1979 05 14
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CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
MAY 14, 1979
PUBLIC HEARING SPECIAL MEETING
Due to the lack of a quorum this public hearing and special
meeting scheduled for this date was continued to 7:30 P.M., May
22, 1979, at Chanhassen City Hall.
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Don Ashworth
Executive Director
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MINUTES OF
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
A special meeting of the Housing and Redevelopment Authority
of Chanhassen, Minnesota was held at the Old Saint Huberts Church
Rectory on the 22nd day of May, 1979. The following members were
present, Mike Niemeyer, John Przymus, and Chairman Bill Gullickson.
Commissioner Whitehill was absent. Guests present at the meeting
included Larry Zamor and Jerome A. Jensen. Commissioner Gullickson
called the meeting to order at 7:40 p.m.
CONTINUATION OF MAY 14, 1979, PUBLIC HEARING
PROPOSED SALE OF HOUSING AND REDEVELOPMENT AUTHORITY IN
FRONTIER DEVELOPl1ENT PART HOLIDAY/HAPPY CHEF DEVELOPMENT PROPOSAL
This public hearing is a continuation of the public hearing
of the Housing and Redevelopment Authority scheduled for May 14, 1979.
The May 14, 1979, public hearing was continued to this date because of
lack of a quorum. Assistant City Attorney, Craig Mertz advised the
chairman that while the call for the meeting had listed the meeting
place as being Chanhassen City Hall, a notice of the change of meeting
place to Old Saint Huberts Rectory had been posted earlier in the
evening on the door of the City Hall.
~ Commissioner Gullickson called the public hearing to order
at 7:45 p.m. with the following interested persons present, Larry
Zamor, Jerome A. Jensen and assistant City Attorney, Craig Mertz.
The Assistant City Attorney read the official notice as
published in the Carver County Herald and explained that the purpose
of the hearing was to consider the terms and conditions of the proposed
sale of a portion of Lots 1 and 2, Block 2, Frontier Development
Park to Lawrence N. Zamor, subject however, to a "no development"
restriction across the easterly 12,000 square feet of the property.
The Assistant City Attorney explained that mechanically the proposal
consists of the purchase of the subject property from Lawrence N. Zamor
for $19,800.00 and the resale of the same property to said Mr. Zamor
subject to "no-development'! restrictions for a price of $4,800.00
and that in substance the transaction constitutes a write down of
the $15,000.00 cost of transforming development property into open
space property, which would then form the open space gateway area
identified in the Housing and Redevelopment Authority's Concept Plan
for downtown Chanhassen.
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The Assistant City Attorney entered into the hearing record
a copy of the published notice of the public hearing, an appraisal
report dated April 26, 1979, prepared by Dixon and Associates,
Appraisers of Alexandria, Minnesota, and an appraisal report dated
May 1, 1979, prepared by Klinglehutz-Craven, Inc., realtors of
Minneapolis, Minnesota, a copy of the option agreement dated May 9,
1979, between Lawrence N. Zamor and the Authority and a copy of a
letter agreement dated May 9, 1979, Lawrence N. Zamor and the Authority,
being the parties to said letter agreement.
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The assistant City Attorney then explained that after the
close of the public hearing, the Commissioner should take action as
follows:
a) To place an extimated market value on the subject
property;
b) To approve or disapprove option agreement as entered in
the public hearing record;
c) to approve or disapprove the terms of the proposed resale
of the subject property; and
d) to make appropriate amendments to the Housing and
Redevelopment Authority plan for the downtown area.
Commissioner Whitehill entered the meeting at 7:50 p.m..
Thereupon, Chairman Gullickson opened the public hearing to
comment from the floor. The Assistant City Attorney responded to
questions from the Commissioner and from the public concerning the
history of the Holiday Happy Chef proposal for the development of
Lots 1 and 2, Block 2, Frontier Development Park and concerning the
manner in which the Authority would recoup the $15,000.00 development
incentive.
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Commissioner Przymus moved to close the public hearing. Motion
seconded by Commissioner Niemeyer. The following voted in favor,
Commissioners Niemeyer, Gullickson, Przymus, and Whitehill. No
negative votes. Hearing closed at 8:30 p.m.
HAPPY CHEF/HOLIDAY DEVELOPMENT PROPOSAL:
AMENDMENT OF HRA PLAN
Commissioner Whitehill moved the adoption of a resolution
(a) amending the HRA Plan for Downtown Chanhassen to provide for the
public acquisition by the Authority of that portion of Lots 1 and 2,
Block 2, Frontier Development Park, Carver County, Minnesota, more
particularly described on Exhibit "A" attached hereto and made a part
hereof; and (b) finding the estimated fair market value of said
property to be not less than $19,800; and (c) providing for the resale
of said property to Lawrence N. Zamor at a discount of $15,000
contingent upon said Lawrence N. Zamor, Holiday Stationstores, Inc., and
Happy Chef Systems, Inc. entering into a development contract with the
City of Chanhassen providing for the development of Lots 1 and 2,
Block 2, Frontier Development Park, Carver County, Minnesota, in accor-
dance with the development plans approved by the Chanhassen City Council
on May 14, 1979 as planning cases No. P567 and P568, said development
contract to specifically provide for a "no development" green space of
approximately 12,000 square feet along the easterly boundary of the
subject property; and further contingent upon Lawrence N. Zamor, Holiday
Stationstores, Inc., and Happy Chef Systems, Inc. entering into a
security agreement with the Authority so as to guarantee execution of
said development plans. Motion seconded by Commissioner Niemeyer.
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The following voted in favor: Commissioners Whitehill, Przymus,
e Gullickson and Niemeyer. No negative votes. Motion carried.
Commissioner Przymus moved the adoption of a resolution
directing the Executive Director of the Authority to take all steps
reasonably necessary to exercise, on behalf of the Authority, the May
9, 1979 option obtained by the Assistant City Attorney and to re-sell
the subject property to Lawrence N. Zamor for $4,800 subject to a "no
development" restriction. Motion seconded by Commissioner Whitehill.
The following voted in favor: Commissioners Whitehill, Przymus,
Gullickson, and Niemeyer. No negative votes. Motion carried.
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Commissioner Niemeyer moved that Chairman Gullickson and
Executive Director Ashworth investigate the financing alternatives
available to fund the $15,000 development discount, including contacting
the Chanhassen State Bank regarding a short-term loan and upon completion
of the investigation, that he report back to the Authority with a
specific financing recommendation. Motion seconded by Commissioner
Niemeyer. The following voted in favor: Commissioners Whitehill,
Niemeyer, Przymus, and Gullickson. No negative votes. Motion adopted.
Jerome Jensen of Holiday Stationstores asked for and received
permission to address the Commissioners. Mr. Jensen stated that his
firm wished to disavow the landscaping plan submitted by Mr. Zamor to
the HRA on May 10, 1979 and to the Chanhassen City Council on May 14,
1979. Mr. Jensen stated that his firm would only consent to the planting
of low-lying junipers. The Assistant City Attorney explained that Mr.
Jensen was in effect asking for an amendment of the Authority's action
of May 10, 1979, approving the landscaping plan presented on that date.
Chairman Gullickson polled the commissioners and none was willing to make
the necessary motion to amend the May 10, 1979 landscape plan approval.
The Chairman invited Mr. Jensen to submit a specific landscape plan
amendment for presentation at the next scheduled Authority meeting, provided
that any such proposed amendment must be detailed, must be substantially
similar to the landscape plan approved on May 10, 1979, and must be
jointly submitted by both Holiday Stationstores, Inc. and Happy Chef
Systems, Inc. Commissioner Niemeyer moved the adoption of a motion
that the Authority would not entertain a landscape plan amendment
proposal except upon the terms described by the Chairman. Motion
seconded by Commissioner Przymus. The following voted in favor:
Commissioners Gullickson, Przymus, Whitehill and Niemeyer. No negative
votes. Motion adopted.
Commissioner Niemeyer moved that the HRA hold a special meeting
on June 6, 1979 at 7:30 p.m. at City Hall for the purpose of considering
any landscape plan amendment proposal which might be submitted by
the developers during the interim and for the further purpose of
determining the specific method of financing to be used to fund the
development discount being utilized in connection with the HOliday/Happy
Chef development. Motion seconded by Commissioner Przymus. The
following voted in favor: Commissioners Przymus, Niemeyer, Gullickson
and Whitehill. No negative votes. Motion adopted.
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The Commissioners directed the Assistant City Attorney to
write a letter to Mr. Zamor's attorney, reminding him that the avail-
ability of a $15,000 development incentive would be contingent upon
the developers entering into a development contract which would
provide, among other things, for the posting of securities sufficient
to guarantee the execution of the development plan, the construction
of the buildings entailed in said plan, and the full execution of the
landscaping plan.
INTERVIEW OF CANDIDATES FOR APPOINTMENT
TO VACANT HRA COMMISSIONER SEAT
The Commissioners then interviewed applicants T. Schoenecker
and Thomas Droegemueller. No decision was reached as ~o which candidate
would be recommended to the Chanhassen Mayor for appointment. The
consensus of the Commissioners was that additional interviews would be
held on June 6, 1979 and that a recommended candidate would be selected
at that time.
Commissioner Niemeyer moved to adjourn. Motion seconded by
Commissioner Przymus. The following voted in favor: Commissioners
Przymus, Niemeyer, Gullickson, and Whitehill. Meeting adjourned at
9:30 P.M.
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