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Chanhassen 2024 App(DA CARVER COUNTY COMMUNITY DEVELOMENT AGENCY COMMUNITY GROWTH PARTNERSHIP INITIATIVE (CGPI) CuterC��ataCsmmaatt�reloymcntApe�c' COMMUNITY DEVELOPMENT APPLICATION 1. APPLICANT INFORMATION Applicant Project Request Organization: City of Chanhassen Contact Name: Samantha DiMaggio Address: 7700 Market Blvd Chanhassen MN 55317 Phone Number: 952.227.1148 Email: SDiMaggio@chanhassemmn.gov Authorized representative for the execution of the contract(s)- Name: Eric Maass Title: Planning Director Name of Project: Chanhassen Cinema and Hotel Redevelopment Amount of funding request: $ 100,000 Total environmental costs: $ 75,000 Total redevelopment costs: $ 120,509,246 II. AREA OR SITE CONDITIONS General location of Area (Property ID and/or Address): Legal Description of Site: Site Size (acres): Number of Parcels: Number of buildings on site: Current Site Owner: Current appraised or assessed value of the Project Area properties: Current property taxes of the Project Area Properties 575 78t" Street Chanhassen MN 55317, and 570 Market Street, Chanhassen MN 55317 See Exhibit A. 4.05 acres 6 2 Chanhassen Lodging, LLC and Chanhassen Properties, LLC $11,243,600 $201,939 The CDA reserves the right to seek additional information after initial review of the application. Page 1 of 9 (DA CARVER COUNTY COMMUNITY DEVELOMENT AGENCY COMMUNITY GROWTH PARTNERSHIP INITIATIVE (CGPI) GnerGtt�Cammsuil3l�crelol�entl�ecc� COMMUNITY DEVELOPMENT APPLICATION III. COMMUNITY DEVELOPMENT PROJECT INFORMATION Describe the city's goals and needs for the Project including anticipated businesses, housing units, and other proposed components. Please explain the public benefit of the Project. Provide a brief history of the site including previous uses, activities, prior or existing contamination, and other attempts at redevelopment. Describe the Project including location map, photos, and current and projected site plans. Maps should include property boundaries, north arrow, and an accurate bar scale. The city has begun an effort to break down large auto - centric shopping centers in the downtown area in favor of a more traditional grid development pattern that prioritizes walkability. This project will be a catalyst for future redevelopment and will provide much -needed housing units and leasable commercial space for local retailers and restaurants within the downtown Chanhassen area. The sites are currently occupied by a closed movie theatre (Chanhassen Cinema), a closed bar/lounge (High Timber Lounge), and an operational but blighted hotel building (Country Inn and Suites). There are significant demolition and utility costs associated with the redevelopment. The project will consist of two separate structures each containing market -rate housing as well as leasable commercial space. Each building will contain structured underground parking as well. Describe the specific components or i Demolition of existing blighted structures as well as activities that are part of the Project. , removal/relocation of utilities. The construction of two What is the end use of the Project site? After redevelopment is completed, will properties in the Plan Area be publicly or privately owned? Is demolition of slum or blighted buildings or other structures an activity of the Project? new buildings will provide additional housing and retail space in the core downtown. This project will also allow for the installation of new sidewalk sections that will fill a large gap in our current downtown sidewalk network. The project will consist of two vertical mixed -use buildings totaling approximately 313 market -rate apartment units, about 15,000 square feet of commercial space, and over 400 structured parking stalls. ❑ Publicly owned © Privately owned ® Yes ❑ No If Yes, please describe. The properties were assessed by LHB and deemed blighted to qualify for renewal and renovation TIF. A The CDA reserves the right to seek additional information after initial review of the application. Page 2 of 9 (DA Cttxr Gaantl �amm�i1l �ere[ap�t�{ dpt�r° CARVER COUNTY COMMUNITY DEVELOMENT AGENCY COMMUNITY GROWTH PARTNERSHIP INITIATIVE (CGPI) COMMUNITY DEVELOPMENT APPLICATION Describe how the Project will make more efficient use of the site. -redevelopment Site Owner(s) If end user has committed, attach documentation of commitment. Identify any other Project partners such as developers, consultants, and regulating/permitting agencies. copy of the blight report is attached to this grant application. Two of the three businesses on the redevelopment site are closed and have been closed since at least April of 2023 with no plans to reopen. The Country Inn and Suites, while operational, has many deferred maintenance issues and has been assessed for blight along with the Chanhassen Cinema and High Timber Lounge structures. The current buildings rely entirely on surface parking making inefficient use of downtown property. Additionally, those parking lots separate the buildings from the street impacting the character of the downtown. The proposed project will have over 400 structured parking stalls bring the building edge adjacent to the new sidewalk and establish the pedestrian connectivity desired within the downtown area. Roers Companies LLC — a to -be -formed affiliate entity Roers Companies, LHB, HKGi, ESG Architects, Kimley Horn. The CDA reserves the right to seek additional information after initial review of the application. Page 3 of 9 Calm Clanfoxwo Dtoelow"t i1fou (DA CARVER COUNTY COMMUNITY DEVELOMENT AGENCY COMMUNITY GROWTH PARTNERSHIP INITIATIVE (CGPI) COMMUNITY DEVELOPMENT APPLICATION IV. ELIGIBLE ACTIVITIES Please check all activities that apply, briefly describe the activity, and provide the dollar amount requested for the activity. Please see the "Community Growth Partnership Initiative Policy and Procedures Guide" for a description of the eligible activities. Eligible Activity Description CGPI Funding Rea uested ® Acquisition The developer has a purchase $0 agreement to acquire the cinema and hotel properties. Total amount: $11,000,000. ❑ Relocation Payments N/A $0 ® Clearance and Demolition The project will require the $100,000 demolition of 51,731 square feet of building area as well as the removal and replacement of underground utilities for water and sanitary service as well as stormwater management. ❑ Historic Preservation N/A $Click or tap here to enter text. ® Public Improvements The project will result in the $Click or tap here to addition of approximately 510 enter text. linear feet of new public sidewalk. ❑ Soil Corrections N/A $Click or tap here to Rehabilitation/Expansion enter text. ❑ Will be completed as part of the $Click or tap here to New Const — Job Creation total project but not part of the enter text. grant request. V. ACQUISITION AND RELOCATION ACTIVITIES If the project includes property acquisition, clearance and/or construction activities, describe how owners, tenants, and businesses will be temporarily or permanently relocated. When has/will the acquisition be completed? Attach relocation plan, if applicable The Chanhassen Cinema closed in April of 2023 and is not planned to reopen or relocate. The High Timber Lounge closed as a result of the COVID-19 pandemic and was not reopened as part of the hotel offering. The hotel operation will not be relocating. June 2024 N/A VI. PROJECT ENVIRONMENTAL INFORMATION The CDA reserves the right to seek additional information after initial review of the application. Page 4 of 9 CM Conti COM014 Weloxal iron (DA CARVER COUNTY COMMUNITY DEVELOMENT AGENCY COMMUNITY GROWTH PARTNERSHIP INITIATIVE (CGPI) COMMUNITY DEVELOPMENT APPLICATION Has an environmental assessment been ® Yes completed for the Redevelopment Project? ❑ No If so, what level of investigation was done as Phase I & II ESA have been completed for part of the Redevelopment Project? the site. Has the Redevelopment Project site been ❑ Yes found or suspected to be contaminated? ® No Does your Redevelopment Project include the ❑ Yes cleanup of contaminated soils, hazardous waste, or materials? ®No If yes, please describe information on type of Click or tap here to enter text. cleanup, what measures have been taken to address the contamination, consultant reports, and/or Response Action Plan. Describe positive environmental impacts of Click or tap here to enter text. the activities that are part of the Project. VII. HOUSING AFFORDABILITY INFORMATION Indicate the number of housing units planned in the Project, if any. Attach separate sheets if necessary. Unit Type Total # of # of Owner # of Rental Proposed Units Units Units Rents/ Sales Prices Single Family 0 0 0 $0 Townhouse 0 0 0 $0 $1,600- Apartments/Condominiums 313 0 313 $3,500/ month Duplexes 0 0 0 $0 Other: 0 0 0 $0 Will there be any mechanisms to ensure long-term affordability? ❑ Yes a If yes, please describe. Click or tap here to enter text. The CDA reserves the right to seek additional information after initial review of the application. Page 5 of 9 (DA CARVER COUNTY COMMUNITY DEVELOMENT AGENCY COMMUNITY GROWTH PARTNERSHIP INITIATIVE (CGPI) Cum G�nmut�rela�mcsatltge�ct COMMUNITY DEVELOPMENT APPLICATION VIII. ECONOMIC BENEFITS Projected appraised or assessed value of the site after redevelopment: $ 101,400,000 Pay Year: 2028 What will be the estimated property $ 1,390,000 taxes after redevelopment? Pay Year: 2028 Project the number of new jobs on Total new jobs (FTEs only) = 7 the Project site created after redevelopment. Number of new jobs with wages 75 (includes retail workers) Click or tap here to enter text. greater than $17.00 per hour Project the number of jobs retained on the Project site after redevelopment. Total retained jobs (FTEs only) = 0 Number of retained jobs with wages 0 greater than $17.00 per hour IX. PROJECT SOURCES AND USES Itemize all funding sources for the Project and the Activities identified as part of the Project. Please include the requested CGPI funds in total. Source of Funds Amount Committed Pending Equity $ 35,000,000 ❑ TIF $ 6,790,000 ❑ Debt $ 78,619,246 ❑ CGPI $100,000 ❑ Total: $ 120,509,246 Itemize all Project expenses for the Project and the Activities identified as part of the Project. Be as detailed as possible. Please include the requested CGPI funds in the Funding Sources column. Project Activities/Expenses See Exhibit B for the Breakdown Amount $ 120,509,246 Tota�$ 120,509,246 Fundina Source Please see above. The CDA reserves the right to seek additional information after initial review of the application. Page 6 of 9 (DA CARVER COUNTY COMMUNITY DEVELOMENT AGENCY COMMUNITY GROWTH PARTNERSHIP INITIATIVE (CGPI) CMConti 4=01gk1elosatiiiew COMMUNITY DEVELOPMENT APPLICATION List other sources of funds requested or considered but not obtained for the Project, and explain why they were not obtained, to the best of your knowledge. (The purpose of this question is to ensure all other funding sources have been exhausted.) Click or tap here to enter text. X. PROJECT READINESS TO PROCEED Please provide a detailed timeline of the Preliminary Plat and Site Plan was approved at Project with all actions, phases, and the February 20, 2024, Planning Commission anticipated dates for completion. meeting and the TIF will be considered at the March 11, 2024, City Council meeting. Please indicate whether any of the following entitlement or due diligence actions are required or have been completed for the Project: ❑ Comprehensive plan amendment: Status: N/A ® Zoning amendments or variances: Status: On February 20, 2024, the Planning Commission approved 7-0 the build -to -zone variance for the SW corner of the west building at 29.6' from the property line where the standard build -to - zone is now 0-15'. ❑x Environmental review: Status: Yes, Phase I & II ESA have been completed for the site. ❑ Market or feasibility study: Status: N/A If the activity that is to receive CGPI The project will take 18 months for construction funding will not be completed in 12 and is anticipated to be opened in February of months, please explain why. (NOTE: The 2026. The grant funds for demolition would be CGPI program requires all CGPI-funded fully utilized before October 31, 2024. activities to be completed within 18 months.) i The CDA reserves the right to seek additional information after initial review of the application. Page 7 of 9 (DA Exhibit A LEGAL DESCRIPTION: Per Commitment No. 67573 dared ,1•ine 26, 2023. 8:00 amp Lot 1, Bieck 1, Bloomberg 2nd Addition, except that part contained within the plat of Frontier Cirema Addition, Carver County. Mirresota. And Lot 1, Block 1, Bloomberg Addition and Outlots A and 13. Bloomberg Addition, Carver County, Minnesota. And Lot 2. Block 1, Bloomberg 2nd Addition, EXCEPT the West 90.00 feet of the South 13.50 fee, thereof; and further excepting the East 60.00 feet of the West 150:00 feet of the South 3.50 feet thereof, Carver County, Minnesota. (Abstract Property) Per Commitment No. 67501 (Supplemental Number 1) dated October 24. 2021 8:00 am: Lot 1, Block 1, Frontier Cinema Addition, according tc the recorded plat thereof, Carver County, Minnesota. AND That part of Lot 1, Block 1, Market Street Station, according to the recorded plat thereof on file or of record in the County Recorder's office in and for Carver County, Minnesota, lying easterly, southerly, easterly and northerly of the following described line: Commencing at the most southeasterly corner of Lot 1, Block 1, Market Street Station; thence North 00 degrees 08 minutes 32 seconds East, assumed bearing, along the most easterly line of said Lot 1 a distance of 147.78 feet; thence South 89 degrees 53 minutes 01 seconds West a distance of 102.49 feet; thence North 00 degrees 03 minutes 20 seconds West a distance of 281.41 feet; thence South 89 degrees 56 minutes 40 seconds West a distance of 0.61 feet; thence North 00 degrees 03 minutes 20 seconds West a distance of 1.14 feet; thence South 89 degrees 56 minutes 40 seconds West o distance of 4.10 feet to the point of begirning of the line to be described; thence South 00 degrees 03 minutes 20 seconds East a distance of 1.79 feet; thence North 89 degrees 56 minutes 40 seconds East a distance of 2.62 feet; thence South 00 degrees 03 minutes 20 seconds East a distance of 209.97 feet; thence North 89 degrees 56 minutes 40 seconds East a distance of 7.10 feet more or less to the intersection of the east line of said Lot 1 and said line there terminating. Page 8 of 9 Exhibit B Construction 42,320 Architecture 1.005.0UC Construction Management 276.r Legal 75,40, , Acquisition Cost (Land + Building) 11000.0uv Leasing/Marketing 276,000 SAC/WAC & City Fees 5,212.206 Guilders Risk Insurarre 865,600 Proper ty Taxes - Construction Period 100.000 Carried Equity ' 1,574,174 Construction Period Interest 7.605.666 Title Insurance/ Closing & Recording Costs 190,507 Financing Fees 1662, 204 3rd Par ty Due Diligence 25,000 Geotech/Phase 1 ESA/Civil Survey 205,000 inspectirxa Architect 22.500 FF&E 368,000 Leaseup Operating Reserve 375,000 Investor Pref Return Developer Fee 2-886,257 Contingency 2,216,000 COnsbuct on 24.570.000 Architecture 955,000 Construction Manageme"t 189.000 Legal 75.000 Acquisition Cost (Land + $wilding) 6,500,000 Leasinq/Marketing 189.000 SAC/ NAC & City Fec3s 2,662,796 Builders Risk insurance 554,975 Property Taxes - Construction Period 100.000 Can nea Eauity ' 1.264, 650 Cc- -riod interec i 2.338.063 Trtie Ir15UfanCe / CtOSirrg $ Recording Costs 1CA,654 Finaricic�_, ees 3rd Party Due Diligence 2J.U0 Geotech/Phase i ESAJCivil S;rvey 13C: Inspec ting Architect 22, �.. FF&E 2�2,000 Leaseup Operating Reserve 325.000 investor Pref Retuin Developer Fee 1,254,885 ContmQency 1,303,500 Total $120,509,249 DocuSign Envelope ID. A8F3EAA8-1DD0-4BCC-A01D-02A1CCFC160B CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: February 12, 2024 RESOLUTION NO: 2024-08 MOTION BY: McDonald SECONDED BY: Kimber A RESOLUTION APPROVING A SIGNATURE OF APPLICATION TO THE CARVER COUNTY COMMUNITY DEVELOPMENT AGENCY FOR GRANT FUNDING THROUGH THEIR COMMUNITY GROWTH PARTNERSHIP INITIATIVE WHEREAS, the City of Chanhassen has identified a proposed project within the city that meets the Carver County Community Development Agency (CDA) Community Growth Partnership Initiative (CGPI) Grant Program's purpose and criteria; and WHEREAS, the City has established a Redevelopment Plan of which the proposed project is a component; and WHEREAS, the City has identified a project that will create living wage jobs; and WHEREAS, the City has the capacity and capability to ensure the proposed project will be completed and administered within the Community Growth Partnership Initiative predevelopment program guidelines; and WHEREAS, the City has the legal authority to apply for financial assistance; and WHEREAS, the City is supportive of affordable housing and of the CDA's mission to improve the lives of Carder County residents through affordable housing and community development. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chanhassen approve the application for funding from the Carver County Community Development Agency Community Growth Partnership Initiative Grant program. BE IT FURTHER RESOLVED that if the application is approved by the Carver County Community Development Association, City of Chanhassen Planning Director Eric Maass is hereby authorized to execute such agreements as are necessary to receive and use the funding for the proposed project. PASSED AND ADOPTED by the Chanhassen City Council on this 121h day of February 2024. ATTEST: DocuSigned by: Kim Meuwissen, City Clerk YES Ryan McDonald Schubert von Oven Kimber DocuSigned by: �,iic. atn, Elise Ryan, Mayor NO ABSENT