubling that based on the Okotberfest advertisements? Gerhardt: And the banners. Housing and Redevelopmen Authority 'November 21, 1991 - Page 15 RobbinG: A question on the banners. Why necessarily would that be totally within the HRA budget? Why would that not be part of the city's operating budget? Gerhardt: As a part of the HRA, the downtown, the medians and everything are basically owned by the HRA. You put a lot of cost associated'into those. It's the HRA's intent to try to promote the downtown. You buy the decorative lights. You have a lot of costs in association with maintaining that downtown area. So'that and the city just couldn't handle that dollar amount. Chmiel: I think it's applicable. RobbinG: So that's the argument then? Is that there's more money in the HRA than the City. Chmiel: You've got that right. Horn: I guess my feeling about banners and things, I think we need to decorate for the holiday season. I'm not sure banners is quite the permanent type of thing. My personal preference is more towards traditional type of things with the garlands and the natural green kind of look other than cloth banners that are going to .get ripped up and soggy and wet in the rain. And I'd probably just as soon not get into what they are from this group. I think we should allocate a certain portion to doing that and say that's a project that we want to have rather than picking whether we want a candle or an oak leaf or whatever on these thin~. Chmiel: Oh, I don't know. I think that adds a certain amount of festivity to it but yet it not only gives the appeal of it but it also says it to those individuals coming into the community. Gerhardt: The nice thing about the banners is you're right. They may get a little soggy but if you've been out to the public works lately, there's not a lot of room for storage ou't there and the banners, they roll right up. They fit into a nice little box. They don't take up° a lot of room. The garland, when you put it up, they get beat up. You lose t~ garland. After a certain amount of time they look very aged. Not to say that the banners wouldn't look aged but they clean up somewhat better than after missing a piece of garland or the bell's cracked or anything like that. When I go to my hometown, I mean they look old. Horn: I guess we should do something to decorate the downtown and I'm not going to really get into a contest about what it is. Chmiel: No, the other, if I could Mr. Chairman. HoT n: Yes. Chmiel: InterJect. Just one additional thing with these hanging picturesque banners. At different times as well during the year when we have other festivities going, you can get another kind of banner to be hung. for those festivities. Also welcoming people to the community. Housing and Redevelopmen Authority November 21, 1991 - Page 16 Gerhardt: You could have two themes. You could have a Christmas theme and a summer theme. Something that would promote Chanhassen. The Arboretum. Lakes. You know you can do a variety of things. Chmiel: In fact what I'd like to see us do if we were to go to that type of a banner for the summer time of the year is have a contest within the city to see if someone can come up with what a banner would look like for the City of Chanhassen. Horn: So our difference here,, this $10,000.00 is going, to be used for that type of thing? Gerhardt: That's correct. Right now you could get two sets for what I'm going to say is 100 banners for about that price. Horn: Any other questions or comments about the budget? Workman: Just add that I think some sort of light wraps 'and they tell me they have them on Nicollet Mall. Something like that. I'd rather go up with some sort of lights that would be on from 3:00 in the afternoon. Gerhardt: Jerry's buying additional lights this year and he's buying more. Workman: You know the wraps. Not the single string of lights. Gerhardt: Wraps? Workman: I'll talk to you about it. Horn: I'm content to let the elect'ed people decide what we put out. I'm content that the HRA funds that concept. So you guys go ahead and figure out what's going to look nice. Any other questior~s about the budget or discussion item? If not I would accept a motion to approve. Robbins: So moved with the corrections that's been outlined. Wot kman: Second. Robbins moved, Norkman seconded to approve the 1992 Housing and Redevelopment Authority budget as amended. All voted in favor and the motion carried. CONSZDER APPROVAL, OF ARCHITECTURAL SERVICES FOR THE SEN;[OR CENTER. Horn: I think we all got the staff recommendation on that. I certainly concur with staff recommendation. Is there any other.questions from the HRA members? Chmiel: No. I've gone over this too and I agree with you. Just what you said. Staff has taken time to go through each and being that they are as such, it appears to me that the lowest and ! think probably the best is more familiar with what we do within the community. Should be awarded, or have that contractual agreement for the architectural services for the center. Housing and Redevelopmen Authority November 21, 1991 - Page 17 Horn: I think we've gotten good service in the past from that group. Is there a motion to accept the? Robbins: So moved. Chmiel: Second. Horn: Further discussion? Robbins moved, Chmiel seconded to award the contract for the Chanhassen Senior Center to EOS Architects for a not to exceed figure of $10,152.00. All voted in favor and the motion carried. APPROVAL OF BILLS. Robbins: Fred Hoisington. Are we still involved with Hoisington? Horn: Apparently. Robbins: I mean...builder or was it BRW I thought we were.no longer with. Horn: BRW. Hoisington and BRW are two different. Robbins: But Hoisington is still active as a consultant? Gerhardt: Fred assists in a couple different projects. He does some of the tax increment work. Is a part of a redevelopment plan. He does some of the time tables. Making sure we meet with the counties, the school districts and some of the maps associated with some of the acquisition.of public improvements that the HRA is doing. Robbins: No other questions. Workman moved, Bohn seconded to approve-the Housing and Redevelopment Authority Bills for October. Ali voted in favor and the motion carried. Ashworth: Can I bring up an item Mr. Chairman? Horn: Yes. Ashworth: Ne are just finishing the budgetary process with the City Council. The HRA continues to be in a very strong financial position and that is something that is just going to continue to grow in the years ahead. Two things that I'd like you to think' about. Number one, we should be working to look at the long term financial stability of both' the HRA' and City. You've done this in the past as we had land sales. Those dollars have been dedicated over to what's referred to as the historic preservation district. That's insured the long term maintenance for our downtown area. It's insured that we've had monies to retool like the old City Hall and pay bills there. We're working to a better financial condition .in terms of insuring that we have improvements but the St. Hubert's Church, that we can take care of those. But any type of financing tools or mechanisms that we can look to which potentially will help the long term good ot: the city and Housing and Redeveiopmen Authority November 21, 1991 - Page lB potentially reduce our reliance on the property tax is something that we really should continue to look at. A good example is the ap. ar~meo~. structure. As a part of that, doll~trs are flowing back... ~ ~~' (The tape ended at this point in the meeting.) Bohn moved, Norkman seconded to adjourn the meeting. A'll voted in favor and the motion carried. The meeting was adjourned. Submitted by Don Ashworth Executive Qirector Prepared by Nann Opheim