1985 07 11MINUTES
JOINT CITY COUNCIL AND HRA MEETING
JULY 11, 1985
CALL TO ORDER: Mayor Hamilton called the meeting to order at
7:35 p.m. Present were Commissioners Swenson, Robbins, Bohn,
Councilwoman Watson and Councilman Geving. Absent were Chairman
Whitehill and Commissioner Horn. Also present were City Manager
Ashworth, City Planner Dacy and Fred Hoisington.
APPROVAL OF MINUTES: A motion was made by Robbins and seconded
by Bohn to approve the minutes of the May 30, 1985 meeting. All
voted in favor and the motion carried.
DOWNTOWN REDEVELOPMENT PLAN:
Review Phase I Redevelopment: Ashworth explained that in
September the City Council raised the question of whether the HRA
should continue recognizing the minor activity which was
occurring with the downtown redevelopment plan. In a joint
meeting in October, it was decided to take a "fresh look" at the
downtown redevelopment plan. Three proposals were received for
consultive services with two firms being interviewed. Brauer and
Associates was hired as the new consulting firm to conduct the
re-evaluation of a downtown redevelopment plan. Alternative
plans were prepared following various input sessions with the
HRA/Council, developers and citizens. That process has been
completed. Additionally, a major portion of the Instant Web
building has been sold. The purpose of this meeting is to deter-
mine whether objectives of Phase I have been met; whether the
HRA/Council wish to officially adopt the revised downtown redeve-
lopment plan; to determine objectives which are to be met if
Phase II is to be authorized; and to adopt a Phase II budget
should the HRA/Council wish to commence Phase II objectives.
The following represents presentations/discussions regarding each
of the proposed action items:
1. Exhibit 1 was presented. Exhibit 1 represents the
existing detail budget including expenses/remaining
balances (assumes Phase II is not authorized). Exhibit
1 includes costs known to occur during the remainder
of 1985, i.e. utility/other costs associated with the
remaining portion of the Instant Web Building, per-
sonnel costs, etc.
HRA/City Council members generally discussed expenses
shown by the Manager. No action was required.
2. Exhibit 2 was presented. Exhibit 2 is the financial
model for the tax increment district if the
HRA/Council decide not to pursue Phase II and the HRA
ceases as an organization. Exhibit 2 projects revenues/
expenses during the life of the tax increment
district. Exhibit 2 shows that all costs associated
with the HRA will be totally paid in 1994. As
Exhibit 2 represents ceasing activities of the HRA,
JOINT CITY COUNCIL/HRA MINUTES
JULY 11, 1985
PAGE 2
no staff or consultive services were included other
than those already incurred for 1985. However, an
administrative service fee would be charged to the
HRA from 1985 to 1994 to carry out bond payments,
receipting of tax increment monies, etc. The model
assumes that no new structures are built in the
tax increment district.
General discussion occurred. No action was required
or was taken.
3. Exhibit 3 is exactly the s~me as Exhibit 2 except
such assumes that development during the past five
years continues during the next five years. Exhibit
3 shows that all costs associated with the HRA will
be totally paid in 1991.
4. Exhibit 4 identifies proposed activities of Phase II.
It was decided that Fred Hoisington would discuss
this particular exhibit later in the agenda.
5. Exhibit 5 reflects the recommended detail budget
modifications to start Phase II activities. Should
the Council/HRA endorse continuing Phase II, a
revised 1985 budget would be required. As cost esti-
mates have not been completed for each of the work
functions associated with Phase II, the budget pre-
sented only includes estimated costs through year
end. Each work function, i.e. stormwater/utility
management plan, broadened study area, market study,
etc. will require specific proposals to be developed
during the next 30 to 60 days. Each will require
separate action by the HRA. Only initial funding for
each of these is included in the revised budget with
the final costs being generated as a part of the 1986
budgetary process, i.e. funding of Phase II work
programs will be paid from both the 1985 budget as
well as 1986.
6. Exhibit 6 represents the tax increment model
if Phase II is endorsed by the City Council/HRA and
includes the recommended changes in the 1985 budget
to start Phase II tasks. Staff recommends that
the Council/HRA move into Phase II.
Decision Re~arding Continuation of HRA/Redevelopment Activities:
It was agreed by Council members and RRA members that the HRA
should continue.
Proposal for Phase II: Fred Hoisington discussed the recommended
Phase II objectives as depicted in Exhibit 4. He stated that
there were three major components of the proposal for Phase II:
Joint City Council/HRA Minutes
July 11, 1985
Page 3
1) The initiation of a broadened study area program
including a traffic analysis of the area between
Eden Prairie and old County Road 17.
2) The initiation of a detailed stormwater/sanitary
sewer study.
3) A program of "continuing education" to keep
developers and the community up to date on the down-
town redevelopment process and to show that
Chanhassen is serious about achieving redevelopment
objectives in the downtown area.
Hoisington presented a revised time line:
1) Adopt concept plan, - sumner, 1985.
2) Plan for the broadened study area (including nego-
tiations-with MnDOT and the Railroad, vis-a-vis
State Highway 5 access) - sunnier, 1985.
3) Update Market Study - September, 1985.
4) Drainage and Utility Study - September, 1985.
5) Imaging Study (based on Market Study) - September,
1985.
6) Developer selection/project feasibility study-
January, 1986.
7) Street feasibility study - spring, 1986.
Hoisington relayed that updating the Market Study was very
important. He stated that he would solicit proposals to update
the study and solicit poetntial costs of updating the existing
McC~nb and Associates Market Study. The Council/HRA also decided
that Brauer and Associates prepare a detailed proposal of a work
program, time line and associated fees for the broadened study
area, the Market Study, Imaging Study and continuing services.
Proposed Budget Amendment to Accomplish Phase II: Robbins
moved, seconded by Bohn to adopt the budget amendment to
accomplish Phase II (adoption of Exhibit 5 [detailed revised
budget] and Exhibit 6 [revised tax increment model]). All voted
in favor and the motion carried.
JOINT CITY COUNCIL/HRA MINUTES
JULY 11, 1985
PAGE 4
It was agreed that the detailed work program for the broadened
study area, time line, and consulting fees would be presented at
the August 15, 1985 meeting.
APPROVAL OF BILLS
Motion by Swenson, seconded by Bohn to approve the bills. Ail
voted in favor and the motion carried.
Motion by Swenson, seconded by Bohn to adjourn the meeting at
9:30 p.m.
Prepared by: Barbara Dacy
August 8, 1985