1988 08 04HOUSING AND REDEVELOPMENT AUTHORITY
MINUTES
AUGUST 4, 1988
CALL TO ORDER: Chairman Whitehill called the meeting to order at
7:32 p.m. Members present: Commissioners Horn, Bohn, Swenson
and Robbins. Also present were Don Ashworth, Executive Director
and Todd Gerhardt, Assistant Executive Director.
BERNIE HANSON DEVELOPMENT PROPOSAL:
Ashworth explained the different types of financial assistance
that the HRA can provide through tax increment financing such as
land write-down for the value of the land and payment for the
fair market value for the property owner's existing building,
plus relocation. Ashworth explained that the HRA should be aware
of not exceeding the legal authority of the use of tax incre-
ments. Ashworth then introduced Bernie Hanson and asked Mr.
Hanson to summarize his request for financial assistance. Mr.
Hanson explained that he was looking for approximately $100,000
of additional assistance for development of a two phase project.
The first phase would be the construction of a 12,500 square foot
lawn and sport dealership. The second phase would consist of a
6,500 square foot addition that would occur within five years of
the first phase. The assistance needed would help reduce the
costs associated with the site work (parking lot, landscaping,
etc.).
Chairman Whitehill's feelings towards allowing Mr. Hanson to
develop on West 79th Street was that the land would be under uti-
lized by allowing the construction of a 12,500 square foot
building on a 2 acre site.
A motion was made by Chairman Whitehill to offer Mr. Hanson a
reasonable value for his present property on West 78th Street of
$210,000, seconded by Bohn. The motion was then open for
discussion. Through the discussion it was decided that the
motion be withdrawn and that the HRA go into an executive
discussion with staff and legal counsel.
Mr. Haefele then made a proposal to the HRA that Mr. Hanson's
present site on West 78th Street be purchased by the HRA for
$210,000 and that the HRA also acquire a portion of the new Hanus
Truck Facility also be included. The HRA did not take action on
Mr. Haefele's offer.
A motion was made by Chairman Whitehill that staff continue to
work with Mr. Hanson in relocating to the Hanus Truck Facility
site and that the HRA not allow Mr. Hanson to build on the West
79th Street site. The motion was seconded by Swenson. Ail voted
in favor and the motion carried.
HRA MINUTES
A~GUST 4, 1988
PAGE 2
APPROVAL OF DEVELOPMENT - SHOPPING CENTER PROPOSAL:
Ashworth explained the concern in which he had with the
Development Contract, specifically with the special assessments.
Ashworth then introduced John Dean to give overview of the
changes which have occurred.
Commissioner Bohn asked if the HRA would be responsible for
paying the interest on the project. Mr. Dean replied by saying
yes, it is the responsibility of the HRA and the interest rate
would be 12%.
Motion by Chairman Whitehill, seconded by Robbins to approve the
contract with the changes as addressed by the HRA. All voted in
favor with the exception of Commissioners Swenson and Bohn who
abstained.
PMT SPECIAL ASSESSMENT REDUCTION AGREEMENT:
Ashworth explained that A1 Iverson (owner of PMT) is requesting
additional financial assistance to pay his special assessment
that exists on the property he owns to the west of his present
building. Staff recommends that the special assessment agreement
be processed for the entire $43,000 which is the current balance
remaining on the PMT site.
Motion by Chairman Whitehill, seconded by Bohn to approve the
additional financial assistance to PMT for the current balance of
$43,000 left on his special assessments. All voted in favor and
the motion carried.
ADJOURNMENT:
Motion by Swenson, seconded by Robbins to adjourn the meeting at
9:38 p.m.