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3 Chanhassen CinemaCITY OF STAFF REPORT PC DATE: 5-5-99 CC DATEi 5-24-99 CASE #: 95-21 SPR By: A1-Jaff:v PROPOSAL: LOCATION: APPLICANT: 1) Site Plan Review to demolish the existing Chanhassen Bowl/Filly's building and construct 8 movie screens and a retail element -. Variances to allow Non-Street Frontage Signs and Hard Surface Coverage North of the railroad tracks and Pauly Drive, East of Market Boulevard and south of Country Suites Chanhassen Properties, LLC 5300 Highland Greens, Suite 200 Bloomington, MN55437 Attn.: Mr. Bob Copeland (612)832-5302 PRESENT ZONING: AC REAGE: DENSITY: ADJACENT ZONING AND LAND USE: WATER AND SEWER: PHYSICAL CHARACTER.: 2000 LAND USE PLAN: BG, General Business District Approximately 2.617 acres N/A N - CBD, Central Business District S - CBD, Central Business District E - CBD, Central Business District W - PUD, Planned Unit Development/Market Square Available to the site. Generally a level parcel with an existing building and parking lot. Commercial le-I ~.ket~ ,°/l/E/J~qJ~N Chanhassen Cinema May 5, 1999 Page 2 PROPOSAL/SUMMARY The applicant is proposing to demolish the existing Chanhassen Bowl/Filly's building and construct 8 movie screens and a retail element. The site is located north of the railroad tracks and Pauly Drive, east of Market Boulevard, west of the Frontier Building and South of West 78th Street and Country Suites Hotel. The site is zoned BG, General Business District and has an area of approximately 6.3 acres including the existing Cinema and the parking lot surrounding the site which is owned by the City (or 2.617 acres when calculating the cinema and retail addition and parking area immediately adjacent to the proposed addition). The site is fairly level with an existing building, parking lot, and bus shelter. It is guided commercial. The City's vision for this area has always been entertainment. In 1996, the City reviewed a proposal to remodel the Bowling Alley/Filly's building and the Frontier Building into an Entertainment Center which was proposed to include eight movie theaters, Pauly's Sports Bar and Restaurant, the bowling alley, some retail stores and restaurants. The project was proposed to be constructed as an Entertainment Complex. Shortly after, the City approved phasing of the project since not all parties were ready to proceed. The first phase included the construction of an eight screen movie theater. The second phase was the remodeling of the Frontier Building. Since then, the project has been at a stand still. The applicant is proposing a new concept that has some elements of the original plan. The proposal calls for demolishing the entire building located west of existing Chanhassen Cinema, expanding the number of movie screens to 16 and adding 9,000 square feet of retail space. Theaters are a permitted use in the district and staff recognizes and supports the importance of the entertainment element brings to the downtown. The new concept is attractive in some areas, however, changes could be made to improve it further. The original plan reflected a boardwalk surrounding the entertainment center. This element has been modified by providing a plaza instead of an elevated boardwalk. The boardwalk served two functions. The first was to allow pedestrian traffic to move around the building without interference with vehicular traffic. The second purpose was the fact that this boardwalk was elevated approximately six feet helped disguise the height of the building. A railing surrounds the existing cinema boardwalk. This railing is being reintroduced along the south elevation. The theme of decorative light fixtures that are currently being used at the cinema are carried into this portion of the project. Staff had several meetings with the applicants and their architect to give them some direction with regards to the design of the project. Staff's main concern was the required massiveness of the theaters. Several suggestions were made to help the applicant with the design. The building of a movie theater only was strongly discouraged as this area is envisioned to be a gathering place for entertainment. We explained the concept of providing additional activities in the area that would complement a movie theater i.e., restaurants, boutiques, coffee shops, book stores, deli, etc., would support the vision for this area. The applicant responded by adding the retail element along the Chanhassen Cinema May 5, 1999 Page 3 west portion of the building. This element addressed two concerns. It provided for the variety of activities and helped disguise the west wall. The second issue dealt with architectural features and materials. Staff explained that the architectural features would have to be functional i.e., fake doors are prohibited, fake windows must resemble actual windows, etc. The applicant has introduced these elements into the design such as second story windows. Materials on the building comprise ofprecast panels, brick, stucco, and rock face block. The precast panels comprise the majority of the cinema elevation. This is the same material which is used on the existing building. This building falls within the Highway 5 overlay district and is required to use high quality materialS. The applicant can upgrade the precast panels to another material that is of a higher quality and improved appearance. Canvas awnings define entrances into the retail portion of the building. The retail building reflects duplication in the design of the retail elements of the building which is typical in most suburban strip malls. The design can easily be modified and improved by modifying some of the elements within the west elevation. The applicant is proposing to change the color of the existing cinema by painting it a darker color and matching the color to the new addition. The columns along the south wall, which project two inches, are proposed to be duplicated on the new cinema addition. The Hwy. 5 corridor district requires higher quality architectural detail and material. It also requires visual interest through variation in detail, and form. It is staff's opinion that the two inch columns do not provide enough variation. The applicant is aware of this issue and has expressed that he has no objection to increasing the projection of these columns. Trash enclosure is proposed along the west elevation. The cinema and retail buildings are proposed to be separated by an alley. The width of the alley is approximately 10 feet and is proposed to be used as a service corridor for the retail building and exit point for cinema. The walls are proposed to utilize concrete block and be illuminated. From an esthetic standpoint, staff recommends the alley either be widened and made into a user friendly corridor or eliminated. The narrative submitted by the applicant indicates that "the view through the services corridor from the south side will be screened with coniferous landscaping and an upper archway will help to tie the buildings together and screen the corridor." The plans should reflect the coniferous landscaping proposed for screening. From a building code standpoint, the Building Official had the following comment "If the proposed retail building and the cinema addition are on the same piece of property, the walls adjoining each building must be of 1-hour fire resistive construction. If there is a property line between the retail building and the cinema building, the walls still need to be of 1-hour fire resistive construction and openings in those walls must be protected with a fire resistive assembly of h-hour. This is assuming a minimum often feet between the buildings as it scales on the plan. If the space between the buildings is less than ten feet, openings (doors etc.) would not be permitted." The second issue raised by the Building Official related to the use, size and type of construction. "The maximum allowable building area for the cinema is approximately 36,000 square feet based on type II-N construction and the proximity to adjoining property lines. The proposed addition would create a building of Chanhassen Cinema May 5, 1999 Page 4 approximately 46,000 square feet which is larger than is permitted for type II-N construction. (The existing cinema is type II-N.)" The entrance into the theater is being moved to the south. This will provide for a prominent presence for the theaters. The design of the marquee sign is festive and towering. The wording "CHANHASSEN CINEMA" appears on four locations on the marquee sign. Staff believes this wording to be redundant and would recommend it be redesigned. Three rows of lights appear on the marquee sign. These lights are described as "NO CHASER." The marquee also incorporates exposed neon on the tower portion of the sign. The only color information available on the marquee sign is the cabinet painted green and the letters on the cabinet are white. The westerly portion of the proposed cinema expansion incorporates wall signs that advertises the names of movies, time and rating. This element is utilized as an architectural feature to break up the wall. It mimics the window located above the entrance into the existing cinema building. Staff has always encouraged the display of the titles of the movies on the exterior of the building, however, we question the size of these display areas. Also, the applicant is proposing to use five lines per four openings of electronic static reader boards to accommodate the titles. The letters will be illuminated with red led. Motion Reader Boards require a conditional use permit. The applicant explained that these letters will be motionless. The reader board will be updated Once a week. Under this description, it can be classified as a changeable letter sign, eliminating the need for the conditional use permit. The architectural detailing established through the multiple building elevations is reminiscent of earlier downtowns. One of these elements is the poster boards movie theater promotion. The proposed reader boards though efficient are not nostalgic. Staff recommends this element be modified. The overall signage on the building is proposed to be individual channeled backlit letters. All letters are proposed to maintain a consistent metal surrounding the color. The metal is proposed to be bronze. The plans fail to address logos which is a common request accompanying signs. With the proposed signage, staff is concerned that this will give the building an ordinary appearance resembling any other strip mall. The applicant is strongly encouraged to introduce the type of signage that reflects an old town theme (directory and projecting signs) and allowing the signs to become an architectural feature that complements the design of the building. Such signage will require a variance. The current sign ordinance does not permit signs such as directory and projecting signs. These types of signs would enhance and compliment the architecture of the building. Awnings are proposed along the retail portion of the building. The narrative states that the use ofbacklit awnings or vinyl awnings are prohibited; however, the landlord encourages unique canopy styles and colors for variety. Signage may be located in designated facade areas only. The entrance into existing cinema is proposed to be modified. The existing marquee sign is proposed to be removed and a backlit individual letter sign is proposed to take its place. The entrance is proposed to be framed with canvas awnings and the space renovated into either an office or retail space. The window above the old entrance is proposed to be upgraded by adding a new EIFS cornice protrusion. Chanhassen Cinema May 5, 1999 Page 5 Site access is provided via existing Pauly Drive and a curb cut on Market Boulevard. Internal access is a somewhat more complicated situation. The proposed parking lot configuration poses some problems. The applicant is proposing to redesign the parking area. There are two existing driveways off of Pauly Drive and one from Market Boulevard. Pauly Drive is a city street with a 50-foot wide right-of-way. The street for the most part deadends at the easterly curbcut to the entertainment complex. However, there is a gravel surface which serves as an access road to the dinner theater and scene building, and Great Plains Boulevard. This access must be maintained and incorporated into the parking lot design to maintain access to the east to the dinner theater and Great Plains Boulevard. Cross access easements and maintenance agreement for parking should be prepared by the applicant for each business to access the site and utilize the parking lots. According to the traffic report generated by Benshoof & Associates, Inc. dated November 11, 1998 and supplementary comments to that report dated November 18, 1998, it recommended that an unimpeded corridor (east/west) road be constructed to provide adequate traffic movements to and from the site. Based on the traffic report with this type of use, traffic will experience significant delays at the intersection of Pauly Drive and Market Boulevard (Level F). The supplementary comments to the traffic report indicated that a second option would be to provide an east/west street with parking provided on one or both sides. The second option also indicated the main benefit is to only increase the availability of parking stalls. This option does not provide the level of traffic safety desired or necessary with this development. Staff strongly recommends that an unimpeded east/west connector street from Market Boulevard to Great Plains Boulevard should be required to adequately service the cinema complex as well as future land use development east of the site. Attached is an example of staffs recommendation for an east/west connection. Parking shall be prohibited on both sides of the east/west street. The ' minimum drive aisle width should be 28 feet, face-to-face. The site on which this building is situated is a highly visible one and will likely become one of the most important areas in the Chanhassen CBD. Since the opening of the Cinema and future development of the new theaters and the retail element, this area is envisioned to be one of the most frequented and busy portions of downtown. According to City Code Section 20-1118, drive aisle widths between two rows of parking shall be a minimum of a 26 feet. Some of the drive aisles proposed do not meet this and will need to be modified to comply with city ordinance. Staff is also concerned about the turning radiuses for emergency vehicles. The applicant's engineer/site planner will need to increase radiuses and/or drive aisle widths to accommodate fire apparatus vehicles. This may also result in the loss of additional parking stalls. Staff recommends that the main drive aisle areas be 28 feet wide with a minimum 20~foot wide radiuses at the intersections. Traffic control will also be an issue. The applicant will need to prepare a revised traffic signage plan for staff to review and approve prior to issuance of a building permit. Chanhassen Cinema May 5, 1999 Page 6 A second issue deals with the number of parking spaces proposed on the plan. The ordinance requires one parking space per four seats. The applicant is proposing 2,800 seats which translates to 700 parking spaces. The applicant is providing 539 spaces. According to a parking study prepared by Hoisington Koegler Group, there will be sufficient parking for 2,400 seats. The applicant is proposing 400 seats. This study also included a 6,000 square foot restaurant which would have required 100 parking spaces, more than the Hoisington Koegler study. The applicant replaced the restaurant with 9,000 square feet of retail space which requires 45 parking spaces only. In summary, staff is concerned that at peak times for example during the holiday season there will be a parking shortage. Staff has debated the merits of over parking for this area when the shortage will occur for a very limited time period. The site landscaping is an added improvement. The plan has a deficit of plantings in the following areas: north, south and west buffer yards. Staff recommends that the applicant increase plantings in order to meet minimum ordinance requirements. We also recommend additional trees be added along the south and west portion of the site (within the plaza). The applicant is proposing to use flower boxes/planters. Through previous discussions with the applicant, the possibility of using the planters to also function as benches was introduced. There is mention of added benches and streetscape elements in the narrative. The plans need to reflect these elements. In some respects, the site plan does not meet all current ordinance standards. Although some areas are proposed to be redeveloped, others such as the parking lot is proposed to be modified. It exceeds the hard surface limit and the parking setbacks requirements. With this proposal, the applicant is attempting to increase the green space on the site by adding landscape islands to the parking lot. The General Business District allows a maximum hard surface coverage of 70%. The applicant is proposing 95% hard surface coverage. Staff is willing to work with the applicant to maximize the usable space on the site. This number could change once modifications to the site plan have been made. The Economic Development Authority reviewed this application on January 28, 1999. The minutes of that meeting reflect that they wanted the Planning Commission to be aware that the project is receiving TIF assistance. The site is located in the Highway 5 overlay district which requires higher architectural standards and materials. The use of TIF should provide for standards beyond those required by the Highway 5 overlay district (architectural design, materials, etc.). The city is involved in the project and do expect it to meet the city's high quality. Development is proposed over a number of outlots and lots. Replatting of the property into a single lot and block or multiple lots and blocks is required. The applicant is aware of this issue and has paid the fee for the subdivision but chose not to submit a plat until the site plan has been Chanhassen Cinema May 5, 1999 Page 7 approved. This statement is based upon conversation staff had with the applicant. If the applicant decides to locate both buildings on one lot, a conditional use permit will be required to allow multiple buildings on a single lot. Park and trail fees will be required. The issues raised in the proposal summary may change the plans significantly, hence, we can not recommend approval of this application at this time. Staff recommends the applicant addresses the issues outlined in this report prior to site plan approval. SITE PLAN REVIEW General Site Plan/Architecture The applicant is proposing to demolish the existing Chanhassen Bowl/Filly's building and add on 8 additional movie screens and a retail element. The site is located north of the railroad tracks and Pauly Drive, east of Market Boulevard, west of the Frontier Building and South of West 78th Street and Country Suites Hotel. The site is zoned BG, General Business District and has an area of approximately 6.3 acres including the existing Cinema and the parking lot surrounding the site which is owned by the City (or 2.617 acres when calculating the cinema and retail addition and parking area immediately adjacent to the proposed addition). The site is fairly level with an existing building, parking lot, and bus shelter. It is guided commercial. The proposal calls for demolishing the entire building located west of existing Chanhassen Cinema, expanding the number of movie screens to 16 and adding 9,000 square feet of retail space. The new concept is attractive in some areas, however, changes could be made to improve it farther. There are two main elevations, south and west. The applicant is proposing to utilize precast panels, brick, stucco, and rock face block. The cinema addition facade is comprised of mainly precast panels to duplicate the material used on existing cinema. The proposal calls for changing the color of the existing cinema by painting it a darker color and matching the color to the new addition. The columns along the south wall, which project two inches, are proposed to be duplicated on the new cinema addition. This building falls within the Highway 5 overlay district. This district requires higher quality architectural detail and material. It also requires visual interest through variation in detail, and form. It is staff's opinion that the two inch columns do not provide enough variation. The applicant is aware of this issue and has expressed that he has no objection to increasing the column projection. This projection needs to be increased to resemble an actual column and provide the necessary architectural relief. Staff also recommends the precast panel material be upgraded to another material of a higher quality. The new entrance into the theater is framed by two brick columns. The old entrance is proposed to be abandoned and renovated into another office space or retail. The existing marquee sign is proposed to be removed and replaced with backlit channeled letters sign. A new canvas awning Chanhassen Cinema May 5, 1999 Page 8 will frame the old entrance. The window above the old entrance is proposed to be improved by adding a new EIFS cornice protrusion to give it more of a window appearance. The retail portion of the building utilizes brick, stucco and rockface block. It incorporates varying facade designs. The only concern on this elevation deals with the duplication of the design of the store fronts. This can easily be addressed by modifying the design to reflect new architectural elements. Canvas awnings define entrances into the retail portion of the building. The retail element addresses two concerns. It provided for the variety of activities and helps disguise the west wall. A railing surrounds the existing cinema boardwalk. This railing is being reintroduced along the south elevation. The theme of decorative light fixtures that are currently being used at cinema are carried into this portion of the project. A sidewalk surrounds the new addition and is proposed to function as a place for pedestrian movement and outdoor eating opportunities. The cinema and retail buildings are proposed to be separated by an alley. The width of the alley is approximately 10 feet and is proposed to be Used as a service corridor for the retail building and exit point for cinema. The walls are proposed to utilize concrete block and be illuminated. From an esthetic standpoint, staff recommends the alley either be widened and made into a user friendly corridor or eliminated. The narrative submitted by the applicant indicates that "the view through the services corridor from the south side will be screened with coniferous landscaping and an upper archway will help to tie the buildings together and screen the corridor." The plans should reflect the coniferous landscaping proposed for screening. The entrance into the theater is being moved to the south. This will provide for a prominent presence for the theaters. The design of the marquee sign is festive and towering. The wording "CHANHASSEN CINEMA" appears on four locations on the marquee sign. Staff believes this wording to be redundant and would recommend it be redesigned. Three rows of lights appear on the marquee sign. These lights are described as "NO CHASER." The marquee also incorporates exposed neon on the tower portion of the sign. The only color information available on the marquee sign is the cabinet painted green and the letters on the cabinet are white. The westerly portion of the proposed cinema expansion incorporates wall signs that advertises the names of movies, time and rating. This element is utilized as an architectural feature to break up the wall. It mimics the window located above the entrance into the existing cinema building. Staff has always encouraged the display of the titles of the movies on the exterior of the building, however, we question the size of these display areas. Also, the applicant is proposing to use five lines per four openings of electronic static reader boards to accommodate the titles. The letters will be illuminated with red led. Motion Reader Boards require a conditional use permit. The applicant explained that these letters will be motionless. The reader board will be updated once a week. Under this description, it can be classified as a changeable letter sign, eliminating the need for the Chanhassen Cinema May 5, 1999 Page 9 conditional use permit. The architectural detailing established through the multiple building elevations is reminiscent of earlier downtowns. One of these elements is the poster boards movie theater promotion. The proposed reader boards though efficient are not nostalgic. Staff recommends this element be modified. In some respects, the site plan does not meet all current ordinance standards. Although some areas are proposed to be redeveloped, others such as the parking lot is proposed to be modified. It exceeds the hard surface limit and the parking setbacks requirements. With this proposal, the applicant is attempting to increase the green space on the site by adding landscape islands to the parking lot. The General Business District allows a maximum hard surface coverage of 70%. The applicant is proposing 95% hard surface coverage. Staff is willing to work with the applicant to maximize the usable space on the site. This number could change once modifications to the site plan have been made. The applicant is not showing the roof top equipment on the building, however, it is stated in the narrative that all roof top equipment will be screened by parapet walls. Such must be shown on the plans. All roof top equipment must be screened from views. A trash enclosure is located along the west side of the building. The exterior material for the structure is proposed to be rockface block. The doors are proposed to be made of stained wood. Signage on this building will require a variance. The current sign ordinance specifically states that signs are pennitted on buildings with a street frontage. The building has no direct frontage onto a public right-of-way. Staff is recommending approval of the sign variance. Landscal~im, Minimum requirements for landscaping include 5,563 sq. ft. of landscaped area around the parking lot, 22 trees for the parking lot, and bufferyard plantings along Pauly Drive, Market Blvd., as well as neighboring property lines. Applicant's proposed landscaping as compared to the requirements for landscape area and parking lot trees is shown in the following table. For the purpose of landscape area calculations, city property has been included in the totals. Phase I Vehicular use landscape area Trees/Phase I parking lot Market Boulevard trees (1 per 30 feet) South bufferyard A - 20' (75% of total shown) Required 5,563 sq. ft. 22 overstory + 12 landscape islands 6 overstory 4 overstory trees 4 understory trees 8 shrubs Proposed > 5,563 sq. ft. 29 overstory + 12 landscape islands 6 overstory 7 trees Chanhassen Cinema May 5, 1999 Page 10 West bufferyard B - 20' (75% of total shown) North bufferyard B (75% of total shown) 5 overstory trees 8 understory trees 13 shrubs 2 overstory trees 4 understory trees 6 shrubs No plantings proposed 1 overstory tree 10 understory trees Applicant has a deficit of plantings in the following areas: north, south and west buffer yards. Staff recommends that the applicant increase plantings in order to meet minimum ordinance requirements. Some of the existing plant materials are in poor condition, but have been counted for parking lot, boulevard and bufferyard totals. Staff recommends that the applicant replace all existing dying trees. Ifapp!icant refuses to do so, new landscaping calculations will be necessary. Li~hfin~ The only light fixtures shown on the plan include three fixtures along the south elevation that match those on the boardwalk of existing Chanhassen Cinema. Si~na~e Signage is intended to advertise as well as enhance the architecture of the building. The applicant is proposing back lit channeled letters on a designated area of the retail portion. All letters are proposed to maintain a consistent bronze metal surrounding color. The proposal does not address logos. The city can apply the logo criteria outlined in the ordinance. Also, Section 20-1303. states "Highway, general business districts and central business districts. Wall business signs. Wall business sign shall be permitted on street frontage for each business occupant within a building only." Staff is in favor of approving the variance. We strongly believe that the applicant should be able to advertise the business. The entrance into the theater is being moved to the south. This will provide for a prominent presence for the theaters. The. design of the marquee sign is festive and towering. The wording "CHANHASSEN CINEMA" appears on four locations on the marquee sign. Staff believes this wording to be redundant and would recommend it be redesigned. Three rows of lights appear on the marquee sign. These lights are described as "NO CHASER." The marquee also incorporates exposed neon on the tower potion of the sign. The only color information available on the marquee sign is the cabinet painted green and the letters on the cabinet are white. The westerly portion of the proposed cinema expansion incorporates wall signs that advertises the names of movies, time and rating. This element is utilized as an architectural feature to break up Chanhassen Cinema May 5, 1999 Page 11 the wall. It mimics the window located above the entrance into the existing cinema building. Staff has always encouraged the display of the titles of the movies on the exterior of the building, however, we question the size of these display areas. Also, the applicant is proposing to use five lines per four openings of electronic static reader boards to accommodate the titles. The letters will be illuminated with red led. Motion Reader Boards require a conditional use permit. The applicant explained that these letters will be motionless. The reader board will be updated once a week. Under this description, it can be classified as a changeable letter sign, eliminating the need for the conditional use permit. The architectural detailing established through the multiple building elevations is reminiscent of earlier downtowns. One of these elements is the poster boards movie theater promotion. The proposed reader boards though efficient are not nostalgic. Staff recommends this element be modified. The narrative states that the use ofbacklit awnings or vinyl awnings are prohibited; however, the landlord encourages unique canopy styles and colors for variety. Signage may be located in designated facade areas only. Sign Variance The intent of the sign ordinance is to establish standards which permit businesses a reasonable and equitable opportunity to advertise their name and service while promoting public safety and enhancing the image of the community. In addition, the ordinance provides standards to ensure that signage is an integral component of the building's architecture. Granting variances should only be permitted when it enhances the image of the building. FINDINGS The Plarming Commission shall not recommend and the City Council shall not grant a variance unless they find the following facts: ao That the literal enforcement of this chapter would cause undue hardship. Undue hardship means that the property cannot be put to reasonable use because of its size, physical surroundings, shape or topography. Reasonable use includes a use made by a majority of comparable property within 500 feet of it. The intent of this provision is not to allow a proliferation of variances, but to recognize that there are pre-existing standards in this neighborhood. Variances that blend with these pre-existing standards without departing downward from them meet this criteria. Finding: Granting the variance will allow the businesses to advertise their products. The design and location of the sign should become an integral part of the architecture. bo The conditions upon which a petition for a variance is based are not applicable, generally, to other property within the same zoning classification4 Chanhassen Cinema May 5, 1999 Page 12 Finding: The conditions upon which the Variance is based are not applicable to other properties with the BG, General Business District. The location of the building is driving the request. Co The purpose of the variation is not based upon a desire to increase the value or income potential of the parcel of land. Finding: The purpose of the variation does not appear to be based upon a desire to increase the value of the parcel. d. The alleged difficulty or hardship is not a self-created hardship. Finding: The alleged hardship is not a self-created hardship, again, it is the location of the building. The granting of the variance will not be detrimental to the public welfare or injurious to other land or improvements in the neighborhood in which the parcel is located. Finding: The variance should not be detrimental to the public welfare or injurious to other land or improvements. Steps will be taken to ensure that the appropriate size and type of fasteners are used to attach signs to the building. The proposed variation will not impair an adequate supply of light and air to adjacent property or substantially increase the congestion of the public streets or increases the danger of fire or endanger the public safety or substantially diminish or impair property values within the neighborhood. Finding: The proposed variation will not significantly impair light and air to adjacent property. Granting the variance will not increase congestion of public streets or endanger public safety. Based on the findings presented in the staff report, staff recommends approval of the non street frontage sign variance. The location of letters and logos shall be restricted to the sign area shown on the plan. The letters and logos shall be restricted to 30 inches in height. All individual letters and logos comprising each sign shall have a minimum depth of five inches and shall be constructed with a translucent facing over neon tube illumination. Tenant neon illuminated signage shall consist of store identification only. Copy is restricted to the tenant's proper name and logo. Corporate logos, emblems and similar identifying devices are permitted provided they are confined within the signage band and do not occupy more than 15% of the sign area. Chanhassen Cinema May 5, 1999 Page 13 SITE GRADING Plans propose to reconfigure portions of the parking lot as well as removal of Pauly Drive from the westerly access point to the site. The existing Southwest Metro bus pick up/drop off zone will not be impacted by this proposal. DRAINAGE The site currently sheet drains to the south where an existing storm sewer system conveys the parking lot runoff to the downtown regional stormwater pond for pretreatment prior to discharging downstream. No further drainage improvements other than the additional catch basin as shown on the plans is necessary. The City's Surface Water Management fees would not be applicable to this development since the property has been previously platted and all the stormwater improvements are in place. UTILITIES The City has sanitary sewer and water lines that intersect the site from east to west just south of the entertainment complex. According to the plans, the building remodeling and expansion will encroach into the City's drainage and utility easement and will actually build a portion of the structure over the existing sewer and water lines. This encroachment would not be acceptable without further modifications to the City's infrastructure. The water and sewer lines could be relocated by the applicant to avoid the encroachment/conflict. A new drainage and utility easement would have to be dedicated to the City as a result of this relocation. Existing drainage and utility easements not being used could be vacated. An alternate option would be to leave the existing sanitary sewer in place and add manhole structures on each side of the building and case the sanitary sewer pipe so in the future a problem arises, the sanitary sewer line can be easily replaced without having to excavate underneath the building. The water' line, however, will still need to be relocated from underneath the building. Both the sewer and water lines are extremely old and fragile. In conjunction with the parking lot improvements and building expansion, the existing gate valves, manholes, and catch basins on the site may require adjustments. The applicant and/or contractor shall be responsible for all adjustments necessary. The City Utility Department will require inspection of these adjustments as they occur. The applicant shall contact the City's Utility Department to coordinate the appropriate inspections. Chanhassen Cinema May 5, 1999 Page 14 ACCESS The site is accessed from Market Boulevard and Pauly Drive. There are two existing driveways off Pauly Drive and one from Market Boulevard. Pauly Drive is still a city street with a 50 foot right-of-way. Previous application for the cinema complex requested vacation of Pauly Drive back in 1996. The vacation request was approved, however, never recorded. The vacation was contingent upon the applicant providing certain things to the City and entering into a site plan agreement. Therefore, if Pauly Drive is to be vacated, it will need to go through the formal hearing process again. Pauly Drive currently dead ends at the easterly curb cut to the entertainment complex. At the east end of the cinema complex parking lot, there is a gravel surfaced driveway which serves as another access route behind the dinner theater and scene shop out to Great Plains Boulevard. According to the traffic report generated by Benshoof& Associates, Inc. dated November 11, 1998 and supplementary comments to that report dated November 18, 1998, it recommended that an unimpeded corridor (east/west) road be constructed to provide adequate traffic movements to and from the site. Based on the traffic report with this type of use, traffic will experience significant delays at the intersection of Pauly Drive and Market Boulevard (Level F). The supplementary comments to the traffic report indicated that a second option would be to provide an east/west street with parking provided on one or both sides. The second option also indicated the main benefit is to only increase the availability of parking stalls. This option does not provide the level of traffic safety desired or necessary with this development. Staff strongly recommends that an unimpeded east/west connector street from Market Boulevard to Great Plains Boulevard should be required to adequately service the cinema complex as well as future land use development east of the site. Attached is an example of staff's recommendation for an east/west connection. Parking shall be prohibited on both sides of the east/west street. The minimum drive aisle width should be 28 feet, face-to-face. Cross-access easements and maintenance agreements for cross parking should be prepared by the applicant for each business to access the site and utilize the parking lot. According to City Code Section 20-1118, drive aisle widths between two rows of parking shall be a minimum of a 26 feet. Some of the drive aisles proposed do not meet this and will need to be modified to comply with city ordinance. Staff is also concerned about the turning radiuses for emergency vehicles. The applicant's engineer/site planner will need to increase radiuses and/or drive aisle widths to accommodate fire apparatus vehicles. This may also result in the loss of additional parking stalls. Staff recommends that the main drive aisle areas be 28 feet wide with a minimum 20-foot wide radiuses at the intersections. Traffic control will also be an issue. The applicant will need to prepare a revised traffic signage plan for staff to review and approve prior to issuance of a building permit. Chanhassen Cinema May 5, 1999 Page 15 MISCELLANEOUS Development is proposed over a number of outlots and lots. Replatting of the property into a single lot and block or multiple lots and blocks is recommended. SITE PLAN FINDINGS In evaluating a site plan and building plan, the city shall consider the development's compliance with the following: (1) Consistency with the elements and objectives of the city's development guides, including the comprehensive plan, official road mapping, and other plans that may be adopted; (2) Consistency with this division; (3) Preservation of the site in its natural state to the extent practicable by minimizing tree and soil removal and designing grade changes to be in keeping with the general appearance of the neighboring developed or developing or developing areas; (4) Creation of a harmonious relationship of building and open space with natural site features and with existing and future buildings having a visual relationship to the development; (5) Creation of functional and harmonious design for structures and site features, with special attention to the following: go An internal sense of order for the buildings and use on the site and provision of a desirable environment for occupants, visitors and general community; b. The amount and location of open space and landscaping; Co Materials, textures, colors and details of construction as an expression of the design concept and the compatibility of the same with adjacent and neighboring structures and uses; and do Vehicular and pedestrian circulation, including walkways, interior drives and parking in terms of location and number of access points to the public streets, width of interior drives and access points, general interior Chanhassen Cinema May 5, 1999 Page 16 circulation, separation of pedestrian and vehicular traffic and arrangement and amount of parking. (6) Protection of adjacent and neighboring properties through reasonable provision for surface water drainage, sound and sight buffers, preservation of views, light and air and those aspects of design not adequately covered by other regulations which may have substantial effects on neighboring land uses. Finding: The proposed development is generally consistent with the comprehensive plan. It requires variances to meet the zoning ordinance, and the site plan review requirements. The site design as it relates to street furniture and architectural design, could be improved as recommended by staff. BUILDING OFFICIAL COMMENTS The maximum allowable building area for the cinema is approximately 36,000 feet based on type II-N construction and the proximity to adjoining property lines. The proposed addition would create a building of approximately 46,000 square feet which is larger than is permitted for type II- N construction. (The existing cinema is type II-N.) If the proposed retail building and the cinema addition are on the same piece of property, the walls adjoining each building must be of 1-hour fire resistive construction. If there is a property line between the retail building and the cinema building, the walls still need to be of 1-hour fire resistive construction and openings in those walls must be protected with a fire resistive assembly of 3A-hour. This is assuming a minimum of ten feet between the buildings as it scales on the plan. If the space between the buildings is less ten feet openings (doors etc.) would not be permitted The property will have to be replatted to eliminate the property line that currently exists between the existing cinema and the proposed cinema. Other proximity to property line issues may arise pending the location of the new property lines. The accessible parking signage indicated on sheet C3 must be at a height of 48-60 inches from the parking surface to the bottom of the sign. Sheet A2.1 was not reviewed for exiting purposes at this time. The utility plan was not reviewed at this time. The building owner and/or their representatives meet with the Inspections Division as soon as possible to discuss plan review and permit procedures. Chanhassen Cinema May 5, 1999 Page 17 FIRE MARSHAL COMMENTS Fire lane signage and yellow curbing will be determined by the Chanhassen Fire Marshal. Contact the Fire Marshal for exact location of fire lane signs and curbing to be painted yellow. Pursuant to Section 904-1 1997 Uniform Fire Code. A 10 foot clear space must be maintained around fire hydrants, i.e., street lamps, trees, shrubs, bushes, NSP, US West, Cable TV and transformer boxes. This is to ensure that fire hydrants can be quickly located and safely operated by firefighters. Pursuant to Chanhassen City Ordinance 9- 1. Submit radius turn dimensions and parking lots to determine fire department vehicle access. Submit turn dimensions to Chanhassen City Engineer and Chanhassen Fire Marshal for review and approval. Pursuant to Section 902.2.2.3 1997 Uniform Fire Code. In the proposed alleyway between the Cinema and the proposed retail there will be absolutely no storage of combustibles allowed at any time. Appropriate signage will be required. Contact Chanhassen Fire Marshal for exact wording of signs and location. RECOMMENDATION Staff recommends the Planning Commission table action on this application and direct the applicant to address issues raised in the staff report, including: alley design/fire code exterior facade - materials · cinema entrance · site access/Pauly Drive extension parking lot drive aisle width · number of parking stalls during peak seasons · landscaping · street furniture · building code as it relates to size of building · signage - (red led) electronic boards number of signs on marquee color on marquee ATTACHMENTS 1. Memo from Mark Littfin, Fire Marshal, dated April 26, 1999. 2. Memo from Dave Hempel, Assistant City Engineer, dated April 28, 1999. Chanhassen Cinema May 5, 1999 Page 18 3. Memo from Steve Torell, Building Official, dated April 26, 1999. 4. Application. 5. Project Narrative. 6. EDA minutes dated January 28,1999. 7. Marquee Sign Design. 8. Site Plan. g:\plan\sa\chan cinema.doc CITYOF CHANHASSEI MEMORANDUM 690 G~ Center Drive, PO Box 147 TO: Chanhassen, Minnesota 55317 Phone 612.937.1900 Geneml £~x 612.937.5739 Engineering E~x 612.937.9152 Public Safety Fax 612.934.2524 Web www. ci. chanhasse,, m,. us FROM: DATE: SUBJECT: Sharmin AI-Jaff, Senior Planner Mark Littfin, Fire Marshal April 26, 1999 Chanhassen Properties LLC, request for subdivision and site plan review to demolish the existing Chanhassen Bowl and Filly's Bar and replace it with eight additional theaters with a seating capacity of 1,400 seats with an area of 30,000 square feet and 9,000 square feet of retail space variances for signage hard surface coverage and parking requirements on property zoned BG, General Business district, located north of the railroad tracks and Pauly Drive, East of Market Boulevard and south of West 78th Street. Plmming Case: 99-4 site plan. 1 have reviewed the site plan for the above project. In order to comply with the Chanhassen Fire Department/Fire Prevention Division, I have the following fire code or city ordinance/policy requirements. The site plan is based on the available information submitted at this time. If additional plans or changes are submitted, the appropriate code or policy items will be addressed. Fire lane signage and yellow curbing will be determined by the Chanhassen Fire Marshal. Contact the Fire Marshal for exact location of fire lane signs and curbing to be painted yellow. Pursuant to Section 904-1 1997 Uniform Fire Code. A 10 foot clear space must be maintained around fire hydrants, i.e., street lamps, trees, shrubs, bushes, NSP, US West, Cable TV and transformer boxes. This is to ensure that fire hydrants can be quickly located and safely operated by firefighters. Pursuant to Chanhassen City Ordinance 9-1. o Submit radius turn dimensions and parking lots to determine fire department vehicle access. Submit turn dimensions to Chanhassen City Engineer and Chanhassen Fire Marshal for review and approval. Pursuant to Section 902.2.2.3 1997 Uniform Fire Code. In the proposed alleyway between the Cinema and the proposed retail there will be absolutely no storage of combustibles allowed at any time. Appropriate signage will be required. Contact Chanhassen Fire Marshal for exact wording of signs and location. g:\safety\ml\plrev99-4site The City of Chanhassen. A growing community with clean lakes, quali~y schools, a charming downtown, thriving businesses, and beautiful parks. A great place to live, work, and play. CITYOF CHANHASSEN MEMORANDUM TO: Sharmin A1-Jaff, Senior Planner 690 Cig Center Drive, PO Box 147 Chanhassen, Minnesota 55317 Phone 612.937.1900 General Fax 612. 937. 5739 Engineering tax 612.937.9152 Public Safety Fax 612.934.2524 Web www. ci. chanhassen, mn. us FROM: DATE: SUB J: David Hempel, Assistant City Engineer April 28, 1999 Site Plan Review for Cinema Expansion - Land Use Review No. 99-11 Upon review of the plans prepared by KKE dated April 2, 1999, I offer the following comments and recommendations: SITE GRADING Plans propose to reconfigure portions of the parking lot as well as removal of Pauly Drive from the westerly access point to the site. The existing Southwest Metro bus pick up/drop off zone will n°t be impacted by this proposal. DRAINAGE The site currently sheet drains to the south where an existing storm sewer system conveys the parking lot runoff to the downtown regional stormwater pond for pretreatment prior to discharging downstream. No further drainage improVements other than the additional catch basin as shown on the plans is necessary. The City's Surface Water Management fees would not be applicable to this development since the property has been previously platted and all the stormwater improvements are in place. UTILITIES The City has sanitary sewer and water fines that intersect the site from east to west just south of the entertainment complex. According to the plans, the building remodeling and expansion will encroach into the City's drainage and utility easement and will actually build a portion of the structure over the existing sewer and water lines. This encroachment would not be acceptable without further modifications to the City's infrastructure. The water and sewer lines could be relocated by the applicant to avoid the encroachment/conflict. A new drainage and utility easement would have to be dedicated to the City as a result of this relocation. Existing drainage and utility easements not being used could be vacated. An alternate option would be to leave the existing sanitary sewer in place and add manhole structures on each side of the building and case the sanitary sewer pipe so in the future a problem arises, the sanitary sewer line can be easily replaced without having to excavate underneath the building. The water line, however, will still need to be relocated from underneath the building. Both the sewer and water lines are extremely old and fragile. The City of Chanhassen. A growing community with clean lakes, quali~y schools, a charming downtown, thriving businesses, and beaut!fal parks. A great place to live, work, and play. Sharmin Al-Jarl April 28, 1999 Page 2 In conjunction with the parking lot improvements and building expansion, the existing gate valves, manholes, and catch basins on the site may requke adjustments. The applicant and/or contractor shall be responsible for all adjustments necessary. The City Utility Department will require inspection of these adjustments as they occur. The applicant shall contact the City's Utility Department to coordinate the appropriate inspections. ACCESS The site is accessed from Market Boulevard and Pauly Drive. There are two existing driveways off Pauly Drive and one from Market Boulevard. Pauly Drive is still a city street with a 50 foot right-of-way. Previous application for the cinema complex requested vacation of Pauly Drive back in 1996. The vacation request was approved, however, never recorded. The vacation was contingent upon the applicant providing certain things to the City and entering into a site plan agreement. Therefore, if Pauly Drive is to be vacated, it will need to go through the formal hearing process again. Pauly Drive currently dead ends at the easterly curb cut to the entertainment complex. At the east end of the cinema complex parking lot, there is a gravel surfaced driveway which serves as another access route behind the dinner theater and scene shop out to Great Plains Boulevard. According to the traffic report generated by Benshoof & Associates, Inc. dated November 11, 1998 and supplementary comments to that report dated November 18, 1998, it recommended that an unimpeded corridor (east/west) road be constructed to provide adequate traffic movements to and from the site. Based on the traffic report with this type of use, traffic will experience significant delays at the intersection of Pauly Drive and Market Boulevard (Level F)o The supplementary comments to the traffic report indicated that a second option would be to provide an east/west street with parking provided on one or both sides. The second option also indicated the main benefit is to only increase the availability of parking stalls. This option does not provide the level of traffic safety desired or necessary with this development. Staff strongly recommends that an unimpeded east/west connector street from Market Boulevard to Great Plains Boulevard should be required to adequately service the cinema complex as well as future land use development east of the site. Attached is an example of staff's recommendation for an east/west connection. Parking shall be prohibited on both sides of the east/west street. The minimum drive aisle width should be 28 feet, face-to-face. Cross-access easements and maintenance agreements for cross parking should be prepared by the applicant for each business to access the site and utilize the parking lot. According to City Code Section 20-1118, drive aisle widths between two rows of parking shall be a minimum of a 26 feet. Some of the drive aisles proposed do not meet this and will need to be modified to comply with city ordinance. Staff is also Sharmin A1-Jaff April 28, 1999 Page 3 concerned about the turning radiuses for emergency vehicles. The applicant's engineer/site planner will need to increase radiuses and/or drive aisle widths to accommodate fire apparatus vehicles. This may also result in the loss of additional parking stalls. Staff recommends that the main drive aisle areas be 28 feet wide with a minimum 20-foot wide radiuses at the intersections. Traffic control will also be an issue. The applicant will need to prepare a revised traffic signage plan for staff to review and approve prior to issuance of a building permit. MISCELLANEOUS Development is proposed over a number of outlots and lots. Replatting of the property into a single lot and block or multiple lots and blocks is recommended. RECOMMENDED CONDITIONS OF APPROVAL The applicant shall redesign the building plans to avoid conflict with the City's sanitary sewer and water lines. The applicant shall have the option to relocate the sanitary sewer or add additional manholes and case the sanitary sewer line underneath the building. The water line shall be relocated a minimum of 10 feet away from any building structure. The applicant shall also dedicate all new drainage and utility easements to encompass the relocated utility lines. All utility construction shall be in accordance with the City's latest edition of Standard Specifications and Detail Plates. The applicant shall be responsible for all adjustments to existing gate valves, manholes, and catch basins on the site. The City's Utility Department will require an inspection of these adjustments. All disturbed areas as a result of construction shall be restored with sod and/or landscaping materials within two weeks of completion of the parking lot improvements. The applicant shall enter into a site plan agreement with the City and provide the necessary financial security in the form of a letter of credit or cash escrow to guarantee compliance with the conditions of approval and to guarantee restoration of the city boulevards and adjustments to the city infrastructure. The plans shall be redesigned to incorporate the following items: A) Incorporate an unimpeded street from Market Boulevard easterly to Great Plains Boulevard. The minimum drive aisle width shall be 28 feet, face-to-face of curb. Parking shall be prohibited on both sides of the street. B) All drive aisle and parking lot stalls shall be redesigned in accordance with City Code 20-1118. C) The applicant shall prepare a revised traffic control plan for city staff to review and approve prior to issuance of a building permit. Sharmin A1-Jaff April 28, 1999 Page 4 o The applicant shall report to the city engineer the location of draintile found during construction. The city engineer shall determine whether or not the dmintiles can be abandoned or reconnected. The applicant shall apply for and obtain all necessary permits from the regulatory agencies such as the Health Department, Watershed District, and the City of Chanhassen's Building Department. 6. The applicant shall replat the outlots and Lots 1 and 2, Block 1, Chanhassen Mall into lots and blocks pursuant to city ordinance. jms Attachment: Hoisington Koegler Group Parking Lot Layout dated April 28, 1999. c: Anita Benson, City Engineer \xc fs 1 \v ol2~ngMave',0c~cin em a expansion.doc CITY OF CHANHASSEN SOUTH SIDE STUDY AREA CITYOF CHANHASSEN 690 City Center Drive, PO Box 147 TO' Chanhassen, Minnesota 55317 Phone 612. 937,1900 FROM: General Fax 612.937.5739 Engineering Fax 612.937.9152 DATE: Public Safety Fax 612.934.2524 Web www. ci. chanhassen, mn. us SUB J: MEMORANDUM Sharmin A1-Jaff, Senior Planner ~~'"'""'~~ / Steve Torell, Building Official April 26, 1999 Site Plan Review for The Chanhassen Cinema Addition and Retail Building Project Planning Case//99-4 I have reviewed the plans for the above project and offer the following comments: 1) The maximum allowable building area for the cinema is approximately 36,000 ~feet based on type II-N construction and the proximity to adjoining property lines. The proposed addition would create a building of approximately 46,000 square feet which is larger than is permitted for type II-N construction. (The existing cinema is type II, N.) 2) If the proposed retail building and the cinema addition are on the same piece of property, the walls adjoining each building must be of 1-hour fire resistive construction. If there is a property line between the retail building and the cinema building, the walls still need to be of 1-hour fire resistive construction and openings in those walls must be protected with a fire resistive assembly of%-hour. This is assuming a minimum often feet between the buildings as it scales on the plan. If the space between the buildings is less ten feet openings (doors etc.) would not be permitted 3) The property will have to be replatted to eliminate the property line that currently exists between the existing cinema and the proposed cinema. Other proximity to property line issues may arise pending the location of the new property lines. 4) The accessible parking signage indicated on sheet C3 must be at a height of 48-60 inches from the parking surface to the bottom of the sign. s) Sheet A2.1 was not reviewed for exiting purposes at this time. The utility plan was not reviewed at this time. 6) I would request that the building owner and/or their representatives meet with the Inspections Division as soon as possible to discuss plan review and permit procedures. ST:cd The City of Chanhassen. A growing community with clean lakes, quali~ schools, a charming downtown, thriving, businesses, and beautifisl parks. A great place to live, work, and play FROH CITY OF CHRNHA$SEH 04o02.1999 14:45 P. 2 CITY OF CHANHASSEN 690 COULTER DRIVE CHANHASSEN, MN 55317 (612) 937-1g00 DEVELOPMENT REVIEW APPLICATION 'TE~PHONE(Da~tlme)_ .Gt~ -~ }L- E~'~ TELEPHONE: ComPrehensive Plan Amendment Temporary Sales Permit Vacation of ROW/Easements interim'Use Poimlt Non-c~formln~ O,e Per'It Plann[~'~l. =, Unit velcpm~nt' Rezo~{ng Sign Permits Variance Wetland Alteration Permit Zoning Appeal -- Zoning Ordinance Amendment NotllicatlBn Sign ~ Escrow for Filing Fees/Attorney Cost" ($50 CUP/SPR/VAC/VAR/WAP/Metes and Bounds, $400 Minor SUB) TOTAL FEE $ ~ C ~'~ c~ O A list ~f all pr0per.y owners within 500 feet of the boundaries of the property must be Included with the a.opll~tlon. Building material samples must be submitted with site plan reviews. 'TwflYl. y-slx f,ul.I size ~ copies of the plans must be submitted, Including an 81/~" X 11" reduced copy of tran~;~arenc~ for each.plan sheet. "Eec, row will be required for other applications through the development contract :NOTE - When multiple app Ications are processed, the appropriate fee shall be charged for each application. FROM CITY OF CH~HHRSSEH 04.02o1999 14:45 P. 5 · NOTE - When multiple ~ pplications are processed, the appropriate fee shall be oharged for each appllc, atlcn. LOCATION_ ~~ ~c~O ~ ~ ~, LEG~ DESCRIPTION PRESENT ZONING REQUESTED ZONIN{3 .PRESENT LAND USE DESIGNATION 'REQUESTED LAND USE :3ESlGNATION _ REASON FOR THIS REQUEST ~'hlS appli~atl'~n must I~e-" co'rip;steel In full anc~ be ~p~w~,en or clearly pri~ed end plans re~uire~ b~ ~ppl[c~b~e C~ Ordinance provisions. Before filing this appll~tion, you s~uld, ~er w~the PJannJng Depa~ment io de ermine the spec~ ordinance and pm~dural ro~ulreme~ ~pllo~le lo ~ur ~plloalio0. · .]s Is I0 ce.~y that I am ~aking application for the 0es~ibed a~lon by the w~h al~ Ol~ r~ulremehts ~h regard to this request. This eppli~tlon s~ulO be processed In my name an01 am the ~any whom the City should' oon.a~ regarding any maker pe~alnlng to this ~l~tion. I have a~aohe~ a ~py of pro3t of ownership (e'hher copy 0f ~wner's Duplicate CeflffJcate of T~le, ~stra~ of T~le or ~rohase cosecant), or I em the autho~ze~ pc/son to ~ake 1his eppfl~tlon a~ the fee owner has also s~ned this I wlfl keep my.sell info,rmec Of the deadlines 1or submission of material a~ the progress of this application. Itu 1her unclerstancl that additional 'Lees may be charged for mnsuitlng fees, feaslbli~ty ~udies, etc. with an estimate prior to any authorization:t{) proceed wllh the study. The ~cuments and information i have submffted are true and mrreu'l to the best of my knowle,~e. I also underst.~n~! that after the approval or gra~[ng of the permit, ~uch permits shall be Invalid unless they are reco'ded against 1he tll.'le to the I~rOpe~y for which the approval/permit is granted Wlthln la0 days with the Carver County Recon"Jer's Office and the !orlglnai d0cL mens resumed to City Hall Date ~'-~. Oi~ ,~- ~lgnature of ,cite Owner Date A~3pTIcatlon Received on Fee Paid Re~lpt No. · The eppllceflt shouid oonte~t staff tot a copy o! the staff fspoi't which will be available on Friday prior to the meeting. If not contactedi a gopy of the repoffl will be malle{I to the applicant's adding. CHANHASSEN ENTERTAINMENT RETAIL COMPLEX PHASE III April 2, 1999 I. BACKGROUND A. ENTERTAINMENT RETAIL COMPLEX 1. A three phase redevelopment was presented in 1994 and eventually approved in 1996. a. Phase I was the eight screen cinema which opened in March, 1998. b. Phase II is the Frontier building redevelopment which is under construction now. c. Phase III originally consisted of the bowling alley, a new restaurant and approximately 5,000 sf of retail shops. Phase III now consists of an eight screen addition to the cinema and approximately 9,000 sf of retail shops. II. GENERAL A. This Phase III project consists of an addition to the cinema and about 9,000 sf of new retail shops which face Market Blvd. on the west. B. The existing bowling building will be demolished leaving just the cinema building. The existing marquee over the existing entrance to the cinema will be removed. C. The addition to the cinema will contain a new main entrance and lobby on the south side. The addition will have eight more screens bringing the total number of screens to 16. These eight new auditoriums will contain about 1,400 seats bringing the total number of seats to about 2,800. All new seating will be stadium seating. One new auditorium will have 350 seats with a 60 foot wide screen which is twice the width of today's screens. 1. The expanded cinema will be entered at grade on the south side with stairs inside to bring patrons up to the higher floor level inside. Wheel chair access will be in the main entrance on the south side and up to the lobby floor level via an elevator. D. The retail shops will be on the west side and will face west and south. The 9,000 sf will be divided into three to six shops. So far, a Dairy Queen has expressed strong interest. 1. The new shops will be entered at grade on the west side as well as possibly the south side. E. The existing parking lot will be reconstructed with new islands, striping and landscaping. The parking lot will be made pedestrian friendly by adding striped cross walks to the sidewalks. Page 1 CHANHASSEN ENTERTAINMENT RETAIL COMPLEX PHASE III April 2, 1999 F. We plan to start construction of the cinema addition in August, 1999 and open in March, 2000. Construction of the new retail will coincide with the cinema addition. ill APPLICATION INFORMATION A. APPLICANT 1. The applicant is Chanhassen Properties, LLC at 5300 Hyland Greens Dr., Suite 200, Bloomington, MN. Telephone is 612-832-5302. The property owner is currently Dan Dahlin. We have a purchase agreement with Dahlin to purchase the property. B. FEE Delivered with application: Subdivision Replat Site Plan Review $10/1,000 SF X 39,000 SF = Variance Fee Total Fee $150.00 $250.00 $390.00 $75.00 $865.00 C. NAME Name of project is Chanhassen Entertainment Retail Complex, Phase III D. USE 1. The cinema addition will be used to house a new lobby and eight movie auditoriums with about 1,400 new seats. The retail building will house three to six new retail tenants. E. ZONING 1. The property is zoned General Business and is being used as a bowling ally. Page 2 CHANHASSEN ENTERTAINMENT RETAIL COMPLEX PHASE III April 2, 1999 F. PROJECT DATA 1. Parcel Size: 114,000 SF 2. Floor Area: Cinema Addition 30,000 SF Retail Building 9,000 SF 3. Building Coverage 34% 4. Impervious Surface 95% 5. Parking Area 61% 6. Number of Employees (mostly p.t.) 50 7. Number of New Seats 1,400 8. Parking Required by City Consultant 525 9. Parking Provided 539 10. Building Height: Cinema Addition 38 feet Retail Building 23 feet G. Roof Top Equipment 1. Roof top equipment will be screened by the parapets surrounding the buildings H. SIGNAGE 1. Movie Marquee: 2. Title Reader Boards: 3. Retail Building: see attached details see attached details see attached narrative by KKE I. AWNINGS 1. See attached narative by KKE J. HAZARDOUS MATERIALS 1. None involved K. FIRE PROTECTION 1. Both buildings will be fully protected by a monitored, wet fire sprinkler system. L. PARKING 1. The Hoisington Koegler Group's report commissioned by the city and dated July 27, 1998 found that there is sufficient parking for the entire entertainment block including the cinema addition and a 6,000 sf restaurant. Based on the staff's recommendation, we have deleted the restaurant and added 9,000 sf of retail. This change of use improves the parking situation. Page 3 CHANHASSEN ENTERTAINMENT RETAIL COMPLEX PHASE III April 2, 1999 Using Hoisington's findings, the supply and demand for the 2,800 seat cinema, the new 9,000 sf retail and the 11,000 sf Frontier retail is as follows: USE SIZE PEAK PEAK RATE DEMAND Cinema 2,800 0.17 477 New Retail 9,000 4.0 36 Frontier Retail 11,000 2.0 24 DDJUSTED EMAND I 477 29 19 TOTAL DEMAND TOTAL STALLS AVAILABLE TOTAL EXCESS 525 539 14 3. Our own independent research supports Hoisington's findings. Further, there are approximately two hundred city owned parking stalls across West 78th Street from the entertainment block. These stalls would be available at peak times. M. TRAFFIC We retained the firm of Benshoof & Associates to study the effect of the proposed project on traffic in the area. A copy of Benshoof's report dated November 11, 1998 is attached for your review. 2. In short, Benshoof recommends an east west connection from Market Blvd. to Great Plains Blvd. We agree to make this a condition of approval. Page 4 KKE Korsunsky Krank Erickson Architects. Inc. 30i) First Avenue North Minneapolis. MN q'q ~01 612 339-.~20q FAX 3:~2-926' CHANHASSEN ENTERTAINMENT/RETAIL COMPLEX The proposed expansion of the existing eight (8) screen theatre to sixteen (16) screens and additional 9,000 SF of small retail will complete Phase III of the Entertainment/Retail Complex. The intention of the design is to create an entertainment/shopping atmosphere that does not look like an addition, but reflects a sense of permanence and character that is historically established in the unique charm of downtown Chanhassen. The existing Bowling Alley will be demolished leaving just the Cinema. The addition to the cinema will contaifi a new main entrance and lobby on the south side. The eight (8) new auditoriums will contain approximately 1,400 seats bringing the total number of seats to about 2800. All new seating will be stadium seating. One new auditorium will have 350 seats with a 60 foot wide screen which is twice the width of today's screens. The expanded cinema will be entered at grade on the south side with a grand staircase and elevator to bring patrons up to the higher floor level inside. The existing ramp on the east side will be used for exiting the cinema as well as handicap access to the abandoned existing lobby which will be converted to office or retail. The retail shops offer excellent opportunities for small cafes and shops that can take advantage of the theatre traffic. Building Orientation The Cinema's new lobby is oriented for better visibility of the marquee from main roadways as well as better distribution of parking stalls overall on the site. The retail shops are oriented to the west and south to protect retail parking stalls from the cinema parking, and to take advantage of views to the storefronts from the major roadways. The retail services from the rear corridor that is formed between the shop space and the Cinema expansion. Deliveries and trash are serviced from the north end of the retail. The service corridor is also functioning for deliveries to the theatre and for exiting the Cinema. The close grouping of the two buildings ci'eate short distances for pedestrian movement to and from the Cinema and shops. An outdoor eating plaza is provided at the southwest comer of the retail building. The east side of the theatre is enhanced with increased landscaping, and streetscape such as benches and ornamental lighting to create a more pedestrian friendly environment for shopping arriving from the east. \rcili[cCttlre KKE No. 99-08-1035-01 April 1, 1999 Page -2- Building Design Building Mass: The Cinema addition is designed with a higher height than the existing in order to accommodate the stadium seating. The entry lobby and marquee are intentionally proportioned with increased height in order to integrate the two masses together. The existing light colored precast will be painted a darker color in order to de-emphasize the mass both on the south facade as well as the west facade. The upper portion of the cinema will be a light color to give the scale of the Cinema a lower profile. The new entry lobby is angled and much attention to form is given to the marquee sign to add interest to the flat backdrop of the Cinema. The retail shopghave varying roof lines for interest, and special architectural tower forms at the ends of the building help in the transition of heights from Cinema to shops. The use of canopies and undulated facade fronts help to add shadow and diminish the strip effect. Facade Design: The Cinema addition facade will incorporate precast panels to match the existing in order to integrate the building as one. The existing facade and addition will be enhanced by applying 2" thick pilasters to the flat design in order to add shadow and interest. The light color will be painted a brick color to warm the facade and make it less dominant. The existing "window" above the original theatre entry will have a cornice and sign protrusion to give a better integration and appearance as a true window. Canvas awnings will be added over the windows of the entry where the marquee will be removed to enhance the leaseability of the space and soften the comer. Details such as the metal cornice, patterns in the precast, metal railings, and rock-face block base will be repeated in exact colors, profiles and details in order to integrate the addition. The new entry lobby will incorporate brick columns with brick detailing and upper comice to match existing. The brick will continue along the sides to maximize a brick appearance. Glass curtainwalls are maximized to create an exciting atmosphere when viewed in the evening. The new marquee signage will be professionally designed by a graphic artist to create a bright, colorful, festive sign with neon and tivoli lights. The style will reflect historical theatre marquees of the 20's. The movie titles will be located on the south facade. Five lines per four openings of electronic static reader boards will accommodate the titles. These signs are surrounded in E.I.F.S. mouldings with upper spandrel windows above to give the appearance of the former grand lobby openings. KKE No. 99-08-1035-01 April 1, 1999 Page -3- The retail shops have varying facade designs to give the appearance of old "Main Street" shops that have evolved over time. The use of several brick colors and E.I.F.S. colors help to bring the scale of the facades down to a pedestrian level. The use of transom windows, decorative lights, cornice shapes, canvas awnings and block sills combine to add detail and charm to the shopping experience. The key comers feature tower forms with upper windows to imply a two-story character reminiscent of the tm-of-the-century mainstreets. The standing seam metal roof forms help to call attention to the towers as focal points. Screening: ,, Mechanical equipment and rooftop units will be screened by parapet. Trash enclosures will be made of integrally colored rock-face block to match the building and be accessed with stained wood gates. The view through the services corridor from the south side will be screened with coniferous landscaping and an upper archway will help to tie the buildings together, and screen the corridor. Landscaping: Plant materials are selected in regard to interesting structure, texture color, seasonal interest and its ultimate growth characteristics. Landscaping has been added at the east end of building to soften the area and heighten the pedestrian activity. Landscape opportunities have been maximized throughout the site including boulevard drives down main entrance and throughout parking lots. The sidewalk areas against the buildings have landscaped beds that create interesting outdoor "rooms" for comfortable outdoor eating opportunities. Streetscape elements such as bike racks, benches, ornamental lights and paving patterns in the sidewalks are incorporated to enrich the pedestrian experience. Signage/Awnings: Signage for retail shops are to maintain a consistent metal surround color (bronze). Individual letter style and color is encouraged, yet controlled and reviewed by Landlord's discretion. All wall signage shall be individually mounted letters. Maximum sign area for wall signs shall be of eight percent (8%) of wall area not to exceed 60 SF or four percent (4%) of wall area not to exceed 200 SF. The use of backlit awnings or vinyl awnings are prohibited; however, the Landlord encourages unique canopy styles and colors for variety. Building signage should not overpower the architectural character, but serve as identity. Signage may be located in designated facade areas only. Prohibited signs include moving signs and panel signs. NOU-Z~-Zg~8 ZS:3Z ~ENSHOOF ~ RSSOC, 612 8~2 BENSHOOF & ASSOCIATES, INC. TRANSPORTATION ENGINEERS AND.PLANNERS 7301 OHMS LANE, SUITE 500 / F. DINA, MN 55439 / (612) 832-9858 / FAX (612) 832-9564 95~4 P.02/09 November 11, I998 REFE~ TO FILE: 98-79 MEMORANDUM TO: Robert Copeland, Chanhassen Properties, CLC FROM: lames A. Bcnshoofand Bryant I. Ficek~Pi/'' RE: Traffic Review of Proposed Expansion for Chanhassen Cinema PURPOSE This report is to present the results of the traffic analysis we have performed for the proposed expansion of the Chanhassen Cinema in Chanhassen, Minnesota. The analysis began with consideration toward all roadways and intersections that serve the development site. The three main intersections of interest are Highway 5/Market Boulevard, Pauly Drive/Market Boulevard, and West 78"' Street/Market Boulevard. The Highway 5/Market Boulevard and West 78~ Street/Market Boulevard intersections have multiple lanes in each direction and are controlled by traffic signals to allow consistent movement in every direction. With signal control and sufficient geometries already in,place at these two intersections, the additional volume generated by the proposed development is expected to have little impact on traffic operations at either intersection. Therefore, no additional analyses were performed at those intersections. The remainder of this report focuses on the operation of the intersection of Market Boulevard and Pauly Drive. This intersection is analyzed in detail because it is the main entrance and exit for the Cinema and therefore contains the highest concentrated volume from the proposed development. The analysis concentrated on the peak period for a typical Friday evening. BACKGROUND Proposed Development Charactedst[c.s The proposed development will remodel the existing buildings located in the northeast quadrant of the Market Boulevard/Pauly Drive intersection. The current theater will be expanded to 16 screens with approximately 2,800 seats. Entrance to the cinema will be located on the south side of the building. A new retail use will also occupy the building. The size of this retail store will be about 9,000 square feet and its entrance will be on the west side of the building. The current bowling alley, nightclub, and bar would all be removed to NOV-ii-1998 15:51 BENSHOOF & ASSOC. 612 832 9564 P.03/09 Mr. Robert Copeland -2- November ll, 199g make room for the enlarged cinema and new retail store. Retail uses with a total size of 6,000 square feet are planned to occupy the lower level of the nearby Frontier Center. Exi$.ting Conditions The Cinema currently contains eight screens with 1,400 seats. The remaining area, approximately 39,000 square feet, is presently occupied by the Chanhassen Bowl/Sports Bar & Grill, Filly's Nightclub, and Backstretch Bar & Grill. For the puq~ose of this report, these existing uses in the 39,000 square feet space will collectively be referred to as the bowling alley. The 6,000 square feet in the lower level of the Frontier Center are currently vacant. Three access points provide access to the parking lots around the buildings. An alley runs between the Cinema and the Frontier Center, connecting with West 78th Street via parking lots north of the buildings. Another access point is located directly west of the buildings connecting to Market Boulevard. This study focused on the third access point, the intersection of Market Boulevard/Pauly Drive, which is the primary access location for the Cinema. The intersection of Market Boulevard and Pauly Drive is unsignalized and is controlled by signs stopping traffic on Pauly Drive. The northbound approach consists of two lanes, a through/left turn and a through/fight mm. The southbound approach consists of one lane accommodating through, right, and left turns. This lane is 20 feet wide, which provides sufficient space for through motorists to maneuver around a vehicle stopped to turn let~ onto Pauly Drive. The eastbound approach also consists of one lane that accommodates through, fight, and leit turns. The westbound approach consists of one lane for right tums only and one lane for througMeft tums. Turn movement volumes were collected for the Friday evening peak period on Friday, October 23, 1998 from 7:00 p.m. to 9:30 p.m. The existing volumes are presented later in conjunction with the traffic forecasts. NOU-11-19~8 15:51 Mr. Rober~ Copeland BENSHOOF & ASSOC. -3- November ll, 1998 TRAFFIC FORECASTS Trip Generation Trip generation rates were estimated for the current and proposed development using information from two sources. C-eneration rates presented in the Institute of Transportation Engineers (ITE) publication Trip Generation. 1997, were used for the bowling alley, retail store, and frontier center. An article entitled "Movie Theater Trip Generation Rates" by William E. Baumgaertner, which appeared in the June 1985 issue of the ITE Journal, provided the generation rates for the theater. These calculated rates were correlated with existing voIumes at the Market Boulevard/Pauly Drive intersection for reasonableness purposes. Based upon the data collected and prior experience, we determined traffic analysis needed to be performed for the following two hours on a Friday evening: 7:00 to 8:00 p.m. and 8:15 to 9:15 p.m. The first hour experiences the highest overall intersection volume. The second hour was the peak hour for exiting traffic from the Cinema. Table 1 presents the trip generation calculations for the existing uses, and Table 2 presents trip generation projections for the proposed development. Subtracting the existing from the proposed, the net effect of the proposed development will generate an additional 387 trips during the 7:00 to 8:00 p.m. hour and an additional 481 trips during the 8:15 to 9:15 p.m. hour. In addition to presenting total trip generations, Tables 1 and 2 also indicate the expected proportion of trips entering and exiting the development. These in and out proportions are based on ITE data and our experiences. TABLE 1 FRIDAY EVENING TRIP GENERATION FOR EXISITING SUBJECT PROPERTY Time Period 7:00 - 8:00 Trip Trips Entering Exiting Use / Size Rate Generated Trips Trips Cinema / 8 screens 53.92 431 250 181 Bowling Alley / 24 lanes 4.5 108 90 18 Totals 539 340 199 8:15 -9:15 Cinema / 8 screens 67.4 539 242 297 Bowling AlIey/ 24 lanes 4.5 108 90 18 Totals 647 332 315 NOU-11-'IBgIB 15:32 BENSHOOF & RSSOC. 612 832 9564 P.05z09 Mr. Robert Copeland -4- November l l, I998 TABLE 2 FRIDAY EVENING ~ GENERATION FOR PROPOSED DEVELOPMENTS Time Period 7:00 - $;00 Trip Use / Size Rate Cinema / 16 screens 53.92 Retail / 9000 sq i~ 4.93 Frontier Center/6000 sq R 4.93 Totals Multi-Purpose Keducfion Net Tdps Trips Entering Exiting Generated Trips Trips 863 501 362 44 25 19 30 17 13 937 543 394 11 6 5 926 537 389 8:15 - 9:15 Cinema/16 screens Retail / 9000 sq i~ Frontier Center/6000 sq R Totals Multi-Purpose Reduction Net Trips 67.4 3.94 3.94 1078 485 593 35 I1 24 24 7 17 1137 503 634 9 3 6 1128 500 628 Trip Distribution To determine directional distribution of traffic movements through the intersection of Market Boulevard and Pauly Drive, we correlated the existing intersection volumes to the population distribution in the market area for the Cinema. Specifically, we expect that about 60 percent of the development trips using the intersection of Market Boulevard and Pauly Drive will be oriented to and from the south on Market Boulevard. The remairfing 40 percent are expected to be oriented to and from the s_oath: rJo~r,~ ,~ Traffic Volumes The Market Boulevard/Pauly Drive intersection traffic volumes for the two p.m. peak hours were developed for the 1998 existing levels and the post-development levels. All seenaxios are based on the traffic counts recorded at the intersection. The 1998 existing levels are taken directly from the traffic counts. The expected development traffic was added to the existing counts to produce the post-development traffic volumes. The resultant traffic volumes are shown in Figure 1. BENSHOOF ~ ~SSOC. 7:00 - 8:00 PM PEAK HOUR 612 8~ 9~6~ P,06/09 ~OT TO PAULY DRIVE OR) ~ · J,LL ( 1/1 ~, 15/11s 8:15 - 9:15 PI4 PEAK HOUR LEGEND -- 19~8 E~SllNG POST-DEVELOPMENT 4/4 41/41 J,I,L 47/92 ~--- 4/4 , 94/265 PAULY DRIVE CHANHASSEN PROPERTIES, CLC ,~BE~HOOF & ~IATE$, INC, TRAIt~rPORTATION £)i$INEER,B &ND pl.~l{ N£R6 TRAFFIC STUDY FOR CHANHASSEN CINEMA DEVELOPMENT FIGURE 1 EX)STING AND POST- DEVELOPMENT TRAFFIC VOLUMES FOR INTERSECTION OF MARKET BLVD/PAULY DR NOU-11-199B 15:32 BENSHOOF & RS$OC. 612 B32 9564 R.07/09 Mr. Robert Copeland -6- November 1 I, 1998 TRAFFIC ANALYSIS The Market Boulevard/Pauly Drive Intersection was analyzed to determine thc effect of the proposed development on traffic operations. In order to better understand how the intersection operates from an overall traffic capacity standpoint, a capacity analysis was performed using the methodology presented in the Highway Capacity Manual. A capacity analysis is a way to determine how well or poorly an intersection is operating. Capacity analysis remits are presented in terms of level of service, which ranges from A to F. Level of service A represents the best intersection operation, with very little delay for each vehicle using the intersection. Level of service F represents the worst intersection operation, with excessive delay and large queue lengths. Peak Hour of 7:00 to 8:00 PM Under existing conditions, all movements, except the westbound through/left turn, at the unsignalized intersection operate at a Ievel of service B or better during this p.m. peak hour. The westbound througMeft turn movement operates at a level of service C with minor delays. Using existing geometries under post-development volumes, all movement, except the westbound througMef~ turn, continue to operate at a level of service B or better during this time. The westbound througMef~ turn movement falls to a level ofservice F. This means excessive delay and vehicle stacking for these movements during this time period. After determination of the level of service F for the westbound througMeR turn movement, the post-development traffic volumes were compared to the peak hour signal warrant volume thresholds. The peak hour signal warrant compares the major street and minor street volumes with a set volume level, which is based on the number of approach lanes provided. If the volume level is met, a signal may be considered for the intersection. In this case, the volume level for the peak hour signal warrant is not met. Peak Hour of8:15 to 9:15 PM Under existing conditions, all movements, except the westbound through/left turn, at the unsignalized intersection also operate at a level of service B or better during this p.m, peak hour. The westbound through/left turn movement operates at a level of service C with minor delays and a small amount of stacking. Using existing geometrics under post-development volumes, all movements, except the westbound through/lef~ turn movement, continue to operate at a level of service B or better during this later peak hour time period. The westbound through/leA turn movement drops to a level of service F with the ex~ra volume. This, once again, means excessive delays and vekicle stacking for these movements during this time period. As before, the post-development volumes for this time period were checked against the peak hour signal warrant volume. The warrant requirements are not satisfied in this case either. NOU-11-1998 15:~3 Mr. Robert Copeland BENSHOOF & RSSOC, -~- 61~ 83~ 9564 P.OSx09 November 11,1998 CONCLUSIONS Based upon the analyses presented in this report, we have developed the following conclusions: All movements at the intersection of Market Boulevard/Pauly Drive, except the westbound through/lef~ mm, operate at an acceptable level of service (B or better) during both time periods for existing and proposed developments. · The westbound through/left turn movement operates at a level of service C for existing traffic volumes during both time periods. * The westbound through/left turn movement tails to level of service F under post- development volumes during both time periods, with considerable congestion expected. To help alleviate the h/gh volume and poor level of service for the westbound through/left turn movement, a continuous link from Market Boulevard to Great Plains Boulevard is necessary. Tkis link should be fi'ce of conflicts caused by parking maneuvers and therefore should have no parking spaces immediately adjacent to the drive aisle. This roadway could be established in one of the following two ways: a) A private drive that would connect to the Chanhassen Dinner Theater access and' continue to Great Plains Boulevard. b) A public extension of Pauly Drive that would connect directly with Great Plains Boulevard. The City of Chanhassen is considering development of the area east of the subject area and south of the Chanhassen Dinner Theater. The public drive would serve any new development as well as the Cinema and the Frontier Center° As shown in Figure 2, the current plat drawing for the subject area indicates that the Pauly Drive fight-of-way comes to an abrupt end near the east edge of the Cinema building. If true, this is an awkward, non-standard situation. It is understood that the Pauly Drive right-of-way may not extend as far east as shown in Figure 2, rather, it may terminate at the east edge of the bus turnaround on the south side of Pauly Drive. This latter situation represents a normal type of termination for a public right-of-way. The analyses presented in this report indicate that the westbound through/left turn movement would be expected to fall to a level of service F during peak hours. We recommend an east- west link from Market Boulevard to Great Plains Boulevard to avoid this problem. If the Pauly Drive right-of-way terminates at the bus mm-around, then either option for extension, as described above, would be sufficient. If the right-of-way extends to the abrupt ending, as shown in Figure 2, then a public extension is desked to correct this awkward situation. The extension would preserve the operation of the Pauly Drive and Market Boulevard intersection. Furthermore, we are confident that the intersection at Great Plains Boulevard serving the new link would operate at an adequate l~vel ofserMce. d~'l~l .LV'Id 1N~l:ll:lrto :~ 9~no].-I AO~IS OI-I_-IVI:II 0'10 'S:ILLU:IdObld 11/18/98 WED 14:§1 .NOU-1E-1998 09:~ 612 832 5301 COPELAND BUILDING ~ENSNflSF g RSSDC. 612 ~3~ 9564 BENSHOOF & ASSOCIATES, INC. TRANSPORTATION ENGINEERS AND PLANNERS 7301 OHMS LANE. SUITE SOO / EDINA, MN 5543g / (61 :~) 83~_-9a58 / FAX (6~9) 83~.gq6a 0O2 November 18, 1998 ~FE~TOmL£: 98-79 Mr. Robcr: Copcland Copcla~d Bul]t~i-E Corporation $300 Hyland C~ens Ddv% Suite 200 Bloomington, ~ 55437 Supplementary Commcn~s to Nowmber 11, I998 Traffic Report oft. he ProPos,d Ctmah,~sen Cinema Bxpansion De. ar Bob: As indicated in our Nov,tuber l 1~ memorandum, wg suggcstgd an e,a~-wcst corridor along Pauly Ddve that ultimately connects Market Boulevard and Great Plains Boulevard. Thi~ traffic connection would alleviate the ¢~mat~d high volumes and poor level of service during peak times at thc Pauly Drive/Market Boulevard intersection. Wc further recommended that this connection Be free of conflict% with no Mjaecnt parking ~xlls, along t.he length o£the corridor. An alternative to this suggestion is to establish an ~ast-west corridor with parking provided on eno or both sides or,he roadway. Un&r both options, the int,r~ectioa of Pauly Drlve and Market BouI--vard and the intersection of Grear Plains Boulevard and ~c new access road are expected to provide adequate operation. Thus, either option would provide sa~fa~tory operation relative m the public roadway system. Thc principal advantage of the firgt akemative, with an unimpeded corridor, is an increase in overall salhty. Without the park/nC spaces, traffic is fr~ from dlsmpfion by backing vehicles or unexpected pedestrians walking into &e road from behind parked vehicles. Also, vehicles waiting for other vehicles to exit parking stalls would not cause traffic delay and obstruction. From a traffic standpoint, ttfi~ is the mort desirable option for vehicle and pedestrian safety and for the ability oftra~c to flow without the previously mentigned delays. In the second option, with parking provided on one or both sides, the main benefit is greater availability of park/nc ~._n_lls. Though specific layout plans have not at present been prepared for both options, we expect thai:the second option would provide more parking ~paces than with the unimpeded roadway corridor. ! tm~-t th/s clarification will assist furtl~r consideration of thc proposed cinema expansion by City offld'als and your-qelt Let me know if you need any further assistance, Sincerely, BE~SHQOF ~ ASSOCIATES, [NC. kmes A. Bemhoo£ Economic Development Authority - January 28, 1999 Mancino: Well we appreciate that. At the TIF seminar I went to, there were a lot of cities there, and Councilman Senn was there, that they did say that a lot of the cities hadn't figured out yet you know what the deficit would be and the League of Minnesota Cities really hadn't heard much yet. So you're being proactive in bringing us there. Thank you. Boyle: Thank you. CONSIDER TIF ASSISTANCE FOR PHASE III, ENTERTAINMENT PROJECT. Boyle: Todd, are you going to brief us on this one? Gerhardt: Sure. Mr. Chairman, EDA members. At our last meeting there were several questions brought up. Staff put an emphasis on that meeting to give you a background on what I would say are the planning type issues. Architectural style, parking layout, traffic, and uses. At this meeting we're going to concentrate on the numbers so what I'd like to do is to answer your questions that were raised at the last meeting. Give some history on how this project all got started, and then take some time and use the big board and show you the numbers that staff has come up with in this proposal. At our last meeting there was a question regarding the breakdown of ownership for the proposed movie theater development. The ownership is Bob Copeland, Ray Mithun, Jr and Mike Delaney. There was also a question that Mr. Copeland had marked the TIF application incorrectly and that the applicant had filed for bankruptcy and Mr. Copeland and his partners have never been involved in a bankruptcy or loan default. As to the third question, I explained in detail the public purpose of why the EDA should consider giving this project. In your packet under Attachment # 1, Mr. Copeland has gone through his analysis of why TIF assistance should be used for this project based on the public purpose guidelines under TIF laWs. Staff had also completed the advantages and disadvantages of the project. Some of the advantages that staff had highlighted was the improved overall aesthetics of this area. Currently I have laid out a couple of pictures of how the area looked here in the last couple of weeks and for EDA members, if you haven't driven by there lately. Entrance to the city's night and weekend activity and drawing over 250,000 patrons each year. You know with over 6,000 employees in our business park, our restaurants and businesses do a very good job during the noon hour in servicing, or being serviced by those employees in our business park. At night our downtown area is a little slower and putting in additional theaters that would provide additional night activity and drawing patrons to our downtown businesses. With the proposed project you would see an additional 10,000 square feet of additional retail,that the city currently doesn't have and would provide services to our residents and businesses. Providing TIF assistance may provide for a higher quality building than what our existing codes may provide. And improve the utilization of the property. Currently right now it's used as a bowling center and bar and with the additional 10,000 square feet of retail and the additional movies, there can be a question that we already have 8 and 8 more you know, what benefit does that have besides bringing more people to the downtown. So that's kind of an advantage/disadvantage but definitely the 10,000 square feet of additional retail would be an advantage. Each project would be a pay as you go without sharing the tax increment from the Timber Lounge and hotel expansion. I'll explain that in more detail as I go up to the board and who how that can work. Some disadvantage to the project. It does need a substantial amount of economic investment on the EDA's behalf. A loss of bowling 13 Economic Development Authority - January 28, 1999 in the community as a recreational activity. There's no question in the original plan that having a restaurant and a bowling center and a little bit of retail, it really lent itself to a true type entertainment situation. Increase in traffic can be good for the patrons. Can be bad if this project is really successful and that we may have to put a signal out onto Market, additional costs associated with that. That's it. That's all I could come up with for advantages and disadvantages. Right now I'd kind of like to go through the numbers unless the EDA members have any questions on my preliminary report. Boyle: Any questions at this time or should we let Todd go further? Gerhardt: How we got to this point, started back approximately 6 years ago when we started with the Highway 5 corridor group. The Highway 5 corridor group...to look at how can Highway 5 develop in this community. What sites should we preserve and with the assistance of Bill Morrish from the University of Minnesota Landscape School, he came out and assisted us in windows in the rooms and corridors to preserve along that highway and the group got on a bus and drove up and down the corridor. They could see which of those creeks and tree lines that they wanted to preserve. And one of the other things that that group highlighted as they were driving up and down the corridor and as they sat out here at the intersection of Market and Highway 5 was how unattractive the bowling alley and the back of the Dinner Theater and the presence that showed to individuals sitting at that intersection. So through the efforts of Bloomberg Company, Dan Dahlen, Lotus Realty and the HRA at that time, we sat down with the owners to try to work out a deal where we could come in and pay for the necessary parking lot improvements and facade improvements on the bowling alley...retail center. Frontier Building. And as we moved along, this was all going to be one project. And with that, as we got into it deeper and deeper, the bowling center with some of the issues of changing ownership and filing bankruptcy led to, we had to start separating the projects individually. Bloomberg wanted to work his... The movie theater wanted to get going right away and Dan Dahlen...was working with Pauly's in trying to get his package together. So everybody wanted to kind of be treated separately and we brought it back to the HRA and City Council and said yes. We could separate these. Well, what also got separated in that process is that we got away from the original architectural treatments that were originally approved. And everybody else thought that they needed to do the improvements that would work for the tenants that they were working with and that would fit in their budget. So where we're at now is, as you drive by out there, you can see Bloomberg's retail space is starting to take shape. They've got the brick out there. They've got the new windows in and starting to see the mansard go up and it's to me...The movie theater is open. It's operational. Mancino: It's got a sign. Gerhardt: It has a sign. Engel: Does it have all the letters working? Gerhardt: It has the letters on the sign and Mr. Copeland feels that for him to stay a vital part in the downtown area for the long term, he feels he needs 8 more theaters to stay up with what the 14 Economic Development Authority - January 28, 1999 market is doing. I don't know if that's correct or not but Mr. Copeland feels it's important. And with that we encouraged Mr. Copeland to include retail as a part of it. This is a mixed type use. It's a mix proposed and we asked him that he include that and he has agreed to do that and that he would do the retail out front with the...in concert with the movie theater. Now with that, what I'd like to do is just explain to everybody that hasn't been here since the beginning of kind of how tax increment, how this tax increment district got created. How the money flows from there and also how Mr. Copeland and I have talked over the last couple of months of how we kind of changed the deal and how he wants to stand alone and take his own increment from both of those. Mancino: Todd could you include, Mr. Chair if this is okay. Could you include one other thing. Could you talk a little bit about two things that I guess I'm getting old but a little bit about parking and the, you know what we have done as a city to increase the parking and about the road that would continue over the Bloomberg property and how that would flow. Okay. At the end of the money, the fiscal part if you could also talk about parking and kind of, I get very mixed up who owns what as far as the parking part and improvements that have already been made .just at the end. Thank you. Gerhardt: Well back in 19, I think it was 95. The HRA at that time agreed to create a new tax increment district. When you create a new tax increment district, you first have to decertify the bowling center, the movie center phase I, hotel expansion, Timber Lounge and Bloomberg retail. All those properties were included in the original downtown tax increment district and...we're dealing with so what happened is that.., took those parcels out of that original downtown tax increment district. What happens when you do that is these properties in 1995, you established a new base value. What that base value does is Timber Lounge in 1995 was paying $19,000.00, no. Timber Lounge was $6,000.00... The hotel expansion, before the hotel was here there was a vacant piece of land and they were paying $2,901.00 in taxes. The retail, Bloomberg Companies. This property was paying $49,669.00 in taxes. The bowling center was paying $67,000.00 in taxes. The movie theater was paying $19,000.00... And so these dollar amounts were coming to the downtown TIF district and that totaled $146,175.00. When we decertified that district this money is now going to the school district. It's going to the county. It's going to the city. And it's going to other. This $146,000.00 is now being paid to those.jurisdictions. Now what's happened since then is the Timber Lounge has remodeled and they are. Mancino: Under percentages for school, county, city is what the normal percentage is. It's just regular tax, property taxes? Gerhardt: 50% school. County, 30%. City, 18%...and then 2% other. Timber Lounge is now creating $19,057.00 in increment. Hotel expansion is creating $64,904.00 in increment. Bloomberg Companies will be creating $30,927.00. And movie theater Phase I will be $40,458.00. The old plan the bowling center was going to create $30,927.00. So that's a grand total of $186,273.00. And with Mr. Copeland's proposed development, that has intensified the use of that than what was originally proposed with the restaurant, bowling center and little bit of retail. He will now be creating $105,000.00...so with that $105,000.00 would, if he was to receive the $105,000.00 to write down. What we're trying to accomplish here is the 15 Economic Development Authority- January 28, 1999 improvements that are proposed for Bloomberg Companies. What we're trying to pay off is the $360,000.00 worth of improvement for parking lot, landscaping and facade treatment for Bloomberg. On the movie theater portion it was $540,000.00. And the bowling center it's $665,000.00. Senn: Well stick the other two in too. Hotel expansion and conference rooms. So you have the whole picture. Gerhardt: Well, okay. Theirs are, it's three years of this. At this time it's three years. Bohn: From '95. Gerhardt: This times three years. This is roughly $60,000.00. Engel: 58. 57,000. Clayton Johnson: Are you on the Timber Lounge? Gerhardt: Yes. Clayton Johnson: What were you showing for that? Mancino: Increment of 19. Gerhardt: That has gone up this year. Senn: What we're talking about is the incentive that went back to each project and it's three years worth of increment which is approximately $60,000.00. Mancino: ...60 for the Bloomberg was for what? Gerhardt: It was to offset the facade improvement here along the front, and the parking lot improvements here. Mancino: So 540. Gerhardt: lot. Mancino: Gerhardt: Senn: 540 was for facade improvements here, boardwalk. When I say facade...and parking And parking lot. And 665? 665, facade, boardwalk, parking lot improvements. That was in the original plan. 16 Economic Development Authority - January 28, 1999 Gerhardt: In the original plan. Mancino: Alright, thank you. (There was a tape change at this point in the discussion.) Mancino: ... so we get that increase from the 18 to the 25%. Gerhardt: The increase referendum dollar amount would go to the school district... Mancino: Okay. Let me ask you another way. If somebody came in, a different applicant came in and developed the bowling center privately. Didn't want any money. How would that, the taxes generated, would they be any different? Would the market value be any different than what we're seeing here? I mean does that make sense? Gerhardt: Does it intensify it more? Mancino: Yeah. To intensify the use more. Gerhardt: Yeah, I mean if you put some AAA office stuff in there, you could get the price up there. You know some real class A office space would pay probably more than a movie theaters. Retail space maybe like Byerly's would probably pay more. Mancino:... trying to understand that. Ashworth: If that were to happen then you'd have two choices. You could take those dollars because you'd still be collecting them, and pay off any existing loans, notes that you have and therefore collapse those early. Or take that particular parcel and decertify it and put it right back on the tax role immediately. Gerhardt: Your two choices here...take these guys out of the equation and you take the increment from here and here and you pay Bloomberg off earlier, you could do a couple of things. You could take this and pay Mr. Copeland off earlier or you could take this and there's two little buildings over here on the back side of the Dinner Theater that you haven't dealt with yet. And do something over there and try to encourage an office building to come in there. Or you could just put these on the tax rolls is another option... So what we do is come in, number one we decertify this district and everything came back on, you would come in here and say, Laurie down at the auditor's office, we've decided to decertify these three properties and we'd like them back on tax rolls again. Mancino: Does it cost us to keep decertifying? Gerhardt: Just attorney fees... Mancino: That costs us. 17 Economic Development Authority - January 28, 1999 Boyle: A portion of that 25%. Gerhardt: Yeah a portion. Not all of it. Senn: Why would you ever decertify it when you could use that money and go back into District 1 where you took it out of in the first place to help solve the deficit problem? Gerhardt: Yep, you could do that too. Senn: I mean by the first decertification and taking it out of the district in the first place, if you hadn't done that, right now a majority of the $2.5 problem wouldn't exist. So I mean it's just, if you want the whole history. Mancino: Gerhardt: Mancino: That's water over the dam. Hey, the 25%, are we limited? Then you don't have problem in the future. The 25%, do we, are there any limitations on where we can use it? The money that we make in the administration fee, the 25%, does it have to stay in the district? I mean. Gerhardt: Yes. Mancino: Okay. Gerhardt: 10% can be used for administrative costs. The other 15% can be used anywhere within this red line. Mancino: And only there. Gerhardt: Only there. Boyle: It's very thorough. Thank you. Mancino: Very good. Thank you. Oh! ...can you talk a little bit about, Todd I'm concerned about a couple things. And the road. The road going through and you know will we be at some point down the road, will the city have to come into play and upgrade the road? I mean what improvements are going to again fall back as part of this project and all that kind of stuff?. Gerhardt: ...needed to work that out an issue regarding...I know we had to deal with the access issue here. But how this wasn't included as a part of the project. Mancino: That's just a dirt road now. Can we keep it the way it is, all the way through there? 18 Economic Development Authority - January 28, 1999 Ashworth: ...this type of a cul-de-sac fashion and we did it in such a fashion so that the road came in. You come back up in here. If Bloomberg wanted to take and improve these, they could have access off of that roadway because... Clayton Johnson: No, a little history there was that we originally wanted...first attempt to develop the property and put the road through and the previous HRA didn't want to put the road through. So when we came with the plan that we're currently working on, it's intended that everything would be served off Market Boulevard... Bohn: That's not true. We wanted the road through but we didn't want to pay for it. Vernelle Clayton: ... Mancino: So where are we now with the road? I want to explain the road because I think it's important. Gerhardt: Our road right-of-way stops right at the entrance, the first entrance into the parking lot. The City Council as a part of the approval of this vacated the road, we had road right-of-way up here. They vacated so we could expand the parking. But we never had, we never had right-of- way that would take us all the way over here. Clayton Johnson: For one thing the Dinner Theater's not...The Dinner Theater's still in District 1. Gerhardt: Right, the Dinner Theater isn't but the two smaller buildings and see the PID number for this goes all the way over here. It's like an upside down Florida. Mancino: But Todd, what you have told us, I again it's my memory but is that the road Mil go all the way through. Gerhardt: Will go all the way through once this property is developed. Mancino: Oh, okay. So you're saying with this new development adding, and I'm just going to call it bowling because we've already done movie phase I. The bowling part that you will not be able to, there will not be an improved road whatsoever going out to the east? Boyle: Not as a result of the improvement of the bowling alley. Mancino: We will not be paralleling those two things? Gerhardt: I think that's going to be an issue as this thing goes back through planning commission and city council process through this because we did talk about there would be another potential access, if I remember right, when we talk about traffic that we needed, we needed something to go through here, be it a paved drive or something to allow a...access 19 Economic Development Authority - January 28, 1999 because of the amount of traffic generated from these people to go out. We didn't want them all to go out one way. We wanted it to be diverted to a second alternative so. Mancino: Public safety concern, etc. Gerhardt: Well for engineering, yep. Everybody. Mancino: Yeah, and will there, I'm sorry I don't want to get into too much detail but I just want to make sure that all these things are out in front and who is going to end up paying for improving that road and etc because again that may be added cost due to improving the bowling alley. And just everybody needs to know that. I think it's already included in these figures here. But the 665 has jumped to $1.3 million. Well that's interest. That's with the interest. The $1,390,000.00 is interest. That's the The $1,390,000.00. That includes all the interest that... Gerhardt: Mancino: Gerhardt: total payments over the 22 years. Mancino: That was 14 years. Gerhardt: Okay. Mancino: Gerhardt: Mancino: Gerhardt: Mancino: Gerhardt: Mancino: access. I just want to know how much we have to pay. Okay. Well if it's over the 14 years, including the interest and everything, it's $1,390,000.00. Because it's not really 665 because we're going to end up paying 1.3. With interest. Yeah, that's what I'm saying. That's what our obligation as a city will be. Not $665,000.00. It will be $1.3 million so when that bowling alley is improved we will have paid $1.3 over 14 years. Okay. Interest and principal. And we don't know yet who has responsibility and haven't talked about the east Bob Copeland: The private parties have responsibility. We'll be responsible for... Mancino: For not only the easement but the upgrade and everything. Bob Copeland: Right. 2O Economic Development Authority - January 28, 1999 Mancino: Okay. Bob Copeland: It'd be a private paved access. Mancino: Okay, thank you. Senn: Say Todd if there's any additional infrastructure such as semaphores or anything like that are required in any of the connection points here or anything else like that, there's absolutely no money.., for that? Gerhardt: Well you could use the excess increment for the 15%... Senn: I'm not talking about the upper. I'm talking about now what you're talking about down here. Down here there's basically no dollars in anywhere there to fund any infrastructure improvements if they're necessary or semaphores or whatever. Gerhardt: Nope. It's parking lot improvements, facade and boardwalk and sign. Bob Copeland: We hired a traffic engineer who determined that a stop light would not be required. Gerhardt: And that was with the east access though right? I've been working numbers the last two weeks. I haven't been thinking traffic. Boyle: Well let's, thank you Todd. Let's continue with questions then at this point. Linda, do you have something? Jansen: I don't have any questions, no. Engel: I don't have any. You got them. Good job. Boyle: Nancy. Mancino: My only other one about parking. I just want to make sure that park and ride will stay there and that the work that's been done to date and looking at it that we have no problems keeping the park and ride there and co, you know both uses work out. Gerhardt: Park and ride has a permanent easement that. Mancino: How much of the parking lot does the city own? Can you kind of show that?... You mean they get to go to the, if the movie theater goes in there, they get to go to the movie free? Gerhardt: Well...Here's Market. Here's the entrance to the bowling center. This is that long entrance here. And so they have an easement that runs...the last three rows of the parking. 21 Economic Development Authority - January 28, 1999 Mancino: And that easement is because we as a city own that land or Southwest has bought it? Gerhardt: HRA owned it. Mancino: HRA still owns that. We own that land, okay. Okay. Gerhardt: Right now Southwest Metro, which will be an issue when this retail comes in. They've been parking like this. And so they're supposed to be parking outside this line so we've had discussions with Southwest Metro...to basically renegotiate some of the parking in that area. Retail may want some of the parking over in this area and we'll... Once we have an approved project and know what the uses are, we're going to sit down with Southwest Metro and try to work out this parking scenario. Mancino: Thank you. Boyle: Jim, questions. Bohn: Yes...part of that building going to stay or is that going to be torn down? Gerhardt: I understand the entire building will be torn down. Boyle: Steve. Labatt: My only question was that road and the cost... Boyle: Mark Senn, I didn't mean to pass you. You had already asked some questions but let's come back, I'm sure you have some more. Senn: Not in terms of the parking. Does thiS project as it's now configured meet or not meet parking requirements? Gerhardt: I believe we are short by, I don't remember the number offhand. But we are short, I know it's less than 100. Senn: But it's around 100 though ifI remember correctly. Gerhardt: Yeah. Somewhere around there, yep. Boyle: Didn't we address that last time? I thought we were .... I was under the impression we were not short° Senn: We were short according to parking requirements. 22 Economic Development Authority - January 28, 1999 Mancino: Yeah because Sharmin said her figures were wrong and she came back to us and gave us a sheet Councilman Senn that said that her, it was in the Minutes that I read that were attached. That her first calculations were incorrect. I don't have that sheet though but I think in the Minutes I can't remember where. Let's see. Engel: You mean 700 rather than the 900... Mancino: There you go. But again we can kind of address that and make sure that that's. Gerhardt: Yeah, I mean the parking, we decided, I thought at the last meeting that the parking issues, you know a lot of the architectural style and things were going to be more addressed at the planning commission level. I'm sorry that I'm not up to date on the parking. Boyle: At the beginning of your presentation, Todd you had recommended that we focus on the numbers tonight. The economic portion of this recommendation and I think that's a very good recommendation and I think we probably should stay in those guidelines and focus towards that arena as it applies to our authority. Mancino: ... Boyie: And that's in the ballpark. Gerhardt: Well I won't bring back anything that moves these numbers up any higher. Boyle: Promise? Has the tape run out? Gerhardt: Probably. Boyle: Mark, were there further questions before we? If there are no further questions we'll move on to comments then. Or discussions, excuse me. Go ahead. Bob, would you like to come up and? Bob Copeland: Well Vernelle and I... Boyle: Okay, excuse me. Vernelle. Vemelle Clayton: I just have to make one comment on this sheet. It ties in with this project. There are good things on this sheet as well and as you beat your head against the wall, there's one that Don handed out earlier, go out and stand out in the street and look up and down. Check what we have out there. Main Street is something I think we're all proud of and it wouldn't there if you didn't have this problem. Also want to point out that we've never had enough chance to toot our horn here, and I'm wearing a different hat now. I'm wearing a Market Square hat. You have a million two that came in in 1997 and that was a result of the courageous effort on the part of the former HRA's to lend those folks 700 some thousand dollars to correct the problem at Market Square which was partly due to the fact that a bridge had been buried there and it was 23 Economic Development Authority - January 28, 1999 returned to you at a million two which I think is about as good an investment during that period of time that the city made. It was basically 10% per year and it paid cash then since. So there are good things with TIF. There are lots of mysteries with TIF. There are complexities with TIF and basically it comes down to how can we serve best the economic welfare of the city of Chanhassen. Todd explained a lot of things that I thought I might explain and so I certainly am not going to go back over it but there are a couple things that I just want to mention. When the district, when the old district was decertified and we created this new district one of the things that we had to do was prove that it warranted being created and to do that a certain percentage of the buildings had to be in a sense sub-par. That's an abbreviation or summary of various criteria that you have to go through to see just exactly what you have to have a redevelopment district. One of the buildings that was sub-par and helped the district become qualified was, and I haven't seen the wonderful picture but I think you have a picture of the problem we're trying to correct. So to some extent it would be somewhat incongruous at this point, having used that building as a reason for creating the district in the first place, not to give TIF to this particular project to in fact correct the problem for which we created the district. We have had explanations of pay as you go. I think it's fairly clear. I think you've done a good job of explaining that. ! had meant to explain it because it's not really pay as you go from a developer's perspective. It's go, pay and then get. You go with the project. You pay for the project, which is one of the reasons you have more interest than you might have if you just went out and bought a house. Bought a house for $100,000.00. You pay off what? 200 some thousand. Here you pay a little more because there's a lag time. He's going to pay his taxes. The first year he'll pay taxes on the old rate. The next year he'll pay taxes on the new rate from which the TIF is extracted and the following year he'll get the money. So they're filling that gap. You have a little more interest on this than you otherwise would have. The city on the other hand has very little risk in what it has to pay out. It doesn't pay out anything that it doesn't get. It only pays what it gets. It passes it through. So with that I think that I want to talk a little bit about how we came, we've been on the...ofa dilemma a little bit with this project, and what we've talked to you folks about. The first meeting we came to you with plans and with a plea and with an explanation as to why we needed the TIF. How we met the but for. We had planned then for the next meeting simply to answer the questions that were left when the request was tabled. In the meantime we have a couple new folks on the group here and so we felt we needed to go back over a few things, but we're still taking to heart the comment and the general agreement and understanding that we're focusing on economic issues and we aren't so much focusing on the architecture as Todd and you folks just discussed and so while the plans are here, are they here where they can see them. I don't know what's up here. I don't know what they're looking at... So we have the plans so you can see what will be proposed. You see it in it's form as it will be presented to the planning commission, but not necessarily as things go from time to time as it will be when you come out of the planning commission. So that is the direction that everyone has decided to take here to go through planning...you folks first see frankly what kind of building these folks can afford. The but for, so while to some extent we thought well okay we've had the project approved before. We're not asking for any more money. Perhaps this is kind of an easy task. And perhaps it should be since we are meeting what the goals of the district were to create, to clean up this awful looking building. On the other hand we do recognize, and it's reasonable for you to revisit the issue because there has been changes. Some of the changes have somewhat clouded the vision. Some of them are reasonable to explore more thoroughly. The question though that we have to ask for 24 Economic Development Authority - January 28, 1999 is if it's going to be built without TIF, what is the but for. Part of the but for is very easy to answer. Bob has put together a list of, an analysis of the numbers. How it works. How it doesn't work. The rest of the but for though is a little more subjective and it's one that does affect the overall economy of what happens here in the city because but for the TIF Bob has two choices. He can cancel the purchase agreement and go with his eight screens and we've left at the city with the ugly building for, in my judgment, at least another couple of years. That's because of the time it takes to get another group put together. Invariably the other group that we get put together, they put together, the other, whoever puts together, will come back to you and say, okay. We want to do this now and but for the TIF, we'll not do it. So you might find yourself right back where we are today if the TIF is not given to these folks, on a plan that we can have in place. Get the taxes paid sooner. Speaking of paying taxes, one of the risks here is that this particular building that we're dealing with at the moment has been the one that's been the least reliable for paying taxes period. The other alternative is that, that Bob has, is to go ahead but with a lesser building. Lesser in intricacy of design. Lesser in quality. And something that probably would not be as aesthetically pleasing and therefore would not have as good an impact on our downtown as a TIF sponsored building would have. So let's discuss a few of the other issues then that have clouded the issue. First of all, on the project that you were originally providing the TIF it was to redo the parking lot, redo the facade, add a boardwalk and there was a mixed use of retail, bowling and restaurant. The current use is retail, a little bit more movie and at the request of the city I should remind you, no restaurant. So the question is, is this a viable, economic development that should be supported? The question is not, did we support the prior plan because there was a restaurant and now there is none because the restaurant was removed at the request of the city. The question is not did we support it before because there was a bowling alley and now there is none because the city's files and ours is full of reasons why the bowling alley is not a very good, an economic investment. While there have been several offers that have come forward with a thought they might take a crack at managing a new bowling alley, each of them has come away saying it would take more money than you could recover in any reasonable period of time to bring the bowling alley up to speed. They also come forward with the response that 24 lanes, which this is, is the bare minimum that you can have in one facility and expect to be a success. Even if it were a success, the value of the rents that a successful bowling alley can pay are so low that it does not enhance the value of the building. If you know buildings value in commercial, commercial buildings values are determined by the amount of rent that is paid. The question is not either did we split the prior project because the retail, of the retail component because now we have something that in fact has more retail. And so to the question is this a viable economic development that should be supported when comparing it with a prior proposal, the answer is yes. Some other questions have come up and this has come to where there is difficulty on our part in trying to answer questions because we can only respond to what we've heard. We haven't heard a whole lot of questions but we have heard a couple of questions. One is math and we will deal with that when we get to the planning commission unless someone has a comment and a reason to talk about it tonight. We'll respond to that at the planning commission. The other is use and we've heard a variety of reasons why romantically we'd like to stay with what we have. But that's sort of a, and I too went through that with this project. We've all gone through a period of what one experiences is somewhat like a death in a family. First you're sad. Then you're mad. And then you get to the part where okay, let's get on with life. So we all went through a period of okay, this isn't quite what we had in mind before. We don't have...up front. 25 Economic Development Authority - January 28, 1999 We don't have the cute boardwalk. We don't have all the little things that we planned to have inside. But we don't have that because it wasn't economically viable and we won't have it because the folks that do those sorts of things need more space than would be available if it were left that way and I just talked about how a bowling alley is not very economically viable. True, it's one less thing you can do in downtown Chanhassen but it's not economically viable. The other area is, the other thought that we've heard and someone else is going to talk a little bit about that but I would just mention a little bit...as Bob told you last time when we were here, they are closing eight screen movie theaters in many locations because they are too small to compete. Sixteen screens do lots of little things for us, in addition to making sure that we have an investment that has already been made more secure. We will see better movies. There is a thing going on I understand in the movie industry where if you have fewer than 20, you don't get some of the first run movies. But if you have 20 and you can consistently assure that vendor that you'll be taking those movies, they put you on the list for all the good movies. The other issue on the regional draw is one that I love to talk about but I think Steve wants to talk about it a little bit and so I will just say, in my summary on that, that we are a regional draw. Steve can talk about some of the institutions that we have here in town. Some of the businesses that we have here in town that are regional draws and I can only say to you from my experience that I would hope that you would take the same approach as I do in my business which is I'm responsible for bringing a fairly large number of businesses and tenants to this town. I feel responsible for their success. We as a city are responsible for encouraging and bringing these folks to town and we need to follow through to make sure that they succeed. It's not known to most people that most businesses here in town are not making a whole lot of money. They knew that, most of them. The ones that don't know, we counsel with them and tell them that I hope that you have a reserve so you can live through the lean years until you get to the point that you want to be. But most folks here in Chanhassen are positioning themselves. They're positioning themselves for our future growth and they're positioning themselves for the growth from around the region that will come from them. And you'd be surprised how many folks in town here rely on a region and not just Chanhassen. In fact there are more people in town doing business that rely on more than Chanhassen, and always will, than rely on just Chanhassen. If we had businesses, only businesses in Chanhassen that relied on Chanhassen businesses, we would get by with strip centers. One of the businesses that I just learned of and it's kind of interesting so I'll pass it on is a business that moved here from Excelsior and that's the Sampler. She has people coming here from Japan. If they are in the United States, they come to her store. And that is truly a regional shopping center so, first they don't have any money anywhere to spend so I don't know why we care about that. But so in summary I do think we do have to think of a broad view. Not short view. Commitments that are previously made to folks and just what this will do economically for our city and I think it's exciting. You all know I worked on the other plan. I liked that plan but I think it's terribly exciting to put Chanhassen on the map with a 16 screen theater. Boyle: Thank you Vemelle. You commented, Steve did you have some comments? Steve Berquist: I'm Steve Berquist. I live at 7207 Frontier Trail. I really didn't know I was going to be introduced, nor did I know for sure that I was going to make comments. I thought perhaps that I would and I have made some notes. Not necessarily in any particular order so you'll have to bear with me as I go through them. The first thing I want to tell you, I want to be 26 Economic Development Authority - January 28, 1999 completely up front about this is, and I'm not here as a former councilmember or EDA member. I'm not here as a mechanical contractor, the HVAC contractor that did the original theater, although we did. I have no idea whether we've even looked at anything regarding the tear down and the rebuild. I'm not here in that regard. You'll have to .just weigh in my comments accordingly and if you think I'm biased, you're certainly welcome to discard them. But I assure you I'm up here as a citizen. The first note that I made, oh the other thing I wanted to do. I really wanted to bring a piece ora computer paper with the fold out so I could...have them all fold out like I did at the original, at the State of the City thing. Everybody.just groaned... Anyway, the regionality. Senn: I'm kind of glad you didn't do that. Steve Berquist: Well it would have been funny. But that's alright. Vernelle talks on the regionality issue. We are a regional draw. We have the Target. We have the Byerly's. We have other draws, the Dinner Theater. Many, many reasons for people in all areas of this part of the suburb ring to come to Chanhassen. The decision regarding our regionality was made far before I sat there or you sit there. Now, in my opinion, the question is how do we insure the vitality of our, of what we have created as our regionality. So I'm worried about that. I'm concerned that the multiplexes of commercial theaters, I've got to make sure I read my notes here. I'm concerned that in the event that this project does not go forward, that what could happen, again as a citizen, is that 4-5 years down the road that we'll be sitting here, you'll be sitting there talking to some other developer about the redevelopment of not only the bowling alley, but also what is currently the existing 8 screen theater. And from a citizens point of view, I w~ould hate to have to look at that reinvestment again. I don't want that to happen. I don't look at this as corporate welfare. I know at some point somebody had made that comment. This is not corporate welfare in my opinion. Again, increment is only returned to the developer if the valuation per tax dollars are generated. Do we got an eye sore there? This is, Jim you're nodding your head. You know, everybody knows what that place looks like. I mean to us, who drive it every day, who look at it every day, we have a tendency to look right past it. But believe me the people that come through Chanhassen that live in other areas and look at that building, don't look right past it. It's an ugly eye sore and it needs to be cleaned up. Let's see my starred items here. I want to talk very briefly about other communities continuing to offer incentives, and other communities even looking to annex land for the enhancement of their commercial, industrial tax base. I think we're foolish if we don't believe that they're going to be offering tax increment to, on that land. To help themselves remain economically viable. Now I say that not only with this project in mind, but this is a comment that I thought of when you were talking about the original proposal with Eden Trace. Not that I don't think affordable housing is a very important component to include with the project but I don't want to sell the tax increment tool short. I'm afraid with the hot button, the hot phrase being affordable housing, that that may happen. I look at this project that's before you as a movie theater expansion and the retail component and I think back on the original project that we all looked at and fell in love with. The Frontier Building, the movie theater, the Pauly's restaurant. We all loved it. We all thought it was a great thing for Chanhassen. We looked forward to how much it was going to draw our downtown together. How many people it was going to bring to our downtown. How it was going to affect our economic vitality. I look now at this project and I really believe that this is a better project. This is a superior project to 27 Economic Development Authority - January 28, 1999 what we agreed to back in 1996 but never came to fruition. And I would urge the commissioners to work towards an agreement with the developer and get this thing going. Lastly, two quick points. Three quick points. The Mayor mentioned the revenue. Tax revenue flow into the city, and I just wanted to, I'm sure it's all on the forefront of your minds but you need to keep in mind the other benefits associated with the vitality of that area. We have a significant piece of land on the other side of Highway 5 that is largely at this point undeveloped. We have the CR James piece that for lack of investment is just sitting there vacant currently. Nobody wants to take the risk to put anything on it. We've got the Boston Market piece that went down, for whatever reason. It's down. With the enhancement of this particular area, there's my phone, pardon me. Engel: Now that's staying in touch. Steve Berquist: I told him to call me if he needed me, and he just sounded like he wanted to hear me say hello. Anyway. It's kind of nice when a 12 year old calls his dad, isn't it? Boyle: Especially when he's at the podium. Steve Berquist: There will be other activities and values received by the citizens of Chanhassen with this project, in my opinion. They won't necessarily be tangible, and I know you all believe that. I simply bring it up. The other thing is that $1.3 million is a case scenario which from what I heard represents a lot of very conservative or worse case criteria. Is that right? $1.3. That $1.3 million represents a lot of worse case stuff. And lastly, and partly leastly, the park and ride. You talk about the park and ride. There was no benefit to the park and ride with the old proposal; We simply had a restaurant there in the existing building and a movie theater. This park and ride, again if you look at the retail element of it, that is a component of it, stands to benefit. It will still be there number one, and the services that typically will serve a park.and ride, and Mark you're very privy to those being on the Southwest Metro Council down there for the development on Highway 5. We stand a good chance of going in that retail and being benefited by the park and ride as well. So that wasn't part of the original concept. I think it's a superior project to what we had originally, and I would urge you to strongly consider supporting it. Boyle: Steve, I think there's a couple questions. Nancy. Mancino: Yeah I just wanted to draw from you. You said, you thought it was a superior project than the original one in '96 and you just said one of it's due to the retail on the west side being close to the park and ride, I understand. And I didn't get your other key points on why you think it is better than the original one. Steve Berquist: One of the big reasons is that we get a new building out of it. You know the old thing, while made out of, you know built like a bunker, comes down and gets replaced by something that's new. Mancino: I just wanted to make sure I got your key points on why you think this is better than the other one. 28 Economic Development Authority - January 28, 1999 Steve Berquist: Well the other thing that I thought about mentioning that I didn't want to necessarily. I think Vemelle mentioned the fact that there was some discussion regarding the loss of a restaurant. To me that's not a bad deal. If you look at the restaurants we have in town now. Adding one more, I don't necessarily think that's a good deal for us. Any other questions? Thank you for your indulgence. Boyle: Thank you Steve. Clayton Johnson: For those who are new, I'm Clayton Johnson with the Bloomberg Companies. And the next door neighbor to this project. And Todd I want to compliment you. That was a great presentation and I think it was very helpful, particularly to the new members and it's helpful even to us who have been through the whole thing. But I think we support the project obviously because we're the next door neighbor. We've been active in the development of all of downtown since 1986, but also in this whole site. The original hotel, the hotel expansion, the meeting rooms and so on and we're currently wrapping up the Frontier improvement. I don't know if you've been back there in the last few days but it's actually starting to look like something. But the other reason that we support it is that we are very interested in taking this thing to the next step, which is the area behind the Dinner Theater which we know is everybody's concern and Brad, from Lotus' office and myself have continued to work with a major developer and a major tenant on a large office building for that spot and we are encouraged by them to continue, and we're going to probably be at the next meeting to make a preliminary presentation. So we're actively pursuing that and we hope that your support for this project continues. Boyle: Thank you. John Rice: I didn't plan on saying anything. Boyle: Well everybody else has, you might as well. John Rice: Let silence be taken as objection. My name is John Rice. My office is in the Frontier Building, 551 West 78th Street. As some of you may know I'm the attorney for Bloomberg Companies and I've been here before on various projects. I have some other history which Don might or might not remember. I sat in the closing on the first development and sale of the bowling alley, representing one of the parties in there. And it has, it needs some help now. But anyway, it would be a vast improvement on that building. That building and it's current use is a drag. The taxes itself are, the usage has demonstrated that it's not going to be economically viable. Mr. Copeland here has already made a substantial investment in the first stage of the cinema. He's made a substantial investment and he chooses putting his own money in to expand that same investment in the downtown to make that improvement next door to his own building. And I would think that that would be a significant factor indicating that there's some good faith work and investment to be done by him and merits your approval. Besides that it's going to work favorably for the overall improvements of the entire south side there that faces on Highway 5. Thanks. 29 Economic Development Authority - January 28, 1999 Boyle: Thank you. I think at this point, let's open it up now for questions please. And again, let's focus on the economic portion if we could please. I'll start on my right side, Mark. Engel. Or Senn, if you'd like to begin. Senn: I'll have you come back to me... Boyle: Alright, Linda. Jansen: I have one question. In mention to the eight screen theaters actually being closed down and that they can't compete. When did that trend start? I'm looking at the cinema just having opened and now it's not viable. Bob Copeland: When we started to plan the cinema there in about 1994... Boyle: Bob, it might be best so this gets on. Thank you. Bob Copeland: When we started planning the existing cinema there in 1994, eight screens was kind of a big deal. At least we thought it was. But since then there is a national trend that is towards larger and larger complexes. More and more screens. And what's happening is that 16 has somehow become sort of a magic number that if you're smaller than 16, you're in jeopardy of not surviving. The 8 screen cinema down in Bumsville is closed. There's one in Edina that will be closed in the coming year. It's an 8 screen cinema. And we're hearing about this and we're seeing it all around the country and 8 just is not a viable number any longer and so this is just a development that's happened I'd say in the last 3 or 4 years, but it's accelerating. And there are going to be fewer movie theaters with larger numbers of screens at those fewer theaters. Jansen: And so as we're looking at some of the smaller markets, and of course trying to familiarize myself with your business I was going through the paper. As I'm looking at all of these smaller theaters in smaller communities, and meaning even our size, you're forecasting that those will be closed because our population will be traveling into say an Eden prairie where maybe they would put 16 screens. Making us less viable. Bob Copeland: Well that's right. There probably will be a 16 screen plus cinema in Eden Prairie in the coming years. I think that's inevitable. But what we're concerned about is that in the coming years there may be a 16 screen at some other community that would be closer than we could withstand. And the smaller numbers of screen cinemas in smaller communities will probably survive. We have a 7 screen cinema in Buffalo that we think will do fine. But at the, this, Chanhassen is closer in to where the population is and the smaller ones that are where the population are are not going to survive. The Brookdale Cinema just closed this month. Four screens. It's going to happen. And it's a national trend and it's not something that we relish. It's not something that we, you know anybody's promoting but that's you know the way it's going. Mancino: What's a single reason for that? I mean why would I want to go outside of my own city of Chanhassen that has an 8 screen theater to go to a 16 one 10 miles away? I mean what do 3O Economic Development Authority - January 28, 1999 they say is the draw? Is it because everybody in my family can go to a different, you know go to a different movie in the same building? Bob Copeland: That's one of the things. But even with 8 screens here in Chanhassen, we can't play all the movies. We can't get them all. You know there are you know a handful of movies that we don't have right now because we only have 8 screens so we can't show all the movies. So there might be some movies that you want to see that we don't have. Mancino: You mean I have to wait a week to see before you get the new ones? Bob Copeland: Well no, but we won't be getting them. Mancino: Oh! You won't be getting them at all? Bob Copeland: Right. For example if you want to see Waking Ned Devine. I mean you have to go down to some other place to sec that. And if you want to see Life is Beautiful. Mancino: I have to go to the Lagoon. Bob Copeland: Or some other place. But the big reason though is that the larger, newer cinemas with stadium seating and in some cases bigger screens which we would intend to have here is have one big auditorium with a very large screen, they are drawing people. People are driving by the smaller ones and they're going to those. Mancino: Yeah, no. I can understand that... Bob Copeland: And it's not everybody's taste. Some people say well that wouldn't be for me. I wouldn't do that but people are doing that. Jansen: The theaters that are open now, and you have to forgive me. I'm not a big movie goer, but don't I recall seeing, don't you have the stadium seating in the existing cinema? Bob Copeland: In 4 of the 8 auditoriums we have stadium seating, yes. Jansen: Okay. And are they the oversized screens or the big screens? Bob Copeland: Well I would say no. They're just average size screens. Jansen: Okay. Thank you. Boyle: You ready Mark? Excuse me Bob. Does anybody else have any questions for Bob while he's at the podium. Questions of Bob? Okay. I had one but I forgot what it was. Engel: I don't have questions. Just a few comments but I'm going to wait until, are you ready to go Mark? 31 Economic Development Authority - January 28, 1999 Senn: No. Engel: No? Boyle: Go ahead. Engel: Well, I just watched this for a number of years before I got on council or EDA and to me the gain from the commercial viability of just our core downtown, in and of itself, is probably enough reason for me to approve it. Just that. And I think it's very pretentious on our part to sit here and think that under market conditions that property is going to redevelop, given it's demonstrated staying power to not do so. And it's certainly been uglier than the amount of years I've just been here but I've about had it with that place myself. So I don't believe there's any market condition that says that's going to change. If that's the case, I believe it would have happened by now and I don't see anybody else stepping up to the plate and I know it may not be perfect but it's not our property. We've got to deal with what we get and it's better than anything we've gotten so far. I think if we get this, we get closer to that office building, tower, center, complex, whatever you want to call it behind the Dinner Theater. Again it's that incrementalism. We're sneaking up on it. But we're not going to get it with this there, in my opinion. You wouldn't get me to build an office building there with that thing around. And it's all better than the existing use. It just is. That's not even debatable. It's not cash out of pocket. We're not being asked for a loan. It's incremental tax dollars. It's a win for us. It may not be a win for everybody but it is a win for the city so I'm going to approve it. Boyle: Thank you. Right to the point. Appreciate that. Jansen: Can I ask yet another question? It actually came up from something Mark said. I'm recalling, and I spent two days going through the history on this project and Mr. Gerhardt was wonderful. This is my second presentation of the numbers so he made sure I understood them perfectly clear. But one of the things I recall reading was, at least one other approach to the project that seemed to stall and then fail because of the existing financial situation of the bowling alley owners. Wasn't there a whole complicated process where the purchase just couldn't be made and the project stalled and stopped because of that? Or we would have something there now? Gerhardt: One of the deals was that Pauly would be included in on it. Dan Dahlen would be included in it and Dan would rent back basically from himself the bowling element and it wasn't a marketable deal. You couldn't take it to a bank and it failed. Jansen: So it was more the financial situation of the property that stopped the deal or we'd have something there now? Gerhardt: ... Jansen: Okay. 32 Economic Development Authority - January 28, 1999 Gerhardt: Bowling is difficult, it's difficult to get a bowling alley to survive and pay over $2.00 a square foot in taxes. $3.00 a square foot in taxes. And for them to survive there. And the amount of space that you need for a bowling alley. There's 24 lanes and then the space in- between. You just have way too much square footage to really afford to pay $15.00-$12.00 a square foot in a lease and still make money. Jansen: So is the first project that's come before the EDA or the HRA as far as demolishing the building completely and putting up a new business? Okay. So it's really the first time it's been looked at that way. Okay. And then the other part that of course I keep reading and we keep mentioning is the eye sore of the existing building and taking a good look at it and your pictures show it beautifully with the paint peeling offofthe facade. I brought the question up and it was with staff as to whether or not there is an ordinance that, in place that actually addresses those things because if we're actually coming at it and saying you know this thing is an eye sore. detracting from being able to bring businesses into the downtown. If we weren't replacing it... (There was a tape change at this point in the discussion.) Ashworth: ...passes that referendum, these businesses will be taxed for that. And the money will go directly to the school district. Or it would go directly to us. Boyle: Well does the 25% remain? I mean the 25% is there year after year after year, right? That goes right back to the city, is this correct? Where does the 25% come? Ashworth: I think that Todd had mentioned, the 10% can be used for any type of purpose whatsoever. The 15% has to kind of stay within that boundary area that is totally up to us. In other words it doesn't have to benefit these particular owners. Boyle: Okay. As long as that district is, okay I understand. Mancino: So I think what Councilman Senn is saying that the 15% has to stay within the district. If it were regular property taxes, it would not have to stay in that district. It could be used over all in the city anywhere and so that it wouldn't have to just stay in the district. We could use it anywhere you have a little bigger universe to decide whereas this has to stay just right there. Is that what you're, part of your point? Senn: Only 10% of the revenues coming off this project can go outside of this very small district area. 10%. Okay. So what I was saying was not relating to capital referendums or whatever. What I was saying was normal ongoing city operating needs as the city grows, whatever. As our infrastructure ages, as it requires more maintenance and everything else as we have more needs developed because of our population growth, okay we have increased services. We have increased operating costs. Okay our percentage of the overall tax rate will probably increase. As it increases, okay you will not recover any increase off these properties. So they will not be paying their fair share towards any of those future increases in relationship to stress or 33 Economic Development Authority - January 28, 1999 infrastructure maintenance and...whatever within the city so when the area is not doing that, or bigger properties end up doing that, that means the other properties pay more. Gerhardt: ... Mancino: The original base value. The blue numbers. Gerhardt: ...that will continue to... Mancino: And if there is a school referendum that does go to the school district, but there is no money, no green money that goes to the county. So the people who really lose out as it were I guess, from the tax increment districts, and actually in the latest newsletter from the county, the people that actually lose out or the agency that actually loses out is the county. And then they come back to us as the city and say, we lost all this money. How will you make it up to us? I mean using numbers...other side of that. Senn: Well it's more complicated than that. Much more complicated. The county's not the only negative you know. Mancino: But I mean then we enter into agreements on county roads, etc. Again, just everything. Boyle: Mark, you still have the floor if you would like. Senn: No, I'm done. Boyle: Linda. Jansen: I guess tagging onto what Councilman Senn said when he's saying the right project. And again not thinking of the cinemas as being the wrong type of a business or project, but when I look at that property and realize that for the 14 year period and the 22 year period that it won't be on the tax rolls. That yes, we'd like to get it on as soon as possible. In 14 or 22 years, is there a possibility that there will be a business or a developer that would come in and not need the TIF to develop the property? Might there be an opportunity for there to be a development that could go in and that could immediately get onto the tax rolls? Maybe I'm reacting a little bit more in that direction having just come through the whole election and the campaign process and 'hearing over and over again, you know taxes, taxes, taxes and wanting to bring that number down on the property owners. TIF definitely is one of those issues that you end up having discussions on and watching where the EDA is taking the funding and going more towards the affordable housing to get workers into town. It's not that we're needing, we don't have enough workers. It's not that we're now needing to attract businesses. Though I'm not saying you know no to commercial. I'm saying if we're at a point in the development of Chanhassen that businesses are coming into the community, and especially into our downtown area because of the way it's developed with you know all the hard work that all of you have gone to, we've got this property. We're limited in the amount of property that is available for development now in the downtown. Do we want, 34 Economic Development Authority - January 28, 1999 should we be taking public money to help in the expansion of the business when what the community and the vision has been for this property is multi-use. And again I realize that we don't dictate what businesses go in there. That that's not what we're here for but it's what are we going to take the public dollars and use them towards. So as I read through all of the TIF information and policy information, this being a redevelopment district, we're looking at an expansion of an existing business which is exciting for the community. Is that the right place for public dollars and TIF dollars. It's not within that realm of redevelopment. We're looking at an ugly building that's sitting here. If we step up to the plate and do something with that versus feeling that we have to commit to a 14 and a 22 year commitment of the one chunk being the $665,000.00, and the $1.4 million, that's an extravagant investment of public money into an area, but that's not what the public has had the vision for it. We're straying from that. We're spending their money on something that wasn't envisioned for. Just some of the questions that came up as I was comparing TIF policies, this area, the vision of Chanhassen. Maybe I'm less impatient because I haven't been sitting up here seeing this property. I wasn't involved in the first one and looking at the downtown area, I'm looking at all the things that this community needs, wants, should have that TIF could go to because they're not here, and we're looking at should we be making the business decision to finance the expansion of a business? That's not what we're here for either. We're not to be making those types of entrepreneur type decisions. But again, just a few of the things that I hit as I was going through that. They seem in conflict. You know definitely wanting businesses in town to succeed. But that's a business purpose. That's private, not public. Boyle: Some good points. Thank you. Mancino: Well I kind of want to build on that and I'm not really...just because I think I feel like a lot of the other members on the commission and that is that, I really do believe in redevelopment and ! believe in the very first point that we have in the new TIF policy which is compatibility of the proposed project with the city's overall development plans and objectives. And there's no question that this area has been a focus for the Highway 5 and for the city council. As we on the planning commission saw this project in '94, so it has been a focus for redevelopment and committing dollars for the project. So I am not philosophically opposed to using TIF for some particular spot redevelopment. At all. Although I want to caution us from what something that Councilmember Jansen just said. And I kind of smiled because I hadn't thought about it and that is in this area, and this is a major redevelopment area that Clayton has talked about and that we can see is, and if you don't mind I'm going to get up .... to make sure that we understand that as we...that hopefully the rest of this will be developed too. Soon. And it is...are we ready to be committed to take the same thinking and philosophy over to this area too. Boyle: Do we dare not do that? Mancino: So you know I just want to put that on the table that that is something that you know hopefully in the next few years that we'll be looking at too and philosophically where do we come down as an EDA as far as using TIF. 35 Economic Development Authority - January 28, 1999 Boyle: In other words you feel maybe we're setting a precedent on this one? For let's assume an office building does come, and they come in and they want TIF. Well you gave TIF here. You give here. Hey, each issue is new. I don't believe this sets a precedent. I think the past comes more to this. Senn: ... from what she said, you have to listen to what she said. On a pure premise, philosophically is redevelopment, okay. If that's the premise that you're deciding this on, then you are philosophically saying that you're going to continue this... Boyle: I don't agree. Senn: ...for redevelopment purposes... Engel: A person can change their mind. Mancino: That's what I'm asking because. Boyle: Philosophically you're saying. Mancino: Yeah, philosophically and again I'm not trying to, if this is an eye sore, you know these two buildings are eye sores because now we've got, we've got everybody down here. We're using this road, etc. I just want to make sure that we thought about it and we all feel comfortable with it because again the same argument for the eye sore could be down here. Engel: I think that goes without saying. Boyle: Can I just make a comment there? Let's just assume that this doesn't go in and another use comes in and they request some assistance. Do we say oops. I'm sorry. We're going to wait another two years because you can't afford it. We're going to hold tight. We're going to hold tight because we're not going to give TIF assistance any more for commercial development. And we don't care what kind of business you got in here, we're not going to give it. Is that a fair philosophical assumption? Senn: Well there is a philosophical assumption that says development will occur regardless of what you throw at it, yes. But it's a matter of time. I mean Byerly's wanted to be in Chanhassen regardless of whether we subsidized it or not. They got kicked out of several other sites. It was the only one left, okay. So you're kind of kidding yourselves if you think it wouldn't be, okay. But I mean essentially you have to ask yourself the question what's the premise you're doing it on and how big, or how deep are you digging your hole? If you go with a project like this on a pure premise of effectively redevelopment, which is the only premise that appears to me you can go on. Then you go down the way and you say but we're going to look at this one differently. I don't know how you're going to do that because (a), it's going to be redevelopment and in all probability it's going to be something other than something that's going to produce nothing more than a bunch of minimum wage jobs. Which this project's only doing. There won't be a single job in that place that's not minimum wage probably. 36 Economic Development Authority - January 28, 1999 Mancino: Well I just want to make sure we don't go from one extreme to the other. Say no redevelopment that we're using TIF or all redevelopment that we're using TIF. Engel: I want every project on it's own. Mancino: And every project on it's own and talk about that for a few minutes because I don't want us to get into again going to the extremes on either. I mean I think that's a good conversation to have .... those things that it must bring the city that we feel TIF should be used for. And again, because this is going to come up again, whether it's just, you know we're talking about extremes right now so I'd like to talk about some of those gray areas and why even this one in particular is important. Engel: And I just wanted, this body by it's very nature is fluid. It is going to change so whatever long term policy we would put in place is really going to be subjected to the thinking of the people sitting in these chairs the next time one comes up. So by default they almost live in a case by case basis. So philosophically I love that. I think the long term vision, something for the city. That's great. But the fact is everybody that moves into these seats is going to look at what they've got and they're going to decide based on the way they feel about it right now. Regardless of what the policy is. Jansen: Making comment to that, as one of the new kids sitting up here. Prior to this meeting the reason that I went back on all of the history and went back to the Vision 2002 was to make sure that I don't want to implement a major change. That's not why I'm here. I'm here because there's a vision and there's a course that's being gone down and I need to make sure that I'm on board with that and one of the things that as an EDA that you've done recently is you've changed your focus and so I'm getting on board with a new focus and now this project's coming along and tome it's out of sync with where your new focus is. I'm trying to get myself onto the new course and you've got a transition going on here. Because I'm looking at these 2, 3 year projects. The hotel expansion and the Timber Lounge and those to me are a better comparison to this project. So I look at the 3 years and the amount of money that ~vent into those compared to 14 years and 22 years and it's wow. Engel: See and I look at it, and I don't want to use the word utopian because that denigrates it but it's the only word I can think of for now so I'm going to leave it there but it's not that bad when I use that word. I mean I look at it from a reality perspective. Is it better or is it worse? And regardless of what we think, we might wait another year. We might wait two years. The next one doesn't quite do it for us. Maybe it's three years. How many years has it been there? 20? 25? I don't know. And I've watched these guys come up here over the last couple years, I don't see anybody nipping at their heels to grab this parcel of land out from underneath their feet and snap it up and do a better deal. I'm kind of waiting to see the next drawing. I haven't seen one yet. It tends to tell me that there's some reality as to what that thing can viably support and what people are willing to put into it. If somebody had another deal on the table and was coming right on the door behind him, I'd be willing to look at it. I've been waiting two years, I haven't 37 Economic Development Authority - January 28, 1999 seen it. They don't own exclusive rights to redevelop in Chanhassen and I don't see anybody stepping up with another offer. Senn: Mark they haven't been able to develop in two years because of bankruptcy... Engel: You know what, that's all part of the deal Mark. That's what I was saying. Senn: That's not part of the market. When you're asking $2 million from each property trying to bring it down and then... Boyle: Vernelle, you have some comments. Would you like to? Vernelle Clayton: ...the bankruptcy that has kept this from being sold. Lots of reasons, mostly economic and. Senn: Vernelle, okay. If you want to get up then let's debate it because when a thing's tied up in bankruptcy, when there's judgments against it, when the security position for closing on it, you can't sell a piece of property. If you can tell me any differently there as a professional real estate person I'd like you to put that on the record...how much you know about the real estate profession. Vernelle Clayton: I'll put it on the record. I'll speak slowly enough so that what you say can be on the record too. But I'll be happy to put it on the record. This property has not been in bankruptcy that long. We spent a lot of time before it went into bankruptcy trying to get it sold. We had problems getting enough money generated on an income stream on the...to get any kind of a loan. That was a problem. Senn: ...security interest. They were in default on. That was the problem. Vernelle Clayton: That's not true. He had the money. Senn: We were the one who had the security interest. The City. They were in default. Vemelle Clayton: We can go back and go through all the agreements that we had and what you're saying isn't true. Plain and simple. Gerhardt: Mr. Chairman I'd just like to add one other point. I'm not trying to skew anything here but you know there is, could be other potential users that you might not want there other than movies. There are other permitted uses in the area that might go in there that are less attractive than a movie theater. So that is also a gamble. I just want you to make sure that you understand that. It could be a lawn and sports shop. It could be a big tobacco store. You know other things like that. Just so you understand that you're weighing what you see here against something in the future which might be something that you don't like. Okay. Or worse than what this is, okay. You know just don't think the next project Will be better than this. You've got to keep that in the back of your mind. 38 Economic Development Authority - January 28, 1999 Engel: Todd, and I'm going to answer that. I mean you're going down a path there that I think is in response to sort ora premise that's being said here that we're analyzing this use. That doesn't make it to my radar screen. This debate about a movie theater and whether we need it or not and whether we should subsidize the expansion of an existing business. That doesn't make it to the radar screen in my opinion. It is a gigantic, it is a huge improvement over what we presently have. That's the bottom line, in my opinion. Again I guess I'm preaching a choir already. We know where we stand on this. It's a huge improvement over what we already have. I don't think we should be debating the uses because we're getting into that slippery, that's a slippery slope. What's next? We can't make that call. Boyle: Yeah, excuse me Jim. Bohn: We created this new district with the idea of redeveloping it and that's what we were going to do. Redevelop it. Regardless if it's a movie theater or another bowling alley or what it was, but we were going to rebuild. That's why we created this new district and that's what we should be doing is redeveloping. Saying that we're just adding onto the movie theater. Redeveloping the bowling alley that's going down the tubes. We are redeveloping and that's what our job is as a HRA or EDA, is to redevelop that area. And taking it from a bowling alley, an addition to a movie theater, that's what we're supposed to be doing. Boyle: I guess I would like to take, excuse me Nancy just a minute, take that just a little bit further because at the time, the purpose was designated and at one point in time there were other people sitting here that says yeah, we think that a restaurant and a bar and a bowling alley combined is ideal and we're willing to help in the financing of that. Now the fact that that's not part of the mix, you have now a movie theater with 10,000 square feet of retail space, which I think is a big plus by the way that hasn't been mentioned before and I think it adds to it. It doesn't change the scenario from where we were four years ago, or five. Mancino: Well Jim just answered one of the points that I was trying to make when I was standing up there and that is, if we as an EDA, I mean to again be proactive and decide philosophically that we want to go in and redevelop a place, let's be, and I'm talking about it for Don and Todd, let's be very proactive and say here is the area we want to redevelop it like has been done here. We haven't moved on into the next area. Gerhardt: At the next meeting I will bring. Mancino: Okay. Let's be proactive and say where it is we want to redevelop it and then counter to Councilman Engel, because I'm probably 360, I'm the opposite end of Councilman Engel. I do think that use is important. We spent lots of time talking about use and what kind of use we want in our downtown and what kind of services and the mix of uses, etc. It is extremely important to me along with the redevelopment and focusing in on that. So as an EDA we should make sure that we are proactive if there is an area that we want to focus in and say with some TIF dollars we will go into partnership and be again very proactive about that and spend some time doing that and say you know why is it important to us. Don? 39 Economic Development Authority - January 28, 1999 Ashworth: In going along, I totally agree with you. And I also agree with Councilman Senn in that some of these things could have happened privately because I was part of the negotiations on Byerly's, the Chanhassen State Bank, Festival Foods. I can guarantee you if they would have come in, in each and every case, they wanted to be out on the highway. They had already, not purchase agreements but what are the initial agreements you enter into. It was because of our efforts to say we want you in downtown that we brought Byerly's downtown. Because of our efforts we could put Chanhassen State Bank who also had an option on property out there. Similar with Festival Foods. So I agree with you, we could take and ensure that this property gets developed in the way that we want it developed. Mancino: Then, may I ask more? Did you want to go on? Boyle: No, but what helps us assure that that happens the way we want it to happen, and that's utilizing TIF, is that correct? Excuse me, now you can. Mancino: Let's figure it up front. One of the very important reasons that I think we use TIF in a redevelopment is for the quality of the facility to be built, etc, and I have concerns about that I want to make sure that if we do go ahead with this, that the planning commission and some conceptual concerns that I have with one, quality of materials. I have some very big concerns about when the movie theater stops there, that there is, in the original on the east side of the movie theater' there were supposed to be two retail. That was original, original of '94. So again it brought energy around that comer and again would focus it in going up the alley way into the hotel and Timber Lounge. It would be, bring energy around the Bloomberg retail. So I'm very, very concerned with that comer and I think a big lesson that we've probably all learned is doing these things in phases and not knowing what's going to go on next. Because I think that the boardwalk just stopping now from what I can see is a concern again in materials and then how we deal with that whole eastern part is a very big concern for me. And it to me doesn't have the quality. I don't see it meeting that quality test whiCh again if it goes through I would like to see come back to the EDA to make sure that it does do that. After going through planning. I don't think we need to sit here and do that at all but after going through planning. Boyle: Do you feel Nancy then that there is more control if there is TIF involved than if there is not TIF involved? Mancino: Well you know. Boyle: Control meaning we have more control of the quality and the appearance, etc. Mancino: Well we can decide to have that or not to some degree. This is in the Highway 5 corridor so there is a lot of control because it is in the Highway 5 corridor already. I mean architectural materials, etc. So as far as I look at it is the use of TIF goes even over and above the Highway 5. But then again I don't think it's fair for an applicant to then go to planning and say, don't worry about TIF. They do need to know that we are involved with the project and that we do expect and we have it right down here, that it has to meet our high quality. 4O Economic Development Authority - January 28, 1999 Boyle: Could we assume that the quality of the materials and the appearance might not be as good if it does not have TIF? Mancino: Well you know, I don't know. Obviously, and I said to Bob...you know he did not want to use EFIS because he didn't think that the material would hold up and then we did the precast and now we're back to EFIS and so I'm kind of, you know we went back and forth on that. So I'm concerned about quality of materials, etc and that's something that I want the planning commission to look at. Jansen: And Mayor and Chairman, I did ask that question of staff as one of my concerns, realizing that there was a vision for the entire project and they did go and they referred to the Highway 5 corridor study and in getting back to me said, that because of the parameters within that study they felt confident that however this project comes to them, they will be able to guide it because there does need to be the consistency. And that in fact it would give the, if they went with the Highway 5 corridor ordinances, it would give more green space to that area so it changes it some. It actually in some of the ordinances it's a titch stricter than we're actually applying with the current facade, parking and boardwalk parameters. That was staff's feedback to me. Mancino: Well I would like to make sure that it at least, you know it fulfills the Highway 5 corridor and then builds upon that. And I think that that's how we, and I think a lot of us saw and still feel that the Richfield Bank that Bob was involved in and the new, the Byerly's complex, and the Chanhassen Bank are just... (There was a tape change at this point in the discussion.) Mancino: ...I mean I think that that's a key component of it. I kind of feel like we have, we're pretty sure about parking but we'll want to make sure that that happens too. Engel: My understanding was that they were prepared to go to that route anyway but if you want tO. Senn: We probably should put it into it. Engel: That's fine. I don't think they have any problem with that. I'll add that. Boyle: How would that be worded again, I'm sorry. Why don't we. Gerhardt: The tape wasn't on so if you could just repeat it one more time. Engel: Again huh. Okay, I'm going to be briefer this time. Move approval of private redevelopment agreement for Phase II per staff's details with Chanhassen Cinema, modifying existing private redevelopment for Phase I and add that it's contingent on architectural approval by the EDA and road and access approval as well. Access from the east per Mayor Mancino's request. And the retail is included with the movie as one development, not phased. Period. 41 Economic Development Authority - January 28, 1999 Boyle: The motion has been redefined. May I have a second to the revised motion? Jim continues to second. Is there further discussion? Engel moved, Bohn seconded that the Economic Development Authority approve the Private Redevelopment Agreement for Phase II (Movie and Retail as one development, not phased) with Chanhassen Cinema, LLC and their request for $1,389,854 in city assistance and modify the existing Private Redevelopment For Phase I (existing movie) with Chanhassen Cinema, LLC and reducing the Limited Revenue Note to $1,066,319 contingent approval of the architecture and access from the east by the EDA. All voted in favor, except Senn and Jansen who opposed, and the motion carried with a vote of 5 to 2. APPROVAL OF BILLS: Boyle: That brings us up to the bills. Time to pay the bills. May I have a motion to approve the bills as listed? I don't have it. Labatt: I'll make a motion to approve the bills. Boyle: Before that, are there questions regarding the bills to staff?. Engel: None here. Boyle: Linda, Mark, do you have any questions on the bills that you'd like to address with staff at this time? Jansen: No. Boyle: Steve? Jim? Bohn: No. Labatt: No. Boyle: May I have a motion to approve the bills as presented. Labatt: I'll make a motion to approve the bills as presented. Mancino: Second. Labatt moved, Mancino seconded that the Economic Development Authority approve the bills as presented. All voted in favor and the motion carried. 42 PROPOSAL: NOTICE OF PUBLIC HEARING PLANNING COMMISSION MEETING WEDNESDAY, MAY 5, 1999 AT 7:00 P.M. CITY HALL COUNCIL CHAMBERS 690 CITY CENTER DRIVE APPLICANT: Chanhassen Properties, LLC Request Site Plan Review for Additional Theaters and Retail · Space LOCATION: Pauly Drive; east of Market Boulevard NOTICE: You are invited to attend a public hearing about a proposal in your area. The applicant, Chanhassen Properties, LLC., request for subdivision and site plan review to demolish the existing Chanhassen Bowl and Filly's Bar and replace it with eight additional theaters with a seating capacity of 1,400 seats, with an area of 30,000 sq. ft. and 9,000 sq. ft. of retail space, variances for signage, hard surface coverage and parking requirements on property zoned BG, General Business District, located north of the railroad tracks and Pauly Drive; east of Market Boulevard; and south of West 78th Street. What Happens at the Meeting: The purpose of this public hearing is to inform you about the developer's request and to obtain input from the neighborhood about this project. During the meeting, the Commission Chair will lead the public hearing through the following steps: 1. Staff will give an overview of the proposed project. 2. The Developer will present plans on the project. 3. Comments are received from the public. 4. Public hearing is closed and the Commission discusses project. The commission will then make a recommendation to the City Council. Questions and Comments: If you want to see the plans before the meeting, please stop by City Hall during office hours, 8:00 a.m. to 4:30 p.m., Monday through Friday. If you wish to talk to someone about this project, please contact Sharmin at 937-1900 ext. 120. If you choose to submit written comments, it is helpful to have one copy to the department in advance of the meeting. Staff will provide copies to the Commission. Notice of this public hearing has been published in the Chanhassen Villager on April 22, 1999. W 78th 0 ~z cn ~ z 0 IJJ ' - O~ w~ ~u~-w mWO w~w 0 0 ZO) Z ~ z 0 ~ 0 w T ~rn z W Z ~ 0 ~ ~° ~0 CC~ ~ z 0