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1983 12 15 . . . Minutes Chanhassen Housing and Redevelopment Authority Regular Meeting December 15, 1983 Call to Order Vice-Chairman Horn called the meeting to order at 7:35 p.m. Present were Commissioners Bohn, Horn, Robbins, and Swenson. Whitehill arrived shortly after the meeting had begun. No one was absent. Executive Director Martin was also present. Oath of Office - Charles Robbins New Commissioner Charles Robbins took the Oath of Office of HRA Commissioner. Approval of Minutes Bohn moved, seconded by Swenson, to approve the minutes of the October 20, 1983 meeting as presented. All voted in favor and the motion carried. Proposed Sale of HRA Property (Parcel #8) located at 7901 Great Plains Boulevard - Public Hearing. Chairman Whitehill opened the Public Hearing for consideration of the purchase offer made by Gary Brown for HRA Parcel #8. Mr. Brown's offer provided for purchase of the property at the HRA appraised value, less an amount equal to 7% of the value of the improvements he constructs on the property. His proposal is to build and operate a three-bay self-service car wash on the site. The City Council approved the project on December 5, 1983. Martin recommended approval of the sale to Brown for a cash price of $16,435, which includes the 7% development incentive. He further recommended that a redevelopment agreement be entered into between Brown and the HRA which spells out the specific terms of the sale. Frank Kurvers, 7220 Chanhassen Road, was present and submitted a purchase offer to the Board for purchase of the property for $19,487. Mr. Kurvers' offer did not include a proposal for development of the property. Martin advised the Board that the Public Hearing notice provided that no other bids or offers for the property would be considered by the Board during the Public Hearing. Therefore, if the Board wanted to consider the Kurvers offer, the HRA Attorney recommends that the Brown offer be rejected, and that the Board advertise the property for sale and/or redevelopment, open to anyone interested in the property. If the Board wishes to accept the Brown offer, the Attorney advised that the Board may do so without further public notice. Swenson moved, seconded by Whitehill, to close the Public Hearing. All voted in favor and the motion carried. Chanhassen HRA Minutes December 15, 1983 Page 2 . Whitehill moved, seconded by Swenson, to approve Resolution #83-8 accepting the purchase offer of Gary Brown for HRA Parcel #8, subject to the recommendations of the Executive Director dated December9, 1983, and authorizing the Executive Director to execute a Redevelopment Agreement to be prepared by the HRA Legal Counsel on behalf of the HRA. All voted in favor and the motion carried. Downtown Project Market Study - Preliminary Report Richard Sollie of James B. McComb & Associates presented a preli- minary report to the Board concerning the retail and office market study his firm is conducting for the Downtown Project area. Mr. Sollie distributed several tables and maps to the Board containing socio-economic data for the Downtown Chanhassen Trade Area. His preliminary findings include market support for 20,000 - 25,000 square feet of new convenience oriented retail space in Downtown Chanhassen by 1985, increasing to a total of 35,000 - 40,000 square feet by 1990. He also explained that a 60,000 - 70,000 square foot Specialty Center housing shops for antiques and arts and crafts produced by Minnesota Artists/Artisans could be developed by 1985. Office space needs appear to be in the 20,000 - 30,000 square foot range by 1985, with an additional 50,000 - 75,000 square feet of new office space needed by 1990. His study of the market potential for a downtown full-service supermarket is still underway, so no conclusions have been reached as yet. . The Board briefly discussed the consultant's preliminary findings but took no action. The final study will be presented at the January, 1984 meeting. Downtown Redevelopment Project - Presentation by JLH Associates/ Historical Development Corporation Mr. Jack Henning and Mr. Bill Howard, representing JLH Associates and Historical Development Corporation respectively, were present to express their interest in developing the Downtown Project. Their proposal provides for phased construction over a three to five year period, with first phase construction including the renovation of approximately 50,000 square feet of the old Instant Web building, including a 24 lane Bowling Center and construction of 20,000 square feet of new retail space on the Instant Web site. They are also negotiating with a major supermarket tenant and hotel owner interested in the project area. The developers requested a 120 day period of exclusive negoti- ation rights within the Downtown Core Area so that financing and tenant committments could be arranged. . Their proposal would allow for the phasing of planned Downtown public improvements and includes a tentative request for Industrial Revenue Bond financing for the project. Martin explained that the Board has received very limited infor- mation from the prospective developers, and felt that approval of exclusive negotiation rights at this time may be premature. Chanhassen HRA Minutes · December 15, 1983 Page 3 e Whitehill asked the developers to submit more information con- cerning their development experience and more specific plans for their proposal. The Board took no action on the developer's request for a special meeting in early January and for exclusive negotiation rights within the Downtown Project Area. The Board suggested that the developers submit a comprehensive proposal for consideration by the Board during the January 26, 1984 meeting. status Report on Community Recreational Facilities Committee Work Program Don Ashworth, City Manager, presented a brief status report on the progress made to date by the Community Recreational Facilities Committee in their study of the potential for public reuse of the old Instant Web Building. He explained that the Committee has been meeting regularly since the end of August, and reviewed several options for reuse of the building. The Committee has met with the parties interested in developing the Bowling Center with JLH Associates, and generally feel comfortable with such a use developed in conjunction with public recreational facilities. e Ashworth said that the Committee will likely meet with the prospective Downtown Project Developers in January and make their recommendation to the Council as to whether the development of a public recreation center should be pursued. The Board thanked the City Manager for the status report and asked that they be kept abreast of the Committee's future progress. Extension of Leases in Old Instant Web Buil~ing Horn moved, seconded by Swenson, to approve a four-month exten- sion of leases with Animal Fair, Inc., Britt Corporation, and Quality Temp, Inc. for rental of space in the old Instant Web Building subject to continuation of the same terms and conditions for each respective lease. All voted in favor and the motion carried. Amendment to Resolution #83-5 - HRA Fund Transfers Whitehill moved, seconded by Horn, to approve the Auditor's recommended amendment to HRA Resolution #83-5 clarifying the fund transfers required for HRA bonded debt in accordance with Exhibit 3 of the recently adopted Tax Increment Financing Plan. All voted in favor and the motion carried. e . . . Chanhassen HRA Minutes December 15, 1983 Page 4 Administrative Services for Section 8 Rent Assistance Program (Resolution #83-7) Horn moved, seconded by Whitehill, to approve Resolution #83-7 authorizing the Carver County Housing and Redevelopment Authority to provide local administrative services for the Existing Section 8 Rent Assistance Program. All voted in favor and the motion carried. Set January Meeting Date Horn moved, seconded by Bohn, to set the next regular meeting date for Thursday, January 26, 1984. All voted in favor and the motion carried. Old Business Martin reported that approximately $4,400 in rental income has been received for seasonal RV storage (60 units) in the old Instant Web Building. New Business Approval of Austad Construction Company Lease in Old Instant Web Building Bohn moved, seconded by Horn, to' approve the proposed three month lease with Austad Construction Company for rental of 500 square feet 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. Bids for Snow Removal from Old Instant Web Building Roof Bohn moved, seconded by Horn, to authorize the Executive Director to obtain bids for the removal of snow and ice from the steel roof section of the old Instant Web Building and to accept the lowest qualified bid so that work could begin as soon as possible in order to prevent potential structural damage to the building and its contents. All voted in favor and the motion carried. Approval of Bills Whitehill moved, seconded by Bohn, to approve the bills for November and December, 1983, as submitted. All voted in favor and the motion carried. Adjournment Horn moved, seconded by Bohn, to adjourn the meeting at 10:40 p.m. All voted in favor and the motion carried.