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1983 07 21 e MINUTES Chanhassen Housing and Redevelopment Authority Regular Meeting July 21, 1983 CALL TO ORDER -- Vice-Chairman Whitehill called the meeting to order at 7:35 p.m. Present were Commissioners Swenson, Horn, Bohn, Whitehill and Russell. No one was absent. Also present was Executive Director Martin. OATH OF OFFICE - PAT SWENSON New Commissioner Pat Swenson took the Oath of Office of HRA commissioner. ELECTION OF OFFICERS The following Commissioners were nominated and elected to serve as HRA Officers during the 1983-84 HRA year: Bohn moved, seconded by Russell, the nomination of Commissioner Whitehill for Chairman. e Swenson moved, seconded by Bohn, the nomination of Commissioner Horn for Vice-Chairman. Russell moved, seconded by Horn, the nomination of Commissioner Bohn for Secretary. All voted in favor of the above nominations and in favor of the election of each Commissioner to their respective office. APPROVAL OF MINUTES Russell moved, seconded by Whitehill, to approve the minutes of the May 19, 1983 meeting as presented. All voted in favor except Swenson who abstained, and the motion carried. STATUS REPORT OF REFUNDING BOND SALE - TAX INCREMENT BONDS OF 1981 Martin reported that last night the City Council authorized the sale of $5,185,000 in General Obligation Tax Increment Bonds Refunding the Tax Increment Bonds of 1981. The net interest rate on the Refunding Bonds was 9.2%, which will reduce overall HRA debt payments by approximately $517,000. This bond sale also provides for the restructuring of HRA Bonded Debt in a manner which reduces projected deficits during the next five years. e A revised Tax Increment Financing Plan is being prepared to reflect the changes in debt repayment structure, and should be available for HRA review at the August 18, 1983 meeting. No action was required by the HRA on this item. HRA Minutes July 21, 1983 e Page 2 APPROVAL OF LEASES IN OLD INSTANT WEB BUILDING Whitehill moved, seconded by Horn, to approve the proposed lease extension for Animal Fair, Inc., and the new leases with Britt Corporation, Quality Temp, Inc., and Dobbs Temporary Help Services, Inc. for rental of space in the old Instant Web building, as recommended by the 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. DOWNTOWN PROJECT STATUS REPORT Martin reported on the status of the Downtown Redevelopment Project and reviewed items addressed by the Downtown Project Steering Committee at their meeting of July 13, 1983. He reported that Kraus-Anderson is continuing to negotiate with a major supermarket chain who has expressed interest in the Downtown Project. He also advised the HRA that repair work on the damaged area in the old Instant Web building was underway and should be completed within the next several weeks. e Martin presented the Steering Committee's recommendation that the HRA not proceed with the immediate acquisition of the Huber, Havlik, and Riviera properties. Rather, the committee recommends pursuing a one-year option agreement extension with Havlik and Riviera, and advising Huber that the HRA is not interested in acquiring his property at this time. Russell moved, seconded by Horn, to direct the Executive Director to pursue one-year purchase option agreement extensions for the Havlik and Riviera properties, and to negotiate with Huber for a possible contract for deed acquisition of his property. All voted in favor and the motion carried. Martin also reported that the Steering Committee recommends that the City actively pursue partial renovation of the old Instant Web building for community recreational facilities as an alter- native to private redevelopment of the building. Such a project would be financed by City General Obligation Bonds which would require prior voter approval. The HRA members informally endorsed this recommendation, including the establishment of a Recreational Facilities Committee (to be appointed by the Mayor and Council) to help determine the need for various types of facilities and to assist in gaining public support for such a project. ~ The HRA also considered the Steering Committee's recommendation to proceed with partial demolition of the old Instant Web building early next year. Demolition of the Animal Fair portion HRA Minutes July 21, 1983 e pag e 3 of the building, which consists of the "original building" and the single-story, flat roofed addition located immediately to the west, would allow site preparation for first phase retail develop- ment to proceed, and therefore, provide a marketable property for redevelopment. e The HRA endorsed this recommendation and supported the Executive Director's proposal to finance demolition and site preparation costs of approximately $35,000-$40,000 with reprogrammed Community Development Block Grant funds. The proposed marketing campaign to be directed at selected, qualified commercial developers in an effort to obtain developer interest in Downtown Project construction was also discussed by the HRA. Commissioner's Swenson, Horn and Russell felt that the HRA should be seeking competitive bids for this effort from at least three marketing firms. The only proposal which has been submitted for consideration is Kosmo Companies of st. Paul. whitehill reviewed the recommendation of the Steering Committee that any HRA marketing campaign should be flexible enough to also provide promotional materials which could also be used by the Chamber of Commerce in promoting business and industry develop- ment, as well as information to new residents and employees in the City. The HRA felt that a more specific proposal was needed before any final decision could be made on the selection of a marketing firm for this project. Whitehill moved, seconded by Bohn, to authorize the payment of $500 to Kosmo Companies for the development of more detailed marketing campaign strategies and design concepts, for HRA review at a special meeting on either August 2 or 11, 1983. All voted in favor and the motion carried. APPROVAL OF BILLS Russell moved, seconded by Horn, to approve the bills for June and July, 1983, as presented. All voted in favor and the motion carried. NEW BUSINESS: MORTGAGE REVENUE BOND PROGRAM e The HRA expressed interest in encouraging the construction of new housing in the city and directed the Executive Director to look into the establishment of a Mortgage Revenue Bond Program to pro- vide below market rate financing for new construction. Martin felt that a joint program with the Carver County HRA may be feasible if enough interest exists in other communities in the county. He will report back with information on such a program within the next two months. e e e HRA Minutes July 21, 1983 P ag e 4 HOUSING NEEDS SURVEY -- Martin reported that officials from the Department of Housing and Urban Development and Hennepin County had reviewed the results of the recent Housing Needs Survey and determined that the survey results do not support city plans for an assisted elderly housing facility. The City will be required to reprogram approximately $100,000 in CDBG funds from elderly housing site acquisition to other eligible program activities. The HRA will review alter- native program proposals at the August meeting and make recommen- dations to the City Council on the use of available CDBG funds for consideration at a Council Public Hearing tentatively scheduled for August 22, 1983. ADJOURNMENT Bohn moved, seconded by Horn, to adjourn the meeting at 10:00 p.m. All voted in favor and the motion carried.