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1983 05 19 Minutes e Chanhassen Housing and Redevelopment Authority Regular Meeting May 19, 1983 Call to Order Chairman Gullickson called the meeting to order at 7:40 p.m. Present were Commissioners Gullickson, Horn, Bohn, and Russell. Absent was Whitehill. Also present was City Manager, Don Ashworth and Executive Director Martin. Approval of Minutes Bohn moved, seconded by Russell, to approve the minutes of March 24, 1983 meeting, as presented. All voted in favor and the motion carried. Review of Tax Increment Financing Plan/Status of Proposed Bond Sale e Ashworth presented a brief overview of the status of the pro- posed bond sale to refinance/restructure the 1981 Tax Increment Bonds. As of this date, attempts to sell the bonds have been unsuccessful. He also reviewed the Tax Increment Financing Plan prepared by the City's Auditors in February, 1983. He suggested that certain assumptions used in making revenue/expenditure fore- casts be modified to reflect a more realistic scenario. No action was taken on this item. Extension of Purchase Option Agreements for Chanhassen Tire and Auto and Riviera Supper Club Properties Bohn moved, seconded by Russell, 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 (June 1, 1983 - September 1, 1983), in accordance with Section 3.l(a) of each agreement, and to direct staff to seek an addi- tional option period of one year from both parties in order to maintain the status quo with the Downtown Redevelopment Project Plan. All voted in favor and the motion carried. Resolution #83-3 Approving Assessment Agreement with Energy Controls, Inc. Russell moved, seconded by Bohn, to adopt Resolution #83-3 approving the Assessment Agreement with Energy Controls, Inc. for their project located at 1401 Park Road. All voted in favor and the motion carried. e Approval of Bills Horn moved, seconded by Bohn, to approve the bills for April and May, 1983, as presented. All voted in favor and the motion carried. HRA Minutes May 19, 1983 Page 2 e Review of Housing Needs Survey The results of the recently completed Housing Survey were briefly reviewed and discussed. Martin recommended that no specific action be taken on this item until he had an opportunity to analyze the responses. Martin added that he will be meeting with representatives from HUD and Hennepin County to determine what direction the City should be taking in regards to the establish- ment of housing programs and the use of Community Development Block Grant Funds. Insurance Settlement for Repair of Old Instant Web Building Martin reported on the status of the proposed insurance settle- ment for repair of the area damaged by collapse of a section of roof in the Old Instant Web Building. He explained that only $8,600 would be saved if the interior were not fully restored, since the insurance company applied a 50% depreciation factor to this area if not restored under the HRA's Replacement Cost Coverage. Russell moved, seconded by Horn, to approve full restoration and repair of all damaged areas in the building, since cost savings for only partial restoration were minimal. All voted in favor and the motion carried. e HRA Legal Services Martin reported on the recent change in HRA Legal Services preci- pitated by the appointment of a new City Attorney. He explained that City Attorney, Roger Knutson of the law firm of Grannis and Grannis would be responsible in the future for providing legal assistance to the HRA on routine matters. The law firm of Holmes and Graven will continue to be used for more complex legal mat- ters, since their office specializes in HRA and Tax Increment law. Appointment to HRA Martin reported that Councilwoman Pat Swenson was appointed by the Mayor and Council to fill the expiring term of Chairman Bill Gullickson, effective June 1, 1983. The Commissioners expressed their thanks to Bill Gullickson for his many years of service on the HRA and wished him the best of luck in the future. Request for Broker's Fee-Klingelhutz & Cravens Realtors e Earl Cravens was present to seek an agreement with the HRA that would provide his firm with a brokerage fee if they were to pro- duce a developer for the Downtown Redevelopment Project who would ultimately construct all or a portion of the planned private HRA Minutes May 19, 1983 e P~e3 improvements in the Downtown Core Area in a manner acceptable to the HRA and City Council. He submitted a letter (dated May 18, 1983) which outlined his proposal to be paid a fee by the HRA equal to 5% of all of the land and buildings purchased by the developer in downtown Chanhassen. Gullickson felt that the proposed 5% fee was reasonable and that such an arrangement would have minimal risk from the standpoint of the HRA. Martin recommended against the proposal because he believes that the HRA, through the Executive Director's office, should be seeking project developers, rather than paying a finder's fee for such an effort. He felt that a well coordinated professional marketing campaign developed by the HRA would be the most suc- cessful approach. He expressed concerns about the amount of staff time which might be consumed by a parade of unqualified developers that might be brought to the HRA by a paid broker. e The Commissioners asked Mr. Cravens to present the Executive Director with a proposed legal agreement that outlines this pro- posal in a specific manner. No action was taken on this request although the Commisssioners agreed with the general concept of the proposal. Russell moved, seconded by Bohn, to approve a preliminary authorization for the expenditure of up to $10,000 for prepara- tion of an HRA promotional campaign designed to market the Downtown Redevelopment Project to selected developers. The Executive Director should pursue this with a qualified consultant and conduct a telephone poll of all Commissioners once a firm budget is available for this project. The purpose of the telephone poll is to formalize this preliminary authorization of funds. All voted in favor and the motion carried. New Business Martin reminded the commissioners that the next regular meeting will be the annual meeting, which will include the election of a new Chairman, Vice-Chariman, and Secretary for the next year. Adjournment Horn moved, seconded by Bohn, to adjourn the meeting at 9:30 p.m. All voted in favor and the motion carried. e