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1979 05 22 . ,. . e e - e . MINUTES CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY MAY 22, 1979 A special meeting of the Housing and Redevelopment Authority was called to order at 7;35 P.M. by Chairman Gullickson. The following members were present: Bill Gullickson, Mike Niemeyer, and John Pryzmus. Also present was Assistant City Attorney Craig Mertz. PUBLIC HEARING DISPOSAL OF HRA PROPERTY HAPPY CHEF/HOLIDAY DEVELOPMENT PROPOSAL Chairman Gullickson called the public hearing to order at 7;40 P.M. with the following interested persons present: Larry Zamor, Jerry Jenson, Representing Holidy Station- stores, Inc.. The Assistant City Attorney explained that the proposal in question consisted of the construction of a restaurant building and a retail store building on Lots 1 and 2, Block 2, Frontier Development Park (which Lots are to be replatted as Lots 1, 2, 3, Block 1, Zamor Addition). State law allows an HRA to offer incentives for the purpose of channeling develop- ment activities into those areas of the city identified for redevelopment. As a part of the subject proposal, the Authority would acquire a portion of the subject property and resell it to the developer at a discount of $15,000. The Authority would also obtain a perpetual open space restriction or conservation easement over the easterly and southerly margin of the site. Commissioner Whitehill entered the meeting at 7:50 P.M. The Chairman received into the hearing record a copy of the published notice of public hearing, an appraisal report dated April 26, 1979, prepared by Dixon and Associates, appraisers, of Ale~ria, Minnesota; an appraisal report dated May 1, 1979, prepared by Klinglehutz-Kravens, Inc.~ realtors, of Minneapolis, and a copy of the proposed option agreement between the Authority and LarryZamor, owner of the subject property. The Assistant City Attorney stated that the option agreement would allow the Authority, upon exercise of the option agreement, to gain control of the project site, and then resell the property to a developer at a $15,000 discount. e . ~ e 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 subject property; and b. to approve or disapprove the partial public acquisition of the subject property; and c. to approve or disapprove the resale of the subject property to a developer at a $15,000 discount. Thereupon, the Chairman opened the public hearing to comment from the floor. Mr. Zamor and Mr. Jensen expressed their interest in executing the project. At 9:00 P.M., Chairman made a final call for additional public comment; and hearing none, a motion was made by Commissioner Pryzmus to close the public hearing. Motion seconded by Commissioner Niemeyer, ayes all. e Resolution No. Commissioner Whitehill moved the adoption of formal resolution amending the Housing and Redevelo- ment Plan for Downtown Chanhassen, so as to provide for the public acquisition of a conservation easement area consisting of approximately $12,000 square feet of Lots 1 and 2, Block 2, Frontier Development Park, Carver County, Minnesota, consisting of said lots for the purpose of creating a landscaped and aesthetically pleasing open space gateway to the downtown district. Resolutionsaxmilled by Commissioner Niemeyer. The following voted in favor: Commissioners Gullickson, Pryzmus, Whitehill and Niemeyer. Resolution No. Commissioner Pryzmus moved the adoption of a resolution that the Authority finds the estimated fair market value of said conservation easement area to be not less than $19,900, and directing the Chairman to take all steps necessary to acquire said conservation easement area at a price of not to exceed $19,900 or $9,950 per lot. Resolution seconded by Commissioner Whitehill. The following voted in favor: Commissioners Gullickson, Pryzmus, Whitehill, and Niemeyer. Motion carried. Commissioner Whitehill moved to direct the Chairman and the Executive Director to investigate possible sources of borrowing of the $15,000 development discount for the Holidayj Happy Chef project, and to report back to the full commission on the best available terms. Motion seconded by Commissioner Niemeyer, ayes all. e Then the Commissioners proceeded to review the landscaping plan for the Holiday proposal. Mr. Jensen stated that his company wanted to delete any tall trees or bushes as described in the landscaping plan reviewed by the Authority at its May 10, 1979 meeting. Mr. Jensen stated that his company was interested in limiting plantings to Hughes or Andorra junipers. -2- -" 114' .. . . e After discussion the consensus of the Commissioners was that they were unwilling to amend the landscaping plan as approved on May 10, 1979, however Mr. Jensen was invited to submit a specific landscaping amendment proposal for presentation at the next meeting of the Authority; however, any such proposal must be in writing, must be detailed, and must be substantially similar to the previously approved landscaping plan. Commissioner Niemeyer moved that the Authority would not entertain any such amendment request unless it was a joint submission of both Mr. Zamor and Holiday Stationstores, Inc~ Motion seconded by Commissioner prysmus, ayes all. Commissioner Niemeyer moved that the Authority schedule a special meeting for June 6, 1979 for purpose of further reviewing the Holiday landscaping matter and the financing alternatives as to funding the $15,000 development discount~ Seconded by Commissioner Pryzmus, ayes all. The Commissioners then directed the Assistant City Attorney to write to John Lee, attorney for Mr. Zamor, reminding Mr. Zamor that any development agreement between the Authority and Mr. Zamor would contain the provision for the posting of cash, or other securities, sufficient to guarantee full execution of the Holiday development proposal, and completion of the retail building, and completion of the landscaping. e The Commissioners then proceeded to interview Mr. T. Schoenekr and Mr. T. Droegemueller for appointment to the vacancy created by the resignation of Commissioner Klinglehutz. No decision on the vacancy was reached,howeve4 it was the consensus of opinion that further interviews should be held on June 6, 1979. Meeting Adjourned at 9:30 P.M. ill,~ 0, .~ .1 ..r\. Ct--) . ~U~~.~'k Donald Ashworth Executive Director -