1990 01 25 · REDEVELOPMENT AUTHORITY
.SETING
· 25, 1990
Chairman Whitehill called the meeting to order at 5:05 p.m..
MEMBERS PRESENT: Clark Horn, Tom Workman, Jim Bohn, Cliff Whitehill and
Charlie Robbins
STAFF PRESENT: Don Ashworth, Executive Director and Todd Gerhardt, Asst.
Executive Director
APPROVAL OF MINUTES: Workman moved, Bohn seconded to approve the Minutes
of the Housing and Redevelopment meeting dated December 21, 1989 as
presented. All voted in favor except Whitehill and Robbins who abstained
and the motion carried.
VISITOR PRESENTATIONS:
Brad Johnson: Mr. Chairman, members of the HRA. Tonight I'd like to just
bring you up to date. It's not in the formal part of the agenda today
because we're still working on the process of getting what we call the deal
together but I'd like to talk a little bit about the Hanus/Brown/Amoco
corner there and just bring you up to date. I've gotten a little bit more
further along. As I told you, I think we're dealing with a more hu~,an
lements in this particular case at the present time than we're dealing
th rear estate so I have to kind of weigh all the things as we're going
along but I thought I'd bring you up to date. To do that I've prepared a
letter you can read later but it will save... Basically what we're talking
about is the site... As some of you are aware, I've been working on trying
to have something happen on this site for some time. Basically that area
there which runs from TH 101 over to the current Amoco station. We have in
all these bigger pieces of property and yours are identified by tract
numbers. Number of pieces of property. Amoco owns part of it. Gary Brown
owns part of it. Lotus owns part of it. The Ministry of Light owns...
Hanus building, they have an option on it. Apple Valley and then the Taco
Shop which I believe is being purchased by the City. Part of it anyway.
The concept long term is to bring a roadway that would probably be a
private road rather than a public road because it's going to try to go
something on a public road. The setbacks...impossible and basically if you
ran a public road through here, you'd probably end up with development
stopping about right here. So we know a building to develop and therefore
...but by putting a private road in along the highway, along the railroad
tracks and connecting, I think I put the most recent version of the TH 101
interchange in there, with the TH 101 interchange. We probably create a
road that is fairly well traffic, at least for the...commercial uses and
retail uses on the site. All the surveys I've seen on traffic from this
particular portion of Chanhassen indicates that this is the highest traffic
point in the year 2000 for Chanhassen so it has a high value relative...
What has happened since last year then is that the Amoco folks have pulled
permit to build the new Amoco station. They plan on starting
~onstruction on that in April or May which creates the need then to
relocate at least Brown's service business. I'm not sure whether he'll
continue to operate. I'm not involved in that. That's the hu~,an element
Housing and Redevelopment Authority
January 25, 1990 - Page 2
of this whole deal. Continue to operate the service station itself or
As, oco takes it over. I think he wants to continue operating it as a gas
station and it will become a pumper. That creates a few problems with
access or what do they call it, egress out of their current car wash since
that would be coming across the new site plan for the Amoco indicates that
there will be a car wash there. Right in front as you come out of that car
wash, you'll be going right into an Amoco car wash and it will create some
kind of problems for Gary. In addition to that, he'd be out of the service
business on that corner and he's been trying to figure out how to do that.
I was approached by Hardee's to find a site in town for the Hardee's site
people and we proposed four sites. They concluded that the best site is
that corner without the existing car wash there and they're willing to pay
a reasonable, a fairly high rate for the land if we could figure out what
to do with the car wash. It turns out that Hardee's and Amoco have done a
lot of sites together where they have cross trafficing and thus we came up
with a plan where Hardee's and Amoco would sort of share a site. The car
wash would be eliminated and moved to a new location on the site toward the
rear and Gary Brown's service portion would be upgraded. I think he plans
on going into, being one of these tire service like Mr. Tire or something
like that. More of a bigger service center which the town definitely needs
and he would go into a portion of the Hanus building and purchase that from
the current owners of Hanus and then add on to it. As I look at this it
becomes a fairly complex transaction and so what I've done is been
spending, now that I know that I have the letter of intent from Hardee's to
what they do. They create, oh I also found out that neither Amoco or
Hardee's would be interested in applying for any increment to do their
projects. In other words, they're not asking for any assistance and so
that makes it possible potentially that the tax increment being generated
by those two facilities which will be in the million to million and a half
dollar valuation, new for that corner, to be used and to help in the
assistance of the redeveloping. In addition to that, Gary Brown says that
his new facility would be in the valuation of between a half a million and
three quarters of a million dollars that he plans on putting on that
corner. So it's my feeling that there would be generated by this type of
project in the neighborhood of $7~,000.00 to $8~,00~.00. I think I said in
the letter $6~,000.0~ to $80,000.00 of new increment and in addition to
that, the Hanus building currently is generating about 25 to 30 million
dollars of increment. All the construction on that site except for the
Amoco station was done under the new tax increment district so every dollar
that's being generated there is currently being captured by the district.
Originally I felt that we could probably pull this whole thing off just
using the normal 3 year assessment write down because I thought it would
cost around $300,000.0~. After meeting with the City yesterday, Planning
Staff, and hearing about what they would require in the way of engineering
and the engineering department, I have upgraded that cost by a couple of
hundred thousand dollars, and I don't think there's anything wrong with
that. They would like to see the site improved to a higher standard than
we had planned at this point in order to approve it as say a PUD. In the
letter I state that an~ if you look at that one handout that I gave you, I
can just kind of go through and tell you where, and like I say I'm not
sking for any decision tonight. I'm just bringing you up to date but
where we would need assistance to make this work correctly is that in order
to relocate the car wash that currently exists, we'll have to purchase it
Housing and Redevelop~.ent Authority
January 25, 1990 - Page 3
and then resale the land to Hardee's. That would be, the purchase of that
would probably be about $18~,0~0.~0 and I think Hardee's will buy the land
at $5.00 a square foot which is a very reasonable price for the land so
we'd have a net need there of about $130,000.~0 to get that portion of the
transaction done. I think I would need assistance, and this has more to do
with, we'd actually creating a private road through there but it'd be for
public use to acquire a tract for and that would then again be repurchased.
I just need some assistance in that area and I think that would all net out
to be exactly what it is but I put in there an estimated $70,~0.00. Don
and I have talked over a potential then. There are two tracts that we
would not be using at this point that are part of the Hanus property and
are under contract at I think a reasonable price for that area which is
$2.00 a square foot. That possibly the City could complete the purchase
then of Lot 6 and 7 and sort of hold it for redevelopment. We estimate the
value of that redeveloped would be in the area of $3.0~ to $4.~ a square
foot and as soon as something had happened to the Apple Valley or the City
could assure somebody that something would happen to the Apple Valley
situation, that that site then could be resold for an office building. As
a matter of fact, we've got a couple of people that have come to us
suggesting that but the minute they look at the whole situation over there,
they kind of back off. I might add that we've been in the process of
trying to sell the Kurver's property which is Site 3 now for 2 years and in
all cases, the people who are generally fast food and/or automobile related
have turned it down because the car wash is located where it is and because
.the current situation with car parking on the Amoco site, which will be
corrected with the new Amoco building being done. But they just said, they
didn't want anything to do with that even though it's a very desireable
site. So it's been turned down a number of tim...~s in the past. We probably
need some, and this is where I would probably need some, we would have to
try to, I mean I think all of you would like to see this area be evolved
into sort of a gateway situation where it looks nice as you come in and I
think we'd need some assistance in landscaping and things like that to
bring it up probably farther than possible. Even the planning staff would
like us to do extensive remodeling to the exterior of the Hanus building,
which from a renterlng point of view, it doesn't increase the valuation of
it all and those types of things we'd have to consider and I have not
estimated that cost but that would be part of it. We need to do some
exterior landscaping and there might be some other site improvements. I
have not cost any of this out. I've just said, after listening and I don't
think it's illogical to request it, that that were done. There are some
public improvements. That particular area has no storm water retention
ponds or drainage so when somebody comes in as a developer, they're going
to be requested if they do a major project in there, to completely put in
all new storm water. Sewer and water are available. That's the normal
kind of thing but there's no, it appears to be a problem with storm water
retention. Also, the roadway that we'd be required to put in would be
considered to be a major roadway within the community even though it's just
se~vicing the Hanus building because they perceive over time it will go all
the way through. If they want to have it as well as possible. There may
Obe some soil correction in there. I know there is some pollution
potentially in the Amoco site so we have to deal with that on all of our
sites when we're talking about that particular location. I don't think
it's a major issue but we have not got clearance from the EPA on that. The
Housing and Redevelop~,ent Authority
January 25, 199g - Page 4
total assistance would be about $4gg,ggg.gg to $6gg,ggg.gg of which you'd
probably get back in the neighborhood of $1~g,g~.~ to $2g~,~0~.g0 when
the land is repurchased for development. But that does put it out over the
3 year land right, the automatic sort of project in town. As I said, most
of that is due to what I perceive will be the problem of having to upgrade
that whole area with no economic benefit in rents to anybody. To a
standard that you might like. That's the information. I'll answer any
question. As I said, I'm not, I just need some guidance if I'm going off
in the wrong track or the right track. It will be a kind of fast track
because Gary needs to have his new store open by May, if this looks it's
going. We can do it in two phases. We can move Gary into the Hanus
building with an option to purchase that piece of property and then come
back through the process with the City. I'm a little worried though if I
don't have the ability to do the landscaping and stuff that I will not be
able to divide out his property and his intent is that he wants to purchase
it. In other words, the Planning Commission, another entity, is going to
require substantial amoung on the part of the developer of improvements to
that site in order to approve any land division which allows his to operate
the business if he wants to own the building. I'm not saying this
particular site plan is the ideal situation. As a matter of fact, we're
going through a process now to try to change that and enhance it and meet
all the requirements that the City may have. Any comments?
Horn: Are you saying that these site plan improvements are over and beyond
ithe normal ordinance requirements?
Brad Johnson: No. I'm saying that, yeah, I think they would be as a
matter of fact. Yeah.
·
Horn: So that's why they weren't anticipated?
Brad Johnson: Yeah, and I did not anticipate that for approval. See we'd
go in for a PUD and when you go in for a PUD, it's a good deal and a bad
deal. The good news is you can do what you want to do but the bad news is,
when you reach the Council, they say will what are you going to do for us
to do this? It increases the cost of the project generally speaking
because they're going to look for some enhancement. If it gets down to
trying to enhance the Hanus building itself, like it was mentioned that
we'd probably have to put a whole new exterior on it. Well you're talking
a lot of money.
Horn: Why would you do that?
Brad Johnson: I don't know. I'm just saying, those are the kinds of
things, and Tom sits on the Council and when we come to, on a PUD, you will
hear what are you going to do for us. Then I found out about storm water
retention which means we may have to put a pond over there and I don't know
where it will go. That type of thing. Those are my two concerns.
O Robbins: Brad, it shows a road there. The private access road. Currently
there's not a road there now?
Brad Johnson: No.
Housing and Redevelopment Authority
January 25, 1990 - Page 5
Robbins: If it's private access, is that saying that...
Brad Johnson: It's a public road privately owned. It would be like a
shopping cente~ where you can drive in and you've got different.
Bohn: Who's going to maintain it and build it?
Brad Johnson: It's to be built by the developer and maintained through the
association as part of the PUD agreement.
Robbins: So it's not a city controlled road if you will then?
Brad Johnson: It would not have to be but the City has indicated that they
would want it built to city standards which probably is correct. Okay. So
it'd be an equivalent of a public road. The only reason we put a private
road in there is that you just can't build anything in there and leave a
public road there. The setbacks. You see when you get into your
ordinances, your setbacks would just eliminate all construction past the
first pad in there. Therefore, you would have nothing to, let's say you
wanted to remove the Apple Valley concrete building and sell the land for
$4.00 a square foot to a developer. If he paid $20~,~00.00 or $30~,000.0~
to Apple Valley, they own 2 1/2 acres so you get back a reasonable price if
you got rid of them. But there'd be no way to build anything there because
the setback requirements would just eliminate a site.
Robbins: Now with the road in there, will that drastically change or
change the use of those lots or change the size of...?
Brad Johnson: Tremendously. The road as planned there would make that
very desireable. We're short right now for example of small office sites
for people to come to town who want both the visibility. There's a guy in
town now looking for a small office site and there just, you get down in
the half acre, acre where somebody wants to build their own building,
you've got to remember we only have 4 or 5 major landowners in the whole
community and none of them have real small sites that are really priced to
sell and that type of thing. I mean we're asked every day, we're searching
right now for somebody who is located in Chanhassen who may have to move
from this community because he cannot find a site to build a small office
building, The industrial parks are all big parcels and Todd there aren't,
what you're down to one left with bad soil?
Gerhardt: One left.
Robbins: The way it sounds then, like the Amoco situation will start
fairly soon?
Brad Johnson: They pulled the permit this week.
Robbins: So what about the timing for the rest of this to take place?
Brad Johnson: Hardee's would like to start. I mean I'm just saying, if I
felt that the HRA would support me. If I run over what I perceive the
Housing and Redevelop~.,ent Authority
January 25, 1990 - Page 6
$300,000.00, the 3 year deal, we would start the process through the city
immediately. As a matter of fact, Hardee's is back here next week to
discuss this. We have a signed contract which says they want to close and
start construction in May. I don't know if we can meet those deadlines but
that's the goal. I think as I said, when you deal with a person's business
like Brown's, he has to sort through a lot of different kinds of things.
think although he's known that Amoco's going to build a new store, he
didn't know when and he's just finding that out. As a matter of fact today
and I have not caught up with him. So it's just, I know he needs to move
and he wants to stay in business. I think this is a reasonable solution to
it and he does not have, he was thinking about buying the whole Hanus
building but because the car wash portion of it isn't easily retrofitted in
the building because they've got to tear all the floors out and stuff like
that, he's better off. It's less expensive to build a new building and
improve the type of car wash that he has. It would be one of those
upgraded ones where it will have more services and possibly the cleaning,
more automatic.
Whitehill: Brad, I would presume this dealing with the road, that it would
not have access over on the TH 101 side?
Brad Johnson: You'd have access in but not out. The way the current plan
is. It would be a right in off TH 101. It's in there right now. Not
immediately but when the Taco Store and the Apple Valley. You'd be able to
rive in and go right. Remember, in all cases 30% to 40% of our retail
market is Eden Prairie or in places like where you live Cliff. We've got
to make it easy for people to get in. Secondly, if they're going to go
into there to do things, why run them down 78th Street or over onto TH 5
when they can Just turn in and slip through there?
Whitehill: The second thing I was going to comment on is that this is a
difficult piece of property. If you brought it in from there, and you're
running your private road along the railroad tracks, this property, the
buildings will hardly be gateway type property because they'll be facing
for service that private road and so what you're going to be seeing from TH
5 are the rear portion of buildings rather than the front portion.
Brad Johnson: It'd be office buildings. It'd look nice I think.
Whitehill: And on the second thing with the, I don't know that we'll ever
solve the problem but again, for a gateway t.vpe buildings, we're talking
about a car wash. We're talking about a new filling station.
Brad Johnson: I think what we're talking about is kind of two sections.
You've got the fact that the Hanus building is there and what can we do
with it and that's the only area in town zoned for car washes. Okay? So I
perceive what you see as much as we can improve going west of the Hanus
building using current uses. I've seen things happening to the east of the
Hanus building more in what you're thinking about. I believe that's the
Oproposal that Fred has come with in his zoning plan would be that that
would be more office and what you'd have is a nice building along the road
and then parking to the rear of it as we perceive it. Right now that whole
area is zoned for basically the high use, highway, car wash kind of stuff.
Housing and Redevelopment Authority
January 25, 1990 - Page 7
And the proposal is to rezone the portion to the east of the Hanus building
and to a less, different kind of use. I think with the car wash there one
of the things we figured out is that we would want to, you can set that up
and buffer those with berms and things like that and that's what we're
talking about the site work. In other words, we already have a car wash
there and it can stay. As I said, I've been trying to move that property
now for 2 years and that's been a major problem is just the fact that it's
there. Not that it's not a good car wash and it has high economic value
but it has, the whole corner is the problem.
Bohn: Now with the road there, will the road be at the same grade as the
tracks?
Brad Johnson: If you noticed, there's a hill. You go up to the, no it
would not. It'd be higher. You'd go up a hill and then drop down back
over on TH 101. There's about probably a 6, 8 foot rise to the peak where
the back of the Hanus lot is there and then it drops off.
.Bohn: Now you're saying the road will be built though to city specs so it
will allow city emergency vehicles in there?
Brad Johnson: Yeah. They want it to be a 28 foot wide standard road with
curb.
OBohn:
So emergency vehicles will be able to go back there...?
Brad Johnson: Yeah. The reason you would do it as a private road, as I
said, is just the setback requirements.
Whitehill: Any other co~ents or questions?
Horn: Yeah I do. I'd like to get a breakdown of what the extras are that
apparently get this from a 3 year rate down to a 6.
Brad Johnson: Yeah, I don't have it. I'm just preparing you because I
thought I could do it with a 3 and I'm not sure I can. Okay, that's all.
Horn: Because it seems like what's happening here is the requirements from
one pocket in Chanhassen are being requested out of the other pocket. I'm
not sure that that makes sense.
Gerhardt: I think Paul just sat down, Paul Krauss sat down with Brad
yesterday and recommended some things that may be looking at dressing up
the Hanus building. I mean looking at it today, it needs some
improvements. The other question was regarding parking and the private
road that people aren't backing out into the private road that is designed
in there. We look at the parking layout in that area so it is safe for
people to go through.
oBrad Johnson: We don't have any problem with that. The one that I was not
prepared for was the storm water handling costs. I don't know what they'll
be. Now, back to what is write downable or what can be funded by an HRA as
public improven~,ents, site imrprovements, land write down and soil
Housing and Redevelopment Authority
January 25, 1990 - Page 8
correction so all those categories are things that an HRA is authorized,
right Don, to fund? So I'm just pulling things out that was. I would like
to keep the budget at that. We've got a couple parcels that you can resell
so ultimately you may look at, and as I said, Don and I talked about this
in concept but I don't know where the, you could buy those lots. but I think
they'd be resold. I mean I think you'd find right now, you may end up
paying x dollars for these lots and for everything else in there it'd be
about x times 2. These are reasonably priced and I have a contract so
there's no negotiations, just pick them up for whatever we were at. We're
just not interested in continuing to hang on to them and we'd like to get
everybody cleared out from a cash point of view so there'd be no mark up
from what our acquisition costs are on that and they're far more reasonable
than you know, what I think, if you ever wanted to do this later on. We're
not there to try to make a buck on that part of it.
Horn: I'd like to get a breakdown of those and get a response from the
planner to if those are indeed over and above current standards so we could
review that. And then make sure financially it equates to an extra 3'
years.
Brad Johnson: Oh yeah. I'm not requesting, I think what I have to do is,
see all I'm asking for is the way they've put it is to get this through
here, we probably have to venture $1~,~.~-$2~,~0~.~ in engineering and
planning to accomplish...
(There was a tape change at this point in the discussion.)
CONSIDERATION OF SERVICES FOR DESIGNING OF A FOUNTAIN, PRESENTATION BY
JERRY BAILEY.
Ashworth: ...deals with the centerpiece in the courtyard area out there.
It has water that's involved with the item. I don't know if you've seen
it but it has a little plastic tubing that sticks out which is where the
water comes out of.
Whitehill: You want to donate it back is what you're saying?
Ashworth: But maybe if this item could be tabled for this evening. It's
not an urgent item.
Whitehill: Okay, we'll move onto item 3.
CONSIDER APPROVAL OF DEBT SERVICE ANALYSIS/PROPOSED 1990 BUDGET.
Ashworth: This item has gone over a couple of meetings I believe. In
back is the proposed 1990 budget. I might note that the one item that
looks like it's way over is in terms of special assessment payments and
Othat's simply a recording type of an issue. The debt analysis report that
we go through each year shows the special assessment payments as they come
from separate funds as actually transfers out from this fund over to the
particular funds that are paying off the debt associated with the special
Housing and Redevelopment Authority
January 25, 1990 - Page 9
assessments. So in fact you are not, this is not a new item where it shows
the $545,~0~.00. That amount truly has been and continues to be a part of
your overall revenues and expenses associated with the HRA. It's simply a
matte~ of where those are recorded from. This past year in working with
the auditors, Jean found it easier to be able to actually make those
payments by a check during the course of the year rather than doing it as a
transfer at year end so that's why you're seeing the difference in how
that's recorded. I won't go through the... It really comes down to one
page tells kind of the whole story where the HRA sits in terms of beginning
balances. It continues to be very strong. Increment projections in
comparison to proposed expenditures. Not only development payments but
other pa~,ents there as well. We picked out the 1990 timeframe as the time
where potentially the HRA could look to closing out the district and as you
see, the last line there is the amount required to deffise all debt and
between that '95 and '96 timeframe, you basically are able to again deffise
all of the outstanding debt. I'm having Dave MacGillvarey of the
Springsted firm take a look at, it's not shown there now. We're getting
more of the details but the bonds of 1983. They carry a relatively high
interest associated with those. I think they'd be prime candidates for
refunding. What I would propose doing is pushing a portion of the debt out
which will actually, the net effect would almost be a zero in terms of you
would gain interest earnings by taking 8% and 9% debt and replacing it with
6% to 7% but by adding debt onto the back end of the schedule, you'd be
increasing the overall interest cost. The net effect of the earnings minus
Ithe additional costs would then become a zero. What would happen in an
instance like that, and again until I can get that back from Dave, it's
difficult to kind of describe it but it would enhance your cash position by
about $400,000.00 to $500,00~.~ per year for the early years. The one
thing that that would do is there has been discussion at the Council level
in terms of a desire to see a reduction in property taxes and one of the
ways that that could occur would be by releasing. You could either release
parcels, which we've discussed before or during the course of any one year
you could declare a surplus during that particular year. By declaring a
surplus, and it would appear as though you could be somewhere between a
$500,000.00 and million area. Under state law that would go back down to
the Carver County Auditor's Office. They are responsible then for
distributing that back to school, city and county. They do not distribute
to the miscellaneous districts as would normally occur as part of property
tax calculations. Those a_~,ounts then would again be distributed back to
school, county and city. That would be one method by which the HRA could
continue to reap the benefits that are associated with having a district
such as ours by really being able to have those 100 cent dollars instead of
the 20-30 cent dollars that would occur once those parcels are released.
And finally, it would provide a means by which property tax relief could be
considered. I'm not asking the HRA to consider any of those types of
things this evening. I'm simply bringing those out. This is an area that
has been discussed at the Council level. It has been discussed by the
Carver County Board and I think we've roughly generally talked about it, if
I recall, in December. Again, the overall financial picture of the HRA is
very, very good. By the way, these figures do include the bonding that
occurred in December of 1989 which included finalizing all of the
acquisitions costs associated for the downtown. The north side parking lot
project is fully funded. The Phase II is fully funded. Of course the
Housing and Redevelopment Authority
January 25, 1990 - Page 10
Rosemount acquisition was from a year ago. Market Blvd., Lake Drive.
Those have all been bonded for. Special assessment reductions as they may
apply have already been accounted for in here. There were major dollars as
far as obligations of the HRA which again have been infussed into these
numbers and as you can see, your basic position simply continues to
improve.
Whitehill: One thing Don, I've noticed that the projected, this HRA
adminstratlve budget drops off drastically after '90. I just wondered why
and then going through the proposed budget tonight I didn't see anything
there that, unless we go into a semi-hibernation, why we wouldn't be...
Ashworth: The reason that I didn't think it should...
Whitehill: 25035 fairly well matches with the proposed 1990 budget but
then it drops to 48. We don't have any more fees or?
Ashworth: Yeah. In 1991. The biggest expense in that is your payments to
attorneys and it represents the development contract costs that we've
incurred associated with hotel, medical arts, phase II and etc., etc.. We
are not including in these runs any additional revenue streams so you
really do not have for example, even the supermarket is not in these
revenue streams.
tehill: I don't have any trouble with that but I just...unrealistic to
think that we're going to totally phase out of other development type
contracts and what have you. That we're not going to have some
continuation of this.
Ashworth: Again, it only reflects the conservative position that we've
taken in regards to revenue. If we're planning that absolutely nothing
will be built, which is basically what this says, nothing is going to be
built after 1990.
Whitehill: Okay, so we wouldn't incur any fees? That's why I say, you'd
have to go into hibernation to get this.
Ashwor th: Right.
Whitehill: Any other questions? With this in mind, are you looking for
approval then of the 1990 budget?
Ashworth: Really both documents, and again the other one that you're
looking to and copies again were distributed before the December meeting,
is this debt analysis report. I've gone through this so many times that
I just feel that for me to start going through page by page and making up a
debt schedule.
Whitehill: Is it appropriate for us to approve it or it's just a report
isn't it?
Ashworth: The only thing there is, as I noted before, there are a number
of transfers. This does represent...in terms of commitments of the HRA.
Housing and Redevelopment Authority
January 25, 1990 - Page 11
In terms of special assessment payments in the amount of each of the, it
shows each of the detailed special assessment payments. How those would be
transferred over to each of the debt service funds and so yes, they
would...
Whitehill: I'll move approval then of the debt service analysis and the
proposed 1990 budget.
Workman: Second.
Whitehill moved, Workman seconded to approve the Debt Service Analysis and
Proposed 1990 Budget. All voted in favor and the motion carried.
CONSIDERATION OF ARCHITECTURAL CHANGE FOR COUNTRY HOSPITALITY SUITES.
Ashworth: Perhaps I could start this one out. There was some confusion as
the item went to the City Council. When they started the construction of
the Retail West, that had originally been shown as being I think 20 feet
closer to the street than how it was actually ended up with the
construction. When certain problems were realized, the developer had come
back in basically asking if what type of process that they would have to go
through. Staff looked at the ordinances, all the setback requirements.
There really was absolutely no change in the overall position if that shift
was made. And it was approved. The subsequent, the Council I guess became
aware of the item and felt that staff should have brought an item like that
back to the City Council to make them aware of it. Have them vote on it
and maybe even go back through Planning Commission so that has been the
current direction of city staff and so any type of changes have to go back
through the Planning Commission. Back through the City Council for final
approval. In that overall process, we have been submitting the documents to
you just to make you aware of what it is that's proposed to be built. The
HRA has never voted on setbacks or size of buildings or parking
requirements o~ anything else for any building let's say within the
business park. Those types of issues are solely addressed by the Planning
Co~ission and by City Council.
Bohn: With the exception of the Medical Arts Building. Don't forget
that...
Ashworth: Medical Arts you did take and ask that that be moved back the 12
feet and whatever. And maybe Medical Arts is a good example of where we
have then, as changes occur, bringing them to you for your review. But
again the real approving body is the City Council. You do have the power
because you have been infussed dollars in the project. If you feel that a
particular change is not for the best, you could deny the project. We've
never done that yet but hypothetically it could be done.
Bohn: We didn't move the building back for the Medical Arts because of the
road but we had to buy land, use HRA money to buy that land.
Housing and Redevelopment Authority
J~nuary 25, 1990 - Page 12
Ashworth: And you also were subsidizing their assessments and if they
wanted to see those assessments reduced, they needed to comply with your
requirements. My point is that they will be looking to a reduction of
approximately 12 feet in the building. I'm not sure if Herb is going to
speak on this or Brad, whatever but the overall building will still conform
with all city ordinances regarding setbacks, number of parking stalls,
etc., etc.. Again, if you feel that the proposed changes are not right,
you could take and ask them to amend it but it would be different than what
we're typically done.
Robbins: The only reduction in the building, isn't that just the swimming
pool area?
Ashworth: That's my understanding. There is a question regarding the
canopy construction and of course from the original proposal they had
looked to a wood shake and they found that, I can't recall what the item
was. It deal with the fire code issue in terms of being able to, well
we'll have to maybe have Herb address that issue but for whatever reason
they felt that they could not take and put on the wood shakes and they went
over to a type of a fiber shingle that they felt looked very similar to a
wood shake.
Horn: What is that, do you know?
O Ashworth: No. Maybe at this point. Herb, are you speaking on this issue?
Herb Bloomberg: Well I'm obviously acquainted with it. I think I know.
Ashworth: Did you hear what the questions were in terms of...
Herb Bloomberg: No.
Ashworth: Question one was the wood shakes. Why were those switched from
wood shakes over to the fiber and what does the fiber look like. The
second question was the reduction in size in the building. Basically the
12 feet or whatever and does that occur in the poo! area? The third was
what are the current plans for the canopy construction.
Herb Bloomberg: The plans submitted, there will be an entry canopy so that
the cars and buses can go under. People can get off their transportation
and get into the hotel similarly to what we have at the Dinner Theatre at
the present time. The shortening up of the pool area was a recommendation
from the Country Suites franchise authority. They review all of this and
they feel that in the management of the pool that they would, I don't
believe the pool size has been reduced but the space. In other words, they
feel that it would require extra management or extra supervision of that
area and my feeling is that it still will serve it's purpose, what it's
being built for and I feel that it's a positive gain to have more room
between the two buildings. See, according to code, t~e hotel had to have a
5 foot clearance and the Animal Fair building, the large building we're
tearing down had to have a 2~ foot clearance because of occupancy and codes
so if that's increased by it's 11 foot 8 inches, almost 12 feet, which gets
up to about 37 feet between the buildings. And that,s going to be a
Housing and Redevelopment Authority
January 25, 1990 - Page 13
landscaped area and I feel that it's going to be much more attractive but
it gives us some more possibilities to make our rebuilding of the Animal
Fair building more attractive. As far as the appearance to the City is
concerned at all, it's really identical. There's a connecting, there will
be a connecting corridor so people can, as we've always said, can walk from
the hotel all the way to the Dinner Theatre. There will be a skyway
connecting to the Frontier Building and so forth. So that's the story on
the reducing that those few feet. As far as the roofing, there will be the
heavy Timberline asphalt shingles instead of the wood shakes. What had
happened in our cost, they originally figured on shakes but we found that
they had to be then fire treated and it got, for one thing, put out of our
budget and of course I've been in favor of shakes from day one but actually
we have, as you know not been able to keep, have very many shakes being put
in many of the new buildings. I think the Timberline shakes will look fine
and it is a prototype of what are being used in the Country Suites units
throughout the country.
Whitehill: I have never seen those.
Herb Bloomberg: Which is that?
Whitehill: How thick are they Herb? This said asphalt shingles.
Herb Bloomberg: Well it's the heaviest asphalt really that's on the market
ii think.
Whitehill: Are they asphalt or are they fiberglass?
Herb Bloomberg: Yeah, they're very heavy and I think that, I'm not sure
what's on the Riveria now. They're also a heavy, they give you a shadow
line. I mean when there was a light snow here a few weeks ago, you could
see the pattern of the shingles. In other words, it isn't a flat shingle.
It gets to be 3 thicknesses of butts that stacked up. It's about the most
successful design that has ever been achieved in asphalt shingles I
believe. I don't think there's any other asphalt shingle that would be
preferable at any price.
Horn: I've got those on my house but they're not the, Timberline is a
different product and they're not asphalt. The asphalt shingles are made
by Certainteed and they're called Hallmark and those are the ones that are
the really thick. It's a 40 year roof. Those are good shingles. That's
why I was concerned about this. I hope they're the Certainteed Hallmark
rather than the Timberline brand which is not as good a shake, or a
shingle.
Herb Bloomberg: Were you asking me something? I'm sorry. Unfortunately,
...hearing aid business believe me. My greatest frustration in life is
I can't be able to get these things working.
O Whitehill: You don't have any samples available do you Herb? Samples of
the shingles?
Housing and Redevelopment Authority
January 25, 1990 - Page 14
Herb Bloomberg: We obviously could have had samples if there was any
question about them. It's a very well known product and it's weight. I
can't just quote that weight. 340 pounds per square or something like that
but it's very heavy.
Ashworth: Do you know are the Timberline, or what was it Certainteed?
Herb Bloomberg: I think this was Timerline if I'm not mistaken.
Horn: That's a 30 year roof. The Certainteed is a 40 year roof. They're
much better.
Gerhardt: ...shingles from what Clark is talking about is the shingles are
a 40 year shingle which sits on the new Colonial Center that off set each
other. Give a shadow and I don't know what the Riveria has for the weight
factor but it's based on a weight. Conversations that I've had with them~
explained what we wanted but I don't know if they really accepted that or
not.
Horn: Is there discussion on that? Do you know what they're putting on?
Gerhardt: No I don't. They just wrote down Timberline.
Horn: That's a brand. That's a 30 year. It's not as heavy as the ones
t are on.
Gerhardt: I requested that they put the weight of the shingle down and
they didn't do that.
Horn: Usually there's a guarantee. They call them a 30 year, 40 year,
year.
Gerhardt: I think anything above a 750 is that heavier 40 year.
Horn: I believe that Timerline is really a fiberglass shingle rather than
asphalt.
Whitehill: Is this subject of our approval in any event or is this
strictly informational?
Ashworth: Jim correctly noted that you did ask that the Medical Arts be
moved back not feeling that that was in line with your overall plan. The
HRA is participating in the special assessment reduction as it's associated
with the hotel. Accordingly, you could establish certain criteria if you
wanted to for that construction. For example approving the write down in
special subject to the shingles being of a Certainteed construction or
whatever the wordage is.
Whitehill: I would recommend that we see some samples or organize a
Ocommittee of 1 or more to look into it and be their with authority to
approve the shingle or to bring it back to the HRA if the committee doesn't
approval it. Does that make sense? Do you want to be a co~ittee of 1 or
do you want some help?
Housing and Redevelopment Authority
January 25, 1990 - Page 15
Horn: Well I know what they look like. I think some of the other people
should give.
Whitehtll: We'll get at least one other member. Who's a volunteer?
Robbins: I'll be on there.
Horn: I've got some on my garage.
Workman: So it's going to be Charlie and who?
Whitehill: Committee of 2 with authority to approve it. If not, bring it
back to the HRA.
Herb Bloomberg: I think our main request, I believe the position is that
we'd like to proceed with construction. If there's anything that needs to
be verified on the shingles, obviously we'll come up with that.
Whitehill: This will allow it to move right ahead Herb without another
meeting hopefully. Alright, I made that motion. Can I get a second?
Workman: Second.
Whitehill moved, Workman seconded to appoint Clark Horn and Charlie Robbins
as a co~,ittee to review and approve the shingles for Country Hospitality
Suites Hotel. If they do meet their approval, to bring the matter back
before the HRA. All voted in favor and the motion carried.
UPDATE ON BERNIE HANSON LEASE.
Whitehill: Now, I don't know what to say about the next one. I just want
to read something. But we have good news to celebrate tonight. We've
reached agreement with Bernie.
Ashworth: We have. There is no necessity to consider Mr. Hanson's
request. I feel very confident that I explained the lease back to him
would include payment of taxes. Bernie had thrown out his back at the end
of last week. I was sure that I had mentioned our meeting this evening but
if I know Bernie, I'm surprised that he's not here and so I'm wondering.
Whitehill: He'll be here at 7:~0.
Ashworth: That could be pounding on the window out there.
Gerhardt: We've locked him out before.
Ashworth: Well as I noted in the cover memorandum there that there is no
y, and Bernie knows this as well, that we can forego or abate taxes in a
current year. Those taxes are due and payable, we don't know yet what they
are but they've been, they're being calculated by the County Auditor and
Housing and Redevelopment Authority
January 25, 1990 - Page 16
cities, HRA's cannot abate them during the current year.
Whitehill: Would they be prorated though for his period of occupancy?
Ashworth: Correct. He would under the purchase agreement, he will pay
1/12th for the period these and under the lease agreement, he would pay on
a monthly basis for the months that he's in there. So it really comes out
to, and then the only other item that's included within his, at the time
that the leaseback was negotiated, I did include in there the special
assessment payments that would be required to be made this year. Those are
1~% dollars of the HRA and rightly could be paid out of what would be
medical arts second addition. Repayment back to the HRA of course would be
delayed until such time as that second phase was actually up.
Whitehill: I don't think it's quite frankly fair to charge Bernie the
costs of .those special assessments because he's not going to get the
benefit of them so I would reco~Lend or I will move now that his lease be
amended so that it does eliminate the portion that is for the special
assessments.
Robbins: Second.
Horn: That makes it consistent with all our other actions?
~erhardt: Right.
Whitehill moved, Robbins seconded that Bernie Hanson's lease be amended to
eliminate the portion for special assessments. All voted in favor and the
motion carried.
APPROVAL OF MEETING DATES.
Whitehill: Did everybody get the calendar?
Bohn: I have a question. On July I would like to move the July meeting
date.
Whitehill: Is that your wedding aniversary?
Bohn: No. A whole group of us that go up to Madden's every year and I
won't be here.
Whitehill: Okay. Do you want to move it up or back?
Bohn: It doesn't make any difference to me.
Whitehill: Anybody else? What would be best Todd?
OGerhardt: Back would be better because if we get the packet out the week,
you've got to come after the 4th of July.
Housing and Redevelop~,ent Authority
January 25, 1990 - Page 17
Horn: The 26th?
Gerhardt: Fine.
Whitehill moved, Robbins seconded approval of the meeting dates for the
Housing and Redevelopment Authority as as, ended changing the July date to
July 26, 1990. All voted in favor and the motion carried.
HRA GOALS AND OBJECTIVES.
Gerhardt: Attached in your packet are a list of the goals and objectives
for the HRA this year. I just sat down and listed out some of the
activities that staff has been thinking about doing over the next year.
I'd like to answer any questions you may have or add to that list that I
may have missed. Brad had mentioned I missed West 79th Street or the Hanus
area.
Whitehill: I think that would be a good thing to have. I would also
recommend Todd that to the extent, now some don't lend themselves to this
but to the extent that you can put projected or anticipated completion date
on the projects.
(There was a change in tapes at this point in the discussion.)
Ashworth: ...and significantly change the amount of work that at least we
were completing in what would be the first phase. If the pond ended up
being drained and literally all of that grading work completed on for those
acceleration/deceleration lanes for that new road is now ready to refilled
and of course the HRA had picked out the particular fountains from, that's
a long time ago. A year ago.
Bohn: I would like to see those again.
Horn: I don' t remember those.
Bohn: I don't remember if we've ever seen them.
Horn: Sounds like we've turned it into Pat's Puddle.
Robbins: Todd, also with item 4, on the second one. St. Francis.
Execution, etc. Is that for their main parcel of land or just for their
portion of that clinic?
Gerhardt: That would be their remaining lands to the east of the
Crossroads National Bank.
Robbins: Now is St. Francis still is still interested? The only reason I
ask the question is St. Francis I also understand is building a clinic in
Chaska as well. So they're still interested in building here as well?
Housing and Redevelopment Authority
January 25, 1990 - Page 18
Gerhardt: They've had plans of building a hospital over in Shakopee for
the past 2 to 3 years. They had to get a special bill through the
legislation to build the hospital.
Bohn: They want to move it over by where it crosses the river.
Gerhardt: Right now there was a moratorium on hospital construction in the
Twin City area so they needed that bill to be passed. And the County and
the City I think are going to help by assisting the hospital a little bit
for additional offices for both those entities.
Robbins: Back to this item then, so this would be the remaining acreage of
that parcel of land?
Gerhardt: Right. To work out a private development contract. Direction
of the HRA this last, I think July meeting you designated Woodbridge as the
developer... As St. Francis as being one of the leasing tenants or owner
of the building. I don't know how they're going to approach that but it is
that use being used for medical profession is the way I understood the...
And Woodbridge has contacted me. They are working through some additional
concept drawings. I did some additional drawings today as we were meeting
with the bank and finalizing the plat and it should be in the next meeting
with some concept drawings and authorization of the HRA to work with staff
in developing that private development contract. The bank closing we're
ticipating to be sometime the end of February with final plat approval by
the City Council on February 12th.
Whitehill: Any other suggestions for the program for 19907 Alright so
those would be added to it Todd. I move approval.
Horn: Second.
Whitehill moved, Horn seconded to approve the HRA Goals and Objectives as
amended for 1990. All voted in favor and the motion carried.
APPROVAL OF DECEMBER BILLS.
Whitehill: What is contract services and supplies?
Gerhardt: Those are the individuals that did the remodeling of the
Colonial Center. I think that was their last payment.
Robbins: And the one above that, Sterling Fence, was that?
Gerhardt: That's the fence that was built behind the Retail West extended
down to the apartment. We should get a portion of reimbursement from the
Retail West developer.
ORobbins: Why didn't we get it all back from the developer himself?
Housing and Redevelopment Authority
January 25, 199~ - Page 19
Gerhardt: Because half of the fence is on our property for the parking lot
and we're screening. The neighbors in that area had complained of people
running through their yards into the construction...shortcut. That was
included as part of some of the contract costs for the north side parking
lot.
Horn: I'd move approval of the December bills.
Robbins: Second.
Horn moved, Robbins seconded to approve the December HRA bills. Ail voted
in favor and the motion carried.
Whitehill: Where was that retaining wall question?
Horn: That's in this Adminstrative Packet.
Whitehill: I knew it was someplace.
Horn: Under BRW.
Whitehill: I was wondering if anybody wanted to comment on that?
Horn: I suspect that will be coming back to us wouldn't it?
Ashworth: Maybe we got that in a little early. I'm getting a response
back from the City Engineer on that item. I had one from, I'm not sure if
BRW's response is in there yet. I think it's maybe a little premature
until staff's had an opportunity to meet back with the developer and see if
there's an impass there or not. Again, I'm waiting for a response from our
City Engineer as well as BRW. We have the response from BRW. I'm waiting
for the response from the City Engineer. He told he's dictated it but I
haven't seen it in my in basket.
Horn: So this will be on a future agenda?
Ashwor th: Right.
Robbins moved, Bohn seconded to adjourn the meeting. Ail voted in favor
and the motion carried. The meeting was adjourned.
Submitted by Don Ashworth
Executive Director
Prepared by Nann Opheim