HRA 1981 08 20F►LE
AGENDA
Chanhassen Housing and Redevelopment Authority
Thursday, August 20, 1981
Chanhassen City Hall, 690 Coulter Drive
U2per Level Conference Room
7:30 p.m.
7:30 p.m. - 1. Call to Order.
2. Approve Minutes of July 23, 1981.
3. Report on Downtown Project Bond Sale.
4. Request by Mike Sorenson for Adjustment in
Property Appraisal (West 79th St. and Great
Plains Blvd.).
5. Discussion of Downtown Courtyard Sculpture
Competition.
6. Progress Report on Downtown Project Design
and-Engineering.
7. Old Business.
8. New Business.
9:00 p.m. - 9. Adjournment.
^" Chanhassen Housing and Redevelopment Authority Meeting
July 23, 1981
Minutes
Called to Order: The meeting was called to order at 7:50 p.m.
l Present were Chairman Gullickson, and Commissioners Horn and
Bohn. Russell arrived at 8:05 p.m. Absent was Whitehill.
Executive Director Scott Martin and Attorney Russ Larson were also
present.
AUUro"al'of Minutes: Horn moved, seconded by Bohn, to approve
�II the minutes of the June 18, 1981 minutes as presented. All voted
in favor and the motion carried.
r Bond Sale Status Report: Martin gave a brief status report on the
`I Downtown Project Bond Sale. City Bond Consultants have been
directed to negotiate with prospective investors for a 30 day
period commencing July 6, 1981. The City Council will call a
special meeting to sell the bonds once a low enough interest rate
to make the sale feasible is obtained.
The Commissioners supported the actions of the City Council to
do everything possible to' obtain an interest rate on tie bonds
that falls within the financial feasibility model for the down-
town project.
Bloomberg Home Center Project: The Commissioners discussed the
Attorney s Opinion datiid July 1, 1981, regarding the contractual
obligation that the City and HRA has to allow construction of
Bloomberg Company Home Center on their property lying just south-
west of the Ring Road. , They generally agreed that the Home Center
I� should be permitted on this site, but only with substantial,
I effective screening of all lumber storage areas and truck loading
areas.
Martin explained that this concern was already conveyed to Bob
l Davis, architect for Bloomberg Companies at a meeting held on
July 22, 1981. The HRA will have an opportunity to review plans
I- for the Home Center and all downtown core area construction prior
l to City reviews.
Horn felt that the Home Center should be allowed only if no out-
fitside storage was visable from public view and that only one such
development should be permitted within this zoning district.
Inflation Adjustment Policy: Bohn moved, seconded by Russell, to
retain all tie existing appraised values for properties to be
acquired for the downtown project based on information supplied
by the Director concerning the current commercial real estate
market in the Twin Cities Metro Area. The property appraisals
completed in 1980 by the Authority are still valid and represent
valuations that are more than fair for property owners affected by the
ll Redevelopment Project. The following land acquisition policy
shall apply to all negotiations:
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Chanhassen HRA Meeting
'July 23, 1981
Page 2
"If specific negotiations reach an impasse due to a significant
disagreement over the adjusted appraised value of certain properties,
staff will encourage the property owner to arrange for a second
certified appraisal of his property in order to help resolve such
differences. The property owner's appraiser must be certified to
conduct such an appraisal and said appraiser must be approved by
Staff prior to commencement of the appraisal. The property owner
will be reimbursed up to $300 (not to exceed the actual cost of the
appriasal) for the cost of such an appraisal, upon satisfactory
completion of the appraisal.
If minor adjustments to the HRA appraisal are necessary to reach
a negotiated settlement, Staff shall have the authority to use
its discretion in making such adjustments prior to presenting,
the negotiated settlement to the HRA for final acceptance and approval."
All voted in favor and the motion carried.
Sorenson Property Acquisition (Parcel #8): Russ Larson reported
on his negoti.ationswith Mike Sorenson for acquisition of his
vacant property located along the east side of Great Plains
Boulevard, just south of West 79th Street. A letter from Mr.
Sorenson (dated June 16, 1981) which itemized expenses he's
incurred for proposed development on his property was reviewed
by the Commissioners.
Ill Bohn moved, seconded by Horn, to reconfirm the action of June 18,
1981, and authorize the acquisition of the Sorenson property at
a cost not to exceed Uhe appraised value of $22,000. All voted
in favor and the motion carried.
Huber Property Acquisition (Parcel #26): Russ Larson updated the
Commissioners on his negotiations with John Huber.
` Horn moved, seconded by Bohn, to authorize the attorney to negotiate
for an option agreement for the purchase of the Huber property
at a cost not to exceed the appraised value of $185,000. All voted
in favor and the motion carried.
Havlik Property Acquisition (Parcel #30): Following an update on
the negoti tia ons wit Jo n Havli f�quisition of his property,
Russell moved, seconded by Horn, to hold firm at the adjusted
T appraised value of $246,105 for the Havlik property until September 1,
1981, after which time the Commissioners will reconsider their
action of December 18, 1980, and possibly make a downward adjustment
of the adjusted appraised value. An option agreement for the
purchase of the Havlik property should be diligently pursued by
the attorney immediately after the sale of the downtown project
bonds.
All voted in favor and the motion carried.
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�•^ Chanhassen HRA Meeting
( *> July 23, 1981
(� Page 3
U Riviera Property Acquisition (Parcel #31): Larson updated the
Commissioners on the status of acquisition negotiations with the
owners of the Riviera. The appraised value of $325,000 for land
and building, and total offer of $391,606 (including relocation
and equipment), is apparently acceptable to the owners.
The only major problem with this acquisition /relocation is finding
• suitable relocation site which is affordable to the Riviera for
• new facility.
Amendment to Instant Web Contract:
Bohn moved, seconded by Horn, approval of an amendment to Section
3.01 of the Contract for Acquisition and Development of Instant
Web, Inc. dated May 20, 1981, providing for the construction of
a minimum of 200,000 square feet of floor area in the new Instant
Web office /Manufacturing facility, instead of the original require -
ment that such building be 110,000 square feet and cost not less than
$3.1 million. All voted in favor and the motion carried.
Downtown Courtyard Sculpture: The Commissioners discssed the
Td—ea of-having-local scu ptor, Neal Dalen, create a sculpture for
the Downtown Courtyard. Gullickson suggested that the HRA sponsor
a contest for sculptor's from throughout Minnesota, with the
winner being commissioned to create a Courtyard sculpture. The
Commissioners generally supported this idea and asked Chairman
Gullickson to pursue it further with an art expert, and then
report back to the Commissioners at the August meeting.
New Business: Martin reported that the City Council approved the
Instant Web site plan on July 20, 1981.
He also reported that title abstract work was underway for the
properties to be acquired for the Downtown Project. BRW has also
been working with the telephone, gas, and electric companies in
planning for relocation of utilities in conjunction with ring -
road construction starting next spring.
A report on the status of the 1981 HRA operating budget was also
T presented. Expenditures from HRA funds through the first half of
the year are running well -below budget, with only 27 percent of
all funds expended as of June 30.
ji The deficit in the Ring -Road Improvement Project Fund has reached
l nearly $200,000, an increase of approximately $50,000 since
January 1, 1981. This fund will be replenished upon sale of the
l first bonds and receipt of bond proceeds.
Adjournment: There being no further business, the Chairman ad-
'r journe t e meeting at 9:45 p.m.
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Staff Report
CITY OF 3.
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690 COULTER DRIVE 0 P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
TO: Chanhassen HRA
FROM: Scott A. Martin, Executive
DATE: August 14, 1981
RE: Downtown Project Bond Sale
Director W
j^ I am pleased to report that the City Council authorized the initial
sale of General Obligation Tax Increment Bonds for implementation
of the Downtown Redevelopment Project on Thursday, August 13, 1981.
T The bonds were purchased at a net interest rate of 11.999% by a local
syndicate managed by Banc Northwest and First Bank Minneapolis. A
copy of the bid tabulation is attached.
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A copy of the Debt Service /Cash Flow Analysis prepared by Juran and
Moody, Inc. to test financial feasibility of the issue is also
attached. Please note that the budget for application of bond proceeds
was adjusted (with the approval of the City Council) by reducing the
land acquisition account by $100,000, and transferring -this money to
the debt service (capitalized interest) account. This transfer has
the effect of insuring that adequate funds will be available to make
all bond payments.
The impact of the transfer of $100,000 from the land acquisition account
is minimal, since adequate funds should still be available to secure
option agreements for the acquisition of the Huber, Havlik, and Riviera
Properties until the second (and final) bond issue is completed in
January or February of 1982.
Bond proceeds should be received in approximately 4 to 5 weeks
according to Juran and Moody. In the meantime, Russ Larson will
attempt to reach agreement with these three property owners for
presentation to the HRA on September 17, 1981.
TABULATION OF BIDS
MUNICIPALITY: City of Chanhassen, Minnesota DATE: August 13, 1981
ISSUE
MINIMUM BID : $4,625,000
BIDDERS:
GENERAL
BANC NORTHWEST /FIRST BANK MPLS., Mgr
American National Bank
Cronin & Marcotte, Inc.
Merrill Lynch White Weld
Capital Markets Grp.
John Nuveen & Co., Inc.
Dougherty Dawkins Strand & Yost
Moore Juran & Company, Inc.
M. H. Novick & Co., Inc.
In Association With
Dain Bosworth, Inc.) Jt. Managers
The First National Bank of St. Paul)
Allison Williams Company
Blyth Eastman Paine Webber Inc.
Piper, Jaffray & Hopwood, Inc.
Dean Witter Reynolds, Inc.
Robert W. Baird & Co., Inc.
Miller & Schroeder Municipals, Inc.
Robert S. C. Peterson, INc.
NCREMENT BONDS
Par Value
1 Purchase Price
$ 41715,000.00
$ 4,6311905.82
Total Interest Cost $ 7,932,594.18
Net Interest Rate $ 11.999%
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$4,715,000 General Obligation Tax Increment Bonds of 1981 Series A
Estimated Application of Bond Proceeds
A. Acquisition and relocation of
Instant Web, Inc.
B. Funds for earnest money options
and acquisitions for other properties
C. Engineering fees
0. Capitalized interest
E. Issuance expenses
F. Bond discount
G. Total Bond Issue
Debt Service /Cash Flow Analysis - Tax Increment with Instant Web at $5,0000000
Start Date: 8 -1 -81
{1) (2) (3) (4) (5)
August 13, 19x1
$3,500,000
400,000
200,000
500,000 co 1M
25,000
90,000
(6) (7) (8)
CUMMULATIVE
TOTAL
SURPLUS
PRINCIPAL
T
DATE
PRINCIPAL
COUPON
INTEREST
AND INTEREST
8 -1 -81
E -0-
COLUMN 5)
$500,000
$ -0-
8-1-82
-0-
$ 558,000
$ 558,000
8 -1 -83
-0-
( 32,252,00)
558,000
558,000
j�
B -1 -84
5,000
11.50%
558,000
563,000
8 -1 -85
10,000
11.50
557,425
567,425
`
8 -1 -86
25,000
11.50
556,275
581,275
8 -1 -87
50,000
11.50
553,400
603,400
738,297
8 -1 -88
75,000
11.50
547,650
622,650
B-1-89
125,000
11.50
539,025
664,025
848,967
8 -1 -90
175,000
11.50
524,650
699,650
B-1-91
225,000
11.50
504,525
729,525
973,434
B -1 -92
275,000
11.60
478,650
753,650
B -1 -93
350,000
11.60
446,750
796,750
r.
8 -1 -94
425,000
11.80
406,150
831,150
8 -1 -95
500,000
11.80
356,000
8561000
8 -1 -96
600,000
12.00
297,000
897,000
8 -1 -97
700,000
12.00
225,000
925,000
8 -1 -98
825,000
12.00
141,000
966,000
8 -1 -99
350,000
12.00
42,000
392,000
$4,715,000
$7,849,500
$12,564,500 ,
qualifications and Assumptions
Used in this Analysis
T
1.
The tax increment revenue
projections
used in this
expertise in
making such projections.
August 13, 19x1
$3,500,000
400,000
200,000
500,000 co 1M
25,000
90,000
(6) (7) (8)
$4,715,000
(9)
DEBT
SERVICE
COVERAGE
(PREVIOUS
YEAR
SURPLUS
PLUS
CURRENT
YEAR
REVENUE)
DIVIDED BY
COLUMN 5
NA
1.38X
.94X
.89X
.91X
.96X
L 02X
1. l OX
1.15X
1.20X
1.25X
1.32X
1.37X
1.42X
1.5OX
1.56X
1.64X
1.72X
3.61X
analysis were prepared by BRW, Inc., a company having
2. We have not made any projection of investment income realized from the capitalized interest, construction fund,
or the indicated annual surplus generated each year. It would seem reasonable to assume that any investment
income generated at any rate will only improve the financial feasibility of this project and its respective
financing.
3. The financing contemplated is subject to the unqualified approving opinion of bond counsel.
JURAN & MOODY, INC.
�I Andrew Kyle Merry
Vice President
1 1
CUMMULATIVE
CASH
SURPLUS
TAX
(COLUMN 6
CAPITALIZED
INCREMENT
AND 7 LESS
INTEREST
REVENUES
COLUMN 5)
$500,000
$ -0-
$ 500,000.00
271,898
213,898.00
' 311,850
( 32,252,00)
531,143
( 64,109.00)
580,461
( 51,073.00)
609,641
( 22,707.00)
639,881
13,774.00
671,454
62,578.00
704,204
102,757.00
738,297
141,404.00
773,756
185,635.00
810,674
242,659.00
848,967
294,876.00
888,815
352,541.00
930,332
426,873.00
973,434
503,307.00
1,018,301
596,608.00
1,064,952
695,560.00
1,113,483
1,417,043.00
$500,000
$13,481,543
$4,715,000
(9)
DEBT
SERVICE
COVERAGE
(PREVIOUS
YEAR
SURPLUS
PLUS
CURRENT
YEAR
REVENUE)
DIVIDED BY
COLUMN 5
NA
1.38X
.94X
.89X
.91X
.96X
L 02X
1. l OX
1.15X
1.20X
1.25X
1.32X
1.37X
1.42X
1.5OX
1.56X
1.64X
1.72X
3.61X
analysis were prepared by BRW, Inc., a company having
2. We have not made any projection of investment income realized from the capitalized interest, construction fund,
or the indicated annual surplus generated each year. It would seem reasonable to assume that any investment
income generated at any rate will only improve the financial feasibility of this project and its respective
financing.
3. The financing contemplated is subject to the unqualified approving opinion of bond counsel.
JURAN & MOODY, INC.
�I Andrew Kyle Merry
Vice President
1 1
I Staff Report
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
TO: Chanhassen BRA
FROM: Scott A. Martin, Executive Director
DATE: August 14, 1981
RE: Request by Mike Sorenson for Increase in Property Appraisal
Mike Sorenson appeared before the City Council on August 3, 1981
to request that the Council consider an increase in the price
offered by the BRA for his property. The Council told Mr. Sorenson
to attend the next HRA meeting and make a presentation to the BRA,
(� since the City is not directly.involved in property acquisition
l negotiations.
Attached are the minutes of the August 3rd City Council meeting and
the information submitted by Mr. Sorenson in his attempt to justify
his demand of $25,000 for his property.
The BRA considered this item on two occasions (June 18 and July 23,
1981), and both times authorized a purchase price not to exceed the
appraised value of $22,000.
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Council Meeting August 3, 1981
-3-
d. Park /Street Maintenance Position. Martin Walsh.
g. North Service Area. Set Public Hearing Date. August 31, 1981.
h. Special Meeting Date. Tour Public Facilities Prior to Final Payment. August 8, 1981.
Motion seconded by Councilman Neveaux. The following voted in favor: Mayor Hamilton,
Councilwoman Swenson, Councilmen Neveaux, Geving, and Horn. No negative votes. Motion
carried.
PROPOSED 14ATER SURFACE USAGE AND RECREATIONAL BEACH LOT ORDINANCES: Councilman Neveaux
moved to hold a public hearing on September 29, 1981, to hear comments on the proposed
ordinances. Motion seconded by Councilman Horn. The following voted in favor: Mayor
Hamilton, Councilwoman Swenson, Councilmen Neveaux, Geving, and Horn. No negative vote;
Motion carried.
REQUIREMENT TO CONNECT TO MUNICIPAL SEWER AND WATER, SENIOR CITIZEN DEFERMENT POLICY:
Foster Janich and C. A. MacLeod are seeking Council approval to not connect to city
sewer and water and,therefore,not be billed. Both have submitted financial statements
and currently their sewer and water assessments are deferred. Staff was directed to
verify amounts shown on the financial statements with current income tax statements.
I
If approved by staff, Councilman Neveaux moved the acceptance and deferment for Foster
Janich and C. A. MacLeod. Motion seconded by Councilman Horn. The following voted in
favor: Mayor Hamilton, Councilwoman Swenson, Councilmen Neveaux, Geving, and Horn.
No negative votes. Motion carried.
FIREARMS ORDINANCE 9B: Councilman Horn moved to approve an ordinance prohibiting the
discharge of firearms and weapons within the City of Chanhassen and for the promotion
of safety and general welfare of the people, and repealing Ordinance 9A. Motion
seconded by Councilman Geving. The following voted in favor: Mayor Hamilton,
Councilwoman Swenson, Councilmen Neveaux, Geving, and Horn. No negative votes. Motion
carried.
E AEL SORENSON: Mr. Sorenson appeared before the Council to present his disapproval
he negotiations by the HRA for his property at the southeast corner of Great Plains . and West 79th Street. Council members generally agreed that they had nothing
o with the negotiations or the price offered and told Mr. Sorenson to attend the
HRA meeting and make his presentation to them.
NORTH SERVICE AREA, REQUEST TO RECONSIDER SPECIAL ASSESSMENTS:
RUBY HUNSINGER: This property is located at the northwest corner of Kings Road and
Minnewashta Parkway. One lateral unit was assessed in 1973 and one lateral and two
trunk units were assessed in 1980. John Hunsinger, representing Ruby Hunsinger, has
requested that the be subdivided along Minnewashta Parkway into two lots.
The City Attorney has researched this property and found that Kings Road is actually
located on the Hunsinger property and reduces the frontage to well below that needed
for two lots. Sewer and water lines to serve the property are located in Minnewashta
Parkway.
Councilman Neveaux moved that one lateral and one trunk unit that was assessed in 1980
be removed for the Ruby Hunsinger property because of the lack of adequate frontage
as a result of incorrect measurements at the time of the placing of the assessment.
Motion seconded by Councilman Horn. The following voted in favor: Mayor Hamilton,
{ Councilwoman Swenson, Councilmen Neveaux, Geving, and Horn. No negative votes. Motion
1 carried.
LDANIEL PLAZIAK: This property is located at the southeastern corner of Koehnen Circle
and Cardinal Avenue and was assessed one full unit in 1973 and.one full unit in 1980.
The property is 88'x300' or 26,400 square feet which is lower than the 30,000 square
feet for two buildable units.
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RUSSELL H. LARSON
CRAIG M. MERTZ
OF COUNSEL
HARVEY E. SKAAR
MARK C. MCCULLOUGH
Scott A. Martin
Executive Director
Chanhassen HRA
Chanhassen MN 55317
Dear Scott:
LARSON & HERTZ
ATTORNEYS AT LAW
1900 FIRST BANK PLACE WEST
MINNEAPOLIS, MINNESOTA 55402
July 8, 1981
Re: Acquisition Parcel #8
Michael Sorenson Property
l
TELEPHONE
(612) 333 -ISII
Please be advised that I met with Mike Sorenson on Tuesday, July 7th,
to negotiate for the purchase of his vacant tract of land at West 79th
Street and #101.
After the customary discussion as to values, I offered $18,000 for the
tract. Mike's demand is $25,000 if the acquisition can be accomplished
within 30 days. Mike informs me that there are no assessments against
the property. You have indicated that this acquisition is funded for
1981 and that we need not wait for the first bond sale.
Please submit the Mike Sorenson
RHL :ner
HRA for consideration.
Ve tru urs,
RUSSELL H. LARSON
Chanhassen City Attorney
CITY OF CHANHASSEN
JUL 9 1981
COMMUNITY DEVELOPMENT DEPT.
IS
OEE.:
RES-
cOUTHWrRT PLUNIIIING R IIEATI1G CO.
COMMERCIAL A RENIURNMAL
INNTALLATION . REMODMINO . SEAMCI:
7606 ERIE. AVENUE
CHANIIANNEN. MIN'N. 3.317
June 16, 1981
Russell Larson
City Attorney
Chanhassen, Minnesota
Dear Russell,
The following is a list of expenses which I incurred on the property
and project at 7901 Great Plains Boulevard from May 1, 1979 to
June 7, 1981.
1. Landscape fees paid to Herb Baldwin in the amount of $1,712.10.
2. Survey costs 'of $450.00 paid to Scholl Madson.
3. Increased building costs at the rate of 10% per year; approximately
$8,000.00 on..a $40,000.00 building.
The above costs do not reflect approximately 100 hours of my time
and effort in the above named project, which includes preliminary
council meetings, meetings with city planners and managers, planning
commission meetings, HRA meetings, and all other meetings applicable
to the project.
Sincerely,
Michael J. Sorensen
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CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
Staff Report
TO: Chanhassen BRA
FROM: Scott A. Martin, Executive Director
DATE: August 14, 1981
RE: Downtown Courtyard Sculpture Competition
Chairman Bill Gullickson will present a report on this item.
S.
7 File 18 -8003
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fflBRIT
PLANNING /TRANSPORTATION /ENGINEERING /ARCHITECTURE
August 11, 1981
TO: Scott Martin
Chanhassen HRA
FROM: Donald W. Ringrose
RE: Downtown Redevelopment Program
Relocation of Gas Utilities
MEMORANDUM
CITY OF CHANHASSEN
R "CEIVED
e1; ;;131981
COMMUNITY DEVELOPMENT DEPT.
We had scheduled a meeting for 10:00 a.m. on August 11th for the purpose of
reviewing the gas and electritc utility facilities in the redevelopment area and
'to identify the requirements for relocating these facilities. At the last minute,
the NSP electric representatives canceled and did not show up for the meeting.
We did, however, proceed with Minneapolis Gas Company.
Roger Elaski of Minnegasco brought with him a map of the project area, which
identifies their facilities in the area. In general, their facilities consist
of 2 and 3 inch low pressure (10 psi) steel distribution lines. There is a line
which basically goes around the instant web and theater.complex. It runs down
78th Street and serves the properties on the north side. They have no major
trunk facilities within the project area:
We reviewed the tentative schedule of the implementation by the City and their
reaction was that they could accommodate it. Their overall reaction was that it
did not appear to be a particularly difficult problem for them to react to the
relocations that will be necessary. They have a great deal of flexibility due
to the localized nature of their facilities and they can, if necessary, run temporary
lines above ground connections to maintain service during the construction period.
It was agreed that they would provide to us in the period of three to four weeks
a general relocation and /or reconstruction plan for their facilities together with
a schedule and an estimate of the cost.
On the issue of cost, it was their statement that it is their preference and policy
that relocation of their facilities for private land development should result in
their being compensated for expenses they incur. In turn, we indicated it was the
City's position that these facilities should be relocated without the cost to the
public improvement project. It was left that this was an issue which should be
discussed after we had a better idea of what the cost would be.
In general, they seemed to be very cooperative. There appears to be no particular
problem in relocating the gas facilities. At such time when we proceed with the
final design, they will initiate their own internal final design work.
BATHER, RINGROSE. WOLSFELD. JARVIS. GARDNER, INC. 2829 UNIVERSITY AVE.. S.E. MINNEAPOLIS, MN 55414 PHONE 612 1 379 -7878
H
PLAN NI NGITRANSPORTATION I ENGI NE ERI NGIARCH ITECTU RE
July 16, 1981
TO: City of Chanhassen
Housing and Redevelopment Authority
Attn: Scott Martin, Director
FROM: Donald W. Ringrose
RE: Chanhassen Redevelopment Program
Northwestern Bell Telephone Company Relocation
File 18 -8103
MEMORANDUM
CITY OF CHANHASSEN
.IUI. 2 01981
COMMUNITY DEVELOPMENT DEPT.
Arijs and I met with Dan Ressler and one of his associates representing the North-
western Bell Telephone Company in our office on Tuesday morning. We reviewed
the overall project, the proposed schedule for implementation of the public, as
well as the private improvements within the redevelopment area, and the impact
on their in -place facilities. They were reasonably familiar with the project prior
to our meeting and had given considerable thought to their relocation program and
overall response.
The Telephone Company appears to be very cooperative in this matter. They indicated
that they will be relocating their facilities as required to accommodate the improve-
ments, and stated that the cost of such relocation will be borne by the Telephone
Company insofar as it affects the public sector. Major relocation or telephone
rehab within buildings is a separate issue not involving the City, but involving the
private property owners that work may or may not be done by the Telephone Company
as it is currently permissible to have such work done by private contractors.
After we had reviewed several options or alternatives that were available to the
Telephone Company, the general concept evolved wherein they are anticipating reloca-
tion of the major cables around the southerly side of the redevelopment project in
the boulevard area of the Ring Road. Their work would be closely coordinated with
that of the roadway construction. Also, they are anticipating some cable replace-
ment and /or reconstruction around the northerly side of the project area along the
residential roadway located immediately north of the redevelopment area.
They are going to prepare a more specific plan and schedule including the identifica-
tion of conflicts and coordination problems, which the City and the private developers
should be aware of. Upon receipt of that information, we will review it to ensure
that it is compatible with the most current schedule and program available at that
BATHER. RINGROSE. WOLSFELD, JARVIS, GARDNER, INC. 2829 UNIVERSITY AVE. S.E. MINNEAPOLIS, MN 55414 PHONE 612 1 3797878
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Mr. Scott Martin
July 16, 1981
Page 2
time. In general, I would consider the meeting very useful and state that I do
not anticipate, based on this discussion, any particular problems with the
relocation of telephone facilities.
The question of telephone facilities raises the obvious question of electric
power and gas utilities; therefore, we have proceeded to initiate meetings with
those two utilities such that we can establish similar preliminary designs and
schedules for the relocation of their facilities as required. We'll keep you
informed of developments in that regard.
DWR /dh
cc: Terry Herman
Arijs Paklans
t,