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1983 08 18 MINUTES CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING AUGUST 18, 1983 e CALL TO ORDER -- Chairman Whitehill called the meeting to order at 7:40 p.m. Present were Commissioners Swenson, Horn, Bohn, Whitehill and Russell. No one was absent. Also present was Executive Director Martin. APPROVAL OF MINUTES Russell moved, seconded by Whitehill, to approve the minutes of the July 21, 1983 meeting as presented. All voted in favor and the motion carried. DOWNTOWN PROJECT MARKETING CAMPAIGN STRATEGIES: KOSMO COMPANIES Ladd Conrad of Kosmo Companies presented proposed Downtown Project Marketing Campaign strategies and some graphic design ideas for both Downtown Project and Chamber of Commerce promo- tional materials. Conrad estimated that Marketing Program develop- ment costs from his firm would probably be somewhere between $4,000 - $7,000. He was unable to provide the Board with an estimated cost for printing and photo work since the number of copies desired by the Chamber has not been determined and the number of pages to be included in Downtown Project promotional materials is unknown at this time. e Following the review and discussion of Kosmo Companies presen- tation, Swenson moved, seconded by Horn, to temporarily table this item until later in the meeting. All voted in favor and the motion carried. Commissioner Horn left the meeting at this time (9:30 p.m.) REVIEW OF PROPOSED 1984 HRA OPERATING BUDGET -- Executive Director Martin presented his recommended 1984 Operating Budget for preliminary review by the Board. Included with his presentation were future long-term revenue and expen- diture projections developed with the assistance of BRW (revenue) and DeLaHunt Voto and Company, which have been included in the proposed "Tax Increment Financing Plan". Martin noted that 1984 Tax Increment receipts were projected to increase by approximately 50 percent over 1983. However, expenses were also up substantially due primarily to projected opera- tional and maintenance expenses of nearly $70,000 for the old Instant Web Building. e He recommended that no formal action be taken on the proposed 1984 Budget until the savings from the recent refunding bond sale were plugged into the Tax Increment Financing Plan. HRA Minutes August 18, 1983 Page 2 e The Commissioners briefly discussed the proposed budget, but took no action to approve or modify it. Final review and approval of the 1984 Budget will be scheduled for the September 15, 1983 meeting. REPROGRAMMING OF CDBG FUNDS -- Martin presented a list of eligible program activities and several recommendations for reprogramming of $105,417 in Community Development Block Grant (CDBG) funds previously set aside for senior citizen housing site acquisition. The recent HRA Housing Needs Survey failed to justify the use of CDBG funds for this purpose. Commissioner Swenson recommended that funds be allocated for a broad-based general retail market study in addition to the pro- posed funding for the Downtown Project Marketing Plan. She felt that prospective developers may require such a study, since the Retail Systems Supermarket Study is rather narrow in scope. Commissioner Whitehill expressed strong support for the proposed Housing Rehabilitation Grant Program. e Whitehill moved, seconded by Bohn, to recommend that Year VII, VIII, and IX CDBG funds currently allocated to Senior Citizen Housing Site Acquisition be reprogrammed by the City Council as follows: 1. Land Clearance and Site Preparation 2. Downtown Project Marketing Plan 3. Housing Rehabilitation Program $45,000 20 , 000 40 , 41 7 All voted in favor and the motion carried. DOWNTOWN PROJECT LAND ACQUISITION Martin reported on the status of negotiations for one-year exten- sions to the Chanhassen Tire and Auto and Riviera Supper Club Purchase Option Agreements. He advised the Board that both par- ties had rejected the HRA's original offer of a lump sum cash payment not applied to the purchase price in exchange for the one-year option extension. John Havlik of Chanhassen Tire and Auto was present to express his interest in maintaining some form of option agreement with the HRA during the next year and offered to negotiate further for the option extension if the option agreement included the addi- tional $11,000 relocation benefit earlier promised by the HRA if he rebuilds within the Tax Increment District. He also said that he would be willing to negotiate the amount paid for the option extension. e HRA Minutes August 18, 1983 Page 3 e Martin recommended that acquisition negotiations be suspended with owners of the properties currently under option and that the options be allowed to expire as of September 1, 1983. He also recommended that the HRA not pursue acquisition of these proper- ties or the Huber Property {Project Parcel #26} until such time as a firm private development committment is received for Phase One Downtown Project Construction, and the HRA's ability to fund each acquisition is assured. Whitehill moved, seconded by Swenson, to suspend acquisition negotiations for the Huber, Chanhassen Tire and Auto, and Riviera Supper Club properties until such time as a firm private develop- ment committment is received for Phase One Downtown Project Construction. All voted in favor and the motion carried. Whitehill reaffirmed the position of the HRA to pay Mr. Havlik an additional $11,000 in relocation benefits should he rebuild his business within the Tax Increment District following future HRA acquisition of his property. REQUEST FOR FUNDS: SPECIAL DINNER MEETING WITH GOVERNMENTAL OFFICIALS e Martin presented a request by the City Manager for HRA funding of a special dinner meeting to be hosted by the City for State, Local, and Regional Governmental Officials. He advised the Board that HRA funding of business promotional activities such as this is a legitimate use of Tax Increment funds according to legal counsel, and recommended approval of the City Manager's request up to a maximm expenditure of $1,000. Whitehill moved, seconded by Bohn, to approve funding of up to $1,000 for the proposed special dinner meeting subject to the preparation of a meeting agenda and formal presentation to insure that the meeting is focused on economic and business development issues important to Chanhassen. The HRA must also review and approve the meeting agenda and presentation prior to the special meeting. All voted in favor and the motion carried. DOWNTOWN PROJECT MARKETING PLAN Whitehill moved, seconded by Swenson, to direct the Executive Director to secure at least three {3} proposals from qualified advertising agencies {including Kosmo Companies> for the develop- ment of a professional marketing program for the Downtown Redevelopment Project and the Chanhassen Chamber of Commerce. Qualified agencies should present their proposal at the September 15 meeting. All voted in favor and the motion carried. e e HRA Minutes August 18, 1983 P ag e 4 OLD BUSINESS KRAUS ANDERSON/SUPERMARKET NEGOTIATIONS Martin reported that he had been advised by Dennis Spalla of Kraus Anderson within the last week that the major supermarket chain which they were negotiating with had decided not to locate in Chanhassen in the near future. Spalla indicated that no other negotiations were underway with other supermarket interests, nor did he have any reasonable expectations that any supermarket would be interested in the Downtown project during the next year or two. RAILROAD CROSSING IMPROVEMENT PROJECT Martin reported that the planned railroad crossing improvement project on West 78th Street which is partially funded by the HRA (estimated $4,000) will not begin construction until later this fall according to the County Engineer. Completion of this pro- ject is scheduled for next spring. CERA FLEA MARKET e Martin reported that he has authorized the Chanhassen Estates Residents Association to use the old Instant Web parking lot for a Flea Market scheduled for August 28, 1983. BOWLING CENTER MARKET STUDY Martin reported that he has contacted both AMF and Brunswick regarding our potential interest in developing a bowling center in the old Instant Web Building. He was advised that AMF does not conduct market analysis studies for new bowling centers, but did receive a proposal from Brunswick to do a market study at a cost of $1,200. He requested funding for such a study and authorization to contract with Brunswick. Whitehill felt that a Bowling Center Market Study should be included as part of the broader-based retail market analysis study proposed earlier this evening during CDBG reprogramming discussions. He also preferred to delay any decision on funding for a Bowling Center Study until the recently established Community Recreational Facilities Committee has met to consider the desirability of a bowling center as part of the proposed com- munity center. He added that the Recreational Facilities Committee should be advised at their first meeting (August 31) that the HRA will give their full support to their study efforts. e -- e e HRA Minutes August 18, 1983 Page 5 NEW BUSINESS APPROVAL OF LAKE PRODUCTS, INC. LEASE IN OLD INSTANT WEB BUILDING Swenson moved, seconded by Bohn, to approve the proposed six- month lease with Lake Products, Inc. (Mid-America Golf Supply) for rental of storage space in the old Instant Web Building at a rate of $1.75 per square foot, and to authorize the Chairman and Executive Director to execute said lease on behalf of the HRA. All voted in favor and the motion carried. RENTAL OF OLD INSTANT WEB BUILDING FOR SEASONAL BOAT STORAGE - - Commissioner Whitehill requested the Executive Director to explore the potential for renting space in the old Instant Web Building for seasonal boat storage. Martin explained that a ramp would need to be constructed in order to allow for drive-in access into the warehouse section of the building, which could be rather costly. He agreed to pursue this idea and report back at the next meeting. APPROVAL OF BILLS Whitehill moved, seconded by Swenson, to approve the bills for August, 1983, as presented. All voted in favor and the motion carried. ADJOURNMENT Bohn moved, seconded by Russell, to adjourn the meeting at 10:50 p.m. All voted in favor and the motion carried.