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1979 11 15 e e e .l' " . e . ,/ MINUTES CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY NOVEMBER 15, 1979 A meeting of the Housing and Redevelopment Authority was held at Old St. Hubert's Church on November 15, 1979 at 7:30 P.M. The following Commissioners were present: Bohn, Gullickson, and Pryzmus. Assistant City Attorney, Craig Mertz, was also present. Absent was Clifford Whitehill. Mr. Mertz made a presentation reviewing the history of the Holiday Stationstores, Inc. development proposal including the Authority's actions of May 10 and 22, 1979, approving the Holiday/Happy Chef project, including approval of $15,000 development discount to be recouped by means of tax increment financing, and including the acquisition of a conservation easement on a portion of the subject property. Mr. Mertz informed the Commissioners of correspondence received from Happy Chef Systems, Inc. electing to drop out of the project. Mr. Mertz further explained that Holiday Station- stores, Inc. had advised the City Council of Holiday's desire to proceed with its portion of the project notwithstanding Happy Chef's action. Mr. Mertz explained that Holiday must obtain approval from the Authority if it wishes to proceed with the project alone and that this approval would be in the nature of an alteration of the Authority's redevelopment plan for downtown Chanhassen. Commissioner Bohn moved the adoption of the following resolution. Whereas, the Authority hereby finds that there is a "necessity", within the meaning of that term as set forth in ~462.525 (6) of Minnesota Statutes, to alter the Authority's Chanhassen Downtown Redevelopment Project plan as originally approved on November 29, 1977; said necessity being occasioned by the Authority's continuing desire to create a park-like gateway area at the intersection of Highways 5 and 101, and by the declination of Happy Chef Systems, Inc.'to participate in said project; Now Therefore Be It Resolved, that said Chanhassen Downtown Redevelopment Project plan is hereby amended as follows: a. $7,550.00 of the $15,000.00 development incentive shall be allocated to Lawrence Zamor and Holiday Stationstores, Inc., as the developers of Lot 1, Block 1, Zamor Addition, Carver County, Minnesota e e e ...-- e . b. That said development incentive shall be paid to said developers in the form of a partial purchase of said Lot 1 from said Mr. Zamor and a resale of said portion of Lot 1 to Mr. Zamor at a discount of $7,550; provided that said portion of Lot 1, upon resale, shall be subject to a conservation easement running in favor of either the Authority or the City of Chanhassen,or both. c. That the Executive Director and Chairman are hereby directed to proceed with attempting to locate a substitute "family style" restaurant developer for Lot 2, Block 1, in said Zamor Addition, who would be willing to participate in the project on substantially the same terms as had been offered to Happy Chef Systens, Inc. d. That $7,450.00 of the $15,000.00 development incentive is hereby allocated to said Lot 2 if a substitute developer is found and approved by the Authority, and e. That the Authority hereby finds that the foregoing changes do not have the effect of altering the exterior boundaries of said Downtown Redevelopment Project area, nor do they substantially alter the general land uses in said plan. Motion seconded by Pryzmus, ayes all. The Commission members then reviewed final drafts of the following documents: 1. Development Contract between the City of Chanhassen and Holiday Stationstores, Inc. (hereinafter Holiday), 2. Security Agreement between the Authority and Holiday, 3. Warranty Deed conveying the aforementioned portion of said Lot 1 to the Authority, 4. Quit Claim Deed reconveying said portion of Lot 1 to Mr. Zamor, 5. Conservation Easement Deed running from Mr. Zamor to the City ofChanhassen, and 6. Proposed promissory note running from the Authority, as debtor, to the City of Chanhassen, as creditor. Mr. Mertz indicated that the Developers were in agreement with the terms of the proposed security agreement, however, they wanted Section 5 reworded to clarify that their landscaping -2- ~ e . .. obligation was limited to the landscaping described in the developers' Development Contract with the City. 4It A Motion was made by Commissioner Bohn authorizing the Chairman and the Executive Director to execute said Security Agreement on behalf of the Authority, after Section 5 has been reworded as requested by Holiday. Motion seconded by Commissioner Pryzmus, ayes all. Commissioner Bohn moved the adoption of the following resolution: 4It Resolved, that the Authority hereby finds and determines the estimated fair market value of the land described in the aforementioned Quit Claim deed to be $9,950 based on the appraisals received into the Authority's record on May 22, 1979. Motion seconded by Commissioner Pryzmus, ayes all. lcommissioner Pryzmus moved the adoption of the following reso utlon: d h h .,. d.h h' Reso~ve , t at t e Executlve Dlrector an t e C alrman are hereby authorized (a) to take all actionpand execute all documents which they deem necessary to acquire fee title to that portion of the aforementioned Lot 1 which is more specifically described in the aforementioned Warranty deed at a price of $9,950 and, (b) to resell said portion of Lot 1 to Lawrence Zamor by Quit Calim deed at a price of $2,400 provided that: 1) Holiday and said Mr. Zamor fully execute the afore- mentioned Security Agreement with the Authority and 2) execute a development contract with the City of Chanhassen as to said Lot 1, and 3) file with the Authority the performance bond provided for in said security agreement. Motion seconded by Commissioner Bohn, ayes all. Commissioner Pryzmus moved the adoption of the following resolution: Resolved, that the Executive Director and Chairman are hereby authorized to execute on behalf of the Authority a promissory note in the amount of $7,500.00, bearing simple interest at the rate of 7% per annum, due and payable on January 1, 1983 and running in favor of the City of Chanhassen for the purpose of funding the Holiday development incentive. Motion seconded by commissioner Bohn, ayes all. Commissioner Pryzmus then informed the Commissioners of his resignation from his seat effective immediately. Meeting adjourned at 10:30 P.M. Donald Ashworth Executive Director fl~ ^ p~ oJ0~ .