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1990 05 17CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING MAY 17, 1990 Vice Chairman Clark Horn called the meeting to order. MEMBERS PRESENT: Clark Horn, Charlie Robbins, Jim Bohn and Tom Workman MEMBERS ABSENT: Cliff Whitehill STAFF PRESENT: Don Ashworth, Executive Director and Todd Gerhardt, Asst. Executive Director. APPROVAL OF MINUTES: Robbins moved, Bohn seconded to approve the Minutes of the Housing and Redevelopment Authority meeting dated April 19, 1990 as presented. Ali voted in favor and the motion carried. VISITOR PRESENTATION: None. DISCUSSION REGARDING THE DEMOLITION OF THE MODEEN/HENDRICKSON FACILITY. Gerhardt: In your packet I've included a couple of drawings regarding the layout of the parking lot which would be directly east of the Riveria, behind the Medical Arts and behind the Chanhassen Lawn and Sport. In both cases it. shows how the parking lot would lay out-if Modeen/Hendrickson building stays and how the parking lot lays if Modeen/Hendrickson is demolished. Did HRA want to have staff review any of that or did you understand how that was laid out? Basically if the building stays, you would lose substantial part of the parking lot as it lays out to the west of the Chanhassen Lawn and Sport. It would be to a gravel base instead of a paved base with a temporary bituminous curb laid along the most northerly part of that section of gravel. Just to make sure that the traffic movements coming off of West 78th Street as they go past the Riveria parking lot and head back towards the medical, you need that traffic flow and layout in that area for that to occur. Horn: Are you talking about if we were to lay the parking lot out with that still there? Gerhardt: Pardon me? Horn: I don't quite understand your diagrams. Ashworth: Yes, that makes the assumption that the Modeen/Hendrickson building stays. Gerhardt: That's on the top I wrote that down. There's two scenarios in the drawings and there's two pictures. I couldn't fit it all on one with the Medical Arts. Horn: Is it clear to everyone but me? Workman: Are we doing this Todd? Gerhardt: Right. Housing and Redevelopment Authority Meeting May 17, 1990 - Page 2 Ashworth: I think it may help if you actually take it up. Here's the Medical Arts. If the Modeen/Hendrickson building stays, the question that occurs at that point...island being built. This would just stay in a 9ra~el condition. You would lose these 10 parkino stalls in here. You would lose the island itself. The gravel condition would be necessary for anyone comin9 down this drive aisle here, would have to take and be able to get back out this north side because this would just be dirt right arouDd this edge of the Modeen/Hendrickson. There would have to be a barrier in here. Traffic would be brought back up in through this section so again there's not an overlap but you lose both of those islands. Then your traffic would be brought back up. To ensure that as a vehicle got into this area and didn't try to take and cut on across, what BRW is saying is it would be necessary to construct this portion in here. That could stay as concrete but then starting in here you would have an asphalt curb all the way along here. Just to ensure that this traffic here was channelized correctly out of the parking lot area. For Medical Arts, they would also be losing the parking stalls in this area in here. How many of those you'd attribute to Medical Arts, I don't know. 8 to 10 would be relatively close to their doors. Of course if the Modeen/Hendrickson is in fact taken down, it would be the reverse condition in that these parking stalls can go in. We do have a drive aisle. Both a south drive aisle as it would go in front of Medical Arts all the way on out as well as the north drive aisle all the way out. You say both of the islands would go in. The light would go in. The parking stalls in here would go in. This island would go in. You would leave this as gravel in this particular section. Horn: $o you'd leave that part gravel if it stayed. If it stays, then this is paved? Ashworth: If the building, Modeen/Hendrickson goes down, gravel parking. Horn: If it stays, it looks like that's paved. Robbins: That's where the building's going to be built there. Horn: In the future. Ashworth: Yeah, in the second phase. So that just stays as gravel. gravel condition. Would be built. $o in other words, all of these parking stalls here. Horn: So you're saying you'd construct it differently as to when that came out? Ashworth: Yes. We'd have to. Complicating factors include, we met with the Riveria earlier this week. They have a lot of concern because they have over their east or made their new entry to the east. The landscaping, sidewalk and all the rest of that are dependent on Schafer putting in the second phase contract. Until a decision is made regarding Modeen/ Hendrickson, Schafer has delayed moving into the project area. So we're 2 to 3 weeks behind schedule. That is affecting again the construction for Ri ia nstr [on for s and whole gr Housing and F~edevelopment Author/ty Meeting May 17, 1990 - Page :3 Robbins: The apartment building also. Ashworth: The apartment. We did have an opportunity to meet as well with the owners of the Medical Arts. During the whole timeframe that Medical Arts was being construction, or talked about being constructed. Horn: Are we saying that that second phase is ready to go in? Ashworth: Second phase? Horn: Of the Medical Arts building? Ashworth: No. Robbins: If this building is town down, there's no building back there. Horn: You're in the wrong section. This is Medical Arts. This is the east. This stays the same. The only part that's affected is this. What it looks like here is that this part gets paved in this scenario and it stays gravel in this one. Workman: It's a construction pad. Ashworth: No. In both options, the area you're pointin~ out there stays as gravel . Horn: So the gravel here extends all the way down into this contrary to what this picture shows? This is all gravel too? Ashworth: That's all gravel. Right. But because it's darker up in this other area, that means that that's all blacktop and there's curbing where it's... Workman: It's 10 stalls. Up or down. Ashworth: This is where your temporary curbing goes in. In this instance, this is all gravel. Horn: And this? Ashworth: And this, yes. Horn: Plus the bottom area? Ashworth: Plus the bottom area. Horn: It isn't shaded. It's shaded on one but not on the other. Ashworth: Where it's confusing is that on one of them shaded means gravel and on the other one shaded means blacktop. That's fine as long as you know that that's what it is. Housing and RedeveIopment Authority Meeting May 17, 1990 - Page 4 Horn: In the long range we get the same thing though right? We're talking a temporary situation here? Ashworth: Yes. Horn: So we're talking about effectively 10 stalls for an interim period? Ashworth: I would say more than that. I would say closer to 20. Horn: Is that what you got out of this? Ashworth: The stalls that you would lose are more for Medical Arts because it becomes a driving lane. 10 right by the door becomes a driving lane to let people out of that parking area. Horn: This really is confusing. This is a driving lane in here. Workman: 15 to 20. Ashworth: So you lose these stalls in here. Here's the Medical Arts building so to ensure that a vehicle coming down, so we pave this. This curbing here would all go in. The curbing would stop right there. This island here would go in. This would all be black but to ensure that a vehicle did not come down this south lane and end up being boxed in where he has to back all the way out, if you assumed that all of these stalls here are filled, you need to take and leave this open because this is going to be a big bank here. So you need to leave this open with some type of a direction so that the vehicles, they do not park in the area. In fact can come back up and get back out. Horn: So we lose some here and we lose some. Ashworth: 5 plus 5 is 10 and then see this overlaps right like that so you also lose to the extent from this edge here, what these stalls cannot go in either because here's the building. Here's the Modeen/Hendrickson building. So this island does not go in. None of these stalls in here go in. Now how many of these stalls would you attribute to walking this way? I don't know. Required parking associated with the Medical Arts was 112. Horn: Yeah, it looks like 20. Ashworth: An additional factor is that during the whole timeframe that we were negotiating the Medical Arts, trying to take and move Bernie, Modeen/ Hendrickson, we continued to move off their contract. As a part of that and I think that the HRA will remember, they were very concerned about this parking area going in and we bid it the first time and the bids came in high. We decided we would rebid it. They came back in and asked for a clause that if we didn't carry it out as a public improvement, that they'd have the right to do it and that they could then be reimbursed their costs for putting in the parking area. Does any of this...? Okay. In that whole timeframe, we also continued to move back various dates. $o we guaranteed that the parking area in the back would be in by 3une 1st and Housing and Redeveiopment Authority Meeting May 17, 1990 - Page 5 there would be 112 parklng stalls. Well, I don't know if we'll really meet that June 1st deadline. I'm sure that they feel that the 112 stalls included those stalls in front of them. Okay, generally in this area. But the fact is there's 430 parking stalls from one end to the other and there's nothing in that agreement that says 112 stalls will be in front of them or they'll be by Kenny's or they'll be behind the Riveria. Again, I think that they feel that there's an obligation. The one that's of the most concern though is that as we kept moving dates back, because it appeared as though we couldn't get Bernie moved and it would be June of 1989 and then fall of 1989 and then spring of 1990 and then fall of 1990, we continued to change various portions of the contract with Medical Arts so that we had the same dates. In that whole process they even, we had represented to them that Modeen/Hendrickson would come down. $o that was never put into the contract because they felt reasonably assured. The City at that point owned it. It was going to take it down. They didn't need to. have that into the contract. Then we had a deal with Bernie. Then we didn't have a deal with Bernie and the dates on that contract continue to change. Right now the one that is signed on file calls for him to be out of there by September 1. In the meantime though as we've gone back to the Medical Arts and we change their contract paralleling changes we were doing with Bernie's, the last change was not made so effectively we have a contract with Medical Arts that says that the area where Bernie's building is will be clear by August 1st. I think that the Medical Arts people are willing to live with or go through some give and take and I think that if it's a matter of being a~le to keep Bernie there. For him to move over to the other facility, they would be willing to not require us to meet that August 1st deadline but at least in our discussions they really feel that we had represented all the way along that Modeen/Hendrickson would come down and that if it were not going to bend at all in this process, they questioned the necessity for them to bend but I don't want to say that in the wrong way but I think we do have a problem if everyone starts looking at this in terms of the letter of the law. So I don't know what's going to transpire here this evening. I think two things have to. One, a decision has to be made regarding Modeen/Hendrickson. We're having some real effects back to Riveria, Kenny's, the apartment complex, the rest of the project. I think that's a foremost decision. But secondly, I see that you're really in a catch-22 because Bernie is going to push very heavily for you, upon you to leave that building in place. I think that the Medical Arts people are going to say we want you to follow the agreement that you entered into with us and that's where it comes down to. Horn: It seems to me like we've got these in the wrong order. Ashworth: How's that? Horn: Well it seems like we need to know what the situation is on number 5 before we know where we are on number 2. Ashworth: Well that definitely does come to play in the consideration. Would you like me to jump into that? Horn: How does the rest of the HRA feel? Housinq and Redevelopment Authority Meeting May 17, 1990 - Page 6 Sohn: I don't see that that has a bearing on that building. Workman: I think our ability to buy a couple of outlots has a big bearing on whether or not Bernie stays in business or not. CONSIDER ACQUISITION OF THE CORNER OUTLOT IN THE MARKET SQUARE DEVELOPMENT. Ashworth: Did you write that up? Oh, that I would give it verbally? G~rhardt: I didn't talk to Bernie. Ashworth: If I may, it's short and sweet. The partnership, this is the group that is ready to build the shopping center complex. First of all let me provide an update and that is that I talked, have been talking with Target here for the last 2 weeks. At this point in time they have no idea where they are any more than they did a month ago or 2 months ago. The discussion I had with Dick 8rookes was one in which I talked to a very frustrated man. I talked to a man who typically is given the go ahead or the ability to move ahead with certain decisions regarding locations of stores and starting to do the work to actually put a store into a community. In this instance, for whatever reason they gave him the go ahead, they did extensive analysis regarding various parcels in Chanhassen and he felt that there was a definite commitment to go into Chanhassen. For whatever reason, corporate basically stopped him. Said don't do anything more and since that point have not provided him any tools, any information, anything to the point that he's basically saying you people should make your own decisions. I feel very frustrated with those that I work for and I've never run into this situation. Again, he was a very frustrated man. In the meantime the partnership has re-examined their position. One of the biggest problems that they have is that if this project would have moved ahead as of one year ago, certain costs of holding the land would be a part of the loan and the whole development of the site. Since it did not move forward, the project per se has incurred $150,000.00 in costs that were not there 1 year ago. Specifically payments to Mr. 8urdick. They've been searching and looking every way possible that they may be able to still keep the project as a viable project and they come down to the one realization that they are carrying very high costs with keeping a large portion of the site open for future development. So the part of the site that they're developing in terms of a first phase is trying to carry the vacant lands including the payoffs to Mr. Burdick for what would be second, third and fourth phase development. As a part of that process, they have come back saying is there a way in which the City, HRA could purchase 2 of the outlots. Put those into the HRA's name. Give them the first right to build on those lots within a reasonable period. Two years or purchase them back. If they fail to purchase them back within 2 years, they're ours. We can do with them what we wish. If we would carry out that purchase, cash would go into the overall partnership. The loan. The project and they've got a doable project. That's really where it comes down to. I apologize for not being able to write the report itself up. I was gone at the end of last week and so the report is being made verbally. I don't think that there is a strong indication by them as to which of the various outlots. I think Todd has labeled them as 1, 2, 3, 4, 5. Right now some other things you've heard in that process, although Fiousing and Redevelopment Authority Meeting May 17, 1990 - Page 7 it was not guaranteed, they had initially anticipated that outlot 2 would in fact be purchased by Mr. Burdick as a part of some of the transactions they were carrying out. Since that point in time he has decided not to car~-¥ out that acquisition and of course then again that's that much cash leos that's available for the project. So I think that what they would look to us potentially having under HRA ownership again for upwards of a 2 year period of time, would be Lots 2 and 4. They would sell those at what I would refer to as a discounted value and they would agree to take and pay some type of a premium value in repurchasin~ them. Have I misstated anything Brad? I'm assuming Brad is here. Brad Johnson: I think conceptually we've sold Lot 1, or have potentially sold outlot 1. Lot 2 is definitely the one we'd like to see purchased and Lot 4 would be the next one that we'd like to be purchased because we perceive that we'll be holding that for a while. It will probably be another year or two before we develop that and all that is is an infill lot between t. ho drug store and Bernie's property. As I said, you can see that the amount of land that we're holding and when you work all these numbers together, it comes up we come up a couple hundred thousand dollars short in mortsaoability because we don't have the lots sold and 4 and 5 we just can't sell. They have to be held until they're ready for development so there's no solution to that and that amounts to about $290,000.00 that we're holding. I think one of the concerns normally in this kind of situation if you get good title to somethin~ and obviously we can deliver title to Lot 2. Lot 4 might be a little more complicated because it's in the middle of our project. I think we can deal with the concept today and the~q work out the details over the next month and then conform it. Ashworth: From a precedent standpoint, this concept, what they're presenting is really no different than when we acquired Havelick and part of Riveria. Packaged the lots. Resold them. Purchased Rattler, part of Bloomberg, part of Colonial Grove. Resold that for apartment complex. Lots 5, 6, 7 and 8 on Nest 79th Street. Packaged. Resold. So again, I do not see where the requests they're making is any form of a precedent. It becomes simply a question ~s to the HRA has become very involved with this project to date. I mean we're putting major dollars in. In Bernie Hanson's name. In Kent's name. For the supermarket project and no~ we would literally, in addition to those commitments, be making an ownership position for a period of time. ~gain, that's a decision that the HRA would have to make. The partnership assures me that they do have their financing ir~ place and they would be ready to start construction as soon as, or very quickly and I don't want to put too ~uickly in here because you've ~ot to complete the plans and specs and come in for the permit and all the rest of that jazz. Horn: It says here August 5th. Is that still a commitment? Brad Johnson: That would be our projected date of starting. Horn: $o that's not a commitment? Ne wouldn't make that part of our purchase agreement? Housing and Redevelopment Authority Meeting May 17, 1990 - Page 8 Ashwort. h: You could establish whatever you would like as a part of that agl-eement. Horn: I'm speaking for myself, I'm anxious to get this project going. It's frustrating to me though to hear that again, once again this would put the financing in place when I've been led to believe all along that the financing was in place and then to come to this hour and find out well there's one more hold up is frustrating. I don't know if it's shared by t~,e rest of the group or not but that's my feeling on it. I'm not that concerned about precedent in this case becase as you say we have done that. I'm most anxious to get this thing moving. It's just frustrating. Mary Ann Hanson: I have one question. Why does this keep happening with the financing when one is led to believe that it is all in place? Who is the person responsible? I mean we were told last 3anuary when we signed our contract, 3anuary 31st that it was all a go and here we are May 17th and we're back to what, starting one? Horn: What assurance do we have that this is it Don? Have the attorneys reviewed this? Ashworth: One of the things you could do is actually have the closing for the property set for on or before August 5th. I mean that assures them that if they're able to perfect everything, get it done, that on August 5th that the dollars from the HRA would go into it. If they fail to meet that deadline, the purchase agreements would go by the way board. (There ~as a tape change at this point.) Workman: ...so that's too late for Bernie. The only thing we're accomplishing there is go ahead with. Ashworth: I think all the way through we've been talking about 6 months for construction and I don't know if it can go faster than that. That was the number that's been used and that puts it after the first of the year. Workman: But we're talking about August 5th closing so we're not talking about construction starting until after that. Gerhardt: Commence construction August 5th. Horn: That's what our purchase order would have to be contingent on. Workman: Spring. Ashworth: February 1st. Horn: Last time we talked and we said that the hardware store wasn't in jeopardy at this point. Does this start to put a pinch on them? Clayton 3ohnson: They had 2 years left or 2 1/2 years. ~lousin~ and Redevelopment Authority Meeting 17, 1990 - Page 9 Brad 3ohnson: Their lease with the center park says they won't move in unt. J. 1 January 15, 1991... Ashworth: Although every time that I go down and visit with them, Kent continu, es to refer to the need for their business to be able to expand and how cramped he is and etc.. I don't know if he would move up quicker if he had an opportunity. It sure sounds that way when I've talked to him. Horn: D~d you have other questions Tom? Workman: I can see us getting in trouble with Merlyn's too here pretty quick because you said January 15, 19917 Clayton Johnson: That's the earliest he can move. Brad 3ohnson: The earliest he'd be willing to move in. Workman: I think 2 years ago we were thinking Medical Arts would be up. Again, mixed in with Bernie's situation. If we go ahead like this and we've got to have Bernie out and I'm a little confused on the dates because it sounded like you said. Horn: 6 months from August 5th. Workman: It sounded like Bernie had to be out by September let but his building had to be down by August let. Horn: That's the original contract. Ashworth: You've got 2 separate contracts but again we've been trying to keep those in sync and I think again that Medical Arts would be willing to accept verbal acknowledgements that at least I believe were in place with then] but I think that Modeen/Hendrickson parking space area is very important to them. I think a decision we make there could very well affect whether or not they try to enforce that August 1st date or not. Horn: So let's see if I understand this correctly. We'd be looking at sometime after the first of the year before Bernie could move into the new place. You feel that we could probably negotiate with Medical Arts to have him keep his building until that point but the Modeen/Hendrickson would have to go? Ashworth: The September/October timeframe I feel comfortable that they would be willing to live with if they knew we were maintaining the commitments that they felt that we have previously made to them. I do not, and 8ob Copeland is here this evening, I would prefer hearing him respond to that quection. Horn: Then we have to find a place for Bernie between September and ~ebruary. Ash~gorth: Yeah, whether you take October or September or February, it means an additional move which Bernie has said that that's just not in aoy Housing and Redevelopment Authority Meeting May 17, 1990 - Page 10 way feasible for him and he can't accept that, dab, dah, dah, dab. Horn: To me this whole thing has to work together. The whole plan. Ashworth: That's what you'd strive for and I guess that that's where we've been to date and as we've moved dates around during the past 2 years, we've always tried to take and make sure that we were kind of working with everyone. It does appear in terms of those two date sections that we are in a little 3eopardy. Mr. Copeland, did you wish to speak at all? Oob Copeland: I don't know where to start. What was the question? Horn: I guess the question is, if we worked out this kind of an agreement, could we set up a facility for Bernie to stay in his building until he could move into the Market West? Bob Copeland: The accommodations that we've already made is until August 1st. In other words, we went through this all at one time already and August 1st is the push back date. Horn: I think it's September 1st. Bob Copeland: August 1st is what our agreement says. Ashworth: Theirs says August 1st. Horn: And Bernie's says September lst? Ashworth: The lease back with Bernie says September 1st. Workman: $o you're not willing to allow that? . Richard Haefele: No, we're willing to do, we just we haven't had a proposal before us. Bob Copeland: We have agreements that first of all we're supposed to have parking by 3une 1st. Now nothing's happening. We don't have any stalls let along the 103 that were promised. Horn: When did your building open? Bob Copeland: April 30th. Horn: Oh, it's open? Bob Copeland: And there's nothing happening and the reason there's nothing t~appening is because the City's contractors says he won't move in until that building's gone. Modeen/Hendrickson. Ashwortl~: Until the decision is made Bob. Bob Copeland: Well all I know is what he told me. 14outing and Redevelopment Authority Meeting May 17, 1990 - Page 11 Workman: Well I'd suggest that if we don't have the flexibility and B~x','nie's going to go out of business anyway and Merlyn has time, there's no ~ense in us buying outlets. Horn: It seems to make sense. Do you have any questions Jim? Charlie? Bohn: I guess to me, unless I'm missing something, I can see where they relate. I mean obviously they all do but it appears that also we've got a commitment. Mr. Copeland with his building. One to Bernie. With others but I think, to me anyway reading this and I've been involved in this a long time, it appears'that the Modeen/Hendrickson building maybe ranks higher in terms of solving that problem now than maybe worrying about the outlets later and getting that going. $o I think we have to look at that process first. Did I miss something or not? Horn: Well if we don't worry about the outlets, the Modeen/Hendrickson building consideration becomes a moot point because Bernie's out of business. Robbins: Why? Horn: He doesn't have a building. Bohn' Well the Modeen/Hendrickson building is just used as storage. Horn: I know but if we don't buy the outlets, we don't have a place for him to go. Bohn: But I think the agreement we had with Bernie is that, and Bernie correct me if I'm wrong, is that you were going to use Modeen/Hendrickson for storage and temporary storage, etc. through March 30th. I think we all understood at that time that on March 30th then we were all comfortable that the storage needs that you had then would be gone. Is that correct? Bernie Hanson: I'm not aware of the March 30th. Bohn: It seems t.o me we've got a contract or a memo about that. Horn: Yeah, I do too. Bohn: Saying that we agreed to March 30th but I guess this goes back Bernie a couple years and the Modoen building I believe was not being used at all by you until a just last year? Bernie Hanson: I used one-third of it all the time. Robbins: You used it for snow things. Bernie Hanson: I had storage in with the Tucker. I had that one stall which is about a third of that building for the last 4 or 5 years. I don't kf~ot4 the exact amount. Housing and Redevelopment Authority Meeting May ].7, 1990 - Page 12 ~ohn: But I think we've asked this before. Do you need the building yet for storag$ o',- is there another way that you could store things and have that building come down? Bernie Hanson: We need that much storage. The other option is as was talked about a long time ago was tearing that building down and putting a fence up and Don had agreed to build storage on the west side of our existin.9 fence. I mean that's a way to make it happen but you're talking about losing parking stalls. If you build on the west side of the fence, what c{o you gain? You're putting that big part up on the west side. You're obstructing it on that side. I don't see where there's a gain. I see there's more dollar spent. We're taking more space on the west. I see, it was said tonight, there's 400 and some odd parking lots and I can't hardly believe that the existing facilities can't compromise a little bit to make the parking work for this period of time. It don't make sense to me. It doesn't make logic. That's all I can say. Bohn'. If the building had not been there originally Bernie, where would you have stored then? Bernie Hanson: God only knows if the building had never been there. As I said the last, how many years...5, 6, 7? It's 5-6 years that I used a third of that building. Bob Copeland: Are the Tucker's still in there? Bernie Hanson: No. I paid for it because I owned the Tucker during all that time and I used that storage. Workman: My point is besides Modeen and if Modeen's down and the fence is Lip or if Modeen stays, his building or he's supposed to be out of there ~ugust l~t or September 1st with no place to go either and so if the purpose and Bernie's out of business for the winter which is a prime season I suspect, and he ends up going out of business, why should we buy outlots to make sure Market Square goes through if he's not going to be there and Merlyn's has 2 1/2 years to sit on their hands. Then we have no need to buy the outlot because we've then put a businessman out of town again. Robbins: What do you mean again? Workman: Well out of business. We've had businesses that have gone out of business in town, and so we don't need you to invest money into Market Square and help them out. Horn: What I would like to see happen is that we propose a compromise that isn't what anybody would really want but it might be the best we could come up with and if we negotiate for taking down the Modeen/Hendrickson building to buy Bernie some time in his existing building until he can move in to the new building and do this all as a package. Robbins: And put a fence up on the west side of Bernie's present building for storage. Housing and Redevelopment Authority Meeting May 17, 1990 - Page 13 Horn: Right. Bohn: Don, by doing that would that allow, Mr. Copeland, would that help out the parking then to allow the construction of that parkin~ if the Modeen building is down to allow for that flow if there was a fence built along the west side? Bob Copeland: It makes a lot of difference. That's our number one problem is that Modeen/Hendrickson building. Our primary concern. · ~ohn: But. going back to what we're saying though, if in fact that building is down and ~;e put storage in for a temporary basis for Bernie on the west side of something, that kind of solves both parts then the way it sounds. Bob Copeland: Well it helps but recognize what you're talking about now. That means that at the earliest we're going to get our paved access over the existing Lawn & Sport site, which is what we're supposed to have, by August 1st and we won't get that until a year from now. That would be the earliest. Horn: Any of the rest of the commissioners have comments on the compromise o~- would they like to suggest an optional proposal? Workm~n: I guess my over riding concern here is and we've all been inconvenienced but a little more inconvenience for an entity versus a completely going out of business option for another and I understand this has been a long hard process that I haven't had the luxury of being a part of half of it but I think everybody knows where I'm sitting. Robbing: When is phase 2 of that Medical building supposed to start? Bob Copeland: We don't have a date picked out. Rubbinc' So it probably wouldn't be built this year anyway? Bob Copeland: It won't be built in 1990. I'm pretty confident. Some tenant could come along tomorrow and require the space and that would cause us to want to go ahead but right now I don't know of anything that's... Robbins: And if winter would come anyway, you couldn't start construction until the spring on that? Dob Copeland: We're not really worried about phase 2. Phase 2 doesn't ente¥ into it. Robbins: It's the driveway coming in there. The driveway access. Bob Copeland: Yeah, see our primary access, one of the main access to the property is supposed to be over that Lawn and Sport site along Nest 78th. My concern is that we would be here a year from now. We'd be back here a yea¥ from now. I mean I've been here before having'the same kinds of Housing and Redevelopment Authority Meeting May 17, 1990 - Page 14 discussions and that if we said, well okay. We'll do what you're suggesting. The Hendrickson building goes. We get the stalls that are most important to us but we'd be back here a year from now. Horn: That's where we have to rely on what Clayton told us. Bob Copeland: I'm saying if the only way that he goes is if a new home is built for him, that doesn't seem like a good deal for us. Who knows when that would be. But if you picked the date and you said home or no, wl~at.e:ver, thic time we're really saying it's going to go. ~-Iorn: Bernie will probably tell us that if we don't get something moving this year... Bob Copeland: Well I can't speak for Bernie. I have no idea. Ashworth: What if the, again this purchase agreement back with the lots over there because that is the best place for Bernie to go. I mean where else is there roi- him? Really nowhere. It's the best place for him monetarily. You made a suggestion that the purchase agreement have an August 5th date. I would say maybe go to a ~ugust 1st date and have a further contingency in there that basically says that if it's not in place that notice would be given that the City would be not leasing that property further after the September 1 date. So we've got to get a notice out 30 days in advance and that's the reason I picked gugust lat. It would be sent to Bernie. He knows. The partnership knows. Everyone knows that ~ugu~t 1st becomes a key date as far as getting financial packages put together. Construction plans complete. Building permit ready to be taken out. If thosa things don't happen, notice is sent out. Mr. Copeland knows that the site will have a definite timeframe where it will be cleared. We're no longer in potential jeopardy with our contract with them and again have a secondary date that says February lat. That Bernie vacates that property. Horn: So it's either he's moving one way or another February 1st? Ashworth: Just build a whole chain of contingency dates. Horn: Does that sound reasonable? Bernie? Bernie Hanson: Now if you go with that chain of events, you're saying February lat. I'd have to ask for into March because that's about like asking Clayton at the Dinner Theater to move at Christmas. ~-Iorn: And March and February probably are about the same as far as building a parking lot. Ashworth: Well yeah as far as actually, although demolition time, winter like that's not a bad time for demolition to occur. Whether it occurred February 1st or March 1st, I don't know if that makes a difference. Horn: I don't think so. Flousing and Redevelopment Authority Meeting May 17, 1990 - Page 15 Ashworth: I'm sure Mr. Copeland is sitting there thinking, every 30 days is important to his customers as far as knowing where he's at. Finding their tray in. Deciding that they're going to continue to go to a p9rticula~' doctor or not go or go somewher~ else. Horn: But 30 days isn't going to change that entrance. AshwoYth: Probably not. Bohn: What does that do to the Modeen building? klorn: Tal<e~ it down right away. Bohn: I mean right away like today or right away in 30 days or 60 or 90 or what's the timeframe for that? Horn: We can set a date for that too. Robbins: Todd did have somebody on the fence at one time. Bernie Hanson: I just want to make a comment if you're talking about the dates for tearing down the Hendrickson, if I hear your conversation, but also to be storage area that has to be built on the west side...that we h~ve to have a roof for storage of some sort because we have to have weather protection. AshwoYth: Well let me intercede in here before, at issue is really one of whether or not the City would participate in the fencing. I think the initial meetings between Todd and Bernie that he had related that Bernie l';as not pa~¢-.! any rent associated with the time that he has been in Modeen/ Hendr~ckson and he felt that Bernie should pay that cost. Then there was a series of discussions and basically as I understood it, an agreement that Modeen/Hendrickson would come back but that Todd would come back to me to see if there's anyway that we could bend and pay for that fence. At that point in time I had told Todd, I said if this gets everything done, if this get~ the building down, Bernie happy with it, I think I can make a good justification for that in front of the HRS. We're realizing that you hadn't approved it but I would be pushing for it. The whole thing regarding roof and what not, I think was discussed Councilman Workman, HRA n',embe¥ Workman, myself, Ursula and Bernie and Mary Ann had lunch one day and that had been brought up somewhere in the discussion but I do not, nowh~:re had we in any way. There were a lot of things that were talked about. Can we get a tent? Can we do this and. HoYn: That wasn't part of our discussion. Robbins: No. There was no roof in our discussion. Ashworth: Again, maybe Tom if you can remember part of that discussion that I don't but I don't recall. t.~oYkmar,' I guess I don't remember specifically if we were talking about a roof. l-{ousin~ and Redevelopment Authority Meeting May 17, 1990 - Page 16 UYsula Oimler: ...was concerned about security though... Robbins: Bernie, I think we had talked about the fact that pick-ups could get back to the fencing and use forklifts and lift things over so you were concerned about fencing more so. I should say back to what Ursula was saying, the actual security of the property. Bernie ~anson: All the time on the west side there for storage is if we ever w~nt to that, we said we had to have weather protection which Todd and I bays had many conversations on. And way back originally at one of the meetings Don, my attorney Rick Haefele and my wife Mary Ann were present and said that they would take care of that part of the construction. Going back to bein~...on the Hodeen building, I have even requested a statement to tell me what I'm paying monthly and I was told not to worry about it and that includes our building that we are in. I requested a statement and I was told not to worry about it. Horn: I don't kno~ what the rent was on the building you're in but it seems to me [~e came up with something like $100.00 a month. A.s!',~;oYth: It's basically a dollar and they pay all utilities. The discussion he's talking about is one that he and I had, I don't know in January-FebYuary timeframe. At that point in time the taxes that would be payable for 1990 was not known and he is to pay 1/12 of the taxes. Not the specials but the taxes themself. Since we didn't know them, I did say to him do not ~orry about it until we know what they are. Horn: What I'd prefer to do is to, our situation is obviously changed and I think ~e should not worry about what some of our plans were before that didn't make it. Let's worry about what we're going to negotiate this evening. Try to get this resolved once and for all. R~cl< 14aefele: I'm Rick Haefele. I guess my concerns, listening tonight, have to deal with Market Square. The rest of these things I think can be wo]-ked out. They're workable ways to move fences or construct. You can rent tents for a period of time that will provide some kind of weather protection but now tonight is the first time I been concerned and I expressed a week ago the concern with the mixed signals that we seem to be receiving. I didn't understand, we entered into the agreement originally [~ith Don. We met with those people and everyone indicated to us that everything was in place and it was a matter of just selecting between two fir~ancing groups and I think that comment was made tonight. That there was one point in time when it was just a matter of selecting between those two financing ~roups and I asked Don on a number of occasions if there was anyt. hin~ that had to be done by the City, if all approvals were in place, if [~e simply had to Go and Get a building permit and we were told at that time that. was true. And Don indicated I believe that tonight, that it was or, ly a matter of a final set of working drawings and a matter of issuing the building permit. Now I find out that apparently the owners of the property ate electing, and I understand why they're doing that. They are electing not to submit a final plat for some very logical reasons but we ~.~ere never told that there was no final plat and the platting process had to ~o through in addition to the financing and I guess I'm concerned that Hou~;inQ and Redevelopment Authority Meeting May ~7, 1990 - Page 17 ~.~hat.'3 going to happen is we're going to set up a plan that's going to have a number of key dates and then August 2st and 5th are going to come and go and the platting process is going to be held up for one reason or another !3e~aus~ t}~e final isn't submitted on time and proper notice isn't given or something like that. Pretty soon we're past the date and then we're into the s,~mc :-~ituation we are with the contract. The dates have all expired. Tl';z:oretically you no longer have an obligation to fund the outlots. If ~nfy car, t fund the outlots, they can't go ahead. Bernie then falls out of bed -and he's out of business so now they've got one more tenant so now theiY occupancy drops from 85 to 75. That kills Market Square and we set uF~ sor,',eth]ng that starts to come unraveled and we're building that where it's very likely to come unraveled. I'm not sure, I mean that's my concern. [4e found out tonight that it's not platted. I mean that was our understanding when we had some discussions earlier. That the property hadn't been platted and everybody was under the impression that it had been platted. NoN I don't know on final plat. I assume that if there are no significant changes, that's a matter of resubmitting it and getting it tal.;en care of administratively and it shouldn't take too long. But that's going to be a hold up that's going to push back that date. You know and I · 3ppre..ciated Don's comments tonight about the fact that he had an unwritten ag~-eement with the Medical Arts people that he would do certain things for them with respect to the Hendrickson building but we had some unwritten agreements also that said everything's in place and we're going to dig as coon as the frost gets out of the ground. That would put Bernie in his new place by September 1st but for some reason because of financing charges or things that ara out of control, everybody here, it kind of got away from us so I think we need to build in some kind of an escape provision where if it in fact slides a week or slides 2 weeks, the whole house of cards doesn't come down because Bernie's extremely concerned that he has a place. He has ¥,oF. loco else to go. He can't pack up and move lO miles west or lO miles south or someplace else. He has to stay here or he has to go out of business and that's a real significant event. I think everyone appreciates the significant of that event and the length of time he's been here in town. I would hope that we could work out some kind of a blended arrangement and I appreciate your comments on working on a blended aYYangement. I'm afraid if we set up a plan and make some iron clad commitments, something else out of our control may delay those a few days and I would hate to see the funding not go through which starts a house of gua;-ds to have the thing come apart. I don't know why, maybe Brad can explain why August ist or ~ugust 5th is a magic date. If you people agree to buy tine lots or if you bought one and some other developer came in and spl~t the other lot or whatever it takes to make it go and that's all they nesd is a commitment letter and the Bloomberg Companies are tgilling to proceed on that commitment letter because they now know the financing is in place, they're willing to plat it, it looks like only the Planning Commission and City Council approval would be necessary on the plat and they could start sooner. I don't know what, maybe Brad can explain what ~..['..e ma.~ic date is about August. Maybe there's another piece of the puzzle that I don't appreciate. l-lo',-n' I guess the question is, are we already building some time in here u;ith the August 1st date or is that a minimum? In other words, could this '- ~U . <jo ~.~efoYe gust 1st~ Hou3i~'},2 al;,:J Redevelopment Authority Meeting May 17, 1090 - Pag~ 18 ,.-..,,'-'"'a,d Johnson: The building... Ash~o~-th: One point if I may. I think that we have for the past 2 years contir, ue to have a relief mechanism in terms of people being able to come b:ack ~nd appeal here so if it's August 5th versus August 1st, I'm sure that Bel-r, ie will be back to see you. Secondly, I agree with all the things that Mr. Haefele stated. There is not a problem regarding the plat and again as ~sYk and Tom know, the City Council approving a site plan and also ~p~.rovin9 ~ plat, we establish a number of conditions as a part of that plat. approval. If they meet all of the conditions and put up the monies necessary to complete the public improvements and do the parking and the t ~ s:~:]-ed cross easements al~d all the rest, that plat does not come back to the City Council. If staff verifies that everything is correct, we sign off on it and it gets filed so there is no real delay, at least on the plat side. Whether or not there'd be a delay in getting the deed ready to go or co~nstruction plans by August 1st, I guess that 3ohn Rice would have to respond to that. .~ohr, Rice: ...delays in construction drawings. That's one thing I don't know anything about. The things that relate to the plat and the clearing up of various items of title are almost entirely thing that are in some fashior~ ~-elated to the city and the public easements. There's a sewer eascmer, t that ~oes right straight across the property. I think there's a ~'t.e¥1ine easement that goes right across the center of the property east 8nd west. Those have to be vacated. The City or pardon me, the bus stop i:~ to bo ~'slocated. Now there was a meeting in Chaska that, back in I thin in October, relating to the partial release of other, of the hotel property fvo~,] what is an erroneously described bus stop easement. Now so that has to be corrected but at the same time they're talking about relocating that ~ssemer, t and I don't know where and relocating the bus stop. I don't know what's happened on that. The street, Boucher Drive has to be vacated. Here's one of the things that it has to wait for things to fall into place before it can be done. Mr. Burdick is not going to agree to have Boucher DY[ye vacated when he doesn't know whether or not the development is going to ~o through so it's going to be done at the last minute or it's goin¢ to be ..~on~ after everything else has fallen into place based simply on a commitment that it is so good for everybody that there's no way that it's not going to be vacated and therefore we can assume it will be done. But to vacate streets and easements requires first collection of the names and addresses of all the people within, I think it's 300 feet and then the official notice being sent out and then the City Council holding the proper msetin¢ or is it Planning Commission has to approve the vacation. Those are things that take approximately, I mean just in consumption of time of doir, s the work, of giving the notices and conducting the meetings is certainly a minimum of 2 to 3 to 4 weeks so those are things that take a ce~-t, ain amount of time. Horn' :--lave you established a time line with all these items on it? John Rice: Basically my thought has been that it would take approximately .t months to do these various things. ~!orr,: So you don't have a schedule? i',c":.~in.3 al~d Redevelopment Authority Meeting ,May 17, 1990- Page 19 3Chh Rice: I don't have a schedule of each and every one of those things. l--~c:rn' Fly col'~cern in putting a hazy target on this is that I've had many pro3~,ots that I've run through since I've been in business and if I don't ~3~t t,p a time line and I don't set up a schedule and I don't set up dates that people commit to, they don't happen so that's why I lean toward s:ettin~3 dates. What makes me uncomfortable to set dates without a time li~e in place that we've considered what the events have to happen up until t:-:ia: point. I know you can sit down with Todd and he can tell you exactly ,how long it's going to take to get the things in by' here and here's our m~;etil-,o.' date~. He has all the schedules. That's the kind of planning I like to see to make a plan like this work. And it can be done. 3c;}-.,'.'~ Ricr' It car, be done. It can be done within a certain prescribed time period but it's also a matter of not doing those things prematurely bot.'.': be'Fore, hUrt, bet one you k~ow that it needs to be done. Number two, that H~-. SL:rdick ~ill agree. Number three, that one has reasonable ;.~.ssuYar, cg that in fact the pro3ect is going to go so they're not done p'.~'~matur¢.ly and then have to be redone or backed off and reinstate this ~.].atted ~treet or reinstate the water easement or reinstate the sewer line easomer~t. Reinstate the drainage easement. There are drainage easements t. hc]-.z-.. Thcve'~ an easement for pending and water collection purposes on th.:~ ~outhwe~t corner which was agreed upon' between Bloomberg Companies and t'.-.--~ City back in 1987. That has to be vacated, or amended at least to m l!z~w the psrking on the site. Those are the kind of things that have to b~: done. ~,t the same time there's no reason why that can't be done within ~, 2 mo;-,th period if people are interested in getting it accomplished. :--',c,r~-~: If August 1st is the date, I don't think we're premature in any of that starting now. 3ohn Rice: I'll agree with that. I mean it's not been a matter of not c:ta]'t[ng. It's been a matter of not starting the formal proceedings. All of these things have been discussed many times. IIo¥~-,' I can only speak for one but my preference is to set firm dates on this. Robbins: I agree. 3ohn Rice: Any other question for me? :-I,'~',-~-,' I would propose that we stick with our ~uguit 1st for the go/no go ~s~c.-. Ne pick a drop dead date of March 1st for Bernie one way or the othe¥. ~ither he's moving into his new building by then or he's out of business by then unless we get some other change that comes before us and that we go ahead with the rest of it as we laid out. what is that? ?-Io¥',':: That is the Modeen/Hendrickson building, that we negotiate to let ~ernie stay in his existing building until March 1st and we buy the [- k:.L:.~;.:, rig ~-J. lld Redevelopment Authority Meeting H~y 17, 1990 - Page 20 ::.!crkman: And the August 1st date would be the date whether we buy the outlots or not? ', 4 ¢-,'," r, : Yes. We would put the closing on those outlots contingent upon this being a go p¥oject. 'Workma;-,: Would it make, on just a side note, what's that fence going to cc;:F,t us fo]- the roof? $5,000.00 to $$0,000.007 Cc. rk. ardt: I'd say $5,000.00 roughly. Asl":u:orth' We had a r, umber. I thought we said $2,000.00 to $3,000.00. think those are details and again... !'.3'-krnen' I'm just wondering why, it might make more sense to let Modeen :stand for security for Bernie and give Copeland $5,000.00. Nhy put up a fence? Reduce rents over at Medical Arts with the money. Horn: I think he'd rather see the parking lot in. ~orkman' T just see us spending mor, ey. Horn: That's our negotiating position and again if we can negotiate a better dea~, we're open to it. Wo'r!<man: ~nd Dr. McCollum could do a lot with $5,000.00 or reduce rents over there o~- whoever. I mean there's all sorts of options. I think we !".ave: plenty of options here. Hob-n: What would you propose as our option? Workman: I think those dates are good but what if we don't buy the outlots by August lst? Then the March let date is no good either and then so by Au~uct let we'd know if Bernie's out of business again. Horn: Exactly. Workman: I guess I'd just as soon put a little bit better safeguard into keeping Sernie in business. Bob Copeland: Bernie does not own the land he's on. The Medical Arts building, he has a contract with the Medical Arts building. Workman: Yeah, I know the whole scenario but as Medical Arts stated, they've been getting assurances that Bernie would be out and Bernie's been getting assurances that other things would be going on that haven't exactly stood the test of time either. I think it's gone all the way around. We m~ght }nave agreements signed over here but they don't exactly jive either. llc~'~'n' The problem I have with that Tom is it seems to me that the only way ~e can ouarantee that Bernie has a business here is if Market Square goes ~.n. I don't know what other ways we have of assuring that. and Redevelopment Authority Meeting 1990 - Page 21 tgor kman' Well yeah and they've got a lot of money invested in it and they'r~ not, well maybe they're ready to walk away from it. I don't know. We made Bernie jump through a lot of hoops when he was going to potentially k,~.;.~l~ o~-, the Crossroads site and financially and maybe we need to start c~o~l-~9 that in the future with other people that are coming in so we have a lit. t]~-~, t,ett, er handle on who's going to hold up the process and who's not but I'r,', steadfast in keeping a businessman in business if I can and that's wh.--.:]°o I'm operating from. I'd like to see Medical Arts come in but I don't. ~-l~e to see that happen at the expense of Bernie if we can still work s~omething out. I know it's tiring but call me the elected official and ~..lack ~heep in the bunch. I feel something of a desire to maintain sc!r, ethin9 for Bernie if we can because we're within months of rubbing here ~l~g months in the construction, highway construction, parkin~ lot co;']stl-uction season is minute. If I ~row old as slowly as some of these thlngs move along, I'd still be in high school but that's my, my basic idea i~ t.-::~ keep Medical Arts in business satisfactorily and keep Bernie and call that greedy. I'd like to see it happen, however pie in the sky it is. have .an agreement with Medical Arts that says... ~o~'kman' And I think we've got a moral obligation with Bernie. ?o!]n: Well I think we all realize that Tom the last couple 3 years so it'~ nothi~,9 new you're saying right now. Workn',a~-~: Right and again, Bernie's not doing anything that I wouldn't do iF I didn't orr, that place and Mr. Copeland isn't doing anything different and if I wasn't in his shoes and that's why we're the referees and I just call it the way I saw it. H.o'r~]: What would your recommendation be? Put out a proposal and see if we get a taker on it. Workman: Okay. Just one more comment. I am not happy with the Target ~it. uation as it occurred. I think that was kind of a cloud of smoke for the situation within the partnership at Market Square and was just a fun-the:- delay. Clark, I like everything that you said. If we could keep ,~odeen standing, I'd do that. If we've got to have a fence, we've got to h.-~v.s ~ fe~qc~. I would lean towards Modeen and working out a cash deal with ~dr. Copeland to buy some time. I think we should move ahead towards the outlet ~o ~e can get Bernie a home and Merlyn's a home. I~e need a grocery store in town so that all the other half of the deck of cards that we have stgcked up, we can continue to prop it up and keep Bernie in business. Horn' What type of a cash incentive would you suggest for Mr. Copeland? Workman',: I don't k~ow. It's just one of those things to me, and I certainly can understand the situation with that building because I'd like t.o see it down too. It's just one of those let's tear it down for $500.00 ~n¢{ spend $5,000.00 over here logic and so that, if we're going to spend ~5,00o.00, why go to Century Fence? Give it to somebody who might spend it i~ town, I don't know. :.lo..zs'ing sr, d Redevelopment ~uthority Meeting Hay 17., :1990 - Page 22 Herr,' Would that be a workable deal? Dob CopelCnd: We don't want your money. That isn't going to solve our ~-:.--~,blei~',s. We've made commitments to our tenants. Some of them are already ~;'] there trying to do business and we've committed to them that we'll have 3eyed parking stalls and we did that of course because we had it in writing th, at the City was going to do this so we think we had every reason to make t..hes,-. ,;:ommitments to the tenants. $5,000.00 isn't going to do anything and we- don't even want to try to figure out how much it would be. What about the other proposal? Would that be amenable to you? sou Copeland: Which is having the building go down? My reaction is that f.'? the building, the Modeen/Hendrickson building came down right away, I don't mean a month from now. I mean like next week so that the City's c~.,,~r~.ctor could get in there and get started on the pavi~g of the parking lot and we could get our stalls that we're suppose to get by June let at i.n.'~.~t ~ometime in June, I think we would be willing to not press on this August let deadline for the Lawn and Sports site. Ho~-n; Maybe what we should do is turn the voting around the other way and get the three principle players here and find something that they all agre~ ~Ji.t~', and then see if it's acceptable to us. Bob Copeland: One other thing however. It seems like we're giving up ~-.~omet. hing but we're not really getting anything in return. Horn: Ursula? '.;rsula Dimler: I guess I have a question at this point. It's never been m,.-;.¢,e clear to me. Is it really essential that that building come down for the pavement to start? Can the City's paver not get in behind there? .n~.~.3 s plenty of room. They can get started and they can have a nice little portion of it down by June let. ^ ..1~. ; . . ~,..:.~...~ ~.h: To answer the question is yes. They could let's say move in and ato~-t working over at the Riveria. Schafer's concern has been that he k:~ows that as he moves his crew in and as they set up to start the grading and get ready to pour the curbing and what not, if he's watchin~ the building going down or knows there's a commitment that it's going down and it's going down while he's paving over there, it means that he can keep his c~-¢~ going ~'i~ht on through and be able not to take and have to pull them back off the job. He does not want to have to mobilize twice. So I mean ~.~ be knows the building stays, the building goes down. He brings his cre~ ~n one ti. me ar, d yes he could start 2 to $ weeks early. U~-:Juls Dimler: Nhen Country Suites going to start paving? Isn't it the :zame, Schafer also. · . C]cyton 3ohn.~on: Different contract. · ~-,:~h,4orth' Right. I would say within the next couple weeks they'll be h;¢ving construction meetings and I could answer the question as to when. ~!..':{;~:i;":.'.j an~J Redevelopment Authority Meeting M~}y J?, 1990 - Page 23 Clayton 3ohnson: They've already had that Don. They had that meeting this t. Jeek. ConstYuction meeting but I think it's a different contractor. A.'_-,?',~oYth: I'm sure that it is. C: ayton Johr~son' Yeah, they're in there grading right now. Don, what ~bout the retaining wall for the housing? Is that affected by this in any Wa y~'. Ge~-ha~-dt: Bids have been received and awarded and he has the go ahead to... Clayton Johnson: So that doesn't have anything to do with Modeen/ ,-,' 'ondr ¢:~hwor~'.h: No, he's to coordinate with Schafer but it really is a separate cor,t, ractor. They want to be in before they start laying the curb. Jeff Hanson: Can I make a comment? Horn' Sure. Jeff Hanson" My name is Jeff Hanson representing Chanhassen Lawn and · -_'.;;,.' .... --~'~. I ~uess just sitting here talking about this parking lot situation and I'm thinking about all the months that we waited and waited for our new I_,.; 'I .J' ~,.. ...~ng to start going and our customers had to trudge through mud and a p,Jrking lot to get to our store and dragging their equipment in through the r:]u~ b..'ithout any parking facility, a decent parking facility to think about. .T moan we didn't really complain about it. We should have had some red ~'ocl< h,~uled in t.o fill in some of the washouts and some of the mud holes and I look at the Hendrickson building standing there and they tear the b,_~ildJrl..9 down and to me the actual square footage of what is there for ~arking stalls to me is very, very little as far as what can be put in tb.~ere for parking stalls. What could be done and I'm sure dad has talked about it is having some grading work done around the building and leave the d.~rn building stand but grade out around that and like Ursula's talking about, is do a lot of parking lot work over on the east side so that the Medical facility has a good parking lot because I know what that means. We'. ¢{on't need all that dirt standing around that building. That is one of the proposals that we have on this chart. Mary Ann Hanson= I guess I just want to say one thing that I have noticed u~i':.',-~[n the last week with the traffic flying in my our building and flying by and 9oing behind, something is going to happen. To me we've got a f'~-~:.e,,4ay in front of us. Now it's coming in on the west side of us. It's also comin.g from the Riveria. ~nd another thing, the people over on Great °].ain..'-s Slvd. are coming in from behind Kenny's, using that as a straight thru shot up to Laredo and going to the post office and they are moving. Now :t's ba<J el',ou9h in front. What's going to happen behind? I mean we ~..¢,l:< to the post office. We walk to the bank and we're seeing this. Our '~-~o'-..:~.~in~ .'~nd Redevelopment Authority Meeting ~'~:,.-.' ~. 1990 -- Page 24 ,:;u.'-.tume~'~ are making comments. Geez, I almost got hit coming in here. J,-'.'c"F Hanson: Walking through the parking lot. :-~.-.>r:',-' Could I make a suggestion? This isn't our usual procedure but what ' would propose we do is get the parties to adjourn to a conference room 'tp.--c-..tair:s and come back to us with a compromise that they could all live ;aith. Would that be agreeable to everyone? You've got a lot of players in this and I think the best thing to do is to sit down and pound it out. Are >,o'.J ag'reeable to that Bernie? B.er ¥~i e J-lanson' Sure. ,--,o, ,-, Mr. Copeland? P.,ob Copeland: We're willing to talk. ,-,o~ n ~ Brad? Clayton? Ersd Johnson' Sure. ,: ,:-,: We va got some adminstrative things that we can deal with and if we oct through with those we'll adjourn until you come back with a solution. Rick }laef-'~le: Can we have kind of a tentative commitment from the HRA to acquire the lots? I guess to work from it, we're looking at one end and the rest of these guys are looking at what we're going to leave and we're ..-,o{'. anxious to leave if we haven't got someplace to go. I guess my concern i..s, I have a feeling from what I hear that the only piece left of the ~-uT.z. le is the purchase of the outlots but we've got 10 weeks between now and that date and if during that 10 week period the interest rate goes up a '...'~ percent or somebody's lease changes slightly, is there someway to pick up that. slack without having to come back to the well again saying oops, here we are again. We need another 50 grand. I mean I'm just wondering if · >:~¢, know that, Jf you people feel comfortable and if Bernie would feel c.Jn':fo~-table, that if you say alright tonight you've got it. If all the · ,-'..~s,t of thc pieces in place by August 1st, that it somehow cannot, I ':- ¢: .: .l ?. 'z o there ~f'e some things you can't predict but if all these people got. .... ,~-::; much r,,oney involved in it and they could certainly make a lot more c.:::{u.c::~ted ~uess than we can about the financing and if that's going to make it ::3o, then let's set these time lines and perhaps the timeline could be submitted to you within 10 days or something. To say this is when the easements will be vacated. This is when the notices will go out. This is when the commitment letter will come from the lender add so we can follow to find out how early it is that we can become aware that it's off the t:'ack again. Horn' I don't think we would suggest that you come up with a compromise if -~.,.~ ~..:r~ren't ~illin~3 to compromise on that also. If you'd like I could poll the commission to see what they say. Rick !{~'~ef61e: I had that feeling from you but I guess from the rest of the p~.c. pl~, I need something that says that's the last piece. That's kind of 14c.~u.s~r~ an,f Redevelopment Authority Meeting M,;.-.y ~7~ 1990 -- Page 25 .'.4h~t everybody says but nobody's gotten up and stuck their neck out very · f.>5i' . ,~ven Brad's. ~rad Johnson: I don't know what you're asking. ! ! . ,--..o'T-n: I thought you were asking us. If we were willing. ! ! R]c,, l-..a~'~,fel,~: I understood that's what you were doing. What I'm saying _: ,,~: HRA buys the two lots from you for the $150.00 or ~hatever i~ ~as that Don mentioned, is there going to be a bulldozer over there-pushing ~.~f. rt ~,'?' the ~Oth of August? ...~...~, Johnson: Subject to all those things you just mentioned. Things that ?'~ck Haefole: No new surprises. I mean subject to the vacations. I don't ..~-..:~;-:" ~.~rn:.'e to ~o out of business because of the relocation 6f a bus stop. Erad 3ohnson: We've got, how many contingencies do you think are in the financ~: agreement? R'c-k Haefele: I would assume that they would be listed specifically. .. ,...~. Iohnc, on: Probably about 30. 40 that we have to work through. Rick Heel,sis: Are there any of them that cannot be obtained? Johnson: We don't know. ~ic"~ }laefele: Who does? Johnson: You never know until you close. Clayton Johnson: The only commitment that you're going to have is when the construction loan closes and I'm sorry but I've been involved in the four p;-e.',;ious deals in town and it's been the same with every one. When the c-©n'.~truction loan funded the buildi.ng that's acing to be built and until t. hz~t I'm sorry but I don't think, and you can parade developers through h~:¥e f'¢om now until Christmas and I don't think you're going to get a different answer from anybody. ;.',oYn: Unless you don't need financing. C'~yton Johnson: Unless you don't need financing and you can build with ~,~,~ and I haven t run into anybody who's prepared to do that. We had a cjuy wl;o came to town a few months ago...and I haven't seen anything there Rick ~la~fele: Maybe we ought to go talk. i!o~-,'.' That's what I'd suggest. Do you have a conference room for them Todd? H'.~'u?~r,g and Redevelopment Authority Meetin~ ~'.I~,' 17 ~ I'2,90 -- Page 26 can use the one straight up. Brad 3o'.:n:son: Can I do the update while they're gone? Sr.~d Johnson: The only other thing we want to make sure happens is, Bernie has not sigrled a lease to move into the new center yet so we have to work theft t lnrough ss part of an agreement. :-lorn: I assume that will be part of the discussion. APPROVAL OF MARCH AND APRIL BILLS. Any discussion on the bills? Dohn: These were the old bills that we asked some questions on weren't %.hey? Robbins' These were the two bills we had questions on. Horn: Still have questions? Robbins: No. I would move we accept item 3, bills paid for March and April. Wo~- k.man: Second. Robbins moved, Workman seconded to approve the March and April, 1990 Accounts Payable for the Housing and Redevelopment Authority. All votedin favor and the motion carried. Ashwort. h: I should not Mr. Chairman, if I may, included in there is a check over to Northern States Power and the accounting for that looks a l~ttle hazy. I sat down with them to verify it was in accordance with the original m~reement. If you remember correctly when we got into the dcwntowr, pro3ect, they had wanted to take and see a payment made over to them of $106,000.00. Actually it was started at $330,000.00 and it was ].at~',' neQotiated down to that $106,000.00 figure. Horn: I think it started lower than that at first and then when it came through it went up to $130,000.00 and we got it back to $106,000.00. A:~hwcrLh- It. was to like $330,000.00 at some of those first meetings but sr,y~y~ what the accounting there shows is that we did receive approval from NSP where they would take and give us a credit for the additional revenue that wss being generated as a part of new development within the downtown. That credit then would be applied back to their cost for undergrounding in the downtown area. What this sheet here shows is that part of the agreement said that we would pay an interest cost. The principl~ amount though would be held off to see if credits would balance. As of right now basically we are assured that that full $106,000.00 will in fact b~ a ¢-redit back over to the City or in other words, that note will and Redevelopment Authority Meeting J. 9"30 - Page 27 n~:_.-ver be paid. We will not have to pay that note. $o in other word~, the c~-'J"tc w¢~ receive for energy within the downtown associated with the new f~,::-:litie:~ will be sufficient to pay off that full $106,000.00 payment that t'.'..ey h~,cJ originally wanted to see us pay. RECUEST FROM THE CHANHASSEN GARDEN ASSOCIATION FOR FINANCIAL ASSISTANCE. ~¢-.~ h~rdt: ,q. asically, I said through the efforts of Mayor Don Chmiel, I gu-_-s~ I didn't give credit to enough people. There have been a variety of ~,eo~le. tI~a~, havc~ been interested in seeing something, flower garden in th~ dc:.:ntown. ~lowers planted throughout the downtown and all the Chanhassen council mer,,ber~ and 3in and Charlie, I think Clark has mentioned it to me too~ that they wanted to see some type of plantings, flowers, colors in the d¢,t~ntown area. $o I. did take an ad out or ask the newspapers to run a :~re:~:cn'!;atior] through their paper and request for volunteers to participate - ir, a garden association. Attached is a list of those individuals who have volunteered. I've seen people, businessmen and residents in Chanhassen who b.:o%:Id like to give it a shot in starting a Garden ~ssociation. The problem that. we run into of course is when you have volunteers you don't have any ,-r.c-.'.~.y ~r,d to plant flowers it costs money and the soils that are down in the median...rocks and clays and some topsoil and those areas that I've hi~hlighted on here need new topsoil. To fund that we are asking the HR~ to up front us the money in that we would solicit the downtown businessmen f.&'.- c!,~',nations to go towards this association in beautifying and providing colo~' in the downtown. However, one change in this would be that and · ...,,arlie-s not aware of this, I've talked to Dale Gregory and Charlie, the mai~,tenance men for downtown, and they've suggested that we stay out of the ..-nedimn tips just due to the traffic. They just have real concerns. I've }-,~:c! york. al. t.alks or communication with our insurance company and they're advising us not to do that... (T',-;crc ~as a tapc, change at this point. No action was taken on the above i tern. ) DISCUSSION REGARDING DEMOLITION OF THE MODEEN/HENDRICKSON FACILITY AND CONSIDERING ACQUISITION OF THE CORNER OUTLOT IN THE MARKET SQUARE uEV,-LOPMEN. CONTINUED. '-{o~.-n: Did you appoint a spokesperson? Why don't you tell us what happened Sevnie? This is like bridge Bernie. If you're keepi'ng score, you get to ,~i'~'e your -'nterpretation. ~-'~-k ~-:aefele' I don't know if we need to make a drawing. I think we can e~tl~r,a- it. Bernie has agreed, there are some companies that rent tcmporaYy storage. They're metal storage buildings approximately the size of these things that you see on railroad cars for carrying containerized storage like a ~emi but it doesn't sit on wheels and stuff. It's a free standing box. ~e need two of those with a truss roof over the top of it -~,~hich t~ould be just a temporary roof, temporary structure. The comments ~¢:emed to be that this could be put up at a nominal amount. Some of the benefits that's there can be used to cover it. Gary Cooper's also agreed '.zo c'!cnat, e ~ome fence for the use of putting this in so it should be a p;'eL, ty minimal co~t and that can be, someone I'm not familiar t~ith, maybe Hou~inc4 and Redevelopment Authority Me~ting Hay 17~ 1.o90-.-Page 28 are, a fellow named Smith. Is that correct? Cl..'~.'>'tor; ..Tohnson: Well we suggested that the contractor might be able to do i-.I-,ia: ~-.1 sn~it.~ just because he's kind of a jack of all trades. He works in th--'.~, ares and probably can get it done fairly quickly. 9:.'-:k Haef~.le' It'~ just a matter of leveling off some gravel. Setting two of these things in. Putting up some fence and putting a temporary roof or.si- the. top so you don't have to worry about snow loads on it. That fence '..',-.uld he ~mmediately west of his on the northwest corner of his existin9 .~:tockade which would premit the removal of the entire Modeen/Hendrickson build'~.~'~3 as soon as this was up. We ~uessed it would take outside of 2 ~.'a:.'.kc t,.', 9ct it up. Bernie needs 7 working days to move, he needs a weak to. n~ove. That would get him out of there presumably in less than month. T!;-' k:u~].di~]g could then come down. All the rest of the construction would --.~ a!]~ad. They were comfortable, Medical Arts people were comfortable with ~ ?.~':-c-h 15th date on the other. Removing the other structure contingent on thc.. purchas~ of the outlets and permit that project to go ahead. We talked ~.:.~c, ut Market Square to some extent and I guess we feel comfortable that that's the last piece. The rest of them are kind of mechanical, · -.-~dn',ir,~strz~tive sorts of things that will be worked out in due course. T,h~":-e'~ no other difficulty. They don"t anticipate a jump in the interest ';-z't...~- o'~ ~. %/2 or 2~ in a matter of 6 to 8 weeks and Amcon, I guess eve;'ybod¥'s committed enough that they feel that things will ~o ahead and that the ,~uc. just, I guess the August 1st date that we talked about was okay. I'm not sure where August 5th came in but at least by August 1st they would have a comm~tmerlt and they would know that that's the date that you could · Dlac~. in the arrangement with perhaps a 5 day delay or something like that -.if th~--:~.'..-'.-', were solr, c~ last minute detail that needs to be worked but they're c,.~,;,,~o,'t, able that they can go ahead with that. That seems to be the last p~.?-ce of the puzzle. There doesn't seem to be any other pieces. App~re~tly the leases that are there now and the people who don't have :.ease-- because of the time riding on them, have agreed to extend their a',-r~;]f!ernel]ts long enough to keep that commitment in place. So if I'm wren9 c..., my dates. Clayton Johnson: Bob had one other contingency. ..... ~:~ Copeland: I guess we dorm t call it a compromise. We call it like wha ~--..lse can we 9et? I mean we're not going to get our parking lot by June Ist .~;-_' p¥cm;ised and they're not going to be gone by ~ugust 1st as promised so 9~',--.s:.¢ ~e just say okay, those dates are going to come and go so we don't fee] ~'.e have a lot of choice in the matter but our number one priority bo~!d be to get that Modeen/Hendrickson building down and this would ;:~c'.complish that. We expect then that the City would get their contractor onto the site to get started and work where he can work. In other words, · .:,~-;r~ is a good part of the site in front of our building that work can go c:-~ s;-,d we could get some pavement down for at least our anchor tenant, the clJ.~,ic there. The other thing, I know that you people don't have anything to do with it but I'm tacking on there that we have a request for approval fo,'- sc:m~.'., si~nage on our building in front of the City Council right now and z.. s within the ordinances and we expect that to be approved. .--,,~us~.ng and Redevelopment Authority Meeting 17, 1990 - Page 29 '.~-.'.'.'r-: Yo',.;.'re ~-ight, that's not a part of our. ~..:d ~ Cope. land: T know i --..:.'~bb~r,s: Toc~d, is there any reason why Schafer cannot be there fairly ..,SL !. .-: k l>' and ,.start doing what Mr, Copeland was asking for? 3-,erha¥c~t: As Don stated earlier, $chafer is ready to come into the · :.-c~.~,m,..:.~ity. ~11 they wanted to do is to know what is going to happen with tkc Modeen/Hendrickson building. I's it going to stay? Is it ~oing to go? Or.ce th¢;y k',-.ov: that they can establish their schedule and they can know :~;!-,st ~..~r~a:3 they can work in and what areas are going to be curbed and what .,'.,~ .~as aren't. They do not want to come into the community twice. .qobb~.'n.,~: No, but it sounds then like the Modeen building will be going ~1 . i · ' ,-.~,~,~. It sounds like it s going to be 2 1/2 weeks of getting that t.'3r.,~orary building in place and doing some moving so is that saying the;-: it c'..~.~',~ sts.]-t then? ~ ..... hordt: Yes. '!.,-~'r'r:: 2,0 I guess what we need to do is to form a concept motion that would .¢onc-lu.c':e acquiring the two outlets. na;dt: There's one question that hasn't been answered is who pays for '~".~s. two storage containers, the construction of th~ roof section and that a~'s,~C The fence around it. £1.~yt. on ~ohnson: We 8m~ thmt ~n light of it ~thin your budget that you ml~'ead>, proposed for ~ temporary Hc'r n: $3,000.007 C],~.yton ~ohnmon: Whatever that i8. I don't kno~. W~ th~nk that that's do~ble. Tha~ thsb 8tructure ~Lll b~ in plmo~ from no~ untL1 March. k~o','n' Z'd 8uggemt that ~e put a map to oontribut~ to that. Robbing;: Cap of ~,000.00. ~c~'c-b i ns: ~S,O00.O0. Wel}, ~hat '8 i.lorn: ~le don't kno~. We can oomm~t to that ~r,L:bins: I ~h~nk we had committed ~,000.00. ~cf'~ Hat, con: If I can poLnt out something here 8o you'r~ ell m~ar~ of ~hat ':-~,33 ~'o take place. When the Hode~n/H~ndr~okmon building goes, that wLll b..': r~ c[',s~nlinked fence all the ~ay aorom8 the north 85d~ plus ~'vm got to :-.~:~..'e a cha~nlLnk around the p~r~m~ter of ~'.';~::s:c- ~'~'a~le~- con,air, er unit8 becaume you can take a cmn opener and open __. ~i:,:.:.-°:';r,:~ .~ncl ~edev.~.:loDment Authority Meeting · .,.':y I?, 19QO - gage 30 I.. ! ~.~.c..',l' u.p aRC ,jet acce=~-~-_ ~;nto it . We also have with a chainlink fence ac',-os:s t!-,.t b~c:k ~ide, there has to be a Qate here. This piece of fence that would ,.-~ c.u'~- ex~stin9 fence would just disappear, we thouQht we could just take ..c~.':d p~.:t that up here...so we have access through here... (Ere'fy'one wats talking at the same time at this point.) Part of that motion then would be to say contributing factors from c~1:y fo~' the temporary storage in the amount of $5,000.00. Robblns: I would say that amount, $5,000.00. '.:om' I as.~surne we would have to get this agreement reviewed by our legal .jr o.. :~'. ?' .~.),'~.>,cr._h- We have an agreement with Bernie. We have an agreement with the Medics.].. I would propose that we modify each of those two and similar to the pac:t, each of the parties initial that modification. :-: : ), Ck~-y I would accept a motion to the concept we've described. ~.~.:.,~i'n~: So moved. ,::0 ,Ti '.J~:','k;:z~n' FIo~ is the outlot question plugged into this? Ho','n: The outlot question is we'll know August lat. That's the August 1st date Horn: He're committing to get everything in place by August lat. A:sh~o'rth: You're authorizing staff to prepare basically the purchase .s:gre~n':o:nl'.~; that would take and include the March let or 15th date. :lu; .... Do you have all the details Todd? Robbins moved, Bohn seconded that the Housing and Redevelopment Authority direct the City staff to modify the agreements Nith Bernie Hanson and the Medical ~rts partnership to include the dates of ~ugust let and March 15th as deadlines and the HRA Nill agree to pay up to $5,000.00 for the temporary storage unit for Bernie Hanson as replacement for the demolition of the Modeen/Hendrickson building. ~11 voted in favor and the motion carried. ','o~'kman moved, Robbins seconded to adjourn the meeting. All voted in favor . I ~'.,~.. t.h~ motion carried. The meeting was adjourned. Su.~:rl~.~tt~d by Don Ashworth ...... iv':-: Director · ·-.-i.,.-:,'r'ed by Narln OpheJm