EDA 2008 03 10
CHANHASSEN ECONOMIC
DEVELOPMENT AUTHORITY
SPECIAL MEETING
MARCH 10, 2008
Chairman Furlong called the meeting to order at 9:55 p.m.
MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman Ernst, and
Councilman McDonald
MEMBERS ABSENT:
Councilwoman Tjornhom
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen and Kate Aanenson
APPROVAL OF MINUTES:Ernst moved, McDonald seconded to approve the minutes of
the Economic Development Authority meeting dated January 14, 2008 as presented. All
voted in favor and the motion carried unanimously with a vote of 4 to 0.
RELEASE FROM CONTRACT FOR PRIVATE REDEVELOPMENT, HERITAGE
PARK APARTMENTS.
Hokkanen: This item is a request for a release from a contract for private redevelopment in a
reimbursement agreement for a project that was included in TIF District #1. Heritage Park
Apartments. The TIF district has been decertified since 2004. There’s two things that are a little
bit different about these than the ones you’ve, about this release than the ones you’ve seen most
recently. One is that part of the assistance that was provided was re-payable so they’ve been
making payments to us over the past few years and they made that final payment earlier this
month and now have repaid the total amount due. And the second small nuance is really
irrelevant to you but I want to make sure it’s on the record. The contract for private
redevelopment was never recorded, that we’ve been able to find, and so this release will not be
recorded, but the property owner would like to have it for their files in case something comes up
in the future in terms of a refinancing or a transfer of ownership.
Furlong: Okay.
Gerhardt: Who was responsible for that?
Hokkanen: Well typically the property or project owner would do the recording so.
Aanenson: That wasn’t you was it Todd?
Hokkanen: No, you’re not the project owner.
Furlong: They would record something against their own property?
Aanenson: I wouldn’t think so.
Hokkanen: Well that’s how we do the releases. Yeah, good point. Okay, Todd it was your
fault.
Gerhardt: Usually we do it with the plat. We send it over to Roger’s office so I don’t know what
happened there.
Hokkanen: It may be out there and we just weren’t able to locate it so that’s why I just wanted to
make sure it was on the record.
Gerhardt: I don’t know how many meetings we had on this one. It really worked out, yeah
worked out great. I mean we had an affordable element incorporated with it so it put them in a
different class rate. And then we came in and provided TIF assistance which was basically a
loan so it came back as non-increment of the $253,000.
Furlong: It just came back to the city?
Gerhardt: Yeah. And the last payment is $60,000, which we just received.
Aanenson: The nice thing is too, is they send us a report. Quarterly report of their tenants so
that gives us credit towards the Livable Communities Act because they give us that report of who
their tenants are because they qualified affordable units in there so it’s pretty good. A success.
And nobody knows what units are in or anything. It’s just a few.
Furlong: And is this, so this is kind of the money is coming outside of the TIF district. That’s
coming after the district was decertified.
Gerhardt: The only condition of them to repay us is that they had to make a profit. And so in the
last 5 years, after they refinanced and got a lower interest rate, they became profitable and you
know, we didn’t think we’d ever see the money. You know you always come up with expenses.
They couldn’t come up with any more expenses.
Aanenson: Double good deal.
Furlong: Well that means they’re doing well.
Gerhardt: That means they’re doing well and we get to reap the benefits.
Furlong: Okay, excellent. Very good. Any questions on this? Is there a motion to approve
staff’s recommendation?
Ernst: So moved.
Furlong: Thank you. Is there a second?
Litsey: Second.
Furlong: Made and seconded. Any discussion?
Ernst moved, Litsey seconded to approve the attached “Release of Land from Contracts for
Private Redevelopment and Assessment Agreement and Reimbursement Agreement”
between the City of Chanhassen and CHADDA/Heritage Park Apartments. All voted in
favor and the motion carried unanimously with a vote of 4 to 0.
Furlong: That’s it for tonight, is that correct?
Hokkanen: Yep.
Furlong: Is there a motion to adjourn?
Ernst moved, McDonald seconded to adjourn the meeting of the Economic Development
Authority. All voted in favor and the motion carried unanimously with a vote of 4 to 0.
The meeting was adjourned at 10:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim