HRA 1984 10 16AGENDA
SPECIAL JOINT MEETING
CHANHASSEN CITY COUNCIL AN HRA
TUESDAY, OCTOBER 16, 198
Chanhassen City Hall, 690 Coulter Drive
City Council Chambers
7:30 p.m.
1. Call to Order.
7:30 p.m. 2. Status Report on Lake Ann Interceptor negotiations:
Dick Nowlin.
8:00 P.M. 3. Review of West 79th Street /Railroad Crossing
Traffic Study.
4. Review Proposed 1985 HRA Operating Budget, and
discuss future of the HRA.
5. Discuss promotional plan for Downtown
Redevelopment Project.
6. Open Discussion.
7. Adjournment.
NOTE: The Joint Session begins at 8:00 p.m. The City
Council will meet separately between 7:30 - 8:00 p.m. to
discuss the first business item.
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
MEMORANDUM
TO: Mayor and City Council
FROM: Scott A. Martin, Community Development Director AAIIM
DATE: October 12, 1984
SUBJ: Status Report on Lake Ann Interceptor Negotiations with
the Metropolitan Council.
As you know, Dick Nowlin of Larkin, Hoffman, Daly & Lindgren,
Ltd. has been retained by the City to negotiate an agreement with
the Metropolitan Council concerning the Lake Ann Interceptor /Lake
Virginia Forcemain issue.
Mr. Nowlin has had several meetings with Met Council and City
Staff during the past month, and at this time, would like an
opportunity to update the City Council on these negotiations and
to obtain the sentiments of the Council concerning the Met
Council's compromise offer.
Mr. Nowlin will attend next Tuesday's special meeting, and has
asked that the first half hour (7:30 - 8:00 p.m.) be reserved for
his status report. As of this writing, Mr. Nowlin was uncertain
whether a written report would be available to you prior to the
meeting date.
3.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
1612) 937 -1900
I
MEMORANDUM
TO: Chanhassen HRA
Mayor and City Council
FROM: Scott A. Martin, Executive Director,
DATE: October 10, 1984
SUBJ: West 79th Street Traffic Study
On September 27, 1984 the BRA reviewed the preliminary results of
the West 79th Street Traffic Study which was prepared by BRW,
Inc. at the request of the HRA (see attached).
The purpose of this study was to determine the need for a new at-
grade railroad crossing between West 79th Street and the Downtown
Area in order to relieve traffic congestion at the intersection
of West 79th Street and Great Plains Boulevard (T.H. 101).
The study concludes that, even with full commercial development
along West 79th Street, traffic operations at the Great Plains
Boulevard and West 79th Street intersection will function at an
acceptable level of service if turning lanes are added and the
intersection is signalized. This finding makes it very difficult
to substantiate our case before a MnDOT hearing examiner for a
new railroad crossing based upon traffic congestion.
During the HRA's discussion of this study last month, neither the
Commissioners nor several local business people attending the
meeting were satisfied with the results of the study or the
methology used by the traffic engineer to arrive at his findings.
Consequently, the Board decided to table action on the study in
order to give the entire issue more thought.
In order to keep this issue alive, I would suggest that the BRA
and City Council discuss the Traffic Study during the next week's
meeting in hopes of coming to some conclusion as to what should
be done next. Possible options include authorization of an addi-
tional study by another qualified traffic engineer; directing BRW
to revise their study based upon more optimistic development
assumptions; moving ahead with the hearing before the state
hearing examiner in hopes that our case will prevail over that of
the railroad's; or, holding -off on our petition to the State
until more development occurs within the study area,
West 79th Street Traffic Study
Page 2
RECOMMENDATION
The proposed new at -grade railroad crossing is critical, in my
opinion, for the future orderly development of the West 79th
Street business district and the Downtown Area. I recommend
that we continue our pursuit of this issue until resolved to the
City's satisfaction, and towards that end recommend that another
traffic study be conducted by a qualified traffic engineering
firm, as soon as possible.
ATTACHMENTS
1. Copy of BRW Traffic Analysis Memorandum dated September 20,
1984.
2. HRA minutes dated May 17, 1984.
SENNETT RINGROSE. WOLSFELD. JARVIS. GARDNER, INC.
September 20, 1984
PLANNING
TRANSPORTATION
ENGINEERING
ARCHITECTURE
THRESHER SOLARE • 700 THIRD STREET SOUTH • MINNEAPOLIS. MN 55415 • PHONE 612137007M
TO: Mr. Scott A. Martin,
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317
FROM: Nancy Heuer, P.E.
David M. Warner, P.E.
MEMORANDUM
Community Development Director
�;tiY G!F
SUBJECT: West 79th Street Area Traffic Analysis
i9e4 p2i ppnn
-
V
The purpose of this study is to analyze the effect of future development on
traffic patterns in the West 79th Street and TH 101 area. The proposed link
between the Downtown Core Area and the commercial area along West 79th Street is
expected to affect traffic west of TH 101, therefore the area east of TH 101 has
not been included in this study.
DATA COLLECTION
Two -way traffic counts were recorded from July 24 to July 26, 1984, on both TF
101 and West 79th Street. P.M. peak hour turning movements were recorded
manually, at the intersection of TH 101 and West 79th Street on July 25, 1984.
Other information available included 1983 average daily traffic volumes from
Mn /DOT and land use data from the City of Chanhassen.
TRAFFIC PROJECTION
The area which contributes trips to West 79th Street is bounded on the south by
TH 5, on the east by TH 101 and on the north and west by the Milwaukee Railroad
tracks. Approximately 6.7 acres is currently developed with a mix of commercial
uses. Almost 14 acres remains for future development. The daily traffic volume
measured on West 79th Street was 5,800 vehicles per day. This is in line with
typical trip generation rates for the existing land uses. It was assumed that
future development would be similar to the existing development and would
generate traffic at the same average rate.
MINNEAPOLIS DENVER BRECKENRIDGE
PHOENIX
Mr. Scott A. Martin
September 20, 1984
Page 2
Application of the existing generation rate to the undeveloped Land resulted in
an additional 13,000 vehicles per day, for a total of 18,800 vehicles per day.
This represents the projected traffic volume on West 79th Street when the adja-
cent area is fully developed. It was assumed that full development would occur
in 20 years.
An annual growth rate of three percent was assumed for through traffic volume on
TH 101. A combination of the two growth patterns results in a projected year
2004 (20 year) average daily traffic volume of 11,700 vehicles per day on TH 101
near the West 79th Street intersection.
The measured peak hour turning movements at the intersection of TH 101 and West
79th Street are shown in Figure 1. The West 79th Street volumes were compared
to the existing daily volume and the resulting factors applied to the projected
daily volume, to distribute the projected peak hour volumes to the intersection
approaches. The through movements on TH 101 were again assumed to increase
three percent annually. The resulting projected volumes are shown in Figure 2.
CAPACITY ANALYSIS
The capacity of a street system is usually limited by the capacity of its inter-
sections. The intersection capacity at TH 101 and West 79th Street was analyzed
using the critical movement method, to determine the level of service which
would occur at the intersection under various conditions. The level of service
is used as a measure of the ability of the intersection to accommodate the traf-
fic flows. Level of service is rated from A to F, "A" representing little or no
delay to vehicles and "F" representing occassional, substantial delay during the
peak hour. Level of Service "D" represents average delay to vehicles and is
considered acceptable for peak period urban situations.
Capacity analysis conducted for the intersection under the existing volume and
geometric conditions, resulted in level of service "A" on TH 101 and "B" on West
79th Street. Analysis was then done for various other conditions, including
signalization and the addition of right -turn lanes to eastbound West 79th Street
and southbound TH 101, and a left -turn lane to northbound TH 101. The following
summary shows the progression from the existing Level of Service "B" to over
capacity operation, due to increased traffic volumes.
M
Mr. Scott A. Martin
September 20, 1984
Page 3
Level of Service Year Attained Assumed Condition
Development Geometry Signalization
B
Existing
Existing
Existing
No
C
1985
Partial
Added Turn
No
Lanes
D
1989
Partial
Added Turn
No
Lanes
E
1993
Partial
Added Turn
No
Lanes
Over Capacity
2000
Partial
Added Turn
No
Lanes
A
2004
Full
Added Turn
Yes
Lanes
Signal Warrants
Although a traffic signal would improve the level of service significantly, a
signal should not be installed unless the intersection meets warrants defined by
the Federal Highway Administration in the Manual of Uniform Traffic Control
Devices. These warrants have also been adopted by the Minnesota Department of
Transportation. At the projected traffic volumes, the intersection would meet
the minimum vehicular volume warrant in 1991.
Storage Requirements
Because the intersection of TH 101 with TH 5 is less than 300 feet from its
intersection with West 79th Street, it is critical to avoid interference between
the two intersections. The signal cycle was adjusted to give more green time to
TH 101, shortening the storage length required by vehicles waiting at the
signal. This would reduce the average number of vehicles waiting on both south-
bound and northbound TH 101. The resulting storage lengths are shown below.
TH 101: Northbound Left -Turn Lane - 95 feet
Southbound through lane - 85 feet
West 79th: Eastbound right turn lane - 340 feet
Under these conditions, it is unlikely that vehicles waiting on TH 101 would
interfere with operation of the intersection of TH 101 and TH 5 or the railroad
crossing. It is likely that driveways located within the 340 foot storage area
on West 79th Street would occassionally be restricted by waiting vehicles.
Mr. Scott A. Martin
September 20, 1984
Page 4
SUMMARY
The analysis shows a very high 20 year projected volume on West 79th Street, for
a two lane roadway. Because the street ends in a cul -de -sac, the volumes will
be lowest at the cul -de -sac and increase to the projected volume at the inter-
section with TH 101. Traffic volumes on TH 101, which are now approximately
equal to those on West 79th Street, are not expected to increase as quickly.
The projected volumes result in very high turning movements to and from West
79th Street and low level of service for the unsignalized intersection.
If development occurs as projected over a 20 -year period, the intersection at TH
101 and West 79th Street will operate at an acceptable level of service until
1993 if the recommended turn lanes are added, but the intersection is not signa-
lized. Capacity analysis of the intersection indicates a signal will be
required in the future. Although this signal can be installed without inter-
fering with the railroad crossing or the TH 5 and TH 101 intersection, the
interaction between the three locations will require very delicate signal
timing. It has not been determined whether the signal at TH 5 will interfere
with the West 79th Street and TH 101 intersection.
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MINUTES
Chanhassen Housing and Redevelopment Authority
Regular Meeting
May 17, 1984
vice- Chairman Horn called the meeting to order at 7:30 p.m.
Present were Commissioners Bohn, Horn, and Robbins.
Commissioners Swenson and Whitehill were absent. .Executive
Director Martin was also present.
Development Incentive Payment: Larry Zamor
This item was tabled by the Board on April 19, 1984 in order to
give Mr. Zamor an opportunity to obtain a conservation easement
from the owner of Lot 2, Zamor Addition (Prairie House Restaurant
site).
Mr. Zamor was present and explained that he was unsuccessful in
his attempt to acquire the easement. The owner of Lot 2 (Ted
Korzenowski) said that providing the easement would "entail
substantial time and effort on my part because of Small Business
Administration and bank financial restrictions." Therefore, Mr.
Korzenowski declined to grant the easement to the City.
Robbins moved, seconded by Horn, to authorize the Executive
Director to make a $7,500 Development Incentive Payment to
Lawrence Zamor for construction of the Prairie House Restaurant
on Lot 2, Zamor Addition, based upon the Board's previous alloca-
tion of funds for this purpose on November 15, 1979. All voted
in favor and the motion carried.
Downtown Redevelopment Project Status Report: _JLH Associates
Jack Henning of JLH Associates was present to advise the Board
that little progress had been made on their development proposal,
and consequently, they would not seek an extension to the site
control and exclusive negotiation rights for the old Instant Web
site, which is due to expire on May 25, 1984. He explained that
an inability to secure a major supermarket tenant and the uncer-
tainty about the future of Industrial Revenue Bonds made it
unlikely that a firm development proposal would be forthcoming
within the immediate future.
The Board thanked Mr. Henning for his efforts in trying to put
together a redevelopment proposal, and encouraged him to continue
to do so.
Proposed West 79th Street /Ringroad Railroad Crossinq
Martin reported that the Milwaukee Road has rejected the City's
request for a new at -grade railroad crossing between W. 79th
Street and the proposed Downtown Ringroad. He recommended
pursuing this proposal through the State Department of
Transportation Hearing process, but only if a traffic study could
Chanhassen HRA Minutes
May 17, 1984
Page 2
adequately support the City's
necessary to relieve traffic
Great Plains Boulevard.
position that a new crossing was
congestion at W. 79th Street and
Bohn - moved, seconded by Robbins, to authorize the Executive
Director to proceed with the necessary steps to have this
request formally considered by MnDOT, including the preparation
of a traffic study. All voted in favor and the motion carried.
Approval of Bills
Robbins moved, seconded by Bohn, to approve the bills for May,
1984 as presented. All voted in favor and the motion carried.
Adjournment
Bohn moved, seconded by Robbins, to adjourn the meeting at 9:00
P.M. All voted in favor and the motion carried.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
MEMORANDUM
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
16121937 -1900
TO: Chanhassen HRA
Mayor and City Council
FROM: Scott A. Martin, Executive Director 10
DATE: October 10, 1984
SUBJ: Proposed Revised 1985 HRA Operating Budget
Attached for your review and approval is the proposed revised
1985 HRA Operating Budget.
Consistent with the recently approved 1985 City Operating Budget,
this budget provides for the elimination of the HRA Executive
Director's position effective January 1, 1985.
The proposed personnel services budget includes partial HRA
funding of several City staff positions, as follows:
City Manager
12 §8
City Planner
40%
Planning Secretary
258
City Treasurer
108
Senior Account Clerk
10%
Therefore, elimination of the Executive Director's position
(previously 75% funded by the HRA), will yield an annual personnel
cost saving of $18,600.
Proposed 1985 expenditures for contractual services and capital
outlay are $910 less than estimated for 1984, while total debt
service increases by $9,320 to $543,650.
Overall, the proposed 1985 Budget calls for total expenditures of
$7,960 less than currently estimated for 1984, while total reve-
nue increases by $162,095 over 1984 projections to a total of
$826,000 in 1985.
Also attached is background information concerning the future of
the HRA, including the City Attorney's opinion on HRA /Council
separation of powers.
FUND: 460 H.R.A.
SPECIAL REVENUE FUNDS
1985 BUDGET - REVENUE
BUDGET
ESTIMATED
BUDGET
1984
1984
1985
REVENUE
GENERAL
PROPERTY TAX
460
3011
Delinquent Property Tax
17,000
10,000
460
3012
Tax Increrrent Receipts
611,000
590,000
790,000
460
3041
Harestead Credit
1,700
0
460
3099
TOTAL PROPERTY TAX
611,000
608,700
800,000
CHARGES
FOR CURRENT SERVICES
460
3601
Sale of Doouurent
0
5
0
460
3699
TOTAL CURRENT SERVICES
0
5
0
OTHER REVENUE
460
3801
Interest Earnings
0
0
460
3803
Building Rental
1,500
30,000
26,000
460
3805
Sale of Properties
16,600
0
460
3808
Ins., Recover. & Reimb.
8,600
0
460
3899
TOTAL OTHER REVENUE
1,500
55,200
26,000
460
3999
TOTAL REVENUE
612,500
663,905
826,000
TOTAL EXPENDITURES
690,091
681,240
673,280
REVENUE
OVER(UNDER)EXPENDITURES
- 77,591
- 17,335
152,720
Find Balance Forward
- 230,723
- 38,773
- 50,108
Total Resources over (under) Liabilities
- 308,314
- 50,108
102,612
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
460
FUND # 460 - HOUSILU AND REDEVELOPMENT AUTHDRLTY
�g SPECIAL REVENUE FUNDS
1985 BUDGET
PERSONAL SERVICES
4010
Salaries & Wages, Regular
4030
Contrib., Retirement
4040
Contrib., Insurance
4050
Workmen's Camp.
4099
'TOTAL PERSONAL SERVICES
MATERIALS & SUPPLIES
4110
Supplies, Office
4210
Books & Periodicals
4299
TOTAL MATERIALS & SUPPLIES
4300
Fees, Service
4310
Telephone
4320
Utilities
4375
Promotional Expenses
4340
Printing & Publishing
4360
Subscription & Memberships
4370
Travel & Training
4420
Adm. Fees (Overhead)
4480
Official Bonds
4481
Insurance, Building
4509
Remittance to Other Agencies
4510
Rep. & Maint. Bldg & Grnds
4751
Awarded Construction Contracts
4599 TOTAL CONTRACTUAL SERVICES
CAPITAL OUTLAY
4701 Land Purchase & Improvements
4799 TOTAL CAPITAL OUTLAY
BUDGET
1984
37,500
4,700
1,670
600
44,470
300
200
500
30,000
150
40,000
2,000
500
250
750
11,900
0
4,200
22,000
2,500
4,000
118,250
0
0
0
456,568
70,303
526,871
690,091
ESTIMATED BUDGET
1984 1985
36,900
4,390
1,620
300
43,210
300
200
500
15,000
0
42,000
200
500
250
750
11,900
700
3,000
12,400
5,000
4,000
22,490
2,530
1,520
300
26,840
300
200
500
30,000
0
40,000
2,000
500
250
750
13,090
700
3,500
9,000
2,500
0
95,700 102,290
7,500 0
7,500 0
477,680
DEBT
SERVICE
460
4801
Debt Principal
460
4802
Debt Interest
460
4804
S/A Payments
460
4899
TOTAL DEBT SERVICE
460
4999
TOTAL EXPENDITURES
BUDGET
1984
37,500
4,700
1,670
600
44,470
300
200
500
30,000
150
40,000
2,000
500
250
750
11,900
0
4,200
22,000
2,500
4,000
118,250
0
0
0
456,568
70,303
526,871
690,091
ESTIMATED BUDGET
1984 1985
36,900
4,390
1,620
300
43,210
300
200
500
15,000
0
42,000
200
500
250
750
11,900
700
3,000
12,400
5,000
4,000
22,490
2,530
1,520
300
26,840
300
200
500
30,000
0
40,000
2,000
500
250
750
13,090
700
3,500
9,000
2,500
0
95,700 102,290
7,500 0
7,500 0
477,680
480,450
56,650
63,200
534,330
543,650
681,240 673,280
Council Meeting September 10, 1984 Kwas -8-
ORDINANCE AMENDMENT, PUBLIC SAFETY COMMISSION ORDINANCE, FIRST READING: Councilman
Geving moved to place on first reading an ordinance establishing a Public Safety Liaison
Commission. Notion seconded by Councilman Horn. The following voted in favor: Mayor
Hamilton, Councilwoman Watson, Councilmen Horn and Geving. No negative votes. Notion
COUNCIL PRESENTATIONS:
HOUSING AND REDEVELOPMENT AUTHORITY DISCUSSION, MAYOR HAMILTON:
Mayor Hamilton relayed the following points asking that the City Manager prepare these
for presentation to the HRA and for response by the City Attorney:
The agendas of both the City Council and HRA have been relatively
light. Councilman Horn noted that the HRA has only met three times
this year with meetings often being rescheduled or cancelled.
Separate agendas, staffing, etc, are maintained for each group.
Most of the information presented to one group is, through courtesy,
presented to the other group. The question posed by the Council is
"does this make sense "? Should not the City Council consider acting
as the HRA until such time as workloads would necessitate separate
organizations. This is a policy issue that the Council /HRA will
have to resolve. In discussion the item, the Mayor noted that there
was no intention to attempt to remove any existing persons on the
HRA. In fact, if there was a strong conviction by members to
continue to serve, their desires should be highly considered.
On the other side of the coin, if they similarly see a duplication
of services, the issue should be further pursued. Herein lies
the question:
Can the Council act as the Housing and Redevelopment Authority?
How could the change be made?
What other legal procedures would be required to effectuate
this action?
CONTRACTOR'S YARDS LETTER AND SURVEY: Councilman Horn moved to direct the City Planter
to send letters and include the waiver of the $150.00 fee for 30 days from the date of
the letter. Notion seconded by Councilman Geving. The following voted in favor: Mayor
Hamilton, Councilwoman Watson, Councilmen Horn and Geving. No negative votes. Motion
carried.
SOLID WASTE INITIATIVES:
Bill Monk - The Council now has finished with their landfill siting process and I think
the new Chairperson of the Metropolitan Council has brought a major initiative or item
before that Council. They are having a lot of meetings on abatement and they seem to be
serious about this approach. I thought the Council may want to consider going after
this thing and writing a letter from the Council to the Chairperson saying that they
fully support this effort if that's the way the Council wishes to go. They are getting
serious about it and I really think this is more than just talk. They are going to make
some quick moves here in the next year or two.
Councilor.,, Horn - I think that's a good idea.
Mayor Hamilton - I think the waste reduction and source separation is really important
and should be started and that should actually started first.
Councilman Geving - You know what comes before that though, education. You have to con-
dition people to waste separation.
Mayor Hamilton - That has to.
c
t
I
11
&CER [ FROA DoW AsNweR lb
Mr. Roger Knutson 3, 198 y A�Qlrmc�/
September 13, 1984 �, ==74
letter Page'o2
letter of August 21, 1984. I am attaching copies of infor-
mation you requested. Please give me periodic progress
3 Item 11, Council Presentations, Housing and Redevelopment
e uthority, Mayor Hamilton: The agendas of both the City
Council and HRA have been relatively light. Councilman Horn
noted that the HRA has only met three times this year with
meetings often being rescheduled or cancelled. Separate
_agendas, staffing, etc. are maintained for each group. Most
of the information presented to one group is, through cour-
tesy, presented to the other group. The question posed by
the Council is "does this make sense "? Should not the City
ouncil consider acting as the HRA until such time as
workloads would necessitate separate organizations. This is
o a policy issue that the Council /HRA will have to resolve. In
discussing the item, the Mayor noted that there was no inten-
e tion to attempt to remove any existing persons on the HRA.
In fact, if there was a strong conviction by members to con-
tinue to serve, their desires should be highly considered.
On the other side of the coin, if they similarly see a dupli-
cation of services, the issue should be further pursued.
Herein lies the question to your office:
Can the City Council act as the Housing and Redevelopment
Authority?
- How could the change be made?
- What other legal procedures would be required to effec-
tuate this action?
4. "Item lb, Zoning Ordinance Amendment Regarding Moving Used
j ",Buildings Into or within the City, Final Reading: In
"'visiting with Scott and George on this item, I find three
'- different interpretations as to whether the ordinance, as
passed, would allow for moving a home into the community. A
`strict interpretation would not allow it even if every
current regulation was met, i.e. electrical wiring must be
stapled to an interior stud every three feet and shall not be
covered until inspected, no wall covering shall occur until
after a framing inspection is completed, etc. The Building
Inspector could reasonably complete random samplings to
determine compliance. Again, strict interpretation would
require total disassembly and reconstruction. This would be
cost prohibitive and thereby asume that move in's would not
occur. It was my understanding that this was not your
interpretation of the ordinance and is the reason that you
placed the word "substantive" into the ordinance. Scott
relayed his recollection of your interpretation of this word
to mean "forms to be processed" rather than "reasonable
judgement by the Building Official ".
LAW OFFICES
GRANNIS, CAMPBELL, FARRELL & KNUTSON
DAVID L. GRANNIE - 1874.1961
PROFFESSIONAL ASSOCIATION
DAVID L. GRANNIE, JR. 1910.1980
POST OFFICE BOX 57
VANCE B. GRANNIE
403 NORWEST BANK BUILDING
VANCE B. GRANNIS, JR.
161 NORTH CONCORD EXCHANGE
THOMAS J. CAMPBELL
PATRICK A. FARRELL
SOUTH ST. PAUL, MINNESOTA 55075
DAVID L GRANNIS, III
ROGER N. KNUTSON
612 -455 -1661
THOMAS M. SCOTT
GARY C. FUCHS
September 19, 1984
MARY S. VUJOVICH
THOMAS L. GRUNDHOEFER
DAVID L. HARMEYER
Mr. Don Ashworth
City of Chanhassen
Box 147, 690 Coulter Dr.
Chanhassen, MN 55317
Re: H.R.A.
Dear Don:
Your September 13, 1984 letter asks:
Can the City Council act as the Housing and Redevelopment
Authority?
How could the change be made?
What other legal procedures would be required to effectuate
this action?
Minnesota Statute § 462.425 provides that an H.R.A. is entirely
separate and distinct from the City. The City Council cannot be
the H.R.A. The City Council has the right, however, to appoint
the Mayor and City Council members as H.R.A. Commissioners. The
terms of office of the commissioners may be made to coincide with
their term of office as council members. Many cities use this
approach.
The change only can be made by replacing the commissioners as their
term expires or by requesting their resignations. Commissioners
cannot be removed by the City except for "inefficiency or neglect
of duty or misconduct in office." M.S.A. § 462.435.
Very truly yours,
GRANNIS, CAMPBELL, FARRELL
& KNUTSON
BY
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Roger N. Knutson
vl
S, Fp 1984
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-:'i (Y OF CH.ANHASS:I
S.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
In 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317
(612) 937 -1900
MEMORANDUM
TO: Chanhassen HRA
Mayor and City Council
FROM: Scott A. Martin, Executive DirectorVVt
DATE: October 10, 1984 \
SUBJ: Promotional Plans for Downtown Redevelopment Project.
In an effort to interest prospective developers in the Downtown
Redevelopment Project Area, the HRA has decided to organize a
gala dinner party for sometime in November for developers, ven-
ture capitalists, and real estate professionals. The Board
selected this approach over a more conventional "Request for
Proposal" approach in an attempt to attract more developer
interest in the City's Redevelopment Program (see attached RFP).
A preliminary budget of $10,000 was established by the Board
during the September 27, 1984 meeting to finance the cost of this
promotional event.
At this time, staff is looking for more specific direction from
the Council and HRA as to how the proposed event should be
organized and who should be involved in its production. Given
the complexity of making arrangements for more than 100 guests,
it is recommended that professional expertise be retained to
organize the whole affair.
We have contacted the Chanhassen Dinner Theatre to determine the
availability of dates in November on which they can accommodate
a party of 100 -150 people. As of this week, the following dates
are available:
November 6, 7, 13, 14, 15 and 20.
This matter should be discussed during next week's joint meeting
so that formal arrangements can be made during the next few weeks.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
- 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317
(612) 937 -1900
MEMORANDUM
TO: Chanhassen Housing and Redevelopment Authority
FROM: Scott A. Martin, Executive Director
DATE: September 20, 1984
SUBJ: Downtown Redevelopment Project "Request for Proposals"
Attached for your review and approval is the Preliminary Draft of
the "Request for Proposals" (RFP) for the Downtown Redevelopment
Project Area. The graphics included in the final draft will be
in color and larger in size, and the entire Prospectus will be
professionally printed and bound for a more professional
appearance.
I would propose that we review this in detail during the
September 27, 1984 meeting. Following your review and modifica-
tion (if any), the Board should adopt a motion approving this
document as representing the goals and objectives of the HRA.
Also attached is a list of prospective developers to whom I would
recommend the RFP be mailed.
If you know of any developer that should specifically be included
on our mailing list, please let me know either before or during
next week's meeting.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
October 1, 1984
v
Dear Developer:
The Chanhassen Housing and Redevelopment Authority is seeking development
proposals from qualified developers for our Downtown Redevelopment Project Area.
Enclosed you will find a prospectus outlining the goals and objectives of our
redevelopment program, which stem from an analysis of the existing strengths and
potentials of our community, combined with the realities of contemporary real
estate development.
We are extending an invitation to you to join in this agressive effort to revi-
talize Downtown Chanhassen and hope that you will give us careful consideration
as a desirable investment location. We have a market, we have a location, and
we have the mechanisms in place to help convert development potentials into
reality.
If you are interested, please contact me at Chanhassen City Hall, 690 Coulter
Drive, Chanhassen, MN 55317 (Ph. (612) 937 - 1900). The deadline for the submit-
tal of your development proposal is 4:00 p.m. on December 1, 1984. We look for-
ward to the opportunity to work with you.
Sincerely.,
Scott A. Martin
Executive Director
SAM:v
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TABLE OF CONTENTS
TheOpportunity ........................... ............................... 2
ProjectBackground ........................ ............................... 3
Project Area Maps ......................... ............................... 4 -7
ProjectObjectives ........................ ............................... 8
Redevelopment Concept Plans ............... ............................... 9 -11
Development Market Potential .............. ............................... 12
Chanhassen Trade Area ..................... ............................... 13
Site Characteristics ...................... ............................... 14
Potential Public Incentives ............... ............................... 15
Submission Requirements ................... ............................... 16
DeveloperSelection Process ............... ............................... 17
Evaluationof Developers .................. ............................... 18
THE OPPORTUNITY
Downtown Chanhassen lies about 15 miles (30 minutes) southwest of Minneapolis,
in Carver County. The City has an estimated current population of 7,200 within
the corporate limits, and a population of 8,900 in our retail trade area.
The Downtown Redevelopment Project Area lies one block north of the intersection
of State Trunk Highways No. 5 and 101, and contains approximately 40 acres of
developed and undeveloped land.
In addition to local retail and specialty shops, Downtown Chanhassen is home to
the world famous Chanhassen Dinner Theatres and Conference Center, which draws
more than 300,000 people to Chanhassen each year from throughout the Upper
Midwest.
This "Request for Proposals" offers you an opportunity to join with the City of
Chanhassen in revitalizing Downtown Chanhassen as a viable retail, office and
entertainment center. Development proposals which are consistent with our
overall Redevelopment Program will be evaluated by the Chanhassen Housing and
Redevelopment Authority (HRA). Following our competitive review of specific
proposals and developer qualifications, a developer will be selected to work
with the HRA to jointly undertake the project. Appropriate incentives will be
made available to the selected developer to ensure that the completed project
will represent an attractive investment opportunity.
-2-
PROJECT BACKGROUND
The City of Chanhassen was incorporated in 1967 following the merger of the
Village of Chanhassen and Chanhassen Township.
In 1974, the Chanhassen City Council established a Housing and Redevelopment
Authority (HRA) to study the potential for redevelopment of the Downtown Area.
In 1977, the HRA retained the Minneapolis consulting firm of BRW, Inc. to
evaluate the feasibility of a Downtown Redevelopment Project. That study
concluded that a redevelopment project was feasible and set forth the framework
for adoption of the Redevelopment Project Plan and its certification as a Tax
Increment District.
The Redevelopment Plan, as amended in 1980, is the current guide for the
implementation of future public and private improvements in the Downtown Project
Area.
As the first step towards project implementation in 1981, the HRA acquired a
90,000 sq. ft. industrial building located on a 4} acre site. This property,
located on the west end of the Project Area, is now being offered for sale to a
qualified developer for redevelopment as an office, retail, recreational, and
entertainment center. A feasibility study of the potential for adaptive reuse
of this building has been prepared by BRW, Inc. and is available to interested
developers upon request.
In addition, the Redevelopment Plan identifies more than twenty commercial sites
earmarked for acquisition, business relocation, and clearance to make way for
private development and proposed public improvements.
-3-
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PROJECT OBJECTIVES
The primary goal of this Prospectus is to facilitate the redevelopment of the
Chanhassen Downtown Project Area through the development of a new convenience
retail center, anchored by a full -line supermarket. Other facilities, such as
offices, specialty shops, restaurants, entertainment and recreational uses, and
housing, are also encouraged to complement the Central Business District.
Three supporting objectives have been adopted to reinforce the primary goal:
1. Chanhassen's downtown should function as the primary retail and service
center in the community. Therefore, any new retail and office develop-
ment should be of such scale and character as to be an important
influence on the City's retail trade area.
2. Development within the Project Area should be designed to complement and
reinforce the existing strengths of Downtown Chanhassen. The redevelop-
ment project will have to be carefully integrated into the existing
downtown, both physically and functionally, to maintain and further
establish a unique, imageable downtown area.
The net economic benefit of any redevelopment project should be positive
to the community as a whole over a reasonable period of time. While the
City has a committment to undertake and finish this project, the direct
and indirect costs to the community must be reasonable and prudent.
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-11-
CHANHASSEN
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DEVELOPMENT MARKET POTENTIAL
The Chanhassen HRA contracted with the Minneapolis consulting firm of James B.
McComb and Associates to conduct a market analysis of the Downtown Chanhassen
Trade Area. This study, which was completed in January, 1984, concluded that
market support exists for 20,000- 25,000 square feet of retail and service space
in 1985, with demand for an additional 15,000 - 20,000 square feet of retail
space by 1990.
The study also found that the potential for a conventional, full -line super-
market is limited until 1988 -1990, but that a first -phase convenience center
development could be anchored by a limited service grocery store of up to 10,000
square feet.
The potential for a unique concept specialty center oriented towards the work of
Minnesota Artists and Artisans, antique stores, and other specialty shops and
restaurants was also identified by the market analyst. A specialty center of
this type containing 60,000- 70,000 sq. ft. of floor area is marketable in 1985.
Market support also presently exists for 20,000 - 30,000 sq. ft, of office space
in the Downtown Area, with an additional 50,000- 75,000 sq. ft. needed by 1990 to
meet local demand. The primary market for office space will be small firms
engaged in business and professional services, i.e. insurance, attorneys, real
estate, manufacturers reps, and medical and dental offices.
Finally, the Chanhassen market analysis identified the potential for other uses
such as financial institutions and recreational centers (Bowling, Health /Fitness
facility) in conjunction with the initial phase of downtown redevelopment.
A copy of the Downtown Chanhassen Market Study is available to interested per-
sons upon request.
-12-
DOWNTOWN CHANHASSEN TRADE AREA
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SITE CHARACTERISTICS
The Downtown Redevelopment Project Area includes approximately 40 acres of
developed and undeveloped land, including street rights -of -way. Except for the
previously identified 41 acre site acquired by the Chanhassen HRA in 1981, the
balance of the lands earmarked for acquisition and clearance are still in pri-
vate ownership. However, the City will work closely with the chosen developer
to create a project layout within the Project Area that is mutually satisfac-
tory. Once there is concurrence on the project plan, a program to secure the
balance of the site will be promptly launched.
The topography of the Project Area is essentially level, but slopes gradually
towards the south to the adjoining railroad tracks. This change in grade may
provide the developer with an opportunity to design walk -in entrances at two
different levels of the project, if desired.
Full utilities are available within the Project Area, but the adopted redevelop-
ment plan provides for major upgrading of all public utility systems and local
streets serving the Project Area in conjunction with private redevelopment
activities. Included in this program is the eventual closing of West 78th Street
(which runs through the center of the Project Area) and the construction of a
new ringroad around the periphery of the Project Area to provide access to the
redevelopment site. A copy of the "Preliminary Feasibility Study and Design
Report" showing proposed public improvements is available upon request.
Primary access to Downtown Chanhassen from the Twin Cities Metropolitan Area is
via State Trunk Highway No. 5. Although Highway 5 is presently a two -lane road-
way from I -494 (in Eden Prairie) to Chanhassen (a distance of 42 miles), the
State of Minnesota has recently approved funding to upgrade Highway 5 to a four
lane controlled access highway beginning in 1986. That segment of Highway 5
which skirts Downtown Chanhassen will be upgraded in 1988 according to the
Department of Transportation.
-14-
POTENTIAL PUBLIC INCENTIVES
The Chanhassen Housing and Redevelopment Authority recognizes that financial
incentives are a necessary ingredient to any successful downtown redevelopment
program. However, the HRA has chosen not to lock itself into any specific
package of incentives in order to encourage creativity by prospective
developers.
The redevelopment incentive tools and techniques which the City will consider
utilizing to make the project work include:
a. Tax Increment Financing.
b. Industrial Development Revenue Bonds.
c. Community Development Block Grants (Chanhassen is an entitlement City).
d. Public Land Acquisition for Site Assembly (through eminent domain if
necessary).
e. Sale of Publicly Acquired Redevelopment Sites at a Cost Write -Down.
f. Installation of Strategic Public Improvements (streets, utilities,
parking, etc.)
g. Tax - exempt Municipal Bonds for Public Improvement Special Assessments.
h. Demolition and preconstruction preparation of Redevelopment Sites.
i. Lease of Publicly Owned Land to Developer.
j. Vacation of Certain Public Streets and Alleys.
k. Fast -Track City Permit-Review Process.
The selected Developer will be able to tailor a mix of incentives needed to make
the project work. The City will require a cash flow statement for the project
which clearly outlines how the requested incentives will fit into the workings
of the total development package. Sufficient supporting information shall be
supplied to the City so that it can be determined that the requested financial
assistance is justifiable.
-15-
SUBMISSION REQUIREMENTS
To be considered for designation as Developer of Record for the Chanhassen
Downtown Redevelopment Project Area, a developer must submit all of the
following materials:
1. Letter of Interest in participating in Chanhassen's Redevelopment
Program.
2. Brief statement of Developer's general development orientation and
approach to the Chanhassen Project.
3. Name, address, phone number, contact person, and legal entity
(corporation, limited partnership, joint venture, etc.) by which the
developer proposes to do business in Chanhassen.
4. Name and address of architectural firm and other professionals antici-
pated to be working with the developer as part of the Chanhassen develop-
ment team.
5. Identification of the developer's project manager and other key staff
persons to be assigned to the project.
6. A description of overall qualifications, including examples of experience
with similar projects successfully completed by the principals of the
development team. A list of references (by project) must also be provided.
7. A Preliminary Site Plan which identifies the specific sites /parcels pro-
posed for redevelopment and which graphically shows the general concept
of the proposed project.
8. Evidence to demonstrate the developer's capability to finance a project
of this size.
9. Description of the type of financial incentives required from the City
to make the proposed project work.
10. Any additional information that will substantiate the development team's
capabilities.
All developer proposals must be submitted to the Executive Director of the
Chanhassen HRA, 690 Coulter Drive, Chanhassen, Minnesota 55317, by the deadline
date noted on the cover letter included with this Prospectus.
-16-
DEVELOPER SELECTION PROCESS
1. Letters of Interest and all other required proposal materials must be sub-
mitted to the Chanhassen HRA by the deadline date.
2. Upon receipt of all submittals, the Chanhassen HRA will review them and
invite a selected number of development teams to come to Chanhassen for an
interview.
Following the interviews, the HRA will select a developer to be designated
as the "Developer of Record ". Once so designated, that developer shall have
the exclusive right to negotiate with the City for the implementation of a
mutally satisfactory Downtown Project.
4. The selected Developer of Record must be prepared to promptly enter into an
"Agreement for Exclusive Negotiations" with the HRA for the joint develop-
ment of a specific proposal for the Downtown Project Area. The exact terms
of this Agreement shall be formulated by both the developer and the City.
A detailed proposal for the Downtown Project will then be developed under
the terms of the Agreement. The developer will be expected to undertake the
major efforts, with the City providing support and continuous feedback. The
detailed proposal should include, but not be limited to, the following
items:
a. Basic Project Design
b. Required Public Improvements
c. Site Acquisition and Conveyance Strategy
d. Financing Pro Forma for Public and Private Improvements
e. Assignment of Public and Private Sector Responsibilities
f. Project Timing
A period of 120 days will be provided to the developer for performance under
the terms of the Agreement. The City will retain the right, in its sole
discretion, to extend the negotiations beyond the original time period if
substantial progress has been made and it appears that such an extension is
necessary to continue good faith efforts. In the event the City and the
developer cannot make adequate progress towards a satisfactory Development
Proposal, the Agreement for Exclusive Negotiations shall be terminated in
accordance with the terms contained therein.
6. After the City and the Developer have created a mutually agreeable develop-
ment plan for the Project Area, both parties will negotiate a formal
"Redevelopment Agreement ". This agreement will specify each party's speci-
fic roles and obligations in the implementation of the Project. The
time frame for these negotiations will be subsequently determined in
recognition of the complexities of public /private partnerships and downtown
redevelopment projects.
-17-
EVALUATION OF DEVELOPERS
All prospective developers will be evaluated in accordance with the following
criteria:
Developer Expertise
Property will be given to the development team that demonstrates the expertise
required to successfully implement a downtown redevelopment project like
Chanhassen's.
Developer Quality
Priority will be given to the developer that demonstrates a track record of high
quality development, sensitivity to the needs of the public sector, design
excellence, innovative packaging, and the ability to attract quality tenants.
Experience With Similar Projects
Experience developing similar downtown projects will be considered a definite
asset, but is not an absolute prerequisite. Whatever experience credentials are
submitted in lieu of downtown redevelopment projects must be relevant and trans-
ferable.
Organization and Personnel
The personnel assigned to the development team and the manner in which they will
be organized and managed for the Chanhassen Project will be considered in the
evaluation of developers.
Financial Capability
Due to the magnitude of this project and the period of time over which develop-
ment might be staged, the financial capability of the developer will be a major
factor in our evaluation. Subsequent submission of detailed financial data may
be required prior to designating the Developer of Record.
so
9/26/84
Mailing List for Downtown Redevelopment Project REP
Ryan Development
Lincoln Properties, Inc.
C/o Bob Ryan
c% Thaws P. DuFresne, President
6440 Flying Cloud Drive
5740 Green Circle Drive
Eden Prairie, MN 55344
Minnetonka, MN 55343
(941 -9455)
(938 -9000)
Realty Management & Development
kI Alderson Develo orp.
Services, Inc.
2510 hah ue7)
C/o Richard
Minn s, SMw„ 5404
2001 Killebrew Drive
ew Drive
-9877) �^�\
Minneapolis, MN
(854 -8800)
Security Development Co., Inc.
Korsunsky, Krank, Erickson Architects, Inc.
c/b Bruce Peterson, President
570 Galaxy Building
7901 Flying Cloud Drive
330 Second Avenue South
Suite 154
Minneapolis, MN 55401
Eden Prairie, 6T) 55344
(339 -4200)
(941 -0660)
Bossardt Christenson Corp.
The Boisclair Corporation
Butler- Square - Suite 980
2925 Dean Parkway
100 No. Sixth Street
Minneapolis, MN
Minneapolis, MJ 55403
(926 -1631)
Brighton Development Corp.
Northland Development Co. of Minneapolis
C/o Richard Brustad
c% James Steubner
3100 W. Lake Street
7000 Northland Drive
Minneapolis, My
Brooklyn Park, &A) 55428
(922 -1232)
(535 -5093)
United Properties, Inc.
Winfield Development
C/o Boyd Stofer
c% Richard Martens
3500 West 80th Street
5780 Lincoln Drive
Bloomington, MN 55431
Edina, MN 55436
(893 -8820)
(938 -3354)
Construction 70, Inc.
Homart Development Ca'psny
1430 West County Road C
Xerox Centre
St. Paul, eM1 55113
Suite 3100
(636 -4390)
55 West Monrce
Chicago, Illinois 60603
B. W. & Leo Barris Company
Winsor /Faricy Architects, Inc.
1115 Second Avenue So.
28 West Fifth Street - Suite 375
Minneapolis, MN
St. Paul, tMI 55102
(332 -4527)
(227 -0655)
Landmark /Appletree Enterprises
The Towle Canpany
1 Appletree Square
c% William S. Reiling, President
Bloomington, M
600 Second Avenue South
(853 -2419)
Minneapolis, MN 55402
MELC American Properties, Inc.
Fred O. Watson Company
P.O. Box 16145
252 S. Plaza Building
Minneapolis, MJ 55416
Minneapolis, MN 55416
Trammell Craw Cam¢any
7667 Cahill Road
Edina, M 55435