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1985 10 17JOINT HRA/CITY COUNCIL MINUTES OCTOBER 17, 1985 CALL TO ORDER Vice-Chairman Horn called the meeting to order at 6:35 p.m. Members present: Commissioners Bohn, Swenson and Horn and Mayor Hamilton. Members absent: Councilmembers Geving and Watson. Also present: Fred Hoisington, Don Ashworth, Barbara Dacy, Herb Bloomberg, Brad Johnson and Larry Smith of Housing Alliance, Inc., and Barney and Wanda Schlender of Sunnybrook Development. APPROVAL OF MINUTES Swenson moved, seconded by Bohn to approve the minutes of September 19, 1985. All voted in favor and the motion carried. REVIEW PRELIMINARY PLANNING ~REEMENT~ CHADDA Hoisington reviewed the draft of the proposed planning agreement. He stated that the document was prepared by CHADDA and submitted to him for his review. He stated that he met with represen- tatives from CHADDA to develop the proposed draft. He stated that the agreement establishes, CHADDA (Chanhassen Downtown Development Associates) as the "redeveloper" who' is responsible to furnish the HRA with a planning document proposing a specific commercial, retail, and/or residential project within the plan area as designated in Exhibit A. Hoisington passed out an amended Exhibit A which designates much of the downtown study area as included within the plan area. Those areas that are- excluded, he stated, are the lots immediately south of and adja- cent to Chan View, east of the existing residences and apartment building, and the area in the northwest corner of the Laredo Drive and West 78th Street intersection. Hoisington stated that the redeveloper has 180 calendar days to complete the planning document, during which time a market study will be completed to cost approximately $15,000. Hoisington stated that during the 180 day period, the City is agreeing not to approve any develop- ment proposal involving a commercial redevelopment in excess of 5,000 net rentable square feet within the plan area unless the Authority is advised by legal counsel that the Authority would be subject to legal liability. Hoisington also explained that the agreement will not apply to any current fee land owner within the plan area. Hoisington also stated that during the 180 day period that the HRA and redeveloper will negotiate in good faith to secure necessary approvals for a master redevelop-ment-agreement which would designate (~ADDA as the master redeveloper. Hoisington indicated that the master redevelopment agreement would be the second agreement in this process and that a third agreement could be devised for a specific developer for a speci- fic project. Brad Johnson, Housing Alliance, Inc. stated that CHADDA will report back to the HRA on a monthly basis at the regular HRA meetings. JOINT HRA/CITY COUNCIL MINUTES OCTOBER 17, 1985 PAGE 2 Mayor Hamilton stated that the word "morals" should be elimi- nated from the second whereas clause on the first page of the agreement. The other members concurred. Commissioner Bohn asked if current owners are affected in any way by this agreement. Ashworth stated that the agreement specifi- cally excludes current fee owners from the provisions of the agreement. Commissioner Swenson asked if the agreement is in essence a moratorium on development. Ashworth stated no, that redevelopment can occur up to 5,000 square feet and again, any current fee owner is exempted from the agreement. Commissioner Swenson also wanted clarification on the liability clause in Item No. 4. Ashworth stated that the attorney's office did review the agreement and did not have concerns regarding the language of the agreement and noted that the agreement prevents the HRA from ini- tiating redevelopment with any other redeveloper other than CHADDA. Commissioner Horn stated that the term "preliminary" in the title should be eliminated. Other members concurred. Commissioner Bohn moved to approve the planning agreement with the noted changes including the elimination of the word "preliminary" in the title, the elimination of the term "morals" in the second whereas clause, and the inclusion of the term "current" in the last sentence of Item No. 4. Seconded by Swenson. All voted in favor and the motion carried. CONSIDERATION OF SPECIAL ASSESSMENT REDUCTION PROGRAM FOR SUNNYBROOK DEVELOPMENT Barney and Wanda Schlender presented their slide show of the pro- posed country inn and restaurant complex to be located north of Lake Susan in the Chanhassen Lakes Business Park Third Addition. Sunnybrook Development is requesting a 10% reduction in special assessments as opposed to the now instituted 7% reduction for special assessments. Ashworth stated that this item should be tabled until more detailed information is made available regarding the project and so that staff can prepare an analysis of the financial impact. Motion by Swenson and seconded by Bohn to table action on this item until a future meeting. All voted in favor and the motion carried. Motion by Swenson and seconded by Bohn to amend the agenda to allow Brad Johnson, Housing Alliance/CHADDA to make a brief pre- sentation. JOINT HRA/CITY COUNCIL MINUTES OCTOBER 17, 1985 PAGE 3 CHADD A PRESENTATION Johnson introduced Larry Smith from his firm to make the presen- tation. Smith presented the flow chart for the team concept and discussed the timeline involved with such. Smith also presented an initial land use ooncept for the downtown area. Johnson stated that he has been meeting with a developer who would like to construct apartment units in the downtown area and has determined that mortgage revenue bonds may be necessary in order for the project to be completed. Johnson stated that the mortgage revenue bond process would have to be completed by the first of the year since legislation now pending at the state and federal levels may affect the municipality's ability to issue such bonds. Johnson stated that he would be present at the next City Council meeting to present more information regarding this issue. 1986 BUDGET AND CASH FLOW ANALYSIS REVIEW Ashworth presented the 1986 Budget which incorporates expenditure items such as the Broadened Study Area, Market Study that is a part of the CHADDA agreement, and the time involved for Fred Hoisington's work. Ashworth also presented the cash flow analy- sis document and explained the overall status of the tax incre- ment districts. Motion by Swenson, seconded by Bohn to approve and accept the 1986 Budget and Cash Flow Analysis. All voted in favor and the motion carried. VERBAL REPORTw HALVERSON LEASE ~X~REEMENT Ashworth stated that staff has been meeting with Dave Halvorson regarding another lease in the City owned portion of the HRA building. He stated that he felt the City will not be in a posi- tion to sell this portion of the building until mid-summer, 1986. Until that time, Halverson would be occupying this space for his business as well as a boat and RV storage area. Ashworth stated that the lease would be considered by the HRA next month. CHANHASSEN BOWL UPDATE Ashworth stated that before the $200,000 construction loan can be issued to the owners of the bowling center, the City has to insure that all requirements of approval and City ordinances have been complied with. He stated that Fred Hoisington and appropriate staff members are reviewing the plans to determine items which have not been completed satisfactorily and developing cost estimates as well. He stated that the bowling center c~ners are anxious to receive the loan money in order that construction JOINT HRA/CITY COUNCI MINUTES OCTOBER 17, 1985 PAGE 4 costs and bills can be paid. Because of their request, Ashworth stated that the item would be considered by the City Council on November 4, 1985 and a special HRA meeting could be scheduled on November 7th. The HRA members agreed that a special meeting could be conducted on that date. SATELLITE MEDICAL STATION Ashworth reviewed his involvement with the Waconia Ridgeview Hospital staff regarding a satellite medical facility somewhere in the downtown area. He stated that local physicians in town are interested in using the facility. Ashworth stated that although nothing concrete has been proposed, that he wanted the HRA to be aware that staff was working with the hospital to locate a possible site. The HRA recommended that staff investi- gate the Park-Nicollet facility as background information. Commissioner Bohn moved, seconded by Commissioner Swenson to adjourn the meeting at 9:29 p.m. Don Ashwor th Executive Director Prepared by: Barbara Dacy on October 30, 1985