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EDA 2004 08 23 CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY SPECIAL MEETING AUGUST 23, 2004 Chairman Furlong called the meeting to order at 8:50 p.m. MEMBERS PRESENT: Tom Furlong, Craig Peterson, Bob Ayotte, and Brian Lundquist STAFF PRESENT: Todd Gerhardt, Justin Miller, Kate Aanenson, Roger Knutson and Bruce Dejong PUBLIC PRESENT: Deb Lloyd Janet Paulsen Fred & Valaire Riese Brandy Geiger, Goddard Systems John Bertelsen, John Olivers & Associates 7302 Laredo Drive 7305 Laredo Drive 9154 Sunnyvale Drive King of Prussia, P A 20 1 West Travelers Trail, Burnsville CONSIDER PURCHASE AGREEMENT FOR OLD VILLAGE HALL ADDITION. Miller: Thank you Mr. Chair, EDA members. Back in April staff brought to you a proposal for development on what we used to call the Pony/Pauly/Pryzmus site. We're going to call it Old Village Hall Addition from now on. That proposal encompassed or included an 8,000 square foot daycare which is being proposed by the Goddard School. The Goddard School is a daycare system predominantly out east, but they are trying to enter this market and there was also a proposal for a Dunn Brothers coffee shop on the southern part of this site. At that EDA meeting staff received direction to continue negotiations with the developers and see what could be done. Since that time we've met extensively with the developer. Both the developer and the franchisee for Goddard School. For a lot of different reasons it was decided that only the school would really work on this site. At that point we began negotiating exclusively with the franchisee, Mr. and Mrs. Riese, Chanhassen residents. The proposal we bring back before you tonight is a purchase agreement to buy the entire 1.25 acres of the Old Village Hall Addition. If you can see here, this would be Great Plains Boulevard, 78th Street. This is old village hall and here would be old St. Hubert's. The Remax building would be right here. The purchase agreement is for $11 per square foot. That works out to $598,950. That would be for an 8,000 square foot daycare center. The site, if you do approve this site plan, or this purchase agreement tonight, site plan review would begin this fall. Parking easements are going to be an issue with this project, one so that the owners of old village hall, which is us but more specifically the tenants of old village hall which is the Chamber of Commerce, would have adequate parking. In the current purchase agreement they have 8 stalls. That really is just a place holder until we can determine exactly the Economic Development Authority - August 23,2004 amount of spaces they need. As well as parking for the current tenants of old St. Hubert's church. Currently they do not have specific rights over that parking area. We allow them to park there anyway. We do bill them for some plowing that we incur during the winter months. As we also charge the Remax building and old village hall. Those parking easements will be addressed more fully during the site plan review process and most likely will have to come back as an amendment to the purchase agreement but they will be addressed. There's also a right of reversion on this purchase agreement. Ifwe sell the site and nothing is done within one year, under state statutes we do have the right to purchase that property back at the same price that we sold it for. Staff has had discussions with the adjacent users. I spoke briefly with the superintendent of Chapel Hill Academy. He did not have any immediate concerns. I did put him in touch with Mr. Riese. I don't know if they had a chance to talk or not but he can probably address that. Old village hall, the Chamber of Commerce is open to it. Their main concern is just that they still retain the parking that they need, and we're working on that. And I've had kind of phone tag with the current tenants of old St. Hubert. They've had a kids festival last week. They were kind of focused on that but we are in talks with them. Staff believes this is a good use of the property. It compliments the Chapel Hill across the street. It's a two tripper in that it makes people come into town twice. The parking works out with the existing uses. The church really uses it on Sundays where the daycare won't be there so we believe that's a complimentary use with that. Staff is recommending that the purchase agreement, that you do approve the purchase agreement as presented and also say that the sale of this land doesn't have an impact on the city's comprehensive plan. Be willing to answer any questions and representative, Mr. and Mrs. Riese are here as well as representatives from the Goddard School. Furlong: Thank you. Any questions for staff? No? Very good, thank you. Mr. and Mrs. Riese. Fred Riese: Mayor and City Council members. I appreciate you giving us this opportunity to possibly bring Goddard School to the city of Chanhassen. My wife and I, Valaire Riese would be the franchisees and the developers of the school on the site. John Bertelsen would be the project manager and civil engineer for John Olivers and Associates. Brandy Geiger is the manager of site development for Goddard Systems and she, with a very large team of professionals at Goddard will be helping us with this process. At this time I would like to open the floor to any of your questions that you would have and we will answer them. So feel free. Furlong: Thank you. Questions. Lundquist: Mr. Riese, timeframe that you're looking for to have ground breaking and first day of school so to speak. Fred Riese: We're hoping for ground breaking by the end of October, early November. So that we can beat the weather and get the foundation down. And then proceed with the rest of the construction during the winter season. Opening, we're hoping and anticipating somewhere around late spring, early summer. June probably. 2 Economic Development Authority - August 23,2004 Lundquist: Calendar '05. Fred Riese: Right, calendar '05. Yes, absolutely. Lundquist: Is that timeframe realistic with us and. Aanenson: Justin and I sat down with the Riese's about a week and put together a time line for Planning Commission, City Council. There's some fall back positions. They're on a fast track so we think that can happen. Lundquist: Okay. Furlong: I guess to follow-up with those meetings and I know one of the issues that we talked about back in April was the architecture. I think Mr. Peterson brought that up and I guess from that question, maybe it's, one I'm having trouble, I'm kind of envisioning where the big dormers are on the top one but that's probably my fault. I guess one of the questions I have here before we get into that specific is have we looked at what they propose at this point with any detail in terms of numbers of windows? Aanenson: No we haven't. Actually Sharmeen Al-Jaff on the planning staff would be the person working with it and downtown is really her bailiwick so she's giving the applicant some indication of the cupola. Mimicking some of the things that are down there. No, we haven't really spent a lot of time in the architecture. Just to give you an idea of what the school, the one thing we did talk about it was orientation of the building and they're clear that we wanted the street presence. While that gets back to them. West 78th is the front entrance so we're just getting some kind of broad brush things to look at but we didn't want to spend too much time in that and kind of usurp the planning process. Let them, so. Furlong: Sure. Aanenson: It may look different. Furlong: Okay. Aanenson: ... roof lines. Furlong: That's fine. You know let's go through the process. I know you do a good job of providing direction. Obviously the Planning Commission has some very good input in the process as well so you're working with some good people so I'm comfortable there but I know that that was one of the issues if I recall correctly that came up back in April as we move forward that was going to be concerned, just because of it' s prominence in downtown and near some of our more historic buildings. 3 Economic Development Authority - August 23,2004 Fred Riese: Right, and we're going to be doing a workshop before the Planning Commission meeting. Bringing the Goddard people in. The architect, the civil engineers. Sitting down with the city planners and hashing everything out prior to the Planning Commission meeting so that the plans that come to that meeting are going to be pretty well finalized so try to hash everything you know out prior to it. Furlong: And just the recommendation I'll make based on my experience is we've seen developers come in and some of them listen and some of don't. Think that they know better. The ones that listen, it tends to go much faster so if you're on a fast track, I encourage you to listen and bring together suggestions too. Staff has some good ideas but I know too that you may have some good ideas on a way to accomplish some of the goals as well so. The fact that you're planning to work together I think is very positive. Very positive and it will help you meet your time table as best as possible. Fred Riese: Yep, and that's my intentions. Furlong: Okay great. Great. Any other questions for the applicant or staff? Okay. Very good, thank you. Fred Riese: Thank you. Furlong: Comments, thoughts, discussion. Peterson: No, I think you summarized it well. Purchase agreement sounds, seems solid and if they want to fast track I think we set the tone before and reinforced it tonight so let's get her done. Furlong: Okay. You reviewed the agreement I assume Mr. Knutson. Knutson: Our firm drafted it. Furlong: I'm sorry. Knutson: Our firm drafted it. Furlong: Okay, thank you. Peterson: So that's a yes. Knutson: So I think it's excellent. Furlong: Boy, I set him up there. Knock that ball out. Very good, is there any other issues or discussion? If not, is there a motion to approve. Peterson: So moved. 4 Economic Development Authority - August 23,2004 Lundquist: Second. Furlong: Been made and seconded. Any discussion? Peterson moved, Lundquist seconded that the Chanhassen Economic Development Authority approve the attached purchase agreement with Fred and Valaire Riese for Lot 1, Block 1, Old Village Hall and confirm that the sale of the land is in accordance with the City of Chanhassen Comprehensive Plan. All voted in favor and the motion carried unanimously with a vote of 4 to O. REFUNDING OF BONDS FOR CENTENNIAL HILLS PROJECT. Furlong: I assume from the staff report standpoint this is an EDA's approval of the council action from last meeting? DeJong: Yes. Furlong: Is there any questions for staff? Staff is prepared to respond to questions, unless there's something specific that needs to be said or new that we haven't heard about. DeJong: No. Furlong: Okay. Lundquist: Motion to approve. Ayotte: Second. Resolution #2004-01: Lundquist moved, Ayotte seconded that the Chanhassen Economic Development Authority approve the resolution regarding modification of the Centennial Hills Apartment Joint Powers Agreement. All voted in favor and the motion carried unanimously with a vote of 4 to O. APPROVAL OF MINUTES: Peterson moved, Lundquist seconded to approve the Minutes of the Chanhassen Economic Development Authority meeting dated July 12, 2004 as presented. All voted in favor and the motion carried unanimously with a vote of 4 to O. Lundquist moved, Furlong seconded to adjourn the meeting. All voted in favor and the motion carried. The Economic Development Authority Meeting was adjourned. Submitted by Todd Gerhardt Executive Director Prepared by Nann Opheim 5