Loading...
1988 06 16· HOUSING AND REDEVELOPMENT AUTHORITY MINUTES JUNE 16, 1988 CALL TO ORDER: Vice-Chairman ~orn called the meeting to order at 7:35 p.m. Members present: Commissioners Robbins, ~orn, Bohn, and Swenson. Chairman Whitehill came late. Also present were Don Ashworth, City Manager and Todd Gerhardt, Administrative Assistant. SHOPPING CENTER PROPOSAL: Ashworth introduced John Dean to give an overview of the options for assistance for a 70,000 sq. ft. shopping center as part of Phase I which would include a 16,000 sq. ft. grocery store. Phase II would consist of a 14,000 sq. ft. grocery store expansion and the addition of 8,000 sq. ft. of retail. Phase III would include 12,000 sq. ft. of detached retail. Dean further explained that the financial team has two options available for the ~RA review. The first option would consist of the following: I. Pay as You Go 1. $860,000 (land writedown) for Phase I payable out of tax increment stream from Phase I. 2. This is the only subsidy which would be paid out of Phase I tax increment. · If Phase II and/or Phase III is developed and results in tax increment, that tax increment would be available on a "pay as you go" basis as a subsidy to reduce specials. Several approaches could be considered: a) HRA would use the tax increment from Phase II and/or Phase III to the extent available to (i) pay remaining specials on Phase II and/or Phase III, (ii) and remaining specials on Phase I, (iii) and specials previously paid on Phase I and/or Phase II and/or Phase III. b) Park of a). c) Permit Phases II and III to participate in the special assessment education program. The second option is: II. Bonded Obliqation i · The City would sell bonds (probably G.O. Tax Increment) sufficient to generate net proceeds of approximately $600,000. The net proceeds would be furnished to the developer. The provisions of paragraphs 3 and 4 of Option I would be applicable. · HOUSING AND REDEVELOPMENT AUTHORITY MINUTES JUNE 16, 1988 PAGE 2 · The term in years of the bonds would be the number of years established in the bond documents for payment. Developer would be required to sign an assessment and deficiency agreement (and also may under Option I). 3. Timing: a) The bonds would not be sold at least until developer furnished evidence of financing and construction contracts. b) Proceeds would not be made available until the HTA was reasonably assured that the tax increment stream was there, this could include completion of construction and occupancy of all or most of the center. c) Proceeds may be held by trustee even beyond that point and paid out in annual installments of approxi- mately $220,000, plus interest, beginning in 1989. d) Bonds would be taxable and have an extraordinary call provision. Chairman Whit·hill expressed that the pay as you go option should be the only option considered due to the unknown of the bonding obligation option. Motion by Whitehill, seconded by Horn to approve financial assistance for the construction of a 70,000 sq. ft. shopping center on the "pay as you go" option as presented by the finan- cial team and subject to maximize the interest cost to be used for the amortization. All voted in favor and the motion carried. HERITAGE SQUARE APARTMENT SITE: A· Housinq Plan Approval: Ashworth explained that as part of bonds to be sold for the Housing Project, the City must establish a Housing Plan and Program. Ashworth further explained that attached are each of the documents for the HRA review. Motion by Robbins, seconded by Whit·hill to approve a resolu- tion approving the Housing Revenue Bond Program and Housing Plan for the construction of the Chanhassen Heritage Square Apartment complex. All voted in favor except Swenson who abstained. B. Final Plan Amendment Approval: Ashworth explained that HRA packets included the final site plan for the Housing Project· HOUSING AND REDEVELOPMENT AUTHORITY MINUTES JUNE 16, 1988 PAGE 3 Ashworth also stated that changes had been made by CHADDA and that they are present to discuss those changes. Ashworth then introduced Brad Johnson to give an overview of the changes that were made to the plan. Motion by Swenson, seconded by Horn to approve the modified Heritage Square Apartment Site Plan as presented. All voted in favor and the motion carried. ADJOURNMENT Motion by Whitehill, seconded by Swenson to adjourn the meeting. All voted in favor and the motion carried. Prepared by Todd Gerhardt ~.~.