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Housing and Redevel~ent
September 20, 1979
Chanhassen City Hall
Authority
.
A regular meeting of the Chanhassen Housing and Redevelopment Authority
(HRA) was called to order by acting Chairman Mike Niemeyer at 7:30
p.m. on September 20, 1979, with the following members present:
John Przymus, Jim Bohn, and Cliff Whitehill. Absent: Chairman Bill
Gullickson. Also in attendance were: Don Ashworth, City Manager;
Bill McRostie, Bloomberg Companies; Daryl Fortier and Jerry Korsunsky,
Architects; and Dennis Spall{'i, Kraus Anderson; LuAnn Wallentine,
Rick Rackl, Don McCarville, Art Kerber, John Havlik, Roman Roos -
residents and businessmen.
DEVELOPMENT PROPOSALS - DOWNTOWN REDEVELOPMENT PROJECT: The City
Manager noted that the purpose of this meet:ing was to review and
act upon development proposals received in accordance with the HRA's
"solicitation for proposals". The commission had previously reviewed
the proposals from Super Valu, to construct an approximate 50,000
to 70,000 square foot facility, and Bloomberg Companies for rennovation
and expansion of the Dinner Theatre/Hardware facility and construction
of a new home center. No action had been taken on the previous
proposals as the city had received a request from Kraus Anderson
Company to provide additional time for them to submit a proposal.
Such request was honored and, this meeting is to review the proposal
of Kraus Anderson and to determine whether any of the three proposals
or combinations thereof, meet the HRA's intent in their "solicitation
for proposals brochure".
Members of the architectural firm of Korsunsky Krank Architects and
Dennis Spalla presented the K/Aproposal for darrying out redevelopment
activities within the downtown area. In summation, Kraus Anderson,
if they are the exclusive development for the area, would carry out
all development within the downtown area as conceptually prepared
by the Housing and Redevelopment Authority. Kraus Anderson is in
agreement as to the necessity of the ring road and believes that
overall square footages of new construction and building rennovations
can be met. They would envision approximately 160,000 square feet
of construction in the first phase with a second phase encompassing
an additional 80,000 square feet. The project would
encompass at least two major tenants and would attempt to blend
local retail/office areas and specialty retail in a manner en-
visioned by the HRA (basically the eastern half of the project relating
to the dinner theatre with associated furniture, dining, specialty
renail shops, potential hotel, etc. and the westerly portion of the
project being more predominantly local retail, i.e. drug, clothing,
grocery, general retail, etc. and office). The architectural style
would be similar to that of the dinner theatre complex.
Commission members generally discussed the Kraus Anderson proposal
with representatives of Kraus Anderson. General questions/responses
included the following:
. K/A - Major stores would be in a 10,000 to 30,000 square foot
range. Hopefully, there would be three of these.
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September 20, 1979
Page 2
. K/A -
Kraus Anderson carries out all market/tenant studies and
if selected as the developer for Chanhassen, these studies
would commence to more specifically identify tenants.
e
. city Manager - Previous discussions with Kennys Super Market had
disclosed their preference to locating adjacent to
Highway 5 rather than within the ring road area.
. K/A -
Kraus Anderson believes there is no conflicts with
attempting to relocate Kennys within the community. Any
major grocery facility proposed by them would be com-
patible with stores such as Kennys.
. Bill McRostie- Bloomberg Companies believes that Kraus Anderson/
Bloomberg Companies can jolimtly accomplish the overall
redevelopment envisioned by the city.
. K/A -
If selected as the exclusive developer for the downtown
area, Kraus Anderson will attempt to work with Super
Valu as a part of the Kraus Anderson development.
. Various
Homeowners -
Our previous objection was to the ring road concept
and that they continue to object to such.
. K/A -
Jerry Korsunsky briefly described means of mitigating
potential land use problems between the residential
properties and the commercial areas.
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. K/A -
We would like to start construction as soon as possible.
Construction would require appro~imately one year
to complete. Kraus Anderson would strive to relocate
any existing businesses within the development project
(assumes compatible land use) and believes they can
live with conditions set by the HRA in arbitrating
differences. However, they cannot act as location
officers for the city.
Commission members asked if it were possible for all three firms -
Bloomberg Companies, Kraus Anderson and Super Valu, to develop more
definitive plans before the city selected a developer for this area.
The Manager stated that he did not believe this was possible.
Specifically, the costs to hire an architectural firm to carry out
design plan options, carry out market/tenant studies, and to begin
negotiations with tenants will be extremely costly for any firm.
Neither the developer nor the city would be bound to accept the plans
or type of development created during the next 60 to 90 days; however,
for more than one firm to be proceeding at this point, again, would
be extremely costly to the three firms and would be unworkable for
city staff. Representatives of Kraus Anderson and Bloomberg Companies
confirmed the manager's statements and reiterated similar points.
The manager noted that as a part of any action to accept one or more
of the proposals presented and to invite one or more of these developers
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September 20, 1979
Page 3
to proceed, that the HRA should also request that the city council
extend the building moratorium during the following 60 to 90 day
period.
Commissioner Whitehill moved that the Commission consider information
presented this evening as well as review previously submitted information
and establish a special meeting date of September 27, 1979, to
finalize the selection process for a developer(s) within the downtown
area. Seconded by Commissioner Niemeyer. Ayes - All.
Commissioner Whitehill moved that the Housing and Redevelopment Authority
recommend that the city council extend the building moratorium for a
60 to .90 day period based upon the above information. Seconded by
Commissioner Przymus. Ayes - all.
Adjournment: 10:30 p.m.
Don Ashworth, City Manager