1988 07 21HOUSING AND REDEVELOPMENT AUTHORITY
MINUTES
JULY 21, 1988
CALL TO ORDER: Commissioner Swenson called the meeting to order
at 7:38 p.m. Members present: Commissioners Robbins, Bohn, and
Swenson. Chairman Whitehill and Commissioner Horn were absent.
Also present were Don Ashworth, Executive Director and Todd
Gerhardt, Administrative Assistant.
APPROVAL OF MINUTES: Motion by Swenson, seconded by Bohn to
approve the minutes with changes as mentioned. All voted in
favor and the motion carried.
APPROVAL OF DEVELOPMENT CONTRACT - SHOPPING CENTER PROPOSAL:
Ashworth introduced John Dean from LeFevere Law Firm to discuss
the development contract on the proposed shopping center develop-
ment. Mr. Dean briefly outlined the contract, specifically the
sections covering the interest and special assessment assistance.
Motion by Swenson, seconded by Bohn, to table action on the
approval of the Development Contract for the proposed shopping
center until the entire HRA is present. All voted in favor and
the motion carried.
BERNIE HANSON CONDEMNATION PROCEEDINGS/DEVELOPMENT PROPOSAL:
Staff introduced Bernie Hanson, owner of Chanhassen Lawn and
Sports. He presented his proposal for assistance for the deve-
lopment of a 12,500 square foot Lawn and Sport Dealership on West
79th Street. Staff also mentioned that the financial team has
met with Mr. Hanson several times to discuss his proposal.
Mr. Hanson's request from the HRA was presented as follows:
1. Sale of existing Chanhassen Lawn and Sport
building and land $185,000
- All proceeds to be applied to new facility
2. Loan proceeds from Chanhassen Bank 99,000
3. Land from City of Chanhassen
(98,333 square feet x 1.80) 177,000
4. Additional assistance 100,000
Commissioner Swenson felt that the HRA should not take any action
on this item until the entire HRA Board was present.
Motion by Swenson, seconded by Bohn, to table action on the
request for financial assistance for the development of a 12,500
square foot Lawn and Sport Dealership for Mr. Hanson. All voted
in favor and the motion carried.
BRA MINUTES
July 21, 1988
Page 2
Staff requested the BRA also make a motion in regards to proceed
with condemnation on Mr. Banson's present facility on West 78th
Street.
Motion by Swenson, seconded by Robbins, directed that the City
Attorney under his findings, state if condemnation Drocedures
should continue or not. All voted in favor and the motion
carried.
TH 101 REALIGNMENT - ENGINEERING SERVICES:
Mr. Ashworth explained that included in the BRA's packet was a
request from the City Council to amend the BRA's budget to
include engineering services for the development alternatives for
the realignment of the TB 101 and Market Boulevard. Staff recom-
mended the BRA approve the budget amendment for a staged
agreement for Professional Engineering Service to assure that the
realigned Highway 101 and Market Boulevard become a reality.
Motion by Robbins, seconded by Bohn, to approve a resolution to
amend the 1988 and 1989 budget to include the engineering ser-
vices for realigned TB 101 and Market Boulevard. All voted in
favor and the motion carried.
SIDEWALK IN FRONT OF FIRE STATION/ALONG CBAN VIEW:
Commissioner Bohn explained to the HRA that the sidewalk along
Laredo Drive should be extended to just north of the school and
that a sidewalk should also be placed along Chan View between the
Post Office and City Ball.
Staff explained to the HRA the costs associated with the place-
ment of the sidewalk in these areas.
Motion by Bohn, seconded by Robbins, to approve the construction
of a sidewalk along Laredo Drive and Chan View. All voted in
favor and the motion carried.
APPROVAL OF THE ACQUISITION OF KOLTYK PROPERTY:
Ashworth explained to the BRA that the attorneys have come to an
agreement with the Koltyk's on a purchase price of $57,500.
Staff recommends approval of this amount and the HRA should
direct the City Attorney to draw up the necessary documents for
the settlement.
Motion by Bohn, seconded by Robbins, to approve the award of
$57,500 for the Koltyk property and direct the City Attorney to
draft the documentation needed to settle the acquisition. All
voted in favor and the motion carried.
HRA MINUTES
July 21, 1988
Page 3
AUTHORIZING ACQUISITION AND CONDEMNATION OF THE FRONTIER BELLE
BEAUTY SALON/ROGER PAULY (owner):
Mr. Ashworth explained that due to a large difference in
appraisals for the Pauly property, staff feels the best alter-
native would be to have the HRA authorize acquisition and condem-
nation procedures to begin.
Motion by Bohn, seconded by Swenson, to authorize condemnation
proceedings begin on the Frontier Belle Beauty Salon which is
owned by Roger Pauly. All voted in favor and the motion carried.
ACCEPT BIDS FOR THE REMOVAL AND PROPER DISPOSAL OF CHEMICALS LEFT
IN THE LABALO BUILDING:
Mr. Gerhardt explained that staff has been working on receiving
bids for this work for the past several months. The results of
the bids received are as follows:
CECOS
OHM
Bay West
Chemical Waste Management
No Bid
No Bid
$14,500 to 19,000
$13,014 to 18,014
Staff recommended the HRA to award the bid for removal and proper
disposal of the chemicals to Bay West Environmental Services for
$14,500 to $19,000.
Motion by Swenson, seconded by Robbins, to award the bid for
the proper disposal and removal of chemicals left in the Labalo
building to Bay West Environmental Services for the amount not to
exceed $19,000. All voted in favor and the motion carried.
APPROVE PURCHASE AGREEMENT - AUTOMOTIVE UNLIMITED UNION 76:
Roger Knutson, City Attorney, explained to the HRA his dealing
with Mr. Anderson and his concerns with the purchase agreement.
He further explained that due to possible soil conditions on Mr.
Anderson's property, he would not recommend the HRA buy the
property until it is known how serious a problem exists on the
site.
Commissioner Robbins asked if the purchase agrement could be
drafted in a way that the HRA can protect themselves until the
extent of the problem is known.
Mr. Knutson said that the HRA could have a contingency in the
agreement that upon the results of the Minnesota Pollution
Control Agency approving an action plan for the pollution program
and declare the agreement void if such is not met by the date
indicated in the agreement.
HRA Minutes
August 17, 1988
Page 4
Motion by Robbins, seconded by Bohn to modify the purchase
agreement with Loren Anderson and include a contingency that an
action plan be established by the Minnesota Pollution Control
Agency that would describe the seriousness of the problems that
exist on the site and that if such plan is not completed before
the closing date, the purchase agreement is void. All voted in
favor and the motion carried.
HOTEL PROJECT - PRELIMINARY REPORT:
Ashworth introduced Mr. Johnson from Bloomberg Companies and he
gave an overview of the proposed project. Mr. Johnson explained
that the proposed hotel would have 100 units, all suites, with a
swimming pool, breakfast room and exercise room.
Ashworth explained that the amount of assistance requested by
Bloomberg Companies would be consistent with assistance that the
HRA has provided for the development of Retail West and future
Medical Arts Building, where the city bought the land and demo-
lished the old Labalo building, preparing the site for develop-
ment. The amount of assistance which they are requesting would
amount to three years worth of taxes.
Staff recommends approval of the financial assistance for the
acquisition and demolition for the proposed development of a 100
unit hotel.
Motion by Bohn, seconded by Robbins to approve the financial
assistance for the acquisition and demolition for the development
of a 100 unit motel. All voted in favor and the motion carried.
ESTABLISH SPECIAL HRA MEETING:
Motion by Robbins, seconded by Bohn to establish a special HRA
meeting for August 4, 1988, at 7:30 p.m. at Chanhassen City Hall
Council Chambers. All voted in favor and the motion carried.
APPROVAL OF BILLS:
Motion by Robbins, seconded by Bohn, to approve the bills as pre-
sented. All voted in favor and the motion carried.
ADJOURNMENT:
Motion by Bohn, seconded by Robbins to adjourn the meeting at
9:38 p.m. All voted in favor and the motion carried.