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1981 09 10 Chanhassen Housing and Redevelopment Authority Special Meeting September 10, 1981 4It Minutes Call to Order The meeting was called to order at 8:00 p.m. Present were Vice- Chairman Whitehill and Commissioners Bohn and Russell. Absent was Gullickson and Horn. Excecutive Director Scott Martin and Attorney Russ Larson were also present. Horn arrived at 8:25 p.m. Approval of Minutes Bohn moved, seconded by Russell, to approve the minutes of the August 20, 1981 meeting as presented. All voted in favor and the motion carried. Havlik Property Acquisition (Parcel #30) John Havlik was present to request a clarification of the action taken by the HRA on December 18, 1980 when the appraised value of his property was adjusted from $200,605 to $246,105. At issue was the intent of the HRA when agreeing to adjust the appraised value. Attorney Larson interpreted the HRA's action to mean that the appraisal adjustment would be valid only if the Havlik business were relocated within the HRA tax increment district. Havlik believed that the adjustment was not related to rebuilding in the tax increment district. e Havlik presented a review of the history of the acquisition negotia- tions with Larson. He added that he fully intends to rebuild in the tax increment district if the adjusted appraised value is agreed to by the HRA. Whitehill pointed out that Havlik's justification for the additional $45,500 over and above the original appraisal included $11,000 for additional costs to purchase land for a new building. He stated that a fair appraisal would be $235,105 ($246,105 less the $11,000 for land included in the justification presented by Havlik). Havlik pointed out that he is presently faced with land costs of $3.50/sq. ft. He added that he may only be able to build a service repair garage with U-haul rentals, but without gasoline sales, due to costs of rebuilding a full gasoline service station. Russell asked if Havlik had a separate appraisal done for his property in order to substantiate his request for an increase in appraisal value. Havlik responded that he had not ordered such an appraisal. Commissioner Horn arrived at this point in the meeting. Bohn stated that he does not recall that the appraisal adjustment was tied directly to relocation within the district. e Havlik said that he would not agree to rent his business from the HRA following acquisition. HRA Special Meeting September 10, 1981 Page 2 e Larson suggested that he continue private negotiations with Havlik to attempt to resolve the remaining issues. No action was taken by the HRA on this issue at this time. Traffic Analysis Study for Highway 5 Intersections Russell moved, seconded by Whitehill, to authorize BRW, Inc. to conduct a traffic analysis study at a cost not to exceed $5,800 to determine if or when signalization of the Highway 5/Co. Rd. 17 intersection is warranted due to traffic safety considerations and traffic volumes. The traffic study should also include present and future traffic operations at Park Drive and Old County Rd. 17. BRW shall use all data available from the Minnesota Department of Transportation and Carver County concerning recent traffic counts and roadway improvement plans when preparing the study. All voted in favor and the motion carried. Havlik Property Acquisition Russ Larson and John Havlik returned to the meeting at this time and presented a negotiated settlement for HRA consideration. Larson stated that Havlik agreed to enter into a purchase option agreement with the HRA that provides for the following considerations: e 1). The purchase price of the real estate and immovable equipment shall be $235,105. This is the total purchase price of the Havlik property to be paid by the HRA, regard- less of whether or not Havlik rebuilds within the tax increment district. 2). Following HRA acquisition of the land and building, Havlik will pay monthly rental to the HRA during the time he occupies the property before relocating. The monthly rental rate shall be equivalent to one-twelfth (1/12) of the real estate taxes due on the entire property in the year of closing on the purchase option. Havlik will also be responsible for paying in full all unpaid taxes and special assessments outstanding on the property as of the date of closing. Larson further advised the Commission that if Havlik relocates within the HRA tax increment district in a manner acceptable to the HRA and the City, the development contract governing improvement of the new site would provide for certain relocation cost adjustments not to exceed $11,000 over those relocation costs as initially appraised. Additionally, Havlik should qualify for a 15% land cost credit based on the new site land and building cost. John Havlik stated that the understandings reported by Larson and set out above were acceptable to him. ~ Whitehill moved, seconded by Bohn, to accept the purchase option settlement covering acquisition of the existing Havlik site upon the terms outlined above, and to direct the attorney to draft the necessary legal document immediately for Havlik's signature. All voted in favor and the motion carried. The attorney was also instructed to work out a development e e - HRA Special Meeting September 10, 1981 Page 3 contract with Havlik covering the Havlik relocation in the tax increment district when a new site has been selected. Old Business Martin reported that Mike Sorenson has signed a purchase agreement to sell his property (Parcel #8) to the HRA at a total price of $25,000. The closing on the property is scheduled for September 15, 1981. Martin reported that proceeds from the first bond issue for the Downtown Project were received today. The closing date for the Instant Web building has been tentatively scheduled for September 16, 1981. Martin updated the Commissioners on progress regarding the Riviera acquisition. He said that staff was working with the owners to identify several viable relocation sites. The appraisal and purchase price offered by the HRA are acceptable to the Riviera. New Business Martin reported that the owner of Chanhassen Pharmacy had contacted him concerning the possibility of early relocation. The owner was interested in relocating within the next month or two and wanted to know if he could receive relocation expenses at that time. The Commissioners all agreed that no early relocation payments should be made to any business (not owner-occupied) wishing to relocate substantially in advance of the time that the HRA requires possession of the property. Adjournment Russell moved, seconded by Bohn, to adjourn the meeting at 9:40 p.m. All voted in favor and the motion carried.