Loading...
1989 02 16HOUSING AND REDEVELOPMENT AUTHORITY MINUTES FEBRUARY 16, 1989 CALL TO ORDER: Chairman Whitehill called the meeting to order at 7:32 p.m. Members present: Commissioners Bohn, Swenson, Horn and Robbins. Also present were Don Ashworth, Executive Director and Todd Gerhardt, Asst. Executive Director. APPROVAL OF MINUTES: Motion by Horn, seconded by Whitehill to approve the January 19 and 21, 1989, minutes as presented. All voted in favor and the motion carried. VISITOR PRESENTATION: None OLD BUSINESS: REVIEW PROPOSED WEST 79TH STREET DEVELOPMENT: Chairman Whitehill explained the process to be used for each of the developers to discuss their proposal to the HRA. Each of the developers were asked to leave the Chambers and that each would be given the opportunity to speak to the HRA without the other party present. No questions were asked about the process. Andy Merry gave an overview of the negotiations between Lariat Companies and Crossroads National Bank. Through these nego- tiations neither party could come to an agreement as to the rela- tionship that the HRA had endorsed at their January 21, 1989, meeting. Mr. Merry then went through an overview of the following options: 1. Split the site into two parcels, sell the westerly portion to the bank and sell the easterly portion to Lariat. 2. Designate Lariat Companies to develop the entire site. 3. Designate Crossroads (or Woodbridge) as developer of the entire site. 4. Start the process over. · Split the site into two parcels, sell the westerly portion to the bank and take a new request for proposal for the remaining 3 acres. Chairman Whitehill then asked Mr. Flaherty to give his presen- tation and asked Crossroads to wait in the lobby. Mr. Flaherty explained that they would build the entire develop- ment in two phases. The bank in the first phase and the second phase would be retail/office of 6,000 square feet and would also put up a letter of credit for the development. Mr. Flaherty also added that he would buy the bank site for $4.50 per square foot for only 70,000 square feet and $2.50 a square foot for the remaining portion of the property. HRA Minutes February 16, 1989 Page 2 Mr. Flaherty also wanted flexibility so that he may submit an alternative site plan if he could not find a bank within a cer- tain timeframe. Chairman Whitehill asked if the HRA had any questions from Mr. Flaherty. Commissioner Bohn asked if Mr. Flaherty would have any problems with the HRA having architectural review. Mr. Flaherty had no problem in entering into an agreement giving the HRA the right to architectural review. No further comments/questions were asked by the HRA. Chairman Whitehill then asked Crossroads National Bank to make their presentation. Tom Mork, President of Crossroads National Bank, gave an overview of their project consisting of a 10,000 - 14,000 square foot banking facility on a maximum 3 acre site and purchasing the buildable property for $4.50 per square foot. Mork also added that the Crossroads actions these past few months shows that they are very interested in locating in Chanhassen and working with the community. Chairman Whitehill opened up the discussion to the HRA members on the proposed Crossroads development. Commissioner Swenson asked if the new bank facility and organization could support the $2 million proposed development and would they have a problem with the HRA having architectural review of the development. Mr. Mork responded by saying they have financial support of the bank's board members and by the selling of public bonds. He stated that the comptroller in this project felt very comfortable in sup- porting the development of a 10,000 square foot banking facility. Mr. Mork also added that he had no problem with the HRA having architectural review of the site. Commissioner Robbins asked if Crossroads is prepared to start construction in the near future? Mr. Mork responded by saying he felt that preliminary approval of their charter is expected some- time in mid-March and would look to a July or August construction timeframe. Chairman Whitehill asked if they would be leasing any of the 10,000 square feet out to other office users? Mork stated that the bank would use 6,000 square feet and 4,000 square feet would be leased out for approximately 5 years at which time the bank would then probably expand their operation into that space. Commissioner Swenson asked how critical the soil issue was on this property. Ashworth explained that the engineer has esti- mated approximately .25 a square foot of correction costs on the entire 6 acres. Chairman Whitehill made the comment that the HRA is very for- tunate to have two very good developers looking to build on this site and that HRA will have a difficult task in selecting just one developer. ~RA Minutes February 16, 1989 Page 3 Chairman Whitehill made the motion of accepting Lariat Companies proposal as presented tonight. The motion was seconded by Horn. Another motion was made by Whitehill to accept the Crossroads National proposal as presented, and seconded by Robbins. Both motions were opened up for discussion. Whitehill started the discussion by stating his feeling about both developments and expressing his interest towards the Lariat proposal, with hopes that the two parties could come to some agreement of working together. Commissioner Horn commented that whomever is selected for the West 79th Street development, they should be aware that they are entering into a partnership with the HRA in areas of architec- tural review, future development of the land to the east, etc. Horn also commented that the sooner we have a development going ahead, the sooner the railroad will complete their work on the crossing arms. Horn expressed his interest towards Crossroads National Bank and would hope that Lariat would submit application for the remaining two acres if the HRA sends out a RFP. Commissioner Swenson expressed that she had no reservations of dividing the property into two lots and having architectural control over both of the lots. Swenson expressed her interest towards Crossroads National for the reason that the bank would be a financial benefit to the city in accepting $4.50 for the entire bank site. Commissioner Bohn commented that he liked both projects and wished that both parties could have worked out an agreement, but felt that Crossroads National should be the developer of the westerly 3 acres. Commissioner Robbins was divided also between the two develop- ments but expressed his interest towards Crossroads National. Chairman Whitehill called for the vote of Motion #1, selecting Lariat Companies as the exclusive developer of West 79th Street. Whitehill voted in favor and Commissioners Horn, Swenson, Robbins and Bohn were opposed. The motion failed. Chairman Whitehill called for the vote of Motion #2, to sell the most westerly 3 acres to Crossroads National Bank. Commissioners Horn, Swenson, Robbins and Bohn voted in favor. Whitehill was opposed. The motion carried. The motion is subject to the drafting of a purchase and development contract containing the purchase price, size of the property, architectural review, etc. HRA Minutes February 16, 1989 Page 4 CONDEMNATION UPDATE ON HARRY PAULY: Ashworth explained the nego- tiations to date with the Pauly's regarding the settlement price of the lot south of Pauly's restaurant/bar. Ashworth introduced Roger Pauly, attorney for Harry Pauly, to explain the settlement of the current litigation. Roger Pauly explained to the HRA that Harry Pauly is looking for payment for the value of the land at which the liquor business is situated and relocation costs. The total amount of these costs are estimated to be $377,550. Due to the dollar amount of difference between the Pauly's request and the appraisal, the HRA did not take any further action but hoped that the two attorneys would continue to try and work out an out-of-court settlement, if not the HRA would look to the Commissioner for the settlement amount through condemnation proceedings. No further action was taken. HOTEL PROJECT UPDATE: Ashworth explained that Bloomberg Companies requested time on this evening's agenda so that they would be able to update the HRA on this prograss to date with the hotel project. Clayton Johnson introduced his hotel team and reviewed the proposed site plan. The HRA expressed two concerns about the site plan. They were: 1. The impact of traffic generated by the hotel on West 78th Street. 2. The lack of a restaurant attached to the hotel. Staff was directed by the HRA to look closely at traffic implica- tions of this development and the use of right turn lanes, stop signs or lights, etc. No further action was taken. MEDICAL ARTS BUILDING DEVELOPMENT CONTRACT UPDATE: Ashworth explained that this item was placed on the agenda as an infor- mation item and should have been included in the Administrative Section of the packet. No further action was taken. SPECIAL ASSESSMENT REDUCTION AGREEMENT~ CHANHASSEN PARK PLACE PARTNERS: Gerhardt explained that included in the HRA packet was a request from Chanhassen Park Place Partners for special assessment assistance for the development of a 25,000 square foot office/warehouse complex. The outstanding assessment against the site is $48,324.90. The project would qualify for $57,050. Staff recommended approval of Resolution No. 89-2 and authoriza- tion of its execution. Motion by Horn, seconded by Bohn, to apgrove the Special Assessment Agreement for Chanhassen Park Place Partners. voted in favor and the motion carried. Ail HRA Minutes February 16, 1989 Page 5 SPECIAL ASSESSMENT REDUCTION POLICY CHANGE: Ashworth explained to the HRA that placement of this item on the agenda was to reaf- firm the three year maximum for incentive for new development to locate in Chanhassen. This program would be that the total incentive arrived at through calculating three years of taxes can be used for either special assessment reduction and/or land write-down. Chairman Whitehill made the comment that the existing agreement should include this policy change and directed staff to redraft the agreement with the mentioned change. Motion by Whitehill,seconded by Bohn, to modify the special assessment agreement to include that the total incentive arrived at through calculating three years of taxes and be used for either special assessment reduction and/or land reduction and direct staff to redraft the agreement with the above mentioned changes. All voted in favor and the motion carried. CHANBASSEN MALL PROPERTY/OLD FEEDMILL PROPERTY: Ashworth updated the BRA on the sale and transfer of property from the BRA to Bloomberg Companies. This item was to advise the BRA of the progress regarding each of these parcels. No further action was taken. APPROVAL OF BILLS: Motion by Born, seconded by Bohn, to approve the bills as presented. All voted in favor and the motion carried. ADJOURNMENT: Whitehill moved, seconed by Swenson, to adjourn the meeting at 11:00 p.m. All voted in favor and the motion carried.