1980 06 05
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Minutes
Housing and Redevelopment Authority
June 5, 1980
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The June 5, 1980, Chanhassen Housing and Redevelopment Authority
(HRA) meeting was called to order at 8:20 p.m. by Chairman Bill
Gullickson. The following members were present: Commissioners
Gullickson, Bohn and Russell. Also present were Don Ashworth
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Clty Manager; and Craig Mertz, Assistant City Attorney. Absent
were Commissioners Whitehill and Niemeyer.
City Council Action on Downtown Redevelopment: Chairman Gullickson
reviewed the City Council action taken on the Downtown Redevelopment
Plan. No action was taken by the HRA, however, they noted conditions
and reviewed the report.
Site Plan and Tax Increment Proposals:
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Fluoroware: The City Manager reviewed the history of the
tax increment district. Basically, the district was created as a
result of recognizing the deteriorating condition of the downtown
area and the ability of tax increment financing to provide a means
by which parcels could be accumulated, cleared, and resold for re-
development closely paralleling planning concepts for a downtown
area. Expansion of the district to include the business park area,
south of Highway 5, occurred as a recognition of the association
between planned business needs/opportunities in the community and
recognizing that several businesses within the downtown area would
require relocation to more appropriately zoned properties. In
addition, the business park could not reasonably become a reality
without the extension of public facilities, given the multiple
ownerships of properties within the area and in recognition of the
HRA's ability to carryout such public improvements as a part of the
tax increment district. To assure that the business park did become
a reality and that costs of public improvements are paid, an original
concept of having the HRA pay public improvement costs had been con-
sidered. This philosophy would be carried out on a business-by-
business basis to assure that such incentives were being provided
to businesses meeting City Standards. The accomplishment of these
goals is now in jeopardy as, in the opinion of the Assistant City
Attorney, the City did not properly have the Housing and Redevelopment
Authority be the contracting agency for such public improvements and as ~
such was not completed as an HRA project, that the City may not be
able to make incentives to new businesses via reduction in assessment.
The Assistant City Attorney reviewed problems which may occur as a
result of the Housing and Redevelopment Authority attempting to provide
incentives within the business park. Major points presented included:
1). Direct Cash Dispursements - Such does not appear to be
within the legal limits of the HRA.
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2). Purchase and Resale Write Down - Again, without the HRA
being the contracting authority for public improvements,
the HRA would be required to show that there is work
being completed on the site or that the City was receiving
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3) .
4) .
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some special conditions as a result of the proposed
purchase and resale, i.e. the Holiday station proposal
represented a restriction of land use and landscaping
of an area which could have been otherwise developed.
Resale Through a Specific Percentage of Building Value -
Similar to 2)., above, this form of incentive would require
findings of a definitive public purpose being served by
providing this form of incentive. Similar to 1)., above,
the use of this technique simply to lower the cost of
building could not be found to be either allowed or
disallowed under statute. Tentative discussions with bond
counsel raise questions as to whether future bond sales
of the HRA would be jeopardized if this form of incentive
were considered.
Under Assessing Project 78-3 - This option would be legal
under the statute, but has the disadvantage of reducing
all assessments by a specified amount without specific
knowledge as to when, or if, parcels would develop.
Another disadvantage would be in the fact that the HRA/
City Council would then provide equal benefit
to all properties, regardless of whether the development
proposal met City desires within the business park.
The Manager presented a "Hypothetical Tax Impact Analysis" and
reviewed such.
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DynaGraphics: No action was taken. DynaGraphics are withdrawing
their request for a period of one to two months.
A motion was made by Tim Russell and seconded by Jim Bohn to approve
the purchase of the Fluoroware lot site with the resale back to
Fluoroware at the same amount with the HRA becoming responsible for
public improvement assessments, contingent upon the City Attorney
receiving a legal opinion from Bond Counsel that such would be found
to be within the authority of the HRA (Question to be responded
to by the City's Bond approving attorney). Vote - All Aye. Motion
carried.
Minutes: Chairman Gullickson requested a review of the May 20, 1980,
minutes. As no additions or corrections were to be made, Commissioner
Russell moved and Commissioner Bohn seconded amotion to approve the
May 20th minutes. Vote - Ayes - All.
Carver County Community Development Block Grant - Joint Powers Agreement:
Assistant City Attorney, Craig Mertz covered the contract filed by the
Carver HRA referring to the background and limitations of the agreement.
Having detailed the authority and possible future conflicts with
an already existing HRA in the Chanhassen community, the Commissioners
unanimously agreed upon the motion as follows: A motion was made
by Jim Bohn and seconded by Tim Russell that the Chanhassen HRA is
not interested in turning over any of their authority to the Carver HRA.
The application to do such was not agreeable for signature. Vote-
All Aye. Motion Carried. The City Attorney will follow through in
declining signature to the application submitted by the Carver HRA.
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1980 Budget:
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PROPOSED HRA 1980 OPERATING BUDGET
PERSONAL SERVICES
Salary & Wages, Reg.
Benefits
TOTAL PERSONAL SERVS.
COMMODITIES
Office Supplies
CONTRACTUAL SERVICES
BRW (1st Phase)
BRN (2nd Phase)
Appraisals
Attorney Fees
Computer Fees
J:'ropoSed
Exp's. thru Exp's.
4/30/8~. 4/30-~/31
-0-
-0-
-0-
-0-
5,600
6,700
2,900
500
TOTAL CONTRACTUAL SERVS. 15,700
CAPITAL OUTLAY
Land Purchases
Option Agreements
TOTAL CAPITAL OUTLAY
7,500
7,500
3,000
500
3,500
300
5,000
5,000
5,000
1,000
16,000
10,000
10,000
Total
3,500
300
31,700
17,500
UNALLOCATED 4,000
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TOTAL PROPOSED o.PERATING .EXPENDITURES - H. R. A. 57 , 000
-~." .~.._... -'-"~"'-.,.. ---,
SOURCES OF REVENUE - 1980 H.R.A. OPERATING BUDGET
Current Receipts (Property tax collections
tax increments)
Transfers In/Out
Beginning Cash Balance
Total Resources
TOTAL EXPENDITURES
57,000
-0-
-0-
57,000
57,000
. .
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1980 Budget, Continued:
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Having reviewed and discussed the 1980 May through December Budget,
a motion was made by Commissioner Russell and seconded by Commissioner
Bohn to approve said May through December budget. Vote - All Aye.
This item will be submitted to the City Council for their consideration.
As noted in the City Manager's memorandum of June 6, 1980, concerning
the 1980 HRA budget, further steps to be taken by the HRA (steps 3-9)
will be discussed at the next scheduled HRA meeting.
Correspondence/General Information:
Correspondence relative to the Downtown Business District had been
read by all Commissions. No questions or action was taken.
Don Ashworth noted that the City Council approved Clifford Whitehill's
continuation on Chanhassen's HRA. All commissioners concurred with
appreciation for his contributions.
A motion was made by Commissioner Bohn and seconded by Commissioner
Russell to adjourn the meeting. Vote: Ayes - All. Meeting adjourned
at 10:40 p.m.
The next scheduled HRA meeting will be on Tuesday July I, 1980.
Tentative items of consideration include:
1.
2.
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4.
5.
6 .
7.
8.
9.
Approve 1980 Budget.
Forward to City Council for Approval.
Authorize preparation of job description, i.e. HRA Executive
Director; review and approve same after council action.
Authorize advertisement of position.
Negotiate Phase II Contract - BRW.
Request City Council to initiate feasibility study for
public improvement project including employment of BRW,
in accordance with contract negotiated by HRA.
Authorize Attorney/BRW/Attorney to prepare suggested
relocation policies.
Authorize Attorney to prepare developers contracts in
terms of tentative agreements between City/Bloomberg
Companies/Kraus Anderson.
Authorize Attorney to prepare estimates for and complete
appraisals.
Respectfully Submitted,
June Russell
Secretary
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