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1978 06 29 - - e , Housing and Redevelopment Authority June 29, 1978 9:00 p.m. Chanhassen City Hall The regular meeting of the Chanhassen HRA was called to order at 8:00 p.m. on June 29, 1978, at the Chanhassen City Hall. The following members were present: Chairman Herb Bloomberg, Commission Members Tom Klingelhutz, Mike Niemeyer and John Pryzmus. Also present was Don Ashworth. Bill Gullickson was absent. Accept Resignation - Herb Bloomberg Herb Bloomberg noted that he presently owns the property being considered by Roman Roos for construction of two professional buildings on West 78th Street. As such, he believes he must resign from the HRA prior to the BRA acting on this item. A written resignation will be presented on or before the next meeting for official action. Roman Roos'Development Proposal - West 78th street Roman Roos has presented and received planning commission concept approval for construction of two profes's'i.onal buildings on the Northeast corner of the MTS property. Salient points of considering this development proposal in the downtown area include: 1). Construction of this type of use on the MTS property does not appear of a similar character to other proposals under construction for this area, Le. MTS's engineering and laboratory facilities, LYman Lumber's manufacturing and lumber distribution, the Press' commercial printing facility, and other uses likely to occur on the three larger parcels remaining in the Gabbert and Beck Tract in the Donreed properties. 2). Construction of this type of use on the MTS property would be in direct conflict with the attempts of the BRA to promote and attract uses of land within the downtown area compatible with the concept plan and development criteria for the tax increment district. 3). Sites exist within the tax increment district which could be considered for this type of development and which would not conflict with or hinder the ability of the HRA to complete a final concept plan for this area. 4). In comparison to building proposals necessary to complete the core area plan, the proposed professional building would be minor. However, asatest o;E. the HRA' s ability to promote and attract building uses compatible with development criteria in the concept plan, such development may be desirable in demonstrating capabilities of the HRA as well as allowing the BRA the necessary experience in this type of promotional activity on a smaller scale. 5). Should the proposed development be finally approved and constructed in an adjoining city, no tax benefits would accrue to citizens of the City. Should the development be approved and constructed on the MTS property (such being in Hennepin County, Eden prairie School District, and subject to fiscal disparaties) the net taxes estimated Page 2 - to be returned to the City, of a total tax payment of $20,000, would be approximately $1,200. By comparison, should the development be approved within the core area such would not be subject to fiscal disparities and the full $20,000 tax payment per year over the next 30-year period could be used to: a). Provide an initial incentive to the developer to construct within the downtown area (perhaps l~ years of the tax payment); b). Used to help in the redevelopment of the entire core area (perhaps an additional 3 to 5 year period), and; c). After completion of the downtown project, be distributed to all local units of government in this area, Chanhassen school district, Carver County and the City of Chanhassen. 6). The amount of subsidy or the value of an incentive, i.e. write-ddwn of land cost or improvements completed by the City is left to the discretion of the City. However, as noted during initial discussions between the HRA and BRW, a general policy should be con- sidered to insure all developments are treated equally, i.e. typically an HRA may consider the value of land in adjoining areas and purchase underutilized property or purchase and clear property reselling such at a comparable value to land in outlying areas or in other communities. e After considerable discussion of values of property in the downtown area and value of the MTS parcel, the potential form of assistance which should be considered by the HRA and the concept plan and criteria for the downtown area in comparison to the Roman Roos proposal; Tom Klingelhutz moved: 1). That the proposed professional buildings on West 78th Street be found in conformance with the concept plan and development critiera for the downtown area. Additionally, the proposal has frontage on existing West 78th Street and will not hinder the City's ability to construct a loop road system - should such become a part of the final plan. As such, a variance to the building moratorium should be granted. 2). That the HRA recommends that the City Council approve site improvements or purchase and resell the property at a lower price - such site improvement costs/or other incentive not to exceed l~ times the annual estimated taxes of the property when improvement. Mike Niemeyer seconded the motion. Ayes - all. not vote or participate in the discussion). (Herb Bloomberg did Status Report - Redevelopment Brochure e Format, photographs and maps revised to date were reviewed. The commission authorized the Manager to contract art work for the one remaining map and to proceed with reproducing the final draft. Adjournment - 11:00 p.m.