1981 07 23
Chanhassen Housing and Redevelopment Authority Meeting
July 23, 1981
Minutes
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Ca'll'edt'd Order: The meeting was called to order at 7: 50 p.m.
Prese~were Chairman Gullickson, and Commissioners Horn and
Bohn. Russell arrived at 8:05 p.m. Absent was Whitehill.
Executive Director Scott Martin and Attorney Russ Larson were also
present.
App'ro'v'a'l bf: Minutes: Horn moved f seconded by Bohn, to approve
the minutes of the June 18, 1981 minutes as presented. All voted
in favor and the motion carried.
Bond' Sale St'atu;s Repo'rt: Martin gave a brief status report on the
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Downtown Project Bond Sale. City Bond Consultants have been
directed to negotiate with prospective investors for a 30 day
period commencing July 6, 1981. The City Council will call a
special meeting to sell the bonds once a low enough interest rate
to make the sale feasible is obtained.
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The Commissioners supported the actions of the City Council to
do everything possible to obtain an interest rate on the bonds
that falls within the financial feasibility model for the down-
town project.
Bloomberg- Home Center project: The Commissioners discussed the
Attorney" s -Opinion" dated July 1, 1981, regarding the contractual
obligation that the City and HRA has to allow construction of
Bloomberg Company Home Center on their property lying just south-
west of the Ring Road. They generally agreed that the Home Center
should be permitted on this site, but only with substantial,
effective screening of all lumber storage areas and truck loading
areas.
Martin explained that this concern was already conveyed to Bob
Davis, architect for Bloomberg Companies at a meeting held on
July 22, 1981. The HRA will have an opportunity to review plans
for the Home Center and all downtown core area construction prior
to City reviews.
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Horn felt that the Home Center should be allowed only if no out-
side storage was visable from public view and that only one such
development should be permitted within this zoning district.
Tn'f'lat'ion Adju'stment' policy: Bohn moved, seconded by Russell, to
ret'aTn all -tne"existing appraised values for properties to be
acquired for the downtown project, based on information supplied
by the Director concerning the current commercial real estate
market in the Twin Cities Metro Area. The property appraisals
completed in 1980 by the Authority are still valid and represent
valuations that are more than fair for property owners affected by the
Redevelopment Project. The following land acquisition policy
shall apply to all negotiations:
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Chanhassen HRA Meeting
July 23, 1981
Page 2
"If specific negotiations reach an impasse due to a significant
disagreement over the adjusted appraised value Of certain properties,
staff will encourage the property owner to arrange for a second
certified appraisal of his property in order to help resolve such
differences. The property owner's appraiser must be certified to
conduct such an appraisal and said appraiser must be approved by
Staff prior to commencement of the appraisal. The property owner
will be reimbursed up to $300 (not to exceed the actual cost of the
appriasal) for the cost of such an appraisal, upon satisfactory
completion of the appraisal.
If minor adjustments to the HRA appraisal are necessary to reach
a negotiated settlement, Staff shall have the authority to use
its discretion in making such adjustments prior to presenting,
the negotiated settlement to the HRA for final acceptance and approval."
All voted in favor and the motion carried.
Soren~on P~oper~y_Acquisition (Parcel #8): Russ Larson reported
on his negotiations with Mike Sorenson for acquisition of his
vacant property located along the east side of Great Plains
Boulevard, just south of West 79th Street. A letter from Mr.
Sorenson (dated June 16, 1981) which itemized expenses he's
incurred for proposed development on his property was reviewed
by the Commissioners.
Bohn moved, seconded by Horn, to reconfirm the action of June 18,
1981, and authorize the acquisition of the Sorenson property at
a cost not to exceed the appraised value of $22,000. All voted
in favor and the motion carried.
Huber Property Acquisition (Parcel #26): Russ Larson updated the
Commissioners on his negotiations with John Huber.
Horn moved, seconded by Bohn, to authorize the attorney to negotiate
for an option agreement for the purchase of the Huber property
at a cost not to exceed the appraised value of $185,000. All voted
in favor and the motion carried.
Havlik .prope::~YAc~uisi.ticm(parcel#30): Following an update on
the negotiat1ons w1tn John Havlik for acquisition of his property,
Russell moved, seconded by Horn, to hold firm at the adjusted
appraised value of $246,105 for the Havlik property until September 1,
1981, after which time the Commissioners will reconsider their
action of December 18, 1980, and possibly make a downward adjustment
of the adjusted appraised value. An option agreement for the
purchase of the Havlik property should be diligently pursued by
the attorney immediately after the sale of the downtown project
bonds.
All voted in favor and the motion carried.
Chanhassen HRA Meeting
July 23, 1,981
l?9,ge3 .
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Riviera Property Acquisition (Parcel #31): Larson updated the
Commissioners on the status~of acquisition negotiations with the
owners of the Riviera. The appraised value of ~325,Oo6 for lanu
and building, and total offer of ~39l,606 (including relocation
and equipment), is apparently acceptable to the owners.
The only major problem with this acquisition/relocation is finding
a suitable relocation site which is affordable to the Riviera for
a new facility.
Amendment to Instant Web Contract:
Bohn moved, seconded by Horn, approval of an amendment to Section
3.01 of the Contract for Acquisition and Development of Instant
Web, Inc. dated May 20, 1981, providing for the construction of
a minimum of 200,000 square feet of floor area in the new Instant
Web office/Manufacturing facility, instead of the original require-
ment that such building be 110,000 square feet and cost not less than
$3.1 million. All voted in favor and the motion carried.
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Downtown Courtyard Sculpture: The Commissioners discussed the
idea of havlng local sculptor, Neal Dalen, create a sculpture for
the Downtown Courtyard. Gullickson suggested that the HRA sponsor
a contest for sculptor's from throughout Minnesota, with the
winner being commissioned to create a Courtyard sculpture. The
Commissioners generally supported this idea and asked Chairman
Gullickson to pursue it further with an art expert, and then
report back to the Commissioners at the August meeting.
New Business: Martin reported that the City Council approved the
Instant Web site plan on July 20, 1981.
He also reported that title abstract work was underway for the
properties to be acquired for the Downtown Project. BRW has also
been working with the telephone, gas, and electric companies in
planning for relocation of utilities in conjunction with ring-
road construction starting next spring.
A report on the status of the 1981 HRA operating budget was also
presented. Expenditures from HRA funds through the first half of
the year are running well-below budget, with only 27 percent of
all funds expended as of June 30.
The deficit in the Ring-Road Improvement Project Fund has reached
nearly $200,000, an increase of approximately $50,000 since .
January 1, 1981. This fund will be replenished upon sale of the
first bonds and receipt of bond proceeds.
Adjournment: There being no further business, the Chairman ad-
JOurned the meeting at 9:45 p.m.
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