1979 05 22
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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.
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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.
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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.
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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.
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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.
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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.
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Donald Ashworth
Executive Director
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