1983 12 15
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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
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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.
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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.
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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
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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.
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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.