1990 09 18HOUSING AND REDEVELOPMENT ~tJTHOEITY
REGUL/~R MEETING
SEPTEMBER 18, 1990
Chairman Horn called the meeting to order at 7:30 p.m..
M~MBE.RS, PRESENT: Clark Horn, Charlle Robblns, Jim Bohn, Tom Workman,
and Don Chmiel
ST~FF PRE~NT: Don Ashworth, Executive Director; Todd Gerhardt, Asst.
Executive Director and Paul Krauss, Planning Director
APPROVA~ OF MINUTES: Don Chmiel moved, Tom Workman seconded to approve the
Minutes of the Housing and Redevelopment Authority meeting dated August 16,
1990 as presented. All voted in favor and the motion carried.
UPDATE REC~RDING THE ~RKET S~ D~VELOI~T.
The taping of the meeting was started during Don AshNorth's presentation of
this item.
Don Ashworth: ...It Nas our belief that at issue here is really one of
insuring that the developer starts the construction of that center as soon
as possible. I don't think that we really want to get into a discussion as
to whether one tenant is better or worse than the other. As long as they
meet the overall guidelines that have been given to them. 80,000 square
feet within a specific period of time. 120 total. Total incentive
package, etc.. They were to have commenced July ist. Staff would
recommend that the HRA simply inform the developer that it's his
responsibility to get this project going immediately or that if he does not
have it commenced within 30 days or whatever number of days, that we're
cancelling the contract.
Horn: Any discussion from the members?
Chmiel: Was the developer going to be here?
Ashworth: I thought so. I recognize a lot of faces that [ know are all
associated with this project. But I do not see Brad. He's fully aware of
the item. He did have the report. He called me on the report. He did not
appear to have any questions.
Workman: If in fact we cancelled the contract, what happens?
Ashworth: I think the people sitting in this room are the ones that really
suffer.
Workman: Do we or should we then be developing, well or to what extent
should we be developing alternate plans to develop this site or other
options. I know we have then potentially two major retailers who may not
have anyplace to go in the city. Should we be looking for options in that
regard?
Horn: Again, that's something that a redeveloper does. We don't set those
plans. Obviously what we're trying to do is put pressure on to get them
started. That's where we're coming from on this thing and ! guess I'd like
to open it up to any suggestions you might have that would help us make
Housing and Redevelopment Authority
September ).8, ).990 - Page 2
that happen. If you have comments on that issue.
Mrs. Hanson: We don't get any straight answers you know. They keep saying
it's financial and we've got to solve this little problem. We're got a
little glitch here. We're not getting at what is the real problem. We
thought maybe you might have some answers.
Horn: Really our only option in this thing is we have a contract date that
Ne can push for, and that's really the only pressure we can put on this
thing is to try and push them to meet that commitment.
Mrs. Hanson: What's taking place with Cooper's you know? We heard that
he's probably not going to go with it. They're working on another grocery
store and it sounds like it's pretty much secure but we don't get any
answers. We don't get any answers and it's just, give us a little time.
Trust us. I'va heard that for too damn long.
Horn: I think we're both struggling with the same problem. What we need
to do is.
Mrs. Hanson: Well what happens to us come March 15th of 19917
Horn: Believe me that's a real concern of ours also.
Mrs. Hanson: And with the economy, ! mean let's face it. It's happening.
It's a real world and it doesn't look good.
Horn: Again it doesn't help us with a question of what can we do about
it?
Bernie Hanson: I guess the question is, actually there's been some
meetings as Don addressed between the staff and the other person mentioned.
Where are we sitting on track? I mean has it all fallen apart or his
comment about the leasee's and how much is happening. That's the way we
keep getting our answers. A little piece here. A little piece there.
Mrs. Hanson: Another thing I want to mention as I mentioned to Tom is no
one was aware of it is that one of the last meetings we had with our
attorney, this is maybe 3 weeks ago now, was the fact that this square was
going to be put up. That there was not going to be a building on the south
side of us and there would be open space between us and Cooper's and it's
like, whoa. Now wait a minute. What's happening here? He knows he's been
having a problem getting enough tenants because of the size and everything
got smaller than what originally had started out to be. And I said this to
Tom about this vacant space, hey. Maybe we can move some for expansion. He
says, wait a minute. That thing was planned as a whole one solid piece.
Now what's taking place there. If you weren't aware of it, how can they
proceed in doing these things?
Horn: Really we can give them general guidelines. You can put up this
much square footage. This is the concept of what it is. This is the
financial arrangement that we can work out but when it comes to specific
details of whether the space is moved here, as long as they meet the
overall square footage, they've met the guidelines that we've laid down.
As long as they meet the architectural renderings and that type of thing.
Housing and Redevelopment Authority
September 18, 1990 - Page 3
But ! 'm sure there are a lot of rumors flying around. I hadn't heard that
one but.
Mrs. Hanson: You hadn't heard that one?
Bernie Hanson: Don, what was going to be your comment?
Chmiel: I guess I have concerns with your problems. Where you want to be
at that particular time. I'm hearing different things too and one of the
things that I Just recently heard was, who knows maybe there's another
developer ready to go. If we move on this particular developer, do we have
anybody else standing in the wings?
Ashworth: I have not had any other parties contact me showing an interest
in that site or any similar type of development in the downtown area.
Gerhardt= I had one individual express that they would come in and do the
same development. ! don't know if that would occur or not occur. In
today's market and financing as difficult as it is, I don't know if it
would occur but somebody has approached us, yes.
Chmiel= Why don't we reapproach them and see where they're coming. At
least we can have something to lay back on and if they could be ready to
move as quickly.
Gerhardt: If anybody else was to come back in, they would have to go
through the City Council approval process and I think Don has had
conversations with Brad and you and Clark and I think Don should just
emphasize again that we're Just putting a deadline on them to move them
along. I mean we're doing everything in our efforts to make sure that they
move swiftly and I don't think that they're trying to back off. It does
take a while to get some of these things put in place. Getting tenants to
guarantee leases which the financial agency likes to see. Determinations
on which grocery store. You have the one that you talked about in the
first place. Cooper's who you feel that you have some loyalty so that was
the first person they went to. Mr. Cooper's father passed away. There's
some question if he can even fulfill the obligation or would want to
fulfill the obligation. So I mean there are some hurdles on their end that
they're trying to Jump over. I would suggest the HRA move ahead with a 30
day period. If they do not proceed within that 30 days, that we look at
some other criteria to place on them or to look at another developer but l
will take and talk to this other individual if you want.
Chmiel: Yeah.
Horn: Do we need to have this deal finalized before we could entertain
speaking with another developer? What's to stop another developer today
from giving us a proposal?
Gerhardt: I think he would be just hesitant to come into a place if we're
still working with the other one.
Horn: He obviously knows the situation that we're in effect in default of
our original target.
Housing and Redevelopment Authority
September 18, 1990 - Page 4
Gerhardt: I don't think it's a clear cut thing to bring one guy in and
take out another because one of the partner's in the deal owns a large
percentage of the land. He may not be a willing seller. We don't have
control of the site that we can take 3ce slow from here and Sos Blow from
there and say come and build this retail center.
Horn: No, but we can listen to what they have to say. I mean that's their
problem, not ours. They would have to overcome that and work ~ith it.
Gerhardt: And that ~ould be a lengthy process.
Horn: That's my concern. I don't know that another developer at this
point would solve your problem. I think it would be too late.
Chmiel: Yeah, to help everybody here. That's right.
Bernie Hanson: Nell excuse me, am I picking up that there's bunch of
leasees now that have sort of stepped back because of the delay or
hesitant? I mean I've been told along the lines that we had 80~ of this
leased, take or give a few percentage points. Is this strictly all
conversation? I've also heard there's a loan commitment from First Bank of
Milwaukee. Right Todd?
Gerhardt: I don't know who the financial agency is.
Ashworth: It is our understanding of the late that the financial
commitment has been given. That financial commitment however requires that
one of those leases which is the most major lease there, has to make a long
term commitment lease or has to be willing to put part of their money into
the project and that's where there's been reconsideration or maybe it's
just been an inability to react or to follow through. I think that the
developer is looking to potentially replacing that one tenant and you don't
want to go back and try to get a new loan commitment and go through that
whole 90 day timeframe again. If he can simply meet the requirements by
getting that one person to make either the lease commitment, which they
feel that they do have a substitute for, or willing to put their money into
it.
Bernie Hanson: That's part of the story that I've heard myself so what is
the...
Horn: What's your feeling about our proposal? Giving them 30 days.
Bernie Hanson: I don't know what...you try to sit here and analyze what
you're really saying...and yet try to make it to happen. I'm interpretting
what you're saying, we're trying to do everything we can...because I know
the position that we've been put into. It's going to happen. Promises and
promises and here we sit with a wall in front of us. But that's why I was
curious if anybody knew what was happening on the lease side. Are there
some people backing away because of the time element and I can understand
this. $omebody's got a lease and this thing keeps dragging on and the guy
says I've got to go someplace to be in business. He can't put up with it
forever either. I mean there's two sides to it.
Housing and Redevelopment Authority
September 18, 1990 - Page 5
Horn: I think the thing we have in our favor in the timing right now is
the fact that you're really not going to do any construction until spring
so you've got this little buffer that you can catch up with but that's
going to run out very soon.
Gerhardt: If I could answer the question regarding the space that lies to
the east of Chanhassen Lawn and Sport. The City Council approved to the
site plan of Market Square. There was a building addition to the east of
Bernie's site. They have looked at taking a portion of that out of there.
To do that they would have to come through some type of administrative,
City Council approval for the elimination of that space and what would
happen in that area if the space was not filled. Ne talked to Paul and he
has confirmed that it would have to go back to the City Council if that
space is going to be taken out. Ne would r~Jt issue a building permit for
that because it would have to have site plan approval as the City Council
approval. It's nothing we should really be concerned with.
Workman: So my amazement at that information was based on fact, not
ignorance?
Gerhardt: That's correct.
Workman: Thank you. Todd, you and I were talking prior to the meeting
tonight about the economics and the mechanisms out there to making this
thing all work. Do the developers of Market Square and this whole group of
which I guess I'll include 8ernie and everybody else in the city, do we
have so much time, money and energy invested in this thing that it has to
go or do enough people have enough money invested that they would end up
losing. That it's a very good free market mechanism to say they should go
ahead and do it or are they going to be so frightened out with the economy,
etc.? I'm asking you to predict something maybe that you can't but is
there enough at stake here for the developers to move ahead?
Ashworth: I would say that there's been at least $100,000.00 to
$200,000.00 spent Just in plans associated with that project. Well over
$200,000.00 spent in carrying costs. To restart and let's assume that they
entertain whatever developer, you're talking about almost a one year
timeframe to restart thinking. Submit to Planning Commission, Council,
plan sets. I'm sure the HRA would want to relook at the entire premise
under which that original contract was developed. You're talking about
major time commitments and 81oomberg, who is the underlying owner, has to
realize that. I mean there's not only cost factors in dollars that are
already out of his pocket but in terms of the incentive package which has
been provided which is likely that it would not be duplicated. If anything
they would probably be lowered if there was a re-examination. I think
Bloomberg knows that. I think he'll do everything he can to take and make
this thing happen.
Chmiel: The thing that amazes me is that they're always here for every
meeting and never missing whether they're discussing their particular
project or not and it bothers me to see that they're not here.
Workman: Did they think it was Thursday?
Ashworth: Well they received the agenda. Again Brad stopped in.
Housing and RedeveIopment Authority
September 18, 1990 - Page 6
Chmiei: And he confirmed it.
Ashworth: Do you recall if anything was said today that would lead us to
think that he...
Gerhardt: No. They usually know more about it than we do.
Bohn: Just one comment Don. I guess in reading this, and I do recall
because we have put a lot of time into this and making a contract. We've
all worked on this. I do recall this summer we were talking about some
dates. Now I'm being a little facetious but is it possible that we're not
working with the same contracts and they've got a different date on theirs
other than the July 1st date and they're looking at another start date
rather than that date? We talked about July. We talked about August. I
remember we had a date for October in there. We had a date for Bernie
of March. I mean the point is, we had more than one date here and we might
be talking apples and oranges in the sense that they're thinking one date,
we've got another. I guess the point is, can we contact with them, not
officially but in terms of just questioning. Are they aware that they'll
be on this date?
Ashworth: I would not doubt at all that the development contract has a
different date than the July Irt date. However, they've acted as the
redevelopers. They've presented to us that they're going to help get
Bernie out of there. They've been fully aware of the dates.that we've
given over and have worked with in terms of again the timeframe with Bernie
would have to be out of there. I Just would not accept a position that
they did not know that they were supposed to be breaking down the ground by
July 1. We can ask the question and I think they would come-back and say
our development contract is good through blank but they also have a
responsibility to notify us if they can't meet subsidiary dates that we
give them during meetings that they're sitting in at.
Mrs. Hanson: I was just going to make a comment. When Brad was in, which
was probably 2 weeks ago Saturday and he said there's been a delay. Now in
our contract that we've been working with, August 5th was ground breaking.
That was it. That was going to be it. We have a February 1st for an
occupancy date that they have been basing everything on. That's what's in
the contract papers. February 1st. When Brad came in he says, there's a
delay. Nothing to be worried about and he says I've talked to Bob next
door and he says you don't have to sweat a thing about being out of here
by March 15th. [ says whoa. I've got it in writing. That's when he was
going on about the financial things and the fact of Cooper, it was in
little bits and pieces.
Horn: First of all, that date was not with him. That date was with the
contract that we have, if I'm not mistaken. He doesn't control those
dates.
Mrs. Hanson: But it seems like he does. He tells us not to be concerned
about it. Just don't worry about it. It's all going to get taken care of.
We just need a little more time. He says, we could be looking at maybe a
year before you're into it. I said, a year?
Horn: Well what's the feeling from the board?
Housing and Redevelopment Authority
September 18, 1990 - Page 7
Chmiel: Mr. Chairman, I'd like to make a recommendation that we grant them
one more month. At the same time get our feelers out to see if there are
any other developers that would be interested in developing that. If so,
we could possibly hold special meetings to accommodate that developer to
see if we can't keep on the same timeframe.
Workman: So you're saying 4 weeks?
Horn: 4 weeks in the blank?
Robbins: Maybe if we're working with the same, rather than put weeks put
the actual date in there.
Chmiel: Yes, we need an actual date.
Robbins: Rather than weeks.
Chmiel: That's right.
Horn: Do you want to set another time for the commencement of
construction? Do you want to specify that at this time?
Workman: Isn't that what we're saying?
Horn: No.
Chmiel: Immediately after those specific date that we have. Construction
will take place on or about, we're looking right now at the 17th. 1, 2, 3,
4, on or before October 15th.
Horn: Is that the right duration from signing the contract to commencing
construction? Is that the right time period?
Ashworth: Well they have stated, Brad said to me that they could have
everything completed within 30 days.
Horn: Is there a second to the motion?
Wot kman: Second.
Horn: Further discussion?
Bohn: Comment? With regards to that, is it also possible to send a notice
out as well that they are in violation of that date now as well? So we've
actually got two items going here.
Workman: An amendment to your motion?
Horn: Would you like to include that in your motion?
Chmiel: I would, yes. Would second accept that?
Wot kman: Yes.
Horn: Further comments?
Housing and RedeveIopment Authority
September 18, 1990 - Page $
Chmiel moved, Norkman seconded to direct staff to ~rtte a letter to the
developer of Harket Square Development advising them that they are in
violation of the contract with the City regarding the starting date for
construction and that they be given 30 days notice in which time to
commence construction. All voted in favor and the motion carried
unanimously.
Bernie Hanson: I don't know if this is proper with ail your procedures but
we keep moving these dates and we all know that we're setting the dead date
to be evicted. Is there any connection that a person can amend our date to
go with that? You know this thing is moved now until October 15th and
we've got a contract that says February let for occupancy.., then there's a
March [Sth date, April 1st or something. I'm about as confused as
anybody I guess sitting here.
Ashworth: I would recommend that you modify the motion to include
instructing staff to determine the feasibility of being able to do that and
talk with, so that would be an opinion of the City Attorney as to whether
or not we could do that without getting in violation with the Medical Arts.
Then it would be a matter of talking with the Medical Arts. In addition to
the...
(There was a tape change at this point in the discussion.)
Horn: ...and that is, it seems that we've either got to get the thing
started first and we've done that with the initial motion. What I think we
can do is to ask staff to check the legalities of changing these other
dates. Upon successful completion of our first milestone which we've just
set, then we would look at adjusting all the contract dates. Would that be
appropriate Don?
Workman: Otherwise we may not need to?
Horn: Right. Otherwise we may be wasting some time. Is everybody in
agreement? Okay, let's move on.
UPDATE REGARDING THE CROSSROPd:)S NATIONAL BANK PURCHASE ~MENT.
Ashworth: My recollection is that we had discussed the item during HRA
meetings. I know that I've talked on the telephone. The question really
became one of is there a way that we can entice Crossroads to move ahead
with their development. The correlary to that being from the City
Attorney's side, if the bank is not going to become a reality, the sooner
they would acknowledge that and we can start a potential new bidding
process, the better. So I guess the question really becomes one of how
would you like us to proceed? I have to admit...contact bank officials
prior to Tuesday. I forgot I wrote that.
Horn: When have you talked to them last? Or anybody from the City.
Gerhardt: Oh geez, a month ago?
Horn: A month ago.
Housing and RedeveIopment Authority
September lB, 1990 - Page 9
Gerhardt: At that time I called them in reference to where they were in
starting their project and they said that they were still trying to work on
organizing the bank and that they had hired an attorney in Washington D.C.
to get their holding company structure through that agency out there that
approves the holding structure for the bank. Right now they have it
structured like the Savings and Loans were and that's held up in that
agency and they don't want to approve it. So they've hired an attorney out
there to try to push it through. I haven't heard since if they were
successful in that or not.
Horn: I'd like to suggest that we keep close contact with these people
that we're in negotiations with on this project and I would certainly
volunteer my time to meet with them also, if we could set up some type of a
noon meeting or something and I suspect the Mayor would be amendable to
that also. So we can keep these things moving and keep in contact with
these people. I know we're in tough times now but I think we have to try
to keep the pot stirred on these projects.
Robbins: Because I do recall the memos that we had received. There are a
lot of dates again that we played with on this one. As I recall, there was
a go, no go date of llth of November or 9th of November so technically
they're not in default yet.
Workman: But again you know, it's Market Square. It's Crossroads Bank.
It's Redmond Products and I think there's a trend here.
Horn: We're well used to this trend. We went through it about 8 years
ago. Fortunately we're in a much better position today than we were then.
It in effect stopped the whole program at that point. At least we've got
something going and it's a financially viable operation at this point.
I'm not surprised that we're going to see this and we've been through it
before. I guess all I'm saying is the timing is a little better now than
it was the last time this happened. But I think you're right, this is a
trend. Anything else on this? Any other questions?
CONSIDER ACQUZS[T[.O.N OF THE LOT LYIN~ E~ST OF THE H~S SITE.
Ashworth: Again, I feel uncomfortable talking about this without Mr.
3ohnson being present. I prepared the report, of course that was in
concert with his request. I think that the acquisition makes a lot of
sense for a whole group of reasons. Acquisition price is reasonable. Ne
are carrying out other acquisitions in that area. I think it simply
supports our position regarding price. The property is very difficult to
take and serve. If there is any type of a request back to the City to
develop that, I think that the HRA is going to want to be vitally involved
in that. The visibility from TH 5 is very strong. I would think that
having control of that site, recognizing that the condemnation process of
the TH 101 realignment we are acquiring the Taco property and the
Red-E-Mix. These two lots would be literally the next in line. If Brad
would be willing to sell those for basically what he has paid for them.
Again, I feel uncomfortable talking...
Horn: I suspect this doesn't have to happen within the next month and I
think there are a lot of other activities going on that are going to keep
him busy. I'd suggest that we table this until our next meeting.
Housing and Redevelopment Authority
September 18, 1990 - Page 10
Robbins moved, Workman seconded to table act[on on the acquistt[on request
of the lot lying east of the Hanus site until the next meeting. All voted
in favor and the mot[on carried unanimously.
Workman: What does the final cost of this come out to be?
Chmiel: $230,000.00.
Robbins: But again Don, the way that memo was written, it was actually a
proposal because I would think that we would be liberty if we were quite
serious about this, to make a counter offer back because maybe the value to
us is not the same as the value to him.
Ashworth: I think we would want to verify what it is that he in fact
purchased this for but I think that becomes relatively easy because this is
a back tax situation so the federal government has already established what
they consider to be the value for their releasing these parcels. We have
asked...to get the project to where it's at. I think we can make a counter
proposal but I would hope that we're fair in the process too.
Robbins: What I'm thinking is that we've got a lot of land now. To
acquire more land just for the sake of owning land.
Ashworth: We are getting to be a major land owner.
Robbins: Is maybe not paramount right now to just require the land for the
land sake.
Bohn: You still want to be able to control that land though as to what goes
on it. Owning it we can control it.
Workman: Which we'll end up owning in combat down the way. I agree with
you Charlie that if it's a situation or I agree with both of you. I mean
be fair but if it's a buyer's market, let's not give away the farm.
Horn: Anything else?
CONSIDER APPROVML OF M PRZVMTE REDEVEL(N=HENT ~4~E~T WITH TED KORZENONSKI
RND CONSIDER ~PPROVML OF M PRZVMTE REDEVELOPMENT MGREEHENT WITH THE
CHMNHMSSEN INN, LRRRY ZPd~OR,
Horn: The next two items are similar. Unless I've missed something, I
believe they're both consistent with what our previous policies have been
on special assessment reductions so unless someone has some questions on
these, they look like fairly straight forward items.
Chmiel: Yeah, you're right.
Robb[ns moved, Workman seconded to approve the Private Redevelopment
Agreement with the Prairie House Restaurant and their request for $9,401.90
in special assessment assistance. Mlso to approve the Private
Redevelopment Agreement with the Chanhassen Inn and their request for
$11,662.13 in special assessment assistance. MI1 voted in favor and the
motion carried unanimously.
Housing and Redevelopment Authority
September 18, 1990 - Page 11
DISCUSSION AND REVIEW OF THE SENIOR NEEDS ASSESSMENT STUDY,
Horn: One question I'd like to ask before we start. It seems to me that
about 8 or 10 years ago there was one of these done.
Gerhardt: We're fairly limited in what we can use our Block Grant monies
for so this one needed to be updated and monies for this study were paid
through the Hennepin County Block Grant.
Horn: The CBDG money? Did we compare any of the results?
Krauss: We really didn't. In fact I wasn't aware that there was an
earlier one but Clark, some of the stuff we found in here was quite
dramatic in terms of, well the City has doubled in size since then and of
course is a much different place and we found that we had an unusually or
what we found to be an unusually large number of seniors in the community.
We have contacted about 800 or 900 households, 55 and older and clearly
there's a big range between 55, 65, 75 in terms of needs. But there was
some projection work done that indicated that within 2 years I think we can
expect to have 1,200 senior family households. It presented a fact that
there was a significant and growing need for specialized services and
that's what that task force was assembled to get a handle on. The Mayor
appointed the task force members and I guess they were basically drawn from
area churches and ministers and what not were asked to provide
representatives. We had a lot of people from social service agencies, from
transportation agencies, whatever who came and gave information on what was
available. What was not available. There was survey work distributed to
all the senior households in the city. We had an excellent return rate.
We had about 30~ or 40~ return rate which is really super. And then there
were study groups where people indicated an interest to talk verbally to
the task force came in for meetings and talked about specific issues.
Transportation was seen as a strong need. Ultimately a place for a senior
citizen center was considered a strong need. We of course have none in the
city right now. Ne co-sponsored South Shore Senior group and that is
located outside the community. Up until this week, a lot ofthe seniors in
town couldn't get there because the bus service didn't go there. You may
have heard that the Southwest Metro was convinced to add service to the
senior center and we're putting notice in the newspaper to that effect and
we mailed out notices to the seniors. But they would like to have a space
of their own, especially as the population grows. If a community center
happens, ideally this would be a community center. If the community center
doesn't happen, it should be someplace else but they do want to look at
that. One of the recommendations that are going to be made to the Council
is that a senior commission be appointed to give some long term advice to
the City Council on how and what to program for seniors. One of the need
areas that was discussed was housing. Now this was not a housing study. I
mean it was only a $7,500.00 study and I think it was really excellent for
the amount of cash that we had to devote to it. Clearly housing is
something that warrants it's own study. But there was a significant number
of seniors who reported to us that either they could not afford to stay in
their own homes for whatever reason. They couldn't maintain the property.
It was too large. When they sought to relocate, that there weren't any
opportunities in the city for them to relocate into. We're aware that
St. Hubert's is considering a small senior housing component. I think 28
units which probably won't satisfy the need. It's also very specific
Housing and Redevelopment Authority
September i8, i990 - Page 12
because it's for members of that congregation. Anyway, I guess the reason
Todd put this into the HRA is when the senior task force gave an informal
presentation to the Council, housing was one of their concerns. I don't
recall who it was but some of the City Council people indicated well then
it should be brought up before the Housing and Redevelopment Authority
since housing is your first name, I believe I'm quoting somebody.
Horn: This is starting to come back to me now. This issue came up in
regards to our first comp plan attempt because at that time the Met Council
was pushing low cost housing on us and we said, hey rather than do that we
would rather direct that to senior citizen housing. And some group,
I forget who it was, came back to us and said we don't have a high enough
percentage of people to do that. You've got to have low income housing.
You can't have senior citizen housing. It doesn't warrant that. I think
John...was on the Council at the time saying that he would have liked to
have had a place for his mother to live in town. There was no place for
them so it isn't just the seniors that are here, it might be seniors who
have children who are living here that they would like to move next to.
Krauss: Ne have one woman on our task force who fit that exactly. Selda
Hineline who was a Chicago resident who's son and family live here and when
she became more needy of having close proximity to relatives, they moved
her into town. Now she's living in one of the apartments over behind
Heritage Square and those seem to be the most affordable ones in town. Now
they're not fully handicapped accessible but there seems to be a lot of
seniors living in there. You know I clearly some more study or specific
study of this is warranted. It may be that a dedicated project is needed
maybe in conjunction with a senior center. You know they function well
hand in hand. It may be that in the short term something considerably less
grandiose or extravagant come into play. Apparently we're trying to find
out about this but some communities had programs where they've gone into
existing units like the ones we have here and taken an ownership position
in those and managed them specifically and then you're Just retrofitting an
existing building that already has seniors in it. We're not here to make
recommendations specifically as to what needs to be built. How many units
and what type. That clearly requires further study. I guess the only
point we wanted to bring across is this study's been done. There's a lot
of interest being generated in it and we do have a very significant and
growing component of seniors who will be requiring these sorts of services
in the future.
Horn: One of the frustrating things I think in being involved with this is
that one time you suggest something and you look for an answer and the
people bring back all the data that says no, you can't do that. $o you sit
5 years later and then the data comes in and says why haven't you been
doing something about this. One of the questions of course is will this
become part of an update to the Comp Plan? This section it would seem like
should be upgraded in that.
Krauss: I think it's a good point Clark. We hadn't thought of it
originally but a senior component can easily be added to the comp plan and
this study that's been done rolled into it in any future studies that we
get rolled into it too. Going back to your historical information in terms
of this being considered before, when we look now the market, the Twin
Cities market is flooded with expensive generally senior citizen housing.
Housing and Redevelopment Author£ty
September iS, 1990 - Page 13
A lot of that was a result of a particular window for tax laws for
developers to jump through. To develop expensive market rate senior
housing and there was also some subsidized senior housing that went in. I
believe the project in Eden Prairie on TH 5 is subsidized and I'm not sure
that, I think they might be full. The senior project at Glen Lake is full
but those are the lower cost ones and those are the ones that we'd be
looking at. Now you're probably not going to find for profit developers
out there looking to put units in Chanhassen at this point in time. And
you're almost certain not to find a government subsidy program that's going
to build housing in our community. So to the extent there's a need that
needs to be satisfied, you're probably looking at a more creative approach.
Exactly what that will be, I don't know but it's not going to be the
traditional type of development.
Horn: One other thought occurred to me too in reviewing this. I guess I
was really astounded to find out how little information is diseminated on
public services that these people can take part in. The thought occurred
to me that the city spends money every year to support the Excelsior Senior
Center. What are they doing in terms of getting this kind of information
out to the seniors?
Krauss: Well it's one of those problems that a lot of the cracks and
things fall through. The South Shore Senior Center, we did take a tour of
their facility. They had us up for lunch. They do have a lot of
Chanhassen residents attending the facility. They've just relocated to
3ay's church. They lost their facility because it was in the school
district building. We don't contribute a hack of a lot of money to that. I
mean it's something on the order of $8,000.00 or $9,000.00. a year. They
provide congregate dining. They provide athletic type things. They do
have a bus. They do organized trips. They try to diseminate information.
As with so many things, we find that across the line in Hennepin County the
social service agencies are extremely well organized. They have information
networks. They take care of a lot of these problems and get information
out. Carver County has never been that active and where they have had
senior programs, you've always got that rural/suburban split and they stick
stuff out in Young America or someplace else that's not readily accessible
to our residents. Senior services are also split amongst a zillion
different agencies and private groups and we really found that we'd rather
not get in the business, in terms of the City, in terms of having to staff
up to be the information resource. But right now it doesn't appear as
there's a whole lot of options because nobody else is taking the ball and
running with it. Ideally at some point to be maybe Chanhassen and Chaska
or with Carver County, they would be able to arrange that but right now it
was clear that there was a need for information source. A single number
they could call. People call City Hall all the time and we try to find out
but then we have to call, because we don't have the information. We have
to run it down so we're plugging gaps right now.
Horn: You know, one of the things I noticed in here too is that they
spent, apparently a lot of people spend a lot of time in volunteer work.
Would they be willing to man a hotline or something if we gave them an
office and a telephone?
Chmiel: We talked about that.
Housing and Redevelopment Authority
September 18, i990 - Page i4
Krauss: Yeah, I'm sure that they would. It would take some staff support
I think from the city in terms of getting the information assembled and at
that point you have the volunteers coming in and answering phones and being
hotline type people. I'm certain that that could happen.
Horn: I was getting nervous that the study would recommend adding to
staff.
Chmtel: I thought part of that presentation done by each of the seniors on
respective areas that they had responsible for did Just a great Job. They
really did.
Horn: It'd probably be a good core group to speak at dinners and things to
get this information out.
chmiel: And they'd be willing to do that too.
Horn: It's really disturbing to see what a low percentage of respondents
knew anything about these services.
Krauss: Even we found, with Southwest Metro and Southwest Metro has tried
to get the word out. Their dial-a-ride services and what not, you see
advertisements around town for that, but we found a surprisingly small
percentage of the seniors knew about it and unfortunately some of those
that tried to use it couldn't because it didn't go where they needed to go
or when they needed to go and we're going to work with Southwest Metro to
fix that.
Horn: There's somebody from Council on Southwest Metro isn't there?
Workman: Ursula and 3ay.
Horn: Ursula and Jay?
Krauss: In terms of service to South Shore.
Gerhardt: Paul, what would be the, did the seniors make a decision on this
additional study? Did they take any action on looking at a comprehensive
need analysis?
Krauss: No. What they're asking the Council to do, I think we'll be
asking the Council to do on October 4th is to accept the study basically as
a vehicle to have further work done as to ideally get a senior commission
on board that's in a position to develop this information. Talk to the
Council and kind of keep the ball rolling. This study was designed,
specifically intended not to be specific. It wasn't designed to say we
need a senior center. It wasn't designed to say we need a transportation.
It wasn't designed to find the exact need for housing. It was a general
type of study to say how many seniors do we have. What are their general
issues. What are their concerns. I think it achieved that but the next
step has to be taken and then housing is something that we need to be
pursued and I've got to believe housing needs to be pursued with a specific
study. Now to the extent we're able to use Block Grant funding for this
study I would assume that we could probably do a housing needs analysis
using the same funding source. We always have a little bit of difficulty
Housing and RedeveIopment Authority
September 15, 1990 - Page 15
spending that money anyway because the categories you can use it on are so
restricted.
Horn: One of the things that they mentioned too is we really need a place
in the interim before we have what they call a civic center. I don't know
where they got that term and not having to go to Excelsior. What is the
viability of that? Do we have anything at all?
Krauss: Well we've tried kicking it around at a staff level and there's
been some suggestions for properties like Pauly's but I think, I checked on
that and they're in there for 3 years. In fact, they're opening up a new
facility.
Horn: What about the Pony Express? Yeah, we've got a building. There's
probably a kitchen in there.
Gerhardt: He still has the right to operate and live out of there for the
next 3 years as long as it's not a bar operation.
Horn: Is he using the bar?
Gerhardt: I think he's got a stage down there where he does his recording
so he's, I'm sure using the space.
Chmiel: That's something we can check on.
Krauss: We really don't have a wealth of available space in the community.
You know you think at some point in the future, depending on how the city
expands and how staff needs, I mean I don't want to belabor the point but
we've got, you know we had this building expansion for City Hall and we
filled up the space and now we've got people working out of closets again.
8ut we do have the space back here and at some point, you know if the
library moves into a new facility, that might a space for them to look at.
Chmiel: The only thing is it would be temporary because I see that need
for the City at some time as the city progresses and grow.
Gerhardt: I'd ask Sharmin to look at the room over at the Bowling Alley.
They had a kitchen facility in the back there and tables and chairs. Is
that a possibility? I don't know if she ever followed through with that or
not.
Chmiel: They have a heavy use there for babysitting. That's what they
utilize that for.
8ohn: They just use that one corner for babysitting but the main room is
empty where the kitchen is.
Chmiel: Oh, ls it?
Workman: Yeah, it's kind of windowless.
Horn: They might be able to do a trade-off if they volunteer to run the
nursery, they might get some free meeting space.
Housing and Redevelopment Authority
September 18, 1990 - Page 16
Krauss: See the space that they're looking for, South Shore is kind of
making do right now. South Shore really enjoyed where they were up in the
school because they had the gym where they had athletics and exercise and
health care is one of the primary functions of these places. Congregate
dining is another. But they needed sort of 2 rooms plus some exercise
space ideally. I don't know what they have in 3ay's church but [ think
they have a pretty good dining facility there and ! don't know what other
facilities they have.
Horn: What do you expect the HRA to do with this?
Krauss: I guess at this point we wanted you to have a copy of the report.
Look through it. Understand what the concern was and possibly discuss
amongst yourselves what sort of, idea generation. What sorts of things
would you feel comfortable becoming involved with?
Horn: Well like the apartments go in over here, we encourage people to set
up, in fact we might even have some financing options if they designate
those as such. Would those be open to developers? Charlte Sames' is going
to have some more apartment type things going. Can they get incentives if
they designate senior facilities?
Krauss: Well I don't know. It's really restrictive these days. Under the
old financing for used housing revenue bonds, 15~ or 20~ of the units had
to be available for moderate income. The follow up on that kind of stuff
has always been kind of shakey but it's not dedicated senior housing.
Gerhardt: We could look at a variety. I mean to place a senior center in
Chanhassen, it would have to be somewhere in the downtown area.
(The tape ran out at this point in the meeting. No action was taken on the
Senior Needs Assessment Study.)
APPROVAL OF AUGUST AND SEPTEMBER BILLS.
Robbins moved, Workman seconded to approve the Housing and Redevelopment
Authority Bills for August and September, 1990 as presented. All voted in
favor and the motion carried.
Bohn moved, Robb[ns seconded to adjourn the aeeting. All voted in favor
and the motion carried. The meeting Nas adjourned at 8=30 p.m..
Submitted by Don Ashworth
Executive Director
Prepared by Nann Opheim