HRA 1984 09 27AGENDA
REGULAR MEETING
Chanhassen Housing and Redevelopment Authority
Thursday, September 27, 1984
Chanhassen City Hall, 690 Coulter Drive
City Council Chambers
7:30 p.m.
7:30 p.m. 1. Call to Order.
2. Approve Minutes of August 2, 1984 meeting.
3. Presentation of West 79th Street /Railroad Crossing
Traffic Study: BRW, Inc.
4. Approve Leases for space in old Instant Web Building:
a. Minnetonka, Inc.
b. E.A. Sween Company
c. Chanhassen American Legion Post #580
5. Downtown Redevelopment Project: Review Preliminary
Draft of Developer "Request for Proposal ".
6. Review Proposed 1985 Operating Budget.
7. Approval of Bills.
8. Old Business.
9. New Business.
10:00 p.m. 10. Adjournment.
MINUTES
CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY
REGULAR MEETING
AUGUST 2, 1984
Call to Order
Chairman Whitehill called the meeting to order at 7:30 p.m.
Present were Commissioners Bohn, Horn, Swenson, and Whitehill.
Robbins was absent. Executive Director Martin was also present.
Oath of Office - James Bohn
Commissioner James Bohn took the Oath of Office of HRA
Commissioner.
Election of Officers
Swenson moved, seconded by Whitehill, to elect the following
Commissioners to serve as HRA officers during the 1984 -1985 HRA
year:
Chairman: Commissioner Whitehill
Vice - Chairman: Commissioner Horn
Secretary: Commissioner Bohn
All voted in favor and the motion carried.
Approval of Minutes
Horn moved, seconded by Bohn, to approve the minutes of the April
19 and May 17, 1984 meeting as presented. All voted in favor and
the motion carried.
Approval of Old Instant Web Building Leases
Bohn moved, seconded by Horn, to approve the following leases for
the rental of storage space in the Old Instant Web Building:
Minnetonka, Inc.; Gopher Equipment, Inc.; and Dermatone
Laboratories, Inc. All voted in favor and the motion carried.
Community Recreation Facilities Committee Status Report
Don Ashworth, City Manager, presented a brief status report con-
cerning the work of the Community Recreation Facilities
Committee. He advised the Board of the Committee's continued
interest in renovating a part of the Old Instant Web for public
recreational use in combination with a privately owned and
operated Bowling Center. Ashworth explained that several
meetings had been held during the past three months with a
prospective Bowling Center operator who has shown a great deal of
interest in such a project. He distributed a report prepared by
BRW, Inc. which outlines cost estimates and potential design
layouts for renovation of the rear portion of the building, as
compared to the cost of building a new, freestanding Bowling
Center.
Chanhassen HRA Minutes
August 2, 1984
Page 2
The Board encouraged staff to attempt to negotiate an agreement
with the Bowling Center developers as soon as possible and also
encouraged the Community Recreation Facilities Committee to move
ahead with their plans to determine project feasibility.
Downtown Redevelopment Project: Developer Solicitation
Alternatives
The Board discussed several alternative approaches for soliciting
Downtown Redevelopment proposals from developers during the next
few months. The Board agreed that a formal "request for propo-
sal" (RFP) be prepared that outlines the various elements of the
adopted Downtown Redevelopment Program and establishes a time-
table for the review of proposals. The RFP should include the
entire Downtown Core Area, with special emphasis on the old
Instant Web Building and site. The Board also agreed that the
RFP should include a statement regarding the City's willingness
to clear and prepare Downtown Redevelopment sites (including the
Instant Web site) for new retail and office construction.
Martin was directed to prepare a preliminary draft of an RFP for
review by the Board during the September meeting.
Approval of Minutes
Horn moved, seconded by Whitehill, to approve the bills for June
and July, 1984, as presented. All voted in favor and the motion
carried.
Old Business
Martin reported that the previously authorized traffic study for
the Proposed West 79th Street /Downtown Railroad Crossing was
currently underway and would be completed by mid September. The
consultant's report should be available for presentation during
the September meeting.
Adjournment
Bohn moved, seconded by Swenson to adjourn the meeting at 9:25
p.m. All voted in favor and the motion carried.
3.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
,u -• (612) 937 -1900
MEMORANDUM
TO: Chanhassen Housing and Redevelopment Authority
FROM: Scott A. Martin, Executive Director *A
DATE: September 21, 1984
SUBJ: West 79th Street Traffic Study
Attached for your review are the preliminary results of the West 79th Street
Traffic Study authorized by the Board on May 17, 1984.
You may recall that 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.
The study concludes that, even with full commercial development along West 79th
Street, traffic operations at the TH 101 (Great Plains Blvd.) 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.
The author of the traffic study will be at next week's meeting to make a brief
presentation and answer your questions.
Attachments
1. Copy of BRW Traffic Analysis Memorandum dated September 20, 1984.
2. HRA Minutes dated May 17, 1984.
BENNETT RINGROSE. WOLSFELD. JARVIS. GARDNER. INC.
September 20, 1984
PLANNING
TRANSPORTATION
ENGINEERING
ARCHITECTURE
THRESHER SQUARE • 700 THIRD STREET SOUTH • MINNEAPOLIS. MN 55415 • PHONE 6121370 -0700
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 '' ;ITY OF CHIANHASSEN
SUBJECT: West 79th Street Area Traffic Analysis
SEP 211984
O'aR 311 9 GEVELOF�ie�JT O i'
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 TH
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
r-
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, 11A11 representing little or no
delay to vehicles and 11F11 representing occassional, substantial delay during the
peak hour. Level of Service '1D" 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 "A11 on TH 101 and 11811 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 1B11 to over
capacity operation, due to increased traffic volumes.
I
L
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.
r'
I
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 Crossing
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 position that a new crossing was
necessary to relieve traffic congestion at W. 79th Street and
Great Plains Boulevard.
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
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 IVIII►1A
DATE: September 25, 1984
SUBJ: Revenue and Operational Expenses for HRA Building (Old
Instant Web facility).
As we discussed briefly during our last meeting, a decision
should be made this month concerning the immediate future use of
the HRA building. As you know, since taking possession of this
building in January, 1983, our operational costs have exceeded
revenues by a two to one ratio. A detail of revenues vs. expenses
follows:
1983 1984 1984
Revenues (actual) (actual as of 8/31) (estimated
Building Rental
$23,961
$15,951
$30,000
Expenses
Utilities
$26,255
$27,342
$42,000
Insurance
3,529
2,455
3,000
Taxes
4,595
-0-
12,400
Maintenance &
Repair
6,434
3,750
5,000
Administration
2,700
1,900
2,800
Total Expenses
$43,513
$35,447
$65,200
TOTAL REVENUE
UNDER EXPENSES
- $19,552
- $19,496
- $35,200
The administrative costs included above are estimates based upon
the fact that approximately 3 hours /week of my time is spent
overseeing the leasing and continued maintenance and operation of
this building. Real estate taxes, according to State Law, are
based upon 30% of gross annual rents. 1984 year -end estimates
for rental income and utilities have been carefully calculated to
represent realistic figures, based upon tenant plans and actual
electrical and natural gas usage last year during the first two
months of the winter heating season.
Chanhassen HRA
September 25, 1984
Page 2
Liability insurance costs would likely increase by 258 - 408 if
the building was vacated.
This 90,200 square foot building is presently leased to ten (10)
businesses occupying a total floor area of 26,729 sq. ft. (see
attached floor plan). The lease with Dermatone Labs, Inc.
expires at the end of this month. Minnetonka, Inc. has decided
not to lease the additional 9,200 sq. ft. shown on the plan, and
will also move out of the remainder of their leased space by the
end of November. E.A. Sween Company will be out by November 1st.
The remainder of the tenants have indicated an interest in con-
tinuing their.leases for an indefinite period.
As you can see, our revenue from building rental falls far short
of our operational expenses. Obviously, the winter heating
season is the peak demand period for natural gas and electricity.
Also, the building cannot be easily or economically subdivided to
allow for tenant paid utilities. -
Therefore, the Board should seriously consider closing down the
building by December lst in order to save an estimated $30,000 -
$35,000 in annual operating costs. This will provide the
remaining tenants with a sixty day notice to relocate.
Should the building be "shut- down" and left unheated, the struc-
tural support systems for the roof in the center (concrete
block) section of the building may fail, according to two struc-
tural engineers who inspected the building following last year's
roof collapse. However, this portion of the building has been
identified as requiring major reconstruction should the existing
building shell be adapted for future retail, office, or
recreational use.
The City has budgeted $45,000 in Community Development Block
Grant funds for demolition and site preparation for all or part
of the building. These funds must be expended by June 30, 1985
or returned to Hennepin County for redistribution to other
cities.
RECOMMENDATION
I recommend that the HRA building be closed effective December 1,
1984. The building should be retained by the Authority until its
ultimate disposition is determined through redevelopment nego-
tiations which will hopefully be concluded by next spring. The
status of the building should then be addressed, which may
include reopening (for short or long term lease), outright sale
for industrial use, demolition, or continued indefinite moth-
balling.
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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 18, 1984
SUBJ: Leases in Old Instant Web Building.
The following companies have leased space in the Old Instant Web Building since
our last meeting. Each lease is for temporary warehouse storage space only, and
runs on a month -to -month basis.
Approval of the following leases is recommended:
1. Minnetonka, Inc.: 9,200 sq. ft./$1,533.33 per month
2. E.A. Sween Company: 3,000 sq. ft./$437.50 per month
Attached for your reference is a floor plan showing the location of all tenants
presently leasing space in this building.
I have also received the attached request from Chanhassen American Legion Post
#580 to utilize the presently vacant office area in the building for a Halloween
"Haunted House ". This area has remained vacant since the HRA took possession of
the building last year, due primarily to high heating costs and the short term
lease period being offered to prospective tenants. Since the Legion wishes to
use this space for a one -time, nonprofit, community oriented special event, I
recommend approval of the Legion's request at no charge, subject to liability
insurance coverage of $1,000,000 and restoration and clean -up of the building
and grounds by November 5, 1984.
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September 19, 1984
Chanhassen H.R.A.
Chanhassen, Minnesota 55317
Attn: Scott Martin
The Chanhassen Legion Post #580 and the Auxiliary request
! permission to use the Offices in the Old instant Web Building
for a HALUM HOUSE from October 27th thru October 31, 1984.
i
Since this part is vacant, we would like to use it during the
tenth of October to set it up. We will clean it up and leave
it in its present condition. This event will be adult supervised
at all times.
The City Park Commission is having a Halloween Party on
the 31st which includes a visit to the haunted house.
This is a children and Youth Project, and we do not plan
on making a profit. Commodities and Personal Services are on
a volunteer basis. We request that you provide this space at
no cost to us, since this is a non profit cat¢mmity event.
We will provide liability insurance coverage.
Thank You,
- �tYY- C ✓i�`':1 �t2.- Vic:. /
Thanas O. Klingeihutz
Canmander
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Saturday, Oct. 27 - 7:00 - 9:00
Sunday, Oct. 28 - 6:00 - 9:00
Monday, Oct. 29 - 6:00 - 9:00
Tuesday, Oct. 30 - 6:00 - 9:00
Wednesday, Oct. 31 - 6:00 - 9:00
OLD INSTANT WEB BUILDING
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690 COULTER DRIVE • P.O. BOX 147 •CHANHASSEN, MINNESOTA 55317
(61 2) 937-1900
MEMORANDUM
TO: Chanhassen Housing and Redevelopment Authority
FROM: Scott A. Martin, Executive Director 1W'"1
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 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 modification (if any), the Board should
adopt a motion approving this document as representing the goals and objectives
of the HRA.
I will provide you with a list of prospective developers next week 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. BOA 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 `
Enclosure
TABLE Of CONTENTS
TheOpportunity ........................... ............................... 2
ProjectBackground ........................ ............................... 3
Project Area Maps ......................... ............................... 4 -7
ProjectObjectives ........................ ............................... 8
RedevelopmentConcept Plans ............... ............................... 9 -11
DevelopmentMarket Potential .............. ............................... 12
ChanhassenTrade Area ..................... ............................... 13
SiteCharacteristics ...................... ............................... 14
Potential Public Incentives ............... ............................... 15
SubmissionRequirements ................... ............................... 16
DeveloperSelection Process ............... ............................... 17
Evaluationof Developers .................. ............................... 18
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UPPER LEVEL PLAN
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Acquisition Plan
14 -19
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48 6 C
REEDEVELLO MENT J IF
PROJECT
CHANHASSEN, MIIWESOiF �'--'-
Loop Road Acquisition
aRedevelopment Acquisition
0 courtyard Acquisition r is Kill,
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.
3. 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.
10
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------------------
DOWNTOWN
REDEVELOPMENT
PROJECT
Deciduous Trees C ANHASSEN .'NNLSOTA
(Ash,Ho.eyIoc.st,MaPI.)
Ornamental Trees
(Flowering C,ab,Am.r Maple) -- — — - — —Pfp
Evergreens (PIne,Spruce,FIr)
(:::
Proposed Plan D Shrub. (Viburnum,Dogwood,Ninebark)
Street Light — Pedestrian Light
00
Goverrrtlsnt/YStieltiorlal Conl*x
Bank i
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— -- Parking <
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Medium - Daheiry Hous'rlg '
Hotel Stage 2 ,( Hotel Stage
Chanhassen Dinner Theatre
St. Huberts
Church School
Parking
100000000000
St. Huberts
W Church
Parkng O
i Cey Hall
10p0pO 0O 'Historical
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T CHANHASSEN
DOWNTOWN
REDEVELOPMEP
PROJECT
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.. .,.,..�,..,�., ..�,...,�,.�......,�.. rHANHPccrr,l• .rn1NES
Bank
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W. 78TK Street Q n A
Commercial
Commercial
Parking
Illustrative Core Area
Concept Plan
Alternative
EN
Super Market
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Med'um- Density Housing
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Parking
to ® PHASE 2 Retail
Retail p D
Retail Q0000000000000�
Retail V U o
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Chanhassen Dinner Theatre
Rated (Frontlet Bldg)' ��OOp OO �2
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Retail/Office Q
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Parking
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Devebpment
-11-
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Historical District
CHANHASSEN
DOWNTOWN
REDEVELOPME
PROJECT
CHANHASSEN, MINN
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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C H A S K A 169 `JJ )LOGNE- D.h1 ... SHAKOPEE tl
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Scale In Miles Pp
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 4f 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
Letters of Interest and all other required proposal materials must be sub-
mitted to the Chanhassen HRA by the deadline date.
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.
3. 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.
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.
5. 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.
on
67.
CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY
Iml 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
MEMORANDUM
TO: Chanhassen Housing and Redevelopment Authority A•
FROM: Scott A. Martin, Community Development Director �/��U/v1/�
DATE: September 21, 1984
SUBJ: Proposed 1985 HRA Operating Budget
Attached for your review and approval is the proposed 1985 HRA
operating budget.
This budget assumes the continued operation, maintenance, and rental
of the old Instant Web Building during the next year. A more specific
comparison of costs vs. revenue for this building will be available
for your review at next week's meeting.
I will also have an updated version of the Tax Increment Financing
Plan available for distribution at the meeting.
460
460
460
460
460
460
460
460
460
460
KIM'
K-111
FUND: 460 H.R.A.
SPECIAL REVENUE FUNDS
1985 BUDGET - REVENUE
BUDGET
1984
REVENUE
GENERAL PROPERTY TAX
3011
Delinquent Property Tax
3012
Tax Increment Receipts
3041
Homestead Credit
3099
TOTAL PROPERTY TAX
CHARGES FOR CURRENT SERVICES
3601
Sale of Docmrent
3699
TOTAL CURRENT SERVICES
OTHER REVENUE
3801
Interest Earnings
3803
Building Rental
3805
Sale of Properties
3808
Ins., Recover. & Reimb.
3899
TOTAL OTHER REVENUE
3999
TOTAL REVENUE
TOTAL EXPENDITURES
REVENUE OVER(UYDER)EXPENDITURES
Fund
Balance Forward
Total Resources over (under) Liabilities
-65-
611,000
611,000
0
0
1,500
1,500
612,500
690,091
- 77,591
- 230,723
- 308,314
ESTIMATED
1984
17,000
590,000
1,700
608,700
5
5
0
30,000
16,600
8,600
55,200
663,905
670,640
-6,735
- 32,773
- 39,508
BUDGET
1985
10,000
790,000
0
800,000
0
0
0
26,000
0
0
26,000
826,000
� 0
137,320
- 39,508
97,812
y
460
460
460
460
460
460
460
460
460
460
460
460
1460
J 460
460
460
460
460
460
1460
1460
19
,1.460
FUND # 460 - HOUSING AND REDEVELOPMENT AUTHORITY
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
CONTRACTUAL SERVICES
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
1460 4701 land Purchase & Improvements
1460 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
02
A
0
456,568
70,303
526,871
690,091
-66-
ESTIMA'T'ED
1984
36,900
4,390
1,620
300
43,210
300
200
500
BUDGET
1985
38,980
4,380
1,780
300
45,440
300
200
500
15,000
DEBT
SERVICE
460
4801
Debt Principal
460
4802
Debt Interest
460
1460
4804
S/A Payments
750
4899
TOTAL DEBT SERVICE
1460
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
02
A
0
456,568
70,303
526,871
690,091
-66-
ESTIMA'T'ED
1984
36,900
4,390
1,620
300
43,210
300
200
500
BUDGET
1985
38,980
4,380
1,780
300
45,440
300
200
500
15,000
30,000
0
0
36,000
- 3%Q4W1=
200
2,000
500
500
250
250
750
750
11,900
13,090
700
700
3,000
3,500
-7,80 ZogoD
�;8ec�i3OIIO
5,000
2,500
4,000
0
�� aD
io9a
7,500
0
7,500
0
477,680
480,450
56,650
63,200
534,330
543,650
670,640
- 608,,680
otpol,!
I
AMJkUQ � a►vt 0641 4.
ConnVL IA f
DUCLOPAW 6IOCk
9AUr
J 4\
PLANNING AREA
IV -
PROJECT STATUS
REPORT
J
AUGUST
31, 1984
Ij 1
Community:
CHANHASSEN
Year Appl
# Proj
# Activity
ERS
Encumbered
Budget
Expended
Balance
VIII
709
HSG NEEDS STUDY /PLANNING
CE
428
428
428
-0-
VIII
710
COMP PLAN IMPL /PLANNING
CE
7172
7172
2669
4,503
IX
805
ADMINISTRATION
EX
380
1832
380
1,452
IX
908
Kv SITE CLEARANCE AND PREPARATION
AR
0
45000
0
45,000 *
IX
909
DT PROJECT MARKETING PLAN
EX
20000
20000
8785
11,215'x'
IX
910
REHAB PRIVATE PROPERTY
CE /EX
37588
37588
0
37,588
X
007
'F LAND ACQ (DT REDEVELOPMENT)
AR
0
33000
0
33,000*
X
803
ADMINISTRATION
EX
300
300
0
300
Subtotal
65,868
145,320
12,262
133,058
I -VII
000
BALANCE YEARS I - VII
9800
9800
9800
0
TOTAL
75,668
155,120
22,062
133,058
Drawdown (Years VIII - X)
8%
Drawdown (Cumulative)
14%
AMJkUQ � a►vt 0641 4.
r
MINNEAPOLIS DENVER BRECKENRIDGt PHOENIX
City of Chanhassen H.R.A.
7610 Laredo Drive
Chanhassen, MN 55317
Attn: Scott Martin
RE: Chanhassen C.B.D. Redevelopment District
Traffic Analysis for Proposed new railroad crossing
Payment #1 Period of July, 1984
Classification Hours
Sr. Professional 4.50
Sr. Technician 4.00
Technician 8.00
Salary Cost $ 267.99
2.0 x $267.99
INVOICE
DATE: July 31, 1984
JOB NO: 40 -8424
$ 535.98
161984
COMM1UNP DEVELOPMENT DEF
BENNETT. RINGROSE, WOLSFELD. JARVIS. GARDNER. INC. • THRESHER SQUARE • ]W THIRD STREET SOUTH • MINNEAPOLIS. MN 55415 • PHONE 612/370 -0700
I
-L✓
MINNEAPOLIS DENVER • BRECKENRIDGL • PHOENIX
City of Chanhassen H.R.A.
7610 Laredo Drive
Chanhassen, MN 55317
Attn: Scott Martin
INVOICE
DATE: August 31, 1984
JOB NO: 40 -8424
RE: Chanhassen C.B.D. Redevelopment District
Traffic Analysis for Proposed new railroad crossing
Payment , #2 Period of August, 1984
Classification Hours
Sr. Professional 7.00
Professional II 10.00
Salary Cost $ 353.70
2.0 x $353.70 $ 707.40
Mileage 66.96
CITY OF CHANHASSEN M
r p 191984 gfzolr¢
1- rimmUNiTY DE`JELUNME(iT Ccr -4306
BENNETT. RINGROSE. WOLSFELD, JARVIS, GARDNER, INC. • THRESHER SOUARE • 700 THIRD STREET SOUTH • MINNEAPOLIS, MN 55415 • PHONE 612/370 -0700
I