1988 02 18HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
FEBRUARY 18, 1988
CALL TO ORDER: Chairman Whitehill called the meeting to order at
7:38 p.m. Members present: Commissioners Bohn, Swenson, Horn
and Robbins. Also present were Don Ashworth, City Manager and
Todd Gerhardt, Administrative Assistant.
APPROVAL OF MINUTES: Motion by Horn, seconded by Bohn to approve
the January 21, 1988, minutes as presented. All voted in favor
and the motion carried.
DOWNTOWN UPDATE (Presentation by BRW): Ashworth introduced Gary
Ehret and Jim Lasher from BRW. Ashworth explained that staff
asked BRW to attend tonight's meeting to update the HRA on
several issues such as:
Phase I Construction and Status of Phase II and III
Highway 101 Issues:
- Intersection With West 78th Street
- Stop Signs at Frontier Trail
- No Parking
- Pedestrian Crossing
Heritage Park Perspectives
Mr. Ehret gave an overview of each of these items and their status.
Mr. Lasher explained the status of Bernie Hanson and his site plan
work for West 79th Street.
Mr. Lasher and Mr. Fred Hoisington presented several concept ideas
for the different types of businesses that could be located on the
HRA property at the end of West 79th Street. Some of those
included fast food restaurants, super stores, and convenience
retail. Hoisington further explained that the HRA has two alter-
natives to see some of these businesses located in Chanhassen and
they are, 1) wait for individuals to come to the city, or 2) go out
and find the types of businesses the HRA would like to see located
on those sites.
Mr. Lasher explained the concept signage for the downtown area. His
proposal was to establish "district identification signs". The
sign would be placed in several different locations throughout the
downtown. Commissioner Horn recommended staff to get the Chamber
of Commerce's feelings on this concept for signage.
The last item to be discussed on the downtown Was the Heritage Park
Perspectives and concept facia designs for the Pony, Pauly, and
Pryzmus building. Staff recommended this item be tabled until the
March meeting.
Motion by Swenson, seconded by Horn to table discussion on the
Heritage Park Perspectives and concept facia plans for the Pony,
Pauly, and Pryzmus building. All voted in favor and the motion
carried.
HRA Minutes
February 18, 1988
Page 2
SITE DEMOLITION OF HAVLIK BUILDING AND LABALO PROPERTY: Ashworth
explained that staff prepared specifications for both the Havlik
and Labalo buildings for demolition. The formal bidding proce-
dures were not followed in hopes that each project would come in
under the $15,000 mandatory limitation. The low bid was from
Schafer Contracting for $32,300. Staff is in the process of pre-
paring formal bids for the Labalo building. Ashworth further
explained that City crews were interested in the demolition of
the Havlik property. Staff is recommending that the HRA award
the bid to the City of Chanhassen in the amount of $8,000.00.
Motion by Horn, seconded by Swenson, to award the demolition of
the Havlik building to the City of Chanhassen for $8,000,
(Resolution No. 88-2). All voted in favor and the motion carried.
CHADDA REQUEST FOR ADDITIONAL FINANCIAL ASSISTANCE FOR DOWNTOWN
HOUSING PROJECT: Ashworth explained that at our January meeting
this item was tabled in order that CHADDA come back with addi-
tional information outlining their proposal. Ashworth further
explained that each HRA member should have received a copy of
financial team's analysis of the CHADDA proposal.
John Dean from the LeFevere firm was present to discuss the ana-
lysis. Mr. Dean explained each of CHADDA's proposals over the
past two years. He stated that the team analysis of this project
is that 30% of the project cost will be covered by subsidy and
97% of the estimated tax increment for 12 years will be utilized
by this project. The total HRA assistance would be $982,000. He
noted that the HRA assistance is nearly twice the level that
equity partners will contribute and also receive back approximately
$50,000 per year.
Ashworth asked the HRA not to make a decision on this item
tonight but have staff work with CHADDA and return in two weeks
with a plan that would show six years worth of tax increment
assistance.
Motion by Whitehill, seconded by Horn, that staff work with
CHADDA and enter into a contract that the HRA would allocate a
fixed amount of $618,000 and that CHADDA provide a breakdown of
both land and building costs. Also, a special meeting should be
scheduled for March 3, 1988, at 8:00 p.m. All voted in favor and
the motion carried.
APPROVAL OF BILLS: Motion by Swenson, seconded by Bohn to
approve the bills as presented. All voted in favor and the
motion carried.
ADJOURNMENT: Motion by Bohn, seconded by Robbins, to adjourn the
meeting at 11:16 p.m. All voted in favor and the motion carried.