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EDA 1997 07 24CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING JULY 24, 1997 Chairman Boyle called the meeting to order at 6~30 p.m. MEMBERS PRESENT: Nancy Mancino, Gary Boyle, Steve Berquist, Mike Mason, and Mark Senn. Jim Bohn arrived late to the meeting. MEMBERS ABSENT: Mark Engel STAFF PRESENT: Todd Gerhardt, Asst. Executive Director APPROVAL OF MINUTES: Berquist moved, Mancino seconded to approve the Minutes of the Economic Development Authority meeting dated July 24, 1997 as presented. VISITOR PRESENTATIONS: None. DISCUSSION REGARDING THE SALE OF LAND TO MR. BURDICK. Boyle: I understand Mr. Burdick has put everything on hold. Would you like to brief us Todd? Is there any additional information we should know? Gerhardt: Staff handed out a letter, memo from Brian Burdick to City Council and EDA members withdrawing their option to purchase the West 79th Street land. ! received those yesterday at about 4:00 and ! think his memo kind of details his reasoning. He felt that the price was one that didn't make economic sense for his development. Referenced that the planning staff liked the preliminary plans that he presented and that he would be interested in buying the land if the HRA would consider lowering the price and that we shouldn't sell it to anybody else at a lower price than what we have offered to him. That's kind of a condensed version of what is written in there. Boyle: Do we have anybody looking at the property now or showing interest? Gerhardt: ! had a hotel group call me here two weeks ago. ! sent them plans. I've got another restaurant group interested in it with preliminary discussions. Haven't sent them any plans yet. And car wash... So other than that, oh. And a conference center. Boyle: Conference center? Gerhardt: Yes. Larry Zamor has paid off his Chanhassen Inn. Called me Monday. Calls me two, three times for the last 11 years and he's going to look into it. ! told him that the going price is... a square foot. He didn't bat an eye and said that he made his last payment on the hotel, his hotel and has got it paid it off and he's looking at something else... Economic Development Authority - July 24, 1997 Boyle: Thank you. Steve Berquist, ! think you had some questions. Gerhardt: I don't know if he wants that out in the streets though. Boyle: We'll leave it here then. Berquist: Well the meeting before the last meeting where we, the Burdick's came and we ended up, ! thought coming to a conclusion on an offer. ! was under the impression that we were, ! think we were all in agreement and ! just want to get some definition as to what they thought, Commissioner Senn's position, how it differed than the rest of the Board. The letter from Melchert says, allow more time to attempt to renegotiate terms of a purchase and sale more in line with the thinking of Commissioner Mark Senn. Was that history or is that something, did you have any conversation with him Mark? Senn: Where are you looking at? B erquist: I'm looking in the third paragraph of Luke Melchert's letter dated in July. Gerhardt: The only thing that comes to my mind is that at two meetings ago Mark presented a proposal to purchase the property and ! think the HRA didn't, or the EDA, sorry, didn't go for that and then you presented an offer and Mark came back and said well that's pretty close to what ! offered and so, and then the EDA voted on yours. Is that how you remember it Mark? It wasn't in the last Minutes. It was the meeting before. Mancino: ! don't remember there being any substantial difference so. Gerhardt: Yeah, and then Steve kind of ran the numbers and ! think it came out to you know 20 cents or something difference or something like that. Remember doing that Steve? Berquist: Oh yeah. I'm just not exactly sure what.., perhaps they're looking for something on which to hang their hat in terms of coming up with an agreement from at least partial member or members of the Board and ! don't know. ! thought Mark's numbers were close to mine by the time everything washed out. But I'm curious about the way they chose to phrase it. Senn: ! just remember that our numbers came out real close towards the end. If you went back to the February 20th meeting, ! think at that time the Minutes said, Mark said something allowing one sale in town at $10.00 a square foot is not a comp. And went on to indicate that maybe $8.00 or $8.50 would be out of line. Would be more in line, excuse me. Berquist: Then we ended up netting out, with my offer as ! recall, with the A+ specials. Gerhardt: Well, when you say specials it is 858 and from water hook-ups you mean? Berquist: Yeah. 2 Economic Development Authority - July 24, 1997 Gerhardt: ! don't like to call them specials because in the purchase agreement and my reference that we pick up specials. The hook-ups, there's to be a shared driveway between Applebee's and Tires Plus and the development to the east and with that there's some shared utilities. They brought in sewer and water stubs and that development should pay for that half of the shared driveway that's put in. So we've allowed a restriction on our land for whoever comes in and buys that to reimburse the Applebee's development for those costs at a 25% per lot debt ratio. It's an equal ratio per square foot. Mancino: And that's going to be the only access to that property? Gerhardt: Right. ! mean they would have had to put those in if the development was to occur. Mancino: Sure. Berquist: Well the end of this question to at least bring it to a conclusion is that are we, you know you're getting some other calls. We essentially arrived at a price to sell it to Burdick. Are we willing to sell at that price to any other purchaser? Mancino: Seems fair to me. Put it back on the market and see what calls we get. Gerhardt: ! think the site is going to be much more marketable after Phil Elkin, our Water Resource Coordinator completes the drainage plan for that area. Right now ! think a lot of people are hesitant from those willows growing up down there. That area is called for a ponding, two ponds to be established in there. And later part of August, September he is going to go in there and grade and dredge that area for that area to be looking more like the other side of Market Boulevard. Berquist: He's going to do work on the land that we have for sale? Gerhardt: No, he's going to do the land between West 79th Street and Highway 5 on the south side of West 79th, north of Highway 5. The remnant piece that we bought from Tires Plus and that we had as a part of the West, Market Boulevard and West 79th Street construction. Bohn: The garbage property? Gerhardt: Yeah. McCarville. Berquist: Will that then address the, Vernelle came up to Council the other night and talked, ! think it was Vernelle, and asked us to begin to consider what we could do to that site, at least in my mind's eye it was that site, in order to bring it more in line with the rest of the Highway 5 frontage. Gerhardt: The part of our wetland relocation mitigation from.., correct that area. There had been some filling done on that site prior to our acquiring that. So what we're trying to do is to bring it Economic Development Authority - July 24, 1997 back to more of a natural wetland vegetation. The reed grasses, standing water, and it's also an outlet for storm water from the Tires Plus and right now you, it's not really natural. And then we would.., some of the native vegetation grasses as part of the restoration. Mancino: Which will also be respected on the Villages on the Ponds so that... Gerhardt: ! received calls from both Americana Bank and Dan Herbst with concerns of that vegetation. More the willow trees that are just, it' s not really natural. Berquist: So that will dress the front of that property up a little bit more in your thinking as it will make that property that much more attractive. Gerhardt: Yeah, we're going to get 4:1 slopes with... Berquist: Well I'd be interested to know what the rest of the Commissioners think about changing the response to your sale inquiries to reflect numbers similar to what we've offered the Burdick's, rather than the arbitrary $10.00 a foot. Boyle: Could ! have a clarification ! guess. Todd, the $8.28 a square foot, as ! understand it was offered was net and we, seller agreed to pay up to $100,000.00 of soil corrections, is this correct? So if that's assuming there would probably or could possibly be, and ! don't know if this is a correct number, another $100,000.00 worth of soil corrections so getting a net of $8.28, assuming that the purchaser would have to pay a certain amount of soil corrections. That' s how ! think you arrived at that net of $8.28, is that not correct Steve? ! just want to make sure that we're on the same board and everybody understands. Berquist: ! wanted, all ! wanted, ! wanted the City to achieve a net gain of somewhere in the neighborhood of 5 iA... That's what ! wanted to see, cash. So the big number was $9.50 a foot. $100,000.00 for soil corrections in that deal. And then... Mancino: ! feel very comfortable with Burdick's price, etc. ! want it to be put out on the market. ! want to give you some room to negotiate and obviously the right price is going to sell. The wrong price won't. Let's see what the market does so if you have to start out a little high and come down, however it is that the negotiations go, you know where we, or the EDA felt comfortable with Burdick. Boyle: ! guess we're going that direction, Jim. Make some comments and then I'll go back over to Mark. Bohn: ! agree we can always drop the price .... see what we can get. Boyle: Mark. Senn: Nothing. 4 Economic Development Authority - July 24, 1997 Boyle: Mike, would you like any comments? Mason: I certainly want us going any lower than that so I think we need to start higher but I agree that that sounds like that's appears to be a fair price and it seems reasonable so I certainly wouldn't want to go any lower than that. I guess therein lies the problem is where do you start out at then. It's what, you know and unless you tell somebody this is bottom line and we're not going to. Berquist: Well I mean that, if I'm out looking for land, I don't look for land all the time. Mark always does.., give some insights into it. If I'm out looking for land and I'm calling three or four pieces, property owners of pieces that are usable for what I want to do, I know darn well that if I call a broker, I'm going to negotiate with a broker. I don't necessarily know that with the City... but I also realize that closing on a piece of land that the City owns and going through the hoops that the property would require to become developed would be much more involved than with another piece of property. If someone told me 10 and I called somebody, if Todd told me 10 and I called someone else and they said $8.50, whatever, and it was a like to like site, I wouldn't... Maybe I'm looking at it very simplistically. Boyle: I think Steve if somebody wanted the property, not going necessarily in the same direction as your scenario but if somebody wanted the property, they're going to make an offer at whatever price they felt was fair. Unless your scenario obviously said that two alike, they're going to take the cheaper. Gerhardt: I don't, I pursue them a couple of times after they call me too. See if they're still interested. But when ! hear Famous Dave's is working with Lotus, ! don't call them again. Or if the Legion was back on, ! don't pursue any other tenant. But if! call them back and show that we are interested in selling. ! can lead them to... flexibility. Berquist: Well my perspective is certainly fraught with naively so I'm fine. Boyle: Okay, if there's no further comments, questions or discussion, we'll move right on to item 3 on the agenda. CONSIDER PAYMENT TO DEAN JOHNSON REGARDING THE OAK POND DEVELOPMENT. Gerhardt: Mr. Chairman, EDA members. This item was tabled at our last EDA meeting for staff to do a comparison of values and increment. Attached is a parcel by parcel listing of values associated with 1996 and 1997. The percentage increase and decrease in values of each of those versus '96 and, '96 versus '97 and TIF amounts of '96 and '97 and the percentage increase, decrease in those TIF amounts versus the prior year. You'll notice a lot of them are still empty lots that aren't on for full value. And that the overall percentage of, in this case increases is 19% in value overall the parcels and 33% increase in TIF. For '96, we owe him a payment of $124,069.18. '97's payment to him would be $165,139.25. Economic Development Authority - July 24, 1997 Boyle: Is the 1997 due now also? Gerhardt: First half would be due now. Second half would be due. That shows the, you have two copies of them. There is a map that shows the parcel by parcel too on the attachment. It was a duplication. ! don't know why you got two. But the City Council met with the Homeowners Association this past Monday night. They discussed the upcoming criminal trial between the City of Chanhassen and Dean Johnson which is scheduled for August 18th? Berquist: 13th. Gerhardt: 13th. And the discussions with them were one that a big hurdle we need to get over was coming up with some type of criteria to allow Dean Johnson to go in and correct the eleven building code violations. And the conclusion of that was that the homeowners were to provide us with a list of all the improprieties, damage that has occurred on the parcels. We have kind of an itemized list of all the violations per unit and the Homeowners Association was to update that list and get it back to us hopefully the end of this week. We haven't heard from them. I've asked Steve Kirchman to call them and ask them where they are in that process so that we could submit a letter to Dean Johnson stating that he is permitted now to go onto the property with an inspector which will be chosen between the City and the Homeowners Association to monitor his work. The Homeowners Association agreed to working towards... Boyle: You know at the conclusion of our last meeting, in my opinion ! left the meeting feeling that it really wasn't in the jurisdiction of the EDA to withhold TIF payments to help force satisfaction of the homeowners. That was the legal opinion that ! received and ! don't know if that's correct but if that is correct, ! think we are probably obligated to pay the individual what is owed to him regardless of how much we might disagree and wish we could use that as leverage to satisfy the homeowners. Comments? We'll start with you Jim if you'd... Bohn: ! agree with you that ! don't feel that... Boyle: Nancy. Mancino: Well ! think principally and legally you're right. ! would however like to make payment sometime later in August. Boyle: ! understand. Steve. Berquist: Well, ! was reading this thing and I'm still trying to figure out what some of it means. Todd, I'd like you to help me with this. Let's take the first, the ID number. 1996 total value is $1,300.00. 1997 total value is $3,000.00. Gerhardt: It's the empty lot. It's probably one of the units that hasn't been built yet. Berquist: That hasn't been built yet or isn't on. Economic Development Authority - July 24, 1997 Gerhardt: 560, yes. It's the ones over. Berquist: I've got to get oriented. So this also includes the townhomes. The twin homes that are across the street now. Well, the more expensive units that are across the street. Gerhardt: Yeah, it's one of these units over here that hasn't been, ! mean they're just building them now. Berquist: Right. But what ! found in looking through here is that anything that was fully taxed in '96 showed a, showed no increase in valuation in '97. None. Zero. There wasn't a single thing that ! found through here, albeit quickly, that was fully taxed in '96 that had an increase in valuation in '97. Gerhardt: Yeah. Typically Orlin won't come back in and reassess for three years on new construction. Berquist: Okay. Gerhardt: And...would be, you know here's one that was at $61,000.00 and then bumped to 865. It was probably a partial. The one right above it was $99,100.00 and then of course it was $99,100.00 the next year. The example that you've given and he just hasn't re-evaluated that. Berquist: Well look at the last page. Sixth one down we've got a 3% bump. Eighth one down we've got a 4%. Ninth one, we've got a 4%. Tenth one we've got a 22%. Fifth, sixth one from the bottom we have a 1% bump so apparently there have been some re-evaluation taking place. Gerhardt: Odds are that they probably put in an air conditioner or did some type of improvement that they may have drawn a building permit. Odds are maybe an air conditioner. Would be my guess. Senn: Well you're saying he doesn't physically inspect for three more years but he still increases valuations just based on his computer programs and formulas. He does across the board increases on the entire city. Gerhardt: It doesn't look like he did it for a lot of these parcels. Senn: Well, which suggests there's a reason for it other than your standard models because the standard models increases everybody. Mancino: In fact we had two applications from homeowners in Oak Hill. Not Oak Hill, sorry. Gerhardt: Yeah, that's for '98 values. For values payable in '97. They didn't have '98 values. So this was, would have been, whoever would have complained last year. There are some people in the community that... Economic Development Authority - July 24, 1997 Berquist: Well ! mean the reason ! bring it up is I just want to, if in fact we don't have a legal leg to stand on and withhold payment, ! just want to make darn sure that we're doing, if there's nothing in here that violates the development agreement that qualifies him to get the money back, ! mean in any way, shape or form. You know ! keep thinking when we talk enough, we talked on Monday night, we talk about the hammer? Gerhardt: The hammer? Berquist: The hammer. And this is a couple of pounds on the working end of the hammer. Gerhardt: ! mean he calls me once every other week and you know is asking me, you know where do you think this is going to go and ! tell him, ! don't know. ! know that you know that a lot of things would be resolved at your criminal trial. ! think the City/EDA, ! mean you can't divorce yourselves from the two. Have a difficult time making a payment to you that possibly broke some criminal violation. You know ! think it's based on you know.., philosophy or judgment that everything's okay. ! think you.., hang your hat on some weak language that says all buildings have to meet building codes... Berquist: Well we did give him a CO but we also charged him with nine misdemeanors, eleven misdemeanors. Violations of the building code. Gerhardt: That's the card ! lay on him so. Mancino: That's what our whole legal premise is on. Gerhardt: ! say that we probably just sit back until he's filed some kind of legal court order.., or at least wait until after the... Berquist: Where does he need this? Gerhardt: Pay for the roads. (There was a tape change at this point in the discussion.) Senn: ... As long as that lawsuit's going, any and all agreements may become a part of a settlement process. Secondly, so long as any tax periods we're dealing with is subject to appeal, don't think we should make a TIF payment on it because the homeowners, in my eyes have a pretty good case for appeal which can go back two years. And thirdly, as far as the agreement goes, he is in default of the agreement simply by the language in there as it relates to being in violation of the building code which is supported by the lawsuit. So to me on those three premises ! don't know how you would ever think of making payment to him. But that's just my opinion. Mancino: Motion? Economic Development Authority - July 24, 1997 Gerhardt: No. Mason: ! guess my only counter. I'm clearly in agreement with everything that's been said here but ! think my counterpoint to Mark's comment is, if our legal people tell us we have absolutely no ground to stand on and he's going to go after us, regardless of our personal feelings in the matter, ! mean that, two wrongs don't necessarily make a right. And ! certainly am not advocating paying him at this time but ! keep hearing our legal counsel saying you don't have a leg to stand on here so ! do think we need to be careful with this but ! certainly think we should do whatever we can to make sure the job gets done down there. Over there, excuse me. And if that means holding off as long as we feasibly, possibly can, ! certainly am all for that. Boyle: Steve. Berquist: What Mark says makes perfect sense. He's absolutely right. Mancino: ! think we're all in agreement. Boyle: I do too. And a motion is not called for. With that we will move right onto item number 4. REVIEW PARK AND RECREATION COMMISSION RECOMMENDATIONS REGARDING THE PAULY/PONY/PRYZMUS SITE AND OLD RED-E-MIX SITE. Gerhardt: Attached you'll find a memo from Todd Hoffman, our Park and Rec Director, outlining the Planning Commission's request to see two projects accomplished in downtown Chanhassen. One, they'd like to see Pauly/Pony/Przymus site dedicated as a public park and be developed as a park. And they also recommended that the old Red-E-Mix site have a trail connection made from the existing trail from the pedestrian bridge down to the trail which runs on the north side of Highway 5. And also to include the old Red-E-Mix and Taco site as, and preserve that as green space. And that also an appropriate landscaping plan and signage plan be put together as a part of that area. Tonight ! wanted to present the Park and Rec Commission's recommendations and request and get feedback from the EDA on what your thoughts are regarding these recommendations and direction of how you want to see these areas handled now and into the future. Boyle: Okay. Obviously we'd be interested on the financing, how much financial obligation's going to be involved. Gerhardt: What I would like to do is at our, probably our next meeting, either in August or September, our finance department is completing a debt analysis. Typically during our budget process every year we present an update on your debt analysis and at that time ! think we can talk about financial options that we can provide as a part of that. And ! think we'd be in a better position at that time, instead of discussing financial options. We're working on some things now that might make it feasible. But ! don't even want to say anymore until we can get that work done. Economic Development Authority - July 24, 1997 Boyle: Within the referendum that was passed before the Park and Rec, was this park in any part of that plan? The plan, part of the referendum, excuse me. Gerhardt: Neither one of the projects were included as a part of the itemized list that the voters approved. This area wasn't included. I'm always amazed how much this Park and Rec Commission's always thinking, looking out for in the community. Looking at trying to fix up whatever areas that, like they need. Staff would recommend that they put some concepts together and bring them back to the EDA for your review. Pass along whatever their recommendations would be of two or three alternatives for both the sites. Boyle: ! would sure agree on that. Gerhardt: And that's if you want to see these areas as public spaces. Boyle: We would also like to know who would be responsible for the upkeep for that to work. Gerhardt: That would be included as a part of it. Look at those issues as a part of the site plan. You know ask them to put one that would be kind of a maintenance friendly one that would be well groomed and. Boyle: Okay, thank you. Jim. Bohn: ! talked to somebody at the Park, or the Library Board and they're still interested in that property. They were told at the time we purchased the property... Gerhardt: I'm waiting for an opinion from Ron Batty. This last legislative session, ! don't know if it was this last one or the one before but they put the conditions in that you cannot use tax increment to build a library. We looked at that site several years ago of building a free standing library and.., and ! don't know if that's feasible or not. My contention would be is that we've always had it in our plan to do it. Budgeted dollars for it. ! don't know if this law supersedes what we had in previous plans before... Berquist: What about the expenditure of capital gains generated as a result ofHRA...land sale. Gerhardt: It's in the Historical Trust. Those monies are free... Berquist: ...site contiguous to Applebee's. Gerhardt: Yeah, that's the same dollars. ! call them, we call it Historical Trust dollars. Those are non tax increment dollars. There's no restrictions on those. Boyle: When you give us the update next time Todd, it'd be interesting to know how many dollars are in there. 10 Economic Development Authority - July 24, 1997 Gerhardt: Sure. ! can give you that. Mancino: ! think we're a little ahead of ourselves on the Pauly/Pony/Przymus site. ! think that, ! like getting the recommendation from the Park and Rec and knowing that they're looking.., at that site. We, about a month ago, had a work session with our Planning Director, with Kate and the City Council kind of directed conceptually in that whole area from St. Hubert' s, well actually a little east of St. Hubert's, all the way over to the Medical Arts Building. Yeah, that we'd like to look at that as a whole area, including the Pauly/Przymus site. And ! know that the planning staff is coming back with some recommendations for that whole, so ! would like to have Park and Rec and planning get together as more of an integrated package and see some of the options that both of them would like to present to us. ! know we're waiting for that as the Council and we can certainly do that.., from a planning perspective, a land use perspective and from a fiscal perspective. So ! think we need to see both together. Gerhardt: ! totally agree with.., and ! would ask Kate Aanenson, our Planning Director to make that same presentation after, at the City Council that she come to the EDA... her findings. That makes a lot of sense. That we have a vision for this area and look at every option before... consider for public land and a park. There may be some other options that may interest you. Boyle: Rather than five people hearing that two times, maybe we could combine that meeting. Gerhardt: Sure. Mason: Kate would appreciate that I'm sure. Boyle: I'm sure she would. Mancino: And if Todd wanted to participate. Let's see on the Red-E-Mix site, there was a landscaping plan done and already has been done when we developed the Highway 5 corridor study. There was a little charette done. Now ! was told that when we went out to price that, which was a grove of trees, etc., that it was very expensive. ! guess ! would like to again see what that was conceptually and how that fit in with the rest of the City and then maybe go from there. I'd like to see the original plan because there were some good plans done and the City paid for it and went through... Mason: Yeah, there were. Mancino: So that might be a good idea for us to again see that package together and not recreate something for the third time and pay consultants or whoever to do it, or waste staff time but look at it and try to pull out what was good from it. Todd Gerhardt made a statement that was not picked up by the microphone. Mason: Yes there was, I'm pretty sure. 11 Economic Development Authority - July 24, 1997 Mancino: So I need some more information. Boyle: Excellent recommendation. Berquist: So we're saying that that land has already sort of been earmarked as green space and it's effectively, ! don't even know and I'm not certain...but it's already booked for. Mancino: It was and we may want to look at that... Mason: I was going to say, as part of the Highway 5 study that was one of the plans. I don't know that I'd say it was earmarked. But that was certainly brought forth at that point. There was a trail coming into town and yeah, the grove of trees and the landscaping and what not. Berquist: Effectively it's not on the market. Gerhardt: No. Bohn: Accessibility is one of the problems. Gerhardt: property. there. Yeah. That's one of the biggest problems. The second thing is the width of the ! mean you couldn't get any smaller buildings than that Taco shop and Red-E-Mix on Berquist: How about a car dealership? Gerhardt: You probably could put a car dealership. You spent a lot of money just buying the property to get rid of 6 or 8 cement trucks and a big tower so, ! don't know... The width of the property and the right-of-way in that area makes it real difficult to put something on there. And access is going to be your other downfall. Unbelievable visibility though. Berquist: It'd be a good place for a car wash maybe. Mason: Nancy, ! think you hit everything kind of on the head there. We do have some plans that would be good to look at. Hats off to Park and Rec for going ahead with this. ! think we need to look at a bunch of options. ! mean it would be great. We have other things to take a look at but ! think they're doing their job and they're the first to come forth with it and good for them. But yeah, ! like the idea of planning getting together with them and taking a look. I'm glad you threw the library issue into the hopper, although ! don't recall they were ever guaranteed that site. That was certainly talked about as an option and maybe at the end here it looks like we may have some time, ! wouldn't mind chatting about libraries a little bit but let's get all of this stuff together and see what comes out. ! like Gary's idea of seeing if we can, if Gary and Jim don't mind, maybe coming to the Council meeting when it's presented or whatever. Gerhardt: I'll probably send the same invitation, I mean I don't know how big you want this meeting to occur but I mean, I'll send a memo back to Park and Rec Commission saying what 12 Economic Development Authority - July 24, 1997 your action is but inviting them to that same meeting as their recommendations are very good. However, we're not probably going to follow them until we can utilize our planning. Boyle: ... I'm not sure this will happen at the property, we're talking about the Pauly/Pony/ Przymus... presentable and not an eyesore. Gerhardt: Yeah. Mike wants to go back in there and fill and seed the area that is sand right now but with the weather and everything, they're picking up trees and ! think they're going to be doing it for a couple of weeks here. So we are, we do have that on our agenda and you really don't want to seed after June 15th or before August 15th. Probably try to get out there the... September to bring some dirt in there and fill that in and.., get our in front of City Hall here too. Charlie and Brad have been.., all summer. Boyle: ...Mark, go ahead. Senn: My comments pretty much mirrored Nancy's so nothing to add. Boyle: Well ! think direction's been made Todd and carry that forward for us we'd appreciate it. Gerhardt: Good comments. APPROVAL OF BILLS. Boyle: May ! have a motion and a second please. Mancino: ! move to approve the payment of bills. Mason: Second. Boyle: Do we have discussion? Berquist: ! was just going to...why are we waiting to close on that? Boyle: I'm sorry, ! didn't. Berquist: Gary Kirt, Brown's Amoco, City of Chanhassen. Gerhardt: We're waiting for estoppel agreements from the tenants. Estoppel agreements are verifications from each of the tenants saying this is my rent. These are the terms and conditions of my lease with the City and I'm current on my rent payment. It's a requirement to disclaim to the buyer that all rent is being paid and that these are the terms and conditions so you're disclosing to the buyer if there's any discrepancies with any of the tenants. That's the best way to describe what an estoppel agreement is. Berquist: In the meantime the City is continuing to... 13 Economic Development Authority - July 24, 1997 Gerhardt: Right. Berquist: Gerhardt: Berquist: Gerhardt: Berquist: Gerhardt: The estoppel agreement that you speak of... Right, I've got them from all but Brown, Toll and Advantage Coating. You've got them all but three? All but three. Well that's 50% of them. Yeah. I'm expecting, we're ready to close as soon as ! get those three and ! would hope that ! get those next week. Toll has a couple issues and we'll just disclaim that. They have some signage issues they want resolved and striping which we've scheduled for August 10th to designate some parking spaces for them as a part of that, which was called out in their lease. And of course Brown wants to make sure that all his options still exist so we're working out some of the terms and conditions the way he wants and re-verifying that those are the same terms and conditions that are in his option and lease agreement. We've been sending back and forth drafts of estoppels. And Advantage Coating, we have a little discrepancy regarding.., payment is and a phone conversation we can settle that. Berquist: ...West Village Heights for the Charlie James project? Gerhardt: That was some platting clarifications over there. We vacated some right-of-way and rededicated land and there needed to be some clarification as a part of that condemnation of that land over there. So Knutson's office had to spend some time to... Berquist: Did City Council provide final plat approval... Gerhardt: He has final site plan approval. Last conversation with him four weeks ago is that he's still having a little trouble with his big... Mancino: And that's on a year to year basis? Final plat approval? Gerhardt: He has one year from the date of approval to come back to the City. You'll see that in February. Boyle: We have a motion and a second and discussion. If there's no further discussion I'll call for the question. Mancino moved, Mason seconded to approve the bills as presented. All voted in favor and the motion carried. 14 Economic Development Authority - July 24, 1997 Boyle: Before I call for adjournment, would you like to comment? Mason: Well I just, I'm guessing I'm probably not the only one that's getting a bunch of calls and letters about what we're going to do about a library and ! say good for all those people. At some point, and maybe, because ! don't think we have any information to do it tonight but ! would love to revisit and grapple with that issue again because ! firmly believe what every one of those people are saying. Our library facilities are woefully inadequate for a city that will supposedly be 35,000 people in the year 2010. We haven't got it and ! know there's a lot of joint powers stuff with school districts and this, that and the other thing. ! would like both Council and EDA to take a look and see what we can do. Mancino: You know part of that that I'd like to see, and actually I was talking about it a little bit this afternoon is, what part of that, how does the responsibility of the City and the County because again you know 17% of our tax dollars goes to the City and 30% to the County. Mason: Absolutely. Mancino: Are we getting Chanhassen, our property taxes that we pay into the County, are we getting value for that. You know one of these things is a library. Education area as far as I'm concerned, which is very dear to me, so I'd like to have that discussion also on where those County tax dollars are going.., residents are paying, how they are benefitting it. And if that means having a meeting with the County Commissioners and finding that out, quantify it, I'd like to know. Mason: Oh yeah. When ! brought that up I'm talking about totally opening the doors here and ! think that's one of those doors that needs to be opened, and that's another discussion. You know do we want a city library? Is it a county library? Is it part of this? Part of that? Boyle: Well there's a lot of options ! think that could be presented to review. Mason: Right. Gerhardt: Chairman if! could just add. What the current arrangement is with the County for the current library is that we provide the shell space. The shell of the building for them. They provide the books and they provide the shelving and they provide the individuals to run and operate the library. The basic utilities and the wall lighting. Boyle: And when you say we you're referring to? Gerhardt: The City of Chanhassen. Mancino: The residents pay for that. And I'm just opening that up totally. 15 Economic Development Authority - July 24, 1997 Mason: I'd be real interested in seeing the budget figures on all that. How much Carver County is spending on library facilities. And particularly, ! mean are there any other Carver County libraries in this County? Gerhardt: Chaska. Berquist: Brand new one in Watertown. Mason: Okay. Okay. Well maybe that's some stuff to take a look at here. Mancino: How they're funded and. Mason: Yeah. Mancino: If Chaska has one. Gerhardt: ! can schedule for our next meeting, Mark has a lady that's been contacting him regarding a resident that is pushing hard to see a larger expansion done on the library and she has a neat map that shows all the libraries in the seven county area and has an emblem for the size of them. She's delineated them from a small square to a triangle to a large square based on size and their location. She's put a lot of work. Mason: She has. I've spent some time with her as well and ! think that would be very informative. Mancino: She's on our work session agenda. Gerhardt: But ! mean she's gone, she's called every library. Mancino: But she won't be able to answer the fiscal. Mason: Right, no. Gerhardt: No. Mason: But it might be kind of interesting to see a map and see what the libraries are and see how much money has been spent by the County on those libraries. Some demographic stuff and this, that and the other thing just to kind of get an idea of what's going on. Senn: We've got a lot of information gathering to do but ! think the other thing we have to be very careful of is ! don't think we want to put ourselves in a position of effectively, how would ! say, deferring to the County as to what services we should be providing. Our overall discussion needs to occur in terms of what services are we going to provide as a City and what services should be provided by other levels of government which is an independent decision we need to make outside of that. 16 Economic Development Authority - July 24, 1997 Boyle: If there is no further discussion on that we'll call. Senn: One question. In your Admin packet, in the back there's an assessment agreement and assessor certification. What do they pertain to? There's no way to tell on the face what they are. Gerhardt: Oh, that got thrown in there by mistake. ! grabbed the Administrative Section. That may have been underneath my desk but that is. Berquist: The movie theater. Gerhardt: The movie theater. ! was doing a closing on the movie theater last Friday so. Senn: Okay, so this is nothing for us then? Gerhardt: It's a document that the HRA approved as a part of the plan. Mason: And ! understand...isn't that happening? Gerhardt: They closed last Friday. Some demo work is to start August 1st and if everything stays on plan, hopefully you can start seeing movies by Christmas? Mason: Boy, ! bet they'd like that. Boyle: Anything going on with the Dan Dahlin, bowling alley? Gerhardt: Dan Dahlin. The County has provided him notice of the Sheriff's sale for the delinquency of taxes and that notice was issued to him on July l0th. He has 60 days to pay those back taxes or the County will take physical ownership of it. And from that date, which will be September l0th, the County will take title of the property if he hasn't paid the back taxes and he has one year to that date to come back and repurchase it back from the County. However, there was a meeting supposedly this week to tell the County that they cannot issue a Sheriff's sale onto Dan Dahlin as long as he's in bankruptcy. And ! haven't heard the results of that meeting, which makes a lot of sense to me. You can't force a guy to make payment on back taxes... (Taping of the meeting ended at this point in the discussion.) The meeting was adjourned at 7:30 p.m. Submitted by Todd Gerhardt Assistant Executive Director Prepared by Nann Opheim 17