1982 11 18
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Minutes
Chanhassen Housing and Redevelopment Authority
Regular Meeting
November 18, 1982
CALL TO ORDER
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Chairman Bill Gullickson called the meeting to order at 7:30 p.m.
Present were Commissioners Gullickson, Bohn, Whitehill, Horn, and
Russell. Executive Director Scott Martin was also present.
APPROVAL OF MINUTES
Bohn moved, seconded by Horn, approval of the minutes of the
August 19, 1982 meeting, as presented. All voted in favor and
the motion carried.
The Commissioners also noted the minutes of the Special Joint
meeting with the City Council held on October 7, 1982.
POSITION PAPER ON STATUS OF DOWNTOWN REDEVELOPMENT PROJECT
Russell moved, seconded by Whitehill, to formally endorse the
Downtown Project Steering Committee's "Position Paper on the
Status of the Downtown Redevelopment Project" (dated November 2,
1982), as presented. All voted in favor and the motion carried.
The Commissioners also noted BRW's evaluation of the revised
Kraus-Anderson Development Proposal (dated October 28, 1982),
which was reviewed by the Downtown Project Steering Committee
prior to preparation of the Position Paper.
EXTENSION OF PURCHASE OPTION AGREEMENTS FOR CHANHASSEN TIRE AND
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AUTO AND RIVIERA SUPPER CLUB PROPERTIES
Whitehill moved, seconded by Horn, to extend the purchase option
agreements for the Chanhassen Tire and Auto (Havlik) and Riviera
Supper Club (Krueger) properties for a three (3) month period
(December 1,1982 - March 1, 1983), in accordance with Section
3.1(a) of each agreement. All voted in favor and the motion
carried.
REIMBURSEMENT OF RIVIERA APPRAISAL COSTS
Whitehill moved, seconded by Horn, to authorize the Statutory
reimbursement of $300 (Three-Hundred Dollars) to the Riviera
Supper Club for costs associated with the Real Estate Appraisal
(dated September 12, 1980) prepared on their behalf by o. J.
Janski and Associates, Inc. All voted in favor and the motion
carried.
HRA Minutes
November 18, 1982
Page 2
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AUTHORIZE FEASIBILITY STUDY FOR ADAPTIVE-REUSE OF INSTANT WEB
BUILDING
Whitehill summarized his impressions of the Instant Web Building
following the Steering Committee's tour of November 2, 1982.
Russell moved, seconded by Horn, to accept BRW's professional
services proposal (dated "Received October 28, 1982") for pre-
preparation of a Feasibility Study for the Adaptive-Reuse of the
Instant Web Building, as recommended by the Downtown Project
Steering Committee, with funding to be allocated from the Downtown
Project Improvement Fund. All voted in favor and the motion
carried.
AUTHORIZE MARKET ANALYSIS STUDY TO DETERMINE SUPERMARKET
POTENTIAL
Mr. Elliott Olson, President of Retail Systems, Inc. reviewed
their proposal to conduct a Market Analysis Study to determine
the potential for a full-line supermarket in the Downtown Project
Area.
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Russell moved, seconded by Bohn, to authorize the preparation of a
market analysis study by Retail Systems, Inc., as outlined in
their proposal dated "Received November 15, 1982", and to
authorize the Executive Director to execute a professional ser-
vices agreement with Retail Systems, Inc. on behalf of the HRA.
Funding for this study shall be allocated from the Downtown
Project Improvement Fund. All voted in favor and the motion
carried.
CHAMBER OF COMMERCE REQUEST FOR HRA ACQUISITION OF GUY PETERSEN
PROPERTY-YPARCEL #1)
Whitehill moved, seconded by Horn, to take no action towards
acquisition of the Guy Petersen property (Parcel #1), as
requested by the Chanhassen Chamber of Commerce, since acquisition
would be premature and limited redevelopment funds are needed for
Phase One acquisitions in the Downtown Core Area. All voted in
favor and the motion carried.
STATUS REPORT ON TRANSPORTATION TASK FORCE
Martin presented a brief overview of recent efforts by the
Chamber of Commerce Transportation Task Force to have Highway 5
upgraded to four-lane divided arterial standards from 1-494 to
Highway 41. He explained that Mayor Hamilton has requested $500
in HRA funds to assist the Task Force in their efforts to gain
funding approvals for upgrading Highway 5.
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HRA Minutes
November 18, 1982
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Whitehill moved, seconded by Horn, to appropriate $500
(Five-Hundred Dollars) from Fund #460 to the Chamber's
Transportation Task Force, since the need for major improvements
to Highway 5 is identified in the Adopted Redevelopment Plan.
All voted in favor and the motion carried.
APPROVAL OF BILLS
Horn moved, seconded by Bohn, to approve the bills from September,
October, and November, 1982, as presented, including the invoices
from BRW, Inc. (No. 32125) and Coordinated Management Systems,
Inc. (No. 6423) which were distributed at tonight's meeting. All
voted in favor and the motion carried.
NEW BUSINESS
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Martin reported that he has contacted two real estate pro-
fessionals concerning current market leasing rates for office,
warehouse, and manufacturing facilities in an effort to determine
the short-term leasibility of the Instant Web Building as of the
first of the year. An average rental rate of $2.00 per square
foot for warehouse space was quoted for the Southwest Suburban
Area. Both agents also advised him that it would be extremely
difficult, if not impossible, to lease office space for a period
of less than three (3) years, and probably even for a term of up
to five (5) years.
Martin recommended negotiating with Minnetonka, Inc., since they
have expressed an interest in leasing up to 40,000 square feet of
warehouse space for raw materials storage.
The Commissioners directed Martin to negotiate with Minnetonka,
Inc. for a lease with a 6 month (maximum) cancellation clause.
Martin reported that he has recently begun to explore the con-
cept of developing a district heating system within the Downtown
Project Area that would be fueled by the incineration of solid
waste (garbage). Gullickson cautioned the HRA to move slowly in
this area, as there are as many horror stories about efforts that
have failed as there are successful projects. More information
concerning this idea will be presented to the Downtown Project
Steering Committee and HRA in the future.
ADJOURNMENT
Horn moved, seconded by Russell, to adjourn the meeting at 9:30
p.m. All voted in favor and the motion carried.
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