Loading...
HRA 1982 08 19AGENDA REGULAR MEETING Chanhassen Housing and Redevelopment Authority Thursday, August 19, 1982 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 May 20, 1982 Meeting. 3. Election of Officers - (Chairman, Vice - Chairman, and Secretary). 4. Consider Extension to Downtown Project Purchase Option Agreements: a. Chanhassen Tire & Auto (Havlik Property) b. Riviera Supper Club (Krueger Property) 5. Consider Offer from Minnesota - Victoria Oil Company to Sell Chanhassen Cenex. 6. Approve 1983 Operating Budget (Resolution #82 -8). 7. Adopt Resolution #82 -9 Ratifying Execution of United Mailing Assessment Agreement. 8. Adopt Resolution #82 -10 Appointing HRA Deputy Director. 9. Approval of Bills. 10. Old Business. 11. New Business. 9:30 p.m. 12. Adjournment. MINUTES CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY REGULAR MEETING MAY 20, 1982 CALL TO ORDER Vice - Chairman Cliff Whitehill called the meeting to order at 7:40 p.m. Present were Commissioners Bohn, Horn and Whitehill. Commissioners Gullickson and Russell were absent. Executive Director Martin and Assistant City Attorney Mertz were also present. APPROVAL OF MINUTES Bohn moved, seconded by Horn, to approve the minutes of the March 18, 1982 meeting as presented. All voted in favor and the motion carried. SPECIAL ASSESSMENT REDUCTION PROGRAM (RESOLUTION #82 -4) Martin presented proposed revisions to pages 4, 8, 8a, 14, and 15 of the standard form Assessment Agreement which were pre- pared by the Attorney to clarify language in the Agreement per - taining to the application of HRA special assessment reduction payments against the outstanding principal balance, as opposed to both principal and interest. Horn moved, seconded by Bohn, to adopt Resolution #82 -4, Clarifying the Amount of Assessment Reduction Payments and Clarifying the Nature of Covenants to be made by the Redeveloper. All voted in favor and the motion carried. FLUOROWARE, INC. ASSESSMENT AGREEMENT - (RESOLUTION #82 -5) Martin reviewed the proposed Assessment Agreement for the Fluoroware, Inc. project as executed by the Redeveloper, and explained that the total amount of the HRA special assessment reduction payment obligation is $80,612, based upon a market value of $1,151,600 for building and site improvements. Mr. Jay Bennett, Attorney for Fluoroware, Inc. was present to represent his client. He explained that 1981 real estate taxes had been placed in escrow awaiting establishment of the Special Assessment Reduction Program. He requested that the delinquent tax penalties in the amount of $2,818.44 added to the unpaid 1981 taxes be paid by the HRA, and that the penalties be cre- dited against the total assessment reduction due Fluoroware. Mertz explained that the proposed "Second. Addendum to the Assessment Agreement" provided for the payment of tax penalties as "eligible assessments ". ^ Horn asked Mertz if payment of the tax penalties would establish a legal precedent which could open the door to Page 2 - HRA Minutes - May 20, 1982 similar requests in the future. Mertz responded that no prece- dent would be established due to the unique nature of the Fluoroware situation. Bohn and Whitehill felt that Fluoroware's request to credit payment of tax penalties against the total HRA assessment payment obligation was reasonable in light of the considerable time (over 2 years) that it took the HRA to enact the assessment reduction program, and because Fluoroware had apparently relied on the establishment of the program as an inducement to build within the Business Park. Whitehill moved, seconded by Horn, adoption of Resolution #82 -5 Approving Participation of Fluoroware, Inc. in the Assessment Reduction Program; and, approval of the first and second adden- dums to the Standard Form Assessment Agreement as drafted by the Attorney; and, approval of revised pages 4, 8, 8a, 14, and 15 of said Assessment Agreement in order to clarify the amount of the Assessment Reduction Payment. The total assessment reduction payment to be paid by the HRA under the terms of the Assessment Agreement with Fluoroware, Inc. shall be $80,612, and the HRA elects to pay this amount in semi - annual installment payments to the City, until such time as the HRA elects to prepay the remaining principal balance. All voted in favor and the motion carried. DAY_CO CONCRETE /BROCKPAHLER ASSESSMENT AGREEMENT - (RESOLUTION ------ - - - - -- - - - -- -- - - - - -- # 8 2 - 6 ) - - - - -- Martin reviewed the proposed Assessment Agreement for the Dayco Concrete /Brockpahler project as executed by the Redeveloper. He explained that the total amount of the HRA special assessment reduction payment is $26,348, based upon a market value of $376,400 for building and site improvements. Mr. David Brockpahler, redeveloper, was present to answer any questions of the HRA. Bohn moved, seconded by Whitehill, adoption of Resolution #82 -6 Approving participation of David W. Brockpahler in the Assessment Reduction Program; and, approval of the Addendum to the Assessment Agreement as drafted by the Attorney; and appro- val of revised pages 4, 8, 8a, 14, and 15 of the standard form Assessment Agreement clarifying the amount of the special assessment reduction payment to be made by the HRA. The total assessment reduction payment to be made by the HRA under the terms of the aforementioned Assessment Agreement shall be $26,348. The HRA shall pay this amount to the City in semi- annual installment payments until such time as the HRA elects to prepay the remaining principal balance. All voted in favor and the motion carried. Page 3 - HRA Minutes - May 20, 1982 UNITED MAILING, INC. ASSESSMENT AGREEMENT - (RESOLUTION 9182 -7) Martin presented the proposed Assessment Agreement for the United Mailing, Inc. project, which consists of a 184,600 sq. £t. Office /Manufacturing /Warehouse facility on a ten (10) acre site in the "Park Two" subdivision. He explained that the Assessor has agreed to establish a market value based on actual "utilization" of the United Mailing, Inc. facility over a 4 -year period. The Assessor has certified an "average" market value of $1,981,400 for building and site improvements to be ^ used for the purpose of computing the assessment reduction obligation of the HRA. Based on this market value, the HRA special assessment reduction payment totals $138,698. Martin added that levied and pending special assessments are approxi- mately $128,483, and that trunk sewer and water unit charges will likely be an additional $25,000 - $30,000. Consequently , the HRA's payment obligations will not cover 100% of the costs associated with public improvements sqrving the United Mailing, Inc. site, as was indicated in the May 14, 1982 memorandum from Martin to the HRA. Bohn moved, seconded by Horn, approval of Resolution 9182 -7 Approving the Assessment Agreement for the United Mailing Building; and, approval of the Addendum to said Assessment Agreement; and, approval of revised pages 4, 8, 8a, 14 and 15 of the standard form agreement as previously approved by Resolution 9182 -4. The total assessment reduction payment to be paid by the HRA under the terms of the United Mailing, Inc. Assessment Agreement shall not exceed $138,698. The HRA shall pay this amount to the City in semi - annual installment payments until such time as the BRA elects to prepay the remaining prin- cipal balance. All voted in favor and the motion carried. DOWNTOWN PROJECT REDEVELOPER AGREEMENTS: 6 -MONTH EXTENSIONS Martin reviewed the request of Bloomberg Companies and Kraus - Anderson Development Corporation for six month extensions to their respective Redeveloper Agreements, which are due to expire on May 27, 1982. He recommended approval of both exten- sion requests in order to maintain the status quo with the Downtown Redevelopment Project, because of the Developer's knowledge and continued interest in the Project, and because it would be unlikely that other Developers could be attracted to ` construct the Project under the existing economic conditions. He added that the financial position of the Redevelopment Project Tax Increment District should continue to improve during the next year or two, even without the start of the Downtown Project construction. Martin also advised the HRA that extension of these agreements must be approved by the City Council following HRA action. Page 4 - HRA Minutes - May 20, 1982 William McRostie of Bloomberg Companies and Dennis Spalla of Kraus - Anderson were both present to speak in support of their respective requests. Spalla said that Kraus - Anderson is still interested in constructing their portion of the Downtown Project, but added that they may request a contract revision to allow them to build the project in phases due to high interest rates and dif- ficulty in securing prime tenants. He said that Phase One would likely involve renovation of the Instant Web building. McRostie said that Bloomberg Companies can't move forward with their portion of the project until Kraus- Anderson and the City starts construction. John Havlik was present and expressed concern over the uncer- tainty that the overall Downtown Project has created for his business. Horn stated that he preferred a one -year contract extension, since it is highly unlikely that construction will begin within the next six months. Spalla said that Kraus - Anderson would agree to a one -year extension if the HRA preferred it. Whitehill and Bohn both felt would be better protected by that would give the City more decision - making. that the interests of the City short -term contract extensions flexibility in future Whitehill moved, seconded by Bohn, to approve a six -month extension to both the Bloomberg Companies and Kraus - Anderson Redeveloper Agreements commencing May 27, 1982, and to direct the Attorney to prepare the necessary contract amendment for execution by the HRA Chairman and Executive Director following action by the City Council. All voted in favor and the motion carried. REVIEW OF 1981 FINANCIAL AUDIT REPORT Martin presented a brief overview of the year -end status of the HRA's active funds, as audited by DELAHUNT VOTO AND COMPANY, LTD., Certified Public Accountants. He also reviewed the auditor's recommendations relative to HRA funds, as contained in their "Management Report and Recommendations" dated December 31, 1981. Bohn and Whitehill expressed concern about the Auditor's recom- mendation regarding the receipt of tax increment revenues from the State and County. Both Commissioners felt that the current system which provides for the payment of tax increment monies directly to the HRA includes adequate safeguards to the City, since the City Council approves the expenditure of tax incre- ment funds when approving any Bond Issue and Redevelopment Plan. In fact, all HRA expenditures are authorized by the City well in advance of specific obligations being made by the HRA. Page 5 - HRA Minutes - May 20, 1982 Martin suggested that this issue be more fully discussed during the next few months as the 1983 Budget is being prepared. The Commissioners agreed with this suggestion and noted their review of the Audit Report for the record. APPROVAL OF BILLS Whitehill moved, seconded by Horn, approval of the bills as listed on the HRA Accounts Payable dated April 19, 1982 and May 17, 1982. All voted in favor and the motion carried. OLD BUSINESS: HUBER PROPERTY ACQUISITION (PARCEL 926) Martin advised the HRA that John Huber had contacted him by telephone last week and offered to sell his property to the HRA for the reappraised value of $154,000, if the HRA would accept his offer within the next 30 days. Martin noted that Huber had ordered his own appraisal of this property (up to $300 of which must be paid for by the HRA), but that he had not yet seen a copy of Huber's appraisal. Martin suggested that no action be taken by the HRA until Russ Larson and he had an opportunity to review Huber's appraisal and until Huber's offer to sell was submitted in writing. The Commissioner's agreed with this suggestion and directed Martin to secure a copy of Huber's appraisal before any reimbursement is made to cover the cost of the appraisal. The HRA also directed the Attorney to meet with Huber to see if acceptable terms for acquisition of his pro- perty could be worked out prior to the next HRA meeting. ADJOURNMENT Bohn moved, seconded by Horn, to adjourn the meeting at 9:30 p.m. All voted in favor and the meeting was adjourned. CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY Iml 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317 (612) 937 -1900 MEMORANDUM TO: Chanhassen HRA FROM: Scott A. Martin, Executive Director DATE: August 13, 1982 SUBJ: Election of Officers According to the HRA Bylaws, the Chairman, Vice - Chairman, and Secretary of the Authority are elected to one -year terms. Since the bylaws establish the June meeting as the annual meeting, and since the June meeting was canceled, election of officers should be conducted at the August 19, 1982 meeting. A copy of the adopted HRA bylaws is attached for your reference. BY -LAWS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF CHANHASSEN, MINNESOTA ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "Housing and Redevelopment Authority of Chanhassen, Minnesota." Section 2. Seal of Authority. The seal of the Authority shall be in the form of a circle and shall bear the name of the Authority and the year of its organization. Section 3. Office of Authority. The offices of the Authority shall be at City Hall in the City of Chanhassen, State of Minnesota, but the Authority may hold its meetings at such other place or places as it may designate by resolution. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Authority shall be a Chairman, a Vice - Chairman, and a Secretary. Section 2. Chairman. The Chairman shall preside at all meetings of the Authority. Except as otherwise authorized by resolution of the Authority, the Chairman shall sign all contracts, deeds, and other instruments made by the Authority. At each meeting, the Chairman shall submit such recommendations and information as he may consider proper concerning the business, affairs and policies of the Authority. Section 3. Vice - Chairman. The Vice- Chairman shall perform the duties of the Chairman in the absence or incapacity of the Chairman; and in case of the resignation or death of the Chairman, the Vice - Chairman shall perform such duties as are imposed on the Chairman until such time as the Authority shall select a new Chairman. Section 4. Secretary. The Secretary shall perform the duties of a Secretary for the Authority. Section 5. Executive Director. The Authority shall employ an Executive Director who shall have general supervision over the adminis- tration of its business and affairs, subject to the direction of the Authority. He shall be charged with the management of the housing projects of the Authority. As assistant to the Secretary, the Executive Director in his own name and title shall keep the records of the Authority, shall act as Secretary of the meetings of the Authority and record all votes, and shall keep a record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to his office. He shall keep in safe custody the seal of the authority and shall have power to affix such seal to all contracts and instruments authorized to be executed by the Authority. -1- He shall have the care and custody of all funds of the Authority and shall deposit the same in the name of the Authority in such bank or banks as the Authority may select. The Treasurer for the Authority shall siqn all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Authority. Except as otherwise authorized by resolution of the Authority, all such orders and checks shall be counter - signed by the Chairman. He shall keep regular books of accounts showing receipts and expenditures and shall render to the Authority, at each regular meeting (or more often when requested), an account of his transactions and also of the financial condition of the Authority. He shall give such bond for the faithful performance of his duties as the Authority may determine. The compensation of the Executive Director shall be determined by the Authority. Section 6. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Authority or the by -laws or rules and regulations of the Authority. Section 7. Election or Appointment. The Chairman, Vice - Chairman and Secretary shall be elected at the annual meeting of the Authority from among the Commissioners of the Authority, and shall hold office for one year or until their successors are elected and qualified. The Executive Director shall be appointed by the Authority. Any person appointed to fill the office of Executive Director, or any vacancy therein, shall have such term as the Authority fixes, but no Commissioner of the Authority shall be eligible to this office. Section 8. Vacancies. Should the office of Chairman, Vice - Chairman or Secretary become vacant, the Authority shall elect a successor from its membership at the next regular meeting, and such election shall be for the unexpired term of said office. When the office of Executive Director becomes vacant, the Authority shall appoint a successor, as aforesaid. Section 9. Additional Personnel. The Authority may from time to time employ such personnel as it deems necessary to exercise its powers, duties and functions as prescribed by the Municipal Housing and Redevelopment Law of Minnesota applicable thereto. The selection and compensation of such personnel (including the Executive Director) shall be determined by the Authority subject to the laws of the State of Minnesota. -2- ARTICLE III - MEETINGS' Section 1. Annual Meeting. The annual meeting of the Authority shall be held on the 3rd Thursday of June at Chanhassen City Hall, the regular meeting place of the Authority, at 7:30 o'clock P.M. In the event such date shall fall on a legal holiday, the annual meeting shall be held on the next succeeding secular day. Section 2. Regular Meetings. Monthly meetings shall be held without notice at the regular meeting place of the Authority on the 3rd Thursday of each month, at 7:30 o'clock P.M., unless the same shall be a legal holiday, in which event said meeting shall be held on the next succeeding secular day. Section 3. Special Meetings. Special meetings of the Authority may be called by the Chairman, or two members of the Authority for the purpose of transacting any business designated in the call. The call for a special meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Authority or may be mailed to the business or home address of each member of the Authority at least two (2) days prior to the date of such special meeting. At such special meeting, no business shall be considered other than as designated in the call, but if all of the members of the Authority are present at a special meeting, any and all business may be transacted at such special meeting. Section 4. Quorum. The powers of the Authority shall be vested in the Commissioners thereof in office from time to time. Three Commissioners shall constitute a quorum for the purpose of conducting its business and exercising its powers and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the Authority upon a vote of a majority of the Commissioners present. Section 5. Order of Business. At the regular meetings of the Authority the following shall be the order of business: 1. Roll call. 2. Reading and approval of the minutes of the previous meeting. 3. Bills and communications. 4. Report of the Executive Director. 5. Reports of Committees. 6. Unfinished business. 7. New business. 8. Adjournment. All resolutions shall be in writing and shall be copied in the journal of the proceedings of the Authority. Section 6. Manner of Votin . The voting on all questions coming - before the Authority shall be by roll call, and the yeas and nays shall be entered upon the minutes of such meeting. -3- ARTICLE IV - AMENDMENTS Amendments to By -Laws. The by -laws of the Authority shall be amended only with the approval of at least three of the members of the Authority at a regular or a special meeting. The undersigned, Donald W. Ashworth, Executive Director of the Housing and Redevelopment Authority of Chanhassen, Minnesota, hereby certifies that the foregoing by -laws were adopted as the complete by -laws of said Authority at a duly called meeting of the Commissioners of said Authority on the 14th day of Novemm r, 1978. Donal W. Ashworth Executive Director The undersigned, Scott A. Martin, Executive Director of the Housing and Redevelopment Authority of Chanhassen, Minnesota, hereby certifies that the foregoing by -laws were amended as to Section 2, Regular Meetings at a duly called meeting of the Commissioners of said Authority on the 21st day of May, 1981. _ �(A t N Scott A. Martin Executive Director -4- 4 a., CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 a 1 (61 2) 937 -1900 MEMORANDUM TO: Chanhassen HRA FROM: Scott A. Martin, Executive Director DATE: August 13, 1982 SUBJ: Purchase Option Agreement for Chanhassen Tire and Auto The Purchase Option Agreement dated December 3, 1981 that the HRA acquired for the Havlik Property provides for the expiration -of the option effective September 1, 1982 unless the BRA elects to exercise the option by acquiring the property or unless the option is extended in accordance with the agreement. Since outright acquisition is not feasible due to the lack of available funding, the HRA should decide whether or not to extend the option for the period from September 1 to December 1, 1982. Each 3 -month option term extension period requires the HRA to pay the Seller $500. If the option is ultimately exercised by the HRA, all option monies will be applied to the purchase price as a partial prepayment. The Option Agreement also provides for a "purchase price adjustment" in the event the HRA elects to extend the option term after September 1, 1982. This provision requires the HRA to reappraise the land and buildings in order to determine any adjustment in the negotiated purchase price of $235,105. A copy of the original appraisal summary prepared by the City Attorney and a copy of the reappraisal (dated August 9, 1982) is attached for your reference. The new appraisal indicates that the land and - building Jhas a current fair market value of $180,000# which is an increase of $15,000 over the March 26, 1980 appraisal ($165;000). Therefore, the purchase price should be adjusted to a total of $250,105, in accordance with the option agreement. Recommendation I recommend extending the option for the first 3 -month extension period and adjusting the purchase price to be consistent with the above figures. This option period is consistent with the extended Redeveloper Agreements with Kraus - Anderson and Bloomberg Companies, which are due to expire on November 27, 1982 if no further action is taken. ATTACHMENTS 1. Original Appraisal summary from City Attorney dated 11 -3 -80. 2. Copy of August 9, 1982 Appraisal prepared by Lyle H. Nagell & Co., Inc. 3. Excerpts from Purchase Option Agreement. 4. Minutes of September 10, 1981 HRA meeting. 44- 4W" F 1 4"�>, r-} u • , SJ LARSON & HERTZ ATTORNEYS AT LAW 1900 IIRST BARK RLACE WEST RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA SS402 TELEPHONE CRAIG M. MCRTZ (612) 333 -9563 November 3, 1980 Of COUNSEL HARVEY E. SKAAR MARK C.MCCULL000N Chanhassen City Council Chanhassen Housing & Redevelopment Authority Chanhassen, Minnesota 55317 Re: Downtown Redevelopment Project Chanhassen Tire & Auto Parcel 30 Dear Council Members, We present herewith the following detailed appraisals of value relative to the proposed acquisition of this business as part of the above project. These appraisals are summarized as follows: Land and building $165,000 Immovable equipment 25,605 Relocation 10,000 Total Very ytruly r $200,605 RUSSELL H. LARSON Chanhassen City Attorney RHL:ner /� n` jQ m enc �A04 Wl Ann OPTION TO PURCa \SE P \L EST \TE QQ Option Agreement :jade this � day of �.cr �• -,. 1981, by and between John M. Havlik, Jr., and Loretta C. Havlik, his wife, Owners and Seller(s)- Optionor(s) (collectively the "Seller "), and The housing and Redevelopment Authority in and for the City of Chanhassen, a public body corporate and politic, - - - _ Buyer - Optionee ( "Buyer "). �. -.: - - - -- WITNESSETH: - _ "- - WHEREAS, Seller is the owner of that certain real estate described in paragraph '1 below (the "Subject Property "); and WHEREAS, Buyer has approved a redevelopment plan within which Sellers' property has been designated to be acquired by the ., exercise of eminent domain unless a direct purchase is negotiated in lieu of eminent domain; and ^ - WHEREAS, Buyer may desire to acquire the Subject Property to own in fee simple for redevelopment purposes; and -�" WHEREAS, Seller desires to grant to Buyer an option to purchase the Subject Property; NOW, THEREFORE, the parties hereto hereby agree as follows: Grant of Option and Option Price. That in consideration - - -- --- .•.-- - -•• -- of the mutual agreements herein contained and the sum of Twenty -three Thousand Five Hundred Ten and 50 /100ths Dollars ($23,510,50) ( "Option - _ Price ") paid by the Buyer, the Seller hereby grants unto the Buyer - I the exclusive right at Buyer's option to purchase the following tract - or parcel of land (Subject Property) situated in the County of Carver, State of Minnesota, to -wit: ` -. - ^'- -' "T - °-• • -`• See Exhibit "A" hereto attached for legal - description of subject property. 2• Release of Escrow. The Seller shall order for delivery to - _ - the Buyer, simultaneously with the signing of this Agreement, an -- - abstract of title or a registered property abstract and all - -' unrecorded instruments relating to interests in the Subject ''- Property and showing title thereof in the Seller. The Buyer - -- _- -, shall have such abstract or registered property abstract updated, at its own expense, the cost thereof to be reimbursed by the Seller - in the event the option herein granted is exercised. Upon receipt y. ix - S • rt•..yY of an updated abstract or registered property abstract the Buyer shall have twenty (20) days within which to determine whether the Seller possesses marketable title, after which time the abstract shall be returned to the Seller. If marketable title is found or Buyer, in its opinion, determines that title can be rendered marketable, the Option Price with interest, if any, shall be released from escrow to the Seller and the parties hereto shall proceed in accordance with the terms and conditions of this Agreement. The Seller shall permit no additional encumbrances to.be made upon the Subject'Property after the date of this Agreement without.notice to the Buyer as provided in paragraph 5.below. In the event _title in the Seller is determined by the Buyer to be unmarketable or incapable of being rendered marketable, this Agreement, at Buyer's option, shall be null and void and the escrow amount, together with interest, if any, shall be refunded forthwith to the Buyer. 3. Option Term. This option may be exercised by the Buyer any time prior to and including September 1, 1982. _ 3.1 Option Term Extensions. ^^^^^^111111 a. The Buyer shall have the right, to be exercised at.any time prior to September 1 1982 to extend the within option to and including December 1 19 82 , (hereafter "option term extension period") by the payment to the Seller of Five Hundred and no /100ths Dollars ($500.00) as additional Option Price. b. Additionally, Buyer shall have the right,to be exercised at any time prior to the termination of any option term extension period,to extend the within option to and including March 1 , 19 83 , June 1 , 19 83 , and September 1 , 1983 , by the payment to the Seller of Five Hundred and no /100ths Dollars ($500.00) as Option Price for each additional option term extension period. -2- c. The Buyer shall exercise its right to extend the within option by signifying and declaring its election to extend the within option within the —' option term extension periods herein limited by written notice to Seller and payment of said additional option price by Buyer in accordance with paragraph 5 below, prior to the expiration of the option, or any additional option term '- extension period. 4. Exercise of Option. The Buyer-shall exercise its option by signifying and declaring its election to purchase the Subject Property by written notice to Seller by Buyer in accordance with - paragraph 5, below, prior. to the expiration of the option, or - any option term extension period. 5. Notice. Any notice, demand, request or other communication which may or shall be given or served to or on Seller by Buyer or to or on Buyer by Seller shall be deemed to have been given or served on the date the same is deposited in the United States mail, registered or certified, postage prepaid - - - and addressed as follows: - i - a) If to Seller John M. Havlik and Loretta C. Havlik 580 West 78th Street - - - Chanhassen, MN 55317 - b) If to Buyer: The Housing and Redevelopment Authority in and for the City of Chanhassen _- - c/o Scott A. Martin 690 Coulter Drive Chanhassen MN 55317 - _ 6. Purchase Price. The purchase price for th e Subject Property shall be Two Hundred Thirty -five Thousand One Hundred Five -' -' and no /100ths Dollars ($235,105.00) payable by check on the - ,�_::� Closing Date and the total Option Price paid shall be applied as a partial pre - payment of the purchase price thereof. The Buyer, _ - in its discretion and in partial payment of the purchase price, - may assume or take subject to any existing indebtedness encumbering - - - the Subject Property, in which case the cash to -be paid at the time of closing shall be reduced by the then remaining indebtedness. 6.1 ?urccase ?ricer ''ustment. [n the even"_ that _' e Buyer electp to extend the option term from and aft=er September L, 1982, . pursuant to the provisions of '3._ above, the Buyer shall have the land and buildings constituting the subject property re- appraise,: by an established appraiser of its choice for the purpose o� determining any appreciation in value of said subject property over and above tha negotiated price of $235,iu5 as set forth in 116 above. In the event that the re- appraisal of the subject property establishes.an apprc ciation in value over and above said negotiated price of $235,105, the purchase price payable as set forth in 116 above shall be adjusted to said appreciated value as established by the re- appraisal. Any adjustment of the purchase price established by the re- appraisal undertaken by the Buyer pursuant to the provisions of this 116.1 shall be applicable to all option term exter, sion periods subsequent to September 1, 1982. In no event, however, shall the purchase price -of the subjec promises be less than $235,105. , 7. Relocation Costs. In the event this option is exercised, the purchase price payable by Buyer to Seller pursuant to the pre= visions of 116 or 116.1 shall be inclusive of all relocation cost=_ payable to Seller pursuant to the provisions of Minnesota_ Statutes, Chapter 117, except as agreed upon should Seller relocate within the tax increment district. No relocation responsibility shall accrue to the Buyer before notice of the exercise of this option pursuant to 114 above. S. Non - Exercise of Option by Buyer. It is agreed that if the Buyer, or its assigns, shall fail to exercise this option during the option term, or any option term extension period, then the Buyer, or its assigns, shall forfeit to the Seller all sums heretofore paid and Buyer and Seller shall be discharged of all obligations herein contained. -4- -Chanhassen Housing and Redevelopment Authority Special Meeting September 10, 1981 Minutes Call to Order The meeting was called to order at 8:00 p.m. Present were Vice Chairman Whitehill and Commissioners Bohn and Russell. Absent was Gullickson and Horn. Excecutive Director Scott Martin and Attorney Russ Larson were also present. Horn arrived at 8:25 p.m. Approval of Minutes Bohn moved, seconded by Russell, to approve the minutes of the August 20, 1981 meeting as presented. All voted in favor and the motion carried. Havlik Property Acquisition (Parcel #30) John Havlik was present to request a clarification of the action taken by the HRA on December 18, 1980 when the appraised value of his property was adjusted from $200,605 to $246,105. At issue was the intent of the HRA when agreeing to adjust the appraised value. Attorney Larson interpreted the HRA's action to mean that the appraisal adjustment would be valid only if the Havlik business were relocated within the HRA tax increment district. Havlik believed that the adjustment was not related to rebuilding in the tax increment district. Havlik presented a review of the history of the acquisition negotia- tions with Larson. He added that he fully intends to rebuild in the tax increment district if the adjusted appraised value is agreed to by the HRA. Whitehill pointed out that Havlik's justification for the additional $45,500 over and above the original appraisal included $11,000 for additional costs to purchase land for a new building. He stated that a fair appraisal would be $235,105 ($246,105 less the $11,000 for land included in the justification presented by Havlik). Havlik pointed out that he is presently faced with land costs of $3.50 /sq. ft. He added that he may only be able to build a service repair garage with U -haul rentals, but without gasoline sales, due to costs of rebuilding a full gasoline service station. Russell asked if Havlik had a separate appraisal done for his property in order to substantiate his request for an increase in appraisal value. Havlik responded that he had not ordered such an appraisal. Commissioner Horn arrived at this point in the meeting. Bohn stated that he does not recall that the appraisal adjustment was tied directly to relocation within the district. Havlik said that he would not agree to rent his business from the HRA following acquisition. f� HRA Special Meeting September 10, 1981 Page 2 Larson suggested that he continue private negotiations with Havlik to attempt to resolve the remaining issues. No action was taken by the HRA on this issue at this time. Traffic Analysis Study for Highway 5 Intersections Russell moved, seconded by Whitehill, to authorize BRW, Inc. to conduct a traffic analysis study at a cost not to exceed $5,800 to determine if or when signalization of the Highway 5 /Co. Rd. 17 intersection is warranted due.to traffic safety considerations and traffic volumes. The traffic study should also include present and future traffic operations at Park Drive and old County Rd. 17. BRW shall use all data available from the Minnesota Department of Transportation and Carver County concerning recent traffic counts and roadway improvement plans when preparing the study. All voted in favor and the motion carried. Havlik Property Acquisition Russ Larson and John Havlik returned to the meeting at this time and presented a negotiated settlement for HRA consideration. Larson stated that Havlik agreed to enter into a purchase option agreement and relocation agreement with the HRA that provides for all of the following considerations: 1). The purchase price of the real estate and immovable equipment shall be $235,105. This is the total purchase price of the Havlik property to be paid by the HRA, regard- less of whether or not Havlik rebuilds within the tax increment district. 2). $11,000 in relocation expenses shall be paid by the HRA to Havlik if he rebuilds within the district in a way acceptable to the HRA. Havlik will also qualify for a 15% land cost credit based on the new site and new building cost if he rebuilds within the district. 3). Following HRA acquisition of the land and building, Havlik will pay monthly rental to the HRA during the time he occupies the property before relocating. The monthly rental rate shall be equivalent to one - twelfth (1/12) of the current year's real estate taxes due on the entire property. Havlik will also be responsible for paying in full all unpaid special assessments outstanding on the property as of the date of closing. Whitehill moved, seconded by Bohn, to accept the negotiated settlement as outlined above, and to direct the Attorney to draft the necessary legal documents immediately for Havlik's signature. All voted in favor and the motion carried. 46 CHANHASSEN HOUSING &'REDEVELOPMENT AUTHORITY 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 -u• (612) 937 -1900 MEMORANDUM - TO: Chanhassen HRA FROM: Scott A. Martin, Executive Director DATE: August 13, 1982 SUBJ: Purchase Option Agreement for Riviera Supper Club The Purchase Option Agreement dated December 14, 1981 that the HRA acquired for the Riviera Supper Club provides for the expiration of the option effective September 1, 1982 unless the HRA elects to exercise the option by acquiring the property or unless the option is extended in accordance with the agreement. Since outright acquisition is.not feasible due to the lack of available funding, the HRA should decide whether or not to extend the option for the period from September 1 to December 1, 1982. Each 3 -month option term extension period requires the HRA to pay the - Seller $5,000. If the option is ultimately exercised by the BRA, all option monies will be applied to the purchase price as a partial prepayment. The Option Agreement also provides for a "purchase price adjustment" in the event the HRA elects to extend the option term after September 1, 1982. This provision requires the HRA to reappraise the land and buildings in order to determine any adjustment in the negotiated purchase price of $391,606. A copy of the original appraisal summary prepared by the City Attorney and a copy of the reappraisal (dated August 9, 1982) is attached for your reference. � �r. The new appraisal indicates that the land and building has a current fair market value of $339,000, which is an increase of $14,000 over the March 26, 1980 appraisal ($325,000). Therefore, the purchase price should be adjusted to a total of $405,606, in accordance with the option agreement. - Recommendation I recommend extending the option for the first 3 -month extension period and adjusting the purchase price to be consistent with the above figures. This option period is consistent with the extended Redeveloper Agreements with Kraus - Anderson and Bloomberg Companies, which are due to expire on November 27, 1982 if no further action is taken. ATTACHMENTS 1. Original Appraisal summary from City Attorney dated 11 -3 -80. 2. Copy of August 9, 1982 Appraisal prepared by Lyle B. Nagell & Co., Inc. 3. Excerpts from Purchase Option Agreement. ,.iii "4 y' Y .%'- .r • ! � k °t'q �.y'; 1�� tiF'� y+4/1�_ r ... .. ., .. .. .,.. .. i :, - I5viw ✓+., �,- a.r,4..: 7 f.:.V .oifili,R.4a.. ,. 6- LARSON & MERTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402 CRAIG M. MERTZ Of COUNSEL November 3, 1980 HARVEY E. SKAAR MARK C. MCCULLOUGH Chanhassen City Council Chanhassen Housing & Redevelopment Authority Chanhassen, Minnesota 55317 Re: V� Downtown Redevelopment Project 45TOm Krueger, Riviera Club, Inc. Parcel 31 Dear Council Members, TELEPHONE (612) 335 -9565 We present herewith the following detailed appraisals of value relative to the proposed acquisition of this business as part of the above project. These appraisals are summarized as follows: Land and building $325,000 Immovable equipment 49,879 Relocation 16,727 Total $391,606 EJ I 11 RHL:ner enc I I I I Very truly yours, i RUSSELL H. LARSON Chanhassen City Attorney OPT:O',' TO IF:=C:7:%3- This Cot'-on ?.grccment made this day of, 1931, by and between Thomas J. Krueger and Mary Lou Krucqer, his wife, owners and Seller(s)-Optionor(s) (c011ectiveiv the "Seller") , and The Housing and Redevelopment Authority in' ani for the City of Chanhassen, a public body corporate aid politic, Buyer-Optionee ("Buyer"). WITNESSETH: WHEREAS, Seller is the owner of that certain real estate described in paragraph 1 below (the "Suliject Property"); and WHEREAS, Buyer has approved a redevelopment plan within which Sellers' property has been designated to be acquired by the exercise of eminent domain unless a direct purchase is negotiated in lieu of eminent domain; and WHEREAS, Buyer may desire to acquire the Subject Property to own in fee simple for redevelopment purposes; and WHEREAS, Seller desires to grant to Buyer an option to purchase the Subject Property; NOW, THEREFORE, the parties hereto hereby agree as follows: 1. Grant of Option and Option Price. That in consideration of the mutual agreements herein contained and the sum of Thirty-nine Thousand One Hundred Sixty and 60/100ths (Dollars)($39,160.60)("Option Price") paid by the Buyer, the Seller hereby grants unto the Buyer the exclusive right at Buyer's option to purchase the following tract or parcel of land (Subject Property) situated in the County of Carver, State of Minnesota, to-wit: See Exhibit "A" hereto attached for legal description of subject property. 2. Release of EScr,w. The Seller shall order for delivery to the Buyer, simultaneously with the signing of this Agreement, an abstract of title or a registered property abstract and all unrecorded instruments relating to interests in the Subject Property and showing title thereof in the Seller. The Buyer shall have such abstract or registered property abstract updated, at its own expense, the cost thereof to be reimbursed by the Seller in the event the option herein granted is exercised. Upon receipt of an updated abstract or registered property abstract the Buyer shall have twenty (2.0) days within which to determine whether the Seller possesses marketable title, after which time the abstract shall be returned to the Seller. If marketable title is found or Buyer, in its opinion, determines thattitle can be rendered marketable, the Option Price with interest, if any, shall be released from escrow to the Seller and the parties hereto shall proceed in accordance with the terms and conditions of this Agreement. The Seller shall permit no additional encumbrances to be made upon the Subject Property after the date of this Agreement without notice to the Buyer as- provided in paragraph 5 below. In the event title in the Seller is determined by the Buyer to be unmarketable or incapable of being rendered marketable, this Agreement, at Buyer's option, shall be null and void and the escrow amount, together with interest, if any, shall be refunded forthwith to the Buyer. 3. Option Term. This option may be exercised by the Buyer any time prior to and including September 1, 1982. 3.1 Option Term Extensions. a. The Buyer shall have the right, to be exercised at any time prior to September 1 1982 to extend the within option to and including December 1 19 82 (hereafter "option term extension period ") by the payment to the Seller of Five Thousand and no /100ths Dollars ($5000.00)as additional Option Price. b. Additionally, Buyer shall have the right,to be — exercised at any time prior to the termination of any option term extension period,to extend the within option to and including March 1 , 19 83 , June 1 , 19 83 , and September 1 1983 by the payment to the Seller of Five Thousand and no /100ths Dollars ($5000.00)as Option Price for each additional option term extension period. 6M . �r C. The Buyer shall exercise its right to extend the within option by signifying and declaring its election to extend the within option within the option term extension periods herein limited by written notice to Seller and payment of said additional option price by Buyer in accordance with paragraph 5 below, prior to the expiration of the option, or any additional option term extension period. 4. Exercise of option. The Buyer: shall exercise its option by signifying and declaring its election to purchase the Subject Property by written notice to Seller by Buyer in accordance with paragraph 5, below, prior to the expiration of the option, or any option term extension period. Notice. Any notice, demand, request or other communication which may or shall be given or served to or on a Seller by Buyer or to or on Buyer by Seller shall be deemed to have been given or served on the date the same is deposited in the United States mail, registered or certified, postage prepaid and addressed as follows: a) If to Seller Thomas J. Krueger 560 West 78th Street Chanhassen MN 55317 b) If to Buyer: The Housing and Redevelopment Authority in and for the City of Chanhassen c/o Scott A. Martin 690 Coulter Drive Chanhassen MN 55317 6. Purchase Price. The purchase price for th e Subject Property shall be Three Hundred Ninety-one Thousand Six-Hundred Six and no/100ths Dollars ($391,606) payable by check on the Closing Date and the total Option Price paid shall be applied as a partial pre-payment of the purchase price thereof. The Buyer, in its discretion and in partial payment of the purchase price, may assume or take subject to any existing indebtedness encumbering the Subject Property, in which Case the cash to be paid at the time of closing shall be reduced by the then remaining indebtedness. �_:n ?-rc-ase Pr4 -cc A:!-Ustment. In t_.c Ven- Buyer elects to cztcnd the option term from and Ifter September 1, 1992, pursuant to the provisions of •3.1. above, the Buyer shall have the land and buildings constituting the subject property re-appraised by an established appraiser of its ch-ice for the purpose or determining any appreciation in value of said subject property c^er and above the negotiated price of $391, K as set forth in 16 above. In the event that the -e- appraisal of the subject property establishes an appr ciation in value over and above said negotiated price of $391,606 the purchase price payable as set forth in 116 above shall be adjusted to said appreciated value as established by the re-appraisal. Any adjustment o the purchase price established by the re-appraisal undertaken by the Buyer pursuant to the provisions of this 116.1 shall be applicable to all option term exte sion periods subsequent to September 1, 1982, In no event, however, shall the purchase price-of the subje� promises be less than $391,606. 7. Relocation Costs, In the event this option is exercised, the purchase price payable by Buyer to Seller pursuant to the pre- visions of $6 or 116.1 shall be inclusive of all relocation nests payable to Seller pursuant to the provisions of Minnesota Statutes, Z_ Chapter 117, except as agreed upon should Seller relocate within Tax Increment District No. 1. NO relocation resconsibility shall accrue to the Buyer before notice of.the exercise of this option pursuant to 114 above. 8. Non-Exercise of Option by Buyer. It is agreed that if the Buyer, or its assigns, shall fail to exercise this option during the option term, or any option term extension period, then the Buyer, or its assigns, shall forfeit to the Seller all sums heretofore paid and Buyer and Seller shall be discharged of all obligations herein contained. -4- u CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA SS317 U 101 (612) 937.1900 - MEMORANDUM TO: Chanhassen HRA - FROM: Scott A. Martin, Executive Director - DATE: August 13, 1982 SUBJ: Offer to Sell Cenex Station Representatives of Minnesota - Victoria Oil Company have contacted me within the past month concerning their interest in selling the' Chanhassen Cenex Service Station to the HRA in the immediate future. They have presented the attached written sale offer for your consideration at the August 19, 1982 meeting. _ f The HRA appraisal summary for this property is also attached for your reference. You should note that the July, 1980 appraisal consists of a total value of $85,620 for land, building and immovable equipment. The current offer to sell this property for $100,000 exceeds the appraised value, apparently based on an assumption by the owner that the property has appreciated by more than $14,000 during the last two (2) years. Prior to any ~ C acquisition, a new appraisal should be obtained in order to verify the current property value. This property lies within the second phase of the adopted Downtown Redevelopment Project Plan, with acquisition programmed for at least two (2) years from now, under the most optimistic conditions. Funding for such an acquisition would be provided by the bonds sold last August (1981). This bond fund has a current fund balance of approximately $200,000. However, $154,000 of this amount has been earmarked for future acquisition of the Huber property. Recommendation It is my feeling that acquisition of the Cenex Service Station would be premature, especially in light of the current uncertainty involving the Downtown Project construction start. HRA - Cenex Proposal August 13, 1982 Page 2 If purchased by the HRA, the building may sit vacant and unused for an indefinite period, thus increasing blight -in the downtown area. It would seem preferable to have the property sold to someone interested in operating a service station business. Attachments 1. Letter from Minnesota - Victoria Oil Company dated July 23, 1982. 2. Appraisal Summary letter from City Attorney dated November 3, _ 1980 n (f Y7. rY r c iisf" �r 1 .*Y�� C"Wwr i w r ' Y' �' � rF .a` ��jyy`�' ✓S AJ r v{� � S ,A•�,_,y� l.r .. y+,'11 YuAbei rr«• ....i`b �. »..�.AS:�.L...r.i.F:...au.A r �•.^•. �% MINNESOTA - VICTORIA OIL COMPANY City of Chanhassen Chanhassen, Pon 55317 Attention: Mr. Scott Martin Where the customer is the company Victoria, Minnesota 55386 Victoria Phone 443 -2161 July 23, 1982 The Board of Directors of Minnesota Victoria Oil Company at the meeting held, July 21, 1982, have passed the following; The Cenex Station at Chanhassen, Minnesota be offered for sale at a figure of $1009000.00. The terms of the sale are, one —third dome payment and a six year Contract for Deed carried at 12% per annum. Robert P. Notermann Secretary Minnesota Victoria Oil Company CITY OF CHANHASSEN PF'r -EIVED A06 10'x` COMMUNITY DEVELOPMENT DEPT. r RUSSELL M. LARSON CRAIG M. MERTZ O! COV Nv�CI HARVEY E. SKAAR MARK C. MCGULLOUGM LARSON & METRTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST MINNEAPOLIS, MINNESOTA 55402 November 3, 1980 Chanhassen City Council Chanhassen Housing & Redevelopment Authority Chanhassen, Minnesota 55317 TELEPHONE (612) 335 -0565 Re: 'Downtown Redevelopment Project Minnesota Victoria Oil Co. dba Cenex Parcel 40 - Dear Council Members, We present herewith the following detailed appraisals of value relative to the proposed acquisition of this business as part of the above project. These appraisals are summarized as follows: Land and building $60,000 Immovable equipment 25,620 Relocation 3,500 Total $89,120 'Ve t my y s� _.r s-� RUSSELL H. LARSON Chanhassen City Attorney _ RHL:ner% �„ qc� enc 1 f 1� t@�'IOLGL. at, 6t3(, J l 0�. CHANHASSEN HOUSING & REDEVELOPMENT AUTHORITY '-, 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN. MINNESOTA 55317 r ,u• (612) 937 -1900 MEMORANDUM TO: Chanhassen Housing and Redevelopment Authority FROM: Scott A. Martin, Executive Director �v \ DATE: August 13, 1982 SUBJ: Proposed 1983 Operating Budget Attached for your review and approval is my proposed 1983 HRA operating budget. Of special note is the substantial increase in estimated 1982 revenues over the original budgeted amount, which is due to significant increases in assessed valuation for many properties in µ the tax increment district. ,1983 Tax Increment Revenue projec- tions are also based on significant increases in assessed valuation for 1982 for those properties not reassessed in 1981. Consequently, the District's revenue picture looks very healthly. In terms of 1983 expenses, I have been able to reduce total current expenditures to a level below that budgeted for 1982, but slightly above my revised year -end estimate. The elimination of an administrative aide position earlier this year allows us to hold the line in the area of personnel service costs, as the HRA had provided funding for 258 of that position. A proposed break- down of city staff posit; ions to be partially funded by the HRA in 1983 is attached for your reference. You should also note that this budget proposal includes my recom- mendation to revise the 1982 budget to provide for full payment of the HRA's special assessment reduction program obligations - under the Dayco Concrete and Fluoroware agreements. This is possible because of .the excess revenues anticipated in the fund. Prepayment will eliminate interest expenses charged on special Assessments if annual installments are paid. Finally, you will note that the projected fund balance is nearly $200,000 at the end of 1983, in addition to the $100,000 reserve r required to cover any potential short -fall in the Bond Debt Service Fund. This fund balance compares favorably with the $88,000 fund balance existing at the beginning of 1982. HRA - 1983 Budget August 13, 1982 Page 2 If the BRA finds this budget proposal acceptable, a resolution approving the budget should be adopted at your August. =19, 1982 meeting. City Council action is anticipated sometime during September. Attachments 1. Proposed 1983 Operating Budget. 2. Proposed Staff Salary and Benefit Funding } 1 Y3 • P als' i `i aka i r sr SscR a 1 Su . .. • . e4a. 6r.... i+i .... A. ♦. a.. w.nn nNaL -nM • n w.:���`. CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY - PROPOSED 1983 OPERATING BUDGET FUND 460 - 1981 1982 1982 1983 ,-. Actual Budgeted Estimated Budget REVENUE: Tax Increment Receipts $ 160,996 $ 258,000 $ 335,000 $ 464,000 Interest on Investments 2,650 3,000 15,000 33,500 - Total Revenue 163,646 261,000 350,000 497,500 EXPENDITURES: Current: Personnel Services 12,326 41,695 42,565 42,420 Materials 8 Supplies 280 450 300 500 Contractual Services 7,885 35,200 30,000 32,800 Capital Outlay 27,000 0 0 0 �. Total Expenditures 47,491 77,345 72,865 75,720 OTHER (Decreases): Transfer to Fund 9306 0 O 0 340,000 (1981 Tax Increment Bond Debt Fund) Transfer to Special Assessment Funds 0 0 104,150* 0 - Transfer to General Fund 7,500 0 0 0 Reimbursement of Interest @ Trunk Unit Charges Paid Under Special Assessment 0 0 14,050* 30,650 ** Reduction Program Fund Balance - January 1: (12,954) 81,419 88,257 247,192 Less Required Reserve - _ _ 100,000 Fund Balance - December 31: 88,257 - - 198,322 * Provides for full prepayment of Dayco Concrete and Fluoroware Special Assessment Reduction Agreement Obligations ** Provides for reimbursement to United Mailing as per special assessment reduction agreement. CITY STAFF SALARIES AND BENEFITS PARTIALLY FUNDED BY CHANHASSEN HRA (As Per Proposed 1983 Operating Budget) NAME OF STAFF MEMBER Scott Martin Rebecca Foreman Don Ashworth Kay Klingelhutz Mary Jean Meuwissen PERCENT POSITION TITLE HRA FUNDED HRA Executive Director/ Community Development Dir, 75% Planning Secretary -25% City Manager 121% City Treasurer 10% Senior Account Clerk 10% RUSSELL H. LARSON CRAIG M. MERTZ OF COUNSEL HARVEY E. SKAAR MARK C. McCULLOUGH Scott A. Martin Executive Director Chanhassen IiRA Box 147 Chanhassen MN 55317 Dear Scott: LARSON 8C MBnTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST MINNEAPOLIS, MINNESOTA 55402 August 9, 1982 TELEPHONE (612) 333 -1511 Re: United Mailing Assessment Agreement The assessment agreement for United Mailing was tendered to the Housing and Redevelopment Authority on July 27, 1982, for signature. Bill Gullickson signed the assessment agreement on behalf of the Authority. Don Ashworth also signed the assessment agreement on your behalf. I ask that you submit the two enclosed resolutions to the Authority T at its next meeting. The first resolution ratifies Don's action. —A $ The second resolution officially appoints Don as Deputy Executive Director to act in your absence. --# %?- i© CMM:ner enc Vetruly yours, CRAIG M. MERTZ �. Assistant Chanhassen City Attorney CITY OF CHANHASSEN AUG 1092 COMMUNITY DEVELOPMENT DEPT. CITY OF CHANHASSEN HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION Dated: Resolution-No. 82 -9 - Motion by Commissioner Seconded by Commissioner RESOLUTION RATIFYING EXECUTION OF ASSESSMENT AGREEMENT WHEREAS, this Authority by its Resolution No. 82 -7 dated May 20, 1982, authorized the Chairman and Executive Director of this Authority to execute on behalf of the Authority an assessment agreement for the so- called United Mailing facility; and WHEREAS, the Redevelopers (Frank A. Beddor, Marilyn A. Beddor, and Julianna M. Carlson) tendered said assessment agreement to the Authority on July 27, 1982, for execution by the Authority; and WHEREAS, Scott A. Martin, Executive Director, of this Authority, was absent from the State of Minnesota at that time; Donald W. Ashworth, Chanhassen City Manager, executed said assessment agreement on behalf of the Executive Director on July 28, 1982. NOW, THEREFORE, BE IT RESOLVED, by the Commissioners of the Housing and Redevelopment Authority of Chanhassen, Minnesota, that they hereby ratify and confirm the execution of said assessment agreement by said Donald W. Ashworth, on behalf of this Authority. Passed and adopted this day of 1982. _ Chairman Attest: Scott A. Martin Executive Director Yes No Absent _ CITY OF CHANHASSEN• HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION Dated: Resolution No. 82 -10 Motion By Commissioner Seconded by Commissioner RESOLUTION APPOINTING DEPUTY DIRECTOR BE IT RESOLVED, by the Commissioners of the Housing and Redevelopment Authority that Don W. Ashworth be appointed as Deputy Executive Director of this Authority, with this appointment to be effective retroactive to July 26, 1982; in the event of the absence or disability of the Executive Director, the Deputy Executive Director shall succeed to the duties and powers of the Executive Director. Passed and adopted this day of 1982. Chairman Attest: Scott A. Martin Executive Director . Yes No Absent L jLH0f _ ]EN f a. A I U 1 S IV A - IE ' - -- ITE C ^� -8p -- IE ` CHFCK• A IN A 11 N T C, A T N A u T o u v e n I a. 4 V r r ✓ r 017802 48.00 DALE GREEN CO FEES, - SERVICE .1 z k4I -_— _.0.17603 -__�.. 67 TR0-Nf IER- LuAeLrR FEES —. SEViO 6 017804 1,857.90 LARSON t MERTZ FEES, CONSULTING G 7 6 017805 7.98 ROSANNE GREGORY FEES, SERVICE m 01-7�f(8 6 80. 00 EARL HOL c �---bN INC F EET, - - - --- u ,3 5 2,013.55 CHECKS NRITTEN s I'L:I TOTAL OF 6 CHECKS TOTAL 39.857.88 1 20 {s z2 20 1211 .31 �j 3C 24 25 3, 12> d „I I 33 3. c5 13� 46 del 33 iGG1 7 41 47 i8 -- _ X501 g� 53 �vE 1 �MANnAS.S,EN Hr,. A._G..6.10,U_N_IIS ,P A.1Y A_"IE . DARE 07- �1- 82EAfE f ,, '',. PRINTING AND PUBLISHING '" ^ - CHECK* A M O U N T C L A I M A N T P U R P O S E - 9 W FEES, SFRyICE ' J r .I 017902 34.55 .:. CARVER COUNTY HERALD ,, '',. PRINTING AND PUBLISHING '" ^ - D �•fflOR 9 OINAYFa MANAGEMENT FEES, SFRyICE ' 017904 415.80 LARSON t MERTZ 6 FEES, CONSULTING - - J 3 ! 485.15 ' CHECKS WRITTEN to I I 12 13 TOTAL OF 3 f.HFf.K S. IOTAL 485.15 3 \ IS IS 19 21 I] IB 22 2a1 20 21 i5 r: t. 23 za I 1rJ 26 2J \3 3.f. 29 �i 1 \1 30 31 f �I32 33 �2 9� 38 X61 33 I �l S �, 61 82 95 <J 61 62. SD 51 63 9G r .I 7 LARSON & ME'RTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402 TELEPHONE CRAIG M. MERTZ (612) 333- 1511 OF COUNSEL June 7, 1982 HARVEY E. SKAAR - MARK C. MCCULLOUGH Chanhassen HRA c/o Scott A. Martin Executive Director Box 147 Chanhassen MN 55317 To professional services rendered in May, 1982, as follows: HRA General Legal 4/29 two telcons w /Jay Bennett and SAM re; status of Fluoroware participation in preparation for 5/20 HRA meeting; 5/4 reminder letter to Jay Bennett (Fluoroware) re need to return signed — assessment agreements; 5/5 draft 2nd addendum to assessment agreement re late penalties on taxes re Fluoroware; telcon w /SAM re same and corres to SAM re same; 5/5 review corres from assessor re United Mailing 4 -year phase -in of market value; review HRA resolution and Chap 273 relative to establishment of 7% program; draft revised certificate for assessor to sign; draft approving resolution; draft addendum to assessment agreement; corres to SAM; — telcon w /Co. Assessor re the values in his memo of 4/28/82; 5/5 corres to SAM re procedure for extending expiration dates on redeveloper agreement; 5/6 telcon to McRostie re extension of HRA contracts; review 1982 audit report as per request of DWA; 5 /11 draft revised pages 4, 8, 8a and 14 to standard form assessment agreement per direction of SAM; draft cover resolution and cover letter and separate letters re corresponding changes needed in Fluoroware, Dayco, and United Mailing agreements; 5/14 check statutes on taxable status of HRA property; locate file on Sorensen acquisition; telcon w /linter re same and attempt to call — Rich Stolz re same; 5/18 corres to SAM re procedural documents which must be prepared to complete appointment of Tim Russell; 5/19 research in MSA re when tax exempt status is triggered for — HRA -owned property and telcon w /Zinter re same; 5/20 prep for tonight's HRA meeting on Fluoroware, United Mailing, and Dayco; attend regular HRA meeting; 5/24 revise master pages of master form of assessment agreement of HRA per action of 5/20; draft resolution of 5/20 approving new pages; draft revised addendum to Dayco contract and draft approved resolution as approved by HRA and corres re same to SAM; 5/25 telcon w /Auditor to confirm that 1982 taxes on Sorensen property had been abated per earlier telcon and corres to auditor re same; corres to SAM re status of Schoenecker appeal which is challenging assessments in Chan Lakes Business Park; 5/25 finish approving resolution for Fluoroware and N. e Chanhassen HRA c/o Scott A. Martin June 7, 1982 Page Two HRA General Leaal - contd. United Mailing and revision to addenda to two assessment agreements re same; telcon w /Jay Bennett's.office re penalty; corres to Jay Bennett, corres to SAM; two telcons w /SAM re United Mailing and Fluoroware; 5/26 conf w /BW re location of United Mailing building; examine hard shell plat; revise resolution and addendum accordingly; two telcons w /Jules Smith re ownership patterns; 5/27 proof of documents for master contract, Fluoroware, United Mailing, Dayco and supporting resolutions, corres to Fluoroware, United Mailing and Dayco; assemble copies of contracts to be signed: Attorney time: 28.15 hours: b K. $1,857.90 C A _\Gb -1 I declare, under the penalties of perjury, that the above im is just and correct and that no part thereof has been paid. RUSSELL H. LARSON Chanhassen HRA Attorney RHL:ner cc: All Council Members Kay Klingelhutz LARSON & MERTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST RUSSELL H. LARSON MINNEAPOLIS, MINNESOTA 55402 TELEPHONE CRAIG M. MERTZ p (612) 333 -1511 OF COUNSEL July 1, 1982 HARVEY E. SKAAR MARK C. MCCULLOUGH Chanhassen HRA C/O Scott A. Martin Executive Director Box 147 Chanhassen Minnesota 55317 _ To professional services rendered in May, 1982, as follows: HRA General Legal 6/1 Telcon with Stolz and with SAM re status of Instant Web Building for payable 1983 taxes and corres to auditor re same;6 /2 Telcon from SAM re United mailing contract; Review Chapters 272, 462, 273 re tax- able status of Instant Web property; Order copy of attorney general opinion; Telcon with Co. attorney re same; memo to SAM re same; 6/10 Telcon with Auditor re not attending Board of Review Meeting re 1.8 Million estimated market value for Instant Web Building and dictate letter to SAM re same; 6/11 Meet with SAM re taxable status of Instant Web Building; 6/14 Telcon with Jim Neher of Attorney General Office re trigger date on which Web Building must be vacant if no '.83 taxes are to be payable in 1983; Corres to Stolz and Martin re taxable states of Instant Web Building; 6/15 Telcon with Jim Neher of Attorney Gen- eral Office re taxable status of Web Building for payable '83 taxes; Telcon with Co. Attorney Ballou and Dorothy McClung of Attorne eral Office and SAM re taxable status of Web Building: Attorney time: 6.3 hours: 5.80 I declare, under the penalties of perjury, that the above claim is just and correct and that no part thereo een paid. RUSSELL H. CARSON Chanhassen HRA Attorney RHL:ccc cc: All Council Members Kay Klingelhutz RUSSELL H. LARSON r- CRAIG M. MERTZ OF COUNSEL HARVEY E. 9KAAR r MARK C. MCCULLOVGH Chanhassen HRA - c/o Scott A. Martin Executive Director Box 147 s Chanhassen MN 55317 LARSON & MERTZ ATTORNEYS AT LAW 1900 FIRST BANK PLACE WEST MINNEAPOLIS, MINNESOTA 55402 August 6, 1982 To professional services rendered in July, 1982, as Riviera Acquisition 7/9 conference w /Bill Wolfe of Lyle H. Nagell and Co., re re- appraisal per SAM OK: 0.5 hours: Chanhassen Tire & Auto Acquisition 7/9 Conf w /Bill Wolfe of Lyle H. Nagel & Co. re re- appraisal per SAM OK: 0.5 hours: HRA General Legal TELEPHONE (612) 333 -1511 $ 33.00 33.00 7/23 Conf w /Jules Smith re signing and filing of assessment agreements for Park II; 7/26 telcon from Jules Smith re how to fill in blanks on 7% assessment agreement for United Mailing; 7/27 review file to verify that assessment agreement as tendered by United Mailing is properly assembled (proper pages) and check minutes re whether HRA chairman was authorized to sign the same and call Bill Gullickson to arrange the signing; 7/28 meet w /Bill Gullickson to sign assessment agreements and instructions to KE re doing new notary page for directors (46'��� signature: 1.9 hours: 125.40- &9,� 191.40 82.5 -iw 273.90 ��� TOTAL: $ Expense: Thomas & Graven Legal Services: TOTAL DUE: $ I declare, under the penalties of perjury, that the above claim is just and correct and that no part thereof has been paid. sen HRA RHL:ner lily MINNEAPOLIS CHEYENNE DENVER City of Chanhassen 7610 Laredo Drive Chanhassen, MN 55317 ATTN: Mr. Scott Martin INVOICE N? 31700 DATE: July 31, 1982 JOB NO: 18 -8003, 62 -8020 40 -8107 RE: Engineering /Planning /Surveying Services for Downtown Redevelopment Project as per Agreement Per Diem Services - Phase I Work Task 1.7 Period of July, 1982 Presentations regarding traffic study. Classification Hours Sr. Professional 3.00 Salary Cost - $64.38 Fee - $64.38 x 2.0 = $ 128.76 $'� /Bti CITY Of CHANHASSEN RECEIVED Auc 161@2 COMMUNITY DEVELOPMENT DEPT. j BATHER. RINGROSE, WOLSFELD, JARVIS, GARDNER. INC. 2829 UNIVERSITY AVE. S.E. MINNEAPOLIS, MN 55414 PHONE 61213M?878 LYLE H. NAGELL CO. Inc. 7515 WAYZATA BOULEVARD MINNEAPOLIS, MINNESOTA 55426 Telephone: 544 -8966 Larson and Mertz, Attorneys Attention: Mr. Russell Larson 1900 First National Bank Building Minneapolis, Minnesota 55402 N° 13955 August 12, 1982 Appraisal of Riviera Supper Club, 560 West 78th Street, Chanhassen $1,100.00 Appraisal of service station, 580 West 78th Street, Chanhassen 800.00 =$11900-w X04- 36� CITY OF CHANHASSEN ""'CEIVED au� g7 COMMUNITY DEVELOPMENT DEPT. 0