1979 11 29
Housing and Redeve~ment Authority
November 29, 1979
Chanhassen City Hall, 7:30 p.m.
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A regular meeting of the Chanhassen Housing and Redevelopment Authority
(HRA) was called to order by Chairman Bill Gullickson with the
following members present: Mike N~emeyer, Jim Bohn, and Bill Gullickson.
Also present were: City Manager, Don Ashworth; Jerry Carlson, Instant
Web; Harry Pauly, Pauly's Inc.; Bernard Schneider, State Bank of
Chanhassen; Pat Swenson, Planning Commission; Al Klingelhutz; Roman
Roos, Planning Commission. Commissioners absent were: Commissioner
Cliff Whitehill.
CONTRACT FOR SERVICES - BRW: The City Manager reviewed the professional
services agreement between the HRA and Bather, Ringrose and Wolsfeld
(BRW). In essence, three functional areas must be completed by the
HRA if the downtown redevelopment project is to become a reality and
if the HRA is to encourage development within the business park:
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1). Official Plan Document: The 1979 Legislature required
cities with new or existing districts to meet several
new requirements. The plan document will include various
maps, legal findings, base valuations, properties potentially
to be purchased and/or businesses to be relocated; etc.
Additionally, the main thrust of the document will be
the specific delineation of all potential public costs
including land, building, business acquisitions; necessary
public construction including streets, ring road, public
areas; all other potential costs including legal, consultive,
bonding, etci and any other public expenses such as the
proposed park area adjoining old St. Huberts Church/Old
Village Hall and/or a portion of the costs associated with
the new city hall/public works facility. These costs will
be made in comparison to potential revenues from the resale
of properties and/or buildings, tax increments generated
from new construction, etc.
2). Developers Agreement: The law will require that a developers
agreement be established. The agreemenuwould specify
work to be completed by the city and developers (Bloomberg/
Kraus Anderson), the proposed phasing of public expenditures/
private construction; remendies upon default by either parties;
agreement to specific plans and specifications; etc.
3). Redevelopment Plan: This section includes the
specific site plan and specifications for the redevelopment
project. As the plans are being proposed by Kraus Anderson/
Bloomberg Companies, the city will be required to determine
the effects of these plans upon other developments in the
community; review density and land use issues, i.e. parking,
access and road construction, architectural style, etc.;
assure that the two developments are compatible and enhance
public areas; etc.
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The City Manager noted that he could not over emphasize the necessity
to insure that the city had the best professional advice in completing
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the three work objectives noted above. The plan document itself will
not only guide the development of the city during the redevelopment
program, but will also act as the primary legal document for the city
in any potential suits as to impr.opriety of proceedings by the city.
The financial analysis section of this plan will determine whether
the city should proceed with the project or not and, as such, the
city must be assured that "mistakes" or "forgots" do not arise in
the middle of the project after it is too late for the city to turn
back. Other work items are equally important. For example, city
staff does not question the integrity of either the Bloomberg Companies
or Kraus Anderson. However, it will be necessary for the city to
review the development plans proposed by these two firms to insure that
community goals are incorporated into the plan land to assure that the
legal agreements are mutually workable.
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Given BRW's previous experience with the city and their national
recognition in these types of projects, staff is recommending that the
contract proposed to the HRA be approved. The phasing in the
contract assures that' the three work objectives, noted earlier by the
Manager, are completed in a timely and orderly manner. The first
phase is anticipated to cost $10,000 to $15,000.
commission members generally discussed the contract with the
City Manager and Peter Jarvis representing BRW. Comments of
commission members and answers to such are shown below:
Niemeyer - Does a conflict of interest exist or potentially
exist between BRW and Kraus Anderson or other
developers within the potential project?
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Jarvis - None exist. Before any architectural contract would be
signed with any developer carrying out work in
Chanhassen, the city would be notified of such.
Gullickson - Will BRW help to inform the business community
of the project?
Jarvis - No, not under the contract presented. The city should
carry out informal contacts. Bowever, the
City should hire a ~rofessionalrelocation firm.
The importance
of notifying the property owner of his full rights
under relocation law is important, even during initial
discussions. These can become important if mutual
agreement cannot be reached and condemnation is
necessary.
Bohn - How long will it take to complete Phase I?
Jarvis - 60 to 75 calendar days.
Bohn - What timing is associated with other phases?
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Jarvis - Phase I brings everything current and the State law
in regards to the plan including analysis of the ability
of the city to agree with the developers. Phase II
includes all work associated with preparation for
construction and would involve 5 to 6 months. Phase III
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represents final drawings, plans, and specifications.
Phase IV represents the actual construction.
Corrunissioner Niemeyer moved that the contract presented by BRW and
as recommended by the city manager be approved. Seconded by Corrunissioner
Bohn. Ayes - All.
REVIEW CURRENT DEVELOPMENT PROPOSALS: Bud Andrus was present to
discuss development activity within the business park. HRA members
generally requested that they be kept informed as development activity
occurred and that potential developers be notified of the HRA's
concern and potential help available to them through the HRA.
Mr. Bill Bury and Bill Clauson were present to discuss the potential
of Dyna Graphics constructing within the business park. Basically,
their development would include two phases of approximately 15,000
square feet. They are specifically interested in the ability of the
city to help in defraying special assessment costs for the property
and in obtaining industrial revenue bond financing. The city manager
noted that before incentives could be considered, that public
hearings by the city/HRA would be required. After discussion, the
commission encouraged the developers to prepare a letter, with help
from the city manager's office, so that they may formally respond
to the request. The manager noted that industrial revenue bond
requests must be submitted to the city council.
DEVELOP1~NT CONTRACT AMENDMENT, DELETE HAPPY CHEF WITH CANNONBALL
RESTAURANT, WEST 79TH STREET: Bob Waibel was present to discuss the
proposed site plan in comparison to the previously approved Happy
Chef plan. After discussion, corrunissioner Bohn moved that the HRA
approve the contract amendment to substitute Cannonball Restaurant
in place of the previously approved Happy Chef as long as the planting
plan previously approved was incorporated into the current proposal.
Motion seconded by Commissioner N~emeyer. Ayes - All.
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GRANT APPLICATION, PEDESTRIAN WALKWAY CULVERT, NEW COUNTY 17: The
city manager noted that this project should be considered at this time
to insure work could be completed as a part of the new County 17
construction. In addition to saving monies via including this in
original construction, the manager additionally noted that grants are
currently available for these types of projects. This item is being
presented as the City portion of the project may be considered to be
paid through the tax increment district (this cannot Officially be
designated until the "Plan" has been completed). Although Commissioners
could formally act on this at the time of any such plan adoption, if
there were disagreement with the project, such should be stated at this
point. No disagreement was noted by commission members.
PULBIC WORKS FACILITY, CHANHASSEN LAKES BUSINESS PARK, LAND ACQUISITION:
This was an information item to inform the commission of the city's
negotiations for acquisition of land within the park for the new public
works facility.
MINUTES: corrunissioner Niemeyer moved the adoption of the minutes of
September 17, 1979. Corrunissioner Bohn seconded the motion. Ayes - All.
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Commission Niemeyer moved that the minutes of September 27, 1979, be
approved as presented. Seconded by commissioner Bohn. Ayes - All.
Aqjournment: 11:15 p.m.
Don Ashworth, City Manager
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