1983 02 17
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Minutes
Chanhassen Housing and Redevelopment Authority
Regular Meeting
February 17, 1983
Call to Order
Vice-Chairman Cliff Whitehill called the meeting to order at 7:35
p.m. Present were Commissioners Horn, Bohn, and Whitehill.
Russell arrived at 8:00 p.m. Absent was Gullickson.
Also present was Mayor Hamilton and Councilpersons Watson,
Swenson, and Geving. City Manager Ashworth and Executive
Director Martin, and Planning Commission representative Bill Ryan
were also present.
Approval of Minutes
Bohn moved, seconded by Horn, approval of the minutes of the
November 18, 1982 meeting, as presented. All voted in favor and
the motion carried.
presentation of Retail Systems, Inc. Supermarket Study
Representatives from Retail Systems, Inc. presented the results
of the Chanhassen Supermarket Study which they prepared during
the course of the last two month period. Their presentation
included a surrunary of the results of a telephone survey of area
residents made during early December regarding personal shopping
habits, which provided the basis for identification of the
Downtown Chanhassen trade area. Elliott Olson, President of
Retail Systems, Inc. suggested that an opportunity currently
exists for securing a new supermarket for downtown if the HRA and
Kraus-Anderson can move quickly enough to beat Cub food stores
into the marketplace. Spalla projected that a new Cub store
would be ready to open at Hwy. 7/101 in Minnetonka in about 2!-3
years, based upon information from one of Kraus-Anderson's
construction divisions who have been working on that project.
Olson reiterated that any new store in Chanhassen would probably
have to precede Cub into the trade area, or it would be necessary
to wait several years after Cub opens in order to "let the dust
settle". In other words, Olson recommended pursuing retailers
who might be willing to move quickly towards the development of
a 15,000 sq. ft. supermarket.
Whitehill asked Olson if a land or building rent subsidy or cost
writedown would be necessary to successfully attract such a
supermarket. Olson replied that some public assistance would
probably be required, but the level of assistance could vary
depending on a number of variables. Whitehill felt that the HRA
should have some projections for estimated levels of public sub-
sidies necessary to make a new store profitable.
Russell moved, seconded by Bohn, to authorize Retail Systems,
Inc. to prepare sales projections based upon an assumption that
a Cub Food store locates in the area of Highway 5 and 1-494 in
Chanhassen Housing and Redevelopment Authority
February 17, 1983
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Eden Prairie, and to prepare an analysis of what level of public
subsidy, if any, would likely be required if the HRA is to be
successful in attracting a 15,000 sq. ft. supermarket into
Downtown Chanhassen. All voted in favor and the motion carried.
Status Report on Adaptive Reuse Study for Old Instant Web
Building
Mark Swenson of BRW, Inc. presented a status report on the feasi-
bility study being prepared by BRW, Inc. for adaptive reuse of
the old Instant Web facility. He reviewed his findings con-
cerning the structural condition of the building, and highlighted
the sections being developed within the report. He recommended
that the roof section damaged in late December, 1982 not be
repaired until the study is completed. The final report will be
presented in its entirety at the next regular HRA meeting.
Horn asked that specialty uses such as an IMAX Theatre and a
nightclub on the order of the "Carlton Celebrity Room" be con-
sidered in the feasibility study.
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Geving suggested reuse of the Instant Web company's office area
and the fireplace room for Chamber of Commerce offices and the
office of the HRA Executive Director.
Whitehill moved, seconded by Bohn, to offer the use of the old
Instant Web building office space to the Chamber of Commerce and
other publiC/Civic organizations at a rental rate of $l.OO/year,
subject to a thirty (30) day lease cancellation provision. All
voted in favor and the motion carried.
Insurance Claim for Instant Web Building Roof Damage
Whitehill moved, seconded by Russell, to postpone repair of the
Instant Web Building roof until the BRW, Inc. feasibility study
is completed, unless a delay in repair work jeopardizes the
insurance settlement. All voted in favor and the motion carried.
Insurance Coverage for Instant Web Building
Whitehill moved, seconded by Russell, to accept the low bid of
Dolliff, Inc. Insurance Agency for Replacement Cost Coverage of
the old Instant Web Building at a combined property and general
liability annual premium of $3,529. All voted in favor and the
motion carried.
Old Instant Web Building Leases
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Whitehill moved, seconded by Horn, to approve the proposed leases
with Animal Fair, Inc. and Halverson Supplies, Inc. for rental of
space in the old Instant Building, as recommended by the
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February 17, 1983
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Executive Director, and to authorize the Chairman and Executive
Director to execute said leases on behalf of the HRA. All voted
in favor and the motion carried.
Extension of Purchase Option Agreements for Chanhassen Tire and
Auto and Riviera Supper Club Properties
Whitehill moved, seconded by Bohn, 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
(March 1, 1983 - June 1,1983), in accordance with Section 3.1(a)
of each agreement. All voted in favor and the motion carried.
Year IX Community Development Block Grant program Activities
Martin reviewed the current status of activities funded by the
CDBG program during the first two years of local participation,
and advised the HRA of several potential activities which could
be funded by the preliminary Year IX CDBG allocation of $41,832.
Whitehill moved, seconded by Horn, to recommend that the City
Council allocate Year IX CDBG funds for Senior Citizen Housing
Site Acquisition ($40,000) and Program Administration ($1,832).
All voted in favor and the motion carried.
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Resolution #83-1 Approving Agreement with Carver County for
Railroad Crossing Improvements
Whitehhill moved, seconded by Bohn, to adopt Resolution #83-1
approving an agreement with Carver County for partial funding of
costs for the design and installation of an upgraded Railroad
Crossing on West 78th Street. All voted in favor and the motion
carried.
Approval of Bills
Bohn moved, seconded by Whitehill, to approve the bills from
December, 1982 and January and February, 1983, as presented. All
voted in favor and the motion carried.
Old Business
Horn moved, seconded by Whitehill, to accept the low bid of Wrase
Builders, Inc. for installation of energy conservation and
weatherizing improvements in the old Instant Web building at a
cost of $1,980. All voted in favor and the motion carried.
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The HRA briefly discussed the recently prepared Housing Survey
form which was scheduled for citywide distribution within the
next week. The results of this survey will be provided to the
HRA as soon as they become available.
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Chanhassen Housing and Redevelopment Authority
February 17, 1983
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New Business
Martin advised the HRA of a special joint meeting with the City
Council scheduled for Tuesday, March 15, 1983 at 7:30 p.m. The
purpose of this meeting is to review special financial reports
being prepared by the City's Accountants and Financial (Bond)
Advisors.
Adjournment
Bohn moved, seconded by Horn, to adjourn the meeting at 11:00
p.m. All voted in favor and the motion carried.