1981 12 03
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Chanhassen Housing and Redevelopment Authority
Special Meeting
December 3, 1981
Minutes
Call to Order
The meeting was called to order at 7:35 p.m. by Chairman Gullickson.
Present were Commissioners Gullickson, Bohn, Horn, and Russell.
Absent was Commissioner Whitehill. Executive Director Scott Martin,
Attorney Russ Larson, and City Manager Don Ashworth were also
present. Whitehill arrived at 8:15 p.m.
Approval of Minutes
Bohn moved, seconded by Horn, to approve the minutes of the September
10 and October 6, 1981 meetings as presented. All voted in favor
and the motion carried.
Carver County Joint Cooperation Agreement
Bohn moved, seconded by Russell, to adopt Resolution #81-7 approving
the Joint Cooperation Agreement with Carver County for participation
in the 1980 Community Development Block Grant Program under Ghant
#B-80-DS-72-00l0 and authorizing the Chairman and Executive Director
of the HRA to execute the agreement on behalf of the HRA. All voted
in favor and the motion carried.
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Approval of 1982 Administrative Operating Budget
Don Ashworth, City Manager, presented a brief overview of the HRA's
1982 Administrative Operating Budget, as adopted by the City Council
on October 13, 1981.
Gullickson requested that the Downtown Project Construction Budget
be available for review at the next regular meeting. Martin explained
that the construction budget consists of the expenditure budget approved
with the first bond issue, but agreed to provide up to date report
on the fund status at the next meeting.
The Commissioners also discussed the necessity of establishing a
separate accounting system for HRA revenues and expenditures that
would provide for approval of bills by the HRA rather than the City
Council. Martin was directed to request a legal opinion from the
Attorney concerning legal requirements for HRA accounting of tax
increment revenues.
Russell moved, seconded by Bohn, to approve the 1982 HRA Adminis-
trative Operating Budget as presented, contingent upon presentation
of an up to date status report on the Downtown Project Construction
Budget at the next regular meeting. All voted in favor and the motion
carried.
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HRA Minutes
December 3, 1981
Page 2
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Havlik Property Purchase Option Agreement (Parcel #30)
Russ Larson, Attorney, reviewed the contents of the Purchase Option
Agreement and Memorandum of Option Agreement offered to and accepted
by John and Loretta Havlik dated December 3, 1981 for purchase of
the Havlik Mobil Station property.
Commissioner Whitehill arrived at this point in the meeting.
Whitehill moved, seconded by Bohn, to approve the purchase option
agreement and the Memorandum of Option Agreement as executed by the
Havliks, and to authorize and direct the Chairman and Executive
Director to execute both agreements on behalf dfbhe HRA. The
attorney was also ordered to immediately file the Memorandum of
Option Agreement in the office of the County Recorder. All voted in
favor and the motion carried.
Huber Property Acquisition (Parcel #26)
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Larson presented a status report on his negotiations with John Huber
for acquisition of his vacant property identified as Parcel #26.
He pointed out that an error had been made in the appraisal of this
property, which consisted of including existing public street right-of-
way in the property's land area computations. He concluded that the
"saleable" portion of the property consists of only 88,000 square
feet, and not the 99,590 square feet reported in the appraisal report.
As a result of this error, negotiations for acquisition of the
property have become confused and no progress has been made to acquire
the property in the immediate future. He recommended that authority
be given to him to have the property reappraised and to commence
eminent domain proceedings for acquisition if the property owner does
not accept an offer equal to the newly appraised value.
Whitehill moved, seconded by Horn, to authorize reappraisal of the
Huber property and to continue acquisition negotiations following
receipt of the new appraisal. All voted in favor and the motion
carried.
Riviera Property Acquisition/Relocation (Parcel #31)
Larson presented a status report on the Riviera property acquisition/
relocation negotiations. At issue was the amount of monthly rent to
be paid by the Riviera if occupancy of the property continues beyond
the date of acquisition by the HRA, and the amount to be paid for
extensions to the original option period.
The Commissioners agreed that monthly rent following HRA acquisition
should be set at 1/12th of the annual real estate taxe~ exclusive
of special assessments, on the property payable in the year of closing.
The Commissioners also agreed to accept a provision in the purchase
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HRA Minutes
December 3, 1981
Page 3
option agreement which provides for a $5,000 payment by the HRA for
each quarterly option term extension, subject to the requirement
that option extension money paid shall be deducted from the total
purchase price upon HRA acquisition.
HRA Acquisition/Rental Policy
Horn moved, seconded by Whitehill, to extablish a formal HRA property
acquisition policy that provides for a uniform rental payment to the
HRA by businesses occupying properties following final HRA property
property acquisition which is equal to one-twelfth (1/12th) of the
annual real estate taxes, exclusive of special assessments, on the
property payable in the year of closing. All voted in favor and the
motion carried.
Downtown Redevelopment Project Status Report
Martin updated the Commissioners on the current status of activities
concerning the Downtown Redevelopment Project. He reported that
Red Owl stores had not yet completed their market analysis study,
but that completion of the study was imminent. He also reported
that Kraus-Anderson was interested in possibly constructing their
mandatory building improvements in two phases rather than all at
once, due to the recessionary economy. Any decision by Kraus-Anderson
relative to project phasing would not be made until the supermarket
issue is resolved.
Martin also reported that project field survey work has commenced,
and is presently more than one-half (~) completed. Completion
of this work is anticipated within two (2) weeks, weather permitting.
Traffic Analysis Study - Highway 5 Intersections
Martin reported that completion of the HRA's intersection study for
Highway 5 intersections in the area of Chanhassen Lakes Business Park
was temporarily delayed while Minnetonka, Inc. prepared an Environ-
mental Assessment Worksheet (EAW) and traffic study, which is required
as part of their plan review requirements prior to receiving city
approval.
The results of the Minnetonka, Inc. traffic analysis will be incorporated
in the HRA's overall intersection study. No completion date for the
study is known at this time.
Martin also reported that the State Department of Transportation
has determined that traffic signals are warranted for the intersection
of Highway 5 and Powers Boulevard (Co. Rd. 17) based on current
traffic volumes.
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HRA Minutes
December 3, 1981
Page 4
e Kraus-Anderson/Bloomberg Companies Redevelopment Agreements Expiration
Dates
Whitehill moved, seconded by Russell, to adopt Resolutions #81-5
and #81-6, which clarify the expiration dates of each Redevelopment
Agreement by establishing May 27, 1982 as the expiration date of
each. All voted in favor and the motion carried.
West 79th Street Realignment Study
The results of the West 79th Street realignment study, as prepared
by BRW, Inc., were reviewed by the HRA. No action was taken, except
to review the consultant's findings and recommendations and to file
the study for future reference.
Adjournment
Whitehill moved, seconded by Horn, to adjourn the meeting at 9:30 p.m.
All voted in favor and the motion carried.
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