1989 01 19HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
JANUARY 19, 1989
CALL TO ORDER: Vice-Chairman ~orn'called the meeting to order at
7:34 p.m. Members present: Commissioners Bohn, Swenson and
Robbins. Chairman Whitehill arrived late. Also present were Don
Ashworth, Executive Director and Todd Gerhardt, Assistant.
Executive Director.
APPROVAL OF MINUTES: Motion by Swenson, seconded by Robbins to
approve the December 1, 1988, minutes as presented. All voted
in favor and the motion carried.
Motion by Swenson, seconded by Horn, to change the agenda by
moving Item #3 (Approval of Development Proposal for We~t 79th
Street) to Item ~Sb. All voted in favor and the motion carried.
CONSIDERATION OF THE ACQUISITION OF A SNOWBLOWER FOR THE'DOWNTOWN
Gerhardt explained that the HRA, at their last meeting, directed
staff to look at two options of leasing and purchasing a
snowblower. In staff's review of lease/purchase option, staff
received bids from three companies which handle front-end
snowblowers. The results of those are as follows:
* Low Bidder
* 1. Boyum Equipment, Inc. - $33,144.00
2. MacQueen Equipment, Inc. - $38,152.00.
3. Ruffridge-Johnson Equipment - $42,907.00
The option regarding leasing the equipment was from a range of
$2,500 to $3,000 per month. Staff's recommendation to the HRA
was to accept the bid for the acquisition of a snowblower from
Boyum Equipment, Inc. for $33,144.00'. Staff also mentioned to
the HRA that this was a budgeted item under 1988 budget and that
the 1989 budget be modified to reflect this change.
Motion by Robbins, seconded by Bohn, to accept the bid from Boyum
Equipment, Inc. for $33,144.00 for the acquisition for a front-
end snowblower. All voted in favor and the motion carried.
(Resolution 489-3)
REVIEW THE OPTION AND PURCHASE AGREEMENT REGARDING MASON PROPERTY
Ashworth explained that the proposed site for New Horizon Day
care has withdrawn their interest to the property lying easterly.
of Kenny's Market (Mason property). Ashworth further explained
that the parcel is the key to the north side parking lot and how
the traffic would flow through this area. Staff recommended-
approval of the purchase agreement and option agreement between
the City and CHADDA.
Motion by Swenson, seconded by Robbins, to approve the Purchase
Option Agreement based on the outcome of PCA's plan to clean up
the site and that the HRA also have the option to extend the
option for an additional 6 months at a cost of $4,000. All voted
in favor and the motion carried.
HRA Minutes
January 19, 1989
Page 2
JOINT POWERS AGREEMENTr SERVICES/ACCOUNT AGREEMENT
Ashworth explained that the HRA's legal counsel requested staff
to update the Joint Powers Agreement between the City and HRA due
to the amount of activity within the downtown, industrial parK,
etc. Staff is recommending approval of the agreement as pre-
sented. Motion by Swenson, seconded by Bohn to approve the Joint
Powers Agreement as ~resented. All voted in favor and the motion
carrisd.
APPROVAL OF OPTION/PURCHASE AGREEMENT FOR LOREN ANDERSON
Ashworth explained that staff and Chairman Whitehill had executed
the option agreement with Mr. Anderson on January 3, 1989. Staff
had included in the HRA packet the executed agreement for the
HRA's review and comments. The HRA had no further comments on
this issue. Staff then recommended to the HRA a retroactive
approval of the option/purchase agreement between Loren and
Barbara Anderson for the acquisition of Automotive Unlimited.
Motion by Swenson, seconded by Robbins to retroactively approve
the option/purchase agreement with Loren and Barbara Anderson.
All voted in favor and the motion carried.
CONSIDERATION OF APPROVAL OF DEVELOPMENT CONTRACT FOR MEDICAL
ARTS BUILDING
Ashworth outlined the changes which occurred in the early version
of the Development Contract that was'presented to the HRA. Items
which changed aealt with easements, parking lot configuration,
construction plans, phasing and parking lot improvements. There
were no further comments by the HRA on this item. Staff recom-
· 'ended approval of the development contract as presented.
Motion by Robbins, seconded Dy Swenson to approve the development
contract as presented. All voted in favor and the motion
carried.
At 8:15 p.m. the HRA took a recess to wait for Chairman Whitehill
to arrive. Mr. Whitehill arrived at 8:40 p.m. and the HRA con-
tinued their meeting.
APPROVAL OF DEVELOPMENT PROPOSALS FOR WEST 79TH STREET
Ashworth explained that he received a letter from Tom Mork on
Wednesday ~rior to the HRA's meeting on January 19, 1989, speci-
fying a significant dollar amount that Crossroads National would
be willing to DaY for the land down on West 79th Street.
Ashworth further explained in light of this development, staff is
recommending t~e parcel be divided into two lots; one for the
bank and the other for Mr. Flaherty's development. Ashworth
then asked each of the developers to respond to this change.
o.
HRA Minutes
January 19, 1989
Page 3
Tom Mor~ explained his reasons why Crossroads National was
willing to make such a significant offer on the site and how
important it was for the bank to own the property.
Tony Feffer then spoke regarding his development, highlighting
]~n~ range impacts on the site regarding the taxes that would be
generated. Tony also said he could work with Crossroads National
in locating their Dank within his complex.
Julie Skarda representing Lariat Companies was very surprised by
this development and requested additional time to-talk'with
Edward Flaherty, owner of Lariat Companies, regarding this
change. But also said if a decision was to be made now regarding
the splitting of the project, Lariat Companies w0uld not be
interested in developing the easterly portion.
Motion by Swenson, seconded by Whitehill to table this item until
January 21, 1989, at 9:00 a.m. at which time the HRA will'discuss
this item in further detail. All voted in favor and the motion
-arried.
UPDATE REGARDING NEGOTIATIONS WITH PAULY'Sr KENT LUDFORDr
HARDWARE HANK AND BERNIE HANSON~ CHANHASSEN LAWN AND SPORTS
Ashworth explained that Mr. Pauly shared some interest in
settling out of court and staff feels this could occur sometime
this spring.
Staff was directed at the last HRA m~eting to negotiate with Kent
Ludford regarding his relocation to the new Retail Center west of
Market Boulevard. Ashworth introduced Mr. Ludford and he
expressed that he was interested in moving into that facility.
However, there still needs to be some determination on final rent
amount and relocation costs. No further comments were made
regarding Mr. Ludford's move, with the exception of the HRA
expressing their interest in keeping Mr. Ludford's operation in
Chanhassen and that he continue to meet with staff.
Ashworth explained to the HRA that Mr. Hanson would li~e to' ma~e
a presentation to the HRA regarding an out of court settlement.
Mr. Hanson then handed out an appraisal'and reolcation expense
estimate for the HRA to review.
The HRA then asked that the Council Chambers be closed so that
the HRA could privately discuss Mr. Hanson's proposal. The
meeting was reopened giving direction to staff in working with
Mr. Hanson in negotiating a purchase price for his building on
West 78th Street. No further action was taken.
HRA Minutes
January 19, 1989
Page 4
APPROVAL OF BILLS
Motion by Swenson, seconded by Bohn, to approve the bills as pre-
sented. All voted in favor and the motion carried.
ADJOURNMENT
Whitehill moved, seconded by Robbins, to adjourn the meeting at
11:20 p.m. All voted in favor and the motion carried.