1981 12 17
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Chanhassen Housing and Redevelopment Authority
Regular Meeting
December 17, 1981
Minutes
~ Call to Order
The meeting was called to order at 7:30 p.m. by Chairman Gullickson.
Present were Commissioners Gullickson, Born, and Bohn. Absent were
Russell and Whitehill. Also present were Executive Director Scott
Martin, Attorneys Russ Larson and Craig Mertz.
Approval of Minutes
Horn moved, seconded by Bohn, to table action on the December 3, 1981
minutes until the next regular meeting. All voted in favor and the
motion carried.
Riviera Purchase Option Agreement {Parcel #31)
Russ Larson presented an overview of the terms included in the
Purchase Option Agreement for acquisition of the Riviera property,
as executed by the owners.
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Bohn moved, seconded by Horn, to approve the purchase option Agreement
and Memorandum of Option Agreement for the Riviera property as
presented, and to authorize and direct the Chairman and Executive
Director to execute the agreement on behalf of the HRA. The Executive
Director was also directed to pay the option money to the Riviera
owners, and the Attorney was ordered to immediately file the
Memorandum of Option Agreement in the Office of the County Recorder.
All voted in favor and the motion carried.
Special Assessment Reduction Program
Martin presented a historical review of past HRAactions concerning
methods available to the HRA to induce development within the Business
Park and adjacent industrial lands.
Craig Mertz reviewed an outline of a proposal to reduce outstanding
special assessments within the area served by City Public Improvement
Project #78-3 based on the value of new construction on a lot-by-Iot
basis. Seven percent (7%) of the cost of new on-site private
improvements excluding land cost would be used to compute the amount
of each specific assessment reduction.
The Commissioners expressed concern that such a program may not
result in more rapid development of Business Park lands if the
overall land costs to developers remained at current levels.
Martin was directed to invite representatives from Rauenhorst
Corporation and Instant Web, Inc. to the next meeting to discuss
this program with the Commissioners in greater detail and to resolve
concerns about the effectiveness of the program.
HRA Insurance Coverage
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Larson reviewed recommendations for insurance coverage for the BRA.
Presently, no separate coverage exists for HRA officials or property.
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Chanhassen HRA Minutes
December 17, 1981
Page -2-
Horn moved, seconded by Bohn, to instruct the Attorney to secure all
recommended insurance coverage for the HRA immediately. All voted
in favor and the motion carried.
HRA Fund Status Reports
Martin presented Fund Status Reports for the HRA Fund #460 and #604,
along with a recommended Revised Budget for #604. The Commissioners
reviewed the reports, but felt that it was unnecessary to reyise
the budget at this time.
HRA Accounting Requirements
Craig Mertz presented a letter (dated December 17, 1981) outlining
legal requirements for HRA fund accounting.
The Commissioners preferred the establishment of a separate accounting
system for HRA funds, rather than contracting with the City under a
Joint Powers Agreement to provide the HRA with this service within
the City's accounting system. Martin recommended delaying any action
on this matter until the City Manager was consulted concerning the
two available options. The Commissioners agreed with this recommen-
dation, but directed Martin to prepare a list of past disbursements/
expenditures of the HRA since the date of first receipt of tax
increment revenues. This list should show the dates, check numbers,
amount, and names of payees. The HRAwill act on this expenditure
list by resolution at the next regular meeting.
Approval of Bills
Bohn moved, seconded by Horn, to approve the bills for November,
1981 as presented. All voted in favor and the motion carried.
Adjournment
Horn moved, seconded by Bohn, to adjourn the meeting at 10:30 p.m.
All voted in favor and the motion carried.