1979 03 08
",-.'- .... .,.
..
..
.
.
t
:1<
----.
-.
HRA rough minutes ..,,~.-
3/13/79 CMM
~_.~....
e
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
MARCH a, 1979
CITY HALL
A special meeting of the Housing and Redevelopment Authority was
called to ordei at 8:00 P.M. by Chairman Gullickson. The following
members were present: Bill Gullickson, Mike Niemeyer, John Pryzmus,
and Clifford Whitehill. Also present were City Manager Don Ashowrth
and Assistant City Attorney Craig Mertz.
PUBLIC HEARING
DISPOSAL OF HRA PROPERTY
ROME PROPERTIES DEVELOPMENT PROPOSAL
Commissioner Gullickson called the public hearing to order at
8:03 P.M. with the following interested persons present:
e
The Assistant City Attorney explained the Rome Properties Development
proposal in general, stating that the development consisted of the
construction of two professional office buildings on a tract of land
presently owned by Bloomberg Companies but under option to the City of
Chanhassen. State law allows a housing and redevelopment authority to
offer incentives for the.purpose of channelling development activities
into those areas of the municipality identified for redevelopingment.
As a part of the proposed Rome Properties Development, the Chanhassen
HRA would acquire the necessary buildingsite at a price of $64,837.50
and would re-sell the property to Rome Properties at a price of
$34,837.50, in other words, a discount of $30,000.
/
./
e
The Assistant City Attorney entered into the hearing record a copy of
the published notice of public hearing, an appraisal report dated
February 21, 1979 prepared by Dixon and Associates, Appraisers, of
Alexandria, Minnesota, and an appraisal report dated February 21,
1979, prepared by Klingelhutz-Kravens, Inc., realtors, of Minneapolis,
Minnesota, a copy of the proposed development contract between the
City of Chanhassen and Roman Roos, d/b/a Rome Properties, a copy of
an option agreement dated January 5, 1979, between Bloomberg Companies,
Incorporated and the City of Chanhassen, and a copy of the proposed
earnest money contract between the Chanhassen Housing and Redevelopment
Authority and Roman Roos, d/b/a Rome Properties.
e
-
e
,
,.
.
.
,.
The Assistant City Attorney stated that the option agreement would
allow the HRA, upon exercise of the option agreement, to gain control
of the project site and that.. the purpose of the development
contract was to provide financial security~~the City & to the
HRA for the purpose of guaranteeing the actual completion of the HHW two
subject professional buildings.
The Assistant City Attorney then explained that after the close of the
public hearing, the Commissioners should take action as follows:
a.
to place an estimated market value on the Rome Properties
Development site;
to approve or disapprove the option agreement as entered
in the public hearing record; and
to approve or disapprove the earnest money contract as
entered in the public hearing record.
b.
c.
Thereupon, Chairman Gullickson opened the public hearing to comment
from the floor. The Assistant City Attorney and the City Manager
responded to public questions concerning the history of the Rome
Properties Development proposal, the manner in which the HRA would
recoup the $30,000 development incentive, the mechanics of the tax
increment statute, the impact of the fiscal disparities law, the
availability of development incentives to other developers, and the
history of the downtown redevelopment plan. At 8:40 P.M., Chairman
Gullickson made a final call for additional public comment, and
hearing none, a motion was made by Commissioner Niemeyer to close the
public hearing. Motion seconded by Commissioner Whitehill. The
followingvoted infavor: Commissioners Gullickson, Pryzmus, Whitehill
and Niemeyer. No negative votes. Motion carried. Hearing closed
at 8:40 P.M.
Resolution No. Commissioner Whitehill moved a resolution
that the Chanhassen Housing & Redevelopment finds the estimated fair
market value of the Rome properties development tract, as descirbed
in the development contract entered in the public hearing record, to
be not less than $64,837.50. Resolution seconded by Commissioner Niemeyer.
The following voted in favor: Commissioners Gullickson, Pryzmus,
Niemeyer and Whitehill. No negative votes. Motion carried.
Resolution No. Commissioner Whitehill moved a resolution
....Pll!i~..iA!J Ll.,- upCluH Cl':1...,-,,~MiiWilt with Bloomberg Properties, Incorporated,
as entered in the public hearing record aKi ill... '-'- Lil.! 'lsR~ @Jll.....etLi.ili
...:._....'- L....... of the Chanhassen HRA l:e L~h..... 1111 8il8~e9 ht:e~l5l1'JaYl te iUMl""''''' i!;:.Q
said option and acquire the Rome Properties development site pursuant
to the terms of said option agreement. Resolution seconded by
CommissionerPryzmus. The following voted in favor: Commissioners
Gullickson, Pryzmus, Neimeyer and Whitehill. No negative votes. Motion
carried.
Resolution NO. Commissioner Niemeyer moved a resolution 'Q~~!d-:-"i~q
the proposed ~&"'H""..,L UlVll""'y ~ UllL...aK between Roman Roos, d/b/a Rome
Properties, and the Chanhassen Housin9 & Redevelopment Authority, as
entered in the public hearing record)!, ,-..3..3i...,il.!l el..:....:..Yfi.lH, 8\11liGJ{son
~ -UjTI:lL"" gala.~a.Lll,-...,L UlVll'-.l 8~];;l"'~Ct on behalf of the Chanhassen
HRA, contingent, however, upon (~)~~9~~s~essful negotiation of ~ sho~t
term swing loan in the amount o~~64,B~7~'~d-, for the purpose of flnanclng
._"-,;",~r~'~.'.,,
~
e
e
e
"'. 1-
/ '..
.
.
the option price, and further contingent upon proper execution of the
development contract by the developer, and further contingent upon the
developer tendering a proper performance bond in an amount sufficient
to guarantee the co~s~gi~~D~~~~f all improvements upon the
subject property and~'t~guarantee the ultimaterecovery of the
$30,000 development incentive, together with $7,000 in interest costs
on the swing loan. The following voted in favor: Commissioners Gullickson,
Niemeyer, Pryzmus and Whitehill. No negative votes. Motion carried.
..,,,........--~,~-c:,,'